FROM: Jim Bramer, Retired CPA-Auditor
RE: Church Finance/Ethnic Ministries UPTD: February 24, 2013
Many areas of our country now have a number of non-Caucasian ethnic groups --- and it is encouraging to see that local Churches and Schools are participating in such ministries. Since culture and languages are unique, we cannot over emphasize the absolute need for clarity regarding the organizational relationship and regarding financial matters. It is one thing for such groups to lease facilities, but quite another if these groups are all a part of one corporate entity.
The following finance 'things' are thought-worthy under these circumstances:
> Each group have a Board of Leadership for operating and budget control; including it's own Treasurer.
> There is an annual agreement in writing as to how much this group pays for overhead expenses such as common staff members, office services and maintaining and servicing the facility.
> There could be a "unified" accounting system under the supervision of your Internal Accountant whereby the various groups would function as departments of the whole. Ideally there is NOT a separate checking account for each ethnic group. This is because they are a department of the overall entity (albeit with their own Leadership Board) and because it promotes togetherness. It is amazing how finances tie groups together, etc .... if they can work together re finances they can work together on most anything.
> Each group DOES make their own deposits and could write their own checks, but ideally they are part of a centralized Bank Account and accounting system which provides timely and complete information re activity within their own General Purpose Operating and their Special Purpose Funds. Please Click here for more Fund Accounting Info.
> There could be one unified Donation record keeping system .... as necessary, this system could readily report on giving by the various groups. But usually each group would have their own computer people database -- that includes giving records, etc.
> The payroll system would be unified with each department (group) bearing its share of the gross pay, payroll taxes and costs of payroll processing.
> If the group is to be completely on their own, then Click Here and conclude if some of such matters pertain this group.
This publication originated in October 1988 and was UPTD: February 24, 2013
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