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LNC passes policy manual changes regarding audit related issues

Information gleaned from LNC-business list. For background see here. An upcoming meeting of the LNC, Dec 7-8 near Dallas-Ft. Worth airport will also be dealing with issues raised by the audit. I was off the internet during the time that all of thee votes took place. – paulie


The following LNC policy manual changes have been voted on and passed:



Insert Section 3.03.3: SPECIFIC STAFF RESPONSIBILITIES:

Accounting Policies and Procedures Manual
The Operations Director in consultation with the Treasurer and the Audit Committee shall review the Accounting Policies and Procedures Manual at least annually and update as needed.

Ayes: Pojunis, Wiener, Tomasso, Kirkland, Lark, Neale, Redpath, Lieberman (superseded), Visek, Olsen, Starchild, Blau, Hagan, Goldstein
Nays: Cloud, Wrights, Johnson,
Did not vote: Hinkle, Vohra, any alternates besides Lieberman
Pased 13-3


Section 2.03.5: Financial Matters: Credit Cards and Expense Reimbursements

This proposal had some things added and some taken out of the previous language; see the changes here.

“Those voting aye: Blau, Goldstein, Hagan, Kirkland, Neale, Olsen, Pojunis,
Redpath, Starchild, Tomasso, Visek, Wiener.
Those voting nay: Cloud, Hinkle, Johnson, Lark, Vohra, Wrights.
Abstaining:
Superseded alternates: Lieberman (aye)
Did not vote: [all other alternates -p]

I count 12 ayes and 6 nays.”- David Blau


Insert Section 2.03.6: FINANCIAL MATTERS: Fixed Assets

Staff shall maintain a listing of fixed assets and update it monthly to record any additions or disposals. Depreciation shall be recorded monthly on a straight-line basis over the estimated
useful lives of the related assets.

“The voting period having ended, I report the following votes on motion
2013-13.

Those voting aye: Blau, Goldstein, Kirkland, Lark, Neale, Olsen, Pojunis,
Redpath, Starchild, Visek, Wiener
Those voting nay: Cloud, Hinkle, Johnson, Vohra, Wrights
Abstaining:
Superseded alternates: Lieberman (aye)
Did not vote: Hagan, Tomasso

I count 11 ayes and 5 nays.” – David Blau


Insert Section 2.03.7: FINANCIAL MATTERS: Time Sheets and Expense Allocation

Each employee shall submit a timesheet at least once per pay period to reflect the number of hours worked, allocating such time to corresponding categories specified in the annual budget.
Time sheets shall be reviewed and approved prior to employee time being entered in the payroll system. Payroll costs for each employee shall be allocated to expense categories in proportion
with approved time. Separate general ledger accounts shall be used for allocated payroll costs.

Where appropriate, an expense shall be allocated to one category. Expenses that benefit more than one category or that are general administrative in nature shall be allocated to a general
administrative account in the general ledger. Those expenses shall then be allocated on a monthly basis to expense categories in proportion to the allocation of payroll costs. Separate
general ledger accounts shall be used for allocated general administrative costs. Monthly financial statements shall separately report allocations of payroll and overhead to corresponding categories.

“Those voting aye: Blau, Kirkland, Lark, Neale, Olsen, Pojunis, Redpath,
Starchild, Visek, Wiener
Those voting nay: Cloud, Hagan, Hinkle, Johnson, Vohra, Wrights
Abstaining:
Superseded alternates: Lieberman (aye)
Did not vote: Goldstein, Tomasso [,all other alternates -p]

I count 10 ayes and 6 nays.” – David Blau


Insert Section 2.03.8: FINANCIAL MATTERS: Inventories

Staff shall maintain an inventory listing of promotional and other inventoried items, costing units on a first-in, first-out basis. The list shall be updated periodically and an inventory count shall at a minimum be conducted annually at year-end. The results of each count shall be reconciled to the general ledger and accounting entries shall be made to ensure accurate presentation of ending inventory on the financial statements.

“Those voting aye: Blau, Goldstein, Hagan, Kirkland, Lark, Neale, Olsen,
Pojunis, Redpath, Starchild, Tomasso, Visek, Wiener
Those voting nay: Cloud, Hinkle, Johnson, Vohra, Wrights
Abstaining:
Superseded alternates: Lieberman (aye)
Did not vote: [all other alternates -p]

I count 13 ayes and 5 nays.” – David Blau


2.04.3: Legal Matters: Contracts and Contract Approval

All contracts or modifications thereto shall be in writing [add new language: and shall document the nature of the products or services to be provided and the terms and conditions with respect to the amount of compensation/reimbursement or other consideration to be paid].

The Chair shall approve any contract in excess of $7,500.

All contracts of more than one year in duration or for more than $25,000 shall be reviewed and approved by General Counsel prior to signing by the Chair.

[add new language: No agreement involving a financial transaction with a related party shall be executed unless first approved by the LNC. Any such agreement shall be disclosed in a conflict of interest statement. ]

Independent contractors doing business with the LNC are required to sign formal contracts that clearly set forth the parties’ intention that they be treated as independent contractors.
Each contract for director-level employment must be circulated to the LNC on a strictly confidential basis after it has been reviewed by Counsel and the EPCC.

“Those voting aye: Blau, Goldstein, Hagan, Kirkland, Lark, Neale, Olsen,
Pojunis, Redpath, Starchild, Tomasso, Visek, Wiener
Those voting nay: Cloud, Hinkle, Johnson, Vohra, Wrights
Abstaining:
Superseded alternates: Lieberman (aye)
Did not vote: [all other alternates – p]

I count 13 ayes and 5 nays.” – David Blau


Insert Section 2.03.9: FINANCIAL MATTERS: Related Party Reporting

For each related party engaging in one or more financial transactions with the Party, all interim financial statements shall include a report of the status, nature and current and year-to-date amounts with respect to such transactions, including contributions, expenses, loans, commitments, guarantees or any other transaction.

“Those voting aye: Blau, Hagan, Kirkland, Lark, Neale, Olsen, Pojunis,
Redpath, Starchild, Visek, Wiener
Those voting nay: Cloud, Hinkle, Johnson, Vohra, Wrights
Abstaining: [all alternates except Lieberman -p]
Superseded alternates: Lieberman (aye)
Did not vote: Goldstein, Tomasso

I count 11 ayes and 5 nays.” – David Blau



Please consider this my official notice that I am ruling that email ballots
2013-11 through 2013-17 have all passed.

These motions are the Audit Committee recommendations for Policy Manual
changes.

All of these changes are effective immediately, but the Audit Committee has
communicated with me that it is understand that some of these may take time
to implement fully. I will be working with staff to ensure these changes
are complied with in a way that ensures timeliness, without negatively
affecting ongoing LP business.

I will present a status of the implementation of these new policies at the
next LNC meeting.

Geoffrey Neale

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5 Comments

  1. paulie paulie November 30, 2013

    Comment bump…

  2. David Colborne David Colborne November 24, 2013

    Not going to lie, the time sheet one sounds a little nitpicky. I’m more than a little curious if staff workflow really supports, “Okay, working on X for the next couple of hours now,” or if there’s consistently more multitasking going on.

  3. George Phillies George Phillies November 24, 2013

    “Staff shall maintain a listing of fixed assets and update it monthly to record any additions or disposals. Depreciation shall be recorded monthly on a straight-line basis over the estimated
    useful lives of the related assets. ”

    We are FEC-reporting, not IRS reporting. Computing depreciation is an irrational waste of time. And with respect to GAAP, note that GAAP specifies that you are allowed to make exceptions.

    With respect to FEC filing reports, note that if the LNC received the actual list of payments to vendors rather than IRS-compliant garbage, someone might have had the brains to ask about the contract with Mr Cloud, the size of the moving expenses, etc. Of course, one might also suggest that anyone who voted for $20,000 in moving expenses is an expense we cannot afford. I am reminded that when my state party shifted off quickbooks to cashflow reports that matched FEC and OCPF filing we rapidly discovered and fixed a number of expenditure paths.

  4. paulie paulie November 24, 2013

    The no votes ranged from 3 to 6, and while there was a lot of overlap they were not identical – ie one of the times it included Lark, other time(s) Hagan, etc.

    Reasons were provided on LNC discuss, which you can hopefully read on the reflector by now.

    I don’t remember all of them but I think they included things like keeping the policy manual from ballooning any further (it is at around 70 pages now), too much staff time going to documnt details of expenses rather than getting other work done, and some others I don’t remember off the top of my head.

  5. David Colborne David Colborne November 24, 2013

    Interesting how the votes were virtually identical. Did the “nays” provide any indication of why they voted against these measures?

Comments are closed.