Audit Form * Audit Year: Name of Congregation * City: * (List the names of those who served during the year being audited.) * Rector: * Treasurer: Other: * Financial Records maintained by: * Location of Financial Records: * Location of audit: * Date of audit: * Audit Committee: (Please list names below) Others present during the audit: (Please list names below) Have you discussed the objectives and scope of the audit? * Yes No Have you arranged the time schedule? * Yes No Have you discussed reimbursement of expense? * Yes No Do you know where you will meet to conduct the audit? * Yes No Wil the required records be available for review? * Yes No Are the treasurer, bookkeeper and anyone else involved with the finances available for questions? * Yes No Has the engagement letter setting forth the agreements between the audit committee and vestry been signed? * Yes No Is vestry approval of the budget noted in the minutes? * Yes No Is it noted in the vestry minutes that they have seen financial statements (income statement and balance sheet) and compared actual income and expense to budget or discussed major discrepancies? * Yes No Is it noted in the minutes that the vestry reviews the budget at least quarterly? * Yes No Are quarterly reports for all other funds, including restricted and investment funds provided to the vestry? * Yes No Has the vestry approved proprety purchase or disposal of equipment? * Yes No Does the church have petty cash? * Yes No How is petty cash protected from theft or misplacement? * How many have access to petty cash? Please list who is responsible. * How often is petty cash replenished? Who reviews the receipts prior to replenishing petty cash and determines if the documentation is adequate? Please note how often this is done and who reviews/approves. * Count Petty Cash. List the amount of cash below: * Add up receipts. LIst amount of total receipts: * Does the cash on hand + the amount of receipts = the amount of petty cash on the balance sheet? * Yes No N/A Have you examined paid checks for authorized signatures? See the internal controls questionnaire for authorized signatures. * Yes No Have checks been compared to the disbursement journal/register for payes and amounts? * Yes No Look at December 2023 bank statement for checks and then look at the January 2024 statement to see if they have cleared. If the checks have not cleared, ask about their policy for voiding or reissuing checks within 90 or 180 days. If no policy, note it and recommend they adopt a policy regarding voided and stale checks. * Yes No Look at December statement from 2024 to see if there are outstanding checks. Look at the January 2025 statement to see if those checks have cleared. Have they cleared? * Yes No Compare checks to check register for amounts and payees to test for accuracy. Are there discrepancies? * Yes No Compare deposit slips and donor records with the bank deposits for the full year. Are there discrepancies? Sample at least one deposit per month. * Yes No If there are transfers between accounts, have both sides of the transfer been accounted for? * Yes No Are all checking accounts (including discretionary funds and Episcopal Church Women - ECW) in the name of the congregation using its Federal Employer Identification number? * Yes No If there are checks written to "cash", is adequate documentation to support them? * Yes No If there are debit card transactions, is adequate documentation to support them? * Yes No Look at register for assessment payments. Are checks written to the diocese before the 10th of each month? * Yes No If the church has a credit card, is it paid in full and on time each month? List the limit on each card and the cardholder(s) name(s) below: * Yes No Do receipts noting the expenses accompany each credit card statement? There should be a receipt for each charge on the bill. Please list any discrepancies or issues in the notes and include in the audit findings letter. * Yes No Review the cash counting sheets - do they match deposit slips for the week? Sample at least one per month. * Yes No Look at a sample of discretionary fund checks. Are there checks written to vendors (without explanation) that could be for operating expenses? Review at least one check per month. If there is not a separate discretionary fund, note that in the findings and note how the funds are tracked. * Yes No If the church uses pledge cards, list the number of individual pledge records sampled (at least 10% is recommended) Do the records of total receipts per individual pledge agree with the amounts recorded on the deposits or the amounts on the donor records? * Yes No Have the postings and arithmetic on individual pledge records been tested? * Yes No If there is a separate gift system, have you reviewed the information? You can check this by looking at ACH deposits into the bank account or reviewing PayPal donations or others as identified by the congregation. * Yes No N/A Compare budget to actual pledges received. If there are differences, ask questions and note differences and explanation below: * Have you reviewed records on gifts, such as bequests, which are contingent on future events? * Yes No If so, list dates of documents here: Have you reviewed information on wills, life insurance policies, life, income, endowment and annuity gifts gifted to the church? * Yes No If so, list dates of documents here: Review a sample of the letters to donors. Do they have the language required by the IRS regarding contributions over $250 that states that it is - "the contemporaneous acknowledgement required by the Internal Revenue Code and that in accordance with Section 170(F) (8) (B) any goods or services provided consist solely of intangible religious benefits"? * Yes No List the name of company that manages churche's funds: * How often does the vestry meet with the investment manager? * If investment instruments (securities, bonds, CDS, etc.) are in the physical possession of the church, how are they protected from theft or misplacement? * Are the investment statements in the name of the church? * Yes No Are investments income and dividends recorded? * Yes No What is the market value of investments at the beginning of the year? * What is the market value at the end of the year? * Does the market value from the investment statement match the market value listed on the financial statements for January and December? (Beginning and end of year) * Yes No N/A Can you see withdrawals from the investments? * Yes No N/A If there are withdrawals, verifythe money was transferred to another church account (checking, savings, or other investment). Can you see which account(s) funds were transferred into? * Yes No N/A Are all investment accounts included on the financial reports to the vestry * Yes No N/A Does the church have an Investment Policy Statement? * Yes No N/A If so, what is the date on the policy? Is the investment policy statement being followed? * Yes No N/A Have you seen a list of trust or endowment funds which includes their terms and the locations of investments as well as date of purchase and cost? * Yes No N/A If so, list date of document below: Have you reviewed information about the deed of trust or agency agreement for each trust or endowment fund? * Yes No N/A If so, list date of document below: Are terms of the trust or endowment being followed? * Yes No N/A Is there an inventory list of fixed assests showing date of purchase and cost? * Yes No Review the inventory list. Does the list include the following items: * Date acquired if known Yes No * Detailed Description Yes No * Replacement Value Yes No * Gifts that are restricted by the donor if applicable Yes No List the date the inventory was last completed below. Please note if the inventory was not reviewed within the last two years. * Does the inventory list include the above items? If not, note it in the recommendations. * Yes No Do you have a process for an annual review of the inventory? * Yes No Walk through the church and look for some of the items on the list. Were you able to locate the items? * Yes No Is an inventory list/record kept with the insurance file and another copy maintained either off site or in a fireproof safe? * Yes No Are land and buildings listed on the financial statements? * Yes No If the church has outstanding liens against the property or equipment have you reviewed the documentation? * Yes No N/A Have you seen personnel files? * Yes No N/A Have you seen a signed IRS form W4 and I9 Department of Justice Form for each employee (including clergy)? * Yes No N/A Have you seen a letter of agreement for both clergy and lay employees? * Yes No N/A Have you seen copies of new hire forms for each employee? (Or notation about when the reporting was made to the State of Montana for both lay and clergy). * Yes No N/A Does the letter of agreement or vestry resolution state that health insurance is provided? (to be in compliance with Diocesan Canon 16) * Yes No N/A If so, do you see bills for the health insurance on file Yes No Has a housing resolution been included in the vestry minutes for each cleric employed by the congregation? * Yes No N/A Does the church provide a life insurance policy for the priest or lay staff? * Yes No N/A Does the church contribute to a health savings account for clergy or lay staff? * Yes No N/A Do the clergy or lay staff make pre-tax contributions to 403(b) plans? * Yes No N/A How do you reimburse for travel expenses? Flat rate or with mileage submission? Note below: * Have you seen a W2 form for all employees (both clergy and lay)? * Yes No N/A Are other income and withholding items included in Boz 12 on the W2 forms? Such as: imputed income, 403 (b) withholdings and health savings account contributions. * Yes No N/A Do the total wages on the W2 forms equal the totals on the quarterly 941 forms and W3 forms as well as the total expenses for salaries on the income statement? Imputed income does not appear on 941s or income statements but are added on to an individuals' income on W2s and W3s. * Yes No N/A Do the totals for withholding taxes on W3 form match the quarterly 941 forms? * Yes No N/A Are payroll tax returns (e.g. IRS 941) filed and deposits made on a timely basis? * Yes No N/A Look at state quarterly unemployment reports. Do salaries match totals on 941? (Minus clergy - they are excluded from state unemployment). Note: Churches are not require4d to pay Federal Unemployment Tax (FUTA) for clergy or lay employees. * Yes No N/A Review annual worker's compensation reports. Are all employees listed? (Clergy are included on this report). * Yes No N/A Is a W9 form provided by every contractor or anyone who is paid for their services? * Yes No N/A If those who are issued a 1099 do not provide their own worker's compensation coverage, have they been added to the church's report or does the church have a copy of their Independent Contractor certificate that waives coverage? * Yes No N/A Are forms 1099 provided for all individuals who are not employees and for all entities paid $600 or more annually if they are not an S or C Corporation? * Yes No N/A Review pension expense on the income statement. It should equal 18% of the salary plus housing for a priest or 9% of salary for a lay person. Has the correct amount been paid for pension? * Yes No N/A If debt is noted in the Vestry minutes for the year being audited have the Bishop, Standing Committee, and Diocesan Council approved all debt? Debt includes Faber Fund loan from the diocese. If no new debt in audit year, mark N/A * Yes No N/A Have unpaid balances been reconciled with the balances reported by the creditor? * Yes No N/A Have you seen a detailed schedule of loans prepared, including name of creditor, date of origin, original amount of debt, collateral (if any), interest rate, payment schedule, monthly payment, unpaid balance, loan purpose and authorizing body? This amount should include Faber loans from the diocese as well as any outside creditors. If so, list information on debt below: * Are all loan agreements and/or lease agreements in writing and properly safeguarded? * Yes No N/A Are periodic reviews conducted to determine compliance with deb/lease provisions? * Yes No N/A Are bills paid on time? (including loan or lease payments) * Yes No Look at payments made in the January after the audit year. Do any of the payments appear that they should have been paid in December? * Yes No If so, are they on the December statements as a liability? * Yes No N/A Are there any prepaid items listed in assets? * Yes No N/A Are any items showing as a prepaid item that should have been listed as an expense in the year being audited? * Yes No N/A Review insurance policies. Are they up to date? Policy info should be on file for the year being audited. * Yes No Is the worker's compensation poster posted? * Yes No N/A Is the unemployment insurance poster posted? (if church has lay employees) * Yes No N/A Are the OSHA and minimum wage employment posters posted? (if church has lay employees). Posters can be obtained free of charge at local Job Service * Yes No N/A Does the assessment expense on the Income Statement equal the amount listed on the report from the diocese? * Yes No Do the figures on the parochial report match the figures on the income statement? (Compare income and expenses for yar-end) * Yes No Are there reserve funds set aside for building maintenance or major repairs listed on the Balance Sheet? * Yes No Have you explained the vestry letter to the priest and treasurer and told them where to find it * Yes No What are the church's positive financial practices? Please note the practices the should continue in the audit findings letter. * Please provide any additional information below: We, as the auditors for the above named Parish certify that we are not related or in a relationship, part of the vestry, or signators. * Please list all names below of the audit committee. Date * The vestry should also include a response to the audit, as part of the acceptance of the audit Thank you!