This process allows me to share some rather personal comments/thoughts/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 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.  Our more recent www.bcidot.org  Web Docs, or writings, can be found at 9712. and 9716.  

Calendar Year End Giving (7)

    What follows are some links that have to do with financial  Donations/Contributions  to Ministries - especially at Calendar Year End.

>>  Helps in making a Donation/Contribution of Publically Held Stock, etc:   http://www.assetstream.com/
>>  Tips for making a Year End Contribution:    http://nonprofit.about.com/library/weekly/aa052404.htm
>>  Gift Annuities and other Planned Giving methods:      http://aboutplannedgiving.com/

IRS Mileage rate for 2005 (5)

      Please go to this link http://www.irs.gov/newsroom/article/0,,id=131232,00.html where you will find that the IRS mileage rate for year 2005 is 40.5 per mile.  The 3-cent increase in is the largest one-year rise ever.  Please go to  0016  for more info about Ministry Vehicles costs, etc.

Fellow CPA who becomes a Ministry CFO (2)

     When you read  0014  you will find some information I have shared earlier with CPA Marty who left Public Accounting and became the CFO (Chief Financial Officer) of a Ministry. See some additional thoughts below.

•   You no longer zero in on being a Public Accountant Tax Preparer or Auditor, etc., as you posture yourself to be a leader in all areas of Ministry Finance -
•   You prepare yourself to anticipate future financial needs; carefully monitor Financial trends of your Ministry.
•   You are the principal Transaction Authorizer --- not simply a Transaction Processor
•   You must look at the big financial picture --  not just the resultant debits and credits
•   You instigate Financial Policies & Procedures and be their policeman.
•   You are poised to decide and concentrate on "Most  Important Financial  Issues - MIFIs"

Ministry CFO and Board Treasurer (4)

    The Ministry volunteer Board Treasurer and the staff Chief (Corporate) 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.  I have found that this is NOT always the case in working with Ministries as a CPA-Auditor Consultant for over four decades.
    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 - some even go by the title Staff Treasurer.   Titles are not always that critical,  BUT what is critical is that responsibilities are written down, understood, and appropriately assumed.  Hopefully the following will assist the two of you along these lines.

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

    The following "Please Do" and "Please Do Not" items might also provide assistance to these two officials.

		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 Ministry.
	yields for deposits.
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

                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.

Keeping Current with Ministry Staff and Financial Policies & Procedures: (3)

     Having up-to-date Staff and Financial Policy manuals are quite important for a Ministry --- as you know things change and such things need to be documented.  One way of doing this is to have them in a format like that is found in the Church Sample Financial Policy manual found at  5005  and you re-affirm a section of such a document at virtually every Committee meeting.  Or you would read out loud the written section and you would ask if it is currently relevant, or if the Ministry is complying with the policy,  and proceed accordingly.  It usually takes very little time and attention of the Committee as you keep things current and, of course, it reminds the group about the whole issue, etc.

Potentially Helpful Links for JIMs JRNL Readers  (1):

     Below are some discovered Ministry Finance concerns plus some forthright Scriptural enablements that we have 'gleaned' down through years..... we trust you can relate as you click/link to the actual text of the verse.

• Finding money to pay bills is exhausting ---- Isaiah 40:29
• Funding of that project really worries me --- Phil. 4:6
• This particular financial system is frustrating -- Eph. 2:10
• That computer matter is beyond me - I need help!! -- Psalm 37:30
• You mean the IRS requires us to do that --- Romans 13:1
• I know, I know - that donor was not fair, but: --- Psalm 37:28
• Praise the Lord-we were able to meet payroll!!! --- Psalm 96:3
• The General Fund income is more than expected --- Psalm 108:5
• That department stayed within the budget and deserved praise; Prov. 16:24
• No - We really must pay that bill-even if it is grossly unfair---- II Tim. 2:19
• How frustrating; no one will take responsibility for that obvious over-spending - Isaiah 26:3
• Yes, I had my reasons for forgiving that debt - Isaiah 55:9
• I'm proud of that Ministry Building - I Cor. 13:4-5
• We gave to that needy person confidentially - Matt. 6:3
• Staying within our income was (and is) hard work - I Cor. 10:31
• Double signatures are required on our checks - Prov. 18:17

Financial Creditability for Smaller Publicly Supported Ministries via a ECFA ASSUROR Relationship (6):

    As you know, my heart is with the smaller non-church Publically Supported Christian Ministry who has $500,000 or less annual income and must be financially creditable to the Christian public. This is usually done by an annual financial audit and related attestation of said finances by an outside CPA firm who provides services as outlined within 0003 .  Further, it is wise, in my opinion, for this Ministry to be a member of the ECFA (Evangelical Council for Financial Accountability) as it declares to the Christian Public that their members are appropriate stewards of money handled according to their standards, etc.  Please  Click here  and go to  ECFA's web site for more specifics. 
    Most of these Ministries really need such CPA-Audit services but feel they can NOT afford the some $100 or more hourly fees charged by most CPA-Audit firms. Surely more Ministries would become ECFA members if there were some viable cost-effective alternatives for meeting ECFA's standards.  Surely the ECFA's standards for such candidates can be met via something like the following: 

   >>  ECFA Certified ASSUROR Professionals  who must pass muster with ECFA.  Note that I have changed the title to "ASSUROR" from "AUDITOR" to distinguish from the usual Auditor-CPA.  Such proposed ASSUROR professionals would be:  1-CPAs who serve the public, but, their emphasis is non Audit assignments as they have chosen to not do CPA-Audits or Reviews as such, since they do not want to go through the necessary "Peer Review" and related involved requirements.  2-CPAs, presently working for one employer and they also are not currently qualified to do CPA-Audits or Reviews; 3-Non CPA Public Accountants; Enrolled Agents; or qualified Retired Accountant who have met the  "to be defined"  ECFA  ASSUROR requirements.   
   >> Emphasize the IRS Form 990 Report  --  There would be no "Annual CPA-Auditor report" per se, or the content of the annual IRS Form 990 would provide the necessary financial report information to constituents that would include: Balance Sheet/Income Statement//Functional Expense Statement. etc (I know there are GAAP 'fancy' names for all of these now).  The annual form 990 would be signed by the ASSUROR and be prepared in compliance with GAAP - see  0004  for more info. The annual form 990 would be available online at  Guidestar   or to anyone via mail from this ECFA Member.  The ECFA Member's constituency would be annually informed (via Email and applicable links, etc) that they are an  ECFA member and where to find the latest annual financial report via the form 990 etc.
  >>  ASSUROR's  Compliance .  ECFA would compile a concise "ECFA Certified ASSUROR completed list"  that could cover such topics as:   1-Financial policies and procedures; 2-Internal Financial controls; 3-Internal Audit issues; and applicable 4-ECFA standard specifics. . The objective is for ECFA to be completely satisfied that this Professional has met their standards as the ASSUROR goes to a pass-word protected area of the ECFA web site and completes this list Online by answering yes or no, etc. 

                                                                        - During the Year

    This type of ECFA relationship could more likely contribute to the ASSURORs  having a needed quality "hands-on" outside relationship with the ECFA Member during the year.  This could be  'across the street' or  'across the Internet'  as detailed within  0109.   Of course, such a relationship would help meet both the Member's practical needs throughout the fiscal year as well as meet the annual  ECFA Certified ASSUROR Professionals responsibilities as outlined above. 

Prayerful Thots:

     Dear Heavenly Father,   Help each of us to "ask good questions so we can get meaningful answers and learn", also please help those "who have the most important things to say to use the fewest necessary words."  Help us to be wise in our daily verbal human relations for your glory.  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