Fiscal Policies
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Policy on Income, Expenditures and Related Fiscal Maters
Updated: April 9, 2019
Deficit Spending
The Board should make every effort to cover operating expenses with operating income. If directed by the congregation’s approval of the annual budget to use operating reserve funds to offset deficits; such funds can be used as approved.
Budgets
The annual budget will be prepared by the Finance Committee in cooperation with staff, presented to the Board for approval and then approved by the congregation at the annual meeting.
During the fiscal year any line item that exceeds the approved budget amount must have written approval provided to the accountant/bookkeeper before posting. The President or Treasurer can approve amounts up to $500.00; larger amounts need prior approval by the Board. The accountant/bookkeeper should note these increases in the monthly Board financial reports.
Unbudgeted items (spending on an unforeseen category of expense), of any amount, may also be approved for amounts up to $500 by the President or Treasurer, who must also propose a name and description for a new spending category for which this expense should be billed against, and this category name shall be provided to the bookkeeper. Such requests should be infrequent and may require the Board to review approved expense amounts. This policy does not apply to the Building Reserve balances. Projects may be proposed for the building/grounds and approved by the Board on their merits.
Income
All UUFCO funds must be deposited in our bank accounts named Unitarian Universalist Fellowship of Central Oregon.
The Sunday offertory collection will be counted in dual custody by the Treasurer and another congregant, a deposit form prepared for the accountant/bookkeeper, and a copy kept by the Treasurer for audits. Another Board member or Finance Committee member may replace the Treasurer if needed.
Other cash amounts submitted to the accountant/bookkeeper should be counted in dual custody by the responsible parties with a form showing compliance.
Pledge amounts and payments will be posted by the accountant/bookkeeper or the Treasurer. Access to and restrictions from this information shall be per the Information Access Policy.
Expenditures and Withdrawals
Withdrawals from UUFCO bank accounts can only be done by checks or similar orders such as bill-pay for recurring monthly statements. Electronic transfers between accounts may be done by the Treasurer or accountant/bookkeeper. Any electronic transfers to other parties are blocked by our banking agreements.
All checks issued must be signed by the President, Vice President or Treasurer. All bill pay and EFT transactions must be authorized by the Treasurer or the President of the Board.
Credit cards may be issued to individuals upon approval by the Board. The cards will be issued by our bank and have $5,000.00 credit limits. These are intended for use only for church related expenses and must be paid off each month. Receipts or invoices shall be provided to the accountant/bookkeeper for expenses incurred.
Periodic Review of the Financial Records
The Finance Committee will appoint an ad hoc committee of at least three members to review financial records including payroll documents. The Treasurer will be one member of the committee. This review must be done at least yearly using UUA provided guidelines for such church reviews. A written report must be provided to all Board members.
Policy on Designated Funds
Updated: April 12, 2018
UUFCO desires to foster a culture of giving where people are generally supporting the overall mission and activities of the fellowship, and not using their gifts as a means to guide the priorities of the fellowship.
Donors who wish to designate their contributions to a specific purpose will need to get approval from the Board and the Minister for their gifts to be accepted with the requested limitations. Gifts to the Minister Discretionary Fund or to the Education Leadership Development Fund do not need this approval by the Board.
The designated funds that will continue to be utilized, and their required distribution approvals, are shown below:
Minister Discretionary Fund – funds designated for the use at the sole discretion of the minister. Approval required: Minister
Education Leadership Development Fund — Used to enable members’ participation in conferences, workshops, and a broad spectrum of activities that are not included in the operating budget. Approval required: Board President and Minister; If over $500, Board and Minister
Other existing designated funds shall be closed to future contributions immediately, with remaining funds available until expended.
The list of those other designated funds with non-zero remaining balances, and the purposes and spending authority of these funds, are shown below:
Youth RE Program Discretionary Fund – funds designated to fund special supplies, enhance programs, etc. Approval required: RE Director and Minister
Music Program Discretionary Fund – funds designated to purchase additional music, attend musical conferences, etc. Approval required: Music Director and Minister
Library Discretionary Fund – funds designated to purchase books, supplies, etc. Approval required: Library Committee Chairperson and Minister
Adult RE Discretionary Fund – funds designated for special supplies, new programs, etc. Approval required: Adult RE Committee Chairperson and Minister
Policy on Use of Building Funds
Updated: October 11, 2018
Building funds will be placed in separate line items on balance sheets and reported to the Board each month. These funds are subject to the agreements signed before construction started, and as amended by the “Termination of Agreement and Determination of Application of Funds”, signed June 20, 2018.
One of these funds, Operating Reserve, may be used to offset deficits caused by increased building operation costs. The necessary withdrawal amount will be estimated in the annual budget and adopted by the congregation. Money will only be withdrawn from this account if actual expenses for the fiscal year exceed income by an amount sufficient to require drawing on this reserve fund.
The second fund, Building Reserve, consists of contingency funds left from construction and final pledges being completed. This fund is directly under Board oversight and may be used for additional projects concerning the building or grounds. If the Operating Reserve has been consumed, the Building Reserve can be used for operating shortfalls. All expenditure requests require Board approval. They may be submitted, in writing, to the board by either ten members, a committee or team of the Fellowship, the minister, or by the board itself.
Endowment Committee Policy and Procedures
Updated: January 19, 2021
Plan of Operation
The UUFCO Endowment Fund Committee (hereafter, the “Committee”) shall consist of a minimum of five voting members, all of whom shall be voting members of UUFCO. One member shall be appointed from the Board of Trustees by the board President. The other members shall be elected by the Congregation. Except as herein limited, the term of each member shall be two (2) years.
No member shall serve more than two consecutive two-year terms. After a lapse of one (1) year, former Committee members may be reelected. The UUFCO Treasurer shall be excluded from appointment or election to the Committee in order to avoid a conflict of interest with the Treasurer’s audit responsibility.
In the event of a vacancy of an elected position on the Committee, the UUFCO Board of Trustees shall appoint a congregation member to fill the vacancy until the next annual meeting of the Congregation, at which the Congregation, following electoral procedures for other Fellowship officers, shall elect a member to complete the term of the vacancy.
The Committee shall meet quarterly, or as needed in the best interest of the Fund.
A quorum shall consist of three members and a majority of those members present and voting shall carry any motion or resolution.
Duties of the Committee and Committee Officers
The Committee is responsible for:
Promoting the concept of giving to the Fund.
Developing an investment policy.
Receiving or rejecting contributions to the Fund. Gifts other than cash will normally be liquidated as promptly as practical.
Investing gifts in accordance with the Investment Policy
Maintaining necessary records of gifts, investments and distributions.
Adopting means for acknowledging the receipt of gifts in a manner that will permit the donor to claim federal income, gift and estate tax charitable contribution deductions.
Causing distributions to be made from the Fund, consistent with Endowment policy.
Reporting to the Board of Trustees and Congregation on activities, Fund balances and the distribution of proceeds.
The Committee shall elect from its membership a chairperson, a recording secretary, and a financial secretary. The length of terms for these officers shall be determined by the Committee. The responsibilities of these persons shall be as follows:
The Chairperson, or person designated by the Chairperson, shall preside at all Committee meetings, and shall provide an annual report to the Congregation. The Chairperson shall submit a quarterly report to the Congregation Treasurer on the activities of the Committee and including the financial report prepared by the Financial Secretary.
The Recording Secretary shall maintain complete and accurate minutes of all meetings of the Committee, shall supply a copy thereof to each member of the Committee, and will make them available to members upon request. Each Committee member shall keep a complete copy of minutes to be delivered to his or her successor.
The Financial Secretary shall maintain complete and accurate records of receipts for the fund, income from the fund, income from the fund, and disbursements from the fund, including the names of donors and recipients. Should a donor wish to remain anonymous, their name and donation details will not be revealed in public records of the committee. The Financial Secretary shall assist the Congregation Treasurer and bookkeeper in maintaining complete and accurate books of account for the Fund, shall submit to the treasurer on behalf of the Committee written requests for checks payable from the Fund, and shall sign all other necessary documents on behalf of the Congregation in furtherance of the purposes of the Fund. The financial activity of the Endowment Fund shall be a part of the annual review of Fellowship finances
The Financial Secretary is responsible for monitoring and placing trades in the brokerage account for the Endowment. He or she is responsible for preparing the quarterly financial report for review by the committee and for the Chair to include in his or her report to the Board. The Financial Secretary is also responsible for giving the committee a report on the investment allocation and whether any rebalancing is needed per the Investent Policy Statement. When contributions are received by the committee, the Financial Secretary shall assist the Bookkeeper in providing appropriate tax receipts for donors..
Members of the Committee shall not be liable for any losses that may be incurred upon the investments of the assets of the Fund except to the extent that such losses shall have been caused by bad faith or gross negligence. No member shall be personally liable as long as she or he acts in good faith and with ordinary prudence. Each member shall be liable for only her or his own willful misconduct or omissions and shall not be liable for the acts or omissions of any other member. No member shall engage in any self-dealing or transactions with the Fund in which the member has direct or indirect financial interest and shall at all times refrain from any conduct in which her or his personal interests would conflict with the interest of the Fund.
All assets are to be held in the name of the Unitarian Universalist Fellowship of Central Oregon Endowment Fund.
Recommendations to buy, hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest, and in all other respects to manage and control the assets of the Fund, including stocks, bonds, debentures, mortgages, notes, or other securities, as in their judgment and discretion they deem wise and prudent, are to be made by the Committee, for approval by the Board of Trustees of the fellowship, with subsequent execution by the delegated member of the Committee. The Endowment Committee will approve and implement investment decisions for new funds and periodic rebalancing of the fund in accordance with the Investment Policy Statement approved by the Boa rd.
The Committee shall provide an annual report to the Congregation in advance of the Annual Meeting. This report shall include the accomplishment of the Committee for the past twelve months and the plans for the next twelve months. The topics to be reported shall include its activities with regard to raising, administering, and disbursing funds. Information about the investments shall be provided including: type of investment(s), gain or loss, and the value of the account(s). This report shall be made available in written form to members of the Fellowship with the same lead time required by the by-laws for providing the list of candidates prior to the date of the meeting. Recognition shall be accorded to the donors and planned givers of the past year, if they so desire.
Raising and Administering Funds
The Committee shall provide for the continuing education of congregation members about the charitable aspects of estate planning, ways to transfer assets, the use of wills and trusts, life insurance, annuities, gifts of real property, securities or other tangible property of value such as art works and antiques.
Preferred donations to the Fund are cash, securities, or other financial instruments that can quickly and easily be converted to cash or other liquid assets.
The Committee shall encourage and assist members and friends of the congregation in making contributions to the Fund.
The Committee shall solicit gifts throughout the year, dealing with donors individually.
The Committee shall not hold general fund drives that would compete with regular Church pledge campaigns and anticipated capital fund drives.
Except in extraordinary circumstances, the Committee will not accept donations earmarked for special purposes. Other UUFCO funds are available for these types of donations.
The Committee shall invest the Fund’s assets in a prudent manner.
The Committee shall consider the Congregation’s social and ethical positions when formulating investment strategy.
Disbursement of Funds
The Committee shall place highest priority on disallowing any invasion of the accumulated original monetary value of the gifts to the Fund. However, momentous issues may arise that require the congregation to consider access to part or to all of the Fund’s principal. For any meeting at which decisions shall be made on expenditures from the eligible endowment funds, fifty percent (50%), including proxy votes, of the voting congregational membership shall be required as a quorum, and a sixty six percent (66%) majority of those present, or by proxy, shall be required to adopt a substantive motion. A written ballot shall be required for all such decisions. The ballot shall include the amount of principal to be withdrawn along with the purpose of the withdrawal. Upon approval by the congregation, the Board of Trustees shall have the power to make expenditures from the principal of the Endowment Fund in accordance with the authorizing motion by the congregation.
Once a Fund asset value (principal and income) of $100,000 is reached and maintained for four (4) consecutive quarters, the Committee may, at the direction of the Board of Trustees, disburse annually any new Fund income and not withhold it for further growth. The primary means for fund growth shall then be the Committee’s fund raising activities.
The Endowment Committee will approve and implement investment decisions for new funds and periodic rebalancing of the fund in accordance with the Investment Policy Statement approved by the Board.
Amendments
These Policies and Procedures may be altered or amended by a majority vote of the Endowment Committee followed by approval of the Board of Trustees.
Dissolution of the Fellowship
In the case of dissolution of the Fellowship, all assets of the Endowment Fund, subject to all claims against it, shall be vested in the Unitarian Universalist Association or its successor to be held in trust for the benefit of a future Unitarian Universalist Fellowship in Central Oregon.
Policy on Non-Monetary Gifts
Updated: May 9, 2019
Policy
UUFCO welcomes non-monetary gifts from its congregants and friends. Gifts must support the vision and aspirations of the design and the intention of our new church, conform to UUFCO’s purpose, programs and values, and comply with the donation procedures outlined below, and detailed on the attached UUFCO Non-monetary Gift Proposal form. The Board of UUFCO reserves the right to negotiate the conditions of the gift with the donor.
Procedures for the acceptance of non-monetary gifts:
1. The donor proposes the gift to a specific related committee, program, Minister or Board in the attached written format. Gifts of art shall initially be proposed to the ART Committee, who shall refer to the art guidelines document for intentions that we have set for art in our building.
2. The committee, program, Minister or Board under which the gift’s purpose falls will review the proposal and explore possible implications the gift has to the UUFCO budget. (For example, if there are moving, installation, labor, or maintenance costs associated with the gift either for the short or long term). If the proposed gift does not fit the criteria stated in the policy above, or if the associated costs of accepting the gift are deemed to be too high, the gift will not be accepted. The entity to which the proposal was submitted will make recommendations of acceptance to the Board.
3. The donors and the Board President, Treasurer or Vice-President will sign off on the “Gifts Acceptance Form” if the Board decides to accept the gift. Gifts of art are expected to be consistent with Art Guidelines.
Tangible Gift Form (online version, preferred)
Tangible Gift Form (printable)
Donations of Art and Non‐monetary Gifts Acceptance Form
Policy on Review of Insurance
Updated: February 14, 2019
It is fiscally prudent to have an active risk management program that includes a comprehensive insurance package. This will ensure the viability and continued operations of the church.
The treasurer of the Board shall lead an annual insurance review for the Board to be sure the church has adequate insurance to recover losses, and to ensure that the appropriate types of insurance and endorsements are purchased.
Annual Board approval of the insurance coverage must be documented in Board minutes, including any action taken to decrease/increase insurance.