Audit Committee Report to the Membership Spring Convention March 2015

Financial Review Procedures: Reconcile general ledger to bank statements Confirmation letters to selected members/vendors to confirm members’ records match CCATO’s Review seven specific recommendations for improvements in CCATO accounting controls PENDING o Commitment and Payment approval o Monthly Budgeting o Reconciliation of advertising revenues o Revised bank reconciliation procedures o Handling of fees for CCATO staff o Management of accounts receivable o Analysis of differences between budget and actual

2014 CCATO PRELIMINARY INCOME STATEMENT Fund Balance 1/1/14 76,861 Revenue Dues 46,815 Spring Convention 12,230 PSATS 8,950 Fall Convention 14,135 Directory Sales 17,040 Interest 215 Misc Income 166 Total Revenue 99,551 Expenses Administrative Expenses 19,287 Spring Convention 10,841 PSATS 13,607 Fall Convention 14,288 Directory Expenses 13,684 Misc Expenses 4,044 Total Expenses 75,750 Change in Fund Balance 23,801 Ending Fund Balance 12/31/14 100,661

FINDINGS Cash position is strong (~133% of 2014 expenses) Minor adjustment (<$2,000) to general ledger necessary to reconcile with bank statements Confirmation s showed that a sample of affiliates’ records of expenses matched CCATO’s records of revenues Unable to reconcile 2014 directory ad revenue, as most payments for directory received in 2013, prior to conversion to Quickbooks WORK LEFT TO DO Confirm full implementation of agreed-upon procedures and management controls. Updated findings expected in Spring 2015.