Administration and Finance

Transcription

1 Key points in this report: Administration and Finance Support of the Uniting our future program Input to the Major Strategic Review Financial reporting and compliance support to Synod Review of the administration of bequests Support of the work associated with the Royal Commission into Institutional Responses to Child Sexual Abuse Continuous processes improvement and strengthened project management Support and management of Information Technology projects Resourcing and skills requirements to better service Church entities 1 INTRODUCTION The primary objectives of the Administration and Finance unit are: To develop and implement a clear and dynamic financial strategy for the Synod of Victoria and Tasmania (the Synod) which effectively supports and facilitates the overall strategy of the Synod. To enhance the management of the Synod s assets/resources through effective financial control, risk management and delivery of support services. To identify, analyse and advise on opportunities for utilisation of Synod resources to strategic advantage. The Administration and Finance group comprises: Accounting Services Heather Ackland Information Technology Services Onni Syrjanen Legal Peter Shepherd Property Services Paul Walec Risk and Insurance Sam Nicholas Records Management Graham Hawtin 2 HIGHLIGHTS It has been an extremely busy period for the unit in an environment of limited resources, financial constraints and pressure to deliver ever increasing compliance, regulatory, financial analysis and operational services to Uniting Church entities. Section E2 E2.1

2 In addition to providing operational services, Administration and Finance has supported a number of major projects. These include: The Uniting our future project management and administration. This has been an intense 14 month project with significant impacts across the entire church. There are many learnings from the project that will help inform the Major Strategic Review. Extensive input to the Major Strategic Review. The Financial Sustainability pillar is a key focus for Administration and Finance. For the first time an eight-year consolidated financial view has been constructed (3 years actual and 5 years forecast to 2018). Establishment and ongoing continuous improvement of Project Management and accompanying governance processes for all major capital works. Review and strengthening of resourcing and skills depth to better service Synod boards, committees and church entities. This is challenging for us given the financial constraints we are all operating under. 3 SENIOR MANAGEMENT CHANGES Sebert Ruddock retired from the role of Executive Director: in February Sebert made an enormous contribution to boards, committees, Synod Operations and to the wider church over the past ten years. Pauline McGillivray commenced in the role in April 2014 and brings with her considerable experience in finance, administration and property in large and complex organisations. Pier Fasnacht retired from the role of Chief Information Officer in November In his eight years of service, Pier established and developed an Information Technology shared services operation that has provided outstanding service to the Synod offices, Uniting AgeWell, UCA Funds Management, the Centre for Theology and Ministry and a number of community service agencies. Onni Syrjanen commenced as Chief Information Officer in January We also welcome Graham Hawtin who joins us in the role of Records Manager. Graham has extensive experience in records management and commenced in June ACCOUNTING SERVICES 4.1 Introduction The major functions of Accounting Services are: Accounting Operations accounts receivable, accounts payable, banking, taxation, monthly management reporting and preparation of the Synod s annual financial statements; Budgeting and Shared Services financial and budget support to the Board of Mission and Resourcing (BOMAR), UnitingCare governance reporting, Ministers Benefit Accounts, preparation of SHARE annual financial accounts and budgeting; and Payroll Synod payroll, Centralised Stipend Payroll Service (CSPS), payment of ministers' long service leave entitlements and record keeping. Section E2 E2.2

3 Accounting Services staff provide support to the Synod Audit Committee and the Synod Finance Committee. Governance reports are provided on the operations of UnitingCare agencies on a quarterly basis. Demands on the Accounting team have continued to grow with increasing regulatory requirements and demands for financial analysis and reporting relating to the Major Strategic Review, Uniting our future, bequests and other major projects. Accounting Services will continue to review processes, systems and policies in order to provide more efficient services to the Synod. 4.2 Annual Financial Report The preparation of the annual financial accounts for the Synod is a major task for Accounting Services. The Synod operates on a December year end. With the timing of the Synod meeting the annual accounts are approved by the Standing Committee at June meetings. The auditors have issued a clean audit reports for both 2012 and A report and summary of the financial report has been provided in the attached appendix. The full audited annual reports are available on request from Accounting Services. 4.3 BOMAR: Budgets and Other Support Accounting Services works closely with BOMAR and unit managers to produce the annual Synod budgets. The Mission Support Fund budget for 2014 was approved by the Standing Committee. Tables detailing the budget are within the Standing Committee report to Synod. The annual results for the Mission Support Fund for 2012 and 2013 are provided in the BOMAR report. For the preparation of the 2015 budget, a budgeting software package is being introduced. The software will streamline and improve annual budgeting processes and reduce the time spent on spreadsheets. It will also improve accuracy, efficiency and security through standardisation of input, saving significant user time. Accounting Services supports BOMAR and PART (Property Applications and Review Team) with payment and management of spending against approvals for use of property sale proceeds, loans and grants for building and other capital projects. Accounting Services also provides financial reports to each meeting of Standing Committee on the Mission Support Fund, other major funds and capital expenditure, and comments on any financial concerns. Regular reports are also provided to BOMAR and management. 4.4 Payroll The Synod provides the Centralised Stipend Payroll Service for approximately 500 ministers/lay staff across 270 congregations and agencies. Payroll also provides the payroll services for Synod staff, Uniting Aboriginal and Islander Christian Congresses and a number of kindergartens for 249 staff. 4.5 Superannuation and Tax Matters There have been a number of changes in relation to superannuation and tax. These are summarised as: Section E2 E2.3

4 4.5.1 Superannuation Requirement that all employers contribute to complying superannuation funds at minimum levels in respect of every employee including those over seventy years of age. An increase in the level of compulsory superannuation on 1 July 2014 from 9.25% to 9.5%. From 1 January 2014, MySuper legislation was enacted by the Government. The Synod has ensured that all its default funds offer a MySuper product. The government is also implementing SuperStream. SuperStream requires employers to pay super contributions electronically and submit data electronically in a specific format. To comply with these requirements the Synod will need to use a clearing house and has been working with NSG Super who will provide this service at no cost. Congregation treasurers who are paying staff directly will need to ensure they also comply with these change by 1 July Tax Issues Treasurers are reminded that congregation and church institutions need to be registered for GST so that transactions between various church entities do not attract GST. We have recently been made aware of a number of congregations who have not submitted their BAS returns for a number of years. The ATO has fined these congregations between $4,500 and $6,000. If you are unable to complete your BAS return, please contact the Synod office for assistance. 4.6 Australia Charities and Not-for-Profit Commission In 2012 the Federal Government created The Australian Charities and Not-for-profits Commission (ACNC) as an independent national regulator of charities in Australia. The ACNC aims to: Maintain, protect and enhance public trust and confidence in the sector through increased accountability and transparency; Support and sustain the not-for-profit sector; and Promote the reduction of unnecessary regulatory obligations on the sector. All congregations and presbyteries need to be registered with the ACNC and also need to complete the Annual Information Statement. Without registration, congregations will no longer be exempt from income tax. A checklist to assist congregations completing the statement has been sent to all treasurers. 4.7 Congregational Support The Treasurers Manual has been updated and is available on the Synod website. With increasing challenges faced by many congregations with bookkeeping and financial reporting obligations, we are trialling the provision of a user pays bookkeeping service for congregations. Two congregations have been invited to participate in the trial. The service will provide regular reports, bank reconciliations, correct recording of GST, completion and lodgement of the BAS and other Government reporting obligations and record CSPS transactions. Section E2 E2.4

5 5 INFORMATION TECHNOLOGY SERVICES 5.1 Introduction As a provider of shared technical infrastructure services, Information Technology Services (ITS) provides services to: 3,200 users, over 40 offices and facilities across Victoria and Tasmania, in excess of 100 active servers, and 1,200 network devices. Major clients include Synod offices in Melbourne and Launceston, UCA Funds management, presbyteries, Uniting AgeWell, the Centre for Theology and Ministry, and several UnitingCare agencies. 5.2 Major Strategic Achievements Significant achievements since the last report to Synod include: Management of the major ITS project known as UeA for Uniting AgeWell. This project will be completed in 2015 and involves the computerisation of the backend systems for Uniting AgeWell; IT support for Uniting AgeWell s Tasmanian based Home and Community Care (HACC) project, which is seeking to develop a new service model for HACC clients; Deployment of a document management system for the activities associated with the Royal Commission in early 2014; Project management of various key client based systems implementations, for example, a refresh of Uniting AgeWell and Synod websites; and Development of an ITS strategic plan to become a provider of Shared Technical Services delivering efficient, reliable and low cost Information and Communications Technology services to other Synod entities. 6 LEGAL SERVICES 6.1 Introduction The diversity of the activity undertaken by the Synod is reflected in the work of Legal Services, which underpins the undertakings of the Church whether it is for a congregation, presbytery, agency, school or the Synod. 6.2 Major Activities Legal Services has worked with the Property Board to manage the property owned by the Church on behalf of all its members. This has involved the sale, purchase and leasing of property, consolidation of titles, Act 391 applications, subdivisions, and adverse possession applications. Section E2 E2.5

6 Legal Services continues to work with congregations, presbyteries and agencies of the church to advise on projects and potential problems ranging from a neighbourhood fencing dispute to a multimillion dollar development. The Property Unit has undertaken a review of the administration of bequests. The review is being undertaken for the Property Unit by the newly appointed Trusts Officer, Sandra Bethell and Legal Services supports this process. Legal Services provided extensive support and specialist advice during the Uniting our future program. In 2014 Katrina Gillies was appointed to assist the Synod with work associated with the Royal Commission into Institutional Responses to Child Sexual Abuse. Katrina has a passion to undertake this work and is making a valuable contribution to the work of the unit in this challenging and specialised area. Legal Services supports the work of the Legal Reference Committee (LRC) which is an advisory body of the Synod Standing Committee. The LRC meets as required to consider legal issues that affect the broader Church. Legal Services provides advice on a wide range of matters such as intellectual property issues, commercial agreements, advice and assistance in investigations, assistance with insurance issues, general oversight of litigation and advice on regulatory matters. Each year brings an increase in demand for legal advice and assistance by the Church community. There continues to be a growth in the volume of legislation and regulation within society. The Church is not immune to these changes and it is vital that each one of us be aware of the changes and the possible effect they may have on the Church. Legal Services will be further tested during the Major Strategic Review program as it provides guidance on a range of complex legal matters. In our ever-changing society, the Church should be aware of the legal implications of all of its activities, so that the work of its mission is not jeopardised. Legal Services is available to assist all parts of the Church in matters which may have legal implications. 7 PROPERTY SERVICES Property Services has undertaken several major projects, in particular, the Uniting our future project. In addition, Property Services has advanced the key areas that were identified as important in the last Synod report: An Enhanced Project Governance Structure, Process and Forms for Projects over $1m; and Mission Motivated Development Enhanced Framework (MMDEF). As at June 2014, there were a total of 52 approved projects managed by a Project Control Group (PCG) which have a current value across the Synod of over $960 million. These range from projects which have commenced planning, are under construction or nearing completion. The Enhanced Project Governance Structure has minimised the risk to the applicants in order to deliver the anticipated objectives, in particular missional objectives. Section E2 E2.6

7 7.1 Trusts and Bequests The Property unit has undertaken a review of the administration of bequests. The review is being undertaken for the Property Unit by the newly appointed Trusts Officer, Sandra Bethell. Sandra is a lawyer with considerable experience in bequests, trusts and estate work. A more detailed update on the activities of the Property Services function is provided in the Property Board report. 8 RISK AND INSURANCE 8.1 Risk Management The Risk Management Unit undertakes the following functions: Insurance; Internal Audit; Occupational Health and Safety; and Any other risk management initiatives. The Unit is the primary resource for the Risk Management Committee to assist it in carrying out its oversight of the strategic risks across the Church. 8.2 Insurance Insurance Services manages the insurance program for congregations, schools, camps, Uniting AgeWell, UnitingCare and other agencies and programs of the Uniting Church under a shared service model. Insurance Services also manages all claims and negotiates all settlements to the best advantage of all participants in the insurance program. A more detailed update on the activities of the risk and insurance function is provided in the Risk Management Committee and Property Board reports. 9 INTERNAL AUDIT Internal audit provides risk-based, independent, objective assurance and assistance to the Synod Audit Committee on the Synod s financial risk, internal controls and compliance framework, with a focus on working alongside congregations, presbyteries and agencies as a support and help function. In addition it provides practical, efficient and effective recommendations to improve controls. A more detailed update on the Internal Audit function is provided in the Audit Committee report. 10 RECORDS MANAGEMENT Records Management seeks to ensure the corporate memory of the Church is captured and retained, and that records are retained for as long as they are required according to business use, legal requirements and stakeholder expectations. Section E2 E2.7

8 10.1 Future Housing of Archives Records Management is in the process of reviewing the archive and storage arrangements for the Synod s physical records and artefacts. When fully implemented, this project will secure the longevity of the collection and provide researchers and the Synod with the benefits associated with online access and records digitisation. 11 CONCLUDING REMARKS I would like to acknowledge and express my appreciation to every member of the Administration and Finance team for their valuable contribution and sustained good work over the past eighteen months, as we look forward to another challenging period ahead. It has been an intensely busy period for the Administration and Finance team with major involvement in the Uniting our future program and other major projects, an increasingly complex regulatory environment, and growing demands for reporting and financial analysis information from all governing bodies of the Church. This growing demand for support services is occurring in an environment of increasing pressure on funding and resourcing. To this end, a major focus for the period ahead will be to examine our processes and activities to seek ways to deliver services more efficiently and, where possible, at a lower cost. The Administration and Finance team will continue to provide strong support to the Synod through the work of the Major Strategic Review as the Church considers options to ensure sustainability in the 21st century. The challenge for the Church to debate and consider will be the need to find a balance between missional and commercial perspectives. The Administration and Finance role will be to provide relevant financial information and analysis to inform the decision-making process. PAULINE MCGILLIVRAY Executive Director Section E2 E2.8

9 Appendix REVIEW OF THE FINANCIAL REPORT OF THE UNITING CHURCH IN AUSTRALIA - SYNOD OF VICTORIA AND TASMANIA FOR THE YEARS ENDED 31 DECEMBER 2012 AND 31 DECEMBER 2013 The audited Financial Reports of the Synod for the year ended 31 December 2012 and 2013 will be tabled at the 2014 Synod meeting and copies are available from Accounting Services. The following report is a summary of the full Annual Financial Statements and does not include all aspects of that statement. The financial reports of the Synod include those operations controlled by: Support Services Commission for Mission Centre for Theology and Ministry Uniting Aboriginal and Islander Christian Congress Victoria Uniting Aboriginal and Islander Christian Congress Tasmania Bequests and Trusts managed by the Property Trust There are 496 reserves for which detailed reports are provided in the appendices to the Annual Accounts. They do not include results for UCA Funds Management, Uniting AgeWell, Uniting Church congregations and presbyteries, Uniting Church schools and university colleges, UnitingCare agencies, Uniting Church Parish Missions, Uniting Housing Victoria or Epworth Hospital. The Synod's principal activity is to have general oversight, direction and administration of the Church's worship, witness and service within its bounds. The Standing Committee is empowered to act on behalf of the Synod between meetings of the Synod in respect of any of the responsibilities of the Synod, except such as the Synod may determine. The Standing Committee reports its decisions to the next ordinary meeting of the Synod. The amounts in the summary tables have been rounded to the nearest thousand dollars, unless specifically stated to be otherwise. How did we perform? OPERATING RESULTS $'000 $'000 Net operating surplus /(deficit) $ 5,608 $ (22,724) The result for 2013 was a surplus of $5.608m compared to the 2012 deficit of $22.724m. The detailed result for the year is listed in the Statement of Comprehensive Income, which shows Revenue (ie income from sale of goods, services, contributions and profit on disposal of assets) and Expenses (ie what we spent the money on). Section E2 E2.9

10 Sta te me nt of Compre he nsive Income FOR T HE YEAR ENDED 31 DECEMBER 2013 $'000 $'000 Reve nue from ope ra ting a ctivitie s Mission a nd Se rvice Giving 3,624 3,614 Gra nts 1,911 1,330 Gifts, D ona tions, Be que sts 4,741 6,682 Sa le s, Fe e s & T a riffs 16,736 15,726 Insura nce pre miums re ce ive d 7,983 7,533 34,995 34,885 Reve nue from outside the ope ra ting a ctivitie s Inte re st 14,621 16,047 Proce e ds from sa le of church prope rty 11,235 2,760 Profit on sa le pla nt a nd e quipme nt Insura nce cla im proce e ds re ce ive d - 4,137 Othe r re ve nue ,724 24,291 T OT AL REVENUE 61,719 59,176 Employe e be ne fits e xpe nse 18,773 17,091 Depre cia tion e xpe nse 1,990 2,053 Gra nts pa id 10,688 13,489 Insura nce cla ims a nd pre miums pa id 6,297 9,661 Cost of goods sold a nd confe re nce s 1,230 1,315 Consulting a nd le ga l fe e s 6,804 3,921 Motor ve hicle a nd tra ve l Repa irs, ma inte na nce, prope rty, re nt 1,909 1,777 Posta ge, te le phone, printing a nd sta tione ry Borrowing costs 3,062 2,086 Impa irme nt of loa ns - 23,470 T ra nsfe r to provisions, doubtful de bts & ba d de bt write off 1,133 2,409 T ra nsfe r from provisions, Long Se rvice Le a ve 236 1,023 Othe r e xpe nse s 2,498 2,088 T OT AL EXPEN SES 56,111 81,900 N e t surplus/ (de ficit) 5,608 (22,724) Why a deficit in 2012? The major reason for the result in 2012 is the write off of the loans to Acacia College. This is reflected in the accounts as Impairment of loans $23.47m and Transfer to provisions, doubtful debts and bad debt write off $2.41m. The school site was sold in 2013 for $8.8m; $7.8m was used to repay a loan from UCA Funds Management and $1m was provided as seed funds for the special circumstances project Uniting our future. Section E2 E2.10

11 Why a surplus in 2013? The main reason for a surplus in 2013 is the receipt of proceeds from two specific sales where the income has been invested to earn interest for allocation in future years. The proceeds are recorded as income; however the investment is recorded as an asset. $2.39m has been used to create the Early Childhood Building Relief Maintenance Fund and $1.84m The Margaret Dennis Fund to fund foreign mission work. Differences in individual line items from 2012 to 2013 are explained in the full Annual Financial Report. Balance Sheet The Balance Sheet or Statement of Financial Position shows what Assets are held and what Liabilities (commitments) are owing at year end. Statement of Financial Position FOR THE YEAR ENDED 31 DECEMBER 2013 $'000 $'000 CURRENT ASSET S Ca sh a nd ca sh e quiva le nts 1, Rece iva ble s 4,099 4,525 Inve ntorie s Inve stme nts 108, ,374 Othe r 2,118 2,097 T OT AL CURRENT ASSET S 116, ,815 NON-CURRENT ASSET S Ava ila ble for sa le inve stme nts 111,048 94,161 Rece iva ble s 968 9,970 Prope rty, Pla nt a nd e quipme nt 38,159 39,591 T OT AL NON-CURRENT ASSET S 150, ,722 T OT AL ASSET S 266, ,537 CURRENT LIABILIT IES T ra de a nd othe r pa ya ble s 6,952 6,463 Short-te rm provisions 6,862 6,651 Short-te rm borrowings 33,740 8,275 Othe r 18,825 17,477 T OT AL CURRENT LIABILIT IES 66,379 38,866 NON-CURRENT LIABILIT IES Long-te rm borrowings ,284 Othe r Lia bilitie s Provisions T OT AL NON-CURRENT LIABILIT IES 1,877 33,265 T OT AL LIABILIT IES 68,256 72,131 N ET ASSET S 198, ,406 EQUIT Y Synod Funds 172, ,073 Asse t Reva lua tion Rese rve 6,176 6,380 Unre a lise d Ga ins Rese rve 19,018 7,953 T OT AL EQU IT Y 198, ,406 Section E2 E2.11

12 What are the Assets & Liabilities? Cash and cash equivalents represent the balance of the bank accounts and petty cash floats. Other than the main Synod bank account, there are separate accounts for sites not located at 130 Little Collins Street which total $504,000 in 2013 and $406,000 in The largest of these are the bank accounts for Uniting Camping operations. The bank balance for the Synod is higher at year end as a deposit for the sale of one property was received on 30/12/13 for $450,000. Receivables (Current Assets) are amounts owing to the Synod from debtors (2013: 1,879,000; 2012: $2,110,000), and income due in the current year but not received until the following year (2013: $2,221,000; 2012: $2,415,000). Inventories are the value of goods held for resale. Investments are the amounts invested in the UCA Cash Management Fund. Other is expenses paid in advance. Available for Sale Investments are investments in the UCA Growth Fund. These investments are considered as long term investments and are valued at the market value, with any movements being recorded against the equity (Unrealised Gains Reserve). The value of our investment increased with units valued at $3.89 at the beginning of the year and $4.35 at the end of the year. We held 24.2m units at the beginning of the year which increased in value by $11.1m. The Synod aims to invest 50% of its investments in the Growth Fund. During the year 1.3m units were purchased. Receivables Non Current are loans to church agencies, ministers and students. The decrease from 2012 to 2013 is the repayment of the loan to Acacia College from the proceeds of the sale of the school site and the write off of any remaining balance. Property, Plant and Equipment are the fixed assets held by the Synod, which are properties at 130 Little Collins Street, Grovedale, Church extension sites held for future church development, Synod and Pastoral Assistance Committee manses and the Centre for Theology and Ministry; equipment, furniture and fittings at those sites; and motor vehicles. During 2013 the beneficial use of two church extension sites was transferred to congregations, a reduction in the Synod s assets by $531,000. Liabilities are commitments owed. Trade and other payables consist of: (a) Amounts the Synod owes others (2013: $1,593,000; 2012: $1,665,000); (b) Expenses paid in the following year that relate to the current year (2013: $2,311,000; 2012: $696,000). The increase from 2012 to 2013 was an invoice for consulting fees relating to Uniting our future which was held. (c) Insurance claims owing (2013: $320,000; 2012: 1,312,000); and (d) Income received in advance (2013: $2,728,000; 2012: $2,790,000). The Synod does not operate on an overdraft situation. Section E2 E2.12

13 Provisions include: (a) Staff entitlements which provide for long service leave and annual leave not taken, and potential maternity/paternity leave (2013: $2,171,000; 2012: $2,090,000); (b) an estimate of insurance claims incurred but not reported ($100,000); (c) an amount for loss on underwriting of loans ($1,744,000) which is like a doubtful debts provision on loans made from the Development Fund. This is necessary as the Synod guarantees the Development Fund Loans; and (d) Ministers Long Service Leave provision (2013: $5,104,000; 2012: $4,908,000). Provisions are divided between short term and long term. Short term provisions are amounts due in the next twelve months or where staff/ministers have an entitlement, and long term is over twelve months. Short term borrowings include loans due for repayment in the next 12 months. In 2012 the loan was the UCA funds loan for Acacia College. This was repaid after the settlement of the Acacia site. In 2013 the loans are from Uniting Financial Services and the Development Fund for Acacia College. These loans are due for repayment in These loans have moved from long-term borrowings. The remaining loan term loans are loans for camping operations. Other liabilities include money held in trust in relation to property settlements, pending completion of sale and distribution of proceeds to the appropriate bodies, and the liability owing to the Beneficiary Fund. Is the Synod able to pay its debts when due? Cash held at the end of the 2013 was $1.4m. Investments held in the UCA Cash Management Fund were $108.4m and in the UCA Growth Fund $111.0m. In terms of whether we have sufficient funds to cover our debts in the next 12 months, we need to look at our current commitments against our current assets. In 2013 $116.1m was held in current assets against commitments of $66.4m (a positive cash position of $49.7m). However, as many of our funds are earmarked or have specific criteria according to trust deeds or bequests, we need to consider whether there are sufficient free funds to cover commitments in the next twelve months. If this calculation only includes investments from the Mission Support Fund, Insurance Operations and Unearmarked Synod Funds, we are in a negative cash position by $34.1m. This was the reason we undertook the special circumstances project (Uniting our future). At 25 June 2014 the Church has sold a number of properties and raised funds to enable the loans to be repaid. The remaining sales will replenish Synod Reserves, which have been used as the funder of last resort when Church bodies across the UCA become financially distressed, and to create Ministry Liquidity Reserve to allow for meeting further demands over the next 5 years. Section E2 E2.13

14 What are Synod Funds and Reserves (Equity)? Synod funds represent the net equity of all funds under the control of Synod Commissions and Support Services. This includes not only money but buildings and other assets, less liabilities as listed in the following table. SUMMARY OF SYNOD FUNDS AND RESERVES Ca sh a nd Inve stme nts Prope rty Pla nt a nd Equipme nt Othe r Asse ts Lia bilitie s Unre a lise d Ga ins Rese rve Asse t Reva lua tion Rese rve 2013 T OT AL 2012 T OT AL $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 MISSION SUPPORT FUNDS - NOT DESIGNAT ED Mission Support Fund - Capital 45, (4,646) - 41,282 40,760 Mission Support Fund - income 1, ,690 1,420 47, (4,646) - 42,972 42,180 Mission Support Fund Designated 27, (2,451) - 24,856 21,050 Mission Support Fund Capital 2,974 3, (211) (1,164) 4,986 5,152 Mission Support Fund Other 6, (607) - 5,696 5,025 Unearmarked Synod Funds 6,986-1,433 (33,914) (598) - (26,093) (22,592) T OT AL MISSION SUPPORT FUNDS 90,715 3,387 1,906 (33,914) (8,513) (1,164) 52,417 50,815 OTHER EARMARKED FUNDS Centre for Theology and Ministry 7, (488) - 6,638 6,192 Support Services 18,283-2,387 (3,022) (404) - 17,244 17,180 Commission for Mission 19,928 8, (1,756) (818) (1,004) 24,860 22,235 Congress Victoria 2,547 3, (166) (150) 5,417 5,170 Congress Tasmania 1, , Other Specific Funds - - Education Bursaries 2, (361) - 1,758 1,606 Pastoral Assistance 5,916 2, (89) (534) (1,033) 6,916 6,594 Property & Equipment Reserve 4,587 20,924 - (360) (267) (2,825) 22,059 21,977 Other 2, (153) - 2,552 2,930 Long Service Leave Staff 1, (1,752) (187) - 53 (88) Ministers Long Service Leave 5, (5,013) (1,056) - (648) (459) T OT AL OT HER EARMARKED FUNDS 71,604 34,772 3,090 (11,992) (4,418) (5,012) 88,044 84,298 Bequests managed by the Property Trust 38, (291) (6,087) - 32,423 31,960 Pooled Assets 19,790-2,269 (22,059) T OT AL SYNOD and BEQUEST FUNDS 220,910 38,159 7,265 (68,256) (19,018) (6,176) 172, ,073 Asset Revaluation Reserve ,176 6,176 6,380 Unrealised Gains Reserve ,018-19,018 7,953 T OT AL SYNOD FUNDS AND RESERVES 220,910 38,159 7,265 (68,256) , ,406 Section E2 E2.14

15 What's the situation with Free Synod Funds? Free Synod Funds (or Unearmarked Synod Funds) recorded a deficit of $3.501m in 2013 compared to $23.732m in The deficit in 2012 relates to write off of the loans and recognition of liabilities in relation to the closure of Acacia College ($25.8m). Standing Committee reviewed the adequacy of various reserves and decided to transfer $2m from the Car Loan Fund and $337,900 from the PAC HEF Fund. Grants were also paid to Uniting Housing Victoria of $342,000 and an amount was set aside due to the commitment to the Department of Housing for $345,000. For 2013 further costs were incurred for Acacia College $2.440m, consultancy and other costs related to the Wesley Upper Lonsdale Street proposal $453,000, Ormond College bequest restitution $484,000, and Uniting Housing $190,000 The total equity at the end of 2013 is ($26.093) The result for the Mission Support Fund is provided within the BOMAR report. Section E2 E2.15