There is a change underway at the Central Finance Board in how we support the CFB Deposit Fund as we seek to modernise our service and come off legacy systems. We have already been in communication with Treasurers about the move of some support services to an external supplier, and I will be writing again in the Autumn to remind Treasurers of further changes that are coming to the CFB Deposit Fund.

I am grateful to the Connexional Secretary for giving me this opportunity to reach out to you to provide this information. My email and contact number are at the foot of this letter. Please do not hesitate to reach out to me directly if you would like clarification on any matter. If you should visit Church House, I’d be delighted to join you for a coffee on the ground floor.

Why is the CFB making changes?

The systems that we use to support the CFB Deposit Fund are over 20 years old. Those of you who use the portal into the Deposit Fund will know that it frequently falls over. More often than not, this is caused by the incompatibility of the old software with current upgrades to the platform on which the system or portal sit.

We have also become concerned about the prospect of an “end of life” for these systems as the number of other users on them dwindles. We do not want to be in a position where we are given notice that the software is being shut down, and we have to rush to find a new solution.

The problem with our old systems was illustrated at the end of the 2024/25 financial year. The last week of August is a hectic time for us as we work to support the Methodist year-end. Unfortunately, this year, a file to update the transfers between CFB Deposit fund accounts was corrupted, meaning that incorrect data was posted to individual deposit fund records. For 24 hours Treasurers were seeing incorrect balance information; obviously causing great concern to them. To avoid further confusion, we took the portal down, and it took us a week of working with the supplier to fix the issue. I am relieved to report that all Deposit Fund balances and postings are now correct, but this incident illustrated the urgency to get off these old systems.

What are the changes?

The CFB Deposit Fund is constituted under the Methodist Church Funds Act 1960 and is only available to Methodist Churches and Charities in Great Britain and the Isles. This does not change. The Fund continues to be managed by our investment team located in Methodist Church House, delivering an interest rate that is highly competitive for an instant access deposit fund. However, we are no longer undertaking some of the operational support for the Fund. We have asked a large European bank, CACEIS, to undertake the fund accounting and JTC, a company quoted on London’s main stock market, to maintain the investor records and provide initial investor support. Where JTC are unable to deal speedily and satisfactorily with a Treasurer’s enquiry, our client team in Church House, under Sarah Bourgein, will provide a point of escalation.

Our old portal has been replaced by a new system that is supplied by JTC. This portal is branded with the CFB’s name and colours. This portal will enable Treasurers to download statements and their account transaction history. Deposits and Withdrawals can also be instructed through the portal.

Deposit Fund account holders will need to set themselves up with JTC for their new portal access. JTC have written to all account holders with details on how to do this and there is a message with further details on our website. Old account numbers will still be needed for historic access to the Deposit fund records before 1 September 2025, which will remain with our team.

In the past we have accepted instructions to undertake a transaction on a future date. We had a manual system for applying these, and I cannot claim that it always worked! In our new system, we will only be able to accept instructions for the current business day.

The cut-off date for instructions to receive same-day value has previously been 10:30 AM. This is moving back 30 minutes to 10:00 AM. For a deposit to receive same-day value, both the instruction and the deposit must be with us by that time.

Future enhancements and changes

We are working with JTC to increase the functionality of the portal in a “second phase” so that inter-account transfers, including standing orders, can be instructed or amended electronically.

We will be phasing out the bank account that we have at HSBC that enables Churches to deposit both cash and cheques into the Fund via a paying-in book. This is not a secure environment to protect the Church against bad actors who may try to use the CFB Deposit Fund as part of a money laundering exercise. From 1 January 2026, we will only accept deposits into the CFB Deposit fund from the bank account that we hold on record for the Church or Charity.

A final change will come in September 2026 as we begin charging for the processing of cheques. We will detail these charges in future communications. We hope to encourage Churches to adapt to electronic banking and gradually move away from cash and cheque transactions, which are proving harder and harder to support in the modern world. We know this may places new demands on Treasurers, who already face significant challenges in dealing with banks and managing day-to-day finance, and we are committed to walking alongside you as these transitions take place.

Our goal is to modernise the CFB Deposit Fund, thereby enhancing protection against fraudsters and money launderers, and improving online access and functionality. We recognise the considerable pressures that Treasurers are under, not least the challenges of dealing with banks, increasing bank charges, and the sheer responsibility of managing Church funds faithfully. Please be assured that our sole desire in making these changes is to be a good steward of the Church’s resources, supporting you in your vital role and helping you to focus on the ministry and mission to which your Church is called.If you would like further information or want to pass on grumbles and issues, please email or call me.