Bank Accounts for Committees
Policy & Procedures
Approved by UUFD Board of Trustees 1/18/04
THE NEED FOR A SEPARATE ACCOUNT
UUFD has a checking account for the operating fund and the building fund. If a group or committee expects to conduct a significant amount of financial activity, it may be difficult for the treasurer to manage those transactions intermingled with the usual income and expenses of the fellowship. A separate account will isolate that activity and allow the individuals involved to do the work necessary to manage the group’s money. Remember, though, that banks typically require minimum balances and my have service charges. Your committee will be responsible for maintaining adequate records, which will examined periodically by a representative of the Board of Trustees.
OPENING THE ACCOUNT
a. Before opening an account, present a proposal to the board explaining your reasons for needing a separate account. UUFD’s existing accounts are with National Bank and Trust (NB&T), so that is the best choice for new accounts.
b. Provide a copy of the new account information form and signature card to the treasurer, for the church files.
c. Set up checking accounts requiring that each check be signed by two people. You will therefore need at least three authorized signers on the account. At least one should be a board member.
d.The account should be in the name of the fellowship and will typically include the committee name or purpose. Have the bank mail monthly statements to the church, where the office manager will make a copy for the finance committee before providing the statement to the committee.
e. For checking accounts, the type of checkbook that includes a copy of each check can simplify recordkeeping.
3. MAKING DEPOSITS
a. Ideally, funds should be deposited within a day or two of receiving them. Do not hold money from one week to the next before making the deposit.
b. When you receive checks, record the check date, the person’s name, check number, amount, and purpose of the payment. It is usually best to record the date received as well, if it is different from the date on the check.
c. For cash, record who you received the payment from, the date, amount, and purpose.
d. If you are selling merchandise, use 2-part receipts. Then you can record the necessary information in the receipt book, give the customer a copy, and keep a copy to accompany the deposit record.
e. If you write relatively few checks, you may not have enough deposit slips in your checkbook. You can use bank deposit slips available at the bank (be sure you write your account number correctly!). Alternatively, the bank will order extra deposit slips for your account, charging a fee for printing them.
WHEN PEOPLE GIVE YOU CHECKS
a. The checks should be made out to Unitarian Universalist Fellowship of DeKalb or UUFD.
b. Endorse each check on the back before depositing it. The minimum information required is the phrase “For Deposit Only” followed by the account number. You may add UUFD and/or the group name if you wish. You do not need to sign the back of the check.
c. If the volume of checks is high enough to make it cumbersome to endorse checks by hand, the bank will sell you an endorsement stamp for a nominal fee.
a. Retain a copy of the invoice or receipt(s) to document each check you write. Write the check number, date, amount and your initials on it.
b. Keep all deposit records, including the information listed in #3 above, the bank receipt, and any cash receipts you issued for sales.
c. Keep in your files bank statements and any copies of canceled checks and deposit tickets that are included with the statement. Checking accounts should be balanced when each monthly statement arrives.
d. You may keep track of payments and disbursements on the check register in your checkbook or in an electronic spreadsheet.
e. Also, throughout the year, keep a log of amounts you receive that would be considered tax-deductible contributions. This does not include payments for purchases—only gifts for which no item of value is received in return. For each payment, include the information listed in #3 above. At the end of the calendar year, give the list to the office manager so the information can be included in the letters people receive to document their tax-deductible gifts to the fellowship.
f. After the year is over and the Board of Trustees has audited your records, they can be filed at the church office.
a. Periodically (generally on a quarterly basis), a member of the finance committee will examine your records to verify that they are accurate and complete.
b. The results of the audit will be reported to the board.
c. Board of Trustees members are available to help your group implement the above procedures.