Region 1 Audit Committee Report 1 March 2012 Audit Harold Ruchelman Region 1 Audit Committee Chair Region 1 Meeting Hartford Marriott Downtown San Francisco, California March 9, 2012

Region 1 Audit Conducted March 1, 2012 at IEEE Headquarters in Piscataway, NJ Period Covered: June 1, 2011 to December 31, 2011 Committee: –Harold Ruchelman, Chair –Robert Pellegrino, Committee Member –Emily Cummings, IEEE Staff Assisted by: –Bala Prasanna, Region 1 Treasurer 2

Audit Objectives Review –Record keeping of Region 1 Treasurer –Procedures used by Treasurer –Expense vouchers and documentation –Account statements and cancelled checks Verify –Account balances –Net worth 3

Findings 4 DateItemAmount June 30, 2011Last audited net worth$230, Wachovia Balance 6/30/11$144, Wachovia Income, 7/1/11 to 12/31/11$18, Wachovia Expenses, 7/1/11 to 12/31/11$151, Dec. 31, 2011Wachovia Balance 12/31/11$12, Assessment Acct Balance 6/30/1112, Assessment Acct Income 7/1/11 to 12/31/ Assessment Expense 7/1/11 to 12/31/ Dec. 31, 2011Assessment Balance 12/31/11$13, Net Cash Flow$131, Dec. 31, 2011LTIF$69, Dec. 31, 2011Current audited net worth$95, Net worth summary

Findings 5 DateItemAmount June 30, 2011Last audited net worth$230, IEEE Correction to Assessment Acct.$1, Corrected Net Worth 6/30/11$231, June 30, 2011Wachovia Balance$144, Wachovia Income, 7/1/11 to 12/31/11$18, Wachovia Expenses, 7/1/11 to 12/31/11$151, Dec. 31, 2011Wachovia Balance$12, Net Change to Wachovia$132, Net worth summary

Findings 6 DateItemAmount June 30, 2011Assessment Acct Balance12, Assessment Acct Income 7/1/11 to 12/31/ Assessment Expense 7/1/11 to 12/31/ Dec. 31, 2011Assessment Balance 12/31/11$13, Net Change in Assessment Account$ June 30, 2011LTIF Value$74, Dec. 31, 2011LTIF Value$69, Net Change to LTIF$4, Net worth summary

Findings 7 DateItemAmount Corrected Net Worth 6/30/11$231, Net Change to Wachovia$132, Net Change in Assessment Account$ Net Change to LTIF$4, Dec. 31, 2011Net Worth$95, Wachovia Balance$12, Assessment Balance$13, LTIF Value$69, Dec. 31, 2011Net Worth$95, Net worth summary

Findings (continued) There were ten outstanding checks, totaling $5,404.12, as of December 31, Back-up for electronic fund transfers were missing. One individual was not reimbursed for his travel expenses.

Recommendations When IEEE credit cards are used, proper documentations shall be submitted to justify said expenses. Expense Reports should indicate the purpose of the expenses. 9

Conclusion The Region 1 Treasurer continues to do a competent job. He takes care in processing vouchers and maintains clear, accurate and complete records. –Records are in order and organized –Vouchers are checked and supporting information is present –Accounts are kept reconciled and accurately balanced

For additional information please contact me: Harold Ruchelman Region 1 Audit Committee Chair 11