This week we are covering all the skills you’ll need to successfully complete your mid-year audit in January. These five steps include the new insurance requirement of having an audit committee. Today we’ll go over step four.
Step 4: Present the audit for approval
The audit has been completed by the auditor and reviewed by the audit committee. Now it is time to take it to the executive board for its first approval.
- The President needs to include the adoption of the audit on their January or February Executive Board Meeting Agenda (check your bylaws for the specific meeting date).
- The Auditor reads the report to the Executive Board. They only need to say: “I have examined the financial records of the treasurer of (unit name) and find them (correct, substantially correct, partially correct, or incorrect).”
- The Auditor then shares any recommendations or comments from their report with board.
- At this time the board can discuss ways to improve practices, or do some training to ensure that any errors don’t happen again.
- The auditor or any other officer present then moves to adopt the audit by saying “I move to adopt the mid-year (or end of year) audit for the dates of _____ for the checking account (or savings, PayPal, etc).”
- The chair will then call for a second, further discussion and a vote. The motion will be carried to your association for final approval.
- NOTE: This process must be done for each and every account you have — so if you have a checking account, a savings account and a Square account, you will do this process three different times and have three different motions.
- As soon as the executive board has adopted the audit, you must put the date of the adoption on the audit report.
You are one final step away from completing your mid-year audit process. The association’s approval is the final step you need, and we will go over that in Step 5!
Click here to go back to Step 1.
Click here to go back to Step 2.
Click here to go back to Step 3.
Click here to view Step 5.
Click here to return to the blog homepage.