Assembly Trustees Update February 2024

Over the period since our last update in November, the trustees have met three times, in December, January and February. Our main focus has been on the way forward for the Church. We remain convinced that lively local church is what matters and that the regional level of church, the presbyteries, has a role that is still evolving to help bring new life locally.

In our October 2023 update we mentioned that we had been looking at the forward budgets, that when we reported to the General Assembly in 2023 we had a serious story to tell, and that the picture in October did not look significantly better. More work was to be done before we finalised the budgets in December.

We did discuss the budgets in December, and we agreed that, unusually, we would need to meet in January to continue the discussion. The reason was the shape of the indicative budgets from 2025 onwards.

Part of our responsibility as Assembly Trustees is to plan for financial sustainability and this continues to be a priority for us going forward.

We have been managing decreasing income and increasing costs. As well as containing the deficits we have for example increased stipends and salaries, provided presbytery core funding and invested in Seeds for Growth. The savings that the Special Commission in 2019 asked for were made, more than £8m, and they would have cleared the then known deficit. We are changing how things are done so we use resources better. Reserve funds have been, and are being, reviewed, to ensure that they can be used to best effect. We are continuing to build in a need for further significant savings in the national administration.

Budgets are based on what is known at the time and taking account of the most likely scenario. They become less certain the further into the future you look to forecast. Between October and December,the General Treasurer and her team reviewed the data, especially around congregational contributions, and we have been able to take a more optimistic view than we presented to the General Assembly in May 2023. Then, we projected that the Church's General Fund would run out by 2027. Now, based on what we consider reasonable assumptions, underpinned by the latest available data, the budgets show a continuing pattern of deficits through to 2029 and exhaustion of the General Fund by around 2032. Eight years from now.

We cannot leave these indicative budgets as they are. More needs to be done, and we are looking at that.

The heart of the matter is about seeing the Good News of Jesus Christ shared and changing lives and communities for the better. Local congregations and presbyteries have the often-challenging work of carrying forward mission planning. In this season, mission must be the priority of the whole Church, in every place and at every level. We are working increasingly closely with the General Trustees, with CrossReach, and the Principal Clerk. All of us are in this together.

We are pleased to be continuing engagement on how we might support development in and through the new presbyteries, one of the identified priorities endorsed at the General Assembly 2023. This is in conjunction with the Principal Clerk and the Assembly Business Committee (ABC) who have responsibility for oversight of the presbytery restructuring process, communication with presbyteries in matters relating to the General Assembly, and oversight of procedures for presbyteries to report to the General Assembly. A member of ABC is part of our meetings. A General Trustee is too.

Much of our work as Assembly Trustees is about vision, direction, oversight. Some is more detailed. Among other business at our meetings these last few months we've noted how the management accounts that we see monthly become the year end accounts, and how comparing year-end figures with budget figures can make the picture look better than it is. For example, when investment values are up at the year-end that will make it look as if we are better off – but year-end investment values will sometimes be down. Year-end adjustments can serve to cloud the true operating result. One year-end adjustment for 2023 is that the year-end accounts will for the first time include an ‘investment property' element for the property in George Street. That is because, pending decisions in due course about its long-term future, almost 50% of the building is now leased out, or available for lease, and generating a new source of income.

The Seeds for Growth Committee are continuing their work of awarding grants and at our December meeting they brought to us, for our decision, recommendations for the first grants of £75,000 or above.

Giving to Grow's first year of operation was in 2023, the arrangements provide for it to be reviewed each year and, for General Assembly 2024, we've been considering some adjustments in the light of experience since it began.

During February, along with many others, we are preparing our report for the General Assembly in May. Look out for our webinar ahead of the General Assembly.