Managing Trustees and Methodist Money
Please Note this page is currently under review: The document below is based on a booklet published in 2000 including the principles and responsibilities of trusteeship. It may be helpful for background information while we update the reference to legal requirements.
CONTENTS (All downloads are Pdf format)
EXCEPTED STATUS
1 Each local Church is a charity
2 Not registered - but excepted
3 Annual report and accounts
4 Schedule B
RESPONSIBILITIES OF THE MANAGING TRUSTEES (updated March 2010)
5 Stewardship of our resources
6 Church Council responsibilities
7 Obtaining appropriate approvals
8 Legal liabilities
9 Particular trustee responsibilities
THE APPOINTMENT OF THE TREASURER (updated March 2010)
10 Appointment
KEEPING THE BOOKS (updated March 2010)
11 Treasurer's duties
12 What records to keep
13 What to include
PREPARING THE YEAR END ACCOUNTS
14 Methods of accounting
15 Receipts and Payments basis
16 The statement of assets and liabilities
17 Accruals accounting - guidance
18 The year end procedure and timing
19 Specimen set of Church Accounts
20 Cash Analysis Book
21 & 22 Standard Forms of Accounts
ACCOUNTING METHOD AND ACCOUNTS SCRUTINY (updated March 2010)
23 Method of preparation of accounts
24 Level of accounts scrutiny required
DISTINGUISHING INCOME AND CAPITAL (updated March 2010)
25 Income
26 Capital
27 Distinguishing Income and Capital (Endowment)
28 Calculating Gross Income (and Total Expenditure)
29 Capital (Endowment) in the Methodist Church
FUNDS AND THEIR ASSETS (updated March 2010)
30 The difference between Funds and Accounts
31 Different Types of Fund
32 Unrestricted funds
33 Designated funds
34 Restricted funds
35 Endowment funds
36 Identifying the particular type of fund
INDEPENDENT EXAMINATION
37 When an independent examination is required
38 Choosing an independent examiner
39 The Independent Examiner's Task
AUDIT
40 When an audit is required
41 Qualification required
THE ANNUAL REPORT (updated March 2010)
42 What to include
43 How to go about the task
44 How to set it out
OTHER INTERNAL ORGANISATIONS (updated March 2010)
45 Internal organisations under the control of the Church Council
46 External groups and organisations responsible for their own finances
THE METHODIST CHURCH AND ITS MAIN FUNDS (updated March 2010)
47 The main (restricted) funds of the Methodist Church
48 The unrestricted Methodist Church Fund
OFFERINGS FOR EXTERNAL ORGANISATIONS (updated March 2010)
49 how to deal with offerings for external organisations
INVESTMENTS
50 Guidance for investing local Church funds
51 The role of the Trustees for Methodist Church Purposes (TMCP)
52 The role of The Central Finance Board of the Methodist Church (CFB)
53 The role of the Methodist Chapel Aid Association Limited (MCAA)
LOANS
54 How to deal with loans in the annual accounts
55 Arranging a loan
PROPERTY VALUATION (updated March 2010)
56 Accruals Accounting
57 Receipts and Payments
Investment property, leases and licences
BEQUESTS
58 Express trusts
59 Permanent endowment
60 Model Trust bequests
TRADING
61 Implications of trading by local Churches
62 Distinguishing between charitable and non-charitable trading
LEGAL AND OTHER REQUIREMENTS
63 Methodist Church Act 1976
64 Model Trusts
65 Standing Orders
66 Charities Act 1993
67 The Charities (Accounts and Reports) Regulations 1995
RESERVES POLICY
68 What are reserves?
69 What level of reserves do we need?
70 Reserves policy
MISAPPROPRIATION and INCOMPETENCE
71 Action to be taken on discovery of dishonesty or incompetence
GLOSSARY OF TERMS (updated March 2010)
APPENDIX
1 Exception Order
2 Assessment/Circuit contribution
3 Advance Funds
4 Finances in ecumenical situations
5 Annual budget for property
6 Model Trust monies
7 Insurance
8 Value Added Tax (VAT)
9 Retention of documents
10 Further information
11 Extracts of Standing Orders (updated March 2010)
12 Offerings Journal
13 Offerings Record
14 Cash Receipts form & 15 Expenses Claim Form
16 Bank Reconciliation form