MLUUC Finance Policy

Note: This policy was approved by the Board of Directors on 2012 June 16. To access the hand-out form, please click here.

I. Banking

  1. The Treasurer will utilize a local bank, when appropriate considering yield and access to funds invested. The safety rating should be at least 2 on a 5 point scale as indicated by at least two rating agencies. A rating of 3 or better is desirable.
  2. A checking account and one or more investment accounts will be maintained at the bank selected. Investment account is hereby defined as an interest bearing account.
  3. All accounts will be accessible to the elected Treasurer and one other member who is approved by the congregation.
  4. The balance in the checking account will be capped at an amount adequate to meet projected budget expenses for the next six months. Funds in excess of that amount will be transferred to an investment account.
  5. The Treasurer will make available for inspection to any member upon request the account statements within ten business days of the request.
    1. Original account records will remain in the possession of the elected Treasurer at all times.
    2. A member may request copies subject to a fee.
    3. Charges for copies will be no less than $5.00 plus costs.

II. Money Management

  1. All collections will be validated at the time of collection by a dual count to include the Treasurer or his/her designated representative and one other member.
  2. Collected funds will be deposited in the appropriate bank account within five business days of collection.
  3. Revenue from product sales such as coffee, t-shirts, etc. shall be conveyed to the Treasurer within five business days by the party responsible for receiving the funds from the sale of products.
  4. Members who pledge are encouraged to make their donation by check. Pledges made in cash should be placed in an envelope marked "Pledge." Anyone making a donation or a pledge in cash that wishes a receipt should include in the envelope a slip of paper with their name printed on it. An envelope containing a donation (not part of a pledge) for which a receipt is requested should be labeled or should be marked "Donation."

III. Disbursements

  1. The Treasurer shall disburse funds to meet approved budget line expenses as needed.
  2. Ongoing funds maintained for designated, non-budgeted purposes (for example a scholarship fund) shall be disbursed as follows:
    1. Proposals for expenditures up to $500 should be approved for disbursement by a majority of members present at a duly constituted Circle of Congregants meeting.
    2. Proposals for expenditures that exceed $500 should be approved for disbursement by a majority of members present at a duly constituted meeting of the congregation meeting the same requirements as to constitution as an Annual Meeting.
  3. Special authorization of funds for specific purposes, such as a one-time budget for moving expenses or an advertising campaign, shall be disbursed for the budgeted purpose only and as follows:
    1. An ad hoc committee of at least three members, including the Treasurer, shall be approved by the congregation to authorize proposed expenditures from the special authorization.
    2. Proposals to expend funds that the ad hoc committee has concerns about can be deferred to the congregation for a decision.
    3. The ad hoc committee's authority to approve proposed expenditures may be capped by the congregation when the committee is formed, if it is deemed appropriate.
  4. Reimbursement of expenses incurred by members on behalf of MLUUC while conducting church business shall be guided by the following rules.
    1. Anticipated expenses associated with church-approved activities should be approved in advance.
    2. Any expenses associated with church-approved activities that exceed the approved amount can be reimbursed in an amount not to exceed $20.00 or 15%, whichever is the lesser amount, by submitting a receipt and brief explanation for the excess expense to the treasurer.
    3. Any expense associated with church-approved activities that exceeds the amount specified in the above cost overrun criterion should be submitted to the treasurer for approval before the expense is incurred.
      1. The treasurer, in consultation with any ad hoc committee with oversight for the funds, will approve or disapprove the proposed cost overrun.
      2. When no oversight committee exists and the cost overrun will be $50.00 or greater, the Treasurer shall seek approval from the congregation.
    4. Any excess cost associated with church-approved activities incurred that exceeds the cost overrun criterion above for which prior approval was not sought and obtained, may be submitted for reimbursement and will be subject to review by either an ad hoc oversight committee or the congregation. Such reimbursements are discretionary, not obligatory.

IV. Reports and Records

  1. The Treasurer will prepare reports on the financial status of the church on a monthly, quarterly and annual basis.
    1. Reports will be posted on the church's document site each month, quarter and year as they are submitted.
    2. At the Annual Meeting the Treasurer will give an overview of the fiscal status of the church to date.
  2. All financial status reports will compare current expenditures and income to projected expenditures and income and to comparable previous periods for the term of the report. For example, the March 2012 report would use as a comparison March 2011 and February 2012.
  3. Monthly financial status reports will include itemization of expenditures under each budget line as appropriate. For example, if $15 is expended to buy hardware to install shelving this is all that needs to be reported. It would not be necessary to list each piece of hardware as a separate item.
  4. All special/designated funds will be reported as an independent item in financial status reports.
  5. Reports are hereby defined to include a projected annual budget for the next fiscal year. This report shall be presented to the congregation at the Annual Meeting and a vote taken on it.

V. Audits

  1. At the end of each fiscal year, a three person ad hoc committee headed by a person with account access (excluding the Treasurer) shall review the financial records for the past fiscal year.
    1. The two at-large members of the ad hoc review committee shall be approved by the congregation.
    2. The internal review should be completed before the end of July, unless extenuating circumstances prevent doing so.
    3. If during the review significant discrepancies are identified, approval for an outside audit shall be requested.