diocesan administrator - diocese of edinburgh · 10/25/2018 · bishop john introduced...

DIOCESAN OFFICE • 21A GROSVENOR CRESCENT • EDINBURGH • EH12 5EL

A meeting of the Edinburgh Diocesan Synod will be held on Thursday 25 October 2018. The Synod Eucharist and Meeting will take place in St Paul's &

St George's Church, Edinburgh, starting with Eucharist at 5.30pm

SIMON FILSELL

Diocesan Administrator

York PlaceEdinburghEH1 3RH

EDINBURGH DIOCESAN SYNOD Thursday 25 October 2018

AGENDA & TIMETABLE St Paul’s & St George’s Church, Edinburgh

5.30pm

6.00pm

6.45pm

6.50pm

Synod Eucharist

Refreshments available

Welcome and Apologies

Bishop's Opening Remarks

7.00pm ADMINISTRATION

• Synod Minutes – to confirm the minutes of the meeting held on 17March 2018

FINANCE & MANAGEMENT (Godfrey Robson, Diocesan Secretary & Convenor, Diocesan Finance & Management Committee)

• Diocesan Accounts for 2017: Paper attached, p12Motion: This Synod notes the Diocesan Accounts for 2017

• Diocesan Financial Position 2018

7.30pm MISSION & MINISTRY (Revd Ruth Green, Convenor, Diocesan Mission & Ministry Committee)

• Introducing the new staffo Nathalie Mares – Administrative Assistant & PA to The Deano James Parsons – Communications Coordinator

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• Lay Vacancies on the Mission & Ministry Committee

• Growing Together• Enabling Ministry and Developing Disciples• Serving our communities and Sharing Faith• Engaging All Ages

• Future of the Role of Bishop's Enabler of Mission (separate paper)

• Diocesan Budget for 2019: (separate paper)Motion: This Synod approves the Diocesan Budget for 2019

8.45pm Any Other Business – any items must be notified to the Diocesan Administrator before the start of Synod proceedings

The Bishop confirms the Acts of Synod

Date of next Synod:

Saturday 9 March 2019 at 8.30am ● (St Paul’s & St George’s, Edinburgh)

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Minutes of the Edinburgh Diocesan Synod held on 17 March 2018 at St Paul’s & St George’s Church, Edinburgh

Synod commenced with Eucharist at 8.30am

Synod held a moment of silence to remember those who had died since the last Synod:

Sandy Burwell

Nigel Cook

Professor Duncan Forrester

Revd John Grover

Revd Donald Guthrie

Revd Mary Pat Lennard

Mary Mackintosh

OPENING BUSINESS

HONORARY CANON

Bishop John reminded Synod that the Very Rev Graham Forbes had retired as Provost of St Mary’s Cathedral in June 2017 after over 30 years of service. He proposed, on behalf of the Cathedral Chapter, that he should be made an Honorary Canon. Synod UNANIMOUSLY AGREED to his appointment.

BISHOP OF ESPOO

Bishop John reported to Synod that Bishop Tapio Luoma had recently been elected as Archbishop of Finland. He asked if Synod wished him to send its congratulations to Bishop Tapio, and this was UNANIMOUSLY AGREED.

BISHOP OF ABERDEEN

Bishop John reminded Synod that the Rev Canon Anne Dyer, until recently the Rector of Haddington, had been consecrated as Bishop of Aberdeen on 1st March. He asked Synod if it wished him to send greetings to Bishop Anne, and Synod UNANIMOUSLY AGREED.

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DUNBAR ECUMENICAL PARTNERSHIP

Bishop John reminded that St Anne’s Episcopal Church has entered into a partnership with the Methodist Church in Dunbar some two years previously. The formalisation of this partnership had now been approved by the General Synod, and this was the formal report to Diocesan Synod that this had happened.

BISHOP’S ADDRESS

Bishop John spoke of the gift of Lent as a time to spend on things we often passed by. Synod began with Eucharist, which reminded us that God can be found in the routine matters of finance and governance as well.

[The full text of the Bishop’s address can be found on the Diocesan website]

APOLOGIES AND WELCOMES

The Very Revd Frances Burberry welcomed the following newcomers to Synod:

Marnet Hargreave, Alternate Lay Representative, St John’s Selkirk

Gillian Stewart, Lay Representative, St Mary’s Cathedral

Isobel Watson, Lay Representative, St John’s Princes Street, Edinburgh

Vivien Bremner, Alternate Lay Representative, St Cuthbert’s Colinton, Edinburgh

Lizzie Smith, Lay Representative, St Michael and all Angels, Edinburgh

David Ogilvie, Lay representative, St John’s Jedburgh

Mike Betts, Lay Representative, St Peters Peebles

The Rev Richard Tiplady, Director of Mixed Mode Training, Scottish Episcopal Institute

The Rev Margaret Pedersen, Curate, Holy Trinity, Melrose

Wendy Pemble, Alternate Lay Representative, Christ Church, Falkirk

Ollie Clegg, Ordinand, St Mungo’s Balerno

The Rev Christine Downey, Rector, St Mary’s Dalmahoy

Judith Stevenson, Lay Representative, St James’s Leith, Edinburgh

There were 125 Attendees (67 Clergy - 66%; 58 Lay - 89%) with apologies from 8 Clergy and 2 Lay Members

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BISHOP’S LENT APPEAL

Bishop John introduced representatives of the two nominated charities, who spoke about the work that would be supported by the 2018 Appeal:

Karen Reed from EMMS International. She outlined the aims of the organisation, to create a just world, ensuring that all had access to basic health care. She then presented a short film about its work in Malawi. Nurses provided a support system and funding would help to train more nurses. It was moving to work in palliative care, and was the only charity in Malawi to do so.

Catherine Dawson, a Trustee of the Edinburgh Rape Crisis Centre. She spoke to Synod about the impact of sexual violence. The Crisis Centre provided advocacy and information to survivors of such violence. It was increasingly understood that these were traumatising and life-changing experiences, which had long-term impact on the victims. The charity was also now supporting proactive prevention projects in schools.

ADMINISTRATION

SYNOD MINUTES

Synod confirmed the minutes of the meeting held on 26 October 2017 at St Michael’s Parish Church, Linlithgow, with one amendment:

The Rev Jacqui Du Rocher was also curate of St Leonard’s Lasswade

STANDING COMMITTEE ANNUAL REPORT

Godfrey Robson, Diocesan Secretary, presented the report. The Rev Canon Malcolm Round and the Rev Canon Ian Paton had ended their terms of office on the committee, and they were thanked wholeheartedly for their invaluable contributions. Victoria Stock and Neil Stewart had joined the committee during the year. The consequences of the death of Nigel Cook, the Diocesan Treasurer, in November 2017 had been significant. The support of the members of the Standing Committee in keeping the work afloat had been much valued. In reflecting on the year, Godfrey Robson observed the healthy number of projects and initiatives that were underway in the diocese, which was very encouraging.

The motion that Synod approved the report of the Standing Committee was proposed by Godfrey Robson and seconded by The Hon. Barnaby Miln. This was carried unanimously.

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FINANCE AND MANAGEMENT COMMITTEE ANNUAL REPORT

Ian Lawson paid tribute to the late Nigel Cook, who had been Diocesan Treasurer until his untimely death in November 2017. It had been a huge support to have had Nigel as Diocesan Treasurer, albeit only for a short while after he had started as the new Convenor of the Finance & Management Committee. He was very grateful that Simon Filsell, the Diocesan Administrator, had stepped in to cover as much as possible. The annual audit was almost complete. A deficit of £22k had been budgeted for 2017, but the outcome in the General Fund, setting aside restricted funds, was a £12k deficit. The accounts would be signed off at the May Standing Committee meeting and presented to Synod in the autumn. The income from the Unit Trust Pool had increased over the budgeted amount, and some expenditure had either been delayed or had not happened, for a variety of reasons. The St Hilda’s Fund and the St Andrew’s Fund had jointly seen a surplus of £18.5k, which was effectively grant money not applied for. This would be carried forward into the 2018 budget. Ian Lawson made a plea for the timely submission of annual charge accounts and financial schedules from vestries. At the time of the meeting 10 of the 55 charges had still not submitted them. He then thanked the members and conveners of the pendant committees for their work during the year. Consideration was being given to a replacement Diocesan Treasurer, and this would be moved forward as a matter of priority once the annual accounts have been finalised.

The motion that Synod approved the report of the Finance & Management Committee was proposed by Ian Lawson and seconded by the Rev Canon Dean Fostekew. This was carried unanimously.

PRESENTATION OF CATHEDRAL ACCOUNTS

The Very Rev John Conway presented the accounts. He noted that the Cathedral should be accountable to Synod, and that it should be a place for the whole diocese. In that context, he looked forward to welcoming the whole diocese on The Big Day on 28 April. During the year 2016-2017 the running costs of the Cathedral were £745k. This included expenditure of £100k on the various properties. Overall, there was a £43k deficit in running costs. This was not sustainable, and fundraising would be needed. This was, however, already being addressed.

SAFEGUARDING

Simon Filsell, the Diocesan Protection Officer, reminded Synod that the subject was not only about formal procedures, but had the underlying question of “are our churches safe places for anyone to be welcomed into?” There had been an exceedingly large number of headlines in the national and church press in recent months, which served as a reminder of the adverse impact on church bodies. Where there were missing Annual Returns and lack of reporting at vestry meetings and AGMs, an assumption had to be made that Safeguarding was not a priority. Although, during 2017, no cases had been dealt with, there were two cases being dealt with already within the diocese, in 2018. It was noted that the PVG Coordinators in congregations were indeed only coordinators, and that everyone had a responsibility for looking after their neighbour, and making their church a safe place to be welcomed into. As a formal matter, he reminded Synod that the appointment of

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Coordinators by vestries required the approval of the Bishop, before such appointments could be implemented.

ELECTIONS

Godfrey Robson presented the list of current General Synod members, and reported that the following had been proposed for the current vacancies:

• The Revd Diana Hall - Mid & East Area Council • The Revd Canon Dean Fostekew - Diocesan Synod • The Revd Ruth Green - Edinburgh Forth Area • There were no nominations for the clergy vacancy from the Borders Area Council • Ms Catherine Outram - Edinburgh East Area Council • Mrs Wendy Pemble - West Forth Area Council

The vacancies on the particular diocesan committees were noted.

The members listed above were, therefore, duly elected to General Synod.

MISSION AND MINISTRY

The Rev Ruth Green presented the annual report. She related that she had not been fully aware of the huge breadth of work that had been undertaken during the convenorship of The Very Rev John Conway. The committee’s work covered a wide variety of areas, including Continuing Ministerial Development, Initial Ministerial Education, Sector Ministry, Lay Readers, Spirituality, International, Youth & Children and the St Hilda’s Fund, to name just a few. The four Growing Together Roadshows had helped to form the vision of the diocese and how it could serve our communities and share our faith.

CENTRE OF MISSION

Bishop John then spoke about the proposed link between the charges of Galashiels, Hawick, and Selkirk. Discussions had been underway for some time about a way forward for all three charges, whilst aiming to preserve the individuality of each one. Just recently, agreement had been reached for a new Centre of Mission, and an advertisement was about to be published for a full-time post to cover all three charges. This post would be a Church Army post, and would be supported and partly-funded by the Church Army. The Rev Annie Naish (Bishop’s Enabler of Mission) commented that it had been quite a journey, but this was a very significant initiative, and it was heartening that the Church Army was putting funding into it. There had been a Church Army presence in Newcastleton, but there was no Episcopal Church there, so the relocation to Galashiels, Hawick and Selkirk has been a logical step. A Priest In Charge would be appointed, as well as a Pioneer Evangelist. It was a five-year project, which would have a process of support and review.

Karen Ellis, a member of the shared leadership team at St Peters Galashiels, was then introduced. She reflected that it had been an interesting journey with some false starts, but she was delighted that the Centre of Mission was now proceeding. Some were nervous about the change, but all three vestries were behind the initiative, and wanted it to work.

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Listening to the experiences of the Centre of Mission established by the Church Army in Dundee had been very helpful in planning. It was recognised that it was not only about bringing people into church but, as in Dundee, about meeting and engaging with people where they were. She asked for prayers of support that the right person could be appointed.

MIXED MODE TRAINING

The Rev Richard Tiplady (Director of Mixed Mode Training, SEI) reported on his recent appointment, having oversight of this training. It was a new program towards ordination, and started early with candidates. There would be a change of emphasis away from training, which featured a few placements, to fixed placements, around which the training would be delivered. Housing would be included, and the Province would provide 50% of the funding. The placements would have an emphasis on mission, and he was currently looking for charges to express an interest in taking a placed candidate.

ST HILDA’S FUND

The Rev Annie Naish reported that the oversight of this Fund was part of her role as Bishop’s Enabler of Mission. The Fund covered a small grants scheme, curate funding and wider diocesan strategic mission. It was recognised that the application process for grants had been a complex one in the past, but there was an aim to simplify this, and initial dialogue was always encouraged.

The Rev David Dixon (St Barnabas, Edinburgh) reported on their partnership with the Bethany Christian Trust, which funded a 2 days per week worker in Moredun. There was a school helper in a local primary school, helping children from vulnerable backgrounds, alongside a Christian teacher. They were also developing a gardening project, which would also involve the parents. In the longer term, they were looking to establish a drop-in centre.

CURATES

Bishop John reported on the welcome problem, that more people were being called to serve and be ordained, and that the number of current charges able to take curates was insufficient.

Charges were therefore being sought, and it was emphasised that funding should not preclude any exploratory discussions.

The Rev Canon Malcolm Round (St Mungo’s, Balerno) asked for a clarification of the definition of ‘lead’ and ‘pioneer’ evangelists.

The Rev Annie Naish responded to say that the advert stated the requirement for having an experience of “strategic planning for mission and enabling church growth“. It was clear that it was not only a position which would train others in mission and evangelism, but would also engaged in those areas directly.

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THE BIG DAY

The Rev Annie Naish expressed her hope that all had heard about the event on 28th April in St Mary’s Cathedral. The day was about celebrating something together, as a diocese, with a rich variety of congregations coming together in one place. She was hoping that there would be the sharing of ideas, resources and experiences. It would be an all-age event, so no one should feel excluded. It would conclude with an act of worship.

ENGAGING ALL GENERATIONS

Claire Benton-Evans (Diocesan Youth & Children Officer), presented her report on 2017. This reflected on the previous year, but she was now looking forward to the next 12 months. 2018 had been designated by Scottish Government as the “Year of Young People” but she identified that it should be a priority in any year. However, it was an opportunity to showcase this area of work, and to encourage the involvement and participation of young people in our churches, and see how to make them full members and participants. We needed to think about how we could give young people the platform in our work and worship. Olivia Smith (who spoke at the October 2017 Synod) and the Primus had met with the First Minister at Parliament, to discuss issues with young people, such as child poverty. She encouraged charges to provide photos and videos of activities which showed the involvement of young people in congregations. She was looking to collect their words, thoughts and aspirations, and to publish them alongside the images and videos on the diocesan website for everyone to see. She had just returned from attending a Church of England conference and, as the sole representative of the Scottish Episcopal Church, she was proud to talk about the work of the Glenalmond Youth Camp. At the 2017 Camp, there were 27 acts of worship, with an average attendance of 30. This clearly demonstrated the desire that already existed amongst young people to be active participants in church life and worship.

Maureen O’Neill (Director of Faith In Older People) reminded Synod that the organisation had started within the Scottish Episcopal Church, having been established by Malcolm Goldsmith to ensure that support was available for all older people, to remain active in their faith and their Christianity, no matter what their individual circumstances. Training was provided alongside other organisations and faiths. There was a programme of events, often involving international speakers. There was also an aim to make communities dementia-friendly, so that attendance at church was still possible. They were seeking to work with young people in our congregations to help them to understand the issues and challenges facing older people, including dementia. Although Faith In Older People was a separate charity, having an office within the diocesan office was important, as well as being a member of the office family. This established them, also, as part of the diocese and the province.

DEVELOPING DISCIPLES

The Rev Libby Talbot reflected that discipleship might not be a commonly-used term, but was fundamental to our being Christians. Discipleship was not individualistic, and the first disciples learned, experienced, and made their mistakes together, as a group. We were called to be Christian disciples in every aspect of our lives. We needed to look at how we could inspire and encourage this discipleship and to equip our clergy in supporting people in their journeys.

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Questions to be discussed around tables at Synod were:

• What has helped you to grow in your faith? • How is your church helping people to become committed, whole-life followers of

Jesus? • What outside help do you think your church would value, to assist you in ‘developing

disciples’.

Synod business was then paused to allow the discussions.

FUNDING DEVELOPMENT PROJECTS

The Rev Christine Barclay (Rector, St Peter’s Linlithgow and St Columba’s Bathgate) reported on the building development at St Peter’s Church. Having commenced on 24 September 2017, the building work was now in the final weeks. It had been an amazing and very physical exercise, and was the conclusion of three long years of planning. St Peter’s had a long-standing history of welcome, and the project consolidated and built new relationships. The initial plan was only to replace a toilet, but discussions led to a far more comprehensive scheme. Grant Bulloch, the architect - and a member of the congregation of St Pauls & St Georges in Edinburgh - had been a constant help and support well beyond his remit. It had been a huge leap of faith to move from a £70k project to one costing almost £¼m. Funding began to come in from a wide variety of sources, from bodies that recognised the spirit of initiative. An immense amount of work had been put in by Dr Lesley Stanley, a relatively new member of St Peter’s congregation. All the work was based on a passion for St Peter’s Church and its community. The prayer that had surrounded the congregation and the project had been overwhelming. On 30 May, Bishop John would lead an Act of Celebration, 90 years on from the completion of the original building of the church.

The Motion that Synod approved the report of the Mission & Ministry Committee and its pendant committees was proposed by the Rev Ruth Green and seconded by the Rev Tembu Rongong. This was carried unanimously.

The Dean handed the chair back to Bishop John.

DEAN’S REPORT

The Very Rev Frances Burberry introduced her report with a slide showing her bar of chocolate, to ‘give a flavour’ of her years’ work. In March, she had attended a Parliamentary discussion about the displacement of refugees. In April, she visited St Barnabas’ Moredun and learned of the work in partnership with the Bethany Christian Trust. In May, there was a visitation to St Columba’s by the Castle. This was one of 14 visitations in 2017. In June, she visited Nathan Cody’s exhibition at the Modern Art Gallery, of models of 286 places of worship, featuring in the Edinburgh Yellow Pages. In July, she participated in the Growing Together Roadshow in Holy Trinity Haddington.

August featured the institutions of two new rectors, the Rev Sarah Shaw at Christ Church Falkirk and then the Rev Andrew Cooper at St John’s Jedburgh. In October. There was a gathering at the University Chaplaincy, about those for whom education was out of reach,

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and proposed the concept of scholarships for refugees. In November, she attended a ‘Women In Leadership’ conference in Rome, which reflected on the growing inclusiveness of churches. In December, she attended the Chanukiah Lighting at the Scottish Parliament. In January 2018, she undertook a visitation at St Mary’s Dalmahoy. February had seen the meeting of the Diocesan Mission & Ministry Committee, the Standing Committee, a visit to Eyemouth, and a Scotland rugby victory over England in the Calcutta Cup. In March, she had been disappointed at not being able to attend the consecration of The Right Rev Anne Dyer in Aberdeen, due to the heavy snowfalls. That concluded her report.

The Bishop confirmed the Acts of Synod

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Contents

Diocese of Edinburgh Scottish Episcopal Church

Scottish Charity Number SC001214

Report and Accounts for the Year ended 31December2017

Reference and administrative details

Report of the Standing Committee (Trustees' report)

page

2

3

Statement of responsibilities of the Members of the Standing Committee 8

Independent auditor's report

Statement of financial activities

Balance sheet

Statement of cash flows

Notes to the accounts

9

12

13 14

15

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NAME OF CHARITY

SCOTTISH CHARITY NUMBER

PRINCIPAL ADDRESS

Diocese of Edinburgh Scottish Episcopal Church (Edinburgh Diocesan Synod)

SC001214

Edinburgh Diocesan Office 21A Grosvenor Crescent Edinburgh EH12 SEL

Email: [email protected] Internet: www.edinburgh.anglican.org

STANDING COMMITTEE

(TRUSTEES)

Ex officio:

For the purposes of charities law, the members of the Standing Committee are the Charity Trustees of the Diocese. As at the date of this report, the Trustees and members of the Standing Committee were:

The Right Rev. Dr John Armes (Convenor) The Very Rev. Frances Burberry (Dean)* Godfrey Robson (Diocesan Secretary)** Ian Lawson (Convenor, Finance and Management Committee)** Mr Colin Heggie (Registrar) The Rev. Ruth Green (Convenor, Mission and Ministry Committee)***

Appointed by Synod: The Rev. Canon Ian Paton (retired 17 March 2018)

CUSTODIAN TRUSTEES

SECRETARY

TREASURER

ADMINISTRATOR

BANKERS

SOLICITORS

AUDITORS

The Rev. Canon Malcolm Round (retired 17 March 2018) Mr Neil Stewart** Ms Victoria Stock**

*Appointed 20 January 2017 **Appointed 11March2017 ***Appointed 22 June 2017 ****Appointed 25 March 2018

The following are Custodian Trustees for the Diocese in respect of heritable and moveable property:

The Right Rev. Dr John Armes (Bishop) The Very Rev. Frances Burberry (Dean) (appointed 20 January 2017) lain Peebles, Lord Bannatyne (Chancellor) Mr Colin Heggie (Registrar)

Godfrey Robson (appointed 11 March 2017) Canon David Palmer (resigned 11 March 2017)

Vacant Mr Nigel Cook {deceased 10 November 2017)

Mr Simon Filsell

Reliance Bank Ltd Faith House, 23-24 Lovat Lane, London EC3R BE

Flexlaw CBC House, 24 Canning Street, Edinburgh EH3 BEG

Chiene +Tait LLP

Chartered Accountants and Statutory Auditor 61 Dublin Street, Edinburgh EH3 6NL

Except where stated otherwise, all Trustees served throughout the financial year.

2 Report and Accounts 2017

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Diocese of Edinburgh S otli h Episcopal Church

Report of the Standing Committee (Trustees' report) Year ended 31December2017

As Trustees of the Diocese of Edinburgh, the Standing Committee presents its report and the audited accounts of the Diocese for the year ended 31December2017. These have been prepared in accordance with applicable charities law and the reg uirements of the Statement of Recommended Practice Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Objectives and activities

The primary charitable purpose of the Diocese is the advancement of religion and to provide public benefit The main activities of the Diocese are the provision of spiritual, pastoral, administrative and financial support to its Charges (or local congregations) and their members in carrying out the ongoing mission of the Christian Church.

These activities are pursued through:

• training and leadership in mission and ministry; • conferences, retreats and educational events; • support for youth and children's activities; • grants to Charges to support mission activity; • access to central administrative facilities.

Achievements and performance

The Diocese has continued to pursue its principal objectives and activities. The main emphasis continues to be in the area of mission and ministry development

The Rev. Annie Naish, whose appointment in September 2016 as the Bishop's Enabler of Mission, has facilitated the development of a new Diocesan Strategy for Mission - 'Growing Together'. During 2017, four roadshows were held in different parts of the Diocese, and encouragement was given to all charges to engage with this vision. Rev. Naish has also supported individual congregations with sermons, vestry away days and mission training.

The Diocese has also supported mission and ministry in specific areas, notably in helping to develop joint working arrangements between Borders charges and assisting strategic planning for growth amongst smaller congregations in deprived areas of Edinburgh. The Diocese's Youth and Children's Officer provides significant support to charges, and organises training events, the Children's Play Church and an online newsletter. Mission grants, totalling £3,500, were paid to charges from the St Hilda's Fund.

In addition to mission grants, the Diocese has continued, through its Buildings Committee, to support charges investing in their buildings. Grants for emergency building work were awarded from the St Andrew's Fund (arising from the recent sale of the former St Andrew's Church, Preston pans). It is anticipated that a sale will shortly be concluded for the former St Paul's Church in Livingston which is no longer used by the Livingston congregation. The purchasers will use the site for social housing.

Access to central administrative facilities was provided to charges through printing services, website management and advice, and support for treasurers.

This last item was provided with efficiency and precision by the Diocesan Treasurer, Nigel Cook, who died suddenly on 10 November 2017, not long after presiding at a conference he organised for charge treasurers. His contribution to the work of the Standing Committee and the Diocese was enormous and his loss is keenly felt. The Committee is greatly indebted to the Diocesan Administrator for maintaining financial procedures and accounting processes in the months following Nigel's death. Arrangements are in hand for the recruitment of a new Diocesan Treasurer in 2018.

A full review of the activities of the year is given in the reports to Synod of the various committees, which are available from the Diocesan Office.

Report and Accounts 2017 3

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Report of the Standing Committee (continued) Year ended 31December2017

Financial review

Sources of funding

The Diocese is dependent for the majority of its income on quota contributions from Charges and grant funding from General Synod. In 2017 these accounted for respectively 63% and 15% of total recurring income. A further 13% is derived from the return on diocesan investments. Quota requested from Charges is based on budgeted expenditure and allocated among Charges in proportion to their assessable income.

Review of the financial position

The Diocese sustained a deficit on its general fund of £12.6k, following a similar deficit of £13k in 2016. The general fund represents the day-to-day operations of the Diocese, to the extent that they are not specifically funded from ring-fenced donations or specially designated reserves. As such, a recurring deficit is unsustainable, even if it is compensated by underspending in special funds or by unrealised increases in the value of investments. The Standing Committee will be considering means by which the general fund budget may be balanced in future.

The financial position of the Diocese is shown in the Balance Sheet on page 13. Total funds at 31 December 2017 amounted to £4.569m, an increase of £506k over the year, largely as a result of the unrealised growth in value of investments held in the SEC Unit Trust Pool. Substantially all of the increase was attributable to funds designated for or restricted to particular purposes.

The budget for 2017, approved by Diocesan Synod in October 2016, allowed for a deficit on general funds of £22k. In the event, a combination of savings, better than expected investment income and unanticipated costs, led to a reduced deficit on general fund of £12.6k. Results were broadly similar to 2016.

For the second year in succession, applications for grants from the St Hilda's Fund for mission and the St Andrew's Fund for emergency building works were insufficient to utilise all the income available and there was an unexpended surplus of £13.0k on funds designated for these purposes. A further £9.Sk was unexpended on restricted funds, largely as a result of timing.

Policy on investments

The Diocese retains all its securities investments in the Scottish Episcopal Church Unit Trust Pool (UTP). The investment policy of the UTP, which accords with that of the Standing Committee, is to earn a return on the assets, over the long term, sufficient at least to maintain the real value of the distribution to unit holders. The UTP Investment Committee recognises its responsibilities to optimise investment returns whilst striving to meet reasonable ethical investment expectations. It aims to invest in companies that will not only successfully develop their business financially in the interests of shareholders, but also demonstrate responsible employment and good corporate governance practices, are conscientious regarding environmental performance and human rights, and act with sensitivity to the communities in which they operate.

The Investment Committee has also adopted strict "negative" criteria as a significant element of the ethical investment policy. No direct investment will be made in companies whose main business is in any of the following restricted categories: armaments, gambling, tobacco and pornography. The Committee is committed to seeking to identify companies whose operational activities give rise to ethical concerns, and will positively engage with, and if deemed appropriate, disinvest from such companies whose securities are held within the investment portfolio.


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Financial review (continued)

Principal risks and uncertainties The Standing Committee continues to review risks and uncertainties, and the mitigating measures that can be adopted to minimise exposure. The principal risks are:

• dependency on collecting quota from Charges - this is managed through regular monitoring of receipts and follow-up with Charges; review of Charges' annual accounts; regular pastoral contact with Charges; and encouragement for Charges to switch to collection by direct debit;

• reliance on investment performance - all funds are placed with the Scottish Episcopal Church UTP, which is considered to be a low-risk product with a sound ethical basis;

• security of assets and systems - the diocesan office is protected against fire and intrusion, data backups are held off-site, and the Diocese is working towards developing a disaster recovery plan;

• the potential loss of key personnel - the Diocese plans to review the terms of employment contracts and will review and document temporary cover for critical tasks.

Policy on reserves

The net assets of the Diocese are held in a range of diverse funds. Some of these are restricted funds, whose income can only be expended in accordance with the wishes of the donor or the purposes for which the fund was raised. Other funds are held to generate income to fund the activities of the Diocese.

Total funds at 31 December 2017 were as follows:

Funds held as: Total Tangible

Investments Other assets £'000s funds assets

Restricted income funds 244.7 - 183.3 61.4

Designated capital funds 2,792.7 927.8 1,864.9 -

Designated revenue funds 1,398.9 - 1,345.8 53.1

General fund 132.6 6.8 95.3 30.5

Total funds 4,568.9 934.6 3,489.3 145.0

Designated capital funds represent either (a) past sums granted to the Diocese with the intention that they be invested to generate income to further the activities of the Diocese or (b) funds invested in the Episcopal residence. In 2017 invested capital funds generated income of £54.9k to support diocesan expenditure.

Designated revenue funds represent sums intended to generate income for mission or building grants within the Diocese. The income generated in 2017 amounted to £39.7k, of which £26.7kwas expended during the year on mission support Standing Committee intends that the income of these funds be fully expended each year.

The Standing Committee has a number of responsibilities to meet, which include payment of stipends and salaries to central and diocesan personnel, maintenance of the diocesan office and its facilities, and support of diocesan Charges in their mission. The committee considers it necessary to retain a sum sufficient to provide working capital to cover day-to-day expenditure and to enable its responsibilities to be discharged in the event of any significant interruption or reduction in its income. This would enable the Diocese to maintain its current level of activities for a reasonable period until replacement funding can be obtained.


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Financial review (continued)

Policy on reserves (continued}

In line with other charitable bodies of similar size and level of financial commitment, the Standing Committee seeks to maintain a minimum of3 months' average annual expenditure in freely available reserves. At 31 December 2017 the minimum requirement of 3 months budgeted general fund expenditure amounted to £157.3k; freely available reserves at the same date (general fund excluding tangible assets) amounted to £125.8k (or 10 weeks' expenditure) . Steps will be taken in future years to increase the balance of freely available reserves.

Plans for future periods

Standing Committee anticipates continuing all the activities in which the Diocese is currently involved.

The Committee will continue to work with the Bishop's Enabler of Mission to develop, implement and communicate a fuller Mission Strategy which will enable us to determine where our time, energy and expenditure might best be focused. The Diocese aims to continue to assist charges with limited financial means to collaborate with their neighbouring charges in developing a continuing presence and enhanced mission and ministry in their areas.

The Committee will seek to encourage a greater take-up and use of funds available for mission and stipend support and urgent buildings maintenance from the St Hilda's and St Andrew's funds.

The Committee aims to appoint a new Diocesan Treasurer in the coming months.

Structure, governance and management

The Diocese is an unincorporated association, governed by a Constitution (the 'Administrative Scheme'), and subject to Canon Law of the Scottish Episcopal Church and Resolutions of its General Synod.

Founded in 1633, the Diocese is one of seven dioceses of the Scottish Episcopal Church, part of the Anglican Communion. The Diocese covers an area comprising Edinburgh, the Lothians, Scottish Borders and Falkirk The Bishop of Edinburgh is chief pastor to 55 Charges, or local congregations, within this area. Congregational Charges within the Diocese are separate registered charities, and their transactions do not form part of these accounts.

Charges in the Diocese are grouped into seven areas. Each has an Area Council, comprised of the lay representative and clergy representative and one other lay person for each Charge in the area. The councils further the work of the Church in their area and act as a channel of communication between the congregations and Synod in both directions. Area Councils are required by the Constitution to meet at least three times each year.

The principal governing body of the Diocese is Diocesan Synod, which meets at least once each year to receive reports, appoint committees and officials, and transact any other business referred to it. Its membership comprises the Bishop, all instituted, licensed or commissioned clergy in the Diocese, a Lay Representative elected by each Charge, diocesan officials and members of the laity licensed to a specific duty within the Diocese.

Between meetings of Synod the Standing Committee acts as Executive Committee of the Diocese. It is responsible for managing and safeguarding the assets of the Diocese. It implements Synod decisions, supervises diocesan committees and communications between them, and considers business raised by Charges within the Diocese. It is required by the Constitution to meet at least three times each year.


Page 17 of 50

Diocese of Edinbu gh Scottish Episcopal Church


Structure, governance and management (continued)

For the purposes of charities law, the members of the Standing Committee are the Trustees of the Diocese; all are appointed or elected from within the Diocese and its Charges. The Convenor of the Standing Committee is the Bishop, who is elected by representatives of Charges in the Diocese. The Vice convenor is a lay person appointed by the Standing Committee from within its membership. Two clerical and two lay members are elected by the Diocesan Synod. The elected members have a four year term of office. The Dean, Registrar, Secretary, Treasurer, and Convenors of the Mission and Ministry Committee and the Finance and Management Committee are members ex officio. The Standing Committee has power to fill ad interim vacancies occurring between meetings of Synod.

The names of the current Trustees at the date of this report are shown on page 2, together with their dates of appointment if after 1January2017. Also serving as Trustees during the year were:

• Canon David Palmer (Vice Convenor, Diocesan Secretary and Convenor of the Finance and Management Committee) (resigned 11 March 2017)

• Mr Nigel Cook (Treasurer) (deceased 10 November 2017) • The Rev. John Conway (Convenor, Mission and Ministry Committee) (resigned 22 June 2017) • Mrs Anne Pankhurst (resigned 11March2017) • Ms Zoe van Zwanenberg (resigned 11March2017) • The Rev. Canon Ian Paton (resigned 17 March 2018) • The Rev. Canon Malcolm Round (resigned 17 March 2018)

New members of the Standing Committee are provided with an induction pack and receive relevant support for their role on appointment

The remuneration of key personnel is determined on the basis of scales compiled by General Synod of the Scottish Episcopal Church.

The Standing Committee has two pendant committees. The Mission and Ministry Committee exists to encourage, accompany and resource local congregations and individuals on their journey of faith . Its remit also includes ministerial development The Finance and Management Committee is concerned with the administration and day-to-day finances of the Diocese. It is responsible for the preparation of budgets and cash flows, the setting of Quota levels from Charges, and the preparation of the annual accounts. Each committee has a number of subsidiary committees reporting to it.


Reference and administrative details are given on page 2.

Conclusion

The members of the Standing Committee would like to thank all those who contribute their time, energy and money so generously to ensure that the Diocese can continue to provide a central support and common link point to all the Charges within the Diocese.

ONBEHALFO;?jf~

~John Ed~;;; The Right Rev. Dr John Armes Convenor, Standing Committee 29 May 2018


Page 18 of 50


Statement of responsibilities of the Members of the Standing Committee

The Members of the Standing Committee, as charity trustees, are responsible for preparing the Annual Report and the Accounts in accordance with applicable law and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1January2015).

The law applicable to charities in Scotland requires the members of the Standing Committee to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Diocese and of its income and expenditure for that period. In preparing these accounts members of the Standing Committee are required to:

• select suitable accounting policies and apply them consistently; • observe the methods and principles in the Charities Statement of Recommended Practice: • make judgements and estimates thatare reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any departures

disclosed and explained in the accounts; and • prepare the accounts on the going concern basis unless it is inappropriate to presume that the

Diocese will continue in operation.

The members of the Standing Committee are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Diocese and enable them to

ensure that the accounts comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Administrative Scheme for Edinburgh Diocesan Synod.

The members of the Standing Committee are also responsible for safeguarding the assets of the Diocese and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The members of the Standing Committee are responsible for the maintenance and integrity of the charity and financial information included on the diocesan website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.


Page 19 of 50

Dio ese of Edi nburgh Scottish Episcopal Church

Independent auditor's report

to the Standing Committee

Opinion on accounts

We have audited the accounts of the Diocese of Edinburgh Scottish Episcopal Church for the year ended 31 December 2017 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

• give a true and fair view of the state of the Diocese of Edinburgh's affairs as at 31 December 2017 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the Diocese of Edinburgh in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or

• the trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the Diocese's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Standing Committee other than the accounts and our auditor's report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

continues over page


Page 20 of 50


Independent auditor's report (continued)

Other information (continued)

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

• the information given in the Report of the Standing Committee is inconsistent in any material respect with the accounts; or

• proper accounting records have not been kept; or • the accounts are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of responsibilities of the Members of the Standing Committee on page 8, the trustees are responsible for the preparation of accounts which give a true and fair view.

In preparing the accounts, the trustees are responsible for assessing the ability of the Diocese to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Diocese or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the accounts

We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report to you in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at http: //www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

continues over page


Page 21 of 50


Independent auditor's report (continued)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with section 44(1) ( c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

CHIENE +TAIT LLP

Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL

Z7 j~2018

Chiene +Tait LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006


Page 22 of 50


Statement of financial activities Year ended 31December2017

Income and endowments from

Donations and legacies

Charitable activities Quota receipts due from Charges General Synod grant funding Other grants and funding Other charitable activities

Other trading activities

Investments

Total income and endowments

Expenditure on Raising funds

Note

3

4

5

6

7

Charitable activities 8 Quota paid to General Synod Mission and ministry activities Grants and bursaries Information and communication Diocesan clergy Diocesan office Governance

Total expenditure

Net operating income / (expenditure)

Gains on investment assets

Net income/ (expenditure)

Transfers between funds

Net movement in funds

Reconciliation of funds Total funds at 1January2017

Total funds at 31 December 2017

9

10

20

Unrestricted funds General Designated Restricted

fund funds funds £ £ £

21,569 5,106

484,063 114,650

15,904 9,843

493,906 130,554

17,565

59,260 39,652 5,401

592,300 39,652 141,061

55

277,461 - -

80,343 21,152 95,774 1,449 5,500 25,369

11,035 - -

70,924 - 10,420 144,342 - -

19,299 - -

604,853 26,652 131,563

604,908 26,652 131,563

(12,608) 13,000 9,498

13,529 456,122 26,043

921 469,122 35,541

921 469,122 35,541

131,691 3,722,488 209,183

132,612 4,191,610 244,724

All income and expenditure derive from continuing activities.

Total funds

2017 2016 £ £

26,675 26,315

484,063 478,464 114,650 128,311

15,904 17,239 9,843 9,215

624,460 633,229

17,565 14,197

104,313 99,493

773,013 773,234

55

277,461 269,378 197,269 192,800

32,318 48,203 11,035 9,556 81,344 93,929

144,342 134,246 19,299 23,759

763,068 771,871

763,123 771,871

9,890 1,363

495,694 342,397

505,584 343,760

505,584 343,760

4,063,362 3,719,602

4,568,946 4,063,362

All income, gains, expenditure and losses recognised in the period are included above.

Comparative information for all fund values presented above is given in the relevant note.

The notes on pages 15 to 27 form part of these accounts.


Page 23 of 50

Diocese of Edinburgh Scottish Episcopal Chur ch

Balance sheet 31December2017

Fixed assets Tangible assets

Investments

Current assets Debtors Cash at bank and in hand

Liabilities Creditors: amounts falling due within

one year

Net current assets

Total net assets

Funds of the charity

Restricted income funds

Unrestricted funds: Designated funds General fund

Total charity funds

Note

16

17

18

19

20

Unrestricted funds General Designated

fund funds £ £

6,812 927,799

95,323 3,210,649

102,135 4,138,448

127,608 20,574 (42,225) 37,588

85,383 58,162

54,906 5,000

30,477 53,162

132,612 4,191,610

4,191,610 132,612

132,612 4,191,610

Restricted funds

£

183,318

183,318

2,803 66,237

69,040

7,634

61,406

244,724

244,724

244,724

APPROVED FOR ISSUE BY THE STANDING COMMITTEE (TRUSTEES) ON 29 MAY 2018 AND SIGNED ON THEIR BEHALF BY

~John Edenburgen The Right Rev. Dr John Armes Convenor, Standing Committee


Report and Accounts 2017

Total funds

2017 2016 £ £

934,611 937,299

3,489,290 2,993,596

4,423,901 3,930,895

150,985 93,527 61,600 97,956

212,585 191,483

67,540 59,016

145,045 132,467

4,568,946 4,063,362

244,724 209,183

4,191,610 3,722,488 132,612 131,691

4,568,946 4,063,362

13

Page 24 of 50


Statement of cash flows Year ended 31December2017

Cash flows from operating activities Net cash (used in) operating activities

Cash flows from investing activities Dividends, interest and rents from investments Purchase of property and equipment

Net cash provided by investing activities

Change in cash and cash equivalents in the reporting period

Cash and cash equivalents at the beginning of the reporting period

Cash and cash equivalents at the end of the reporting period

Note £

23

100,433

2017 2016

£ £ £

(136,789) (100,812)

99,493 (3,525)

100,433 95,968

(36,356) (4,844)

97,956 102,800

61,600 97,956



Page 25 of 50


Notes to the accounts Year ended 31 December 2017

1. Accounting policies

a) Basis of preparation

These accounts have been prepared under the historical cost convention as modified by the revaluation of investment assets, and are in accordance with the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic oflreland (FRS 102) (effective 1January2015), The Financial Reporting Standard applicable in the UK and Republic oflreland (FRS 102), and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The Diocese constitutes a public benefit entity as defined by FRS102.

b) Going concern

The accounts have been prepared on a going concern basis. The members of the Standing Committee have assessed the ability of the Diocese to continue as a going concern and have reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for at least 12 months from the date of approving the accounts. They thus continue to adopt the going concern basis of accounting in preparing these accounts.

c) Fund accounting

Unrestricted funds may be used at the discretion of Standing Committee to further any of the purposes of the Diocese, including to supplement expenditure from restricted funds. Standing Committee may choose to set aside part of the unrestricted funds as a designated fund for a particular future project or commitment

Restricted funds can lawfully only be used for the purpose specified by the donor or resulting from the terms of an appeal. Some restricted funds may be capital funds in that only the income of the fund may be expended to further the objectives of the Diocese.

Details concerning the main funds of the Diocese are given in note 20.

d) Recognition of income

Income is recognised in the statement of financial activities when the Diocese becomes entitled to the income, there is probability of receipt, and its monetary value, including any associated costs, can be measured reliably. Income is deferred where it relates to activities or services delivered in a later accounting period.

Income from donations and legacies includes donations, legacies and grants which are of a general nature. In the case oflegacy income where there is uncertainty as to amount, the fair value of the income receivable may be estimated on the basis of available information.

Income from charitable activities comprises quota receivable from Charges, grants to support the activities of the Diocese, and income derived from courses, retreats and conferences which further the purposes of the Diocese.

Income from other trading activities includes receipts from activities which are not part of the main objectives of the Diocese. This includes income from sub-letting office space and recoveries in respect of use of office resources.

Income from investments, derived from securities, deposits and let property, is recognised as it falls due.

Other income comprises income that cannot be reported under any other heading.


Page 26 of 50


Notes to the accounts (continued) Year ended 31December2017

1. Accounting policies (continued)

e) Recognition of expenditure

16

Expenditure is accounted for on an accruals basis, being recognised when there is a legal or constructive obligation to pay, probability that settlement will be required, and the amount can be measured or estimated reliably.

Expenditure on raising funds includes costs of investment management, including agents' fees and maintenance costs incurred on let property.

Expenditure on charitable activities includes all costs incurred in undertaking the charitable objectives of the Diocese. This includes costs directly incurred by the Diocese, and stipend support costs and grants awarded to congregations and individuals.

Liability for grants payable is recognised at the time of the grant being awarded.

Governance costs represent the costs associated with general running of the Diocese as opposed to costs associated with charitable activities. These include external scrutiny, legal advice, Synod and committee meetings, honoraria paid to diocesan officials, and other costs associated with constitutional and statutory requirements. They include costs associated with strategic as opposed to day to day management of activities.

f) Allocation of support and governance costs

There is considered to be one sole activity, the mission and ministry of the Christian Church. Therefore, support costs (including governance) are presented as an additional component of expenditure on charitable activities without apportionment to specific projects.

Rentals paid under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged as an expense on a straight line basis over the period of the lease, even if the payments are not made on such a basis.

g) Taxation

The Diocese is a registered Scottish charity exempt from tax on income and gains applied to charitable purposes. Income tax is recoverable in respect of gift-aided donations. The Diocese is not registered for Value Added Tax and is therefore unable to reclaim VAT incurred on expenditure, which is therefore shown gross of this irrecoverable VAT.

Heritable property is valued at cost to the Diocese. The Standing Committee considers that the cost of carrying out a professional valuation to include properties in the accounts at valuation would be disproportionate to any additional benefit derived by users of these accounts. The properties are not depreciated in the accounts as residual value is deemed sufficiently high that any depreciation would be immaterial.

Fittings are written off to revenue in the year ofacquisition.

Equipment with a purchase price greater than £2,000 is capitalised and depreciated over its assessed useful economic life on a straight-line basis. Other equipment is written off to revenue in the year ofacquisition.

h) Financial instruments

The Diocese carries only basic financial assets and liabilities. These may comprise investments in securities, amounts receivable and payable, and cash deposited with banks. Financial assets and liabilities are initially valued at cost; subsequently, investment assets are valued at market valuation (excluding any costs of realisation or disposal) and other assets and liabilities are valued at the best estimate of settlement amount


Page 27 of 50



1. Accounting policies (continued)

i) Invesnnent assets

The Diocese owns one social investment property: a former church building, St Andrew's, Niddrie, which is leased to a community arts group. The Diocese intends to continue to use this asset to support community and social projects in the area. This asset is recorded in the accounts with a notional value of £100.

Investments in securities (or ones valued by reference to such investments, such as unit trusts) are recorded at market valuation.

j) Gains and losses

Realised gains and losses on security investments are calculated as the difference between the net sales proceeds and their valuation at the start of the year (or subsequent cost) and are recognised in the statement of financial activities in the year of disposal.

Unrealised gains and losses represent the movement in market valuation during the year and are recognised in the statement of financial activities based on market valuation at the year end.

k) Retirement benefits

The Scottish Episcopal Church operates a defined benefit non-contributory pension scheme. The Diocese pays contributions to this multi-employer scheme in respect of its stipendiary clergy and administrative staff. Contributions to the scheme are set at rates designed to spread the cost of pensions over the working lives of its members, and are charged in the accounts on a due and payable basis. The rate of contributions is determined by a qualified actuary. The amount of the charge for the year is disclosed in note 12.

2. Related party transactions

The nature of the Diocese requires that it has many financial transactions with the General Synod of the Scottish Episcopal Church and with Charges in the Diocese. As members of the Diocesan Standing Committee are connected with their respective local church congregations and certain members are also members ofBoards and Committees of the General Synod, these bodies are related parties under FRS 102, and transactions with them are "related party transactions''. The governance procedures of the Diocese and of General Synod require that members of all Boards and Committees declare their interest in any grant or loan application prior to its discussion by the Board or Committee.

FRS 10 2 requires disclosure of material related party transactions and year end balances with related parties. In the case of the accounts of the Diocese, these are for the most part separately disclosed in the statement of financial activities, the balance sheet or in the notes to the accounts. To reduce the volume of information given, FRS 10 2 permits aggregation of transactions of a similar nature. This practice has been followed in relation to quota from local congregations, and balances due in respect of the payroll bureau service.

As regards General Synod, the Diocese pays quota to and receives grants from General Synod. The Diocese also rents office space from General Synod at a cost of £20,189 (2016: £20,189). As regards local congregations, the Diocese receives quota from and pays grants to individual congregations. A central payroll bureau service and use of central office facilities are offered to congregations, for which nominal charges are made. Balances due by and to congregations in respect of quota and the payroll bureau service are disclosed in notes 18 and 19.

The total amount of unconditional donations received from trustees or other related parties was £1,320 (2016: £1,320).


Page 28 of 50

Diocese ofEdinburgh Scottish Episcopal Church


3. Income from donations and legacies

Donations and gifts Allchurches Trust Other donations and gifts

Legacies

Total income from donations and legacies

Fund totals 2016

4. Income from charitable activities

Quota receipts due from Charges

General Synod grant funding Mission and ministry support grant Curate support grants Ministry development service Dunderdale funds:

Endowment of bishoprics Endowment of charges

Dean's allowance Other funding

Other grants and funding Walker Trust

Other charitable activities !ME course fees Clergy conference Adventures in Faith Diocesan retreat Youth and children's events

Total income from charitable activities

Fund totals 2016: Quota receipts due from Charges General Synod grant funding Other grants and funding Other charitable activities

18

General fund

£

18,981 2,588

21,569

22,093

General fund

£ 484,063

199 5,400 2,977 1,100

167

9,843

493,906

478,464

9,215

487,679

Designated funds

£

Designated funds

£

Restricted Total funds funds 2017 2016

£ £ £

18,981 18,981 5,106 7,694 6,834

500

5,106 26,675 26,315

4,222 26,315


£ £ £ 484,063 478,464

27,493 27,493 23,823 70,252 70,252 70,203

18,225

8,500 8,500 8,480 5,880 5,880 5,660 1,920 1,920 1,920

605 605

114,650 114,650 128,311

15,904 15,904 17,239

199 435 5,400 5,465 2,977 3,230 1,100

167 85

9,843 9,215

130,554 624,460 633,229

478,464 128,311 128,311

17,239 17,239 9,215

145,550 633,229


Page 29 of 50



5. Income from other trading activities

Office earnings

Total income from other trading activities

Fund totals 2016

6. Income from investments

Listed securities and unit trusts Cash deposits Investment properties

Total income from investments

Fund totals 2016

7. Raising funds

Investment properties

Total other income

Fund totals 2016


General fund

£

17,565

17,565

14,197

General fund

£ 57,751

9 1,500

59,260

56,565

General fund

£

55

55

Designated funds

£

Designated funds

£ 39,652

39,652

37,782

Designated funds

£


£ £ £

17,565 14,197

17,565 14,197

14,197


£ £ £ 5,401 102,804 97,955

9 38 1,500 1,500

5,401 104,313 99,493

5,146 99,493


£ £ £

55

55

19

Page 30 of 50



8. Expenditure on charitable activities

General Designated Restricted Total funds fund funds funds 2017 2016

Note £ £ £ £ £

Quota paid to General Synod 277,461 277,461 269,378

Mission and ministry activities Ministry development:

Stipends and salaries 19,804 24,196 44,000 28,540 Other costs 14,891 15,368 30,259 31,962

Clergy conference 15,000 15,000 14,125 Diocesan retreat 2,460 2,460 Youth and children:

Salaries 22,808 22,808 22,403 Other costs 1,321 1,321 2,046

International links 2,459 Curate stipends 70,252 70,252 70,203 Local ministry 2,246 5,784 1,326 9,356 19,472 Chaplaincies 1,813 1,813 1,590

80,343 21,152 95,774 197,269 192,800

Grants and bursaries Grants for congregations 5,500 9,237 14,737 20,480 Walker Trust grants and bursaries 11,704 11,704 13,839 Other grants and bursaries 1,449 4,428 5,877 13,884

1,449 5,500 25,369 32,318 48,203

Information and communication Communications co-ordinator 6,010 6,010 5,400 The Edge (diocesan magazine) 3,776 3,776 3,666 Website development and delivery 1,249 1,249 490

11,035 11,035 9,556

Diocesan clergy Bishop:

Stipend 40,241 8,500 48,741 48,467 Residence 11,083 11,083 23,191 Expenses 6,672 6,672 8,375

Dean (expenses and congregation allowance) 12,928 1,920 14,848 13,896

70,924 10,420 81,344 93,929

Diocesan office Support staff salaries 69,993 69,993 67,254 Training and expenses 1,352 1,352 524 Premises costs 29,841 29,841 34,575 Administration 25,699 25,699 22,174 Equipment maintenance 14,769 14,769 7,031 Equipment depreciation 2,688 2,688 2,688

144,342 144,342 134,246

Carried forward 585,554 26,652 131,563 743,769 748,112


Page 31 of 50



8. Expenditure on charitable activities (continued)


Note £ £ £ £ £

brought forward 585,554 26,652 131,563 743,769 748,112

Governance Synod and committee expenses 2,428 2,428 2,112 Honoraria to diocesan officials 4,500 4,500 9,000 Auditors' remuneration 15 3,801 3,801 3,754 Legal fees and expenses 8,570 8,570 8,892

19,299 19,299 23,759

Total expenditure on charitable activities 604,853 26,652 131,563 763,068 771,871

Fund totals 2016: Quota paid to General Synod 269,378 269,378 Mission and ministry activities 68,692 11,164 112,944 192,800 Grants and bursaries 4,406 11,500 32,297 48,203 Information and communication 9,556 9,556 Diocesan clergy 83,529 10,400 93,929 Diocesan office 134,246 134,246 Governance 23,759 23,759

593,566 22,664 155,641 771,871

9. Gains on investment assets


£ £ £ £ £ Unrealised gains on revaluation of

securities 13,529 456,122 26,043 495,694 342,397

13,529 456,122 26,043 495,694 342,397

Fund totals 2016 9,344 315,064 17,989 342,397

10. Transfers between funds

There were no transfers in 2017

General Designated Restricted Total funds fund funds funds 2016

£ £ £ £

Fund totals 2016 (3,525) 3,525


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11. Trustee remuneration, benefits and expenses

No Trustee or member of the Standing Committee received remuneration or benefits in respect of service as trustee.

The following members of the Standing Committee received remuneration in respect of other service to the Diocese:

Name of trustee Why remuneration paid

The Right Rev. Dr John Armes

Remuneration paid

£

Pension contributions

£ Stipend paid for service as Bishop of the

Diocese 38,160 4,500

8,192 Mr Nigel Cook's estate Mr Colin Heggie

Honorarium for service as Diocesan Treasurer Fees paid (including Value Added Tax)

in respect of service as Diocesan Registrar 2,000

Remuneration paid to the Bishop conforms to scales determined by the General Synod of the Scottish Episcopal Church. Remuneration for service as Bishop also includes the benefit of rent-free residential accommodation, in respect of which the Diocese pays Council Tax.

No expenses were paid to trustees during 2017. Expenses totalling£4, incurred on travelling to Synod and Trustee meetings were reimbursed to one trustee during 2016.

No other trustee received remuneration in any respect, nor reimbursement of expenses in respect of performance of duties as trustee.

12. Staff costs and key management personnel

22

Gross stipends and salaries Social security costs Employer's contribution to defined benefit pension scheme

Average numbers employed during the year Clergy (Bishop) Mission and ministry Administration

No employee received emoluments greater than £60,000.

Average headcount 2017 2016

1.00 1.00 3.31 2.68 3.15 2.65

7.46 6.33

The foregoing excludes a communications co-ordinator engaged on a contractor basis.

2017 2016 £ £

137,151 124,013 8,676 7,162

40,397 35,489

186,224 166,664

Full-time equivalent 2017 2016

1.00 1.00 2.19 1.54 1.84 2.10

5.03 4.64

The Diocese considers its key management personnel to comprise the members of the Standing Committee. Details of remuneration and benefits paid are disclosed in note 11.


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13. Retirement benefits

All employees of the Diocese are eligible to join the Scottish Episcopal Church Pension Fund which is a non contributory defined benefit scheme. The Diocese is unable to identify its share of the underlying assets and liabilities of the Fund on a consistent and reasonable basis and so accounts for its contributions as if the scheme were a defined contribution scheme.

With effect from 1January2014, pensionable retirement age was increased to 67, and the annual increase in pensionable salary was capped at the increase in the retail prices index.

The latest valuation as at 31December2014 disclosed that the past service deficit has been eliminated and that the Fund was in surplus by £1.3 million. As a result of the changes introduced on 1January2014, the cost of future benefit accrual has been reduced and the contribution rate was reduced to 32.2% of pensionable remuneration with effect from 1January2016.

There were no unpaid contributions outstanding at 31 December 2017 payable by the Standing Committee.

14. Operating lease rentals

Diocesan office expenditure includes the following payments of operating lease rentals:

2017 2016 £ £

Amounts payable in respect of: hire of plant and machinery 1,728 2,595 other operating leases 31,889 20,189

33,617 22,784

15. Auditors' remuneration

2017 2016 £ £

In respect of: Audit 3,801 3,754 Other accounting services 1,800

5,601 3,754

16. Tangible fixed assets held for use by the Diocese

Land& Office buildings equipment Total

£ £ £ Cost At 1January2017 927,799 13,440 941,239 Additions

At 31December2017 927,799 13,440 941,239

Accumulated depreciation At 1January2017 3,940 3,940 Charge for year 2,688 2,688

At 31 December 2017 6,628 6,628

Continued overleaf


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16.

17.

18.

24

Tangible fixed assets held for use by the Diocese (continued)

Land& Office Total buildings equipment

£ £ £ Net book value At 31 December 2017 927,799 6,812 934,611

At 31December2016 927,799 9,500 937,299

The Diocese owns the Bishop's residence which is shown here at historic cost and is not depreciated. No impairment provision has been made in the accounts as the Standing Committee believes that the value of the property is in excess of the book value.

Investment assets

Listed Social securities

investment and unit property trusts Total

£ £ £ Cost or valuation Carrying value at 1 January 2017 100 2,993,496 2,993,596 Unrealised gain on revaluation 495,694 495,694

Carrying value at 31December2017 100 3,489,190 3,489,290

The social investment property is leased to a community arts group in Craigmillar and is included at a notional value of £100.

Investments in securities (or ones valued by reference to such investments, such as unit trusts) are shown at market valuation. All security investments are held in the Scottish Episcopal Church Unit Trust Pool.

The investment policy of the Diocese is described in the Report of the Standing Committee.

Debtors

2017 2016 £ £

Accrued investment income 53,342 49,462 Quota receipts from Charges in arrears 19,255 884 Payroll bureau balances due from Charges 2,223 127 Other debtors and prepayments 76,165 43,054

150,985 93,527

All amounts fall due within one year.


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19. Creditors: amounts falling due within one year

2017 2016

Grants awarded Quota receipts from Charges in advance Payroll bureau balances due to Charges Accruals and deferred income Taxation and social security Lent appeal funds owed Other creditors

Lent appeal funds

£

11,545 3,647 5,588

13,079 6,132

156 27,393

67,540

£

13,500 9,790 5,235 5,755 5,707 1,362

17,667

59,016

Lent appeal funds represent unexpended funds raised for the Bishop's annual Lent Appeal. Income is not shown in the statement offinancial activities as it is collected by the Diocese on behalf of nominated recipients. The corresponding asset is included within cash at bank in the balance sheet.

During 2017 £11,541 was contributed to the appeal by congregations in the diocese. Payments were made to St John & City Defibrillator Project (£5,720), which seeks to provide defibrillators on all Edinburgh Trams, and to Collective Calling (£5,820), a small humanitarian organisation, providing relief for migrant camps in Greece and Serbia.

Trust funds

Included within other creditors is the sum of £12,854 (2016: £11,105) relating to five small trusts with purposes related to the Scottish Episcopal Church. The diocesan property trustees comprise the trustees of the trusts concerned, which are administered by the Diocese. The corresponding asset is a designated trusts bank account included within cash at bank in the balance sheet

20. Funds and summary offund movements

Restricted funds:

The Bishop's discretionary fund provides grants for the benefit of individual diocesan clergy and also assists other beneficiaries and projects.

Funds for the benefit of Charges relate to the Charges at Livingston and Rosslyn.

The Walker bursary fund receives grants from the Walker Trust to provide bursaries for theological education.

Other restricted funds represent a number of small disparate funds.

Unrestricted funds:

Home and overseas mission funds hold investments which provide income to support the mission of the Diocese (and so investment income is treated as unrestricted in the Statement of Financial Activities).

The Episcopal residence fund represents the value of the Episcopal residence.

Diocesan projects funds represent funds accumulated to assist Charges within the Diocese with mission projects (the St Hilda's fund) , and buildings maintenance (the St Andrew's fund).

Continued overleaf


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20.

21.

Funds and summary of fund movements (continued)

Net operating

Brought income/ Gains/ Carried forward (expense) (losses) Transfers forward

£ £ £ £ £ Restricted funds Bishop's discretionary fund

(including Pitcairn library) 121,033 3,907 15,563 140,503 Funds for the benefit of

specific Charges 49,558 780 7,245 57,583 Walker Bursary Fund 27,468 4,783 2,811 35,062 Other restricted funds 11,124 28 424 11,576

209,183 9,498 26,043 244,724

Unrestricted funds Capita/funds:

Home mission funds 1,588,765 263,083 1,851,848 Overseas mission funds 11,158 1,848 13,006 Episcopal residence fund 927,799 927,799

Revenue funds: Diocesan projects funds 1,194,766 13,000 191,191 1,398,957

3,722,488 13,000 456,122 4,191,610

General fund 131,691 (12,608) 13,529 132,612

3,854,179 392 469,651 4,324,222

Total funds 4,063,362 9,890 495,694 - 4,568,946

Commitments under operating leases

At 31December2017 the total future minimum lease payments in respect of non-cancellable operating leases were as follows:

Amounts payable: not later than one year later than one year and not later than five years later than five years

Total future commitments at 31 December 2017

£

33,617 136,989

170,606

22. Contingent liabilities

26

From time to time the Diocese is required to provide guarantees to third parties in respect of grants or loans advanced to Charges in the Diocese. In the event of non-performance in respect of a grant or non-payment of sums falling due in respect of a loan, the Diocese would have a legal obligation to pay any such sums due by the Charge. Obligations of this nature constitute a contingent liability of the Diocese.


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23. Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period (as shown in the statement offinancial activities)

Adjustments for non-cash transactions and investing or financing activities: Depreciation charges (Gains) on investment assets Dividends, interest and rents from investments

Changes in non-cash balances: (Increase) /decrease in debtors Increase/ (decrease) in creditors

Net cash (used in) operating activities


2017 2016 £ £

505,584 343,760

2,688 2,688 (495,694) (342,397) (104,313) (99,493)

(5 3,578) 1,692 8,524 (7,062)

(136,789) (100,812)

27

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Diocesan Synod 25 October 2018

Comments on Accounts and Budgets

1. Accounts 2017 1.1 The full formal Report and Accounts for 2017 as approved by Standing Committee, audited

and submitted to the Charity Regulator are included in the agenda papers. I apologise that they were not summarised in a more readily digestible form.

1.2 Following Nigel Cook’s death in November 2017, the auditors were commissioned to

prepare the accounts in statutory format. The accounts were prepared and the audit effectively completed by mid-March and I was able to estimate at the last Synod that there would be a £12,000 deficit on our General Fund compared to a budgeted deficit of £22,000.

1.3 You will see this result on page 12 of the Accounts. The significance of the deficit is

perhaps obscured here by the surplus on designated and restricted funds and by the large “gains on investment assets”. But it would be quite wrong to be seduced by the half-million pounds of “net income” for the year without reflecting that most of it represents an increase in the market value of our investments which can’t be sold without denting the income we rely on to pay for our recurring costs. And the surpluses on designated and restricted funds are only available to be carried forward to pay for the special purposes to which they relate and not for the electricity bill or the rent.

1.4 That is why the Trustees’ review of the financial position on page 4 of the Report and

Accounts begins by stressing the need to focus on the General Fund result. 1.5 Turning back to page 12, you will not notice huge differences between the results of the

two most recent years. The most significant points are as follows: 1.6 The 3% increase in quota approved at last year’s Synod should have produced an extra

£14,000, but at the time the accounts were produced it was considered prudent to provide against non-payment by St Thomas’s, and so the increase recorded is only just over 1%.

1.7 The drop in grant funding reflects the final year of transition of Provincial mission and

ministry support to a new “block grant” basis. The total received has fallen from £61,000 in 2015 to £42,000 in 2016 and finally £27,500 in 2017. But this will increase again over the next two years to a regular level of around £40,000. Although this funding is “restricted” income, the reduction has left the General Fund to pick up a greater share of Mission and Ministry costs than in previous years.

1.8 The main savings on expenditure came from a lull in IME and CMD activity, a year without

either international obligations or significant repair costs on the Bishop’s residence, a drop or delay in the need for support for certain charges, and underspending on honoraria. On the other hand, there were additional accountancy costs. But overall, general fund costs were £12,200 below budget. Offset by income that was £2,800 below budget, the overall general fund deficit was £9,400 less than it was budgeted to be.

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2. Financial position 2018 2.1 The 2018 budget was approved at Synod last October again showing a deficit on General

Fund, but reduced to £10,400. The budget assumed that St Thomas’s would continue as a member of SEC, since no formal communication had been received at that time.

2.2 During 2018, St Thomas’s vestry confirmed they would set in motion steps toward leaving

SEC, but at the same time they undertook to settle all outstanding quota commitments before they left. A date for leaving has yet to be set.

2.3 Based on the actual results for the first half-year, and assuming a settlement from St

Thomas’s before the end of the year, a projection has been made for the financial outcome in the full year to 31 December 2018. The forecast general fund deficit is £2,700, as shown in the attached analysis of results and budgets. This comprises a ‘true’ deficit on the activities of the year of £11,400, offset by the reversal of the provision made at 31 December 2017 for potential non-payment by St Thomas’s of quota obligations.

2.4 The date assumed for St Thomas’s departure in preparing the projection is 31 October. It

has also been assumed that an equivalent reduction in Provincial Quota will be allowed from that date. For every month that departure is delayed beyond 31 October, additional net income of approximately £700 should arise in the Diocese.

2.5 The projected drop in income from Diocesan events is directly related to the cessation of

Adventures in Faith activities. Projected income mainly consists of anticipated charges for the clergy conference later this year.

2.6 Mission and ministry costs charged to General Fund are projected to be below budget

because of the cessation of Adventures in Faith and a lull in IME and CMD activity, mitigated by costs relating to the Big Day and Growing Together which were not planned at the time of the budget. (See also 2.9 below)

2.7 Diocesan clergy costs include costs associated with the Bishop’s residence, where repairs

and maintenance have been below budget. 2.8 Office costs exceeded budget largely because of additional bookkeeping and accounting

requirements, and temporary staff costs caused by illness. 2.9 Some mission and ministry costs have been charged against the St Hilda’s Fund which was

created in 2009 from the proceeds of sale of property. Standing Committee designated this Fund for use in supporting mission work in charges. Investment income in the fund in 2018 is expected to be around £35,000. The projected costs of local ministry support and of grants potentially available to congregations have been charged against the Fund, resulting in a projected excess of expenditure of £5,000 for the year, to be met by the Fund’s accumulated revenue reserves.

Page 40 of 50

3. Budget for 2019 3.1 The Diocesan Budget for 2019 is set out attached, compared in total with previous years’

results and budgets, with budgeted income and expenditure allocated between the major funds. The General Fund budget is shown in the final column.

3.2 Notwithstanding the Diocese’s long term aim of returning the General Fund to surplus, the

General Fund budget for 2019 shows another deficit – of £12,500. The reasons for this are explained below.

3.3 In 2018, the amount of quota assessed on St Thomas’s was £19,281. Of that, around half is

passed on the General Synod as Provincial Quota. The remainder – approximately £10,000 per annum – will be lost to the Diocese in 2019 and subsequent years.

3.4 Standing Committee has, in the most recent years, usually been able to restrict annual

increases in quota to 3%. (That’s the increase in total quota income to the Diocese: iIndividual charges will see different levels of increase depending on fluctuations in their own income levels.) Each additional 1% increase in quota results in additional income to the Diocese of around £5,000. In view of the financial impact of the departure of St Thomas’s, Standing Committee recommends an increase of 5% in quota for 2019, which will fully compensate for the loss.

3.5 Significant additional Mission and Ministries expenditure is budgeted, although to the

extent that this relates to special projects in support of mission work in charges this has been allocated against income and accumulated revenue reserves within the St Hilda’s Fund. Major projects include developments in the Berwickshire charges (Eyemouth, Coldstream and Duns) and in the “A7” charges of Galashiels and Hawick, where recruitment is taking place to enable a linkage with the Church Army. Other projects include the sponsorship of a Mixed Mode placement student, provision for discipleship training and events, and the continuation of existing local ministry support programmes.

3.6 With these projects taking up all the annual income in the St Hilda’s Fund (and more),

mission support costs fall to be covered by the Provincial Block Grant for Mission and Ministry and the General Fund. Despite an increase in Block Grant of almost £7,000, it is anticipated that the cost to the General Fund in 2019 will rise by around £10,000 (or 12%) compared to the projected result for 2018. Note however, that the increase over the 2018 budget is only 4.5%.

3.7 This increased budget is (a) to pay for a part-time administrator to help the Dean and the

Bishop’s Enabler of Mission to work more effectively, and (b) to allow a resumption of IME and CMD activities for which there have been little or no costs so far in 2018.

3.8 Donation and legacy income is mainly from Allchurches Trust. That trust has recently

completed a review of its grant-giving policies and proposes from 2019 a new basis which will favour diocese in more populous and deprived communities. No indication has been given as to how this might affect Edinburgh Diocese, but to be prudent a reduction of 10% has been applied in the budget.

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3.9 Provincial Quota has been notified as being 0.6% higher than last year. However, the

budget assumes that the loss of St Thomas’s financial contribution will also be reflected in the amount payable to the Province.

3.10 Information & Communication costs are budgeted to rise following the appointment of a

part-time Diocesan Communications Coordinator from 1 September 2018. This was a delayed appointment, and the 2019 budget is in fact less than the 2018 budget which envisaged the role beginning at the start of 2018.

3.11 Other costs and income are budgeted to be broadly in line with the current year’s expected

result.

4. Conclusion

Standing Committee is keen to ensure that the General Fund returns in time to a regular annual surplus. However, it is not prepared at this time to recommend significant cut-backs in mission activity or support functions in an attempt to match historic income levels. It would rather see mission activity in itself as a form of investment in future growth and income within both congregations and the Diocese, and it commends vestries to avail themselves of the expertise and grants available to help them develop new strategies for mission in their areas. The Committee will be looking carefully at the potential for obtaining higher levels of income from its investments, and will keep examining its activities and support functions to promote efficiency and eliminate wastage. In the meantime, the Committee strongly recommends the proposed increase in quota by 5% so as to offset the immediate financial impact of the departure of St Thomas’s from the Scottish Episcopal Church, and asks Synod to approve the 2019 Budget as submitted.

Ian Lawson Diocesan Treasurer

Page 42 of 50

DIOCESE OF EDINBURGHComparison of General Fund budgeted and actual results

2016 2017 2017 2018 2018 2019Note Actual Budget Actual Budget Projected Budget

£000 £000 £000 £000 £000 £000INCOME

Donations and legacies 22.1 21.0 21.6 22.1 21.1 19.1 Quota 1, 2 478.5 492.8 484.1 507.6 513.1 512.8 Charges for events 9.2 11.4 9.8 10.0 6.1 7.2 Charges for services 14.1 13.6 17.6 16.8 15.9 16.8 Investment income 56.6 56.3 59.2 57.6 59.4 61.2

580.5 595.1 592.3 614.1 615.6 617.1 EXPENDITURE

Provincial Quota 269.4 277.5 277.5 286.2 284.5 277.9 Mission & ministry 73.1 88.1 81.8 85.6 79.8 89.3 Information & comms 9.6 13.0 11.0 17.3 10.3 16.4 Diocesan clergy 83.5 79.3 70.9 74.0 72.7 75.1 Diocesan office 134.2 137.9 144.4 142.9 151.4 151.4 Governance 23.8 21.3 19.3 18.5 19.6 19.5

593.6 617.1 604.9 624.5 618.3 629.6

NET INCOME/(EXPENDITURE) (13.1) (22.0) (12.6) (10.4) (2.7) (12.5)

Notes 12

Quota income in 2017 (actual) excludes £8.7k due by St Thomas's at 31.12.17Quota income projected for 2018 includes the above amount which is now expected to be received.

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DIOCESE OF EDINBURGHProjected outcome for 2018 and Draft Budget 2019 analysed by fund.

GENERALAudited Budget Projected Budget

2017 2018 31/12/2018 2019 Curate Other Other St Hilda St Andrew OtherGrant Grants Provincial restricted

INCOME26,675 27,160 21,111 Donations and legacies 19,130 19,130

484,063 507,605 488,324 Quota 512,740 512,740 24,855 St Thomas's

130,554 114,903 104,765 Provincial and other funding 112,245 39,705 40,000 16,840 15,700 27,408 26,760 21,986 Charges for events and services 24,000 24,000

104,313 100,450 103,353 Investment income 106,500 5,517 35,922 3,837 61,224 773,013 776,878 764,394 774,615 39,705 40,000 16,840 21,217 35,922 3,837 617,094

EXPENDITURE277,461 286,155 284,488 Provincial quota 277,861 277,861 197,269 182,411 173,007 Mission and ministries 226,923 39,705 40,000 62,807 84,411

32,318 56,093 50,277 Grants and bursaries 50,660 6,060 21,217 15,000 3,500 4,883 11,035 17,280 10,276 Information and Communications 16,392 16,392 81,344 83,980 82,694 Diocesan clergy 85,931 10,780 75,151

144,397 142,870 151,460 Office support costs 151,383 151,383 19,299 18,500 19,559 Governance 19,500 19,500

763,121 787,289 771,761 828,650 39,705 40,000 16,840 21,217 77,807 3,500 629,581

9,892 (10,411) (7,367) NET INCOME/(EXPENDITURE) (54,035) (0) (41,885) 337 (12,487)

TOTAL FUNDS at 31 December 2017 4,568,946 244,724 1,238,086 160,871 2,792,653 132,612Net movement forecast 2018 (7,367) (4,950) 300 (2,718)

Forecast funds at 31 December 2018 4,561,579 244,724 1,233,136 161,171 2,792,653 129,894 Budgeted movement 2019 (54,035) (0) (41,885) 337 (12,487)

Budgeted funds at 31 December 2019 4,507,543 244,724 1,191,251 161,508 2,792,653 117,408

RESTRICTED DESIGNATED

M&M Support

3Page 44 of 50

BISHOP'S ENABLER OF MISSION REVIEW OF POST As members of Synod will recall, the appointment to this post is for a three year period, ending in September 2019. A review of the post, and of progress so far, has been undertaken by the Convenor of DMMC and by the Diocesan Secretary, in cooperation with the BEM herself. The report is attached. Its main conclusions are that:

• much has been achieved so far in developing an engagement with mission, and in particular with promoting a sense of cooperation, togetherness and unity of purpose in the Diocese,

• mission strategy and objectives have been clarified, but that • the diocese's missionary impetus is not yet self-sustaining, and therefore there will

be need for a continuing role beyond September 2019, and that • the priorities for the next twelve months are:

• to consolidate, in particular by building an effective mission team to support the

process, and • to give further consideration to developing the role beyond September 2019,

perhaps to encompass ministry and discipleship as well as mission. In the meantime

• the proposed budget for 2019 provides for full-year financing of the post • Synod's views are invited on the review and on the way forward, and • it is intended to bring forward fully developed proposals for the future of the

post, to the March 2019 Synod.

October 2018

Page 45 of 50

Review of Bishop's Enabler of Mission Post - July 2018 Introduction This is a review of the Bishop's Enabler of Mission post and what has been achieved in the first 22 months (September 2016 – July 2018). Views are offered on priorities for the remaining year of the appointment (until September 2019), and on what might follow.

The “primary tasks” for the BEM were set out in the initial job description, which is attached as an appendix .

Evaluation/commentary The 7 primary tasks fit naturally into four main categories - 1) shaping a mission strategy for the diocese and implementing it through the creation and leadership of a mission team, (tasks 2 and 3). 2) supporting congregations and the diocese to develop their own mission, e.g. through training, resourcing, working groups, seminars, etc. (tasks 1, 5 and 6) 3) managing the use of mission funds through the St Hilda's grant scheme (not a major consumer of time but an important ingredient of a developing strategy) (task 4) 4) networking and provincial involvement through the Mission Board, SEI, in the Province and ecumenically. (tasks 5 and 7)

1) Mission Strategy The articulation of strategy has perhaps been slow to emerge, but is now much clearer. The BEM was new to both diocese and the SEC, whose workings are in material ways different from those of the C of E and thus there was, inevitably and understandably, an initial period of orientation and of acquiring a “feel” for the issues. In 2107 the Growing Together initiative was launched, building on a background of inherited earlier work and preparation which included a survey of all the churches and some significant discussions at synod. The BEM led a small team through a period of prayer and reflection, to articulate the diocesan vision and the 5 SEEDS priorities and develop a process of consultation and engagement across the diocese. In summary, the emerging Growing Together strategy is:

• to foster a greater sense of unity of purpose and drive in the diocese • that all churches might be encouraged to work together better in mutual

support and sharing of resources • thus to develop congregations' confidence in their own faith and spirituality • so that they will be motivated and inspired to share that faith and reach

out to their wider communities. The initial period of acclimatisation for the BEM was a busy one, as attested by the range of visits and contacts made, leading to the four roadshows in different locations. In worship, presentations and fellowship, representatives from 48 of our congregations gathered to discuss and help shape the diocesan vision and priorities. Through two subsequent diocesan synods, the Growing Together strategy was overwhelmingly accepted and endorsed, leading to the Big Day celebration at the cathedral in April 2018. This involved huge preparation, but was welcomed as a joyful occasion and a great success. Over 500 folk from across the region gathered in worship, and 45 of our congregations demonstrated something of their life and mission in interactive, creative ways, offering ideas, resources and encouragement Page 46 of 50

to all who came. Whilst those who attended were enthused and convinced, the journey of gaining ‘buy-in’ from clergy and congregations continues. Although the BEM does have an informal network of people she works with and relies on, the creation of a formal ‘Mission Team’ has not yet happened. The original expectation was that she would develop a group of mission facilitators, but take time due to building relationships and trust. Currently there are also serious limitations imposed by the high number of vacancies and subsequent lack of clergy with the time and skills to commit to this. However as the responsibilities of the BEM have expanded considerably beyond what was intended at the outset, the support and assistance needed requires proactive cooperation and involvement from the clergy, if the mission strategy is be adopted at all levels.

2) Supporting Congregations The BEM has spent much time on this, again as attested by the long list of engagements she has undertaken. This initially also served to introduce her to the Diocese, but she has also: • led Vestry away days in developing their local mission strategy • provided workshops on specific subjects such as welcome and hospitality • ran mission courses and lent groups in the diocese • preached and presided around the diocese • taken a leading role in development and negotiation of the proposed A7 Centre

of Mission • begun work to scope possibilities to help congregations reflect on their life

and mission during vacancies • supported the establishment and continued growth of the Mustard Seed

Edinburgh • encouraged, advised and enabled rectors and vestries in the use of various

mission courses and resources • through the Big Day enabled congregations to share their ideas with each

other, and publicised practical resources and support available from outside charities and organisations

By definition the value of all this is hard to assess precisely, but much positive feedback suggests that it has been well received and found helpful by congregations and clergy, and has contributed significantly to raising consciousness of the need for mission.

3) St Hilda's Fund This fund offers a financial resource in aid of mission and the past under spend has led serendipitously to a substantial (albeit one-off) pool of money, sufficiently large to allow funding of new mission-related work. The BEM has produced new ideas for use of this money, established a small advisory group, worked hard to encourage take-up of the fund, which is now fairly integrated with mission priorities. She has also been able to advise and support some charges in making applications to other grant making bodies with some success.

4) Networking and Provincial Involvement The BEM has been assiduous in assisting the province to move forward in mission through her membership of the Mission Board, instigating the development of a provincial Local Mission Resourcing Group, taking on the role of SEC Fresh Expressions representative and joining the Our Common Calling discussions with the C of S. All this work has been of mutual benefit, allowing other mission enablers Page 47 of 50

and dioceses to hear and learn from our experiences such as Growing Together, and rooting our work in this diocese into the wider provincial training and journey towards a mission strategy.

The principles, theology and practicalities of mission in today’s culture are themes which continue to grow and develop rapidly, especially in the national churches of England and Scotland. The BEM has networked extensively with people provincially and ecumenically, and attended relevant conferences to keep abreast of current thinking, practice and resources so this can be cascaded down to inform the diocesan strategy and local mission. Sharing her learning through her teaching, AiF, the Communicant and at Synod, she has encouraged and enabled charges and rectors to engage with various resources, such as “Faith Pictures” and Everybody Welcome.

One specific element of the work of the BEM has been working with the SEI, twice teaching the degree module on Mission Entrepreneurship to ordinands and opening this up to a wider group of priests and lay leaders from the diocese. Such new mission thinking has not only challenged those attending, it has also helped the BEM to stay fresh and continue her own reading and learning.

Overall Assessment Much has been achieved. In particular • the importance of mission has been given a raised profile in the diocese • the Growing Together roadshows around the diocese developed greater

confidence in mission and enthusiasm for working together • the “Big Day” in the Cathedral was a significant event in bringing the

diocese together and giving a sense of shared purpose • the visits to rectors, charges, vestry away days etc. have been important in

relationship building, mission understanding and local mission planning Against this background there are inevitably things that have not gone so well, and lessons to be learned. These include in particular: • the overall burden on the BEM has been excessive, and spread too widely.

This arises in part from her own commitment and enthusiasm, but it is untenable on a permanent basis

• the lack of an official mission team, the development of which was originally envisaged, has meant the BEM has less assistance that was envisaged. This issue needs to be addressed.

• the BEM has at times experienced some confusion over where this role fits in the Diocesan structures and how the office team can work most effectively together. These are probably more general issues which need to be monitored.

Next Steps The present post runs until September 2019, and this affords time to consolidate the achievement so far. For the subsequent period, we have to be aware of cost (the present post costing £50k pa, or £150k for the three years). So, much has been achieved and progress made in the area of engagement with mission. The basic questions are, has enough been achieved so far, is mission development moving in the right direction, and will it have become self-sustaining by the end of the current three year period? The answers seem to be, respectively, yes, yes, and probably no. Without continuation, the gains, and by implication, the full benefits of the investment could be lost. Page 48 of 50

The reviewers would suggest: • consolidation - including continuing the development of the Growing Together

process • advocacy - continuing work with rectors and congregations to help develop

mission planning, secure more “buy-in” from those on the edges and help turn our mission work more outward

• support - making a priority in the next twelve months of building an effective mission team and working better together with other post holders, both current and prospective.

• development – continuing the current strategic planning for how we best invest in our ministry and discipleship across the diocese

• discerning the potential role for a BEM (whoever that might be) after September 2019, with further discussion needed around key priorities, other personnel, creating teams and developments in ministry and discipleship

• further development of our vision for mission with some further work on what, say by 2021, success might look like.

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Job Description: Bishop's Enabler of Mission

Primary Tasks

Congregational support: to run, resource and develop the Mission and the Local Church pro-

gramme (a process of congregational discernment and planning for mission), including the recruitment and training of teams of people from across the diocese to help charges implement the programme.

Mission strategy: help to influence and shape the overall mission strategy of the diocese in collaboration with the Bishop and the DMMC.

Create and lead the Mission Team: working collaboratively with team members to implement the diocesan mission strategy.

St Hilda's Fund: help to determine the use of the fund within the Diocesan mission strategy, advertise it, and within a group reporting to the DMMC, examine applications and make awards.

Mission resourcing: highlighting and providing relevant educational and training resources in support of mission at the local level; keeping informed of developments in mission theology and practice in other Provinces of the Anglican Communion and ecumenically, and cascading this knowledge down to local church leaders; updating the diocesan website and other media channels with relevant materials.

Context/Issue specific working groups and seminars: convene working groups/seminars to reflect on specific challenges related to mission (e.g. rural mission, small charges, linked charges, chaplaincy, contemporary Scottish culture, conflict resolution) and offer that wisdom and best practice to the Diocese.

Network: with equivalent mission officers/personnel across the Province, ecumenically and within the Anglican Communion.

Full Job Title Bishop's Enabler of Mission

Objectives To help develop, implement and communicate the mission strategy of the Diocese.

Line

Responsible to a steering group that includes the Bishop, Diocesan Secretary and Convener of the Diocesan Mission and Ministry Committee.

Contract period, with the possibility of the term being extended upon review andsubject to diocesan staff terms & conditions.

Base &Travel The designated place of work will be the Diocesan Office, but it is Requirements anticipated that a significant time will be spent around the diocese.

Own car / clean driving licence desirable but not essential.

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