|Re: Expense reimbursement||<– Date –> <– Thread –>|
|From: Sharon Villines (sharonsharonvillines.com)|
|Date: Tue, 14 Sep 2021 12:10:03 -0700 (PDT)|
> On Sep 14, 2021, at 2:04 PM, Kelly Bachman <happyvalleykelly [at] gmail.com> > wrote: > > Instead of an audit by an independent accountant, we have an annual *internal > audit* that specifically addresses internal controls to prevent and detect > fraud and is performed by community members. We have our internal audit > reviewed by an independent accountant for process and results and they > provide us with recommendations to improve internal controls or improve the > process of the internal audit. This only costs a couple of hours of > consulting time. One internal control principle is segregation of duties. > So the person who writes checks for reimbursement does not make deposits or > do the dues billing. So you do all your accounting in house? We still use a management company to handle the finances but it seems that we already do all the work of managing forms and receipts and then spend time reviewing and correcting their accounting and figuring out why the utilities haven’t been paid. So we have team budget people who review expenditures, a community treasurer who reviews them, an admin team that reviews, several members who by personality review everything, and then we have an audit. This is almost $20,000 a year of overhead including the cost of the audit. Personally, I’ve yet to see an advantage but it seems to make some people feel more professional. It’s possible the auditor has found some corrections of which I’m unaware but I am very aware of bills not being paid, bank accounts transferred without transferring the debit cards, accounting of reimbursements to the wrong accounts, etc. With all the online services now, which they use too, it doesn’t seem like that much work. It adds a layer of communications energy as well as cost. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org
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