The purpose of this policy is to establish and communicate the Finance Team charter as set forth by the church’s Board of Elders.
The Finance Team is formed and empowered by the Board of Elders to function as a team of subject matter experts in the accounting and finance area regularly reviewing the church’s financial status, advising the Executive Pastor. To this end, this policy includes specifics related to the scope and function of the Finance Team.
It is the responsibility of the Executive Pastor, reporting to the Senior Pastor to implement and follow the specific guidelines and operating parameters outlined in this policy. The primary responsibility for this policy rests with the Executive Pastor.
The Finance Team exists to regularly review the church’s financial status and financial business practices/processes as an advisory board to the Executive Pastor in his/her role as CFO of the church.
The Finance Team is also a sounding board for the Executive Pastor as needed in his effort to pursue improved financial business practices, reporting, and decision making.
Additionally, the Executive Pastor and Finance Team may be called upon by the Board of Elders to review a contract or proposal requiring the church to make a significant, long-term financial commitment such as a loan or other contract.
The Executive Pastor functions as the leader (chairperson) of the Finance Team and is the only permanent member of the team.
The Executive Pastor may, at his/her discretion, assign members of the Finance Team to lead specific projects or other activities performed by the team in the accomplishment of its charter. One such activity could be the oversight of a financial audit or other independent assessment of the church’s finances and/or financial business practices.
Finance Team members should, at a minimum, be active, tithing members of the church in good standing, completely on board with the church’s philosophy of ministry, especially as it relates to financial decision making.
All Finance Team members are required to sign a church Nondisclosure Agreement at the beginning of each year of their term. These signed Nondisclosure Agreements are kept on file by the Executive Pastor.
Finance Team members must have a strong background in financial management, accounting, business management, and/or other areas deemed by the Executive Pastor to be advantageous to the function and purpose of the Finance Team.
In the absence of qualified candidates, members of the Board of Elders may serve as Finance Team members until suitable replacements are found.
Candidates for Finance Team membership are identified and nominated by the Senior and Executive Pastors and are reviewed and approved/denied by Board of Elders vote.
Team members are asked to serve a three-year term and 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 Board of Elders approval.
Authority, Duties, Responsibilities, and Regular Activities
The Finance Team has no authority and is not formally involved in any financial business decisions outside the team’s advisory role as outlined in this charter.
The Finance Team meets on a regular basis (usually monthly) and reviews financial reports and other information as needed to properly assess the financial health of the church. 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 for that meeting. The Board of Elders may accept the recommendation or change it either way at its sole discretion.
Minutes of all Finance Team meetings are recorded by the team member assigned for that meeting, are reviewed by all team members, and once approved are distributed to the Board of Elders and kept on file by the Executive Pastor.
Recommendations by the Finance Team are given to the Executive Pastor who reviews them with the Senior Pastor. If desired and/or necessary the Senior Pastor, at his/her discretion, may submit Finance Team recommendations to the Board of Elders for review, consideration, and if required, approval.
The Finance Team may also serve with the Executive Pastor in the completion of periodic financial audits.
If at the discretion of the Board of Elders the Finance Team is no longer needed, it can be discontinued with or without notice.
Finance Team dissolution will be preceded by a final meeting during which a “Finance Team Final Report” is created. The final report will be submitted to the Board of Elders and kept on file should the need arise for the creation of a Finance Team at some point in the future.