**Registered number: 3663851 Charity number: 1091145** ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2022** ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the DBE, its Trustees and advisers**|1| |**Trustees' report**|2 - 7| |**Independent auditor's report on the financial statements**|8 - 11| |**Statement of financial activities**|12| |**Income and expenditure account**|13| |**Balance sheet**|14| |**Statement of cash flows**|15| |**Notes to the financial statements**|16 - 37| ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE DBE, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022** |**Trustees**|Mrs Dawn Beasley (resigned 3 March 2022)| |---|---| ||Mr Roderick Clark| ||Mr Michael Draper| ||Mrs Emma Griffiths| ||Mrs Sybil Hanson| ||Ms Sharon Jones| ||Ms Claire Russell (appointed 4 March 2022)| ||The Revd Diane Thompson (appointed 1 April 2022)| ||Mr Adam Walsh, Co-opted| ||Ms Lindsey Wright, Co-opted| ||The Venerable Sue Field, Nominated by the Bishop of Coventry (resigned 30 April
2023)| ||Mr Christopher Edwards (Chair), Nominated by the Bishop of Coventry| ||Bishop of Coventry: The Rt Revd Dr Christopher Cocksworth, Ex officio| |**Company registered**
**number**
3663851
**Charity registered**
**number**
1091145
**Registered office**
The Benn Education Centre
Craven Road
Rugby
Warwickshire
CV21 3JZ
**Company secretary**
Mrs April Gold
**Independent auditor**
Crowe U.K. LLP
Black Country House
Rounds Green Road
Oldbury
West Midlands
B69 2DG|| Page 1 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022** 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 2022. 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. ## **Objectives and activities** ## **a. Policies and objectives** “Inspiring schools to demonstrate the love of Christ as they educate for life in all its fullness” The DBE exists to deliver the requirements of the Diocesan Boards of Education Measure 2021, in particular to: - promote or assist in the promotion of education in the diocese that is consistent with the faith and practice of the Church of England; - promote or assist in the promotion of religious education and religious worship in schools in the diocese; - promote or assist in the promotion of church schools in the diocese; - promote co-operation between itself and other persons concerned with education in the diocese. The DBE’s principal activity is to serve and equip Church of England schools and academies in Coventry diocese to worship God, make new disciples and transform their communities. Services which relate directly to obligations in the DBE Measure are provided without charge, but the remaining suite of training, advice and resources are provided under a Diocesan Service Agreement. In addition to services provided to schools, the DBE also work in partnership with the Church of England Education Office, Regional Schools Commissioner, Local Authorities and Multi Academy Trusts to ensure that all schools are well supported in performing their statutory duties. The principal beneficiaries of these services are the approximately 18,600 children and young people attending the 76 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. 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 19 to the financial statements. The DBE 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 29 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. The trustees’ vision to support schools to achieve demonstrable Christian distinctiveness in every aspect of the educational experience is based on Jesus’ words from Matthew 5,13-16: “You are the salt of the earth. But if the salt loses its saltiness, how can it be made salty again? It is no longer good for anything, except to be thrown out and trampled underfoot. “You are the light of the world. A town built on a hill cannot be hidden. Neither do people light a lamp and put it Page 2 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022** ## **Objectives and activities (continued)** under a bowl. Instead they put it on its stand, and it gives light to everyone in the house. In the same way, let your light shine before others, that they may see your good deeds and glorify your Father in heaven.” ## **b. Strategies for achieving objectives** Current strategic objectives include: - Facilitating partnerships between schools and parishes to worship God incarnationally. The school building and community are integral to the Church community in the parish. It is the way children, families and staff encounter God. School becomes Church. - Intentionally co-creating a habitus and curriculum in our schools rooted in Wisdom, Hope, Dignity and Community. Schools develop a “way of being” rooted in their Christian vision. This impacts curriculum development and teaching practices encouraging loving relationships where we learn to work with others and disagree well. Schools are radically inclusive; valuing diversity, embracing difference, nurturing aspiration. - Inspiring others to “come and see” using a discipleship model to form collaborative school groupings. Schools convert to become part of strong, collaborative MATs delivering high quality, value for money education through CofE schools and community schools. Staff, children and families develop a language of faith which they take with them beyond school. - Creating opportunities for school communities to become imagineers, calling out injustice to take action to transform communities. Schools teach a Kingdom Curriculum asking big questions which encourage children to imagine solutions and drive change, in the process developing courageous advocacy and leadership skills. ## **Achievements and performance** ## **a. Main achievements of the DBE** 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. In 2022-23 all DBE schools signed up to the DSA and we have been able to provide regular Head Teacher briefings and a wide range of CPD for all levels of leadership within schools all focussed upon Christian Distinctiveness. We were pleased to be able to host a face to face Governors Conference in March and a residential Head Teacher Conference in June. We engaged Rev Kate Bottley to give an after dinner speech in the evening which entertained, and encouraged our Head Teachers as Spiritual leaders of their schools. This year schools have transitioned back to a business as usual model, with restrictions removed and the ability to operate in a more familiar way. However, the rates of attendance of staff and children continue to be affected by the pandemic and many of our schools have noticed an increase in additional needs in the children within their communities. The cost of living crisis has compounded this and schools continue to be the first line of support in terms of wellbeing and safeguarding of children and families. The DBE’s ongoing Beacon project has enabled the participating schools to work reflectively to adapt their practices to meet these needs and the Heads speak passionately about what the project has stimulated in their thinking and enabled in their teams. There is still much to do, and as the two year pilot comes to an end in 2023 the DBE will consider how it continues to speak into the space of radical inclusion with a view to as many children as possible having their educational needs met within their local school communities where ever possible. During the second half of 2022 the DBE team began planning ALIVE 2023 a Praise Party and Picnic for all Key Page 3 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022** ## **Achievements and performance (continued)** Stage 2 children and staff to be held at NAEC Stoneleigh in June 2023. The accumulated reserves will be used to cover the cost of the event including a contribution towards coach travel. The event seeks to celebrate being a family of schools united in purpose to share the love of Christ and educate children for life in all its fullness. Our theme is World Changers and we will encourage the children and their teachers to consider how in offering their gifts and talents in the service of others, collectively they can change the world. SIAMS inspections were carried out in 3 schools with two being graded Excellent and one Good. OFSTED visited 15 schools during 2022 with 12 schools receiving a ‘Good’ classification. Harris CofE Secondary Academy achieved its first ‘Good’ outcome since academy conversion, confirming the hard work of all of the staff in the school and the impact of the school’s Christian vision on driving improvement. One school progressed from a judgement of ‘Serious Weaknesses’ to Requires Improvement, and one school remained ‘Requires Improvement’ but with some areas demonstrating a good standard. One school declined from ‘Good’ to ‘Requires Improvement’ demonstrating the vulnerability of small schools to the increasingly exacting measures used under the new OFSTED framework. Grant funding from the Culham St Gabriel’s Foundation enabled us to continue to work on RE resources focussing upon religious world views and courageous advocacy. This resource will be published in 2023 and available to RE teachers nationally. The DBE continues to provide support and advice to those schools that have not yet converted to become an academy as they determine the best course for their future. Three schools became academies during 2022. 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. Through activities, which promote and assist 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. ## **b. Volunteers** These activities and achievements depend upon significant amounts of time contributed by 13 unpaid DBE members, 13 Members and 50 Directors of the 6 DBE controlled Multi Academy Trusts, alongside over 200 foundation governors in individual schools, who contribute 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 £450,000 (2021: £554,000). Grants from Coventry Diocesan Board of Finance included in this figure amounted to £159,000 (2021:£159,500). After expenditure and losses on investments the net income for the year was a loss of £887,000 (2021: a gain of £843,000). The net income on operations before movements on investments and expenditure on major projects was a surplus of £35,000 (2021: a loss of £15,000). The amount deducted from unrestricted funds was £136,000 (2021: £59,000). Page 4 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022** ## **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 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 2022 was £5.9 million (2021: £6.4 million). The Trustees decided to consolidate all their investments with CCLA Investment Management Limited, to ensure compliance with the requirements of the Church of England’s Ethical Investment Policy, and the transfer of funds out of Brewin Dolphin was effected during the first half of the year. ## **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 2022 were £328,000 (2021: £404,000), amounting to 10 months (2021:11 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: 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; 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. c) to work with the six CofE majority MATs in the Diocese, maintained schools, local authorities and the Regional Schools Commissioner to develop an academy conversion plan for each school and develop a pipeline of conversions so that every school is in a strong MAT by September 2030. d) to support schools who remain in the maintained sector to secure school improvement and financial support from their LA; e) to support opportunities for growth, both at existing schools and on new housing developments. f) to support schools in focusing upon improving educational provision for children with special educational and Social Emotional and Mental Health needs by providing training in trauma aware and reflective practice for school staff and building family support systems in partnership with the local church within the community; g) to ensure that these activities are financed sustainably whilst keeping the General Fund reserves in line with the reserves policy; Page 5 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022** h) to bless the church schools in the diocese and the children attending them with new ways to experience the love and challenge of demonstrating the love of Christ ## **Structure, governance and management** ## **a. Constitution** Coventry Diocesan Board of Education is registered as a charitable company limited by guarantee and was set up by a Trust deed. 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 the 6th January 2022 to come into effect on 1 March 2022. 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 in 2022 comprised: the Bishop of Coventry; three persons appointed by the Bishop; five members elected by Diocesan Synod; and four 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, where possible, 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. A skills audit is carried out periodically 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, who is 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; financial and/or political pressure on schools’ budgets threatening their ability to provide quality worship and RE teaching; insufficient suitably skilled and experienced people to fill foundation governor posts; competition from secular multi academy trusts seeking to acquire church schools and change their core purpose. ## **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. Page 6 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022** ## **Statement of Trustees' responsibilities** The Trustees (who are also the directors of the DBE for the purposes of company law) are responsible for preparing the Trustees' 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the DBE and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP (FRS 102); - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the DBE will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the DBE's transactions and disclose with reasonable accuracy at any time the financial position of the DBE and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the DBE and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Disclosure of information to auditor** Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. ## **Auditor** The auditor, Crowe U.K. LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by: ## **Mr Christopher Edwards** (Chair of Trustees) Date: Page 7 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **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 2022 which comprise the Statement of financial activities, the Income and expenditure account, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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. Page 8 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COVENTRY DIOCESAN BOARD OF EDUCATION (CONTINUED)** ## **Other information** The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to 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. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our 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' Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report. ## **Responsibilities of trustees** As explained more fully in the Trustees' responsibilities statement, 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 Page 9 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COVENTRY DIOCESAN BOARD OF EDUCATION (CONTINUED)** 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. 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: We obtained an understanding of the legal and regulatory frameworks within which the Company 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. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 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 Company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, environmental protection legislation, Health and safety legislation, Taxation legislation and Employment legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors 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 in the following areas: timing of recognition of income; the override of controls by management, including posting of unusual journals; inappropriate treatment of non-routine transactions and areas of estimation uncertainty; and manipulating the Company’s key performance indicators to meet management targets. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and income transactions and review of accounting estimates for biases. 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 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. Page 10 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COVENTRY DIOCESAN BOARD OF EDUCATION (CONTINUED)** ## **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 its 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** Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date: Page 11 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022** |**Note**
**Income and**
**endowments from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
7
Charitable activities
8
**Total expenditure**
**Net expenditure**
**before net**
**(losses)/gains on**
**investments**
Net (losses)/gains on
investments
**Net**
**(expenditure)/income**
Transfers between
funds
20
**Net movement in**
**funds**
**Reconciliation of**
**funds:**
Total funds brought
forward
Net movement in funds
**Total funds carried**
**forward**|**Unrestricted**
**funds**
**2022**
**£000**
**164**
**75**
**7**
**-**
**246**
**32**
**255**
**287**
**(41)**
**-**
**(41)**
**(90)**
**(131)**
**824**
**(131)**
**693**|**Restricted**
**funds**
**2022**
**£000**
**46**
**-**
**-**
**207**
**253**
**10**
**342**
**352**
**(99)**
**-**
**(99)**
**90**
**(9)**
**195**
**(9)**
**186**|**Endowment**
**funds**
**2022**
**£000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(742)**
**(742)**
**-**
**(742)**
**6,811**
**(742)**
**6,069**|**Total**
**funds**
**2022**
**£000**
**210**
**75**
**7**
**207**
**499**
**42**
**597**
**639**
**(140)**
**(742)**
**(882)**
**-**
**(882)**
**7,830**
**(882)**
**6,948**|_Total_
_funds_
_2021_
_£000_
_173_
_189_
_17_
_176_
_555_
_43_
_515_
_558_
_(3)_
_847_
_844_
_-_
_844_
_6,986_
_844_
_7,830_| |---|---|---|---|---|---| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 37 form part of these financial statements. Page 12 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022** |**Gross income in the reporting period**
Less: Total expenditure
**Net expenditure for the reporting period**|**Total funds**
**2022**
**£000**
**499**
**(639)**
**(140)**|_Total funds_
_2021_
_£000_
_447_
_(555)_
_(108)_| |---|---|---| The notes on pages 16 to 37 form part of these financial statements. Page 13 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee) REGISTERED NUMBER: 3663851** ## **BALANCE SHEET AS AT 31 DECEMBER 2022** |**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Debtors
16
Cash at bank and in hand
17
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total net assets**
**Charity funds**
Endowment funds
20
Restricted funds
20
Unrestricted funds
20
**Total funds**|**2022**
**£000**
**113**
**1,039**
**1,152**
**(453)**|**2022**
**£000**
**360**
**5,889**
**6,249**
**699**
**6,948**
**6,069**
**186**
**693**
**6,948**|_2021_
_£000_
_212_
_1,494_
_1,706_
_(650)_|_2021_
_£000_
_369_
_6,405_| |---|---|---|---|---| |||||_6,774_
_1,056_| |||||| |||||_7,830_| |||||_6,811_
_195_
_824_| |||||| |||||_7,830_| The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: ## **Mr Christopher Edwards** (Chair of Trustees) Date: The notes on pages 16 to 37 form part of these financial statements. Page 14 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022** |**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 16 to 37 form part of these financial statements|**2022**
**£000**
**(436)**
**207**
**2,692**
**(2,918)**
**(19)**
**-**
**(455)**
**1,494**
**1,039**|_2021_
_£000_
_(363)_
_176_
_578_
_(517)_
**237**
**-**
**(126)**
_1,620_
_1,494_| |---|---|---| Page 15 **COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **1. General information** The company is a company limited by guarantee (registered number 3663851), which is incorporated and registered in England and Wales. Its charity registration number is 1091145. The registered office and principal place of business is The Benn Education Centre, Craven Road, Rugby, Warwickshire, CV21 3JZ. The principal activity is to serve and equip Church of England school and academies in Coventry diocese to worship God, make new disciples and transform their communities. ## **2. Accounting policies** ## **2.1 Basis of preparation of financial statements** The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Coventry Diocesan Board of Education meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost except the fixed asset investments which 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. ## **2.2 Income** Income is included in the Statement of Financial Activities when the charity is legally entitled to it, ultimate receipt is probable and 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. ## **2.3 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 consits of staff costs, ofice 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 Actvities in the year for which contributions are payable. Page 16 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **2. Accounting policies (continued)** ## **2.4 Tangible fixed assets and depreciation** Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following bases: |Freehold property|- 50 years| |---|---| |Office equipment|- 4 years| No depreciation is provided on freehold land. ## **2.5 Investments** Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities. ## **2.6 Debtors** Debtors are measured at the transaction price less any impairment losses. ## **2.7 Cash at bank and in hand** Cash and cash equivalents include cash at bank and short term deposits with any qualifying institutions repayable on demand without notice. ## **2.8 Liabilities and provisions** Liabilities are recognised as soon as there is a legal or constructive obligation commiting the charity to pay out resources. Creditors are measured at transaction price less any amounts settled. ## **2.9 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 seperately in the notes to the financial statements. Page 17 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **2. Accounting policies (continued)** ## **2.10 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the DBE and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the DBE for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. 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. Page 18 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **3. Income from donations and legacies** |**Unrestricted**
**funds**
**2022**
**£000**
**Grants**
Grants from Coventry Diocesan Board of Finance Limited
159
Allchurches Trust
-
Culham St Gabriel
-
159
Donations
5
Grants
-
**Subtotal**
5
**Total 2022**
164
_Unrestricted_
_funds_
_2021_
_£000_
**Grants**
Grants from Coventry Diocesan Board of Finance Limited
_160_
Allchurches Trust
_-_
Culham St Gabriel
_-_
_160_
_Total 2021_
_160_|**Restricted**
**funds**
**2022**
**£000**
-
-
10
10
-
36
36
46
_Restricted_
_funds_
_2021_
_£000_
_-_
_10_
_3_
_13_
_13_|**Total**
**funds**
**2022**
**£000**
**159**
**-**
**10**| |---|---|---| |||**169**| |||**5**
**36**| |||**41**| |||| |||**210**| |||_Total_
_funds_
_2021_
_£000_
_160_
_10_
_3_| |||_173_| |||| |||_173_| Page 19 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **4. Income from charitable activities** |Services to schools and academies
Other
**Total 2022**
Services to schools and academies
Other
_Total 2021_|**Unrestricted**
**funds**
**2022**
**£000**
75
-
75
_Unrestricted_
_funds_
_2021_
_Endowment_
_funds_
_2021_
_£000_
_£000_
_81_
_-_
_-_
_108_
_81_
_108_|**Total**
**funds**
**2022**
**£000**
**75**
**-**| |---|---|---| |||**75**| |||_Total_
_funds_
_2021_
_£000_
_81_
_108_| |||_189_| ## **5. Income from other trading activities Income from non charitable trading activities** |**Unrestricted**
**funds**
**2022**
**£000**
Accomodation charges
7
_Unrestricted_
_funds_
_2021_
_£000_
Accomodation charges
_17_|**Total**
**funds**
**2022**
**£000**
**7**| |---|---| ||_Total_
_funds_
_2021_
_£000_
_17_| Page 20 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **6. Investment income** |Rental income
Dividend income
Interest received
**Total 2022**
Rental income
Dividend income
_Total 2021_|**Restricted**
**funds**
**2022**
**£000**
9
195
3
207
_Restricted_
_funds_
_2021_
_£000_
_9_
_167_
_176_|**Total**
**funds**
**2022**
**£000**
**9**
**195**
**3**| |---|---|---| |||**207**| |||_Total_
_funds_
_2021_
_£000_
_9_
_167_| |||_176_| ## **7. Investment management costs** |**Unrestricted**
**funds**
**2022**
**£000**
Investment management costs
-
Accomodation costs
32
**Total 2022**
32|**Restricted**
**funds**
**2022**
**£000**
10
-
10|**Total**
**funds**
**2022**
**£000**
**10**
**32**| |---|---|---| |||**42**| Page 21 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **7. Investment management costs (continued)** |Investment management costs
Accomodation costs
_Total 2021_|_Unrestricted_
_funds_
_2021_
_£000_
_-_
_24_
_24_|_Restricted_
_funds_
_2021_
_£000_
_19_
_-_
_19_|_Total_
_funds_
_2021_
_£000_
_19_
_24_| |---|---|---|---| ||||_43_| ## **8. Analysis of expenditure on charitable activities** ## **Summary by fund type** |Services to schools and academies
Other
**Total 2022**
Services to schools and academies
Other
_Total 2021_|**Unrestricted**
**funds**
**2022**
**£000**
255
-
255
_Unrestricted_
_funds_
_2021_
_Restricted_
_funds_
_2021_
_£000_
_£000_
_197_
_153_
_-_
_162_
_197_
_315_|**Restricted**
**funds**
**2022**
**£000**
217
125
342
_Endowment_
_funds_
_2021_
_£000_
_3_
_-_
_3_|**Total**
**2022**
**£000**
**472**
**125**| |---|---|---|---| ||||**597**| ||||_Total_
_2021_
_£000_
_353_
_162_| ||||_515_| Page 22 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **8. Analysis of expenditure on charitable activities (continued)** ## **Summary by expenditure type** |Services to schools and academies
Other
**Total 2022**
Services to schools and academies
Other
_Total 2021_|**Staff costs**
**2022**
**£000**
247
-
247
_Staff costs_
_2021_
_£000_
_248_
_-_
_248_|**Other costs**
**2022**
**£000**
225
125
350
_Other costs_
_2021_
_£000_
_105_
_162_
_267_|**Total**
**2022**
**£000**
**472**
**125**| |---|---|---|---| ||||**597**| ||||_Total_
_2021_
_£000_
_353_
_162_| ||||_515_| ## **9. Analysis of expenditure by activities** |Services to schools and academies
Other
**Total 2022**|**Purchased**
**services**
**and**
**materials**
**2022**
**£000**
305
125
430|**Support**
**costs**
**2022**
**£000**
167
-
167|**Total**
**funds**
**2022**
**£000**
**472**
**125**| |---|---|---|---| ||||**597**| Page 23 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **9. Analysis of expenditure by activities (continued)** |Services to schools and academies
Other
_Total 2021_|_Activities_
_undertaken_
_directly_
_2021_
_£000_
_304_
_127_
_431_|_Support_
_costs_
_2021_
_£000_
_49_
_35_
_84_|_Total_
_funds_
_2021_
_£000_
_353_
_162_| |---|---|---|---| ||||_515_| ## **Analysis of support costs** Governance costs includes external audit fees of £13,000 _(2021 - £6,000)_ and legal and professional fees £6,000 _(2021 - £2,000)_ . ## **10. Auditor's remuneration** |Fees payable to the DBE's auditor for the audit of the DBE's annual
accounts
Fees payable to the DBE's auditor in respect of:
All non-audit services not included above
**Staff costs**
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2022**
**£000**
**8**
**2**
**2022**
**£000**
**209**
**17**
**21**
**247**|_2021_
_£000_
_6_
_-_| |---|---|---| |||_2021_
_£000_
_215_
_14_
_19_| |||| |||_248_| ## **11. Staff costs** Page 24 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **11. Staff costs (continued)** The average number of persons employed by the DBE during the year was as follows: |Administration and support
The average headcount expressed as full-time equivalents was:
Administration and support|**2022**
**No.**
**6**
**2022**
**No.**
**5**|_2021_
_No._
_9_| |---|---|---| |||_2021_
_No._
_5_| The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |||**2022**|_2021_| |---|---|---|---| |||**No.**|_No._| |In the band £70,001|- £80,000|**-**|_1_| |In the band £80,001|- £90,000|**1**|_-_| 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 pensions contributions was £88,933 _(2021 - £81,419)_ . ## **12. Trustees and volunteers** The DBE benefits from significant amounts fo time contributed by unpaid DBE members (who are also trustees) and other volunteers by their attendance at meetings and contribution to the strategic devleopment of the DBE. The value of this time cannot be quantified and recognised in the financial statements of the DBE. Page 25 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **13. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ . During the year ended 31 December 2022, expenses totalling _£_ 153 were reimbursed or paid directly to 5 Trustees _(2021 - £NIL to_ any _Trustee)_ . These expenses relates to claims made by trustees for attending DBE meetings. ## **14. Tangible fixed assets** |**Cost or valuation**
At 1 January 2022
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for the year
At 31 December 2022
**Net book value**
At 31 December 2022
_At 31 December 2021_|**Freehold**
**land &**
**buildings**
**£000**
**410**
**410**
**48**
**5**
**53**
**357**
_362_|**Office**
**equipment**
**£000**
**33**
**33**
**26**
**4**
**30**
**3**
_7_|**Total**
**£000**
**443**| |---|---|---|---| ||||**443**| ||||**74**
**9**| ||||**83**| ||||**360**| ||||_369_| All tangible fixed assets were used for direct charitable purposes. Freehold land & buildings includes land of £153,000. Page 26 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **15. Fixed asset investments** |**Cost or valuation**
At 1 January 2022
Additions
Disposals
Losses
At 31 December 2022
**Net book value**
At 31 December 2022
_At 31 December 2021_|**Listed**
**investments**
**£000**
**2,692**
**-**
**(2,692)**
**-**
**-**
**-**
_2,692_|**Unlisted**
**investments**
**£000**
**3,713**
**2,918**
**-**
**(742)**
**5,889**
**5,889**
_3,713_|**Total**
**£000**
**6,405**
**2,918**
**(2,692)**
**(742)**| |---|---|---|---| ||||**5,889**| ||||**5,889**| ||||_6,405_| Investments are held primarily to provide an investment return. Listed investments consist of a portfolio managed by Brewin Dolphin Ltd investment managers. Unlisted investment consist of holdings in CBF Church of England Common Investment Funds managed by CCLA Investment Managers Ltd. ## **16. Debtors** |**Due within one year**
Trade debtors
Prepayments and accrued income|**2022**
**£000**
**64**
**49**
**113**|_2021_
_£000_
_36_
_176_
_212_| |---|---|---| ## **17. Cash at bank and in hand** Cash and cash equivalents include short term deposits of £431,000 _(2021 - £664,000)_ and cash balances held as agent on behalf of Diocesan schools of £373,000 _(2021 - £530,000)_ . Page 27 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **18. Creditors: Amounts falling due within one year** |Trade creditors
Other taxation and social security
Pension contributions
Accruals and deferred income
Balances held as agent on behalf of Diocesan schools|**2022**
**£000**
**25**
**9**
**5**
**41**
**373**
**453**|_2021_
_£000_
_71_
_-_
_2_
_47_
_530_| |---|---|---| |||| |||_650_| ## **19. Financial instruments** ||**2022**|_2021_| |---|---|---| ||**£000**|_£000_| |**Financial assets**||| |Financial assets measured at fair value through income and expenditure|**5,889**|_6,405_| Financial assets measured at fair value through income and expenditure comprise listed and unlisted investments. Page 28 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **20. Statement of funds** ## **Statement of funds - current year** |**Unrestricted**
**funds**
**Designated**
**funds**
Lucy Price Fund
**General funds**
General Fund
**Total**
**Unrestricted**
**funds**
**Endowment**
**funds**
s.554 Trust
Capital Fund
**Restricted**
**funds**
The Beacon
Fund
Cullham St
Gabriel Grant
s.554 Trust
Income Fund
REC Worldwide
**Total of funds**|**Balance at 1**
**January**
**2022**
**£000**
**419**
**405**
**824**
**6,811**
**-**
**3**
**192**
**-**
**195**
**7,830**|**Income**
**£000**
**-**
**246**
**246**
**-**
**35**
**10**
**203**
**5**
**253**
**499**|**Expenditure**
**£000**
**-**
**(287)**
**(287)**
**-**
**(125)**
**(9)**
**(217)**
**(1)**
**(352)**
**(639)**|**Transfers**
**in/out**
**£000**
**(153)**
**63**
**(90)**
**-**
**90**
**-**
**-**
**-**
**90**
**-**|**Gains/**
**(Losses)**
**£000**
**-**
**-**
**-**
**(742)**
**-**
**-**
**-**
**-**
**-**
**(742)**|**Balance at**
**31**
**December**
**2022**
**£000**
**266**| |---|---|---|---|---|---|---| |||||||**427**| |||||||**693**| |||||||**6,069**| |||||||**-**
**4**
**178**
**4**| |||||||**186**| |||||||**6,948**| Page 29 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **20. Statement of funds (continued)** ## **Description 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 teachers' 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 ## **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 1 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). Page 30 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **20. Statement of funds (continued)** ## **REC Worldwide** Jennifer Jenkins, RE and Spirituality Officer, has been selected by the Religious Education Council to lead one of three teams set up to create a framework and exemplary units to exemplify best practice in Religion and Worldviews in Religious Education. This is a project of national significance as it will inform the way that religious education is taught in the context of worldviews, a paradigm change in the way religious education is taught. Jennifer’s team is focusing on the theme of reconciliation, which lies at the heart of the mission of the Coventry Diocese. ## **General Fund** Unrestricted funds that are not held for any specific purpose are held in the General Fund. Page 31 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **20. Statement of funds (continued)** ## **Statement of funds - prior year** |**Unrestricted**
**funds**
**Designated**
**funds**
Lucy Price Fund
**General funds**
General Fund
**Total**
**Unrestricted**
**funds**
**Endowment**
**funds**
s.554 Trust
Capital Fund
**Restricted**
**funds**
The Beacon
Fund
Cullham St
Gabriel Grant
s.554 Trust
Income Fund
**Total of funds**|_Balance at_
_1 January_
_2021_
_£000_
_481_
_401_
_882_
_5,875_
_35_
_-_
_194_
_229_
_6,986_|_Income_
_£000_
_-_
_258_
_258_
_108_
_10_
_3_
_176_
_189_
_555_|_Expenditure_
_£000_
_-_
_(221)_
_(221)_
_(3)_
_(107)_
_-_
_(227)_
_(334)_
_(558)_|_Transfers_
_in/out_
_£000_
_(62)_
_(33)_
_(95)_
_(16)_
_62_
_-_
_49_
_111_
_-_|_Gains/_
_(Losses)_
_£000_
_-_
_-_
_-_
_847_
_-_
_-_
_-_
_-_
_847_|_Balance at_
_31_
_December_
_2021_
_£000_
_419_| |---|---|---|---|---|---|---| |||||||_405_| |||||||_824_| |||||||_6,811_| |||||||_-_
_3_
_192_| |||||||_195_| |||||||_7,830_| Page 32 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **21. Summary of funds** ## **Summary of funds - current year** |Designated
funds
General funds
Endowment
funds
Restricted funds|**Balance at 1**
**January**
**2022**
**£000**
**419**
**405**
**6,811**
**195**
**7,830**|**Income**
**£000**
**-**
**246**
**-**
**253**
**499**|**Expenditure**
**£000**
**-**
**(287)**
**-**
**(352)**
**(639)**|**Transfers**
**in/out**
**£000**
**(153)**
**63**
**-**
**90**
**-**|**Gains/**
**(Losses)**
**£000**
**-**
**-**
**(742)**
**-**
**(742)**|**Balance at**
**31**
**December**
**2022**
**£000**
**266**
**427**
**6,069**
**186**| |---|---|---|---|---|---|---| |||||||**6,948**| |||||||| |**Summary of funds - prior year**||||||| |Designated
funds
General funds
Endowment
funds
Restricted funds|_Balance at_
_1 January_
_2021_
_£000_
_481_
_401_
_5,875_
_229_
_6,986_|_Income_
_£000_
_-_
_258_
_108_
_189_
_555_|_Expenditure_
_£000_
_-_
_(221)_
_(3)_
_(334)_
_(558)_|_Transfers_
_in/out_
_£000_
_(62)_
_(33)_
_(16)_
_111_
_-_|_Gains/_
_(Losses)_
_£000_
_-_
_-_
_847_
_-_
_847_|_Balance at_
_31_
_December_
_2021_
_£000_
_419_
_405_
_6,811_
_195_| |---|---|---|---|---|---|---| |||||||_7,830_| Page 33 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **22. Analysis of net assets between funds** ## **Analysis of net assets between funds - current year** |**Unrestricted**
**funds**
**2022**
**£000**
Tangible fixed assets
1
Fixed asset investments
-
Current assets
1,145
Creditors due within one year
(453)
**Total**
693
**Analysis of net assets between funds - prior year**
_Unrestricted_
_funds_
_2021_
_£000_
Tangible fixed assets
_7_
Fixed asset investments
_-_
Current assets
_1,467_
Creditors due within one year
_(650)_
**Total**
_824_|**Restricted**
**funds**
**2022**
**£000**
179
-
7
-
186
_Restricted_
_funds_
_2021_
_£000_
_192_
_-_
_3_
_-_
_195_|**Endowment**
**funds**
**2022**
**£000**
180
5,889
-
-
6,069
_Endowment_
_funds_
_2021_
_£000_
_170_
_6,405_
_236_
_-_
_6,811_|**Total**
**funds**
**2022**
**£000**
**360**
**5,889**
**1,152**
**(453)**
**6,948**
_Total_
_funds_
_2021_
_£000_
_369_
_6,405_
_1,706_
_(650)_
_7,830_| |---|---|---|---| |**Analysis of net assets between funds - prior**|||| |Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|||| Page 34 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **23. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income/expenditure for the year (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Decrease in creditors
**Net cash used in operating activities**
**24.**
**Analysis of cash and cash equivalents**
Cash in hand
Notice deposits (less than 3 months)
**Total cash and cash equivalents**
**25.**
**Analysis of changes in net debt**|**2022**
**£000**
**(882)**
**9**
**742**
**(207)**
**99**
**(197)**
**(436)**
**2022**
**£000**
**608**
**431**
**1,039**|_2021_
_£000_
_844_
_9_
_(847)_
_(176)_
_(112)_
_(81)_
_(363)_
_2021_
_£000_
_830_
_664_
_1,494_| |---|---|---| |Cash at bank and in hand
Debt due within 1 year|**At 1**
**January**
**2022**
**£000**
**1,494**
**(2)**
**1,492**|**Cash flows**
**£000**
**(455)**
**(3)**
**(458)**|**At 31**
**December**
**2022**
**£000**
**1,039**
**(5)**
**1,034**| |---|---|---|---| Page 35 ## **COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **26. Pension commitments** The DBE participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers. CWPF has two sections: 1. the Defined Benefits Scheme 2. the Pension Builder Scheme, which has two subsections: - a deferred annuity section known as Pension Builder Classic, and, - a cash balance section known as Pension Builder 2014. ## Pension Builder Scheme Both sections of the Pension Builder Scheme are classed as defined benefit schemes. Pension Builder Classic provides a pension, 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. Discretionary increases may also be added, depending on investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. 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 are the contributions payable (2022: 21,000, 2021: £22,000). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m 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 the failed employer's pension liabilities. Page 36 ## **COVENTRY DIOCESAN BOARD OF EDUCATION** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **27. Operating lease commitments** At 31 December 2022 the DBE had commitments to make future minimum lease payments under noncancellable operating leases as follows: |Not later than 1 year
Later than 1 year and not later than 5 years|**2022**
**£000**
**3**
**4**
**7**|_2021_
_£000_
_3_
_6_| |---|---|---| |||| |||_9_| The following lease payments have been recognised as an expense in the Statement of financial activities: ||**2022**|_2021_| |---|---|---| ||**£000**|_£000_| |Operating lease rentals|**2**|_2_| ## **28. Related party transactions** Coventry Diocesan Board of Finance Ltd (CDBF) provided the DBE with grants of £159,000 (2021: £159,500) in the year towards the costs of the DBE’s charitable activities including its statutory obligations. The amount owing to the CDBF at 31 December 2022 in relation to transactions between the two parties was £0 (2021: £0). The DBE provided clerking services to various committees for the CDBF and Coventry Cathedral which were billed to the CDBF during the year and also paid for costs relating to the Archbishop of York’s Youth Trust Young Leaders Programme which were recharged to the Growing Faith budget of the CDBF. The amount owing to the DBE at 31 December 2022 in relation to transactions between the two parties was £3,414 (2021: £3,912). The DBE provided the DMAT with invoiced services totalling £13,468 in the year (2021: £22,520) with no profit element. The amount owed to the DBE at 31 December 2022 in relation to transactions between the two parties was £1,590 (2021: £1,670). 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. Page 37