prince hall grand chapter order of the eastern star, rite of adoption hawaii and it’s jurisdiction...

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PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTION

HAWAII AND IT’S JURISDICTION INC.

Presented byCherrieann D. Diaz

Grand Auditor

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Basic Audit Procedures for All Chapters

Audit Committee Requires Three Chapter Members

Appointed Annually by the Worthy Matron

Beneficial if one member is retained from prior year for continuity

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Audit Committee Shall Audits all books and records of Treasurer

Audit all books and records of Secretary

Audit all fund raising committees handling chapter funds

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Audit Committee Shall Report findings and make applicable

recommendations to the chapter

Analyze funds due to the chapter, such as; membership dues, ticket sales, and fines

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Audit Procedures Must be in accordance with the Constitution and

By-Laws of the Prince Hall Grand Chapter, Order of the Eastern Star, Rite of Adoption, Hawaii and it’s Jurisdiction, Inc.

Chapter books must be audited twice each year

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Audit Procedures Audit should commence at the close of the May

and November meetings

Report of the Audit Committee must be in writing Report given in June and December (before

elections of officers in the December meeting)

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Purpose of an Audit To ensure the polices and guidelines are being met

Identify any discrepancies Ensure proper corrective actions are taken in a

timely manner

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Guidelines for Auditing Have entrance Meeting with Secretary and

Treasurer

Outline audit plans and procedures to be used during the audit

Provides officers an opportunity to explain any known discrepancies or new processing procedures

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Guidelines for Auditing Review the auditing checklist to ensure all records

have been turned over to Audit Committee

Note any discrepancies and or incomplete data prior to starting the audit

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Records required from Treasurer Receipt book

Treasurer receives from Secretary all funds turned in to the chapter

Treasurer gives Secretary a receipt at the end of each meeting or when Secretary gives Treasurer any funds

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Records required from Treasurer

Treasurer receives monies from fund raising committees, if Secretary is not available

Treasurer gives Secretary a receipt to ensure timely deposit and safeguard of funds

Treasurer must have a separate receipt book if receiving monies from fund raising committees

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Deposit Slips

All funds must be deposited in the chapter account within 72 hours in designated bank

Duplicate copies of the deposit slips and or bank deposit receipts are given to Secretary

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Drafts/Warrants/Vouchers

Are supporting documents used to ensure a true and accurate account?

Shows all monies paid out on behalf of the chapter

Funds are paid out “only” upon a vote of the chapter and after a proper draft

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Drafts/Warrants/Vouchers

Warrant or Voucher have been properly signed by Secretary and countersigned by Worthy Matron

Warrant and Voucher should be maintained in numerical order

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Check Book Cancelled checks should be attached to the

check stubs in check book or numerical order in a file case

If checks are not returned by bank; keep all bank statements on file with copies of checks

Bank statements are used to reconcile books/balances with bank statements

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Record Book/Computer Ledger/Journal Postings should include a true and accurate

account of all monies received

All monies paid out

All bank entries like interest or bank charges

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Record Computer Ledger/Journal Records must include

Balance brought forward Receipts

Deposits and interest Disbursements

Payee, Date Drawn, Check Number, and amount

Credits back and returned checks

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Record Computer Ledger/Journal Records must include

Ending balance

Bank reconciliation

Earmarked funds

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Bank Statements

Should be balanced with books immediately upon receipt

Statements should be maintained for historical purposes

Statements should be presented as part of audit records

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Income Tax Annual Electronic Notice

All chapters are required to file form 990-N e-postcard on May 15th of each year

Treasurer maintains copy of the receipt which shows date Form 990-N filed with IRS

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Records required from Secretary

Members ledger and binder with membership ledger sheets on each member

Roster with up to date listing of all members

Receipt Book written in duplicate. Original to member, copy kept in receipt book

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Treasurer’s receipts kept in folder or some type of file in date order

Draft/Warrant/Voucher

Document written for each disbursement upon a vote of the chapter

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Draft/Warrant/Voucher

Treasurer writes check and keeps original warrant

Secretary keeps stubs of the warrant or disbursement order

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Journal – Cash ledger book to list monthly activity Receipts and disbursements Items reflected on bank statements Interest and bank charges Earmarked funds

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Minute Book – a bound record book in which minutes are recorded for regular and special meetings

Reports – Election, Annual returns, Audit, Annual Membership, all reports with supporting documentation from committees handling funds

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Bonding – Documentation showing all fiscal officers are bonded in accordance with the Constitution and By-Laws of Prince Hall Grand Chapter, Order of the Eastern Star, Rite of Adoption, Hawaii and its Jurisdictions Inc.

Tax Exempt Status from IRS

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Inventory List – Detail list of all items/paraphernalia belonging to the Chapter.

Exit Meeting – Worthy Matron, Secretary and Treasurer are given opportunity to respond prior to final report to chapter

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Examples of Improprieties Required signatures not on checks Bank Statement not reconciled Missing member ledger sheet Bank deposit receipts maintained by Secretary and not

Treasurer (both should get a copy) Interest or bank charges not shown in Secretary report

(Treasurer did not pass information on) Returned checks not shown on Secretary records (Treasurer did

not pass this information on)

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QUESTIONS

prince hall grand chapter order of the eastern star, rite of adoption hawaii and it’s jurisdiction...

Documents

basic audit procedures

chapters audit committee

eastern star

rite of adoption hawaii

chapter treasurer

chapter funds

chapter books

records of secretary