a tribute to doctor john stanley - executive committee
TRANSCRIPT
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A Tribute to Doctor John StanleyAn unrelenting pursuit of Excellence and Service
May 1953 - January 2019
SUD Lay Representative
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our·responsibilityTotal Clients: 2,360
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Completed In Process
our·resources
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work·plan·results
of our portfolio was either completed or in progress at the end of 2018.
60%
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types·of·financial·statement·opinions
Standard/Unqualified Disclaimer
Adverse Qualified
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Most frequent reasons for providing a modified opinion on a financial statement:
• Lack of evidence resulting in a disclaimer of opinion (11%)
• Misstatement of property, plant and equipment (10%)
• Lack of evidence for accounts receivable (9%)
• Lack of evidence for revenue (9%)• Lack of evidence for property,
plant and equipment (8%)
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Reports including violations of core financial policies
Reports not including any violations of core financial policies
types·of·policy·compliance·reports
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Most frequent reasons for reporting a violation of core policies:
• Insufficient monthly financial statements submitted to governing committee and administration (14%)
• Audit committee missing or improperly constituted (13%)
• Conflict of interest statements no signed by all committee members and other designated employees (13%)
• Insurance coverage not in harmony with requirements (13%)
• Service records not all updated and signed (6%)
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Most frequent reasons for documenting internal control weaknesses:
• Lack of reconciliation of accounts (7%)
• Lack of internal controls related to accounts receivable (5%)
• Lack of authorization of transactions (5%)
• Lack of internal controls related to inventory (5%)
• Segregation of duties minimal or inadequate (4%)
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Consensus of Church Leaders
1. Promote a culture of transparency and accountability
2. Revise policies to incorporate best practices
3. Require establishment of Audit Committees
4. Provide training to boards/committees on governance
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SDA Financial Oversight System
Next Higher Organization
Financial Statement Review Committee
Governing Board
Compensation Committee
AuditCommittee
ManagementIndependent Auditor
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Role of Financial Oversight Committees
• To be fully informed about audit matters, financial reporting risks and financial reporting processes
Audit
• To be fully informed about compensation practices within organization and ensure compliance with policies
Compensation
• To be fully informed about the financial health of subsidiary and affiliated organizations
Financial Statement Review
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in·si
ghts
Source: A Global Study of Financial Reporting in the Seventh-day Adventist Church
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Benefits of a Functioning Audit Committee
insight
A functioning audit committee has a significant positive impact on internal control, compliance with financial policies and awareness of fraud
Better internal control
Better awareness of fraud
Better compliance with financial policies
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Organizations with an Audit Committeevs.
Organizations without an Audit Committee
WithAudit Committee
WithoutAudit Committee
62% Clean Opinion
Lower average of repeat significant internal control deficiencies
Lower average of repeat policy compliance violations
39% Clean OpinionHigher average of repeat significant
internal control deficiencies
Higher average of repeat policy compliance violations
insight
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Internal Control and Policy Compliance
The number of policy compliance violations increases as the number of significant internal control deficiencies increases
insight
Significant Internal Control Deficiencies
Policy Compliance Violations
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Working Capital Correlations
insight
The percentage of recommended working capital increases
When the number of
internal control deficiencies or
policy compliance violations decreases
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in·si
ghts
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GCAS·is·involved an evangelistic campaign in Ogbona, Nigeria
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