Information Management for Financial Institutions Experiences & Best Practices.
Financial Best Practices
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Transcript of Financial Best Practices
Financial Best PracticesRev. Dr. Todd Adams,
Associate General Minister and Vice President
Purpose Today• Talk about the special relationship of Disciples Women
and the church•Address some areas of concern • Establish a target for minimizing risk and preparing for
greater scrutiny of religious 501c3 organizations.
Relationship• Leadership development•Advocates for generosity •An vital ministry of the church in all expressions •Ministries that are covered by the denominations
group exemption
Concerns •Accounts opened under the region or congregation’s
EIN but not reported through the congregation• Expense and reimbursement policies that don’t meet
IRS or International Accounting standards •Creating potential tax liability •Potential for fraud
Basics of Best Practices • Trust • Assured reliance on the character, ability, strength, or
truth of someone or something • b : one in which confidence is placed
Trust…• Trust in people and the systems that protect people • Transactions•Decision making•Paperwork processes•Human contact with the system•Opportunity to catch and correct errors
Accountability Accountability: • An obligation or willingness to accept responsibility; • The state of being accountable;
Accountable: • Something one can measure and explain (process, documents
etc.)
Key Phrase for Today
Trust is not an internal control
Basic Principles of Giving•People give to people, not to organizations. • They give to support a mission. • They give to organizations where there are high levels
of trust and accountability.
Key Players•Protect our leaders •Officers •Protect our staff •Protect our members – donors
Role of the Officers•Monitor receipts and expenses. •Written budget •Report gifts and expenses to the congregation or the
region•Receipting gifts properly •Noting the difference between regional /
congregational
Basic Internal Controls•Gifts are always in dual control• Counters collect, escort and process contributions
• Standardized form and process • Two counters• Use a written form and sign it
Basic Rules for Handling Money•Money is counted at the event by two people • Deposit is made immediately or cash converted to a
money order• Forms are filled out, signed and a copy given to the
president
Gift Acknowledgment •Gifts need to be receipted in the name of the church
or reported to the Financial Secretary of the church• Tax statement • No goods or services were received in exchange for the
contributions
Church Treasurer’s Handbook• Excellent resource for polices, guidelines,
compensation, benefits, internal controls etc. •Maintained by OGMP Treasury Services, Pension
Fund, Christian Church Foundation and Disciples Church Extension Fund
Reviewing Financials • Protecting the people handling the money• Reviews expenses and reimbursements• Recommends additional policies and procedures • Provides donors with confidence in the policies and
procedures
Internal Review•1 month of deposits•1 month of checks•1 month of bank statements •A group of 2-3•Best practice would be to run everything through the
church as designated funds
Expenses
Expense and Reimbursement of Expenses for Employees and Volunteers•Word Problem• Accountable Expense and reimbursement
policy• Review of Expenses
What Are Appropriate Expenses? • Travel:• IRS guidelines • Employee rate .56•Charitable / volunteer rate .14•Written policy to reimburse actual
expenses •General Assembly expenses •Quadrennial Expenses
What Are Appropriate Expenses? •Meals • IRS per diem for travel•What constitute “staff”
•Cash•Receipt requirements• Lost receipt documentation?
• Travel Guidelines in writing?
Guidelines• Transparency and accountability •Written plan • Sunshine Test • Is it accountable or it is based on trust?
Discussion•How can we share this out with other leaders within
Disciples Women?
•What are the challenges you have faced that you would like to discuss?