GREENBELT INTERNET ACCESS COOPERATIVE 1998 AUDIT COMMITTEE REPORT Part 2 - July 29, 1999
================================================================================ Individually identifiable subscriber account information is obscured in online reports. Full reports on file in the permanent records of the Cooperative are available for inspection on request by Members. ================================================================================ SUMMARY REPORT Basis of the Work The unexpected resignation of the recently-elected GIAC Treasurer and the subsequent "assignment" of Treasurer/bookkeeper duties onto the ad hoc Audit Committee afforded the "opportunity" for the Committee to enact some of its own earlier recommendations. Major Accomplishments Review and setup of 1999 financial records in Quicken was completed. A Checkbook Register and Member Journals were reconstructed using all available membership records, service subscription records, deposit records and bank statements, in comparison with previous journals and general ledger reports. After all data entry was completed, Quicken reports were used to audit and verify agreement at the transaction level between the Checkbook Register and Member Journals. Findings of the Committee A significant number of anomalies were discovered in previous records. In order to accurately determine current account balances, the Committee re-examined all account activity and reproduced all transactions for the period since January, 1998. GIAC billing policies were rigorously applied and correcting (audit) transactions were entered into each affected account. Nearly all Journals were adjusted (with respect to previously distributed versions). Although the details vary by account, in general, two types of changes were applied: - Correct application of VIP activity fees and credits was applied to all accounts, beginning in July, 1998. The large number of transactions involved over a period of thirteen months made the itemization and notation of each change impractical. - Otherwise, each transaction corrected from earlier Journal versions was annotated with AUDIT DEBIT and AUDIT CREDIT entries. DETAIL REPORT Details of the corrections applied and other issues raised by the Committee during this activity are listed below. Money Corrections All items below were applied to the Quicken version of Member Journals and sent by e-mail to Members for verification. Items identified by the Committee during its earlier audit of 1998 financial records are included with the corrections listed. -ALL- 98-99 Activity fees & credits - DEBITS/CREDITS too numerous to list ##### 07/99 Monthly charge not billed - DEBIT $15.00 ##### 03/99 Billed for suspended service month - CREDIT $12.00 ##### 10/98 Billed for suspended service month - CREDIT $15.00 ##### 11/98 Billed for suspended service month - CREDIT $15.00 ##### 01/98 Mailbox billed twice - CREDIT $2.00 ##### 03/98 Diskettes not billed - DEBIT $4.00 ##### 08/98 Service reactivation not billed - DEBIT $10.00 ##### 12/98 Service reactivation not billed - DEBIT $10.00 ##### 08/98 Shell service not billed (thru 05/99) - DEBIT $20.00 ##### 06/98 Payment posted twice - DEBIT $12.00 ##### 06/98 Payment posted twice - DEBIT $12.00 ##### 05/98 Mailbox service not billed (thru 01/99) - DEBIT $18.00 ##### 05/98 Payment posted twice - DEBIT $50.00 ##### 09/98 Erroneous credit - DEBIT $4.00 ##### 07/98 Monthly charge not billed - DEBIT $15.00 ##### 04/98 Payment posting error - DEBIT $12.00 ##### 07/98 Monthly charge billed twice - CREDIT $15.00 ##### 08/98 Service reactivation not billed - DEBIT $10.00 ##### 01/99 Service reactivation not billed - DEBIT $10.00 ##### 01/98 Monthly charge not billed - DEBIT $12.00 ##### 12/98 Payment posting error - DEBIT $9.00 ##### 12/98 Payment not posted - CREDIT $15.00 ##### 12/98 Payment not posted - CREDIT $15.00 ##### 06/98 Payment posting error - DEBIT $16.00 ##### 09/98 Refund & posting error - DEBIT $10.00 ##### 05/98 Monthly charge not billed - DEBIT $12.00 ##### 12/98 Payment not posted - CREDIT $12.00 ##### 02/99 Payment posting error - DEBIT $15.00 ##### 06/98 Terminal service not billed (thru 11/98) - DEBIT $12.00 ##### 09/98 Payment posting error - DEBIT $12.00 ##### 01/99 Payment posting error - NOT CORRECTED $0.44 ##### 12/98 Payment posting error - CREDIT $12.00 ##### 02/99 Payment not posted - CREDIT $12.00 ##### 03/99 Service delay not credited - CREDIT $2.00 ##### 03/99 Payment not posted - CREDIT $34.00 Other Money Issues Items listed below will be disposed of ASAP by the Committee, including appropriate refunds. ##### 02/99 Expense claim due $2.42 ##### 06/99 Resigned - refund due $3.00 ##### 04/99 Resigned - refund due $92.00 ##### 11/98 Payment not found $9.00 - letter due ##### 01/99 Resigned - refund due $35.00 ##### 09/98 Excessive refund - reimbursement due from Member $10.00 ##### 01/99 Excessive refund - reimbursement due from Member $3.00 ##### 04/99 Resigned - refund due $12.00 Accounts listed below will be contacted (if possible) by the Committee to ascertain the appropriate disposition: refund, service activation or continued inactive status with the goal of reducing the number of inactive accounts that must be handled administratively (notices, accounts, audits, etc.) and to determine a realistic guideline for the investment of reserve funds. ##### 01/99 Service cancelled - refund due $50.00 ?? ##### 09/97 Inactive membership - refund due $50.00 ?? ##### 08/96 Inactive membership - refund due $50.00 ?? ##### 12/98 Inactive membership - refund due $65.00 ?? ##### 11/97 Service cancelled - refund due $50.00 ?? ##### 03/99 Service cancelled - refund due $42.00 ?? ##### 12/96 Inactive membership - refund due $50.00 ?? ##### 08/97 Service cancelled - refund due $50.00 ?? ##### 05/99 Service cancelled - refund due $50.00 ?? ##### 02/98 Service cancelled - refund due $50.00 ?? ##### 07/98 Service cancelled - refund due $50.00 ?? ##### 11/97 Service cancelled - refund due $50.00 ?? ##### 08/97 Inactive membership - refund due $50.00 ?? ##### 04/99 Inactive membership - refund due $50.00 ?? ##### 05/99 Service cancelled - refund due $54.00 ?? ##### 05/99 Service cancelled - refund due $38.00 ?? ##### 12/98 Service cancelled - refund due $41.00 ?? ##### 11/98 Service cancelled - refund due $49.00 ?? ##### 06/99 Service cancelled - refund due $35.00 ?? ##### 08/98 Service cancelled - refund due $50.00 ?? ##### 09/98 Inactive membership - refund due $34.00 ?? ##### 02/99 Service cancelled - refund due $41.00 ?? ##### 01/99 Service cancelled - refund due $47.00 ?? ##### 04/99 Service cancelled - refund due $44.44 ?? ##### 06/99 Service cancelled - refund due $38.00 ?? Service Issues Accounts below with recent (1999) issues will be contacted by the Committee to determine appropriate action/resolution. [Some of these items are also listed above under Money Issues.] ##### 08/98 Resignation after VIP ##### 08/98 Resignation after VIP ##### 01/99 Paid request for 2nd mailbox ignored - resigned 04/99 ##### 08/98 Resignation after VIP ##### 12/98 Resignation after suspension - complaints unfounded ##### 01/99 Refund dispute ignored ##### 07/99 Erroneous suspension ##### 11/98 Resignation after abrupt suspension ##### 08/98 Resignation after VIP ##### 05/99 Erroneous suspension ##### 06/99 Erroneous cancellation ##### 07/99 Erroneous suspension Policy Issues The Committee will generate policy proposals regarding the items below. ##### 09/98 Meeting pizza $50.00 ##### 09/98 Self-approval by principals -ALL- 07/99 Monthly verification of financial records RECOMMENDATIONS With reference to the 1997 Financial Audit Report, in which Member Journals were not examined, maintaining both the Checkbook Register and the Member Journals in Quicken will provide significant benefits over previous methods. Quicken reports will enable future Treasurers and Audit Committees to easily compare the two sets of records to identify anomalies. In view of the significant amount of work just completed and the number of corrections and issues uncovered, the Committee recommends that financial record verification be performed monthly. CONCLUSION All Quicken files (programs and data), as well as all current and historical financial records (including any unresolved bookkeeping and audit issues), will be turned over by the Committee to the permanent or acting GIAC Treasurer at the next Board meeting, currently scheduled for August 10, 1999. Respectfully submitted, Neil McLeod 1998 Ad Hoc Audit Committee July 29, 1999 [CLOSE WINDOW TO GO BACK]