Treasurers Cashbook & Accounts. Training Day 21 st January 2015, Sessions I & II - Cashbook

Transcription

1 Treasurers Cashbook & Accounts Training Day 21 st January 2015, Sessions I & II - Cashbook

2 Welcome to the day Introduction Facilities and arrangements in case of fire The Treasurers Cashbook - acknowledgments Future Training Days Plan for the day 2

3 9.45am: Plan for the Day Coffee and Registration 10.00am 12.30pm: Sessions 1 & 2 Downloading and using the cashbook (there will be a coffee/tee break at 11.15am-11.30am) 12.30pm 1.15pm: Sandwich lunch (Carey Room) 1.15pm 2.15pm: 2.15pm 2.30pm: 2.30pm 3.15pm : 3.15pm 3.30pm: Session 3 - Producing Final accounts Coffee / tea break Session 4- Gift Aid, GASDS & PCC income Questions 3

4 Sessions 1 & 2: Downloading & Using the Cashbook Bookkeeping and choice of accounting software Introduction to the Diocesan Cashbook V3.1, V5.0 Downloading and saving instructions Setting up a new cashbook & entering opening balances Entering transactions & choosing account codes Parochial fees and their treatment Parish Fund codes and their uses Checking balances and entering transfers Common Errors and how to avoid them Reports generated by the cashbook Troubleshooting and Support Accruals accounting & Version 5.0 4

5 Which bookkeeping software? Accruals accounting threshold 250,000 per annum. Bookkeeping records need to be maintained which give: 1. A fair picture of the state of the PCC accounts at any point in time, and 2. Enable the statutory accounts to be prepared 3. Also, which allow regular reporting as may be useful for the trustees Commercial software or Diocesan Cashbook / Other EXCEL / Manual Records 5

6 The Bath and Wells Cashbook - Introduction EXCEL based software developed by Matthew Brunt of Gloucester Diocese Advantages of using the cashbook 1. Offered at no cost 2. Automatic production of simple accounts 3. Parish Fund Codes 4. Support available Disadvantages of using the cashbook 1. Less suitable for larger parishes with larger income / complexity 2. Easier to corrupt / lose audit trail than commercial software Version 5.0 now available from Gloucester DBF website 6

7 Downloading and set-up The cashbook is available to download from the following page on the DBF website: You will need EXCEL 2003 or later installed on your computer. There is also a manual to download from the same page. The software may take a few minutes to download. Upon downloading, you will need to ensure that macros are enabled. (From Macro Security Enable Macros). This will enable certain useful features (sorting etc.) to work. Macros have been reported not to work with some Apple Mac versions, together with some of the formatting, otherwise the software works ok on Apple Macs 7

8 Enabling Macros 2003 EXCEL Go to Tools / Options / Security Tab / Macro Security & choose Macro Security, then appropriate security setting (medium or lower) EXCEL 1. Click Microsoft office button / EXCEL Options / Popular / Top Options for working with EXCEL / show Developer tab in the ribbon 2. Developer tab / Macro Security / [choose appropriate setting] 2010 EXCEL 1. As for 2007 EXCEL, but use File / Options / Customise Ribbon / tick Developer tab to display this if not already displayed 8

9 Cashbook Saving Advisable to save frequently with different dates e.g. West Parish PCC 2014 Cashbook changing the date each time you save Whenever you save, ensure that you save as a Macro-enabled Worksheet. In EXCEL 2010, it may not choose this by default, and you will lose the macro functionality if saved as a normal EXCEL spreadsheet. 9

10 Cashbook Saving Click here and choose Macro-Enabled Workbook 10

11 Beginning a new cashbook The cashbook is designed to hold one year s transactions only. The closing balances from a previous year can be imported into a new year in a fresh version of the cashbook. Main Menu Screen Fill in details of the Parish, Year, Opening balances etc. Statement balance - is the balance as shown on the bank statement Actual balance - this is the balance after adjusting for uncleared cheques / deposits from the end of the previous year. 11 This balance needs to be split between Unrestricted and restricted & should equal the total of the transactions on the Previous Year tab

12 12

13 Example Opening Balances NatWest Current Account has a statement balance of at the end of the year. There were 2 cheques outstanding at the end of the year, one for 100 for the organist, and one for 30 for church flowers. So the actual balance is at the end of the year in the NatWest Current Account. There were 2 other accounts: the NatWest Deposit account, which contained 8, and the CCLA CBF Investment account, and the statement balance was 21, at the year end. 13

14 Example Opening Balances On the screen above, you can see the opening balances now entered. In this example, a donation of 3,000 had been made the previous year towards replacement church bells. This money was paid into the church deposit account and 2,100 was still left at the beginning of the year. To reflect this, 2,100 of the money in the NatWest Deposit account is entered as unrestricted, with the balance as unrestricted. 14

15 Opening Balances - Previous Year Transactions Rec As part of the setting-up process, you will need to enter the unreconciled transactions from the end of the previous year into the Previous Year tab. On our example, there were 2 unreconciled cheques to enter as follows: Gloucest er Diocesa n Board of Finance This sheet is meant for transactions which remained unreconciled at the end of the previous year. When transfering across data, please cut and paste the area, DO NOT cut and paste the lines as this will corrupt the Cashbook Date Accoun t Type Code Description P Fund Code 1 P Fund Code 2 Transaction Details Money In Money Out Paying-in slip /Cheq number Vchr Number B/St Number 23/12/13 A U 31 Salaries & Wages Organist - November services x 27/12/13 A U 37 Flowers Flowers for church x 15

16 Opening Balances - Balances Tab Once the main menu has been completed, and the Previous Year Transactions entered, the Balances tab should look something like this: If there are any pink highlighted cells, this means that the opening balances do not agree please check that you have included all unreconciled items from the previous year in the Previous Year tab. 16

17 17 Opening Balances - Balances Tab

18 Entering Transactions The transactions tab is the main data entry sheet for the cashbook. Enter date, account, type, code as before. Parish Fund code if applicable (covered later in more detail) Description in transaction details Enter an amount (always positive) in either Money In or Money Out column Enter paying-in slip no., voucher no. (if applicable) for your records Mark an x when reconciled against the bank statement, together with the bank statement no. the transaction appears on. 18

19 Rec Entering Transactions Today's date: 13/01/14 Gloucester Diocesan Board of Finance NOTE: When printing please only select the pages which you require. This entire Cash book is many pages long and will print a header at the top of each page. Just selecting the print shortcut button may result in a waste of paper and ink. Rec Key: Error - please check cell This Cashbook has 1500 lines. To expand it to 2500, please press the 'Expand sheet' button. Doing this will increase the file size of the Cashbook Unreconcile d amount Amount not due yet Date Account Type Code Description P Fund Code 1 P Fund Code 2 Transaction Details Money In Money Out Paying-in slip /Cheq number Vchr Number B/St Number Totals: 4, , /01/14 A U 29 Clergy Expenses Rev Incumbent Expenses - December X 02/01/14 A U 34 Church Running Expenses Milk and biscuits X 03/01/14 A U 35 General Church Maintenance Boiler call-out X 03/01/14 A U 20 Total Parochial Fees Income Wedding Fee income X 06/01/14 A U 01 Collections at Services Collection from Sunday service 1, X 06/01/14 A U 28 Parish Share Parish Share payment (2013 balance) 2, X 06/01/14 A U 31 Salaries & Wages Pay vergers /01/14 A U 46 Other Church Utility Bills Refuse Collection X 14/01/14 A U 43 Heating & Lighting costs Electricity bill - EDF (DD) DD X 21/01/14 A U 02 Planned Giving - Tax Efficient Standing Orders 3, S/O 25/01/14 A R 54 Major Repairs to Church Building Repair of church bells 1,

20 Entering Transactions On the example above, a number of different transactions have been entered, and most of them marked as reconciled against the bank statement. Half way through the month, a payment was made from the restricted funds towards the repair of the church bells. A transfer was made from the deposit account to the general account to pay for this. However, this is not entered in the transactions sheet, but in the balances sheet, as shown on the next tab. Both accounts need to be marked as reconciled as before when the transferred amounts appear on the bank statements. A payment was made against parish share which is reflected on the Balances tab against Parish Share 20

21 Adding new transactions Editing Transactions A batch of new transactions may be entered at the bottom of the list of the transactions tab, then the whole sheet resorted to maintain date order. Deleting transactions Use the delete key (do not cut out the line), leaving an empty row, then resort by date using the sort button,so that the empty row will disappear 21

22 Which account code to use? List of accounts codes on the Accounts List tab Detailed in the manual according to your choice, the expense is automatically put into the corresponding row on the R&P accounts and the Return of Parish Finance This year, a sundry expense code is included. Common miscodings with treatment of parochial fees check that they reconcile with the parochical fees tab. Only the PCC element of the income will show on the final accounts. Check for consistent treatment in different years 22

23 Treatment of Parochial Fees The monthly total of PCC income received for parochial fees should be entered on the Fees Summary tab, which should tie in with the monthly or quarterly returns sent to the DBF. This would include the DBF share, the PCC share (including amounts for extras) and amounts due to retired ministers In our example, there has been one wedding in January and it may be entered as shown on the next page. The income is then entered on the transactions tab using code 20 Total Parochial Fees income When paid over, the amounts due to DBF and visiting ministers are recorded on the transactions tab using codes 47 Parochial Fees Remittance to DBF & 48 Parochial Fees Remittance to visiting Minister respectively. If total income against code 20 is different from the total shown on the Fees Summary tab, an error message will show 23

24 Parochial Fees Example Fees Summary Tab 24

25 Parochial Fees Example Transactions tab 25

26 Parochial Fees R&P tab e.g. This is the part that relates to the PCC only Will not be zero if the PCC has not yet recorded a payment on the transactions tab to the DBF or visiting minister for fees owed 26

27 Parochial Fees FAQ What happens if the PCC receives a cheque for the whole amount of a fee and it includes payments to the organist / vergers etc.? If the organist / verger is on the payroll of the PCC, whole income is coded to PCC income and the payment to the organist / verger would be shown as a salary payment (code 31 on the transactions tab) Otherwise, use the same code 20 Total parochial fee income to show the payment to the organist / verger. This would then disappear from the PCC accounts and the effect would be as if they were self employed and receiving income directly from the wedding couple In that case, good practice for the couple would be to issue separate cheques to the organist / verger. All such Extras should be agreed in advance with all parties, so that the fees do not come as a surprise! 27

28 Parish Fund Codes Used to distinguish between different types of income and expenses within the accounts Can be set up to produce the required notes to the accounts You can set up as many as you like (user defined codes) On the transactions tab, there are now 2 different columns for the Parish Fund codes, allowing any transaction to be linked to any 2 codes 28 Example You can use one set of codes for providing further information on receipts / payments heading and another set for identifying individual funds, as in the example on the next page:

29 29 Parish Fund Codes Example

30 Checking Balances & Entering Transfers At any point, you can check the running balances on the Balances tab, which will show you the Actual balances for each bank account and will include all transactions up to and including the current date and the Bank Statement reconcile[d] balances which will include all the amounts you have marked as reconciled with an X on the transactions tab. The tab will also show current restricted/unrestricted balances, any fees due to be paid over to the DBF/third party and the parish share balance to be paid over. You can also enter transactions between funds here 30

31 Transfers between accounts Transfer between accounts, between funds or the purchase/sale of Investments (uses Account code) without approval from the original donor or the Charity Commission Date Transfer from account P Fund code Type Transfer to account P Fund code Type Amount transferred Reason for Transfer Rec: Tfr from a/c Rec: Tfr to a/c 15/01/2014 B R A R 2, To pay for church bells repair x x 31

32 How to avoid common errors Be careful to avoid an incorrect date format, unrecognised by the cashbook. All dates should appear in the format dd/mm/yy. Example formats which won t be recognised include e.g & 12/1.15 Avoid cutting and pasting data in a way which corrupts the underlying formulas Don t use a date outside the current year will cause an error on the Balances tab Don t leave the Type or Account columns empty Enter transfers on the Balances tab only, and not on the transactions tab Enter investment income as income to a bank account, rather than an investment account (unless it is reinvested). 32

33 Cashbook Reports As items are entered in the transactions tab and in the fees summary, the Receipts and Payments account and the Return of Parish Finance tabs populate themselves. At the end of the year, these should be checked and the Return of Parish Finance sent off to the DBF, adding any additional fields which may be necessary for the year in question. Additionally, the Receipts and Payments, together with Notes, Independent Examiner s Report and Trustees Report will form the statutory accounts required to be presented at the PCC AGM. Both of these items are covered in more detail in the afternoon session. The next page shows how the R&P account and Return of Parish Finance may be looking at present. 33

34 34 Receipts and Payments accounts

35 35 Return of Parish Finance

36 Troubleshooting & Support Some errors can be fixed via the Fix#REF button on the main menu Others can be caused by incorrect formatting in the cashbook, or entering data that the spreadsheet is not expecting If stuck, you can contact support at the Old Deanery on (01749) Or, you can contact Matthew Brunt at Gloucester Diocese and he can log in remotely to your machine to fix the problem: (Matt s address is MBrunt@glosdioc.org.uk) 36

37 Accruals Accounting Check the Accruals box on the Main Menu Enter all opening accruals against each income and expense code on the accounts list Enter closing accruals at the end of the year Works the same way as R&P in other ways. Fairly crude for larger churches/pccs, a commercial package is probably recommended 37

38 Version 5.0 Version 5.0 has now been released, and will be available soon to download on the Bath and Wells website it is already available on the Gloucester DBF website. Main changes for version 5: 1. Separate Receipts and Payments / Accruals versions 2. Reconciling transactions process 3. Facility for entering recurring payments / standing orders 4. Updated version of the Return of Parish Finance 5. Accounts List allows prior year comparisons & other tweaks as well. A training session will be held in Taunton in the near future for this version of the cashbook. 38