MISSION / ACCOUNTING & FINANCIAL  REPORTING SERVICES / TAXATION / EXEMPT STATUS / MINISTRY TEAM

PRESERVING YOUR EXEMPT STATUS 

A Health Check to Preserve Exempt Status and

Monitor Internal Controls 

1. Are housing allowances approved by the ministry’s board prior to the beginning of the year of the compensation or payment, if hired during the year? 
2. Are there policies to prohibit a retroactive change to a housing allowance? 
3. If a minister’s compensation exceeds $100,000, does the ministry’s board approve a formal compensation study? 
4. Are bank statements received unopened and reviewed by an authorized signer? 
5. Does someone independent of general ledger maintenance review the monthly bank account reconciliations? 
6. Does the ministry maintain a detailed list of capital assets, and is the list reconciled periodically to an inventory? 
7. Are contribution reports, including donor amounts and dates, reconciled to the general ledger? 
8. Does the ministry receive and record cash contributions that the board does not control or approve disbursements on? 
9. Are Christmas bonuses paid by the ministry taxable income to the minister? 

If you answered no to one of the above questions, you may need a formal assessment.