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Treasurers’ Day 19 September 2014 Diocesan Budget Process.

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Presentation on theme: "Treasurers’ Day 19 September 2014 Diocesan Budget Process."— Presentation transcript:

1 Treasurers’ Day 19 September 2014 Diocesan Budget Process

2 Late Jan-14Letters to Churchwardens, copy Incumbents/PIC, re Common Fund - includes Survey Form request for Parish Membership and Socio-Economic Category Feb/Apr-14Parishes assess their membership and agree a category Apr-14Parishes return signed Survey Forms to Diocesan Office, FAO Survey Return Officer May/Jun 14Archdeacons convene Archdeaconry scrutiny review groups Jun-14Old Deanery departmental Budget compilations and review of income/expenditure Jun-14Headcount review - clergy deployment / central staff Jun-14Central Accounts Review of Other Income streams Jul-14 Budget Committee of Finance Group meets to review departmental budgets and income streams. Proposed Common Fund increase set Jul-14Review and Approval by Finance Group Sep-14Parish Share calculated in financial model (provisional) Sep-14Review and Approval by Bishop's Council (24 th Sep) Oct-14Parishes able to receive a 'steer' as to the likely Parish Share for 2015 Mid Oct-14Review and Approval by Diocesan Synod (18 th Oct) Late Oct-14Parish Share calculated in financial model (final) Early Nov-14 Letters to Treasurers (copy Churchwardens and Incumbents / PIC) re Common Fund and Parish Share increases Dec-14Parishes finally set and agree their budgets for 2015 including required Parish Share. DIOCESAN BUDGET PROCESS – 2014 for 2015

3 Treasurers’ Day 19 September DBF BUDGET

4 2014 Budget - Income versus Expenditure £11,680,673

5 2014 Budget – Reasons for Breaking Even 7 years of deficits (total £5m), 2006 to was first break-even budget since 2005 Cash flow pressures and issues Deficits distort the true financial picture Cost of borrowing – internally and externally Makes for easier future financial planning

6 DBF OPERATING DEFICIT HISTORY

7 FINANCE TASKS Collecting Parish Share – 99% aim for 2014 Meeting the break-even operating position Managing and growing the asset base Keeping the cash flowing in and out, evenly Maintaining the property portfolio (£55m) Managing the investments (£35m) Paying 200 stipendiary clergy / 50 employees

8 £ A2012A 2013B2014B Change on 2013 Common Fund 8,9839,0169,3089, % Discounts (50)(48)(50)(32) -36% Parish Share Shortfall (212)(170)(93)*(95)* 1.9% Investment Income 9841,1181,1581, % Parochial Fees % Other Income % From Reserves/Provision % TOTAL 11,27011,24111,61411, % * Assumed 1% Parish Share shortfall i.e. budgeted 99% collection rate Common Fund = Sum of all Parish Shares across Diocese DBF INCOME

9 DBF EXPENDITURE £ A2012A 2013B2014B Change on 2013 Parochial Ministry: Stipends 6,7586,8897,0387, % Parochial Ministry: Housing 1,0331, , % Mission, Ministry, Education, Stewardship, Safeguarding and Communications 1,2341,1901,3211, % National Church & Ordinands Support % Administration: Secretariat, Property, Finance and HR % Fund for Church Growth (incl. ALMs) % Legal, DAC, IT, Old Deanery, Other % Lay DB past service pension deficit % TOTAL 11,270 11,24111,61411, %

10 Comparisons: Common Fund, Membership Common Fund increase0.0% 3.7%1.9% Actual Survey Membership24,43523,95023,07122,620 Average like-with-like three year Membership Reduction % % % % Adjusted Average Increase per Church Member 3.1%2.7%7.9%6.8% Over 4 years, a Common Fund increase of just under 6% compares with CPI/RPI increases of 13% to 16% but an average increase per church member of ~ 20%.

11 Membership and Mission “ B&W diocese needs to grow in numbers, in confidence, in prayer and in spirituality. Dioceses vary in levels of growth, London and Liverpool are growing, B&W however has lost 11% of its membership in 10 years and 8% over the last 5 years; it is ranked 34 th out of 42. We need to turn this around.”

12 HOW MUCH DOES A STIPENDIARY PRIEST COST (2014)? Item£Notes Stipend24,813Bath & Wells average stipend for calendar year Pension8, % contribution rate on prior year NMS Social Security2,065Employer’s National Insurance contribution (HMRC rates) Stipend / Pension / Soc Sec35,370 Housing repairs and maintenance, insurance, council tax and water rates 6,504 Total expenditure items noted divided by priest numbers. Removal costs and grants610 Training and support – Ordinands2,316 Training – in service (CMD)290 Retirement housing (CHARM)500 Housing / Removals / Training10,220 TOTAL£45,590 -All the above costs are paid by the diocese, the income coming primarily from Parish Share. -Not included above are the priest’s expenses of office which are paid by the PCC. These will vary from priest to priest according to individual circumstances in conjunction with agreed parish policies. -Also excluded are any subsidised car loans financed through the Church Commissioners. -Key: NMS – National Minimum Stipend; CMD – Continuing Ministerial Development; HMRC – HM Revenue and Customs; CHARM – Church Housing Assistance for the Retired Ministry


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