Charge:
The Audit Committee is responsible for the following:
The Chair is also responsible for communicating all relevant matters to the Board as necessary.
Membership:
Membership of the audit committee will consist of two second year At-Large Board Members and three members appointed from general membership. The Chair of the audit committee will be appointed from the two second year At-Large Board members.
The three committee members appointed from the general membership will be appointed to three-year staggered terms by the First Vice President prior to taking office as President.
Immediate self-succession of regular members normally is not permitted except in the case of an individual who completes an unexpired term and is appointed to serve an ensuing full term. (SACUBO Bylaws Article 6.1 Appointments)
The members will be free from any financial relationship with SACUBO that would interfere with independence or the perception of independence. All members of the committee will have a working knowledge of basic finance and accounting practices.
Meetings:
The work of the committee is accomplished by mail, fax, e-mail and telephone.
The Chair, or Audit Committee member as designee, will provide a report to the Board at its first meeting subsequent to the completion of the audit and will report the auditor’s findings to the SACUBO membership at the Annual Meeting and via the SACUBO Ledger.
Linkages:
The Audit Committee will obtain all records necessary from the SACUBO Treasurer.
The Audit Chair will report directly to the SACUBO Board.
Tasks and Responsibilities:
Upon committee appointments following the SACUBO Annual Meeting, the Chair should immediately contact the firm of independent auditors which has been engaged for the SACUBO fiscal year ending on May 31.
The Chair should clarify with the independent auditors the expected scope of work, timeline, and methods of reporting.
The committee should ensure adequate reviews of Annual Meeting funds, Drive-In Workshop funds, Fall Workshop funds and general Association funds.
The Chair through its chair should discuss with the independent auditors at the completion of their review the adequacy of internal controls, any conditions that require attention, any changes in accounting policies, principles or practices made during the year or any suggestions for improvement.
The committee should review the audit services contract at least every five years with audit firm rotation preferred.
The Chair should include in the audit report to the Board a review of the audited financial statements, the independent auditor’s management letter; a review of the adequacy of the contract for audit services for the next fiscal year end; and a recommendation concerning confirming, renegotiating or terminating the contract as appropriate.
If no contract exists for the upcoming year end, the Audit Committee will solicit bids for services and recommend to the Board the selection of an independent accounting firm. This should be accomplished no later than the Winter or Annual Meeting Board meeting to allow the accounting firm sufficient time for the engagement.
The committee should review with the Treasurer the Treasurer’s bond and all insurance covering SACUBO activities and report to the Board the results of the review, making recommendations to the Board as appropriate.