Ever Been Audited? We Have!

Ever Been Audited? We Have!


By:  Bob Vikse

Does the thought of an audit strike fear in your heart? If so, you’re not alone! Most of us do whatever we can to avoid becoming unwitting subjects. At Faith we view things a little differently. Every year we willingly subject ourselves to audits or financial reviews at the conclusion of the ministry year, engaging an outside CPA firm for this purpose.

Let’s talk terminology. What’s the difference between an audit and a financial review? While both are very good measures of our accounting and reporting practices, an audit is more comprehensive, time consuming and costly. Currently, we conduct an audit on even years and a financial review on odd years. If there are significant changes to our leadership or financial processes, back-to-back audits may be needed.

In either case, a small team of independent auditors is onsite at Faith for about a week with full access to Faith’s accounting system and electronic and hard copy records. The audit team also reviews our operating practices, financial statements, bank statements, meeting minutes (and much more!) from the fiscal year. Once they complete their analysis, they prepare a report and send it to Faith’s leadership for review and to archive for future reference.

Why subject ourselves to such scrutiny each year? The main reason is to ensure we stay accountable for each dollar of income and expense that flows through Faith. Financial integrity is crucial to our mission, and we must ensure that our systems and processes are up to date and in keeping with current industry standards and government regulations. Annual review of our accounting practices is also important to the bank who holds our mortgage. Part of our loan agreement is to supply the lender with independently reviewed or audited financial statements so they can be assured of Faith’s ongoing financial health and ability to fulfill our loan commitment.

So, while the review of our more than 900 pages of accounting entries adds more work and complexity to an already busy start to a new ministry year, it also gives us assurance that we’re on solid ground financially and a chance to learn how we can improve. Strange as it may sound, we get audited all the time - and we are thankful we do!

 

Bob has been a member of Faith for 24 years. He has been Faith’s Administrator for ten years and on staff for 12.

At Faith, Bob serves as a writer for the blog, leads a small group, and serves in the Hospitality and Benevolence Ministries.

Bob grew up in Loveland and loves buying, selling, and detailing cars and spending time in Maui.  



 



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970-226-2095



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