By Jane Durment
I am pleased to provide the following Audit Committee Report. Ritz Holman, a Milwaukee area CPA Firm, was engaged to perform a review of SSYC’s Financial Statements for Year End Dec 31, 2013. The review has been completed with very good results.
The Audit Committee, comprised of Dick Hobbs, Art Michel, and myself, Jane Durment, completed a competitive selection process last year, and selected Ritz Holman for our 2012 and 2013 reviews. Andy Holman, Partner at Ritz Holman, specializes in non-profits, and came highly recommended by other non-profits. Their pricing was competitive with the review at $5,900 and testing at $3,000. The review process was conducted in accordance with “Statements on Standards for Accounting and Review Services” which are issued by the American Institute of Certified Public Accountants. Those standards require the CPA to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. The process ties out our Balance Sheet. Our Balance Sheet accounts include cash, bank accounts, accounts receivable, fixed assets, accounts payable, prepaid dues, prepaid slip fees and the construction loan. Ritz Holman looked at our material sources of revenue and expenses. With our detail transactions from 2013, they rebuilt to our year end balances.
Ritz Holman recommended a set of adjusting journal entries to bring our Financial Statements into conformity with GAAP (Generally Accepted Accounting Principles), including depreciation, capitalization and loan payment application to our balance sheet to reduce our Liability. With the application of these journal entries, Ritz Holman expressed a conclusion that there are no material modifications that should be made to the Reviewed Financial Statements in order for them to be in conformity with GAAP. This is the positive result we are looking for.
Ritz Holman also performed testing of our internal controls, with heavy emphasis placed in the highest risk areas of cash sales (bar and restaurant sales), as well as testing in payroll. Testing includes identifying a stastical sampling of transactions, and following those transactions all the way from the point of sale system to the accounting system to the bank. Ritz Holman indicated that SSYC staff has been successful in improving procedures and controls in the day to day work that they perform. Good checks and balances have been put in place. Segregation of duties is good. Ritz Holman has recommended additional steps to further improve procedures and controls in the areas of daily close out and monthly bank reconcillation. The SSYC Treasurer and Staff have a plan in place to implement those recommendations in 2014.
The Ritz Holman’s full report including the Reviewed Financial Statements is available to members in the office.