Registered Charity Number 1031550 Company Number 46014
INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 The Sanctuary Westminster London SW1P 3JT
Registered Office
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **ADMINISTRATIVE DETAILS**
## **TRUSTEES**
No Trustee had any beneficial interest in the company during 2023. The following Trustees served during 2023
The Rt. Rev. Dr. J. Gibbs The Lord Bishop of Rochester The Rt. Rev. S. Burton - Jones - Chair Bishop’s nominated representative The Rev. N. Bourne Co-option The Rev. Dr. J. Bowen Diocesan Synod elected - clergy The Rev. R. Bristow Diocesan Synod elected - clergy Fr. J. Caster Co-option Mr. J. J. King Diocesan Synod elected - lay Mr. L. Kings Co-option Mr. M. Lillie Co-option (secondary Headteacher) Mr. A. Longmuir Diocesan Synod elected - lay (Resigned 12 March 2023) Mrs. S. Phillips Co-option (primary Headteacher - Resigned 31 August 2023) Mrs. A. Mcgarrigle Co-option (primary Headteacher - Appointed 1 September 2023)
The 2023 Board Reconstitution composition and membership is detailed on page 8 Structure and Governance.
The charity is relying upon the guidance issued by the Charities Commission in relation to the induction and training of Trustees. In 2022, an induction meeting took place, where an information pack was issued and Senior Members of staff presented key responsibilities.
## **SENIOR STAFF AND ADVISERS**
Director of Education John Constanti Deputy Director of Education Virginia Corbyn (Retired 31/08/23) Deputy Director of Education Gemma Hitch (Appointed 01/09/23)
Registered Office 1 The Sanctuary Westminster London SW1P 3JT Principal Office Diocesan Office St. Nicholas' Church Boley Hill Rochester Kent ME1 1SL Bankers National Westminster Bank Plc Chatham Branch 148 High Street Chatham Kent ME4 4DB Auditors Crowe U.K. LLP Riverside House 40-46 High Street Maidstone Kent ME14 1JH Solicitors Stone King LLP Boundary House 91 Charterhouse St. Barbican London EC1M 6HR Investment Advisers CCLA Investment Management Ltd One Angel Lane London EC4R 3AB and Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU Insurers Ecclesiastical Insurance Office plc Beaufort House Brunswick Road Gloucester GL1 1JZ
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
The Trustees, who are also Directors for the purposes of company law, present their annual report, together with the audited financial statements for the year ended 31 December 2023.
The Directors/Trustees are one and the same and in signing as Trustees they are also signing the Strategic Report sections in their capacity as Directors.
This combined report satisfies the legal requirements for:
a Directors Report of a charitable company,
a Trustees' Annual Report under the Charities Act 2011.
## **MISSION STATEMENT**
To support and encourage the work of schools, churches and parishes across the Diocese of Rochester in Christian distinctiveness through excellent education of children and young people.
## **LEGAL OBJECTS**
The Incorporated Rochester Diocesan Board of Education's objects are confirmed within the objects clause of its Memorandum and Articles of Association which are:
1. To maintain and extend education in and knowledge of the Christian religion in general and the faith and practice of the Church of England in particular to all sections of the community within the Diocese of Rochester.
2. To carry out the functions of the Diocesan Board of Education for the Diocese of Rochester under the provisions of the Diocesan Boards of Education Measure 2021 and any legislation amending, supplementing or replacing the same.
The Diocese of Rochester Consolidated Educational Endowments were created by a resolution of the Board passed on 9 November 1994 and are held on the terms of the Uniform Statutory Trusts under Schedule 36 of the Education Act 1996.
In addition Trust Funds are held on behalf of schools. Please refer to note 19 in the financial statements for details of the assets held in this capacity.
## **STRATEGIC AIMS**
The Trustees and officers have continued to work towards achieving the 2022 - 2024 agreed triennial aims and objectives of the Board which can be summarised as follows.
1. To actively promote and support Christian Distinctiveness through developing high quality teaching and learning, leadership and effective governance of our Church schools.
2. To provide focussed support for school effectiveness in order that our Church schools are judged good or better or J1 in both the OFSTED and SIAMS inspection frameworks.
3. To improve the quality of teaching and learning of Religious Education in Church primary schools sharing best practice and offering professional development opportunities for all teaching staff in Church primary schools.
4. To develop effective strategic partnerships with Local Authorities, Teaching Schools Alliances, Multi Academy Trusts and other key stakeholders ensuring that every Church school is part of an informal, formal or structural collaboration which supports their Christian Distinctiveness, school effectiveness and sustainable future.
5. To ensure the good stewardship and effective deployment of the Board of Education's resources, to ensure its sustainable future and ability to deliver its triennial aims and key priorities.
6. To take opportunities for growth through the establishment of new Church schools and maintaining existing Church schools.
## **OBJECTIVES FOR THE YEAR**
The Trustees and officers, of the Board, have continued to work towards achieving the agreed triennial aims and objectives of the Board, as outlined above.
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **ACTIVITIES AND ACHIEVEMENTS IN THE YEAR**
1. To actively promote and support Christian Distinctiveness through developing high quality teaching and learning, leadership and effective governance of our Church schools.
- a. The skills audit template continues to be used during the Foundation governor appointment process to ensure that those appointed have the requisite skills and experience to serve.
- b. Officers or our associate consultants are, wherever possible, involved throughout the appointment process for new Head Teachers liaising with Local Authority officers and governors to ensure the best candidates are appointed.
- c. We consulted over our training programme and as a result have revised the support and courses offered. Bespoke training is also delivered to governing bodies and MATs, as requested.
- d. Members of the education team, our Associates and School Improvement partners have supported our Church schools with Head Teacher appraisals, training, school advisory visits, leadership, scoping, IEB and Schools Causing Concern meetings. Support can also be commissioned to provide coaching for head teachers together with packages of mentoring / supervision support.
- e. The education team regularly review those schools considered to be vulnerable and deploy various measures to support them.
2. To provide targeted challenge and focussed support for school effectiveness in order that our Church schools are judged good or better in both the OFSTED and SIAMS inspection frameworks.
- a. Over the course of the year, training on the latest SIAMS framework has been delivered by the Deputy Director to support the implementation and improvement of Diocesan schools as Church schools.
3. To improve the quality of teaching and learning of Religious Education in Church primary schools and sharing best practice and offering professional development opportunities for all teaching staff in Church primary schools.
- a. The Deputy Director of Education provided further support by undertaking SIAMS ready visits, new Head Teacher visits, bespoke training for RE subject leaders and has provided various training courses.
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
**ANNUAL REPORT**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **ACTIVITIES AND ACHIEVEMENTS IN THE YEAR (CONTINUED)**
4. To develop effective strategic partnerships with Local Authorities, Teaching Schools Alliance, Multi Academy Trusts (MATs) and other key stakeholders ensuring that every Church school is part of an informal, formal or structural collaboration which supports their Christian Distinctiveness, school effectiveness and sustainable future.
a. The Director of Education continued to work closely with schools and Multi Academy Trusts (MATs) in relation to their conversion and growth.
- b. The Director of Education continued to assist in developing the national Church educational policy.
- c. The Director and Deputy Director of Education liaises regularly with local authorities about the performance of schools.
The following tables provide details of the status of our Church schools and our Church Multi Academy Trusts (MATs) membership.
Table 1 - Church of England schools by status and sector in Diocese of Rochester
|**School Status**|**Number of Primary Schools**|**Number of Secondary Schools**|
|---|---|---|
|Voluntary Aided (VA)
Voluntary Controlled (VC)
Academies & Free Schools|18
28
39|1
0
5|
|Table 2 - Church Multi-AcademyTrusts in the Diocese of Rochester|||
|**Name of MAT**|**Local Authority Area**|**Number of academies**|
|Aletheia Anglican Academies Trust
Amadeus Primary Academies Trust
Aquinas Church of England Education Trust
Inspire Academy Movement Trust
Medway Anglican School Trust
Pilgrim Academy Trust
Tenax Trust
Trinitas AcademyTrust|Kent
Bexley
Bromley
Kent
Medway
Medway
Kent/Sussex
Bexley|12
6
11
3
4
4
8
7|
5. To ensure the good stewardship and effective deployment of the Board of Education's resources, to ensure its sustainable future and ability to deliver its triennial aims and key priorities.
- a. For several different reasons financial markets were turbulent during 2023 and the Finance and Resources Committee reviewed and monitored, on a quarterly basis, investment yields and growth.
- b. The main points associated with the Board of Education's finances in 2023 can be summarised as follows: i. The operational surplus decreased from £324,587 in 2022 to a deficit of £129,728 in 2023.
- ii. Investment income increased from £182,114 in 2022 to £187,804 in 2023.
- iii. Unrealised loss on investments of £808,211 in 2022 compared to a £473,484 unrealised gain in 2023.
- iv. The Board of Education's Endowment funds balance increased from £6,050,489 in 2022 to £6,079,044 in 2023.
- v. The Board's income funds were £1,683,500 in 2022 compared to £1,729,290 in 2023 which includes the gross income from the Diocesan Schools Agency Ltd.
6. In May 2019, the trustees approved to adopt the Total Return approach to investments which enables funds to be available to meet any future deficits of expenditure exceeding income without breaching the requirements of the restricted funds.
7. To take opportunities for growth through the establishment of new Church schools and maintaining existing Church schools.
- b. The project delivery of the new Secondary School in Ebbsfleet garden city (Alkerden) with the Aletheia Anglican Academies Trust progresses.
## **FUTURE PLANS**
The Trustees and officers, of the Board, will continue to work towards achieving the agreed strategic aims of the Board, for the triennium, as previously outlined on page 2.
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **FINANCIAL REVIEW**
## 1. Financial Performance
A number of global challenges impacted on operations and finances during the year and the key elements are highlighted below.
A comparison of the income received for 2022 and 2023 can be summarised as follows:
a. The subsidiary trading company surplus increased by £7,653 from a surplus of £42,885 in 2022 to a surplus of £50,538 in 2023. b. Investment income increased by £5,690 from £182,114 in 2022 to £187,804 in 2023.
c. Unrealised loss on investments of £808,211 in 2022 compared to a £473,874 unrealised gain in 2023.
A comparison of expenditure incurred for 2022 and 2023 can be summarised as follows:
a. Overall expenditure for schools' work increased by £12,297 from £367,838 in 2022 to £380,135 in 2023.
b. The schools' work expenditure from the Restricted Income fund increased by £6,707 from £313,564 in 2022 to £320,271 in 2023. c. Revenue grant expenditure decreased by £4,062 from £5,842 in 2022 to £1,780 in 2023.
d. Governance costs increased by £1,170 from £5,850 in 2022 to £7,020 in 2023.
There was a transfer of £613,709 from Capital funds to the Revenue funds.
The various income and expenditure movements for the year had the following impact on reserves:
a. The Corporate Funds reserve remained unchanged at zero.
b. The School Improvements Funds reserve increased by £74,193 from £270,639 in 2022 to £344,832 in 2023.
c. The Restricted Income Fund reserve increased by £241,008 from £94,655 in 2022 to a surplus balance of £335,663 in 2023. d. The Endowment Funds reserve increased by £28,555 from £6,050,489 in 2022 to £6,079,044 in 2023.
The Trustees were able to prepare a balanced budget for 2024 and estimate an overall surplus of some £114,143 in 2024.
The Trustees through the Finance and Resources Committee will continue to explore further options in order to increase income and decrease expenditure.
## 2. Reserves Policy
Reserves are an inherent part of the risk management process. The need for reserves will vary depending on our financial position and forecasts and our assessment of the risks we face at a particular time.
The Trustees have reviewed and approved the 2023 reserves policy which takes account of the predominant risks, challenges and the working capital requirements in both the short and medium term.
It is the Trustees' policy to, wherever possible, meet expenditure by generating income from the restricted funds, the trading subsidiary and from any DBF grant receipts.
The policy previously agreed was to use unrestricted funds before any other funds until those unrestricted reserves reach a nil balance.
The Trustees are aware that income annually excluding unrealised investment gains is presently insufficient to meet the expenditure annually necessary to meet the Trustees' approved activities. Unless and until the two are balanced, the Trustees recognise that they will need to use investment gains less losses each year as calculated on the Total Return fund basis and then, if necessary, utilise any unrestricted reserves and then the Unapplied Total Return Fund to cover any remaining deficit which arises.
Accordingly, they will, if necessary, agree annually an amount to be transferred from the Unapplied Total Return Fund to cover that year’s deficit if any. Investment gains over and above any needed to cover a deficit for the year in question will be added to this Fund annually and a sum representing inflation on the capital funds of the Board in accordance with CPI rates will be transferred from this Fund to the Trust for Investment capital reserve.
The Diocesan Board of Education also holds restricted reserves which have generally been historically accumulated from the sale of redundant school properties. These restricted reserves can only be used towards the cost of Church of England schools (buildings, resources and advice).
Unrestricted and restricted reserves are largely invested in diversified investment funds which historically rise in value over the long term. The value is monitored regularly by the Board’s Finance and Resources Committee, and Trustees have delegated to that Committee the timing and level of sales of investments in order to meet such annual deficit as calculated before unrealised investment gains/losses.
As at 31 December 2023 the total consolidated funds totalled £6,759,688 (2022 £6,415,932) of which £6,414,707 (2022 £6,145,144) were restricted and £344,931 (2022 £270,788) were unrestricted, which are the charity's free reserves.
The 2023 reserves policy and three year aims and objectives for 2022 - 2024 was approved by the Trustees.
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## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **FINANCIAL REVIEW (CONTINUED)**
## 3. Grant Making Policy
When considering school applications for financial assistance, the Trustees will adopt the following priorities:
- a. The total value of grants will be limited to the revenue income. Any grant award, which would necessitate expenditure of the endowment fund, will not normally be approved.
- b. All projects should be approved for grant aid by the DfE and supported by the LA. c. New Church Aided primary schools.
- d. New Church Aided secondary schools.
- e. Church Controlled schools deciding to adopt Church Aided status.
- f. Existing Church Aided schools.
- g. Schools serving socially deprived areas.
- h. The Governing Body's financial resources.
- i. Previous projects, at the school, funded by the Board of Education.
## 4. Investment Policy
The Board has a policy to invest in accordance with the ethical investment policy of the Church of England.
In line with this policy the Trustees considered the most appropriate vehicle for investing funds and found that specialised pooled funds, designed for the church and charity sector and managed by the Central Board of Finance (CCLA) and Sarasin & Partners meet their requirements to generate both income and capital growth.
The performance of investment markets fluctuated during the year. The investment portfolio at 31 December 2023 increased due to a gain of £473,484 (2022 - £808,211 loss)
||2023|2022|
|---|---|---|
||%|%|
|Actual Total Return Achieved|10.96|(9.39)|
|ARC Steady Growth Charity Index|7.30|(9.50)|
The Charitable Company currently holds £33,183 in cash deposits with the Central Board of Finance (CCLA), which are held in order to provide cash for the charity's operations. Cash deposit interest rates went up considerably during the year compared to 2022.
The Finance and Resources Committee reviews and monitors the performance of the investment funds on a quarterly basis.
## 5. Related Parties
Employees of the Rochester Diocesan Board of Education are jointly employed by The Rochester Diocesan Society and Board of Finance '(RDBF)'. The RDBF operates both a defined benefit pension arrangement and defined contribution pension schemes, shared HR, IT, communication and financial administration services. The RDBF charge an apportionment of office and administration expenses for the shared premises. Some Trustees of the Board of Education are nominated by the Deanery Synods for the appointment by the Diocesan Synod.
During the year a surplus of £50,538 resulted from the Diocesan Schools Agency, which will be transferred to the Incorporated Rochester Diocesan Board of Education. A £6,000 contribution towards staff costs was received from The Diocesan Schools Agency to the Incorporated Rochester Diocesan Board of Education.
The Board of Education acts as a member with a limited liability of £10 for the following Multi Academy Trusts:-
Aquinas, MAST, Amadeus, Trinitas, Alethia, Pilgrim. Additionally the Rochester Diocesan Board of Education also appoints governors to Voluntary Aided and Voluntary Controlled Schools. The Diocesan Schools Agency provides services to the Multi Academy Trusts, Voluntary Aided and Voluntary Controlled Schools at an arms-length basis at the discretion of the schools.
## 6. Public Benefit
When considering the Incorporated Rochester Diocesan Board of Education and its subsidiary's activities, the Trustees have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit. No changes to ongoing activities were considered necessary as the varied works of the Board of Education have always benefited the public in numerous ways as detailed in this report.
## 7. Going Concern
Accounting standards require the Trustees to consider the appropriateness of the going concern basis when preparing the financial statements. The Trustees regard the going concern basis as being appropriate as the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. The Charitable Company has adequate financing facilities based on the Trustees' review of the forecast and the current level of free reserves available given that the investment and cash balances could be deployed to cover any operating deficit in the short to medium term.
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## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **PRINCIPAL RISKS AND UNCERTAINTIES**
The Trustees are responsible for the identification and management of risk and to achieve this, a register of identified risks is maintained and, alongside it a management strategy formed. This is subject to annual review by the Trustees with the responsibility for delivery of the identified management strategies, being delegated to the Director of Education.
In the Trustees' opinion there are established resources and review systems, which under normal conditions, should allow the identified risks to be mitigated to an acceptable level in its day to day management.
No risks were identified in the 2023 or 2022 risk register where the probability and impact of the events is considered "high".
The accounts are approved through appropriate consideration of risks as part of its normal risk management processes and mitigating actions both already taken and available to be taken, trustees consider it appropriate for the going concern basis to be adopted in these accounts.
## **STRUCTURE AND GOVERNANCE**
## **Summary information about the structure of the Church of England**
The Church of England is the established church with His Majesty The King as its Supreme Governor. It is organised into two provinces (Canterbury and York) with a total of 42 Dioceses. Each Diocese is a See under the care of a Bishop who is charged with the cure of souls of all people within the geographical area. This charge is shared with priests within benefices and parishes which are sub divisions of the Diocese. Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod.
The Diocese of Rochester is divided into three Archdeaconries within which there are seventeen deaneries, each with its own Deanery Synod. Within each deanery there are individual ecclesiastical parishes with their own parochial church council, which shares with the parish priest, local responsibility for the mission of the church.
## **Organisational structure**
The Diocesan Boards of Education Measure 2021 confirms that for every Diocese there shall be a Diocesan Board of Education which shall have certain functions and shall be responsible to the Diocesan Synod. The Bishop, after consultation with the Board, shall appoint a Director of Education for the Diocese who shall act as secretary to the Board.
The Incorporated Rochester Diocesan Board of Education is a company limited by guarantee (No. 46014) and a registered charity (No. 1031550) governed by its Memorandum and Articles of Association.
The Board's principal activity is to maintain and extend education in and knowledge of the Christian religion in general and the faith and practice of the Church of England in particular to all sections of the community within the Diocese of Rochester. It was established in its present form on the 19 November 1895.
Governance and policy of the Board is the responsibility of the Trustees, who are also members of the company and trustees for the purposes of charity law.
The Board's composition and membership during the 2023 financial year were governed by its revised Articles of Association. In October 2016, the Diocesan Synod approved proposals for the reconstitution of the DBE. The Secretary of State for Education approved the revised Articles of Association and issued an Order in November 2017.
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## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **STRUCTURE AND GOVERNANCE (CONTINUED)**
## **Organisational structure (continued)**
The Trustees' term of office is three years and those who served during the year are shown on page 1.
From January 2022 the Board's composition and membership is summarised as follows.
1. The Bishop. 2. One Trustee nominated by the Bishop. 3. Six Trustees elected by Diocesan Synod (i) a. 3 Clerks in Holy Orders (for each of the 3 Archdeaconries). b. 3 Lay persons on the electoral roll for their parish (for each of the 3 Archdeaconries).
4. At least 2 Trustees but not more than 6 Trustees co-opted by the DBE a. 2 serving Headteachers at CE schools/academies (one primary and one secondary)
- b. Up to 4 other Trustees with experience of other area of work with which the DBE is concerned including: finance, legal, HR, school improvement, charity trusteeship, school governorship, leadership or public relations.
- (i) Under 3. Diocesan Synod elected members a. These are nominated by Deanery Synods, reviewed by Bishop’s Council and then elected by Diocesan Synod.
- b. Such candidates must either reside or work or worship in the Diocese but need not themselves be members of the Diocesan Synod. c. Any casual vacancy among the elected members (which expression includes the case where insufficient candidates have been nominated to fill the places available) shall be filled in such a manner as may be determined by the Diocesan Synod.
The following Local Authorities within the Diocese shall each be entitled to nominate one person to attend meetings of the Board on the Local Authority's behalf. These persons are not eligible to vote at such meetings and do not hold the position of Trustee or Member of the Charity:
1. The Council of the London Borough of Bexley
2. The Council of the London Borough of Bromley
3. Kent County Council and
4. Medway Council.
## **Decision making structure**
Corporate priorities, the overall financial strategy for the Board, in accordance with its objects, are the responsibility of the Trustees as is their review and monitoring. Operational delivery of these priorities and strategies is delegated to the Director of Education.
The Board meets up to six times a year to conduct its business, approve policy and review the impact of its work. Much of the operational decision-making is delegated to a Finance and Resources Committee and a School Effectiveness Committee which both meet up to three times per year.
These sub-committees are a critical part of the Board's work and provide oversight and monitoring of the key areas of responsibility to ensure that the Diocesan Board of Education (DBE), as an independent, incorporated charitable company, remains compliant with legislation and the requirements of the Charity Commission.
The Trustees are assisted in their work by officers and the following two Committees.
1. Finance and Resources Committee Meets up to three times per year and reviews and monitors the management and annual accounts, budget, investment performance, school building projects, reserves and risk management policies and external audit.
2. School Effectiveness Committee Meets up to three times per year and monitors and reviews the performance of Church schools in terms of academic and Christian distinctiveness identifying those that are vulnerable.
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## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **STRUCTURE AND GOVERNANCE (CONTINUED)**
## **Decision making structure (continued)**
Trustees are members of the Board and are selected as outlined on page 8. At the beginning of each triennium an induction meeting is arranged for all Trustees led by the Director of Education to brief them on: their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the Induction meeting Trustees meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
## **Charity Governance Code**
The Trustees have reviewed the Governance of the Charity in light of the Charity Governance Code which was published in 2017. The Trustees seek to comply with the Code.
## **Funds held as Custodian Trustee**
The Board is custodian trustee of assets held on behalf of church schools and others who act as managing trustees. These assets are not aggregated in the financial statements as the Board does not control them and they are segregated from the Board's own assets by means of a separate accounting system. Further details of these assets, whose market value totalled £1,987,699 at 31 December 2023 (2022 - £1,875,162), are provided in notes 18 & 19.
## **Key management remuneration**
The pay of the key management personnel, as detailed in note 9, and all staff are reviewed annually and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the Trustees benchmark against pay levels in other charities. The remuneration benchmark is the mid-point of the range paid for similar roles in similar charities and sizes.
## **Funds held on behalf of church schools**
The Board receives contributions from governors of church voluntary aided schools within the Diocese in connection with their major repair and capital projects and also government grants in connection with same. The Board administers these monies as managing agent and makes appropriate payments to consultants and contractors for work undertaken. These monies do not belong to the Board and therefore these receipts and payments are not treated as income and expenditure in the Statement of Financial Activities. Any monies held, or due at the balance sheet date are treated as debtors or creditors on the balance sheet, as shown in notes 12 and 13.
## **Total return**
On 20 May 2019 the Trustees voted to exercise the power granted under section 104A(2) of the Charities Act 2011 and to adopt a total return approach to investments. The Total Return approach identifies those cumulative investment gains(known as the unapplied total return) which are available if necessary to offset any annual deficits of income (excluding unrealised investment gains) against expenditure not covered by other available reserves.
The date that the initial value of the Trust for Investment and the initial value of the unapplied total return were established was 31 December 1996 In order to identify the initial amounts of the trust for investment the Trustees have used the valuation of investments at 31 December 1996. The unapplied total return has been calculated from this point onwards by (a) an annual reduction for the inflationary increase in the initial Trust for Investment using CPI and (b) any annual deficits since 1996 not covered by other available reserves.
In 2023 , there was a surplus of £335,663 (2022: surplus £94,655) which was partly covered by a transfer from Capital to Revenue, proving the total return approach to be beneficial.
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **TRUSTEES' RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial period in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.
Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its net income for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that are sufficient to 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 them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In determining how amounts are presented within items in the statement of financial activities and balance sheet, the Trustees have had regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting principles or practice.
So far as each of the Trustees is aware at the time the report is approved:
- there is no relevant audit information of which the Charitable Company's auditors are unaware, and
- ● the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The re-appointment of Crowe U.K. LLP as auditors will be proposed at the Annual General Meeting.
The Annual Report was approved by the Board on 5 June 2024 and signed on its behalf by
Mr. J. J. King
Trustee and Chair of Finance and Resources Committee
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**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS**
## **Independent Auditor’s Report to the Members and Trustees of the Incorporated Rochester Diocesan Board of Education**
## **Opinion**
We have audited the financial statements of the Incorporated Rochester Diocesan Board of Education (‘the charitable company ’) and its subsidiary (‘the group’) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Statement of Financial Activities, the Company Balance Sheet, the Consolidated Statement of Cash Flows, and notes to the financial statements, including 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 group’s and the charitable company’s affairs as at 31 December 2023 and of the group’s incoming resources and application of resources, including its 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 group 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 eth ical 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 trustee's 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 doubt 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, 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 trustees’ report have been prepared in accordance with applicable legal requirements.
Page 11
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES (CONTINUED)**
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ 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:
the parent company has not kept adequate accounting records; or
the parent 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**
As explained more fully in the trustees’ responsibilities statement set out on page 10, 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 continu e 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 lev el 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 of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- identifying, evaluating and assessing compliance with laws and regulations;
- discussing with management whether they have knowledge of any actual, suspected or alleged fraud; and,
- discussing among the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the recognition of income.
- obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company.
Page 12
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES (CONTINUED)**
## **Audit response to risks identified**
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- reading minutes of meetings of those charged with governance; and,
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
- We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. We focused on laws and regulations that could give rise to a material misstatement in the company’s financial stat ements. Our tests included, but were not limited to:
- agreement of the financial statement disclosures to underlying supporting documentation;
- enquiries of management;
- review of minutes of Board meetings throughout the period; and
- considering the effectiveness of control environment
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s 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 Com panies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are requ ired to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or as sume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for ou r audit work, for this report, or for the opinions we have formed.
Ian Weekes Senior Statutory Auditor For and on behalf of
Crowe U.K. LLP Statutory Auditors
Riverside House 40-46 High St Maidstone Kent ME14 1JH
Date: 1 Ju ly 2024
Page 13
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
## **(INCORPORATING AN INCOME AND EXPENDITURE STATEMENT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2023
Notes
£
£
£
£
**INCOME FROM:**
Charitable activities
3
-
1,412,457
-
1,412,457
Other trading income
4
115,880
-
-
115,880
Investments
6
7,613
9,528
170,663
187,804
Other income
7
-
4,468
8,681
13,149
**TOTAL INCOME**
**123,493**
**1,426,453**
**179,344**
**1,729,290**
**EXPENDITURE ON:**
Other trading costs
8
59,342
-
-
59,342
Charitable activities:
Schools' work
8
522
320,271
-
320,793
Department of Education grants projects
8
-
1,478,883
-
1,478,883
**TOTAL EXPENDITURE**
**59,864**
**1,799,154**
-
**1,859,018**
**Net income/(expenditure) for the year**
**before gains/losses on investments**
**63,629**
**(372,701)**
**179,344**
**(129,728)**
Unrealised gains/(losses) on investments
11
10,564
-
462,920
473,484
**Net income/(expenditure) for the year**
**74,193**
**(372,701)**
**642,264**
**343,756**
Transfers between funds
14
-
-
-
-
Transfers between funds - Total Unapplied Return
17
-
613,709
(613,709)
-
**Net movement in funds**
**74,193**
**241,008**
**28,555**
**343,756**
Fund balances brought forward as previously stated
270,788
94,655
6,050,489
6,415,932
**Fund balances carried forward**
17
**344,981**
**335,663**
**6,079,044**
**6,759,688**|_Total_
_2022_
_£_
_1,393,164_
_99,541_
_182,114_
_8,681_|
|---|---|
||**_1,683,500_**|
||_54,126_
_313,712_
_991,075_|
||**_1,358,913_**|
||**_324,587_**|
||_(808,211)_
**_(483,624)_**|
||-
-|
||**_(483,624)_**|
||_6,899,556_|
||**_6,415,932_**|
The above statement contains all the gains and losses recognised in the current and preceding year.
All income and expenditure relates to continuing operations.
The notes on pages 19 to 34 form part of these financial statements.
Page 14
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **CHARITY STATEMENT OF FINANCIAL ACTIVITIES**
## **(INCORPORATING AN INCOME AND EXPENDITURE STATEMENT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|Unrestricted
Unrestricted
Restricted
Endowment
Funds
Funds
Funds
Funds
Corporate
Consolidated
Total
Funds
School
Educational Endowments
2023
General
Improvements
Income
Capital
Notes
£
£
£
£
£
**INCOME FROM:**
Charitable activities
3
-
-
1,412,457
-
1,412,457
Income from subsidiary
4
56,538
-
-
-
56,538
Investments
6
522
7,091
9,528
170,663
187,804
Other income
7
-
-
4,468
8,681
13,149
**TOTAL INCOME**
**57,060**
**7,091**
**1,426,453**
**179,344**
**1,669,948**
**EXPENDITURE ON:**
Charitable activities
Schools' work
8
522
-
320,271
-
320,793
Department of Education grants projects
8
-
-
1,478,883
-
1,478,883
**TOTAL EXPENDITURE**
**522**
**-**
**1,799,154**
**-**
**1,799,676**
**Net income/(expenditure) for the year**
**before gains/losses on investments**
**56,538**
**7,091**
**(372,701)**
**179,344**
**(129,728)**
Unrealised gains/(losses) on investments
11
-
10,564
-
462,920
473,484
**Net income/(expenditure) for the year**
**56,538**
**17,655**
**(372,701)**
**642,264**
**343,756**
Transfers between funds
14
(56,538)
56,538
-
Transfers between funds - Total Unapplied Return
17
613,709
(613,709)
-
**Net movement in funds**
-
**74,193**
**241,008**
**28,555**
**343,756**
Fund balances brought forward as previously stated
-
270,639
94,655
6,050,489
6,415,783
**Fund balances carried forward**
17
**-**
**344,832**
**335,663**
**6,079,044**
**6,759,539**|_Total_
_2022_
_£_
_1,393,164_
_45,415_
_182,114_
_8,681_|
|---|---|
||**_1,629,374_**|
||_313,712_
_991,075_|
||**_1,304,787_**|
||**_324,587_**|
||_(808,211)_
**_(483,624)_**|
||-
-|
||**_(483,624)_**|
||_6,899,407_|
||**_6,415,783_**|
The above statement contains all the gains and losses recognised in the current and preceding year.
All income and expenditure relates to continuing operations.
The notes on pages 19 to 34 form part of these financial statements.
Page 15
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **CONSOLIDATED BALANCE SHEET - COMPANY NUMBER 46014**
## **AS AT 31 DECEMBER 2023**
|||Unrestricted|Restricted|Endowment|Total|_Total_|
|---|---|---|---|---|---|---|
|||Funds|Funds|Funds|2023|_2022_|
||Note|£|£|£|£|_£_|
|**Fixed Assets**|||||||
|Tangible Fixed Assets|10|-|10,007|215,150|225,157|_247,080_|
|Investments|11|196,561|335,663|5,868,243|6,400,467|_5,926,592_|
|||196,561|345,670|6,083,393|6,625,624|_6,173,672_|
|**Current Assets**|||||||
|Debtors|12|57,488|15,369|-|72,857|_57,188_|
|CBF Deposits||40,772|33,183|-|73,955|_480,298_|
|Sarasin Deposits||-|-|-|-|_408_|
|Bank Deposits||68,864|-|-|68,864|_22,970_|
|Cash at Bank - Current Account||-|29,349|(4,349)|25,000|_25,000_|
|Cash at Bank - Business Reserve||-|82,695|-|82,695|_153,056_|
|||167,124|160,596|(4,349)|323,371|_738,920_|
|**Current Liabilities**|||||||
|Creditors|13|18,704|170,603|-|189,307|_496,660_|
|||18,704|170,603|-|189,307|_496,660_|
|**Net Current Assets/(Liabilities)**||**148,420**|**(10,007)**|**(4,349)**|**134,064**|**_242,260_**|
|Total Assets Less Current Liabilities||344,981|335,663|6,079,044|6,759,688|_6,415,932_|
|**Net Assets**||**344,981**|**335,663**|**6,079,044**|**6,759,688**|**_6,415,932_**|
|**Funds**|||||||
|Unrestricted - General|17|(51)|-|-|(51)|_(51)_|
|Designated - School Improvements|17|344,832|-|-|344,832|_270,639_|
|Restricted - Consol Edu Endowments - Income|17|-|335,663|-|335,663|_94,655_|
|Endowment - Consol Edu Endowments - Capital|17|-|-|6,079,044|6,079,044|_6,050,489_|
|Non-charitable trading funds held by subsidiary|17|200|-|-|200|_200_|
|||**344,981**|**335,663**|**6,079,044**|**6,759,688**|**_6,415,932_**|
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities and in accordance with the Financial Reporting Standard (FRS) 102.
Approved and authorised for issue by the Board on 5 June 2024.
Mr. J. J. King Trustee and Chair of Finance and Resources Committee
The notes on pages 19 to 34 form part of these financial statements.
Page 16
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **CHARITY BALANCE SHEET - COMPANY NUMBER 46014**
## **AS AT 31 DECEMBER 2023**
|||Unrestricted|Unrestricted|Restricted|Endowment|||
|---|---|---|---|---|---|---|---|
|||Funds|Funds|Funds|Funds|||
|||Corporate|School|Consolidated||Total|_Total_|
|||Funds|Improvements|Educational Endowments|Educational Endowments|2023|_2022_|
|||General||Income|Capital|||
||Note|£|£|£|£|£|_£_|
|**Fixed Assets**||||||||
|Tangible Fixed Assets|10|-|-|10,007|215,150|225,157|_247,080_|
|Investments|11|51|196,561|335,663|5,868,243|6,400,518|_5,926,643_|
|||51|196,561|345,670|6,083,393|6,625,675|_6,173,723_|
|**Current Assets**||||||||
|Debtors|12|-|50,538|15,369|-|65,907|_44,739_|
|CBF Deposits||11,903|28,869|33,183|-|73,955|_480,298_|
|Sarasin Deposits||-|-|-|-|-|_408_|
|Bank Deposits||-|68,864|-|-|68,864|_22,970_|
|Cash at Bank - Current Account||-|-|29,349|(4,349)|25,000|_25,000_|
|Cash at Bank - Business Reserve||-|-|82,695|-|82,695|_153,056_|
|||11,903|148,271|160,596|(4,349)|316,420|_726,471_|
|**Current Liabilities**||||||||
|Creditors|13|11,954|-|170,603|-|182,557|_484,411_|
|||11,954|-|170,603|-|182,557|_484,411_|
|**Net Current Assets/(Liabilities)**||**(51)**|**148,271**|**(10,007)**|**(4,349)**|**133,864**|**242,060**|
|Total Assets Less Current Liabilities||-|344,832|335,663|6,079,044|6,759,539|_6,415,783_|
|**Net Assets**||**-**|**344,832**|**335,663**|**6,079,044**|**6,759,539**|**_6,415,783_**|
|**Funds**||||||||
|Unrestricted|17|-|344,832|-|-|344,832|_270,639_|
|Restricted|17|-|-|335,663|-|335,663|94,655|
|Endowment|17|-|-|-|6,079,044|6,079,044|_6,050,489_|
|||**-**|**344,832**|**335,663**|**6,079,044**|**6,759,539**|**_6,415,783_**|
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities and in accordance with the Financial Reporting Standard (FRS) 102.
Approved and authorised for issue by the Board on 5 June 2024.
Mr. J. J. King Trustee and Chair of Finance and Resources Committee
The notes on pages 19 to 34 form part of these financial statements.
Page 17
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **CONSOLIDATED CASH FLOW - COMPANY NUMBER 46014**
## **AS AT 31 DECEMBER 2023**
|**Net income/(expenditure) for the year**
Depreciation
Unrealised (gains) / losses on investments
Disposal of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash inflow from operating activities**
Receipts from sale of fixed assets
Payments to acquire investments
**Net cash (outflow)/inflow from investing activities**
Increase in cash in the year
Cash and cash equivalents brought forward
**Cash and cash equivalents carried forward**|Total
2023
£
**343,756**
11,272
(473,484)
(4,468)
(21,168)
(301,854)
**(445,946)**
15,119
(391)
**14,728**
(431,218)
681,732
**250,514**|_Total_
_2022_
_£_
**_(483,624)_**
_13,034_
_808,211_
_-_
_(36,073)_
_(176,720)_|
|---|---|---|
|||**_124,828_**
_-_
_-_|
|||**-**|
|||_124,828_
_556,904_|
|||**_681,732_**|
Page 18
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1. ACCOUNTING POLICIES**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounting in accordance with the Financial Reporting Standard (FRS) 102, the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective January 2019) and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note.
The charity constitutes a public benefit entity as defined by FRS 102.
Accounting standards require the Trustees to consider the appropriateness of the going concern basis when preparing the financial statements.
**a) Consolidation** The consolidated financial statements include the company and its subsidiary. Intra-group sales and income are eliminated on consolidation and all sales and income figures relate to external transactions only. The subsidiary's results have been consolidated on a "line by line" basis. **b) Income** Donations and legacies are accounted for as soon as their amount and receipt are certain. In the case of donations this is usually when they are received. All other income is accounted for under the accruals concept. **c) Expenditure** Expenditure is accounted for under the accruals concept inclusive of VAT. VAT is included as it is not recoverable by the Charitable Company. Governance costs are those costs associated with constitutional and statutory requirements. **d) Investments** Investments are included in the balance sheet at Bid price apart from the investment in the subsidiary company which is included at cost. Realised gains or losses on sale of investments represent proceeds of sale less the appropriate proportion of the opening carrying value and are shown in the Statement of Financial Activities. Unrealised gains or losses on revaluation of investments are shown in the Statement of Financial Activities. **e) Allocation of expenditure** Common, shared items of expenditure are apportioned to the different areas of work based on the number of employees within each area. The irrecoverable element of VAT is included with the items of expense to which it relates. **f) Funds** Restricted funds are funds subject to specific conditions imposed by the donor which are binding on the Trustees. Unrestricted funds have no restrictions on their use.
Designated funds are a form of unrestricted fund, which has been allocated or designated for specific purposes by the Charitable Company itself. The use of designated funds for their designated purpose will remain at the discretion of the Trustees. Endowment funds are restricted funds whose income can be used to fund schools' work.
The Corporate Funds are unrestricted funds, the Income Fund of the Consolidated Educational Endowments is a restricted fund, the Capital Fund of the Consolidated Educational Endowments is an endowment fund and the School Improvements Fund is an unrestricted fund.
Page 19
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1. ACCOUNTING POLICIES (CONTINUED)**
## **g) Depreciation**
Depreciation is provided on all tangible fixed assets in use, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value of the asset over its expected life, as follows:
Freehold Buildings
- No depreciation is provided as the residual value of the properties is such that any depreciation charge would be immaterial to the accounts.
-
- Investment Property Investment Property is held at its open market value. Depreciation is not charged in accordance with FRS102.
Mobile Classrooms - over 1 year. Motor Vehicles - over 4 years.
Assets with a cost of below £1,500 are not capitalised and are charged as an expense in the Statement of Financial Activities.
## **h) Pensions**
The assets of the pension scheme are held separately from those of the Board and are invested with the Ecclesiastical Insurance Group under the supervision of the scheme Trustees. The Board's contribution to the scheme is charged to its income and expenditure as contributions are made, as disclosed in note 16.
## **i) Grants**
Grants made by the Board are treated as expenditure when they are approved.
## **j) Liability recognition**
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
## **k) Debtors**
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.
In preparing the financial statements, the Trustees are required to make certain judgements and estimates. The key judgements and estimates are considered to be the valuation of investment property. The Trustees consider that the carrying value of the social investment property at £205,857 (see note 10) is a fair representation of the open market value of that property.
Page 20
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2. EDUCATION ACTS 1944 ,1973 AND 1996**
The Consolidated Educational Endowments Funds emanate from the sale proceeds of former school buildings and from endowments of closed schools.
On 9 November 1994 the Board of Education passed a resolution under what is now Section 557 of the 1996 Act to adopt the uniform statutory trusts in respect of funds held under Section 86 schemes and Section 2 orders and to consolidate the funds and endowments as "The Diocese of Rochester Consolidated Educational Endowments".
|**3.**
**CHARITABLE ACTIVITIES**
**GRANT INCOME**
Consolidated Educational Endowments - Grant Income
Department of Education grants
Contributions from Schools
**4.**
**OTHER TRADING ACTIVITIES**
Corporate Funds - General
The Diocesan Schools Agency Ltd - surplus
Contribution to staff costs|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**£**
**£**
1,284,186
1,284,186
1,269,460
_1,269,460_
128,271
128,271
123,704
_123,704_|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**£**
**£**
1,284,186
1,284,186
1,269,460
_1,269,460_
128,271
128,271
123,704
_123,704_|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**£**
**£**
1,284,186
1,284,186
1,269,460
_1,269,460_
128,271
128,271
123,704
_123,704_|
|---|---|---|---|
||1,412,457
**1,412,457**
**1,393,164**
**_1,393,164_**|||
|||**Charity**
**2023**
**£**
50,538
6,000
**56,538**|**_Charity_**
**_2022_**
**_£_**
_39,415_
_6,000_|
||||**_45,415_**|
Page 21
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|**5.**
**NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY**
**Consolidated**
**2023**
**£**
**Income**
Buildings consultancy
24,450
Inspections
1,125
Course provision
7,122
Academy conversion
9,000
Service level agreement
37,351
Leadership conference
9,400
School improvements
21,432
109,880
**Expenditure**
Staff charges -
Travelling and sundry expenses
800
Salary costs
7,000
Course provision
1,784
Leadership conference
7,468
School improvement
36,440
Audit
5,850
59,342
Surplus on ordinary activities prior to contribution to charity
50,538
Amount to be transferred to charity
(43,538)
Contribution to staff costs
(7,000)
Retained surplus/(deficit) in subsidiary
**-**
**6.**
**INCOME FROM INVESTMENTS**
**Consolidated**
**Charity**
**_Consolidated_**
**2023**
**2023**
**_2022_**
Quoted Investments
**£**
Corporate Funds - General
CBF deposit interest
522
522
_148_
School Improvements
CBF deposit interest
1,137
1137
_254_
Bank interest
478
478
_50_
Sarasin Income distribution
5,458
5458
_5,455_
Sarasin Interest
18
18
_5_
7,091
7091
_5,764_
Consolidated Educational Endowments - Capital
CBF Investment Fund
107,403
107403
_106,812_
Sarasin Income distribution
63,260
63260
_63,260_
170,663
170663
_170,072_
Consolidated Educational Endowments - Income
CBF deposit interest
5,783
5783
_5,141_
Sarasin Interest
60
60
_16_
Bank interest
3,685
3685
_973_
Rent Receivable
-
_0_
_-_
9,528
9528
_6,130_
**187,804**
187804
**_182,114_**|**5.**
**NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY**
**Consolidated**
**2023**
**£**
**Income**
Buildings consultancy
24,450
Inspections
1,125
Course provision
7,122
Academy conversion
9,000
Service level agreement
37,351
Leadership conference
9,400
School improvements
21,432
109,880
**Expenditure**
Staff charges -
Travelling and sundry expenses
800
Salary costs
7,000
Course provision
1,784
Leadership conference
7,468
School improvement
36,440
Audit
5,850
59,342
Surplus on ordinary activities prior to contribution to charity
50,538
Amount to be transferred to charity
(43,538)
Contribution to staff costs
(7,000)
Retained surplus/(deficit) in subsidiary
**-**
**6.**
**INCOME FROM INVESTMENTS**
**Consolidated**
**Charity**
**_Consolidated_**
**2023**
**2023**
**_2022_**
Quoted Investments
**£**
Corporate Funds - General
CBF deposit interest
522
522
_148_
School Improvements
CBF deposit interest
1,137
1137
_254_
Bank interest
478
478
_50_
Sarasin Income distribution
5,458
5458
_5,455_
Sarasin Interest
18
18
_5_
7,091
7091
_5,764_
Consolidated Educational Endowments - Capital
CBF Investment Fund
107,403
107403
_106,812_
Sarasin Income distribution
63,260
63260
_63,260_
170,663
170663
_170,072_
Consolidated Educational Endowments - Income
CBF deposit interest
5,783
5783
_5,141_
Sarasin Interest
60
60
_16_
Bank interest
3,685
3685
_973_
Rent Receivable
-
_0_
_-_
9,528
9528
_6,130_
**187,804**
187804
**_182,114_**|**Consolidated**
**_2022_**
**_£_**
_19,789_
_458_
_13,282_
_4,500_
_37,540_
_-_
_21,442_|
|---|---|---|
|||_97,011_
_800_
_7,000_
_2,323_
_-_
_39,128_
_4,875_|
|||_54,126_|
|||_42,885_
_(35,885)_
_(7,000)_|
|||**_-_**|
|||**_Charity_**
**_2022_**
**_£_**
_148_
_254_
_50_
_5,455_
_5_|
||7,091
7091
_5,764_
107,403
107403
_106,812_
63,260
63260
_63,260_|_5,764_
_106,812_
_63,260_|
||170,663
170663
_170,072_
5,783
5783
_5,141_
60
60
_16_
3,685
3685
_973_
-
_0_
_-_|_170,072_
_5,141_
_16_
_973_
_-_|
||9,528
9528
_6,130_|_6,130_|
||**187,804**
187804
**_182,114_**|**_182,114_**|
The investment income relates to income generated from endowments to support the Charitable Company's work in schools.
Page 22
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|**7.**
**OTHER INCOME**
Consolidated Educational Endowments - Capital
Rents Receivable
Consolidated Educational Endowments - Income
Profit on sale of motor vehicles
**8.**
**ANALYSIS OF COSTS**
Corporate Funds - General
Staff charges - Costs
Direct
The Diocesan School Agency Ltd - Costs
Direct
Consolidated Educational Endowments - Income
Schools' festival
Direct
Staff charges - Costs
Direct
Depreciation - Motor vehicles
Support
Office costs
Support
Equipment costs
Support
Revenue Grants
Support
Audit costs - Governance costs*
Support|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**_£_**
**_£_**
8,681
8,681
_8,681_
_8,681_
4,468
4,468
_-_
_-_|
|---|---|
||**13,149**
**13,149**
**_8,681_**
**_8,681_**|
||**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**_£_**
**_£_**
522
522
_148_
_148_|
||522
522
148
148|
||59,342
-
_54,126_
_-_|
||**59,342**
**-**
**54,126**
**-**|
||(512)
(512)
_(570)_
_(570)_
272,984
272,984
_263,046_
_263,046_
11,272
11,272
_13,034_
_13,034_
27,727
27,727
_25,812_
_25,812_
-
-
_550_
_550_
1,780
1,780
_5,842_
_5,842_
7,020
7,020
_5,850_
_5,850_|
||**320,271**
**320,271**
**_313,564_**
**_313,564_**|
Included in the Schools Work costs is an amount of £7,020 for audit fees (2022 - £5,850). Total audit fees for the Charitable Company and its subsidiary amounted to £11,466 (2022 - £10,725).
|Consolidated Educational Endowments - Income
Department of Education grants projects - Costs|1,478,883
1,478,883
_991,075_
_991,075_|
|---|---|
||**1,478,883**
**1,478,883**
**_991,075_**
**_991,075_**|
Page 23
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|**9.**
**STAFF CHARGES**
Wages and salaries
Social security costs
Other pension costs
Pension administration costs
Employee life cover costs
Travelling and sundry expenses
Corporate Funds - General
Management and administration of the Charity
Consolidated Educational Endowments - Income
Total
The average monthly number of employees was 3 (2022: 3).|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**_£_**
**_£_**
192,980
192,980
_182,249_
_182,249_
20,244
20,244
_20,223_
_20,223_
25,401
25,401
_25,593_
_25,593_
13,240
13,240
_14,524_
_14,524_
8,235
8,235
_8,242_
_8,242_
13,406
13,406
_12,363_
_12,363_|
|---|---|
||273,506
273,506
_263,194_
_263,194_|
||522
522
_148_
_148_|
||522
522
_148_
_148_
272,984
272,984
_263,046_
_263,046_|
||**273,506**
**273,506**
**_263,194_**
**_263,194_**|
|||
The numbers of staff whose emoluments (including taxable benefits in kind but excluding employer's pension contributions) amounted to more than £60,000 were as follows:
||**2023**|**_2022_**|
|---|---|---|
||Number|_Number_|
|£60,001 - £70,000|-|_1_|
|£70,001 - £80,000|-|_-_|
|£80,001 - £90,000|-|_1_|
|£90,001 - £100,000|1|_-_|
None of the Trustees received any remuneration in this or the previous year. Amounts paid to Trustees for reimbursement of expenses totalled £nil (2022 - £nil).
The number of Trustees accruing benefits under defined benefit pension schemes was nil (2022 - nil ).
## **Remuneration of key management personnel**
The cost to the organisation of remunerating Key Management Personnel was £205,880 (2022: £197,825). Costs include gross pay, employer's pension, employer's NI, taxable benefits and contractuals' payments.
In addition to the Trustees, key management personnel are deemed to be those having authority and responsibility, delegated to them by the Trustees for planning, directing and controlling the activities of the Diocesan Board of Education. During 2023 they were:-
Director of Education Deputy Director of Education Deputy Director of Education
John Constanti Virginia Corbyn (Retired - 31/08/2023) Gemma Hitch (Appointed - 01/09/2023)
Page 24
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **10. CONSOLIDATED AND CHARITY TANGIBLE FIXED ASSETS**
|Cost or valuation
_At 1 January 2023_
Additions
Disposals
At 31 December 2023
Depreciation
_At 1 January 2023_
Charge for year
Disposals
At 31 December 2023
**Net book values**
**At 31 December 2023**
_At 31 December 2022_|**Freehold**
**Social Investment**
**Motor**
**Mobile**
**Property**
**Property**
**Vehicle Classrooms**
**£**
**£**
**£**
**£**
_10,007_
_205,857_
_52,134_
_16_
-
-
-
-
-
-
(21,139)
-
10,007
205,857
30,995
16
_-_
_-_
_20,934_
_-_
-
-
11,272
-
-
-
(10,488)
-
-
-
21,718
-
**10,007**
**205,857**
**9,277**
**16**
**_10,007_**
**_205,857_**
**_31,200_**
**_16_**|**Total**
**£**
_268,014_
-
(21,139)|
|---|---|---|
|||246,875|
|||_20,934_
11,272
(10,488)|
|||21,718|
|||**225,157**|
|||**_247,080_**|
Mobile classrooms are written down on acquisition to a nominal value of £1 since they are considered to have no net realisable value to the Board.
The freehold property consists of one piece of land at a cost of £10,000 at the Bennett Memorial CE Secondary School and seven open schools which are included at a nominal value of £1 each which reflects the lack of realisable value of the schools to the Board.
The social investment property comprises additional accommodation purchased for Aylesford St Peter's CE Primary School at a cost of £205,857. The charity received quarterly rental income of £2,170 in respect of this property. No depreciation was charged in the year.
The social investment property is integral to the school, without which the school cannot operate and as such could not be sold without the school closing. The rental yield is approximately 4%. On this basis the Trustees consider £205,857 (2022: £205,857) represents the fair value of the social investment property.
Page 25
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **11. INVESTMENTS**
|**INVESTMENTS**||||
|---|---|---|---|
|**Quoted Investments**
CBF Investment Fund
Sarasin Endowments Fund Class A Inc - DBE
Sarasin Endowments Fund Class A Inc - School Imp.
**Unquoted Investments**
The Diocesan Schools Agency Ltd
Brought forward at 1 January
Disposals
Additions
Unrealised gains / (losses)
Realised gains / (losses)
Carried forward at 31 December|**Cost**
**Market Value**
**2023**
**2023**
**£**
**£**
796,477
3,929,241
1,764,870
2,274,665
150,651
196,561
2,711,998
6,400,467
-
51
-
6,400,518
**2023**
**£**
5,926,592
-
391
473,484
-
**6,400,467**|**_Cost_**
**_2022_**
**_£_**
_796,477_
_1,764,870_
_150,260_|**_Market Value_**
**_2022_**
**_£_**
_3,588,658_
_2,152,328_
_185,606_|
|||_2,711,607_|_5,926,592_|
||-|_-_|_51_|
||-|_-_|_5,926,643_|
||||**_2022_**
**_£_**
_6,734,803_
_-_
_-_
_(808,211)_
_-_|
||||**_5,926,592_**|
All quoted investments are tier one investments.
The £51 unquoted investment relates to the cost of 100% of the issued ordinary share capital of the Diocesan Schools Agency Limited a company registered in England and Wales (Reg no 2892269). It is a trading company which transfers all taxable profits to its holding company, this Charitable Company. The amount transferred to the charity excluding staff costs contribution was £43,538 (2022 - £35,885). The aggregate of share capital and reserves was £200 (2022 - £200).
The CBF Investment Fund's share value will reflect fluctuations in share prices and currency exchange rates. The Fund includes tangible assets such as property. Any property within the Fund is valued by an external property valuer; any such valuations are a matter of opinion rather than fact.
The Sarasin Investment Fund's share value will reflect fluctuations in share prices and currency exchange rates. The Fund includes tangible assets such as property. Any property within the Fund is valued by an external property valuer; any such valuations are a matter of opinion rather than fact.
Page 26
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **12. DEBTORS**
|Consolidated Ed. Endowments - Capital
Other Debtors
Rent Receivable
Consolidated Ed. Endowments - Income
Other Debtors
Contributions from Schools
Diocesan Board of Finance
Unrestricted Funds
Diocesan Board of Finance
Unrestricted Funds
Amounts due from RDBF/The DSA
**CREDITORS**
Consolidated Ed. Endowments - Income
Other Creditors
School Condition Allocations undrawn grants
Contributions from Governors
Diocesan Board of Finance
Bequest for religious artefacts
Trust funds held on behalf of third parties
Audit fees
Corporate Funds - General
Other Creditors
Diocesan Board of Finance
Accruals and deferred income
Audit Fees|**Consolidated**
**Charity**
**_Consolidated_**
**_Charity_**
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**_£_**
**_£_**
-
-
_1_
_1_|
|---|---|
||9,988
9,988
_129_
_129_
5,381
5,381
_-_
_-_|
||15,369
15,369
_129_
_129_
57,488
-
_57,058_
_5,194_|
||-
50,538
_-_
_39,415_|
|||
||72,857
65,907
_57,188_
_44,739_|
||**Consolidated**
**Charity**
Consolidated
Charity
**2023**
**2023**
**_2022_**
**_2022_**
**£**
**£**
**_£_**
**_£_**
156,946
156,946
_415,177_
_415,177_
12,140
12,140
_46,131_
_46,131_
-
-
_5,194_
_5,194_
103
103
_103_
_103_
10
10
_10_
_10_
1,404
1,404
_1,170_
_1,170_|
||170,603
170,603
_467,785_
_467,785_
7,238
6,338
_19,320_
_11,946_
-
-
_-_
_-_
11,466
5,616
_9,555_
_4,680_|
||18,704
11,954
_28,875_
_16,626_|
||189,307
182,557
_496,660_
_484,411_|
## **13. CREDITORS**
Page 27
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14. TRANSFERS BETWEEN FUNDS**
There was a transfer of £56,538 from the Corporate Funds General to the School Improvement Fund that relates to the surplus in respect of the trading subsidiary. There was also a transfer of £613,709 from Capital Fund.
## **15. RELATED THIRD PARTY TRANSACTIONS**
Employees of the Rochester Diocesan Board of Education are jointly employed by The Rochester Diocesan Society and Board of Finance '(RDBF)'. The RDBF operates both a defined benefit pension arrangement and defined contribution pension schemes, shared HR, IT, communication and financial administration services. The RDBF charge an apportionment of office and administration expenses for the shared premises. Some Trustees of the Board of Education are appointed by the Deanery Synods.
During the year taxable profits of £50,538 (2022 £42,885) will be transferred from the Diocesan Schools Agency to the Incorporated Rochester Diocesan Board of Education. Note 12 details the amount outstanding as at 31 December 2023 and 2022. A £6,000 (2022 - £6,000) contribution towards staff costs was received from the Diocesan Schools Agency to the Incorporated Rochester Diocesan Board of Education.
At 31 December 2023 the RDBF held a bank overdraft on behalf of the RDBE totalling £957 (2022: £11,946).
The Board of Education acts as a member with a limited liability of £10 for the following Multi Academy Trusts:- Aquinas, MAST, Amadeus, Trinitas, Alethia, Pilgrim. Additionally the Rochester Diocesan Board of Education also appoints governors to Voluntary Aided and Voluntary Controlled Schools. The Diocesan Schools Agency provides services to the Multi Academy Trusts, Voluntary Aided and Voluntary Controlled Schools at an arms-length basis at the discretion of the schools.
As at the 31 December 2023 the following was owed in respect of related parties
a. £12,140 owed to Church school governing bodies (see note 13 Creditors - contributions from Governors)
b. £6,338 was owed to the Diocesan Board of Finance.
## **16. PENSION SCHEME**
## **Staff Defined Benefit Scheme**
The Rochester Diocesan Society and Board of Finance '(RDBF)' operates a defined benefit pension arrangement called the Rochester Diocesan Staff Retirement Benefit Scheme '(the Scheme)'. This scheme is closed to new members. 1 member of staff employed by the Board is included within this scheme. The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for defined contribution schemes operated by the Employer. No allowance has been made for discretionary benefits. Board of Education staff are jointly employed by the RDBF and RDBE.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Employer must agree with the Trustees of the Scheme that the contributions to be paid to address any shortfall against the Statutory Funding Objectives and contributions to pay for the future accrual of benefits.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2021. The next valuation of the Scheme is due as at 31 March 2024. In the event that the valuation reveals a larger deficit than expected the RDBF may be required to increase contributions above those set out in the existing Schedule of Contributions. Conversely , if the position is better than expected, it is possible that contributions may be reduced.,
The Scheme is managed by a board of Trustees appointed in part by the RDBF and part from elections by members of the Scheme. The Trustess have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme's assets. The Trustees delegate some of these functions to their professional advisers where aapropriate,
There were no plan amendments, curtailments or settlements through the period.
At 31 December 2023 the FRS valuation, which is based on different underlying assumptions to the acturial valuation, calculated a surplus in the Scheme of £2,609k (2022 - £2,697k). Under FRS102 the Employer is only allowed to recognise such assets in its balance sheet to the extent that it can recover the surplus either through reduced contributions in the future or through refunds from the plan. As RDBF in unable to recover the surplus, the asset value of the Scheme at 31 December 2022 reflected in the RDBF accounts is nil. This compares to an asset value of nil at the previous review date.
The Board are not a named legal party to the Scheme and deficits, if applicable, are included within the RDBF annual accounts. The funding arrangements for this scheme are set out in the RDBF financial statements, the Board's proportion cannot be identified and therefore no further details of surpluses/deficits are included within these accounts apart from the annual contributions made by the Board to the Scheme which in 2023 totalled £21,216 (2022 - £21,808).
## **Defined Contribution Scheme**
A defined contribution scheme is operated. Amounts payable in the year amounted to £4,185 in 2023 (2022 - £3,785).
Page 28
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **17. ANALYSIS OF FUNDS**
**1. Analysis of movements in Funds**
- **a Consolidated**
|**a**
**Consolidated**||
|---|---|
|Balance at 1 January 2023
Income in the year
Expenditure in the year
Movements on investments
Transfers between funds
Balance at 31 December 2023
**b**
**Charity**
Balance at 1 January 2023
Income in the year
Expenditure in the year
Movements on investments
Transfers between funds
Balance at 31 December 2023
**2. Analysis of net assets between Funds**
**a**
**Consolidated**
Restricted Funds
Consolidated Educational Endowments - Income
Endowment Funds
Consolidated Educational Endowments - Capital
Unrestricted Funds
Corporate Funds - General
School Improvement Fund
Non-charitable trading funds held by subsidiary|**Unrestricted**
**Non-**
**Charitable**
**Unrestricted**
**Restricted**
**Endowment**
**Total**
**_Total_**
**Funds**
**Trading**
**Funds**
**Funds**
**Funds**
**2023**
**_2022_**
**Corporate**
**Funds held**
**School**
**Consolidated**
**Endowment**
**Funds**
**by**
**Improvements**
**Educational**
**Capital**
**General**
**Subsidiary**
**Income**
**£**
**£**
**£**
**£**
**£**
**£**
**_£_**
(51)
200
270,639
94,655
6,050,489
6,415,932
_6,899,556_
116,402
-
7,091
1,426,453
179,344
1,729,290
_1,683,500_
(59,864)
-
-
(1,799,154)
-
(1,859,018)
_(1,358,913)_
-
-
10,564
-
462,920
473,484
_(808,211)_
(56,538)
-
56,538
613,709
(613,709)
-
_-_|
||**(51)**
**200**
**344,832**
**335,663**
**6,079,044**
**6,759,688**
**_6,415,932_**|
||**Unrestricted**
**Unrestricted**
**Restricted**
**Endowment**
**Total**
**_Total_**
**Funds**
**Funds**
**Funds**
**Funds**
**2023**
**_2022_**
**Corporate**
**School**
**Consolidated**
**Endowment**
**Funds**
**Improvements**
**Educational**
**Capital**
**General**
**Income**
**£**
**£**
**£**
**£**
**£**
**_£_**
-
270,639
94,655
6,050,489
6,415,783
_6,899,407_
57,060
7,091
1,426,453
179,344
1,669,949
_1,629,374_
(522)
-
(1,799,154)
-
(1,799,676)
_(1,304,787)_
-
10,564
-
462,920
473,484
_(808,211)_
(56,538)
56,538
613,709
(613,709)
-
_-_
**-**
**344,832**
**335,663**
**6,079,044**
**6,759,539**
**_6,415,783_**
**Tangible**
**Fixed**
**Net**
**Total**
**_Total_**
**Fixed**
**Asset**
**Current**
**2023**
**_2022_**
**Assets**
**Investments**
**Assets**
**£**
**£**
**£**
**£**
**_£_**
10,007
335,663
(10,007)
335,663
_94,655_
215,150
5,868,243
(4,349)
6,079,044
_6,050,489_
-
-
(51)
(51)
_(51)_
-
-
344,832
344,832
_270,639_
200
200
_200_
**225,157**
**6,203,906**
**330,625**
**6,759,688**
**_6,415,932_**|
|**b**
**Charity**
Restricted Funds
Consolidated Educational Endowments - Income
Endowment Funds
Consolidated Educational Endowments - Capital
Unrestricted Funds
Corporate Funds - General
School Improvement Fund|**Tangible**
**Fixed**
**Net**
**Total**
**_Total_**
**Fixed**
**Asset**
**Current**
**2023**
**_2022_**
**Assets**
**Investments**
**Assets**
**£**
**£**
**£**
**£**
**_£_**
10,007
335,663
(10,007)
335,663
_94,655_
215,150
5,868,243
(4,349)
6,079,044
_6,050,489_
-
-
-
-
_-_
-
-
344,832
344,832
_270,639_|
|---|---|
||**225,157**
**6,203,906**
**330,476**
**6,759,539**
**_6,415,783_**|
Page 29
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **17a. ANALYSIS OF FUNDS**
**3.** Total Return Approach to investment of permanent endowment
|**At 1 January**
Gift component of the permanent endowment
Unapplied total return
**Total**
**Movements in the reporting period**
Transfer to trust for investment - indexation
Investment return: dividends and interest
Investment return: realised and unrealised gains and (losses)
**Total**
Unapplied total return allocated to income in the reporting period
**Net movement in the reporting period:**
Gift component of the permanent endowment
Unapplied total return
**Total at 31 December**
**4 Restricted Funds**
Consolidated Educational Endowments - Income
Department of Education Grants
Consolidated Educational Endowments - Income
Department of Education Grants|**Trust for**
**Unapplied**
**Total**
**investment**
**total return**
**2023**
**£**
**£**
**£**
4,217,168
-
4,217,168
-
1,833,321
1,833,321
4,217,168
1,833,321
6,050,489
168,687
(168,687)
-
-
179,344
179,344
-
462,920
462,920
168,687
473,577
642,264
-
(613,709)
(613,709)
168,687
(140,132)
28,555
4,385,855
-
4,385,855
-
1,693,189
1,693,189
**4,385,855**
**1,693,189**
**6,079,044**
**Balance at 1**
**January 2023**
**Income**
**£**
**£**
_(307,434)_
13,996
_402,089_
1,412,457
**_94,655_**
**1,426,453**
**-**
**Balance at 1**
**January 2022**
**Income**
**£**
**£**
-
6,130
-
1,393,164
**-**
**1,399,294**|**Trust for**
**Unapplied**
**Total**
**investment**
**total return**
**2023**
**£**
**£**
**£**
4,217,168
-
4,217,168
-
1,833,321
1,833,321
4,217,168
1,833,321
6,050,489
168,687
(168,687)
-
-
179,344
179,344
-
462,920
462,920
168,687
473,577
642,264
-
(613,709)
(613,709)
168,687
(140,132)
28,555
4,385,855
-
4,385,855
-
1,693,189
1,693,189
**4,385,855**
**1,693,189**
**6,079,044**
**Balance at 1**
**January 2023**
**Income**
**£**
**£**
_(307,434)_
13,996
_402,089_
1,412,457
**_94,655_**
**1,426,453**
**-**
**Balance at 1**
**January 2022**
**Income**
**£**
**£**
-
6,130
-
1,393,164
**-**
**1,399,294**|**_Trust for_**
**_Unapplied_**
**_Total_**
**_investment_**
**_total return_**
**_2022_**
**_£_**
**_£_**
**_£_**
_3,861,875_
_-_
_3,861,875_
_-_
_2,791,730_
_2,791,730_|
|---|---|---|---|
||||_3,861,875_
_2,791,730_
_6,653,605_
_355,293_
_(355,293)_
_-_
_-_
_178,753_
_178,753_
_-_
_-781,869_
_-781,869_|
||||_355,293_
_-958,409_
_-603,116_
_-_
_-_
_-_|
||||_355,293_
_-958,409_
_-603,116_
_4,217,168_
_-_
_4,217,168_
_-_
_1,833,321_
_1,833,321_|
||||**_4,217,168_**
**_1,833,321_**
**_6,050,489_**|
||||**Expenditure**
**Transfers**
**Balance at 31**
**December**
**2023**
**£**
**£**
**_£_**
(320,271)
613,709
-
(1,478,883)
-
335,663|
|||**_94,655_**
**1,426,453**
**-**|**(1,799,154)**
**613,709**
**335,663**|
|||**Balance at 1**
**January 2022**
**Income**
**£**
**£**
-
6,130
-
1,393,164|**Expenditure**
**Transfers**
**_Balance at 31_**
**_December_**
**_2022_**
**£**
**£**
**_£_**
(313,564)
-
_(307,434)_
(991,075)
-
_402,089_|
|||**-**
**1,399,294**|**(1,304,639)**
**-**
**_94,655_**|
Page 30
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **18. TRUSTEESHIPS**
The Board of Education act as Trustees for the following Church of England Schools within the Diocese.
Belvedere Trinity CE Secondary School Leybourne St Peter and St Paul CE Primary School Belvedere St Augustine's of Canterbury CE Primary School Northfleet St Botolph CE Primary School Bennett Memorial Diocesan CE Secondary School Penge St John CE Primary School Bredhurst CE Primary School Pilgrim CE Primary School Broadwater Down St Mark CE Primary School Platt CE Primary School Bromley Bishop Justus CE Secondary School Rainham St Margaret CE Primary School Bromley St Mark CE Primary School Rusthall St Paul CE Primary School Bromley Parish CE Primary School Seal CE Primary School Burham CE Primary School Sevenoaks St John CE Primary School Chatham St John CE Infants School Shorne CE Primary School Chiddingstone CE Primary School Snodland CE Primary School Chislehurst St Nicholas CE Primary School Southborough CE Primary School Cliffe St Helen CE Primary School St Paul's Cray CE Primary School Crayford St Paulinus CE Primary School St Mary's Island CE Primary School Dartford Holy Trinity CE Primary School Stone St Mary's CE Primary School Ditton CE Primary School Strood St Nicholas CE Primary School Erith Christchurch CE Primary School Sundridge & Brasted CE Primary School Falconwood Bishop Ridley CE Primary School Sutton at Hone CE Primary School Grain St James CE Primary School Swanley St Paul CE Primary School Gravesend Holy Trinity CE Primary School Swanley St Mary CE Primary School Gravesend St George's CE Secondary School Troy Town St Margaret CE Primary School Hever CE Primary School Trottiscliffe CE Primary School High Brooms St Matthew CE Primary School Tunbridge Wells St James CE Infants School Horton Kirby CE Primary School Tunbridge Wells St James CE Junior School Hunton CE Primary School Tunbridge Wells St Marks CE Primary School Ide Hill CE Primary School Tunbridge Wells St Peters CE Primary School Keston CE Primary School Wateringbury CE Primary School Knockholt St Katharines CE Primary School West Kingsdown St Edmund's CE Primary School Lamorbey Holy Trinity CE Primary School West Malling CE Primary School Lamberhurst St Mary's CE Primary School Westerham Churchill CE Primary School Langafel CE Primary School Wrotham St George CE Primary School
## **19. TRUST FUNDS**
At the year end the charitable company held, in separate deposit accounts, £1,987,699 (2022 - £1,875,162) on behalf of a number of Church of England schools.
|_At 31 December 2022_
New money received
Purchase of investments
Sale of investments
Interest and dividends received
Rentals received
Withdrawals in respect of sundry grants
Investment gain / (loss)
At 31 December 2023|£
_1,875,162_
46
-
-
79,580
-
(1,585)
34,496|
|---|---|
||**1,987,699**|
Page 31
**INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **20. CONSOLIDATED COMPARATIVE ANALYSIS OF FUNDS 2022**
## **1. Analysis of movements in Funds**
|**Unrestricted Unrestricted**
**Restricted**
**Endowment**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2022**
**Corporate**
**School**
**Consolidated Endowment**
**Funds**
**Improvements Educational**
**Capital**
**General**
**Income**
**£**
**£**
**£**
**£**
**£**
_Balance at 1 January 2022_
_-_
_245,802_
_-_
_6,653,605_
_6,899,407_
Income in the year
45,563
5,764
1,399,294
178,753
1,629,374
Expenditure in the year
(148)
-
(1,304,639)
-
(1,304,787)
Movements on investments
-
(26,342)
-
(781,869)
-808,211
Transfers between funds
(45,415)
45,415
-
-
-
Balance at 31 December 2022
**-**
**270,639**
**94,655**
**6,050,489**
**6,415,783**
**2. Analysis of net assets between Funds**
**Tangible**
**Fixed**
**Net**
**Total**
**Fixed**
**Asset**
**Current**
**2022**
**Assets**
**Investments**
**Assets**
**£**
**£**
**£**
**£**
Restricted Funds
Consolidated Educational Endowments - Income
_10,007_
_-_
_84,648_
_94,655_
Endowment Funds
Consolidated Educational Endowments - Capital
237,073
5,740,986
72,430
6,050,489
Unrestricted Funds
Corporate Funds - General
-
51
(51)
-
School Improvement Fund
-
185,606
85,033
270,639
**247,080**
**5,926,643**
**242,060**
**6,415,783**|**Unrestricted Unrestricted**
**Restricted**
**Endowment**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2022**
**Corporate**
**School**
**Consolidated Endowment**
**Funds**
**Improvements Educational**
**Capital**
**General**
**Income**
**£**
**£**
**£**
**£**
**£**
_-_
_245,802_
_-_
_6,653,605_
_6,899,407_
45,563
5,764
1,399,294
178,753
1,629,374
(148)
-
(1,304,639)
-
(1,304,787)
-
(26,342)
-
(781,869)
-808,211
(45,415)
45,415
-
-
-|**Unrestricted Unrestricted**
**Restricted**
**Endowment**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2022**
**Corporate**
**School**
**Consolidated Endowment**
**Funds**
**Improvements Educational**
**Capital**
**General**
**Income**
**£**
**£**
**£**
**£**
**£**
_-_
_245,802_
_-_
_6,653,605_
_6,899,407_
45,563
5,764
1,399,294
178,753
1,629,374
(148)
-
(1,304,639)
-
(1,304,787)
-
(26,342)
-
(781,869)
-808,211
(45,415)
45,415
-
-
-|
|---|---|---|
||**-**|**270,639**
**94,655**
**6,050,489**
**6,415,783**|
|||**Tangible**
**Fixed**
**Net**
**Total**
**Fixed**
**Asset**
**Current**
**2022**
**Assets**
**Investments**
**Assets**
**£**
**£**
**£**
**£**
_10,007_
_-_
_84,648_
_94,655_
237,073
5,740,986
72,430
6,050,489
-
51
(51)
-
-
185,606
85,033
270,639|
|||**247,080**
**5,926,643**
**242,060**
**6,415,783**|
Page 32
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **21. CONSOLIDATED COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2022**
|**INCOME FROM:**
Charitable activities
Other trading activities
Investments
Other income
**TOTAL INCOME**
**EXPENDITURE ON:**
Other trading costs
Charitable activities
Schools' work
Department of Education grants projects
**TOTAL EXPENDITURE**
**Net income/(expenditure) for the year**
**before gains/losses on investments**
Unrealised gains / (losses) on investments
**Net income/(expenditure) for the year**
Transfers between funds
Transfers between funds - Total Unapplied Return
**Net movement in funds**
Fund balances brought forward as previously stated
**Fund balances carried forward**|**Unrestricted**
**Restricted**
**Endowment**
**Funds**
**Funds**
**Funds**
**Corporate**
**Consolidated**
**Total**
**Funds**
**Educational Endowments**
**2022**
**General**
**Income**
**Capital**
**£**
**£**
**£**
**£**
-
1,393,164
-
1,393,164
99,541
-
-
99,541
5,912
6,130
170,072
182,114
-
-
8,681
8,681|
|---|---|
||**105,453**
**1,399,294**
**178,753**
**1,683,500**|
||54,126
-
-
54,126
148
313,564
-
313,712
-
991,075
-
991,075|
||**54,274**
**1,304,639**
**-**
**1,358,913**|
||**51,179**
**94,655**
**178,753**
**324,587**|
||(26,342)
-
(781,869)
(808,211)
**24,837**
**94,655**
**(603,116)**
**(483,624)**|
||-
-
-
-
-
-
-
-|
||**24,837**
**94,655**
**(603,116)**
**(483,624)**|
||_245,951_
_-_
_6,653,605_
_6,899,556_|
||**270,788**
**94,655**
**6,050,489**
**6,415,932**|
Page 33
## **INCORPORATED ROCHESTER DIOCESAN BOARD OF EDUCATION AND ITS SUBSIDIARY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **22. CONSOLIDATED COMPARATIVE BALANCE SHEET AT 31 DECEMBER 2022**
|**Fixed Assets**
Tangible Fixed Assets
Investments
**Current Assets**
Debtors
CBF Deposits
Sarasin Deposits
Bank Deposits
Cash at Bank - Current Account
Cash at Bank - Business Reserve
**Current Liabilities**
Bank overdraft
Creditors
**Net Current Assets / (Liabilities)**
Total Assets Less Current Liabilities
**Net Assets**
**Funds**
Unrestricted - General
Designated - School Improvements
Restricted
Endowment
Non-charitable trading funds held by subsidiary|**Unrestricted**
**Restricted**
**Endowment**
**Funds**
**Funds**
**Funds**
**Corporate**
**Consolidated**
**Total**
**Funds**
**Educational Endowments**
**2022**
**General**
**Income**
**Capital**
**£**
**£**
**£**
**£**
-
10,007
237,073
247,080
185,606
-
5,740,986
5,926,592|
|---|---|
||185,606
10,007
5,978,059
6,173,672
57,058
129
1
57,188
33,634
446,664
-
480,298
395
13
-
408
22,970
-
-
22,970
-
(47,429)
72,429
25,000
-
153,056
-
153,056|
||114,057
552,433
72,430
738,920
-
-
-
-
28,875
467,785
-
496,660|
||28,875
467,785
-
496,660
**85,182**
**84,648**
**72,430**
**242,260**|
||**270,788**
94,655
**6,050,489**
**6,415,932**|
||**270,788**
**94,655**
**6,050,489**
**6,415,932**|
||(51)
-
-
(51)
270,639
-
-
270,639
-
94,655
-
94,655
6,050,489
6,050,489
200
-
-
200|
||270,788
94,655
**6,050,489**
**6,415,932**|
Page 34