Great Plains Conference Local Church Report to the Annual Conference (Statistical Report) FREQUENTLY ASKED QUESTIONS

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1 Great Plains Conference Local Church Report to the Annual Conference (Statistical Report) FREQUENTLY ASKED QUESTIONS CATEGORIES A. General Questions B. Membership C. Health Insurance D. Benevolent Giving E. Endowments and Foundations F. Scholarships G. Sunday School, Youth Groups, UMW, UMM H. Day Care and Pre-schools I. Fund Raisers J. Multi-point charges K. Property Income and Expenses, Insurance Money L. Memorials M. Table III Questions A. General Questions Locate information to answer many of your questions about which line to use or what to enter on a particular line on the GCFA Stats Data Entry website in the Church Table Directions report or by clicking on the question mark (?) at the end of each numbered line on the Table entry screens. 1. Q: I cannot enter amounts in some of the lines in Table II. They state amounts will be provided by the conference treasurer? A: These lines report church giving paid and sent to the conference treasurer i.e. Mission Share, Mission Agency Support, General Advance and Special Sundays. Because remittances received by the conference treasurer on or before January 8, 2016 are credited to 2015, the information for those lines cannot be filled in until after those remittances are processed and verified by the conference office. These lines will be filled in as early in January as possible. 2. Q: Why can t I enter any information in the Explanation area when a Warning box appears asking for information? A: There are some compatibility issues with the Ezra software if you are using Internet Explorer 10. You may need to switch to another browser or use the following link to install the compatibility view for Internet Explorer Q: What happens if our church does not submit its report by the deadline? A: When calculating the church s Mission Share, 10% shall be added to the prior year s Table III Line 62, Total income for annual budget/spending plan. This is per our conference rule for missing reports (see Great Plains Conference Plan of Organization). 4. Q: Will our 2015 statistical reports affect our 2016 Mission Share calculations? A: No. The data you report for 2015 will be used to calculate your 2017 Mission Share. 5. Q: If our pastor is classified as a District Superintendent Assignment, where do we report his/her salary, payroll taxes and reimbursements? A: Line 55 on Table II. B. Membership 6. Q: The amount reported in Table I Line 1, professing members at the close of last year is wrong but I cannot change it. How do I correct this number? A: The amount in this line cannot be changed. You must adjust it by entering information in either Line 2.c (increase) or Line 5.c. (decrease). Page 1 of 7

2 C. Health Insurance 7. Q: Where do we report the health insurance allowance paid to the pastor? A: Report this amount in Line 52 along with any other Cash Allowances, i.e. undocumented payments for travel, continuing education. 8. Q: Our church has more than 50 full-time employees and is required to provide a group health insurance plan. Where do we report health insurance payments sent to our insurance provider? A: For clergy, include on Table II Line 52. For lay employees, include on Table II Line 55. D. Benevolent Giving 9. Q: Our church gives money to a United Methodist ministry in another state. How do I find out if it is a General Church Advance? A: Check the General Board of Global Ministries website to determine whether or not a benevolent contribution is a General Church Advance. Search at Mission/Search-for-Projects. The key points to remember are that benevolent giving is recorded as follows: Amounts sent to the Annual Conference Treasurer you will not report. These numbers will be provided by the conference treasurer. Amounts paid directly by the church to United Methodist or non-united Methodist causes report as follows: General Church Advance. World Service Specials Conference Advance, and Other United Methodist causes Table II Line 43 Non-United Methodist causes Table II Line 44 It is recommended that the treasurer or bookkeeper create a separate chart of accounts line for each of these different types of mission giving in order to make reporting easier at year-end. 10. Q: Is all benevolent giving within Kansas and Nebraska considered a Conference Advance? A: No. Only those listed on the Great Plains United Methodist Conference website are considered a Conference Advance. A list of the Conference Advances can be found at E. Endowments and Foundations 11. Q: How do we report earnings from our church s endowment fund? A: Report unspent earnings on Line 32 of the Table II form. Report spent earnings on the appropriate Line of Table II. For example, endowment funds spent on church renovations would be reported on Line 59. Also report the current year earnings on line 62.d of Table III if it is designated/used for operating or benevolence budget. Report on line 63.b if designated/used for capital improvements or other special projects. 12. Q: Should unspent earnings and expenditures be reported even if the endowment is separately incorporated or has a separate checking account? A: Yes. F. Scholarships 13. Q: How do we report scholarships that we make payable to an individual? A: Report on Table II Line 56, Program Expense. 14. Q: Why do we not report scholarships as benevolent giving on Line 44? A: Line 44 is used to report benevolent giving to organizations, not individuals. A Scholarship award is for a particular individual and therefore considered a program of the church and should be reported on Line 56. Page 2 of 7

3 15. Q: How do we report scholarship money made payable to a college or university on behalf of a student? A: Report those amounts on Table II Line 56. They are for the benefit of a specific individual. 16. Q: Do we report scholarships paid from an endowment fund? A: Yes. Report on Table II Line 56, Program Expenses. G. Sunday School - Youth Groups UMYF - UMW - UMM 17. Q: Are we to report information on UMW and UMM spending on all three statistical tables? A: It depends. All spending on projects or programs should be reported on Table I. This gives an overall picture of the group s activities. If money is given to the church for support of the general budget or benevolence budget, it should also be reported on the appropriate lines of Table II and Table III. 18. Q: Our UMW paid for a new dishwasher for the church kitchen. Do we report that on Table I Line 26.b? A: Yes, and also on Table II Line 59 and on Table III Line 62.g. 19. Q: Our UMW pays all of the utilities for the church. Should the amount they pay go on Table I Line 26.b or does it go on Table II Line 57? A: It depends on which organization actually pays the utility company. If the UMW issues the payment to the utility company, include the amount on Table 1 Line 26.b only. If the UMW gives the money to the church to pay the utility company, include the amount on Table I Line 26.b and Table III Line 62.b to report the UMW spending and the receipt of the payment by the church. In addition, include the amount on Table II Line Q: Where do we report UMW money sent to our district UMW (or conference UMW) treasurer? A: This information is no longer collected on the Local Church Report to the Annual Conference. 21. Q: Our church is raising funds to renovate the sanctuary. Our UMM had a fundraiser and gave the proceeds to the sanctuary renovation fund. Work on the renovation is not scheduled to begin until next summer. How should this UMM expense be reported? A: Report as a UMM project on Table I Line 25.b. The amount will also be reported on Table III Line 63.a as income for a capital campaign or special project. The total amount in the building fund will be reported on Table II Line 32. When funds are spent on the renovation, the expense will be reported on Table II Line Q: Our UMW had a fundraiser and sent the proceeds to a thrift store that is supported by various churches in our area. The thrift shop not listed in the Journal as a Conference Advance. Where do we report this amount? A: Report on Table I Line 26.b only. 23. Q: UMM sent money to Mt. Sequoyah, which is a General Advance. Where do we report this amount? A: Report on Table I Line 25.b only. 24. Q: Our UMYF had a fundraiser and sent the money to a local food bank that is not United Methodist. Where do we report this amount? A: Report the money raised on Table III Line 63.d. Also, report the amount sent to the local food bank on Table II Line Q: Is this where UMYF would report money sent to United Methodist Open Door or Western Kansas Mexican-American Ministries? A: Report the money sent on Table II Line 43 (both these organizations are United Methodist causes) AND on Table III Line 63.d. 26. Q: We have separate checking accounts for our Sunday school classes, UMYF and other youth groups, etc. Should we report what these groups spend from funds they raise? A: Yes. Report the expenditures of all these groups on the appropriate lines of Table II and Table III. For example, monies received by a Sunday school class to purchase Sunday school Page 3 of 7

4 materials would be reported on Table II Line 56 and Table III Line 62.g if this is included in the annual budget/spending plan, otherwise include in Table III Line 63.d. H. Day Care and Pre-schools 27. Q: Our church operates a day care center as a program of the church. Must all expenses of operating the day care be included on Table II Line 56 (program expense)? A: No. You should report as a program expense (Line 56) only the amount that was not covered by fees that may be charged to the users. In other words, report the amount of support that was provided by the church budget. I. Fund Raisers 28. Q: Our church holds an annual bazaar where much of the goods are donated. We use the money to support one of our local mission projects. It is not a Conference Advance. The money is sent directly to the mission. How do we report this giving? A: Report on Line 44 of Table II and on Table III Line 62.g if this is included in the annual budget/spending plan, otherwise include in Table III Line 63.d. Do not report the cost to purchase goods, only the amount that was made as a result of selling the items. For donated goods, the amount reported would the entire sale price. For goods that are purchased, the amount reported would be the difference between the price the item sold for and the price the church paid to purchase it. 29. Q: Our church has several fund raising projects. We sell grocery store certificates and entertainment coupon books. We purchase the store certificates and entertainment books at a discount and then sell them. We use the proceeds for various missions as well as needs within the church. How do we report this? A: You report only the amount that you spend from the funds that are raised. In other words, you do not report the entire expense of purchasing the store certificates or entertainment books. Of the net amount raised (difference between cost of product and what you sold it for), you would report on Table II the amounts you spent. Any unspent proceeds would be reported on Line 32 of Table II. Also report the net amount raised on Table III Line 62.g. 30. Q: We hold various dinners. Some of the food is donated and some is bought. Should we report the expenditure of money raised by the donated food? A: Yes. The same principle would apply as in the situations presented in the previous two questions above. J. Multi-point charges 31. Q: Our church is part of a multi-point charge. The pastor lives in the parsonage owned by the other church. We pay a monthly amount to the other church to assist with their parsonage maintenance expenses. How do we report this expense? A: Include on Table II Line Q: How are shared expenses to be reported when a church is a part of a multi-point charge and money is given from one church to another to help cover such shared expenses? A: Any church that pays money to another church in a charge to assist with a shared expense should show those expenses in the appropriate lines in Table II based on how the money is used. The church receiving those funds should not show that money as income (it s already been counted as income once in the church that provided it). And, when it comes to reporting expenses the receiving church should report only that portion of the expense that their own church has provided. This applies whether the money is for pastoral compensation, office expenses, or housing provided to a pastor. Each church reports only its own portion of the shared expenses. K. Property Income and Expenses, Insurance Money Page 4 of 7

5 Note the additional instructions for Table II Line 31 (click on? at the end of that line on the Table Entry screen) regarding reporting of market value of parsonage-related assets owned by a multichurch charge. 33. Q: We sold our church-owned parsonage and will use the income from the sale to purchase a new parsonage in next year. How should we report this sale? A: Reduce the market-value reported on Table II Line 31 by the market value amount of the parsonage building and land reported in previous years and include the income amount on Table II Line 32. Also report the income from the sale on Table III Line 63.c. 34. Q: Our current pastor is not living in the church-owned parsonage. We are renting it to a local family. Where should we report the market value of this residence? A: The value of a residence not used as a parsonage should be included on Table II Line Q: We have rental property that provides us with income. Are we supposed to report how we spend that income? A: Yes. Report the expense on the appropriate line on Table II. For example, if the rental income is used to pay for repairs to the church parsonage, report the expenses on Table II Line 57. If the rental income is used to pay the pastor s housing allowance, report the expense on Table II Line 50. Also report the income on Table III Line 62.f if used for operating budget or benevolent budget. Report on Table III Line 63.b if used for a capital expense or other special project. 36. Q: We had to unexpectedly replace our furnace and received a special donation to cover this expense. Where should we report this donation? A: Because this was an expense not included in the annual budget/spending plan, report the donation on Table III Line 63.c. Include the expense on Table II Line Q: Our church had storm damage to the church roof. Insurance covered all costs except the deductible. Do we report the entire cost of the roof replacement? A: No. Only report the amount that was not covered by insurance money. 38. Q: Do we have to report insurance money that has not yet been spent? A: No. L. Memorials 39. Q: How do we report Memorials given to our church? A: Report unspent memorial funds on Table II Line 32, Market Value of other assets. Receipts from memorials should be reported on Table III Line 63.b. 40. Q: How do we report memorial funds spent? A: Report any expenditure from the Memorial Funds on the line on Table II that reflects how the money was spent. For example, funds used to purchase equipment for the church would be reported on Table II Line 59, Paid on buildings and improvements. 41. Q: Do we report these expenses if the memorial money is kept in a separate account? A: Yes. M. Table III 42. Q: Does operating income include our collections to fund our apportionment payments to the Conference? A: Yes. Report collections to fund apportionment payments to the Conference in Lines 62.a-62.c. 43. Q: Where should we report special collections outside of the apportionments, such as World Communion? A: Special collection for any benevolent cause outside the operating budget would be included in Line 63.d. Page 5 of 7

6 44. Q: What about benevolence giving that we retain at the church level dedicated to our special programs such as Emergency Assistance? A: It depends upon whether there is a line in your operating budget for this purpose and all gifts to the operating budget are used in part for this purpose. If it is part of the operating budget, the income for this purpose is reported on Line 62 (a, b, or c). If special offerings are received for this purpose separate from the operating budget then gifts for this purpose are reported in line 63.d. 45. Q: What should be reported on Table III Line 62.e, Amount received from Sale of Church Assets? A: Only report sale income that is used for the annual budget/spending plan. Report sale income held for future use or special projects on Line 63.c. of Table III. DO NOT report the income from the sale of any real property on which a church building or parsonage is located on Line 62.e. Per the Discipline the principal proceeds of the sale of any such property shall not be used for the operating budget. Report this income on Line 63.c. Also, be sure to reduce the market-value reported on Table II Line 31 by the market value amount of the real property reported in previous years and include the income amount on Table II Line Q: Where should we report investment earnings not used to support the annual church budget? A: Report this year s earnings from these investments in Line 63.b. 47. Q: Because our giving receipts were down this year we had to withdraw money from a memorial savings account and a trustees reserve account to support the annual budget. Should we report these funds as income in Line 62? A: This money is not new income in the current year. Rather, it is money received and invested in prior years. Do not report this amount in Table III. 48. Q: We need to classify between pledging, non-pledging but identified, and unidentified givers for operating income. Is this right? A: That is correct. A gift outside of the pledge campaign system and not identified as a directed benevolent gift should be designated as a donation from an identified giver and reported on 62.b. If it comes from an unidentified giver then report on 62.c. 49. Q: I m not sure if we have tracked all giving by pledged, non-pledging but identified and unidentified giver categories. How much time (i.e. accuracy) do you anticipate if these records have not been kept this way? A: If your church is not prepared to report revenue by the various categories listed, give it your best shot and then start preparing the records keeping system to track this information. Most churches have some mechanism of tracking member giving. There is probably a list of persons that pledged, so one could create a report of dollars received from pledging members and from non-pledging members. Some smaller churches do not have pledge campaigns, in which case they would not use Line 62.a, but they would have a figure for Line 62 b. 50. Q: It appears the definition of a pledged receipt would include amounts over and above the giver s written commitment. For example, a pledging giver has committed to $2,000 and gives $2,200. The extra $200 should be classified as a pledged receipt on Line 62.a. Is this correct? A: Yes, report it on Line 62.a for two reasons They are pledging givers and for analysis purposes all their offerings for the operating budget should be identified as such (this has benefit in the local churches long range planning and budgeting). Never make things more difficult than necessary. Separating out monies over and above pledged amounts isn t easy with most databases. In general terms, fill out this form based upon the best information you have. 51. Q: How do I know if income for a capital project should be reported as operating income or income from a capital campaign? A: If a project is paid for out of budget money set aside for building repairs then the money received for that purpose should be reported as operating income, Line 62a-g. If, however, the church did not have money in the budget for this and had to raise additional funds from Page 6 of 7

7 members of the congregation to pay for it, then the income should be reported as capital campaign income (even if no formal capital campaign was conducted), Line 63.a. Page 7 of 7

CHURCH ASSETS & EXPENSES WORKSHEET

Table 2 of the Local Church Report to the Annual Conference CHURCH ASSETS & EXPENSES WORKSHEET The General Council on Finance and Administration of The United Methodist Church 2013-2016 Quadrennium Revised