This process allows me to share some rather personal comments/thoughts (and sometimes written Prayers)  about Ministry Finance issues during this month of  March 2003.  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 .  See list of Frequently Used Vocational Terms at the bottom of this document.  If you would like to receive the current  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 in these JIMs JRNLs; do NOT imply my endorsement per se.  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  links (Web Docs) can be found at 9712. 

Church Fiscal Year Ends (3)

               There was a "when does your Church Fiscal Year End'  poll recently out on   http://groups.yahoo.com/group/churchadmin/. The 49 responders indicated the following:

                                Jan, Feb or Mar                        3
                                Apr, May or June                     12
                                Jul, Aug or Sep                         6
                                Oct or Nov                                1
                                December                               27

            Over half now have a December 31st fiscal year end.  This is interesting in context of our   0041  recommendations to NOT have Church December 31st fiscal year ends for the reasons given.

CMS-Church Management System (5)

            When you link to  0209  and  0212,  you will be provided with details of an ultimately successful CMS (Church Management System that normally covers people database and donations accounting) project that I was involved in beginning in September 2002.  The major negative has been that the multi-year pledge record keeping is not what we had hoped.  Let me know at JimRetCPA@bcidot.org if you are interested in more specifics as to vendor and related "how to", etc.

School Accounts Receivable -  SCHAR or eSCHAR (6)

            Let me know at JimRetCPA@bcidot.org  if the following possible scenario at Christian Schools (Elementary through Seminary)  "rings a bell" with you.  The idea is to structure the School's Accounts Receivable (SCHAR) system so that authorized Associates One thru Four below have Internet access to what they need.  See the Associate's Who/What/Why info below.

                       Associate One    
      The School itself -- keep an accurate/complete "eSCHAR System" as a subsidiary that complements their normal G/Ledger and reporting system, The School would have a backup like copy of the "eSCHAR System" that would be regularly updated in case of Internet oddities or failure, etc.

                        Associate Two
        An organization like  ECCU  who helps to see that the Payor makes agreed payments of Tuition and Fees.  Go to  7013  for a list of such entities.

                         Associate Three
        Payor (Individual paying the bill like Parent or "beyond high school"  Student) to view Online only their own SCHAR so that they have complete balance due and individual transaction information.

                          Associate Four
        Others such as Auditor or CPA, as needed so such things as sending out SCHAR confirmations by Email.  An example of someone else might be Parents/Supporters of a College/Seminary student.

              Please go to 7888 for more details concerning a possible "eSCHAR System" and go to   0035   about related matters.

              Please Click Here and go to web pages within www.bcidot.org  having to do with SCHAR.
 

            Finance Accounting System Essentials  (2)

    We need to emphasize the basics ..... if you have Ministry Finance responsibilities, ask yourself the following questions about your Finance Accounting System Essentials:

•   Does it provide timely financial information so prudent decisions can be made?
•   Does it give readers adequate and timely '"where are we" information?
•   Does it show trends or provide a means for comparison of where we are in relation to where we should be?
•   Can it be managed by the applicable staffer?
•   Does it provide a means of financial internal control over recorded assets?
•   Does it enhance accountability of all financial resources and obligations?
•   Does it satisfy necessary record keeping for taxing authorities and internal and external auditing?
•   Does it show where resources come from and where they go for a "Period of Time?" 
•   Especially in relationship to what was authorized (such as our Budget)?
•   Does it adequately reflect the status of what we own and what we owe at a certain "Point in Time?"
•   Does it clearly show the status of both Restricted and Unrestricted Fund Balances at a certain "Point in Time?"
•   Does it bespeak a financial message; does it articulate relevant Ministry Finance info to those who should know?

   You should make the necessary corrections if any of the foregoing is answered in the negative.

Loan Provider Helps (1).

        Most Loan Providers ask a Church/Ministry to understandably resurrect quite of bit of credible financial info of recent years before they will provide any type of prudent Facility loan.  This includes info about non-cash assets like Land, Bldg and Equipment plus related liabilities.   Many of them want their latest annual financial reports to be audited by a CPA firm (see  0003  below for more Audit info)

        Let me know at  JimRetCPA@bcidot.org  if you think there is a need for us to be involved in something like the following:

>> Assist a Church/Ministry provide your Loan Provider  with needed financial info.
>> Our help would have an Online emphasis; there would be limited, if any, "on-site" visits, etc -  virtually pro bono; or no charge .... see  0100
>> Not as a CPA providing attest services as defined within   0003
>> But via a remote retired CPA-Auditor with my perspective or background --- see  0001
>> Data would be comparative annual Ministry financial facts with unaudited   GAAP  in mind.

Prerequisites for both Church/Ministry and Loan Provider would include:

>> They would communicate to me mostly via emails and attachments with minimum phone calls
>> They would originate any pre-scheduled phone calls to me.
>> They would have the applicable Hardware/Software plus someone to insure that it meets our needs, etc.
>> Financial data would flow back and forth mostly via attached Excel and/or Word docs
>> All would maximize common use of Jim's desktop as a tool per explanation found within  0130
 

Whole Dollar Accounting (4)

     Recently I learned that someone kept their books in whole dollars only for the entire seven years--- round up to the next dollar if 50 cents or more and disregard the pennies if 49 cents or less.  Someone was not happy with that process,  so they re-processed all of the transactions for the entire seven years and the net difference was less than 20 cents
     Non Profit/Ministry accounting tends to be quite involved, if not complex.  See  0041  for some details.  Therefore, should we advocate Whole Dollar Accounting - especially for smaller Ministries?

 

- Monthly Prayer -

   Dear Lord ....  The apostle Paul was a very very special servant of Yours.  I am thankful for his contribution to the Cause of Christ.  But, in recently reading the Daily Email Bible verses, I am also VERY thankful for people in Paul's life that were not high profile like him.  In Acts Chapter 9, the disciple named Ananias in Damascus was willing to minister to Saul/Paul when he was the enemy;  Barnabus no doubt had the spiritual gifts of administration -  timely getting the right thing done.  My prayer this month is that readers of this JRNL will be faithful in following Your directions in their low profile jobs for You, oh Lord, as we are stewards of our spiritual gifts and responsibilities.   Again,  thank you for the Lord Jesus Christ who must be our focal point in life.  In His Name I pray.  Amen.

 

 Frequently Used Vocational Terms:

            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;  QBooks or QB = Quickbooks; SPFund or SPF = Special Purpose Fund

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

This document was last updated on:  May 01, 2008