# **THE REPRESENTATIVE BODY OF THE CHURCH IN WALES Annual Report and Accounts 2025**
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Contents Click
Chair’s Introduction 01
Trustees’ Report 02
Independent Auditors’ Report 26
Statement of Financial Activities 29
Balance Sheet 30
Cash Flow Statement 31
Notes to the Accounts 32
To return to this page, click the page header
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## **Front cover photographs:**
_top left: Archbishop Cherry’s enthronement at Newport Cathedral, 8[th] November. bottom left: Bishop Dorrien at St Non’s Well, St Davids on St Davids Day, 1[st ] March. top middle: The Porvoo Communion Conference at The Cornerstone, Cardiff, 8[th] October. bottom middle: The Commission of Covenanted Churches at The Norwegian Church, Cardiff Bay 7[th] June. bottom right: Local school children at the St Deiniol’s Day festivities in Bangor Cathedral, 11[th] September._
Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Chair’s Introduction**
The Representative Body has sought to serve the Church faithfully in this context, to steward its resources responsibly while supporting the life, ministry and mission of the province.
During the year, the Representative Body undertook a wide range of activities in support of the wider Church. The provincial safeguarding team continued to work tirelessly to support the province in this important area of work. A provincial human resources service was continued to bed in to help strengthen support for dioceses. Excellent work was undertaken in the development of a new property strategy to set a clear vision to support the management of the Church in Wales’s buildings and their use in mission across the province. St Padarn’s Institute has continued to play a vital role in the formation and development of clergy and lay ministers. The Church Growth Fund saw the submission of innovative and inspiring evangelistic projects.
This year also marked a change in provincial leadership. Following the retirement of Archbishop Andrew, the Representative Body welcomed Archbishop Cherry as Archbishop of Wales and we look forward to working with her.
Alongside these areas of growth and transition, the Representative Body has also had to engage with more challenging matters. The trustees recognise the significance of the forthcoming Anthony Pierce Report published in February 2026 and, will work with the Governing Body’s Standing Committee to carefully consider its findings. This will ensure that lessons are learned across the Church. Significant attention has also been given to supporting diocesan colleagues in relation to issues at Bangor Cathedral. This work has been undertaken with care and seriousness, recognising the Representative Body’s responsibilities for stewarding the Church’s assets.
During a year of global market volatility and wider economic uncertainty, the Representative Body has continued to prudently steward the Church’s assets. Trustees received assurance through an unqualified external audit and remained confident in the Representative Body’s overall financial sustainability. A new programme of internal audit has begun which is helping us to optimise our processes and is already enabling new efficiencies. Detailed financial analysis was also undertaken following the private members’ motion passed by the Governing Body in September 2025. Work continues on this matter to reevaluate funding structures across the Church in Wales.
I would like to express my sincere thanks to all trustees and committee members for their time, expertise and commitment. I am also deeply grateful to staff across the province whose professionalism enables this work to be carried out effectively. In particular, I wish to acknowledge the provincial safeguarding team. Their workload and the complexity of the cases they handle have increased significantly, and their work continues to provide an essential service to the Church in Wales.
I also extend my thanks to the clergy for their service and commitment to the Church in Wales and all they do to bring the Church’s mission to life in our communities.
The Representative Body exists to serve, support, and resource the six dioceses and mission and ministry areas of the Church in Wales. Despite the challenges of the past year, we look ahead with confidence rooted in the faithfulness of God and the hope of the Gospel. As we continue to steward the resources entrusted to us, we do so with a renewed commitment to transparency, accountability and the flourishing of the whole people of God.
**Professor Medwin Hughes Chair of the Representative Body**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Trustees’ Report**
## **Objectives and Activities**
The Representative Body’s key objectives, purposes and main activities are:
- To manage its investments so as:
- To meet the past service liability of the Clergy Pension Scheme;
- To provide the maximum sustainable level of support for the work of bishops, dioceses, mission areas and cathedrals.
- To manage the ecclesiastical and secular property vested in it for the uses and purposes of the Church in Wales.
- To support the Bench of Bishops in its oversight of the St Padarn’s Institute by employing its staff and providing financial and operational support resource.
- To employ specialist staff to advise the bishops in connection with their allocated portfolios of activity.
- To provide an efficient and professional administrative service across a wide range of functions including:
- Payment of stipends and pensions to serving clergy and pensioners;
- Management of trusts and other funds held provincially;
- Organisation of provincial meetings of the Representative Body, Governing Body, Bench of Bishops and their committees;
- Provision of services and guidance, in a range of areas including safeguarding, IT, property management, data protection and human resources;
- Maintenance of databases and information management.
## **2025 Objectives**
_The Representative Body’s key objectives in 2025 were to:_
- Administer the Church Growth Fund in line with the criteria and application process devised by the Church Growth Fund Allocation Group, in consultation with the Representative Body, ensuring rigorous scrutiny and accountability with accessibility and a willingness to encourage and support innovation.
- To work with dioceses to develop protocols for the mutual sharing of information to ensure financial transparency.
- To develop a holistic property strategy which will inform decision-making around and management of each type of property within the Church in Wales.
- To continue to provide training and practical support to assist all parts of the Church in Wales to engage effectively with the Climate Emergency and the movement towards being carbon net zero by 2030.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **On-going Objectives**
_The Representative Body’s on-going objectives continue to be:_
- **Maintaining diocesan support** Maintaining financial support for dioceses through the Partnership Funding and other provisions.
- **Financial stability**
Ensuring the financial stability of the clergy and staff pension schemes.
- **Fund performance**
- Generating investment returns that exceed agreed benchmarks.
- **Safeguarding**
Continuing to strengthen the church’s capacity in safeguarding as we seek to be a safe church.
The Representative Body’s achievements towards the above objectives can be found within the achievements and performance section of the report.
## **Public Benefit**
When planning its activities for the year, the Representative Body has taken into account the Charity Commission’s guidance on public benefit and its specific guidance to charities for the advancement of religion. The Representative Body provides significant financial support for the activities of the Church in Wales which is present in all communities throughout Wales. As such, the Representative Body’s assets (which include most church buildings) are available to the whole community. Regular worship, marriages, funerals, baptisms, pastoral care and outreach both at home and overseas are just some examples.
## **Achievements and Performance**
To ensure the Representative Body’s uses its resources in the best way to achieve its aims and objectives its operations are supported by four staff activity groups:
1. Mission and Strategy
2. St Padarn’s Institute
3. Legal, Safeguarding and Data Protection
4. Operations
**The achievements and activities of each staff activity group during 2025 have been summarised on the following pages:**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Mission and Strategy**
- We added 1,775 followers on Facebook – an increase of 238%,1,187 followers on Instagram, plus a reach of 75,437 – an increase of 598%.
- Commissioned a full website redesign allowing for the seamless integration and interoperability of provincial, diocesan and St Padarn’s websites.
- Following the successful development and launch of the Church in Wales’s Lectionary App, we are working on the production of the Daily Prayer App. The App will show prayer services for the chosen day and allow text to be downloaded.
- Partnership activity is progressing well, with fully funded Flourishing Headteachers and Flourishing Emerging Leaders programmes launching in February 2026 to support leadership development for 25 school leaders/emerging leaders across Wales.
- Preparations are on track for full implementation in January 2026, with 22 inspectors appointed and trained, a new inspection handbook and coordinator in place, and a six-year scheduled being finalised to deliver at approximately 30 inspections annually.
- A Strategic Vocations Initiative Group has been formed to generate, explore, and evaluate ventures, events, and resources that could lead to a measurable increase in both ordained and lay vocations.
- The annual gathering of Porvoo Communion churches was hosted by the Church in Wales in Cardiff as a theological conference on the 1700[th] anniversary of the Council of Nicaea.
## **St Padarn’s Institute**
- Launch of the new Ministry with Enhanced Responsibilities programme (MER). Applicants outnumbered places, a careful selection process was undertaken. There is broad representation from all six dioceses, and good diversity (e.g. gender, Welsh-speaking, age) amongst the successful applicants.
- A new pattern for full-time training for Formation for Licensed Ministry was implemented as part of the geographical equity section of the Strategic Direction set by the Bench of Bishops. The new pattern is six teaching blocks a year. In each block there are four weeks in Cardiff (Wednesday-Friday), a formational week where they will gather regionally for one day focused on prayer and spirituality, and have more flexibility to undertake placement activity, and an independent study week. People living a distance from Cardiff spend less time travelling, the demand on families is lessened, and regional formational days give opportunity for the dioceses to be involved in the training. There is no reduction in overall training time.
- September 2025 saw another modest increase in full-time candidate numbers, and sustained growth in enrolments on Theology for Life (BTh) and Master’s programmes.
- A faculty application for repair works on the chapel was successful, budget approved and work will start in 2026.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Legal, Safeguarding and Data Protection**
- Safeguarding staff were responsible for managing or advising on 501 casework concerns and requests referred to them (an increase from 421 in 2024).
- 136 Safeguarding training courses and 20 data protection training courses were provided, in-person across Wales and online, to volunteers, clergy and lay staff as well as canon law training to ordinands and clergy new to the Church in Wales. In total 2110 people received live safeguarding training, 1711 in person and 399 online (an increase of 11.8% on 2024).
- The legal and safeguarding teams provided support and assistance in a major external safeguarding review following the conviction and imprisonment of a former Diocesan Bishop.
- The charity’s data protection policies and privacy notices were comprehensively reviewed and updated in light of the commencement of the _Data (Use and Access) Act 2025_ .
- A range of confidential advice was given to the Representative Body, Bench of Bishops and Governing Body committees on matters including property, employment, charity, canon and pension law.
- An ongoing consolidation exercise of small trusts held for particular charitable purchases led to the closure, merging or amalgamation of 53 trusts, assisting in the efficient administration of the charity’s assets.
## **Operations**
- Commissioned an internal audit partner to review approaches to business continuity planning, risk management, key finance controls and cybersecurity.
- Working with an independent agency, conducted a benchmark review of the Representative Body staff pay structure for implementation in 2027.
- In anticipation of a 2026 break clause in the lease of the Callaghan Square office, conducted a review of the office rental market and planned an office move in August 2026.
- In response to a Governing Body debate, conducted a major piece of analysis of Representative Body finances to inform options on funding for ministry.
- Implemented a salary sacrifice scheme for staff in the defined contribution pension scheme.
- Completed restructures of the Property, HR and IT departments to optimise service provision.
- Devised and implemented a new procurement policy to ensure best value in the selection of providers across the Representative Body.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Support for Dioceses**
During 2025, the Representative Body continued to provide a comprehensive portfolio of services, advice and financial support to the wider Church in Wales.
## **Examples of services and advice provided during the year were:**
## **Human Resources**
The team provided support in relation to clergy office holders and Representative Body employees. A thorough review of policies and procedures is underway to ensure that they are compliant with recent legislative changes and are fit for purpose. Work is underway, with others, to focus on training and development opportunities for clergy and staff.
## **Property Services**
The team provided advice and support to the whole Church in Wales for its estate of church buildings, residential and other properties, graveyards and other land holdings.
## **Legal Services**
The team provided advice to ministry areas and parishes in connection with approximately 1,890 trusts.
## **Safeguarding**
The team provided training as required to mission areas and parishes, conducted the DBS checks and dealt with the high volume of casework across the province.
## **Finance Services**
The team administered the payment of stipends, managed the administration of the Common Investment Fund, the Clergy Pension Scheme and the Staff Defined Benefit Scheme. The team also processed significant volumes of purchase invoices, prepared monthly management accounts and assisted with queries.
## **IT Services**
The team provides IT provision to staff in diocesan offices, the provincial office, St Padarn’s and bishops’ offices. Church in Wales e-mail addresses are provided for clergy in all dioceses.
## **Governance Services**
The team provided the provision of secretariat support to the Governing Body, the Standing Committee, the Representative Body, and their sub-committees, and to the Bench of Bishops.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Financial Support**
The Representative Body provided the following financial assistance to the dioceses, ministry areas and cathedrals in 2025:
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Funding
Funding Type
Provided
Partnership Funding £2.8m
Structural Resilience Fund £3.6m
Evangelism Fund £1.1m
Church Growth Fund £2.3m
Clergy pension current service contributions £3.1m
Total £12.9m
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## **Partnership Funding**
Provided to help with costs such as salaries, Cathedral stipends and posts which strengthen the resilience of the diocese and catalyse needful change.
In addition, Bishops’ costs (including their office costs) are met directly by the Representative Body, these totalled £1.4 million in 2026.
## **Structural Resilience Fund**
A strategic ten-year funding initiative totaling £37 million aimed at ensuring the long-term stability and strength of the Church’s infrastructure (see Note 18 for further details).
## **Evangelism Fund**
Established in 2018 by the Representative Body to provide major funding for dioceses to enact their strategies on evangelism and church growth. The Evangelism Fund has now been replaced by the Church Growth Fund. Drawdowns will continue until all projects are completed.
## **Church Growth Fund**
Launched in October 2023 with £100 million of capital reserves being set aside to invest in evangelism over a 10 year period from 2023.
The Representative Body has committed significant sums of money over a 10-year period and this commitment may affect the long-term ability of the charity’s investment portfolio to generate income.
It is imperative that this funding is used appropriately, and an important element of ongoing work will be to ensure projects which receive support from the Church Growth Fund are held accountable for their effectiveness. It is a condition of all Tier 2 grants (£10,000 or more) that a Project Manager be employed. One of the roles of the Church Growth Fund Allocation Group is to monitor, audit and challenge projects that receive funding from the Fund and - where necessary - reduce or discontinue work that is not bearing fruit. The Allocation Group has also designed the application process for the Fund, assesses applications made and makes grants within agreed budgeting parameters.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Investments**
## **Policy and Objectives**
Section 20 of Chapter III of the Constitution gives the Representative Body the power to invest all monies it holds in trust for the Church in Wales, which gives wide ranging authority for investment.
The objectives of the Representative Body’s investments are to:
- £ Achieve a balance between sustainable levels of income and capital growth.
- £ Optimise total returns without undue risk.
- £ Continue to meet the Representative Body’s current to long-term liabilities and income commitments.
- £ Operate within the constraints of the Church in Wales’s Ethical Investment Policy.
Diversification in a range of assets is essential to reducing risk and therefore forms an important part of the investment strategy of the fund. The assets in which the fund is invested are regularly reviewed.
## **Fund Managers**
Sarasin & Partners LLP and Newton Investment Management each manage one half of the stock exchange investment fund, under a Global Multi-Asset mandate.
Cluttons LLP manage both the investment properties and the property unit trusts of the charity.
## **Investment Performance**
The Trustees are satisfied that the overall portfolio has performed satisfactorily during the year and continues to support the long-term objectives of the Representative Body.
## **Stock Exchange**
- £ Investments increased by 6% to £779.8 million.
- £ The total return of the investments was 7.9% compared to the ARC comparator of 9.3%. Inflation was 3.4% as at 31[st] December 2025.
The performance of the Representative Body’s total investment fund, including the stock exchange investments and property investments, is measured relative to the ARC GBP Steady Growth ACI benchmark.
## **Investment Properties**
- £ The Representative Body holds nine investment properties as well as units in one Property Unit Trust.
- £ The nine properties are independently valued at each year end.
- £ The investment property portfolio decreased by 2.4% to £58.8 million. due to two million units held in Property Unit Trusts being sold as well as the annual valuation factoring in tenants whose break clauses are approaching. On a like for like basis an increase of 0.9% was achieved.
- £ The total return of the property portfolio amounted to 6.8% over the 12 months to 31[st] December 2025. The portfolio outperformed the MSCI/AREF All Balanced Property Fund Index but marginally underperformed the MSCI Monthly Index, which recorded 5.1% and 7.1% respectively over the same period.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Ethical Investment Policy**
The Church in Wales has had an Ethical Investment Policy for many years, with the current policy statement being adopted by the Governing Body in April 2026.
This policy provides the Representative Body with an investment framework that is both ethical and consistent with the furtherance of its aims and objectives. It is entirely appropriate and possible to operate such a policy alongside the requirement to achieve the best returns from our investments, and to use its investments as an ethical means of contributing to the cost of ministry and mission in the province.
The Ethical Investment Policy can be viewed via the link:
https://www.churchinwales.org.uk/en/publications/administration-and-business/ethical-investment-policy
## **Work on stewardship, environmental, social and governance matters**
The Representative Body wishes to be a well informed and responsible investor, and to this end is represented on the Church Investors Group, which is a means of accessing research, obtaining reliable information, sharing best practice with other member organisations, and exercising combined shareholder influence.
Ethical investing, including ESG items, are discussed by the Investment Committee at each meeting.
During the year, the Trustees continued to strengthen the integration of environmental, social and governance (ESG) considerations across both the direct property and listed equity portfolios.
Within the direct property holdings, this included ongoing monitoring and improvement of EPC ratings, and a review of tenant ESG practices.
For the stock exchange portfolio, the Trustees worked closely with the appointed investment managers to ensure that ESG factors were embedded within investment decision-making, stewardship and voting activity. This included regular review of managers’ ESG integration, engagement outcomes, and alignment with recognised responsible investment principles. Collectively, these actions are intended to improve long-term risk-adjusted returns while supporting the charity’s commitment to responsible investment.
It is the first year that travel data held within the accounting system has been reviewed in relation to environmental factors and indicators.
- Electric vehicle mileage totalled 56,555 miles, equating to around 16% of total mileage incurred.
- While the charity cannot directly influence vehicle choice, this data has provided a valuable insight into travel patterns and emissions, helping to shape the expenses policy to encourage sustainable alternatives such as public transport, train travel, and car sharing.
- Total CO ₂ emissions from travel are approximately 98 tonnes per year, roughly equivalent in an organisational context to 95 long-haul return flights (London – New York, economy class) or the annual carbon footprint of approximately 35 average homes.
- Work will continue in this area in 2026 as further data and performance indicators are explored.
A gender audit was undertaken for the charity’s full staff base, Executive Leadership Team, Bench of Bishops and the Representative Body’s trustees. The gender audit found that the Representative Body has a slight female majority in the staff base and gender parity within the Executive Leadership Team. There is a male majority on the Bench of Bishops and amongst the Representative Body’s Trustees.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Financial Review**
## **Results**
The Representative Body operational results for the year were:
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2025 2024
General fund income £21.8m £21.3m
General fund expenditure (£20.9m) (£24.2m)
Net operational surplus / (deficit) £0.9m (£2.9m)
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The overall results of the Representative Body for the year were:
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2025 2024
Net operational surplus / (deficit) £0.9m (£2.9m)
Investment gains £43.2m £64.7m
Clergy pension provision movement (£7.5m) £4.9m
Revaluation of fixed assets £25.3m (£7.5m)
Actuarial gain on pension scheme £1.0m £2.7m
Net movement in general funds
£62.9m £61.9m
(before transfers)
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## **Financial Summary**
Over 94% of the Representative Body’s income is generated through its investments.
The income generated by these investments is used to fund the Partnership Funding to dioceses, training through St Padarn’s Institute, the ministries of the six bishops and the operations of the provincial office. The Representative Body usually runs an income and expenditure deficit and its expenditure has for many years exceeded its income, but this is offset by the capital gains of the investment portfolio. The Representative Body is aware that commitment to structural expenditure which progressively erodes its capital base will reduce its income and ability to fund the ministry and mission of the whole church in years to come.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Financial Review** _**continued**_
## **Internal Audit**
The Representative Body contracted the services of internal auditors TIAA for a three-year period which commenced in 2025. The contract allocates 45 days of internal audit work per annum.
The following assignments were carried out during 2025:
- Investment management
- Risk management
- Key financial controls
- Cyber security
- Business continuity and disaster recovery
The findings of each assignment are reported to the Audit and Risk Committee as well as detailed action plans which address each recommendation and associated timescales for implementation.
The 2026 assignments include:
- Safeguarding compliance
- HR policies and procedures
- Property compliance
- GDPR
- Further reviews on key financial controls
## **Pension Schemes**
## **Defined Benefit Pension Scheme**
March 2017. The charity operates a defined benefit pension scheme which closed to new entrants on 31[st] The full actuarial valuation of the scheme was carried out on 31[st] March 2024. The table below summarises the results of the last 3 valuations:
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2024 2021 2018
Actuarial valuation £2.9m (£2.7m) (£3.2m)
Employer contribution rate 18% 26% 22%
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## **Clergy Pension Scheme**
The Clergy Pension Scheme is a non-contributory final salary scheme and is a significant benefit for the clergy.
The Clergy Pension Scheme forms part of the overall investments of the Representative Body and the
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Pension Schemes** _**continued**_
long-term challenge is to ensure that pension liabilities are held as a stable proportion of the Representative Body’s total assets.
The Clergy Pension Scheme is reviewed every three years and the last actuarial valuation that took place as at 31[st] December 2025.
The table below summarises the results of the last 3 valuations:
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2025 2022 2019
Market Value of the Representative Body’s
£853.0m £733.0m £719.0m
Investment Funds and Net Current Assets
Value of Past Service Liability (£138.9m) (£140.4m) (£196.2m)
Liability as a proportion of Investment Funds
16.3% 19.2% 27.3%
and Net Current Assets
Employer’s Current Service Contributions 22.7% 26.8% 36.5%
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## **Reserves Policy**
## **Income and Financial Context**
The Representative Body derives approximately 94% of its annual income from stock exchange and property investments. As such, its financial position is significantly influenced by market performance, investment returns, and economic conditions.
The Representative Body has been advised that the maximum sustainable withdrawal rate from its investment portfolio is 4%. This rate is designed to preserve the real value of the portfolio over the long term while providing a stable income stream.
## **Reserves Objective**
Reserves are defined as unrestricted funds that are freely available to spend on any of the Representative Body’s purposes. This excludes endowment funds, and fixed assets held for operational use.
The Representative Body aims to maintain reserves at a level sufficient to:
- Ensure continuity of operations in the event of a significant downturn in investment income.
- Provide a buffer against market volatility and unexpected financial shocks.
- Allow for orderly adjustment of expenditure where required.
- Protect the long-term value of the Representative Body’s investment portfolio.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reserves Policy** _**continued**_
## **Risk Considerations**
In setting the reserves level, the Trustees have considered:
- The variability of investment returns and income.
- Liquidity of investment assets.
- Inflation risk and its impact on both income and expenditure.
- The sustainability of the 4% withdrawal rate.
- The absence of significant alternative income streams.
## **Target Level of Reserves**
Given the Representative Body’s reliance on investment income and exposure to market fluctuations, the Trustees have determined that an appropriate reserves level is to hold an investment portfolio value based on a 3.5%-4% withdrawal rate. The investment portfolio value is to be calculated on rolling average of 5 years to ensure appropriate safeguards are in place regarding market volatility.
Based on the average operational expenditure over the next five years of £27.2 million per annum, this equates to a target reserves range of approximately:
- **Minimum:** £678 million
- **Maximum:** £775 million
## **Additional considerations**
The following have also been incorporated into the target reserves range:
1. As the clergy pension scheme assets form part of the charity’s stock exchange investments, the value of the liability (£138.9 million) has been added.
2. A contingency of £15 million to enable the charity to respond to exceptional significant events, as was the case during the pandemic.
- **Minimum:** £832 million
- **Maximum:** £929 million
This range reflects:
- The potential for volatility in equity and property markets.
- The time required to adjust expenditure in response to reduced income.
- The need to avoid excessive accumulation of funds that could otherwise be deployed for charitable purposes.
The target reserves figures do not include Church Growth Fund or Structural Resilience funding due to these being time bound and a capital withdrawal from the portfolio to fund these items being agreed by the trustee board in 2023.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reserves Policy** _**continued**_
If included, the target reserves policy range would be approximately:
- **Minimum:** £1,175 million
- **Maximum:** £1,321 million
## **Current Reserves**
The current value of the stock exchange investment portfolio of the charity as at 31st December 2025 totalled £779.8 million. If the value of the investment properties and property unit trusts is added the revised figure is £838.5 million.
This currently sits just inside the minimum reserves target. However as noted above, large capital withdrawals are required to be made each year until 2033 and as such the value of the portfolio will fall below such limits.
In determining the reserve target calculations above, future designated fund expenditure has been included and as such any designated investment assets at the year end have been included in the current reserves value above.
Investment values on a five year rolling period can be seen below:
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2025 2024 2023
Average value £778.7m £758.5m £738.7m
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It can be seen that the above values currently fall below the minimum reserves target level.
The charity is currently reviewing its planned operational expenditure with the aim of reducing its core cost base to minimise any future impacts.
## **Reserves of the charity**
The Representative Body’s reserves at the year-end consist of:
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2025 2024
Endowment funds £5m £5m
Designated funds £355m £391m
Pension reserve £6m £4m
General reserves £619m £527m
Total reserves £985m £927m
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reserves Policy** _**continued**_
## **Fund Purposes**
The **Endowment Fund** represents the value of the former St Michael’s College site which is used as a theological college and is known as St Padarn’s Institute.
The **Designated Funds** are general funds earmarked for an agreed purpose. All designated funds are reviewed annually by the Finance Committee and returned to general funds if the purpose of their designation is no longer required.
75% of the total designated funds comprises the value placed on charity’s fixed assets and non-investment properties. These are not income-generating assets and reflect the working plant of the Church. The remaining balance is specifically earmarked for future costs.
The **Pension Reserve** represents the value placed on the staff defined benefit pension scheme by the actuary.
The **General Funds** make up the balance of the funds and are the assets that are invested in stock exchange securities and investment property on a total returns basis to generate the income and capital returns required to ‘run’ the Representative Body’s operations. The Representative Body aims to achieve a 5.5% total return, although this may not be sustainable in the future.
## **Risk Management**
The Representative Body has an extensive risk register which is overseen by the Audit and Risk Committee along with regular reviews by all risk owners, the Chief Executive and the Chief Operating Officer. It is formally reviewed annually by the Representative Body.
An internal audit of the risk management process was undertaken during 2025. This found that traditional approaches to risk identification and mitigation were overly consolidated in senior management and provided recommendations on how to improve. A risk management training session was provided to all staff in December 2025, and risk has been incorporated into the standard format of all team meetings across the Representative Body. Escalation approaches have been revised, a new framework developed and risk appetite incorporated into reviews.
The 2025 risk register identifies the major risks to which the organisation is exposed and the scope of such risks. The register then identifies the controls and procedures which have been established to manage and mitigate those risks, from which there are defined action points, strategies and timescales to mitigate risk further.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Risk Management** _**continued**_
The 2025 risk register has identified the following as the seven most significant risks and the plans and strategies for managing the highlighted risks:
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Risk Mitigation and Strategies
● Firewall and security procedures in place at all sites
Unauthorised network ● Deployment of DarkTrace network protection
access ● Annual penetration testing commenced in May 2026
● Two-factor authentication to access network
Failure by any part of ● Safeguarding policy in place
the Church in Wales to ● Training provided for all clergy, lay ministers and volunteers
follow the Safeguarding ● Dedicated safeguarding case working and trainers
Policy ● Provincial Safeguarding Panel
●
Dedicated staff members to manage redundant church buildings
Increasing number of ● Grants provided to assist with repairs to avoid closures
redundant churches ● Property department offers support and guidance
● Regular meetings with diocesan teams to horizon scan
● Partnership funding and structural resilience funding provided with a
Financial instability or 10-year agreement
insolvency of a DBF or ● Annual accounts and management accounts submitted by each diocese
cathedral ● Regular communication and dialogue with each diocese
● Regular meetings between the DBF Chairs and the Chair of the RB
● Investment performance reviewed quarterly by the Investment Com-
mittee and regularly by the Chief Executive and the Director of Finance
●
Diversified investment policy in place
Reduction of the ● Stock Exchange portfolio is managed by two fund management firms,
with the property portfolio including a mix of property from different
charity’s assets
sectors, whose performance is measured relative to a respected
benchmark
●
Robust cash flow forecast and reporting tool in place to ensure money
is only withdrawn from portfolios when required
●
DarkTrace network protection system offers cutting edge AI driven
network and viral protection
● Password management protocols exceed recommended IT security
Computer viral attack
audit standards
● Annual penetration testing
●
Training provided to all staff at regular intervals
● Interconnected membership of main structural bodies with consistent
Governance structure staff presence and support
of the Church in Wales
● Quarterly meeting of Representative Body and DBF Chairs and
no longer appropriate
secretaries
for the needs of the
● Diocesan Secretaries meet weekly with regular attendance of senior
organisation
Representative Body staff
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Governance Structure**
**----- Start of picture text -----**
Governing Representative
Be nch of Bishops
Body Body
St. Padarn’s Bench Committees
Standing
Quality and Bishops' Portfolio
Committee
Standards Panel Support
Appointments
Safeguarding Drafting Legal
and Business
Committee Sub-Committee Sub-Committee
Sub-Committee
Cathedrals & Human
Finance Audit & Risk Investment Property
Churches Resources
Committee Committee Committee Committee
Commission Committee
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Plans for Future Periods**
## **Office move**
A review of available options has been conducted and commercial negotiations to secure a smaller office space have begun. It is expected that the move will take place in late 2026.
## **New pay structure**
Following an industry benchmarked review of Representative Body staff pay, a new pay structure has been devised. This will be implemented in 2027 subject to Trustee approval.
## **Property review and internal audit**
The management of the Representative Body’s property estate and the services it provides to dioceses and Ministry Areas will be reviewed by our internal audit partners. This will inform proposals to revise and modernise those processes.
## **Funding the church**
In September 2025 a private members’ motion was passed by the Governing Body requesting a financial analysis of the effect of restoring the Representative Body’s contribution towards local ministry costs to the levels prior to the 2005 Representative Body Review, whilst maintaining Church Growth Fund funding at present levels.
Significant analysis has been undertaken following this motion. This has been presented to the trustees of the Representative Body as well as its Finance and Investment committees, the Bench of Bishops and to the Standing Committee as part of a joint meeting of the Standing Committee and Representative Body. The analysis produced several options which will be refined and explored with the wider Church in Wales. Work to implement any decisions made by the Governing Body in relation to this will influence the work of the Representative Body over the coming years.
Conducting the financial analysis has also revealed the need for work to be undertaken in associated areas, including the development of a reserves policy and a clearer articulation of the Representative Body’s strategic objectives.
## **Structure, Governance and Management**
## **Governing document**
The Representative Body was incorporated by Royal Charter on 24[th] April 1919 and registered with the Charity Commission on 11[th] July 2011. The charity is constituted to hold all property and investments vested in it in trust for the use and purposes of the Archbishop, Bishops, Clergy and Laity of the Church in Wales. These assets are held to maximise the support which can be given to the mission of the Church in parishes throughout the province.
## **Recruitment and appointment of trustees**
The Representative Body comprises up to 26 members and normally meets three times a year. The membership and functions of the Representative Body are regulated by Chapter III of the Constitution of the Church in Wales.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Structure, Governance and Management** _**continued**_
Trustees (other than _ex-officio_ trustees) are appointed for a three-year term of membership. The Representative Body’s membership consists of:
- The Archbishop.
- The Chair of the Standing Committee of the Governing Body.
- The Chair of the Diocesan Board of Finance of each diocese.
- One cleric elected by the Diocesan Conference of each diocese.
- One lay person elected by the Diocesan Conference of each diocese.
- Up to four members nominated by the Bench of Bishops in consultation with the Standing Committee.
- Up to two members co-opted by the other members of the Representative Body.
The following are eligible to be members of the Representative Body:
- Any cleric who holds an ecclesiastical office in the Church in Wales or a license from a diocesan bishop in the Church in Wales who is not retired nor has reached the age of 70.
- Any lay communicant over 18 and under 75 years of age who either:
- Resides or has resided for a period of 12 months in a Church in Wales parish; or,
- Whose name appears in the electoral register in a Church in Wales parish and who does not belong to a religious body which itself is not in communion with the Church in Wales.
A lay communicant may be elected a member of the Representative Body only for the diocese in which he or she either resides, holds diocesan office or has his or her name on the electoral roll of a parish in such diocese. No full-time employee of the Representative Body, a Diocesan Board of Finance or any other such provincial or diocesan body within the Church in Wales shall be eligible to be a member of the Representative Body.
## **Trustee induction and training**
It is the policy of the Representative Body that its members should be provided with training appropriate to their duties both as charity trustees and as members of its committees. New members are given the opportunity to attend external training events for charity trustees and invited to an induction session at the provincial office to meet staff and to learn more about the work of the Representative Body, the Governing Body and the Bench of Bishops.
In addition, members are offered training tailored to meet specific gaps in knowledge or experience, often linked to a member’s work with the Representative Body’s committees. In the past this training has proved to be particularly beneficial in the complex and specialised areas of investments and audit.
## **Committees**
The Representative Body has six committees – Investment, Property, Human Resources, Audit and Risk, Finance and the Cathedrals and Churches Commission – each with specific terms of reference and functions delegated by the Representative Body and reviewed every three years. Each committee is made up of Representative Body trustees as well as external members with the relevant specialist skill set.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Structure, Governance and Management** _**continued**_
## **Investment Committee**
The Investment Committee determines the investment strategy for approval by the Representative Body (within the overall policy objectives of the Representative Body and with advice from their appointed advisers) and recommends for the Representative Body’s approval all strategic decisions necessary to manage the investments of the Representative Body within this strategy.
## **Property Committee**
The Property Committee has responsibility for policy relating to the Representative Body’s non-investment property including churches, parsonages, burial grounds, glebe land, and bishops’ residences and the management of those properties. Its duties are wide ranging and include authorising the sale and purchase of properties; developing strategies for dealing with redundant church buildings and churchyards; administering trusts, legacies and bequests; and administering grants for the repair and improvement of properties.
## **Human Resources Committee**
The Human Resources Committee is responsible for developing policies and procedures for clergy, staff and volunteers in line with good practice and the specific legislation that applies to each group. This includes advising the Representative Body on the level of clergy stipends and staff salaries and the terms and funding of the pension schemes for clergy and staff respectively.
## **Audit and Risk Committee**
The Audit and Risk Committee works with the Representative Body’s external auditors to ensure proper financial reporting practice and compliance with charity accounting requirements. It is also responsible for monitoring the effectiveness of the internal audit function. It also has an important role in overseeing the risk management process and to consider the potential financial exposure on safeguarding matters.
## **Finance Committee**
The Finance Committee was established in 2021 and is the principal place of detailed engagement and interface between the Representative Body and its staff on matters of financial strategy development; financial planning and budgeting; scrutiny of un-budgeted expenditure proposals; financial arrangements with the diocesan boards of finance; and matters relating to the staff and clergy pension schemes.
## **Cathedrals and Churches Commission**
The role of the Cathedrals and Churches Commission is to provide expert advice to diocesan courts and advisory groups on applications for major works to cathedral and church buildings as part of the in-house procedure (or faculty procedure) established by the Church in Wales as a condition of the ecclesiastical exemption from local planning controls.
## **Conflicts of Interest**
Representative Body members are likely to serve the Church in Wales in other ways and some, in particular clergy members, receive remuneration in these other roles. The Representative Body operates a conflicts of interest policy to ensure that members’ other interests – either personal or on behalf of other organisations within the Church – do not exercise an inappropriate influence on the Representative Body’s own decision making. A register of members’ interests is maintained and updated regularly, and members are given the opportunity at the beginning of each meeting to declare any potential conflicts with items under consideration.
## **Fundraising**
The Representative Body does not actively fundraise, but donations are gratefully received. No complaints have been received in respect of fundraising.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Structure, Governance and Management** _**continued**_
## **Organisational structure and decision making**
The organisational structure of the charity comprises the following:
## **Executive Leadership Team**
- Chief Executive
- Chief Operating Officer
- Director of Mission and Strategy
- General Counsel and Head of Legal Services
- Principal of St Padarn’s Institute
- Director of Operations St Padarn’s Institute
- Director of Safeguarding
- Director of Finance
- Director of Education
## **St Padarn’s Institute**
- Principal of St Padarn’s Institute
## **Operations Team**
- Chief Operating Officer
- Director of Finance
- Director of Property Services
- Director of IT
- Governance Manager
- Director of HR
## **Mission and Stategy**
- Director of Mission and Strategy
## **Legal and Safeguarding**
- General Counsel and Head of Legal Services
- Director of Safeguarding
- Director of Operations St Padarn’s Institute
The trustees delegate day to day management and decision making to the Chief Executive who is supported by the Executive Leadership Team.
## **Arrangements for setting the pay and remuneration of the charity’s key management personnel**
The current salary structure of the charity is one that is based on a spinal system that has been in use since 2008. Each band contains six spinal points and employees annually progress through a pay band until they reach the top of the scale. At that point, pay is only increased in line with the cost-ofliving increase proposed on an annual basis by the Human Resources Committee and agreed either as presented or in amended form by the Representative Body. On appointment of a new role, the role is benchmarked against market data and an employee is subsequently recruited at a grade and band in line with the market findings.
A review of the pay structure of the Representative Body was commissioned during the year and was subject to an external benchmarking process facilitated by a specialist agency where roles were benchmarked against various market datasets. The new pay structure will be implemented from 1[st ] January 2027 with the majority of roles moving across at parity. In future periods remuneration will be increased annually by a cost of living award which is agreed by the Representative Body at it’s June meeting as well as a performance related award ranging from 2-3% for those who are deemed to have performed strongly or outstanding. The determination of such awards will form part of the annual work review process.
The Chief Executive’s remuneration is reviewed and considered by a Remuneration Group which is convened by the Chair of the Representative Body. The remuneration is benchmarked using market data.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reference and Administrative Details**
**----- Start of picture text -----**
Charity name The Representative Body of the Church in Wales
Known as The Representative Body or the RB
Charity registration number 1142813
Principal office 2 Callaghan Square, Cardiff, CF10 5BT
Website www.churchinwales.org.uk
**----- End of picture text -----**
## **Representative Body Membership**
**----- Start of picture text -----**
Chair Professor M Hughes
Deputy Chair The Very Reverend N H Williams
**----- End of picture text -----**
## **Ex Officio Membership**
**----- Start of picture text -----**
The Most Reverend A T G John, Archbishop of Wales
(to 27 [th] June 2025 )
Archbishop of Wales
The Most Reverend C E Vann, Archbishop of Wales
(from 30 [th] July 2025)
Chair of Standing Committee Mr T Llewelyn
Chair of St Asaph
Mrs S Allin
Diocesan Board of Finance
Chair of Bangor
Dr H J Parry-Smith
Diocesan Board of Finance
Chair of St Davids Mrs H Evans (to 3 [rd] July 2025)
Diocesan Board of Finance Mr T Llewelyn (from 3 [rd] July 2025)
Chair of Llandaff
Mr M A Lawley
Diocesan Board of Finance
Chair of Monmouth
Mr I S Loynd appointed 17 [th] September 2024
Diocesan Board of Finance
Chair of Swansea and Brecon
Vacant
Diocesan Board of Finance
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reference and Administrative Details** _**continued**_
## **Elected Membership**
## **St Asaph**
The Very Reverend N H Williams, Dean of St Asaph Mr P R Williams
## **Bangor**
The Reverend M J Beecroft Dr H J Parry-Smith became _ex officio_ from 1[st] January 2025 (since vacant)
## **St Davids**
The Venerable P Mackness, Archdeacon of St Davids Mrs J A P Hayward
## **Llandaff**
The Venerable R E A Green, Archdeacon of Llandaff Dr H Payne
## **Monmouth**
The Venerable I K Rees, Archdeacon of Monmouth Miss N C Gibbons
## **Swansea and Brecon**
The Reverend Dr A Morgan Ms Elizabeth Thomas (from 15[th] December 2025)
## **Nominated Membership**
Professor M Hughes Mr C Clarke Mr P D Kennedy Mr T O S Lloyd OBE, DL, FSA
## **Co-opted Membership**
Mrs J Heard Mr R Anning
## **Key Management Personnel**
## **Chief Executive**
**Chief Executive** Canon S J Lloyd **Chief Operating Officer** Mr L Hughes **General Counsel and Head of Legal Services** Mr M Chinery **Director of Mission and Strategy** Dr G Davies **Principal of St Padarn’s Institute** The Reverend Canon Professor J Duff
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Reference and Administrative Details** _**continued**_
## **Advisors**
**----- Start of picture text -----**
Auditors HaysMac LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Lloyds Bank Plc
4 [th] Floor, St William House
Tresillian Terrace
Cardiff
CF10 5BH
Investment Property Advisors Cluttons LLP
Yarnwicke
119-121 Cannon Street
London
EC4N 5AT
Internal Auditors TIAA Ltd
Artillery House
Fort Fareham
Fareham South
PO14 1AH
Investment Advisors
Newton Investment Management Sarasin & Partners LLP
BNY Mellon Financial Centre 50 George Street
160 Queen Victoria Street Marylebone
London London
EC4V 4LA W1H 7GA
Actuaries
Quantum Advisory Atkin & Co.
Cypress House Cornwall House
Pascal Close Blythe Gate
St Mellons Blythe Valley Park
Solihull
Cardiff
CF3 0LW B90 8AF
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Statement of Trustees Responsibilities**
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Observe the methods and principles in the Charities SORP.
- Make judgements and estimates that are reasonable and prudent.
- State whether applicable accounting standards 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 charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
By order of the Representative Body
## **Professor Medwin Hughes – Chair**
## **The Very Reverend Nigel Williams – Deputy Chair**
2[nd] July 2026
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Independent Auditors’ Report**
**Independent Auditors’ Report to the Trustees of the Representative Body of the Church in Wales**
## **Opinion**
We have audited the financial statements of the Representative Body of the Church in Wales for the year ended 31[st ] December 2025 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:
- December 2025 and of the
- give a true and fair view of the state of the charity’s affairs as at 31[st] charity’s net movement in funds 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 Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and the Chair’s Introduction. Our opinion on the financial
26
Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Independent Auditors’ Report** _**continued**_
statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charity; or
- sufficient accounting records have not been kept; or
- the charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement, the trustees 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity 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.
27
Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Independent Auditors’ Report** _**continued**_
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journal entries and key accounting estimates. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators.
- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud.
- Evaluating management’s controls designed to prevent and detect irregularities.
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions.
- Challenging assumptions and judgements made by management in their accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement 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.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
## **HaysMac LLP Statutory Auditor 10 Queen Street Place London EC4R 1AG**
HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
28
Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Statement of Financial Activities**
for the year ending 31[st] December 2025
**----- Start of picture text -----**
2025 2025 2025 2025 2024
Unrestricted Designated Endowment Total Total
Funds Funds Funds Funds Funds
Note £000 £000 £000 £000 £000
Income from:
Donations and legacies 2 - 101 - 101 1
Charitable activities income 3 446 658 - 1,104 828
Investment income 4 21,373 423 - 21,796 21,167
Total Income 21,819 1,182 - 23,001 21,996
Expenditure on:
Raising funds 5 3,252 - - 3,252 3,279
Charitable activities 6 17,610 8,272 - 25,882 25,360
Total expenditure before clergy
20,862 8,272 - 29,134 28,639
pension provision movement
Clergy pension provision movement 7,455 - - 7,455 (4,984)
Total expenditure after clergy
28,317 8,272 - 36,589 23,655
pension provision movement
Net (expenditure) / income before
(6,498) (7,090) - (13,588) (1,659)
investment gains
-
Net gains on investments 43,231 1,381 44,612 65,501
Net income/ (expenditure) 36,733 (5,709) - 31,024 63,842
Transfers between funds 17 29,574 (29,574) - - -
Other recognised gains / (losses):
Gains / (losses) on revaluation of fixed assets for the charity’s own use 25,311 - 100 25,411 (7,399)
Actuarial gain on defined benefit 20 1,034 - - 1,034 2,695
pension schemes
Net movement in funds 92,652 (35,283) 100 57,469 59,138
Reconciliation of funds
Total funds brought forward 18 531,409 390,578 5,200 927,187 868,049
Total funds carried forward 18 624,061 355,295 5,300 984,656 927,187
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Balance Sheet**
as at 31[st ] December 2025
**----- Start of picture text -----**
2025 2024
Note £000 £000 £000 £000
Fixed assets
Tangible assets 10 68 120
Investments 11 838,562 799,285
Non-investment properties 12 264,836 241,585
Total fixed assets 1,103,466 1,040,990
Current assets
Debtors 1 17,134 16,740
Cash at bank and in hand 4,708 8,584
Total current assets 21,842 25,324
Creditors: amounts falling due within one year 14 (7,614) (6,508)
Net current assets 14,228 18,816
Creditors: amounts falling due after one year
Provision for liabilities 21 (138,900) (137,100)
Net assets excluding defined benefit surplus 978,794 922,706
Defined benefit staff pension scheme 20 5,862 4,481
Total net assets 984,656 927,187
Funds of the charity
Endowment funds 16 5,300 5,200
Unrestricted funds
Designated funds 17 355,295 390,578
General unrestricted funds 18 618,199 526,928
Pension reserve 18 5,862 4,481
979,356 921,987
984,656 927,187
These financial statements were approved by the trustees on 2 [nd] July 2026.
Professor Medwin Hughes The Very Reverend Nigel Williams
Chair Deputy Chair
**----- End of picture text -----**
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Cash Flow Statement**
for the year ending 31[st] December 2025
**----- Start of picture text -----**
2025 2024
Note £000 £000
Cash generated from operations
Surplus 57,469 59,138
Adjustments for:
Investment income recognised in the statement of financial activities 4 (21,796) (21,167)
(Gains) on investments 11 (28,679) (31,170)
(Gains) / losses on fixed assets 12 (24,076) 2,692
Depreciation of tangible fixed assets 10 52 19
Movements in working capital:
Increase in debtors 13 (896) (242)
Increase in creditors 14 1,200 1,282
(Decrease) / increase in deferred income 15 (94) 112
Movement in clergy pension provision 21 1,800 (10,400)
Movement on staff defined benefit pension asset 20 (1,381) (3,454)
Net cash provided by operating activities (16,401) (3,190)
Statement of Cash flows
Cash flows from operating activities
Cash generated from operations (16,401) (3,190)
Cashflows from investing activities
Investment income received 4 21,796 21,167
Purchase of non-investment property 12 (4,481) (4,475)
Proceeds from the sale of non-investment property 5,306 6,729
Proceeds from the sale of property unit trusts 2,000 -
Purchase of stock exchange investments 11 (231,240) (246,629)
Proceeds from the disposal of stock exchange investments 218,641 217,250
-
Purchase of fixed assets (39)
Net cash used in investing activities 12,022 (5,997)
Cashflows from financing activities
Loan advances (299) (268)
Loan repayments 802 145
Net cash used in financing activities 503 (123)
Net decrease in cash and cash equivalents (3,876) (9,310)
Cash and cash equivalents at beginning of year 8,584 17,894
Cash and cash equivalents at end of the year 4,708 8,584
Analysis of changes in net funds
The charity had no debt during the current or previous year.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Notes to the Accounts**
## **Note 1 Accounting Policies**
## **Charity information**
The Representative Body of the Church in Wales is incorporated under Royal Charter and its principal office is 2 Callaghan Square, Cardiff, CF10 5BT.
## **Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and "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[st] January 2019)”. The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view.
This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £000. The financial statements have been prepared under the historical cost convention, modified to value certain financial instruments at fair value.
## **The principal accounting policies adopted are set out below.**
## **Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes.
The purposes and uses of the designated funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected.
If the amount is not known, the legacy is treated as a contingent asset.
Income from property and course income is recognised in the period to which the income relates. Any rent and course income received in advance is deferred and subsequently released in the period to which it relates.
Stock exchange income is recognised on the date the charity's right to receive payment is established.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Income from grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
## **Resources expended**
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 activity.
Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Costs of raising funds comprise the costs in relation to generating income such as fundraising activities.
Expenditure on charitable activities includes all costs relating to the furtherance of the charity's objectives as stated in the trustees report.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
**Resources expended** _**continued ...**_ Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. **Foreign currency** Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. **Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold improvements - over the life of the lease Motor vehicles - 20% straight line All other fixed assets are not capitalised due to their immaterial nature. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. **Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). **Heritage assets** A number of former church sites or ruins are owned. They are not saleable assets and are retained accordingly. No value has been included for them in the accounts. **Fixed asset investments** Stock exchange investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. Investment properties are initially measured at cost and subsequently revalued fair value at each reporting date with any changes in fair value being recognised in the Statement of Financial Activities. Property unit trusts are initially measured and cost and subsequently revalued at each year end based on net asset value per unit. **Non-investment properties** The charity has included non-investment properties in the Balance Sheet at a valuation using the methodology set out below. The following asset classes were valued by Savills (UK) Limited as at the year end and the basis of the valuation is set out below: Parsonages, bishops’ houses and sundry provincial property have been valued by the desktop valuation of a representative 20% sample of these properties and these results have been extrapolated to reflect the total valuation of the portfolio. There are also a number of sundry property buildings and plots which are not straightforward to value. Church Halls are valued based on the desktop valuation of a representative 20% sample of these properties which has then been extrapolated to reflect the total valuation of the portfolio. The St Michael’s College site is valued at open market value (existing use) based on a professional valuation. Glebe has been valued based on the desktop valuation of a representative 20% sample of the portfolio which has then been extrapolated to reflect the total value of the portfolio. The valuations were carried out by Cooke & Arkwright Limited and Jones Peckover Limited.
## **Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
## **Loans**
The charity has the following loans contained in the financial statements:
- Clergy housing loans (interest bearing) – interest is charged at one half of the Bank of England base rate. The rate is reviewed in April each year when current rates and their impact on borrowers are considered.
- Clergy housing loans (equity linked) – no interest is charged.
- Housing and cathedral loans – interest is charged at 3%.
- Curate house loans – no interest is charged.
- Ministry area loans – interest is charged at 2% below Bank of England base rate, subject to a minimum rate of 2%.
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## **Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Loans, including those issued at below-market rates, are treated as basic financial instruments and measured at amortised cost.
## _**Basic financial assets**_
Basic financial assets, which include debtors, loans, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Derecognition of financial assets**_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers.
Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **Taxation**
As a registered charity, the charity is entitled to the exemption from taxation in respect of income and capital gains received with sections 478-489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects purposes only.
## **Employee benefits**
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **Retirement benefits**
## _**Defined contribution scheme**_
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## _**Defined benefit scheme**_
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred. The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods. The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly.
Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## _**Pensions of Clergy and Surviving Spouses and Civil Partners**_
The Representative Body operates a pension scheme providing defined benefits based on years of service.
The assets of the scheme are held within the stock exchange investment portfolio of the charity.
The scheme is an unfunded scheme and is accounted for as a provision at the year end in line with the year end actuarial valuation.
## **Leases**
Rentals payable under operating leases are charged to expenditure on a straight line basis over the term of the relevant lease.
## **Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Key sources of estimation uncertainty**
## **Retirement benefit scheme**
As set out in notes, the charity operates a defined benefit pension scheme for all qualifying employees. The accounting cost of these benefits and the present value of the pension liabilities involved judgements about uncertain events including such factors as the life expectancy of members, the salary progression of current employees, price inflation and the discount rate used to calculate the net present value of the future pension payments. Estimates are used for all of these factors in determining the pension costs and liabilities incorporated in the financial statements. The assumptions reflect historical experience and judgement regarding future expectations and external actuarial specialists are also used to assist the exercise.
## **Clergy pension provision**
As set out in the note the Representative Body operates a pension scheme for its clergy providing defined benefits based on years of service.
The accounting cost of these benefits and the present value of the pension liabilities involved judgements about uncertain events including such factors a price inflation the life expectancy of members, the salary progression of current employees, and the discount rate used to calculate the net present value of the future pension payments. Estimates are used for all of these factors in determining the pension costs and liabilities incorporated in the financial statements. The assumptions reflect historical experience and judgement regarding future expectations and external actuarial specialists are also used to assist the exercise.
## **Valuation of non investment properties**
The charity holds non-investment properties which are used for charitable purposes. These properties are not revalued annually on an individual basis due to the scale and geographical dispersion of the portfolio. Instead, a representative sample comprising approximately 20% of the properties is revalued each year by qualified external valuers.
The results of this sample are then extrapolated to estimate the value of the remaining properties in the portfolio. This approach introduces estimation uncertainty, particularly in relation to changes in local property markets, condition of individual assets, and the appropriateness of the sample selected. Management reviews the valuation methodology and sample selection annually to ensure that the extrapolated results provide a reasonable approximation of fair value across the entire portfolio.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 2 2025 2024
Donations and Unrestricted Designated Total Unrestricted Designated Total
Legacies Funds Funds Funds Funds Funds Funds
£000 £000 £000 £000 £000 £000
Donations - 101 101 - 1 1
Legacies - - - - - -
Total - 101 101 - 1 1
Note 3 2025 2024
Charitable Activities Unrestricted Designated Total Unrestricted Designated Total
Income Funds Funds Funds Funds Funds Funds
£000 £000 £000 £000 £000 £000
Course income 315 - 315 265 - 265
Grants 115 - 115 137 - 137
Property income - 658 658 - 257 257
Sundry 16 - 16 169 - 169
Total 446 658 1,104 571 257 828
Note 4 2025 2024
Investment Income Unrestricted Designated Total Unrestricted Designated Total
Funds Funds Funds Funds Funds Funds
£000 £000 £000 £000 £000 £000
Interest 442 - 442 599 - 599
- -
Property 3,742 3,742 3,625 3,625
Stock exchange 17,189 423 17,612 16,529 414 16,943
Total 21,373 423 21,796 20,753 414 21,167
Note 5 2025 2024
Expenditure on Unrestricted Designated Total Unrestricted Designated Total
Raising Funds Funds Funds Funds Funds Funds Funds
£000 £000 £000 £000 £000 £000
Investment management:
property 332 - 332 430 - 430
- -
stock exchange 2,485 2,485 2,422 2,422
Property repairs and 347 - 347 275 - 275
maintenance
Support costs 88 - 88 152 - 152
Total 3,252 - 3,252 3,279 - 3,279
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 6 2025 2024
Expenditure on Unrestricted Designated Total Unrestricted Designated Total
Charitable Activities Funds Funds Funds Funds Funds Funds
£000 £000 £000 £000 £000 £000
Support for ministry
- -
Bishops 1,430 1,430 1,204 1,204
Communications 334 27 361 213 - 213
- -
Clergy pension contributions 3,074 3,074 2,968 2,968
Clergy property
- - - -
Brecon Deanery costs 1,000 1,000
Diocesan inspector 502 - 502 493 - 493
costs
Episcopal residencies 130 - 130 33 - 33
Ministry training - - -
3,288 3,288 3,322 3,322
St Padarn’s Institute
Mission and ministry 656 - 656 514 - 514
Safeguarding 512 - 512 393 - 393
Sundry clergy benefits 2 - 2 2 - 2
- -
Support costs 1,420 1,420 1,468 1,468
Total 11,348 27 11,375 11,610 - 11,610
Support for dioceses and parishes
Church Growth Fund - 2,341 2,341 - 1,017 1,017
Emergency Aid Fund - 94 94 - 715 715
- -
Evangelism Fund 1,108 1,108 1,161 1,161
Partnership Funding 2,704 92 2,796 2,335 - 2,335
Repairs and extensions - 432 432 - 280 280
to churches
Structural Resilience Fund - 3,575 3,575 3,700 - 3,700
Support costs 2,136 55 2,191 1,861 68 1,929
Total 4,840 7,697 12,537 7,896 3,241 11,137
Other church property
Redundant churches 3 - 3 - 663 663
Church sales regulations - 333 333 - 345 345
Climate change fund - 39 39 55 71 126
Other property costs 5 - 5 30 - 30
Support costs 793 - 793 831 - 831
Total 801 372 1,173 916 1,079 1,995
Other financial support
Cathedrals funding 74 176 250 4 110 114
Grants to Anglican and 182 - 182 178 - 178
ecumenical bodies
Other support 97 - 97 83 10 93
Provincial court and
46 - 46 11 - 11
tribunals
Support costs 222 - 222 222 - 222
Total 621 176 797 498 120 618
Total charitable
17,610 8,272 25,882 20,920 4,440 25,360
activities expenditure
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 7 2025 2024
Support Support Governance Total Support Governance Total
Costs costs costs costs costs costs costs
£000 £000 £000 £000 £000 £000
Audit fees - 51 51 - 48 48
Defined benefit pension 231 - 231 285 - 285
scheme current service costs
Depreciation 52 - 52 19 - 19
IT costs, software and 539 - 539 535 - 535
subscriptions
Legal and professional fees 150 - 150 106 - 106
Meeting expenses 8 236 244 6 161 167
Office and premises 687 - 687 756 - 756
expenses
Other staff costs 72 - 72 124 - 124
Staff costs 2,588 188 2,776 2,315 169 2,484
Sundry* (152) 1 (151) 17 - 17
Travel and subsistence 58 2 60 50 2 52
Trustees expenses - 3 3 - 5 5
Trustee training - - - - 4 4
Total 4,233 481 4,714 4,213 389 4,602
* The sundry costs credit reflects net interest income on the defined benefit pension scheme.
Analysed between:
Raising funds 88 - 88 152 - 152
Support for ministry 1,360 60 1,420 1,468 - 1,468
Support for dioceses for
1,890 301 2,191 1,669 260 1,929
parishes
Other church property 793 - 793 831 - 831
Other financial support 102 120 222 93 129 222
Total 4,233 481 4,714 4,213 389 4,602
Support costs have been allocated on the basis of an estimated percentage of staff time spent on each charitable activity.
Unrestricted 4,659 4,534
Designated 55 68
Total 4,714 4,602
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Note 8**
## **Trustees Expenses and Remuneration**
No trustee received remuneration during the current or prior year in relation to their role as trustee.
2 trustees (2024: 1) received remuneration from the charity in connection with their office.
The Most Reverend A T G John who is an _ex officio_ member of the charity received benefits (including salary, employers pension contributions and benefits in kind) totaling £106,161 until August 2025 (2024: £71,312). The Most Reverend C Vann who is an _ex officio_ member of the charity received benefits (including salary, employers pension contributions and benefits in kind) totaling £32,427 from August 2025 (2024: £nil).
Trustee Chris Clarke is a director of Chris Clarke Surveyors Ltd of which the company received £1,800 (2024: £1,140) in fees in relation to the valuation of 3 properties.
12 (2024: 15) trustees were reimbursed for travel, subsistence and accommodation expenses incurred totaling £3,256 (2024: £4,993).
## **Note 9**
## **Employees**
## **Number of employees**
|**Note 9**
**Employees**
**Number of employees**|**Note 9**
**Employees**
**Number of employees**|
|---|---|
|The average monthly number of employees during the year was: 122 (2024: 116).||
|**Employment costs**|**2025**
**£000**
**2024**
**£000**|
|Wages and salaries|5,240
4,888|
|Social security costs|650
528|
|Pension costs|392
341|
|FRS 102 defned beneft pension costs|231
285|
|**Total**|**6,513**
**6,042**|
|**Key management personnel**
During the year the key management personnel of the charity of which there were 5 (2024: 5) received total benefts
(including gross salary, benefts in kind, employer’s National Insurance contributions and employer’s pension contributions)
totaling £693,456 (2024: £670,071).||
|**Other payments**
During the year the charity made seven redundancy, settlement and termination payments which totalled £147,794 (2024:
none). There were no amounts outstanding at the year end.||
|**Employees earning > £60,000**
**2025**
**2024**||
|The number of employees who received benefts (gross salary and benefts in kind)
over £60,000 were:||
|£60,000 – £70,000
8
11||
|£70,001 – £80,000
1
1||
|£80,001 – £90,000
4
3||
|£90,001 – £100,000
2
1||
|£160,001 – £170,000
1
1||
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 10 Leasehold Motor
Improvements Vehicles Total
Tangible Fixed Assets
£000 £000 £000
Cost
At 1 [st] January 2025 172 39 211
Additions - - -
At 31 [s] [t] December 2025 172 39 211
Depreciation
At 1 [st] January 2025 83 8 91
Depreciation charged in the year 44 8 52
At 31 [st] December 2025 127 16 143
Carrying amount
At 31 [st] December 2025 45 23 68
At 31 [st] December 2024 89 31 120
Note 11 Investment Property Listed Cash in Other
Fixed Asset Properties Unit Trusts Investments Portfolio Investments Total
Investments £000 £000 £000 £000 £000 £000
At 1 [st] January 2025 49,550 10,625 732,481 6,603 25 799,284
Additions - - 231,240 - - 231,240
Disposals - (2,000) (218,641) - - (220,641)
Revaluation 525 55 15,855 - - 16,435
Net movement in cash - - - 12,244 - 12,244
At 31 [st] December 2025 50,075 8,680 760,935 18,847 25 838,562
Historical cost 32,809 6,005 596,116 18,847 25 653,802
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## **Investment properties**
Investment properties were valued by Colliers at 31[st] December 2025 in accordance with the RICS valuation – Professional Standards 2014 and FRS 102.
**----- Start of picture text -----**
Note 12 2025 2024
Non Investment Properties £000 £000
Brought forward 241,585 246,531
Additions 4,888 4,475
Disposals (5,713) (6,729)
Revaluation 24,076 (2,692)
Carried forward 264,836 241,585
The above consists of:
Parsonages, bishops’ houses and sundry provincial property 238,757 200,908
Church halls 6,341 14,870
Glebe 14,438 20,607
Operational properties 5,300 5,200
Total 264,836 241,585
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 13 2025 2024
Debtors and Loans £000 £000
Accrued income 2,348 2,040
Loans 7,491 8,053
Other debtors 6,294 5,698
Prepayments 1,001 949
Total 17,134 16,740
Loan balances due > 1 year 7,486 8,022
Note 14 2025 2024
Creditors: Amounts Faling Due Within One Year £000 £000
Accruals 1,646 532
Amounts owed to special trusts 1,770 1,828
Creditors 1,643 2,051
Deferred income (note 15) 446 540
Other creditors 1,496 750
Other taxation and social security 613 807
Total 7,614 6,508
Note 15 2025 2024
Deferred Income Course Course
Income Rents Total Income Rents Total
£000 £000 £000 £000 £000 £000
Balance brought forward 12 528 540 6 422 428
Income received 264 3,533 3,797 271 3,731 4,002
Income released (266) (3,625) (3,891) (265) (3,625) (3,890)
Balanced carried forward 10 436 446 12 528 540
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Deferred income relates to course income and rental income received in advance and which relates to future financial periods.
**----- Start of picture text -----**
Note 16 1 [st] January 31 [st ] December 31 [st] December
2024 Gains 2024 Gains 2025
Endowment Funds
£000 £000 £000 £000 £000
St Michael’s College 5,070 130 5,200 100 5,300
Total 5,070 130 5,200 100 5,300
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St Michael’s college is held for the operation of an educational institution.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 17
1 [st] January 31 [st ] December
2025 Income Expenditure Transfers Gains 2025
Designated Funds
£000 £000 £000 £000 £000 £000
Capital
Church repairs 16,357 72 - (73) 1,381 17,737
capital reserve
Tangible fixed assets 120 - - (52) - 68
- - -
Non investment properties 236,385 28,451 264,836
Revenue
Cathedrals funding 13 - - - - 13
quinquennial inspections
Cathedrals funding - - -
1,373 (176) 1,197
key building repairs
Cathedrals funding 158 - - - - 158
project development
Church Growth Fund
- -
21,983 (2,341) 5,635 25,277
Approved Applications
Church Growth Fund
- - -
73,654 (63,654) 10,000
remaining
Church sales regulations 3,141 574 (333) - - 3,382
Climate change fund 1,000 - (38) - - 962
Communication of
100 - (27) - - 73
good news fund
Dilapidation reserve 300 - - (300) - -
Emergency aid 29 12 (94) 450 - 397
- -
Evangelism Fund 6,890 (1,108) (494) 5,288
Office move - - - 275 - 275
Overseas fund 28 19 - - - 47
Overseas students 1 - - - - 1
Partnership Funding 81 - (92) 189 - 178
Provincial priorities fund 328 101 - - - 429
Repairs and extensions 771 404 (432) - - 743
to churches
Structural Resilience Fund 16 - (15) (1) - -
Structural Resilience Fund
- - -
27,750 (3,560) 24,190
commitment
Website development 100 - (55) - - 45
Total 390,578 1,182 (8,271) (29,574) 1,381 355,296
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 17
1 [st] January 31 [st ] December
Designated Funds 2024 Income Expenditure Transfers Gains 2024
(Prior Year) £000 £000 £000 £000 £000 £000
Capital
Church repairs 15,427 86 - - 844 16,357
capital reserve
Diocesan parsonage (411) - - 411 - -
improvement fund
Pension equalisation - - - -
115,201 (115,201)
reserve
- - - -
Property reserve 43,906 (43,906)
Revaluation reserve 162,977 - - (162,977) - -
Tangible fixed assets - - - 120 - 120
- - - -
Non investment properties 236,385 236,385
Revenue
Cathedrals funding 13 - - - - 13
quinquennial inspections
Cathedrals funding - - -
1,483 (110) 1,373
key building repairs
Cathedrals funding 158 - - - - 158
project development
Church Growth Fund 11,935 - (1,017) 84,719 - 95,637
Church sales regulations 3,408 78 (345) - - 3,141
Climate change fund 524 - (72) 548 - 1,000
Communication of
100 - - - - 100
good news fund
Dilapidation reserve - - - 300 - 300
Emergency aid 371 72 (714) 300 - 29
- -
Evangelism Fund 8,213 (1,161) (162) 6,890
Overseas fund 19 19 (10) - - 28
Overseas students 1 - - - - 1
Partnership Funding - - - 81 - 81
Provincial priorities fund 327 1 - - - 328
Redundant churches (57) 21 (663) 699 - -
Repairs and extensions 656 395 (280) - - 771
to churches
COVID fund 84 - (68) - - 16
Structural Resilience Fund - - - 27,750 - 27,750
Website development - - - 100 - 100
Total 364,335 672 (4,440) 29,167 844 390,578
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Capital
Church repairs capital reserve Capital fund for church repairs and relates to the value of investments held within
our Common Investment Fund.
Tangible fixed assets Fund relates to the net book value of the charity's fixed assets.
Non-investment properties Fund relates to the valuation of the charity's non-investment properties.
Revenue
Cathedrals funding Funds allocated for quinquennial inspections.
quinquennial inspections
Cathedrals funding Funds allocated for key building repairs.
key building repairs
Cathedrals funding Funds allocated for project development.
project development
Church Growth Fund The charity made a £100m pledge to fund church growth projects over a 10 year
period, the fund relates to amounts available for distribution and draw down.
Church sales regulations Funds allocated from the sale of churches.
Climate change fund Funds allocated to support the climate change work of the charity.
Communication of good news fund Funds allocated to support the communication activities of the Archbishop.
Dilapidation reserve Funds designated regarding dilapidation costs, the fund has been undesignated
during the year due to no costs being payable.
Emergency aid Funds allocated for building emergencies.
Evangelism Fund Funds allocated for dioceses to act on evangelism and church growth.
Office move Funds designated for office move.
Overseas fund Funds allocated for overseas aid.
Overseas students Funds allocated for overseas students.
Partnership Funding Fund relates to the 2024 partnership funding element not claimed by Bangor
Diocesan Board of Finance. This fund will be expended during 2026.
Provincial priorities fund Funds allocated for projects in support of the Church in Wales priorities statement.
Redundant churches Funds allocated to support costs arising in the maintenance of redundant churches.
A transfer was made at the 2024 year end from general funds due to the balance
being in deficit at the end of 2024.
Repairs and extensions to churches Funds allocated to parishes via grants regarding repairs to church buildings.
Structural Resilience Fund Funds remaining to be distributed to support operational stability until funding period
ends in June 2032.
Website development Funds allocated for website development which is due to take place during 2025/26.
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Transfers between designated funds represent internal reallocations approved by Trustees and do not impact total funds, only how resources are designated.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 18 2025
Analysis of Net Assets Unrestricted Designated Endowment Total Funds
Between Funds £000 £000 £000 £000
Tangible assets - 68 - 68
Investments 742,871 95,691 - 838,562
-
Non investment properties 259,536 5,300 264,836
Current assets 14,228 - - 14,228
- -
Defined benefit pension scheme 5,862 5,862
- -
Clergy pension scheme (138,900) (138,900)
Total 624,061 355,295 5,300 984,656
2024
Unrestricted Designated Endowment Total Funds
£000 £000 £000 £000
Tangible assets - 120 - 120
Investments 645,212 154,073 - 799,285
-
Non investment properties 236,385 5,200 241,585
Current assets 18,816 - - 18,816
- -
Defined benefit pension scheme 4,481 4,481
- -
Clergy pension scheme (137,100) (137,100)
Total 531,409 390,578 5,200 927,187
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## **Note 19**
## **Defined Contribution Pension Scheme**
The charity operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £267,560 (2024: £252,962). Amounts outstanding at the year end totaled: £51,414 (2024: £14,226).
## **Note 20**
## **Defined Benefit Pension Scheme**
The charity operates a defined benefit pension scheme arrangement called ‘The Representative Body of the Church in Wales Staff Retirement Benefit Scheme’ (the Scheme).
The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death. The Scheme closed to new members on 31[st ] March 2017.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out every three years to determine whether the Statutory Funding Objective is met.
As part of the process the Employer must agree with the trustees of the Scheme the contributions to be paid to address any shortfall against the Statutory Funding Objective and contributions to pay for future accrual of benefits.
A full actuarial valuation of the Scheme was carried out as at 31[st ] March 2024 by Atkin Pensions and the next valuation of the Scheme is due as at 31[st ] March 2027.
The results of the 2024 valuation have been updated by an independent qualifying actuary Atkin Pensions to 31[st ] December 2025 allowing for cashflows in and out of the Scheme and changes to the assumptions over the period.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 20 continued 2025 2024
£000 £000
Defined Benefit Pension Scheme
Retirement benefit obligations 5,862 4,481
Total 5,862 4,481
Key assumptions 2025 2024
Discount rate 5.65% 5.55%
Inflation assumption RPI 2.70% 2.95%
Revaluation in deferment 2.70% 3.05%
Salary increases 2.15% 2.55%
Mortality assumptions
The assumed life expectations on retirement at age 65 are:
Retiring today: Males 22.0 21.7
Retiring today: Females 24.2 24.1
Retiring in 20 years: Males 23.2 22.9
Retiring in 20 years: Females 25.6 25.6
Amounts recognised in the profit and loss account: £000 £000
Current service cost 231 285
Net interest on defined benefit liability (251) (64)
Expenses 57 62
Total costs 37 283
Amounts taken to other comprehensive income:
Experience (losses) and gains on scheme liabilities (187) 148
Demographic assumptions (losses) and gains on scheme liabilities (110) 70
Financial assumptions gains and (losses) on scheme liabilities 772 2,540
Experience gains and (losses) on scheme assets 559 (63)
Total 1,034 2,695
The amounts included in the balance sheet arising from the charity’s obligations in
respect of defined benefit plans are as follows:
Present value of defined benefit obligations (16,697) (16,447)
Fair value of assets 22,559 20,928
Surplus in scheme 5,862 4,481
Movements in the year of defined benefit assets:
Assets brought forward 20,928 19,796
Interest income 1,159 927
Actuarial gain / (loss) on assets 559 (63)
Benefits paid (539) (831)
Expenses paid (57) (62)
Contributions by the employer 384 1,042
Contributions by scheme members 125 119
Assets carried forward 22,559 20,928
Changes in the present value of the defined benefit obligation
Opening defined benefit obligation 16,447 18,769
Interest costs 908 863
Actuarial (gain) (475) (2,758)
Benefits paid (539) (831)
Current service cost 231 285
Contributions 125 119
Closing defined benefit obligation 16,697 16,447
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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The fair value of plan assets at the reporting period end was as follows: 2025 2024
Equity instruments 53% 50%
Bonds 46% 48%
Property 0% 0%
Cash 1% 1%
Total 100% 100%
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## **Note 21**
## **Clergy Pension Provision**
The clergy pension provision was established in accordance with the advice of our actuaries, to meet liabilities for clergy and surviving spouses and civil partners’ pensions and gratuities.
The actuarial valuation and basis of annual provision is reviewed every three years.
At the date of the last triennial actuarial valuation at 31[st] December 2025 undertaken by Quantum Advisory, the liability of the Representative Body for past service on the current funding basis was assessed using a discount rate of 5.2% at £138.9 million, which represented 16.3% (previously 19.2%) of total funds at that date.
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The key financial assumptions used for the full actuarial valuation at 31 [st] December 2025.
2025 2024
£000 £000
Retirement benefit obligations 137,100 147,500
Current service contributions 3,142 2,968
Other current service contributions 128 120
Income allocated 3,618 3,415
Pension payments to retired clergy (5,740) (5,574)
Pension payments to surviving spouses and civil partners (1,599) (1,562)
Gratuity payments of retired clergy (1,396) (1,246)
Transfer payments (30) (14)
Administrative expenses (159) (108)
Movement in provision 3,836 (8,399)
Balance carried forward 138,900 137,100
Key assumptions 2025 2024
Discount rate 5.2% 5.3%
Inflation assumption RPI 2.8% 3.3%
Inflation assumption CPI 2.4% 2.6%
Stipend increases 2.9% 3.1%
Pension increases - stipend linked 2.9% 3.1%
Pension increases - RPI up to 5% per annum 2.8% 3.2%
Deferred revaluation 2.8% 3.2%
Post retirement morality assumptions
The assumed life expectations on retirement at age 65 are:
Retiring today: Males 21.5 21.5
Retiring today: Females 23.8 23.9
Retiring in 20 years: Males 22.5 22.5
Retiring in 20 years: Females 24.9 25.0
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
## **Note 22**
## **Special Trusts**
The Representative Body is the Trustee of the Church in Wales Common Investment Fund. The unit holders in the Common Investment Fund are individual funds held on behalf of beneficiaries, where the Representative Body is the managing or custodian trustee of the funds.
The aggregate value of these special trusts at 31[st] December 2025 was £71,678,718 (2024: £67,064,154) and was invested in stock exchange securities and the Church in Wales Common Investment Fund. The income on these funds was £2,289,465 (2024: £2,265,623) and was wholly distributed to beneficiaries.
## **Note 23**
## **Custodian Trustee**
The Representative Body is the custodian trustee of 9 parsonages.
## **Note 24**
## **Related Party Transactions**
Due to the nature of the Representative Body’s operations and its membership being drawn from a wide range of clerical and lay members, it is inevitable that transactions will take place with organisations in which a member of the Representative Body may have an interest.
||The most signifcant transactions are as follows:
The six Diocesan Boards of Finance received the following funding:
Partnership Funding
Structural Resilience Fund
Evangelism Fund
Church Growth Fund
At the year-end they also had loans outstanding of:
ClergyRetirement HousingLoan Scheme|**2025**
**£000**
2,796
3,575
1,108
2,341
1,182|**2024**
**£000**
2,335
3,700
1,161
1,017
1,532||
|---|---|---|---|---|
## **Note 25**
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Operating Leases
At the reporting date the charity had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2025 2024
£000 £000
Within one year 321 499
Between two to five years 35 739
Total 356 1,238
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## **Note 26**
## **Post Balance Sheet Events**
After the reporting date, the organisation entered into a new lease agreement with a fixed term of ten years. The cumulative commitment under this lease is expected to exceed £2.5 million. This new lease arrangement represents a non-adjusting event occurring after the reporting period.
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Annual Report and Accounts 2025 **|** The Representative Body of the Church in Wales
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Note 27 2024 2024 2024 2024 2023
Unrestricted Designated Endowment Total Total
Prior Year Statement of
Funds Funds Funds Funds Funds
Financial Activities
£000 £000 £000 £000 £000
Income from:
Donations and legacies - 1 - 1 327
Charitable activities income 571 257 - 828 1,251
Investment Income 20,753 414 - 21,167 22,643
Total income 21,324 672 - 21,996 24,221
Expenditure on:
- -
Raising funds 3,279 3,279 3,397
Charitable activities 20,920 4,440 - 25,360 22,121
Total expenditure before clergy
-
pension provision movement 24,199 4,440 28,639 25,518
Clergy pension provision movement - -
(4,984) (4,984) 12,390
Total expenditure after clergy -
19,215 4,440 23,655 37,908
pension provision movement
Net income / (expenditure) before
-
investment gains / (losses) 2,109 (3,768) (1,659) (13,687)
Net gains on investments 64,657 844 - 65,501 47,321
-
Net income / (expenditure) 66,766 (2,924) 63,842 33,634
Transfers between funds (29,167) 29,167 - - -
Other recognised gains / (losses):
(Losses) / gains on revaluation of fixed
assets for the charity’s own use (7,529) - 130 (7,399) 3,736
Actuarial gain on defined benefit 2,695 - - 2,695 390
pension schemes
Net movement in funds 32,765 26,243 130 59,138 37,760
Reconciliation of funds
Total funds brought forward 498,644 364,335 5,070 868,049 830,289
Total funds carried forward 531,409 390,578 5,200 927,187 868,049
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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