Report of the Audit Committee
The Audit Committee appointed by the IAG Council on 1 July 2003 comprised:
Bjorn Geirr Harsson (Norway)
Jan S Krynski (Poland)
Will E. Featherstone (Australia)
The Audit Committee met three times
The Audit Committee performed the following functions
- Examined a random selection of receipt and bank statements of both IAG accounts (one in US dollars and the other in Danish kroner) for the period January 1999 to December 2002. The final quadrennial report and interim annual reports had been checked by Hans Borge Nielsen, a firm of authorized public accountants.
- Checked the balances appearing in the annual and quadrennial IAG reports
- Examined expenditure to ensure conformity with the 1999-2003 budget as approved at the IUGG General Assembly in Birmingham in July 1999.
- Made some enquiries that were clarified by C.C. Tshcerning (IAG Secretary General) and Christina Pedersen (Department of Geophysics at the University of Copenhagen)
The Audit Committee makes the following observations and comments on the IAG accounts
2.1 The previous IAG fund is now incorporated into the IAG account in accordance with the recommendation made by the IAG Council in 1999.
2.2 The accounts were generally well presented and all expenditure was supported by receipts and bank statements.
2.3 A few slight discrepancies were found between the receipts and audited figures. The audit committee had the understanding that this was due to Hans Borge Nielsen requiring some expenditure to be accounted for in different line items. These discrepancies were of the order of a few hundred US dollars, so the Audit Committee considered these to be insignificant in relation to the cost of a new audit by Hans Borge Nielsen.
2.4 During the review period, the IAG made an operating loss of approximately USD 28,000. This amount therefore had to be taken from the IAG reserve, leaving reserves of USD 30,000.
2.5 The Audit Committee found that the IAG had over spent by approximately USD 70,000 in relation to the budget approved in Birmingham. However, this must be balanced against an increase of approximately USD 42,000 in additional income that was not predicted in Birmingham. This additional funding was mainly through unforeseen grants and the sale of publications, notably the International Geoid School notes and the EGG97 CD-ROM.
The Audit Committee makes the following recommendations
3.1 The two separate accounts (one in Danish kroner and the other in USD) should be combined, which will reduce some of the bank fees and charges associated with transferring between accounts and currencies.
3.2 The IAG should consider using a firm of public accountants that is not as expensive as the one currently used, so as to reduce the administrative costs associated with auditing the IAG accounts.
3.3 The IAG should consider negotiating with the existing bank, or find another bank, where the fees and changes can be reduced or waived (e.g., some banks do not charge fees for association accounts)
3.4 Given the reduction of the IAG reserve during the reporting period, it is now timely that a modest membership fee is introduced.
3.5 The IAG should continue to seek external funding from grants and enterprises similar to the sale of the International Geoid School notes and the EGG97 CD-ROM.
3.6 The IAG should seek to build its reserve so as to offset the operating loss made during the 1999-2003 quadrennium.
On behalf of the IAG Council, the Audit Committee has the following acknowledgements and thanks
4.1 The Department of Geophysics at the University of Copenhagen for administrative and other support, notably the secretariat staff.
4.2 The International Geoid Service (Polytechnic of Milano, Italy) and the University of Hannover for providing the International Geoid School notes and the EGG97 CD-ROM, respectively.