This process allows me to share some rather personal comments/thoughts (and sometimes written Prayers)  about Ministry Finance issues 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 .  See list of Frequently Used Vocational Terms at the bottom of this document.  If you would like to receive the next current  JIM's JRNL  during the first week of the next 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  Web Docs, or writings, can be found at 9712.   

 

Committee Meetings - especially your "Ministry Finance Team" meetings (3)                          

   Committee meetings do not have a good reputation -- especially in a volunteer setting.  Please make every effort to see that your Finance Team meetings are productive.

BEFORE MEETING

        Schedule such meetings during a specific day of the 2nd week of a month. This allows time for month end completion; especially bank reconciliation. The leader should determine agenda - after reviewing the minutes of the previous meeting -- and distribute during the first week of the month. Be sure and leave time for thinking of the financial future; DO NOT spend all of your meeting time analyzing the past or present situation.
        Members should come informed and prepared; so "likely asked questions" can be answered. Explanations of unusual fiscal activity will be needed. During the month, each member captures issues so your Leader can include it in the agenda. Be sure and include issues around Financial Policies  ( Please go to  5005  for info about an initial Financial Policy effort); new ones may be needed or old ones may need updated. As much as  practical, be provided with the following types of historical financial information:  Cash/bank balances and who belongs thereto (Fund Balances); applicable aged listing of both money owed you and money you owe; and departmental operational/activity budgets, or budget equivalent data -- plus major budget deviation explanations.
        Since it is "far" easier to articulate a proposed action before the meeting itself, members could come to the meeting with a proposed action in writing, subject to reading aloud, re-writing and ultimate finalization during the meeting.
        Concentrate on declared Most Important Financial Issues - MIFIs.  Please Click here and read about this topic.

DURING MEETING

            It is essential that each committee member:

• Thoroughly understand the issues to be resolved;
• Has reliable financial facts, or information;
• Understands the financial data presented to them;
• Fully express their views; 

    Please resolve unclear financial policy applications. Sometimes staffers are unclear just how to handle a situation within existing financial polices and after discussion such issues can unproductively be left "dangling," every agenda item is clearly either:     

• Acted upon -- the issue has been resolved and assigned to someone for communication or consummation
• Abandoned --- one reason is that it might be a non-issue
• Deferred --  an issue resolution is delayed -- not abandoned -- for reasons that include not having enough information for good decision-making

     Issue resolution actions are captured in writing and repeated aloud during the meeting for clarity and finalization. Part of complete issue resolution might require final authorization by the Ministry's governing body. The meeting needs to have structure and the Chair person moves things right along !!!!!  An ideal Finance or Ministry Finance Team time allocation is as follows:

A: VISION = Anticipate future needs; look ahead;						10%
visualize something big for the Lord; share ideas
B: PLANNING/GOAL EVALUATION = Recognize/						25%
define needs; establish goals; know when goals
are reached.
C: ORGANIZATIONAL MAINTENANCE = Routine						40%
matters; minor problem-solving and decision-making;
reports from staff; information-gathering and sharing
D: POLICY MAKING = Determining policy needs;						10%
developing criteria and setting forth policies;
insuring that policies are current/viable.
E: SOCIAL = necessary for board members to						10%
understand and minister to one another in
a controlled setting.
F: FIRE FIGHTING = Crisis decision-making;						5%
urgent problem-solving; resolve stressful
issues often with limited facts or resources.						0
	Total %					100%

AFTER MEETING

        The committee member who recorded these actions taken finishes the job right away while the meeting content is fresh in mind. This person (Secretary) records issue resolutions, indicates member assignments and then distributes to all members ASAP.   

IRS and Tax Deductible contributions info (1)

          Please  Click here  for coverage of IRS and Tax Deductible contribution matters - it pertains to only those tax payers who itemize their deductions, or some 1/3 of tax payers.

Internal Auditor and External Auditor Issues (2)                        

I trust you find helpful the Onliner Dialog below about Internal and External Auditors.

     Onliner One:

        The MFTeam needs finance credibility for it's Board, Constituents and applicable Banks, or creditors. This comes about by an independent, or outside, CPA-Auditor (EXTERNAL AUDITOR) performing the appropriate financial examination (Click here for details) and then providing your financial statements over their letterhead, along with their attestation of an agreed type of opinion. This 'audit' must conform to accounting industry 'according to hoyle', or GAAP,  Auditing Standards.
        The MFTeam can be made even more financial accountable when an INTERNAL AUDITOR functions as a buffer between the MFTeam and the EXTERNAL AUDITOR.  Another view is that the EXTERNAL AUDITOR is an outsider looking in and the INTERNAL AUDITOR is an insider looking out. The INTERNAL AUDITOR complements the EXTERNAL AUDITOR, but focuses in on the unique and expanded needs of that personalized MFTeam; the INTERNAL AUDITOR can be 'on the team'  while the EXTERNAL AUDITOR must be independent with no possible conflict of interest.  Ideally, the  MFTeam  itself is the boss of the  INTERNAL AUDITOR  and not one of the Ministry executives.
        By the way, you might find of value the info about an Internal Audit Committee when you click here .  Also with respect to an ASSUROR effort when you click here.

      Onliner Two:

            Good ... that helps; please be more precise as to what tasks are done by at least the INTERNAL AUDITOR.

Onliner One:
        OK -- see below:

- - - DURING THE YEAR - - -

•   Provide financial stewardship governance assistance to the MFTeam in its pursuit of righteous Ministry Finance management. In general, contribute to MFTeam meeting agendas during the year and attend many (even if by the agenized conference phone call method) of these meetings.
•   Help the MFTeam declare its "Most Important Finance Issues" and assist in their resolution. Go to  0122  for more specifics.
•   Help in identifying needed Board authorized Financial Policies and monitor Ministry compliance. Please go to  5005 for more details with regard to a Church.
•   Give assistance to the MFTeam in having the proper accounting infrastructure (Chart of Accounts, etc.) and help them make use (including certain training) of the appropriate Finance Computer system.  Maximize the potential of sending and receiving secure financial information via Computer Online Services. 
•   Help to make sure that the staff and the MFTeam has efficient, relevant and timely financial decision making information.
•   Be assured that the methods and procedures in/around financial transactions are subject to the appropriate controls. To include unannounced physical examinations and the use of employee checks and balances ...  or what one employee does is a check and balance on what is done by an unrelated employee. Also that subsidiary accounting records agree with associated control accounts.  Please  Click here  for information about Church Counting;  plus go to    0039  for more info on the topic of internal controls.
•   Take part in making sure that the Ministry is complying with the current applicable governmental financial rules and regulations.
•   Help to insure that the Ministry is managing its liquid assets, and/or deposits, so that it maximizes any possible interest income there from. Go to  0006 for some specifics.

- - - IN/AROUND THE FISCAL YEAR END - - -

•   Assist in providing documentation needed by the EXTERNAL AUDITOR. Assist in the year end journal entries, to support any of the items below.
•   Double check the MFTeam provided Year end Bank statements and reconciled balances; old outstanding checks; plus verification of other liquid assets. Be satisfied about the validity of the Accounts Receivables and Allowance for Bad Debts. Be sure of Inventories; including reasonable assurance as to Merchandise markups.    Do applicable verification of Payables and Liabilities; including their short and long term status.
•   As applicable , produce EXTERNAL AUDITOR formatted year end financial statements in conformity with industry G)eneral A)ccepted A)ccounting P)rinciples - GAAP. The goal is to have the internal year end financial statements, and footnotes, to be just like the EXTERNAL AUDITOR financial exhibits flowing over their letterhead and subject to their attestation.
•   Help to insure complete closing of the books with proper new year balance forwards.

     COMMENT: The mentality of an INTERNAL AUDITOR is one who looks over your shoulder and provides desirable direction, but does NOT execute financial transactions. 

Onliner Two:

        Thank you --- It certainly is obvious that a INTERNAL AUDITOR is more involved as part of the "team" during the year when the MFTeam often needs help?

Pray each week day for your Ministry Finance Team (4)

        You, of course, need to pray each day for your overall Ministry.  But the emphasis here is to pray for the Ministry Finance Team  (MFTeam) as this group of people carry out their fiscal responsibilities.  You might print this out, personalize for your own Ministry, and then provide copies for your next MFTeam meeting as you daily pray using the suggestions below.

Sun  - - - -   Each member and their relationship with our Lord and Savior Jesus Christ

• For a close, daily walk with Him

• That each member will be consistently nourished through God's Word

• For victory over worldly temptations and sin.

Mon  - - - -     General Ministry Finances, etc

• For a healthy Budget System .. dollar expression of known God inspired Ministry goals and objectives.

• For the right amount of Income ... use of the appropriate Fund Raising methods

• That staff will have their needed Salaries/Benefits

• That people who are Ministry Buyers will understand and comply with their buying limits

• For sufficient Internal Financial Controls so that there is no stealing or embezzlement

Tue   -  - - -  MFTeam  Committee matters

• That all members understand their individual roles

• That they identify and appropriately deal with MIFIs (Most Important Financial Issues)

 Wed   - - - -  Family of each MFTeam member

• For a strong marriage or single relationship

• For good relationship with biological and extended families.

Thu  - - - -     Physical and emotional needs of each MFTeam member

• That "work" is placed in the right perspective

• For good physical, mental and spiritual health

• For the Lord's comfort through times of stress

Fri    - - - -     Communication regarding Finances

• For healthy verbal/written communication of financial facts

• That constituency will have and understand such information

• That each MFTeam member will share their views so all can understand

Sat    - - - -    Board and Finance matters

• For a healthy relationship with their MFTeam

• For an effective Volunteer Board Treasurer 

• That each Board member knows the essential financial facts

• For appropriate use and safety of any Ministry facility

 Possible "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

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

This document was updated last on:  June 19, 2008