Conferences Organization Manual – Section 10 | 
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10.0 CONFERENCE AUDITS
10.1 SELECTION OF AUDITORS
10.2 SCOPE OF WORK
10.3 AUDIT FEES
10.5 AUDITS CONDUCTED BY INTERNAL COMMITTEE
10.5.1 Selection of Data for Testing
10.5.2 Suggested Procedures for Testing
Areas to be Tested in Conference Financial Audits: 1. Budget and Final Report Review Including Timeliness of Report Submission 2. Review of Conference Committee Meeting Minutes 3. Verification of Conference Registration Revenue 4. Verification of Conference Exhibitor Revenues 5. Verification of Conference Publication Sales Revenue 6. Verification of Grants and Sponsorships Revenues 7. Verification of Bank Account Reconcilations, Including Timeliness of Deposits 8. Verification of Credit Card Receivable Collections 9. Verification of Supporting Documentation for Conference Disbursements 10. Verification of supporting Documentation for Social Function Revenue and Expenses 11. Conference Surplus/Loss Distributions 13. Conference Loans and Advances BUDGET AND FINAL REPORT REVIEW: AUDIT STEPS: 1. Obtain a copy of the budget document for the conference as well as any supporting documentation covering the development of figures for the various budget categories (i.e., This would include prior year budgets and financial reports as well as current year documents). Review for completeness. Note any exceptions. 2. Review budget and obtain an understanding of how the budget was computed (i.e., budget will have been developed using either a software package or through manual calculation). Test mathematical accuracy of the budget, using the following guidelines: A. If a software package was employed by the conference committee in developing the budget, request a copy of the budget package on 3.5" disk with the figures for the subject conference included. Conduct limited re-performance of the budget steps for the larger line items in the budget to determine whether the software works as intended. B. If a manual budget was prepared, review assumptions made and recalculate mathematical computations used in developing the current conference budget. Note any questionable items for discussion with the conference treasurer. 3. Compare current year budget with actual results reported in the conference financial reports (i.e., "IEEE Technical Activities Financial Report"). If actual results differ by greater than +/- 10% from budget, then perform the following: Compare current year budget to prior year's actual results (if applicable) to ensure that budget was within +/- 10% of last year's actual results (Note: Primary Budgets are approved one to two years before conference is held. Therefore, the budget may need to be revised and then re-approved, e.g., the budget for 1997 Conference on XYZ would be approved in 1996, before the 1996 Conference on XYZ was held. Therefore, when the 1996 Conference is held and subsequently closed, the Conference Treasurer is responsible for reviewing 1996 actual results and revising the 1997 budget, where applicable.) 4. Review the final budget document submitted to Conference Services for appropriate as well as timely approvals. Note any discrepancies. 5. Ensure mathematical accuracy of IEEE Technical Activities Financial Reports. 6. Verify that the final financial reports were
submitted to IEEE Conference Services 7. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. REVIEW OF CONFERENCE COMMITTEE MEETING MINUTES AUDIT STEPS: 1. Obtain copies of all conference committee
meeting minutes as well as any attachments thereto
to determine what decisions were made by the
committee with respect to conference arrangements,
finances, etc. 3. Document findings for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. VERIFICATION OF CONFERENCE REGISTRATION REVENUE: AUDIT STEPS: 1. Obtain copies of the Registration Process reports (e.g., Member Registration - In Advance, etc.) which contain detailed listings of registrants by type. 2. Compare the numbers of registrants in each category of the Registration Report to the comparable numbers in the IEEE Technical Activities Financial Reports. Note discrepancies. 3. Ensure the mathematical accuracy of the Registration Process Reports, using the numbers of registrants by type from the Registration Process reports, recalculate the expected revenues at prescribed rates for each type of registrant. Compare these figures to the comparable registration category figures in the financial report. Note differences and evaluate causes. 4. Document all findings in the steps performed above for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. VERIFICATION OF CONFERENCE EXHIBITOR REVENUES: AUDIT STEPS: 1. Obtain copies of the Exhibitor Registration Process reports that list each Exhibitor contract by category, e.g., booths, tables, hospitality suites, etc. Also, obtain copies of each Exhibitor contract. 2. Compare the numbers of exhibitors in each category of the report to the comparable numbers in the IEEE Technical Activities Financial Reports. Note discrepancies. 3. Ensure the mathematical accuracy of the Exhibitor Registration Process Reports using the numbers of exhibitors by type from the Exhibitor Registration Process reports, recalculate the expected revenues at prescribed rates for each type of exhibitor. Compare these figures to the comparable exhibitor category figures in the financial report. Note differences and evaluate causes. 4. From a random starting point select a systematic sample of 10% of the items from the Exhibitor Registration Process Reports and agree them to the Exhibitor Contracts. Note any discrepancies. 5. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. VERIFICATION OF CONFERENCE PUBLICATION SALES REVENUE: AUDIT STEPS: 1. Obtain detailed daily Sales Journal records for the conference (i.e., this sales journal should include all conference proceedings sales for the conference). Obtain copies of the supporting documentation for the publications sold to conference attendees as well as to IEEE HQ for resale to others. 2. Verify that the total of the amounts included in the daily sales records agree with the amounts included in the IEEE Technical Activities Financial Report. 3. For sales to IEEE, compare the total sales to
IEEE from the conference final financial report to
applicable IEEE disbursement information. 5. Document all findings in the steps performed above for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. VERIFICATION OF GRANTS AND SPONSORSHIP REVENUES: AUDIT STEPS: 1. Obtain copies of the Grant/Sponsorship (budget) application and award documentation (grant file) which specify the purpose and scope of work to be done with the funds provided. 2. Review the reporting requirements, if any, included in the grant/sponsorship agreement. Determine whether the recordkeeping/reporting process satisfies the requirements. Note discrepancies. 3. Determine whether there are limitations on the use of these funds and test to see if they were observed. Note any exceptions. 4. Verify that the amount of the grant/sponsorship noted in the above documentation was actually received and deposited in the conference interest bearing bank account. Note any exceptions. 5. Ensure that any unused funds and/or interest earned (greater than $250) is returned to the granting agency. Test to determine compliance with such requirements. Note discrepancies. 6. Verify that sponsors with contributions of $250
have been provided an 7. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. VERIFICATION OF BANK ACCOUNT RECONCILIATIONS, INCLUDING TIMELINESS OF DEPOSITS: AUDIT STEPS: 1. Obtain copies of the Registration Process reports, Financial Transaction reports (check register), bank reconciliations and Conference Bank Statements. 2. From a random starting point, select a systematic sample of 10% of the registration batches included in the documentation supporting the financial reports. Compare registration documentation with bank deposits, noted in bank statements, to determine whether receipts are deposited in a timely manner, e.g., In Advance Registrations for 3/15/01 were deposited in the bank on 3/16/01. Note any exceptions. 3. Using the Transaction Reports and the Bank Statements, determine whether bank reconciliations are performed on a timely basis and all differences over $100 are reconciled. Note any exceptions. 4. Obtain copies of Bank Statements for the Savings and Money Market accounts established for the Conference. Compare financial account records with the bank documentation to verify accuracy of principal and interest amounts appearing in conference financials. Note any exceptions. 5. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. VERIFICATION OF CREDIT CARD RECEIVABLE COLLECTIONS: AUDIT STEPS: 1. Obtain copies of Registration Process reports, Transaction reports (check register) and Credit Card Receivables journals from the Conference Financial records. Also obtain IEEE Treasury's Credit Card Collections report for the subject conference. 2. From a random starting point select a systematic sample of 10% of the daily registration documentation, compare the figures shown with amounts deposited in the bank (check register) and credit card charges forwarded to IEEE Treasury for collection (credit card receivable account), if applicable, to determine whether registration totals equal bank deposits plus credit card receivables. Note any exceptions. 3. Document all findings in the steps performed above for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. VERIFICATION OF SUPPORTING DOCUMENTATION FOR CONFERENCE DISBURSEMENTS: AUDIT STEPS: 1. Obtain files supporting each transaction
appearing in the Conference 2. Compare total disbursements, per the Conference Transaction Record to the total expenses, per the IEEE Technical Activities Financial Reports. Note any exceptions. 3. Ensure the mathematical accuracy of total expenses, per the Conference Transaction Register. 4. Select all transactions over $3,000 in the check register for testing. (If the conference records were prepared using Quicken, use the conference's financial records disk to generate a Transaction Report, employing Quicken's filter option to show all disbursements over a threshold level of $3000. If the conference financials were prepared using another software package, go through the Transaction Report manually and select all transactions over the $3000 threshold. From this list review the supporting documentation for each disbursement. Where contracts are involved, review the supporting documentation for compliance with the terms and conditions of the subject contract.) 5. For all transactions under $3,000, using a random starting point, sample every tenth transaction listed in the Conference Transaction record and review the documentation contained in the file in support of the sampled transactions. Note any exceptions. 6. For all payments made to individuals and unincorporated businesses, confirm, via a review of W-9 forms and requests for preparation of a 1099, that were sent to Accounts Payable, that 1099 Forms were issued in all appropriate cases. 7. Document all findings in the steps performed above for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. VERIFICATION OF SUPPORTING DOCUMENTATION FOR SOCIAL FUNCTION REVENUE AND EXPENSES: AUDIT STEPS: 1. Obtain financial account records for Social Function Revenues and Social Function Expenses. This would include such events as spouses hospitality, tours, extra banquet tickets, etc. 2. Compare the actual revenues, expenses and number of attendees for those social functions to the respective budgeted amounts, per the conference budget which was obtained in Audit Test #1. Based on the budget developed for this conference, determine the following: A. Did budgeted expenses exceed budgeted revenues?
If so, note findings. 3. If actual Social Function Expenses exceed actual Social Function Revenue, review the conference center's or other provider's quotes and billings for the provision of the various services covered by these separate social function fees. Determine whether a minimum fee was applicable even if the function did not get the anticipated amount of participation. If a minimum fee is applicable and actual participation was less than the minimum requirement, note for discussion with the Conference Treasurer. 4. Document all findings in the step performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. CONFERENCE SURPLUS/LOSS DISTRIBUTION: AUDIT STEPS: 1. Observe actual allocation of conference surplus by reviewing IEEE Technical Activities Summary Financial Report, produced by the Conference. Determine that the actual allocation agrees with the approved budget allocation which was obtained in Audit Test #1. Note any exceptions. 2. If the conference resulted in a loss, review the documentation related to agreed upon disposition of that loss and verify that the agreement was accurately carried out. Note any exceptions. 3. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. PETTY CASH TRANSACTIONS: AUDIT STEPS: 1. Request copies of Petty Cash Account journals as well as supporting documentation from the transaction file. 2. Select a random systematic sample (10%) of Petty Cash Account reimbursement transactions. [Pull the supporting documentation from the transaction file, and verify that all reimbursements are fully supported by petty cash vouchers signed by the recipient of the disbursement and that, where appropriate, cash register receipts or paid invoices are attached to the petty cash voucher. Note any exceptions.] 3. Document all findings in the steps performed above for inclusion in the draft audit report to be reviewed by the Conference Treasurer before issuance of the final audit report. CONFERENCE LOANS AND ADVANCES: AUDIT STEPS: 1. Obtain copies of Institute, Society, Section and Region financial reports relating to loans and advances made to the subject conference. 2. Verify the receipt and repayment of such loans with the figures appearing in the "IEEE Technical Activities Summary Financial Reports." Note any exceptions. 3. If the conference resulted in a loss and the lending organization agrees to write off all or part of the loan/advance, verify that such agreement is included in the conference files and that partial repayments, if applicable, are actually made. 4. Document all findings in the steps performed
above for inclusion in the draft audit report to
be reviewed by the Conference Treasurer before
issuance of the final audit report. General Audit Program Steps for Audits of IEEE Conferences 1. Review the approved conference budget and compare it to the final financial reports. Evaluate differences that exceed plus or minus 10% of the budget for a particular budget category. 2. Review meeting minutes for any decisions relating to the dates and location of the conference, registration fees to be charged, social function arrangements, conference management services to be used, banking arrangements, loans to be secured from sponsors/co-sponsors, etc. 3. Trace a sample of registration forms to registration summary reports. Verify the accuracy of conference registration numbers, registrants by category and associated registration revenues. Reconcile registration summary reports to registration figures included in the final financial reports. 4. Trace a sample of exhibitor agreement revenues to the exhibitor registration reports. Reconcile exhibitor registration report figures to the exhibitor revenues included in the final financial reports. 5. Trace a sample of publication sales revenue to the conference bank account to verify prompt deposit. Reconcile the publication sales revenues reported in the publication sales summary reports to the final financial reports, including sales to individuals as well as to IEEE (Book Broker Program). 6. Review grant and sponsorship documentation to determine whether there were any restrictions placed on the use of the funds and whether they were observed. Trace grant and sponsorship revenues to the conference bank statements to verify prompt deposit and to the final financial reports to verify accuracy of reporting. 7. Verify prompt deposit of registration revenues by comparing the dates of a sample of registration payment batches to the dates they were deposited in the bank account, per the applicable bank statement. Verify that the bank account is reconciled on a regular basis by reviewing reconciliation reports, prepared by the conference treasurer. 8. Verify that all credit card batches forwarded for collection, either to IEEE or a banking institution, have been processed and the funds deposited in the conference bank account. 9. Verify adequacy of supporting documentation for conference disbursements by reviewing all documentation for disbursements over $3000 US and 10% of all other disbursements on a random sampling basis. Where payments relate to items covered by contracts, verify that the amounts billed are in accordance with the terms and conditions of the applicable contract. Where individuals or unincorporated businesses receive payments for goods or services (including tutorial fees and conference management services charges) of $600 or greater in a given year, verify that requests have been sent to IEEE Accounts Payable for the issuance of 1099s to these individuals and businesses. 10. Compare budgeted social function revenues and expenses to actual figures included in the final financial reports and evaluate differences in excess of 10% by reviewing related supporting documentation (registration forms, contracts, invoices, etc). 11. Confirm distribution of conference surplus/losses to the sponsoring units is in accordance with the conference's approved budget. Confirm receipt of the IEEE portion of conference surplus with the Conference Services Department. 12. If a petty cash account was maintained for the conference, verify adequate support for petty cash payments (paid invoices, receipts, etc.) and proper approval of the disbursements. Verify that the remaining balance of the petty cash fund was re-deposited in the conference bank account prior to its closing. 13. Verify that all conference loans have been repaid and that the fee for audit of the conference financial records has either been paid or arrangements have been made to deduct the fee from the conference surplus account at IEEE. 14. Review such other miscellaneous items that discussions with the conference representatives and completion of the above tests indicate are warranted. 15. Document findings and recommendations, prepare
draft audit report, incorporate responses to
findings from conference representatives and issue
final report to management. SUGGESTED PROCEDURES FOR THE AUDIT COMMITTEE
I. Cash Receipts
II. Cash Disbursements
III. Registration at Conference
IV. Miscellaneous Fiscal Matters
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