Church audit checklist: how the finance committee checks the books

Before the accounts reach the members' meeting, someone who doesn't handle the money should check them. Depending on the church, that's a finance committee, an audit committee or two appointed members. They don't need to be accountants. They need a method, some time and the right documents. This checklist is for anyone asked to do it for the first time.

What the finance committee is for

The exact role is in the church's constitution, and it's worth reading before the first meeting. In general, the committee checks that what was recorded really happened, that each expense has a receipt and that the money was used as the church decided.

Checking protects the treasurer as much as the church. Accounts that have been checked end doubts before they turn into corridor talk. An internal check like this doesn't replace an external audit where the law or the constitution requires one.

What to ask the treasurer for

The report for the period, with income and expenses by category.
The statement for each bank account, from the first to the last day.
The cash count at the end of the period.
The count sheets for the offering at each service.
The invoices and receipts for each expense.
The decisions of the church or the leadership that approved the larger spending.

The checklist, step by step

Opening balance: is it the same as the closing balance of the previous period, already approved?
Closing balance: does each account match the bank statement and the cash count?
Income: do the service count sheets add up to what went into the cash box and the bank?
Expenses: pick some, or all of them if there are few, and find the receipt for each. Amount, date and payee must match.
Categories: is each expense in the right place? A sound desk entered as maintenance distorts the report.
Large spending: did it have the approval the constitution asks for?
Expenses without a receipt: are they listed, each with its explanation?

Signs that call for a question

None of them proves a mistake. They just call for an explanation.

Cash payments without a receipt signed by the person who was paid.
Round, repeated amounts with no description.
A transfer between cash and bank that shows up at one end and not the other.
An offering recorded long after the service.
An entry deleted or changed without explanation.
Church money in a personal account, even for a few days.

The report to the members' meeting

Once the check is done, the committee writes a short report: the period checked, what was examined, what was found and the recommendation, to approve the accounts or to approve them with reservations. Everyone who checked signs it.

If there is a reservation, say what it is and what the treasury will do to put it right.

How Atrium helps

In Atrium, the treasurer produces the monthly dossier: a PDF with every record and the receipt for each one, in a single file. The committee checks the whole month without a folder of papers. The report comes out in Excel and PDF, by category and by account, each Sunday count keeps its signed sheet, and every change to a transaction stays in the history.

Frequently asked questions

Who can serve on the finance committee?

Whoever the constitution names. Usually members who don't handle the church's money and aren't close relatives of those who do.

Does the committee need to check every receipt?

In a small church, you can check them all. In a larger one, check every large expense and a sample of the rest, chosen by the committee, not by the treasurer.

What if the committee finds a mistake?

Ask the treasurer for an explanation before drawing any conclusion. An entry error is fixed with a new record, keeping the history. If there's no explanation, the report carries the reservation for the members' meeting to decide.