AIM-IRS
INTERNAL AUDIT
YEAR END DECEMBER 31, 2010
AIM- IRS
FINAL
2010 AUDIT REPORT
July 23, 2011
BY
INTERNAL AUDIT TEAM
ELNORA V. HOLMES, CHAIR
VICTOR PICHON, TEAM MEMBER
MARY CASON, TEAM MEMBER
ABMTS- Cincinnati, OH
Income:
The general ledger and the transaction detail by account were scanned for large and/or unusual items. Selected the following income items for further analysis:
Account # Description of account Amount
R-4000 Registration$92,175.00
R-4010T Shirts 47.00
R-4020 Vendors 1,275.00
R-4030 Networking Event-Social Mixer 240.00
R-4050 Executive Networking-Luncheon 1,325.00
R-4060 Saturday Night Gala 590.00
R-4070 Hospitality Suite 285.00
R-4080 Souvenir Book & Bag 65.00
R-4100Executive Symposium & WS 45.00
R-4120Youth Conference 4,453.18
R-4130 Program Book Ads 3,145.00
R-4140 Opening Session 80.00
R-4161 Workshop Tickets 320.00
R-4251 Casino Trip Tickets 492.00
R-4252 Shopping Trip 280.00
R-4256 Bus shuttle 50.00
R-4257 Award Dinner 590.00
R-4258 Dinner Cruise 4,858.00
R-4261 Baseball Game 42.00
R-4400 Fundraiser 535.00
R-8500 Petty Cash-ABMTS 114.73
R-9000 Bank Service Charge 595.00
R-7000 Transfer-Intra –Nat 10,000.00
______
$121,601.91
======
Conclusion
Only minor adjustments to some of the gross receipts ABMTS categories were made but the total gross receipts did not change. The income voucher system wasproperly used for all income during the week of the ABMTS activities.
Scope: An analysis of the expenses incurred and charged to the 41th AMBTS was done. The general ledger was scanned to determine the nature of the accounts and expenditures. Checks was conducted to determine if all expenses were properly accounted for and charged to the correct accounts. A test was made to determine if expenditures were properly authorized and made in accordance with the AIM manual of operations.
Conclusion: The general ledger, check register and disbursement vouchers were analyzed for the expenditures. These amounts were accepted as correct per the general ledger. All expenses were supported by properly executed disbursement vouchers. Executed contracts were examined and all appear to be in order. The disbursement vouchers were in proper order, the invoices, receipts and contracts were attached and the required signatures and approval was complete. There were no unusual expenditures that were significantly difference than in prior years. A reviewed was done of all disbursement vouchers and no unusual issues were noted. The expenses were in line with prior years. All expenses accepted as correct. No further analysis is warranted.
The National Treasurer used the Quicken Software to post accounting transactions. The books and records were in excellent order. The ABMTS team worked hard during this conference. The internal audit team was able to follow transactions. There were adequate internal controls and documentations.
The Regional Accounts
R-5000 Membership Dues
The books reconciled to the bank statements. The 2010 operating account membership income reports were reviewed and analyzed. Each chapter had to timely submit to the National Treasurer their reports with complete and accurate membership list with dues prior to May 1, 2010. Each individual member paid $15.00 per capital dues. The National Treasurer maintained the postmark envelopes received for additional documentation for timely submission of the reports and payments. Each document was date stamp when received. Once the National Treasurer received the timely submitted per capital dues, a check was disbursed to the regions for dues rebate @ $2.00 per member. The mission of the internal audit team was to determine if the correct rebates were submitted to each region. The Membership Correction Forms for submission of payments to National were reviewed and analyzed and reflected the timely submission of membership dues and late payments of membership dues. The disbursement vouchers for rebate payments were reviewed. The documentation submitted from the individual chapters was reviewed and a spreadsheet was reconstructed to validate the amounts that were disbursed to the individual regions.
In conclusion, the income was properly reported and the National Treasurer use the prior to May 1, 2010 cut off date to compute the dues rebate for the regions.
National Operation Account
Wells Fargo Bank, N.A. is AIM IRS National Operation Account basic business checking account. Check images were scanned to ensure that two authorized signatures were on each checks and to verify the endorsement on the back of the checks.
The Treasurer conducted the monthly bank reconciliation that reconciled to the book. The National President and the National Vice President or National Treasurer properly authorized each check. There were not any discrepancies in the endorsements of the checks. The authorizers did not authorize any check payments for themselves.
The National Treasurer prepared quarterly status reports and financial statements.
CFC REPORT - 2010
The Internal Audit Team conducted an audit on the 2009-2010- 2011 CFC account. The findings will be presented directly to the National CFC Treasurer. The National CFC Funds are controlled by the National CFC Treasurer.
The organization is presently a CFC affiliate organization and receives donations through the Combined Federal Campaign.
The voucher system was used for all income and expense items. All vouchers should be dated, numbered and maintained in numerical order.
Mission of Internal Audit Team was to review records maintained by the National CFC Treasurer to certify the accuracy in deposits and disbursements of funds to the local AIM-IRS chapters.
Internal Controls Evaluation:
The Internal Audit Team interviewed the National CFC Treasurer in regards to Internal Controls. All receipts are received by the National Executive Secretary. These checks are then forward to the National CFC Treasurer for deposit. The Modestine Haynes Scholarships are processed in a very rigid manner requiring the approval of the National Senior Vice President before forwarding onto the recipients or universities. In fact, all disbursements are routed through the NSVP for final approval. The process of using a cover letter which lists/summarizes each check that the NSVP is quite good because the process allows the NSVP to easily keep track in chronological order all checks issued. I believe this a strong internal control feature.The National CFC Treasurer date stamps the checks and deposits within one day of receipt.
It should also be noted that in addition to the National Executive Secretary receiving all checks that the NSVP receives all original bank statements and cancelled checks.
Confirmation letters were prepared and mailed to 202 CFC agencies for 2009-2010- 2011 calendar years. The findings were as follows:
Descriptions / AmountPositive Responses / 31
Negative Responses / 117
No Respond / 51
Returned envelopes / 3
Total / 202
The audit team sent out 202 confirmations and 148 were returned with 117 affirming that AIM CFC had no activity with them. There were 31 that had the activity. This was consistent with what the CFC Treasurer had anticipated. Per CFC Treasurer, for 2011 thus far, have the activity in 31 states out of 38 states. Thus 31 out of 38 (82%) is good. Moreover, the 117 with no activity indicates that AIM CFC is not receiving funds that are totally unaccounted for.
Disbursements:
Funds are restricted funds and must be in a separate account and only used for the stipulated purpose. Any expenses in the management of these funds must be verified and submitted to the National Senior Vice President for approval and reimbursement. Disbursement vouchers are used for expenses. They are dated, have two signatures for authorization, attached invoices and receipts.
The CFC Funds request from the Chapters represented the support for payment. The Modestine Haynes Scholarships are processed in a very rigid manner requiring the approval of the National Senior Vice President before forwarding onto the recipients or universities. In fact, all disbursements are routed through the NSVP for final approval. The process of using a cover letter which lists/summarizes each check that the NSVP is quite good because the process allows the NSVP to easily keep track in chronological order all checks issued. We believe this a strong internal control feature. All disbursements are date stamped as paid and appropriately noted on supporting documentation.
.
Conclusion:
Responses received from the active states were 31 out of 38 (82%) which is good. Moreover, the 117 with no activity indicates that AIM CFC is generally not receiving funds that are totally unaccounted for. However, the analysis for 2009 reflects $128.01; 2010 reflects $102.27 deposits not accounted for and 2011 reflects $20.67 not accounted for. The differences were minor.
It should also be noted that in addition to the National Executive Secretary receiving all checks that the NSVP receives all original bank statements and cancelled checks.
Over the 3 year period covered by the confirmation process, over almost 400 checks were processed by the CFC treasurer; however, nine (9) checks totaling $250.95 could not be immediately identified as received and deposited. The National Executive Secretary, relocated from Akron, OH to Florida which created an inherent problems with mail and transfer of mail. This could account for much of the 6 month delay with respect to certain checks. Recent mailings have been timely.
The CFC Treasurer worked diligently in maintaining the CFC funds. This action allows AIM-IRS to continue to be eligible to receive CFC fund donations.
1