Integrated Accounting Principles Fall 2018 Homework Problem -50 points THIS IS A TRUE STORY... The financial secretary had stolen $900,000 from the church over the last 20 years. The tale of embezzlement. How could they not have noticed losses that totaled $900,0002 and lay leaders of the church sat in stunned silence. As they listened, the pastor told thata ? Many of them thought of the times the church had struggled to meet its financial obligations. They thought of the campaigns they had conducted asking faithful church members to give sacrificially Over the next few weeks, the sordid tale began to unfold. The church's primary source of income was contributions through the Sunday offerings. Two deacons were responsible for placing the cash and checks from the offering plates in a zippered bag and putting the bag in the office safe for the financial secretary to count, record and deposit on Monday. The financial secretary kept track of the donations of individual members for tax reporting purposes. She posted the gifts in the ledger, prepared the deposit slip and went to the bank. The financial secretary was also responsible for paying all the bills that came to the church. The administrative assistant opened all the mail. Any bills were forwarded directly to the financial secretary. The financial secretary carefully reviewed the bills to determine if they were appropriate. She maintained a list of "approved" suppliers to help ensure that purchases were made at the lowest price and that members' businesses were patronized when possible. She also determined which area of the church budget to charge for the bill. She recorded the bill in the accounting system, then wrote and signed the check for payment. If the payment exceeded $1,000, an additional signature was required on the check. Monthly, the financial secretary was responsible for preparing the payroll for the church staff. While all ministerial staff were paid a salary, administrative, janitorial and kitchen staff were paid on an hourly basis. The financial secretary went over the weekly time reports, applied the appropriate rate and determined the amount of the gross pay. She then determined the amount for various deductions including income tax withholdings, unemployment tax, retirement plans and health insurance. Once the net pay amounts were determined, she prepared the paychecks which required two signatures. Then she made the payments for the withholding totals. Finally, at the end of each month, the financial secretary prepared the financial reports. These included monthly totals, year-to-date totals, comparisons to budget and comparisons to the prior year for the same month. In addition to the numerical reports, she provided a thorough narrative of variances Each year the church's financial records were reviewed by an auditor. They were fortunate ugh to have a CPA in the church who provided the audit for free. The financial secretary exactly what the CPA would ask for. She always had all the documents right ready for his review, which made everything neat and easy for him For a number of years, members of the church had come to rely on the competence and integrity the financial secretary. She seemed tireless in her commitment and worked for a salary much Integrated Accounting Principles Fall 2018 Homework Problem -50 points THIS IS A TRUE STORY... The financial secretary had stolen $900,000 from the church over the last 20 years. The tale of embezzlement. How could they not have noticed losses that totaled $900,0002 and lay leaders of the church sat in stunned silence. As they listened, the pastor told thata ? Many of them thought of the times the church had struggled to meet its financial obligations. They thought of the campaigns they had conducted asking faithful church members to give sacrificially Over the next few weeks, the sordid tale began to unfold. The church's primary source of income was contributions through the Sunday offerings. Two deacons were responsible for placing the cash and checks from the offering plates in a zippered bag and putting the bag in the office safe for the financial secretary to count, record and deposit on Monday. The financial secretary kept track of the donations of individual members for tax reporting purposes. She posted the gifts in the ledger, prepared the deposit slip and went to the bank. The financial secretary was also responsible for paying all the bills that came to the church. The administrative assistant opened all the mail. Any bills were forwarded directly to the financial secretary. The financial secretary carefully reviewed the bills to determine if they were appropriate. She maintained a list of "approved" suppliers to help ensure that purchases were made at the lowest price and that members' businesses were patronized when possible. She also determined which area of the church budget to charge for the bill. She recorded the bill in the accounting system, then wrote and signed the check for payment. If the payment exceeded $1,000, an additional signature was required on the check. Monthly, the financial secretary was responsible for preparing the payroll for the church staff. While all ministerial staff were paid a salary, administrative, janitorial and kitchen staff were paid on an hourly basis. The financial secretary went over the weekly time reports, applied the appropriate rate and determined the amount of the gross pay. She then determined the amount for various deductions including income tax withholdings, unemployment tax, retirement plans and health insurance. Once the net pay amounts were determined, she prepared the paychecks which required two signatures. Then she made the payments for the withholding totals. Finally, at the end of each month, the financial secretary prepared the financial reports. These included monthly totals, year-to-date totals, comparisons to budget and comparisons to the prior year for the same month. In addition to the numerical reports, she provided a thorough narrative of variances Each year the church's financial records were reviewed by an auditor. They were fortunate ugh to have a CPA in the church who provided the audit for free. The financial secretary exactly what the CPA would ask for. She always had all the documents right ready for his review, which made everything neat and easy for him For a number of years, members of the church had come to rely on the competence and integrity the financial secretary. She seemed tireless in her commitment and worked for a salary much