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Expert: Consuelo Herrera, International Accountant and Fraud Examiner - 8/26/2009


Question
I have requested an audit done on our Dance Team Booster Club...this organization in its bylaws states it is a non-rofit organization, but they are not registered with the Sectretary of State of Texas.  They also do not have a tax exempt number.
The reason for my request is because I noticed from monthly finacials  that checks were missing and when I asked they tell me all have been accounted for, but no documentation.  So I asked for an audit for the past year.  I was told that they had to put this to a vote during the next meeting and see if they can spend funds on this.  What can I do as a member of the club to make sure this is done?  Or can they just not do an audit if the vote is against an audit?  Also the school is aware of all this and has been allowing this Booster Club to use their tax exempt number to accept donations.  I have also requested a copy of the school audit for this past year and I was told that it is done in the fall. What can I do to get this information.  This is a public School in Texas.

Answer
Dear Diana,

Thank you for contacting me.

If this organization is has a non tax exempt, they must be in compliance with IRS regulations. You can access information for free, if they have filled their tax return at GuideStar, www.guidestar.org

You may also contact the IRS database of tax exempt organizations to ensure they were granted that status www.irs.gov, Exempt Organizations.

Concerning an audit, it depends on different factors to be mandatory. Many organizations do not reach the threshold for an audit so they are not required.

An audit is very costly so if an organization is not required to have one, seldom they choose to do so voluntarily.

I would suggest you to send a formal written request for the information you want to review, without make any judgments. Give them the opportunity to provide you with an answer and if you are not satisfied, then, you may contact the IRS for guidance on how to proceed.

Hope it helps.

Best wishes for your success.


Sincerely,



Consuelo Herera, CAMS, CFE
http://accounting.bellaonline.com/Site.asp
www.fraudsolutionsinternational.com  

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Consuelo Herrera, International Accountant and Fraud Examiner

Expertise

I can answer questions concerning internal and operational auditing, fraud prevention procedures, internal control, the Sarbanes-Oxley Act, COSO control concepts, and management oriented auditing. I would love to provide business-owners with suggestions on how to prevent and detect fraud so that they are proactive in protecting their wealth since the very beginning of their entrepreneurial affairs. I can answer questions to both English and Spanish population. I am very committed to keep my standards up today so I know many resources where I can direct those seeking advice.

Experience

I have rendered services for private companies, profit and non for profit, in two countries. As independent consultant I have provided advice to managers in implementing procedures that streamline their operations and enhance their activities. As a staff accountant in a US CPA firm, I performed regular auditing procedures for different engagements.

Organizations
AICPA (American Association of Certified Public Accountants), ACFE (Association of Certified Fraud Examiners), ACFEI (American College of Forensic Examiners.

Education/Credentials
Bachelors of Sciences in Business Administration – Accounting University of South Florida USF – Tampa Florida Catholic University – Colombia Title earned: Specialist in Tax and Customs Central Foundation University – Colombia Title earned: Certified Public Accountant. On August, 2006 I passed all four sections of the Certified Fraud Exam which tests for proficiency in the following areas: Criminology and Ethics, Financial Transactions, Legal Elements of Fraud, and Fraud Investigation.

Awards and Honors
As employee of Forensic Technology Inc. a Canadian company with locations and sites worldwide, I was the winner of the 2005 President's award in the category of Cost Savings through Efficiency or Innovation granted in January 2006 in Montreal, Canada.

Past/Present Clients
I have provided advice to all kind of companies: manufacturing, service, consulting, non for profit organizations, etc.

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