One of the greatest amounts of time spent by the auditors in conducting our national audit was in the area of reporting for Church Property (Building and Land), Loans and Trust Investments.
As the legal entity, the Foursquare Gospel Church of Canada holds title to all church property and also carries the liability for all loans through CIBC. This means that it is the responsibility of FGCC to report church property and loans in the financial records of the national office and also report these amounts on the T3010 Annual Charity Return.
This practice of "double accounting" presented a great challenge to the auditors and they requested for the 2015 audit that all amounts reported for church property and loans in the financial records of the churches be removed. This would also include amounts held In Trust with the national office for proceeds of church property sales held in investments. The auditors request was presented to the national board by the Audit Committee and approved as a new Administrative Manual policy.
For those churches who have reported the property, loans and investments in the accounting records this means that year end adjusting entries will need to be made PRIOR to submitting the year end financial reports, trial balance and general ledger. If you have already sent these to the national office then adjusted statements will need to be resubmitted.
- Church property balances reported on the balance sheet as of January 1, 2015 will need to be removed by crediting the church property account and debiting Retained Earnings.
- Church property additions or renovations that were done throughout the 2015 year are to be treated as an expense and recorded in the section for Gifts to Qualified Donee to FGCC.
- Additions to church property and renovations are to be reported on the 2015 Year End Audit Confirmation form.
- Please also see Church Accounting - Church Property for further instructions.
- Church loan balances (CIBC) reported on the balance sheet as of January 1, 2015 will need to be removed by debiting the loan account and crediting Retained Earnings. ** This does not include in-house loans with national office.
- Loan payments that were made throughout the 2015 year are to be treated as an expense and recorded in the section for Gifts to Qualified Donee to FGCC.
- Please also see Church Accounting - Church Loans for further instructions.
- Trust Investment balances reported on the balance sheet as of December 31, 2015 will need to be removed by crediting the investment account and debiting Retained Earnings. ** This does not include Trust Investments that were funded by accumulated or excess church revenue.
- Please also see Church Accounting - Investments for more details.
If you have accounting questions or need assistance please complete the Foursquare Help Contact form to the right of this post or Leave a Reply below.
If you have questions or concerns about the auditors request please direct them to the Audit Committee at [email protected].
Serving with You,