Treasurer's Role and Responsibilities Unveiled
Dive into the encompassing duties of a treasurer, from overseeing finances to ensuring financial integrity, independence, and understanding financial statements for accountable financial management.
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Nuts & bolts TREASURER UPDATE PART I THE ROLE AND RESPONSIBILITY OF THE TREASURER
What does a treasurer do? LET US KNOW IN CHAT
Oversee Oversee counting & deposits Ensure Ensure bills are paid & sign checks Facilitate the timely completion & submission of the annual audit & parochial reports Facilitate Common Treasurer Responsibilities Reconcile Reconcile all financial accounts Report Report the financial condition to the vestry/bishop committee Follow Follow the canons Present Present the budget at the annual meeting
The role of the treasurer The role of the treasurer . .Independence Independence Should not be a member of the vestry Should not be in a position of influence or control related to finances Should not be related to anyone in a position of influence or control related to finances May not vote at finance meetings
Ensure the integrity of the financial statements Review and reconciliation of the financial statements monthly Primary function Provide oversight of the finances From an independent perspective
Understand how to read the financial statements Fund accounting Designations With donor restrictions Without donor restrictions Board designated Endowments Cash v. Accrual Financial Statement Statement of Financial Position Statement of Activities Ensure the integrity of the financial statements
Recording Cash Contributions Pledges Plate Designated May require vestry/bishop committee review and acceptance Need gift acceptance policy A single gift of $250 or more Provide a contemporaneous, written acknowledgement Name of church Date of contribution Amount of cash contribution Statement that goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits Ensure the integrity of the financial statements
Recording Non-Cash Contributions Household goods, used clothing, real estate, vehicles, stock, etc. Need gift acceptance policy Donor acknowledgement includes the description of the gift (but not the value). It is the donor s obligation to determine and defend the fair market value of the gift. Ensure the integrity of the financial statements
Dinner tickets Provide a good faith estimate of value Ticket Sales Raffle Tickets & Dinner Tickets Raffle tickets Not deductible
Donations of Stock Donations of Stock A church is NOT an appraiser and should NEVER provide donors with a value for donated stock. Instead, provide: A receipt that acknowledges the date of the gift, the donor s name, the number of shares given, and the name of the company.
Treasurer receives all financial account statements investments, bank, loan, etc. at church address Reconciles accounts Approves new vendors Reviews disbursement activity May be check signer Reviews financial statements Review and Reconciliation of the Financial Statements Monthly
Ensures that internal controls are established and followed Oversees counting & deposits of contributions Two independent counters, teams rotated, cannot record transactions Ensures Parochial Report is completed & submitted accurately and timely Ensures that the annual audit is performed & submitted timely Provide Oversight of the Finances
Annual Audit Annual Audit Required by the Constitution and Canons of the Episcopal Church Due September 1st Send to the Secretary of Convention (EDLA) or CFO (DioCAL) Resource: Manual of Business Methods in Church Affairs (English & Spanish) https://episcopalchurch.org/manual-business-methods
Clergy Housing Allowance Clergy Housing Allowance DUAL TAX STATUS For federal and California tax purposes, clergy are taxed as employees. For Social Security and Medicare tax purposes, clergy are taxed as self- employed and must pay SECA (Self Employment Contributions Act) taxes.
Who? Who? Who qualifies for the housing allowance exclusion? Who designates the amount of the exclusion? Who reports to the IRS? Are survivors eligible for the exclusion?
Form W Form W - - 2 2
The Three The Three- -Pronged Test Pronged Test Lower of....... Lower of....... The actual amount you spend OR The amount that is designated as housing allowance OR The Fair Rental Value of your housing, furnished with utilities.
What qualifies What qualifies Mortgage payment or rent Household maintenance items Real estate taxes, Homeowners' association dues Home insurance All utilities (cable, electricity, gas/oil, water, sewer, internet, trash collection Furnishings & appliances Structural repairs & remodeling Yard maintenance & improvements
What doesnt qualify What doesn t qualify Regular cleaning service Groceries, food for entertaining Reimbursable business expenses
Determining Determining the Fair Rental Value Rental Value the Fair 1) Have a realtor give a written estimate of rental price as furnished on their letterhead. 2) Check online ads for similar rental homes and furnishings. 3) Other reasonable method. Be sure to add utilities to the cost you determine. Keep all documentation in case of audit!
When to designate the When to designate the housing resolution housing resolution Make the resolution before the beginning of the calendar year. You cannot include expenses incurred before the resolution is passed. For example, if the resolution is passed in March, your expenses for January and February cannot be included when you calculate your housing allowance. Midyear adjustments are fine but are prospective not retrospective.
Safety Net Language Safety Net Language Housing allowances are passed each year. Use Safety Net language to prevent gaps if future resolutions are not passed before year- end. for this and all future years, unless otherwise provided
Resources https://episcopalchurch.org/manual-business-thods Email the Rev. Michele Racusin, CFO Diocese of California @ micheler@diocal.org Download the Manual of Business Methods @ https://www.episcopalchurch.org/finance- office/manual-of-business-methods/ micheler@diocal.org
