This section is added to the help file in order to point out how good audit and control procedures can be used in conjunction with ChurchBook/DataBase. At the outset it should be realized that any system that has manual involvement is subject to misuse. ChurchBook is designed to enforce certain standards, but also to be sufficiently user-friendly as to allow non-accountants to use it. Unfortunately, user-friendliness also means that it is possible to manipulate the system. The easiest way to prevent this is to follow routine monthly procedures that are designed to detect any misuse of the system at the time it happens.

The foundation of these procedures is to ensure that someone other than those who process the income and write the checks reconciles the bank statements and the ChurchBook accounts each and every month. The simplest approach to this is to appoint an internal auditor with the stated responsibility of doing a monthly audit of the church finances, independent of the treasurer. To do this, the bank statements should be turned over unopened to the internal auditor. His job should include verification of:

Deposits: Ensure that the Deposits in the Reconciliation Form agree with the deposits and Journal Entries shown on the banks statements.

At the time of distribution of the quarterly statements, a note should be included requesting each donor to review his statement, and notify the responsible audit person if any entries are in error, either in amount or the purpose for which is recorded on the statement.

Withdrawals: Upon receipt of the monthly check statements, each check should be compared to the monthly check register(s) to ensure that the payee on the check, and the net amount of the check agrees with that recorded in the check register.

After all returned checks are so accounted for, the returned checks can be entered in the Bank Reconciliation procedure, along with late deposits and the statement balance in order to reconcile the ChurchBook balance with that of the bank. Note that this must be done for all accounts, not just the main checking account.

Finally, the various Asset Account Balances from the bank (and investment) statements should be reconciled to the Treasurer's Report of Fund Balances.