Department of Virginia
American Legion Auxiliary
Governance on all levels of our organization are the stewards of the American Legion Auxiliary and are responsible for guiding, supporting and sustaining our mission, values and assets. Their fiduciary duty and responsibility as our “shepherds” are a legal, ethical and moral obligation in ensuring that the resources of our organization are well protected and used efficiently in fulfilling our mission.
What is the definition of an audit?
The definition of an audit is an objective examination and evaluation of the financial statements of an organization.
Auditing is important and necessary because it involves evaluation of and examination of books, accounts, documents and vouchers of an organization to ascertain the accuracy of the financial statements and to show a true and fair view of all transactions. Utilizing the information presented in the Secretary and Treasurers report will help to establish dates and times of the financial transactions as well as help to reflect an accurate financial position of the organization.
Goals of the Audit Committee (as provided in National Charter):
- Independent oversight and advisory role, with the responsibility for decision making resting with Governance
- Reviews policies that are designed to mitigate threats to our organization
- Provides perspective in areas that could be potential risks, if not effectively identified and managed
- Committee members understand that safeguarding our organization requires having, and following, proper procedures for oversight, internal controls and a system for checks and balances
Selecting an Audit Committee:
- Create a three-member Audit Committee for your unit
- Retain one member from the previous year for continuity
- Establish annual or biannual reporting
Functions of the Audit Committee:
- Report what you see and make recommendations to the unit
- Analyze all books and records of the Secretary and Treasurer, fundraising committee, ticket sales etc.
- Address complaints about financial mismanagement
- Reports to be read in unit meeting
- Report copies are to be available for distribution to all members
Audit Committee members should consist of those members who are not employed by or providing any services to the organization beyond their duties as a committee member. They may not represent themselves to be accountants or auditors by profession or experts in the field of accounting, financial reporting or auditing. Appointees should have a strong background with respect to governance, management/organizational policy and procedures, and have no conflicts of interest.
Sarah L. Elam PDP