Synod Appropriations and Allocations Ordinance 2005
Explanatory Report
Contents
- Introduction
- Income
- Allocations -
- Indication of intent for 2007 and 2008
- Recommendations
- Detail of individual appropriations and allocations (Attachment A)
1. In 2001 the Synod adopted the report 'Focussing Resources for the Gospel'. In the following year it approved the Synod Appropriations and Allocations Ordinance 2002 and Explanatory Report which acknowledged the Diocesan Mission and the Initial Goal 'to see at lease 10% of the population of the region of the Diocese in Bible-based churches in 10 years'. That 2002 Ordinance also established the target allocation percentages to be achieved across each of the Mission policy areas by 2005.
2. In 2004 the Synod adopted a report containing the target allocation percentages proposed by the Standing Committee for the triennium, 2006-2008. Those percentages, adjusted to reflect a minor reclassification of some projects funded by regional councils between Policy 2b and Policy 2a, have now been incorporated as the basis of the Synod Appropriations and Allocations Ordinance 2005 (the Ordinance).
3. As identified in the Standing Committee's report to the Synod in 2004, it is obvious that over the period of the Mission the total funds available to the Synod for appropriation for Mission purposes will not grow at anywhere near the rate that will be needed to fund the essential initiatives of the Mission if the Mission and Initial Goal are to be realized. The reason for this is simply that notwithstanding the best efforts of the Glebe Board in restructuring their asset portfolio and astutely managing the investments, it will not be possible to increase the average returns earned by the Diocesan Endowment at anything like the rate that would be required to match the growth anticipated by the Mission. In 2005 the Diocesan Endowment provided 83% of the total income available to the Synod, the balance coming from a number of smaller specific ordinance funds. The asset values held in these other funds has been declining quite significantly over recent years and the continuation of this trend will mean that the income available to Synod from this source is expected to decline substantially over the next triennium 2006-2008.
4. In the Standing Committee's 2004 report it was proposed to inject an additional $1 million in the form of a special appropriation from the assets of the GAB to be spread over the next 3 years. This Ordinance now proposes that figure be $1.5 million in order to provide a modest growth of total funds available through the 2006-2008 triennium.
5. The details of the income available to be appropriated from each of the various sources and the allocations proposed to be made to each of the specific organisations or programs are shown in the Attachment A to this report.
Glebe Administration Board (GAB)
6. The main source of income available to the Synod comes from the GAB and is distributed to Synod in accordance with a formula (established in 2002) specified in the Diocesan Endowment Ordinance. That formula provides that the distribution is based on a percentage of the average of 3 previous years net assets of the GAB.
7. In accordance with this formula, the amount available to be distributed by Synod in 2006 is 5.4% of the average of the net assets of years 2001, 2002 & 2003. In fact this amount, the calculation for which is shown below, is set aside in a provision in GAB's accounts in 2004, formally appropriated by ordinance in 2005 and allocated and spent in 2006.
Net assets of GAB at 31 December 2001 $161,274,407
Net assets of GAB at 31 December 2002 $147,855,503
Net assets of GAB at 31 December 2003 $156,835,354
Average of these 3 years net assets $155,321,755
Distribution to Synod (5.4% of above average) $8,387,375
8. The distributions in 2007 and 2008 follow the same format, although the calculation for 2008 remains an estimate at this stage because it will include the value of the net assets at 31 December 2005.
Other specific trust ordinances
9. The income from the other specific trust ordinances becomes available to Synod sooner since it is based on a distribution of the net surplus earned each year. For example, the income available to Synod in 2005 is based on the distributions provided (from the net surplus earned in 2003) in each entity's financial statements for the year ended 31 December 2003. Were it not for the release in 2005 of reserve funds that had accumulated under the Manly Ordinance, the total available to Synod from these specific trust ordinances would have been declining over recent years. This trend has accelerated with the substantial decline in net lease income earned on the property at No. 1 York Street leading to the suspension of distributions to the Synod from the St Philip's Sydney Ordinance.
Special appropriation
10. In its report to the Synod in 2004 the Standing Committee indicated that it proposed a special appropriation of $1 million from the assets of the GAB. This appropriation was to enable a modest increase from year to year in the total funds available to Synod. The Standing Committee is now recommending the special appropriation be $1.5 million, to be allocated over the 2006-2008 triennium with the majority in the first 2 years. The Standing Committee has been advised that the very good earnings result achieved by the GAB in 2003, and particularly in 2004, ensures that these funds are available -
- after setting aside the agreed proportion of net assets needed to fund the normal distribution to Synod,
- meeting known additional requirements this year (including a special appropriation for the Tribunal Appropriation Ordinance 2005), and
- allowing for the reinvestment of sufficient funds to preserve the real value of the Endowment.
11. To some degree this special appropriation will adversely impact on the future rate of growth of the GAB's net assets, and hence will reduce the funds available under the normal formula in later years. However, the Finance Committee, Mission Taskforce and the Standing Committee believe this is a prudent and modest price to pay in order to maintain the total allocations during this critical phase of the expansion of the Mission.
Support for Indigenous People's Ministry Fund
12. In 2002 the Synod passed the following resolution (25/02) -
'Synod recommends to the Standing Committee that priority be given under the Mission Strategy to resourcing Indigenous peoples' ministry by directing that a percentage of the proceeds from all sales of church trust property per annum be added to the Indigenous Peoples' Ministry Trust Fund for Indigenous ministry within the Diocese or by allocating continuing funding through the Synod Appropriations and Allocations Ordinance. Synod further urges each parish of the Diocese to generously support Indigenous ministry in the Diocese any way it can, for example, by giving a percentage of any land sales to the Indigenous Peoples' Ministry Trust Fund or by giving 1% of their net income to the fund or supporting existing Indigenous ministries at a local level in every possible way.'
13. In response to this resolution the Standing Committee appointed a committee to investigate and report on the ways in which regular annual funding could be added to the Indigenous People's Ministry Fund. The committee's report and recommendation were adopted by the Standing Committee and reported to the Synod in 2003.
14. The Standing Committee's report to the 2003 session of the Synod considered the funding question from three perspectives justice, the Diocesan Mission and financial clarity. The Standing Committee considered the suggestion that a percentage of the proceeds of all sales of church trust property per annum be added to the capital of the Fund, however it judged that such a method would not be a regular source of funding as it would be dependent on occasional sales of property. Furthermore, to take funds from such a source was considered to be neither equitable nor wise. The committee's recommendation, adopted by the Standing Committee, was for a percentage of the Synod's annual income to be applied toward the fund.
15. The recommendation contained in the Standing Committee's report to the 2003 session of Synod was -
'That 1% of the total income proposed to be appropriated in each year from 2006 onwards be applied as a capital addition to the Fund, before any other allocations are determined across mission policy areas. It is proposed that this recommendation be reflected in the form of the appropriations ordinance to have effect in 2006 and in subsequent years. The Standing Committee did not consider it expedient to recommend that this policy be implemented earlier than 2006 since its recommendations for funding in 2004 and 2005 had largely been settled at the time the committee's report was considered.'
16. After the request had been initiated by Synod, Standing Committee's response was reported to and endorsed by Synod in 2004, and so a special appropriation has been incorporated into the Schedule to this ordinance to give effect to that request.
Use of reserves
17. In 2006 the total available to the Synod includes the reversal of part of the reserves (held for projects that now come under Policy 1b) arising from unspent grants in previous years. This action has been necessary to compensate for the shortfall of actual income available from other specific trust ordinances, compared with the estimates provided in 2004 and on which the Policy Committees based their recommendation for specific allocations.
18. On the basis of the four fold policy developed to support the Diocesan Mission and the initial Goal, the Synod in 2004 approved the following percentages for the allocation of the available income in 2006-2008 -
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* These percentages have been adjusted to reflect a minor reclassification of some projects funded by regional councils from Policy 2b to Policy 2a in order to achieve consistency.
Policy committee
19. The Policy 1a Committee comprises Bishop Reg Piper (chairman), Canon John Cornford and Dr Kim Hawtrey.
20. In 2004 Bishop Piper formed task forces to promote three major ventures. While promoting these ventures he defined more precisely the task as the promotion of "Spirit-led Bible-informed reformation" rather than "spiritual renewal". These ventures have been executed in 2004 and early 2005 with highly motivated assistance from three different working partnerships. These ventures were -
The Prayer Warrior program
21. The partners in this program have been Diane Lamb, Doug Philpott (Wollongong office), Madeline Collins and Mark Hadley (Anglican Media). Prayer points were posted on the Anglican Media web site and people invited to become Prayer Warriors and commit themselves to pray for mission ventures posted on the web site for a period of six months. Both requests for prayer and answers to requests have been posted. This has been promoted through the senior staff, parishes and some diocesan organisations, especially Mother's Union (MU) and Anglican Retirement Villages (ARV). No Synod money has been spent on this venture to this date. All work has been through existing organisations or by volunteers.
Result: 184 Prayer Warriors have enlisted
"Forty Days with the Risen Lord" prayer journal
22. The partners in this venture have been the Rev Sarah Plummer, Mamie Long (interested persons) and Desiree O'Farrel (Anglican Youthworks). A personal prayer journal was produced for people in parishes to read significant passages in Luke's Gospel and Acts on God's Mission, to reflect on how the four policies, mission statement and fundamental aim of our mission should be informed by these passages, and to write out prayers which they could then pray to God. Prayers were concentrated on those people we would desire to enter the kingdom, those who might consider full-time ministry of the word and prayer, and avenues for new fellowships and congregations. Youthworks printed the booklets and parishes sold them. The project was seeded with $10,000 which was retrieved through sales. Profits went to Anglican Youthworks. Expenses were about $4500. Organisations and people volunteered time, work and materials to produce 1000 CDs and 400 DVDs for promotional purposes. Good stories of people being saved and others offering for full-time service have come in from individuals about answered prayer.
Result: All 7200 books sold out.
Ascension Day Prayer Assemblies
23. The major partner in this venture has been Glenda McSorley (MU). Glenda collected prayer points from the Archbishop, regional bishops, diocesan organisations and missionary bodies, printed them in booklet form and distributed them to the parishes. The Prayer Assemblies were promoted through the senior staff and parish clergy.
Result: Numbers of Assemblies in churches, workplaces and homes on Ascension Day. 80-100 were consistently in attendance at the 9:30 AM to 3:30 PM MU assembly at St Philip's York Street.
The Informing Strategies
24. Encourage Spirit-led Bible-informed thinking about the mission.
25. Promote reading of Luke's writings as a way of informing our mission.
26. Promote prayer by "ordinary people" in our churches for -
(a) Specific people being converted.
(b) Fellowships being set up in specifically designated new venues.
(c) Specific people being called to full-time ministry of the word.
(d) Reforming our strategies to biblical rather than worldly methodologies.
27. Promote "the people" doing this at common times.
28. Use existing networks/events and secure voluntary participation so as to entrench policy 1 in diocesan life.
Major Obstacles
29. Reluctance for God's people to make time for persevering, watchful prayer for progressing the kingdom.
30. Unwillingness for God's people to believe that God will prosper his ways of bringing in the kingdom.
31. The mission being lost in so much other activity by God's people.
Future plans and grant allocation
32. To 30 June 2005 Bishop Piper's initiatives have used about $5,000 of the $50,000 allocated.
33. Bishop Piper signed over to Sarah Plummer the "Forty Days with the Risen Lord" material to reproduce that in a new format with her backers to provide for people in the diocese and around the world to promote prayer for evangelism and mission.
34. From 1 July 2005 to 30 June 2006 $10,000 was been allocated to employ Doug Philpott to assist in promoting the Prayer Warriors program, "Forty Days with the Risen Lord" and another venture "The Ephesus Code" during the Easter to Ascension Day period 2006, together with the Ascension Day Prayer Assemblies in 2006.
35. Bishop Piper has decided to attempt to produce a further personal prayer journal called "The Ephesus Code" for 2006. Youthworks is anxious to run with the project under the same arrangement as "Forty Days with the Risen Lord" but this project will need money to produce the CDs etc for promotional purposes.
36. Bishop Piper is in the process of forming a working committee with representatives from each of the regions and some of the diocesan organisations to promote the four major ventures (including Sarah Plumber's "Forty Days with the Risen Lord") and to work out the next major ventures in 2006-2008. It seems that having major events to work towards best promotes the desired culture of "word and prayer for the Kingdom".
37. It is intended that the ventures in 2006-2008 will assist the diocese to prepare for a continuous mission year of seeking conversions, recruiting full-time ministers of the word and prayer, and starting new fellowships in 2009.
Policy 1b - Gospel work outside the Diocese
38. The Policy 1b Committee comprises Dr Philip Selden (chairman), Deaconess Margaret Rodgers and Dr Karin Sowada.
39. Present expenditure as outlined in the Allocations and Appropriations Ordinance has been under discussion. The Policy Committee has recommended in principle that approximately 40% should be directed to work outside the diocese within Australia, and 60% to overseas projects.
40. At present the Diocese supports work in Armidale, North West Australia and Tasmania. The Policy Committee met with bishops of those dioceses in September/October 2004 to discuss needs and priorities. Unfortunately, there are more requests than funds available. Support is also given to the National Aboriginal Anglican Council, and the National Home Mission Fund.
41. Several bishops from overseas dioceses visited Sydney in 2004 and 2005, and opportunity was taken to discuss their needs. The Policy Committee considers that priority should be given to the training and encouragement of bishops and key leaders and the provision of bursaries to Moore Theological College to enable post-graduate degrees to be undertaken.
42. The Policy Committee continues to build the process, seeking to understand other dioceses. Bishop Tasker is working with the Archbishop's Overseas Ministry Fund and CMS to ensure that we complement each other.
43. Some funds remain available for overseas projects, following the agreement of Synod in 2003 that unallocated funds from Jubilee 2000 and scholarships for Africans students should be placed under this policy. The Archbishop is building closer relationships with overseas dioceses, and a clearer picture is now emerging as to the most effective use of these funds, particularly in training present and future leaders.
44. The Policy 2a Committee comprises Bishop Ivan Lee (chairman), the Rev Stephen Semenchuk and Mrs Claire Smith.
45. The recommendation of the Policy 2a Committee for allocations is set out in the Schedule but the following provides some brief explanatory notes -
Regional allocations
46. The demographic formula (devised by a previous subcommittee of Standing Committee) with updated statistical data was determined to be the most strategic method. Demographic categories consisted of: Total Pop.; Pop. growth; Pop. 0-24; Pop. 25-40; NESB pop.; No. of parishes; No. of attenders; No. of uni students; Households income less than $500; Total net income.
47. The formula is strictly applied in 2008, as a transitional process was required from present funding levels (2006) and a midway level (2007). The Policy Committee recommends the continued use of the demographic formula from 2009 onwards.
Archbishop's Curacies
48. A modest increase has been recommended to reflect expected increases in stipends.
Cathedral
49. An increase of $12,000 from $130,000 in 2005 to help the funding of new city workers and parish cost recoveries (new for the Cathedral).
Continued Strategic Projects
50. Funds to adequately support the north west sector (Rouse Hill and Kellyville) projects following their first year of 2a funding (2005).
New Strategic Projects
51. Funds to target a standout strategic area of great opportunity anywhere in the diocese, eg. the so-called 'south west sector'. The precise project/s to be determined after examining options from all regions, and brought to Synod 2006.
Policy 2b - Support Congregations
Introduction
52. The Policy 2b Committee comprises Bishop Peter Tasker (chairman), the Rev Bruce Hall and Mr Greg Nelson.
53. In 2004 the Policy 2b Committee met with each Ministry Partner individually so as to understand the goals and activity of each. Early 2005 the Policy Committee met twice with all the Ministry Partners where each presented the reason and level of grant being applied for.
General Guidelines
54. Ministry Partners were requested to look for new initiatives and to rigorously review present ministry.
55. Ministry Partners were encouraged to engage in discussion with each other so as to identify any areas of duplication.
56. The Policy Committee encouraged Ministry Partners who were planning to employ people for the same ministry function to discuss together whether they should combine these resources rather than work separately.
57. The Policy Committee took into account the level of finance a Ministry Partner was receiving directly and indirectly through Policy 2b in attempting to discern the percentage of total 2b finance going to any particular ministry area.
58. Ministry Partners were encouraged to actively pursue funding apart from Policy 2b so as to release resources for future strategic initiatives.
59. It is noted that the Strategic initiative last year undertaken by Youthworks to support John Dickson to have six months to write has resulted in the first book, A SpectatorÍs Guide to World Religions, being so successful that it won the 2005 Christian Book of the Year award and the $65,000 will be returned to Policy 2b over the next three years. The Policy Committee plans to discuss with Ministry Partners possible future Initiatives using this money.
Ministry Partners
Evangelism Ministries
60. The Director resigned in the second half of 2004. The Acting Director represented EM with the Policy Committee, noting that a new Director was to be appointed August 2005.
61. The Policy Committee plans to meet with the new Director as soon as practical.
62. Concerning funding allocations the Policy Committee determined, because of possible changes under the new Director, to allocate near the same level of funding for 2006 as for 2005. Maximum allocations have been made for 2007 and 2008, however, these will be discussed with the new Director before being finalized.
Anglican Media
63. Anglican Media Board expressed their commitment to The Web and Southern Cross believing that AM's primary focus is to provide appropriate and effective channels of communication for the Diocese for the purpose of motivating and uniting Sydney Anglicans around the Diocesan Mission. These two vehicles have been chosen to fulfill this function as they also allow AM to support the external communication needs of the Diocese.
64. The Board reported that if Synod determined that they were required to produce TV programs, a minimum cost is $25,000 per program. In order to fund this the Board would be asking Synod to determine whether the Web or Southern Cross should cease, or, the Synod supply additional funding.
65. AM hopes to be able to raise income from advertisements on the web.
66. AM believes that better access to the Web and savings in costs can be achieved if Diocesan Organisations worked closer together on Web development and maintenance costs and better compatibility between sites.
Youthworks
67. Closer liaison is being formed between Youthworks and the Regions to better focus the work of Youthworks Advisors.
68. There are new breakthroughs in High School Ministry.
69. Looking at further fundraising for Advisors.
70. Noted the move towards Youthworks Advisors running training and Regional Co-ordinators planning and arranging the sessions.
Anglicare
71. Research, Planning and N.C.L.S.
- $105,000 has been allocated for 2006.
- Anglicare has indicated that it will not be possible for it to continue to be responsible for this department after the end of 2006, unless new scope and funding arrangements are agreed.
- The MTF will now undertake a review of the Diocese's need for a research and planning function, and for NCLS data, including the funding sources.
- Funds are being held in Policy 2b for 2007 and 2008 until a decision is made.
72. Counselling
- The numbers of Parish workers using this service are increasing.
- Some support needed from Synod.
- Policy Committee believes it needs to do more work on determining what that level of support needs to be given.
73. Chaplains
- Noted that Anglicare made a request for funding.
- Anglicare has declared that it will seek to support this ministry from its resources at the present time as it cannot be financed from Policy 2b with its present commitments.
74. The Policy 3 Committee comprises Bishop Glenn Davies (chairman), Dr Bryan Cowling and the Rev Chris Moroney.
75. The Policy 3 Committee has continued to meet with its partners throughout 2005 discussing both strategies and funding for the expansion of personnel in ministry positions. Following the successful introduction of FEE-HELP at both Moore College and Youthworks College in 2005, pressure has been removed from the extent to which tuition bursaries are needed for ordination (and diocesan lay worker) candidates. While a more modest grant of money has been allocated to incoming ordination students, it was considered appropriate to provide some form of financial support for those students who entered the ordination stream prior to the introduction of FEE-HELP. Apart from the continued assistance to Moore College, it was also agreed to fund another staff member for Ministry Training & Development, given the increase of more than 40% of ministry candidates since 2003. Youthworks College has also received funding for another faculty house. Furthermore, in light of the need to train lay people, $80,000 has been allocated for the expansion of the Moore College External Studies courses through the appointment of a full time Director.
76. It was also agreed that recruitment for ministry was a vital element in achieving the initial goal of the mission in seven years. Accordingly $230,000 has been set aside for recruitment in 2006: $100,000 has been allocated to the continuation of the position of Director of Ministry, Recruitment and Training at Moore College; $70,000 has been set aside for a Year 13 (Gap Year) program for school leavers considering full time ministry; and $60,000 has been set aside to assist in the engagement of Apprenticeships in parishes with a view to recruiting more people for full time ministry.
77. Policy 3 recognises that more money should be spent on recruitment in the next triennium. However, it is not possible to reduce the current expenditure on other items to meet this need. While it has been suggested that the application of funds towards the library at Moore College could wait, it is the opinion of the Policy Committee that it would be shortsighted to reduce the funding of the library. Although $3.1 million has been allocated by the Synod to the library since 2002, the cost of providing a library suitable to the needs of a growing College and a growing Diocese is in the vicinity of $10 million. Initially therefore the Policy Committee recommended a special grant of $5 million towards the provision of the new library be allocated either from the Diocesan Endowment or be financed through the Endowment. Despite the fact that the College Council is currently considering its options for relocating the College, the need for a new library, by way of construction or purchase of an existing building, remains paramount. After further considering this proposal the Finance Committee of the Mission Taskforce has recommended that this project be considered as one of the first priorities to receive funding coming available from the New Capital Project and/or the College be encouraged to apply for loan funds to enable the work on the library to commence as soon as possible.
78. The recommended amounts for 2007 and 2008 remain provisional, and it is expected that final submissions (including the strategic development proposals) will be made to the Standing Committee in 2006 and 2007 respectively.
79. The Policy 4 Committee comprises Bishop ROBERT FORSYTH (chairman), Mr Michael Orpwood QC, Mr MARK PAYNE and Mr ROBERT WICKS.
80. To date the Policy 4 Committee has been able to identify issues and make recommendations for change to structures where that was considered to be helpful for the Mission using its own resources and those of the Secretariat. In the future there may, however, be a need to use external resources to assist this process and/or to reimburse costs incurred by the Secretariat, and this would of course necessitate a call upon the Synod funds allocated for this purpose.
Introduction
81. The Administration Policy Committee comprises Bishop ROBERT FORSYTH (chairman), Mr James Flavin and Mr Warwick Olson AM. Mr Olson was overseas for an extended period and has not participated in the Policy Committee's deliberations.
82. The Policy Committee's recommendations about grants for 2006, 2007 and 2008 from the funding allocated for Administration are set out in the Schedule to the Ordinance. Certain recommendations for funding in 2007 and 2008 are proposed to be subject to further review in 2006.
Programs considered
83. The Policy Committee considered the following programs for funding -
Property
Cathedral Staff Parking - St Andrew's House
Rent Subsidies in St Andrew's House
Heritage Buildings
Diocesan Administration
Servicing Synod, Standing Committee etc
Parish Services
Car Parking for Committee Members
Professional Standards Unit
Resourcing
Researcher and costs of Social Issues Executive
Membership Anglican Church
Provision for Sydney Representatives at General Synod
General Synod Statutory Assessment
Provincial Synod Assessment
Anglican Consultative Council
Council of Churches of East Asia
Defence Force Board
NSW Council of Churches
NSW Ecumenical Council
Contingencies
84. The following specific information about the programs was received -
- From the Diocesan Secretary - General Synod Statutory Assessment and the provision for Sydney Representatives at General Synod.
- From the Registrar - Provincial Synod Assessment and the support of Anglican and Ecumenical Organisations.
- From the General Manager, Secretarial - the servicing of Synod, Standing Committee etc and Parish Services.
- From the Director of the Professional Standards Unit - the Professional Standards Unit.
- From the Rev Andrew Cameron in respect of the Social Issues Executive.
85. Additional information about rent subsidies and heritage buildings has been provided by the Secretariat.
Principles on which programs were assessed
86. The principles by which the Policy Committee has assessed the programs for funding are as follows -
- Meeting obligations
Obligations arising from our membership of the national and provincial church and arising under the Constitutions of the Church in the Diocese (such as the need for an annual Synod meeting and Standing Committee) are to be a first call on available funds. - Supporting parish ministry
Programs which support parishes in their mission are to have the next call on available funds. - Other programs
Other programs are then prioritised, based on their impact and relevance to the mission generally.
Application of principles
87. The amount for which funding was sought for the abovementioned programs in 2006 was about $2.5 million. The amount designated as being available for distribution in 2006 is $1.761 million.
88. The Policy Committee has categorised the programs referred to in paragraph 3 in the following way based on the principles referred to in paragraph 6.
Meeting obligations
- General Synod Statutory Assessments
- Provincial Synod assessment
- Serving Synod, Standing Committee etc
- Cathedral staff parking - St Andrew's House
- Contingencies
Supporting parish ministry
- Professional Standards Unit (subject to the following comments)
- Parish Services (subject to the following comments)
Other programs
- Other programs
Specific Issues
Generally
89. The Policy Committee's views on the programs for which funding was sought follow.
Meeting obligations
General Synod and Provincial Synod assessments
90. The Policy Committee considers that General Synod statutory assessments and Provincial Synod assessments are to be paid in full since they are obligations arising from our membership of the national and provincial church. The grants recommended for this purpose are in line with projections.
Servicing Synod and Standing Committee
91. The Policy Committee believes that adequate funding needs to be provided to appropriately service the Synod and the Standing Committee. In 2003 and 2004 the funding for this purpose was $813,000 and $820,000 respectively. In 2005 the amount was reduced to $755,000. However, comment has been made that the cut such funding was too severe.
92. The Policy Committee has been provided with information from the Secretariat as to the cost of servicing the Synod and the Standing Committee. From a review of that information the Policy Committee notes -
- The costs of Standing Committee and ordinances are generally the costs of facilitating the general day to day business of the governance of the Diocese.
- Synod is enormously expensive. The staff costs (with overheads and the like) are just over half the total cost of Synod. The other costs are out of pocket expenses incurred in facilitating the session of Synod, and related matters.
- The Finance Committee and the Mission Taskforce are major committees of the Standing Committee whose activities are of such size as justify separate classification.
93. The Policy Committee believes there is justification in funding this program in full and the recommendation for 2006 reflects this. However, the recommended grants for 2007 and 2008 are increased at only 1.5% per annum (being half of the inflation rate) of the previous year. This is to encourage the Standing Committee and the Secretariat to determine where savings might be made. For example, is Synod too expensive?
Cathedral Car Parking
94. The Policy Committee thinks there is a moral obligation to provide adequate funding for Cathedral staff parking in St Andrew's House arising from commitments believed to have been made in connection with the incorporation of Cathedral land into the land on which St Andrew's House was constructed. An alternative to providing a separate grant for these purposes would be to advise the Cathedral that this cost was to be incorporated in other grants made to the Cathedral.
Contingencies
95. An appropriate amount needs to be provided for contingencies and the Policy Committee considers the amounts recommended are appropriate.
Supporting parish ministry
PSU
96. A grant of about $480,000 has been sought for the Professional Standards Unit ('PSU') in 2006. The budget has been examined, and there seems to be little scope to reduce the expenditure, even if the administration of the PSU was more closely aligned with the Secretariat. The PSU's reserves have been substantially reduced in recent years because of reduced funding.
97. The Policy Committee believes the PSU program consists of several elements (which are closely related and at times may be indistinguishable) involving work for the Synod, Archbishop and parishes. The PSU is involved in investigating complaints against clergy and taking appropriate action, advising and informing parishes about screening and other local responsibilities under Child Protection legislation, and educating about Faithfulness in Service. The Policy Committee initially recommended funding for the PSU should be provided on the basis of one-third from parishes through the cost recoveries system, one-third from the EOS and one-third from the appropriations ordinance. However the form of the Parochial Cost Recoveries Ordinance recommended by the Standing Committee recognises that no contribution will be received from the EOS, and accordingly incorporates a recovery of two-thirds of the total cost from parishes through the cost recoveries system. Based on the grant application made by the PSU, this leaves funding of one-third (about $160,000) to come from the Synod Appropriations and Allocations Ordinance for 2006.
98. If the PSU is not to be funded in the manner set out in paragraph 97 the amount designated as being available for distribution for "Administration" is insufficient to enable the PSU to be fully funded in accordance with the grant request, having regard to the Policy Committee's recommendations about funding for other programs.
Parish Services
99. The Policy Committee supports in principle the concept of funding a program to train and assist parishes in external compliance issues. A paper about these issues generally has been received by the Mission Taskforce.
100. The area of highest priority is compliance with occupational health and safety issues. The Secretariat has been discussing with the archdeacons the need for the development of a training program. Each of the archdeacons agrees that an appropriate training program is needed.
101. In addition to the occupational health and safety training program, there is a need to develop an induction program for churchwardens and parish councillors, and the need for resources to be produced and made available about insurance and risk management generally.
102. The Policy Committee recommends a grant of $150,000 in 2006 to enable the programs referred to in paragraphs 99 and 100 to be implemented. The Policy Committee also foreshadows grants for 2007 and 2008 for other external compliance programs (particularly taxation and financial management) but suggests that provision of those grants be measured against, and be conditional upon, the meeting of the 2006 performance standards. Accordingly, it is suggested that grants for those years be reviewed in 2006 in light of performance against the proposed goals for 2006.
Other programs
Rent subsidies
103. The rent subsidies scheme operates to partly compensate certain diocesan organisations occupying space in St Andrew's House for the need to pay a market equivalent rent. In 2003, 2004 and 2005, the costs of the rent subsidies scheme were or will be about $150,000 per year. Funding of $155,000 per year was provided in 2003 and 2004, but only $82,000 in 2005 since it was intended that reserves would be used to meet costs that year.
104. From time to time, committees of the Standing Committee have reviewed the rent subsidies scheme (the last review having been in 2001). On each occasion, the scheme seems to have survived in some form. The Policy Committee does not intend undertaking its own review of the merits of the scheme - that is considered to be beyond its terms of reference.
105. However, the Policy Committee believes that the rent subsidy should be about $100,000 for 2006 and only Youthworks, the Department of Evangelism, General Synod, GFS and Mother's Union should receive the subsidy. It should then be reduced further (but not necessarily phased out) in 2007 and 2008.
Heritage buildings
106. The Policy Committee was asked by the Mission Taskforce Finance Committee to review the need for the funding for heritage buildings. This fund is a small fund into which small amounts have been allocated in future years (2003: $23,000, 2004: $2,000, 2005: Nil). Claims on the fund are infrequent and the capital is largely exhausted. The Policy Committee does not propose recommending any funding for 2006, 2007 or 2008.
Social Issues Executive
107. The Policy Committee received an application for a grant for the Social Issues Executive ('SIE'). The main expense is the cost of the Social Issues Researcher.
108. The SIE was substantially changed and restructured with effect from the beginning of 2004. Since that time the SIE has completed a number of its objectives and identified a number of other areas in which it either is currently working or plans to undertake work. The Policy Committee considers the work of the SIE to be of value to the Archbishop, the Standing Committee and our parishes and recommends that the grant request of $69,000 be approved for 2006. However, the provision of subsequent grants for 2007 and 2008 should be measured against, and be conditional upon, the meeting of certain performance standards. Accordingly, it is suggested that grants for those years be reviewed in 2006 in light of performance against the proposed goals for 2006.
Grants for bodies
109. In recent years, the Synod has provided grants for membership of the following bodies -
- Anglican Consultative Council
- The Council of Churches of East Asia
- The Defence Force Board
- The New South Wales Councils of Churches
- The New South Wales Ecumenical Council
110. The Policy Committee recommends that the grants for the Anglican Consultative Council, the Defence Force Board and the New South Wales Council of Churches be approved.
111. The Policy Committee does not think that a grant for the Council of Churches of East Asia should be continued since it is unclear the link between that body and our Diocese or our membership of the Anglican Church of Australia.
112. The Policy Committee has been specifically asked to review our membership of the New South Wales Ecumenical Council ('NSWEC'). In the time available, extensive research has not been possible, but the following comments can be made -
- Our membership of the Council is derived through the General Synod's membership of the National Council of Churches.
- The Council consists of members in various categories, including representatives of member churches. The members from the Anglican Church in New South Wales are-
- the Metropolitan as the State head, and
- 2 representatives appointed by the Metropolitan, and
- additional representatives being 2 for each 50 ministers in full time appointments, plus an equal number of alternatives.
- In practice, the 7 Anglican dioceses in New South Wales each appoint their own token number of 'additional' representatives. It is believed Sydney is entitled to appoint about 16 representatives with 16 alternates, although we have not had anywhere near that number of representatives for many years.
- Under the Constitution of the NSWEC member churches will, as far as they are able, make the annual budgeted financial contributions to support the Council. In practice, the Anglican Church's contribution is divided between the 7 dioceses.
- To 'withdraw' we would cease to pay our contribution and appoint representatives. But this would not change the position of the Anglican ChurchÍs membership or the position of the Archbishop as Metropolitan.
113. Our membership of the NSWEC is debated periodically. In 1993, the Standing Committee determined to recommend to the Synod that we withdraw from the NSWEC. The reasons for this recommendation were -
- the perception that the activities of the NSWEC were not a productive use of time, making it hard to find people to represent the Sydney view, and
- a perceived lack of financial accountability by the NSWEC, and
- a perceived duplication of its activities with the New South Wales Council of Churches, and
- the perception that activities of the NSWEC did not sufficiently touch the ministry of our churches to warrant continued membership of the body.
114. The Standing Committee's recommendation was controversial. In response, in 1994, the Synod appointed a committee to consider in detail our membership of the New South Wales Council of Churches and the NSWEC and recommendations about whether we should continue to contribute. The Synod committee subsequently concluded that the councils were very different in their historical origins and development, in their membership, ethos and agenda. It recommended that we continue to belong to and take an active role in both councils. It appears the recommendation was accepted. Since then the Diocese remained a contributor to the NSWEC.
115. The Administration Policy Committee considers that little has probably changed since the mid 1990s about the merits of us remaining a contributor to the NSWEC. Our energy and commitment to that body is probably unchanged. However, the Policy Committee considers that our membership has significant symbolic value and that moves to withdraw would give rise to debate and comment in our Synod and the wider ecumenical community.
116. The Policy Committee recommends a pragmatic approach, because it believes that such debate and comment would involve time and energy on the part of Diocesan leadership best spent elsewhere. From a financial viewpoint, there is little compelling argument in withdrawing at this stage: the grant request is only $8,000 per year.
Attendance at General Synod
117. Grants toward the costs of Sydney representatives attending General Synod are recommended in the manner set out in the Schedule to the Ordinance.
Indication of intent for 2007 and 2008
118. For 2006 each of the line items of income to be appropriated and expenditure to be allocated shown in Attachment A in the column headed 'actual for 2006' will be so appropriated and allocated as result of the passing of the Ordinance.
119. For 2007 and 2008 the corresponding columns of the Attachment A are headed 'intent for 2007' and 'intentfor 2008' and by passing the Ordinance in this form the Synod is clearly expressing its intent in relation to each of these line items. However, for 2007 only the income from the Diocesan Endowment is known for certain at the time of passing this Ordinance, with the other figures remaining estimates. For 2008 all the income figures shown are estimates. Accordingly for 2007 and 2008 it may be necessary to either appropriate an amount equal to any deficiency from the provision for distribution held by the Glebe Administration Board, or from some other reserve, or to reduce the allocations intended to match the available income while maintaining the percentage allocation shown to each policy area.
120. Similarly, for 2007 and 2008 if one of the Policy Committees considers it appropriate to vary the details of the allocation to some specific line items as a result of further information becoming available after the passing of this Ordinance, or to allocate some of the funds presently held for strategic mission projects, it may bring a recommendation for a change in the allocation within its policy area to the Mission Taskforce and Standing Committee. Standing Committee is authorised to approve such variations, by ordinance, provided the percentage allocation to each policy area is not affected, and provided the change is reported to the next session of the Synod.
121. The Mission Taskforce and Standing Committee recommend that the Synod in 2005 -
- Approve the income to be appropriated and the specific allocations to be made in 2006, as detailed in Attachment A.
- Accept the indications of the intent to appropriate income and the proposed allocations to be made in 2007 and 2008, as detailed in Attachment A.
- Authorise the Standing Committee to pass an ordinance in 2006 for 2007 and again in 2007 for 2008 for the actual income to be appropriated and the specific allocations to be made in those years.
- Asks the Standing Committee to bring a report to Synod in 2006 in relation to actual appropriations and allocations to be made in 2007, and a further report in 2007 in relation to 2008, highlighting any variation the Standing Committee has approved by ordinance to the amounts now shown as the indication of intent for the appropriations and allocations for 2007 and 2008, as detailed in Attachment A.
BISHOP PETER TASKER
For and on behalf of the Mission Taskforce
7 September 2005
Click here for Attachment A