For some parishes and entities within the Church, they would have received wage subsidies from the government (via the Connexional Office) to enable them to keep people employed.
The scheme was introduced to keep people in employment during the lockdown period.
We need to deal with the accounting issues that arise for us.
There are two parts.
- The gross payment of wages and salaries should be coded in the normal manner so that the accounting system reflects the true costs of employment and ministry costs associated with the presbyter and employees within the parish. There is no change here.
- The wage subsidy payment that the parish receives should be coded into grants received, as income. There is no need to set up a special code within the accounting system but you may wish to include a reference to COVID19 wage subsidy when the transaction is coded.
In your report to the Parish Council you may wish to highlight the amount received.
For the end of year financial statements there will be no need (in most cases) to show the amount as a separate amount as it is not significant or material when you take into account all of the income and expenses of the parish. If the amount received in the whole of the financial year is significant and material then there will be an obligation to show it as a separate amount. However parishes needing to show the wage subsidy as a separate amount will be few, in my view.
If the parish does wish to detail the amount received, I would suggest a note in the accounts under “Other Information” a note that reads something like:
Within Grants Received is an amount of $x,xxx which relates to the wage subsidy received during the COVID-19 lockdown during March to June 2020.