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                              TO:  Interested Ministries                                                                             FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                          FILE:  0005-01/all

                               RE:  Self Evaluation re Ministry Finance Issues                                   Originated:  September 1997

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       Preface

    As pointed out in a recent Editorial , we have for the past couple of decades encouraged Ministry Boards and their Ministry Finance Teams,  or Board Finance Committees (FinCom's), to do appropriate Ministry Finance self evaluations.
    Your Ministry can accomplish this via one of the vehicles that follow.

WHEN and/or HOW

At a Board of Leadership Retreat or meeting time.

         See the above Self Examination Editorial where we mention such items as:

         Conclude what are financially important issues;

• Circulate a list to each Board member;
• Who independently grades these important issues;
• Agree together as to poor grades;
• Conclude what should be fixed to get good grades;
• More Income is not always the issue.
• Determine a strategy for getting improved grades.

Possible Important Issues include:

• Timely communication of complete financial information,
• And this info is understood by all financial decision makers;
• Appropriate financial systems and infrastructure;
• Schar (School Acct Rec) policy and administration;
• Fund Raising Philosophy;
• Spending limits;
• Internal Financial controls over such transactions.

At a FinCom or MFTeam meeting time.

        During the appointed time at the meeting, please complete the following and give to your Chairman:

A> Please rank below your opinion of the most important Financial issues the Ministry now faces:

 More Operating Income ____________       ________

 Funding for Expansion ____________       _________

  _______________________________       ________
 _______________________________       ________

B> Please rank below your opinion of the most important unfinished business of this Committee:

Written finance policy manual   _______     ________

Others, please name below:
________________________________        ________
________________________________         ________ _______________________________          ________
________________________________       ________
_______________________________         ________
________________________________        ________
_______________________________         ________
________________________________       ________
________________________________       ________

C> Please issue grades on a "A" to "F" basis for the following items:

• The adequacy of financial reporting to all who
•     should know.                                            _______
• The adequacy of financial planning and financial
•     projections for the future.                           _______
• Overall protection of organizational assets.     _______
• This committee involvements in "Big Picture"     
•      issues and not minutiae.                          _______
• Reduction of time at Board of Leadership meetings
•     on necessary finance matters because of the
•     function of this Committee.                        _______

D> Further Comments:

• ____________________________________  ________
• ___________________________________    ________
• ____________________________________  ________
• ___________________________________    ________

Evaluation of Internal Financial Reports (1)

    There are concerns below.  Their 10 committee members independently responded with their "A to F" grades when then answered "The periodic Financial Reports that I receive".......

					A-B	C	D-F	Total
1> Provides me with adequate, timely
and relevant information so as a
"decision maker" I can be properly
informed.					2	6	2	10
2> Shows me from where assets (Income)
come and where they go (Expenditures)
for a specified "from and to" period
of time.					5	5		10
3> Informs me of the status of assets
(Including Non-cash assets like
Receivables and Land, Buildings and
Equipment as well as Cash) and
financial obligations at a certain
point in time.					2	8		10
4> Lets me know where we are financially
in relation to where we should be ---
Actual to Budget, etc.					3	5	2	10
5> Informs me sufficiently in advance
of financial "trends," or directions.					0	2	8	10
6> Meets my own personal needs to the
following degree.					3	3	4	10

              Would you say this MFTeam has some work ahead ???
              Please go to  0075  for more details about the MFTeam grading itself, etc.  

THRUST

    The reasons/purposes for going through these exercises should be quite obvious!  Further, we trust you can say "Amen" to the following:

•      We have current and relevant written financial policies.

•      The Board, as a whole, senses financial responsibility - it is not born primarily by Staff and the CEO.

•      We review and approve annual budgets or fiscal projections.

•      Our financial statements are regularly received and are well understood by Board members.

•      We see that all organizational fiscal assets are well protected.

•      We have a well functioning Finance/Audit Committee. 

•      Our Board Voluntary Treasurer, is NOT largely 'honorary'; this person leads in fiscal matters rather than the staff or the CEO.

•      The desired professional financial help (not necessarily a Ministry savvy CPA) is utilized.

•      We have a 'feel'  for our legal and fiscal responsibilities as Board Members.

•      We make all necessary government reports.

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  The bulk of this Publication originated in September 1997.   UPTD: November 14, 2008  

HOME  |  ABOUT  US   |    OUR PURPOSE   |   SITEMAP   |  COMPUTER FUND ACCTG  |  HELPS  |  GLOSSARY

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      (1) An Onliner Document, or WRIT  (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
        (2) WRIT formats include the perspective of    Jim@bcidot.org   via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and  FAQ, response to Frequently Asked Questions

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