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Financial Report to 31 December 2007 (Un-audited)

Below is the General Assembly accounts for the six months to 31 December 2007 as reported to the Council of Assembly and the Resource Sub-committee. These accounts, which have not been audited, comprise:

  • Statement of Financial Performance
  • Statement of Financial Position

Summary

The year-to-date performance in terms of operating surplus and cash position is pleasing and consolidates the performance of the past two years.  This is the third successive year where income has been above the level anticipated despite the best endevours of Resource to realistically budget Assembly’s receipts.

This higher than expected income has been brought about by strong financial support provided to a number of Assembly agencies through increased levels of grants and donations. It is also pleasing to see a number of additional parishes meeting both current Assembly Assessment and arrears.

In addition the strong cash position of Assembly has been significantly affected by the sale of a number of houses in Dunedin that are now surplus to requirements. These funds, or the income generated by them, will be used to meet leadership training expenses.

Assuming the same positive results continue into the second half, Assembly should be in a position to be able to fund additional high priority expenditure in 2008/09 as well as moving toward an Assembly Assessment target of 10% of assessable parish income.

Key Points

Statement of Financial Performance:

1.     Financial year-to-date operating surplus is $429k compared to a budget surplus of $210k.   

2.     Extraordinary Items, including prior period adjustments, total $272k, contributing to an adjusted operating surplus of $701k. Extraordinary items are:

  • $3k loss on sale of four Dunedin Houses sold between July and December.
  • $300k transferred from Provision for Doubtful Debt to Income due to a greater than expected collection of Assembly Assessment arrears from previous years.
  • The reversal of $55k in accrued expenses from previous years.
  • The accrual of $80k in study Leave liability for Ministers employed by General Assembly, that had not previously been recorded.

3.     Total income of $3.38m is 6% over budget. Variances include:

  • $43k over budget for investment income. This is primarily because deposits in the Presbyterian Investment Fund are greater than budgeted due to the deposit of $1.15m proceeds from the sale of property.
  • Income from Grants and Donations are $167k (32%) over budget, summarized: 

 

  YTD

$(000's)

 Budget

$(000's)

Variance

    (%)

 Knox centre for christian Leadership

  198

   181

    17

 Global Mission Office

  265

   200

    65

 National Mission Enabler

    63

     26

    37

 Archives

    31

     31

     -

 Kids Friendly Project

    94

    52

    42

 Communications

    30

    25

     5

 Total

   681

   515

  166

  • Sundry Income is $31k (63%) over budget because of income generated by the Knox center for Christian Leadership for registrations and lecture fees, as well as greater than expected Spanz sales and advertising revenue.

4.     Total expenditure of $2.95m is 1% under budget. Variances include:

  • Salaries are $60k (5%) over budget. Note the budget anticipated higher expenditure between January and June 2008 for National Mission and Knox Center for Leadership. The year to date expense is over budget because some of these costs were incurred in the first half of the year.
  • Both Staff Costs and Allowances and Travel Costs are under budget, by 50% and 27% respectively. This is largely due to setup and operating costs for leadership training and the youth ministry being delayed and now likely to be incurred in the second half of the financial year. 
  • Grants and Donations paid are $85k (24%) over budget. A higher level of grants and donations received has enabled the higher level of payments, as set out below:

 

  YTD

$(000's)

 Budget

$(000's)

Variance

    (%)

 Knox centre for christian Leadership

  106

   56

    50

 Global Mission Office

  147

    74

    73

 Kids Friendly Project

     5

      0

      5

 General Assembly to Te Aka Puaho

    57

    89

   (32)

 General Assembly to Moderator

    21

    18

      3

 General assembly to UCANZ

    20

    20

      0

 Presbyterian Foundation Grants

    60

    96

   (36)

 Other Grants

    25

     2

    23

 Total

   441

   355

    86

 

Statement of Financial Position

5.     Year to date Assembly Assessment Collection is 89.3% of total billings which means the shortfall in collection is $217k (budget $220k).  This is encouraging and reflects successful settlements of current and previous year arrears negotiated between a number of parishes and the Resource Committee. It may also reflect the reduction of Assembly Assessment as a proportion of parish assessable income achieved over the past two years.

6.     Total Ministers and Parish Loans have decreased by $320k to $1.477m.  

7.     Cash Reserves, which include unrestricted funds held by the Church Property Trustees as well as funds deposited with bankers, have increased by $172k to $977k

John Trainor                                                             Cunningham Atchison
Convener                                                                     Deputy Convener
Resource Subcommittee                                              Resource Subcommittee

To view either of the following reports click here, they are found on the last two pages.

  • Statement of financial performance for the six month period ended 31 December 2007
  • Statement of Financial position

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