Basic Finance Control Policy

BASIC FINANCIAL CONTROLS POLICY

Rutland Street Church

1. Purpose

What is given to Rutland Street Church is given in trust for God's purposes. These controls protect the church, its leaders, and its donors by ensuring that finances are handled honestly, transparently, and wisely. They are not bureaucratic — they are an expression of good stewardship proportionate to the size and structure of a small, volunteer-led church.

2. Receiving Offerings and Donations

• Sunday offerings are always counted by two people together — never by one person alone
• Both counters sign and date the count record
• Cash should be banked as soon as practicable — the same day or the next working day
• Online giving goes through a dedicated church bank account only
• Donation receipts must be issued for all donations of $5 or more, so donors can claim their tax rebate

3. Payments and Expenditure

• Any significant expenditure over $[amount, e.g. $200] must be approved by an elder before it is committed
• No one may approve their own expenses — a second person must authorise all reimbursements
• Receipts must be kept for all expenditure
• Payments should be made by direct bank transfer wherever possible
• Church funds may not be lent to individuals

4. Bank Account

• Bank transfers above $[threshold] require two authorised signatories
• Signatories should be elders — not the same person as the bookkeeper
• Online banking credentials should be known only to the authorised signatories
• Bank statements are reviewed by an elder at each elders' meeting

5. Bookkeeping and Records

• A simple record of all income and expenditure is maintained
• Bank accounts are reconciled monthly against records
• Financial records must be retained for at least 7 years — IRD requirement
• Basic financial reports are presented to the elders at each meeting

6. Annual Reporting to Charities Services

As a registered charity, Rutland Street Church must submit an Annual Return to Charities Services (charities.govt.nz) within six months of its financial year end. This includes a performance report. The reporting tier depends on your annual expenditure:

• Under $140,000 total expenditure — Tier 4 reporting (simple format)
• $140,000–$2 million — Tier 3 reporting (more detailed; independent review required)

Missing the deadline puts your charitable status at risk. An Annual Return Checklist for small charities is available at cccnzrl.org.

7. Separation of Duties

Where possible, different people should handle different parts of the financial process. The person who receives donations should not be the person who reconciles the bank account. In a small team this may not always be achievable — but the principle should guide how you set things up.

8. Review

These controls are reviewed annually by the elders. Any significant financial incident or concern should be addressed at the next elders' meeting and documented in the minutes.

For more detailed financial policies, credit card guidance, and budgeting templates, see cccnzrl.org.