This document was created to present a general overview of the general financial policies and procedures of Cross of Christ Community Church. There are various functions of Cross of Christ Community Church (COCCC) that have financial implications including offerings, fundraisers, accounts, disbursements, etc. This overview provides a basis on which the leadership of COCCC can build a sound financial structure, and an understanding of general procedures and methods to be used in regards to this structure.
I. Plan of Organization
To achieve control over financial matters as well as actual operations, planning must begin at the top of the organization. The highest body of authority in the organizational structure and government of COCCC is the Elder Board. The elders are responsible for the oversight and management of the church’s resources. To accomplish this goal, several functions or positions are necessary. The elders are responsible for appointing such positions as they deem necessary to meet the financial needs of the church, but at the minimum these should include a treasurer.
It is the treasurer’s duty to keep accurate records of all receipts, accounts and disbursements of monies. The treasurer shall deposit all monies of the church in a duly authorized bank in the name of the church. He/she shall disburse funds as authorized by the elders.
He/she shall provide financial statements in all finance committee meetings or as otherwise requested by the elders, as well as reports to the members.
The budget committee shall be appointed by decision of the Elder Board and shall consist of no less than three members, with one who shall serve as the chairperson. Its primary function is to coordinate the preparation and implementation of the annual budget. The committee must obtain from the pastors, staff and departmental leaders their estimates of financial needs for the coming year. The committee is responsible for making sure that the budget is realistic and reachable. The committee is also responsible for keeping the church on track financially according to the budget, working with the treasurer seeing that expenditures are charged to the proper budget categories and accounts. The treasurer should serve on the budget committee.
Trustees are responsible for maintenance of buildings and grounds as well as of furniture and equipment. Those selected must be knowledgeable and capable in the arena of purchasing and maintaining buildings, property and equipment.
Trustees are to sign documents as authorized by the Elder Board. This shall include, but not be limited to, deeds of trust, promissory notes and other legal documents. It shall be the duty of the trustees to hold in trust all properties or portions of property deeded to the Cross of Christ Community Church. They shall assure that all deeds, legal certificates and records are deposited in a place for safe keeping.
From time to time the Elder Board may find it beneficial to appoint a committee for the purpose of hiring new staff members or recommending staff salaries and benefits. In addition, the committee should see that all employee policies for staff members are given to each employee in writing.
II. Business Functions
The primary business functions that need to be recognized are discussed in the following topics:A. Budget Preparation
As a church, COCCC has definite goals; therefore, the church needs a plan to help prepare for the financing of such goals. In the process of preparing a budget, the church is forced to define certain categories and classifications for expenditures. Projected plans and programs must be converted into estimated dollar amounts. The same categories used in preparing the budget will also serve to report on the utilization of resources/monies. Actual results can be compared with budget estimates for each category, providing a means for evaluating performance throughout the year.1. Budgeting Philosophy
Several statements are presented here to summarize the aspects of budgeting that are of most importance to the church:
The fiscal year for COCCC shall be the calendar year, beginning on the first day of January and ending the last day of December. The following shall serve as the processes and time tables for developing the annual budget:
Cash is received into the church at a number of different times and from a number of different sources, such as the following:
As cash is received, regardless of the timing or source, it must be carefully protected and accounted for. Essential steps in controlling and recording cash receipts include the following:
The following steps shall serve as the procedure for counting cash receipts:
the receipts. The leader shall sign and date the tally sheet. Two copies of the tally sheet shall be made, one shall be provided to the treasurer along with the receipts, the other shall be given to the church secretary.
In general, the elders shall adopt a policy that will make it as simple as possible to make disbursements for normal, recurring items and yet retain control over nonrecurring items, whether they are budgeted or non-budgeted items.
The following shall be the policy and procedure of disbursements for expenditures:
An entire accounting cycle is one year, known as the fiscal year. The fiscal year for COCCC shall begin on January 1st and end on December 31st of each year. The accounting cycle begins with transactions, ie, cash receipts and payments of cash, and ends with the preparation of reports for the church membership. The fiscal year is made up of 12 monthly cycles. Each monthly cycle begins with the first transaction of the month and ends with the last transaction of the month.
The following shall be the accounting procedure:
At the end of each monthly cycle the bank account shall be reconciled. The reconciliation is necessary not only to determine possible bank errors, but also to detect possible errors in recording bank deposits and checks.
Steps in the reconciliation procedure shall be as follows:
The information gathered above, along with any other needed data, shall then be entered on a reconciliation form similar to the following:
Sample Reconciliation Form[[PASTING TABLES IS NOT SUPPORTED]]
All requisitions for special events or fundraisers should be submitted 2 months prior to proposed date.
All requisitions for any items above monthly budget should be submitted 1 month prior.