SIERRA PACIFIC MISSION CENTER INTERNAL CONTROL PROCEDURES FOR
FINANCES
Procedures
General
Internal control provides for a system of checks and balances that divides
the responsibilities for the handling of funds, and the accounting thereof,
between two or more individuals so that their work overlaps that of the other’s.
This prevents one individual from having so much control of the procedures that
he/she could misappropriate funds without being found out by the other person.
In a small office, such as the Sierra Pacific Mission Center Office, the Mission
Center Financial Officer or someone designated will exercise satisfactory
oversight and control over the operations. An internal auditor approved by the
Presiding Bishopric of the church will annually audit the mission center books
and prepare a statement to the mission center conference.
Written Procedures
This document constitutes the standard written procedures for the Sierra
Pacific Mission Center.
Segregation of Duties
Due to the limited number of personnel, complete segregation of duties is
unlikely to be achieved by any procedures established. However, every effort
will be made to allow the bookkeeper, when the mission center hires one, to have
only recording and reporting responsibilities.
Budgets
All program and administrative costs will be planned expenditures,
accomplished through the development and approval of a budget. The persons
involved in developing the budget will include, at a minimum, the Mission Center
President, Mission Center Financial Officer, and persons responsible for
coordinating major activities that require costs, such as the Youth Coordinator,
Church Planter, etc. Review of yearly goals and budget during the budgeting
process will include the Mission Center Advisory Council, the congregational
representatives in the Budget/Assessment Roundtable Meeting, and the counselors
to the Financial Officer. The mission center conference will approve the budget.
The Mission Center President and Mission Center Financial Officer will approve,
in writing, any expenditure that was not planned in the budget.
Financial Statements
All balance sheets and income and expense statements will be completed by no
later than the 5th week following the quarter. These statements will
be reviewed carefully by the Mission Center Financial Officer and compared to
approved budgets. Particularly, income and expense accounts will be examined by
the Mission Center Financial Officer and compared with budgets, previous year’s
balances for the same period of time, and current estimates of amounts. The
financial statements will then be distributed to all appropriate persons
(Mission Center administrators, Pastors, Congregational Financial Officers,
etc.).
Records
All accounting records and supporting documentation of any type will be kept
on file and maintained for several years until they are destroyed in harmony
with the Retention Of Records Policy.
Documentation
All journal entries will have sufficient description written on them to fully
explain their purpose and to justify the amounts. They will be examined each
quarter by the Mission Center Financial Officer and approved. When the Mission
Center Financial Officer is acting as bookkeeper, they will be examined by the
Mission Center President and approved.
Bank Accounts
Account Authority
The bookkeeper will have inquiry authority only over bank accounts and will
not be able to withdraw funds, transfer funds or authorize electronic
transactions. Those functions will be provided by the Mission Center Financial
Officer. When the Mission Center Financial Officer functions as bookkeeper, then
all withdrawals, transfers, and electronic transactions must be copied to the
Mission Center President.
Reconciliation
All bank statements will be received unopened by the Mission Center Financial
Officer and reviewed carefully before passing it to the bookkeeper for
reconciliation purposes. The Mission Center Financial Officer will review the
statements for unusual transactions or account transfers as well as review the
cancelled checks and make inquiry regarding any questionable payments. If it is
possible, someone other than the bookkeeper will reconcile all bank statements.
If not always, at least periodically the Mission Center Financial Officer or one
of the assistants might be selected to do this. When the Mission Center
Financial Officer is also serving as bookkeeper, then periodically the Mission
Center President or one of the assistants will reconcile the bank statement.
Receiving Funds
Cash Receipts
Two staff members will jointly open the mail, date and list all monies
received in a permanent register and initial the register. Usually the two staff
members will be the MC President, MC Financial Officer, and/or the Mission
Center Office Secretary but other staff may be delegated to do assist in this
task when they are available. All mail relating to the financial operations of
the mission center will be given directly to the Mission Center Financial
Officer, including vendor’s bills and statements, checks received, and bank
statements and cancelled checks.
Numbered receipts will be issued for all funds received in the office, by the
bookkeeper or the MC Financial Officer. The receipts will be totaled for the
period and should equal the amount of the bank deposit. Deposits will be made
promptly and at least on a weekly basis, with deposit slips fully completed. A
receipt listing and the listing of monies received through the mail for the
period will be attached to the duplicate deposit slip. The MC Financial Officer
will take the deposit to the bank.
Check Payee
Instructions will be given for all checks to be made payable to the church
and never to an employee.
Disbursing Funds
Check Signing
Signature stamp machines will not be used for signing checks. The bookkeeper
will be responsible for writing checks. All checks, with supporting
documentation attached, should be submitted to the Mission Center Financial
Officer, or other signing officer for review and signature. Every effort should
be made to limit checks produced in the absence of the MC Financial Officer.
Generally, checks will be issued once a week. No advance signing of checks will
be permitted. The counselors or assistants to the Mission Center Financial
Officer will be granted authority to sign checks in the absence of the Mission
Center Financial Officer. When there is no bookkeeper, the MC Financial Officer
will write the checks and the MC President or counselors to the MC Financial
Officer will sign the checks. In the event the MCFO must carry the
responsibility of both writing and signing the checks, the unsigned checks with
invoices must be reviewed and initialed by a third party, while the checks are
signed in their presence.
Oblation Funds
Oblation assistance provided to needy persons will be made only by the
Mission Center Financial Officer, his/her counselors, or Congregation Financial
Officers. The Aid Form, OB100, should be completed by the person authorizing the
aid and submitted directly to church headquarters.
Purchasing
Purchases may be made in one of two ways: (1) By check made payable to the
vendor and issued by the bookkeeper, (2) By individuals who have been given
authority to make purchases, using their own funds and requesting reimbursement,
with appropriate documentation, from the bookkeeper. The use of mission center
credit or debit cards is not permitted.
Payroll
Payroll Records
Staff salaries and benefits should be conveyed, in writing, to the bookkeeper
by the Mission Center Financial Officer. The Mission Center Financial Officer
will keep a permanent employee file in a secure place. If a Payroll Vendor is
utilized, the Mission Center Financial Officer will examine the payroll reports
supplied by the vendor as they are received.
Investments
Reserves and Endowments
The World Church, in conjunction with its insurance carrier, is committed to
the secure and appropriate handling of church funds. All congregations and field
jurisdictions with total cash and investments over $100,000 shall place these
funds in one of the investment options of the Affiliate Investment Pool.
Implementation
Expectations and Exceptions
If the Sierra Pacific Mission Center cannot implement any of the above
procedures, the Financial Officer will request an exception for that procedure
from the World Church Controller. Upon agreement to a revised procedure, the
Mission Center Financial Officer will provide the World Church Controller with
signed documentation of the procedure to be followed.
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