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FINANCIAL CONSULTATIONS

2013

Registration and

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Welcome

Domestic Arrangements

Opening Prayers

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Local finances – risks v opportunities – in a

national context

Brian NeweyChairman, ODBF

Discussion groups

Questions, comments and discussion

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Balancing the diocesan budget

Rosemary PearceDiocesan Secretary

Church of England Worshippers

• 2007 1.2 million

• 2030 0.5 million

Living Faith

• Sustaining the Sacred Centre–It nurtures & cares for its

members spiritually & pastorally

• Making Disciples–It will grow in number and depth

Living Faith

• Making a difference in the world–It looks outwards and serves

the needs of the local community – it is a prophetic and countercultural voice for justice in society

Living Faith

• Creating vibrant Christian Communities–Which includes a diversity of people of all ages

Living Faith

• Shaping confident collaborative Leadership–The focus for 2014; men and women, clergy and lay people, working together

Future work

• Core Work

• New areas of work

• Strategic Development

Strategic Development• Refocusing of departmental activity

to support Deanery Mission Action planning.

• Reshaping training approaches for the development of lay discipleship

Strategic Development

• Encouragement and facilitation of Mission Action Planning in parishes

• The development of a comprehensive approach to enhancing involvement with young adults – teens and twenties

Strategic Development

• Support for and resourcing of Collective worship in schools – for staff, clergy and church members who lead or assist in leading worship in schools.

• Engagement with new Communities – including the support and provision of new churches

Strategic Development

• Providing clergy, LLM and lay conferences which help to shape confident, collaborative leadership

• Maximising new technology and the intelligent use of data

Mission through MinistryBudget Item

£k Description Objectives & Outcomes for 2014

Pay costs

381 Staff costs Bishop Council Priority number 8“To implement appropriate processes of discernment for all people exploring ordinated and licensed ministry enabling 40 people to attend BAP and 20 to attend LLM selection conferences during the year”

Mission through MinistryAim Activity Person(s)

responsibleTime line

FTE Budget Results expected

Discernment

Enable national selection of people judged by diocese to be called to ordained ministry

45 candidates sent to BAP, CP, RDP, PP C4 Faculties, CRB Queries

JCB, DH, CW, RO, AP, SF

On-going

0.8 £2,400 Candidates progress to appropriate training

Central Services Review Criteria

• How does this work help to grow the Church in such a way that the Church can grow the Kingdom?

• Is it a legal requirement?

• Is it the most efficient way of achieving the objective?

Central Services Review Criteria

• If we didn’t do it would someone else pick up or finance the work?

• Should this work be undertaken centrally or locally?

Increased Income• Building Services to Schools up from

£142k to £193k• Rental of Parsonages during

vacancies up £50k to £475k• PV Panels £90K• Energy Audit Grants for Churches

£20K

No inflationary increase for four years

Saving £300,000

September forecast 2013

£260,000 improvement

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£50K removed totally in 2013

a further £50K in 2014

Feedback, questions and comments

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Budget 2014 and beyond

Michael Hardman Vice Chair

Nigel Wearne Director of Finance

Amersham

2014 Budget Assumptions

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Key assumptions budget budget2013 2014

Stipend & salary increase from 1 April 2% 2%Other diocesan cost increase 0% 0%Diocesan average share increase 2% 1%Share under collection rate 3.12% 3%

Stipendiary clergy and layworker posts 328.7 327.7Curates in training - expected average 55 57Clergy vacancies - expected average 20.5 20.5

Banbury

2014 Budget Overview

Budget2013

£’000

Budget2014£’000

Direct ministry costs 14,755 14,727

Church of the Future 3,595 3,719

Support costs – National Church 985 979

Support costs – Diocesan 3,686 3,635

Glebe and Fees income (4,182) (4,284)

Parish Share (19,045) (19,235)

Budget surplus to rebuild reserves 206 459

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Bicester

Direct Ministry costs

Budget2013

£’000

Budget2014£’000

Stipends 8,097 8,063

Employers National Insurance 684 645

Pension 2,779 2,783

Subtotal 11,560 11,491

Cost of providing housing 3,195 3,236

Total direct ministry costs 14,755 14,727

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Chipping Norton

Church of the Future

Budget2013

£’000

Budget2014£’000

Pre-ordination grants 372 365

Ordination and first appointment grants

111 83

Direct costs of curates in training 1,898 1,983

Diocesan training costs 450 467

National Church training for ministry 764 821

Total 3,595 3,719

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Milton Keynes

Support costs – National Church

National Church costsBudget

2013 £’000

Budget2014£’000

National Church responsibilities 637 612

Grants and provisions 75 76

Mission agencies clergy pensions 32 46

CHARM (Church’s housing assistance for the retired clergy)

241 245

Total 985 979

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Newport Pagnell

Support costs – Diocesan

Diocesan costsBudget

2013 £’000

Budget2014£’000

Parochial ministry support 1,230 1,165

Mission of the Diocese 1,758 1,786

Compliance and governance 708 710

Share rebates 411 415

Share under collection 594 577

Vacancies (709) (719)

Trust and other investment income (306) (299)

Total 3,686 3,635

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Oxford

Parochial Ministry support costs – more details

Parochial ministry supportBudget

2013 £’000

Budget2014£’000

Bishops and Archdeacons costs less central church support

469 510

Clergy removal costs 104 98

Grants – clergy & parish building 206 191

Clergy HR, service in sickness & vacancies & other clergy costs

451 366

Total 1,230 1,165

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Slough

Mission of the Diocese costs – more details

Mission of the DioceseBudget

2013 £’000

Budget2014£’000

Mission team – Making Disciples 410 415

Mission in the World 143 143

Board of Education grant 235 239

Grants – ecumenical, PACT and others 268 270

Communications 260 234

All other mission activities 442 485

Total 1,758 1,786

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And the 2014

Share Allocation Scheme Nigel Wearne Director of Finance

Share Allocation Scheme 2014

We aimed to improve• Simplicity• Transparency• Fairness• Mutual support clarity• Sensitivity to parochial ministry cost changes• Equity between deaneries and parishes

But still focused on Christian generosity and discipleship

Share Allocation Scheme 2014

A few of the new features:• Layout and description of the budget• Direct costs of ministry• Revision of clergy numbers as at 1 September• Better measure of relative wealth between

deaneries & parishes

Share Allocation Scheme 2014

3 part share scheme: • £14.7M Direct ministry costs of stipendiary clergy

and House for Duty posts• £3.7M Church of the Future – all national and

diocesan clergy training costs• £4.6M Support costs – national and diocesan

Share Allocation Scheme 2014

Allowances:• Credit for wedding and funeral fees• Use of glebe income ….for• Urban deprivation allowances• Rural relief• Deaneries that do not receive these two

allowances are supporting those that do by a total of £1.2M

• Use of the balance of the glebe

Share Allocation Scheme 2014

Some deaneries are adopting the diocese to deanery allocation method

Some deaneries are not!

Many deaneries allocate to benefice and then to parishes

Some deaneries are better at allocating than others!

Communication across parishes is key

Questions and discussion

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Parish Buying Scheme

Russell Stables

C of E Procurement Officer

Reflections and Conclusions

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Prayers and Close

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LUNCH to 1pm

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Treasurer updates

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Gift Aid and Parish Accounts software

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Parish Finances

Becky MorrisFinancial Controller & Parish Treasurer

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Responsibilities – role of the Treasurer

• Implement PCC financial decisions • Book keeping and proper records• Budget setting, monitoring and financial

reporting to the PCC• Meet financial obligations, make

payments• Annual accounts and statutory

reporting• Safeguard income

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Budgeting and monitoring

• Why are budgets needed?• Budget setting – how?• How to engage the PCC?• Monitoring and follow up

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Meeting financial obligations and making payments

• Managing bank accounts• Online banking?• Parish share by standing order?• Clergy expenses – where to find

guidance

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Safeguarding income and related issues

• Cash handling• Encouraging regular giving• Gift aid – update

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Problem areas: Fund accounting• Unrestricted funds = for general use

• Designated funds = set aside by the PCC for a specific purpose, PCC can change the use later or revert these to unrestricted

• Restricted funds = given by the donor for a specific purpose, can only be spent on this

• Endowment funds = given for long term, usually only the income generated by the fund can be spent

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Questions and discussion

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Financial Reporting

Nigel WearneDirector of Finance

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Financial Reporting – legal framework?

• Charities Act 2011 & Charity SORP

• C of E legal framework: o PCC Powers Measure 1956o the Church Representation Rules and o (the Church Accounting Regulations 2006)

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What reports do you have to produce?

Receipts and Payments Accounts:(If gross income £250K or less)

1. Trustees’ Annual Report2. Receipts and Payment Account3. Statement of Assets and Liabilities4. Independent Examiner’s report

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Trustees Annual Report - content

• Administrative information• Structure, governance and management• Aims and Purposes• Objectives and Activities• Achievements and Performance• Financial Review• Reserves Policy• Plans for future

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Independent Examination

• Required by the Church Accounting Regulations and the Charities Act

• Appointed by APCM• No connection with the PCC, can be a church

member• Thresholds

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Statistics for Mission

• Finance returns• Membership returns• Electronic v paper• New forms and introduction of Central Church

web collection system• Link to new share scheme• New time frame set by Central Church

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Where to find out more?

• Parish resources websitewww.parishresources.org.uk• Association of Church Accountants &

Treasurers – Deanery Group can join for £6.50 a head. Good value.

http://www.acat.uk.com/PCC Accountability: The Charities Act 2011 and the PCC: book from Church House Publishing or Amazon

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Questions and discussion

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