, BLQCLBURn OCEson BOARD OF EDVCATlOn r VISION?Q?6 HEALTHY CI IURCI IES IRANSFORMING COMMUNITIES The Blackburn Diocesan Board of Education Trustees, annual report and financial statements Company limited by guarantee (no 557954) Registered charity (no 1020101) 31 December 2023 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Contents VISION STATEMENT........,.. LEGAL OBJECT5.................,.......................... STRATEGIC REPORT.......................................................................................................................... STRATEGIC AIMS AND OBJECTIVES FOR THE YEAR..................................... ACTIVITIES AND PERFORMANCE................................................................................................................ FINANCE REVIEW....................................................................................................................................14 PRINCIPLE RISKS AND UNCERTAINTIES................................... .16 STRUCTURE GOVERNANCE AND MANAGEMENT..........................................................................16 TRUSTEES RESPONSIBILITIES. .17 STATEMENT OF DISCLOSURE TO THE AUDITORS.....................................................................................18 APPOINTMENT OF AUDITOR........................................................................,...........................................18 ADMINISTRATIVE DETAIL.............................................................,..............................................,,.18 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF EDUCATION.................,............................................................................................................20 STATEMENT OF FINANCIAL ACTIVITIES........................... .23 INCOME AND EXPENDITURE ACCOUNT........................................................................................24 BALANCE SHEET............,.................................................,..............................................................25 CASH FLOW STATEMENT.....................,................................................,.......................,................26 NOTES TO THE FINANCIAL STATEMENTS..................................................................... ................27 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 VISION STATEMENT Senie Christ. Share the Gospel. Support. Equip and Educate Healthy Churches Transforming Communities LEGAL OBJECTS To promote or assist in Ihe promotion of education in the Diocese of Bl8ckburn ('Ihe diocese.) being education which is consislenl with the faith and practice of the Church of England. To promote or assist in the promotion of religious education and religious worship in schools in the diocese. To promote or assist in the promotion of church schools in the diocese and to advise the governors of such schools, and trustees of church educational endowmenls and any other body or person concerned on any matter affecting church schools in the diocese,. lo promote co-operalion between its Board of Management (Yhe board") and bodies or persons concerned in any respect with education in the diocese. To discharge within the diocese the functions assigned to Diocesan Boards of Education by section 3 10 8 and 11 of the Diocesan Boards of Education Measure 1991 or by any amending legislation. To discharge within Ihe diocese such other functions relating lo Ihe furtherance of church education as may be assigned to the board by the diocesan synod, other than functions relating to church schools or church educational endowmenls. To do all such things as are incidental or conducive to the attainment of the aforesaid objects, including acceptance of the Irusleeship of any trusts and the investmenl of any moneys not immediately required for its purpose in or upon such investments securities as the board may think fit. STRATEGIC REPORT STRATEGIC AIMS AND OBJECTIVES FOR THE YEAR The support of Church of England schools in all areas of Iheir aclivilies. In particular.. Development and delivery of religious education and colleclive worship Protection of the Church of England's interests in academy conversions in Blackburn Diocese Maintenance of church school buildings belonging lo trustees of Church of England schools Protection of the interests of the trustees of Church of England schools The developmenl of youth and children's work in Parishes and Schools across the Diocese of Blackburn. The support and development of Chrislian Spirituality in secular institutions of higher and further education. The provision of Chaplaincy support to church colleges and church-based universities. The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Publi¢ Benefit Statement The Board exists undei the Diocesan Board of Education Measure (2021). The Measure sets out the core purpose of the Board of Education, which is lo promote or assist in the promotion of education in the diocese that is consistent with the faith and practice of the Church of England., promote or assist in the promotion of religious education and religious worship in schools in the diocese., promote or assist in the promotion of church schools in the diocese.. promote co-operation between itself and other persons concerned with education in the diocese. In addition, the Board of Educalion support youth and children's work across church in the diocese 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. Blackburn Diocesan Board of Education (BDBE) supports the promotion of Christian faith 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 also ensures the provision of buildings which can be used by parishes and outside bodies for the benefit of all. The trustees have referred to Charity Commission guidance on public benefit and consider the entity is compliant. Our support foryouth and Children's Work across the Diocese touches the lives ofthousands ofpeople, many ofwhom are not regular church attenders and supports churches in their work with the children and young people of local communities. ACTIVITIES AND PERFORMANCE Main Achievements of the Year Objectives sel until 2024 for the Board of Education= Prayer for the work of the Board Objectives DBE Actions Encouraging a 'pray first culture, 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 continued to be the first activity on the agenda at all courses, conferences, and meetings. All School Advisers pray with the Head Teachers they visit. Prayer is included in training sessions for Early Careers Teachers and in the content of CPD on Collective Worship and Enhancing Children's Spirituality. The Developing Outdoor Prayer Spaces course supports school leaders to develop creative and inspirational spaces for prayer in schools. Encourage dedicated time and energy to the pursuit of hearing God's heart and waiting on Him Encouraging prayer sponsors in parishes where congregation members pray directly for individual children and oun eo Equipping young people with the confidence to pray The Advent and Lent Quiet Days provide senior leaders with the opportunity to pause, reflect and to listen to God's voice. Prayer continues to be a strong feature in many ofour resources, with examples of written prayers being provided as well as suggestions for how children and young people can be encouraged to pray themselves. A key focus of the Youth Leader Conference this year was around how we can pray for young people, growing a culture of prayer in our churches for under 18's, as well as how we can support and help young people grow in their own personal prayer life. This was aided by Josh Green from 2417 Prayer inputting across the day. We have also been sharing their 'Origins' resource to youth groups to help to develop their ra er life. The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 This focus builds on the narrative in recent years of encouraging and helping to equip parishes to start their journey in youth ministry by intentionally praying for young people in their local community, as well as in their church. For Thy Kingdom Come, there was a focus on encouraging prayer for and with under 18's across our social media platforms, and we have continued to engage with the National Toddler Group Month of Prayer in June. This was recognised with Sarah Earnshaw (Children's Adviser) being invited to attend the launch event at the Houses of Parliament. Overall objectives To see growth of 11-17-year-olds (worshipping community statistics) of 1030 by 2026 To see 250/0 growth in new disciples between the ages of 5-11 years {worshipping community statistics) To see 50 % increase in toddler groups that share the gospel To see double the number of bo s in worshi in communities Key Objectives to be achieved by Dec 2024 Actions Making Disciples We will support the making disciples team to resource and equip local churches to.. ake more Sunday services childlyouth- friendly Those participating in the Authorised Lay Ministry (ALM) training course and choosing the elective for Worship Leading have received input from the children and youth team on All Age Worship. A session on 'Children and Worship, was also included in the children's work elective which was well attended this year. The children and youth advisers were invited to deliver training to curates in the diocese as part of their IME2 training, focusing on ministry with children and young people. This training encouraged curates to complete the Children and Youth Ministry Self-Assessment Tool for the parish in which they were training, to help them review current practices and highlight potential areas for development, with a view to considering what they might do once they become incumbents. Launchpad and Learning Community, plus the addition of Youthscape Essentials, have sought to equip and challenge parish clergy and youth leaders in how they can make worship services more accessible for young people, as well as leading provision for their age group that supports their faith journey. The children and youth advisers continue to offer to meet with new clergy soon after they have settled into post. These visits are a useful opportunity to see a snapshot of what is happening in a parish. Clergy are provided with a pack containing vision and strategy documents, resource samples and guidance for workin with their church schools. The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Improve preparation and follow-up for confirmation, retaining confirmation candidates as part of the church's worshipping community A 'how to follow up confirmation, crib sheet has been created and the Parish Renewal team are using this in addition to the youth and children's team. This has been a valuable resource given the conversations that have taken place in previous years. The main confirmation resources that are used by parishes have been purchased and have been made available in the reference library in Clayton House should clergy or youth leader wish to explore new or alternative confirmation preparation resources. A number of churches have been supported in the process of exploring Admission to Holy Communion before Confirmation and have now been authorized by the Bisho Launchpad and Learning Community continue to support parishes in relaunching or starting and establishing youth provisions in a local parish context. In addition, the Youthscape Essentials course has been delivered to offer another option for volunteer youth leader training. The diocesan youth team have offered bespoke support to youth leaders ar)d clergy who have come to them independent of these training and equipping opportunities. In October 2023 the Youth Leader Conference took place in Lancaster and saw a growth in number of over 20 people., 60 youth leaders attended in total. This offered support, input and encouragement to youth leaders from across the diocese in how to meet young people where they are, how to go start something new with young people and how to grow a culture of prayer in their local church, as well as addressing other trainin needs. In March 2023 the children and youth team ran Abide.. Fearless, our annual youth event, where we saw a growth in the number of young people and their youth leaders attending from across Lancashire. Using Sl Michael's High School in Chorley as a venue was a real success and allowed us lo create the kind of spaces required lo enable young people lo explore what it looks like lo live out their Christian Faith fearlessly where they are., school, college, home 8 locally to them. We have heard many positive slories regarding the imp8cI Ihis has had on youth groups, both those that launched post the event and Ihose that were already established prior to allending the event. Again this year we supported the locally run Schools Ventures Residential for Chorley Primary schools al the Anderton Outdoor Activity Cenlre. Partnering with CPAS and local clergy to lead these experiences has created great opportunities for children to explore their beliefs connected to the Easter story and grow in faith. The youth team supported the Waddow Youth Camp led by Bishop Philip during May half-term. This was predominately attended by young people from an Anglo-calholic background and was a valuable connection to continue to grow relationships after churches attended Abide with their young people earlier in the year. In July, officers organised and ran activities for Children in the Churches Together marquee at the Royal Lancashire Agricullural Show. This year these activities were focused around the theme of lackling modern day slavery. Despite the poor weather conditions limiting Ihe show as a whole, this provision along with the present of the Godly Play Bus. offered a fantastic oinl of conlacl for those who do not Equip 50 parishes to set up small youth groups that develop faith Support parishes in providing events and experiences that encourage children and young people in their faith The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 allend a local church lo receive hospilalily and explore the theme from a faith perspective. After the return of national festivals in 2022, we signposted youth groups lo Walsingham Youth Pilgrimage, DTI, Salelliles, Limitless, New Day. and Nefyn Camps this summer, as well as the array ofcamps offered by CPAS and Scri lure Union across the summer months. 2023 saw the continuation of the second series of the 'Youth Work State of Mind, Podcast with the intention of equipping youth leaders in the diocese and beyond. The team have taken steps to develop Youth Work state of Mind I nstagram, building on traction from the Youth Leader Conference and The Gathering to develop and grow the platform as a space for the Christian youth work community to connect, be encouraged and inspired. 2023 saw us engaging once again with the National Toddler Group Month of Prayer as we posted daily prayer activities for Under 5's on social media which received fantastic engagement. These have since been collated into a booklet which is available via our resources area as a download, allowing those not on social media to access these activities and use them. A showcase video featuring the 'School Heritage Days, at St Andrew's Cleveleys was filmed in the Summer and was published on our YouTube channel in September. A second showcase video featuring the Forest Church at St Leonard's Balderstone was recorded in October and published in December. A second series of our podcast for 3-7 year olds, Follow the Son with accompanying resources was written and recorded in 2023. A video was also created which demonstrates how Bible Podlets (our Bible Study and Discussion Podcast for Primary Aged Children) can be used in a group setting to encourage children's workers to consider using it for this purpose. This is Abide on Instagram, TikTok & YouTube continue to grow and gain traction as we seek to build upon the Abide events and to support the faith development of young people directly though the content created. Following conferences and events we have continued to upload suitable content to the Train, Equip, Inspire YouTube account for su ort and trainin ur oses. Pick n Mix, our seasonal youth ministry resource is in the process of being rewritten and developed into 'app style, content and so this year we have added three reworked volumes of Pick n Mix which are available for churches to access for free. This work is ongoing and there is also brand new content around the themes of Stewardship being written ready for release in 2024. The ever-popular Weekly@ lectionary-based materials for churches to use with children's groups and all age congregations continue to be written with the support of guest writers. A one-off special was also created to help churches to celebrate the King's Coronation in May. Weekly@ Summer (Got Your Ticket) was created to help children to explore what being a Christian looks like in different countries around the world, hel Launching significantly more digital content to promote faith development for children and young people, to train leaders and promote church events and activities. This will include.. Youtube content Podcasts Social media interactive resources Produce more parish resources for work with children and young people The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 children to understand that Christianity is a global faith. A new addition to our suite of digital resources for 2023 was a collection of Sensory Stories for Easter and Christmas, for churches to use with children with additional needs. These have been developed in collaboration with the school's team and with the help of Additional Needs S ecialist, L nn Mccann. A Toddler Group Ministry Training session was delivered in Summer 2023 which formed part of the Children's Ministry Elective of the ALM Course, but this could also be accessed by anyone who wished to attend. Off the back of this, several churches have approached the team for further support in developing a vision and strategy for toddler group ministry and for practical advice on how to start one from scratch. The Children's work Adviser connected with Hannah Persaud from the National Growing Faith Foundation to offer advice regarding establishing a national support nefwork for Toddler Group leaders. The first of these online sessions took place in September and will continue to be offered regularly for anyone wishing to participate. In June, in recognition of the work she has done to grow, develop and encourage engagement in the National Toddler Group Month of Prayer, the Children's Adviser was invited to a special launch event and rece tion at the Palace of Westminster. A training session on how we make our Children's Ministry appealing for boys was delivered in Summer 2023 which formed parl of the Children's Ministry Elective of the ALM Course, but this could also be accessed by anyone who wished to attend. This training was well attended and well received. In addition, we delivered the ALM youth elective in Autumn 2023 to six youth leaders, and this training included signposting churches to sports ministry options. Sports Ministry and Sports Ministry resources continLte to be highlighted in mailings and via social media. St Andrew's Church, Livesey is one example of a parish who have engage with this for the first time and ran a successful Ambassador's Football Holiday club in August 2023. KICK supported Abide by running the Football and Active spaces which gave parishes the chance to see how sports ministry could run in a local parish context. To develop this further, for 2024 both KICK and Ambassadors Football have been approached to be involved in the event. Learning Community sessions and training have sought to raise awareness and help parishes consider how they might better engage with boys through their ministr to oun eo Create new or renewed toddler groups that share the gospel as parl of their work Engage with boy friendly ministry Being Witnesses We will support the being witnesses team to resource and e local churches to.. Plant 50 local congregations which reach out to families and young people Officers connect with the Being Witnesses team as necessary and planting new congregations work The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 start 50 new Ghildlyouth-friendly worshipping communities (or congregations) including services in school Develop 50 new sportslactive ministry activities that meet regularly continues lo be ongoing as and when support is sought. Officers have made specific efforts to support the Choir Church project this year. Child and young person friendly worshipping community work is ongoing. Supporting parishes around sports and activity-based ministry is ongoing with KICK and Ambassadors football in uttin to events and conferences. Growing Leaders Support the vocations team to commission 300 leaders and helpers of all ages (with at least 30 % under 25 years old) to share the Gospel with children and young people. We will do this by.. Creating a culture of vocational discernment so that many more can hear a call to work with the young {DoV) All sessions of the Children's and Youth Ministry ALM electives were successfully delivered in 2023. The Children's Work Adviser also delivered a session on All Age Worship for the Worship Leading elective. The Children's Ministry Conference and Youth Leader Conference were both successful and received very positive feedback. Officers have delivered sessions 'And then came Christmas, and 'Reaching the Next Generation, as part of the Urban Evangelist training course., M-.Power. The IME2 training for curates has seen sessions delivered by officers across this year bringing into focus the Diocesan vision priority of 'lnspiring Children & Young People,. Due to the barriers that have been faced in trying to organize a diocesan commissioning service, officers have been tasked by the Inspiring Children and Young People Committee to develop commissioning materials for parishes to use in the new academic year {2024125) with children's and youth leaders potentially in time for Education Sunday in September. The team have offered training to support churches in welcoming those with additional needs and training which supports their Equity, Diversity and Justice strategy. In September, an event titled 'Enriching Children's Ministry with Resources to Support Diversity and Inclusion, was offered to churches and it was advertised that Dr Krish Kandiah OBE, would be visiting the diocese early in 2024. The team are considering ways to grow their training offering in these areas going forward. The Gathering, continues to run in partnership with other youth work organisations and charities, and seeks to support, equip and encourage youth leaders from across Lancashire in their ministry. This provision has invested in and grown a community of people who are committed to working with this age group in the local church. Safeguarding continues to be highlighted in training as appropriate and the Children and Youth Ministry Self- Assessment Tool immediately highlights to the user the importance of safeguarding and where to go for support and guidance should they need it. The team seek to model good practice by putting more robust systems in place to ensure volunteers at Board of Education events have valid DBS Certificates and have com leled mandato safe uardin trainin Developing varied training programmes for those new to this work or in need of refreshment, including basic training and more in-depth training as parl of lay leadership development (Childrenlyouth TeamlDoVI Ensuring that everyone who works with children and young people knows their safeguarding responsibilities lin partnership with DSO) Liturgically Commissioning new and existing leaders and helpers, at Confirmation Services where ossible Holding a Service of Celebration and Re- commissioning for those who minister to the young The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 To develop and implement a project that is designed to grow work with 11-17 years. See Launchpad, Youlhscape Essentials and Learning community notes above. The development of a new children's and youth strategy to support growth of under 18's ministry has been worked on with a view to an application to national church in early 2024 for funding. Should the application be successful, the beginnings of that ro ect will be in to take sha e later in 2024. School Ob'ectives for 2024 Our schools to be built around the key Christian values and qualities of love ho race and service and a Vision rooted in the Bible DBE Actions Reference is made lo the National and DBE vision in all Induction training materials. Key Christian values and their Biblical roots are included in all Iraining related lo the Christian Vision of the school. The key focus oflhe new SIAMS Framework 2023 is the Christian vision of the school being lived out. This has led lo an increase of the content of SIAMS training being focused on the ways in which the school's Christian vision influences every aspect of the life of the school. The SIAMS reports cleady record thal the impact of the Christian vision of the schools is very strong. Associate advisers continue with pastoral calls and SLA visits. How schools are living out their Vision and values is a feature of Initial Visit discussions. Prayer requests are discussed with Headleachers, and advisors regulaily pray for senior leaders, staff, and the children. Consultancy visits to high schools including tailored resources, Chaplaincy and Religious Education networks look place through the year. Embody a vision shaped by the personal faith and commitment of their leaders The Head Teachers conference 2023 focused on the theology of Christian leadership and vision. Each module of the conference was well allended. The Induction programme for new Headleachers and Deputy Headteachers provides opportunities for school leaders to explore their own faith journey and consider how faith impacts on their leadership. The Head teacher and senior leaders networks focus on servant leadership, faith and prayer. Governor CPD explores the dislinclive nature of Church school governance and the importance of faith and prayer in fulfilling the governor role. The DBE has a policy that all applicants for the position of Headteacher and Deputy Headteacher in Diocesan schools must have a faith reference. All the 'Called to training opportunities (inc. Called to Serve, Flourishing Schools, Academic and Rigorous) and Direct Learning training programmes have been delivered and a new Headleacher Induction Booklet and mentor scheme is in place. This was a series of High School trainings. A programme of Retreats and Quiet Days has taken place DBE Services Christian Leadership programme ran again this year in collaboration with other dioceses and is oversubscribed annuall 10 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 To embody a vision rooted in the bible All material produced for primary schools Collective Worship and RE is clearly rooted in scripture. All courses are underpinned by biblical lexl and make reference lo scripture and explore how the conlenl of the course is onnected to scripture. The new Worship Together online series of Collective worship videos exploring God's Big Story is extremely popular. Viewing exceeds 150 every week. Enable and encourage a praying and worshipping community where distinctly Christian celebrations are integral lo the learning experiences of 811 within Ihe school community New resources created to support schools in celebrating the Coronation of King Charles. Emphasising the distinctly Christian elements of the ritual and traditions. Bishop's Harvest Appeal 2023, emphasis of Christian Celebrations via social media, and new collective worship materials using traditional Christmas Carols and Easter Hymns as a starting point. The DBE have created significant resources for the National Initiative 'Faith at Home, lo support Key Christian Festivals and days of national significance Active engagement with National Networks, and Local Networks continues {NASACRE, CEEFEL, Local SACRE, CEFL'S International Diversity Network) facilitating prayer and worship on a wider platform beyond Blackburn. Ensure Religious Education is al the heart of the curriculum and is a core subject Questful RE is now used by Church schools in the Blackburn, Chester, Carlisle and Liverpool Dioceses. Blackburn and Darwen SACRE adopted Questful RE as the LA Agreed Syllabus. There are over 3000 user accounts accessed regularly. The syllabus has been reviewed and updated throughout Ihe year with new resources and bespoke films being added. SIAMS reports consistently Ihal the standard of achievement in RE is high and RE is considered to be a core subject in the curriculum. Cluster meelings and conferences are very well attended indicating that schools give priorily to the subject. Illuminaling Pathways has been moved to a new website along with the guiding lighl worship resources. This makes resources accessible lo all and removes the dependency on a Ihird-party supplier. The curiiculum has been supplied to other dioceses following requests from them for additional resource for RE and worship Recognise the presence of God in the uniqueness of each individtjal and in each person's specific talents and gifls Significant development work on equity, diversity and justice (EDJ) to ensure that all stakeholders are treated with dignity and respect and become the person God created them lo be. A suite of courses was designed and delivered. Between 2022 and 2024, 240 delegates have attended the EDJ conferences, 73 schools have received in-school training on EDJ, and 36 schools have taken part in EDJ workshops run by DBE. 3 Headteachers are mentors for CEFL'S Leaders like Us Programme which supports senior leaders from UK minority Ethnic background5 inlo Headship. 1 senior leader was a participant on the programme. Develop a broad communiiy open lo the world in which we live. which seeks lo change it for the better DBE encourages schools lo use resources such as Picture News lo enable children to engage with wider issues in Ihe world. There is a strong emphasis in all our schools on equipping pupils with the skills of courageous advocacy lo deepen their understanding and knowledge of Injusti￿ and encouraging them to be agents of change in the world. The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 SIAMS expects all church schools to be involved in social action as evidence that they are living out the Christian Vision of the school. Questful RE includes the investigation of Chrislianily as a worldwide faith Engagement with schools using social media has increased, with Twitter regularly used to praise success Celebrate success and treat failure with compassion Successful schools are regularly invited lo share their good practice with other schools by providing inputs al DBE training courses. Schools are sent letters of congratulations following inspections and visits are made to school in difficult circumstances. Staff re ularl attend celebration events in schools. Worship materials and RE Curriculum conlenl support schools in fulfilling these points Support their alumni in finding ways to continue their faith journey, and to provide a pathway or signpost for Ihose alumni looking to re-engage with faith Be strong and sustainable presences in their community with a structure that best serves the needs of the children and young people Schools continue lo 'go the extra mile, in serving their children. families and local communities. Many schools proactively take part in local projects. Increasingly schools are helping families lo access informalion and help regarding housing, benefits, health care etc. This also includes the increase of support that schools need to provide for pupils with SEND needs. Schools involved in the Disadvantaged and Poverty Action Research Programme are developing bespoke strategies to support the needs of their children, families and the communit DBE continues to encourage schools and churches toworship and work together. Many schools regularly allend mid-week worship in churches with their local congregations. Schools and churches together run holiday clubs and have set up afler school family worship sessions. Seek to work in collaboration with churches in delivering Vision 2026 The new 'Living Well Together.. Developing Church School and Community Links. course will support schools lo strengthen their relationshi with church and communit School Buildin Ob ectives for 2024 Ensure that school buildings are developed and maintained lo best meet the needs of pupils DBE Actions The SCA system has been run effectively this year alongside partner company DBE Services. Much of the projecls delivered are essential works lo ensure schools remain open and meet Health and Safely Regulations. A full programme of capital work has been planned and delivered to meet school needs. As in previous years, the level of need outweighed the funding envelope by around three times the amount with much of this continues lo be essential works and ve few 'nice lo have, ro ecls. Regular meetings lake place with the school place planning team in Lancashire and detailed conversations look place with Blackburn with Darwen over fulure pupil number projections. This has been highlighted for three of our schools lo expand in 2024125 and the board has been actively engaging with delivery of these projects Seek opportunities for expansion of existing church schools or new church school provision Ensure the correct treatment of school assels when schools close or relocate A number of live cases continue lo be handled by the DBE and is an area of significant work. These are often cases of historic incorrect Irealmenl of land. The DBE has sought lo register a number of lilles with the Land F4egistry for school properties 12 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 The DBE continues to research trusts and land of church school to build a complete picture of the school eslale and ownershi of land Chaplaincy Ob'ectiveg for 2024 We want lo help young people accept the salvation offered through Jesus, death on the cross and embark on a lifelong journey as a disciple DBE Actions Young people are being connected with and encouraged to understand who Jesus is through active chaplaincy. This is happening and we are working closely and have good relationships with all 3 universitie5= UCLAN, Lancaster Universit Universil of Cumbria UCLAN and Preston Minster are working well al Ihis. The shared chaplaincy model began there first. The first year was a success bul the post holder moved to take up a job in Manchester with a church. We were involved in recruiting the replacement and she has begun in post Se tember 23 and made a successfvl start. Chaplaincy for Lancaster Universities was reimagined lo the shared model th81 matches UCLANIPreston Minster early in 2023 and a new style was introduced where the university chaplain is line managed by a local church thus having a peer group and reducing the previous silo situation. Two large local churches of differing tradition, with good sludent populations, were approached and agreed to host the chaplain for the Iwo universities. The vision sees the chaplains supporting each other spiritually and physically covering for absence, helping at busy times elc. Two recruitmenl rounds for the chaplain at Ihe University of Cumbria have led to a successful appointment and she lakes up the role in September. The role is based at Lancaster Priory. We want to help students in our universities to be discipled, nurtured and challenged in Iheir faith, encouraged to share their faith, and develop to lead others in discipleship, witness and service. We want to help chaplains that enable the people of God in our High Schools and Universities to live out the Christian life and witness to the presence of Jesus Lancaster University is yet lo appoint after two rounds of recruitment. The process is ongoing together with St Thomas Lancaster Nb. The post at Lancaster University became vacant in 2023 thus allowing this symbiotic relationship We want to help young people transition from a school place of worship to engagement in a Church of England mulligeneralional worshipping community that accessible lo the young School chaplaincy is still supported. Regular half lemily sessions for Worship coordinators are organised by the Diocesan Youth Advisor.The DBE was involved in the recruitment for the chaplain to Archbishop Temple Highschool. The strategy being employed.. hosting Ihe chaplain role within large local Anglican churches is modeSled on the university chaplaincy al Dundee. The transition is thus organic with links built in between chaplains al the universities and local churches.11 is envisaged that this will ease the transition between school and university setting churches. The Minster Preston, Lancaster Priory, Sl Thomas Lancaster. The understanding is that the chaplains signpost lo whichever churches are most appropriate not only recommending their link church always bearing the ease of transition in mind Future Objectives The objectives for the board of education remain as above until 2024 13 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 POST BALANCE SHEET EVENTS In August 2024 there was adverse publicity for an associated charity around a historic safeguarding issue previously reported lo the charity commission. This has been reported again lo the charity commission due lo the risk of the reputational harm from the publicity. In August 2024, a non-recenl safeguarding disclosure involving an employee deployed at an associated charity came to light, resulting in a police ir)vestigation. This incident has been reported to the Charity Commission due to the potential reputational harm stemming from any publicity. The company is cooperating fully with all relevant authorities and has taken appropriate measures lo address the situation in accordance with established safeguarding protocols. FINANCE REVIEW Financial Performance During the year lo 31 December 2023 the Charity made a net surplus of £396k against a deficit of £278k in 2022, this is due to a gain on investments in the year of £102k and the release of a creditor regarding the sale of Out Rawcliffe school of £299K. Principal Funding Sources There is an annual grant agreed in advance by the Blackburn Diocesan Board of Finance Limited as agreed by the Diocesan Synod. A grant of service is provided in addition for the provision of finance. The Board is also in receipt of funds allocated from the BDBF Reslricled Funds. Total funding from these sources for the year ended 31 December 2023 is £324,061 (2022.. £359,360). Service level agreements to provide support services to schools £268,638 (2022-. £278,862). Total interest and dividends income is £409,000 (2022.. £153,000) representing 290/0 of total income (2022.. 12%). This is due lo investing in Property Shares in CCLA to generate income. The Blackburn Diocesan Board of Finance grants represented around 23 /0 of the lolal income of the charity for the year, equally 19Q/o of Ihe income came from setvice level agreements and interest and dividend income was 29 % . During the year a gift aid donation of £153,80812022.'£144,321 } was received from DBE Services Ltd. Significant expenditure The charitable company employs staff lo support schools in their maintenance and building projects. Dur(ng the year £28,437 {2022.' £40,117) was spent on directly undertaking activities in this area which includes generating voluntary income. Additional school support is provided by staff and consultants for the development and delivery of religious education, school vision and ethos and collective worship. This may be in the form of direct support for schools or running training courses and events for the schools. During the year £421,945 of school and governor support (2022.. £443,340) was spent on directly undertaking activities in this area. Youth and children's work occur both in schools and parishes. Youth and children's work directly undertaken 8clivities cost £169,13712022.' £181,453). The charitable company also supports university chaplains and this support amounted to £59,426 (2022.. £89,591 } of activities directly undertaken. Balance Sheet Position Net assets at 31 December 2023 are £6,134,00012022'. £5,738,000) which is made up of designated funds of £2,990,000, restricted funds of £718,000,endowment funds of £92,000 and unrestricted funds of £2,334,000. Within the balance sheet, are the following assets and liabilities relating to Barchester. (See page 281. Cash onde osit and at bank is held in se arate bank accounts as client funds. £000 Debtors less than 1 ear 1,436 Debtors reater than 1 ear 133 Cash on de osil 4,525 Cash al bank 2,396 Creditors less than 1 ear 8,490 Investment policy The charity utilises the CBF fund with CCLA for investments. This ensures ethical inveslmenl. as investments are held in companies which have high Standards of corporate governance and act in a responsible way towards stakeholders. 14 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Unrestricted and restricted funds are invested to balance income, liquidity and the reimbursement of capital. The investment policy for long-term funds is aimed primarily al generating a sustainable income with due regard to Ihe need for preservation of capital value. Reserves policy The 10181 funds of the charitable company as at 31 December 2023 are £6,134,000, of which £718,000 are reslricled and £92.000 are endowment funds. The reserves of the company provide working capital for the activities of the Board. The Board also requires funds lo be available to provide assistance to schools for their contribution lo building projects and lo ensure continued operation if income is disrupled. The trustees have reviewed the charity's r5eeds for reserves in line wilh the guidance issued by the Charity Commission. They have agreed to sel a reserves figure equivalent of 20010 of predicted income for SCA and DFC expenditure costs on behalf of schools £1,335,000 and three to six months budgeted running costs for 2023, £580,341 (six months). The total approved level of reserves is £1.915,341. The total value of free rese￿eS (general reserves less assets used in Ihe charity and designated fund and any pension adjustment) is £1,826,000. The level of free reserves is £89,341 below the approved level. The directors al their summer meeting will review free reserves and designated funds along with plans for Ihe future. The level of designated funds at Ihe year end is £2,990,000 {2022.' £3, Y09, OOOJ. Material designated funds include the New Opportunity Fund al £340,798 for school buildings support and Ihe Elmslie Fund at £470,706 for educational purposes in the Blackpool area. Financial assistance and grant making policy Organisalions must make applications to the Board of Education Executive. The Executive considers these in the light of their benefit for promoting Christian education within the Diocese. Consideralion is also given to the financial circumstances of the organisation applying. Grants were 14010 of lolal expenditure. Related parties Blackburn Diocesan Board of Finance is a registered charity and the financial arm of the diocesan synod.11 provides a grant lo support Ihe work of the Diocesan Board of Education and lo enable the Diocesan Board of Education to undertake children and youth work. Cidari is the diocesan mulli academy trust which owes £179,608 to the Diocesan Board of Education for the initial start- up of the Irusl. DBE Services Ltd is owned by six dioceses, one of which is Blackburn Diocesan Board of Educalion and il provides total property maintenance to schools and manages the school condition grants. Directors the chair of the board David Picken is also a director of the Diocesan Board of Finance. Canon Stephen Whittaker is a director of the Diocesan Board of Education and is the diocesan secretary of the Diocesan Board of Finance. 15 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 PRINCIPLE RISKS AND UNCERTAINTIES The Iruslees of the charitable company have overall responsibility for ensuring that the charity has an appropriale system of controls, financial and otherwise. The systems of internal control are designed to provide reasonable, bul not absolute, assurance against material misstatement or loss. There is no internal audit function as il is not considered an efficient use of the resources of the charity. They include.. A strategic plan and annual budget approved by the trustees., Regular consideration by the Board of Education of financial results and variance from budgets; Delegation of authority and segregation of duties-, Identification and management of risks. During the year the trustees have further developed their risk management process to assess and document business risks and implement risk management slralegies. This involved assessing the types of risks the charity faces, priorilising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. This process has drawn on the on-going consideration of business risk, which already forms a significant aspect of the trustees, duties. An annual meeting has been pul in place lo review the risks of the Blackburn Diocesan Board of Education. During the year consultants and advisers have been engaged to assist in the management of on-going work where there has been identified need. The key risks, which may impact on the charitable company, are= risks Miti ations Loss of grant funding from the DBF-, The company holds sufficient ieseNes to cope with funding shortages and would be able lo restructure 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 to restructure the business lo manage such 8 reduction A tighl labour market leading lo staff shortages., Effective recruilmenl campaigns and reviews of em ment benefits ho e lo tackle this need An increase in statutory duties that cannot be recharged to schools. Use of reserves and clarily in SLA agreements to reduce risks. Impact on risk and risk management The company risk register already contained income losses and actions associated with them and has been updaled to include loss of income from the DBF. The company continues to be strong and anlicipales that even with no DBF grant and reduction in investments and income, costs can be managed lo ensure continued viability. STRUCTURE GOVERNANCE AND MANAGEMENT The Board of Education is a statutory body under the Diocesan Boards of Education Measure 2021. This requires every diocese lo have a Board of Education which has responsibility for overseeing the work of Church Schools and being responsible for managing Education Charitable Trusts. The Board of Education was incorporated in November 1955 and is a company limited by guarantee. Those persons who are normally referred lo as members of the Board of Education are in company law the Directors of the Board and Trustees in charity law. The Trustees present their report and audited financial statements for the year ended 31 December 2023. The Trustees and the Trustees, Report constitute the Directors and Directors, Report for Companies Act purposes. The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, the Charities SORP (Second Edition, effective 1 January 2019) and applicable accounting standards FRS102. 16 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Organisation The Board of Education, as defined in statute, has overall control of the activities of the Company. The Board operates with four sub-committees. The finance, staffing and resources committee is responsible for all financial matters across the work of the Board of Education. The schools work is split over two commiltees with school Christian ethos development considered by the Dislincliveness Committee and the other aspects of work considered by the School Strategy Committee. 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 membership of the Diocesan Board of Finance) annually and the Director of Education also reports lo Ihe Bishop's Council. Method of Appointment of Trustees The trustees are appointed in the following way.. The Chair of the Board is nominated by Ihe Diocesan 8ishop. At least 4 bul not more than 5 members appointed by the Bishop, at least 4 but not more than 5 members elected by Diocesan Synod and at least 4 bul not more Ihan 5 members co-opled by the DBE The trustees elected by synod are elected every three years. Induction and Training of Trustees On induction there is a meeting with prospective Iruslees lo explain their roles and responsibilities. They are advised of the structure of Ihe Blackburn Diocesan 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 increments are agreed by the Chair of the Board. Custodian Trustee The charitable company is the custodian Iruslee for all Voluntary Aided Church of England Schools in the Benefice area (Diocese of Blackburn) except in cases where it is the actual Iruslee either by right of the trustee document or following an order under S86 of the 1944 Education Act. Under Ihe 2021 Diocesan Board of Education Measure, the goveming body or (in the case of an Academy) the proprietor of a church school which is on land in which a freehold or leasehold interest is held on trust for the purposes of a church school musl obtain the consenl of the DBE before entering inlo an agreement or arrangement in connection with an alteration to or repair Ihe premises of the school. TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accoidance wilh applicable law and regulations. Company law requires the trustees (as Directors) to prepare financial statements for each financial year. Under that law the Iruslees have elected lo prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Praclice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial stalements unless they are satisfied Ihat they give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for Ihat period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently., observe methods and principles in the Charities SORP. make judgements and eslimates that are reasonable and prudent., stale whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalements., and prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charitable company will continue ils aclivilies. The trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable Ihem lo ensure that Ihe financial statements comply wilh the 17 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them lo safeguard the assets of the charitable company and to prevent and delecl fraud and other irregularities. The trustees are 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 statements may differ from legislation in other jurisdictions. STATEMENT OF DISCLOSURE TO THE AUDITORS So far as the Directors are aware.. there is no relevant audit information of which the charitable company's auditors are unaware, and we have taken all the steps that we ought to have taken as Directors in order to make ourselves aware of any relevant audit information and to establish that the Gharitable company's auditors are aware of than information. APPOINTMENT OF AUDITOR The appointment of the auditors lo the BDBE will be proposed al the Annual General Meeting. ADMINISTRATIVE DETAIL The Blackburn Diocesan Board of Education Limited (by guarantee) hereafter referred to as the "charitable companv, is a registered company and is registered with the Charity Commission. The company was incorporated on 30 November 1955. The Iruslees, who are also directors for the purposes of company law, present their Iruslees, report, together wilh the audited financial slalemenls, for the year ended 31 December 2023. This report conslilutes the Strategic Report and the Directors, Report required under the Companies Acl 2006. Charity Registration number 1020101 Company registration number 557954 Company Secretary Mr I Parks Appointed I September 2023 Direclorstrrustees Mr JMP Hewill Miss J Snape Mr R Jones Rev Canon A Holliday Rev P R M Venables Mrs A C Abernethy Rev Canon David Arnold Mrs D L Melcalfe Venerable D A Picken Rev S Lloyd Rev C Abbott Ms Y Arshad Rt Revd P North Mr S Whittaker Appointed 25 April 2023 (Ex officio) Appointed 1 September 2023 Appointments are made under the Diocesan Board of Education Measure 2021 Advisers Solicitors Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bankers National Weslminsler Bank 35 King William Slieel Blackburn BB17DJ Insurers Ecclesiaslical Insurance Group Beaufort House Brunswick Road Gloucester, GL1 1 JZ 18 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Investment Advisors CCLA Investment Management Ltd Senator House, 85 Queen Victoria Street London EC4V 4ET Registered Auditor Haysmacinlyre LLP 10 Queen Street Place London, EC4R 1AG Registered Address Diocesan Office Clayton House Walker Office Park Blackburn BB12QE By order of the board The Venerable David Picken Chair of the Board of Educalion Blackburn Diocesan Board of Education Limited Clayton House Walker Office Park BLACKBURN BBI 2QE 16 September 2024 19 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 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 Education forthe year ended 31 December 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary 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 Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 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 opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) 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. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other 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 concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. 20 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 the information given in the Annual Report (which 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 consistent with the financial statements., 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, report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company, or returns adequate for our audit 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 certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit Responsibilities of trustees for the financial statements As explained more fully in the trustees, responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes of company law} 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to 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 statements. We also considered other factors such as income tax, payroll tax and sales tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements {including the risk of override of controls) and concluded that the risk was low. Audit procedures performed by the engagement team included.. Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud., Evaluating managemenl's controls designed lo prevent and detect irregularities., Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions.. and 21 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Challenging assumptions and judgements made by management in their critical accounting estimates Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstalemenl in the financial slalements or non-compliance with regulation. This risk increases the more Ihal compliance with a law or regulation is removed from the events and transactions reflected in the financial slalements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresenlalion. A further description of our responsibilities for the audit of the financial slalements is located on the Financial Reporting Council's website al.. rn.frc.or .uklaudilorsres onsibililies. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audil work has been undertaken so that we might slate to the charitable company's members those matters we are required to slate to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Adam Halsey (Senior Stalulory Auditor) For and on behalf of Haysmacinlyre LLP, Slatulory Auditors Date.. 30September 2024 10 Queen Street Place London EC4R 1AG 22 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023 UnTe5trlcted Note General Fund £000 Deslgnated Fund £000 Restricted Funds £000 Endowment Funds £000 Total 2023 £000 Total 2022 £000 Income and endowments from- Donations alld legacies Charitable activities Other trading activities Investments 327 461 310 23 637 484 374 513 511 36 16 563 297 Total 1,301 36 349 1.686 1,186 Expenditure on.. Raising funds Charitable aclivilies 1,199 52 139 1,390 1,170 Total 1,201 52 139 1.392 1,172 Net incomellexpendlturel before Investment gains 700 {161 210 294 14 Nel Ilossesll gains on inveslmellls 94 102 12931 Net Incomel{expendlturel 194 {161 210 396 12791 Transfer between fLEnds 13 139 11031 1361 Actuarial gainslllossesl on defined benefit penslon schemes Net movement In funds 333 11191 174 396 {2781 Total funds brought fO￿ard 13 2,001 3,109 544 84 5.738 6,016 Total funds carried forward 13 2,334 2.990 718 92 6,134 5,738 All aclivities derive from continuing activities. The note5 on pages 27 10 42 form part of these financial stalements. Details of comparative figures by fund are disclosed in note 23. 23 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2023 2023 £000 2022 £000 Total income Total expenditure 1,686 11.392) 1,186 11,172) Operaling profivldeficit) for the year Net (losses)Igains on investments Actuarial loss defined benefit scheme 294 102 14 (293) Net lexpenditurellincome for the year 396 (278) 24 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 BALANCE SHEET at 31 December 2023 Nole 2023 £000 2022 £000 £000 £000 Fixed assets Tangible assets Investments 508 2,274 528 2,170 2,782 2,698 Current assets Debtors (amounts receivable after more than One year £323,000 (2022.. £371,00011 Cash on deposit Cash al bank and in hand 10 2,116 2,272 11 7,299 3,109 3.994 8,499 12,524 {9,033) 14,765 (11,590> Creditors: amounts falling due within one year 12 Net current assets 3,491 3,175 Total assets less current liabilities Creditors: amounl5 falling due after more than one year 6,273 5,873 12 (139) (135) Net assets 6,134 5,738 Fund balances Endowment funds: (including investment revalualion resejve of £64,268 {2022-.£56,256)) Restricted income funds (including investment revaluation reserve of £31,252 (2022.'£29,979)) Unrestricted income funds: General funds (including revaluation reserve ol £906.998 (2022'.£781,720}) Designated funds (including revaluation reserve 13 of £nil (2022.'£nil)) 13 92 84 13 718 544 13 2,334 2.001 2,990 3,109 6,134 5,738 The notes on pages 27 to 42 form part of these financial statements. These financial statements were approved by the board of directors and were signed on its behalf on 16 September 2024 by.. The Venerable David Picken Chair of the Board of Education The Blackburn Di0￿san Board of Education is a company limited by guarantee registered in England and Wales (no 557954) 25 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 CASH FLOW STATEMENT for the year ended 31 December 2023 2023 £000 2022 £000 Cash loutflow}l inflow from operating activities Nel lexpendilurellincome Nel Igainslllosses on investments Depreciation Dividends and interest income (IncreasellDecrease IF) debtors current assels Decreaselllnoreasel in debtors long letm assets (Decreaselllncrease in creditors current liabilities (Decreaselllncrease in ¢r8dilors long term liabilities 396 (102) 26 {563) 106 48 (2,557) (278) 303 25 {297) 575 39 226 (12) Nel cash loulflowl l inflow (2,642) 581 Cash from investing activities Dividends and interest income Purchase of tangible fixed assets Purchase of investments 563 (6) 297 (10) Net cash inflowlloutfiow) 557 287 IncreasellDecreasel in cash in the year (2,085) 868 Cash and cash equivalents at the beginning of the year 12,493 11,625 Cash and cash equivalents at the end of the year 10.408 12,493 Analysis of cash and cash equivalents 2023 £000 2022 £000 Cash on deposit Cash al bank and in hand 7,299 3,109 3,994 8,499 10,408 12,493 The charitable company does not have any debt and as such no reconciliation of net debt nole has been presented. 26 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 NOTES TO THE FINANCIAL STATEMENTS (forming part of the financial statements) Accounting policies Basis of preparation and going concern The financial statements have been prepared under the historic cost convention, with Ihe exception of investments which are included on a market value basis, and in accordance with Ihe Companies Act 2006, the Charities SORP {Second Edition, effective 1 January 20191 and applicable accounting standards FRS102. The charitable company manages ils activities in line with income received. As a consequence, the Truslees believe the charitable company is well placed lo successfLtlly manage ils risks. After making enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources lo continue in operalional 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 believe they have sufficient reserves lo allow lime lo adjust should grant funding for other operations reduce. Accordingly, they continue to adopt the going concern basis in preparing the Trustee's report and financial stalemenls. The Trustees believe that the charitable company is a public benefit entity. The principal accounting policies and estimation techniques are as follows. Critical accounting judgements and key sources of estimation uncertainty In the application of the accounting policies, trustees are required lo make judgements. estimates, and assumptions about Ihe carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors thal are considered lo be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisioris to accounting eslimales are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if Ihe revision affected current and future periods. Judgements made by the trustees, in the application of these accounting policies Ihal have significant effect on the financial slatements and estimales wilh a significanl risk of malerial adjustment in Ihe next year are deemed lo be in relation to the deprecialion rates of tangible fixed assets and are discussed below. In the view of the truslees. no assumptions concerning the future or estimation uncertainly affecting assels or liabilities at the balance sheet dale are likely to result in a material adjustment to Iheir carrying amounts in the next financial year. Fixed assets and depreciation Assets with a value in excess of £500 are capilalised. Depreciation is provided by the company lo write off Ihe cost less the estimated residual value of tangible fixed assets by equal instalmenls over their eslimaled useful economic lives as follows: Freehold property Re-modelling Computers Fixtures and fittings Office equipment The charitable company will perform annual impairment lesling of assets on which depreciation is nol provided in accordance with FRS 102 to determine whether residual disposal values of Ihese assets in aggregate continue lo exceed carrying value. Fixed asset investments 20/0 per annum 25% per annum 5_ 100/0 per annum Fixed asset investments are included in the balance sheet al market value and the gain or loss taken to the Statement of Financial Activities. Stocks Stocks are slated al the lower of cost and net realisable value. Debtors Debtors are slated al amounts receivable less any provision for uncertain recoverability. 27 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Deferred Payment Arrangements Deferred Payment Arrangements are agreements to defer paymenl of the governors, liabilities on buildings projects under the Barchester Scheme. Creditors Creditors are stated at amounts payable. Income: Grants received and donations All grants and donations are recorded as income when receivable. Where grants have conditions relating to future accounting periods Ihey are treated as deferred income and recognised in those accounting periods. Other donations are recorded as income when receivable. Grants received from the goveinmenl on behalf of the Governors of schools are not recorded as income in these accounts as they are Irealed as being Ihe income of Ihe Governors of the schools. School Condition grants are no longer allocated lo individual schools. This money is "paid lo eligible bodies responsible for maintaining school buildings" who are the Governors. The grant is calculated using a formula largely based on 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 of funding and the priorilisalion of projects is managed by and through D8E se￿1¢es who involve an independent advisor to advise on the assessment of the bids. Funding is allocated on an agreed set of principles with the highest priority being keeping all schools open, warm and safe. The Board of Education has relatively little discretion in which projects lo fund as this is determined by the stale of Ihe buildings. Fees and Chaplaincy income Fees received are recognised on an accruals basis in the period to which they relate. se￿ice level agreement income From April 1999 schools have been invoiced for the Sltpport services provided by the Board of Education. Prior lo this school support contributions were voluntary. Income is recognised on an accruals basis. Arrangement fee income Arrangement fees are payable on loans arranged for schools by the Board of Education. The arrangement fee is deferred over the life of the loan. Investment income Interest and dividends are recognised on an accruals basis. Grant from Blackburn Diocesan Board of Finance 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 addition lo Cash for the provision of finance. Expenditure: Grants payable Grants payable are debited lo expenditure when the charitable company has a constructive obligation lo pay. Barchester Scheme Building work The Board of Education has Iradilionally been involved in helping voluntary aided church school governing bodies with projects involving major funding streams from the Department for Education {DfEI. This entails paying contractors, and professional fee invoices on behalf of the governing body concerned, claiming the appropriate grant {900/0) from the DfE, and collecting the governors, (and sometimes the local authority) contributions. The Board might also have agreed deferred payments arrangements lo the governors (10 % ) lo such projects. The gross turnover of such activity can amount to considerable sums, where a major new build is concerned. The payment of such invoices is not accounted for as expenditure of the Board. Normally, the Board has received grant funding or the governors, contribution in advance. but where this is not the case il is shown as the making of short-term cash-flow deferred payments for the governing bodies concerned. These are repaid when the appropriate DfE grant and governors, contributions are received. Essentially the Board is acting as the agent of the appropriate governing body in these transactions. The Board also acts as an agent with DfE arrangements for making 'volunlary aided school annual devolved formLfla capital grants, available to schools in advance of project spend or approval. 28 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Ouring 2023 Ihe total expenditure was £11,445,729 (2022.. £7,914,196). This expenditure has not been recognised in the financial statemenls of the company in line willi FRS 102.23.4. Cost of Activities The cosl of running each department of the Board is recognised on an accruals basis. Governance and support costs Governance costs consist of the audit fee and the cost of preparing the accounts. Board of Education administration 5UPPOrt costs are recognised on an accruals basis. Support costs are apportioned on a basis consistent with the use of resources. Taxation The Blackburn Diocesan Board of Education Limited (by guarantee) is considered to pass Ihe lesls sel out in paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly. the charity is potentially exempl from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Pensions The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in independently administered funds. The amount charged in the slalemenl of financial activities represents the contributions payable to Ihe scheme in respect of the accounting period. Some of the charilable company's staff are members of the Church Workers Pension Fund. The costs charged as expenditure represent Ihe charitable company's contributions payable in respect of the accounting period, in accordance with FRS102. Three employees are members of Ihe Church of England Funded Pension Scheme. At 31 December 2023 the Board of Education is responsible for its own liabililies on this scheme and as such the liability is held on the balance sheet. There is no liability al 31.12.23 Fund accounting Funds held by the charitable company are either.. Unrestricted general funds- these are funds which can be used in accordance with the charitable objects at the discretion of the Iruslees. Designated funds - these are funds sel aside by the trustees out of unrestricted general funds for specific future purposes or projecls. ReslrFCted funds- these are funds that can only be used for particular restricted purposes within the objects of the charitable company. Reslriclions arise when specified by the donor or when funds are raised for particular reslricled purposes. Endowment funds This is capital, held in perpetuity to create income for specified purposes. Further explanation of the nature and purpose of e8ch fund is included in the notes lo the financial statements. Vvhere a grant or donation is received lo fund a capital item or where an asset is donated, if there is an obligation relating to the future use or retention of the relevant asset, the balance relating to that asset is held within restricted funds as long as that reslriclion exists. Where there is no such restriction, the income relating lo the purchase of capital items is transferred to unreslricled funds in the Slatement of Financial Aclivilies. Realised gains on schools Realised gains on schools Tepresent amounts which accrue lo the Board of Education from the sale of church schools, land or buildings and which have been received in the period. Unrealised gains / losses on investments Unrealised gains and losses on investments represent the aggregate change in market value of investments since the previous balance sheet date. Realised gains / losses on investments Realised gains or losses on investments relate to actual gains or losses arising in Ihe period on disposal. 29 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Remuneration of trustees No trustee has received remuneration from the Board of Education during the year (2022.. £nil). Expenses reimbursed to Irustees during the year amounted to £2,098 (2022.. £nil). Stsff numbers and costs The average number ofpeople employed during the yearwas 15 (2022.. 18). The average number of full-lime equivalent persons employed by the charitable company during the year, analysed by category, was a5 follows= Number of employees 2023 2022 Director ol Edu¢alion Deputy and Assistant Directors Principal Schools Adviser Schools Improvement Officers Youth and Children's Chaplainsl Officers Adminislralion and Secretarial 18 The aggregate payroll costs of these employees were as follows.. 2023 £000 525 43 74 2022 £000 498 44 97 Wages and sa18ries Social security costs Other pension costs 642 639 During the year no employee received a salary in excess of £60,000. In 2022 there was one employee in Ihe salary band £60,00010 £70,000, with £nil pension conlribulions. Remuneration of key management personnel Key management personnel are deemed to be those having authority and responsibilily, delegated lo them by the Iruslees, for planning, directing and controlling ihe activities of the charitable company. During 2023 they were.. Chief Executive officer lain Parks Deputy Director Sally Schofield Remuneration, pensions and expenses for these employees amounted to £102,40912022.' £89,976). 30 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Pension schemes Group Personal Pension Plan Blackburn Diocesan Board of Education (DBS) participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of Ihe scheme separately from those of the Employer and Ihe other participating employers. CWPF has two sections.. the Defined 8enefits Scheme the Pension Builder Scheme. which has two subsections., a deferred annuity section known as Pension Builder Classic, and, a cash balance section known as Pension Builder 2014. Pension Builder Scheme Bolh sections of the Pension Builder Scheme are classed as defined benefit schemes. Pension Builder Classic provides 8 pension. accumulated from contributions paid and converted inlo deferied annuity during employmenl based on terms set and reviewed by the Church of England Pensions Board from lime lo lime. Discretionary increases may also be added, depending upon investment returns and other factors. Pension 8uilder 2014 is a cash balance scheme that provides a lump sum which members use lo provide benefits at reliremenl. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before reliremenl, depending on investment retLsrns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. There is no sub-division of assels between employers in each section of the Pension Builder Scheme. The scheme is considered lo be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to atlribule the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounled for as if Ihe Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are the contributions payable (2023.. £6,529, 2022.. £22,633}. A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as a131 December 2019. For the Pension Builder Classic section, Ihe 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose lo grant a discretionary bonus of 6.7 % to both pensions not yel in payment and pensions in payment in respect of service prior to April 1997,. and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 50/0 (where usually il would be calculated based on inflalion up to 2.50/01. This followed improvements in the funding pos11ion over 2023. There is no requirement for deficit payments at the current lime. For the Pension Builder 2014 section, the 2019 valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requiremenl for deficit payments al the cuirenl time. The next valuation is due as at 31 December 2022. Calculations for this are currently under way. The legal Structure of the scheme is such that if another employer fails, Blackburn Diocesan Board of Education {DBS> could become responsible for paying a share of Ihe failed employerfs pension liabilities. 31 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Church of England Funded Pension Scheme (CEFPS) Blackburn Diocesan Board of Education participales in the Church of England Funded Pensions Scheme for slipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies. Each participating Responsible Body in the scheme pays contributions al a common contribution rate applied lo pensionable stipends. The scheme is considered lo be a mulli-employer scheme as described in Section 28 of FRS 102. It is not possible lo allribute the Scheme's assets and liabilities lo each specific Responsible Body. and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions Costs charged lo the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, which were £19,280 in 2023 (2022.. £21,015), plus any figures arising from contributions in respect of the Scheme's deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022.. £01. A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of£560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following as5umplions'. An average discount rate of 2.70/0 p.a., RPI inflation of 3.60/0 p.a. (and pension increases consislenl with this),. CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjuslmenl from 2030 onwards. Increase in pensionable stipends in line with CPIH., Mortality in accordance with 90Q/o of the S3NA tables, with allowance for improvements in mortality rate5 from 2013 in line with the CM12020 extended model with a long term annual rale of improvement of 1.50/0, a smoothing parameter of 7, an initial addition to mortality improvemenls of 0.5 % pa and an allowance for 2020 data of O % {i.e. w2020 - ODltr). Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023. since the Scheme was fully funded. The deficit recovery contributions under the recovery plan in force at each 31 December were as follows.. % of pensionable stipends 31 December 2021 31 December 2022 31 December 2023 7.10/0 payable from January 202110 December 2022 An interim reduction to deficit contributions to 3.20/0 of pensionable stipends was made with effect from April 2022, and remained in place until December 2022. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules. 32 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Section 28.11A of FRS 102 requires agreed deficil recovery payments lo be iecognised 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 2023 is nil. The movement in the balance sheet liability over 2022 and over 2023 is sel out in the table below. 2023 £000 2022 £000 Balance sheet liability at 1 January Deficit contribution paid Inleresl cost (recognised in SOFA) Remaining change to the balance sheet liability. {recognised in SOFA) (3) (1) Balar5ce sheet liability at 31 December Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends. This liability represenls the present value of the deficit contributions agreed as al the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2023 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of Ihe recovery plan were already known. December 2023 December 2022 December 2021 £000 £000 £000 Discount rate nla nla nla nl8 nla nla Price inflation Increase to total pensionable payroll nla -1.5010 The legal structure of Ihe scheme is such that if anolher Responsible Body fails, Blackburn Diocesan Board of Education could become responsible for paying a share of that Responsible Body's pension liabilities. 33 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Analysis of Income 2023 £000 2022 £000 Donations and legacies Donations Diocesan Board of Finance General Funds External organisalions 310 324 12 359 637 374 Income from charitable actlvities Fees and Chaplaincy income Sale of publications and courses Service level agreements Rent 141 266 77 140 279 85 484 513 Other trading activities DBE Services Fees Investment income DBE Services gift-aid donation (170/0 owned) Dividends Interest 154 376 33 144 147 563 297 Fund Raising Costs Activities undertaken directly £000 Grant funding of activltle5 £000 Support Costs £000 Total 2023 £000 Total 2022 £000 Fundraisillg trading Total Fund-Ralslng Costs Charitable Activities Activlty or Programmo A¢tivitie5 undertaken directly £000 Grant funding of activities Support cost5 £000 Total 2023 £000 Total 2022 £000 £000 Cost of ¢harilable activities.. School and governor support Higher and furthereducalion Children's work Youth work Central- designaled School buildings support 422 60 65 98 288 41 45 67 710 100 111 169 48 252 664 134 110 158 16 88 48 139 67 46 Charitable aclivilies sublolal 712 191 487 1.390 1,170 34 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Net expenditure for the year 2023 £000 2022 £000 These are slated after charging.. Auditors remuneration 19 13 Total 13 Realised gains on schools The Church of England Primary School al Out Rawcliffe was closed in July 2013 and the Board is currently in the process of eslablishing the exact terms regarding closure and use of the sale proceeds of the original Trust Deed. If this is not available, the Board will follow due process in eslablishing how the proceeds from the sale of the school should be used or distributed. Tangible fixed assets Fixture5, fitting5 and other equipment £000 Buildings £000 Toial £000 Cost Al beginnlng of year Additions Disposals 625 87 712 Al end of year 625 93 718 Depreclation Al beginning of year Chaige for year Elim on disposal 114 18 70 184 26 Al end of year 132 78 210 Net book value At 31 December 2023 493 15 508 511 17 528 At 31 December 2022 Investments Unlisted se¢urlties Central Board of Finance Church of England Fixed interest securities fund £000 Total UK investments £000 Investment Fund £000 Property Fund £000 Market valuation At 31 December 2022 IncreasellDecieasel in market value 1,326 125 180 664 1311 2,170 Al 31 December 2023 1,451 190 633 2,274 Historic cost 1,145 224 700 2,069 Included wilhin Total UK Investments is a 17 /0 holding in DBE Services Limited, a non-listed company and a related party. The Board of Education holds 12 shares in DBE Services Limited valued at £12 {2022.' £12). 35 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 10 Debtors 2023 £000 2022 £000 Amounts receivable withln one year Deferred payments on school building projects Deferred Payment Ariangemenls Amount owed from related party Icidaril Other debtors Loans Prepayments Accrued income Amounts due from Diocesan Board of Finance Amounts due from DBE Services Ltd Amounts due from Vvhalley Abbey 1.436 1,414 40 124 40 307 16 42 75 125 52 Debtors.. amounts receivable within one year 1,793 1,901 Amounts receivable after more than one year Deferred Payment Arrangements Loans Amount owed from related party ICKJaril 133 10 180 140 11 220 Debtors.. amounts receivable after more than one year 323 371 Instalments payable due in two and five years Instslments due In five years or more Instalments due In one year Total 2023 £000 2022 £000 2023 £000 2022 £000 2023 £000 2022 £000 2023 £000 2022 £000 Deferred Payment Arrangements Loans 21 74 112 66 139 146 12 Total 25 78 118 73 150 158 11 Deposits and cash at bank and in hand 2023 £000 2022 £000 Bank (Current A¢¢ounl and Deposilsl Deposits with Central Board of Finance Church of England 3,109 7,299 8,499 3,994 10,408 12,493 36 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 12 Creditors 2023 £000 2022 £000 Amounts falling due withln one year Receipts in advance on behalf of boards of school governors Monies held on behall of schools in relation lo Devolved Formula Capital IDFCI Monies held on behalf ol schools in relation lo SCA Funding Monies held on behalf of schools in relation lo PSDS Funding Other creditors Accruals Deferred income 2,917 3,094 1,896 583 435 44 64 3,376 3,946 2,187 1,155 845 68 Creditors falling due within one year 9,033 11,590 Amounts falllng due after more than one year Education Irusl funds Defined benefit pension liability 139 135 Creditors falling due after more than one year 139 135 Defeffed Introme.. Al beginning of year Recognised in year Deferred income 2023 68 1681 63 At end of year 63 Deferred income is recognised as follows.. Recognisabl belween two and five years 2023 £000 Recognised in one year 2023 £000 Recognisable aftgr rive years 2023 £000 Total 2023 £000 2022 £000 2022 £000 2022 £000 2022 £000 Deferred income 63 68 63 68 13 Funds Unrestricted General Designated fund fund £000 Re5trl¢ted Endowment fund fund Total £000 £000 £000 £000 Al beginning of year 2.001 3,109 544 84 5,738 Surpluslldeficil) of income over expenditure in the year Investment gains in the year Transfers be￿een lunds 100 94 139 1161 210 294 102 11031 1361 Al end of year 2.334 2.990 718 92 6,134 37 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 The General Fund consists of those amounts available for the general purposes of the charitable company. At Net investment At 1 January gains, losses 31 December 2023 and transfers 2023 £000 £000 £000 Income £000 Expenditure £000 Designated funds Sponsoring 8¢ademies Elmslie Fund New Opportunity Fund Church Workers Pension Deficit Admissions & Appeals Appointments Vision 2026 Slalulory Governan Schools causing conce Dtrgilal Resources Underwriting DBF grant Youth Developmenl 365 365 451 345 53 21 1101 1331 462 327 53 126 167 {411 1101 59 438 126 194 49 429 101 194 84 700 100 19) 125) 1271 700 100 3,109 36 1521 11031 2,990 Restricted funds Residential Income Fund Education Trust Funds Common Fund Other restricted funds 40 35 44 363 287 30 299 29 389 80 (1311 181 12 1771 35 544 349 11391 1361 718 Endowment funds Residential Endowment Fund 84 92 The specific purposes for which the designated and restricted funds are to be applied is as follows.. The Youth Development fund - for the support of chaplaincy work. The Academies fund - lo support the sponsoring ofacademies. The Elmslie fund is used for the work of the youth chaplain al Blackpool Sl George CE School. The New Opportunity Fund- for school buildings support. The Residential Endowment and Income Fund are used lo support Youth Work aclivilies. The Common Fund was sel up by schools make voluntary donations lo support capital work in schools. Church workers pension deficit - designated for use against deficits on the defined benefit pension scheme for some employed staff. Admissions, Appointments and Appeals there is no direct source of income. designated to cover the cost of slalulory expenditure for where Educational Trust Fund the revaluation reserve on funds held in creditors awaiting final decision on ownership of the investment. Vision 2026 - a designaled fund has been created lo enable churches and schools to fund inilialives and projects that seek lo deliver the objectives of the diocese vision 2026. Stalulory Governance - this fund is to be used to underwrite the Board of Education's slatulory duties for governance in schools. 38 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 Schools causing concern schools falling into difficulty often require financial support and assistance this fund will enable the diocese to work in partnership with local authorities to support schools as they seek lo improve. Digital Resources- for Ihe production of digital resources for the Board of Education and staffing lo meet the target of significantly increasing digital reach. DBF Grant- for the undeNriling oflhe DBF Grant. Share capital The charitable company is limited by guaranlee, registered in England and does not have aulhorised or allotted share capital. The liabilily of each member of the Board may not exceed £1. Analysis of net assets between funds 14 15 Creditors falling due after more than one year £000 Net current assets £000 Tangible fixed assets £000 Investments £000 Totsl £000 Unreslricled Funds Reslricled Fund Ireslricledl Endowment fund Ireslricledl 508 2,145 37 92 2,671 820 5.324 718 92 11391 508 2,274 3,491 1139) 6,134 16 Commitments There were no commitmenls in 2023. 17 Related party transactions The company is related to Blackburn Diocesan Board of Finance Lld who provides significant funding by way of a grant. Al the year-end the balance due to this company was £1,700 (2022.. £170,070). Grants received in the year from this company amounted to £324,061 {2022: £359,360) and grants paid lo this company amounted lo £19,274 (2022: £9,375). Recharges in the year were £27,867 (2022.. £24,314). The company is related lo DBE SeNices Ltd by virtue of owning 17¥0 ofthe share capital. There was £2,400 due from DBE SeNices Ltd12022 £nil) atthe year end and recharges in the yearwere £9.01812022'. £11,009). The company is related to Cidari Mulli-Academy Trust which was sel up by both the DBE and DBF lo look after Church of England schools converting lo academies within the diocese. As al 31 December 2023 £219,608 (2022.. £259,608) was due from this company and recharges in the year were £10,006 (2022.. £10,492). 18 Financial instruments 2023 £000 2022 £000 Financial assets measured al fair value 2,274 2,170 Financial assets measured at amortised cost 12,524 15,360 Financial liabilities measured at amortised cosl Financial liabilities measured al fair value 39 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 19 Prior year comparative Statement of Financial Activities Unrestrl¢ted General Fund £000 2022 Designated Fund £000 Reslrlcted Endowment Funds Funds £000 £000 Total £000 Income and endowments from: Donations and legacies Charitabl& activities Other trading aclivilies Investments 362 490 12 23 374 513 282 297 Total 1,136 39 1.186 Expenditure on: Raising funds Charitable activities 1.139 16 15 1,170 Total 1,141 16 15 1,172 Net in¢omellexpenditurel before Investment gains {51 151 24 14 Nel gainslllossesl on investments (2771 {51 12931 Net incomellexpendlturel 12821 151 19 12791 Transfer belw&en funds {5361 535 Actuarial {lossesl on defined benefit pension schemes N&t movement in funds 18171 530 20 1278} Total funds brought foNard 2,818 2,579 524 95 6,016 Total lunds carrled forward 2,001 3,109 544 84 5,738 20 Prior year Fund Raising Costs Activities undertaken directly £000 Grant funding of activities £000 Support costs £000 Total 2022 £000 Total 2021 £000 Fundraising trading Total Fund.Raising Costs 40 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 21 Prior year Charitable Activities Activity or Programme Actlvltles undertaken directly £000 Grant funding of activities £000 Support costs £000 Total 2022 £000 Total 2021 £000 Cost of charitable aclivilies.. School and governor support Higher and furthereducation Children's work Youth work Cenlral- designated School buildings support 443 89 72 103 221 44 36 51 664 134 110 158 482 135 80 206 64 24 88 240 Charitable activities sublolal 778 16 376 1,170 1,143 22 Prior year Funds Unrestricted General Deslgnated fund fund £000 £000 Restricted Endowment fund fund Total £000 £000 £000 Al beginning of yeaf 2,818 2,579 524 95 6,016 Surpluslldeficill ol income over expenditure in the year Investment gains in the year Transfers between fLJnds Actuarial loss on pension scheme 151 12771 15361 151 24 14 {51 12931 535 Al end of year 2,001 3,109 544 84 5.738 41 The Blackburn Diocesan Board of Education Annual Report and Financial Statements For the ear ended 31 December 2023 The General Fund consists of those amounts available for the general purposes of the charitable company. At Net Investment Al 1 January galns, losses 31 December 2022 and transfers 2022 £000 £000 £000 Income £000 Expenditure £000 Designated funds Sponsoring academies Elmslie Fund New Opportunity Fund Church Workers Pension Deficit Admissions & Appeals Appoinlmenls & Appeals Vision 2026 Slalulory Governance Schools causing concern Digital ResoUr￿S Underwriting DBF grant Youth Development 365 454 347 53 365 451 345 53 {91 171 1391 167 70 608 150 194 132 59 438 126 194 111 700 100 11701 1241 121) 700 100 2,579 1161 535 3,109 Restricted funds Residential Income Fund Education Trust Funds Common Fund Other reslricled funds 38 {21 1141 40 49 35 373 64 12 23 389 80 (151 524 39 1151 141 544 Endowmentfunds Residential Endowment Fund 95 84 23 Prior year Analysis of net assets between funds Creditors falling due after more than one year £000 Net current assets £000 Tangible fixed assets £000 Investments £000 Total £000 Unreslricled Fund5 Restricted Fund Ireslrictedl Endowment fund Ireslricledl 528 2,051 35 84 2,531 644 5,110 544 84 1135) 528 2,170 3,175 11351 5,738 42