Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

New layout of financial statements   Historically, the affairs of the Diocese were presented in a fragmented fashion which made it difficult to understand the true overall position of the Diocese. It has therefore been decided to merge the Trustee accounts and the DFB accounts into one reporting document. A further issue was that the activities reported in the financial statements for the most part did not properly reflect the various activities of the Diocese in line withy the Diocesan Vision and Strategy.

New layout of financial statements   In terms of the Diocesan Vision and strategy, the Diocese has the following portfolio teams Chapter has the following portfolios: Church Growth Portfolio Ministry formation portfolio (including School for Ministries) Pastoral care portfolio Spiritual formation portfolio Young peoples ministry portfolio Trustees have the following portfolios Property portfolio Social responsibility portfolio Institutions and organisations portfolio The Diocesan Central Office is responsible for the administration of the affairs of the Diocese including Property Management, financing activities, Human Resources and Administration, etc In addition there are a number of Diocesan wide activities under the Bishop’s office which are Episcopal and Pastoral in nature.

New layout of financial statements   The new format of the financial statements therefore follows these various activities with separate accounting for the affairs of Chapter, the Trustees, The Diocese and the office BUT All within one set of accounts While the transition to the new arrangements with Standard Bank is concluded, the Deposit Fund will continue to be reported upon separately but it will in due course be wound up. We therefore present a summary of 2016 accounts in this revised format

DIOCESE OF JOHANNESBURG Income statement for the period to 31 December 2016   This year Next year Actual Budget INCOME Diocesan Activities income Diocesan affairs -7628591 -7383000 -7680000 Chapter income Church growth portfolio -680665 -662000 -538000 School for ministries -20327 Pastoral care -311945 -250000 Total Chapter income -994272 -788000 Trustee income Property -1792709 -1685679 -1765580 Social responsibility 60240 Total Trustee income -1732469 Administration income Administration -736823 -708336 -799830 Diocesan office -1131222 -988576 -1050000 Financing activities -1868045 -1696912 -1849830 Total -11909770 -11759863 -12083410 Total income  

EXPENSES   Diocesan Activity expenses Synod expenses 54966 60286 214000 Office of the Bishop 1230760 1477573 1728500 Diocesan affairs 146877 144438 220210 Province 1725036 1940000 Total Diocesan Activity expenses 3157639 3407333 4102710 Chapter Expenses Church growth 149290 163549 486000 School for ministries 1474736 1260861 1152170 Pastoral Care 1548826 1610378 1864625 Total Chapter expenses 3172852 3034788 3502795 Trustees expenses Diocesan Centre 1126971 1220780 1301330 Total Trustees expenses Administration activities Administration expenses 3221995 2868508 3455030 Financing expenses 811823 782735 752720 Total administration expenses 4033818 3651243 4207750 Total expenses 11491280 11314144 13114585 Net surplus before transfers -418490 -445719 1031175 Tfrs to/(from) Joint Ordination Fund -23041 Tfrs to/(from) Pension med fund pre 1955 -355907 Total transfers -378948 Net surplus/(deficit) -797438

Diocese of Johannesburg   Deposit Fund Income Statement for the period ended 31 December 2016 This year Last year INCOME Interest received -4420340 -4034110 EXPENSES Interest paid 3614964 3611184 Other expenses Bank charges 37887 61507 Audit Fee 30000 Admin Fee 279302 301906 DFB Interest management 400000 717189 393413 4332153 4004597 Net surplus 88187 29513

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA   Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

Update on Standard Bank Negotiations have been proceeding with Standard Bank for more than a year to develop a new and improved banking experience for the Diocese as a whole. New arrangements will result in Consolidation of all balances and payment of interest on total deposits No bank charges to parishes except cash deposits (fee in the regard has been halved) Interest will be paid on current account credits Closure of

Update on Standard Bank Negotiations have been proceeding with Standard Bank for more than a year to develop a new and improved banking experience for the Diocese as a whole. New arrangements will result in Consolidation of all balances and payment of interest on total deposits No bank charges to parishes except cash deposits (fee in this regard has been halved) Interest will be paid on current account credits Closure of Deposit Fund Better management of funding arrangements More information will be provided once the arrangements are finalised

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

Vestry Readiness (Rule H-1) - Reminder   Vestry meetings should be held no later than the 15th March 2017. Notice of Vestry should be published 22 days before the meeting. Note the Agenda in H1.2. No other business may be transacted at the Annual Vestry Meeting except with the consent of the Chairperson. Rules for nominating Warden and Councillors must be adhered to. All returns to be submitted one week after the Vestry meeting is held. Please note rule H1.4. All the returns from Parishes and Organisations will be reviewed in detail in Quarter 2 of this year. We will discuss the returns with parishes if: There are areas of improvement that have been highlighted and not addressed. There are high risk areas that need urgent attention. Due process was not followed. Any other matters that may be deemed to be contentious and require attention. Verifiers have been instructed to report all instances of non-compliance to members at the Vestry Meeting

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

MOUs (Rule F – 3.3)  All Parishes and clergy were instructed by the Bishop on 18 October 2016 to ensure that Memoranda of Understanding must be in place by 31 December 2016 and that copies must be forwarded to the office. Less than half have been received thus far. MOUs must in terms of the Rules be reviewed annually before the end of each Calendar year. Challenges identified thus far are: The Easter Offering and 13th Cheque, The Transport allowance, and Allowances of Non-Stipendary Clergy.

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close

Diocesan Centre Update   HR & Administration will be fully functional and will focus on; Leave Management; Payroll administration; and Staff contracting. Property Management will include the following areas; Administering the Insurance, Diocesan Property Management, Financial Management will focus on; Financial Administration; and Procurement Administration

Leave Management As a start, we would like to focus on mitigating a significant risk of the Diocese. The cost of unmanaged leave can be very high and this how: Dan, the Parish Bookkeeper receives R9500 per month and the rate per day is approx. R432. Dan started working for the church in September 2011 and is entitled to 20 days leave annually. Dan has always taken 10 annual leave days during the Grahamstown Arts Festival and he does submit leave forms to the Parish Administrator that are approved by the Rector. There are other odd days that he takes too which are average to 5 a year.

Leave Management (cont) Dan had to resign in December 2016 because he has a new accountants job at a law firm. In Dan’s payslip it reflects that he has 106 days and the problem is that during the filing clean up in the Parish, the leave forms, which were not filed, went missing. The only record of leave is the payslip. The Parish has to pay R45 792.00 to Dan because the leave was never recorded. The solution is for the leave information to be centrally stored.

Bank charges – Deposit Fund An error has been identified in the office whereby amounts transferred to the Deposit Fund other than by EFT have resulted in the Deposit Fund being debited with some R37000 of bank charges in 2016. As these bank charges effectively reduce the amount placed with the Deposit Fund, they will be debited to the relevant Deposit account from January 2017

Quarterly reportback on Diocesan Affairs Saturday 11th February 2017   AGENDA Welcome   Financial position – Draft accounts to 31 December 2016 Standard Bank Update Vestry Readiness MOUs with clergy Diocesan Centre Update General Close