1. Saturday 20th May 2017
Financial Statements 2016
Canon Simon Harper

2. Allocation to Strategic Mission Fund
Finance
Result for the year
Highlights
Allocation to Strategic Mission Fund

3. Results - income 2016 2015 Change £m Income Parish Share 4,495 4,417
1.8%
Archbishops‘ Council
1,523
1,539
(1.0%)
Other income
1,301
1,737*
(17.7%)
Total income
7,319
7,693
(4.9%)
* The 2015 figure includes £409k of profit on sale of fixed assets

4. Results: surplus for the year
2016
2015
£’000
Unrestricted funds
General fund 8
357
DBF Houses Fund 79
408
Other unrestricted funds
170
(40)
Total unrestricted funds
257
725
Restricted funds
(138)
(17)
Endowment funds
626
477
Total
745
1,185

5. Results – General fund surplus for the year 2016
£’000
General fund
(7)
Less movement in investment valuations
135
Cash surplus on the general fund
128
The surplus on the general fund reported in the accounts is impacted by a number of accounting items where the cash and accounting are not identical
The “cash” surplus amounted to £128k
This is the balance that would be transferred to the Strategic Mission Fund

6. Finance – key highlights
Parish contributions of £4.496m were received with £3.882m spent directly resourcing parish ministry (86.3%)
Parish share income for fourth year running was in excess of £4m
64.6% of expenditure is on resourcing ministry and mission
We need to build up a ”Fighting Fund” to support our Vision and enable us to access central resources, support and funding

7. Parish Share
8% not collected
92% collection of Parish Share

8. Parish Share Shortfall in Parish Share is approximately £418k
Selective Allocation from Archbishops Council £1,523k
Renewal & Reform programme changes the way in which funds are allocated to our Diocese
As a Synod we agreed a “100%” budget with the aim that this would create a surplus which will be used in future years to invest in initiatives to support our “growing church bringing hope” strategy

9. Parish Share
The 100% budget anticipated transferring £319k into the Strategic Mission Fund
The shortfall on Parish Share has meant that only £120k has been transferred

10. Next steps
We are accelerating the budget process for 2018 to enable earlier indications to Deaneries
The Finance Synod will be held on 24 July 2017
This will provide input into the process to ensure that our spending addresses our strategic priorities
The final budget will be brought back to the Synod in September

11. Positives
Income has exceeded £7m (again)
Parish share receipts increased by 1.8%
The result for the year is a surplus, but underpinned by investment gains
Negatives
Had we collected 100% of parish share the surplus would have been around £418k higher – this £418k would have enhanced the strategic Mission fund to be used in future years
The transfer to the Strategic Mission Fund has only been achieved through investment gains

12. Canon Simon Harper TIME FOR DISCUSSION AND QUESTIONS
Newcastle Diocesan Board of Finance
TIME FOR DISCUSSION AND QUESTIONS
Canon Simon Harper

13. Financial Statements Chairman of the Board of Finance to propose:
“that the Financial Statements for the year ended 31st December 2016 be received.”