COVENTRY DIOCESAN BOARD OF EDUCATION
REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020
Company Registration Number: 3663851 Registered Charity Number: 1091145
Report and Financial Statements including: The Coventry Diocesan Board of Education s.554 Trust Registered Charity Number 1159313
COVENTRY DIOCESAN BOARD OF EDUCATION REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020
| CONTENTS | |
|---|---|
| Page | |
| Chair’s Report | 1 |
| Trustees’ and Directors’ Report | 2 - 7 |
| Auditor’s Report | 8 – 10 |
| Financial Statements | |
| Statement of Financial Activities | 11 |
| Income and Expenditure Account | 11 |
| Balance Sheet | 12 |
| Cash Flow Statement | 13 |
| Notes to the Financial Statements | 14 - 21 |
COVENTRY DIOCESAN BOARD OF EDUCATION CHAIR’S REPORT for the year ended 31 December 2020
It has been a privilege to be nominated to the Board of the DBE by Bishop Christopher in 2020 and subsequently become Chair in September upon the retirement of the Revd. Elaine Scrivens. I would like thank Elaine for her hard work over the past three years and her advocacy for children and their education in the Diocese and I wish her a very happy retirement.
The year was notable for the retirement of Canon Linda Wainscot after 20 years as our Diocesan Director of Education. Linda has done immeasurable work during her tenure to ensure that education is an integral part of the Church’s ministry not only within the Diocese but also on a wider scale. We are grateful for her highly significant contribution and wish her all the very best for the future.
I am delighted that we were able to appoint April Gold as the new Director of Education and we are already benefiting from her perseverance and tenacity to sustain the work in our Diocesan schools. Uniquely most of her work has been impacted by the pandemic but her invention and adaptability and the team she leads has ensured continuity of quality support.
The activities and work of the Diocese in 2020 has been dominated by the coronavirus pandemic. Sadly, some of our schools have lost members of staff and governors to the virus and our thoughts and prayers are with the relatives of those who have lost loved ones.
Our own staff have adapted well to new ways of working and it was necessary to furlough three members of our admin team during the first lockdown. I am very pleased that those of our team that have been ill have recovered; those who were furloughed have re-joined us and all have adapted to new technologies and home working to enable continuing support and service to our schools. We have added to our team Jennifer Jenkins as RE and Spirituality Officer. Jennifer has enhanced and deepened our approach to the Christian distinctiveness of DBE schools.
I must pay tribute to the Headteachers and staff of our schools, who together with their governors have worked incredibly hard to ensure that they have been able to continue to educate and support the children in their care. Our children too deserve high praise for the way they have adapted and worked in different environments, being in school or online.
Although most meetings and events have been curtailed during the year, the DBE has continued to support Diocesan schools through personal contact and on-line events. The DBE developed a Spiritual Well Being and Resilience Resource for Head Teachers which was well received.
Strategically the DBE continues to embrace the Church of England’s Vision for Education, which is deeply Christian with Jesus’ promise of life in all its fullness at its heart. The Board is working with our new DDE to renew our vision for the next 5 years and update our Strategic School Organisation Plan to embrace the opportunities before us and meet the challenges up to 2025.
With adaptable strategic governance through the Board and the Education Team; future funding considerations; and various opportunities such as developing alternative educational provision, the DBE is well placed to navigate towards further developing our advocacy for children. In partnership with our supporting school staff, governors and clergy in our schools we can look forward to sustaining and proclaiming the gospel and our Christian values and ethos throughout the schools of the Diocese.
Chris Edwards Chair
16 June 2021
1
COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020
1. INTRODUCTION
The trustees, who are also directors for the purposes of company law, present their combined trustees’ and directors’ report for Coventry Diocesan Board of Education (“the DBE”), together with the audited financial statements, for the year ended 31 December 2020.
Under the Diocesan Boards of Education Measure 1991, each diocese is required to have a diocesan board of education with the primary purpose being to promote or assist in the promotion of education in the diocese, being education which is consistent with the faith and practice of the Church of England.
The Diocese of Coventry covers a geographic area of just under 700 square miles including Coventry, nearly all of Warwickshire and part of Solihull, with an overall population estimated at approximately 900,000. The mission purpose of the Diocese is “worshipping God, making new disciples, transforming communities”. This mission purpose reaches out through a number of bodies and organisations working in partnership who together make up the “whole Diocese”. This comprises churches, the Cathedral, chaplaincies and schools.
The DBE is responsible for 75 Church of England schools and academies which educate approximately 18,000 children and young people. It supports clergy, foundation governors and staff, provides information and resources relating to the RE curriculum and collective worship and offers practical and pastoral support.
In this diocese, the Diocesan Board of Education is a company limited by guarantee and a registered charity, operating in accordance with its Memorandum and Articles of Association. This report and the audited financial statements also include The Coventry Diocesan Board of Education s.554 Trust (“the s.554 Trust” - a separate registered charity, charity number 1159313) for which the DBE is the sole (corporate) trustee.
The DBE operates from the Benn Education Centre, a former school building in Rugby. Its registered office is the same address, which is: The DBE Offices, The Benn Education Centre, Craven Road, Rugby, Warwickshire CV21 3JZ. The website address is coventrydbe.org.
2. OBJECTIVES AND ACTIVITIES
The DBE’s objectives are the same as its statutory functions determined by the Diocesan Boards of Education Measure 1991 (“the measure”). They are as follows:
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a) to promote or assist in the promotion of education in the diocese, being education which is consistent with the faith and practice of the Church of England;
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b) to promote or assist in the promotion of religious education and religious worship in schools in the diocese;
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c) to promote or assist in the promotion of church schools in the diocese and to advise the governors of such schools and trustees of church educational endowments and any other body or person concerned on any matter affecting church schools in the diocese;
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d) to promote cooperation between the DBE and bodies or persons concerned in any respect with education in the diocese;
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e) the functions assigned to the Board by the measure; and
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f) such other functions not contrary to the measure as are assigned to the Board by the diocesan synod, other than functions relating to church schools or church educational endowments.
The DBE’s principal activity is the provision of a wide range of services aimed at serving and equipping Church of England schools and academies and community schools in formal partnerships. These are mostly provided under a Diocesan Service Agreement. Services additional to those provided under this agreement are also provided to the diocesan multi-academy trust and other stand-alone and school-led diocesan academy trusts.
The principal beneficiaries of these services are the approximately 18,000 children and young people attending the 75 Church of England schools and academies in the diocese. Wider than this, the DBE also aims to promote and assist in the promotion of education consistent with the faith and practice of the Church of England across the diocese as a whole.
2
COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
Other activities include trusteeship of the s.554 Trust, previously a number of separate uniform statutory trusts, united into a single (registered charity) trust. The funds in this trust have arisen from the return to the Church of England of its deemed share of the proceeds from the sale of former school properties. The permitted uses of the capital are explained in note 17 to the financial statements. However, the DBE has no intention to supplement government funding for these uses and instead uses the investment income to subsidise its services. These trusts also include the building which is occupied by the DBE as its principal and registered office.
In addition, property in use by twenty of the Church of England schools in the Diocese is vested in the DBE as trustee; however there is no beneficial interest whilst the property is still in use for the schools.
The trustees have had due regard to the Charity Commission’s public benefit guidance when reviewing and deciding what activities the charity should undertake.
3. ACHIEVEMENTS AND PERFORMANCE
Achievements with the principal activities
The DBE provides support to all Church of England schools and academies in the Diocese in accordance with its statutory obligations and receives a core grant from the Diocesan Board of Finance towards these costs. Additional services are provided through a Diocesan Service Agreement.
The year’s activities have inevitably had to be reshaped as the Coronavirus pandemic and lockdowns have altered our ways of working and those of our schools. We are incredibly proud of the ways in which our Heads and Governors and their staff have risen to the challenges they have had to face as they have navigated moving to home learning, childcare for key workers, phased return of some cohorts, bubbles and distancing, and setting up testing centres. They have looked after the vulnerable, provided quality home learning and in many cases been the lynch pin of their communities. Many did not have a break from February through to July as schools remained open for the vulnerable and key workers throughout the holidays. As a DBE, we have sought to support them by regular contact, with on-line sessions replacing previously planned physical meetings. Nevertheless, we have had to postpone or cancel some major events planned for the year, including our Annual Conference and the ‘Connecting Classrooms’ project in our sister diocese of Kapsabet, Kenya.
With the arrival of Jennifer Jenkins as RE and Spirituality Officer in September, we have been able to provide quality RE and Collective Worship resources and CPD from within the Diocese, rather than externally. Jennifer is training to be an Understanding Christianity trainer and a SIAMS inspector to ensure that we are providing up to date, inspiring and challenging materials to our schools.
SIAMS and OFSTED inspections were suspended in March and there was no published performance data in for the academic year 2019/20. Despite this our schools have survived and thrived and are embracing and being led by their Christian vision focussing on Wisdom, Hope, Dignity and Community.
The trend towards academisation and consolidation within multi academy trusts has however continued. During the course of the year, Blue Coat CofE Academy and Henley in Arden CofE Academy both completed the process of dissolving their Single Academy Trust status and have joined INSPIRE CofE MAT and Arden Forest CofE MAT respectively. Discussions for the development of two new MATs in the south of the Diocese have progressed and Fosse MAT and Stour Federation MAT will come into being in 2021. All Saints, Bedworth will join the Diocese of Coventry MAT early in 2021. The DBE continues to provide support and advice to those schools that have not yet converted as they determine the best course for their future.
Progress has also been made in establishing a pilot project to support schools that have within them children and families with complex emotional and behavioural needs often leading to exclusion. The Beacon Project will now commence in five schools in September 2021. The project will incorporate whole staff training in attachment and trauma aware practices, initiate and support a supervision-based leadership culture and fund the cost of a families worker for the two year project. The schools will operate in a network of mutual support and share their findings and practices more widely through the diocesan network. We will commit to an academic review of the pilot, in a hope to prove a model that can be rolled out more widely.
The DBE continues to actively pursue new opportunities for Church of England schools within the Diocese. We have a strong relationship with our three local authorities and the Regional Schools Commissioner’s team.
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COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
Through these and other activities in support of promoting and assisting in the promotion of education in the diocese consistent with the faith and practice of the Church of England, the trustees are confident that a significant benefit has been delivered for a significant section of the public – our children and young people.
Volunteers
These activities and achievements depend hugely on significant amounts of time contributed by unpaid DBE members and other volunteers by their attendance at meetings and contribution to the strategic development of the DBE. The value of this time cannot be quantified and recognised in the financial statements of the DBE, but is not forgotten and is of huge benefit.
Financial Review
Total income in the year was £467,000 (2019: £482,000). Grants from Coventry Diocesan Board of Finance included in this figure amounted to £159,000 (2019: £161,000).
After expenditure and gains on investments the net income for the year was £384,000 (2019: £761,000). The net income before gains on investments was £42,000 (2019: £0). The amount added to unrestricted funds was £29,000 (2019: £4,000).
Investments
The DBE’s investment policy as trustee of the s.554 Trust is to safeguard capital values of investments in real terms over the long term and to produce real growth in net investment income, whilst complying with the Church of England Ethical Investment Policy.
Investments are principally held in a portfolio managed by Brewin Dolphin Ltd and in two funds managed by CCLA Investment Management Limited - the CBF Church of England Investment Fund and the CBF Church of England Global Equity Income Fund. The total value of investments at 31 December 2020 was £5.62 million (2019: £5.27m).
Reserves policy
Reserves held in restricted or designated funds are held for the purpose of those funds, as described in note 17 to the financial statements. Free reserves are held in the DBE’s General Fund. The trustees’ reserves policy is to ensure the provision of adequate financial resources in an environment of constant change and increasing challenge, without having to make sudden increases in charges for services. The policy is therefore for General Fund reserves not held in fixed assets to be within a wide range of between three and twelve months’ worth of the year’s total resources expended.
General Fund reserves not held in fixed assets at 31 December 2020 were £390,000 (2019: £356,000), amounting to 11.0 months (2019: 8.9 months) of the total resources expended in the year, which was therefore within the policy range.
Plans for future periods
The DBE plans to continue and to extend its existing activities, and in particular:
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a) to continue to provide quality services to Church of England schools and academies and other schools who wish to participate at a time when their own budgets are facing ever increasing pressures;
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b) to continue to develop the Christian distinctiveness of schools in partnership with parishes and the whole diocese, as they work together to enable their communities to live life in all its fullness.
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c) to encourage schools to develop an academy conversion plan. To know their triggers for conversion and think about which type of MAT would suit them best.
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d) to advise and support those schools who either decide or are required to convert to academies; and to support those schools who remain in the maintained sector in securing school improvement and financial support from their LA;
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e) to support opportunities for growth, both at existing schools and on new housing developments.
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f) to support schools in focusing upon improving educational provision for children with Social Emotional and Mental Health needs by building family support systems in partnership with the local church within the community;
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g) to ensure that these activities are financed whilst keeping the General Fund reserves in line with the reserves policy, with funding from the core grant and investment income growing at least in line with inflation.
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COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
4. GOVERNANCE AND MANAGEMENT
The DBE operates in accordance with the measure and its articles of association, which were last updated by a special resolution of the Board on 19th July 2016.
The members of the DBE are members of the company for the purposes of company law, and as such each have a personal liability limited to £1 under their guarantee as company members. They are also the trustees of the DBE and the directors of the company for the purposes of company law. DBE members are determined by the measure and the DBE’s Articles of Association and should be comprised of: the Bishop of Coventry; two persons appointed by the Bishop; nine members elected by Diocesan Synod; and two persons co-opted by the DBE Board. Induction of new members is carried out by providing them with a summary of their responsibilities and other briefing material on appointment and by inviting them to a day conference prior to their first DBE trustees’ meeting.
The DBE members as trustees and directors have and accept ultimate responsibility for directing the affairs of the DBE. The DBE Board has one sub-committee, the Business and Investment Committee. All members complete a skills audit annually and skills are matched wherever possible to ensure sub-committee membership includes an appropriate skill base.
Day to day management is delegated by the trustees to the Diocesan Director of Education, appointed by the Bishop of Coventry. The Diocesan Director of Education is also the Company Secretary.
Under the leadership of the Diocesan Director of Education, the DBE maintains a Risk Register that identifies and assesses the key risks to the organisation and how these can be mitigated. This is updated as risks change and is reviewed at least annually by the Business and Investment Committee and the DBE Board. The major risks currently identified include changes to the level of income receivable, particularly from grants; pressure on schools’ budgets threatening their ability to provide quality worship and RE teaching, both financial and political; insufficient suitably skilled and experienced people to fill foundation governor posts and competition from secular multi academy trusts seeking to acquire church schools.
During the year and as at the date of signing this report the DBE members (also the trustees and directors) were as follows:
Ex officio Bishop of Coventry: The Rt Revd Dr Christopher Cocksworth Nominated by the Bishop of Coventry Mr Christopher Edwards (from 24 January 2020; Chair since 24 September 2020) Mrs Ruth Marlow (until 13 January 2020) The Venerable Sue Field Elected by Diocesan Synod The Revd Elaine Scrivens (Chair; until 24 September 2020) Mrs Dawn Beasley Mr Roderick Clark Mr Michael Draper Mrs Emma Griffiths Mrs Sybil Hanson Mrs Diana Jackson Ms Sharon Jones The Revd Alison Massey Co-opted Mr Jon Haden (until 6 May 2020) Mr Adam Walsh (from 12 March 2019) Ms Lindsey Wright (from 11 June 2020)
The s.554 Trust
The DBE is the sole (corporate) trustee of the s.554 Trust. In that capacity, the DBE has allocated the investment income and the use of the buildings of the trusts for the DBE’s activities, subject to uses in accordance with section 554 of the Education Act 1996, which are set out in the notes to the financial statements.
5
COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
Trustees’ responsibilities for reporting, accounting records and stewardship of assets
The trustees (who are also the directors of the DBE for the purposes of company law) are responsible for preparing the trustees’ and directors’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 these financial statements, the trustees are required to:
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a) select suitable accounting policies and then apply them consistently;
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b) observe the methods and principles in the Charities SORP;
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c) make judgments and estimates that are reasonable and prudent;
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d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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. They are also responsible for the maintenance and integrity of the DBE’s corporate and financial information included on the DBE’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statement may differ from legislation in other jurisdictions.
Auditor
The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees has confirmed that they have taken all the steps that they ought to have taken as trustees and directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
Crowe U.K. LLP were appointed as auditor by the trustees in 2017. A resolution to reappoint Crowe U.K. LLP as auditor to the company and to authorise the Board of Directors to fix the auditor’s remuneration will be proposed at the Annual General Meeting.
5. ADVISERS AND OTHER APPOINTMENTS
Registrar Mrs M H Allanson Rotherham & Co, 8 & 9 The Quadrant, Coventry, CV1 2EG Solicitors Rotherham & Co 8 & 9 The Quadrant, Coventry, CV1 2EG Auditor Crowe U.K. LLP Black Country House, Rounds Green Road, Oldbury, B69 2DG Bankers Bank of Scotland Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ Insurers Ecclesiastical Insurance Office plc Beaufort House, Brunswick Road, Gloucester, GL1 1JZ Investment Managers CCLA Investment Management Ltd 80 Cheapside, London, EC2V 6DZ Brewin Dolphin Ltd 12 Smithfield Street, London, EC1A 9BD
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COVENTRY DIOCESAN BOARD OF EDUCATION TRUSTEES’ AND DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
6. RELATED PARTIES
Coventry Diocesan Board of Finance Ltd provided the DBE with grants of £162,500 in the year (2019: £161,000) towards the costs of the DBE’s statutory obligations and charitable activities.
The s.554 Trust is related to the DBE by virtue of the DBE being its corporate trustee and applying the investment income arising for the DBE’s purposes, subject to the statutory restrictions applying to that income. Accordingly, the assets of the s.554 Trust, although not owned by the DBE in its own right, are included with the financial statements of the DBE.
The DBE provides accommodation to the DMAT and they are related parties as the DBE, together with its Chair and the Chair of its Business and Investment Committee, holds a majority of the voting rights as members of the DMAT.
By Order of the Board
April Gold Company Secretary
Chris Edwards
Chair of Coventry Diocesan Board of Education
16 June 2021
7
COVENTRY DIOCESAN BOARD OF EDUCATION AUDITOR’S REPORT Independent auditor’s report to the members of Coventry Diocesan Board of Education
Opinion
We have audited the financial statements of Coventry Diocesan Board of Education for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 auditor’s 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.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant 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 auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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COVENTRY DIOCESAN BOARD OF EDUCATION AUDITOR’S REPORT (continued) Independent auditor’s report to the members of Coventry Diocesan Board of Education
Opinions on other matters prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit
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the information given in the trustees’ and directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ and directors’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 trustees’ and directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
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COVENTRY DIOCESAN BOARD OF EDUCATION AUDITOR’S REPORT (continued) Independent auditor’s report to the members of Coventry Diocesan Board of Education
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of donation income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Business and Investment Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, designing audit procedures over donation income and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
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 Auditor's 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.
Kerry Brown Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Black Country House, Rounds Green Road, Oldbury, West Midlands, B69 2DG
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COVENTRY DIOCESAN BOARD OF EDUCATION STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020
| Notes Income and endowments from: Grants and donations 4a Charitable activities 4b Other trading activities 4c Investments 4d Total Expenditure on: Raising funds 5a Charitable activities 5b Total Net gains on investments Net income/(expenditure) & movement in funds Reconciliation of funds Total funds brought forward 17 Total funds carried forward 17 |
Unrestricted Restricted Endowment Funds funds Funds £000s £000s £000s 166 35 - 71 - - 29 - - 2 164 - |
2020 2019 Total Total £000s £000s 201 165 71 78 29 28 166 207 |
|---|---|---|
| 268 199 - |
467 482 |
|
| 29 15 - 210 171 - |
44 46 381 436 |
|
| 239 186 - |
425 482 |
|
| - 17 367 |
384 761 |
|
| 29 30 367 |
426 761 |
|
| 853 199 5,508 |
6,560 5,799 |
|
| 882 229 5,875 |
6,986 6,560 |
INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2020
| Total income Gains on investments Gross income Total expenditure Net income for the year |
2020 2019 £000s £000s 467 464 17 - |
|---|---|
| 484 464 (425) (464) |
|
| 59 - |
The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities.
11
COVENTRY DIOCESAN BOARD OF EDUCATION BALANCE SHEET as at 31 December 2020
| Notes FIXED ASSETS Tangible assets 11 Investments 12 CURRENT ASSETS Debtors 13 Cash and cash equivalents 14 CURRENT LIABILITIES Creditors: Amounts falling due within one year 15 NET CURRENT ASSETS NET ASSETS 19 FUNDS Unrestricted funds 17 Restricted funds 17 Endowment funds 17 TOTAL FUNDS |
2020 £000s 57 1,620 |
2020 £000s 378 5,619 |
2019 £000s 42 899 |
2019 £000s 387 5,273 |
|---|---|---|---|---|
| 5,997 989 |
5,660 900 |
|||
| 1,677 (688) |
941 (41) |
|||
| 6,986 | 6,560 | |||
| 882 229 5,875 |
853 199 5,508 |
|||
| 6,986 | 6,560 |
The financial statements on pages 11 to 21 were approved by the Board of Directors and authorised for issue on 16 June 2021 and are signed on its behalf by:
Chris Edwards
Chair of Coventry Diocesan Board of Education
12
COVENTRY DIOCESAN BOARD OF EDUCATION CASH FLOW STATEMENT for the year ended 31 December 2020
| 2020 2020 £000s £000s Cash flows from operating activities: Net cash used in operating activities 517 Cash flows from investing activities: Dividends, interest and rent from investments 166 Proceeds from sale of investments 248 Purchase of investments (210) Purchase of tangible fixed assets - Net cash provided by investing activities 204 Change in cash and cash equivalents in the year 721 Cash and cash equivalents at 1 January 899 Cash and cash equivalents at 31 December 1,620 RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 £000s Net income for the year 426 Adjustments for: Depreciation charges 9 (Gains)/losses on investments (384) Dividends, interest and rents from investments (166) (Increase)/decrease in debtors (15) Increase/(decrease) in creditors 647 Net cash used in by operating activities 517 Analysis of cash and cash equivalents Cash in hand 1,001 Short term deposits (less than 3 months) 619 Total cash and cash equivalents 1,620 |
2020 £000s 166 248 (210) - |
2020 £000s 517 204 |
2019 2019 £000s £000s (214) 211 210 (251) (16) 154 (60) 959 899 2019 £000s 761 7 (761) (211) 6 (16) (214) 304 595 899 |
2019 2019 £000s £000s (214) 211 210 (251) (16) 154 (60) 959 899 2019 £000s 761 7 (761) (211) 6 (16) (214) 304 595 899 |
|---|---|---|---|---|
| 721 899 |
(60) 959 |
|||
| 1,620 | 899 | |||
| 2019 £000s 761 7 (761) (211) 6 (16) |
||||
| 517 | (214) | |||
| 1,001 619 |
304 595 |
|||
| 1,620 | 899 |
13
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
1 Principal accounting policies
Basis of accounting
The DBE is a charitable company and a public benefit entity, therefore, the financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (FRS 102), the Companies Act 2006 and the applicable UK accounting standard (FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland). The financial statements have been prepared under the historical cost convention except that fixed asset investments are included at fair value at the balance sheet date. The trustees are satisfied that the DBE has adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis.
Income
Income is included in the Statement of Financial Activities when the charity is legally entitled to it, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.
Investment income from the managed portfolio is recognised when received by the fund manager. Investment income from Common Investment Funds managed by CCLA Investment Managers Ltd is recognised when dividends are declared.
Income is recognised as deferred where the event or period to which the income relates occurs beyond the end of the financial period being reported on.
Expenditure
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate similar costs under each category of the Statement of Financial Activities.
Support costs consist of staff costs, office costs, building costs and governance costs. All support costs are allocated to the purpose of charitable activities. Costs are allocated to activities using a time recording method.
Pension costs are charged to the Statement of Financial Activities in the year for which the contributions are payable.
Tangible fixed assets
Depreciation of tangible fixed assets is charged by equal annual instalments at rates estimated to write off their cost or valuation less any residual value over the expected useful lives that are as follows:
| less any residual value over the expected | useful lives |
|---|---|
| Freehold Buildings | 50 years |
| IT & Telecommunications Equipment | 4 years |
| Office Furniture and Fittings | 4 years |
No depreciation is provided on freehold land. Individual items of office equipment and furniture with a purchase price of £5,000 or less are written off in the year in which the assets are acquired.
Fixed asset investments
Investments are included in the balance sheet at fair value and the gain or loss taken to the Statement of Financial Activities.
Current assets and liabilities
Debtors are measured at the transaction price less any impairment losses.
Cash and cash equivalents include cash at bank and in hand and short term deposits with any qualifying institutions repayable on demand without notice.
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Creditors are measured at the transaction price less any amounts settled.
Agency arrangements
The charity acts as agent in the collection of grants from government, local authorities and other funds, and payment of approved invoices for school building projects on behalf of certain Church of England schools in the diocese. This income and expenditure is excluded from the income and expenditure of the charity and any balances due from or held on behalf of schools are excluded from the balance sheet and reported separately in the notes to the financial statements.
Fund accounting
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes below.
Endowment funds are funds to be retained as capital funds held on trust by The Coventry Diocesan Board of Education s.554 Trust, registered charity number 1159313, for which the DBE is the sole (corporate) trustee. As there is power of discretion for the trustee to convert the endowed funds into income, the funds are classed as expendable endowment.
14
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
Principal accounting policies (continued)
Unrestricted income funds are funds that are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. The trustees have designated some of these resources for specific purposes, as detailed in the notes below. Unrestricted funds that have not been so designated are held in the General Fund.
2 Pension scheme
The DBE participates in the Pension Builder Scheme section of the Church Workers’ Pension Fund for lay staff. The scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the DBE and the other participating employers.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending on investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year and shown in note 8 below are the contributions payable.
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020. For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, the DBE could become responsible for paying a share of that employer’s pension liabilities.
3 Net income
| Net income is stated after charging: Auditor’s remuneration Depreciation |
2020 2019 £000s £000s 7 6 9 7 |
|---|---|
15
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
4 Analysis of income and endowments
| 4 Analysis of income and endowments |
|
|---|---|
| a Grants and donations Grants from Coventry Diocesan Board of Finance Ltd Allchurches Trust Lucy Price Wasperton Estate Charity The 29 May 1961 Charity Coronavirus Job Retention Scheme b Charitable activities Services to schools and academies Other c Other trading activities Accommodation charges d Investments Rental income Dividend income Bank and deposit interest 5 Analysis of expenditure a Raising funds Accommodation costs Investment management costs b Charitable activities Services to schools and academies Other |
General Fund Restricted funds Endowment Funds 2020 Total 2019 Total £000s £000s £000s £000s £000s 159 - - 159 161 - 25 - 25 - - - - - 4 - 10 - 10 - 7 - - 7 |
| 166 35 - 201 165 |
|
| 59 - - 59 42 12 - - 12 36 |
|
| 71 - - 71 78 |
|
| 29 - - 29 28 |
|
| - 5 - 5 10 - 159 - 159 197 2 - - 2 4 |
|
| 2 164 - 166 211 |
|
| General Fund Restricted funds Endowment funds 2020 Total 2019 Total £000s £000s £000s £000s £000s 29 - - 29 28 - 15 - 15 18 |
|
| 29 15 - 44 46 |
|
| 210 171 - 381 419 - - - - 17 |
|
| 210 171 - 381 436 |
6 Analysis of resources expended including allocation of support costs
| Raising funds Accommodation costs Investment management costs Charitable activities Services to schools and academies Other |
Staff costs Purchased services and materials Support costs 2020 Total 2019 Total £000s £000s £000s £000s £000s 29 - 29 28 15 - 15 18 294 33 54 381 419 - - - - 17 |
|---|---|
| 294 77 54 425 482 |
16
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
7 Analysis of support costs
| Analysis of support costs | |
|---|---|
| Premises costs Office costs Irrecoverable VAT Governance costs: External audit Legal and professional fees |
2020 2019 £000s £000s 6 1 29 37 7 11 7 7 5 6 |
| 54 62 |
8 Staff numbers and costs
| Salaries Social security costs Pension costs Average number of staff employed on a full-time equivalent basis Administration and support The average headcount in the year was 9 (2019 9). The numbers of staff whose emoluments, excluding pension contributions, amounted to more than £60,000 were as follows: £70,001 - £80,000 |
2020 2019 £000s £000s 247 271 25 20 22 23 |
|---|---|
| 294 314 |
|
| Number Number 6 6 |
|
| 0 1 |
9 Remuneration of key management personnel
Key management personnel are those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the charity. The remuneration for key management personnel, including employer’s national insurance and pension contributions, was £90,744 in the year (2019: £94,379).
10 Trustees and volunteers
The DBE benefits from significant amounts of time contributed by unpaid DBE members (who are also trustees) and other volunteers by their attendance at meetings and contribution to the strategic development of the DBE. The value of this time cannot be quantified and recognised in the financial statements of the DBE.
None of the trustees received any emoluments from the DBE for services performed as directors (2019: none). No trustee was reimbursed for travelling expenses relating to activity as a trustee and member of the DBE (2019: 1 and £74).
11 Tangible fixed assets
| Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2019 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
17 Freehold land & buildings Office equipment Total £000s £000s £000s 410 33 443 - - - - 410 33 443 38 18 56 5 4 9 43 22 65 367 11 378 372 15 387 |
|---|---|
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
All tangible fixed assets were used for direct charitable purposes. Freehold land & buildings includes land of £153,000
12 Fixed asset investments
| Fair value at 1 January 2020 Additions at cost Disposals Gains Fair value at 31 December 2020 Historical cost at 31 December 2020 |
Listed Unlisted Total £000s £000s £000s 2,371 2,902 5,273 210 210 (248) (248) 63 321 **384 ** |
|---|---|
| 2,396 3,223 5,619 |
|
| 1,707 1,875 3,582 |
Investments are held primarily to provide an investment return. Listed investments consist of a portfolio managed by Brewin Dolphin Ltd investment managers. Unlisted investments consist of holdings in CBF Church of England Common Investment Funds managed by CCLA Investment Managers Ltd.
13 Debtors
| Amounts falling due within one year Trade debtors Other debtors, prepayments and accrued income |
2020 2019 £000s £000s 16 9 41 33 |
|---|---|
| 57 42 |
14 Cash and cash equivalents
Cash and cash equivalents include short term deposits of £619,000 (2019: £595,000) and cash balances held as agent on behalf of Diocesan schools of £605,000.
15 Creditors: amounts falling due within one year
| Trade creditors Accruals and deferred income Taxation and social security Pension contributions Provision for grants repayable Balances held as agent on behalf of Diocesan schools Total amounts falling due within one year |
2020 2019 £000s £000s 8 3 32 29 15 7 2 2 26 - 605 - |
|---|---|
| 688 41 |
16 Financial Instruments
| Financial Instruments | ||
|---|---|---|
| 2020 | 2019 | |
| £000s | £000s | |
| Financial assets measured at fair value through income and expenditure | 5,619 | 5,273 |
| Financial assets that are debt instruments measured at amortised cost | 1,636 | 908 |
| Financial liabilities measured at amortised cost | 35 | 34 |
Financial assets measured at fair value through income and expenditure comprise listed and unlisted investments. Financial assets that are debt instruments measured at amortised cost comprise cash at bank and trade debtors. Financial liabilities measured at amortised cost comprise trade creditors, accruals and pension contributions.
18
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
17 Statement of funds
| UNRESTRICTED FUNDS Lucy Price Fund (Designated) General Fund Total unrestricted funds RESTRICTED FUNDS The Beacon Fund s.554 Trust Income Fund Total restricted funds ENDOWMENT FUNDS (Expendable) s.554 Trust Capital Fund Total endowment funds TOTAL FUNDS The comparative figures for 2019 are: UNRESTRICTED FUNDS Lucy Price Fund (Designated) General Fund Total unrestricted funds RESTRICTED FUNDS s.554 Trust Income Fund Total restricted funds ENDOWMENT FUNDS (Expendable) s.554 Trust Capital Fund Total endowment funds TOTAL FUNDS |
At 1 Jan 2019 £000s 515 _334 _ |
At 1 Jan 2020 Income Expenditure Gain on investments At 31 Dec 2020 £000s £000s £000 £000s £000s 482 - (1) 481 371 268 (238) **401 ** |
|---|---|---|
| 853 268 (239) - **882 ** |
||
| - 35 - 35 199 164 (186) 17 **194 ** |
||
| 199 199 (186) 17 229 |
||
| 5508 - - 367 5,875 |
||
| 5,508 - - 367 5,875 |
||
| 6,560 467 (425) 384 6,986 |
||
| Income Expenditure Gain on investments Transfers At 31 Dec 2019 £000s £000s £000s £000s £000s - (17) (16) 482 275 (254) 16 _371 _ |
||
| 849 | 275 (271) - - 853 |
|
| 203 | 207 (211) - 199 |
|
| 203 | 207 (211) - - 199 |
|
| 4,747 | - - 761 5,508 |
|
| 4,747 | - - 761 - 5,508 |
|
| 5,799 | 482 (482) 761 - 6,560 |
Endowment funds include a revaluation reserve of £2,037,000 (2019: £1,675,000).
18 Descriptions of Funds
s.554 Trust Capital Fund - Expendable Endowment
The s.554 Trust Capital Fund consists of the funds and property of The Coventry Diocesan Board of Education s.554 Trust (“the s.554 Trust”), registered charity number 1159313 for which the DBE is the sole (corporate) trustee. These assets arose from redundant educational properties and their sales proceeds. The assets were originally held under separate uniform statutory trusts with the same permitted uses, treated in recent years as a single trust and fund for the purposes of inclusion in these financial statements. On 5 March 2014, the DBE members passed a resolution to manage the uniform statutory trusts as a single united charity, which was registered with the Charity Commission on 21 November 2014.
The DBE as trustee of the s.554 Trust may, after payment of any expenses incurred in connection with the administration of the trusts, apply the capital of the s.554 Trust’s assets:
-
(a) in or towards the purchase of a site for, or the erection, improvement or enlargement of:
-
(i) the premises of any Church of England school in the Diocese of Coventry or
-
(ii) the premises of a teacher’s house for use in connection with any Church of England school in the Diocese of Coventry; and
(b) for the maintenance of any Church of England school in the Diocese of Coventry or of a teacher’s house for use in connection with any Church of England school in the Diocese of Coventry.
19
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
s.554 Trust Income Fund - Restricted
This fund has arisen from income from the assets of the Uniform Statutory Trusts which are combined into a single trust as described above. This fund may be used for any of the following purposes:
(a) for the same purposes as the s.554 Trust Capital Fund as laid out above;
(b) in or towards the provision of advice, guidance and resources (including materials) in connection with any matter related to the management of, or education provided at, any Church of England school in the Diocese of Coventry;
(c) the provision of services for the carrying out of any inspection of any Church of England school in the area required by Part I of the School Inspection Act 1996(a); and
(d) to defray the cost of employing or engaging staff in connection with the application of the s.554 Trust Income or Capital Funds.
The Beacon Fund – Restricted
The Beacon Project has been established to fund a new approach to working with children at risk of exclusion focusing upon improving educational provision through trauma and attachment aware practices for children with social, emotional and mental health needs (SEMH). Grants and donations received for the specific purpose of supporting this project are accounted for in this fund. Project expenditure in excess of the restricted funds receivable is funded out of the Lucy Price designated fund.
Lucy Price Fund – Designated
This fund was established when the Lucy Price Wasperton Estate Charity made a donation to the DBE of £515,000 upon its winding up and realisation of its assets in 2018. The trustees have resolved that this donation should be designated for specific purposes, which include the bidding for new schools, supporting school improvement and academisation in existing voluntary aided and controlled schools and creating additional alternative provision in existing or new schools (including the Beacon Project).
General Fund
Unrestricted funds that are not held for any specific purpose are held in the General Fund.
19 Analysis of net assets between funds
| Funds at 31 December 2020 are represented by: Tangible fixed assets Fixed asset investments Net current assets Total net assets Comparative figures: Funds at 31 December 2019 are represented by: Tangible fixed assets Fixed asset investments Net current assets Total net assets |
Unrestricted funds Restricted funds Endowment funds 2020 Total £000s £000s £000s £000s 11 194 173 378 - - 5,619 5,619 871 35 83 989 |
|---|---|
| 882 229 5,875 6,986 |
|
| 15 199 173 387 - - 5,273 5,273 838 - 62 900 |
|
| 853 199 5,508 6,560 |
20 School building and IT projects
The DBE assists diocesan voluntary aided schools with the administration of funding for school building projects and the provision of IT equipment. The DBE acts as the agent of school governing bodies in receiving funding from the Department for Education, governing bodies and other funding sources and settling and matching it with the contractors’ costs and professional fees. This activity of the DBE is not reflected in the Statement of Financial Activities as the transactions are those of the school governing bodies rather than the DBE. Cash balances held for this purpose are included in the Balance Sheet with the corresponding balance shown in creditors, as shown in notes 14 and 15. The total income and expenditure on school building projects and IT equipment during the year was as follows:
| Balance held at 1 January 2020 Government grants received Other contributions Expenditure Balance held at 31 December 2020 |
20 2020 2019 £000s £000s 84 137 927 526 44 59 (450) (638) 605 84 |
|---|---|
COVENTRY DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)
Coventry DBE acts as the lead Diocese for a grouping of Midlands dioceses for receipt of capital funding from the Department for Education for voluntary aided schools. In this capacity it received grant on behalf of three (2019: 0) other dioceses, which was then immediately remitted to them. The amount received and remitted in 2020 was £1,273,753 (2019: £0).
21 Related party transactions
Coventry Diocesan Board of Finance Ltd provided the DBE with grants of £162,500 (2019: £161,111) in the year towards the costs of the DBE’s charitable activities including its statutory obligations. £3,500 of this amount has been deferred. No other goods and services were provided by the DBF in the year (2019: £9,937). The amount owing to the Coventry Diocesan Board of Finance Ltd at 31 December 2020 in relation to transactions between the two parties was £0 (2019: £816).
The DBE provided the DMAT with invoiced services totalling £26,893 in the year (2019 £28,289) with no profit element. The amount owed to the DBE at 31 December 2020 in relation to transactions between the two parties was £2,160 (2019: £2,160).
22 Prior year comparative Statement of Financial Activities
Income and endowments from: Donations Charitable activities Other trading activities Investments Total Expenditure on: Raising funds Charitable activities Total Net (losses)/gains on investments Net income/(expenditure) & movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Restricted Endowment Funds funds Funds £000s £000s £000s 165 - - 78 - - 28 - - 4 207 - |
2019 2018 Total Total £000s £000s 165 736 78 79 28 42 207 172 |
|---|---|---|
| 275 207 - |
482 1,029 |
|
| 28 18 - 243 193 - |
46 40 436 433 |
|
| 271 211 - |
482 473 |
|
| - - 761 |
761 (241) |
|
| 4 (4) 761 |
761 315 |
|
| 849 203 4,747 |
5,799 5,484 |
|
| 853 199 5,508 |
6,560 5,799 |
21