Finance
The Committee is
responsible for the general financial oversight of funds administered for the
benefit of the United Reformed Church under the overall authority of the General
Assembly, for ensuring that proper procedures are in place for the maintenance
of accounting records, the safe custody of assets and the preparation of
financial statements, for giving financial advice to other councils of the
Church as appropriate, and for taking such decisions with regard to the finances
of the Church as are necessary within the policies set by General Assembly.
Committee Members
Convener: Mr Eric
Chilton (Honorary Treasurer)
Secretary: Ms Avis
Reaney (Financial Secretary)
Revd David Dones, Mrs
Alison Holt, Mr Graham Law, Mr Errol Martin, Mr Peter Ward (Convener, United
Reformed Church Trust), Mrs Marie Whitman, Mr John Woodman.
1. Our remit
1.1 Last year highlighted
the new working arrangements with the Resource Planning Advisory Group (RPAG).
It has now been decided that the Committee should assume some of the
responsibilities given to RPAG which has been stood down by Mission Council.
However a revised remit is not being brought to General Assembly this year as
the review of governance by Catch the Vision may result in other changes.
2. Risk Assessment
2.1 This is now being
managed by Mission Council Advisory Group acting as the Trustees of the Church.
Positive progress is being made and this should become a continuing process as
required by Charity Law and SORP.
3. Specific tasks
undertaken in 2004
3.1 Acting under
delegated authority from the Mission Council Advisory Group two matters have
been dealt with in conjunction with the United Reformed Church Trust.
3.2 The immediate future
for the premises at Yardley Hastings has been agreed and a licence granted to
East Midlands Synod. This safeguards the interests of the local church whilst
allowing the wider use of the buildings for the time being.
3.3 The phased
development at Windermere to improve facilities for the Centre has occupied
considerable time. Phase 1 which involved the conversion of most of the bedrooms
to en-suite has been completed. The subsequent phases need financing and
consideration continues to be given on the possibility of a national appeal.
4. Personalia
4.1 Firstly, we should
recognise the continuing high quality service given to the Church by its
Committee members. The Finance Committee, United Reformed Church Trust, Retired
Ministers’ Housing Society and the United Reformed Church Ministers’ Pension
Trust Limited each require professional skills and particular expertise. We are
particularly well served in each of these areas where legislation and good
practice are making growing demands on public bodies, particularly
charities. This year we thank John Woodman for his service to the Finance
Committee as he stands down having completed his four year term of office and
Peter Ward who has completed his term of service on the United Reformed Church
Trust.
4.2.1 Secondly, we
acknowledge the work of the Pensions Executive. During 2004, Mission Council
considered the remit of the Pensions Executive and asked it to assume
responsibility for oversight of the church’s lay staff pension scheme which is
administered on the Church’s behalf by The Pensions Trust. This was in addition
to the Pensions Executive’s existing responsibilities in relation to the United
Reformed Church Ministers’ Pension Fund. In relation to the Church’s lay staff
pension scheme the pension executive reports to the Finance Committee.
4.2.2 Mission Council
also considered the membership of the Pensions Executive, which had not
previously been approved by Assembly through the nominations process. Victor
Hughff has been a member of the Pensions Executive for many years serving as
convener until July 2004 and as a member since then. His term of office now ends
and we record our grateful thanks to him for his exceptional service in which he
brought his specialist expertise to the role.
4.3 Thirdly, the staff
have had a difficult year with the loss of the Chief Accountant and other staff
shortages. They have ensured all essential work has been completed on time and
dealt with other matters as expeditiously as possible. A particularly heavy
burden has been borne by the Financial Secretary who has worked very long hours
to meet deadlines.
Resolution
21
Accounts
General Assembly
adopts the accounts for the year ended 31 December 2004.
1. 2004 Accounts
1.1 The 2004 accounts are
set out in the Book of Accounts and include a report from the Finance Committee
commenting on the result for the year and the financial position as at 31
December 2004.
Resolution 22
Appointment of Auditors
General Assembly
resolves that PriceWaterhouseCoopers LLP be appointed auditors of the United
Reformed Church, to hold office until the conclusion of the next meeting at
which accounts are laid before General Assembly and that their remuneration be
fixed by the Finance Committee.
1. Appointment of
auditors
1.1 The United Reformed
Church is required to appoint auditors at each General Assembly at which
accounts are laid before the members. The auditors are appointed from the
conclusion of the forthcoming General Assembly until the conclusion of next
year’s General Assembly.
1.2. During the year we
conducted a review of the audit appointment which has resulted in the
recommendation to appoint a new firm as auditors to the Church. We wish to
express our thanks to the out-going firm, RSM Robson Rhodes LLP who have been
the auditors since the formation of the United Reformed Church.
Resolution 23
The giving of the members of the Church to central funds
General Assembly
gratefully acknowledges the giving of the churches in 2004 to the Ministry and
Mission Fund and the work of the local church, district and synod treasurers.
1. The giving of the
members of the Church to central funds
1.1 The financial
operation of the Plan for Partnership in Ministerial Remuneration could not
happen if each Church Treasurer did not make very great efforts to ensure that
the money required for this part of the work is in the local bank account on
20th of each month, for collection by direct debit.
1.2 That this system runs
very smoothly is evidence of much hard and devoted work, and in thanking the
Church for the response to the appeal for Ministry and Mission, the committee
would also wish to acknowledge that largely unthanked group, the treasurers, in
local churches, and also at district and synod level.
Resolution 24
United Reformed Church Ministers’ Pension Fund investment policy
General Assembly resolves
that:
a) It supports the
ethical dimension of the investment policy currently operated by the Trustee of
the United Reformed Church Ministers’ Pension Fund.
b) If the Trustee
continues to invest the pension fund assets having regard to ethical issues (and
having consulted the Church over any changes to the policy) the Church will
promptly reimburse the pension fund in respect of any losses (including inferior
investment performance) attributable to the ethical dimension of the Trustee’s
investment policy, as identified in periodic reports commissioned by the Trustee
from their professional advisers. Such reimbursement shall be made within a
period satisfactory to the Trustee and, if it so requires, shall be made in
addition to any contributions which would otherwise be required on the advice of
the Actuary.
1 United Reformed
Church Ministers’ Pension Fund investment policy
1. The Trustee of the
United Reformed Church Ministers’ Pension Fund operates an investment policy
consistent with the Church’s ethical investment policy and that the Trustee’s
policy was adopted after consultation with the Church.
2. Best indications are
that the ethical constraints on the Trustee’s investment policy have had a
broadly financially neutral effect over the past 10 years but have had an
adverse effect on financial performance more recently and may continue to have
such an adverse effect in the future.
3. It is for the Trustee
to determine the investment policy of the pension fund and they must do so in
accordance with their legal obligations, acting in the financial interests of
the beneficiaries.
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