1. Finance Consultations
David Tomkins
Chair, Diocesan Board of Finance

2. Church Members
Parishes
Dioceses
Church Commissioners

3. Church Commissioners Late 80s/early 90s – over-distribution
Cuts in expenditure
£66m 1991; £20m 1997
Cap liabilities
New pensions scheme from 1998
Funded by parishes
Cost to dioceses – £35m
Transitional relief up to 2003

4. The big squeeze

5. The Liverpool approach
Strategy 1998 – 2003
Sheffield share of stipendiary clergy
Cushion parishes from pensions hit
Quotas – RPI + 3%
Diocesan deficits of £300,000 a year

6. Increasing parish share - %
1998
1999
2000
2001
2002
1990
Parishes 54 56 59 64 67 48
Church
Comm. 29 26 24 22 20 40

7. 1999 - 2001 Actual After capital receipts Investments 1999 -£351k
2000
-£321k
£208k
-£870k
2001
-£500k + ? ?

8. Forward to 2002 Income £7,121k Parishes £4,774k 67% CC Core 1,099k
Temp
£352k
20%
Expend
£7,542k
Stipends
£4,361k
58%
Pensions
£1,088k
14%
Housing
£605k 8%
Centre
£432k 6%
Deficit
£421k

9. 2002 assumptions
Stipend increase 3% (RPI +0.5%, not 1% as in strategy)
Quota increase of 7% (RPI + 4.5%, not 3% as in strategy)
Diocesan Synod yet to approve 2002 budget – seen as holding year

10. 2003 and beyond No action means numbers get out of control
2002 deficit 421k (underlying £773k)
Could reach £600k (underlying £950k)
Further costs could take it over £1 million

11. The £1 million deficit Total turnover - £7-8 million
Quota increase of 21%, if it all comes from that source
Reduction in clergy numbers by 40, if it all comes from that source
Boards and Church House in total only equal half the amount
Will have to be a combination

12. Our task What is our mission? What is God saying to us?
Renewed vision …
Appropriate priorities & structures …
Financial framework …
To grow and continue to advance God’s kingdom