Pennsylvania Baptist State Convention

Financial Governance Procedures

 
These procedures implement the Financial Governance Policy of the Pennsylvania Baptist State Convention and establish a consistent process for receiving, recording, depositing, disbursing, reporting, and reviewing all Convention funds. They apply to all ministries, committees, auxiliaries, departments, regions, officers, and individuals operating under the authority or name of the Convention.

1. Centralized Financial Authority

Use the following steps to make sure all Convention funds are handled through the approved financial process.

Procedure

1. Use only official Convention accounts, approved financial systems, or approved financial representatives for Convention funds.
2. Do not open or use a separate bank account, personal payment account, or outside payment platform unless a waiver has been approved.
3. If an outside account or payment platform already exists, report it to the Treasurer and Chair of Finance.
4. Work with the Treasurer and Chair of Finance to close, transfer, or bring the account into compliance.

2. Roles and Financial Accountability

Use this section to identify who is responsible for each part of the financial process.

Board of Directors- Check Constitution	Reviews financial records and reports; enforces compliance; approves required financial actions, exceptions, or corrective measures when needed.
Chair of Finance	Provides oversight of financial processes; coordinates budget activity; reviews reconciliations; supports policy implementation, accountability, and financial review procedures.
Treasurer	Maintains custody of Convention funds; oversees receipt, deposit, disbursement, recording, and reporting of funds; confirms deposits and maintains official financial records.
Financial Secretary	Assists with financial recordkeeping; maintains supporting documentation for receipts, deposits, vouchers, and reports; helps ensure financial records are complete, organized, and available for review.
Registrar	Maintain church registration and payment documentation
Regional Financial Representative	Coordinates regional collections and reporting; verifies amounts received; submits funds and documentation through the Convention’s official financial structure. Regions: Central, East, West and Southwest
Responsible Ministry Representative	Communicates financial activity in advance; completes required vouchers, requests, and supporting documentation; ensures ministry, committee, auxiliary, or department activity follows these procedures.

3. Event and Program Financial Authorization

Follow these steps before holding any event, service, program, fundraiser, registration activity, or ministry activity that involves money.

1. Identify the responsible ministry representative for the event or activity.
2. Prepare the event information, including purpose, date, location, expected income, collection method, responsible persons, and planned expenses.
3. Obtain any required approval from the Regional Vice President and President before collecting funds or making financial commitments.
4. Notify the Regional Financial Representative, Treasurer, and Chair of Finance before the event or activity.
5. Keep the approval or acknowledgment with the event records.

4. Collection and Handling of Funds

Follow these steps whenever money is collected for a Convention-related activity.

1. Collect funds using an approved method.
2. Have at least two unrelated authorized individuals count cash immediately after collection.
3. Complete an income voucher in detail- Record the date, event or purpose, amount collected, payment method, names of counters, and required signatures or acknowledgments.- Financial Income Voucher e-Form  PBSC Financial Income Voucher Form-01/26 PBSC
4. Issue or retain receipts, confirmations, or transaction records for all funds received.
5. Email Income Voucher to Regional Financial Representative and State Treasurer at PBSCtreasuer5@gmail.com
6. Submit the funds to the Regional Financial Representative  within five (5) days of collection.
7. Regional Financial Representative- Deposit funds into the official Convention account no later than two days (2)  after collection unless another timeframe has been approved by the treasurer.

    5.   Income Voucher and Deposit Process

PBSC Financial Income Voucher e-Form  PBSC Financial Income Voucher Form-01/26 PBSC

1. Complete an income voucher for each collection.
2. Attach supporting documents, including receipts, electronic confirmations, registration lists, or other records.
3. Submit the completed packet to the Regional Financial Representative and Treasurer.
4. The Regional Financial Representative verifies the amount received and forwards documentation to the Treasurer or designated financial officer.
5. The Regional Financial Representative confirms receipt and deposits the funds into the official Convention account.
6. File the voucher, deposit confirmation, and supporting records.
7. Provide confirmation of receipt to the ministry leader and Regional Financial Representative.

6. Digital and Electronic Funds

Follow these steps when receiving or sending funds electronically.

1. Use only an electronic platform approved by the Convention.
2. Do not use a personal account or unauthorized platform unless a waiver has been approved.
3. Save the receipt, confirmation, transaction report, or payment record.
4. Attach the electronic record to the income voucher, payment request, or reimbursement request.
5. Complete and submit The Financial Request Form to the Treasurer before processing any electronic payment.
6. Reconcile electronic collections to event reports, deposit records, and financial statements.

7. Disbursements, Check Requests, and Reimbursements

Follow these steps before any payment, check request, or reimbursement is processed.
PBSC Financial Request e-Form  PBSC Financial Request Form-01/26

1. Complete the required check request, payment request, or reimbursement form.
2. Attach invoices, receipts, contracts, approvals, or other supporting documents.
3. Submit the request at least fourteen (14) days before the funds are needed whenever possible.
4. Route the request for approval by the appropriate ministry leader, Regional Vice President when applicable, President when required, and financial officers according to the approval process.
5. Do not spend personal funds for Convention expenses unless prior approval has been received.
6. If the request is for reimbursement to the Treasurer, obtain approval from the Chair of Finance and President.
7. Record the payment and keep the request, approval, receipt, and payment confirmation together.

8. Signature Requirements and Payment Controls

1. Authorized signers are designated by the Board of Directors
2. Review the payment amount before processing.
3. Ensure the appropriate form is completed with the proper approvals
4. Use the Treasurer as one required signer unless there is a conflict of interest.
5. If the payment is payable to the Treasurer, ensure the appropriate form is completed and an authorized signer, other than the treasurer is signing.
6. Do not use pre-signed blank checks.
7. If an alternate signer is needed, obtain Board approval and document the approval in the minutes before the signer is used.
8. Electronic Payments are permissible for administrative expenses.

9. Contracts and Commitments

Follow these steps before signing a contract or making a financial commitment for the Convention. (Board determination on who is authorized to sign contracts)

1. Gather the proposed contract, vendor terms, cost, funding source, event purpose, and related documents.
2. Submit the materials for review before any agreement is signed.
3. Obtain approval from authorized Convention leadership before making the commitment.
4. Do not sign or verbally agree to a contract until approval has been received.
5. Keep the signed contract with the related payment request, budget record, and event documentation.

10. Budget Procedures

1. The convention’s annual budget will be approved at the annual session.
2. Ministries and committees must submit expected income, expenses, programs, and funding needs by executive board meeting (July)  to the President for approval.
3. The approved ministry and committee budgets will be submitted to the Finance committee to complete the Convention’s budget by August 30th.
4. The finance committee will submit the proposed convention budget for review and approval through the required governance process.
5. Spend only approved budgeted funds after the request is properly submitted, approved, and documented.

11. Bank Reconciliation and Financial Reporting

1. Collect bank statements for all official Convention accounts each month.
2. Compare bank statements to accounting records, deposits, disbursements, and supporting documents.
3. Identify and document any differences.
4. Correct discrepancies as soon as possible.
5. Prepare monthly financial statements.
6. Send financial statements to the appropriate Convention leadership according to the Board’s direction.
7. Have the Chair of Finance review and acknowledge the reconciliation.

12. Financial Waiver Process

Follow these steps when a ministry needs permission to use a temporary or different collection process.

1. Prepare the waiver request before the event or activity.
2. Include the event name, date, reason for the waiver, proposed collection method, timeframe, persons responsible, safeguards, and reporting plan.
3. Submit the request to the Treasurer and Chair of Finance.
4. Obtain required approval before using the alternate process.
5. Use the waiver only for the approved event, purpose, method, and timeframe.
6. Document all funds collected under the waiver.
7. Reconcile the funds and submit them through the Regional Financial Representative.
8. Deposit the funds into the official Convention account within the approved timeframe.

13. Recordkeeping and Document Retention

1. Store financial records in the Convention’s approved electronic or physical recordkeeping system.
2. Keep income vouchers, cash logs, receipts, deposit records, bank statements, reconciliations, payment requests, approvals, invoices, contracts, reports, waiver approvals, and audit materials.
3. Organize records by date, event, ministry, or account so they can be reviewed easily.
4. Do not destroy records related to litigation, investigation, audit, or official review.
5. Provide records to authorized reviewers when requested.

14. Audit and Financial Review

1. Maintain complete records for all income, expenses, deposits, reconciliations, waivers, and reports.
2. Prepare records for annual audit or financial review.
3. Provide requested documentation to the Treasurer, Chair of Finance, President, Board of Directors, auditors, or other approved reviewers.
4. Respond to document requests promptly.
5. Correct any findings or recommendations according to the approved corrective action plan.

15. Non-Compliance and Corrective Action

Follow these steps when a financial procedure is not followed.

1. Identify the issue, such as an unauthorized account, undocumented collection, late deposit, unsupported payment, missing report, or misuse of funds.
2. Notify the Treasurer and Chair of Finance.
3. Gather the related records, receipts, approvals, bank information, or correspondence.
4. Review the issue with the President and Board of Directors when required.
5. Decide what corrective action is needed.
6. Document the corrective action and timeline.
7. Follow up until the issue is resolved.

16. Implementation

After these procedures are approved, distribute them to all ministries, committees, officers, auxiliaries, departments, and regions. Require each group to begin using the procedures within thirty (30) days unless the Board of Directors gives different instructions.