Internal financial controls
From BayTeam
A Note from your Treasurer, July 2008
This letter is to inform you of a number of internal controls and accounting procedures that are being, and have been, implemented. The objective of this internal control system is to provide a reasonable, but not absolute, assurance that resources are being used and accounted for appropriately.
Contents |
Controls in place
- We have engaged the services of Price Waterman accounting firm to do our annual taxes, perform a mid-year and year-end review of the books, and publish a report on those reviews for the membership.
- Checks and balances on monies received: Most all deposits to the accounts are reviewed by at least 2 people:
- The bulk of our revenue is from trial entry fees that are accounted for first in the trial secretary’s spreadsheet of entries and then forwarded to me to enter into the QuickBooks on-line accounting system.
- Our QuickBooks license allows up to 3 simultaneous users, plus our accountant, to enter the system at any time.
- The PayPal account is handled by Club member . She reviews and reconciles all monies through PayPal before they make their way to the bank account.
- The Vice President, Barbara Snarr, receives & records all membership dues before they are forwarded to me for deposit.
- The bulk of our revenue is from trial entry fees that are accounted for first in the trial secretary’s spreadsheet of entries and then forwarded to me to enter into the QuickBooks on-line accounting system.
- Price Waterman will receive unopened bank statements for review before they send them to me for bank reconciliation. If any club member is particularly interested in performing this function instead of having Price Waterman do it, please let me know. This activity will commence with the July bank statement.
- This review will include examining the checks to assure they were written to a legitimate/recognized vendor or payee.
- Examining the endorsement on each check.
- Looking at the monthly deposit record to ensure it corresponds with the bank statement
- This review may include doing the actual reconciliation.
- Some of the expenses (particularly trial expenses) are accounted for both by the trial chairs and me. Each trial chair and the trial secretaries all have a template for trial P&L so they know what expenses to record and can have a good handle on the profitability of their endeavor as they go along.
In addition, I have come to realize that I have been lax in communicating the financial records to the whole membership. I always give figures verbally in club meetings, but have been lax about ensuring that the full statement appears in writing, especially for those who may be interested and unable to attend a meeting.
Status as of July 14, 2008
- The final accounting for 2007 is about a week or so away. The biggest obstacle has been properly accounting for the certs we issue and receive. I think I made something of a mountain out of a molehill, neglecting to fully realize the wealth of skills available among our many knowledgeable and talented club members. But I now have a handle on it all – thanks to the very patient assistance of one such member. I’ve got a fair amount of data entry to complete in order to re-distribute all of the 600+ certs in the system and then it will be done. (Hence the “week or so”)
- At that point Price Waterman will be able to complete our taxes for 2007 and the year-end financial review. Shortly following that, reports will be ready for the 1st two quarters of 2008 and Price Waterman will be able to do our mid-year review.
Going Forward
- Meeting minutes will be accompanied by an attachment containing the relevant financial information.
- Full quarterly statements will appear in the appropriate place on the Bay Team website.
- All Trial Profit & Loss statements will be posted to the website.
Contact me
As always, please feel free to contact me with any questions.
Yours truly, Linda White, Treasurer
