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Emerald Valley BMX <br /> March 18, 2002 <br /> Page 2 <br /> (2) From October 1996 through November 2001, $131,109 in EVB expenses are <br /> unsupported by receipts or other adequate documentation. <br /> (3) Since October 1996, Scott and Candy Snook received $19,385 in reimbursements from <br /> EVB. In addition to the reimbursements, payments were made with EVB funds to various credit <br /> card companies for $14,627. These reimbursements and payments are inadequately documented <br /> and in some cases appear to be of a personal nature to the Snooks. <br /> (4) The Snooks commingled funds between EVB and R & C Racing (Scott Snook's former <br /> business) and their personal credit cards. Documentation reveals payments on the Snook's <br /> personal credit cards, ostensibly for EVB business; the documentation does not clearly support <br /> these payments or describe how the transactions related to official EVB business. <br /> (5) In 1998, Snook showed more than $5,000 of wages paid by EVB on R &C Racing's <br /> payroll records. <br /> (6) The internal controls in place at EVB are deficient and there is no clearly defined audit <br /> trail for most transactions. The majority of expenditures are not supported by receipts. <br /> Additionally, the Snooks made all decisions regarding expenditures without oversight by the <br /> board and are responsible for signing all checks. <br /> (7) There is insufficient evidence to make any findings regarding EVB parking revenues. <br /> RECOMMENDATIONS <br /> (1) A new board of directors must be properly elected. The organization's bylaws must be <br /> reinstated and followed. <br /> (2) The EVB -board of directors must assume oversight of the financial dealings of EVB to <br /> ensure that funds are not commingled. <br /> (3) The board of directors must ensure that proper internal controls are implemented and <br /> adhered to. Receipts or other original documentation must be retained to support EVB <br /> expenditures, the records must be kept in a systematic fashion, and there must be separation of <br /> accounting duties. The board must oversee the accounting function and perform periodic review <br /> of the accounting records. <br /> Additionally, the Board should require two signatures on all checks and require <br /> supporting documentation to be attached to checks submitted for signature. <br /> (4) The board of directors must ensure that accounting records are complete and kept in an <br /> organized, systematic manner to ensure that they provide clear audit trails for all transactions. <br /> Additionally, the board must ensure that revenue from all sources is properly accounted for. <br />