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.