The audit committee has the responsibility to ensure that mid-year and year-end profit and loss statements accurately reflect district income and expenses. Both audits are included in the World Headquarters’ tax information that is filed with the U.S. Internal Revenue Service every year.

Simply put, we look at expenses and revenues incurred by the District. What are we looking for? Most of the money for the District comes from member dues. Our task is to ensure the money is spent appropriately. We look at each reimbursement and make sure that what was bought is a legitimate expense for the District and is in line with the District’s mission statement. We also need to make sure that any money raised through fundraising will not threaten our non-profit status.

As with every part of the District leadership, the Audit Committee is made up of volunteers. The Chair is usually someone who is trained in basic accounting or has accounting experience. I have worked in accounting for over 40 years, and my experience includes audit work for a national CPA firm.

Before using the present Concur system, the audit process took much longer. Before Concur, District 6 had its own checkbook. Members looking for reimbursement would fill out a form, and then the Finance Manager would look over the form and write the check. The check was then signed by the District Director (previously known as District Governor). The Audit Committee would then need to look at each form and make sure there was a receipt attached or a mileage explanation. They would check to make sure it was a legitimate expense and that the right people had signed off on the reimbursement form. With the present system, the Committee looks at the transaction in Concur and makes sure that the right people signed off on it before it was paid. They also make sure that there is a receipt or map attached to the reimbursement.

Another function of the Audit Committee is to compare actual expenses with budgeted expenses. Any differences need to be explained by the District Trio. Usually, the explanation is adequate to satisfy any questions from the Audit Committee or TI World Headquarters. The committee then signs the audit form and sends it to the District Director to send to World Headquarters.