1. 1 TREASURERS’ WORKSHOP Roles & Responsibilities

2. 2 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 Overview

3. 3 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 at least 6 years (longer for items such as warranties, details of legacies etc.) Books and Records

4. 4 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 Books and Records

5. 5 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. Preparing accounts

6. 6 Which accounts? Annual Income Accounting Method Inspection or Audit PCC Guide Required <£250k Receipts & Payment (or accruals) InspectionR&P version £250k to £1m AccrualsInspection (**)Full version >£1m (*) (Inc or Exp) AccrualsAuditFull version Preparing accounts (*) or assets >£250k and gross assets >£3.26m (**) by a qualified accountant (ACA, ACCA, ACMA, etc.)

7. 7 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 Preparing accounts 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

8. 8 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 Preparing accounts

9. 9 Tips:  Use few, meaningful headings  Keep it simple - put details in the notes  Don’t use pence  Use columnar format  Must show previous year for comparison  Keep each statement to one side of A4 Preparing accounts

10. 10 Parochial fees:  Fees due for weddings and funerals,  Rates set by Archbishop’s Council  Some extras may be set by the PCC (e.g. organist/bells etc)  Fees are legally payable to the DBF Other Areas - Fees 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

11. 11 Parish Share and Both topics will be covered in later sessions Parish Finance Returns

12. 12  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 Juliette Hill Parish Trusts

13. 13 Sources of Finance Loans:  CCLA/Diocesan Loan Fund Assistance through the Finance Office Grants:  Fund for Church Growth (FCG) Application form available from Sue Anderson  Many External Trusts and Charities Assistance through Andrew Rainsford and Sue Whitehead

14. 14 Tax Reclaims  Gift Aid re Income Tax: effective rate now 25% see www.hmrc.gov.uk/charities/gift_aid for more detailswww.hmrc.gov.uk/charities/gift_aid  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 detailswww.lpwscheme.org.uk

15. 15 HANDBOOK for TREASURERS

16. 16 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

17. 17 CASHBOOK for TREASURERS