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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 03655641 (England and Wales) REGISTERED CHARITY NUMBER: 1075931

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 24
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BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable 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).

OBJECTIVES AND ACTIVITIES

Objectives

The charity's objectives are to promote and assist the work and purposes of the Church in Wales in the Diocese of Bangor. The Diocese of Bangor is committed to three visionary principles: worshipping God; growing the Church; and loving the world. These principles describe the diocese's deepest hopes and ambitions, expressing the permanent essence of our common life. Assessing the diocese today through the lens of these long-term principles, three urgent and clear priorities have also been identified: nurturing disciples; growing new ministries; and welcoming children, young people and families. These priorities describe vital areas of contemporary focus. In order to make manifest these principles and to meet these priorities, the diocese has committed to planning in three key areas: mission; property; and finance. Planning in these three areas by each of the diocese's Ministry Areas will enable each Ministry Area to demonstrate in practical ways the meaning of the principles and priorities within their common life. Three platforms (Ministry Areas; archdeaconries; and re-shaped diocesan structures) now enable the diocese to plan meaningful, and to bring its principles and priorities truly to life.

Significant activities

The charity sets the quinquennial diocesan budget, receives the annual grant from the Representative Body of the Church in Wales, and oversees the collection of the Bishop's Ministry Fund (contributions from churches towards diocesan expenditure on ministry). The charity employs the staff team that form Tîm Deiniol, based at T? Deiniol in Bangor and elsewhere in the diocese.

Public benefit

The trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding the activities undertaken during the year. The trustees are satisfied that the information provided in the report and accounts meets the public benefit reporting requirements.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The main thrust of the charity's activities continues to focus on the provision of ordained leadership for the churches of the diocese, and appropriate support for these leaders. The charity has also continued to seek to align its resources to the diocesan principles and priorities, including by continuing to invest in resources to nurture discipleship, discern vocations and support family ministry. A clearer articulation of principles, priorities, plans and platforms is seen as providing greater coherence to this mainstay activity, as well as to bespoke new activities that advance particular aspects of the vision.

Investment performance

The value of the charity's investments rose during the year, reflecting the upturn in the Stock Market.

Internal and external factors

The overall number of people attending churches in the diocese has remained static, although within the context of a long-term downward trend. However, an upward trend in the number of families involved in the life of local churches, as well as in the number of those attending acts of worship on days other than Sunday, has continued.

FINANCIAL REVIEW

Financial position

During the year both the Restricted and Unrestricted Funds have increased. The restricted element has increased from £1,369,218 in December 2020 to £1,534,074 as at December 2021. The Unrestricted Reserves have increased from £4,819,731 to £5,671,558 in the same period.

Page 1

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Principal funding sources

The principal funding source is income from the Bishop's Ministry Fund. The Bishop's Ministry Fund system replaced the Parish Share system in 2015, and contributions from Ministry Areas towards the Bishop's Ministry Fund in each subsequent year, including 2021, have been consistently strong. The allocation of emergency funding from the Representative Body of the Church in Wales and from the charity's own funds, as well as generous full contributions from some Ministry Areas, enabled reduced contributions from other Ministry Areas during the year, reflecting reduced Ministry Area income because of the pandemic. The trustees acknowledge with thanksgiving the generosity and stewardship that allow funds to be made available to meet the cost of ministry, and the faithfulness across the life of the Church in Wales that has enabled financial viability to be maintained during the pandemic. A secondary funding source is the annual grant from the Representative Body of the Church in Wales. The trustees look forward to clarity surrounding the value of the grant from the end of the current funding quinquennium in 2022.

Investment policy and objectives

The trustees seek a level of investment income that is able to support a range of important charitable activities at a time of change, recognising that achieving such a level of income may, in the case of some investments, pose some challenges to the secondary goal of maintaining capital value. The trustees work with their investment managers to assess the ethical dimensions of their investment portfolio, prioritising the use of shareholder rights to achieve the advancement of a progressive ethical agenda through the investment portfolio.

Reserves policy

The trustees' objective is to maintain an operational reserve of approximately 3 months' expenditure, alongside an expendable endowment geared to provide investment income that is able to support a range of important charitable activities.

FUTURE PLANS

The trustees will continue to focus their resources on activities that support the diocese's clearly articulated principles, priorities, plans and platforms, recognising that stability in terms of the overall framework is significant at a time of major change and challenge for Ministry Areas and congregations. However, the trustees will also engage in proactive activity to support new programmes that enhance the support offered for the diocese's principles and priorities. These twin aspects will form the framework of the charity's new quinquennial budget from 2022. Furthermore, the charity, on behalf of the diocese, has engaged with the Representative Body's Evangelism Fund initiative, and work on the resulting Llan project has now commenced.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment of new trustees

In addition to ex-officio trustees, new trustees are recruited to maintain a balance of skills and experience, as well as an appropriate representation of ordained and lay representatives.

Organisational structure

The Board of Trustees generally has between twelve and fourteen members. The trustees meet on average four times a year to review progress and to plan for the future. The trustees are also members of the Diocesan Conference Standing Committee, and reflect on the Standing Committees business at the beginning of each of their meetings.

Decision making

The decision-making role of the trustees in supported by preparatory work by Tîm Deiniol and the Bishop's Council, and by conferring within archidiaconal Synods and the Cadfan Group of Ministry Area Leaders and Associate Vicars. The alignment in membership between the trustees and the membership of the Diocesan Conference Standing Committee also ensures that decisions about the use of resources are fully informed by the Standing Committee's oversight of broad strategic considerations.

Page 2

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

New trustees are inducted through a series of meetings with the Tîm Deiniol, the Bishop's Council and the Auditors. Trustees are briefed on new charity law developments as they arise, and are given updates on the current issues facing the charity during their regular meetings.

Key management remuneration

Remuneration of the charity's key management personnel is located within the context of the remuneration structure of Tîm Deiniol more broadly, and with reference both to the remuneration arrangements for the clerical leadership of the diocese and the pay structure of the Representative Body of the Church in Wales.

Wider network

The charity supports the life and witness of the Diocese of Bangor, led by the Bishop of Bangor and governed by the Bishop in collaboration with the Diocesan Conference. The Diocese of Bangor is one of six dioceses of the Church in Wales. Given the charity's role in organising and providing funds for the Diocese of Bangor, it works closely with the Representative Body of the Church in Wales. The Representative Body holds assets in trust on behalf of the archbishop, bishops, clergy and laity of the Church in Wales - currently some 1,500 churches, 650 parsonage houses and £370 million of investments.

Related parties

Due to the nature of the charity's operations and the composition of the Board of Trustees it is inevitable that transactions will take place with organisations in which a member may have an interest. All transactions involving organisations in which a trustee may have an interest are conducted at arms length. The charity has a policy that all trustees must declare an interest if a related party transaction occurs.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

03655641 (England and Wales)

Registered Charity number

1075931

Registered office

Ty Deiniol Cathedral Close Bangor Gwynedd LL57 1RL

Page 3

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees

The Very Right Reverend A T G John The Right Reverend M K R Stallard The Venerable A C Jones The Very Reverend K L Jones (resigned 22.7.21) The Reverend P J Odam Mrs E W Owen The Canon Reverend E C Williams Mr G Howard The Reverend D A Parry The Reverend R S Wood Mrs S D Ward Dr H J Parry-Smith The Venerable A F Herrick

Company Secretary

The Canon Reverend S R Evans

Auditors

Williams Denton Cyf Chartered Certified Accountants Statutory Auditors Glaslyn Ffordd Y Parc Parc Menai Bangor Gwynedd LL57 4FE

Advisers

Bankers: Lloyds Bank, 268 High Street, Bangor, Gwynedd LL57 1RT

Investment Managers: CCLA, Senator House, 85 Queen Victoria Street, London EC4V 4ET

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Bangor Diocesan Board of Finance Bwrdd Cyllid Esgobaeth Bangor for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

Page 4

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Williams Denton Cyf, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 22 September 2022 and signed on its behalf by:

........................................................................ The Right Reverend M K R Stallard – Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

Opinion

We have audited the financial statements of Bangor Diocesan Board of Finance Bwrdd Cyllid Esgobaeth Bangor (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant 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. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or 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 the audit:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud, and designed audit procedures in response to this risk. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, Companies Act 2006 and Charities Act 2011.

Our tests included:

There are inherent limitations in the audit procedures described above. The more removed that financial transactions are from the laws and regulations, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of trustees and management, and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those resulting from errors, as fraud may involve deliberate concealment or collusion.

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 Report of the Independent Auditors.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Owain Ap Elfed FCCA (Senior Statutory Auditor) for and on behalf of Williams Denton Cyf Chartered Certified Accountants Statutory Auditors Glaslyn Ffordd Y Parc Parc Menai Bangor Gwynedd LL57 4FE 7 December 2022 Date: .............................................

Page 9

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Support for Ministry
Church Property
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Support for Ministry
Support for Parishes
Church Property
Grants & Other Financial Support
Communication
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
2,554,902
73,945
-
63,289		 Restricted
funds
£
237,786
-
357,276
20,704		 31.12.21
Total
funds
£
2,792,688
73,945
357,276
83,993		 31.12.20
Total
funds
£
2,973,997
74,214
350,841
86,637
2,692,136
1,845,865
437,362
149,520
37,381
37,381		 615,766
213,372
5,424
386,294
258
258		 3,307,902
2,059,237
442,786
535,814
37,639
37,639		 3,485,689
2,181,355
522,495
273,911
36,943
29,174
2,507,509
667,200		 605,606
154,696		 3,113,115
821,896		 3,043,878
265,005
851,827
4,819,731		 164,856
1,369,218		 1,016,683
6,188,949		 706,816
5,482,133
5,671,558 1,534,074 7,205,632 6,188,949

The notes form part of these financial statements

Page 10

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

BALANCE SHEET 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
281,193
4,751,277
5,032,470
515,580
459,796
975,376
(336,288)
639,088
5,671,558
5,671,558
Restricted
funds
£
1,582
1,166,150
1,167,732
104,210
301,172
405,382
(39,040)
366,342
1,534,074
1,534,074		 31.12.21
Total
funds
£
282,775
5,917,427
6,200,202
619,790
760,968
1,380,758
(375,328)
1,005,430
7,205,632
7,205,632
5,671,558
1,534,074
7,205,632		 31.12.20
Total
funds
£
292,241
5,095,529
5,387,770
412,904
941,312
1,354,216
(553,037)
801,179
6,188,949
6,188,949
4,819,731
1,369,218
6,188,949

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 22 September 2022 and were signed on its behalf by:

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.............................................
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The Venerable A C Jones - Trustee

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The Right Reverend M K R Stallard Trustee

The notes form part of these financial statements

Page 11

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 31.12.21
£
(260,041)
(260,041)
(2,997)
82,694
79,697
(180,344)
941,312
760,968		 31.12.20
£
301,819
301,819
(9,580)
86,150
76,570
378,389
562,923
941,312

The notes form part of these financial statements

Page 12

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.12.21
£
Net income for the reporting period (as per the Statement of Financial
Activities)
1,016,683
Adjustments for:
Depreciation charges
12,463
Gain on investments
(821,896)
Interest received
(82,694)
Decrease in stocks
-
Increase in debtors
(206,886)
Decrease in creditors
(177,711)
Net cash (used in)/provided by operations
(260,041)		 31.12.20
£
706,816
11,741
(265,005)
(86,150)
3,000
(21,027)
(47,556)
301,819
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.21 Cash flow At 31.12.21
£ £ £
Net cash
Cash at bank 941,312 (180,344) 760,968
941,312 (180,344) 760,968
Total 941,312 (180,344) 760,968

The notes form part of these financial statements

Page 13

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic 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 classified under headings that aggregate all cost related to the category. Where costs cannot 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

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities or estimated usage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

No depreciation is provided on freehold property because the trustees consider that the life of the property and its residual value are such that depreciation is not material. Any impairment in the carrying value of fixed assets is charged against the profit and loss account.

Investments

All listed investments are stated at market value at the balance sheet date. The movement in valuation of investments is shown in the Statement of Financial Activities and comprises both realised and unrealised gains and losses.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

continued...

Page 14

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Related parties

Due to the nature of the charity's operations and composition of the board of trustees it is inevitable that transactions will take place with organisations in which a member may have an interest. All transactions involving organisations in which a trustee may have an interest are conducted at arm's length. The Charity has a policy that all trustees must declare an interest if a related party transaction occurs.

2. DONATIONS AND LEGACIES

Ministry area donations
RBCW grants
Other grants
Coronavirus grants
Evangelism grants
Sundry donation & other income		 31.12.21
£
1,341,585
271,725
90,793
819,427
210,793
58,365
2,792,688		 31.12.20
£
1,408,303
352,450
83,098
995,131
71,318
63,697
2,973,997

3. INVESTMENT INCOME

INVESTMENT INCOME
31.12.21 31.12.20
£ £
Bank interest - general 1,299 487
Investment income from listed investments - general fund 63,289 67,123
Investment income from listed investments - widows & orphans 19,405 19,027
83,993 86,637

continued...

Page 15

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
Administration contributions
Support for Ministry
Rents due to Parsonage fund
Church Property
Parsonages improvements
fund
Church Property
BDBF grant to parsonage
fund
Church Property		 31.12.21
£
73,945
119,364
27,582
210,330
431,221		 31.12.20
£
74,214
113,010
8,129
229,702
425,055

5. CHARITABLE ACTIVITIES COSTS

Support for Ministry
Support for Parishes
Church Property
Grants & Other Financial Support
Communication		 Direct
Costs
£
1,682,860
292,234
385,262
-
-
2,360,356		 Support
costs (see
note 6)
£
376,377
150,552
150,552
37,639
37,639
752,759		 Totals
£
2,059,237
442,786
535,814
37,639
37,639
3,113,115

6. SUPPORT COSTS

Governance
Management
costs
£
£
Support for Ministry
344,745
31,632
Support for Parishes
137,899
12,653
Church Property
137,900
12,652
Grants & Other Financial Support
34,476
3,163
Communication
34,476
3,163
689,496
63,263		 Totals
£
376,377
150,552
150,552
37,639
37,639
752,759
Activity Basis of allocation
Management As below
Governance costs As below
Support for Ministry 50%
Support for Parishes 20%
Church Property 20%
Grants & Other Financial Support 5%
Communication 5%

The basis of allocation is estimated usage as specified by Church in Wales Governing Body

continued...

Page 16

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.21 31.12.20
£ £
Auditors' remuneration 11,400 10,920
Auditors' remuneration for non audit work 11,607 3,320
Depreciation - owned assets 12,463 11,741

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Trustees' expenses

Trustees' expenses totalling £12,250 was paid for the year ended 31 December 2021 and £5,629 was paid for the year ended 31 December 2020. These expenses were made up of reimbursed travel, subsistence and accommodation costs for five trustees.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31.12.21
£
450,224
41,092
64,119
555,435		 31.12.20
£
437,223
38,882
60,813
536,918

The average monthly number of employees during the year was as follows:

31.12.21 31.12.20
Chief officer 3.8 4.8
Finance officer 2 2
Education 3 4
Llan 2.75 -
Other 3.25 4

14.8 14.8

No employees received emoluments in excess of £60,000.

The charity considers its key management personnel comprise four members of Tim Deiniol with management responsibility for colleagues. Total emoluments, including employer pension contributions, of the key management personnel were £207,035 (2020 - £262,787)

The average monthly number of employees during the period is calculated on the basis of full-time equivalents.

The charity operated a defined contribution pension scheme for its employees and the charity made pension contributions for 16 (2020 - 19) staff members.

continued...

Page 17

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Support for Ministry
Church Property
Investment income
Total
EXPENDITURE ON
Charitable activities
Support for Ministry
Support for Parishes
Church Property
Grants & Other Financial Support
Communication
Total
Net gains on investments
NET INCOME
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
2,846,412
74,214
-
67,123
2,987,749
2,110,720
487,696
115,699
28,925
28,925
2,771,965
194,028
409,812
55,360
465,172
4,354,561
4,819,733		 Restricted
funds
£
127,585
-
350,841
19,514
497,940
70,635
34,799
158,212
8,018
249
271,913
70,977
297,004
(55,360)
241,644
1,127,572
1,369,216		 Total
funds
£
2,973,997
74,214
350,841
86,637
3,485,689
2,181,355
522,495
273,911
36,943
29,174
3,043,878
265,005
706,816
-
706,816
5,482,133
6,188,949

continued...

Page 18

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

11. TANGIBLE FIXED ASSETS

COST
At 1 January 2021
Additions
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Freehold
property
£
262,500
-
262,500
2,625
2,599
5,224
257,276
259,875		 Fixtures
and
fittings
£
44,533
-
44,533
22,270
4,453
26,723
17,810
22,263		 Computer
equipment
£
18,646
2,997
21,643
8,543
5,411
13,954
7,689
10,103		 Totals
£
325,679
2,997
328,676
33,438
12,463
45,901
282,775
292,241

The building is owned jointly by the Dean and Chapter of Bangor Cathedral and the Diocesan Board of Finance (DBF). £350,000 was spent on the building in 1994, the DBF share is 75% (i.e £262,500).

12. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2021
Revaluations
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 COIF
investments
£
5,095,529
821,898
5,917,427
5,917,427
5,095,529

There were no investment assets outside the UK.

continued...

Page 19

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Ministry area donations
Other debtors
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
15.
MOVEMENT IN FUNDS
At 1.1.21
£
Unrestricted funds
General fund
4,359,695
Capital reserve
259,875
St Beuno Fund
80,216
Operational reserve
119,945
4,819,731
Restricted funds
Parsonage board
555,099
Widows & orphans
745,742
Cathedral Partnership
25,172
Cathedral Foodbank
34,293
Good Hope Foundation
6,539
Envangelism Fund
2,373
1,369,218
TOTAL FUNDS
6,188,949

continued...

Page 20

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

15. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Capital reserve
St Beuno Fund
Operational reserve
Restricted funds
Parsonage board
Widows & orphans
Cathedral Foodbank
Good Hope Foundation
Envangelism Fund
TOTAL FUNDS		 Incoming
resources
£
2,662,100
-
30,036
-
2,692,136
359,256
19,542
23,077
3,098
210,793
615,766
3,307,902		 Resources
expended
£
(2,402,085)
(2,599)
(102,825)
-
(2,507,509)
(388,562)
(768)
(3,943)
(749)
(211,584)
(605,606)
(3,113,115)		 Gains and
losses
£
651,237
-
-
15,963
667,200
60,936
93,760
-
-
-
154,696
821,896		 Movement
in funds
£
911,252
(2,599)
(72,789)
15,963
851,827
31,630
112,534
19,134
2,349
(791)
164,856
1,016,683

continued...

Page 21

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Capital reserve
St Beuno Fund
Operational reserve
Restricted funds
Parsonage board
Widows & orphans
Cathedral Partnership
Cathedral Foodbank
Good Hope Foundation
Envangelism Fund
TOTAL FUNDS		 At 1.1.20
£
3,791,148
262,500
187,733
113,180
4,354,561
388,411
695,547
25,065
10,840
7,709
-
1,127,572
5,482,133		 Net
movement
in funds
£
513,187
(2,625)
(107,517)
6,765
409,810
222,048
50,195
107
23,453
(1,170)
2,373
297,006
706,816		 Transfers
between
funds
£
55,360
-
-
-
55,360
(55,360)
-
-
-
-
-
(55,360)
-		 At
31.12.20
£
4,359,695
259,875
80,216
119,945
4,819,731
555,099
745,742
25,172
34,293
6,539
2,373
1,369,218
6,188,949

continued...

Page 22

BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

15. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Capital reserve
St Beuno Fund
Operational reserve
Restricted funds
Parsonage board
Widows & orphans
Cathedral Partnership
Cathedral Foodbank
Good Hope Foundation
Envangelism Fund
TOTAL FUNDS		 Incoming
resources
£
2,962,749
-
25,000
-
2,987,749
351,172
19,253
107
45,645
10,445
71,318
497,940
3,485,689		 Resources
expended
£
(2,636,825)
(2,625)
(132,517)
-
(2,771,967)
(160,370)
(8,789)
-
(22,192)
(11,615)
(68,945)
(271,911)
(3,043,878)		 Gains and
losses
£
187,263
-
-
6,765
194,028
31,246
39,731
-
-
-
-
70,977
265,005		 Movement
in funds
£
513,187
(2,625)
(107,517)
6,765
409,810
222,048
50,195
107
23,453
(1,170)
2,373
297,006
706,816

The general fund is partly represented by St Deiniol Endowment investments of £4,622,779.

Purpose of Designated Funds

Capital reserve

This reserve represents the value of the property.

St Beuno Fund

To support the development of pioneer ministries, fresh expressions of Church and chaplaincy.

Operational reserve

The operational reserve is to cover unforeseen emergencies, contingencies and other related costs.

Purpose of Restricted Funds

Parsonage Board

The Parsonage Board fund was established to maintain parsonages.

Widows and Orphans

The Widows and Orphans fund is used to subsidise pension of clergy widows and dependants and to bring relief for those who may be in need.

Cathedral Partnership

The purpose of the fund is to finance respite care and other support to venerable people.

continued...

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BANGOR DIOCESAN BOARD OF FINANCE BWRDD CYLLID ESGOBAETH BANGOR NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

15. MOVEMENT IN FUNDS - continued

Cathedral Foodbank

The purpose of the fund is to finance groceries for those who fall below the poverty line in Bangor.

Good Hope Foundation

The purpose of the fund is to finance educational activities for disadvantaged children in the Anglican diocese of Lango, Uganda.

Envangelism Fund

The purpose of this fund is to finance the operations of the Llan project.

16. RELATED PARTY DISCLOSURES

Due to the nature of the charity's operations and the composition of the board of trustees, there is a close connection between the Bangor Diocesan Board of Finance, the Bangor Diocesan Housing Association ,Bishop Henry Rowlands Almshouses and Bangor Diocesan Trust.

During the year to 31 December 2021, the following transactions took place:

17. PENSION COMMITMENTS

The charitable company operates a defined contribution pension scheme for the office employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

Pensions for clerics are funded by the Representative Body of the Church in Wales. Clergy pension commitments were made by the charity for the first and second quarter of the year, after which the liability was wholly vested with the RB. In light of changes in responsibilities, the grant received from the RB was reduced

Page 24