GFCA Guide for Annual Audits
Please consult this guide with FAQs when preparing your audit:
Local Church Audit Guide From GFCA
(Grateful for some of the language below that we were given by the NY Conference):
The GNJ Office of Finance & Administration is responsible for ensuring that all financial books, records and bank accounts undergo an annual audit, as required by The Book of Discipline. Please refer to this helpful guide from the GFCA here when preparing your audit. Included in the audit must be the transactions of the church’s operating account, Board of Trustees, preschool (if controlled by the church), Memorial Funds, Endowment Funds, Mission & Outreach Ministries, etc.
The person(s) or committee selected by the Finance Committee to perform the audit is responsible for providing a “full and complete report to the annual Charge Conference.” The membership of the Charge Conference includes all members of the Church Council. This requirement makes the publication of financial statements of all church accounts transparent and available to all members of the Church Council.
In many cases you do not need to engage a CPA or be a CPA to perform the audit. The most important aspect is for the auditor to be “independent.” As described in the audit guide, to be independent the auditor must not handle church funds or prepare church books and records. In addition, the auditor must not be related to, close friends with or subject to the influence of these individuals. The auditor should be appointed by the Finance Committee, to whom it reports.
Many churches make the observation: “If we can’t use people that handle money or are related to, or close friends with those that do, that pretty much rules out our entire congregation!” For small congregations where this is a problem, I suggest performing a cross audit with another United Methodist church in a neighboring vicinity (your church audits them and vice versa).
Audit reports for the preceding year should be provided to your District Superintendent at your next Charge Conference.
Please keep in mind that conducting an audit is not a symbol of distrust. It is a mark of responsibility, good stewardship and sends a message to the congregation that you care about their gifts.