- - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                              TO:  Interested Ministries                                                                                                   FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                                FILE:  0015-01/all  

                               RE:  Treasurer and Chief Financial Officer                                                                   Originated:  November 1984                 

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    The Ministry volunteer Board Treasurer and the staff Chief Financial Officer (CFO) of larger Ministries MUST be kinsman with a oneness of spirit and purpose. It is critical that these two Ministry officials work closely together and have effective communication as they complement one another with regard to Ministry business and fiscal affairs.  In our some four decades working with Ministries as a CPA-Auditor Consultant we have found this is NOT always the case.
    First, I trust we all recognize that the CFO staffer sometimes goes by titles like: Business Manager, or Administrator; Financial Vice President and other like titles.  In some cases they even go by the title Staff Treasurer. Click here for some comments to a fellow CPA who is a CFO Staffer.
    Titles are not always that critical, BUT what is critical is that responsibilities are written down, understood, and appropriately assumed by the applicable official.  Hopefully the following will assist the two of you along these lines.

	T A S K S:				Vol Treas	C F O
>>The overall Corporate Finance Leader -- especially
	is NOT HONORARY in posture.				_____	_____
>>Sees that appropriate attention is given to
	finance policies and procedures.				_____	_____
>>Is the one responsible for effective communication
	regarding business and fiscal matters to.
	the governing Board.				_____	_____
>>Understands and presents Financial reports at
	meetings of the governing Board				_____	_____
>>Chairs the Board Finance Committee or its
	equivalent				_____	_____
>>Chairs the Board Audit committee, or its
	equivalent.				_____	_____
>>Takes leadership in seeing that the Ministry
	stays within spending boundaries				_____	_____
>Has a significant role in concluding fund obtainment
	philosophy and  practices.				_____	_____
>Carefully monitors Ministry fiscal trends; anticipates
	the financial future.				_____	_____
>>Gives leadership in seeing that there are fiscal
	internal controls and security.				_____	_____
>>Makes sure that the Ministry has the appropriate
	Fund Accounting computer system.				_____	_____
>>Is responsible to see that appropriate officials
	get relevant and timely financial facts
	to those who should know.				_____	_____
>>Sees that the Department Heads plan ahead
	financially				_____	_____
>>Deals with Department Heads regarding their
	spending limits				_____	_____
>>Manages deposits for appropriate yield.					_____	_____
>>Manages amounts due the Ministry to insure that
	they are timely received.				_____	_____
>>Sees that debt is used prudently; debt is a tool (blessing; not a tyrant (curse) as you pay your
	bills when agreed.				_____	_____
>>Properly maintains records to insure safety and
	accountability of such non-cash assets as
	merchandise inventories and Land, buildings
	and Equipment				_____	_____

    The following "Please Do" and "Please Do Not" items might also provide assistance to the two of you.

		PLEASE DO				PLEASE DO NOT
1>	Be the person who defines, owes				a>	Do the work of the paid staff; or allow
	and understands the financial statement					the staff member to be the primarily source
	presented to the board, constituents					of financial information to the Board and
	and interested publics.					other parties.
2>	Sees that operating income/expense				b>	Be ambiguous regarding financial
	capital projections, budgets are timely					information expected of the paid staff.
	prepared, adjusted and monitored against what actually happens.
3>	Anticipates the financial future as much				c>	Permit any controllable financial
	as is humanly possible; sees that					surprise --- either good or bad.
	board understands the financial impact
	of its actions.
4>	Sees that financial policies are defined,				c>	Laboriously present extraneous financial
	communicated and followed.					information to those who should know
						the financial status of the Ministry.
5>	Function as Chairman of the Finance/				d>	Abdicate to the either the Chief Executive
	Audit Board commissions.					or the Business Officer the primary task of
						"knowing what is going on financially."
6>	See that the tangible assets are				e>	Unwittingly permit the Ministry's
	safeguarded and all potential liabilities					expenses to exceed its income; or to
	are recognized.					incur unauthorized obligations or debt.
7>	Be responsible for Ministry investment				f>	Forget to utilize what other Finance/
	of temporary funds; obtain maximum					Audit commission members have to offer the
	yields for deposits.					Ministry.
8>	Thoroughly understand the nature and				g> Permit fellow Board members to be
	scope of restricted donations.					ignorant of the financial status of the Ministry

    Many volunteer board members come from different backgrounds and are not acquainted with finances within a Non Profit Ministry.   Such differences should be clearly updated on a regular basis.   Example, money in the bank might be all spoken for and not really available to pay the usual bills and care for the next payroll.
    The two of you are "soul"-mates on a very important mission. Our prayer is that these tools will assist you to also be effective "team"-mates.

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        The bulk of this Publication originated in November 1984 and was   UPTD: May 02, 2008  .

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      (1) An Onliner Document, 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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