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FINANCIAL STATEMENTS

Appropriate OCBOA Financial Statement Titles

ora) Balance Sheet – Cash Basis

b) Statement of Assets and Liabilities arising from cash transactionsc) Statement of Revenue Collected and Expenses Paidd) If using accrual accounting, then use appropriate GAAP Financial Statement Titles

If using accrual accounting, then use appropriate GAAP Financial Statement Titles

Review Procedures Checklist

Church/School: Balance Sheet Date:

Completed By: Date Completed:

Procedures Completed by or N/A Type of Form

Step One

Practical Consideration:

________________

________________

________________

Step TwoIssue Engagement Letter ________________ Form A

Step ThreeReview prior year working papers ________________

Step FourAcquire the necessary knowledge about the accounting principles and practices of the church. Practical Consideration:

• This knowledge can be documented by completing the “Client Information Form”. ________________ Form B

Step Five

________________ Form C

Step SixClients Inquiry Forms ________________ Form(s) D, E, F, G, H:1-3

Step SevenTesting

Step Eight ________________ Form(s) I, J, K, L, M, N, O, P

a. The financial statements include all required disclosures.b. The financial statements are free of obvious arithmetic or clerical mistakes. ________________ Form Q-1, 2, 3

Include on each page of the financial statements the phrase “See accompanying notes and accountant’s report.”Include on each page of any supplementary information the phrase “See accountant’s report.” Practical Consideration:

Instructions: This checklist may be used for all reviews of fiscal year-end and interim financial statements. After each step is completed, the preparer's initials should be placed in the "Completed by" space to the right of the step along with a reference to where the supporting documentation is located. If the step is not applicable, write "N/A" in theat space. If unusual matters are noted, or if additional steps are performed, attach a memo documenting them.

Determine if there is any change in independence. If we are not independent with respect to this engagement, we are precluded from issuing a review report.

• Activities that could impair independence include, among other things, authorizing, executing, or consummating client transactions; exercising authority on behalf of a client; preparing source documents or originating data for a client; having custody of client assets; accepting responsibility to authorize payment of client funds; accepting responsibility to sign or co-sign client checks; or having direct or material indirect financial interests in a client.

• If we are performing non-attest auditing services for an attest client and the client is unable or unwilling to assume responsibility for specific management functions.

If evidence was noted during the review that may indicate a lack of independence, determine that the matter was appropriately resolved and its impact on the engagement appropriately considered. (A lack of independence precludes the issuance of a review report.)

Document inquiries of members of management who have responsibility for financial and accounting matters in order to identify individual items that appear to be unusual and that may indicate a material misstatement.

Drafting the financial statements must be performed under Attestation Review 80(AR80) – completion of Financial Statements. Read and determine whether –

• If a report on the supplementary information is presented, the phrase would read “See accountant’s report on supplementary information.”

Procedures Completed by or N/A Type of Form

Step NineAnalytical Review

a. ________________

b.

________________

c. Document the results of comparisons of significant expectations to recorded amounts. ________________

d.

________________ Form R-1,2,3 & S-1,2,3

Step Ten

________________

Step Eleven

________________

________________ Form C

________________ Form T

Step Twelve

Financial Review Letter ________________ Form U

Step Thirteen

Representation Letter ________________ Form V

Step Fourteen

________________

Step Fifteen

Financial Review Worksheet ________________ Form W

Step Sixteen

Review Reporting Checklist ________________ Form X

Step Seventeen

Technical Reviewer Checklist ________________ Form Y

Step EighteenAuditor's Log SheetDraft the accounts's review report and determine wheter it is appropriate under the circumstances. ________________ Form Z

Apply Analytical procedures to the financial statements to identify and provide a basis for inquiry about the relationships and individual items that appear to be unusual and that may indicate a material misstatement by performing the following:

Develop expectations by identifying plausible relationships that are reasonabley expected to exist based on the understanding of the clien and the industry in which the client operates.

Document significant expectations where those expectations are not otherwise readily determinable from the documentation of the work performed, including factors considered in their development.

Document any additional procedures performed or inquiries made in response to significant unexpected differences arising based on the comparisons and the results of such additional procedures or inquiries.

Document communications, whether oral or written, to the appropriate level of mamangement regarding fraud or illegla acts. If there is an indication that information supplied by the client is incorrect, incomplete, or otherwise unsatisfactory, perform additional procedures as necessary.

If any situations have occurred that require consultation (because conference policy requires consultation or the situation was unusual or complex), determine that such consultation has been properly documented.

If there were differences of professional opinion among members of the engagement team or between the engagement team and a specialist, determine that the differences were properly resolved and documented, and that the documentation addresses the consideration involved in the resolution.

Determine thst all questions, expectations, or notes, if any, posed during the work have been followed up and resolved and review notes and to-do lists have been handled in accordance with church policy.

If any circumstances were encountered that precluded you from performing inquiries and analytical procedures, as deemed necessary, or if the client did not provide you with a representation letter consider whether these circumstances result in an incomplete review and thus an inadequate basis for issuing a review report. If so, consider whether these circumstances would preclude you from issuing a review report.

Procedures

Log Time Completed by or N/A Form(s)Step One a. Reviewer Field work log Form ZStep Five b. Church Accounting System Form CStep Six c.

_________ __________________ _________ Form Dd. General Information Worksheet

Control Procedures _________ __________________ _________ Form Ee. Property Information Worksheet _________ __________________ _________ Form F

Step Seven f. Bank Reconciliation _________ __________________ _________ Form Jg. Adjustment Worksheet- See log sheet _________ __________________ _________ Form Kh. Transaction Test-Checks written _________ __________________ _________ Form Li. _________ __________________ _________ Form Mj. Remittance Worksheet _________ __________________ _________ Form Nk. Disbursements to Pastor _________ __________________ _________ Form Ol. Disbursements to Treasurer _________ __________________ _________ Form Pm.Materiality Worksheet _________ __________________ _________ Form I

Step Eleven n. Reviewers Notes and Recommendations _________ __________________ _________ Form TStep Fifteen o. Subsequent Events _________ __________________ _________ Form WStep Sixteen p. Review Reporting Checklist _________ __________________ _________ Form XStep Seventeen q. Techincal Reviewer Checklist _________ __________________ _________ Form U

In-charge Auditor: ______________________________ Date: ___________________

Date Completed

Interview Questions Worksheet - Control Environment

Income Test (Envelopes, etc.)

All procedures and work-papers have been completed to my satisfaction and are in accordance with church policy.

Form A

Review Exhibit A-Illustrative Engagement Letter

.70 [Appropriate Salutation]

We will perform the following services:Beginning (Date)

You are responsible for

c. preventing and detecting fraud.d. identifying and ensuring that the entity complies with the laws and regulations applicable to its activities.e. making all financial records and related information available to us. (Insert List)

Church Information- Church Federal Tax ID Number(Copy of IRS document)

- Any rental agreements the Church has entered with members, day care providers, renters, school, etc.Financial Reports & Documents

- A current copy of a full backup disk (for treasurers using computer programs).- A list of all outstanding accounts payables and receivables (and their due dates).

- All year-end member receipts (or monthly receipts for treasurers preparing manually). On disk is fine.- Building project contracts, bills and supporting documents; and Evangelism funds supporting documents.- Report of all checks written. Disbursement vouchers and the corresponding receipts/bills/statements.- Insurance bills paid by all insurers (Church Mutual and any other providers). - Ledger book/financial summary of departmental balances (for computerized systems).

- Outstanding loan statements (for both amounts borrowed by the church and lent to individuals).

- Credit card statements along with supporting documentation for expendituresBank Information & Documents

- list of all financial accounts (CD, checking, savings, investment, revolving fund, etc.)

- Checkbooks, check stubs/vouchers.- Canceled and voided checks in numerical sequence.- Deposit slips.

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide.

We will review the financial records of XYZ Church/School/Daycare as of and for the year ended December 31, 20xx, and issue an accountant's report thereon in accordance with Statements on Standards for Accounting and Review Services (SSARSs) as adopted by Columbia Union Conference of Seventh-day Adventist.

The objective of a review is to obtain limited assurance that there are no material modifications that should be made to the financial records in order for the records to be in conformity with (Other Comprehesive Basis of Accounting and accounting principles generally accepted by Columbia Union Conference of Seventh-day Adventist).

a. the preparation and fair presentation of the financial records in accordance with the accounting principles generally accepted by the Seventh-day Adventist Church.

b. designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial records.

- Board /Business/Finance Committee minutes. Names, Mailing Addresses, Emailing of all current Church Board members.

- All IRS forms 1096/1099’s and W-2 filings, if applicable. I-9, W-4, W-3, and 941's.

monthly financial reports.(That are presented to the board)

- Tithes envelopes (bound by weeks and months). Online giving summaries (printed by month) for internet contributions.

- All bank statements (for every account) and the corresponding bank reconciliations. Including current bank statements for current audit period, and subsequent periods.

f. providing us, at the conclusion of the engagement, with a letter that confirms certain representations made during the review.

Form A

Sincerely yours,__________________________________[Signature of accountant]Acknowledged:XYZ Company

_______________________ _______________________Pastor/Head Elder Date

_______________________ _______________________Finance Chair Date

_______________________ _______________________Treasurer Date

Note to Auditor: Please adjust the letter as deemed necessary.

We are responsible for conducting the engagement in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A review includes primarily applying analytical procedures to your financial data and making inquiries of church/school/daycare management.

Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts. However, we will inform the appropriate level of management of any material errors and of any evidence or information that comes to our attention during the performance of our review procedures that fraud may have occurred. In addition, we will report to you any evidence or information that comes to our attention during the performance of our review procedures regarding illegal acts that may have occurred.

If, for any reason, we are unable to complete the review of your financial records, we will not issue a report on such records as a result of this engagement. If we are unable to issue a report a letter will be sent to the church board explaining the reasons why a report was not issued.

We will be pleased to discuss this letter with you at any time. If the foregoing is in accordance with your understanding, please sign the copy of this letter in the space provided and return it to us.

Appendix-Form A

ENGAGEMENT LETTER - REVIEWSEstablishing an Understanding

.03 The accountant should establish an understanding with management regarding the services to be performed for review engagements1 and should document the understanding through a written communication with management. Such an understanding reduces the risk that either the accountant or management may misinterpret the needs or expectations of the other party. For example, it reduces the risk that management may inappropriately rely on the accountant to protect the entity against certain risks or to perform certain functions that are management's responsibility. The accountant should ensure that the understanding includes the objectives of the engagement, management's responsibilities, the accountant's responsibilities, and the limitations of the engagement. In some cases, the accountant may establish such understanding with those charged with governance.

1 See paragraph .28 of QC section 10B, A Firm's System of Quality Control.

.04 An understanding with management and, if applicable, those charged with governance regarding a review of financial statements should include the following matters:

· The objective of a review is to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework.

· Management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework

· Management is responsible for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

· Management is responsible to prevent and detect fraud.· Management is responsible for identifying and ensuring that the entity complies with the laws and regulations applicable to its activities.· Management is responsible for making all financial records and related information available to the accountant.· Management will provide the accountant, at the conclusion of the engagement, with a letter that confirms certain representations made during the review.

· The accountant is responsible for conducting the engagement in accordance with SSARSs issued by the AICPA.

· A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management.

· A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. A review does not contemplate obtaining an understanding of the entity's internal control; assessing fraud risk; testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents (for example, cancelled checks or bank images); or other procedures ordinarily performed in an audit. Accordingly, the accountant will not express an opinion regarding the financial statements as a whole.

· The engagement cannot be relied upon to disclose errors, fraud,2 or illegal acts3

· The accountant will inform the appropriate level of management of any material errors and of any evidence or information that comes to the accountant's attention during the performance of review procedures that fraud or an illegal act may have occurred.4 The accountant need not report any matters regarding illegal acts that may have occurred that are clearly inconsequential and may reach agreement in advance with the entity on the nature of any such matters to be communicated.

These matters should be communicated in the form of an engagement letter. An example of an engagement letter for a review of financial statements is presented in Review Exhibit A, “Illustrative Engagement Letter.”

2 For purposes of this section, fraud is an intentional act that results in a misstatement in reviewed financial statements.

3 For purposes of this section, illegal acts are violations of laws or government regulations, excluding fraud.

4 Whether an act is, in fact, fraudulent or illegal is a determination that is normally beyond the accountant's professional competence. An accountant, in reporting on financial statements, presents himself or herself as one who is proficient in accounting and review services. The accountant's training, experience, and understanding of the client and its industry may provide a basis for recognition that some client acts coming to his or her attention may be fraudulent or illegal. However, the determination as to whether a particular act is fraudulent or illegal would generally be based on the advice of an informed expert qualified to practice law or may have to await final determination by a court of law.

Appendix-Form A

Form A

.05 An understanding with management or, if applicable, those charged with governance also may include other matters, such as the following:

· Fees and billings

· Any limitation of or other arrangements regarding the liability of the accountant or the client, such as indemnification to the accountant for liability arising from knowing misrepresentations to the accountant by management (regulators may restrict or prohibit such liability limitation arrangements)

· Conditions under which access to review documentation may be granted to others· Additional services to be provided relating to regulatory requirements

.06 The engagement letter also should address the following additional matters if applicable:

· Material departures from the applicable financial reporting framework may exist, and the effects of those departures, if any, on the financial statements may not be disclosed.

· Reference to supplementary information.

Form B

Client Information Form and Inquiries

Church: Fiscal Year End:

Understanding of the Client’s Business

Church Organization and Personnel

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

3. Attach List of Governing Board with contact information for each entity.

Church Operating Characteristics

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

1. List all related entities and activities, e.g., subsidiaries, daycare centers, schools, other 501(C)3: (Provide documentation)

2. List the principal members of management(e.g. pastor, principal, treasurer, etc):

1. List each location maintained by the entities and the nature of the activity carried on at each, e.g., office, executive offices, etc.:

2. Indicate the entity’s primary sources of revenue and approximate percentage of total revenue generated by each:

3. List any other sources of revenue besides voluntary contribution: e.g. rental income etc.

4. Describe transaction with related parties e.g., daycare centers, community development centers, members:

5. Describe the entities vacation and sick pay policy. If applicable, attach a copy of the policy:

6. Describe and review any board approved financial policies. If applicable, attach a copy of the policy:

Form C

1. System Used: Manual system – conferenceManual system – otherComputer – LUCIS/JEWELComputer – other (describe)

Description of Accounting Record

Man

ual

N/A

General LedgerSubsidary Ledgers:

Property and equipmentLoans payablePhysical inventory summarization

Journals:Cash receipts/ Contribution summaryCash disbursementsPurchase/voucherPayrollGeneral journal entries

Financial Reporting:Monthly financial statementsManagement reports

Other:Bank Reconciliations

* I = Integrated / S = Separated Software Program

2. Describe any unusual features of the accounting system or unusual or complex situations that may have an effect on the financial records?

3. Briefly describe the church’s completeness procedures and methods to ensure that accounting transactions are entered into the accounting system. (e.g., all tithe envelope totals reflected in ledger and that all disbursements are recorded, e.g. Receipting tithe envelopes, looseofferings:)

4. Are there significant transactions occurring or recognized near the end of the reporting period? (e.g.Insurance proceeds, pledges)

5. Are there events subsequent to the date of the financial records that would have material effect on the financial statements?

Person at Client/Firm Who is Responsible

Com

pute

r *

Accounts receivable

Form C

6. Do you have knowledge of any fraud or suspected fraud affecting the entity involving management, or others where the fraud could material effect on the financial records, for example, communications received from employees, former employees, or others?

7. Are there any communications from regulatory agencies, eg. INS, IRS, State and Federal?

Potential Additional Steps:

8. Have the financial records been prepared in conformity with the applicable financial reporting framework?

9. What is the entity’s accounting principles and practices and the methods followed in applying them and the entity’s procedurerecording, classifying and summarizing transactions and accumulating information for disclosure in the financial records?

10. What were the reasons for significant journal entries and other adjustments?

Prepared and reviewed by:

In-charge Auditor/Reviewer

Client InformationForm D

Client Information Form and Inquiries

CHECKLIST AChurch Name

Fiscal Year Ended

The Control Environment(To be completed by auditor from client responses)

YES NO 1. Is the treasurer involved in the design or change of the accounting system procedures?2. Is the treasurer involved in the budgeting and comparing performance with budgets?3. Do accounting personnel take vacations when duties are rotated to other qualified persons?4.

5. Has management established procedures for authorizing transactions and approving changes to procedures?6. Are reports available for regularly scheduled board meetings?7. Is a record of board minutes available with notations as to follow-up of actions?8. Is a voucher system in place for pre-approval of all expenditures?9. What method of disbursements has the board authorized?

ATM, Credit, or Debit cardAutomatic paymentsCashChecksOnline/Bank transfersWires

10 Does the treasurer respect limitations on designated funds?11 Does someone other than the treasurer verify the bank reconciliation?12 Is a signature other than the treasurer’s required to authorize unusual disbursements? If yes, give name and position.

13 Does a third party observe the counting of loose offering? If yes, give name and/or position.

14

15. a. Are there any litigation or claims against your church that you are aware of? If so, please explain.

b. Is the conference aware of this litigation or claims?

16 Does the church operate the following?Fruit ProgramDaycare Book/Health Food SalesRental PropertyChurch School

17. a. Does the church rent or allow an outside entity to use the church’s facilities?

b.c. Has the rental agreement been approved by the Conference?

Has the church board established measures to prevent unauthorized access to, or destruction of, documents, records, computer programs, and assets?

List any long or short-term liabilities of the church. (e.g. leases, credit cards, etc.) Do not include loans. Use loan information form to report on outstanding loans. – See Form H-1

If yes, what written agreements are in-place? (Attach copy)

Is there insurance coverage in accordance with conference policy? (Including additional insured requirements)

Client InformationForm D

YES NO18 Is the church or any member of the church operating a business/fund raiser or any other program (pathfinders, community

service, home & school, etc.) that has a bank account that does not have the church treasurer as custodian? If yes, provide:

Name of account

Purpose of program

Who has authorization to sign checks?

19If yes, does the church use the Conference payroll service?

20 Does the church help students through a student-aid program (worthy student)?

21 Does the church have a benevolent/community service/poor fund policy? If applicable, attach a copy of the policy.

22

23 Are church board minutes and business meeting minutes available for review now? Notes/Obeservations:

24. a. Does the church have a Building Project?

b. Was the building project approved by conference?

25. a. Does the church have any loans? -- Name of Bank(s): _____________________________________b. Is the conference aware of the loan?c. Are there any loans provided to the church by members?

26. Are there any restricted or non-conference trust funds?

27. Fixed/Equipment assets

28. Accrued expenses and/or receivables

29. Double entry accounting system

30. More than one checking account

31.

32.

33. If yes to any investments, was Investment Policy approved by conference

34.35. Separate fund(s) controlled by the board36. Unusual items(boat, airplane, etc)37.

Auditor Observations:

Does the church pay individuals for services (such as janitor, organist, etc.)? (See Form G)

If yes, is there a written student-aid policy? (Attach copy)

Does the church own one or more vehicles? (Attach copy of Insurance Schedule) If yes, list description of each:

Debit/Credit Card(s) Whose possession? ___________________________________ (See Form H-3)

List all Checking/Savings/Investments Accounts (See Form H-1 & H-2)

Conference subsidies: Amount $ _________________________

Property Insurance by Adventist Risk Management (If not, obtain a copy of current policy)

Form E

Client Information Form and InquiriesCHECKLIST B

Church Name

Fiscal Year Ended

Control Procedures(To be completed by auditor from client responses)

YES NO 1 Is the offering counted as received?

If no, when is the offering counted? a. Who counts the weekly offerings?

2 Do deposits match the weekly receipts?a. Are the deposits made on a timely basisb. Are the deposits recorded when received?c. Who deposits the weekly offering?

3 Are offerings maintained in a secure environment between receiving and banking?

4 Are funds received through the mail maintained in a secure environment between receiving and banking? In whose care?

5 Does the church receive contribution by internet?

6 How often are donors given receipts?

7 Is the bank account(s) reconciled on a monthly basis and appropriate reconciling entries made?

8 Are prior year audit adjustments made?

9 Is there one or more petty cash fund(s)? If yes, how much? $0.00Are signed receipts kept on file for cash used?

Name Position

Name Position

10 Are all disbursements made by check?If no, are signed receipts on file?

11 Are checks ever written by someone other than the treasurer?If yes, by whom?For what purpose?How and when are they reported to the treasurer?

12 Does the treasurer attend all board meetings? If no, is there any treasury personnel present to give the report?

13 Has the board established maximum dollar amounts for purchases that the treasurer can authorize? If so, what is the limit?

What body is authorized to approve purchases/expenditures over the amount (such finance committee, church board, or church business meeting)?

14 Are copies of receipts available for at least six years?

15 Are tithe envelopes kept until audit is completed?

16 Do archives for permanent records include: All Board MinutesFinancial records (including audited statements)Books of receipts and disbursements of computer generated books of original entryCurrent (and expired for three years) contractsCurrent and past employment agreements

17 Are related parties involved in authorizing and disbursing funds and/or recording and reconciling? If yes, who and what istheir relationship?(e.g. husband & wife)

18 How do you dispose of tithe envelopes once the audit is done?a. shred b. burn c. other ____________

Form F

PROPERTY INFORMATION WORKSHEET

Describe Project:

Date Project Commenced:

Date Completed:

Cost:Local Funds Used

Financing/Loans Other

Total

Describe Property & Location:

Date of donation:

$0.00

***A copy of this working paper – should go to the conference plant fund accountant or assistant treasurer.***

(ATTACH A COPY OF THE INVOICES FOR THE PROJECT)

A. Construction/Purchase/Major Renovation

B. Donated Property

Was Environmental Assessment Done?(Attach Copy)

Appraisal Value of Property(Attache Copy):

Form G

Prepared By: _____________________________________________

LOCAL PAID EMPLOYEE LIST

NAME POSITION TAX FORM ISSUED FREQUENCY OF PAYMENT1099/W2

Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly Yes No Weekly Bi-Weekly Monthly

Form H-1

Loan Information Form

Lending Institution InformationLender: Address:

Phone:

Contact Person:

Type of Loan:Acct. #:Fed ID#:Original amount Borrowed: Date:Current Balance for Yr. ending December 31, 2XXX:Monthly Payment:Number of payments Due:

Lending Institution InformationAddress:

Phone:

Contact Person:


Lending Institution InformationAddress:

Phone:

Contact Person:


Form H-2

Bank Information Form

Financial Institution InformationBank Name:Address:

Phone:

Contact Person:

Type of Bank Account: Acct. #:Fed ID#:Current Balance for year-ending December 31, 2XXX:Interest Rate:Debit Card Linked: Yes No


Phone:

Contact Person:



Phone:

Contact Person:


Form H-3

Credit Card Information Form

Credit Card InformationCompany Name:Address:

Phone:

Contact Person:

Total Number of Credit Cards:

Type of Credit Card: VA MC AX DCAcct. #:Fed ID#:Balance for year-ending December 31, 2XXX:Interest Rate:Minimal Payment:


Phone:

Contact Person:




Phone:

Contact Person:



Form I

Materiality Worksheet

Name of Church/School:Fiscal Year End Date:

Date Prepared:Auditor's Initials:

Planning Percentage - Material MisstatementTotal Assets at year end

Current Year = A $ - Prior Year $ -

Second Prior $ - Total $ -

A1 = Total divided by 3 $ -

Total Local Funds ReceivedCurrent Year = B $ -

Prior Year $ - Second Prior $ -

Total $ - B1 = Total divided by 3 $ -

C = Larger of A1 or B1 $ - If A1 = $100,000 or less x 4% $ - $ 100,000 - $ 1,999,999 x 2%

$ 2,000,000 - $ 2,999,999 x 1.5% $ 3,000,000 - $ 4,999,999 x 1% $ 5,000,000 - $ 9,999,999 x .7%

$ 10,000,000 - up x .5%

$ -

Examine overall impact and apply auditor's judgement

B = Applicable % x A1 (Suggested MateralityAmount)

Form J

Conference Auditing DepartmentBank Reconciliation WorksheetBalance as of August 31, 2014

Bank Information Church InformationBank Name: Entity Name: Address:(Where the accoutn was opended) Treasurer:City, State: Address: Account #: City, State: Account Type: Review Period: FEIN#:

Balance per bank $ - Add:Deposit(s) in transit:

$ - Less: Outstanding checks:

see attached $0.00 $ -

Adjusted ending bank balance $ -

Balance per ledger $ - Items Not Posted:

$ - $ - $ - $ -

Adjusted ending ledger balance $ -

Auditor's notes:If there are no auditor notes, there is no need to print this section

Form J-1

Check # Amount Check # Amount Check # Amount Check # Amount Check # Amount Check # Amount Check # Amount

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total Outstanding Checks: $0.00

Form K

Columbia Union Conference of SDA Auditing Department

Auditor's Adjustments

Church Name & Address Review Period:Entity ID: Auditor's Initials:<Entity Name><Address><City, State>

Department Reason Year-end Bal. Audit Adjust. Ending Bal. $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ -

Checking & Savings Book Balances (per reconciliation): $ - $ - $ -

0.00 $ -

Form L

COLUMBIA UNION CONFERENCE OF SDAAuditing Department

Test of Disbursements-Cash Disbursements

Church Name & Address Date of Review Review PeriodEntity ID:<Entity Name><Address> Auditor's Initials:<City, State>

Attributes:1. Origional void check is available for inspection. 5. The account designation is appropriate.2. Cancelled check is signed by one authorized to sign on the bank account. 6. Support documentation behind each check.3. Check cleared the bank within 30 - 60 days.4. Disbursments were authorized by appropriate person/board.

***Scan all chesk issued to locate checks with significant & unusual amounts that stand out and test them as well.***First Check Number Issued Method of SamplingLast Check Number Issued ManualTotal Number of Checks Issued 1 ComputerizedSample for this Location 20%

Sample Amount 0.2Sample Size

0 - 100 20%101 - 200 15%201 - 500 10%501 & Up 5%Check # Payee Date Amount 1 2 3 4 5 6 7 8 Comments

Checks per year

Form L

Form L

Columbia Conference of SDA Auditing Department

Income Review Worksheet

Form M

INCOME TEST

Church/School Name: Year Under Review: 20xxCity, State: Auditor's Initial:Entity ID:

Jan-14 Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal Comments4-Jan Y

11-Jan Y21-Jan Y27-Jan Y 10

YMonthly Total $ - $ - $ - $ - Y

Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsFebruary 3 YFebruary 10 YFebruary 17 YFebruary 24 YFebruary Y

Monthly Total $ - $ - $ - $ - Y

Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsMarch 3 YMarch 10 YMarch 17 YMarch 24 YMarch 31 Y


Apr-14 Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal Comments5-Apr Y

12-Apr Y19-Apr Y26-Apr Y

YMonthly Total $ - $ - $ - $ - Y

Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsMay 5 YMay 12 YMay 19 YMay 26 YMay Y


Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsJune 5 YJune 12 YJune 19 YJune 26 YJune Y



Income Review Worksheet

Form M

Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsJuly 7 YJuly 14 YJuly 21 YJuly 28 YJuly Y


Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsAugust 4 YAugust 11 YAugust 18 YAugust 25 YAugust Y


Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsSeptember 4 YSeptember 11 YSeptember 18 YSeptember 25 YSeptember Y


Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsOctober 5 YOctober 12 YOctober 19 YOctober 26 YOctober Y


Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsNovember 7 YNovember 14 YNovember 21 YNovember 28 YNovember Y


Date Tithe Envelopes Weekly Reports Ledger Bank Deposits Does It Equal CommentsDecember 1 YDecember 8 YDecember 15 YDecember 22 YDecember 29 Y


Date-2013


Conference Remittance Worksheet

Form N

Period of Review: 2014Church Name & AddressChurch/School Name: City, Sate:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD TotalTithe 0.00 World Budget Offering 0.00 Sabbath School Missions 0.00 ADRA (DR) 0.00 Annual Sacrifice 0.00 Conference Women's Ministry 0.00 Conference Evangelism 0.00 Religious Liberty 0.00 Camp Mohaven 0.00 Vision Ohio 0.00

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Amt pd to ABC Conf. Corp. 0.00 Difference 0.00 0.00 0.00 1,802.14 1,510.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Check #:Date Paid:Cleared BankDo amounts equal? Y Y Y Y Y Y Y Y Y Y Y Y Y

Auditor's Initials:

Date Completed:



Form N

***Please Note That The Form Title Is Listed In the HEADER SECTION Of This Form***



Form N

Period of Review: 2013Church Name & AddressChurch/School Name: City, Sate:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD TotalTithe 0.00

Sabbath School Missions 0.00 Annual Sacrifice 0.00 Ingathering - Donated 0.00 World Budget Offering 0.00 ADRA (DR) 0.00 Voice of Prophecy 0.00 Conference Women's Ministry 0.00 Adventist World Radio 0.00 Adventist TV Ministry 0.00 Camp Mohaven 0.00 Conference Evangelism 0.00

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Difference 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Check #:Date Paid:Cleared BankDo amounts equal? Y Y Y Y Y Y Y Y Y Y Y Y Y

Auditor's Initials:

Date Completed:

Amt pd to ABC Conf. Corp.



Form N

***Please Note That The Form Title Is Listed In the HEADER SECTION Of This Form***

Form O


Disbursement Worksheet

PASTOR:

Church Name & Address Date of Review Review Period<Church/School Name> <Date> <Date of Period Reviewed><City, State>

DATE CHECK# REASON

Total: $ -

CHECK AMOUNT

SUPPORTING DOCUMENT

Y / N

Auditor Notes:(Scan for family members as well)

Form P


Disbursement Worksheet

TREASURER:

Church Name & Address Date of Review Review Period<Church/School Name> <Date> <Date of Period Reviewed><City, State>

DATE CHECK# REASON

Total: $ -

CHECK AMOUNT

SUPPORTING DOCUMENT

Y / N

Auditor Notes:(Scan for family members as well)

Form Q-1

Columbia Union Conference of SDAAuditing Department

Summarized Disclosure Checklist

In-Charge Auditor

Church Name: Balance Sheet Date: Completed By: Date Completed:

BALANCE SHEET

Disclosure Made? 1. Cash - Yes No N/A

a. Is restricted cash identified and reclassified as noncurrent, if applicable, and are the restrictions disclosed?

b. Are significant concentrations of credit risk arising from cash deposits in excess of federally insured limits disclosed?

2. Notes and accounts receivablea. Are significant categories of receivables, including officer and employee receivables,

shown separately from normal trade receivables?

b. Are amounts due from affiliates or subsidiaries properly classified as current or

noncurrent? (e.g., schools, daycare centers.)c. Is the allowance for doubtful accounts disclosed?

d. Are accounting policies for loans disclosed?e. Is the carrying amount of loans and trade receivables that serve as collateral disclosed?

3. Marketable debt and equity securities – Are they properly valued, classified, and disclosed in accordance with North American Division Working Policy?

4. Property and equipment –a. Are balances of major classes of depreciable assets disclosed?b. Is accumulated depreciation disclosed?c. Do disclosures include a general description of the methods used to compute depreciation

on the major classes of depreciable assets?d. Is depreciation expense for the period disclosed?

5. Current liabilities – a. If a classified balance sheet is used, is a total of current liabilities presented?

6. Notes payable, long-term debt, and other obligations – a. Are the terms, interest rates, restrictive covenants and collateral disclosed?b. Are fair values of debt instruments disclosed?

Form Q-2

Columbia Union Conference of SDAAuditing DepartmentStatement of Income

Summarized Disclosure Checklist

Disclosure Made? Yes No N/A

1. Are major types of revenue and expense accounts shown indiviudally on face of income statement?

2. Are extraordinary unusual and infrequent material items properly presented and disclosed?(e.g. Tornadoes in DC)

3. Related party transactions and common control--a.

4. Other disclosures - Are the following appropriately disclosed: a. Accounting changes and correction of an error?b. Business contributions? c. Commitments?d. Extinguishment of debt?e. Illegal acts?f. Insurance contracts and proceeds?g. Long-term contracts?h. Non-monetary transactions? i. Real estate activities?j. Subsequent events?k. Taxes leases? l. Are expenses reported on functional basis?

Do disclosures of material related party transactions include a description of the transactions, includein the nature of the relationship(s), dollar amounts of the transactions, and amounts due from or to related entities and the terms and manner of settlement?

Form Q-3


Note Disclosures

1. Organization Description

2. Statement of Changes in Net Assets(Income & Expense Statement)a. Extraordinary Itemb. Disclose nature of event and the principal items entering into the determination of an extraordinary gain or loss

3. Disclose all significant accounting policies in the first note. Should at least include the following items: a. Basis of accounting and funds accounting practices. b. Description of major products or services sold or provided and the principal markets servedc. Sources of revenued. Accounting for plant assets: capitalization and depreciation policies on conference/association financial statemente. Definition of Cash and Cash Equivalentsf. Accounting for Investment Income, if anyg. List of affiliated or related parties and description of the relationships. Eg. Daycare center, elementary school, etc. h. Disclose the income tax status, such as IRC section under which an organization is exempt from federal income or excise taxes.

4.

5.

6. Make sure the terms of loans receivable/payable have been disclosed. a.b. If a loan is with Revolving Fund(RF), have the rates been updated for changes in RF rates?

7. Property and Equipment - Disclose that it is reflected on conference financial statements or cash basis useda. Balances of major classes of depreciable assetsb. Carrying amount of property not held for use in operations. (Construction in prgoress or held for sale or investment)c. Additions and Deletions during the period - any sale must be disclosedd. Leased property or equipment requires numerous disclosures

8. Identify significant categories of debt in the statements like notes to banks, mortgage notes, or related-party notes.

9. Disclosures about any obligation under guarantees 10.

11.Disclosure about participation in a defined contribution pension or defined benefit pension plan. Include cost and required amount of contributions to plans.

12.

13.

14. Foot and cross foot all notes

15.

16.

17. Remittancea.

18.

Eg. Riverdale church is a member of _____________ Conference. The organization's primary purpose is to spread the gospel of Jesus Christ throughout its territory. The church receives most of its revenue in the form of contributions from it's membership.

Are restrictions and reasons for restrictions on cash and other assets dislcosed? Restrictions could be donor imposed or agreements limiting the use of cash or other assets.

Are siginificant concentrations of credit risk arising from cash deposits in excess of federally insured limits disclosed? (Cash in excess of FDIC converage is not automatically a significant concentration, but the auditor should determine whether it is significant in relation to the Financial Statement.)

Interest rate, monthly payment amounts, due dates, etc. - Refer to loan information form. - See Form E

Provide information about the nature and amounts of the restrictions(both temprary and permanent) either in the notes or on the face o fteh statement of financial position.

If the organization has negative net assests or very little net assest or successive negative operations, a footnote should explain why the "going concern" assumption is still valid.

Consider any other out of the ordinary conditions or circumstances that may need to be disclosed in the financial statements. You may need to consult with higher organizations or auditors about appropriate disclosures.

Disclose the amount of fundraising expense(separate from any other functional expense) for each year or disclose that there was none. (If there are "joint" costs, disclose the client's methodology for distributing them between fund-raising and other functional exepenses.)

Are significant concentrations of risk regarding revenue(major reliance on a major consumer) or expense(major reliance on major vendor) been adequately disclose? Common situations:

- Academies receiving funds from the Commonweal Foundation: Some academies have major concentration of their students receiving Commonweal grants, if this concentration is greater thatn 10% of the student body, consider disclosing footnotes?

Disclose a schedule of conference funds received and remitted - See Form F

Disclose if conference processes payroll for church employees and what conference employess participate in local church operations(e.g. pastor)- See Form G

Form R-1

HYPOTHETICAL SEVENTH-DAY ADVENTIST CHURCH STATEMENT OF REMITTANCE

Year Ended December 31, 20xx

Conference Fund ReconciliationTithe $ - Sabbath School:

12 Sabbaths $ - 13th SabbathBirthday/Thank OfferingInvestment $ -

Hope for Humanity(Ingathering)SDA DonatedNon-SDA Solicited $ -

Worlds Budget $ 305.00 ADRA $ 263.00 Week of Sacrifice $ - Conf Women's Minstry $ 10.00 Conf Evangelism $ 55.00 Religious Liberty $ 18.00 Camp Mohaven $ 11.00 Vision Ohio $ 20.00

Total Conference Funds Collected $ 682.00

Month Date Remitted Amount Month Date Remitted AmountJanuary 12/30/1899 $ - July 12/30/1899 $ -

February 12/30/1899 $ - August 12/30/1899 $ - March 12/30/1899 $ - September 12/30/1899 $ -

April 12/30/1899 $ - October 12/30/1899 $ - May 12/30/1899 $ - November 12/30/1899 $ - June 12/30/1899 $ - December 12/30/1899 $ -

Total Conference Funds Remitted $ -

Form R-1

Tithe 0.00 World Budget Offering 0.00 Sabbath School Mission 0.00 ADRA (DR) 0.00 Annual Sacrifice 0.00 Conference Women's Min 0.00 Conference Evangelism 0.00 Religious Liberty 0.00 MVA Worthy Student #REF!Camp Mohaven 0.00 Vision Ohio 0.00

Form R-2

XYZ SDA Church Prepared by YOUR INTITIALSRemittance Analysis Date MM/DD/YYYYMM/DD/YYYY

Month 2014 2013 Difference %January - 57,394.86 (57,394.86) -100.00% #

February - 67,528.58 (67,528.58) -100.00% #; ^^March - 85,463.86 (85,463.86) -100.00% ^Âpril - 75,599.07 (75,599.07) -100.00% #May - 75,479.91 (75,479.91) -100.00% #June - 70,173.42 (70,173.42) -100.00% *July - 76,137.37 (76,137.37) -100.00% *

August - 80,199.91 (80,199.91) -100.00% *September - 65,333.37 (65,333.37) -100.00% *

October - 78,948.15 (78,948.15) -100.00% *November - 77,144.11 (77,144.11) -100.00% *December - 121,577.01 (121,577.01) -100.00% #

- 930,979.62 (930,979.62) -100.00%

Procedure: Obtained the amounts below from the Church's QuickBooks ledger dated 04/14/15. Based on the nature of the Church membership and giving pattern, a change within 1% or $10,390 is within reasonable and no further detail testing deemed necessary. Amounts greater than $10,390 is selected for detail testing.

# Selected for detail testing based on the criteria above. See Form R-3, for more details.

^^ Specifically selected due to the Treasurer's delay in sending the remittance to the Conference.

* Amount is consistent with the previous year. Change within the Auditor's expectation. No further detail testing deemed necessary.

Analytical ProceduresForm S-1


Analytical Procedures Documentation Form


Sample: Combined Budget-No signifcant change in membership, funds be equal or close to the previous year's totals.

General Overall Expectations for Organization -

Name of account of Ratio:

Accounts of Ratio Expectation

Calculation and Comaprison to GL

Additional Procedures or Conclusion








Instructions: This optional documentation form is designed to assist accountatns in meeting the analytical procedures documentation requirements of SSARS No. 19. Paragraph 3.16-3.18 listed common ratios that may be useful when performing anayltical procedures. Accountants should refer to the discussion beginning in section 403 prior to completing this form.

Financial Statement Drivers - What items are important to this financial statement? E.g. Tithe Income, Local Income, Loans, Evangelism, or property purchase/sale/renovations, cash available for opreation.




















Form S-2

XYZ SDA Church Prepared by YOUR INTITIALSOther Revenue/Expenses Analysis Date MM/DD/YYYYMM/DD/YYYY

Acct# Acct Name 2014 2013 $ Change % Change CommentTithe 10,862.69 14,124.73 (3,262.04) -23.09% #WB 155.00 127.00 28.00 22.05% **Sabbath School Missions 280.39 641.06 (360.67) -56.26% #Adv World Radio 138.00 11.00 127.00 1154.55% &Conf WM 55.00 2.00 53.00 2650.00% #Religious Liberty 18.00 - 18.00 #DIV/0! #Camp Mohaven - 12.00 (12.00) -100.00% ^ÂDRA 10.00 263.00 (253.00) -96.20% #Conf Evangelism - 51.00 (51.00) -100.00% #Combined Budget 4,639.31 4,382.80 256.51 5.85% #Local SS 485.90 643.30 (157.40) -24.47% (())Youth Ministries 12.82 - 12.82 #DIV/0! >>Family Ministries - - - #DIV/0! #Church Expense - 74.50 (74.50) -100.00% #Local Mission 700.00 1,134.99 (434.99) -38.33% #Community Service - - - #DIV/0! #Bank Adj 28.00 - 28.00 #DIV/0! #

XXNet 17,385.11 21,467.38 (4,082.27)

Procedure: Scanned the P&L statement for 12/31/14 and 2013 and selected items that are greater or equal to $10,390 (based on 1% of tithe) for further testing. No unusal items noted for the accoun balances below the threshhold. Auditor exclude tithe since it has been tested already in the tithe testing section. Income accounts are in bracket.

# Scanned the activity detail, no unusual item noted. Amount is fairly consistent with the prior year. Change below the auidtor's expectation of $10,390. Pass on further work.

** Scanned the activity detail, no unusual item noted. Vouched indidual amounts greater or equal to $2,000 to tithe envelopes or online giving, without exception. Amount is fairly consistent with the prior year. Change below the auidtor's expectation of $10,390. Pass on further work.

& Scanned the activity no unusual item noted. Due to the nature of the account, it is expected that the amount would fluctuate from year to year. The increase appears reasonable. Pass on further work.

Form S-2

^^ The Church participated in the Conference campmeeting in 2014. There was no campmeeting in the prior year. Scanned the activity detail. No unusual item noted. Amount appears reasonable, passon further work.

(()) Amount represents payments to Columbia Union Revolving (CURF) Fund for mortgage loan. The Church pays $13,623 per month. Agreed payment to CURF statements, without exception. Pass on further work.

Form S-2

XYZ SDA Church Prepared by YOUR INTITIALSOther Revenue/Expenses Analysis Date MM/DD/YYYYMM/DD/YYYY

Acct# Acct Name 2014 2013 $ Change % Change CommentTithe 10,862.69 14,124.73 (3,262.04) -23.09% #WB 155.00 127.00 28.00 22.05% **Sabbath School Missions 280.39 641.06 (360.67) -56.26% #Adv World Radio 138.00 11.00 127.00 1154.55% &Conf WM 55.00 2.00 53.00 2650.00% #Religious Liberty 18.00 - 18.00 #DIV/0! #Camp Mohaven - 12.00 (12.00) -100.00% ^ÂDRA 10.00 263.00 (253.00) -96.20% #Conf Evangelism - 51.00 (51.00) -100.00% #Combined Budget (1,770.42) 163.57 (1,933.99) -1182.36% #Local SS 181.79 576.88 (395.09) -68.49% (())Youth Ministries 226.40 50.00 176.40 352.80% >>Family Ministries - - - #DIV/0! #Church Expense 3,130.32 3,092.42 37.90 1.23% #Local Mission 507.33 3,469.90 (2,962.57) -85.38% #Community Service 105.28 - 105.28 #DIV/0! #Bank Adj - - - #DIV/0! #

XXNet 13,899.78 22,584.56 (8,684.78)

Procedure: Scanned the P&L statement for 12/31/14 and 2013 and selected items that are greater or equal to $10,390 (based on 1% of tithe) for further testing. No unusal items noted for the accoun balances below the threshhold. Auditor exclude tithe since it has been tested already in the tithe testing section. Income accounts are in bracket.

# Scanned the activity detail, no unusual item noted. Amount is fairly consistent with the prior year. Change below the auidtor's expectation of $10,390. Pass on further work.

** Scanned the activity detail, no unusual item noted. Vouched indidual amounts greater or equal to $2,000 to tithe envelopes or online giving, without exception. Amount is fairly consistent with the prior year. Change below the auidtor's expectation of $10,390. Pass on further work.

& Scanned the activity no unusual item noted. Due to the nature of the account, it is expected that the amount would fluctuate from year to year. The increase appears reasonable. Pass on further work.

Form S-2

^^ The Church participated in the Conference campmeeting in 2014. There was no campmeeting in the prior year. Scanned the activity detail. No unusual item noted. Amount appears reasonable, passon further work.

(()) Amount represents payments to Columbia Union Revolving (CURF) Fund for mortgage loan. The Church pays $13,623 per month. Agreed payment to CURF statements, without exception. Pass on further work.

Form S-3

XYZ SDA Church Prepared by YOUR INTITIALSRemittance Test Date MM/DD/YYYYMM/DD/YYYY

Month 2014 2013 Difference %January 123,381.33 57,394.86 65,986.47 114.97% #

February 61,617.30 67,528.58 (5,911.28) -8.75% ^^March 80,446.56 85,463.86 (5,017.30) -5.87% ^Âpril 62,072.98 75,599.07 (13,526.09) -17.89% #May 106,358.29 75,479.91 30,878.38 40.91% #June 68,280.12 70,173.42 (1,893.30) -2.70% *July 73,213.91 76,137.37 (2,923.46) -3.84% * &

August 88,732.32 80,199.91 8,532.41 10.64% *September 73,189.12 65,333.37 7,855.75 12.02% *

October 77,734.38 78,948.15 (1,213.77) -1.54% *

November 79,604.41 77,144.11 2,460.30 3.19% *December 144,382.31 121,577.01 22,805.30 18.76% #

1,039,013.03 930,979.62 108,033.41 11.60%

# Selected for detail testing based on the criteria above. See testing tab for more details.

Procedure: Obtained the amounts below from the Church's QuickBooks ledger dated 12/31/14 and 2013. Based on the nature of the Church membership and giving pattern, a change within 1% or $10,390 is within reasonable and no further detail testing deemed necessary. Amounts greater than $10,390 is selected for detail testing.

^^ Specifically selected due to the Treasurer's delay in sending the remittance to the Conference.

* Amount is consistent with the previous year. Change within the Auditor's expectation. No further detail testing deemed necessary.

Form T

COLUMBIA UNION CONFERENCE OF SDAAUDITING DEPARTMENT

FINANCIAL REVIEW WORKSHEET

NOTES & RECOMMENDATIONS

Church Name & Address Date of Review Review PeriodEntity ID:Church/School Name:Street Address: City, State:

Reviewers Notes & Recommendations

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Form U

October 24, 2012

<Treasurer’s Name><Entity Name><Address><City, State, Zip>

Dear Mr./Mrs. Treasurer,

RE: Financial Review of <Entity Name>Federal Tax I.D.#

XYZ Conference of SDAAuditing Department

<Your name><Title>

Cc <Pastor> <Church Board>

We were engaged to review the accompanying Statement of Assets and Liabilities arising from cash transactions of (Church’s Name) Church as of December 31, 20xx, and the related Statements of Revenue Collected and Expenses Paid for the year then ended. These financial records are the responsibility of the church's administrators. Our responsibility is to express an opinion on these financial statements based on our financial review.

There is not sufficient competent evidential matter available to afford a reasonable basis for an opinion regarding the Statement of Assets and Liabilities arising from cash transactions of the (Church’s Name) Church. (Describe the situation: Ex. The ledger is not current and maintained with funds being properly classified.) Therefore, we do not express an opinion on the fund balance.

Appendix Form U-1

Reporting on the Financial Statements

statements is to prevent misinterpretation of the degree of responsibility the accountant is assuming when his or her name is associated with the financial statements.

independent. An appropriate title would be “Independent Accountant's Review Report.”

inquiries of company management (owners); and

the financial statements as a whole, and that, accordingly, the accountant does not express such an opinion.

and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

the AICPA. A statement that those standards require the accountant to perform the procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. A statement that the accountant believes that the results of his or her procedures provide a reasonable basis for his or her report.

be made to the financial statements in order for them to be in conformity with the applicable financial reporting framework, other than those modifications, if any, indicated in the report.

the accountant has accumulated review evidence sufficient to provide a reasonable basis for concluding that the accountant has obtained limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework).

See Review Exhibit D, “Illustrative Review Reports,” for examples of review reports.

such as “See Independent Accountant's Review Report.”

considers necessary to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework, or the client does not provide the accountant with a representation letter, the review will be incomplete. A review that is incomplete does not provide an adequate basis for issuing a review report. In such a situation, the accountant should consider the matters discussed in paragraphs .56—.61 of section 80 in deciding whether it is appropriate to issue a compilation report on the financial statements.

Form H

statements, such as the statements of income, retained earnings, and cash flows. The accountant may do so if the scope of his or her inquiry and analytical procedures has not been restricted.

financial statements prepared in accordance with GAAP.

.27 Financial statements reviewed by an accountant should be accompanied by a written report. The accountant's objective in reporting on the financial

.28 The basic elements of the report are as follows:

a. Title. The accountant's review report should have a title that clearly indicates that it is the accountant's review report and includes the word

b. Addressee. The accountant's report should be addressed as required by the circumstances of the engagement. c. Introductory paragraph. The introductory paragraph in the accountant's report should

i. identify the entity whose financial statements have been reviewed; ii. state that the financial statements have been reviewed; iii. identify the financial statements; that have been reviewed; iv. specify the date or period covered by the financial statements;

v. include a statement that a review includes primarily applying analytical procedures to management's (owners') financial data and making

vi. include a statement that a review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding

d. Management's responsibility for the financial statements. A statement that management (owners) is (are) responsible for the preparation

e. Accountant's responsibility. A statement that the accountant's responsibility is to conduct the review in accordance with SSARSs issued by

f. Results of engagement. A statement that, based on his or her review, the accountant is not aware of any material modifications that should

g. Signature of the accountant. The manual or printed signature of the accounting firm or the accountant as appropriate. h. Date of the accountant's report. The date of the review report (the accountant's review report should not be dated earlier than the date on which

.29 Each page of the financial statements reviewed by the accountant should include a reference,

.30 When the accountant is unable to perform the inquiry and analytical procedures he or she

.31 The accountant may be asked to issue a review report on one financial statement, such as a balance sheet, and not on other related financial

.32 Financial statements prepared in accordance with an OCBOA are not considered appropriate in form unless the financial statements include· a description of the OCBOA, including a summary of significant accounting policies and a description of the primary differences from GAAP. The effects of the differences need not be quantified.· informative disclosures similar to those required by GAAP if the financial statements contain items that are the same as, or similar to, those in

Appendix Form U-1

vi. include a statement that a review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding

The date of the review report (the accountant's review report should not be dated earlier than the date on which

Appendix Form U-2

LOCAL CHURCH AND SCHOOL REVIEWSAMPLE REPORT – UNQUALIFIED – OCBOA (Cash Basis)

INTRODUCTORY

SCOPE

OPINION

RESTRICTION

I have reviewed the accompanying {list the actual titles of the reports presented, for example, statements of assets and liabilities arising from cash} as of December 31, 20xx, and the related statements of cash receipts and disbursements of {complete legal name/s of church or school and subsidiaries if applicable <identifier such as “Church” or “School”>} for the year then ended in accordance with the review standards generally accepted by the Columbia Union Conference of Seventh-day Adventist as applied to local churches and elementary schools. All information included in these statements is the representation of the management of the <identifier>.

A review consists principally of inquiries of church or school personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the statements taken as a whole. Accordingly, I do not express such an opinion.

Based on my review, as the internal reviewer of {name} Conference, I am not aware of any material modifications that should be made to the accompanying statements in order for them to be in conformity with the basis of accounting principles described in Note X.

As described in Note X, these statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting accepted by the Seventh-day Adventist denomination other than accounting principles generally accepted by the Seventh-day Adventist denomination.

This report is intended solely for the information and use of members and officers of the <identifier>, its audit review committee [if applicable] and governing committee, and the officers and their designees of larger denominational organizations. This report is not intended to be and should not be used by anyone other than these specified parties.

NOTE: The names of the statements in this report cannot be the same names of the statements described in the GAAP reports.

Appendix Form U-3

LOCAL CHURCH AND SCHOOL REVIEW

INTRODUCTORY

SCOPE

QUALIFICATION

OPINION

RESTRICTION

SAMPLE REPORT – QUALIFED

I have reviewed the accompanying {list the actual titles of the reports presented, for example, statements of assets and liabilities arising from cash} as of December 31, 20x9, and the related statements of cash receipts and disbursements of {complete legal name/s of church or school and subsidiaries if applicable <identifier such as “Church” or “School”>} for the year then ended in accordance with the review standards generally accepted by the Columbia Union Conference of Seventh-day Adventist as applied to local churches and elementary schools. All information included in these statements is the representation of the management of the <identifier>.

A review consists principally of inquiries of church or school personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the statements taken as a whole. Accordingly, I do not express such an opinion.

The <identifier> has included in their {list the actual title o fhte report at issue} the value of the assets which they use bu to twhich they do not hold legal title, which does not comply with the cash basis of accounting principles generally accepted by the Seventh-day Adventist denomination. As a result, the assets at {date of the affected reported} are over seated by $xxx,xxx.

Based on my review, as the internal reviewer of {name} Conference, except for including the value of assets which they do not own as described in the preceding paragraph, I am not aware of any material modifications that should be made to the accompanying {list the actual titles of the reports presented} in order for them to be in conformity with the denomination for local churches and elementary schools.

This report is intended solely for the information and use of members and officers of the <identifier>, its audit review committee [if applicable] and governing committee, and the officers and their designees of larger denominational organizations. This report is not intended to be and should not be used by anyone other than these specified parties.

(b) Is there any intention to draft a qualified report for OCBOA-basis reports?

(b)

Appendix Form U-3

(b)

Form V

Church/School Representation Letter 1[Client Organization’s Letterhead]

[Date] 2[Conference Auditing Department][Address]

1 We are responsible for the financial statements and for the assertion that they are presented in conformity with the cash basis of accounting.

2. We are responsible for selecting the cash basis of accounting and for determining that it is appropriate for our purposes.

3.

4.

5.We have disclosed to you all events subsequent to the date of financial statements that would have a material effect on the financial statements.

6.

7.

8.

9.We are in agreement with the adjusting journal entries you have recommended, and they have been posted to the entity’s accounts. [if applicable]

10. We have responded fully and truthfully to all inquiries made to us by you during your review.

11. We intend to distribute your report only to [Describe limitations, if any.]4

ure: Signature:

tor: Treasurer:

2 This letter should be dated as of the date of the review report.

4 This sentence should describe any limitations on the use of the reviewer’s report.5 The representation letter should normally be signed by the management of the organization, such as the pastor or school principal and the treasurer or chief financial officer.

In connection with your review of the statement of assets and liabilities arising from cash transactions as of [date of financial statements] and the related statement of cash receipts and disbursements for the year then ended, for the purpose of expressing limited assurance that nothing came to your attention that caused you to believe that the statements are not presented, in all material respects, in conformity with the cash basis of accounting, we confirm, to the best of our knowledge and belief, the following representations made to you during the course of your review.3

This organization is tax-exempt under Section 501 (c) (3) of the Internal Revenue Code. Any activities of which we are aware that would jeopardize the organization’s tax-exempt status, and all activities subject to tax on unrelated business income or excise tax or other tax, have been disclosed to you. All required filings with tax authorities are up-to-date.

We have disclosed to you all information of which we are aware that may contradict the financial statements, and we have disclosed to you all communications from regulatory agencies affecting the financial statements.

We have made available to you all records of the organization relevant to the financial statements, including minutes of business meetings, board meetings, finance committee meetings, audit committee meetings, and summaries of recent meetings for which minutes have not yet been prepared.

We acknowledge our responsibility to comply with the policies of the [Name] Conference of Seventh-day Adventists and confirm that all activities and transactions for the period under review were in compliance with those policies [except as follows (if applicable)].

We acknowledge our responsibility to prevent and detect fraud. We have no knowledge of any fraud or suspected fraud affecting the entity involving management or others where the fraud could have a material effect on the financial statements, including any communications received from employees, former employees, church members or others.

1 A letter such as this one should be obtained for all review engagements from the responsible party, which is normally the client. Refusal by the responsible party in a review engagement to furnish this letter or a written assertion constitutes a scope limitation sufficient to generally require the reviewer to withdraw from the engagement.

3 When questions about significant matters have arisen in the course of applying the review procedures, the reviewer may wish to have management include representations about their responses to the reviewer’s concerns.

Appendix Form V

Management Representations

.22 Written representations are required from management for all financial statements and periods covered by the accountant's review report. For example, if comparative financial statements are reported on, the representations obtained at the completion of the most recent review should address all periods being reported on. If current management was not present during all periods covered by the accountant's report, the accountant should nevertheless obtain written representations from current management for all such periods. The specific written representations obtained by the accountant will depend on the circumstances of the engagement and the nature and basis of presentation of the financial statements. Written representations from management ordinarily confirm representations explicitly or implicitly given to the accountant, indicate and document the continuing appropriateness of such representations, and reduce the possibility of misunderstanding concerning the matters that are the subject of the representations. The accountant should request that management provide a written representation related to the following matters:

a. Management's acknowledgment of its responsibility for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework b. Management's belief that the financial statements are fairly presented in accordance with the applicable financial reporting framework c. Management's acknowledgement of its responsibility for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements d. Management's acknowledgement of its responsibility to prevent and detect fraud

e. Knowledge of any fraud or suspected fraud affecting the entity involving management or others where the fraud could have a material effect on the financial statements, including any communications received from employees, former employees, or others

f. Management's full and truthful response to all inquiries g. Completeness of information h. Information concerning subsequent events

The representation letter ordinarily should be tailored to include additional appropriate representations from management relating to matters specific to the entity's business or industry.6 An illustrative representation letter is presented in Review Exhibit B, “Illustrative Representation Letter.”6 The accountant is not precluded from obtaining representations regarding services performed in addition to the review engagement.

.23 Circumstances exist in which the accountant should consider obtaining an updating representation letter from management (for example, the accountant obtains a management representation letter after completion of inquiry and analytical review procedures, but does not issue the review report for a significant period of time thereafter, or a material subsequent event occurs after the completion of inquiry and analytical review procedures, including obtaining the original management representation letter, but before the issuance of the report on the reviewed financial statements). In addition, if a predecessor accountant is requested to reissue the report on the financial statements of a prior period and those financial statements are to be presented on a comparative basis with reviewed financial statements of a subsequent period, the predecessor accountant should obtain an updating representation letter from the management of the former client.7 The updating management representation letter should state (a) whether any information has come to management's attention that would cause management to believe that any of the previous representations should be modified and (b) whether any events have occurred subsequent to the balance-sheet date of the latest financial statements reported on by the accountant that would require adjustment to or disclosure in those financial statements. An illustrative updating management representation letter is contained in Review Exhibit C, “Illustrative Updating Management Representation Letter.”

.24 Because the accountant is concerned with events occurring through the date of the report that may require adjustment to or disclosure in the financial statements, management's representations set forth in the management representation letter should be made as of the date of the accountant's review report. The accountant need not be in physical receipt of the management representation letter as of the date of the accountant's review report, provided that management has acknowledged that they will sign the representation letter without modification and it is received prior to the release of the report. The management representation letter should be addressed to the accountant. The letter should be signed by those members of management whom the accountant believes are responsible for and knowledgeable about (directly or through others in the organization) the matters covered in the representation letter. Normally, the chief executive officer and chief financial officer or others with equivalent positions in the entity should sign the representation letter.

7 See paragraphs .20—.24 of section 200, Reporting on Comparative Financial Statements.

Appendix Form V

Review Exhibit B—Illustrative Representation Letter

disclosure in the financial statements or as a basis for recording a loss contingency

12. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance.

13. The following have been properly recorded or disclosed in the financial statements:

14. We are in agreement with the adjusting journal entries you have recommended, and they have been posted to the company's accounts (if applicable).

16. We have responded fully and truthfully to all inquiries made to us by you during your review.

________________________________

________________________________

.71 The following representation letter is included for illustrative purposes only. The accountant may decide, based on the circumstances of the review engagement or the industry in which the entity operates, that other matters should be specifically included in the letter or that some of the representations included in the illustrative letter are not necessary.

[Date]1

To [the Accountant]

We are providing this letter in connection with your review of the [identification of financial statements] of [name of entity] as of [dates (for example, December 31, 20X1, and December 31, 20X2)] and for the [periods of review (for example, for the years then ended)] for the purpose of obtaining limited assurance that that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with [ the applicable financial reporting framework (for example, accounting principles generally accepted in the United States of America)]. We confirm that we are responsible for the fair presentation of the financial statements in accordance with [the applicable financial reporting framework] and the selection and application of the accounting policies.

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person using the information would be changed or influenced by the omission or misstatement.2

We confirm, to the best of our knowledge and belief, (as of [the date of the accountant's review report]) the following representations made to you during your review:

1. The financial statements referred to previously are fairly presented in accordance with [the applicable financial reporting framework (for example, accounting principles generally accepted in the United States of America)].

2. We have made the following available to you a. financial records and related data. b. minutes of the meetings of stockholders, directors, and committees of directors, or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. No material transactions exist that have not been properly recorded in the accounting records underlying the financial statements.

4. We acknowledge our responsibility for the preparation and fair presentation of the financial statements in accordance with [ the applicable financial reporting framework (for example, accounting principles generally accepted in the United States of America)].

5. We acknowledge our responsibility for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. 6. We acknowledge our responsibility to prevent and detect fraud.

7. We have no knowledge of any fraud or suspected fraud affecting the entity involving management or others where the fraud could have a material effect on the financial statements, including any communications received from employees, former employees, or others.

8. We have no plans or intentions that may materially affect the carrying amounts or classification of assets and liabilities.

b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion that must be disclosed in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 450, Contingencies.3

c. Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB ASC 450.

11. The company has satisfactory title to all owned assets, and no liens or encumbrances on such assets exist, nor has any asset been pledged as collateral, except as disclosed to you and reported in the financial statements.

a. Related party transactions, including sales, purchases, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties.

b. Guarantees, whether written or oral, under which the company is contingently liable.

c. Significant estimates and material concentrations known to management that are required to be disclosed in accordance with the FASB ASC 275, Risks and Uncertainties. [Significant estimates are estimates at the balance sheet date that could change materially with the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.]

[Add additional representations that are unique to the entity's business or industry. See the following for additional illustrative representations.]

15. To the best of our knowledge and belief, no events have occurred subsequent to the balance-sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements.4

[Name of Owner or Chief Executive Officer and Title]

[Name of Chief Financial Officer and Title, where applicable]

Representation letters ordinarily should be tailored to include additional appropriate representations from management relating to matters specific to the entity's business or industry. The following is a list of additional representations that may be appropriate in certain situations. This list is not intended to be all-inclusive. The accountant should consider the effects of pronouncements issued subsequent to the issuance of this section.

Appendix Form V

General

Condition Illustrative Examples

The effect of a new accounting principle is not known.

Justification exists for a change in accounting principles.

management's plans.

The entity has a variable interest in another entity.

The work of a specialist has been used by the entity.

We have not completed the process of evaluating the impact that will result from adopting the guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) [XXX, Title], as discussed in note [X]. The company is therefore unable to disclose the impact that adopting FASB ASC XXX will have on its financial position and the results of operations when such statement is adopted.

We believe that [describe the newly adopted accounting principle] is preferable to [describe the former accounting principle] because [describe management's justification for the change in accounting principles].

Financial circumstances are strained, with disclosure of management's intentions and the entity's ability to continue as a going concern.

Note [X] to the financial statements discloses all of the matters of which we are aware that are relevant to the company's ability to continue as a going concern, including significant conditions and events, and

The possibility exists that the value of specific significant long-lived assets or certain identifiable intangibles may be impaired.

We have reviewed long-lived assets and certain identifiable intangibles to be held and used for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable and have appropriately recorded the adjustment.

Variable interest entities (VIEs) and potential VIEs and transactions with VIEs and potential VIEs have been properly recorded and disclosed in the financial statements in accordance with accounting principles generally accepted in the United States of America.

We have considered both implicit and explicit variable interests in (a) determining whether potential VIEs should be considered VIEs, (b) calculating expected losses and residual returns, and (c) determining which party, if any, is the primary beneficiary.

We have provided you with lists of all identified variable interests in (a) VIEs, (b) potential VIEs that we considered but judged not to be VIEs, and (c) entities that were afforded the scope exceptions of FASB ASC 810, Consolidation.

We have advised you of all transactions with identified VIEs, potential VIEs, or entities afforded the scope exceptions of FASB ASC 810.

We have made available all relevant information about financial interests and contractual arrangements with related parties, de facto agents, and other entities, including but not limited to their governing documents, equity and debt instruments, contracts, leases, guarantee arrangements, and other financial contracts and arrangements.

The information we provided about financial interests and contractual arrangements with related parties, de facto agents, and other entities includes information about all transactions, unwritten understandings, agreement modifications, and written and oral side agreements.

Our computations of expected losses and expected residual returns of entities that are VIEs and potential VIEs are based on the best information available and include all reasonably possible outcomes.

Regarding entities in which the Company has variable interests (implicit and explicit), we have provided all information about events and changes in circumstances that could potentially cause reconsideration about whether the entities are VIEs or whether the Company is the primary beneficiary or has a significant variable interest in the entity.

We have made and continue to make exhaustive efforts to obtain information about entities in which the Company has an implicit or explicit interest but that were excluded from complete analysis under FASB ASC 810 due to lack of essential information to determine one or more of the following: whether the entity is a VIE, whether the Company is the primary beneficiary, or what accounting is required to consolidate the entity.

We agree with the findings of specialists in evaluating the [describe assertion] and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.

Appendix Form V

Assets


Cash

Financial Instruments

Management intends to and has the ability to

hold to maturity debt securities classified as held-to-maturity.

Receivables

Receivables have been recorded in the

financial statements.

Inventories

Excess or obsolete inventories exist.

Investments

Deferred Charges

A deferred tax asset exists at the balance-sheet date.

Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances, lines of credit, or similar arrangements have been properly disclosed.

Disclosure is required of compensating balances or other arrangements involving restrictions on cash balances, line of credit, or similar arrangements.

Debt securities that have been classified as held-to-maturity have been so classified due to the company's intent to hold such securities to

maturity and the company's ability to do so. All other debt securities have been classified as available-for-sale or trading.

Management considers the decline in value of debt or equity securities to be temporary.

We consider the decline in value of debt or equity securities classified as either available-for-sale or held-to-maturity to be temporary.

Management has determined the fair value of significant financial instruments that do not have readily determinable market values.

The methods and significant assumptions used to determine fair values of financial instruments are as follows: [describe methods and significant assumptions used to determine fair values of financial instruments]. The methods and significant assumptions used result in a measure of fair value appropriate for financial statement measurement and disclosure purposes.

The following information about financial instruments with off-balance-sheet risk and financial instruments with concentrations of credit risk has been properly disclosed in the financial statements:

1. The extent, nature, and terms of financial instruments with off-balance-sheet risk.

Financial instruments with off-balance-sheet risk and financial instruments with concentrations of credit risk exist.

2. The amount of credit risk of financial instruments with off-balance-sheet risk and information about the collateral supporting such financial instruments.

3. Significant concentrations of credit risk arising from all financial instruments and information about the collateral supporting such financial instruments.

Receivables recorded in the financial statements represent valid claims against debtors for sales or other charges arising on or before the

balance-sheet date and have been appropriately reduced to their estimated net realizable value.

Provision has been made to reduce excess or obsolete inventories to their estimated net realizable value.

[For investments in common stock that are either nonmarketable or of which the entity has a 20 percent or greater ownership interest, select the appropriate representation from the following:]

The equity method is used to account for the company's investment in the common stock of [investee] because the company has the ability to exercise significant influence over the investee's operating and financial policies.Unusual considerations involved in determining the application of equity

accounting.

The cost method is used to account for the company's investment in the common stock of [investee] because the company does not have the ability to exercise significant influence over the investee's operating and financial policies.

We believe that all material expenditures that have been deferred to future periods will be recoverable.

Appendix Form V

Liabilities

ndition Illustrative Examples

Debt

Tax-exempt bonds have been issued. Tax-exempt bonds issued have retained their tax-exempt status.

Taxes

Agreements may exist to repurchase assets previously sold. Agreements to repurchase assets previously sold have been properly disclosed.

Pension and Postretirement Benefits

An actuary has been used to measure pension liabilities and costs.

Involvement with a multiemployer plan exists.

Postretirement benefits have been eliminated.

Current employee layoffs are intended to be temporary.

Form V

Equity

Condition Illustrative Example

Income Statement


There may be a loss from sales commitments.

There may be losses from purchase commitments.

The company has excluded short-term obligations totaling $[amount] from current liabilities because it intends to refinance the obligations on a long-term basis. [Complete with appropriate wording detailing how amounts will be refinanced as follows:]

The company has issued a long-term obligation [debt security] after the date of the balance sheet but prior to the issuance of the financial statements for the purpose of refinancing the short-term obligations on a long-term basis.Short-term debt could be refinanced on a long-term basis and

management intends to do so.

The company has the ability to consummate the refinancing by using the financing agreement referred to in note [X] to the financial statements.

We intend to reinvest the undistributed earnings of [name of foreign subsidiary].Management intends to reinvest undistributed earnings of a foreign subsidiary.

Contingencies Estimates and disclosures have been made of environmental remediation liabilities and related loss contingencies.

Provision has been made for any material loss that is probable from environmental remediation liabilities associated with [name of site]. We believe that such estimate is reasonable based on available information and that the liabilities and related loss contingencies and the expected outcome of uncertainties have been adequately described in the company's financial statements.

We believe that the actuarial assumptions and methods used to measure pension liabilities and costs for financial accounting purposes are appropriate in the circumstances.

We are unable to determine the possibility of a withdrawal liability in a multiemployer benefit plan. or We have determined that there is the possibility of a withdrawal liability in a multiemployer plan in the amount of $[XX].

We do not intend to compensate for the elimination of postretirement benefits by granting an increase in pension benefits. or We plan to compensate for the elimination of postretirement benefits by granting an increase in pension benefits in the amount of $[XX].

Employee layoffs that would otherwise lead to a curtailment of a benefit plan are intended to be temporary.

Management intends to either continue to make or not make frequent amendments to its pension or other postretirement benefit plans, which may affect the amortization period of prior service cost, or has expressed a substantive commitment to increase benefit obligations.

We plan to continue to make frequent amendments to its pension or other postretirement benefit plans, which may affect the amortization period of prior service cost. or We do not plan to make frequent amendments to its pension or other postretirement benefit plans.

Capital stock repurchase options or agreements or capital stock reserved for options, warrants, conversions, or other requirements exist.

Capital stock repurchase options or agreements or capital stock reserved for options, warrants, conversions, or other requirements have been properly disclosed.

Provisions have been made for losses to be sustained in the fulfillment of or from inability to fulfill any sales commitments.

Provisions have been made for losses to be sustained as a result of purchase commitments for inventory quantities in excess of normal requirements or at prices in excess of prevailing market prices.

Nature of the product or industry indicates the possibility of undisclosed sales terms.

We have fully disclosed to you all sales terms, including all rights of return or price adjustments and all warranty provisions.

1 This date should be the date that the client presents and signs the letter. In no event should the letter be presented and signed prior to the date of the accountant's review report.

2 The qualitative discussion of materiality used in this letter is adapted from Financial Accounting Standards Board Statement of Financial Accounting Concepts No. 2, Qualitative Characteristics of Accounting Information.

3 If management has not consulted a lawyer regarding litigation, claims, and assessments, the representation might be worded as follows:

We are not aware of any pending or threatened litigation, claims, or assessments or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance with Financial Accounting Standards Board Accounting Standards Codification 450, Contingencies, and we have not consulted a lawyer concerning litigation, claims, or assessments.

4 If the accountant dual dates his or her report, the accountant should consider whether obtaining additional representations relating to the subsequent event is appropriate.

Form W


FINANCIAL REVIEW WORKSHEET

SUBSEQUENT EVENTS

Church Name & Address Date of Review Review PeriodEntity ID:Church/School Name:City, State:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Form X


Review Reporting Checklist


Yes N/A1. Is the report in accordance with the wording recommended by Columbia Union for a review?

2. Are all the financial statements required by Columbia Union coverd by report?

3. Are all supplementary schedules covered by the report? (eg: Tithe Remittance)

4. Are the dates of the periods being reported on properly stated in report?

5. Are financial statements properly titled?

6. If comparative financial statements are presented, does the report comply with local church accounting manual?

7.

Date Report Released to Local Entity:

Instructions: This checklis can be used to document reporting considerations for all review engagements. It presents common reporting requirements for reviewed financial statements. It should be emphasized, however, that this checklist cannot be a substitute for an accountant's exercise of professional judgement and knowledge of North American Division accounting policies.

Is the report dated as of the completion of the ewview procedures, and does it contain a signature of the auditor?

Form Y


Technical Review ChecklistReview Engagements

Church Name: Balance Sheet Date: Technical Reviewer: Date:

Done By1. Review the auditor's report for appropriateness and consistency with Columbia Union guidelines.2. Review financial statement captions and descriptions used.3. Review statements for appropriate references to the auditor's report and notes to the financial statements.4. Review notes and content wording.5. Review disclosures for inaccuracies and omissions, including comparison with disclosure checklist if appropriate.6. Review the various checklists used in the engagement for potential problems.7. Review the church representation letter for appropriateness and consistency.8. Approve issuance of the report on the financial statements.

Supervisor's Signature: Date:

Form Z


AUDITOR'S LOG

Auditor's Name(s)

Church NameChurch LocationHotel Stayed InHotel Rate and RatingLocation of AuditDate Audit BeganDate Audit EndedTime Spent on AuditOpinion GivenObservation

ABC CONFERENCE AUDITING SERVICE

Auditor's Report

XYZ Seventh-Day Adventist Church

December 31, 2014 and 2013

AN AUDIT SERVICE OF ABC CONFERENCE OF SEVENTH-DAY ADVENTIST

Financial Statements

ABC CONFERENCE SEVENTH-DAY ADVENTISTSCombined Statement of Financial Position

August 31, 2014 and 2013

2014 2013ASSETS Total* Total*

Current Assets Cash & Cash Equivalents (Note 2) - - Investments (Note 3) - - Total Current Assets -

LIABILITIES

Due to ABC Conference (Note 2) - - Note Payable - Columbia Union (Note 3) - - Total Liabilities - -

FUND BALANCE

Operating Fund 0 0 Memorial/Special Funds 0 0 Capital Fund 0 0 Capital Loan Offset 0 0 Total Fund Balance 0 0

Total Liabilities and Fund Balance 0 0

Notes to the financial statementsare an integral part of this statement

... 1 ...

See note 4 - Tuition Receivables See note 5 - Remittance Payable See note 6 - Notes Payable (Unsecured-Operating)See note 7 - Notes Payable-Other than OperatingSee note 9- Property Value

XXX OF SEVENTH-DAY ADVENTISTS ANDXXX CORPORATION OF SEVENTH-DAY ADVENTISTS

Combined Statement of Changes in Net AssetsFor the Years Ended December 31, 2014 and 2013

Operating 2014 2013Changes in Unrestricted Net Assets Funds Total TotalUnrestricted Revenues and Support: Gross Tuition Income - - - Tithe Percentages Passed On - - - Net Tithe Income - - - Special Assistance Fund - - - Investment Earnings (Note 3) - - - Donations - - - Church School Income - - - Miscellaneous Income - - - Total Unrestricted Revenues - - - Trust Funds (Note 8) - - - Total Unrestricted Revenues and Support - - -

Expenses and LossesProgram Services FunctionsChurch Ministries - - - Educational - - - Special Services - - - Total Program Services Function - - -

Supporting Services FunctionAdministration - General - - - Administration - Staff - - - Total Supporting Services Function - - - Total Expenses and Losses - - -

Net Increase (Decrease) from Operations - - -

Nonoperating ActivityNet Assets Released from Restrictions (Note 8) - - - Net Increase (Decrease) from Nonoperating Activity - - -

Increase (Decrease) Unrestricted Net Assets - - -

0Notes to the Financial StatementsDecember 31, 2014 and 2013

2014 2013 Note 1 - Cash and bank

Checking Account 0 0 Savings Account - Wells Fargo Bank 0 - Savings Account - Columbia Union Revolving Fund 0 -

Total 0 0

Note 2 - Conference FundsTithe 0 0 Offerings 0 0

Total 0 0 Less Remitted to Conference 0 0

Balance under/(over) paid - -

Note 3 - Notes PayableColumbia Union Revolving Fund @ 4.25%, $3,840 per month 0 0

0 0

... 2 ...

0Statement of Conference RemittancesFrom January 1, to December 31, 2014

Remitted DateMonth Tithe Offering Total Amount Check # Sent

January - - - - 0 12/30/1899

February - - - - 0 12/30/1899

March - - - - 0 12/30/1899

April - - - - 0 12/30/1899

May - - - - 0 12/30/1899

June - - - - 0 12/30/1899

July - - - - 0 12/30/1899

August - - - - 0 12/30/1899

September - - - - 0 12/30/1899

October - - - - 0 12/30/1899

November - - - - 0 12/30/1899

December - - - - 0 12/30/1899Total 2014 0 0 0 0 Total 2013 19,777 1,607 21,384 0 % Change (100.00) (100.00) (100.00)

... 4 ...

NOTE 1 - Organizational Description and Summary of Significant Accounting Policies

Organization Description

NOTE 1 - Summary of Significant Accounting Policies (continued)

The Organizations' primary purpose is to spread the gospel of Jesus Christ throughout its territory. The Church supports the operation of all departments and ministries in its territory, and is a member organization of the xxx Conference of Seventh-day Adventists. The Corporation holds legal title to all denominational property in its territory, and performs certain fiduciary duties. The Organizations receives most of their revenue in the form of contributions from individuals in its constituent congregations.

The Organizations are a religious not-for-profit organization, and are exempt from Federal, State, and Local income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code, and corresponding sections of applicable state and local codes: except for taxes on Unrelated Business Income as described in Sections 511-514 of the Internal Revenue Code.

Summary of Significant Accounting Policies

(a) The significant accounting policies of the Organizations are essentially the same as generally accepted accounting principles for not-for-profit organizations as promulgated by the Financial Accounting Standards Board. The significant policies are described below to enhance the usefulness of the financial statements. The financial statements of the Organizations have been prepared on the accrual basis of accounting.

(b) The preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(c) Restricted Resources: The Organizations report gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

The Organization reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used, and gifts of cash or other assets that must be used to acquire long-lived assets, are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service.

The Organizations report gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used, and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organizations report expirations of donor restrictions when the donated or acquired long-lived assets are placed in service.

(e) Cash and Equivalents: Cash equivalents are highly-liquid assets of the Operating Funds, which are readily convertible to cash and have a maturity date of less than three months from date of acquisition. Cash and investments of Funds other than operating are not classified as cash and cash equivalents. The increase or decrease in nonoperating cash and investments is reported in the statement of cash flows as proceeds or purchases of investments.

(f) Fair Value of Financial Instruments: Following are the major methods and assumptions used to estimate fair values:

NOTE 1 - Summary of Significant Accounting Policies (continued)

NOTE 2 - Cash & Cash Equivalents 2011 2010Operating Plant Total Total

Checking Accounts - - - - Saving Accounts - - - -

Short-term financial instruments are valued at their carrying amounts included in the statement of financial position, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. This applies to cash, cash equivalents, accounts receivable, and certain current liabilities.

Investment securities are valued at quoted market price or other reasonably obtainable market value estimate at the reporting date for those or similar securities. The difference between aggregate market value and historical cost for each type of security is recorded in a valuation account. The change in this account during each period is recognized as a gain or loss.

Notes receivable are valued at the amortized amount receivable at the reporting date. Allowance has been made for notes which are not expected to be repaid. The net total approximates the discounted value of future cash flows expected to be received. Because of the difficulty and inherent subjectivity involved in determining fair values, which is not susceptible to independent substantiation, management has not attempted to estimate the fair value of loans receivable from related or affiliated entities. Such loans, by intent and practice, are expected to be held to maturity and are valued at face value.

(g) Current Assets & Liabilities: Assets and liabilities are classified as current or long-term, depending on their characteristics. This excludes from current assets, cash and claims to cash that are: restricted to use for other than current operations, committee allocated for the acquisition or construction of plant assets or for the liquidation of plant fund debt, or held as agent for others. This excludes from current liabilities: the long-term portion of all debt, plant fund debt payable within the next fiscal year to the extent covered by designated plant fund liquid assets, or amounts held as fiscal agent for others. Working capital (current assets less current liabilities) for the Organizations usually reflects working capital of only the operating funds, since usually no assets or liabilities of the plant are classified as current.

(h) Investment Income: Ordinary income from investments, loans, and the like is accounted for in the fund owning the assets.

(i) Affiliated Organizations: The Organizations operate through several organizations with which it is affiliated by reason of economic interest and/or shared membership on the respective governing committees. The financial statements of these other organizations are not consolidated with these Organizations. Inter-organization transactions carried on in the ordinary course of business are handled through current accounts receivable and payable, and are settled generally on a monthly basis. Other financial transactions involving appropriations and loans are detailed in Notes 5, 6, 8, 9, and 14 below. These other organizations are:

Columbia Union Conference of SDA (Union)--An unincorporated entity which is the regional headquarters of the Seventh-day Adventist denomination for the geographic area in which XXX Church is located. In addition to the monthly remittance passed to the Conference.

(j) Fund Accounting: To ensure observance of limitations and restrictions placed on the use of resources available to the Organizations, the accounts are maintained in accordance with the principles of fund accounting. Resources are classified for accounting and reporting into funds established according to their nature and purposes. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds have been combined into groups, and totals are presented for the Organizations as a whole. The funds and fund groups are described in further detail below.

Operating Funds: Unrestricted and restricted resources available for current operations. This fund group reflects the combined operating activity of the Conference Operating Fund and the Corporation Operating Fund. Separate financial statements for each of these funds are prepared by the Organizations as supplementary information.

be issued. There were no subsequent events noted which required disclosure in, or adjustment to, the financial statements for the year ended December 31, 2011.

Total Cash & Cash Equivalen - - - -

NOTE 3 - Investments 2011 2010

Investments Held for Operati Cost Market Cost MarketMoney Market - - - - Certificates of Deposit - - - - Total Cost - For Operating - - - -

Composition of Investment Return Non-Operating Operating 2011 2010Activity Activity Total Total

Investment Income (Interest - - - - Realized Gain (Loss) on Inve - - - - Total Investment Return - - - -

2011Unrealized

AppreciationCost Fair Value or (Decline)

Held for Operating Purposes:Money Market - - - Total Operating Investments - - -

2010Unrealized

AppreciationCost Fair Value or (Decline)

Held for Operating Purposes:Certificate of Deposit - - - Total Operating Investments - - -

NOTE 3 - Investments (continued)

Level 1: Observable quoted market price in active markets for identical assets or liabilities.

Level 3: Unobservable inputs and assumptions based on the best information available to the entity.

The Organizations used the following inputs to determine fair values of assets valued on a recurring basis.2011

Level 1 Level 2 Level 3Money Market - - -

- - -

2010Level 1 Level 2 Level 3

The Organizations are subject to accounting principles that require disclosure about the information used to determine fair values of assets and liabilities on either a recurring or non-recurring basis. This information is separated into three "levels" of input, as follows:

Level 2: Direct or indirect observable market data, such as quoted prices in inactive markets for identical assets and liabilities, quoted prices in active markets for similar assets or liabilities, and other observable market data correlated to identical or similar assets or liabilities.

Certificates of Deposits - - - - - -

NOTE 4 - Accounts Receivable2011 2010

Members/Students Receivable - - Church Member Receivable - -

- - - - - - - -

Less: Allowance for Uncollectable Accounts - - Net Accounts Receivable - -

NOTE 5 - Accounts Payable2011 2010Total Total

Conference Remittance Payable - - Other Denominational Entities - - Commercial Accounts - - Accounts Receivable Credit Balances - - Payroll Withholding (Taxes/TSA/Savings) - - Miscellaneous - - Total Accounts Payable - -

NOTE 6 - Notes Payable (Unsecured-Operating)2011

Operating Fund LongCurrent Term Total

Columbia Union Revolving Fund-ARM, 6.50% - - - Columbia Union Revolving Fund-Bridge Loan, 6.50 - - - Total Notes Payable - Operating - - -

2010Operating Fund Long

Current Term TotalColumbia Union Revolving Fund-ARM, 6.50% - - - Columbia Union Revolving Fund-Bridge Loan, 6.50 - - - Total Notes Payable - Operating - - -

NOTE 7 - Notes Payable-Other than Operating 2011Long

Plant Fund Current Term TotalRicoh Copier Lease, 7% - - - Total Notes Payable - Other than Operating - - -

2010Plant Fund Long

Current Term TotalRicoh Copier Lease, 7% - - -

Total Notes Payable - Other than Operating - - -

NOTE 8 - Trust Funds

Temporarily restricted net a Balance Restricted Restrictions Balancefor the following purposes o 12/31/10 Income Released 12/31/11Education Scholarship - - - - Multi Cultural Ministries - - - - Church Buildings - - - - Children's Ministry - - - - Youth - - - - Church School - - - - Education - - - - General Expense - - - - Haiti Relief - - - - General Admin - D Min. Subsidy - - Total Oper. Fund Temporarily - - - -

Note- 9 Property Value Value Conference Assets Church Value - Land Value - Vehicle Value - Fixed Asset 0

0Statement of Financial Activity and Changes in Fund Balance

For the year ended December 31, 2014

Increase Beginning BalanceFund Income Expenses Net Transfers (Decrease) 12/31/2013

Operating FundCombined Budget - - Sabbath School - - Church School - - Pathfinders - - Adventurers - - Church Ministries - - Men of Faith - - Church Expenses - - Morning Song - - Church Rental - - Total Operating - - - - - -

Memorial/Special FundsMemorial Fund - - - - Memorial Fund - - - -

- - - - - - Capital FundBuilding Fund - - Total Capital Fund - - - - - -

Total Operating & Capital - - - - - -

... 3 ...

0Statement of Financial Activity and Changes in Fund Balance

For the year ended December 31, 2014

Ending Balance12/31/2014

- - - - - - - - - - -

- - -

- -

-

... 3 ...

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