1. Treasurer’s and Finance Committee Budgeting and Financial Statements
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.

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
Blessed to be a Blessing – From the 2017 – 2020 Guidelines
If you are here… you have said “Yes” to servant leadership.
You are blessed to be a blessing. What does that mean? Open floor to response.
The work of servant leaders—your work—is to open a way for God to work through
you and the resources available to you in a particular ministry area, for you are about God’s work. As stewards of the mysteries of God, servant leaders are entrusted with the precious and vital task of managing and using God’s gifts in the ongoing
work of transformation.
Who can tell me what the Mission of the United Methodist Church is? BOD PP120 – To make disciples of Jesus Christ for the transformation of the world.
BOD PP122 – Process for carrying out this Mission – above “Cycle of Discipleship”
Every ministry area and group, from finance to missions, engages in all aspects of this
cycle. We are here today to help you see how that is true for the Finance ministry area. When you begin to consider all of the work you do as ministry to fulfill God’s mission
through your congregation, each task, report, and conversation becomes a step toward
transforming the world into the kingdom of God.
Thank you for saying “Yes” and leading your churches into the Future.
I have included a downloaded copy of the Finance Guideline and Stewardship Guideline on your CD
Nurture & Strengthen
In the Christian Faith

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.
Guidelines Part Two
Pages 13 – 28
Pg. 13 – Clear easy Financial Reports. – Review of handouts of sample reports.
Cash Basis Accounting – recording contributions and expenses only when they cash has been received or disbursed.
Best Practices – Pg. 26 – 28
Missional Interests above personal interests
Connectional nature of apportionments
Honoring donor restrictions
Gift Acceptance Policy
Laws, regulations, taxes, etc.

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”.

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.
Much trust and confidence has been placed in you to make decisions for the Church. These positions require the highest standard of care and complete loyalty to the interests of the Church.

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.

7. RESPONSIBILITIES OF 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,
See Next slide for continuation
Part of that Cycle of Discipleship is educating, teaching, growing a culture of generosity of the church – growing generous disciples of Christ. Stewardship is about relationship – a covenantal relationship with God and trust. It is our responsibility as leaders to teach that. To take the emphasis off of the money part – paying the bills, the roof needs fixed – supporting the brick & mortar institutions (which is necessary don’t get me wrong)– and get the focus on the making of genuine joyful generous disciples – that is where the success can be found.
Note: There is a separate Guideline Book specifically on Stewardship. It is an offshoot of Finance.

8. RESPONSIBILITIES OF COMMITTEE - 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.
Good news is – you are part of a Team. You are not alone. The team functions so that the whole becomes greater than the sum of the parts.
Communication is key.
Notes on responsibilities:
Raising sufficient income to meet budget - There may come times when you need to recommend fundraisers for certain things. Ministries may have to fundraise their money for programming. You may have to get creative and have certain groups adopt Apportionment funds to fundraise for….
Sharing? Treasurer makes reports ready for Finance Meetings monthly, then shared with Admin Councils, Do any of you share anything with your congregation?
Internal controls? How many of you have internal controls set up? There are conference guidelines that I see a lot of churches adopt for Charge Conference – included on CD.
Audits – Annually turned into District office by August 1st every year along with the Audit Supplement. Signatures of Pastor, Finance Chair required. – Any accounts in your church should be included – except for UMW.
Budgets – Pg

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.

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 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
Reporting – Regular, monthly is recommended, reporting of all receipts and disbursements that flow through the books is one of the most important responsibilities.
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.

11. 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 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.

12. CHAIRPERSON OF THE COMMITTEE ON FINANCE 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;

13. CHAIRPERSON OF THE COMMITTEE ON FINANCE 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 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.

14. 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

15. ANNUAL AUDITS
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.
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.

16. 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?
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?

17. COMMITTEE ON FINANCE ANNUAL CHECKLIST
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?

18. COMMITTEE ON FINANCE ANNUAL CHECKLIST
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?

19. OTHER - MISCELLANEOUS Computer Back-Up
It has been known for computers to crash, churches to have fires, and tornadoes to blow churches away in Oklahoma and Kansas
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.