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Finance Newsletter

New Accounting System

Implementation of the new accounting system has commenced. As I write this newsletter we are processing the last transactions through the old system and will be closing it tonight. The old system will remain open for access for a while so we will still be able to provide information on old transactions. However transaction histories will not be transferred to the new system.

The transfer of October closing balances for the various parish and minister accounts to the new system will commence later in the week. For loan and deposit accounts (deposits with the AIF, ministers loans and deposits, Dingwall loans, Burnett loans, Centenary Fund loans, ministers' mortgages and insurance loans) the balance at 30 September was transferred with October transactions being processed through both the old and new systems. October transactions have been processed this way to enable interest for the December quarter to be correctly calculated by the new system.

When we make the transfer to the new system any balance of less than $5 will be ignored. The licence fee for the software is calculated on the number of accounts we have in operation so it is in our interest to minimise the number of accounts open in the system. If you feel particularly aggrieved at the loss of a small credit balance in an account you can contact this office to have it reinstated. However, a generous gesture of allowing it to be offset against the small debit balances not transferred, would be appreciated. This will help produce an overall reduction in operating costs. Accounts that have been inactive will not be opened in the new system.

When we despatch October statements you will receive two statements, one from the old system showing October transactions in the normal manner and the other showing the opening balances transferred to the new system. Balances in your NSL, AR and PA accounts will be consolidated into one account though you will be able to identify the individual transfers. Any transactions that we have processed through the system will also show on your statement. Such transactions are likely to be limited to the transfer of funds from deposit accounts and payments receipted through the office.

As part of the transfer process we will be asking parishes to confirm their balances are correct. We appreciate that there are a number of unresolved accounting differences going back a number of years. We wish to clear these differences and have employed some additional temporary resources to assist. This is our 'spring wedding' offer - speak up now or forever hold your peace. We will in the future shut down the old system with its detailed transactions records so differences will need to be resolved now. We will have more details with the accounts statements. As part of this process you may receive a letter from our auditors asking for confirmation of the balance being transferred.

As part of the introduction of the new system you will receive an increase in the number of pieces of paper confirming a transaction has been processed. We know parishes are concerned about whether transactions have been processed because of problems in the past. The new system is capable of producing confirmation of processing and we will be using this facility. In the longer term we will be providing this information electronically.

We look forward to the new system and a new standard or service. We know we have not always provided a satisfactory service standard in the past but we are working hard towards making that a distant memory.

Amalgamated Investment Fund

The interest rate paid on deposits with the Amalgamated Investment Fund remains at 6.0%. This rate is 1% above the Reserve Bank's Official Cash Rate.

Ministers Mortgages

The interest rate on minister's mortgages remains at 6.6% for the month of November.

Insurance Discounts

Prompt payment discounts for those parishes paying their insurance premiums on time have been processed in October. It has been pleasing to note that most parish qualified for the discount. You can either leave the discount in the account or it will be refunded on request.

With the new accounting system combining your NSL account, parish assessment account and accounts receivable account there will be regular monthly transactions going through your account to offset the discount.

Payment by Direct Debit

 have had a number of queries from parishes concerned that they are now receiving an invoice for amounts that they are settling by direct debit. They weren't sure if receipt of the invoice meant that we would not activate the direct debit.

We will be sending invoices for all transactions charged to your account. This is to ensure that you have appropriate documents to support accounting entries for audit purposes and for the preparation of GST returns. It will also allow you to see details of the charges going through your bank account before they occur. If you normally pay by direct debit we will continue to settle accounts by direct debit.

When loading transactions into the new system we specify at the time of transaction entry if the transaction is to be settled by direct debit. On the date specified the system will create the necessary direct debit batch for transfer to bank for processing.

It should be noted that the system does not allow us to alter the payment method on an invoice already entered into the system. We therefore cannot use a direct debit to clear an existing invoice with normal settlement terms even if you request us to do so. You will need to settle such invoices by cheque. A number of parishes and ministers are settling overdue amounts by instalment payments by direct debit. We will contact these people and advise them of the new arrangements that are to apply.

Geoffrey Bell
Manager Financial Services