Finance_SOP_2023 JULY 2023.docx

Metropolitan United Methodist Church Reverend Darryl K. Mason Sr., Pastor Diane Butler, Finance Chair Deborah Jordan, Treasurer FINANCE POLICIES/PROCEDURES AND OPERATIONS MANUAL Updated 4/20/2021 JULY/2023 TABLE OF CONTENTS Mission Statement 4 Committee Members, Roles, and Responsibilities 5 The...

Metropolitan United Methodist Church Reverend Darryl K. Mason Sr., Pastor Diane Butler, Finance Chair Deborah Jordan, Treasurer FINANCE POLICIES/PROCEDURES AND OPERATIONS MANUAL Updated 4/20/2021 JULY/2023 TABLE OF CONTENTS Mission Statement 4 Committee Members, Roles, and Responsibilities 5 The Work of The Treasurer 6 General Policies 6 Procedures 7 General Instructions 13 Entering Identified Contributions into Quick Books 13 Account Monies 14 Account Monies 14 Year End – Quickbooks 14 Weekly – Quickbooks 15 Quarterly – Quickbooks 15 Beginning of The Month 15 Later In The Month 16 End of The Month 16 Updating the Pastor’s Deductions (PIP & Medical) 16 State Tax Payments 16 Reconciling Bank Statements 17 Processing Payroll Liabilities 17 Printing a list of the Stripe Deposits 18 nto Planning Center 19 Entering Planning Center Contributions into Quick Books 19 Paying Bills On-Line 20 Federal Tax Payments 20 Entering Unidentified Contributions into Quick Books 21 Creating a Pay Check 22 Fundraising and Ticket Selling 7Disbursement of Funds 8Disposition of Funds 9Keeping of Records and Generating Reports 9Regular Operating Budget of the Church 10Commentary on Stewardship 12Operating Procedures 13 Checking Savings Logging I TABLE OF CONTENTS (cont.) Counting Money 22Envelopes 22Checks 22Cash 23Loose 23Sunday School 23SHARE and Dinners 23Facility Rental 23Special Offering 23Reconciling 24Green Banks 24 Annual BWC Finance Reports 25 Fund Balance Report 26 Statistical Report 27 Statistical Report Verification 27 Benevolent Fund 30 Basic Qualifications for Recipients 30 Disbursement Criteria 30 Needs That May Not Be Met By The Benevolence Fund 31 Benevolence Request Process 31 Processing the Request 32 Financial Counseling 32 Church Credit Card 33-34 APPENDICES 35 Appendix 1 – Program/Activity/Finance Request Form 36 Appendix 2 – MUMC Credit Card Purchase Request Form 37 Appendix 3 – Claim for Reimbursement/ Advancement for Purchases and Services Form 38 Appendix 4 – Receipt of Funds Form 39 Appendix 5 – Personal Donation Form 40 Appendix 6 – Metropolitan United Methodist Church Summary Activity Plan 41 Appendix 7 – Finance Team Roles 42 Appendix 8 – Tithing Chart 43 MISSION STATEMENT (1/1/2012) We are ONE in the body of Christ conducting a mental and spiritual war on lack and want by opening our minds and spirits to increase. Increase defined: make great profit The forces that generate increase are mental and spiritual. Scripture: Lord, increase our faith. Luke 17:5 Honor the Lord with thy substance and with the first fruits of all thine increase. Proverbs 3:9 The lord shall increase you more and more, you and your children. Psalm 115:14 2012 Community Mission Goals Donate X number of blankets to Life Styles for the Winter 2012-2013 Safe Nights program. Support the Metropolitan UMC pantry start up and maintenance. 2011 Financial Goals Increase the monthly church income to meet monthly expenses....by initiating giving programs and emphasizing different aspects of stewardship throughout the calendar. TBD. Increase the 2011 church income by 10% over the 2011 income by campaigning for congregational tithing. Initiate fundraisers and direct the proceeds to rebuild the church savings account. FINANCE COMMITTEE MEMBERS Committee Chairperson and/or Co-chairperson Pastor(s) Lay Leader/Lay Member of Annual Conference Church Council Chairperson SPRC Chairperson or representative Trustees Chairperson or representative Financial Secretary* Treasurer*/Assistant Treasurer* Counters and others to be determined by the Church Council *These offices should be held by different people who are not immediate family members. COMMITTEE ROLE AND RESPONSIBILITIES (from the BWC Guidelines) The role of the committee on finance is to identify, perfect and manage the finance system for the congregation. The finance system is the processes of raising, managing, and dispersing the finances so that the mission and vision of the congregation can be achieved. The responsibilities of the committee include, but are not limited to the following: Compile a budget. Submit budget to the Church Council for review and adoption. Develop and implement plans to raise sufficient income. Develop and implement a stewardship program. Administer the funds according to instructions and approvals of the Church Council.  Administer the funds according to instructions and approvals of the Church Council. Provide financial communications using the following media: Worship Bulletin/ Electronic bulletin Board Offertory sentences and announcements Church Newsletter/ Metropolitan Messenger Giving Statements messenger Treasurer's report Finance chairperson report/ results of giving See chart in Appendix 7 for “Finance Team Roles Chart” Carry out the Church Council’s directions by guiding the Treasurer and Financial Secretary in the following activities. Note: These two people should not be in the same family. Counting the offering Generating and reporting a record of funds received to Treasurer and Finance Committee. Depositing funds promptly (Committee sets procedures for this). THE WORK OF THE TREASURER Disburse all funds to causes represented in the Church Budget. Administer and disburse other funds and contributions, as Church Council shall determine. Remit each month to the Conference Treasurer, the fair share (10% idea). Provide an annual audit. Recommend a proper depository for the church’s funds. (Deposits to be made promptly in the church’s name) Forward contributions made for special causes promptly. Follow the budget unless altered by Church Council. Report annually to Church Council regarding all designated funds. Keep records of all contributions and payments (posted by the Treasurer / Financial Secretary). GENERAL POLICIES The Chairperson, Treasurer, Assistant Treasurer, Finance Secretary, and Counters are bonded by the Baltimore-Washington Annual Conference. The Metropolitan Finance Policies and Procedures/Financial Guidelines shall be reviewed annually and updated as required. There shall be an annual audit of the financial statements for all MUMC ministries and accounts. There shall be a joint meeting between the Finance Committee and the Board of Trustees at least semi-annually. A special meeting may be called for an emergency to coordinate the expenditure for a major improvement or purchase. The “Program/Activity/Finance Request Form (Appendix 1) are available in the administrative office to initiate church sponsored activities. Completed forms must be returned to the Administrative Secretary and forwarded to the Finance Committee. All purchase requests for materials and supplies from vendors, on behalf of Metropolitan United Church, shall be submitted on the “MUMC Credit Card Purchase Request Form” (Appendix 2) or “Claim for Reimbursement/ Advancement for Purchases and Services Form” (Appendix 3). All approved requests for credit card purchase or reimbursement/ advancements shall be submitted to finance with receipts attached. Authorization for purchases and services Purchases and services from vendors that are initiated by ministries and the Administrative Secretary need approval from the Pastor or Finance Chairperson. Major purchase(s) and services shall be approved by the Church Council. All requests for purchases and services shall be routed through the Administrative Secretary who shall issue a purchase order number. All incoming materials and supplies shall be received by the Administrative Secretary. Received materials should be reconciled with a Purchase Order Number (PO#). Funds to the needy shall be distributed at the discretion of the Pastor in the form of a check from the appropriate resource with proper documentation. Checks should be addressed to the agency of need, i.e., not an individual. A person receiving financial aid shall not be identified in the Treasurer’s report. The allotment shall be designated as a “needy disbursement.” All funds raised in the name of the Church must be deposited in a church bank account and credited to the general church budget. Ministries must submit raised funds to the finance committee on the “Receipt of Funds Form” (Appendix 4). No financial obligation shall be incurred in the name of the church without prior approval by the appropriate ministry/committee chairperson, Finance Committee, Pastor and/or Church Council. PROCEDURES Fundraising and Ticket Selling The Finance Committee shall encourage fundraising campaigns to raise funds to satisfy the Church obligations and to balance income and expenditures during each fiscal period. Fundraising activities shall be scheduled with the approval of Trustees and the Church Council. Church ministries/organizations shall print and sell tickets, in the name of Metropolitan United Methodist church, only with the approval of the Pastor and Church Council. All church ministries/organizations sponsoring fundraisers shall underwrite all costs relating to that activity; i.e., speakers, etc. Church Ministries shall complete “Receipt of Funds Form” (Appendix 4) when submitting monies from a sponsored activity. A financial report of the sponsored activity shall be made to the Finance Committee within one (1) week after the activity. The report must contain all required documentation of expense receipts and proceeds. Disbursement of Funds The priority in the disbursement of funds shall be made by the Chairperson of Finance, the Treasurer and/or the Pastor. Funding requests for projects or activities, etc., shall be submitted to the Church Council for action. If approved, the requester may request approval from the Finance Committee). (Appendix 6) The name of the Ministry shall be written on all order forms. All purchases shall be made through the Administrative Secretary. All claims for reimbursement shall be completed with receipts attached, signed by the requester, approved by the Ministry Leader, and submitted to the Finance Committee. All claims for reimbursement shall be for pre-approved activities. (Appendix 3) All requests for purchases of goods and services that require the use of the Metropolitan United Methodist Church Credit Card must complete the “MUMC Credit Card Purchase Request Form” (Appendix 2). This form must be approved by the Ministry Chair, Trustee Chair, Pastor, and Finance Representative. Once approved, a copy of the invoice from the vendor must be provided to Finance to reconcile the process. If there is an emergency service order is required, a verbal approval from Finance and/or Pastor is acceptable. A request for more than five hundred dollars ($500.00) from the Church General Fund shall be made in writing and approved by the Church Council at its first meeting following the request for funds. All approved cash disbursements shall be made by the Treasurer or designee. The Treasurer nor the Financial Secretary should be an authorized signature/check signer. An honorarium of one hundred fifty dollars ($150.00) shall be paid to all guest ministers or speakers who speak during a regular service at the Church. An honorarium to be determined may be paid to an in-house clergy and/or pulpit staffer who speaks during a regular service at the Church. Ministries are requested to notify the Treasurer and/or Assistant Treasurer in advance of a guest speaker for an afternoon or evening service in order to make payment by check. The Treasurer shall pay existing bills from general funds which are derived from weekly offerings for current expenses, special events and programs, non -designated contributions and gifts. All benevolence and apportionment funds shall be sent monthly to the Conference Treasurer by the Church Treasurer. Grant funds shall be maintained and accounted for in accordance with grant requirements. All questions concerning policies and procedures for handling funds may be cleared to the Finance Chairperson or the Treasurer. Disposition of Funds All solicited and unsolicited funds, received in the name of Metropolitan United Methodist Church by an individual or organization, shall be submitted to the Treasurer for deposit. Regular tithes and offerings of cash and checks shall be submitted and recorded using the offering envelope or using an electronic method. All monies shall be turned in to the General Church treasury, except funds held by the United Methodist Women and the United Methodist Men organizations. All funds collected at the Church for morning, afternoon or evening affairs shall be turned in that day for deposit, if possible but no later than next business day. The Finance Committee will accept checks made payable to Metropolitan United Methodist Church for contributions but is not authorized to cash checks made payable to individual congregational members. Funds in escrow shall have a stated purpose. All ministry funds shall be transferred to the general fund (except grant funds) by the end of the fiscal year (January 1 – December 31). Keeping of Records and Generating Reports Credit for the current year documented contributions MUST be requested no earlier than January 1. Membership contribution statements shall be provided annually to each member for income tax reporting. Annual statements shall be distributed by the end of January following the tax year. The church statements of accounts must be kept current by the Finance Secretary. The Finance Committee must generate and report all data requested by the Baltimore Washington Conference. The Finance Committee will provide a quarterly report to the congregation on the financial standing of the church. The church income and expenditures shall be reported. The Treasurer shall present a monthly report on the financial status of the church at the monthly Church Council meeting. An audit shall be conducted monthly by designated members of the Finance Committee and annually by a designated member of the Audit Committee. Three (3) members of Metropolitan United Methodist Church shall be appointed to the Audit Committee by the Church Council. The Audit Committee shall audit all financial reports and shall report to the Church Council three (3) months after the beginning of the year. All records, financial or other, under the auspices of the Finance Committee shall be kept current and in secure storage. Regular Operating Budget of the Church The church budget shall include: Outreach Conference and District Apportionment. Local church mission projects giving. Advance special gifts which are in the budget. (Theologically, everything in the budget is mission money because everything supports the mission of the church. Program – built upon ministry plans and visions Ministries to, with, and for the life of the church. Nurture, Outreach and Witness Age-level, ministry-driven – all the local church support. Includes education, evangelism, worship, etc. Operations – the necessary administrative support Utilities, telephone, insurance, printing, office expenses, general maintenance, equipment, supplies and parsonage care. Capital expenditure – major repairs, replacement, and development. Staff Support; salaries and benefits. Cash support, pension, medical insurance, expense allowances, continuing education, payroll taxes, and contingency. Capital Funds Building Fund, including debt retirement Deferred maintenance Major projects (boiler, roof, HVAC, painting, insulation). Special Mission Projects Special Sunday offerings Disaster relief offerings Mission teams Food pantry, community dinners and the weekend backpack program Special Funds Easter lilies and Christmas flowers Wednesday night dinners Van, organ, etc. COMMENTARY ON STEWARDSHIP Raising the Money We need to give more than God needs to receive. It is God’s tithe – first 10% – Everything else is offering. Ideally, we would never have to ask. Realistically, we have to provide the information. A year-around issue – not just one season. Pastor needs to preach about giving and tithing (more than once a year). Committee and lay leadership need to be unashamedly supportive of the Pastor’s “talking about money.” Expect people to give. Set the example. Theologically, giving is a spiritual issue. Our giving is a measure of our spiritual health. We give because God gives. We can’t out-give God! We give in response to God’s love. We need to give more than God needs our gifts. We give, not to win God’s approval, but to celebrate the “worth” God gives to us. In the Bible, there are 500 verses about prayer and fewer than 500 on faith. But there are more than 2,300 verses about money and possessions! One sixth of the sayings of Jesus are about the use of material resources. Sixteen of the thirty-eight parables of Jesus are about Stewardship. In the Gospels, one of every ten verses deals with money. Tithing is our Biblical response to that which is Holy. Giving is a part of worship…it is Spiritual and Sacred. Expect people to give. Set the example. See “Tithing Chart” in Appendix 8 OPERATING PROCEDURES General Instructions 1. When paying bills through the mail, place the check number and the date the bill was paid on the invoice placed in the files. 2. When paying bills online, use: an eight (8) position number to record on the invoice in the files, a 4-position year, dash, and a 3-digit number beginning with 001. Example: 2015-001 The check number on the check register is replaced with this number. A copy of the bills paid online is printed for each bill and stapled to the bill before placing in file. Entering Identified Contributions into Quick Books Log into QuickBooks Select “Donations” from the screen Under Customer: Job Select name of Contributor Tab to Class: Select the Class Tab to Date: Set the date of contribution (Normally this is Sunday) Tab to Check No: Enter the check number if it is a check/money order Tab to Payment Method: Select Payment Method If Stripe select more and select ‘Stripe’ Tab to Item: Select Item Tab to Description: Enter a Description if needed Tab to Amount: Enter the Amount Select “Deposit to”: Change if not correct Select Save & New to enter deposits for a new account or Save & Close to Exit Checking Account Monies You will need a: total for currency total for coins total for checks, and an overall total for the checking account Savings Account Monies You will need a: total for currency total for coins total for checks, and an overall total for the savings account If everything is okay, fill out the Cash Receipts Voucher. After all monies have been counted and recorded. Fill out the deposit slips for checking and savings. You do not have to list each check, just run a check total for each deposit slip. Make sure all checks are stamped. Make a copy of the deposit slip. (The original goes to the bank). The original Cash Receipts Voucher and a copy of the deposit slip is given to the Treasurer. The money can be placed in the safe in the Finance Office or it can be deposited in the night deposit box at Community Bank of the Chesapeake Shore United Bank in Bryans Road (if you deposit it, let Alvin Marbray know). The bag needs to be picked up during the week and the verified deposit slip given to the Treasurer or Assistant Treasurer. Year End – Quick Books Process quarterly reports for accountant Payroll Summary Employee Earnings Summary Take reports to accountant The accountant will process the quarterly statements Sign and mail statements Mail W2’s Process the ‘Contribution Statements’ for all Process the ‘Local Church Report to the Annual Conference’ Process the ‘Fund Balance Report’ for the BWC Put together the contribution package for all contributors to include: Contribution Statement Single contribution greater than $249.00 statements (If applicable) IN-KIND Contributions When changing the pastor’s salary, pip contributions, housing allowance, health insurance (pre-tax), go to list/ payroll item list and make the necessary changes on the payroll item list as well as in the pastor’s payroll file. Weekly – Quick Books Enter Contributions Pay Bills Process Payroll: Pastor – Bimonthly (15th & 30th) Musicians – See Schedule Secretary – Bi-weekly Do a Backup on a CD and the Flash Drive (CD goes in the File Cabinet and then Flash Drive goes home) You can process ‘Planning Center’ or wait until the end of the month QUATRO PRO Enter in any IN-KIND Statements Quarterly – Quick Books Deposit State taxes on-line Process quarterly reports for accountant Payroll Summary Employee Earnings Summary Take reports to accountant The accountant will process the quarterly statements Sign and mail statements Create Quarterly Report for church Beginning Of The Month Create Expense Report for Church Council Reconcile Bank Statements Process Checks for: NETS Later In The Month Process Checks for: Apportionments Medical (Full time Pastor) >> (should it be ‘Full or Part-time Pastor’?) CRSP (Full time Pastor) >> (should it be ‘Full or Part-time Pastor’?) General Board of Pension and Health Benefits (Full time Pastor) >> (should it be ‘Full or Part-time Pastor’?) End Of The Month Process Federal Withholdings Deposit Federal Withholdings Online Process Contribution Statements Process ‘Planning Center’ Updating The Pastor’s Deductions (PIP & Medical) Lists Payroll Item List Edit Preferences Payroll and Employees Company Preferences Employee Defaults Employee Center Hackey (should it be ‘Pastor’s last name’?) Edit Employee Payroll and Compensation Info State Tax Payments Process the State Taxes in Quick Books Write down the ‘TOTAL TAXES PAID Get into the Internet Go to favorites and select “Maryland Taxes Online” Click on ‘Log On’ User ID = metroumc Password = Metro*3385 Select Logon Press ‘OK’ Select ‘File Sales and Use Tax Returns’ Press ‘OK’ Select ‘File Withholding Returns’ Select ‘Next’ Select ‘Next’ Enter the Period Ending Select ‘Next’ Enter the Taxes Select ‘Next’ Select ‘Next’ Select ‘Confirm Submit’ Select ‘OK’ Select ‘Print’ Select ‘OK’ Print 2 Copies Select ‘Logoff’ Select ‘OK’ Reconciling Bank Statements Log into Quick Books Select Banking (from the top of the screen) Select ‘Reconcile’ Select the correct account Make sure the statement date agrees with what is in the bank statement. If not, change it. Enter the ‘Ending Balance’ from the bank statement Enter any ‘Service Charges’ and/or ‘Interest Earned’ and make sure the date agrees with the bank statement Processing Payroll Liabilities Go to Employees Click on ‘Process Payroll Liabilities’ Click on ‘Pay Payroll Liabilities’ Select the payroll liabilities to be paid General Board of Pension & Health Benefits Select PIP Create the check Go into the ‘Check Register’ Edit the Liability check and change the amount to the amount on the Bill Save the check Medical Statement Select Medical Create the check Go into the ‘Check Register’ Edit the liability check and change the amount the amount the Pastor Pays Save the Check Create another check for the full amount Print the check with the full amount. Do Not print the check with what the Pastor pays. After printing the check, change the amount on the check to what the church pays. Change the check number on the check with the Pastor amount to the same number as on the check you printed with the full amount. Printing a List of the Stripe Deposits Go online to Community Bank of the Chesapeake Shore United Bank Select Business Enter the USERID: metroumc Select ‘LOGIN’ Enter the Password: Press ‘ENTER’ Select ‘CHECKING’ Change Transaction Type to ‘Credit’ Select ‘View Transactions’ Right Click the mouse Print the page Logoff Logging Into Planning Center ID: 3013260369 PASSWORD: Salvation2020* Select “SERVICES” in the Upper Left Conner Select “ACCOUNTS” Select “ACCOUNTS” in the Upper Left Corner Select “GIVINGS” Select “Stripe Payouts” Select a Date Range Select “Print” Select “Print the Report” Close the Screen by Selecting the “x” in the upper right corner, then click the down arrow on the picture in the upper right corner and select logoff Entering Planning Center Contributions into Quick Books Log into the “Community Bank of the Chesapeake Shore United Bank” screen Select “Checking Account” from the screen Enter in a “Beginning Date and a “Ending Date” Select “Credit” for Press “Select” Print Report Log into “Planning Center” Select “Services” Under “Services”, Select “Stripe Payouts” Select a Date Range Under “Export” Select “Print View” Print the Report Reconcile the “Credit Report” from Community Bank of the Chesapeake Shore United Bank to the report from Planning Center. Enter the new contributions into Quick Books. Paying Bills On-line Get into the Internet Select Community Bank of the Chesapeake Shore United Bank from favorites (www.cbtc.com) Select Business Enter the User Id: metroumc Select “LOGIN” Enter the Password Press “Enter” Select ‘Manage Tools’ Select ‘Bill Payment’ Make payments Select ‘Make Payments’ at bottom of screen Select “PRINT” Print a copy for each bill Select ‘Finish” Select ‘Signout’ Select ‘Logoff’ Federal Tax Payments Process the Federal Taxes in Quick Books Write down the: TOTAL TAXES PAID TOTAL FEDERAL TAXES PAID TOTAL SOCIAL SECURITY PAID TOTAL MEDICARE TAXES PAID Get into the internet Go to favorites and select ‘IRS’ www.eftps.gov Enter User ID = 52 2046508 Enter Pin = 0923 Enter Password = Metro*9088 Select ‘LOGIN’ Enter Tax form ‘941’ Select ‘NEXT’ Select ‘Federal Tax Payment’ Select ‘NEXT’ Enter Payment Amount Select the quarter of the payment Enter the Year Enter the Settlement Date (Should be on or before the 15th) Select ‘NEXT’ Enter the Social Security Amount Enter the Medicare Amount Enter the Federal Tax Amount Select ‘NEXT’ Verify the information entered Select ‘Make Payment’ Select ‘Printer Friendly Version’ Right Click the mouse Print 2 copies Go back the previous screen Click ‘Thank You’ Click ‘Logout’ Click ‘Accept’ Follow Instructions Entering Unidentified Contributions into Quick Books Log into Quick Books Select “Record Deposits” from the screen Tab to “Deposit To”: Select the correct account Tab to” Date”: Set the date of contribution (Normally this is Sunday) Tab to “Receive From”: Select “Unidentified Givers” Tab to “Account”: Select the Account for Deposit Tab to “Memo”: enter a memo if needed Tab to “Chk No”: Enter the check number if it is a check or money order Tab to “Pmt Meth”: Select Payment Method Tab to “Class”: Select Class Tab to “Amount”: Enter the Amount Repeat until finished Select Save & New to enter deposits for a new account or Save & Close to Exit Creating a Paycheck Log into Quick Books Select ‘Employees’ from the top line of the screen Select ‘Pay Employees’ Make sure the ‘Pay Period Ends’ Date is correct. If not, change it. Make sure the ‘Check Date’ is correct. If not, change it. Select the employees to be paid Click on ‘Continue’ Click on ‘Open Paycheck Details’ Verify Click on ‘Create Paychecks’ You will have to enter the ‘Hours’ worked for hourly employees (i.e., Administrative Secretary) When processing the Administrative Secretary’s paycheck, place the check number and date on the time sheet before placing in the files. Counting Money Envelopes/Any Envelope Check that the amount on the envelope is equal to the amount on the check. If they are different, initial the envelope and return it to the customer. Make sure the information on the envelope is legible. If not, make it legible. Checks Make sure the check is filled out properly. The number amount matches the written amount The check is signed. If there is a check in the envelope and there is no name on the envelope, fill in the envelope with the name, address (for visitors), the amount and the check number. Cash If there is cash in the envelope, check that the amount on the envelope is equal to the cash amount. If they are different, initial the envelope and return to the Customer. If there is cash in the envelope and the envelope does not have a name on it, lace the money with the loose money. If everything is OK write the check number on the envelopes that had checks and write ‘CA’ or ‘CASH’ on the envelopes containing cash. Loose If there are any checks, fill out an envelope and place with the regular offering. Fill in the name, address (if visitor), the amount and the check number. Total the loose. Write the total on the Cash Receipts Voucher in Loose under Checking. Sunday School If there are any checks, fill out an envelope Fill in the name, address (if visitor), the amount and the check number. Total the Sunday School. Write the total on the Cash Receipts Voucher in Church School under Checking. SHARE & Dinners Write the total on the Cash Receipts Voucher in Share under Checking or the appropriate line. Do Not fill out envelopes for checks. Facility Rental Write the total on the Cash Receipts Voucher in Hall Rental under Checking. Fill out an envelope if one has not been filled out. Fill in the name, address, the amount, and the check number. Tree of Life Make sure that the envelopes are filled out Fill out an envelope if one has not been filled out. Fill in the name, address (if visitor), the amount and the check number.) Total the Tree of Life. Write the total on the Cash Receipts Voucher in Tree of Life under Savings. Special Offerings Go under checking unless otherwise noted. If there are any checks, fill out an envelope Fill in the name, address (if visitor), the amount and the check number. Total the special offering. Write the total on the Cash Receipt Voucher. If there are other offerings, you need to determine where they go. If any group has designated fund raisers, the monies go into savings. After opening all envelopes, stamp the back of the checks with the appropriate stamp. Run a tape for each category. (Tithes and Offerings, Sunday School, etc.) Example: for Tithes and Offerings separate the money into bills, coins, and checks. Order checks by amount from lowest to highest. Order envelopes by the amount on the Tithes and Offerings line for lowest to highest. Separate bills by denomination and count placing a total amount on each pile. Run a tape for bills. Run a tape for the checks. Run a tape for envelopes. The total of the bills, coins and checks should equal the total of the envelope tithes and offerings. If not, reconcile. This procedure can be used for any envelope. Reconciling Check the envelopes to make sure no monies are in the envelope. Compare the checks to the tape to make sure the number and amounts are equal. Compare the checks to the envelopes to make sure the envelope amounts are correct. Once all the totals agree you can combine all checking accounts funds together and all savings account funds together. GREEN BANKS Green Banks should be deposited each week when they are received. At church In the Finance Office, go to the file cabinet Open the 3rd drawer, find the folder marked “green banks”. Get a deposit slip (savings account). At the bank Go to the coin machine. Empty each bank one at a time. Do Not empty all banks in coin machine together! Get a receipt for each bank emptied. After all banks are done, tally the receipts and add the total on the deposit slip. Take deposit slip to bank; get receipt of funds; take back to the finance office. ANNUAL BWC FINANCE REPORTS Finance is required to submit the Fund Balance Report and Statistical Report to the Baltimore Washington Conference annually. Fund Balance Report The Fund Balance Report is an annual audit of the records of all the previous year’s financial officers (including the Treasurer, Financial Secretary, or Church Business Manager) of the church and all its organizations. This report is generally due in the Baltimore Washington Conference Center annually on June 30. The BWC Center generally emails churches beginning in April or May. The form is prepared in a downloadable, editable Microsoft Excel spreadsheet by the Church Treasurer with financial information from treasurers of the United Methodist Men and United Methodist Women. The Administrative Assistant or Treasurer contacts Treasurers of the United Methodist Women and United Methodist Men for the following information: The final report is reviewed by the Finance Chair, Treasurer and Pastor before submission to the Conference Center, and a copy of the final report is filed. (See attached sample form) Statistical Report The Statistical Report is an annual report of the previous year’s operations in the following four (4) areas: Table I – Membership and Participation Statistical Reporting (Worksheet 1 – For Line 48b) Table II – Church Assets & Expenses Table III – Church Income The report is prepared in a downloadable, editable Microsoft Excel spreadsheet by the Church Treasurer, Pastor, and Administrative Assistant. It is prepared through the BWC on-line reporting system called “EZRA”. The church password to access EZRA is: User: BWC-8420-F3 PW: salvation2018 (Note: The password may change each year) This report is generally due in the Baltimore Washington Conference Center annually at the end of January. The BWC Center generally emails churches in December. (See attached sample form) Statistical Report Verification The Treasurer’s Office of the Baltimore Washington Conference will send an email to confirm the statistical information submitted approximately one month after we submit our report. The Finance Chair must review and submit approval within the required time (See below). BENEVOLENCE POLICY (DRAFT) Basic Qualifications for Recipients In order of priority, recipients of funds disbursed from the Benevolence Fund are at the direction of the Benevolence Committee are: Church who are regular attendees Those whose names are on the roll but not regular attendees Community organizations Transients (those not of the community but are passing through) Ministries and Christian agencies that serve people with the same needs as those which fit the criteria for assistance from the Benevolence Fund, but which provide services the church does not. Employees of the church. The Benevolence Fund will occasionally assist staff in need subject to the guidelines. In infrequent circumstances, the Benevolence Fund may be used to pay church related expenses. Special projects, funded by special offerings designated for the Benevolence Fund, might include supporting local outreach ministries to the poor or providing assistance during times of catastrophe or major crises. Disbursement Criteria The stated purpose of the Benevolence Fund is to meet peoples' basic needs, such as, but are not limited to: Lodging Utilities (electric, water, sewage) Food Clothing Medical treatment Funeral expenses Needs that may not be met by the Benevolence Fund include: School expenses, business investments, or anything that brings financial profit to the person or family. Paying off credit cards. Exceptions can be made when an individual has had to use a credit card in a crisis or emergency (e.g., hospitalization, death, etc.) Needs of individuals who are wanted by the law or for paying fines as a result of breaking the law Housing for unmarried couples Legal fees Penalties relating to late payments or irresponsible actions Cable/ telephone bills (unless person is disabled or has special needs and need telephone service) Private school fees or tuition Business ventures or investments Benevolence Request Process Generally, assistance from the Benevolence Fund will not exceed $3,000 per person or family per calendar year (this is a cumulative cap in the unusual case of someone who receives more than one gift from the fund). In very unusual circumstances, families and individuals who need substantial funds (over $3,000) can continue to be assisted up to whatever limits the Benevolence Committee deems appropriate. Such cases should be reviewed carefully and, when appropriate, additional accountability should be sought. A Request for Assistance application (copy attached) must be filled out by the person or persons requesting help or by someone who is assisting the person in need. In either case, the person must be in the presence of a representative of the church. This church representative will record references and contacts to validate the need. Husbands and wives are to make a joint request for assistance. Processing the Request The Request for Assistance application is returned to the Finance Committee. The process should take no more than one week. The Committee shall select at least one member to evaluate, investigate and verify each request. The information shall be brought back to the Finance team in a timely manner for assessment and validation. Financial Counseling Financial assistance for counseling will be considered if it is perceived that counseling would directly enable the individual to address a current financial situation. In most cases, this would be limited to an initial counseling appointment. Under special circumstances, additional financial help could be given. CHURCH CREDIT CARD POLICY AND PROCEDURES POLICIES When the goods and services are procured for Metropolitan United Methodist Church, the vendor should be requested to bill the church so payment can be made directly to the vendor. This is especially important for large purchases since it will allow the Finance Office to be prepared for a large bill to be paid. The church has many accounts with businesses that send monthly statements for payments. These businesses charges have been pre-approved by the Ministry responsible and placed on the church accounts for processing. If a Ministry receives an invoice/statement for payment, they should immediately forward that document to the Finance Office for processing. Charges made without prior approval will be forwarded to the Church Council for further action, if deemed necessary. If a church member purchases an item for the church using their personal check, credit card or cash, they should submit the sales receipt with a completed “Claim for Reimbursement/Advancement for Purchases and Services” Form (see attachment A). The church will not reimburse purchases made using the government WIC/EBT credit cards. Those funds were issued by the government for that individual only and never should be reimbursed for any purchases made on behalf of the church. Attachment A will be signed by the requestor and approved by the Ministry Leaders and Finance Committee. Reimbursement will be made to the individual who will be responsible for paying his or her credit card company where the item was charged. (The church is not concerned that people may benefit by receiving rebates or premiums for these purchases made to their credit cards, trusting each individual to fulfill their fiduciary responsibility to the church.) PROCEDURES 1. Personal item(s) may not be charged at any time for any reason. Please protect the church credit card as you would your own. Do not leave it unattended. 2. There will be NO cash withdrawals 3. The Ministry should have an estimate of the total expense of the purchases they are requesting PRIOR to using the church credit card. 4. Only pre-approved ministry-related items are to be charged on the credit card. The card is to be used for purchases for church use only. (If there is a question, talk to the Finance Chair or Treasurer.) 5. Purchases exceeding $500 need prior approval by the Finance Committee and Church Council. This can be done by completing a “MUMC Credit Card Purchase Request Form” (see attachment B) and having it approved as indicated on the credit card form. 6. Misuse of the card: a. First Offense – Verbal warning b. Second Offense – Card surrendered for one month c. Third Offense – Card surrendered for twelve months 7. Detailed receipts are required for each purchase. Phone and web orders will require a receipt. You can always email all web order documentation to the church email at [email protected]. Please keep careful track of your receipts so as not to lose them. 8. Repeated submission of monthly expenses without all supporting receipts constitutes misuse. In cases where a receipt is lost, please notify the Finance Committee immediately. 9. Credit limits must be respected. Over-limit charges (without prior approval) will be reported to the Finance/Church Council for resolution. 10. Lost or stolen credit card must be reported immediately 11. The Finance Committee will review on a monthly basis the credit card statement to ensure that documentation and credit limits are followed. 12. The church member responsible for use of the church credit card should sign this policy and procedures upon receipt/usage of the credit card. I have read the Church Credit Card Policy and Procedures; I understand, and I agree to abide by the terms. __________________________________________ _______________ Signature Date Appendix 1 Program/Activity/ Finance Request Form Appendix 2 MUMC Credit Card Purchase Request Form Appendix 3 Claim for Reimbursement/ Advancement for Purchases and Services Form Appendix 4 Receipt of Funds Form Appendix 5 Personal Donation Form Appendix 6 Metropolitan United Methodist Church Summary Activity Plan P1-1 Complete Form to “Request Activity” and with approved date from Administrative Secretary. P1-2 Forward to Trustee for approval/denial of activity with date. P1-3 Submit Proposed Budget for Activity to Finance Committee for approval/denial. P1-4 Finance determines if activity is in the Ministry budget. P1-5 If YES in Budget Funds are available, proceed forward to Church Council for approval/denial. P1-6 If NO, funds not in Ministry budget activity can be submitted to Church Council for approval/denial for funds from General Fund Financing. P1-7 Request denied by Church Council return request form back to Ministry. P1-8 Request approved by Church Council, Ministry can proceed with activity. Appendix 7 Finance Team Roles Appendix 8 Tithing Chart