QB Mission Trips acctg dialog 0660-07 AAqbb

 

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                   TO:      Interested Churches                                                                                     FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                            FILE:  0660-07/qbb

                    RE:    Church Mission Trips etc per "IRREG" set of QuickBooks (QBs)       Originated:    August 2007                                             


          Below is a hypothetical Online Email thread (THRD) between  Jim@bcidot.org  and one of these Ministry MFTeam members: PAT (Ministry Executive), LEE (Ministry Volunteer Treasurer), and FRAN (Ministry Computer Bookkeeper).   


From: Lee:

    Below is a little more about us,  Jim:

     >>  I am the Treasurer of the Church where we use QBPro's  (QBs) regular Income and Expenses accounts for our General Purpose Funds (0042) plus we use QBs Equity Accounts to handle our Special Purpose Funds - that you define when I go to  (0041).  Or this is Method One as defined within (0601).
     >>  We  handle some  $750,000 per annum.
     >>   For the reasons expressed in your (0021)  publication, we do NOT use QBs to do our normal
DonaMail or donation record keeping and people management/communication.

     My reason for contacting you is to pursue how we can efficiently use QBs to accomplish at least the following:

       >>  We have a number of Church Events and Mission Trips (both Youth and Adult, etc.) and we need to appropriately account for monies related to such endeavors. 
       >>  We restrict our
DonaMail system to Donation accounting for just our regular Church constituency
       >>  Some of these endeavors are funded externally by people (like family and friends that are not Church congregants, etc.) whom we do NOT want to include within our
DonaMail system --- or we do NOT want to "muddy the waters" within our DonaMail Church people system.
       >>   Finally we desire to have the necessary Financial Internal Controls (see your  0039  re this)  in handling all of these monies.

From:  Jim@bcidot.org   

    This is great, Lee - thanx for contacting me.  Please consider doing the following:

>>  Set up a separate  (Click Here for perspective)  QBs file (see  5025  for "Expected Receipts" perspective) which I reference as the "IRREG"  QBs set of books.
>>  Some Churches will need to know "Expected Receipt (legally these are not Account Receivable per se) in order for you to keep a record of agreed money not yet received from Participants of the following endeavors, you establish therein a QBs "Account Receivable"  section as: 

        a>  You need to charge the Participant and know who have and who have not yet paid for such Church Activities as the following:  Vacation Bible School;  AWANA and Youth Camp #1    (the Church must collect all of the money and then pass the total along to the applicable Christian Camp, etc.)
        b>  You need to know if all funds needed have been raised and accordingly issue tax deductible donation receipts for what has come into the Church for the applicable endeavor and
        c>  Yet you do NOT  "muddy"  up your
DonaMail system as mentioned above.  Example:  Missions trip endeavors could be for:   "Mexico Trip #1"  and "Russian Trip #1."

From: Lee

    I have read your  2050  publication about "Contemporaneous Receipts" where you recommend that Churches do NOT issue a tax deductible receipt for each and every donation to the Church during the year --- or the Church rightfully renders a calendar year list of donations before the following January 15.   Plus, of course, there is the need to have appropriate reference to the fact that the Donor did not pay for goods or services rendered, etc.
    How does this fit into handling donations received for Mission Trips?

From:  Jim@bcidot.org   

        The "IRREG" QBs system provides two types of a contribution receipts (see samples below).  One is the only tax deductible donation record maintained by the Church that flows to those who are NOT within the Church's DonaMail system.  Then a second type of receipt could go to those within the DonaMail system.  At the completion of the endeavor, then such donation info is included as part of the annual total via the Church's DonaMail system.  This way,  all of any type of donations by the Church congregants to the Church during the year end up in one place within the DonaMail annual giving statement purposes,
        Many times the "Activity Participant," or the person who benefits from this donation, uses the the following "Donation/Contribution Receipts" to communicate their thanks for the gift etc. 

From: Lee

    We have been keeping manual records of all of this via mostly Excel spreadsheets for Mission Trips, Church Camps and Church Events.   This "IRREG" system sounds so much more complete etc. What kind of reports could this  IRREG  system provide that can be used for Internal Control purposes.      By the way why do you call it  "IRREG"?

From:   Jim@bcidot.org   

        Oh, the term  "IRREG" is just another goofy use of names   ---  we reference the central QBs set of books as the "REG" system so the name  "IRREG"  was used, etc.  In addition to what has already been mentioned, this  "IRREG"  QBs set of books is structured to provide at least these reports, etc:

RE: DONOR

     >>  Annual permanent giving record by Donor who are not part of Church's DonaMail system, etc.
     >>  A separate individual Donation receipt during the year for said donation
     >>  The total amount collected per Activity by Participant --- provides data so the Participant can dialog with each of their donors, etc
     >>  The amount of non-cash payments via DonaMail congregants from Scrip and Scholarship sources or reconcilement to REG info, etc.
     >>  Provide tax deductible information by Activity for placement within the
DonaMail system -- that includes data used for DonaMail control and subsidiary account internal controls.
     >>  A variety of reports that must agree with the applicable "REG" accounts, etc.

RE: ACTIVITY

     >>  Some of the above DONOR list
     >>  Total Activity amount received that can be reconciled with "
REG" set of QBs
     >>  The amount of non-cash payments from Scrip and Scholarship for reconcilement to
REG info, etc.

    As us for Journal Entries Samples with a three legged emphasis that reflect various activity with  IRREG  plus a sample of what a  IRREG  Trial Balance and/or Chart of Accounts could look like.   

    By the way, be sure and ask us about a certain  DonaMail  system listed when you  Click Here  that facilitates the non DONOR record keeping of who has yet to pay for their Church activity like   AWANA, Camps and VBS, etc.  Or there is no need to account for money for Church "Expected Receipts" from these activities via this  "IRREG"  QBs set of books

    From: Lee

          Very helpful, Jim.  

From: Jim

    Please note our   0079   "Self Help"  resource for Ministry users of QBs. 
    Would such a  "Self Help"  resource be helpful  for users of this
"IRREG"  Self Help QBs set of books?

  From: Lee

       Let me digest this more and I will let you know.  Thanx again, Jim


    The bulk of this Publication originated in  May 2007.   Click here and go to List of threads (THRDs) at www.bcidot.org  UPTD: March 09, 2012.  

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