BRIEFING ON DIOCESAN FINANCES Presentation to Diocesan Synod

BRIEFING ON DIOCESAN FINANCES Presentation to Diocesan Synod on 13 Oct 2018 Revd. Richard Williams BSc FCA Finance Director

WHERE OUR MONEY CAME FROM

WHERE THE MONEY IS SPENT

SUPPORT COSTS FOR A PARISH (2019 Values) Cost of a Full-time Incumbent Diocesan Parish Support Costs per Benefice £ 41. 0 K £ 9. 6 K £ 50. 6 K Average contribution required to cover costs of Future Ministry, Wider Diocesan Mission and National Cof. E Net average contribution required to support parishes unable to cover fully the cost of a Full-time Incumbent and Diocesan Parish Support Costs Average contribution required from parishes £ 13. 3 K £ 7. 1 K £ 71. 0 k

PARISH OFFERS • Parish Offers have remained flat over the last five years Source: RSDBF Accounts £M

CONTRIBUTION RATE 38% • Rochester has the 3 rd lowest contribution rate as a % of income; out of 40 Dioceses Source: Church House 2018 Stats

CONTRIBUTION RATE FOR MORE DEPRIVED PARISHES Contribution Rate For More Deprived Parishes Indices of Deprivation • Most Parishes in deprived areas have contribution rates far in excess of 50% • Not only are we running a deficit, but many Parishes in deprived areas are significantly under-resourced

GIVING COMPARED Levels of Poverty (Church Urban Fund Stats) • Rochester is less deprived • Giving as % of income in Rochester is 3. 2% vs 3. 6% nationally and 5% guideline 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% National Cof. E Child Rochester Working-age Pensioner

Income and generosity Giving per week as a % of Income 25 • Average 3. 6% income • The wealthy do give more. • BUT as a proportion of income they give less. 20 15 10 5 0 <£ 5 k-£ 10 k-£ 20 k Giving/Week (£) £ 20 k-£ 40 k % Income £ 40 k-£ 60 k >£ 60 k

CHALLENGES WE FACE! • Understanding and operation of the Parish Pledge system • Local support for the mission of the church • Increasing awareness of the wider context • Diocesan support structures • Supporting Parishes in Mission Planning and Stewardship

FINANCIAL MILESTONES • Called Together • Annual Risk Assessment by Bishop’s Council • Delegated Authority Policy • Financial Strategy • Underpinning Called Together • Rolling Five-year Projections • Aiming for balanced budget by 2021 • Annual Operating and Capital Budget with Cash-flow – approved Synod – Autumn • Annual Audit and Statutory Accounts – Spring

PROPOSAL FOR INDICATIVE OFFERS • Indicative Offers for each Deanery and Parish • Formula: Cost of ministry provision (£ 41 K for a full-time incumbent) plus £ 9. 6 K per benefice for Diocesan Parish Support Costs plus 50% of Residual Net Income • System of appropriate follow up and support • Establishing a ‘Common Fund’

Indicative Offer calculation diagram

CONSULTATION TIMETABLE Consultation Process • 23 June 18 Diocesan Synod • 5 Sept 18 Deanery/Parish Consultation • W/c 10 Sept 18 Deanery/Parish Indicative Offers Published • 2 Nov 18 Close of consultation • 2 Mar 2019 Diocesan Synod for Approval

Questions?

BALANCE SHEET COMPOSITION