Expenditures

1. A staff person has the responsibility to monitor and regulate the spending of funds allocated to that work area in the current Operating Budget.  Bills to be paid may be submitted to the Finance Administrator for payment, along with the work area to which the item should be charged, on a completed Purchase Voucher Request for Payment Form. 
2. All requests for payment must be approved and signed by the staff person responsible for that work area. If a purchase exceeds an amount of $500.00, a Purchase Order must be obtained from the Finance Administrator.  Once purchase has been made a Purchase Voucher will be submitted for reimbursement. 
3. Personal expenditures will be promptly reimbursed by attaching original receipts to the back of the properly completed and approved Purchase Voucher. 
4. Staff members and volunteers are expected to utilize the church's tax exempt status for expenses that will be incurred and/or reimbursed by the church.  Sales tax will not be reimbursed on items purchased for the church.
5. Requests for payments must be submitted by 12 noon on Wednesday.  Checks are written on Wednesday afternoons, signed on Wednesday night and mailed on Thursday.
6. Items will be charged to a work area up to the amount budgeted.  Keeping a record of expenditures for the year will aid in setting the new budget for the following year.  A computer printout of the work area (to date) will be provided for the staff person monthly and at budget preparation time.  The staff person will be requested to submit a next-year budget request sometime in September of the current year.
7. Release of funds from a designated or restricted account requires approval of the appropriate committee and then the Finance Committee.  Transfer of funds from designated, up to the amount expensed, must be reviewed by the appropriate work area and Finance Committee quarterly before transferring funds to the General Fund or to Savings.
8. “Wish List” items are items that are desired by the church as “wish” items but not immediately necessary.  These items are to be approved by responsible committee and then the Finance Committee. 
9. Purchased items may not be delivered to the church property or taken possession of by anyone until it is either paid for in full or a contract has been signed for the item.

Deposits

1. If a work area has money to be deposited, complete a Deposit envelope and turn it in to the Finance Administrator or Church Administrator within one to two business days.  Indicate the area to be credited, what the deposits are for, the amount and who is depositing it. 

Ministry Funding Policy

1. Any church related ministry funding activity shall be approved by the Finance Committee and then by the Administration Board. All ministry funding events must be approved by both committees before they can be presented to the church membership and/or publicized in the newspaper, bulletin, flyers, etc.
2. A church related ministry-funding activity is defined as any ministry funding activity that uses either the church name or the church property.
3. Any conflict of interest or appearance of conflict of interest should be avoided.
4. Any ministry funding activity will be evaluated as to its appropriateness as a church or church-related activity.
5. All net proceeds must be directed to the church or church-related activity.

Scheduling Money Making Events

1. All money-making events must be approved by Administration Board and the Finance Committee before they can be publicized or calendared on the church calendar.  No money-making event should be publicized in any way without the approval of these two groups.  
2. A staff person is responsible for seeing that those planning money-making events follow church policy.
3. Finance Committee approves appropriateness of a ministry funding event and certifies that all the money collected for the event goes to a Wylie United Methodist Church sponsored activity.

State Sales Tax

1. State sales tax must be paid by a nonprofit organization if sales are made to the general public.  
2. If sales are only to church members, sales tax does not apply.  It is the responsibility of the sponsoring group to handle any state sales tax responsibility and to notify the Finance Administrator of such action.
3. Sales tax will not be reimbursed on items purchased for the church.  It is the responsibility of the person making the purchase to use a tax exempt form for the purchase.

Collection of Offering

1. At each worship service when the collection plate is returned to the back of the worship center, a member of the Finance Committee will place the money in a zipper bag that is marked for the appropriate service.  He/she will ask an usher or other church member to accompany him/her to the office of the Finance Administrator where the bag will be placed in the designated place for counting.
2. Each month two members of the Finance Committee will be assigned to count the money from each worship service.  Both members will decide on a time to meet to count the money.  Both members are to be present at all times during the counting.  Counting by one individual is not permitted for security reasons.
3. The collection for each service will be totaled and a finance sheet and deposit slip will be filled out.  Copies of all checks and deposit slips will be made by the counters and left in the financial administrator’s office along with the finance sheet for the church’s records.  The money and deposit slip will be placed in the bank bag and locked for transportation to the night deposit at the appropriate bank.
4. One member will take the money to the bank and deposit in the night depository

Yearly Budget

1.  In the month of July, the Finance committee will contact the Stewardship committee to begin the process of the stewardship campaign.  In the second week of October pledge cards will be sent out to the congregation.  All data from the different committees will be compiled and a budget set and sent to the Administrative Board.

Annual Financial Audit

In the first quarter of each calendar year a church audit will be preformed.  The audit must be done by a Certified Public Accountant or a Certified Public Accountant firm in every year that is divisible by the number 4.  All other years the audit may be done in-house.

Bank Accounts

1. The church will establish and maintain bank accounts that consist of one account for General Fund and a second account for Restricted and Designated funds.  Funds from the General Fund can be used to fund Restricted or Designated items, however, funds from the Restricted and Designated account MAY NOT be used for General Fund expenditures.
1. Monies that are designated for a specific need by the giver shall be honored and never spent for any other reason unless approved by the donor.
2. If a Designated fund is in the general budget, designated funds will be used first.
3. If a giver gives to a budgeted area earmarking that ministry, those funds will offset the associated ministry expense line item on the General fund budget.  Hence the budget amount for that ministry remains the same as originally budgeted, not increased by the amount given.
4. Monies given to the Capital Improvement Fund or the Building Fund will be applied to the loan principle if it is so designated.  If undesignated, the amount may be applied to the principle or interest or both as determined by the Finance Committee.
5. All funds for Designated and Restricted account received after January 1, 2007 will be deposited into the Designated and Restricted bank account.
6. Checks that are received by the church that are of a “split” nature are to be deposited into the General Fund account and a transfer of funds are to be made from the General Fund into the proper account as designated by the giver’s check.
2. A bank account will be established and maintained for the Learning Academy Preschool (LAP).
1. Lap will maintain their accounting and bookkeeping processes with two signatures required for checks.  LAP signers should both be members of the LAP Board of Directors, but not necessarily the LAP treasurer.
2. The LAP director will be a check signer only as a back-up.
3. LAP and WUMC will establish an invoice/payment process to cover LAP financial responsibilities to the church.
3. At the beginning of each calendar year all church staff members and committee chairman will sign a copy of the church Finance Policy.  These copies are to remain in the office of the Finance Administrator.  If there is a change of any of these personnel, the new person will be required to read and sign a copy also.

Church Credit Cards

The church will maintain three (3) credit cards that are contained in one church account.  This account will be paid by the Church Administrator in full on a monthly basis.  Issuance and credit ceiling for each card are as follows:

            a.  Chairman of Trustees                              Limit of $1000.00

            b.  Youth Director                                          Limit of $1500.00

All credit cards will be kept by the Church Financial Administrator until needed at which time they may be checked-out for usage.  At the end of the usage period the credit cards will be returned to the Financial Administrator.

ADDENDUM

Agreement Between LAP and WUMC

March 8, 2007

This is to establish a definable financial relationship between Wylie United Methodist Church (WUMC) and the Learning Academy Preschool (LAP) program.  The people involved in these matters will continue to change from year to year so it is important that guidelines are in place and that they are easy to follow for both parties.  Specific details will change on both sides so the financial formula must remain as simple as possible to insure long lasting integrity.

It is established that The LAP Board of Directors will pay a flat 10% of the total budgeted income.  This will be based on the total possible spots for children in the program and assumes 100% capacity at all times.  The reality of the LAP budget is that close to 10% of the potential paid tuition is a combination of scholarship offered by the program or unoccupied student spots, but in either case, not real dollars.  As this amount varies from year to year and month to month, LAP feels the flat 10% is an extreme simplification and will always fall to the church’s advantage.

There will be no other fees or assessments toward the LAP program.  The 10% payment will cover all fees which may or may not have been itemized prior to this agreement including but not limited to; trash removal, cleaning services, paper goods, Xerox paper and machine usage, utilities, and grounds maintenance.  Any goods or services charged by LAP through the church will be the responsibility of LAP and they are to reimburse the church in a timely manner.

The LAP Board of Directors will be in total control of the remaining 90% of the LAP budget.  The LAP Board will supply WUMC with an annual budget so that WUMC will know the 10% payment amount.  The LAP Board has been designated as the governing and protective body of the LAP program and as such has sole responsibility of appropriate execution of the LAP budget.  The LAP Board will supply reports as needed for church audits.

Chairman Finance Committee  _______________________________  

 Finance Administrator  _____________________________________ 

Chairman Administrative Board ______________________________

Questions about the Finance Policy? Send an email to: wumc_marcom@yahoo.com