End of Financial Year – 30 June 2019 – HELP with End of Year Financial Statements

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 2019. 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 to undertake other work is limited during this time.

Once again, we will have the assistance of a Contract Accountant.  Last year Christine Chisholm provided that assistance and this year we are going to use Rebecca Hitchcock, who will be available to prepare the Annual Financial Statements on parishes behalf.  As most of you will know, Rebecca was one of our accountants in the office but has now moved to sunny Blenheim. Rebecca will do all the necessary work from there but is still able to access the resources of the office here in Christchurch as well as Xero. Her email address will remain the same (rebeccah@methodist.org.nz) and she will provide her telephone number to those who require assistance.

Last year we had a flat fee of $500.00 per entity.  This was heavy subsidised by the Board of Administration. What we discovered from previous years was 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 Rebecca 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 be charged $500.  There is some discretion.  However, if we believe that Rebecca 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 Rebecca 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 in completing their annual accounts to 30 June 2019.  Could you let Peter know by Friday 10th May 2019 by sending him an email as we need to be in a position to finalise arrangements with Rebecca 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.