FINANCIAL PROCEDURES MANUAL

 

Introduction

Church Purposes

Church Mission Statement

Church Vision Statement

Definitions 

Job Descriptions

Stewardship Committee

Church Financial Recorder

Church Treasurer and Assistant Church Treasurer

Church Tellers

Procedures

Collecting and Counting of Funds

Annual Financial Auditing

Financial Auditing at the End of Treasurer’s Term of Office

Payment of Bills and Invoices or Reimbursement of Funds

 

 

Introduction to Church Financial Procedures Manual

 

The Financial Procedures Manual is to provide financial guidance to officers, committees, ministry teams and church members as we seek to disciple believers in following the Biblical concept of stewardship.  Our goals are to encourage discipleship as we seek to accomplish the purposes of our church.

 

The church Stewardship Committee shall review this manual, at least annually, with authority to recommend changes for the Church to consider.  Any church member or church organization may initiate suggested changes in the manual.  Additions, revisions, or deletions of church financial procedures requires approval by a quorum of the Church in business session.

 

 

 

 

Purposes of Chesterfield Community Church

 

We are to love God and love and serve people while demonstrating total commitment of life, personality, and possessions to our Lord Jesus Christ.

 

The five purposes of our Church are:

 

1. Worship - To love and praise God and live in obedience to His leadership.

2. Evangelism - To love and share Jesus with the people of our community and world.

3. Fellowship - To love and fellowship with our fellow believers in Christ.

4. Discipleship - To love and help people grow in knowledge of God.

5. Ministry - To love and minister with servant’s hearts to our community and world.

 

 

 

 

Church Mission Statement

 

“Loving God, Loving people, and Serving the world with a servant’s heart”

 

 

 

Church Vision Statement

 

“We are to reach and teach to win the lost and develop the saved for Jesus”


Definitions

 

Authorization of Expenditures: A church budget is to be approved annually by the Church in business session and amended during the year as needed.  Church staff, Committees, Program Directors, and Ministry team leaders shall submit annual budget requests to the Stewardship Committee by November for submission to the Church in business session in December.  Amendments may be necessary to increase amounts in line items. If a church program’s attendance increases, we may need to consider increasing the budgeted amount as needed in that line item.  Budgets should be increased as ministry needs increase. 

 

Documentation: The church is to have procedures to verify expenditures.  The procedure includes provision for receipts, purchases, expense advances, verification of bank deposits, etc,

 

Reconciliation: All activity in either credits or debits to the accounting system must be reconciled.  A term is used in Romans 6:11 that is also used as an accounting term.  The word is "reckon." This term means to balance the books.  The definition is linked to another Greek word, which means to take an inventory.  This would be like an audit of church finances.  Of course God has a way of taking an audit of our personal lives.

 

Responsibility Assignments: The individual tasks of receiving, recording, reporting, reconciling, counting, and handling financial gifts is to be assigned to various persons because it is not good practice for one or two person to have the responsibility for all areas.

 

Communication: Most church members are not accountants, cannot easily read financial statements, and just want to know basic facts about the budget.  With this in mind the Stewardship Committee is to provide a summary report to the Church, including fund balances, budgeted amounts, and summaries of receipts and disbursements.   The Treasurer will also develop detailed monthly reports for church members to review as desired.

 

Level of qualification needed: It is understood that most persons managing God's money in the church are volunteers.  All church members need to have Christian values regarding money, and especially those who handle the Lord's offerings.  God wants us to be His stewards.  The following qualities are more important for persons handling our church finances than the professional skills of an accountant: Possession of a sense of calling from God; Being open and willing to receive training; Being capable of managing details of financial matters; Being persons of integrity; Being good stewards (Christian asset managers); Being capable of maintaining confidentiality; and having a good reputation.

 

Tithes and Offerings : Tithes or regular budget offerings are to be credited toward the general church budget.  Designated offerings are not to be credited to the general church budget.  Persons who give designated offerings want them credited toward the purpose designated, therefore, they are to only be credited to the appropriate designated receipts account. 

 

Designated Receipts: Designated Receipts Accounts are to be established upon receipt of offerings given for designated purposes other than budget accounts.  A Designated Receipts Account is used for special offerings such as the building fund or special mission offerings.  Tithes or budgeted offerings are not to be credited toward any Designated Receipts Account without approval by the church in business session.

 

Job Descriptions

 

Stewardship Committee

The Stewardship Committee has as its primary responsibility the leading of the church in budget subscription, budget administration, and promotion of stewardship education in all areas of the church programs.  The team is to seek to help church members grow as Christian stewards by encouraging development of an understanding of and a commitment to the biblical teachings of stewardship.  The Stewardship Committee Chairman is to 1) consider all vouchers as to whether what is requested is in the budget, whether the requested funds are available, and to verify priority and necessity of items requested on vouchers, 2) Review expenditures periodically, in terms of budget allocations, 3) Recommend needed adjustments in budget, 4) Request annual auditing of books, 5) Check all financial reports submitted by the church Treasurer, and 6) Know how the Lord’s money is spent by the Church.  The Stewardship Committee is to: 1) Develop and recommend methods of using the appropriate channels of the church to introduce biblical stewardship concepts, 2) Seek to increase mission understanding, 3) Seek to develop Christian stewards by sharing mission education materials and mission support information, and 4) Encourage an understanding of and growing commitment to missions and mission support, 5) Discover ways to plan and support church ministries through budget development, promotion and commitment, 6) Take steps to ensure sound procedures are used for receiving, counting, safeguarding and disbursing funds, and 7) Plan and suggest to the Church, stewardship activities throughout each calendar year.

 

The Church Financial Recorder

The church Financial Recorder is an officer of the Church. The Nominating Committee shall nominate to the church, from among the membership of the church, a member to serve as Financial Recorder. Upon approval by the church in business session, the Financial Recorder shall serve from September 1 through August 31 of each year according to the Bylaws of the church.  It shall be the Financial Recorder’s duty to receive all empty tithes and offerings envelopes after the money has been removed and counted by the Tellers, and from these the Financial Recorder shall give each donor contribution credit as defined by the church Bylaws.  The Financial Recorder shall be responsible for preparing and distributing semi-annual and annual statements on a calendar year basis to all contributors.  The Financial Recorder shall be responsible for ordering and issuing church tithes and offerings envelopes.

 

Qualifications - A Financial Recorder should: 1) Be Trustworthy and Available, 2) Be willing to be held accountable, 3) Possess appropriate accounting skills, and 4) Possess computer skills, if required

 

Responsibilities:

1.        After all money has been removed by the Tellers, arrange church offering envelopes by number or alphabetically, arranging families together, for ease in recording contributions.

2.        After all money has been removed by the Tellers, arrange all special offering envelopes and miscellaneous receipts alphabetically.

3.        Record amounts from all envelopes and miscellaneous receipts in the correct spaces on the individual contribution records.  Use an additional sheet for visitors labeled as "Visitors." (Computerized data entry may be utilized)

4.        Box and date all offering envelopes and miscellaneous records of receipts and securely store them for three years maintaining confidentiallity. 

5.        At the end of each quarter, total all individual contributions and total special gifts at the end of each year.

6.        Provide contributors a summary report of their contributions semi-annually and annually by U.S. Mail or by hand-delivery.

7.        Ensure the confidentiality of each contribution record is strictly maintained with only each contributor having access to their own contribution information.

 

The Church Treasurer and Assistant Church Treasurer

The church Treasurer is an officer of the church.  The Nominating Committee shall nominate to the church, from among the membership of the church, a member to serve as church Treasurer. Upon approval by the church in business session, the church Treasurer shall serve from September 1 through August 31 of each year according to the Bylaws of the church.  The character of this person should model the highest Christian lifestyle.  The church Treasurer holds a position directly impacts the entire budget process.  This person's life needs to be a model of a Christian steward.

 

The church Treasurer works according to church procedure and instruction.  Just as the Stewardship Committee recommends changes and additions to existing procedures, the church Treasurer also makes recommendations as needed.

 

The church Treasurer is held by the church in sacred trust to properly handle God's money received and disbursed through the church.  There are four primary areas of work where the church Treasurer functions: 1) Receiving, 2) Recording, 3) Disbursing, and 4) Reporting.  The Treasurer is responsible for these functions even though some tasks may be delegated. 

 

It shall be the duty of the Treasurer to keep an account of all deposits and disbursements.  According to the availability of funds, the Church Treasurer shall pay budgeted and properly authorized bills less than $500.00 for local work and expenses promptly by check, as well as, funds received for approved denominational or other causes.  The Church must approve in business session such bills in excess of $500.00.  All books, records, and accounts kept by the Treasurer shall be considered the property of the Church.  These books shall be open to inspection at all times by any member of the Church.   The Church shall ensure the Treasurer is bonded.  The Treasurer of the Church shall maintain the records of all salaries paid and deduct and properly manage income taxes and social security when applicable.  The Treasurer of the Church will make available to the church a condensed statement monthly and a detailed statement quarterly.  A copy of the monthly and quarterly statements will be presented to and filed by the church Clerk.

 

The Assistant Treasurer will be nominated to the Church by the Nominating Committee, elected annually by the Church in business session, and will perform the duties of the Treasurer in the Treasurer’s absence. The Church shall ensure the Assistant Treasurer is bonded.

 

Responsibilities

 

1.        The Treasurer Receiving

A.        Gifts received during worship services and Bible Study

1. After the gifts are received and counted by the Tellers, deposits are to be deposited in the bank with a duplicate deposit slip given to the church Treasurer.

The church Treasurer verifies the deposit with the bank the next business day by telephone, fax or in person.

B.        Other Gifts Received

1. As gifts are received at times other than at worship services or Bible Study, the gifts are to be credited by the Treasurer to the purpose as given, recorded to the contributor's record of contributions by the Financial Recorder and deposited in the bank by the Tellers with a copy of the deposit slip given to the church Treasurer.

2. The church Treasurer is to handle all resources given by wills and trusts in cooperation with the Stewardship Committee.  These resources are to be reported to the church as receipts are recorded.  If there is a decision to be made as to the use of estate funds, it should be a church decision.

3. Some funds are often designated to a certain use, therefore, monthly summary status reports and quarterly detailed status reports are to be provided to the church. 

 

C.        At the end of each month, the church Treasurer is to provide a summary report to the church of all gifts received and how they are allocated.  This report is to be coordinated with the Stewardship Committee.

 

2.        The Treasurer Recording

A.        The church Treasurer is to use a church financial record system that is selected by the church Stewardship Committee and approved by the church.

B.        The Church Treasurer is to recommend to the Stewardship Committee any needed changes in the accounting system.

C.        The Treasurer is responsible for recording all receipts and disbursements of church funds.

 

3.        The Treasurer Disbursing

A.        The church fiscal year shall run concurrently with the calendar year beginning on January 1 and ending on December 31.  Expenses paid after December 31 of each year must be expensed against the appropriate account in the year actually paid.

B.        The church Treasurer is to only act upon the authority of the Church for disbursing of funds.  The Treasurer does not have the authority to pay non-budget items without instructions from the Church.

C.        Insufficient funds to pay bills may present an emergency situation.  Such situations require the action of the Stewardship Committee and church according to the church Bylaws.

D.        Middle District, Virginia Baptist Mission Board, and Southern Baptist Convention offerings, are percentage offerings that are tied to the budget receipts and are to be disbursed according to availability of funds.

E.        Disbursement should be made by check with the necessary two signatures.  The church requires the Treasure and one other approved co-signer to sign all checks.

 

4.        The Treasurer Reporting

A.        The church Treasurer is responsible to provide a monthly summary financial report to the Stewardship Committee and the church.

B.        The church Treasurer is responsible to provide a detailed quarterly and annual financial report to the Stewardship Committee and the church.

 

The Tellers

The Nominating Committee shall nominate to the church, from among the membership of the church, at least three members to serve as Tellers. Upon approval by the church in business session, the Tellers shall serve from September 1 through August 31 of each year according to the Bylaws of the church.   This is one of the teams that provide proper internal controls on the way tithes and offerings are managed.  To maintain proper checks and balances, the Financial Recorder or church Treasurer is never to serve on this team. The Tellers of the church are to be bonded.

 

The Tellers are to count offerings whenever they are taken, using a receipt book for recording all income. The Tellers are to: 1) Put all receipts along with a bank deposit slip in a bank-approved container and deposit in the bank on the same day the funds were received or as otherwise approved by the church in business session, 2) Make a counting report in duplicate and give a copy to the church Treasurer and the Financial Recorder, 3) Make sure the collection plates are ready for the next collection, and 4) Make sure an appropriate bank-approved deposit bag and bank deposit slip are available for all regular services.  The Counting Team is entrusted with the money collected from the congregation.  They are the guardians of that money from the time they receive it from the congregation until the time it is deposited at the banking institution. 

 

Responsibilities

1. Count worship service and Bible Study tithes and offerings

2. Prepare and sign deposit slips

3. Prepare a Counting Team Report Sheet

4. Protect confidentiality of tithes and offerings

5. Hand deliver tithes and offerings envelopes and loose checks and cash reports to the Financial Recorder.

6. Make deposits directly at the bank or in the night depository at the bank utilizing the bank-approved deposit bags and deposit slips.

 

 

Procedures

 

Collection and Counting of Funds

 

Sunday School, Bible Study, or other tithes and offerings collections are to be surrendered as soon as possible to the Tellers for counting, depositing, and reporting as approved by the church according to the Tellers Procedure.

 

Worship Service Offerings – At the appointed time during each church service, Ushers will collect tithes and offerings and immediately surrender the collection to the Tellers for counting, depositing, and reporting as approved by the church according to the Tellers Procedure.

 

Tellers Procedure - As approved by the church, the Tellers are to utilize the following procedure to count, deposit, and report tithes and offerings:

1. Separate loose checks, offering envelopes, currency and coins into their proper groups.

2. Record Name, Address, and Amount of any loose checks. (Checks not in envelopes.)

3. As envelopes are opened, check to ensure name and amount are recorded on the envelope.  Make corrections as needed.

4. Complete Designated Offerings Report detailing date, any designated amounts, how it is to be designated, and name of contributor.  Submit the report to the Financial Recorder.

5. Stamp all checks with the deposit stamp after they are counted. 

6. Count all currency.  Currency wrappers are to be used only with full amounts.  When using currency wrappers please only use one denomination.  For example: 50 - 1's or 5 - 10's for a $50 strap. 

7. Coin wrappers are to be used only with full rolls.  For partial rolls, use envelopes.  Put correct amount on each envelope, fold over and clip with paper clip.

8. Fill out deposit slip in duplicate, enter the total deposit amount.  Place first top copy with money in bank bag. (Remove bank deposit slip from previous week and submit to Treasurer). Submit second copy of deposit slip to Treasurer.

9. Fill out summary book.  White page stays in book.  Yellow pages go to the Treasurer along with a copy of the church bank deposit slip.  The Pink copy, all emptied tithe and offering envelopes, receipts, the record of loose checks, and any other documents indicating source / purpose of funds are to be delivered to the Financial Recorder.

10. Visitor or new member registration slips are to be submitted to the Pastor.

11. Tellers deposit money at the bank.

 

Annual Financial Auditing

An audit is an examination of the church financial records in order to verify the handling, disbursing, accounting and reporting of church receipts. The church Financial Audit team is to conduct an annual audit of receipts, disbursements, and accounting records and reports. The Audit Team is to: 1) Verify bank deposit slips with their entries in the financial records, 2) Review disbursements for proper entry and distribution of changes to various budget accounts, 3) Verify the accuracy of the totals in all budget accounts, 4) and determine if church-approved procedures have been followed in the handling of church funds. The team may enlist a third party, such as a Certified Public Accountant, to audit the church records.  The church Audit Team should also review the insurance program of the church to determine if amounts and coverage are sufficient and recommend changes to the Stewardship Committee.  The church Audit Team should study the retirement and insurance coverage of the staff to determine if adequate protection is being provided.  The church Audit Team should submit annually, a list of church members to be bonded. This list should include the following: Treasurer; every member of the church Tellers; Sunday School Secretary and Sunday School administrative leaders; and any church member who handles a significant amount of money.  The church Audit Team should report all findings to the church Stewardship Committee.  Persons serving on the church Audit Team are not to serve on the church Tellers, nor should they be involved in receiving or disbursing church funds.

 

This team has a two-fold purpose.

1.        To provide the church with assurance that all funds have been handled according to the will of the church as expressed through its policies and procedures.

2.        To provide an appraisal of the effectiveness with which the accounting responsibilities are performed.

 

Responsibilities

1. Spot-check the offering envelopes to verify the individual record of contributions.

2.        Verify bank deposit slips with the entry in the financial records.

3.        Spot-check disbursements for proper entry and distribution of charges to various budget accounts.

4.        Check the accuracy of the total in all accounts.

5.        Determine if approved procedures have been followed in the handling of church funds.

6.        Study the insurance program of the church to determine if sufficient amounts are carried. 

7.        Study the retirement and employee insurance programs to determine if adequate protection is provided.

8.        The church Audit Team is to report all findings to the church Stewardship Committee.  The Stewardship Committee Chairperson will make a report to the church.

Financial Auditing at the End of Treasurer’s Term of Office

The treasurer shall also be responsible for submitting all of the treasurer's records to an independent professional accountant for an audit that is to be completed at the conclusion of a treasurer’s term of office prior to a new treasurer taking office.

Church Budget

The Stewardship Committee, in consultation with the Church Council, shall prepare and submit to the church for approval an inclusive annual budget (Jan 1 through Dec 31), indicating by items the amount needed and sought for all local and other expenses. In October of each year the Treasurer will announce that group budget requests for the following year are due to be submitted to the Treasurer by November 1.  Each budget request is to provide the following information: 1) How the proposed emphasis / activity will relate to the five purposes and mission statement of our church, 2) Why the emphasis / activity is needed, 3) What the emphasis / activity will cost the church (Describe in detail), 4) What this will mean to the church in future opportunities and costs - 2, 3, 5 years, 5) At least two alternatives to the proposed requests are also to be submitted.  The Stewardship Committee will review all budget proposals and develop a proposed Church Budget for the upcoming fiscal year. The Stewardship Committee is to present the proposed Church Budget to the church for approval during a November church business session but no later than a December business session.

 

Chesterfield Community Church

Church Budget Proposal

 

Ministry:    _________________________________________          Budget Year:  __________

 

Emphasis / Activity:

Describe the proposed emphasis/activity relating to the five purposes and Mission Statement of our church:

Why is the emphasis / activity needed?

What will this emphasis / activity cost the church? (Describe in detail)

What will this mean to the church in future opportunities and costs - 2, 3, 5 years?

Alternative:

Alternative:

 

For every plan proposed there are alternatives.  They are very important to the budget planning of the Stewardship Committee because they give variables for making judgements between one emphasis / activity and another.

 

                                  Signature of Submitting Leader: _________________________ Date: ________   

 


Payment of Bills and Invoices or Reimbursement of Funds

According to the availability of church funds, the church Treasurer shall pay properly authorized and budgeted bills less than $500.00 for local work and expenses promptly by check, as well as, funds received for approved denominational or other church-approved causes. The church must approve in business session such bills in excess of $500.00. 

 

For on-going regular church charge accounts or business accounts, each account invoice or bill must be signed and dated by the responsible Requestor with notation as to the proper church Budget account that it is to be debited against.  The responsible Requestor is to submit the completed invoice or bill to the church Treasurer to authorize the Treasurer to pay the invoice or bill.  Requestors are allowed to authorize expenses to be debited only against the accounts within their own areas of responsibility and must be approved by the Leader of the Committee or the Program Director. 

 

All other requests for payments must be submitted to the church Treasurer by utilizing the Financial Request Voucher form attached below. The form must be completed, signed and dated by the Requestor and the Requestor’s Committee Leader or Program Director.  With the introduction of the teams concept at our church, there may be teams that are not nominated by the Nominating Committee for approval by the Church in business session. The Church Council is to provide oversight of such teams and consider for approval all such team requests for payment of expenditures or reimbursements made by the teams.

 

All store receipts must be attached to the Voucher.  The Voucher must specify the following information: 1) Name of the Requestor 2) Date of request 3) Purpose of request 4) Amount requested, including to whom it is to be paid or reimbursed 5) When requested amount is needed to be paid or reimbursed 6) Signature of Requestor, 6) Signature of Requestor’s Committee Leader / Program Director or Church Council Chairman for teams not nominated by the Nominating Committee to the church for approval, and 7) Signature of Treasurer.  After proper completion of all requirements of the Financial Request Voucher, the church Treasurer will issue payment or reimbursement as appropriate.

 

After reviewing each completed voucher for proper completion, the Stewardship Committee Chairman is to initial each voucher.

 

Chesterfield Community Church

FINANCIAL REQUEST VOUCHER

 

Requestor Name: _______________________________________________ Date Payment Needed: ____________

 

 

Purpose of Request: _____________________________________________________________________________

 

 

Amount Requested: ____________________ Pay to: ___________________________________________________

 

 

Requestor Signature: ___________________________________________________   Date of Request: ___________

 

 

Church Council Chairman Approval (Approval required for teams requests): __________________________________

 

 

Church Committee Leader or Program Director Approval: _________________________________________________

       (For Church Committees or Programs)

 

Treasurer Approval: ____________________________            Stewardship Chairman Review: __________________

 

NOTE: Tax exemption certificates are available from the church Treasurer to submit to the providers of services or goods in order to minimize unnecessary tax payments by the church.

Chesterfield Community Church

Loving God, Loving People, Serving the World