Finance Workshop

Finance Workshop Rhode Island/Southeastern Massachusetts District New England Conference Of the United Methodist Church Part 1 Rev. John Holt Part 2 Dr. Lee Arnold

Part 1 Review/Q and A • Pastoral Responsibilities • Stewardship • Annual Audit and Fund Balance Report • Safeguards Rev. John Holt

Part 2: The Finance Committee: from the Agenda to Operations Dr. Lee H. Arnold

Agenda • Opening Prayer • Previous meeting minutes • Process • Discussion • Other thoughts • Closing prayer The Committee Meeting

Identify known sources of income and investments • Match resources to obligations Process

Welcome the members (what the Discipline requires) Review the status of collections (we’ll show you one way to do that) Introduce the Finance Committee Responsibilities list (we’ll give you a copy as a sample) Interact with the Pastor-Parish Relations Committee and the Stewardship Team (we’ll tell you why) Project needs for transfers from investments (it you have any; at the very least, keep track of cash flow vs. obligations)

Chairperson Pastor (s) Lay member to the Annual Conference (one) Church Council/Board Chair SPRC Chair or representative Trustees President or representative Stewardship Chair Lay Leader Financial Secretary Treasurer Church business administrator Others as determined by the Charge Conference Finance Committee Membership

Collections counted and report completed by two unrelated individuals Show the categories of giving as well as amounts (we’ll give you a sample) Delineate contributions by cash, check, or electronic offering Weekly reports should be compiled for monthly review by the Finance Committee and the Church Council (we’ll show you a sample) Displays should show collection totals by week, by month, and by quarter (you guessed it – another example!) Weekly Collections

Contact each Committee Chair, the Trustees, and the Church Office for requests and recommendations Be mindful of Conference numbers and guidelines regarding salaries, benefits, insurance, Workers Compensation, health care, pensions, and Mission Shares Build the budget. Prior year expenditures are a good starting point for estimating operational expenses and income. Prepare a final proposed budget document for review and approval by the Church Council and the Charge Conference Budget Building

Overseeing stewardship Compiling a budget annually Raising sufficient income to meet the budget Administering funds received by the church Counting and depositing the offering Disbursing funds Committee Responsibilities . . .

Establishing internal control policies Annually reviewing and reporting on the adequacy and effectiveness of internal controls Providing for an annual audit of the church financial statements Reporting to the annual charge conference on the audit Committee Responsibilities . . .

Recommending proper depositories for church funds Using contributions in accordance with donors’ intent Annually reporting to the Church Council all designated funds that are separate from the church budget Committee Responsibilities

All three are represented on the Finance Committee SPRC (Pastor-Parish Relations) gets compensation and benefits numbers from Conference SPRC can be involved in reviewing accountable reimbursement and continuing education requests from the Pastor Interaction with SPRC, Stewardship, and Trustees …

SPRC and Trustees can recommend improvements to the Parsonage, or adjustments to a housing allowance SPRC and Trustees can be helpful in arranging Pastoral moves Trustees establish the gift acceptance policy and make recommendations to the Finance Committee and the Church Council Interaction with SPRC, Stewardship, and Trustees …

Trustees can assist in developing lists of short-term and long-range capital needs Stewardship can recommend strategies to encourage financial and related support, and can prepare Pledge Sunday and pledge education events leading up to that event Interaction with SPRC, Stewardship, and Trustees

Request quarterly statements showing account values, along with comments on permanent balances if any, as well as restrictions on the use of donated funds Develop recommendations for the use of invested funds with the Investment Group for presentation to the Church Council Assist as called upon in selecting entities to provide investment services Interaction with the Investment Group

PROCESS • Create a Responsibilities list • Develop a business manual • Establish instructions on the use of Purchase Orders • PROGRAMS • Stewardship • Gifting opportunities • Personal budgeting education • Fund-raising Other Thoughts …

TECHNOLOGY • Internet capability • Web site • Video capability • Electronic giving • Newsletter in electronic and printed form • Links to related sites and resources • Other (use your own circumstances and imagination!) Other Thoughts

FIRST QUARTER (January, February, March) Welcome the new Committee members and provide all members with a packet of basic information Review policies and adjust as needed Set dates for fund raisers and Pledge Sunday Set schedule for Mission Shares payments 5. Arrange for audit of prior year The “Seasons of Finance”…

Review and attend to any items held over from prior year Discuss any anticipated changes in staff or properties Send thank you notes to pledgers Ensure the distribution of tax statements to donors Complete the Conference ACH forms 11. Ensure quarterly payroll-related tax returns have been prepared and filed by the Treasurer or Business Administrator The “Seasons of Finance”…

SECOND QUARTER (April, May, June) Review first quarter results (planned vs. actual income and expenses) Finalize planning and publicity for any spring events (e.g., Camp Aldersgate scholarship event, Sunday School graduation expenses, fund raisers) Review audit findings and take action on findings and recommendations Ensure that counting and deposit procedures are fully prepared for Easter collections The “Seasons of Finance”…

Interact with the SPRC to determine summer staffing and personnel needs, especially if a Pastoral transition is anticipated Ensure quarterly payroll-related tax returns have been prepared and filed by the Treasurer or Business Administrator Ensure that quarterly giving statements have been prepared and mailed to donors by the Financial Secretary The “Seasons of Finance”…

THIRD QUARTER (July, August, September) Review second quarter and year to date results (actual income and expenditures relative to the approved budget, and comparison to prior year) Ensure that cash flow will be adequate to cover all essential obligations Ensure quarterly payroll-related tax returns have been prepared and filed by the Treasurer or Business Administrator The “Seasons of Finance”…

Ensure that quarterly giving statements have been prepared and filed by the Treasurer or Business Administrator Plan fourth quarter activities, to include Pledge Sunday, Holiday or Christmas Bazaar, and the like Prepare the ensuing year’s budget for presentation to and review by the Church Council The “Seasons of Finance”…

FOURTH QUARTER (October, November, December) Review third quarter and year to date results Ensure quarterly payroll-related tax returns have been prepared and filed by the Treasurer or Business Administrator Ensure that quarterly giving statements have been prepared and mailed to donors by the Financial Secretary The “Seasons of Finance”…

This quarter includes Thanksgiving and Christmas, as well as the Holiday Bazaar; ensure that counting and depository procedures are fully prepared This quarter typically includes the annual Charge Conference. The ensuing year’s budget and Finance Committee reports must be prepared for inclusion in the annual Charge Conference booklet The “Seasons of Finance”

Thank You! Rev. John Holt Dr. Lee Arnold

Finance Workshop