Committees and Task Forces

Responsibilities: According to the bylaws, there shall be an annual independent audit of the corporation that shall be reported to the membership. Identify accounting firm to perform annual ISTSS audit and review final audit prior to distribution to Finance Committee.

Composition & Designated Members: Chair is appointed by the President and reports to the Board of Directors  As the results of an inquiry at the November 12, 2008 Board of Directors meeting, the Executive Committee decided that the chair of this committee should not be a member of the Board of Directors. The Finance Committee Chair is a member of this committee as well as three or four other ISTSS members, in good standing, suggested by the Chair.

Authority (including limitations): The committee has the authority to choose an accounting firm annually to conduct an audit of ISTSS. The committee has the authority to review and recommend an annual auditor’s report to the Executive Committee for acceptance. The committee has the authority to recommend to the Finance Committee, Executive Committee and Board actions to improve ISTSS’s financial management and compliance with accounting and governmental rules and regulations.  With the exception of choosing a firm to conduct the audit, the committee is limited to recommendations, not approval.

Society Policies Impacting Function: Auditor replacement could originate with the Board of Directors to which the committee would need to respond.

• 6/23/04:  Approve establishment of an ISTSS Audit Committee.
• 1/27/04:  The Executive Committee agrees to have a full audit on an annual basis.  ISTSS will secure the same accounting firm that was used in 2003.
• 5/28/90:  The Treasurer and the Budget and Audit Committee investigate the accounting discrepancies and establish a new procedure to avoid this kind of problem in the future.
• 10/24/87:  The Executive Director brings to the board any increase of more than 25% over the prior year's audit cost.

Interactions with other committees: The committee may work closely with the Finance Committee on auditing issues and seek their support.

Products: A completed annual report produced by an agreed upon auditing firm and presented to the Board of Directors at their mid-year Board meeting.

Staff Resources Available (from Sherwood scope of work): The Sherwood Group scope of work specifies the following activities in relation to the function of this committee:
 
Annual Audit/Review

• Solicit up to three bids for annual audit as directed by Audit Committee
• Contract with independent CPA firm approved by Audit Committee for an annual audit, as directed by the Audit Committee-Schedule the audit with independent provider
• Prepare necessary schedules and reports, and respond to CPA firm questions
• Distribute final report as appropriate
• Provide information to Audit Committee chair to access conference call system.
• Participate on conference calls as requested and arrange for participation of CPA firm as requested.

The Executive Director and the staff accountant, as well as the CFO are available to the committee on a regular basis. 

Financial and other resources available: The committee may confer via conference calls throughout the year for purposes of discussing the annual audit.

Processes/procedures: In January of each year, the committee determines if the previous audit firm will be retained or notify headquarters to secure bids to secure a new accounting firm. The committee reviews the audited financial statements for presentation to the Executive Committee.

Questions & Open Issues: N/A