Auditing Committee

It is the duty of this Committee to examine the records kept by the Treasurer of the Association and report to the Board of Directors at the spring meeting. The Committee audits the books for the period ending December 31 of the previous year.

There will be an audit of the Treasurer's books annually in the first quarter following the annual convention. If the Treasurer resigns, an audit will be done immediately. The Executive Board may call for an audit at anytime if it is deemed necessary.

Audit Procedures

  1. The Treasurer should turn over the books and files to the Auditing Committee within the first quarter or as soon as the entries for the previous year have been closed.

  2. The Auditing Committee should prepare to meet as soon as possible in February to perform the audit and to prepare a written report to be presented at the spring NLA Board meeting.

  3. The books should be checked to verify each receipt of income. There should be a bank deposit slip and/or a bank receipt and a notation as to the source of the income. Each should be checked to see that the correct amount was entered in the proper itemized columns.

  4. Each expenditure should be checked to verify the payment. There should be an expense reimbursement form for each payment with the proper receipts attached. Each payment should be checked to see that the correct amount was entered in the proper itemized column.

  5. The interest earned on the savings account should be entered in the Treasurer's book first as income and then as payment to the account. Separate pages are maintained to show receipts, payments, and balance for these accounts. Bank statements and end-of-year statements of interest earned should be used to verify the amounts posted.

  6. The interest earned on the certificates of deposit is recorded as income and is left in the general fund. A record of the interest should also be posted to the separate page maintained to show the interest accrued. Bank statement and end-of-year statements of interest earned should be used to verify the amounts.

  7. Bank statements for the general fund checking account should be checked to verify the account balance.

  8. Discrepancies in any of the accounts should be noted in the Audit Report.