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

 TO:  Interested Onliners or Ministries                                                                                             FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                      FILE:  0201-03/jrnl
   
 RE: J I Ms  J R N L  for the month of January 2003                                                                                       Originated:  January, 2003  

PURPOSE:  To help your  Ministry Finance Team  be more effective:

Church Building and Borrowing Matters :  (9)

    I agree with this quote:  "While the prudent principles of borrowing are sometimes abused, conservative amounts of borrowing for building projects are often necessary to facilitate outreach and growth of the local church."   I trust you find of value the dialog found in  2037  concerning "Resources on  www.bcidot.org  on the overall topics of Building Funds, Pledges and Construction accounting and reporting."   Contact  www.eccu.org  for some borrowing resources.

Church Operating Financials (10)

        In  0045  we make reference to the need for Ministries, especially Churches, to provide Summary Financial Reports.  Please note in the sample located at  0786  how a Church has provided a one Page recap of their entire operations.  The operating segments at this Church are:  General Fund (and "Budget to Actual" info), Special Purpose Funds (or Spoken For Money), and the activity in their Building Fund.  I trust all MFTeams  do something along these lines for people who need to quickly know your financial status.

FLAGs - Red and Yellow (11)

        Some times I participate in Finance,  or  MFTeam  meetings (in person or Online),  and I wonder if I should be able to wave actual red and yellow flags before people at the appropriate time.  But I trust tools like  0039   help you to "wave your own yellow and red"  flags, but more so, to change them to "green"  flags. 

Follow-up Task Management (12)

        This is an example of how I sometimes "stray" from what is totally  MFTeam  matters.  In  0091  I share some thoughts about my personal management of To Do  items.  Also see  0914  regarding some Computer Desktop Management thoughts.  I especially want to emphasize how important it is to write down the item when it comes up.  Which obviously means that you always have something to write on and with. 
        Then in  0906  I voice my experiences in righteously deferring things to do.  Not forgetting them,  but setting them aside until the appropriate time, within the context of what I believe to be important in my life.  All of us cope with these matters ...... I trust you find some of these principles helpful as you are a good steward of your time and resources.

Form 990 - Federal and State (1)

        Non Church Ministries annually prepare Federal form 990 and the applicable state form.  Please go to  0108  for information on this topic.  But the actual preparation of this Information return (notice I did not say "tax" return, but "information" return)  can be done Online without cost. Please go to  http://www.form990.org  for more details of how the 2002 form 990 is to be available and useable in this manner.  This will also give you info about how you can "e-file" for states like Pennsylvania and Colorado using this online resource .

Internal Audits at Churches (4)

         In the following link you will find a 30 plus page Internal Audit paper that covers this topic well.  http://www.gcfa.org/FinalLCAG.pdf  I trust you find this info helpful. 

New Ministry (8)

        Are you poised to start of new Ministry?  I trust that the web site info that follows helps you with regard to legal and accounting matters.  Go to    http://www.ecfa.org/ECFA/ContentEngine.asp?Page=startanew   for what ECFA  has for you along these lines.   We also have this link contents for you:  0049.  If you need incorporation and tax exemption assistance contact attorney David Margon  of El Shaddai Ministries at their  www.elshaddai.com. web site.  David's bio etc is found in:   http://www.elshaddai.com/background_info_on_director.htm

Online Giving and Worship (5)

        I seem to be reading more and more about making donations to Churches via Online Banking and using the Internet and it's tools. An example is found at:  http://www.kentucky.com/mld/heraldleader/living/religion/4669608.htm   Please see use of Credit Cards (Plastic) and Electronic Funds Transfers (EFT) mentioned in  2036.   Here I have tried to address some concerns about using these resources within context of each of us appropriately worshiping at our local Church.  Let me know what you think at   Jim@bcidot.org  .

Record Retention (6)

        We always have before us the questions of what financial records to save and for how long.  In addition to the information in  0082  ,  please go to  http://www.elca.org/os/records.html  where you will find some  "RECORDS MANAGEMENT GUIDELINES" 

Small Ministries - Online Internet Remote eCPA Services (2)

        As I shared last month in my written prayer, I continue to "bang my drums" with respect to the needs of Small Ministries!  ----  who I define as Churches or Publically Supported Ministries that have some $500,000 annual income or less.  A lot of you fall into that category.  In our   xxxx  web site pages identified below,  I maintain that such Ministries need some help that could be readily provided via the Internet.  I believe CPAs ( As indicated within  0047,  Retired CPA-Auditor Jim Bramer is NOT your total CPA answer) should provide a Online Internet remote service (might even be called eCPA Services) something like what is spelled out in  0109  and  5109  .  Ask me for names of Ministry savvy CPAs.   With today's Internet tools, it is not really necessary, in my judgment, for a CPA to hardly ever be at the office of the Small Ministry in order to meet their fundamental needs.  If interested in a partial example, ask me for details via  Jim@bcidot.org  of what we did during January 2003 while I was in California and she was in Georgia.

Small Ministries - ECFA and ASSURORs (7)

        I further believe that Small Publically Ministries (those with some annual income of $500,000 or less) should demonstrate their fiscal accountability, yea, credibility,  by belonging to the ECFA.   Please go to   www.ecfa.eg  for more info about E)vangelical C)ouncil for F)inancial A)ccountability.  All ECFA members MUST, of course, comply with their standards.  This currently  includes a relationship with CPA-Auditors.  Such a relationship is expensive - especially for Small Publically Ministries.  I maintain that ECFA should allow ASSURORs to attest to the fiscal credibility of Small Publically Supported Ministries.  ASSURORs are less expensive qualified CPA-Auditor alternatives as defined within  0192 and referenced in  0922.

Teen Agers and Moola (3)

        OK ---here is another example of a non MFTeam matter.  Bettie and I have 11 Grand-kids and most of them are now teenagers or older.  In  0908   I have gone into some detail about Teen Agers and  Moola.  During these years these kids are laying life long Moola foundations --- one Truism is that they will have to cope with money issues their entire life.  They MUST realize that they are stewards of such resources and that our Lord owns everything.  I am especially impressed with them managing their own Savings and Checking accounts by the time they are Seniors in High School.  And that part of their college education is to pay for all of their personal and school expenses .... even if some of it comes from family sources.  This includes having only one Credit Card that they pay off monthly.  Kids need to grow up and handle Moola righteously.  The content of  4015  might also be of interest to you. 

Web Based Systems (13)

        In  0904  I share about Web Based Systems whereby you do NOT buy software but utilize software systems available directly via the Internet, or the Web.  Note the pluses and minuses mentioned in 0904.  What impresses me about these resources is their application to Small Ministries.  ASP,  or Web Based Systems,  are available for both bookkeeping/accounting and what I can DonaMail (Donation and Mailing list databases) purposes.  See  0801  for what Quickbooks offers.  Some DonaMail providers are listed as "ASP" items in  0078 .  These Web Based Systems have been around for a time but are not really used that much.  Now that more fast Internet connections are being used by Ministries,  they should be more of a resource.  More ASP, or Web Based Systems applications,  info on  www.bcidot.org  is found at:   Churches:  5888   Mission Agencies  8888  and  Christian Schools  7888.

 Frequently Used Vocational Terms:

            ASP = Application Service Providers;  CBA = Church Business Administrator;  CMS = Church Management Software/System;  CPA = Certified Public Accountant;  ECFA = Evangelical Council for Financial Accountability;  GAAP = Generally Accepted Accounting Principles/Practices;  GPFund or GPF = General Purpose Fund; MFTeam or MFT= Ministry Finance Team;  QBooks or QB = Quickbooks; SPFund or SPF = Special Purpose Fund

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This document was last updated on:  November 15, 2010