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					Archdiocese of Cardiff


    Finance briefing for
         parishes
        April 2010
                 Finance Briefing
                    Agenda
Diocesan financial results for year ending 31 March
2009
Parish Assessments for 2010/11
Parish Audits
Parish financial management
Parish budgets
Facing the Future
Papal visit 2010
Gift Aid 2010/11
Finance Spreadsheets
Questions and comments
                  Financial results for 2008-9
                                Curia      Parishes    Total      Total
                                2008/9      2008/9     2008/9     2007/8
                                  £k          £k         £k         £k
INCOME
Donations and gifts                 387        3,444      3,831      4,168
Legacies                            361          309        670        233
Charitable activities                             22         22         19
Capital grants -schools                         4508      4,508        386
Fund raising and other income        68          786        854        729
Gain on disposal of property        280            0        280        116
Investment income                   410           19        429        543
Parish levy                         714                     714        703
Transfers                                       670         670         51
TOTAL INCOME                       2,220       9,758     11,978      6,948


EXPENDITURE
Charitable activities              1,314       3,625      4,939      4,793
Schools capital expenditure                    5,296      5,296        496
Costs of generating funds            41          341        382        308
Governance costs                     25                      25         23
Parish levy                                     714         714        703
Transfers                           670                     670         51
TOTAL EXPENDITURE                  2,050       9,976     12,026      6,374

SURPLUS/(DEFICIT)                    170        -218        -48        574
Investment gains/(losses)           -793                   -793       -270
Revaluation of fixed assets          -18                    -18        417
NET RESOURCES                       -641        -218       -859       721
                  Financial results for 2008-9
AN AL Y S IS O F E X P E N D IT U R E
C haritable Ac tiv itie s :             2008/9   2007/8
                                         £k       £k
P aris h s upport c os ts -
Repairs and maintenance                    838      807
Light, heat, rates and insurance           543      513
Office expenses                            200      190
Salaries and NIC                           247      252
Liturgical costs                           225      258
Depreciation                               244      252
Other costs                               1509    1,442
                                          3806     3714
C le rg y we lfare c os ts -
Clergy allow ances, including travel       473      452
Housekeeping and sundries                  160      152
House expenses                              95      105
Resigned and infirm clergy                 175      135
Pension contributions                       50       51
Clergy training                             39       50
                                           992      945
S c hools s upport c os ts -
Schools commission                          71       63
Religious education commission              54       55
Catholic Education Service                  16       16
                                           141      134

T otal C haritable Ac tiv itie s         4939     4793
                          Financial results for 2008-9
Summary Balance Sheet
                                        31st March 2009     31st March 2008

                                         £k       £k        £k       £k
Fixed Assets
Tangible Fixed Assets                              8,868              9,112
Investments                                       3,981               4,744
                                                 12,849              13,856
Current Assets
Properties aw aiting sale                   62                465
Debtors & Prepayments                      909                773
Cash & Bank Balances                     6,103              5,959
                                         7,074              7,197

Current Liabilities
Creditors & Accrued Expenses             1,059              1,330

Net Current Assets                                6,015               5,867

Total Assets less Current Liabilities            18,864              19,723

Creditors due after more than one year                 20                 20

D io c e s an C ap ital                          18,844             19,703

F unds
Restricted                                        3,355               3,818
Unrestricted:
Designated                                        1,121                 737
General                                          14,368              15,148
                                                 18,844              19,703
                   Financial results for 2008-9
                                                 Balances at
RESTRICTED FUNDS                 31 March 2009          31 Ma rc h 2008
                                   £k                        £k

Priests training fund              1,135                     1,317
Poor missions fund                   705                       817
Endowed Missions and masses
fund                                471                          569
Overseas missions fund               57                           81
Sick and retired clergy fund        314                          256
Archbishop     Murphy memorial
fund                                417                          523
Mensal fund                          46                           58
University Chaplaincy                20                           25
Our Lady of Vocations                 7                            9
Cathedral restoration fund           82                           63
Pastoral Strategy fund               16                            4
Third Party Collections              85                           96

                                   3,355                     3,818
Designated Funds
                                   £k                       £k
Housekeepers pension fund           281                          339
Fund for retired housekeeper          12                          15
Sea mission                           35                          44
Clergy welfare fund                 108                          108
Schools development fund            291                           11
Campaign fund                       277                          100
Property fund                       117                          120

                                   1,121                         737
                 Financial results for 2008-9
                                   2008/9      2008/9    -H /L
                                  B udg et*    Ac tual
                                     £k          £k       £k
C UR IA
E s tablis hment E x pens es          51        37        14
Adminis trative                      193       202        -9
F inanc e and G eneral               161       161        0
S c hools C ommis s ion               72        71        1
P ries ts ' training                  50        39        11
D ioc es an P ers onnel               83        82        1
C ommis s ions and E s tablis hments 281       245        36
Mis c ellaneous                       53        51        2
C onting enc y                        50        0         50
S ub total                           993       886       107
Depreciation                         229       244       -15
T otal C os ts                      1222       1130       92
L es s : building s deprec iation    228       243        16
Income excl assessments              465       793       327
Net c os ts                          529        95       435

C L E R G Y WE L F AR E
R es ig ned and infirm c lerg y     141         165      -24
Priests' pension contributions       52          50       2
T otal c os ts                      193         215      -22
Income                               4           4        0
Net c os ts                         189         211      -22

T OT AL C OS T S
T otal net c os ts                  718         305      413
As s es s ments                     718         713       5

S urplus / -defic it                       0    408      408
        Parish Assessments for 2010-11

• If assessment rates held to last year, budget deficit
  of £170k.
• Dealing with the Budget deficit:
    -Reduce interest on parish deposits to 0.75%, with
  commitment to increase if market rates improve -£60k
   – Repairs to Archbishop‟s House funded by legacy- £80k
   – Possible Special Collection for clergy welfare - £31k
                     Parish Assessments for 2010-11
                                       2009/10   2010/11   -H /L
                                       Budget    Budget
                                         £K        £K       £K
CURIA
Establishment Expenses                   44       120      -76     Repairs to Archbishop's House £80K
Administrative                          211       202       10
Finance and General                     169        87       82     Reduce interest on parish deposits to 0.75%
Schools Commission                       68        75       -7
Priests' training                        51        30       21
Diocesan Personnel                       84        86       -2
Commissions and Establishments          268       286      -18     Family Life
Miscellaneous                            53        53       0
Contingency                              50        27       23
Sub Total                               998       966       32
Depreciation                            244       244       0
Total Costs                             1242      1210      33
Less: buildings depreciation            243       243       0
Income excl assessments          465    375       350       25     R educ ed bank interes t and dividends £37k
Net costs                               624       617       8      offs et by National G rant for F amily L ife £12k

CLERGY WELFARE
Resigned and infirm clergy              142       175      -33
Priests' pension contributions           51        50       1
Total costs                             194       225      -31
Income                                   5         5        0
Net costs                               189       220      -31     S pec ial Appeal or C ollec tion

TOTAL COSTS
Total net costs                         813       837      -24
Assessments                             718       726       -8
Surplus / -deficit                      -95       -110      16
              Parish Assessments for 2010-11

                   £ thousands
                                                    CURIA      CLERGY WELFARE
                                               2009/10 2010/11  2009/10 2010/11
Total costs                                    1242.1   1209.6   193.6   224.7
Less: Buildings and contents depreciation       243.3    243.3
       Interest and dividends                   350.1    349.6    4.3     4.9
       Designated funds /special collections    111.6     80             30.4


Net Central Costs (Diocesan Assessments)       537.1    536.8    189.3    189.4

To be paid by Benedictine Parishes               10      10

To be paid by diocesan parishes                527.1    526.8    189.3    189.4

Parish Offertory Income                        2233.3   2230.1   1874.4   1875.2

Proposed % of Offertory Income                  23.6     23.6     10.1     10.1




27/04/2010
           Buildings Expenditure

• EXPENDITURE in 2008-9 £800k.
• AUTHORISED £800k of parish building works
  in 2008-9, including £620k of loans.
• AUTHORISED £680k of parish building works
  in 2009-10 including £90k of loans
• AUTHORISED loans of £180K to governors
  of four primary schools, enabling government
  grants of £1.9M to be obtained.
• 30 projects, details published in the „Catholic
  People‟
      Major projects approved in 2008-10
•   Our Lady and St. Patrick, Maesteg
•   Repairs £450K, ( total £650k)

•   St. Mary Monmouth
•   Repairs to church and presbytery £160K

•   St. Alban, Pontypool
•   New Heating system £45k

•   St. Francis Xavier, Hereford
•   Presbytery external repairs £52k

•   St. Julius, Newport
•   Extension and refurbishment £51k

•   Christ the King, Cardiff
•   Parish Centre redevelopment £185k
        Loans to Schools - update
In 2009, approved loan of £900k to governors of
Archbishop McGrath High School Bridgend, to enable
complete rebuild on new site.

This enabled Government and Local Authority funding
of £15M to be obtained.
 Buildings Expenditure – Looking ahead

• Please take action to address:-
  – Fire risk assessments
  – Health and Safety
  – Essential maintenance


  Obtain prior approval of Finance Committee
   for items over £2000
                         Parish Audits
             SUMMARY OF AUDIT RECOMMENDATIONS - 2009

Cash Slips not signed by both counters                                    5
Collections not banked for > 1 week                                       3
Employees not set up on central diocesan payroll                          2
Inadequate fund raising record keeping                                    5
Unpresented cheques not written off                                       1
Third party collections not paid over promptly and accurately             2
Only one person with adequate knowledge of accounting system              1
Petty cash balances not verified regularly                                1
Differences between gift aid registers and turnround report               3
Inadaequate / no record of decisions of parish committees                 1
Incorrect name on bank paying in book                                     1




                           SUMMARY OF FINDINGS
Parish record keeping is generally satisfactory                           5
Cannot provide assurance that books and records are wholly satisfactory   1
                        Parish budgets
• Draft budgets for 2010/11 prepared and published to
  parishes in February 2010
• Reflects 2010/11 assessments and continuing benign
  outlook for inflation at around 3%.
• Includes reduction in interest paid on parish deposits
• Indicates a aggregate surplus of £830K excluding
  any major works yet to be approved.
• 18 parishes have indicated deficits in 2010/11

•   Please advise diocesan finance department of any significant changes
    to draft budgets
                                     Parish Financial Management
                                                    PROCESS FOR DEALING WITH PARISH FINANCIAL ISSUES
            Issue                            Stage 1                                                                             Stage 2                         Stage 3
                                                                                                                                                                                    Keep under
                                                                                                                  Yes   Commitments met?             Yes                            Review
Review of submitted                                                                                                                                        Implement cost savings
year end accounts                                                                                                                                    No
                                                                                                                        Meeting between Parish             Weekly allowance
                                                                                                                  No    Priest and Parish
                                  Treasurer writes to          Parish Priest consults                                   finance committee                  Interest remission for
Annual Deficit                    Parish Priest highlighting   parish finance           Reviewed by Diocese             Vicar General and Diocesan         X years provided
(Actual or budget)                problems and                 committee, prepares      Finance and         OK?         Treasurer within a month           commitments met
                                  requesting plan for          response within          Vicar General
                                  correction                   one month                                                                                   Appoint Fund raiser
                                                                                                                        Prepare written agreement.
                                                                                                                        Advise Diocesan Finance            Planned giving
                                                                                                                        Committee                          campaign

                                                                                                                                                           Appeals to richer
                                                                                                                                                           parishes

                                                                                                                                                           Support from Poor
                                                                                                                                                           Missions Fund

                                                                                                                                                           Appoint administrator
Loan not being repaid
                                                                                                                                                           Sell property

                                                                                                                                                           Parish amalgamation




                                     First occurrence                                                                     Second occurrence                     Sanctions

                                                                                                                                                                                    Keep under
                                                                                                                  Yes                                                               Review
                                                                                                                                                           Temporary removal
Diocesan Finance                  Treasurer writes to                                                                                                      of cheque book/debit
sample parish bank                Parish Priest                Application made?                                                                           card
statements                        requesting retrospective                                                              Meeting between Parish
                                  application to Archbishop                                                       No    Priest,                            Change bank mandate
                                  who will place it before the                                                          Vicar General and Diocesan          to require second
                                  trustees                                                                              Treasurer within a month           signature of Treasurer

Unauthorised expenditure                                                                                                                                   Any others?


Phil King                  9 February 2010
                              Facing the Future
                 CLERGY IN THE ARCHDIOCESE OF CARDIFF
                             as of 1st April 2010


                                        Diocesan Priests

Working in Working                Sick    Resigned   Total       Seminarians From Other
Diocese    outside                Leave   from                               Dioceses
           Diocese                        office

    45**                3           1         18       65            0            3
      47                4           1         13       65             1           1




                                        Religious Priests

Working in        Particular
 Parishes         Ministries

      17                2
      22                3

** Age 70 – 80 years: 3 priests           Permanent Deacons
   Age 80+ years: 3 priests
                                                            14
                                Facing the Future
                                  THE CHANGING FACE OF THE DIOCESE

   PARISHES WITH                      PARISHES                          SUNDAYMASS
          PART/                   MERGED/CLUSTERED                   CENTRES/CHURCHES
   NON RESIDENT                                                           CLOSED
        PRIESTS
Bromyard                   Barry: St Helen/ St Michael             Courtfield
Cardiff: Christ the King   Newbridge/Pontllanfaith/ Risca          Rhoose
Cardiff: St Clare          Newport (St Anne/St David/St David      Pencoed
                           Lewis/St Mary/St Michael/St Basil)
Cardiff: St Cuthbert       Pontypool/Griffithstown/                Trethomas
                           Abersychan/Blaenavon
Aberkenfig                 Rhondda (Tonypandy/Treorchy/Ferndale)   Senghenydd
Caerleon                   Cardiff: St Teilo/Our Lady of Lourdes   Cwm
                           Abertillery/Brynmawr                    Caerau
                           Ross/Courtfield/Ledbury                 Treharris
Ledbury                    Caerphilly/Senghenydd                   Cwmcarn
Merthyr Vale               Penarth/Dinas Powys                     Mardy
Pyle                       Merthyr/Merthyr Vale                    Llanharan
                           Aberdare/Hirwaun/Mountain Ash           Whitchurch (Herefordshire)
Rhymney                    Abercynon/Bargoed                       Abersychan
Bargoed                    Cwmbran/Pontnewydd                      Llanhilleth
                           Newport: St Gabriel/Caerleon            Griffithstown
                           Maesteg / Aberkenfig                    Bartestree
                           Tredegar / Rhymney                      Bullingham
                           Cardiff: St. Clare / St. Francis        Fairwater(Cwmbran)
                           Cardiff: Sacred Heart / St. Cuthbert    Barry: St Michael
                           Cardiff: St. Brigid / Christ the King   Broad Oak
                                                                   Ewyas Harold
                                                                   Leintwardine
                                                                   Ferndale
                                                                   Treorchy
                 Gift Aid 2010-11

• Transitional Relief
• Reduction in repayments from 22% to 20% (11.3% of
  diocesan tax reclaim, approx £ 44k) which would
  have occurred in 2008/09 but for the transitional relief
  will take effect from 6th April 2011.
• To maintain the status quo we will need to increase
  the level of giving by 2.5% across the board.
• Message. Try to persuade more regular givers to
  sign Gift Aid declarations
               Gift Aid 2010-11



From 1 April 2010, all parish Gift Aid Claims will
  be credited directly to parish current
  accounts, unless parish has an outstanding
  loan account.
            Gift Aid - General
Offertory envelopes should be ordered on
 a tax year basis thus ensuring that each
 donor has the same number throughout
 the year
Finance Spreadsheets
• Ordinary Accounts
• Gift Aid
 Ordinary Accounts spreadsheet
Replaces clerical accounts book
1. Once monthly figures are entered
2. All calculations are done automatically
     •  Totals numbers
     • Transfers totals to Monthly Summary and Annual
     Totals
3.  Provides monthly reconciliations
4. Provides automatic totalling of “3rd Party” collections and
 payments. (eg CAFOD & similar) Plus helps balancing

 5. Currently used by approx 60% of Archdiocese
  Benefits : Many hours per month saved, much easier
  than doing it clerically
             Gift Aid Spreadsheet
Provides complete report for Archdiocese detailing totals
  collected by individuals who sign up to Gift Aid
       Automatically totalling collections and calculating the last
       payment date.

   Totally flexible, allows entries of collections:
   •    Gift Aid envelopes – minimum requirement
   To suit individual parish – any or none of the following :
   •Non Gift Aid Envelopes
   •Cash
   • Other special collections,
For the last two years this has been trialled and developed with
  the help of 6 parishes, it is now available for other parishes
                    Thanks

• This presentation will be available on the
  website rcadc.org early in May.
• If you would like to receive an email copy of
  the presentation please provide mailing
  details on the list on the table.
    • THANK YOU FOR THE CONTINUING
        SUPPORT TO YOUR PARISH AND
                      DIOCESE.

				
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