Templates Plus - Setting Up An Audit Committee

Comprised of only Board members (staff members may not serve on the Audit Committee even though they may be members of the Board)
Independent - not receiving, other than for service on the Board, any consulting, advisory, or other compensatory fee from the Association, and as not being an affiliated person of the Association or any subsidiary or chapter thereof, other than as a member of the Association
At least one who is a financial expert (professional certification, education and/or prior business experience interpreting and analyzing financial statements)

Work

The Audit Committee shall:

be directly responsible for the appointment, compensation, and oversight of the work of the auditor;
establish procedures for the "receipt, retention, and treatment of complaints" received by the Association from members or the general public regarding accounting, internal controls, and auditing; and
have the authority to engage independent counsel or other advisors as it determines necessary to carry out its duties.

Resources

The Associations shall provide appropriate funding to the Audit Committee to carry out its duties.

Meetings

At a minimum, the Audit Committee shall meet at least once annually:

- with the senior financial staff and/or CEO to review internally prepared financial reports; and

- with the auditor to review the Auditor's report. A portion of the meeting with the auditor will be in-camera (without staff).

The purpose of Templates Plus is very simple -- to save you from re-inventing the wheel whenever and wherever possible, and if we cannot, to provide templates and resources to make the task easier, faster and cheaper to do.

Association Xpertise Inc. (AXI) is a full-service company providing consulting and other services to associations and non-profits. Details

MAY 2003

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