Feature length cartoon up – discussion of bank reconciliations and offering count in a local church

Some short scenes have been combined into a 9 minute cartoon along with an intro and extro. The first of several feature-length cartoons is available on my other blog, Once Upon Internal Control. This one discusses some creative internal controls over cash and a few ideas on how to maintain security over the offering until it is counted by the count team. More to follow!

Cartoon can be found at:

Once Upon Internal Control – part 1

 

Jim Ulvog

Radical cost reductions in technology – illustration from external hard drives

Storage costs are about zero.

Got to thinking about the cost of storing data on external hard drives. Did a few calculations to look at the radical change in costs over the last few years. Used my actual purchases and listings today at Amazon. Wow.

Here are the costs per gigabyte of storage for the newer portable hard drive (2 of ‘em are about the size of a paperback book) and for the larger externally powered ones (more the size of a thick hardback): (more…)

Jim Ulvog

Conclusion to the tale of Southside Community Church – cartoon #4 posted

 Posted at Once Upon Internal Control: The exit interview with the reporter who was investigating reports of extravagant spending. Final cartoon in the tale of the church that did internal controls well can be found here.

All four cartoons plus the intro will be rolled into a feature cartoon.

Jim Ulvog

Extension of deadline for California firms whose first Peer Review report is due July 1, 2011

(cross-post from my other blog, Attestation Update)

Extensions available!!!

Just a reminder, California now has mandatory peer review.  First deadline is rapidly approaching for firms whose first peer review is due July 1, 2011.  This would be CPAs whose licenses end in 01 through 33. 

The Cal Society has a memo on their website allowing extensions.

See announcement here.

To get an extension, a firm must: (more…)

Jim Ulvog

Great illustration of outcomes versus outputs

Here is a superb illustration of outcomes measurement from audio recording of Nathan Adam’s presentation at the 2011 Christian Leadership Alliance conference in Dallas:

Recidivism rate of faith-based prisons was a small fraction of the state prisons.

When he worked in the Florida state government, there were three faith-based prisons in the state. Their recidivism rate was 1/16th the rate of the state prison.

(more…)

Jim Ulvog

Dear Veterans: I accepted a ‘thank you’ on your behalf

Two weeks ago I attended an old west re-enactment in a city near my home. Between skits, one of the re-enactors noticed I was wearing a hat that said “USS Midway,” which is a carrier that was in service from the end of WWII to 1991. It is now a museum in San Diego.

He asked if I was a veteran. Didn’t understand his interruption at first.  As I asked him to repeat himself, I remembered the hat I was wearing.

“Are you a veteran?”

(more…)

Jim Ulvog

Essentials of Internal Control – full article

Here is the full text of my article, Essentials of Internal Control, appearing in Church Management News from Bank of the West.  The online article is here.

The article discusses three key ideas:

  • The bookkeeper should not sign checks
  • Trust is NOT an internal control
  • Review unopened bank statement by someone outside of accounting

Essentials of Internal Control

By James L. Ulvog, CPA

The business administrator of a nearby church has been formally charged with embezzling close to $1 million over four years, according to a recent newspaper article. Few details are publicly available. I have friends who worship there, so this hits close to home. I grieve for my friends, the congregation, believers whose faith has been shaken, and even the accused man and his family.

Last year, the bookkeeper of a women’s shelter in my area was sentenced to one year in prison for embezzlement. The executive director of the center was quoted in a newspaper article as saying the shelter had to sell one of their several houses in order to keep operating. The director said eighty women and their children were denied services.

I was going to start this article with a rational appeal to logic as the way to encourage more emphasis on internal controls in our churches. Instead, I would like you to ponder the devastation that follows in the wake of a disaster that can arise from a breakdown in internal controls. The previous reports are only two examples. One of the main goals of developing internal control is to prevent these situations. I could tell you of many more tragedies. A few moments of searching the internet will find dozens of stories.

(more…)

Jim Ulvog

Cartoon posted to illustrate good controls protect the innocent from false accusations

I have a new cartoon posted at Once Upon Internal Control showing good internal controls in a local church. The dramatization is based on a reporter calling for comment about rumors of a high-flying lifestyle.

Cartoon called: When a reporter calls, good procedures save the day. Visit the other blog for the cartoon. I will be posting cartoons there.

Jim Ulvog

Does it feel like the recession is over? Here’s a graph to show why you said no

The recession officially ended in June 2009. Broad economic stats confirm that.

And yet…

Does it feel that way to you?

Me neither.

The employment data is making it feel like the economy is still in a lot of distress. Here is a graph that, I think, shows why I’m sensing some distress.

(more…)

Jim Ulvog

Essentials of Internal Control – article for Bank of the West newsletter

I wrote an article for Bank of the West called Essentials of Internal Control.  It discusses one superb internal control you should be using for cash, explains that trust is not an internal control, and offers a creative idea to improve control over cash.

A one sentence summary of internal control is at the end of this paragraph:

(more…)

Jim Ulvog