2006/07 has seen a consolidation of financial performance building on the operating surplus of last year. The adjusted operating surplus was $397,000 compared to a budgeted surplus of $64,000. Adjusted revenue for the period was $540,000 (8 percent) over budget while operating expenses were $207,000 (3 percent) under budget. In addition an investment property located in Christchurch provided revaluation gains of $379,000.
|06/07 Actual||06/07 Budget||05/06 Actual|
|Less inaccessible income||(240)||(233)||(200)|
|Adjusted operating surplus||397||64||680|
The revenue of Assembly has been reduced by $240,000 in the above table. This amount comprises interest income on various trusts whose income is currently inaccessible. Inclusion of the amount distorts the level of income available to meet Assembly expenses.
- Revenue remained about the same as 2005/06. Last year’s gain on the sale of property (Laughton House) of $380,000 was partly offset this year by receipt of interest on the proceeds of the sale.
- Property Income decreased by $90,000 due to discontinued rental income on Laughton House.
- Income from Gifts and Donations of $958,000 was $363,000 over budget and reflects a continuation of the generous level of giving recorded in 2005/06.
- Other income and miscellaneous expenses were both greater than 2005/06 because of the expenses incurred for the GA06 conference and the associated income from registration fees.
- Staff costs increased by $80,000 on last year due to increased staff levels in the School of Ministry and Youth Ministry functions. Staff costs remained under budget for the year.
Grants and Donations expense were $40,000 greater than last year because of the higher than budgeted donation income received. Global Mission accounts for the bulk of this extra income.
- Sundry expenses include significant items such as the cost of the GA06 conference (about $220,000) bursaries and allowances paid to School of Ministry students ($305,000) and Consultants’ costs ($168,000).
- Money that Assembly had borrowed from the Presbyterian Foundation amounting to $269,000 was repaid during the year.
- In contrast to the previous year, there was no revaluation of General Assembly owned houses in Dunedin, used to house School of Ministry Students.
- Council of World Mission (CWM) Funds on deposit increase by $475,000 during the year. The final instalment of Mission Program Resource Fund (2) was received in July 2006 and $147,000 previously granted to Te Aka Puaho was refunded.
- Presbyterian Investment Fund (PIF) deposits of Assembly prior to the current year have been recorded as a current asset. The bulk of the funds on deposit with the PIF relate to trusts that are capital restricted, with only the interest available to Assembly. In the 2006/07 accounts all such trusts (amounting to $12.5 million in total) have been treated as non-current.
- Total funds in PIF has increased by $1,094,000 to $15,772,000 mainly because of compounding non-accessible interest and an increase in CWM funds.
Assembly is now operating in a positive cash flow situation because of two major factors:
- The identification of PIF trusts where the purpose of the original bequest can be fulfilled has enabled the interest to become accessible and available to be transferred to cash. This allowed interest of about $350,000 to be accessed during the year.
- The Council of Assembly has decided that interest generated by the Laughton Fund (about $300,000 per annum) may be used for Church operations.
Convenor of Resource Sub-committee