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OCA Internal Auditing Committee report to the 15th AAC

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  • Nina Tkachuk Dimas
    http://www.oca.org/news/1682        Posted 11/03   OCA Internal Auditing Committee report to 15th All-American Council now available online   SYOSSET,
    Message 1 of 1 , Nov 3, 2008
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      http://www.oca.org/news/1682
             Posted 11/03

       
      OCA Internal Auditing Committee report to 15th All-American Council now available online
       
      SYOSSET, NY [OCA Communications] -- The report of the OCA's Internal Auditing Committee to the 15th All-American Council is now available on the OCA.org web site.
      The Auditing Committee's report may be downloaded in PDF format here or on the 15th All-American Council web page.
       
      [Pages 2-4 appear below.  Page 1 is a cover sheet.]

      Orthodox Church in America
      Auditing Commitee 2007 Audit Performed Quarterly

      Auditing Committee Archpriest Paul Suda (Chair), Archpriest David Mahaffey, Mr. David D. Donlick (1st Quarter only), Mr. Frank Tkacz (replaced David Donlick)
      Purpose Reviewed transactions that have occurred during the 2007 calendar year and audits were conducted on a quarterly basis and reports given to the Metropolitan Council. Objectives To review all transactions under the following categories:
      • Credit card transactions
      • Expense reimbursement transactions
      • Payroll transactions with proper authorization
       
      Discovery •
      • Expense reimbursements:
      • We discovered that no one within the central administration has an OCA credit card.
      o Documentation matching reimbursement was found to be allocated to the appropriate expense category.
      o Transportation expenses including personal mileage and car services were found to be properly documented however, some of the expenses were found to be excessive and a recommendation was made to find more affordable alternatives.
      o The majority of transactions were found with matching receipts for the specific expense. There were a few reimbursements that did not have proper receipt documentation. A recommendation was made to assure no expense is reimbursed without a supporting receipt. We realize exceptions can be made but, must be approved by the appropriate party with a reason for the exception.
      o Personal vehicle mileage should include all gas expenses and should not be a separate expense. Gas expenses should not be expenses. The personal vehicle mileage should be equal to or greater than the allotment established by the Federal Government.
      o The travel expense voucher is adequate for one-day travel. However, a supplemental sheet should be established for multiple days. 
      Page 2 of 2



      • Father Tassos is in the process of improving this cumbersome system so that, in 2008 we will be able to trace each and every entry of funds received from its arrival at the Chancery until it is deposited into the proper account.
      • The year ends with a surplus of $228,152 and all of the outstanding bills as of December 31, 2007 were paid.
      • Regarding restricted funds many we expended in 2007 the remaining fund not distributed are being researched to make sure they are in the appropriate fund.
      • We have discussed with Father Tassos the continued need for an outside auditing firm and had a telephone conference call with Father Tassos and the CPA firm of Weiser, LLP. We trust the judgment of Father Tassos and recommend this firm be engaged as the outside auditors.
      • We are also excited by the new software system in place that allows us to receive any documentation of minutes. When Father Michael Tassos was hired as treasurer both he and his staff provided us with all requested documents and reports. Due to the previous accounting methods, it was not possible to follow single entrees into the receipt file from entry to deposit into a banking account. The procedure in place prior to Father Tassos’ overhaul left out important and necessary classifications of funds received for proper documentation. It does appear that all monies received, either by check, cash or credit card was placed into accounts owned by the church but there was no policy in place for a direct classification of each entry as it was received. There was no way to trace its steps through the accounting office to verify a complete deposit into an OCA checking account.
      • The comprehensive report of Lambrides, Lamos and Moulthrop LLP and their
      thirty-two observations and recommendations were implemented by 2007 year-end. As a result of our reviews we believe the custodians of these funds have conscientiously performed their financial and fiscal duties.
      Page 3 of 3
       

      Orthodox Church in America
      Auditing Committee Audit Review: January 1, 2008 thru September 30, 2008 Auditing Committee Archpriest Paul Suda (Chair), Archpriest David Mahaffey, Mr. Frank Tkacz Purpose Reviewed transactions that have occurred during the months of January 1, 2008 thru September 30, 2008 on a quarterly basis; two of the quarterly reports were given to the Metropolitan Council. Objectives To review all transactions under the following categories:
      • Credit card transactions (only a gas card)
      • Expense reimbursement transactions
      • Payroll transactions with proper authorization Discovery •
      • Expense reimbursements: Credit card- gas card all properly documented. o Documentation matching reimbursement was found to be allocated to appropriate expense category. o The petty cash funds were properly documented. o Substantial payments have been made to the 9/11 and Bibles for Russia accounts. Mortgage •
      • Another concern of the auditors is the uncertainty of legal expenses. The outstanding mortgage loan of more than $900,000 brings an interest expense of more than $6,000/month from the $14,300/month payment.
      Page 4 of 4

       
      We want to express our appreciation for the cooperation of the entire central staff and administration, particularly Father Michael Tassos and more recently Father Dennis Swencki for their help in providing all of the necessary documents in a timely manner. Substantial progress has been made and as a result of our reviews we believe that the custodians of these funds have conscientiously performed their financial fiscal duties.
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