Exchequer Church Group or Senate 0909-03 ZZfwi

                              TO:   All Interested Onliners                                                                                            FROM: Jim Bramer. Retired CPA-Auditor
                                                                                                                                                                              FILE:  0909-03/fwi

                               RE:  Exchequer Senate or Church Group                                                                   Originated March 2001

  
   Today's  "Ax to Grind"  is directed to Churches and has to do with approval by a Church Congregation of it's annual budget.  I am more and more convinced that once a Church has an annual operational budget of $1,000,000 or more, it is not good stewardship for only the Leadership Board to approve or to take it to the Annual congregational meeting and ask them to understand and approve it, etc. Maybe you have noticed how few members of the congregation attend the "open to all" preliminary budget meeting that is designed to interact in depth with interested parties.
     I believe that this function should be assigned to a representative group that I call the  Exchequer Senate.  This group is other than the Leadership Board (Board of Elders, etc) and functions only in approving Budgets as a mirror of the Church Congregation.  See below for more specifics.  Please Click Here  for more information about the term  Exchequer.
    Reasons for this approach include:

  •   Please note the following scenario: 

    •     Many churches have their  annual meeting before the fiscal year ends. Example: a year ends April 30, and the annual meeting is held a few weeks before April 30. Of course, the primary reason for this is to approve spending before it happens ... or in order to appropriately spend for May 1 forward,  you need to have congregational approval of the annual budget before then. 
         This proposed       Exchequer Senate  system  would overcome this oddity and allow at the annual congregational meeting a Church to fully look at what has happened during the past 12 months in all areas of the Ministry (including 12 months of finances) plus what they hope to accomplish in the next 12 months.

  •   Most Church members attending annual meetings have little interest or grasp of such church finance matters and can not be good stewards and vote as wisely as they should.  Very few attend preliminary church budget information sessions. 

  •   It is very important that finance matters be focused and understood, but most people are not comfortable asking finance type questions at annual meetings where many are present. And it may not really be the best use of the limited time.

  •   It is awkward to call a Congregational meeting when budget changes (as authorized by the Finance Policies) are needed throughout the year.

  •   Plus, for whatever reasons, and all too often, especially at periodic/annual meetings, Church finance issues can be used of Satan to cause disruptions and mis-understandings.

  The term " Exchequer Senate"  is used because of such things as the following:

  •   Like other "Senates"  two interested and qualified people are elected to represent a single Board defined Church group.

  •   Exchequers would be representatives ( Reps ) of these various Church groups.  They would be communication channels as interested people within these Church groups have Church budget questions and/or input both during the year and annually.  Exchequers  Reps would obtain needed financial information during the year to understand and share such matters.

  •   Church groups electing Exchequers Reps would include:  Applicable  Sunday School (including Young Adults) classes or Flocks. This could include Ministry groups, like the Adult choir.

  •   The Board Treasurer, or his appointee, would be an ex-officio voting member as this person functions as the Exchequer Senate chair.

  •   CLARIFICATION:  This proposed " Exchequer Senate"  group is NOT the operational Board Finance Committee, or Ministry Finance Team that is defined when you  go here .  Of course, each church member would continue to have access upon request to the annual financial reports and any questions would be appropriately answered.  Ideally, during the year finance issues and questions would flow through their Exchequers Rep.

   Qualifications and/or responsibilities could include:

  •   The Exchequer Senate meets at least annually as a group as they take the place of a Congregation  in having the final say in approving the Church Budget as submitted by the church staff and Leadership Board.  As if they were a Church congregation, they would also be available during the church year to care for Leadership Board  approved Budget changes as required by the Church's Finance Policy manual. 

  •   An elected Exchequer  Rep would have to be a regular member of that flock and a church member .... preferable for more than one year, plus any other requirements like that of a Church Deacon, etc..

  •   An Exchequer  Rep , as nominated by these adult flocks, is elected once a year by the Congregation as they serve for the upcoming Church year only.  Like other elected officials there may need to be term limits, etc.

  •   Again, as representatives of the Congregation  this Exchequer Senate might be given the responsibility to appropriately approve such matters as loans or certain unusual purchases.  

  •   There might be merit for certain Staff members to be non voting  Exchequer Senate  ex officio members 

K E E P   L O O K I N G   U P !!

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UPTD: April 27, 2008

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