Minutes
The
meeting was called to order at 2:05 PM.
Approval
of Minutes
The
minutes of the July 22, 2003 meeting were unanimously approved.
Previous
Meeting
Stephen
Langowski recapped the previous Audit Committee meeting, and
noted that it was important to expedite the audit, requiring
good communication between Society staff and Eisner staff.
Auditor
Open-Item List
Mr.
Langowski asked Lynn Chambers what items were outstanding,
and she replied that the natural expenses need analytic work,
the management and general breakdown needs to be done, and
that Note I should be completed by staff to reference the
upcoming office move, using the approved motion from the July
15 Board of Directors meeting.
General
Discussion
Don
Kiamie asked why the Society would show double rent expense
through October 2004, and Lynda Feldman explained the GAAP
treatment for calculating and expensing deferred rent. Warren
Ruppel talked about the purpose of amortizing rent. Ms. Chambers
said that the rent amortization schedule was presented to
the Board of Directors during their July meeting, and that
she would email the schedule to the committee members.
Lynda
Feldman and Julie Floch then agreed that they are waiting
for the analytic work, as well as the reply to the management
letter point on the Disaster Recovery Plan. Ms. Chambers said
that the Plan had been emailed earlier that week.
Mr.
Langowski discussed the fact that functional expenses should
be shown in program format on the audit. Management strongly
supports this presentation, in response to earlier Board directions
regarding financial reporting. Mr. Ruppel said he favored
reporting the GAAP functional break-out on the Statement of
Activities with any Society defined programmatic reporting
disclosed in the notes. He also asked why the Society does
not report any membership development expenses, since it is
a membership organization that has incurred membership development
expenses as defined by SFAS 117. Ms. Feldman said that general
overhead expenses for salaries are not currently broken out
for the internal reports. Ms. Floch noted that this omission
will be included in the next Management Letter draft.
Ms.
Floch then stated that the draft audit was not complete enough
to present to the Executive Committee during their August
13 meeting. After general discussion, the Audit Committee
decided that the draft audit should not be presented. Mr.
Langowski said that he would call State Society President
Jeff Hoops and inform him of the decision.
Mike
McNee suggested a note regarding the Unrestricted Net Assets
Available for Operations being negative. After discussion,
it was decided not to add that note. Mr. McNee suggested a
note to discuss market volatility, and Ms. Floch agreed to
add that within Note B. Mr. McNee suggested a Management Letter
point to discuss the fact that the scholarship funds were
not being used quickly enough. Mr. Langowski will raise that
issue with the Board of Directors. Mr. McNee asked whether
investment guidelines exist. Ms. Chambers replied that there
are investment guidelines for all funds, that all custodians
have copies of those guidelines, and that investment performance
is monitored by the Investment Committee.
Next
Meeting
A
telephone conference call will be held on Thursday, August
14th at 2 PM to review progress toward completion of the audit.
With
no further business to be discussed, the meeting was adjourned
at 3:10 PM.
Respectfully
submitted,
Lynn
T. Chambers
Approved 8/13/03
