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Union United Methodist ChurchFinancial and Accounts Payable Policies and Procedures Table of Contents Page 1 Ministry & Department Requests for Funds Instructions Page 2 Financial Policies and Procedures
Page 3-4 Accounts Payable Policies and Procedures Page 5 Types of Check Requests/Invoices
Page 6 Review Process by Accountant & Check Signers Page 6 Honorarium Procedure
Union United Methodist Church
Finance Committee
Ministry & Department Request for Funds Instructions 1. All requests for budgeted funds in excess of $500.00 must be signed by the Ministry Coordinator and are to be made at least one month prior to date funds are needed. 2. All receipts must be given to the appropriate Ministry Coordinator for submission to the Church Treasurer. 3. Requests should be emailed or dropped off at the church office to the attention of the Church Treasurer. The Church Treasurer will make the determination of whether you will be required to be present at the Finance Committee Meeting. Requests submitted electronically must be forwarded to the Church Treasurer by the Ministry Coordinator. This action will serve as Ministry Coordinator’s signature. 4. Upon receiving the request, the Church Treasurer will date-stamp the request and log it in the “Request Folder”. 5. The Church Treasurer will be responsible for notifying the requestor of the final action. 6. If the requestor has concerns about the request, they may make an appeal to the Finance Committee. 7. Unbudgeted funds needed for $50.00 or more must be approved by the Finance Committee prior to funds being disbursed. Requests must be made via Church Treasurer at least one month prior to date funds are needed and at least 3 weeks prior to the next Finance Committee meeting. Page 1
Union United Methodist Church Financial Policies and Procedures 1. Fundraisers. It is desirable that all fundraisers must be on the annual church calendar which is approved at the first Administrative Council meeting in January of each year. Any subsequent fundraisers not on the church calendar must be approved in advance of the event by the Administrative Council. The above policy is in place to protect the resources of our church, and to ensure that the funds entrusted to us are available to support all our ministries.
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Union United Methodist Church Accounts Payable Policies and Procedures
Purpose:
The Check Request or Invoice is used to access budgeted dollars for: · Payments of services and supplies-— If remittance is due to the vendor, the original invoice must be provided, coded and approved for payment. · Reimbursement of supplies/services that were paid with personal funds must be requested within 60 days— the original copy of the receipt/invoice must be attached to the check request. Note: Reimbursements will not be made without original receipts. · Advancements- prepayment of services to be acquired or performed must be reconciled (receipts provided) within two weeks of the check issuance. If receipts are not turned in within two weeks, additional check requests will not be honored/granted. Note: The advance will then be treated as income to the recipient and reported to the Federal Government.
Completion of Check Request/Invoice: · Each check request form must be completed in its entirety and turned in to Church Treasurer for processing. · Original Receipts or Invoices must be attached to the check request, if the request is for a reimbursement. · Advancements must be accompanied by a detail listing of how the advance will be spent. · Payment of a vendor invoice requires the original vendor invoice to be coded, approved and submitted to the Church Treasurer. · The Church Treasurer will complete the coding and approval of invoices for Direct Billings, Standing Orders, items ordered monthly, provided that a written notice detailing the order with estimated expenditures are provided to the Church Treasurer and the items ordered were budgeted for and are in compliance with these Policies & Procedures. Page 3
Union United Methodist Church
Accounts Payable Policies and Procedures The Ministry Coordinator of each ministry must screen each check request or invoice before signing to ensure the following:
-There are funds available in the budget
-The Check request form or Invoice complies with the Policy & Procedures outlined herein.
Non-payment of Check Request/lnvoice:
Payment will not be made for the following reasons: - Missing original receipts/invoices - Check requests, Invoices, or Reimbursements not approved by relevant ministry Coordinator. - Not a budgeted item or exceeds budgeted amount. - Expenditure of $500.00 or more, although in the ministries’ budget, require prior approval from the Finance Committee- see p.2, item #1 under “Financial Policies and Procedures”. Payment Processing:
• All Check Requests or Invoices submitted on or before noon (12:00pm) of each Friday will be mailed or ready for pick up within 5 business days. Payment processing date may be subject to invoice due date. PLEASE PLAN AHEAD!
The above policies/procedures are in place to protect the resources of our church, and to ensure that the funds entrusted to us are available to support all our ministries.
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Union United Methodist Church Types of Check Requests/Invoices Check Requests for: • Services rendered by (Contract Musicians, etc.) • Supplies/Products (Florist-Poinsettias etc.) • Advance Requests (Community Outreach, etc.) • Payment of a Ministries' budgeted expenses (Registration fees, etc.) • Reimbursement of the Ministries' budgeted expenses paid with personal funds (Printing, Materials, etc.) • Helping Hands (Rent, Utility, Food, Sick & Shut-In, etc.)
Invoices for: • Services rendered by (Brinks, Pitney Bowes, Lawn Service, etc.) • Supplies/Products (Books, Office Depot, Cokesbury, Sams, etc.) • Payment of the Ministries' budgeted expenses payable to the Vendor • Bills (Utilities, Insurance, Florist, Bus Maintenance, Gas, Alarm Service, etc.)
Purchase Requests: · Purchases in the amounts of $500 to $1000 must be supported by three (3) quotes. These quotes can be written quotes or telephone quotes. · Purchases in excess of $1000 and above must be supported by three (3) bids. These bids must be written. Note: If the low bid is not being used, a written justification MUST be submitted to the Administrative Council for approval of purchases in excess of $1000.00 before purchase/services can be completed. Page 5
Union United Methodist Church
Review Process by Accountant & Check Signers Before processing Check, the accountant confirms the following: • Check Request/Invoice is budgeted • Approved by relevant Ministry Coordinator • Approved by Finance Committee if over $500 • Funds are available to cover check • Hold request, Contact Ministry Coordinator/Chair or person making request if request does not meet requirements
Before signing Check, the check signers confirm the following: • Appropriate Documentation provided • Approved by relevant Ministry Coordinator • Approved by Finance Committee if over $500 • Hold check, Contact Ministry Coordinator/Chair if request does not meet requirements
Union United Methodist Church
Honorarium Procedure • All requests for honorariums require prior approval from the Finance Committee. • If Honorarium is part of a total for an event or program, request should be presented with total event proposal. • Honorariums will be budgeted in the year 2011 budget. Page 6
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