TREASURERS’ NEWSLETTER – FEBRUARY 2014 Dear Colleague, With Parochial Church Council (PCC) and Diocesan Board of Finance (DBF) year end work now very much in progress, it is time once again to bring you up to date on a number of accounting and other financial related matters: Forms and Returns:
2013 – Annual Report & Accounts; Annual Return of Parish Finance 2013 – Statistics for Mission 2014 – Survey Form (for membership and category)
Diocesan Information:
2013 – Parish Share Collections 2014 – Parish Share 2014 – Parochial Fees Stewardship News
Other Matters:
Training – Treasurers’ Cashbook Banking – Nat West ACAT membership etc. Credit Unions
FORMS & RETURNS 2013 – Annual Report & Accounts; Annual Return of Parish Finance 31 December is the year end for all PCCs. The PCC annual report and accounts, once prepared, are either independently examined or audited. They are then considered and, if thought fit, approved by the PCC and signed by its Chair. They are then received at the Annual Parochial Church Meeting (APCM) which has to occur before 30 April 2014 (for 2013). Enclosed with this newsletter is the Archbishops’ Council’s Annual Return of Parish Finance 2013 for your completion, with accompanying notes. The form should only be signed off once the financial statements have been approved by your PCC. The form (on excel) and notes are also available at: http://www.bathandwells.org.uk/admin/finance-forms-and-guidelines/. If you have any questions upon completion, please contact a member of the Finance team. The Annual Report & Accounts and the Annual Return of Parish Finance should then be filed, either by post to Richard Illidge at The Old Deanery, or your Churchwarden(s) can supply by hand to your Archdeacon at the Visitation during May. The Annual Return of Parish Finance can now alternatively be filed directly on-line. A user name and password to access the on-line facility can be supplied by contacting Richard on 01749 685125 or by e-mailing him at
[email protected].
FORMS & RETURNS (continued) 2013 – Statistics for Mission This form was supplied to your Churchwarden last September. It was due to be completed and returned to Richard Illidge by 31 January 2014. As with the Annual Return, the Statistics for Mission form can also be filed on-line. This information supplied is collected by Archbishops’ Council in London. More details on ‘Facts and Stats’ are available from http://www.churchofengland.org/about-us/facts-stats.aspx. October average adult weekly attendance is used by the DBF for comparison purposes with declared parish membership on the survey forms. 2014 – Survey Form (for membership and category) We have just circulated to your Churchwarden, copy Incumbent/Priest-in-Charge, the important 2014 survey form for the calculation of your parish’s 2015 Parish Share. There is also a covering letter from the Bishop and DBF Chairman together with a guidance booklet on Parish Share and how to complete the form. This information can also be downloaded from the diocesan website at: http://www.bathandwells.org.uk/admin/parish-share/. Updated benchmark socio-economic categories can now be viewed at: http://www.bathandwells.org.uk/admin/parish-share/. The survey form needs to be completed and returned to The Survey Return Officer at The Old Deanery by 30 April 2014. DIOCESAN INFORMATION 2013 - Parish Share Collections Parish Share collection rates for 2013 are holding up favourably: 93.7% had been received as at 31 December 2013 versus 94.5% compared with the same time last year. The remainder is expected to be received from parishes in early 2014. The DBF is hoping for a 2013 collection rate of 98.5%, slightly above last year’s 98.3% final collection rate. The forecast collection for 2013 (net of discounts and non-collections) is £9.1m. The Common Fund is the total of all the 495 Parish Shares from across the diocese. A ten minute film can be viewed at: http://www.bathandwells.org.uk/churchesandparishes/our-common-fund/. Grateful thanks to the vast majority of PCCs who have settled their Parish Share during the year with full payment by the end of the year. This has helped to ensure that all clergy stipends, pensions and housing requirements during the year have been met once again. For those few parishes that have not yet been in contact with us as to late payment, or a potential shortfall of payments, please could they ensure prompt payment of any remaining Parish Share. 2014 - Parish Share Parish Share for every parish across the diocese is calculated from The Common Fund approved by Bishop’s Council and Diocesan Synod. 2014 has seen an increase in the total Common Fund of 1.9%. Letters and supporting analyses explaining the background to the increase were sent to all PCC Treasurers in early November 2013, copies of which are available at: http://www.bathandwells.org.uk/admin/parish-share/ under the heading ‘Parish Share 2014 calculations’. Individual parish increases will vary depending upon church membership increases/decreases and socio-economic category classification.
DIOCESAN INFORMATION (continued) 2014 – Parochial Fees Latest parochial fee information and updated Bishop’s Guidelines are available from: http://www.bathandwells.org.uk/admin/parochial-fees/. A short Parochial Fee Questionnaire was included within the 2014 survey form mailing. Please contact Jessica Cook should you have any questions on parochial fees. Stewardship News A separate Stewardship News has been supplied with this mailing. There is also a great deal of information and resources in support of parish mission available at: http://www.bathandwells.org.uk/admin/stewardship/. OTHER MATTERS Training – Treasurers’ Cashbook We were delighted to welcome 70 of you to three separate Treasurers’ Cashbook training sessions during January. Due to their popularity, Chris Gould hopes to hold similar events next January. We very much recommend this free Excel-based software for receipts and payments accounting and the annual completion of the Return of Parish Finance form. Cashbook details are available at: http://www.bathandwells.org.uk/admin/cashbook/. Banking – Nat West For those PCCs banking with Nat West there are a number of important matters to note: (1) Cash Management Scheme (CMS) The CMS is a popular scheme across the diocese with over 500 participating current accounts. Its main advantages are: no bank charges, quarterly notional interest credits and easier change of signatories. The DBF has been fortunate over these last couple of years in obtaining within the CMS scheme net annual interest rates of ~ 1.2% in 2011 and 1.5% in 2012. With general market conditions and reducing interest rates on offer, these have fallen to 0.6% in 2013. The rates have consistently been higher than the current CCLA instant access deposit rate of 0.5%. It does look however, based upon current 12 month deposit interest rates now being offered by Nat West, that the CMS net interest rate may drop below 0.5% in the latter part of 2014. Please do therefore monitor your quarterly CMS ‘notional interest’ rates received going forward compared with your average current account balance over the period. You may decide that the interest rate is dropping to a level where a better return may be possible with another instant access current or deposit provider. Credit Unions noted at the end of this newsletter may be a considered alternative. (2) PCC Change of Signatories With forthcoming APCMs and potential changes in bank signatories, please remember the mandate specific to PCCs available at: http://www.bathandwells.org.uk/assets/downloads/Finance/Nat%20West_change_signatories_at_bank.pdf
Please note that: No ID is required The form must be signed by two current bank signatories even if they are to be removed The full account name, exactly as detailed on the statement, must be entered Once completed, the form should be sent to: Victoria Bellingham, National Westminster Bank, Bristol Commercial Banking Centre, PO Box 2702, 3 Temple Back East, Bristol, BS1 9BW. Any questions, please contact a member of the Relationship Team on 0117 943 5043.
OTHER MATTERS (continued) Banking – Nat West (3) Online Banking In the April 2013 newsletter, we advised that a free electronic banking service which met the requirements for dual authorisation of payments was being developed by Nat West. The launch date was expected to be during Q1, 2014. We have since been advised, because of other pressing Nat West IT development priorities, that this launch date has had to be delayed a few months. PCCs can currently request to use either Bankline or Bankline Lite from Nat West, both with dual payment authority, each having a small monthly cost. Further details are available from: www.natwest.com and then clicking on ‘find out more and register’ on top RHS of screen. (4) Government Procurement Cards (GPCs) In the June 2013 newsletter, we advised that the development of a diocesan GPC scheme was underway. This will assist PCCs with electronic commerce, supplier payments and help ease office administration. Some PCCs may already be operating with NatWest GPC One Cards. We are pleased to report that this scheme for parishes has now been formally set up between Nat West and the DBF. If your PCC is interested in providing such a charge card with agreed limits to a PCC officer or employee, please contact Nick May by e-mailing him at
[email protected] or by ‘phone on 01749 685112. He can then provide you with further details on the application process and T&Cs.
ACAT Membership etc. If you are not already a member of ACAT (Association of Church Accountants and Treasurers) – the national charity for Church Treasurers - please do consider joining. The annual subscription is just £12.50. For more details, please visit their website at: http://www.acat.uk.com/. Membership benefits include a regularly updated Handbook with some 25 chapters covering everything a Treasurer might need to know from Book-keeping to Fundraising; a quarterly Newsletter keeping members informed of all the recent changes in legislation; an annual Treasurer’s Guide detailing current tax rates plus access to their team of expert advisers via its Advice Line. We regard ACAT, the Treasurers’ Handbook and the red book entitled ‘PCC Accountability: The Charities Act 2011 and the PCC’ to be key resource materials for PCC Treasurers. The Treasurers’ Handbook is available from http://www.bathandwells.org.uk/admin/handbook/. The red book can be purchased from any good book retailer or viewed directly from: http://www.churchofengland.org/clergy-office-holders/pcc-information/pcc-accountability.aspx. Credit Unions There are a number of Credit Unions across Somerset. The DBF recently signed up as a corporate member of Somerset Savings and Loans (SSL) and deposited £15,000, the maximum permitted as a corporate member. Please see http://www.bathandwells.org.uk/diocese/news/story/616/ for the story together with the links to finding your nearest Credit Union. PCCs (and individuals) can do the same as the DBF. Savings are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. The annual dividend paid by SSL for their 2011/12 financial year was 2%, a favourable rate of income return on an instant access deposit account. Any depositing PCC will not only receive a reasonable income return but also help to provide a realistic and alternative source for borrowers away from pay day lenders. With kind regards, Nick May, Chris Gould, Sally Westlake, Jessica Cook, Juliette Hill and Richard Illidge DBF Finance Team 3 February 2014
