1. Committee on Finance in the Church
Welcome…
How would you complete the posted sentence: A servant leader is…. Think on that for a little bit…
Opening Prayer:
Gracious and Loving God, we come together as servant leaders of your church, as parts of the body of Christ. Open us to the presence of your Holy Spirit and fill us—our time, our conversations, our reflections, our doubts, our fears, our hopes, and our plans— with the joy of exploration and the wisdom of your love. We gather together to learn and to lead, and we pray in Jesus’ name. Amen.
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 Discipline charges 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.
Segregation of Duties. Pg. 15 Financial Secretary/Treasurer
Income side – Financial Secretary
Expense Side – Treasurer
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
Search for “contribution”
Starred items #590 – 630 are critical to be 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.
Review of Handouts. Contribution Form and Church Apportionment Sheet
Note:
Payments
Can be made however you want to make them– lump sum; monthly, quarterly…
One way… suggestion I have tried…
10 month payout. Gives you a little leeway and breathing room during the year – say during the lean summer months –anyone who has done this can attest to the summer slumps.
The conference website that is shown on the resource page gives you a resource to help you set up how you want to pay on an Interactive Excel Workbook that you can fill in the total apportionments and then the payment amounts for the months then it fills out the monthly contribution forms and you just have to print. It keeps track of your totals automatically calculated.
How many of you know of VANCO? Vanco is where you can pay your apportionments online without having to send checks. You can find information on that on website also. The link to information on VANCO can be found on the CD.
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. .
Review of Handouts. Contribution Form and Church Apportionment Sheet
Note:
Payments
Can be made however you want to make them– lump sum; monthly, quarterly…
One way… suggestion I have tried…
10 month payout. Gives you a little leeway and breathing room during the year – say during the lean summer months –anyone who has done this can attest to the summer slumps.
The conference website that is shown on the resource page gives you a resource to help you set up how you want to pay on an Interactive Excel Workbook that you can fill in the total apportionments and then the payment amounts for the months then it fills out the monthly contribution forms and you just have to print. It keeps track of your totals automatically calculated.
How many of you know of VANCO? Vanco is where you can pay your apportionments online without having to send checks. You can find information on that on website also. The link to information on VANCO can be found on the CD.
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 information on this webpage.
District Apportionments in Green Country are done just like the Conference Apportionments. A budget is derived and then the decimal system is used (same as the conference decimal) which is applied to the budget amount and gives the amount for each Church.
Our Budget has stayed basically static for the last 2 years. We has a payout of 98% of the apportionments in 2016.
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.
On the resource page I have listed a website for Discipleship.org where there is an audit guide as well as a short seminar.
Independence is the key word in who performs the annual audit.
Independent CPA
Audit Committee (internal) – Composed of people unrelated to the treasurer, financial secretary, pastor, finance chair, business manager, counters or church secretary.
In small churches, that may be hard to come by to find the independence necessary.
One suggestion – partner with another local church and see about using committees to audit each other’s books….
Three basic purposes:
Reasonably verifying reliability of financial reporting – review of cash and investment reconciliations.
Determining whether assets are being safeguarded
Determining compliance with local law, local church policies and procedures, and the Discipline. May include interviews with treasurer and others.
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
On the resource page I have listed a website for Discipleship.org where there is an audit guide as well as a short seminar.
Independence is the key word in who performs the annual audit.
Independent CPA
Audit Committee (internal) – Composed of people unrelated to the treasurer, financial secretary, pastor, finance chair, business manager, counters or church secretary.
In small churches, that may be hard to come by to find the independence necessary.
One suggestion – partner with another local church and see about using committees to audit each other’s books….
Three basic purposes:
Reasonably verifying reliability of financial reporting – review of cash and investment reconciliations.
Determining whether assets are being safeguarded
Determining compliance with local law, local church policies and procedures, and the Discipline. May include interviews with treasurer and others.
created by the Green Country District and adapted for the Conference by the Communications Ministry

21. Ezra year-end RePorting statistical 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.
Your Pastor will very likely ask for your assistance in Table 2 and 3.
How your books are set up makes a difference in how easy or hard it is to get the statistics needed for these tables. If you have the opportunity – changing software, redoing the budget, etc. You may want to look at these tables and reset some of the budgets to line up with these so that it is easier to extract the numbers needed each year.
Notes:
Since apportionments can be affected by some of these lines, it is important to carefully read the descriptions of the line items. There is ? Next to each line item. If you click on that it will give you a description of what that line item should be comprised of.
I have to verify all churches, and can tell you that it makes a difference and I am looking out for all of you and trying to ensure that the proper numbers are submitted.
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.
Your Pastor will very likely ask for your assistance in Table 2 and 3.
How your books are set up makes a difference in how easy or hard it is to get the statistics needed for these tables. If you have the opportunity – changing software, redoing the budget, etc. You may want to look at these tables and reset some of the budgets to line up with these so that it is easier to extract the numbers needed each year.
Notes:
Since apportionments can be affected by some of these lines, it is important to carefully read the descriptions of the line items. There is ? Next to each line item. If you click on that it will give you a description of what that line item should be comprised of.
I have to verify all churches, and can tell you that it makes a difference and I am looking out for all of you and trying to ensure that the proper numbers are submitted.
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. Are the internal accounting control polices being followed?
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
Audit Assistance
(Under webinar section – Local Church Audit Guide and AUDIT is not a Four-Letter Word)
Stewardship
United Methodist Foundation
Learning from Missteps – Imagine your worst possible day this coming year… what would that look like. What kind of fears do you have?
Does it feel like failure to you?
What can you learn for the scenario to ensure a better outcome in the future. – about your own actions, about working with others, asking for help?
Where is God in this scenario?
Imagine your greatest day this coming year… what would that look like?
What makes it look like a success?
What skills, experience, help from others made it possible?
Where is God in this picture?
created by the Green Country District and adapted for the Conference by the Communications Ministry

29. resources
Conference website Financial Forms/Info Conference Treasurer’s Newsletter Treasurer’s Handbook Apportionments
Learning from Missteps – Imagine your worst possible day this coming year… what would that look like. What kind of fears do you have?
Does it feel like failure to you?
What can you learn for the scenario to ensure a better outcome in the future. – about your own actions, about working with others, asking for help?
Where is God in this scenario?
Imagine your greatest day this coming year… what would that look like?
What makes it look like a success?
What skills, experience, help from others made it possible?
Where is God in this picture?
created by the Green Country District and adapted for the Conference by the Communications Ministry

30. United Methodist Ministry Center 1501 N. W. 24th St
United Methodist Ministry Center 1501 N.W. 24th St. Oklahoma City, OK
created by the Green Country District and adapted for the Conference by the Communications Ministry