Treasurers’ Day 19 September 2014

Diocesan Budget Process

Late Jan-14 Letters to Churchwardens, copy Incumbents/PIC, re Common Fund

  - includes Survey Form request for Parish Membership and Socio-Economic Category

Feb/Apr-14 Parishes assess their membership and agree a category

Apr-14 Parishes return signed Survey Forms to Diocesan Office, FAO Survey Return Officer

May/Jun 14 Archdeacons convene Archdeaconry scrutiny review groups

Jun-14 Old Deanery departmental Budget compilations and review of income/expenditure

Jun-14 Headcount review - clergy deployment / central staff

Jun-14 Central Accounts Review of Other Income streams

Jul-14Budget Committee of Finance Group meets to review departmental budgets and income streams.

  Proposed Common Fund increase set

Jul-14 Review and Approval by Finance Group

Sep-14 Parish Share calculated in financial model (provisional)

Sep-14 Review and Approval by Bishop's Council (24th Sep)

Oct-14 Parishes able to receive a 'steer' as to the likely Parish Share for 2015

Mid Oct-14 Review and Approval by Diocesan Synod (18th Oct)

Late Oct-14 Parish Share calculated in financial model (final)

EarlyNov-14

Letters to Treasurers (copy Churchwardens and Incumbents / PIC) re Common Fund and Parish Share increases

Dec-14 Parishes finally set and agree their budgets for 2015 including required Parish Share.

DIOCESAN BUDGET PROCESS – 2014 for 2015

Treasurers’ Day 19 September 2014

2014 DBF BUDGET

2014 Budget - Income versus Expenditure

Other Sources

Income

PARISHSHARE

National Church

Ministry Support

FCG

Admin Other

Expenditure

PAROCHIALMINISTRY

£11,680,673

2014 Budget – Reasons for Breaking Even

• 7 years of deficits (total £5m), 2006 to 2012

• 2013 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

DBF OPERATING DEFICIT HISTORY

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

£0002011

A 2012

A

2013

B

2014B

Change on 2013

Common Fund 8,983 9,016 9,308 9,485 1.9%

Discounts (50) (48) (50) (32) -36%

Parish Share Shortfall (212) (170) (93)* (95)* 1.9%

Investment Income 984 1,118 1,158 1,205 4.0%

Parochial Fees 576 598 710 750 5.6%

Other Income 378 311 331 327 -1.2%

From Reserves/Provision 611 416 250 40 -84%

TOTAL 11,270 11,241 11,614 11,680 0.6%

* Assumed 1% Parish Share shortfall i.e. budgeted 99% collection rate

Common Fund = Sum of all Parish Shares across Diocese

DBF INCOME

DBF EXPENDITURE

£0002011

A2012

A

2013

B

2014B

Change on 2013

Parochial Ministry: Stipends 6,758 6,889 7,038 7,098 0.9.%

Parochial Ministry: Housing 1,033 1,028 979 1,001 2.2%

Mission, Ministry, Education, Stewardship, Safeguarding and Communications

1,234 1,190 1,321 1,283 -2.8%

National Church & Ordinands Support 880 874 899 921 2.5%

Administration: Secretariat, Property, Finance and HR 553 559 562 573

2.0%

Fund for Church Growth (incl. ALMs) 516 357 458 443 -3.3%

Legal, DAC, IT, Old Deanery, Other 296 296 297 311 4.7%

Lay DB past service pension deficit 0 48 60 50 -17%

TOTAL 11,270

11,24

111,614 11,680 0.6%

Comparisons: Common Fund, Membership

2011 2012 2013 2014Common Fund increase

0.0% 0.0% 3.7% 1.9%

Actual Survey Membership

24,435 23,950 23,071 22,620

Average like-with-like three year Membership Reduction

648 2.6%

6432.6%

4711.9%

6052.5%

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%.

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 34th out of 42. We need to turn this around.”

HOW MUCH DOES A STIPENDIARY PRIEST COST (2014)?

Item £ Notes

Stipend 24,813 Bath & Wells average stipend for calendar year

Pension 8,492 38.2% contribution rate on prior year NMS

Social Security 2,065 Employer’s National Insurance contribution (HMRC rates)

Stipend / Pension / Soc Sec 35,370

Housing repairs and maintenance, insurance, council tax and water rates

6,504

Total expenditure items noted divided by priest numbers.

Removal costs and grants 610

Training and support – Ordinands 2,316

Training – in service (CMD) 290

Retirement housing (CHARM) 500

Housing / Removals / Training 10,220

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