stewardship’s quarterly dial-in€¦ · • submit regular claims –at least one per year. •...

www.stewardship.org.uk [email protected] 020 8502 5600

welcome to:

Stewardship’s Quarterly Dial-in

The call will start at 1pm…


welcome to:


we will be starting soon…


welcome to:


we will be starting in 5 mins…


welcome to:


we will be starting in 2 mins…


welcome!



Stewardship’s mission…

To find out more about how Stewardship could support you and your church or charity, call:

John Keskeys on 07885 705594

He would be delighted to speak to you.


today’s agenda1. mosquito effects

− The Charity Commission on Accounts Failures− Charity Fraud Awareness Week− GDPR and religious groups− The 2018 budget statement and Gift Aid

2. meatier topic− The Role of the Treasurer

3. Q&A


questions?

To ask a question, click on the ‘Chat’ icon and write your question to ‘All Panellists‘ to ensure we see it and can answer it.

Please do type your questions as we go through the call.


the mosquito effects

Four small things that you need to know about before they bite you…

www.stewardship.org.ukwww.stewardship.org.uk

1. The CharityCommission on Accounts failures


Charity Commission –amounts modelling reviews• Two recent reviews

• Do small charities annual reports and accounts meet the reader’s needs;• Telling your story well: public benefit reporting by charities

• Asked three questions1. Did small charities produce complete reports? (accounts and trustees’

reports)2. Were the financial accounts consistent?

• Findings - 36% of small charities failed at this hurdle3. Did Does the trustees’ annual report explain what activities the charity had carried out during the year to achieve its purpose?


Charity Commission –amounts modelling reviews• Public benefit reporting

• Is the charity is doing what it was set up to do?• Is the charity is making a difference to its beneficiaries?• 50% of charities failed to demonstrate an understanding of public benefit.

• How well are we telling our story?• Our chance to tell part of God’s story through “our story”;• Explain the impact and difference that we make

• The Trustees’ report• A long, dry and dull list of “stuff” that we do?• A “cut and paste” job from last year?

• Some suggestions• Don’t write the report for church “insiders”;• Don’t write to justify our existence;• Write in a way to excite others – vision, achievement, difference made;

2. Charity Fraud Awareness Week


Charity Commission –Insider fraud• Charity fraud awareness week

• Charity Commission research report on insider fraud in charities

• Factors contributing to insider fraud• Excessive trust or responsibility placed on one individual;• Lack of oversight;• Absence or poor application of financial controls.

• Churches with good financial controls are generally• More effective;• Able to make informed, Kingdom enhancing decisions.

• Look again at your basic controls• Fit for purpose?• Properly applied?• Have we become complacent?


Charity Commission –Insider fraud• The Commission’s fraud prevention tips

1. Implement financial controls that everyone signs up to;2. Review controls and fraud risk regularly;3. Guard against excessive trust and complacency;4. Don’t be afraid to challenge;5. Encourage staff and volunteers to raise concerns.

• Our messages remain1. Build a team;2. Encourage a culture of challenge;3. Keep your eye on the ball;4. Explain why.

• Don’t be blind to the fact that it could happen in your church.

• Look at the resources provided by the Fraud Advisory Panel.

3. GDPR and door-to-door preaching


GDPR – Door-to-door preaching• Ruling by the Court of Justice of the EU – reminds us GDPR is

here to stay

• Door-to-door evangelism comes under the requirements of GDPR• Preaching organisation is considered a “data controller”• Records are data regardless of how they are held

• Likely to extend to pastoral visits, counselling and mentoring schemes

• Encourage procedures and guidelines for pastoral visits which seek to;• Make the most of each session;• Protect and safeguard all parties involved;• Meet GDPR requirements

4. The Autumn Budget statement and Gift Aid


The Autumn Budget statement• GASDS – from 6th April 2019 the donation limit increases from

£20 to £30 per gift

• Minimum and living wage – From April 2019 - NLW increases to £8.21 per hour• All other minimum and living wage rates increase as well

• Avoiding food waste • Government to provide £15m to charities and others to distribute

surplus food.• No mechanism for this has yet been announced

• Trading within the charity• Upper limit for non-primary purpose trading will increase.

• Turnover < £32,000 - £8,000• Turnover £32,000 to £320,000 remains at 25%• Turnover > £320,000 - £80,000

• VAT registration threshold remains unchanged at £85,000


Gift Aid – Donations for refreshments• Announcement Treasury Minister Robert Jenrick

• Gift Aid can be claimed on donations for food and drink• Specifically in the context of Macmillan’s “coffee morning” • Extend to donations for refreshments at church services and other

activities

• Can’t be an exchange for goods.

• Can’t say “coffee or cake is £2 and we can Gift Aid your payment”• Not a donation but an exchange

• People must be free to give what they want OR nothing at all.

the meatier topic: The role of the Treasurer


Treasurer – it’s a big job!• Let’s face it - it’s a big job

• Important to the church• Integral part of church leadership

• Helps shape an environment that understands money• A right attitude;• Layers of accountability• A framework of financial controls

• Revisiting some topics from the past

• Identify areas that may need to be developed or strengthened

• Find aspects of the job which could be handed over to others


The big picture stuff

23

• Better as a team sport• Creates a level of accountability;• Spreads the workload;• Protects against insider fraud;• Avoids perpetuating financial mistakes or other shortcomings;• Introduces camaraderie.

• Teambuilding not always easy• Some are scared off;• Some do not want the responsibility;• Does not always feels like “real ministry”

• Create the right environment• Be open and transparent;• Be accountable and open to challenge;

• Opportunity for everyone to better understand church finances;• Operate solid financial controls and procedures.


Use the right accounting system for you

24

• Spreadsheet or Accounting package?

• Spreadsheet• Relatively cheap;• Intuitive to use – relatively little training required;• Both powerful and flexible;• Higher potential for “bugs”;• Not always easy for others to use.

• Accounting package• Specific design – single entry for each transaction;• Better internal controls;• Uniformity of approach;• Can look scary to a non accountant;• Licence issues

• Proper set-up is vital – do not cut corners at this point.

• There is real value in simplicity.


Recording transactions

25

• Perhaps a role for someone else?• A more simple accounting system – more likely to happen;• Methodical and an eye for detail;

• Recording details• Payee;• Date; • Description;• Account allocation

• Time consuming to have to return to transactions months later

• Clear procedures• Uniformity• Understanding

• This is the bedrock for good financial records.


Handling cash

26

• Counting cash offering• Entry level opportunity to join the finance team;• Clear and straightforward procedures;• Ability to count and record accurately;

• Find some counters and then ask them to:• Work in pairs;• Record offerings onto a standard template;• Sign and countersign the offering sheet;• Lock cash away or;• Pass to a person to bank.

• Avoid holding cash balances which exceed insurance limits

• Avoid using cash to make payments unless absolutely essential

• Remember to qualify for GASDS donations must be banked in full.• GASDS donation limit raised to £30 from April 2019


The payment cycle

27

Elements of the cycle• Authorisation; documentation; payment

• Key controls are necessary at the authorisation stage;

• A general move away from cheque payments to online banking;

• Get the basic controls right;• Who can authorise expenditure?• Who can sign cheques or release payments on-line?• Who monitors the cash available at the bank?• Who is responsible for keeping and filing the supporting paperwork?

• Insider fraud caused by excessive trust or too much responsibility in one person

• Be involved, but do not do everything


Payroll, pensions and benefits

28

• Low cost to outsource

• Costly down-side if not handled well

• Stewardship and other professional firms offers payroll bureau service• Payroll becoming more complex;• Timing is important too – e.g. covering holidays etc.

• Taxable benefits• Avoid wherever possible;• If used, make sure you understand the tax implications


Gift Aid• Generally well understood – provides a significant income stream

• Administer internally• Stand - alone primarily administrative process;• Gift Aid declarations – look after them well;• Submit regular claims – at least one per year.

• In some circumstances consider outsourcing• Third party agents can do this for you;• The third party handles all administration;• Donors give directly to the third party• Third party reclaims Gift Aid• Third party makes grant to church (including Gift Aid)

• Don’t forget GASDS


Budgets• Planning is a biblical principle (Luke 14:28-31)

• Budgets are where vision and finance meet

• Budgets should:• Be a financial representation of the spiritual mission of the church• Not be constructed in isolation• Not be overly complicated• Be a tool and not a constraint• Identify spending priorities for the period ahead• Help the church congregation take “ownership” for the future• Demonstrate good practice

• Budgets are central to the way that a church operates

• Make sure your spiritual leaders take significant responsibility

• Budgets should be “fit for purpose”


Periodic financial reporting

• Financial information is required:• By the leadership team to help run the church (time critical);• For specific purposes e.g. grant applications and regulatory returns;• By the broader church for information and accountability (less time critical)

• Financial reporting can be an early warning system

• Key issues:• Understand why we want to communicate• Know who we are trying to communicate with

• Church “insiders”• Grant funders• Regulators• General public

• Have a clear message• Be creative in delivering the message


Annual report and accounts• The culmination of your year’s work – report to those outside the church

• Accruals or receipts and payments?• Church structure – companies must use accruals accounting;• Annual income – churches with income over £250,000 must use accruals accounting;• Simple preference.

• Receipts and payments accounts• More straightforward and less prescriptive;• Easier for church congregation to understand;• Less expensive to examine.

• Accruals accounts• Adhere to charity SORP;• More disclosure required;• Get someone else to do them for you.

• Independent examination• Becoming harder for the individual;• More expected by the Charity Commission.


Annual report and accounts• The role of the treasurer is:

• Broad;• Time consuming;• Critical to the way that the church operates.

• Breaking the role down helps to:• See what an internal team can bring.• What could/should be outsourced professionally.

• It’s a big job so:• Look for help and guidance:

• Stewardship briefing papers and resources;• Denominational guidance;• Charity Commission and HMRC guidance

• Thanks and keep smiling


don’t forget to ask your questions

Click on the ‘Chat’ icon and write your question to ‘All Panellists‘ to ensure we see it and can answer it.

We apologise if we are unable to answer your question on the call. We will be sending detailed briefing papers after the call – if these still do not answer your question, please get in touch.

question time


We want to know what you thought…

Take part in our very quick survey linked in the follow-up email.

don’t hang up just yet!


Next dial-in: TBC

coming up…

Sign up to our Quarterly Dial-in mailing list to be the first to hear about the next dial-in!


thank you for participating in the call

please send any further questions to:[email protected]

or visit our website:www.stewardship.org.uk

stewardship’s quarterly dial-in€¦ · • submit regular claims –at least one per year. •...

Documents