A. INCOME

    > As a good steward, be sure that all

incoming funds are under the maximum

Internal Controls.

_____ _____ _____

    > We have concluded our Fund Raising

or Fund Gathering philosophy and policies

in a separate document.

_____ _____ _____

    > We will accept designated funds in

compliance with understood IRS regulations.

_____ _____ _____

    > We will be sure that our finance system

allows us to conform to IRS requirements.

_____ _____ _____

    > Any Ministry literature or tapes pro-

duced by Ministry Staff becomes the property

of the Ministry. Any possible Ministry Staff

royalty or amount of Inventory or scope of

the such Inventory is to be concluded

annually.

_____ _____ _____

< All Staff honorariums, particularly

those in cash or checks payable to the Staff

Member, are to flow through the Ministry

_____ _____ _____

< All monies not designated for specific

Staff/Projects (Board Discretionary Funds)

are to be managed righteously as would a

prudent person holding funds in trust.

_____ _____ _____

< Fund Accounting;

    External designations will be honored so

such fund balances are known regularly.

Any regular borrowing of such funds will be

not be allowed.

_____ _____ _____

     There may be Internal designations, or

Board authorized Set-A-Sides. Borrowing

of these funds may be permitted upon

authorization.

_____ _____ _____

B. EXPENSE

    < All of the following Staff Issues are

to be thoroughly covered in the Staff Handbook;

clergy status; salaries; housing allowances;

bonuses; social security; retirement; and such

benefits as medical and life Insurance.

_____ _____ _____

    < Staff ministry expenditures, or Minis-

try Expense Reimbursements (MER), are to be in

compliance with authorized project and bill

paying policy.

_____ _____ _____

    < General Fund (GPfund) Operations --

A Budget is to be authorized annually; subject

to possible 'during the year' adjustments

_____ _____ _____

    < All Expense advances will be settled

within a 30 day period of time

_____ _____ _____

C. FINANCIAL ACCOUNTABILITY

    < We will have an Periodic audit and

report on our finances by an outside

Auditor/CPA.

_____ _____ _____

    < We will have periodic examinations

and internal audits by the Board/agents.

_____ _____ _____

    < A part of our annual constituency

report will include a brief annual financial

report to clearly show, as a minimum, how much

came in and how it was spent.

_____ _____ _____

D. ASSETS

    < Cash

    Non of our cash deposits will be in a

un-insured account at a financial institution.

_____ _____ _____

    Our goal is to earn the maximum

amount of yield on the maximum amount of

deposits for the maximum of time.

_____ _____ _____

    < Non-Cash

  We will book all purchase of

Capital assets over _______; we will

regularly inventory our Capital assets

for full accountability.

_____ _____ _____

  We will not 'play the stock market';

either directly or indirectly; any stock gifts

will be turned into cash within 30 days of

receipt.

_____ _____ _____

   Generally we NOT invest any of our

Board Discretionary Funds in anything but

insured deposits with financial institutions .

_____ _____ _____

ACCOUNTS RECEIVABLE

      It is essential for every Christian School Ministry to have

viable policies in managing this extremely important asset. The

board should establish the policies and the principal/superin-

tendent should administer them along with any other appropriate

staff member. The board also needs to provide for any possible

policy deviation.

      We suggest the following possible board resolution:

BOARD RESOLUTION:

     Inasmuch as this school must meet its financial obligations

and have the proper witness in the community and to our staff by

paying our bills when due, and since the major source of our

finances are tuition and fees as paid for in an agreed fashion,

and since it is illegal in some localities and a negative prac-

tice to not send grades upon completion of the school, and in

spite of the need to be understanding when parents have a finan-

cial emergency; since our stewardship of finances includes using

the available leverage at our disposal to insure payment of such

tuition and fees........

Be it resolved that:

        Our accounts receivable collection policy shall include:

  A. It is our posture to work with the parents in all rea-

sonable attempts by the parents to keep their payments current.

Deviations from these policies are to authorized by _________.

  B. Parents will be encouraged to pay their semester or

annual tuition and fees at the first of the academic year; we

will offer financial discounts of _________________when this

happens.

  C. We realize that most of the parents will have to pay in

monthly installments and therefore set forth the policies that

appear below:

  D. We are in essence granting credit in the form of permit-

ting monthly installments and we need to know if parents are

credit worthy. Therefore, such parents must obtain a special

alternative way of borrowing money.

                         INSTALLMENT POLICIES

1. The amount of monthly payments are to be agreed to in writing

at the time of registration.

2. Payment coupons are ___ or are not ___ provided.

3. A direct deposit plan whereby parents can send their payments

directly to our bank is ___ or is not ___ provided.

4. Regular monthly payments will be due the first day of the

month - unless specifically agreed otherwise.

5. A 9-month payment plan will be offered. ___

    A 10-month payment plan will be offered. ___

    9-month and a 10-month payment plans will be offered. ___

6. There is a ___ -day grace period; if payment was due on the

______, no late fees will be charged until after the ______

(example is a 10-day grace period, with payments due on the 1st).

7. A late charge of ______(example is $10.00) will be assessed

when a payment arrives in the Business Office one or more days

after the grace period (example is the llth of the month or

after).

8. "PAY-TO-STAY" is a policy where monies due are paid by a

specific date or the student is not allowed to attend classes

until this is caught up. The "PAY-TO-STAY date" will apply to

payments that have been delinquent ___ days or more (example is

about 40; payment due 12/1/xx; PAY-TO-STAY date 1/10/xx).

SUGGESTED TERMS TABLE

    *Al1 accounts must be current (last monthly due has been

made, fees paid, etc.) before final exams - all students must

have Business Office clearance before tests can even be taken.

E. LIABILITIES

< Borrowing philosophy and limits;

     Generally we will not borrow from

external sources; Credit Cards will be

paid within 30 days.

_____ _____ _____

    As would a prudent business man, we

may borrow (certain leases are borrowing) to

fund purchase of certain equipment or vehicles .

_____ _____ _____

   As would a prudent business man, we

may borrow to acquire certain land or buildings.

_____ _____ _____

    As would a prudent businessman, we

may borrow from certain Board Discretionary

Funds to acquire capital assets.

_____ _____ _____

F. INSURANCE

    > Periodically the Board will conclude the

amount of necessary insurance for:

            General Ministry Liability

_____ _____ _____

            Specific Tangible Asset coverage

_____ _____ _____

            Board Member liability (directors & officers)

_____ _____ _____

G. GOVERNMENT MONIES

    > Payroll taxes to be handled in

accordance with understood regulations

_____ _____ _____

    > This Ministry will not accept or be

responsible for any non-payroll Federal, State,

County or local Funds.

_____ _____ _____

H. DEFERRED/PLANNED GIVING

> Generally, no operational funds will be

used to operate a Deferred/Planned Giving

program.

_____ _____ _____

I. AUXILIARY ENTITIES

     > Such entities are a subsidiary of ours

and subject to Board control and Tax Exempt

Status and regulations.

_____ _____ _____

     > The activity in their separate Bank

account will be reported annually to the Board

for unified finance accounting and reporting.

_____ _____ _____

J. BOARD FINANCES

           > No conflict of financial interest item

shall be allowed any Board member. 

_____ _____ _____

           > Annually a Non-Staff Board Treasurer

will be elected with written and agreed Minis-

try expectations. Generally this Board member

will NOT do the bookkeeping, but will concen-

trate on understanding and communicating fi-

nance matters to those who should know.

_____ _____ _____

           > There will be a Board appointed

Finance Committee that will be chaired by

the Board Treasurer or his appointee.

_____ _____ _____

K. WHEN MINISTRY HAS FOUNDER'S NAME

         < The founder's salary, benefits and

other financial 'fringe benefits', including

personal use of Ministry assets, will be annu-

ally authorized by Board action to insure that

these matters are fully known to all Board

members.

_____ _____ _____

             < Generally this above information will

be supplied to any Board qualified constituent .

_____ _____ _____

            < The Founder's annual tax return will be

available to any Board qualified constituent.

_____ _____ _____

            < As with any Staff Member, the Board

will authorize employment of any Founder's

family member.

_____ _____ _____

            < The founder's name is NOT in the

name of this Ministry, but the above require-

ments do apply.

_____ _____ _____

FISCAL YEAR

      < Our Fiscal Year End of ___________ is

after full consideration of the fact that

December 31 is generally a poor logistical time

to end a Ministry finance year.

_____ _____ _____