Transcript Document

TREASURERS’
WORKSHOP
Roles & Responsibilities
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Overview
Key Responsibilities
(Things you have to do)
 Keep accurate books and records for the PCC
 Prepare statutory accounts for the PCC
Other Areas
 Fees
(Things you will probably end up doing)
 Parish Share
 Parish Finance Return
 Parish Trusts
 Sources of Finance: Grants and Loans
 Tax reclaims
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Books and Records
The books and records you keep must:
 Show all money received and spent, with explanations
 Include a record of assets and liabilities
 Enable the financial position to be shown at any time
 Enable statutory accounts to be prepared
 Be kept for 6 years
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Books and Records
Typical books and records will include:
 An analysed cash book (DBF can provide an Excel version)
 Cheque stubs
 Paying-in books
 Bank statements
 Weekly/daily parish collection summaries
 Invoices and other documentation for payments
 Correspondence file
 Copies of historic statutory accounts and budgets
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Preparing accounts
Context:
 PCCs are charities
 PCCs with over £100k income must register with the
Charity Commission
 Other PCCs are “excepted” from registration which is
why they do not have a charity number
 ALL PCCs must comply with relevant charity law
 In accounting terms this currently means SORP 2005
 There will be a new SORP for 2015, affecting mainly
larger charities; further details will be provided.
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Preparing accounts
Which accounts?
Annual
Income
Accounting
Method
Inspection or
Audit
PCC Guide
Required
<£250k
Receipts &
Payment
(or accruals)
Inspection
R&P version
£250k to
£500k
Accruals
Inspection
Full version
>£500k
(Inc or Exp)
Accruals
Audit
Full version
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Preparing accounts
There are four types of fund:
 Endowment: capital cannot usually be spent (but income can)
 Restricted: must be used for particular purpose
 Designated: earmarked by the PCC
 Unrestricted: for any purpose of the PCC
NB:
 Designated funds have no legal status and can, in fact, be
used by the PCC for any purpose
 Only the original donor can restrict funds, not the PCC
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Preparing accounts
Year end process:
 Prepare accounts
 Have independent examination done (or audit if required
for larger charities)
 Accounts to PCC for approval and signature
 Independent examiner signs report
 Display accounts for 7 days prior to APCM
 Accounts received by APCM
 Send accounts to The Old Deanery within 28 days of
APCM
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Preparing accounts
Tips:
 Use few, meaningful headings
 Keep it simple - put any detail in the notes
 Don’t use pence
 Use columnar format
 Must show previous year for comparison
 Keep each statement to one side of A4
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Other Areas - Fees
Parochial fees:
 Fees due for weddings and funerals,
 Rates set by Archbishop’s Council
 Some extras may be set by the PCC (e.g. organist/bells etc)
 Fees are legally payable to the DBF
During Vacancies (inter-regnum/sequestration):
 Total fees (incl. PCC portion) the same, but retired clergy can
retain two-thirds of incumbent/priest-in-charge fee with the
remaining third payable to the diocese
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Parish Share and
Parish Finance Returns
Both topics already covered in earlier sessions
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Parish Trusts
 Permanent trust monies and land legally must be vested
with the Diocese (Bath & Wells DBF)
 The Diocese is custodian trustee only, not
management trustee
 If the Diocese is holding PCC funds which are not
permanent endowment, these can be returned
 If your trust is very small it may be possible to wind it up.
New legislation has simplified the process – contact Sally
Westlake/Juliette Hill or Sue Anderson
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Sources of Finance
Grants:
 Fund for Church Growth (FCG)
Application form available from Sue Anderson
 Many External Trusts and Charities
Assistance through Andrew Rainsford and Sue Whitehead
Loans:
 FCG and/or CCLA (via DBF)
Assistance through the Finance Office re CCLA
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Tax Reclaims
 Gift Aid re Income Tax:
effective rate now 25%
see www.hmrc.gov.uk/charities/gift_aid for more details
 Listed Places of Worship Grant Scheme re VAT:
makes grants towards the VAT incurred in making repairs
to listed buildings mainly used for public worship
see www.lpwscheme.org.uk for more details
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HANDBOOK
for
TREASURERS
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Current Account
 Nat West Cash Management Scheme:
diocesan pooling of 500 current accounts
no bank charges
quarterly interest credits
easier mechanism for change of signatories
If your PCC is not within this scheme but would like to be,
please contact the Finance Office for more details
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CASHBOOK
for
TREASURERS
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