Divisional: Finance
Health and Value:
- Finance supports the YL MMVN value of Stewardship - Observing the highest standards of stewardship of all the resources placed in our trust.
- Finance facilitates strategy, planning, performance monitoring, cost control, risk management, stakeholder communication, and compliance/reporting.
- A healthy finance function operates with approaches to all of the above with a “kingdom mindset”, following the footsteps and teaching of Jesus.
Healthy Financial Systems to Reach the Next Kid
Lesson Objectives
Through this lesson, you will be able to:
- Explain the biblical foundations for healthy financial systems.
- Describe how healthy financial systems help teams reach the next kid
- Analyze their financial systems in their own geography to identify strengths and points that might need to change.
INTRODUCTION
Let's start with a short self-reflection: In a word, how do you feel when you hear the word ‘finance’ in ministry?”
Your answer could be a wide range of responses - from “straightforward” to “challenging” to “confusing.” We all come in with different thoughts and feelings, but through these lessons, we hope that we will move toward clarity and simplicity.
The International Finance Team has put together the Christian Stewardship Training for not only the i100 participants to complete and learn from, but for anyone else in the mission who might need to learn these same principles.
Please complete the training below. When you have finished, return to this page to page for reflection
REFLECTION
Now that you have completed the International Stewardship Training above, reflect on the following questions
- Is there anyone else on your team that you think needs to complete this training?
- When you think about this training, who (not just names, but positions, Area Directors, volunteers, etc) and when (at what time in their Young Life journey) should someone complete this training?
Being Audit-Ready: Integrity in Action
Lesson Objectives
By the end of this lesson, participants will be able to:
- Recognize the purpose and value of internal and external audits in ministry.
- Understand how to be prepared for an audit—before it happens.
- Identify areas of improvement and training needs within their teams to stay audit-ready.
Materials Needed
- Two short case studies (one for internal, one for external audit scenarios)
- Audit Teaching Video
- Audit preparedness checklist
- Material presented on i100 Website
Lesson Outline
1.) Welcome and Warm Up (5 Minutes)
- Prompt: “What comes to mind when you hear the word ‘audit’?”
- Capture answers (in the meeting chat) – highlight both fear and opportunity.
- Transition: “Let’s explore why audits aren’t just about checking boxes—they help us build trust and steward well.”
2.) Case Study Exploration (30 Minutes)
Case Study 1: Internal Audit (15 minutes)
Internal Audit provides a full preplist to the country of items needed for the audit as part of the audit scope. Our standard international audit plan is used during fieldwork, which covers major control areas including Banking, cash management, supporting documents for expenses, employee records, assets, and camp operations. An audit does not include reviewing records and documentation for all transactions of a given time period, but instead, a sample.
Internal Audit hasn’t done unexpected visits. They are generally planned ahead with a preplist provided from internal audit to the country admin/finance staff to prepare specifically requested items. However, even with this, we have experience/examples where countries were not prepared.
- Scenario 1: Internal Audit staff performed a remote audit of an entity in Latin America during COVID (travel was not allowed). This was the first audit of this YL Entity. As per the audit standard practice, a scope/timeframe was selected for the audit, and a preplist was sent to the country. As fieldwork began, it was clear the country was not prepared. Zoom calls were held between the audit team and country staff, but many requested items were either unavailable or just did not exist. As the audit team investigated further, it was clear that accounting/bookkeeping was months, and for some accounts, years behind. No bank accounts (of which the country had multiple) had been reconciled in well over a year, and nearly no sampled transactions had copies of supporting documentation available. Internal audit began sharing these results and concerns with divisional leadership, and everyone agreed it was time to hire additional staff in the country to clean up the accounting records and begin accounting for financial transactions in a timely manner. Ultimately, the country effectively “Failed” the audit. However, with the results reported, the country leadership and division leadership were willing to make necessary changes.
Small Group Discussion
- What went wrong here?
- What could have been done to prevent it?
- How should the team respond?
Case Study 2: External Audit (15 minutes)
- Scenario 2: We were undergoing an external audit and in general, all things were looking good. The country had a high level of vendor concentration. Meaning, the majority of camp expenses were being paid to a small number of vendors (3 vendors actually). Over $500,000 for the year under audit. As the external auditors investigated further, their concern was that although the country had invoices/receipts to support the expenses, there was no additional evidence available to support the true existence of the camps. Did the camps happen? We hope so, but other than really expensive invoices, we don’t have any way to prove it. The field leadership submits statistics, but it wouldn’t be impossible to fabricate those numbers. In this case, the auditors were unwilling to pass us on the audit given the amount camping expenses represent in the finances of that country.
Small Group Discussion
- This scenario is not uncommon around the world, especially in more remote, cash based cultures. As a group brainstorm what ways the country could better support the existence of camp and/or ministry activities.
Large Group Debrief (5 minutes)
- Highlight lessons about documentation, accountability, and proactiveness.
3.) Teaching Segment: What is an Audit? (5-10 Minutes)
Turn subtitles on and off by click the "cc" button. Select a different subtitle language using the gear icon.
Definitions
- Internal Audit – a self-check to ensure internal controls and policies are being followed.
- External Audit – an objective evaluation by an outside entity (e.g., HQ, donors, government).
- Audits are tools for strengthening trust, not punishment.
- Audit themes: transparency, stewardship, accountability, mission alignment
4.) Reflection activity: Are we ready? (10 Minutes)
Audits and preparation for audits help establish healthy systems and accountability for Young Life leaders. The systems that get put into place are meant to help leaders be healthy and focus on ministry. Built-in accountability makes it easy to tell the truth and hard to tell lies to prevent even the temptation of corruption.
Below are two resources you can use with your teams to check your systems in place:
Fraud Prevention Checklist
This list is taken from the ACFE 2024 Report to the Nations. This list can be helpful to review with your team to see if you have healthy systems in place to prevent fraud:
5.) Call to action: Team Discussion Planning (10-15 Minutes)
PROMPT
- How are we prepared for internal and external audits?
- Are the right people receiving the right training?
- What one step can we take in the next 30 days to grow our audit readiness?
- Use the International Field Finance Guide Self-Audit checklist with your teams to help determine your readiness.
Encourage regions to set one tangible goal.
Closing & Prayer (5 Minutes)
- Recap key idea: Audit-readiness is a sign of trust and maturity in stewardship.
- Pray for integrity, growth, and a culture of openness.
