BP 11122023 129pm - Flipbook - Page 27
SECTION 7: DISBURSEMENTS
Budget: The annual budget should include general expenses expected to be incurred during the
fiscal year. It is expected that the entity works within the approved budget. When costs are
expected outside of the budget or anticipated to be higher than the budget, the Leadership should
approve the expenditure in advance. The Leadership, finance council, treasurer, business
manager, and department heads are responsible for monitoring the budget to actual expenses.
Unpaid Invoices: Unpaid invoices should be processed for payment in a timely manner.
Accounting for Business Expenses: Payments should be booked to proper general ledger
account. Expenses should not be booked as debits to revenue.
Methods of Payments: Disbursements should be made by check or Bill, when possible, and via
credit cards, ACH, and wires only when necessary. Under no circumstances should
disbursements be made from undeposited funds. The Leadership should approve the payment
prior to the transaction taking place.
Expense Documentation and Approval: The IRS requires that supporting documentation, such
as invoice, receipt, petty cash slips for small cash payments, be retained to support business
expenses. Original source documents (invoices) containing written evidence of receipt of product
or service along with a payment request form should be submitted for approval prior to payment.
The payment request form should be used to document description and approval of expenditures.
Clergy, employees, and volunteers incurring business-related expense should sign and date
payment request, invoice, etc., indicating that the goods or services were received in satisfactory
condition. Each individual’s supervisor should approve payment of the expense and initial/date
document evidencing approval. Individuals in leadership positions in departments, ministries, or
organizations should not approve their own expenses. Although pastors may approve their own
expenses, it is recommended that the finance council is aware of reimbursements and material
purchases. This documentation and approval process is required for all methods of payments.
Expenditure should be disallowed if proper documentation is not provided.
Purchase Order: Purchase Order (PO) system should be instituted for high dollar purchases to
aid in cash management and budgeting. Leadership should establish a dollar limit above which a
PO is required to place an order for goods and services. Purchaser should complete PO and
pastor, administrator, principal, or his delegate should approve and date the PO. PO should be
monitored/tracked.
To establish an Amazon Business Account contact the Archdiocese’s Parish Support in the
Finance Department.
Expense Report: Expense reports (may be referred to as a check request) should be used to
claim reimbursement of out-of-pocket business expenses. Leadership, employees and volunteers
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