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MANCHESTER DIOCESANBOARD OF FINANCE
2020 Budget Outlook
Diocesan Synod12 October 2019
Financial Overview
2018 Actuals
2019 Forecast
2020 Budget
£'000 £'000 £'000
Income 12,421 12,536 12,534
Expenditure 13,050 13,500 13,287
Net Income / (Expenditure) (629) (964) (753)
Deficit Reduction Plan
• Need to reach a break-even point as soon as possible
• Current forecast a deficit for 2019 of c. £1.0m
• Target additional funds of at least c.£1.2m by 2022
• Mixture of reduced costs and income generation
• Budget for stipendiary clergy we can afford
Deficit Reduction - Elements
• DBF Restructure
• Generating additional income from assets
• Balancing stipendiary headcount with available
resources
• CC funding for Curates
DBF savings 2020
• Restructure implemented (£250k)
• Donation from subsidiary company (£50k)
• Benefice Transitional Support (£27k)
• National Church costs (£23k)
Assets• Church House – reduce DBF footprint
potential additional income from rentals £0.03m• Parsonages and Housing – 258 Properties
– Definitive list of keep and dispose
– Proceeds of sales
Invest for income
Funds for improving the estate
Stipends
Fundamental change in planning stipendiary numbers
from
Constrained by the number of stipendiary clergy available
to
Constrained by the funds available for clergy stipends
DBF challenges 2020
• Parish Share
• Grants to Ordinands (£170k)
• DBF staff pension deficit (£84k)
• Parochial Fee income (£71k)
• Reduction in National Church funding (£57k)
• Safeguarding past cases review (30k)
Parish Share
• 2018 receipts below forecasts
• Payments against agreed amounts after D&A -96%
• Lower baseline for increases in future years
• Increasing no. of parishes struggling to meet commitments
• D&A – success but needs changes or more people
Parish Share
Parish AttendanceATTENDANCE
Stipendiary 2019 Budget Current
ForecastDeficit
based on forecast
Draft Budget Defict based on budget
Headcount Headcount £000's Headcount £000's
2019 197.5 201 ( 964) 201 (964)
2020 193.5 193.5 ( 675) 195.5 (752)
2021 189.5 189.5 ( 406) 185 (302)
2022 175 (37)
Stipendiary
Stipendiary Clergy
Ministerial Staffing Costs
Cost of incumbent-status minister
StipendEmployer’s NI (Inc. effect of HLC)Pension contribution
Housing costs
£26,3312,1599,8769000
47,366
Actions• Communication
• Deployment Group from BLT
• Mission Units Group report in mid-2020
• Giving strategy
• Church Commissioners
• Reserves and total return
Reserves
2018 2019 2019 2020 2021 2022
2020 Budget Actuals Current Plan Forecast Current Plan Current Plan Current Plan
£'000 £'000 £'000 £'000 £'000 £'000
Incoming Resources
Parish Share (net) 7,089 7,350 7,050 7,075 7,090 7,100Church Commissioners 2,718 2,862 2,676 2,607 2,570 2,548Investments & Glebe 1,052 1,128 1,093 1,076 1,138 1,165
Other (housing/fees/donations) 1,563 1,811 1,717 1,776 1,776 1,776
TOTAL INCOMING RESOURCES 12,423 13,151 12,536 12,534 12,574 12,589
Resources Expended
Ministerial Staffing Costs 940 7,519 7,652 7,659 7,379 7,105
Strategic Support Costs (DMT, C+S, Synod, Ministry Support, Stewardship, Education, DAC/DMPC, Property/Glebe) 2,550 2,810 2,810 2,824 2,731 2,743
Support Services (Finance, Communications, Central Secretariat, Other) 8,754 2,199 2,264 2,053 2,016 2,027
726 774 774 751 751 751
13,050 13,301 13,500 13,287 12,876 12,626
(628) (151) (964) (752) (302) (37)
National Church
TOTAL RESOURCES EXPENDED
Surplus / (Deficit)
Presentation Name | 00/00/00
QUESTIONS ?
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