CPA's & Consultants Providing Business Insight To Churches & Ministries

Risk Standards (SAS 104 and 105)

As noted in our previous post, the AICPA has issued several new auditing standards that are applicable for audits ending after 12/16/07. We will briefly discuss the 8 new standards:

SAS 104 – More clearly defines the level of assurance auditors are to provide the client and interested 3rd parties regarding whether or not the client’s financial statements are free of material misstatement. This has not direct client impact.

Ordinary and Necessary Expenses (2 of 2)

In our series of ordinary and necessary expenses, churches and ministries should document lodging and certain incidental expenses (such as cab fares) by receipt and/or other contemporaneous records that include the business purpose of the trip.

Are WE Closed Yet?

I hope our previous post revealed the importance of closing the books monthly/quarterly/yearly. In this post, I will address the closing of the cash accounts and the review of the coding of income and expenses for the closing period for accurateness and reasonableness.

Baptism

A friend of mine took her four-year-old daughter to a baptismal service at her church. Later that night, her daughter took all of her dolls into the bathtub with her and held her own "baptism."
As she dunked each doll under the water, she repeated, "Now I baptize you in the name of the Father, the Son, and hold your nose."

Received from DOC'S DAILY CHUCKLE.

Today is a "hold your nose" day...God Bless!

Inherent Risk Defined

Inherent Risk is defined as "what could go wrong, in the absence of internal controls".

Internal Controls are defined as...systems in place that identify errors and irregularities on a timely basis.

I am the Door

It is Easter morning...and ed young television is broadcasting on the USA network. Ed Young, Jr., is the senior pastor of Fellowship Church in Grapevine. This morning, he launched his series "The Doors" and the sermon text came from John 14:6:

I am the way and the truth and the life. No one comes to the father except through me. NIV

According to Ed, at Fellowship Church, "We celebrate every Sunday, the resurrection of Jesus Christ".

Transparency - What is it?

With Senator Grassley's inquiry with six televangelists, the questions, as documented in press releases, seem to be directed at governance and reporting issues. These two operating areas, independent yet dependent in function, require two important factors, transparency and accountability.

How do you define these terms? In this post and following, we will briefly define and explore these important, vital characteristics for a church.

Transparency is defined well by Joyce Meyer Ministries. Upon walking into their ministry headquarters, the following words are embedded in the concrete:

IRS Rebate checks are really on the way!

In an effort to boost the U.S. economy, Congress passed the 152 billion-dollar Economic Stimulus Act of 2008 on February 7, 2008. The legislation will provide tax rebate checks to about 130 million households, starting sometime in May.

* Single individuals may be entitled to receive a one-time tax rebate of up to $600; joint filers may qualify for up to $1,200.

* The rebate amount begins to phase out for higher-income taxpayers, beginning at $75,000 of adjusted gross income for single filers and $150,000 for joint filers (based on 2007 tax returns).

Contributions - 6 General Requirements - (2 of 6)

In order for a contribution to be deductible for income tax purposes, the contribution must meet 6 general requirements. In our previous post we discussed the gift of cash or property. In our post today we will discuss what types of organizations can receive contributions and provide substantiation to the donor in order to deduct the donation for income tax purposes.

Requirement #2 for contributions is that the donation of cash or property must be made to or for the use of a qualified organization.

National Religious Broadcasters Convention

The NRB national convention is scheduled for March 8-11, 2008, in Nashville, Tennessee. Significant educational workshops, networking with industry specialist and exhibitors, guest speakers and wonderful music are on the agenda. Today, President Bush will be a keynote speaker as he addresses issues affecting the broadcast industry. Stay tuned for a recap of his address...

For more information about the NRB, go to www.nrb.org.