Archdiocese of Cardiff

Finance briefing for parishes April 2010

Finance Briefing Agenda

Diocesan financial results for year ending 31 March 2009Parish Assessments for 2010/11Parish Audits Parish financial managementParish budgetsFacing the FuturePapal visit 2010Gift Aid 2010/11Finance Spreadsheets Questions and comments

Financial results for 2008-9Curia 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

C haritable Ac tiv ities : 2008/9 2007/8£k £k

P aris h s upport c os ts -Repairs and maintenance 838 807Light, heat, rates and insurance 543 513Office expenses 200 190Salaries and NIC 247 252Liturgical costs 225 258Depreciation 244 252Other costs 1509 1,442

3806 3714C lerg y welfare c os ts -Clergy allowances, including travel 473 452Housekeeping and sundries 160 152House expenses 95 105Resigned and infirm clergy 175 135Pension contributions 50 51Clergy training 39 50

992 945S c hools s upport c os ts -Schools commission 71 63Religious education commission 54 55Catholic Education Service 16 16

141 134

T otal C haritable Ac tiv ities 4939 4793

ANAL Y S IS O F E X P E NDIT UR E

Financial results for 2008-9Summary Balance Sheet

£k £k £k £kFixed AssetsTangible Fixed Assets 8,868 9,112Investments 3,981 4,744

12,849 13,856Current AssetsProperties awaiting sale 62 465Debtors & Prepayments 909 773Cash & Bank Balances 6,103 5,959

7,074 7,197

Current LiabilitiesCreditors & 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

Dioces an C apital 18,844 19,703

F undsRestricted 3,355 3,818Unrestricted:Designated 1,121 737General 14,368 15,148

18,844 19,703

31st March 2009 31st March 2008

Financial results for 2008-9RESTRICTED FUNDS 31 Ma rc h 2008

£k £k

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

3,355 3,818

Designated Funds£k £k

Housekeepers pension fund 281 339Fund for retired housekeeper 12 15Sea mission 35 44Clergy welfare fund 108 108Schools development fund 291 11Campaign fund 277 100Property fund 117 120

1,121 737

Balances at

31 March 2009

Financial results for 2008-92008/9 2008/9 -H/LB udg et* Ac tual

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

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

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

S urplus / -defic it 0 408 408

*As us ed in the development of 2007/8 As s es s ments

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 2010-112009/10 2010/11 -H /L

Budget Budget£K £K £K

CURIA Establishment Expenses 44 120 -76 Repairs to Archbishop's House £80K

Administrative 211 202 10Finance and General 169 87 82 Reduce interest on parish deposits to 0.75%

Schools Commission 68 75 -7Priests' training 51 30 21Diocesan Personnel 84 86 -2Commissions and Establishments 268 286 -18 Family LifeMiscellaneous 53 53 0Contingency 50 27 23Sub Total 998 966 32Depreciation 244 244 0Total Costs 1242 1210 33Less: buildings depreciation 243 243 0Income excl assessments 465 375 350 25 R educed bank interes t and dividends £37k

Net costs 624 617 8 offs et by National Grant for F amily L ife £12k

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

TOTAL COSTSTotal net costs 813 837 -24Assessments 718 726 -8Surplus / -deficit -95 -110 16

Parish Assessments for 2010-11

£ thousands

2009/10 2010/11 2009/10 2010/11Total costs 1242.1 1209.6 193.6 224.7Less: 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

CURIA CLERGY WELFARE

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

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

Parish record keeping is generally satisfactory 5Cannot provide assurance that books and records are wholly satisfactory 1

SUMMARY OF AUDIT RECOMMENDATIONS - 2009

SUMMARY OF FINDINGS

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 ManagementIssue Stage 1 Stage 2 Stage 3

Keep underYes Commitments met? Yes Review

Review of submitted Implement cost savingsyear end accounts No

Meeting between Parish Weekly allowanceNo Priest and Parish

Treasurer writes to Parish Priest consults finance committee Interest remission forAnnual 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 Generalcorrection one month Appoint Fund raiser

Prepare written agreement.Advise Diocesan Finance Planned givingCommittee campaign

Appeals to richer parishes

Support from PoorMissions Fund

Appoint administratorLoan not being repaid

Sell property

Parish amalgamation

First occurrence Second occurrence Sanctions

Keep underYes Review

Temporary removalDiocesan Finance Treasurer writes to of cheque book/debitsample parish bank Parish Priest Application made? cardstatements requesting retrospective Meeting between Parish

application to Archbishop No Priest, Change bank mandatewho will place it before the Vicar General and Diocesan to require secondtrustees Treasurer within a month signature of Treasurer

Unauthorised expenditure Any others?

Phil King 9 February 2010

PROCESS FOR DEALING WITH PARISH FINANCIAL ISSUES

Facing the Future

Working in Diocese

Working outside Diocese

Sick Leave

Resigned from office

Total Seminarians From Other Dioceses

45** 3 1 18 65 0 347 4 1 13 65 1 1

Working in Parishes

Particular Ministries

17 222 3

** Age 70 – 80 years: 3 priests Permanent Deacons

14

CLERGY IN THE ARCHDIOCESE OF CARDIFFas of 1st April 2010

Diocesan Priests

Religious Priests

Age 80+ years: 3 priests

Facing the FutureTHE CHANGING FACE OF THE DIOCESE

PARISHES WITHPART/

NON RESIDENTPRIESTS

PARISHESMERGED/CLUSTERED

SUNDAYMASSCENTRES/CHURCHES

CLOSED

Bromyard Barry: St Helen/ St Michael CourtfieldCardiff: Christ the King Newbridge/Pontllanfaith/ Risca RhooseCardiff: St Clare Newport (St Anne/St David/St David

Lewis/St Mary/St Michael/St Basil)Pencoed

Cardiff: St Cuthbert Pontypool/Griffithstown/Abersychan/Blaenavon

Trethomas

Aberkenfig Rhondda (Tonypandy/Treorchy/Ferndale) SenghenyddCaerleon Cardiff: St Teilo/Our Lady of Lourdes Cwm

Abertillery/Brynmawr CaerauRoss/Courtfield/Ledbury Treharris

Ledbury Caerphilly/Senghenydd CwmcarnMerthyr Vale Penarth/Dinas Powys MardyPyle Merthyr/Merthyr Vale Llanharan

Aberdare/Hirwaun/Mountain Ash Whitchurch (Herefordshire)Rhymney Abercynon/Bargoed AbersychanBargoed Cwmbran/Pontnewydd Llanhilleth

Newport: St Gabriel/Caerleon GriffithstownMaesteg / Aberkenfig BartestreeTredegar / Rhymney BullinghamCardiff: St. Clare / St. Francis Fairwater(Cwmbran)Cardiff: Sacred Heart / St. Cuthbert Barry: St MichaelCardiff: St. Brigid / Christ the King Broad Oak

Ewyas HaroldLeintwardineFerndaleTreorchy

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

A pair of v

ery useful FREE

tools !!!!!!

!!!

Ordinary Accounts spreadsheetReplaces 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 balancing5. Currently used by approx 60% of ArchdioceseBenefits : Many hours per month saved, much easier than doing it clerically

Gift Aid SpreadsheetProvides complete report for Archdiocese

detailing totals collected by individuals who sign up to Gift Aid

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

Automatically totalling collections and calculating the last payment date.

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.