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The President appoints the standing committees and has appointed himself and the treasurer to the Audit Committee. I was under the impression that those are two individuals that should not be on the Audit Committee. Is there anything in the 11th edition that would reference that?
Guest posted a topic in General DiscussionWE have had questions brought up about members of the board being on 2 commitees at the same time. Can amember be a member of the finance committee and audit commitee at the same time. I feel as thought there is no conflict of interest. Please help me if you can. Rich Appenzellar Executive Director Palms Estates of Highlands County
I was appointed Chairman of the Audit Committee by the President and was authorize to receive all the financial information needed to complete the audit. Two other individuals were appointed to be in the audit committee. Receiving the information for the audit, such as monthly financial reports and bank statement, I posted everything to an accounting program, Quick Book, to get a yearly total of all incomes and expenses which I thought would easier to do the audit. I did not insert any thing that was not in the information that I received. A copy of the accounting report was given to the two members of the audit committee for their review, but when we met to do the audit they did bring thier copy. After reviewing the yealy total and finding some income and expenses that we needed to look more closely, the two members agreed that it was a "conflict of interest since I generated the report" . One mentioned that it was good intent in my part and the other mentioned to get the report from the bank. Since I did "generate" the reports, is this a "conflict of interest"?
I think it's not appropriate for a president to serve ex-officio of audit committee of which he/she also appoints the members. However, I'm struggling with the best language for an explanation. I'm thinking along the lines of the fact that since the president is involved and has responsibility with the day-to-day financials of the organization, that they should not be permitted to serve on the audit committee. Please help. Thanks.