Category Archives: Financial Reporting Standards

Comments, questions and answers on financial reporting standards issued by the External Reporting Board that are required to complied with by registered charities.

Related Party Transactions

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

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.

End of Year Checklist

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

Tier 3 – Depreciation – Buildings

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

Webinar on Annual Reporting – An overview for Tier 3 & 4 Charities

 

One of the obligations of being a registered charity is reporting to Charities Services every year so you remain registered.  Charities Services are running a seminar and its free.
If you’re a new charity, a new committee member or even an experienced one, join Charities Services for an overview of Annual Reporting to Charities Services for Tier 3 and Tier 4 charities, next Tuesday 27 June at 12pm (approx. 45 minutes).

If you’re confident with the annual reporting process, or if you’re a Tier 1 or 2 charity, this webinar may not be for you as we’ll be covering the basics. But feel free to forward this invitation to anyone else who may be interested.

Which tier is your charity?

Before registering, make sure you know what tier your charity needs to report to. Check out the information on their website.

Can’t make it?

The webinar recording, handout and links to other helpful information will be published on the Charities Services website and linked to on their Facebook page after the webinar (28 June 2017). So you don’t need to ask them for a copy.

They will also send an automated email the following day (28 June 2017) to everyone who registered for the webinar with this information (even if you didn’t attend), so if you can’t make the live event, feel free to register anyway.

Click this link to register.

 

Christchurch Workshop for Treasurers

Treasurers Workshop

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 peterv@methodist.org.nz or saraha@methodist.org.nz 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.

 

Service Performance Report – FREE ONLINE SEMINAR

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.

The details

Date: 13 April 2017

Time: 12.00pm – 1.00pm

Location: Anywhere with a reliable internet connection

Register here

 

Church & Not-for-Profit Forum-9 May 2017-Lower Hutt Assembly of God

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 (peterv@methodist.org.nz) by the end of March please.

Financial Reporting for Small Charities

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).

Local Methodist Women’s fellowships

We have received a number of inquires regarding local women’s fellowships and the need to have the financial transactions incorporated into a set of parish financial statements each financial year.

Each registered charity (for the Methodist Church that means every parish) needs to prepare financial statements which incorporate ALL of the activities of the registered charity (the parish).

As a local women’s fellowship is “attached” to a local parish are its activities are closely aligned with those of the parish, the financial transactions of a local women’s fellowship need to be incorporated into the parish financial statements each financial year.  This can be achieved in a number of ways depending on the circumstances of the parish.  This be discussed with the accountants in the Connexional Office if need be.

The preparers of the financial statements of the parish should make contact with the local women’s fellowship to obtain the financial transactions or financial statements of the women’s fellowship.  The National Executive of the Women’s fellowship have confirmed that the financial year of a local women’s fellowship has been aligned with the the National Executive and parish balance date of 30 June so obtaining the information should not be a problem.