Greater New Jersey Conference Finance Audit Checklist

1. Financial Statements

The conference audits the local churches’ financial statements. If you want to review a sample of these statements, click here. The auditor reviews each firm’s bookkeeping procedures, including the attorney’s trust and business accounts, and reconciles these accounts with the most recent bank statement. The auditor also provides a recordkeeping deficiency checklist and discusses the results of this checklist with the firm.

Expenses per audited financial statements (must match expenses reported on Form 990, Part II)……………. Net unrealized gains or losses on investments……………. Donated services and use of facilities……………. Other changes in net assets or fund balances (described in Schedule O)…….. Other income and deductions……………. Total assets……………. Cash and receivables……………. Other liquid assets……………. Other property……………. Total debt……………. Total liabilities……………. Total equity……………. Operating reserves……………. Total funds……………. Total accumulated deficit……………. Total invested assets…….. Total other current assets……………. Total fixed assets……………. Total other noncurrent assets……………. Capital assets……………. Noncurrent other current assets……………. Noncurrent deferred liabilities……………. Total capital expenditures……………. Capital improvements……………. Total intangible assets……………. Total fixed assets……………. Total intangible assets……………. Capital amortization…………….

2. Internal Controls

Internal controls are the policies and procedures an organization implements to ensure financial reports are accurate, operations run efficiently, and activities comply with relevant laws and regulations. For-profit companies are legally required to implement robust internal controls as reported in their finance statements (10-K). Nonprofits do not need to follow COSO’s framework for internal auditing – though auditors often rely on it – although internal auditors still often rely on its effectiveness for conducting their internal auditing services.

Happytown Thrift Shop’s executive director is worried they don’t have enough resources to invest in creating a robust control environment with separation of duties. When receiving communication of material weaknesses from their auditor, she cringes before remembering the benefits that a strong control environment will bring – click to discover more of how Baker Tilly’s internal audit specialists can support nonprofits!