Financial Audit

From LDSClerks

Financial Audits are conducted twice per year by assigned auditors under the direction of the Stake Audit Committee.

Contents 1 Stake Audit Committee 2 Stake Auditors 3 Auditing Schedule 3.1 Mid-Year Audit 3.2 Year-End Audit 4 Who is Responsible? 5 General Procedure 6 Training

[edit] Stake Audit Committee

The Stake Audit Committee is chaired by one of the counselors in the Stake Presidency.

Another two members of the Stake Audit Committee should be stake members who understand finacial matters (see CHI Book 1, page 161).

[edit] Stake Auditors

At least two stake auditors should be called by the Chairman of the Stake Audit Committee. They are approved by the Stake Presidency and High Council (see CHI Book 1, page 161).

[edit] Auditing Schedule

Units are audited twice per year.

[edit] Mid-Year Audit

• Audit period is January-June
• Audit conducted in August
• The Stake Audit Committee then reviews the audits and assigns follow-up on instances of failure.
• Completed audit should be returned to the Area Office by the end of September.
• By the end of October a report of exception resolution should be returned.

[edit] Year-End Audit

• Audit period is July-December
• Audit conducted in February (of the following year)
• The Stake Audit Committee then reviews the audits and assigns follow-up on instances of failure.
• Completed audit should be returned to the Area Office by the end of March.
• By the end of April a report of exception resolution should be returned.

[edit] Who is Responsible?

The Stake Audit Committee, selected by the stake presidency and high council, is responsible for ensuring that audits of all units, including the stake itself, and any family history centers in the stake, are carried out according to policy and time scheduling.

[edit] General Procedure

The audit consists of a written checklist of questions, to ensure that proper financial procedures have been followed. The auditor(s) schedule the audit with the unit financial clerk and bishop or branch president; a number of the questions require the unit leader's personal answer. The more detailed questions of the clerk will extensively review documentation, including receipts for expenses paid, Church Unit Financial Statements and reconciliation reports, tithing slips, and related records.

Reconciliation of financial statements must be up to date (through June for mid-year audits, or December for full-year audits), or much of the audit will be useless.

The unit "Other" account will be examined in detail; the detailed Income and Expense Report on the amounts allocated for all "Other" subcategories must be printed from MLS to complete the audit.

The audit forms (stake, ward, FHC) can be printed from MLS (Other Resources, Church Audits). The audit form is also available on-line at the Church website (as part of the large download of all the Record-Keeping and Auditing Training lessons). Newly called finance clerks can print the form and use it as a guide to help them prepare during the year for upcoming audits.

[edit] Training

The Record-Keeping and Auditing Training available at lds.org contains several lessons relevant to auditors:

• The Stake Audit Committee
• The Stake Auditor
• Several lessons under Keeping Financial Records
• The financial section of Frequently Asked Questions about Record Keeping