2014 ANNUAL FINANCIAL REPORT

Transcription

1 Parish/School # 2014 ANNUAL FINANCIAL REPORT Diocese of Des Moines Finance Department Parish/School: City: Contact: Phone:

2 Annual Financial Report Instructions This report covers the fiscal year July 1, 2013 to June 30, All year-end entries should be posted and account reconciliations completed before reviewing the Financial Statements with the Finance Council. Once the Finance Council reviews and approves the Financial Statements, the year-end closing process should be completed. The following information should be presented to the Pastor/Principal, Finance Council, and trustees by August 31, 2014 for their review and approval: Statement of Financial Position: June 30, 2013 and 2014 balances Statement of Dedicated Accounts: June 30, 2014 Statement of Activities: Year to Date, June 30, 2013 and 2014; Annual Budget June 30, 2014 The following Annual Survey, completed This completed Annual Financial Report should be sent to the Diocese of Des Moines Finance Office at 601 Grand Ave., Des Moines, Iowa by September 15, Annual Survey The following survey should be completed by the Pastor/Principal and parish or school staff with the assistance of the Finance Council. Check Yes, No, or N/A in response to each question or fill in the requested information. SECTION A: ACCOUNTABILITY YES NO N/A 1. Did the Finance Council meet at least quarterly in fiscal year 2014? 2. Did the Finance Council maintain written minutes of each meeting? a. Are minutes available to parishioners/parents upon request? 3. At each meeting, did the Finance Council review full and complete financial statements (see above)? a. Did statements compare year-to-date actual income and expenses to budgeted amounts and prior year amounts? 4. Does the Finance Council consistently review long-term debt and payment plans? a. If No, does the Finance Council plan to do so for the new fiscal year? 5. Was the Bishop's approval obtained before: a. Spending in excess of $50,000 on any capital or expense item? b. Undertaking a capital campaign in excess of $50,000? c. Selling parish/school property worth in excess of $25,000? d. Executing any loan/mortgage? 6. Please explain any "No" answers: 7. Were all collections taken up for other individuals, organizations, or entities, including Second Collections, remitted within one month of collection? 8. Did the Finance Council approve an annual operating budget for fiscal year 2015? 1

3 SECTION B: TRANSPARENCY YES NO N/A 1. Were the approved budgets communicated to parishioners or parents? a. Date approved budgets were communicated: b. How were they communicated? 2. Are all bank and investment accounts reported on the parish s/school s financial statements (Including CDs and any Altar & Rosary and Home & School accounts)? a. List all bank and investment accounts NOT on the Statement of Financial Position 3. Does the parish/school sell Scrip? (if No, please move to question 4) a. Current Scrip balance on hand? b. How is Scrip secured when not being used? c. How is Scrip normally sold? (e.g. after Mass, during school day, etc) d. If the Scrip discount is returned to purchaser via tuition credit, charitable contribution, or cash rebate, does the purchaser sign a written agreement? e. How often is scrip counted and compared to inventory records? f. Date of last Scrip count and comparison to manual Scrip inventory records: i. Was there a difference noted? ii. If so, how much? g. What % of time spent on scrip was done by volunteers (include preparation of any checks and GL recording)? i. If <100%, do volunteers and paid staff document their time spent on Scrip? 4. Is all long-term debt recorded on the Statement of Financial Position? 5. Were fiscal year-end financial statements that were approved by the Finance Council, presented to parishioners, parents and/or patrons? a. If Yes, when were the last ones presented? b. If No, when will they be presented? 2

4 YES NO N/A 6. Does the parish/school have any foundations or endowments? a. Is the Bishop of the Diocese of Des Moines listed as the President of the foundation? b. In FY 2014, were there any changes made to the articles of incorporation or by-laws of existing foundations? c. In FY 2014, were any foundations or endowments established? i. If yes, please list the name and federal identification number: SECTION C: INTERNAL CONTROLS The Pastor/Principal ensures integrity, ethics, competence, and other factors of a positive control environment. The Finance Council provides direction, guidance and oversight to the Pastor/Principal in this regard. Together they are responsible for the overall adequacy of the internal control system and the functioning of that system. To be effective, the Pastor/Principal and Finance Council must communicate by word and deed the importance of the internal control environment in the parish/school. The United States Catholic Conference (USCC) has provided internal control guidelines for dioceses which are useful for all organizations in a diocese. Environmental Controls 1. Do the Pastor/Principal and Finance Council accept responsibility for reviewing the effectiveness of the parish s/school s internal control systems? Information Technology (IT) Controls If your parish/school does not use a computer or electronic devices please move to Operational Controls. **Contact your parish/school IT person if you need help with any of these questions. 1. Does the parish/school participate in online banking? (If No, please move to question 2) a. Do all online transactions require the authorization of two people? b. Does this bank account include overdraft protection? c. Are all online transactions executed from a device that is not used for any other internet activity? 2. For all technology devices connected to the internet, are the following security protections installed and updated regularly: a. Firewall (Guards against outside attempts to access your system.) i. Name & Expiration Date of Firewall ** b. Anti-virus (Protects from viruses that can destroy your data, slow your computer s performance, cause a crash, or even allow spammers to send through your account.) i. Name & Expiration Date of Antivirus ** c. Anti-Spyware/Anti-Malware: (Protects from malicious spyware that monitors online activities and collects personal information while you are on the internet.) i. Name & Expiration Date of Anti-Spyware/Anti-Malware Program ** d. Spam Filter: (Guards against unwanted, harmful s.) i. Name & Expiration Date of Spam Filter Program** 3

5 3. Does your password policy include the following: (All applications should be password protected) YES NO N/A a. Password activated screen saver/hibernate on each computer b. Password activation on smart phones c. No sharing of passwords, enforcing strength requirement, and refreshing timelines 4. Technology Management: a. Do you utilize the services of an I.T. staff person/consultant? i. If yes, who? b. Does your technology infrastructure include: i. Server Network ii. Stand Alone PC s (Including laptops) c. Do you have wireless internet? i. If Yes, are your wireless access points secured by boundaries and/or passwords? Operational Controls 1. Are persons with recording responsibilities in ConnectNow Accounting, student accounts, or the ParishSOFT Offerings Module excluded from having access to the following: a. Mass collection monies b. Tuition / fee payments c. Any checking or investment accounts 2. What is the current number of checking accounts in the parish/school? 3. Do you use Primary and Subsidiary checking accounts in ParishSOFT ConnectNow? 4. Does the Pastor/Principal have signatory power on all checking and investment accounts? a. Please list accounts with exceptions: 5. At what dollar amount do checks require a second signature? 6. Is supporting documentation provided for all checks given to the Pastor/Principal, or his/her designee, to sign? a. Is this documentation marked paid, or cancelled in some other manner, after the Pastor/Principal, or his/her designee, sign each check? 4

6 YES NO N/A 7. Are only pre-numbered computer checks used for all cash disbursements? a. If "No," list all accounts not using pre-numbered computer checks: 8. Are all bank statements, including auxiliary account statements (e.g., Altar & Rosary and Home & School), sent directly to the Pastor/Principal unopened? 9. Are all bank statements reconciled monthly by someone other than a check signer or someone who authorizes disbursements? a. If bank statements are reconciled by someone with recording responsibilities, does someone else perform a detail review of the reconciliation? (e.g., matches balances on original bank statements to the General Ledger, and reviews documentation for reconciling items) 10. Are CDs verified at year end with the issuing financial institution by someone without authority to withdraw funds or record transactions? 11. Are assets, such as petty cash, CD or other investment certificates, Scrip, or blank check stock, kept secured and controlled? a. If "No," please explain: 12. Are all investment statements reconciled monthly by someone without authority to withdraw funds? Credit Cards 1. Does the Pastor/Principal and/or Finance Council approve all credit cards and authorized signers? 2. Is a log maintained of vendor/bank cards issued to the church/school? a. Does the log include the total number of cards issued by the vendor and all authorized signers? 2. Are cash withdrawals prohibited? 3. Are all credit cards secured in a locked file or safe when not in use? 4. Are all credit cards used for parish/school purposes only? 5. Before payment, are all statements reconciled monthly to original receipts and reviewed for reasonableness by someone who doesn t have access to their use? 6. Is the purpose of the credit card expense noted on each receipt? 7. Are all credit card balances paid in full each month? 5

7 Mass/Cash Collections YES NO N/A 1. Are tamper-resistant bags used for the following: a. Mass collections? b. Major fundraisers? 2. Is someone responsible for assigning bag numbers to individual Masses/fundraisers and verifying that those were the bags used? 3. Do the cash counters verify that the bags they count are the bags that were assigned to the Masses/fundraisers? 4. Is the Pastor/Principal, or his/her designee, immediately made aware of any unaccounted for bags? 5. Are Mass collections counted by at least 2 unrelated people? (Minimum) 6. Are Mass collections counted by teams that rotate members and weekends? (Better Practice given that the previous control is present) 7. Are all checks received restrictively endorsed "For Deposit Only" with the parish s or school s name? 8. Do any members of the count teams have recording responsibilities in ParishSOFT Offerings/ConnectNow Accounting? Employee Related Controls 1. Does the parish/school have signed W-4s and I-9s for each employee on file? a. W-4 or I-9 questions? Please contact Eileen Valdez at evaldez@dmdiocese.org. 2. Were all employees who worked 20 hours per week or more offered participation in the 403(b) plan with Christian Brothers Retirement Services? a. Which of the four options below has your parish/school chosen to follow? i. 50 % of the employee s contribution up to 3% of salary ii. 50 % of the employee s contribution up to 4% of salary iii. 100 % of the employee s contribution up to 3% of salary iv. 100 % of the employee s contribution up to 4% of salary 3. Were all employees who worked 28 hours per week or more offered participation in the Diocesan health insurance plan? 4. Were Federal and State payroll tax returns and taxes filed on a timely basis? a. If "No," please explain: 5. Has the IRS imposed any late fees or penalties on your parish/school in the past three years? 6

8 FINANCE COUNCIL MEMBERSHIP Please check one and obtain signatures of the Finance Council members affirming the appropriate statement below: Our parish/school was audited by an independent CPA firm and we attest to the following: We have met, reviewed and discussed the audited financial statements and the management letter for the fiscal year ended June 30, 2014 including the recommendations made by the auditors. This report is provided with this Annual Financial Report. To the best of our knowledge, the audited financial statements accurately reflect the financial condition and activities of the parish/school. Our parish/school was NOT audited by an independent CPA firm and we attest to the following: We have met, reviewed, and approved the financial statements for the fiscal year ended June 30, To the best of our knowledge, the financial statements accurately reflect the financial condition and activities of the parish/school. Name, professional titles or occupations, and signature of Finance Council members: Printed Name Occupation Outside of Parish/School Signature Contact information for your Finance Council Chair: Name Phone Address City, State & Zip Names, phone numbers, and addresses of your Trustees: Name Phone Number Address Please copy this page in the event that your parish has a school with a separate Finance Council. 7