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Finance Newsletter

Computers

We are now seeing signs of tangible progress on the implementation of our new system. The new computer servers have arrived in the office and loading of the new applications software is due to commence at the end of this week. We are now dealing with the detail of the switch to the new system.

One of the jobs that is to be done is the transfer of minister and parish balances to the new system. We will be retaining existing account numbers in the new system and transferring account balances. We will be spending out a statement showing the balances transferred to the new system and asking that these balances be confirmed. We appreciate that not all balances are correct and we need to correct the problem accounts. Transaction details will not be transferred to the new system but we will continue to operate the old system for a number of months so we can retain access to the information needed to investigate incorrect balances.

The new system has a number of new features such as the ability to send out reminder notices for overdue debt. If an amount remains unpaid in your account because it is disputed please let us know so we don't need to use this feature. The Council of Assembly has asked that we actively seek payment of overdue amounts to help fund the budget deficit so we will be increasing our monitoring and follow-up outstanding debt.

Ministers Mortgages

Mortgage interest rates are expected to fall following the fall in the official cash rate. As this newsletter is being written immediately after the announcement of the rate cut we do not know the extent of any cut in mortgage interest rates. If the BNZ announces a cut in their mortgage rate in the next few days that rate reduction will be reflected in mortgage interest rates with effect from 1 June. The current rate for ministers' mortgages is 7.09%.

Amalgamated Investment Fund

The interest rate paid on deposits with the Amalgamated Investment Fund has been reduced to 6.25% with effect from 1 June. The reduction is a consequence of a fall in the official cash rate to 5.25%. The lower overnight cash rate is reducing the interest earned on investments making the reduction necessary. However the earning rate remains very attractive in comparison with other investments of similar term and security.

Statistics

All parishes should have received their copies of statistics forms. If you haven't yet received a copy please contact Katrina Graham in the Assembly Office. Before completing the forms we ask that you please read the enclosed instructions carefully. Collection of data on attendance at worship in June should have now started.

National Services Levy

Now that Council of Assembly has announced the details of the budget for 2003/04 and the rate for the National Services Levy we will be advising parishes in the next few days of their levy for next year. The levy is based on the financial information contained in the June 2002 statistics. The levy rate remains unchanged at 5% of leviable income.

The first instalment of the levy will be payable in August. Parishes paying their levy by direct credit will need to contact their bank and adjust their payment authority. Parishes paying by direct debit need take no further action. If you wish to avoid the annual cost of adjusting your automatic payment then please contact Sulupo Nanai in this office and he will supply the necessary forms to have a direct debit loaded for your account.

Parish Assessment

The Administration and Finance Policy Group will be considering the annual adjustment to the Basic Stipend at their meeting to be held on Saturday 7 June. Once the level of the Basic Stipend has been calculated we can determine the amount of the parish contribution to the Beneficiary Fund. As in the past the amount of the parish contribution will be determined by the income of the parish. The assessment is payable by parishes without ministers and co-operating ventures with Presbyterian oversight.

Parishes will be notified of their contribution a little later in the month once we have had the opportunity to perform the necessary calculations. The new assessment will apply from 1 July. Parishes paying by direct credit will need to contact their bank to have the amount of their payment adjusted.

Basic Stipend

Once the Administration and Finance Policy Group have agreed the basic stipend we will update the Treasurer's Manual on the web site with the new rate. Please visit the web site to obtain the information for as much as we would like to talk to you we are preoccupied with implementing a new computer system.

Insurance Renewal

Just a reminder to complete and return your renewal forms as soon as possible. Market conditions remain difficult particularly for earthquake cover. Early and accurate information gives us the best opportunity to negotiate the best deal. With premiums expected to rise by 30% we need to give ourselves the best possible opportunity to keep any rise to the minimum. We continue to seek alternative ways to manage our insurance risk and I will report any progress in this regard next month.

Resident Withholding Tax

Ministers with a credit balance in their minister's loan account receive interest on that balance. By law we deduct Resident Withholding Tax from interest earned and pay the tax across to the Inland Revenue Department. Ministers who received interest should have received a deduction certificate for the year ending 31 March 2003 from this office showing the amount of interest received and tax deducted. This certificate should be attached to your tax return.

If you have received interest income but have yet to receive your deduction certificate please contact Keith Carman in the Assembly Office to obtain a copy.

Geoffrey Bell
Manager Financial Services