LI 2014 BUDGETING Outline - Powerpoint Presentation

Budgeting Principles for
Churches of All Sizes
Kelly Williams and Brent Messick
Welcome and Introductions
Kelly Williams is the Director of Finance & Accounting at Church
of the Resurrection. She was hired in 1995 as the church’s first
Business Administrator. Kelly is serving on the Investment
Committee for the General Council on Finance & Administration,
and is the Chair of the Great Plains Conference Board of Pension
and Health Benefits. She also has served as Secretary of the
United Methodist Association of Church Business Administrators.
Kelly is a graduate of Kansas State University and a Certified
Public Accountant.
[email protected]/913-544-0777
Welcome and Introductions
Brent Messick is the Managing Executive Director of Operations
and Chief Financial Officer at Church of the Resurrection. He
oversees the following ministries: Stewardship and Generosity,
Finance & Accounting, Facilities, I.T., Worship and Event Technical
Production, Human Resources, Catering & Food Services, and the
café and bookstore operations. He currently serves on the Great
Plains Conference Committee on Finance and Administration.
Previously, Brent has over 25 years of business experience, with
his B.A. and M.B.A.
[email protected]/913-544-0772
2. Budget Philosophy
Budget plan and timetable.
Budget targets pre-established.
Maintain ministry, grow, dream.
Contingency planning.
Income-based vs. expense-based.
Balanced budget: op receipts = op exps + cap ex.
10% cash reserve.
3. Operating Receipts
Income Worksheet (Exhibit A).
Projections from annual Stewardship Campaign.
Pledge receipt discount rate.
Operating receipts historical trends.
– Pledge vs. plate %’s.
– Senior pastor summer sabbaticals.
– 4-Sunday vs. 5-Sunday months.
Online giving.
Other Income.
Surplus Reserves.
Special offerings.
Designated funds.
4. Operating Expenses
• Operating Expense Template (Exhibits B1 & B2).
Projected budget guidelines established.
Detailed assumptions documented.
Box 2 – grow, dream.
Box 3 – contingency planning.
• Prepared by ministry directors.
• Staffing – annualize current year adds, raises, new staff,
increases in benefits.
• Iterative process – 2 or 3 drafts.
– Box 2 prioritization.
• On-going monitoring against stewardship pledges.
• Building reserves.
5. Consolidated Budget (Exhibit C)
• Ministry organization (Exhibit D)
6. Budget Review and Approval Process
Bookkeeper, CBA, Treasurer, Financial Secretary.
Senior Pastor and Leadership Team.
Staff Parish Relations Committee – staffing budget.
Finance Committee.
Church Council.
Church Conference.
7. Role of the Finance Committee
• Budget review and approval.
• Changes to the budget during the year.
• Monthly review – actuals vs. budget.
8. Contingency Planning
• Budget Reforecast.
– 6 months actual and 6 months forecast.
– Similar process as annual budget.
– Reforecast becomes new budget.
• Box 3.
– 10% reductions.
9. Monthly Review
• Summary Operating Statement (Exhibit E).
– Balance Sheet.
• Cash Flow Projection (Exhibit F).
• Ministry directors and campus pastors review monthly
financial results.
– Variances reviewed w/ financial mgmt.
– Timing variances.
• Finance Committee.
• Key financial statistics posted on church website (Exhibit G).
10. Recommendations
• Budgeting process for churches of all sizes.
• Budgeting techniques in good times and difficult times.
11. Questions and Answers
12. Workshop Evaluations

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