Church Audit Information Required
Information you’ll need:
- Income Statement (Income and expenses for the past three years)
- Balance Sheet (Assets, Liabilities, Equity. Investments, Endowments)
- Brief history of your church
- General demographics and number of members, attendees and staff
- Partners that you have on campus and off i.e. A/A, scouts, preschool, missionaries, etc.
- Lease terms and other tenant information
- Property zoning, historical designation, entitlements, encumbrances etc.
Glossary/Definitions:
Judicatory: Geographically designated governing body of a denomination, sometimes called diocese or presbytery or conference. These bodies often hold legal control or authority over church property decisions.
Graves: Marked graves or a graveyard on the property
Market value of property: This differs than tax assessed value and is determined by the market value of the property and its zoning. One way to get a basic idea of the market value is to look at a similarly located, zoned and sized property in your neighborhood and check its for sale price.
Mission Adjacent Partner: This is another organization, that could serve as a primary tenant or partner to inhabit your space. These partners are mission focused entities and typically non-profit organizations. They are not typically for profit entities. An example would be a pre-school, affordable housing, homeless shelter, school etc. Typically, these organizations are larger in size (employees and budget) than the church.
Entitlements: The amount to which you have control over the property. For instance, is there a driveway that is shared by a neighbor? Is there a clause regarding that the property must go back to its original owner?
Encumbrances: Are there any restrictions or burdens on the property? Is there a historical designation on the property? Did you have a prior agreement to develop the property with a developer that still hold legal authority on the property?
Partners in mission: A partner in mission can be any individual or organization that is supported or works with your church. It can range from missionaries that you support, A/A groups, scouts, advocacy and community development groups.
Liabilities: These are amounts that the church owes. It can be in the form of a mortgage, line of credit, or loan.
