Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council:...

Internal Review Findings To Date

DIOCESE OF DES MOINESCHRISTIE RICEAUGUST 2019

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Internal Reviews: Overview

Started FY 2014

Completed 52/87

Not an “Audit”

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Internal Reviews: Overview

Focus on internal controls

Controls meant to prevent and/or

detect errors

Do confirm all bank and investment accounts

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Internal Reviews: Overview Sample items from major transaction areas:

Receipts (Mass collections)

Disbursements

Payroll

School tuition/fees4

Internal Reviews: Overview

Review items of importance to Fed/State

Review certain diocesan-wide policies:

E.g., Facility Agreements

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Two Most Important Areas

Mass Collections: Life blood of a parish and

important to schools. Multiple steps involved.

Reconciliations: Compare internal financial

records with financial institution’s. Helps

ensure that all activity is recorded.6

Mass Collections

Goal: Protect gifts from point of collection to

the point of depositing at the bank.

Step 1: Use pre-numbered Tamper-resistant

Bags (TRBs).

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Mass Collections

Pre-Assign TRBs:

Use Bag Tracking Form

Write Mass date and time

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Bag Tracking Form

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Mass Collections

Pre-Assigner:

Secure unused, unassigned TRBs

Should have no access to uncounted funds

Ensure counters are verifying TRB #s

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Mass Collections

Count Room Readiness:

Room away from the crowd with a door

Everything needed already there

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Mass Collections

Always at least 2 unrelated people

Ushers combining gifts into TRB

• Ushers sign TRBs

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Mass Collections

Ushers secure the sealed TRBs

Drop Safe

At the Altar

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Mass Collections

2 unrelated counters get TRBs

Take to counting room

Complete Bag Tracking Form

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Bag Tracking Form Finished

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Mass Collections

Count Process: Provide detailed instructions

Parish Resource Manual, pp. 18-19

Involve 2 people in each aspect:

Loose checks and cash

Envelopes and contents16

Mass Collections

Count Sheet:

Write down totals

Place for Counters’ signatures (legibly )

Place for TRB #

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Mass Collections

3-part Deposit Slip:

One stays in book

One goes with deposit to bank

One goes with count sheet to bookkeeper

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Mass Collections

Counters take deposit to bank

Use pre-assigned TRB

Two Take: Security in numbers

• Not bookkeeper/tithe recorder

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Reconciliations

What’s important?

Timely prep and review of reconciliations.

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Reconciliations

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Most Frequent CommentsMass Collections:

Not tracking TRBs

Access to uncounted funds

Need more detailed count instructions

Recounts22

Most Frequent CommentsReconciliations:

No review

Problem with uncleared items

No reconciliation

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Most Frequent Comments PayrollW-4s not matching with actual pay calculation

Timesheets not being completed/approved

Approval of payroll being processed

Timeliness of 403b payments

Missing 403b forms: Approving 403b

deduction/Declining 403b participation24

Most Frequent Comments Payroll (con’t)

Worker: Independent contractor or employee?

Gift cards to volunteer musicians/catechists

I-9s not properly completed

Fr.’s Annual Housing allowance letter forgotten

Employee bonuses not on W-225

Most Frequent Comments Disbursements (Non-payroll):

No approval noted

Lack of supporting documentation

• Mileage: Need purpose, start & destination pts.

Missing 1099s and W-9s

Use Tax not paid26

Most Frequent CommentsRaffles/Bingo:

Gambling license needed

Sales tax owed on ticket sales

W2-G: Fed and State: Based on prize/ticket $

Annual Gambling Report : State: Due in Jan.27

Most Frequent Comments IT

Not using separate computer for online banking or

using the banking computer for online browsing

No written password policy

No email spam filter; anti-virus not current;

multiple anti-virus software packages

No established back-up procedures28

Most Frequent CommentsOther Comments

Bookkeeper also a signer on bank accounts

Payroll withholding accounts with old balances

Fin. Council: Missing minutes or < 4 meetings

FC does not get Dedicated Accounts Statement

Dedicated Account balances not remitted/in error29

Vehicle & Driver Safety Policy

Too complex??

Purpose: Provide for the safety of the drivers driving on behalf of the church and any passengers.

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Vehicle and Driver Safety Policy

Applies to 2 groups:

Employees

Volunteers

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Vehicle and Driver Safety Policy

Employees: If expected to drive for job

Meetings

Purchase of church/school supplies

Drive to bank32

Vehicle and Driver Safety Policy

Volunteers: If driving on a “regular basis”

Eucharistic minister

Purchase of church/school supplies

Faith Formation retreats/activities

Bank deposits33

Vehicle and Driver Safety PolicyWhat is needed for prospective drivers:

Valid driver’s license (at least 21)

CMG’s Defensive Driving online course

Motor Vehicle Record (MVR: Dio or CMG)

Private Vehicle Use App

Volunteer Driver App (volunteers only)34

Questions

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