Post on 28-May-2022
ANNUAL Report
We each share a personal commitment to Christian Service!
Our attitude and actions incorporate integrity, respect, professionalism, & efficiency.
Presented at Annual Council 2013Silver Spring, Maryland, USA
TableOfCOnTenTsOur Shared MiSSiOnWe Serve GOd by deliverinG excellent audit ServiceS tO the
Seventh-day adventiSt church!
Our Shared valueSserviCe
We each share a personal commitment to christian service. our attitude and actions incorporate integrity, respect, professionalism, and efficiency. 4
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i aM excellence!
excellence in learninG
excellence in livinG
Our reSpOnSibility
WOrk plan reSultS
Our reSOurceS
Our audit prOceSS
typeS Of repOrtS
analySiS Of repOrtS
eMerGinG iSSueS
We each eMbrace theSe valueS enablinG uS tO deliver excellence!
• Weareguidedbymoralandethicalprincipleswhicharereflectedinourconduct.
• WerespectGodbyhumblydedicatingourselvestoHim
• We respect our clients by valuing their opinions, understanding their needs,andsupportingtheirmission.
• Werespectourcolleaguesbyvaluingtheircontributions,understandingtheirneeds,andsupportingtheirprofessionalgrowth.
• Werespectourprofessionbyapplyingitsstandardsandbestpractices.
• Wedemonstrateacultureofhelpfulnessandcourtesybyourattitude.
• We develop our core competencies through a commitment to continuouslearningandobtainingthehighestlevelofprofessionalqualifications.
• We design our system of quality control to ensure our work complies withprofessionalstandards.
• Wedeterminetocommunicatevaluableinformationinaneffectivemanner.
• We are committed to conserving church resources by providing the highestqualityauditsatthebesteconomicalvalue.
inTegriTy
respeCT
prOfessiOnalism
effiCienCy
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With this simple statement we havecrystallized how we learn and how welive. We believe that in our service toGod He demands our excellence; andinservicetoourclientstheydeserveourexcellence!
GCAS hasmade significant investmentsin providing learning opportunities forevery job level. Our learning programis centeredondeveloping a set of corecompetencies with a view of realizingexpectedoutcomes.Thesecompetenciesare a set of skills that create value inour colleagues and for our clients.Enhancingthesecompetencies iskey toourdeliveringexcellentservice.
Beyond serving the Church in aprofessionalcapacity,weencourageourcolleaguestoengageinpersonalministrywith their local churchandcommunity.Being the hands and feet of Christ is arewardingaspectofliving!Inconnectionwithour learning seminarswe setasidetime to be involved in communityactivities.
Aswelearnandlive,GCASisproudtoparticipate in the financial reportingprocess by providing excellent auditservices to the Seventh-day AdventistChurch.NowthatanewGCASFundingArrangement has been finalized withthe General Conference and WorldDivisions,wewillbeinabetterpositiontoaddressthecompleteportfolioofourresponsibility.
Our 2012 Annual Report provides aninsight on our professional activitiesby presenting the summarized resultsof audit engagements performed fromoffice locations around the world.These results were provided in detailtoChurchleadersandtheirconstituentstakeholders as part of administeringtheirrespectiveorganizations.
A special thank you is extended toour approximately 250 professionalsoperating from offices in 45 differentcountries who make DeliveringExcellenceoursignatureeveryday!
i am excellence!
Paul H. Douglas (Director) and Jack Krogstad (Board Chair) presenting
their respective Keynote and Welcome addresses during
CONNECT2013 in Riviera Maya, Mexico
OUR LOGO was created as a reflection of both the mission
and core values of GCAS.
The circular shape in the foreground, containing four
converging “hands” of varying colors, is a representation of the
convergence of four of GCAS’s core values - integrity, respect,
professionalism, and efficiency - into the singular value of service.
The circular shape is also a representation of the fact that
these values converge in the context of global service. The curving line that originates at
the GCAS initials and transitions to the circular shape in the
foreground represents the GCAS mission of delivering excellence
to the world church.
By Bbending excellence in learning
with excellence in living
we become People of Excellence
Daily demonstrating Christ in our professional
and personal service
Excellence is what we do!
Excellence is who we are!
Excellence is everything!
All because of Whom we serve!
6 | 7 |In My learning And In My Living - I Am Excellence!
By blending excellence in Learning...
• Orientation • Live Seminars • On-the-job
Training
Onboarding
• Self-Study • Webinars
Professional Examination • Live Seminars
• Webinars • Self-Study
Core Competencies
• Learning Modules
• Graduate Study
Specialization
excellence in learninG
Our Learning Model
GCAS values each of its professionalsandiscommittedtoprovidingarobustprofessional development programduringtheirtenure.Oursharedvaluesguide us to respect our colleaguesby valuing their contributions,understanding their needs, andsupporting their professional growth.Further, our shared values guide us todevelopthecorecompetencies**ofourcolleaguesbyprovidingopportunitiesforcontinuouslearningandsupportingtheattainment of the highest professionalqualifications. We believe that ourprofessional developmentprogramisintegraltoourbeingabletodeliverexcellent auditservices to theSeventh-dayA d v e n t i s tChurch.
The learning components of ourprofessional development programare designed to ensure that all of ourcolleagues possess competencies thatmake themwell rounded professionalsandpromotecontinuouslearning.
Our Learning Modes
GCAS delivers learning opportunitiesusing different modes such as liveseminars,webinars, self-study, and on-the-jobtraining.ThesemodescaneitherbeadministeredbyGCASfromitslibrary
of internally developed programsorfromenrollmentincoursesadministered by accreditedlearningorganizations.
EveryfiveyearsallGCASprofessionalsgatherfora global CONNECTc o n f e r e n c ewhich providesopportunity forcapstonelearning,strategic focus,andcollaborative
engagement.Themostrecent CONNECT took
placeinJanuary2013andthenextisscheduledforJanuary2018.
Between these quinquennial events,scheduled learning opportunitiesare designed to build and enhancethe five GCAS core competencies.Key components of these learningopportunitiesaretheseminarsscheduledby each GCAS geographicArea during the five-yearperiod.
The learning plan for each GCASprofessional follows a timeline thatmatchesourlearningexpectationswiththeir length of experience. Individualprofessional development plansare tailored to build individual jobcompetenciesateachprofessionallevel.The timeline focuses on four key areasforwhichlearningisdeliveredusingtheappropriatemode.
GCAS has been a NASBA CPE Sponsorsince 2005. NASBA is the NationalAssociation of State Boards ofAccountancy and together with theAICPAestablishesCPEStandardsforCPAs.
8 | 9 |In My learning And In My Living - I Am Excellence!
Service | inteGrity | reSpect | prOfeSSiOnaliSM | efficiency
CONNECT2013 Riviera Maya, Mexico
North America AreaTennessee, USA
Trans Africa AreaBloemfontein, South Africa
Trans America AreaFlorida, USA
Trans Asia Pacific AreaYu Chih,Taiwan
Trans Euro AreaHosur, India
eachyear. Forthosewhoarestudyingfor a professional examination orenrolled in a graduate study course,they are considered to havemet theirCPErequirementfortheyear.
Inaddition,eachprofessionalisexpectedto meet the CPE requirements in thejurisdictionoftheirspecificcertificationand/or licensure, as well as any CPErequirementsforspecializationssuchasCertifiedFraudExaminer(CFE)orTrustAuditor.
GCAS learning expectations includeCPE topic selection of relevance tothe auditors’ work location and clientbase. Learning expectations arecommunicatedaspartoftheonboardingprocessandarean integralpartof thepersonal professional developmentplancollaborativelydevelopedbetweenthe employee and regional manager.These plans are then reviewed as partof the annual employee performanceevaluation.
GCAS’ CPE requirement matches thehighest standards of the accountingprofession and is consistentwithwhatis needed to maintain licensure andremainontheleadingedgeofwhattheprofessiondemands.
Delivering excellent audit services tothe Seventh-day Adventist Church isdependentoneachGCASprofessionalpossessing the requisite competenciesto perform at the highest professionalstandards.
Qualifying organizations may applyto NASBA to become sponsors andare required to go through a rigorousevaluationprocesstoachievesponsorshipstatus. This NASBA CPE sponsordesignation allows the organizationto issue CPE certificates for continuingeducation programs. GCAS hasbeen authorized to provide CPE viathe live seminar delivery method, andmoving forward GCAS is applying forauthorization to add two additionaldelivery methods, group internet-based(GIB)andself-study (SS). Theseadditionaldeliverymethodswillfacilitatewider distribution and participationof the global GCAS community.
As a global community, GCASprofessionals hold various professionalaccounting certifications includingCertified Public Accountant (CPA),Chartered Accountant (CA), or ACCA(AssociationofCertifiedandCharteredAccountants)designations.GCASasanemployer is currently working towardsecuring the designation of an ACCAApprovedEmployer,whichwillfacilitateand streamline the ACCA certificationprocess.
Our Learning Metric
GCAS requires all of its professionalsto complete at least 120 hours ofcontinuingprofessionaleducation(CPE)every three years, and to complete aminimum of at least 20 hours of CPE
**
Able to utilize and leverage available technologies to complement audit
strategies, communicate with clients, and collaborate with colleagues
Client Satisfaction
Strategic & Critical Thinking
Accounting & Auditing
Technology
Able to give and exchange meaningful information with appropriate delivery and interpersonal skills. Able to influence and
inspire others to achieve results.
Able to anticipate and meet the changing and competing needs of our clients.
Able to link data, knowledge, and insight together to provide quality advice for
strategic decision-making.
Able to understand and apply relevant accounting standards. Able to design and
implement responsive audit strategies.
Expected OutcomesCore Competencies
Communication & Leadership
10 | 11 |In My learning And In My Living - I Am Excellence!
...with excellence in Living...
Want to receive these devotionals? Let us know at www.gcasconnect.org
The children at Sunshine consider each other as brother and sister!
excellence in livinG
GCAS understands the importance of excellence in every aspect of life. Weencourage our family to exemplifyexcellence in their living. How dowe corporately model this behavior?ThroughexCellenCeCOnneCTs,acorporateinitiative to nourish the spirit throughdevotion andprayer. The topof eachweek begins with a devotional andallows time for eachmember to stop,meditate,andpray. It isourhope thatthis inspires, throughthepowerof theHolySpirit,continualpracticeeachandeveryday.
As each embraces the power of theHoly Spirit, they are empowered toexemplify excellence in their livingthrough service. exCellenCeserves isdemonstrated through our membersserving their local congregations aselders,treasurers,deacons,deaconesses,and teachers. You may find themhelping their local church by workingonalambshelterandchurchbuildings,
mowingthegrass,orparticipatingasaguestspeakerforthechildren’sprogramatcampmeeting.ExcEllEncESErvES!alsogoes beyond the local congregation,many individuals have participated invariousmissionprojectssuchasbuildingachurchandinstallingwaterpumpsinPanama, evangelistic series presentedin the Philippines, church renovationsplus VBS for the village children inCatanduanes, and providing suppliesfororphanchildrenandpoorfamiliesatNakivalerefugeecampinUganda.
Corporately we also want to modelhow ExcEllEncESErvES! In January 2011,while attending the Trans Euro AsiaAreameetingsheldinBangalore,India,a group went to visit the Sunshine Children’s Home and School, anorphanage (today cares for over 100children) founded by Dorothy Wattsin1979,andactuallybeganoutoftheWatt’shome.
During our visit, we enjoyed musicperformedbythechildren,freshcoconutwater and wonderful conversation. Atour of the grounds provided a lookinto their daily activities and as such,many were touched by the wonderful
guidance that Beulah Fernandez, theSunshine Director, and other staffeffortlessly provide. As a result, anofferingwascollectedand thegiftwaspresentedtotheorphanage.
However, this is not the end of thestory.Duringthefollowingyears,manyof the attendees continued to supportthe orphanage through donations andsharing their experience with those,theycameincontact.InJanuary,duringCONNECT2013, GCAS corporatelyadoptedtheSunshineChildren’sHomeandSchoolasitsmissionproject.
Through the Sabbath offering andpledges the total amount collectedand sent was USD9,625 (Rs 584,943).Withthefunds,theSunshineChildren’sHomeandSchoolwillbeabletobenefitfromthepurchaseofsolarwaterheatersforthechildrenandatillerwithatrailertocultivatethe land. Inaddition,theywill be able to purchase enough painttocoveralltheresidentialbuildings,andenough supplies to repair all the leakyroofs.ComeJanuary2014,wewillselecta new mission project in a differentdivision and continue to minister andservewithexcellence.
Sung Hyo, Kim | Audit SeniorTrans Asia Pacific Area
Mission Trip to Elido, Philippine with the Saman Church in Korea.
“Along with my daughter, I had the opportunity to remember our
mission and service to others while we helped build the church and hold
evangelistic meetings.” Diane Baier | Administrative Assistant
North America AreaMission Trip to Panamá with
Chesapeake Conference“One of the important things I
learned was that even when we go out to do God’s work, we sometimes bring our own agendas and we have to let go of them and see God work.”
ExcellenceServes through Missions:
Annie Machamire | Audit Staff Trans Africa Area
Mission Trip to Zimbabwe with family.“There is no greater joy then to share
Christ with children and see them eager to learn and remember Bible verses.
12 | 13 |In My learning And In My Living - I Am Excellence!
Client Base—The General Conference Auditing ServiceshallbetheSeventh-dayAdventistChurch’spreferredproviderofauditingorfinancialreviewservices.The client base includes all denominational organizations such as GeneralConference institutions,world divisions and their institutions, unions/unions ofchurchesandtheirinstitutions,localconferences/missionsandtheireducationalinstitutions at the secondary level or higher, and Adventist Development andReliefAgencycountryofficesandprojectsnotauditedbyexternalauditors.
General Conference Working Policy SA 05 25
Our reSpOnSibility
Daily demonstrating Christ...
WOrk plan reSultS
Total Audits Audits Audits Assets Assets RevenuesType of Entities Portolio Completed In Progress Postponed Not Attempted Audited AuditedDivisions 13 13 758,000,000 315,000,000 Unions 121 94 9 18 1,287,000,000 416,000,000 Conferences/Missions 613 401 74 8 130 4,308,000,000 1,804,000,000 Educational Institutions 764 370 46 7 341 3,175,000,000 2,314,000,000 Healthcare Institutions 187 77 25 2 83 620,000,000 581,000,000 Publishing Houses/ABCs 225 123 27 2 73 370,000,000 170,000,000 ADRA 108 45 11 9 43 60,000,000 65,000,000 Trust 70 18 15 37Other 336 206 33 6 91 3,740,000,000 1,117,000,000
2437 1347 240 34 816 14,318,000,000 6,782,000,000
Analysis of Audits Work Plan Results
14 | 15 |In My learning And In My Living - I Am Excellence!
...we become People of Excellence!
Kirsten DunlopAustralia
Mo LealUnited States
Paul KluganGhana
Pinky Joy Jago-onPhilippines
Our reSOurceS
The engine for delivering excellenceisfueledbytherevenuewereceivefrombillingourservicestoclientsinNorthAmericaDivisonandtheallocationfromtheGeneralConferenceWorldBudgetforourservicestoclientsintheremainingworlddivisions.
We provide these services with a highly qualified team which is diverse in itscompostionanddedicatedtothecommitmentofobtainingthehighestprofessionalqualifications.
Our qualified team consists of 26% femalesand74% males.
Within this group62%areprofessionallycertified,and38% areworkingtowardscertification.
gCasBy the NumBersFunding Arrangement
2000Year GCAS organized as a global organization with funding based on a one-time reduction in appropriation to Divisions and GC assumes all audit costs.
62% Average number of audits completed based on a staffing level.
2014Year Cost Sharing plan between GC and Divisions for audit costs will begin.
80% Subsidy for audit costs of conference type of entities.
20% GC subsidy of audit costs of owned and operated type entities.
6.78% Annual World budget allocated to GCAS.
3The initial Memorandaum Of Understanding (MOU) signed between GC and Divisions will be for the period of three years.
63Number of new auditors needed worldwide based on a new financial agreement.
$6.6 Million Amount by which GCAS was underfounded and is now addressed by cost sharing plan.
16 | 17 |In My learning And In My Living - I Am Excellence!
typeS Of repOrtS
...in our Professional and Personal service!
Our audit prOceSS
Developandagreeonwrittentermsofengagementwiththeclient
Obtaininformationaboutclient’saccountingandfinancialreportingsystem
Designandperformauditproceduresbasedonassessedriskofmaterialmisstatement
Assesstheriskofmaterialmisstatement,whetherduetoerrororfraud
Analyzeresults,drawconclusions,andformanopinionaboutthefinancialstatement
Prepareandissueauditopinionandothercommunicationstoprescribedrecipients
AGREE
REPORT
CONCLUDE
ASSESS
PERFORM
OBTAIN
Standard/Unqualified
Theauditorconcludesthattheoverallfinancialstatementsarefairlypresented.
Qualified
Theauditorconcludesthattheoverallfinancialstatementsarefairlypresented,but the scope of the audit has been materially restricted or accountingreportingstandardswerenotfollowedinpreparingthefinancialstatements.
Adverse
Theauditorconcludesthatthefinancialstatementsarenotfairlypresented.
Disclaimer
Theauditorconcludesthatheorsheisunabletoformanopinionastowhetherthefinancialstatementsarefairlypresented,orheorsheisnotindependent.
Opinions
Policy Compliance
Standard/Unqualified
The policy compliance report does not mention any instances of non-compliancewithdenominationalpolicy.
Qualified
The policy compliance reportdoes mention instances of non-compliancewithdenominationalpolicy.
18 | 19 |In My learning And In My Living - I Am Excellence!
Policy Compliance Reports Issued
analySiS Of repOrtS
Types of Opinions Rendered
Total Assets Audited: $14,318,000,000
Total Revenue Audited: $6,782,000,000
MOSt frequent reaSOnS fOr a qualified OpiniOn:
• Notrecordingrealpropertybyproperorganization
• Impropervaluationofinvestments
• Stateoftheaccountingrecords
• Lackofevidencetosupportinventorybalances
• Unabletoverifyoutstandingitemsonaccountreconciliations
• Notdiscountinginterest-freeaccountsreceivablefromrelatedentities
• Unabletoobtainsufficientauditevidence
MOSt frequent WOrkinG pOlicy viOlatiOnS:
• Failuretoclassifyinvestmentassetsbasedonatimehorizon
• NotprovidingmonthlyFStogoverningboard
• MissingConflictofInterestStatements
• Employeeservicerecordsnotupdatedandsigned
• MissingorimproperlyconstitutedAuditCommittee
• Notperformingassetallocationstudyofinvestments
• Nottakinginsurancecoverageondenominationalproperties
• Inadequatesegregationofduties• Lackofauthorizationfortransactions• Lackofevaluationofallowanceofuncollectibleaccountsreceivable• Inadequatebackupdocumentationonexpensereport• Bankand/orinter-organizationalaccountsnotreconciled
• Impropercomputationoffairvalueofinvestments• LackofBoardauthorizationforopeningbankaccounts• Nophysicalinventorycount• Managementoverrideofinternalcontrols• Lackofapprovalofjournalvouchersbyresponsibleofficial
Most Frequent Internal Control Deficiencies:
Excellence is everything...
20 | 21 |In My learning And In My Living - I Am Excellence!
Excellence is what we do!
Excellence is who we are!
eMerGinG iSSueS 2012
GCAS Board Meeting during Annual Council 2011
GCAS Board members; Svetlana Kara (Euro-Asia Division), Evelyn Will (South Pacific
Division), Phillip Ndlovu (Southern Africa-Indian Ocean Division)
Professional Standards
Accounting for Leases
TheInternationalAccountingStandardsBoard (IASB) has issued an exposuredraftoutliningproposedchangestotheaccounting for leases. Under existingstandards, amajority of leases are notreported on a lessee’s balance sheet.The new proposal would require alesseetorecognizeassetsand liabilitiesfortherightsandobligationscreatedbyleasesofmorethan12months,therebycausingmostleasestobereportedonalessee’sbalancesheet.
Auditor’s Report
TheInternationalAuditingandAssuranceStandards Board (IAASB) has issued anexposure draft of proposed changesin the content of the auditor’s reporton financial statements, in an effort toimprovethatreport.Theproposalwouldrequire certain additional informationto be included in the auditor’s report.Thisincludesthereportingofthemostsignificantmatters during the audit to
be reported as “key audit matters,”the appropriateness of management’suse of the going concern basis ofaccounting, improved description ofthe responsibilities of the auditor, andthe name of the engagement partner.It isanticipatedthatthesechangeswillpositivelybenefitthequalityoffinancialstatement audits andusers’perceptionoftheaudits.
Disclosures about RisksBenefit Plans
International Financial ReportingStandards (IFRS) has expandeddisclosures requirements for employeebenefitplans to includemanagement’sconclusionsabout risks associatedwithparticipation inmulti-employer benefitplans, including the risk of liabilityfor contributions to cover benefitsfor employees of other participatingemployersinthegroup.
Denominational Requirements
Investments
At the end of 2012, the ExecutiveCommittee of the General ConferenceofSeventh-dayAdventistamended thedenomination’s investment policy torequire all affiliated organizations toengage theservicesofan independentcertifiedmanagementconsultanttoassistin thedevelopmentandmonitoringoftheinvestmentstrategies.Anadditionalamendment to this investment policywastorequireallinvestmentmanagersto meet high professional criteria,including an absence of a conflict ofinterest. These new requirements arestillbeingimplemented.
Financial Reporting
TheGeneralConferencereviseditspolicesto incorporatebestpractices relatedtothe receipt, response and resolutionofissuesidentifiedinauditreportsprovidedbyGCAS or by an external audit firm.Thisrevisionmadetopolicyisintendedto develop a common expectationof transparency and accountabilityfor all denominational organizations.Included in the revised policies areexpectations for each organization tohaveitsfinancialrecordscompletednolater than90daysafter thecloseof itsfiscalyear-end;havetheauditorissueafinal reportno later than60daysafterthe close of audit engagement; andhave each organization establish anaudit committee that is comprised ofmembersnotinitsemployment.
22 | 23 |In My learning And In My Living - I Am Excellence!
All because of Whom we serve!
CONNECT2013bOard MeMberS 2010 - 2015
NADLayRepresentative,Chair|Jack L Krogstad,PhDCPA
GCVicePresident,Vice Chair|Lowell C Cooper,MDivMPH
GCASDirector,Secretary|Paul H Douglas,MBACPA
GCPresident|Ted N C Wilson,PhD
GCSecretary|GT Ng,PhD
GCTreasurer|Robert E Lemon,MBA
ECDLayRepresentative|Vincent Zirimwabagabo,BCom
ESDLayRepresentative|Svetlana Kara,CCIM
EUDLayRepresentative|Elvira Grosu,ACCA
IADLayRepresentative|Hyden Gittens,M.ScCPA
NSDLayRepresentative|Yungsang Oh,M.ScCPA
SADLayRepresentative|Ailton Dorl,MBA
SIDLayRepresentative|Phillip Ndlovu,B.ScCA
SPDLayRepresentative|Evelyn Will,BA
SSDLayRepresentative|Lotie Ragas,MPACPA
SUDLayRepresentative|John Stanley,PhD
TEDLayRepresentative|Frensly Panneflek,MBAM.Sc
WADLayRepresentative|Philip Maitanmi,CA
leaderShip teaM
Director|Paul H Douglas,MBACPA
HQEngagements|John H Adu,MBACPACA
Employment&Budget|Linda E Fredlund,CAP-OMGPHR
Communication&Scorecard|Ludmila G Leito,BABS
ProcessImprovement|Jeremy T Smith,BACPA
ProfessionalDevelopment|Maurine Wahlen,MBACPA
ProfessionalStandards| Daniel E Herzel,BACPA
AuditMethodology|James E Trude,BSCPA
QualityControl|Kimberly Westfall,BBACPA
Opinions|Paul W Johnson,BSCPACFE
Technology|Gary B Blood,BSMCP
Area Offices
NorthAmerica|Robyn W Kajiura,BBACPA
TransAfrica|Furaha Mpozembizi,BComCAACCA
TransAmerica|Rogelio Cortez,BBACPA
TransAsiaPacific|Paul J Edwards,BBACPAACCA
TransEuroAsia|Sandra C Grice,MBACPAFCCA