Charlty reglstratlon number 1067653 Company reglstratlon number 03489945 (England and Wales) MONMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
MONMOUTH DIOCESAN BOARD OF FINANCE CONTENTS Page Trustees, report Statement of trustees, responsibilities 16 Independent auditorfs report 17-19 Statement of finanaal activities 20 Balance sheet 21-22 statement of cash flows 23 Notes to the financial statements 24-44
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present thelr annual report and financial statements for the y8ar ended 31 December 2023. The financial statements have been prepared in accordan with the accounting policies set out in the notes to the financial statements and comply with the charivs goveming document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice appllcable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).. ObJo¢tlves and actfvllle8 The role of the Monmouth Diocesan Board of Finance (DBF) is tt) ensure that there is suffident revenue to maintain the cost of mlnlsty across the diocese. and to enable the admlnlstrative functions to be properly exercised. This helps to enable a sustainable 8nd transforming Christian ministy across the diocese. As a charity, the DBF monitors the finanS of the diocese to support the mlsslon and ministry of the Church in Vkles in the Diocese of Monmouth (pastoral, evangelistic and social). By far the largest part of the DBF budget s dedlcated to supporting the cost of clergy in the diocese - their stipends, parsonages and other associated costs. In supporting this work it provides a benefit to the publlc by . Promoting Christian values, and Servi by members of the church in and to their communities, for the benefit of individuals and society as a vthole Providing facllltles for public wotship, pastoral care and spiritual development, both for its members and for anyone who wishes to benefit from what th8 church offers. Publlc Beneflt The trustees have paid due regard to the Charity Commission's guidance on public benefit in decldlng the activities undertaken during the year. The trustees are satisfied that the infonnation provlded in the report and accounts meets the public benefft reporting requirements.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance Ministry remains the largest expenditure of the DBF and a key resource for the mission work of the church. Ministry is delivered in many different ways by a significant number of people, many of whom generously give their time freely for roles within churches and ministry areas. Fomal ministry in the traditional sense is delivered by a combination of ordained, lay licensed and commissioned ministers. Supporting those involved in ministry to ensure that their yrk remains fulfilling and positive rnaInS a priorty for the Bishop, Archdeacons and the DBF. This recognises that vthilst the needs of ministry may change, Ihe call to serve and to proclaim the gospel through )Nords and actions remains constant. As far as possible, the DBF is seeking to lessen the administrative burden from clergy arKI lay people so that they can focus on the requirements of their ministry and the needs of their community. During 2023 new resources to support admln In MAS were discussed and agreed upon, ready for implementatlon In 2024. The continued d8V8lopm8nt of 811 forms of ministry is essential. and worklng alongslde those who are considering their voc8Èion is 8n Important part of the ministry development wo. To support this, the dioc8S8 IBS a te8n7 01 VOG8tions adviso who WO with th8 Dioc8san Director of Voc8tions, Rebecca Stevens. In the diocese we are fortunate to have so many committed lay and ordained people who are working hard to share th8 message of the gospel through their words and actlons. We hope that their passion and enthusiasm can be maintained, and we recognise the need to care for all involved in ministry. During the year a Wellbeing Guide VRS produced which offers some practical ideas about caring for lay and ordalned people in ministry. A number of sessions have been dedicated to this subject in 2023 including at the clergy residential conference and in continuing ministerial development (CMD) days. LenSed Ministry figures of mln15ty tipendiary Clergy at the end of 2023 ipendiary Clergy (budgeted figure} Non-stipendiary Clergy (not house for duty) at the end o 023 Non-stipendiary Clergy {house for duty) at the end of 2023 Lay licensed Ministers at the end of 2023 Number 50.5 13 In 2023 the Diocese of Monmouth received £505,000 from the Church Growih Fund to support the cost of stipendiary, house for duty and salaried lay mlnlsty. This is part of a 10-year grant to support ministry in the dlocese and has enabled us to commit to retaining current clergy numbers while we work to embed our diocesan vision and support our ministry areas to develop and enh8nce an oufvlard-looklng culture that is focused on growth and evangelism.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Ordinations The ordinalion service took place in June 2023 In Newport Cathedral which was packed for this wonderful occasion. The Revd Canon Dr Mark Clavier. who had led the prordinatIon retreat, spoke about the joy and privilege of ministry. Bishop Chery ordained 7 Priests and 3 Deacons. ORDAINED PRIEST. Ruth Rowan to continue to Se in in the Islw Ministry Area (Stipendiary) Tlna Parry to continue to serve in the East Cardiff Ministry Area (Stipendiary) Sarah Rosser to continue to serve in the Heart of Monmouthshire Ministry Area (StiP8ndiary) Rachel Nelmes to continue to serve in the Mynydd Bethvellte Ministry Area (NSM) Danlel Damon to continue to serve in the Monmouth Marches Ministy Area (NSM) Glen Wilkins to continue to Serve in the Beechwo(Kl Ministry Area (NSM) Janet Pain to continu8 to senie in the Monmouth Marches Ministy Area (NSM) ORDAINED DEACON: The Revd Julla Dutham to se in the Tredegar Park Ministry Area The Revd Dawn Lindsay to serve in the Newport North Vst Ministry Area The Revd Wllllam Savage to serve in the Heart of Monmouthshire Ministry Area (NSM) Commissioned Lay Ministry Commissioned lay ministry remains an integral part of our mlnlstry as 8 church in a variety of way3 and this Is something that we are keen to continue to develop. In 2023 a new package of resources was released for the training of lay worship le8ders and lay pastoral assistsnts. The resources vRre launched al an evening lebrating lay ministy vthich was held at st Mark's Church, Gold Tops, Newport. Around 100 people attended a really positive evening with tslks from Bishop Chery and Zoe Ward, the Church Resource Officer. The Church Resource Officer is a new role which started In 2023 and indudes the promotion. and organisation of training, for those conslderlng commissioned ministry. A good number of ministry areas have engaged very positively with the new materÈals and with the continued exploration and development of commissioned lay ministy. In a many places commissioned lay mlnlsters are already contrlbLrting a realty vibrant and enthuslastlc mlnlslry, and we hope thls wlll continue to grow across the diocese. Lay ministy is not a back stop to cover for a lack of ordained ministers. but an opportunity for lay people to use their gifts in leading worship and pastoral ca. By engaging with people ar communities In 8 way that can be fresh and energising. Clergy Conference From 2nd- 5th October 2023 there was a clergy residential conference held at Yarnfield Park in Staffordshire. Although clergy residential conferences have traditionally been held every 3 years or so. the diocese has not hetd one since 2017. The theme of this conference was 'Rejoicing in Hope,. There an opening address from Bishop Cherry and the keynote speakers were Revd CarK)n Dr Trys Owain Hughes, the Provinicial Director of Ministry Development for the Church in Vvales, and Revd Liz Camelley from the Church Urban Fund (who also led a workshop). There were also workshops led by Zoe Waril (Unexpected stewardship), Revd Gillian Straine (Human flourishing through vocation) and Revd Canon Dr Manon James (Humour and ministy). Worship was organised by Revd Ruth Rowan and Revd Lisa Taylor and was mosvy led by those seNing their curacies in the diocese. There was a good opportunity for clergy to ggt to know one other better with social 8Ctivitss such as 8 quiz and karaokel To condude the confen there was a Eucharist led by Bishop Ch8ny. Feedback from the conference was extremely positive for the content and the opportunities for fellowship.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 CMD In 2023, as already detailed, ther8 was a clergy residential conference, however ongolng tralnlng for clergy and licensed lay ministers remained Important. The CMD days this year were.. February 2023 - Canon Andrew Lightbown and Ven lan Rees . Christian imagination thinking about how we use imagination to engage more closely with the blble June 2023 - Family links (Peter Leonard and Rowen Smtth): Understanding emotional health December 2023 - The Revd Canon Dr Jordan Hillebert: A theology of prayer and a prayerful ministy Newly Licensed ministers In addition to the Provincial training organised by St Padam's, the diocese also has an internal programme for those in their first 3 years of ordained or licensed ministry. This is to help further resource and equip those who are new to this ministry. For 13 years the group has been organised by Revd Jeremy Harris who has worked tremendously hard and offered a varied programme even through the challenges of the pandemic. In July 2023, he stepped bad( from this role which has now been taken on by Revd Sally Ingle-Gillis. A new programme has been began In the summer of 2023 and includes: Newly licensed rninisters meeting the diocesan office staff to discuss their roles and things the office can offer as support. A quiet day Wellbeing in ministry A thln place (thinking about Healing and loleneSS ministy and th8 work of the Diocesan Deliveran team) A Preaching Festival Ministy Areas All of the 16 mlnlstry areas in the diocese were commissioned by January 2023, thanks to th8 hard work of clergy and some really dedicated and committed lay people. This has represented a major organlsatlonal change aimed at bringing churches closer together to Improve the opportunities for mission throughout the diocese. Ministy Areas allow groups of churches to build on a greater variety, and a larger number, of gifts and skills than was previously possible. It is recognised that the changes have not always been easy, and the Diocesan Board of Finance have spent considerable time considering how ministry areas can best b8 SUPPOrted to ensure that their primary focus can be on mission. Some of the results of those discussions have resulted In the following: NetwOS A key aspect of support established in 2023. has been the setting up of the network meetings for key roles in the ministry areas. These roles include the Ministry Area Wardens, Lay Co-chalrs, Ministry Area Treasurers, Ministy Area Safeguardlng Officers, and MA Propety Leads. These meetings have been w811-att8nded and proved helpful as those in similar ro18s have been able to share good practice and to learn trom each other's experiences. They have also enabled open dialogue to discuss the issues that might be arising and to identify where more support is needed. This has realty h8lp8d to improve channels of communication between the diocese and the ministry areas. These neorkS wlll contlnue to play an important part in the life of the diocese in future years. Faith ii? our Future Planning The diocesan vision was launched In October 2022 and ministry areas have engaged posilively with lh8 vrfork on the five branches of the vision: discipleship. st8wardship. social justice, equality and diversity end the environment. As part of the support for this work, 'Falth In our Future, planning sessions have been held in mlnlsty areas to develop bespoke goals which help each ministry area to take the vision forw8rd in their own context. These goals aim to grow the church both spiritually and numerically.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 Additional slaff The Diocesan Board of Finance are committed to priorlilslng roles in the diocesan office that 3UPFQrt ministy areas. Throughout 2023, roles in the office have been looked at and, in some cases adjusted, to ensure good support can be given. In response to requests for 8UPPOrt from mlnistry areas. the Church Resource Officer was a new rob for 2023 to provide training for commlssloned lay ministy and to promote 8nd encourage good stewardship. This work as developed throughout 2023 with the launch of a new stewardship workshop at the October Diocesan Conferen. The Diocese of Monmouth has also joined together with the Diocese of Llandaff and The South East Vi&le8 Deaf Church Association to recruf( a Deaf Community Mission Outreach Vvorker. Nicola Roylance is building on the rk begun by Mary Moore In building new links wlth members of the de8f community, particularly reaching out to engage more closely with those not involved with deaf clubs, whilst maintsining and developing the links already made with those clubs. Spnng and Diocesan Conf8Trnces In the Sprlng conferenc• we welcomed Blshop John Lomas (SvRnsea & Brecon) who spoke Inspiringly about the need for confidence In mission and the importance of focusing on our priorilies as the church. He also spoke about hls experience of Ministry Area t8ams (good and bad) and how teams can function w811 and positively with a mission focus. Wth the theme 'Moving at the Sp88d of God., Bishop John talked about times where he was out of step durfng his military days, to a time when he very much felt Yhe intemal thythm that God sets within us.. As well as inspiration, his talk reminded us of the power of being in the right plac8, at the right time. He gave those present a powerful encouragement and challenge by saying- °How many articles have you seen In Ihe newspapers, Church fimes. or whatever else, that $8y by the year 2033 there will be nobody left in the Churvh of Wales, or the Church of England, because that is the point in decline where we hit the bottom lin8 and that it's all overf/ °It's not tme, it never has been tme and it ngver will be Èn, and all we have to do, I belleve, as a church, is to move into that place where God acts snd to hit that mart at the right time, in the right ftame of mind, wtih the equlpmenf to Carry out the job th8t He has told us to do. In the right fr8me of mind th8t W8 can lo each other8S we love ourselves and we can be 8 team that worts together.. More than 150 people attended our October diocesan conference and the energy and engagement during the moming was amazing l This year's theme was about %velcomelcroeso' and how it is a key aspect of our diocesan vision and essential for gr0h. Two new diocesan ojurses were launched. 'Extending our welcome. is a very practical course, and 'Croeso' is a discipleship course exploring how we, in welcoming others, respond to the Y1CoMe we are offered by God. Wellbeing gulde- 'C8ring for those who caring, The W811being guide was issued after extenslve consultation with clergy and members of the neOrk groups. This offers guidance in caring for lay people and clergy and emphaslses the importance of recognising that rythout caring well for ourselves and those around us, we will be far less able to care for others. Evangelism Fund Project During 2023 the diocese submitted Its application to Evangelism Fund Committee for £3m of additional funding to establish four new worshipping communit188 throughout the diocese. This fundlng, which was confimed in December 2023. will provide a team of staff for five years in each location who will be embedded within the ministy areas.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The first locations have been identified as Tredegar and Chepstow and recruitment for the team commenced in 2024. Funding is available for an additional two location5, and ministry areas will be asked to bid for these once the first two teams are in place. ,-hurches Unlocked In June 2023, 10 Ghurches from the diocese took part in the Churches Unlocked festival. Working in partnership with the DI0Se of Llandaff, the week was organised to encourage churches to open, for events and to encourage people to come in, look around, and perhaps tske time for prayer and reflection. The work of local volunteers was rewarded with good attendance and excellent feedback. It is hoped that the lessons for this festival can encourage more churches to be open more frequently. By doing so, more people can experience these important buildings and we have the opportunty to tell the gospel story through our buildings, our displays and, of course, our welcome. Eco.Church The environment is one of the five branches of our diocesan vision and, during 2023, work was ongoing to engage with both the Church in Wales Net Zero tsrgets and the A Rocha EcrChurch Awards. The diocesan commitment to safeguarding the integrity of creation was confinned in the October Diocesan Conference with successful motion to approve a Diocesan Environmental Policy. This policy sets out a lontemi plan to make positive environmental changes in every aspect of our diocesan life. During 2023, local churches and ministry areas continued to engage with Eco-Chur¢h, galnlng thelr bronze and silver awards. Finance and Administration Diocesan Office Team The diocesan office team are responsibl8 for the administration, financial management and governartt for the Diocesan Board of Finance, as well as provldlng support to ministry areas. The priority for 2023 has been to develop closer relationshlps wlth ministry areas through new initiatives such the neOrk meetlngs as the Board recognise that we are all part of one team who ar8 committed to the growth of the church. The increased provision for support is an ongoing prOs8 involvlng contlnued dialogue but we are confident that, with the increased levels of trust and co-operation, this will continue to progress pc>sitiv81y. Dioccsan Education and Church Schools The Education teams comprises of Beccie Morteo, Head of Education and Deborah Griffiths, School Support Officer vtho work across both Llandaff and Monmouth Diocese The team continues to provide advice with regards to statutory responsibilities around areas such as admissions, appeals and CRAMP, goveming body policie5 and procedures including appointment of Foundation Govemors. professional development and curriculum updates. Headteacher meeting5 take place tennly either face to fa or online. Visits to schools are on request )hryth the aim of vi5its.ng each school at least once a year. An Education Committee has now been established to monitor and develop the work of the education team across. This is chaired by Directors of Mission from each diocese and consists of Headteachers. clwgy and lay representatives. Ive continue to work closely with schools of sanctuary and saw another school in Monmouth diocese recognised this year. We have supported schools to engage with the Archbishop Young Leader5 project and worked alongside colleagues at Christian Aid to develop the Global Neighbours Cymru project. These three projects will be the main focus of the Church in Wales education team over the next few years. Alongside colleagues we have developed a curriculum guidance section on tho Church in Vrfales website for all schools to attess in order to ensure they meet requiremenls.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 We have supported clergy and foundation govemors through training sessions on the curriculum. prayer spaces and a taster session of Godly play. Following this session a Godly play thre&day training event took pla in St Padam's. One of our schools was part of this and will now support other schools who are interested in Godly play approaches. Two Monmouth schools have vrt)rked with us on a nation81 Religion, Values and Ethics research network, the results of vthich Nlill be published on the Church in Wifrales website. Vle have secured additional Welsh Government funding for a number of buildings projects induding an urgent roof replacement and repairs to windows. This is alongside the CRAMP grant which has been distributed to schools. We accessed additional funding to run a play on the life story of Bishop Wlliam Morgan In Newp)rt Cathedral. The event was open lo all Monmouth schools and included a travel grant. A welcome Eucharist for Headteachers and two leavers sep4ice were also held in the Cathedral. As part of the leavers seprfice. provided all schools with a three-month trial subscription to Hymnpact. a music resour developed by the Royal College of Church Music. The Parsonag8 Board The DBF makes an annual contribution to the Parsonag8 Board Scheme, pald quarterfy, to enable the Parsonage Board to maintain the pansonages within the Dlocese. The Gapital funds of the Parsonage Board, which are used to cary out major improvements or purchase new properties when required, are held and administered by the RB. The parsonages are vested in the RB. The trustees receive quarterly reports from the Parsonage Board. In 2023 there were 68 parsonages in the schem8 and the DBF contributed £408,735 for maintenance work. 13 parsonages were rented to generate additional income. The Parsonage Board, in addition to ensuring that housing is suitable for dergy, have also been boking at issues of energy performance and efficiency in order to help support the Church in Wales. commitment to achieving net zero carbon by 2030. Diocesan Grants Church and Churchyard RepairFund Each year the Diocese of Monmouth offers grants to churches through the Churches and Pastoral Committee and the DBF makes a contribution to these grarrts. In rent years. these grants have been given to support repairs. maintenance and improvements to churches, church halls and churchyards. This Churches and Pastoral grant fund is available lo all churches in the di0Se and the appli(2tions are reviewed quarterly by a grants Committ and reported to the Diocesan Standing Committee at each of the meetings. Feedback for churches and ministry areas throughout the diocese demonstrates the value of this repalr. maintenance and improvements fund. especially at a time when churches are finding tt increasingly more dfficult to apply for extemal funding for essential works to their buildings. ministryAa Developmerjt Gr8nt The Ministy Area Development grant is a DBF fund with the primary purpose of providlng flnancial support to minlsty areas to help vAth the transition from 121 smaller parishes to 18 larger ministy area. Applications to the fund will be different depending on the needs of each area but have included financial support to set up ministry area offices with furniture and W-FI, Church Suite membership {CRM) sothre, PA systems and brandlng.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 MA Adminisfralors Grant In 2021 the DBF set up a separate nd specifically allocated to support mlnlsty areas V¥ith their adrninistrative functions. This grant fund, which totals £172,000, equates to £10.750 per MA over four years. Funding has been calculated on the basis of approximately 7 hours of administrative support 8 week per MA. It will be made available to MAS in full for the first year but, each subsequent year. the level of funding will be reduced as the MA develops. The funding is intended to enable an additional professional resource to tie together work that is already being done by volunteers and clergy to ensure the MA Is compliant and up-ttrdate with insurance, HMRC, Charity Commlssion, bank records, safeguarding training and DBS checks. Vthen available, administrators will also manage a database of regular givers and assist members of the MAC with the administrative elements of a stewardship campaign. As all ministry areas were commissioned by January 2023 more of these grants have been tsken up in 2023 and are continuing into 2024. C4)ntOCtl8ss Giving Since it was taunched in 2020 many more church and ministry areas have taken up Ihe DBF financial support allow them to have contactless giving devices. The totsl amount of gr8nts given in 2023 was £3.133 xross 5 ministry areas.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Flnanclal r•vlow Financial Review The Diccesan Board of Finance made an unrestricted surplus for the year of £849.900 and a restrlcted surplus of £239,099. £598.926 of the unrestricted surplus has been designated by the Board to fund the ntral ministry area admin and finance SUPPDrt posts. The majority of the restricted funds sutplus arises from a large proportion of the parsonage experKliture being capitsl repairs funded by the improvement fund and not the diocesan repairs fund. Unrestricted reserves at 2023 amounted to £5,660,120 of which £406,509 is expressed by tangible fixed assets Ythich are not readily saleable (the Diocesan Office on Caerau Road, Newport) and £1,246,518 has been designated for specific projects {see note 21). ReseNes are tied up in investment assets which are maintained by an Investment manager to genere income. The DBF u8e the income generated from these investments to support their annual budget. Restrlcted funds amounted to £797,371 (see note 20). DonatnS 8nd legacies During 2023 the DBF received £3.840.507 in donations. Of this, £2,057,795 came from Ministy Shar8. Thé Representative Body provid8d £556,257 in Partn8rship Funding, £598.926 of Structural Resilience funding and £505,000 from the Growth Fund. Other trnding activities The Parsonage Board raised £144,098 from the rental of parsonages in 2023. These funds are restricted and are used to support the repair and maintenance of all parsonages. Inv&stm8nts The investment manag8rs achieved their income target. The DBF received £169.177 in investment income in 2023. Expenditure Support for Ministry The largest proportion of expenditure comes under the heading 'Support for Ministrl and consists of clergy sts stipends, council tax and maintenance of the parsonages. In 2023, the cost of this was £2,139,073. Support lor Parishes In 2023 support for ministry areas totalled £332.5%. A significant amount of the unrestricted surplus has been designated specifically for additional investment to support ministy areas, with staff recruited in 2024. Gr8ntS 8nd other financial support The DBF made payment of £109,699 in grants in 2023. This included the annual grants paid to the Cathedral, Bishop's Funds. the RB Church Building Emergency Fund. the DBF contribution to the Churches and Pastoral Committee. Mlnistry Admlnlstrator and Ministy Area Development Grants are stlll belng awarded from their respectlve funds. Support Costs Support costs relate to Diocesan Office and DBF staff costs.
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Investment powers and oversight The income generated from investments are used to support the DBF annual budget. Investment strategy is detennined by the Investment Advisory Group (which also oversees investments on behalf of the Twst). Representstion from members of the DBF and the Trust sit on the Investment Advisory Group. The portfolio of investments is managed by investrnent managers who have authority to buy and sell without reference to trustees. All purchases and sales are notified to the Secretary and a full review of the charity'8 portfolio is undertaken twice each year by the Investment Advisory Group with the investment managers. The members of the Investment Advisory Group also receive quarterly reports, including benchmark indices. The investrnent managers are required to ensure that the ethical investment pollcy, as agreed by trustees, is followed at all times. The trustees subscribe to the same ethical policy as that adopted by the Representstive Body of the Church in Wa185. RBC Brewin Dolphin are the DBF'S Investment Manager and provide quarterly reports for trustees. Reserves policy The trustees review the charity's reseNes pollcy annually. The current policy is to maintain the equivalent of 6 months of the charity's running costs {£1.5m) in freely available funds. The charity's free reserves, which excludes Fixed Assets, Restricted Funds, Revaluation Reserve and Designated Funds equated to £3,883,989 (2022.. £3,558,460). Reserves are needed to provide adequate cash flow between regular payments to the RB for clergy stipend, and Ministry Share payments received on a quarterly basis from the ministry areas. Risk Management The major risks on the rlsk register are reviewed at each quarterly trustee meeling, and the whole register is reviewed annually. The highest risks have remained consistent and are - Dedine in income through reduced Ministry Share as a result of declining asa numbers. Ministry Areas being unable to cover share because of reduced income. 10-
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Plans for the Future Foard strategy Following confimiation from Ihe Representative Body of the additional funding for the Diocese of Monmouih from the Growth Fund. during 2023. the DBF has been able make move forward with its strategic plans to further support mlsslon and mlnlstry in all our ministy areas. During 2023. discussion and dialogue were ongoing to detemiine where additional investment would have the greatast benefits. As a result of these discussons. additional rw6ources to directly support admin and finance functions in our ministy areas will commence in 2024. This demonstrates a long-temi commitment by the DBF which will grow and develop In future years. A priority for 2023 was to ensure that all ministry areas were looking at how the five branches of the dlocesan vision could be lived out in their churches and communities. Muth of this has happened In workshop sessions wlthin the ministry area which will continue to be supported Into 2024 and beyond. In addition, Discipleship courses will continue to be promoted together with associated training for small group lead8rs. The new three- 8888ion Stewardship workshop was launch8d in October 2023 and viill stsrt to be dellvered in 2024. and followlng conslderable preparation yrk for positive Environmental change in 2023, it is hoped that the diocese will receive the Bronze A Rocha award in 2024. The DBF is looking forward towards the opportunities of securing additional fijnding to plant new o)ngregations throughout the dI0se. The first of these wlll be from the Cinw Evangelism Fund with £3m of grant ndIng secured in December 2023. These positions will be funded for 5 years and repsent an exciting and Innovatlve investment into the diocese. Following discussions with ministry areas, further appllcatlons will be submitted for new resources that wlll focus on growlh and evangelism. Looking into 2024 and beyond, the plans currently undeThvay to support the full range of ministy we anticipated to enrlchen and broaden our current model of ministy. The promotion and training of commissioned lay ministy has already begun and is being celebrated each year in a special event. There is ongoing work with those 8xploring vocations to commissioned. Itcensed or ordained ministy and Ihls remalns a key priority for the future. Further to this, from 2024 onwards, ministry areas will be asked to consider how their ministry teams can test be developed to ensure that there is a valued ministry of lay and ordained people, who are making a really positive difference in our communities. and contributing to the gro)Mh of our churches. 11
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure. governance and rnanagement The charity is a company limited by guarantee governed by its Memorandum and Articles of Association. It IG registered as a charity wth the Charity Commission for England and Wdles. Membership Membership of the Diocesan Board of Finance (DBF) is govemed by the Constitution of the Diocesan Conference of the Diocese of Monmouth adopted 13th October 2001, which stipulates that.. each deanery shall elect two lay members from amongst those elected to the Diocesan Conference: • not more than six lay persons, who need not be members of the Di0san Conference, may be coopted by the Board, and not more than four persons {either cleric or lay so long as the number of clerics on the Board shall not thereby exceed that of the lay persons) may be nominated by the Bishop. The lay persons so nominated need not be members of the Diocesan Conference., the Bishop may nominate one extra person during a three-year period. Membership of the Board is for a period of three years commencing at the Annual General Meeting fdlowing appointm8nt and members, if appointed. shall be eligible for re-appolntmenL Electing and appointr'ng trustees Monmouth Dlocesan Board of Finance operates through a company limited by guarantee govemed by Memorandum and Articles of A8sociation dated 2nd January 1998, and registered as a charity with the Charity Commission for England & Wales. At its Annual General meeting (AGM) the DBF appoints an Executive committee of ex-officio and elected members to be the Directors of the Company and Trustee board of the charity. As such they are bound by both charity and company law. In addition to the ex officio trustees, the Annual General Meeting on 22nd June 2006 resolved, 7hat the rules and byelaws be amended to provide thar rhe number of elected members on the Executwe Committee be incr8asgd from nine to twelve forthwith" The Chairman and Vice Chaimian are elected for a period of office of one year. Trustees are elected for a period of three years. Vvhen considering both the election and appointment of new trustees, the charity takes into accourrt the skills required of trustees in: managing a Christian charity, and administering the assets and financial management of the charity Trustee Induction and training New trustees are briefed on their legal obligations under tharity and company law, the background history of the charity, the decision-making processes, the business plan and the quarterfy monitoring of financial progress and the charity's latest annual financial performan. Infomiation from the Charity Commission is also available for both new and existing Irustees. Management and Organisation The Board of Trustees, which met four times in 2023. in addition to the AGM on Ihe 14th September 2023, administers the charity. The Irustees meet when the previous quarter's financial management inft)rmation is available. A Secretary and Executive Officer Is employed by the trustees to manage the day-to-day operations of the tharity. The Secretary has delegaled authorty, approved by the trustees, for operational matters, stafl management, finance and the overall operation of the charity within the approved budget. 12-
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Representative Bc<ly of the Church in Wales (RB) deleg8tes responsibility for overs88ing the care of parsonages within the diocese to the Monmouth Diocesan Parsonage Board. There is considerable common membership between the Diocesan Board of Finance {DBF) and the Parsonage Board, and both bodies a administered from the Di08an Office. Key Management Personnel The key management personnel of the charity a the Board of Trustees. the Diocesan Secretary arKI the Diocesan Accountant. Trustees are not remunerated. Staff salaries are paid in line with the Representstive Body of the Church in Wales guidance and incrernental increases are set in line with dergy stipends. Link5 With the Repre5errtative Body of the Church in Wales The charity ha5 a c105e liaison with the Representative Body of the Church in Vlales (RB). Financial assistanc8 is provided by the RB in the fomi of grant funding to the Diocesan Board of Finance. payable quarterly. The Chairman, Vice Chair and the Archdeacon of Newport are members of the RB, the Trustee body responsilje for the administration of the assets of the Church in Wdles. The RB also manages the stipendlary clergy payroll system, although clergy stipends are mainly funded from the Ministry Share collected from the Ministy Areas. 13-
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 REFERENCE AND ADMINISTRATIVE DEfAILS Charlty number 1067653 Company number 003489945 Registered Offlce Diocesan Office 64 Caerau Road Newport NP20 4HJ ststutory Audltors A2ets Audit Services Ty Derw Llme Tree Court Cardiff CF23 8AB Bankers NatW8St Bank Hlgh Street Newport NP20 1 GG solicitors Jacklyn Dawson Equity Chambers John Frost Square Newport NP20 1PW Investment Managers RBC Brewin Dolphin Third Floor Two Central Square Cardiff CFIO 1FS DIRECTORS AND TRUSTEES The directors of the company (the charity) are also its trustees for the purposes of charity law and throughout thls report are collectively referred to as the trustees. The trustees during 2023 were as follows: Ex-offlclo Peter E Lea (Chairman) Paulette Brown (Vice Chalrman) The Bishop of Monmouth (ex officio) The Dean of Newport {ex officio) The Archdeacon of NewFort (ex officio) The Archdeacon of Monmouth (ex officio) The Archdeacon of the Gwent Valleys (ex officio) Alan Davld Jones (Chalrman of the Parsonage Board) 14-
MONMOUTH DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT> (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Elected The Revd Jeremy D Harris Chrfstopher Wray Sarah Mulcahy (untll 14 September 2023) The Revd Kevin John Hasler {untll 14 September 2023) The Revd Mark Owen (until 14 September 2023) Paul Glover {from 11 May 2023) Louise Minford (from 11 May 2023) lan Loynd- (from 14 September 2023) Reverend James Henley (from 14 September 2023) Reverend Ross Maldment (from 14 Seplember 2023) Nicola Glbbons (from 08 December 2023) Andrea Thomas (from 08 December 2023) Cowted R D (Sandy) Blalr C.B.E (unlll 14 September 2023) The Monmouth Diocesan Parsonage Board Alan David Jones (Chainnan of the Parsonage Board) The Bishop of Monrnuth (ex officio) The Archdeacon of Newporl (ex officio) The Archdeacon of Monmouth (ex officio) The Archdeacon of the Gwent Valleys (ex officio) Peler E Lea (Chairman of the Diocesan Board of Fin8n¢e - ex offido) Rod Davies Ashley Rogers Sam Helkvist ExgcuUv8 oftlr Isabel Thompson Company Secretary Bethan Davles Funds held as custodlan trust•e Custodian respons5bllitles Trusteès act as custodian trustaès for rtain parish assets (both land and investments) held on behalf of those paTiShes. 14llhere funds are hekl or managed for parishes, these are either held in a separate dedicated bank account or can be easily separalely identified in the books of the DBF. Audltor Inaccordance wllh the companl$ artidas, a resolution proposlng that Azets Audii Services be reappolnted as auditor of the c(impany will be put at a General Meeting. The tr108. rewtW8S-8 woved byihe Board of Trust888. Peter Lèa Trustee -15-
MONMOUTH DIOCESAN BOARD OF FINANCE STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. who are also th8 directors of Monmouth Diocesan Board of Fin8n¢e for the purpose of company law, are responsible for preparing the Trustees, Report and thé financial statements in accordance with appli¢able law and United Kingdom Accounting Standards (Unlted lfjngdom Generally Accepted Accounting Pradice). Company Law requires the trust88S to prepare financial statements for each financial year which give a true and falr view of the stste of affairs of the charity and of the in¢omng resources and application of re50urce5, including the income and expenditure, of the charltable company for that year. In preparing these financial stat8m8nts. the trustees are required to.. - select suitable accounting polldes and then apply them consistentty,. - observe the methods and principles in the Charities SORP; make judgements and estlmates that are reasonable and prudenl., and Ppare th8 financial statements on the going ¢on¢em basis unless it is inappropriate to presume that the charity wlll continue in operation. The trustees are responsible for keeplng adequate a¢¢ounting records that disclose with re8sonable accuracy at any time th8 financial position of the charity and enable them to ensure that the financlal 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 irregularitl8S. 16-
MONMOUTH DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MONMOUTH DIOCESAN BOARD OF FINANCE Opinlon We have audited the financial statements of Monmouth Diocesan Board of Finance (the 'charity') for the year ended 31 December 2023 1* compTi5e the ststement of financial activities, the balance sheet. the statemerrt of cash flows and the notes to the financial slatements, induding a summary of significant accounting poliaes. The financial reporting framework that has been applied in their preparation is applicable law and Untted Kingdom Accounting Stsndards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ir8land (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fair vi8w of the state of the charitable company's affairs as at 31 December 2023 and of its incoming reSoUrS and application of resources. for the year then ended., have been properly prepared in accordance wilh United Kin9dom Generally ACpted Accounting Practi. and have been prepared In accordance with the requirements of the Companies Act 2006. Basls for oplnlon i+Ve ci)nducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UKI) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit the finand81 statements section of our report. We are Independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, induding the FRC'S Ethical StarKlard, and we have fulfilled our other ethical responsibilities in accordance wfth these requirements. Vve believe that the audit evidence we have obtained is SLfftlclent and appropriate to provide a basis for our opinion. Concluslons r•lating to golng concern In audftlng the financial statements, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial ststements is appropriate. Based on the work we have perfomied, we have not Identlfled any material UnrtaInlieS relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concem for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concem are described in the relevant sections of this report. Other Informatlon The other information comprises the information included in the annual reF)Ort other than the finalla1 statements and our auditorfs report thereon. The trustees are responsible for the other information contsined within the annual rert. Our opinion on the financial statements does not cover the other infonnation and we do not expre55 any form of assuran condusion thereon. Our responsibility is to read the other infomiation and, in doing so. consider whether the other information is materially inconsistent wf(h the financial ststements or our knedge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied. conclude that there is a material misstatement of this other infomiation. we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exception Vve have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you ff, In our oplnlon: the informatlon given in the financial statements is inconsistent In any material respect V&ith the trustees, report; or sufficient accounting records have not been kept; or the financlal statements are not in agreement with the 8ccounting records., or we have not received all the infomiation and explanatnS we require for our audit. 17-
MONMOUTH DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MONMOUTH DIOCESAN BOARD OF FINANCE Responslbllltles of trustees As explained more fully in the statement of trustees, responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are resF)onsible 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 15 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 charitys abilty to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going COnM basis of accounting unless the trustees either intend to liquidate the charitable company or to ase operation5, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audit of the financial statements Ve have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereurKJer. Our objectives are to obtsin reasonable assurance about whether the financial statements as 8 whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance wbith 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 infiuence the economic decisions of users tak8n on the basis of these finanaal statements. A further descriplion of our responsibilities is available on the Financial R8POrting Council's website at: https'.11 wNw.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Extent to whlGh tho audit was consldered capable of detectlng irregularitios, including fraud Irregularities, including fraud, are instances of non-compliance wlth laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. We obtain 8nd update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of m8terial misstatement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulatlons, Includlng fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included.. Enquiry of management and those charged with govemance around actual and potential litigation and claims a5 well as actual, suspected and alleged fraud- Reviewing minutes of meetings of those charged with govemance. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial ststements or the operations of the entity through enquiry and inspecti¢)n' Reviewing financial statement disclosures and testing to supporting documentation to assess compliance wilh applicable laws and regulations. Performing audit work over the risk of management bias and overrtde of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting eslimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we will not d8t8Ct all irregularities, induding those 18ading to a material misstatement in the financial statements or n0COmplIance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions refiected in the financial statements, as we will be les5 likely to become aware of instances of noTrcompliance. The risk of not detecting a material mlsstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misr8presentations, or the override of intemal control. 18-
MONMOUTH DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MONMOUTH DIOCESAN BOARD OF FINANCE Use of our report This report is made solely to the charlty's trustees, as a body. in accordan with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit has been undertaken so thai we might state to the charitys trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pemiitt8d by law. we do not accept or assume responsibilty to anyone other than the charty and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Acoy hthF 12 August 2024 Azots Audit Servlces Chartered Accountants Statutory Audltor Ty Der4Y. Lime Tree Court Cardiff Gate Business Park Cardiff United Kingdom CF23 8AB zets Audit Seriices is eligible for appointment as auditor of the tharity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 19-
MONMOUTH DIOCESAN BOARD OF FINANCE STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrfcted Restrlcted funds funds 2023 2023 Total Unrestrfcted Restrlctsd funds funds 2022 2022 Totsl 2023 2022 Notes Inc me and •ndowments from: Donations and legacies Other trading activities Investments Other income 3,213,979 626.528 3.840,507 2.997,456 114,744 3.112.200 146,984 23.374 6.379 146,984 169,177 8,912 105,832 17.954 801 105,832 131,023 1,484 145.803 533 113.069 683 Total incomo 3.360.315 803,265 4,163.580 3.111.208 239,331 3,350,539 Ex enditure on: Raising funds 17,604 832 18.436 18.067 860 18,927 Charitable activities 2,511,9TI 599,738 3,111,715 2,157,392 692.072 2,849,464 Total eXndItUre 2,529.581 600.570 3.130,151 2,175,459 692.932 2,868,391 Net gainsl(losses) on investments 11 55,236 334 55,570 (355,843) (14,585) <370,428) Net Incoming resources before transfers 885,970 203,029 1,088,999 579,906 (468,186) 111.720 Gross transfers between funds (36.070) 36,070 {465,260} 465,260 Net movement In fund8 849,900 239.099 1.088.999 114,646 {2,926) 111,720 Fund balances at 1 January 2023 4.810,220 558.272 5.368,492 4,695,574 561,198 5,256,772 Fund balances at 31 Decomber 2023 5,660,120 797,371 6,457.491 4.810,220 558,272 5,368,492 The statement of financial aclivilies includes all galns and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure accourrt under the Companies Act 2008. -20-
MONMOUTH DIOCESAN BOARD OF FINANCE BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Flxed assets Tangibje assets Investments 15 16 406.509 3,232.540 403.909 3.195,076 3,639,049 3,598,98S Current a$$ots Debtors falling due after one year Debtors falling due within one year Cash at bank and in hand 17 17 217.300 447.155 3,092,489 217,300 393,402 2,116,160 3,756.944 2.728.862 Credltor5: amounts falling due wlthln one year 18 1721.202) (740.055) Net current assets 3.035.742 1,986,807 Total assots1088 current Ilabllltles 6,674,791 5,585,792 CredFtors: amunts falllng duè after more than one year 19 (217,300) (217,300) Net assets 6.457,491 5.368,492 Income funds Restricted funds Unrestricted funds Designated funds General unrestricted funds Revaluation reserve 21 797,371 558,272 22 1,246.518 4,290.498 123.104 724.744 3,962,372 123,104 5.660.120 4,810,220 8,457.491 5,368,492 21
MONMOUTH DIOCESAN BOARD OF FINANCE BALANCE SHEET {CONTINUED) AS AT31 DECEMBER 2023 The company is entitled to the exemplion from the audit requirement contained in section 477 of the Companies Ad 20[, for the year ended 31 December 2023, allhough an audit has been carried OLrt under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities ft)r comptying with the requirements of the Companies Act 2006 with re8P8Ct to accounting records and the preparation offinanclal ststements. The members have not required the company to obtain an audit of its fjnan¢lal statemenls under the requirements of Ihe Companies Act 2006, for the year In question in accordan with section 478. These financial stat8m8nts hav8 been prepared in accordance with the provislons appllcable to companies subject to the small companies regime. The fina181 ststemen ja*le apwovtsd bylhe TAtee8 on ............... PLea Company reglstratlon number 03489945 -22-
MONMOUTH DIOCESAN BOARD OF FINANCE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operatlng actlvttles Cash generated from operations 27 794,543 229,629 Investing actlvltles Purchase of tangible fixed assets Purchase of investments PrOedS from disposal of investments Investment income received (5,497) (889,947) 902,024 169,177 (2.411) (632,216) 562,362 131,023 Net cash genoratod from Investlng activities 175,757 58,758 Financing activities Repayment of borrowlngs (42.950) Nèt cash used in financing activllles (42,950) Net increasa in cash and cash •qulvalents 970,300 245,437 Cash and cash equivalents at beginning of year 2,144.715 1.899,278 Cash and cash equlvalents at end of year 3.115.015 2.144,715 Relating to: Cash al bank and in hand Short tenn deposits included in current asset investments 3,092,489 2.116,160 22,526 28,555 -23-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Charity informatlon Monmouth Diocesan Board of Finance is a charitable company limited by guarantee incorporated in England and Wales. The registered office is 64 Caerau Road, NeOrt NP20 4HJ. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's goveming document. the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)" The charity is a Public Benefft Entity as defined by FRS 102. The financial statements are prepared in sterling, lch is the functional currency of the charity- Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost conv8ntion, modified to indude the revaluation of freehold properties and rtain financial instruments at fair value. The prlnclpal accountlng pollcles adopted are set out below. 1.2 Going concern At the tlme of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operation81 existen for the foreseeable future. Thus the treeS continue to adopt the going concem basls of accounting in preparing the financial statements. 1.3 Charltsble funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated fijnds comprise funds which have been set aside at the discretion of the trustees for specffic purposes. The purposes and uses of the designated funds are set out in the note5 to the financial statements. Restricted funds are subject to specific conditions by donors as to how Ihey may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. other donations are recognised once the charrty has been notified of the donation, unless performan conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at Ihe time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending dlstributlon, the amount Is known, and receipt is expected. If the amount is not known, the legacy is treated 8S contingent asset. Rentsl Income is recognlsed when the charity is legally entitled to it after any perfomiance conditions have been met, the amounts can be measured reliably. and it is probable that income will be received. -24-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles {Contlnued) 1.5 Expendlture Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to Ihat expenditure. it 15 probable that a transfer of 8conomic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classtfied under headings that aggregate all cost related to the category. Vthere costs cannol be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Allocation and apportionment of costs Administration and management costs are allocated to the function of the charity to which they relate. The method of allocation has been on a percentage basis of the overall cost of that particular nCtiOn. 1.6 Tanglble flxed a8sets Tangible fixed assets are initially measur8d at cost and subsequently measured at cost or valuation, net of depreciation. where considered appropriate and any impaimient losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the followlng bases: Freehold land and buildings FiXtuS and fittings Measured at fair value 330A Straight line The gain or loss arising on the dlspos81 of an asset is detemiined as the difference between th8 sale proceeds and the Carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Flxed asset Investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and ara subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel{expenditure) for the year. Transactton costs are expensed as incurred. 1.8 Impalrment of flxed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to detennine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists. the recoverable amount of the asset is estimated in order to detemiine tha extent of the impaimient loss {rf any). 1.9 'Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call ThIh banks, other short-tenn liquid investments with original maturities of three months or les5, and bank overdrafts. Bank overdrafts are shown within borrowings in currerrt liabilities. 1.10 Financial instruments The charity has eleded to apply the provisions of Section 11 'Basic Financlal Inslruments, and Section 12 'Other Flnanclal Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charlty's balance sheet bthen the charity becomes paty to the contractual provlslons of the instrument. Financial assets and liabilities are offset, the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policios (Contlnued) Baslc financial 8ssets Basic financial assets, which Include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effectlve interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivab18 Wlthin one year are not amortised. Bask flnancial liabilitios Basic financial liabilities, including creditors and bank loans are Inltlally recognised at transaction price unless the arrangement constitules a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at 8 market rate of inte$t. Flnanclal Ilabllities classified as payable within one year a not amortlsed. Debt instruments are subsequently Carried 8t amortlsed cost, using the effective interest rate method. Trade creditors are obligations to Pay for goods or servitss that have been acquired in the ordin*y course of operations from suppliers. Amounts payable are dassified as current liabilitles if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade credltors are recognised initially at transaction price and subsequentty measured at amortised cost using the effective interest method. Derecognition of financial liabilitios Financial liabilities are derecognlsed when the charity's contractual obligation8 expire or ar8 discharged or cancelled. 1.11 Employee beneflts The costs of short-term employ88 benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised In the period in which the employee's seNices are reived. Tennination benefits are recognlsed immediately as an expense when the charity is demonstrably committed to temiinate the employment of an employe8 or to provide temiination benefits. 1.12 Lease$ Rentals payable under operating leases, induding any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. 1.13 Taxallon As a registered charity Monmouth Dlocesan Board of Finance is entitled to the exemption from tsxation in respect of income and capital gains received with sections 47&489 of the Corporalion Tax Act 2010 and s8ction 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to rts charitable objects purposes only -26-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Crltlcal accounting estimatos and judgements In the appllcatlon of the charliy's accounting policles, the trustees are required to make judgements, estimates and assumptions al)out the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other f8Ctors that are considered to be relevant. Actual results may differ from these estimates. The éstimatas and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where revision affects cnly that period, or in the period of the revision and future periods where the revlslon affects both current and future periods. 27-
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MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Other tradlng activttles Restricted R88trlcted funds funds 2023 2022 Room Letting and mIslIaneouS Income Rental of Parsonages 2,886 144.098 3.853 101.979 Other trading activities 146.984 105,832 -29-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charitable actlvltles 2023 2022 Support for ministry Support for ministry areas Support for other church property Grants and other financial support Communications and publications 2,209,291 2,154.592 294,959 116.731 34,257 58,781 188,022 173,495 33,073 33,379 2,759,602 2.538,978 Share of support costs {see note 9) Share of govemance costs (see note 9) 269,438 82,677 240,973 71,513 3,111,715 2,849.484 Analysls by fund Unrestrlcted funds Restricted funds 2,511,977 2.157.392 599,738 692,072 3,111,715 2.849.464
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Support Governance osts osts 2023 Support Governance costs 2022 Staff costs Depreciation Heat, Light and Water Telephe, fax and intemet Prlntlng, Postsge and Stationery Furniture and computer expenses Equlpment leaslng charges Repalrs and Renewals Caretakerlcleaning MislIaneOUS 226,678 2,897 9,027 226,678 2,897 9,027 211,146 1,464 6,002 211,146 6,002 3.131 3,131 2.984 2,478 2,478 2.908 2,908 7,608 7,608 6.484 6,484 3,936 7,410 3.512 2.759 3,936 7,410 3,512 2,759 4,423 1,982 1,706 1,874 4.423 1,982 1,706 1,874 Audit fees Legal and professional Diocesan Insurance Diocesan Conference Costs Goveming Body Expenses Diocesan Registrar 14,400 4,325 6,785 14,400 4,325 6,785 9,174 1,991 6,074 9,174 1,991 6,074 4.603 4,603 883 883 23,828 28.736 23,828 28,736 25.931 27.460 25,931 27,460 269.436 82,677 352,113 240,973 71,513 312,486 Analysed betreen Charitsble 8Ctivities 269,436 82,677 352,113 240.973 71.513 312.486 Govemance costs includes payments to the auditors of £14,400 (2022.. £9,174) for audit fees. 10 Net movement In funds 2023 2022 Net movement in funds is ststed after chargingl(crediting) Fees payable to the company's auditor for the audit of the company's financial statements Depreciation of owned tangible fixed assets 14.400 2,897 9.174 1,464 -33-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11 Net galnslllosses) on Invastments Unrestrlcted Restrlct funds funds Total Unrestrlcted Restrlcted funds funds Total 2023 2023 2023 2022 2022 2022 Revaluation of investments Gainl(loss) on sale of investrnents 69,967 1,808 71,775 (355.843) (14.585) {370.428) (14.731) (1.474) (16,205) 55,236 334 55,570 (355,843) 114,585) (370.428) 12 Trustees Non8 of the trustees (or any persons connected with them) recelved any remuneration, benefits or expenses from the charity during the year.
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 13 Employees Number of employees The average monthly number of employees during the year was.. 2023 Number 2022 Number 10 Employment costs 2023 2022 lages and salarles Social security costs other pension costs Salary of Di0san Registrar 275,157 23,968 32,061 26,470 227.572 20.241 26.900 25.210 Total Costs 357,656 299,923 Staff costs indude £nil of redundancy payments (2022: £nil). Ther8 were no amounts outstanding in the current or prior year. Key Managemerrt Personnel costs Including Salary, Penslon and Employers Natlonal Insurance amounted to £129,428 (2022: £124,317). The number of employees whose annual remuneration was £60.000 or more were: 2023 Number 2022 Number £60,001 to £70.000 14 Taxatlon The charty is exempt from tsx on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. -35-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15 Tangible fixed assets Froohold land Flxtures and and bulldlng8 flttlngs Total Cost or valuation At 1 January 2023 Addttions 400,000 6,073 5,497 406.073 5.497 At 31 December 2023 400,000 11,570 411.570 Depreciatlon and impairment At 1 January 2023 Depreciation charged in the year 2,164 2,897 2,164 2,897 At 31 December 2023 5.061 5,081 Carrylng amount At 31 December 2023 400,000 6,509 406,509 At 31 December 2022 400,000 3,909 403,909 Land and buildings with a carrying amount of £310.000 were revalued at 31 July 2019 by Graham & Co, independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length temis for similar properties. The valuation does not separately value the land from the buildings. At 31 December 2023, had the revalued assets been carried at historic cost less accumulated d8pr8ciation and accumulated impairment losses, their carrying amount would have been approximately £276,896 (2022: £276,896). The revaluation surplus of£123,104 is r8cognised on the Balance Sheet within Income Funds. 16 Flxed asset Investments Llsted Investments Cash In portfollo Total Cost or valuation At 1 January 2023 Additions Valuation changes Movement Disposals 3,166,522 889,947 71,775 28,554 (891.615) 3,195,076 (1,668) 71,775 (16,439) (16,204) (16,439) 902,026 (918,230) At 31 December 2023 3,210,014 22,526 3.232,540 Carrylng amount At 31 December 2023 3,210,014 22,526 3,232,540 At 31 December 2022 3,166,522 28,554 3,195,076
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Fixed asset investments (Continued) 17 Debtor8 2023 2022 Amounts falling due within one year: Trade debtors other debtors 334,463 112,692 361,347 32,055 447,155 393,402 2023 2022 Amounts falllng due after more than one year: Due from Parishes re Provincial Housing Loans 217,300 217,300 Total debtors 664,455 610,702 Loans from The Representative Body Of The Church In Walès Th6 loans to the retired dergy, and if deceased their spouses, are received from the Representative Body of the Church in Wales and capital repayments are made to the Representative Body of the Church in Wales when they are reiVed from the retired dergy. or their spouses. The Dlocesan Board of Finance pays the same rates of interest to the Representative Body as is received from the loans to retired clergy or their spouses, shown above. Security is held over the properties. 18 Credltors: amounts falllng due wlthln one year 2023 2022 Notes Deferred InMe Trade cr8df(ors other Greditors Accruals and deferred income 20 166,084 25,645 31,383 498,090 10,892 63,952 665,211 721,202 740,055 -37-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 19 Credltors: amounts falllng due after more than one year 2023 2022 Representative body loans 217,300 217.300 Loans from The Representatlve Body Of The Church In Wales The loans to the retired clergy, and if deaSed their spouses, are received from the Representatlve Body of the Church In Wales and capital repayments are made to the Representative Body of the Church in Wales when they are received from the r8tir8d clergy, or their spouses. The Diocesan Board of Finance pays the same rates of interest to the Representatlve Body as is received from the loans to retired clergy or their spouses, shown above. Security is held over the properties. Loans a repaid to the Diocese when the related propety has been sold. 20 Deferred Income 2023 2022 Other deferred income 166.084 Deferred income is included in the financial statements as follows: 2023 2022 Deferred income is included within: Current liabilities 166,084 Movements in the year: Deferred income at 1 January 2023 Resources deferred in the year 168,084 Deferred income at 31 December 2023 166,084 Deferred income represents amounts received in advance from the Repr8sentative Body in respect of Structural Resilience Funding and Partnership Funding.
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MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 24 Operating lease commltments At the reporting end date the charlty had outstanding commitments for fijture minimum lease payments under non<ancellable operating leases. which fall due as follows.. 2023 2022 Wrthin one year Ben two and five years In over five years 4,605 14,012 21 3,602 5.772 18,638 9.374 25 Related party transactions The were no related paty transactions during the current or previous year. 26 Share capltal As the company is lirnited by guarantee, there 15 no share capitsl. The liability of each member In the event of winding up is limited to £1 . 27 Cash generated from op•ratlons 2023 2022 Surplus for the year 1,088,999 111,720 Adjustments for. Investment income recognised in stst8m8nt of financial activities Loss on disposal of investments Gains and losses on investments Depreciation and impairment of tangible fixed assets (169,177) 16,205 (71,775) 2,897 (131,023) 370.428 1.464 Movements in working capital: (Increas8}Idecrease in debtors (Decrease) in creditors Increase in deferred income (53,753) (184,937) 166,084 143,071 (266.031) Cash generated from operatlons 794,543 229.629 -43-
MONMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 28 Analysls of changes In nèt funds At l January 2023 Cash flow5 At 31 December 2023 Cash at b8nk and in hand 2,116,160 976,329 3,092,489 Loans falling due after more than one year (217,3001 (217,300) 1,898,860 976,329 2,875,189