The Compact Finance Audit Committee is tasked with reviewing Compact financial transactions as a supplement and enhancement to external audits by certified public accountants.
The Audit Committee is comprised of about 4-5 selected members of the Operations Committee and the Commission and reports to the Operations Committee and to the Commission. It is responsible for overseeing the accounting, grants, and financial transactions of the Compact. While certified public accountants would evaluate the finances for accepted practices, compliance with laws, and ensuring good checks and balances, the Audit Committee focuses more on legitimate and appropriate use of funds.
Although these other areas are also checked and of concern, the committee evaluates expenditures to ensure that the intent and purpose approved by the Commission is maintained. They work very closely with the Executive Director to oversee grant and general fund allocations and reserves. The Chair of this Working Team is a member of the Operations Committee.
Some of the committee's objectives are to ensure a fiscal separation of duties, maintain fiscal insurance, and maintain a continuity of operations. The Audit Committee also focuses on the use and tracking of federal and private grants so that auditing standards can be upheld.