Cash Receipts and Disbursements Policy

Home/All Policies, Finance Policy/Cash Receipts and Disbursements Policy

Cash Receipts and Disbursements Policy

XPastor tries to help churches by providing some of the essentials for running a church—items like job descriptions, employment applications, review forms and policies. Below is a Cash Receipts and Disbursements Policy of Westwards Community Church in Jackson, Michigan.

Cash Receipts/Contributions

Westwinds is committed to integrity in the use of any donated funds to the church. Tithes are considered unrestricted. Undesignated offerings are also considered unrestricted. Any offerings designated for a particular ministry or specific purpose will be marked restricted and will be used only by the designated ministry or for the specific purpose for which it was given. Designated funds will only be used for a purpose or by a ministry other than for which it was intended with the express written consent of the donor.

Offerings

  • All cash and check offerings collected during services are to be placed in an offering basket.
  • Staff, ministry leaders, and anyone serving in any capacity in the church are specifically instructed not to receive any offerings. This is for the safety of the donor and the intended intermediary.
  • Offerings that aren’t immediately counted are to be placed in the locked cabinet in the file room. The cabinet and file room door are to remain locked at all times.
  • Offerings are to be counted by at least two and preferably three unrelated people.
  • Any cash or check offerings brought into the office during the week should be received by more than one person present whenever possible.
  • All cash receipts and contributions should be counted by at least two and preferably three unrelated people prior to the bookkeeper receiving and recording the cash. Contributions will be recorded as unrestricted unless they are designated for a specific ministry or purpose.
  • Checks are to be stamped “For Deposit Only” upon being received.
  • Offerings received offsite or during the week need to be placed in a sealed bag with the count.
  • Upon being counted, offerings need to be placed in a tamper-proof bag and carried to the night deposit at the bank.
  • Any solicitations of contributions must be approved by the XP or Coriolis.
  • Offerings received online are automatically deposited into the checking account. The bookkeeper needs to print a report detailing the source of each offering and how the offerings are to be recorded.
  • Offerings received via SecureGive are automatically deposited into the checking account. The bookkeeper needs to print a report detailing the source of each offering and how the offerings are to be recorded.
  • Offerings received via PayPal need to be released by going into PayPal.  These funds are automatically deposited into the checking account upon being released. The bookkeeper needs to print a report detailing the source of each offering and how the offerings are to be recorded.

Offerings received by individual ministries

  • All cash and check offerings collected during services are to be placed in an offering basket.
  • Staff, ministry leaders, and anyone serving in any capacity in the church are specifically instructed not to receive any offerings. This is for the safety of the donor and the intended intermediary.
  • Offerings that aren’t immediately counted are to be locked away securely.  The room in which the offering is secured is to be locked at all times.
  • Offerings are to be counted by at least two and preferably three unrelated people.
  • All cash receipts and contributions should be counted by at least two and preferably three unrelated people prior to the bookkeeper receiving and recording the cash. Contributions will be recorded as unrestricted unless they are designated for a specific ministry or purpose.
  • Checks are to be stamped “For Deposit Only” upon being received.
  • Any solicitations of contributions must be approved by the XP or Coriolis.

Cash Receipts for Sales

The Hub Cash Sales

  • The cash register must be reconciled daily.
  • The money should be counted by at least two people. The cash register reconciliation form must be used to close the register. This form will compare sales from the register tape to cash on hand.
  • The cash register is to be opened only for receipt of money and closing.
  • Money taken from the register at the end of the day/night must be locked securely.
  • Deposits must be made at least weekly and the deposit slips need to be brought to the office to be recorded.
  • Money from sales should be kept separate from money collected for special events. This is in order to help reconcile register sales and the register tape.
  • Weekly reconciliations of sales deposits and inventory and concession supply purchases will be completed. The purpose is to match sales to what is on hand and being purchased for resale. It is intended to be a quick look to be sure the numbers make sense. Variances are noted according to the amount of the variance and who was responsible for the register on that shift.
  • Monthly inventory will be done to match inventory to sales to deposits. A physical count of all concessions inventory will be taken at this time. The weekly reconciliations will be reviewed along with the physical count to ensure there is no loss of product.

Soundwords Sales

  • The cash register must be reconciled daily.
  • The money should be counted by at least two people. The cash register reconciliation form must be used to close the register. This form will compare sales from the register tape to cash on hand.
  • The cash register is to be opened only for receipt of money and closing.
  • Money taken from the register at the end of the day/night must be locked securely.
  • Cash receipts must be reconciled weekly and the money, along with a report detailing how the cash is to be recorded, needs to be brought to the office.
  • Money from sales should be kept separate from money collected for special events. This is in order to help reconcile the funds easier.
  • Weekly reconciliations of sales deposits and inventory and supply purchases will be completed. The purpose is to match sales to what is on hand and being purchased for resale. It is intended to be a quick look to be sure the numbers make sense. Variances are noted according to the amount of the variance and who was responsible for the register on that shift.
  • Monthly inventory will be done to match inventory to sales to deposits. A physical count of all inventory will be taken at this time. The weekly reconciliations will be reviewed along with the physical count to ensure there is no loss of product.

Accounts Payable

  • Payments should be made only with documentation. The sources of documentation are check requisitions, invoices, and statements for which there are no invoices.
  • New vendors need to complete a 1099 prior to receiving payment unless the company is incorporated.
  • All requisitions, invoices, and statements must be approved for payment by an authorized ministry leader.
  • Spending requests for reimbursement should have receipts to substantiate the request. Requisitions for blank checks must include a sufficient description of the payment to be made and an accurate estimate of the amount of the check. These check requisitions should not be filed until receipts are provided.
  • Requisition privileges will be withheld from anyone failing to provide receipts.
  • All approved requisitions, invoices, and statements must be within the authorizing ministry’s budget. Ministries will not be permitted to exceed their budgets without the written consent of the XP or Coriolis.
  • An approved document for payment should be recorded by someone other than the person doing the authorizing. This person should check for the proper documentation and authorization prior to recording the transaction.
  • The printed checks should be signed by two people other than the one recording the transaction. These individuals should also review the documentation to be sure everything has been done appropriately.
  • Requesting the transaction, authorizing the transaction, recording the transaction, and signing the check are to be handled by at least three different people. This separation of duties will help detect errors and help prevent misappropriation of funds.

Credit Cards

  • Credit cards are to be used only for business meals and travel. All other purchases must receive prior approval by the XP or Coriolis.
  • Credit card statements are received monthly. These statements are to be reconciled using the credit card reconciliation spreadsheet.
  • Reconciliations are to be returned to the XP or a designated recipient.
  • Receipts must be provided for every purchase. Purchases for which there is no receipt must have an explanation of the purchase included. Purchases for which there is no receipt may be considered taxable income to the credit card holder. A credit card holder who repeatedly fails to provide receipts may have credit card privileges revoked and further action may be taken.

Reconciliations and Reporting

  • Bank reconciliations should be completed by someone who doesn’t have check writing authority.
  • Monthly reports will be reviewed by the XP.
  • Financial reports are reviewed monthly by the CPA firm and annual financial statements are to be completed by the CPA firm.
By | 2016-10-12T11:00:15+00:00 February 27th, 2013|All Policies, Finance Policy|

About the Author:

XPastor
XPastor is a ministry designed to help Executive Pastors and others in similar roles. Staff and volunteers who make management and leadership decisions in the church will also profit from our articles. We offer articles on our website as well as online courses and our annual XP-Seminar.