The next series of blog posts are going to detail the results from our Foursquare national audit. The audit report covered several areas and so rather than communicate everything all at once I’ll break it down into bite-sized pieces over the coming weeks! Our next audit is coming soon and so I hope these posts will be helpful as you conduct your year-end preparations.
One important check and balance that needs to be in place is the monthly reconciliation of all bank accounts. This ensures that bank balances reported on the financial statement are accurate and can be depended upon by the church council to make financial decisions. In this area the auditors made the following recommendation:
“We notice that bank reconciliations are in general prepared and reviewed by bookkeepers without further verification or approval by another person. We recommend that the monthly bank reconciliations and the corresponding bank transactions be reviewed and approved by a senior staff with sufficient accounting knowledge.”
A simple way to put this into practice is to have the bookkeeper attach a copy of the bank reconciliation and bank transaction report to the monthly Ministry Report (the bottom section of the report asks whether the bank reconciliation was completed for the month). The Council Treasurer can then review the bank reconciliation and follow up on any questions before the form is signed and submitted to the national office.
Note: the bank reconciliation and transaction report do not need to be sent with the Ministry Report to the national office. A signature by both the pastor and Council Treasurer is confirmation that this step has been completed.
If you have any questions about this topic please complete the contact form to the right of this blog post or below in the comment space.
The following link is a resource on how to prepare a bank reconciliation: http://www.foursquare.ca/bank-reconciliations.html
Serving With You,