This process allows me to share some rather personal comments/thoughts (and sometimes written Prayers)  about Ministry Finance issues during this month.  Please go to  0200  for further explanation and links to earlier JIM's JRNLs.  The four digit links  xxxx  below come from www.bcidot.org sources.  See list of Ministry Finance Lingo", or "Frequently Used Vocational Terms" at the bottom of this document.  If you would like to receive the upcoming JIM's JRNL  during the first week of the next subsequent month,  please join the following Yahoo Group:   ---- http://groups.yahoo.com/group/JIMsJRNL/.    Caution --- the non  www.bcidot.org  web links that I reference below do NOT necessarily imply my endorsement.  Further, if any of the links below do not work, let us know which one at LINK@bcidot.org.  Incidentally,  our more recent www.bcidot.org  Web Docs, or writings, can be found at 9712. and 9716.  

A L I C E  (Assets, Liabilities, Income, Capital and Expenses)  (1)                 

       Sometimes the terms debit and credit can be confusing - even to accountants and bookkeepers.  Therefore the following lady (A.L.I.C.E.) might help you to better understand the inter-relationships of debits and credits in giving effect to financial transactions. 

                                                                                      .....The A.L.I.C.E. FORMULA .....

        It seems best to emphasize the increase and decrease aspects of transactions. Following the A.L.I.C.E. formula above; let's say you wanted to complete these double entry bookkeeping entries ---

    1> For a deposit of $1,000 of Donations Income (I) to the Bank (A); you would increase the (A) with a debit of $ 1,000 and increase the (I) with a credit for the same amount.
    2> Purchase of $100 of supplies via your Credit Card would result in: Increase of (E) as a debit of $ 100 and an increase in what you owe (L) as a credit for the same amount.
    3> Payment of that $100 on your Credit Card would go like this: Decrease your (L) via a debit of $100 and a Decrease in your Bank (A) as a credit for the same amount.
    4> Payment of $500 for a chair with a check goes like this: Decrease your Bank (A) by a credit of $500 and Increase your Furniture Account (A) as a debit for $500.

    Give this lady honor and respect  ---- she is foundational to "accountability" and finance reporting issues. Oh, by the way, those of you who use Quickbooks (QB) could benefit along these same lines by going to  0629 and discovering how they attempt to account for transactions in a "non-debit/credit" fashion, etc.

CHIEF FINANCE OFFICER of a Ministry 0014-01 (2)

    Perhaps the sharing below of an edited Inter-Office Memo to a fellow CPA might be of interest to you.

==============================================================================================================

TO: CPA Marty xxxxxxx                                                                                    FROM: Jim Bramer

RE:  Observations                                                                                              DATE xx/xx/xxxx

    You are a very capable Certified Public Accountant (CPA) professional, Marty ...... you obviously have training, experience and people skills from which to build.  You do a good job of expressing yourself and getting your point across.  Since you are now serving on the staff of XYZ Ministry, my prayer is that this memo,  from this 'ol codger' fellow CPA-Auditor, will encourage you to function as a Ministry Chief Financial Officer (CFO) with even further professional excellence as unto the Lord.
    You guessed it, Marty .. this memo has the same theme that we discussed recently ---- namely, that you discover how to be less of a financial "transaction processor" and more of a trainer/teacher and a "result of transactions interpreter."
    My definition of a Ministry CFO is the Ministry staff person whose primary tasks include the following:

•    View the "big picture" financially ..... not necessarily be the finance transaction processor or historian.
•    Be the needed corporate financial planner .... evaluate the financial impact of the immediate and future plans of the Ministry.
•    Make financial system conclusions ... design and implement methods re:  >  Accounting system infrastructure; > Periodic and annual reporting of ministry finances to those who should understand and make fiscal decisions; > computerization of any of the foregoing.

    Non-CFO titles might include Business Manager, Comptroller, Office Manager, Internal Accountant. Regardless of the title, the job involves being a financial transaction:  

1. Communicator
2. Interpreter
3. Authorizer
4. Processor
5. and Historian

    I encourage you to - - - -

  >>   Concentrate on being both a Communicator and also an Interpreter ---- granted you need to do a portion of  the other work to intelligently be of service, but, in my view, the real professional value of serving as a Ministry CFO is for you to help others understand what has happened financially (past history) and the financial consequences of projected plans (probable future).
  >>   Exercise the fine art of "this financial info does not look quite right ... let's look into that more deeply"; thereby insuring the decision makers of reliable financial reports for wise judgment.
  >>   Adhere to the following truism, or principle: "Enter a verified number once, then the system replicate it in the appropriate manner."  Too often, I find that numbers are inefficiently entered, posted, transferred, combined and reported.  Use the many fine tools and resources (primarily computer systems) to maximize this truism.
 >>    Know about and utilize contemporary computer systems that reduce the amount of paper that is processed in accomplishing your job as a ministry finance practitioner.
>>    Focus on being an instructor/trainer of less qualified people than yourself as they do the processor/historian tasks so you can zero in on being the professional that you are.  The emphasis is to be sure that things are done the way you want them done, but not necessarily do them yourself.  Believe me, most of the time it is NOT efficient to do it yourself and "make sure it is done 100% right."  For example, if three people were following your instructions and doing it just 90% "right", think of how much more is getting done by all of you.

   I wish you well, Marty, as you serve Him !!

=====================================================================================================

Electronic Filing of Form 990 (3)

        Please see what the IRS says on this topic by going to:   http://www.irs.gov/efile/article/0,,id=108211,00.html   The content of http://www.independentsector.org/edin/index.html  will also be of interest.

Flagable Financial Issues (0002-08) (4)

        We are finding that a number of Ministries .... are struggling financially.  We hope, as you go through the list below,  that you do NOT have a number of "Red" FLAGABLE Financial Issues.

	F I N A N C I A L   I S S U E S:	Green	Yellow	Red
1>	There is not enough income for the Board authorized	____	____	____
	expenses of the General Purpose Fund-GPFund.
2>	The  Ministry Finance Team  is not functioning well	____	____	____
3>	The financial record keeping is not good. Such info is not	____	____	____
	timely nor is it understood by those who should know.
4>	The GPFund is having to borrow from non discretionary funds	____	____	____
	(especially donor designated Special Purpose Funds
	SPFunds) in order to meet expenses.
5>	There are few finance savvy people on the Board of Leadership	____	____	____
6>	Staff members are not getting paid timely	____	____	____
7>	The rent (or mortgage payment) is behind	____	____	____
8>	The withheld payroll taxes are not paid timely	____	____	____
9>	Unpaid bills are 60 to 90 days old	____	____	____
10>	Operations are being funded by sale of assets	____	____	____
11>	The Ministry Executive (usually a Pastor) has little expertise	____	____	____
	in ministry finance matters.

        But if above  "Red"  FLAGABLE  items dominate, please review this more in depth at  0002 and contact me at JimRetCPA@bcidot.org  about some possible ways for you to get some help.

QBooks Internal Control Weaknesses (5)

        I recently shared  0647  with members of http://groups.yahoo.com/group/qbunch .  In this document I point out that there are some inherent Internal control weaknesses in QBooks products; primarily due to their being so "User Friendly."   If you are a QBooks user, please be mindful of such matters and make the necessary adjustments.

Designated Giving Guidelines at a Church (6)

 Explanation or possible "Ministry Finance Lingo", or "Frequently Used Vocational Terms" appear below:

            CBA = Church Business Administrator, CBAer;  CMS = Church Management Software/System;  CPA = Certified Public Accountant;  GAAP = Generally Accepted Accounting Principles/Practices;  GPFund or GPF = General Purpose Fund; MFTeam or MFT= Ministry Finance Team;  QBOE = QuickBooks Online Edition;  QBooks or QB = Quickbooks; SPFunds or SPFs = Special Purpose Funds

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Click Here and go to a list of earlier JIM's JRNLs - Contact JimRetCPA@bcidot.org

This document was updated last on:  December 08, 2006