1. LDBF Financing mission and ministry in the Diocese of Leicester

2. 5 year history 2003 to 2007 Assets Assets Income Income Expenditure Expenditure

4. Summary Overview - Assets We have a sound asset base which has been growing in value. We have a sound asset base which has been growing in value. Asset value growth comes from the sale of property at above book value, as well as stock market gains. Asset value growth comes from the sale of property at above book value, as well as stock market gains. Much of the asset base is in property and investment of restricted and designated funds. Much of the asset base is in property and investment of restricted and designated funds. The last 5 years have seen significant gains in capital values for both investments and property, this may not continue. The last 5 years have seen significant gains in capital values for both investments and property, this may not continue. Income from these investments is increasingly important in maintaining a balanced budget Income from these investments is increasingly important in maintaining a balanced budget

5. Summary Cash Flow and Assets Cumulative cash flow 2003 to 2007 £3.1 million. Cumulative cash flow 2003 to 2007 £3.1 million. 2007 loan (£0.5 million) to Launde from capital cash flow. 2007 loan (£0.5 million) to Launde from capital cash flow. 2008 loan (£0.5 million) to Cathedral Square project 2008 loan (£0.5 million) to Cathedral Square project Net assets increased by £13 million 2003 to 2007 ( glebe appreciation on disposal and stock market gain). Net assets increased by £13 million 2003 to 2007 ( glebe appreciation on disposal and stock market gain).

9. Summary Overview – Income and Expenditure 2003 to 2007 Over the last 4 years income and expenditure have largely matched each other, surpluses being set aside to cover short term fluctuations in cost and income. Over the last 4 years income and expenditure have largely matched each other, surpluses being set aside to cover short term fluctuations in cost and income. Parish share income increased by an average of 3.6% per annum (2007 by 1.4%). Parish share income increased by an average of 3.6% per annum (2007 by 1.4%). Parish related expenditure has increased by an average of 1.9% per annum. Parish related expenditure has increased by an average of 1.9% per annum. Income from Central Church and LDBF investments has increased by an average of 8.3% and 10.5% per annum respectively. Income from Central Church and LDBF investments has increased by an average of 8.3% and 10.5% per annum respectively. BUT BUT During 2007 income increased by only 1.4% whilst expenditure increased by 5.6%. During 2007 income increased by only 1.4% whilst expenditure increased by 5.6%. The main increases in expenditure in 2007 were Parish related (housing and stipend) 5%, Central Admin. and Governance 6.7%, Board of Ministry 10.8%, and Grants 20.6%. The main increases in expenditure in 2007 were Parish related (housing and stipend) 5%, Central Admin. and Governance 6.7%, Board of Ministry 10.8%, and Grants 20.6%.

10. 2008 forecast The capital base has continued to grow, income from investments will exceed budget. The capital base has continued to grow, income from investments will exceed budget. The growth in expenditure ( clergy related, youth work and grants) will exceed the growth in income for the second year in a row. The growth in expenditure ( clergy related, youth work and grants) will exceed the growth in income for the second year in a row. The out turn for 2008 may be close to breakeven despite expenditure being forecast to increase by 4.3% and parish share income forecast to increase by only 0.5% The out turn for 2008 may be close to breakeven despite expenditure being forecast to increase by 4.3% and parish share income forecast to increase by only 0.5% In the longer term, unless parish share income can be increased, the current costs will significantly exceed income when clergy vacancy rates fall. In the longer term, unless parish share income can be increased, the current costs will significantly exceed income when clergy vacancy rates fall.

11. Income and Expenditure Account DESCRIPTION 2009 2008 2007 Budget ForecastBudgetActual Full Year YearFull Year £ £££ INCOME Income restricted to stipend expenditure 2,296,415 2,266,2442,077,0161,908,507 Parish Share Income 5,079,332 4,883,9735,213,7624,858,852 TOTAL 7,375,747 7,150,2177,290,7786,767,359 Investment Income 309,000 300,000226,500280,070 House Rentals and Sundry Income 130,700 150,00088,500140,437 Ecclesiastical Insurance Donation 50,000 77,556 TOTAL 489,700 500,000365,000498,063 TOTAL INCOME 7,865,447 7,650,2177,655,7787,265,422

12. 2009 2008 2007 EXPENDITURE Budget ForecastBudgetActual PAROCHIAL MINISTRYFull Year YearFull Year Stipends 4,451,312 4,219,2444,376,1644,056,842 Houses 1,188,082 1,092,0001,091,6181,063,411 Ministry Training 364,384 370,000369,697357,413 TOTAL 6,003,777 5,681,2445,837,4795,477,666 MISSION SUPPORT Education - Statutory & Voluntary 97,556 95,00094,93592,068 Chaplaincies 147,297 144,000144,049138,275 Social Responsibility 88,071 126,000126,490110,435 Communications 110,274 89,00088,58371,580 National Church 356,979 390,000389,978357,339 Partnerships 258,555 265,000265,202234,268 Parish Funding 64,300 80,00079,53554,801 Synodical, Financial & Property Management 403,327 404,000383,378353,087 Church House 83,800 84,00083,84573,684 Legal & Professional Fees 92,115 89,000 89,712 Mission Partnerships Implementation 50,000 47,847 Youth Ministry (YP4L) 163,896 83,00083,30434,427 TOTAL 1,916,170 1,899,0001,878,2991,657,523 TOTAL EXPENDITURE 7,919,9477,580,2447,715,7787,135,189 INCOME LESS EXPENDITURE -54,50069,973-60,000130,233

13. 2009 Budget Summary Will be a difficult year with the serious national and international economic situation affecting many people Will be a difficult year with the serious national and international economic situation affecting many people The proposal is for a broadly balanced budget without compromising the mission and ministry priorities of the diocese The proposal is for a broadly balanced budget without compromising the mission and ministry priorities of the diocese Income from national church and investments will underpin the budget, at least for 2009 Income from national church and investments will underpin the budget, at least for 2009 Parish share receipts are uncertain, the response to the giving initiative will be significant in enabling the future work of the diocese Parish share receipts are uncertain, the response to the giving initiative will be significant in enabling the future work of the diocese Clergy stipends are be budgeted at around cost inflation (4%), clergy housing costs increase by over 7% - utility and building costs Clergy stipends are be budgeted at around cost inflation (4%), clergy housing costs increase by over 7% - utility and building costs Diocesan costs, other than clergy related costs, are held at a 1% increase over the 2008 forecast level Diocesan costs, other than clergy related costs, are held at a 1% increase over the 2008 forecast level Reserved surpluses from previous “good” years provide a short term contingency Reserved surpluses from previous “good” years provide a short term contingency

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