1. The Diocesan Budget Explained 2016 Supporting the mission and ministry of the Diocese of Rochester www.rochester.anglican.org

2. Each year the Diocesan Synod approves a budget for diocesan expenditure. This includes the cost of deploying our clergy as well as other national and local costs in support of our mission and ministry in our communities. The following slides summarise and explain the 2016 budget for the Diocesan Synod.

3. Drawing up the budget is carried out each year with the involvement of the Bishop’s Council as Directors of the Diocesan Board of Finance, advised by the Finance Committee, Team Directors and senior members of diocesan staff. Each item of expenditure is carefully scrutinised in the light of priorities set by the Bishop and the Bishop’s Council.

4. In 2015 there was a major change in the process. We moved away from a calculation based system of ‘parish share’ and ‘stipend’ to one that is based on an ‘offer system’. Parishes are asked to make an ‘offer’ as to what they are able to contribute to meet diocesan costs, both stipend costs for parish clergy and towards other diocesan support costs. This should be more transparent all round and acknowledges that parish contributions should be made as a free will offering rather than a demand.

5. Budget Summary 2016 Budget 2016Projection 2015 Initial Ministry Training£1,880,800£1,699,300 Parochial Clergy£8,152,900£8,129,700 Other Ministry Support£1,970,000£2,078,500 Total Expenditure£12,003,700£11,907,500 Diocesan Income/Transfers£2,016,200£2,109,800 Parish ‘Offers’£9,430,000£9,200,000 Total Income£11,446,200£11,309,800 Budget Deficit£557,500£597,700

6. 2016 Budget - Income

7. 2016 Budget - Expenditure

8. How will we correct the deficit? Increasing income and reducing expenditure: - Make our assets and investments work harder, increasing investment returns Renting/selling vacant property Reducing clergy numbers by 3 priests per year Ask parishes to contribute more? This may take until 2020 to achieve Other cost savings or increased income will reduce this time frame

9. Forward projections

10. Additional Stewardship? Deficit of £600,000 Assuming church attendances of 20,000 Is ONLY £30/attendee! Or 60p/week! (and less with Gift Aid) How much might you spend on coffees/snacks? £2.50/day? This is not insurmountable

11. Our expenditure explained £1,880,775 - funds the stipends, housing, pensions of 27 curates in training and all other related costs Includes the national and local costs of selecting and training ordinands. These costs will be met by contributions from parishes through the ‘offer’ system although there will be some support available from investments in the Stipends Fund or from other sources.

12. Our expenditure explained £8,118,300 - funds the stipends, housing pensions and training of our 171.7 (fte) deployed clergy and all related costs Contributions from parishes through the ‘offer’ system will cover most of these costs (£6,795,700 – 84%), however, £905,700 (11%) is funded from investment income as targeted support for those areas needing financial assistance. £416,900 (5%) is funded from other sources.

13. Our expenditure explained The estimated average costs of deploying a full-time minister in our Diocese in 2015 are: * Repairs, improvements, insurance and admin, etc, are paid for by the DBF; other costs such as council tax and water rates are paid for by PCCs Stipend£25,965 National Insurance£2,075 Pension£9,265 Housing*£7,000 Training, Grants & Admin£2,195 Oversight£1,500 Total£48,000

14. Our expenditure explained £492,300 - funds our teams which give support, advice and training for local mission and ministry This covers such things as: Training and development for lay ministries Support for youth and children’s work* Training and support in evangelism, church growth and community engagement * Our work with church schools is almost completely funded from educational trust income through the Diocesan Board of Education.

15. Our expenditure explained £1,136,500 -funds all our other diocesan resourcing and support which, among other things, includes: The DAC The Chancellor, Registrar and other legal advice providers Stewardship Statutory diocesan bodies and trusteeship roles Communications and IT Safeguarding and HR Project management Accounts and committee administration

16. Our expenditure explained £341,100 - funds our contribution to the national church This covers such things as the work of General Synod, the Archbishops’ Council and the House of Bishops, and includes: The Mission and Public Affairs Division relating the Christian faith to issues of national concern The Ministry Division overseeing ministerial training and development at national level The Cathedral and Church Buildings team seeking to influence national policy and encourage creative use of our buildings

17. An overview Population1.28MBishops 2* Area542sq milesCathedral Clergy 3* Parishes219Archdeacons3 Churches264Stipendiary clergy194.5 (fte) Ministry Houses225Self-supporting clergy44 Electoral Roll25,000Licensed Chaplains28 Average Adult Weekly Attendance 20,900Licensed/authorised lay ministers 700 approx Total Parish Income£25.0M (est)Clergy in diocesan roles 9.1 (fte) Church Primary Schools 83Lay people in diocesan roles 30.7 (fte) Church Secondary Schools 6 fte = full time equivalent Posts marked * paid for by Church Commissioners

18. We are pilgrims on a journey, and companions on the road; we are here to help each other walk the mile and bear the load.