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Contents
1. New Accounting System
Only one issue of any significance remains outstanding with the new accounting system. The transfer of interest income, calculated on AIF balances, to the module that makes the payment via the banking system still isn’t working. The vendor has provided several amendments to the programme since my last newsletter but they have failed to solve the problem. We continue to make manual payments of interest on request. The vendor has been left in no doubt as to the effect this problem is having. Resolution of this problem is a priority and we are advised it should be fixed shortly. Hopefully you will have received your March interest payment by the time you read this paragraph.
The work on allocating unallocated cash transactions is proceeding well. We are now more than half way through the process and believe we are on target to complete the work by the end of May.
Routine transaction processing is now happening much as it should. Delays in sending April statements were caused by the timing of the Easter break and a small problem with the revised format for AIF statements.
2. Confirmation of Balances
The rate at which we are clearing the queries arising from the confirmation of balances at 31 October 2003 has increased substantially. The Council of Assembly has provided resources to employ two short-term contractors to assist with clearing the backlog. The two contractors, Ian Campbell and Melissa Cole have been in place for nearly a fortnight. As they become more familiar with our systems and the manner in which the Church operates the speed at which they can resolve a query increases. You may receive correspondence from Melissa or Ian in relation to your query. Please extend them every assistance so we can use them to maximum advantage.
So far, we have responded to 225 of the 300 queries we have received. Not all our responses represent cleared queries as they include the supply of further information or require a further response from the person/parish making the enquiry.
3. Amalgamated Investment Fund
The rate of interest paid on deposits with the Amalgamated Investment Fund continues at 6.00% for the month of May.
4. Ministers' Mortgages
The interest rate on ministers’ mortgages is 7.00% for May.
5. Assembly Assessment
Letters have now been sent to each parish treasurer showing the calculation of the Assembly Assessment for their parish. Contact this office to obtain a copy, if you ahven’t received one.
We have included with the letter a separate explanation of the Assessment and its calculation together with some answers to questions you are likely to ask. This explanation (minus the calculation for your parish) has been copied to Session Clerks, Presbytery Clerks and UDC Secretaries for their information. If you have any concerns about the calculation of your assessment, contact commsmanager(at)presbyterian.org.nz, or Tina Callcut, Acting Communications Manager on 04 381 8284.
The figure does not include any GST. GST is payable on the component of the Assessment that replaces the national services levy and the mission and ministry target.
The Assessment does not apply to uniting parishes so no information has been sent to those parishes. Uniting parishes under Presbyterian oversight will continue to pay a contribution to the Beneficiary Fund. The amount of this payment will be advised once the rate for the basic stipend has been set for the 2004/05 year.
6. AIF Deposit Enquiries
When making enquiries about or giving instructions in relation to a deposit in the AIF please quote the full account number. The number is prominently displayed on the account statement. Our job is made much simpler if we can enquire in our system by account number. We can search by name but this is often more difficult because the names we are provided often don’t match our records. For example many parishes have the same name (St Andrew’s is very popular) we have to hold both a name and a location in our records. If the name we are given doesn’t include the location then a lot of extra searching is required to locate the correct account. Using the account number is more efficient, both at your end and ours.
7. Charities Bill
Work on the draft submission on the Charities Bill is now nearly complete. The Church is now considering how best use the submission to present its case to the Parliamentary Select Committee that will consider the Bill.
8. Personal Deposits in the AIF
During the last month two instances of parishes depositing money in the AIF on behalf of parishioners have come to my attention. In both cases when interest earned was passed to the parishioner no resident withholding tax was deducted. These actions have exposed the parishes to significant financial penalties. They could also unwittingly cause the IRD to review the tax-free status of the AIF. In both cases the motive was honourable and of benefit to the parish. The parish did not realise it had obligations under the Income Tax Act.
The Church Property Trustees are very clear in their instruction that personal deposits are not to go into the AIF even under the name of a parish. If your parish is party to such an arrangement then it should be unwound immediately.
9. Statistics Forms
Statistics forms will be despatched to parishes around 20 May. Collection of Sunday attendance details commences in June. The major change in the forms will be in the financial information we collect. The change is necessary because of the changed definition of income used for the calculation of Assembly Assessment.