Church Finance Administration

Church Finance &

Administration

East & North District Training February 21, 2016

Central Texas Annual Conference Of The United Methodist Church

Agenda

? Authority & Secrecy ? Internal Controls ? Budgets & Reporting ? Tax Exempt Status ? Employment Taxes ? Tax Reporting ? Audits ? Checks & Balances ? Pastoral Compensation

? Accountable Reimbursement Accounts (ARP)

? Job Descriptions ? Financial Secretary ? Treasurer ? Chair/Finance Committee

? Record Retention ? Resources ? GCFA Apportioned Fund

Descriptions

? Pastors Discretionary Accounts

? CMG...aka Apportionments

Central Texas Annual Conference Of The United Methodist Church

Ways We Might Be Helpful in Finance & Administration

? Clergy and lay benefits ? Insurance and retirement ? Creating a church budget ? Church finance internal controls ? Stewardship Ideas ? Financial Policies

Central Texas Annual Conference Of The United Methodist Church

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Authority & Secrecy

? Per BoD (? 244.3), Pastor is "CEO" of church

? "The pastor shall be the administrative officer and, as such, shall be an ex-officio member of all conference, boards, councils, commissions, committees, and task forces, unless otherwise restricted by the Discipline."

? Pastor is "member" of all committees except Trustees and SPRC ? As such, Pastor has full access to all information for committees and sub-committees

including Stewardship

? BoD (? 722) requires meetings to be open as often as possible

(except SPRC)

? Financial statements & accounts of all church entities available to Church Council via annual audit

? Details of financial giving should be shared only with those that have "a need to know"

? Pastor ? Financial Secretary ? Sometimes members of the Finance Committee (to facilitate a capital campaign for example)

Central Texas Annual Conference Of The United Methodist Church

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Internal Controls

5

Internal Control

Protection of Your Church's Money

Internal controls provide the following benefits:

? Accountability ? Protects church's assets ? Promotes accuracy of financial records ? Promotes confidence in givers ? Helps prevent fraud

Central Texas Annual Conference Of The United Methodist Church

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Internal Control

Protection of Your Church's Money

? Three basic types of financial activities

o Authorization of transactions o Recording of transactions o Custody of assets

? Each of these activities should be performed by different unrelated individuals

Central Texas Annual Conference Of The United Methodist Church

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Internal Control

Best Practices

? Prepare accounting procedures manual

? Anyone who handles church funds bonded or insured

? Bank statements reconciled monthly

? Detailed monthly reports reviewed by finance committee

? Financial reports audited annually

Central Texas Annual Conference Of The United Methodist Church

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