PCI Statement of Accounts 2008
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6mm off HEAD GENERAL ASSEMBLY A C C O 2009 2009 U N T S ACCOUNTS 2008 FOR THE YEAR ENDED 31 DECEMBER 2008 2 0 0 8 ACCOUNTS, BELFAST, FOR 2008 1 THE PRESBYTERIAN CHURCH IN IRELAND SUMMARY INDEX • Introduction to Accounts 2008 • Accounts of the Boards of the General Assembly of the Presbyterian Church in Ireland, prepared in accordance with the “Statement of Recommended Practice: Accounting and Reporting by Charities” (Revised 2005) • Statement of Liquid Funds • General Board - Peacemaking Program • Board of Communications • Board of Mission Overseas • Board of Mission in Ireland • Board of Social Witness • Board of Youth and Children’s Ministry • Board of Education • Board of Christian Training • Board of Finance and Personnel • United Appeal Board • Presbyterian Women • Special Appeals • Accounts of the Trustees of the Presbyterian Church in Ireland, prepared in accordance with the “Statement of Recommended Practice: Accounting and Reporting by Charities” (Revised 2005) • Local Bible Fund • Old Age, Presbyterian Women’s and Indigent Ladies’ Funds • Sir Thomas McClure Bequest • PCI Ministers’ Pension Scheme (1978) • PCI Pension and Life Assurance Scheme (Staff pension scheme) • PCI PWA/Overseas Board/Irish Mission Retirement and Death Benefits Scheme • 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, BELFAST, FOR 2008 THE PRESBYTERIAN CHURCH IN IRELAND INTRODUCTION TO ACCOUNTS 2008 The Board of Finance and Personnel presents the Accounts Book for the year ended 31 December 2008. It includes two sets of summary accounts, which have been prepared in accordance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (Revised 2005). One set is for the Trustees of the Presbyterian Church in Ireland and the other is the consolidated accounts of the Boards of the General Assembly. Ernst & Young’s audit reports are attached to these accounts. The Accounts Book also contains the individual accounts for over 90 different activities of the Boards of the General Assembly and these have been grouped by Board. Ernst & Young have attached a report to the accounts of each Board to confirm they have been incorporated into the consolidated accounts of the Boards of the General Assembly. The accounts for each of the funds under the responsibility of the Trustees of the Presbyterian Church in Ireland, the Church Pension schemes and some other Funds are also included in the Accounts Book. COMMENTARY ON THE SORP ACCOUNTS FOR THE BOARDS OF THE GENERAL ASSEMBLY During the year there was a surplus of income over expenditure (before accounting for any change in the value of investments) of £1,339,753 (2007 - £772,374). The value of investments decreased by £6,372,360 during 2008 (2007 decrease of £306,192) and overall funds have decreased from £68,680,856 to £63,648,249. The following comments explain the main changes from 2007. Central Income increased by 2.8% from £22,117,701 to £22,746,233. The main items impacting on this are detailed below; - Income from assessments. This has increased by 1.5% from £3,759,342 to £3,814,722. Assessments are based on the previous year’s stipend and the overall rate increased from 62.25p in 2007 to 64.75p in 2008. The assessment rates per £ of stipend were as follows. 2008 2007 Central Ministry Fund 18.00p 16.00p Retired Ministers Fund 6.00p 7.00p Widows of Ministers Fund 5.50p 6.25p Prolonged Disability Fund 0.25p 0.50p Incidental Fund (incl 0.25p for Peninsula) 5.00p 6.00p Ministerial Development Fund 0.25p 0.25p Special Assembly 0.25p 0.25p Church House External Repairs 3.50p 3.50p SUB TOTAL 38.75p 39.75p Ministers Pension Scheme (1978) 26.00p 22.50p TOTAL 64.75p 62.25p - United Appeal income. Total income from congregations decreased by 2.4% from £3,318,537 to £3,237,886. The overall appeal was not achieved. Fifty-two congregations had not contribution by the closing date for the appeal although £199,694 has subsequently been received. - Income for the World Development Appeal was £711,371 compared to £683,226 in 2007. - No new Special Appeal was launched during 2008 but £48,359 was received in respect of previous appeals. In 2007, £294,948 was received and this included £271,028 for the Darfur appeal. ACCOUNTS, BELFAST, FOR 2008 3 - Income from legacies. This increased from £847,567 in 2007 to £901,779 in 2008 and includes a bequest of £452,726 for the benefit of the Board of Mission Overseas. In total, the Board of Mission Overseas received bequest income of £680,597. - Investment Income increased from £2,112,692 in 2007 to £2,282,067 in 2008. This was primarily due to an increase in the dividend from the General Investment Fund from 31p per share in 2007 to 33p per share in 2008. The increase is not due to additional income from dividends on investments but because of a release from the dividend equalisation reserves. The balance on this is restricted under the rules of the General investment Fund to a percentage of the value of the underlying investments. As the value of these decreased during 2008 there was a release from the dividend equalisation reserve. There was also an increase in interest earned on monies held on deposit. Despite reductions in bank base rates towards the end of the year, which resulted in the average rate earned for 2008 being 5.75% compared to 6.00% in 2007, there was an increase in the average level of funds held on deposit. - Residents’ fees (Residential Homes). These have increased by 4.05% from £4,670,518 to £4,899,663. The basic rate received by the Residential Trust in 2008 was £405 per resident per week (from April 2008) (2007 - £390, 2006 - £360, 2005- £300) and this reflects a 3.85% increase on 2008. (Rate to increase to £415 from 1 April 2009). Occupancy levels have also increased slightly from 2007. - Income from Church Publications. Sales of magazines increased from £242,739 to £267,592.This includes Wider World, which increased from £64,081 to £87,920 reflecting an increase in the subscription rate from £3 to £4 from January 2008. Advertising income decreased slightly from £55,680 to £54,549. - Income from Union Theological College fees, excluding those from the Student Bursary Fund, shows a slight decrease from £452,485 to £437,974 because of less income from “member” training. Fee income for students training for the ministry has increased from £115,892 to £129,036. Overall income levels are similar to 2007. Central Expenditure has increased by 0.29% from £21,345,327 to £21,406,480. The main reasons for this are - The Board of Finance and Personnel agreed a 3.5% increase in salaries in line with inflation from 1 January 2008. Following an actuarial valuation of the Presbyterian Church in Ireland Pension and Life Assurance Plan (the “Staff” Scheme) the contribution rate from the Church increased, with effect from 1 April 2007, from 20.85% to 25.1%. 2008 reflects the full year cost of this increase. The financial impact of these changes is reflected in individual Board accounts. - The Board of Communications expenditure decreased from £316,446 to £312,402 with individual expenses categories showing no major change from the previous year - The expenditure of the Overseas Board has increased by 4.0% from £3,104,754 to £3,230,267. The amount expended on the support of personnel overseas shows a slight reduction when compared to 2007, but there has been an increase in the amounts received for the support of overseas projects, which has in turn resulted in an increase in expenditure as this income, has been forwarded to the various projects. Grants in support of partner Churches increased from £177,723 to £232,826. Grants to Tear Fund and Christian Aid provided through World Development increased from £640,000 to £730,000. -The Board of Mission in Ireland’s expenditure decreased substantially from £3,320,766 in 2007 to £2,479,625 in 2008. While 2008 reflects an increase in staff costs due to changes in the executive and administrative team 2007 included refurbishment work to Taughmonagh Presbyterian Church and capital grants provided towards the purchase of manses in Arklow and Tullamore. 4 ACCOUNTS, BELFAST, FOR 2008 - The Board of Social Witness’s expenditure increased by 7.2% from £6,242,513 to £6,694,044. A significant proportion of the costs of the Board relate to the running of the Residential Homes and these have increased by 4.9% reflecting increased regulatory and heating cost. As a result the residential homes show an overall operating deficit compared to a surplus in 2007. Many of the Boards other projects have seen an increase in expenditure due to fuel costs. An increase in staffing and repair expenditure in the Board’s drug and rehabilitation of offenders programmes has also contributed to an overall increase in the Boards cost. - The expenditure of the Board of Youth and Children’s Ministry decreased by 6.7% from £718,370 to £670,220. This reflects a reduction in staff cost and the cost of events. - The Board of Education’s expenditure reflects a small level of grants. - The Board of Christian Training costs have increased from £1,414,777 to £1,476,600. While there has been a slight reduction in the grants to ministry students this has been offset by an increase in pension costs and outside lecturers’ fees. - The costs of the Board of Finance and Personnel have increased by 8.75% from £5,070,916 to £5,510,786.