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End of Financial Year Preparation

It is nearly Happy New Year time for prepares of financial statements within the Church.

The Independent Assurance Policy (audit or review) for financial statements has not changed from last year and can be downloaded from HERE. It has already been sent out as part of the annual statistics package in May 2018.  In summary, if your operating payments are under $500,000 then the Church does not require an audit or review (but you can still have one done if you choose to. If your operating payments are between $500,000 and $1,000,000 then the financial statements need to be reviewed by a qualified person (normally a Chartered Accountant in Public Practice).  For operating expenditure greater than $1,000,000, then an audit is required to be undertaken by a qualified person (normally a Chartered Accountant in Public Practice).

If you do have an audit or review undertaken, then the auditor or reviewer is required by the assurance standards to also issue a “management letter” or “business issues” report.  This must also be submitted with your annual accounts to the General Secretary.

Please remember that the financial statements need to be prepared using the appropriate financial reporting standards issued by the External Reporting Board (Tier 1, 2 , 3 or 4).   If you need support in the preparation of these, then the Connexional Office is able to assistance.

Things to note are:

  • If you are using Xero, please make sure that all bank transactions are coded and that the bank accounts are fully reconciled.
  • If you have MTA and CB&L accounts, then please make sure that journal entries are undertaken to balance these accounts with the statements you have received from the Connexional Office.  These statements may not appear until the second or third week of July.
  • If you have any loans outstanding, once again undertake the necessary journal entries to balance these off with the appropriate interest paid and capital repayments journaled.
  • Were there any large repairs and maintenance items that should be capitalised as a fixed asset or did you purchase new furniture, computers, etc. that need to be on the fixed asset register?
  • If you have fixed assets, has depreciation been run and entered into the accounts.
  • Cast your eye over the entries going through the bank accounts to make sure they have been allocated to the correct accounting code.
  • Has GST been claimed on only those tax invoices that have GST on them and that tax invoices are in the files?
  • Have services that the Church has provided (hire of hall, etc.) been correctly charged.
  • Look at and start documenting your Outcomes and Outputs that your Parish has undertaken in the year.

 

Statistic Forms and Annual Financial Statements – 30 June 2018 – Timetable

The Connexional Office have sent out the annual bundle of statistic forms, guides and timetable for the collection of statistical and financial information for the year ending 30 June 2018.  Attached is the general information form which has the timetable associated with it.  If you have NOT received the email regarding this, please email the Connexional Office and ask for a set.

Two key dates are:

Completed online or paper based statistics Form M2 – Due date is Friday 10 August 2018

Financial Statements for the year in the correct format (Tier 2, 3 or 4) with the audit or review report attached, when required by Church Policy – Due date Friday 12 October 2018

Front page Methodist Parish Statistics Checklist 2018 (YELLOW)

Cyber Security

Here is a flyer that the Connexional Office have produced to make you think about cyber security, backups and the things that can be done to make yourself, the Parish (or any other entity within the Church) safe.  This will help to minimise risks while being connected to the internet and the world wide web.

Keep Yourself Safe Online Cyber Security

Health and Safety – Care for Our People Manaakitia ā Tātou Tāngata

Ata mārie koutou!

You may have noticed in the last E-messenger newsletter that the Church now have documents available on the Methodist Church of New Zealand website to help Care for Our People Manaakitia ā Tātou Tāngata.

http://www.methodist.org.nz/caring_for_our_people

Please would you let everyone know that this page is active and information is available for them to use.

The templates available so far are for  Emergency Response Plans and the Connexional Office will notify you when new material is released (which will be no more than once a month).

Ngā mihi

End of Year Financial Statements – 30 June 2018 – Assistance

The Accountants within the office of the Board of Administration of the Methodist Church of New Zealand are in the process of planning and allocating work for July, August and September 2018. As you will be aware this is a very busy time of year with many financial statements needing to be prepared, audited or reviewed, signed and distributed.  The time we have available is limited during this time.

Once again, we will have the assistance of a Contract Accountant, Christine Chisholm, who will be available to prepare the Annual Financial Statements on parish’s behalf.  She’ll be working abroad from London but working through the Methodist Church and have access to MCNZ systems.  The hours she will be available to call treasurers will be from 8am to 10.30am and 6pm to 8pm Monday to Friday New Zealand time.  Contact details will be given to those entities who wish to have Christine prepare the annual financial statements later in the year.

Last year we had a flat fee of $500.00 per entity.  This was heavy subsidised by the Board of Administration. What we discovered last year was that that the hours required to prepare the financial information ready for the financial statements to be finalised ranged from an hour or so to 35 to 40 hours.  This year we are looking at a two tier system based on the hours that Christine provides help in preparing the accounting information ready for the production of the financial statements and then preparation of the financial statements.  The cost structure proposed is this:

Hours Worked Cost
Up to a maximum of 10 hours $500.00
Over 10 hours of $500.00 plus the actual hourly cost for time over 10 hours.

 

The Board of Administration is still providing a subsidy for this work and the above charges do not reflect the actual costs.  The service being provided acknowledges that there are some people who require little help and others that require significant help.  For those who used this service last year and are likely to be in the second group, Peter van Hout will email you separately in April to let you know.

While the above table is the set rule, we will take care on the charges.  If your final hours used were 10.5 hours, for example, then you will not be charged for the additional 0.50 of an hour and you would not be charged $500.  There is some discretion.  However, if we believe that Christine will need more hours than first anticipated, then we will alert you to that. I do not wish to be in a position whereby the other accountants in the office are placed under additional stress during July, August and September and hence why Christine has been engaged to do the work.

Can you indicate to Peter van Hout (peterv@methodist.org.nz) if there is a strong likelihood that the parish will require us to assist them in completing their annual accounts to 30 June 2018.  Could you let Peter know by Friday 4th May 2018 by sending him an email as we need to be in a position to finalise a contract with Christine as soon as possible.  We will also try to give you a “rough” idea on your likely cost based upon the hours Christine spent on your accounts last year.

Tax Donation Receipts-31 March 2018

Over the last couple of years staff within the Connexional Office have had to deal with concerns expressed by congregational members that the Inland Revenue Department has rejected donations paid to the Church by them.  While it has not been a major concern within the wider Church we have reflected upon the advice we have sent out to the wider Connexion and have updated our information with the help of the Inland Revenue.

Attached to this email are three documents, which are the same, other than the language within them.  One is in English, one is in English with Tongan translation and the other is English with a Samoan translation.

The documents listed below are the latest information we have available and if followed should allow for the smooth processing of tax donation receipts for the tax year ending 31 March 2018.

If a congregational member has an issue, we would appreciate a note regarding it with the details and the Connexional Office will follow it up with the IRD.  However, final resolution of the  matter is between the IRD and the congregational member, but we will attempt to ensure the system works for all parties concerned.

If we can be of further assistance, please let Peter van Hout in the Connexional Office  know.

Donation Tax Credits under the Income Tax Act 2007 Short Form Samoan

Donation Tax Credits under the Income Tax Act 2007 Short Form Tongan

Donation Tax Credits under the Income Tax Act 2007 Short Form (English only)

Free accounting assistance for registered charities in your area – Book an appointment now! 

This was an e-mail that i received from Charities Services.  Some of you may be interested in this.

Kia ora, talofa lava and warm greetings,

Does your registered charity need some help with its Annual Return, Performance Report or some face to face support to get your head around the financial reporting standards?

Charities Services’ accountants will be available on Thursday 22 February from 12 – 4pm in our DIA Manukau office to help registered charities with any accounting queries related to their charity’s Annual Return, Performance Report and the financial reporting standards. If your charity would benefit from some free accounting expertise, book your appointment now.

How it works

We have limited appointments available, so please select your preferred appointment time here. The appointments will be for approx. 20 minutes, so to maximise your time with us you’ll be asked to provide:

·         The legal name or Charities Registration number (CC number) of your charity.  You can find this on the Charities Register.

·         A brief description of your accounting query.

Once you’ve submitted your request for an appointment, we’ll get in touch with you to confirm the time of your appointment with one of our accountants.

*If you’re receiving this email but you’re not in charge of your charity’s finances, please forward this invitation on to the relevant person in your charity, or anyone you think might be interested.

GST Returns – Methodist Church Online System

There may be times when you need to enter a GST return for a month that is NOT the current GST month and you need to change the dates.  This can be done but you need to change the “Covering Period From” and the “Covering Period To” dates on the GST form that is presented when you log into the GST System.  These are highlighted below.

Please note that ALL entities that report to the Conference of the Methodist Church of New Zealand are registered under one GST return. All Methodist entities are REQUIRED to lodge a GST return in the Methodist Church GST system on a monthly basis ON or BEFORE the 25th of each month.

For those of you using Xero, you need to deal with the GST return in Xero, finalise it for the month and then enter the GST information from Xero into the Methodist Church GST system.  At present there is no automatic way of transferring the GST information from Xero to our GST system.

“Catching up” on GST returns going back more than two months is not considered acceptable to the IRD and may also not be allowed by the Church.

 

Performance Reports (Annual Financial Statements)

For all Methodist entities that report to the Conference of the Methodist Church of New Zealand, a copy of the Performance Report (your annual financial statements) needs to be with the Connexional Office by 5.00pm Thursday 12 October.

If you are NOT able to meet this deadline, please inform the Connexional Office.

Please remember that you are also required to lodge your approved Performance Report with Charities Services as part of the Annual Return.  This needs to be done by 31 December 2017.