Ministry Finances

Best Practice for Ministries that

Accept and Handle Money

Version 1.1

2016

NVBC-POL-AD002-v1.1

NVBC-POL-AD002-v1.1

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1. Document Revision and Review History

1.1. Revision History

1.2. Review History

Rev Date Issued By Approved By Authorisation Capacity

1.1 06/11/16 David Hampe Board Meeting 06/11/16

Board (full)

Rev Date Author Comments

1.0 09/11/16 David Hampe Initial draft policy for best practice

1.1 06/11/16 David Hampe Minor corrections & removal of banking details

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Contents 1. Document Revision and Review History ....................................................... 2

1.1. Revision History ................................................................................................... 21.2. Review History ...................................................................................................... 2

2. Background ...................................................................................................... 43. Who Does This Apply to? ............................................................................... 44. Record Keeping ............................................................................................... 45. Banking and Cash Float .................................................................................. 5

5.1. Banking .................................................................................................................. 55.1. Cash Float ............................................................................................................. 5

6. Funding, Budgets, and Payments .................................................................. 66.1. Funds Available for Use ....................................................................................... 6

6.1.1. New Ministries ................................................................................................................ 66.1. Ministry Budget ..................................................................................................... 66.2. Payments for Goods & Services ......................................................................... 6

6.2.1. Personal Payments ........................................................................................................ 77. Responsibility .................................................................................................. 78. Appendix 1 - Contact Details .......................................................................... 8

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2. Background This policy is to set out best practice for financial handling pertaining to NVBC ministries that collect money from those who attend hosted events or functions.

3. Who Does This Apply to? Ministries that have an element of receiving funds from people who are members / attend events or functions hosted by the ministry. Examples:

1 A Fitness Ministry - provides a service and connection with the local community

a. Accepts money from attendees when they attend a session

b. Purchases materials to directly operate the session (e.g.: exercise mats, balls, etc.

c. Purchases refreshments as required

2 A Men’s Ministry provides Christian connection for NVBC attendees and visitors.

a. Accepts money (donations) from people who come to an event (e.g. Restaurant with a meal provided or a bowling social activity).

b. Purchases materials to directly operate the session (e.g.: exercise mats, balls, etc.

c. Purchases refreshments as required

4. Record Keeping To allow open transparency, ministries that receive in money will keep a simple ledger of incoming funds and incidental expenses. There should be a designated treasurer for each event who would be responsible for the funds and record keeping. This record could be a simple exercise book depicting columns as follows (as a minimum):

1) Date

2) Event

3) Description

4) Received ($)

5) Paid ($) Please see the example below:

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Information from this ledger should be available to anyone who has contributed to an event operated by the ministry or the ministry itself to ensure transparency. Any privacy or confidentiality concerns should limit the information provided (e.g. An individual names list where money has been taken does not need to be provided, but rather the total that was taken). The ledger is to be made available to the Board quarterly.

5. Banking and Cash Float

5.1. Banking Unless other arrangements have been made with the Board, money should be given directly to the NVBC Treasurer for banking in our Baptist Financial Services account. Please do this as soon as practicable (but not longer than one month) after any event where the money was received as it helps keep track of things. Individual Ministry bank accounts should not be set up as we want to keep everything together in our main account. An account will be kept by Ministry so contributions are accounted for.

5.1. Cash Float Where money is taken to operate an event incidental costs can be taken out to pay for items directly related (e.g. food account at the end of a venue event). However, these costs should also be documented in the ledger and receipts should be collected. If a member of the team were to pre-pay an account from personal funds and the funds taken covers that expense, then they can be reimbursed out of the takings. However, like any other expense, this should be documented in the ledger and receipts collected.

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6. Funding, Budgets, and Payments

6.1. Funds Available for Use Ministries can spend funds up to the budget set for that ministry in a given year. There is contingency built into the overall budget that can be assigned to various aspects of NVBC’s operation, including new ministries that may commence during the year.

6.1.1. New Ministries If new ministries include a “handling of funds” aspect they should include a simple requested budget analysis in the initial proposal. This includes an estimate of funds that are likely to be received as well as expected expenses. This is required regardless of the ministry being self-sustaining, generating excess or being funded by NVBC. If the proposal is approved, the NVBC Board will allocate an initial Budget to that ministry, based on information to hand.

6.1. Ministry Budget Each year NVBC uses a “bottom-up” approach to form the overall church budget. An estimate is made by ministry using criteria such as pervious year history, CPI inflation and the awareness of special events / circumstances (e.g. Weekend-end event for Men’s Ministry not run last year) The budgeting process begins in the October of the previous year. The Board should be notified at that time anything of note that may impact on a ministry’s operation in the following year. The Board will try to accommodate as much as possible.

6.2. Payments for Goods & Services Payments for good and services linked to the operation of a ministry or and event are made by the NVBC Treasurer. A ministry representative only need advise the Treasurer of the requirements and they will be given a cheque, cash or paid directly to the service provider. These payments still should be recorded in ministry’s ledger and marked accordingly. See the example below:

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6.2.1. Personal Payments If a ministry representative pays for goods or services from their pocket they can be reimbursed in the following ways:

1) Funds received by the ministry from event attendees

2) By request to the NVBC Treasurer.

Receipts should be collected and an appropriate entry made in the ministry funds ledger so that transparency can be maintained. Example:

7. Responsibility It is the ministry leader’s responsibility to ensure this policy is being followed. However, functions within the policy can be delegated in the same way operational tasks within the team environment are. This policy is not intended to introduce onerous workload on a ministry but rather provide a guide for suitable transparency and best practice governance around overall NVBC financial management.

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8. Appendix 1 - Contact Details

Position Name Contact NVBC Treasurer Debbie Blain debbie@blain.id.au