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Ministry of the Church Treasurer


Table of Contents

The Treasurer as a Steward …………………………………………………………. 002 Core Competencies of a Treasurer ………………………………………………… 003 Specific Roles and Responsibilities ………………………………………………. 004 Chronological List of Tasks for the Treasurer …………………………………… 005 References and Resources …………………………………………………………... 007 Forms …………………………………………………………………………………….. 009


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The Treasurer as a Steward

The ministry of the church’s Treasurer is one of Stewardship—that is, managing, safeguarding, and maintaining the financial resources entrusted to the church by the congregation and others to carry out its mission and vision.

Though the Board of Directors and others in the church—counters, budget teams, stewardship committees, etc—all share responsibility as stewards of church assets and financial operations, it is the Treasurer who has the specific responsibility of day-to-day management of the church’s financial resources by: 1) ensuring that sound fiscal practices and procedures are followed in compliance with the church’s Financial Operating Procedures (FOP) 2) providing accurate, up- to-date financial information on the church’s financial position to the congregation and to the Board for review and decision-making purposes. Candidates for Treasurer are members of the Board of Directors, as elected by the congregation. Usually, the position of Treasurer is elected by and within the Board itself. The Treasurer is accountable to the congregation through its relationship to the Board of Directors and acts on authority granted the position by church by-laws and the Board.

MCC Resource for Treasurers of Our Local Churches US Edition


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Core Competencies of a Treasurer

One does not have to be an accountant or bookkeeper to be a good church treasurer. However, there are several qualities necessary to be successful in the position. 1. Honesty and trustworthiness—the congregation must have complete confidence in the one who manages their gifts to God’s church. 2. Well-organized—the Treasurer is responsible for ensuring that many tasks are completed, both accurately and in a timely manner; organization and attention to detail is critical. 3. Willingness to learn and seek guidance—those coming to the Treasurer’s position without formal accounting or bookkeeping training must become familiar with basic accounting principles, and the nuances of fund or church accounting, as well as the financial operating procedures specific to their local church. If the policies and procedures are non-existent or incomplete, it is the responsibility of the Treasurer to request that the church address such issues as soon as possible. 4. Commitment—the Treasurer’s job is time-consuming. Even though a number of tasks can and should be delegated to others, it remains the Treasurer’s responsibility to ensure that those tasks are completed in an accurate and timely fashion. This may require up to 6 hours per week. 5. Ability to work well with others—A significant part of the Treasurer’s responsibilities involves interacting with others within the church, for example, the other members of the Board, church staff, various committee members, volunteers, and individuals in the congregation. The Treasurer should be able to confidently convey information, delegate necessary tasks, and direct and empower volunteers in a courteous, agreeable manner.

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Specific roles and responsibilities The Treasurer essentially serves as the Chief Financial Officer for the church. Specific responsibilities—which should be set forth in a job description—include, but are not limited to:              

Maintaining accurate records of church finances Overseeing the receipt and recording of all income Overseeing the Disbursement and recording of all Expenditures Performing or overseeing the recording of all members’ gifts into personal giving records. Managing Payroll or working directly with a payroll company Preparing the monthly (or quarterly) financial reports for the Board of Directors Working with the Board of Directors to establish spending priorities Filing required tax forms (local, state, and federal) Filing required monthly, quarterly, and annual reports to MCC. Ensuring payment of monthly Tithe to MCC. Overseeing the counting and depositing of tithes and offerings. Providing the congregation with any requested financial information Assisting in the preparation of the annual Budget for the church Overseeing internal controls to protect the assets of the church.

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Chronological List of Tasks for the Treasurer

Weekly/Bi-weekly

1) Ensures that payroll information is submitted timely to the church’s payroll processing service, if applicable. 2) Ensures that invoices, check request forms, and checks are processed in accordance with the church’s FOP. 3) Ensure that qualified counters are available each Sunday (and for every event in which an offering is collected). 4) Ensure that deposits are made or properly secured in accordance with FOP. Monthly

1) Ensures that bank statements are reconciled. 2) Ensures that an up to date analysis of the current financial position of the church is available for review at each Board meeting, including bank account balances, fund balances, and detailed actual versus budgeted income/expense analysis of the Operating Fund. 3) Oversees the preparation and submission of the monthly Tithe and Tithe report to the UFMCC. Quarterly

1) In the event that payroll is handled within the church, the Treasurer shall ensure the following items are completed in a timely basis: a) Submits quarterly withholding taxes to the IRS or an approved agent b) Submits quarterly 941 report to the IRS of payroll and deductions 2) Oversees the preparation and submission of quarterly Pension Fund reports to UFMCC Board of Pensions (USA only).

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Annually

1) Develops or works in conjunction with a budget committee to develop the proposed operating fund budget for submission to the Board and approval by the congregation. 2) Oversees preparation of financial reports for presentation at congregational meetings and forums. 3) In the event that payroll is handled within the church, the Treasurer shall ensure the following items are completed in a timely basis: a) Prepares year end W-2's for employees b) Prepares year end 1099's for miscellaneous income of anyone who received over $600 for providing services to the church c) Prepares 1099-I for individuals who received interest from the church on monies borrowed or held by the church. Note: This is uncommon. d) Prepares and files year end W3 and 1096. 4) Submits sales tax statement and/or pay applicable sales tax to the local jurisdiction, for any items sold during the year, in accordance with the jurisdiction’s time frames. 5) Ensures that annual giving statements are provided to all donors in accordance with the church’s FOP. 6) Ensure that bank signature cards are updated to be in alignment with current Board membership. 7) Arrange for audit or review of church financial records and practices. 8) Prepare financial statements (per instructions) for annual submission to MCC Headquarters or Regional Office. Regularly

1) In the event that payroll is handled within the church, the Treasurer shall ensure the following items are completed in a timely basis: a) Processing of payroll payments. b) Ensure that an IRS Form W-4 is on file for each employee for tax withholding purposes. 2) Conducts official business with the church’s financial institution(s). 3) Maintains a positive working relationship with the Bookkeeper, if applicable. 4) Provides the Board and the Congregation with periodic status reports on the operating fund’s status. Makes recommendation regarding options for addressing potential budget shortfalls and recommendations for addressing unexpected expenses.

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WEB REFERENCES & RESOURCES

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Websites MCC Treasurer Facebook Forum http://www.facebook.com/pages/MCC-Treasurers-Forum/111008302326252

MCC Local Church Resources http://mccchurch.org/resources/local-church-resources/

Background Checks https://www.criminalwatchdog.com/

References www.BusinessDictionary.com http://www.episcopalfonddulac.org http://www.freechurchaccounting.com

http://sermons.logos.com www.investopedia.com

Resources Episcopal Fond Du Lac http://www.episcopalfonddulac.org Free Church Accounting http://www.freechurchaccounting.com Sermon Logos http://sermons.logos.com

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FORMS

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Treasurer Job Description…………………………………………………………….. 011 Monthly Tithe Form ……………………………………………………………………

017

Board of Pensions Election Form ……………………………………………………

018

Board of Pensions Transmittal Form ……………………………………………......

019

Risk Management Audit ………………………………………………………………

020

Check Request Forms ………………………………………………………………… 026 Financial Operating Procedures ……………………………………………………… 028

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Church Treasurer Job Description (Sample 1 of 4)

Position: Church Treasurer. Purpose: Manage the financial activities of the congregation including income and revenue, expenses and disbursements, payroll, assets and investments. Selection: Elected annually by the Board and accountable to the Congregation Responsibilities and Duties General • Have a love of God and demonstrate a commitment to following the way of Christ. • Be knowledgeable or obtain knowledge about church finance and accountability. • Oversee and account for assets and liabilities, according to decisions of the congregation, Board and Denomination, in a reasonable, ethical and legal manner. Weekly/Semi-Monthly • Supervise collection, counting and deposit of contributions; ensuring at least two persons are present during collection and counting. • Supervise timely payment of ordinary operating expenditures, including payroll. For irregular or non-operating expenditures, obtain permission or approval of the appropriate authority. • Supervise and/or post transactions to the church ledger or provide for same. Monthly • Attend Board Meetings. • Reconcile bank account statements to church ledger. • Maintain records of all income, revenue, receipts, expenses, disbursements, assets and liabilities, especially documents related to loans, mortgages, investments and payroll taxes. • Provide financial reports to the Board and Denomination on operating funds, non-operating funds, and cash balances / investments. • Provide a summary of financial reports for the bulletin and/or newsletter. Quarterly • Provide a statement of giving to contributors following appropriate IRS regulations for tax deductibility. MCC Resource for Treasurers of Our Local Churches US Edition


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• Prepare and report tax information, meeting IRS requirements. • Supervise treasurers of all other congregational accounts, ensuring they follow appropriate procedures and safeguards. Annually • Arrange for an audit/review of financial records and processes, sending a copy of results to UFMCC. • Oversee the financial planning including preparation of the annual budget. •Ensure the preparation of financial sections of the Annual Report. • Ensure the preparation of the yearend tax information including 1099-Misc and W-2 forms. •Ensure processing of the commitments to the annual giving campaign or other campaigns of the congregation. • Provide a detailed financial report for all Congregational Meetings. • Report to the Denominational Pension Fund any changes in clergy compensation. The arrival or departure of clergy should also be reported

Adapted from the Episcopal Fond Du Lac http://www.episcopalfonddulac.org

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Church Treasurer Job Description (Sample 2 of 4)

Job Title: CHURCH TREASURER

General Qualifications: The Church Treasurer must be experienced in general office skills and demonstrate proficiency in general bookkeeping practices and be proficient in operating office and printing equipment of the Church. Principal Functions: The Church Treasurer is responsible to the pastor and the church for performing her/his duties related to the ministries of the Church. The Church Treasurer should radiate a personality that reflects Christ’s concern for people; demonstrate technical competencies required of the position; and be of such Christian maturity and stability to be able to maintain composure and confidentiality in all situations. S/He shall be responsible for managing her/his work efficiently, coordinating with the events of the church office; and maintaining a professional personal appearance while representing the Church. Working Relationships: The Church Treasurer shall be evaluated annually by the Board, with the assistance of the Pastor. It is understood that the Pastor and the Board have the authority (as authorized by the church) to request the Church Treasurer to perform various tasks related to her/his job as needed in the church ministries.

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Responsibilities: The Church Treasurer is responsible for the following: o Maintaining the church financial records; preparing and issuing checks for invoices and payroll in accordance with church policy; preparing periodic financial reports for the finance committee and church business meetings; making all deposits of all church tithes and offerings including all monies collected by the church staff for various church functions; maintaining church records of contributions (contribution records must be maintained with strict confidence); and keeping records of all expenses for all church sponsored trips (i.e., retreats, mission trips, camp, etc.). o Preparation of the financial portion of the annual church letter. o Maintaining all social security, medicare, and withholding records, and filing proper forms as prescribed by the Internal Revenue Service. o Performing other miscellaneous duties as are appropriate to the office of treasurer. The Church Treasurer shall be a member of the Board, the finance committee, and building committee on new construction. The staff of the Church is expected to be dedicated to the cause of Christ, to work with each other to promote a harmonious working environment, and to demonstrate concern for the needs and problems of the church body and the community.

Adapted from the Sermon Logos http://sermons.logos.com

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Church Treasurer Job Description (Sample 3 of 4)

Requirements: Shall be elected from the Board of Directors

Responsibilities:          

Process all checks, recording them in the appropriate accounting software program. Process all payroll checks, Tax Form 941’s, W-2’s and other government records required in a timely fashion. Insure that computer files are backed up weekly, at a minimum monthly, and the back-ups are stored off premises. Prepares the monthly and annual finance report. Supervise daily cash balances to insure sufficient funds are maintained. Maintains filing system and storage system for all financial records and banking records for easy retrieval. Prepares records for annual audit Maintain historical data, and establish a retention system for old financial records in accordance with government requirements (minimum of 5 years). Files all the required federal, state, and local tax forms. Assists in the preparation of the annual budget.

Adapted from the Free Church Accounting http://www.freechurchaccounting.com

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Church Treasurer Job Description (Sample 4 of 4)

Term of Position: The church treasurer is elected by the congregation. The term is three years coinciding with the fiscal year of church business, January 1 to December 31 Supervised by:

Board of Directors with congregational approval

Coordinates with: Pastor, Board of Directors and Staff Supervises:

All church finances—receipts and disbursements

Responsibilities: 1. To be accountable for all church finances 2. To keep complete records of receipts and expenditures 3. To provide an itemized report of funds at the annual church meeting 4. To provide for preparation of the budget through the Board 5. To present current financial report to the Board at their meetings 6. To present all financial reports to the Board upon request of the Moderator or to legal successor at expiration of term 7. To oversee collection of offering each Sunday

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Figure 1 2011 MCC Monthly Tithe Form English USD

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2011 MCC BOP Quarterly Payment Form 1

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2011 MCC BOP Transmittal Form 1

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RISK MANAGEMENT AUDIT 2012 UNITED STATES EDITION Employment (Paid and Volunteer) Yes

No

Don’t Know

Comment

Does each Clergyperson (paid or volunteer) who is doing an active, authorized and accountable ministry in your church have a current employment contract/covenant? Do you have a sexual harassment policy? Have background checks been done on all persons (paid or volunteer) who are involved in children, youth or counseling ministries? Do you have personnel policies concerning the handling of employee records that address the privacy issues involved? Do you have personnel policies approved by the Board to promptly and thoroughly investigate allegations of misconduct by employees? Do you adequately orient new employees/ volunteers concerning employer policies and procedures? What ongoing training is provided by church employees/volunteers to help them perform their duties in light of changing national and local laws? Are all employees and volunteers supervised to reduce their risk of negligence and misconduct? Does the church issue the appropriate Internal Revenue Service forms to all church staff and others who have been receiving financial compensation from the church during the previous year? MCC Resource for Treasurers of Our Local Churches US Edition


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Financial Management

Yes

No

Don’t Know

Comment

Are all signature authorities reviewed and updated at least annually and are all checks and other bank instructions signed by two signatories? Are at least two persons present during the counting of church offerings and are these persons rotated periodically? Are offerings promptly deposited in a church bank account? Are monthly bank statements reconciled with recorded income and expenses? Are monthly written financial reports provided promptly to Board members? Does the congregation approve your annual budget prior to the beginning of the new financial year? Does the Board keep to the budget approved by the congregation and is there a procedure in place for reporting exceptions? Do you comply with all donor restrictions on designated contributions?

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Insurance

Yes

No

Don’t Know

Comment

Do you provide Worker’s Compensation Insurance for all paid staff? Do you have general liability insurance with minimum coverage of $1 million and director’s insurance? Please submit a copy of the declaration page indicating the amounts. Do you annually review your insurance policies and other possible coverage and is this documented in your Board of Directors’ minutes? Do you have proper documentation of church assets? Do you contact your insurance agent as soon as a loss occurs or an allegation of negligence or misconduct is made? Do you comply with all conditions specified in your insurance policies? Who annually inspects your properties and grounds to identify risk areas that require correction?

-------

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Church Records

Yes

No

Don’t Know

Comment

Do you have a copy of your bylaws kept in a safe place outside of the church/pastor’s office? Is your church incorporated? Have you filed all annual reports required by the State? Have all changes to your bylaws been approved by the Network Elder? Do you have a records retention policy that specifies how long church records are to be kept? Are legal documents such as Board of Directors Meetings Minutes and Congregational Meeting Minutes kept readily available? Where do you maintain your important legal records such as deeds, rent agreements, etc.? Are Minutes and financial reports posted so that church members can view them?

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Copyright and Publications

Yes

No

Don’t Know

Comment

Do you have a license that allows you to reproduce music? (i.e., CCLI license) Do you include proper citations in your bulletin and other written materials when copyrighted materials are used? Do you have a license that allows you to legally copy and share commercial recordings of songs the choirs want to learn? (i.e. Rehearsal license from CCLI) Do you have a license that allows you to stream or podcast your live-recorded worship music on your church's website or other streaming service? ( i.e. CCLI Church Streaming and Podcast License). Do you have a license that allows you to uses movies for any ministry related activities? (i.e. CVLI Church Video License)

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Board of Directors

Yes

No

Don’t Know

Comment

Do you adequately train new Board members? When was the most recent Board training? Do you provide ongoing training of Board members, including officers?

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MCC CHECK REQUEST FORM (SAMPLE 1) Payable to: [Name of the Person or Vendor to be paid] Address: [Street or P.O. Box to which the check will be mailed ] Address 2: [if needed to complete the address] City/State/Zip: [City, State, Zip code of recipient] Telephone Number: [Vendor Phone Number]

Fax Number: [Vendor Fax Number]

Account Number: [The account number given to the church as a corporate identifier] Amount: [Amount due to the vendor] Due Date: {Date payment is due to the recipient}

Requested by: [Name of the person making the request] Date: [Today’s date] Contact Number: [ Phone number where requestor can be reached to answer questions] Reason for Request:[ Why was this purchase made]

Accounting/Budget Line Item Number: [The church’s Accounting or Budget number] Approved by: [ Name of Person Approving Payment] Declined due to: [If payment is declined, reason for the decline] Vendor Number: [ If you church assigns vendor number recorded it here for the person inputting the check information] Signature: [ Signature of the person approving the issuance of a check] Check Number: [ Record the check number here] Check Date: [ Record the date the check was issued]

Invoice(s) must accompany a completed check request form. MCC Resource for Treasurers of Our Local Churches US Edition


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MCC _________ - Check Request Form (Sample 2) Date Requested: Pay To The Order Of: In the Amount Of: For the Purpose Of: (Memo Line / Comment) Send Check To: OR Give Check To: Requested By: Approved By: Special Instructions:

General Ledger/Personnel: ___ 501300 Medical Insurance ___ 501400 Honorariums ___ 501650 Professional Dues & Subscriptions ___ 501700 Pension (UFMCC) ___ 501800 Workers Compensation Insurance General Ledger/Administration: ___ 503100 Pastor / Board Discretionary ___ 503200 Permits and Fees ___ 503300 Software Support (ACS) ___ 503400 Ministry Support ___ 503420 Office Supplies ___ 503430 Postage ___ 503440 Copier General Ledger/Ministry: ___ 507100 Communication ___ 507200 Congregational Care ___ 507300 Worship & Celebration ___ 507400 Children & Youth ___ 507500 Education and Enrichment ___ 507550 Teaching Church ___ 507600 Music ___ 507800 Social & Fellowship ___ 507900 Welcome Team

Restricted Funds: ___ 810100 Benevolence ___ 810200 Building ___ 810300 Christian Social Action ___ 810400 Conference ___ 810500 Pastor’s Education ___ 810600 Building Maintenance ___ 810700 Equipment ___ 811100 Tithe (UFMCC) Restricted Funds (DONOR): ___ 815000 Donor Restricted Fund ___ 816000 DR Ground Spring Obligated Funds: ___ 820100 Love Offering ___ 820200 Retreat ___ 820300 Flowers ___ 820400 Special Events ___ 820401 Education Events ___ 820402 Musical Concerts / Events

OTHER (please specify ___________________________________________________________________________ MCC Resource for Treasurers of Our Local Churches US Edition


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FINANCIAL OPERATING PROCEDURES (SAMPLE) Church finances shall be under the ultimate direction of the congregation. The Finance Committee shall make monthly reports to the church. This Church shall be wholly supported by the voluntary tithes and offerings of members and friends of the church. This Church shall operate with a unified budget with one treasury. All funds received for any and all purposes must be accounted for by the Finance Committee. Financial statements will be made available to members each month. The fiscal year shall begin on January 1 and end on December 31. The Finance Committee shall begin the budget making process, drawing on the input of all the ministries and teams of the church. The Personnel Committee shall make recommendations concerning paid employees of the church. The Finance Committee shall present the budget to the Deacons and then to the church. Copies of the proposed budget shall be distributed to the church members at least one week prior to its adoption during the December business meeting. Once an expenditure is approved by inclusion into the church budget, no other approval is needed – unless due to the church being in a tight economy, the Finance Committee shall announce a need for prior approval of expenses. Designated funds must be approved by the church. No one may establish a "designated fund" simply by the giving. Requests for creating a new fund must first be submitted to the Finance Committee. If the proffered gift is outside the scope of the current budget or ministry of the church, they shall bring recommendations concerning the offer to the congregation for approval. No tangible property may be received by the church without first being accepted by the Finance Committee. Separate persons shall be responsible for having custody of church offerings. These persons will consist of money counters and a depositor. A minimum of three church members is required to count church offerings at any time. There will be a requirement of two signatories on all cheques. There will be no staff members participating in the collecting, counting or depositing of church offerings. All requests for reimbursements will be submitted on a "Request for Sundry Disbursement" form which will be submitted to the treasurer with the proper signature approvals. MCC Resource for Treasurers of Our Local Churches US Edition


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FINANCIAL OPERATING PROCEDURES (SAMPLE 2) A. All financial accounts of _________ MCC will have al l members of the Board of Directors as signatories. In the event that the Treasurer performs the accounting functions of the church, the Treasurer shall not be a signatory on the account. B. The counting of all offerings will be done by two persons, as directed by the Board of Directors, and the offerings shall be deposited into the appropriate church bank account. C. Cash offerings shall not be used to cash personal cheques. D. All requests for funding outside of the budget with the exception of designated gifts, shall be in writing and shall include a written detailed estimate. The funding is subject to Board approval and the Board shall determine the source account for the funding. E. An audit of the church’s finances shall be accomplished annually. Such an audit shall be conducted by an independent third party selected by the Board of Directors. F. A budget shall be prepared by the Finance Committee and presented to the Board of Directors at a regular Congregational Meeting annually and shall be approved by a simple majority. The budget may be changed as required at any Congregational Meeting.

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FINANCIAL OPERATING PROCEDURES (SAMPLE 3) 1. Authorization for signatures necessary on contracts, cheques, and orders for payment, receipt or deposit or withdrawal of money, and access to securities of ___ MCC shall be provided by resolution of the Board. 2. Any individual authorized to purchase goods and/or services for the ___ MCC shall follow the procedures set forth in these policies and the Internal Control Procedures Manual. 3. The finance committee shall be responsible for reviewing and recommending an annual operating and a capital budget to the Board for review and sending to the Congregational Meeting. 4. The Congregational shall be responsible for approving the annual operating and capital budgets. 5. No expense shall be incurred in excess of the total budgetary appropriations without prior approval of the Board.

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If you need assistance contact, Vickey Gibbs at VickeyGibbs@MCCchurch.net or call 281-940-1558.

MCC Resource for Treasurers of Our Local Churches US Edition


1_Ministry of the Church Treasurer_US