Greetings from the Treasurer's Desk!

Friends,

For those of us in church finance, there’s always something new to learn; tax changes, church reporting requirements, new forms for the Board of Pensions and so on. What I’m trying to accomplish on this web page is to give you new resources every so often to help you with the challenges of the work you do. If you know of something that would be helpful to others in our churches, please forward your thoughts to me by email. Here are a few things that have come across my desk in recent months:

Board of Pensions: If any staff at your church have had a salary change and are covered by the Board of Pensions or the pastor has had any change in their terms of call -- please fill out the ENR-111 . Also browse the Tax Resource Center at the Board’s site where you can find the annual Tax Guide for Ministers and Churches along with the Federal Reporting Requirements for Churches. Links to helpful Internal Revenue Service publications can be found there also. By the way, did you know that there is a page dedicated for Church Treasurer/Business Administrators?

Resources: Absolutely the best resource you can own if you are working in church finance and administration is the Church and Clergy Tax Guide by Richard R. Hammar. To order your copy in CD or book format, go to www.churchlawtodaystore.com .

Goodsearch.com: Please consider using www.GoodSearch.com as your search engine and typing “Presbytery of Newton” in the drop-down menu. For each search you make, the Presbytery will earn One Cent towards supporting our partnership projects in Kenya and it will cost you nothing. Get the word out to your congregations --- we earned enough last year for 4 primary school scholarships!

Tax Rebate: In order for people to receive the Federal Income Tax Rebate scheduled to begin in May, they MUST have filed an income tax return for 2007. If they do not ordinarily have to file an income tax return (for example, senior citizens living only on Social Security), they must file a form 1040A, in order to qualify for the rebate. You may find more information on www.irs.gov and type in “Economic Stimulus Payments Information Center” in the Search box.

I’m looking forward to meeting many of you at the Developing Church Leaders Event.

Shalom,

Nancy Steiner

Church Treasurers' Manual discusses:

• Functions of a church treasurer
• Internal controls and record-keeping
• Investments and endowment funds
• Audits and financial reviews
• Insurance and bonding
• Personnel
• Stewardship and budget

and many other topics of interest to church treasurers. This manual reflects the hard work and contributions of church treasurers from all over the country.

Check this page often for updates and for the latest information concerning matters financial, including news, reminders and timely tips. And please feel free to contact me with feedback and suggestions.

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The Presbyterian Church (U.S.A.) Investment & Loan Program has a new investment option -- the Mission Market Fund.

Effective March 1, 2008, the Introductory Rate is 2.81%.

Click here to find out more
(Must have Adobe Acrobat to view/download)

FAQs

2. How much do I reimburse the pastor for vouchered miles driven?
In 2008, the approved IRS standard mileage rate will be 50.5 cents per mile.

3. What kinds of loans and grants are available to my church?
Loans and grants are available to all member churches from Presbytery, Synod, and General Assembly. The Presbytery must approve all applications first, so be sure to call the Treasurer for a timeline before proceeding with applications. We also have Synod/General Assembly loan and grant applications on disk at the office, and can send one to you by mail.

4. How long must I keep financial records?
Length of time depends on the type of record. See the Record Retention Guidelines

5. Are ministers considered employees or self-employed?
A minister has dual status under the law. The IRS has one set of criteria, and the Social Security Administration has another. The IRS considers the minister an employee for income tax purposes, and the IRS is the agency that receives the quarterly 941 and annual W-2s from the employer. However, clergy are exempt from withholding, which means you do not withhold any federal or state income taxes unless you have a written request and agreement from the clergy to do so. Generally, they will prepay their federal income taxes by means of the quarterly estimated tax procedure.

The minister is considered self-employed for social security purposes; therefore, they will use the quarterly estimated tax procedure to report and prepay self-employment tax. You do not withhold social security and Medicare taxes from their income.

6. What is "effective salary"?
Effective salary is reported to The Board of Pensions for plan members of churches in order to calculate the dues for medical, pension and death/disability benefits they receive. For information on effective salary as well as dues information, service/salary change forms, retirement savings plan and tax guides, contact The Board of Pensions.

7. We have a new employee. Where do I get a W-4 (Employee's Withholding Allowance Certificate) and I-9 (Employment Eligibility Verification) for them to fill out?
For forms and publications, go to the IRS Website. Here you'll find a wealth of information for charitable organizations as well as forms and publications, including Circular E.

8. We have just received money from a special offering (or disaster fund, peacemaking, pentecost, etc.) and don't know where to send it.
All mission money received by Newton Presbytery churches should be sent to the Presbytery office along with a Mission Remittance Form. This would include unified and directed mission giving, special offerings, extra-commitment projects and the Johnsonburg Camp Capital Campaign.

9. We've just taken a collection for a current disaster……what do we do now?
This should also be sent with the Mission Remittance Form and mailed to the Presbytery. You may find account numbers and information for disaster relief projects set up by Presbyterian Disaster Assistance.

10. I'm on a Presbytery Committee and have some expenses to be vouchered. How do I go about getting reimbursed?
You must fill out a voucher, have the committee chair sign it, attach a receipt, and send it in to the Presbytery office.

11. What is required of our church as far as having our books audited?
The Book of Order in G-10.0401 states that minimum standards include "A full financial review of all books and records relating to finances once each year by a public accountant or public accounting firm or a committee of members versed in accounting procedures. Such auditors should not be related to the treasurer (or treasurers). Terminology in this section is meant to provide general guidance and is not intended to require or not require specific audit procedures or practices as understood within the professional accounting community."

12. What is the difference between an audit and a review?
A review made by a CPA "performs inquiry and analytical procedures to provide a reasonable basis for stating that he/she is not aware of any material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles." A review enables the CPA to provide the company and other financial statement users with limited assurance that material changes to the financial statements are not necessary for them to conform to generally accepted accounting principles.

An audit "performs a study and evaluation of internal accounting control as a basis for reliance thereon in determining the extent, nature, and timing of audit tests. Obtains corroborating evidential matter through inspection, observation, confirmation, and other necessary audit procedures to support an opinion on the financial statements." An audit allows the CPA to give the company and other financial statement users a high level of assurance that the financial statements are fairly presented.

13. Our church would like to computerize - do you have any suggestions?
Most financial software companies will be happy to send you a demo disk/CD for you to try. Many will let you download or see a demo from their website. Here are a few that I'm aware of:

Church Windows 1-800-533-5227
Power Church Plus 1-800-486-1800
Servant Keeper 1-800-773-7570
Shepherd's Staff 1-800-325-2399
Automated Church Systems 1-800-736-7425
Membership Plus 1-800-644-6344

If you'd like to speak with some of our churches who have purchased software and see what they use, call me here at the Presbytery office.

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Records Retention Guidelines

Accounting
Bank statements and deposit slips-
Payroll (time cards)
Expense reports
Subsidiary ledgers (accounts payable & receivable ledgers)
Checks (payroll & general)
Payroll (individual time reports and earnings records)
Vouchers for payment to vendors, employees, and others
Audit Reports
General ledgers and journals
Support for endowment contributions
Unrestricted contributions notification letters
Restricted contribution notification letters

Corporate
Mortgages, notes, and leases(expired)
Annuity gift agreements
Bylaws, charters, and minute books
Checks (taxes, property, and fullfillment of important contracts)
Contracts and agreements
Copyrights and trademark registrations
Deeds and easements
Labor contracts
Life income agreements
Patents
Retirement and pension records
Tax returns and work papers
Underlying tax return support

8 years
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
Indefinitely
7 years

Correspondence
General
Legal and Tax
License
Information

Insurance
Policies (all types - expired)
Accident reports
Fire inspection reports
Group disability reports
Safety reports
Claims (after settlement)

Personnel
Daily time reports
Contracts (expired)
Withholding tax statements
Personnel files (terminated)
Disability and sick benefits records

6 years
8 years
8 years
Indefinitely
Indefinitely

Electronic Records - all types
Records on computer / diskettes / CDs
Email

reviewed annually
30 days (current file); 18 mos. (backup)

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Grant & Loan Requests and Applications

There are many grants and loans available to member churches through Newton Presbytery. These include Shared Ministry Grants, Congregational Revitalization Grants, New Thing Grants, and Capital Construction Loans. Contact the Treasurer for specific information regarding grant and loan requests.
Presbytery Loan Fund Guidelines
Synod Loan Application Form
Incentive Loan Application Form
CLP & PILP Application Form
New Thing Grant Form
Shared Ministry Grant Form
Presbytery Loan Application

Expense Voucher Instructions & Forms

Expense Voucher Form

Mission Remittance Instructions & Forms

Mission Remittance Form and Instructions

If you would like information about the Covenant Presbyterian Insurance Program
that insures the Presbytery, please click here: www.cpip.org