1 / 8

Internal Control Procedures

Internal Control Procedures. How to Implement Controls – Part 1. Well-defined organizational chart, showing clear lines of responsibility Separation of Duties Custodianship, recordkeeping, authorization

ricky
Download Presentation

Internal Control Procedures

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Internal Control Procedures

  2. How to Implement Controls – Part 1 • Well-defined organizational chart, showing clear lines of responsibility • Separation of Duties • Custodianship, recordkeeping, authorization • For example: bookkeeping, signing checks, reconciling the bank account and cancelled checks, recording and depositing receipts (offertory collections and other receipts) • Safeguard accounting records • Secure financial documents • Checkbook, deposit slips, etc • Use of check request form for all “material” purchases • Establish an internal audit committee

  3. How to Implement Controls – Part 2 • Rigorous hiring practices (screening employees) • Fidelity bonds for those who handle cash • Encourage (mandate??) use of envelopes for contributions • Encourage (mandate) checks, not cash, for contributions (or bank transfers) • Have at least two people involved in the offertory counting

  4. 50 Internal Control Practices • General Internal Controls • Includes cash receipts controls • Cash Disbursement Controls • Reconciliation Practices • Other Assets

  5. IC Best PracticesEvangelical Lutheran Church • Receipts (Sunday and special offerings); • Bank account reconciliation process; • Authorized bank signers • Capital expenditures; • Disbursements; • Congregational loans; • Payroll; • Taxes; • Data processing/data security/Personal Identity Information (PII); • Asset classification; • Purchasing; • Records retention; • Regulator and legal compliance; • Code of Ethics; • Endowments; • Travel expenses; • The budgeting process

  6. Fin. Mgt. and Control ManualDiocese of Des Moines • Bank Accounts • Other Parish Organizations • Internet Banking • Cash Disbursements • Management of Mass Collections • Other Cash Receipts • Socially Responsible Investments

  7. Diocese of Bridgeport • Controls over Offertory Collection • Review and Tests of Parish Financial Controls and Accounting Practices • Annual budget preparation and monitor actual results • Revenues and collections (again!!) • Purchasing and disbursements • Payroll and related transactions • Bank and investment account reconciliations • Report results of review and tests

  8. Internal Controls Questionnaire • IC Questionnaire from Episcopal Diocese of Montana • IC Checklist from the Tennessee Baptist Convention

More Related