On September 8, JavaMug board approved the audit submitted by David Dietz and Stuart Yarus. Stephanie Smith, 2004 Treasurer and audit committee member, voted against the audit due to its misleading statements, inaccuracies, and form. Stephanie Smith submits the following response to the audit to be included in an addendum section to the audit that includes supplemental statements.
Meeting Dates of Full Committee
The full committee did not meet February 20. Stephanie Smith was not at any audit meeting after the last meeting on January 28, 2004.
General Comments
No paper trail was available to verify the accuracy of bank statements and Quicken. No originating source for many deposits. No trail to source of expenses and invoices for all checks paid out. No receipts for many expenses. No cross reference between monies donated to JavaMug and those actually deposited. No cross reference between expenses actually incurred by JavaMug and monies paid out.
A full paper trail is not available to verify receipts and expenditures. Bank statements show deposits and checks. Quicken shows these same deposits and checks.
Checking Account
There is no outstanding liability to ISIS. The October plaque (if given) was paid for in advance in September. There is a match of each check to ISIS with an invoice for ISIS up to a check in September that was a pre-payment for the next plaque. There is no official record that a plaque was given in October. Someone thinks they remember it happening.
American Express Checks
The 2001 and 2002 balance sheets contradict the statements made about the American Express Checks. The American Express Checks may have been given out as door prizes. They may have also been lost. There is no consistent documentation to show what happened and all else is supposition.
Deposits
The bank statement showed deposits made. These deposits were recorded in Quicken. JavaMug received deposits for which there is no accounting of the source of the deposit.
Suggestions
The 2004 procedures for the Treasurer office, when followed, will prevent problems with future audits. A paper trail will be available for all deposits and expenses of JavaMug. Cross references can be made between the bank statements and financial ledgers to the originating expense or income.
Conclusions
The JavaMug audit from January 1, 2001 to December 31, 2003 has been completed.
Thank you,
Stephanie Smith
JavaMug 2004 Treasurer
October 10, 2004