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									                          GS Misc 894




  INTO THE NEW QUINQUENNIUM:
SECOND PROGRESS REPORT FROM
   THE ARCHBISHOPS’ COUNCIL
                                        Introduction

Into the New Quinquennium (GS 1607), which Synod debated in February 2006 set out for the
first time a five-year programme of what the National Church Institutions and the General
Synod intended to deliver to support dioceses and parishes in their mission and ministry.

Last year I circulated a report (GS Misc 847) on what had been achieved in the first twelve
months. A year further on the Council has now approved this second progress report.




William Fittall
Secretary-General
May 2008
1. THE WORK OF THE GENERAL SYNOD

Legislation

   The Dioceses, Pastoral and Mission Measure and associated Amending Canon and
    Amending Regulation which give effect to the Toyne Review of the Dioceses, Pastoral
    and related Measures — what the Archbishop of Canterbury called in his Presidential
    Address ‗a principled and careful loosening of our structures‘.
   The Ecclesiastical Offices (Terms of Service) Measure, Ecclesiastical Offices (Terms of
    Service) Regulations and associated Amending Canon, to give effect to the
    recommendations of the Review of Clergy Terms of Service (the McClean Review).
   Subject to the decisions the Synod is due to take in February, legislation to remove the
    legal obstacles to the consecration of women to the episcopate.

Other exercises which may lead to the need for legislation include:

   The review of parochial fees.

   Further consideration of the law relating to clergy discipline in matters of doctrine,
    ritual and ceremonial.
   Review of marriage law in relation to where marriages may be solemnized.

   Consideration of the Windsor Report‘s proposal for a brief ‗Communion law‘ and some
    form of ‗Covenant’ for relationships within the Anglican Communion.

   Accounting guidelines for PCCs.
   The review of synodical election processes.




Ecumenical Relations

   The report of the Anglican/Methodist Joint Implementation Commission in 2008,
    which will consider how the covenantal relationship can be developed.
   The report of the Anglican/Baptist Conversations due for debate by the Synod in 2006.


   A probable Synodical debate on Anglican Roman relations focusing, for example, on the
    ARCIC report on Mary: Grace and Hope in Christ.




2
                                                                    Progress made in 2007




   Received the Royal Assent in October 2007 and being implemented in stages.




   Draft legislation introduced for First Consideration in February 2007 and returned to the
    Synod for revision in February 2008.

   The drafting group, chaired by the Bishop of Manchester, reported to the House of
    Bishops in May and the report will be debated by Synod in July.




   The working group reported to the Synod in February 2008 when draft legislation giving
    effect to its recommendations was introduced for First Consideration.
   The House of Bishops Standing Committee will be considering further.

   The Marriage Measure was given Final Approval in July 2007 and has been deemed
    expedient by the Ecclesiastical Committee of Parliament.
   Synod debates in July 2007 and February 2008.


   Church Accounting Regulations made at July 2006 Synod .
   Elections Review Group established under the Business Committee. The Business
    Committee is expected to bring a report to the Synod with proposed changes to the Church
    Representation Rules and the Clergy Representation Rules in 2008.




   Interim report debated at Synod in July 2007. First 5-year report scheduled for July 2008.

   Commended for study by Synod in February 2006 and for study throughout the Church of
    England and further discussion with the Baptists. Study guide drafted and awaiting
    finalization before publication.
   Debate on IARCCUM report Growing Together in Unity and Mission, February Synod
    2008. House of Bishops to consider ARCIC report on Mary before debate at Synod.




                                                                                                3
Reports

   A Review of Senior Church Appointments is due to report to the Synod in 2006, with
    recommendations about the appointment process for suffragan bishops, deans,
    archdeacons and residentiary canons.



   The Report of the Commission on Urban Life and Faith is due for publication in the
    first half of 2006.
   Other reports will include schools, higher and further education, hospital chaplaincy
    and financial strategy.




4
                                                                  Progress made in 2007



   The report and changes proposed in a Government Green Paper were debated at the July
    2007 Group of Sessions. Draft legislation dealing with aspects of the proposals will be
    introduced at the July 2008 Group of Sessions following decisions at February Synod
    2008.

   Discussed by Synod at the July 2006 Group of Sessions. Further report made to Synod in
    July 2007.
   Pushing Further, a report by the Board of Education, was debated by Synod in July 2006.
    Aiming Higher published and circulated to Synod in July 2007 and in process of
    implementation.




                                                                                              5
2. THE WORK OF THE ARCHBISHOPS’ COUNCIL

Ministry Division

   Secure the achievement of the target increase in younger vocations, to be agreed
    following the Archbishop of Canterbury‘s proposal in his Presidential Address. The plan
    for this, already in development, will be agreed, and implementation started, in the course
    of 2006.


   Put in place new arrangements to train ministers for evangelism in all its forms through
    ordained pioneer ministries by 2006/7.




   Guide the new terms of service for clergy based on common tenure (the McClean
    report) through Synod. The Measure will be introduced in 2006 and the Ministry division
    will be closely involved in planning its implementation and providing support for dioceses
    in preparing for the major changes involved.

   Respond to the call of the Archbishop of Canterbury in his Presidential Address for a
    commitment ‗to improving theological education for the whole people of God‘ and the
    need for Synod ‗to show that theology doesn‘t kill you‘ by aiming for excellence in the
    training of clergy and Laity going into licensed ministry, through the flexible but effective
    implementation of the key principles set out in Formation for Ministry in a Learning
    Church. This will mean the development of regional partnerships across the country,
    facilitating rationalisation of colleges and courses, reviewing (by summer 2006) the
    present fee regime for training institutions and grant support for candidates, and working
    to raise standards through the introduction (by 2008) of a new quality and accountability
    framework for theological education.

   Conduct a review of clergy remuneration arrangements in time for decisions to be
    made in the second quarter of 2007.



   Run sufficient selection conferences each year for the number of ordination candidates –
    currently up to 52 a year for up to 832 candidates.




6
                                                                 Progress made in 2007




   The House of Bishops agreed in October 2006 steps to achieve an objective of achieving,
    by the end of 2010, an increase to 145 in the number of candidates under 30 being
    recommended for training. In 2007, 185 candidates under the age of 30 were
    recommended.


   The pilot scheme run by Ridley Hall and two central London churches continued during
    2007. Training of this type is now also being carried out by St Mellitus College in
    London. Some colleges and courses have developed specialist pathways for training
    pioneer ministers. At November 2007, there were 43 OPM candidates in training
    (November 2006: 25)

   Ministry Division is closely involved in implementation planning and providing support
    for dioceses in preparing for the major changes involved.



   Development of effective regional training partnerships continued. Some of the new
    arrangements have led to new and imaginative training pathways for individual ordinands.
    New structure for Ministry Division committees agreed and implemented.
    New simplified block grant system for colleges and courses approved and transitional
    arrangements put in place for 2007/08 academic year. Full implementation from 2008/09.
    New quality and accountability framework for theological training approved by the House
    of Bishops.
    Work continued on implementation of Shaping the Future.
    Guidelines for choice of training pathways approved by House of Bishops. Projected
    introduction in September 2008.
   Early stages of the remuneration review revealed serious pension funding issues. Staff
    resources concentrated on researching, developing and consulted on the changes to the
    pension scheme approved by Synod in July 2007. A review of the support provided to
    clergy who need help with housing when they retire is underway.

   In 2007, the Division ran 51 Bishops‘ Advisory Panels, attended by 726 candidates (2006:
    712).




                                                                                              7
Mission and Public Affairs

   Work with the dioceses to take forward the agenda set by Mission-shaped Church, in
    partnership with Fresh Expressions. Follow up the suggestion made by the Archbishop of
    Canterbury in his Presidential Address that Synod remind itself annually of progress by a
    report or celebratory event ―so that it may measure its work against the background of
    these new signs of what God is doing‖.
   Pursue other mission activities including launching web based resources, through the
    Mission Theology and Advisory Group, to assist engagement with contemporary
    spiritualities, delivering the targets set out in Sharing the Good News with Children, take
    forward the Youth Evangelism Fund, and follow up the six opportunities Identified in
    Presence and Engagement in support of churches witnessing in areas of significant other
    faith communities.
   Draw up, by mid-2006, plans to build on the report of the Commission on Urban Life
    and Faith and continue to support the Church Urban Fund in its re-launch.



   Adopt a new strategy for the Church’s role in rural communities based on Seeds in
    Holy Ground to be debated by the Synod in February 2006.



   Champion the implementation of the recommendations of Called to Act Justly in support
    of the Committee for Minority Ethnic Anglican Concerns.

   Engage with government, Parliament, and society at large on major public policy
    challenges, bearing in mind the exhortation by the Archbishop of Canterbury in his
    Presidential Address that when we discuss public affairs ‗we identify what action we can
    take that will change us as part of the solution to what we have spoken about.‖. The
    current agenda on which the church, working ecumenically, has something important to
    contribute includes, resisting proposals to legalise assisted suicide and euthanasia, embryo
    research, the forthcoming Mental Health Bill, chaplaincy in NHS Trusts, the response to
    terrorism, asylum and immigration legislation, issues of religious liberty, criminal justice
    policy, matters relating to marriage and family life, and issues of war, peace and
    international relations.
   Promote the Church‘s involvement, in partnership with the mission and development
    agencies, in working towards the Millennium Development Goals particularly through the
    Make Poverty History Movement.
   Follow up the agenda set in Sharing God’s Planet it will support five diocesan
    environmental workshops per year.


   Encourage the development of world mission, through the Partnership for World Mission
    (PWM) and give support to the Churches of the Anglican Communion through the world
    mission agencies, diocesan companion links and parish networks.




8
                                                                   Progress made in 2007



   Mission opportunities of Church weddings explored in joint MPA/Communications
    project. Continued work with diocesan missioners and senior staff to develop ‗mixed
    economy‘ church. Training on mission opportunities of Dioceses, Pastoral and Mission
    Measure (especially Bishops‘ Mission Orders).

   Website launched to coincide with CTBI‘s publication of MTAG‘s book Sense Making
    Faith. Initial evangelistic and training targets met. Youth Evangelism Fund grants to
    young people in 20 dioceses to date. Presence and Engagement Task Group taking
    forward three strands of work: training and equipping local churches; resources for
    scriptural reflection; and resources for dioceses for making strategic responses.


   Report on CULF progress to Synod in July. Work with diocesan officers on policy and
    theological challenges of the report. Resources in preparation for 2008. Consultation with
    larger urban churches carried out in November 2007. CUF funding campaign launched –
    continued support for initiatives in urban mission and ministry.
   Research project Faith in Rural Communities: Contributions of Social Capital to
    Community Vibrancy follow-up resource in preparation. Extensive provision of training
    for rural ministry and mission for dioceses. New project initiated on skills for rural
    ministry and exploring vocations in rural areas.
   CMEAC organised the major Walk of Witness in February 2007 involving over 4,000
    participants and led by both Archbishops. Pack produced for schools on themes of the
    event.
   Continued to track abortion, assisted suicide and euthanasia debates; contributed to
    legislative changes to Human Fertilisation and Embryology Bill. Briefings for bishops on
    Borders Bill and immigration issues. Liaison with Parliament enhanced through e-
    bulletins and occasional briefing papers. All-Party Parliamentary Group on Hospital
    Chaplaincy formed through Hospital Chaplaincies Council. Sponsored Synod debates on
    Minority Ethnic concerns, Trident and criminal justice.




   Continued support for the Mission and Development Agencies. Review of Partnership for
    World Mission undertaken and new arrangements put in place.

   Shrinking the Footprint initiative continued with extended environmental campaign Don’t
    Stop at the Lights. Support to Anglican Communion Environmental Network and launch
    of Anglican Communion Bishops‘ Environment Group. Support for Creation Day
    activities for Lambeth Conference. Time for Creation developed and launched.
   Pre-Lambeth Hospitality Initiative developed offering space for gatherings representing
    the Communion‘s diversity.




                                                                                              9
Education

    Work with ecumenical and other partners to enhance the quality of Religious Education
     and Collective Worship for all schools.

    Implement the strategy for Further Education set out in the 2005 House of Bishops
     paper, Pushing Further, including spiritual and moral development for young people post
     16, an infrastructure for FE chaplaincy support, and the Multi-Faith Development
     Programme which is being funded by the Learning and Skills Council.

    Implement the strategy for Higher Education set out in the 2005 Synod debate,
     including drawing up guidance on the recruitment, training and accommodation of
     chaplains and, together with colleagues in the Ministry and HR divisions working on the
     legislation for Clergy Terms of Service (McLean), formulate terms and conditions of
     employment for chaplains.
    Work with other divisions on the follow up to the Synod Report on mutual expectations
     for Church Colleges and Universities.

    Deliver the Church's strategies with Children and Young People, approved by Synod in
     2002 and 2003 for the period to 2008.


    Provide opportunities, through CEYC and in other ways, for listening to the voice of
     young Anglicans and helping them gain a greater understanding of how to respond to
     God‘s call.

    Work to "improve theological education for the whole people of God" through
     development of Education for Discipleship programmes and the promotion of learning
     strategies within the Church.

    Promote the discipleship and ministry of lay Christians within both the world and
     within the Church, for example by encouraging the awareness of vocations such as
     teaching, and producing frameworks for non-canonical lay ministries and possible patterns
     of training / authorisation.

    Work to enhance the quality and scope of the Church‘s educational commitment through
     all partnerships, networks and contacts.


    Launch a new five year plan, building on the progress since Lord Dearing‘s report of
     2001. If endorsed by Synod this will run from 2006-2011 and set a revised target, perhaps
     of working towards 200 additional Church of England Secondary Schools, including
     academies and trust schools. The plan, supported by research evidence and the early
     results of the new inspection regime, will focus on the quality of provision. There will be
     guidance on admissions. There will also be recommendations about clergy and lay
     training, including a ‗school in church‘ initiative, and an engagement with diocesan
     vocations advisers.




10
                                                                    Progress made in 2007



   Funding secured from trusts and the National Society for the appointment of the RE
    Development Officer to support the work of the Church with Government and dioceses.

   A half-time development officer (FE chaplaincy) appointed and the number of
    chaplaincies in FE colleges increased from 200 to 270. A Guide to Multi-Faith Chaplaincy
    produced funded by Learning Support Council. Faiths and Beliefs in FE, the multi-faith
    successor to the National Ecumenical Agency in Further Education, launched.

   Strategy published in July 2007 and implementation plan approved. Faiths in Higher
    Education Chaplaincy, a research project funded by the Faith Communities Capacity
    Building Fund, completed and report launched nationally.



   Discussion held with individual institutions; small working party to identify areas for
    development.

   Continued work on Equipping and National Occupational Standards for Youth Work and
    support of diocesan recruitment processes for Children‘s Work Advisors. 5-year review of
    children‘s and youth strategies and identification of priorities for 2008-11 begun.

   Ongoing work of C of E Youth Council supported and a variety of resources developed in
    collaboration with the Children‘s Society to enable children‘s views to be heard.


   A national conference on leading learning held for diocesan adult educators and a project
    developed to encourage lay learning between Porvoo-linked dioceses.


   Transforming Lives and Vocations Sunday key elements. Discussion also of training and
    authorisation of lay youth ministers.



   Existing links with the Methodist Church strengthened through specific work on a new
    agenda for children. Multi-faith school providers group became firmly established with
    the Department for Children, Schools and Families.

   5-year plan endorsed by General Synod in February 2007 including target of 200 extra
    secondary schools. Over 70 new or expanded schools are open or planned and a further 80
    possibilities are already being explored. Detailed support for existing and new Church of
    England schools and academies established including new admissions guidance, the
    National Society Framework of Education Companies and Church of England Academies
    Services Ltd, and a project to support succession planning for school leaders funded by
    the National College for School Leadership.




                                                                                              11
Cathedral and Church Buildings

    Carry forward the agenda identified in Building Faith in our Future published in 2004.

    Aim to achieve a significant and lasting shift in public funding to benefit the
     maintenance and use of church buildings, taking into account the impact of VAT on
     church repairs and alterations through continuing discussions with government.

    Stimulate initiatives and promote best practice in dioceses and parishes in the use and
     understanding of church buildings.



    Implement the Care of Cathedrals (Amendment) Measure, due to come into force in
     2006 which slightly amends the system for approving works to cathedrals. In parallel,
     continue work with two volunteer cathedrals and two dioceses, and with English Heritage
     and the Department for Culture Media and Sport, to rationalise the overlap of the secular
     and church systems.

    Work with Government and English Heritage on the formulation of the new heritage
     protection system due to be the subject of a White Paper in spring 2006 and Government
     legislation in 2007/8 to ensure the proposals aligns with the Church‘s own systems.

    Work with the Ministry Division on the parts of the draft Dioceses, Pastoral and Mission
     Measure which proposes transfer of the functions of the Advisory Board for
     Redundant Churches to the Council for the Care of Churches.

    Monitor, advise and respond to proposals from Government which will affect cathedrals
     and churches, for example health and safety and working at height.

    Advise the Archbishops‘ Council on the options available when the National Aerials
     Agreement between QS4 and the churches that chose to participate in this nationally
     negotiated arrangement ends in May 2007.




12
                                                                  Progress made in 2007



   Work continued on Next Steps agenda with key focus on funding.

   Discussions continue with Ministers and officials on proposals to achieve up to 50%
    public funding for repairs of listed churches.


   Churchcare website revised and relaunched providing a one-stop-shop for advice and
    information on all aspects of church care. Seminars held with ‗capacity building‘
    organisations to discuss ways of better enabling church congregations to use their
    buildings to best effect.

   Guidance on working within the new Measure is being issued and training offered. The
    Measure came into force on 1 January 2008. Work continued on pilot projects.




   Discussions continue with English Heritage and Department for Culture, Media and Sport.
    DCMS Bill due in April 2008.


   Detailed planning with relevant parts of NCIs underway and will continue as the Division
    prepares for the start of the Church Buildings Council on 11 June 2008.


   Recent work has included new Regulations on smoking in public places and on various
    environmental issues.

   The National Aerials Agreement ended in May 2007. Participating churches given
    necessary advice. Archbishops‘ Council has committed funds earned nationally under the
    Agreement for a project to promote church weddings.




                                                                                           13
Communications

    Ensure that the Church‘s position is clearly understood in public debates about key
     social and moral issues and that its voice is heard in an increasingly crowded multi-
     channel media marketplace, by delivering communications that are mission oriented, pro-
     active, professional and integrated.

    Develop a networked way of working across the NCIs including Lambeth to ensure
     the Church is punching its weight across the board.


    Review the Communications Training Programme in 2006 to help those involved in
     the Church‘s mission present the Church‘s message with confidence and in an engaging
     and attractive way.

    Develop during 2006 a network of ‘advocates’ who can speak for the Church.



    Examine a range of web based technologies that could be used within the Church and
     externally to encourage effective two way communication and ensure that the Church has
     the right profile in the digital age, including the development of the Church‘s national web
     site.


    Raise the profile of Synod externally via the media and within the Church via web and e-
     mail based communications, in particular by communicating decisions from Synod
     promptly and assisting members in their communications role.


    Review the scope of communications liaison with dioceses during 2006/7, developing
     relationships with the diocesan communications officers to ensure that they receive the
     support they need from the centre to fulfill their role.


    Lobby for religious and faith issues to be given proper treatment by the BBC (as the
     prime public service broadcaster) and other channels. Continue to build up a
     programme of liaison with senior broadcasting decision-makers and regulators. Monitor
     implications for the church in the run up to the switch over to digital broadcasting in 2012.

    Work with the Anglican Communion Office and Lambeth Palace on the communications
     aspect of the Lambeth Conference to be held in the UK in 2008.




14
                                                                   Progress made in 2007



   Media interest in faith issues continues high. Church of England‘s view sought by range
    of media. Training for bishops and other key spokespeople further developed and a
    ‗Media Centre‘ launched on the Church of England‘s website providing resources for
    journalists and those working with them across the Church.

   Close co-operation maintained between the communications teams at Church House,
    Lambeth Palace and Bishopthorpe, with routine sharing of media information and
    developments.

   Done. The new programme was launched successfully in 2007, including courses in using
    new web-based technology, such as ‗blogging‘ and running effective websites.


   In progress. Communications training offered at July 2007 Synod and to key spokespeople
    at senior staff level in a number of dioceses. An online database developed for
    Communications staff.

   Users of the Facebook networking website sent more than 12,000 online Christmas cards
    produced by the Church in December 2007. The 2007 Live Life Love Lent initiative used
    text-messaging and web-based resources to promote ‗acts of kindness‘ during Lent. These
    and other initiatives demonstrate how the Church of England is promoting its mission
    using modern technologies.

   All Synod members with email accounts receive a monthly Communications Update for
    their own use and further distribution. Summary accounts of Synod sessions are also
    produced to assist members in their communications role. A series of ‗Working with the
    Media‘ workshops were run at Synod in July and there are plans to continue this intiative.

   Diocesan Communicators are closely involved in a range of country-wide initiatives
    including Back to Church Sunday and promoting church weddings. The DC Network is
    developing a programme of Continuing Professional Development supported by the
    Church House Communications Office.

   Support continues for the Bishop of Manchester‘s role on the House of Lords
    Communications Committee and to other bishops involved in media policy liaison with
    the BBC, Ofcom and independent producers. The Communications Office is lead
    supporter of the work of the ecumenical Churches‘ Media Council

   The Communications Office is working closely with colleagues at Lambeth Palace and
    the Anglican Communion Office on the media and wider communications aspects of the
    Conference.




                                                                                            15
Central Secretariat

    Provide Secretariat support for the follow up work of the Guildford Group‘s Report and
     subsequent Synodical decisions on women in the episcopate.

    Continue to provide efficient support for the meetings of the Synod, the House of
     Bishops and its Standing Committee, the Archbishops’ Council, Business and
     Appointments Committee.

    Provide staff support for the next phase of the Liturgical Commission’s work, as it seeks
     to enhance the formation of clergy and readers in relation to the leading of public worship.


    Service the Senior Church Appointments Review due to report in 2006.

    Prepare a work programme for the Dioceses Commission in the light of the new powers
     proposed for it.

    Provide Secretariat support for the Marriage Law Working Group which expects to be
     able to introduce draft legislation for First Consideration by the Synod in July 2006 and
     Final Approval in July 2007.

    Produce a code of practice to accompany the House of Bishops‘ policy document on
     national child protection work, and guidance on the related subject of protecting
     vulnerable adults. From 2006 there will be a joint arrangement with the Methodist Church
     for undertaking child protection work in both churches.


    Support a range of ecumenical initiatives through the Council for Christian Unity,
     including those set out in section 1, exploratory conversations under the Porvoo
     Agreement with the Church of Denmark and others and follow up work, involving the
     Faith and Order Advisory Group on the renewed diaconate and Christian initiation.



    Produce reliable and regular statistical information to further the work of the church in
     parishes, dioceses and the NCIs and to undertake regular monitoring of diversity across
     the Church as requested by Synod in the previous quinquennium.




16
                                                                    Progress made in 2007



   The legislative drafting group is expected to report in time for the July 2008 General
    Synod.

   A new pattern of national episcopal meetings has been prepared to start in December
    2008. Other meetings were as usual.


   Transforming Worship, a major initiative to enhance liturgical formation in the Church of
    England, was launched with a Synod debate in July 2007. A Transforming Worship
    website was launched in October 2007.

   Report published and debated at the July 2007 Synod.

   Preliminary discussions at the House of Bishops and Archbishops‘ Council preparatory to
    establishing the Dioceses Commission with new powers and work programme in 2008.

   The Church of England Marriage Measure received Final Approval in July 2007 and has
    been deemed expedient by the Ecclesiastical Committee of Parliament.


   Good practice guidance now made available nationally to the diocesan child protection
    advisers on a restricted extranet website. A Past Child Protection Cases Review protocol
    was approved by the House of Bishops during 2007. More progress in helping dioceses
    on the implementation of Promoting a Safe Church (the House of Bishops‘ policy
    guidance on vulnerable adults) is due to take place in 2008.

   The Joint Implementation Commission on the Anglican/Methodist Covenant
    presented a further interim report to Synod and the Methodist Conference in 2007 (final
    report in 2008). The Faith and Order Advisory Group continued to explore issues in
    Christian initiation raised by ecumenical dialogue and to do work on lay ministry and the
    diaconate. Consultations have taken place under the Porvoo Agreement, on the diaconate,
    on mission-shaped church and on teaching and discipline with regard to human sexuality.

   The Research and Statistics Department developed and supported quantitative and
    qualitative research across the NCIs, including specific research into patterns of
    deployment of stipendiary clergy. The national 2007 survey of diversity across the
    Church and the biennial national survey into public attitudes towards church are both
    close to completion. Community Value, the third booklet in the research-based parish
    Time to Listen series was published in 2007. Support has been given towards the national
    weddings project, Fresh Expressions, the apportionment limited review, cathedral
    mission, the funding of church buildings and the Shrinking the Footprint campaign.




                                                                                             17
Finance

    Help parishes, through the national stewardship officer and in partnership with the
     dioceses, to increase the giving of their members to reach the First to the Lord target
     of 5% of take home pay and maximize their fund raising potential.




    Work with dioceses and the wider church to develop a strategic overview of the finances
     of the Church of England and indicators that can inform and guide decision making.



    Promote discussion of the proposals in the report of the Resourcing Mission Group with a
     view to decisions in 2007 on the use of the Church’s national resources in 2008-2010.
     In this context, explore the scope for further mutual support among dioceses.




    Secure in 2006 the full merger of the activities of the three accounts departments of the
     Archbishops‘ Council, the Church Commissioners and the Pensions Board in a single
     Accounts Department to provide high quality cost effective services in financial
     accounting, asset accounting, treasury and taxation services to the national church
     institutions.




    Expand the provision of internal audit services to dioceses.



    Work with the Diocesan Accounts Group (DAG) with the production of guidance for
     dioceses and parishes on accounting and governance issues arising from the new
     accounting framework for charities (SORP2005) and the Charities Bill.




18
                                                                     Progress made in 2007



   Giving in parishes continues to rise ahead of inflation. To encourage church members to
    give proportionately out of their incomes, a wider campaign to promote stewardship of all
    of our money has been initiated. The National Stewardship Committee continues to
    publish and promote good practice, and in 2007 established a task group to develop the
    fundraising capability of parishes. The Church was part of a national coalition which
    lobbied (successfully) for relief from the effects of the 2007 Budget on Gift Aid payments.

   An overview of the Church‘s finances was published in May 2006 as GS Misc 819. The
    intention is to revise this during 2008 and annually thereafter. Consideration will be given
    to broadening its scope, provided the likely benefits for policy making across the Church
    outweigh the additional resources necessary to produce it.

   A Task Group established by the Archbishops considered various scenarios in the light of
    the report of the Resourcing Mission Group. Following receipt of the triennial actuarial
    review of the Church Commissioners‘ fund as at 31 December 2006, the Archbishops‘
    Council and Church Commissioners, in consultation with the House of Bishops and
    dioceses, agreed spending plans for 2008-10 during 2007. Expenditure in the three grant
    categories of ministry support for low income dioceses, the mission development fund
    (formerly the parish mission fund), and grants to cathedrals will be increased in line with
    earnings inflation, enhancing the level of mutual support.

   Further restructuring to professionalise the team and replace temporary posts with
    permanent staff took place in 2007. Performance of the Department has suffered during
    the protracted life of the SAP project, and successful completion is a high priority for
    2008, with go-live of the remaining Commissioners and Pension Board systems now
    planned for 1st January 2009. During 2007, the Financial Policy and Planning departments
    of the Archbishops‘ Council and Church Commissioners were merged to form a combined
    unit serving both organisations. Consideration will be given upon completing SAP to
    integrating the financial policy function of the Pensions Board within this common service
    unit.

   The future provision of this service was considered by the Archbishops‘ Council. It was
    agreed to continue the service provided at present to dioceses in the south-east, but not to
    extend the service any further for the time being.

   Initial discussions took place during 2007 with the Charity Commission to agree a
    standard approach to registration with the Commission for those parishes with incomes
    above £100,000. This process of registration is expected to start during 2008.




                                                                                              19
Legal Office

    Provide legal advice and drafting assistance for the new legislation set out in section 1.

    Monitor proposed government legislation and make representations to Whitehall on
     behalf of the church to ensure it takes a form which respects the life and values of the
     church (including the further Equality Bill, consequent amendments to anti-discrimination
     legislation, and legislation flowing from the Heritage Protection Review).

    Provide advice on legal issues arising from the administration of the national
     institutions, for example the implications of charitable status in relation to governance
     issues and the proposed winding up of the Central Board of Finance.

    Support the Business Committee and the Standing Orders Committee in relation to the
     progressive reform of the Synod’s procedures, in particular the changes required in
     connection with the introduction of electronic voting (expected in 2007).


    Support the implementation of the Clergy Discipline Measure and revised proposals in
     relation to doctrinal discipline.




    Be available for legal advice and support throughout the church, including assisting the
     diocesan registrars and resourcing the Legal Advisory Commission.

    Explore the feasibility of promoting the reform of the substantial body of existing church
     legislation through the repeal of obsolete enactments.




20
                                                                  Progress made in 2007



   Substantial work, as recorded in section 1.

   Significant involvement in responding to government legislation, especially in relation
    to the Sexual Orientation Regulations, the report of the Discrimination Law Review and
    the Charities Act.


   A wide range of advice has been provided, including in relation to governance issues and
    the implications of the new rules for public benefit and the registration of charities.


   Advice has been given to the Business Committee on the introduction of electronic voting
    into the Synod. The reform of the Synod’s procedures awaits further work by the
    Standing Orders Committee. The review of synodical election processes is being taken
    forward by the Elections Review Group.

   Advice and support continues to be given to those involved in administering the new
    procedures and investigating complaints. Disciplinary tribunals have now started to meet
    and determine complaints. The formulation of revised proposals in relation to doctrinal
    discipline has been postponed until more experience has been obtained of the working of
    the CDM.

   Discussions continue with diocesan registrars and diocesan secretaries about extending
    the Legal Office‘s advice-giving role.

   Discussions continue with the Legal Advisory Commission.




                                                                                          21
Human Resources

    Deliver efficient and cost effective HR services, including support for recruitment, in
     relation to the nearly 500 staff employed by the NCIs, the further 400 staff solely
     employed by the Church Commissioners or Pensions Board and the 170 staff of diocesan
     bishops.

    Support the NCIs in the delivery of the targets set in accordance with ‗Called to Act
     Justly‘ to double by 2009 the employment of people from minority ethnic backgrounds
     and to increase to 35% the proportion of senior posts held by women within the
     national church institutions.


    Design increased flexible working patterns for staff for implementation in 2006.


    Enhance the performance of the NCIs and diocesan bishops‘ offices in relation to health
     and safety requirements.




    Provide professional support for the implementation of the Review of Clergy Terms and
     Conditions recommendations, (McClean), support the implementation group in drafting
     the Regulations, help dioceses put in place local HR functions with the right national
     backing to secure a smooth changeover to common tenure and produce national guidance
     on Ministerial Review and training for those who will conduct it.



    Support the redesign and implementation of a national job evaluation system for use in
     dioceses, working initially with eight north eastern dioceses.




22
                                                                   Progress made in 2007



   With the Pensions Board, consulted staff and prepared the implementation from
    January 2008 of the new pension arrangements for the future service of staff
    employed before 1 July 2006.


   Ethnic data disclosure remains at 94%. Percentage of BME staff increased from 12% to
    14%. The overall percentage of women in band 2 and above is currently 25%, well short
    of the 2009 target of 35%. An action plan to address the targets has been agreed and
    promulgated. Two Ticks mark awarded for recruitment processes for disabled people.
    Redrafted complaints procedure for bullying and harassment.

   Work-life balance and flexible working policy was implemented in November 2006 and
    reviewed in November 2007.

   17 health and safety courses were run, including fire extinguisher training, working at
    height, risk assessment, avoiding back pain, flexible working and first aid which 206 AC
    staff attended. Ran 19 courses covering absence management, fair selection, equal
    opportunities awareness, public policy, job evaluation, mental health awareness and
    induction for new staff. 170 AC staff attended these. 15 AC staff undertook sponsored
    studies leading to professional qualifications including 4 AC staff who took those of the
    Chartered Management Institute.

   Planned the training for bishops, archdeacons and diocesan secretaries on terms of
    service changes. Redrafted the capability and grievance procedures for ecclesiastical
    officer holders and supported Ministry and Legal as they took the legislation through
    General Synod. Most dioceses are currently seriously considering how to provide HR
    services in the future. 23 are considering a service level agreement with the NCIs for
    locally based, shared services managed from here and 7 already have HR Managers in
    place, some on a shared basis. We await information from the rest about their plans.

   Ongoing.




                                                                                             23
Libraries, Archives and Information

    Deliver the proposals in the Documentary Heritage Review for an effective Libraries,
     Archives and Information Service across the NCIs to embrace the Lambeth Palace
     Library, the Church of England Records Centre, the Library for the Council for the Care
     of Churches and the Cathedrals Fabric Commission for England, and other libraries of the
     National Church institutions.

    Create an inter- disciplinary staff structure to manage resources for investing in project
     work e.g. cataloguing, electronic records management and online access to the archives.


    Create a records management system embracing both electronic and paper records
     including corporate record retention schedules, subject thesaurus and a data archive.



    Explore scope for the advisory and consultancy services to dioceses.



Publishing (managed by Director of Communications from May 2007)

    Develop the brand of Church House Publishing and broaden its service role from being a
     publishing department to become a pro-active co-ordination centre for information
     dissemination, including publications for sale, free literature and the Internet.



Information Technology (managed by Director of Central Secretariat from May 2007)

    Harness information technology to improve efficient data transfer and information
     sharing, particularly between the NCIs and the dioceses.




24
                                                                   Progress made in 2007



   Continued to promote single archival service e.g. with presentation at the 2007 Religious
    Archives conference. Library website re-designed for early 2008 launch. The library
    website source guides will be updated to reflect the joint nature of the catalogue and
    holdings – Library and CERC and where appropriate CCB library. CCB Library now
    housed in a single dedicated Church House library.

   All cataloguing now onto single joint catalogue which as of Nov 2007 has over 300,000
    entries. Joint source guides to the archival content at Lambeth and CERC now in
    production in preparation for new Library website.

   Successfully supported moves of staff to Church house from Elizabeth House and
    Millbank and provided advice on record keeping to a wide range of departments.
    Embarked on retention schedules project for the NCIs starting with Pensions housing, to
    be followed by AC and CC Central Secretariat teams.

   Agreed with the Diocesan Secretaries Liaison Group the scope and contents for a guide to
    diocesan record keeping. Visits to several dioceses planned for early 2008 followed by
    production of a guide to be made freely available via the Church of England Website.




   An independent review of Church House Publishing was carried out in 2007 and an action
    plan is being taken forward aimed at ensuring that CHP‘s budgetary position is improved
    and that the Archbishops‘ Council‘s publishing needs are delivered professionally and can
    continue to support and further the mission and ministry of the Church of England.




   The I T department was integral in the coming together of the main NCIs in Church
    House following its refurbishment and the sale of No 1 Millbank. I T has also introduced
    new technology to improve the Business Continuity facilities available in the event of
    any disasters occurring. Continued involvement with the review of the Clergy Pay and
    Pensions Payments system are ongoing, looking at the whole way in which the dioceses
    and the NCIs administer clergy pay and pensions, with particular emphasis on electronic
    communication between the parties and integration benefits with the Pensions
    Administration system. The NCIs are rolling out SAP as the replacement not only for the
    various Accounting Systems, but also many of the in-house systems such as CHARM and
    Value Linked Loans and the I T development team will be heavily involved in configuring
    and developing SAP to cover these areas.




                                                                                            25
Pensions Board

Pensions
   Implement the scheme administration changes consequent from the Pensions Act 2004
     and Finance Act 2004 including the introduction of new administration software.
        Equip Board members to meet their new responsibilities in relation to trustee
         knowledge and understanding.
        Collaborate with the Archbishops‘ Council and the Church Commissioners on reviews
         of both lay (NCI) and clergy remuneration including pension provision.



Housing
        Implement the new Financial Services Authority regulatory regime in respect of
         CHARM mortgage activity.
        Complete the redevelopment/modernisation of the Board‘s supported housing network
         and a review of future strategy.



        Follow up and implement the recommendations of a recent review of the CHARM
         housing scheme.



Finance and investments
        Implement long term arrangements for the strategic oversight of the Board‘s
         investment property holdings.


        Bed in the new global equity manager appointed in 2005 and regularly review the
         performance of all the Board‘s investment managers.

        Review the Board‘s professional appointments (auditor, actuaries, strategic investment
         advisers).
        Participate with the other NCIs in the implementation of the new accounting system.


General
        Review and introduce service standards for all the Board‘s activities.



        Look for opportunities to promote the Board‘s activities, extend fundraising and
         improve communication with beneficiaries and scheme sponsors.
        Pursue further opportunities for collaboration and the sharing of resources with the
         other NCIs.



26
                                                                 Progress made in 2007




   The requirements of the Pensions & Finance Acts 2004 with effect from 1 April 2006
    were met and new pensions administration software installed.
   An ongoing programme of training for Board members has been incorporated into
    scheduled Board meetings.
   The review of the NCI staff pension scheme led to the closing of the existing defined
    benefit scheme for all new staff joining after 1 July 2006. A new defined contribution
    scheme for these new staff members was designed and implemented at that date.
    Discussions on possible modifications to the closed defined scheme to reduce costs
    have been agreed.


   The Board completed its registration with the Financial Services Authority in the
    course of 2005 and is now operating under the required regulatory framework.
   The programme to redevelop/modernise the Board‘s supported housing network was
    concluded in the autumn of 2007 when the redevelopment of Manormead in
    Hindhead, Surrey was completed. The Board commissioned a review of future
    strategy in relation to the network and a number of recommendations flowing from the
    consultant‘s report are now being implemented.
   The recommendations of the review of the CHARM scheme carried out in 2005 aimed
    at containing the size of the current subsidy, are being implemented. The Board is
    also participating in the wider review of retirement housing provision which has been
    set up by the Archbishops‘ Council in response to concerns raised during the clergy
    pensions consultation exercise.


   The Board‘s Investment Committee is currently carrying out a comprehensive review
    of its investment strategy and recommendations were made to the Board in the course
    of 2007.
   The new global equity manager GMO UK, appointed in August 2005 is now fully
    integrated into the Board‘s fund manager arrangements. The performance of all its
    managers is reviewed on a quarterly basis.
   The Board has appointed DTZ Tie Leung to oversee its investments in property unit
    trusts. A review of its other professional advisers is taking place on a staggered basis.
   The new accounting system was implemented in the Archbishops‘ Council at the end
    of 2006. The Pensions Board is due to convert to the new system by the end of 2008.



   A review of the Board‘s service standards in relation to the CHARM scheme has taken
    place in conjunction with the disposal by the Church Commissioners of their interest
    in the mortgage portfolio. Other areas of the Board‘s activities will follow.
   Work in this area is ongoing.

   The NCIs continue to collaborate in this area and to consider all opportunities for the
    sharing of resources when they arise.



                                                                                           27
Church Commissioners

Over the period of the quinquennium, the Commissioners‘ key objectives are to:

    Achieve a return from their assets that is in excess of their minimum target
     (c.7.5%p.a.) and compares favourably in each asset class and at total level against
     appropriate benchmarks.
    Continue to meet their pension obligations (partly funded out of capital) and provide the
     Church with a stream of non-pensions support which is rising in line with earnings
     inflation.
    Help resource the Church‘s mission by making money available to support bishops’,
     cathedrals’, parish and other ministry, paying particular regard to making ‗additional
     provision for the cure of souls in parishes where such assistance is most required‘.
    Work with the Archbishops‘ Council and House of Bishops to follow up (in consultation
     with all interested parties) the proposals of the Resourcing Mission Group in order to
     develop the best way Commissioner funds can serve the Church‘s mission and ministry in
     the future, focusing on the development of spending plans for 2008-10.
    Use the Commissioners‘ links with Parliament to help the Church gain more State help
     to pay towards the cost of maintaining its buildings (active as well as redundant
     churches).
    Help bring in to being the new Pastoral Measure (and accompanying guidance and
     Codes of Practice) to enable the Church to maximise its mission opportunities.
    Continue to seek and evaluate ways to improve the delivery of all their activities in line
     with Church-wide needs and priorities and with due regard for ethical investment and
     ecological good practice.




28
                                                                   Progress made in 2007



The Commissioners continue to seek and evaluate ways to improve the delivery of their
activities in line with Church-wide needs and priorities
Investments
 Achieved a total return from their assets of 10.7% per annum on average over the 10-year
   period 1997-2006. This exceeded both their minimum target (c.7.5%p.a.) and the relevant
   UK pensions fund universe (WM) which averaged 8.0% p.a. over the same period,
   enabling the Commissioners to provide an annual £43 million more in support for the
   Church than would have been possible if their assets had performed in line with the WM
   average.
 Achieved returns per individual asset class that also compared favourably with relevant
   benchmarks.
 Exploring new opportunities for commercial property investment, including overseas,
   with a view to future good financial returns. Investments made in funds in mainland
   Europe and Asia.
 Continue to work within the Church-wide framework of the Ethical Investments Advisory
   Group‘s guidance while developing a Commissioners-specific statement of ethical
   investment policy that reflects their position as substantial property owners and the long-
   term nature of their funding commitments.
Funding
 Continue to meet their pension obligations (partly funded out of capital).
 Provide the Church with a stream of non-pensions support whose annual value has
  remained steady in real terms.
 Within that non-pensions funding, providing a gradual real-term increase in the
  Commissioners‘ annual support for dioceses‘ parish-level mission and ministry.
 Continuing to develop outcome-led accountability systems for reporting the use of
  centrally-provided funds supporting dioceses‘ mission work.
 Worked with the Archbishops‘ Council and House of Bishops on the development of
  spending plans for 2008-10, which will include a new form of funding for mission in new
  housing and development areas.
Bishoprics & Cathedrals
 Help resource the Church‘s mission by making money available to support bishops‘ and
   cathedrals‘ ministry and ensuring the cost-effective upkeep of diocesan bishops‘ houses.
 From January 2008, introduced global budgets for funding bishops‘ working costs, with
   bishops‘ offices now largely responsible for the administration of bishops‘ working costs
   within their diocese.
 Continue to target ‗section 23‘ administrative support grants on cathedrals with the
   greatest financial needs.
Pastoral & Redundant Churches
 Sharper focus on proactively supporting diocesan officers‘ efforts to find new futures for
  church buildings closed for worship, developing Commissioners‘ staff skills and
  departmental structure with that objective in view.
 Continue to raise increasing levels of sale proceeds from redundant churches, where
  appropriate, to enable greater funding for the ongoing mission of the Church.
 Continue to bring into being the new Dioceses, Pastoral and Mission Measure (and
  accompanying guidance and Codes of Practice) to enable the Church to maximise its
  mission opportunities.
 Ongoing development of the new hearings process for representation cases to either the
  Pastoral or Redundant Churches Committees.



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