Alfred Jones, CPA offers financial statement preparation (attest services) to local Churches and other Christian Ministries. Financial statement preparation includes Compilations and Other Services.
When Should a Church Obtain CPA Prepared Financial Statements?
CPA prepared financial statements serve several purposes and provide a benefit to the ministry by providing leadership with the ability to demonstrate their commitment to financial accountability and transparency. Here are a few guidelines to use when determining what level of CPA prepared financial statements your church needs.
In the case of borrowing funds from a lender for building and other capital needs; church lenders typically require CPA compiled financial statements for loan amounts of $1MM and less, CPA reviewed financial statements for loan amounts of $1MM to $2.99MM and CPA audited financial statements for loan amounts of $3MM and higher.
I recommend that churches with annual revenues of $5MM and higher receive a CPA audit every year especially if there has been turnover in accounting staff positions and/or substantial financial growth. Churches with annual revenues of $1MM to $4.9MM should receive an annual CPA audit every 3 to 5 years with CPA reviewed financial statements in the off years. Ministries with annual revenues of $999K and under should have a review every other year with CPA compiled financial statements in the off year.