Committee on Finance in the Church

1. Committeeon Financein the Church created by the Green Country District and adapted for the Conference by the Communications Ministry

2. Where is Finance ministry’s role in the cycle of discipleship? Reach Out & Receive Relate People To God Making Disciples Send Forth to Live Transformed & Transforming Lives Nurture & Strengthen In the Christian Faith created by the Green Country District and adapted for the Conference by the Communications Ministry

3. What are the distinctive characteristics of financially vital congregations? • Financial Transparency – Purposefully cultivating a culture of openness and transparency by a) sharing clear, understandable reports, b) implementing strong internal controls, c) providing an annual audit of the financial reports • Missional Budget and Fundraising – Moving beyond the survival mind set to think missional about budgeting. Facilitating the congregation-wide activity of discerning, planning, and budgeting for God’s mission. • Best Practices – Dealing with risk, laws, regulations, restricted donations and gifts and apportionments. created by the Green Country District and adapted for the Conference by the Communications Ministry

4. Understanding Theological foundations The Bible discusses money within 3 basic categories: • Money is a blessing from God • Those who have been blessed by God are expected to care for those in need • Money is understood as a potential idol and a force of disruption against a person’s ability to love God and neighbor. John Wesley’s most famous words to early Methodists on money: “..To gain, save, and give all that you can..” Vital and effective financial leaders do not primarily understand themselves as the “business end” of the church. They can play a key part to advance the understanding of stewardship beyond fundraising to pay the church bills. created by the Green Country District and adapted for the Conference by the Communications Ministry

5. Who is the committee on Finance? • Chairperson • Pastor • Lay Member of Annual Conference • Lay Leader • Chairperson or representative of SPPRC • Financial Secretary • Treasurer • Others, at large as determined by Nominating Committee and voted at Charge Conference Note: If any of these people are paid by the Church (other than the Pastor) they serve on this Committee without a vote. created by the Green Country District and adapted for the Conference by the Communications Ministry

6. The ministry of the committee on finance is to nurture the financial vitality of the congregation. This is a comprehensive assignment that encompasses a variety of responsibilities, all of which are necessary if the congregation is to accomplish its vision for ministry. created by the Green Country District and adapted for the Conference by the Communications Ministry

7. Responsibilities of the Finance Committee • oversee stewardship, • compile a budget annually, • raise sufficient income to meet the budget, • administer funds received by the church, • count and deposit the offering • disburse funds • establish internal control policies, created by the Green Country District and adapted for the Conference by the Communications Ministry

8. Responsibilities - continued • review and report annually on the adequacy and effectiveness of internal controls • provide for an annual audit of the church financial statements • report to the District Office on the audit • recommend proper depositories for church funds • use contributions in accordance with donors’ intent • report all designated funds that are separate from the church budget created by the Green Country District and adapted for the Conference by the Communications Ministry

9. Key Financial Roles There are three key roles within the church • Treasurer • Financial Secretary • Chairperson of the Committee on Finance These 3 key positions work very closely with the Pastor also. Clear communication is needed between all these individuals. created by the Green Country District and adapted for the Conference by the Communications Ministry

10. Treasurer responsibilities The treasurer of the church has the unique responsibility of carrying out most of the financial decisions made by the Committee on Finance. The Book of Discipline charges you with broad responsibility in 3 general areas: • Fund Disbursement – The way you pay the bills of the church will either build up or tear down the trust of those who give it to you in the Church. Careful record keeping is key created by the Green Country District and adapted for the Conference by the Communications Ministry

11. Treasurer responsibilities continued 2. Reporting– Regular, monthly is recommended, reporting of all receipts and disbursements that flow through the books is one of the most important responsibilities. 3. Remittance to the Conference Treasurer and District office – Promptly remitting the connectional giving in a timely manner is reflective of the financial vitality and overall health of the church. created by the Green Country District and adapted for the Conference by the Communications Ministry

12. Financial secretary responsibilities The position of Financial Secretary is one of the most important and sensitive offices in the church. The information you compile about contributions to the church is important to both donors and to the church. The Book of Disciplinecharges this position with broad responsibility in three general areas: • Supervision of the offering counts • Prompt deposits of cash from offerings and giving a record of each deposit to the treasurer • Keeping records of contributions and providing giving statements, quarterly recommended, to each donor; with an annual statement also being given for the use with tax returns. created by the Green Country District and adapted for the Conference by the Communications Ministry

13. Chairperson responsibilities This position has the broad responsibility of leading the financial direction of the church. The Discipline charges you and the committee with oversight on the following: • compile an annual budget; • develop and implement plans to raise sufficient income to meet the budget; • administer the funds received according to instructions from the church council; • guide the treasurer and financial secretary by following directions established by the church council; • recruit and assign counters to work with the financial secretary in counting the offering; created by the Green Country District and adapted for the Conference by the Communications Ministry

14. Chairperson responsibilities - continued • provide for bonding for the treasurer (and others dealing with cash); • establish written financial policies to document internal controls; • review the adequacy and effectiveness of internal control policies annually; • make provisions for an annual audit of the financial statements of the church and all its organizations and accounts; • Provide the Audit Report and Supplement to District Office • recommend to the church council proper depositories for the church’s funds; • use contributions as donors intend; • report to the church council annually on all designated funds that are separate from the operating budget. created by the Green Country District and adapted for the Conference by the Communications Ministry

15. What not to do • It is specifically stipulated in the Book of Discipline that the Treasurer and Financial Secretary should not be the same person. • The Treasurer, Financial Secretary nor the Finance Chair should serve on an Internal Audit Committee. Neither should any family members of these appointed positions. • Approve all expenditures. Use of a voucher system where Ministry-Committee Heads and/or the Pastor signs for approval of expenditures is a best practice. • While the Treasurer and Financial Secretary may be authorized to do any one of these key tasks 1) approving payments, 2) signing checks, or 3) reconciling accounts; no one person should be authorized to do more than one. That segregation of duties is important to not only protect the Church, but also protect the individuals and their reputations. created by the Green Country District and adapted for the Conference by the Communications Ministry

16. Connectional giving CONFERENCE APORTIONMENTS • Paid directly to Conference Treasurer. The address to the lockbox has been changed to a Tulsa address. It can be found at the top of the Contribution form. Contribution form can be found online @: http://www.okumc.org/forms Search for “contribution” • Starred items #590 – 630 are critical to be paid @ 100%. Per the Book of Discipline payments to these funds shall be exactly proportional to the amount paid on the clergy base compensation. Recommendation: Pay these first. created by the Green Country District and adapted for the Conference by the Communications Ministry

17. Connectional giving continued CONFERENCE APORTIONMENTS • Each church received a copy of their Conference Apportionments by Fund. The numbers correspond with the fund on the Contribution Form. At the end of the year, if these funds are off from the apportioned amounts, your church will not get credit for paying 100% unless each fund is correct.Pay attention to the amounts apportioned. . created by the Green Country District and adapted for the Conference by the Communications Ministry

18. Connectional giving continued DISTRICT APPORTIONMENTS • Each church should receive in the mail their District Apportionments. • These are paid to the district and sent to the district office address. You can find your district address informationon this webpage. http://www.okumc.org/districts created by the Green Country District and adapted for the Conference by the Communications Ministry

19. Annual audits Audits are due on August 1 The Discipline assigns responsibility for scheduling and recruiting a team to conduct the annual audit of financial records to the committee on finance. The goal of an audit is not simply to comply with the requirements of the Discipline, but to increase the financial transparency of the church, which is a critical element of financial vitality. created by the Green Country District and adapted for the Conference by the Communications Ministry

20. Annual audits continued What exactly is required for a local church audit? The Discipline states, “A local church audit is defined as an independent evaluation of the financial reports and records and the internal controls of the local church by a qualified person or persons” (¶258.4d). • Conducting an audit is not a symbol of distrust. • It is a mark of responsibility. • It is good stewardship demonstrated for all to see. • It is a message to local church donors that you care about their gifts created by the Green Country District and adapted for the Conference by the Communications Ministry

21. Ezra year-end RePortingstatistical tables • During January the Tables will be open for updating. • You will usually have a month time period to input the statistics. • Table 1 Membership & Participation (1-30) • Table 2 Church Assets & Expenses (31 – 60) • Table 3 Church Income (Lines 61 – 65) • Apportionments are affected by Lines 48 – 57 in Table 2. There is a separate list detailing the description of these items included on the CD. created by the Green Country District and adapted for the Conference by the Communications Ministry

22. Ezra year-end (statistical tables) continued • Only report expenses from operating budget. There is a separate line item for capital expenditures that will lower your operating expenditures, i.e.; replacing air conditioners, copy machines, etc. • Last year’s entries are listed right next to your new entries. Question large changes from year-to-year. Use as a guide. • Check for zeros – make sure you did just miss a line before submitting. created by the Green Country District and adapted for the Conference by the Communications Ministry

23. Committee on finance annual checklist Below is a checklist for Finance Committees to use to review their procedures to be sure that they are in compliance with the Book of Discipline and Oklahoma Conference rules. • Has the chair of the Finance Committee scheduled regular meetings of the Finance Committee for the year? created by the Green Country District and adapted for the Conference by the Communications Ministry

24. Committee on Finance annual checklist continued • Have the following positions been filled and approved with non-related individuals? • Treasurer • Financial Secretary • Counting Committee • Have the internal accounting control policies been reviewed and approved for the current year? created by the Green Country District and adapted for the Conference by the Communications Ministry

25. Committee on Finance annual checklist continued • Are the internal accounting control polices being followed? • Have policies concerning designated giving been reviewed and followed? • Have plans been made to raise sufficient funds to support the budget? • Has the audit committee been selected and approved? created by the Green Country District and adapted for the Conference by the Communications Ministry

26. Committee on Finance annual checklist continued Internal Controls • Who other than the Treasurer is doing the checkbook reconciliation? • Is the checkbook reconciliation being done monthly? • Are all the checking accounts being reconciled? • Who can sign checks? • Are complete finance reports, including revenue and expenses and a balance sheet, being printed and distributed to church leadership on a monthly basis? • Who verifies that the deposits match the counting committee’s records and what is being posted to contribution records? created by the Green Country District and adapted for the Conference by the Communications Ministry

27. MIscellaneous Computer Back-Up • It has been known for computers to crash, churches to have fires, and tornadoes to blow churches away in Oklahoma. • Computer files need to be backed up on a regular basis and kept off premises. • Hard copies of some data should be kept in a safe place. • Copies of contribution checks • Copies of contribution posting records and deposit slips and counting committee records should be stapled together and kept for 5-7 years. created by the Green Country District and adapted for the Conference by the Communications Ministry

28. resources VANCO www.okumc.org/electronictransferoffundsAudit Assistance www.umcdiscipleship.org (Under webinar section – Local Church Audit Guide and AUDIT is not a Four-Letter Word) Stewardship www.umcdiscipleship.org/stewardship United Methodist Foundation www.okumf.org created by the Green Country District and adapted for the Conference by the Communications Ministry

29. resources Conference website www.okumc.org Financial Forms/Info www.okumc.org/financeforms Conference Treasurer’s Newsletter http://okumc-email.brtapp.com/archive Treasurer’s Handbook www.okumc.org/Treasurer_Handbook Apportionments www.okumc.org/apportionmentinformation created by the Green Country District and adapted for the Conference by the Communications Ministry

30. United Methodist Ministry Center1501 N.W. 24th St.Oklahoma City, OK 73106-3635 created by the Green Country District and adapted for the Conference by the Communications Ministry