Reglstered number: 3663851 Charlty number: 1091145 COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) CONTENTS Page Reference and admlnlstratlve detalls of the DBE. Its Trustees and advlsers Trusteès, report Independent auditor's report on the financlal statements Statement of financlal actlvltles 9-12 13 Balance sheet 14 Statement of Cash flows 15 Notes to the financlal ststements 16-37
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE DBE, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Mr Roderick Clark, Elected Mr Michael Draper, Acting Chair (from 19 September 2023), Bishop's nomine8 Mrs Emma Griffiths, Elected Mrs Sybil Hanson, Co-opted Ms Sharon Jones, Elected Mrs Claire Russell, Elected Rev'd Diane Thompson, Elected Mr Adam Walsh, Co-opted Mrs Lindsey Wright, Co-opted Right Rev'd Ruth Worsley, Acting Bishop of Coventry, Ex officio Mr Chrislopher Edwards, Bishop's nominee (resigned 18 September 2023) Bishop of Coventry.. The Rt Revd Dr Christopher Cocksworth, Ex officio (resigned 15 December 20231 The Ven Bary John Dugmore, Bishop's nominee (appointed 2 October 2023) Rev'd Tlmothy Cockell, Bishop's nominee (appointed 2 October 20231 Company reglstered number 3663851 Charlty reglstered number 1091145 Reglstered offlce The Benn Education Centre Craven Road Rugby Waickshire CV213JZ Company secretary Rev'd April Gold Independent audltor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury Wesl Midlands B69 2DG Page 1
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. who are also directors for the purposes of company law. present their combined trustees. and direclors. report for Covenlry Diocesan Board of Education ('the DBE"), together with the audited financial statements, for the year ended 31 December 2023. Under the Diocesan Boards of Education Measure 2021, each diocese is r8quired 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. ObJectlve5 and actlvltles 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 eclucation and religious worshlp in schools In the dioces8; promote or assist in the promotion of church schools in the diocese: promote ctroperation 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 ar@ 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 wlth 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 8cademies 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 Twst, previously a number of separate uniform statutory trusts, united into a single (registered charity) trust. The funds in this trust have arlsen from the retum to the Church of England of its deemed share of the proceeds from the sale of fomier 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 slill 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 Ihe charity should undertake. The trustees, vision to support schools to achieve demonstrable Christian distinctiveness in 8very aspect of the educational experience is based on Jesus, words from Matlhew 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 Page 2
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities (contlnuedl good for anhing, except to be thrown out and trampled underfoot. "You are Ihe light of th8 world. A town built on a hill cannot be hidden. Neither do people light a lamp and put it under a bowl. Inst&ad 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. Current strateglc objectlves Include Facilitating partnerships between schools and parishes to worship God incamationally. 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, Dignlty and Community. Schools develop a aY 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 aspiratlon. 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 developlng courag8ous advocacy and leadership skills. Achlevemenls and performance a. Achievement5 With the prlnclpal actlvltles The DBE provides support to all Church of England schools and academies in the Diocese in accordance with ils statutory obligations and receives a core grant from the Dio¢esan Board of Finance towards these costs. Additional services are provided through a Diocesan Service Agreement. In the academic year 22123 all schools signad up to the DSA with 75176 signing up in 23124. We have continued 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 November. This conference focussed upon the Growing Faith Agenda and how schools and parishes working together can ensure that we uphold the Christian Foundations of our schools whilst meeting the needs of the least and the lost. We also considered the National Society's document "Our Hope for a Flourishing Schools System. reminding govemors that together we represent the system and have collective responsibility to ensure that ALL children in the Diocese are in a nurturing school which supports the development of the whole child. At our Head Teacher Conference in June we focussed upon the role of twst in leadership and equipped Heads with some techniques for effective team collaboration and self reflection. In September 2023 the Beacon project concluded its work and Sussex University reported their findings of the impact of the pilot. The Evaluation report demonstrates that the project builds an ethic of relatedness of care both within the staff group, between the staff and children but also beeen the school and parents. The refleclive practice and supervision elements of the project improved staff self-awareness and wellbeing enabling vulnerable children and families to be supported by the whole school. The added capacity of a Family Link Page 3
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance (contlnued) Worker ensured that strong relationships were built between the school and vulnerable famiSies and that these families felt they had a single point of call who advocated for them and with them. The project will continue with a small MAT lrialling the approach across their family of schools and one school sharing its student and stsff wellbeing model across other schools Sn the Diocese. During 2022123 it became even more apparent that the increasing SEND needs in our schools is placing pressure on families and school communities. Combined with limited funding and a lack of access to specialist support staff such as Educational Psychologists and specialist TAS our schoo15 are reporting an emerging crisis. During 23124 the D8E 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, and how it can support the provision of specialist educational communities to meet the needs of those who can't be educated in their local school. In June 2023 the DBE hosted ALIVE 2023 a Praise Party and Plcnlc for 9,000 Key Stage 2 children and staff al NAEC Stoneleigh. The event was a huge success and we successfully commissioned 8,000 World Changers. Following the event in June 2023 the DBE has continued to work with schools and parishes to further develop the school and church link and a number of new after school events have started. Thes8 are varied and represent the gifts and talents of local schools and parishes with a flourishing World Changers Club at St Johns CofE Academy in Coventry, a Parent Alive Breakfast in Hatton, "Hive Alive" family weekend events in CV4 and a Soul Chlldren Choir in Walsgrave St Mary's. The DBE is keeping the party going through a Diocesan Partnership with i-sing-pop in 2024 and a bid to the national Church Commissioners for funding to plant 5 Flourish Church in schools worshipping communities. SIAMS inspections were carried out in 15 schools. 5 achieved Excellent Outcomes and 8 Good outcomes uncler the old framework. 2 schools were inspected under the new framework and were confirmed to be living up to their foundation as Church Schools. We continue to have no schools who are graded as requires improvement or inadequate and it is heartening to read how well our schools have thought through their contextual Christian vision and are using it to drive all of their work. OFSTED vlsited 22 schools during 2023 with 19 recelving a 'Good' classlfication, 4 of these making progress from a previously requires improvement judgement. Two schools received a requires improvement classification, one for the second time which has resulted In a Direct Academy Order and one school received a serious weaknesses classification also triggering a Direct Academy Order. The DBE continues to work with Local Authorities, Multi Academy Tnjsts and the Department for Education to ensure that schools have appropriate school improvement 5UPPOrt when needed. Overall, Diocesan schools are 90Y. Good or better in terms of OFSTED grades compared to a national picture of 880/0. 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. Four schools became academies during 2023. Through activities which promote and assist education in the diocese, consistent with the falth and practice of the Church of England, the trustees are confident that a significant benefit has been delivered for a significant sectlon of the public- our children and young people. b. Volunteers These activities and achievements depend upon significant amounts of time contributed by 12 unpaid DBE members. 16 Members and 44 Directors of the 6 DBE controlled Multi Academy Trusts. alongside 233 foundation govemors 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 stslements of the DBE. but it is not forgotten and is of huge benefit. Page 4
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achlevements and performanc8 (continued) Financial review Totsl income in th8 y8ar was £621,000 (2022: £499,000). Grants from Coventry Diocesan Board of Finance Included in this figure amount8d to £160,000 (2022:£159,000). After expenditure and gains on investments the net income for the year was a surplus of £602,000 (2022: deficit of £882,000). The net income on unrestricted operalions was a surplus of £18,00012022.'deficit of £41,000). Investments The DBE'S investment policy as trustee of the s.554 Trust is to safeguard capltal values of Investments In real terms over the long term and lo produce real growth in net investment income, whilst complying with the Church of England Ethical Inveslmenl Policy. Investments are principally held in Iwo 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 2023 was £6.6 million (2022.. £5.9 million). The Trustees decided to consolidate all their investments with CCLA Investment Management Limited, to ensure compliance with the r8quirements 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 pollcy Reserves held in restricted or designated funds are held for the purpose of those funds, as described in nole 21 to the financial statements. Free reserves are held in the DBE'S General Fund. The trustees, reserves policy is lo ensure the provision of adequate financial resources in an environment of constant change and increasing challenge, wilhout having to make sudden increases in charges for seNices. The policy is therefore for General Fund reserves not he5d in fixed assets to be within a wide range of between three and twelve months. worth of the year's lotal resources expended. General Fund reserves not held in fix8d assets at 31 December 2023 were £658.000 {2022: £693,000), amounting to 12 months (2022.12 months) of the total resources expended in the year, whlch was therefore within the policy range. Plans for future periods The DBE plans to continue and to exlend its existing activities, and in particular- 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. to work wlth the six CofE majority MATS in the Diocese, maintained schools, local authorities and the DFE Regional Director to develop a pipeline of conversions so that every school is in a strong MAT by September 2030. Page 5
COVENTRY DIOCESAN BOARD OF EDUCATION {A company limited by guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 d) to support schools who remain in the maintained sector to secure school improvement and financSal support from their LA., to support opportunities for growth. both at existing schools and on new houslng developments. to support schools in focusing upon Improvlng educational provision for children with sp8cial educational and Social Emotional and Mental Health Needs in partnershlp with the local church withln the communlty; g) to ensure that these actlvities are financed sustainablywhilst keeping the General Fund reserves in line with the reserves policy. 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 Govemance and management The DBE operates in accordanc8 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 limlted lo £1 under thelr 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 2023 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. Induclion of new members is carried out by providing them with a summary of their responsibilities and other briefing material on appointment. 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 ar8 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 Blshop of Coventry. The Dlocesan Dlrector of Educatlon 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 andlor political pressure on schools, budgets threatening their ability to provide quality worship and RE teaching. insufficient suitably skilled and experienced people to fill foundation govemor 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 soSe {corporate) Iwstee 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 aGtivities, subject to uses in accordance with section 554 of Ihe 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 2023 Related Partles The s.554 Trust is related to the DBE by virtue of the DBE being its corporate trustee and applwng 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 Trusl, although not owned by the DBE in its own right, are included with the financial slalements of the DBE. Statement of Trustees, responsibilities The Trustees (who are also the directors of the DBE for th8 purposes of company law) are responsible for preparing the Trustees, report and the directors, report and the financial slatemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial slatements 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: select suitable accounting policies and then apply them conslstently., observe the methods and principles of the Charities SORP. make jud9emenls and accounting estimates that are reasonable and prudent. stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and 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 al any time the financial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are responsible for safegu8rdin9 Ihe assets of the charitable company and hence for taking reasonable steps for the prevention and delection 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 websile. Legislation in the United Kingdom goveming the preparation and dissemination of financial statement may differ from 5egislation in other jurisdictions. Dlsclosure of Inforniatlon to audltor 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 truslees and directors in order to make themselve5 aware of any relevant audil information and to establish that it has been communicated to the auditor. Page 7
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limlted by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Audltor The audit went to tender and Crowe were reappointed in 2023. 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. Approved f the members of the board of Trustees and signed on their behalf by: Mr Michael Draper (Chair of Trustees) Date: 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 Oplnlon We have audited the financial statements of Coventry Diocesan Board of Education for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statemenl 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 Uniled 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 stalements: glve a true and fair view of the state of the charitable companls affairs as at 31 December 2023 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. Basls for oplnlon We conducted our audlt In accordance with Inlemational Standards on Auditing IUKI IISAS {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 Ihe Uniled 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. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financlal ststements is appropriate. Based on the work we have performed, we have not Identlfied 8ny materlal uncertaintles relating to events or condilions that, individually or collectively, may cast significant doubt on the charitable companls ability lo continue as a going concern for a period of at least e1ve 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 Ihis report. 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) Other Informatlon The other infomiation comprises the infomation 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 Ihe financial stalements does not cover the other information and, except to the extent olherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our spon5ibility 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 thems8lv8s. If, based on th8 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. Opinlon on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infonnation 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 whlch we aro requlred to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtained in the cours& of the audit, have nol id8nlif18d material misstatements in the Trustees, Report. We have nothing to report in respect of the followlng matters In relation to whlch CompanSes Act 2006 requIS us to report to you if, in our oplnlon: adequate accounting records have not been kept, or retums 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 retums; or certain disclosures of Trustees, remuneration specified by law are not made; or we have not received all the infomiation 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 Stralegic 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) Responslbilltles 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 slatemenls 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 thal are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable companys 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 81ther intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Audltor's responslblllties for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an Auditor's report Ihat 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, ar8 instances of non-compllance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of Irregularilies, including fraud. The extent to which our procedures are capable of detecting irregularlties, including fraud is detailed below.. We obtained an understanding of the legal and regulalory 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 stalemenls. 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 avold 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 oveIde 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 perfonnance 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. Page11
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COVENTRY DIOCESAN BOARD OF EDUCATION (CONTINUED) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a mat8rial mi55tatement In the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment. forgery, collusion, omission or misrepresentation. 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.or .uk18uditorsres onsibilities. This description fomis part of our Auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mighl state to the charitable company's members those matters we are required to state to them in an Auditorfs report and for no other purpose. To the fullest exient pemiitted 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 fomied. Helen Blundell LLB FCA FCIE DChA (Senlor statutory auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands 869 2DG Date.. Page 12
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 unstrIcted funds 2023 £000 Restricted Endowment funds funds 2023 2023 £000 £000 Total funds 2023 £000 Total funds 2022 £000 Note Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments 301 89 12 12 313 89 210 75 12 207 207 207 Total income and endowments 402 219 621 499 Expendlture on: Raising funds Charitable activities 38 346 38 658 42 597 312 Total expendlture 384 312 696 639 Net Incomel(expendlture) before net galnsl(losses) on Investments Net gainsl(losses) on Investments 18 (93) (75) (140) 677 677 (742) Net Incomel(expendlture) Transfers between funds 18 (93) 677 602 (882) 21 (53) (11) Net movement In funds (35) (29) 666 602 (882) Reconclllatlon of funds: Total funds brought foNard Net movement in funds 693 (35> 186 (29) 6,069 666 6,948 602 7,830 (882) Total funds carrled forward 658 157 6,735 7,550 6,948 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 13
COVENTRY DIOCESAN BOARD OF EDUCATION {A company limited by guarantee) REGISTERED NUMBER: 3663851 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 £000 2022 £000 Note Flxed assets Tanglble assets Investments 15 16 352 360 6,716 5.889 7,068 6,249 Current assets Debtors Cash at bank and In hand 17 93 1,064 113 1,039 Current Ilabllltles 1,157 1,152 Creditors: amounts falling due within one year 19 1675) (453) Net current assets 482 699 Total net assets 7,550 6,948 Charlty funds Endowment funds Restricted funds Unrestricted funds 21 21 21 6,735 157 658 6,069 186 693 Total funds 7,550 6,948 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 8uthorised for Issue by the Trustees and signed on their behalf by: per (Chair of Trustees) Date: ,) &2+ The notes on pages 16 to 37 form part of these financial statements. Page 14
COVENTRY DIOCESAN BOARD OF EDUCATION IA company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 £000 2022 £000 Note Cash flows from operatlng actlvltles Net cash used in operating aGiivities 24 (32) (436) Cash flows from Investlng activlties Dividends, interests and rents from Investments Proceeds from sale of investments Purchase of investments 207 207 2,692 (2,918) (150) Net cash provided byl(used in) Investlng activltles 57 {19) Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 25 (455) 1,494 1,039 Cash and cash equlvalents at the end of the year 25 1,064 1,039 The notes on pages 16 to 37 form part of these financial slatement8 Page 15
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General Informatlon The company Is a company limited by guarantee Iregislered number 3663851), which is incorporated and registered in England and Wales. Its charity reglstration 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. Accountlng pollcles 2.1 Basls of preparatlon of flnanclal statements The financial statements have been prepared in accordance with the Charities SORP (FRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Flnancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reportlng Standard applicable in the UK and Republic of Ireland (FRS 1021 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 al fair value at the balance sheet date. The trustees are satisfied Ihat 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 Actlvities 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 defeed where the event or period to which the income relates occurs beyond the end of the financial period being reported on. 2.3 Expendlture Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate similar costs under 8ach category of the Statement of Financial Activtt18S. Support costs conslst 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 contributions are payable. Page 16
COVENTRY DIOCESAN BOARD OF EDUCATION {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles (contlnued) 2.3 Expendlture (contlnued) Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support cosls which are not attributable to a single activity are apportioned between those aclivities on a basis consislent with th8 use of resources. Central staff costs are allocaled on the basis of time spent, and depreclation charges allocated on the portion of the asset's use. Expenditure on ralslng funds Includes all expendilure incurred by the DBE to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the DBE'S objectives, as well as any associated support costs. 2.4 Tanglble fixed assets and depreclatlon Tangible fixed assets costSng £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. Tan9ible 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 assel into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of langible fixed assets less their residual value over Iheir estimated useful lives. using the straight-line method. Depreci81ion is provided on the following bases: Freehold prop8rty Office equipment 50 years - 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 impaimient. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl{Losses) on investments, in the Statement of financial activities. 2.6 Debtors Debtors are measured at the transaction price less any impairment losses. Page 17
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles (contlnued) 2.7 Cash at bank and In hand Cash and cash equivalents include cash at bank and short temi 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 committing 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 co118Ction of grants from govemm8nt, 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 ported separately in the notes to the financial statements. 2.10 Fund accountlng General funds are unrestricted funds which are available for use at the discretion of th8 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. Restricled 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 th8 endowed funds into income, the funds are classed as expendable endowment. Crltl¢al accountlng estlmates and areas of Judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the rcumstances. Critical accounting estimates and assumptions: The DBE makes 8Stimat8s and assumptions conc8ming the future. Th8 resulting accounting estimat8S and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Page 18
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from donatlons and legacies Unrestricted Restricted funds funds 2023 2023 £000 £000 Total funds 2023 £000 Grants Grants from Coventry Diocesan Board of Finance Limited Alternative Provision 160 160 12 12 160 12 172 Donations 141 141 Subtotal 141 141 Total 2023 301 12 313 Unreslricted funds 2022 £000 Restricted funds 2022 £000 Total funds 2022 £000 Grants Grants from Coventry Diocesan Board of Finance Limited Allchurches Trust Culham St Gabriel 159 159 10 10 159 10 169 Donations Grants 36 36 Subtotal 36 41 Total 2022 164 46 210 Page 19
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarant88) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charitable actlvltles Unrestrlcted funds 2023 £000 Total funds 2023 £000 Services to schools and academies 89 89 Unrestricted funds 2022 Tot81 funds 2022 £000 Services to schools and acad8mies 75 75 Income from other tradlng actlvltles Income from non charltable tradlng a¢tlvltles Unrestrlcted funds 2023 £000 Total funds 2023 £000 Accommodation charges 12 12 Unreslricted funds 2022 £000 Total funds 2022 £000 Accommodation charges Page 20
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investment Income Restricted funds 2023 £000 Total funds 2023 £000 Rental income Dividend income Bank interest 196 196 Total 2023 207 207 Restricted funds 2022 £000 Tot81 funds 2022 £000 Rental income Dividend income Bank interest 195 195 Total 2022 207 207 Investment management costs Unrestricted funds 2023 £000 Total funds 2023 £000 Accommodation costs 38 38 Page 21
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investment management costs (contlnued) Unrestricted funds 2022 £000 Restricted funds 2022 £000 Total funds 2022 £000 Investment management costs Accommodation costs 10 10 32 32 Total 2022 32 10 42 Analysls of expendlture on charftsble a¢tlvltles Summary by fund type Unrestrlcted Restrlcted funds funds 2023 2023 £000 £000 Total 2023 £000 SeNlces to schools and academles Oth8r 346 236 76 582 76 Total 2023 346 312 658 Unrestricted funds 2022 £000 Restricted funds 2022 £000 Total 2022 £000 Services to schools and academies Other 255 217 125 472 125 Total 2022 255 342 597 Page 22
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysls of expenditure on charltable actlvlties (contlnued Summary by expendlture type Staff costs Other costs 2023 2023 £000 £000 Total 2023 £000 Services to schools and academies Other 281 301 76 582 76 Total 2023 281 377 658 Staff Gosts Other cos¢s 2022 2022 £000 £000 Total 2022 £000 Services to schools and 8cademies Other 247 225 125 472 125 To¢al 2022 247 350 597 10. Analysls of expendltur8 by actlvltles Purchased servlces and materlals 2023 £000 Support costs 2023 £000 Total funds 2023 £000 Services to schools and academies Other 339 76 243 582 76 Total 2023 415 243 6S8 Page 23
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 10. Analysls of expendlture by actlvltles (contlnued) Activities undertaken direGtIy 2022 £000 Support osts 2022 £000 Total funds 2022 £000 Services to schools and academies Other 305 125 167 472 125 Tolal 2022 430 167 597 Analysls of support CO8ts Govemance costs includes extemal audit fees of £9,000 (2022 - £10,000) and legal and professional fees £nil {2022 - £6,000). 11. Audltorfs remuneratlon 2023 £000 2022 Fees payabl8 to the DBE'S auditor for th8 audit of the DBE'S annual accounts Fees p8yable to the DBE'S 8udilor in respect of.. All non-audit services not included above 12. Staff costs 2023 £000 2022 £000 Wages and s81aries Social security costs Contribution to defined contribution pension schemes 236 21 24 209 17 21 281 247 Page 24
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. Staff costs (contlnued) The average number of persons employed by the DBE during the year was as follows.. 2023 2022 Administration and support The average headcount expressed as full-time equivalents was: 2023 2022 No. Administration and support The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2023 No. 2022 No. In the band £80,001- £90,000 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 insuranc@ and pensions contributions was £100,521 (2022 - £88,933). 13. 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. Page 25
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Trustoes. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2022 - £NIL). During the year ended 31 December 2023, expenses totaling £24 were reimbursed or paid directly to 1 Trustee (2022 £153 to 5 Trustees). These expenses relates to claims made by trustees for attending DBE meetings. 15. Tangible fixed assets Freehold land & buildings £000 Office equlpment £000 Total £000 Cost or valuatlon At 1 January 2023 410 33 443 At 31 D8cember 2023 410 33 443 Depreclatlon At 1 January 2023 Charge for the year 53 30 83 At 31 December 2023 58 33 91 Not book value At 31 December 2023 352 352 At 31 December 2022 357 360 All tangible fixed assets were used for direct charitable purposes. Freehold land & buildings includes land of £153,000 which is not depreciated. Page 26
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Flxed asset Investments Unlisted Investments £000 Cost or valuation At 1 January 2023 Additions Gains 5,889 150 677 At 31 December 2023 6,716 Investments are held primarily to provide an investment return. Unlisted investment conslst of holdings In CBF Church of England Common Investment Funds managed by CCLA Investment Managers Ltd. 17. Debtors 2023 £000 2022 £000 Due wlthln one year Trade debtors Prepayments and accrued income 29 64 64 49 93 113 18. Cash at bank and In hand Cash and cash equivalents include short term deposits of £281,000 (2022 - £431,000) and cash balances held as agent on behalf of Diocesan schools of £338,000 (2022- £373,000). Page 27
COVENTRY DIOCESAN BOARD OF EDUCATION {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. Credltors: Amounts falllng due wlthln one year 2023 £000 2022 Trade creditors Other taxation and social security Pension contributions Accruals and deferred income 270 13 25 51 338 41 373 Balances held as agent on behalf of Diocesan schools 675 453 20. Flnancial Instruments 2023 £000 2022 Flnanclal assets Financial assets measured at falr value through Income and expenditure 6,716 5,889 Financial assets measured at fair value through Income and expenditure compris8 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 2023
21. Statement of funds
Statement of funds - current year
Balance at
31
Galnsl December
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 21. Statement of funds (continued) Descriptlon of Funds: .554 Trust Capital Fund - Expendable Endowment The s.554 Trust Capital Fund consists of the funds and propety 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 unifomi 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 unifomi statutory trusts as a slngle 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 th8 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 teacherfs house for use in connection with any Church of England school in the Diocese of Coventry .554 Trust Income Fund - Restrlcted This fund has arisen from income from the assets of the Uniform Statutory Twsts 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. Ic) the provision of services for the carrwng 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 connectSon with the appllcatlon of the s.554 Trust Income or Capital Funds. The Beacon Fund - Restricted The Beacon Project has been estsblished 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 ISEMH). 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 Prfce Fund - Deslgnated This fund was 8Stablished when th8 Lucy Price Wasperton Estate Charity made a donation to th8 DBE of £515.000 upon its winding up and realisation of its assets in 2018. The twstees 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 altemative 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 2023 21. Statement of funds Icontlnued) 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 creale a framework and exemplary units lo exemplify best practice in Religion and Worldviews in Religious Education. This is a project of national significance as it will infomi the way that religious education is taught in Ihe 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 Unr8stricted 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 2023 21. Statement of funds (Contlnued) Statement of funds - prlor year BalanGe al 31 December 2022 £000 Balan al 7 January 2022 Transfers in/out G8ins/ (Losses) £000 Income Expenditur8 £000 £000 Unrestrlcted funds Deslgnated funds Lucy Price Fund 419 (153) 266 General funds General Funds- all funds 405 246 (287) 63 427 Total Unrestricted funds 824 246 (287) (90) 693 Endowment funds s.554 Trust Capital Fund 6.811 (742) 6,069 Restrlcted funds The Beacon Fund 35 (125) 90 Cullham St Gabriel Grant s.554 Trust Income Fund REC Worfdwide 10 (9) 192 203 {217) (1) 178 195 253 (352) 90 186 Total of funds 7. 830 499 (639) (742) 6,948 Page 32
COVENTRY DIOCESAN BOARD OF EDUCATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. Summary of funds Summary of funds - current year Balance at 31 Galnsl December (Losses) 2023 £000 £000 Balance at 1 January 2023 £000 Transfers inlout £000 Income Expenditure £000 £000 Designated funds General funds Endowment funds Restricted funds 266 427 (64) 11 202 456 402 (384) 6,069 186 (11) 677 6,735 157 219 (312) 6,948 621 (696) 677 7,550 Summary of funds - prlor year Balance 8t 31 December 2022 £000 881ance al 1 January 2022 £000 Transfers in/oul £000 Gains/ (Losses) £000 Income Expenditure £000 £000 Designated funds General funds Endowment funds Restricted funds 419 405 (153) 63 266 427 246 (287) 6,811 195 (742) 6,069 186 253 (352) 90 7,830 499 (639) (742) 6,948 Page 33
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 23. Analysls of net assets between funds Analysls of net assets between funds - current year Unrestricted Restricted Endowment funds funds funds 2023 2023 2023 £000 £000 £000 Total funds 2023 £000 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 183 169 6.566 352 150 1,183 (675) 6,716 1,157 (675) (26) Total 658 157 6,735 7,550 Analysls of net assets between fundg - prlor year Unrestricted funds 2022 £000 Restricted Endowment funds funds 2022 2022 £000 Total funds 2022 £000 Tangible fixed assets Fixed ass8t investments Current assets Creditors due within one year 179 180 5,889 360 5,889 1,152 (453) 1, 145 (453) Total 693 186 6.069 6,948 Page 34
COVENTRY DIOCESAN BOARD OF EDUCATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 24. Reconclliatlon of net movement In funds to net cash flow from operatlng actlvltles 2023 £000 2022 £000 Net incomelexpenditure for the year (as per Statement of Financial Activities) 602 (882) Adjustments for: Depreciation charges ILosses)IGain on investments Dividends, interests and rents from investments Decrease in debtors Increasel(decrease) in creditors {677) <207) 20 742 (207) 99 222 (197) Net cash u88d In operatlng actlvltles (32 {436) 25. Analysls of cash and cash equlvalents 2023 £000 783 2022 £000 608 Cash in hand Notice deposits (less than 3 months) 281 431 Total cash and cash equlvalents 1,064 1,039 26. Analysls of changes In net debt At1 January 2023 Cash flows £000 At31 December 2023 £000 £000 1,039 (5) Cash at bank and in hand Debt due within 1 year 25 1,064 (3) 1,034 27 1,061 Page 35
COVENTRY DIOCESAN BOARD OF EDUCATION (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 27. Penslon commltments 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 tsvo sections: the Defined Benefits Scheme the Pension Builder Scheme, which has subsections: deferred annuity section known as Pension Builder Classic, and, a cash balance section known as Penslon Bullder 2014. Pension Builder Scheme Both sections of the Pension Builder Scheme ar8 classed as defined benefit schemes. Pension Builder Classic provides 8 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 retums and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits 8t 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 beeen employers In each sectlon 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 nexi 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 3Yo 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 Ihe failed employerfs 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 2023 28. Operating lease commltments At 31 December 2023 the DBE had commitments to make future minimum lease payments under non- cancellable operating leases as follows: 2023 £000 2022 £000 Not later than 1 year Later than 1 year and not later than 5 years The following lease payTnents have been recognised as an expense in the Statement of financial activlties- 2023 £000 2022 £000 Operating lease rentals 29. Related party transactlons Coventry Diocesan Board of Finance Ltd {CDBF) provided the DBE with grants of £160,000 (2022.. £159,000) in the year towards the costs of the DBE'S charitable activities including its statutory obligations. The amount owing to Ihe CDBF at 31 December 2023 in relation to transactions between the o parties was £1,00412022: £0). The DBE provided no seNices to the CDBF and Coventry Cathedral and as such the amount owing to the DBE at 31 December 2023 was £nil (2022: £3,414). The DBE provided the Coventry Diocesan Multi Academy Trust (DMAT) with invoiced services totalling £15,601 in the year (2022: £13,468) with no profit element. The amount owed to the DBE at 31 December 2023 in relation to transactions between the two parties was £nil (2022.. £1,590). 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 Ihe s.554 Trust, although not owned by Ihe DBE in its own right, are included with the financial statements of the DBE. Page 37