Brian Thibadeaux and Wendy Eichorn audited the club books and found no discrepancies.  They did have several important recommendations which included:

1.  The club should conduct annual audits

2. The club needs procedures for approval of expenses by at least 2 board members (can be done by email)

3. Receipts should be kept for all reimbursements or payments

4. Transactions should be for club use only and never for personal use

5. The safety deposit box is empty and board should determine whether to keep or let go.  Formerly CD's of minutes, records, documents were kept in it.

6.  Insurance should be shopped around

A written result of the audit will be uploaded into club runner documents for historical record keeping.

 

Dan O'Brien and Pam Bratton conducted the audit of the Club Foundation. 

Since the foundation only had 1 full year of historical data, only 2017 was audited.  After the audit, several recommendations were made:

1. Officers should never be writing checks or reimbursements to themselves.

2. Expenses should be revealed monthly in club and board meetings.

3. Transfers from/to club/foundation should not be made and received by the same officer

4. Need record keeping system implemented

5. Only make transfers one time per year of accumulated funds.

A written report of the audit will be uploaded into Club Runner for historical record keeping.

Karlon Cox is not only the club president, but current chair of the Dripping Springs Rotary Club Foundation.  He discussed the reason we formed the foundation was to separate club operations from donations to club projects.  The first fundraiser was the Home And Garden Show in 2017, which made about $8K and was the seed money for the foundation.  The foundation raised $19K this year.

 

The Foundation Board consists of:  Karlon Cox, Sharon Collier, Howard Lott, and Robert Avera.  The board should be elected annually and include rotating terms so there is always consistency and historical knowledge.  The board set the policy this year that no more than 25% of funds raised in any one year can be spent on club projects until the corpus funds are increased enough to be sustainable.

 

The IRS rulings regarding non-profit boards are one of the reasons the club board and the foundation board should not be identical.  If we wanted to engage in Rotary International matching grants, we would use foundation money, not club money.  There was a very healthy discussion of the foundation purpose, and some good suggestions were made to move forward in growing a health foundation and foundation board.

Dr. Bruce Gearing showed a great video on the details of the bond and you can get all the facts at: