This process allows me to share some rather personal comments/thoughts (and sometimes written Prayers)  about Ministry Finance issues and matters concerning Righteous Personal Finance for Christians during this month.  Please go to  0200  for further explanation and links to earlier JIM's JRNLs.  The four digit (or sometimes xxxx-xx six digits) links  xxxx  below come from www.bcidot.org sources. 
      If you would like to receive the upcoming monthly JIM's JRNL  during the first week of the 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.  

Committees and Use of Colored Paper  (2)

        When you go to   0205,  0206 and  0029  you will find references to the use of colored paper to primarily enhance committee meetings. For example, this month I was part of a committee meeting where we were reviewing the recommendations of a consultant. We were looking at a lot of papers; i.e., our written policies,  copies of Email, our documents, this person's documents, suggested written methods and procedures, etc. We found that a colored paper group on the same topic was extremely helpful as the seven of us referred to various documents, etc.  You know: "Within the yellow colored paper group, let's talk about so and so on page xx", etc.

Ministry Finance Team   (3)

          As most of you know now, my background is with smaller Christian Ministries and I have discovered that a small active cadre of people really end up being responsible for most of its financial affairs.  Please go to  0093  for some of our perspective on Christian Ministry Fiscal FUEL matters. Ideally the Leadership Board of the Ministry should formally appoint a Board FINANCE COMMITTEE, but that is NOT really how things happen. A FINANCE COMMITTEE does NOT always function effectively, especially for the smaller Ministry .
           Therefore I propose that another group, which I call the M)inistry F)inance Team, MFTeam, must rightfully operate and hopefully carry out the following Mission or Job Description:

                             WHO (is the Ministry Finance Team - MFTeam?)

        The Ministry Finance Team (MFTeam) is a well managed active small group that usually consists of two or more of the following Ministry officials:

• Applicable Ministry Executives
• Volunteer Board Treasurer;
• Internal Computer Bookkeeper;
• Appropriate External Accountants.

                             WHAT (is the MFTeam expected to do/be)?

        Basically to insure that a Ministry is biblically and fiscally righteous and just - Please  Click here  for a link to what one Ministry has shared along these lines out on their web site:

•   Has fiscal credibility with staff; constituency; vendors/creditors; 
•   Has a sound debt philosophy/structure;
•   Is a proper/ethical steward of physical resources; and designated funds.
•   Has methods and procedures to insure that the Ministry Executive (who often is the Founder and "mover and shaker" of the Ministry) DOES NOT make all the financial decisions of the Ministry.  
•   Looks at the 'big financial picture' of the Ministry and not always the minutia.  

                             HOW (does the MFTeam carry out this mandate?)

         We were supplied with the following definition of a Board Finance Committee that equally applies to the more condensed MFTeam; namely, a BOARD FINANCE COMMITTEE is an active Board Committee who has at least the following mission requirements:

•     Has financial policies - they establish and adhere thereto;
•     Is fiscally accountable with integrity and righteousness - no deceptive secrets.
•     Utilize Ministry Finance computerized accounting systems that are appropriately operated by well trained people.  
•     Maintains good communication of fiscal status and affairs.
•     Has timely and well understood financial reports.
•     Timely pays taxes and amounts due to staff and vendors.
•     Is a good steward of financial & physical resources.
•     Has good financial Internal controls;
•     Lives within income and/or budgets.
•     Is auditable by applicable outsiders.
•     The thrust of the MFTeam should NOT be fund raising
•     Is a good money manager.

        As you know, there is a saying that "whoever controls the money controls the endeavor." If there is truth to this, and it is part of your Ministry fiscal culture, then those in control need to be as righteous as humanely possible.  
        I would caution again that the Ministry Founder/President and 'mover and shaker' of the Ministry, should have a great deal of influence ----- but please  NOT TOTAL CONTROL.   No way should this person function as if s/he was the sole proprietor of a business.
        Clarity of fiscal task responsibility is essential; be sure such tasks are identified and then assigned to the appropriate MFTeam member. See the following links for assistance along these lines:  0091  0074 and  0029.
        Finally, I highly recommend that the MFTeam formally meets at least before each Board meeting. One agenda item should be what I call a "MIFI" list ..... or identify the Ministry's M)OST I)MPORTANT F)INANCE I)SSUES -- MIFI.   Further, the MFTeam minutes should clearly state and rank these MIFI items in order of importance.
        My hope and prayer is that your Ministry does in fact have an appropriate and effective Finance Team.   Please bear in mind that the Living Bible states Proverbs 24:3-4 as follows:   "Any enterprise is built by wise planning, becomes strong through common sense, and profits wonderfully by keeping abreast of the facts." 

Church Human Resource (HR) Remote Exam  (4)

        At a local Church where I serve on the Ministry Finance Team,  we had a very positive experience with a Church Human Resource (HR) consultant.   As most of you know, one of the Forums that I recommend within  0078  to interested Churches is the Yahoo ChurchAdmin Forum.  Please note below a copy of my remarks therein about this experience with Al Smith whose Email address is: asmith329@houston.rr.com.

    "I am impressed with the need for middle sized, or smaller
churches, to get some help in knowing if they are handling their
Staff/Personnel matters as they should. Or they probably need some
help beyond the self exam that I reference in the link found at:
http://www.bcidot.org/fwi/0923-03.html#1
    I think people on this Forum should know how you have recently
helped, along these lines, a medium sized California church. Your fee was very realistic.
    You did this assignment all from Texas, or you interacted with
the Finance Administrator and the Associate Pastor (who serves as a
part-time Church Business Admin) by phone/mail/fax and Email (attachments) as you reviewed their Staff/Personnel matters.
    I was at the Ministry Finance Team meeting when we discussed your reports and covered such topics as: 1> Exempt/Non-Exempt staff member issues, 2> their Staff Policy Manual and 3> their written Job Descriptions. It sounds like their documents and administration of these things will be significantly improved.
    I trust other Churches will make use of these Online, or
remote, services that you provide."
 

Drafts and how it might involve Plastic and its use at Ministries  (5)

     These comments are especially applicable to small struggling Churches, Schools and publicly supported Ministries and those of us who struggle with regard to Righteous Personal Finance,  or RPFin,   It applies to all who need to prudently buy now and pay later --- with related bookkeeping.  Christians,  please note the resource on this topic at 0410.
     Everyone is familiar with Plastic, or credit cards provided by Visa, MasterCard, etc; plus applicable Department Store Credit Cards etc. 
     But Drafts might be new to you, as a Draft  is a check written now but cashable at a later date.  To give you a Draft "flavor,"  here is a way the Draft process works if you are a Parent owing money to a Christian School or Day Care Center:  Of course, this method could also be used to fulfill donations, or pledge agreements, to Ministries.

  --  Since you received a financial incentive to do this, you have agreed to provide, at the time of registration, a series of monthly Drafts (or post-dated Checks) for the total amount of the annual Tuition.  If it was $1,800.00, you provided 9 Drafts for $200.00 each, but each has a future date as to when the Tuition is due.  The Draft becomes a Check at that future date and the school processes it and informs you that you have paid $200,00 in this manner on your account.  Click 7006  or more details about this process at a School.
  --  Or the situation is like that shown above, except that the total amount of both Tuition "plus Fees" at month end is unknown.  So you agree to a limit and leave the amount of the 9 Drafts open and the School fills in the month end unpaid amount. Let's suppose that the total amount is $275.00 for the first month and so you pay only $270.00 ... the financial incentive is $5,00 per Draft processed.  The next month the total amount is $290.00, but you have decided that you did not care for this method and your unused Drafts are all returned to you for voiding. You would then timely pay the entire $290.00 in another manner.

    OK, what does this have to do with Plastic?   Well, you now should have a feel for how Drafts work .. namely, that you produce a Draft now and it becomes a Check at it's indicated future date, etc. So,  let me lay some more foundations:

FEATURES AND/OR TRUISMS:

    1> It is prudent stewardship to buy very little using GREEN STUFF.  Why: because it can easily be stolen, plus it is not conducive to good buying record keeping;
    2> Therefore, it is important that your method of buying include a good record of "who, when, why, and the amount;"  
    3>  An example is to buy from a local vendor and charge it, and then monthly pay each of these vendors on time.
    4>  It is better yet, to buy at these local vendors and charge it to one debtor, or Plastic Company, like VISA, etc.  This way your monthly payment is to one debtor (VISA) rather than to each individual vendor, etc.
    5>  Plus it is good stewardship to use the "Buffer or Float factor"; namely, buy something now but timely pay for it later, etc. No way do you pay for Plastic Finance charges.
    6>  It is essential that your system provide ways to control your personal spending or the spending at a Ministry by Staff, or Volunteers, for authorized expenditures. A Ministry does not have the best control when they permit Volunteers or Staff to spend their own money and seek reimbursement. Buyers MUST know their current spending status -- especially in relationship to what has been authorized.
    7>  This purchase is then booked into your accounting system so it can be reported and managed.

Enter Plastic and Drafts --

    OK, how do Drafts and Plastic fit together?  Note the following process....

  A>  Authorized buyers at Ministries make weekly Plastic purchases (Click here for more details) and you make it easy for them to retain Plastic Receipts --- usually very small pieces of paper.  Look into using weekly envelopes that includes both the OK and it has recap capabilities on the face of the envelope, etc.
  B>  Using this system, or you do not have to book these individual Plastic Receipt purchases into the Plastic Payable accounts, 
  C>  You produce a weekly Draft (see above) from this recapped Plastic Receipts info and charge it to the respective expense accounts.  These Drafts can have the current date but you do NOT yet send to the Plastic company..... see F> below for their disposition.
  D>  Since these weekly purchases are now in your accounting system,  you know if you are staying within your buying boundaries (Budget or Envelopes).
  E>  When the Monthly Plastic Statement comes, you subtract the above weekly draft amounts from the total amount due and write a check for the difference and distribute this amount to the applicable Budget or Envelope areas.
  F>  You then send all four checks (previously Drafts, but now they are all Checks) as payment for the total amount due shown by the Plastic monthly statement. The Plastic Company may not like processing all these checks, but they are timely getting what is due to them, etc.         

Potentially Helpful Links for JIMs JRNL Readers  (1):

1> Sample declaration by a Publically	http://www.epm.org/finances.html
supported Ministry about their finances
2> Personal Finance resource	http://www.thebeehive.org/money/
3> More Info about Debit Cards	http://www.thebeehive.org/money/debit-cards.asp
4> Latest re eEnvelopes and	http://www.bcidot.org/env/0400-00.html
Personal Finance
5>  Fund Raising per Crown Ministries	http://www.crown.org/library/articleview.asp?op=1736sjh&id=21

Prayerful Thots:

     Heavenly Father,   I am impressed with a quote I recently read:  namely:  "Doing something to avoid doing the right thing is never the right thing to do."   Lord, help all of us to biblically know what is the "right thing" and then do it for Your honor and glory.   Thank you, Lord.  In Jesus Name --  Amen

 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

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

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