Saturday 20th May 2017 Financial Statements 2016 Canon Simon Harper

Allocation to Strategic Mission Fund Finance Result for the year Highlights Allocation to Strategic Mission Fund

Results - income 2016 2015 Change £m Income Parish Share 4,495 4,417 1.8% Archbishops‘ Council 1,523 1,539 (1.0%) Other income 1,301 1,737* (17.7%) Total income 7,319 7,693 (4.9%) * The 2015 figure includes £409k of profit on sale of fixed assets

Results: surplus for the year 2016 2015 £’000 Unrestricted funds General fund 8 357 DBF Houses Fund 79 408 Other unrestricted funds 170 (40) Total unrestricted funds 257 725 Restricted funds (138) (17) Endowment funds 626 477 Total 745 1,185

Results – General fund surplus for the year 2016 £’000 General fund (7) Less movement in investment valuations 135 Cash surplus on the general fund 128 The surplus on the general fund reported in the accounts is impacted by a number of accounting items where the cash and accounting are not identical The “cash” surplus amounted to £128k This is the balance that would be transferred to the Strategic Mission Fund

Finance – key highlights Parish contributions of £4.496m were received with £3.882m spent directly resourcing parish ministry (86.3%) Parish share income for fourth year running was in excess of £4m 64.6% of expenditure is on resourcing ministry and mission We need to build up a ”Fighting Fund” to support our Vision and enable us to access central resources, support and funding

Parish Share 8% not collected 92% collection of Parish Share

Parish Share Shortfall in Parish Share is approximately £418k Selective Allocation from Archbishops Council £1,523k Renewal & Reform programme changes the way in which funds are allocated to our Diocese As a Synod we agreed a “100%” budget with the aim that this would create a surplus which will be used in future years to invest in initiatives to support our “growing church bringing hope” strategy

Parish Share The 100% budget anticipated transferring £319k into the Strategic Mission Fund The shortfall on Parish Share has meant that only £120k has been transferred

Next steps We are accelerating the budget process for 2018 to enable earlier indications to Deaneries The Finance Synod will be held on 24 July 2017 This will provide input into the process to ensure that our spending addresses our strategic priorities The final budget will be brought back to the Synod in September

Positives Income has exceeded £7m (again) Parish share receipts increased by 1.8% The result for the year is a surplus, but underpinned by investment gains Negatives Had we collected 100% of parish share the surplus would have been around £418k higher – this £418k would have enhanced the strategic Mission fund to be used in future years The transfer to the Strategic Mission Fund has only been achieved through investment gains

Canon Simon Harper TIME FOR DISCUSSION AND QUESTIONS Newcastle Diocesan Board of Finance TIME FOR DISCUSSION AND QUESTIONS Canon Simon Harper

Financial Statements Chairman of the Board of Finance to propose: “that the Financial Statements for the year ended 31st December 2016 be received.”