MONMOUTH DIOCESAN CONFERENCE 2013
MONMOUTH DIOCESAN BOARD OF FINANCE FINANCE REPORT
MONMOUTH DIOCESAN CONFERENCE 2013 MONMOUTH DIOCESAN BOARD OF FINANCE FINANCE REPORT
Introduction I hope you will find this small booklet a useful reference. If you would like more detailed information on Diocesan finances and the work of the Diocesan Board of Finance, or if you have any suggestions to make about the content of future booklets, then please contact the Diocesan Office (contact details are at the end of the booklet, and on the Diocesan website www.churchinwales.org.uk/monmouth). Suggestions and comments are always welcomed. If you would like more copies of this booklet please contact Dan Parker at the Diocesan Office (tel. 01633 267490, email [email protected]
) Stella Schultz Diocesan Secretary
Thank you The Monmouth Diocesan Board of Finance (DBF) would like to thank all parishes who, year after year, pay their Parish Share conscientiously and on time. As parish clergy or PCC members themselves, the members of the DBF are very aware of the enormous efforts parishes are continuing to make to pay their share of the costs of ministry across the Diocese. They wish to thank everyone for their continuing hard work in helping to ensure the furtherance of God’s Kingdom.
LOOKING BACK TO 2012 Diocesan Board of Finance (DBF) income 2012 The graph at Fig 1 shows what income the DBF planned, where the money came from, and what money it actually received (all figures in this booklet are rounded to the nearest £1,000). The income we budgeted for was £3,684,000. The income we received by 31st January 2013 was £3,391,000. Our total shortfall in income for 2012 was £293,000, just over 85% of which was Parish Share. (Other payments of 2012 Parish Share were received after this date but are not included here).
Monmouth Diocesan Board of Finance Income 2012 3000000 2000000 1000000
What the DBF spent in 2012 In 2012 the DBF budgeted to spend £3,691,000. This included £7,000 from reserves to keep the average Parish Share increase to 1%. The DBF actually spent £3,407,000, approximately 7.5% less than the budget. However, the shortfall in income, meant that the overall deficit for 2012 was £16,000. The actual expenditure was divided as follows:
Monmouth Diocesan Board of Finance Expenditure 2012 4000000 3000000 2000000 1000000 0
Parish Share payments and arrears During 2012 the level of Parish Share arrears stabilised. The arrears at the end of the year were virtually the same as those at the beginning of the year. This 5
contrasts with recent years when the rate of arrears had been increasing markedly. Although some parishes are paying their Parish Share more slowly, which can lead to cash flow problems for the DBF, and there is evidence that some parishes may be using their reserves to pay the Parish Share, parishes have again made enormous efforts to pay their Parish Share on time and in full. In 2012, only 8 parishes accounted for over 60% of the Parish Share arrears. The Diocese is working with these parishes to help them tackle their difficulties. However, it is heartening to note that again over 90% of parishes paid their Parish Share either in full in 2012, or within the first 2 months of 2013.
LOOKING FORWARD TO 2014 What we are budgeting for in 2014 The DBF’s budget supports the strategy of the Diocese. In recent years the Diocese has been reducing stipendiary clergy numbers, aiming to reach the Bench of Bishops’ target of 65 posts in the Diocese by 2014. We have almost reached that number. In September 2013 we had 65.75 (includes part-time clergy) stipendiary clergy in post. The Diocese is also moving towards working together in a new pattern of ministry within Ministry Areas. The initial target number of stipendiary posts needed to support Ministry Areas is 59, so further reductions in stipendiary clergy numbers will be needed. To achieve 6
all these changes, clerics, lay people and parishes as a whole will need additional support. Accordingly, the DBF is moving towards a new pattern of expenditure. In 2014 the DBF will be spending less on clergy stipends. However, it will be spending more on training for both lay people and clergy, and on support for parishes. The DBF will be putting more money into work with children and young people, key growth areas for the future of our Church. To support the Diocesan strategy the DBF is budgeting for an income of £3,714,000 in 2014, as shown at Fig. 3. The DBF is mindful of the difficult financial and economic climate in which parishes are working, so it has again held the average Parish Share increase to 1%.
Monmouth Diocesan Board of Finance Income 2014 1%
1% Parish Share 28%
RB Grant Investm.Income
The grant from the Representative Body of the Church in Wales (‘the Block Grant’) will rise by 3% to just over £1M, although it will begin to fall from 2015 onwards. The DBF is budgeting for expenditure of £3,625,000. The planned expenditure is divided as shown at Fig 4. As agreed across the dioceses, the clergy stipend will increase by 1.5% and the budget for clergy housing costs will rise by 3.5%. A possible 3% increase in clergy Council Tax payments has also been included, as has a possible 3% increase in contributions that the Diocese must make towards clergy pensions.
Monmouth Diocesan Board of Finance Expenditure 2014 2%
Clergy & Ministry
Parish Support Dioc.Office support 82%
In summary, in 2014, for every £10.00 of income the DBF receives it will spend (2013 figures in brackets): • • • • •
£8.20 on clergy and ministry costs (£8.40) 90p on Parish support, including lay training (70p) 50p on the Diocesan Office, including support & administration (50p) 20p on Governance e.g. audit and other legal requirements (20p) 20p on DBF grants (20p) LOOKING TO THE FUTURE
We are living in challenging but exciting times as we look to build the Church of the future. The Church in Wales Review, of which the Ministry Areas initiative is a part, may entail further changes in the way in which the Church in Wales as a whole works. Within the Diocese, we must balance the reduction in the number of stipendiary clergy with the need to encourage new vocations so that there will continue to be a ministry presence throughout the Diocese. In planning for the future, the Diocese will continue to put more resources both into work with children and young people, and into providing training for lay people and clergy alike to equip them for a new way of working together.
The DBF is committed to support the Diocese as it moves forward on this journey. However, it recognises that some parishes are working under considerable pressure and some are uncertain about the future, so the DBF will continue to do all it can to keep costs down. Income and expenditure are monitored closely at the Executive Committee’s quarterly meetings, and the Committee receives regular reports on Parish finances. A small working group set up by the DBF is looking at the possible impact of Ministry Areas on the Parish Share. The DBF is also actively planning for the gradual reduction, from 2015, in the Block Grant provided by the Representative Body of the Church in Wales (the RB). Diocesan Office staff (see Appendix C for details) remain committed to working with parishes that get into difficulty with their finances. The Reverend Mark Soady, the Diocesan Stewardship Officer, and the Diocesan Stewardship Network, are also happy to give advice and guidance to parishes on Stewardship matters. A new group of experienced volunteers, the DNA Group, will be launched at the Diocesan Conference. The Group will provide advice and guidance on parish plans and projects. In the years ahead the DBF will continue to serve the Diocese, and to do all it can to ensure that the funding is in place to enable God’s Kingdom to flourish and grow.
ANNEX 1 THE PARISH SHARE In 2014 the Parish Share will comprise 70% of the income of the Diocesan Board of Finance (DBF). A further 28% of the DBF’s income comes from a grant from the Representative Body of the Church in Wales, with the remainder coming from investment income and dividends, and miscellaneous income. WHAT THE PARISH SHARE WILL BE SPENT ON: •
Clergy and ministry costs (82%): these include stipends, housing, pension contributions, Council Tax payments, insurance and clergy training;
Parish Support costs (9%): these include parish development, outreach and mission, lay training, youth and children’s work, quinquennial inspections of churches, and stewardship;
Diocesan Office support and administration (5%): these include the cost of running the Diocesan Office (office equipment, stationery and office supplies, telephones, postage etc), salaries and pension contributions for the administrative staff;
Governance (2%): this includes audit fees, the Registry and other associated legal costs, and a small sum set aside for contingencies;
Diocesan Board of Finance grants (2%): this includes grants to the Bishop’s Mission & General Fund, the Cathedral, the clergy family hardship fund, and the Clergy Widows & Dependants fund.
WHAT THE PARISH SHARE IS NOT SPENT ON: The Monmouth Diocesan Parish Share does not cover the costs of: •
the Archbishop, the Bishops and the Bishops’ Secretaries. These are met from the funds of the Representative Body of the Church in Wales
the Representative Body of the Church in Wales
the pensions of clergy retiring prior to 2008, clergy pension contributions prior to 2008. These are met by the Representative Body of the Church in Wales
any other diocese in the Church in Wales or beyond
the Monmouth Diocesan Trust
mission giving 12
ANNEX 2 THE DIOCESAN BOARD OF FINANCE (DBF) The full Diocesan Board of Finance comprises both elected and ex-officio members. It meets once a year to receive the Diocesan Annual Accounts, to approve auditors and a Secretary/Treasurer for the coming year, and to elect new members to the Executive Committee of the Diocesan Board of Finance. A full list of members is available from the Diocesan Office. The Executive Committee of the Diocesan Board of Finance comprises members of the full DBF, both elected and ex-officio. The Committee meets quarterly to monitor and review the finances of the Diocese. In 2013 the members of the Executive Committee are: Ex-officio members • • • • • • • •
Mr R D (Sandy) Blair CBE (Chairman) Mr Richard Harbottle (Vice Chairman) The Bishop of Monmouth The Dean of Monmouth The Archdeacon of Newport The Archdeacon of Monmouth The Diocesan Registrar The Chairman of the Parsonage Board
DBF Executive Committee Elected members • • • • • • • • • • •
The Reverend Mark Lawson Jones (Area Dean of Bassaleg) The Reverend Canon Timothy S Clement (Area Dean of Raglan & Usk) The Reverend David Neale (Area Dean of Newport) The Reverend Trevor Morgan (Area Dean of Bedwellty) Mr Julio Benavides Mr Simon H P Boyle Miss Paulette Brown Mr George Hughes Mr Peter E Lea Mr Philip Masters Mr Christopher Wray
Secretary & Executive Officer • Ms Stella M Schultz
ANNEX 3 THE DIOCESAN ADMIN & FINANCE TEAM Stella Schultz Diocesan Secretary Responsible for the central administration of the Diocese, including the Diocesan Trust Secretary to the Diocesan Board of Finance, the Diocesan Trust, the Diocesan Parsonage Board Member of the Bishop’s staff, and of numerous diocesan committees Stella can assist with queries on: • • • •
diocesan procedures and business Church in Wales’ procedures and business Parish Share allocation general enquiries
Sharon Smith Diocesan Accountant & Parish Resources Advisor Responsible for the day to day administration of the Diocesan accounts Secretary to the Churches & Pastoral Committee Parish Resource Development Advisor Sharon can assist with queries on: • Parish Share payments 15
• • •
parish accounts project development & funding in-house grants for mission, and for church repairs
Bethan Davies Finance Officer (part-time) Bethan assists Sharon in the day to day administration of the diocesan accounts, and parish development work Bethan can assist with queries on: • •
Parish Share payments general parish development
Dan Parker Administrative Assistant Dan provides support for the general day to day administration in the Diocesan Office. He also assists Mrs Isabel Thompson, the Diocesan Care of Churches Advisor, in the administration of the faculty system. Dan can assist with queries on: •
general diocesan administration