Minutes for Finance Meeting - 14 Oct 2023
OIAA FInance Committee
Record of Minutes
Saturday, October 14, 2023
8:00am – 9:24am HDT
11:00am -12:24pm PDT
2:00pm – 5:24pm EDT
Jennifer – Serving Treasurer
Terry N. OIAA Convention Chair
Jeff – Secretary for OIAA
Felix – Alternate Treasurer
Beth – Alt Unity Chair
Mark – Tech Chair
Barry – Finance Counsel Member
Eldin – PAC Alt Chair
Jennifer leads Serenity Prayer. All in Attendance join in.
Review of Agenda Outline :
Jennifer shares Agenda and asks for additions. Jennifer asks for any questions or concerns towards the Agenda.
Felix raises his hand and declares a Motion to Accept Agenda.
Call for any Opposition
APPROVAL OF AGENDA
Review of Prior Months Minutes :
Jennifer asks if Everyone would like to Accept or Review Minutes
Mark complains they are too long. Jennifer explains that it was a 3 hour meeting with a lot of information towards the Budget.
Terry Moves to Accept
Felix Seconds to Accept
Jennifer Asks for Opposition
APPROVAL OF PRIOR MEETINGS MINUTES
Review of Financial Reports.
Jennifer begins by saying that September revenues were just under $4,600.00 with Paypal fees associated with the total.
Accounting fee is $37.00 for accounting software.
Conference expenses for two attendees at the ICOAA. Jennifer explains that the amount is accrual for the 2025 International Convention. Jennifer explains to Terry that her costs have not been budgeted for next year and that she will show her the balance sheet to see what is available.
Translation services. Due to not being able to utilize the usual ASL folks, there is an expense for $495 for ASL interpreters.
Other Technology is all of the Google services such as : Google Suites, Google Cloud, etc.
Website hosting and management is for the special tech workers. Jennifer explains that the tech committee has received their final payment of $5,000.00 and that they also got their first payment for a two week service in September.
Jennifer finalizes by saying they have a net loss of just under $5,600.00.
Felix would like to identify costs a little more clearly. For example : Translation costs, which are some of the highest, he would like to itemize these transactions a little clearer and to classify which group they are for. Jennifer also states that she records it as “Assembly”. Jennifer agrees and states that next year’s budget will provide that information..
Call for Feedback/Questions on Budget Variance :
No Questions or Feedback
Review of Contributions Sheet
Jennifer begins that Sober in China made another contribution. Jennifer says she sent Jan BB their information and is trying to get Sober in China into the directory.
Mark asks about the total being $4568 and if this was the “drop”month. Jennifer replies that this amount was September and this was the slow month Mark brings up how his homegroup hasn’t paid and Jennifer agrees that she’s been getting payments from individuals FOR his homegroup, not FROMhis homegroup.
Beth asks if international groups make one big contribution or wants to know how the international money comes in. Jennifer answers that the international groups are like any other groups and it depends. Jennifer answers that sometimes they do monthly, sometimes quarterly, sometimes annually.
Beth asks if there is an amount that would trigger any alarms from sending money Internationally. She asks if there is a limit coming in through Paypal.
Jennifer answers that, No, there isn’t.
Jennifer says that Steve, the old treasurer sent $1066.00.
Barry says that these transactions were from old Paypal accounts that were kept on personal accounts when the OIAA started. There was difficulty getting the payments from Paypal and Steve worked on it successfully..
Call for Feedback/Questions on Contributions.
No Questions or Feedback
Review of Balance Sheet
Jennifer states that the Cash is at $93.5k. Jennifer tells Terry that she has $5,000 accrued for the 2025 International Translation Expenses. She also says that by 2024, there should be $5,500 and should be more than enough to get going. If there are any other expenses, they can address them in 2025.
Terry asks if this is everything and Jennifer replies that pins are not in this accrual.
Jennifer finishes with saying that the total equity is the amount of cash available.
Call for Questions/Feedback about the Balance Sheet.
No Questions or Feedback
Review of the Agenda
Terry would like to start by asking if they could recategorize it from”Liabilities” so they can identify it easier.
Jennifer explains that the system calls it an accrued expense and that this is the only thing in this category for now so it should be easy to identify.
Jennifer asks if everyone reviewed the Agenda as was sent out prior to the meeting.
She begins by saying that they discussed the budget extensively last meeting, so they are just going over the compilation of the discussion.
Jennifer states that there were many changes that were made. Starting with the lowering of the tech committees budget from $20,000 to $10,000. The Convention Chair’s Budget for Translation is on hold for some workshops for guidelines and committee chair/board meetings. Budget dropped from $8000 to $4000. Change is about $1000 from what was presented to finance last time.
The bottom line is that it is almost -$29,000. The actuals will go into these two categories.
Jennifer points out to Felix where the numbers are showing the entities and where they will go. Felix agrees and they continue on. Jennifer asks if there are any questions or concerns.
Barry asks to review the revenue again. He indicates the predictions.
Jen explains that every quarter historically has lower revenues, so 3, 6, 9, 12 have historically lower revenues, such as September.
Barry asks if these numbers are based on the best guess and Jennifer answers that it is based on history.
Felix also reiterates that they are simply applying a seasonal adjustment based on a month to month growth. Barry asks if the budgeted total is like $83,000. Jennifer agrees and it seems everyone is understanding about the projections. Jennifer asks if anyone has any questions about the budget.
Jennifer asks for more discussion or questions on budget.
Call for Objections to Send to Membership.
Approval for Budget Compilation
Mark leaves abruptly and he was the host of the transcripts. Eldin takes over the recording right when he notices Mark was leaving. Eldin saves the day!
Review of Finance Charter
Next agenda item is the finance charter. Jennifer states that she tried to enact that the treasurer can be the finance chair, but that a lot of people didn’t like the idea. She continues that there is no acting chair for the finance committee with the board. So, she would like to establish what their roles are in the finance committee. Currently, the treasurer is doing all the finance chair duties.
Terry asks if it is too much. Jennifer says no, but recommends the audit still be beneficial and would like to establish the roles of the members of the finance committee. She suggests starting from scratch.
Jennifer asks if they would like to change the treasurer, or add a finance chair, or should we leave the responsibilities with the treasurer.
Terry’s concern is that the chair will not do as much as Jennifer and would want whomever to get together with Jennifer to work. Jennifer states she would be happy for someone else to come in and help .
Felix states that if he were made Treasurer, he would have to delegate most of the tasks that
Jennifer does herself. He also believes that an internal audit would provide some more insight to how they conduct their finances. This way they can define the actual duties and responsibilities delegated within the finance committee.
Barry believes that there will be other complications if the Finance Chair and the Treasurer are two separate entities. He says Spencer the previous, prepared the Agendas, but he had no access to the bank account. Then Brian the treasurer had to hire someone to do the general administration for the committee. He adds that the best way to go would be for the Treasurer to also be the Chair.
Barry asks who gets access to the Xero and money. Jennifer answers that it is her, Felix, Susan and Jeff. Also, the entire board can see the Paypal account. Barry says that he thinks that is a lot more access than was before.
Terry wants to state that if the OIAA Assembly believes there should be a Chair that they should go by what is suggested.
Jennnifer and Barry reply that there was not a vote.
Jennifer also wants to say that in the charter,it is being left open for the opportunity to be brought up if there are any takers for the position.
Beth A. would like to commend them for bringing up the option to audit.
Eldin would like to identify what this motion is clarifying. Jennifer answers that it is whether or not they want to stick with the initial charter, or to add the need for a FInance Chair into the charter. However, it looks like they seem good with the one in place.
Jennifer asks if there are any oppositions to Charter.
Approval of Acceptance of Charter
Last item up for discussion is the outline that Eldin put together for an internal audit procedure. Treasurer begins to go over the procedure. “Objective is to Ensure the Responsible utilization of donations by OIAA members, support the ongoing recovery of alcoholics and to maintain financial transparency.
Jennifer continues reading : “Scope. The audit will encompass financial transactions, records, compliance with nonprofit financial regulations. And cybersecurity measures, Audit procedures, transaction verification.
Explanation : This procedure involves verifying the accuracy and legitimacy of financial transactions. Example : Select a sample of 50 donations made via PayPal over the last quarter. Cross referenced these transactions with supporting documentation to ensure they align with the stated purposes and amounts.
Compliance audit. Explanation : In addition to the previously mentioned compliance audit, OIAA should conduct periodic reviews to maintain its tax exempt status and adhere to nonprofit regulations. Specific example : OIAA should regularly review and update its nonprofit status with the IRS ensuring that it continues to meet the requirements for 510c3 tax exempt status. Additionally, the organization should keep records of any changes to its bylaws, board structure, or mission statement and report these changes to the appropriate regulatory bodies.
Financial statement analysis. Explanation : Analyze financial statements for accuracy and completeness. Example : Examine income statements and balance sheets. Comparing actual figures to budgeted amounts. Investigate significant variances and their causes such as increases in specific donation sources 0r changes in assets and liabilities.
Cybersecurity assessment. Explanation : Evaluate cybersecurity measures to protect financial data.
Example : Conduct vulnerability scans and penetration testing to identify weaknesses in OIAA’s online systems. Make recommendations to enhance cybersecurity.
Operational process review. Explanation : Examine financial processes for efficiency.
Barry brings up Paypal and how they should examine the status of Paypal as they never got the not-for-profit agreement with Paypal. They should look into making sure it is in place.
Jennifer states that she has not looked into it and she will now and thanks him for the information.
Terry would like to add that the word ‘contributions’ and donations are at work on the documentation and they should use one or the other.
Felix wants to explain that they mean the same in two different areas.
Jennifer adds that it is tax exempt and can be written off each year. She continues with reading the process document, “Operational process review. Explanation : examine financial processes for efficiency, example match, map out the donation collection process. Identify manual steps and suggest automation solutions to streamline the process.
Budget and analysis. Explanation, compare actual financial performance to the budget. Example, analyze portal financial reports to identify budget variances such as over spending or underutilization of funds recommend adjustments to the budget based on findings.
Risk assessment. Explanation : Identify and assess financial risks. Example, evaluate the risk of online payment fraud due to reliance on PayPal. Assess the likelihood and potential impact of this risk. Develop strategies to mitigate it such as improved fraud detection.
Digital trail of approvals. Explanation : throughout the audit process. It’s essential to document and maintain a digital trail. Of all approvals, rejections and comments related to expense requests. And other financial transactions. Example, the automated expense approval system generates a comprehensive digital log that records who approved or rejected each expense request. Along with any comments or notes provided during the approval process. The trail serves as an audit log offering transparency and traceability of every financial decision. Documentation, all audit procedures will be documented with support. Evidence and finding. Reporting audit findings and recommendations will be compiled.
In a detailed audit report for review by the Finance Committee Board and Assembly. Follow up the finance committee will monitor the implementation of recommendations and track progress.
To ensure corrective actions are taken. Continuous improvement audit results will serve as a basis. We’re ongoing process improvement and risk management within OIAA.
Felix wants to comment that he is taking his financial risk management class and that this looks just like what he is studying right now. He commends Eldin for this well written report.
Jeff would like to know if the committee will being going forward with the audit utilizing the document. HE advises to set up a subcommittee and asks Jennifer what her plan was for the audit.
Jennifer answers that she has 3 people set up already for the sub committee. She names Eldin, Leslie from communications who has a financial background, and Erica who was the previous secretary and also has a financial background. Jennifer asks Eldin if he could begin communication with Leslie and Erica as to get started in January for 2023 audit.
Jeff says that being able to self police ourselves will go a long way towards ensuring confidence from the membership. He applauds the reference.
Jennifer wants to finish by saying that once the process is started,she cannot and will not help in any way besides answering questions She can only give access. She reiterates that she cannot direct or guide.
Felix would like to know if the audit committee has to be nominated by the actual board which would then retain more independence.
Jeff advises that they would probably leave that up to the finance committee to conduct as long as there was no apparent conflict of interest.
Jennifer, but this committee is going to sit external from the finance committee. It’s going to in fact only report to the board.
Terry makes a motion to close meeting.
Jennifer asks for any opposition.
Jennifer Closes with Responsibility Prayer
–Finance Committee Meeting Ends –
9:24pm HDT // 12:24pm PDT // 3:24pm EDT–