Audit Requirement

Problem: Audits have been performed in some years and not others. Several years ago, a former treasurer succeeded in persuading the LNC to fire an outside auditor who had uncovered accounting irregularities.

Solution: Ensure that audits are performed every year and ensure greater independence in the selection of the auditor.

Note: Article 7 is included for informational purposes; only Article 10 is being amended.


ARTICLE 7: OFFICERS

7. The Treasurer shall receive, expend and account for the funds of the Party under the supervision and direction of the Chair and the National Committee. The Treasurer shall make an annual financial report to the National Committee and shall perform all duties required of the office by applicable federal and state law. The Treasurer is responsible for oversight of all financial functions, including, but not limited to receipts, disbursements, internal and external reporting. The Treasurer shall report to the National Committee and the Convention both the financial situation of the Party and the results of its activities. The report of the Treasurer to the Convention, specified in Convention Rule 1 agenda item 4, shall include an independent auditor’s report opining whether the financial statements present fairly, in all material respects, the financial position of the Party and the changes in its net assets and its cash flow for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Unaudited interim financial statements shall also be presented. Such reports shall be made available to every delegate.

ARTICLE 10: FINANCE AND ACCOUNTING

2. The National Committee shall cause an efficient double-entry system of accounts to be installed and maintained. Financial statements of the Party shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP). Audits shall be performed annually by an independent auditor. The non-officer members of the National Committee shall appoint a standing Audit Committee of three members with power to select the independent auditor. One member shall be a non-officer member of the National Committee and the other two shall not be members of the National Committee. The Audit Committee shall clarify for the National Committee any recommendations made by the auditor.