Church financial audits provide you the opportunity to take a close look at how your church handles its money. There's nothing to fear about financial audits if you keep these simple tips in mind.
Before the Audit
- Follow the leader. Common sense tells us that what church leaders do in their personal lives is a likely indicator of how they will handle their organizational role as leader. While you will not have access to their personal financial records, you should pay attention to any visible indicators that church leaders are not good money managers.
- Establish expense controls. Safeguard funds by dividing duties. No one person should have the authority to approve purchases, issue funds, and sign checks.
- Separate funds. If your church has trust or endowment funds, those funds should be handled through a separate bank account.
- Create a spending policy. Your church should have a written spending policy in place that addresses treasurer terms, expense reimbursement and benevolence funds.