Financial Good Practice

FINANCIAL GOOD PRACTICE

Guidelines for dealing with cash collections

• Collections should be counted as soon as possible after a service and cash should never be left unattended.
• Two people should count the cash, cheques and envelopes.
• When envelopes are opened the amount should either be recorded on the envelope or against the relevant envelope number on a list.
• Amounts should be recorded in the service register and/or separate sheet.
• Both people counting should initial or sign against the total.
• Cash should be locked in a safe until taken to the bank.
• A similar procedure should be followed when counting cash from collecting boxes.

Budgets

A budget for the year should be presented to the PCC and agreed in December of the previous year.

Quarterly Report

A report of the financial situation showing actual against budget should be presented to the PCC each quarter. This should also include details of all bank balances.

Bank Statements

Duplicates should be sent to someone other than the treasurer who can check on some random items.

Independent Examiner/Auditor

Someone other than the Treasurer should meet with the Independent Examiner/Auditor to go through the audited accounts. Ideally this would be the Standing Committee or Finance Committee of the PCC.

Payments and Receipts

Cheques should be signed by two signatories (all instructions to the bank must also have two signatories). Receipts should back up all payments. Expenses should be paid for actual expenses incurred. Receipts should always be given for any cash received and if possible people should be encouraged always to pay by cheque.

Tax Efficient Giving

The Gift Aid rules allow any Church that receives donations, whether one-off or by instalments, to recover a further 28p in every £1. The donations must be from UK taxpayers and the Church should obtain - and keep in a safe place - a 'declaration' from each donor. This is a one-off form that needs to signed once only. It states that a donor wishes his or her giving to be tax efficient and that he or she is a UK taxpayer.

Stewardship

It is important that people re-consider how their Christian faith is reflected in their commitment to their church at least once a year. At that time they should be encouraged to make an annual pledge covering both the amount they are able to give regularly to the church and use of their time and gifts.