A REPORT FROM ST AMBROSE FINANCE COMMITTEE TO THE
PARISHIONERS OF THE PARISH. MARCH 2021.
As you will be aware from various newsletter items the
Finance Committee have been conducting reviews of the Parish’s financial
position given the continued annual losses that are being made. Losses are
being funded out of long-term reserves which sooner or later will run out unless
we put measures in place to stop this erosion of funds.
Below is a table summarising the position from 2013 to 2020.
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
|
Total
Income
|
£87653
|
£107662
|
£107292
|
£104992
|
£95072
|
£107770
|
£119617
|
£110896
|
|
Less Total Expenditure
|
£100318
|
£132351
|
£156139
|
£119371
|
£111682
|
£124331
|
£130803
|
£124205
|
|
Total
Annual Loss
|
(£12665)
|
(£24689)
|
(£48847)
|
(£14379)
|
(£16610)
|
(£16561)
|
(£11186)
|
(£13309)
|
|
Adjustment
for Exceptional expenses/ income roofing, boilers, pathways etc. taken
from Reserves.
|
(£5930)
|
£7200
|
£21908
|
|
|
£11121
|
£8071
|
£3670
|
|
Adjusted
annual loss
|
(£18595)
|
(£17489)
|
(£26939)
|
(£14379)
|
(£16610)
|
(£5440)
|
(£3115)
|
(£9639)
|
As can be seen we have consistently made losses over the
last seven years and this trend needs to be reversed.
For the year to 31st December 2021, we are
forecasting a further loss of £29768 and this is before any exceptional
expenditure. The Diocesan levies for 2021 are £21500 an increase of £5728
on 2020 and this increase contributes to the ongoing annual loss which confirms
that we continue to be living beyond our means.
At a Finance meeting on 24th February these
losses were discussed and we highlight below the pertinent areas we feel need
to be examined and appropriate action taken in order to halt the slide.
OFFERTORY GIVING CHANGES SINCE 2013
|
|
2020
|
2013
|
Change
from 2013 to 2020
|
Percentage
change from 2013 to 2020
|
|
Offertories Total
|
£36210
|
£55543
|
(£19333)
|
34.80%
|
|
Offertories
per 50 Week year
|
£724
|
£1111
|
(£387)
|
34.80%
|
MAJOR EXPENDITURE REVIEW
|
|
2020
|
2013
|
Change from 2013 to 2020
|
Percentage change from 2013
to 2020
|
|
Personnel/wages
|
£29093
|
£18236
|
£10857
|
59.50%
|
|
Per 52 Week year
|
£559
|
£351
|
£208
|
59.50%
|
Currently the Parish has 3 employees which includes the
servicing and regulating the bookings of the Parish Centre. These costs represent 80% of our offertories.
Notwithstanding the items listed above we will be
undertaking a rigorous and detailed housekeeping exercise on all costs to
ensure that we can deliver value to parishioners giving.
On the 31st December 2020 the total funds
available to the Parish to operate the Churches, House and Parish centre
amounted to £276874. At 31st December 2017 this amounted to £344350.
If we continue to make losses as
forecast then the Parish would run out of money in less than 10 years’ time.
Appendix A below gives a detailed analysis of the
Parish’s operating results for the year to 31st December 2020 and
the comparison figures for 2019 along with our current forecast for 2021.
PROPOSED ACTION PLAN.
. Conduct an in-depth review of all our cost centres and
accounting processes.
. Where possible and safe to do so ask for volunteers to
conduct some of the many small maintenance work items required on the fabric of
the Parish buildings
. Encourage Parishioners to increase their offertories; where possible to
include on line giving; contact Tim Yates
. Encourage Parishioners to donate for specific projects to
avoid Diocese levy.
. If able to Parishioners to consider leaving a bequest in
their Will.
. Consider any suggestions Parishioners may have or comments
they may wish to make which can be either sent by email to stambrosekidderminster@btinternet.com
or a note dropped off at the Presbytery. Please mark any correspondence as “Parish Finance Review
March2021”
St Ambrose Parish Finance Committee
24th February 2021
