Auditor

In our current society, transparency and accountability are essential, particularly within religious organizations where trust and integrity are crucial for building a robust community. With extensive experience in auditing and a dedication to supporting religious institutions, I believe my services can help uphold the financial integrity and accountability of your church.

As you may be aware, overseeing a church’s financial records can be complex and demanding. With numerous transactions occurring regularly, it’s vital to have a system in place that guarantees accuracy, compliance, and transparency. That’s where I come in.

This structured review process helps maintain financial integrity and ensures the church’s assets are managed responsibly. By following these procedures, I aim to enhance the financial accountability and integrity of your church, fostering trust within the community.

The following outline of procedures aligns with the General Council on Finance and Administration (GCFA) guidelines for church audits.

Financial Document Collection and Verification

Year-End and Year-to-Date Financials: Obtain the previous year’s balance sheet and income/expense statement, as well as the current year-to-date balance sheet and income statement. Cross-reference each figure with the church’s general ledger to confirm consistency with the statements presented to the Finance Committee.

Account Balance Analysis

Unusual Account Balances: Review the balance sheet at the end of the test period to identify any anomalies, such as credit balances in asset accounts. Seek clarification from the church accountant and include a summary of these explanations in the Finance Committee report.

Accumulated Deficit Review

Funding Source Inquiry: If an accumulated deficit appears on the balance sheet, consult with the accountant to determine the sources of funding that contributed to this deficit. Document these findings in your final report.

Cash Balance Reconciliation

Bank Statement Review: Gather monthly bank statements and reconciliations for each church account covering the test period. Verify bank balances against the statements and general ledger. Confirm balances directly with the bank. Investigate any discrepancies in deposits in transit or outstanding checks.

Investment Portfolio Review

Investment Verification: If the church holds investments, compile a list of these from the balance sheet. Verify the amounts using custodial or trustee reports and obtain written confirmations of balances.

Property Documentation

Property Records: Create a complete inventory of church-owned properties. Request relevant titles or deeds, verify their storage locations, and check insurance coverage. Refer to applicable guidelines from the Discipline on property ownership.

Credit and Purchasing Card Monitoring

Statement Review: If the church uses credit or purchasing cards, collect statements for the test period. Confirm that all balances have been paid and report any outstanding balances to the Finance Committee.

Tithes and Offerings Verification

Revenue Reconciliation: For six selected Sundays within the test period, review the counting sheets and reconcile them with the general ledger. Verify the accuracy of bank deposits corresponding to revenue accounts.

Other Income Sources

Income Testing: If the church relies on additional income streams, conduct targeted tests to verify their accuracy and completeness. Include detailed findings in your report.

Donation Confirmation

Significant Contributions: For substantial donations, confirm the amount and intended use directly with the donors. Ensure these funds are correctly recorded.

Expense Validation

Expenditure Testing: Randomly select 24 expenses from the general ledger and 18 cash disbursements from bank statements. Review the appropriateness of each against supporting documentation and payment approvals. 

Insurance and Bonding Review

Insurance Policies: Examine all insurance policies to confirm coverage adequacy and compliance with any minimum requirements set by the annual conference.

Treasurer Bonding: Verify that the church treasurer is bonded and ensure the bond amount adequately covers the church’s assets.

I would be honored to have the opportunity to discuss how my auditing services can benefit your church. Please feel free to reach out to me to ask any questions you may have.

Thank you for considering me for your audit, and I look forward to the possibility of working together to support the financial health and integrity of your church.