1. INSPIRE | EQUIP | CONNECT |

2. Agenda What does the book of order say? What is the financial guide and checklist for? How do we use the checklist? What questions/concerns do you have?

3. Book of Order G-3.0113 Finances 2013/2015 Each council shall prepare and adopt a budget to support the church’s mission within its area. A full financial review of all financial books and records shall be conducted every year by a public accountant or committee of members versed in accounting procedures. Reviewers should not be related to the treasurer(s).

4. Financial Review Guide Purpose: to assist congregations that cannot hire a CPA to perform a financial review. Members of the congregation or unaffiliated person can volunteer their time to perform the review. Whoever performs the review CANNOT be related to the Treasurer of the church.

5. Bank/Investment Accounts After the books are closed: Bank Reconciliations are performed. Request from each bank/investment account the account balance, and the authorized signers on the account. Verify Safety Deposit Box access

6. Income Offering counted by two unrelated persons. Review deposit slips for timeliness and compare to secretary/treasurer records. Test a sample of counter’s documentation vs. deposit slips and bank statements for accurate postings of offerings and correct designations. Review the original books of entry for other income and that it is appropriately accounted for. On a test basis conduct donation confirmations.

7. Disbursements Invoices are properly approved. Verify that the cancelled check matches the invoice information. All checks are accounted for. Accounts that are charged are noted on invoice. Invoices greater than 30 days are accrued for. Per capita/mission apportionments are paid accordingly. Procedures in place to account for restricted gifts.

8. Disbursements cont… Designated gifts are paid timely. Disbursements and reimbursements to the petty cash fund are appropriate.

9. Reports Approved budget is included. Controls for over budget expenditures are in place. Policy for restricted funds reviewed. Reports are provided in timely fashion. Report distribution is appropriate. Balance Sheet and Statement of Income/Expense prepared.

10. General Ledger Restricted funds are separated appropriately. Internal controls for receipts and disbursements are reviewed. Verify fund balance from prior year and correct balance is carried forward.

11. Administrative EIN, tax filings, deed to church property, mortgage, and insurance policies are safeguarded. Adequate insurance coverage. Church has separate bond for people handling money. Where and how documents are safeguarded noted, and who has access.

12. Payroll/Tax Records Personnel files are kept confidential and secure. Tax forms are issued timely to all personnel. Payroll tax deposits and timely remittances to government occur. Proper 1099 filing and approvals for persons paid over $600 (contracts/honorariums). Test that the appropriate amount of tax is withheld. Vouch payroll and tax records coincide with actual disbursements made.

13. Recommendations/Reporting The Auditors/Auditing Committee (circle one) has examined the accounts listed on the front side, reviewed procedures of counting and accounting under the current Book of Order G- 3.0113, reconciled receipts and disbursements with bank deposits and bank balances, and has found the balances displayed correctly, presented fairly, with proper procedures, and records properly kept, except as noted below:

14. Recommendations/ Reporting cont… Make sure to sign and distribute to the moderator of session, clerk of session, and all session members, committee on finance and/or board of trustees.

15. Sample Sizes  Annual performance of a control – Sample size of one;  Quarterly performance of a control – Sample size of two consecutive quarters;  Monthly performance of a control – Sample size of two to five consecutive months;  Weekly performance of a control – Sample size of five to fifteen consecutive weeks;  Daily performance of a control – Sample size of 25 to 40 consecutive days;  Control performance of multiple times per day – Sample size of 25 to 60 consecutive control performances;  System (application) control shall have a sample size of one control performance.

16. Questions?