2 Vision & Strategy 2.1 The Diocesan Vision and Strategy was debated and approved at the Diocesan Synod meeting held on 12 March 2016.

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1 Agenda Item: S/16/18 ` Report To: Bishop s Diocesan Council Date: Report By: Director of Finance Background Papers: Strategic Links: Title: 2019 Budget and Common Fund Our Vision and Strategy (Diocesan Synod, 12 March 2016 paper S/02/2016) Budget Strategy 2019 (Bishop s Diocesan Council, 14 May 2018 paper BDC/16/18) Our Vision and Strategy Shrinking the Footprint Schools Strategy 1 Purpose 1.1 The purpose of this paper is to seek Diocesan Synod approval of the budget for 2019 for the Exeter Diocesan Board of Finance (EDBF), which was recommended for approval by the Bishop s Diocesan Council (BDC) on 18 July Vision & Strategy 2.1 The Diocesan Vision and Strategy was debated and approved at the Diocesan Synod meeting held on 12 March The Vision is what we would like the future to look like and the Strategy sets out how we seek to work together in Mission Communities to enable this to happen. It is vital that our financial planning reflects our priorities, while at the same time we must continue to meet our necessary statutory and operational requirements and ensure that current services can continue to be provided until any reviews are completed. Diocesan Synod Page 1 Agenda Item S/16/18

2 2.3 Our Vision I know the plans I have for you, says the Lord, plans for your welfare and not for harm, to give you a future with hope. Jeremiah We seek to be people who together are: Growing in prayer; Making new disciples; and Serving the people of Devon with joy. 3 Budget structure for This report shows in Appendix 1 how it is proposed that each budget is allocated for 2019 (along with a comparison figure for 2018). The main changes to the budget for 2019 are outlined in Section 8, below. 3.2 Where significant changes are proposed to the budget, any funding source associated with that change is identified. Mission & Growth Fund bids 3.3 The following bids have been previously approved by Diocesan Synod: Growing the Rural Church New Housing Areas 420,000 Supporting Local Mission Resourcing churches in Plymouth 800,000 (over 7 years) 250,000 (now fully spent) 200,000 (over 5 years) The funds required for the above projects have been transferred from the unrestricted reserves to a designated fund and therefore do not form part of the discussion over the budget for Key Assumptions 4.1 The BDC endorsed the key assumptions at the meeting held on 14 May These are summarised below: An increase in the Common Fund request per participant of 3.5% see section 5, below; A shortfall in Common Fund received of 5.25%; The budget to provide for whole time equivalent Mission Community stipendiary posts; Inflation to only be built into those budgets where an inflationary increase is anticipated; Diocesan Synod Page 2 Agenda Item S/16/18

3 Clergy stipends continue to be paid at a level equivalent to the Regional Stipend Benchmark (with any increase being applied from April 2019); and Include a contingency for a lay staff salary increase for July 2019 in line with the underlying level of inflation assumed in the Finance Plan. 5 Common Fund Request The original sum requested from parishes in Common Fund contributions for 2018 is 9,360,797. Following agreed in-year changes resulting from exceptional appeals, the revised request is 9,323,381. One of the principal assumptions for the 2019 budget is once again around the level of Common Fund that can reasonably be requested. This is now the starting point for the budget process and drives the sums that can then be spent across all diocesan budgets in delivering and supporting the diocesan mission. 5.2 The table below shows the Common Fund collection rates for previous years: Year Amount Requested Amount Received (up to 28/02*) Percentage Collection % Final Amount Received Percentage Collection ,542 8, , ,790 8, , ,882 8, , ,693 7, , ,050 8, , ,153 8, ,155 8, , ,247 8, , ,175 8, , ,169 8, , , *Please note that the 28/02 date is the one used each year as the cut off against which contributions are taken back to the previous year s accounts. % 5.3 The year-to-date position (as at 31 August 2018) on the collection of the 2018 contributions is currently 2.4% higher than at the same stage last year. Diocesan Synod Page 3 Agenda Item S/16/18

4 Request per participant 5.4 One of the key elements within the Common Fund calculation is the amount per participant, as this makes up the bulk of the amount requested from each parish. With effect from 2016, the request was based on any increase being applied to the actual (declared) participant numbers (using the Band A equivalent). 5.5 The figure requested per participant from a parish in band A for 2018 is per annum. There is then a 5% discount applied for each socioeconomic band below band A, e.g. the calculation for a parish in band B is x 95% = , and so on. Socio-economic bands for parishes are derived from the index of multiple deprivation provided by the government, as mapped onto parishes by the Statistics Unit at Church House (Westminster). 5.6 There is, however, a need to raise the level of funding for mission within the diocese if we are to achieve the aim of our shared Vision & Strategy. The following increases in Common Fund are therefore proposed over the next five years. Year New assumption (per participant) % % % % % This should be seen in the context of a current annual inflation assumption of 2.5% per annum. 5.7 Based on the above assumption, the amount to be requested per participant from a parish in Band A for 2019 will be x 3.5% = The majority of declarations of participant numbers from parishes have now been received, although the final declared number will not be known until after the paper for Diocesan Synod is prepared (by the date this paper was prepared, around 7% of parishes have still to send in the form that was due to be returned to the Rural Dean by 9 July). Diocesan Synod Page 4 Agenda Item S/16/18

5 The original assumption approved by BDC was for no growth or decline, which would have led to a total request for 2019 of 9,650,000 (compared to 9,323,381 for 2018). To date, the number of participants declared has actually fallen by 1.5% (which is in line with the long term average rate). The actual figure will be based on the final declared number of participants. The result of the lower number of participants is a reduced request of 120,000. A further update will be provided at the Diocesan Synod meeting. 5.9 In addition, the Index of Multiple Deprivations (IMD) scores have been updated to use the latest data from Diocesan Synod agreed that the latest figures should be used each time they are published. The impact of this is that 32 parishes move up to a higher band (so will be asked for more) and 127 move to a lower band (so will be asked for less). The overall impact is that approximately 90,000 less will be requested as a result of this change. All of the parishes moving up a band have been written to by the Director of Finance to give them advance notice of the higher than anticipated request, so that provision can be made when setting the PCC budget for Common Fund Shortfall 5.10 The level of assumed shortfall in the Common Fund received is also a key assumption and, as can be seen in the table at section 5.2, above, this had deteriorated until 2012, when a gradual improvement began to show. This has fallen back again in the last few years. The table, below, shows the shortfall assumptions proposed in the current plan. The assumed improvement in the collection rate will continue until a collection rate of 96% is reached. Year Annual Common Fund Shortfall % % % % % 5.11 As a result a Common Fund shortfall budget of 5.25% will be established for Common Fund review 5.12 A group has been set up by the Chair of the Board of Finance to take forward the motion approved by Diocesan Synod in March 2016 to undertake a Diocesan Synod Page 5 Agenda Item S/16/18

6 review, with the aim of reporting within the current triennium of the current Diocesan Synod The current timetable for the review process is as follows: Initial conversation at Diocesan Synod held on 17 March 2018 Consultation with Deanery Synods in summer/autumn 2018 Final report to Diocesan Synod in March 2019 Implementation of any changes or new system from January 2020 Parish Giving Scheme 5.14 The Parish Giving Scheme was formally launched across the diocese in the autumn of 2014 (following the pilot), with the main launch event being held in March As at 1 September 2018, 188 parishes across the diocese are receiving funds (with the associated gift aid) on a monthly basis. The annual value of these donations to parishes is currently equivalent to just over 2 million with this figure increasing each month, as more churches/people join. The PGS continues to grow nationally and is proving to be a fantastic scheme, with 24 dioceses now being members. The total annual amount currently being gifted to churches through the scheme is now approaching 32 million per annum, so this is undoubtedly a real success story within the Church of England. The parishes with the most individual donors within our diocese are shown in the table below: Parish Number of donors Littleham-cum-Exmouth 75 Tiverton, St George & St Paul 75 Torquay, St Matthias 74 Tavistock 72 Wembury 48 Plympton, St Mary 47 6 Income Budgets for 2019 Investment Income 6.1 The income from the investments held with CCLA and M&G has remained fairly consistent over recent years, despite the economic and market conditions. Whilst income has held up reasonably well, there has also been an increase in the capital value of the investments in each of the previous three years. The investment income expectation for 2019 can be increased by 30k to reflect the current rates being achieved (although predicting this figure with any long term certainty remains challenging). Diocesan Synod Page 6 Agenda Item S/16/18

7 Glebe Income 6.2 There are two elements to the glebe income received income from the glebe land and also from the lease of the commercial properties (purchased with the proceeds from previous sales of glebe land). The income received from glebe land can be increased to accommodate the impact of rent reviews undertaken in the previous 12 months. The budget expectation for 2019 will be 315k (2018: 285k). Feed in Tariff Income 6.3 In 2012 photovoltaic cells were fitted to 32 parsonages. These are now generating income of 30k per annum in feed-in and export tariffs. After allowing for depreciation and loan interest charges, the net income received is 13k. 6.4 The 2019 budget for income from investments, glebe and feed-in/export tariff is 1,298,829 (2018 = 1,243,994). Grants from the Archbishops Council 6.5 The level of grant funding for 2019 will again be lower than the previous year, as the funding provided by the Archbishops Council is re-shaped to focus more on providing strategic development funding and less on providing pure financial support. The figure for 2019 will be 1,264,592 (2018: 1,279,932). 6.6 In addition to the above funding, the Diocese of Exeter will also be able to draw down additional funds of 424k over the next two to three years, in order to support the restructuring process. Each diocese has received an allocation. The Bishop s Staff team has agreed how this funding will be allocated and proposals will be submitted to the Archbishops Council in due course. For 2019, there are two new posts that will be funded from this allocation namely the recently appointed Lay Discipleship Project Manager and the part time Mission Resources Assistant Adviser (currently being advertised). These two posts will draw down funding of 99k in The Diocese has just received confirmation of its successful application for Strategic Development Funding (SDF) for the exciting church planting project in three outer estates in Plymouth. This will draw down funding over the next five years of approximately 1.7m, against the total project cost of 2.2m. In October 2017, Diocesan Synod agreed to set aside 200k from unrestricted reserves towards this project, with the balance coming from existing resources. One element of the project cost is the appointment of a Strategic Programme Manager, to oversee the delivery of this project and also to support the delivery of the Diocesan Vision & Strategy. The funding for this post will effectively come through the SDF money. Diocesan Synod Page 7 Agenda Item S/16/18

8 Rental income from clergy housing 6.8 The income received from renting out vacant clergy housing is still performing strongly, so an increase in this budget is proposed for 2019, taking it to 890k (2018: 800k). It should be noted that the maintenance costs associated with these properties is now being netted off the income, to bring this budget in line with the way in which the glebe budgets are reported. Parochial fees 6.9 Following approval at General Synod, major changes and increases to the statutory fees were introduced from 1 January It has taken a while for the new system to settle down with the significant increase in the fees being offset to some degree by a fall in the number of funerals and weddings taking place in church. The budget for 2019 is expected to be 707k (2018: 700k). It should be noted that the statutory fees usually increase each year in line with the Retail Prices Index (RPI) for each September, which is the reason for the increase in the budget for Expenditure budgets for 2019 Clergy numbers and stipends 7.1 There are a number of elements within the calculation of the stipendiary clergy budget: EDBF does not pay the bishops stipends, or the housing costs of the Diocesan Bishop; these costs are covered by the Church Commissioners; There are four Archdeacons posts in addition to the number of posts shown in the table at Section 7.10, below. Stipendiary Clergy numbers 7.2 For a number of years, the diocesan budget has assumed a reduction in Mission Community (MC) stipendiary clergy from the current level of c.180 FTE stipendiary MC posts (including vacancies) to 130 by the end of Bishop s Staff has discussed how to achieve such a reduction in stipendiary posts across the Diocese in a way which is both fair and missional, taking into account the variety of the rural and urban contexts we serve, and the realisation that Plymouth has been under-resourced in recent years. 7.3 As a first step, Bishop s Staff and the Bishop s Strategy Group have agreed a reduction to FTE stipendiary MC posts (including vacancies) by the end of 2024, with the following allocation for each Archdeaconry: Diocesan Synod Page 8 Agenda Item S/16/18

9 Barnstaple: 28.5 Exeter: 56.5 (including Cranbrook) Plymouth: 39.0 (including Sherford) Totnes: 39.5 TOTAL: Within each Archdeaconry, any increase in stipendiary provision in one MC will need to be balanced by a decrease in another MC. Requests for an increase in the total allocation for an Archdeaconry would need to be decided by Bishop s Staff, before ultimately being approved by Bishop s Diocesan Council through the annual budget setting process. In , by which time the progress of our current growth initiatives will be clear, further discussion will need to take place about whether to implement further reductions below posts. 7.5 To agree this target of posts by the end of 2024, five weighted factors (population 30%; participants 30%; number of church buildings 15%; area 10%; deprivation 15%) were applied to a total of 155 posts (the midway point between our current level of c.180 posts and 130 posts by 2031). This was then adjusted upward in Exeter and Plymouth Archdeaconries in the light of a) the under-resourcing in Plymouth and b) specific missional needs in urban areas, including large-scale new housing areas, such as Cranbrook and Sherford. 7.6 Further conversations are required for the period after 2024, but for the time being a reduction of 3 posts per annum has been assumed in the period 2025 to In addition to the above posts, there are four archdeacons and it should also be noted that the above figures do not include the Bishops, Bishop s Chaplain or the Dean of the Cathedral. The table at section 7.10 below does not include Self Supporting Ministers. Funding 7.8 If provision is to be made for the higher than previously anticipated number of stipendiary clergy by 2024, then it will require a different approach to funding the plan during this period. The revised number by 2024 is 9.75 stipends higher than previously agreed and would create an additional funding requirement of approximately 1.5m during the period 2019 to The impact on the finance plan of the above additional funding requirement would reduce the unrestricted reserves to below the minimum recommended level of 25%, so a solution is required before the revised deployment plans can be signed off. Diocesan Synod Page 9 Agenda Item S/16/18

10 Year Level of unrestricted reserves Based on 2018 plans Level of unrestricted reserves Based on 2019 plans Unrestricted reserves as a % of budget Based on 2019 plans ,485k 3,182k 23% ,778k 2,551k 17% ,467k 3,943k 23% 7.9 There are a number of ways of addressing the funding gap: 1. Develop an alternative deployment plan that is more affordable; 2. Dispose of assets, to increase the value of the unrestricted funds by the required 1.5m; 3. Explore the adoption of the Total Return approach for investment assets to release funds; 4. Make sufficient new disciples to change the financial balance (see section 3.3, above); 5. Look for savings elsewhere within the budget by ceasing to provide some services; or 6. A combination of the above As the level of unrestricted reserves is expected to be just below the minimum level in 2019, BDC previously agreed to accept this position and then take some time to establish a clear plan for the period , looking at the options above in more detail. The 2019 clergy budget will include the following posts: Post title Mission Community ministry WTE Stipendiary clergy posts, including vacancies, in 2019 budget WTE Stipendiary clergy posts, including vacancies, in 2018 budget Reason for change Reduction in line with Finance Plan and agreed Deployment Plan Title posts (curates) No change TOTAL number of posts paid from the stipend budget Diocesan Synod Page 10 Agenda Item S/16/18

11 7.11 The assumed vacancy factor is 9%, meaning that there will be an average of WTE clergy in post and receiving a stipend. Stipend increase At Diocesan Synod in October 2012, it was agreed that EDBF would pay stipends at the Regional Stipends Benchmark (RSB). However, this measure has now been discontinued and the Archbishops Council provides data on a potential new cost of living tool. Their guidance suggests that the most appropriate measure is the weekly expenditure differential and for the Diocese of Exeter this is currently When setting the 2018 budget, BDC and Diocesan Synod approved the uplift of the previous regional stipends benchmark figure by the same percentage as the uplift in the National Stipends Benchmark. The current National Stipend Benchmark (NSB) is 25,950 and the initial indication is that this will rise by 2% from 1 April 2019 to 26, Following the above methodology for the 2019 budget will give a stipend within the Diocese of Exeter of 26,640 (2018: 26,120) from 1 April Clergy pension contributions 7.15 For 2018 an allowance was included for those clergy in post who are already in receipt of a clergy pension. In those cases there is no continuing requirement for EDBF to make employer contributions for these clergy. This was estimated at 20k for This will continue to be reviewed each year, but there has been a small increase in the number, so an allowance of 28k has been included for As a result of the impact of the change to accounting treatment for the clergy pension scheme (see section 11, below), the actual budgeted amount required for clergy pensions can be reduced by 600k. This sum is, however, still required, as the general unrestricted fund effectively needs to repay the amount originally taken from the Diocesan Stipends Capital Fund to cover the deficit. This is treated as a Transfer between Reserves, so appears below the line at the end of the year. Diocesan Synod Page 11 Agenda Item S/16/18

12 Apprenticeship Levy 7.17 The apprenticeship levy is applicable to the clergy payroll, as all stipends are paid centrally (thereby exceeding the threshold). A contribution of 22,750 per annum is required. The National Church is currently developing plans for using this money. Resourcing ministerial education 7.18 The Renewal & Reform programme expresses the need (derived from diocesan consultation responses) for a significant increase in the number and quality of ministerial leaders, lay and ordained. There is an intention to promote candidates for ministry who are younger, more diverse and with a wider range of gifts. It is expected there will need to be an increase of at least 50% in ordinations on 2013 figures sustained annually from 2020 as well as the rapid development of lay ministries. This will eventually place significant additional funding pressure on our budget for which provision will need to be made in future years As discussed in the Budget Strategy paper for 2018, it is not currently possible to increase the number of stipendiary curacies from the current 28, so any increase will need to come from an increased number of Self Supporting Ministers curacies. This will be reviewed in future years. Lay staff levels, salaries and related issues 7.20 The actual cost of living increase in lay staff pay will be determined late in the spring of 2019; once an assessment has been made of the current economic situation and taking into account the state of the employment market. For the purpose of setting the budget for 2019 a provision has been included at the anticipated 2.5% rate of inflation for July Lay pensions 7.21 The Board of Finance runs two pension schemes for lay staff, both through the Church Workers Pension Fund: The Defined Benefit (DB) section closed to new staff since This is a classic defined benefit scheme; and Pension Builder Classic (open to all staff). This is a hybrid scheme, but is essentially a defined contribution scheme The Board has received the most recent actuarial valuation for the DB section, which is as at 31 December 2016 and shows that the deficit has increased by Diocesan Synod Page 12 Agenda Item S/16/18

13 approximately 1m. This increased deficit was provided for in full through the Financial Statements for the year ended 31 December In addition to the increased deficit, the required employer s contribution rate would need to increase from the current 30% of salary to 44.3%, which would add 100k per annum to the cost of providing this scheme The Standing Committee considers this to be unaffordable in the longer term, so has started a consultation process with those lay staff who are still members of the DB scheme (23 current members). A formal consultation process will be held in September 2018, when a number of different options will be explored. At this stage no provision has been made in the 2019 budget for the additional cost of the scheme, pending the outcome of the consultation The proposed lay staff budget for 2019 will increase by a total of 150k (with 45k coming from unrestricted reserves and 105k from other funding sources). This includes the following changes to the staffing structure: Provision for lay staff pay award from July 2019 (see 7.20, above); The newly appointed Lay Discipleship Project Manager ( 45k is required funded from Transitional funding); A restructuring of the Communications Team ( 20k is required); The appointment of a Strategic Programme Manager ( 60k is required funded from SDF); The appointment of a Mission Resources Assistant Adviser ( 28k is required funded from Transitional funding); Additional HR support ( 10k is required); Restructuring of Pastoral Reorganisation Team ( 15k is required); Restructuring following retirement of Director for Church & Society ( 30k saving). Clergy housing 7.25 The standard and level of work undertaken is determined by a detailed policy which is regularly reviewed and is the responsibility of the Parsonages Committee. Also, over the last four years there has been a year-on-year increase in the number of in-going schemes (preparing housing for new clergy occupation). Diocesan Synod Page 13 Agenda Item S/16/18

14 7.26 The clergy housing budgets are reviewed in detail each year with the Director of Property Services and the following changes are proposed for 2019: Increase of 30k in the budget for planned maintenance, based on the projected number of quinquennial reviews and in-going schemes; Decrease of 10k in the responsive maintenance budget; Decrease of 10k in the cost of renting in clergy properties; Reduction in income from recharging of clergy housing (for sector ministries, which have now finished) of 5k In addition to the clergy housing budgets identified above, there is a further budget of 130k which is used for major works and/or supporting the provision of new/replacement housing. As these works increase the value of the asset, there is no impact on the revenue budget. Additional income opportunities 7.28 Within the budget there are three areas where income is being generated through the selling of services to church schools and the cathedral. The level of income received in 2017 and so far in 2018 has been carefully analysed and the only change is in respect of the safeguarding contract with the cathedral: Property Services 150,000 (2018: 150,000) Education Services 110,000 (2018: 110,000) Safeguarding Services 15,000 (2018: 0) Inflation 7.29 Inflation has only been added to those budgets where there is a clear need, i.e. those where expenditure is subject to an external price rise, or part of contract expectations. The general aim across most general expenditure budgets will be for budget holders to manage the inflationary increase within existing resources. Where will the money be spent? 7.30 Attached in Appendix 1 is a summary showing the areas to which the budget will be allocated. Diocesan Synod Page 14 Agenda Item S/16/18

15 8 Summary of main changes to budget 8.1 The proposed expenditure budget for 2019 is 411k higher than This equates to an increase of 3.1% (against an estimated inflationary level of 2.5%). The key elements contributing to this increase are as follows: Stipend Increase 136k Reduction in clergy numbers ( 60k) Increase in number of schemes on clergy housing 30k Increase in Archbishops Council contributions 27K Lay staff cost of living contingency 50k Impact of pooling adjustment (ordination training) 65k Lay Discipleship Project Manager 45k Mission Resources Assistant Adviser 28k Strategic Programme Manager 60k Communications 20k Pastoral Reorganisation 15k Church & Society ( 30k) HR support 10k Registrar retainer 10k Grants to married ordinands 30k Contingency 30k Other miscellaneous adjustments ( 55k) 8.2 The impact of the pooling adjustment for ordination training is the adjustment associated with the sharing nationally of the cost of ordination training. An adjustment is made each year for the actual costs incurred across the country in the previous year, with these being shared proportionately across all dioceses. It is an unpredictable figure and can have a significant impact in some years. 9 Budget summary 9.1 The expenditure budget anticipated within the updated Finance Plan for 2019 (as agreed at the BDC meeting held on 14 May 2018) is million. The income budget expectation was million. On this basis the Finance Plan for 2019 therefore assumed a contribution from reserves of 295k. 9.2 The proposed expenditure budget for 2019 is million. This is 333k lower than the Finance Plan previously assumed, although a sum of 600k will need to be transferred between reserves for the clergy pension fund deficit Diocesan Synod Page 15 Agenda Item S/16/18

16 contribution (see section 10, below), giving a revised figure that is 267k higher than the Finance Plan. 9.3 The proposed income budget is million before any contribution from reserves is taken into account, which is 70 lower than the Finance Plan assumption. 9.4 As a result of the above, the revised contribution required from reserves will be 632k in 2019, of which 20k will come from a designated reserve. This gives a revised contribution from unrestricted reserves of 612k, which is 317k higher than in the Finance Plan. 9.5 Appendix 2 shows the summary budget. 10 Pension Fund Deficit Accounting Treatment 10.1 With the introduction of Financial Reporting Standard (FRS) 102 for accounting periods starting on or after 1 January 2015, there were significant changes to the treatment of pension fund deficits. EDBF has two pension schemes that are affected by this accounting change: The Clergy Pension Scheme; and The Church Workers Pension Scheme (lay staff) 10.2 The effect of the accounting change is that the total (actuarial) assessed deficit for each fund is now held as a liability on the balance sheet. This had the effect of reducing the reserve figure in each case when the deficit was first established: Diocesan Stipends Capital Fund (for the clergy scheme); and Unrestricted reserves (for the lay scheme) 10.3 For each scheme there is an agreed deficit recovery plan, which involves additional contributions being made to specifically cover the deficit. As the liability is now held on the balance sheet, this contribution is now effected as a transfer between reserves, so is charged after the surplus/deficit is calculated for the year. The contribution is therefore still required, but is not part of the main income/expenditure budget (see Appendix 2). 11 Reserves Policy 11.1 The Charity Commission no longer recommends the level of reserves that a charitable organisation should hold, with each charity now required to Diocesan Synod Page 16 Agenda Item S/16/18

17 determine the appropriate level, based on its own needs. The previous recommendation was in the range 25 30% of the annual expenditure budget and this is felt to be appropriate for the Diocese The level of unrestricted reserves (as at 31 December 2017) is currently within this range at 3.9m. However, with an assumed requirement for use of reserves in 2018 of 638k, the level is expected to be marginally below this by Approval Sought 12.1 At the meeting held on 18 July 2018, BDC recommended that: (1) The Common Fund request per declared participant (Band A) for 2019 is increased by 3.5% over the 2018 figure; (2) The use of a 5.25% figure for the Common Fund shortfall for 2019; (3) The provision for whole time equivalent stipendiary clergy posts in the budget for 2019; and (4) A stipend of 26,640 should be paid from 1 April Recommendation 13.1 The Diocesan Synod is asked to approve the 2019 budget. To seek clarification on any aspect of this report in advance of the meeting please contact: Name: Job Title: Neil Williams Director of Finance Phone: neil.williams@exeter.anglican.org Diocesan Synod Page 17 Agenda Item S/16/18

18 Clergy and related budgets Budget area Where will the money be spent? 2019 budget APPENDIX budget Stipend (less recharges/income) 4,944 4,882 Clergy national insurance Clergy pension 1,188 1,182 Apprenticeship levy Clergy housing costs 1,607 1,571 Council tax Water rates Archdeacons offices University chaplains Grants and removals Clergy Human Resources Administration and other costs Cranbrook Total 9,354 9,220 Mission & Ministry Budget area 2019 budget 2018 budget Vocations Ministry selection and training IME National Pooling (married ordinands) Reader training Clergy leadership programme Clergy conference provision Lay training/education Pastoral care Worship development Ecumenical relations 8 8 County show 2 2 Diocesan Synod Page 18 Agenda Item S/16/18

19 Mission & Ministry Budget area 2019 budget 2018 budget Ministry among deaf people 6 6 International links Mustard seed grants 5 5 Mission development and support* Mission resources (stewardship) support Mission community development Children and youth advisers Ministerial Development Reviews 8 8 Evangelism/Mission Enabler* Lay Discipleship 57 - Administration and other costs Total 1,481 1,289 Education and Educational Chaplaincy Budget area 2019 budget 2018 budget Strategic Overview & Quality Assurance School improvement and support Admissions and governor support Chaplaincy support Business Growth & Development Administration and other costs Total Church School Buildings Budget area 2019 budget 2018 budget Total Diocesan Synod Page 19 Agenda Item S/16/18

20 Church & Society Budget area 2019 budget 2018 budget Social inclusion Church and community Community ministry 2 2 Christian ecology 2 4 Shrinking the footprint Healthy and integrated communities Global thinking, local living 6 6 Liaison with strategic partners 4 8 Administration and other costs Total Central & Support Services Budget area 2019 budget 2018 budget Safeguarding* Finance* Communications/website Diocesan Advisory Committee Pastoral Admin Committee Church Building Strategy Committee Human Resources* Disclosure and barring service Diocesan database GIS mapping Supporting Bishop s Diocesan Council Supporting Assets Group Supporting Diocesan Synod Supporting General Synod New housing areas Acting as Custodian Trustee Board of Finance costs Liaison with national church Diocesan Chancellor and Registrar Governance and management^ Administration and other costs Diocesan Synod Page 20 Agenda Item S/16/18

21 Central & Support Services Budget area 2019 budget 2018 budget Total 1,300 1,173 *Please note these increases/decreases result purely from a change in the allocation of staff time to these service areas. ^ Governance and management includes the Strategic Programme Manager. Central Church costs Budget area 2019 budget 2018 budget Training of ordinands Other payments to the central church Please note that in all of the above tables where administrative staff work directly for a service, their time is charged to that service. Administration and other costs include each service s share of the overhead cost associated with the offices (e.g. IT costs, heat & light, etc.) and the costs for those smaller value services not shown elsewhere. Diocesan Synod Page 21 Agenda Item S/16/18