By Cynthia Gordon-Floyd, CPA, Columnist
The Doctrine and Discipline of the African Methodist Episcopal Church 2016 specifies that the pastor shall be the official head of all boards. The financial state of the church can significantly hamper the ability of the church to do ministry. Therefore, the pastor must regularly oversee the financial stewardship of the church.
In the AME Church, pastors are assigned to a church for one year; therefore, it is unrealistic that overall financial management can be the sole responsibility of the pastor. The Discipline notes that the Board of Stewards are charged with making an exact account of all monies collected for the support of the ministry.
These guidelines are important to consider for wise financial management. First, attend to bank accounts. The pastor should be a signer on the church bank accounts as a matter of establishing new authority after a pastoral transition. Each church bank account should have at least three signers; the pastor, a steward (maybe the pro-tem or financial secretary), and a trustee. Manual checks should be authorized for issuance by two persons, one of which may be the pastor. However, the pastor’s signature is not necessary if signed by two other persons in authority.
Second, consider banking authority. Neither the pastor nor any other member of the church should have the authority or ability to withdraw church funds or incur church debt without the approval of the Board of Stewards or the Board of Trustees. Stewards and trustees are accountable to the Quarterly Conference; and therefore, they should not act unilaterally but must ensure that their actions are approved by the pastor and their respective boards when signing checks and executing other financial obligations.
Third, give attention to the Commission on Stewardship and Finance. The Commission is under the control of the pastor and the Board of Stewards. They are tasked with receiving and disbursing funds, establishing and enforcing financial policies and procedures, and establishing a budget and financial reporting for the ministry. The pastor should receive frequent detailed reports of all receipts and disbursements as well as the overall status of cash reserves and pending obligations. To avoid the appearance of impropriety, the pastor should not count funds, make deposits, or write checks on his or her own.
Cynthia Gordon-Floyd is a certified public accountant and founder of Willing Steward Ministries (willingsteward.com), which is a financial consulting and accounting firm for churches and other faith-based non-profits. She specializes in Bible-focused financial practices, pastoral compensation issues, IRS compliance and other financial needs specific to churches. Cynthia is a graduate of Lake Forest College and received her Master of Business Administration in Accounting from DePaul University. She is a steward and the financial secretary at the First AME Church of Manassas in Manassas, Virginia.
