Financial Review Guidelines
Financial Review Guidelines
Each Parish within the Diocese of Kentucky is responsible for submitting financial review statements to the Bishop of Kentucky. These statements must be received by September 1st of the year following the calendar year being reported. To ensure financial statements are fairly stated, canon law requires an annual audit to be completed by each parish. For direction in completing the annual audit, Trustees & Council adopted the Financial Review Program based on the audit guidelines established by the Domestic and Foreign Missionary Society of the Protestant Episcopal Church in the USA.
The completed Parochial Report is due by March 1st to the Diocesan office. Duplicate Review copies of pages 5 and 9 are also due as part of the Financial Review further outlined below.
Click here for a letter from Gibbs Reese regarding your 2023 Financial Review, due September 1, 2024.
Documents Due to the Diocese Financial Review Committee by Sept. 1
There are seven (7) documents required for the satisfactory completion of the Diocesan Financial Review. Each is listed below with relative footnote(s).
1. Parochial Report, pages 5 and 9 (supplemental page) for the just completed (previous) calendar year.
· Based on the Canonical requirements, these same two documents are to be submitted to the Diocesan offices by March 1st. We are simply asking that you make another copy of same, review the statistics therein and include these as part of your materials.
2. Balance Sheet
· This financial data/calculation should have been necessary for you to properly complete page 9 (the supplemental page) of the Parochial Report.
3. Income and Expense Statement
· This financial data/calculation should have been necessary for you to properly complete page 4 of the Parochial Report.
4. Property and Liability Insurance – Declaration page(s) only.
· May be available from your insurance carrier(s).
5. Internal Control Questionnaire**
· Complete responses including comments and notations as appropriate.
6. Internal Financial Review Findings on Policies and Procedures Certificate**
· Complete requested responses, identify Parish Internal Financial Review Committee members and include respective signatures.
7. Internal Financial Review Committee Certificate**
· Complete requested responses, identify Parish Internal Financial Review Committee members and include respective signatures.
** If not available within your parish, this document may be found in Chapter VI of the Manual of
Business Methods in Church Affairs.
Recommended Sequence of Activities
The Diocesan Financial Review Committee recommends the following sequence for consideration:
1. The Vestry/Bishop’s Committee should select your own Internal Financial Review Committee. This Committee should be a minimum of 3 individuals not related by blood or marriage to any check signers.
2. Conduct your individual financial review of the following documents in order to prepare for and subsequently complete the previously stated required documents submission
· Bank statements and reconciliations of all accounts, i.e. checking, savings, investments and discretionary funds.
· Balance sheets and Income/Expense statements for both operating and discretionary accounts. (Financial Reports)
· Internal Controls Questionnaire.
· Vestry or Bishop’s Committee Minutes relating to financial matters.
· All cash receipts and cash disbursements along with supporting documentation including authorized signatures, payroll, vouchers, pledge and plate offerings, contracts, etc.
· Listing of all active insurance policies with corresponding coverage value(s).
3. Prepare both the Internal Financial Review Findings on Policies and Procedures and the Internal Financial Review Committee Certificate forms. These forms subsequently require presentation to and acceptance from your Vestry/Bishop’s Committee.
4. Vestry/Bishop’s Committee accepts the Internal Financial Review Committee’s reports. Any challenges and/or modifications to the submitted documents must be done in writing and included with the submission to the Diocese of Kentucky’s Financial Review (Audit) Committee.
5. Vestry/Bishop’s Committee submits one copy of each of the seven (7) aforementioned documents to the Diocese of Kentucky 1) via mail ATTN. - Financial Review Committee,
2) via facsimile (502-587-8123) or 3) electronically (Brian@episcopalky.org) by September 1st.
To view this information in PDF format, click here.
2021WebsiteAuditProcceures.02.11.2022
