semiannual council audit report # · pdf filewhy • verify additions and changes in...
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Semiannual Council Audit Report #1295
Why
• Verify additions and changes in council membership status.
• Assures that all financial transactions are properly handled andthe money is accounted for and in safekeeping.
• Maintains $5,000 bond on FS and Treasurer
• Verify additions and changes in council membership status.
• Assures that all financial transactions are properly handled andthe money is accounted for and in safekeeping.
• Maintains $5,000 bond on FS and Treasurer
• January through June due August 15th• January through June due August 15th
When• January through June due August 15th
• July through December due February 15th
• January through June due August 15th
• July through December due February 15th
Who
• Grand Knight and Trustees
• Financial Secretary, Treasurer and Recorder provide informationand make themselves available to answer questions.
• Grand Knight and Trustees
• Financial Secretary, Treasurer and Recorder provide informationand make themselves available to answer questions.
GK• Grand Knight’s Responsibility• Grand Knight’s Responsibility
• Calls meeting of Trustees to conduct audit of councilbooks and records as well as verify compliance with
• Calls meeting of Trustees to conduct audit of councilbooks and records as well as verify compliance with
Schedulebooks and records as well as verify compliance withproper accounting procedures.books and records as well as verify compliance withproper accounting procedures.
Takesactive part
• Takes an active role in the review of all council records.
• Takes the lead in sharing any findings with the FS andTreasurer and provides constructive feedback.
• Takes an active role in the review of all council records.
• Takes the lead in sharing any findings with the FS andTreasurer and provides constructive feedback.
Trustees• Trustee Responsibilities• Trustee Responsibilities
• Take an active role in the review of all councilrecords.
• Take an active role in the review of all councilrecords.
ActiveRole
records.
• Takes his responsibility as trustee very seriously
records.
• Takes his responsibility as trustee very seriously
Givesreport
• Gives brief report on audit findings at the nextbusiness meeting.
• Gives brief report on audit findings at the nextbusiness meeting.
FS• Financial Secretary Responsibilities• Financial Secretary Responsibilities
• Provides financial records and reports to GrandKnight and trustees for audit review.
• Provides financial records and reports to GrandKnight and trustees for audit review.
Providesrecords
Knight and trustees for audit review.
• Does not participate in the actual audit
Knight and trustees for audit review.
• Does not participate in the actual audit
Avail-ability
• Makes self available to answer questions andprovide additional information if requested
• Insists on timely completion of audit.
• Makes self available to answer questions andprovide additional information if requested
• Insists on timely completion of audit.
Trea-sure
• Treasurer’s Responsibilities• Treasurer’s Responsibilities
• Provides financial records , receipts, bankstatements and reports.
• Provides financial records , receipts, bankstatements and reports.
Providesrecords
statements and reports.
• Does not participate in the actual audit
statements and reports.
• Does not participate in the actual audit
Avail-ability
• Makes self available to answer questions andprovide additional information if requested
• Makes self available to answer questions andprovide additional information if requested
Recorder
• Recorder’s Responsibilities• Recorder’s Responsibilities
• Provides the minutes book for review by thetrustees. Used to verify payment of all approved
• Provides the minutes book for review by thetrustees. Used to verify payment of all approved
Providesrecords
trustees. Used to verify payment of all approvedbills and donations.trustees. Used to verify payment of all approvedbills and donations.
Avail-ability
• Makes self available to answer questions andprovide additional information if requested
• Makes self available to answer questions andprovide additional information if requested
• Failure to conduct and submit two sequentialaudits may cause Financial Secretary andTreasurer to lose $5,000 bond.
• Failure to conduct and submit two sequentialaudits may cause Financial Secretary andTreasurer to lose $5,000 bond.
1. Failure of trustees to perform
2. Failure of trustees to perform
• Failure to conduct the audit or signing an auditcompleted by the Financial Secretary andTreasurer may cause loss of bonding.
• Failure to conduct the audit or signing an auditcompleted by the Financial Secretary andTreasurer may cause loss of bonding.
2. Failure of trustees to perform
• Uncertainty of accurate records and safekeeping ofcouncil funds.
• Uncertainty of accurate records and safekeeping ofcouncil funds.
3. Failure of trustees to perform
Reports, documents and records needed to conduct audit report:
- All monthly reports of member and financial transactions from theSupreme council, supply orders, invoices and billing reports issuedduring the reporting period.
- The minute book from the recorder for checking that all approvedexpenditures have been paid timely and accurately.
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- Bank statements showing deposits and dates, checks written and allwithdrawals.
- Financial secretary’s member records and the ledger of dues collectedand transferred to the treasurer.
- Receipts issued to the financial secretary from the treasurer for allfunds received.
- Record of investments, if council has investments and equipment.
Blank reports canbe found in theReport FormsHandbook #1436and on K of C Weband on K of C Website under councilforms. It can becompleted on lineat this site but notremitted.
Councils using Member Management/Member Billingapplications need not complete “Schedule A –Membership” since MM/MB records reflect thosemaintained at the Supreme Council office.
In these cases, “Using Member Management/MemberBilling” should be noted in this section.
If the council is not using MM/MB then proceed to thenext slide for audit preparation.
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Complete the date, council number, city and state on the top line.
This section of the audit reconciles the membership records maintained by thefinancial secretary and that reported by Supreme.
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Transfers from other councils:Financial Secretary’s reports andSupreme monthly reports.
Transfers-Assoc. to Insurance.Financial Secretary’s reports andFinancial Secretary’s reports andSupreme monthly reports.
Transfers-Ins. to AssociateFinancial Secretary’s reports andSupreme monthly reports.
Total Members Start of Period: SupremeReport to the Financial Secretary at end ofperiod. Also, same as number of membersend of period from last audit.
Initiations: Council count matches Supreme.
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Total for Period:Total all three columns
Minus Total Deductions:Get from deductions section ofthis audit.this audit.
Number Members End ofPeriod:From Total for Period minusTotal Deductions. Will also beStart of Period for the next audit.
Re-entries: Financial Secretary Reports andSupreme monthly reports
Withdrawals: Financial Secretaryrecords and Supreme monthlyreports
Transfers-Assoc. to Insurance:Financial Secretary records andSupreme monthly reports.Supreme monthly reports.
Transfers-Ins. To Associate:Financial Secretary records andSupreme monthly reports.
Suspensions: Financial Secretary recordsand Supreme monthly reports.
Deaths: Financial Secretary record andSupreme monthly reports
Total Deductions: Add all threecolumns. Also copy thesenumbers to the additions section,line entitled ‘Minus TotalDeductions’.
This completes section ScheduleA – Membership of the audit. Allrecords maintained by theFinancial Secretary and reportedby the Supreme Council shouldagree.
Transfers to Other Councils: FinancialSecretary records and Supreme monthlyreports.
This section of the audit accounts for all cash transactions during the period.The GK and trustees receive the books and records from the financial secretary,treasurer and the recorder to do the semiannual financial audit of the council.
The first part is the cash accounting review of the Financial Secretary and thesecond part is on the Treasurer.
Cash Received-Dues, Initiations:
A detailed record of all cashreceived for dues, initiations,special assessments etc, ismaintained by the FinancialSecretary. It is from theserecords and the comparison torecords and the comparison tothe total of all signed receiptsreceived from the treasurer forcash transferred to him thatprovide the amount for thisentry.
Cash on Hand Beginning of Period:
Copy amount of Cash on Hand at Endof Period found on previous audit atEnd of Period. It is common for thisamount to be zero or a small amount.
and cash from other sources.
Total Cash Received from OtherSources: Total all 3 columns.
Total Cash Received: Add beg.balance, cash received from dues etcand cash from other sources.
Paid to Treasurer: Equal to thePaid to Treasurer: Equal to theamount shown for cash received(line above) and is carried over tothe Treasurer’s section.
Cash on Hand End of Period: Isthe beginning balance for the nextaudit, but is oftentimes equal tozero. The amount if any, shouldbe minimal and the difference ofthe two lines above.
Cash received from other Sources: Seerecords maintained by financial secretary fortotal cash received during the period. Alsocheck receipts from the Treasurer for allcash transferred. These records must match.
Transfers from Savings/Investaccts: Any amounts transferredfrom savings and investmentaccounts to checking.
Interest Earned on Investments:Amount of interest earned on bankaccounts, savings and other
Cash on Hand Begin. Period: Amountfrom last audit shown as net balance onhand.
Received from Financial Secretary: Carryover the amount from Financial Secretarysection second last line “Paid to Treasurer”
accounts, savings and otherinvestments. Total amount for thesix month period. See bankstatement and investment reports.
Total receipts: Add 4 precedinglines to determine total receipts.
General Council Expenses:Total of all expenses paid to othersduring the period. Reconcile checkbook, bank statements and receipts.Use Member Billing System
Transfers to Sav. &Invest Accts:Total of all transferred amounts tosavings or investment accounts.
Disbursements:Per-Capita: Supreme Council: Record
all per capita payments made to theSupreme Council during the period.
Per-Capita: State Council: Record allper capita payments made to the StateCouncil during the period.
Miscellaneous: Amount paid thatdoes not fit in a previous category.
Total disbursements: Add above 5
lines to get total disbursements.
Net Balance on Hand: Totalreceipts less total disbursements.
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Cash:Undeposited funds - any money held
in possession of a member, not yetdeposited in the bank. Will usually bezero.
Bank – General – Acct. – Amount offunds the council has in its bankaccount for operations and
This section is for the council to showassets it owns.
account for operations anddisbursement. Will be equal toSchedule B, Net Balance on Hand.
- Special Account. – Council mayhave a special account earmarked forspecific purposes.
- Savings & Investment Acct. –Amount in savings or investments.Review reports of such funds.
Total Current Assets:Total above five lines: Includes cashand outstanding dues amount.
Less: Current Liabilities – Amountshown in liabilities section of this
Due from _____Members:
Show dues owed and payable. SeeFinancial Secretary’s records or MBreports. For further clarificationSee pg #44 of FS Handbook.
shown in liabilities section of thisform as Total current liabilities.
Net current assets: Current assetsminus current liabilities.
Real Estate: Value of land, buildingsetc, the council owns. Do not includeproperty of the corporation.
Furniture: Includes furniture suchas chairs, tables, entertainmentequipment, grills and cookingequipment, etc.
Investments: Show value ofphysical assets of the council. Ifextensive, show detail on backside of this report.
Stocks and Bonds: Show value of allstocks and bonds the council mayown at end of audit period. Checkinvestment advisor’s records forauthenticity and accuracy.
Total Investment: Total threeprevious lines.
Net investment Assets: TotalInvestment less investmentliabilities.
Total Assets: Sum of Net currentassets and net investment assets.
Where dollar amount is zero, insert
Less: Investment Liabilities: Showdebt obligations owing on councilinvestments. See bank or mortgagereports
Where dollar amount is zero, insert“0”.
Due Supreme Council: Amount ofper capita and Catholic advertisingowed Supreme. See FinancialSecretary reports for end of month.
Supplies: Amount owed Supreme forsupply purchases made by council.
This section is used for reportingcouncil liabilities and for GrandKnight and Trustee signatures.
supply purchases made by council.
Other: other miscellaneous moneyowed Supreme.
Due State Council: Amount of percapita and any obligatedassessments owed to the Statecouncil.
Misc Liabilities: Any outstandingbills not paid; obligations not yetmet.
Total Current Liabilities: Totalall lines above. Enter on asset ledgeras net current assets and completethe assets section.
Advance Payments by ___Members:Show dues amounts paid bymembers in advance of the currentperiod. The Financial Secretary willhave a record of these transactions.
Enter date audit was completed.Signatures of the Grand Knight andall Trustees are then affixed to thereport.
Mail copies to the Supreme –Councilaccounts, State Deputy, DistrictDeputy and place a copy in thecouncil file.
Congratulations!!!!!You have successfully completedthe council audit for this period!the council audit for this period!