Contributed By: T. Phillips Date Contributed By: June 11, 2002 Email address: email@example.com
AUDIT PROGRAM FOR COLLEGE FRATERNITY
COMPLIANCE WITH GOVERNING BODIES 1. Ensure that the chapter is operating in accordance with the Fraternity ByLaws and Rules. 2. Ensure that the chapter has sufficient controls to mitigate the risks of illegal pledging activities. At minimum, the chapter should ensure that each member is aware of the Fraternity’s stance on hazing and that each member is aware of the penalties and consequences related to hazing. 3. Ensure that each member is aware of the existence of Fraternal ByLaws and Rules and any updates to these rules are communicated to chapter members. 4. Verify how the chapter is kept abreast of new bylaws and rules and ensure that the information is effectively communicated to chapter officers and/or delegates. FINANCIAL REPORTING Obtain a sample of financial reports as created by the Keeper of Finance (KF) and perform the following: 1. Review to ensure evidence of review is indicated. Specifically, review the report to verify that a there is evidence of preparer and reviewer independent of each other. 2. Trace selected figures to their source and verify that KF has audit trail for all receipts and disbursements indicated in the report. 3. Verify that reports are being used as intended and that sufficient oversight exists to eliminate the risk of reporting inaccurate expenses or income. 4. Review chapter receipt books and ensure that receipts are issued in numerical order. Obtain explanation for receipts issued out of numerical order. 5. Obtain chapter back reconcilement’s and ensure that the following controls exists: a. Segregation of duties between reconciler and bank depositor. b. Reconcilements contain support to verify figures and totals. 6. Obtain chapter minutes and ensure that all financial discussions are documented and can be traced to supporting documents. GENERAL REVIEW 1. Perform a review of the chapter roster. The main objective is to determine active membership in an effort to reclaim those members who are inactive. Ensure that the reclamation committee, as are the other committees, is functioning and is actively attempting to reclaim inactive brothers. The risk associated with this test is financial: Inactive membership can lead to adverse financial status with Nationals 2. Perform a review of member payments made for chapter dues and dues paid to Nationals and reconcile to the chapter reports used to record theses transactions. Ensure that there is evidence that members are notified of any financial delinquencies that can jeopardize their membership status with Nationals. POLICIES AND PROCEDURES: 1. Obtain the chapter's policies and procedures and verify that they are being followed as documented. Specifically, ensure that chapter officers and key positions are included in procedures manual. 2. Verify that the Fraternity's policy and training of new members or potential members is documented in accordance with National's standards and guidelines. 3. Verify that all committees rosters exist which include the existence of each committee's function and purpose.