Annual financial report (2011–2012)

Report from the Audit Committee
The Audit Committee met with the Treasurer of the Wiki Society of Washington, DC Inc. (“Corporation”), Mr. James Hare, on February 17, 2013. The Audit Committee is composed of Mr. Kirill Lokshin, Ms. Tiffany Smith, and Mr. Matthew Bisanz, all of whom were present.

Article VIII, Section 2 of the bylaws of the Corporation establishes an Audit Committee to perform an annual review of the financial records. Management is responsible for (a) the preparation, presentation, and integrity of the Corporation's financial statements; (b) accounting and financial reporting principles; and (c) the Corporation's internal controls and procedures designed to promote compliance with accounting standards and applicable laws and regulations. The Audit Committee reviews Management’s records as part of its oversight of the financial reporting and internal controls functions. The Audit Committee is not an independent auditing firm and does not perform an independent audit of the financial statements in accordance with generally accepted auditing standards or render an opinion thereupon. The Audit Committee members are not necessarily professional accountants or auditors and their functions are not intended to duplicate or to certify the activities of management.

Mr. Hare presented detailed financial records documenting the activities of the Corporation over the prior year. These included records of various transactions and contracts entered into by the Corporation, as well as draft copies of the annual financial statements and the Form 1120 tax return. The Committee questioned Mr. Hare regarding the materials and he answered the questions to the Committee’s satisfaction. Mr. Hare indicated that he had no other disclosures of information to make to the Committee beyond the materials he presented.

The Committee verified with Mr. Hare that the Corporation did not warrant to any individuals making donations that such donations would be tax deductible. The Committee, through its own review of the materials and in questioning Mr. Hare, did not find any transactions or disbursements made in violation of internal controls procedures or the Article III prohibited activities requirements of the bylaws.

The Committee noted that Mr. Hare should investigate the Corporation’s duty with regard to state tax liability and he indicated he will do so. The Committee also encouraged Mr. Hare to submit a copy of the draft tax return to the full Board for its information and to post a web-formatted copy of the annual financial statements to the Corporation’s website, both of which he indicated he will do. The Committee also suggested Mr. Hare include a description of the internal controls procedures of the Corporation in the financial statements to make clear that the Corporation followed proper segregation of duties in transactions with members of the Corporation, which he indicated he will add.

The Committee, having found no matters requiring further action besides those listed above, has concluded its annual review of the financial records of the Corporation and is submitting this report to the Board as evidence of its completion.

Statement of Cash Flows
For the purpose of this statement, "cash" refers to funds held in depositories, petty cash funds, payment processing accounts, and purchase cards.