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

2. BASES FOR CONTRIBUTIONS Pastor’s salaries have been increased by 7,5% and 7,5% respectively for 2016 and 2017. Total Prescribed Contributions (Pastors+Bishop+Program Facilitator) be increased by between 9,59% & 9,67% for the years 2016 2017 respectively.(11,8+7,5) This represents an averaged increase over 2 years. 2015 actual salary increase was 8%, but budget only 6%, therefore large increase for 2016+17. (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.

3. Remuneration 2015 Notch Salary per Month 1 16 900 2 17 800 3 18 700 4 19 600 5 20 500 6 21 400 7 22 400 8 23 350 9 24 840 Child allowance R225 per child per month Spouse's allowance R400 per monthR25,690

4. Average Cost 201520162017 Basic Salary 24 333 26 158 28 120 Spouse's allowance 400 Children's allowance 385 Pension Fund Contr 3 133 3 811 4 201 Bishop + Dean allowance 240 261 281 Medical Aid Contr. 2 912 3 443 3 787 Insurances 636 936 1 011 13th Cheque 2 093 2 243 2 408 Housing 449 594 641 Sundries 93 130 106 34 675 38 338 41 329 Medical Aid Pensioners 1 350 1 656 1 822 36 025 39 994 43 151 Bishop + PF as average cost 2 455 2 703 2 965 38 480 42 697 46 116 Ave. cost per Contr. Table 38 359 42 037 46 103

5. E L C S A (N - T ) BUDGETS SCHEDULE 1 SUMMARY 29.09.15 BUDGET EXPENSES201520162017 Salaries incl. office staff& pensioners-14 308 841-15 439 665-16 592 376 Travelling, Accom. & Synods-427 286-455 000-561 500 Office-281 734-207 100-222 400 Membership Fees-98 118-337 750-359 920 Sundry Expenses-262 884-259 100-273 600 Circuit Expenses-185 300-196 000-208 000 Solidarity Subsidies-355 154-322 000-346 000 PROJECTS-1 617 000-1 798 602-1 797 860 -17 536 317 -19 015 217 -20 361 656

6. Budgets INCOME BUDGET 201520162017 CONTRIBUTIONS - CONGREGATIONS 13 464 03114 632 00016 047 429 Solidarity1 600 0001 200 0001 300 000 Interest + Dividends360 000600 000650 000 Sundry Income (Rental+Sundry)22 26024 00025 000 EKD Subsidies750 000900 000800 000 Transfer Interest to Projects (Reserves)-262 500 PROJECT Offerings1 511 6501 431 0001 498 264 TOTAL INCOME 17 445 441 18 787 000 20 320 693 SURPLUS/ (DEFICIT) FOR YEAR -90 876 -228 217 -40 963 Capital Growth(fair value adjustments) 500 000 600 000650000 Total Comprehensive Surplus(deficit) 409 124 371 783 609 037

7. Contributions 2016 EVANGELICAL LUTHERAN CHURCH IN SOUTHERN AFRICA (N-T) SCHEDULE 2 Average CONTRIBUTIONS 20160 29.09.15 ABCDEFGHIKMNOP AVE. COSTBISHOPTOTAL PROPOSEDPRESCRIBED CREDITSNET AMT201650%TOTAL CONGREGATION POSTS OF + PROGRAM CONTRIB SOLIDARITYAMOUNT FUNDEDPAYABLE%-ageYOUTHAMOUNT SOLIDARITY PASTOR FACILITATOR SUBSIDIESPAYABLE BYincreaseKZNPAYABLE Z 472 000944 0002016 MISSION2016over 2015252 2202016 9.59% AUGSBURG1472 00032 440504 440 9.59%15 764520 204 SOLIDARITY DELP (Durban/St Paul)1472 00032 440504 440 327 886176 5549.59%15 764192 318 SOLIDARITY DEUTSCHE SCHULE HERMANNSBURG0.5236 00016 220252 220 V000.00%0 DUIWELSKLOOF/POLOKWANE0.13 244 -98.34%3 244 SOLIDARITY ELCER (Ev.Luth Church East Rand)1472 00032 440504 440 226 998277 44220.55%277 442 SOLIDARITY GERDAU/ POTCHEFSTROOM1472 00032 440504 440 9.59%504 440 SOLIDARITY HERMANNSBURG0.5236 00016 220252 220 9.59%15 764267 984 SOLIDARITY HILLCREST1472 00032 440504 440 74 520429 92019.10%15 764445 684 SOLIDARITY JOHANNESBURG CHURCH OF PEACE1472 00032 440504 440 226 998277 4429.59%277 442 SOLIDARITY MIDRAND/KELVIN1472 00032 440504 440 10.79%504 440 SOLIDARITY MOORLEIGH / WINTERTON0.75354 00024 330378 330 9.59%15 764394 094 SOLIDARITY NELSPRUIT0.5236 00016 220252 22035 000W217 220 11.31%217 220 SOLIDARITY PIETERMARITZBURG1.25590 00040 550630 550 36.98%15 764646 314 SOLIDARITY PRETORIA - JOHANNES1472 00032 440504 440 9.59%504 440 SOLIDARITY PRETORIA - ST.PETER2944 00064 8801 008 880 9.59%1 008 880 SOLIDARITY TRINITY1472 00032 440504 44035 000W469 440 9.09%15 764485 204 SOLIDARITY VANDERBIJLPARK1472 00032 440504 440 9.59%504 440 SOLIDARITY VERDEN / DUNDEE0.5236 00016 220252 220 9.59%15 764267 984 SOLIDARITY WARTBURG0.75354 00024 330378 330 9.59%15 764394 094 SOLIDARITY WESTRAND1472 00032 440504 440 9.59%504 440 SOLIDARITY YOUTH PASTOR KZN0.25118 0008 110126 110 9.59% SOLIDARITY 29.113 688 000944 00014 632 000322 220Y14 309 780856 40213 453 3789.4%252 22013 579 4881 200 000 ADDITIONAL SOLIDARITY877 780X1 200 000Z 0.2%-126 110 Z 15 509 780 14 653 3788.6%126 11013 453 378 -126 11025% KZN Youth Hub Fund NOTES :YSOLIDARITY SUBSIDIES TO CONGREGATIONSV XADDITIONAL SOLIDARITY TO BALANCE BUDGETW Z= X + YN

8. ELCSA (N – T) Church Law 1/2015 Section 1. 29.09.15 (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 19,015,217 2017 : 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.

9. 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 : R14,632,000 2017 : 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.

10. 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.

11. 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

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 2017. 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.

13. 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.

14. 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.

15. 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