1. Best Practices Using Shelby Systems’ New Cloud Financials
Welcome and introduction of the Session and who I am
Alfred Johnson
Sales Manager

2. Internal Controls
Office policy governing processes, procedures and/or practices
6 specific topics – will start with the money

3. Money Handling Offerings counted by multiple people
Deposit offerings in a timely manner
Get few different ways people count, enter, and deposit Sunday offerings
Is there a different process of collection of other funds?
*2 points follow
*Illustrate examples from past trainings – bad ways to do it.
CLICK

4. Check Writing and Approvals
Check signers not involved with record keeping
Use of supporting documents for check signers
There are bills to pay. So, there may be a number of steps to the entire process.
Bills arrive and need to be paid.
Enter bill into software to be paid
Provide a list and get approval to pay approved bills
Print Checks
Sign Checks
Mail / Distribute checks
Keep copy of bill/invoice with payment (copy or electronic)
Invoices are a bit different.
Purchase order – with approval?
Who proofs the invoice against items or services received?
Is there shipping charges? If so, are they checked against the actual charge?
Is the math on the invoice correct?
What is the expected payment day or due date? What does it matter?
Who then approves payment?
Enter Invoices – follow same procedure above?
But end at the same spot –
CLICK – Someone signs the checks
CLICK – Verification of what they are signing provided?
ALSO – EFT need same type of procedures

5. Bank Reconciliation Regularly completed and retained for future audits
Not done by same person writing checks
General ledger reconciled with all sub ledgers
Who enjoys Reconciling a checking account?
A necessary task – and sometimes may not be easy. - Mention personal experiences
Try not to get behind – putting it off could make it harder to complete
CLICK – when done, print report and keep with the bank statement
CLICK – it is a bad idea to let the AP person and/or Check Signer to also reconcile the account
Off topic, but just adding it here --
CLICK – Sub ledgers should be reconciled with each sub ledger
Provide a couple of examples
EXTRA NOTE – Make sure ALL accounts are being reconciled and reported

6. Audits Internal Annual Let’s start with Internal Audit
CLICK– Any of your churches conduct Internal Audits?
Church should provide an Internal Audit Checklist. Find several suggestions on Internet
But, I think it should start with a examination of the reports provided to committees and the congregation
Proceed along to checking on topics we have already covered
Include a review of the latest outside audit and check to see if its recommendations / changes have been addressed
Check Fixed Assets
Check on insurance, property, liability, etc.
Review Employee policies, Employee Policy Manual, required identifications, timely filing of tax related forms, etc.
CLICK – Dread Annual outside audit?
If you have all of your internal controls properly aligned and enforced, COA designed correctly, books in balance, completed changes requested in prior audits, then you should be good.
The more you have done correctly, the less time it will take and the less it should cost.

7. Screenings Check with previous employers
Watch for embezzlement history
Do Background screening
CLICK – Check with previous employers – JCPenney Story
CLICK – Read somewhere that 70% are repeat embezlers
Brotherhood Mutual handout

8. Cloud vs. Client Server
Cover 8 topics on handout

9. Chart of Accounts Design
Fund accounting
Account levels / segments
Mention Church Executive Article Handout
Cover Fund Accounting as time allows – Principles of closing accounts
GAAP – Generally Accepted Accounting Principles
FASB – Financial Accounting Standards Board
AICPA – American Institute of Certified Public Accountants
CLICK – Closing accounts
CLICK – COA design discussion

10. Stakeholder Reports Finance Committee Congregation Ministry Leaders
Internal Auditors
Short Discussion on Special Reports
CLICK – Finance Committee
CLICK – Congregation
CLICK – Ministry Leaders
CLICK – Internal Auditors

11. Accrual vs. Cash Differences Advantages of each
CLICK – Describe differences
CLICK – Advantages of each
Small Church – cash basis easier to manage
Cash flow problems – really need to be on Accrual
AR?

12. Managing Payroll Should you outsource Taxes Reports
CLICK – How many of you outsource your payroll?
Collect reasons
Balance time to process outsourced vs. in house processes
Transition to Shelby Payroll
CLICK – Taxes
CLICK – Reports

13. Questions?
Thanks for attending