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FINANCIAL POLICIES AND PROCEDURES

_______________ BAPTIST CHURCH

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The Constitution and By-Laws of _______________ Baptist Church take precedence over these Financial Policies and Procedures.

The Financial Policies and Procedures shall be reviewed and updated as needed annually by the Finance Committee.

Purpose: To establish written policies and procedures to govern financial matters at _______________ Baptist Church.

The prime reasons for these policies are:

1. Church members will have the opportunity to be better informed as to how funds are managed.

2. A Policy and Procedure Manual will be helpful to Church staff and church members in carrying out their responsibilities.

3. As church membership and Church staff change, the Manual will be beneficial to the newcomers in assuming their responsibilities.

4. The Manual will allow a full flow of on-going activities as personnel changes occur.

5. The Manual will enable the church to operate more effectively and efficiently in handling financial matters and in serving our God.

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_______________ Baptist Church—A Tax Exempt Organization: _______________ Baptist

Church is a tax-exempt organization as defined by the Internal Revenue Service. As such, it must adhere to the same standards in financial transactions as any other tax-exempt organization. Accordingly, all contributions to ______________ Baptist Church shall be accurately recorded as to source, assigned to the appropriate account or accounts, and all expenditures shall be duly authorized.

The Finance Committee

It is the duty of the Finance Committee to oversee all Church funds, make recommendations to the Church regarding any and all non-budgeted items to be spent, develop a financial resource strategy for the church, and make recommendations to the Church regarding any and all financing to be considered.

Policies and Procedures:

Records: Careful and accurate records shall be maintained for all funds received and disbursed. Various forms designed to document receipt and disbursement of funds shall be used faithfully to document all _______________ Baptist Church transactions for which they were designed.

Audit: An annual audit or review of the _______________ Baptist Church books shall be made by a certified public accountant. The services of the certified public accountant shall be based on a one-year contract with a maximum of three consecutive years.

Appointments: The offices of Church Treasurer and Assistant Church Treasurer are filled by the Church according to the procedure described in the Constitution and Bylaws of _______________ Baptist Church and their duties are put forth in the _______________ Baptist Church Constitution and Bylaws.

Treasurer: It shall be the responsibility of the Treasurer to accept all funds contributed to _______________ Baptist Church and disburse said funds which meet the criteria outlined in relevant paragraphs of this document, as authorized by the approved General Budget, or approved by vote of _______________ Baptist Church in Conference.

Signatory Review: Annually, the Treasurer and Finance Committee shall review the list of those persons responsible for handling Church funds and bank account signatories who are bonded to ensure the list is current. Individuals authorized to sign checks are Moderator, Treasurer, Assistant Treasurer, and Finance Committee Chairperson. All _______________ Baptist Church checks require two signatures.

Receipt of Funds: All funds contributed to _______________ Baptist Church shall be deposited with the Treasurer, subject to the order of _______________ Baptist Church to be appropriated in defraying the current expenses and for contributing to the various missionary objects fostered by _______________ Baptist Church and the various denominational bodies with which _______________ Baptist Church is affiliated. Bequests and legacies shall be overseen by the Board of Trustees of _______________ Baptist Church.

Designated Gifts: Gifts for specific purposes shall be listed as designated gifts and shall be accompanied by written statements from the donor as to their purposes. Gifts must be made in accordance with appropriate laws and regulations and the Finance Committee reserves the right to consult the donor if there is any possible conflict.

Expenditure of Designated Gifts: Where designated gifts are given for a specific purpose, the wishes of the donor will be honored to the fullest extent allowed by law. If the designation is to a regular budgeted line item or activity in the General Budget, and the Finance Committee determines that the balances of other church budgeted line items have been adversely affected, the Finance Committee is authorized to transfer a like amount from that budget item for use elsewhere in the budget.

Funding Mission Activities: Not less than 10.5% of the tithes and offerings to the general budget shall go to mission activities as approved by the Church. Offerings as designated gifts are not included in this percentage.

Budget Presentation: In consultation with the Church Council and the Finance Committee shall prepare a budget for submission to _______________ Baptist Church for approval. When approved by the Church, these items shall stand as authorized for payment for the purposes specified, not to exceed the amount allocated.

Fiscal Year: _______________ Baptist Church’s fiscal year shall begin January first and end December thirty-first. The meeting for the adoption of the Budget by _______________ Baptist Church in Conference for the ensuing year shall be on a date recommended by the Finance Committee. The date shall be published in the official Church calendar and in mail-outs on two consecutive weeks.

Line Item Transfers: At the request of the appropriate staff member or lay leader, the Church Treasurer with approval of the Finance Committee, shall have the authority to make changes between line items within budget categories. Should requested changes increase the budget category beyond the Church adopted total, an amended budget must be submitted by the Finance Committee in consultation with the Church Council to the church for approval.

Shortfalls: If actual income is less than budgeted income, the Finance Committee shall have the authority to temporarily reduce various budget line items until actual income meets or exceeds budgeted income. If personnel line items are to be affected the Finance Committee must present a recommendation to the church for approval.

Check Presentation: _______________ Baptist Church checks are issued on Thursday of each week. Requests must be turned into the Church Treasurer by NOON on Wednesdays to be included in the weekly Thursday check preparation.

Budgeted Expenditures: All purchases or financial obligations of _______________ Baptist Church should be supported by approved budget items. No _______________ Baptist Church employee or member shall make a financial commitment for _______________ Baptist Church over $________ without approval from the Church Treasurer or the Finance Committee Chairperson. The Church Treasurer shall have the authority to approve expenditures up to $_________ of budgeted monies. Expenditures of budgeted monies in excess of $_________ require the approval of the Church Treasurer and the Finance Committee.

Designated Expenditures: All purchases, expenditures, or obligations using designated gifts shall be reviewed by the Church Treasurer to ensure that the monies are being spent according to the designation of the gift. The Church Treasurer shall have the authority to approve expenditures up to $_________ of designated gifts. Expenditures of designated gifts in excess of $_________ require the approval of the Church Treasurer and the Finance Committee Chairperson.

Unbudgeted Expenditures: Purchases, expenditures, or obligations not included in the approved budget shall be submitted to the Church Treasurer and to the Finance Committee for approval and, with Finance Committee approval, to the _______________ Baptist Church in Conference for consideration and final action.

Travel: When Church staff and members travel on approved Church business, expenses shall be paid on a per diem basis, as reported annually by the United States Internal Revenue Service. Other travel related expenses shall be reimbursed after completion of the approved travel expense form filed with _______________ Baptist Church. The cost of mileage for the use of a personal vehicle shall be reimbursed at the published IRS rate, and after the submission of timely and complete travel records. Travel expenses reported after 60 days shall not be considered timely; and therefore, will not be reimbursed.

Emergency Expenditures: Emergency expenditures shall be reported to the Church Treasurer by the following business day and to the Finance Committee at its regular monthly meeting.

Special or Love Offerings: All special/love offerings are free will offerings and should be made by Church members over and above their tithes and offerings. If the amount collected for any of these special/love offerings fails to meet the goal, no funds will be disbursed from the General Budget to make up the shortage unless approved by the Finance Committee. The disbursement of all special/love offerings shall be by check.

Fees: Fees charged to various groups for the use of church facilities shall be collected according to the schedules set by the various policies of _______________ Baptist Church.

Returned Checks: When notified of a returned check, the Church Treasurer shall notify the individual or company of the occurrence and inform them of any additional fees that may apply. The Church Treasurer will try to arrange a time for the individual or company’s representative to come by the Church Office to satisfy the obligation.

Payment of Salaries and Benefits: All Staff salaries and benefits will be paid from the appropriate general budget accounts.

Contingency Fund: A Contingency Fund line item should be placed in the General Budget each year. Requests for expending these funds shall be submitted to the Finance Committee for approval.

Surplus Tangible Assets: Disposing of surplus/obsolete tangible assets of _______________ Baptist Church shall be recommended by the Building and Grounds Committee and the Finance Committee for approval. The income from the disposal of such assets shall be integrated into the General Budget.

Staff Responsibilities: The Church Treasurer shall work closely with staff and lay leaders to ensure that funds received and disbursed are properly accounted for and that a monthly report is made to the Finance Committee.

Conflicts of Interest: Staff members are specifically prohibited from making purchases from firms in which they or an immediate family member have a financial interest. Any exceptions to this rule must be approved by the Finance Committee after full and fair disclosures of said conflicts.

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