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Contents

1. New Accounting System

Hopefully this will be the last time I have to write on this issue. I am writing my newsletter early because we will be printing statements and invoices tonight (2 June) and posting them on Thursday.

Many issues have been cleared. It does mean that by and large things are operating as they should and processing is up to date. Not all issues are resolved but most of those affect only FSD. Issues that we continue to address which affect parishes are the format and content of monthly statements (particularly presenting all accounts on one piece of paper volume permitting), sPanz invoicing and the processing of dishonoured direct debits.

Thank you for bearing with us as we have dealt with the teething problems in the new system.

2. Confirmation of Balances

This is also likely to be the last time I report on this matter. We have now virtually cleared all outstanding queries. There are still a small number of queries relating to balances in the Amalgamated Investment Fund and some further questions from parishes who have been provided with additional information on the transactions in their account. We have been posting adjustments to accounts during May so most parishes should now see an account with a balance that is agreed.

Thank you to those who have taken the time to respond. Thank you for waiting while we processed the large number of queries. Your efforts in helping us sort out this longstanding problem are appreciated.

We have also been having a blitz on the queries that have arisen during the implementation of the new accounting system. We are a long way through clearing those queries. Efficiencies gains from the new system are allowing us to dedicate more resources to this area.

3. Amalgamated Investment Fund

The rate of interest paid on deposits with the Amalgamated Investment Fund has been increased to 6.25% for June. The increase follows the Reserve Bank’s 0.25% increase in the official cash rate and reinforces the policy of the trustees to keep rates offered by the AIF competitive.

4. Ministers’ Mortgages

The interest rate on ministers’ mortgages is 7.25% for June compared with 7.00% in May. Increasing interest rates following the increase in the OCR are responsible for the change.

5. Assembly Assessment

We will commence invoicing Assembly Assessment in July. A set amount of data entry needs to be completed before 1 July. So that we can complete this process on time we will accept changes to the parish financial information used to calculate the Assessment until 16 June. Refer to your letter on the Assessment for further details. A number of parishes have responded on this matter and we have adjusted their income where it includes amounts that are not subject to the Assessment.

6. Basic Stipend 2004/05

The basic stipend for 2004/05 has now been set. The stipend has been increased by slightly over 1.5% to $35,832 per annum. The increase compensates ministers for the change in the consumer price index for the year ended 31 March 2004. A formal notification of the charge including worked examples of actual payroll calculations will be sent to parishes in the next few days. The Treasurer’s Manual on the website will also be updated with the new figures and examples.

7. Resident Withholding Tax Certificates

We have had to issue new resident withholding tax certificates covering the first half of the tax year. The now discarded accounting system incorrectly calculated the tax during this period. As a consequence some ministers have received certificates in error. If you have received a certificate in error please disregard it. New certificates have been sent out with an accompanying memo to those who should receive one.

8. Mission and Ministry Giving

Mission and ministry payments received by 5 July will be treated as 2003/04 income. We must close our accounts at that time so financial reports are available for the General Assembly.

9. Statistics Forms

Statistics forms have been despatched to all parishes. The form has been sent to the session clerk. If your parish has not received its forms then contact Katrina Graham immediately. She will send you a copy. Katrina can be reached on 04 381-8283 or katrinag(at)presbyterian.org.nz. Changes have been made to the classification of financial information on the form to allow for the introduction of Assembly Assessment. Please read the instructions that accompany the forms carefully and completely before completing them.

10. Insurance Renewal

The programme for the renewal of our various insurance policies has commenced. In the next few days parishes will receive their schedule showing details of their insurance cover. Please review the content of these schedules carefully as they should be adjusted to reflect the current situation of the parish. Particular attention should be paid to the section on contents cover, as this is the area where change is most frequent. If your building valuations are more than five years old they should be renewed. If you are located in an area that has been subject to a significant increase in building costs you should also have your valuations reviewed.

We cannot stress how critical it is that you perform this review. We have a parish facing a $35,000 loss because it failed to include property it has owned for four years on its insurance schedule. The insurer has declined to accept the loss when damage occurred to the property.


Geoffrey Bell
Manager Financial Services