Part 5 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to these statements: “Our church has a formal policy describing the characteristics required for participation on the count team, including limiting related individuals and restricting the same individual from participating in more than one component of the process.” “Church […]
I ended the last post by asking, “Are these definitions sufficient?” Obviously the answer is no because that would be the end of this blog series! Keep in mind that the three definitions posted were all written by accountants… As a result, the main flaw with these definitions is that they appear to be about […]
Part 4 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to these statements: “Our church does not allow an individual who serves on the count team, is involved in check preparation, or is involved in general ledger and financial statement presentation to participate in the bank reconciliation process.” “Someone […]
Before launching into a study of anything, I like to make sure I have at least a basic understanding of what the topic is all about. So, before launching into church budget development I looked up a few definitions of what a budget is: An accounting device used to plan and control resources of operational […]
Follow these fundraising financial safeguards to ensure that donations are collected securely and properly during charity fundraisers. Churches and ministries often host fundraisers to support various projects like mission trips, community outreach, facility improvement and staff support. As non-profits, churches rely a great deal on the funds they raise and therefore they have to maintain […]
Part 3 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to these statements: “The individual who prepares the checks also mails the checks.” “The person responsible for general ledger and financial reporting also mails the checks.” Survey results – A little over 50% of the respondents answered […]
Our next series of posts will be a discussion of budget planning for the church. As I commented on our other blog (Faith Based Accounting: July 27, 2012) “Attitudes about budgets vary greatly among churches. Some churches operate without one, a practice I definitely do not recommend. Many others swing to the other extreme expending […]
Part 2 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to this statement: “From the time of collection to the time of the bank deposit, funds are never, even for just a few minutes, in the custody of a single individual or kept in an unsecured location.” Survey results […]
Churches have embraced the digital world and are becoming very proficient in the use of computers. A vast array of applications has been made available to the church including sophisticated financial accounting and reporting, childcare security, online purchasing, online tithing, phone trees and coffee bars with free wireless internet. Without a doubt, churches have become […]