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Finance Newsletter

New Accounting System

The statement you receive for the month of July will be the last generated by the current accounting system. Future statements and invoices will be produced from the new accounting system. We have taken the opportunity to make some improvements to these documents but they will not be significantly different in format from the current forms. Account numbers will remain unchanged.

We have consolidated all non-interest bearing accounts of parishes and ministers into one account. Therefore instead of having a National Services Levy Account, a Parish Assessment account and an Accounts Receivable account, a parish will have a single account. The closing June balance for each old account will be individually transferred to the new consolidated account so you can trace your old balances into the new system. A statement showing only the balances transferred will be despatched to all account holders in the next few days. We will continue to hold details of the transactions that comprise the balances being transferred, but this information will not be transferred to the new system. This information is available on request. Further information on statements and invoices will be included with the statement mail out.

Accounts that bear interest such as deposits with the AIF or minister or parish loans from the Church will not be consolidated but continue to be operated in their current form.

We have taken the opportunity to close accounts containing trivial balances (less than a $1) and having no activity for a period. The old system did not allow us to do this and judging by the emails and phone calls I receive on the matter most will be happy to see this change. If you wish a closed account to be reopened you should contact this office and we will make the necessary change.

July accounting transactions will be transferred to your new statement once the opening balances have been loaded. Your August statement will contain your opening balance plus July and August transactions. Statements will operate on an "open item" basis that as they will show all items that have not been settled rather than a carry forward balance.

The production of invoices and statements from the new system does not mark the end of the implementation of the new system. Further innovations are to be introduced during the remainder of the implementation that will span the next two months. This part is the first step.

Amalgamated Investment Fund

The interest rate paid on deposits with the Amalgamated Investment Fund has been lowered to 6.0% from 1 August following the 0.25% cut in the Official Cash Rate by the Reserve Bank.

Ministers Mortgages

The cut in the Official Cash Rate has led to a further decline in mortgage interest rates. Therefore the interest rate on ministers' mortgages has been reduced to 6.6% effective from 1 August.

Audit Confirmations

Thank you to those Treasurers who have returned their confirmations. Your effort is appreciated. For those who have yet to return their confirmation your attention to this matter would be appreciated. If you disagree with a balance please provide as much detail as you can as to why you disagree. This will help us to resolve the problem.

We have received from the auditors a number of confirmations where you disagreed with your balance. We are investigating the issues that have been raised and will be reporting back to you and the auditors on the variances. We may have to contact you to discuss items that are the subject of a dispute rather than an accounting error.

Insurance

Invoices for the insurance renewal have now been prepared and will be included with the mail out. The invoice is included in your July statement. Invoices are due for payment by 30 September. Invoices paid (cheque received in this office) on or before that date will receive a 10% prompt payment discount. If you wish to pay your invoice by instalments then you should arrange an insurance loan by contacting Margaret Fawcett in this office. Insurance loans will be subject to interest at the rate paid on deposits with the AIF. If you arrange an insurance loan prior to 30 September you will receive the prompt payment discount.

Increases in premium rates have occurred with the actual cost varying from parish to parish depending on their earthquake zoning. While premium increases are always regretted the information available to us indicates our premium rates remain well below general market rates that could be obtained by individual parishes.

We have also increased the level of claims excess to $1,000 for parish property and $750 for manses. The increase helps to reduce the extent of the premium increases and recognises that the excess has not been increased since 1996 and that we need to recognise the effects of inflation over that period.

National Service Levy

Payment of the NSL commences again in August. Parishes who pay by direct debit need take no further action. If you are paying by direct credit you will need to ensure that this has been changed to reflect your new charge. If you haven't received the letter notifying your new NSL amount please contact Katrina Graham in this office for a copy.

Geoffrey Bell
Manager Financial Services