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       #Post#: 568--------------------------------------------------
       Audit Committee
       By: Bagehot Date: May 19, 2015, 5:01 pm
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       As noted during the USOC probation, one of the major failures of
       the USAT was in its Audit Committee, which the USOC found had
       failed to communicate with the general board and the membership,
       overlooked and ignored USOC audit recommendations, failed to
       timely process annual budgets or file annual reports. This was a
       committee chaired by an independent director who believed, for
       some reason, that he was not subect to the USAT Bylaws.
       The USAT Bylaws continue to state as follows:
       [quote]Section 9.10.  Open and Executive Meeting Sessions.
       Ordinarily, all committee and task force meetings shall be open
       to USAT members.  In the event the committee or task force
       chair, with the consent of a majority of the committee or task
       force members in attendance, deems it appropriate:  (i) to
       exclude members at an open meeting for any reason, then the
       chair may declare that the meeting is closed, or (ii) to convene
       an executive session to consider and discuss matters relating to
       personnel, nominations, discipline, budget, salary, litigation
       or other sensitive matter, then the chair may specifically
       designate and call an executive session.  Further, the chair may
       open a meeting of the committee or task force to non-USAT
       members, with the consent of a majority of the members of the
       committee or task force in attendance.
       Section 9.11.  Minutes of Meetings.
       Each committee and task force shall take minutes of its meetings
       and submit them to appropriate USAT personnel for posting on
       USAT’s web site.[/quote]
       The Audit Committee specifically is authorized as follows:
       [quote]Section 9.13.  Audit Committee.
       The Audit Committee shall be appointed and have the
       responsibilities as follows:
       a. The Board of Directors shall appoint the members of the Audit
       Committee and its chair, all of whom shall be directors of the
       Board.  An Independent Director of the Board with financial
       experience shall be on the Audit Committee, and a majority of
       members of the Audit Committee (exclusive of any athlete
       representative) shall be Independent Directors.
       b. The Audit Committee shall —
       1. recommend the independent auditors of USAT, review the report
       of the independent auditors and management letter, and recommend
       action as needed;
       2. investigate matters of fiscal controls and disclosure and
       such other matter as directed by the Board; and
       3. perform such other duties as assigned by the Board.[/quote]
       The USOC also directly ordered the USAT to provide timely
       transparency regarding financial matters
       [quote]95. Section 220524 of the Act provides that an NGB shall
       be responsible to the
       persons and amateur sports organizations it represents. Further,
       Section 8.7(1) provides that an
       NGB shall be financially and operationally transparent and
       accountable to its members
       141. USAT shall take immediate steps to effectively communicate
       with its members
       and be transparent regarding its actions.
       142. USAT shall post complete and accurate minutes on its
       website within fifteen (15)
       days of Board meetings.
       144. USAT shall prepare and post year-end financials and IRS
       Form 990s on its
       website in a timely fashion.[/quote]
       The USAT's tax return, the 990, was due by the filing deadline
       of May 15. It's not posted. The Audit Committee has never held a
       meeting (according to the official, public record of USAT
       meeting minutes). It has never held an open meeting, nor
       declared executive session that anyone can tell.
       The Board as a whole doesn't seem to care. The Board Chair, who
       spends most of his waking hours playing Game of Thrones against
       the CEO, wasting time and resources, doesn't seem to be able to
       frame basic questions to the Audit Chair, like "where are your
       meeting announcements, when are your meeting, where are the
       minutes of the meetings and why isn't the 990 form posted by the
       filing date?"
       On the other hand, the Board itself has apparently done nothing
       in the past seven months, since no meeting minutes have been
       posted since November, despite the direct USOC order to post
       them within 15 days of each meeting.
       Bagehot
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