Insurance Evaluations/Exams     ZZall 0073-02

                                                               - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

                 TO:  Interested Ministries                                                                                                                           FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                                                            FILE:  0073-02/all

                  RE:  Insurance Evaluations/Exams                                                                                                         Originated:  September 2000                                         

        Below is a transcript of another hypothetical Online conversation, or THRD WRITING, between  Jim@bcidot.org   and members of a M)inistry F)inance Team - MFTeam: the MFTeam members are PAT .. the Ministry Executive, LEE .. the Volunteer Board Treasurer, and FRAN .. the Ministry Computer Bookkeeper.   Click here and go to List of threads (THRDs) at www.bcidot.org

FR: LEE

    When your CPA-Audit firm did our annual opinion audits, you asked us to process the "Insurance Confirmation" per the Inter-Office Memo  form below. 

========================================================================     
                                    I N T E R – O F F I C E   ME M O R A N D U M ========================================================================= 

To:   Client’s Insurance Representative                              RE: Insurance Confirmation re:
Fr:  ____________________________                                   Client: ______________________
               CPA - Auditor
Year Ending ________________________________               Authorized by: ________________        

     This firm Is engaged in a routine examination of this client’s records
and they are mailing this directly to you in one of their own envelopes
at our request.  Please complete and return to us via the enclosed self
addressed return envelope.
     As indicated above, they have authorized you to please provide
the information below:

    Insurance Company                                                                       Approx Annual 
    & Policy Number                 Coverage                      From/To             Premium 

1>__________________  ______________  ____________  _______________
2>__________________  ______________  ____________  _______________
3> _________________   ______________ ____________  _______________ 
4> _________________   ______________ ____________  _______________
5> _________________   __________________________  _______________ 

    Do you have a record of Robbery and/or Fidelity Bond Coverage 
                           YES ____ NO ___
    In your opinion, does the client have, to your knowledge, all  of the necessary insurance coverage?     
                            ES____  NO ___    

    Please Explain:  _____________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________ 

Your complete name and address below, please
______________________________________________________________________
______________________________________________________________________             by:   ___________________________

FR:   Jim@bcidot.org 

    Yes, in our audit attempt to discover if the Ministry had financial risks, we would send this out and ask your insurance agents for their record of your current coverage.
    You will especially note that we also asked if they felt the Ministry needed either coverage somewhere else or a larger amount of current coverage.

FR: LEE

    Our present CPA-Auditor does not do this, and it seems that we should ask these kind of questions ourselves.

FR: JIM

    Seems like a good idea to me as it seems appropriate for the Ministry to have an INSURANCE EVALUATION, or EXAM every couple of years or so, not only by your current insurance agent but obtain a second opinion.

FR:  LEE

    Seems we also have exposure in our medical insurance and related issues in/around our staff ..... should this EXAM include these type of things?

FR: JIM

    I would not commingle the two ----- such matters are largely a staff benefit and the Ministry itself is not necessarily at risk. I would concentrate on coverage of assets and known or contingent liabilities like:

  •   Fire Insurance - On tangible holdings of Land, Buildings and Equipments protection and/or related lawsuits..
  •   Liability Insurance - exposure to lawsuits, etc.
  •   Embezzlement or stealing - bonds - in order to cover exposure from both internal and external sources.
  •   Applicable Board member protection.

    As mentioned above, I would get at least two opinions and ask them about comparative coverage for Ministries like yours, etc.

FR: LEE

    Jim, do you have any links to Online insurance resources.  I know you are not necessarily recommending them, but share what you have please.

        FR: JIM
                Among the many 'out there', I trust you find this link content helpful.  http://www.insure.com

FR:  LEE

    Thanx, Jim ...... will take up with our Ministry Finance Team.

    References to "Insurance" on this web site include the following:

    RE: Ministry Finance Team: 0000; Financial Policies: 8502; 7003; 5005; 0029;Fiscal EXAM: 0025; Fixed Assets: 0033; Tasks: 0074; Truisms: 0069; Investment: 0044, 0043; Grade Report: 0128 . 

    The bulk of this Publication originated in September 2000  and was  UPTD: May 03, 2008  

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        (1) An Onliner Document, or  WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
        (2) WRIT formats include the perspective of   Jim@bcidot.org   via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and via FAQ, response to Frequently Asked Questions