ANNUAL FUND BALANCE REPORT

Section 258.4 d of the 2012 Book of Discipline makes it mandatory that every local church finance committee “shall make provision for an annual audit of the financial statements of the local church and all its organizations and accounts. The committee shall make a full and complete report to the annual charge conference.” A local church audit is defined as an independent evaluation of the financial reports and records and the internal controls of the local church by a qualified person or persons.

The audit shall be conducted for the purpose of reasonable verifying the reliability of financial reporting, determining whether assets are being safeguarded, and determining compliance with local law, local church policies and procedures, and the Book of Discipline.

The audit may include: 1) a review of the cash and investments reconciliations; 2) interviews with the treasurer, financial secretary, pastor(s), finance committee chair, business manager, those who count offerings, curch secretary, etc., with inquiries regarding compliance with existing written financial policies and procedures; 3) a review of journal entries and authorized check signers for each checking and investment account; and 4) other procedures requested by the committee on finance.

The audit shall be performed by an audit committee composed of persons unrelated to the persons listed in (2) above or by an independence certified public accountant (CPA), accounting firm, or equivalent.

Also it is the best way to protect the persons that the local church elects to offices of financial responsibility from unwarranted charges of careless or improper handling of funds; to build the trust and confidence of the financial supporters of the church in the way their money is being accounted for (trust and confidence lead to improved patterns of financial support); to set habits of fiscal responsibility to assure that when there is turnover in personnel there will be continuity in accountability and nothing will fall through the cracks; to assure that gifts made to the church with special conditions attached are consistently administered in accordance with the donors’ instructions, and thus let donors know their gifts are used as intended; and to provide checks and balances for sums received and expended.[1]

Please give special attention to the completion of the Audit Report on 2014 records. This becomes the material the Church must use to protect your resources and to accurately record the overall cash flow on the congregations for potential IRS reviews.

You do not need to hire an outside firm to complete this audit work. You may want to do this in rare situations, but members of the finance committee or members of the Church Council who do not disperse or receive funds can do this report. Should you need support from a neighboring congregation or District Treasurer, please contact the District Office.

2014FUND BALANCE (AUDIT) REPORT

(performed by the local church financial / audit committee)

DUE IN THE DISTRICT OFFICE BY APRIL 1, 2015

MAILING ADDRESS:SHAWNEE VALLEY DISTRICT - UMC

573 E. MAIN STREET

CHILLICOTHE OH 45601

JANUARY 1, 2013 through DECEMBER 31, 2014

CHURCH ______CHARGE ______DATE ______

Church Treasurer ______Financial Secretary ______

Local Church Funds
(Use those applicable
to your church) / Balance Beginning of Period / Cash Received and Recorded / Total Disbursements for Period / For
Transfers + (-) / Balance end of Period
General Fund
Benevolence Fund
Building or Improvement Fund
Board of Trustee’s Fund
United Methodist Women
United Methodist Youth Fellowship
United Methodist Men
Church School
Other Organization or Funds:
Name:
Name:
Name:
Outstanding Debts
Total amount of cash in alltreasuries of the church

(over)

Detail Listing of Accounts Audited

Bank

/

Account Number

/

TIN/EIN**

*You may use an Excel Spreadsheet or similar computer program or additional sheets if necessary

**Taxpayer or Employee Identification Number. Each local church should have its own TIN/EIN assigned by the IRS through form SS-4

COMMENTS/RECOMMENDATIONS:

STATEMENT: We have audited the above accounts, have reconciled the receipts and disbursements with bank deposits and bank accounts, have reviewed counting procedures and accounting according to the current Book of Discipline and have found them to be correct, procedures proper, and records kept in order, except as noted below:

(to be signed by members of the Audit Committee)

Chairperson:______

______

____________

PLEASE KEEP A COPY OF THIS REPORT FOR YOUR RECORDS

[1]Local Church Audit Guide, GCFA Committee on Audit and Review. Stan Sutton, chair. Nashville. November, 2001