Policy Section:   Board Process		Policy Number:  BP-8.13
Policy:   Audit Committee Terms of Reference		Date Approved:  April, 2005
		Last Date Reviewed: Nov 2007
		Last Date Revised: April 2005
		Number of Pages: 3

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1. Purpose    This is a standing committee, accountable to the Board, whose purposes are to:

•    Liaise with the external auditor – including a pre-audit meeting with the auditors and a post-audit review of the financial statements and a review (if necessary) of the Management Letter;
•    Evaluate the performance of the auditors and make a recommendation to the Board regarding appointment/reappointment of the auditor;
•    Ensure that internal financial controls are in place and that financial policies are followed;
•    Ensure that AWNA’s financial statements are in keeping with GAAP (Generally Accepted Accounting Procedures);
•    Ensure that tax remittances and corporate returns are done by staff and that signing authority is kept current;
•    Conduct a periodic review of financial statements prepared by staff and make recommendations re same.

2. Key Duties and    Committee Responsibilities
    Responsibilities    The committee:
•    Review financial statements prepared by staff;
•    Evaluate the performance of the auditors and make a recommendation to the Board of Directors regarding appointment/reappointment of the auditor;
•    Review the Management Letter, if there is one prepared by the auditor, and ensure that the management staff deals with the recommendations from the auditor in an expeditious manner.


Committee responsibilities with the support of AWNA staff
•    Ensure that tax remittances and corporate returns are done by staff and that signing authority is kept current;
•    Ensure that financial controls are in place and that financial policies are followed;
•    Conduct pre-budget and post-budget reviews with management staff on behalf of the Board;
•    Ensure that AWNA’s financial statements are in keeping with GAAP;
•    Ensure that there is proper documentation in place for all sales and purchases of capital assets;
•    Review capital purchases periodically;
•    Coordinate the periodic tendering of the audit;
•    Liaise with the auditor prior to the commencement of the audit;
•    Review the audited financial statements with the management staff and the auditors at the conclusion of the audit;
•    Prepare and submit recommendations to the Board of Directors on the acceptance of the audited financial statements.

AWNA staff responsibilities with the support of the
Committee
AWNA staff, with the support of the committee:
•    Coordinates the periodic tendering of the audit

3. Membership    This committee consists of a minimum of three members, and can be made up of board and non-board members.

    Committee members should understand financial statements and the budgeting process.  Ideally, members should also be familiar with GAAP (Generally Accepted Accounting Principles), standards employed by the CA Institute of Alberta and the financial reporting requirements of non-profit associations in Alberta.

    The Executive Director, or his or her designate, is a non-voting member of the committee.

4. Term of    The President, with the Board’s approval, appoints the
    Appointment    Committee Chair for one year. The Committee Chair appoints members for one year.



5. Meetings    The committee meets at the call of the Chair four times per year – once in the spring to discuss the budget and capital purchases, once with the auditor prior to the audit being completed (June) and once with the auditor after the audit is completed (late summer) and once in the fall after the new Board of Directors has been elected.

6. Resources    The committee has a Board-approved budget that covers the costs provided for in point 9 of Board Committee Principles:
            BP-9. 

7. Annual Goals,    The committee meets as soon as possible after the Annual
    Objectives, and    General Meeting to update the goals and objectives, and to
    Work Plan        develop an annual work plan.  The committee submits the
updated goals, objectives and work plan to the Board for approval.

8. Reports        The committee prepares;
•    Progress reports to Board meetings as needed;
•    A written annual work plan for Board approval;
•    A written annual report for the year that assesses the outcomes of the annual work plan and makes recommendations for the next year;
•    A written recommendation to the Board of Directors on the acceptance of the audited financial statements and on the appointment/reappointment of the auditor;
Recommended changes to the committee terms of reference for Board approval