Treasurers Day 30 0 September ptember 201 016 Bath & Wel - PowerPoint PPT Presentation

Treasurers’ Day 30 0 September ptember 201 016 Bath & Wel ells ls Diocesa cesan n Board rd of Fina nance nce

INTRODU RODUCTION CTION • Welcome, thank you for coming, enjoy the day! • Health and safety: location of fire exits and toilets • Format of day  Refreshments breaks ~ every 90 minutes  Lunch arrangements  Finish by 3.30 p.m. • Opportunity for questions throughout day • Feedback at end

Opening prayer “ Instead, speaking the truth in love, we will grow to become in every respect the mature body of him who is the head, that is, Christ. From him the whole body, joined and held together by every supporting ligament, grows and builds itself up in love, as each part does its work.” (Ephesians 4vv15 -16, NIV)

Who o is th the e Dioce cese? se? • Diocese of Bath & Wells created over 1,100 years ago in 909 • Population of over 900,000 covering 1,600+ square miles • 561 churches,464 parishes, 181 benefices • 19 Deaneries, 3 Archdeaconries • 171 primary and 9 secondary schools (101 VC, 45 VA, 34 Ac) • The Diocesan Board of Finance (DBF) has existed for 100 years • Both a registered charity and a company limited by guarantee • 193 stipendiary clergy, 58 employed staff (incl. 6 ALMs) • £14m Income (incl. house sales), over £9m Common Fund • £93m Net Assets / Funds including:  248 (mainly clergy) houses (£54m)  Over 3,000 acres of glebe agricultural land (£19m)  Other investments (£22m - equities, bonds, property)

What doe t does th s the D e DBF do do? • Management of funds, property and investments • Preparation of annual expenditure budget • Advising on action needed to raise income • Oversight of actual expenditure by departments • Acting as employer to salaried staff • Maintaining the books of diocesan bodies and trusts • Advising Synod of the financial aspects of its policies • Relevant advice on financial matters to PCCs

Di Dioc ocesa esan n Str tructu ucture re • Diocesan Synod  elected members from across 19 deaneries (lay/clergy)  normally meets 3 times a year (March, July and October) • Bishop’s Council  Standing Committee of Synod  Board of Directors of the Diocesan Board of Finance • Finance Group  Acts for and assists Board in its financial work  Includes Board members and other invited members with diocesan officers in attendance • Board delegated authority  Day-to-day management to Diocesan Secretary  Supported by Assistant Diocesan Secretary, Head of Finance & Operations , HR & Communications managers

Organisation Chart Sept 2016 including proposed changes

What at does es th the e Fina nance nce Team am do al all l day ay? ?  Collecting Parish Share – 99% aim for 2016  Meeting the break-even operating position  Managing and growing the asset base  Keeping the cash flowing in and out, evenly  Maintaining the property portfolio (£55m)  Managing the investments (£40m)  Paying 200 stipendiary clergy / 50 + employees  Supporting PCC Treasurers

Di Dioc ocesa esan n Fi Fina nanc nce Dep e Depar artm tmen ent Chris Imogen Sally Juliette Yvonne Lucy

TREASURERS’ WORKSHOP Roles & Responsibilities 10

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)  Paying suppliers, wages, expenses etc.  Parish Finance Return, Parish Trusts, parochial fees  Grant and Loan applications, Tax Reclaims  Banking and treasury  Regular reporting to the PCC 11

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 at least 6 years (longer for items such as warranties, details of legacies etc.) 12

Books and Records Typical books and records will include:  An analysed cash book (DBF can provide an Excel version)  Cheque stubs, copies of online payment printouts  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 13

Preparing accounts Context:  All 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 means SORP 2015  All parishes preparing accruals accounts MUST follow SORP 2015. 14

Preparing accounts Which accounts? Annual Accounting Inspection or SORP 2015 Income Method Audit Required Receipts & For R&P – Annual < £250k Payment Inspection report (or accruals) £250k to Accruals Inspection (**) Yes £1m > £1m (*) Accruals Audit Yes (Inc or Exp) (*) or assets >£250k and gross assets >£3.26m (**) by a qualified accountant (ACA, ACCA, ACMA, etc.) 15

PCC CC Accou Accounts a nts and nd Ret Returns rns Checklist hecklist 2015 2015 This checklist is designed to enable the PCC Treasurer to ensure all year end responsibilities have been completed. Accounts have been prepared on: Receipts & Payments basis OR OR Accruals basis (SORP 2015 applies) (If income is greater than £250k, accounts must be prepared on an accruals basis) The accounts have been approved at the APCM & signed by the Chair of the PCC. All the following should form part of your accounts pack. Tick to confirm this. ฀ PCC annual report approved at the APCM- guidance of what should be included is shown overleaf .Note this should include a statement of PCC Reserves Policy . ฀ Signed independent examiners report in the prescribed format (Model report can be downloaded from http://www.bathandwells.org.uk/supporting-parishes/finances/for-treasurers/accounting-returns/ ) ฀ Statement of Assets & Liabilities / Balance Sheet as appropriate. The Return of Parish Finance totals agree with the accounts. Is PCC income (total including all restricted funds and excluding transfers between funds) above £100k for the year ? (Yes/No) If YES YES , the following further confirmation is required : is registered with the Charity Commission The registration number is PCC accounts and annual return have been filed at the Charity Commission /will be filed before the deadline (31 October 2015) Or * Or PCC has applied to the Charity Commission for dispensation not to register this year * Pleas Please return e return th this is checklist hecklist wit ith y h you our A r Accoun ounts an ts and F d Finance retur inance returns ns to to Lucy Lucy D Deakin eakin, DBF, T , DBF, The Old he Old Deane eanery ry, St St Andrew ndrews St Stre reet, W et, Wells ells, B , BA5 2 2UG or by or by em email t ail to o n.org lucy.deakin lucy .deakin@bat athw hwells ells.anglica .anglican.org If you have any queries regarding the completion of your accounts or returns there is guidance on the Diocesan website www.bathandwells.org.uk in “For Treasurers” section *Guidance on Charity Commission registration or dispensation may be found at Parish 16 Resources, www.parishresources.org.uk/pccs/registration/

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 17

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 (must be held by 30 April)  Send accounts to The Old Deanery within 28 days of APCM 18

Preparing accounts Tips:  Use few, meaningful headings (if Receipts & Payments)  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 19

Parish Share, Parish Finance Returns, Parochial Fees These topics will be covered in later sessions 20

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. (i.e. <£1k income or <£10k capital. New legislation has simplified the process – contact Juliette Hill 21

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:  Diocesan Loan Fund Assistance through the Finance Office 22