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Financial Report to 31 December 2006 (Un-audited)
Below are the General Assembly accounts for the six months to 31 December 2006 as reported to the Council of Assembly and the Resource Subcommittee. These accounts have not been audited and comprise of
Key Points
1. Financial year-to-date operating surplus is $362k compared to a budget of $148k.
2. Income on investments includes $293k in inaccessible interest on specific purpose trusts and deposits in the Presbyterian Investment Fund. This means the accessible operating surplus is $69k ($362k - $293k).
3. Total income of $3.716m is 6% over budget mainly due to income from Gifts and Donations being $187k over budget.
4. Gifts and Donations (income) has been received as follows ($000’s):
School of Ministry | 112 |
Kids Friendly project | 95 |
PI Synod | 76 |
Global Mission | 159 |
National Mission Enabler | 12 |
Archives | 10 |
Other Gifts and Donations received | 20 |
| 484 |
5. Total operating expenses are on budget at $3.353m. Significant Budget variances include:
- Staff costs $10k under budget (and $83k or 9% less than the corresponding period last year)
- Miscellaneous costs 61k under budget
- Communication costs 18k under budget
- Grants and Donations, at $450k are 77k (17%) over budget due to greater than expected income.
6. Grants and Donations (expenditure) includes General Assembly grants to ($’000):
Moderator | 17 |
CASI | 13 |
Hewitson Library | 40 |
Te Aka Puaho | 68 |
There have also been grants and donations from:
Youth Ministry | 1 |
Kids Friendly | 10 |
Centre of Christian Leadership | 50 |
Global Mission Office | 161 |
Presbyterian Foundation (accrued) | 90 |
| 450 |
7. Costs associated with General Assembly in September were $225k and incorporated in miscellaneous costs. These were offset by income from registrations of the same amount and include other income.
8. The balance of Presbyterian Foundation borrowings of $268k, included as part of Accounts Payable and Accruals at 30 June, has been repaid since 1 July.
9. Year to date unpaid Assembly Assessment (AA) is $248k which is 10% of billings. Total unpaid AA from this and previous years now stands at $1,524k. As AA is used to fund General Assembly operations parishes that do not pay are in effect being subsidized by other those that do. A document on how AA is used to fund church operations will be released shortly by Financial Services.
Summary
The half year results show a continuation of the strong performance achieved last financial year, with greater than expected income and control over expenditure resulting in an operating surplus in excess of that budgeted. The improvement in cash flows allows the church to fund its operations and reduce liabilities without having to access funds made available from the sale of Laughton House.
It is important to remember that a proportion of income, therefore operating surplus, is unavailable to fund General Assembly operations because it is generated from interest from investments that are restricted to specific purposes. The accessible operating surplus for the period is $69k, significantly short of the declared operating surplus of $362k, but providing a small but favorable start to the second half of the financial year.
John Trainor
Convener
Resource Subcommittee
Cunningham Atchison
Deputy Convener
Resource Subcommittee
