LCS Audit Committee Policy & Procedures

1. The Audit Committee is an independent Committee of volunteers completely separate from the LCS Board of Directors.

2.  The establishment of the Audit Committee was authorized by the LCS Board of Directors at the December 2008 Board of Directors meeting to monitor the integrity of financial statements, the compliance with governing documents, and the performance of general operations.   

3.  The LCS Board shall have no control over the Audit Committee review process or audit reports issued by the Audit Committee nor shall it be able to prevent publication of the Audit Reports by the Audit Committee to the Membership.

4.  The Audit Committee represents the LCS Membership and recognizes the importance of working with the LCS Board to improve the organization and its operations.

5.  The Audit Committee is authorized by the LCS Board to have complete access to all LCS personnel and records.  The Audit Committee may request any LCS Board Member, employee, volunteer or outside accountant, bookkeeper or legal counsel to attend a meeting of the Audit Committee or to meet with any member of the Audit Committee.

6.  The Audit Committee shall consist of no fewer than five (5) volunteer members who are members in good standing of the Lake Chapala Society.  An exception to the Committee having no fewer than five (5) members shall be made only in the event volunteers cannot be found. 

7.  The Audit Committee Chairman has the authority to appoint and remove Audit Committee members as required subject to notification to the LCS Board.

8.  At such time as the Audit Committee Chairman position becomes vacant, a replacement shall be selected by a majority vote of existing Audit Committee members subject to notification and approval by the LCS Board.

9.  The Audit Committee shall meet as often as it determines to facilitate committee responsibilities, but not less frequently than quarterly.

10.  One Audit Committee member, as designated by the Chairman, shall attend all LCS Board meetings including those sessions closed by the LCS Board.

11.  One or more Audit Committee members, as designated by the Chairman, shall review the financial reports with the LCS Treasurer and Director of Finances prior to each LCS Board meeting.

12.  The Audit Committee shall make recommendations to the LCS Board regarding finances, financial controls and operations, compliance with governing documents, and general internal controls, policies and procedures.   And, on a continuing basis, the Audit Committee shall advise the LCS Board on issues requiring immediate clarification, resolution, or consideration by the LCS Board. 

13.  The Audit Committee recognizes that the LCS Board’s decision to act or not upon the Audit Committee’s recommendations is always at the discretion of the LCS Board.  However the Audit Committee reserves its option to report the disposition of significant matters in the annual Audit Report as it deems appropriate for an informed Membership.

14.  Audit reports shall be prepared on an annual basis within three (3) months of release of year-end financials by the LCS Board.  Interim audit reports may be issued as determined by the Audit Committee.

15.  The Audit Report shall be published on the LCS website and available for review at the LCS General Service Desk. 

16.  In accordance with standard auditing procedures, the LCS Board shall have the opportunity to review and comment on Audit Reports prior to their publication to insure that they are correct as it pertains to the facts. 

17.  Audit Committee members shall wear badges when on the LCS grounds for identification purposes.

18.  Audit Committee members shall not post on Chapala.com or any other website, take sides in any litigation, provide written responses or information, or discuss any investigations or findings of the Audit Committee until the Audit Committee has completed its review of the issue and approved the distribution of its findings.

19.  All inquiries or concerns from the LCS Membership may be submitted to the Audit Committee in writing either by e-mail to the Audit Committee’s private e-mail address –

auditcommittee@lakechapalasociety.org

or by a written note presented to a Committee member or to the Office Administrator in a sealed envelope.  Inquiries will be investigated and responded to in writing in a timely manner.  This allows all inquiries and responses to be documented.  Personal meetings and phone calls will be arranged as required.

Prepared April 1, 2009