operations 103 finances class 2 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Operations 103 Finances: Class 2 PowerPoint Presentation
Download Presentation
Operations 103 Finances: Class 2

Loading in 2 Seconds...

play fullscreen
1 / 30

Operations 103 Finances: Class 2 - PowerPoint PPT Presentation


  • 128 Views
  • Uploaded on

Operations 103 Finances: Class 2. Level 1: Certificate in Operations . Operations 101—Staffing Operations 102—Communications Operations 103—Finances Operations 104—Finances Operations 105—Facilities . Operations 103—Finances . Class 3—Expenses. Scripture .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Operations 103 Finances: Class 2' - zarek


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
level 1 certificate in operations
Level 1:Certificate in Operations

Operations 101—Staffing

Operations 102—Communications

Operations 103—Finances

Operations 104—Finances

Operations 105—Facilities

operations 103 finances

Operations 103—Finances

Class 3—Expenses

scripture
Scripture

1 Chron. 29:11 Yours, Lord, is the greatness and the power and the glory and the majesty and the splendor, for everything in heaven and earth is yours. Yours, Lord, is the kingdom; you are exalted as head over all.

Prov. 3:6 in all your ways submit to him, and he will make your paths straight.

1 Chron. 10:31So whether you eat or drink or whatever you do, do it all for the glory of God.

expenses
Expenses

Three Keys for Success

1. Organization

2. Communication

3. Knowledge

expense d efined
ExpenseDefined

ex.pense /ik’spens/ noun

1. the cost required for something: the money spent on something

synonyms:cost, price, charge, outlay, fee. tariff, levy, payment; More

2. the costs incurred in the performance of one’s job or a specific task, esp. one undertaken for another person.

plural noun:expenses “his hotel and travel expenses”

3. A thing on which one is required to spend money.

plural noun: expenses “tolls are a daily expense”

synonyms: overhead, costs, outlay, expenditures(s), charges, bills, payment(s):

verb

3rd person present: expenses

1. offset (an item of expenditure) as an expense against taxable income.

fund accounting
Fund Accounting

Fund Accounting reports and track information that is most important to you, your board and your supporters.

Fund accounting records what types of direction the donor gave when giving and how then the funds were spent.

Each fund has a distinct purpose, ranging from operating expenses to funding the various activities of the organization.

allowable non allowable expense
Allowable/Non Allowable Expense

The IRS has no specific listing of expenses that the church are prohibited from spending money on beyond the three categories below.

1.Inurement and Private Benefit (Unreasonable Compensation or Personal Expenses)

2.Substantial Lobbying Activity & Political Campaign Activity (Politics)

3.Illegal Items (Illegal Substances)

Tip: The IRS offers a quick reference guide of procedures for Churches and Religious Organizations to help them comply with tax laws. http://www.irs.gov/pub/irs-pdf/p1828.pdf

expense documentation
Expense Documentation

Established a policy that all expenses are an arrangement to either reimburse or advance an employee's business expenses.

Follow the rules of an accountability plan where every reimbursable expense must meet three requirements: (1) it involves a church connection (it serves a purpose for the church); (2) it requires the employee to sufficiently explain why the expenses were necessary; and (3) it requires the employee to return any excess amounts that don’t comply with the policy.

Employees must provide the organization with sufficient information to identify the specific business nature of each expense and to prove the necessity of each expense. It is not sufficient for an employee to lump expenses into broad categories such as "travel," or to report expenses through the use of non-descriptive terms such as "miscellaneous business expenses."

Institute the "Three P" policy on every receipt, which includes 1. Purpose, 2. People, and 3. Place. A description and date should be on each receipt that is turned in, which is then entered on the proper expense reports.

income expense trips
Income/ExpenseTrips
  • Create a separate Fund Class for each event
  • Create a system that identifies income and expense
  • Predict the budget but make sure staff understand if they don’t hit the income they can’t spend it.
expense review
Expense Review
  • Send out Actual vs Budgets Reports once a month
  • Do spot checks and compare balances
  • Set up quarterly financial meetings with Board
  • Have double signatures on all expenses
  • Have someone do the bank reconciliations that doesn’t write the checks.
internal controls
Internal Controls

Internal controls are what CPA’s do to ensure:

  • What we want to happen will happen
  • What we don’t want to happen won’t happen
contracts capital purchases
Contracts Capital Purchases

Contracts

1. Have two sets of eyes.

2. Have a lawyer review it if it's large or too complicated

Capital Purchases

1. Always have multiple vendors

2. Be sure to save for purchases

3. Use the Google Drive to track progress

chart of accounts
Chart of Accounts

Chart of accounts is a way to identify expenses.

Just like passwords for the internet, you don’t want to many of them or you will forget.

Just like theology, you don’t want different interpretations of the same core scripture (expense).

chart of accounts1
Chart of Accounts

Salaries and Wages

Employee Benefits

Advertising

Banking Expense

Benevolence & Missions

Technology

Depreciation

Direct Program Expenses

Education

Honorariums/Gifts

Interest Expense

Building Expense

Meals and Entertainment

Office Expense

Professional Fees

Rent

Travel

Utilities

51000 payroll employee benefits
51000 Payroll &Employee Benefits

51100 . Salaries & Wages

51101 . Salaries

51102 . Bonus

51103 . Housing Allowance

51303 . Employee Honorarium

51104 . Payroll Taxes

51200 . Employee Benefits

52702 . Workers' Comp Insurance

51201 . Medical Insurance

51202 . Dental Insurance

51203 . Life Insurance

51221 . LTD

51222 . STD

51223 . EE Life

51224 . AD&D

51204 . Vision Insurance

51205 . Voluntary Insurance

51211 . 403(b) Match

51213 . Taxable Employee Benefits

51220 . Other Benefits

51300 . Honorariums/Gifts

51301 . Honorarium/Gift

51302 . Gifts

52000 operations accounts
52000 Operations Accounts

52100 . Rent

52101 . Rent Building Space

52102 . Equipment Rent

52103 . Event/Other Rentals

52105 . Ground Lease

52200 . Utilities

52201 . Trash

52202 . Cable/Satellite TV

52203 . Electric/Gas

52204 . Water

52300 . Building Expense

52301 . Equipment Maintenance

52302 . Building Maintenance

52303 . Cleaning Services

52304 . Cleaning/Restroom Supplies

52305 . HVAC Maintenance

52306 . Security Monitoring

52307 . Pest Control

52308 . Snow Removal

52309 . Landscaping

52310 . Common Area Maintenance

52701 . Building Insurance

52801 . County and CA Taxes

52400 . Professional Fees

52401 . Auditing/ Accounting Fees

52402 . Legal Fees

52000 operations accounts cont
52000 Operations Accounts, cont.

52403 . Consultant Fees

52404 . Background Checks

52405 . Permit/Association Fees

52407 . Payroll Processing Fee

52500 . Interest Expense

52503 . Interest - Howard Bank Loan

52504 . Interest - Church Loans Loan

52505 . Interest - Bentley-Forbes Loan

52506 . Interest - BB&T Loan 0001

52507 . Interest - BB&T Loan 0003

52508 . Principal - BB&T Loan 0001

52509 . Principal - BB&T Loan 0003

52600 . Banking Expense

52602 . Online Merchant Fees

52603 . Bank Fees

52604 . Credit Card Fees

ministry accounts
Ministry Accounts

53000 . Direct Program Expense

53100 . Direct Program Expenses

54104 . Books/DVDs/Teaching Resources

53101 . Ministry-Specific Equipment

53102 . Ministry-Specific Supplies

53103 . Resource Ctr Inventory

53104 . Food Supplies

54000 . Technology/Equip/Office

54100 . Office Expense

54101 . Office Equipment

54102 . Office Furniture/Decor

54103 . Office Supplies

54105 . Postage

54106 . Printing

54200 . Technology

52406 . IT

54306 . Hosted Software

54307 . A/V Equipment

54201 . Cellular Phone

54202 . Local/Long Distance Phone

54203 . Phone System

54301 . Computer Equipment

54302 . Software

55100 . Meals/Entertainment

55101 . Meals

ministry accounts cont
Ministry Accounts, cont.

55102 . Entertainment

55200 . Travel

55201 . Lodging

55202 . Transportation

55203 . Mileage Reimbursement

55300 . Education

51212 . Education/Tuition Reimbursement

55301 . Conference

56000 . Advertising

56101 . Programs/Flyers

56102 . Business Cards

56103 . Newspaper/Radio Advertising

56104 . Public Relations

56105 . Directories

56106 . Signs / Banners

57000 . Benevolence/Missions

57100 . Benevolence/Outreach

57101 . Financial Assist./Benevolence

57102 . Domestic Outreach

57103 . International Outreach/Missions

57104 . Outreach Supplies

non cash expense accounts
Non Cash Expense Accounts

59000 . Non-Cash Transactions

59101 . (Gain) Loss on Disposal of Fixed Asset

59201 . Depreciation

tools
Tools

Income Collection:

  • City & ACS Technology: Collecting and Recording of Income
  • ServiceU & Shelby: Collecting and Recording of Income
  • mGive: Communication and Giving via Text
  • Square and Quickbooks Merchant: Collecting income from Cafe and Resource Center

Accounting Software:

  • Quickbooks

Electronic File Room:

  • Corpsystem Workpaper Manager

Communication:

  • Google Drive: Centralize Purchasing, Collection of Data
  • Evernote : Organizing thoughts, ideas and task
a few finance forms
A Few Finance Forms

Please feel to use any of these forms

https://drive.google.com/folderview?id=0BzMarO-L4topcTBWQUNIZ2UxR00&usp=sharing

These forms are also on the class website.

Please don’t hold us legally responsible.

slide28

Q & A

Send Questions via Chat

matt benford thoughts for money matters chapter 5
Matt BenfordThoughts for Money MattersChapter 5

Generally speaking, the authors mention that setting a strategic budget and analyzing it should fall within the parameters they suggest.

What would you say some of the reasons are that your church does or does not analyze their budgets strategically?

thoughts for money matters chapter 6
Thoughts for Money MattersChapter 6

The authors mention how power can influence the analysis and allocation of budget and resources.What is the relationship, if any, between a church’s governance style/ polity and the giving strategy of its members?

What we see in the book is that a lot of the power to influence the budget is tied in up in the people who help lead the church (formally and informally). What are some of the ways a monitored, strategic budget can utilize both the “power players” in church as well as making sure that the church moves forward as a unit, committed to the Great Commission?