change in fiscal year end

change in fiscal year end

The elders have recently decided to change the fiscal year of Hope Church Mississauga (HCM) from a calendar year (Jan.1 to Dec.31) to a ministry year (Sept.1 - Aug.31). The following reasons reflect why we believe this is a wise change for the church:

 

Reasons for change in fiscal year from December 31 to August 31

 

  • HCM's Ministry year is planned from September to July/August. Having our financial year to match our ministry year will bring our planning and budgeting processes in sync with each other. This should make our budgeting more accurate.
  • Moving our largest giving month (December) away from being the last month of the fiscal year will ease the uncertainty of how the fiscal year will end. It also gives time (eight months) for adjustments to the budget (up or down) based on the generosity of the largest giving month of the year.
  • January to March is already quite busy within the finance team without considering the financial year-end and its corresponding audit. The calendar year-end is already busy with donation receipting, T4’s, HST reporting, CRA reporting, and EHT reporting. To move the fiscal year-end away from the calendar year-end will spread out some of this demand and create capacity within the Finance Team to be able to focus on these other calendar year priorities.
  • It unifies the receiving and distribution of our Christmas Offering in the same fiscal year. Before this change to HCM's fiscal year-end, the Christmas Offering is received in one fiscal year and then spent in the following fiscal year. However, changing the fiscal year from September to August will allow the receiving of a Christmas Offering and the distributing of it to happen in the same fiscal year which will simplify the accounting.

 

Because we have this transition year without our largest giving month of December the weekly need/budget will be adjusted taking into account the new eight-month fiscal year.

 

To facilitate this change in fiscal year-end, Hope Church Mississauga will have a shorter eight-month fiscal year from January - August 2020. This will be known as our “transition year”.