FINANCIAL CONSULTATIONS 2013 Registration and
description
Transcript of FINANCIAL CONSULTATIONS 2013 Registration and
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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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