LDBFLDBF

Financing mission and Financing mission and ministry in the Diocese of ministry in the Diocese of

LeicesterLeicester

5 year history5 year history2003 to 20072003 to 2007

AssetsAssets IncomeIncome ExpenditureExpenditure

-10000

0

10000

20000

30000

40000

50000

60000

£000's

2007 2006 2005 2004 2003

Net Assets

Creditors

Cash

Debtors

Short term Deposits

Investment Assets

Tangible Fixed Assets

Summary Overview - Summary Overview - AssetsAssets

We have a sound asset base which has been We have a sound asset base which has been growing in value.growing in value.

Asset value growth comes from the sale of Asset value growth comes from the sale of property at above book value, as well as stock property at above book value, as well as stock market gains.market gains.

Much of the asset base is in property and Much of the asset base is in property and investment of restricted and designated funds.investment of restricted and designated funds.

The last 5 years have seen significant gains in The last 5 years have seen significant gains in capital values for both investments and capital values for both investments and property, this may not continue.property, this may not continue.

Income from these investments is increasingly Income from these investments is increasingly important in maintaining a balanced budgetimportant in maintaining a balanced budget

Summary Cash Flow and Summary Cash Flow and AssetsAssets

Cumulative cash flow 2003 to 2007 Cumulative cash flow 2003 to 2007 £3.1 million.£3.1 million.

2007 loan (£0.5 million) to Launde 2007 loan (£0.5 million) to Launde from capital cash flow.from capital cash flow.

2008 loan (£0.5 million) to Cathedral 2008 loan (£0.5 million) to Cathedral Square projectSquare project

Net assets increased by £13 million Net assets increased by £13 million 2003 to 2007 ( glebe appreciation on 2003 to 2007 ( glebe appreciation on disposal and stock market gain).disposal and stock market gain).

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

£000's

2009budget

2007 2005 2003

Income

Other

Grants

Fees

Glebe

Investment Incomeand interestCentral Church

Parish Share Net

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

£000's

2009budget

2007 2005 2003

Expenditure

Other

Depreciation

Communications

Partnerships

Glebe

Legal

Parish funding

Social Responsibility

YP4L

Central Church

Grants

Board of Ministry

Central Admin & governance

Parish - stipend and housing

-200

-100

-

100

200

300

400

£000's

2008budget

2007 2006 2005 2004 2003

General Surplus/deficit

General Surplus/deficit

Summary Overview –Summary Overview –Income and Expenditure 2003 Income and Expenditure 2003

to 2007to 2007 Over the last 4 years income and expenditure have largely Over the last 4 years income and expenditure have largely

matched each other, surpluses being set aside to cover short matched each other, surpluses being set aside to cover short term fluctuations in cost and income.term fluctuations in cost and income.

Parish share income increased by an average of 3.6% per Parish share income increased by an average of 3.6% per annum (2007 by 1.4%).annum (2007 by 1.4%).

Parish related expenditure has increased by an average of Parish related expenditure has increased by an average of 1.9% per annum.1.9% per annum.

Income from Central Church and LDBF investments has Income from Central Church and LDBF investments has increased by an average of 8.3% and 10.5% per annum increased by an average of 8.3% and 10.5% per annum respectively.respectively.

BUTBUT During 2007 income increased by only 1.4% whilst expenditure During 2007 income increased by only 1.4% whilst expenditure

increased by 5.6%.increased by 5.6%. The main increases in expenditure in 2007 were Parish related The main increases in expenditure in 2007 were Parish related

(housing and stipend) 5%, Central Admin. and Governance (housing and stipend) 5%, Central Admin. and Governance 6.7%, Board of Ministry 10.8%, and Grants 20.6%.6.7%, Board of Ministry 10.8%, and Grants 20.6%.

2008 forecast2008 forecast The capital base has continued to grow, The capital base has continued to grow,

income from investments will exceed budget.income from investments will exceed budget. The growth in expenditure ( clergy related, The growth in expenditure ( clergy related,

youth work and grants) will exceed the growth youth work and grants) will exceed the growth in income for the second year in a row.in income for the second year in a row.

The out turn for 2008 may be close to The out turn for 2008 may be close to breakeven despite expenditure being forecast breakeven despite expenditure being forecast to increase by 4.3% and parish share income to increase by 4.3% and parish share income forecast to increase by only 0.5%forecast to increase by only 0.5%

In the longer term, unless parish share income In the longer term, unless parish share income can be increased, the current costs will can be increased, the current costs will significantly exceed income when clergy significantly exceed income when clergy vacancy rates fall.vacancy rates fall.

Income and Expenditure Account

DESCRIPTION 2009 2008 2008 2007

Budget Forecast Budget Actual

Full Year Year Full Year  

£ £ £ £

INCOME      

Income restricted to stipend expenditure 2,296,415 2,266,244 2,077,016 1,908,507

Parish Share Income 5,079,332 4,883,973 5,213,762 4,858,852

TOTAL 7,375,747 7,150,217 7,290,778 6,767,359

     

Investment Income 309,000 300,000 226,500 280,070

House Rentals and Sundry Income 130,700 150,000 88,500 140,437

Ecclesiastical Insurance Donation 50,000 50,000 50,000 77,556

TOTAL 489,700 500,000 365,000 498,063

TOTAL INCOME 7,865,447 7,650,217 7,655,778 7,265,422

2009 2008 2008 2007

EXPENDITURE Budget Forecast Budget Actual

PAROCHIAL MINISTRY Full Year Year Full Year  

Stipends 4,451,312 4,219,244 4,376,164 4,056,842

Houses 1,188,082 1,092,000 1,091,618 1,063,411

Ministry Training 364,384 370,000 369,697 357,413

TOTAL 6,003,777 5,681,244 5,837,479 5,477,666

MISSION SUPPORT      

Education - Statutory & Voluntary 97,556 95,000 94,935 92,068

Chaplaincies 147,297 144,000 144,049 138,275

Social Responsibility 88,071 126,000 126,490 110,435

Communications 110,274 89,000 88,583 71,580

National Church 356,979 390,000 389,978 357,339

Partnerships 258,555 265,000 265,202 234,268

Parish Funding 64,300 80,000 79,535 54,801

Synodical, Financial & Property Management 403,327 404,000 383,378 353,087

Church House 83,800 84,000 83,845 73,684

Legal & Professional Fees 92,115 89,000 89,000 89,712

Mission Partnerships Implementation 50,000 50,000 50,000 47,847

Youth Ministry (YP4L) 163,896 83,000 83,304 34,427

TOTAL 1,916,170 1,899,000 1,878,299 1,657,523

TOTAL EXPENDITURE 7,919,947 7,580,244 7,715,778 7,135,189

INCOME LESS EXPENDITURE -54,500 69,973 -60,000 130,233

20092009Budget SummaryBudget Summary

Will be a difficult year with the serious national and Will be a difficult year with the serious national and international economic situation affecting many peopleinternational economic situation affecting many people

The proposal is for a broadly balanced budget without The proposal is for a broadly balanced budget without compromising the mission and ministry priorities of the compromising the mission and ministry priorities of the diocesediocese

Income from national church and investments will Income from national church and investments will underpin the budget, at least for 2009underpin the budget, at least for 2009

Parish share receipts are uncertain, the response to the Parish share receipts are uncertain, the response to the giving initiative will be significant in enabling the future giving initiative will be significant in enabling the future work of the diocesework of the diocese

Clergy stipends are be budgeted at around cost inflation Clergy stipends are be budgeted at around cost inflation (4%), clergy housing costs increase by over 7% - utility and (4%), clergy housing costs increase by over 7% - utility and building costsbuilding costs

Diocesan costs, other than clergy related costs, are held at Diocesan costs, other than clergy related costs, are held at a 1% increase over the 2008 forecast levela 1% increase over the 2008 forecast level

Reserved surpluses from previous “good” years provide a Reserved surpluses from previous “good” years provide a short term contingencyshort term contingency

Questions?Questions?

see Frequently asked Questions on see Frequently asked Questions on the web sitethe web site