The purpose of financials statements is to consolidate, review and communicate actual and budgeted information for a specific period of time. The Treasurer, or another designee, is responsible for producing and publishing these financial reports in a timely manner.
Each Chapter must prepare an annual budget. It is critical that the Treasurer review all major variances (actual versus budget) on a monthly basis. This procedure is core to Generally Accepted Accounting Principles’ (GAAP) strong internal controls. This analysis highlights significant issues and allows the Chapter to adjust its spending accordingly. The analysis also provides a valuable tool to prepare the next year’s budget. The Treasurer should present a formal variance analysis to the Officers and Audit Committee on at least a quarterly basis.