Ep 16~ Why Doing an Internal Church Audit is a Great Idea

Although the chances of your church being audited by the IRS are
slim, they do happen. One way to help squelch the odds of that
happening is to have your church perform an ANNUAL Internal
church audit. Most churches are not large enough to warrant the
cost of a full-blown external CPA audit, so an internal audit is
just the ticket to help ensure ongoing accountability,
transparency and compliance.


In today’s episode we are going to cover 4 reasons to perform an
internal audit AND some areas that I highly recommend that you
include in such an audit.


Reasons to perform an internal audit:


1.    Ensuring Financial Accountability


2.    Strengthening Internal Controls


3.    Demonstrating Transparency


4.   Compliance with Legal and Regulatory Requirements


Areas to include in your audit:


1. Financial statement reporting (monthly reports)


2. Cash receipts (including counting offerings)


3. Donation recording


4. Cash disbursements (petty cash fund?)


5.  Bank statement reconciliation


6.  Assets (bldg./land/equipment) & Insurance policies


7. Accounts Payable (incl. any outstanding mortgages/notes
payable)


8. Personnel (EE records/files/proper classification) &
Payroll filing requirements


And then end the audit with goals you have for the upcoming year.


 


xo,


Michelle


Next Steps:


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Learn More:www.churchfinances.org


Email Me:michelle@churchfinances.org


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