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Audit Objective

Determine whether Company officials ensured that financial activity was properly recorded and reported and that money was safeguarded.

Key Findings

• Fundraising activities lacked adequate records and reports and cash was not safeguarded.
• The Treasurer paid bills without prior review and approval from the Company.
• The Directors did not submit an annual report on revenues and expenditures of foreign fire insurance tax proceeds or submit IRS Form 990 as required by law and the Company’s bylaws.

Key Recommendations

• The Committee should establish controls for handling cash at fundraising events, and ensure members responsible for running fundraising activities create financial reports.
• The Treasurer should pay bills after Company approval.
• The Directors should file all necessary reports as required by applicable laws and regulations.

Company officials agreed with our recommendations and indicated they will take corrective action.