Just a reminder that all Methodist Church entities that report either directly or indirectly to the Conference of the Methodist Church need to supply the General Secretary with a final signed copy of their Performance Report (financial statements) for the 12 months ending 30 June 2019 by 11 October 2019. PLEASE put a reminder in your diary or let the person doing the work know of the deadline.
These Performance Reports need to comply with generally accepted accounting practice, which for most Church entities means that they comply with the Tier 3 or Tier 4 reporting standards as issued by the External Reporting Board.
The Annual Return for those Church entities whose financial year end is 30 June 2019 (as set out in the Law Book) needs to include the Performance Report. This needs to be filed with Charities Services by 31 December 2019.
Also a reminder that you need to also look at your constitution and the Independent Assurance Policy of the Church to see if you also require an audit or review. For Parishes and Synods, the general rule is that if your operating expenditure is under $500,000 then you do not need either a review or an audit. If your operating expenditure is between $500,000 and $1,000,000 then you will need to have a independent review undertaken. If your operating expenditure is over $1,000,000 then you will need an audit. For some entities it is mandatory that an audit or review to be undertaken. This work needs to be undertaken by a qualified person. A qualified person is defined within the Financial Reporting Act as a person who is professional qualified to undertake the work.
If an independent audit or review IS undertaken, then any management report/letter received from auditor or reviewer will also need to be sent to the General Secretary.
The Independent Assurance Policy can be found HERE .
From the 1 January 2019 the way report related party transactions will change so care will be required. For Tier 3 and 4 reporting entities, the simple word “significant” will be removed from WHAT is required to be reported in the performance reports. While this may seem a simple change the effects may be quite dramatic. After the “annual audit season” is over, Peter van Hout will rewrite the related party document to reflect the changes but in the meantime, to understand what is required in the performance reports (financial statements) see this link…..Related Party Transactions
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.
Christine has started up a checklist for people when they are preparing their end of year financial statements for the Church. Click on the link below.
If you have anything to add to the checklist, we would welcome your feedback to either Peter or Christine in the Connexional Office.
Finalising Transactions for the Year End
The Tier 3 PBE reporting standard (PBE SFR-A (NFP))has provisions for depreciation on what is commonly known as property, plant and equipment. There is also an Explanatory Guide A5 (EG A5) that includes some helpful information relating to how to complete the optional template for Tier 3 reporting entities.
The attached document includes an explanation on the components of depreciation that relate to buildings using the cost method and determines that depreciation for buildings with long useful lives may need to be 0%.
If you need any further assistance, please let Peter van Hout know.
Depreciation for Tier 3 Using the Cost Model June 2017
Board of Administration – 50 Langdons Road
Saturday 10 June 2017
We have finalised the date and times of a Christchurch based workshops.
Session 1 – Saturday 10 June 2017 – 9.00am to 11.00am
- Beginner Topics on Xero, Management Reporting and Financial Reporting at Year End plus questions and answers
Session 2 – Saturday 10 June 2017 – 1.00pm to 4.00pm
- Advanced Topics on Xero and Financial Reporting at End of Year plus questions and answers
We would appreciate people wanting to attend to one of the sessions to let us know which session they wish to attend by e-mailing either firstname.lastname@example.org or email@example.com by 30 April 2017.
Please let us know of any questions or topics you would like to address at any of the sessions. We will send out a detailed agenda before the date of the workshop.
While the cost of attending the workshops are free, the Board of Administration is not in a position to cover attendee’s accommodation and travel costs. If this is an issue for some attendees, please talk to your parish or synod.
Car parking at Langdons Road should not be an issue. There is parking in the front of the building, in behind the building and also on the Road. Access into the building will only be via the front entrance. The back entrance will be locked and secure.
We are also looking at using Microsoft Skype to live broadcast the workshops for those who are interested but cannot attend. More on that later.
Tea, coffee and water will be made available.
Charities Services is kicking off its Lunchtime Webinar Series with an introduction to the Statement of Service Performance on 13 April 2017 at 12.00pm. IT IS FREE.
The Statement of Service Performance is a non-financial statement required under the new financial reporting standards and it’s important that you know how to use it well. In this webinar we will explain:
- how to make the Statement of Service Performance work for your charity;
- what outputs and outcomes are; and
- how you can use the Statement of Service Performance to celebrate your charity’s successes.
What’s a webinar and how does it work?
A webinar is a seminar or presentation that is delivered online.
You can participate in these sessions from your computer or any mobile device (smart phone or tablet) and it’s free. You just need a reliable internet connection. We also recommend using the internet browser Google Chrome.
All webinars start at 12.00pm and run for approximately 1 hour, unless specified.
We will be talking for around 30 minutes and at the end of the presentation, we will answer some of your questions. The final webinar will be published on our website and can be viewed any time.
Date: 13 April 2017
Time: 12.00pm – 1.00pm
Location: Anywhere with a reliable internet connection
People in the Lower North Island may be interested in this Workshop. Topics include:include:
- Charities Commission
- Responsibilties of Volunteers
- Health & Safety in Employment Act
- Protecting Church Buildings and Assets
- Mission Travel Insurance
- Clergy Allowance and Tax
- Key Staff and Succession Planning
- Armourbearer Insurance
- XRB Accounting Standards
- Christian Savings
- Panel Discussion
Peter van Hout will be a speaker (XRB Accounting Standards). He will remain in Wellington on the Tuesday evening and if there is enough interest he will be happy to arrange an evening meeting with Treasurers to discuss Xero and other financial reporting concerns.
The link to the above named Workshop is: CLICK ME
If you would like Peter to run a two or three hour workshop on Xero and Financial Reporting then e-mail him directly (firstname.lastname@example.org) by the end of March please.
The XRB and Charities Services invite you to join them for this free webinar.
Designed for accountants and preparers of annual accounts of small charities adopting Tier 3 and Tier 4 standards, this webinar will cover:
- How the not-for-profit standards fit into the overall financial reporting framework in New Zealand;
- Differences between the current and former financial reporting requirements;
- Some detailed aspects of the Tier 3 and Tier 4 standards; and
- New assurance requirements for charities.
Charities Services has so far received more than 500 financial reports. Learn from the regulators about some common misunderstandings to make sure you can provide compliant financial reports for your clients.
We will be running more webinars for charities in the near future on selected topics. Be sure to keep an eye out for these.
Webinar dates and times:
Tuesday 26 July 2016 at 10.00am-11.30am
Tuesday 26 July 2016 at 1.00pm-2.30pm
Wednesday 27 July 2016 at 7.00pm-8.30pm
Register in advance on the XRB website (click here).