Vidyaranya Kannada Kuta Internal Audit Report for the year 2010

2010 Internal Audit Committee:

Shankar Hegde

Rajeev Kumar

Nitin Mangalwedhe

Shankar Hegde worked as the Lead Auditor for the audit team.

This is the final internal audit report of the VKK financial for the year 2010. The purpose of this report is to

summarize the items examined, discrepancies, if any, found, and make recommendations to future Treasurer.

A total of 3 periodic audits were conducted over the course of the year. The following table summarizes the three

audits:

Date Auditors in Attendance VKK Members in Attendance Events Audited

08/28/2010

Shankar Hegde

Rajeev Kumar

Nitin Mangalwedhe

Vinesh Ambekar (Treasurer)

Deepak Patel (Asst. Treasurer)

Prabhu Shiva (KKCFC)

Sankranti, Winter Olympiad,

Yugadi, Movie, and Picnic

KKCFC Fund-Raising Events

11/14/2010 Shankar Hegde Rajeev Kumar

Nitin Mangalwedhe

Vinesh Ambekar (Treasurer) Deepak Patel (Asst. Treasurer)

Ganesh Habba

01/23/2011 Shankar Hegde

Nitin Mangalwedhe

Vinesh Ambekar (Treasurer)

Deepavali

Overall for the entire year 2010

As a guide for conducting the audits systematically, the audit committee used an audit procedure developed by

Audit Committee in 2007. The procedure is based on the “Internal Audit Committee” clause of VKK Bylaws-2004

(Bylaw VII, Section 5).

Audit Procedure

Income

o Verified that collections from membership, standard events guest charges, special events collections &

sponsorships, Sangama & Dindima Advertisement collections are accounted for and deposited into

bank promptly.

Expenses

o Verified that each expense is supported with vouchers and receipts, and paid/reimbursed promptly.

Bank Accounts

o Examined bank statements (Chase Business Classic and High Yield Savings Account) for deposits and

checks tallying with income and expenses

o Verified that difference between the 2010 opening balance and closing balance tallies with 2010

surplus balance (taking into consideration 2009 expenses paid out in 2010, outstanding 2010 checks

and net deposits from 2011 transactions as of 1/23/2011)

For the year 2010, VKK generated $31,846.00 from the membership, standard and special events guest charges and

sponsorships, and Sangama and Dindima advertisement charges. The total expenses were $30,445.99 resulting in a

surplus of $1,400.01.

VKK Internal Audit Report 2010 Page 2 of 4

The KKCFC arranged two fund-raising events for the year 2010. The collections from the two events were

$10,277.80. The events expenses were $1,985.49 resulting in a net fund generated $8,292.31.

The two tables at the end summarize the VKK and KKCFC Income-Expenses for the year 2011 and Bank Accounts

opening and closing balance s as of the final audit date i.e. January 23, 2011.

The audit committee is happy to report that no significant discrepancies were observed in the accounts. During all

four audits, the account was up-to-date and kept in order. The VKK executive committee appears to be managing

the VKK financial responsibly and effectively. VKK Treasurer maintained the accounts using Microsoft Excel.

The Charitable Fund Committee account was maintained manually on papers. Since it was a small account with only

a handful of transactions, the manual method of account keeping did not pose any significant problem.

In conclusion, the auditors found that the VKK executive committee managed the VKK financial responsibly and

effectively.

We understand that VKK owns the QuickBooks accounting software. However, it was not being used. Use of

QuickBooks greatly helps to manage the account accurately and efficiently. It also significantly improves the audit

performance. The audit committee strongly recommends that future treasurers of VKK use QuickBooks or similar

accounting software to maintain accounts and produce reports.

The audit committee would like to thank the VKK members for giving us this opportunity to serve, and the executive committee for their help and support in conducting the audits.

Shankar Hegde

For VKK Internal Audit Committee-2010

April 30, 2011

VKK Internal Audit Report 2010 Page 3 of 4

VKK Income – Expense Summary for Year 2010

Event/Item Details Income Details Expense

Membership 17,470.00 Google Fees 152.50

General Expenses Insurance 305.00

Annual Tax Return 25.00

Miscellaneous 899.44

TOTAL 17,470.00 1,381.94

Sangama, Dindima and Special Events

Sangama - Ugadi Advertisement Income 3,276.00 Printing Charges 1,808.24

Sangama - Deepawali Advertisement Income 3,825.00 Printing Charges 2,100.00

Dindima Advertisement Income 200.00 Supplies 150.00

Dasa Day Sponsorships 3,324.00 Food Expenses 2,755.00

Sankranti Hall and Supplies 1,046.18

Winter Olympiad 1,141.00 448.36

Youth Committee 350.00

TOTAL 12,116.00 8,307.78

STANDARD EVENTS

Yugadi 230.00 Hall, Food, Artist &

Miscellaneous 3,759.54

Movie Event 580.00 526.36

Picnic 942.96

Ganesh Habba 575.00 6328.62

Deepavali 875.00 9,198.79

TOTAL 2,260.00 20,756.27

GRAND TOTAL 31,846.00 30,445.99

Balance (Surplus) 1,400.01

VKK Internal Audit Report 2010 Page 4 of 4

VKK Bank Accounts Opening and Closing Balances as of 1/23/2011

Checking Account Amount Savings Account Amount

Opening Balance $4,143.93 $7,566.29

2009 Expenses Paid in Jan 2010 ($2,956.63)

Interest earned $0.00 $2.28

TOTAL $1,187.30 $7,568.57

Closing Balance $696.08 $10,155.88

DIFFERENCE ($491.22) $2,587.31

NET DIFFERENCE $2,096.09

2 Outstanding Checks (231.80)

Net Deposits from 1/1/2011 through 1/23/2011 ($464.28)

Net Surplus for 2010 $1,400.01

Certificate of Deposit-1 Amount

Certificate of

Deposit-2 Amount

Opening Balance Matures 7/30/11 (24 Mons) $13,656.66 Matures 5/13/11

(12 Months) $11,407.17

Interest earned $307.95 $199.06

TOTAL $13,964.61 $11,606.23

Kannada Kuta Charitable Fund Account

Amount Amount Net

Amount

Opening Balance

Paid to Charities (2009)

Karaoke Night Collection $6,488.80 Expenses $970.00 $5,518.80

Raffle & Bowling Night Collection $3,789.00 Expenses $1,015.49 $2,773.51

Closing Balance