************************************************************** IFCSS Headquarters News Release No. 5100 January 17, 1994 ************************************************************** Independent Federation of Chinese Students and Scholars (IFCSS) 733 15th Street, N.W., Suite 440, Washington, D.C.20005 Tel. (202)347-0017 Fax: (202)347-0018 Email: ifcss@wam.umd.edu IFCSS HQ Report On Its Accounting System ======================================== This is to report to our members the steps the IFCSS HQ has taken or will take to reform and professionalize the IFCSS accounting system. I. WHAT HAS BEEN DONE? 1. In early December, 1993, the HQ contacted a number of CPA firms listed in the Washington DC area to request proposals for the bidding to professionalize the IFCSS accounting system. 2. To the deadline of December 31, 1993, four CPAs had presented their proposals to the HQ. 3. On January 3, 1994, the HQ remitted the four CPA proposals to the Council, SVC and others for internal evaluation and consultation. 4. On January 10, 1994, the HQ sent a memo to Council and SVC to finalize the CPA bidding. The HQ recommended that Jeff W.S. Lin, CPA, proceed the task of reforming and professionalizing the IFCSS accounting system. The recommendation was based upon the following three criteria: i) The professional reputation and experience; ii) That the firm's proposed service and business profile closely fit the need of IFCSS as a non-profit organization; iii) The cost factor. 5. On January 14, 1994, the HQ notified Mr. Jeff W.S. Lin that he may immediately proceed to take up the task of helping professionalizing the IFCSS accounting system, which includes (though not limited to): i) Compiling all IFCSS financial transactions and records since and including last term (the fourth term) in accordance with Statements on Standards for Accounting and Review Services regarding non-profit organizations issued by the American Institute of Certified Public Accountants; ii) Providing Evaluation Report on the general conditions of IFCSS accounting system, and on any possible material errors, irregularities or illegal acts; iii) Making policy suggestions on IFCSS accounting format, control and management to promote professionalization. II. WHO IS JEFF W.S. LIN? Mr. Jeff W.S. Lin, Certified Public Accountant and member of AICPA, MACPA and PACPA, headed a CPA firm which has three branch offices in Washington DC, Rockville, MD and Vienna, VA. His company has an efficient staff and a business profile that closely fit the need of the IFCSS. Currently the firm manages accountings for eight non-profit organizations and for a number of business enterprises throughout the Washington DC area. The quality of his company's professional service is well recognized in the community here. His company helped prepare the IFCSS Tax Return for the 1992 fiscal year. In 1993, the company was hired by the head of the National Endowment For Democracy (NED) to conduct an external auditing of the IFCSS regarding the NED funded project. III. WHAT THE HQ WILL DO NEXT? 1. For the fiscal year ended June 30, 1993, the HQ will direct Mr. Jeff W.S. Lin, CPA, to i) Compile the annual balance sheets and the related statements of income and retained earnings of the IFCSS ii) Prepare the federal and state income tax returns for IFCSS 2. For the fiscal year beginning on July 1, 1993, the HQ will direct Mr. Jeff W.S. Lin to: i) Record quarterly and annual journals ii) Post general ledger for each quarter and annually iii) Reconcile bank statements both quarterly and annually iv) Post quarterly and annual earnings records v) Prepare monthly payroll checks vi) Prepare monthly, quarterly and annual payroll tax returns vii) Prepare annual W-2S viii) Compile quarterly and annual financial Balance sheet ix) Compile quarterly and annual financial statement of income and retained earnings x) Compile quarterly and annual financial statement of cash flows xi) Present CPA notes, if necessary, for each of the aforementioned financial statements xii) Prepare annual federal income tax return xiii) Prepare annual state income tax return IV. WHAT THE HQ WILL DO TO SET UP A PROFESSIONAL ACCOUNTING SYSTEM? The HQ, Council and SVC have jointly scheduled an IFCSS Working Meeting (February 5 through 6, 1994) in Washington DC, for which the Council and SVC members, Working Committee Chairs and Project Coordinators are invited. (The Council will have its separate 3rd quarterly conference during the event). Apart from working on the implementation of various IFCSS projects, the HQ will also use the occasion to address concerns over IFCSS accounting system in the following areas: 1. The HQ will direct Mr. Jeff W.S. Lin to report the results of the engagement by his firm which is listed in Section III above. 2. The HQ will direct Mr. Jeff W.S. Lin to report on the general conditions of the IFCSS accounting system, and on any possible material errors, irregularities and illegal acts. 3. The HQ will direct Mr. Jeff W.S. Lin to conduct a study of the internal control structure of IFCSS and make policy suggestions thereupon, which include (though not limited to): i) An accounting policy manual; ii) Spelling out detailed control procedures, environment and system. 4. The HQ will work with the Council and SVC to set up or reform rules and regulations that would ensure greater professionalization and accountability of the IFCSS accounting system. V. A FINAL NOTE The HQ has noted that some council members have raised a number of accusations and charges against the IFCSS treasurer and the financial operations by the HQ. Thus during the IFCSS Working Meeting, the HQ will open all its financial records to the Council and SVC members for scrutinization, and clarify any questions that may be raised thus far. The HQ will publish all the results of the CPA engagement, and reform measures that will follow. The HQ will ensure that all the transactions by the IFCSS HQ have been properly recorded, and each penny spent is accountable to the public trust. ********************************************************************* * IFCSS Headquarters Office * *-------------------------------------------------------------------* * President: Lin Changsheng Vice President: Shi Heping * * Exec. Director: Liu Xiaozhu Chief of Staff: Huang Songyun * *-------------------------------------------------------------------* * PBS-L is IFCSS's news distribution list for individuals. 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