Mattoon First United Methodist Church



Financial Policies First United Methodist Church MattoonFunds: the church treasurer shall maintain the following funds. Additional funds may be added by the finance committee. **(in a revision of these policies, the definition of each fund and the rules for each fund should be spelled out) General fundBenevolence fundEndowment fund(s)Benevolence Program Building capital Building maintenanceTrustee fundMemorial fund (should be dispersed into another fund after 6 months)Capital Projects fundVarious events and groups fundsBudgetThe budget shall set realistic goals and expectations (anticipated income and anticipated expenses) for the yearThe budget shall provide a benchmark for monitoring the income and expenditures throughout the yearThe fiscal year for the congregation shall be January 1 through December 31The finance committee shall present to the church council the coming year’s recommended budget at least 75 days in advance of the new year (October 15.) The committee shall also notify the church council of requests they received but denied or modified.The finance committee shall provide a 60-day period for all groups and individuals an opportunity to make budget requests (along with supporting rationale) (starting August 1 of the previous year.) They shall then recommend a budget (to the church council,) based on these requests. Internal ControlsThe same person will not have responsibility for more than one of the following functions:Counting and recording the offering Writing checksHandling discrepancies reported by contributorsReconciling the bank statements with the record books/conducting the annual audit for the annual conferenceAt least two non-related persons shall have custody of the Sunday offerings until they are deposited in the bank (or night deposit box.) If the offerings are to be counted at another time, at least two persons shall go to the bank and have custody of the offering until it is counted and deposited.All money shall be deposited promptlySundays: within one hour of the end of each worship serviceWeekdays: by the end of each workdayIn the event that there is more than $100 in cash contributed during the week, that money shall be deposited in the bank in a timely mannerEvents: at the end of the day of the eventAll payments must be made by checkAll checks must have two signaturesA book of receipts shall be maintained in the church office for money which is received other than the Sunday offeringsThe annual conference provides a fidelity bond for all those handling church funds.Securities, notes, jewels, coins, and other valuables belonging to the church shall be kept in a safety deposit boxThe treasurer may only write checks for items that have been properlyBudgeted or approved by the finance committee. Requests for payment should be accompanied by a voucher, statement, receipt, or itemized billEach budget item shall be assigned an officer or committee with authorization to provide oversight and give approval for payoutMoney collected and spent for events (i.e. youth group events) shall be carefully recorded on the “Event receipts and expenditures form” and submitted to the finance committee at the end of each month. All contributions to the church shall be acknowledged (to the contributor) at least quarterly by the financial secretaryNo one may raise funds within the congregation without the approval of the finance committeeAll designated benevolences must be remitted by the end of each monthDuties Offering depositorsSunday offerings shall be secured by two persons (unrelated) who shall both stay with the offerings at all times until it is counted or deposited in the bank night deposit box. When retrieving offerings from the bank, these same two persons shall accompany it until it is counted. Counters/RecordersSunday offerings shall be counted by two persons (unrelated) and recorded in the contributions module of the financial software program. (May be the same two persons as the offering depositors.)Financial Secretary (income administrator)Shall appoint, schedule, and supervise offering depositors and counters/recorders. (May also serve in these capacities, subject to the rule in 3.a above)Report monthly to the finance committee the current income and income projections, flagging any problems or concerns or increasesShall provide all contributors a quarterly statement of contributions and receive all correspondence and communication regarding irregularities or accounting differences)Discrepancy administratorIf a contributor thinks that the quarterly report is incorrect, the discrepancy administrator (not the financial secretary or the counters or the treasurer) shall inquire about the situation and resolve it. This person should be designated by the finance committee and direct contact information with this person shall be provided on the quarterly statements.TreasurerWill set up funds, bank accounts, and categories accounts as approved by the finance committeeWill set up the budget in the software as approved by the finance committeeWill write checks as authorized (see rule 3.i) and record them in the expenditures module of the financial softwareMay be one of the signatories on the checksReport on a monthly basis to the finance committeeTransactions by categoryFund balancesBudget comparisonCheck signersTwo unrelated persons much sign each check after verifying that the payout is approvedFinance committee (and chair)Collects budget requests and assembles the budget and submits the budget to the church councilWorks with Stewardship and Endowment committees to secure ample funding for the church and its ministriesReceives reports from the treasurer and the financial secretarySupervises all people involved in church finances and assures the implementation of the financial policies for the churchPromote electronic givingEstablish checking and savings accounts and determine how each will be usedPastorThe pastor shall be subject to all the checks and balances listed in this policy manualChurch secretaryThe church secretary shall receive and process all the mail and all contributions and invoices received, other than the Sunday offeringRoute statements, vouchers, and invoices to the church treasurerA receipt shall be made out for all contributions received and the receipts shall be handed over to the finance secretary for recording in the contributions module of the financial softwareAuditorsShall annually fill out the audit forms provided by the annual conference Shall audit the records of all the organizations of the churchShall annually make recommendations for improving proceduresReports and formsMonthly treasurer’s reportTransactions by categoryBudget comparisonFund balancesVoucher form for paymentReceipt form for money received other than the Sunday offeringEvent receipts and expenditures formSoftware used in record keeping and passwords shall be approved and assigned by the finance committee, in compliance with the United Methodist Book of Discipline ................
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