Day 2
Report of the Representative Church Body Highlights Church Finances
The report of the Representative Church Body was presented to General Synod in Limerick this afternoon (Friday May 5). The report reveals that the total funds available to the Representative Church Body in 2016 increased by 1.3 per cent to €188.6 million. New initiatives have included the extended remit of the Church Fabric and Development Fund. Allocations for 2016 totalled €3.65 million.
The RCB report also included its annual environmental, social and governance policy review, which highlights certain restrictions on investments and its policy on climate change.
The report was presented by Henry Saville, chair of the executive committee. He explained that the RB is the trustee body for the Church of Ireland and was established in 1817. Its main activities include administration of trusts, investment management, treasury management, payment of clergy stipends, administration of clergy pensions, allocation of funds and resources supporting the work of the Church, support for property transactions, legal support and library.
Mr Saville said that in the period since the crash of 2008 there had been a recovery in the total value of General Funds to the current figure of €188.6 million. But he said there were some underlying issues of concern. In 2012 the decision was taken to move to what is known as the Total Return basis of investment management which allows capital gains on investments to be accumulated with income from investments (dividends, interest etc) and the whole treated as income which may be used for charitable purposes, he explained. He added that the change in approach meant greater flexibility was possible in the types of investment that could be made so that investments generating capital profits as well as investments generating traditional income flows were equally valid vehicles and the greater range of options available were intended to support higher sustainable income levels. He said that a higher than projected withdrawal rate (of 4.5 percent) had been masked by the high rates of return received on investments.
“It is clearly a critical point of focus for the Executive Committee of the RB to ensure that the services required by the wider Church continue to be delivered going forward; this will only be possible with a continuing focus on efficient delivery of services, reorganising and reengineering where necessary and possible, and with a prudent management of costs,” he stated.
Expenditure, he said, fell into two categories: either service delivery costs or funds allocated to support the work of the Church. Service delivery costs comprise 48 percent of outgoings and allocations total 52 percent under the three main headings of episcopacy and chaplaincy, training of ordinands and general synod.
On the subject of investments he said the RB operates an ‘environmental, social and governance policy’ in making investment decisions. This year the house investment team and the investment committee formalized a revised policy on climate change, he added. He said that the investment committee was happy to support a motion being brought forward by Stephen Trew which will further develop the approach to dealing with climate change issues within investment activities.
Mr Saville said both unit trusts continued to perform well and their good results needed to be viewed in the context of a prudent approach to investment. This, he suggested, made a compelling case for the investment of funds in the unit trusts. He added that investments can be realized and repaid on demand.
Regarding the Clergy Pension Fund he said no changes were proposed in contribution levels and there were no recommended discretionary increases.
Under the heading of Property and Trusts, Mr Saville paid tribute to the team dealing with property matters in Church House. He said an issue that arose occasionally was a lack of adherence to approved procedures for property transactions.
The most significant development in the area of Trusts was the establishment of the Church of Ireland College of Education Fund Trust with the RCB as appointed trustee, he stated. The share portfolio and the campus of the former Church of Ireland College of Education were transferred into this Trust during the year and the Trust has committed to providing an annual subvention towards certain costs of the new Church of Ireland Centre in the DCU Institute of Education.
He said that regulations governing the administration of the Church Fabric and Development Fund were approved by Standing Committee in January meaning that the fund was now also available for development applications, both centrally and locally, to facilitate strategic growth of the Church of Ireland by focusing on mission initiatives.
Mr Saville referred to the new Parish Resources section of the Church of Ireland website. This include advisory sections as well as pro forma documentation which can be downloaded from the website. He said these would be of huge benefit to those in parishes and dioceses involved in administration and development of church activities. He thanked Allchurches Trust for their support in this project.
Looking back on the first year in office of the new Chief Officer, David Ritchie, he said that Mr Ritchie had brought a fresh perspective and had focused on the area of organizational and staff development. Mr Saville said time had been invested in the Mission and Values initiative involving staff at all levels and the manager development programme. He said the management and staff have engaged positively in these development.
In seconding the Report of the RB, the Bishop of Limerick, focused on the way in which clergy and lay leadership are enabled and educated. Bishop Kearon said that theological education including the formation of clergy and equipping lay people is always expensive, but most churches find it worthwhile. He said there were many ways of delivering education but none could replace the need for a dedicated institution and teaching staff. He commended the current principal of the Church of Ireland Theological Institute, Canon Dr Maurice Elliott and his staff.
He also commented on the Parish Resources section of the Church of Ireland website and said it was a welcome support for all. “It is well designed and accessible, and certainly addresses very many of the needs and requirements of our hard–pressed parish and diocesan volunteers. We’re now used to this level of service on–line when we deal with government, health and welfare agencies, and it is good to see that same level of on–line service being available within our church administration,” he said.
Discussion on the Report of the RB covered the following points:
- Lay people were urged to share the Good News and get new people to come into our churches.
- The work of the RCB Library and Archive was highlighted in particular the digitization of draws of churches, cathedrals, glebes and other buildings and the increase of interest in parish records.
- The popularity of digitized material on the web was highlighted.
- The statement of financial activities was addressed and a ‘bottom line’ for the financial year was requested.
The report of the RCB was accepted by General Synod.
An associated motion on allocations, totaling €3,749,491, proposed by Canon Graham Richards and seconded by the Bishop of Limericks was also passed by Synod.