In order to ensure appropriate accounting and dispensation of all Union WELL Inc. funds and to be in full compliance with the rules and regulations of a not-for-profit corporation and a CSU Auxiliary, an annual audit must be performed by an independent auditor with a final report submitted to the full Board of Directors for acceptance.
For the Union WELL Inc., it is the policy of the Board of Directors that the annual audit firm selection and audit process shall include the following steps:
- Review audit firms' reputation, capability, and cost prior to annual audit firm selection and letter of appointment.
- Select audit firm and/or audit firm's personnel on a cyclical basis to ensure that new audit perspectives are brought forward.
- Ensure that the audit firm reports be provided to and reviewed by the full Board of Directors in a prompt and timely manner.
- Provide to the audit firm all instructions, procedures and formats required by the Sacramento State Standing system-wide Accounting and Reporting Systems with these instructions, procedures and formats being a part of the audit requirements.
- Require that the Board, Union WELL Inc. management, and audit firm shall, if necessary, discuss and answer questions concerning management performance and the financial and internal control functions within the Union WELL Inc. operations, and the audit firm to work closely with Union WELL Inc. management to achieve any desired improvements. Auditing firm shall make a presentation to both the Budget and Finance Committee and the Board of Directors.
Transmit this policy to the Union WELL Inc. Directors and to the accounting, bookkeeping, and cashiering contractors, if any, and require that the Executive Director and such contractors shall additionally provide all necessary efforts to ensure its implementation.
Guidelines and Procedures
- Union WELL Inc. Executive Director, if there is a contract for accounting services, shall work collaboratively with said organization, in the selection process of the Annual Auditor.
- There shall be a Request for Proposal process (RFP) soliciting proposals from local qualified Certified Public Accounting Firms. This policy shall be included as a part of the RFP process.
- Selection of the Auditor can be a multi-year agreement if financially acceptable.
- Firms must be reviewed for any potential conflict of interest issues.
- Upon final review, the Board of Directors Audit Committee makes selection recommendations to the Budget and Finance Committee and subsequent final selection by the Board of Directors.
Adopted: March, 1981
Updated: November, 2001
Updated: November 18, 2009
Updated: December 2, 2009
Updated: February 19, 2014