TREASURERS

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TREASURERS WORKSHOP Roles Responsibilities
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Overview

• Key Responsibilities (Things you have to do)
• Keep accurate books and records for the PCC
• Prepare statutory accounts for the PCC

• Other Areas (Things you will probably
  end up doing)
• Fees
• Parish Share
• Parish Finance Return
• Parish Trusts
• Sources of Finance Grants and Loans
• Tax reclaims

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Books and Records

• The books and records you keep must
• Show all money received and spent, with
  explanations
• Include a record of assets and liabilities
• Enable the financial position to be shown at any
  time
• Enable statutory accounts to be prepared
• Be kept for 6 years

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Books and Records

• Typical books and records will include
• An analysed cash book (DBF can provide an Excel
  version)
• Cheque stubs
• Paying-in books
• Bank statements
• Weekly/daily parish collection summaries
• Invoices and other documentation for payments
• Correspondence file
• Copies of historic statutory accounts and budgets

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Preparing accounts

• Context
• PCCs are charities
• PCCs with over 100k income must register with
  the Charity Commission
• Other PCCs are excepted from registration which
  is why they do not have a charity number
• ALL PCCs must comply with relevant charity law
• In accounting terms this currently means SORP
  2005
• There will be a new SORP for 2015, affecting
  mainly larger charities further details will be
  provided.

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Preparing accounts
Which accounts?
Annual Income Accounting Method Inspection or Audit PCC Guide Required
lt250k Receipts Payment (or accruals) Inspection RP version
250k to 500k Accruals Inspection Full version
gt500k (Inc or Exp) Accruals Audit Full version
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Preparing accounts

• There are four types of fund
• Endowment capital cannot usually be spent (but
  income can)
• Restricted must be used for particular purpose
• Designated earmarked by the PCC
• Unrestricted for any purpose of the PCC

• NB
• Designated funds have no legal status and can, in
  fact, be used by the PCC for any purpose
• Only the original donor can restrict funds, not
  the PCC

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Preparing accounts

• Year end process
• Prepare accounts
• Have independent examination done (or audit if
  required for larger charities)
• Accounts to PCC for approval and signature
• Independent examiner signs report
• Display accounts for 7 days prior to APCM
• Accounts received by APCM
• Send accounts to The Old Deanery within 28 days
  of APCM

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Preparing accounts

• Tips
• Use few, meaningful headings
• Keep it simple - put any detail in the notes
• Dont use pence
• Use columnar format
• Must show previous year for comparison
• Keep each statement to one side of A4

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Other Areas - Fees

• Parochial fees
• Fees due for weddings and funerals,
• Rates set by Archbishops Council
• Some extras may be set by the PCC (e.g.
  organist/bells etc)
• Fees are legally payable to the DBF

• During Vacancies (inter-regnum/sequestration)
• Total fees (incl. PCC portion) the same, but
  retired clergy can retain two-thirds of
  incumbent/priest-in-charge fee with the remaining
  third payable to the diocese

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Parish Share and
Parish Finance Returns
Both topics already covered in earlier sessions
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Parish Trusts

• Permanent trust monies and land legally must be
  vested with the Diocese (Bath Wells DBF)
• The Diocese is custodian trustee only, not
  management trustee
• If the Diocese is holding PCC funds which are not
  permanent endowment, these can be returned
• If your trust is very small it may be possible to
  wind it up. New legislation has simplified the
  process contact Sally Westlake/Juliette Hill or
  Sue Anderson

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Sources of Finance

• Grants
• Fund for Church Growth (FCG)
• Application form available from Sue Anderson
• Many External Trusts and Charities
• Assistance through Andrew Rainsford and Sue
  Whitehead

• Loans
• FCG and/or CCLA (via DBF)
• Assistance through the Finance Office re CCLA

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Tax Reclaims

• Gift Aid re Income Taxeffective rate now 25
• see www.hmrc.gov.uk/charities/gift_aid for
  more details
• Listed Places of Worship Grant Scheme re VAT
  makes grants towards the VAT incurred in making
  repairs to listed buildings mainly used for
  public worship
• see www.lpwscheme.org.uk for more details

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HANDBOOK for TREASURERS
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Current Account

• Nat West Cash Management Scheme
• diocesan pooling of 500 current accounts
• no bank charges
• quarterly interest credits
• easier mechanism for change of signatories
• If your PCC is not within this scheme but would
  like to be, please contact the Finance Office
  for more details

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CASHBOOK for TREASURERS