An annual examination of the parish’s business practices and financial condition ensures that resources are being managed in a prudent and sound manner. It can also identify opportunities to improve processes and reduce risks. The diocesan policy on parish audits has been developed to comply with the national canon on parish audits.

Policy on Parish Audits

Diocesan Guidelines for annual examinations

An annual examination of business practices and financial condition is required for every parish in the Diocese of Atlanta.  There are three forms of annual examinations:

1. Audit by an outside accounting firm.
2. Performance of diocesan specified Agreed-Upon-Procedures by an outside accounting firm.
3. Financial Inspection by an internal committee.

For parishes with annual total revenues of $500,000 or more, an Audit by an outside accounting firm is required annually.

For parishes with annual total revenues between $250,000 and $499,999, performance of diocesan specified Agreed-Upon-Procedures by an outside accounting firm is required annually.

For parishes with annual total revenues between $100,000 and $249,999, performance of diocesan specified Agreed-Upon-Procedures by an outside accounting firm is required every third year. Financial Inspection by an internal committee is required the other two years.

For parishes with annual total revenues of less than $100,000, a Financial Inspection by an internal committee is required annually.

Note that the required level of examination is a minimum standard for each parish of a particular size.  Any parish may elect without diocesan approval to perform a higher level of examination for whatever reason, i.e.  desire of the vestry, a leadership transition, lender requirement, etc.  The Diocese will accept this higher level examination for any particular year as meeting that year’s audit requirement.

All audit reports shall be filed with the diocesan Finance Office not later than 30 days following the date of such report, and in no event, not later than September 1 of each year, covering the financial reports of the previous calendar year.

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Agreed-Upon Procedures

Guide (Word document)

Internal Controls Questionnaire (Word document)

Church Financial Report (Excel document)

Proof of Cash Report (Excel document)

Sample Engagement Letter (Word document)

Agreed-Upon Procedures to Be Performed (Word document)

Sample Independent Accountants’ Report (Word document)

Financial Inspection by Internal Committee

Guide (Word document)

Internal Controls Questionnaire (Word document)

Church Financial Report (Excel document)

Proof of Cash Report (Excel document)

Financial Inspection Procedures Checklist (Word document)

Financial Inspection Committee Certification (Word document)