Westminster PCA - PCA RBI



[CHURCH NAME]

Finance Policy Handbook

Created By: Finance Committee

Updated [MONTH DAY]

Table of Contents

I. Financial Policies (Adopted and Approved by Session)

A. Gift Acceptance

B.       Christian Service Grants

C. Cash Reserves

D.      Great Commission

1. Budgeting

2. Percentage Calculation

3. Year-end Spending

E.       Facility Improvement Fund

F.       Benevolence

G.      Christian Education Fund

1.  Investment

2.  Return Spending

H.      Memorial Gift

I. Special / Designated Offerings

J. Love Gifts

K. On-line Credit Card Payment Acceptance/Giving Acceptance

L. Reports to the Congregation

M. Advance Planning

N. Insurance for International Trips

O. Budget Overages

 

Appendix A – Fee Schedules

1. Facility Fee Schedule

2. Honoraria Fee Schedule

 

Appendix B – Brochures and Communications – Listing Only (not documents)

1. Ways of Giving with Gratitude                

2. Year-End Giving – Gifting Appreciated Stock

3. Plan Your Stewardship to Give to the Lord’s Work Beyond Your Lifetime

4. Gift Acceptance

 

 II. Finance Committee Purpose & Duties (Adopted and Approved by Session)

A. Finance Committee Mission and Purpose

B.       Finance Committee Chairman and Assistant Chairman Responsibilities

C.      Treasurer and Assistant Treasurer Responsibilities

D.      Financial Accountant Job Responsibilities

E.      Bequest Coordinator

F.      Financial Oversight Property Committee

 

III. Procedures (Not Adopted or Approved by Session)

A. Cash & Count Team

1. Cash Handling Procedures

2. Count Team Responsibilities

3. Count Team Annual Service Agreement                                                            

B. Budget Controls

C. Vendor Comparison

D. Vendor Invoice Processing

E. Credit Card Payment

F. Fixed Assets

G. Financial Statements and Reporting

IV. Legal and Tax Information

A. IRS Group Tax Exemption (not included)

B. [STATE] Sales and Use Tax Certificate of Exemption (not included)

C. [STATE] Department of State Annual Statement (not included)

D. Resolution on 403(b) Eligibility and Contribution (not included)

Gift Acceptance – Fund Raising Policy

NOT FOR PUBLIC DISTRIBUTION (For Session and designated usage)

Approved by Session – [DATE]

[CHURCH NAME] solicits and accepts gifts that are consistent with its mission statement that:

WE EXIST TO:

GLORIFY and enjoy the living God by striving for worship that is pleasing to Him.

NURTURE believers of all ages to become mature disciples of Jesus Christ: rooted in the doctrines of Scripture, zealous in prayer, holy in character, and committed to one another.

PROCLAIM good news of faith in Christ by words of witness and deeds of mercy, in Lancaster County and to all nations of the earth.

Donations will be accepted from individuals, partnerships, corporations, foundations, government agencies, or other entities, generally without limitations.

Currently the following funds are open for support: General, Facility Improvement Fund, Radio, Christian Education Scholarship and Benevolence.

Restrictions on Gifts — [CHURCHNAME] will not accept gifts that, in the opinion of the Session (a) would result in [CHURCHNAME] violating its Bylaws, (b) would result in [CHURCHNAME] losing its status as a not-for-profit organization, (c) would be too difficult or too expensive to administer in relation to their value, (d) would result in any unacceptable consequences for [CHURCHNAME], or (e) are designated for purposes outside [CHURCHNAME]’s above mentioned statement. Decisions on the restrictive nature of a gift, and its acceptance, shall be made by Session in consultation with the Treasurer.

Gifts Generally Accepted Without Review—

• Cash. Cash gifts are acceptable, including by check, electronic transfer, money order, or on-line.

• Publicly Traded Securities. Securities not subject to restrictions and available for immediate liquidation by [CHURCHNAME].

Gifts Accepted Subject to Prior Review — Certain forms of gifts or donated properties may be subject to review prior to acceptance. Examples of gifts subject to prior review include, but are not limited to:

• Bequests and Beneficiary Designations under Revocable Trusts, Life Insurance Policies, Commercial Annuities and Retirement Plans. Donors are encouraged to make bequests to [CHURCHNAME] under their wills, and to name [CHURCHNAME] as the beneficiary under trusts, life insurance policies, commercial annuities and retirement plans. As a matter of biblical principle, [CHURCHNAME] first believes members should give diligently during their lifetime. Any bequests benefiting [CHURCHNAME] should be given without restriction or this church reserves the right to decline the bequest. The session may at times identify areas where gifts may be specifically given. These areas will be communicated periodically to the congregation.

• Charitable Trusts. Where [CHURCHNAME] is designated as a remainder beneficiary of a charitable remainder trust or the income beneficiary of a charitable lead trust.

• Life Insurance. Where [CHURCHNAME] is named as both beneficiary and irrevocable owner of the insurance policy. The donor must agree to pay, before due, any future premium payments owing on the policy.

• Tangible Personal Property. The appropriate party shall review and determine whether to accept any gifts of tangible personal property in light of the following considerations: Does the property further [CHURCHNAME]’s mission? Is the property marketable? Are there any unacceptable restrictions imposed on the property? Are there any carrying costs for the property for which [CHURCHNAME] may be responsible? Is the title/provenance of the property clear?

• Real Estate. All gifts of real estate are subject to review by Session and (potentially) legal counsel. Criteria for acceptance of gifts of real estate include: Is the property useful for [CHURCHNAME]’s purposes? Is the property readily marketable? Are there covenants, conditions, restrictions, reservations, easements, encumbrances or other limitations associated with the property? Are there carrying costs (including insurance, property taxes, mortgages, notes, or the like) or maintenance expenses associated with the property?

Use of Legal Counsel—[CHURCHNAME] will seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:

• Gifts of securities that are subject to restrictions or buy-sell agreements.

• Documents naming [CHURCHNAME] as trustee or requiring [CHURCHNAME] to act in any fiduciary capacity.

• Gifts requiring [CHURCHNAME] to assume financial or other obligations.

• Transactions with potential conflicts of interest.

• Gifts of property which may be subject to environmental or other regulatory restrictions.

• Christian Service Grants Policy

For Candidates Preparing for Full-Time Christian Service (Non-Employees)

Approved by Session – [DATE]

(Note – this would supersede Christian Service Grant Policy adopted [DATE])

Grants, FOR QUALIFIED EXPENSES AT A QUALIFIED INSTITUTION, are available for students at the graduate level who are preparing for full-time Christian service. Grants are approved by the Session upon recommendation by the Adult Ministries Committee and will be paid by the treasurer upon approval. (Employees/Pastors consult Tuition Reimbursement Policy included in the employee handbook)

1. Church Membership. Grants are available to communicant members of [CHURCHNAME], as well as the children or spouses of the children of members.

2. Vocational fitness. The applicant must give assurance of potential fitness for the vocation in which he or she wishes to serve.

3. Attendance at a qualified institution. The institution under consideration must be approved by the Session. Normally it will be a school supportive of Biblical inerrancy and the Westminster Confession of Faith. The institution must maintain a regular faculty and curriculum and normally have a regularly enrolled body of students in attendance at the place where it carries on its educational activities.

4. Credentials. The following credentials are to be sent by the candidate or the school to the chairman of the Adult Ministries Committee:

a. Application filled out by the student and submitted at least three months prior to the beginning of each semester.

b. Transcript of courses and/or grades for the prior semester of academic work completed.

c. Personal interview by the Adult Ministries Committee, if necessary.

5. Amount of grants. Grants will be made based on the following schedule:

a. Part-time students: $500 each semester, $1,000 each year maximum

b. Full-time students: $1,000 each semester, $2,000 each year maximum

c. Maximum total grant to any student is $8,000.

d. The amount of the grant must not exceed the amount of expenses incurred.

6. Changes in Church Membership. During the years of seminary study, a student may decide to change his membership from Westminster Presbyterian Church to a church in the seminary community. This decision may be determined by “under care” issues concerning Presbytery. In such situations, Session will re-evaluate the level of ongoing support.

7. Qualified Expenses. Grants received must be used for tuition and fees required for enrollment or attendance at the qualified institution, or for fees, books, supplies, and equipment required for the courses at the institution.  Any amount received that is in excess of incurred expenses must be returned.

Any exceptions to this schedule may only be made by Session. All grants are subject to the limits of the budget and Session approval.

Cash Reserves Policy

Approved by Session – [DATE]

We endeavor to keep cash reserves at 45 days throughout the year. Toward this goal, cash reserves should be at 60 days at the beginning of any year.

• Cash reserve days are measured by dividing the annual general fund budget, exclusive of the Great Commission budget, by 365.

• In the event that General Fund available cash at the end of a month falls below 45 days, the following steps will be taken and in effect until the available cash exceeds 45 days as measured at the end of the subsequent month:

a. The Administrator will communicate to church staff and committees that cash reserves are low and extra care should be taken to avoid unnecessary expenses.

b. All financial commitments made by church staff or other parties exceeding $1,000 must be approved in advance by the Administrator.

c. All financial commitments made by church staff exceeding $5,000 must be approved in advance by both the Administrator and the Treasurer.

• In the event that the General Fund available cash measured at the end of a month falls below 30 days, the following step will be taken and in effect until the available cash exceeds 30 days as measured at the end of the subsequent month:

a. The Administrator, in coordination with the Senior Pastor, shall review employee staffing and implement steps to reduce costs, including, but not limited to, reducing hours worked by hourly employees.

All purchases of greater than $500 should be approved by the Church Administrator as a means of monitoring cash flow. (approved [DATE])

Two signatures are required on any check of $5,000 or more and the committee chairperson must approve any invoices of $5,000 or more. (approved [DATE])

Great Commission Budgeting Policy

Approved by Session – [DATE]

The Great Commission Committee should submit a provisional budget every September (just as all other session committees), based on projected GC ministry goals, but without a fixed percentage of the overall budget applied. This provisional budget will be subject to adjustment as Session adjusts all submitted budgets to fit projected revenues for the budget year.

Great Commission Percentage Calculation Policy

Approved by Session – [DATE]

Great Commission At the annual meeting of the congregation, the Treasurer or Finance Committee Chairman shall summarize the expenses of the Great Commission account from the prior year and report a “Missions Expense Percentage” amount. Expenses will be either “[CHURCHNAME] Direct Ministry Expenses” (within the walls of [CHURCHNAME] Facilities) or “Outreach Ministries Expenses” (outside the walls of [CHURCHNAME] Facilities).

Missions Percentage The Missions Percentage will be the Total of all “Outreach Ministry Expenses” compared to the total of “[CHURCHNAME] Direct Ministry Expenses” + Total of “Outreach Ministry Expenses”.

Outreach Ministry Expenses

[CHURCHNAME] Direct Ministry Expenses + Outreach Ministry Expenses *

*Expenses are to be of the same calendar year and do not include debt reduction expense or building fund expenses.

Great Commission Year-end Spending Policies

Carryover of Unused Great Commission Funds

All year-end unspent funds in Great Commission budget lines will be carried over into the Great Commission fund balance for the new budget year. (Approved by Session - [DATE])

Year-End Funds

As long as the individual or organization is an existing mission supported by [CHURCHNAME], no approval is needed for dissemination of year-end funds by the session. (Approved by Session - [DATE])

Facility Improvement Fund

Approved by Session – [DATE]

M/S/A to combine the Debt Reduction and Capital Improvement Funds into one fund entitled

the Facility Improvement Fund. New equipment, significant repairs and improvements to the

facility will be paid out of and accounted for in this fund. The fund is open to designated donor

giving and will also be supported by budgeted allocations from the general fund. The name

change will not take effect until the debt is eliminated.

Benevolence Policy

Responsibilities of the Benevolence Committee and Guidelines for the Administration of Benevolent Funds

Approved by Session – [DATE]

Oversight and Membership:

The Benevolent Committee is accountable to the Session.

Membership:

Committee composed of Pastoral staff, Membership Care Committee Chairperson, Deacon Chairperson, Deaconess Chairperson and Treasurer.

Income / Receipts:

The only regular source of income is the Thanksgiving offering. However, special offerings could be taken if the need arose. Arrangements for the special offering would need to be coordinated by the Committee and applicable parties.

Treasurer to provide Committee with a monthly accounting of receipts, disbursements and Benevolent Funds available.

Purpose:

To provide compassionate financial relief to [CHURCHNAME] members (and those that regularly attend) in financial emergencies.

Financial Assistance Administration is separated into two categories. Emergency Benevolent needs would typically be handled by one member of the Pastoral Staff. He would send out a brief description of the need to the Committee and members would give approval. These requests would typically be for one time financial emergency situations in amounts not to exceed $1,000. The administration is further explained below. The recipients of these gifts are to be encouraged to meet with members of the Financial Care Team. Compassionate benevolence is much more than providing financial resources. The right way often involves becoming involved and being part of an accountable relationship.

For requests that require more than a short conversation, second requests or requesting more than $1,000 in assistance, a more extensive procedure is necessary. Two members of the Financial Care team will be assigned to help identify needs, recommend solutions and provide ongoing assistance to requestor if deemed appropriate. Typically these requests will be subject to more discernment by the full Benevolence Committee. The administration is further explained below.

It should be noted, that sometime those in a financial emergency also need professional and nonprofessional services and assistance. This could include legal services and advice, transportation, electrical, handyman or plumbing repairs or even babysitting. Many [CHURCHNAME] members will offer their assistance to those in need. But, we should be cautious not to overwhelm any one person or members with these requests.

Financial Assistance Administration – General:

A financial request might be received or known by the Benevolence Committee, the pastoral staff, Session, Deacons or other member of the church. The request would be forwarded to the Benevolence Committee or assigned Pastoral staff member.

General Guidelines -

▪ Intended as a source of last resort

▪ Not to be considered a loan

▪ Those requesting assistance must be willing to receive financial, family, emotional and spiritual counseling from the Committee, Financial Care Team and Pastoral Staff.

▪ Payment would be to vendors and not given directly to the requestor unless unusual circumstances.

▪ Examples of appropriate Benevolent Fund uses during times of financial hardships for basic needs:

1. Mortgage payment

2. Rent payment

3. Medical expense

4. Food

5. Utility bills

6. Transportation to place of employment

7. Car repairs

8. Clothing

9. Professional counseling appointments

10. Legal expenses

11. Funeral expenses

12. Other basic needs

Financial Assistance Administration – One Time/Tier One:

To be administered by one member of the Pastoral Staff:

▪ Emergency benevolence needs

▪ Not exceeding $1,000

▪ First time requests

▪ Typically most first time requests would not be denied.

▪ All second and what appears could be persistent requests should be referred to Tier Two.

▪ To ensure prudence a brief description of situation would be communicated to Committee who would vote for approval or disapproval of request.

Financial Assistance Administration – Continuing Support/Tier Two:

The Benevolence Committee assigns two members of the Financial Care Team to meet with requestor to gather information. Information would be gleaned using the Financial Information Form.

Normally, the two member team assigned would meet with requestor and determine physical needs and financial condition. Once information is gathered the team will submit the information and their recommendations to the full Benevolence Committee. Their recommendations, including recommended conditions for the requestor, should be in writing.

The written document is submitted to the Benevolence Committee within two weeks of being assigned the duties. The Committee will review the information submitted and recommendations made by the assigned team. A determination will be made within one week. The Committee may request additional information or clarification of information thereof.

The assigned members will meet with the requestor and discuss the determination made by the Committee. The assigned members or contact person will continue to meet with requestor on a monthly basis (whether e-mail, phone or in person, but in person meetings are encouraged) or as needed until such time that the financial crisis has subsided. Thereafter, should there be benefit from continued meetings and mentoring, these should be encouraged.

Criteria for Long Term Aid:

▪ A moderate monthly stipend should be agreed upon to address the regular financial need. Could be a fixed amount or may cover a regular bill – (rent/utility/etc.)

▪ Only if requestor’s family is unable to provide assistance

▪ Only if requestor is unable to work and/or requestor is unable to support a family with earnings (single parent)

▪ Must be reexamined on a semi-annual basis and re-approved by the full committee.

▪ Determine non-financial support to accompany further financial aid.

▪ Non-financial support to accompany further financial aid should be reviewed.

▪ Review the benefit or effects of previous Benevolence support.

▪ Remember that sometimes it is more compassionate for long term not to provide financial assistance.

The purpose, task and role of the two member financial care team is as follows:

▪ Listen to understand perceived needs

▪ Complete Financial Information Form with information provided by requestor.

▪ Review requestor’s financial condition.

▪ Provide budgeting assistance.

▪ Provide financial counseling.

▪ Review cash budget or assist in the creation of one if necessary.

▪ Identify assets and liabilities if warranted based on perceived financial condition.

▪ Identify financial decisions which may have caused the financial condition.

▪ Identify family members that may be able to assist in solving the problem.

▪ Many financial problems are the result of spiritual problems and thus the team must be aware of this and coordinate counseling accordingly.

▪ Provide accountability to the requestor in the area of choices and behavior.

▪ Attempt to safeguard that benevolent funds would not be used in their estimation in a way that would reinforce a negative or irresponsible behavior.

▪ Attempt to identify reasons for unemployment or underemployment by requestor.

▪ Identify ways to assist requestor with job search, training or education.

▪ Suggest alternate sources of financial assistance.

▪ Identify church members that may be able to provide appropriate counseling and/or assistance not able to be provided by the Committee.

▪ Submit written summary and recommendations to Benevolence Committee for determination.

A list of financial counselors is separately maintained by Session.

Christian Education Fund Investment Policy

Approved by Session – [DATE]

Purpose

This investment policy describes the long-term investment objectives of the Fund, establishes investment principles for the Fund’s assets and creates guidelines for evaluating investment decisions.

Statement of investment objectives

The two primary investment objectives are:

1. to provide a continuing and dependable cash payout that is stable - and preferably growing in real terms - after giving effect to inflation and

2. to cause the total value of the assets to appreciate, over time, exclusive of growth derived from any further donations.

To accomplish these goals, Fund should maximize the return on its investments, consistent with the appropriate level of risk and subject to a generation of adequate current income.

Additionally, the assets should be diversified at all times to provide reasonable assurance that investment in a single security or class of securities will not have a significant impact on the assets. Specifically, Fund should have diversified investment options that have materially different risk and return characteristics.

The prudent man rule

In making investment decisions and in supervising and managing assets, a person with investment responsibility for Fund should act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of like character and with like aims.

Investments

In selecting investments, consideration will be given to the requirements for spending, liquidity, diversification, safety of principal, yield, maturity, and the quality and capability of investment managers.

FUND will be permitted to invest in the following categories of investments:

• Growth investments -- These investments seek to maximize value over time, but are the most volatile from day to day. They invest primarily in stocks of companies that have a strong potential for growth.

• Growth-and-income investments -- These investments seek to provide both growth and income. They generally aren’t as volatile as growth investments due to a focus on dividend-paying stocks and some bond holdings as well.

• Equity-income investments -- These investments seek current income and long-term growth of capital primarily through dividends and paid by stocks and/or interest paid by bonds.

• Balanced investments -- These investments seek conservation of capital and current income, as well as long-term growth of both capital and income by investing in stocks, bonds and other fixed-income investments.

• Bond investments -- These investments seek to provide current income. Their primary investment vehicle is bonds.

• Cash-equivalent investments -- These investments are the most stable as they try to preserve the original investment but are limited in their ability to keep up with inflation.

Asset allocation and rebalancing

Fund’s asset allocation guidelines will be consistent with its investment objectives and risk tolerance. These guidelines are designed to provide the highest probability of meeting or exceeding Fund’s return objectives with the lowest possible risk.

Fund will rebalance its portfolio of investments annually.

• Review and monitor investments

• Periodic reviews of the investment will be conducted at least annually. Among other things, such reviews will evaluate:

• The general conditions and trends prevailing in the economy, securities market, and mutual Fund industry.

• Whether each investment remains consistent with Fund’s overall investment objectives.

• Whether the investments are adequately diversified.

• A comparison of the investment results with established indexes or benchmarks over a series of different time horizons.

• The fee structure and expense ratio of selected investments as compared with other alternatives available in the marketplace.

• The experience and qualifications of the personnel providing the investment management services.

Proxy voting

Responsibility for proxy voting rests with the finance committee. The finance committee will review the proxy statements and vote in a manner that is consistent with the goals and interests of Fund.

Investment Policy Review for the Christian Education Fund

Introduction

At least once a year, Fund’s investments and investment policy should be reviewed. Investments should be considered individually and as part of a complete investment program.

Among the things to take into account:

1. Objectives and diversification

a. Are the objectives of each investment still consistent with Fund’s overall investment objectives and goals?

b. Are the investments adequately diversified?

2. Investment results

a. Consider the nature and quality of the investment management services provided to Fund.

b. Examine general conditions and prevailing trends in the economy, the securities markets and the mutual Fund industry.

c. Compare the results of the investments with appropriate industry benchmarks over a series of different time horizons.

d. Analyze the fee structure and expense ratios of the investments in relation to other alternatives available in the marketplace.

e. Check the experience and qualifications of personnel providing the investment management services.

3. Investment expenses

a. What are the expenses associated with each investment?

b. How do these expenses compare with those of similar Funds in their peer group?

c. Are Fund’s overall investment expenses reasonable?

Appendix A – Investment Review Checklist

This could serve as an agenda for the committee meetings. Documentation of the review process is important and provides a written record demonstrating procedural prudence.

1. Consider and review any changes to the investment policy. (If any changes are recommended, make sure to document them and adjust the remainder of this review to take them into account.)

2. Review FUND’s spending policy in the context of FUND’s investment results to confirm that investments continue to provide income sufficient to meet spending objectives.

a. Review the past year’s and next year’s projected expenses to ensure compatibility with investment results.

b. Consider any adjustments to spending objectives.

3. Review FUND’s investments for the prior year, were they consistent with FUND’s investment policy.

a. Consider the nature and quality of investment management services provided to FUND. The evaluation should start with an assessment of the provider and include the provider’s investment philosophy.

b. Compare investments results to a peer group of investments.

c. Compare investment results to a relevant index, which is an appropriate, broad-based index, such as the Standard & Poor’s 500 Composite Index or the MSCI EAFE Index. These comparisons should be made over meaningful time frames like 1-, 5-, and 10-year periods.

4. Review FUND’s investment expenses.

a. Compare the expenses of FUND’s investments with those of applicable peer-group investments.

b. Compare the expenses of FUND’s investments with those found in surveys of other data provided in other investment publications.

c. Analyze increases/decreases in expenses over relevant time frames, such as the life of FUND and recent 1-, 5-, and 10-year periods.

5. Check the experience and qualifications of the investment manger(s).

a. Have there been any changes in the personnel providing investment management services in the past year?

b. What’s the average number of years of experience for the managers of each investment?

6. Consider any changes to FUND’s investments.

a. Look at investment results over a number of different time periods e.g., 1-, 5-, and 10-year periods and the life of the Fund.

b. Ask whether or not each investment fits into the philosophy and objectives of FUND.

c. Document any decision to change investments, including the rationale for the change.

d. Review and/or rebalance asset allocation, if any.

7. Review investments that are subject to special restrictions or limitations.

a. Review appropriateness of the investments.

b. Review compliance with the special restrictions or limitations.

c. Consider if the restrictions can be changed or eliminated.

Christian Education Fund Total Return Spending Policy

Approved by Session - [DATE]

The Finance Committee will recommend a distribution or spending rate to Session for approval after the end of each calendar year. The spending rate or distribution should range from 2% to 7% annually. The distribution spending rate will be stated as a percentage of the 12 quarter rolling average of the fair market value of the investments comprising the Christian Education Scholarship Fund. If new contributions are received after the December quarter, these amounts will be included in the next year's calculation, by adding the amount contributed to each of the quarterly values included in the rolling average calculation. In extreme market conditions, Session may opt to suspend distributions to maintain fund value.

Background Notes and Discussion By Finance Committee [DATE]

[CHURCHNAME] has adopted a total return policy for the purpose of determining the scholarship amount available annually from the Christian Education Scholarship Fund. By utilizing a total return policy, not only are interest and dividends earnings available for scholarships, but capital appreciation will be considered.  When using a total return spending methodology, the smoothing effect of market values offers a more predictable scholarship stream.

The Finance Committee will recommend a distribution or spending rate to Session for approval after the end of each calendar year. The spending rate or distribution should range from 2% to 7% annually. The distribution spending rate will be stated as a percentage of the 12 quarter rolling average of the fair market value of the investments comprising the Christian Education Scholarship Fund. If new contributions are received after the December quarter, these amounts will be included in the next year's calculation, by adding the amount contributed to each of the quarterly values included in the rolling average calculation.

The spending rate should allow the endowment investments to grow at a rate not less than inflation. In extreme market conditions, Session may opt to suspend distributions to maintain fund value. The spending rate holds spending in check through lucrative years, and enables spending in less productive years. Thus, donor funds are being managed to provide a balance between current and future congregational needs and opportunities. Investment decisions can be based on flexible long-term strategies which are not subject to sudden changes in interest rates or market value. Scholarship recipients will be able to count on funds from the Church which will be made available for distribution based not only on changes in current investment income.

The policy shall be effective for scholarship amounts disbursed in [YEAR].

Note – This policy in no way supersedes [CHURCHNAME]’s Gift Acceptance Policy, which allows a careful review to determine whether the best interests of the congregation are served by accepting or rejecting the gift.

Memorial Gift Policy

Approved by Session – [DATE]

TITLE: Planned Giving to [CHURCHNAME] Beyond Regular Contributions

SUBTITLE: Practical Guidelines for Special Gifts, Including Memorial and Estate Gifts & Bequests to [CHURCH NAME].

[CHURCHNAME] recognizes that members and non-members may wish to contribute to the ongoing operations of the church – both during their lifetimes and as they prepare for disposal of their earthly estates. The church believes that a decedent’s care for family members is an important consideration in estate planning. [CHURCH NAME] strongly urges those who wish to make bequests to the church through their estate to seek competent professional assistance. The PCA Foundation, (1-800-700-3221) our denomination’s charitable and planned giving organization, offers help in this area. Such advice is recommended in order that unexpected problems with estate taxes and family obligations/expectations may be avoided.

The following two issues guide the development of this policy:

1. [CHURCH NAME] has no endowment funds designated (nor desires to establish such funds) for support of its annual operating and annual missions budgets. As a matter of principle, [CHURCH NAME]’s operating budget will always be supported only from tithes and offerings from living donors.

2. [CHURCH NAME] wishes to avoid family misunderstandings which might arise from bequests designated for purposes or projects which the Session has not approved and/or may consider inappropriate.

Therefore, the Session has established the following objectives to guide you, should you wish to include [CHURCH NAME] in your gift giving design:

1. Gifts to [CHURCH NAME] may simply be left undesignated. In such cases, the Session will promptly determine one or more current areas of greatest need and distribute the funds accordingly.

2. A Memorial gift is usually a one-time gift from an individual, honoring the memory of a deceased loved one. Such gifts may be made in response to suggestions or requests of the decedent or his/her family.

3. Gifts may be designated to any [CHURCH NAME] fund currently open to receive contributions. At the date these guidelines were written, the [CHURCH NAME] funds currently approved by the Session to receive designated gifts are:

▪ Great Commission Fund

▪ Debt Reduction Fund (Became Facility Improvement Fund in [YEAR])

▪ Radio Ministry Fund

▪ Christian Education Scholarship Fund

▪ Benevolence Fund

▪ Music Program

▪ Library Acquisitions

▪ Capital Improvements (Merged with Facility Improvement Fund in [YEAR])

The funds which are eligible to receive restricted or designated gifts are subject to change by the Session without notice. Contributions restricted or designated for purposes other than the current open funds are accepted only upon review and approval by the Session. Contributions with restrictions that the Session determines are not within the current purpose and mission of [CHURCHNAME] will be re-designated by Session.

4. [CHURCH NAME] will have broad discretion in applying your gift to best match your desires with current needs. [CHURCH NAME] will always act in good faith in its efforts to comply with your stated intentions. Therefore, if you wish to specifically designate your gift, it is important that such designation conform to the guidelines stated in #3 above.

5. [CHURCH NAME] reserves the right to decline any gift designated in a manner or for a purpose which does not conform to the guidelines of this policy.

6. [CHURCH NAME] encourages donors to give glory to God alone in their stewardship and giving of what God has entrusted to them. [CHURCH NAME] made it a policy at its founding to strictly avoid the naming of memorials to any deceased person, or to honor any living person. Therefore, names will not be affixed to any plaques, nameplates, room furnishings, bookplates, scholarships etc. However, the amount of the gift and the name of the giver will always be a matter of record in the Session minutes.

7. If you intend a gift to benefit an individual missionary, another non-profit organization or any other person or institution other than [CHURCH NAME] – even if [CHURCH NAME]’s annual budget supports this person or institution, you are requested to make your gift directly to that person or institution as [CHURCH NAME] is not intended to be a conduit or administrator of such gifts.

8. [CHURCH NAME] recommends that you discuss your gifts in advance with other beneficiaries of your estate, especially family members, so your wishes will not come as a surprise to them.

9. A representative of the PCA Foundation or the Session will always be happy to discuss your estate design in a confidential manner, so that this policy is properly understood and applied as to make plans to achieve your wishes with respect to giving for the God’s work at [CHURCH NAME].

Special / Designated Offerings Policies

Offerings from Concerts

Offerings taken at scheduled music concerts are designated for the “Concerts” section of the Worship Committee budget, and should be used to supplement the funds budgeted in this line item for scheduling of quality musicians for future concerts. (Approved by Session - [DATE])

Concert offerings will not be receipted.

Designated Gifts

It is the policy of the church not to accept any designated gifts unless the church has informed the congregation and solicited giving for a specific purposes, such as a special offering (i.e. Easter, Missionary Conference, Thanksgiving) building fund (building fund became Facility Improvement Fund in 2015), memorial gifts, deacon fund, etc. Further, this policy prohibits the church from acting as a conduit for designated gifts which do not conform to the designated gifts requirement noted above. (Approved by Session - [DATE])

Special Offering

To define the process and time parameters for special offering giving enabling the treasurer of the church to manage deposits and disbursement of account balances according to Session designation.

1. Session approves all special offerings and the designation of the giving.

2. Session approves the announcement of an opening date and designated date for the special offering giving in the church bulletin.

3. The closing date of the special offering shall be 30 days after the designated date, i.e. Easter, Christmas, Etc

4. Funds received after the 30 days shall be deposited in the general fund account.

Approved by Session – [DATE]

Love Gifts Policy

Designated conduit gifts are precluded by Session Policy as approved [DATE]. The policy is detailed in Policy I.I. – Special / Designated Offerings.

Love Gifts - Designated and Conduit Gifts including those for Benevolence – Nonemployees:

IRS Publication 526, summarizing tax code includes the following prohibition "You cannot deduct contributions to specific individuals, including the following:

--Contributions to individuals who are needy or worthy. This includes contributions to a qualified organization if you indicate that your contribution is for a specific person. But you can deduct a contribution that you give to a qualified organization that in turn helps needy or worthy individuals if you do not indicate that your contribution is for a specific person.”

For donations to be eligible for possible tax deduction by the donor, the church must demonstrate what the IRS calls “discretion and control” over such donations. When Session decides via a budget or the approval of a non-budgeted item, then [CHURCH NAME] has exercised such discretion and control. [CHURCH NAME] operates well within these guidelines.

Also donors may “restrict” a donation for a particular purpose, and if this purpose is supported by the mission statement (and similar supporting statements) of [CHURCH NAME], then such donations are still under the discretion and control of [CHURCH NAME]. Again [CHURCH NAME] is operating within acceptable guidelines and these practices are outlined by our Gift Acceptance Policy.

When funds are collected for any other purpose other than what is supported by the mission statement, then there is more of a burden of explanation as to why we are involved in such activity. Such collection and disbursement of funds can be confusing to the giver of such funds and does pose potential risk to the church’s non-profit status.

Fairness:

Any arbitrary decision to provide such love gifts in the absence of a policy would leave [CHURCHNAME] decision-makers open to criticism.

Employee Love Gift Policy

Approved by Session – [DATE]

Practice for employee love gifts:

1. Venue (event) to be decided by Session

2. Members and friends are to be given the opportunity to give privately to the above individual (recipient).

3. The church would provide a receptacle (box, basket etc.) for individuals (donor) to put sealed

envelopes cards and/or gifts.

4. The cards would be given to the individual (recipient) unopened and unaccounted for.

5. If the individual (donor) cares to give anonymously they can give - gift cards, cashier checks, money

orders or cash. (No checks payable to [CHURCHNAME] would be accepted.)

6. The gift would not be tax deductible to neither the giver nor the recipient.

On-Line Credit Card Payment Acceptance Policy

Approved by Session – [DATE]

At the meeting of the [CHURCHNAME] Session (Board of Elders) on [DATE], the following resolution was proposed and approved by the Session:

Resolved:

WHEREAS the Session of [CHURCHNAME] has directed the implementation of the ability to receive online credit card payments for [CHURCH NAME] events/programs;

WHEREAS the financial institution facilitating such payments on behalf of [CHURCH NAME] has requested that a board resolution is signed to acknowledge board authorization to receive credit card payments;

The Session of [CHURCHNAME] does hereby approve the acceptance of online credit card payments for such [CHURCH NAME] events as Session deems appropriate.

Signed:

_________________________________________

[NAME]

_________________________________________

[NAME]

Offering and Giving Payment Acceptance Policy

Approved by Session – [DATE]

Online contributions for all reasons are approved. This includes Automated Clearing House (ACH) receipts, credit and debit acceptance.

Reports to the Congregation

Authorization to send semiannual financial giving information to members, containing a year-to-date statement of general and building fund giving. (Approved by Session - [DATE])

A ruling elder should present a quarterly report to the congregation on the church’s financial status. (Approved by Session - [DATE])

Advance Planning Policy

Approved by Session – [DATE]

Session committees should provide to the Leadership and Vision Committee by the August Session meeting each year anticipated additional staff needs for the next three (3) years. This should include both new staff needs and/or expanded staff hours for the existing staff. ([DATE])

Insurance for International Trips Policy

Approved by Session – [DATE]

Any church-sponsored international trip (Missions, SS class, etc.) is required to purchase individual trip insurance, as our liability policy does not cover international travel. Because international trip insurance is quoted on a per trip basis and is dependent upon length of travel, destination, and quantity of people attending a trip, it is impractical to get blanket coverage to cover this risk.

Budget Overages Policy

Approved by Session – [DATE]

Committee Chairmen approve expenditures over the amount allocated in line items contained in the committee budget and determine what account within said budget will be reduced to offset the overage.

Appendix A-1

Facility Fee Schedule

|Room/Area |Category 1 |Category 2 |Category 3 |Category 4 |

|104 Kitchenette |N/C |Donation ($25) |$50 |$75 |

|126 |N/C |Donation ($25) |$25 |$75 |

|132 (Gym) |N/C |Donation ($150) |$225 |$375 |

|Gym Athletic Use |N/C |Donation ($10/hr) |$15/hr |N/A |

|136 Kitchen |N/C |Donation($100) |$150 |$250 |

|Classroom |N/C |Donation ($25) |$25 |$75 |

|Reformation Room |N/C |Donation ($100) |$175 |$375 |

| With Food |N/C |Donation ($175) |$350 |$600 |

|Gathering Space |N/C |Donation($100) |$175 |$375 |

| With Food |N/C |Donation($175) |$275 |$600 |

|Sanctuary | | | | |

|1-500 |N/C |To Be Set |$40/hr |$100/hr |

|501-1,000 | |Fee to be set upon Session | | |

| | |approval | | |

|LL6 and LL |N/C |Donation ($50) |$75 |$150 |

Categories and Other Notes:

1 – [CHURCHNAME] Supported Ministry

2 – [CHURCHNAME] Member and Grandfathered Groups

Grandfathered Groups include, Christian Business Men’s Committee; Dayspring Academy, Lancaster Bible College, Lancaster Christian School, Mennonite Central Committee, Messiah Sing-Along and Veritas Academy

3 – Non-supported Evangelical Ministry

4 – Private Use

All fees are for a 4 hours period and a 4 hour minimum rate will apply. After that the hourly rate will apply. Custodial fees cover the cost of supplies and wages.

Appendix A-2

Honoraria Fee Schedule

PREACHING/LECTURES:

(Note-- these never apply to [CHURCHNAME] pastors, members or staff.)

1. Sunday morning two service guest preacher: $500

2. Sunday evening guest preacher, Lenten Series preacher, or

Summer Family Night guest speaker: *$300

3. Reformation Speaker, or any time when specific topics are

assigned; this amount per preparation made by the speaker: $500

MUSICIANS:

1. Two morning services substitute organist, includes rehearsal time: $275

If only one morning service is played: $175

2. Wedding organist with no soloist: $225

3. Wedding organist with 1-2 soloists: $250

4. Wedding organist with 3+ soloists: $275

5. Wedding singer/ instrumentalist—best to ask them. Minimum: $175

6. Funeral organist with no soloist involved: $175

7. Funeral organist with soloist or choir: $200

8. Choir director for a funeral: $100

OTHER PERSONNEL:

1. Sound board technician for funeral (including editing/duplication): *$ 75

2. Sound board technician for funeral (including editing/duplication): *$100

3. [CHURCHNAME] wedding coordinator: $140

4. Custodian, for a funeral, or wedding without reception held here: $100

5. Custodian, for a wedding with a reception held in our building: $225

PREACHING/LECTURES - [CHURCHNAME] PASTORS:

1. Weddings: $0 Suggested / No Expectation ([CHURCH NAME] Pastors have deemed part of their normal work duties)

2. Funerals and Memorial Services: $200.00 for a pastor’s service is suggested as Session authorized.

Wedding Fee – An additional “non-member wedding fee” of $1,000 to be charged for all weddings approved as qualified PCA exceptions. The fee is to be distributed by the administrator as additional honorariums to [CHURCHNAME] staff in token for their additional wedding labors and for building utility costs. Approved by Session [DATE].

*Changes effective [DATE]

Appendix B

List of Brochures and Communications

Ways of Giving with Gratitude

Year-End Giving – Gifting Appreciated Stock

Plan Your Stewardship to Give to the Lord’s Work Beyond Your Lifetime

Gift Acceptance

Finance Committee Mission & Purpose

Approved by Session – [DATE]

Mission:

• To assist Session in fulfilling its responsibilities of fiscal and legal oversight

• Financial planning and reporting

• Promotion of stewardship principles to congregation, staff and volunteers

• Communication of financial information to Session and congregation with transparency

• Oversight of internal control policies, structure and procedures that safeguard ministry assets, support ministry goals and encourage accountability with stewardship of God’s resources as a first priority

• Responsible to ensure that the church remains compliant with tax and financial laws and regulations

• Oversee Risk Management (insurance, legal and organizational)

• Assist Leadership and Vision Committee and other committees of church to link visionary thinking with detailed planning

Membership:

• Session Members (Chair and Vice Chair)

• Deacon Representative – preferably a member of the Property Committee

• Church Administrator – Permanent member – ex officio

• Treasurer

• Assistant Treasurer

• Minimum of three other members from the congregation

• Financial Accountant/Secretary – Permanent member – ex officio

Membership Term:

• Standard term of 3 years with no more than 2 consecutive three year terms (maximum of 8 years with serving of partial term)

• No limit on term for paid staff, including Church Administrator and Financial Accountant/Secretary

DETAIL OF RESPONSIBILITIES

Financial Reporting

• Oversight of the maintenance of financial records

• Stewardship of God’s Resources entrusted to [CHURCH NAME] – The careful, responsible and biblical management of the funds entrusted to [CHURCHNAME]

• Provide transparent financial information to Session and the congregation that communicate the financial position and results of operation of [CHURCH NAME], including the following reports (at a minimum):

o Monthly summary and detail to Session

o Monthly financial status in bulletin

o Quarterly summary reports on the website

• Provide financial information to staff and committees (as specifically requested)

Financial Planning and Budgeting – under Session direction

• Oversight and input of short-term (annual) and long-term (multi-year) goals on how resources will be used for goals and objectives of ministry purposes

• Set cash reserve goals

• Evaluation of [CHURCH NAME] against financial benchmarks from other churches and ministries of same size and scope in giving, expenditures and employee salaries and benefits

• Review planned Session motions for financial impact prior to consideration by Session

o Finance Committee should evaluate revenue and expense estimates for reasonableness

o The Finance Committee should review all proposed motions for financial impact. The Finance Committee will need the proposed motions at least one month prior to the anticipated presentation to Session.

Safeguard Assets of Church

• Follow offering and cash receipt policies and procedures

• Keep records of property, plant and equipment

• Oversee investment of Church resources in mutual funds

• Review bids for purchases greater than $5,000 obtained by the Church Administrator

• Monitor purchasing procedures and policies.  (Example – for purchases of equipment or supplies between $1,000 and $5,000 recommend that two or three suppliers are explored and documented by purchaser.)

• Review property and liability insurance coverage and quotes obtained by the Church Administrator

Interaction with Other Committees and Staff

• Open and regular communications with Committees concerning financial and legal matters

• Finance Committee Membership on

o Christian Education Scholarship Committee

• Direct Coordination & Oversight of Financial Aspects

o Deacon Property Committee

o Deacon Technology Committee

Audit Committee

• A standing Committee of the Finance Committee

• Assigned the task of reviewing the adequacy and operation of internal control policies and procedures

• Coordinates scope and necessity of internal and/or external financial audits or internal control procedure reviews

Risk Management

• Property/Casualty Insurance

• Liability Insurance

• Employment Practices

• Group Insurance/health and disability

Compliance with Laws and Regulations

• Payroll

• Health Care

• Charitable Giving

• Receipting of charitable gifts (cash / noncash)

• Reporting (Form 1099)

Donor Giving

• Accurate confidential collection and reporting accumulation

• Compliance with [CHURCH NAME] Gift Acceptance Policy

• Follow donor designations

• Oversight of known bequests

o Appoint and communicate with Bequest Coordinator per Bequest Coordinator policy approved by Session [DATE]

• Investment Management and oversight

o Compliance with Investment Policy of the Christian Education Scholarship Fund

o Compliance with Christian Education Scholarship Fund Spending Policy

Finance Committee Chair & Assistant Chair Responsibilities

Approved by Session – [DATE]

The Session members, Chair and Assistant Chair are to set the agenda, conduct and facilitate the monthly Finance Committee meetings and to be the main liaison between the Session and Church Committees concerning financial matters.

The Finance Chairs should communicate session financial actions to the Treasurer and Assistant Treasurer as required, if neither of these positions are filled by a Session member.

The Chair and Assistant would share responsibilities as needed to facilitate the functioning of the Finance Committee and related financial needs of the church. They would be responsible for, but not limited to, the following:

1. Recommend to Session for approval with Finance Committee input, the persons to fill the following positions:

a. Treasurer

b. Assistant Treasurer

c. Finance Committee members at large

d. Work with the Deacon Chair on selecting a Finance Committee representative

2. Work with the Leadership and Vision Committee and Church Leadership to fill the positions of Church Administrator and Financial Accountant.

Periodically and regularly review that Financial and legal transactions are being conducted in accordance with current [CHURCHNAME] policy the PCA Book of Church Order, current state, local and federal government requirements.

Treasurer & Assistant Treasurer Responsibilities

Approved by Session – [DATE]

While many of the oversight responsibilities for the Treasurer and Assistant Treasurer are similar to the Finance Committee’s responsibilities, the persons in these positions would interface directly with the Church employees to implement policy changes and oversight of financial functions. They would also directly communicate with donors as needed concerning stock gifts, personal property gifts, memorial gifts or other items as required.

Report To

• Finance Committee Chairmen / Session

• Assistant Treasurer is assigned duties by the Treasurer

Summary

• Oversight of Financial Reporting

• Oversight of Safeguarding of [CHURCH NAME] Assets

• Oversight over cash management functions

• Oversight of charitable receipt functions, cash and noncash gifts

• Duties as assigned by Session / Finance Committee / FC Chair

• Serve on Benevolence Committee

Detail

• Approve and sign checks in excess of $5,000 and in the absence of the Church Administrator

• Periodically review payroll and payroll procedures

• Review and approve recording of receipts and disbursements

• Review bank reconciliations

• Review compliance with budget

• Review and supervise preparation of financial statements

• Approve sale of donated securities

• Approve purchase / sale of Mutual Fund investments held by [CHURCH NAME] (Cemetery Committee assets / Christian Education Scholarship investments)

• Approve debt payments in excess of normal debt service payments

• Tax and Regulatory reporting – unclaimed property, Form 720 Excise Taxes related to ACA; Form 990 / 990T Health Care Tax Credits; Forms 1099 as needed

• Oversee preparation of PCA Financial Report as needed

• Communicate financial position and results of operations to Finance Committee, Session, Committees, Staff and Congregation

• Oversee annual budget preparation as needed

• Communicate with donors regarding restrictions and other financial matters as necessary

• Communicate regularly with Bequest Coordinator when there are open bequests

Financial Accountant/Secretary Job Responsibilities

Approved by Session – [DATE]

Reports to

• Church Administrator

Summary

• Responsible for all aspects of financial recording and reporting

Detail (Excluding Offering)

• Cash receipt and miscellaneous income functions (deposit / recording)

• Facility use billing and collection tracking in coordination with Church Administrator

• Record offering in general ledger by donor designated fund purpose

• Online registration and receipt function (recording / reconciling)

• Assist applicable parties with event registration tracking

• Foot invoices for accuracy and code for payment approval

• Record approved expenses in accounting software and prepare checks for signature and mailing

• Communications with vendors as necessary

• Monthly bank reconciliations

• Summarize employee time and report to payroll service provider in coordination with Church Administrator

• Collection of Property, Plant and Equipment information – detailed record of cost, description and date acquired

• Preparation of monthly Financial Statements

• Records offering contribution detail by donor and fund on a weekly basis

• Records other giving contribution detail by donor and fund

• Electronic giving management and recording

• Record investment income and other mutual fund transactions monthly

• ST Missions contribution tracking and reporting of donors by participants

• ST Missions expense tracking and reporting by trip

• Memorial Gift tracking and acknowledgement to families

• Report information to staff and committees as requested

• Receipting of stock donation information

• Preparation of quarterly and annual commitment and giving statements

• Written and verbal communication with donors as needed

• Annual budget assembling and summarization

• Maintenance and filing of records of the church

Offering Detail

• Function as Count Team Leader to oversee counting and deposit preparation on Monday morning

• Coordinate small group of volunteers to assist with offering counting process

• Record contribution detail by donor and fund on a weekly basis

• Collection of and oversight of Annual Count Team Service Agreement

Bequest Coordinator

Approved by Session – [DATE]

Purpose: To define prudent steps needed to represent [CHURCHNAME] when named a designated beneficiary of an estate.

The Finance Committee appoints a volunteer bequest coordinator (with session’s approval) to do the following:

1. As soon as [CHURCHNAME] is notified that [CHURCH NAME] is a beneficiary to the proceeds of an estate, the following is to be done:

a. Review the will online to verify what we are told is what is in the will.

b. Make a brief summary of the proposed time line and transactions for the estate.

c. List executor and attorney for the executor with contact information for both.

d. Notify the Finance Committee when the timeline or transactions vary from the summary.

e. Keep a file with all of the above items and update as necessary.

2. Submit a summary of the review of the items in point #1. to Session for acceptance

3. [CHURCH NAME] Session approves acceptance of the bequest and its designation (s).

4. After approval, the bequest coordinator:

a. Acts at the direction of the Finance Committee and on behalf of Session.

b. Seek consideration in the best interest of [CHURCH NAME].

c. Communicates with the executor and attorney responsible to carry out the provisions of the will and bequests.

d. Communicates with and seeks special considerations from the state Attorney General’s Office if needed.

e. Reports at least quarterly to the [CHURCH NAME] Finance Committee and treasurer.

f. Finance Committee to oversee the work of the bequest coordinator and petition Session for all actions deemed necessary to represent [CHURCH NAME] interest.

(Note) The bequest coordinator needs to be able to do much of the above work during regular business hours.

Financial Oversight Property Committee

Approved by Session – [DATE]

The Finance Committee shall have oversight of deacon spending.

Cash Handling Procedures

Updated [DATE]

CASH RECEIPTS

Regular Sunday Offerings

Ushers collect the offering on Sunday (total of three collections – two in AM and one in PM). Each usher systematically presents to the head usher the contents in the offering plate to be placed in the offering deposit bag. A witness notes that all offerings collected are placed in the bag. The head usher takes a second look at each collection plate to verify that the ushers have placed the contents of each offering plate in the bag. The bag is then locked, signed-off (by the head usher and a witness) and dropped in the safe through a drop slot. The bag is taken to the safe by at least two ushers (or an usher and another individual if an usher is not available). The usher teams are rotated monthly. The safe is bolted to floor.

Special circumstances – if an usher receives a blue slip or offering envelope after the offering has been placed in the drop safe, it may be placed in the Media Collection box or in the secure wall-mounted deposit box near the finance office.

This same offering procedure applies to special events, such as Musical events.

Sunday school offerings are collected by teachers in all children’s classes up to and including senior high and placed in sealed envelopes. The weekly amount collected is minimal, usually less than $50.00. The Sunday School Superintendent for youth goes to each classroom and collects the envelopes, placing them all in one sealed envelope and drops it in the safe through the drop slot.

Offering Counts

There are three count teams made up of five volunteers (at least two are present in the office when bags are opened). Teams rotate monthly. Each count team member is required to sign the “Annual Offering Count Team Member Service Agreement,” which defines/confirms their responsibilities.

Monday morning about 9:00 a.m. (or Tuesday if office is closed on a Monday) the Office Manager or Financial Secretary [Financial Accountant] along with one person from count team goes to the safe to retrieve contents. Rotation is done of count team person each week of month going to safe room. The safe requires a combination to open. The combination is maintained by the Financial Secretary [Financial Accountant], the Treasurer and the Church Administrator. The safe combination is changed when there is a transition in financial staff.

The locked bag requires a key to open. There are five bags with five corresponding keys and one master key. The master key is maintained in the Finance Office. There is a second set of keys maintained by the Church Administrator.

When the Office Manager is on vacation, the Financial Secretary [Financial Accountant] manages count activity.

Loose cash recorded on cash sheet is verified by a second person. Envelope cash is recorded on cash sheet is verified by a second person. Cash sheets are initialed by the preparers and verifiers. Loose checks and cash for radio or other odd categories are recorded on cash sheet by Office Manager and are verified by second person.

Responsibilities of the count team are in the Count Team Responsibility Policy section.

Contributions are logged into the church management software at the donor level by the Office Manager. Offering is summarized on an excel spreadsheet that is sent to Treasurer, Assistant Treasurer, Financial Secretary [Financial Accountant] and Finance Committee Chairman. This reconciles directly to the deposit slip prepared by the Office Manager. The spreadsheet is also the basis for recording the offering by purpose (fund) in the accounting software. Split gifts (between different funds) are allocated based on church management software contribution report detail. The posting date in the church management software matches the offering date. On at least a quarterly basis, the total contributions in the church management software are reconciled to the contributions in the accounting software by the Assistant Treasurer.

Automatic Transfers/Electronic Receipts

Electronic giving is available through a link on the church’s website. Through this link, the contributor is directed to a website hosted by the Merchant Processor, which allows the contributor to request an account. This request is then forwarded to the church office staff, which links the requested account to a specific member in the church management software (or creates a new account in the software, if necessary). The contributor is then notified that the account has been approved and may set up a one-time contribution or a repeating contribution using a debit card, credit card or a ACH from a bank account. Contributors can also choose to contribute as a guest (without an account).

All card and/or bank account information is hosted on a secured external site, and is not transferred to the church. As contributions are made, the monies are deposited into the church’s bank account and the contribution amount automatically updates the contributor’s giving record in the church management software in conjunction with a manual synch of the church management software with the secure external site. Based on notification of the contribution received, the accounting software is also manually updated for the contribution.

Miscellaneous Income and Other Cash Receipts

Fees collected by office, book sales, cd sales, facility use, custodian charges, contributions through mail, collections at meals, collections at prayer breakfasts and collections at a variety of other events. These are deposited in the drop safe. The depositors use a standard internally-developed deposit slip showing the amount being deposited. Church Administrator bills for facility use and related items. These amounts are deposited into the safe, and then counted on Mondays along with the offerings. Although the Financial Secretary [Financial Accountant] takes care of summarizing and recording these amounts in the financial software, the count is completed with at least 2 people in the room (typically the Financial Accountant and the Office Manager, but it could be one of these 2 plus a count team member). The cash and checks received are recorded on a count sheet, sealed and deposited at same time as the offerings.

Short-term mission checks are processed by Financial Secretary [Financial Accountant], and copies are given to the Great Commission Coordinator. Kingdom Builders checks received and recorded by Youth Assistant, and are placed in the drop safe. The Financial Secretary [Financial Accountant] retrieves these items for the next deposit.

Checks received by mail and identified by office staff (without opening envelope) as potential offerings are placed in the drop safe and are counted as part of the next count team procedure.

All recorded on the miscellaneous receipt form, indicating name, description, account and other information. This is used to record the receipt into in the accounting software.

Stock Gifts

The church’s broker of choice is Edward Jones and Associates. All inquiries regarding donating stock gifts are provided with the church’s account information with Edward Jones. Gifts of this nature are transferred into [CHURCH NAME]’s account by other brokerage firms. Doug Hodges calls the Church Treasurer or Financial Secretary [Financial Accountant] upon receipt of a stock gift. [CHURCH NAME]’s policy is to sell securities at market price and Treasurer or Financial Secretary [Financial Accountant] requests that this be done. The church does not hold securities.

Doug Hodges provides open and close stock prices on date of receipt and provides to [CHURCH NAME] for donor receipt purposes. Stock gifts are recorded in the contribution records (within the church management software) based on the price at the date of receipt, and are recorded in the accounting software based on the sale price, resulting in a reconciling item between the contribution records and the accounting records.

Banking/Deposits

Deposits of Sunday offerings are made by Financial Secretary [Financial Accountant] on Mondays (or if holiday and no count is done, then the deposit is made on Tuesday).

The Office Manager places the deposit into a sealed Mylar bag provided by the bank. The deposit slip amount is verified by another party, written on paper slip with serial number and both sign the paper slip. The paper slip is attached to deposit information for future verification purposes. The bag is taken on the same day to the bank by the Financial Secretary [Financial Accountant]. The time at which the Financial Secretary [Financial Accountant] leaves the building to present the deposit to the bank teller varies from week to week for security purposes. The deposit is taken on the day following bank holidays.

Deposits of miscellaneous receipts are also deposited by the Financial Secretary [Financial Accountant] on Mondays.

When the Financial Secretary [Financial Accountant] is on vacation, the Office Manager is the back up person for making deposits.

CASH DISBURSEMENTS

Check Stock

One box of 500 blank checks are kept in a filing cabinet in the Finance office, which is locked at departure. The rest of the blank check stock is kept in the old safe. The combination of that safe is kept by the Financial Secretary [Financial Accountant] and the Church Administrator and Office Manager. When needed, the Financial Secretary [Financial Accountant] retrieves the next sequential box of 500 blank checks.

Checks are submitted for signature with accompanying supporting documentation. The Church Administrator initials check request or support as evidence of the review of supporting documents.

Authorized Signers

Current Authorized Check Signors:

Church Treasurer [NAME]

Church Assistant Treasurer [NAME]

Church Administrator [NAME]

Church Corp. President [NAME]

Two signors are required for checks in excess of $5,000. Checks indicate that two signors are necessary for checks in excess of this amount. Generally, the Financial Secretary [Financial Accountant] writes the majority of the check, and the Church Treasurer signs most checks unless payment needed immediately. When disbursements are needed immediately and Financial Secretary [Financial Accountant] is working, the checks are processed and Church Administrator signs. If Financial Secretary [Financial Accountant] is not working, the Church Administrator is able to process check requests.

Normal Expenses – Disbursed from Main Checking Account

There are a few different categories of expenses that could be classified as “Normal Disbursements”. There are some differences on the approval processes and how payments are made. These will be broken into different categories or “Types” to help explain the differences.

Type I – Regularly occurring expenses. Would include Utilities, Office Supplies, Insurance and similar expenses. These invoices are received in the mail, reviewed and approved for payment by the Church Administrator, processed for payment by Financial Secretary [Financial Accountant] who prepares checks for signature. Church Treasurer reviews invoice and signs check for mailing. Certain expenses, such as bank service charges, credit card receipt fees are not approved via purchase requests, but are deducted directly from the bank accounts and are recorded in the accounting software as part of bank reconciliation process.

Type II – Materials and Supplies ordered for programs by someone other than Church Administrator. These invoices get directed to applicable person, coded using a purchase request form and approved accordingly. These are passed on to the Financial Secretary [Financial Accountant] for processing and check generation. Church Treasurer reviews documentation and signs check for mailing.

Type III – Expense Reimbursements are typically costs incurred by church members for specific programs, activities or short-term mission trips. These requests are typically prepared by person responsible for the program on a purchase request form with original invoice documentation attached. Form is given to Financial Secretary [Financial Accountant] for processing and check generation. Church Treasurer reviews documentation and signs check for mailing.

Type IV – Staff Expense and Mileage Reimbursements are typically costs incurred for employee allowances, mileage or other approved programs. These forms are prepared by applicable church employees at the end of each month to support personal expense reimbursements and reimbursable mileage. Forms include account coding based on purpose and must be accompanied by original invoices or receipts. The forms are given to the Financial Secretary [Financial Accountant] for processing and check generation. Church Treasurer reviews documentation and signs checks for distribution.

Type V – Benevolence Requests – One of the pastors or a Financial Mentor submits purchase request form for payment processing to Financial Secretary [Financial Accountant] after approval by Benevolence Committee. Church Treasurer reviews documentation and signs checks for distribution. The Church Treasurer is on the Benevolence Committee, which approves (in advance) these disbursements, so is aware of the approval status of these requests before signing the check.

Type VI – Missions. Regular payments to mission organizations are processed monthly. Great Commission Coordinator reviews and approves monthly list of payments to be made to these organizations. Church Administrator reviews documentation and Church Treasurer signs checks for distribution. Approval based on budgeted disbursements. External support for these disbursements is not deemed necessary. For unusual missions requests (primarily spending of “Undesignated” missions funds), spending is requested by the Great Commission committee, approved by Session, and then the Great Commission Coordinator submits a purchase request form to the Financial Secretary [Financial Accountant] for processing and check generation. One of the Session Finance members typically keeps the Financial Secretary [Financial Accountant] and Treasurer informed of the Session approvals so that they are aware for purposes of processing, reviewing and signing the checks (as applicable).

Payroll

Leadership and Vision Committee sets Church employee staff salaries and recommends pay rates for pastoral staff which are part of the calling process and approved by the congregation at the congregational meeting.

A payroll processor prepares biweekly payroll checks and remit applicable payroll tax withholdings and employer taxes. Pay rates and withholding information are remitted by the Church Administrator to the payroll processor (generally via email or online).

Staff submit hours worked (vacation, holiday hours, study leave) to the Financial Secretary [Financial Accountant] via e-mail or via paper. The Office Manager sends an email reminder of submission deadline biweekly to employees submitting timesheets. The Financial Secretary [Financial Accountant] verifies the timesheets hours and summarizes them on a spreadsheet, which is then submitted to the Church Administrator. The Church Administrator reviews the spreadsheet and verifies the timesheet hours before submission to the payroll processor via online entry.

Payroll is processed and paycheck details are sent back to Church Administrator. The Financial Secretary [Financial Accountant] distributes direct deposit vouchers and payroll checks with stubs. Any paychecks are signed by Church Administrator or Treasurer before distribution. Almost all pay is distributed via direct deposit to the employee’s bank account. The exception is typically only the first paycheck for a new employee (before the direct deposit is set up).

The processed payroll is compared to the hour spreadsheet and summarized by Financial Secretary [Financial Accountant] using an excel spreadsheet and recorded via journal entry into accounting software. Spreadsheet splits staff salary and related payroll taxes by department and generates salary journal entry. Spreadsheet also calculates employer retirement (403b) amount due and summarizes employee voluntary retirement withholdings. A remittance request form is then prepared, as part of this process.

Salary Journal Entry details (wages, payroll taxes, payroll processing fee) and Retirement Remittance form are reviewed and approved by Church Treasurer. The Church Treasurer also reviews the payroll report, taking particular note of new employees and any changes in pay rates.

PETTY CASH

Petty Cash drawer is kept in the fireproof church office safe for postage due to postman, usually less than $20.00. A running tally is kept of cash disbursed; it is replenished as needed from the General Fund.

CREDIT CARDS

Selected church staff have a credit card for their convenience to make church related expenditures. Not all pastors have it.

Credit cards issued to:

o Selected Pastoral Staff (some pastoral staff have elected not to have a card)

o Church Administrator

o Director of Music

o Director of Children’s Ministry

o Great Commission Coordinator

o Kitchen Director

o Youth Ministry Assistant

o Full-time Custodian

o Others as deemed appropriate by Church Administrator

When the monthly credit card statement is received, the individual card statements are distributed to the respective card holders and the card holders indicate an account number beside each of their purchases and also attach an invoice or receipt for each purchase. The card statement balance is paid each month, typically before the receipts are completed. Therefore, before payment, the Church Treasurer reviews the nature of the expenses for reasonableness. After the individual statements with receipts are submitted, the Church Administrator performs a detailed review of all but his own card and signs the card statement indicating review. The Church Treasurer performs a detailed review for the Church Administrator’s card and signs to indicate that review. The Church Treasurer also performs a high-level review of all other card supporting documentation.

Bank Statement Reconciliations

Financial Secretary [Financial Accountant] prepares monthly bank statement reconciliations for all bank accounts. Church Treasurer reviews reconciliation reports. Current year reconciliations and the prior 6 years are retained in storage.

Issues surrounding stale-dated checks are typically resolved (reissued as necessary), and none have been reported as unclaimed property.

Mutual Funds and Other Investments

The Christian Scholarship Fund is to hold investments perpetually with the income earned to be used for student scholarships for those attending Christian Schools (grade k through 12). The Scholarship Fund is invested in an allocation of equity and fixed income securities. The current investments include a Stock fund and a Bond fund with the American Funds Group held through [CHURCH NAME]’s Edward Jones account.

The Treasurer has authority provided by the Finance Committee to make transactions between the investment funds held through Edward Jones account and to transfer amounts to or from [CHURCHNAME] Checking for a variety of purposes including: additions to Cemetery Investments or transfers to checking for Scholarships, as determined by Finance Committee.

There is a separate Christian Scholarship Policy statement and Total Return or Spending Policy.

All investment income and loss (whether or not realized) is recorded in the books and records of the church monthly. Updated fair values for accounts are provided each month end by Edward Jones for this purpose.

BONDING

Church has a “liability” policy which contains a fidelity bonding of $50,000 per occurrence for any loss as a result of staff error in the cash handling or check disbursement function.

Count Team Responsibilities

Current Methodology/Other Notes

The main duty is to summarize the offering in such a way that there is satisfactory detail to prepare bank deposit and to capture donor information and donor restrictions.

Normal Process:

• Typically summarized in Finance office on Monday morning at a time mutually agreeable between count team and Count Team Leader.

• Two persons are required to take the offering from the safe. Count team leader keeps the combination.

• For efficiency purposes the offering is first sorted - between Attendance slips, Loose Cash, Loose checks, General Fund envelopes, split General & Facility Improvement Funds, and all other funds or receipts.

• Further separate envelopes by cash or check.

• Envelope check offerings are further separated between those that are designated to funds and those that are not designated.

• Envelope check offerings - checks should be separated from envelopes and care should be taken to put amount of check on envelope. Be careful of envelopes with multiple checks. Calculator tapes should be run of both the checks and the envelopes. These must agree. Write the type of donation on the calculator tape summarizing the checks, so it is not forgotten as well as initials of count team member who prepared the tape for each batch. The check tape should accompany the checks for deposit and the envelope tape accompanies the envelopes for use in verifying the recording of individual gifts by donors. Subsequently, the Financial Secretary [Financial Accountant] or the Officer Manager enters the donation into software which summarizes donor’s contributions. The calculator tape is used to double check this entry. After check and envelope tapes have been confirmed for accuracy, a count team member must pass them to another member to review all checks and envelopes. Check memo lines should be reviewed as well as confirming that the legal (written) amount agrees with the courtesy (number) amount on each check. Envelopes should be reviewed to ensure that all designations are as stated. The team member must then initial anything they have reviewed. Thus, both check and envelope tapes should have two different count team member initials on them.

• Envelope cash offerings – cash should be separated from envelopes and extra care should be taken to write on the envelope the amount of the cash in the envelope. After all cash is taken from envelopes an “Offering Cash Form” should be used to summarize the cash offering. This should be verified by another party. The envelopes should be summarized with a calculator tape and should accompany the envelopes for verifying the recording of individual gifts by the Count Team Leader.

• Loose offering are those donations received by check or cash which did not include an envelope number indicating the donor. Sometimes received as loose cash in offering plate, in pew envelopes and also from children’s Sunday School classes. Loose cash should be summarized using an “Offering Cash Form”. It should then be verified by a different person. (Double check pew envelopes in case the donor indicated that they forgot their offering envelopes – write name on envelope and include with the envelope offerings).

• Envelopes or checks designated for multiple funds or that include both cash and checks should be given to the Count Team leader.

• Donor confidentiality should be strictly observed.

• Special note - Envelopes and / or checks with hand written notations need to be recognized. Notations on the envelope or check take precedence over the color envelope or envelope designation. Example - a white General Fund giving envelope with “Radio” written on the envelope needs to have “Radio” written on the check in the memo line and given to the count team leader. “Split Fund giving”- any one check or envelope that designates more than one fund by notation. Count team member must make sure that the notation is written on both the envelope as well as on the memo line of the check, and then given to the count team leader for further processing.

• For purposes of internal control (both actual and perceived) two persons should always be present when there is unrestricted access to donations or cash. These two persons should never be family members.

• When complete, the cash sheet should be verified for accuracy by another member of the count team and initialed by that individual.

Count Team Leader Notes:

• Envelopes that include both cash and check or that include donor designations of different purposes / funds must be accounted for separately. The second page of the “Offering Report” page should be used for this purpose.

• Donations may only be accepted for Session approved funds or purposes. Contributions received that may not appear to be for Session approved purposes, should not be deposited but instead the Financial Secretary [Financial Accountant] should communicate with the donor, after discussing with Church Treasurer (if necessary).

• Empty envelopes – sometimes occurs. Financial Secretary follows up with the person to whom the envelope is assigned (call/letter/email) indicating that envelope was received empty.

• Deposit Slip Preparation – After all items are entered on the “Offering Report Page” the total currency and coins can be determined. These amounts are entered on the deposit slip.

• Special Offerings – Monies are only to be included in the special offering, if they are in the specially marked envelope, or the special purpose is noted in the memo line on the check. Undesignated loose offerings are always part of the general fund. It is easier to split out Special Offerings when they are known in advance and the Treasurer/Finance Committee Chairman will forward this information.

• Currently the approved fund designations are: General Fund, Facility Improvement Fund, Short Term Missions (when teams are collecting money), Radio Fund, Christian Education and Benevolence Fund. Also keep receipts for flowers in separate categories (this is recorded separately in the financial software, as a reduction of flowers expense).

• Forward the Short Term Missions prayer slips and donor information to the Great Commission Coordinator.

• Deposit bag sealed in presence of two or more count team members.

• Sealed Deposit Bag goes to Fulton Bank with deposit slip.

• Summary Offering Report to be distributed to Treasurer, Assistant Treasurer, Chairman of Finance Committee, Church Administrator and Financial Secretary [Financial Accountant].

[CHURCHNAME]

Annual Offering Count Team Member Service Agreement

The Session, the Finance Committee and the Pastoral and Administrative staff all appreciate your service to the body of Christ. Your service is an important part of the overall ministry of [CHURCHNAME].

God has blessed each one of us with different talents and abilities. We are sometimes called to use known abilities and at other times we are called to exercise abilities that stretch us. Whatever your individual abilities may be, we give thanks for your willingness to serve.

The handling of church offerings requires the balancing of two competing goals; accountability and confidentiality. The goal of accountability is to provide responsible care and internal control over the entrusted funds. Internal control requires that multiple people be involved in this process. (But everything should be done in a fitting and orderly way. 1 Corinthians 14:40; Now it is required that those who have been given a trust must prove faithful. 1 Corinthians 4:2)

The goal of confidentiality revolves around the need to keep donor information secure and safe. Count team members are entrusted to provide responsible care over church offerings. As count team members you must agree to a high level of confidentiality, both perceived and actual. Donor names, contribution amounts, giving patterns, giving designations and the like, must be kept strictly confidential. There is no reason for the church membership to even know that you are part of a team providing this service. Even seemingly insignificant information such as check insignias, ink color or tape used on envelopes should be safeguarded and not shared with any others, including the donor. Perception is often as important as actual confidentiality. (The Scriptures forbid the spreading of gossip, slander, and the betraying of confidences. Exodus 23:1; Leviticus 19:16; Proverbs 6:19, 11:13, 16:28, 20:19; and 2 Corinthians 12:20)

You, as offering count team members, help to provide a means to accomplish both of the goals of accountability and of confidentiality.

By signing below, you have read and understand the following:

▪ A count team member is to safeguard all information learned (keep to yourself) while serving as part of the count team. This would include, but not limited to contribution amounts, giving patterns, individual donor designations and donor numbers. Essentially anything learned during the counting process shall remain confidential.

▪ A count team member agrees to act as a steward of God’s resources during the counting process.

▪ A count team member agrees to willingly resign from the position if this confidence is broken for any reason.

▪ A count team member agrees to do their part to accomplish the goal of providing accountability to the offering count process.

▪ A count team member agrees to follow the principle of two, which requires that two persons are always present or in control of all uncounted offerings.

▪ You are a member of [CHURCHNAME].

If you have any questions or comments relating to your role in the offering count process, please contact the Church Treasurer or Financial Secretary [Financial Accountant].

Signature:________________________________

Printed:__________________________________

Date:____________________________________

Budget Control Procedures

A balanced budget is prepared each calendar year and submitted to Session for approval.

PURCHASES

There is no approval process required prior to the order or purchase. In addition, there is neither a policy which outlines those authorized to submit requests nor the limitations of such requests. Most purchases are made by staff members; however, volunteer ministry leaders make some purchases for their ministries and then submit receipts for reimbursement of these purchases.

PAYMENT REQUEST

A Purchase/Payment request is utilized for most orders and payments. This form details the item or service purchased or ordered along with the dollar amount. This form is submitted with an invoice and lists for which committee or church ministry product or service is to be utilized. Forms are filed by the Financial Secretary [Financial Accountant], along with the account number, date of payment, check number, and authorizing signature. When a form is not used, the information is noted on the face of the invoice for proper processing (i.e. typical for recurring expenses such as utilities, maintenance, etc.).

REVIEW OF EXPENDISTURES (INCLUDING BUDGET VS. ACTUAL COMPARISON)

Expenditure requests are compared to the budget prior to payment. The Treasurer is the primary check signer; items over $5,000 require an additional signer. See cash narrative for authorized signers. Approved expenditures are assigned to an account and the expenditures are also approved by the Church Administrator. Department heads have the opportunity to review expenditures and the comparison to budget on a monthly basis from the financial statements. In addition, the Finance Committee reviews the monthly expenditures to budget. After the Finance Committee approves the financial statements, they are also sent to Session.

Vendor Comparison Procedures

When outside help is needed or a purchase needs to be made, vendors are selected based on previous experience, personal experience, knowledge of the vendor from individuals in the church, and word of mouth. The Church Administrator currently has decision-making authority.

For expenditures over $5,000, the Church Administrator reviews the proposals, and depending on the situation, session committee members review them as well. At least 3 proposals are obtained. All proposals are filed by the church administrator, but no other information regarding the decision making process is documented. Purchase decisions of $5,000 or more funnel through the Church Administrator.

Quotes are obtained when session committee requests, regardless of whether it is budgeted or not.

There is no standard bid process or request for proposal (RFP) form.

Price negotiations occur with repetitive vendors every time a new item is purchased.

There is no approved vendor list.

There is no written policy regarding selecting vendors. Vendors are evaluated based on performance and price. Church members are used from time-to-time, but there is no preference given to them. Church members also provide references and recommendations for vendors of certain services and products.

Proof of insurance certificates are required from all non-member vendors doing work or services on the property. The Church Administrator keeps copies of all certificates.

There is no policy around contractor liens—none have occurred as of this point in time.

References are not required.

There is currently no initiative among departments to consolidate vendors to get volume discounts; however, the Church Administrator does a vast majority of the purchasing, so the opportunity for savings is not substantial.

Vendor Invoice Processing Procedures

Purchase orders are not currently utilized by the church.

When purchased items arrive at the church, they are directed to the requester.

When invoices arrive in the mail, the Financial Secretary [Financial Accountant] sorts them and directs them to the appropriate person for payment approval. When they are approved for payment, they are forwarded back to the Financial Secretary [Financial Accountant] where they are kept in a pending file until the next time checks are issued. There is a Payment Request form that will accompany the approved invoice, however, it is not required—it is acceptable for information to be hand-written on the invoice in order to assure proper bookkeeping.

Because there are no purchase orders issued or packing slips kept in most cases, there is no documented 2- or 3-way match to the vendor invoice to ensure the initial purchase was completely received and accurately charged. However, based on the size of the organization and the nature of the items purchased, we believe that approval of the invoice by the person who ordered the goods is sufficient indication of the completeness and appropriateness of the charge.

Check disbursements are typically processed one time per week. QuickBooks is the current financial software system - this system flags duplicate invoice numbers. Check are typically written on Wednesday, signed on Wednesday or Thursday by the Treasurer, and mailed on Thursday or Friday.

New vendors are set up in the system by the Financial Secretary [Financial Accountant].

There are typically no vendor disputes. In the event of a dispute, the Church Administrator would handle.

Bills are paid on time, usually before the due date, and discounts taken when offered and possible. Not many vendors offer a discount.

Invoices are marked with date paid and check number by the Financial Secretary [Financial Accountant]. Paid invoices are filed alphabetically by year, and kept in storage for 7 years.

Where appropriate, invoice stubs are enclosed with the check, to ensure proper receipt application by the vendor.

Canceled checks information is imaged by the bank—hardcopies are not physically received back from the bank or filed in storage.

There are security features on the preprinted check stock, to prevent such things as forgery, counterfeiting, alteration, erasure, toner removal and photocopying.

When new check stock arrives, the Church Administrator and the Financial Secretary [Financial Accountant] check to see that all checks ordered have been received. They also verify that the first check number in the new delivery is in direct numerical sequence from the last check number in the last delivery.

The church does not issue blank checks (i.e. a check with “payable to” completed, but no dollar limit).

We currently use ACH payments for two transactions, both are payments to those for whom depositing a check at a bank location is a hardship. One such transaction is to a retired missionary, and the other is periodic honorarium to an individual who works with our refugee ministry, but spends long periods of time outside of the United States The paperwork for the ACH transactions is completed similarly to that for check transactions. However, rather than producing a check, the Financial Secretary [Financial Accountant] sets up an ACH transaction using the online banking site from the church’s bank. This ACH requires approval from a 2nd party (typically the Church Administrator but, in his absence, the Treasurer). Approval is required on the bank’s website, as well as to the bank’s anti-fraud department.

Credit Card Payment Procedures

Credit card are issued to church employees as deemed necessary by Church Administrator. Each party receiving a card fills out a Credit Card Application. Card requests and credit changes are completed by Church Administrator.

PURCHASES

There is no prior approval process for credit card purchases. Cash withdrawal privileges are restricted/withdrawn on all cards.

TRANSACTIONS

Purchases are made and receipts are retained until the end of statement period. Each card holder receives an individual detailed statement from the card issuer. Card holders attach receipts to statements with proper account coding and then submitted with expense forms to the Financial Secretary [Financial Accountant] on a monthly basis. Because of timing, the credit card invoice is typically paid before all of the supporting documentation is received from the individual card holders. However, prior to payment the Treasurer reviews the statement for unusual vendors and/or amounts and inquires as deemed necessary. After card holders submit the receipts, the documentation is reviewed by both the Church Administrator and the Treasurer (similar to the process for any other purchase).

USERS

Users sign an agreement when they are issued a card.

REIMBURSEMENTS OF EXPENDITURES USING PERSONAL CARDS

On occasion, personal cards have been used for business purchases if no business card has been issued. Those purchases are submitted for reimbursement (typically through the monthly expense report process, although can be submitted more frequently if needed).

See also Cash Handling Procedures.

Financial Statements and Reporting

Responsible Parties and current designee:

Church Administrator: [NAME]

Financial Secretary: [NAME]

Office Manager: [NAME]

Treasurer: [NAME]

Assistant Treasurer: [NAME]

President: [NAME]

Leadership and Vision

Committee Chairman [NAME]

Finance Committee

Chairman [NAME]

ACCOUNTING SOFTWARE

The financial software system is currently QuickBooks Pro. Access to QuickBooks is limited to those employees who need to perform financial transactions. The Financial Secretary [Financial Accountant], Treasurer, Assistant Treasurer and Church Administrator all have independent user names and passwords. The system is networked and can be accessed from multiple PCs with user access.

Financial Secretary performs the majority of system inputs within the period incurred. Transaction entries to QuickBooks are identified by signed-on user.

The Church Administrator serves as system administrator. System back-ups are done daily to the Cloud.

Monthly financial statements are prepared by the Financial Secretary [Accountant], reviewed by the Treasurer, and then distributed to the Finance Committee by the Treasurer. The financial statements are reviewed and approved in the monthly Committee meetings. Various other reports are also generated as required or requested. Most of the budget is compiled by the Treasurer and the Church Administrator.

FISCAL REPORTING

The church reports on a calendar year. (by Session [DATE])

ACCOUNTING METHOD

The accounting method employed by the Church is a modified cash basis of accounting. Revenue and disbursements are recorded on the cash basis of accounting. Land, Furniture and Equipment was recorded for the amounts that were funded with debt. Non-debt capital expenditures were recorded as expenses before 2008. In 2009 and subsequent land, furniture and equipment have been capitalized at the end of each year. No depreciation is recorded.

Mutual Fund investments are recorded at fair market value and the change in value and interest/dividends are recorded monthly.

FUND ACCOUNTING

Donor purpose designations are tracked using Fund Accounting. Donor restrictions and purpose satisfactions are reported and tracked on the monthly financial statements prepared in Excel. QuickBooks revenue and expense account totals match up with applicable fund purposes. These carry over to the Balance Sheet by fund prepared in Excel.

CONTRIBUTION REPORTING

Financial Secretary [Financial Accountant] and/or Office Manager record donor contributions in the Church Management software.

Giving Statements are provided to donors at the end of each calendar year (or more often if specifically requested).

The Assistant Treasurer reconciles accounting software contributions to overall church management donor contribution fund/purpose records on a quarterly basis.

[CHURCHNAME] shares IRS group tax exemption with the Presbyterian Church in America.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download