Finance team agendas that produce better results

Many finance team meetings start with good intentions and end in a fog. Everyone receives the finance package at the meeting and someone leads them page by page through the package. A budget line item may eat up 15 minutes of arguably wasted time. And by the end of the meeting, nothing substantial has been decided.

A good agenda can make for a more effective meeting; along with some other ideas that will purport to facilitate a more productive use of everyone’s time.

 

Materials in advance are the “real” meeting

The meeting fails before it even gets started when members are opening and reviewing their financial packet as they arrive at the meeting. Best practice is to distribute not only the financial package, but the agenda, variance notes and any decision memos at least five days prior to the meeting.  This may mean that you need to schedule that meeting for the last week of each month.

Practically speaking, if you cannot get the package and addendums out at least 24 hours prior to the scheduled meeting, then postpone the meeting.

Ask your financial services support to include a one-page dashboard that depicts by charts the revenue and expense trends and variance to budget. Include two or three discussion points for the meeting and any action items that need to be addressed.

Are your finances in line with your mission?

A finance team that never mentions programs is only doing half its job. Stewardship is not minimizing every expense but rather aligning your resources with your purpose. When there is a surplus, ask what additional services can be funded.  When a program is over budget, ask whether the overage brought additional value to the mission or is mission drift.

Framing your discussion in this way changes the quality of the conversation. “We are $18,000 over in program supplies” is a bookkeeping note. However, the information that “this overage allowed us to serve 100 more children than we expected” is a different perspective. The governance question is, do we want to plan for this next year or limit the program?

Untethering finance from impact is how churches become careful and irrelevant at the same time.

Follow-thru is how decisions become reality

A meeting without an action log is performance, not a process. Every decision should leave the room assigned to someone and a date to accomplish this next step. The next finance team meeting starts with a report on these action items so they can be closed or escalated to the next step. Report upward with discipline: what the team reviewed, what it recommends, and what the entire church or board must vote on.

So, how do you structure the meeting – an agenda

A 60- to 90- minute finance team meeting works well when time is allocated on purpose. Remember, these are volunteers for the most part and their time is valuable. Adjust the minutes to your cadence but keep the sequence.

Opening and prior actions (5 minutes)

Open in prayer and then confirm the agenda. Review items from the last meeting: owner, deadline, status. If last month’s commitments vanished, this month’s conversation will too.

Financial reports, not a recitation (10 – 15 minutes)

Assume members have read the packet. The treasurer or chair highlights only what changed: actual to budget, cash and designated balances, near-term liquidity and anything else that would surprise the full board.

Variances that matter (15-20 minutes)

Focus on material items – not every line item. Look for items with a 10% or more budget variance. Consider what happened, whether it is a one-time or on-going variance, and who owns the response. Perhaps highlight these items beforehand in the financial notes.

Decisions (15 minutes)

Name the items that require a recommendation to the board or staff action today. Perhaps that would be a budget revision, a reserve draw, a delayed hire, or a policy change. Label each item as inform, discuss, or decide with an owner attached to each action.

Forward (10 – 15 minutes)

Consider your cash forecast for the next 60 – 90 days including any upcoming large expenditures. Think about opportunities that need early financial framing. This is where the team earns its keep: not explaining last month but shaping the next quarter.

Actions and close (5 minutes)

Capture in the notes, owners, dates, and what will be reported to the full board. Pray and adjourn on time.

And finally…

Over a year, pair this meeting agenda with seasonal items that must be addressed including budget adoption, midyear forecast, and an annual financial review by an audit committee. Consider an annual discussion with your investment professional and an insurance review as well during the year to complete your stewardship responsibilities.

Plan your work and work your plan will result in avoiding committee drift, executing important decisions and keeping your congregation moving forward with the purpose God has for you.