NAFA Bylaws Amendment Redefines Role Of Audit Committee

The bylaws amendment to change the form and function of the Audit Committee has been approved by the membership by a vote of 194 to 9. Voting was open to all members in good standing as of Friday, October 26. Members were given a two-week time period to vote (until Friday, November 9).

NAFA’s Audit Committee has historically concerned itself with reviewing receipts for NAFA expenditures to confirm that expenditures have been both properly documented and accurately reflected in NAFA’s accounting records.

While review of expenditure receipts and accounting records is an appropriate activity for the Audit Committee of a nonprofit, tax-exempt organization such as NAFA, it was considered that it should not be the Committee’s primary activity or responsibility; rather, the Audit Committee, which should be a subcommittee of the Board of Trustees comprised solely of members of the Board of Trustees, should have a broader responsibility to work with NAFA’s outside auditors to review and report annually to the Board of Trustees regarding NAFA’s financial accounting and reporting practices and internal controls.

Because the Committee will be reviewing matters in which the NAFA Treasurer may have been involved, legal counsel has advised that the Treasurer should not serve on the Committee. This amendment appropriately expands the role and responsibility of the Audit Committee and limits Committee membership to members of the Board of Trustees not including the Treasurer.

A revised copy of the bylaws can be viewed online by clicking this link.

NAFA Fleet Management Association
125 Village Blvd., Suite 200
Princeton, NJ 08540

Telephone: 609.720.0882 Fax: 609.452.8004