ADGA
Finance Subcommittee (Phil Cassette & Charlotte Sankey)
Transaction Review
October 16, 2004

SUMMARY
Selected 70 transactions from the 2004 Transaction Detail by Account printout for auditing purposes. Additionally reconciled the cash accounts listed on the balance sheet with Bank Statements for both checking and investment accounts.

FINDINGS
During the review of transactions a few expenditures needed to be reclassified to properly reflect the actual type of expense. The Association Manager was directed to make these necessary adjustments.

Certain charges from Orix Inc for weekly IT system maintenance were paid without obtaining an invoice. In addition certain postal charges for mailing the News & Events lack the appropriate invoice.

Invoices are not routinely initialed as approved for payment. They only have the check number and date of payment.

Credit card expenditures incurred by the Association Manager are not reviewed by an office person other than the Association Manager.

RECOMMENDATIONS
1. We recommend that invoices be obtained prior to payment of all expenditures including those of Orix Inc and the US Postal Service.
2. We recommend that all invoices be initialed by the responsible employee for verification and authorization prior to payment.
3. We recommend that credit card charges incurred by the Association Manager be reviewed and verified for appropriateness by Paula Hughes, Administrative Assistant, prior to payment.
4. We recommend that credit card expenditures incurred by Linear Appraisers be reviewed and verified by the Performance Programs Clerk prior to final review and approval by the Association Manager.
5. We recommend the Association Manager review and verify for appropriateness all credit card expenses incurred by Committee Chairs