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THE CREDIT INSTITUTE OF CANADA

Chapter ReviewScheduleused by National Audit Committee

For Chapter

(Enter Chapter name above)

Date of Review:

Quarter Ended:

Review Done by:

(Show your full name and all your credentials)

(To National Audit Committee [“NAC”]Reviewers)

A. NAC Reviewers, please do following:

  1. Complete this form electronically, not in your own hand writing.
  2. Complete the four points immediately following the heading at the top of this page.
  3. Fill in your initials electronically in the column on the right as you complete your review of each item in the table below.
  4. If certain information is not available in the chapter package forwarded to you by the NAC Chair, please ask the Chapter Treasurer for it. If the Chapter Treasurer or the Chapter President cannot provide the information, explain the circumstances on this form.
  5. If discrepancies become evident in your review, request clarification from the Chapter Treasurer and action being taken. Explain the circumstances on this form.
  6. Enter allyour comments under the "Notes by NAC Reviewer" area provided for each item but leave the “Review Requirements” untouched.
  7. The “Notes by NAC Reviewer” area is pre-set to reflect your text in blueautomatically.
  8. As you enter and expand your work under the “Notes by NAC Reviewer”area for each item, the line in the table will move downwards automatically.
  9. As the whole table is expanded downwards, the column headings will replicate at the top of each new page automatically.
  10. When completed, return this form as a “Word” document attached to your email, (not in “pdf” format) as per instructions in item #16 in the table below.

B. The NAC Chair will forward the following documents to NAC Reviewers after establishing the randomly chosen quarter for the current review:

  1. This document in blank form.
  2. The completed document used for the review in the previous term.
  3. The relevant chapter financials (financial stmts., bank stmts., investment stmts.- whereapplicable) for this review.
  4. The relevant chapter financials for the previous quarter to assist NAC Reviewers to verify carry over balances to the quarter under current review. The previous quarter is not subject to your review.
  5. Completed “Form for Authorized Specimen Signatories at Chapters” for both the current term and the previous term. This form will be circulated annually each May by National office to all chapters for completion by or before the end of June.
  6. Completed form for “Self-Assessing Control Framework for Chapters”.This form will be circulated annually each May by National office to all chapters for completion by or before the end of June.
  7. A blank template of financial statementsdesigned and simplified for use by chapters effective April 1, 2013 that reflect the new accounting standards effective January 1, 2012 pertaining to policy no.1 below. The Canadian Institute of Chartered Accountants has issued a comprehensive guide in this respect at the following link:
Item No. / DatePolicy
Approved or Amended by National Board / “National Board Approved Policies”and “NAC Requirements”
Set Out the Review Basics of This Document
“Review Requirements” are Set Outin red text to be Addressed by NAC Reviewer / Reviewer
To Initial
Electronically
Each Item WhenDone
June 19/12 / Accounting Standards Effective January 1, 2012
That the accounting standards effective January 1, 2012 as set by the out CICA Accounting Standards Board in “Part III of the CICA Handbook – Accounting” be adopted for use by National and Chapters.
Review Requirements
  1. Effective April 1, 2013 determine and identify parts, features or formatof the financials that do not comply with the blank template mentioned in the above notes B7.
Notes by NAC Reviewer:
April 10/13 / Bank Errors, Omissions Or Irregularities
Chapter Treasurers must review and reconcile their chapter’s bank statements immediately after receipt of their chapter’s bank statements and report any errors, omissions or irregularities within 30 days of the date the bank mails or otherwise sends statements to chapters since failure to do so transfers the burden of proof of errors to the chapters.
Review Requirements
  1. Determine if any bank errors, omissions or irregularities occurred for the period under review.
  2. Determine if resolution of any of the above were not concluded successfully and note them below.
Notes by NAC Reviewer:
January 21/12 / Banking
  1. All chapters shall restrict their banking activities to one bank account at only one reputable and easily recognizable financial institution.
  2. In the event any chapter has investments with their bank such that the accounting for those investments is more easily handled through a second bank account, such second bank account will be permissible.
  3. This policy recognizes that some chapters may have their investments with an investment firm other than their bank.
Review Requirements
  1. Determine if chapter deals with more than one bank.
  2. If more than one bank, request explanation and record here.
  3. Determine if transactions are all handled through bank one account.
  4. If more than one account, request explanation.
  5. Determine if investments are done with the same bank or some other financial institution.
  6. If another financial institution, request name of institution and record here.
  7. Review and compare bank balances on bank statements to Balance Sheet.
  8. Electronicallyobtain copy of Certificates of Deposit ("CDs") and Government Investment Certificates ("GICs") and any other investment instruments.
  9. List investment instruments in Notes section below showing the following:
  1. Owner on the certificate(s) [should be CIC- and name of chapter].
  2. Date when investment(s) were purchased.
  3. Maturity date of each investment.
  4. Total value of each investment as at date on investment statement.
  5. Interest earned or to be earned for each investment as at date on investment statement.
  6. Determine where total value of investments is recorded in Chapter financials.
  7. Determine where earned interest is recorded in Chapter financials.
  1. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended -January 21/12 / Cheques Issued by Chapters
  1. Two (2) signatures are required on all cheques at all times and no blank cheques may be pre-signed at any time.
  2. The body of the cheque is to be completed in full before the cheque is signed.
  3. Appropriate backup evidence shall be provided and retained in support of the need for executing a cheque.
  4. At no time shall the recipient of the cheque be one of the cheque signers.
Review Requirements
  1. Verify that two signatures are on all cancelled cheques.
  2. Verify signatures on cancelled cheques to list of specimen signatures provided by NAC Chair.
  3. Verify that cheque recipient is not also a signatory.
  4. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
April 24/12 / Debit Card at Chapters
Chapters may seek or obtain a debit card for use by any member of the chapter or its board for deposits only.
Review Requirements:
  1. Determine and seek verification that no debit cards have been established for any chapter or board member.
  2. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended -
January 21/12 / External Fiscal Year-end Audit by Chapters
  1. To be compliant with the National bylaws, all chapters shall have an external audit conducted of their fiscal year-end financial statements, including bank statements and investment statements (assuming a chapter has investments) and GST/HST reporting together with any other ancillary documentation used by the chapters.
  2. All chapters are directed to engage a person doing their external fiscal year-end audit, who at the minimum has an accounting background (such as CA, CGA, CMA, etc.).
  3. Immediately on completion of the external audit, all chapters shall submit a copy of the fiscal year-end audited statements in “pdf” format or as an attachment to National office by the end of May to enable the National Treasurer to consolidate the chapter financial information with the National financial information for presentation to the National AGM normally held in June.
Review Requirements
  1. Request confirmation that an external audit was done of the chapter financials for the last fiscal year ended March 31.
  2. Request confirmation that a copy of the audited fiscal year end chapter financials has been forwarded electronically to National office to enable National Treasurer to prepare annual report for National AGM.
  3. If not, request confirmation when that will be done.
  4. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
January 21/12 / Financials, Bank Statements, Investment Statements Provided at all Chapter Meetings
  1. All chapters shall always provide a copy of the bank statement and investment statement (assuming the chapter has investments) along with the latest chapter financials for review at each and every Chapter Board meeting.
  2. In addition to any and all questions that may arise about the bank statement, investment statement (if applicable) and chapter financials, the Chapter Board shall inspect and affirm that the balance (bank account and investments if any) are reflected in the chapter financials.
  3. All such financial documents shall accompany and become part of the Chapter Board minutes and preserved for the official record in compliance with the requirements of the Canada Revenue Agency.
Review Requirements
  1. Determine from Chapter Treasurer if the above is done.
  2. If not, request explanation from Chapter Treasurer.
  3. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
April 24/12 / Processing Credit Card Charges at Chapters
a.Chapters must exercise ultimate caution and carefully protect credit card information such as (name of credit card company, name of credit card holder, credit card number, expiry date and where applicable the three digit CVV number next to the cardholder signature on the back of the credit card) when accepting payment by this means from all persons attending chapter functions.
b.For those chapters that have the credit card information processed by the National office, once National office confirms that all the credit card information has been processed and cleared, Chapters must properly destroy the hard copy information by shredding it and the electronic information must be deleted from the computer.
Review Requirements:
  1. Determine that the above is done.
  2. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended -
April 24/12 / Providing Specimen Signatures of Authorized Chapter Signatories on Prescribed Form
  1. Chapters shall provide specimen signatures annually of all current authorized chapter signatories including their National Director or in the alternative the National Director at Large on a prescribed Board approved form which will be circulated to chapters annually in the month of May.
  2. The fully executed form shall be submitted in “pdf” format or as an attachment to the National office by the end of May annually for use by the NAC for the verification of signatures on cheques, which undertaking is compliant with existing privacy legislation.
Review Requirements
  1. If the National Director is not shown on the prescribed form, do the following:
  2. Determine name of National Director for this Chapter.
  3. Provide explanation why National Director is not an authorized signatory.
  4. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
January 21/12 / Records Retention to be in Compliance with Canada Revue Agency Requirements
Each Chapter shall investigate options and establish its system that will result in compliance with Canada Revenue Agency policies.
Review Requirements
  1. Determine from Chapter Treasurer if the above has been established.
  2. If not, request explanation and plan to accomplish this requirement.
  3. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended
April 24/12 / Self-Assessing Control Framework for Chapters
All chapters shall complete annually the Board approved “Self-Assessing Control Framework for Chapters” by the end of May annually and then immediately forward the fully executed document in “pdf” format or as an attachment to the National office for furtherance to the Chair of the NAC. Such form will be circulated to chapters annually in the month of May.
Review Requirements
  1. Determine if the Board approved “Self-Assessing Control Framework” document was done.
  2. Determine when the document was forwarded to National office.
  3. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended -
January 21/12 / Signing Off on Financial Documents by Chapter President & Treasurer
The Chapter President and Chapter Treasurer (including title for each) shall both sign their initials and print their name and date thereby confirming the accuracy of the financial statements, bank statements and investment statements, including GST/HST reports prescribed by Canada Revenue Agency and copies of cancelled cheques prior to sending this information in “pdf” format to the National office quarterly by the end of the month immediately following each quarter.
Review Requirements
  1. Verify that the following are signed by President & Treasurer showing title, initials and date.
  2. Chapter financials
  3. Bank Statements
  4. Investment Statements if any
  5. GST/HST Reports
  6. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
Amended -
January 21/12 / Spot Reviews By NAC
Randomly chosen spot reviews shall be conducted annually by the NAC of chapter financials (including but not limited to bank and investment statements, cancelled cheques and GST/HST reporting) for a minimum of one randomly chosen quarter for each chapter.
Background Information:
This is an annual spot review done by NAC Reviewers of a randomly chosen quarter and reported electronically on this document; it’s not an audit. Technically, an audit occurs when original documents are audited on site in accordance with current Canadian auditing standards. The National Board approved Internal Control Policiesfor Chapters are replicated alphabetically and verbatim in this document. The Internal Control Policies for Chapters and updates of it are posted to the chapters’ webpage for easy access at any time by all chapter board members.
Notes by NAC Reviewer:
Oct. 18/11 / Submission to National of Quarterly Chapter Financials, Investment Statements, GST/HST Forms and Annual Audited Year-end Financials & Investment Statements
That the following conditions for chapters be approved effective immediately and to continue until such time as the Board directs otherwise:
  1. To submit in “pdf” format to National office by the end of the month following each quarter (June 30, September 30, December 31 and March 31) the following:
  2. Chapter quarterly financials including investment statements, both of which are to be signed and dated by the Chapter President and Chapter Treasurer(including titles) thereby confirming accuracy of those documents, for the first fiscal quarter ending June 30;
  3. Completed and signed GST/HST forms; and
  4. To reconfirm to chapters and to be compliant with the National bylaws, that all chapters must continue to have the annual audit conducted for the fiscal year ending March 31 by a person with an accounting background together with a “Statement of Work” signed and dated by the person conducting the audit; and
  5. Immediately on the completion of such annual fiscal year-end audit, each chapter shall submit in “pdf” format to National office by the end of May, a copy of its audited fiscal year-end financial statements and investment statements together with the “Statement of Work” signed and dated by the person conducting the audit to enable the National Treasurer to consolidate voluminous chapter financial information together with National financial information for his/her report to the National AGM.
Review Requirements
  1. Determine if any of the above conditions were not carried out and note discrepancies below.
Notes by NAC Reviewer:
Amended -
January 21/12 / Term of Office for Chapter Treasurers
Chapter Treasurers shall be permitted to be in office as Chapter Treasurer for a maximum of four consecutive one-year terms after which there must be at least a one year break before this member may serve another term as Chapter Treasurer. If the chapter is unable to find a replacement, they may apply to the National Audit Committee for an extension of up to two additional one-year terms. Any requests for an extension beyond six consecutive one-year terms will not be considered or granted.
Review Requirements
  1. Record name of Treasurer for reference in succeeding year.
  2. Determine when first elected or appointed as Treasurer.
  3. Determine term of Treasurer (number of years & months).
  4. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
NAC Requirement / CIC Credit Cards at Chapters
Review Requirements:
  1. Determine and seek verification if credit cards have been issued to a chapter or board member.
  2. Determine name of credit card company.
  3. Determine name of holder on card (should be “Credit Institute of Canada - ______Chapter”).
  4. Determine expiry date of credit card.
  5. Determine how many cards have been issued.
  6. Determine name and title of each person holding the CIC credit card.
  7. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
NAC Requirement / GST/HST Returns
Review GST/HST returns and remittances. Determine discrepancies and note them below.
Review Requirements
  1. Determine that the returns are prepared accurately.
  2. Identify any outstanding issues and note them below.
Notes by NAC Reviewer:
NAC Reviewer / On completion of review, NAC reviewer to email this completed form as a “Word” attachment (not in “pdf” format) to NAC Chair.
Notes by NAC Reviewer:
NAC Chair / NAC Chair reviews report and adds any notes below.
Notes by NAC Chair:
Email Circulation / Chair of NAC emails this report with a cover email to the following:
  • Chapter President
  • Chapter Treasurer
  • National Director for respective Chapter
  • Member of NAC doing the review
  • General Manager
Emailed on (date)

Revised May 1, 2013