Annual Financial Review Procedures for Mountain View
This document provides guidance to the MVCC financial review team for the annual review of the
1. Key MVCC Financial Personnel
Chief Financial Officer: The MVCC Chief Financial Officer (CFO), normally an Elder or Deacon, shall
be responsible to the Elder Board for the proper oversight of all MVCC financial activities. The current
MVCC CFO is George Eastwood.
Financial Secretary: The MVCC Financial Secretary, together with the Treasurer or an approved assistant,
shall count and deposit all funds received by the church. He/she shall keep an accurate record of all
receipts. He/she shall keep a record of all known individual contributions, and provide a receipt to
contributors if required. The current MVCC Financial Secretary is Karen Hartman
Treasurer: The MVCC Treasurer shall normally assist the Financial Secretary in counting and preparing for deposit all funds received by the church. He/she shall pay by check all funds provided for in the
budget and authorized for payment by the Board of Deacons. Checks shall be signed by the Treasurer and
any designated member of the Board of Deacons or Elders. He/she shall keep an accurate record of all
accounts. The current MVCC Treasurer is Pam Cram.
Accountant: The MVCC Accountant will provide bookkeeping services to the treasurer as required to keep an accurate record of all accounts. The current MVCC Accountant is Janice Jones.
2. Key MVCC Financial Requirements
a. The counting and recording of all offerings by at least two duly appointed persons.
b. The keeping of adequate books and records to reflect all financial transactions, open to inspection by
authorized church officers at reasonable times.
c. Periodic reporting of MVCC financial activities to the Elder Board vested with financial oversight at
least quarterly and to the congregation at least annually.
d. A full financial review of all books and records relating to finances once each year by a public
accountant or public accounting firm or a committee of members versed in accounting procedures. Such
auditors should not be related to the any of the key MVCC financial personnel.
3. Financial Review Procedures
Terminology in this section is meant to provide general guidance and is not intended to require or not
require specific audit procedures or practices as understood within the professional accounting
This section will provide basic guidelines for the MVCC Financial Review team to conduct an annual
independent financial review utilizing qualified church members who are not related to those who handle
funds on behalf of the church.
A. Items Needed
_____ Bank Account Statements
_____ Bank Account Reconciliations
_____ General Ledger
_____ Beginning and Ending Balances for Special Funds (Memorial, Building, etc.)
(Note Receipts/Disbursements and ascertain that funds have been disbursed for authorized purposes only)
_____ Bank Records and Backup Materials for Special Funds
_____ Cash Receipts Records (Offering Count Sheets)
_____ Paid Invoices
_____ Payroll Records
_____ Checking Account Stubs
_____ Verify that all monthly Bank Statements were reconciled and balanced to the General Ledger
_____ Verify that invoices paid * were properly paid with regard to:
b) Approval by responsible authority (session, pastor, committee chair, etc.)
c) Amount paid – trace to General Ledger
d) Verify that payments were charged to proper account
(* use a selected sample of 6-8 invoices of some variety from each month. If there are no problems, this
should be sufficient. However, if discrepancies are noted, a larger sampling is in order.)
_____ Trace amount from weekly count sheets to bank deposits and trace items from the count sheets
to the various General Ledger accounts.
_____ Select at least one count sheet from each month and apply the same principle to the sampling
as noted above.
_____ Verify that amounts paid to employees and the pastor were in the proper amount as authorized
by the MVCC annual budget/Elder Board and that amounts withheld were subsequently paid to the
_____ If salary advances have been made, were they properly recorded and does the annual salary
paid correspond to the budgeted salary. If the two figures do not correspond, is their an explanation?
_____ Trace amounts paid and withheld to the General Ledger. This can also be done on a sampling
C. Report and Follow-up
When the financial review has been completed, the person(s) carrying out the review shall present a
written report to the Elder Board for inclusion in its minutes. The report will say one of the following:
“We have reviewed the financial records of Mountain View Community Church for (Fiscal Year)
and find them to be in good order and in accordance with generally accepted accounting procedures.”
“We have reviewed the financial records of Mountain View Community Church for (Fiscal Year) and
find the following irregularities: (LIST) We make the following suggestion(s) for correction:
“We have reviewed the financial records of Mountain View Community Church for ( Fiscal Year)
for (YEAR) and find the following irregularities: (LIST) We recommend that the Elders employ the
services of a Certified Public Accountant to assist the church in resolving these irregularities and
bringing the church’s financial records into conformance with generally accepted accounting