[Lnc-business] Fwd: Libertarian National Committee Audit Committee Engages Gelman, Rosenberg and Freedman
Nicholas Sarwark
chair at lp.org
Tue Mar 17 11:08:19 EDT 2015
Fellow Members of the LNC,
While I was aware of the selection of the audit firm prior to
receiving the forwarded message below, I had not received a written
engagement letter for the audit of the 2014 financials until seeing
the attachments to this message.
It had been suggested that an audit could proceed without a written
engagement letter, based on the same firm's written proposal for the
audit of the 2012 financials, since that had a provision that there
would be no more than a 4% maximum annual cost increase for auditing
the 2013 and 2014 financials (the proposed cost was $10,500 for 2012,
which calculates out to $10,920 for 2013, and $11,356 for 2014).
In response to that suggestion, I had previously informed the Audit
Committee that I needed a written engagement letter prior to
authorizing the contract, as the audit would cost over $7,500,
requiring approval of the contract by the Chair. (Policy Manual sec.
2.04(3)).
While there is a written engagement letter attached below, it
indicates an audit cost of $15,000. That cost is in excess of the
$13,500 that was budgeted by the LNC for an audit, as well as
exceeding the 110% of the budgeted line item ($14,850) that could be
spent without further approval of the entire LNC. It also exceeds the
annual cost increase ceiling from the written proposal for the audit
of the 2012 financials.
Had I been asked to sign (or for approval to sign) the engagement
letter below on behalf of the LNC, I would have declined due to the
cost being in excess of the budget. I was not asked and did not
approve the signature on the attached.
If the LNC wishes to ratify the agreement, purported to have been made
on its behalf, at the meeting on March 28 in Phoenix, the audit can
proceed under the terms below. In the interim, no funds will be
disbursed and no work will be done related to the audit unless or
until I receive an engagement letter for my signature that is within
the budget the LNC has approved.
Yours in liberty,
Nick
On Mon, Mar 16, 2015 at 2:47 PM, Alicia Mattson <agmattson at gmail.com> wrote:
> Below is a message with two attachments, forwarded to you upon request of
> the Audit Committee.
>
> Alicia Mattson
> LNC Secretary
>
>
>
> ---------- Forwarded message ----------
> From: Aaron Starr <starrcpa at gmail.com>
> Date: Sun, Mar 15, 2015 at 8:23 PM
> Subject: Libertarian National Committee Audit Committee Engages Gelman,
> Rosenberg and Freedman
> To: Alicia Mattson <agmattson at gmail.com>
> Cc: mcarling at gmail.com, Gary Johnson <sedition at aol.com>
>
>
> Secretary Mattson,
>
>
>
> Please forward this email to the members of the Libertarian National
> Committee.
>
>
>
> According to Bylaw Article 10.2:
>
>
>
> 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.
>
>
>
> We members of the Audit Committee have chosen to once again engage Gelman,
> Rosenberg and Freedman for the 2014 annual audit and have executed their
> standard engagement letter, which you will find attached along with a letter
> from Gelman, Rosenberg and Freedman addressed to the Board.
>
>
>
> Field work for the audit is scheduled to take place during the week of April
> 20, 2015.
>
>
>
> Respectfully submitted,
>
>
>
>
>
> Aaron Starr
>
> (805) 583-3308 Home
>
> (805) 404-8693 Mobile
>
> starrcpa at gmail.com
>
>
>
>
>
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>
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