Welcome to our December edition of the newsletter!

It is perhaps a well-worn cliché, but Christmas seems to come around quicker every year. When this newsletter is published, it’s less than a week before the great day.

Are we approaching the celebrations with a sense of wonder and anticipation? Or is it more that we are familiar with the story, know the carols by heart, and have a deep-down feeling of ‘deja vue?”

Whatever your feelings, we hope that the newsletter provides opportunity for a little reflection away from the festivities and provides “food for thought.”

1. What’s new
   • Charity Commission refreshes guidance to avoid fraud
   • Churches Aid Foundation protection against banking scam fraud
   • Economic Crime and Corporate Transparency Act 2023 – Update from Companies House
   • The new Corporate Governance Code
   • Making Work Pay – Government Consultations
2. Points to Ponder
   • The Church is increasingly seen as irrelevant to everyday lives
   • Fallout from elections – can we overcome our differences?
   • Christmas approaching – How are we supporting folk in our churches and communities?
   • St Andrew Patron Saint of Scotland – St Andrews Day 30th November – Does this have 21st century relevance?
   • Anniversary of the Nicene Creed 2025 1700 years since the Council of Nicaea. How relevant are statements of faith in the 21st century?
   • Law Society update on language re disability terminology
   • As 2024 closes, what challenges is your church facing, and how are you dealing with them?
   • Reminder of the looming financial year end – looking forward to 2025
   • Tony Campolo Death
3. Helpline Q&A
   • Handling Year-End Cash and Cheques
   • Independent Examination
   • Letter of Engagement
   • Finding a New Independent Examiner
4. Special Interest Items
   • Faith Charities in Focus event- Bristol 1 February 2025
5. Partners in Ministry
   • Just Money Movement – Time to think about ethical banking
   • Ecclesiastical Insurance – Christmas Events: Churches bringing furry friends to festivities.
6. Spring Training Programme
7. Charities Engagement Team – Upcoming webinars
8. Final Thought
   • Thank you for your support!

FYI, The ACAT office will be closed from Tuesday, December 24th, and will reopen on Thursday, January 2nd.

Merry Christmas,

Ashley Ellis
ACAT Executive Officer

Churches Aid Foundation protection against banking scam fraud

Following on from the Charity Commission guidance on avoiding fraud, the Charities Aid Foundation has also issued advice on protection against banking scams. In their experience, charities frequently have little or no effective protection in place to minimise the risks associated with banking-related scams.

These scams appear in various forms:

• Charity email addresses hacked into, resulting in urgent instructions to transfer funds.
• Emails purporting to come from an existing supplier requesting payment by direct debit or to transfer funds to a new account.
• Fake invoices purporting to have been sent by a known supplier.
• Unusual emails/phone messages requesting confidential bank account details.
• Emails with suspicious attachments.

The message which banks frequently emphasise is to be aware of any request to transfer funds to a new account. Never divulge confidential bank account details either over the phone or in an email. Any such request should be verified immediately by separately contacting the security section of the bank concerned.

This further emphasises the need for churches, in particular, to ensure that robust procedures are in place for the approval and authorising of payments and for thorough scrutiny of any request to transfer funds to new bank accounts.

Economic Crime and Corporate Transparency Act 2023 – Update from Companies House

A government policy paper regarding the Economic Crime and Corporate Transparency Act 2023 was published on 16th October. The changes brought about by the Act commenced in March 2024 and will continue to be phased in over the next two years. These changes aim to reform the role of Companies House.

It seeks to improve the transparency of UK companies and other legal entities, strengthening the business environment and reducing economic crime.

The summery objectives of the Act are:

• To ensure all directors/trustees, etc, who are required to deliver a document to the registrar do so.
• That information delivered to the registrar is accurate
• That the records maintained by the registrar don’t create a false or misleading picture of an organisation.

Charities, including independent churches, that may be registered as charitable companies should be aware of these changes. There should be no real concern where there is already strict adherence to statutory reporting requirements.

However, it is an opportunity for churches and charities to review their current statutory reporting procedures.

The new Corporate Governance Code

The new Corporate Governance Code 2024 comes into force on 1st January 2025. Whilst the code is essentially aimed at the business sector. The sections cover areas of relevance to charity trustees and are well worth considering.

1. Board Leadership and Organisations’ Purpose’ – Boards should consider how they fulfil their purpose and role both collectively and individually.
2. Division of Responsibilities – the different roles within the board and the significance and importance of each and how they should work effectively together.
3. Good Practice Guidance for the successful management of board committees – Oversight of sub-committees and working groups to ensure they function as intended and are fully accountable.
4. Composition, Succession and Evaluation – Ensuring that the board has the required breadth of skills together with diverse representation.
5. Audit, Risk, and Internal Controls – At the heart of effective governance are external financial scrutiny, adherence to prescribed standards (SORP), risk assessment and management, and the continual monitoring of internal controls.

It may be a difficult subject to embrace, but church governing bodies can frequently significantly improve their effectiveness by considering the regulatory standards set for the corporate sector.

Making Work Pay – Government Consultations

In October, the government issued three consultation papers as part of its “Making Work Pay” initiative. These papers covered the following employment aspects:

• Industrial relations
• Zero hours contracts
• Strengthening sick pay

The initiative aims to support more people to stay in work, make work more family-friendly, and, as a result, improve living standards, which, in turn, is hoped will boost economic growth, resilience, and conditions for innovation.
 
As employers, churches have a responsibility to ensure they adhere to good standards of employee relations, together with better than minimum terms and conditions for their staff.
 
Now might be a good time to objectively review how those who work for your church feel about their employer. Is the working environment an encouraging and positive place to be? Do your staff feel they are valued and remunerated fairly?

The Church is increasingly seen as irrelevant to everyday lives

A recent article by Vanessa Allen, MailOnline, published on the Anglican Mainstream website, indicated that in a recent poll, 39% of those contacted had an unfavourable view of the state church, with only 32% having a favourable opinion. This poll was conducted before the recent John Smyth Review.

For most people living in Britain, the Church is sadly not seen as being of relevance to everyday life. There appears to be a general downward trend in church attendance. Whilst it could be argued that lifestyle and work issues impact this trend, the central question remains: how do we communicate the relevance of the Christian message to our communities?

As Christmas again approaches, how do we cut through the tinsel? How do we communicate the joyful relevance of Christ’s coming to earth to those in our communities, blissfully ignoring the impact that faith in the Bethlehem babe can have on their lives?

Fallout from elections – can we overcome our differences?

The Assisted Dying Bill was passed in the House of Commons on 29th November by 330 votes to 275.

Among individual church members, there will be strong views on either side of the debate, particularly those who have experienced first-hand the suffering of a terminally ill loved one or close friend.

Whatever the views of our church members, some principles contained in an article written by Brendan McCarthy over seven years ago are worth emphasising.

• The affirmation of life
• Caring for the vulnerable
• Building a caring and cohesive society
• Respecting Individuals

To which we might also add

• Improved and consistent palliative care

Christmas approaching – How are we supporting folk in our churches and communities?

As Christmas approaches and our various church events begin to take place, there is a sense across the country of the increased needs of many in society.

• Over 161,400 Ukrainian refugees have been welcomed in the U.K. but they long to see an end to the conflict to enable them to return home.
• The English Channel is a witness to the daily risks to life by refugees seeking a better life for themselves
• The increasing cost of living continues to stretch family budgets to breaking point.

If we then add those in our communities and, sadly frequently among our church members who

• Suffer in silence from domestic abuse
• Are parents struggling to cope with the demands of parenthood
• Have challenging mental and physical health or are caring for a loved one or close friend who has.
• Battle constant addictions without adequate support
• Face a first Christmas without their spouse, partner, or close friend.

All these folk with different pastoral needs are on our very doorstep. How aware are we of the needs of those around us, and in what ways do we provide an opportunity to demonstrate practical and pastoral support?

St Andrew Patron Saint of Scotland – St Andrews Day 30th November – Does this have 21st century relevance?

30th November is St Andrews Day and a bank holiday in Scotland since 2006. As one of Jesus’ twelve disciples and who brought along his brother Peter, Andrew is prominently featured in the gospel narratives.

Tradition has it that he subsequently travelled throughout the Black Sea area and Greece, eventually martyred on the isle of Patras. It is said that his bones were brought to Scotland by a fourth-century monk following a dream in which he was told to take the remains as far away from Patras as possible.

The diagonal cross or saltire commemorates the method by which tradition has it that St Andrew was crucified.

The notion of a patron saint may be of questionable relevance to those who are perhaps less nationalistic or not of a “high church, Roman Catholic, Anglican, Orthodox, Christian tradition”. Non-conformist churches have a different perspective on both living Christians and those who have died in the faith of Christ. Both are regarded as members of the “communion of saints”.

In summary, it could be argued that celebrating saints’ days is a way of remembering history and encouraging the continuing fellowship that binds together Christians, living and departed. Whatever our differences, we are part of that global family, called by God, twenty-first-century disciples of the living Jesus.

Anniversary of the Nicene Creed 2025 1700 years since the Council of Nicaea. How relevant are statements of faith in the 21st century?

June 2025 will see the 1700 years anniversary of the Council of Nicaea, the first attempt to construct a statement of faith by the early Christian Church on which all the then “factions” could agree.

Since then, the various Christian denominations that have come into being throughout the world have drawn up their own “statements of faith” with particular emphases on aspects of theology and doctrine.

In recent years, the Church has faced the challenges of an increasingly diverse society. This has required reflection on the central tenets of the Christian faith and their meaning in contemporary life.

In such circumstances, a basic statement of faith, grounded in biblical truth is arguably essential, not only to believers, but also as a witness to a secular world where values can change according to political persuasions.

Law Society update on language regarding disability terminology

How sensitive are we when describing someone with a particular disability? This is perhaps not a subject to which trustees and members of a church governing body may give much thought. But perhaps we should.

Language changes over time. Historically, society has become more aware of disability and equality needs. Consequently, how we speak of and treat those church members and folk in our wider communities with disabilities is of critical importance.

The challenging Law Society article provides us with a “wake up” call. Are we sensitive enough to ensure the disabled feel welcomed and equally valued members of our churches?

As 2024 closes, what challenges is your church facing, and how are you dealing with them?

An article published two years ago on the Gravity Commons website asked the question, “What are the challenges facing the church?” Two years after this article, the issues raised remain very evident.

• Prejudice – not just racial but an inability sometimes to respect different views and interpretations of faith.
• Women’s ministry – the role of women and the ministry they exercise remains a controversial subject in some sections of the Church.
• Safeguarding – protecting children, young people and the vulnerable from abuse.
• Mental welfare – dealing with anxiety, stress,
• Family pressures – relationship breakdowns, making ends meet financially
• Homelessness, – welcoming the stranger. Supporting those on the margins

As predominantly financial administrators and lay trustees, how aware are we of these issues either in our churches or in the wider community we try to serve and support? Are we content to leave such challenges to those in pastoral ministry? It’s worth remembering that, as governing body members, we are all jointly responsible for our churches, their activities, and how the faith is proclaimed and presented to the wider world. Jesus’ word in Matt.Ch.7 “You will know them by their fruits” (NKJV), has probably never been more relevant.

Reminder of the looming financial year end – looking forward to 2025

The anticipation and subsequent celebration of Christmas can cause us to momentarily forget that a new year beckons, and for some churches, that means the end of one financial year and the start of another.

It is a cliché brought out most years at this time. The end of one year and the start of another offers a chance for new beginnings. To reflect and re-set our priorities.

Resetting priorities, aims and objectives, involves reflecting on past decisions, their rationale, and their relevance.

The past informs the present, and the present can determine the future.

How are we approaching 2025?

Tony Campolo Death

Last month (19th November) saw the death, aged 89, of Baptist Pastor, sociologist and progressive Christian thinker, Tony Campolo.

His faith and interpretation of the gospel were greatly influenced by John Wesley and Wesley’s vision, which Campolo described as “warm-hearted evangelism with an incredible social vision. Out of this conversion grows the great Wesleyan revival with all its social consciousness, attacking slavery, championing the rights of women, ending child labour laws.”

For Campolo, caring for the poor was an integral part of proclaiming the gospel, using the term red letter Christian as a reference to the way the words of Jesus on the subject are printed in many versions of the New Testament.

Tony Campolo travelled extensively across America and beyond, speaking to up to 500 groups per year. His central message was to let Jesus transform people’s lives. The resulting transformation would be good news for the hungry and oppressed.

In this, he constantly challenged evangelicals who, in his opinion, had embraced right-wing politics and “comfortable middle-class conformity.”

Whilst the accuracy of this view may be open to question, the challenge of feeding the hungry and supporting those in our churches and communities for whom life is a constant struggle should be an essential part of our Christian witness. One which, as treasurers and church trustees, we must surely prioritise.

Handling Year-End Cash and Cheques

Q: Can you please remind me what to do about cash and cheques received on Sunday, 29th December, that won’t reach the bank account until after the New Year? What about cheques that I have posted out before Christmas that won’t be processed until after the New Year? Our financial year follows the calendar year and we use Receipts and Payments (R&P) accounts.

A: For churches preparing accounts on a Receipts and Payments basis, all cash and cheques received in the current financial year should be included in the 2024 receipts and cash/bank balances. Cash should be entered up as petty cash – the writer has a cash account in his software called ‘Cash Offerings’. When banked, a transfer is made to the current account.

If a cheque is issued before the financial year-end but is not paid in by the payee or does not appear on the bank statement until early in the next year, it should nonetheless be included as a 2024 payment.

If you use credit cards, debit cards or charge cards, transactions should be recorded at the time of purchase and treated as 2024 payments.

Independent Examination

Q: I’m a new treasurer and would like some background information about the Independent Examination. Can you assist please?

A: Thank you for taking on the role – we are sure that your church appreciates this. Please look out for our training courses – session 3 of the Basics course looks at different aspects of independent examination. Please sign up to our newsletters and look at our training webpage https://www.acat.uk.com/training-events/.

You can also find a chapter in our Handbook https://www.acat.uk.com/handbook/chapter-11-independent-examination/ [login required].

The Charity Commission have two important guides – please search for CC31 and CC32. CC31 is written as ‘Guidance for Trustees’ whereas CC32 is for Independent Examiners. Reading the latter document gives a guide, called directions, as to what the Independent Examiner is looking for so is helpful for the church treasurer’s preparation!

Letter of Engagement

Q: I’m told that there is a ‘Letter of Engagement’ for Independent Examiners. Where do I find this please?

A: This letter should be issued each year by your Independent Examiner [IE], or maybe the IE will expect the church to prepare it. The appointment usually requires a Letter of Engagement and covers the accounting year under review. The letter is a record of the Independent Examiner’s appointment and clarifies the duties for both parties. A template letter can be found in Appendix 1 at the end of chapter 11 of our Handbook (link already given) or, if you are a member of a wider church organisation, you may find a template letter is available on the website of your central body. If you have problems, please ask the Helpline using a contact form.

Once the Independent Examination is complete, the IE will issue a signed form – a template can be found on the Charity Commission webpages – it is available in both Word and pdf formats:

R&P https://www.gov.uk/government/publications/independent-examiners-report-template-for-receipts-and-payments-accounts

Accruals https://www.gov.uk/government/publications/independent-examiners-report-template-sorp-frs-102

Finding a New Independent Examiner

Q: We’re just coming up to our financial year-end and discover that our Independent Examiner has retired. Can you assist us in finding a replacement please?

A: I’m sorry, but we can’t assist directly as we don’t have a vacancy board. We have pulled together some suggestions, which you will find in the resources area on our website, Recommendations when looking for an Independent Examiner – ACAT [login required].

Faith Charities in Focus event – Bristol 1 February 2025

Advance notice for members in the Southwest or who have easy transport access to Bristol.

Hosted by Woodlands Church the event will take place on Saturday 1st February 2025, from 9:00am – 1:30pm at Woodlands Church, Bristol. The key themes in the half day are:

• Buildings
• Volunteers
• Money

With expert speakers including representatives of the Charity Commission for England and Wales.

A previous Faith in Focus event in 2023 brought together over 150 delegates from across local churches and other Christian charities for a morning of training, equipping, and networking and was very well received.

ACAT will be represented as an exhibitor, so if you do come along, please chat with our representative during the day.

The sessions are:

• Getting the best from your buildings
• Making good use of financial resources
• Working well with volunteers
• Excellence in Trusteeship
• Panel session – for your questions

There will also be an exhibition space during the event where you can meet experts from various organisations for discussion and advice, as well as take the opportunity to meet and share your experiences with other delegates.

An advance booking fee of £5 is payable or £10 on the day. To book your place(s) or for more information including details of the speakers and exhibitors please visit: https://www.woodlandschurch.net/faithcharitiesinfocus

Just Money Movement – Time to think about ethical banking

The relationship our churches have with their banks is extremely important. Most of the time we probably don’t give the subject a second thought. But to what extent are we concerned by the underlying policies and values which influence the way our banks go about their business?

An article on the Just Money Movement website is a challenge to look closely at who we bank with and whether we should be considering the importance of “ethical banking” in the context of climate change issues and a more humane, fairer way they deal with customers.

https://justmoney.org.uk/wp-content/uploads/2024/12/Money-Makes-Change-article-banking.pdf 

Ecclesiastical Insurance – Christmas Events: Churches bringing furry friends to festivities.

As various church-based Christmas events take place, particularly if they involve the inclusion of animals, it is important to consider the risks involved and the adequacy of arrangements together with insurance cover in such circumstances.

https://www.ecclesiastical.com/media-centre/camel-ye-faithful/

• How to Account for Church Income and Expenditure: Problems and Pitfalls
  • Date: Thursday 16 January
  • Time: 7 PM – 8 PM
• How to Account for Church Receipts and Payments: Problems and Pitfalls
  • Date: Wednesday 22 January
  • Time: 12:30 PM – 1:30 PM
• Tax Issues on Trading for Churches
  • Date: Thursday 23 January
  • Time: 6 PM – 9 PM
• Accruals Accounting – Accounts for Larger Churches (2-session course)
  • Date: Saturday 1 and 8 February
  • Time: 10 AM – 12 noon
• Trustee Training for Churches (2-session course)
  • Date: Saturday 1 and 8 February
  • Time: 2 PM – 4 PM
• The Church Treasurer: Insights into the Role and Responsibilities
  • Date: Tuesday 4 February
  • Time: 7 PM – 8 PM
• Gift Aid: Maximising the Benefits and Reducing the Pitfalls
  • Date: Thursday 6 March
  • Time: 6 PM – 9 PM

We also plan to run a ‘Being a Treasurer: The Basics’ course in March, so keep an eye on future training newsletters and the website training pages.

Do get in touch if there is a particular course you would like to see in the programme during 2025. Please keep checking the newsletters, website and social media for details as they become available. Contact Cath Fox to discuss further on training@acat.uk.com.

The Charity Commission for England and Wales registers and regulates charities to ensure that the public can support charities with confidence. Through regular events, the Charities Engagement Team supports trustees and charity leaders to manage their charities effectively.

Currently, all courses for January and February are fully booked. You can check on the Charities Engagement Teams website for the new year schedule.

Charity no. 1072733 Registered address: Association of Church Accountants and Treasurers, C/O KM Accountants, 1st Floor, Block C, The Wharf, Manchester Road, Burnley, BB11 1JG.