Subject: Attachment to Minutes 1/27
Date Sent: 01 Feb 2004 04:30 PM

Resolution Regarding Handling of Cash Shortages
January 27, 2004

WHEREAS, harsh monetary penalties will be imposed on AHUMC if federal or state
employment tax deposits or payments are not made or are made late; and

WHEREAS, individuals involved in the decision to make any payments other than payments of federal and state employment taxes can be held personally liable for federal and state income tax withholding and the employees' share of Social Security and Medicare taxes; and

WHEREAS, the Church Council of AHUMC unequivocally expects all employment taxes to be deposited and paid on time and does not want any volunteer or employee to be exposed to personal liability; and

WHEREAS, AHUMC's 2004 budget may be very tight in light of depleted reserves and reduced pledging, making advance guidance on how to handle a cash shortgage advisable; and

WHEREAS, the pastor is by far the highest paid staff person, especially in light of benefits in addition to salary such as housing and pension contributions, and is the most responsible of all staff for successful conduct of AHUMC's program

NOW THEREFORE BE IT

RESOLVED, That all federal and state employment tax deposits and payments shall be timely made, and under no circumstances should any other payment, including salary checks, be made when employment taxes are owed and funds are not available for paying them

RESOLVED FURTHER, That if, on a payroll payment date there are not sufficient funds available to pay both the net payroll and all associated employment taxes, even if such employment taxes are not due until a later date, the payroll shall be proportionately reduced such that the available funds cover the net payroll and all associated employment taxes, and in allocating the reduction, the entire reduction shall be made from the payments to the pastor, youth director, education director and secretary, and the pastor's salary shall be double weighted

RESOLVED FURTHER, That if salary payments are ever reduced pursuant to the foregoing resolution, such reduction shall not be restored prior to December 15, 2004, and shall only be restored to the extent that all other bills have been paid.