SPCAA Newsletter January 2018
Happy New Year! This newsletter brings you the following announcements and event news:
1. Message About the 2017 Auditor's Report
Regarding SPCAA Auditor’s Report covering the period from 1 April 2016 to 31 March 2017
In the 2017 Auditor’s Report, the independent auditor expressed a “Qualified Opinion” regarding the income from 165th Anniversary Events for the year ended 31 March 2017, of which the Association has not provided the auditor with adequate supporting documentation. There were no other alternative auditing procedures that the Association and auditor could perform to verify the nature of the receipts in question.
What is “Qualified Opinion” in the Auditor’s Report?
Qualified Opinion to the financial statements of the Association is a statement issued after the audit was completed by the auditor, which commented that the information provided in respect of certain deposits in the bank accounts was limited.
Other than Qualified Opinion, there are other kinds of audit opinions, such as “Adverse Opinion” or “Disclaimer of Opinion”. In accounting terms, a qualified opinion involves less serious accounting issues than the other two types of audit opinions mentioned above. Having said that, a qualified opinion indicates that there is room for improvement on the Association’s accounting system.
What is the major cause of the Qualified Opinion?
More than a thousand of transactions occurred in the year. Additional transactions from organising the 165th Anniversary Events added difficulties to the preparation of the Association’s accounts for the year. For information, similar issue has happened in previous years when the number of transactions was substantial.
Although the auditor has verified that the income at issue was attributable to the Association, the income categories of the corresponding receipts could not be classified reliably in the financial statements.
Owing to limited resources, certain deposit receipts were kept but not recorded immediately. As the words of some receipts have faded when the bookkeeping work started, the payers’ names and/or categories of the income could not be recognised accurately.
Additionally, income from certain events was received from representatives of alumni, parents, teachers, or others. Some made multiple receipts without the full list of payers. Certain representatives have passed the cash for various events to the Association without deposit slips. These incidents have attributed to incomplete record of income.
Similarly, some payers or representatives have deposited cash or donations to the Association's bank account without presenting the deposit slips to the Association to enable the names of payers and the categories of income to be identified reliably.
The Association has accounted for those deposits as income from 165th Anniversary Events but could not provide the Auditors with sufficient documentary evidence to satisfy that these deposits were related to 165th Anniversary Events or to other events.
Improvements made in 2017
Since February 2017, the Association has implemented various measures to improve its accounting system. The following are the major measures taken to date:
1. The Association has issued a written guidance to all committee members to set out clear rules on the supporting documents required to be maintained and presented to the Association in organising events.
2. The accounting summary of each event will be completed by the committee member-in-charge with supporting documentation and has to be verified by the respective Director or Vice-chairman, or by Chairman.
3. A separate email account has been set up to record the accounting records presented to the Association by email.
The above additional details serve to provide members with the background of the Auditor’s Report and aim at enhancing transparency and accountability towards members. If there is further enquiry, please feel free to send your questions to email@example.com.
Honorary Treasurer, SPCAA
The Report is available for viewing on the SPCAA website via the following link and login detail:
Login name: report
2. Simon's Happy Hour - January 2018
Date: 9 January 2018 (Tuesday)
Time: 7pm - 9pm
Venue: L16 Cafe and Restaurant
Address: Hong Kong Park, 19 Cotton Tree Drive, Admiralty
Phone number: 2522 6333
Please contact Sam Chiu (9424 7132) for further enquiry.
3. Alumni Bridge Team - Next Match on 20 January (Saturday)
A group of alumni have participated in a monthly bridge competition, Open League, organized by the Hong Kong Contract Bridge Association (HKCBA). We are pleased to inform you that, after their efforts paid in Stage 1, they have entered the Group B in Stage 2. The next match day is 20 January (Saturday), from 2pm to 8pm, at the HKCBA Club House, 20/F, Kelly Commercial Centre, 570-572 Nathan Road, Yau Ma Tei, Kowloon (near Yau Ma Tei MTR exit A2). If you are interested to participate in this alumni bridge team, please feel free to contact Ronald Hui (Class of 1990) at firstname.lastname@example.org or 9268 8529.
With best regards,
Honorary Secretary, SPCAA