Statement of DSD Audit Committee Report

Rob

Informations

• Publié par: Erni
• Nombre de lectures: 14
• Langue: English

Extrait

STATEMENT OF DSD AUDIT COMMITTEE

ACTIVITIES

1.

PURPOSE

– This statement was prepared at the request of DSD members to the Audit Committee for financial

information. There were also questions about proposed future expenditures to support local Rose Societies.

2.

SCOPE

–

Audit activities from 2003 through 2005.

The present Audit Committee has audited all funds of the DSD

annually during the audit activity period. The results of our audits of all the activities disclosed that all funds were

accounted for and that accounting records were reasonably accurate. Written audit reports were submitted at each

DSD Annual Business Meeting. Information and audit opinions are based on the results of those audits and by review

of the current Bylaws.

3.

CONCLUSIONS

–

a.

Director’s Fund – This fund is used for the general operating expenses of the DSD.

The money in this fund

belongs to the DSD and its members.

The DSD members have entrusted the District Director to be the manager

of this fund, with the assistance of the Treasurer, by virtue of election by DSD members. The District Director is

charged by the Bylaws to assure that expenditures from this fund are made only to accomplish the objectives of

the DSD and the ARS. The name of the fund is a misnomer. In accounting terms, a fund used for the general

expenses of an organization is generally named the “General Fund” or “Operating Fund”.

b.

Income to this fund consists of annual voluntary contributions by local societies

of $0.50 per member, for a

maximum of $50.00. The fund also receives 35 % of the net profit of DSD sponsored events such as DSD Rose

Shows and Conventions and Mid-winter Meetings. There may also be rare contributions to this fund from

individuals. The funds are used to pay the general operating expenses of the District Director, all other officers

and all DSD committees as provided in the present Bylaws. Expenses include office supplies, postage, District

Director travel, trophies, awards, etc. It should be noted that although the Bylaws authorize a $300.00 annual per

diem payment to the District Director, the incumbent has not claimed this allowance. The claim may legally be

made at the end of the current term.

c.

The balance in this fund on September 30

th

, 2003, immediately before the Incumbent District Director took office

was $10,613.18.

The fund cash balance on December 31

st

, 2005 was $15,664.15.

In addition, the DSD Bulletin

Fund owed the Director’s Fund $1,000.00. There were no outstanding bills to be paid by the fund.

d.

DSD Bulletin Fund – The fund cash balance on December 31

st

was $8,390.23. This fund owed the Director’s

Fund $1,000.00.

e.

DSD Garden Fund – The balance in this fund on December 31

st

, 2005 was zero. Money in the amount of $684.97

in the Director’s Fund was reserved for this fund.

AUDIT OPINION ON FINANCIAL ASSISTANCE TO LOCAL SOCIETIES

The question was asked as to whether or not some monies in the Director’s Fund could be used to assist local

societies in Education/Seminars/Materials.

The Director’s Fund has not been used during this committee’s tenure to

assist local societies with education/seminars/materials according to the records presently in the hands of the Audit

Committee.

In our opinion, such expenditures would be justified if approved by the District Director and the Budget and

Finance Committee. This opinion is based on Article VI, Section 4 C) 1 of the current Bylaws that authorizes all

expenditures by the District Director for expenses incurred in pursuance of their respective duties. In addition, the

objectives of the DSD,

as stated in Bylaw Article III, are to improve horticulture knowledge and to promote the

interest of the ARS members in the district by performing such services for them that are consistent with the

objectives and polices of ARS. One of the Director’s duties is to accomplish these objectives.

Accordingly, we would

not take exceptions to such payments in future audits provided all required approvals were obtained before payment.

Respectfully Submitted,

Forrest D. Hale. Sr

.

Forrest D. Hale, Sr., CIA, CISA

Chair, DSD Audit Committee

February 27, 2006