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Finance Committee

Purpose: To advise and support the Treasurer and to assist the Board in its oversight of the financial operations of the Fellowship.

Membership: The committee shall consist of a chairperson appointed in a manner consistent with Bylaws Articles VII, Section 1(a) and Article VIII, Section1(b), and at least three additional members selected by the chairperson. The Treasurer is an ex officio member, with vote, and may serve as the Board liaison to the committee.

Responsibilities:

  • Prepare the annual operating budget in accord with the Bylaws (Article V).
  • Advise and support the Treasurer in his/her duties.
  • Provide information, support, and recommendations to committees for budget planning and expenditures for Fellowship programs.
  • Arrange for an annual review of the financial records by a qualified person approved by the Board.
  • Manage Fellowship insurance for all risks including property, liability, professional, and financial. Manage loans to the Fellowship.
  • Oversee and make policy recommendations to the Board regarding stocks and bonds and other investments, other than funds managed by the Endowment Committee.
  • Regularly review the income and financial condition of the Fellowship, including monthly review of the financial statements presented by the Treasurer and report to the Board as needed.
  • As necessary, make recommendations for mid-year budget corrections.
  • Review and make recommendations to the Board regarding unbudgeted expenditure requests throughout the year.
  • Review and update the Financial Policies and Procedures section of the Fellowship's operations manual.
  • Fundraising oversight is currently the responsibility of the Finance Committee.


Financial Policies and Procedures

The Board of Directors of QUUF shall establish, maintain, and communicate a culture of fiscal responsibility and accountability in all areas of Fellowship finances. To achieve this goal, the following financial policies and procedures are in effect.

1. Assistant Treasurers, Financial Staff, and Financial Secretaries

The board shall hire financial staff and appoint assistant treasurers as necessary to assist the Treasurer and provide sufficient coverage for handling Fellowship financial matters according to approved policies and procedures.

The Finance Committee shall appoint financial secretaries who are authorized to count and record the Sunday collection plates, according to approved procedures.

2. Sunday Collections shall be handled as follows:

Two ushers, appointed by the Sunday Services Committee, receive the offering at each service. At each service, the ushers place the collection plate contents in envelopes, sign the envelopes, and deposit them through the slot into the office safe. After the second service, two financial secretaries retrieve the collection plate contents from the envelopes of both services in the safe and record the contents as follows:--count and record the cash on the financial receipts form

--run a tape or record the checks on the financial receipts form

--both financial secretaries sign and date the financial receipts form

--place the cash, the checks, and the completed financial receipts form in the designated envelope(s), and place the envelope(s) in the office safe.

At least weekly, the assistant treasurer (accounts payable clerk) will verify, deposit and record the receipts in the safe. The assistant treasurer produces a deposit report for the treasurer. A separate assistant treasurer books the deposit to the general ledger.

3. Funds received at times other than Sunday Service:

All cash received through the mail, the office, or from events held at the Fellowship (other than the Sunday Service collection plates) should be placed in an envelope, with a notation as to the origin of the funds, and the envelope placed in the safe. Checks received at times other than through the collection plate should be placed directly in the safe. The assistant treasurer or financial secretaries shall count and record these funds along with the weekly Sunday Services collection.

Note: At no time should checks or cash be placed directly in the Treasurers box or handed directly to the Treasurer (s) for deposit. All funds received should be placed in the safe using the procedure described above.

4. Disbursement of Funds

 All funds disbursed shall have appropriate documentation and approval.

Persons requiring reimbursement for fellowship related expenses shall complete an expense reimbursement form that includes the signature of the board member or committee chairperson responsible for authorizing the expenditure. Completed expense reimbursement forms should be submitted to the assistant treasurer (accounts payable clerk) for processing. Email communications and authorized expense approvals may be accepted as authorization for expenditures.

All disbursements over $2,500 for the assistant treasurer and $10,000 for the treasurer shall require two signatures on the check, unless other arrangements have been authorized. Should either the assistant treasurers or treasurer or their family members require reimbursement, the expense reimbursement form and check issued requires an additional authorized signature.

5. Budget Management

Money expended for annual operating expenses may be expended only during the budget year. Money not spent in a particular budget category may not be carried over from one budget year to the next unless authorized in accordance with the QUUF bylaws. If so authorized, budget revenue for the carryover will be reflected in the budget as earmarked for a specific purpose and will be reflected as same on the balance sheet.

Expenditures are to be charged first to the appropriate budget account. If a budget line item is depleted and unallocated reserves exist, any remaining approved expenditure may be charged, with Finance committee recommendation and Board approval, to the available reserves.

6. Gift Disbursements
Names and addresses of recipients who are beneficiaries of cash, coupons, or store certificates, (for example disbursements from the ministerial discretionary funds), must be documented and recorded on a expense reimbursement form by the appropriate committee or individual distributing the gifts. In lieu of a receipt, the documentation should include:

•1. the date and amount of the gift,

•2. the committee member or staff person approving the gift, and

•3. the recipient's name and address. (Confidentiality maintained as needed).

7. Bank and Investment account reconciliations and security

a. Reconciliation of all bank and investment accounts shall be performed regularly. To strengthen internal control, the bank and investment account reconciliations shall be reviewed by someone other than the treasurer for that account. This review shall be performed by a member of the Finance Committee or designee who does not have signing authority on the account and does not have transaction posting authority on the church accounting software system.

b. Bank and investment account statements for all Fellowship funds shall be mailed from the bank/investment firm directly to the Fellowship address and placed in the mailbox of the person performing the account reconciliation. Bank and investment account statements and records shall be stored in a locked file cabinet at the Fellowship building or in a secure off-site storage location. Regular system back-ups of the church financial records shall be made and stored off-site.

c. Passwords for both the Fellowship accounting software system access and electronic banking/investment transactions shall be secured and changed as necessary to maintain the integrity of the security system.

d. Electronic funds transfers are to be made only between QUUF titled accounts.

8. Petty Cash

Petty cash shall be maintained as necessary for the convenience of the Fellowship staff in handling small Fellowship expenses. Petty cash custodians shall be trained in maintaining petty cash records. Petty cash reimbursement and reconciliation forms shall be submitted to the assistant treasurer monthly to record expenses and replenish petty cash. Petty cash shall be properly secured in the church office.

9. Stocks

Stocks received as payment of an annual pledge shall be sold upon receipt by the Treasurer. The value of the stock on the date received is the amount to be credited to the donor's pledge account. Any gain or loss realized between the date received and the date sold shall be posted to the appropriate fund. Stocks received for and dedicated to a specific purpose shall be sold in a timely manner to satisfy the desires of the donor. The decision to hold or to sell stocks received for long-term programs shall be the responsibility of the Endowment Committee.

10. Fundraising

In order to ensure Fellowship fundraising priorities are maintained, all requests for gifts, special collections, fund raisers, etc must be approved by the Fundraising or other appropriate committee.

11. Cash Management

The Treasurer shall maintain adequate funds in all Fellowship checking accounts to pay anticipated bills. Excess cash shall be invested prudently.

12. Definitions of Contingency Expense and Reserve Funds

Contingency Expense

Contingency Expense is a budget line item intended to meet expenses that were unforeseen at the time of budget preparation. It is funded each year in the operating budget and if the budgeted amount in this line item is not used by the end of the fiscal year, it is not carried to the following year and is absorbed into the general fund for the current fiscal year. Expenditures from this line item must be used for operations, not capital expenses. The Board of Trustees has discretion over the allocation of money from this fund, but the Board should keep the Finance Committee apprised of contingency expenditures. Reallocation of funds at the end of the fiscal year should be made by the Board of Trustees, based on recommendations from the Finance Committee.

Maintenance Reserves

The maintenance reserve fund is a separate accounting fund and is used for general maintenance, repairs and replacements that are over and above what is covered by the budget. The fund accumulates as money from the operating budget is allocated to it. The reserve fund balance rolls forward each fiscal year. The Buildings and Grounds Committee makes recommendations about spending from this reserve to the Finance Committee. The Finance Committee after discussion makes a recommendation to the Board. Expenditures require Board approval.

Operating Reserves

The operating reserve fund is a separate accounting fund and is not designated or reserved for a specific purpose, but is intended to cover unexpected or unanticipated expenses that are over and above what is in the budget or to cover income shortfalls. The fund accumulates as money from the operating budget is allocated to it. The operating reserve fund balance rolls forward each fiscal year. Requests to use this fund should be directed to the Finance Committee, who will discuss the request and make a recommendation to the Board. Expenditures require Board approval, but the Board normally will not spend money from this fund without a recommendation from the Finance Committee.


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