2022-12-31-accounts

LEEDS DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 LEEDS DIOCESAN BOARD OF FINANCE Company number- 8823593 Registered charity number- 1155876

LEED5 DIOCESAN BOARD OF FINANCE TABLE OF CONTENTS Page Numbers Legal Objetts Strategic Report.. Strategic Aim5 Objectives for the year Activities and Achievements in the year Future plans Financial review Principal risks and uncertainties 13 Structure ènd Governance 14 Trustees, Responsibilities 20 Administrative deLiils 21 Independerit Avdiiors Report 23 Statement of Financial Activitie5 26 Income and Expenditure Account 27 Balance Sheet 28 Cash Flow Statement 29 Notes to the Financial Statements 30

LEEDS DIOCESAN BOARD OF FINANCE TRUSTEES REPORT 2022 The Trustees, who are 81so Directors for the purposes of company12w, present thelr annual report, tO8ether with the audited financial statements, for the year ended 31 December 2022. The Direttors/Trustees a￿ one and the same and in signing a5 Trustees they are also signing ihe strategic report 5ettions in their capacity as Directors. This combined report satisfies the legal requirements for: A Director5, Report of a charitable company,. A Stralegic Report under the Companie5 Act 2006- and A Trustees, Annual Report under the Charities Act 2011. LEGAL OBJECTS The Diocese of Leeds is one of 41 Dioceses which cover the whole of England. The Diocese covers West Yorkshire, the western part of North Yorkshire, and parts of South Yorkshire, Lancashire and County Durham. The Diocese comprises five Archdeaconries which form the Episcopal Areas. It covers an area of around 2,425 square miles, housing a population of around 2,642,400. The Diocese has 598 church buildin85 in 455 parishes with 330 stipendiary clergy, 82 self-5UPPOrting clergy and 450 clergy with Permission To Officiate I"PTO"l along wlih 354 Readers, 85 authorised lay pastoral minsters and 41 chaplains. There are also 240 Church of England schools and 11 Multi-Academy Trusts servin8 some 64,0[￿ pupils within the Diocese. The Leed5 Diocesan Board of Finance's I"LDBF"I principa1 objective is to promote, assist and advance the work of the Church of England in the Diocese of Leeds by acting as the financial executive of the Leeds Diocesan Synod. The LD8F has the following statutory responsibilities.. The management of glebe property and investments to generate income to support the c05t of stipends arising from the Endowment and Glebe Measure 1976.. The repair of benefice houses as the Diocesan Parsonage Board IAnder the Repair of Benefice Buildings MeasLJre 1972,. The management of investments and the custodians of asset5 relating to church schoo15 under the Diocesan Board of Education Measure 1991,. and The custodian5 of permanent endowment and real property a55et5 relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils I"PCC"l as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956. The strategic priorities of the company are established by the Diocesan Synod in communication with Deanery Synods, PCC5 3nd the Bishop of Leeds lin respect of his responsibility for the provision of the ture of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well a5 wilh ihe church nationally.

LEEDS DIOCESAN BOARD OF FINANCE STRATEGIC AIMS The main role of the LDBF is to identify and manaEe the financlal aspects of ministryand mission within the Diocese, so as to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop's Council and parishes to further the mission and strategic priorities in the Diocese. LDBF'5 principal activity is to promote, facilitate and as515t with the work and purposes of the Church of England for the advancement of the Christian faith in the Diocese of Leeds. LDBF'S strategy for achieving its objectives is to develop and maintain a sound financial structure to enable it to continue sUPPOrting the clergy through the payment of stipends. manage parsonages and other ministerial housing, and also by providing otherf3cilities and resources in support of the ministry of both clergy and lay people in parishes across the Diocese. Diocese of Leeds Strategy The Diocese of Leeds has a vision for confident Christians, who are part of growing Churches and transforming communities. We want to be faithful to our calling to be good news, share the Gospel and serve with steadfast purpose the communities in which we live. That vision of confident Christians, growing churches and transforming communities has been at the heart of the strateEiC direction of the Diocese for a number of years. It set the tone and provided much of the backbone for ihe diocesan strategy which was developed in 2019 and which contained five clear goals. l. Thriving as a Distinctive Dlocese Reimagining Ministry Nurturing lay discipleship 4. Building leadership pathways 5. Growing young people as Christians These goa15, conceived from a place of stability in 2018119, identified where our hope lay and our ambitions should be focused. Progress was made in some areas yet despite committed intention, implementation of the strategy across the Diocese and particularly at parish level has been difficult. The strategy was still in its infancy at the start of the Covld-19 pandemic. In response, parishes moved from future thinking to Su￿1Val mode. Many are still recovering. Consequentlyi not only did the appetite for enga8ement reduce, but a150 the contexl in which parishes were operating shifted. Whilst the aspiratlons do not change, the situation on the ground does. The strategy as previously articulated and drafted was too complex and rigid to meet the needs of the present reality and galvani5e extensive parish engagement. A fresh artlculatign of the key aims and approach was therefore needed. In doing so it provided an opportunity to reset and retell the strategic story of how we will support our vision and deliver on becoming simpler, humbler and bolder. Introduclng Barnabas The early church were intentional in how they shared the Eood news and how they organised themselves. Inspired by the Holy Spirit they prayed for, equipped, mentofed. tzught and encouraged the local church. Integr31 in this approach was Barnabas. Although called Joseph, his nickname a5'5on

LEEDS DIOCESAN BOARD OF FINANCE of Encouragement, stuck. Barnabas wa5 intentionally and prayerfully sent. He not only shared the gospel and taught the disciples. but he modelled how best to support others in doinE the same thing. Barnabas exemplifie5 the approach we want to take as a Diocese as we seek the Holy Spirit'5 help and guidance in ensuring every church has the chance of moving forward in mission, ministry and SLtstainability in a way that is intentional, prayerful and possible. There is a huge amount of activity taking plate in the diocese. with clergy and lay striving to share Jesus and ensure presence in every parish. There is much for us to be thankful to God for. Yet we also know there are places where, despite the hard work of the faithful, more 5￿pport and help are needed. The￿ are also places where we can no longerjust do thing5 in the same way. That support requires us to be intentbonal in our action and generous with our effort. But it also requires us to make the best use of the finite resources we have available ond to ensure we are using them in a way that maximlses value for the kingdom. It Is here that Barnabas.. Encouraging Confidence intersects wlth that which has gone before and provides the alignment and catalyst to move u5 forward. 8arnabas becomes the strategic vehicle (the Howll for achieving our vision of confident Christians, growing churches and transforming communities Ithe What and the Why). It enables the achievement of the goa15 previously set, it resets the frèmework of 'How' those might be achieved. This is through moving away from an explicit focus on initiatives to instead providing intentional and accessible support to encourage confidence. in the context parishe5 find themselves. Crucially it brings the needs of the parishe5 into greater prominence, enabling engagement and buy in from them Ithe Whol. Put another way - Barnabas sets an overarching strategic framework around which the Diocese can intentionally support the mi55ional needs of parishe5 and can bring a focus of revitalisation, growth and sustainability. It enables us to continue to respond to the missional and financial challenges, which the diocese faces over the coming decade. Identifying Priorities Within this framework there is freedom to purposefully invest in priority areas, knowin8 that targeted work in these specific areas Igeographieal, demogiaphit or indeed socio-economic) will bring benefit not only to those areas but to surrounding and similar communities a5 the work becomes established and the learning shared. This approach to change enable5 US to drive forward gigntrficant change in a number of places whilst maintaininE progress at a macro level to achieve the six bold calls of the Church of England vision and strategy Isee below).. to double the number OAchildTen (Jnd young acrlve dNsciples to become o church thatfully represents the communities we serve ftn age ond diverslty to revitolise the pOr￿h system to Create new Christion cofflmunities to release Anglicons to live as disciples in the whole of life to support locol churches being estublished us hubs offormution I httPS'.I'n)br.org12W71091demystifying-strategy-the-what

LEEDS DIOCESAN BOARD OF FINANCE Barnabas means we can be confident in God's unfalling love for us and the church. As we seek to live as confident Christians we want to: Be confident in our mission - support for churches to become conficfent irh their use of their building, financial and time resources,. c¥eatinE more opportunities to be good news in our communities. A parish system revitoli5edJor mission Be confident in our future- ensurin8 our levels of clergy deployment are fit forthe future. The Project enables us to make deployment decisions in a mission led way that can 8ive clergy and thurches the confidence that the Diocese is commttted to thelr thrNing. A church which is younger ondfully represents the communities we serve Be confident in our leadership - giving significant and specific 5UPPOrt around leadership and mentoring in the church, both for clergy in their roles, but also for church teams moving forward in misslon. Christions envisioned, resourced L7nd released to live a5 di5ciple5 of Jesus Christ, wirh churches being communitie5for initial t7nd ongoingformotlon Be confident in our witness - encouraging sUPPOrt for all to be confident in living and telling the good news of Jesus in a rapidly changing world. Doubling the number of children ond young octive disciple5 whilst revitolising and planting worshipping communities Initially our focus will be on achleving this through seven streams of intervention that have been identrfled for parishes and their leader5 to engage in.. Leadership development for clergy Mi55ional leadership development New congregations in the parish Strategic grafting for revitalization Buildings Governance Stewarclship and Treasury OBJEcfivES FOR THE YEAR The objectives that were set for 2022 were.. Supporting churches and schools as they look to move forward followiftg the challenges presented by Covid-19-, The continued implementation of the Diocesan Strategy and the use of it as a framework for future mission planning., Maintained focLF5 on supporting churches in children and youth engagement Developing sustainable models of ministry that reflect our parish needs and enable us to support growing churches. using the Church Support and Deployment work to drive this,. The continued development of the Resource and Resourcing Church models across the Diocese: The active support of all Church schools and academies to be deeply Christian plates of learning, with strong, transformational relationships between parish and school community..

LEEDS DIOCESAN BOARD OF FINANCE Identifying new opportunities to utilise notional church funding to enhance mission across the Diocese,- Reviewing supplier tontracts for key diocesan services and ensuring they provide value for money ProEres5ing work on the Parish Sh3re Review; and Establishin8 and enhancing the work of the DBF sub committees. Through carrying out the* objectives and in promoting the whole mission of the ch4Jrch Ip3storal, evangelistic, social and ecumenicall the Trustees are confident Ihaving had regard to Charity Commission guidance) that LDBF delivers public benefit through community engagement, resourcing education and supporting those in need both spiritually and physically. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Support for the Diocese's mission and strate8ic aims is delivered by the Bishop and his senior team through the LDBF Board. The team 15 5UPPOrted by a number of key advisers including Legal, HR, Finance, Education, Property and Safeguarding. The role of those employed to work in the central support of the Diocese is largely to: 51JPPOrt and enable parishes in their engagement with their communities,. advise and support the Synod. Leed5 Board. Bishop's Staff Team and Board of Education in the formation of policy for the Diocese,. support church schoo15, further and higher education institutions in terms of governance, religious education and collective worship. and buildings development- ensure silltable provision and training for the safeguarding of children and vulnerable adults,. train and advise those holding positions of office and leadership in the Diocese,. support the discernment, selection. recruitment, and training for those entering licensed and auihorised mlnistry,. undertake the statutory work of the Church of England in the Diocese of Leeds and the statutory work of the LDBF,. and engage in the work undertaken nationally and internationally through support and representation on national boards, committees and working groups. These objectives have been broadly met with key achievements including= Successful bid for further investment of £4m over five years in the Bradford resourcing churches programme Imountains into Roads) which will see new congregations planted from five resourcin8 churche5,' Green rating5 for Leeds and Bradford resource church programmes, which are both on track for deltvering their aims,. A 5￿ccesSful ClerEY Conference was held in Liverpool in September- the first since Covid-19: Development of Barnabas.. EncouraEillE Confidence 2 revised strategic approach to ensure the delivery of the diocesan vision and to ensure ongoing confidence in the future of the Church of England. This work will become the dominant strategic focus in 2023,. The Ministry and Mission Teani continued further development of ministry pathways le.g. woikinE Wlth children and young people, Eco Mission and Occasional preachersl 3nd implemented the new national discernment process foi ordinands and Licensed Lay Minislers. Training was supported by the Digital Learning Platform, which achieved a total of some 2,5 members,. An increase in the number of schools signing up to the Enhanced SeNices Plan provided by the Diocesan Board of Education, the creation of a new Multi Academy Trust (Leeds Diocesan Learning Trystl to provide further support for schools wishing to join a trust and a return of a successful in person education conference attended by over 200 school leaders,.

LEEDS DIOCESAN BOARD OF FINANCE Completion of the Parish Share review with recommendations made to the Board and Synod and chan8es implemented in the 2023 Parish Share requests- Distribution of £715k energy sUPPOrt grants to 265 benefices, £118k in hardship grants to 165 clergy arbd lay employees in the diocese and £74k of building grants to 49 parishes,. A new diocesan website was commissioned and created to replace the previous version with a more vser-friendly version aimed at the clear and simple provision of information and resources for our clergy, lay leaders and parishes,. Installation of solar PV, cavity wall or loft insulatlon in 35 properties as part of our carbon net zero strategy,. The LDBF secured a national award a5 one of the top ten charity employers in the UK,. and Developed a new Defined Contribution pension offer for new and existing lay Staff. Volunteers The Diocese of Leeds is dependent on the huge number of people involved in church actlvrties both locally and at diocesan level. We believe th3t the number of active volunteers lor volunteer hours) given to the mission and ministry of the church is a key indicator of the health of a church. The service provided to a community through church volunteering also ha5 a significant impact on people's relationship to the church particularly at time5 of cri515. We greatly value the considerable time and support given by all the volunteers across the Diocese in pursuit of our mission. FUTURE PLANS The major budget element continues to be directed towards supporting ministry and mission in every parish. The Trustees will continue to set annual budgets a5 appropriate and in line with the reseNes policy. The onEoing objective is to resource Diocesan needs, as determined by Synod and informed by local and national Church institutions. In addition to the day-to-day activities of the LDBF. during 2023 we will.. Further refine Barnab3s and set out in detail the types of sUPPOrt which will be available for each of the Barnabas strands, bringing together existing areès of support and adding further elements as needed and identified,. Seek funding from the national church for Barnabas, whilst continuing to focus and deliver on out wider ministry responsibilities as well as our statutory and legal obligations,. Continued sUPPOrt for national funded resource ?nd resourcing church projects, along with wider establishment of portfolio board lo oversee strategic projects., Continue to focus on supporting churches in children and youth engagement, with a bid for specific resource lo support work in Wakefield as well as continued wider offers of helpi Progress plans to implement the recommendations of Lament into Action including seeking the appointment of a Racial Justice Officer,. Incre2se focu5 on Carbon Net Zero activities, including developing fundin8 plans and utilising National Church funds to provide focused support for churches, schoo15 and clergy properties,. Implement pla ns for maximisinE the potential of current property assets to support financial, environmental and social objectives as highlighted by the Archbishops, Commission's Coming Home Report- Actively support all Church schools and academies to be deeply Christian places of learnin& with strong, transformational relationships between parish and school community; Review supplier contracts for key diocesan SerVi￿S and ensuring they provide value for moneyi and Roll out recruitment hub as part of the SafeEuarding Dashboard.

LEEDS DIOCESAN BOARD OF FINANCE FINANCIAL REVIEW Financlal Performance In 2022 the LDBF recorded a net deficit before investment10gses of £2,264,000 on Ltnrestricted funds. This was El,104,000 worse than the prior ¥ear12021.' £1,160,000 deficit). The 2021 deficit included £950,0(X) Sustainability Grant from the Archbishops Council that did not occur in 2022, which combined by increased costs has driven the higher deflcit. These have been partly offset by increased income in a number of areas, including Parish Share, property and education services. The Parish Share request for 2022 was £15,464,00012021.. £15,474.0001 and receipts relating to the 2022 request amounted to £12,082,000 {2021- £11,597,000), representing a collection rate of 78.1% 12021- 74.9%). In additiori, Parish Share receipts of £181,￿0 were received against the hisiorical share out5tandin8 from previous years 12021.. £217,0001 and voluntary contributions of £166,000 were made12021.' £175,CX)01. Note 2 to the financial statements ha5 been prepared in accordanco with the guidance aEreed nationally to show the total receipt of income from parishes including receipts for a previous year. The Trustees are grateful to all parishes for their Parish Share payments arkd especially to those parishes that make their Parish Share payments by monthly instalments, which is e$5ential in controlllng the Diocese's cash flow. Expenditure from unrestrirted funds on charitable èctivities increased by £1,015,000 to £22,141,0(K) 12021: £21,126,WOI. This was largely due to an increase of £975,000 in clergy housin8 COSt5, together with £197,000 higher clergy Stipend and national insurance costs. Across all the funds, the capital value5 of investments fell by £4,198,00012021: £4.478,orx) increase). Of the decrease, £317,000 related to unrestricted inve5tments12021.' £674.IJOO increase). In order to support the unrestricted position, restricted funds were used to pay the 2022 clergy pension deficit contribution of £335,000. This, combined with the revaluation of the clergy pension5 scheme, has resulted in all deficits now being cleared. This and other fund transfers were made from restricted fund5 where expenditure was incurred within the general fund that was eligible for those funds. A property valued at £310,000 was transferred from Benefice Housing to unrestricted funds during the year followinB the completion of Pa51oral Schemes. The property will continue to be used to provide clerEY housing if ￿qUired but sold or ￿nted out if no ministerial need exists. Additionally, propertie5 totalling £2,781,000 and £4,220,000 have been transferred from the Pastoral Account and Stipends Capital Fund respectively to Benefice Housing to reflect the correct allocation of par50nage houses. Also, a property valued at £695,000 has been transferred from Benefice Housing to the Pastoral following the purchase of a replacement parsonage property. Likewise, and cash proceeds of £497,000 have transferred from Benefice Housing to the Pastoral Account following the sale of a parsonage property pending a pastoral scheme. As a result of the above, there was an overall funds decrease of £5,820,000 12021.. £4,026,OLX) increase) of which £1,993.00012021'. £3,155,000 increase) related to unrestricted funds. The Trustees have prepared a bLtdget for 2023 based on a 4% increase in stipend and salary costs lalbeit 5Yo has subsequently been awarded) and targetin8 a share collection rate of 82.6%. Including the transfer of £600,(￿0 from restricted reserves to fund applicable attivities, the budget Is for a deficit of £549,000. However. given the inflationary pressures on churches and the diocese alike, achieving the targeted share collection and maintaining costs within approved budBet5 will not be straightfornard.

LEEDS DIOCESAN BOARD OF FINANCE External factors affecting performance The Parish Share, which 15 contributed by Pccs toward5 the ministry and other costs of the Diocese, Is voluntary contribution and is budgeted to provlde 65% of the Dlocesan income in 2023. In addition, the Diocese ha5 Significant payments to the clergy and staff pension schemes in order to contrlbute towards covering pension fund deficits. Principal funding sources In 2022 62.6%12021: 60.1%) of unrestricted Income ofthe LDBF came from the Parish Share and 15.0% 12021: 20.4%) from the National Church. Flnancial sustainability LDBF has sound financial management, however, theTrustees remain consCIOUS Df the risks associated with the Parish Share fund collection and inflating cost5 and therefore its ability to adequatelv resource Diocesall activity. Whilst Parish Share collection has improved from the lows of 2020 and 2021, it remain5 below the pre-Covid-19 levels. It now seems unlikely that Parish Share will return to levels seen in 2019 for some time. However. the Trustees are confident this can be absorbed through a combination of reductions in expenditLsre; the receipt of National Church liquidity support (automatically provided to all qualifying diocesesl: and the appropriate utilisatlon of both unrestricted and reslricted reserves le.g. Pastoral Fund and Stipends Fund). Goln8 concem The flnancial statements have been prepared on a going concern basis. The Trustees have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessment5 in determining that this is the appropriate basis of preparation of the financial statements and have COll5idered a number of factors. As noted above, the legacy of the Covid-19 pandemic and the high inflation experienced in 2022 has created a number of financial challen8es that continue to be navigated. The Trustees are confident that the Balance Sheet remains strong and is sufficient to absorb deficits that may arise over the near term. A Cost Review was completed in early 2021, which provided a Structure to balance the budget overthe longer term. Additionally, in autumn 2022 the Board agreed a higher level of restricted fund transfers li.e. from the Pastoral Account, S554 Fund and Stipends Capital Fund where spending criteria is metl for up to five year5 to support the unrestricted position. As a consequence, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the fo¥eseeable future. Accordingly, tney continue to adopt the going concern bas15 in preparing the annual report and 3ccounts. Key Management remuneration policy The policy for remunerating key management is in accordance wlth ihe salary scales approved annually by the Leeds Diocesan Board. Signrficant PropÈrty Transactlons The net book value of land and buildings purchased and disposed of during the year totalled £1,927,￿0 and £1,805,000 respectively. The Leeds 8oaTd's policy 15.. to replace unsuitable properties. to accommodate the changing geographical deployment of clergy within the Diocese; to dispose of properties for which there is no ministry need and which do not provide reasonable investment returns- and io

LEEDS DIOCESAN BOARD OF FINANCE to realise development potentlal in some propertie5, thereljy usin8 our resources more effectively for the ministry of the Church. During the year two properties were purchased, one as a replacement parsonage property and the second for a suffragan bishop. Also during the year seven properties were sold. Of the properties sold, six were DBF properties (either being surplus curotes, properties or former vicarages transferred to the DBF as part of pastoral schemesl and one wès a parsonage property (with funds held in the Pastoral Fund pendin8 the completion of a pastoral schemel. Balance Sheet position The Trustees consider that the balance sheet together with details In note 23 show broadly that the restricted and endowmentfunds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net assets at the Balance Sheet date totalled £198.3m12021: £204.Iml, it niust be remembered that included in this total are pioperties, mostly in use for the ministry, whose value amounted to £157.5m12021.. £157.4ml. Much of the remainder of the assets shown in the Balance Sheet are held in restricted and endowed funds, and cannot necessarily be used for the general purposes of the LD8F. The 2022 accounts include the impact of the latest revaluation of the Clergy Defined Benefit Pension Scheme, revealed a surplus of £560m. Followin8 finalisation of the 31 December 2021 valuation, defitit contributions ceased with effect from l January 2023, since the Scheme w85 in surplus. Additionally, althoijgh the Lèy Workers Pension Scheme5 valuation at 31 December 2022 has not yet been completed, deficit contributions have ceased from l January 2023 and the remaining £12,0( liability has been written off given The Pension Boards confidence that the Schemes are now in surplus. Reserves poIScy Free reserves The Reserves Policy sets a target free reserves range of £4.Im to £5.6m. The lower bound is based on an analysis of income sources and their potential vulnerability a8ainst budgeted performance - the largest portion of this relating to Parish Share1£2.7ml. The upper bound remains based on 3 months budgeted unrestricted expenditure for the following fir)ancièl year. The T¥ustees define the free reserve5 as the Unrestricted Net Current Asset5 Less the Assets Held for resale plus the unrestricted unlisted investments. Actual free resetves as at 31 December 2022 totalled £5.2m12021.. £6.7ml. The reduction from 2021 is due to the operating deficit, the decrease in investment valuations and pension deficit contributions, partly offset by sale of unrestricted properties. Reserves lied up in fixed 055et5 The general fund comprises net assets amour>ting to £50.2m of which £47.9m relates to tangible fixed assets, £2.5m investments 8 nd £3.3m current assets. partly offset by long-term liabilities of £3.5m. Designotedfunds The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves ore reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. A description of each reseNe together with the intended use of the reserve 15 set out in note 23. At 31 De￿mber 2022 total designated reserves we li

LEEDS DIOCESAN BOARD OF FINANCE £794,00012021.' £954.CMJOI. The fLFnds Spent in the year 311 relate to the Carbon Reduction Fund where work has taken place to install solar PV, cavity wall and/or loft insulation in c.40 properties. Restricted endowmentfunds As set out in note 22 LDBF holds and odmini5ters a large number of restricted and endowment funds. As at 31 December 2022 restritted funds totalled £16.5m 12021.. £20.2ml and endowmeni funds totalled £130.7m12021'. £130.7ml. These funds are not available for the general purposes of the LDBF. Grant making policy Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry Isee note 12 to the financial statements). Grants are paid to other connected charities and to other charitable projetts, which support the furtherance of LD8F's objectives. Fundralslng The LD8F provides guidance to the parishes With regards to fundraisin8, but does not engage in fundraising activities itself. Due regard is given to the Fundraising Code of Practice set by the Fundraising Re8ulator when providing advice to the parishes. Investment pollcy LDBF'S investment policies are based on two key policies.. The Trustee5 have a policy to invest in accordance with the ethical investment policy of the Church of England Ethical Investment Advisory Group - this includes ensuring that investments are held in companies, which have high standards of corporate governance and act In a responsible way towards stakeholders. Long-term responsibilities - the Trustees are aware of their long-term responsibilities in respect of endowed funds arbd as a result follow a correspondingly prudent approach to investment decisions. Investment policy for long-term funds is aimed primarily at generating a sustainable income with due regard to the need for the presetvation of capital value and the possible need to realise investments to meet operational needs. The glebe investments are held for the purpose of raising income to achieve the maximum contribution possible to clerEY Stipends on an ongoing basis. Unrestricted and restricted fund investments are invested to balance income, liquidity and the maintenance of capital. The LDBF is empowered by its memorandum of association to invest monies not immediately required for its purposes. In addition, the LDBF acts as trustee of a number of trust funds, and these must be invested in accordance with the related trusts. The LDBF'S policy is to review regularly the assets of each fund for which il Is responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Note 23 provides details of the 8s5ets of each fund, tO8ether with the related purposes, and Note 17 summarises the movements in investments during the year. The CCLA investments total return performance against the benchma rks in 2022 were.. Fund -9.16Yo -7.80% Benchmark -10.12% -8.71% CBF Church of England Investment Fund CBF Church of Eng13nd Property Fund The five year performance against the benchmark and the benchmork composites are available from the CCLA and can be found on their website,. 5'.Ilwww.ccla.co.ukldocuineniOcbf-chur¢h<n land-funds uarterl -bulletin-S l-december-20221 Iload?inli 12

LEEDS DIOCESAN BOARD OF FINANCE PRINCIPAL RISKS AND UNCERTAINTIES The Trustee5 are responsible for the identification. mitigation andlor management of risk. To achieve this a risk register is maintained, which includes all risks identified, along with owners, mitigating actions and review dates. The register is maintained by manaEement on an ongoing basis and is subject to review by the Audit Committee twice a year and by the Trustees on an annual basis, though an updated register is presented to the Board at every meeting. The responsibility for delivery of the mitigation strategie5 identified by the register are delegated to the Diocesan Secretary. The risk register identifies key areas where the risk of either failure to act or the impart of the events is considered 'high' These areas and the associated mitigztion strategies are-. Porish Shure.. Collection Is considerably less thaft the budget resulting in a deficit on 8eneral funds. Accurate bud8etin8 of Parish Share receipts to enable expenditure to be appropriately aligned; Collection ststistics are produced and circulated on a monthly basi5 to track performance and identify potent131 issues earlyi Area personnel are expressly tasked with identifying, reporting on and supportlng those parishes where there is consldered to be a Significant risk of under-collection. Finonciol Risk.. The risk of failin8 to achieve approved budget or having insufficient liquid resource5 to meet liabilities as they fall due. The financial position is c105ely monitored at department level. with regular reports cir£L¢lated and regular meetings held with budget holders by the CFO and/or Finance Manager,. Regular reporting to FAIC and the LDBF; A Cost Review exercise was presented to the Board in February 2021. which identified three levels of cost savings to ensure a balanced b¥Jd8et is achieved over the next foL*r years; and A clear purchase èuthorisation process is in place. Sofeguording & Inclusion.- Where ihere is an occurrence of child. vulnerable adult or domestic abuse by someone workin8 for or on behalf of the Church or involved in the life of the Church. The Diocese employs a strong 5afeguardin8 team that includes specialist training support,. Policies are ? ligned wlth those of the national church: All parishes arp instructed to adopt and implement the National Church's safeguarding policy,. Training is compulsory for all relevant staff and volunteers failure to Complete the training results in the removul of the ability to undertake roles and funitions,. A new safeguardinE case management system has been implemented, along with a safeguarding dashboard for all parishes to Use: A full audit of live and past cases (Past Cases Review 21 was undertaken between 2020-2022. Independent reviewers considered all historic 3nd current files and did not identify any maierlal concerns or failings in relation to safeguarding,. and The Diocesan Safeguarding Advisory Panel, with an independent chair, continues to provide oversight on policy and practice. 13

LEEDS DIOCESAN BOARD OF FINANCE STRucfuRE AND GOVERNANCE Summary Informatlon about the strurture of the Church of England The Church of England is the established church and HM The King is the Sup¥eme Governor. It is organised into two provinces Icanterbufy and York) and 41 Dioceses. Each Diocese is a See under the care of a Bishop, who 15 charged with the cure of souls of all the people within that Eeographical area. This charge is shared with Priests within benefices and parishes, which are Sub-divisions of the Diocese. The National Church has a General Synod comprised of ex-officio and elected representatives from each Diocese. It agrees and lays before Parliament measures for the 8overnance of the Church's affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops, Council has a coordinating role for work authorised by the Synod: the Church Commissioners manage the historic assets of the Church of England,. and the Church of England Pension Board administers the pension Schemes for clergy and lay workers. Each Diocese is episcopally lead and synodically governed. The Diocese ilself is divided into 21 deaneries, each with its own Deanery Synod. Within each parish there is a parochial church council, which share5 Wlth the parish priest responsibility for the mission of the church in that place, in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod. Whilst each Dlotese is a separate legal ent¢ty, with a clear responsibility for a specific geographical area, being part of the Church of England requires antf enable5 each Diocese to seek support from and application for pannership with neighbourir¢g Dioceses. Parochial Church Councll I"PCC"I The PCC is the elected governing body of an individual parish which broadly is the smallest P8Storal area in the Churth of England. Typically, each parish has one parish church. The PCC is ma¢Je up of the incumbent as chair, the churchwardens and a number of elected and ex officio members. Each pcc Is a charity and, in compliance with the Charitles Act 2011, the majority of PCCS are ¢urrentFy exempt from reElStration with the Charity Commission. Since October 2008 all PCCS with gross income above £IOO.000 for the year are required to re8lSter with the Charity Commission. Except where shown, the transactions of PCCS do not form part of these financial statements. Financial statements of an individual PCC can be obtained from the relevant PCC treasurer. Parishes A benefice is a parish or 8roup of parishes setved by an incumbent who typically receives a stipend and use of a parsonage house from the Diocese for carrying out their duties. A deanery is a group of parishes over which an area dean has oversight and an archdeaconry is a group of deaneries for which an archdeacon is responsible. The Diocese is then the princip31 pastoral. and in turn financial and administrative, resource of the Church of England, encompassing the various archdeaconries under the spiritual leadership of the Diocesan Bishop. 14

LEEDS DIOCESAN BOARD OF FINANCE Organisatlonal structure The Leeds Diocesan Board of Finance I"LD8F"l is a compèny limited by guarantee INO. 8823593) and a registered charity (No. 11558761 governed by its Memorandum and Articles of Association. The companvs principal activity is to assist, promote and further the religious and other charitable work of the Church of En8land within the Diocese of Leeds. It was established in its present form in December 2013. The Members of LDBF under comp3ny law have a personal liability limited to £1 under thelr guarantee as company Members in the event of it being wound up. Governance and policy of the Diocesan Board of Finance is the responsibility of the Diocesan Synod members, who are also members of the company. Following the changes in governance approved in March 2015, the 8ishop of Leeds is the ex-officio Chair of the Diocesan Board of Finance. The trustees are the Diocesan Bishop, the Area Bishops, one Archdeacon, one Dean, the Chair of the House of Clergy of the Diocesan Synod, the Chair of the House of Laity of the Diocesan Synod, two Clergy and four lay people elecled from and by the members of Dlocesan Synod every three years, along with five people nominatetj by the trustees of the Diocesan Board of Finance and ratified by the Diocesan Synod. The most recent general elections were held in September 2021 and casual vacancy election5 in March 2023. The most recent trustee nomination was ratified in March 2022. The details of Trusiees who served during the year are set out on page 21. The Diocesan Synod, the statutory governing body of the Diotese, is an elected body drawn from across the Diocese with responsibility for setting the visioft and strategy of the Diocese, guided by the Leeds Board. The Diocesan Synod membership is elected every three years. the last gener81 elections hoving been April June 2021. The Synod elects six of the 21 Trustees of the Diocesan Boord of Finance, and ratifies the nomination of a further five members. The appropriate House of the Synod elects the Chair of their House. The Chair of the House of Clergy and the Chair of the House of Laity of the D￿Cesa￿ Synod are ex-officio members of the Leeds DBF. The LD8F is a separate legal entity with a governing memorandum and articles of assotiation and has clear responsibilities under both company and charity law. Additionally, the LDBF 15 subject to the direction of the Synod in all its activities, unless such direction is not in accordance with the governirkg document5 or statutory regulations. The maln featLJres of the Diocesan Synod approved governance model are: Diocesan Synod members ère the Members ofthe LDBF company. There is a sing5e Board that combines the functions of the Standing Committee of Synod, the LDBF, Bishop's Council, Diocesari Mission & Pastoral Committee and the Parsonages Board, thereby bringing together all major policy, strategy and financial issues into one foium. The core of this Board 15 a set of Trustees elected and selected for their skills, experience and background appropriate to the nature of the business in hand. Area Mission & Pastoral Sub-committees with delegated responsibilities enabling prioritie5 for Mission and Ministry within each episcopal area to be determlned locally, with local representation from deaneries. Advisory groups designed io enable lay and clergy input to all aspects of Diocesan business on an enduring or as required basis. Decision-making Structure The Board is the Standing Committee of the Synod and addresses the issues of Strategies, policies and priorities (including all financial aspects) needed to implement the overall vision. It is accountable directly to the Synod and includes all the functions of the tradttional statutory boards. 15

LEEDS DIOCESAN 80ARD OF FINANCE The Diocesan Mission and Pastoral Committee delegates significant responsibilities relating to mission 3nd pastoral activities to Area Mission & Pastoral Sub-committees, thereby enabling the Area Bishops with local representatives to formulate lotal priorities. Deanery Synods are represented on Area Mission & Pastoral Sub-committees and these are reflected in the Mission & Pastoral Constitution. The Diocesan Advisory Committee and the Strategic Safe8uarding Committee are highly 5pecialised in their work and content, and these remain as separate entities. Each Area Bishop is accountable to the Diotesan Bishop for the delivery of Mission and Ministry within the Area in line with delegated responsibilities laid down in Instruments and other formal measures. The Diocesan Secretary is accountable for the funrtions ot officers and employed staff in supporting parishes and Area Teams. Dio¢esan Synod has dele8ated the following functions lo the LDBF- Management of the funds and property of the Diocese: Preparation of annual estimales of expenditure; Advising on action needed to raise the income necessary to finance expenditure- Oversight of expenditure by bodies in receipt of Diotesan Synod's funds against estimates of expenditure approved by Diocesan Synod,. and Advising Diocesan Synod of the financial aspects of its policy and on any other matters referred to it. Committee structure Leeds Diocesan Board of Finance The Leeds Diocesan Board is the formal Bishop's Council. Diocesan Board of Finance, the Diocesan Mission and Pastoral Committee and Parsonage Board,. its membership is set out on page 20. Trustees are provided with induction guidance when first appointed and receive onEoing training, 65 appropriate. Some senior staff have job titles incorporating the title 'Director' but they are not Trustees of the company for the purposes of company law. Diocesan Board of Education I'DBE'I The DBE con51Sts of three LDBf Board members and ten nominated appointment5. The DBE oversees the setting of education strategy and reviews progress on an ongoing basis against this. The DBE h35 sub-committees with particular responsibility for Finance and Education Buildings. Diocesan Advisory Committee I'DAC") The DAC advises on matters affecting churches and place5 of worship such as the granting of faculties. architecture, archaeology, art and the history of pla￿S of worship, the use and care of places of worship and their corTrtents and the care of churchyards. Audit Committee The Audit Committee consists of five members, Dne of whom must be a member of both the Finance Assets and Investmenis Committee and the Leeds Board. The Chairperson is appointed by the Board and must not be the Chair of the Board or a member of FAIC. The Audit Committee responsibilities include considering the appointment of the external auditor, the review and agreeing of the annual report and accounts before submission to the Board and the review of the effectiveness of iniernal ontrol 5y5tems. Diocesan Mission & Pastoral Committee I'DMPC'I The membership of the Diocesan Mission and Pastoral Commlttee 15 the Leeds Board members with 16

LEEDS DIOCESAN BOARD OF FINANCE the exception of the five Area Bishops. The four Archdeacons who are non-Leeds Board members are ex officto members of the DMPC. The DMPC is a statutory body as set out in the Mission and Pastoral Measure 2011. The DMPC has dele8ated its functions to five Episcopal Area Mission and Pastoral Committees. Strategic Safeguarding Group The Group includes an independenl chairperson, the Diocesan Bishop, an Are) Bishop, a Cathedral Dean, an Archdeacon, the Lead Officer responsible for safeguarding, the Diocesan Secretary, the Registrar, the Bishop'5 Chèplain, individuals representing external ogencies involved in safeguarding and the Director of Ministry and Mission. The Group is responsible forthe oversight of policy, procedures, training and guidance to the director5, diocesan oiTicers and parishes on safeguarding matters and 15 accountable for Safeguarding work throughout the Diocese. Finance, Assets and Investments Committee I"FAIC"I The Committee's composition is at least three members of the Leeds DBF, plus up to seven members nominated by the Leeds Board. The Chairperson must be a member of the Leeds Board. The FAIC monitors the monthly management accounts, the preparation of the bud8et and sustainability plan, the pro8ress of major property sales, the perfomiance of investment assets and development of strategic projects. Property Committee The Committee consists of a Chairperson appointed by the Diocesan Bishop, the five archdeacons, one clergy person elerted by the House of Clergy of the Diocesan Synod, one clergy person (with relevant skills appointed by the Leeds Board, two lay people elected by the House of Laity of the Diocesan Synod, four lay people (with relevant skills) appointed by the Leed5 Board. one lay person appointed by the Leeds Board, one clergy person lor lay person if the Choir is clergy) co-opted by the committee and one lay person lor clergy if the Chair is layl co-opted by the commiitee The Property Committee is responsible for carrying out the deleBated functions of the Parsonages Board under the Repairs of Benefice Buildings measu￿ 1972 and under the term5 of its constitution and subject to any directions given by the Leeds Board, overseas the management, maintenance and upkeep of all property asset5 of the Leeds Diocesan Board of Finance. The committee is also responsible for the en%urinE the obligations of the Leeds Diocesan Board of Finance as custodian trustee are met in respect of properties held by parochial church councils. In practical terms this includes overseeing the development of polices and strategies, monitoring their implementation ènd reportin8 on this to the Board, and reviewing and approving property transactions. Delegatlon of day to day dellvery The Trustees and the committees and advisory and scrutiny groups which a55iSt them ir) the fulfilment of their responsibilities, rely upon the Diocesan Secretary and his colleègues for the delivery ol the day to day activities of the company. The Diocesan Secretary is given specific and general delegated authority to manage the business of ihe LD8F in accordance with the policies framed by the Trustees. Funds held as Custodlan Trustee The LDBF is the custodian trustee of zssets held on permanent trust by virtue of the Parochial Church Councils (Powers) Me8sure 1956 and the Incumbents and churchwarden5 (Trusts) Measure 1964 where the managing Trustees are parochial church councils and others. These a55ets are not aggregated in the finar)cial statement5 as the LDBF does not control them, and they are segregated from the LDBF'S own assets by means of a separ3te bank account and accounting system. Further details of financial trust assets, whose market value amounted to £16,807,000 at 31 December 2022. 17

LEEDS DIOCESAN BOARD OF FINANCE {2021.' £17,150,000), are available from the LDBF on request, and are 5ummarised in Note 29. Where properties are held as custodian trustee. the deeds are identified as such and held in safe custody. Related Parties Related partie5 include= The Archbi5hops' Council to which the LDBF pays a donation based on an apportionment system for funding national training of ordinands and the activities of the various national boards and councils. The Church Commissioners from which the LDBF receive5 grants and which acts on behalf of clergy with HM Revenue and Customs. The LDBF pays for clergy stipends through the Church Commissioners. The Church of England Pensions Board, to which the LDBF pays retirement benefit contributions for stipendiary clergy and employees. It also offers schemes to provide housin8 for clergy in retiremeni. Parochial Church Councils are all independent charities and the company has no control over them. The accounts of PCCS and deaneries do not form part of these financial statements. PCCS are able to influence the decision-making within LDBF and at Diotesan Synod level, through input of their Deanery Synods. Transactions with the main categories of related parties ère identified in appropriate places throughout the financial 5taternent5. Where materiality of the tr3nsattions merits more detailed disclosure thls is given in note 28 to the financial statements. Connerted charities The Trustees consbder the following to be connected charities: The cathedrals are the mother churches of the Diocese and legally constituted as separate charities. Trustees, report and financial statements may be obtained from the.. Wakefield Cathedral Office, Wakefield Cathedral, Northgate, Wakefield, WFI IHG. Ripon Cathedral Office, Liberty Court House, Minster Road, Ripon, North Yorkshire HG4 IQS. Bradford Cathedral Offlce, I Stott Hill, Bradford. West Yorkshire, BDI 4EFI. The Leeds Board is sole trustee to the charities and trusts given below. The Leeds Diocesan Board of Finance does not benefit from these charities and they are not included in the annual account5: Armley Deanery Schools Charity- support of schools in the Armley Deanery Brewin's Charity- support of clergy pensions Forcett Churchyard Trust- upkeep of Forcett churchyard Harrogate St Mary Cockroft Fund- upkeep of vault at All Saints Cemetery. Harrogate North Rigton School House Fund provision of special benefit5 and education in the school Stewart's Charity- 5UPPOrt to specified schools in Leed5 Romaldkirk & Cotherstone Fund- upkeep of churches in Romaldkirk and Cotherstone Whitkirk Deanery Curacy Houses Fund- upkeep of curacy houses in Whitkirk Wray Bequest- ecclesiastical purposes the parish of St Anne's Catterick Rachel Dixon Charity- support of widows or unmarried daughters of the clergy 18

LEEDS DIOCESAN BOARD OF FINANCE Other connected charities with which the Board co-operates in pursUIt of its tharitable objectives are: Bishop's Development Fund, Thornes Park Campus, Thornes Park, Wakefield, West Yorkshire, WF2 8QZ (Charity number 7005881 Bradford Diocesan Council for Social Aid, 17-19 York Place, Leeds, West Yorkshire, LSI 2EX Icharity number 2264361 Near Nei6hbours, Church House, 27 Great Smith Street, London, SWIP 3AZ Icharity number 1142426, Company rbumber 076033171 Wellspring5 Togethei, Church House, 17-19 York Place, Leeds, West Yorkshire, LSI 2EX (Charlty Number 1179481. Company Number 114236411 The assets of the above charities and trusts are held separately by themselves and are segregated from the ossets of the Company. 19

LEEDS DIQCE5AN BOARD OF FINANCE TRUSTEES, RESPONSIBILITIES The trustees Iwho are also directors of Leed5 Diocesan Board of Finance for the purposes of company lawl are responsible for preparing the Tru5tees' Report and the finarkcial Statements in accordance with applicable law ènd United Kingdom Accounting Standards Iunlteé Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of 3ffairs of the charitable company and of the Incomlng resources and application of ie50urces, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently: observe the methods and principles in the Charities SORP IFRS 1021; make jud8ement5 and estimates that are reasonable and priJdent- state whether applicable accountirkg Standards have been followed, subject to any material departures disc105ed and explained in the financial statements,. and prepare the financial statements on the going concern basis unles5 it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keepin8 proper accounting rocords that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 20Q6. They are a150 responsible for safe8uarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware= there Is no relevant audit information of which the charitable companvs auditor is unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware ol that information. The trustees are responsible for the maintenante and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the reparation and di55eminatiDrb of financlal statements may differ from legislation in other jurisdictions. 20

LEED5 DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS Trustees No Trustee had any beneficial interest in the company during 2022. The following Trustees were in post either durin8 the year andlor at the date of this report.. Chairman.. The Right Revd Nicholas Baines- Bishop of Leeds Ex-officio.. The Right Revd Anthony Robinson - Area Bishop of Wakefield The Right Revd Helen-Ann Hartley- Area Bishop of Ripon (resigned 03 February 2023} The Right Revd Paul 51ater- Bishop of Kirkstall Iretlred 31 January 20221 The Right Revd Arun Arora- Bishop of Kirkstall Ifrom 15 July 20221 The Right Revd Toby Howarth- Area Bishop of Bradford The Right Revd Jonathan Gibbs- Area Bishop of Hudder5field (resigned 24 May 2022) The Revd Rachel Firth- Chair of the House of Clergy of the Diocesan Synod Mr Matthew Ambler- Choir of the House ol Laity of the Diocesan Synod Elected by the Deans: The Very Revd John Dobson - Dean of Ripon Cathedral Eletted by the Archdeacons.. The Ven Paul Ayers Elected bv.. Synod House of ClerEy- The Revd Nigel Wright (resigned 16 November 20221 The Revd Eve Ridgeway Ifrom 01 March 20221 The Revd Gary Waddington (from 18 April 20231 Synod House Df Laity.. Mr Andrew Maude Mr Christopher Thompson Mr Richard Pattinson (from 18 April 20231 Mr Roger Lazenby (from 18 April 20231 Nominated by the Board.. Canon Mr Irving Warnett Mrs Marilyn Banister Canon M rs Jane Evan5 Mrs Jan Ali Ifrom 12 Marth 20221 The Revd Canon Kathryn Fitzsimons (resigned 16 March 20221 Senior staff and advisers Diocesan Secretary Chief Financial Officer Director of Ministry and Mission Director of Education Director of Strategy Implementation & Head of Property Director of People and Engagement Director of Church Revitalisation Director of Communications Jonathan Wood Geoff Park The Revd Canon Andrew Norman Cènon Richard Noake John Knox Anna Mitchell The Revd Jude Smith Chiis Tate 21

LEEDS DIOCESAN BOARD OF FINANCE Registered Office: Church House, 17-19 York Place, Leeds, LSI 2EX Principal Bankers Santander, 44 Merrion Street, Leeds, LS2 8JQ Yorkshire Bank plc, 6-10 Northgate, Wakefield, WFI ITA Natwest Bank plc. Leeds City Office, 8 Park Row, Leeds, LSI IQS Barclays Bank plc, PO Box 245, 10 Market Street, Bradford, BD I IXW Auditors Saffery Champness LLP, Mitre House, North Park Road, Harrogate HGI 5RX Diocesan Registrar David Whitaker, Lupton Fawcett LLP Yorkshire House, East Parade, Leeds, LSI 5BD Investment advisers CCLA Investment Management Ltd Senator House, 85 Queen Victoria Street, London, EC4V 4ET Glebe Agents Dacre Son & Hèrtley, Station Road, Otley, LS213DR Stephenson & Son, York Auction Centre, Murton, York, Y019 5GF Cartar Jonas, 9 Bond Street, Lee(Js LS12JZ Insurance Brokers PIB Insurance Brokers, Poppleton Grange, York, Y026 6GZ Principal Insurers EIG, Beaufort House, Brunswick Road, Gloucester, GLI IJZ In approving this Trustees, Report, the Trustees are also approving the Strategic Report included on pages 4- 12 within their capacity as company directors. ON BEHALF OFTHE TRUSTEES JLnn. LJS The Rlght Revd Nicholas Baines Chairman 25 May 2023 Jonathan Wood Secretary 25 May 2023 22

LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORTTO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Oplnlon We have audlted the financial statements of Leeds Diocesan Board of FiTrance for the year ended 31 December 2022 which comprlse the statement of financial activities. balance sheet and the cash flow statement, and notes to the financlal staiements, including significant accountin8 policies. The financial reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accountin8 Stanijards, including Financlal Reporting Standard 102. the Financial Reporting Standard applicable in the UK and Republic of lieland Iunlted Kingdorn Generally Accepied Accounting Practice). In our opinion the financial statement5'. give a true and fair view of the charitable iompan¢s state of affairs as at 31 De￿mber 2022 2nd of its incoming resources and application of resources, includirB its income and expenditure, for the year then ended,. have been properly Prepared in accordance with LIn1t￿ KinBdom Generally Accepted Accounting Practice- and have been prepared in accordance with the Companies A¢1 2006. Ba515 for opinion We conducted our audit in accordance wlth Internatlonal standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under thpse StsnLlards are further described in the Auditor's responsibilities for the audit of the financial statemenis section of our report. We are independent of the charitable company In ccordance with the ethical requiTements that are relevant to our audit of thè financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethit31 responsibilities in accordance with these requlrements. We belleve that the audit evidence we havè obtained is sufficient and appropriate to provlde a basls for our opinion. Conclusions relating to golng ton£ern In auditing the financi31 statements. we have toncluded that the trustees, use of the going concern basis of accountin8 in the prép3ration of the linancial statements is appropriate. Basèd on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individu8lly or collectively, may cas significant doubt on the charitable company's ability to continue as a 80ing concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibillties and the responsibilities of the trustees with re5pert lo going concern are described ITh the relevant section5 of this report. Other Information The trustees are responsible for the other infofmation. The other informatlon comprises the information included in the annual report, other than the financial statements and our auditorf5 report the￿trn. Our opinion on the financial statements does not cover the other informatitsn and, except to the extent otherwise explici(Iv stated in (>ur report, we do not expre55 any form of assurance conclusion thereon. Our responsibility Is to read the other informètion and, in doinB so, consider whether the other infomTratSon is aterially inconsistent with the financial 5taternents or our knowledge obtained in the course of the audit or otherwise appears to be materially mis5t8ted. If we ideTrtify 5ych material inconslstencies or appareni mater4al misstaternents, we are requtred to determine whether this gives rise to a marerial mlsstaternent In the financlal statements themselves. If. based on the work we have performed, we concludg that there is a materlal misstaternent ol this other infofrnation we are required to report that fact. We have nothin8 to report In this re8ard. 23

LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORTTO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Opinlons on othèr matters prescribed by the Companie5 Art 2006 In our opinion, based on the work undertaken in the course of the audit: the information 8ven in the Trustees, Annual Report which includes the Directors, Report and the strateglc Report for the financial yèar for which the financial statements are prepared 15 con51Stent with the firhanci81 statements- and the Trustee5' Annual Report which includes the Directors, Report and the Strategic Report has beeft prepared in accordance with applicable legal requlrements. Matter5 on whSth we ère required to report by exception In the light of the knowledge and understanding of the charitable £ompany and its environment obtained in the course ol the audit. we have not identified material mlsstatements in the Trustees, Annual Report and Strateglc Report. We have nothng to report in respect of the following matter5 where the Companles Act 2006 requires U5 to report to you if, in our opinS0n.' adequate accountlng records have not been kept, or retlffns adequate for our audit have not been received Irom branches Thot V151ted by us., or the fin3n¢ial statements are not in agreement with the accounting re¢ords and returns,. or certain disclosures of trustees, rÈmuneration specified by law are not made,. or we have not received 311 the information and explanations we require for our audit. Responslbllities of trustees As explained More fully in the Trustees, Responsibilities Statement set out on page 20, trustees (who are a150 drrertors of the charitable company for the purposes of company lawl are iesponsible for the preparation of the flnan¢ial 5tatement5 and for being satisfied that theygive a true and fair vtew, and for such internal control as the trustees deterrnine 15 necessary to enable the piepar6tion of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the Ilnancial statement5, the trustees are responslble for assessing the charitablè company's abilitv to continue as a going concern. disc105ing, as applicable, matters related to goinE concern and using the going concern basis of accounting unle55 the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so. Audltows responslbllltles for the audlt of the financial statements We have been appointed a5 auditors under the Companies Att 2￿6 arnd report in accordante with reEulations made under that Act. Our objective5 ale to obiain reason8blÈ assurance 3bout whetler the tinantial statement5 a5 3 wholè are free fiom material misstatement, whèther due to fraud or error, and to issue an auditor's report that Includes our opinion. Reason3blÈ assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement whèn it exists. Misstatements can arise from fraud or erior and are considered material if, individually or in the aggregate. they could reason3bly be expected to influence the economic decisions of users taken on the basis of these financial Statements. Irregularities. intludin8fraud, are instances Of non-compliance with laws and regulations. We design procedures in line with our responsibilitie5. Qutlined above, to detect material misstatements in respect of ¢rregularities, including fraud. The specific procedures lor this engagement and the extent to whSch these are c3P3ble of detecting irre8ularitie5. includin8 fraud are delalled below. Identifying and assessing risks related to irre8uIBrities'. We assessed the susceptibllity of the charitable companvs financial 5tatement5 to material mi5Statement and how fraud might occur. including through discussions with the tru5tee5, disCU55ions within our audit team planning meetin& updating our record of internal controls and ensuring these controls opelated a5 intended. We evalvaied p055ible incentives and opportunities forfraudulent manlpulation of thefinancial statements. We identified laws and regulations that are of significance in the context of the charitable company by di5CU55ions with trustees and updatirig our understanding ol the sector in which the charitable coM￿nY operates. 24

LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORTTO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Laws and regL*lations of direct Slgnificance in the context of the tharitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales and the Church of England Measures. Audit response to risks identified.. WÈ considered the extent of compliance wlth these law5 and regulations è5 part of our audit procEdure5 on the related financial statement item5 including a review of financial staternent disclosures. We ieviewed the charitable cornpan¢s record5 01 breaches of law5 and regulations, rninute5 of meetlnEs ènd correspondence with relevant authorities to identify potential material mlsstatement5 aiisin8. We discussed the charilable company's policiÈ5 and procedures fof compliance with laws and regulations with members of rn3n3gernent responsible for cornpliarkce. During the planning meetingwith theaudit team, the engagement partner drew attentiorn to the key areas whlch might involve non-compliance with laws and regulations or fraud. We enquired of management whether thev were aware of any Instances of non-compllance wlth laws and regulations or knowlèdge of any actual. suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the approprbateness of journal entries and identifying any significant transactions that werè umusual or outside the normal course ol bu5ines5. We assessed whetherjudgemÈnts made in making accounting estimates 8ave rise to a p055ible Indicatlon of management bias. At the completion stage of ihe audit, the engagement P8rtner's review Included ensuring that the team had appro¥ched their work with appropriate professional 5cepticism and thus the capacity to identify non-compliance with laws and regulatjon5 and fraud. There are inherent limttation5 in the audit procedurès described above and the further removed non-complian¢e with laws and reBulation5 15 from the events and transactions reflected in the financial statements, the les5 likely we would becorne aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the ¥isk of not detectin8 one resulting from error, as fraud may involve deliberate conceaSment by, foi example, forgery or intentional misrepresentations, or throtsgh tollu5ion. A further description of our responsibilities is available on the Financlal Reptsrting Council's websÉte at.. www.lrc.or auditorsres on5ibilitie5. This description forms part of our auditor'5 report. Use of our report This report 15 made solely to the charitable company's mernbers, as a body, in accordance with Chapter 3 01 Part 16 01 the Companies Act 2006. Our audit work ha5 been undertaken so that we might state to the ¢h8ritable company's member5 those matters we are Fequired to State io them in an auditorfs report and foi no other purpose. To the fullest extent peimitted by law, we do not accept or assume re5PQF15ibility to anyone otherthan the charitable company an(J the charitable company's mernbers as a body, for our audii work. for this report, or for the opinions we have formed. Sally Appleton (Senigr Statutory Auditor) for and on behalf of Saffery Champness LLP Chartered Accountants statutory Auditors Date.. 2S wJoa3 Saffery Champne5s LLP is eliEible to act 2s an auditor In terms of Settion 1212 of the Companies Act 2006 25

LEEDS DIOCESAN BOARD OF FINANCE STATEMENT OF THE FINANCIAL AcfiviTIES For the year ended 31 December 2022 Unrestrlcted fvnd5 General Des4gnated £'ooo £'ooo Re#rirted Endowmenl Total funds Total funds Funds Funds 2022 2021 vooo £'ooo Note Income and endowments from: Donations Parish contributions Archbishop's Council Other donations Chaflt3ble activities Other activities Investment5 Other 12.429 2.970 395 1,737 1,155 688 370 12.429 5,090 442 1,737 1,155 1,193 766 11,989 5.616 564 1.483 911 1,077 794 2,120 47 464 59 41 337 Total 19,744 2,690 378 22,812 22,434 Expendlturè on: Raising funds Charitsble activities Pension deficit valuation movements Other 71 22,141 71 24,562 54 22.840 158 2,188 75 27 12361 32 12361 37 12501 242 Total 22,008 158 2,188 80 24,434 22,886 Net lexpenfllturellincome before Investment gains 12,2641 11581 502 298 11,6221 14511 Net Ilossl/gain on investrnents 13171 11.7591 12,1201 14,1981 4,478 Net lexpendlturèllincome 12,5811 11601 11,2571 11,8221 15.8201 4,026 Transfers betweèn funds 14 588 12,3561 1,768 Net movement in funds 11,9931 11601 13,6131 1541 15,8201 4,026 Total fLEnds brought f¢)rwJard 21 52,214 954 20.192 130.725 204,085 200.059 Total funds carried forward 22 50,221 794 16,579 130,671 198,265 204,085 All activitie5 derive from continuing attivitie5. The notes on pa8e5 30 to 59 lorm pèrt of theflnancial statements 26

LEEDS DIOCESAN BOARD OF FINANCE INCOME AND EKPENDITURE ACCOUNT For the year ended 31 December 2022 Total 2022 £'ooo Total 2021 £'ooo Total Income Expenditure 22,434 22,233 124.3541 122,8021 Operatlng Ideficlt}/surplus for the year Net Ilossl/gain5 on inve5trnents 11.9201 12,0781 15691 2,216 Net income for the year 13,9981 1,647 Other comprehensive Income: Net assets transferred Itollfrom endowments 11.7681 5,450 Total comprehèn51ve Income 15,7661 7.097 The income and expenditure account is derived from the Statèment of Financial Activitles with movements in endowment funds excluded to comply with company law. All income and expenditure 15 derived from contlnuing activities. 27

LEEDS DIOCESAN BOARD OF FINANCE BAL4NCESHErr At 31 December 2022 Company Number- 8823593 2022 2021 RESTATED £'ooo Note £'ooo FIXED ASSET5 Tangible a55et5 Inwe5trnents 16 17 157,502 36.224 157,386 40.486 193.726 197,872 CURRENT ASSETS Debtors Cash on deposit Cash at bank and in hand AgÈn¢y cash 18 1,028 5.649 1,582 3,925 1,034 7,114 2.759 3,673 12,184 14,580 CREDITORS: amounts fallln due wlthln one year 19 15.5091 16,0031 NET CURRENT ASSErs 6.675 8,577 TOTAL AsS￿s LESS CURRENT UABILITIES 2[￿,401 206,449 CREDITORS: amounts falling due after more than ofie year Penslon scheme Ilabllitbes other credltors 20 20 12.1361 12,3641 NET ASSETS 198,265 204,085 FUNDS Endowment funds 130,671 130,725 Restrlrted Sncome funds 16,579 20,192 Unrestricted income funds.. 50,221 52,214 Designated fvnds 794 954 TOTAL FUNDS 22 198,265 2151,085 Tre Notes Ipase5 30 to 591 forrn part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 25 May 2023 and signed on behalf of the 8Ekart6 bv.. THE RIGHT REV'D NICHOLAS BAINES 28

LEEOS DIOCESAN BOARD OF FINANCE CASH FLOW STATEMENT For the year ended 31 December 2022 2022 2021 £'ooo £'o £'ooo 129421 Net cash from operating activities 13.8981 Cash flows from Investlng actlvltles Dividends. interest and rent from investments Interest pald Proceeds from the sale of'.- T2n8lble fixed assets Flxed asset Investments Purchase of:_ Tangible fixed assets for the use of the LDBF FlxÈd assèt investments 1.193 1831 1.077 2.341 327 4.171 11.9271 1701 15551 11421 Net Cash provided by invest¢n8 activities 1,781 4,558 Cash flows from ftnanclng actlvltles Loan5 repaid to LDBF VLLS repaid due to property dlsposal Permanent loans repaid 131 11691 iioii 26 1551 Iiioi Net cash used in financing a¢tivitie5 12741 11391 Change In cash and ta5h Èqulvilent5 in the rÈportin# peri¢xl Cash and cash equivalents at l January 12,3901 13,547 1,477 12,069 Cash and cash tqui¥al*nts at 31 Decernber Ll.156 13,546 Reconciliation of net income before Investment galns / losses Net expense before Investmeni gains 31 December 11.6221 14521 Adlustments for- Depreciation charges Dividend5, interesl and rent from investments Interest paid Loss on sale ol flxed 35seis Profit on 58le ol fixed assets Pension deficit valuation movements Decrease in debtors Decrease In creditors 11.1931 83 36 17661 12361 io 12161 11.0771 242 17931 12501 19 16301 Net cash used in operatin8 artivities 13,8981 12,9421 Analysis of ¢ash and ¢ash equlvalents Cash in hand Notice deposits (less than 3 months) 5,507 5,649 6,432 7.114 11,156 13.546 29

LEED5 DIOCESAN BOARDOF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Decèmbèr 2022 ACCOUNTING POLICIES The LDBF is a private company limited by guarantee and reglstered Charity (No. 88235931 and incorporated in England and Wales. Its registered address is Church House, 17-19 York Place, Leeds, LSI 2EX. It is a Public Benefit Entity as defined by FRSIO2. The financial 5tatemeThts have been prepared under the hlstorical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in el, and fixed asset investments, which are included st their market value at the balance sheet date. The financial 5taternent5 have been prepared in accordance with the Statement of Recommended Practlce for Charities ISORP 20191. the Companies Act 2006 and applicable accounting Standards IFRSL021. The Trustees have prepared the financlal statements on a Eolng concern basls. The Trustees have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determlninE that thi5 IS the appropriate basis of preparation of the financial statements and have considered a number of lactors. The legacy of the Covid-19 pandemic and the high inflation experiènced in 2022 hès created a number of financial challenges that continue to be navigated. The Trustees are confident that the Balance Sheet remains strong and is sufficient to absorb deficits that may arise over the near term. A Cost Review was completed in early 2021, which provided a structure to balan￿ the budget over the longer term. Additionally, in autumn 2022 the Board aEreed a higher level of restricted fund transfers li.e. from the Pastoral Account, S554 Fund and Stipends Capital Fund where spending criteria is mell for up to five years to support the unrestricted position. Consequently, the Trustees have a reasonable expectation that the Company ha5 adeouate resources to continue in operational existence for the foreseeable future. The principal accounting policies and estimation techniques are as follow5. I Income All incoming resources, including gilts, donations and legacies are Shown in the Stattrment of Flnancial Activities ISOFAI when the Board is legally entitled to them as income or capital respectively. ultimate receipt is reasonably certain and the amount to be ￿COgnISed can be quantified with reasonable accuracy. 11 Parish Share income. Credit is only taken for parish share income whl¢h was recèived within the time scales laid down by the Board. ill Grant5 from the Church Commissionèrs towards stipends. housing and other items have been included in the Income for the year ard the appropriate Expenditure is shown gross. Grants received whsch are subject to pre<onditions for entitlement or use Specified by the donor whith have not been met at the pèriod end are included in crediiors to be carried forward to the following year. iiil Stipend5 fund income. The Stipend5 Fund Capital account is governed by the Diocesan Stipend5' Fund Measure 1953, as amended, and the use of the income is restricted for clerBY Stipends. However, Ihe income is fully expended within the yèar of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the (normally much largeTI related expenditL¢re are both included in the unrestricted ctslumn ol the Statement of Financial Artivities for the Sake of greater clarity and 5impSicity in finallcial reportinE. bl Expenditure Exper¢diture is included on the accruals basis and has been c13ssifièd under headings that aggregate all costs related to the Statement of Financial Activity categorv. 11 Costs of ralslnB ftsnds are constrained to costs relating to the ternporary rèntin8 Out of parsona8es and investment managernent costs of glebe and any other investment properties. ill Charltable expendlture is analy5ed between ¢ontributitsns to the Archbishops. Council, expenditure on resourcing mi55i0n and ministry in the parishes of the Diocese. expenditure relatingto the running of the diocesan retreat centre, and expenditure on education and Churth DI Eng12nd schoo15 in the Diocese. 30

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMEvfs Icontlnuedl For the year ended 31 D￿ember Z022 I. ACCOUNTING POLICIES Icontinuedl iiil Grants payable are charged in the year when the offer 15 conveyed to the recipient except in those cases where the offer is conditional OTh the recipient satisfyin8 performance or other discretionary rèquifèments to thè &ati5faction of the LDBF, such grants being recogrised as expen(Jiture when the conditions attaching are fulfilled. Grants offered subject to such conditlons whlch have not been met at the year-end are noted as a commitment, but not accrued as eKpendituie. ivl Support costs consist of central managèment, administralion and 8tsvernance Costs. The amount spent on raising funds and other activitiès is eonsidèred to be imm3terial and all support costs are allocated tts the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximatÈ staff time basis. vl Pen5i0n contribution5. The LDBF'5 staff are mernbers of the Church Worker5 Pension Fund and Clergy are member5 of the Church of England Funded Pensions Scherne (see note 281. The pension costs charged as resources expended iepresent the LDBF'S contributions payable in respect of the accounting period, in a¢cordance with FR5102. Oeficit fundivg for the pension schemes to which LDBF participate5 is accrued at present value in creditors distinguished between contributions falling due within one year and after rnore than one year. cl Tanglble flxed assets and depreclatlon Cupitollsation of property expencliture Property expellditvre is only capitalised on the purchase of a property. or if the expenditure 15 for the structural or other enhancement of a property. Repairs expendiiure Ss generally not capitalised. Assets heldfor sole Properties which are sold subject to contract are included within the tangible fLKed asset t3tegory to which they relate. This represents a change in accounting policy in the year and as su£h the pr5or year has been restated. Freehold properties Depreciation is not provided on buildings as any provision lannual or cumulativel would not be rnaterial due to the very long expected remaining useful economic life in each case, and bec3use thesr expected residual value is nc>t materially less thzn their carryin8 value. The LDBF h35 a policy of regular 5truclural Inspection, repair and maintenance, which in the case of residential prDperties is in accordance with the Repair of Benefice5 Buildings Measure 1972 and propertie5 are therefore unlikely to deteriorate o¥ suffer from obsoles<en¢e. In addilion, disposals ol properties occur well before the end of their economic lives and disposal proceeds are usually r*ot less than their carryinÈ value. The Trustees perftsrm annual impairment review5 accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amovnt. Freehold properties are revalued on a five-year cycle. Properties subjeci io volue linked loons Properties whieh have been bought with the as515tance of value-linked loans from the Church Commissioner5 are revalued on a five-year cycle, with the corresponding liabilities being adjusted accordingly. Investment properties Glebe properties which are held for investment purposes and rented out have been included al their fair value. Porsonage houses The LDBF has followed the requirernents of FRS102, in Its accounting treatment for beneflce houses Iparsonagesl. FRS102 requires the accounting treatment io follow the substance ol arran@ement5 rather than their strict legal form. The LDBF is formally responsible for the maintenance and repair of such properties and has sorne jurisdiction over their future use or potentlal sale if noi reouired as a beneflce house. bui in the meantime legal title and the rlght io beneliclal occupatlon is vested in the incumbent. 31

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnu@dl For the year ended 31 December 2022 ACCOUNTING POLICIES Icontlnuedl The Trusteès therefore conslder the most suitable actovnting policy 4S to capitalise such properties as expendable endowment assets and to carry them at their estimated current market value. P8r50na8e houses are ievalued on a five-year Cycle. Schools The school property is shown at cost. Depreciation is provided on the buildirbÉ over a 50-year period (£6,000 pal the expè¢ted vseful economic life of the asset. dl Other tangible fixed assets Other capital expenditure over £25,000 is capitalised and depre¢iate(J 35follows. Depreclatlon Is prowded in order to write off the cost Iless any ultimate disposal proceeds at prices rulinE at the time of the asset'5 acquisltionl of other fixed a55ets over their currently expected useful economic Ilves at the following Office fixtures & fitlln85 Office equlpment Computer eouipment IO% stralght line 33% straight line 33% straight line OthertanÈible fixed assets addltlons less than £25.000 arè depreciated in full duringte year of purchase. el Keyjudgements The preparation of the financial statements reouires managemenl to makejud8ements, estlM3tes and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the arnount5 reported for revenues aNd expenses duiin8 the year. Howevor, the nature of estimation means that artval outcomes COLtld differ from those estimates. The following jud8ements lèpart from those involving estimates) have had the most significant effect on amounts reco8nised in the finèncial ststements.. Land & Byildings are deerned to have unlimited useful lives. All other tangible fixed a55ets are considered to have three-yÈar useful economic live5. Land 3nd Buildings are not depreciated because 91 the high resldual value b35ed on current pri￿5 and any depfeciation charge and the accumulated depreclaiion are regarded as noi material. These assets are considered to have a long unexpired life due to a policy and practice of regu13r structural maintenance aThcl a policy and practice of dispD5ing of similar properties Ktrell before the end of teir usefvl Ilfe. The a55UrnPtlons underlyln8 the valuation of the pension scherno liabilities are set out in note 27. fj Other attountinE policies il Fl*ed asset investments are included in the b3lante sheet at market value and the Bain or loss taken to the Statement of Financial Activitie5. ill Leases. The LDBF ha5 entered only into operatin8 lease arrangement5 for the use of cèrtain assets, the rental for which is charged in full as expenditure in the year to which it relates. Where rent Iree periods are given as part of ari operating lease, the impact ol thi5 rent free period is amort15ed ovei the whole period of the lease. 32

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THe FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2022 ACCOUNTING POLICIES Icontinuedl g} Fund balan￿$ Fund Balances are split between unrestricted (general and deslgnatedl. restritted and endowment funds. il Unrestricted funds are the LOBF'S corporate funds and are freely available forany purpose within the charitable company's objects, at the dlscretlon of the LDBF. There are two types of unrestricted funds: General funds which the LDBF intends to use for the general purposes of the LDBF,. and Designated funds set aside o￿t of unrestricted funds by the LDBF for a purpose specifted by the Trustees 111 Re5trlcted funds are income fund5 subject to condrtions imposed by the donor as specific term5 of trust. or else by legal measure. lill Endowment funds are those held on trust to be retained for the benefit of the charitable company as a Capital fund. In the case of the endowment funds administered by the LDBF IPatsoThage Houses and Schoolsl, there are discretionary powers to convert capital into income and, a5 a result, these funds are classified as expendèble endowment. Endowment funds where there 15 no provision foi expenditure of capital are classified as permanent endowment. "Special trusts" las defined by the Charities Act 20111 and any other trusts where the company acts a5 trustee and contro15 the management and use of the fvnds, are Included in the compan￿5 own financial statements as tharity branches. Trusts where the LDBF acts merely ès custodian trustee with no control over the managernent of the funds are not included in the f5nancial statèments bul are summarised in the note5 to the financial statements. DONATIONS The majority of donations ère collected Irom the parishes of the Diocese through the parish share system. Parlsh contrlbutlons un￿$t￿￿ted fuh¢ts Restricted Endowmeni Totsl funds 2Q22 £'ooo Total ftJnd5 2021 £'wo General Deslgrhated £'L￿o Funds £'ooo Funds £'ooo Apportionment Shortfall In receipts 15,464 13,3821 15,464 13,3821 15,474 13.8771 12,082 181 166 12.082 181 166 Previous yea15 shère Voluntary share 11.597 217 175 Totsl Income 12,429 1?.429 11,989 Current year parish share receipts represent 78.1% of the toral apportioned12021 74.9%), or. when other voluntary contributions and receipts for PFevious years are Included, 80.4% of the total apportioned 12021 77.5%). 2021 comparative5 are for the general fund onlv. 33

LEEDS DIOCESAN BOARD OF FINANCE NofES TO THE FINANCIAL STATEMENTS {continuedl For the year ended 31 December 202Z DONATIONS Itontinuedl Archbishop5' Council Unrestrlcted funds Gene￿[ Designated Restricted Endtswment Funds Funds Totalfunds 2022 £'ooo 2022 TransStlon Funding and Lowest Intorne Min15try Hardshlp Fund Energy CrisL4 Support MES Gr8nt RME Grant 5DF Grant SMF Grant 2.970 2,970 126 723 18 433 528 292 126 723 18 433 528 292 Total Incorr 2,970 2,120 5,090 Vnrestrided lunds General Designated Restrfrted Endowrnent Fund5 Fund5 Tot•1 funds 2021 £'ooo 20ZI Transition Fundlng and Lowest Income su5tain3bility Grant RME Grant 5DF Giant SMF Grant 3,124 3,124 950 950 429 974 139 429 974 139 Total Income 4,074 1,542 5,616 The Lowest Income Comrnunltles Grant and The Transition Funding are annual grants for the parlsh mission fund, which may be ijsed either for specific parish mission ond development project5 or for clerÉy Stipends. The SLJStainability Grant was provided by the Archbishops, Council in response to the Covld-19 pandemlc. The RME I'Re50urcin@ Ministerial Education'l Grant is the funds provided by the Archbishops, Council for the training ol ordinands. The SDF I'Sirate8ic Development Funding'l Grant Is funding allocated by the Archbi5hops' Council Strategic Oèvelopment Unit towards spècific strategit projects. In 2022 SDF Èranl5 were received princlpally in relatiorn to developing Re50urcing Churches in Leeds and Bradford and the Diocesan Intern S¢heme. The SMF I'str3te8ic Ministry Funding'l was granted by the Archbishops, Council and provides financial Support for growth in the number of clerEY by funding curates. The MES 8iant I'minlstry Experience Schefne'l is provided by the Archbishops, Council to help fund a scheme for those exploring ordination. Other donations Unr*strirted lunds Genèrol Designated £'ooD Re5trlcted Fund5 £'ooo Endowment Funds Total Funds E'OOO 20Z2 All Churches Trusi fjTant Property Grants Other Grants LegaC￿S Other Do￿tionS 268 io 39 51 74 io 13 26 21 74 395 47 442 34

LEED5 DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2022 2. DONATIONS Icontlnuedl Unre5trlcted lunds General Designated £'ooo Re5trlrted Fund5 Endowmenl Funds E'ooo Funds 2021 £￿00 All ChurchesTrust fjrant Job Retention Property Grants Other Grants Legacies 285 76 li 30 285 76 li 50 142 20 142 402 L62 564 CIIARITABLE ACTIVITIES Unrestrkted fund5 General Designated Restrftted Endowrnent Total funds Funds Funds 2022 £'ooo Totalfunds 2021 É'ooo £'ooo Statutory fees Legal & Professlonal School Services Retreat C.e.nrre 953 78 451 255 953 78 451 255 979 283 157 1,737 1,737 1.483 2021 comparatfjves are for the general fund only. 4. OTHER TRADING ACTIVITIES Vnrestricted fund5 General De$ign•Eed £'ooo É'ooo Restrlcled Endowmerbt Toial funds Fund5 Fvnds 2022 £'ooo £'ooo 2022 Housing Income Outside funding Training income Mrscellaneous 954 36 46 119 954 36 46 119 1,155 1,155 Unrestrirted lunds Gènerol Designat¢d £'ooo Restricted Endowrnent Funds Funds £'ooo £'ooo Total lunds 2021 £,￿0 2021 Houslng income Outside Fundin8 School income Tr3ininE income Miscellaneous 724 724 48 123 123 903 911 35

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENT5 Icontinuedl For the year ended 31 December 2022 INVESTMENT INCOME Unrettrlrted funds General Dtsignated Restrieted Funds Èndowment Funds £'ooo T¢i•l Funds 2022 £'ooo DwKfends reeeniable InterÉ5t recewable 613 75 456 38 1.107 86 464 4J 1,193 20ZI £'ooo £'ooo D￿￿endS recewoble Interest recelvable 677 347 49 1073 681 347 49 1.077 OTHER INCOMING RESOURCES Unrestr4Cted funds General De51Enated £'ooo Restrfcted Fvnd5 £'coo ErKlowrnent Funds Total funds 2022 2022 Gain on saleof invÈ5tments Gsin on sale of propertie5 194 143 194 572 370 59 370 59 337 766 Unre5trirted funds General Deslgnated £'ooo Réstricted Funds Endowrn•nt Funds £'o Total lunds 2021 2021 Galn on Sale of investments Galn on sale of proporties 408 234 152 794 234 152 794 FUND RAISING COST5 Unyestrlcted funds General Designated £'ooo f'ooo Restrlrted Endowment Tatalfunds Funds Sunds 2022 £'ooo Totsl funds 2021 £'o £'ooo Maintenance of Glebe 71 71 71 71 54 2021 comparatives are for the general fund only. 36

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL >fATEMENTS Icontlnuédl For the year ènded 31 December 2021 CHARITA8LEAcfiviTIES Unresirfrted fut)ds Genet•l Desl8trlatÈd £'ooo f'ooo Rertyicted Endowment Funds FuThds É'ooo T01411und5 2022 Contfibutlons to Archbishops, Council Trainin8 fo>r Ministry Nation?1 Church 499 499 344 344 Mlssion agency pension Costs Retired clergy housing costs Poolin8 Df ordinand5 maintenance Erants 16 16 198 198 19 19 1,076 1,076 ResourclnE Mlnlstry and Mlssion Stipends and national nsurance Pension contributlOll5 Housin8 ¢05ts Removal, resettlement snd 8rants Other expense5 9,012 2,468 4.349 402 116 82 9,414 2,584 4,589 158 302 237 302 237 16.368 158 600 17,126 SupKM)rtfor parish ministry Retréat Centre 3.652 295 1,388 75 5.LlS 295 20.315 158 1,988 75 22,536 Expendiiure on Ed￿tation Churth Schools 750 200 950 22.lal 158 2.188 75 24,562 37

LEED5 DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year endèd 31 December 2022 CHARrrABLE AcfiviTIES Icontlnuedl UnrÈstr4rted funds General Designated Rt5tflcted Efidowment Funds Fund$ Total lunds 2021 £'ooo 2021 £'ooo Contrlbutlons to Arthb15hops' Countll Training for Minlstry National Church Responsibilitie5 Mission a8ency pension costs Retired cler8y housing costs Pooling of ordinands malntenance grants 5CM) 500 392 392 22 22 184 154 154 1.252 L252 Resour¢inB Ministry and Mlssion Stlpends and national insuiance Pension contrlbutions Housing £0sts Removal, resettlement and grants Other expense5 8,815 2.522 3,374 340 78 35 9.155 2.600 3,409 314 200 314 200 15,225 453 15.678 Support for parish ministry Retreat Centre 3,746 1,142 12 4,909 212 212 19,183 1,595 12 20,799 Expenditur• on Edu<ation Church khools 691 98 789 21.126 1.693 12 22,840 38

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2022 OTHER RESOURCES EXPENDED Unre5trFrted lund5 General DeslEnated £'ooo Réstwirted Funds Endowment Futlds Total Fund5 £'ooo 2022 Loss on Sale of Properties 37 32 37 Unrestrlcted funds General Desigt)ated É'oo Restrlcted Funds Enrfowment Fund5 £'ooo T￿81 Fund5 £'ooo 2021 L05s on Sale ol Propertles 170 72 242 170 72 242 10. ANALYSIS OF EXPENDrruRE INCLUDING ALLOCATION OF SUPPORT COSTS Artlvltles Undertaken Dlrertty £'OC#) Grant Funding of Artlvkles Support Costs £'ooo Total Costs 2022 RaSsln£ fun(Is Ch3rf(able activitie5'. ConlribJtlDn5 to Archbishops. CourKII Re50urcin£ parish ministry Clergy pension defictt V31uation EdUcat￿n Retreat Centr Lay pension deficit valuatlon Other 71 71 1,076 1,608 1.076 22,241 12251 950 295 19,568 1.065 680 295 270 37 37 20.415 L335 24,434 2021 ftaisin8funds Charitable artivit￿s-. Contributions to Archbishops, Council Resourtln8 parish mlnistrv Cpergy pension deficit valuation EducatiorTr Retreat Centre Lay pension delicit valuation Other 54 54 1,252 645 1,252 20,587 14 789 212 12641 242 18,882 14 639 212 12641 242 150 19,779 1.897 1,210 22.886 39

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ènded 31 December 2022 ii. ANALYSIS OF SUPPORT cosrs Unre$trirted funds Restilded Endowment Total funds 2022 Total funds 2021 General Deslgnated £,￿0 Funds £'ooo Funds £'coo Central adrnini5tratK)n Support foi Schools Governance- External audit Registrar and Chancellor Synodlcal cost5 770 270 270 150 28 28 30 243 243 241 19 1.335 1,33S 1,210 2021 comparatives are for the general fund onlv. 12. ANALYS15 OF GRANTS MADE 2022 IndFvidua15 £'oc Instlrutiohs Total From unre$trlrted *unds for national Church rospon5ibllitles Contributions to Archbi5hops' Covncil 12 1,076 l.D76 From unrestrtrted funds.. Ecumen￿41/ ChurchesToÉether organisations aergyTraining Clergy GrÈnts (Removal. Flrst èppointment, ￿settleMentI Ordlnation Vocation grants MIs5ion Grènt5 66 303 66 303 191 38 301 33 37 iio 37 iio 39 39 1,367 516 45 561 Fiorn restricted funds for varfous purpDse5 Wlthin resourclng parlsh mlnlstry: PCC Bulldinz Grènts PCC Enerev Grant5 Education Clergy 39 265 66 715 140 66 715 140 118 165 118 472 118 921 J,039 From endowment fundsfor various purposes within resourciTrE parlsh mini$trv', PCC 8uilding Grants io 1,861 634 2,050 2,684 40

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2022 12. ANALYSIS OF GRANTS MADE Icontinuedl 2021 Indlvldu31s £'OOD Inrtitutlor Total From unresirltted funds for natlDnal Church responslbllltles Contributign5 to A¥¢hbishops' Council 12 1.252 1.252 From unrestrlcted fund5: Ecumenical/ Churche5 Together organisations Clergy Training Cler8y Grants IRernoval, First ppointrnent, reSettle￿ntI Ordination Vocatlon grants Mission Grants Youth 754 225 49 315 49 315 33 34 51 29 151 29 151 24 24 1,498 544 574 From restritted fumdsfor variou5 purposes within sour¢lrtg parlsh mknlstry: Cler8y 26 29 29 26 29 29 From endowmentfundsfor variotss pyrposès wlthin rÈsotsrcing p2rlsh minlstry.. WidDW5 dependants ol clergy 14 42 42 1,550 573 1,324 1,897 41

LEEDS DIOCESAN BOARDOF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the Year ended 31 December 2022 13. STAFF COSTS 2022 £'ooo 2021 £'ooo Employee costs durinB the year were as follows= Wages and salaries National insurance contributions Pension contributions 2,906 288 259 2.840 270 226 Sub-total 3,453 3.336 Pension deficit valuation movements Iiii 12641 Total stsff Costs 3,442 3,072 The average number of persons employed by the LDBF during 2022 were.. 2022 Number 76 li li 2021 Number 79 li li Support for Mlni5try Education Retreat House 98 ioi The average number of persons èmployed by the LDBF during the year based on full-time equivalents.. 2022 Number 63 li 2021 Number 63 li Support for Mirjistry Education Retreat Housè 80 80 ThÈ numbeF5 of staff whose emoluments (including benefits in kind and redundancy paymenls but excluding Pension contributions) arnounted to more than £60,000 were as follow5.. 2022 Number 2021 Number £60,001- £70,000 E70,001- £80.OOQ £80,001- £90,000 £90,001- £100,000 Pension payments of £34,000 were made for thesé 4 employees12021: 4 employees £34,000). 42

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2022 STAFF COSTS Icontlnuedl Remuneration of key management personnel Key managernent personllel are deerned io be those havlng authorlty and responsibi1Sly. deleeafed to them by ihe trustees, for plannlng, dlrectlng and controllinB the actiwties of the Diocese. During 2021 they were.. Dlocesan Secretary Chief Finan￿ Officer Dlrector of Ministry & Mi5slon Director of Education Dlrector of Strategy Implementation & Head of Property Director of People and Engagement Director of Church Revitalisation Dirertor of Communications Jonathan Wood Geoff Park The Revd Canon Andrew Norm2n Canon Richard Noake John Knox Anna Mitchell The Revd Jude smith Chris Tate Remuneration. pensrons and expense5 for these 8 employees amounted to É567.00012021.. 8 employee5 £548,0(K)l. Tru5tees' emoluments No Trustee received any remuneration for Services as Trustee. The Trustees received travelling and out of pocket expenses, totalling £Nil12021- £Nill in resped of Trustee duties. The following table gives details of the Trustees who were in ieceipt of a stipend andlor housing provided by the LDBF during the year-. Stlpend No No No No No No Ye5 Yes Yes Yes Yes Houslng Yes Yes Yes Yes Yes Yès Yes Yes Yes Yes Yes The Right Revd Anthony Robinson The Right Revd Helen-Ann Hartley The Right Revd Paul Slater The Ri8hi Revd Toby Howarth The Right Revd Jonathan Gibb5 The Right Revd Arun Arora The Revd Nlgel Wrlght Revd Canon Kathryn Fitzsimons The Ven Paul Ayers The Revd Rachel Firth The Revd Eve Ilid8eway No othèr trustee5 appointed durin8 the year received a stipend or housin8. The LD8F 15 responsible for funding via the Church Cornmis5ionersthe stipends of Ilcensed stipendiary clergy in the DioEese, other than bishops and caihedral staff. The LD8F is also responsible for the provision of housin8 lor stipendiary clergy in the Diocèse includin8 the Area Bishops but excluding the Diocesan Bishop and cathèdral staff. 43

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS ItontinLredl For the year ended 31 December 2022 STAFF COSTS Icontinuedl The LDBF paid an average of 32412021- 32015tipendiary clergy as ofFice-holders holding parochial or diocesan appointments in the Diocese, and thè costs were as follows= 2022 £'ooo 2021 £'ooo 8,106 38 671 2,509 Stipends Apprentice Levv Natlonal insurance contiibutions Pension contribution5 8.259 39 713 2,693 Sub-total Pension deflcif valuatlon movements 11,704 12251 11,324 14 Total 11,479 11,338 Stipends Include £70.0(X) redundancy payments paid to I clerEy12021-£Nill. The stipends ol the five Bishops were paid and funded by the Church c0￿mIsSioners. The stipends of the Diocesan Bishop and Area Bishops are fvnded by the Church Commissioners and are in the range £38,05L) E46,66012021.. £37,670- £46,180). The annual rate of stipend, funded by the LDBF, paid to Archdeacon5 in 2022 was £37.56712021.. £36,830) and other clergy who were Trustees were paid in the range £25,770. £27,93612021: £25,265- £27,388). 14. ANALYSIS OF TRANSFERS BEfwEEN FUNDS Unrestrirted funds General DeslEnated £'ooo Rèstricted Endowmènt Funds Funds £'ooo From General fund to Stipends endowrnent for reduction of pension deficli Transfer of Pension funds to General Funds (o support clergy pension deficit payments Transfei of P85toral funds to General Funds to SUPPOTt M&P activities ènd clergy pension deficit payments Tian5fer of S554 funds to Gener31 Funds to support Bgard of Educatlon expenditure Transfer of Inglefield furids to General Funds to support Lay and Clergy education Transfer of Training for Ministry funds to General Fund5 to Support ordinands, training. Transfer of housing assets followlng Pastoral Scheme Transfer of Parsonage Houses Irom DBF/Pastoral Account to Benefice Housing Transfer ol housing following PL¢rch3se of replacement Parsonage property Transfer of P3rsona8e Sale proceeds to Pastoral Account for purchase of replacèmènt Par50nage Transfer of historic church buildines rèpair fund incorne 13351 335 58 1581 455 14551 250 12501 65 1651 30 310 1301 13101 12451 12,7801 3,025 695 16951 497 32 14971 1321 588 12,3561 1.768 During 2022, £0.3m of 8èneral funds werè used to pay the ¢ler8y pension scheme deficits. Tran5fer5 from Pension and Pastor31 funds funded these payments. Other transfers from restricted to unrestricted funds 01 £0.5m were undertaken to support education work, ordinands, training, missions and pastoral activities. 44

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS l¢ontlnuedl For the year ended 31 December 2022 14. ANALYSIS OF TRANSFER5 BETWEEN FUNDS (continued) Transfer of a house with a book value of £0.3m from benefice funds to unrestricted funds took place on the completion of Pastoral Scheme5. And. £0.2m, £2.8m and £4.2m wa5 transferred from uniestricted funds, the Pastoral Account and Stipend5 Fund Capital respectively to benelice funds to reflect the correct allocatlon of parsonage houses. Followin8 the purchase of a replacement parsonage the existing property was transferred from benefice funds io the Pastoral account pending sale I£0.7ml and following the 58le of another parsonage property funds of £0.5m were also transferred to the Pastoral Account pending a pastoral scheme. Within endowment funds land therefore not visible above) £0.5m was transferred from glebe land to the stipends fund capital being the pioceecls on sale of these asset5, and £0.5m from the stipends fund capital to benefice housing on the purchase of a new paisonage property. IS. FINANCIAL INSTRUMENTS 2022 2021 Financial asgets measured at fair value Financial assets measured at arnortised co 31,672 1,028 35,870 1,034 Financial liabi1Stlès measured at amortised cost Financial liabilities measured at fair value 5,732 1,913 6,286 2.081 Financial assets Measur￿ at fair value comprise unlisted investments. Financial assets measured at amortised c05t comprise trade debtor5. Other debtors. value linked loans and otheT loans to parishes and schools and othei receivable5. Financial liabilities measured at lair value comprise Church Commlssloners, value linked loans. Financial liabilities measured at amoriised cost comprlse penslon scheme liabilities. other creditors and arnounts held for other bodies and Church Commlssioners. other loans. 16. TANGIBLE FIXED ASSETS RESTATÉD Freehold otllce Flxtures & Beneflce properties equipment Frtting5 propertles E'ooo Pastoral F*Jnd School Glebe House prop2rtie5 Total Cost oi valuaiion £'c#Jo £'ooo £'ooo £'ooo At l January 2022 Additions Disposals Reclassified In period At 31 December 2022 48.433 838 11,4501 65 821 92,679 1,070 308 16.040 158,281 1,927 11.8051 19 17601 695 47,S86 821 19 92.634 695 308 16,040 158,403 Depreciation At I january 2022 Char8È for thÈ year 821 74 895 At 31 Oecember 2022 821 80 901 Net Book Value At 31 December 2022 47,886 19 92,634 695 228 16,040 157.502 At 31 Decetnber 2021 48.433 92.679 234 16,040 157.386 45

LEEDS DIOCESAN BOARO OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuèdl For the year ended 31 December 2022 16. TANGIBLE FIXED A5SEfs Icontlnuedl All of the properties in the balance sheet are freehold and are vested In the LDBF. except for benefice htsuses which are vested in the Incumbent. Some properties have bèen purchased with the help of permanent andlor value-linked 103n from the Church Comrrissioners., when disposed of, the appropriate Share of the net sale proceeds wlll be remitted to the Commissioners. and the related loan liability extingulshed. The value of such properties lincluded in the above) amounts to £6,285.000 12021.. £6,640.L)001. Of the total land and buildings at 31 December 2022, £NIL are valued at cost12021.. £NILI, but all al valuation. Propertles are subject to a five-year cycle of survey and consequent revaluation, with the last market valuation being as at 31, Decembei 2018 by Dawd Chary BSC FRICS of Sander50n Weatherall. In a change of accounting policy for 2022. no properties are rkow shown as Assets Held for Sale. The comparative balance sheet has been restatèd with £990,000 of Assets Held for Sale now shown as Tangible Fixed Assets at 31 December 2021. 17. FIX£D ASSETS INVESTMENTS At l January 202Z £'oc Change in Market Valu* At31 DetembBr 2022 Transfefs Value Addltlons f'CiIO 015posals f'coo £'ooo Unre$trirted funds Un115ted Investments 6,104 70 1701 13.3401 13171 2,147 De518nated funds Unlisted investments 16 14 Restritted lunds Unlisted investments 11.508 3,398 11,7591 13.147 EndtJwment funds Investment property Unlisted investments 4,616 18.242 1641 4,552 16,064 1581 12,1201 22.858 1581 12,1201 20.616 Total 40,486 70 14,1981 36,224 DEBfoRS 2022 £'ooo 2021 £'ODO Due withln one year Loans io parlshes Other debtor5 and prepayments 12 9?7 986 989 995 Due after more than one year Loans to parlshes 39 39 39 39 Total debtors 1,028 1,034 46

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS IcontSnuedl For the year ended 31 December 2022 19. CIiEOITORS: amount falling due wlthin one year 2022 2021 £'ooo Loan repayment Instalments due In one year Church CornmissionÈrs value-linked loans Church Commissioners other loans Other taxes and social security Other creditors and accruals Pension 5¢herne liabllltles.. Lay Defined Benefit Scheme Clergy Pension Stheme 128 loo 73 5,208 169 ioi 71 4,933 169 560 Total credltors: amounts falllng due within one year 5.509 6,003 CREDITORS: amount falling due after mole than one year 2022 £'ooo 2021 £'ooo Loan repayment instalments due after more than one year Church Comrnissioners valiie-linked loans Chuich Commissioner5 Other loans Pension scheme liabiliiies.. Lay Defined Benefit Scheme Clergy Pension Scheme 1,785 351 1,912 452 Total treditor5.' amount5 falllng due after more than one year 2.136 2,364 The maiurity of the above loans may be analysed as follows.. Between one and two years Between two and five year5 In five year5 or more loo 237 1,799 loo 299 1.965 2,136 2.364 Church Commissioners other loans conslst of permanent loans in collection wt>ich are mortgage103ns for the purchase of clergy houses- the arnount falling due after more than one ye81 all relates to the General Fund. These loans are repayable over terms raftging from 5 to 25 years in quarterly instalment5, Wlth the final loan repayable in 2028. The loans bear interest rates between 6.1% and 8.5%, which is borne by the LDBF. In the event of sale, the loan would be settled out of the proceeds arsd there would be no further charge to the LDBF. Value-linked loans IVLLSI are funds advanced to the LDBF for the purchase of properties on an equity sharlng basis and ère repayable on the disposal of the related property. The loans ale held ai falr value based on the latest valuations of the linked properties, with valuation5 taking place every 5 year5. 47

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 Decèmber 2022 21. SUMMARY OF FUND MOVEMENTS 2022 B31aThces at l Jat)uary 2022 £'o BalarKe5 at Galns and 31 DÈ¢ember Lo$&e$ 2022 I￿orne EMpenrJituTe Transfers £'ooo UNRESTRICTED FUNDS General 52.214 19,744 122,0081 13Ln 50,221 DESIGNATED FUN05 Archdeacons D15Cfetionary In£row Fund Mission Fund Carbon Reduction Fund 13 20 621 30Q li 20 621 142 11581 954 11581 794 RESTRICTED FUNDS Secty)n 554 Educat￿)￿ Clergy & DepetTrdants hardship funds Bradlord Sumrner Camps Local Educational Funds Retreat House sUp￿rtfUnds Lotal Parochial purposes Appeals & specifit purposes Clergy &12y stipend augmentation Church buildlng repalr funds Pastoral Account ManaginE Trustees fu￿9 Inglefield funcls Trainingfor minlstry funds StrateElC DÈvelopment Funds Strategit Ministry Funds Parish EnerEY Support Grants 7,499 96 205 143 12001 11171 12501 17511 6,%3 114 37 31 13 65 142 401 9,093 si 1.784 896 83 37 37 14 70 163 396 6.613 si 1,597 891 83 21 13 233 32 12.0431 1501 16701 44 472 528 292 724 11661 11121 13351 15281 12921 17151 1301 20,192 2,690 12,1881 123561 11.7591 16,579 ENDOWMENT FUNDS Permanent 5tipendsfund capltal Expendable General purposes & administration support lun(Ss Maintenante of Ministry Penslons Trainin8 fur rnlnistryfunds Clergy & Elependants hardship funds Lc(al Parochial pufposes Glebe Land Chvrch building repairlunds GlÈbe Properties BeneficÈ Propert￿$ Local Education Fun(Js Rellglous Educatlon 5UPPOrt Appeal fund5 & specific purwses 19,769 14,6961 11,7211 13,349 212 212 1,270 66 114 1,332 592 4,616 704 16,040 85,679 iii 177 43 11491 1,121 1581 117 1,242 544 4,552 563 16,040 92.634 98 156 43 27 1481 194 12581 1751 1431 143 6.812 130,725 378 1801 1.768 12,1201 130,671 204,085 22,812 124,4341 14,1981 198,265 48

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL sfATEMENT5 {continuedl For thè year ended 31 December 2022 21. SUMMARY OF FUND MOVEMENTS Icontlnvedl zozi Balan￿5 at l J•nyary 2021 8alanos at Galns and 31 December Losses 2021 Income £'ooo Exp¢nditure Transfer5 £'ooo UNRESTRICTEO FUNDS General 49,059 19,940 121.1001 3,641 674 52,214 DESIGNATED FUNDS Archdeacons Discretlon8ry Ingrow Fund Mission FLtnd Carknn fteduct￿n Fund 12 28 621 300 13 20 621 300 961 954 ResTricrED FUNDS Section 554 Education Cler8y & Dependants hardship funds Bradlord Summer Camps Loc81 Educational Funds Retreat House sUPPOrt funds Local Parochial purposes Appeal & specific purposes Cler8y & lay stipend augmentstion Church building repair funds Pastoral Account Managing Trustees funds 6.829 84 260 21 1981 1171 13001 808 7,499 96 33 31 13 72 37 31 13 GS 142 401 9.093 142 359 6.289 51 1,602 815 64 53 363 262 2,179 40 452 974 139 1401 1301 Training for nTrlnlstry funds Strategii Development Funds Strategic Ministry Fund5 1,784 896 83 14651 19551 11391 124 16,243 2,293 11.6931 1,540 20,192 ENDOWMENT FUND5 Peimanent Stipends fund capit31 Expendable General purposes & èdmlnistration support funds Maintenance ol Min15try Pension5 Trai￿1ng for minlstryfund5 Cler8y & dependants hardship lund5 Local Psrochial purpo*s Glebe Lènd Church buildlng repair funds Glebe Propertie5 Benefice Properties Reli8ious Education support Appeal funds & other specific purposes 16,067 1,878 1,824 19,769 212 212 I,iio Ic iii 1,192 541 4,797 634 17,277 91,460 2S2 43 160 14 1,270 114 1,332 592 4.616 704 16.040 85.679 288 43 26 1121 126 51 11811 19 51 11,1651 15.9321 151 36 133,796 201 1841 15,4501 2,262 130,725 200,059 22,434 122,8861 4,478 204.085 49

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2022 22. SUMMARYOFA55ETS 8Y FUND 2022 Fixed assets TangSble Current Assets Net As5rf5 Investments Credltors £'ooo £'oo Unrestrftted fufids- G•neral 47,905 2.447 3,329 13A601 50,221 UnrestTiLted-deslgnated Afchdeacons DSscretKJnary Ingrow Fund Mission Fund Carbon Reduction Rjnd 14 li 20 621 142 20 621 142 14 783 Restricted Section 554 Edu£8tion Oergy & Dependant5 h8rd5hip funds Bradlord Summer Catnps Local Educational Funds Retreat House sVPPOrtfunds Local Parochial purposes funds Appeals & specific purposes Clergy & lay stipend #ugmentation Church buildin8 repair funds Pistoral Account ManagingTrustees InElefieltl fun(Js Training forrninistry lunds Str3te8ic Oevelopment Fvnd5 Parish Ener8y &Jpport Gr3nt5 khools LCVAP BuildiTrg Piogramme 228 5,693 49 582 65 6,503 114 12 25 37 14 327 163 25 873 51 348 163 83 37 37 14 70 163 396 6,613 51 1,597 891 83 12571 371 5,045 695 1.249 728 3,925 13.9251 923 13.147 6.691 14,1821 16.579 Endowment Permanent 5tipend5 fund captial ExpEndable Benefice houses General Purposes MèintenancE of Ministry Glebe Property Pensions Training for Ministry Clergy & Dependant5 hard5hipfund5 Local Educational Funds Loc31 Parochial purp05e5 funds Glebe Land Church buildinE repair funds Reli8lous Educ6tlon support funds Appeal fund5 & other specific purposès 12.963 386 13,349 92,634 92,634 212 1,121 16,040 212 1,120 16,040 117 889 98 356 4,552 363 156 117 1,242 98 $44 4,552 563 156 43 353 200 41 108,674 20,616 1,381 130,671 Totsl funds 157.502 36,224 12.184 17,6451 198,265 50

LEEDS DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

22. SUMMARY OF ASSETS BY FUND (continued)

2021 RESTATED	Fixed Assets		Current		Net
	Tangible	Investments	Assets	Creditors	Assets
	£’000	£’000	£’000	£’000	£’000
Unrestricted funds – General	48,433	6,104	1,493	(3,816)	52,214
	-----------------	------------------	-------------------	------------------	------------------
Unrestricted - designated
Archdeacons Discretionary	-	16	-	(3)	13
Ingrow Fund	-	-	20	-	20
Mission Fund	-	-	621	-	621
Carbon Reduction Fund	-	-	300	-	300
	-----------------	------------------	-------------------	------------------	------------------
	-	16	941	(3)	954
	-----------------	------------------	-------------------	------------------	------------------
Restricted
Section 554 Education	234	6,444	821	-	7,499
Clergy & Dependants hardship	-	56	40	-	96
funds
Bradford Summer Camps	-	-	1	-	1
Local Educational Funds	-	13	23	-	36
Retreat House support funds	-	-	31	-	31
Local Parochial purposes funds	-	-	14	-	14
Appeals & specific purposes	-	-	283	(218)	65
Clergy & lay stipend augmentation	-	-	142	-	142
Church building repair funds	-	421	65	(85)	401
Pastoral Account	2,781	2,316	3,996	-	9,093
Managing Trustees	-	-	51	-	51
Inglefield funds	-	1,415	369	-	1,784
Training for ministry funds	-	843	53	-	896
Strategic Development Funds	-	-	83		83
Schools LCVAP Building Programme	-	-	3,673	(3,673)	-
	-----------------	------------------	-------------------	------------------	------------------
	3,015	11,508	9,645	(3,976)	20,192
	-----------------	------------------	-------------------	------------------	------------------
Endowment
Permanent
Stipends fund capital	4,219	14,685	1,424	(559)	19,769
Expendable
Benefice houses	85,679	-	-	-	85,679
General Purposes	-	-	212	-	212
Maintenance of Ministry	-	1,268	2	-	1,270
Glebe Property	16,040	-	-	-	16,040
Pensions	-	66	-	-	66
Training for Ministry	-	114	-	-	114
Clergy & Dependants hardship funds	-	1,007	338	(13)	1,332
Local Educational Funds	-	111	-	-	111
Local Parochial purposes funds	-	404	188	-	592
Glebe Land	-	4,616	-	-	4,616
Church building repair funds	-	408	296	-	704
Religious Education support funds	-	177	-	-	177
Appeal funds & other specific	-	2	41	-	43
purposes
	------------------	------------------	-------------------	------------------	------------------
	105,938	22,858	2,501	(572)	130,725
	--------------------	------------------	-------------------	------------------	--------------------
Total funds	157,386	40,486	14,580	(8,367)	204,085
	==========	=========	=========	=========	==========

51

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS l¢ontlnuedl For the yèar ended 31 December 2022 23. DESCRIPTION OF FUNDS Funds Includèd thls category Fund category General fund Purpose The general fund 15 the LDBF'S unrestrFcted undesi8natèd fund available ftrr any of the LD8F's purposes without restiiction. Archdeacons Discretionary Fund Represent5 grants received Set aside to be Ltsed t the drscretion of Archdeacon5. In8rtsw Fund Funds from the bequest of Nora Curry left lor the benefit of the parish of Ingrow. Mission Fund Funds to support future SDF projects and the creaiion of a Parish Growth Fund. Cafbon Reduction Fund Funds to enable adjustments to our bvildn8S that reduce their carbon footprint Sectlon $54 Established under $86 of the Education Act 1993. Capital monies to develop or build new or existing voluntary aided schools or rnaintain such schools or contribute to edtscational purposes. Clergy and dependents hardship funds Funds to provide relief of clergy and their dependents in financial h3rdship. Clergy Stlpend Trust, Clergy Widows and DepenLlents, Queen Victoria Trust. Leed5 Diocese Charitable Society Trust. Aid to Parish Clergy. Widows. Clergy Retirement. EdJcatlon Grants Bradford Summer Camp5 Bursary Fund5 10 provlde suppoii ro chlldren & youths to enable them to attend summer camps in Qdseb of firTr8ncial hardship. Local educational funds For educational purposes in the areas named Shipley cum Heaton District CofE School Trvst, Keighley St Peter Educational Trust Retreat House support Support towards the Diocesan Retreat House funds Friend5 of Parcevall Hall, Parcevall Hall 8ursarv local Parochial purposes funds For general parorhi81 purposes In the area named. North Wing Mission, Guiselev Carleton, Keighley All Saints McNlsh Appeals and special purposes funds Funds comprise Ifonalion5 recelved for specific Interfaiih fund, Youth appeals and purposes, including work In Llnks Evangelism, Special Appeals. Dioceses. Northern sudan. Kadugli Appeal, Church in the World, TM Wright Sud2n relief, St Martin in the Field. Duker (deaf ministry) 52

LEED5 DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2022 DESCRIPTION OF FUNDS Icontlnuedl Fund category Purpose Funds induded In this cate80ry Church building repair fund5 For repairs lo churches of the Evangelical traditTron in the Church of England within the Diocese. The First Lord Grimethorpe Charity, Church building fund. Harrogate Churchès, Church 8uilding Repalr. D3ky bequest Strategic Development Fur>ds major change projects which lead to a Funds 5ignific3nt difference in dioceses, mission and financial strength. Strategic Ministry Funds Provide5 financial support for growth In the number of clergy by funding curates Clerby & lay stipend augmentat1on Funds for the augmentation of clerEY and lay stipend5 Pastoral Account This fund Includes the proceeds of buildings closed for resular public worship, parsonages and lar>d sales. The purpose for which this account rnay be used are laSd down in Section 94 of the Pastoral Measure 2011. Inglèfield Created from sale of Diocesan Retreat House at Barrowby, and assèt5 transferred from the Booker Beouest. Income usecs to aid Diocesan Synod, conferences and theological courses. Training for mlnlstry Income used towards c05t of training ordinands. Re50urcin8 Ministerial Education IRMEI General purposes and Funds from bequests to be used to support adrninistration administration and gener21 purpose5 Maintenance Df ministry Funds fro￿ bequèsts to be used to support stipends in specific parishes Pensions Funds from bequests to be used in supportin8 clergy pensions. Funds to provide church building repair loans Funds tts support the provision of loans to a531St major works to be carried out on church building5. Loan fund, Kiddle Bequest Stipends Fund Capltèl The income of the fund can only be used for clergy stipends Ibut since 1993 capital can be used for improvements t? parsonage hou5e51 and is 8overned by the Oiocesan Stlpend5 Measure 1953. S3

LEEDS DIOCESAN BOARD OF FINANCE NOTE5 TO THE FINANCIAL STATEMENTS Itontinuedl For the year ended 31 December 2022 23. DESCRIPTION OF FUNDS (continued) Fund category Purpose Fund5 Included in thi5 category Glebe Land This fund 15 governed by ihe Endown)ents and Glebe Mea5tJre 1976. It represents the value of agricultural or commercial land in the Diocese. primarily held to generate 51J5tainable incowe to support clergy stipends. Benefite Propertie5 This represents the value of all benefice hou51nB Iparsonagesl in the Diocese after deduciing any loans due on the propertles. Fund5 for support of religious educatlon Income used to support schools work, and to meet the Schools fund, Religious office and travel costs of religious èducalion advisers. education advisor expenses support 24. CAPITAL COMMITMENTS At 31 December 2022 the LDBF had capital expendlture commitments of £274k12021 £104kl which are contratted for but not provided for these financlal statements. 25. OPERATING LEASES Total amounts payable under non-cancellable operating leases are as follows.. 2022 £'ofyJ 2021 eooo Land and bulldlngs Within one year of the balance sheet date In the second to fifth year of the balance sheet date After the fifth year of the balance sheet date 24 95 46 24 95 69 26. POST BALANCE SHEET EVENTS AND CONTINGENT LIA81UTIES There were no post balance sheet events or contin8ent Ilabllities at the Balance Sheet date. 27. PENSIONS Durin8 2021 the LD8F participated in two pension schemes administered by the Church of England Penslons Board, which holds the 355e15 of the scheme5 separately from those of the LOBF and the other par(icipatlng employers. One of these is the Church of England Funded Pèn51ons Scheme fDr5tlpendiary clerey. The other is the Church Workers Penslon Fund. The Church Workers Pension F￿nd has a section known as the Deline(J Benefits Scheme, a deferred annuity section known as Pensioll Builder Classic and a cash balance sertion known as Pension Builder 2014. Church of England Funded Pensron Scheme With effect from l January 1998, diocesan clergy became members of the Church of England Funded Pension5 Scheme. This defined benefit scheme provides benefits based on the National Minimum stipend in the year before their date of retirement and provides for that pari ol the benefit that relates to pÈn5ionable service after l January 1998. Benefi15 are currently beiTh£ accrued on the basis of half of the National Minimum Stipend INM51 being paid as the normal pension on reaching the age of 68 on completion of maximum service of 41.5 years. or 1.25 limes thls amount for archdeacons. plus a lump sum of three times the pension based on the previous yearfs NMS payable from thè scheme. Pension5 in respect of pensionable service bèfore l January 1998 wlll be provided for by the Church Commissioner5 under thè previous arrangements. 54

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 Detembef 2022 27. PENSIONS Icontlnuèdl December 2022 Dècember 2021 Number of members 329 327 Leeds DBF participates In the Church of England Funded pens￿On$ Scheme for stipend¥ary clergy, a def1ned benefrt scheme. Thi5 scheme is administered by the Church of Englan¢J Pensions Board, which holds Ihe ssets of the Schemes separately frorn those of the Responsible Bodies. Each partitipating Responssblè 8ody in the scheme pays contribvtlons at a common contributlon rate Bpplled to pensionable stipends. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means t 15 not possible to attribute the S¢heme'5 assets and liabilities to each specific Responsible Body. and thi5 means contributions are accounted For as if the Seherne were a defined contribution scheme. The pension5 cost5 char8ed to the SOFA in the year are contributions payable towards benefits and expen5e5 accrued In that year, plus any impact of deficit contributions are shown in Note 13 (see also below). A vèluation of the Scheme is carried out once every three years. The most recent Scheme valuatlon completed was carried out at a5 31 December 2021. The 2021 valuation revealed a Surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessèd using the followSng assumptions- An average discount rate of 3.2% p.a. RPI Inflation of 3.6% p.a. land pension increases consistent with thisl- CPIH intlation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030.. Increase in penslonable stlpends in Ilne with CPIH,. and Mortality in accordance with 90% of the 53NA tables, Wlth allowance lor improvements in mortality rate5 in line with the CM12020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter Df 7, an initial addition to mortality ifflprovèments of 0.5% pa and an allowan¢e for 2020 data of 0% li.e. w2020= 0%). Following the 31 Decernber 2018 valuation, a deficlt recovery plan was put in place until 31 December 2022 and the deficit recovery £ontributions las a percentage of pensionable stipends1 were as set out in the table below. An interitn reduttion to deflclt contrlbutions to 3.2% of pensionable stipends was ma(Sè with elfect from l April 2022. Followin@ finalisation of the 31 December 2021 valuation, deficit contributions cèased with effect from l January 2023, 51nce the Scherne was in surplu5. A5 al 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recowery plan force were as set out in the table below. For senior office holdÈrs, pensionable stlpeAds are adjusted i the calculations by a multiple, as set out in the Scheme's rules. % of penslonable Stipends January 2018 to December 2020 11.9% January 2021 to December 2022 7.1% Deficit repair contributions Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no aEreed deficit recovery payment5 from l January 2023 onwards, the balance Sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and (wer 2022 is set out in the table below. 2022 560.000 1335.(M)01 2021 1,108,OLKTr 1562,0001 2,000 12,000 560,000 Balance sheet liability at l Janua¥y Deficit contributton paid Interest Cost Irecognised In SOFAI Remaining change to the balance sheet liability. Irecognised in SOFAI Balance Sheet liability at 31 December 1225,0001 Comprises change in 28reed deficit recovery plan and change in dixount rate and a5sumptK)n between year*nds. 55

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Irontinuedl For the year ended 31 December 2022 27. PENSIONS Icontlnuedl This Ilability represents the present value of the deficit contrlbutions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 ès there are no agreed deficit recovery payment5 going forward. No price inflatlQn a55vmption was needed for DKember 2021 since pensionable Stipends lor the remainder of the recovely plan were already known. Dec 2022 nla n/a nla De¢ 2021 0.0% pa nla -1.5% pa Dec 2020 0.2% pa 3.1% pa 1.6% pa Discount rate Price inflation Increase to total pensionable p3yroll The legal structure of the scheme Ss such that If Responsible Body fails, the Diocese of Leeds could become responslble for paylnE a share of that RespDnsible Bodvs penslon liabilities. Church Worker5 Penslon Fund- Defined Benef￿S Scheme Unril 31 December 2018 the Leeds DBF pariiclp3ted In ihe Deflned Beneflts Scheme section of CWPF for lav staff of ihe former three dioceses. The Scheme Is adminlstered by the Church of England Penslons Bo3rd, which holds the assets of the schemes separately from those of the Employer and the other participatlng employers. The Church Workers Pension Fund has a section known as the Defined Benefits Scheme. a deferred annuity section known as PensioA Builder Classic and a cash bal8n¢e section known as Pension Builder 2014. Defined Benefit5 Scheme The Defined Benefits Schemè I"DBS"I section of the Church Workers Pension Fund prtsvides bènefits for13y staff basèd on final pensionable $313ries. For funding purpose5, the DBS is tlivided into sub-pools in respect of each participating employer as well as further 5ub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certaln risks between employeT5, includ¢n8 those relatin8 to mortality and post-retirement investment retums. The division olthe DBS into sub-pools is notional and is lor the purpose of calculating ongoing contributions. They do Aot alter the kct that the assets of the DBS are held as a single trust fund out oi which all the benehts are to be provided. From time to time, a notional premiurn 15 transferred frorn employers, sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool. The scheme is considered 15 a multi-employer scherne 85 described ID Section 28 of FRS 102. It 15 not Possible to attribute the scherne's assets and liabilities to specific employers, since each employer, Ihrough the Life Risk Pool. is exposed to acluarial risks associated with the current and former employees of other enlities participating in Ihe DBS. This means that coniiibuiions are èCCOLsnied lor as if the S£heme were a defined contrlbulion scheme. The pensiofts costs chaiÈed to the SOFA in the year ale corntribut*ons payable towards benefit5 and expenses acciued in that year, plus any imp6ct of deficit contribution5 are shown in Note 13 (see also below). If. followlng an 3Ctuarlal valuation of the Life Risk Pool. there Is a surplus or deffcft In Ehe pool, further transfers may be made from tho Llfe Rlsk Pool io the employers. sub-pools. or vlce versa. The amounts to be transferred land thelr allocation between rhe sub-poolsl wlll be settled by the Church of England Pensions Board on the advice of the Actuary. 56

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL sTATEmE￿rs Icontinued} For the year ended 31 Deeember 2022 27. PENSIONS Icontinuedl A valuation of DBS is carried out once every three years. The rn05t recently finalised was carried out as at 31 December 2019. In thi5 valuation. the Life Rlsk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employer5, sub-pools to ihe Life Risk Section. This increased the Employer contributions that would otherwlse be payable. The overall deficit in DBS was £11.3m. The next actuarial valuation is currently taking place as at 31 December 2022. Following the 2019 valuation, the Leeds DBF entered into an agreementwlth the Church Workers Penslon Fund for the DBS Schemes as follows.. Leeds DBF IBradfordl DBS Following the valuation, the Di0￿Se of Leed5 hos entered into an agreement with the Church Worker5 Pension Fund to pay expenses of £5,600 pa. Leeds DBF (Ripon & Leed51 DBS Following the v6luation. the Diocese of Leeds ha5 eniered into an agreement wlth the Church Workers Pènslon Fund to pay expen5e5 of £9,500 pa, In addition, deflcSt payments of f 167,766 per year were agreed for 1.25 Years from l April 2021 in respect of the shonfall In the Dlocese of Leeds sub-pool, which has now been cleared. Leeds DBF (Ripon & Leerls Edvcatlon Teaml D85 Following the valuation, the Diocese of Leeds has eniered into an agreement wlth thè Church Workers Pension Fund to pay expenses of £2,000 pa. Leeds D8F Iwakefieldl DBS Following the valuation. the Diocese of Leeds ha5 entered into an a8reement with the Church Workers Pension Fund to pay expenses of £12,500 pa. In addition, deficit payments of £74,091 per year were agreed for 1.92 years from l April 2021 in respect of the shortfall in the Diocese of Leeds sub-pool. Although £I2,oC￿ remained outstandin8 at 31 December 2022 the scheme valuation had improved such that deficit payments ceased at that point. The remaining liability has therefore been written off in these accounts. These obligations have been recognised as 3 liability within the financlal statements. Section 28.IIA of FRS 102 requires agreed dèficit recovery payments to be reeo8nised as a Ilability. The movement in the pro￿s1On is set out below.. 2022 Z021 Balan￿ Sheet liability at l Januarv 169.000 691,000 Deficlt conlributlon pald Inierest cosi Irecognised in SOFA) Remalning change to balance sheet liability'lrecognised in SOFA) I158.(￿0) i.ooa 112,(K)01 1258,0001 I,ocKJ 1265,0001 Balance sheet liablllty 3131 December 169,000 Cornprises change in agreed deficit recovery plan and change in discount rate between ye2r-et)ds. 57

LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMETrThS Icontinuedl For the year ended 31 December Z022 27. PENSIONS Icontinuedl This liability represents the pièsent value of the deficit contrlbutions agreed as at the accounting date and has been valued using rhe following assumptions, set by rèfèrènce to the duration of the deficit retovery payments.. Discount ratè Decèmber 2022 December 2021 December 2020 Leeds DBF (Bradfordl DBS Leeds DBF (Bradford & Ripon Edu￿tIOn Team) DBS Leeds DBF Iwakefieldl DBS Leed5 D8F IRipon & Leeds) DBS nla 0.00% 0.30% n/a n/a n/a 0.00% 1.30% 0.00% 0.30% 0.31Y 0.30% Penslon Bullder Stheme The Pension Builder scheme of the Church Workers Penslon Fund is made up of two sections, Penslon Builder Classlc and Pension Builder 2014, both of whlch are dassed as defined beneflt 5cheme5. Penslon Builder Cla55ic provides a penslon for members for payment from retirement, accumulated from contributions paid and convened Into a deferred annuity during employmeTht based on terms set and reviewed by the Church of England Pensions Board from time lo time. Bonuses may also be declared, depending upon the investment returns and other fattor5. Pension Builder 2014 is a cash balance scheme that provides a lump sum that member5 Use to Provide benelits at retirement. Pension contributions are recorded in an account for each member. This account mav have bonuses added by the Board before retirernent. The bonuses depend on invegtment experience and other factor5. There is no requirement for the Board to Brant any bonusè& The attount, plus any bonuses declared. is p3yable from members, Norm31 Pension A8e. There is no Sub-division of assets between employers in each section of the Pension Builder Scherne. The scheme 15 considered to be a multi-employer scheme as described in Sectlon 28 of FRS 102. This 15 because it is not possible to attribute the Pension Builder Schemè'5 a55ets and liabilities to specific employers and that contributions arè accounted for as il the Scheme were a defir>ed contribution scheme. The pensions costs char8ed to the SOFA in the year are tontributsons p8yable15ee Note 13 and abovel. A valuation of the scheme is carried out once every three years. The most recent valuation was carried out a5 at 31 December 2019. The next valvation is due as at 3L Decèmber 2022. For the Pension Builder Classic section, the valuation revealed a deflcit of £4.8m on the ongoing assurnptions Used. Al the rfiost recent annual review, the Board chose to Eranr a discretionary bonus of io.lyo followir¢g improvements In the fundin8 Posltion over 2022. There Is no requirement for deficit payments at the current tlme. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on thè onÉoin8 assumptions used. There is no requirement for dèficit payments at the current time. The legal structure of the scheme is such that if 3nOther employer fails, the Leeds DBF could be¢ome liable lor paying a share of that employer's pension liabilities. From l Janu3ry 2019 until 30 November 2022 oll lay staff employed by thè LDBF are enrolled in the Pension Builder Classic scheme. On l Dècèmber 2022 the a new Defined Contribution pension scheme (the Flexible Retirement Plan fforn TPT Retirement Solutions) was introduced for all new starters and exist5ng employees were able to transfer across. Contribution rales are the san)e as for the Pension Builder Classii Scheme 8.0% of pensionable salary unmatched, plus up to a further 5.0% matched to employee contributions. 58

LEEDS DIOCESAN BOARDOF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year end•d 31 December 2022 28. RELATED PARTY TRANSACTIONS The Board enters into Iran5aCtions. on a regular basis, with other auturhomous organisations within the Chur¢h of England e.g. Parishes. the Cathedr31s. the Central Boaid of Flnance. the Archbishop5 Council of the Church of England and the Church Commlssioners. From time to time Directors and key managers of the Board may serve on cornmlttees of other bodies. or the General Synod. It 15 not considered appropriate to repori the (Jetail of suth transactions since no person or group of people so serving have any slgnificant influences over any material transactions. There are no unusual transactlons with such bodies feflected in these financial statements. 29. FUNDS HELD A5 CiJ5TODIAN TRUSTEE The LDBF acts a5 Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils IPowersl Mèasure 1956 and the Incumbents and Chur¢hwarden5 ITrustsl Measure 1964 where the m3na8ing trustees are parochial church councils and other5. Assets held in this way are not 388regated in these financial statements as the LDBF does not control them. The financlal assets held in this way may be summarised as follows.. 2022 2021 £000 CBF Church of England Investment Fund income shares CBF Church of England Investment Fund accumulation shares CBF Church of En8land UK Equity shares CBF Church of Global Equity share5 CBF Church of England Fixed Interest Securities Fund shares CBF Church of EAgland Property Fund shares Other cornmon investment fund holdings Direct holdings in UK equities CBF Church of England Deposit Fund 12,511 36 81 581 362 425 670 360 1,781 12.879 37 81 581 369 425 654 3S4 1,770 Total assets held a5 Custodian trustee 16,807 17.150 59