Purpose: The Audit Committee shall assist the Board of Directors in fulfilling its oversight responsibilities by reviewing the audited financial reports as well as all audit procedures and processes, including the established system of internal controls.
Number on Committee: Eleven
Chair: Appointed by the President
Vice Chair: None
Makeup: Eleven members: Chair, seven At-Large members, the President, President-elect and Vice President of Administration and Finance are ex-officio members without the right to vote. The members are to be free of any relationship that would interfere with their exercise of sound judgment as committee members. Committee members will confirm that they and their companies/associations have no material business with the Association other than a membership relationship, or with any major vendor. At least one member must have a degree of financial expertise associated with being an executive officer, financial officer or financial/accounting professional.
Restrictions: All committee meetings will be closed to anyone other than committee members and appropriate staff unless otherwise permitted by the committee. No one employed by the Association within the previous three years may serve on the Audit Committee.
No contributing members
Term: Three year staggered terms for the At-Large members
Reporting: Executive Committee, Board of Directors
Duties and Responsibilities:
- Shall engage a certified public accountant to provide an annual audit. Said audit shall be conducted in the spring of each year and shall be conducted according to generally accepted accounting practices. The auditors shall be certified public accountants. The qualifications of an audit firm shall include a verifiable number of clients and experience commensurate with the needs of the Association. The same audit team may not conduct the annual audit for more than five consecutive years.
- Shall solicit proposals for engagement and evaluate auditors a minimum of every 5 years
- Shall oversee the audit process
- Shall oversee the Association’s internal control structure and procedures related to both reporting as well as financial integrity
- Shall investigate matters brought to its attention within the scope of its duties
- Shall act independently of the Executive Committee and any entity or individual with material business relationships with the Association
- Shall forward all recommendations to the Executive Committee as informational items
- Shall perform such other duties as directed by the Board of Directors or the Executive Committee