Presentation on theme: "WAIAPU PARISH ACCOUNTING Revised October 2013. What do we do? We Offer Accounting and Payroll Services to: 33 Parishes Waiapu Board of Diocesan Trustees."— Presentation transcript:
WAIAPU PARISH ACCOUNTING Revised October 2013
What do we do? We Offer Accounting and Payroll Services to: 33 Parishes Waiapu Board of Diocesan Trustees (the banker and property owner) Diocese of Waiapu (administration centre) Bishopric Endowment Trust (Bishop) 3 Hospital Chaplaincies (Hawkes Bay, Tauranga, Gisborne) Gisborne Bible in Schools Anglican School (St Matthews, Hastings)
Who are we? Angela Poynter: Finance Manager – Chartered Accountant Full Time Tracey OShaughnessy: Parish Accountant Full Time Responsible for Financial Reports & General Ledger Journals Lesley Thomas: Parish Administrator Part Time – 3 days – 8.30am – 5.00pm (available by phone 5 days a week) Responsible for Parish Bank Transactions, Payroll, APs, Direct Debits Robyn Owen: Accounts Payable Clerk Full Time 8.30am till 3.00pm Responsible for all Accounts Payable
How Much do we Process?
Monthly Timeline 11 th – Start processing bank statements and accounts payable for the month 16 th – All payroll changes, timesheets must be received 19 th – Payroll sent to Bank 20 th – 20 th creditors are paid 30 th – Last creditors are paid 2 nd – Last bank entries processed and bank reconciled (if all documentation has been received) 4 th – Imprest statements to be received 9 th – All Imprest statements to be processed 10 th – Monthly Reports finalised and issued to vestry
By using the correct paperwork, completing it correctly, and sending it to us on a timely basis o within 24 hours of deposit o direct debits sent to us as soon as you receive them (these can be ratified by vestry later) Ensuring you remember our monthly timeline Blank forms can be downloaded at information/parish-accounting/forms How can you help us
Deposits Did you know that all 33 Parishes in the accounting scheme share the same bank account, meaning the source of all deposits must be identified otherwise some other Parish might get credited your income !!! Parish Admin
Deposits All deposits made at the bank must be made using the special deposit book containing your Parish name and number When you start your last deposit book please contact the Parish Administrator and she will organise for new deposits books to be sent to you. Do not go to the bank direct. Parish Admin
Deposits contd Followed up with a coded banking summary (preferably ed – faxes are unreliable and mail is too slow) To be received within 24 hours of the deposit Only need to make 1 deposit per day 1 deposit per summary Enter actual date of deposit Name of Parish Number of parish in top right hand corner Enter Code for each line (refer to code list – if in doubt – call us) If deposit is for Diocese Bank account (ie.Marsden Cross/ Top Parish) use seperate Deposit Summary and cross out Parish Accounting Scheme at top of form and information to Robyn
Deposit analysis form Parish Administrator
Deposits contd If you transfer any money into our account by internet banking please indentify your Parish in the reference field and the code (and dont forget to send us a transfer form) If you are expecting a third party to deposit into our account please let us know (eg cattle sales, cottage rentals). Send us details: - Who the funds are from - What Parish they relate to - What Code to enter them to - Any Paperwork you have received from the supplier Parish Admin
Deposits - codes In the Parish Chart of Accounts Income should normally be coded to: Offerings & Donations of various kinds All other income including Rent, Interest & Grants Op Shop Income 9300 Ezee Meal Sales Capital Projects and items outside budget (ie Grants) Income should not be coded against any expense codes Parish Admin
Payables – Accounts for payment All Invoices for payment should be passed as approved at vestry They are then sent to Accounts Payable with a coded covering sheet authorising the listed accounts for payment. Any reimbursements should clearly state who is to be paid. (If new supplier please make sure you have their Name, Postal address, address and bank account for payment) - Dont forget to get these authorised by an approved person. Any Accounts being paid by Direct Debit should be clearly separated from those requiring a cheque to be raised. Do not hold these invoices but send these in before their due date for payment. (Remember - You are responsible for coding – please refer to your budget) Payables
Payables Schedule of accounts payable
Urgent Payments Urgent Payments can be forwarded to us by Wednesday for payment each Thursday. Please ensure all documentation is included and contains the correct authorisation. Payables
Payables contd GST will only be claimed (reducing the cost to the Parish) where a valid invoice supplied (incl reimbursements) Payments will not be made on statements, only on invoices. Where possible supply details of the creditors address and bank account details (so payment and remittances can be electronic –saving money).
Payables – using investment funds Occasionally Parishes require payments to be made from investments funds rather than the cheque account. Code the invoice and submit the invoice for payment as normal (if its a repair code it to repairs, do not code it to the investment code). Send through a separate request to action a funds transfer from investment account to the cheque account to cover the payment. (the form is on our website) We suggest you send us a copy of your vestry minutes approving this transfer.
Payables - Codes All payables should be coded to an expense code. These are typically: Personnel Expenses Parish Operating Costs Assessments & Levies Property Costs Op Shop Expenses Ezee Meal Expenses Capital Projects and items outside of budget (they may be moved at year end)
Petty Cash – Accounts Payable Most Parishes have a petty cash float When the float needs topping up send us the petty cash reimbursement form setting out what has been spent (coded and authorised) and copies of the receipts We will send you an open cheque to cash to reimburse the float Payables
Imprest Account Why do we have them: o Allow parishioners to pay offerings by automatic payments o To manage debtors invoices sent – i.e. hall hire, wedding/funeral charges o To isolate fund-raising etc. for major long term capital works o To pay small local payments (ie. catering /supermarket purchases) What you cant do with an imprest account: o Have an eftpos/debit card on this account o Have a credit card attached
Imprest Account Authority on payments: All payments must be authorised by 2 appointed members of your Vestry. Your Administrator should not have signing authority on this account. How many imprest accounts do you really need? - One? o You are missing out on interest (Why not place the funds in a call account with WBDT?) o Your Parish Accounting Scheme Bank account may be in overdraft costing you interest.
Imprest Account - Transfers No need to maintain a fixed dollar balance in your Imprest Account anymore. You manage the balance If you have surplus money write out a cheque and deposit it into the Parish Accounting Bank and send us an Imprest Funds Transfer Form. This gets coded to If you need the account funded send us a Imprest Funds Transfer Form stating the account number to be funded and the amount to fund. This gets coded to 1124.
Imprest Account Parish Admin
Imprest Account - Process By the 4 th of the month you should send us your imprest bank statements for the previous month. We suggest you use the imprest account analysis form - contact us if you are going to be late Attach copies of all invoices paid through the account (otherwise we wont claim GST). If your Parish financial statements have a balance in 1124 at month end your Imprest Account and Parish Bank Account are not processed to same date.
Suspense Account If your Parish has a balance in account 1125 at the end of the month this is because we have identified a transaction belonging to your Parish but we do not know what it relates to. Please advise us before the next month end so this account can be cleared. (normally un-identified Deposits and Direct Debits) Contact us if there is a balance in this code brought forward from a previous month which has not cleared.
Cash Management - Parish It is important than you manage the cash balance of your Parish Bank Account. This is your Vestrys responsibility! Any overdrafts will be charged interest on a daily basis and the interest will be shared out between the Parishes in funds. It is not worth holding large investment accounts or imprest balances if your Parish bank account is in overdraft.
How to read financials Statement of Financial Operations for Period ending 31 August 2011 NoteMTD ActualYTD ActualYTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual Parish Income Offerings/Donations1 6,361 33,124 37,280 (4,156) 89,476 56,352 29, Other Receipts2 15, ,507 32, ,557 79,079 (81,428) 26, Mission Giving (435) 1,150 1, Total Parish Income 21, ,676 70, , ,705 (23,971) 56,334 Parish Expenditure Personnel Costs4 9,782 44,591 45,655 1, ,570 64,979 35, Parish Operating Costs5 3,076 14,897 8,955 (5,942) 21,493 6,596 11, Assessments/Levies6 3,322 15,355 11,835 (3,520) 28,400 13,045 12, Property Costs7 4,320 15,220 11,390 (3,830) 27,350 12,130 17,618 Total Parish Expenditure 20,500 90,063 77,835 (12,228) 186,813 96,750 76,570 Parish Operating Surplus/(Deficit) 1, ,613 (7,125) 110,738 (17,108) 120,721 (20,235) Other Activities Capital Projects11 (13,971) (113,521) (2,085) (111,436) (5,000) 108,521 (31,967) Total Other Activities (13,971) (113,520) (2,085) (111,435) (5,000) 108,520 (31,967) TOTAL SURPLUS/(DEFICIT) (12,902) (9,906) (9,210) (696) (22,108) 229,241 (52,202) Parish Accountant
How to read financials Parish Accountant Gisborne - Holy Trinity Statement of Financial Position as at 31 August 2011 This YearLast Year Equity 9905Retained Earnings Brought Forward 3,675,740 3,618,156 Net Surplus/(Deficit) this Year (9,906) (52,202) Total Retained Earnings 3,665,834 3,565,954 Reserves 9980Revaluation Perm Fund Units 98,371 80, Revaluation Land & Buildings - - Total Reserves 98,371 80,485 Total Equity 3,764,205 3,646,439 Assets Current Assets 1000ANZ Cheque Account - Parish Accounting 32,147 (22,187) BNZ Imprest A/C - Gisborne 2, Petty Cash Balance Interest Accrual 15,190 15, Suspense Account 138 1, Goods & Services Tax 34,960 3,353 Total Current Assets 84,956 (2,454) INVESTMENTS WBDT Income Fund , , WBDT Permanent Fund , , Other Total Investments 842, ,693 Fixed Assets 1180,1186,1192 Church Land & Buildings 2,350, ,1188,1194 Furniture & Equipment 16,818 15, ,1190,1196 Vicarage Land & Buildings 472, ,808 Total Fixed Assets 2,839,261 2,837,662 Total Assets 3,766,469 3,709,901 Liabilities Current Liabilities 1145PAYE Creditors (737) Grants In Advance - 60, Funds on Behalf - Missions Funds on Behalf - Centre Group Funds on Behalf - Wholeness Donations 46 (0) 1055Funds on Behalf - Interfaith Group Vicars Discretionary Fund Missions Group Holy Trinity MBTI Workshop Vicars Discretionary Fund Total Current Liabilities 2,264 63,462 Total Liabilities 2,264 63,462 Net Assets 3,764,204 3,646,439
How to read financials Statement of Financial Operations for Period ending 31 August 2011 Note 1 - Offerings/DonationsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 2000Offerings - Envelopes 5,136 24,778 28,875 (4,097) 69,302 44,524 22, Offerings - Envelopes Te Hapara 571 1, (1,759) Offerings - Cash 568 2,568 4,450 (1,882) 10,674 8,106 4, Offerings - Cash - Te Hapara (267) Annual Giving - - 1,040 (1,040) 2, Offerings Donations - 3,630 2, ,000 3,370 2, Offerings - Special Events (122) - 6,361 33,124 37,280 (4,156) 89,476 56,352 29,214 Note 2 - Other ReceiptsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 2500Fair/Gala ,085 (1,996) 5,000 4, Fundraising 8, (8,901) Parish Function/Special Event - 1, ,093 1,000 (508) Catering Income (250) Weddings/Funerals/Baptisms/Blessings ,500 (2,022) 6,000 5, Interest/Dividends 3,038 15,190 19,635 (4,445) 47,119 31,929 15, Rent - Church 522 3,900 (3,378) 9,360 8,838 3, Rent - Church Te Hapara (170) Rent - Commercial/Office 770 2, (2,311) Rent - Cottage - 2, (2,000) 2, Rent - Childcare/School 711 2, (2,133) Rent - Hall 139 2,628 4,165 (1,537) 10,000 7,372 4, Rent - Hall Te Hapara 814 2, (2,064) Magazine/Publication Income (4) Other Receipts (210) Community Projects (150) Special Project Endowments/Bequests Received - 121, (121,617) Adult Activities (30) Grants - Foster Trust (500) - 15, ,507 32, ,557 79,079 (81,428) 26,620 Parish Accountant
How to read financials Note 3 - Mission GivingMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 4000Anglican Missions (435) 1,150 1, (435) 1,150 1, Note 4 - Personnel CostsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 5000Clergy Stipends 4,179 20,828 20,635 (193) 49,520 28,692 20, Clergy Service Fees (99) Travel Reimbursement (0) 2,000 1, Travel - Car Depreciation Clergy - Hospitality (4) 1, Clergy - Phone & Broadband - (738) Clergy - Books , Clergy Supervision (365) 1, Clergy Conference (800) Wages - Parish Secretary/Administrator 1,963 7,989 7,085 (904) 17,000 9,011 8, Wages - Cleaner/Caretaker 1,105 5,475 5,000 (475) 12,000 6,525 4, Wages - Family/Youth Worker - - 4,165 10, Wages - Supervisor Wages - Other 1,335 7,893 6,250 (1,643) 15,000 7, ACC Premiums ,782 44,591 45,655 1, ,570 64,979 35,795 Parish Accountant
How to read financials Statement of Financial Operations for Period ending 31 August 2011 Note 5 - Parish Operating CostsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 6000Advertising - (41) ,000 1,041 1, Church Stores/Supplies Cleaning (540) 400 (305) Audit Fees Fair Expenses 49 - (49) Kitchen & Cleaning (127) 143 (49) Bank Charges Catering Expenses Choir & Music (435) 600 (85) Flowers Worship Resources (39) Communion Supplies (342) 300 (167) Printing Stationery ,000 1, Computer Expenses Photocopying Charges & Rental 417 1, (1,100) 1,500 (225) Subscriptions/Copyright (434) Library (918) Postage Telephone - Church 297 1,407 1,165 (242) 2,800 1,393 1, Telephone - Clergy/Vicarage - - 1,000 2,400 1, Telephone - Mobile 168 1,013 - (1,013) Telephone - Yellow Pages - 1,253 - (1,253) Community Projects ,000 1, Alpha & Discipleship Courses (35) 91 - (91) Christian Education , School Aged Activities (3) Kids Church Expenditure , Youth Activities 150 1, (946) 200 (831) Adult Activities (144) Divorce Care , Evangelism & Outreach (379) Pastoral Care/Hospitality (219) Conferences/Seminars/Training (358) 100 (298) Volunteer Expenses (300) Sundry Expenses , Drop In Centre Expenses (665) Parish Functions (43) 1, (975) 100 (915) Synod Expenses (223) Weddings/Funerals Costs , Special Events (62) ,076 14,897 8,955 (5,942) 21,493 6,596 11,036 Parish Accountant
How to read financials Note 6 - Assessments/LeviesMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 7000Parish Assessment 2,379 10,638 8,750 (1,888) 21,000 10,362 9, Anglican Missions Board 943 4,217 3,000 (1,217) 7,200 2,983 3, Donations (415) 200 (300) - 3,322 15,355 11,835 (3,520) 28,400 13,045 12,121 Note 7 - Property CostsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual 8000R & M - Church Buildings , R & M - Hall , , R & M - Organ/Piano R & M - Vicarage R & M - Cottage , R & M - Equipment (47) R & M - Grounds 275 1,272 - (1,272) - 1, Insurance - Church 1,008 4,353 5, ,000 7,647 3, Security/Fire Alarm (187) Power/Gas - Church 484 1, (432) 2, Power/Gas - St Nicolas (400) Power/Gas - Te Hapara (23) (616) Power/Gas - Hall - 1,432 1, ,500 3,068 2, Power/Gas - Cottage (444) Rates - Church 790 1, (753) 600 (403) Rates - Vicarage 709 1,414 1,040 (374) 2,500 1,086 1, Rates - Cottage - 1, (262) 2,200 1, Rates - Hall (554) Rates - Hall Te Hapara (345) Rent ,320 15,220 11,390 (3,830) 27,350 12,130 17,618 Parish Accountant
How to read financials Statement of Financial Operations for Period ending 31 August 2011 Note 8 - Op ShopMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual Operating Costs Note 11 - Capital ProjectsMTD ActualYTD Actual YTD Budget Var to YTD BudgetFY Budget Budget Remaining Last Year YTD Actual Income 9800Church Conservation Donations - 2, (2,000) Church Conservation Grant - Lottery - 24, (24,442) Church Conservation Grant -Other 10, (10,000) Church Conservation Expenses (23,971) (144,206) ,206 (31,967) 9865Furniture & Equipment Expenses - (5,757) (2,085) (3,672) (5,000) Surplus/(Deficit) (13,971) (113,521) (2,085) (111,436) (5,000) 108,521 (31,967) Parish Accountant
How to read financials Statement of Financial Position as at 31 August 2011 Note 12 - WBDT Income FundsThis YearLast Year WBDT C R Willis Fund WBDT CPW Investment , , WBDT Conservation Fund , WBDT Est D J Pilmer , WBDT Est H J Phillips WBDT Est M M L Cooper , WBDT Est V Ferdinando ,394 29, WBDT General Fund ,377 3, WBDT Land Trust ,706 7, WBDT Maintenance Fund ,634 4, WBDT Welfare Fund ,077 10, WBDT Vicarage Fund Total 171, ,869 Note 13 - WBDT Permanent FundsThis YearLast Year WBDT Court Trust (Units) ,250 54, WBDT T Price Fund (Units) , , WBDT W O'Halloran Units , ,613 Total 670, ,824 Parish Accountant
Journals – Parish Accountant Corrections to coding/data entry errors should be completed on correct form and should include reason. Journals will be dated in the system on the 1 st of the month following the original transaction.
Budgets Why do we need them: Help us ensure you have considered your income and expenditure for the year and have a plan in place. Variances to budgets highlights potential issues for your Vestry to consider. Items outside budget should be approved by vestry before processing.
Payroll Your Parish Vestry has responsibilities under the Employment Relations and Holidays Acts as well as other legislation Timesheets, Leave Applications, Payroll Changes, Termination documents must be received by the 16 th. They must be authorised by an approved person. Blank forms are available on information/parish-accounting/forms information/parish-accounting/forms
Payroll – contd New Employees must provide the following documents before they will be paid: Signed Employment Agreement Full Job Description Completed New Employee form Bank Deposit Slip IR330 (Tax Code Declaration) Kiwisaver Declarations – KS2 and KS10 if opting out Personal Address for payslips Minimum Adult Wage $13.75 p/hr sp Parish Administrator
Payroll – contd Common issues with paperwork - Sending start and finish times rather than hours worked eg 8.30am to 4.00pm - Including hours paid last month on current timesheet - Sending details of hours worked by volunteers Payments to Clergy/Organists and others for services must go through payroll Parish Administrator
Payment for Service Honoraria Honoraria are payments made for services provided where no fixed payment would normally be made. They are treated as wage payments for tax purposes. Examples – running a Op Shop, playing the organ at services, taking services. Taxing honoraria If you are paying honoraria to an employee, we need to put these through payroll so please send us all the details /
Payment for Expenses Reimbursing expenses Volunteers often incur expenditure associated with their voluntary activities. This could be from the activity itself or their travel to or from the activity. Reimbursement payments are treated as tax-exempt income for the individual if they are based on: o actual expenditure, or o a reasonable estimate of the likely cost i.e. mileage claims Payables/Parish Admin
Waiapu Board Investments If you have surplus funds or ear marked gifts that are not needed in the short term you can earn interest on the funds with the Waiapu Board. The Board operates 2 funds, a income fund (suits short to medium term investments), and a permanent fund (suits deposits of greater than 1 year in length). Parish Accountant
Income Fund Last year paid 4.75% pa Invest a $1 and get back $1 + interest Interest Paid annually on 31 st March Value of the fund $17m Invested in Bank Call Accounts, Corporate Bonds, and Mortgages
Permanent Fund Last year paid 11.0% per unit (or 4.89% per $1 invested) Invest a $2.25 and get 1 unit Sell the unit and get the exit price at the time Interest normally Paid annually on 31 st March Value of the fund $13m Invested in Corporate Bonds, Equities, and Commercial Property
Responsibility Wardens are responsible for all activities of the Parish including: Financial Management and Reporting Budgeting Financial Audits Vestry is responsible for: Employment and Legislation (being good employers) Providing consistent, mission focused and future orientated planning of finances, property maintenance, leadership succession. By Following Process Transparency of Transactions
Best Practice Moving towards best practice means consolidating processes between Diocese/parishes Separation of duties Ensure that payment documents are processed correctly by having different people involved in the payment process. This principle is called separation of duties. Best practice is to have different people: o Approve purchases – Vestry, minutes o Receive ordered materials o Approve invoices for payment – Warden/Treasurer o Review and reconcile financial records – Wardens/Vestry Parishes
Best Practice contd Potential consequences if duties are not separated: o Erroneous or fraudulent invoices approved for payment o Unauthorized payments made to non-existent vendors So transparency in all transactions is essential. If we ask a question it will be from an audit point of view. Compliance + Accountability + Transparency + Consolidation = Efficiency We are here to assist.. So please call us!
WHAT NOW? Website – forms upgrade Website – copy of this power point loaded Payroll review of employment agreements standard job descriptions coming