Internal Audit Finding Update Common audit findings. 1. Reductions in Reported Offertory Figures: The offertory for each mass is collected and is put into a separate bag for the appropriate mass, such as 8:00 am Sunday. The bags for each are then put in the office safe. The counters take the bags from the safe and count the funds and record them on a counter’s sheet. When finished the counters put the cash, coins, and checks in a night deposit bag with a deposit slip. A yellow copy of the deposit slip is clipped to the counter’s sheet. The Finance and Accounting Officers uses the counter sheet to enter the data into the accounting system. 2.
Undocumented Individuals as Independent Contractors: Every effort is made to obtain the proper documentation from contractors. It is the Federal Government’s responsibility to determine who undocumented individuals are: SSNs are easy to forge. We require Federal Identification Numbers from all contractors. Exempt and non-exempt employees: The parish does not budget for overtime. All employees are classified as non-exempt except the music minister who is salaried. Christmas bonuses: The parish does grant Christmas bonuses, however, the bonuses are not administered through the centralized payroll system. In the future the parish will follow the diocesan guidelines.
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Multiple checking accounts: The parish has one central checking account. All funds are deposited and expended from this account. The parish uses a separate checking account, under the pastor’s guidance, for it International Food and Music Festival. A treasurer for the fund maintains its checking account and a Certified Public Accountant (CPA) maintains the accounting system for these funds. The CPA provides to the pastor various reports reflecting proper disclosure of all funds deposited and expended from this checking account.
4. Excess deposits on funds with diocese: Parish has for several years deposited funds to its diocesan building funds. These funds come from primarily offertory collections and other operating income accounts. Also the parish has for several years deposited funds to its diocesan contingency account. 5. Offertory count teams: The parish has six count teams of at least two people assigned on a staggered rotating basis. It will be emphasized to the count teams that each member will be present when the night deposit bags are properly deposited at the bank.
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6. National special collections and special collections: The parish accounting system includes the proper diocesan accounts to properly account for diocesan special collections. The funds are sent to the diocese normally in two to three business days after the funds were collected. As to National Special Collections the parish budgets for these collections and uses operating income to make the payments to the diocese. The parish started this program and part of the parish’s Stewardship Program. The parish believes those parishioners who support the parish are supporting the National Special Collections, even in an indirect way. 7. Parish Finance Councils: All minutes of every finance council meetings are prepared and, reviewed and approved at the finance council meetings. The minutes are retained in the parish office. The parish finance council meets more often that the diocesan quarterly requirement. Two members of the finance council review monthly the parish’s accounting records. They report the results of their review to the finance council chairperson. 8. School principal’s presentation to parish finance councils: Not applicable. 9. Background checks and safe environment training: The parish follows the diocesan guidelines and, therefore, before any person is hired, he or she must pass a background check. The parish maintains these records in the pastor’s office in a water proof locked cabinet. 10. Credit card limits: The parish has a Visa Credit Card with a total credit limit of $10,000. In fiscal year 2010 the parish reported a total operating income of $542,249. The parish Visa account is significantly below the diocesan limit of $22,500. There are four issued credit cards under one Visa card number. The pastor, pastoral vicar, office manager, and finance and accounting officer are holders of the four credit cards. Another limited credit card is with Lowes’ Home Improvement Company with a credit limit of $5,000. All uses of the credit cards are for parish expenses. All invoices are submitted to the finance and accounting officer who maintains an excel® worksheet for the disbursement of a check to the credit card companies. The invoices and the worksheet are filed in the appropriate monthly folder for all expenditures. All credit card accounts are paid off every month; no accounts maintain an outstanding balance. If an invoice is missing every attempt is made to determine who made the charge and then a written explanation of the nature of the expense is obtained.
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