Accounting Solutions & Practices

Transcription

1 Accounting Solutions & Practices Presenters Pastor Tina Egans and Chaundra Perry, CPA, CTP

2 Scripture Focus 20For we are on our guard, intending that no one should find anything for which to blame us in regard to our administration of this large contribution. 21 For we take thought beforehand and aim to be honest and absolutely above suspicion, not only in the sight of the Lord but also in the sight of men. II Corinthians 8:20-21 amplified

3 What do you See

4 How Many Animals Do You See???

5 How Many Animals Do You See??? 14 Animals 1 Man 1 Woman 1 Elephant Blue: 4 Swans Light Blue: 1 Tiger Pink: 2 Fish Red: 1 Wolf Yellow: 1 Rabbit Orange: 1 Goat Purple: 1 King Cobra HOSTED BY: BISHOP I.V. HILLIARD & PASTOR BRIDGET HILLIARD

6 Internal Controls What Preventive Controls Detective Controls Corrective Controls

7 Internal Controls Why Reported Church Fraud is Growing by almost 6% Reported Approximately 80% of Church Related Fraud Goes Unreported Reported $39 Billion in Church Related Financial Fraud in 2014 Reported Church Financial Fraud Expected to Reach $60 Billion by 2025 Reported Median Fraud Case Results in Loss of $145,000

8 Internal Controls Why Bookkeeper at a local Catholic Church embezzled $364,000 over a 5 year period by writing fraudulent checks to a small business she owned Accounting Manager at a California First Assembly of God skimmed cash from the weekly collection totaling $2.1 million over 13 years A financial secretary at a local First Baptist Church stole $1.5 million over 2 years by writing checks made out to Cash and then pocketing the funds. A Church Office Manager in California made out with $600,000 in unauthorized credit card charges. Church Treasurer diverted $1.3M of church s funds into an investment opportunity known to law enforcement as the Nigerian advance fee scheme

9 Internal Controls How Restricting System Access Segregation of Duties Dual Signature Company Checks Bank Reconciliations Purchase Order Authorization Supervisor Review Internal Audits Locks and Security Codes Written Policies and Procedures Month End Close

10 How Embezzlement Occurs: Poor Internal Controls 00/0213/embezzlement_checklist2009.pdf

11 What do you see

12 Purchase Orders POs

13 Purchase Orders What? Document Issued by Buyer to Seller Indicates Details Product or Service Quantities Agreed Prices Delivery Date

14 Purchase Orders Why? Enhance internal controls Approve cost before incurred Vendor Accountability Provides the vendor with detailed information and instructions Ensures that suppliers deliver exactly what was ordered Helps track a missing shipment Makes paying the vendor much easier Prevents payment of invoice prior to receipt of merchandise or service Prevents erroneous payment of sales and use tax Can readily determine products on backorder Creates an easy to follow paper trail Save your staff time Predictability

15 Purchase Orders How? Word Purchase Order Template Excel Purchase Order Template 2 Part or 3 Part Form Generated via Accounting System Log

16 Purchase Orders Process Get Quotes from Vendors Submit Purchase Request Obtain Approval Notify Vendor of Discrepancy Goods Received / Service Completed Not In Accordance with Terms Notify AP In Accordance with Terms Notify AP Vendor Forwards Invoice with PO number AP matches invoice to PO AP confirms goods received / service completed Create PO Dispute Resolved Send PO to Vendor Notify AP

17 What do you See

18 There is an animal hiding in each sentence between two or more words. Can you find the animals 1. We can go at six o'clock. 2. It's nice to do good deeds. 3. Take soap and a towel. 4. Most rich people wear fancy clothes. 5. You can keep the watch or sell it. 6. Use a ladder. 7. It will be a rainy day. 8. I came late. 9. Tell me if I should start now. 10.Will a map help you?

19 There is an animal hiding in each sentence between two or more words. Can you find the animals 1. We can go at six o'clock. 1. Goat 2. It's nice to do good deeds. 3. Take soap and a towel. 4. Most rich people wear fancy clothes. 5. You can keep the watch or sell it. 6. Use a ladder. 7. It will be a rainy day. 8. I came late. 9. Tell me if I should start now. 2. Dog 3. Panda 4. Ostrich 5. Horse 6. Seal 7. Bear 8. Camel 9. Fish 10.Will a map help you? 10. Llama

20 Monthly Financial Close

21 Monthly Financial Close: What? Set Of Tasks Done to Officially Close-out The Accounting Period And Report The Financial Status Of The Organization Typically Occurs A Number Of Days In The New Month Process And Timeline Differs Among Organizations

22 Monthly Financial Close: Why? Achieve Better Results Financial Accounting Standards Require Organizations to Maintain Financial Information in Specific Accounting Periods Achieve a Proper Cutoff Of Each Month s Financial Activities Provide Accurate and Timely Financial Reports Identify Problems

23 Monthly Financial Close: How? Plan Monitor Measure Modify

24 Monthly Financial Close Schedule AUGUST 2015 MONTH END CLOSE SCHEDULE Task Person Responsible Calendar Date Due Close Date 1 Payroll files and reports submitted to Accounting HR 72 hrs after 09/03/2015, payroll end Thursday date 2 Bookstore reports submitted to Accounting Bookstore 3 rd 09/03/2015, Thursday 3 Recurring Month-End Journal Entries Posted Controller 4 th 09/04/2015, (see tab 3) Friday 4 Invoices Posted Accounts Payable Clerk 7 th 09/07/2015, Monday 5 Credit Card Purchases Posted and Accounts Reconciled Accounting Clerk 7 th 09/07/2015, Monday 30 Final Day to Record Adjustments 10 th 09/10/2015, Wednesday

25 Monthly Financial Close Process 1. Enter Transactions 5. Prepare Reports Enter Transactions During the Month 2. Review / Reconcile Accounts for Completion and Accuracy 4. Close Accounting Period 3. Correct Errors

26 Monthly Financial Close Review / Reconcile Accounts for Completion and Accuracy Bank Reconciliation General Ledger to Sub-ledger Reconciliation Fixed Asset Inventory Accounts Payable Accounts Receivable Contributions Reconcile Balance Sheet Accounts

27 Monthly Financial Close Close Accounting Period Prevents Accidental Posting to Incorrect Period Account Balances Locked Replicate Reports Two Periods Open During Close Closing Month Current Month After Close, only Current Month Open

28 Monthly Financial Close Schedule Prepare Reports

29 What do you See

30 What Object Has Keys That Open No Locks, Space But No Room, And You Can Enter But Not Go In?

31 What Object Has Keys That Open No Locks, Space But No Room, And You Can Enter But Not Go In?

32 Pastor Tina Egans

33 Confidentiality Agreement, Employee agrees that in the course of his/her employment as an under this agreement, Employee may and will come into personal knowledge and or possession of business confidences and secrets of ( the Employee ) agrees that the same are the exclusive property of Employer, and the Employee agrees to keep the same inviolate, confidential, and secure at all times. Violation of this agreement is grounds for immediate termination Employee s Signature date Employee s Printed Name

34 Accounting Room Layout

35 Things that should not be brought into the accounting room or any other personal items. Bags Jackets Wallets Purses

36 Supplies for Accounting Room Envelope Opener Calculators

37 Black/Red Pens Deposits Slips

38 Currency/Coin Counter Currency Rack

39 Security Bags

40 Vault Slips Checks: TO VAULT CURRENCY COIN 100 $ TOTAL Date: TOTAL Teller:

41 Church Stamps Pay to the Order of Bank Name City, State, Zip Code Bank ABA Routing Number Account Name Accounting Number

42 Procedures for Counting Offering

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44 At least two accounting employees should be present. Locks for the offering room 2 different keys same person do not have both keys

45 Uncollected Offering Returned Checks Declined Credit Cards Pledged Offerings

46 Accounting Forms

47 FORMS Check Requisition Petty Cash Request Voucher Credit Card Use Approval Form Purchase Requisition Order Travel Expense Log Wire Transfer Opening Bank Accounts

48 Government Reporting Forms Sales Tax Exemption Form W W-2 Meet all Deadlines

49 Open Session Q& A

50 Open Session Q& A