Internal Audit Checklist
monthly financial statements prepared on a timely basis and submitted
to the church board or appropriate person or committee?
- Do the financial statements include all funds (unrestricted, temporarily restricted, and permanently restricted)?
- Are account balances in the financial records reconciled with amounts presented in financial reports?
Church Accounting Package
A set of 4 ebooks that covers the following topics...
- Fund Accounting Examples and Explanations
- Setting up a fund accounting system
- Donation management
- Minister compensation and taxes
- Internal controls and staff reimbursements
- Much more - Click here for details
- Are individual donor records kept as a basis to provide donor acknowledgments for all contributions?
no goods or services were provided (other than intangible religious
benefits) in exchange for a contribution, does the receipt include a
statement to this effect?
- If goods or services (other than
intangible religious benefits) were provided in exchange for a
contribution, does the receipt inform the donor that the amount of the
contribution that is deductible for federal income tax purposes is
limited to the excess of the amount of any money and the value of any
property contributed by the donor over the value of the goods and
services provided by the organization, and provide the donor with a good
faith estimate of the value of such goods and services?
not required by the IRS, has your organization adopted a policy of
issuing an annual contribution report to donors listing at least each
week’s donations, if not each donation?
- Are the donations traced from the weekly counting sheets to the donor records for a selected time period by the audit committee?
- Are all disbursements paid by check except for minor expenditures paid through the petty cash fund?
- Is written documentation available to support all disbursements?
- If a petty cash fund is used, are vouchers prepared for each disbursement from the fund?
- Are pre-numbered checks used? Account for all the check numbers including voided checks?
PETTY CASH FUNDS
a petty cash fund used for disbursements of a small amount? If so, is
the fund periodically reconciled and replenished based on proper
documentation of the cash expenditures?
BANK STATEMENT RECONCILIATION
written bank reconciliations prepared on a timely basis? Test the
reconciliation for the last month in the fiscal year. Trace transactions
between the bank and the books for completeness and timeliness.
- Are the bank reconciliation reports signed and dated?
- Are there any checks that have been outstanding over three months?
SAVINGS AND INVESTMENT ACCOUNTS
- Are all savings and investment accounts recorded in the financial records? Compare monthly statements to the books.
- Are earnings or losses from savings and investment accounts recorded in the books?
LAND, BUILDINGS, AND EQUIPMENT RECORDS
there detailed records of land, buildings, and equipment including date
acquired, description, and cost or fair market value at date of
- Was an equipment physical inventory taken at year-end?
- Have the property records been reconciled to the insurance coverages?
- Is there a schedule of unpaid invoices including vendor name, invoice date, and due date?
- Are any of the accounts payable items significantly past-due?
- Are there any disputes with vendors over amounts owed?
there a schedule of insurance coverage in force? Reflect effective and
expiration dates, kind and classification of coverages, maximum amounts
of each coverage, premiums, and terms of payment.
- Is Workers’ Compensation insurance being carried if your state requires it?
AMORTIZATION OF DEBT
- Is there a schedule of debt such as mortgages and notes?
- Have the balances owed to all lenders been confirmed directly in writing?
- Have the balances owed to all lenders been compared to the obligations recorded on the balance sheet?
SECURITIES AND OTHER NEGOTIABLE DOCUMENTS
- Does the organization own any marketable securities or bonds? If so, are they kept in a safety deposit box?
- Have the contents of the safety deposit box been examined and recorded?
Does the organization maintain the following documents?
- Applications for employment
- W-4 forms for each employee
- Personnel files
- Employee handbook
- I-9 form
FEDERAL REPORTING OBLIGATIONS
the organization file on a timely basis the following forms if
applicable? Federal payroll tax forms (Form 941, Form W-2, Form W-3,
See the Freebie page for a downloadable Internal Audit Checklist with a place to check off or initial each entry.
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