Our Blog

Internal Controls & Onsite Transactions
by Mary Stange, Client Advisor

We are continuing our review of the importance of internal controls in Church Finances, and key processes. While a majority of Churches and Schools have moved to electronic transactions for main income streams like regular giving or tuition, there will always be some transactions that happen onsite. It is good to have best practices in place around onsite transactions. It is particularly important to examine and clearly communicate standards for high-traffic areas where there is a lot going on.

Examples of onsite transactions include, but are not limited to field trip income and expense, recovery of an NSF tuition transaction, annual tuition payments, registration fees, or one-time payments.

1. Examine how monies are tracked at the time of receipt.
   1. Is your staff equipped and enabled to record as much relevant information as is necessary for a timely and efficient entry of the data after receipt?
      1. When it is something tracked, like Tuition, it is import to ensure that monies received on-site are recorded into your Tuition Management software in a timely manner.
      2. Capture important information: 
         1. Who
         2. What
         3. Why
         4. Where
         5. How
      3. If you can avoid using paper, it will make your process more efficient, but if that is your only option, ensure all payments are accompanied by a payment slip for the bookkeeper.
      4. Using Square or a Point of Sale can be great, but ensure that staff are equipped to record the necessary information into the program at the time of the exchange.
      5. Is there an electronic form you can complete simultaneously during the exchange?

1. Where are the monies kept on-site?
   1. Avoid the following
      1. Accessible by many
      2. Portable
      3. Irregular relief schedule
   2. On-Site Checklist
      1. Safe that is bolted to the floor that remains locked
         1. If possible, document safes should be separate from safes that contain money
      2. Limited staff with access
      3. Limited amount of petty cash
      4. Regular deposits made at the bank where two staff members are assigned to deliver deposits together.
2. Clearly communicate safeguards and strategies to your staff and you will have peace that your internal controls are working for you Catholic organization.