Last year, our income budget (£990,500) was less than our expenditure budget (£1,035,800). This was partly because our regular giving had been slowly decreasing over the previous 6 months, so I am delighted to tell you that due to increasing regular giving, and many generous one off gifts, we ended the year with total income of £1,037,200 (5% higher than expected!) – thank you all so much for your generous and faithful giving!

In terms of expenditure, in Spring 2019, the Vestry decided to invest a portion of our available reserves in addressing two specific needs, our paid pastoral care capacity and the staff salaries which are benchmarked against the teachers’ pay scales (responding to the Scottish Government’s decision to make a correction to these scales following many years of “below inflation” increases). As a result of these decisions, our expenditure was higher than the budget. Total expenditure, including transfers into the UK & World Mission Fund, was £1,077,600. So, we ended the year with a deficit of £40,400. [Please watch the full Finance Update on the website for more information about these decisions and our reserves].

Continuing with this strategy of investing available reserves, and taking account of our anticipated income, we have set the following budget for the 2019-20 year:

Income £ 1,036,200

Expenditure £ (1,129,670)

Deficit £ (93,470)

This deficit will significantly reduce our available reserves, but still leave some, which is important because it’s these available reserves which allow us to make the best financial decisions, as well as responding to opportunities without compromising our existing ministries.

It is the faithful giving of so many within our congregation over many years, together with the increasing value of our investments, that have allowed Vestry to make these bold decisions this year.

As we start this new financial year, please have a look at the budget in the new giving leaflet and prayerfully consider your giving to St Mungo’s and particularly whether you could start giving, if you don’t already support us financially.

Thank you so much!

Katherine Burnett – Finance Director