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ST JAMES EPISCOPAL CHURCH

COMPREHENSIVE FINANCIAL PLAN

September 2013

ST JAMES COMPREHENSIVE FINANCIAL PLAN

September 2013

Approved by the Finance Committee August 14, 2013 Approved by the Vestry September 17, 2013 1

I. Purpose The purpose of the St. James Episcopal Church Comprehensive Financial Plan is to provide

guidance and direction for all clergy, staff and parishioners of St. James Episcopal Church in

their financial dealings with and for St. James Episcopal Church (herein referred to as the

Parish).

II. Episcopal Church Canons’ Guidance The Canons of the General Convention and the Canons of the Diocese of Western North

Carolina provide general guidance in the area of individual church finance, but provide few

specifics. They do state that the Vestry’s duty is to take charge of the property of the Church, to

regulate all the Parish’s temporal concerns, and to provide for paying all lawful assessments on

the Parish. Additionally they require the Parish to get Diocesan approval before selling any

property of the Church.

III. Fund Accounting All money contributed to the church must be accounted for and properly controlled to maintain

the trust of the donors. To assure that contributions are used for the purposes intended by the

donors, funds are separated into two basic categories, General and Restricted. All accounting

will be in accordance with General Accepted Accounting Principles (GAAP) and Financial

Accounting Standards Board (FASB) Accounting Standards Codification 958.

A. General Funds

The General or Operating Fund is used to hold and control all contributions for the day-to-day

operation of the church. These funds come primarily from the regular contributions of the

members through pledge and plate contributions. Any unrestricted or undesignated contributions

would be added to the General Fund. The expenditure of General Funds is controlled by the

annual budget as approved by the Vestry. These funds are considered revenue when received

and as expenses when spent.

B. Designated Funds

Designated Funds are those monies set aside for future use under the control of a specified

group, usually the Vestry. These funds are listed as a liability of the church until the controlling

group designates their final use.

C. Restricted Funds

Restricted Funds are those contributions, designated by the donor, to be used for a specific

ministry or purpose. Separate accounts will be established within each category to insure that

each gift is properly recorded as received and is used for its intended ministry or purpose. There

are two categories of Restricted Funds, temporary and permanent.

1. Temporary Restricted Funds

Temporary Restricted Funds are contributions for a particular ministry such as the Memorial

Garden Fund. Those funds can only be used to cover expenses relating to that ministry, in this


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case, the Memorial Garden. These funds are counted as a liability of the church until they are

used for their designated purpose.

2. Permanently Restricted Funds

Permanently Restricted Funds are normally larger gifts that usually carry a permanent restriction

that the corpus of the gift be invested and only the earnings or some portion thereof can be used.

Additionally, these earning are often restricted as to their uses.

IV. Income There are several sources of income, some annual, some as a result of fund-raising efforts, and

some as unique gifts for general or specific purposes.

A. Pledge Income

Annually, in the fall, there will be Stewardship Drive. The drive will solicit pledges from the

parishioners for the forthcoming calendar year. These pledges will make up the major, but not

the only, source of income on which to base the Annual Budget. As new members are added to

the rolls of the Parish, they should be contacted and encouraged to make a pledge to the

Operating Budget.

B. Regular Non Pledge & Loose Plate Offerings

Non-pledge income is money in the offering plate where the donor can be identified but has not

pledged or designated the purpose of the offering. Loose plate refers to cash. Each Sunday’s

non pledge and loose plate offering will be added to the Operating Income, except for those

Sundays when the loose plate offering is designated by the Vestry for a specific purpose.

C. Investment Income

There are some investments held by the Parish that generate income for the Operating Budget.

The Parish Administrator will make estimates of that income, for the annual Budget

development.

D. Fees

Fees may be charged for rental of the facilities for such activities as weddings, meetings, etc. The

Rector or Parish Administrator will approve requests for waiver of the fees, excluding the

Memorial Garden, on a case-by-case basis. A fee schedule will be developed by the Parish

Administrator, reviewed and recommended for approval by the Finance Committee, and

approved by the Vestry. Fees may be charged for burial in the Memorial Garden, These fees will

be added to the Memorial Garden Fund.

E. Grants

All grant requests submitted under the name of St James Episcopal Church will be reviewed and

approved by the Rector and Parish Administrator before submission. Grants in excess of

$10,000 will require approval by the Vestry before submission. All Grants requiring matching

funds or in-kind donations will require Finance Committee recommendation and Vestry approval

before submission. Grants submitted in parts will be treated as a whole when considering the

dollar threshold.


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F. Fund Raising

All money raised by Parish organizations must be entered in the records of the Parish and

included in the Annual Parish Report. All fund raising activities are to be approved by the

Vestry, since such activities may involve some commitment of church funds (either at the time or

in the future). Fund raising activities may be in support of the operating budget, capital fund

projects, or special projects. An Annual Fund Raising Calendar will be prepared in conjunction

with the annual budget. Each ministry will submit their fund raising schedule requests as a part

of their budget request. The Finance Committee will submit the calendar along with the

proposed budget for Vestry approval.

G. Gifts

From time to time, there will be gifts or bequests to the Parish. Some will be to support the

General Fund, some specific purpose and will be recorded as restricted funds. These will be

handled in accordance with the wishes of the donor except that no gifts will be received that are

intended for a specific individual. If the gift is designated for use in covering operating

expenses, the Finance Committee will provide a recommendation to the Vestry who will make

the final determination as to the disposition of the gift. If the gift is a restricted fund, separate

accounts may be established to assure compliance with the giver’s wishes.

H. Bequests

The most common manner in which a gift is likely to be made to the church is through a bequest

as part of an estate.

I. Donations from Parishioners

Parishioners, recognizing or perceiving a need in the Parish, may offer to make a donation, in

monies or in kind, to the Parish. The evaluation of this gift and its restrictions is the

responsibility of the gift evaluation committee of the St James Episcopal Church Foundation or

in its place, the Finance Committee.

J. Processing of stocks

Any stock given to St. James as a gift, a payment or partial payment of a pledge, etc. shall be

transferred to the St. James agent for stock transactions who shall be directed to immediately sell

all shares at market price unless there are compelling reasons to defer the sale. Any such deferral

must be approved by the Finance Committee who will set a schedule for periodic reviews of the

transaction.

K. Specific Existing Funds

There are several specific funds that have been created through the generosity of individuals for

the use of the Parish. The Finance Committee or the St James Episcopal Foundation as

authorized by the Vestry will administer these funds.


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1. The Ballard Fund – Permanently Restricted

When the Fund reaches $100,000, income only shall be distributed as financial aid for

necessaries of life to qualified St. James parishioners over 62 who are without resources.

2. The Blausey Fund – Permanently Restricted

The fund originated from a bequest in the amount of $205,465 by Earnest Blausey in 1994. In

his will he directed that only the income from the fund could be used. He designated that the

income would go in thirds to the Rector's Discretionary Fund, Capital Improvements and the

Music Program. The fund is currently invested at First Citizens Bank.

3. The Cox Fund - Designated

The fund originated from a bequest of Harold Cox in 1999 in the amount of $209,976. The gift

was unrestricted. A portion of the gift was used to purchase the Cox House on Grove Street.

The Vestry has designated the remaining balance to be held for use at its discretion. It is

invested with First Citizens

.

4. The Vestry Designated Fund

These funds originated from a number of small bequests. They have been designated by the

Vestry for use at its discretion. It is invested at First Citizens.

5. St. James Charities Fund -

This fund originated from a 2002 bequest of $42,000 from the Elizabeth Godbold estate to St

James Charities Foundation. It is invested at First Citizens.

.

6. St. James Episcopal Church Foundation Fund

The Foundation was established to oversee the administration and investment of endowments as

authorized by the Vestry and to encourage and support planned giving. The funds are invested at

First Citizens.

7. Earle Stillwell Fund

This fund was established in 1990 from a bequest of Earl Stillwell in the amount of $930,038.

No stipulations or restrictions were placed on the gift by Mr. Stillwell. In 1990 the funds were

placed with the Community Foundation for their management. The donation was designated by

the Vestry to be first used to pay off the existing indebtedness of the church (90%) and for St

James Charities (10%). After that debt was liquidated the income was to be used for St James

Charities (90%) and the discretion of the Vestry (10%).

8. St James Charities Endowment Fund

This fund was established in 1990 from a portion of the Stillwell endowment ($102,623)

combined with a tithe from the Master (Building) Plan ($80,667). These funds were placed with


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the Community Foundation in 1990 the income from which is to be distributed by St James

Charities.

9. St James Endowment Fund

This fund was established from as "seed money" to encourage other donations to the

Endowment. No additional contributions have been made.

V. Budget Process While St. James Episcopal Church provides spiritual guidance and growth opportunities, it must

be recognized that in many respects the Church is also an organization whose parishioners, its

primary income source, expect the handling of its income sources and expenditures to be

properly and responsibly conducted. The development of an Annual Budget is a key element for

the expenditure side, just as the annual pledges, normally through the Annual Stewardship Drive,

are a key element in the identification of annual income. The Annual Budget establishes

priorities and allows for the responsible monitoring of the cash flow of the church’s day-to-day

activities.

A Proposed Budget derived from budget request submitted by the individual ministries using the

Budget Worksheet and Instructions attached to this plan will be compiled into a draft budget by

the Parish Administrator and presented to the Finance Committee. The Finance Committee will

review, adjust as necessary and the Finance Committee and Vestry will meet in joint session

prior to the Vestry’s normal November meeting to review the proposed budget in detail. The

Vestry will vote on the proposed budget at the November meeting. The approved Budget is to

then be made available to the Parishioners at the Annual Meeting.

VI. Control of Disbursement Disbursement of monies from the general fund shall be in accordance with the approved Annual

Budget. The Financial Administrator, under the Supervision of the Parish Administrator, shall

make disbursement.

A. Authorization

For each budget account, there will be one designated individual by title or name responsible for

authorizing all expenditures and remaining within the budget for that account. Those individuals

will receive a monthly report from the Parish Administrator of the status of the budget items for

which they are responsible. In some areas, individual accounts can be aggregated and controlled

at the bottom line, for example, administration. So long as the bottom line is within budget, no

action is required. Routine items such as salaries, insurance, billings for electricity, water, gas,

trash pickup, etc., and billings for specific authorized services require receipts, but no additional

approval.

If it becomes apparent that a line item is underfunded or a new need is identified, the responsible

individual must notify the Vestry and Finance Committee as soon as possible. No expenditure in

excess of the budget may be approved without the prior concurrence of the Vestry.


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B. Emergency Expenditures

In the event of an emergency requiring an immediate response, the Rector, Senior Warden, or

Parish Administrator may initiate corrective action and inform the Vestry as soon as practical.

C. Reimbursements

Reimbursements for expenses incurred shall be made based on a Request for Reimbursement

form that includes the appropriate receipts and the approval in writing of the appropriate

Committee/Program Chairperson.

D. Check Signatures

Normally, only a single signature is required on all checks. However, two signatures shall be

required on all checks in excess of $1,000. Those authorized to sign the checks include the

Church Treasurer, the Senior Warden, the Junior Warden, and Parish Administrator.

E. Business Practices/Agreements

When arranging for goods and services, determine whether the agreement should be in writing

by exercising good business practices. This would certainly apply to agreements for construction,

remodeling, roofing, provision of significant materials, regular landscaping, tree removal (get a

bond!), significant plumbing or custodial services, etc. When in doubt, err on the side of a

written agreement in order to avoid misunderstandings later. Only the Parish Administrator or

the Senior Warden is authorized to sign written agreements for the Parish. Written agreements

must cover cost, schedule, quality, materials, scope of the work, documentation of liability and

workers compensation insurance coverage, and the procedure for implementing change orders.

Recusal of interested parties in the decision process is standard practice for all organizations.

F. Bid Requirements

Any purchase of over $3,000 shall require no less than two competitive bids. Projects cannot be

broken down into components to evade this requirement. In case of sole source providers and

emergencies where competitive bids cannot be obtained, the Executive Committee can bypass

this requirement.

G. Business Dealings with Members of the Parish

In instances where the parish needs goods or services that a member of the congregation wants to

provide, transactions must be handled with caution and must be negotiated at “arm’s length”

because of the potential impact on the relationships involved. Policies apply to everyone.

Avoiding conflict, rumor, and misunderstanding later is best achieved by being very clear about

expectations up front and ensuring that no one feels pressured by the threat that personal

relationships could be at stake. It is highly inappropriate for anyone to make acceptance or

rejection of such an agreement “personal” or to resist implementing these policies on the grounds

that they show a “lack of trust” or “ingratitude.”

H. Payment of Personal Expenses

General funds may be used to pay for training, conference, seminar, or convention fees for

parishioners attending these functions as representatives of or at the request of St. James.


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However, no general funds shall be used to pay personal expenses (travel, meals, lodging, etc.)

for any member of the parish without the specific approval of the Vestry This restriction does not

apply to paid staff members attending functions authorized by the Rector as part of their duties.

VII. Investment of Operating Funds Investment of Parish Investment funds shall be under the direction of the Treasurer or Parish

Administrator with the oversight of the Finance Committee. Reports shall be made to the

Vestry, at least quarterly, on the status of the various investments of the Parish monies.

VIII. Audit An accounting firm not connected to the Parish shall audit the Parish accounts at least one out of

every three years. In years where an audit is not performed, a review of the Financial Statements

by an outside accounting firm will be completed. The audit or review shall be presented to the

Finance Committee who shall receive the audit. The Finance Committee shall then report the

results of the annual audit to the Vestry, including any recommendations the Finance Committee

deems appropriate.

IX. Financial Relationship with the St James School for Little Folks Finances are an ongoing concern of any institution and because the Church and its Vestry are

ultimately responsible for the School clear responsibilities for expenses need to be established

for both parties.

The School is expected to be able to support its programs through tuition and fees collected

investment income, grants, reimbursements and outreach contributions.

The Church will provide the School with the use of its buildings and facilities at no cost. The

Church will also pay for all school water, sewage, natural gas and electrical utilities. The Church

will include the School in its liability and building and contents insurance policies at no cost.

The Church will be responsible for the maintenance of the building structure, including all in-

wall plumbing and electrical services.

The School will be responsible for the maintenance of all wear and tear on paint, floor coverings,

internal plumbing fixtures, window covering, storage cabinets, counter tops and appliances.

Where there are extraordinary expenses that arise that are outside the guidelines (gray areas),

such as government mandated changes to structures or fixtures, the Vestry will make the final

decision on cost allocation based on recommendations from the School Board and the Church

Finance Committee.

These guidelines should be reviewed on a yearly basis by the School Board and the Vestry to

assure they remain viable.

There may be situations concerning Church finances that are not covered by the guidance

provided in this Plan. In these situations, the Senior Warden, with the advice of the Rector, the

Parish Administrator, and the Junior Warden, shall determine what actions need to be

accomplished.


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Budget Worksheet Instructions

The budget package you received contains the following:

A sheet detailing what has been spent thus far this year

A worksheet to use to determine how much is being requested next year

An example of a completed worksheet

These instructions

First and foremost – We recognize that this approach is different from prior years. This change

is being made so that you have the ability to request funding for what is important to your

ministry. So before you begin completing the worksheet take the time to think about what this

ministry wants to accomplish in the upcoming year and what is needed to make that happen. If

you need any help in understanding the information you have, or need any additional

information, or need anything please call the Parish Administrator. We are committed to making

this a positive experience.

Filling out the Worksheet

1. Complete the top block of information. The contact person should be the one who know

most about what the ministry wants to accomplish and what is needed to make it happen.

2. The bottom block is where you list what you want to use the fund you request. The

amount of detail you need depends on what you are requesting. In the example given you

will see that the van will have 2 oil changes at $50 each for a total of $100. We also

know that the van will need some repairs in 2011 we requested $250 to cover them. We

don’t know what the repairs will be, but we know some will be needed. If you are

requesting funds for something new, please identify them separately from the ongoing

ministries.

3. If you have any questions about this process or need additional information please call

either David at 694-6927 or Pauline at 694-6928. If you would like us to help you put

your request together call us for an appointment. We want this to be a positive and

meaningful experience.


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Fund Raising Schedule: Those ministries conducting any fund raising activities during the next

year must submit a fund raising schedule to include the name, purpose, and schedule dates for

those activities along with their budget worksheet.

What happens after you submit your request – The Finance Committee will review all the

requests and depending on the amount pledged will recommend the full amount or a reduced

amount in the budget it submits to the vestry. The committee will submit an Annual Fund

Raising Calendar with the recommended budget. The vestry has the final say on the budget and

the approval of fund raising activities. Once the vestry approves the budget you will be advised

of the amount available for the next year.


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St James Episcopal Church

Budget Request Worksheet for 2014

Account Number and Name

Star Point / Liaison

Who to Contact With Questions

Phone Number

Current Year Budget

Next Year's Estimated Spending

We are requesting funding for the following in 2014

Description Amount

Total Requested

Submit requests to the Parish Administrator


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Request for Inclusion in the Fund Raising Calendar

St James Episcopal Church is first and foremost a place where its congregants come to be spiritually refilled and refreshed so they can go out into the world to fulfill the mission God has given them. In order to minimize distractions from this central purpose, the Vestry requires all organizations that wish to place an ask before the congregation to get its approval and addition to the parish's fundraising calendar. The intent is not to preclude the asks, but to maintain a holy and spiritual presence. Please fill out this application and give it to David Marshall.

Requesting Organization:

If Outside Organization - St James Sponsoring Committee:

What will the funds be used for?

St James Contact Person, Phone Number, Email:

Proposed Dates and/or Schedule

Describe Campaign

What Internal Publicity You Are Requesting?

What Resources of the Parish Will You Require?

Approved by the Vestry:

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