ABC meeting: The Canonical Bodies of the Archdiocese of Wellington

1. ABC meeting:The Canonical Bodies of the Archdiocese of Wellington July 29 2011 An Update Paul Bayliss, General Manager Archdiocese of Wellington

2. We, the Catholic People of the Archdiocese of Wellington, challenged to follow Christ, are called to proclaim the Kingdom of God by: celebrating God in our lives, sharing our living faith, growing in community, and working for justice and peace. Stewardship Shared mission

3. ADW Finances Supporting the mission...

4. Last year’s budget process For the Archdiocesan operations it was agreed that: • A deficit budget for the 2010-11 year was acceptable BUT was unacceptable on a three year projection basis • Past history suggested that • Expenditure savings would be found • CDF income would be higher • Bequests (budgeted for zero) would amount to approx $10,000 • Work would be undertaken by the Administration and Finance team to continually drive up revenue and control expenditure in order to overcome the large and rapidly rising projected deficits • Major strategic projects would be undertaken that released expenditure pressure

5. In the 2010-11 fiscal year… The Administration and Financial Services Leadership Team... Communicated to Archdiocesan management, staff and the wider Catholic community about the current and future financial pressures via.. • Directors meetings • Ongoing reviews of expenditure • Meetings of Canonical bodies • Administration and Finance ‘Parish Roadshow’ 2010 • Consultation with the Clergy Trust Fund

6. The 2010-11 fiscal year outcome… And what eventuated was.... ...Projected operating deficit of $120,000 Was reduced to: ...Operating deficit of $3,500

7. And then came the 2011-12 budget process… Once the 2010-11 work was taken into account the 2011-12 budget has a different look to it • Revenue and Expenditure matching on a departmental basis • Separate accounting for specific levies and funding groups, matching to actual expenditure and reported outside of the core Archdiocesan operational budget • Clearly identified specific reserves being drawn upon to cover core Archdiocesan operational deficits

8. ...which has clear funding of shared responsibilities… • NATIONAL COMMITTMENTS LEVY: • ALL PARISHES contribute a 9% percentage of total parish income less interest on CDF investments (‘Levy-able Income’). • LAY PASTORAL LEADER LEVY • ALL PARISHES contribute 7% of levy-able income. (approximately the figure proposed by Cardinal Williams, 2003) • SUPPORT OF BISHOPS • ALL PARISHES contribute 2% of levy-able Income towards the Bishops Fund. • SUPPORT OF PRIESTS • ALL PARISHES contribute 29% of levy-able income to the House Account/CTF Common Fund or if a religious order staffed parish - to that community.

9. ...and the 2011-12 Budget has been approved The Archdiocesan board of Administration recommended to the Archbishop that the budget for 2011-12 be accepted as a transition year • All departments will continue to focus on operating procedures and reviewing costs • The Archbishop and Directors continue the strategic review of revenue and expenditure

10. ADW & Parish Levy supported activities in the 2011-12 Budget Notes: 1 Prior to use of reserves 2 Indicates a levy adjustment may be necessary

11. Major Challenges Faced by ADW We shall overcome...

12. We face unquantifiable major challenges… • Ageing clergy and religious • Limit on number of Lay Pastoral Leaders (LPLs) that can be funded • Ongoing replacement of religious with lay staff • Increasing numbers of overseas priests and seminarians • The Archdiocesan Focus Group outcome and implementation • Centralised or localised services delivery model? • Will stewardship mean parishes want more or less from the Catholic Centre in terms of support and resources? • Impact of Canterbury Earthquake • Rising insurance costs and review of risk profile of assets (Archdiocese and Parishes) • Remedying earthquake prone parish buildings • School System • 10 year property plan challenges • Remedying earthquake prone schools

13. ...and have begun projects to address the challenges • Lobbied for new Immigration Policy • Archdiocesan Focus Group (Phoenix Project) • Parish Administration and Communications System (PACS) • Borgia Project and CCUA • School Sector Projects

14. Lobbied for a New Immigration Policy:What was it all about... • A critical national threat to the Church • Immigration policy was labour market oriented and precluded priests and religious becoming residents • Supportive Minister and Immigration Service • New policy now announced – in place in November • Will have a pathway to residency - requires bishop’s sponsorship • ADW policy now to be determined

15. Archdiocesan Focus Group:What is it all about... Process thus far: • Feb 15: Initial Scoping meeting with Phoenix Facilitation • March 3: First Meeting of Focus Group • March 29: Second Meeting of Focus Group • April: Pastoral Letter from Archbishop John • April-June: Feedback on Pastoral Letter • July/Aug: Focus group meetings (x3)

16. Project Foundations

17. Project Outputs

18. Archdiocesan Focus Group:What is it all about... • Work in progress: • Status of Pastoral Areas • Triggers for initiating change process • Steps for Pastoral Area engagement on change process • Communications Plan • Engagement with Pastoral Areas

19. Archdiocesan Focus Group:What is it all about... Cardinal Tom, speaking of the 1988 Synod said: “The outcome will not be any astounding revolution, of course. I have to be a realist like yourselves and accept that the most telling image of the Church is an untidy caravan struggling across the desert, not a regiment of infantry marching in perfect step across an immaculate parade ground. We are after all the People of God.” Cardinal Thomas Williams, Pastoral Letter on the Synod 88-89

20. Parish Administration and Communication System:The PACS Project (PACS Project) • Allows standardisation of parish systems across ministries, rolls, planned giving and financial accounting • Progress • NZ modules now part of core PACS software suite • Reports and GST/EFT modules have been adjusted • Undergone final testing by IT supplier • Familiarisation of support and parish staff underway • Standardised Chart of Accounts • Looking to release full package (database, planned giving and financial accounting) in one install

21. Borgia Project and Catholic Church Underwriting Agency (CCUA): The Ground is Moving (Borgia Project) • Lessons from Christchurch Earthquake • Risk Management • Disaster Recovery (DR) /Organisational Continuity Planning (OCP) • Adequate insurance/insurer • Recovery is far longer than expected • Update on insurance outlook – Schools and Parishes • Premiums • Excesses • Valuations • Reinsurance • Non-insurability

22. Borgia Project and Catholic Church Underwriting Agency (CCUA): The Ground is Moving • Borgia Project - Parishes • Stream A • Phase one - Data Collation • Phase two - Initial Evaluation Procedure • Phase three - Detailed Evaluation Procedure • Communication plan and processes • Stream B • Emergency preparedness programmes • review and strengthening • Stream C • Remediation programmes

23. Schools Sector: We are learning things • Operating arrangements are changing • Catholic Institute of Aotearoa New Zealand (TCI or The Catholic Institute) • The former Wellington Catholic Education Centre (WCEC) • The new Catholic Schools Education Services • Reformultion of Catholic Schools Board Limited • Restatement of ADW Financial Statements

24. Schools Sector: We are learning things • Funding school property projects • 10 yr plan • Compliance with building codes • New approach to management and reporting • Possible November road-show focus

25. THE END ....ALMOST

26. Questions