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Internal Review Findings To Date DIOCESE OF DES MOINES CHRISTIE RICE AUGUST 2019 1

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Page 1: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Internal Review Findings To Date

DIOCESE OF DES MOINESCHRISTIE RICEAUGUST 2019

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Page 2: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Internal Reviews: Overview

Started FY 2014

Completed 52/87

Not an “Audit”

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Page 3: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Internal Reviews: Overview

Focus on internal controls

Controls meant to prevent and/or

detect errors

Do confirm all bank and investment accounts

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Page 4: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Internal Reviews: Overview Sample items from major transaction areas:

Receipts (Mass collections)

Disbursements

Payroll

School tuition/fees4

Page 5: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Internal Reviews: Overview

Review items of importance to Fed/State

Review certain diocesan-wide policies:

E.g., Facility Agreements

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Page 6: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Two Most Important Areas

Mass Collections: Life blood of a parish and

important to schools. Multiple steps involved.

Reconciliations: Compare internal financial

records with financial institution’s. Helps

ensure that all activity is recorded.6

Page 7: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Goal: Protect gifts from point of collection to

the point of depositing at the bank.

Step 1: Use pre-numbered Tamper-resistant

Bags (TRBs).

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Page 8: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Pre-Assign TRBs:

Use Bag Tracking Form

Write Mass date and time

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Page 9: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Bag Tracking Form

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Page 10: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Pre-Assigner:

Secure unused, unassigned TRBs

Should have no access to uncounted funds

Ensure counters are verifying TRB #s

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Page 11: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Count Room Readiness:

Room away from the crowd with a door

Everything needed already there

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Page 12: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Always at least 2 unrelated people

Ushers combining gifts into TRB

• Ushers sign TRBs

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Page 13: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Ushers secure the sealed TRBs

Drop Safe

At the Altar

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Page 14: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

2 unrelated counters get TRBs

Take to counting room

Complete Bag Tracking Form

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Page 15: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Bag Tracking Form Finished

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Page 16: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Count Process: Provide detailed instructions

Parish Resource Manual, pp. 18-19

Involve 2 people in each aspect:

Loose checks and cash

Envelopes and contents16

Page 17: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Count Sheet:

Write down totals

Place for Counters’ signatures (legibly )

Place for TRB #

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Page 18: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

3-part Deposit Slip:

One stays in book

One goes with deposit to bank

One goes with count sheet to bookkeeper

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Page 19: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Mass Collections

Counters take deposit to bank

Use pre-assigned TRB

Two Take: Security in numbers

• Not bookkeeper/tithe recorder

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Page 20: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Reconciliations

What’s important?

Timely prep and review of reconciliations.

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Page 21: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Reconciliations

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Page 22: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent CommentsMass Collections:

Not tracking TRBs

Access to uncounted funds

Need more detailed count instructions

Recounts22

Page 23: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent CommentsReconciliations:

No review

Problem with uncleared items

No reconciliation

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Page 24: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent Comments PayrollW-4s not matching with actual pay calculation

Timesheets not being completed/approved

Approval of payroll being processed

Timeliness of 403b payments

Missing 403b forms: Approving 403b

deduction/Declining 403b participation24

Page 25: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent Comments Payroll (con’t)

Worker: Independent contractor or employee?

Gift cards to volunteer musicians/catechists

I-9s not properly completed

Fr.’s Annual Housing allowance letter forgotten

Employee bonuses not on W-225

Page 26: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent Comments Disbursements (Non-payroll):

No approval noted

Lack of supporting documentation

• Mileage: Need purpose, start & destination pts.

Missing 1099s and W-9s

Use Tax not paid26

Page 27: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent CommentsRaffles/Bingo:

Gambling license needed

Sales tax owed on ticket sales

W2-G: Fed and State: Based on prize/ticket $

Annual Gambling Report : State: Due in Jan.27

Page 28: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent Comments IT

Not using separate computer for online banking or

using the banking computer for online browsing

No written password policy

No email spam filter; anti-virus not current;

multiple anti-virus software packages

No established back-up procedures28

Page 29: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Most Frequent CommentsOther Comments

Bookkeeper also a signer on bank accounts

Payroll withholding accounts with old balances

Fin. Council: Missing minutes or < 4 meetings

FC does not get Dedicated Accounts Statement

Dedicated Account balances not remitted/in error29

Page 30: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Vehicle & Driver Safety Policy

Too complex??

Purpose: Provide for the safety of the drivers driving on behalf of the church and any passengers.

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Page 31: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Vehicle and Driver Safety Policy

Applies to 2 groups:

Employees

Volunteers

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Page 32: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Vehicle and Driver Safety Policy

Employees: If expected to drive for job

Meetings

Purchase of church/school supplies

Drive to bank32

Page 33: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Vehicle and Driver Safety Policy

Volunteers: If driving on a “regular basis”

Eucharistic minister

Purchase of church/school supplies

Faith Formation retreats/activities

Bank deposits33

Page 34: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Vehicle and Driver Safety PolicyWhat is needed for prospective drivers:

Valid driver’s license (at least 21)

CMG’s Defensive Driving online course

Motor Vehicle Record (MVR: Dio or CMG)

Private Vehicle Use App

Volunteer Driver App (volunteers only)34

Page 35: Internal Review Findings To Date · Review items of importance to Fed/State ... Fin. Council: Missing minutes or < 4 meetings ... CMG’s Defensive Driving online course

Questions

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