This Operating Procedure contains guidelines for conduct of the DCC annual financial audit. Reference DCC Operating Procedures for DCC Accounting and DCC Budget, OPOO1F and OPOO3F.
BACKGROUND: DCC BY-LAWS ARTICLE II, Section 2 states: At the December General Meeting, each year the President shall appoint a senior member who is not a member of the Board of Directors to chair a three person committee to audit the books and accounts of the Club; such committee shall report to the Board at the March General Meeting.
PURPOSE: The purpose of the annual audit shall be to obtain reasonable assurance that DCC financial records are free from material misstatement, to assess the accounting principles used and significant estimates made by the Club management, and to evaluate the overall financial statement The Audit Committee shall recognize that DCC accounting procedures are for primary recording and summarizing cash receipts and disbursements of the Club by other than professional accountants and are not intended to conform with formal accounting procedures or principles.
APPROACH: The Audit Committee shall inspect random transaction samples to assess compliance with DCC Operating Procedures for accounting The final Receipts and Disbursements (R&D) Report for the audit period shall be reviewed as the Club financial statement and compared with the final R&D Report for the preceding audit period. The Audit Committee Report shall contain statements summarizing opinions based on these inspections and reviews.
RECORDS AND FINANCIAL DATA: For the audit period, the DCC Treasurer shall make the following items available to the Audit Committee.
Monthly Statements for all Bank accounts
Check registers for all checking accounts
Invoices for all disbursements
Itemized Deposit records for cash Receipts
R&D Reports including the final R&D report for the preceding audit period
The Transaction Journal with postings to Classified accounts
The Annual Budget