Current members of the Finance Committee are:
- Patricia Crocker
- Alden Meyer
- Pat Nutter
- Reuben Snipper
- Catherine Vanderwaart
- James Wilkinson
You can send email to our committee at finance (at) adelphifriends.org
Finance Committee Policies and Procedures
As revised and approved by the Finance Committee August 13, 2015
- Committee Charge
- Budget. To determine and monitor the level of funds necessary:
- to support the healthy functioning of the Meeting, including the growth and development of Meeting, its members and attenders;
- to maintain Meeting facilities;
- to provide a collective witness; and
- to fulfil Meeting’s obligation to Baltimore Yearly Meeting.
This requires preparing Adelphi’s draft annual budget, presenting it to business meeting, monitoring the approved budget’s execution, taking steps if needed during the course of the year to propose budget modifications and ensure the level of income contemplated by the budget, and reporting on budget execution and the Meeting’s financial position at year-end. It also requires reviewing and monitoring the annual budget of Takoma Park Preparative Meeting.
- Contributions. To encourage additional donations from the Meeting, as needed, when actual donations are below the budgeted level, including, as appropriate:
- conducting fund raising appeals;
- monitoring auto-donations by contributor and encouraging periodic increases in the amount donated;
- making periodic appeals for increased donations in Meeting for Worship;
- compiling and distributing a monthly donations report that informs the Meeting of how far ahead or behind donations received are compared with the levels needed to meet budget. Presenting the report to the Meeting for Worship for the Conduct of Business.
- Support to Treasurers. The Committee provides backup and support to the Treasurer and Assistant Treasurers, as needed, and responds promptly to their requests for guidance on Meeting finances. The Committee periodically reviews the charges for the Treasurer and Assistant Treasurers, the Committee’s own charge, and recommends changes as necessary.
- Support to committees. Provide guidance and support to Adelphi committees on financial aspects of their charges.
- Response to concerns. Respond to emergency financial needs and identify and respond to other financial concerns related to the operation of the Meeting.
- Records. Arrange for periodic review of financial records.
- Investments. Manage Adelphi assets.
- Budget. To determine and monitor the level of funds necessary:
- Committee Operations
- Clerking. The Committee has taken a flexible approach to clerking. Decisions regarding clerking arrangements and designation of individual clerks are made at the beginning of each calendar year. Currently, the responsibilities are divided into three posts: Convening Clerk (plans the agenda and clerks Finance Committee meetings), Recording Clerk (takes Minutes of Committee meetings), and Reporting Clerk (presents monthly updates and other reports to business meeting). The Committee may divide these tasks among its members from time to time.
- Calendar. The fiscal year for Adelphi Friends Meeting is December 1 – November 30.
- Dreamhost group. A Dreamhost listserv facilitates communication among Committee members. One Committee member (or designee) serves as moderator of the group. That person must invite membership by new members. Earlier emails and documents are available on a Yahoo group.
- Liaison with Baltimore Yearly Meeting and BYM apportionment.
In its apportionment process, Baltimore Yearly Meeting (BYM) treats Adelphi and Takoma Park Meetings as a single entity: statistical reports to BYM are based on the combined statistics of both meetings, and a single amount is apportioned to Adelphi with no amount apportioned to Takoma Park. It is up to Adelphi and Takoma Park to discern how to split BYM’s apportionment between the two Meetings.
For the last few years, we have figured out the fraction of donations reported to BYM that was received by Takoma Park; we have then had Takoma Park pay that fraction of the apportionment (rounded off). (This fraction can also be used as the fraction of Adelphi’s insurance payment that is paid by Takoma Park – since Takoma Park is not separately incorporated, insurance of Takoma Park takes the form of a rider on Adelphi’s policy.) An alternative would be to determine Adelphi’s and Takoma Park’s share under the full BYM apportionment formula as if each were a separate Meeting.
Here are the events in the apportionment process:
- Once Takoma Park’s budget year books are closed, the Takoma Park treasurer reports to the Adelphi treasurer on all the statistics that BYM wants.
- Once both Takoma Park’s and Adelphi’s statistics are available, the Adelphi treasurer reports the combined statistics of the two Meetings to BYM.
- BYM’s stewardship and finance committee meets early in the calendar year to develop proposed apportionments for all the monthly meetings in BYM. Adelphi’s finance committee ensures that Adelphi is represented at this meeting.
- BYM’s annual session in late July or early August considers stewardship and finance committee’s recommendations and then sets the apportionments for the following calendar year.
- In August or September, Adelphi’s finance committee and (in the absence of a Takoma Park finance committee) Takoma Park’s treasurer agree on a proposed amount of the apportionment to be paid by Takoma Park. (A proposed amount of the insurance payment can also be agreed to at this time.)
- The proposed Takoma Park apportionment payment is incorporated into the proposed budgets of both Takoma Park and Adelphi (as is the proposed insurance payment).
- Once both Meetings have approved budgets with identical Takoma Park apportionment (and Takoma Park insurance) payments, we get to start all over.
- Liaison with other AFM committees. Members of the Finance Committee interact with other Adelphi Committees to provide advice and guidance on financial matters related to Committee work.
- Communications. Monthly financial reports to Business Meeting. Quarterly, mid-year, and end-of year budget updates. Pledge and tax letters.
- Procedures and Policies
- The Finance Committee solicits budget requests from other Meeting Committees and services.
- The Finance Committee develops the draft budget and takes it through the approval process; if necessary, it considers changes to the draft depending on what business meeting requests.
- Monitoring and reporting
- The Finance Committee monitors the budget by keeping track of income and expenses throughout the year. Expenditures are generally carried out by committees, which should stay close to their budget. Small deviations are fine, but if there are major additional expenses the Finance Committee should present proposed amendments to the budget to business meeting. If income is not coming in at target levels, the Finance Committee takes appropriate action.
- Significant deviations from the approved budget should be presented to business meeting for approval.
- Audits: Thus far, the Meeting’s books have not been audited, but should be audited periodically.
- Pledges: we have not historically relied on pledges, but are doing so as part of the capital campaign. The auto-donor program is a soft pledge, in the sense that most keep the authorization in effect throughout the year.
- Designated giving: Currently, the Meeting accepts restricted contributions to its building fund. There is also the possibility that a bequest might be restricted. If a bequest is unrestricted, the Meeting’s policy is to take a specific decision on use of the bequest, rather than just including it in current income.
- In-kind contributions: Contributions may be made in stock, which is immediately sold. Contributions of tangible property are not encouraged, but might occur if the Meeting has a specific need.
- Interest income: This is generated by the Meeting’s investments. Currently rates are low and so this income is not significant, but it may pick up if interest rates rise in the future.
- Strawberry Festival: Budgeted for as part of the annual budget.
- Other fundraising: None, except for the capital campaign.
- Camping (including BYM’s diversity camping fund)
- Other (e.g., FCS’s Blackburn Scholarship)
- Insurance (resident, property, liability, other)
- Utilities (Including telephone and Internet for resident and Meeting, gas, electric, water, compost, trash pickup, fire and security systems, etc.)
- BYM Apportionment
- Aid Fund
- Donations to:
- Quaker Organizations
- Social action organizations
- Committee expenses
- Reserves: Expenditures made out of reserves or funds for designated purposes do not come out of the annual budget but are shown in the budget (see below for description of these reserves).
The Meeting’s financial resources (see below for how they are invested) are notionally divided into several funds. The main restricted fund is the Building Fund. The Building Fund was set up by the Meeting to be used for new construction and renovation of the facilities.
All the other funds are designated, but unrestricted. This means that the Meeting has set aside money for the designated purpose but the Meeting can change the use of the money at any time. Each year’s budget typically includes contributions to these funds. The designated funds are as follows:
- Reserve for replacement (or improvements).
- Camping and retreat fund.
- Aid Fund.
- Memorial Garden. To maintain the memorial garden.
- Games Day.
- Bequests. To be held pending a decision by the Meeting as to how to use the funds.
Undesignated reserves are reserves that are not designated for a specific purpose. The budget typically includes an estimated amount to be transferred to undesignated reserves. The actual amount that is transferred to reserves will be the excess of actual income over actual expenditures (and vice versa, if actual expenses exceed income, then an amount is drawn from undesignated reserves to cover the shortfall).
- Separation of Duties
The treasurer makes payments while the assistant treasurer receives donations. Best practice requires that these two tasks be carried out independently by different people.
- Charge for Treasurer
- Write checks and record payments. Invoices and bills are received through the mail, in the treasurer’s mailbox in the Meeting lobby, or hand delivered. These include utilities and committee expenses.
Reimbursements to an individual require a receipt for the expense occurred, the individual’s name and contact information, and the budget line (typically the name of the committee) to which the expense should be allocated. The treasurer does not require formal approval from committee clerks.
Some expenses are not specifically billed and must be remembered. These include BYM apportionments, the Blackburn Fund for Friends Community School, and contributions to Quaker and community organizations.
Checks are mailed out or hand delivered to recipients. It is the submitter’s responsibility, not the treasurer’s, to find recipient addresses or other pertinent contact information.
All payments and donations are entered in the Meeting QuickBooks accounting system. These files are stored on the servers of the Meeting’s Internet service provider, including backups. Files on individual’s computers are NOT the final version.
- Report on Meeting Financial Status. Full financial reports are generated for business meeting mid-year and at the end of the fiscal year. Responses to inquiries from committees and individuals are produced upon request.
The treasurer monitors the overall financial health of the Meeting and reports concerns to finance committee and business meeting. Individual committees are responsible for tracking their own expenses and staying within budget, though the treasurer will bring major discrepancies to committee clerks’ attention.
Reconcile bank statements. Review expenditures.
The assistant treasurer generates annual tax letters for donors, listing all contributions both monetary and in-kind, at the end of each calendar year.
The treasurer is responsible for reporting to the IRS. W-2 forms should be filed for any employees that the Meeting may have (currently none). In the case of compensation paid to individuals who are not employees, the relevant form is the 1099 MISC. There is an argument that no 1099 MISC needs to be filed because it is required only of organizations engaged in a trade or business under Code section 6041A. However, the treasury regulations [26 CFR sec. 1.6041-1(b)(1)] appear to take a boarder view, so the more conservative approach would be to file the 1099 MISC for individuals who receive compensation from Meeting. These currently include childcare and cleaning.
There is no other reporting to the IRS required.
The Treasurer should also submit the personal property tax returns required by the State of Maryland.
- Administer Camping Scholarships and Tuition Assistance for Conferences and Seminars
- The treasurer is an ex-officio member of the Finance Committee and participates in committee meetings and annual budget formulation.
- Charge for Assistant Treasurer
Strive to ensure that donations are maintained at a level that will meet the budget. Prepare and deliver each month a report that summarizes donations received in the month and year-to-date, and indicates how far ahead or behind total donations are from the level required to meet the budget. Solicit additional giving, as required. Accept donations (cash, check, and in-kind) through the mail, in the donations box in the Meeting lobby, or hand delivered. Record donations in the Meeting QuickBooks accounting system. Deposit checks and cash in Meeting bank accounts. The assistant treasurer works with the treasurer on financial reports, tax letters, pledge letters, and other tasks as required, though never participates in making payments. Manage auto-donation arrangements.
The assistant treasurer is an ex-officio member of the Finance Committee and participates in committee meetings and annual budget formulation.
- Charge for Takoma Park Preparative Meeting Treasurer
Takoma Park Preparative Meeting is under the care of Adelphi Monthly Meeting, thus Adelphi is financially responsible for Takoma Park. The Takoma Park treasurer operates largely independently of Adelphi, but is considered an assistant treasurer of Adelphi.
The Takoma Park treasurer reports to finance committee on a regular basis and sends the Takoma Park share of Meeting’s BYM apportionment and insurance payments to Adelphi.
The Takoma Park treasurer is an ex-officio member of the Finance Committee and participates in committee meetings and annual budget formulation as appropriate.
- Annual Budget Formulation
July: Finance committee sends letters to committee clerks requesting budget requests for the coming fiscal year. These letters contain budgeted and actual expenses for the previous two fiscal years. A deadline during or about September is specified for responses.
August – September: Finance committee prepares draft annual budget. Committee clerks are consulted as needed to ascertain their views on proposed expenditures.
October: First Reading of annual budget to business meeting.
November: Second Reading of annual budget to business meeting.
- Banking information
As of December 2016, the Meeting’s funds were invested in accounts with SunTrust and Sandy Spring banks. An additional account is invested in Friends Fiduciary Corporation’s Green Fund.