• Churches are required by law to maintain accurate books.church image by pearlguy from Fotolia.com
  
  Church administrators and pastors know that churches have two sets of obligations: to God and to the civil authorities of the society in which they exist. To meet those obligations, churches must maintain accurate records of their budgets, activities, and all other fiduciary relationships. An audit is an opportunity for a church to examine itself and its stewardship of finite resources.
  
  

Cash Receipts and Balances

• Cash receipts must be tabulated, including contributions from collection plates, philanthropic donations and annual appeals. This should include both cash on hand and year-end balances. All checking and savings accounts should be assessed and their statements reviewed.
  
  

Property and Other Assets

• Any audit will require a full listing of church-owned property (including the building, furnishings, and equipment) along with its estimated value. Statements should also be prepared on the value of any loans taken out by the church and associated repayment schedules. The audit will also look at documentation on insurance policies that cover the church's assets.
  
  

Payroll

• The audit committee should document all employees on the payroll and note whether they are self-employed or employed by the incorporation of the church. The committee should also ensure the integrity of all payroll deductions and that annual returns have been filed with the federal and state tax authorities.