Issue link: http://psai.uberflip.com/i/868124
W EEKLY EDITION AUG 30, 2017 It's Audit Time! …continued By Karleen Kos, PSAI Executive Director In addition: • The PSAI has put a series of internal controls into place. These cover things like who can make purchases, who signs checks, how the Association's credit card can be used, and so on. The auditor reviews these controls and checks to see whether we are following them. If not, this would be reported to the Board. • Each year the Board directs the auditor to do a "deep dive" into an area of the PSAI's accounting. The topic of this "deep dive" is always a surprise to management, making it harder to "cover tracks" on short notice if something is happening that shouldn't be. Doing a surprise "deep dive" is a best practice t he Board implements two years ago. Apart from the auditor's function, PSAI's treasurer has access to review both the PSAI's bank account and credit card account online. S/he does this at least once a month and reports what s/he finds to the Board. This a llows the Board to review the financial reports they are getting from management and compare them with the treasurer's report. If they match, the Board can feel comfortable they are getting good numbers. As anyone who has ever employed others knows, if a person is really determined to "get away with something" they will find a way. The various controls the PSAI has put in place are designed to ensure anyone who tries to steal or misuse the PSAI's funds won't get away with anything for very long or in a ver y large amount. Q: What have prior audits shown? A: Our most recent audits have been "clean opinions" – indicating the auditor found there were no material differences in what has been reported by management and what they saw when conducting the audit. Th e language used by the auditor in the official report has stated: "In our opinion, the [PSAI's] financial statements … present fairly, in all material respects, the financial position of the Portable Sanitation Association International as of June 30, 2016 … and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America." Q: What do you expect this year's audit to show? A: We are confident we'll receive a clean opinion this year as well. The audit period – July 1, 2016 through June 30, 2017 – was quite successful for the PSAI, and we think the year - to - year comparison will show that the organization is growing ever more financially stable all the time. Q: Where can I get more information or ask more questions? A: Contact Board treasurer Scott Thone, Arkansas Portable Toilets ( sathone@yahoo.com ) or Executive Director Karleen Kos ( karl eenk@psai.org ). PAGE 7