RIVAS, Maya B.
RIVERA, Arizza
TIRU, Nina Fatima
WEAKNESSES
RECOMMENDED IMPROVEMENTS:
1. An audit is performed annually by an
independent auditing firm.
The board of trustees is responsible for
obtaining the services of an independent
auditing firm.
2. Written instructions for handling cash
collections apparently have not been
prepared.
Especially because much of the work
involved in cash collections is performed by
unpaid, untrained church members,
often on a short-term basis, detailed written
instructions should be prepared.
3. The finance committee is responsible
for the auditing function and
administration of the cash function.
Moreover, the finance committee has
not performed the auditing functions.
An audit committee should be appointed to
perform periodic auditing procedures or
engage outside auditors.
4. Members are asked to enter “cash” on
the payee line, thus making the checks
completely negotiable and vulnerable
to misappropriation.
Members should be asked to make checks
payable to the church. At the time of the
count, ushers should stamp the church’s
restrictive endorsement (For Deposit Only) on
the back of the check.
bank.
and bolting the door during the period of the
count, should be instituted. Vulnerability to
robbery will also be reduced by increasing the
to cash during the period of the count.
There are typically five ushers present during
and supported by the empty collection
envelopes. Prenumbered envelopes will
permit ready identification of the donor by
authorized persons without general loss of
confidentiality.
