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

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