March - April 2016

This scenario provides a degree of internal control. However, it requires that the church place significant trust in the finance director and business administrator. Since “trust” is not an internal control, it would be advisable for a third person—perhaps a member of the church board—to make periodic surprise reviews of the reconciliations.

Dan Busby is a certified public accountant and president of the Evangelical Council for Financial Accountability (ECFA).

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