THE DIOCESAN PLANNING AND BUDGETING PROCESS
The Deanery Liaison Group
The Deanery Liaison Group (DLG) was established in 1996 to enable deaneries to be directly involved in the planning and budgeting process. It comprises one representative from each Rural Deanery, nominated by the Rural Dean, and it meets three times each year as part of the planning and budgeting procedure.
It is intended to provide a forum in which the views of the parishes and deaneries can be taken into account, but it is also intended to be a mechanism whereby the constraints of the budgeting process are disseminated to deaneries and parishes. The timescale is such that it is not possible to refer the draft budget for consideration by parishes every year, but it is possible for members of the DLG to inform synods and PCC treasurers of the budget implications.
The DLG meets with the Finance Committee in February to discuss the provisional annual accounts for the previous year and to look at the budget forecasts (and the assumptions therein) for the next five years.
The preliminary draft budget
The first draft of the budget is prepared in May (immediately following the approval of the previous year’s accounts) based upon:
- Stipend costs based upon clergy numbers (as determined by the Diocesan Plan), and clergy stipends (recommended by the central stipends authority). 60%
- Housing costs, based on estimates of maintenance work required; Council Tax, water charges, and buildings insurance. 16%
- Training costs related to clergy numbers, and parish ministry support. 7%
- Statutory expenditure (National Church responsibilities, legal officers etc). 5%
- Other costs (administration, diocesan organisations etc), provisionally increased in line with inflation. 7%
Diocesan organisations are invited in March to submit their Annual Reports and plans for the forthcoming year. The plans are presented to the Bishop’s Council in May and the Diocesan Synod in June. The cost implication of these items (about 5% of the total budget) are then incorporated into the first draft budget.
The DLG meets in June to consider this draft budget. Comments from the DLG are brought forward to the Finance Committee which prepares the preliminary budget.
The preliminary budget is issued by the end of June at the latest, so that Deanery Synods can arrange meetings in July to discuss it.
The Final Budget
Following receipt of the Central Returns from parishes, the Parish Share for each deanery is calculated.
The DLG meets in September for the third time to consider the proposed budget with its implication for deanery shares.
The Finance Committee prepares the final budget incorporating the views of the DLG. The Bishop’s Council sets the final budget in September.
At the Diocesan Synod in October or November the budget, together with the principles on which it is based, is presented to the Synod and the Synod is invited to adopt the budget. If it has disquiet, the Synod is entitled to ask the Bishop’s Council to look again at elements of the budget.
THE BUDGET TIMETABLE
January Planning and budgeting request forms distributed
March Deanery Liaison Group Year-end accounts and future projections
March Deadline for Plan and budget submissions
May Bishop’s Council Draft Diocesan Plan
May Financial budget preparation begins
June Diocesan Synod Diocesan Plan
June-August Collect parish statistics
June Deanery Liaison Group Budget (first draft)
June Finance Committee Budget (first draft)
July Deanery Synods Preliminary budget for discussion
August Calculating Deanery Share
September Deanery Liaison Group Final budget (including Deanery Share)
September Bishop’s Council Final budget
Oct/November Diocesan Synod Final budget