The church, in exercise of its religious purposes and mission, has established a Bible Fund to provide resources for the purpose of spreading Gods word.
The church welcomes contributions to the fund.
The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider how to handle recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.
Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.
The church recognizes that the bible ministry is a vital part of the church’s purpose and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.
Ensure dollar amount on deposit slip matches dollar amount on offering form
If any discrepancies are found annotate on original offering form (preferably in red ink for easier tracking of changes)
If crossing out item use only one line through and initial (sample INT)
Report all discrepancies to council
If any loose offering of a donated check is for $250 or more, treasurer will give bookkeeper information for issue of receipt to donor with end of year donor statement or sooner if requested by donor.
OTHER CONTRIBUTIONS / DONATIONS:
CONTRIBUTIONS MAILED TO THE CHURCH
The Treasurer shall receive contributions mailed to the church office. If the amount is cash (which is discouraged), the amount (but not the donor name) is recorded before the presence of one other witness. The cash or check is then placed in a safe location and then placed in the next Sunday’s offering plate.
If the offering is restrictive in any way, other than currently approved fund accounts, the check will be held until the next scheduled council meeting to discuss and ensure it meets the designated contributions policies.
If the contribution meets the mission of the church: the donation will be included in the following Sunday morning offering.
No gift will be accepted which is unduly restrictive or designated for a purpose outside of the mission of the church. It will be returned with a letter stating why it was not accepted.
CONTRIBUTIONS PERSONALLY DELIVERED TO THE CHURCH
Donations are given to the Treasurer and the above procedures are followed.
CONTRIBUTIONS FROM BIBLE STUDIES, SUNDAY SCHOOL, OR OTHER GROUPS WITHIN THE CHURCH
General contributions should be given through the Sunday morning offering
Contributions that have been approved by council for a designated fund may be deposited with any Sunday offering and will be monitored by the council to insure the group is in compliance with the church policies.
DEPOSITS:
No donor names are to be put on Deposit slips (use check numbers for privacy).
Money is deposited timely; at least weekly.
Deposit book is to be compared to the bank statements it pertains to by finance committee.
MONTHLY:
TRANSFER FUNDS FROM CHECKING TO SAVINGS:
Using online banking or at bank location:
Transfer funds in excess of $1,200.00 from Bus Now to Green Checking
Print confirmation form or transfer slip, give to bookkeeper for input into QB
Confirmation form or transfer slip will be kept in checks folder of the month the transfer was made
PAYMENTS
*** No checks will be written without a complete, and approved by council, disbursement form ***
***No taxes will be reimbursed/ paid***
DISBURSEMENT FORMS
BUDGETED:
Normal Administrative Pre approved Invoices (to be paid upon receipt by Treasurer): If no issues; the form is reviewed by finance committee and approved by council, completed forms are given to bookkeeper for input into QuickBooks and filed.
Kitchen reimbursements(used for individuals only):
The Treasurer may write out checks up to $25.00 a month for authorized persons purchasing kitchen items (disbursement forms and supporting documents are still required).
Verify receipts to ensure taxes are not paid and/or are not reimbursed to individuals.
Reviewed and approved by Finance Committee.
If monthly amount is over $25.00
Ensure council is aware of the request.
The Council approves purchase and amount.
If approved: give to Treasurer and for payment.
PRE-APPROVED:
REIMBURSEMENT ACCOUNTS: These purchases are for use in the normal day to day operation of Church (kitchen supplies, postage, envelopes, etc.) up to the budgeted amount approved by council.
Reviewed by finance committee and approved by council
Completed disbursement forms are given to bookkeeper for input into QuickBooks and filed.
Requests for purchases that are pre-approved by council will have the disbursement form filled out and placed in pending file.
When purchase has been made, original receipts/invoices will be attached to form prior to payment being made
NON-BUDGETED:
Approved forms received from Finance Committee/Council will be paid in a timely manner; completed forms are given to bookkeeper for input into QuickBooks and filed.
TRAVEL: See Travel policy.
BENEVOLENCE: See Benevolence policy
bank statements:(currently one is mid-month and one end of month)
Bank statements are to be open by the Bookkeeper and after reconciliation given with reports to Treasurer and/or Finance committee for review
Reports:
Verify items are categorized correctly
Verify all reports are current
Verify all reports listed are included for council meeting
Balance Sheet (Date: last month)
Contributions (Date: last month) this report is also used to figure AFLC 10% tithe of general donations.
Optional: write AFLC 10% and $ amount on report
Transaction Detail by Account (Date: last month)
Ensure checkbook is up to date
For finance committee to review against the treasurer checkbook
Temporary Restricted-Designated by Class (Date-Custom-use dates: 1/1/2012 through end of last month) this report shows funds still in accounts and is used for council tracking and approval prior to treasurer writing checks.
If unclear where funds go-request report to get specific information
Unrestricted Funds & Expense-Prev Year Comparison (Date-Custom-use dates: beginning of current year through end of last month, such as 1/1/13 through 3/31/13)
Budget vs. Actual (Date: This Fiscal Year:)
INTERNAL TRANSFERS:
Review reports to ensure subaccounts have correct fund amounts in council approved sub account funds
REVIEW:
No later than the Sunday prior to Council meeting all files will be placed in the church inbox (or emailed), for the finance committee to review.
QUARTERLY:
Quarterly report for all employees, will be email, hand deliver or mailed every quarter to any employees
These reports are created by the bookkeeper.
END OF YEAR:
Donor statement:
End of year donor statements completed by bookkeeper and reviewed by treasurer and/or finance committee. If no issues they are mailed, emailed, or hand delivered no later than January 31st.
REPORTS:
Review the following reports with finance committee then give to the council (email reports to members who have email)
Balance Sheet (Date: Last Fiscal Year)
EOY-Summary-council-Contributions (Date: Last Fiscal Year)
EOY-Designated Funds (Restricted)-Expense detail (Date: Last Fiscal Year)
EOY-NON Designated Funds-Transaction Detail By Account (Date: Last Fiscal Year)
EOY-Statement of Income & Expense (Date: Last Fiscal Year)
Pastor Transaction Detail by Account (this may be a spreadsheet)
EOY-1099’s if needed
Verify all non-employees performing services (Guest speaker, Janitor, etc.)
Review report for those who receive $600.00 or more
Anyone who meets the above will need a 1099-misc.
TAX FORMS:
I 9’s for all employees
W-9’s:
Check with finance committee to ensure a W-9 is given and returned for all payments concerning income (Independent contractors such as Guest Speakers, Janitor, etc.) and are kept in file.
1099-misc.:
Ensure all dollar amounts match QuickBooks reports for all independent contractors
Upon council approval bookkeeper will fill out forms online and mail, email or hand deliver to employee no later than January 31st.
Complete Michigan Department of Treasury Form 165
W-2 & W-3:
Ensure all dollar amounts match QuickBooks reports.
Upon approval of the council
Forms shall be mailed, emailed or hand deliver to employee by January 31st
And the Social Security Administration no later than February 28th.
Are monthly financial statements prepared on a timely basis and submitted to the church board or appropriate person or committee?
Do the financial statements include all funds (unrestricted, temporarily restricted, and permanently restricted)?
Are account balances in the financial records reconciled with amounts presented in financial reports?
CASH RECEIPTS
General
Are cash handling procedures in writing?
Are procedures established to care for offerings and/or monies delivered or mailed to the church office between services?
Offering counting for Churches
Are at least two unrelated members of the counting committee present when offerings are counted?
Do money counters verify that the contents of the offering envelopes are identical to the amounts written on the outside of the envelopes?
Are money counters rotated so the same people are not handling the funds each week?
Are donor-restricted funds properly identified during the process of counting offerings?
Depositing of funds
Are all funds promptly deposited? Compare offering and other receipt records with bank deposits.
Are all receipts deposited intact? Receipts should not be used to pay cash expenses.
Restricted funds
Are donations for restricted purposes properly recorded in the accounting records?
Are restricted funds held for the intended purpose(s) and not spent on operating needs?
DONATION RECORDS/RECEIPTING
Are individual donor records kept as a basis to provide donor acknowledgments for all contributions?
If no goods or services were provided (other than intangible religious benefits) in exchange for a contribution, does the receipt include a statement to this effect?
If goods or services (other than intangible religious benefits) were provided in exchange for a contribution, does the receipt inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of the amount of any money and the value of any property contributed by the donor over the value of the goods and services provided by the organization, and provide the donor with a good faith estimate of the value of such goods and services?
Although not required by the IRS, has your organization adopted a policy of issuing an annual contribution report to donors listing at least each week’s donations, if not each donation?
Are the donations traced from the weekly counting sheets to the donor records for a selected time period by the audit committee?
CASH DISBURSEMENTS
Are all disbursements paid by check?
Is written documentation available to support all disbursements?
Are pre-numbered checks used? Account for all the check numbers including voided checks?
BANK STATEMENT RECONCILIATION
Are written bank reconciliations prepared on a timely basis? Test the reconciliation for the last month in the fiscal year. Trace transactions between the bank and the books for completeness and timeliness.
Are the bank reconciliation reports signed and dated?
Are there any checks that have been outstanding over three months?
SAVINGS AND INVESTMENT ACCOUNTS
Are all savings recorded in the financial records? Compare monthly statements to the books.
LAND, BUILDINGS, AND EQUIPMENT RECORDS
Are there detailed records of land, buildings, and equipment including date acquired, description, and cost or fair market value at date of acquisition?
Was an equipment physical inventory taken at year-end?
Have the property records been reconciled to the insurance coverage’s?
ACCOUNTS PAYABLE
Is there a schedule of unpaid invoices including vendor name, invoice date, and due date?
Are any of the accounts payable items significantly past-due?
Are there any disputes with vendors over amounts owed?
INSURANCE POLICIES
Is there a schedule of insurance coverage in force? Reflect effective and expiration dates, kind and classification of coverage’s, maximum amounts of each coverage, premiums, and terms of payment.
FEDERAL REPORTING OBLIGATIONS
Does the organization file on a timely basis the following forms if applicable?
For as the body without the spirit is dead, so faith without works is dead also.
Hebrews 6.10 (NIV)
God is not unjust; he will not forget your work and the love you have shown him as you have helped his people and continue to help them.
Purpose: The benevolence policy is a tool to help the church comply with increasing federal and state government guidelines in operating nonprofit organizations. This policy is intended to help the church avoid conflicts by providing well-written and understandable content based in biblical handling of the financial resources God has provided.
Adoption and Amendments: The Benevolence policy is not included in the church constitution or by-laws and can be amended, deleted or added to at any regularly scheduled council meeting. The church body will be informed of changes made to the designated benevolence fund policy.
A copy of the benevolence policy will be given to all council members, the treasurer and the book keeper and also kept in a prominent location of the church.
Guidelines:
The church, in exercising our religious purposes, has established the benevolence fund to assist persons in financial need. The church welcomes contributions to the fund. The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The council may consider recommendations from anyone, but in no event is the council bound in any way to honor the recommendations. Donors will not be permitted to recover a contribution on the grounds that the committee failed to honor the donor’s recommendation.
The church recognizes that planning for future needs is a practice of good stewardship and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general fund of the church.
The council will record the required Internal Revenue Service documentation for benevolence requests. The following documentation should be recorded for accurate record-keeping:
A complete description of the assistance
The purpose for which the aid was given
The objective criteria for disbursement
How the recipients were selected
The name, address and amount distributed to each recipient
Any relationship between recipient and officers, or key employees or substantial contributors to the church.
The assistance is always based on the availability of benevolence funds.
The church will help via payments of bills to 3rd party that will provide receipts for expenditures (IRS required for over £75.00)
The church will void and return all checks designated to a specific individual or family. Please give to specific individuals or families directly.
The types of help that will be provided by the benevolence fund include, but are not limited to, payments of water, gas or medical bills but are not limited to those categories. Once an individual or family has met the annual limit up to $500.00 of financial assistance they are no longer eligible. However the church reserves the right to exceed the $500.00 annual limit in special circumstances to be approved at a legally called congregational meeting.
The information is confidential and will be stored securely.
REQUEST FORM
The Church is making every effort to live for and be surrendered to Christ and the teachings of the Bible. It is our privilege, purpose, and passion to share about Jesus Christ primarily throughout the local area. Please give your request to an Elder, Benevolence Committee, Church Council member or place in a sealed envelope in the offering plate.
Note: Information given on this form is confidential and will not be disseminated to anyone other than the Elders, the Benevolence Committee members, and the Church Council, without the expressed written or verbal consent of the requestor.
Complete this form to verify all required information has been received and approved prior to writing check. After check has been written give this form to bookkeeper to put into QuickBooks and file. Supporting documents are confidential and are kept in the locked file cabinet at the church and will be maintained as required by the IRS.
Name
Address
Relationship between recipient and members, officers or trustees
Need of financial assistance
Purpose-How does this further Redeemer Free Lutheran Church mission: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Manner in which selected:
The church council has reviewed the request for benevolent funds to determine that there is a need and researched to verify if the recipient has/has not received assistance in the past. Based on the information available, and in compliance with the church policy, the council has voted on this amount.
***Every form that is used for input to QuickBooks will have a “Q” in upper right hand corner along with any needed notations to show items have been input***
WEEKLY:
OFFERING:
Input contributions into QuickBooks using;
“Create Sales Receipts” function
Using the Copy of the weekly offering form with the Master envelope list with names
Enter information “Customer Job” –these are the donors-: pick name from list (start typing last name)Insure date is correct
Type in check number or cash in boxIn “Item” box pick correct item (unrestricted, 1st Sunday of Month, AFLC Special, etc.)In “Fund” box pick correct fund (Admin, Designated, or General)
In “Amount” box type in amount
**If donation is for more than one “item” ensure each is recorded**
Upon receipt from the Treasure of any corrections to the original weekly offering form;
Make any/all corrections to the sales receipts stating why change was made in memo.
Verify deposit date using online banking, date of deposit written on original offering form or deposit book from treasurer.
Click on Record Deposits; ensure “Deposit to” account, “Date”, and “deposit Subtotal” boxes are correct.
Back up QUICKBOOKS
FILE:
By Month then subfolder
Currently subfolders are;
offering by week
checks numerically
reports/statements by date
MONTHLY:
TRANSFER FUNDS FROM CHECKING TO SAVINGS:
Using transfer slip from treasurer or online confirmation:
transfer funds in from Bus Now to Green Checking
Use Banking tab:
Transfer funds
From account-BUS NOW
To account: GREEN CK
Keep transfer slip/conformation in checks folder
Disbursement forms:
Completed forms are received from the treasurer
Input data using the “Write Checks” function.
**Exception: All payments (including reimbursements) to employee’s (Pastor) must be written from Employee tab/ Pay Employees**
Ensure:
Checks are written out of the Bank Account assigned (Bus. Now, Kitchen, Annual Pastor Conference, etc.),
Check number is correct
Date check written is correct (Not date entered in QB’s)
Pay to the Order of is correct -donations given are to “other” not “vendor or customer”
Balance Sheet: Total in account (BUSINESS NOW CHECKING AKA CHECKING or GREEN BUSINESS Checking AKA SAVINGS)
Attach reports to statements for Treasurer and Finance Committee review
INTERNAL TRANSFERS:
BANK SUB ACCOUNTS (kitchen, pastor conference, furnace, etc.)
**Total Fund amount and how they are to be used is provided by Council**
When funds are depleted, and you need to add:Use Banking tab:Transfer fundsFrom account-BUS NOWTo account: appropriate sub account
Date should be 1st of month
Reconcile books
Ending balance same as beginning balance
Print report for treasurer and finance committee
Reports:
Using the Reports tab/Memorized Reports
Informational report for bookkeeper:
Unrestricted Income & Expense by Class (Dates tab: last month)
Verify items are categorized correctly, if designated shows up on this report edit as needed
Print for council.
Run and Print the following reports for council (email reports to members who have email)
Balance Sheet (Dates tab: last month)
Contributions (Dates tab: last month) this report is also used to figure AFLC 10% tithe of general donations.
Optional: write AFLC 10% and $ amount on report
Transaction Detail by Account (Dates tab: last month)-for comparison to the treasurer checkbook
Temporary Restricted-Designated by Class (Dates tab-Custom-use dates: 1/1/2012 through end of last month) this report shows funds still in accounts and is used for council tracking and approval prior to treasurer writing checks.
If unclear where funds go-use report to get specific information and write it on report.
Unrestricted Funds & Expense-Prev Year Comparison (Dates tab-Custom-use dates: beginning of current year through end of last month, such as 1/1/13 through 3/31/13)
Budget vs. Actual (Dates tab- This Fiscal Year: MAKE SURE YOU RUN THIS ON THE LAST DAY OF THE MONTH or before any new transactions are done)
REVIEW:
No later than the Sunday prior to Council meeting all files will be placed in the church inbox (or emailed), for the finance committee to review.
Back up QUICKBOOKS
Keep back-up from prior month in church file drawer.
QUARTERLY:
Print quarterly report for all employees, email, hand deliver or mail every quarter.
If requested print copy for treasurer and/or finance committee
END OF YEAR:
Donor statement:
End of year donor statements completed by bookkeeper and reviewed by treasurer and finance committee. If no issues they are mailed, emailed, or hand delivered no later than January 31st.
If loose offering of any donated check is for $250 or more treasurer will give bookkeeper information for issue of receipt to donor
Report/Memorized Reports/Customers/Year-Unrestricted-Contributions by Customer Detail
Dates: Last Fiscal Year
Check to make sure all names and all deductible items are included, edit as needed
Print settings-Page Breaks-check both smart and after each major grouping
REPORTS:
Run and Print the following reports for council (email reports to members who have email)
Balance Sheet (Dates tab: Last Fiscal Year)
EOY-Summary-council-Contributions (Dates tab: Last Fiscal Year)
EOY-Designated Funds (Restricted)-Expense detail (Dates tab: Last Fiscal Year)
EOY-NON Designated Funds-Transaction Detail By Account (Dates tab: Last Fiscal Year)
EOY-Statement of Income & Expense (Dates tab: Last Fiscal Year)
Pastor Transaction Detail by Account (this is easier to read if you make a spreadsheet)
EOY-1099’s may be needed
Verify all people performing services (Guest speaker, Janitor, etc.)
modify report/filter tab/ name/ multiple names
Print
TAX FORMS
Draft by Bookkeeper, reviewed by Treasurer and Finance Committee, approved by Council, submitted by bookkeeper and filed.
I 9’s for all employees (one time if US citizen)
W-9’s for anyone receiving income (one time for each individual)
1099-misc. for those needed according to current IRS regulations (yearly)
Spending vs. donations is in proportion to each other (if net income is a negative number spending is higher than donations)
Monthly Contributions (columns by week)
Date: last month
AFLC 10% (tithe) Charitable Contribution- taken from the General Unrestricted total. (written on disbursement form & AFLC transmittal form)
Temporary Restricted-Designated by Class Shows funds still in designated accounts (this money is from individuals to specific area/people and must be used towards-not over- amount church gives)
Date-Custom: 1/1/2012 through end of last month
Disbursement forms for allocated funds verified (some of these will be written on AFLC transmittal form as well)
Unrestricted Income & Expense by Class (General/Admin)
Date: last month
Income/Expenses categorized correctly
Unrestricted Funds & Expense-Prev Year Comparison
Unexplained variations brought to council’s attention
Budget vs. Actual
Date- This Fiscal Year
Unexplained variations brought to council’s attention
Transaction Detail by Account
Date: last month
Compare with bank statements
Verify all transfers (Internal and bank to bank)
ALL DISBURSEMENT FORMS
**Give special attention to requests from treasurer and other officers**
***No checks will be written without a complete, and approved by council, disbursement form***
All areas filled in
Supporting IRS approved documents attached
reimbursements include original invoice/receipt(s)
donations to organizations include letter requesting assistance
bills include invoice
Taxes not paid and/or are not reimbursed
Approved by councilsigned forms with invoices/receipts given to Treasurer to write check.
(Blue) NON-BUDGETED EXPENSES: (above “ALL Disbursement” and also the following)
If check has been written prior to council approval notify council
Payment request contains information to provide an explanation of the expense
Request containing insufficient information, or missing information or signatures returned to the requestor for completion.
The Council will vote on request
If approved: signed form and receipts are given to Treasurer to write check.
Disallowed forms returned to requestor, stating council reason.
(Not blue) BUDGETED (Pre-Approved): (above “ALL Disbursement” and also the following)
Recurring Administrative Invoices (Pink forms-Utilities & White form-Josiah Venture):
If amount is questionable: Ensure Council is aware of the issue.-Council will decide on action to take
Kitchen reimbursements (used for individuals only):
*The Treasurer may write out checks up to $25.00 a month for authorized persons purchasing kitchen items (disbursement forms and supporting documents are still required).*
Verify disbursement form to ensure taxes are not reimbursed to individuals.
If monthly total is over $25.00
Ensure council is aware. Council will vote on action to take
Travel:
Complete worksheet attached to disbursement form with receipts.
Ensure taxes are not reimbursed.
See Travel policy for additional information.
Benevolence: See Benevolence policy (3 page document)
BANK STATEMENTS:
Beginning, Ending balances & Dates match QB reports
Review against Reconcile Report and/or Transaction Detail Report.
Checking: Mid-month
checks.
deposits
transfers
Electronic Fund Transfers (EFT)
interest
Unexplained transactions addressed by council
If all items match: Write “OK” sign and date statement
Savings: End of Month
deposits
transfers
Electronic Fund Transfers (EFT).
interest
Unexplained transactions addressed by council
If all items match: Write “OK” sign and date statement
OFFERINGS:
Offering forms signed by 2 (two) persons, not the same 2 people every Sunday.
DEPOSITS:
Totals on Weekly Offering forms match deposited amounts on Monthly Contribution Report
Discrepancies on offering forms are brought to Councils attention
END OF YEAR Review:
REPORTS:
Balance Sheet
Date: Last Fiscal Year
EOY-Summary-council-Contributions
Date: Last Fiscal Year
EOY-Designated Funds (Restricted)-Expense detail
Date: Last Fiscal Year
EOY-Statement of Income & Expense
Date: Last Fiscal Year
EOY-NON Designated Funds-Transaction Detail By Account
Date: Last Fiscal Year
Pastor Transaction Detail by Account (book keeper may give spreadsheet for easier review)
DONATION STATEMENTS
End of year donor statements given no later than Jan 31st
W-9’s
Given and filed for all payments concerning income (Janitor, Guest Speakers, etc.) and are kept in file.
W-2 & W-3
Dollar amounts match QuickBooks reports.
1099-misc.
All independent contractors are tracked (W-9 in file)
Dollar amounts match QuickBooks reports.
MI Form 165
Michigan Department of Treasury filled out correctly
Internal audit:
Schedule internal audit,
Audit committee
Treasurer
Bookkeeper.
If any issues, try to resolve them, if unable to resolve; bring items to council’s attention.
**Give special attention to requests from treasurer and other officers**
***No checks will be written without a complete, and approved by council, disbursement form***
All areas must be filled in
Supporting IRS approved documents must be attached
reimbursements must include original invoice/receipt(s)
donations to organizations must include letter requesting assistance
bills must include invoice
Review receipts to ensure taxes are not paid and/or are not reimbursed/paid by church
Reviewed by finance committee and approved by council.
If approved: signed forms with invoices/receipts are given to Treasurer and the check is written.
NON-BUDGETED EXPENSES:
If it is not a budgeted item and/or has not been preapproved by council:
Payment requests should contain as much information as possible in order to provide an explanation of the expense and a reason that the expense was incurred.
Request containing insufficient information, or missing information or signatures will be returned to the requestor for completion.
If all information is provided-Ensure Council is aware of the request
The Council will vote on request
If approved: signed form and receipts are given to Treasurer and the check is written.
BUDGETED:
Recurring Administrative Invoices:
Normal invoices are paid upon receipt by Treasurer
If amount is questionable:
Ensure Council is aware of the issue.
Council will decide on action to take
Kitchen reimbursements(used for individuals only):
The Treasurer may write out checks up to $25.00 a month for authorized persons purchasing kitchen items (disbursement forms and supporting documents are still required).
Verify receipts to ensure taxes are not paid and/or are not reimbursed to individuals.
Review and approve if no discrepancies.
If monthly amount is over $25.00
Ensure council is aware of the request.
The Council will vote on request
If approved: give completed form and receipts to Treasurer for payment.
Travel:
Ensure the worksheet is attached to disbursement form and any receipts.
Check receipts to ensure taxes are not reimbursed.
See Travel policy.
Benevolence: See Benevolence policy (3 page document)
BANK STATEMENTS:
Beginning, Ending balances and Dates match QB reports
Review against Reconcile Report and/or Transaction Detail Report.
Mid-month (checking):
Verify all checks written are documented in QB.
Verify all deposits are documented in QB
Verify all transfers are documented in QB
Verify any interest paid is documented in QB
Any unexplained transactions need to be addressed by council
If all items match: Write “OK” sign and date statement
End of Month (savings):
Verify all Electronic Fund Transfers (EFT) are documented in QB.
These are usually payroll payments and AFLC admin fees.
Verify deposits are documented in QB
Verify any interest paid is documented in QB
Any unexplained transactions need to be addressed by council
If all items match: Write “OK” sign and date statement
OFFERINGS:
Verify offering forms are signed by 2 (two) persons, not the same 2 people every Sunday.
DEPOSIT BOOKS:
Verify totals on offering forms match deposited amounts in bank book and QB report (see bank statements).
FINANCIAL REPORTS
Balance Sheet
Date: last month
Quick view of where the money is and the net income
Used to see if spending vs. donations is in proportion to each other (if net income is a negative number spending is higher than donations)
Monthly Contributions (columns by week)
Date: last month
Used to verify (tithe) AFLC 10% Charitable Contribution
Amount of contribution taken from the General Unrestricted total.
Transaction Detail by Account
Date: last month
Compare with checkbook (see bank statements)
Verify internal transfers (General to Kitchen if used)
If check has been written and is not in QB let the bookkeeper know and have reports rerun prior to council meeting
Unrestricted Income & Expense by Class
Date: last month
Shows interest and donation total
Used for tracking where the money is by account and class
Temporary Restricted-Designated by Class
Date-Custom: 1/1/2012 through end of last month
Shows funds still in designated accounts
Used for tracking and approval prior to treasurer writing checks.
Unrestricted Funds & Expense-Prev Year Comparison
Date-Custom: beginning of current year through end of last month, (example: 1/1/13 through 3/31/13)
Shows last year compared to this year by account
Used to view any changes and bring concerns to council’s attention
Budget vs. Actual
Date- This Fiscal Year
Shows estimates for year and how the church is spending
END OF YEAR
REPORTS:
Balance Sheet
Date: Last Fiscal Year
EOY-Summary-council-Contributions
Date: Last Fiscal Year
EOY-Designated Funds (Restricted)-Expense detail
Date: Last Fiscal Year
EOY-Statement of Income & Expense
Date: Last Fiscal Year
EOY-NON Designated Funds-Transaction Detail By Account
Date: Last Fiscal Year
Pastor Transaction Detail by Account (book keeper may give spreadsheet for easier review)
DONATION STATEMENTS
End of year donor statements completed by bookkeeper and reviewed by finance committee. If no issues they are mailed, emailed, or hand delivered no later than January 31st.
W-9’s
Ensure a W-9 is given and returned for all payments concerning income (Janitor, Guest Speakers, etc.) and are kept in file.
W-2 & W-3
Ensure all dollar amounts match QuickBooks reports.
Upon approval bookkeeper will:
Fill out forms online and mail, email or hand deliver to employee by January 31st
And the Social Security Administration no later than February 28th.
1099-misc.
Ensure all independent contractors are tracked (W-9 in file)
Ensure dollar amounts match QuickBooks reports.
Upon approval bookkeeper will:
Fill out forms online and mail, email or hand deliver to employee by January 31st.
MI Form 165
Michigan Department of Treasury filled out correctly
?? (Not sure who is responsible for audit)
internal audit:
Schedule internal audit, contacting audit committee, Treasurer, and bookkeeper to set date.
If any issues, try to resolve them, if unable to resolve; bring items to council’s attention.
There are five sample church funding policy and procedures below that your church can use as a guide to create their very own.
There is also a sample Letter to the Congregation Regarding the Donation Funds and procedures on how the funds are distributed and also to better educate your congregation on how it will benefit them to give to these funds and much more.
The Bible Fund Policy below includes these statements and more:
“The church, in exercise of its religious purposes and mission, has established a Bible Fund to provide resources for the purpose of spreading Gods word.” “The church welcomes contributions to the fund…”
The Chair Fund Policy below includes these statements and more:
“The church, in exercise of its religious purposes and mission, has established a Chair Fund to enable donors to assist with the purchase new chairs for the church.” “The church welcomes contributions to the fund…”
The Church Meals Fund Policy below includes these statements and more:
“The church, in exercise of its religious purposes and mission, has established a Church Meals Fund to provide resources for the church fellowship and its various ministries.” “The church welcomes contributions to the fund…”
The Designated Funds Policy below includes these statements and more:
“[Church Name] models the concept of tithes for its members by giving 10% of all unrestricted donations to the [Church Name].”
“[Church Name] adopts this policy in order to comply with legal standards of charitable contributions.” “Some Exampels of legal compliance are: 1. “The contribution is unconditional and without personal benefit to the donor.” 2. “The contribution is made to or for the use of the church.” 3. “The value of personal services is never deductible as a charitable gift.”
“No deduction is allowed unless the church exercises full administrative control over the donated funds to ensure that they are being spent in the furtherance of the church’s exempt purposes.”
The Missions Fund Policy below includes these statements and more:
“The church, in exercise of its religious purposes and mission, has established a missions fund to provide resources for the church, church members, or other worthy persons or organizations spreading the gospel of Jesus Christ.”
“The fund can also provide resources to church members or other worthy individuals for short-term mission trips or support of long-term missions.”
“The Church has made commitments from the general fund and will use designated giving to help meet these commitments before giving to other missions.” “The church welcomes contributions to the fund.”
The sample policy below for the church keys can be a great tool to download and use to create your very own policy for your church administrative office, etc.
After your church employee and/or volunteer reads this policy in orientation or when they receive a church key(s), have them sign it that they read it and you need to file it in their personnel file in your church administrative office.
~ ~ ~
Employees and/or volunteers of the church should know most of the rules in the workplace concerning different areas such as the keys to the church but not always. Sometimes it takes reading and reminding them just what is allowed and what is not allowed as far as the keys of the church.
The Church Keys Policy below includes:
Church Name and Policy Title – Insert your church name.
Purpose – To provide a set of guidelines for the upkeep of the church keys.
Guidelines – The keys to [Church Name] will be provided to those person(s) who require them for successful fulfillment of their ministry (ies) and to ongoing renters of the building(s) upon approval of the Pastor or designee.
Oversight Responsibility – It is the Clerk’s responsibility to provide the church keys and properly train key holders regarding appropriate security procedures.
Key Holders – It is imperative that key holders DO NOT duplicate keys unless authorized by the Clerk. If another set of keys is needed, the Clerk should be contacted. The Clerk will maintain a list of all key holders. Keys are to be returned to the Clerk if/when the key holders have no ministry/program or rental-related need for them or upon request.
Signatures – The employee and/or volunteer will sign and date that they have read and agree with the keys policy along with the Pastor(s) signature and date.
Revised Date – Insert the date the Keys policy is updated or revised each time.
It is important to have a policy in your church for keys so that there will be no confusion as to where are the church keys.
…you may wish to use as a guide in developing your own policy and procedure manual.
What is a Church Policy & Procedures Manual?
A Church Policies and Procedures Manual is a reference guide to the functions and operations of the church. It lists routine duties and answers questions that arise as duties are performed. The procedure section gives step by step instructions for performing each task.
What is a Policy?
A policy is a statement that defines the authority required, boundaries set, responsibilities delegated, and guidelines, established to carry out a function of the church. In other words, policies are “what” a company does or who does the task, why it is done, and, under what conditions it is done. Policies answer questions that arise during unique circumstances.
Policies provide uniform treatment of a situation, thus achieving continuity of operation. Policies take personalities out of the picture. Decisions are based on the church policy not on the individual, and each situation is treated the same.
What is a Procedure?
Procedures tell “how” a task is done. A detailed listing is made of each step taken to complete the process. A step by step description of the process is used to complete the job.
This manual below is a sample which can be used as a guide when developing your own church policy and procedures. Policies cover leadership, management, financial, personnel, general administration and ministry.
Policy and procedures, if properly applied, become very invaluable for identifying and assigning responsibilities, keeping a quality level of performance throughout church ministries, and protecting the congregation and church leaders as a whole.
The church policy and procedures should be kept in a manual available for the church administration to access at any time. If a question arises, the manual should have policies to lead and guide anyone through any crisis.
Here is a sample of one of the policies below:
Baby/Child Dedication Policy and Information
“Children are a heritage of the Lord; and the fruit of the womb is his reward!” – Psalm 127:3
Purpose
It’s our desire that every child be blessed. A Baby/Child Dedication is a commitment by the parents and the church to provide opportunity for the child to know and experience what it means to follow God. For this reason, A Baby/Child Dedication is defined by the following criteria:
Why do we do Baby/Child Dedications?
The dedication of a child is a voluntary act in which believing parents publicly present their child and themselves to the Lord as an outward expression of their commitment to God regarding the raising of this child. The parent(s) are essentially committing themselves to raising this child, with God’s help, in a way that demonstrates an example of Godliness, discipling according to God’s ways and prayerfully training that child in God’s teachings until that child can made a decision on his or her own to follow God. At the time of dedication, the family at [Church Name] is also committing themselves to participate in raising of this child through our children and youth programs as well as to encourage this child in such a way as to be a positive witness and influence so that the child can grow up to one day accept Christ and live for Him.
Duomo Sant'Andrea - "I Knew You'd Be A Girl! 