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The goal is to keep the vestry and parish informed about the status of finances in the parish and to alert them to potential cash flow shortages before they occur.
• Keep it simple
• Keep it consistent
• Keep it focused on what is important to making decisions
• Think of it like you do your own finances!!
Below are a set of standards for your reports:
General:
• Monthly in time for distribution to the vestry prior to their meeting.
• Compare to same point last year
• Use same format from month to month and year to year
Balance Sheet:
This is not your Auditor's Balance Sheet
• Assets should include cash, investments reconciled to most recent statement
• Can exclude fixed assets
• Liabilities need to show any unpaid bills for the prior month
• Exclude loans if paid on time
• Fund balance is the difference between Assets and Liabilities
• Shows how much is unrestricted, designated and restricted
• Unrestricted or operating - funds to run your day to day operations
• Designated - funds set up by vestry for a specific purpose
• Restricted - donor defined with a legal document
Income statement and Budget to actual
• A budget is a plan approved by the vestry
• Include your loan payments as monthly expenses in the plan
• Each month compare actual results to the "plan" or budget
• Keep operating income and expense separate from designated and restricted income and expenses
• Compare this year to prior year to where changes are happening
Questions to ask each month
Do we have enough operating cash to pay bills on time?
Are we using designated or restricted funds for operating expenses?
Are any investments in good quality sound choices?
Are we getting behind in income?
Do we need to revise our plan?
If these were my finances, would I be feeling OK?
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