L ouisiana Purchase Z oologicalSociety
FinancialStatem ents
D ecem ber 31,2003
L ouisiana Purchase ZoologicalSociety
D ecem ber 31,2003
IndependentA uditors'Report
Statem entofFinancialPosition
3
St
a tem entofActivities
4
St
a tem entofCash Flow s
5
N otesto the Fina
n cialSt
a tem ents
6
IndependentAuditors'Reporton Com pliance and on Inter
n alControl
O verFinancialReporting Based on a
n A uditofFina
n cialSt
a tem ents
Perform ed in A ccordance w ith G overnm entA uditing Sta
n dards
9
Schedule ofFindings
11
Frands I.Huf
fm an,CPA
L.Fred Monroe,CPA
EstherAtteberry,CPA
Luffey
H uffm a n
&
M
onr
oe
(A ProfesslonalACCOUntlng Corpocatlon)
C ERTIFIED P U B LIC A C C O U N TA N TS
A U D ITO R S'
B oard of D irectors
Louisiana Purchase ZoologicalSociety
W e have audited the accom panying statem ents of f
inancialposition of the Louisiana
Pumhase ZoologicalSociety (the Societ
y )as of December31,2003,and the related
statem ents of activities and cash f
lows for the year then ended. These f
inancial
statements are the responsibility ofthe Societ
y 's management. Ourresponsibilit
y is to
expr
e ss an opinion on these f
inancialstatem ents based on ouraudit.
W e conducted ourauditin accordance w ith auditing standards generally acc
e pted in the
U nited States of A m erica,the standards for f
inancialaudits contained in G ovem m ent
A uditing Standards, issued by the Com ptroller G eneralof the United States and the
Louisiana G over
n m entalAudit G uide,issued by the Louisiana Legislative Auditor and
the Societ
y of Louisiana Certif
ied Public Accountants and the Louisiana Legislative
Auditor. Those standards r
e quir
e that we plan and perform the audit to obtain
reasonable assurance about w hether the f
inancial statem ents are free of m aterial
m isstatem ent. A n audit includes exam ining,on a test basis,evidence suppor
ting the
am ounts and disclosur
e s in the f
inancialstatem ents. A n audit also includes assessing
the accounting principles used and signif
icantestim ates m ade by m anagem ent,as w ell
as evaluating the overallf
inancialstatem ent pr
e sentation. W e believe that our audit
provides a reasonable basis forouropinion.
As mor
e fully described in Note 2, the Societ
y did not account for its inventory at
Decem ber 31,2002. A s a result,NetA ssets at Januar
y 1,2003 and C ost of Sales for
2003 are both m aterially understated.
In our opinion, because of the ef
fects of the m atter discussed in the preceding
paragraph, the f
inancial st
a tem ents referr
e d to in the f
ir
s t par
a gr
a ph do not pr
e sent
fairly,in conform it
y with accounting principlesgener
a lly accepted in the United States of
America, the f
inancial position of the Louisiana Purchase ZoologicalSociet
y as of
Decem ber 31,2003,ofthe r
e sults of its operations and its cash f
low s forthe yearthen
ended
(318)387-2672 *FAX (318)322-8866 ~ww w .lhm -cpas.com
1100 N 18"~ST ~ PO Box 4745 . M onroe LA 71211-4745
M EMBERSOFTHEAMERICAN INSTITUIE OFCERIIRED PUBUC ACCOUNTANTS
B oard ofD irectors
Louisiana Purchase ZoologicalSociety
In accordance w ith G over
n m ent A uditing Standards,we have al
so issued our r11
~port
dated April12,2004,on our consideration oft
heSociety'sinternalcontroloverf
in~ cial
reporting and our tests of its c
o m pliance w ith certain provisions of law s, regulations,
contracts and grants.Thatreport is an integralpar
t ofan auditperform ed in accordance
with Gover
n mentAuditing Standar
d s and should be read in conjunction with this repor
t
in c
o nsidering the results ofouraudit.
(A ProfessionalAccounting Corporation)
A pril12,2004
LO U ISIA N A PU R C H A SE ZO O LO G IC A L SO C IETY
STA TEM EN T O F FIN AN C IAL PO SITIO N
D E C EM BER 31,2003
A SSE TS
Cash
A ccounts Receivable
Inventory
TO TAL A SSE TS
35,541
2,500
6,500
44,541
LIA BILITIES AN D N ET A SSETS
Liabilities
A ccountsPayable
PayrollTaxesPayable
TotalLiabilities
5,041
1,901
6,942
N et A ssets
U nrestricted
T otalN etAssets
TO TA L LIA BILITIES A N D N ET A SSE TS
The accom panying notesare an integralpartofthisstatem ent.
37,599
37,599
44,541
LOUISIANA PURCHASE ZO O LO G ICAL SO CIETY
STATEM ENT O F A C TIV ITIES
FO R TH E YEA R END ED D EC EM BER 31,2003
Tem porarily
Restricted
U nrestricted
Supportand R evenues
M em berships
Grants-LouisianaPurchase Exhibit
Donations-Louisia
n a Pu
r chase Exhibit
G iftshop revenue
G if
t shop expenses,including costofsales
Total
10,685 $
82,500
37,393
10,685
82,500
37,393
37,749
37,749
4,135
45,314
187
4,135
45,314
187
217,963
217.963
56,093
(18,344)
7,688
Birthday party revenue
Birthday party expenses
Program incom e
Inter
e stincom e
(3,553)
TotalUnrestr
icted Support
31.711
N etA ssetsReleased From Tim eRestrictions
(31,711)
TotalU nrestr
icted Supp
or
t and Recla
s sif
ications
217.963
Expenses
Program Services:
Louisiana Pu
r chaseEx
h ibit
Program expen
s es
176.630
20,241
7.138
204,009
176,630
20,241
7.138
204,009
55,858
6,010
2,672
64,540
55,858
6,010
2,672
64,540
Total expenses
268,549
268,549
D ecrease in netasset
s
(18,875)
(31,711)
(50,586)
56,474
31.711
88,185
Zooprojects
TotalProgram Services
Suppor
ting Services:
Labor
M anagem entand general
Post
a gea
n d supplies
TotalSupp
o rting Services
N etA sset
s atBeginning ofYear
$
N etAssetsatEnd ofYear
Theaccom pa
n ying notesarean integralpartofthisst
a tem ent.
4
37,599 $
$
37,599
L O U ISIA N A PU R C H A SE ZO O L O G IC A L SO C IE T Y
STA TEM EN T O F C A SH FLO W S
D E C EM B ER 31,2003
Cash Flow s From O perating Activities
Receipts From Supportand Revenues
M em bers
G rants
Donations
Progr
a m Incom e
InterestIncom e
TotalReceipts From Suppor
t and Revenues
10,685
80,000
37,393
31,249
4,135
45,314
187
208.963
Paym ents ForPr
o gram Services
Louisiana Purchase Exhibit
Pr
o gram Expenses
(172,070)
(19,980)
Gif
ts Shop Revenues (Net)
BirthdayPar
ties (Net)
(7,138)
Zoo Projects
(199,188)
Tot
a lPaym ents ForProgram Services
Paym ents ForSupporting Ser
v ices
Laborand Benef
its
M anagem entand G eneral
Post
a ge and Supplies
TotalPaym ents ForSuppor
ting Ser
v ices
(56,272)
(6,010)
(2,672)
(64,954)
NetCash Used by O perating Activities
Net Decrease in Cash
(55,179)
Cash at Beginning ofYear
90.720
Cash at End ofYear
Reconciliation of Decrease in NetAssets to NetCash Used by O perating Activities:
O perating Activities:
Decrease in NetAsset
s
(50,586)
Adjustm ents to Reconcile Decrease in NetAssets to NetCash Used by Operating Activities
(2,5oo)
(6,500)
AccountRec
e ivable
Inventory
Accounts Payable
PayrollTaxes Payable
5,041
(634)
(4,593)
NetCash Used by O perating Activities
The accom panying notes are an integralpartofthis statem ent.
$
(55,179)
LO U ISIA N A PUR CH A SE ZO O LO G IC AL SO CIETY
N O TE S TO THE FIN AN CIA L STA TE M EN TS
Y EA R END E D D E C EM B E R 31,2003
O R G A NIZA TIO N
The Louisiana Purchase Zoological Society (the Societ
y ) is a not-for-prof
it
corporation t
h atis m ade up of volunteers a
n d citizens from the M onroe/W est M on
r oe
com m unities that are interested in prom oting t
h e Louisiana Purchase G ardens & Zoo
in M onroe, Louisia
n a. Its objectives a
r e seeking solutions to zoo problems,
establishing service program s for t
h e prom otion and enhancem ent of the zoo, and
assisting in the developm entof new im provem ents or rehabilit
a tion of exhibit
s fort
he
zoo. The Societ
y der
ivesits revenue from m em berships,t
h em a
n aging oft
h e zoo git~
shop a
n df
r om var
i ous eventsheld att
h e zoo dur
ing t
h e yea
r.
N ote 1 - SU M M AR Y O F SIG N IFIC A NT A CC O UN TIN G PO LIC IES
A . BA SIS O F A C CO UN T IN G
h ef
T
inancialst
a tem entsoft
h e Societ
y have been perform ed on t
h e accrualbasis.
The signif
i cant accou
n ting policies follow ed by t
h e Society are descr
i bed below
to enha
n ce t
h e usefulness oft
h ef
ina
n cia
l st
a tem ents to the reader.
B. U SE O F ESTIM A TE S
The prepa
r ation of fi
n ancia
l st
a tem ents in conform it
y w ith genera
l ly accepted
accounti
n g pr
i nciples requires m a
n agem ent to m ake estim ates a
nda
s sum pt
ions
that af
f ect certain reported a
m ou
n ts and disclosures. A ccordingly,actual results
could diferfrom t
h ose estim ates.
C . INV ENTO RY
Inventory is st
a ted atthe low er of cost or m a
r ket using the f
irst-in a
ndf
irst-out
(FIFO)met
h od ofva
luation.
D. PRO PERTY A
N D EQ UIPM ENT
Allproperty and equipm entthatis used by the Societ
y is owned by t
h e Cit
y of
M onroe. T
h e Society does notpay renton these item s.
E. N ET A SSETS
T e unrestr
h
i cted-undesignated net assets represent t
h e surplus accu
m ulated over
h e course of t
t
h e Society's existence. Inc
o mef
r om restr
i cted sources w h
i ch is
received dur
ing the f
iscalyea
r a
n d for w h
i ch the restr
i ctions are satisf
i ed w ithin
h e sam e f
t
i sca
l yea
r ,is represented i
n t
h e changes in unrestricted a
s set
s.
LO U ISIA NA PU R C IIA SE ZO O LO G IC A L SO C IETY
N O TE S TO TIlE FIN A N CIA L STA TEM EN TS
Y EA R EN D E D D E C EM BER 31,2003
The tem porarily restricted net assets representcontributions from individuals and
com panies for use by the Society in its bicentennialcelebration of the Louisiana
Purchase. A s the Society expended these funds, these restrictions have been
released.
F. STA T EM EN T O F C A SH FL O W S
For purposes of the statem ent of cash f
low s, the Society considers all highly
liquid debt instrum ents w ith an or
i ginal m aturity of three m onths or less to be
c~sb equivalents.
G . BASIS O F PRESENTA TIO N
Contr
i butions received by the Society are recorded as unrestricted, tem porarily
restricted or perm anently restricted support depending on t
h e existence and/or
nature of a
n y donor restrictions. The Society reports inform ation regarding its
fna
i
n cial position and activities according to three classes of net assets:
m ~restricted netassets,tenaporarily restricted netassets and perm a
n ently restricted
assets. The Society did not have any tem porarily restricted net assets or
perm anently restricted assetsatD ecem ber31,2003.
H . TAX STA TU S
The Society believed t
h at its status had been perm anently established as being
exemptti-om Federalincom e taxespursua
n tto Section 501(c)(3)oft
h e Internal
Revenue Code. N o provision forincom e taxeshas been m ade.
H ow ever, t
h e lm em al Revenue Service recently advised the Society that the
advance r
u ling by t
h e 1RS rega
r ding t
h e Society's tax exem pt status ended in
August of 1985. The IR S has requested that the Society f
ixm ish inform ation for
the years ended D ecem ber 31, 1999 to D ecem ber 31,2003,in orderto reestablish
an adva
n ce ruling per
i od.
N ote 2 - CO NV ERSIO N FR O M M O D IFIED CA SH BA SIS TO A C CR UA L BA SIS
During 2003, the Society obtained a gra
n t from one IoeaI governm ent agency for
$75,000 and anot
h er grant from the State of Louisiana for $7,500. T
h is level of
im ding required the Society to change its basis of accounting from the m odif
f
i ed cash
basisto the accr
u alba
s is.
Under the m odif
ied cash basis utilized in 2002, the Society recorded all inventor,
purchases as cost of sales instead of recording the pu
r chases a
s invento~ a
n d
expensing it to cost of sales as var
ious inventor)"item s w ere sold. A s a result,the
L O U ISIA N A PU R C IIA SE ZO O LO G IC A L SO C IET Y
N O T E S TO T H E FIN A N C IAL ST A T EM E N TS
Y EA R EN D ED D EC EM BE R 31,2003
D ecem ber 31, 2002 inventory value is unknow n. This basis of accounting change
im pacts 2003 by the begim aing neta
s sets and the costof sales both being understated
by an unknow n am ount.
Luffey
H uffm a n
& M onro e
Francis I.Huf
fm an,CPA
L,Fred Monroe,CPA
EstherAtteberry,CPA
(A Proloss}onOlAccountlng Corporation)
C ER TIFIE D P U B LIC A C C O U N TA N TS
IN D EPEN D ENT A U DITO R S 'R EPO RT O N C O M PLIA N C E A N D O N
INTERNA L C O NTRO L OV ER FINA NC IAL REPO RTING BASED O N AN A U DIT
O F FINA NC IA L STATEM ENTS PERFO R M ED IN A C C O R DA NC E W ITH
G O VER N M EN T A UDITIN G S TA N DA R D S
B oard of D irectors
Louisiana Purchase ZoologicalSociety
W e have audited the f
inancial statem ents of the Louisiana Purchase Zoological
Society (the Society) as of and for the year ended December 31,2003,and have
issued our report thereon dated A pril 12,2004.W e conducted our audit in accordance
w ith auditing standards generally accepted in the U nited States of A m erica; the
standards applicable to f
inancialaudits contained in G overnm entA uditing Standards,
issued by the C om ptroller G eneral of the U nited States; and the Louisiana
G over
n m ental A udit G uide, issued by the Society of Louisiana C er
tif
ied Public
Accountants and the Louisiana Legislative A uditor.
C om pliance
A s par
t of obtaining reasonable assurance about w hether the Society's f
inancial
statem ents ar
e free ofm aterialm isstatem ent,w e perform ed tests of its com pliance w ith
cer
tain provisions of laws,r
e gulations,contracts and gr
a nts,noncom pliance w ith w hich
could have a dir
e ct and m aterial ef
fect on the determ ination of financial statem ent
am ounts. H ow ever,providing an opinion on com plianc
e w ith those pr
e visions w as not
an objective of our audit and,accordingly,we do notexpress such an opinion.The
r sults of our tests disclosed no instances of noncom pliance that ar
e
e required to be
repor
ted underG over
n m entA uditing Standards.
InternalC ontrolover FinancialReporting
In planning and perfor
m ing ouraudit,w e considered the Society's internalcontrolover
financial r
e por
ting in order to determ ine our auditing procedures for the purpose of
expressing ouropinion on the f
inancialstatem ents and notto provide assuranc
e on the
internalcontroloverf
inancialrepor
ting.How ever,w e noted c
e r
tain m atters involving the
internal control over f
inancial repor
ting and its oper
a tion that w e consider to be
repor
table conditions. Repor
table conditions involve m at
ter
s com ing to our attention
relating to signif
icant deficiencies in the design or operation ofthe internalcontrolover
inancialreporting that,in ourjudgment,could adver
f
s ely af
fectthe Societ
y 's ability to
record,process,sum m arize,and repor
tf
inancialdata consistentw ith the asser
tions of
m anagem ent in the f
inancialstatem ents. The repor
table conditions are described in the
accom panying Schedule ofFindings as item s 03-01 to 03-05.
(318)387-2672 ~ FAX (318)322-8866 * w w w .lhm -cpas,com
1100 N 18B'ST ~ PO Box 4745 ~ M onroe LA 71211-4745
MEMBERSOFTHEAMEPlCANINSTITUIEOFCERTIFIEDPUBLICACCOUNIANTS
Pase 9
B oard of D irectors
Louisiana Purchase ZoologicalSociety
A m aterialw eakness is a condition in w hich the design or operation of one or m ore of
the internalcontrolcom ponents does not reduce to a relatively low levelthe risk 'that
m isstatem ents in am ounts thatw ould be m aterialin relation to the f
inancialstatem ents
being audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the
norm alc
o urse ofperform ing theirassigned functions. O urc
o nsideration ofthe internal
controloverf
inancialreporting would notnec
e ssarily disclose allm atters in the internal
contr
o l that m ight be repor
table conditions that are also considered to be m aterial
w eaknesses. H ow ever,w e consider the item s listed in the pr
e ceding par
a gr
a ph to be
m aterialw eaknesses.
This repor
t is intended for the inform ation of m anagem ent of the Society, entities
granting funds to the Societ
y and the Legislative Auditorforthe state ofLouisiana and is
notintended to be and should notbe used by anyone otherthan these specif
ied parties.
Under Louisiana Revise
d Statute 24:513, this repor
t is distr
ibuted by the Legislative
A uditoras a public docum ent.
(A ProfessionalAccounting Corporation)
A pril12,2004
10
LO U ISIA NA PUR C H A SE ZO O LO G ICA L SO C IETY
M O NR O E ,L O U ISIA N A
SC H ED U LE O F FIN D IN G S
FO R THE YE A R EN D ED D EC EM BER 31,2003
03-01 INVE N TO R Y
F inding:
Dur
ing 2003,the Society received in excess of $25,000 i
n local or state funds requiring their
D ecem ber 31,2003 f'
m ancialstatem ents to be audited in accordance w it
h Governm entA uditing
Standards.In t
h e past,t
h e Society m aintained its books on the m odified cash ba
s is a
n dt
h erefore
did not record inventory. Governm ent A uditing Standards require f
ina
n cial statem ents to be
prepared in accordance w it
h generally accepted accounting pr
incipals.
The Society did not take a physical inventory at D ecem ber 31, 2003 or 2002. A physical
n ventor
i
y atret
a ilw a
s taken during N ovem ber2003.H ow ever,additiona
l salesw ere m ade after
h e N ovem ber 2003 inventory.This resulted in t
t
h e need for additionalprocedu
r es in arriving at
h equa
t
n tit
ya
n d costatDecem ber31,2003.
R ecom m endation:
The Society should take a physical inventory at cost at t
h e end of each ca
l endar yea
r . This
physicalinventory should be observed by t
h e Society's auditor.
M anagem ent's CorrectiveA ction Plan:
The Societ
y plans to take a physica
li
n ventor
y atcostatt
h e end ofeach f
iscalyear.T
h e Society's
auditor w ill be inform ed of t
h e date of t
h e taking of t
h e inventor
y a
n d invited to attend for
purposes of observat
ion.A ddit
ional inventor
y counts a
n d valuations w ill be taken during t
he
year,a
s has been the practice in the pa
s t,how ever,allva
l uations goi
n g forw a
r d w illbe ba
s ed on
actualcost.
03-02 PRIO R YE A R A DJU STIN G JO UR N A L EN TRIES N O T R EC O R D ED
F inding:
O ne of t
h e entries recorded in preparing t
h e D ecem ber 31, 2002 c
o m pilation report w as not
booked by t
h e Society. Asa result,a
n entry for$1,153,had to be m ade t
o correctthe netassets
at t
h e beginning of t
h e yea
r. T
h is caused the Societ
y 's m onthly fm a
n cial st
a tem ents issued
during 2003 to be i
n correct.
R ecom m endation:
A llyear-end entriesshould be booked on t
h e Societ
y 'sgeneralledger
M anagem ent's CorrectiveA ction Plan:
h efa
T
ilu
r etobook apr
ioryea
r adjusting entry wa
s notintent
iona
l.
l l yea
A
r -end entr
ies w ill be booked to the Societ
y 's general ledger. Societ
y staf
f ha
s been
instructed to m ake t
h ese correcting entries.
LO U ISIA N A PU R C H A SE ZO O L O G IC A L SO C IE TY
M O N R O E ,LO UISIA N A
SC H ED ULE O F FIN D IN G S
FO R TH E Y EA R END ED DEC EM BER 31,2003
03-03 R E C O R D IN G O F TR A N SA C T IO N S TO NE T A SSE T S
F inding:
The Society recorded three transactions totaling $13,170 to Unrestricted N et A ssets,accounts
3000 (Fu
n d Ba
la
n ce-Unrestricted) a
n d 3100 (Increase in Net Assets),during 2003. These
transactions should have been posted to revenue accou
n ts. This caused revenue and support to
be understated in the m onthly f
inancialreports presented to the board.
R ecom m endation:
The Society should notrecord a
n y activity to t
h e net a
s sets accou
n t,but should run all activity
through revenue and expense accou
n ts.
Also,one ofthe two accou
n ts (3000 or 3100) should be rem oved from the chartof accounts.
O nly one accou
n tisneeded to m aintain U n
r estr
i cted N etA ssets.
M anagem ent's CorrectiveA ction Plan:
The recording ofthree tra
n saction
s to t
h e netassets accou
n tw a
s a hum a
n error. Such recording
is notour norm alpractice. M a
n agem entunderstands t
h atsuch recording w illinac
cu
r ately ref
lect
ourfi
na
n cialposition and operati
n g results. The errors resulted from three factors. The f
irstw as
h e factthat att
t
h e tim e oft
h e er ors,the Society w a
s in t
r ansition in ouradm inist
r ative a
s sistant
posit
ion. T
h is position is one of only tw o nearly full-t
im e positions for t
h e Society. A new
person had been hired a
n d on t
h ejob foronly a shor
t time wit
h limited t
raining in t
h e bookkeeping function. Second, the Society w as in transition in m oving its operating checking
accounts from one bank to a
n other. A transfer of funds betw een accou
n ts occurred atthis tim e
h at equa
t
l ed one of t
h e eroneous entries. Third, this ent
ry occurred just subsequent to
conclusion ofone oft
h e biggestannualevents oft
h e Society. T
h e er
r oneous entries fort
h e m ost
part ref
l ected funds received f
r om t
h at event. The com bi
n ation of a new em ployee, t
h e high
activit
y levelofamajoreventand thecoincidentalcha
n gingofbanksallcontributed to theerror.
h e Society plans to run all future act
T
ivit
y through t
h e revenue a
n d expen
s e accou
n ts a
s is
obviously appropriate.
h e Societ
T
y pla
n sto rem ove eit
h eraccount#3000 oraccou
n t#3100 f
rom the chartofaccou
n ts.
As a note of information,t
h e Societ
y throug
h t
h e course of t
h e yea
r did remove nu
m erous
duplicated accou
n tswhich previously existed.
12
L O U ISIAN A PUR C H A SE ZO O LO G IC AL SO C IE TY
M O N R O E,L O U ISIA N A
SCH ED ULE O F FIND IN G S
FO R TH E YE AR EN D ED D EC EM B ER 31,2003
03-04 PRENUM BERED RECEIPTS
F inding:
G ir
l shop revenues are accountable by use of the cash register w hich are deposited atthe end of
the day and can be traced back to the cash register tape. O utside of the giftshop operation,
prenum bered receipts for other m onies received are not regula
r ly issued. Therefore, it is not
possible to a
c countfor allf
inancialactivity by tracing from t
h e init
ia
l receiptof t
h et
r ansact
ion
to itsdepositinto the bank account.
R ecom m endation:
The Societ
y should use prenum bered receiptsto accou
n tfor its f
ina
n cia
l activity (cash,checks
n d creditcards) outside of t
a
h e gif
t shop. The receipt should indicate t
h e person paying,the
purpose forthe paym ent,t
h e am ountofthe paym entand t
h e m ethod ofpay
m ent. This addit
ional
procedure willstrengthen t
h e Society's controloverreceipts
M anagem ent's Corrective A ction Plan:
Revenues, ot
h er tha
n check register tra
n sactions, such a
s m em bership dues,birthday parties,
donations,etc.,are now entered into a duplicate receiptbook w it
h the custom erreceiving a copy.
This accounts for alltransaction
s thathave taken place t
h atday.
03-05 SEG RE G A TIO N O F D U TIES
F inding:
The adm inistrat
ive of
i cerisresponsible foroverseeing t
f
h e daily operat
ionsofthe Societ
y . One
of t
h ose duties includes preparing checks for signature by one oft
h et
h ree board m em bers t
h at
have check signing authorit
y . The adm inistrative of
i ceralso receivest
f
h e savings and checking
accountbank statem ents,open
s t
h em and reconciles t
h em to the genera
l ledger. Segregation of
duties should include a sepa
r ation oft
h e check preparation a
n d check reconciliation processes.
R ecom m
e ndation:
W erecomm end thataboa
r d memberinitially receivethe u
n opened bank st
a tements(savingsand
checking)a
n d review allitem st
h atcleared fort
h eirproprietary. Thisadd
i tiona
l procedure w
i ll
st
rengthen the Societ
y 'scontroloverdisbursem ents.
M anagem
e nt'
s CorrectiveA ction Plan:
A s President, I, Tyler Thom as, open a
l l statem ents and f
ina
n cial docum ents before allow ing
adm inist
rat
ive assistant and cont
racted accounting em ployees to reconcile. The f
inancia
l
st
a tem ents are t
h en inspected atlea
s tonce m onthly.
13