American Accounting Association 2006 Midwest Region Meeting March 30 – April 1 Chicago, Illinois

Saturday, April 1, 11:00 a.m. to 12:50 p.m.
Concurrent session 6D - Accounting History and Corporate Governance (History, Government and Nonprofit)

Title: Corporate Governance in Religious Organizations: a Study of Current Practices in the Local Church

Raymond J Elson, DBA, CPA Valdosta State University	Susanne O’Callaghan, PhD, CPA, CIA Pace University
John P. Walker, PhD, CPA Queens College (NY)

ABSTRACT: This paper addresses corporate governance practices in religious organizations by examining fiscal oversight and financial management practices in the local church. Fiscal oversight includes the existence of an independent board of directors with a financial expert and documented policies and procedures. Financial management includes the existence and use of a budget, controls over cash receipts and disbursements, financial reporting and tax reporting and compliance. A questionnaire was used to collect data from various denominations. The results showed that churches do have adequate fiscal oversight and financial management controls. However, opportunity exists for churches to document their internal policies and procedures and communicate them to employees. The accounting professional could help church personnel bridge their knowledge gap by educating them on accounting standards such as SFAS 116 and 117.

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