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No Audits


Guest Jerry

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Our organization is a Non Profit Corporation and file such with the State and the IRS. Our Bylaws state that an Audit is done every year by 2 club members chosen by the Board. It has come to light that no Audits have been done in 5 years as teh treasurer has not been available to turn books over for the 5 years. The Treasurer has been the treasurer for over 15 years. The Board has just let it slip by and did nothing about it. Now that the membership has been made aware, many wish to get a CPA to to the Audit, but that is not in the Bylaws. The organization really has no members who are capable of doing 5 years of audits in a reasonable time nor are any members qualified to audit thnat long of a period of time. The two members appointed this year are known best friends with the treasurer, and many feel an Audit will not take plavce, maybe just a quick review of a few months of the 5 years. Do we have azny real option? By being incorportaed, and filing taxes, is teh organization in violation of any IRS or State laws for not having an Audit done? The Bylaws also state that teh treasurer is to be Bonded, it also came to light that for teh last several years teh treasurer did not renew the Bond that he once had. Again, any legal rules violated here?

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Do we have azny real option? By being incorportaed, and filing taxes, is teh organization in violation of any IRS or State laws for not having an Audit done? . . . Again, any legal rules violated here?

These are questions best addressed to an attorney, not a parliamentarian. In other words, not here.

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Why not have members put forward a motion to hire an auditor? As long as your bylaws don't forbid you from doing that, there shouldn't be a problem, assuming you have enough votes. If a majority of your members is in favour of doing this, you can do this - check RONR when it comes to sections such as Point of Order and Appeal the Decision of the Chair.

I will also note that the "treasurer has not been available to turn books over for the 5 years" is a giant, flashing, neon warning light. I would actually suggest you look at this section, for removal of officers, as well:

http://www.robertsrules.com/faq.html#20

(Legal advice is probably also a good idea, as noted above, especially for the current board who has known about this situation for years and who have done nothing.)

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