Financial Stewardship and Internal Controls Policy

THIS GRACE BIBLE CHURCHES | PRAECEPTORIUM Edition 2026 10 03 R2 | 24 10 Financial Stewardship and Internal Controls Policy Edition 2026 10 03 R2 | Operative only upon authorized adoption Scope and conditional operation This policy governs any organizational money or assets actually received or administered. It does not establish a bank account, donation program, employment arrangement, property ownership, or paid ministry. Those activities remain conditional on a separate authorized decision. Personal voluntary expenses must be distinguished from gifts to or liabilities of TGBC. Stewardship is faithful service: 1 Corinthians 4:2 KJB; 2 Corinthians 8:20-21 KJB. Funds actually given to TGBC belong to the lawful organizational owner and must serve its religious, charitable, and educational purposes. No title or family relationship establishes private ownership. Authority before commitments A written authorization shall identify the activity, responsible persons, signing authority, spending limits, expected recurring obligations, and review arrangements. Opening an account, borrowing, paid employment, and substantial property commitments require extraordinary approval under the Bylaws. Do not infer authority from possession of a form. Any future account shall use the actual organizational name and any legitimately issued identifier required by the institution. No EIN, tax determination, or account is invented or presumed by these documents. Maintain organizational funds separately from personal funds; an exceptional temporary custodial arrangement requires a separate ledger, written authorization, and prompt resolution. Receipts gifts and restrictions Record date, amount or property description, source where known, purpose, and any accepted donor restriction. Deposit funds promptly into an authorized organizational account when one exists. Use two persons to count substantial cash where feasible, or a documented independent check when staffing is limited. Keep contribution records private. Accept restrictions only when consistent with the mission and practical capacity. Distinguish a donor preference from an accepted binding restriction. Return or resolve an incompatible restricted gift lawfully rather than silently divert it. No gift purchases leadership, ordination, favorable discipline, or teaching control. Acknowledgments must state actual facts and avoid unsupported tax claims. Describe noncash property without assigning the donor's deduction value. Contributions for a specified private individual require separate review before any charitable-deduction representation. Expenses compensation and reimbursement Approve legitimate ministry expenses before commitment where practical. Keep invoices, receipts, dates, purpose, amount, payee, and payment confirmation. Reimburse only the genuine ministry portion of mixed expenses. Do not use blank signed checks, undisclosed accounts, or unsupported cash withdrawals. A person shall not approve his own compensation, reimbursement, or material related-party benefit alone. Use the Conflict Policy's independent approval, including a limited disinterested reviewer during the sole-member stage. Compensation must be reasonable for actual services and separately authorized. Worker status and any applicable payroll or reporting obligations must be reviewed before payment; describing work as ministry does not decide its tax treatment.

THIS GRACE BIBLE CHURCHES | PRAECEPTORIUM Edition 2026 10 03 R2 | 25 Controls reconciliation and reports When funds are active, keep a transaction ledger with receipts, payments, balances, restrictions, and outstanding commitments. Reconcile bank or payment accounts monthly where statements are available. A person other than the primary processor should review monthly transactions and balances; in a small assembly, use a recorded independent periodic review at least quarterly. Give oversight persons accurate reports of receipts, spending, balances, restrictions, and obligations. Document errors and corrections. Adopt a budget only when useful; a budget does not replace signing authority or the approval of a particular extraordinary commitment. Assets security and continuity Inventory material property with lawful owner, acquisition source, custodian, location, condition, and permitted use. Review transfers or disposals before action and update ownership records. Officeholders gain no personal title by use or custody. Protect accounts and records through individual access, strong passwords, multifactor authentication where available, backups, and timely removal of access. Maintain lawful recovery instructions for incapacity or death without transferring ecclesiastical titles. Never publish passwords or recovery codes in the document package. Benevolence and suspected misuse Authorize assistance for genuine need, available resources, and organizational purpose. Document amount, payee, restrictions, and conflicts; protect recipients' private details. Assistance is not payment for joining or staying in fellowship. Report suspected theft, fraud, or significant unexplained loss to an appropriate disinterested responsible person. Preserve records, protect remaining assets, and make lawful reports to institutions, insurers, or authorities where applicable. A title does not shield a transaction from review. No retaliation for a good-faith concern is permitted. Retention and tax duties Follow the Records Policy and any longer applicable legal, contractual, tax, or dispute requirement. Maintain legal holds. Federal church exemption and Form 990 exceptions do not establish that no other return, wage report, unrelated-business obligation, or state exemption process could apply. Review actual activities before making filing or tax statements. Adoption Approving authority ________________________ Signature __________________ Date __________ Effective date __________ Independent review arrangement ________________________ Record reference __________