Anthem Community Council
I want to encourage readers to attend the next quarterly meeting of the Anthem Community Council that is now scheduled for February 17 at 3 pm at the Anthem Center. I will be there to voice some of my concerns regarding the need for better updated information on their website. In particular they need to have more timely postings of their financial statements. I am also concerned about the bare medians on Anthem Parkway that are now growing weeds. These are just some of my concerns. Please come and make your feelings known during the public comment period.
What follows is the revision of the Audit Committee’s mission and composition that was passed at the January meeting of the Board. Please note that all board members may attend and that any resident can make a request to attend an Audit Committee meeting. The Treasurer of the Board is the Chair of the Audit Committee who is a board member and their contact information is in the Spirit.
7.7 Audit Committee
7.7.1 The Purpose of an Audit
Each fiscal year, Nevada HOA law requires SCA to have their financial statements audited by an independent Certified Public Accountant (CPA). Management, not the auditor, is responsible for preparing SCA’s financial statements and supporting documents in compliance with Generally Accepted Accounting Principles (GAAP).
An audit’s purpose is for an independent CPA to examine management’s financial statements and to determine whether or not the financial statements are fairly presented according to GAAP. This means that management consistently uses commonly followed accounting rules to prepare SCA’s financial statements. Consequently, the audited financial statements can be reasonably relied upon.
A positive opinion that the financial statements are properly prepared, from an independent and professional source, significantly enhances the credibility of the financial statements with homeowners, potential home buyers, and other users of SCA’s financial statements. However, an audit is neither an affirmation that a company is either well managed nor free from fraud.
7.7.2 Mission of SCA’s Audit Committee
The Audit Committee’s purpose is to oversee SCA’s financial reporting, the external audit process, the tax return, SCA’s internal controls, compliance with applicable laws and regulations, and any related risks.
The Audit Committee can expect to review significant accounting and reporting issues and recent professional and regulatory pronouncements to understand the potential impact on SCA’s financial statements. In addition, an understanding of how management develops interim financial information is necessary to assess whether reports are complete and accurate.
The Audit Committee reviews the results of an audit with management and external auditors, including matters required to be communicated to the committee under Generally Accepted Auditing Standards (GAAS). Also, controls over financial reporting, information technology security, and operational matters fall under the committee’s purview.
To protect the auditor’s independence (i.e., the auditors are not under the influence or control of management whose work is being examined), the Audit Committee is responsible for the appointment, compensation, and oversight of the auditor’s work product. Therefore, the auditor’s report directly to the Audit Committee, not to management.
The Audit Committee can meet separately with external auditors to discuss matters that the committee or auditors believe should be discussed privately. The committee also reviews proposed audit approaches and audit coordination with SCA’s accounting
staff. Regarding SCA’s audit functions, the committee will review and approve the audit plan, review staffing and organization of the process, and periodically meet with management to discuss matters of concern.
The Audit Committee can authorize additional expenditures to support the audit process.
7.7.3 Composition of the Audit Committee
SCA’s Audit Committee is composed of the Board Treasurer, who serves as committee chair, one other Director appointed by the Board, the chair of the Finance Committee, and two members-at-large recruited by SCA’s Volunteer Coordinator and approved by the Board.
Each Audit Committee Member will serve a 12-month term beginning on September 1. Audit Committee Member’s service is for the full 12-month term, even if a Member no longer is a Director or a member of the Finance Committee, but all Members must be current Members in good standing of Sun City Anthem. If the Board Treasurer’s or Finance Committee Chair’s term expire within the 12-month term they become additional members-at-large for the remainder of their Audit Committee term.
7.7.4 Independence and Confidentiality of the Audit Committee
Audit topics may directly, or indirectly, discuss staff or management performance. Consequently, the Audit Committee operates confidentially and independently. As an appendage of the Board, SCA Directors can attend Audit Committee meetings as an observer. Otherwise, only members of the Audit Committee and individuals invited by a majority vote of the Audit Committee can attend committee meetings.
During the prime audit season from approximately December to May, the Chairman of the Audit Committee will prepare monthly Audit Committee updates to be published in SCA’s monthly Board Book.