Uniontown Bible Church. Stewardship Manual

Transcription

1 Uniontown Bible Church Stewardship Manual 1 of 15 UBC Stewardship Manual 5/28/2009

2 TABLE OF CONTENTS Introduction... 3 General Rules and Guidelines... 4 Procedures for Spending Money... 7 Procedures for Depositing money...10 Paying taxes when buying goods or services for the church...11 Sample Form SPA...11 Sample Form SPA...12 Sample Form SPF...13 Sample Deposit Form SPA...14 Stewardship Covenant of 15 UBC Stewardship Manual 5/28/2009

3 Introduction We want to avoid any criticism of the way we administer this liberal gift. For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of men (2 Corinthians 9:21) When the apostle Paul wrote these words, he was referring specifically to the manner in which he and others were handling the financial resources that the Lord had made available for ministry. Paul was traveling with Titus and an unnamed brother chosen by the churches that had contributed the offering they were carrying. The implication is clear that this unnamed brother was chosen to accompany Paul and Titus in order to ensure that there would not be any question about the manner in which the offering was being administered. The verse quoted above makes it clear that Paul welcomed this accountability. It is in this same way that we want to administer the resources that the Lord has made available to Uniontown Bible Church, avoiding all criticism and demonstrating our desire to honor the Lord. This manual is designed to give guidance and direction to ministry leaders in the handling of the liberal gift God has blessed us with in order to further His kingdom. The fiscal policies and procedures that have been developed help to promote accountability and good stewardship. Whatever God has in store for us whether it s a new facility, expansion of existing ministries, or moving in directions we can t even imagine good stewardship is essential. By following the principles of good stewardship, we have a clear financial picture of where we have been at the end of each fiscal year, and this enables you and the rest of the leadership to make informed decisions regarding the next year s budget. Good stewardship is an important way by which we acknowledge to God and man that we recognize that the resources are God s, not ours. Please keep this manual handy for future reference. As a ministry leader you are responsible for seeing that we honor God and appear upright before man, in the way we handle His money. Please take this responsibility seriously and take great care in this area of your ministry at UBC. After reading through this document carefully, please sign the covenant on the last page and return to the Church Office. Thank you for your desire to serve our gracious and generous Lord! 3 of 15 UBC Stewardship Manual 5/28/2009

4 General Rules and Guidelines 1. Why do we have a budget? A budget is a spending plan. Poor planning (or no planning) is poor stewardship. The church needs a plan so we can use resources wisely, monitor our overall financial health, and plan for the future. 2. How are the ministries budgets organized? Some ministries consist of one line item, or spending description. However, most ministries budgets are comprised of multiple line items. There is a specific budgeted amount for each line item. When added together, the sum of the line items within each ministry equals the total amount budgeted for the ministry. 3. How are budgets prepared? a. The budget planning process begins around April. The fiscal year cycle for the budget is from June to May. Ministries who have a budget are responsible for completing their inputs by the date provided by the Executive Pastor as approved by the Elders. Ministries that do not turn in completed budget inputs on time are at risk for not receiving the appropriate funds for their areas of oversight. The budget approval cycle runs as follows: i. Letter distributed to oversight person(s) outlining budget process and dates of inputs needed by. i iv. Oversight persons submit inputs to the Executive Pastor. Executive Pastor consolidates inputs, reviews and submits draft budget to the Elders for review. Changes to inputs, questions and feedback from Elders is distributed to the oversight persons where necessary. v. Oversight person(s) must respond to the changes with additional information, feedback comments, etc. by the given date. vi. v Final budget is prepared by the Executive Pastor and submitted to Elders for final review. Budget approved and SPA (Spending Payment/Authorization) generated for Oversight Persons. b. Spending can commence on June 1 st. We realize that spending against an upcoming fiscal year budget might be needed. Please contact the Executive Pastor if you feel this applies before you spend the funds. 4 of 15 UBC Stewardship Manual 5/28/2009

5 4. How much can I spend in my ministry oversight area(s)? Is overspending ever allowed? a. The budget is your spending plan for the fiscal year. It is understood and assumed that we will under-spend in some ministries and over-spend in others. If every ministry comes in under budget, it probably means that leaders are padding their budget requests to see that this happens. That is definitely not good stewardship and makes budgets unrealistic and of little value. As a rule, good planning by ministry leaders will result in most ministries spending being fairly close to what is in their budgets. Leaders should not have a use it or lose it approach just to spend the money. On the other hand, when the Lord gives us new ministry opportunities we need to be ready to respond, including with resources if necessary and available. Don t be reluctant to discuss a ministry idea that God has placed on your heart just because it s not in the budget. The budget is meant to serve the ministry, not the other way around. However, good stewardship does mean living within our means. 5. Do I have to worry about each line item within my budget, or just the total? a. Ministry leaders need to monitor both. Leaders can be guided by the following: i. Line item spending that does not exceed 120% of the budgeted amount is acceptable and does not require additional authorization, providing that the total spending for the ministry does not exceed 110% of the total budgeted amount or $200, whichever is LESS. i Spending must be charged to the line item to which it applies. (In other words, do not charge apples to the oranges line item because you have spent all of your money for apples!) As soon as it is anticipated that the spending for the ministry may exceed the above parameters, bring this to the immediate attention of the person overseeing the ministry. Do so before the line item is exceeded. 6. Whom should I call when I have questions about these matters? a. For most questions, begin by contacting the person with oversight responsibility for the ministry. b. Reports on spending in your ministry area are distributed weekly. If you have a question about your area of spending oversight, call the Church Office. c. If you are an oversight person, please contact the Executive Pastor for assistance. d. Please DO NOT call the Treasurer directly for any matter related to spending. 5 of 15 UBC Stewardship Manual 5/28/2009

6 7. Who can spend money? a. Only the individual identified on the Spending/Payment Authorization (SPA) form can authorize the spending of money. That person can delegate responsibility to someone else to make a specific purchase, order supplies, etc. However, the leader identified on the SPA form is responsible for spending in areas that he or she oversees, and this authority should be delegated within clearly defined parameters and with appropriate monitoring. b. Only the oversight person identified on the SPA form can sign the form and authorize the spending. This person is responsible for monitoring spending in each line item and overall spending for the ministry, according to #4 above. 8. What s the difference between the General Purpose Fund and Special Purpose Funds? a. The General Purpose Fund (GPFund) is the fund to which most of the giving (offerings) is credited. All budgeted expenses are paid for with GPFund money. All ministry activities that have an annual budget are GPFund ministries. b. Special Purpose Funds (SPFunds) are fund s often referred to as designated giving funds. There are 3 Special Purpose Funds: i. The first type is the Caring Fund. These funds (also referred to as a Benevolence Fund and are used to care for special needs of families and individuals inside and outside the church. For more information on the Caring Fund, please call the Church Office. i The second type is the Building Fund. These funds are used in direct support of the building program. The third type is the Missions Trips Fund. These funds are used to support the local and international mission s trips supported by UBC. 6 of 15 UBC Stewardship Manual 5/28/2009

7 Procedures for Spending Money 1. General guidelines for SPENDING money a. Checks are issued according to the steps described below. It is important for leaders to plan ahead (good planning = good stewardship) and utilize the regular process for getting checks and having bills paid. In truly extraordinary circumstances that are beyond your control, you may call your oversight person and request an emergency check. For most ministries this should never happen. b. All forms should be completely and accurately filled out. Failure to do so will only delay the approval process and could result in late payments to you, your team or to the suppliers we use. This is not a good witness. c. Put all completed forms in the Executive Pastors mailbox only. (Sundays are for worship, not discussing financial matters) d. The oversight person must authorize the spending in advance. e. Forms and receipts MUST be submitted within 60 days of the incurred expense. We are penalized by not meeting certain deadlines on payments and this does not reflect good stewardship and responsibility. It is expected that all forms, whether invoices or reimbursements, will be submitted in a timely manner. f. Please make copies of each SPA form you submit for your records. This helps us reconcile or correct postings that were not accurately done. g. UBC Staff or Members that have UBC Credit Cards are NOT permitted to use these for personal purchases. h. Reports for both SPA and SPF spending are electronically submitted to each oversight person each week. We suggest you review these for errors and as a means of tracking your spending and available funds. 7 of 15 UBC Stewardship Manual 5/28/2009

8 2. General Purpose Fund spending a. All spending must be pre-approved and budgeted for. Do not spend money on items not planned for, without approval. General rule of thumb if you didn t plan it don t spend it. b. The SPA form (see page 12 for an example) must be fully completed. All areas on the form must be completed. i. Indicate the amount(s) on the line item(s) identified on the form under the Current Expense column. i iv. The Submitted by signature can be someone other than the oversight person, but the spending must have been pre-approved. Be sure to indicate the Date as well. The Description of nature/purpose of expense must be completed. This should clearly define what the expense is for. Payment Instruction must be selected. Be sure to include this, so that we ll know who and how to make the payment. v. For each line item there is a specific oversight person identified on a corresponding Spending/Payment Authorization (SPA) form noted as Authorized By at the bottom of the form. Only this person can approve spending and only this person can sign this area on the form. c. All appropriate documentation (receipts, etc.) MUST be attached to the back of the form. Please do not staple receipts to the front of the form. No SPA form should be submitted without some form of supporting documentation. d. All completed and signed forms are to be placed in the Executive Pastor s mailbox for review, approval and payment. e. All SPA forms received by Thursday at 2 p.m. will be paid by the following Sunday. Reimbursement checks will be available or mailed on Monday. f. Generally, spending occurs in the following ways: i. Determine the cost of an item or service in advance i iv. Be certain that the item is planned for and approved by the oversight person. Submit the request far enough in advance to get the proper payment form (check or credit card). Please don t make every situation an emergency. Submit an SPA form with a bill or invoice ready to be paid. 8 of 15 UBC Stewardship Manual 5/28/2009

9 v. If you purchase something for which we will receive a bill, invoice, or statement later, please wait until you have all the necessary attachments, before submitting the SPA form. Do NOT submit an SPA form without the supporting documentation. vi. Some purchases are made by credit card. Be sure to attach a copy of the credit card receipt with the SPA form. Be sure they are legible copies. 3. Special Purpose Fund spending a. The same general procedures are followed as in #2 above, with the following exceptions: i. An SPF form intended for the Special Purpose Fund expenses must be used. See example on page 13. Please refer to the individual Designated Fund s Policies with regards to allowable spending. 9 of 15 UBC Stewardship Manual 5/28/2009

10 Procedures for Depositing money 1. General Guidelines a. General Purpose Fund deposits would include any money to be credited to a budgeted line item. i. Examples might be money collected from small group participants who have purchased their own workbooks, money charged for an event (Father/Daughter dance) to help cover expenses, etc. Designated giving towards a budgeted area is not permitted. Contributions directed to budgeted items or to individuals will be deposited as general giving. Designated giving is only permitted towards special purpose fund areas (see below). b. Special Purpose Fund deposits would include any money to be credited to a designated special fund. i. This could include funds designated to an upcoming mission s trip or a special donation to the building fund. 2. The Deposit Process a. Place the following in an envelope: i. The cash or checks to be deposited. Take the corresponding SPA or SPF form (the form with the corresponding line-item or area where the money should be credited to) and write the word DEPOSIT boldly across the top of the form, and the amount to be credited noted adjacent to the appropriate line item(s). See example on page 14. b. Seal the envelope and place it in the offering plate on Sunday morning during worship. Do not give money to other individuals. Envelopes may also be dropped off during office hours and given to the office manager (ONLY) for deposit into the safe. 10 of 15 UBC Stewardship Manual 5/28/2009

11 Paying taxes when buying goods or services for the church It is not necessary to pay Maryland state sales tax for goods and services purchased for the church. Included in this manual (see below) is a copy of the church s tax exempt certificate for you to use. You must have this with you and present it when a purchase is made in order to have the merchant or service provider not charge us tax. As a Church, we are tax exempt. Please do this for every purchase. $50,000 in spending without using the exemption results in $3,000 of unnecessary tax paid and money lost for ministry! 11 of 15 UBC Stewardship Manual 5/28/2009

12 Sample Form SPA This is an example of a Spending/Payment Authorization (SPA) form for a General Purpose Fund (GPFund) budgeted expense. Note that the form is filled out completely, the description of the expense is clearly noted, and the appropriate documentation and/or receipts should be attached. It is also clear how and to whom it is to be paid, and it is signed by the leader who oversees this ministry. 12 of 15 UBC Stewardship Manual 5/28/2009

13 Sample Form SPF This is an example of a Spending/Payment Authorization (SPA) form for a General Purpose Fund (GPFund) budgeted expense. Note that the form is filled out completely, the description of the expense is clearly noted and the appropriate documentation and/or receipts should be attached. It is also clear how and to whom it is to be paid, and it is signed by the leader who oversees this ministry. 13 of 15 UBC Stewardship Manual 5/28/2009

14 Sample Deposit Form SPA This is an example of a deposit to be credited to a budgeted General Purpose Fund (GPFund) account line item. For this, use the corresponding Spending/Payment Authorization (SPA) form (the same form used to pay an expense). Note that it is clearly marked DEPOSIT, it is filled out completely, the source of the money is noted, it is clear to which line item the money should be credited, and it is signed by the leader who oversees this ministry. This form and the cash & checks to be deposited would be placed in a sealed envelope and put in the offering basket on Sunday morning. (Do not give cash or checks to any one else.) * Note deposit s for SPF related items are to be made by using Offering Envelopes or by Check with the appropriate fund clearly written on the memo line. SPF funds include Caring Fund, Building Fund, Missions Trip Fund. 14 of 15 UBC Stewardship Manual 5/28/2009

15 Uniontown Bible Church Stewardship Covenant I have read this manual in its entirety. I agree to fully comply with all the processes and procedures outlined within it and I will commit to handle the liberal gift God has blessed us with in order to further His kingdom. Name: Date: 15 of 15 UBC Stewardship Manual 5/28/2009