The Diocese of Toronto Budget 2002-2002
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Transcript The Diocese of Toronto Budget 2002-2002
Parish Finance
Parish Leadership 101 Workshop
2014
Stuart Hutcheson CMA
Interim Treasurer & Director of Finance
416-363-6021 x 238 [email protected]
1
Legal Status
Provincial: Ontario Corporations Act (Not-forProfit Corporations Act, further delayed)
Diocesan: Constitution and Canons
Canada Revenue Agency: Registered Charity
2
Resources for Churchwardens
Diocesan Website: www.toronto.anglican.ca/churchwardentoolbox/
Parish Finance Manual:
www.toronto.anglican.ca/churchwarden-toolbox/parishfinance-manual/
Parish Leaders’ Manual: www.toronto.anglican.ca/parishadministration/
Canada Revenue Agency – Charities
www.cra-arc.gc.ca/chrts-gvng/chrts/menu-eng.html
Government of Ontario – Not for Profit Corporations
http://www.citizenship.gov.on.ca/english/pp/legislative.shtml
3
Protection of Personal Information
“Privacy Standards Policy”
The Churchwardens have:
access to view all books and records of the
congregation, however;
Only for the purpose of satisfying themselves re:
controls, procedures and duties.
4
Filing Requirements
March 15th – Churchwardens’ Parochial Return
June 30th - T3010 (Charitable Information Return
for CRA) is due 6 months after year end
HST return - Annually or Semi-Annually if
registered.
Public Service Bodies Rebate Form, every 6 months
(www.cra-arc.gc.ca/E/pub/gp/rc4034/README.html)
5
Filing Requirements
Churchwardens Parochial Returns:
As stated on the returns:
“Failure to file this return or the Incumbent’s return by
March 15 may cause the Incumbent and Lay Members
of Synod to forfeit their right to a seat in a session or
sessions of Synod.”
T3010 – CRA’s Charity Information Return
CRA can (and has!) revoke your charitable status,
whereupon the church is no longer exempt from tax and
cannot issue donation receipts.
6
Financial Statements
Government Requirements
CRA requires financial statements. Audit is
recommended audit for charities with revenues > $250K
Ontario Corporations Act
Revenues > $100K, Audit
7
Financial Statements
Canonical Requirements
Canon 14, section 14(7) states an audit is required
Canon 14, section 14(4) allows for a Review
Engagement or Notice to Reader if revenues are less
than $100K with:
Approval of Area Bishop
Extraordinary resolution passed at Vestry
8
Review Levels
Audit
Review
Compilation/
Notice to Reader
Application of
GAAP
Application of
GAAP
Compiling
information
Communication Audit Report
provided
(opinion)
Review
Engagement
Report
Notice to Reader
(no review)
Level of
Assurance
Highest level
Moderate level
No assurance
Who can
perform
Licensed Public Licensed Public
Accountant (if Accountant (if
charging)
charging)
Nature of
involvement
Any accountant
9
Inflow of Funds - HST
Public Service Bodies’ Rebate (http://www.craarc.gc.ca/E/pub/gp/rc4034/) up to twice a year for nonregistrants
50% of federal portion of HST (5%)
82% of provincial portion of HST (8%)
10
HST
If Registered for HST:
Charge, collect and remit HST on your taxable supplies
annually or semi-annually.
Registration is not required if you qualify for the
Small Supplier exemption:
Less than $50,000 in taxable sales (not including rent) or;
Less than $250,000 in gross revenues
Must be in good standing as a Registered Charity
with CRA.
11
HST
Rentals
Renting/leasing of church property - HST exempt.
Cemeteries
Interment is exempt from HST unless the sale of the plot is a
true sale
Rectory expenses (taxable benefit)
Not eligible for HST rebates (utilities)
12
Inflow of funds - Rentals
Public Benefit Test – CRA’s measurement for
charities
Cannot benefit private individuals (i.e. rental prices cannot be
different for members vs. non-members)
Non-charitable activities?
Related businesses are allowed (see Decision Tree)
Substantially all the work is done by volunteers
Business is linked, but subordinate to the charity’s purpose
13
Inflow of Funds – Donations & tax receipts
Plate offerings
PAG (pre-authorized giving)
Bequests (from an Estate)
Endowments
Designated gifts
Gifts of stock
Gifts of assets or supplies
Services (labour) do not qualify as a gift, and
cannot be receipted
14
Responsibilities of Funds - Trustees
The Churchwardens
responsible for following the provisions of the Public
Guardian and Trustee Act of Ontario.
If there is a misapplication of funds
Congregation will be required to make restoration.
The Churchwardens may be required to personally make restoration.
Public Guardian and Trustee Act of Ontario
Restricted funds cannot be pledged as collateral nor can
the Congregation borrow from restricted funds.
15
Consolidated Trust Fund (CTF)
Fund managers:
Foyston Gordon & Payne
Letko Brosseau
Scotia Asset Management
Northleaf Capital Partners
Dividend (distribution) is 4.5% of the three
year rolling average unit value.
2014 - $8.23 per unit paid out quarterly
16
Consolidated Trust Fund (CTF)
Value of what we have in the CTF at Dec 31, 2013:
Cash & Short-term deposits
Bonds
$
Prov. & Municipal
Corporations
Stocks & Mutual funds
Real Estate
TOTAL
$
5,262,500
5%
22,683,883
3,458,151
26,142,034
23%
82,032,213
70%
2,871,441
2%
116,308,188
100%
17
Consolidated Trust FundPerformance
1 year
3 year
5 year
CTF
18.7%
8.9%
10.6%
Benchmark
13.4%
6.9%
9.6%
Value added
5.3%
2.0%
1.0%
18
Rectory Funds
Guidelines: Re: The Sale of Rectories and the use of
funds therefrom.
Invested in the Consolidated Trust Fund
Dividends towards housing allowance (up to 100%)
Surplus: application can be made to use or borrow
19
Cemetery Fund
Fund Trustee: Scotia Trust
Fund manager: Scotia Asset Management
Principal amount cannot be withdrawn –
perpetual care
Dividend (distribution) is 4.5% of the three year
rolling average unit value.
2014 - $6.44 per unit paid out quarterly
20
Cemetery Fund
Value of what we have in the Cemetery Fund at Dec 31, 2013:
Cash & Short-term deposits
Bonds
$
Gov of Canada
Prov. & Municipal
Corporations
Stocks
TOTAL
$
287,800
3%
928,603
750,225
2,131,064
3,809,892
39%
5,760,919
58%
9,858,613
100%
21
Cemetery Fund- Performance
1 year
3 year
5 year
Cemetery Fund 9.1%
5.7%
8.9%
Benchmark
4.5%
3.7%
7.9%
Value added
4.6%
2.0%
1.0%
22
Withdrawals
Both wardens approval/signature
2 weeks turnaround after receiving request
+ $250k – 2 extra weeks notice
May require Vestry approval or Diocesan
Council approval, e.g. Rectory Funds
23
FaithWorks Report
& Remittance Procedure
FaithWorks funds held “in trust”
Remit to the Diocese quarterly.
Parish may retain 15% for local outreach
Campaign ends on Dec 31 each year
Report & funds must be provided to the
Stewardship office of the Diocese within the first
week of January of every year
24
Our Faith – Our Hope
All donations are received and receipted by the Diocese
Donations of stock are to be processed through the
Diocesan brokerage account
Rebates (40%) will be paid to the parish quarterly (not
assessable on CWPR)
Promote how rebate is used re: “Case for Support”
Diocese will provide list of donors who have completed
their pledges to allow parishes to follow up
25
Fundraising
Financial statement presentation for designated funds
Flexibility within the restrictions
allow for the possibility for your parish council or
advisory committee to change the use
26
Diocesan Grants
Ferguson – home for aged men or women
Carleton Fund – clergy-occupied rectories
Baker Fund – church school facilities
Church Development Fund – loans for renewing and growing ministry
Church Development Rectory Fund – loans for purchasing/building rectories
Ministry Allocation Fund
Real Estate
Congregational Growth/Development
Innovative and new forms of ministry
Curacy Grants – support curacies at a parish
Reach Grants – local ministry
Our Faith – Our Hope
Building the Church for Tomorrow
Revitalizing our Inheritance
Area Council – Ministry Development Grants
27
Diocesan Requirements
Monthly billing from Diocese :
costs of clergy
Allotment (Canon 4)
Overdue list (31/12/13):
19 parishes greater than 3 months (hard list)
26 parishes less than 3 months (soft list)
Total outstanding/unpaid $1,292,000
28
Diocesan Requirements
Overdue policy:
Interest charged at 3% above CIBC Prime (current
charge 6%)
Request for payment plan
Visit parish to assist
Bishops are always kept informed (monthly)
Ineligible for Diocesan Grants
Churchwardens role may be taken over by an
Administrator appointed by Diocesan Council
29
Record Keeping
Bank Accounts – you need at least one !
CIBC (preferred fee schedule available)
$10 per month for basic services
Sam Marra 416-980-4538,
[email protected]
Cemetery funds & parish funds must be
separated
30
Keep on-side with the rules
Various pieces of government legislation set
out rules:
CRA and Registered Charity requirements
Payroll requirements
Ontario Corporations Act (Ontario Not-for-
Profit Corporations Act, not yet in force)
31
Record Keeping
Keep 3 years of donation receipts
Any back up records to verify for 3 years also (i.e. copy
of cheque, cheque stub, envelope etc.)
Accounting records need to be kept for 7 years.
Records kept at the address on file with CRA (church
address). Back ups at another location
32
Donation Receipting (CRA
guidelines)
Receipts must include the following:
Statement: “official receipt for income tax purposes”
Church name and address
Charity’s registration number
Place and locality where receipt was issued
Amount of donation
Year of donation
Date of receipt if different than year of donation
CRA’s name and website (cra.gc.ca/charities)
Unique serial number
Signature of authorized individual (we recommend a
churchwarden.)
33
Record Keeping - salaries
Stipend paid clergy pay processed by the Diocese
Clergy paid on units and other employees (eg;
administrator, organist) processed by the parish. (see
payroll deductions online calculator provided by CRA
(http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoceng.html)
Payroll records must be kept for 7 years.
34
Permanent Records
Minutes of Vestry, Advisory Board etc.
All documents and bylaws (Constitution and Canons)
Capital additions (e.g. building project)
Insurance policies (very important!)
Send to Diocesan archives when finished
35
END
But this is only the beginning of an exciting new
year for you as a volunteer in your Parish !!
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