Final Exam Flashcards
What is Stewardship?
The careful and responsible management of something entrusted to one’s care. -Webster
What is fiduciary?
The one who is charged with a confidence or trust as it relates to the management of someone else’s money.
Local officers and responsibility
The delegation of authority to local officers or employees does not lessen or relive the corps commanding officers of ultimate responsibility.
Three main factors that contribute to fraudulent activity
Opportunity, Rationalization, and Financial Preassure
Top three reasons fraud happens at church
Lack of segregation of duties, trust, and change
What is Internal Control?
Systematic measures instituted by an organization to:
to make sure the assets and records of the business are free from theft and manipulation
Principles of internal control
- establishment of responsibility
- segregation of duties
- documentation of procedures
- physical, mechanical, and electronic controls
- independent internal verification
- human resource controls
The collection - basic checkpoints
- receiving the collection
- counting the collection
- depositing the collection
What is money management?
The art and science of developing and carrying out a spending plan.
Money management functions - Receiving
actual physical receiving. counting, safeguarding, preparing for deposit.
Money management functions - recording
creating records showing source and amount of income, and purpose and amount of expenditure
Money management functions - budgeting
making decisions about what to do with available income and developing a plan to implement those decisions
Money management functions - spending
the “outgo” side of money management just as receiving in the “income” side
What is net worth?
the sum of all you own minus all you owe
Why be a good steward?
stewardship enables the church to perform its ministries of worship, evangelism, fellowship, nurture, and service.