Proposed Bylaw Change

A proposed Bylaw change will be discussed at November’s General Membership meeting this Wednesday November 11th at 7:30pm. We ask that you review the wording change below and bring any questions or concerns to the meeting.

CURRENT
ARTICLE IV
ASSOCIATION: BOOKS, RECORDS AND PAPERS
Section 1 The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Members.
Section 2 The Board of Directors shall see that the books and financial reports of the Association are audited within ninety (90) days after a) a change in the Office of the Treasurer or b) the annual regular meeting of Members, whichever occurs first. Further the audit shall be performed in a manner consistent with the provisions of the laws of the State of Illinois and standard accounting practices.

PROPOSED
ARTICLE IV
ASSOCIATION: BOOKS, RECORDS AND PAPERS
Section 1 The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Members.
Section 2 The Board of Directors shall see that the books and financial reports of the Association are review within ninety (90) days after a) a change in the Office of the Treasurer or b) the annual regular meeting of Members, whichever occurs first. Further the review shall be performed in a manner consistent with the provisions of the laws of the State of Illinois and standard accounting practices.

Review Overall, the review process involves:

• Review and inquiries on financials; • Making inquiries related to the accounting practices and principles used by the business; and
• Performing analytical procedures to understand current-year and prior-year balances, or current-year balances outside the CPA’s expectations. To know where to look for potential accounting errors, the CPA needs to have enough information about your company and understand your industry and its accounting principles. You need to gather all documents requested in advance by the CPA, including your: • Trial balance; • Bank reconciliations; and • Accrual schedule, deferred revenue and more. A review will usually satisfy prospective lenders, buyers and investors who don’t have a lot at stake. In particular, reviewed financial statements are used for seeking a smaller line of credit or a small business loan.

Audit

The audit is the most thorough assurance service, requiring considerably more effort on the CPA’s part — and yours, as you’ll field more information requests. In an audit, a CPA is required to obtain evidence through inquiry with appropriate personnel, physical inspection, verification and substantive testing procedures. A CPA or auditor also will examine supporting or source documents, send third-party confirmations to confirm the balances and legal matters, and perform analytical and other procedures. Auditors want to be sure your financial statements are free from material error or fraud. Audits are generally required if you are: • Planning a major financing; • Looking for extended credit from major suppliers; • Raising equity; • Planning to sell a business; • Expecting your company to have a public offering in the future; or • Expecting your company will be funded by the federal or state governments. All publicly traded companies are required to have their financial statements audited and reported to the SEC on a quarterly and annual basis.