Message Board

Home > Internet > Message Board

ODBF » PCC and Deanery Treasurers » Accrued accounting

« Previous Next »

Author

Message

David Nicholls
New member
Username: Dnicholls

Post Number: 2
Registered: 10-2006

Posted on Wednesday, October 18, 2006 - 9:40 am:

I have been Treasurer of a relatively small rural PCC for a couple of decades (it seems like centuries)and throughout have produced cash accounts. This year a Fund in which the churchwardens were trustees under the Head Trusteeship of a national Church organization was transferred legally and with agreement by the Charity Commission to the PCC.
The Fund bears its original name and is Restricted. I therefore shall of course keep it separate from all other church accounts.
My problem is this: the Fund is itself well over the Ł100,000 cut off for accrued accounts and my question is: can I continue preparing cash accounts for the main business and prepare a separate set of accrued accounts for the new fund?
To my mind it would be a reasonable thing to do as the regular business of the church will never exceed the Ł100,000. There would however be a logistical problem in that the new Fund would not have its own income tax number and I suspect it would be difficult to register it separately with the Charity Commission in due course (see the Diocesan letter 2 Oct 2006)
Any ideas out there?

Steve Smith
New member
Username: Ssmith

Post Number: 2
Registered: 10-2006

Posted on Sunday, October 22, 2006 - 8:29 pm:

It's not the size of the Fund that causes the problem. It's the fact that your expenditure or (in this case) income for a year exceeds Ł100,000. As this income was such a special case I wonder whether an exception could be obtained. I have no knowledge of any let-outs, but it might be worth pursuing.

Viv Dorian
New member
Username: Vdorian

Post Number: 6
Registered: 10-2006

Posted on Wednesday, October 25, 2006 - 5:42 am:

I do wonder if it might be possible to register this fund separately with the Charity Commission. But even if you did, this might not help! We (the PCC) manage a separate registered charity (an endowment)as well as our Parish funds. In this case, the income is low and below the Ł100,000 threshold, whereas Parish income is above the Ł100,000 threshold. However, I was advised that, since money moves between the two, they must both be accounted for on the same basis - in our case accrued. Sorry I can't be of more help.

Richard Gregory
New member
Username: Richard_gregory

Post Number: 1
Registered: 6-2007

Posted on Sunday, June 24, 2007 - 7:04 pm:

David

I send this answer well after it was posted. My understanding as a Treasurer of a Parish which has used Accrual accounts for many years is that you have no option but to join the gang of us "who are elected!" Welcome aboard!! It really is no big deal. Try ACAT for help, in effect your accruals will make little impact.

Administration

The views expressed here are those of the poster. The Diocese of Oxford does not endorse any opinion posted here.