was recruited to the American Red Cross by a
former member of this council, Ron Pitman, who
asked whether Id chair an audit committee
meeting at my local chapter. I didnt
believe I had the time, but felt one meeting was
doable. Well, we never can anticipate what events
will shape our lives. I had no idea that American
Red Cross meeting would last 25 years and take me
to 49 states and four continents.Being involved in the largest and most
well-known international charity, one cannot
underestimate the absolute necessity of trust.
The American Red Cross, as all charities, must
have donors trust if it is to receive
funding. Services are delivered only if
volunteers trust they will be treated fairly and
with respect while doing meaningful work, and
blood donors must trust that giving blood is safe
and that it will be distributed properly.
| Kathryn A. Forbes, CPA,
executive vice-president and CFO of eTec,
national chair of Volunteers of the
American Red Cross and president of the
AICPA Foundation, won a 2004 AICPA Public
Service Award. This article is from the
acceptance speech she delivered before
the AICPA governing council in May. |
When one sees
pictures of the American Red Cross doing its
work, they usually are of a disaster worker
helping a family that has just lost its home or
had a member saved by the gift of
lifeblood. But in 25 years I have yet to
see a public service announcement showing an
internal auditor looking at internal controls, a
CFO preparing financial statements or an external
auditor working with an American Red Cross exec
and an audit committee to make operations more
efficient. Yet you are key to the American Red
Crosss retention of its most important
assetthe publics trust.
Many of you know that former
AICPA board chair Stu Kessler is always
campaigning for a television program about CPAs.
Well, I have the first episode. It takes place on
that horrific day, September 11, 2001, when all
our lives changed dramatically. The episode star
is Tim Holmes, the American Red Cross general
auditor. Although not reported, the American Red
Cross lost vehicles and had rescue workers
running for their lives when the towers fell.
Within 48 hours, while bomb threats were received
at the recovery center, American Red Cross
internal auditors were on site working to ensure
that $1 billion, the largest single domestic
donation, was being accounted for and distributed
properly.
The supporting cast involves
our external auditor, KPMG LLP, who consulted
with the audit committee and management on a
weekly basis for six months on how to best
coordinate the activities of more than 1,000
chapters.
My guess is that many of you in
this room would also appear in this episode,
since more than 500 local firms perform audits at
the chapter level. You were all there in the
first week working with American Red Cross units
in your community, ensuring that all was well.
You sent us your best and helped us develop
better financial systems.
The next episode would feature
Nita Clyde from Texas. When approached, Nita
agreed to take on the chairmanship of the
September 11 Oversight Commission, whose
responsibility was to see that over $300 million
in funds was distributed properly. Nita has never
flinched, earning the respect of all, and today
still works tirelessly to see the funds are used
appropriately.
What is the result of all these
CPAs giving their very best when times are at
their very worst? Well, last December 26, when
the horrible tsunami hit, again the world
responded with unprecedented generosity, and your
work paid off. People worldwide voted with their
dollars and gave the International and American
Red Cross and Red Crescent movements almost $1.4
billion.
The American Red Cross was one
of only two charities that received an A-plus
rating from a watchdog organization on its
handling of the tsunami disaster donations. As
much as the disaster workers in the field, it is
the hundreds of CPA professionals who helped the
American Red Cross process and distribute
donations that resulted in that A-plus rating.
Most television shows have
spinoffs and I have an idea for one as well. It
would star Barry Melancon, who challenged us to
look past the numbers. I took that advice to
heart. Dr. Robert Ashcraft, an outstanding
professor from Arizona State University (ASU) and
a fellow American Red Crosser, and I were
expressing our frustration about the quality of
boards and executives in the nonprofit sector. We
concluded there needed to be a place where those
wanting to serve on boards of nonprofits could go
for training in partnership with executive
directors. With help from the W.K. Kellogg
Foundation, ASUs Center for Nonprofit
Leadership and Management was born. Thank you,
Barry, for urging us on.
At the American Red Cross an
impressive 95% of the work is done by volunteers,
and our research shows that most people decide to
volunteer when asked by a friend. So, for all of
you who are volunteering in your community, thank
you. For all those not currently volunteering, I
am asking you to please volunteer at a local
charity. Your community will be a better place if
your skills are put to work. There isnt a
charity that wont be stronger if
theres a CPA serving on its board of
directors. Encourage your staff to volunteer; it
just might change their lives in ways they never
imagined. Again, thank you so much. 
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