1. Budget 2019 supporting the mission and ministry
of the Diocese of Rochester

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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