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 £41.0K Diocesan Parish Support Costs per Benefice £9.6K £50.6K Average contribution required to cover costs of Future Ministry, Wider Diocesan Mission and National CofE £13.3K Net average contribution required to support parishes unable to cover fully the cost of a Full-time Incumbent and Diocesan Parish Support Costs £7.1K Average contribution required from parishes £71.0k

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

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

Indices of Deprivation Contribution Rate For More Deprived Parishes CONTRIBUTION RATE FOR MORE DEPRIVED PARISHES 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 Indices of Deprivation

GIVING COMPARED Rochester is less deprived Giving as % of income in Rochester is 3.2% vs 3.6% nationally and 5% guideline

Income and generosity Average 3.6% income The wealthy do give more. BUT as a proportion of income they give less.

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 (£41K for a full-time incumbent) plus £9.6K per benefice for Diocesan Parish Support Costs plus 50% of Residual Net Income System of appropriate follow up and support Establishing a ‘Common Fund’ Common Fund … recognising we all share in the responsibilities to fund mission and ministry across the Diocese

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