FINANCE, AUDIT & RISK COMMITTEE
David Slinn, Chair
The Association’s surplus of $2.5m is made up of an operating surplus of $1.1m and a surplus from Designated Funds of $1.4m. The surplus from operations is due to JobKeeper payments from the government of $999k and a reduction in planned programs and expenses caused by COVID-19.
During 2020, we have continued to focus on building up resources for the Gen1K vision by further consolidating funds with the aim of efficiency and mobilising resources for strategic initiatives. Some further funds have become available from closed churches and a significant strategic purchase has been made in Southern Sydney for use by Transform Southern Sydney (TSS) as a regional hub for local churches in Southern Sydney.
As Gen1K funds increase we are working on effective long-term investment strategies that are aligned to the Gen1K vision and have now invested $10m in the newly formed Baptist Impact Fund to support investment into ministry related activities.
Below is a summary of our 2020 financial results:-
The figures for Other ministries include Kiah Ridge and our Regional Ministries (Greater West for Christ, Riverina District Baptist Association, H100 and TSS. Other ministries is above budget due to proceeds from the sale of closed churches in the Riverina Region and also due to the Kiah Ridge operations. Despite the heavy downturn in the business caused by COVID-19, Kiah Ridge is above budget due to JobKeeper grants and insurance funds received due to bushfires in the previous year. This is a wonderful praise point for what was a very difficult year.
The surplus from Designated Funds is above budget due to proceeds from the sale of properties of closed churches which are used to support the 1GENK vision.
The Operating budget for 2021 is more than $1.9m in excess of the Church partnership support budget of $1.5m with an overall operating deficit of $158k. We continue to work diligently so that the operating budget can be balanced over the long term and as the Association requires increasing resources to support churches in an ever-increasing complex environment. Fortunately, this projected deficit can be funded from the 2020 surplus.
The Association has also embarked on an ambitious plan to redevelop the God Space material including multimedia formats at an overall budget of $1m. Substantial financial support has been raised but further financial support is sought from donors to meet this important need of bringing Christian education to school children both in NSW and further afield. This is a self-financing project outside the budget.
Another exciting development is significant funding that the Association has been able to secure to further support the GEN1K vision as this continues to build momentum and opportunities to plant and revitalise churches to achieve our goal of 1,000 healthy churches in NSW & ACT.