[CCWG-ACCT] Regarding financial reporting versus auditing

[Carrie Devorah]

http://www.circleid.com/posts/print/20090203_icann_blows_46_million_stock_market/

On Tue, Mar 24, 2015 at 2:35 AM, Bruce Tonkin <
Bruce.Tonkin at melbourneit.com.au> wrote:

> Hello Paul,
>
> >>  That’s why I called it a “forensic audit” – it’s a practice I’m
> familiar with that I’ve heard go by that name, but I am comfortable with
> “deep dive.”   I am not asking after the annual financials for the last 5
> years – but a deeper examination of line-item expenditures and such.  At
> the top level, the financials ICANN releases which talk about thinks like
> administrative expenses have much less detail than I am suggesting we
> should be interested in – either as part of the CCWG’s review or as part of
> a longer-term WS2 project for the “Community Council” (of what ever form it
> takes) to undertake to see where the expenditures are going on a more
> granular basis.
>
>
> I think what you are asking  for is more detailed financial reporting.
> One of the challenges at ICANN is each group wants reporting in a different
> format.   E.g. groups like to know how much is spent on the function that
> is of most interest to them - e.g. IANA, policy development, , or
> compliance.   Accurate reporting will require time-sheets and projects
> codes - which is not in place right now.   The finance system can certainly
> report how much is spent on phone calls  Internet access, building, rent
> etc - but not how much of the phone bill is related to IANA.
>
> Ultimately the community needs to reach agreement on exactly what level of
> detail they want to see - and the organization can design systems and
> processes to get to that level.
>
> An audit – is to check that the organization is complying with accounting
> standards, and internal policies relating spending authorities,  travel
> expense policies etc.   The auditors identify  any issues found in
> compliance with policies and account standards  to the audit committee and
> the audit committee ensures that staff fix any issues found.
>
> A forensic audit – would be if you have some evidence or suspect illegal
> behaviour – e.g. a employee stealing money from the organization – in which
> case you use a forensic audit to gather evidence for prosecution etc.   It
> is not something you do as part of normal financial governance.      If an
> auditor found big discrepancies between stated revenue or assets - then
> that might trigger a forensic audit.
>
> Regards,
> Bruce Tonkin
>
>
>
>
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-- 
Sincerely
CARRIE Devorah
 562 688 2883



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