CHURCH FINANCES 8000 SERIES

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Scot Austen Ryan
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1 CHURCH FINANCES 8000 SERIES 8001 Philosophy It is the belief of Blakemore Church that procedures should be established in the handling of the church finances that will provide minimal safeguards to protect the church as well as its members and employees. (Adopted 12/20/99) 8002 Church Officers 1. The officers shall be the Treasurer, the Trustees Chair, the Parish Council Chair, and the Pastor. 2. Those who serve as officers shall be Blakemore members. (For purposes of this policy any clergy appointed to Blakemore by the bishop shall be considered a member.) (Adopted 12/20/99) 8003 Funds General Fund 1. The treasurer shall oversee the receipt and expenditure of all funds accounted for through the church budget. Upon approval by the treasurer, in-and-out (clearing) accounts may be set up for groups such as the Child Care Center, Eyeball Construction and Frozen Assets. 2. The treasurer shall be responsible for making a monthly report to the Finance Committee and Parish Council detailing the previous month and year-to-date receipts, disbursements, and balances Benevolent Discretionary Funds Blakemore has designated two funds for benevolences. A. The Communion Fund is funded primarily from loose offerings left at the chancel rail during Communion services, and similar miscellaneous undesignated gifts. The Communion Fund may be disbursed at the pastor s instruction to persons needing emergency financial assistance, without further documentation. It may also be used to purchase gift cards for distribution to needy persons who come to the church seeking emergency assistance. B. The Barnabas Fund is funded by designated (but not restricted) gifts and is designated for church members who have emergency or shortterm needs. The Barnabas Fund is subject to oversight by the Barnabas Fund Committee which is comprised of the pastor and the chairpersons of the Parish Council and Trustees. Any two members of the Barnabas Committee can authorize a distribution from the Barnabas Fund. The Barnabas Committee reports to the church through the Finance Committee. The Barnabas Committee will give deference to all designations by donors, but consistent with the church s tax exempt status, it retains final authority to designate the recipient of all distributions.

2 Memorial Fund Blakemore will receive and manage memorial gifts (cash and non-cash) as below: 1. The Treasurer, Trustee Chair, or their designee will assist donors in making memorial gifts. 2. Any restrictions, limitations or directions for use of any memorial gift must be approved by the Trustees, Finance Committee and Parish Council. This section of Policy does not apply to memorial gifts designated to the Endowment Fund, Restricted Funds*, a special offering** or pledge. 3. A permanent record book of memorial gifts will be maintained by the church s Administrative Assistant showing the donor, the person being memorialized and the date the gift is received. 4. The Administrative Assistant will send an acknowledgement card or letter to the donor (if still living) and the family of the person being memorialized. 5. The donor and the person being memorialized will be prominently announced in the church newsletter. The amount of the gift will not be announced. 6. All funds from memorial gifts will go into a designated memorial fund account to be maintained by the Treasurer. 7. The Memorial Fund will be administered by the Trustees. Any expenditure in excess of $ will be approved by the Finance Committee and Parish Council. Expenditures of $ or less may be approved by the Treasurer and Trustees Chair. 8. Memorial Funds will generally be used for long term (life expectancy of 3 or more years) improvements, additions, maintenance or special ministry needs. 9. Non-monetary gifts, gifts of stocks, bonds or mutual funds will be handled under policy *A restricted or designated fund is any Fund listed under the 1100 series of Assets on the Financial Balance Sheet. **A special offering is a collection (offering) for a single cause such as UMCOR, Golden Cross, Black College Fund or any specific purpose above and beyond the budget Kitchen Funds The Kitchen committee chairperson and the treasurer are responsible for establishing procedures and overseeing receipts and expenditures related to the kitchen Child Care Center Funds The Child Care Center Board of Directors is responsible for the financial operations of the Child Care Center. (See Series 9000) Nearly New Store Funds The Blakemore United Methodist Women organization is responsible for the financial operations of the Nearly New Store.

3 UMW and Blakemore United Methodist Men Funds The United Methodist Women and United Methodist Men are responsible for the receipt and expenditure of any funds raised by them. (Adopted 12/20/99) (Amended 2/19/07) Permanent Endowment Fund The total endowment program of Blakemore church is placed under the jurisdiction and management of the permanent endowment committee created by resolution of the 2000 Charge Conference and charter adopted on same date. (Adopted 4/19/04) The Eyeball Outreach Ministry Fund The Eyeball Outreach Ministry Fund exists to provide support for unbudgeted outreach ministry opportunities meriting financial support beyond budget allocation. The Fund is intended to support outreach ministry by and to persons having limited financial resources and for whom participation in and benefit from such opportunities would not otherwise be possible. The Fund is under the governance of the Parish Council. Decisions regarding use of monies in the Fund are made by the Parish Council on recommendation of the Outreach Work Area. Originally created by Eyeball Enterprises partners Joe Roop and Steve Tippens, the Fund is primarily maintained by contributions of 25% of Eyeball Enterprises labor charges for work done for persons active in the Blakemore ministries. Income from other sources may be added to the Fund from time to time. (Adopted 8/2000; Amended 2/2002) 8004 Bonding The Trustees shall obtain adequate bonding insurance to cover the appropriate members/employees. (Adopted 12/20/99) Selection of Banking Institution(s) The treasurer shall recommend and the Parish Council shall approve the bank(s) used by Blakemore Church. (Adopted 12/20/99) Separate Bank Accounts: Several groups existing under the Blakemore United Methodist Church umbrella desire to maintain a bank account separate from the church account. Blakemore groups are authorized to use the Blakemore tax-exempt number and set up and maintain their own separate bank accounts, knowing they, not the church, are responsible for all transactions, fees, penalties, over-drafts, bad checks, etc. To open a bank account or change financial institutions, the Blakemore Finance Committee and Parish Council must first approve the group and financial institution. (Adopted )

4 To date, the following groups have their own checking accounts: Group Financial Institution Date Approved Blakemore Child Care Center AmSouth Blakemore Housing Trust Pinnacle Boy Scout Troop #17 AmSouth Loan Approval The Parish Council shall be the final authority to approve loans made to the church unless notice is submitted to a Charge Conference of the church. (Adopted 12/20/99) 8007 Sale of Property Upon the recommendation of the Trustees and Parish Council, a Charge Conference shall be called to approve the sale of any property in excess of $10, (Adopted 12/20/99) 8008 Financial Reports During the first quarter of each calendar year, those responsible for the following funds shall provide a financial report for the previous year to the Parish Council: 1. Memorial Fund 2. Kitchen Committee 3. Child Care Center 4. United Methodist Women (including the Nearly New Store). 5. Blakemore United Methodist Men (Adopted 12/20/99, Amended 2/19/07) 8009 Authorized Signatures on Checks The following persons shall be authorized to sign checks: the treasurer, immediate past treasurer, Finance Committee chair, Parish Council chair and others designated by the Parish Council. (Adopted 12/20/99; Amended 2/19/07)) 8010 Insurance The Trustees shall be responsible for recommending to the Parish Council an appropriate insurance program for the church, overseeing the program, and budgeting adequately for the payment of premiums. (Adopted 12/20/99)

5 Coverage of Deductible on Church-Rented Vehicles Blakemore Church will be responsible to pay the deductible in the event of an accident in any car, pickup truck, or van (not to exceed 15 passenger capacity) rented by an authorized member of the church in the name of or on behalf of the church for an official church activity. Any driver covered under the policy must: (a) be at least 18 years of age or older if the rental so requires; (b) have a valid drivers license to operate the vehicle; (c) be free of alcohol and drugs at the time of the accident; (d) promptly report the accident to the proper governmental officials, the rental company and to Blakemore s treasurer. (Adopted 2/19/01) 8011 Receipt of Stocks, Bonds, or Real Property Gifts of stocks, bonds, mutual funds, or real property from individuals, estates or other entities shall be gratefully accepted using the following procedures: 1. The Treasurer, Trustee Chair or his/her designee will assist the donor or his/her designee in making the gift. 2. Any restrictions, limitations, or directions for use of such gift must be approved in advance by the Trustees, Finance Committee and Parish Council. This does not apply to gifts designated by the giver to the Endowment Fund, Restricted Funds*, a special offering** or pledge. 3. Gifts of stocks, bonds, CDs and/or mutual funds will be sold as soon as possible after their receipt. A stockbroker or other qualified financial institution may be engaged to receive and sell such gifts. This policy will serve as the standing authorization for the Church Treasurer, Finance Chair and/or Vicechair, and Parish Council Chair and/or vice-chair to act on behalf of Blakemore United Methodist Church. (Adopted 4/17/06.) 4. All funds received through this policy will be placed in the appropriate fund by the Treasurer and administered by the Trustees with the concurrence of the Finance Committee and Parish Council. 5. The Treasurer or Trustee Chair will provide proper acknowledgements. 6. The Trustees shall recommend the use or disposal of such gifts to the Finance Committee and Parish Council. *A restricted or designated fund is any Fund listed under the 1100 series of Assets on the Financial Balance Sheet. **A special offering is a collection (offering) for a single cause such as UMCOR, Golden Cross, Black College Fund or any specific purpose above and beyond the budget. (Adopted 1/25/10)

6 8012 Check Request Procedures A check request form must be submitted to activate payments of bills incurred on behalf of the church and for any funds to be disbursed from the BUMC Checking Account inclusive of the Operating Account and Restricted Accounts. (see exceptions below). No check will be issued without a check request signed by the appropriate person, as approved by the Finance Committee, responsible for the account. In all cases it is the responsibility of the Church Treasurer to assure adequate funds are available to cover the check requests prior to the disbursement. To maintain a positive cash flow and assure the availability of adequate funds to cover incurred expenses, and the amount of the purchase is more than $300 the Check request Form must be approved by the Chair of Finance in addition to the person responsible for the account. If the purchase is not in the current operating budget, complete justification must be attached. This requirement regarding expenses greater than $300 does not apply to disbursements from a restricted account. The check request for such an expe nse does require approval by the person appropriate person, as approved by the Finance Committee, responsible for the account. Exceptions to Check Request requirements: 1. Payroll, employee benefits, employee garnishments, taxes, loan payments, conference apportionments. 2. Contracts such as: insurance, elevator inspection and maintenance, lawn service, exterminating services, HVAC service and maintenance, professional fees 3. Recurring monthly or quarterly expenses i.e. utilities, phone, internet service, postage, copier service and maintenance, janitorial supplies and others as they may exist. 4. Emergency repairs. 5. Specific items pre-approved by Finance Committee and/or Parish Council (Adopted 10/20/08 Amended 10/12) 8013 Pass Through Funds The treasurer, Finance Chair, and administrative assistant shall establish a procedure(s) whereby designated funds to be expended for non-budget items will be accounted for, but for reporting purposes will not be commingled with budgeted receipts and expenditures. Supplementary line items, categories, reports, etc. will be established to provide adequate accounting and reporting to the Finance Committee, Parish Council or other necessary individuals or groups. (Adopted 4/19/04)

7 8014 Blakemore Financial Obligations on Behalf of Individuals or Groups As a matter of convenience, expediency or helpfulness to individuals or groups participating in Blakemore sponsored or sanctioned activities such as retreats, Double Nickel Events, Youth, etc., Blakemore often puts up deposits, pays in advance or makes financial commitments. Individuals and/or groups upon whose behalf Blakemore makes any such financial commitments shall be responsible to promptly pay, or reimburse Blakemore for the total commitment whether they do or do not participate in any or all of the activity or event. (Adopted 12/20/04) 8015 Fundraising The complete policy about Fundraising is contained in Policy No (Adopted 10/21/02)

Great Plains Conference Local Church Report to the Annual Conference (Statistical Report) FREQUENTLY ASKED QUESTIONS

Great Plains Conference Local Church Report to the Annual Conference (Statistical Report) FREQUENTLY ASKED QUESTIONS CATEGORIES A. General Questions B. Membership C. Health Insurance D. Benevolent Giving