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Setting Up a Church Financial Statement - Excel

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Setting Up a Church Financial Statement - Excel Powered By Docstoc
					         A          B           C                                            D                                               E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                       LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                         4/21      10/21       Due Date
3
4                                       Step 1. Ongoing Risk Identification and Assessment                              Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                      Description of Internal Control Procedures:                      Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                   Monitoring



                                                                                                                                                                                                         Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                          Describe existing procedures, limits, systems and controls;                                                                             Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                Risk


6 #                                      incl. description of GL account, report and/or file name                       "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
8    A              2                  Sec. II - OTHER CONTROLS - PERIODIC MONITORING
9      A-10         2                  BANK / CHURCH OPERATING ACCOUNTS                                                                  A                           A
     A-11           2                  Policies - Maintain written policies and proced's covering bank accounts
                                       and related activities.
                                       - Responsibility for updating the proced's:
                                       - Date the proced's were last updated:
10                                     - Read and consider compliance while monitoring controls.                                         A                           A
11   A-12.1         2           H      All depart'l expenses flow through one operating bank account.                                    A                           A
     A-12.2         2           H      Minimum number of other small $ bank acct's are all recorded in the GL
                                       and subject to reconciliation/review per Section 1.
12                                     -List any accounts that are not recorded in the GL:                                               A                           A
     A-13           2           F      Reconcile all bank checking and savings accounts monthly;
                                       - Prepared, and/or at least reviewed, by an independent person not
                                       involved in the cash receipts/disb. functions.
13                                     -Explain reconciling items, and investigate checks > 3 mo's old.                                  A                           A
     A-20           2           H      Authorization - All cash withdrawals require two signatures and
                                       approval;
14                                     List authorized individuals:                                                                      A                           A
     A-21           2           H      Transfers of large sums of money into or out of different accounts require
                                       two signatures and approval.
15                                     - List auth. individuals:                                                                         A                           A
     A-22           2           H      Transfers among bank accounts on GL are properly authorized;
16                                     - journal entries are reviewed by another person.                                                 A                           A
     A-23.1         2           H      Board resolution is approved granting individ's specific authority and
                                       limits to conduct transactions on behalf of church and act as a signer in
                                       checking or savings accounts and/or loans.
17                                     - Provide to bank.                                                                                A                           A
     A-23.2         2           H      Formally restrict transfers to only church bank acct's, or to specified other
                                       acct's such as for payroll, and prohibiting cash withdrawals over $X,
                                       without second approval from a specified church leader.
18                                     - Establish restrictions in writing with bank.
     A-23.3         2           H      Consider establishing procedures for the bank to call-back to a specified
                                       phone number and church leader to verify certain types of bank account
19                                     activity noted above.
     A-24           2                  Separate bank accounts are maintained for temporary or permanently
20                                     restricted accounts.                                                                              A                           A
     A-30           2           H      Petty cash fund is used only for minor disbursements of cash which are
                                       not paid by check, and limited to $200.
21                                     - no other cash is stored at the church                                                           A                           A
     A-31           2                  Vouchers, and support such as receipts, are prepared for each
22                                     disbursement from the petty cash fund.                                                            A                           A



         7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                             Page 1 of 10
            A      B           C                                          D                                              E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                   LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                     4/21      10/21       Due Date
3
4                                      Step 1. Ongoing Risk Identification and Assessment                           Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                    Description of Internal Control Procedures:                    Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                  Monitoring



                                                                                                                                                                                                     Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                         Describe existing procedures, limits, systems and controls;                                                                          Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                               Risk


6 #                                     incl. description of GL account, report and/or file name                    "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     A-32          2                  Petty cash fund is periodically replenished, and balanced against the
23                                    vouchers/receipts.                                                                             A                           A
     A-33          2                  Petty cash fund is reconciled on a surprise basis by an independent person
24                                    at least once a year.                                                                          A                           A
     A-40          2           H      Physical security precautions
                                      - Physical access and traffic to the business office is restricted;
                                      - Door(s) locked when access is not monitored by an up-front receptionist,
25                                    and at all times when unattended and after hours.                                              A                           A
     A-41          2           H      The business office door lock is keyed separate from other entrance keys.
                                      - Keep a list of who has been given keys, when, and for what activities

26                                                                                                                                   A                           A
     A-42          2           H      Sensitive accounting records are properly stored in a restricted-access,
27                                    locked cabinet or location.                                                                    A                           A
     A-43          2           F      Checkbook and unused blank checks are physically safeguarded at all
                                      times, and stored in a restricted-access, locked cabinet, preferably under
28                                    dual control.                                                                                  A                           A
     A-44          2           H      Petty cash fund is always stored in a restricted-access, locked
                                      cabinet/drawer, and access is controlled by a single or limited number of
29                                    custodians (Business Admin.).                                                                  A                           A
30    B-10         2                  CASH RECEIPTS - HANDLING / PROCESSING
31 B-10.1          2                  1. General offerings:                                                                          A                           A
   B-11            2                  Policies - Maintain written policies and procedures covering cash
                                      handling, recording and safeguarding.
                                      - Responsibility for updating the procedures:
                                      - Date the procedures were last updated:
32                                    - Read and consider compliance while monitoring controls.                                      A                           A
     B-12          2           F      Maintain proper segregation of duties over cash receipt tasks (segregating
                                      collection, counting, depositing, general ledger recording and bank
33                                    reconciliations).                                                                              A                           A
     B-13          2           F      Document who has cash handling authority.
                                      Ensure that the people who count and handle the money are reasonably
34                                    qualified and of good character. Check references.                                             A                           A
     B-14          2           F      Ensure that collections received are promptly recorded and deposited -
35                                    discussed further below.                                                                       A                           A
     B-15          2           H      Provide training to all personnel on count procedures and proper
                                      safeguarding;
                                      - Ensure proper supervision of all personnel involved during the cash
36                                    handling process.                                                                              A                           A
37   B-16          2           F      Fund-raising funds are kept separate.                                                          A                           A




        7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                          Page 2 of 10
            A       B           C                                           D                                               E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                      LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                        4/21      10/21       Due Date
3
4                                       Step 1. Ongoing Risk Identification and Assessment                             Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                      Description of Internal Control Procedures:                     Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                   Monitoring



                                                                                                                                                                                                        Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                          Describe existing procedures, limits, systems and controls;                                                                            Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                Risk


6 #                                      incl. description of GL account, report and/or file name                      "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     B-17.1         2                  Contributions are recorded in the correct accounting period in the GL, and
                                       membership system, especially at year-end.
                                       - Contributions are not held open in order to manipulate revenues and
38                                     budgets.                                                                                         A                           A
     B-17.2         2                  Describe the policy for holding open the period for recording contributions
39                                     after month or year-end:                                                                         A                           A
40   B-20           2                  Collectors/ushers:                                                                               A                           A
     B-21           2                  At least two members of the offering team are in custody of the offering
                                       until it is deposited in the bank, placed in a night depository, or in the
41                                     church's safe?                                                                                   A                           A
     B-22           2           F      All cash/checks are placed in locked-zipper deposit bags, witnessed under
                                       dual control;
                                       - and immediately locked-up (placed in restricted-access, fire-proof safe)
42                                     until brought to bank and/or formally counted.                                                   A                           A
     B-23           2                  Deposit bags are removed from the safe under dual control and logged;
                                       - Brought to bank by two people in disguised carrying case;
                                       - Deposited in bank night drop promptly after the last service (for security
                                       and counting next day at bank, if possible).
43                                                                                                                                      A                           A
     B-24           2                  Contributions dropped-off or mailed-in, and Sunday school offerings, etc
                                       must also be placed in the safe.
44                                     - List all of the sources of contribution cash receipts:                                         A                           A
     B-25.          2           H      Contributions received electronically are promptly recorded (if vendor
                                       manages the receipts and submits to church); and reconciled to a report of
                                       total and individual contributions received from the vendor. Segregate
45                                     duties.                                                                                          A                           A
46   B-30           2                  Counters:                                                                                        A                           A
     B-31           2           F      At least two people maintain control over all offering cash and checks at
                                       all times, including preparing the cash for counting, up until the cash is
47                                     formally deposited.                                                                              A                           A
48   B-32           2           F      Cash is counted in a secured area with restricted access.                                        A                           A
     B-33.1         2                  Rotate the ushers'/counters' duties so the same people are not handling the
                                       funds each week.
                                       - Maintain schedule of monthly rotations by group, w/ supervisor;
                                       - The persons counting the money should not include a pastor or the
49                                     church treasurer.                                                                                A                           A
     B-33.2         2           F      Discourage the use of relatives to count and record collections to help
                                       ensure proper segregation of duties.
50                                     - Prohibit relatives counting if they are the only counters present.                             A                           A




         7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                            Page 3 of 10
            A       B           C                                           D                                               E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                      LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                        4/21      10/21       Due Date
3
4                                       Step 1. Ongoing Risk Identification and Assessment                             Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                      Description of Internal Control Procedures:                     Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                   Monitoring



                                                                                                                                                                                                        Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                          Describe existing procedures, limits, systems and controls;                                                                            Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                Risk


6 #                                      incl. description of GL account, report and/or file name                      "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     B-34.1         2                  Ensure the contents of the offering envelopes are identical to the amounts
                                       written on the envelopes by the members.
                                       - Adjust the envelopes for differences; dual verify and initial material
51                                     diff's, and consider informing member.                                                           A                           A
     B-34.2         2           F      Immediately place restrictive "For Deposit Only" endorsement on all
                                       checks (including offerings, mail-ins and other sources), to prevent
52                                     diverting checks.                                                                                A                           A
     B-35           2           F      Use the standardized count form to document all cash handling;
                                       - Separately document the funds received by cash and checks (prepare a
                                       tape list of all checks);
                                       - Prepare separate deposit amounts for restricted and unrestricted account
53                                     receipts.                                                                                        A                           A
     B-36.1         2                  Count sheet totals are verified and signed-off by at least two people;
                                       - Deposit tickets are prepared and verified and signed-off by the same two
                                       people;
54                                     - Reconcile the check log against the deposit tickets.                                           A                           A
     B-36.2         2                  Duplicate deposit slips are prepared; one accompanies the deposit, the
                                       other is delivered to the individual reconciling the bank accounts and
55                                     deposits.                                                                                        A                           A
     B-36.3         2                  Separate checks/envelopes and other lists of restricted fund contributions
                                       are prepared to facilitate recording in membership system;
                                       - Compare restricted contribution totals to the count sheet and separate
                                       deposit tickets if applicable.
56                                                                                                                                      A                           A
     B-37.1         2                  Other contribution receipts - Incoming-mail and in-office contrib's are
                                       handled by people who are not responsible for the accounting records;
                                       - Preferably in the presence of two authorized persons who create and sign
                                       a dated list of the funds received.
57                                                                                                                                      A                           A
     B-37.2         2                  Reconcile this list of funds received by mail or in-office to the bank
58                                     deposit by someone not handling the money.                                                       A                           A
     B-38           2                  Sunday school offerings are properly recorded and delivered to the money
59                                     counters.                                                                                        A                           A
60   B-40           2                  Depositing of funds:                                                                             A                           A
     B-41           2           H      All cash is deposited intact (without any “temporary” withdrawals) in a
                                       bank account immediately after counting.
                                       - If offerings are counted at the church, the deposit is brought to the bank
61                                     by two people in a disguised carrying case.                                                      A                           A
62   B-50           2                  Non-contribution cash and other receipts:                                                        A                           A




         7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                            Page 4 of 10
            A        B           C                                            D                                                E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                         LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                           4/21      10/21       Due Date
3
4                                        Step 1. Ongoing Risk Identification and Assessment                               Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                       Description of Internal Control Procedures:                       Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                    Monitoring



                                                                                                                                                                                                           Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                           Describe existing procedures, limits, systems and controls;                                                                              Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                 Risk


6 #                                       incl. description of GL account, report and/or file name                        "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     B-51            2                  Non-contribution program revenues (e.g. church meetings, rental income,
                                        food sales, etc.) are promptly placed in safe along with a deposit ticket and
                                        explanation for where to record prior.
63                                      - List all other sources of non-contribution cash receipts:                                        A                           A
     B-52            2                  The handling of other receipts of cash must always be controlled by at
64                                      least two people.                                                                                  A                           A
     B-53            2                  Non-contribution revenues are processed with other offerings per above,
                                        and are listed on the count sheets with project codes as part of the overall
65                                      deposit processing.                                                                                A                           A
     B-54            2           H      Tickets are sold rather than receiving cash for larger public events, such as
                                        festivals;
                                        - Limit individuals selling tickets; reconcile cash received to ticket totals;
66                                      immediately deposit funds.                                                                         A                           A
     B-55            2           H      School tuition and registration amounts should be paid by check, made
                                        payable to the church/school, not cash.
                                        - Record tuition amounts in subsystem and compare to budgeted revenue
67                                      amounts; reconcile outstanding balance in deferred tuition.                                        A                           A
     B-56            2                  Are there written control policies over misc. event deposits such as
68                                      women's events, men's retreats, etc.                                                               A                           A
69   B-60            2                  Donation records - restricted contributions                                                        A                           A
     B-61            2
                                        Restricted contributions are identified on the count sheet or other form at
                                        the time of counting, including GL account coding for net asset or liability
70                                      acct's (use "cheat sheet" of restricted GL acct codes).                                            A                           A
     B-62            2                  Enter cash contributions from count sheet / collection report into
                                        membership system; include a memo descriptor.
71                                      - or scan envelopes.                                                                               A                           A
     B-63            2                  Prepare weekly membership report of total contribution deposits.
72                                      Maintain with count sheets.                                                                        A                           A
     B-64.1          2           x      Members are encouraged to use offering envelopes with blocks to indicate
                                        donor restrictions.
                                        - envelopes with pre-assigned account numbers,
73                                      - generic blank envelopes available in the pews.                                                   A                           A
     B-64.2          2           x      Members are encouraged to use checks in making their offerings (and
74                                      other gifts as well).                                                                              A                           A
                     2                  All "special" offerings collected for outside organizations, speakers, etc.
75 B-65                                 are remitted directly to that organization and not the individual.                                 A                           A
76   B-70            2                  Restricted contributions - donor compliance and receipting                                         A                           A
     B-71.1          2           F      Periodic contribution statements are mailed to members. See also separate
77                                      IRS/taxes section.                                                                                 A                           A




          7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                              Page 5 of 10
            A          B           C                                           D                                               E            F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                         LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                           4/21      10/21       Due Date
3
4                                          Step 1. Ongoing Risk Identification and Assessment                             Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                         Description of Internal Control Procedures:                     Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                      Monitoring



                                                                                                                                                                                                           Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                             Describe existing procedures, limits, systems and controls;                                                                            Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                   Risk


6 #                                         incl. description of GL account, report and/or file name                      "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     B-71.2            2                  Members are instructed to report any irregularities or errors in their
                                          contribution stmt's to the audit committee, not the business administrator
78                                        or those involved in recording contributions.                                                    A                           A
     B-72              2                  Activity and balances in restricted funds/accounts is reviewed monthly to
79                                        help ensure compliance with donor restrictions.                                                  A                           A
     B-73              2                  Restricted funds are held for the intended purpose(s) and not spent on
                                          operating needs.
                                          - Separate bank accounts are maintained for restricted accounts if possible.
80                                                                                                                                         A                           A
     B-74              2                  Identify any carryover restricted fund balances, focusing on whether
81                                        negative carryover balances should be funded/expensed.                                           A                           A
82   J-10              2                  CASH DISBURSEMENTS AND CURRENT LIAB.                                                             A                           A
     J-11              2                  Policies - Maintain written policies and procedures covering expense
                                          authorization and cash disbursement activities.
                                          - Responsibility for updating the procedures:
83                                        - Date the procedures were last updated:                                                         A                           A
     J-12              2                  Seg. of duties is maintained over cash disbursement tasks:
                                          - expense authorization,
                                          - Invoice and check processing/preparation,
                                          - check signing, mailing and
84                                        - bank reconciliation functions.                                                                 A                           A
     J-20              2           H      Expense authorization
                                          All departmental expenses are paid out of one primary bank account,
85                                        managed by the Business Admin. and Board.                                                        A                           A
     J-21.1            2           H      All non-routine expenses (not having a standing authorization) are paid
                                          based on a standard authorization form approved by the Ministry staff, and
                                          supported by invoices/other documentation.
86                                        - Persons authorized to approve expenses are clearly identified.                                 A                           A
     J-21.2            2           H      List types of payments not requiring an authorization form, and methods
87                                        for approving/determining reasonableness of expense:                                             A                           A
     J-22              2           F      Credit card policy sets acct limits for credit cards and users, for business
                                          use only;
                                          - Payment of credit card stmt's is supported by receipts and authorized by
                                          department heads and/or church leader.
88                                        Describe method for approval:                                                                    A                           A
     J-23              2           H      Obtain second approval by the Bus. Admin. for all check requests in the
89                                        specified dedicated / restricted accounts:                                                       A                           A
     J-24              2           H      Purchases > $___ pre-approved by Bus. Admin (Treasurer);
                                          Purchases > $___ pre-approved by the Board.
90                                        - List types of exp's requiring pre-approval before ordering:                                    A                           A
     J-25              2           F      Competitive bids are required for major purchases and contracts
91                                        exceeding $.                                                                                     A                           A


            7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                            Page 6 of 10
             A          B           C                                          D                                              E            F           G              H      I      J          K     L      M                                   N

1     Church Name                                                                                                       LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                          4/21      10/21       Due Date
3
4                                           Step 1. Ongoing Risk Identification and Assessment                           Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                         Description of Internal Control Procedures:                    Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                       Monitoring



                                                                                                                                                                                                          Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                              Describe existing procedures, limits, systems and controls;                                                                          Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                    Risk


6 #                                          incl. description of GL account, report and/or file name                    "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
      J-30              2           H      Invoice processing - Bookkeeper reviews authorization form for
92                                         completeness, approvals and account coding / restricted accounts.                              A                           A
      J-31              2           H      Invoice is checked for accuracy before setting up for payment;
93                                         - compared to original purchase order or bid, if applicable.                                   A                           A
      J-32              2                  Unpaid invoices are promptly placed in an unpaid invoice file to establish
                                           control for payment;
                                           - and entered into the accounts payable system,
                                           - or entered into a schedule of unpaid invoices including vendor name,
94                                         invoice date, and due date, if material.                                                       A                           A
      J-33              2                  Periodic statements from vendors are reviewed, and compared against the
95                                         unpaid invoice file to avoid double payments.                                                  A                           A
      J-40              2                  Check processing and preparation - Bookkeeper periodically prepares
                                           checks based on accounts payable system or unpaid invoice file, and
96                                         authorization forms/invoices.                                                                  A                           A
      J-41              2                  Ensure that the next available check number in the system matches next
97                                         available physical check.                                                                      A                           A
      J-42              2                  Print the check register and submit to the Bus. Admin along with the
98                                         checks for approval and signature.                                                             A                           A
      J-43              2
                                           Record payments in the accounts payable register, and/or supporting
                                           invoices/doc's are marked paid when checks are issued to prevent
                                           subsequent use or double payment.
99                                         - invoices and authorization forms are promptly filed according to vendor.                     A                           A
      J-44              2                  Enter manual expense and petty cash payments based upon authorization
100                                        or on-going requirement (church mtg's, etc.)                                                   A                           A
      J-45              2
                                           The accounts payable register is periodically reconciled with the general
101                                        ledger by a person independent of the invoice processing function.                             A                           A
      J-46              2                  All cash disbursements, except for minor petty cash items, are paid using
102                                        pre-numbered checks.                                                                           A                           A
      J-47              2           F      Checks are always made out to a vendor, org. or specific individ, and
                                           agree to the vendor name on the underlying invoice.
103                                        - Prohibit checks payable to "cash"                                                            A                           A
      J-48              2                  All voided and spoiled checks are marked and retained for future
                                           reference and integrity of numerical sequencing.
104                                        - Returned checks are re-processed accordingly.                                                A                           A
      J-50.1            2           H      Check approval and signing
                                           Bus. Admin. (Treasurer) reviews check, authorization form and support
                                           for approvals and overall reasonableness of request, and account coding /
105                                        restricted accounts;                                                                           A                           A
      J-50.2            2           F      - Sign checks only when ALL required info is entered and supporting doc's
106                                        are attached.                                                                                  A                           A


             7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                          Page 7 of 10
             A          B           C                                           D                                               E            F           G              H      I      J          K     L      M                                   N

1     Church Name                                                                                                         LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                            4/21      10/21       Due Date
3
4                                           Step 1. Ongoing Risk Identification and Assessment                             Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                          Description of Internal Control Procedures:                     Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                       Monitoring



                                                                                                                                                                                                            Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                              Describe existing procedures, limits, systems and controls;                                                                            Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                    Risk


6 #                                          incl. description of GL account, report and/or file name                      "Performer"     Freq.    "Reviewer"         Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
      J-51.1            2           F      - Two signatures are required on non-routine checks > $_____.
                                           -Both signers review and approve reasonableness of supporting
107                                        documentation for the disbursement before signing the check.                                     A                           A
108   J-51.2            2                  List routine expenses that do not require a second signature:                                    A                           A
      J-52.1            2           H      Check register of all checks prepared is reviewed and approved by Bus.
109                                        Admin and is balanced for completeness with signed checks.                                       A                           A
      J-52.2            2                  Print SS warning reports of funds out-of-balance (checks being processed)
110                                        and forward to Bus. Admin (Treasurer).                                                           A                           A
      J-53              2                  Persons authorized to sign checks are prohibited from making accounting
                                           entries.
111                                        - List authorized signers:                                                                       A                           A
      J-54              2
112                                        Signed checks are mailed promptly by an individual other than a signer.                          A                           A
      J-55              2           F      Blank checks are not pre-signed in advance.
                                           - may periodically complete the vendor name and date, but leave the
113                                        amount blank for smaller purchases.                                                              A                           A
      J-60              2           H      Employee expense reimbursements - are made per an "accountable
                                           reimbursement plan" requiring substantiation on a standard request form,
                                           approved by department head, within 60 days of incurring the expense.
114                                                                                                                                         A                           A
      J-61.1            2                  Substantiation includes original receipts, documentation of the date, place,
115                                        amount, and purpose of expenditure.                                                              A                           A
      J-61.2            2           F      Prohibit personal purchases using church funds:
                                           - closely examine expense reports, credit card charges and telephone bills
116                                        to ensure used for official church business only.                                                A                           A
      J-62              2                  Discretionary expense accounts are prohibited, or restricted to a limited
                                           amount for selected key leaders (such as senior pastor).
117                                        - List all discretionary accounts and amounts/limits:                                            A                           A
      J-70              2                  Benevolence funds - are subject to oversight and approval of activities by
                                           an authorized committee, incl. reconciling and 2nd review of the bank
                                           account.
                                           - List all benevolence accounts and amounts/limits:
118                                        - Are benevolence accounts included in the GL?                                                   A                           A
119




             7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 2 - Procedures / 8/12/2011                                                                                                                                                            Page 8 of 10
            A       B           C                                           D                                                   E         F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                       LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                         4/21      10/21       Due Date
3
4 12-3-08                               Step 1. Ongoing Risk Identification and Assessment                              Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                      Description of Internal Control Procedures:                      Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                   Monitoring



                                                                                                                                                                                                         Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                          Describe existing procedures, limits, systems and controls;                                                                             Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                Risk


6 #                                      incl. description of GL account, report and/or file name                       "Performer"     Freq.     "Reviewer"        Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
8    A              1                  Sec. I - CONTROLS REQUIRING ON-GOING MONITORING
9        A          1                  BANK / CHURCH OPERATING ACCOUNTS
     A-01                       H      Reconcile all bank acct's from the GL to the bank stmt's.
10                  1                  - Separately list all accounts in the rows below:                               Bkkper            M      Treasurer/ BA        M
11 A-01.1           1           H      -Reconcile Checking-Church acct. to GL #XXXX.                                   Bkkper            M      Treasurer/ BA        M                                              Update the various accounts
12 A-01.2           1           H      -Reconcile Checking-School acct. to GL #XXXX.                                   Bkkper            M      Treasurer/ BA        M
13 A-01.3           1           H      -Reconcile (list other) acct. to GL #XXXX.                                      Bkkper            M      Treasurer/ BA        M
14 A-01.9           1                  -Reconcile benevolence bank account to GL #XXX.                                 Ben Comm          M      Treasurer/ BA        M
   A-02                         H      Agree savings and other investments to the general ledger, record earnings
                                       (dividends/ interest income) and trace transfers.
15                  1                  - List all accounts below:                                                      Bkkper            M      Treasurer/ BA        M
16   A-02.1         1           H      -Reconcile savings acct. to GL#XXXX.                                            Bkkper            M      Treasurer/ BA        M
     A-03                       F      Bank checking/savings acct stmt's are reviewed (or viewed on-line) by 2nd
                                       person not involved in check writing;
                                       - Scan cancelled checks for reasonable. of payee and amounts, and                                                                                                            Consider that GL descriptions may not be
17                  1                  existence of dual signatures for >$X, withdrawals / transfers.                  Treasurer         M      Audit Comm           M                                              accurate, especially if hiding fraud
     A-04                       H      Prepare combined report listing all bank/cash accounts and balances, no
                                       matter who or what dep't they are controlled or reconciled by; review for
18                  1                  reasonableness.                                                                 Bus Admin         M      Treasurer            M
     A-05                              Compare balances in restricted checking and savings acct's to
19                  1                  corresponding net asset balances.                                               Bus Admin         M      Treasurer           M
20   A-06           1                  Reconcile Petty Cash to receipts on a surprise basis GL #XXX.                   Bkkper            SA     Bus Admin           SA
     A-07                              Periodically verify numerical integrity and physical security of the blank
21                  1                  check stock.                                                                    Bkkper            SA     Bus Admin           SA
     A-08                       H      Periodically verify authorized signers on all bank accounts;
                                       - update Board resolution granting individ's specific authority and limits to
                                       act as a signer in checking or savings accounts and/or loans. Provide to
22                  1                  bank.                                                                           Bus Admin         SA     Treasurer           SA
23       B          1                  CASH RECEIPTS / CONTRIBUTIONS
     B-01.1         1           F      Reconcile cash receipts daily (or next day after deposit) from the count
                                       sheets or other receipt logs, to recording in the bank stmt's and deposit
                                       tickets (on-line, or at month-end with bank stmt);
24                                     - By someone not involved in counting.                                          Bkkper            D      Bus Admin            W
     B-01.2         1           H      Reconcile total deposits from membership report totals to:
25                                     1) bank statements / deposit tickets, and 2) GL.                                Bkkper            W      Bus Admin            Q
     B-01.3         1           H      Reconcile contributions received electronically to the total and individual
                                       contributions received from the vendor, if applicable, or bank statement.
26                                                                                                              Bkkper                   W      Bus Admin            Q
     B-02           1           H      Reconcile total contrib. revenues by type from membership totals reports
27                                     to GL revenue acct's.                                                    Fin Sec'y                Q      Bus Admin            Q
     B-03           1           H      Monitor temporary and permanently restricted cash balances and agree to
28                                     the amount of restricted net assets.                                     Fin Sec'y                M      Bus Admin            M


         7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 1 - Controls / 8/12/2011                                                                                                                                                               Page 9 of 10
            A          B           C                                           D                                                 E         F           G              H      I      J          K     L      M                                   N

1    Church Name                                                                                                        LeiningerCPA, Ltd. / www.Leiningercpa.com                 1st Q      3rd Q
2 Financial Control Chart                                                                                                                                                          4/21      10/21       Due Date
3
4 12-3-08                                  Step 1. Ongoing Risk Identification and Assessment                            Step 2. Define Control Responsibilities                 Step 3. Monitoring and Reporting
5                                                         Description of Internal Control Procedures:                    Individual Responsible and Frequency for:                Self-Assessment:                                Monitoring Comments:
                      Monitoring



                                                                                                                                                                                                          Ref. to    Describe Status of Controls / Unresolved Items,
  Control Ref.                             Describe existing procedures, limits, systems and controls;                                                                           Track / Document         Proc.      - Describe Plan for Resolution of Exceptions
                                   Risk


6 #                                         incl. description of GL account, report and/or file name                     "Performer"     Freq.     "Reviewer"        Freq.         Performance           Descript.   List Target Date / Last Performed, if applicable.
7
     B-04              1           H      Monitor on-going compliance (money spent) with donor restricted
                                          contributions.
                                          - Monitor restricted acct balances, including whether negative carryover
                                          balances are reasonable and/or should be funded or expensed.
29                                                                                                                      Bus Admin         Q      Treasurer            Q
30   B-05              1           F      Periodic contribution statements are mailed to members.                       Fin Sec'y         Q      Bus Admin            Q
     B-06              1                  Periodically inquire if all contributions are recorded in the correct
                                          accounting period in the GL, and membership system, especially at year-
                                          end.
31                                        - If not, discuss the circumstances.                                          Treasurer         Q      Bus Admin            Q
32          J          1                  CASH DISBURSEMENTS AND CURRENT LIAB.
     J-01                          H      Review cash disbursement listing or other report listing all expenses paid
33                     1                  during the month for overall reasonableness and authorization.                Bus Admin         M      Treasurer            M
     J-02                                 Reconcile accounts payable system report totals with GL.
34                     1                  - Ensure accounts payable are complete, especially at year-end.               Bkkper            M      Bus Admin            M
     J-03                          H      Balance accrued payroll / other withholding accounts with amounts
35                     1                  actually paid - GL #xxxx, xxxx.                                               Bus Admin         Q      Treasurer            Q
     J-04                                 Reconcile deferred school tuition.
                                          - Determine reasonableness of tuition and registration revenue amounts
36                     1                  compared to budget.                                                           Bkkper            M      Bus Admin            Q
     J-05.1                        H      Periodically inquire whether there are any unpaid invoices that are past
                                          due, or any disputed amounts with vendors.
37                     1                  - If yes, determine the circumstances.                                        Bus Admin         Q      Treasurer            Q
     J-05.2                        H      Periodically review / inquire whether all payroll and related taxes, and
                                          sales taxes, have been paid current.
38                     1                  - Monitor payment of withholding taxes by payroll vendor.                     Bus Admin         Q      Treasurer            Q
     J-05.3                               Periodically inquire if all expenses are recorded in the correct accounting
                                          period in the GL, especially at year-end.
39                     1                  - If not, discuss the circumstances.                                          Bus Admin         A      Treasurer            A
40




            7badeeda-da8c-47cd-8db5-d5cb2f2ba14c.xls / FCC SEC 1 - Controls / 8/12/2011                                                                                                                                                             Page 10 of 10

				
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Description: Setting Up a Church Financial Statement document sample