Financial Controls

Approved by Finance Committee, July 21, 2011
Amended May 22, 2014, April 10, 2018, November 10, 2022

The Church Board has delegated the responsibility of maintaining adequate financial controls to the “Finance Committee in consultation with the Lead Pastor and the Treasurer” according to the following church board policy from the Care for Resources section:

7) Financial Controls.  The Church Board shall maintain adequate financial controls to protect the assets of the congregation.  It is the responsibility of the Finance Committee in consultation with the Lead Pastor and the Treasurer to develop these procedures and monitor that these financial control procedures are being followed.  These procedures should include but are not limited to the following:

a) Approval of bills for payment
b) Payment of bills
c) Review of bills
d) Receipting income and preparing deposits
(e) Job descriptions and procedures for
i) Assistant treasurer(s) including but not limited to recording and maintaining a record of contributions,
recording and maintaining a record in individual intentions to contribute, preparing and distributing
individual contribution reports, and preparing summary reports of giving and giving intentions.
ii) Money-counters including but not limited to collecting and recording Sunday offerings.

f) Financial relationships and procedures with other groups in the church such as
i) Sunday School
ii) Junior High Youth
iii) Senior High Youth
iv) Library Committee
v) Auxiliaries (see Bylaws No. 2 Section F)

g) Retention of financial records

  1. Access to financial accounts

    a) As needed the Church Board shall adopt resolutions authorizing appropriate individuals for various financial accounts.  Generally these will include the Finance Manager, Assistant Treasurer and Clerk.  The Finance Manager is the primary individual with others available in the absence of the Finance Manager.

b) BCMC shall have the following accounts for the following purposes:
i) Union State Bank
(1) BCMC Checking.  The primary account for all income and expenses.  Funds may be
transferred to and from this account from the other accounts.  Any interest earned on this
account is credited to Miscellaneous Income for the General Fund
ii) Everence Trust
(1) Mission and Service Endowment Fund.  Assets of the BCMC Mission and Service
Endowment Fund administered by the Mission and Service Endowment Fund Committee
according to guidelines.  Any losses or gains remain with the fund.  Funds may be
transferred to and from the BCMC Checking account as necessary.
(2) Investment Fund.  Funds are transferred to and from BCMC checking as needed to maintain
adequate cash flow and earn additional interest on reserves and restricted funds. Interest
earned is credited to the Plant Fund.
iii) Everence
(1) Everence Praxis Money Market Account.  Funds are transferred to and from the BCMC
checking as needed to maintain adequate cash flow and earn additional interest on reserves
and restricted funds.  Interest earned is credited to the Plant Fund.)

2) Use of credit cards
a) BCMC shall have one credit card account, currently a Visa account with UMB.
b) The purpose of the account is for ease in making certain purchases when it is not possible to charge and be billed by the vendor for payment by the BCMC Finance Manager.  No personal purchases with the credit card are permitted.
c) The credit card is for use by church office staff (Office/Facilities Manager and pastors).  For others purchasing church-related items the purchase must be coordinated with the Office/Facilities Manager.
d) If a credit card is used outside of the office (for example, for a pastor accompanying youth on a service trip), it needs to be checked out on the list in the office file.
e) Signed receipts or some written record for purchases must be turned in to the Office/Facilities Manager for verification purposes who submits to the Finance Manager.
f) Any purchases other than routine, budgeted items must first be approved by a commission or board chair prior to purchase.

3) Payment of bills
a) All financial transactions involving the disbursement of church funds are done by the church Finance Manager, including the paying of all bills for the general operation of the church (budget), benevolent contributions, restricted funds, Sunday School and youth activities.  This is to provide a uniform and consistent method of the handling of bills, transfer of funds, and to even out the work load of the Finance Manager.
b) It is important that payments be made in a timely manner to maintain positive vendor relations and that adequate supporting documentation is obtained (in some instances email may be appropriate).
c) The Finance Committee is responsible to monitor budgeted expenditures and provide oversight to the financial affairs of the church.
d) The Office/Facilities Manager serves as the contact person between the church office and the Finance Manager.

4) Approval of bills for payment.  Bills will be approved according to the following procedure before they are processed by the Finance Manager.  Approval is indicated by signature or initials on the invoice, an attached expense documentation form, or by an email.
a) Recurring Payments.  Those items that are part of an approved church annual budget and are of a recurring nature or other routine time-sensitive expenses are to be reviewed for accuracy by the Office/Facilities Manager, signed off, and forwarded to the Finance Manager for payment.  If there are any questions regarding the payment, the Office/Facilities Manager will contact the appropriate commission or committee chairperson or pastor.

i) Utilities (excluding phone)

ii) Lease and service contracts approved for payment from the Facilities Committee or Finance
Committee budgets.  The Office/Facilities Manager will confirm that the appropriate services were

iii) Insurance policies recommended by the Finance Committee and approved by the Church Board

iv) Payroll related expenses according to the approved budget
(1) This includes but is not limited to:
(a) Payroll
(b) The Corinthian Plan
(c) Mennonite Retirement Trust
(2) The Office/Facilities Manager will confirm payroll based on the performance of certain duties
such as locking up the building.
(3) The Music Coordinator will confirm payroll or honorariums based on the performance of certain
duties such as special music or playing the organ or piano.
(4) Other regular payroll does not need confirmation.

v) Benevolences included in the approved budget (does not require review by the Office/Facilities

b) Other Budgeted Items.  All other disbursements of funds that are to be charged against a budgeted line item are to be signed for by an authorized party according to the following guidelines, forwarded to the Office/Facilities Manager and given to the Finance Manager for payment.
i)Approved by Office/Facilities Manager
(1) Office expenses
(2) Phone
(3) Routine postage and mailing expenses including
(a) Deacon: CD/Bulletin Delivery
(b) Hospitality: Newsletter
(4) Services provided by others related to elevator, fire alarm, lawn service, or plant maintenance
ii) Approved by Custodian
(1) Custodial Supplies
iii) Approved by chair (or otherwise authorized representative) of responsible Commission or
Committee or pastor or staff assigned to Commission or Committee by Lead Pastor
(1) Other expenses charged to a specific commission or committee.  Approval for non-routine
expenses should be mentioned in commission or committee minutes.
iv) Approved by pastors
(1) Other staff related expenses not mentioned above

c) Special Funds (Restricted)
i) According to the “Responsible Entity” on the Special Funds List approved and amended by Church

d) Approved by Finance Manager
i) Funds for individual Sunday School classes according to procedures established by the Faith
Formation Commission

e) Memorials or Bequests
i) As approved by the Church Board or Finance Committee according to the Memorial Fund Policy or
Bequest Policy.

5) Role of Office/Facilities Manager.  The Office/Facilities Manager plays a central role:
a) Center for receiving bills, providing clear explanation of purpose of expense if necessary, securing
necessary approvals, and passing on approved bills to Finance Manager for payment
b) Identifying contributions or payments for designated purposes delivered to the office

6) Review of individual bills already paid. 
a) Finance Committee reviews a list of bills paid the previous month.  This list is prepared by the
Finance Manager using financial software to print detailed transactions.
b) The Finance Manager prepares a list of transactions relevant to each Commission and Board
Appointed Committee each month and distributes to the Commission/Committee chair for review.

7) The Finance Committee will establish policies for financial controls of the work of the following:
a) Money-counters (Money Counting Procedures)
b) Asst Treasurers (Job Description for Assistant Treasurers)
i) Recording donations
ii) Recording results of stewardship canvass
iii) Preparing individual contribution reports
iv) Preparing summary reports of giving and giving intentions

8) The Finance Committee will appoint a person to complete a monthly independent bank reconciliation and report back to the Finance Committee.

9) Auditing Committee
a) Bylaw No 2, Section C, 5 states that the Church Board shall appoint an Auditing Committee
i) “The committee shall examine the records of the Treasurer at the end of each fiscal year and shall
report in writing to the congregation concerning the accuracy of the records and the suitability of the
accounting procedures used.”
ii) Auditing procedures are developed by the Auditing Committee and approved by the Finance
Committee.  See attachment.

10) Financial Relations with Other Groups –see Collecting, Counting, and Depositing Funds

11) Retention of financial records – to be developed