PCI Statement of Accounts 2015
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GENERAL ASSEMBLY 2016 2016 ACCOUNTS 2015 FOR THE YEAR ENDED 31 DECEMBER 2015 ACCOUNTS 2015 1 THE PRESBYTERIAN CHURCH IN IRELAND SUMMARY INDEX • Introduction to Accounts 2015 • Accounts of the General Assembly of the Presbyterian Church in Ireland incorporating the financial statements of the Trustees, prepared in accordance with the “Statement of Recommended Practice: Accounting and Reporting by Charities” (FRS 102) • Statement of Liquid Funds • General Council • Council for Global Mission • Council for Mission in Ireland • Council for Social Witness • Council for Congregational Life and Witness • Council for Training in Ministry • Accounts of the Trustees of the Presbyterian Church in Ireland, prepared in accordance with the “Statement of Recommended Practice: Accounting and Reporting by Charities” (FRS 102) • The Presbyterian Church Investment Fund (commonly known as the General Investment Fund) • Trust Estate of Mr John Getty • Local Bible Fund • Old Age, Presbyterian Women’s and Indigent Ladies’ Funds • Sir Thomas McClure Bequest • Presbyterian Church in Ireland Pension Scheme (2009) • Certificate from the General Assembly’s Solicitor regarding deeds held in Church House • Published Bequests for the Presbyterian Church in Ireland • Detailed index 2 ACCOUNTS 2015 ACCOUNTS 2015 3 THE PRESBYTERIAN CHURCH IN IRELAND INTRODUCTION TO ACCOUNTS 2015 The Code, the book of the constitution and government of the Presbyterian Church in Ireland, in paragraph Para 272(11)(b) places a responsibility on the General Council to “prepare and present the annual accounts to the General Assembly...” This Accounts Book includes three sets of summary accounts, – the accounts of the General Assembly of the Presbyterian Church in Ireland which incorporate the accounts of the various General Assembly Councils and those of the Trustees (as detailed in (ii)). – the accounts of the Trustees of the Presbyterian Church in Ireland, which incorporate the various Trust Funds they are responsible for such as the Commutation Fund, Magee Fund, Lindsay Memorial Fund, Crescent Loan Fund and a number of other Trust Funds (but excluding the General Investment Fund). – The Presbyterian Church Investment Fund or the General Investment Fund. The General Assembly’s auditors, Ernst & Young, have given their audit opinion on these accounts. The accounts for the General Assembly and the Trustees have been prepared in accordance with the Charities SORP (FRS102) “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015)”. The Accounts Book also contains individual accounts for the various activities of the Councils of the General Assembly and these have been grouped by Council. Ernst & Young have attached a report to these accounts to confirm they have been incorporated into the consolidated accounts of the Councils of the General Assembly on which they have given their audit opinion. At the June 2014 General Assembly approval was given to introduce new church structures from 1 January 2015. On that date, all former Boards of the General Assembly ceased to exist and a new Council structure came into being. Where possible comparative figures for activities for 2014 have been included. The Accounts Book includes accounts for the individual funds under the responsibility of the Trustees of the Presbyterian Church in Ireland, the Church Pension Scheme, The Old Age, Presbyterian Women’s and Indigent Ladies’ Funds (although these not under the control of the General Assembly) as well as some other Trust Funds. 4 ACCOUNTS 2015 THE PRESBYTERIAN CHURCH IN IRELAND INTRODUCTION TO ACCOUNTS 2015 COMMENTARY ON THE SORP ACCOUNTS FOR THE BOARDS OF THE GENERAL ASSEMBLY During the year, there was a deficit of income over expenditure (before accounting for any change in the value of investments or the pension liability) of £931,671 (2014 – deficit of £1,876,142) – See the Statement of Financial Activities (SOFA). The deficit for the year reflects the decision to utilise reserves within some of the Assessment and United Appeal Funds. Some of the activities within the Council for Social Witness are operating at a deficit and timing differences between the receipt of donations in one year and payment in the following year has had an impact. During 2015 the value of property decreased by £219,225 reflecting a reassessment of the carrying value of one particular property. There was little overall movement in investment values from the start to end of the year. In 2015 there was an actuarial gain on the provision for pension benefits of £12,371,870 (2014 loss of £11,330,000). This was due to an improvement in investment values and a reduction in scheme liabilities. The impact of the decision by the General Assembly in 2015 to pay the former bonus to ministers in retirement only if aged over 56 on 1 January 2015 has reduced the unfunded pension liability. A prior year adjustment has been made to reduce the pension liability in relation to the Council for Social Witness Pension Trust Scheme. As a result, overall funds have increased from £33,587,115 to £46,098,175. The following comments explain the main changes in income and expenditure from 2014. Central Income for 2015 was £26,266,636 compared to £25,809,259 for 2014 i.e. an increase of £457,377. The main changes in income are detailed below; – Income from congregational assessments. This increased by 2.7% from £7,321,061 to £7,519,059. Assessment for all funds, other than the Pension Scheme Fund, are based on a percentage of a congregation’s assessable income. The assessment bands and rates for 2015 with comparison for 2014 were as follows Assessment Assessable Assessable 2015 2014 Band Income Income Assessment Assessment From To Rate Rate 1 0 65,000 14.50% 14.00% 2 65,000 130,000 10.75% 10.50% 3 130,000 195,000 7.25% 7.00% 4 195,000 260,000 3.50% 3.50% 5 260,000 And above 0.00% 0.00% ACCOUNTS 2015 5 THE PRESBYTERIAN CHURCH IN IRELAND INTRODUCTION TO ACCOUNTS 2015 The amount received from congregations was allocated to the various assessment funds as follows 2015 2014 Central Ministry Fund 55.79% 59.35% Retired Ministers’ Fund 9.66% 1.10% Widows of Ministers Fund 0.54% 6.59% Prolonged Disability Fund 0.54% 0.64% Incidental Fund 16.09% 14.28% Ministerial Development Fund 1.07% 0.55% Sick Supply Fund 0.32% 0.57% Students Bursary Fund 8.05% 8.79% Church House Repairs Fund 7.94% 8.13% 100.00% 100.00% The assessment for the Pension Scheme Fund for 2015 was 27.5% (2014, 27.5%) of the stipend paid to the minister during the year. The amounts allocated to each of the assessment funds are shown in note 2 to the accounts. – United Appeal income. Total income from congregations (which includes amounts received late for the previous year’s appeal) increased by 0.8% from £3,262,166 to £3,286,850. While the overall appeal target for 2015 was not reached at the cut-off date and twenty-three congregations had not contributed by then a further £89,361 (at date of this report) has subsequently been received giving a total of £3,260,044 against the 2015 “Target of Honour” of £3,325,000. – World Development Appeal. In 2015, £559,140 was raised for the Appeal compared to £547,228 in 2014. – Special Appeals. During 2015 £650,695 was raised - £566,675 for Nepal, £89,130 for South Sudan and £2,630 for the Philippines. During 2014, £429,910 was raised - £244,479 for South Sudan and £185,431 for the Philippines. – Gifts and Donations. Gifts and donations have reduced from £866,662 to £542,844. In 2014, circa £330k was included in relation to Lawnfield House, Newcastle, which the former Board of Social Witness took over the running of. – Legacy Income. This decreased from £383,817 in 2014 to £286,842 in 2015. – Investment Income was largely unchanged - £1,333,060 in 2015 compared to £1.340,565 in 2014. Investment income includes the dividend on investments held by Councils in the General Investment Fund, which was 26p per share in both years. – Residential Homes etc. There was an increase, of 1.5%, in fee income relating to residents’ in Residential Homes - from £5,530,633 to £5,615,418. The basic residential fee rate received by Homes in 2015 was £470 (from April 2015) which compared to £461 in 2014 (from April 2014) (£450 in 2013 (from April 2013)). Occupancy rates remain at a high level in most facilities. 6 ACCOUNTS 2015 THE PRESBYTERIAN CHURCH IN IRELAND INTRODUCTION TO ACCOUNTS 2015 – Income from Church Publications. Sales decreased from £257,107 to £231,707 and subscription rates remained unchanged. Advertising income was £31,170 (2014 - £33,443). – Income from Union Theological College fees, excluding those from the Students Bursary Fund decreased from £711,721 to £643,553 reflecting student numbers. Central Expenditure decreased by 1.8% from £27,685,401 to £27,198,307. Due to the change in Church structures from 1 January 2015 comparison between Council and former Boards in many cases are not relevant due to the transfer of activities. However the main points to note are: – The former Board of Finance and Personnel agreed that salaries should increase by 2% (pro-rata for part time staff) from 1 January 2015 with incremental point increases applying for years of service. The pension contribution rate from the Church was 27.5% in 2015 and 2014 for those eligible to join the Presbyterian Church in Ireland Pension Scheme (2009). An auto-enrolment pension scheme was introduced on 1 February 2014 in accordance with regulations with the church contributing at the rate of 6%.