P.  0. BOX679



540-297-6766  FAX: 540-297-3548



                                                                                          CAROL JOY PREU 


June 15, 2011 


At the request of  Lake Christian Ministries, Inc., (LCM) a comprehensive review was performed on the organization's 2010 books of account.   The review  covered  deposits to and disbursements from the checking account, bank reconciliations, internal controls, and support schedules.


We conducted our review in accordance with generally accepted review standards and accounting  procedures  as required  by the Internal  Revenue  Service  Code  as  an organization described in section 501 c (3) to be treated as a publicly supported organization.  Those standards require examination, on a test basis, of evidence supporting the amounts  and disclosures in the financial statements. Reasonable assurance that the financial statements are free of material misstatement  is  based  on  these  standards.  The  accounting  principles  used  and  management decisions  made  were  assessed   during  the  review.  An  overall   evaluation   of  the  financial statements'  presentation   was  made  which  verified  year-end  checking   and  savings  account balances, as reported by the Treasurer in his financial summaries of the calendar year ending December 31, 2010. "Financial Statements" as used here are defined to include the records as provided by the Treasurer. It is our responsibility to express an opinion on these records based on our review. We believe our review provides a reasonable basis for our opinion.


Review:    The following  summarizes  the results of this review:  In all material respects our review confirmed the accuracy of LCM's  financial records. This determination  is based on our random sampling of documentation supporting deposits and disbursements.


1.  All of the randomly  selected  checks written  were matched  to  the bills paid. As a matter of procedure the bills paid by the Treasurer were filed according to the month paid, and the computerized check stubs were attached to each of the bills.


2.   An assistant treasurer received LCM's  monies and prepared  a log of each check, or cash. The money was then given to the Treasurer who prepared a deposit slip and deposited it into the bank.  We found in all cases that deposited  receipts equaled the total  income  reflected  on  the  income  and  expense  statements   provided  by  the Treasurer. Monthly  bank reconciliation reports verified  the accuracy of the deposits and expenditures.


3.  LCM's Treasurer uses a professional accounting program to carry out the complex disbursements  inherent  in the nature of the organization.  This  system  produces  an audit trail which details each transaction, and provides  a system of internal controls. Upon  our  recommendation   the  balance  sheet  wording  "Retained   Earnings"  was changed to "Fund Balance" conforming to IRS wording concerning non-profit organizations.


4.   The Treasurer demonstrates meticulous record keeping, and is clearly an asset to Lake Christian  Ministries,  Inc.  His  financial  statements  provide  factual  information  to assist LCM in making sound decisions for future growth.


With respect to this review, it is our opinion, based on the records provided, the financial statements produced are free from material misstatement. We appreciate the confidence placed in us and the opportunity to be of service to your organization.


Respectfully submitted, (Jt AK)-t Carol J. Preu

Senior Accountant