Which entity is responsible for annual financial reporting to the governing body?

• A. Individual chapters
• B. The organization’s governing body
• C. External auditors
• D. All members

Answer: (B)

The governing body holds the primary accountability for financial governance. It is the entity with fiduciary responsibility to ensure that a complete, accurate annual financial report is prepared, reviewed, and presented. The person or committee handling the day-to-day preparation (like a treasurer) does the work, but the final duty to receive, scrutinize, and approve the report rests with the organization’s governing body. External auditors provide an independent opinion to the governing body about the accuracy of the statements, but they do not generate the official report themselves. Local chapters and all members may receive financial information, but they are not the party charged with producing or presenting the annual financial report to the governing body.