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Guiding Financial Principles & Policies For Local Churches

Written by Peter Mukwena. Posted in FOG Procedures

 

84 Hogglane, Grays, Essex RM17 5QT

 www.africanrevival.com

email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Telefax: 01375385125

Guiding Financial Principles & Policies For  Local Churches

Preamble

The following written financial policies and principles govern the financial matters of Family of God Churches in United Kingdom (FOG-UK).  Although many of these guidelines had been informally in place for several years, it was felt that it was important for new members and attendees to understand them and that they provide a solid foundation that guides our churches’ attitudes and actions in financial matters.

  1. PRIMARY SOURCE OF CHURCH INCOME  

FOG-UK, as all our churches internationally, is dependent on the regular and generous unsolicited donations of the members. Such donations support the church's ministry, missions, building activities and benevolence needs. 

  1. MISSIONS’ GIVING

All the FOG-UK sub-assembliescommit a minimum of 10% of their monthly income to international mission fields.  The church has a Missions’ Commission and formal guidelines are in place to review all mission requests. FOG-UK will accept designated missions’ gifts from individuals in the church that can be passed on to any Christian and other  not-for-profit organizations.

  1. BIBLICAL TEACHING ON FINANCES

The Church will teach its members Biblical principles on finances and supporting of the work of the ministry through Bible studies, seminars, sermons, etc.. The teachings are designed to help people become financially free in their lives and appreciate the place they can play in supporting the Ministry’s work.

  1. FUNDRAISING EVENTS

While Family of God Churches are primarily dependent on the generous donations from the church members, the Church may engage in fundraising activities such as Plate clubs, charity sales, craft sales, candy sales, product sales, pledges and similar to augment the church's financial resources.

  1. ACCOUNTABILITY AND REPORTS

Family of God Churches will occasional reports comprising financial statements, mission and benevolence activities and other supplementary information to members of the FOG-UK Finance Committee and Board of Trustees, as well as key contributors.Such reports are also available for perusal at the church offices by any other interested church member. It is the Church’s policy to maintain transparency in its financial affairs.    

  1. MODES OF GIVING  

Church members either bring their contributions to the church services or church offices in special envelopes designed for this purpose or can deposit checks or effect electronic funds transfers directly into the church’s bank account. Where a direct deposit or electronic funds transfer is made, the depositor will provide evidence of such transaction to the church office. Gifts and donations are also accepted in the form of stock transfers, investments and other assets or gifts in kind. The church will abide by all IRS donation regulations.

  1. OVERSIGHT BY THE BOARD OF TRUTEES AND FINANCECOMMITTEE

Oversight of the FOG-UK financial affairs is provided by the Finance Committee and ultimately the Worldwide Family of God Churches Board of Trustees to which the Finance Committee is responsible. The Committee shall consist of appointed members who are professionals and chaired by a person with a good financial appreciation. The pastors of the assemblies within FOG-UK and the Presiding Bishop will be ex officio members of this Committee. The Committee and Board of Trustees have the responsibility of ensuring that church's financial policies and procedures are fully implemented and regularly observed.

  1. BENEVOLENCE GIVING  

FOG-UK will have a benevolence program that will help people that are attending the church. Help will come in the following ways (depending on available resources, finances and financial counsellors):

  • One-time financial assistance, of not more than one hundred pounds, based on assessed needs by the Local Pastor.
  • Partial assistance with short-term food needs.
  • Financial aid towards  studies. 
  • Payment towards vocational and career testing and guidance.

Possible greater assistance (dependent on needs assessment, financial counselling, and participation in financial teaching sessions run by the Church).

FOG-UK will from time to time conduct food/clothes drives for people in our community who need help. Normally, this food will be channelled through an existing ministry that works with the poor and needy in our community.

  1. BUILDING PROJECTS & CAPITAL EXPENDITURE

FOG-UK will seek to meet its larger financial needs (building projects, equipment, vehicles, land, etc.) through communicating the plans and needs to members and other individuals through letters, road shows, campaigns, visits, etc.. FOG-UK will accept gifts designated for approved building projects or major expenditures. It is not the Church’s policy to use bank mortgages or bonds to meet its capital needs. With board approval, Family of God has accepted financial help of some no-interest loans to assist with necessary building construction and renovation projects.

10.  FINANCIAL RECORDS AND REPORTS

On an annual basis, the Family of God Churches will communicate, in summary form, its general income and expenditures at an Annual General Meeting open to any interested church member. Detailed financial statements will be available at the end of the meeting to any member who would like a copy. Any individual who would like to review the church's financial records or would like to ask detailed financial questions is always welcome to schedule an appointment with the Finance Committee Chairman, Secretary or the Presiding Bishop at any time. 

Initially adopted at  the WWWFOGC Board of Trustees meeting held on 

18th of March 2005

APPENDIX

Financial internal controls and procedures include:

OFFERINGS/COLLECTIONS AND COUNTING TEAM:

    The following policies and procedures are to be observed regarding the counting of offerings and collections:

  •      All Sunday service collections are to counted and the bank deposit must be made no later than the following Monday (except when Monday is a holiday, in which case the deposit shall be made on the next working day thereafter).
  •      There should be a minimum of three unrelated persons counting cash; 
  •      Ideally, there should be more than one Counting team and the teams should rotate on a bi-monthly basis.
  •      Monies collected during the week should either be left at the office or placed within the Drop Box, or Drop Safe.
  •      It is against our policy for monies collected during the week to remain at someone's home past the following Sunday.

   Steps and procedures by one independent person in carrying out their financial tasks becomes a check and balance on what another independent person does.

RECEIPTS:

  •    Money is handled by at least two people;
  •    Where possible, cash receipts are verifiable by other records;
  •    Documentation is originated by the first person handling cash
  •    Staff receiving cash staff has limited access to other accounting records such as those to do with Accounts Receivables;
  •    Online receipts for donations and events are encouraged;  
  • All cash receipts are promptly deposited intact.

CASH/CHECK PAY OUTS:

  •   Cash pay-outs will be limited to cases that are really warranted. Otherwise, payments will normally be effected by check;
  •  Pre-numbered checks will be used;
  •   Staff who produce and process checks have limited access to other accounting records;
  •    Invoices/check requests are authorized by two approved signatories who are separate from the person originating the request;
  •    The payroll is authorized by another person other than the one processing it and counter-signed by the Presiding Bishop;
  •    Invoices are balanced to vendor's statements;
  •    Invoices/check requests accompany checks to be signed;
  •   Two signatures of unrelated parties on checks are required -  after they have been written;
  •    No pre-signing of checks is allowed;
  • Online payments of net pay and certain repetitive bills is encouraged; with check signatory review and clearance thereafter;
  • A petty cash float of a set amount will be maintained on an imprest system to meet urgent and essential cash payments; 
  • All such petty cash will be kept secure in an office safe. The person with custody of the key will be separate from the one effecting the payments. A member of the Finance Committee or other senior designated member can carry out spot checks at any time.

GENERAL INTERNAL CONTROL PROCEDURES:

  •    At the end of each financial year each assembly will produce a budget for the following year. The budgets will be considered and consolidated by the Finance Committee;
  •  There is regular comparison of  GP Fund Actual expenditure to Budget expenditure;
  • Two unrelated people sign authorized  Journal Voucher  forms;
  • Monthly bank reconciliation –This will reviewed by a different person to the one compiling the bank reconciliation;
  •     Monthly reconciliation of Plastic purchases on the books to their statement;
  •     Periodic historical statements (at least annually) are sent out to key donors;
  •     Make proper use of the Imprest "Petty Cash/Now Bank Account" system;
  •     Equipment/furniture are physically inventoried and balanced to a control account on a periodic basis. A fixed assets register will be maintained.
  •     Important records are kept in a Safe Deposit Box.

        These Financial Internal Control policies are to be periodically reviewed for compliance by the Finance Committee who can appoint auditors to assist them in that regard.