, BLACIBURFI OCESAn BOARD OF EDVCCITiori VISION ILALTI IY CIIUI4LI IrrJ TI£AN)trFOItMING LOMMUNII IES The Blackburn Diocesan Board of Education Trustees, annual report and financial statements Company limited by guarantee (no 557954) Registered charity (no 1020101) 31 December 2022 The Blackbum Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 Contents VISION STATEMENT.......................................................................................,,,..,............................ LEGAL OBJECTS........................................................... STRATEGIC REPORT..................... STRATEGIC AIMS AND OBJECTIVES FOR THE YEAR.. ...................................-.................................... ACTIVITIES AND PERFORMANCE................................................................ FINANCE REVIEW.................... .12 PRINCIPLE RISKS AND UNCERTAINTIES... .13 STRUCTURE GOVERNANCE AND MANAGEMENT..........................................................................14 TRUSTEES RESPONSIBILITIES .15 STATEMENT OF DISCLOSURE TO THE AUDITORS.................................................-...................................15 APPOINTMENT OF AUDITOR....................... .15 ADMINISTRATIVE DETAIL................. .16 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF EDUCATION........................................................................................... .18 STATEMENT OF FINANCIALACTIVITIES....................... .21 INCOMEAND EXPENDITURE ACCOUNT..................................................................,,...,................22 BALANCE SHEET.................................................................. .23 CASH FLOWSTATEMENT..............................................................................................................24 NOTES TOTHE FINANCIALSTATEMENTS.....................................................................................25 The Blackburn Dlocesan Board of Education Annual Report and Financlal Slalements For the ear ended 31 December 2022 VISION STATEMENT Serve Chrlst. Share th& Gospel. Support, Equip and Educate Hgalthy Church•s fransformlng Communltles LEGAL OBJECTS To promote or assist in the promotion of education in the Diocese of Blackburn I'the ditsTrse°I being education which is consistent with the faith and practice ol the Church of England. To promote or ass181 in the promotion of religiou5 educa￿'on and religious worship in schools in the ditscese. To promote or assist in the promotion of church 5choo15 In the diocese and lo advise the governors of such schools, and Iruslees of church educational endowments and any other body or person concemed on any matter affecting church schools in the di0￿se,. to promote co-operation between ils Board of Management I'lhe board,) and bodies or ptrrstsns concerned In any respect with edu¢31ion in the diocese. To discharge within the diocese the functions assigned lo Diocesan Boards of Education by $e¢tion 3 10 8 and 11 of the Diotssan Boards of Education Measure 1991 or by any amending To discharge within the di0￿Se such other lunclions relating to the furtherance oif church education as may be assigned lo the Board by tho dio¢esan synod, tslher than funetions relating lo d)urch schools or church educatitsnal endowments. To do all Such thing8 88 are in¢idenl81 or ¢onducive lo the attainment ol the aforesaid objects, including acceptance ol the trusteeship of any trusts and the invest￿ent of any moneys not immediately required foi ils purptssè in or upon such investments securities as the Bc>ard may think STRATEGIC REPORT STRATEG5C AIMS AND OBJECTIVES FOR THE YEAR The support of Church ol England school8 in all areas of their 8¢tivifjès. In p8rtieul8r'. Developmonl and delivery of religious education and collective worship Protection of the Church ol England's interests in 8cademy conversions in Blackbum Diocese M81nlenance ol church school buildings belonging to twslees of Church of England Schools Protection of the interests of the trustees of Church of England Schools The development of youth and children's work in Parishes and Schools across the Diocese of Blackburn. The support and development of Christian Spirituality in secular inslilulions of higher and further educallon. Th8 provision (>f Chaplaincy 8UPPOrt to ehurch colleges and church-based Unive￿ItieS. The Blackburn Diocesan Board of Educatlon Annual Report and Financial Statements For the ear ended 31 December 2022 Publlc Benefit statement The Board exists under Ihe Diocgsan Board of Education Measu￿(2021). The Measure sets out the core purpose of the Board of Education. which is lo piornole or assist In tho promotion of education in the d5ocese that is consistent with the faith and pi8clice of the Church of England.. piomole or assist in tho promolson ol religious education and religious worship in schools in the diocese., promote or assist in the promotion of church schools in the diocese.. prornole co-operation between itsèlf and other person8 concemed with education in the diocese. In addition, the Board of Education support youth and children's work across church in the dioces8 The public benefit of our work is seen in the support and flourishing of church schools Ihal provide education for all within a Christian ethos. Blackbum Oiocesan Board of Education IBDBEI supports the promotion of Christian f811h within universities and other educational institutions and also supports schools to engage in their communities and lo build projects that create improve and unify the local community. Our support for schools 8180 ensures the provision of buildings whlch can be used by parishes and outside bodies for the benefit ol all. The trustees have referred lo Charity Commission guidance on publ￿ benefit and consider the entity is compliant. Our support foryouth and Children's Work acr055 the Diocese touche5 the lives of thousands of people. m8ny of whom are not regular church atlgnders and supports churches in their work with the children and young people of local communilles. ACTIVITIES AND PERFORMANCE Main Achi8vements of the Year Objectives sel until 2024 for the Board of Education.. Prayor for the work of the Board Oblectivgs DBE Actions Enctsuraging a 'pray first eullure, at diocesan and parish level to uphold children and young people and the specific ministries working with them Writing prayers for the young to be used in intercessions, services and events Prayer has become more visible and intentional al rnany events and 50 meetings and training sessions start and end with prayer. Also, during events such as the Children's Ministry Conference, ¢8¢h keynote Speaker is prayed with before they begin to present in addition lo other limes trf prayer throughout the day. Encourage dedicalEd lime and energy lo the pursuit of hoaring God's heart and waiting on Him Encouraging prayer sponsors in parishes where congregation members pray directly lor Indlvidu81 children and eo oungLEle Equipping young people with the confidence lo pray Prayer continues tts be a strong feature In mariy of our resources, with examples ofwritten prayers being provided a5 well as suggestions for how children be encouraged to pray themselves. Resources for children which help churche8 to engage in Thy Kingdom Come were once again shared via our normal communication ¢hannels. A key message in 811 conversations and leaming eornmunily training around growing and start youth ministry is to grow a culture of praying foi and with young people in parishes, and Ihal this is the 11151 action that a church should take. The Blackburn Dloceyan Board of Education Annual Report and Financial Slalements For the ear ended 31 December 2022 Chlldrèn and Youth Overall objectives To see growth o111-17-year-olds (worshipping community statistlC51 of 1030 by 2026 To see 25% growth in n8w disoiples between the ages of 5-11 years (worshipping community statlsti¢sl To see 50°/u increase in toddlei groups that share the gospel To see double the nurmber of boys in worshipping communities Key Objectlves to ba achieved by Dec 2024 Making Dlsclples We will support the DBF making disciples team to resource and equip local churches 10.. Actions Make more Sunday servi¢tss childlyoulh- friendly Following the lifting of COVID-19 restrictions, officers had opportunity to meet with the rllajority of clergy in the Diocese in Spring 2022 al the Clergy Study Days. This helped lo clear the backlog of outstanding visits and by the end of the year, offi¢ers had resumed meeting with clergy new to the dioTrse and all had been introduced to h(>w the 8oaid of Education can support them in thèir ministry with children, youth and schools. The Children and Youth Ministry Self-Assessmenl Tool (replacing the Child Friendly Church Award) was launched this year. This is a queslionnaire that has bèèn designed for ¢hurches to use in order to review their curreril practices and highlight potential areas lor develtspment. New Cleigy visits are back up and running and al the lime of writing all dergy due lo be met in 2022 have been inlroduoed to the work and ministry of the Board of Education. LauTTrchpad and Leaming communlty continue lo challenge and equip clergy and youth teams about not only launching youth ministry but also how to make Sunday services more accessible foi leenogers. Improve prep8ralion 8nd follow-up for confirmation, retaining ¢onfirm81ion candidates as part of the church's worshipping comrnunity Having taken the time to res@8r¢h preparation materials many clergy and parish piepaialion le8ders are confident with what they are leading and the majority are significantly focused on ¢gnlirfflee8 growing as disciples of Jesus. The biggest are8 of support sought in ihis area is around how and what to do lo follow up confirmations, which ha5 led to sev&ral Conversations about the parish ctsntexl and how they can slart lo grow youth ministry following ¢onfiimation. Equip 50 parishes to Set up small youth groups that develop faith Learning Community continues lo support parishes in renewing,1aunching and e8lablishing youth ministry both following Launchpad engagement and thtsse whc> have connected with the yOLJth team independently. The 2022123 cohort ha5 been accompanied by a Lancaster focused Learnlng Comrnunity following Launchpad taking place in the Autumn. Additionally, October 2022 saw the first 'Youth Leader Conference, run. This both offered equipping for all youth le8ders in the diocese, and tsffered specific sessions for the 2022123 learnin communil cohort. The Blackburn Diocesan Board of Education Annual Report and Financial Slalements For the ear ended 31 December 2022 Support parishes in providing events and experiences that encourage children and young people in theii faith In April, office15 SUPPOrted a trial rnid-week CPAS School Venture Camp for Chorley Schools and their linked chuiche5. Thi5 led lo a wrillen proposal document to explore whether School Venture Residenlials can be promoted further as a tool lor parishes and schools to encourage children in their faith. This continues to be explored with CPAS. In July. offi¢er$ organi8ed and ran activities for children in the Churches Together fflarquee at the Royal Lancashire Show which were themed around the Christian response lo climate change. Although this wasn't something happenin9 directly al Parish level, the ideas and esource$ used al the Lancashire Show have since been used by parishes for their own events. 2022 saw Walsingham Youth Pilgrimage return in the summEr, a5 well as Salelliles, Limitless Feslival and DTI launching forlhe first lime following Soul Survivorfini5hillg In 2019 and a few years of cancellation due to covid. This gave us opportunity lo signpost leaders to these events, as well as 50tlle others, and to engage with them about theii 8XP8riences through our social medla channels. March 2022 also saw Abide.. The Gathering laking pla¢e at Archbishop Ternple School. It was fantastic to see 105 young p80ple plus their leaders coming together lo worship, explore living out their faith in 2022 and having 108ds of fun forlhe first lirne in a good few years. This wa5 also a sp8oe when we saw the impact ol the Leaming Cornmunily work with a number ()f new groups comin9 10 thg event 01 the event being used as a take off point for new church youth groups. Launching significantly more digital content to protnote faith development for children and young people, lo train leaders and promote church 8venls and a¢livilies. This will ineludè,. Youtube conlenl Podc851s Social medi8 Inleraclive resources Al the beginning of the year, a new podcast was rèleased lor children aged 3-7 years called Fo51ow th8 Son, which eneourages children to get into good habits of starting and ending Ihe day with God. An accompanying mailing has been cre81ed alongside this Podcast. cont8ining additional activities which link in with each episode. Later in 2022, seiies 3 of our popular Bible study and discus510ri podcast for prirnary aged children, Bible Podlets. was developed and released in October. Both of these iesources have attracted significant attention, not just in the Diocese of Blackburn, bul also globally, and have attracted around 50k listens to date. 30 pr8yer activity posts linking in wlth the National Toddler Group Month of Prayer were posted on the Board of Education's Social Media Accounts in June which again received excellent engagement. Thes8 were collated into downloadable booklet for people to be ablo lo access as a r8SOLJrce afterwards via the Resources Area ol the Board of Education website. The 'showcase' video featuring St Thomas, Pr85cho was rel@ased early in 2022 and a further show¢ase video featuring the Children's Sou1 Choir at Buckshaw Village Church was recorded and released in December. More of these 'How to, showcase videos are p18nned for 2023. Youth Work Slate of Mind returned in the autumn term for new s&1ie8 of the podcast. This series is being broadcast live on Youtube, as well as an audits version in the week lo follow. Youth Work State of Mind Instagram does well with showing our work with yoylh leaders and young peoplè. The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 'This is Abide. platforms have continued to grow consistently throughout 2021. ML5ch of thi5 was footage taken Irom the event as well as specific'llln features. that the team created. The difficuSly in recruiting a content creator in the summer meant this progress stalled in the ALJlumn. 11 has been interesting how each plallorm, even with similar content has 8 Stumbly different angle. This is particular clear when comparing the audience reach of Instagram and TikTok. Training vlde05 have been added to the Tr8in, Equip, Inspire youtube following se5510ns run as part of the learning oornrllunity. Produce more paiish rèsources for work with children and young people The suite of childr8n's work iesources on the website has grown to include materfals whieh highllght how Christmas is Gelebr8led by Chrisli8ns 8r(>uDd the world, linking In with our EDJ 5tl8tegy, plu5 new Lent and Easter resources. The Weekfyf@ Lectionary Resoui¢e oonlinues lo be well Used by our parishes. Due lo challenges in finding Guest Writers. some of this work has returned to being written i house, howevor somg work ¢onlinues lo be oulsourGèd where possible. The Weekly@ Summer resouTce, 'A Messy Starting Point, was pioduced, with six sessions exploring how we can connect with God during the me55y limes in our life. Officers also connecled with the wider diocesan team lo create a page of downloadable resources to help lo introduce the concepl of the Vine cornrnunily lo children and families by exploring John 15. Pick N Mix resources have continued lo be updated aT)d relaunched in 'app st￿e format, and worf( on will continue with this pro￿$$ in 2023. Create new or renewed toddler groups that share the gospel as part of their work A training session was offered for those needing help with their Toddler Group Ministry, however this did not go ahead due to not enough uptake. Several churches received 1..1 support and guidance regarding starling up and developing their toddler groups. Toddler Group Ministry was references in other training that was delivered over the course of the year where appropriate. Although, not In a local context, in reeognition of the work that the children's adviser has been involved in for Under 5s, she was invited by C8re for the Family lo deliver a workshop al Ihe Playtime Nation81 Conlerenee which was held at the All Nations Centre in Cardiff in September 2022. Engage with boy fri8ndty ministry A trainTng session was offered for those needing help with engaging with boy friendly Ministry, however this did not go ahead due to not enough uptake. This topic is referenced regularty during other general training. acknowledging that boys spiritual preferen¢es may look difleienl to girfs and sh81ing infomation on ideas for more 8clwe forms of children's tninistry. Building on the Iraclion KICK found with primary schools following the Headleacher conference we have 50ughl to connect local churches where KICK are coaching in schools so that conversations rnight begin in Ihose parishes to see il there was opportunities lo see this grow inlo minist in the life of Ihe church. Plannin lor Abide in Th9 Blackbum Diocesan Board of Education Annual Repoil and Financial Statements For the ear ellded 31 December 2022 2023 the team contacted both Ambassadors Football and KICK in the hope thalthey might provide coaching and run the active and foolb311 spaces al the event, giving Ih8tn a showcase opportunity foi local youlh leade15 and clergy. Being Wjtnesses We will support the DBF being witnesse5 team lo resource and e local churches lo.. Plant 50 local congregations which reach out lo families and young people Start 50 new childfyoulh-frieF)dly worshippin9 communities lor congregalionsl including services in school Officers connect with the Being Wllnesses team as necessary and planting new congregations work continues lo be ongoing as and when support is sought. Child and Youth Friendly Congregation8 work 18 ongoing Develop 50 new sportslaclive ministry activities that meet regularly Initiatives which help churches to grow and develop sportslactive rninistry are signposted to as and when support 15 50ught. Planting congregations work ongoing support is sought. KICK involved in Abide 2023 and supporting them in making connection8 with local churches where they are delivering in their local primary school. Supported the Youth Church at Sl Christophers, High School. as and when Growlng Leaders Support the DBF vocations team to commission 300 leaders and helpers ol 8118ges Iwilh at least 30Q/e under 25 years old) to sharo the Gospel with children and voung people. We will do this by.. Gieating a culture of vocational discemmenl so that many more can hear a call lo work with the young IDOVI The 'Step by Slep, Children's Ministry Conference this year was a great success and despite the pandemic, only saw a 51ighl drop in attendance. Online engagement was offered a5 well as face-10-fa￿, and although uptake for this was quit8 low, il facilitated some people's attendance who would otherwise, not have been able lo participate. Developing variod training programm8s for those new to this work or in need of refreshment, including basic training and more in-depth training as part of lay leadership development IGhildrenNouth TeartVDoV) The Children's Adviser was invofv8d in the M.'Power Iraining program. delivering sesslons on 'And then came Chri5ttnas' and 'Reaching the Next Generation, for those seeking lo be￿me Urban Evangelists. Despite the Children's Work Elective of the ALM course not havlng enough participants to run, the All Age Worship sessitsn for the Worship Elective of the ALM course was delivered which the participants thoroughly enjoyed. Ensuring that everyone who works with children and young people knows their safeguarding responsibilities lin partnership with DSOI Liluigically CommlssSoning new and existing leaders and helpers, al Confirfflation Services where ossible Holding a Service of Celebration and Re- comtnissioning for thosè who tninister lo the young The youth ALM electNe was wn in 8ummer 2022. but the repositioned Autumn edition was postponed due lo low uptake, though this was not surprising given it wa5 recently run in the summer. Other training opportunities cam8 in the form of the workshop delivered al the Dioc&s8n Conference, and delivery of sfyssions for the Start of Ministry session lor Curates. Officers once again explored the possibility of organizing a Service of Celebration and Re-commissioning for those who minislei lo children and young people, however after ursuin several o tions, il had not been ossible lo The Blackbum Diocesan Board of Educatlon Annual Report and Financi31 Slalements For the ear ended 31 Decèmber 2022 identify a suitable dale and venue due to olher diocesan commitments. Youth Leader conferen￿ was a great day, offering support for youth leaders and church leaders wherever they are in temis of ministering wilh young people. Officers delivered the 'Reaching the next generations, session for M'.Power. Partneiing wlth ecumenical partners we have run The Gathering lor youth leaders in Lancashire which ha5 seen over 50tsk of those connecting with the gathering serving young people in Anglican chLJrches. The Gathering is a IIThB 8nd space foi youth leaders to c(>nnect, share and SUPPOrt one another in their ministries with young people. To develop and implernenl a project that is design&d lo grow work wilh 11-17 year5 The Youth Provision Learning Community welcomed ils Se￿nd cohort of parish youth teams in June 2022. The dècision was taken to offer a specific learning community for the parishes whose clergy had undertaken Ihe Launchpad course in L8ncasler Deanery Schools Asp.iration for schools b Dec 2024 Our schools lo be built around the key Chll5tian values and qualities of d sèrvice and a Vision rooted in the Bible Actions of the D9E Reference is made to the DBE vision in all training materials and emphasis placed on the Biblical root of the vision. The'8e Prepared for SIAMS and Writing your SEAT courses took place each term via zoom and face to face and were very well attended. Bespoke training has been deliver8d in both Piimary and High schools acr055 the Diocese. A Comprehensive CPD Programme lor both Primary and High schools has been aceessed with increased take-up. Assooiale advisers continu8 with pastor81 calls and SLA The number of schools inspected has been 13 with 6 Excellent grades and 7 Good grades achieved Consuliancy visits to high schools including tailored resources, Chaplaincy and Religious Education networks look place ihrough the year. Ernbody a vision shaped by the personal failh and cornmilrnenl of their leaders Headleachers Conference look place in person 81 the Salmesbury Hotel and headteachei rn8elings continued via zoom and face to lace as in previou5 years. These have been well attended. A Deputy Headleacher and Headle3oher induction programme has taken place including input on Christia vision and Courageous Christian leadership, Governan and SIAMS All NQT induction trBining has been well attended All Ih&'Callèd to training opportunities linc. Called to Serve, FlOu￿shIng Schools, Academic and Rigorousl and Diroct Learnin Irainin ro rammes have been delivered The Blackburn Dlocesan Board of Education Annual Report and Financial Slalements For the ear ended 31 December 2022 and a new Headleacher Induction Booklet and rnentor scheme is in place. A programme of Retreats and Quiet Days has taken place DBE Servi¢gs Christian Leadtsrship programme ran 8gain this year in collaboration with other dioceses and is oversubscribed annually To embody a vision rooted in the bible All material produced for primary schools Golleclive Worship and RE ale clearly rooted in scripture. All courses make reference to seripture and how the content ol the course is connected to scripture. Worship Together Across the Diocese content is aligned with the Church Year and the new series'Have you ever heard of ?' is Snlroducing less welkknown characters in the Bible was very popular Enable and encourage a praying 8nd worshipping community where distinctly Christian celebrations are inlegial to the learning experiences of all within the school communty Worship together acros8 the Diocese video resources are continuing lo be produced. Bishops Harvest materials for piiwary schools were produced and the 2022 Leavers service were also d¢lNered New resour￿$ have been shared with schools via Head Teachers meetings and emails and new resources have been created and distributed along with resources for the celebration ol the Queen's Platinum Jubilee and resources lo support schools in September following her death. Bi-annual delivery on Ihe IME2 pro9rarnme for new clergy continues The DBE have created signilFcant resources for the National Initiative 'FaSth al Home, to support Key Christian Festival and days of national significance Active engagement with National Networks, and Local Networks continues INASACRE, CEEFEL. Loe81 SAGREI Ensure Religious Education is at the heart of the uriKulum and is 8 core subject New Questlul RE syllabus website has been launched and Series of conferences look place across the Diocese and in Penrilh. Syllabus unit5 have been updated. bespoke films recorded and schoD15 have embraced the new formal positively. RE Coordinator Cluster meetings ¢onlinued throughout 2022 via zoom and lace to face The Primary RE Coordinators Conferen￿ took pL4ce al the Marriot Hotel SIAMS Inspeetion reports indicate that RE in schools is of high quality. Illuminating Pathways ha5 been moved to a new website along with the guiding light worship resources. Thls rnakes resour￿$ aceessible to all and removes the dependency on third-party supplier. The curriculum has been supplied lo other dioceses following reques15 from them for addilional resourTr for RE and worship 10 The Blackburn Diocesan Board of Education Annual Report and Financial St81eMen18 For the ear ended 31 December 2022 Recognise the presence of God in the uniqueness of each individual and in each person's speafic talents and gifts Significant development work on equality, diversity and justice has continued. A suite ol courses was designed and delivered. In 2022 over 100 01 tsur schools attended the Equality Diversily and Justice Strategy launch conferences. Develop a broad community open lo the worfd in which we live, which seeks to change il for the better Mullicultural Christianity resources in the RE syllabus have significantly increased and reSoU￿S for the teaching about World Faiths has also increased. Primary schools have proaclively changed the way they promote social action and there is a greater emphasis on pupils developing the skills to be a courageous advocate. A training course exploring Courageous Advocacy has been introduced and wasnwell attended. Celebrate success and treat failure with compassion Engagement with s¢hools using social media has increased, with Twiller regu18rly used to praise sucTrss Schools are sent lellers of ¢ongi8lulalions following inspections and visits are rnade lo school in difficult circumstance5. Staff regularly attend celebration events in schools. Support their alumni in finding ways lo continue IheiT faith journey, and lo provide a pathway or signpost for those alumni lookin lo re_en&a&e with faith Be strong and sustainable presences in their community with a structure that b8518etves the needs of the children and oun eo Seek to work in collaboratitsn with churches in delivering Vision 2026 Worship m8leri81s and RE Curriculum Gonlenl support schools in fulfilling these points Recognition 91ven tts schools achieving The Christian Aid Global Netghbours Award and foi schools with ABYf Schemes A suite of primary and secondary eonferences and training continues to encourage connection and worship and WOTk together between churche5 and schools. The DBF Choir Church initiative has also c￿￿ted better connections between churches and sd)ools across the diocese. School BuildSn The SCA system has been run effectively this year alongside a partner company DBE Services Ensure that School buildings are developed and maintsined lo b&sl m8el the need5 of PLJpiIs Costs have risen through the year leadlng to reduced ability lo deliver the number ol programmes that had been hoped for. A full piogratllm8 of capital work has b@8n planned and dellvered lo meet school needs. As in previous years. the level of need outweighed the funding envelope by around three times the amount. Regular meetings take place w￿h the school pla￿ planning team In Lancashire and detailed conversallons look place with Blackbum with Datwen over future pupil numbei projections. Seek opportunitie8 for expansion of existing church schools or new church 8chool provision Ensure the corre¢l treatment of school assets when schools close or Telocate A number of live cases cont¥nue to be handled by the DBE and TS an area of signific8nt work. These ai8 Oftgn oases of historic irioorrecl Irealm8nl of18nd. The DBE has sought lo regislei a nutnber of lilles with thè Land Regi81ry for school properties The DBE continues to research trusts and land of church school sot build a complete picture of Ihe school estate and ownershi oflgnd The Blackburn Diocesan Board of Education Annual Report and Financial Staternenls For the ear ended 31 December 2022 Chaplaincy Ke Ob ectives for 2024 We want lo help young people accept the Salvation offered through Jesus, death on th8 cross and embark on a lifelong journey as z disciple Actlons of th• DBE Ongoing work with university institutions to SUPPOrt the delivery of chaplaincy We want to help studènts in our unNersilies lo be discipled, nurtured and challenged in their falth, encouraged lo share their faith, and develop lo lead others in discipleship, witness and service. The first year of 8 shared role of Chaplaln 31 UCLAN and sludenl support at Preston Minster has operated with great success. offering a model of hc*w chaplaincy m8y develop in future. We want to help chaplains that enable the people Of God in our High Schools and Universities lo live OLJI the Christian lifg 8nd witness to the presence ol Jesu5 The post at the University of Cumbria is became vacant and discussions a￿ taking place about how best to SUPPOrt ministry in the unlversty sector We want to help young people transition from a school place of worship lo engagement in a Church of England multigenerational worshipping ¢ommunily that is ac￿Ssible lo the young Future Objectives The objeolives for the board of education remaln as above unlil 2024 FINANCE REVIEW Financial Performance l)uring the year to 3 I Decembcr 2022 the CliaTily made a loss of £278k against a gain vf £106k in 2021, this is due to a loss on inv¢simenis in the year of £293k. Principal Funding Sources There is an annual grant agreed in advance by the Blackburn Diocesan Board of Finance Limited as 8greed by the Diocesan Synod, A grant of servi¢e is provided in addition for the provision of fin8n¢e. The Board 15 also in receipt of funds allocated from the BDBF Reslricled Funds. Total funding from these sources for the year ended 31 December 2022 is £359,360 (2027.. £336,914). Service level agreetllents to provide support services to schools £278,86212021.- £278,090). Total interest and dividends income is £153,000 (2021." £88,4781 representing 12% of total income (2021.. 8%). This is due lo Invosling in Property Shares in CCLA lo generate income. Thg Blackburn Dio¢es8n Board ol Finance gr3nls represented zrourFd 30.1) of the total income of the chaiily for the year, equally 24% of the incom& came frorn serviTr level agreemonls and interest and dividend income was 120k. During the year a gift aid donation of £144,32112021..£145,1431 was received Irorr DBE Services Ltd. Significant expendlture The charitable company employs staff lo support schools in their mainlenance and building projects. During the year £40,11712021.. £38,764) was spent on directly undertaking 8CtNits'es in this area which indudes gener81ing voluntary income. Addilitsnal school support 15 provided by staff and consultants for the development and delivery of religious education, school vision and ethos and collectiv8 worship. This may be in the form ol diTecl support lor schools or running training eourses and events for the schools. During the ye8r £443,340 of school and governor support {2021.' £358,303) was spent on directly undertaking acth'vilies in this area. Youth and children's work occur both in s¢hoo18 and parishes. Youth and children's work directly undertaken activities cost £181,453 (2021.. £212,917). The charitable company also supports university chaplains and this support amounted lo £89,59112021.' £101,628) of aclivilie5 directly undertaken. Balance Sheet Posltion Nel assets a131 December 2022 arè £5,738,000 12021.. £6,016,000) which is made up of design818d funds of £3,109,0(X), re51ri¢led funds of £544,000 and endowment fvnds of E84.000 and unrestricted funds of £2,001,000. 12 The Blackburn Diocesan Board of Education Annual Report and Financial Slalemenls For the ear ended 31 December 2022 Within the balance sheet, and held in separate bank accounts as client funds. are the assets and liabilities relating lo Barchesler. £000 Debtors less than 1 ear Debtor5 reater than 1 ear 140 Cash on de 1,200 Cash al bank Creditors less than 1 ear Investment policy The thaiily utili$gS thg CBF fund with CCLA for investments. This ensures ethical investment. as investments are h81d in comp8ni85 which h8v8 high stand8rd5 of corporate governance and act in a responsible way towards stakeholders. Uniestricted and restricted funds are invested to balance income, liquidily and the reimbursement of capital. The investment policy foi long-teim funds is aimed primarily at generating a sustainable income with due regard to the need for preservation of ¢8pilal value. Resetrves pollcy The 10181 funds of the charitable company as at 31 December 2022 are £5.738,000, of which £544,000 are restricted 8nd £84.000 are eftdowment funds. The reserves ol Ihe company provide working capital foi the a¢livilies of the Board. The B(>ard also requir8s funds to be available to provide assistance lo schools forlheirconlribulion lo building projects and lo ensure contr.nued operation if income is disrupted. The Iruslees have revi8w8d th@ charity'5 nEeds for reserves in line wilh the guidance issued by Ihe Charily Commission. They have agreed to Set a reserves figure equivalent of 20ryA of predicted income for SCA and DFC expenditure costs on behalf of schools £1,048,000 and three to six months budgeted running costs for 2022, £532,889 (six rnonlhsl. The total approved level of reserves is £1,580,889. The total value of free reserves (general reserves less assets used in the charity and designated fvnd and any pensbon adjuslmentl is £1,473,000. The level ol free rese￿eS is £107,889 below the approved level The director5 al their summer meeting will review free reserves and designated funds along with plans for the lulure in order lo address the free resèrvè5 POSltion. The level cif designated funds at the year 8nd is £3,109,000 (2021.. £2,579,00ts). Material designated funds include the New Opportunity Fund at £344.418 for school buildings 5UPPtsrt and the Elmslie Fund at £450.914 for educational purposes in the Blackp(K)l area. Financial assistance and graiit making policy Organisalions Must make applications lo the Bo8Td of Education Executive. The Executlve Considers these in the light of their benefit for promoting Ghrislian education within thé Diocèsè. Consideration is also glven to the fln8ncial circumstances of the organisalion applying. Grants weTe less than 1VD of lolbl expenditure. PRINCIPLE RISKS AND UNCERTAINTIES The trustees of the charitable company have overg11 responsibillty for ensuiing that the charity has an appropriate system of controls, financial and olhetwise. The syslgms ol internal conlfol are designed to provide reasonabSe, but not absolute, assurance against material misslalemenl or loss. There is no inlern818udil function as il is not considered an efficient use of the resources of the charity. They inoludé.. A strategic plan and annual budget approved by the Irusle85', Regular consideration by the Board of Education of financial results and variance frtsm budgets.. Delegation ol authority and segregation of duties., IdenlificalioTr and man8getnpnt of risks. The Blackburn Dlocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 During the year the trustees have further developed their risk managernenl process to asse5S and docurnent business risks and implement risk management strategies. This involved assfyssing the types of risks the charity fa￿s, prioiitising them in terms of potential impact and likelihood of occuir8nce. and identifying me8ns of miligaling the risks. This piocess has drawn on the on-goino consid&r3lion ol business risk. which already form5 a significant aspect of the Irustees. duties. An annual meeting has been put in plaoe lo review the risk5 of the Blackburn Diocesan Board of Education. During the year consultants and advisers have b8en engaged to assi51 in the management of on-going work where there has been identified need. The key risks. which may impact on the charitable company, 8re'. Ke risks ations Loss of grant funding from the DBF., The company holds sufficient reserves to cope with funding shortages and would be able to restructur& the business to manage such a reduction Reduction in income from SLAS to a level not sufficient to Cover running costs.. The company holds sufficient reserves lo cope with funding shortages and would be able lo restructure the bvsiness to manage such a reducts'on A tight labour maikel leading to staff shortages.. Effective recruitment campaign8 and reviews of ment benefits ho e lo tackle this need An increase in slalutory duties that cannot be recharged to school8. Use of reserves and clarity in SLA ag￿eMentS lo reduce risks. Impact on risk and rlsk management The company iisk iegister already contained income losses and actions associated with them and has been updated lo include loss of Income from the DBF. The company continu85 lo be strong and anticipates that even with no DBF grant and reduction in investmen15 alld income, costs can be managed to ensure continued viability. STRUCTURE GOVERNANCE AND MANAGEMENT The Board of Education is a statutory body under the Diocesan Boards of Education Measure 2021. This rèquirtss every diocese lo have a Board of Eduoalion which has respon8ibility for overseeing the work of Church Schools and being responsible lor managing Education Charitable Trusts. The Board of Education was incorporated in November 1955 and is 8 company limited by guarantee. Those persons who are normally referred to as members of the Board of Education are in Company law the Directors of the Board and Trustees in charity law. The Trustees presenltheirreport and audited financial statement5 for the year endtsd 31 December 2022. The Twslees and the Trustees, Report conslilule the Directors and Directors, Report for Ctsmp8nies Act purposes. The financial statements have been prepared in accordance with the charity's Memorandum and Atticles of Association, the Companies Act 2006, the Charities SORP (Second Edilv)n, effective 1 January 20191 and applicable accounting standards FRS102. Organisatlon The Board of Educab'on, as defined in statute, has overall control of the activities of the Company. The Board operates with four sub-committees. The linan¢e, staffing and resourcgs commillee is responsible for all financial malleTS across thè work of the Board of Education. The schools work is split over two cotnrnillees with school Christian ethos development considered by the Distinctiveness Cotnmillee and the other aspects of work considered by the School Strategy Gommitlee. Parish support work is considered by the Children's and Youth Committee. The Board reports lo the Diocesan Synod (Membership of the Diocesan Synod is also the membe15hip of the Diocesan Board of Finance) annually and the Oireclor of Education also reports lo the Blshop's Council. Method of Appolntment of Trustees The trustee5 ale appointed in the following way.. The Chair ol the Board is nominated by the Diocesan Bishop. At least 4 bul not rnore than 5 members appointed by the Bishop. al least 4 but not more than S member5 elected by Diocesan Synod and al least 4 bul not more Ihan 5 mernbers co-opted by the DBE The trustees are elected by synod are elected every three y8ais. 14 The Blackburn Di0¢g$an Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 Inductlon and Training of Trustees On induction there is a m2eting with prospective trustees to explain their roles and responsibilities. They are advised of the sliuclurè of the Blackbum Dioctrsan Board of Education and associated companies. Trustee training is provided as a need is identified. Remuneration of key management personnel The Board is responsible for setting the pay for the key members of staff and any annual incrémènts are agreed by the Chair of the Board. Custodian Tru8tee The charitable company is the custodian Iruslee for all Voluntary Aided Church of England Schools in the Benefice area IDiocese of Blackbuml except in Qases where il is the 8clual trustee either by right Of the trustee document or following an order under S86 of the 1944 Education Act. Und&r the 2021 Dioc8san Board of Education Measure. the governing body or lin the case of an Academy) the proprietor of 8 church school which is on land in which a freehold or leasehold interest is held on trust for the purposes of a Ghurch school tnusl obtain the consent of the DBE before entering inlo an aoreement or arrangement in connection with an alteration lo or repair the premises of the school. TRUSTEES RESPONSIBILITIES The trustees are resptsnsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable 18w and regulations. Company law requires the trustees las Direclorsl to prepare financial slalements for each financial year. Under that law the trustees have 81ecled to prepa￿ the financial statements in accordance with UK Accounting Standards and appli¢able18w (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Slandard appI￿&ble the UK 8nd Republic of Irel&nd. Under Company law the Iruslees musl not approve the financial statements unless they are satisfied that they give a true and fair view ol the state of affairs ol the charitable company and of the surplus or deficit of the ¢harilable company lor that period. In preparing these financial slatements, the Iruslees are required lo: select suitable accounting policies and ihen apply them consislenlly,. observe methods and principles in the Charities SORP., make judgements and e3limale3 that are reasonable and prudent; slate whether appl￿able UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the ffinancial statements,, and prepare the financial statemènts tsn the going concern basis unless it is inappropriate to presume that the charitable company will contlnue its activities. The Iruslees are responsible forkeeping adequate accounting records that are sufficient to show and explain the charitable company's Iiansaclions snd disc105e with reasonable accuracy at any lime the fillancial position of the charitable company and ellable them lo ensure that the financial statements comply with the Corllpanies Act 2006. They have general responsibility for taking such slep5 85 are reasonably open lo th8m to safeguard the assets of the charitable company and lo prevenl and delect fraud and other irregularities. The trustee5 kre responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial $18lements may differ from legislation in other jurisdictions. STATEMENT OF DISCLOSURE TO THE AUDITORS So far as the Directors are aware.. there is no relev8nl audit inforTnation of which the charitable company's auditors are unaware, and we have taken all the steps that we ought lo have taken as Directors in order lo make ourselves aware of any relevant audit information and lo establish that the charitable company's auditors are aware ol than information. APPOINTMENT OF AUDITOR The re-appointment of Hays[n8￿ntyrè LLP as audbtors to the BDBE will be proposed at the Annual General Meeting. The Blackburn Diocesan Board of Educatlon Annual Report and Financial Slalements For the ear ended 31 December 2022 ADMINISTRATIVE DETAIL The Blackburn Diocfysan Board of Education Limited (by guarantee) hereafter 18lerred lo as the'charilable corrpany" 15 a registe￿d comp8ny and is regislgred with the Charity Commission. The company was incorporated on 30 November 1955. The trustees, who are also dlreclois lor the purpose8 of company law, present their trustee5' report, together with the audited financial slalements, lor the year ended 31 December 2022. This roport constitutes the Strategic Report and the Direcior5' R8POrt required under the Cornpanies Act 2006. Charily Registration number 1020101 Company registration nutnber 557954 Gompany Secretary Mr S Whittakar DIrectors￿ruste&S Mr JMP Hewitt iss J SnapÈ MrRJones Rev Canon A Holliday Rev P R M Venables A C Abernethy Rev Canon David Arnold D L Metcalfe Venerable D A Plckgn Rev S Lloyd Rev C Abbott Ms Y Arshad Chief Executive Officer Mr S Whittaker Appointments are made undei the Diocesan Board of Education Me88ure 2Q21 Advisers Solicitors Anthony Colllns Solicitors LLP 134 Edmund Stieel Bimiingham B3 2ES Bankers National Westminster Bank 35 King William Street Blaekburn B81 7DJ Insurer8 Ecclesiaslical Insurance Group Beaufort House Bruns￿Ck Road Gloucosler. GL1 1JZ Investment Advisors CCLA Investment M8nagement Ltd Senator House, 85 Queen Victoria Street London EC4V 4ET Regis18red Auditor Haysmacinlyre LLP 10 Queen Street Place London. EC4R 1AG Registered Address Diocesan Office Clayton House Walker Office Park Blockbum BB1 2QE 16 The Blackburn Diocesan Board of Educatlon Annual Report and Financial Slalemenls For the ear ended 31 December 2022 By order of the board The Vonerable Davld Picken Chairofthe Board of Education Blackburn Diocesan Board of Education Limited Clayton House WalkBr Office Park BLACKBURN BBI 2QE 18 September 2023 17 The Blackburn Diocesan Board ol Educatlon Annual Report and Financial Slalemenls For the ear ended 31 De￿mber 2022 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF EDUCATION Opinion We have audited the financial statements ofThe Blackburn Diocesan Board of Educ8lion for the year ended 31 December 2022 which comprise the Statement of Financial Aclivilies, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Slalement, and notes lo the financial ststements, including a surnmary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial statements.. give a true and fair view of the slate of the charitable company's affairs as al 31 December 2022 and of the charitable company's net movement in funds, including the income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements Section of our report. Wè are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going con￿rn basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have pèrformed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability lo continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concern are described in the relevant sections of this report, Other information The trustees are responsible for the other infomalion. The other information comprises the information included in the Annual Report. Our opinion on the financial statements doe5 not cover the other information and, except to the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit ol the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other inforrllalion is materially inconsistent with thè financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are required lo determine whether there is a material misslalemenl in the financial 51atemenls or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other infomialion, we are required lo report that fact. We have nothing lo report in this regard. Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in thè course of the audit.. The Blackburn Dlocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 the inlormalion given in the Annual Report Iwhich includes the strategic report and the directors. report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is consislenl with the financial stalemenls.. and the strategic report and the directors, report included within the Annual Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the directors. reportl. We have nothing lo report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept by the charitable company, or relums adequate for our 8udit have not been received from branches not visited by usl., or the charitable company financial statements are not in agreement with the accounting records and returns., or ertain disclosuTes of trustees, remuneration specified by law are not made,. or we have not received all the infomalion and explanations we require for our audit Responsibilities of trustees for the financial statements As explained more fulty in the trustees, responsibilities statement sel out on page 12, the Iruslees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine 18 necessary lo enable the preparation of financial st8tement8 that are free from material misslatemenl, whether due lo fraud or error. In preparing the financial ststements, the trustees are responsible for assessing the charitable company's ability lo Continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic alternative bul to do so. Auditor's responsibllities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due to fraud or error, and lo Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always dele¢l a material misstatement when it exists. Misslalemenls Can anse from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalements. Irregularities, including fraud, are instances of non-compliance with laws and ￿gUlatiOns. INe design proCedU￿S in line with our responsibilities, outlined above, lo delect material misstalemenls in respect of irregularities, including fraud. The exlenl to which our procedures are capable ol detecting irregularities, including fraud is detailed below.. Based on our understanding of the chari18ble company and the environment in which il operates, we identified that the princip81 risks of non-compliance with laws and regulations related lo the Companies Act 2006 and the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial slatemenls. We also considered other factors such as income lax, payroll tax and sales 18X. We evaluated management's incentives and opporlunilies for fraudulent manipulation of the financial statements (including the risk of override of conlrolsl and concluded that the risk was low. Audit procedures performed by the engagement team included.. Discussions with rnan8gem8nl including consideration of known or su8pecled instances of non-compliance with laws and regulation and fraud., Evaluating management's controls designed to prevent and detect irregularities.. Identifying and testing journals. in particular joumal entries posted with unusual account cornbinalions, postings by unusual users or with unusual desCFlPtion5'. and 19 The Blackburn Diocesan Board of Education Annual Report and Financi81 Statements For the ear ended 31 December 2022 Challenging assumptions and judgements made by management in their critical accounting esbmates Becau8e ol the inherent lirnilalions ol an audit, there is a risk that we will not delecl all irregularhies, including those leading to a material misstatement in th& financial statements or non-wmpliance with regulation. This risk increases the rnore that cotmpliance with a law or regulation is removed from the events and transaction5 refflecled in the financial slalements, as we will be less likely lo become aware of instances of non-compliance. The iisk is also greater regarding irregularities occuriifjg due lo fraud rather Ihall error, as fraud involves intentional coneealmenl. forgery. collusion, omission or misrepresentation. A further description of our responsibilities lor the audit of the financial statements is located on the Financial Reporting Council's website 81.. rc.or onsibilities. This description forms part ol our audilorfs report. Use of our rèport This report Is tnade solely to the eharilable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been underiaken so th81 we might state to the chaiilable company's members those matters we are ￿quired lo slate lo them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not 8coepl or assume responsibility lo anyone other than the charitable company and e charitable Company's members as a body, for our audit work, lor this report, or for the opinions we have formed. Adarn Halsey (Senior Stalulory Audilorl For and on behalf of Haysmacinlyre LLP. Statutory Auditors Dale.. 27 September 2023 10 Queen Street Pl8Ce London EC4R 1AG 20 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 STATEMENT OF FINANCIAL ACTIVITIES for the year ènded 31 Dècember 2022 Unrestrlrtod Note Gen9ral Fund £000 D£slgnatBd Fund £OQD Restrlcted Fund6 EndowmFnt Fund £100 rolal 2D22 £0 Total 2021 £000 Incomè and endowm8nts from.. Danalions and legac￿$ charitab￿ 2¢tivilies Other tradlng 2clivEtles Inve$iments 362 490 374 513 369 422 23 282 297 233 Total 1,138 39 1,186 1.028 Expendlture on.. Ra￿l￿g funds Chaiilable activities 1,139 16 15 1.170 1.143 Total 16 15 1.172 1,145 Net Incomellexpenditurel before Investment galns 24 14 N81 Ilossesy gains on investments io 12771 151 12931 225 Net Incom8llexp8ndlturel 12821 151 19 12791 10S Transfer between fun(ts 14 153SI 535 Actuarial gaknslllos59$1 delln8d benef5t pen51on s¢heme$ Net movement in fund5 530 20 12781 106 Total funds brought forward 14 2.818 2.579 524 95 5.910 Total funds carrled forward 14 2.001 3.109 544 84 5.738 6.016 All activities derive frorll continuing activities. The notes on pages 25 to 40 form part of these financial sts18m8nts. Details of comparaiive figures by fund are disclosed in note 23. 21 The Blackburn Diocesan Board of Educatlon Annual Repoil and Financial Statements For the ear ended 31 December 2022 INCOME AND EXPENDITURE ACCOUNT for the year &nded 31 December 2022 2022 £000 2021 £0 Total income Total expenditure 1,188 11,1721 1.026 11,1451 Operating profivldefiatl ftsr the year Net IIos5es}Igains on inveslrnents Aduarial loss deffined benefit schem8 14 12931 {1191 225 Net lexpendltureyincome for thè yèar 1278) 22 The Blackburn Diocesan Board of Education Annual RepDrl and Financial Slalements For the ear ended 31 December 2022 BALANCE SHEET at 31 December 2Q22 2022 £000 2021 £000 £ooD £000 Flxed assets Tangible assets Investments 528 2,170 543 2,473 2,698 3.016 Current assets Debtors lamounls receivable after more than One year £371,00012021'. £410,(￿J0)I Cash on deposit Cash at bank and in hand io 2,272 2.045 11 11 3,994 8,499 3,934 7.691 14,765 111,590) 13,670 {10,5231 Creditors.. amoLints falling due within one year 12 Nèt current assets 3,175 3,147 Total assèts less current liabilities Creditors: 8tnoun18 falling due after more than one year 5,873 6,163 12 {1351 11471 Net assets 5,738 6,016 Fund balances Endowment funds.. (including investment revaluation reserve of £56.25612021-.£67,463}) Restricted income funds lincluding investrnent revaluation reserve of £29,97912021..£38,540)1 Unrestricted income funds: General funds lincluding revaluation reserve of £781,72012021.£970,10211 Designated funds (including revaluation reserve ol £nil12021'.£nilll 14 95 544 524 14 2,001 2,818 14 3,109 2.579 5.738 6,016 The notes on pages 25 to 40 form part of these financial slalements. These financial statemènts were approved by the board of directors and were signed on its behalf on 18 September 2023 by: The Venerable David Picken Ch8irof the Board of Education The Blackburn Diocesan Board of Education is a company lirniled by guarantee registered in England and Wales Ino 5579541 23 The Blackburn Diocesan Board of Education Annual Report and Financial Slalemenls For the ear ended 31 December 2022 CASH FLOW STATEMENT for the yearended 31 December 2022 2022 £0( 2021 £000 Cash loutnowll inflow from operating activities Nel lexpenditurèvincome Nel lyaln5yk)55as on Investments DepreCiat￿n Dividends intere51 income IlnGreasellD8crèase in debtors turyEnt assets Decr88sÈ1llncr035el In deblots term assets Increase in creditors current liabililies IDecrease)Iln¢rea5e in creditors k)ro term liabililiÈs 1278} 303 25 12971 575 39 226 1121 106 12271 25 {2331 (1,2331 36 3,510 151 Nel cash leufflowll inflow 581 1.97g Cash from Snve¥ting actlvltla$ Dividends and interest income Purchasè ol tangible fixed os8e18 Purchase of investments 297 1101 233 13) 17001 Net cash inflowlloulflowl 287 14701 Increa5ellDecreasel in eash in the year 868 1,509 Cash and cash èquivalenls at the beginning of the year Cash and cash equivalents at the end of the year 11,62S 10,116 12,493 11,625 Analysls of cash and eash equivalents 2022 £ODO 2021 £000 Cash on deposit Cash al bank and in hand 3,994 8,499 3,934 7,691 12.493 11,625 The chariiable company does not have any debt and as such no reconciliation of nel debl note has been prÈsenled. 24 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS (forming part of the financi81 statements) Accounting policles Basis ofpreparation and going concem The financial statements have been prepared under the historic cost convention, with the exception of investments which are included on a market value basis. and in accordance with the Companie$ Act 2006, the Charities SORP Isecond Edition, effective 1 January 20191 and applicable accounting standards FRS102The charitable company manages its activities in line with income re￿ived. As a consequence, the Trustees believe the charitable company is well placed to successfully manage its risks. After making enquiries, the Trustees have a reasonable expectation Ihal the charitable company has adequate re80uices to continue in operational existence for the foreseeable future and the trustees do not believe there lo be any material uncertainties and as such believe the going concern basis remains appropriate. The Trustees have tsken into account the effect of the Covid 19 pandemic on its operations which, will remain largely unchanged in relation to the work with schools. The Trustees believe they have sufficient reserves lo allow lime to adjL5sI should grant funding for olher operations reduce. Accordingly, they continue lo adopt the going concern basis in preparing the Trustee's report and finanaal statements. The Truslees believe that the charitable cr)rnpany is a public benefit entity. The principa5 8ccounling poli¢i8s and oslimalion led)niques are as follows. Crltlcal accounting judgements and key sources of estimation uncertainty In the 8ppIic81ion of the accounting policies. trustees are required to make judgemenl, estimates. and a88umplions about the carrying value of assets and liabilities Ihat are not readily apparent from other sources. The estirnates and underlying assumptions are based on historical experience and other factors that are ¢on5idered lo be ￿leVant. Actual results may drffer from these estimates. The estimates and underlying assumptions are ieviewed on an ongoing basis. Revisions to ac¢oLJnting estimates are recognised in the period in which the estimate is revised if the ievision affects only that period, or in the perios of the revision and future period8 rf the revision affeeled CUTrenl and future periods. Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statemenls and estimates with a signifscant risk of material adjuslmenl in Ihe next year are deemed to be in relation to the depreciation rales of tangible fixed assets and the assumptions used in determining the value of the pension scheme deficit and are discussed below. In the view of the trustees, no assumptions conc8rning the future 018stirHalion unc8rtsinly 8ff8cling as50ts or liabilities at the balan￿ sheet dale are likely lo result in a material adjuslrrenl lo their carying amounts in the next financial year. Fixéd assèts and dèprnclatlon Assets with a value in excess of £500 ar8 capitalised. Depreciation is provided by the company to write off the cost less the estimated residual value tsf tangible fixed assets by equal instalments over their estimated useful economic lives as follows.. Freehold property 2°h per annum Re-modelling 3.33Yo per annum Computers 25°/0 per annum Fixtuies and filtings 5 - 1 Q°k per annum offi￿ equipment 25°/o per annum The charitable oompany will perform annual impairmenttesling of assets on which depreciation is not provided in accordance with FRS 102 to del8ltnin8 whether residual disposal valu85 of these assets in aggregate continue to exceed carrying value. Flxedasset Investments Fixed asset investments are induded in the balance sheet at marf(et value and the gain or loss taken to Ihe Slalem8nt of Financial Activities. Stocks Stocks are stated at the lower of cost and net realisable value. Debtors Debtors are stated at amounts receivabl8 le88 any provision for uncert8in re¢ovorabillly. 25 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 Dècember 2022 Deferred P8ymentArrangements Deferrod Payment Arrsngements are Bgreernenls lo defer p8ym&nl of the governoFs' li8bililies on buildings projects under the Barohester Schemo. Credito Creditors are stated al amounts payable. Income-. Grants r8coived and donatlons All grants and donations are recorded as income when receivable. Where granis have conditions relating to futu￿ accounting periods they are treated as defe￿d income and recognised in those accounting periods. Other donations are recorded as income when receivable. Grants received frorll the government on behallolthe Governors of schools are not recorded in these accounts as they are t￿ated as being Ihe income of the Governors of the schools. One grant is no longer allocated to the SGhool and is for conditioning funding. This money is 'paid lo eligible bodies rèsponsible for maintaining s¢hool buildings who are the Governors. The grant is calculated using a formul8 largely based tsn the number of pupils in VA Schools and the relative condition of each school building as assessed through a government survey. For the Board of Education. the allocation ol funding and the prioritisation of projects is managed by and through D8E Se￿ice5 who involve an independent advisor lo advise on the assessment of the bid5. Funding is allocated on an agreed set of principles with the highest priority being keeping all schools open, warTM and safe. The Board of Education has relatively little discretion in which projects lo fund as thi5 IS determined by the st81e of the building5. Fees and Chaplaincy income Fees received are reeognised on an accru81s basis in the period lo wh￿h they relate. Sorrfice lovel agreement income From April 1999 schools have beon invoiced for the support serVI￿S provided by the Board of Education, Prior to this School support contributions were voluntary. Income is recognised on an accruals basis. Arrèngemen( fea Income From 2009 arrangement fees are payable on loans arranged for schools by the Board of Educalim. The arrangement fee is deferred over the Ilfe of the loan. Investment Income Interest and dividends are recognised on an accwals basis. Grant from Blackburn Diocesan Board ofFinancè The annual grant is agreed in advance by the Blackburn Diocesan Board of Finance Limited as agreed by the Diocesan Synod. A grant of se￿ice is provided in 8ddilion to cash ft>r the provision of finance. Expenditure.. Grants payable Grants payable are debited to expenditure when the charitable company has a constructive oblig81ion lo pay. Barchester Scheme Building work The Board of Education has traditionally been involved in helping voluntary aided church school goveming bodies with projects involving major funding streams from the Department for Education IDIEI. This entails paying contractors, and professional fee invoices on behalf of the governing body conoeined, claiming the appropriale grant 190Y.I from the DfE, and collecting the governors, land 50rnelimes the local authorilyl conlribulion5. The Board might also hav8 agreed deferred payments arrangements lo the governors {10¢/0l to such project5. The gross turnover of su¢h adivily can aMO￿nt to considerable sums, where a major new build is concerned. The payment of such invoices is not accounted for as expenditure ol the Board. Normally. the Board has received gi8nl funding or the governors, contribution in advance, bul where this is not the case it IS shown as the making of short-term cash-flow deferred payments for the governinG bodles concerned. These are iepaKI when the 8ppropriate DfE grant and govemors, contributions are received. Essenb'ally the Board is acting as the aoènl of the appropriate g(>verning body in these transactions. Th8 Board also acts as an agent with DIE brrang8ments for making 'voluntary aided school annu81 devolved forrnula capital grant5, available lo schools in advance of project spend or approval. 26 The Blackburn Diocesan Board of Education Annual Report and Financial Slalements For the e8r ended 31 December 2022 During 2022 the lolal expendituie was £7,914,196 12021.. £10,763,032). This expenditure has not been recognised in the financial slalements of the company in line with FRS 102.23.4. Cost of Actlvltles The co$1 of iunning each department of the Board is recognlsed on an accruals basis. Governance and support ¢osts Governance costs consist of the audit fee and th8 Cost of preparing the accounts. Board of Education administralion support Costs are Fecogni5ed on an accruals basis. Support co$ls are apporiioned on 3 basls consistent with the use of resources. Taxation The Blackburn Diocesan Board of Education Limiled (by guarantee) is consideied lo pass the tests set out in paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition ol a charitable Company for UK Corporation Tax purposes. Accordingly, the charity is potentially exempt from laxalion in respect ol income or capital gains received within categories covered by Chapter 3 Part11 Corporation Tax Act 2010 or Section 256 of the Taxation ol Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Penslons The charitable company op9rates a defined contribution pension scheme. The a55ets of the scheme are held separately from those ol the charitable company in independently admini81ered funds. The amount charged in the statement of financial adivilies represents the contributions payable lo the schemè In rèspecl of the accounting period. Some of the charitable company's staff are members of the Church Workers Pension Fund. The costs Charged as expenditure represent the charitable ￿mpanY'S contributions payable in respect of the accounting p81iod. in accordan￿ with FRS102. Three employees ale membÈrs of the Church of England Funded Pension Scheme. At 31 December 2022 the Board of Education is iesponsible for its own liabilities on this Scheme 8nd as such the liability is held on the balance sheet. There is no liability at 31.12.22 Fund accounting Funds held by the charitable company are either.. un￿s117C1ed general funds- these are fLJnds which can be used in aocordance with thè charitable objects at the discretion of the Iruslees. Designated funds- these are funds set aside by the truste85 Out of unrestricled general funds for specific future purposes or projects. ReslriGled fund8- thèse are funds that can only be used for particular restricted purposes wilhin the 0￿ectS of the charilable company. ReslrictSons arise when specified by the donor or when funds are raised for particular reslricled purposes. Endowment funds This is capital, held in perpelLJlty to create income for specified purposes. Further explanation of the n8lure and purpose of each fund is included in the notes lo the financi81 statements. Vvhere a grant or donation is received lo fund a capital item or where an asset is donaled, il there is an obligation relating to the future use or retention of the relevant asset, the balance relating lo that asset is held within restricted funds as long as that Teslriclion exist5. Vthere there is no such restriction, Ihe income relating lo thè purchase of capital items is IransfeTied to unrestricted funds in the Statement ol Financial Realised gains on s¢hool$ Realised gains on schools represent amounts which accrue to the Board of Education from the sal& of hurch schools, land or buildings and which h8V8 been received in the period. Unrealised g?ins / losses on Investments Unrealised gains and losses on investments represent the aggregate change in market value of investments since the previous balance sheet date. R￿118￿￿ g8ins / lossès on Investments Realised gains or Ios88s on Inveslments relate lo actual gains or losses 8rising in the period on disposal. 27 The Blackburn Diocesan Board of Educatlon Annual Report and Financial Statements For the ear encled 31 December 2022 The financial statements have been prepared under the historic cost convention, with Ihg exception ol investmenls which are included on 8 market value b85is. and in aceordance with the Companies Act 2008, thè Charities SORP (Second Edition, effective 1 January 20191 and applicable aecotjnling standards FRS102The charitable company manages ils activllie5 in line with income received. As a consequence, the Trustees believe the charitable company is well placed to successfully rnanage bts nsks. After making enquirie5, the Tru5t8e8 have a reasonable expectation that the charitable company has adequate resources to continue in oper81ional existence for the foreseeable future. The Trustees have taken into account the effect of the Covid 19 pandemic on ils operations which. will remain largely unchanged in relation lo the work with schools. The Truslees believe they have sufficient reseNes to allow lime to adjust should grant funding lor other operations reduce. Accordingly, they continue lo adopt the going concern basis in preparing the Truslee's reptsrt and financial statements. The Trustees believe that the charitable comp8ny is a public benefit The princip81 accountin9 policies and estimation techniques are as follows. Remuneration of trustees No Iruslee has reeenred rernuneration from the Board of Education during lh8 year {2021.' £nlD. Expenses reimbursed lo trustees during the year amounted to £nil12021.' £nill. Staff numbers and costs The average number of people wnployed during thè yearwas 1812021.. 201. The average number ol lull-lime equwalenl persons employed by the charitablo company during the year, analysed by category. was as follows.. Number of employee5 2022 2021 Diro¢torof EduCat￿n Deputy and Assislanl Directors Principal Schools Adviser Schoo15 Improvetnert Officers Youth and Chikjren's Chapbinsl off￿er8 AdminislralFon and SecrelarK81 18 The aggregate payroll costs of these employe8s were as follows.. 2022 £000 498 2021 £ovo 561 60 40 Wages and salarie5 Social security c08ts Other p8nslon Gosls 97 639 651 During the year no employee r￿1Ve￿ a salary in excess of £60.OCQ, in the band £60,CKIO to £70,00012021.' on81. Pension contributions in ￿SpeCt ol this employee were £nil12021.' £7,881). Remuneratlon of key management personnel Key managetnenl personnel are deemed lo be those having authority and responsibility. delegated to them by the trustees, for planning, dir6cling and controlling the activities ol the charitable company. During 2022 they were.. Chlef Executive officer Stephen Vvhittaker Samuel Johnson Depuly Directtsr Remuneration, pensions and 8xpenses for these otnployees amounted lo £89,97612021= £154,612). In addition lo the above 18 ernployees (2021,'20) the charilablg company met some or all of the payroll costs of the following people who worked for the charitable company during the year bul were paid by the Church Cornmi58ioners. Number of person 28 The Blackburn Diocesan Board of Education Annual Report and Financi21 Statements For the ear ended 31 Dec&mber 2022 2022 2021 un￿￿$ty￿E Chaplains The lolal payroll costs durin9 the y8ar met by thè charitable company and related lo these non-employees amounted to £nil f2Q27.' £47,527). Penslon schemes Group Personal Panslon Plan The Blackburn Diocesan Board of Education participates in a defined contribution pension scheme. The assets ol the pension scheme 8re held separately from those of the Blackburn Diocesan Board of EdurAlion in an independently administered fund, The pension cost charge lor the year represents contributions payable by the Blackbum Diocesan Board of Education lo the fund. Th8 Blackburn Dioc&san Board Of Education participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the sch9mes separately from those of the Employer and the other participating employers. The Church Workers Pension Fund has a 5edion known as the Defined Benefits Scheme, a deferred annuity section known as Pension Bvllder Classlc and a cash balance sectKin known as Pension Builder 2014. Deflned Benefits Scheme Tho Defined Benefits Scheme fDBS'I section oflhe Church Workèrs Pension Fund prowdes benefits for lay staff based on final pensionable salaries. For funding puipos8s, DBS is divided into sub-pools in respect of each p8rtioipaling empltsyer as well as a further SLSl>pool. known as the Lifo Risk Pool. The Life Risk Pool exists lo share certain risks balweèn employers, including those relating to mortality and post-retirement investment relums. The division of the DBS into sub-pools i5 notiona5 and is for the purpose of calculating ongoing conlribulions. This does not alter the fact that the assets of the DBS are held as 8 single trust fund out ol which all Ihe benefits 8r8 lo be provided. From lime to time. a notional pretnium is transferred from employers, sub-pools lo the Life Risk Pool and all pensions and death benefits are paid from the Lrfe Risk Pool. The scheme is a multi-employer scheme as described in Section 28 of FRS 102. 11 is not possible lo attrlbule DBS assets and liabilities to specific etnployers, since each employer, through the Life Risk Section, is exposed lo actuarial risks associated with the current and former employees of other entities p8rtioipaling in DBS. This means that contributions are accounted for as if DBS were a defined contribution schem8. The pensions costs charged lo the SOFA during the year are contributions payable towards benefits and expenses accrued in that year12022.' £22,633, 2021.. £21,294 plus the figures in relation lo the DBS deficit highlighlod in the iable below as being Tecognised in th8 SOFA, giving a total charge of £22.633 for 202212021.. £21,294). 11, following an actuarial valuation of the ￿fe Risk Pool, there 15 a surplLSS or deficit in the pool, further transfers may be m8de from the Life Risk Pool lo the employers, sub-pools, or vioe versa. The amounts to be transferred land their allocation between the sub-poolsl will be sellled by the Church of England Pensions Board having taken advice from the Actuary. A valuation of DBS is carried out once every three years. The m(>st recently finalised valuation was carried out as at 31 December 2019. In this valuation. the Life Risk Section was shown lo be in deficit by £7.7m and £7.7m was notionally transferred frorm the ernployers, sub-pools to the Life Risk Section. This increased the employer contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m. The next actuarial valuation is due at 31 DecernbeT 2022. Following the 2019 valuallon, the Employer entered into an agreem8nlwilh the Church Workers Pènsion Fund lo pay a contribution rate of 45.2% of pensionable salary and expenses of £3.200 per year. 29 The Blackburn Dlocesan Board of Education Annual Report and Financial St21emenls For the ear ended 31 December 2022 The movement in the provision is set out below.. 2022 £000 2Q27 £000 Balarice sheet Ilability at 1 January Deficit conlribulion paid Interest cosl Irecognised in SOFA Remaining change to kne balance sheet liabilily. Ir8cognised in SOFA) Balance sheet liability at 31 December Comprise5 change in agreed deficit recovery plan and change in discount rate between year-ends. This liability represents the present value of the deficit contributions agreed as 81 the accounllng dale and has been valued using the following assumptions, Set by referenc810 the duration oflhe defiat recovery payments.. December 2022 £000 December 2021 £000 December 2020 £000 Discount rate 0.00% 0.00% The legal structure of the ￿heme is such that if another employer fails, the employer could become responsible for paying a share of that employèrfs pension liabilitiès. Church of England Funded Pension Scheme {CEFPSI Blackburn Diocesan Board of Education participates in the Church ol England Funded Pensions Scheme for slipendiary clergy, a defin8d benefit pension scheme. This s¢herlle is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from thos& of the Responsible Bodies. Each participating Responsible 8ody In the scheme pèy5 contributions al a ￿mrnOn contribution rate applied lo pensionable stipends. The scheme is considered to be a mulli-employer soheme as described in Section 28 of FRS 102. This means il is not possible to allribute the Scheme's as5et5 and liabilities to each speafic Rosponsible Body. and this means contributions are accoLJntod for as if the Scheme were a delined contribution scherne. The p8nsions costs charged lo the SOFA in the year are contributions payable towards benefit5 and expenses accrued in Ihal year12022.' £21,015, 2021.. £65,835). A valuation of the Seheme 15 carried out once every three years. The mosl recent Scheme valuation completed was carried out al as 31 Decernber 2021. The 2021 valuation reve81ed a surplus of £560m, based on assets of £2,720m and a funding target of £2,18Qm, bsses8ed using the following assumplioTI8.' An average discount rale of 2.70A p.8.. RPI inflalion of 3.6% p.a. land pension increèses Consistent with thi81', CPIH inflation in line with RPI less 0.8Vo pre 2030 moving lo RPI with no adjustment frorn 2030 onwards., Increase in pensionable stipends In line with CPIH.. Mortalily in acwrdance with ol the S3NA tables, with allowance for improvements in mortality rates in line with the CM12020 extended model with a long term annual rate of improvetner)t of 1.50/0. a smoothing parametero17, an initial addition to mortality improvernents ofO.5010 pa and an allowancè lor 2020 da18 01 OQ/o li.e. w2020 = 0°1¢). Following the 31 December 2018 valuation. a deficit recovery plan wgs put in place until 31 December 2022 and the deficit recovery contributions las a percentage ol pensionable slipendsl weie as set out in the table below. An interim reduction to delicil conlribulions lo 3 2/¢ of pensionsble stipends wa8 made with effect from 1 Apiil 2022. Following finalisation of the 31 Decernbei 2021 valuation, deficit contributions ceased with effect from 1 January 2023, Sin￿ the Scheme was in surplu8, 30 The Blackbum Dioeesan Board of Education Annual Report and Financial Slalemenls For the ear ended 31 December 2022 A5 al 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery pl2n in force were as sel out in the table below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as s81 out in th8 Scheme'5 rules. °k of pensionable stipends January 2018 to D8c8mbtrr 2020 January 2021 to December 2022 Deficit repair contributions 11.9% Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However. as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is set oul in the table below. 2022 £000 2021 £000 Balance sheet liability at 1 January Deficit contribution paid Interest cost Irecognised in SOFA) Remaining change lo Ihe balance sheet liabilitf Irecognised in SOFA) 131 151 Bal8nce sheet liebility at 31 De￿mber Comprises ehange in agreed defiat recovery plan 8nd ch8ng8 in discounl rate and assumptions between yèai-ends. Thi8 li8bilily represents the present value ol the deficit contributions 8gre8d as al thè accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the defioil recovery payments but as at 31 December 2021, under acoounting rules the payments a￿ not discoun18d since the remaining recovery plan is less than 12 months. No price illflalion assumption is needed since pensionable stipends for the remainder of the recovery plan are already known. December 2022 £000 December 2021 £000 Decèmber 2020 £000 Discount rale nla nla nla 0.0° nla -1.5°/ 0.2Vo 3.1° 1,6Yo Price intlation Increase to total pensionable payroll The legal structure of the scheme is such that if another Responsible Body fails, Blackburn Diocesan Board of Edu¢alitsn eoLJld become responsible for paying a shale of that Responsible Body's pension liabilities. The Blackbum Diocesan Board of Education Annual Report and Financial Slalements For the ear ended 31 December 2022 Analysis of Income 2022 £000 2021 £000 Donations and legacie3 Donations Dioces&n Board ol Finan￿ General Funds External organisalions 12 359 337 20 374 369 Income from charftablo activities Fees and Chaplaincy inccime Sale of publioalions and courses Service level agreements Rent 19 51 278 74 140 279 85 513 422 Othèr trad5ng actlviti8B DBE Services Fees Investmènt income DBE Services gift-aid donalion {17Q/o owned) Dividends Inloiest 144 147 145 82 297 233 Fund Ral$ing Costs Actlvitie5 undertaken dlrectly £000 Grant fundlng of Support costs £000 Total 2022 £ODO Total 2021 £000 £000 FundratsSng trading Total Fund.Raising Costs Charltable Activities AGtivity o¥ Prouramrne Actlvltles undertaken d4rectly £000 GTant funding of Support 05t5 £000 Total 2022 £000 Total 2021 £000 £000 C05t of charitable activ1t￿S.. Schoolsndgovgmorsupport HighFr and furth&r &du¢atiDn child￿￿'S work Youth work Cenlr81- d8signalÉd School buildings stspport 443 89 72 103 221 44 36 51 604 134 110 158 16 B8 482 135 BO 206 64 24 240 Ch8rilabk activilEs subtotal 778 16 376 1,170 1.143 32 The Blackbum Dlocesan Board of Education Annual Report and Financial Slalemenls For the ear ended 31 December 2022 Net expenditure for the year 2022 £000 2021 £000 These are ststed after charging.. Auditor5 remuneration 10 Totsl 13 10 Reallsed galns on schools The Church of Eng18nd Primary School at Out Rawcliffe was closed in July 2013 and the Board is currently in the process of establishing the exact lemis regarding closure and use of the sale proceeds of the original Trust Deed. If thls is not available, the Board will follow due process in est8blishing how the pioceeds from the sale of the schoril should be used or distributed. During 2016 £298,960 was received regarding this school and is curiBnlty being held as a liability on the balance sheet. Should any other diocesan schools be closed. and the piemises be sold, then the DI0￿$an Board of Education would norrnally have a claim on some or all of the proceeds, Tanglble fixed assets Flxtures, fittlngs and other equlpment £000 Bulldlnus £000 rotsl £000 Cost At beglnning of year Additions Disposals 616 86 702 At end of year 625 87 712 Depre¢18tl¢wt At begInn￿g ofyear Charge for y8ar Elm on disposal 62 159 25 17 At end ofye8r 114 70 184 Net book value At 31 December2022 511 17 528 Atjl Detember 2027 619 24 543 Investments Unllsted securities Central Board of Flnan¢e Church of England Fixed interest sÈ¢uritie5 fund £000 Total UK Investments £DOO Investment Fund £000 Property Fund £000 Market valuation Al 31 December 2021 Decraase In market value 1.513 1187) 208 Y62 1881 2,473 13031 Al 31 Oecember 2022 1,326 160 664 2,170 Historic cost 1.145 224 700 669 Included within Total UK Investments is a 17Vo holding in OBE Services Limited, a non-listed cornp8ny and related party. The Board of Education holds 12 shares in DBE S8tvices Limited valued at £1212021.. £121. 3] The Blackburn Dlocesan Board of Educatlon Annual Report and Financial Statements For the ear ended 31 December 2022 10 Debtors 2022 £000 2021 £000 Amotsnts receivsble wlthln orte year Deferred payments Qn school building projects DsferrÈd PaymentArrangeff*nts 1,414 1.250 18 30 126 Ot￿r dpblors Loans Prepaym&Dts AcGrued income Amounts due frotn Diocesan Board of Finan¢& Amounts du8 from DBE S8Mces Ltd 307 16 42 75 176 Debtors.. arllounls receivable within onè yèai 1,901 1.636 Amounts rocelvable aftermore than ono year D8ferred PaymentAirang6m8nts Loan5 Amount owed fr(ND rekBted party Icbyaril 140 11 220 12 260 Debtors.. amounts recewable after more than one year 371 410 Inslalments payablo due in h¥0 and flv6 years Inslalments due In flve years or more Instalm911ts duo In ont y9ar Total 2022 £000 2021 £000 2022 £000 2021 £000 2022 £000 2021 £o(MJ 2022 £DOO 2021 £000 Deffer￿d Payment Arrangements Loans 10 74 74 62 146 156 13 Total 19 78 78 69 72 158 169 11 Deposits and cash at bank and in hand 2￿22 £000 £ODO B8nk ICurrentAccount and D9posi1s1 D8posils w￿h Central BoBrd of Finance Churth of England 8.499 3,994 7,691 3,934 12,493 11,625 34 The Blackburn Dloeesan Board of Education Annual Report and Financial Slalements For the ear ended 31 December 2022 12 Credltors 2022 £000 2021 £000 Amounts falllng due wlthin one year Receip15 in advance on behalf ol boards of school governors Monie8 held on b8half of schools in relation to De¥0￿e￿ Formukg Capital IDFCI Monie5 hehj on behalf of schools in relation lo SCA F￿ndIng Monies hekj on b8h81f of schools in relation to PSt)S Funding other creditors Accruals Defetre(f inci)n 3,376 3.946 2.187 1.155 84S 13 4,583 1.719 1,441 2.078 63Y 21 74 Creditors falling due wthin one year 11,690 10.523 Arnourjts falling due after n70re Ihan on8year Edu¢alon Itu$t fu￿$ Defined benefrt pension liability 135 143 Creditors falling due after more than one year 135 147 D818tt6d Income.. Al beginning of year Recognised in year Deferred incorm 20T2 74 (741 68 Al ofyear 68 Deferred income is reeognised 8$ follows.. Recognisable belween two and five years 2022 £000 Recognl$ed In ong yeèt 2022 £000 Recognisable after rive years 2022 £000 To181 2022 £000 2021 £000 2021 £000 2021 £000 2021 £000 D&f6ffed incomè 68 74 74 13 Funds Unre8trlctÈd General fund Doslgnated lund Restrictèd Endovmignt fund furKI £oao £000 Total £000 £DOO £000 At beginning of year 2,818 2.579 524 6,016 Surplus11defi￿tI of income overexpendilure in the year Inveslmentgalns In the year Transf8rs ba￿an fund8 AcluaFial bss on p&nsK)n sche 151 24 14 12931 (2TTI 15361 535 At end ofyear 2,001 3.109 544 5.738 35 The Blackburn Olocesan Board of Educatlon Annual Report and Financial Statements For the ear ended 31 December 2022 The General Fund consists of those amounts available for the general purposes of the charitable company. At At 1 January 31 December 2022 2022 £000 £000 Net Investm8llt galns. losses and transfe Income £000 Expenditure £000 £000 Dtsslgnated funds Sponsoiing academ￿5 Elmslie Fund New Opportunity Fund Church Work8is Pensbn Deficit Admissions & App8als Apty)intmenl8 Vision 2026 Statutory Goveinanc8 Schools causlng ¢onTrrn Digital Resources unde￿[lI1ng DBF gr8nl Youth Developtnenl 365 454 347 53 206 70 385 451 (71 53 167 1391 438 126 194 111 700 100 150 194 132 1241 700 100 2.579 11 535 3,10 Restrfcted fund5 Re$￿ential Incorn& Fund EduGal￿n Tru8t Funds COmn￿￿ Fund Other restr￿ted funt15 38 (21 49 35 389 80 373 12 23 624 39 Endowment funds Residential Endowment Fund The specific purposes for whieh tho designated and resliicled funds are to be applied is as follows.. The Youth Oevelopment fund- for the support of chaplaincy work. The Academies fund- lo support the spon50ring of academies. The Elmslie fLJnd is used for the work of the youlh chaplain at Blackpool St Georgo GE School. The New Opporiunity Fund for 5ch¢)ol buildings support. The Residential Endowment and Income Fund gre used to support Youth Work activities. The Common Fund was set up by schools rnake voluntary don8lion3 to support capital work in schools. Church workers pension defi¢il- designated lor u59 8gainsl deficits on the defined benelil pension scheme for some employed staff. Admissions, Appointments and Appeals there is no direct source of income. design81ed lo cover the cost of slatutory axpèndilure for where Educational Trust Fund the revaluation re5eNe on funds held in credbtors awaiting final decision on ownership of the Investment. Vision 2026 - a designated fund h8s been created lo en8ble churches and schools to fund inilialives and project5 that seek lo deliver the objectives ol the dioce$8 vision 2026. Slatulory Governance goveinance in schools. this fund is lo be used lo Unde￿rite the Board of Education's stslulory duties for 36 The Blackburn Diocesan Board of Educatlon Annual Report and Financial Statements For the ear ended 31 December 2022 Schools causing con￿rn schools falling into difflcully often iequire financial support and assistan￿ this fund will enable the diocese to work in partnership with local authorities lo support schoo15 as they seek lo improve. Digilal Resources- for the production of digital resour￿8 for the Board of Education and staffing to meet the target of signrficanlly increasing digil81 reach. DBF Grant- for the undemriting of the DBF Grbnt. Share capital The ch81il8ble company is limited by guarantee, regISte￿d in England and does not have authorised or allolled shale capital. The liability ol each member ol the Board may not exceed £1. Analysis of net assets between funds 14 15 Creditor5 falling due after mtsrg than ong year £000 Net current assots £000 Tanglble fixed assets Invo8bn8nts £000 Total £000 £000 Untestricted Fund5 Restrictéd Furnl I￿81n¢t0￿) Endown￿￿t fund IFeslric18dl 528 2,051 35 2,531 644 5,110 544 84 11351 528 2,170 3,176 11351 5.738 16 Commitments There were no commitments in 2022. 17 Related paty transaetlons The company is related to Blackburn Di0¢8$8n Board of Finance Ltd who provides significant funding by way of a grant. At the year-end the balance du8 from this company was £170,070 12021.. £178,185). Grants received in the year Irom this company arnounled lo £359,360 12021.. £338,914) and grants paid to this company amounted lo £9,37512021.. £22,500). Recharges in Ihe year were £24,314 {2021'. £15,953). The company ig r8l¥led to DBE Servic85 Ltd by virtue of owning 17°k of the Sha￿ capital. There was £nil due from DBE Services Lld12021.. £1,087) al the year end and recharges in the year were £11,00912021,. £8,911). The company is related to Cidari Multi-Academy Trust which was set up by both the DBE and D&F to look after Church of England schools converting to academies within the diocese. As al 31 December 2022 £259,608 12021.. £289.6081 w88 due from this company and recharges in the year were £10.492 (2021.. £9.8871. 18 Financial instruments 2022 £000 2027 £000 Flnan¢ial assets measured al fairvalue 2.170 2,473 Financial assets measured at amortised cost 15,360 14,511 Financial liabilities measured at amortised cost Financial ITabilities tneasured at fair valu 37 The Blackburn Diocesan Board of Education AnnLJal Report and Financial Statements For the ear ended 31 December 2022 19 Prior year comparatlve Statement of Financial Activities Unrestrlcted 2021 General Fund £000 D88lgnated Fund £000 Restricted Endowm&nt Funds Funds £000 £000 Total £000 Incorne and endowments frotn.. Donatlons and legaaes ¢h81itable activities other trading activrties Investments 357 399 12 23 389 422 229 233 Totsl 39 1,026 ÈxpendJtU￿ oD- Ralsing funds Charitable adivilies 1.079 37 27 1,143 Total 1.081 37 27 1,145 Net Incomollèxppndlturg) b8for& Investmènt gain5 1941 1371 NÈt gain$ll1055esl on investr￿DIS 208 12 225 Not InGomellexp8ndlturel 114 1371 12 06 Transf&r b&lw8eTr funds 136 11341 Actuar&41 IIos5e51 on defined benéfit pension schemes N8t movernent funds 250 15 12 106 Total funds brought forward 2,568 2,750 509 83 5.910 Total funds carrled forward 2,818 2.579 524 95 6,018 20 Prior year Fund Ralslng Costs Actlvltlè$ unéortakon dlrectly £000 Grant fundlng of Supwrt Costs £000 Total 2021 £000 Total 2020 £￿0 £000 Fundraisln9 trading Total Fund-Ralslng Costs 38 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2022 21 Prior year Charitable Activities Activity or Programme Activitles undertaken dlrectly £000 Grant fundlng ol Support costs Total 2021 £000 Total 2020 £000 £000 £000 Cost of Charitab￿ athvilies.. Sc1K￿l and governorsUPPOrt Hlghérbnd1urthereduG8f￿n Children's work Youfh work Schools work. deS￿nated Schoolbuildings support 358 101 60 151 124 35 20 53 482 136 BO 206 408 171 266 188 53 241 191 Charitable actn11t￿$ sublolal 858 285 1,14S 1,126 22 Prior year Funds Unr8Strlcted Genaral D8slgnated fund fund £000 £000 Restrfcted Endowment fund fund £ODO £000 Tota £DOO At beginning of year 2,568 2,750 509 5,910 Surpluslldeficltl of in¢ome overexpenditur8 in the y6ar IDveslryEntgains in the year Tran5fets beiween funds A¢iuarial loss on pensh)n scthm8 1371 12 208 136 225 11341 At end ofyear 2,818 2,579 524 95 6,016 39 The Blackburn Diocesan Board of Education Annual Report and Financial Statement5 For the ear ended 31 December 2022 The General Fund consists of those amounts available for the general purposes of the charitable company. At 1 January 2021 £000 Net Investmont galns,108ses and tr8nsf8rs £000 At 31 Decemb8r 2021 £000 Income Expenditure £000 £000 D8slgnated lund5 Youth and ChaplainGy Sponsoring aCadern￿s Elmslie Fund New Opportunity Fund Church Wotkers Perb5ron Deficit CLqyton House Admissbn5 & Appeals Appointmenls &Appeals Vision 2026 Statutory Governan Schoo15 causing ojncern Digital R8sour(ts 43 365 477 367 53 1431 365 454 347 53 1231 238 1321 206 Yo 608 150 194 132 80 608 173 198 156 (231 1241 2,750 1371 11341 2,579 Restricted l¢Jn¢ls ReshJ&nlial Intome Fund Education Trust FuTrd5 Common Fund Other restricted funds 35 38 49 49 361 64 12 25 373 1251 509 $24 Endowrnentfunds Residential Endowmènt Fund 83 12 98 23 Prior year Analysis of net assets between funds Cyedltors Net current assets £000 Tangible flxed asststs arter morè than one year Investments £DOD Totsl £000 £000 £000 Unre5tricled Funds Restiicted Fund Iieslricledl Endowment fund Irestrttedl 543 2,334 2,524 623 141 11431 6,397 524 95 95 543 2.473 3,147 11471 6.016 40