- - And the Lord direct your heart in the love of God as you continue to faithfully serve Him - -

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         TO:  Interested Onliners                                                                                                                 FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                                        
   
         RE: J I Ms  J R N L for the month of December 2005                                                                        FILE:  0212-05/jrnl        
                (Click Here for "Blogger like" perspective/rationale)      

Computers - Quote from a Non-Accountant Business Man. (10)

    I have been tremendously impressed with accounting software at our business since it enhances the processing and balancing of financial transactions. Or you enter the dollar transaction once, verify it and then let the system replicate that dollar information to wherever it is needed to accomplish our financial reporting structure and objectives. I have seen that most computer systems give the appearance of typing info into a uniform blank form, etc. They usually maximize the use of, not only dollars, but graphics like when you type out a check, etc. Of course, you have at your disposal integrated databases of needed information that facilitates transaction processing and reporting. They are a real blessing, in my mind.
    As a new Church Treasurer, I can see how we need to maximize their use at our Church.
    I greatly appreciate you providing the  0601  web page with regard to the familiar accounting software product known as QuickBooks and its use at Churches and other Ministries.

BuxBox -- Spending control alternative to the usual Budget system (9)
 

                 First, please link to  1211  for information about AFT (After the Fact) QBuxBox Weekly Internet Accounting System

       For the Smaller Churches:   Let's suppose that the  GPFund  has been struggling, so you decide to use the BuxBox QBooks Accounting system explained in detail at  0002  since it helps you better control your spending than the usual budget line item accounting system.  It includes at least the following as you:

• Establish GPFund  Department spending groups - we call them GPFund BuxBoxes.
• Determine which of the BuxBoxes has first priority to the weekly GPFund Sunday Tithes/Offerings Income
• Place this Income upon receipt by order of priority to the applicable BuxBoxes..
• Provide weekly BuxBox reports so Church buyers know if there is anything to spend in said BuxBox.  See sample at   0601 plus detail reports below.
• Use the QuickBooks "Class" accounting feature to provide needed types of GPFund Income and Expenditures.

         For a Christian Family Unit or BLVR:   The BUXBOX method conceptually parallel's the Envelope method that most of us know about; whereby in your pursuit of  Righteous Personal Finance  your money upon receipt is divided up and placed in various pre-planned "type of spending" Envelopes, or BUXBOXES.  This "alternative budget" approach is that you can buy if there is money in a certain spending BUXBOX;  no BUXBOX balance no buy. 
          In this method, all money received by the BLVR flows into the checking account.  Net Pay;  for example, is deposited into the checking account preferably by direct deposit, as arranged with BLVR's employer.  All such receipts are ultimately assigned to one of at least three BUXBOXES - see below.  Do NOT make the BUXBOX  process too elaborate or complicated ... as we accountants have a tendency to do.  Only use more than the three BUXBOXES if/when more control of a specific spending area is needed.   Use the "big picture" approach first and, if needed,  get more detailed later.  COMMENT: At this moment, accounting for tax deductible matters at calendar year end is a non issue - such info can readily be located and extracted;  the important things is to get the BLVR's spending control in order, etc.  Please consider the following:
 

       BLVR 1st BuxBox - Priority
       Priority Commitments  

•  Donations to Church - Tithes and Pledges
•  SetASide for periodic/annual payments like certain taxes or insurance; or for future personal projects like vacation or Christmas.
•  Pay off old debt or make Over and Above required current Debt payments below -- Plse access  0721  and notice how the Unpaid old debts could also be monitored.

BLVR 2nd Bux Box - LIFE STYLE Personification -
Not much choice - BLVR is prayerfully committed to this Life Style.

•   Required Debt Servicing Costs; Mortgage payments
•   Home insurance and real estate taxes: (Ideally your Mortgage company collects monthly and acts as your agent in timely payment thereof).
•   Household Utilities and maintenance
•   Car payments; operating expenses and insurance
•   Communications costs ...Phone/TV Cable, etc.
•   Agreed amount for purchases at Grocery Stores, Department Stores and Drug Stores.
•   Medical and Life Insurance payments

BLVR 3rd BuxBox - Discretionary -

• Not committed - discretionary - family fun times etc; if there is a balance then you pretty much decide as you go along

Bradley D. Pendable and his Resources: (4)

    Please note what has been shared via the Church who has supposedly retained CPA Bradley D. Pendable: 

    "Bethany Church is in a  part of the United States where a number of Evangelical Ministries are located and they need help from someone who is familiar with the nuances of Non Profit,  or Ministry, finances or accounting.   So, as a specialized missionary under Bethany's direction,  and fully financially supported by this church, we have retained supposed CPA Brad Pendable to, not only serve on our staff as our Financial Vice President, but to also be available to assist interested Evangelical Churches and/or Missionary Organizations."  

    Please learn more about Brad by reading the named link contents within these folders:  www.bcidot.org/brad/beth  You will note that this effort is a "Work in Progress" and he yet has information to share about such things as "K thru 12"  schools, etc.  Please also  Click Here  and learn of his generic thoughts about simply managing paperwork, etc.  You might also be interested when you  Click Here  as to his Email and Computer DeskTop management thinking, etc.

Management Polls via Email: (7)

      Please read the content of one of my recent Editorials found at  0931  on the subject of Management Polls via E-Mail.  I am impressed with the prospect of enhancing a Ministry Board/Committee decision making process via such a method.  Communication among Ministry's leaders is essential and written (non-verbal) methods has merit. At one Church that I deal with, for example, all of a certain Board/Committee members have E-Mail and we find it to be extremely helpful .... especially since one of the important members is virtually deaf. 
      In my view, the merits of using E-Mail includes at least the following:

    A>    In most Ministries, especially Churches, off-campus volunteers are essential to the work of the Ministry.
    B>    Since the communication is in writing, the parties involved can more carefully think through the topic in advance and can word things more carefully than what we might do when we simply speak out.
    C>    You are writing and responding without interrupting someone in their daily tasks;  you can write and the other person can respond within their time-frame or schedule.
    D>    Unlike snail, or ordinary mail, you seldom need a printed out (hard) copy and the written communication can be distributed and received usually within the hour.
    E>    You can readily involve more than one person in this written communication process; or you can selectively send a copy to some and not to others, etc.
    F>    There are "thread" aspects, or all written info on the discussed topic can be included within a piece of E-Mail .... plus
    G>     You can attach other material --- or link to relevant stuff out on the Internet.

Replicating Ministries (5)

      "Replicating Ministries" are defined as those whose primary purpose is to serve other Ministries and most of their revenue comes from the Ministries they serve --- not the Christian public per se.  Examples include:

• Church and Associational Headquarters
• Evangelical or Inter-denominational Foreign Mission Assns (EFMA or IFMA);
• Christian Management Assn (CMA);
• Association of Christian Schools, International (ACSI);
• Evangelical Counsel for Financial Accountability (ECFA).
• Camps - especially denominational.

        We recommend that Foundations appropriately make grants to such types of "Replicating Ministries."  This way their money is "multiplied" to more than a single Ministry ;  not to just the support of a Ministry Staff Member or to a single Ministry's General/Operating Fund per se.
        My personal persuasion   0913   is that on-going operational expenses of a Church, for example, should be funded by its current constituency or supporters -- not by former members upon their death (Estate Income) nor by Grants from Endowments or Foundations. Many "Replicating Ministries" are postured for projects, but their constituent Ministries can not help them financially that often -- which, again, points us in the direction of appropriate income from Wills-Estates, Endowments and/or Foundations.
        Another type of "Replicating Ministry" is one where your bank balances (especially long term investment capital) is turned around and re-invested in applicable Ministry investments.  Examples are  Credit Unions,  like ECCU and especially such groups who gather funds and turn around and invest it into Ministry facilities, or capital assets.  Click Here  for specifics of that type.

eExchequer Ministry -- as proposed: (6)

          OK OK  Jim Bramer has another vocational  "Bee in my Bonnet"...... as articulated within my recent Editorial found at  0930  on the subject of a proposed  eExchequer Ministry.   Here you will find a "prayed for" proposal that such a Ministry would be a function of a reputable Ministry Finance entity where Smaller Ministries would benefit from the effective use of Online Applications as provided primarily by the Ministry's trained and credentialed Volunteers.

Bank Accounts and the Sweep arrangement  (8)

    Some Financial Institutions provide Ministries with a "Sweep" service based on a Ministry having three accounts with them; 

                        1 -- Checking Account, 
                        2 -- Some type of Daily Interest Bearing Savings (DIBS) Bank Account and a
                        3 -- Line of Credit (LOC). 

    On a daily basis, the Bank "sweeps" the Checking Account so that it is ALWAYS ZERO. Money is automatically moved to/from the DIBS account --- if nothing is in the DIBS account, then needed money comes from the LOC, but a Ministry pays the least amount of interest expense on their LOC.  See 0006 for more details of how you can obtain more Interest Income. Of course, agreed fees are charged for such Bank services.
    Please note the  TRUISM  below for this month.

Disbursement  method stats (3)

    The following "Disbursement Method Stats"  is from a Church handling more than a million dollars a year and should be of interest to you.  Please especially note that more that 20% of the disbursements are efficiently done via non-checks.  I am hoping that more and more Ministries will prudently not only use Online Payments ..... but especially utilize the process of depositing net pay directly to Employee's bank account.

		(1)	Percent
	Tranx Description	Nbr	of Total
Checks:
	Checks $1,000 or more	21	11%
	Checks $100 to $999	80	43%
	Checks Less than $100	66	35%
	Sub-totals	167	89%
Non-Checks
	Online payments for Scrip	6	3%
	Direct deposit Payroll	5	3%
	Other Online Payments	10	5%
	Sub-totals	21	11%
	Totals	188	100%

                                 Please also note below "signature" info from another like sized Ministry.

	Check volume and analysis
								Jan thru
. . . . Checks . . . .	January	%	February	%	March	%		March	%
Online Payments	31	21%	18	16%	25	17%		74	18%
(1)Signature	117	79%	98	84%	122	83%		337	82%
Total	148		116		147			411
(1)$1,000 and over require 2 sigs	13	9%	17	15%	12	8%		42	10%

 Click below for Potentially Helpful Online Links for JIMs JRNL Readers: (1)      

Current "Ministry Finance" Truism (2)

   Checking Account - Float Management.  It is poor stewardship to leave too much money in bank accounts that do not substantially reduce bank charges or earn interest income.  Or this is another reason that Churches, in particular, should NOT have multiple checking accounts - see  5005..  Please go to   0006   for more information on Sweep accounts and related topics/matters, etc. Please also go to  0069  for other Ministry Finance Truisms.