Each year the President and VP Finance of NCC are responsible for the financial stability of New College's funds. This requires an audit to be completed annually. Here you will find the latest update on our audit's and levy funding.
New College Council has completed their Audit for the year ending in April 2020.
This audit was completed by President Maritza Mohammed and VP Finance Mohammed Obaid of the 2020-2021 Council Year.
We have received a qualified audit for the following reasons:
No Disaster Plan: A disaster recovery plan would allow the Organization to be ready and continue its activities quickly in the event of a disaster. During the 2019-2020 academic year we did have vacant positions at various times of the year. Specifically we had the President, VP Finance, VP Promotion, Orientation Chair and Director Promotions vacant at one or more times during the year. Especially with Executive positions being vacant there was no plan or process in place prior to accommodate for these missing positions. This did lead to certain issues which will be address later in the audit summary. Overall there was no plan or action taken that would have prevented the issues caused by vacant positions.
How we will resolve this for the future: NCC is now aware that a Disaster Plan must be in place for any future issues that will occur. We have already made amendments to our Constitution that set out rules for Elections but also situations where we have a no President of NCC. We are currently creating a guide to help council and specifically their Executive’s with the upkeep of the financial status of our Council. This will cover the responsibilities of the VP Finance position and any procedures and rules we follow to ensure the College’s funds are being used and processed fairly.
Courtesy Account Expenses: Courtesy expenses are not recognized and it can result in material misstatement in financial statements. Every year NCC has a courtesy account linked to our bank account that transfers money from NCC to other areas of York. This is mainly used to pay intramural fees along with any standard expenses for our student spaces. Our account statements were never checked monthly during the 2019-2020 academic year to ensure each transaction amount was correct.
How we will resolve this for the future: NCC has now implemented a procedure for the VP Finance along with the supervision of the President to check courtesy account statements monthly and to coordinate with Athletics how much they plan on spending every month. This will help us stay on track with the accuracy of each transaction.
Classification of Expenses: Expenses are not categorized consistently and results in incomparability of income statement. During the 2019-2020 academic year we had transferred records to quickbooks. This being the first year we used it. The way we categorize funds like frosh or social events were all under different titles. This resulted in the auditors having difficulty comparing that year to the previous since everything was labeled different.
How we will resolve this for the future: Once this 2020-2021 Executive Team realized this issue we have kept the quickbooks account consistent. We have also relayed the titles to the new Executive team for the 2021-2022 academic year so when they continue adding more documents and transactions to quickbooks they can keep up the standard.
Essential vs. Non-Essential Expenses: Expenses are not categorized into essential and non-essential. Non-essential levy revenue related to Student- Choice Initiative is subject to HST and thus, the Organization is able to deduct Input Tax Credits (ITC's) for the related expenses. However, we found that ITC's has not been accounted for. This could result in material misstatement of expenses.
How we will resolve this for the future: For the first half of the 2019-2020 academic year we were running Council under new regulations known as the Student Choice Initiative (SCI). This divided our expenses into essential and non-essential, required us to charge tax on certain activities, and students had the option to opt out of having part of their tuition go to College Council they are affiliated with. By November os 2019 SCI was deemed unlawful by the Ontario Government which allowed us to stop working under SCI’s rules. However the Executive’s did not categorize each transaction into non-essential and essential and we currently do not have a HST account as we are currently not charging tax. Since SCI is not in place and hopefully will never be in place again at York, this should not be an issue for NCC in the future. We are currently still consulting with our auditors about opening an HST account as a back up plan.
Recording of Transactions: During the year we noted that the Organization did not set up the accruals and prepayments. The amounts on the financial statements could be materially misstated. All of our transactions must be motioned for during our council meetings and we must have documents to prove each transaction. Some transactions just did not have enough proof since we used a bank account statement instead of an actual receipt or were not uploaded in a timely matter.
How we will resolve this for the future: This year we made sure each transaction had a receipt before conducting reimbursements. We only made exceptions when the pandemic was the cause.
Honorarium: All Honorarium paid during the year had written approval by the Board of Directors. However, T4A slips have not been prepared. All income paid to the individuals has to be reported on T4A slips. Any payment for work on NCC requires a T4A slip if its over $500. Majority of our positions are paid over $500 and they were never given a T4A slip during the 2019-2020 academic year.
How we will resolve this for the future: Starting in the 2021-2022 academic year we will now be processing T4A slips for our Council members who receive $500 or more for honorarium.
Overall New College Council is in a good financial standing as of May 2021. We continue to use our money to benefit New College constituents. All of our services are offered to everyone in the community and our funding is used to benefit constituents as we continue to strive for a better community. We have just received our levy for the 2019-2020 year with the total being $80 676.51 and we have met the carryover number of $15 000 we must constitutionally follow.