Banking - Signing Authorities, Online Banking & Credit Cards

This blog is going to be a three-in-one post.  They're actually three different topics but they are all linked by one common denominator.  That is, the policy that all disbursements made by the church are required to have 2 signatures for approval.

All bank accounts should be set up with at least 3 signing authorities.  This can be the pastor and 2 or more other people.  They can be council members and/or administrative people.  There should never be signors on the account that are related (ie pastor and spouse or family member).  All cheques are to be signed by two authorized persons.  Administration Manual Tab 5, Part 4.4,5

For convenience cards (online banking/debit cards) transactions, the 2 signature policy is also in effect.  This means that convenience cards can be set up for deposits, online inquiries, and online bill payments (with approval).  However, these cards should not be set up with debit capabilities as this bypasses the signature policy.  In this case, the purchases still needs to be made by the individual and then claimed for reimbursement.  This will also help prevent funds from being expended that have not been first approved.

For this same reason, the church should not take on the responsibility of debt incurred for the personal credit cards of council members, pastors or staff for church expenses.  Purchases are to be made with prior approval and submitted for reimbursement and supported with receipts.  See Adminstration Manual: Tab 3, Part 4.0, #15; Tab 4, Part 4.4; Tab 4, Part 5.2, #6 

In our day of modern convenience and the need to simplify its very easy to overlook the importance of a policy like this.  However, the extra effort and inconvenience is worth it.  Not only does it give credibility and integrity to the accounting system of the church and ensure that funds are being spent for their intended purpose.  But, most importantly, it protects those very people who so faithfully serve the church in this capacity.  From those who count the offerings to the bookkeeper, and from the council to the pastor.  One small thing can protect so many....



Useful Quote of the Day:
Worship is giving God the best that He has given you. Be careful what you do with the best you have. Whenever you get a blessing from God, give it back to Him as a love gift. Take time to meditate before God and offer the blessing back to Him in a deliberate act of worship. God will never let you hold a spiritual thing for yourself; it has to be given back to Him that He may make it a blessing to others.

 
Oswald ChambersMy Utmost for His Highest