by Barbara Bisgaier Chairperson
NSC, Audit Committee
The five-member NSC Audit Committee, which I chair, oversees the annual audits of the 16 Erickson-managed communities and the NSC Business Trust. For many years these audits have been performed by PricewaterhouseCoopers and recently – based on PwC’s long experience with the CCRC industry and with NSC communities in particular – the committee decided to retain that firm for another three years, subject to contract terms renegotiation.
PwC plans each year’s audits with the committee and with the Erickson Living Management accounting department and provides monthly updates throughout the process. The audit assures that financial statements are free of material misstatement and identifies any weaknesses or deficiencies.
The lengthy review process allows the NSC Audit Committee to understand issues and trends highlighted by the audits. Drafts of the audits are reviewed by the Committee prior to presentation to the regional audit committees for final approval. Subsequently comments included in the Management Letter, which accompanies the documents, are closely tracked by the Audit Committee and ELM during the course of the year to monitor how they are being addressed.
Additionally, this year the Audit Committee will select an accounting firm to produce each community’s Form 990 (Return of Organization Exempt from Income Tax.) Beginning in 2018 the Audit Committee will be responsible for overseeing the annual preparation of these forms.