SOUTH GEORGIA ANNUAL CONFERENCE
ACCOUNTABLEREIMBURSEMENTPOLICY
TheUnited Methodist Church ("Church") recognizes that certain expensesofministrypaid by thepastor/staffperson arepart of theordinary and necessary costsof ministry inthisChurch/charge. Accordingly,weherebyestablish anaccountablereimbursementpolicy to defraythem directly. The reimbursementaccountshallbe anannuallineitemin the Churchbudget. It shallbe inaddition tothe pastor'sannual salaryandhousing. The reimbursement account for 20 shallbe $ . (Amountmaybedeterminedbyusing the attachedsuggestedworksheet.)
Thefollowing requirements for the policyarebindingupon the Churchandupon,itspastor/staffperson.
Accordingly, the Churchhereby establishesan accountablereimbursement policy,pursuant to IRSregulationsanduponthefollowing termsandconditions:
1.Thepastor/staffperson shallbe reimbursed fromthereimbursementaccountforhis/herordinary, necessaryandreasonablebusinessexpensesincurred in the conductof the ministryfor, andon behalfof, the Church. The following expensesarebudgeted inthis accountablereimbursementpolicy,as suggestedfor theworkneeds ofthe pastor/staff person.
2.The committeeonSPR/PPRchairperson,Churchpayrollperson,or treasurer,(as designatedby the Church)must be givenan adequateaccounting within 60days after theexpense ispaidor incurred. The adequateaccountingshall include,butnot belimited to,a statement ofexpense,account-bookdiaryorothersimilarrecordshowing the amount,date,place,businesspurpose, andbusinessrelationshipinvolved. Such documentationshall includereceiptsforallitemsof $75or more (achurch mayset a loweramount). Appropriate documents,cashreceipts,canceledchecks,creditcardsalesslips,andcontemporaneousrecords(for thosenon-receiptexpenses less than $75), must be attachedto each expense report.A log of totalmiles perdayand enumerationof their generalpurposeshall suffice to substantiate automobilemileage,butundernocircumstances willcommutingmileagebetweenthepastor's home and Churchofficebereimbursed. Copies ofthedocumentaryevidenceandexpense reportshallbe retained by both thepastor/staffperson and the Church.
The committeeonSPRchairperson (ortreasurer)shallbe responsible for approving theexpense. The committeeonSPRchairperson(or treasurer) shallexercisehis/herdiscretionregarding theadequacy ofthesubstantiation andthe appropriatenessofany reimbursement.Questions arisingintheseareaswillberesolvedby the SPRchairperson(or treasurer),subject to the review andapprovalofthe committeeon SPR/committeeon finance.
3.It is the intention of this policy that reimbursementswill be paid afterthe expense has beenincurredby the pastor/staffperson.However,should circumstances require payment ofanadvanceforanyparticularanticipatedexpense,thepastor/staffpersonmustaccountfortheexpense asdescribed aboveandreturn anyexcessreimbursement within120 daysafter theexpense ispaid orincurred. Any excessadvancemust be returnedto the Churchbefore anyadditionaladvancesareprovidedtothepastor/staff person.
4.Budgeted amountsnot spentmustnot bepaidas a salary bonusorother personalcompensation.Ifsuch paymentsare made,the entireamount of the accountablereimbursementpolicy account will be taxableincometothepastor/staff person.TheChurchwillberequired bylaw toreport thatamount aspartofthepastor's/staffperson'scompensation.Dispositionof anyunspent balancesremains at the discretionof thecommitteeon finance/the council/chargeconferencein building the budget forthe nextChurchyear.
5.It is understood by the various parties that allelements of this resolutionmust be carefullyfollowedto prevent the Church from being requiredbyregulation toincludeallreimbursementsasincome on the pastor’s/staff person’s FormW-2.The primary responsibilityin this regard isonthe pastor/staffperson toreport and adequatelyaccountfor his or herexpenses tothecommitteeonSPRchairperson,church payrollperson,and/or treasurer.
Adopted on, 20, by the Church Council [ChargeConference]of the UnitedMethodistChurch.
Chair,ChurchCouncilSPR/PPRChairperson/ChurchTreasurer
Pastor/StaffPersonSecretary
Thisisasampleofanaccountablereimbursement policy.Thespecifics ofeachpolicy shouldbereviewedbyeachchurchand minister consideringtheir specific concerns.If legal ortaxadviceisrequired,theservicesofa competentprofessional advisorshouldbesought.
WORKSHEETFORSETTINGABUDGETFORANACCOUNTABLEREIMBURSEMENTPOLICY
The following are suggesteditems forinclusionin thisaccountable reimbursementpolicy. It is onlythetotal listed in ItemK which is to be put in the policy itself.This worksheet is for budgetingpurposes only and itis permissible for the reimbursed individual to shift items from one area toanother.
A.Automobile (standard federalmileage rate),parking and tolls$
B.Officesuppliesandpostage$
C.Officeequipment,computer andsoftware$
D.Books,subscriptionsandperiodicalssuchasprofessionaljournals $
E.Professionaldues$
F.Religious materials, vestments and business gifts$
G.Continuingeducationandseminars
(as approved by thecommittee on SPR and/or thecommittee on finance)$
H.Entertainment required for Churchbusiness$
I.Travelfares, lodging and meals while on business forthe Church$
J.Other$
K.Total*$
*The total listed in ItemK must be the same as thetotal reimbursement amount setforth in thefirst paragraph of thepolicy. Churchcouncilactionisrequiredfor an increase toItem"K" (Total).Toallowforthepastor/staff person'sspendingdiscretion, onlyItem"K"isnecessary tobereportedasalineiteminthechargeconferenceapprovedbudgetandinthepolicy document.Circumstancesdictate thattheaboveexpenses willvaryfromchurchtochurchandfromtimeto time.
TheGeneralCouncilonFinanceand Administration isnotengagedinproviding legaloraccounting services.Theserviceofa competent professional shouldbesoughtforlegalandtaxadvice.