Church of Ireland

1. Church of Ireland Charities registration and compliance

2. Welcome • Seamus Murray • Church of Ireland response • Support for Hon Treasurers • Accounts for Charities • Q and A session

3. Mr Seamus Murray Head of Secretariat Charity Commission of Northern Ireland Presentations: Charities Legislation Public Benefit

4. Response of Church of Ireland • New structures good for the charitable sector • Will improve practices and image • Sit well with existing structures and processes in C of I • Should not be too great a burden • Can be used to improve an already strong governance • Will be adhered to – it is the law

5. Response of Church of Ireland • How will the Church register? • Diocesan decision – by diocese or parish • Different responses in different dioceses • Diocesan decisions will be provided with support from the RCB • Interim register • Parishes/entities registered with HMRC • No action currently needed by them • Will be written to by NI Charity Commission to confirm registration details

6. Response of Church of Ireland • Expectations of parishes on Interim register • Accounts for 2010, earliest • Activity report for 2010, earliest • Parishes/entities not registered with HMRC • Parishes not registered as charities at present • No need for action at present • Registration process will commence after April 2010 • Process will be phased

7. C of I governance - future • C of I is divided into dioceses • Parish incumbent responsible to the Bishop of the diocese • Select Vestry responsible for looking after day to day income and expenditure, and the maintenance of the properties • Most properties are not owned by the parish, but are vested in the RCB • RCB established in 1870 as incorporated trust to hold property for C of I • Not within power of parish or SV to dispose of vested property • Not part of the accounting responsibility of the parish

8. Complying with Charities Legislation • Model for parochial registration • The charity will be based on the Select Vestry • The membership of the SV, as constituted from time to time, will be the Charity Trustees • The Charity will have as its main object the support of the charitable activities of the parish • The SV Charity will seek to be incorporated, and thus will survive (annual) changes in the membership • Facility to incorporate is built into new legislation • The SV Charity will seek to avail of ‘designated religious status’ • This will allow the Church to self manage the day to day ‘confirmation’ of appropriate people to serve • The NICC still has the ultimate power to intervene in cases of bad governance

9. Trusteeship • NICVA advice note 7 – Charity Trustee’s Duties ‘What is a charity trustee? …persons having ‘the general control and management of the administration of a charity’ are considered to be trustees…, whether they are aware of it or not…’ • See NICVA website www.nicva.org

10. Status of SV members • No fundamental change • Remain responsible for the good governance of the income and expenditure of the parish • Responsible to the Easter Vestry • Responsible to the wider Church • Responsible to the community • Insurance for SV members already in many cases covers the members for implied trustee responsibilities

11. Support for SVs • Model for parish registration • Model for statement of SV Charity purpose • Model for statement of public benefit • Model for annual statement of activity • Guidelines for the use of parochial treasurers • Models for compliant parish accounts • Specialised software to deliver compliance

12. Support for SVs • Model for parish registration • Model for statement of SV Charity purpose • Model for statement of public benefit • Model for annual statement of activity • Guidelines for the use of parochial treasurers • Models for compliant parish accounts • Specialised software to deliver compliance

13. Honorary Treasurer • Responsible to the SV to deliver • Robust processes • Clear and complete accounting records • Accounts which reflect all relevant transactions • Accounts which show how funds raised for specific purposes have been used appropriately – ‘fund accounting’

14. Robust processes • Two signatories for all cheques • All cash counted and signed for by more than one person • Segregation of duties • Clear and timely record keeping • Elimination of cash payments • Budgets for the incoming year • Report on all financial transactions to SVs and Easter Vestries • Etc

15. Changes from the past Parishes with properties vested in the RCB have to account for I and E and changes in cash and investment values, as now - but • All funds under the care of the SV must be reported • No longer an issue to do with church/diocesan funding – it would be illegal to omit funds • Most parishes will have no problem with this • Parishes which own properties directly will have to account for them in their balance sheet • Trusts holding property separate from the SV will need to re-examine the validity of the relationship with the SV

16. What happens now • 457 parishes and parish groupings • Much higher number of Select Vestries • Every SV is monitoring income and expenses • Every SV is producing annual accounts • Every set of accounts is individual to the parish • Every set of accounts is individual to the Hon Treasurer

17. The strengths of the current system • Strong form of parochial financial governance • Annual Easter Vestry • Annual elections • Annual financial report • Annual report is audited/certified • Hundreds of Treasurers give their time and expertise • The system works

18. Opportunity • To develop the template for parochial reporting to be consistent with new reporting requirements • To develop a C of I model to assist in parochial record keeping – manual or IT • To develop an IT tool to assist in producing reports and returns

19. Process • RCB has been looking at packs • Has looked at Data Developments (Finance Coordinator) and GCD Technologies (Omega Church) • Each of these has agreed to develop a C of I specific pack • Hope to have both available by end of November

20. Support for SVs • Model for parish registration • Model for statement of SV Charity purpose • Model for statement of public benefit • Model for annual statement of activity • Guidelines for the use of parochial treasurers • Models for compliant parish accounts • Specialised software to deliver compliance

21. Accounts for Charities • Charities law in NI specifies increasing accounting reporting requirements dependent on the income of the charity/parish • Charities legislation will not have a major impact on way most parishes currently prepare accounts • ‘Fund Accounting’ is good practice and also becoming a legal requirement • Fund accounting would be sensible for all parishes

22. Fund Accounting • Definition: ‘Method of accounting and presentation whereby assets and liabilities are grouped according to the purpose for which they are to be used’ • Funds of parish can be grouped into 2 main headings: • Unrestricted Funds • Restricted Funds • Unrestricted funds are available for spending on all the business of the parish • Restricted funds are for a specific purpose, and must be used for that purpose – eg organ fund/ upkeep of graveyard etc • The accounts must clearly distinguish between the receipt and expenditure of the two kinds of funds

23. Fund Accounting • A parish will have to be able to assign each transaction to a ‘restricted’ or ‘unrestricted’ fund • Most transactions will be in relation to unrestricted funds • The accounts of the parish will have to show the income and expenditure per fund and balance per fund at the year end • This is not unduly difficult, and in practice is how the funds will have been managed anyway

24. Sample Income & Expenditure Account

25. Sample Fund Accounts

26. Reports needed • Parochial report to Easter Vestry • As now, or could be adapted to match the report to the NICC • Parochial report to Diocese • As now • Report to NICC • Fund accounts

27. Reports planned for C of I software • Parochial reports for Select Vestry • Sundry reports which can be tailored to requirements of parish select vestries • Wide range of reports • Diocesan report • Specific report per diocese • Report for Charity Commission • Standard C of I format – compliant with NICC • Simple fund accounting based report

28. Report for Charity Commission • Required by new charities legislation • Fund accounting based • Standard format for C of I parishes • Summary of all income & expenditure for financial year • Simple, familiar descriptions

29. Report for Charity Commission • Both recommended accounting packs will incorporate the standard C of I report • A manual version of C of I report will also be made available • Report is simple, easy to understand format • RCB will produce report submission guidelines

30. Questions to the panel

31. Church of Ireland – Public Benefit 1draft The prime object of the Church of Ireland is the advancement of the Christian religion. Engagement with society as a whole and support for those needing help is fundamental to the practical delivery of the tenets of Christianity.

32. Church of Ireland – Public Benefit 2draft The Church, through its members and the disposal of its physical assets, provides: • A community building and enhancing focus, through the provision of facilities and support for social networks • Active promotion of community harmony and responsible citizenship • Support for the poor, the ill and the suffering • Religious education, and active involvement in the provision of general education • Support for the disadvantaged and for alienated members of society • Support for development and the relief of poverty and disease in disadvantaged areas of the world • The stewardship of buildings of general architectural and historical interest • The promotion of the arts through music and other media

33. Church of Ireland – Public Benefit 3draft The Church of Ireland is open to all. The support networks and activities of the Church reach out to a wide cross section of society, and the facilities provided by the Church are utilised by people from all backgrounds.

34. Thank you for coming Safe journey home