THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND

FINANCIAL STATEMENTS – PAGE 1

YEAR ENDED 31 DECEMBER 2000

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
FINANCIAL STATEMENTS 2000 PAGE 2

CONTENTS

PAGE

EXECUTIVE COMMITTEE AND OTHER INFORMATION 3

EXECUTIVE COMMITTEE REPORT 4

REPORT OF THE AUDITORS 5

ACCOUNTING POLICIES 6

GENERAL FUND REVENUE ACCOUNT 7

BALANCE SHEET 8

STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES 9

CASH FLOW STATEMENT 10

NOTES TO THE FINANCIAL STATEMENTS 11

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
EXECUTIVE COMMITTEE AND OTHER INFORMATION PAGE 3

CHAIRMAN - JF Rankin MEMBERS (ex officio) - The Archbishop of Armagh - The Archbishop of Dublin - GC Richards (Allocations Committee) - JRB Hewat (Investment Committee) - S Gamble (Property Committee) - DG Perrin (Stipends Committee) MEMBERS (elected) - The Bishop of Derry - Ven CT Pringle - Very Rev DR Chillingworth - Ven AET Harper - Mrs CH Thomson - RW Benson - HT Morrison - RH Kay

BANKERS - Bank of Ireland College Green, Dublin 2 - Bank of Ireland Baggot Street, Dublin 2 AUDITORS - PricewaterhouseCoopers George’s Quay, Dublin 2 OFFICERS - Chief Officer & Secretary RH Sherwood - Assistant Secretary JF Buttimore - Head of Investments PM Talbot - Head of Finance DC Reardon - Head of Legal & Property OR Plunkett - Head of General & Synod Services VF Beatty

OFFICE: Church of Ireland House, Church Avenue, Rathmines, Dublin 6.

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
EXECUTIVE COMMITTEE REPORT PAGE 4

In financial terms, the Representative Body did not escape the downturn in economic sentiment in 2000 as concerns about declining global growth rates, rising oil prices and high profile profit warnings produced negative equity returns in the major markets.

The Balance Sheet assets of the Representative Body, General Funds and Specific Trusts, increased by IR£18m during the year 2000, a modest increase reflecting poorer returns in the major investment markets compared to the previous two years and a strengthening of the Euro currency against sterling and the US$ towards the year end. This increase includes both realised and unrealised valuation gains in the financial markets.

Total income increased by circa IR£0.3m to IR£4.4m in 2000 (1999: IR£4.1m) while operating costs increased by IR£0.1m to IR£1.5m in the same period (1999: IR£1.4m). The increase in costs reflects costs of salaries and wages in the current market economy, increased library maintenance costs, the cost of new investment tracking and pricing systems in Church House and higher levels of committee expenses (offset by reduced pension funding costs after the latest actuarial revaluation).

Net income after meeting operating costs was again insufficient to meet increased financial allocations and commitments and a sum of IR£236,000 (1999 IR£306,000) was taken from reserves (which are maintained to smooth out the peaks and valleys in income and to protect against hardship and instability).

The re-emergence of wage and price inflation in the Republic, together with currency and interest rate uncertainty generally continued to give some cause for concern and to restrict prospects for undertaking any new or additional financial commitments.

Statement of Trustee’s Responsibilities

The Representative Body is required to prepare financial statements for each financial year which give a true and fair view of its state of affairs and of its financial activities for that period. In preparing those financial statements, the Representative Body, as a trustee, is required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and estimates that are reasonable and prudent;

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that it will continue in business.

As a trustee, the Representative Body is responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the organisation and to enable it to ensure that the financial statements comply with relevant legislation. It is also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JF Rankin
14 March 2001 Chairman, Executive Committee

Auditors’ Report

Blank page for photocopy

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
ACCOUNTING POLICIES PAGE 6

The significant accounting policies adopted by the Representative Church Body are as follows:

(i) Basis of preparation

The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland, which are those standards published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board.

(ii) Historical cost convention

The financial statements are prepared under the historical cost convention except that investments are stated at valuation.

(iii) Investments

Investments are stated in the balance sheet at year end valuation.

Quoted securities are valued at latest available trade price or middle market price ruling on the balance sheet date. Bond valuations at year end include accrued interest from last gale date. Unquoted securities are valued by reference to the market value of the underlying assets.

Loans are stated at book cost at the balance sheet date.

(iv) Income

Income includes all dividends receivable and interest received during the financial year plus the related tax credits adjusted, in the case of the General Fund, to reflect bought and sold interest on bond transactions in the accounting period.

(v) Foreign currencies

Balances in foreign currencies are translated into Irish pounds at the rates of exchange ruling at the balance sheet date. Transactions are translated at year end rate, IR£1 = £0.7924 (1999 IR£1 = £0.7894) or the IR£ prevailing rate where converted during the year.

(vi) Tangible fixed assets and depreciation

Land is stated at cost. Other fixed assets are stated at cost less accumulated depreciation and are depreciated over the period of their expected useful economic lives. Depreciation is calculated using the following annual rates:

Freehold Buildings 2%
Office Equipment 12%
Office Furniture 8%

(vii) Pensions

Staff – Current

The pension entitlements of employees are secured by contributions to a defined benefits scheme administered by Irish Pensions Trust. An actuarial valuation is carried out at intervals of not more than three years. At the last actuarial review on 1 January 1999, the Actuary advised that the assets secured to date, based on the long term funding rate and the controlled funding methods and assumptions, are adequate to cover accrued benefits and deferred pensions.

Staff – Retired

Pensions paid to retired staff who were not eligible to participate in the scheme administered by Irish Pensions Trust are paid from income on an annual basis.

Clergy

The Fund is established under Chapter XIV of the Constitution of the Church of Ireland as amended from time to time by the General Synod. The Representative Church Body is the Trustee of the Fund which is administered by the Church of Ireland Pensions Board in accordance with the provisions of Chapter XIV.

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
GENERAL FUND REVENUE ACCOUNT
YEAR ENDED 31 DECEMBER 2000 PAGE 7

			2000	1999	2000	1999
	Notes		IR£’000	IR£’000	€’000	€’000
INCOME
Investments			3,749	3,459	4,760	4,392
Property and Loans			149	140	189	178
Deposit Interest			274	282	348	358
Sundries			81	81	103	103
Interest on Reserves			126	162	160	206
			______	______	______	______
			4,379	4,124	5,560	5,237
			______	______	______	______
EXPENDITURE
Operating Expenses		10	1,107	1,033	1,406	1,312
Professional Fees (including investment
management costs)			221	194	281	246
Audit Fees (including Unit Trusts)			42	37	53	47
Pension Liabilities			138	140	175	178
			______	______	______	______
			1,508	1,404	1,915	1,783
			______	______	______	______
Surplus of Income over Expenditure			2,871	2,720	3,645	3,454
Allocations
- Recommended		11	(3,221)	(2,971)	(4,089)	(3,772)
- Prior Year Unexpended			114	36	144	46
			______	______	______	______
Deficit after Allocations			(236)	(215)	(300)	(272)
Transfers
- from Allocations Reserve			241	236	306	299
- from/(to) Building Development Reserve			67	(11)	88	(14)
- (to) Staff Pensions Reserve			(5)	(10)	(6)	(13)
- (to) General Funds			(67)	-	(88)	-
			______	______	______	______
			-	-	-	-
			______	______	______	______

Signed: JF Rankin
DG Perrin

Date: 14 March 2001

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
BALANCE SHEET
31 DECEMBER 2000 PAGE 8

			2000	1999	2000	1999
	Notes		IR£’000	IR£’000	€’000	€’000
EMPLOYMENT OF FUNDS
CURRENT ASSETS
Debtors			941	1,406	1,195	1,785
Cash on Short Term Deposit			12,464	11,382	15,826	14,452
Bank Balances			1,579	830	2,005	1,054
			______	______	______	______
			14,984	13,618	19,026	17,291
			______	______	______	______
CURRENT LIABILITIES
Current Account Income Balances		2	4,135	4,154	5,251	5,275
Recommended Allocations		11	3,221	2,971	4,089	3,772
Creditors			422	614	536	780
			______	______	______	______
			7,778	7,739	9,876	9,827
			______	______	______	______
NET CURRENT ASSETS			7,206	5,879	9,150	7,464
INVESTMENTS
Tangible Fixed Assets		3	1,417	1,464	1,799	1,859
Loans			1,041	958	1,322	1,216
General Funds		4	144,006	142,130	182,850	180,468
Specific Trusts		5	249,287	234,739	316,529	298,057
			______	______	______	______
			402,957	385,170	511,650	489,064
			______	______	______	______
FUNDS EMPLOYED
General Funds		6	143,236	141,341	181,872	179,466
General Reserves		7	3,798	3,824	4,822	4,855
			______	______	______	______
			147,034	145,165	186,694	184,321
Pensions and Related Funds		8	101,956	99,515	129,459	126,358
Other Trust Funds		9	153,967	140,490	195,497	178,385
			______	______	______	______
			402,957	385,170	511,650	489,064
			______	______	______	______

Signed: JF Rankin
DG Perrin

Date: 14 March 2001

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES and
reconciliation of movement in general funds employed
YEAR ENDED 31 DECEMBER 2000 PAGE 9

	2000	1999	2000	1999
	IR£’000	IR£’000	€’000	€’000
Surplus from General Revenue	2,871	2,720	3,645	3,454
Currency Translation Movement	(372)	10,075	(472)	12,792
Unrealised (Deficit)/Surplus on revaluation of
Investments and Property	(10,750)	(6,580)	(13,650)	(8,355)
Surplus on Investment Sales	12,959	19,084	16,455	24,232
	______	______	______	______
Total Recognised Gains and Losses	4,708	25,299	5,978	32,123
Recommended Allocations	(3,221)	(2,971)	(4,090)	(3,773)
Prior year unexpended allocations	114	36	145	46
Capital changes and other movements	268	584	340	742
	______	______	______	______
Increase in Funds Employed	1,869	22,948	2,373	29,138
Balance 1 January	145,165	122,217	184,321	155,183
	______	______	______	______
Balance 31 December	147,034	145,165	186,694	184,321
	______	______	______	______

Signed: JF Rankin
DG Perrin

Date: 14 March 2001

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER 2000 PAGE 10

			2000	1999	2000	1999
	Notes		IR£’000	IR£’000	€’000	€’000
NET CASH FLOW FROM
OPERATING ACTIVITIES		12	3,093	3,311	3,927	4,204
			______	______	______	______
ALLOCATIONS OF INCOME PAID			(2,857)	(2,578)	(3,628)	(3,273)
			______	______	______	______
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENTS
Purchase of Investments			(80,834)	(96,361)	(102,638)	(122,353)
Sale of Investments			83,019	94,503	105,412	119,994
Advances of Glebe, Miscellaneous
and Car Loans			(334)	(87)	(424)	(111)
Repayment of Glebe, Miscellaneous
and Car Loans			250	74	318	94
Purchase of fixed assets			(19)	(994)	(25)	(1,262)
Payments (from)/to Reserves			267	(15)	339	(19)
			______	______	______	______
Net Cash flow from/(to) capital
expenditure and financial investments			2,349	(2,880)	2,982	(3,657)
			______	______	______	______
FINANCING
Net Cash Inflow to Specific Trusts			1,468	2,162	1,864	2,745
			______	______	______	______
Net Cash flow from financing			1,468	2,162	1,864	2,745
			______	______	______	______
INCREASE/(DECREASE) IN CASH		13	4,053	15	5,145	19
			______	______	______	______

Signed: JF Rankin
DG Perrin

Date: 14 March 2001

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS PAGE 11

1. SPECIFIC TRUSTS FUND INCOME AND COVENANTS

	2000	1999
	IR£’000	IR£’000
INCOME
Investments	6,748	6,453
Deposit Interest	540	436
Underwriting Commission	2	2
	_______	_______
	7,290	6,891
COVENANTS
Aid Donations	-	425
Income Tax Refund on
Gift Aid Donations	1,730	1,716
	_______	_______
	9,020	9,032
Less Administration Expenses	(486)	(497)
	_______	_______
	8,534	8,535
Applied or paid to Specific Trusts or parishes	(8,534)	(8,535)
	_______	_______

A portion of the specific trusts income is applied to the payment of stipends, allowances and pensions which in total amounted to IR£13.197m in the year ended 31 December 2000 (1999, IR£12.793m). The balance of the cost of remuneration and pensions is funded by transfers from dioceses and from General Synod allocations.

2. CURRENT ACCOUNT INCOME BALANCES

	2000	1999
	IR£’000	IR£’000
Diocesan Stipend & General Funds	2,677	2,811
Parochial Endowments	26	134
Miscellaneous Diocesan Trusts	139	136
General Synod Trusts	73	71
Other Trust Income & Suspense Balances	1,160	944
Clergy Pensions & Related Funds	60	58
	_______	_______
	4,135	4,154
	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 12

3. TANGIBLE FIXED ASSETS

	Premises	Office Furniture	Office Equipment	Total
	IR£’000	IR£’000	IR£’000	IR£’000
Cost
At beginning of year	1,240	192	154	1,586
Additions	12	-	8	20
	_______	_______	_______	_______
At end of year	1,252	192	162	1,606
	_______	_______	_______	_______
Depreciation
At beginning of year	21	15	86	122
Charge for year	21	16	30	67
	_______	_______	_______	_______
At end of year	42	31	116	189
	_______	_______	_______	_______
Net book value
At beginning of year	1,219	177	68	1,464
At end of year	1,210	161	46	1,417
	_______	_______	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 13

4. GENERAL FUNDS – ANALYSIS OF FUND ASSETS

	2000	1999
Investments at Valuation	IR£’000	IR£’000
Ireland
Equities - Financial	9,958	9,120
Equities - Commercial (includes convertibles)	7,862	6,505
Trustee	4,124	4,254
Preference	492	487
Bonds	343	-
United Kingdom
Equities	66,270	68,642
Trustee	14,880	9,219
Unit Trusts	9,853	11,353
Bonds	965	3,679
Preference	-	1,592
Convertibles	-	39
North America
Bonds	-	289
Unit Trusts	235	-
Europe
Equities	21,257	20,403
Bonds	-	2,229
Unit Trusts	1,523	217
Japan
Bonds	-	137
	_______	_______
	137,762	138,165
Other Assets
Cash	3,938	1,716
General Reserves - Investments	2,306	2,249
	_______	_______
	144,006	142,130
	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 14

5. SPECIFIC TRUSTS – ANALYSIS OF FUND ASSETS

	2000	1999
Investments at Valuation	IR£’000	IR£’000
Ireland
Equities	35,979	43,972
Unit Trusts	4,472	5,812
Trustee	2,715	2,565
Preference	6,972	709
Bonds	658	632
Convertibles	2,468	26
United Kingdom
Equities	40,150	40,549
Unit Trusts	31,927	35,644
Trustee	7,701	6,581
Preference	1,068	1,860
Bonds	617	1,168
Deposits	-	317
Convertibles	36	108
North America
Equities	6,136	4,336
Unit Trusts	1,807	2,787
Bonds	-	436
Deposits	-	-
Europe
Equities	7,237	5,429
Unit Trusts	6,158	5,192
Bonds	-	1,112
Pacific Basin
Equities	885	809
Unit Trusts	-	139
Australia
Equities	621	718
Japan
Unit Trusts	-	2,742
Equities	1,281	233
	_______	_______
	158,888	163,876
Other Assets
Cash	2,631	1,882
RB Unit Trust	16,198	14,724
RB General Unit Trusts	71,570	54,257
	_______	_______
	249,287	234,739
	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 15

6. GENERAL FUNDS

	Balance at 1.1.00	Currency Translation Movement	Capital Changes/ Movements	Surplus on Investment Sales	Revaluation Movement	Balance at 31.12.00
	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000
Realised Profits on Investment Sales	102,474	(285)	67	12,859	-	115,115
Unrealised Surplus on Revaluation of Investments and Property	38,867	(85)	-	-	(10,661)	28,121
	_______	_______	_______	_______	_______	_______
	141,341	(370)	67	12,859	(10,661)	143,236
	_______	_______	_______	_______	_______	_______

7. GENERAL RESERVES

	Balance at 1.1.00	Currency Translation Movement	Capital Changes/ Movements	Surplus on Investment Sales	Revaluation Movement	Balance at 31.12.00
	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000
Allocations Reserve	2,300	(2)	60	100	(92)	2,366
Building Development Reserve	1,366	-	(67)	-	-	1,299
Staff Pensions Reserve	158	-	(28)	-	3	133
	_______	_______	_______	_______	_______	_______
	3,824	(2)	(35)	100	(89)	3,798
	_______	_______	_______	_______	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 16

8. PENSIONS AND RELATED FUNDS

	Balance at 1.1.00	Currency Translation Movement	Capital Changes/ Movements	Surplus on Investment Sales	Revaluation Movement	Balance at 31.12.00
	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000
Clergy Pensions Fund	96,940	(210)	469	6,664	(4,683)	99,180
Widows and Orphans Funds	1,477	(1)	35	59	108	1,678
Supplemental Fund	807	(3)	-	10	(6)	808
Clergy Pensions Fund (AVC Scheme)	291	(1)	-	-	-	290
	_______	_______	_______	_______	_______	_______
	99,515	(215)	504	6,733	(4,581)	101,956
	_______	_______	_______	_______	_______	_______

The Church of Ireland Pensions Board report includes more detailed financial statements covering a substantial portion of the above funds which are administered by the Board in accordance with the provisions of Chapters XIV and XV of the Constitution.

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 17

9. OTHER TRUST FUNDS

	Balance at 1.1.00	Currency Translation Movement	Capital Changes/ Movements	Surplus on Investment Sales	Revaluation Movement	Balance at 31.12.00
	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000	IR£’000
Parochial and Glebe Sales	82,925	(96)	4,926	7,052	(1,594)	93,213
Diocesan Stipend and General Funds	19,790	(25)	86	465	373	20,689
Diocesan Miscellaneous Trusts	7,892	(10)	(148)	690	(128)	8,296
Diocesan Episcopal Funds	4,187	(5)	-	154	50	4,386
Less: Diocesan Car Loans	(868)	2	17	-	-	(849)
	_______	_______	_______	_______	_______	_______
	113,926	(134)	4,881	8,361	(1,299)	125,735
Sundry Trusts	18,483	(29)	59	1,475	(466)	19,522
General Synod Funds	6,954	(6)	85	466	32	7,531
Church of Ireland Auxiliary Funds	1,127	-	-	10	42	1,179
	_______	_______	_______	_______	_______	_______
	140,490	(169)	5,025	10,312	(1,691)	153,967
	_______	_______	_______	_______	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 18

10. OPERATING EXPENSES

	2000	1999
	IR£’000	IR£’000
General Administration
Salaries and Wages	931	831
PRSI	95	83
Pension Funding	132	209
Other Staff Costs	53	47
Office Supplies	38	32
Light, Heat and Power	22	21
Postage and Telephones	38	40
Maintenance and Repairs	6	20
Insurance, Rates and Taxes	25	22
Banking and Other Charges	21	18
Depreciation	67	71
	_______	_______
	1,428	1,394
Less Costs Recovered
Specific Trusts	(215)	(232)
Legal Fees	(51)	(50)
Other Charges	(271)	(265)
	_______	_______
	891	847
Library	115	95
Central Committees	96	88
Episcopal Electors’ Expenses	5	3
	_______	_______
	1,107	1,033
	_______	_______

11. RECOMMENDED ALLOCATIONS

	2000	1999
	IR£’000	IR£’000
Maintenance of the Stipendiary Ministry	961	880
Retired Clergy and Surviving Spouses	893	822
Training of Ordinands	665	593
General Synod Activities	627	602
Miscellaneous Financing	75	74
	_______	_______
	3,221	2,971
	_______	_______

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED PAGE 19

12. CASH FLOW RECONCILIATION

The Cash Flow Statement has been prepared in accordance with Financial Reporting Standard No 1 as required by the Accounting Standards Board and reflects the cash flows of the Representative Church Body General Funds and Reserves. Cash flows relating to Specific Trusts and Clergy Pension Funds are included to the extent that they are currently reflected in bank accounts or monetary asset and liability balances of the Representative Church Body at the financial year end.

Reconciliation of surplus of income over expenditure to net cash inflow from operating activities:

	2000	1999
	IR£’000	IR£’000
Surplus of income over expenditure	2,871	2,720
Change in other debtors	313	675
Change in creditors	(158)	(46)
Amortisation of fixed assets	67	71
Effect of foreign exchange rate changes	-	(109)
	_______	_______
Net Cash flow from operating activities	3,093	3,311
	_______	_______

13. ANALYSIS OF CHANGES IN CASH DURING THE YEAR

	2000	1999
	IR£’000	IR£’000
Balance at 1 January	13,928	13,913
Net cash inflow/(outflow)	4,078	(1,035)
Effect of foreign exchange rate changes	(25)	1,050
	_______	_______
Balance at 31 December	17,981	13,928
	_______	_______

14. ANALYSIS OF THE BALANCES OF CASH AS SHOWN IN THE BALANCE SHEET

	2000	1999
	IR£’000	IR£’000
Cash on short term deposit	12,464	11,382
Due from bankers	1,579	830
Cash held by Investment Managers	3,938	1,716
	_______	_______
	17,981	13,928
	_______	_______