Audit Employment Law Compliance and Ministerial Classification
- Review employee classification decisions, including ministerial status under the ministerial exception doctrine and employee-versus-independent-contractor analysis.
- Confirm wage-and-hour compliance, overtime classification, and state leave law adherence.
- Update employee handbooks and written job descriptions to reflect current federal and state labor law requirements.
- Remote employees may create multi-state employment obligations.
Update Child Protection, Mandatory Reporting, and Safety Protocols
Sexual misconduct claims remain one of the most significant sources of church liability exposure:
- Review child abuse prevention policies, and employee and volunteer screening and selection processes, including background checks and reference checks.
- Confirm compliance with state mandatory reporting statutes and training requirements. Evaluate supervision ratios, facility access controls, and incident documentation protocols.
Assess Insurance Coverage and Enterprise Risk Management
- Conduct an annual insurance review covering:
- general liability,
- sexual misconduct liability,
- directors and officers (D&O) liability,
- employment practices liability (EPLI),
- cyber liability, and
- property coverage.
- Evaluate policy limits, exclusions, deductibles, and defense cost structures.
- Consider whether ministry expansion—counseling services, childcare programs, mission travel, or digital ministry—alters risk exposure.
Insurance should align with operational reality.
Review Data Privacy, Cybersecurity, and Technology Governance
Churches routinely collect personally identifiable information (PII), donor financial data, and confidential pastoral counseling records.
- Confirm cybersecurity safeguards, data breach response plans, and vendor agreements for online giving platforms and church management software.
- Develop or update policies governing artificial intelligence tools, automated transcription services, and digital record retention to reduce confidentiality and privacy risks.
Evaluate Financial Controls and Internal Audit Practices
- Review internal controls, such as segregation of duties, dual-signature requirements, expense reimbursement procedures, and restricted fund tracking.
- Conduct an internal financial review or independent audit based on church size, complexity, and donor expectations.
Strong financial controls support transparency, accountability, and integrity in stewardship.
An annual church legal checklist is a governance safeguard.
Proactive review strengthens fiduciary accountability, protects tax-exempt status, reduces regulatory exposure, and reinforces congregational trust.
Church governance is not merely administrative. It is stewardship in action.
