ELCSA (N – T) BUDGETS for 2016 and 2017 (CHURCH LAW 1 / 2015 )

BASES FOR CONTRIBUTIONS Pastor’s salaries have been increased by 7,5% and 7,5% respectively for 2016 and Total Prescribed Contributions (Pastors+Bishop+Program Facilitator) be increased by between 9,59% & 9,67% for the years respectively.(11,8+7,5) This represents an averaged increase over 2 years actual salary increase was 8%, but budget only 6%, therefore large increase for (5 pastors on lower categories, no new young ones, therefore average cost increases by more than the above salary increase. The shortfall in income, including assistance to some congregations, office + meeting costs and Deutsche Schule Hermannsburg, that is required for each year to balance the budget is shown as the Solidarity amount. As we do not receive sufficient Solidarity, we are budgeting for a shortfall. The Solidarity contribution that is required for 2016 is R1,2m and 2017 is R1,3m. This does not cover all costs.

Remuneration 2015 Notch Salary per Month Child allowance R225 per child per month Spouse's allowance R400 per monthR25,690

Average Cost Basic Salary Spouse's allowance 400 Children's allowance 385 Pension Fund Contr Bishop + Dean allowance Medical Aid Contr Insurances th Cheque Housing Sundries Medical Aid Pensioners Bishop + PF as average cost Ave. cost per Contr. Table

E L C S A (N - T ) BUDGETS SCHEDULE 1 SUMMARY BUDGET EXPENSES Salaries incl. office staff& pensioners Travelling, Accom. & Synods Office Membership Fees Sundry Expenses Circuit Expenses Solidarity Subsidies PROJECTS

Budgets INCOME BUDGET CONTRIBUTIONS - CONGREGATIONS Solidarity Interest + Dividends Sundry Income (Rental+Sundry) EKD Subsidies Transfer Interest to Projects (Reserves) PROJECT Offerings TOTAL INCOME SURPLUS/ (DEFICIT) FOR YEAR Capital Growth(fair value adjustments) Total Comprehensive Surplus(deficit)

Contributions 2016 EVANGELICAL LUTHERAN CHURCH IN SOUTHERN AFRICA (N-T) SCHEDULE 2 Average CONTRIBUTIONS ABCDEFGHIKMNOP AVE. COSTBISHOPTOTAL PROPOSEDPRESCRIBED CREDITSNET AMT201650%TOTAL CONGREGATION POSTS OF + PROGRAM CONTRIB SOLIDARITYAMOUNT FUNDEDPAYABLE%-ageYOUTHAMOUNT SOLIDARITY PASTOR FACILITATOR SUBSIDIESPAYABLE BYincreaseKZNPAYABLE Z MISSION2016over % AUGSBURG % SOLIDARITY DELP (Durban/St Paul) % SOLIDARITY DEUTSCHE SCHULE HERMANNSBURG V000.00%0 DUIWELSKLOOF/POLOKWANE %3 244 SOLIDARITY ELCER (Ev.Luth Church East Rand) % SOLIDARITY GERDAU/ POTCHEFSTROOM % SOLIDARITY HERMANNSBURG % SOLIDARITY HILLCREST % SOLIDARITY JOHANNESBURG CHURCH OF PEACE % SOLIDARITY MIDRAND/KELVIN % SOLIDARITY MOORLEIGH / WINTERTON % SOLIDARITY NELSPRUIT W % SOLIDARITY PIETERMARITZBURG % SOLIDARITY PRETORIA - JOHANNES % SOLIDARITY PRETORIA - ST.PETER % SOLIDARITY TRINITY W % SOLIDARITY VANDERBIJLPARK % SOLIDARITY VERDEN / DUNDEE % SOLIDARITY WARTBURG % SOLIDARITY WESTRAND % SOLIDARITY YOUTH PASTOR KZN % SOLIDARITY Y % ADDITIONAL SOLIDARITY X Z 0.2% Z % % KZN Youth Hub Fund NOTES :YSOLIDARITY SUBSIDIES TO CONGREGATIONSV XADDITIONAL SOLIDARITY TO BALANCE BUDGETW Z= X + YN

ELCSA (N – T) Church Law 1/2015 Section (1) The budget of the ELCSA(N-T) for the financial years 2016 and 2017 is established according to the budget in annexure 1 hereto as follows: 2016 : R 19,015, : R 20,361,656 (2)The interest and dividends from the reserve funds, amounting to about 3-5% return on investments may be taken into the Revenue and Expenditure account as income. The capital growth on the investments shall be used to retain the capital value of the reserves. (3)The financial year is the calendar year.

Church Law 1/2015 (cont.) Section 2. (1) The financial requirements to be covered by contributions of congregations in accordance with Section 74 (1) of the Constitution of ELCSA(N-T) are assessed as follows: 2016 : R14,632, : R16,047,429 (2)The contribution per congregation is assessed as detailed in Schedules 2 and 3 hereto in accordance with the provisions of Section 74 (2) of the Constitution of ELCSA(N-T). These contributions shall be included in the budgets and financial statements of the congregations in accordance with the provisions of Section 20 (1) of the Constitution of ELCSA(N-T). (3) All congregations shall provide in full in their annual budget approved by their AGM, for all contributions payable in terms of Church Law 1 and for the Solidarity fund as contained in schedules 2 and 3.

Church Law 1/2015 (cont.) Section 2ctd. (4)A Congregation that becomes vacant shall pay its full contribution for the month in which it becomes vacant. Thereafter the congregation shall only pay the Bishop and Program Facilitator’s cost as listed on the contribution Schedules 2 and 3 until the post is filled again. During the vacancy the congregation is responsible for the costs of visiting pastors.

Section 3 (1)In accordance with Section 74 (1) of the Constitution of ELCSA (N-T) the following offerings for the church are prescribed: Prescribed OfferingsNumber of Offerings – Mission Fund of the ChurchGeneral8 – Friedenskirche2 – Hillcrest/Durban (DELP)2 Church Youth Work4 * Theological Education 3 Circuit Seniors Work1 ** Church Music (Cantate) 1 Total 21 Additional ‘recommended’ offerings Solidarity6 Deutsche Schule Hermannsburg4 Old AgeHomes: APN / Richmond Road/local home2 Total 12

Section 3 ctd (*The Southern and Eastern Circuit offerings are paid into the KwaZulu-Natal Youth Work Fund. The Northern and Central Circuit offerings are paid into their respective Youth Work Funds.) (**Seniors offerings are paid into the respective Circuit Seniors funds. Northern Circuit reduces Youth work by 1 and adds this to seniors work ) (2) Congregations that do not follow Section 3, Paragraph 1 contribute at least 10 % of their total annual offerings and tithes /contributions given on the altar in lieu of the church offerings mentioned in Paragraph 1. This paragraph shall be in effect from January 2016 to December 2017 and will be reviewed at synod in The compulsory and voluntary offerings are still announced every Sunday. 10% of each Sunday’s offering and tithes/contributions go to church projects of ELCSA (N-T). Congregations with the practice that offerings and tithes/ contributions are “giving” on the altar, can apply to church council to participate in this proposal.

Section 3 ctd (3)Congregations who as a rule do not have more than 26 church services per year, contribute at least 10% of their total annual offerings in lieu of the church offerings mentioned above.

Church Law 1/2013 (cont.) Section 4 (1)One twelfth of the annual contribution shall be paid to the Central Treasury of the ELCSA (N-T) by the 20th of each month and the collections monthly. Exceptions to the above rule require the consent of the Church Council. (2)In respect of Section 3 paragraph (2) payment shall be made on receipt of the last collection of the year but not later than the end of January of the ensuing year. (3)Interest will be charged at prime rate for arrears of previous years.

Church Law 1/2013 (cont.) Section 5 Budget estimates which are not based on legal or legitimate obligations may be claimed only to the extent of available funds. Section6 (1)Church Council is authorised to deal with excess income and expenditure at the end of the financial year as it deems fit. (2) Should increased financial requirements occur during the course of the budget period, which cannot be carried forward as a deficit to the new budget year, the Church Council is authorised to prepare a supplementary budget. The supplementary budget may, however, not exceed the original budget by more than 15% of the income and expenditure as per section 1 Paragraph (1). Section 7 This law comes into force with effect from 1st January 2016