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BULLET PROOFING YOUR CHURCH
1. Setting the house in order A. Administrative & Compliance Analysis: Study all current administrative procedures, including filing procedures, supporting documentation, insurance coverage, adequacy of bylaws & minutes, contracts, personal procedures and policies, payroll tax reports, personal files, record retention policies, offering, counting and deposit procedures, including needed supporting documentation, benevolence and discipline policies, membership criteria. Study the ministries structure, including board of directors, elders and deacons. Assess whether the church appears to be in compliance with federal, state and local government laws and regulations. Analyze the reasonableness of the Senior Pastors compensation, and create a reputable position for the IRS=s intermediate sanction rules and regulations. Review the Board of Directors minutes to determine if compensation is being set in accordance with current IRS regulations. Provide an analysis of the existing internal controls of the church. We will provide procedures concerning the counting, recording and depositing of contributions. We will provide instruction on proper segregation of duties that will provide checks and balances needed for proper internal control. Good internal controls ensure the protection of the ministries physical assets, reputation and guard against errors, mismanagement and fraud. Provide the ministry with Good Governance policies to comply with the new IRS standards. B. Accounting Analysis: Analyze the current financial statements. Make adjustments to material balance sheet and profit and loss account balances. Modify the current chart of accounts to ease the burden of generating accurate financial statements. Create a listing of all fixed assets and record their value on the books. 2. Install Ministry Accounting System: A. Install QuickBooks on the church computer or server. B. Record opening balances for the bank accounts. Other balance sheet accounts will recorded if available. C. Assist staff in recording at least one month of accounting transactions in QuickBooks and reconciling the Bank account(s). D. Provide additional staff training as required. 3. Findings & Recommendations A. Meet with the leadership and present a recap of our initial findings and recommendations. Answer any questions about the findings and recommendations. B. Review the current per person giving level of the church membership. C. Provide a management letter of findings and recommendations summarizing the areas of non compliance, and provide recommendations for improvement. D. Provide a Report Card covering 15 key areas of compliance and internal control.
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