This page is to document the best practice policy for the Treasurer. The goal of these practices is to provide consistent, transparent, reliable and simple financial recording and reporting.
- The church budget is voted by a duly called Church at Business Meeting.
- The Treasurer creates a budget based on the estimated expenses and requests from ministry leaders.
- The Church Bank Account has by SNEC policy two signatories who have check writing privileges
- No pastor cannot serve as a signatory for the church bank account
- Usually the treasurer as well as another elected church officer/volunteer serves as the second signatory
- Currently, a laptop is provided for use by the church Treasurer. This computer is the property of the Church and is transferred to the new treasurer. This computer is not to be used or contain personal information.
- The Treasurer is to protect the privacy and identity of all donors
- Therefore, the Treasury computer will be stored in a secure location when not in use and there will be a secure data backup
- The church at business votes the church budget for the fiscal year
- The financial records will be reconciled monthly by at least the first week of every month
- No negative balance will be carried over to the next month
- All church funds must be reconciled with current funds available in the church financial accounts
- Any outstanding checks that have not been cashed within 60 days, the recipient will be contacted to cash check before the check is canceled and another application for payment will need to be made to the Treasurer
Presentation of Financial Report
- The church Treasurer will create a financial summary for each church board meeting and church at business meeting to include funds received, transfers and year to date fund balances.
- The church Treasurer will also provide a complete Jewel, or the current church accounting program, report of all church active funds in use. This includes all outside funds in Church Bank, Atlantic Union Revolving Fund
- The Church Treasurer will provide both interpretation of the financial information present as well as guidance to fund use.
Fund Use and Issuing of funds
- The church board or church at business may vote to transfer money between funds only, not the treasurer alone
- The treasurer can issue funds or payment for those approved vendors, from budget funds in accordance with specific ministry activities or when the church board or church at business vote to use funds
- No reimbursement will be issued by the Treasurer without a legible receipt or invoice, itemized for multiple items and only from approved funds
- Restricted funds are those funds whose money is restricted for a specific purpose and cannot be used for transfer to another fund or use without the express will of the donors who have contributed the restricted funds
- Unrestricted funds such as the church budget is only used by the church board or church at business
- The treasurer only works under the authority of the church board or church at business only
- The church board determines either to reimburse approved expenses monthly or when submitted depending on the availability of funds; No reimbursement will be issued that would result in a negative balance
- Any member or church volunteer may appeal the church board or church at Business meeting for use of funds beyond the regular budget. These monies may be drawn from the unrestricted general church budget
The Southern New England Conference performs a routine sampling audit of the church bank account and the financial records for proper accounting of funds. The SNEC Audit can only provide guidance for accounting practices of the local church. An exception to this practice is when funds cannot be accounted.
- A donor may donate goods, services or funds to the church. The Treasurer informs the potential donor that the donation must be voted by the church to 'receive' if not part of a approved church project or campaign. The goal is to work in unity between the church mission, activities and goals and the donors.
- A donor may submit a receipt for the material good without a reimbursement to transfer the material goods into church property as part of a approved budget expense, church project or campaign.
- A donor may donate money to the church, but in order to qualify for IRS tax deductions cannot 'direct' the use of the funds for a specific action or purchase. Only general guidance of the funds can be given to the Treasurer.