Budget 2019 supporting the mission and ministry of the Diocese of Rochester www.rochester.anglican.org

The Context New Finance Strategy, agreed by March ‘18 Synod Increasing costs of compliance Parish Offers not increasing in absolute terms over last 5 years Plan to break-even ‘within three years’ Key assumptions re. clergy numbers and Parish Offers ‘Indicative Offers’ – now in a period of consultation

Budget ‘19/Forecast ‘18 £M Budget 2019 Forecast 2018 Total expenditure 12.86 12.64 Transfer from DPA (re parsonage repairs) --- (0.25) Estimated capitalisation of property costs Additional reductions in costs (0.20) Pension costs provided (0.77) Diocesan Expenditure 11.64 11.37 Parish Offers 9.45 9.22* Other income 1.50 1.55 Transfers 0.09 Diocesan Income 11.04 10.77 Budget Deficit £0.60M * Budgeted £9.74M (i.e. £0.52M variance)

Budgeted SOFA ‘19 Surpluses due to realised returns on property £M SOFA 2019B SOFA 2018F Unrestricted General Fund (0.60) Other Funds (1.13) 0.30 Realised Property Gains 4.61 5.36 Surplus 2.88 5.06

Budgeted Cashflow ‘19 Improving cash-flow due to surplus sales of property £M Cashflow 2019B Cashflow 2018F Cash b/f 9.81 6.71 Operating Surplus/(Deficit) (0.60) Pension Deficit Funding (0.77) Interest on Pension Deficit 0.09 Net Projects Inflow/(outflow) (0.85) (0.92) Major Property Proceeds 11.59 7.96 Major Property Additions (4.08) (2.66) Closing Cash 15.19 Impact on return of cash movement 0.03 --- Cash C/f 15.22

5 Year Financial Projections Breakeven achieved in 2021 £M 2019B 2020P 2021P 2022P 2023P Surplus/(Deficit) on Unrestricted General Fund (0.58) (0.49) ---- 0.10 0.25

Motion Synod is asked to: approve the Diocesan Budget for 2019 authorise the expenditure of a sum for the Unrestricted General Fund not exceeding £13,000,000