BAC Associates, Inc.


YOUR FINANCIAL TEMPERATURE

by Dr. J. R. Bier

Reproduced from the Christian Law Association Defender Magazine, Volume III, Issue 5, May 1980.

 

1. Do you receive weekly or biweekly a current up-to-date, composite situation report of all your pertinent statistics and control figures?

2. Do you have a budget for each ministry where each account is assigned to a specific individual for control purposes?

3. Do you receive promptly a monthly financial report listing the actual expense versus budget and reporting unfavorable or favorable performances on a monthly and year-to-date basis?

4. Do you receive monthly a completely reconciled, verified Accounts Receivable report from your school which will balance to your detailed parents' ledger sheets?

5. Do you receive a report (2 to 4 times a month) by parents' name of all delinquent Accounts Receivable and are these parents receiving an automatic request for payment?

6. Do you receive a monthly report with a detailed listing by vendor or supplier of all your accounts payable aged according to "time" outstanding and unpaid?

7. Do you insist that all discretionary type purchases, including your own, be written up on a purchase order?

8. Do your purchase orders (#7 above) for discretionary purchases all (no exception) have to be approved by the responsible person held accountable for budgetary control?

9. Did you recently make a purchase of a program or equipment of $3,000 or more and not have a written feasibility and cost return study prepared by an independent third party?

10. Do your monthly Financial Statements have a written reconciliation to your bank accounts, both beginning and ending, to prevent financial reports which do not present an accurate accounting?

11. Do you have a payroll account and checkbook where gross payroll amounts are transferred just prior to the issuance of the payroll checks?

12. Do you receive a monthly composite payroll recap listing Gross and Net Payroll and Deductions which ties out to the Payroll bank statement?

13. Do you receive a verified copy of the quarterly IRS tax withholding report (941 Form) properly reconciled to the composite payroll recap?

14. Do you or your representatives receive the monthly bank statements, including Sinking Funds status, and briefly review them prior to reconciliation by someone other than the bookkeeper?

15. Do you have the money counted, verified and recorded by more than one person and are all individuals handling funds bonded by your insurance company?

16. Do you receive monthly a detailed analysis of usage trends for your utility expense?

17. Are all of your valuables and marketable securities including your own treasury bonds (donated bonds) regularly verified and then a written report furnished to you of the contents and assigned value?

18. Are loans or transfers between ministries or financial periods controlled by a written document that requires your signature? (This includes using next year's tuition to complete the current year as well as using Vendor's funds from fund raising projects and cafeteria operation.)

19. Are all of your vehicles under a controlled usage pattern and insured against liability claims for at least $1,000,000?

20. Do you have all insurance renewals verified to current circumstances: ie., active vehicles only insured, contents insurance accurate, out-buildings properly insured, and do you have an insurance summary report of all coverages?

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Count the total number of "Yes" answers.

SCORING (Based upon the number of "Yes" answers):

20 Congratulations...100%. You operate an "airtight" ship.

17 - 19 Your church is in good shape and the corrections indicated can be undertaken successfully.

13 - 16 You are fair but you ought to move aggressively ahead in establishing controls.

9 - 12 Time is short. Pray about securing professional assistance at once.

0 - 8 Run! Do not walk, for help. You are extremely vulnerable to a financial crisis and you may need crisis-management at once.

NEED SOME ANSWERS!

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