Can the Treasurer Serve on the Audit Committee?

Following is a transcript of this episode of the Two Minute Treasurer’s Tip Podcast from MoneyMinder, with audio/video below.

Welcome to the Two Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel and today’s topic is the annual audit, sometimes referred to as a financial review.

Elija writes: I’m the treasurer of my PTA and am told I can’t participate in the audit. Why not?

Good question. There’s generally a hard and fast rule that no person with check signing authority on your group’s accounts can participate on the audit or financial review committee.

The purpose of an audit or financial review is “to provide reasonable assurance that your group’s financial statements are free of material misstatement and are prepared according to Generally Accepted Accounting Principles.” An audit with a “clean” opinion assures the membership that all resources are properly accounted for and managed within the regulations.

Clean means it’s conducted by neutral parties. Not people who have been managing & tracking the funds and preparing the reports all year.

Your role in the audit is to provide your committee with the necessary documents, reports, invoices, bank statements, etc., so they can review and compare.

And I can’t stress enough. An audit does not mean anyone has done anything wrong. It’s simply an oversight procedure to ensure accuracy.

Thanks for listening today. My name is Cyndi Meuchel, and this is your Two Minute Treasurer’s Tip.