Finance

AuditorWorkshop #201

Objectives

• Understand your job description and the importance of following it.

• Review and report the financial records within a Section/Area/Region to control the financial stability.

• Review and understand the recommended AYSO audit procedures.

2 . . .

Why do we need Auditors?

• AYSO is a single nonprofit organization.

• Certain financial standards must be followed to maintain this status.

• The assets of each Region belong to the entire organization.

• The liabilities of each Region belong to the entire organization.

3 . . .

Actual incidents within AYSO

• One Region could not pay all of their end of season expenses!

• One Regional Treasurer transferred $24,000 to his own account!

• One Region was missing $120,000 in cash!

• One Regional Commissioner took her family on a trip to Hawaii paid for with AYSO funds!

4

AYSO Financial Tools

• NAP – The National Accounting Program

• Outlined in Treasurer Manual• Most AYSO Treasurers do not have

financial backgrounds, so need to utilize the tools

• Finance Department at the National Office

5 . . .

Auditor Job Descriptions

• Regional Auditor• Area Auditor• Section Auditor• No National

Auditor – audit done by an independent Certified Public Accounting firm

6 . . .

Duties and Responsibilities• Perform annual “check-up” using

the questionnaire/checklist that we’ll review later – a spot check only.

• Review the Profit and Loss Statement periodically.

• May be asked to assist another Region.

• Must report to Section Director or National Office any large or unusual transactions.

7 . . .

Duties and Responsibilities (cont.)

• Verify internal control procedures are being followed regularly

• Review cancelled checks and bank deposits monthly

• Review reconciliation of accounts monthly

• Download Auditor Manual at www. aysotraining.org

8 . . .

Qualifications and Desired Skills

• Do not have to be financial professional

• AYSO Treasurer experience not required

• Treasurer course is required• Must be independent and

objective• Be honest and ethical• High level attention to detail

9 . . .

Restrictions

• Cannot be a voting Board Member.

• If previous Treasurer, cannot audit your own work.

• Immediate family members cannot be:

Regional Commissioner Treasurer Area Director Section Director10 . . .

Supervision

• Regional Auditor reports to the Regional Commissioner or above.

• Area Auditor reports to the Area Director or above.

• Section Auditor reports to the Section Director or the National Office.

• These could change if you suspect improprieties.

11 . . .

Training andTime Commitment

• Orientation by RC (or AD if Area Auditor)

• Certification course – Safe Haven®

• Treasurer Workshop REQUIRED• Any Auditor, Treasurer or Financial

Annual updates when offered• Time Commitment:

Periodically – 1 hour or so per month Annually – About 4 to 6 hours

12 . . .

Reference Materials

• Treasurer Manual• Auditor Manual• Reference Book

The Standard Regional Guidelines, Article Eight

Chapter 8, Regional Operations of the AYSO Reference Book

National Policy Statement 3.1

13 . . .

It’s Audit Time!

• Where do I start?• When do I perform the audit?• Who is included in my audit?• How do I go about it?• What do I do if I need help?

14 . . .

Where do I start?

• Notify the Treasurer of your audit plan and when you would like to begin.

• Send a Request for Documents Memo to the Treasurer unless your Region participates in NAP Online.

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When do I perform the audit?

• Perform the audit sometime after the end of the fiscal year (June 30). Sometime in August is recommended.

• Also, additional audits may be required because of a change in Executive Member RC (AD) or Treasurer.

16 . . .

Who is included during my audit?

• Treasurer – possibly• Registrar – possibly• RC (or AD) – possibly

If you have NAP Online, face-to-face meetings may not be necessary.

17 . . .

How do I go about it?• Use the checklist…

Fillable Excel file found under the Auditor page on www.ayso.org

One checklist for Regions, another for Areas and another for Sections

Each step detailed out for your convenience

Final copy submitted to National Office and Section Auditor after Area Director signature

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19

Note any issues

20

How do I go about it?

• Use the checklist to analyze: General items Cash receipts Cash disbursements

• Never accuse a volunteer• Stay positive – Focus on

areas for improvement and strengths

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Spot Check Only• As you review documents provided

in the upcoming activity – your team will look specifically for:

Out of sequence or missing checksChecks made out to cash or large or unusual

check amountsTwo signatures on checksBeginning and ending balancesNo checks written on statements and

invoice pairings with processed checksNo credit card statementsWhat else?

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Activity

1) Choose spokesperson2) “Spot check” items for irregularities3) Complete audit form4) Complete summary5) Spokesperson has two minutes to

present report to entire class

23

What do I do if I need help?

• Contact your Area Auditor or Area Director.

• Contact your Section Auditor or Section Director.

• Contact the National Office.

24 . . .

Conclusions

• Understanding your job description ensures proper protocol is followed during audits.

• Reviewing and reporting the financial records within a Section/Area/Region controls the financial stability.

• Reviewing and understanding the recommended audit procedures supports AYSO’s future. Remember AYSO is one entity!25 . . .

Thank you for attending Financial Auditor

Please remember to also attend:

AYSO’s Safe Haven®

Treasurer TrainingeAYSO for Treasurers

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Workshop #201