The Role and Responsibility of the Treasurer What does a treasurer do Let us know in chat Common Treasurer Responsibilities All set right You are not alone The role of the treasurer ID: 1020661
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1. Nuts & boltsTreasurer Update Part IThe Role and Responsibility of the Treasurer
2. What does a treasurer do?Let us know in chat
3. Common Treasurer Responsibilities
4. All set, right?
5. You are not alone
6. The role of the treasurer……………………………….IndependenceShould not be a member of the vestryShould not be in a position of influence or control related to financesShould not be related to anyone in a position of influence or control related to financesMay not vote at finance meetings
7. Primary function
8. Ensure the integrity of the financial statements Understand how to read the financial statementsFund accountingDesignations With donor restrictionsWithout donor restrictionsBoard designatedEndowmentsCash v. AccrualFinancial StatementStatement of Financial PositionStatement of Activities
9. Ensure the integrity of the financial statements Recording Cash ContributionsPledgesPlateDesignated May require vestry/bishop committee review and acceptanceNeed gift acceptance policyA single gift of $250 or moreProvide a contemporaneous, written acknowledgementName of churchDate of contributionAmount of cash contributionStatement that goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits
10. Ensure the integrity of the financial statements Recording Non-Cash ContributionsHousehold goods, used clothing, real estate, vehicles, stock, etc.Need gift acceptance policyDonor 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.
11. Ticket SalesRaffle Tickets & Dinner TicketsDinner ticketsProvide a good faith estimate of valueRaffle tickets Not deductible
12. Donations of StockA 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, andthe name of the company.
13. Review and Reconciliation of the Financial Statements Monthly Treasurer receives all financial account statements—investments, bank, loan, etc. at church addressReconciles accountsApproves new vendorsReviews disbursement activityMay be check signerReviews financial statements
14. Provide Oversight of the Finances Ensures that internal controls are established and followedOversees counting & deposits of contributionsTwo independent counters, teams rotated, cannot record transactionsEnsures Parochial Report is completed & submitted accurately and timelyEnsures that the annual audit is performed & submitted timely
15. Annual AuditRequired by the Constitution and Canons of the Episcopal ChurchDue 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
16. Housing allowances
17. Clergy Housing AllowanceDual tax statusFor 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.
18. 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?
19. Form W - 2
20. The Three-Pronged Test – Lower of.......
21. What qualifiesMortgage payment or rentReal estate taxes, Home insuranceFurnishings & appliancesStructural repairs & remodelingYard maintenance & improvementsHousehold maintenance itemsHomeowners' association duesAll utilities (cable, electricity, gas/oil, water, sewer, internet, trash collection
22. What doesn’t qualifyRegular cleaning serviceGroceries, food for entertainingReimbursable business expenses
23. Determining the Fair Rental Value1) 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!
24. When to designate the housing resolutionMake 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.
25. Safety Net Language
26. Resourceshttps://episcopalchurch.org/manual-business-thods