Financial Controls

Many local churches ask questions about how to protect themselves and their volunteers from issues around the subject of improper handling of offerings or other monetary gifts. The Insurance Board has an excellent series of flow-charts to assist local churches in maintaining sound financial controls (Click here to download). Also, we recommend the following points of wisdom that have been offered on this subject:

Have two signers on checks.
Be sure someone other than the Treasurer receives, opens and reviews the bank statement in a timely manner.
Make certain that payroll withholdings are properly deposited and filed in a timely manner with IRS and other government agencies.
File IRS Form-1099 for any non-employee receiving $600 or more.
Always have at least two individuals who count offerings. Use preprinted tally sheets that require signatures.
Deposit offerings in the bank immediately; do not take them home or leave them in the church office.
Verify deposit slips with bank statements.
Provide receipts/contribution statements to all donors.
Secure financial records, software back-ups and sensitive data to prevent loss due to theft, fire or natural disaster.
Perform an annual audit.