It’s a new financial year, and this is a good time to think about a number of items pertaining to your church’s finances. Here are some key things to consider.
Payment Summaries Income Statements for all employees
Those documents you used to produce called Payment Summaries are now referred to as Income Statements; a statement of how much income each employee has earned in the year so they can do their tax returns. All employers, including churches, need to provide their staff with income statements at the end of the financial year. These are no longer distributed in paper form but are distributed into people’s MyGov accounts through STP. Your financial management software should be able to help you with this:
2. If your Financial Year ends on 30th June, its close-off time!
For those churches who have a financial year end on 30th June, it is time to start closing off the books and producing end of the year financial reports.
3. Plug in the Numbers for Your New Budget
Hopefully the church has already had a meeting to agree on the new budget numbers for 2020/21. Now is the time to import those budget figures into your accounting system so your reporting is accurate from day 1.
4. If your Financial Year ends on 31st December, report to ACNC!
For those churches who have a financial year end on 31st December, 30th June is the traditional final day for completing your Annual Information Statement to the Australian Charities and Not-for-profit Commission (ACNC). However, in a press release dated 26th March 2020, ACNC has advised that due to the COVID-19 crisis, the due date for these statements has been delayed until 31st August 2020. So, you still have a little time – but the on-line system will get busier closer to this date, so if you have your information assembled you may like to get this submitted sooner rather than later.
5. Return to Work SA Returns
The employer remuneration report for Return to Work SA can be submitted from 2 July 2020.
6. A Thing Not to do: Super Changes
There are no changes to superannuation at 30th June this year. The proposed increases in the Superannuation Guarantee rate has been placed on temporary hold, so this year you DO NOT need to increase the superannuation contribution percentage. The rate remains at 9.5% until 30th June 2021, but there will be increases in coming years eventually up to a rate of 12% by 2025. If you are forward thinking enough to be contemplating next year’s budget already, please bear in mind that the rate will be increasing.
7. A Thing Not to do Yet: ACNC Reporting for 2020/21
If 30th June is your end of financial year – you will need to do your Annual Information Statement for ACNC in the next six months. But don’t get concerned about doing it yet. For a start, the form has not yet been released, but also they really DO want you to confirm your financials before you report.
8. A New Process to Manage: ECS Recording for 2019/20
July 2019 saw the implementation of the External Conduct Standards (ECS) for Australian organisations that directly support overseas operations (refer here for my previous blog.) and the requirement to record the relationship between the two.
These records do not need to be submitted to the ACNC unless asked for, but the local church does need to create them and have them available. Most of the information that you need to record should be found in both your financial statements and your Annual Reports. So now is a good time to consider how you can incorporate the ECS record keeping into your standard processes for creating the church Annual Reports.
And – happy new financial year from all of us here at BCSA.