Financial Review. Finance Council

Transcription

1 Financial Review PARISH INTERNAL AUDIT Does the parish use Quickbooks software on the Right Network to maintain financial information? Is the accounting on a cash or accrual basis? Are checks issued from the software? Does the parish engage an accountant? What services are provided by the accountant? Bank Reconcilements: Financial Statements: Budget Reports: MIS Reports: Provide financial advice: Attend parish meetings: Does the parish have an engagement letter or contract with the accountant specifying services to be rendered and fees? If a service is not provided, does the parish want to implement a change? Finance Council Ascertain a list of members names and professions is maintained by the parish. Review Finance Council meeting minutes and list the dates of the meeting in the last fiscal year. Verify that an annual financial disclosure to parishioner was generated. Verify that the parish complied with the requirement to submit a Finance Council Certification form to the Vicar General s Office for the most recent fiscal year end. New Energies Initiative Ascertain that the parish submitted their Annual Report for the New Energies Parish Transition Project by physical inspection. Verify that the parish received a response letter from Bishop da Cunha for the Report. Bank Accounts Are all bank accounts on Quickbooks? Are all bank account records in the rectory? Is the mailing address that of rectory? Are bank accounts reconciled monthly on Quickbooks? Verify that: Checks are not permitted to made payable to cash. (Ascertain endorsement if check is made payable to cash.) Sole signatories on the account must be the pastor/administrator. Lay persons may secondary signers. Checks to individuals, exclusive of payroll should be limited and supported by receipts for reimbursement. Is there an adequate separation of duties regarding accounts? Who prepares checks and deposit tickets? Who posts general ledger? Who reconciles the bank accounts? Who is the check signer(s)? If one individual performs 3 or more of the above functions, is there a review of the account detail by an independent third party? Are paid checks, monthly bank statements, reconciliations and deposit slips filed an orderly manner?

2 Are bank account reconciliation maintained at the rectory? Does the parish access this bank account through an on-line banking system? If yes, for what purpose? If the account is accessed for online bill pay, review internal controls to determine that there are sufficient controls in place to ensure an adequate separation of duties between check preparation, issuance and bank reconciliation. At the end of each fiscal year, are bank statements, reconciliations and corresponding paid checks remove from the active file and retained for future reference? Is the use of a rubber signatory stamp prohibited? Is the practice of signing blank checks prohibited? If a signature plate is utilized in a high volume check environment, are the proper controls implemented? Is the check register properly maintained prohibiting the use of pencil? Is the account recorded properly on the financial statement (reconciled balance)? Is interest on the account properly categorized on the financial statement? Petty Cash Reconcile cash on hand and balance in log book to the balance sheet. Is petty cash properly secured during the day and overnight? Where? Is an individual designated as the petty cash custodian? Is documentation on hand to validate disbursed funds? Are the expenses recorded when a replenishment check is issued? Is a petty cash control log utilized to document purchases and cash balance? Is use of a personal credit card or personal funds discouraged when making a purchase on behalf of the parish? Savings & Other Assets Equity investment portfolios are prohibited unless approved by the Office of the Archbishop. If the parish has equity securities, an Archbishop approval letter must be on file. Is documentation available to support all investment vehicles? Is documentation available to support restricted assets? Trade Payables Are payables entered on Quickbooks with an orderly supporting file of invoices available? Test sample payables to physical invoices (date, dollar amount, vendor name etc.) Corporate Credit Cards Determine if the parish has any corporate credit cards. These include the major cards such as American Express, Visa, Mastercard etc and local or national chain stores. Review monthly card invoices for the following: The activity on all statements is supported by individual receipts. The activity is or appears to be business related The cardholder (and the Pastor for non-pastor controlled cards) review and initial the monthly statement The parish/school does not pay state sales tax. The balance is paid in full each month eliminating the payment of finance charges and late fees. Cash advances are prohibited. Determine the credit card(s) liability is reflected in the parish balance sheet. Ascertain credit card(s) are returned when a cardholder leaves their position for any reason.

3 Determine any benefits (i.e. Frequent Flyer or Reward Points) that may accrue as a result of using a credit card(s) are only redeemed for the benefit of the parish and no personal benefits are passed to the cardholder. Credit Card Merchant Determine if the parish/school accepts credit cards as a means of payment for any transaction. If yes, determine controls are in affect to comply with federal requirements guarding against identity thefts. Deferred Income (All funds collected in advance for future use should be placed in a separate account or designated as restricted funds in the operating account. All registration fees collected in advance must be reported as revenue in the applicable fiscal period.) Parish with grammar/high schools and CCD programs must have deferred income. If no deferred income in reports, ascertain when registration/tuition cycle commences. Review detailed subsidiary records and sub-coding of general ledger accounts to ensure that deferred income is properly receipted, recorded and classified. Are there sufficient asset balances to offset the deferred income liabilities? Is deferred income restricted in a separate bank account (preferred) or segregated in another parish account to ensure availability of funds for the designated year? Offertory Determine who collects the monies and where money is placed temporarily until the counting process commences. Describe: Who collects? Where is money kept during mass? Safeguarded? Where is money kept until cash count? How does money get from church to rectory? Evaluate the effectiveness of the internal controls over the counting process. Location/Time of count Number of teams/people for count Are counting teams rotated? Does the count team prepare the deposit slip? Is the count supervised by the pastor or another priest? Are revenue tally sheets utilized? Evaluate the effectiveness of the internal controls over the deposit process. Who deposits money? Is a night depository used? If yes, is key safeguarded? Is an escort used? Does the time of deposit vary? Funds are deposited into what account? Special Collections National Collections: Verify that National Collections are not recorded in the Revenues and Expense sections of the financial statement. Monies collected for these purposes must be listed in Notes section of the financial report. Funds collected and forwarded must equal. Determine the method by which collection funds are categorized in general ledger. (I.e data entered from tally sheet?) Is the parish safe locked at all times when mass offerings are stored? Is access to the safe restricted to parish personnel?

4 Who has the keys/combinations: Are collection monies with one person at any time? PARISH INTERNAL AUDIT Rental Properties Determine that there are lease agreements on file for all leases (except short term). Review to determine that agreements are current and valid and executed by the Archdiocese (Archbishop or VG signature on lease). SHORT TERM RENTALS Does the parish have a hall or party room? Is the room rented? Ascertain that the required contacts are utilized for all short term rentals such as halls or party rooms. Review documentation supporting the purchase of insurance for short term rentals through the Archdiocesan Insurance Department. Are rent checks payable to the parish rather than to an individual? Are lease agreements on file for all term rental properties? Is documentation supporting rentals maintained at the rectory? Are lease agreements affecting real estate and in excess of a one year term approved by the Archdiocese? On parish facilities rented for one-time events, is proper insurance obtained through the Archdiocese Insurance Fund? If no, does the renter submit documentation of self provided insurance? Are receipts provided for any rental payments received in cash? Are convent revenues/expenses reflected in church column unless more than 50% of the residents are assigned to the school? Fundraising Parish Identification Number from the Legalized Games of Chance Control Commission:. Determine the types and number of bingo, raffles or other games of chance. For each grouping of games by purpose type, a unique account must be established at a State or Federal chartered banking institution. Review the municipal license for each game type. Determine that the license indicates the pastor s name and has not expired. Determine that monthly reporting to the Legalized Games of Chance Control Commission is submitted no later than the 15th of the month following the conduct of the game of chance. Review the report for proper completion and accuracy. Determine that the report is reconciled to general ledger before submission. Utilizing the self audit program for collection review, ascertain bingo, raffle and other games of chance proceeds are properly controlled. Revenue and Expenses Determine that revenues reflect the gross proceeds received from the game activities. All game costs, including prize monies, must be reflected as expenses on the financial statement. Determine that game proceeds are utilized in accordance with the stated purpose. Trace a sample of bingo revenue tally sheets to the bank statements and general ledger for accuracy of posting. Review distribution of prize money as follows: Select a sample of game winners: Determine that checks were made payable to the winner in the appropriate manner.

5 Ascertain that IRS form W2G was completed properly: PARISH INTERNAL AUDIT BINGO $0 to $1,199 - no reporting or tax withholding $1,200 and over W-2G form issued, no withholding If $1,200 and over with no tax identification number provided, withhold 31% RAFFLE $0 to $599 - no reporting or tax withholding $600 to $4,999 - W-2G form issued, no withholding $5,000 W- 2G form issued with 25% federal tax and 3% state tax withheld. If no tax identification number is provided, federal tax must be withheld at a rate of 31% An exempt organization must report raffle prizes if (a) the amount paid reduced, at the exempt organization s option, by the wager (the amount a person paid for the chance to win a prize), is $600 or more; and (b) the payout is at least 300 times the amount of the wager. The organization uses Form W-2G for this report. Example 1: Wendy purchased a $1 ticket for a raffle conducted by X, an exempt organization. On October 31, 2004, the drawing was held and Wendy won $900. X must file Form W-2G with the IRS and give a copy of Form W-2G to Wendy. If the winnings exceed $ , determine that federal withholding of 25% and state withholding of 3% were deducted from the proceeds. Review the remittance and reporting of withheld taxes to the IRS and State of NJ. (Federal tax form 945, State submitted with payroll taxes and reported on form W-3) Is a separate deposit ticket utilized when depositing progressive amounts not rewarded but held over for subsequent disbursement? Are all progressive amounts awarded but not disbursed properly reflected as restricted funds in the appropriate bank account? Are admission fees collected at the door with sales of cards, markers and other related products sold at another more secure area away from the front door? Are progressive payouts awarded in checks made payable to the Individual SSN? Is the use of checks signed in blank prohibited? Is a separate alphabetic file maintained for all gaming related expenses? Are payments or tuition reductions prohibited for any individual as a benefit for working games of chance? Are minors restricted from the premises during games of chance? SCRIP Ascertain that a committee has been established for managing and controlling the scrip program. Determine the make-up of individuals managing/control the Scrip Program. # of volunteers # of employees. (The IRS considers Scrip fundraising activities a trade or business. The profits made from the activity are exempt from income tax when the number of volunteer hours is at least 85% of the total number of hours it takes to run the program.) Determine the Scrip program is approved by the Pastor(s). Verify that a separate checking account (not combined with any other financial activity) is used for Scrip?

6 Ascertain that there is a Scrip control log which reflects purchases, sales and inventory on hand. Obtain a copy of a customer order form. Determine a system is in place to assure that certificates are counted on a regular basis and that this reconciliatory inventory is properly documented. Determine that physical inventory of Scrip is adequately protected against theft or loss. State location of inventory: Conduct a physical inventory of Scrip if applicable and reconcile to the control log. Determine Scrip inventory is reflected in the parish/school balance sheet as an other asset. Ascertain that a reasonable dollar limit has been set for scrip inventory and that the inventory levels are periodically monitored. If yes, by whom?. Determine Scrip certificates are sold only on parish/school premises. If certificates/cards are not kept on the premises, then additional controls, i.e., storage, insurance, access, etc., must be established to account for Scrip activity and protect the certificates/cards from theft. List other fundraising efforts: Review the revenue and expenses associated with other fundraising effort. Ascertain adequate cash controls are in place to safeguard and properly record all cash activity. If applicable, discuss cash controls with the treasurer or designated cash handler of parish organizations (Home School, PTA, Societies etc.) sponsoring the fundraising events. Bequests & Wills Ascertain all wills are processed through Archdiocesan Legal Counsel. Diocesan Assessment Collection If the parish has an assessment collection ascertain approval letter from the Archbishop s Office is on file. In addition, determine funds collected and reported are applied as payment to assessment liabilities. Restricted Assets List all restricted assets. Obtain and attach documentation supporting the classification of all restricted assets reflected on the financial report. Determine the requirements of the bequests/grant and the parish s compliance to the terms. This includes all disbursements from the restricted fund asset. Income from a capital campaign If the parish reports income from a pledge campaign ascertain approval letter from the Archbishop s Office is on file. In addition, determine funds collected are used for the intended purpose.

7 CCD/ Language Schools Determine the structure of CCD/language school at the parish as follows: DRE/Director: _ # of Instructors: _ # of Children in program _ Grades & Date of Classes: Registration/Tuition Fees : Date Registration/Fees are collected: Other Sources of Income (Fundraising?): Determine pay scale for instructors. Obtain the detailed subsidiary records of registration/tuition collection and the roster of enrollment. Compare enrollment roster to registration records to ensure that all enrollees are recorded on the subsidiary records. When funds are collected, review controls to determine that the monies are safeguarded from time of receipt to the deposit at the bank. (proof of receipts to control logs acknowledged by giver/receiver (i.e. school to parish) etc.) Ascertain all volunteer teachers, instructors etc have received the full Protecting God s Children Training and certification. Review the reasonableness of expenses. Are registration/tuition fees collected in accordance with guidelines established? If staff is volunteer are stipends, bonuses or gifts provided in lieu of salary? Are all revenues and expenses generated recorded properly? Human Resources Ascertain that all full time and part time lay employees, including substitute teachers, are paid through the parish payroll account with the appropriate federal and state tax deductions. Ascertain employee (or position) is indicated on the parish budget. Review the time sheets for all lay employees paid hourly wages and all non-exempt employees (Salaries less than $23,660 per year or not professionals, executives, managerial administration or computer related.) Review personnel files to determine that tax form W-4 is on file for each employee.

8 Determine that a Homeland Security Agencies (HAS) form I-9 is on file for each employee. I-9 forms must be maintained in one centralized file. Determine employment contracts are executed for principal, school teaching staff (not classroom assistants or aides) and DRE only. Contract terms should be for one year only and not contradictory to RCAN policies (i.e. benefit coverage.) Ascertain that IRS form W-2 is filed annually for all religious and lay employees. Additionally, insure that year end reporting (IRS form W-3 and State W-3) are submitted to the appropriate agencies. Based on total gross pay per pay period, determine that remittance of taxes to federal and state is submitted to the appropriate federal and state agencies in accordance with each entities established schedule and method. (manual payrolls only) Ascertain IRS quarterly form 941is submitted on a timely basis with copies forwarded to the Chancery. Ascertain appropriate severance payments are submitted to the Chancery if full time lay are employed. Review paid invoices for services provided by non parish employees (contracted services) in excess of $ annually to determine if 1099 forms were issued. (Examples of nonemployees include: electrical, plumbing and construction companies, accountants and attorneys, snow removal and landscape services, security guards and referees, and musician for special events.) For parishes which use accounting software packages, this can be accomplished by creating vendor activity reports. Review employees covered by benefits to determine that the following criteria is satisfied: ( Use recent insurance bills for current coverage.) The employee is: actively at work for salary or wages 25 hours per week or more (DOH pre 12/31/09) or 35 hours per week or more (DOH post 01/01/10) and employment is expected to continue for more than five months. Only the lay employees benefit package is provided by the parish. The employee may elect to cover spouse and/or children however all costs must be repaid by the employee. Determine that a payroll deduction is used to reimburse the Parish for all additional health care coverage. Determine if any minor are employed. Ascertain no minor is under the under of 14. Determine working papers executed by the minor s school system is on file for minors 14 and 15 years of age. Validate compliance with employment restrictions per the child labor laws. Ascertain that the State of NJ is advised of all new employees hired after May 1, This must be accomplished with 15 days of hire. Determine if any payroll checks are outstanding in excess of one year. (New Jersey law declares any payroll check outstanding in excess of one year abandoned and therefore, escheatable to the state.) Determine necessary federal and state mandatory employer posters are displayed in the parish.

9 Determine that the parish/school has complied with the New Jersey State law requiring distribution annually of an electronic or written notice to all employees advising them about the New Jersey Whistleblower Law. The obligation of the Law applies to all employers of ten (10) or more employees. There is a requirement that notices also be sent in Spanish. (Law as of September 2004) Determine that the Archdiocesan Harassment Policy Statement is distributed to all employees annually. Are periodic bonuses paid to the employee through the parish payroll account with the appropriate federal and state tax deductions? Are all lay employees paid at least the state-regulated minimum wage ($7.25 as of 7/24/09)? Are employees paid a minimum twice a month and no more than 10 days after the end of the pay period? Are employees provided a statement of deductions made from wages for each pay period? Are non-exempt employees paid time and one half for all hours worked in excess of forty hours in a week, Sunday through Saturday? Is the salary of weekend assistants properly recorded in the Salaries Clergy and Religious section of the Financial Report with appropriate W-2 forms if payment is made through the parish s operating account or with a 1099 if payment is effected through the mass stipend account? Is the Archdiocesan policy regarding Deacon s adhered to; limiting payment to reimbursement of out of pocket expenses and a maximum of $150 per annum for retreats and continuing education? If employees are paid in a manner other than cash, is the fair market value of the payment at the time of receipt included in the employee s gross income? Are all employee reimbursements for out of pocket expenses supported by documentation? Are I-9 forms completed for all new employees within 3 days of hire? Are regulation regarding the hiring of minors adhered to? Are files containing medical records and garnishment records segregated from the employees personnel folder? Are all personnel records maintained for at least six years after the employees termination (Terminated Minors maintained 6 years after the minor reaches 18)? Is the Archdiocesan Office of Human Resources contacted prior to the termination of an employee? Safe Environment Compliance Identify the parish safe environment coordinator who is responsible for ensuring that all employees and volunteers comply with all Safe Environment Policies compliance. Determine that this person has ready access to the Local Safe Environment Coordinator manual. In compliance with the Protecting God s Children Charter Article 2, ascertain that the parish retains documentation supporting that it discloses the procedures for making complaints of sexual abuse in printed form in all languages that the liturgy is celebrated at least annually. Printed form may be published in the parish bulletin or disclosed in a poster in a parishioner assessable area of the church. Obtain the employee roster from payroll system and the list of all current parish volunteers. Identify the types of volunteers/grant sponsored individuals who work with children in the parish:

10 CCD instructors Y N youth ministry assistants Y N sport coach /referees etc Y N class parents Y N home school members Y N language school staff Y N children Mass aides Y N Altar server leaders Y N Scout leaders Y N Tutors Y N Before/aftercare Y N Playground Aides Y N Lunchroom aides Y N Nurses Y N Counselors Y N State Titled individuals Y N Ascertain that personnel files of all employees include an employment application, a signed acknowledgment of the Code of Conduct, Disclosure & Authorization form, criminal background check (Choicepoint or fingerprint results) and a Protecting God s Children certificate. (NOTE: Documentation for clergy compliance is maintained in the Office of Clergy Personnel and is reviewed by an independent party.) Ascertain the method by which parishes identify volunteers who interact with children. (Volunteers may include, but not be limited to, CCD instructors, youth ministry assistants, sport coach /referees etc, class parents, home school members, language school staff, ) Determine personnel files have been established for these individuals and contain a volunteer application, a signed acknowledgment of the Code of Conduct, Disclosure & Authorization form, criminal background check (Choicepoint or fingerprint results) and a Protecting God s Children certificate. (Applies to any individual who is with children more than 5 total hours in a year.) Determine if there are contractual services provided to the parish that have interaction with children such as cleaning and cafeteria services and counselor/tutor and nursing personnel. Review provider s certification of compliance with criminal background check requirements. Documentation Requirements: Criminal Background Checks: (Must be completed prior to date of hire or volunteerism) Disclosure and Authorization Form ChoicePoint Letter from Parish to individual citing results of ChoicePoint verification or a copy of the positive ChoicePoint result. Or The above two requirements may be substituted with fingerprint verification form for teachers only. Protecting God s Children: Protecting God s Children Training Certificate In the event of a negative response from ChoicePoint, is the Archdiocesan Director of Communication notified immediately for further action? Is a mechanism in place to identify and record parish volunteers who interact with children? Accounts Payable Ascertain that a separate alphabetic paid invoice file is maintained for the church, school and/or cemetery.

11 Determine that each invoice reflects the date paid, check reference number, and the amount of payment. Additionally, each invoice must be initialed by the pastor as authorization for payment. For school invoices, determine that invoice is also initialed by the school principal verifying the receipt of the material or service. Determine that invoices do not indicate state sales taxes (utilities excluded) as parishes are exempt. Review a list of all vendors generated from the accounting system. Identified a sample of unknown local vendors. Validate the vendor existence using the internet, telephone book or other independent measure. Are invoices removed from the active files at the end of each fiscal year and retained for reference purposes? Are all purchasing activity pre-approved by the pastor? If purchasing activity is approved by another individual, have guidelines been established identifying dollar amount restrictions, vendor restrictions and other pertinent information? Is RCAN pre-approval obtained on the following? individual purchases, repairs, and/or capital expenditures exceeding $ ($15,000 for subsidized parishes) all asbestos and fire safety code work all liturgical repairs and renovations Do invoices reflect the billing address of the parish? Insurance Review Property Insurance Determine the most recent property insurance invoice accurately reflects a listing of parish property. Vehicle Insurance Ascertain vehicles indicated on the auto insurance invoice are used strictly for parish purpose. Physically inspect all parish vehicles. Compare the vehicle identification numbers on the insurance policy to the vehicle. Review of the Certificates of Ownership for all parish (not clergy owned) vehicles to ensure that the documents are properly safeguarded and the owner is listed as the parish. List vehicles owned by each parish priest and review insurance billing invoices to determine properly liability coverage has been obtained. If vehicle is not covered under Archdiocesan plan, obtain a copy of the priest's private insurance policy to ensure coverage is adequate. Underground Storage Tanks Determine if the parish has underground storage tanks (UST) which have been decommissioned or are no longer used. Athletic Program Does the parish sponsor children sport programs? Y N If yes, name the programs and the number of children in each program (use additional sheet if necessary):

12 Type of sports # of children in program Do any of the sports programs participate in a league? Y N If yes, name the sport and the league. Type of sports League name Who supervises the sports programs? Type of sports Supervisor Name # of assistants What body governs the sports programs (makes rules, schedules etc.)? Are there any adult CYO leagues? Y N Other Insurance Concerns Are there any parish facilities that are rented on a short term basis to non-parish sponsored events involving 3 rd parties? If yes, approximately how many per year? And type of events? Does the parish have a carnival? If yes, when at what site and for how many days? Does the parish have bingo? If yes, how often? Times and days of the week? Are there any child day care programs other than programs sponsored by the parish school? If yes, where is the program located? How many children attend? Are there counseling programs held on parish premises? If yes, what type of programs? Are fees charged? Is the counselor a paid staff member? Does the parish sponsor a nursing program? If yes, number of nurses in the program? What types of services are provided? Are nurses employed by the parish? Are there any insurance policies purchased other than through the insurance program of the Archdiocese? If yes, what types of policies? Are there any trampolines or swimming pools ( including for summer programs) on parish property? If yes, where are they located?

13 Are there stadiums? if yes, what type of stadium? Where is stadium located? Are there playgrounds on parish property? If yes, where are the playgrounds located? In what condition is the playground? Type of equipment on playground? Does the parish own vacant land? If yes, location and square footage of property? Does the parish sponsor programs such as: Yes No Meals on wheels Soup Kitchens Eldercare Immigration assistance Resale or Thrift Stores Special transportation services Sacramental Records Ascertain the location of the parish s Sacramental records (Baptisms, Communions, Confirmation, Weddings and Funerals.) Ensure that the records are a maintained in a locked, fire proof safe or file cabinet. Review the physical condition of the records to determine that the documents are properly maintained as these are permanent parish records. The following questions are asked of the Pastor. The questionnaire is then acknowledged with the signature of the Pastor. Financial Reporting Are parish financial report prepared and submitted to the Archdiocese of Newark for period ending 06/30 (complete)? Is an annual budget prepared by May 31 st for the upcoming fiscal year? Does the parish accrue and report the items at the end of each fiscal year? a.) uncollected income (receivables) and offsetting revenues b.) unpaid bills and the corresponding expenses c.) prepaid expenses not used in the fiscal year d.) revenues that were collected but not used in the fiscal year Is the financial activity (revenue, expenses, assets and liabilities) of the church, school and/or cemetery reported separately on the financial statement? If the parish has a school, is the principal a participant in budget preparations? Does the parish maintain a cash receipts journal, cash disbursement journal, general ledger and payroll register? Does the parish render an annual financial disclosure to the parishioners? Is the quarterly Statement of Balance Report distributed by the Chancery reviewed for accuracy? Financial Council Has the parish established a Finance Council operating in accordance with the guidelines established by the Archdiocese of Newark? The Finance Councils consists of (#) members and meetings are held (how often).

14 Review meeting minutes to ascertain if actual vs. budget comparison reports, balance sheet statement and other MIS reports are provided to the pastor and the finance council for evaluation and discussion. Review meeting minutes to ascertain if the council is involved in the budget process. Operating Matters Is the pastor s Administrative Manual updated current and accessible for reference? Is there an adequate separation of duties between the issuance of checks, preparation of deposit tickets, the recording of cash receipts and disbursements and the reconcilement of the bank statements? If a separation of duties does not exist, does an independent party verify all deposits and disbursements to the monthly records and examine the payroll register? Are personnel folders and records maintained in a locked cabinet with restricted access? If the parish maintains records on a personal computer, is the data properly password protected? If a donation of $250 or more is received, is a written acknowledgement forwarded to the contributor within the tax year, preferably at the time of the acceptance of the gift? Are all employees paid through the parish payroll system with appropriate tax deductions? Are only fulltime employees provided benefit coverage? Do employees reimburse the parish for all dependent benefit coverage as well as employee upgraded benefits? Is the taxable amount of priestly business reimbursements in excess of expenses incurred reported on the clergy s annual W-2? If the parish/school has a corporate credit card(s), is the card restricted to key individuals and used only for business purposed with appropriate receipt submitted? Is the parish/school sales tax exemption used only for parish/school purchases and not for personal purposed for any individual? Physical Security Does the parish have a fireproof safe to stored assets of value including collection proceeds? Are parish property such cash, checks, Scrip and other property with monetary value properly safeguarded at all times? Is the combination/key to the parish safe restricted to essential personnel? Are parish owned vehicles properly secured and is usage restricted for business purposes only? Are parish premises alarmed? Are alarms periodically tested? How often? Are keys to parish buildings restricted to essential personnel?