Grace San Diego

Grace Church San Diego - Financial Governance Policy

Article I Purpose

This policy shall provide a governance framework for Grace Church San Diego finances and assets and must be signed any principal officer, executive director, or member of a committee with governing board delegated powers, who has a direct or indirect financial control over Grace Church San Diego accounts, assets and related records.

Article II Governance Policies

1. Financial reports will show a rolling monthly total of expenses to budget for each budgeted account and sub account.
2. The Elders will be provided hard copies of bank statements for all accounts, all credit card statements and Quickbooks transactions by account, showing individual transactions on a monthly basis attached to financial reports. (a)
3. All salaries and payroll expenses will be included in the monthly financial reports broken down by staff member. (a)
4. Executive staff compensation including but not limited to salaries, cost of living increases, raises, bonuses, gifts and honorariums, will be approved by a vote of the board and cannot be changed without board approval. (b)
5. Non-executive staff compensation including but not limited to salaries, cost of living increases, raises, bonuses, gifts and honorariums will be approved by a vote of the board and cannot be changed without board approval.
6. Hiring packages and moving expenses for new employees will be approved by a vote of the board.
7. An independent financial audit will be performed each year to provide transparency, ensure that financial governance processes are being followed and to provide a mechanism for feedback on how managing the church finances might be improved.
8. Expenses will not be paid from designated accounts that cannot be reconciled back to an approved budgeted account number. Any expense paid out of a designated account must be approved by a vote of the board.
9. All purchases must be for the purpose of the ministry and there will be a documented policy on what is an acceptable and unacceptable purchase with church funds.
10. The board will approve the purchase order policy.
11. The Chairman of the Board and CFO (Chief Financial Officer) or Treasurer, will be signatory on all accounts and have online account access to all accounts.
12. Any expense of $5000 or greater must be approved by the board and require a second signature by the CFO or Chairman.
13. Any 3^rd party financial company or individual handling Grace San Diego financial interests including but not limited to financial agents, book keepers, financial services companies, accounting firms, auditors and banks must be approved by the board.
14.  The Grace Church San Diego Financial Governance Policy shall be a living document.  Any changes to the Grace Church San Diego Financial Governance Policy must be approved by a vote of the board.  In compliance with the Grace SD Conflicts of Interest Policy, any changes to the Grace SD Financial Governance Policy, any vote on financial governance changes affecting salary decisions, salary disclosure or other topics identified as a conflict of interest to specific board members, will be made excluding the vote of the board member identified as having a gain or benefit in the outcome of the policy change.

Article III Records Retention and Disposition

1. Permanent Records Retention Schedule
   1. a.     Corporate records and documents such as articles of incorporation, bylaws, annual corporate reports, corporate seals, minute books, signed minutes of the Board and all committees
   2. b.     Licenses and permits
   3. c.     Property records and documents such as property deeds, assessments, and rights of way
   4. d.     Property Insurance policies
   5. e.     Audit reports
   6. f.      Financial Statements
   7. g.     General Ledgers
   8. h.     Contribution records
   9. i.      Documents evidencing terms, conditions, or restrictions on gifts
   10. j.      Tax-exemption documents and related correspondence
   11. k.     IRS rulings
   12. l.      Tax returns-income, franchise, property
   13. m.   Annual Information returns-federal and state
   14. n.     IRS or other government audit records

1. Temporary Records Retention Schedule

      The retention period for the following documents and records is 7 years unless otherwise stated.

1. a.     Accounts payable and accounts receivable ledgers and schedules
2. b.     Bank statements and canceled checks
3. c.     Notes receivable ledgers and schedules
4. d.     Employee expense reports
5. e.     Investment records (7 years after sale of investment)
6. f.      Annual audit records, including work papers and other documents that related to the audit (7 years after the completion of the audit)
7. g.     Contracts and related correspondence (7 years after expiration or termination; however, some states may require longer retention period for specific types of contracts: Consult a local attorney.)
8. h.     Excise tax records
9. i.      Tax bills, receipts, statements
10. j.      Tax work paper packages-originals
11. k.     Sales/use tax records
12. l.      Payroll tax records
13. m.   Payroll registers
14. n.     Personnel records such as commissions, bonuses, incentives, and awards
15. o.     Payroll documents such as: payroll deductions; W-2 and W-4; and garnishments, assignments, attachments. (Termination plus 7 years)
16. p.     Employee personnel records and Time cards/sheets -(6 years after separation)

(a). CA Corporations Code 9510-9514 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=09001-10000&file=9510-9514

(b) IRS Governance and Management Policies http://www.irs.gov/pub/irs-tege/governance_practices.pdf and Grace Church San Diego Conflicts of Interest Policy

I have read and understand the Financial Governance Policy.

Full Name:__________________________________________            Position:________________________________

Signature:___________________________________________            Date Signed:_____________________________

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