OUTSIDE EXPERTS HCC hires outside accounting experts each year to review its financial statements and systems. HCC also hires independent legal counsel to make sure it is complying with IRS rules and regulations. HCC has just completed it annual IRS compliance review, and passed with flying colors. APPROVAL OF COMPENSATION All salaries and other compensation must be approved by an outside, independent, Compensation Committee, which is not related to any of the officers of the church. OFFERING COUNTING PROCEDURES Offerings are always under lock and key, and are counted only in the presence of several witnesses and observers. No Pastors or paid ministers ever count the offering or have access to it. No one has access to cash. All cash is locked in a safe in the presence of witnesses. Cash is transported by armored vehicle to the bank. Two signatures are required on all checks. Eight elders put offering into locked bag. HERE IS THE OFFICIAL HCC OFFERING COUNTING POLICY AND FINANCIAL SECURITY POLICY: The elders which bring the offering back to the “Safe Room” are rotated, to ensure there is no opportunity for collusion in removing envelopes/funds from the offering before it is placed in the safe. The offerings are counted in a room with the door locked. At least two paid staff members must be in the offering counting room at all times. No bags, purses, jackets, or other personal items are permitted in the counting room. All buckets, envelopes, cash, supplies, etc. must be kept on the table or desk in full view at all times; no items are to be put on the floor or taken outside the counting room while counting is taking place. All counters should be seated around a conference-style table located in the middle of the room. Each counter must sit around the conference table and face each other with hands in full view on the table at all times. A security camera must be turned on before any offering is put on the table. Only after the bags are locked and room emptied should it be turned off. Camera operator, operation, maintenance, and film supplies are to be logged, recorded and stored in a secure area by the security department of the church. Security persons do not under any circumstances assist with the counting of the offerings. A security person should be available outside the counting room’s locked door until the whole process has been completed. Offering counts are verified and cross-verified by staff who are rotated every two weeks. No one person should have the entire combination code; it should be split between two people. One having two numbers with the other knowing the third. These numbers should be changed every three months and the order alternated between the two custodians. A special report book must be kept showing these requirements are in order and signed by the respective parties. The safe combination and the key are separated. The code should be written down on a special lock code form, placed in a sealed envelope with the assignee’s signature covering the seal. These envelopes should be given to the Pastors or Security only for safekeeping and in the event of an emergency the safes could be opened. If such an emergency occurs then the numbers should be changed accordingly. No person who has a key to the door where the safe is located should also have the combination or any part of it for the safe. The same person who has keys to the building and interior doors cannot also access to the safe. Door locks need to be changed regularly in order to meet the above criteria for building, financial, and cash security. ACCOUNTING Fund Accounting is a technical, complex form of nonprofit accounting that requires expertise, education and formal training. HCC uses this form of accounting. Personal expenses are tracked and must be accounted for.