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¢hur 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 8*ven 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 noth*ng 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 pret 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 obsolesfATEMENTS 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 Eduich 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 bvild*n8S 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. Ed*Jcatlon 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