DBA opts to hire outside accountant

The Duke Bar Association, which recently incurred $682 in fees after its treasurer bounced 27 checks, has agreed to open its financial accounts for review by an independent certified public accountant.

DBA agreed at its Feb. 5 meeting that a review of its books was necessary in order to establish the credibility of previous transactions and the location of funds.

At a special meeting Thursday afternoon, the executive board decided to hire an independent certified public accountant, Leta Lloyd, to perform the task. Lloyd was recommended by law school personnel and is unaffiliated with the University.

Instead of hiring someone to perform an audit of the books, DBA's executive board voted to have a compilation conducted. Board members said that most of the CPAs they spoke with believed an audit would not perform the functions the board desired because, customarily, an audit reviews third-party accounts and takes only a sampling of the group's transactions. A compilation, by contrast, entails a review of every transaction and will culminate with a report to the DBA executive board.

"Most non-profit organizations use compilations, not audits," said DBA's treasurer Katy Drechsel, a third-year law student and the organization's bookkeeper for two years.

If Lloyd finds any suspicious transactions in her review, Drechsel said, she will first ask Drechsel for an explanation and then present to the board any outstanding questions.

Depending on the amount of time it takes Lloyd to review the books, Drechsel continued, the compilation should be completed by the first week in March and will cost the DBA board between $600 and $1,000. Lloyd will probably review the transactions over the past two to three years, she said.

Although the majority of the board present at yesterday's meeting agreed with the decision to hire Lloyd to perform the compilation, DBA president and third-year law student Carrie Printz voted against the motion. She declined to comment afterward about her decision and the events of the meeting.