Audit Validates our Strong and Stable Financial Performance
Aug 20, 2019
This is a letter from Economic Alliance Executive Director Doug Neumann that appeared in the August/September Report.
In these Report letters, I try to share timely updates or recent efforts of our team that are valuable or informative to members. Often I’ll simply extend invitations to the wide variety of programs, events and opportunities to connect within your local business community. And sometimes, I get to share good news - a business success or an Economic Alliance accomplishment or another accolade bringing positive attention for our region.
This month, I’m sharing an Economic Alliance accomplishment that could be easily passed by without fanfare. It’s one important enough that it should be shared and transparent to you, the members who entrust us with your hard-earned dollars so we can execute on our mission.
2018 marked the 7th consecutive clean audit for the Economic Alliance.
The financial report issued last month by CliftonLarsonAllen (CLA) provided lots of validation that members can have trust and confidence in the Economic Alliance’s financial position. Some highlights:
- an unmodified opinion of our audit, which is the highest level of assurance a CPA firm can provide
- no adjustments to published financial statements
- strong reserves, exceeding the Economic Alliance’s goal to have conservatively invested reserves of at least 75% of our annual operating budget
- positive returns on that investment portfolio, a rarity among calendar year nonprofit organizations given the market turmoil last December
The Economic Alliance voluntarily submits to an annual audit because we believe it’s important that you as members have that level of assurance your money is being appropriately handled. We have an Audit-Finance Committee that reviews monthly financials and makes recommendations to the Policy Board. That committee also drives attention to issues raised by the audit on emerging issues, such as IT security and changes in reporting standards.
If the audit had revealed any concerns, I would have shared that, too. I’m not writing this to pat ourselves on the back, but to be straightforward about the third-party validation of our organization’s strength and the continued stability of our financials. We hope that fact offers our 1,200 member businesses confidence in our organization and our ability to continue to drive economic, workforce and population growth strategies, and to help businesses succeed.