Category Archives: Annual Accounts Format

Comments, questions and answers about the format, preparation and filing of annual accounts.

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)

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.

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.

Performance Reports – 30 June 2017

Just a reminder that your fully completed financial statements (now called the Performance Reports) need to be sent to the General Secretary at the Connexional Office by Friday 12 October 2017 at the very latest.

The annual Performance Report needs to be in a format that meets the financial reporting standard that you have elected to comply with and that you are able to use (Tier 1,2,3 or 4).

If the Operating Expenditure shown on the Statement of Financial Performance (profit and loss account) is over $500,000 this year and last year, you will require an independent assurance report (a review or audit).  Please refer to the Resources Page of the Accounting Blog site for a copy of the Assurance Policy of the Methodist Church.

 

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

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.