Evangelical Lutheran Church in Southern Africa NT 1

Evangelical Lutheran Church in Southern Africa (N-T) 1

Program for this meeting Welcoming 1. Overview of Synod 2. Church Council Report 3. Church Laws 4. Finances 5. Church Laws continued Closing Evangelical Lutheran Church in Southern Africa (N-T) 2

Venue: Outlook Lodge, Savannah Road, Bonaero Park Arrive by 17 h 30 on 10 October Depart after the closing service on 13 October (+- 10 h 30) Register by 1 September 2019 with l. knocklein@elcsant. org. za Bring along: Synod material (either as Hard copy or on your device) Batches emailed (also on Web page of Church) Bible Your personal things (Bedding is provided) Evangelical Lutheran Church in Southern Africa (N-T) 3

Delegates who have not attended Synod 2017 (Hermannsburg) will be commissioned in the opening service. Delegates represent their congregation: They convey views and inputs from their congregations They report back to their congregations Delegates are NOT BOUND TO THE VIEWS, INSTRUCTIONS AND DECISIONS of their congregations Participate in discussions Bring your own views Reflect on what you think, and what your conscience leads you to vote, based on discussions and your own conscience without fear or favour! Delegates are expected to participate in the whole synod. If you miss a portion you have to indicate it to the Synod Council Consider whether you will make yourself available to be elected by synod Evangelical Lutheran Church in Southern Africa (N-T) 4

Elections at synod: Lay members of Church Council (one for each circuit) Active position Expectation: 4 Church Council meetings pa (2 -3 days at a time) Visitations Extraordinary meetings when required (interventions) Together with Dean communicate with circuit Is member of Circuit Council Lay members of Circuit Council (one for each circuit) Active position Expectation: Regular circuit council meetings (Afternoon or evening) Visitations in the circuit Should Church Council member discontinue, move into that position Alternate to lay member of Circuit Council (not an active position) Expectation: Should lay member of Circuit Council discontinue, you take that position. Deputy Dean Central Circuit All these elections are done by the representatives of that circuit only. Synod divides into the circuits for this. Evangelical Lutheran Church in Southern Africa (N-T) 5

Synod is the highest authority of ELCSA (N-T) Components of Synod: • Theme Bible Study Devotions • Reports • Laws • Motions • Elections • Discussion, Debate • • Prayer & Singing Fellowship Evangelical Lutheran Church in Southern Africa (N-T) 6

Theme: Go – with Purpose Church is more than just to exist Or just to be active Or just to continue with what we have been doing all along Church is about fulfilling the calling of Christ Being part of his mission Finding new ways of bringing the gospel to the people 10 Year Challenge Participate Learn from it Share through it 7

Reports: Church Council, Reflections of the Bishop Finance Church Institutions Read reports beforehand Note your questions and comments What can be discussed in table rounds? What needs to be discussed in plenary? Evangelical Lutheran Church in Southern Africa (N-T) 8

Church Council Report • Personalia • Congregations • Theological Training • Institutions linked to the Church • Inter Church Relationships • Church internal matters Evangelical Lutheran Church in Southern Africa (N-T) 9

Church Council Report ctd • Church internal matters • Motions by Church Council • 2: Name change • 3: Relocation of Church Office • Investigation on New Models • Financial challenges of congregations • Workshops with congregational councils Evangelical Lutheran Church in Southern Africa (N-T) 10

Motions to Synod Motion 2 by Church Council of ELCSA (N-T) to Church Synod 1. The Church Council of ELCSA (N-T) requests Synod to change the Name ELCSA (N-T) – Evangelical Lutheran Church in Southern Africa (N-T) to either Region East and North Evangelical Lutheran Church in South Africa (RENELCSA) Or North-East Lutheran Evangelical Church in South Africa (NELECSA) Evangelical Lutheran Church in Southern Africa (N-T) 11

Motions to Synod Motion 3 by Church Council of ELCSA (N-T) to Church Synod 1. The Church Council of ELCSA (N-T) requests Synod to ratify the moving of ELCSA (N-T) office from the Lutheran Church Centre, Bonaero Park to the Johannes Congregation, Pretoria. 2. Synod approves the building of Office Buildings on the property of the Johannes Congregation 3. Synod mandates Church Council to enter into an Agreement with the Johannes Congregation to govern the smooth running of ELCSA (N-T) operations from that property. Evangelical Lutheran Church in Southern Africa (N-T) 12

Motions to Synod Expected Motions from Congregations or Circuits Eastern Circuit: Rewording the “We do not believe in the Bible as such” in the document on “Understanding Scripture” West Rand Lutheran Community Church: Motion regarding the write down of debt Any motions have to reach Church Office by 1 September in order to be processed in time for synod! They need to be sent out by 9 September 2019. Evangelical Lutheran Church in Southern Africa (N-T) 13

Motions to Synod Motion 1 by Church Council of ELCSA (N-T) to Church Synod 1. The Church Council of ELCSA (N-T) requests Synod to extend the term of office of Bishop H Müller by two years, based on Section 3 of the Rules on the Election of the Bishop: “Section 3 Term of Office The Bishop is elected by Church Synod for a period of six years and may be reelected once. Exceptions may be permitted by Church Synod. ” 2. With this, the election of the next bishop is postponed to Synod 2023. Evangelical Lutheran Church in Southern Africa (N-T) 14

Church Laws Thank you to all congregations which gave input towards the Church Law Revision and Review process. Special mention of Pastor Udo Lütge and his team. Evangelical Lutheran Church in Southern Africa (N-T) 15

Church Laws • Purpose of Church Law • Church laws should assist in creating and maintaining order. • Church laws should enable Church growth and not hinder Church growth. • Church laws must conform to the labour and tax laws of the country. • Church laws need regular attention in order to ensure their relevance. Evangelical Lutheran Church in Southern Africa (N-T) 16

Church Laws • 1: Categories of law changes: • A): Law changes - Correction of Errors (no discussion needed, but needs to be voted on – Questions will certainly be entertained today) • B): Law Changes – Clarification and Correction off Conflicts (short discussion allowed) • C): Law Changes – Changes in policies, procedures (Discussion necessary) • D): Law Changes – new points (Discussion necessary) Evangelical Lutheran Church in Southern Africa (N-T) 17

Church Laws - Detail • 4: Law Changes – Changes in policies, procedures (Discussion necessary) • Placing of pastors (Significant change) Example: 2012: Congregation elected pastor who serves till 2020: Church council can choose to place a pastor. Pastor serves till 2028: Congregation elects Or 2012: Congregation elected pastor who serves till 2020: Church council can choose to place a pastor, but does not make use of this option. Congregation elects. Pastor serves till 2028: Church Council can choose to place a pastor Evangelical Lutheran Church in Southern Africa (N-T) 18

Church Laws - Detail • 4: Law Changes – Changes in policies, procedures (Discussion necessary) • Election of bishop (Significant change) Example 1: Pastor A (aged 55) is elected as Bishop At age 61 he is elected for term 2 and retires age 67 (Serves 2 x 6 years) Example 2: Pastor B (aged 40) is elected as Bishop At age 46 he is elected for term 2 At age 52 he becomes pastor in a congregation again (Serves 2 x 6 years) Example 3: Pastor C (aged 57) is elected/re-elected as Bishop and serves 8 -9 years till the synod after date of retirement, i. e. age 66 or 67 (6+8/9 years) Example 4: Pastor D (aged 63) is elected/re-elected as Bishop and serves 4 -5 years till the synod after date of retirement, i. e. age 67 Evangelical Lutheran Church in Southern Africa (N-T) 19

Finance Evangelical Lutheran Church in Southern Africa (N-T) 20

AGENDA FINANCES • FINANCIAL RESULTS 2017 + 2018 • Violence and Trauma fund • Gossman Trust • BUDGETS FOR 2020 & 2021 • CHURCH LAW 1/2019 covering: contributions schedules for Pastor in Service and Church Running cost • WRLCC – Motion on Debt Write down

2017/18/19 YTD RESULTS OBSERVATIONS • Surplus for 2017 was R 527, 815 • Loss for 2018 was R 517, 869 This is mostly as a result of 2018 being a bad year for investments in general, but specifically for ELCSA[N-T] portfolio. • Solidarity Contributions below budget. • EKD receipt was above budget because of weaker Rand. • 2019 YTD R 1, 081, 662 Surplus Evangelical Lutheran Church in Southern Africa (N-T)

Achievements 2017 to 2019 -With Purpose • • • Post retirement Medical liability investment moved to a dedicated investment fund. Restructured Retirement and risk benefits together with ELC Pension fund. Carmen Westermeyer trustee at ELC Pension Fund. Sold Endeavour Farm to DSH Trust and formed a Fund [R 5 million] to fund the half pastors post at Hermannsburg Schule. Accounting and administration was streamlined. Financial Reporting now on a monthly basis. Durban properties sold and Dolphin Coast Congregation formally established. Arrears contribution was managed down. From 2019 again a problem. New arrangement with West Rand Congregation. Moved investments to a new asset manager [PSG] and with that a higher foreign exposure. Planning of new office for ELCSA [N-T]-forced by situation at current location. Haus Kandaze –Rezoned to business. Sold Property. Evangelical Lutheran Church in Southern Africa (N-T)

Income Statement Summary of Income Statement elements 2017 2018 YTD 2019 Pastors in Service Nett Church Running Costs to be recovered Investment Income less allocation. Investment carry 212, 439 (163, 119) 285, 729 5, 303 261, 700 12, 216 310, 072 (616, 449) 783, 718 As per the above summary 527, 815 (517, 869) 1, 081, 662

Church Running Cost Nett Church Running costs 2017 2018 Actual Bishop [CTC and housing] Actual % Budget YTD 1, 255, 682 905, 118 -15% 1, 064, 008 255, 223 332, 373 -17% 399, 119 1, 027, 123 1, 057, 203 14% 929, 945 Membership fees 129, 282 128, 930 -13% 147, 711 Circuits 208, 000 222, 560 0% 222, 560 Total Church running costs 2, 875, 310 2, 646, 183 -4% 2, 763, 342 Setoff Income 1, 848, 260 2, 171, 454 -14% 2, 515, 000 707, 524 931, 335 -28% 1, 300, 000 1, 133, 396 1, 230, 979 1% 1, 215, 000 7, 340 9, 140 Nett Church Running Costs to be recovered 1, 027, 050 474, 730 91% 248, 342 Church running Cost contribution from Congregations 1, 032, 353 736, 429 0% 736, 429 5, 303 261, 700 Traveling and Accommodation Office Solidarity Contributions SUBSIDIES FROM E. K. D Other Income Excess/(Under Recovery) - Evangelical Lutheran Church in Southern Africa (N-T) 488, 087

In March 2016 the number of months in outstanding Contributions was a total of 2. 4 months [0. 5 months if historic slow payers where excluded]. This was reduced to 1. 1 month in December 2018. If historic slow payers are excluded the contributions were even received in advance in December 2018 Thank you for your contributions 2019 getting bad again

Offerings and Solidarity Contributions Offerings very stable but no increase. Solidarity Contributions stable at around R 800 -New budget level

REPORTS • a) VIOLENCE AND TRAUMA Fund The Violence and Trauma Fund has been dormant for many years. No new contributions were received, or assistance sought. During 2018 the Church Council received a request for assistance of a deserving case involving a young child in one of our congregations. The Church council decided to support this worthy case with the total balance of the fund R 208, 485. The balance of the fund is now Zero. The Church Council and Treasurer request the Synod to close the Violence and Trauma fund. • b) DIACONICAL FUND – GOSSMAN TRUST – Fund Balance at 31. 12. 2018 = R 310, 356 No claim for assistance was made in 2017 and 2018

Thank you Any Questions?

West Rand Lutheran Community Church Motion to Write down Debt

West Rand Lutheran Community Church-Debt history Year Invoiced a 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 232, 283 244, 344 275, 537 297, 889 319, 475 342, 637 365, 851 387, 902 422, 810 460, 309 504, 440 553, 237 584, 778 14, 447 Payment Received b (246, 183) (288, 966) (300, 976) (334, 227) (235, 579) (232, 200) (314, 490) (135, 470) (146, 661) (859, 306) (127, 816) (210, 000) (422, 000) (159, 333) % Paid c=/a/b 106% 118% 109% 112% 74% 68% 86% 35% 187% 25% 38% 72% 1103% Other costs Interest d e 750 207 0 0 0 0 15, 546 46, 161 62, 783 54, 822 97, 572 142, 272 81, 619 500, 773 Calculated Annual Balance at end of DEBT year increase f=sum(a+b+d+e) 135, 049 90, 428 64, 988 28, 651 112, 546 222, 983 274, 344 543, 073 865, 590 529, 377 960, 822 1, 401, 630 1, 706, 680 1, 643, 423 135, 049 90, 427 64, 987 28, 650 112, 545 222, 983 274, 344 543, 072 865, 590 529, 375 960, 821 1, 401, 630 1, 706, 680 1, 643, 412 -9% -33% -28% -56% 293% 98% 23% 98% 59% -39% 82% 46% 22% -4%

What has Changed • From 1 January 2019 the Pastors post is vacant • Pastor Jochen Volker has, on his request, been granted “leave of absence” by the Church Council. • WRLCC employs Pastor Volker directly. • Only Church Running cost are being invoiced to WRLCC and paid up to date. • WRLCC committed to pay R 35 000 per month-this was upheld for 3 months. Now a level of R 10 000 being paid • WRLCC submitted motion to write down debt to Synod. • Church Council supports this conditional motion

WRLCC motion • ELCSA [N-T] will suspend to levy interest on arear account for WRLCC from 1 January 2019. • Effective from 1 January 2019 a write down at a ratio of R 4 500 for each R 10 000 paid. • This would have the effect that if R 120 000 is paid per annum the “historic accumulated interest” will be written down

ELCSA(N-T) Budget 2020 -21 Evangelical Lutheran Church in Southern Africa (N-T)

Total Congregation Contribution Projects Various funds and Projects Nett Investment Income Investment yield Less Interest Allocation to Funds Church Running Cost Medical Prefunding Pastors in Service Net Church Running Cost to company Medical Prefunding Pastors Transfer cost Continuous training Church Running Cost: Bishop Travel & Accommodation Office- Own office Membership fees Circuits Continuous training Vehicle Replacement cost (Pastors Transfer cost) Income: Net Solidarity contributions EKD Subsidy

Total Congregation Contribution Pastors in Service Cost to company Medical Prefunding Pastors Transfer cost Continuous training Pastors post budget 2020 R 634, 756 +7% 2021 R 675, 901 +6. 5% • Budget is based on the highest salary scale - Most of our pastors are on this scale. • Pastors Transfer cost was previously erroneously budgeted in the “Church Running” cost • Some continuous training cost is also budgeted in this post-previously the full cost was budgeted under “Church Running” cost. • Contribution to Post retirement medical fund was increased to R 1. 150 million. Subsidy from investments return allocated to reduce the impact. • Pastor annual cost 2020 R 634 756 and 2021 R 675 901.

Cost of Pastors in Service 6. 50% Standard Pastor cost Salary 2019 6. 50% 2019 pa 2020 6. 50% 2020 pa 2021 pa 31, 400 409, 909 33, 441 430, 651 35, 615 458, 643 Child Allowance 450 5, 400 Uniform Allowance 100 1, 200 Other Allowance 400 4, 800 5, 039 60, 466 5, 442 65, 303 5, 796 69, 548 37, 520 481, 775 39, 833 507, 354 42, 360 539, 592 4, 729 61, 461 5, 014 60, 173 5, 339 64, 072 1, 090 13, 081 1, 161 13, 929 Medical Aid Total Cost to ELCSA (N-T) PENSION Pension Ex Group Life UIF Group Life Cost to Company before medical provision 79 1, 025 84 1, 077 89 1, 147 1, 135 14, 757 241 3, 101 256 3, 302 43, 463 559, 017 46, 262 584, 785 49, 206 622, 041 1, 178 14, 141 1, 347 16, 162 337 4, 040 Transfer cost provision Cost of continues Training Pastors in service medical aid prefunding Total Cost to ELCSA (N-T) Pastor in Service 2, 856 34, 271 2, 649 31, 789 2, 805 33, 658 46, 319 593, 289 50, 426 634, 756 53, 694 675, 901 Evangelical Lutheran Church in Southern Africa (N-T)

Enhancements to Pastors Remuneration • In 2017 the Church increased Risk insurance [Disability and Dread decease] insurance. • As a result of a intervention by ELCSA[N-T], UELCSA had discussions with the ELC Pension fund. • In 2018 the ELC Pension fund enhanced its Risk benefits. • This allowed ELCSA [N-T] to reduce the risk insurance and is now contributing an additional 2. 50% to employees pension fund. • This will especially benefit the post 2010 pastors who are excluded from the Post-retirement medical subsidy. Evangelical Lutheran Church in Southern Africa (N-T)

Cost of Pastors in Service Pastors In Service Month out of 12 Total Congregation Invoiced Contributions -Youth Pastor Vacancy Adjustment Total Nett Income Cost to company Pastors Salaries - Pastors in Service ELCSA (N-T) Medical Post Retirement Fund Subsidy-Interest allocation Transfer Cost Continued Training Pastors Net Pastors In Service Effect of "new " cost elements added to Pastors in Service Cost to company Medical Prefunding Direct Cost Transfer cost Continues Training Total 2019 % VS 2020 % VS PREV Budget 16 914 002 -0. 5% 16 821 035 6. 5% 148 368 7. 0% 158 689 6. 5% (534 126) 137. 7% (1 269 512) 6. 5% 16 528 244 -4. 9% 15 710 212 6. 5% 16 826 996 -6. 6% 15 710 212 6. 5% 15 542 946 -7. 3% 14 409 859 6. 4% 985 298 16. 8% 190 752 108 000 83. 5% -7. 4% 1 150 353 0. 0% (300 000) -16. 7% 350 000 14. 3% 100 0. 0% (298 752) -100. 0% 2019 559 017 34 271 593 289 0 0 593 289 % increase 4. 6% -7. 2% 3. 9% 100. 0% 7. 0% 2021 Budget 17 911 383 168 975 (1 351 803) 16 728 556 15 328 203 1 150 353 (250 000) 400 000 100 0 2020 584 785 31 789 616 574 14 141 4 040 634 756 0 % increase 6. 4% 5. 9% 6. 3% 14. 3% 0. 0% 6. 5% 2021 622 041 33 658 655 699 16 162 4 040 675 901

• New ELCSA(N-T) building • Problems, concerns at current office • Reduced Vehicle replacement provision • Continuous training for Co-workers still budgeted here • Pastors Transfer cost to Pastors in Service. • Reduced Solidarity Contribution. • Interest Allocation. Total Congregation Contribution Net Church Running Cost: Bishop Travel & Accommodation Office- Own office Membership fees Circuits Continuous training Vehicle Replacement cost (Pastors Transfer cost) Income: Net Solidarity contributions EKD Subsidy Budget 2020 R 31, 098 +1. 1% 2021 R 36, 762+18. 2% Income Static

Church Running Cost • • • The cost of the Bishop [Salary at cost to company, housing, transport, vehicle replacement] Savings in Bishops Vehicle replacement provision was budgeted for. The Church office [Office Rental, office staff costs, Printing and Stationery Communication, Repairs and Maintenance of Office Equipment, Audit Fees, Bank Charges, Insurance] Traveling and accommodation cost for Bishop and Church Council meetings. Cost for the Synod is also provided for over 2 years During this 2018 and 2019 year the Office rental increased as we had to start paying more market related rental as ELCSA [N-T] is not a shareholder in the Kempton Park complex any more. Rental and service cost would be around R 200 000 per annum and even higher if rented in open market The planned office building at the congregation Johannesgemeinde Pretoria should yield a saving of around R 100000 per annum, this will be partly offset by approximately R 70 000 loss in Interest yield as the funds used to build the offices will be taken out of investments. The Solidarity contributions are reduced to R 850 000 and R 900 000 respectively, down from the previous level of R 1. 3 million. EKD Funding is maintained at € 81 000 and we are very thankful for this support. There was a possibility that we could lose this support but the 2018 visit and “inspection” by EKD delegation had a positive outcome Evangelical Lutheran Church in Southern Africa (N-T)

Gross Church Running Cost Nett Church Running costs 2019 Budget 1, 123, 540 431, 893 995, 041 108, 000 158, 051 238, 139 % VS PREV -5. 4% -14. 1% 10. 4% -7. 4% 6. 0% 2020 Budget 1, 063, 283 370, 925 1, 098, 775 100, 000 167, 534 252, 428 2021 Budget 1, 128, 647 392, 461 1, 161, 102 100, 000 177, 586 267, 573 Total Church running costs Moved to Pastors in Service 3, 054, 664 298, 752 -0. 1% 3, 052, 944 3, 227, 368 Total Church running costs before reallocation 3, 353, 416 -9% 3, 052, 944 3, 227, 368 2, 515, 000 1, 300, 000 1, 215, 000 - -12. 3% -34. 6% 0. 0% 100. 0% 2, 205, 000 850, 000 1, 215, 000 10, 000 130, 000 2, 225, 000 900, 000 1, 215, 000 100, 000 539, 664 57. 1% 847, 944 1, 002, 368 838, 416 298, 752 1. 1% 847, 944 0 1, 002, 368 0 Bishop [CTC and housing] Traveling and Accommodation Office Cost Continued Training General Membership Fees Circuits Setoff Income Solidarity Contributions Subsidies from E. K. D Other Income Interest allocation Nett Church Running Costs to be recovered Church running Cost contribution from Congregations Excess/(Under Recovery) Evangelical Lutheran Church in Southern Africa (N-T)

Cost new building Assumptions Total cost Capital amortised(years) Total cost per month Current Rent and utility cost Interest "opportunity" cost CPI Amortise cost Cash Cost Budget Cost "Loss" of income on Capital Total Cost Rental cost at current Venue "Saving" "Cumulative " Saving Payback 8 years Y 1 1 500 000 Y 2 Y 3 1 440 000 1 380 000 Y 10 960 000 Y 11 900 000 Y 12 840 000 Y 13 780 000 Y 14 720 000 25 2 700 200 000 5% 6% Y 10 60 000 Y 14 60 000 32 400 34 344 36 405 54 739 58 023 61 505 65 195 69 107 92 400 94 344 96 405 114 739 118 023 121 505 125 195 129 107 75 000 72 000 69 000 48 000 45 000 42 000 39 000 36 000 167 400 166 344 165 405 162 739 163 023 163 505 164 195 165 107 200 000 212 000 224 720 337 896 358 170 379 660 402 439 426 586 32 600 45 656 59 315 175 157 195 146 216 155 238 244 261 479 137 571 60 000 Y 13 60 000 78 256 60 000 Y 12 60 000 32 600 60 000 Y 11 60 000 994 101 1 189 247 1 405 402 1 643 646 1 905 125 Payback Evangelical Lutheran Church in Southern Africa (N-T)

Nett Church Running Cost Net Church Running Cost No of posts Total Church running Costs EKD Grant Net Church Running cost "WITHOUT" Solidarity Contributions 2019 Budget R 2020 29. 02 3, 245, 416 R % 111, 847 3, 052, 944 -5. 9% (1, 215, 000) (41, 872) (1, 215, 000) 0. 0% 2, 030, 416 69, 974 1, 837, 944 (1, 300, 000) (44, 802) 2021 27. 27 R 111, 966 % 3, 227, 368 (44, 560) (1, 215, 000) 5. 7% 27. 27 118, 363 0. 0% (44, 560) -9. 5% 67, 406 2, 012, 368 9. 5% 73, 803 (850, 000) -34. 6% (31, 174) (900, 000) 5. 9% (33, 007) Sundry income 0 (10, 000) (367) (10, 000) 0. 0% (367) Interest Allocation 0 (130, 000) (4, 768) (100, 000) -23. 1% (3, 667) 31, 098 1, 002, 368 Budget 730, 416 25, 172 847, 944 To be collected 838, 416 28, 894 847, 944 Net over (under) collected 108, 000 3, 722 0 0 13. 8% 12. 9% 1. 1% 7. 6% 18. 2% % increase 1. 1% 36, 762 18. 2% 36, 762 If your congregation contributes below this level in Solidarity Contributions you are being SUBSIDISED Evangelical Lutheran Church in Southern Africa (N-T)

Investment assumptions 2020 2021 6. 50% 2. 00% 5. 00% Interest Yield Dividend Yield Capital Growth 6. 50% 2. 00% 5. 00% Total Congregation Contribution Projects Various funds and Projects Nett Investment Income Investment yield Less Interest Allocation to Funds Church Running Cost Medical Prefunding • 2018 Actual poor investment return • Changed Asset Manager and shifted to foreign assets [50%] • Allocation of funds to Church Running cost and Medical Prefunding

Investment Carry Investment Income less allocation. Investment carry Investment income General funds Medical Funds Hermannsburg Schule fund INVESTMENT INCOME Interest on Arrears Accounts Interest on Loans Interest Allocation General funds Allocation To nett Church Running cost Allocation Medical Prefunding Net Interest carry after allocation Medical Funds Hermannsburg Schule fund Net Investment Carry Investments per Balance sheet %Return on total investment BALANCE SHEET AT INVESTMENTS Investments General Funds Investments Medical Funds Investment Hermannsburg Schule Reserve Standard Bank Money market 2019 Budget % VS PREV 523 955 32. 5% 523 955 25. 9% 1 047 910 0 0 61. 3% (516 994) -35. 6% 530 916 (516 994) 13 922 23 712 647 4. 42% 2020 Budget 694 175 659 639 336 130 1 689 944 % VS PREV -1. 0% 9. 7% 0. 1% 3. 4% 221 741 27. 6% 998. 9% 2018 Actual 25 143 448 6 091 878 8 698 416 4 683 740 5 669 414 161 990 (332 925) -16. 1% (130 000) (300 000) 1 148 759 (659 639) (336 130) 152 991 25 023 774 6. 75% 2019 Budget 23 712 647 6 261 005 9 423 416 4 778 450 3 249 777 2021 Budget 687 108 723 307 336 354 1 746 769 9. 7% 43. 7% 2020 Budget 25 023 774 7 024 351 10 332 958 4 683 740 2 982 726 (279 288) (100 000) (250 000) 1 279 471 (723 307) (336 354) 219 810 25 694 825 6. 80% 2021 Budget 25 694 825 7 542 944 11 265 791 4 683 740 2 202 350

Summary Income Statement 2019 Summary of Income Statement elements Budget Pastors in Service (298 752) Nett Church Running Costs to be recovered 298 752 Investment Income less allocation-Investment carry 13 922 Total 13 922 2020 2021 Budget 0 0 152 991 219 810 • Pastors in Service and Nett Church Running cost – fully recovered • Investment Carry-Allocated some to subsidise Pastors in Service and Church running cost Evangelical Lutheran Church in Southern Africa (N-T)

Summary of impact to Congregation Contribution Summary of Increases 2019 Pastors in Service Cost 593 289 Net Church Running Cost 28 894 Total 622 183 % increase 2020 % increase 2021 7. 0% 634 756 6. 5% 675 901 7. 6% 31 098 7. 0% 665 854 18. 2% 36 762 7. 0% 712 663 • Increase in 2020 is higher due to the reduced Voluntary Offerings foreseen. The increase would have been 10. 2% if funds had not been allocated from Interest carry to Church running cost and medical prefunding. • The total increase in 2020 for a congregation WITH a pastor in service is a reasonable 7% to R 665 854. • The increase in 2021 will be [7%] to R 712 663. • For congregations WITHOUT a pastor in service the increases are 7. 6% and 18. 2% respectively

CHURCH LAW 1/2019 Section 1&2 1) The Expenditure budget of the ELCSA (N-T) for the financial years 2020 and 2021 is established according to the budget in Schedule 1 attached hereto as follows: • 2020: R 18, 916, 147 • 2021: R 20, 175, 805 (2) The financial year is the calendar year. Section 2. (1) The financial requirements to be covered by contributions of congregations for Cost of Pastor in service and Church running cost and Voluntary Contributions, in accordance with Section 74 (1) of the Constitution of ELCSA (N-T) are assessed as follows: • 2020: R 18, 763, 156 • 2021: R 19, 955, 924

CHURCH LAW 1/2019 Section 3 a. In accordance with Section 74 (1) of the Constitution of ELCSA (N-T) the following offerings for the church are prescribed: Prescribed Offering Mission Fund of the Church Circuit Youth Work (see * below) Theological Education Church Music (Cantate) Total Additional ‘recommended’ offering’s Solidarity Offerings Deutsche Schule Hermannsburg* Old Age Homes: APN / Richmond Road / local home* Circuit Senior work* Total Prescribed number 12 4 4 1 21 6 4 2 2 14

CHURCH LAW 1/2019 Section 3 (3) The 10% offerings received from Congregations participating in the practice as approved in (2) will be allocated as follows: Offering Number % Solidarity Offerings 12 4 4 1 6 44% 15% 4% 22% Total 27 100% Mission Fund of the Church Circuit Youth Work Theological Education Church Music (Cantate)

Questions and issues

Church Laws • Law Changes – Changes in policies, procedures (Discussion necessary) • Chairing of synod (minor addition) Evangelical Lutheran Church in Southern Africa (N-T) 71

Church Laws • Law Changes – new points (Discussion necessary) • Probation Period for new Pastors • Transfer of a Pastor after 12 years in a congregation • Congregational membership no longer automatically linked to place of residence • Minimum age for Congregational Council reduced to 18 • Term of office for councillors can be 3 x 2 years or 2 x 3 or 2 x 4 years • Lay administration of Sacraments added into Congregational Code • Change due to SARS requirements in Congregational Code Evangelical Lutheran Church in Southern Africa (N-T) 72

Thank you for your attention! Evangelical Lutheran Church in Southern Africa (N-T) 73