ECCU Blog

It’s easy to understand why ministries believe they are less likely to become a victim of a financial crime. This is because of the great trust they have for their staff. And while that trust may have been earned or even warranted because of their common Christian bond, internal controls are still necessary. Proper controls don’t say “We don’t trust you.” Instead, they say, “We want to protect you.” Not only do they remove the opportunity for any misappropriation of funds, they also catch errors and protect staff from innuendo and false accusation if a loss is incurred.

Here are six key elements of internal controls for churches and ministries:

1. Maintain clear organizational structure, including proper channels for reporting suspected improprieties.

2.  Keep policies and procedures that are clearly written, current, and accessible. This leaves no question about authority, and helps part-time and volunteer staff carry out activities and continue them during periods of turnover.  

3.  Implement separation of duties. Some of the most important separation of duties for ministries include handling donations and being responsible for recording the receipts in the accounting records. A key component is the routine review and reconciliation by someone other than the preparer or transactor to determine that transactions have been properly processed.  

4. Practice dual control over all cash donations. Two persons should be assigned counting responsibility for all cash and for deposit preparation. The cash counters should not also prepare the deposits, and all positions should be rotated periodically.

5.  Require dual control of cash until it is delivered to the bank or a courier. A locked safe that requires two distinct individuals to remove the cash keeps it secure.

6.  Implement dual control for online banking systems. Individuals who create files should be different from those who release files for processing. 

What other financial controls has your ministry found helpful?

How do you decide if an event is worth your time? I usually start by asking people who’ve attended before. Since ECCU’s 2011 Financial Forum for Ministries is happening soon, I thought I’d save you some time by interviewing an alumnus.                                                                               

Jim Clark is the associate pastor of business and stewardship at the First Evangelical Free Church in Fullerton, California. Here’s our conversation about the upcoming Forum.

MBG: Have you attended the Financial Forum for Ministries in the past?

Jim: Yes, in fact it is a priority event for my team.

MBG: You’ve signed up again this year. Why?

Jim: We love the partnership of ECCU, CapinCrouse, and ECFA to serve ministries and particularly the local church. We can drive literally a few miles and receive valuable training and legislative updates while networking and being encouraged in our kingdom work. This is the best value of its kind while allowing us to quickly get back to work and apply what we have learned.

MBG: Please talk about the format of the forums. How does it add value to this particular learning opportunity?

Jim: The presenters are always top notch. These are the experts in their fields who are at the forefront of changes that could affect our ministries. The material presented goes deep, but is always done in a format that we can easily apply. The setting is wonderful and the time we have to network with those who we don’t normally get to be with, and share our challenges, is fantastic.

MBG: What’s one reason you’d recommend that others attend the Financial Forum for Ministries?

Jim: We are all looking for ways to stretch our budget dollars while staying current on issues facing our ministries. The ability to stay local, glean expert knowledge, and network is an excellent value and an opportunity to be good stewards for our ministries.

MBG: How can someone who attends make the most of the experience?

Jim: Come ready to learn. Think of who in your organization might benefit from this day. It’s a great opportunity for board members to gain a better understanding of the challenges your ministry faces. There is normally plenty of time for Q & A, so don’t be afraid to ask questions.

Have you attended past financial forums? What was your experience?

Follow this link to learn more and sign up for the financial forum in your area.

I’ve blogged in the past about the tension that can develop between people who hold differing views about how to manage ministry finances. The topic can spark passionate discussion. It can also spark thoughtful guidance from ministry leaders like Henry Morris III, chief executive officer with the Institute for Creation Research.

I stopped by the ICR website the other day and ran across a piece Morris wrote titled “Ministry Money.” He says that “the principles of money management routinely place ministry leaders in certain tensions regarding wise stewardship. Some insist on debt-free ministry operations. Others see prudent financing for capital projects as wise financial leveraging.” He goes on to offer some “biblical admonitions to help us all make wise financial decisions.”

If you’d like to learn more about ICR’s ministry, check out the video we did last year titled Contending for Creation.

The Religious Institutions Group of Rothgerber, Johnson & Lyons LLP (RJL), one of Colorado’s oldest law firms, is sponsoring an all-day Religious Institutions Law Day for churches, religious schools and colleges, religious communities, and ministries.

Seminar topics will address current issues and developments for religious organizations, including U.S. Supreme Court rulings, funding a building campaign, school vouchers in Colorado, social networking and website issues, employment agreements and handbooks, waivers and releases, and new legal risks for Protestant ministries.

Cost for this seminar is $75 per person. It will be presented at WorldVenture headquarters in Littleton, Colorado.

To learn more and register for this seminar, visit RJL’s web page.

Does your budget accurately reflect your ministry’s vision? Are you using that budget effectively?

God provides the financial resources to pursue your ministry’s vision. Your budget should guide the investment of those funds in ministry. To help ensure that your ministry’s budget serves this important role, ECCU is hosting a webinar entitled How to Build and Use a Better Budget.

Date: Tuesday, September 20, 2011
Time: 10:00 a.m. to 11:00 p.m. (PDT)

Our presenters are Jeremy Moore and Denise Craig.

Jeremy specializes in short- and long-term asset management and acquisition planning and execution, as well as creation and implementation of ministry financial strategies. He holds a Bachelor of Arts in history with minors in business and theology from Lee University. He has completed graduate and postgraduate work at Auburn University, Northwestern University, and Colorado State University. His background includes positions as certified financial manager at Merrill Lynch and senior vice president of commercial banking at one the nation’s largest banks. Jeremy is a Christian, husband, and father, and is passionate about making ministries more effective in reaching and developing people.

Denise is a Certified Church Business Administrator through the National Association for Church Business Administration (NACBA). She is also a member of the Manchester Who’s Who Among Executive and Professional Women. Denise just completed a three-year term on NACBA’s Professional Training and Standards Committee and is president of the local chapter. Denise likes to stay in touch with the latest trends in church business administration and serves on the Editorial Advisory Panel for Church Executive magazine. Abba’s House is also a proud member of the Evangelical Council for Financial Accountability (ECFA). She also holds a Bachelors of Science degree in vocal music education from the University of Tennessee at Chattanooga. In her former career, she taught music and theater to secondary students, directed several full-length musicals, plays, and madrigals, and has served on multiple professional music committees. She is married to her soul mate and best friend, Jay Craig. They reside in Hixson with their three blessings—Drew, Christian, and Sophie.

For more information or to register for the webinar, click here.