DALLAS (ABP) -- When it comes to church finances, donations in cash form present one of the greatest challenges for churches, experts say.

Roger Hall, a part-time business administrator for First Baptist Church in Waxahachie, Texas, said the biggest risk involves cash before it hits the books.

When handling cash receipts, churches should remember that there is safety in numbers, Hall said. Two or more people should monitor offerings when they are taken from the church's sanctuary to the church office, two or more should count the cash, and two or more should take locked moneybags to the bank for deposit, he said.

“Have the counting committee members bonded as money handlers,” said Hall, the former chief financial officer and treasurer for the Baptist General Convention of Texas.

Hall also recommended a division of labor in legal and financial matters. Legal officers of the church like trustees should sign legal documents on behalf of the congregation. The treasurer should provide financial reports at church business meetings, work with the financial secretary on financial matters, and oversee independent audits.

The financial secretary's handling of money should be limited, Hall said. Ideally, the job has only a few specific responsibilities: maintain accounting records; prepare checks for signatures from authorized individuals; prepare financial statements; maintain individual contribution records; handle payroll and reports; and oversee petty cash.

When it comes to cash disbursements, Hall offered several other recommendations:

-- Use only church-approved bank accounts.

-- Have all checks signed by two approved parties, and designate back-up signers for when the principal signers are unavailable.

-- Use only pre-numbered checks.

-- Do not sign blank checks or make checks payable to “cash.”

-- Have approved invoices or documents available to review at the time checks are signed.

-- Reconcile bank accounts monthly. That task should be performed by a person other than the individual who prepares the checks.

-- Make sure checks are made out to approved accounts from which authorized funds are available.

Ultimately, Hall said, churches should keep in mind a clear sense of purpose: “to see that resources are handled properly, ensure accountability, and keep the church family informed.”

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-- This story is the second of a three-part series on church finances.

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