Report of the Finance Task Force

At the special budget meeting on June 25, 2006, the congregation of First Parish Congregational Church, UCC, called for the formation of a group to examine the financial operations of the church.  In response, the Council formed a Finance Task Force in the Fall of 2006, and named Ben Crosby, Bill Mann, Warren Leuteritz, Lisa Rick and Heidi Webster as members.  The Task Force met and interviewed twelve (12) individuals in positions that manage, have access to, or provide direction over the assets of the church.  These interviews identified strengths and weaknesses that exist in the current operations of the church’s financial processes.  The review of the financial operations of the church is now complete and the Task Force is submitting this report to the Council for consideration.

Given the current financial shortfalls existing within the finances of the church, and given the impact of the seriousness of such condition; in concert with the fact that a Master Plan for the financial operations of the church does not currently exist, the Task Force recommends a Board of Finance be established.  Such committee should be composed of key leadership to impart to the congregation that the managers of the affairs of the church take seriously the financial condition of the church and are committed to the remedy of said condition.

Proposal:
The Finance Task Force proposes that a Board of Finance be created and implemented to operate as outlined below.  Concurrent with its creation, the existing Investment Committee, Audit Committee, and Memorials Committee are to be abolished and their responsibilities performed and/or managed by the Board of Finance.  The Board of Finance shall interact with the Council and any or all of the Boards and Committees of the church to ensure the financial health of the church.

BOARD OF FINANCE:
Number of Members:  7
Comprised of: Assistant Moderator of the Church (Chair of the Board)
Treasurer
Assistant Treasurer
Representative from the Stewardship Board
Members at large (3)
Length of term:           Assistant Moderator, Treasurer, and Assistant Treasurer as determined by current by-laws for said positions.  The representative from the Stewardship Board shall serve at the discretion of the Stewardship Board.  The members at large shall serve a three year term.  The initial members at large shall be elected for a one year, two year and three year term respectively.

Term limit:      Assistant Moderator and at large members – 2 terms

Conditions of Term:    1 at large member elected each year; cannot be re-elected for 1 year after serving 2 full terms

Purpose:          To oversee the financial life of the church, prepare and monitor approved annual budgets, audit the books of account of the church, and manage the investments of the church.

Responsibilities:          

• Prepare a proposed budget for the church for presentation to the Council each year.
• Prepare monthly financial statements of the financial condition of the church in accordance with Generally Accepted Accounting Principles and submit same to the Council.
• Review the investment of church funds to maximize the earnings thereof, in conformity with prudent investing practices as the Council may suggest.  The Council shall confirm any change in the investments or investments strategy as presented to it by the Board of Finance.
• Provide quarterly investment reports to the Council and annually to the congregation.
• Manage all bequests in accordance with any conditions of such bequest.
• Ensure that all bequests and memorial gifts are acknowledged.
• Provide recommendations to the Council for the disposition of monies acquired from bequests and memorial gifts.
• Perform the audit of the books of account of the church and report the results of such audit to the Council.  The Treasurer and Assistant Treasurer will not perform audits of their own books of record.
• Develop and direct an ongoing long range financial plan for the church encompassing the needs of daily operations, facilities maintenance and enhancement, and any other matter the Board of Finance may deem prudent.
• Propose to the Council any items of financial policy as the committee shall deem appropriate for the sound financial operation and health of the church.
• Perform any other duties the Council may suggest and/or the Board of Finance may propose to the Council and the Council shall affirm.

Reports to:      Church Council.

Additional Items for Action and/or Review:

During the review and interview processes undertaken by the Task Force, it became apparent that some additional measures should be implemented to improve the overall financial process of the church.  The following items are recommended by the Task Force to assure better control of financial records, to provide increased protection for the individuals holding positions that handle funds of the church and to improve financial security of the church.

• The Board of Finance, if implemented, should work with the Council to develop a Financial Master Plan for the church.
• A member of the Stewardship Board should make a presentation to each new member class regarding the responsibilities of pledging to the financial support of the church and solicit pledges from all new members.
• The Assistant Treasurer and/or Assistant to the Assistant Treasurer should collect, count and document the loose cash offering each Sunday in the presence of one other member of the congregation not related to the Treasurer and/or Assistant Treasurer.
• Detailed financial reports of the monthly financial activity for each Board and/or Committee of the church should be kept in the church office so that copies may be readily available for review.
• A policy should be established for the handling of funds from memorial gifts and bequests.
• All financial records should be filed in the church office and back up copies of all electronic data maintained in separate locations.
• An early action item for the Board of Finance, if implemented, should be the review of the policy related to fundraising activities within the church to ensure clarity and consistency.