finance team

Purpose

This policy establishes and communicates the Finance Team Charter as set forth by the YOUR CHURCH Leadership Team.

Scope

The Leadership Team formed and empowered the Finance Team to function as a team of subject matter experts in the accounting and finance area. The team regularly reviews the church’s financial status and advises the Executive Pastor. To this end, this policy includes specifics related to the scope and function of the Finance Team.

Responsibility

The Executive Pastor, reporting to the Senior Pastor, is responsible for implementing and following the specific guidelines and operating parameters outlined in this policy. The Executive Pastor has the primary responsibility for this policy.

Policy

Team Purpose

The Finance Team exists to regularly review YOUR CHURCH’S financial status and financial business practices/processes as an advisory board to the Executive Pastor, who is also the church’s CFO.

The Finance Team is also a sounding board for the Executive Pastor as needed to pursue improved financial business practices, reporting, and decision-making.

Additionally, the Leadership Team may call upon the Executive Pastor and Finance Team to review a contract or proposal requiring the church to make a significant, long-term financial commitment, such as a loan or other contract.

Leadership

The Executive Pastor is the only permanent member of the Finance Team and functions as the leader (chairman).

The Executive Pastor may, at his discretion, assign members of the Finance Team to lead specific projects or other activities performed by the team to accomplish its charter. One such activity could be overseeing a financial audit or other independent assessment of the church’s finances and/or financial business practices.

Membership

Finance Team members should, at a minimum, be active, tithing members in good standing who are completely on board with the church’s philosophy of ministry, especially as it relates to financial decision-making.

All Finance Team members must sign a YOUR CHURCH Nondisclosure Agreement at the beginning of each year of their term. The Executive Pastor keeps these signed Agreements on file.

Finance Team members must have a strong background in finance management, accounting, business management, and/or other areas deemed by the Executive Pastor to benefit the team’s function and purpose.

In the absence of qualified candidates, Leadership Team members may serve as Finance Team members until suitable replacements are found.

The Senior and Executive Pastors identify and nominate candidates for Finance Team membership. They are then reviewed and approved/denied by a majority vote of the Leadership Team.

Team members are asked to serve a three-year term or until a suitable replacement is found.

Team members may be dismissed earlier if the Executive Pastor deems their services no longer helpful or needed by the team. Team member dismissal requires Leadership Team approval.

Authority, Duties, Responsibilities, and Regular Activities

As outlined in this policy, the Finance Team has no authority and is not formally involved in any financial business decisions outside its advisory role.

The Finance Team meets regularly and reviews financial reports and other information as needed to assess the church’s financial health properly. The Executive Pastor prepares reports and other information as needed in preparation for all Finance Team meetings.

As part of every meeting, the Finance Team reviews the church’s Cash Flow Management Strategy and formally determines its recommendation on the current cash flow management “level.” The level recommendation is recorded in the meeting minutes. The Leadership Team may accept or change the recommendation at its sole discretion.

The minutes of all Finance Team meetings are recorded by the team member assigned. All team members review them, and once approved, they are distributed to the Leadership Team and kept on file by the Executive Pastor.

The Finance Team’s recommendations are given to the Executive Pastor, who reviews them with the Senior Pastor. If desired, the Senior Pastor, at his discretion, may submit Finance Team recommendations to the Leadership Team for review, consideration, and, if required, approval.

The Finance Team may also serve with the Executive Pastor in the completion of periodic financial audits.

Dissolution

If, at the discretion of the Leadership Team, the Finance Team is no longer needed, it can be discontinued with or without notice.

The dissolution of the Finance Team will be preceded by a final meeting during which a Finance Team Final Report will be created. The final report will be submitted to the Leadership Team and kept on file should the need arise to create a Finance Team at some point in the future.