2009/2010 General Assembly budget

The 2009/10 budget has been produced during a time of economic uncertainty and after a year of dramatically decreasing interest rates.

The reduction in interest rates during the past year is the most significant factor in our decrease in budgeted operating income, with budgeted income from investments decreasing by $530,000 to $896,000. This has contributed to a budgeted operating deficit of $334,000. When the 2008/09 budget was set, interest rates were 8 percent, whereas the current budget uses an interest rate of 4.5 percent. This deficit will be funded from previously generated surpluses. The Council is comfortable with this use of accumulated reserves to fund a short-term operating deficit.

The other notable feature of this budget is expenditure of $750,000 on the Archives and Knox Centre development, which was approved by General Assembly 2008. This one-off expense is entirely funded by funds accumulated through the sale of School of Ministry houses and general reserves.

We recognise that parishes are experiencing financial constraints so budgeted Assembly Assessment will remain unchanged for the 2009/10 year. Assembly Assessment now represents 9.0 percent of total parish income (reduced from 9.4 percent in 2008/09).

Budgeted staff, travel and administration costs have decreased by $333,000 or 22 percent so that they more accurately reflect actual expenditure. Service team leaders are aware of the need for restraint and have reduced administrative costs accordingly. Overall budgeted operating expenditure of $6,063,000 is 1 percent less than the previous year’s budget.

The provision for non-payment of Assembly Assessment is reduced by 19 percent. This is possible because of a significant increase in parish payments over the past two years.

Council acknowledges the work of the Assembly finance team and the Resource sub-committee in putting together the budget. We welcome your questions and comments, which can be directed to the Convenor of the Resource sub-committee, Cunningham Atchison, or to the Finance Manager, Brendan Sweeney.

On behalf of the Council of Assembly and the Resource sub-committee

Emma Keown                                              Cunningham Atchison
Convenor Council of Assembly                      Convenor Resource sub-committee

Table 1: Comparison between 2008/09 and 2009/10 budgets

  Budget 2008/09 $’000 Budget 2009/10 $’000 Variance $’000 Variance %
         
Income        
Assembly Assessment 2,886 2,886 - 0%
CV contributions 396 407 11 3%
Investment income 1426 896 (530) -37%
Property income 138 161 23 17%
Grants 697 734 37 5%
Donations 268 223 (45) -17%
Parish intern contribution 156 266 110 71%
Financial services 130 130 - 0%
Other income 28 26 (2) -7%
Total income 6,125 5,729 (396) -6%
         
Operating expenditure        
Remuneration 2,783 2,799 (16) 1%
Staff expenses 293 220 73 -25%
Travel and accommodation 346 308 38 -11%
Property costs 195 287 (92) 47%
Grants and donations 738 773 (35) 5%
Administration 793 675 118 -15%
Publications 173 202 (29) 17%
Student training 389 542 (153) 39%
Sundry costs 130 26 104 -80%
AA provision 285 231 54 -19%
Total expenses 6,125 6,063 62 -1%
         
Operating surplus/(deficit) - (334) (334)  
         
Expenditure on Knox Centre development    
  - 750 (750)  

 Table 2: Grants and donation expense

  2008/09 Budget   $’000 2009/10 Budget    $’000 Variance %
       
Hewitson Library 80 80 0%
Global Mission 200 370 85%
Moderator 36 - -100%
Presbyterian Foundation 190 147 -23%
Te Aka Puaho 89 89 0%
Amorangi Training 50 20 -60%
Turakina Maori Girls College - 22 100%
Chaplaincy 50 - -100%
UCANZ 40 42 5%
Bioethics 3 3 0%
Total Grants 738 773 5%

Expenditure on Global Mission is funded primarily from donations, grants and from interest income on reserves that are held specifically for Global Mission.

Table 3: 2009/10 Assembly Assessment Calculation

    2009/10 2008/9   2009/10 Variance
Recovery Amount        
Assembly Assessment 1,666,594 1,705,558   -2%
Beneficiary Fund 1,219,406 1,180,442   3%
Total to be recovered 2,886,000 2,886,000   0%
           
BF as % of AA 42.25% 40.90%   3%
           
Membership Recovery (50%) 1,443,000 1,443,000   0%
Income Recovery (50%) 1,443,000 1,443,000   0%
    2,886,000 2,886,000   0%
           
Parish Statistics (Excluding Te Aka Puaho)      
Communicant Members 27,454 28,192   -3%
Accessible Income 32,144,769 30,174,656   7%
           
AA Breakdown        
AA per member 52.56 51.18   3%
AA as % of Income 4.49% 4.78%   -6%
           
Suggested Charging Range  (Total AA / Accessible Income)  
Minimum   7.75% 7.75%   0%
Maximum   13.75% 13.75%   0%
           
Amount to be Collected (excl GST) 2,886,418 2,837,096   2%
           
% of Accessible Income 9.0% 9.6%    

 

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