LEEDS DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2023 LEEDS DIOCESAN BOARD OF FINANCE Company number- 8823593 Reglstered charlty number- 1155876 LEEDS DIOCESAN BOARD OF FINANCE TABLE OF CONTENTS Page Numbers Legal Object5 Strategic Report: Strategic Aims Objectives for the year Activities and Achlevements In the year Future plans Financial review Principal risks and uncertalntles 13 Structure and Governance 14 Trustees. Responslbllltles 20 Admlnlstratlve detalls 21 Independent Auditors Report 23 Statement of Flnanclal Activitle5 26 Income and Expendlture Account 27 Balance Sheet 28 Cash Flow Statement 29 Notes to the Flnanclal Statements 30 LEEDS DIOCESAN BOARD OF FINANCE TRUSTEES REPORT 2023 The Trustees, who are a150 DI￿￿or5 for the purposes of company law, present their annual report, together with the audited financial statements, for the year ended 31 December 2023. The Dlrectorsftrustees are one and the same and in signing as Trustees they are also signlng the strategic report sections in their capacity as Dirertors. Thls comblned report sat15fies the legal requirements for: A Directors, Report of a charltable company,. A Strategic Report under the Companles Act 2006: and A Trustees. Annual Report under the Charitles Act 2011. LEGAL OBJEcrs The Dlocese of Leeds is one of 41 Diocese5 which cover the whole of England. The Dlocese Covers West Yorkshire, the western part of North York5hlre, and parts of South Yorkshlre, Lancashlre and County Durham. The Diocese comprises flve Archdeaconrles which form the Episcopal Areas. It covers an area of around 2,425 square mlles, housin8 a population of around 2,642,400. The Diocese has 598 church buildings In 440 parishes with 310 stipendiary clergy, 55 self-supportlng cler8y and 390 clergy with Permi551on To Offlclate I"PTO"l along wlth 294 Readers, 76 authorised lay pastoral minsters and 42 chaplalns. There are also 237 Church of England schools and 11 Multl-Academy Trusts servlng some 64,000 puplls wlthin the Dlocese. The Leeds Dlocesan Board of Finance's I'LDBF'I principal oblectlve Is to promote. asslst and advance the work of the Church of England Sn the Dlocese of Leeds by actln8 as the flnancial executive of the Leeds Dlocesan Synod. The LDBF has the following Statutory re5pon51billties: The management of glebe property and investment5 to generate Income to support the cost of stipends ar151ng from the Endowment and Glebe Measure 1976; The repalr of benefice houses as the Diocesan ParsonaBe Board under the Repalr of Benefice BuildinBS Measure 1972,. The management of Investment5 and the custodians of assets relatln8 to church schools under the Diocesan Board of Education Measure 1991; and The custodians of permanent endowment and real property asset5 relating to trusts held by Incumbents and Archdeacons and by Parochlal Church Councils I'PCU'I as Diocesan Authorlty under the Incumbents and Churchwardens ITru5tsl Measure 1964 and the Parochial Church Councils IPowersl Measure 1956. Iv. The strategic priorltles of the company are established by the Dlocesan Synod in communication with Deanery Synods, PCC5 and the Bishop of Leeds lin respect of hls responslbility for the provlsion of the cure of souls). To thi5 end, significant time and effort is committed to communication between and with these bodies, as well as With the church nationally. LEEDS DIOCESAN BOARD OF FINANCE STRATEGIC AIMS The maln role of the LDBF isto identify and manage thefinancial aspects of ministry and mlsslon wlthin the Diocese, so as to provide appropriate personnel and financial resources to assist the Diocesan synod, Bishop's Council and parlshes to further the mission and strategic priorities in the Diocese. LDBF'S principal activity is to promote, facilitate and a5515t with the work and purpo5e5 of the Church of England for the advancement of the Chrlstian faith in the Dlocese of Leeds. LDBF'S strategy for achieving its objectlves is to develop and maintain a sound financial structure to enable It to contlnue supporting the clergy throu8h the payment of 51ipend5, manage parsonages and other ministerial housin8, and also by providing other facllltles and resources In supportof the mlnlstry of both clergy and lay people in parlshes across the Diocese. Dlocese ol Leeds Stratogy The Dlocese of Leeds has a vlsion for confldent Chrlstlans, who are part of growing Churches and transforming communities. We want to be falthful to our calling to be Bood news, share the Gospel and se￿e wlth steadfast purpose the communities in which we Ilve. We are seeklng to brlng our vision to life through followSn8 the exarnple of the early church. Insplred by the Holy Spirit, the Apostles, Barnabas and other dlsclples prayed for, equipped, mentored, taught and encouraged the local church. We are seeklng to learn from thls as we 8lve every church the chance of moving forward In mlsslon, minlstry and sustainablllty. Drawln8 thls strategy together Into something tanglble, Borngba5.' Encouraglng Confldence draws from exlsting programme structures and learnlnB to determine how resourcin8 should be allocated and where galns In dSsclple-making and leadershlp plpellnes can be most effective. It Is encouraging purposeful investment in priority areas and targeted work in geographical, demographlc or soclo- economic area5 that will brln8 beneflt not only to those area5, but to surroundin8 communities as projects become established and learnings Shared. Barnobos has developed wlth clear underlylng and intentional assumptions that Inform the approach. The first Is people waryt thelr churches to thrive. the second Is that people are dolng the best they can, the thlrd is this work is a portnership between God through the. agency of the Holy Spirlt, and the church. Burnabas needs to offer parishes practical tools to turn deslre into actlon in relation to church vltality, to celebrate what is good and encourage more, and to value and treasure the role of prayer as intrinsic to church vitality. Our hope Is that through appropriate inteNentions, Indlvlduals and churches will be supported to thrive, and to develop the capacity, and ultimately the confidence, to create missional sustainability. The strategic outrome5 Barnabas.. Encguraging Confidence has become the strategic priority for the Diocese of Leeds, acting as a unifying programme to drive forward activity. Whi15t the majority of the important work within the Diocese sits outside of the small Barnabas programme team, all of the functlons of the Diocesan Board of Finance are focused on delivering the strategic visKsn and therefore contribute to the delivery of the strategic outcomes below. This approach to change enables us to drive forward significant change irs a number of places in a meaningful way which impacts on the Diocese of Leeds whilst maintaining progress to achieve the six bold calls of the Church of England vision and strategy. EDS DIOCESAN BOARD OF FINANCE As we seek to live as confident Chrlstians, we want to.. Be confident In our mission - 5UPPQrt for churches to become confident in the use of their buildingi financial and time resources: treatlng more opportunities to be good news in our communitie5. A parish system revitolisedfor misslon Be confident in our future - ensuring our leve15 of clergy deployment are fit for the future. Barnabas enables us to make deployment decisions in a mission led way that can give clergy and churche5 the confldence that the Dlocese Is commltted to their thrivin8. A church which Is younger andfulty represents the communities we Serve Be confident In our leadershlp- 8lvln8 sl8nificant and 5peclfic support around leadershlp and mentoring In the church, both for clersy in their roles, but als0 for church teams moving forward in m15s10n. Christian5 envisloned, resourced ond releosed to live as di5clple5 of Jesus Chrlst, with churches being communltlesfor Inltlol ond ongolngformotlon Be confldent in our witness - encoura8in8 SUPPOrt for all to be confldent In living and telllng the good news of Jesus in a rapldly changlng world. Doubling the number of chlldren ond young octive disciples whllst ￿ vitolising and plontln worshipping communltles OBJECTIVES FOR THE YEAR The obJectives that were Set for 2023 were: Further reflne Barnaba5 and set out In detall the types of support whlch wlll be available for each of the Barnabas strands, bringing together exlstln8 areas of support and addin8 further elements as needed and Identifled; Seek fundlng from the national church for Barnaba5, whilst contlnulng to focu5 and deliver on our wider ministry respon51bilities a5 well as our statutory and legal obligatlons; Continued support for nationally funded resource and re50urcln8 church project5, along with the establlshment of a portfollo board to oversee strategic projects: Contlnue to focus on supporting churches in children and youth enBaBement, with a bld for speciflc resource to SUPPOrt work In Wakefield as well as contlnued wider offers of help,. Progress plans to implement the recommendations of Lament Into Actlon Including seeklng the appointment of a Raclal Justice Officer,. Increase focus on Net Zero Carbon I'NZC'I activities. including developlng fundin8 plan5 and utllising National Church funds to provide focused support for churches, 5thools and clergy properties- Implement plans for maximising the potentlal of current property assets to support financial. environmental and social objectives as highlighted by the Archbishops, Commi55i0n'5 Comin8 Home Report. Actively 5UPPOrt all Church schools and academles to be deeply Chrlstlan places of learnin with stron& transformational relationship5 between parlsh and school community* Review supplier contract5 for key diocesan seNices and ensuring they provide value for money; and Roll out recruitment hub as part of the Safeguarding Dashboard. LEEDS DIOCESAN BOARD OF FINANCE Through carrying out these objectlves and in promoting the whole mission of the church Ipastoral, evangellstlc, social and ecumenicall the Trustees are confidellt (having had regard to Charlty Commission guidance) that LDBF delivers public benefit through community engagement, resourcing education and supportin8 those in need both splritually and physically. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Support for the Diocese's mission and strategic alms Is delivered by the Bishop and his senior team through the LDBF Board. The team is supported by a number of key advlsers Including Legal. HR. Finance, Education, Property and Safeguardin8. The role of those employed to work in the central support of the Diocesels largely to.. support and enable parishes in their engagement wlth their communities- dvi5e and support the Synod, Leed5 Board, Bi5hop'5 Staff Team and Board of Education in the formatlon of policy for the Diocese: support church schoo15, further and higher educatlon Instltutlons in terms of governance, religious education and collectlve worship, and buildings development,. ensure suitable provision and tralning for the safe8uarding of children and vulnerable adults,. traln and advise those holdlng posltions of offSce and leadership in the Diocese,. 5UPPOrt the dlscernment, selectlon, recrultment, and training for those enterlng Ilcensed and authorlsed mlnlstry,. undertake the statutory work of the Church of England in the Dlocese of Leeds and the statutory work of the LDBF; and engage In the work undertaken natlonally and internatlonally through support and representation on national boards, committees and worklng groups. These oblectlves have been met In 2023. Key achievements Include: All teams continued to meet the LD8F Key Performance Indlcators and wlder buslness plan objectives, many dolng so whllst carrylng vacancies at polnts In the year. Thls Is testament to the commitment and hard work of the teams, who are Incredibly dedicated and professlonal. All of the successes, of whlch only a small fractlon are115ted below, are only posslble due to the quality and capabllity of our team. The LDBF received an initial commitment of £3.9m for the flrst Stage of 8arnoba5.' Encouraglng Confidence (of which £88k wos received in 2023, See accounts note 2 - Dloceson Investment Progromme gronts). Thi5 funding has enabled us to recrult the programme team and build capacity as we develop the pro8ramme. A core team is now in place and building the key components of the programme. Early roll out of courses around leadership, mentorin8 and personal growth'have begun and wider 5UPPOrt for churches is now being dellvered,. The initial bid contained £lm for 'Every Good Work. a project focused on increaslng the number of young people engaged with our churches in Wakefield. Three workers have been re¢rulted and the project Is on track. The project seek5 to grow links between schools and churches and focuses on engagement and leadership as young people grow In falth: Barnobus was also given funding to develop projects in Leeds, Huddersfield and Ripon as part of the wider indic3tive commitment to fund the delivery of the overall strategy over the next nine years. We antlcipate further blds in 2025,. A new portfolio Structure wa5 introduced to ensure effective governance of Barntibas and the wider Strategic Development Funding I'SDF") resource programmes. These all remain on track to dellver anticipated outcomes,. We have recruited to the Children and Young Peoples team using 8arnobas funding to bulld our schools engagement with Growing Faith. This will support Increased join up with our dlocesan education team to deliver on our commitment to growin8 younger os a church,. LEED5 DIOCESAN BOARD OF FINANCE Work be8an on a Raclal Justice strategy workin8 collaboratively with the Global Minority Heritage reference group In the Diocese. Plans for a Racial Justice bid. which will include a Racial justice Officer as well as a number of other important projects, are advanced wlth a bid in early 2024 belng made; The NZC strategy was refreshed and endorsed again by the LDBF Board. We successfully applled for a small grant from the National Church to bring in consultant expertlse to analyse funding opportunities and provlde grant application training to staff. Afurther bid for resource from the National Church wa5 successful, which has enabled an increase in capacity within the NZC team. Work has begun on demonstrator projects around churches and clergy property refits. Delivery remains a high priority although at present there remains wider funding challenges to dellver all the changes,. The property team has made good progress in identifying sites across the Dlocese that have potential for development. A number of sites have moved towards Sale and contract and we anticipate that the Income generated wlll exceed costs in 2024 and this will continue in future years,. The property team procured new contracts for heatlng/plumbing and electrical work, whlch has driven conslstency and prlce competltlvene55: IT chpacity and capablllty has been built whlch posltlons the DBF well Sn 2024 to retender a number of key systems and 5UPPOrt contracts to ensure best value; Support for schools has continueé to be high, with the Education team providing exceptlonal support. Sat15factlon remains very hlgh197%1 and can be demon5troted by both feedback ond continued si8n up rate5 to the Enhanced Support Programme, which is a pald for service,, The safeguar(iln8 dashboard contlnues to see increased uptake in Parishes and further support has been offered through the recrultment hub,. and DBF staff moved from the 2. and 3, floors of Church House to con5011date on the l floor. This has improved collaborative workln8 as well as generatln8 efficiency and revenue generatlng opportunltles. Volunteers The Dlocese of Leeds Is dependent on the huge number of people Involved in church activlties both locally and at diocesan level. We belleve that the number of actlve volunteer5 lor volunteer hours) given to the mission and minlstry of the church Is a key indicator of the health of a church. The servlce provided to a community through church volunteerlng also has a signiflcant Impact on people's relatlonshlp to the church partlcularly at tlmes of crisis. We greatly value the conslderable time and support 8iven by all the volunteer5 across the Dlocese in pur5uIt of our m155ion. We do not include an estimate of the financlal value of volunteering time in these accounts. FUTURE PLANS The major budget element contlnues to be dlrected toward5 SUPPOrting ministry and mission in every parish. The Trustees will contlnue to set annual budgets as appropriate and in Ilne wlth the reserves policy. The onEoing objective 15 to resource diocesan needs, as determined by Synod and Informed by local and National Church Institutions. In addition to the day-to-day attivities of the LDBF. during 2024 we will.. Seek to implement Barnabas, identifying emerEinE theme5 and expanding the offer, whilst ensuring there continue5 to be robust reporting 5Y5tems in place- Refine plans for further projects in episcopal area5 and beginnin8 to pilotltest in advance of bid5 in 2025- Focus on continued improvement of training provision for parishes in relation to safeguarding as well as encoura8in8 increased use of the Safeguarding dashboard and hub,. Review all employee policies and look further at clergy wellbeing related policies. LEEDS DIOCESAN BOARD OF FINANCE Develop a communications strategy with detoiled 5tskeholder grld and accessible annual report; Support the development of distinctive Christian vislon and leadership in our church schools and Trusts with a key focus on effective governance at all levels as,a form of discipleship and vocation; Implement key system changes In Flnance, Property and IT to ensure sustainable, secure and robust systems in place- Roll out Stock Condition Surveys across the entire property portfollo,. Support the ongoing delivery of the multi-year land development plan. whlch wlll see the first sites brought to market and contracts exchanged,. Promote ethnlc dlversity. combat raclal Injustice and enable wldenln8 participation in ministry nd missional engagement; Continue to focus on the implementation of the NZC Action plan,. Improve the use of data to drive dec151on making across all aspects of the LDBF'S work,. Continue to develop plans to drlve up parish en8agement wf(h best stewardshlp practice and Implement a new deployment process which ￿fleCt$ the ftnanclal reallty; and We will mark and celebrate 10 years of the Diocese of Leeds. Thls will give us the opportunlty to recognise all that has been achieved and to evaluate the wider beneflts reallsed slnce the creatlon of the Olocese In 2014. These plans are a snapshot of our focus for the comlng year. In dellvery of our work we hold our values- and commlt to acting in the following ways.. Lovln8- we will telebrate success and appreclate the commltment of colleagues. Leaders will remain acce55ible and visible. LlvlnB- we will be p￿sent and personally engaged In our work and the work of others in Church House. Learnlng- we will be open to exploring new ideas, to Ilstenlng to feedback and to learnln8 from thlngs whlch go well, and not so well. LEEDS DIOCESAN BOARD OF FINANCE FINANCIAL REVIEW Flnancial Performance In 2023 the LDBF recorded a net deficit before investment gains of £1,518,000 on unrestricted funds. This was £746,000 berter than the prior year12022.- £2,264,000 deficit). The 2023 deficit includes income from the proceeds of a legal settlement relating to the historic Linda Box fraud case which, together with a reduction in expenditure, has offset reductions In Parlsh Share and funding from the Natlonal Church. The Parish Share request for 2023 was £15,749,OQKI12022: £15,464,C(()l and receipts relatlng to the 2023 request amounted to £11,792,0￿ {2022- £12,082,000), representing a collection rate of 74.9% 12022.. 78.1%). In addition, Parish Share receipts of £181.000 were received against the hlstorlcal share outstanding from previous years12022: £181,000) and voluntary contributlons of £97,000 were made 12022.. £166,000). Note 2 to the flnanclal statements has been prepared In accordance with the guidance agreed nalionally to show the total receipt of Income from parlshe5 Includlng receipts for a previous year. The Trustees are grateful to all parlshes for their Parish Share payments and especially to those parishes that make their Parlsh Share payments by monthly Instalments, whlch Is essentlal in controllln8 the Diocese's cash flow. Expenditure from unrestricted funds on charitable actlvlties (iecreased by £408,000 to £21,732,OOJ 12022.. £22,141,000). Thls was largely due to a reductlon In pension contributions followin8 favourable valuations of the pension schemes. Across all the funds, the capital value of Investments increased by £1,838,C(1012022.. £4,198,OCK) decrease). Of the increase, £233,000 related to unrestricted investment$12022'. £317,000 decrea5el. In order to support the unrestrlcted posltlon, fund transfers were made from restricted funds where expendlture was incurred wlthin the general fund that was ellgible for those funds. Two propertles wlth a comblned value of £670,ODJ were transferred from Benefice Housln8 to unrestricted fund5 during the year following the completion of Pastoral Schemes. The properties wlll continue to be used to provlde clergy houslng If required but sold or rented out if no minlsterial need exists. In line wlth the pollcyforflve yearly revaluatlons, land and property has been revalued at 31 December 2023 resulting in Increases on property values of.£18,092,000 Ilncluding a £825,CKJO upllft to the value of Church House, Leeds) and land of £3,604,0(KJ. As a result, the value of assoclated value-linked loans ha5 a150 increased by £279,000. The net Impact on unrestrlcted funds is an increase of £5,320,OLK). A5 a result of the above, there was an overall funds Increase of £23,010,000 12022: £5,820,￿0 decre3sel of whlch £5,587.OtKJ12022: £1,993,000 decrease) related to unrestricted funds. The Trustees have prepared a budget for 2024 based on a 4% Increase In stlpend and salary costs lalbeit 6% has subsequently been awarded) and targeting a share collection rate of 81.4%. Including the transfer of £1,150,0￿ from restricted reserves to fund applicable activities, the budget is for deficit of £823,000. However, given the ongoing financlal pressures on churches and the Diocese alike. achieving the targeted share collectlon and maintaining costs wlthln approved budgets will not be straightfoNard. It is expected that property sales will be used to 5UPPOrt the cash and free rèserves Position. LEEDS DIOCESAN BOARD OF FINANCE External fartors affectlnE perfomlanee The Parish Share, which is contributed by PCC5 toward5 the ministry and other costs of the Dlocese, Is a voluntary contribution and is budgeted to provide 63% of the Diocesan income in 2024. Prlnclpal fundifig sources In 2023, 59.7%12022.. 62.6Yol of unrestritted income of the LDBF came from the Parish Share and 13.2%12022: 15.0%) from the National Church. Financlal sustsinability LDBF has sound financlal management, however, theTrustees remain conscious of the rlsks associated with the Parish Share fund collection and Inflatln8 cost5 and therefore Its ablllty to adequately resource diocesan activity. Whilst Parlsh Share collection has Improved from the lows of 2020 and 2021, it remains below the pre-Covld-19 leve15. It now seems unllkely that Parish Share wlll return to levels seen in 2019 for somè time. However, the Trustee5 are confident th15 can be absorbed through a comblnation of reductions In expenditure,. the receipt of Natlonal Church liquidlty support (automatically provlded to all quallfying dloce5esl,- the appropriate utillsation of both unre5trlcted and restricted reserve5 le,8. Pastoral Fund and Stipends Fundl,. and the time-llmlted sale of surplus propertv. Goln8 con¢èrn The flnancial statements have been prepared on a going concern basls. The Trustees have taken note of the guldance Issued by the Financial Reportin8 Councll on Going Concern A55e55ments In determlnlng that thls 15 the appropriate basls of preparatlon of the financial statements and have considered a number of factors. As noted above, the legacy of the Covld-19 pandemic and the high Inflatlon experlen¢ed In 2022 and 2023 has created a number of financlal challenges that contlnue to be navigated. The Trustees are confident that the Balance Sheet remalns strong and is sufflcient to absorb deficits that may arlse over the near term. A Cost Review was completed In early 2021, whlch provSded a structure to balance the budget over the longer term. Addltionallyj in autumn 2022 the Board agreed a higher level of restrlcted fund transfers li.e. from the Pastoral Account, S554 Fund and Stipends Capital Fund where spending criteria Is metl for up to five years to support the unrestricted posltlon. In 2023 the Board approved the adoptlon of Total Return Accounting from l January 2024 in order to enable some of the capltal growth in the Stipends Capltal Fund to be used to support the operatlonal bud8et. As a consequence,. the Trustees have a reasonable expectatlon that the Company has adequate resources to continue In operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis In preparing the annual report and accounts. Key Management remuneratlon pollcy The policy for remunerating key mana8ement Is in accordance wlth the salary scales approved annually by the Leeds Dlocesan Board. Slgnlficant Property Transactions The net book value of land and buildings purchased and disposed of durlng the year totalled £1.645,fXJO and £3,976,000 respertively. The Leeds Board's poliLy is: to replace unsuitable propertles,. to accommodate the changing geographical deployment of clergy withln the Diocese,. to dispose of propertie5 for which there is no ministry need and which do not provide rea50nable investment returns,. and io LEED5 DIOCESAN BOARD OF FINANCE to realise development potential in some properties, thereby using our resources more effedlvety for the ministry of the Church. During the year three properties were purchased, one as a replacement parsonage property, one DBF property to replace an existlng curate property and one glebe property. Also during the yearel8ht properties were sold. Of the propertles sold, six were DBF properties (either belng Surplus curates, properties or former vicarages transferred to the DBF as part of pastoral schemes) and two were parsonage properties where replacement propertles had been purchased. Addltlonally, one property was transferred to the Diocese of Blackburn following pastoral reorganisation. Balance Sheet posltlon The Trustees consider that the Balance Sheet together wlth detaiSs in note 23 show broadly that the restrlcted and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. Whlle the net assets at the Balance Sheet date totalled £221.3m12022: £198.3ml, it must be remembered that Included In thls total are propertles, mostly in use for the minlstry, whose value amounted to £173.6m12022'. £157.5ml followinB the revaluatlon at 31 December 2023. Much of the remainder of the assets shown In the Balance Sheet are held In restrlcted and endowed funds, and cannot nece55arlly be used for the general purposes of the LOBF. Reserv•s poll¢y Free reserves The ReseNes Pollcy sets a target free reserves range of £4.Im to £5.5m. The lower bound15 based on n analysis of income sources and their potentlal vulnerablllty agalnst budgeted performance the largest portlon of thls relatlnB to Par15h Shore1£2.6ml. The upper bound remain5 based on 3 months bud8eted unrestrlcted expendlture for the followin8 flnancial year. The Trustees defTne the free reserves as the Unrestricted Net Current Assets plus the unrestricted un115ted investments. Actual free reserves as at 31 December 2023 totalled £5.9m12022: £5.2ml. The Increase from 2022 15 due to the sale of unrestrlcted propertles and the increase In Investment valuatlons, partly offset by the operating deficit. Reserves tled up Inflxed ossets The general fund comprlses net assets amountln8 to £55.8m of which £52.9m relates to tanglble fixed assets, £2.7m investment5 and £3.6m current a55ets, partly offset by long-temi Ilabillties of £3.4m. De5ignotedfunds The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where thls Is considered to be prudent. Such deslgnated reserves are reviewed on an annual basls 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 reserve together with the Intended 4Jse of the reserve Is set out In note 23, At 31 December 2023 total desi8nated reserves were £794,OQKI12022: £794,(KJOI. li LEEDS DIOCESAN BOARD OF FINANCE Restrirted und endowmentfunds As set out in note 22 LDBF holds and admlnisters a large number of restrlcted ènd endowment funds. As at 31 December 2022 restricted funds totalled £17.8m 12022- £16.5ml and endowrnent fvnds totalled £146.9m12022: É130.7ml. These funds are not avallable forthe general purposes tsf the LDBF. Grant maklng pollLy Grants are made to the National Church to cover a proportion of it5 central costs and also to cover the cost of training for ministry (see note 12 to the financial statements). Grants are paid to other connected charities and to other charitable projects, whlch support the furtherance of LDBF'S objectives. Fundralsln8 The LDBF provldes guldance to the parlshes wlth regards to fundraislng, but does not engage In fundraisin8 actlvltles itself. Due regard is 8iven to the Fundraisin8 Code of Practlce set by the Fundralslng Regulator when providing advlce to the parishes. Investment pollcy LDBF'S investment pollcles are based on two key pollcles: The Trustees have a pollry to Invest In accordance wlth the ethlcal Investment pollcy of the Church of England Ethical Investment Advlsory Group - thls Includes en5urlng that Snvestments are held In companies, whlch have hlgh standards of corporate 8overnance and act In a responsible way towards stakeholders. Long.term responslbllltles - the Trustees are aware of their long-term responsiblllties in respect of endowed funds and as a result follow a Correspondlngly prudent approach to investment decislons. Investment policy for long-term funds is aimed primarlly at 8enerating a sustainable Income with due regard to the need for the preservation of capital value and the possible need to realise investments to meet operational needs. The glebe Investments are held for the purpose of ralsln8 Income to chleve the maxlmum contribution p055ible to clergy stlpends on an ongoing basis. Unrestrlcted and restrlcted fund Investments are Invested to balance Income, liquldity and the malntenance of capital. The LDBF Is empowered by Its memorandum of association to Invest monies not Immedlately required for Its purposes. In addition, the LDBF acts as trustee of a number of trust fund5, and these must be invested in accordance with the related trusts. The LDBF'S pollcy is to review regularly the assets of each fund for whlch It Is responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Note 23 provides deta115 of the assets of each fund, together wlth the related purposes, and Note 17 summarises the movements in investments during the year. The CCLA investments total return performance a8alnst the benchmarks In 2023 were: Fund 12.57% -1.19% Benchmark 13.28% -2.38% C8F Church of England Investment Fund CBF Church of England Property Fund The five year performance agalnst the benchmark and the benchmark composites are avallable from the CCLA and can be found on their website hi ..Ilwww. cbf-chur¢h-ett in- wnlo8d?inline 12 LEEDS DIOCESAN BOARD OF FINANCE PRINCIPAL RISKS AND UNCERTAINTIES The Trustees are responsible for the identification, mitigation and/or management of risk. To achieve thi5 a risk register is maintained, which includes all risks Identlfled, along with owners. mitigating actions and review dates. The register Is malntained by management on an ongoing basis and 15 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 strategles Identified by the reglster are delegated to the Diocesan Secretary. The risk register identifie5 key areas where the risk of either failure to act or the impact of the events Is considered 'hlgh' These areas and the associated mitigation strategies are.. Par15h Share.. Collection is conslderably less than the budget resultlng in a deflclt on general funds. Accurate budReting of Parish Share receipts to enable expenditure to be appropriately 3li8ned,' Collectlon statistics are produced and circulated on a monthly basls to track performance and Identlfy potentlal Issues early; Area personnel are expressly tasked with Identlfying, reporting on and supportlng those parlshes where there Is consldered to be a significant rlsk of under-collectlon. FAnonciol Rlsk.. The rlsk of falllng to achieve approved budget or havln8 Insufficient Ilquld resources to meet liabilities as they fall due, The flnanclal posbtion Is closely monltored at department level. wlth re8ular reports clrculated and regular meetln8s held wlth budget holders by the CFO andlor Flnance Mana8er,' Regular reporting to FAIC and the LDBF; A Cost Review exercise wa5 presented to the Board In February 2021, which Identlfled three levels of cost savlngs to ensure a balanced budget Is achleved over the next four years; A clear purchase authorisation process Is In place.. and The Implementatlon of Total Return Accountln8 from l January 2024 In order to enable some of the capital growth In the Stipends Capltal Fund to be used to 5UPPOrt the operatlonal budget. Sofeguording & Incluslon., Where there Is an occurrence of chlld, vulnerable adult or domestlc abuse by Someone working for or on behalf of the Church or involved in the Ilfe of the Church. The Diocese employs a strong safeguardlng team that includes 5peciallst tralnin8 SUPPOrt; Policies are aligned with those of the national church; All parishes are instructed to adopt and Implement the Natlonal Church's safeguardlng policy* Training 15 compulsory for all relevant staff and volunteers - failure to complete the tralning results in the removal of the ablllty to undertake roles and functions- A new 53fe8uarding case management system has been Implemented, alon8 Wlth safeguarding dashboard for all parishes to use,. and The Diocesan Safeguarding Advlsory Panel, with an independent chalr, continues to provide overslght on pollcy and practice. 13 LEEDS DIOCESAN BOARO OF FINANCE STRucfuRE AND GOVERNANCE Summary Infomiation about the structure of the Chur¢h of England The Church of England is the established church and HM The Klng Is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 41 Dioceses. Each Diocese is a See under the care of a Bishop, who is charged wlth the cure of Souls of all the people within that geographical area. Thls charge Is shared wlth prlests within beneflces and parlshes, whlch ore sub-divisions of the Diocese. The Natlonal Church has a General Synod comprlsed of ex-offlcio and elected representatlves from each DI0￿Se. It agrees and lays before Parliament measures forthe governance of the Church's affalrs which, If enacted by Parllament, have the force of statute law. In addition to the General Synod, the Archblshops, Council ha5 a coordinating role for work authorised by the Synod: the Church Commissioners manage the historlc assets of the Church of England- and the Church of England Penslon Board admlnlstersthe pension scheme5 for cler8y and lay worker5. Each Diocese is episcopally lead and synodically govemed. The D5ocese itself Is dlvSded into 21 deaner5es, each wlth Its own Deanery Synod. Within each parlsh there Is a parochial church councll, whlch shares with the parish prlest respons5blllty for the mlssion of the church In that place, In a slmllar way to that in which the B15hop shares responsibllltSes with the Dlocesan Synod. Whllst each Dlocese Is a separate legal entity wlth a clear responslb115ty for a speclflc geographlcal area, being part of the Church of England requlres and enables each Dlocese to seek support from and appllcation for partnership with nei8hbourin8 Dioceses. Parochlal Church Councll {"PCC°I The PCC Is the elected governlng body of an Indlvldual parlsh whlch broadly Is the smallest pastoral area in the Church of England. Typically, each parish has one parish church. The PCC is made up of the incumbent as chalr, the churchwardens and a number of elected and ex offlcio members. Each PCC Is a charity and, in compliance wlth the Charities Act 2011, the malorlty of PCCS are currently exempt from registration with the Charity Commission. Since October 2008 all Pccs Wlth Bfoss income above £ico,oc(I for the year are requlred to reglster wlth the Charity Commlsslon. Except where shown, the transactlons of PCCS do not form part of these financlal statements. Flnanclal statement5 of an indlvldual PCC can be obtained from the relevant PCC treasurer. Parlshes A beneflce Is a parlsh or group of parlshe5 served by an incumbent who typlcally receive5 a stlpend and use of a parsonage house from the Diocese for carryln8 Out their duties. A deanery is a group of parishes over which an Area Dean has overs5ght and an archdeaconry is group of deaneries for which an Archdeacon Is responslble. The Diocese is then the priricipal pastoral. and in turn financial and administrative, resource of the Church of England, encompassing the various archdea¢onrie5 under the spiritual leadershlp of the Dlocesan Blshop. 14 LEED5 DIOCESAN 80ARD OF FINANCE Organisatlonal structure The Leeds Diocesan Board of Finance I"LDBF"} is a company limited by guarantee INO. 88235931 and a registered charity {No. 11558761 governed by Its Memorandum and Articles of Assotiation. The CoMpan￿S prlncipal activity is to asslst, promote and further the rellgious and other charitable work of the Church of England within the Diocese of Leeds. It was incorporated in December 2013. The Members of LDBF under company law have a personal liabillty Ilmlted to £1 under their guarantee as company Members In the event of it being wound up. Governance and pollcy of the Dlocesan Board of Finance is the responsibility of the Diocesan Synod members, who are 0150 members of the company. Following the change5 in governance approved in March 2015, the Bishop of Leed51s the ex-officio Chalr of the Dlocesan Board of Finance. The trustees are the Diocesan Blshop, 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 elected from and by the members of Dlocesan Synod every three years, alon8 Wlth flve people nomlnated by the trustees of the Dlocesan Board of Finance and ratified by the Dlocesan Synod. The most recent general elections were held in September 2021 and casual vacancy electlons in March 2023. The m05t recent trustee nomlnation was ratlfled In March 2022. The details of Trustees who Se￿ed durln8 the year are set out on pa8e 21. The Dlocesan Synod, the statutory 8overnlng body of the Dlocese, Is an elected body drawn from across the Dlocese wlth responsibility for settin8 the vision and Strategy of the Diocese, guided by the Leeds Board. The Dlocesan Synod membership Is elected every three year5, the last general electlon5 havlng been Aprll June 2021. The Synod elects slx of the 21 Trustees of the Diocesan Board of Finance, and ratifies the nomination of a further flve members. The approprlate House of the Synod elects the Chair of thelr House. The Chalr of the House of Clergy and the Chalr of the House of Laity of the Diocesan Synod are ex-offlclo members of the Leeds DBF. The LDBF is a separate legal entity with 80verning memorandum and artlcles of associatlon and has clear re5ponsibllltle5 under both company and charlty law. Additionally. the LDBF is subject to the directlon of the Synod in all its activitles, unless such directlon is not in accordance with the governing documents or statutory regulations, The maln feature5 of the Diocesan Synod approved governance model are.. Dlocesan Synod membersare the Members of the LDBF company. There Is a slngle Board that combine5 the functions of the Standing Committee of Synod, the LDBF, Bishop's Council, Diocesan Mission & Pastoral Committee and the Parsonages Board, thereby bringing together all major pollcy, strategy and financial issues into one forum. The core of this Board is a set of Trustees elected and selected for their skills, experlence and background appropriate to the nature of the business in hand. Area Mission & Pastoral Sub-committees with delegated responsibillties enabllng priorities for Misslon and Ministry within each episcopal area to be determined locallyi Wlth local representation from deaneries. Advisory groups designed to enable lay and clergy input to all aspects of Dlocesan business on an enduring or as required bas1S. Declslon-makinB strurture The Board Is the Standing Committee of the Synod and addresses the issue5 of strategles, policies and prioritie5 lincludin8 all financial aspects) needed to Implement the overall vision. It is accountable dlrectly to the Synod and Includes all the functlons of the traditional statutory boards. 15 LEEDS DIOCESAN BOARD OF FINANCE The Diocesan Mlsslon and Pastoral Committee delegates significant responslbilities relating to mission and pastoral artivities to Area Mission & Pastoral Sub-commlttees, thereby enabling the Area Bishops with local representatives to fomulate local priorities. Deanery Synods are represented on Area Mlsslon & Pastoral Sub-commlttees and these are reflerted in the Mission & Pastoral Constitution. The Dlocesan Advi50ry Committee and the Strategic 5afeguardlng Committee are highly specialised in their work and content, and these remain as separate entities. Each Are3 Bishop is accountable to the Diocesan Bishop forthe delivery of Mission and Ministry within the Area in line wlth delegated responsibllltles lald down In Instruments and other formal measures. The Dlocesan Secretary Is accountable for the function5 of offlcers and employed staff In supportlng parishes and Area Teams. Dlocesan Synod has delegated the following functions to the LDBF: Mana8ement of the funds and property of the Diocese; Preparation of annual estimate5 of expenditure,. Advisin8 on action needed to ralse the income necessary to finance expenditure; Overslght of expendlture by bodies In receipt of Diocesan Synod's funds against estlmate5 of expenditure approved by Diocesan Synod,. and Advising Diocesan Synod of the financlal aspects of its pollcy and on any other matters referred to It. Commlttee structure Leeds Diocesan Board of Finance The Leed5 Diocesan Board Is the formal Bishop's Councll, Dlocesan Board of Flnance, the Dlocesan Mission and Pastoral Committee and Parsonage Board; Its member5hlp Is set out on page 21. Trustees are provided wlth Inductlon guidance when first appolnted and receive on8oin8 training, as appropriate. Some senlor staff have lob titles Incorporatln8 the tltle 'Dlrector' but they are not Trustees of the company for the purposes of company law. Dlocesan Board of Educatlon I"DBE"I The DBE consists of the diocesan bishop, four members appointed by the dlocesan bishop (to Include: an area bishop, an archdeacon, two members of the Leeds DBFI, two members elected by the Diocesan Synod, at least four but no more than six members co-opted by the DBE and up to two members co-opted by the DBE to fill any casual vacancies in those elected by the Diocesan Synod. The DBE oversees the setting of education strate8y and reviews progre55 on an ongoing basis against this. The DBE has sub-committees with partlcular responsibility for Finance and Education 8ulldlngs. Dlocesan Advisory Committee I"DAC"} The DAC advises on matters affecting churches and places of worship such as the granting of faculties, architecture, archaeology. art and the history of places of worship, the use and care of place5 of worshlp and thelr contents and the care of churchyards. Audit Committee The Audlt Commlttee conslsts offlve member5. one ofwhom must be a memberof both the Flnante Assets and Investments 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 consldering the appointment of the external auditor, the revlew and agreelng of the annual report ond accounts before submission to the 8oard and the review of the effertiveness of internal control systems. 16 LEED5 OIOCESAN BOARD OF FINANCE Diotesan Mission & Pastoral Committee I"DMPC"I The membershlp of the Diocesan Mi55ion and Pastoral Committee is the Leeds Board members wlth the exception of the five Area Bishops. The four Archdeacons who are non-Leeds Board members are ex officio member5 of the DMPC. The DMPC 15 a statutory body as set out in the Mission and Pastoral Measure 2011. The DMPC has delegate(l its function5. Wlth the exceptlon of those which may not be delegated under the Mission and Pastoral Measure, to five Episcopal Area Mission and Pastoral Committee5. Diotesan Safeguarding Advi50ry Panel The Panel include5 an independent chairperson, the Diocesan Bishop, an Area 81shop, the three Cathedral Deans, an Archdeacon, the Lead Officer responslble for safeguardin& the Diocesan Secretary, the Reglstrar, the Director of Mlnlstry and Mi551on and indlvlduals representing external agencies involved in safeguarding. The Panells responslble for the overslght of policyi procedures. training and guidance to the dlrectors, diocesan officers and parlshes on safeguarding matters and is accountable for safeguardlng work throughout the Diocese. Finance, Assets and Investments Committee I'FAIC'I The Commlttee's composltion Is at least three members of the Leeds DBF, plus up to seven members nomlnated by the Leeds Board. The Chalrperson must be a member of the Leeds Board. The FAIC monltors the monthly management account5, the preparation of the budget and sustalnablllty plan, the progress of major property sales, the performance of Investment assets and development of strategic projects, Property Committee The Committee consists of a Chairperson appointed by the Dlocesan Blshop, the flve Archdeacons, one clergy person elected by the House of Clergy of the Diocesan Synod, one clergy person Iwlth relevant sklllsl appointed by the Leeds Board, two lay people elected by the House of Lalty of the Diocesan Synod, four lay people Iwlth relevant sklllsl appolnted by the Leeds Board, one lay person appolnted by the Leeds Board, one clergy person lor lay person If the Chair is clergy) co-opted by the Commlttee and one lay person lor cler8y if the Chair is layl co-opted by the Committee. The Property Commlttee Is responsible for carrylng out the deleBated functions of the Parsonage5 Board under the Repairs of Beneflce Buildings Measure 1972 and under the terms of its constitution ond subjert to any direction5 glven by the LDBF Board, overseas the management, maintenance and upkeep of all property assets of the LDBF. The Committee is also responsible for the ensuring the obli8ations of the LDBF as custodlan trustee are met in respect of propertles held by PCCS. In practlcal terms th15 includes overseeing the development of polices and strategles, monitoring their Implementatlon and reportin8 on thi5 to the LDBF Board, and reviewing and approving property transactlons. Dele8atlon of day to day delivery The Trustee5 ond the committees and advi50ry and scrutiny groups which assist them in the fulfllment of thelr responsibilities, rely upon the Diocesan Secretary and his colleagues for the delivery of the day to day activities of the company. The Dlocesan Secretory is given speciflc and general delegated authority to manage the buslness of the LDBF ir) accordance with the policies framed by the Trustees. Funds held a5 Custodlan Trustee The LDBF is the custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and churchwardens (Trusts) Measure 1964 where the managing Trustees are parochial church councils and others. These assets are not 17 LEEDS DIOCESAN BOARD OF FINANCE aggregated in the financial statements as the LDBF doe5 not control them, and they ore segregated from the LDBF'S own assets by means of a separate bank account and accounting system. Further details of financial trust 055ets. whose market value amounted to £15.931,ODO at 31 December 2023. 12022: £16,807,000), are available from the LDBF on request. and are summarised in Note 29. Where properties are held as custodlan trustee, the deeds are identlfied as such and held in safe custody. Related Partles Related partles Include: The Archblshops, Councll to which the LDBF pays a donatlon based on an apportionment system for funding national trainin8 of ordinands and the activities of the varlous natlonal boards and councils. The Church Commlssloners from which the LDBF recelves grants and whlch acts on behalf of cler8y With HM Revenue and Customs. The LDBF pays for clergy stlpends through the Church Commissioners. The Church of England Pen51on5 Board, to whlch the LDBF pays retirement benefrt contributions for stlpendlary cler8y and employees. It also offers schemes to provlde housing for clergy in retlrement. Parochlal Church Counclls are all Independent charltles and the company has no control over them. The accounts of PCCS and deaneries do not form part of these financial statement5. PCCS are able to Influence the decislon-makin8 Wlthln LDBF and at Dloce5an Synod level, through input of thelr Deanery Synods. Transactions wlth the maln categorles of related parties are Identlfled In approprlate place5 throughout the flnanclal statements. Where materlallty of the transactions merits more detailed disc105ure thls Is glven In note 28 to the flnancial statements. connect￿ charltles The Trustees consider the followlng to be connected charltie5.' The cathedrals are the mother churches of the Diocese and legally con5tltuted as separate charltles. Trustees, report and financial statements may be obtained from the.. Wakefield Cathedral Offlce, Wakefleld Cathedral, Northgate, Wakefield, WFI IHG. Rlpon Cathedral Office, Liberty Court House, Minster Road, Rlpon. North Yorkshire HG4 IQS. Bradford Cathedral Office, I Stott Hill, 8radford, West Yorkshire, BDI 4EH. The Leeds Board is sole trustee to the charitles and trusts 8lven below. The Leeds Diocesan Board of Finance does not benefit from these charities and they are not included in the annual accounts: Armley Deanery Schoo15 Charity- support of schools In the Armley Deanery Brewin's Ch2rity- 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 Riglon School House Fund- provision of special benefits and education in the school stewart's Charity- support to specified schools in Leed5 Romaldkirk & Coiiherstone Fund- upkeep of churche5 in Romaldkirk and Cotherstone Wray Beque5t- ecclesiastical purposes the parish of St Anne's Catterlck Rachel Dixon Charity- support of widows or unmarried daughters of the cler8y 18 LEEDS DIOCESAN BOARD OF FINANCE Other connected charities wlth whlch the Board co-operates In pursuit of its charitable obJectlves are: Bishop's Development Fund, Thorne5 Park Campus. Thornes Park, Wakefield, West Yorkshire. WF2 8QZ Icharity number 7005881 Bradford Diocesan Council for Social Aid, 17-19 York Place, Leeds. West Yorkshlre, LSI 2EX Icharlty number 2264361 Near NeSghbours, Church House, 27 Great Smith Street. London, SWIP 3AZ (Charity number 1142426. Company number 076033171 Wellsprlngs Together. Church House, 17-19 York Place, Leeds, West Yorkshlre, LSI 2EX (Charity Number 1179481. Company Number 114236411 The assets of the above charltles and trusts are held separately by themselves and are segre8ated from the assets of the Company. 19 LEEDS DIOCESAN BOARD OF FINANCE TRUSTEES, RESPONSIBILITIES The trustees (who are also directors of Leeds Diocesan Board of Finance for the purposes of companv lawl are responsible for preparlng the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunlted Klngdom Generally Accepted Accountin8 Practice). Company law requires the trustees to prepare financlal statements for each flnancial year which give a true and fair view of the state of affairs of the charitable compony and of the incoming resources nd appllcation of re50urce5. Including the Income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are ￿qUIred to- select suitable a¢countlng pollcies and then apply them consistently- obseNe the methods and principles in the Charities SORP IFRS 1021,. make Judgements and estimates that are reasonable and prudent- State whether appllcable accounting Standards have been followed, subject to any materlal departures disclosed and explalned In the flnanclal statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charlty wlll contlnue In business. The trustees are responslble for keeplng proper accounting records that disclose wlth reasonable accuracy at any tlme the flnanclal posltlon of the charitable company and enable them to ensure that the financlal statements comply wlth the Companles Act 20J6. They are also re5pon51ble for safeguarding the assets of the ¢harltable company and hence for taking reasonable steps for the preventlon and detectlon of fraud and other irregularitles. In so far as the twstees are aware: there Is no relevant audlt informatlon of whlch the charltable company's auditor Is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit informatlon and to establlsh that the audltor is aware of that Informatlon. The trustees are responslble for the malntenance and Integrlty of the corporate and financlal informatlon included on the charltable company's website. Leglslatlon in the United Kingdom governlng the reparatlon and dlssemlnatlon of financial statement5 may differfrom legislation in other jurisdictions. 20 IEEDS DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS Trustees No Trustee had any beneficial interest In the company during 2023. The followlng Trustees were in Post elther durlng the year andlor at the date of this report: Chairman- The Right Revd Nlcholas Balnes- Bishop of Leeds Ex-officio.. The Right Revd Anthony Robinson- Area Bishop of Wakefleld The Rl8ht Revd Helen-Ann Hartley- Area Bishop of Ripon Iresigned 3 February 20231 The Right Revd Anna Eltringham- Area Blshop of Ripon Ifrom 22 June 20231 The Right Revd Arun Arora- Blshop of Kirk5tall The Ri8ht Revd Toby Howorth- Area Bishop of Bradford The Right Revd Smltha Prasadam- Area Bishop of Huddersfleld Ifrom 22 June 20231 The Revd Rachel Flrth- Chalr of the House of Clergy of the Dlocesan Synod Mr Matthew Ambler- Chair of the House of Laity of the Diocesan Synod Elected by the Dean5: The Very Revd John Dobson'_ Dean of Ripon Cathedral Elected by the Archdeacons.. The Ven Paul Ayers Elected by: Synod House of Clergy.. The Revd Eve Ridgeway The Revd Gary Waddington (from 18 April 20231 Synod House of Lalty.. Mr Andrew Maude Mr Chrlstopher Thompson Mr Richard Pattinson (from 18 April 20231 Mr Roger Lazenby (from 18 April 20231 Nomlnated by ihe 8oard.' Canon Mr Itving Warnett Mrs Marllyn Banister Canon Mrs Jane Evans Mrs Jan Ali Senlor staff and advis¢rs Diocesan Secretary Chief Financlal Offlcer Director of Ministry and Mi55ion Director of Educatlon (Acting) Director of Strategy Implementation & Head of Property Director of People and Engagement Director of Church Revitalisatlon Director of Communication5 Heod of Safeguarding Jonathan Wood Geoff Park The Revd Canon Andrew Norman Slmone Bennett John Knox Anna Mltchell The Revd Jude Smith Chri5 Tate Sofia McGreavy 21 LEEDS DIOCESAN BOARD OF FINANCE Registered Office: Church House, 17-19 York Place. Leeds, LSI 2EX Prlncipal Bankers Santander, 44 Merrion Street, Leeds, LS2 8JQ Virgin Money plc, 94 Brlggate, Leed5 LSI 6NP 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 LLP, MStre House, North Park Road, Harrogate HGI 5RX Diocesan Re8lStrar David Whitaker, Lupton Fawcett LLP 2 The Embankment. Sovereign St, Leeds, LSI 48A Investment advisers CCLA Investment Management Ltd Senator House, 85 Queen Victoria St￿et, London, EC4V 4ET Glebe Agents Dacre Son & Hartley, Station Road, Otley, LS213DR Stephenson & Son, York Auction Centre, Murton, York, Y019 5GF Cartar Jonas, 9 8ond Street, Leeds LSI 2JZ Insurance Brokers PIB Insurance Brokers, Poppleton Grange, York, Y026 6GZ Prlnclpal Insurers EIG, Beaufort House, Brunswick Road, Gloucester, GLI IJZ In approvin8 thls Trustees, Report, the Trustees are a150 approvin8 the Strate8lc Report Included on pages 4- 13 wlthln thelr capacity as company directors. ON BEHALF OF THE TRUSTEES Blshop Toby Howarth Trustee 13 May 2024 Jonathan Wood Secretary 13 May 2024 22 LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Oplnlon We have audited the financlal statement5 of Leèds Diocesan Board of Finance For the year ended 31 December 2023 whlch cornprlse the statement of financial attivltles, balance sheet and the cash flow statement, and notes to the flnancial statements, in¢ludSng significant accountlng policles. The financial reportin8 framèwork that has been applled In their preparation Is applicable law and Unlted Klngdom Accountln8 Standard5, includin8 Financial Reporting Standard IQ2, the Flnancial Reportlng Standard applicable Sn the UK 3nd Republlc of Ireland Iunlted Kingdom Gènerally Accepted Actountlng Practice). In our oplnlon the financlal statements.. give a true and fair view of the charltable companl5 State of affalr5 a5 at 31 De￿rnber 2023 and of Its incomln8 resources and application of resources, Including its Income and expendlture,'for the year then ended,. have been properly prepared In accordance wlth Unlted Kin8dom Generally Accepted AccountinB Practlce,. and have been prepared In accordance wlth the Companles Art 2006. Basls for oplnlon Wè conducted our audit In accordance with International 5tandard5 on Audltlng IUKI IISAS IUKII and appllcable law. Our responslblllties under those standards are further descrlbed in the Auditor's re5ponslbllltles for the audlt of the flnanclal 5tatement5 5ectlon of our report. We are Independent of the charitable company In accordance wlth the ethlcal requlrements that are relevant to our oudlt of the financlal statements In the UK, In¢ludln8 the FRC'5 Ethlcal Standard, and we have fulfllled our other ethlcal responslbllltles In accordance wlth these requlrements. We believe that the atsdlt evldence we have obtalned Is 5ufflclent and approprlate to provlde a ba515 for our opinion. Condu51ons rel4tln8to ￿1n8 concern In auditing ihe financlal statement5, we have concluded that the trustees, use of the golng Concern ba515 of a¢counlln8 In the preparatlon of the financlal statement$1s appropriate. Based on the Work we have performed, we have not Identlfled any materlal uncertalntles relating to events or condStions that, indlvldually or collecllvely, may cast slgnlficant doubt on the charltable company's abillty to contlnue as a Boin8 ¢on¢ern for a period of at least twelve months from when the flnanclal Statements are authorSsed for issue. Our responslbllitles and the Tesponslbllltles of the trustees wlth respect to golng concern are descrlbed in the relevant sections of thls report. Other Informatlon The other Inforrnation comprlses the Information Included In the annual report, other than the flnanclal statements and our audltor's report thereon. Thetrustees are responslble for the other Inforrnation. Ouroplnlon on the financlal statement5 does not cover the other informatlon and, except to the extent otheiwise explicltty stated in our report, we do not expre55 any form of assurance conclusion thereon. Oui responslblllty Is to read the other Informatlon and, in doing 50, Consider whether the other information Is materially inconslstent wlth the financlal statement5 or our knowledge obtained In the course of the audit or otherwise appears to be materlally ml55tated. If we Identlfy such mater181 Inconsistencles or apparent material mlsstatemenls, we are required to determine whether thls glves rise to a materlal mi5Statement In the flnancial statements themselves. If, based on the work we have performed, we conclude that there is a materlal mi5Statement of thls other Information we are requlred to report that fact. We have nothing to report in this regard. 23 LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORTTO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Opinions on other matters pre5crlbed by the Companles Att 2006 In ou¥ oplnlon, based on the work undertaken in the course of the audit.. the Informatlon glven In the Trustees, Annual Report which Indude5 the Directors. Report and the strateglc Report for the flnanclal year for whlch the financial Statements are prepared is consistent with the financial statements,. and the Tru5tee5' Annual Report which includes the Dlrectors, Report ond the Strateg1¢ Report has been prepared in accordance wlth applicable legal requlrements. Matters on whith we are required to report by exception In the light of the knowledge and under51andin8 of the charftable company and Its envlronment obtalned In the course of the audlt. we have not IdentSfied materlal mlsstatements In the Trustees, Annual Report and Strateglc Report. We have nothln8 to report In respect of the followln8 rnatters where the Companles Act 21)J6 requlres us to report to you If, in our oplnlon.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches nol vlslteil by us,. or the flnanclal statements are not In agreement wlth the accountlng records and returns- or certaln di5c105ures of tru5tee5' rernuneratlon Specified by law are not made. or we have not recebved all the InformatSon and explanatlons we requlre for our avdlt. Responslbllltles of trustees As explalned more fully In the Truslee5' Responslbilltles Staternent set out on pa8e 20, the trustees (who are also dlre¢lors of the Charltable company for the purposes of company lawl are re5ponslble for the preparatlon of the fbnanclal statements and for belng satlsfled that theyglve a true and falr vlew, and forsuch Internal control a5 the tTUStees determlne Is necessary to enable the preparation of ffinanclal statements that are free from materlal mi55tatement, whether due to fraud or error. In preparln8 the flnanclal statements, the trustees are Te5ponslble for as5es51ng the charltable company's abSlltv to contlnue as a 8oln8 concern, dlsclosln8, as appllcable, matters related to golng concern and uslng the golng concern basls of atcounting unles5 the trustees elther Intend to liquidate the charitable company or to Cease operatlon5, or have no realistic alternative to do so. Audltor's msponslbllltles for the audlt of the fiftanclal Statements We have been appointed as audltors under the Companles Act 2006 and report In accordance wlth regulatlons made under that Act. Our oblectSves are to obtain reasonable assurance about whether the flnanclal Statements as a whole are free from materlal mi55tatement, whether due to fraud or error, and to15sue an audltor's report that Includès our opinion. Reasonable assurance is a high level of assurance, but Is not a 8uarantep that an au(Jit conducted In accordance wlth ISAS IUKI will always detect a materlal mlsstatemenl when It exlsts. Misstalernent5 can arise from fraud or error and are considered material If, individually or Sn the aggregate, they could reasonably be expected to Influence the eeonornic decisions of users taken on the ba51s of these flnanclal statements. Irregularlties, Including fraud, are Instances of non-compliance with law5 and re8ulatior15. We design procedures in Ilne wlth our responsibilities, outlined above, to detect material mi5Staternents in respect of irregularities, Including fraud. The specific procedures for this engagement and the extent to whlch these are capable of detectlng Irregularltles, Includlng fraud are detalled below. Identlfyin8 and assessln8 risks related to irregularities- We a55e55ed the 5usceptibillty of the charitable company's financlal statements to material misstatement and how fraud might occur, including through dlscusslons wlth the trustees. dlscusslons wlthln our audlt team planning meetin& updating our record of Internal tontrols and ensurin8 these controls operated as intended. We evaluated possible incenlive5 and opportunltles for fraudulent manlpulatlon of the flnanclal statements. We identlfled law5 and re8ulatlon5 that are of significance In the context of the charltable company by dlscusslons with trustee5 and updating our understanding of the sector in whlch the charltable tttmpany operates. 24 LEEDS DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LEEDS DIOCESAN BOARD OF FINANCE Laws and reBulatlons of direct $18nifitan£e in the context of the charitable company Include The Companies Art 2006, and guldance Issued by the Charity Commission for England and Wales and the Church of Engiand Measures. Audit response to risks identlfled.. We consldered the extent of compliar*ee with these law5 and rÈBulatlons as part of our audit procedures on the relaten Church Schools 750 200 950 22,141 158 2,188 75 24.562 38 LEEDS OIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOT the year Ènded 31 December 2023 9. OTHER RESOURCES EXPENDED Unre#rf¢fed funds 6ener•l Deslgnated £'ooo Resirkted Funds Endowment Funds Tot•1 Funds 2023 Loss on sale of properties Loss on transferol propertles 26 26 495 495 26 495 521 Unr•strldedlunds GeneMI D•s18n•ted £'ooo R•strkt•d Endowment Funds Funds É'o Tot•1 Fund5 2022 Loss on sale of propertles 32 37 32 37 10. ANALYSIS OF EXPENDITURE INCWDING ALLOCATION OF SUPPORT COSTS Adlvttlès Undertik•n Dlr•Ltty Gr•nt Fundkn8 of Actlvttl•J pport Costs Tot•1 2023 Ralsin8 funds 161 161 Contrlbutlons to Archblshops. Councll Resourclng par15h mln15try Edutatlon Retreat Centre Other 1,139 793 1,139 21,201 993 301 521 19,343 1,065 312 301 521 21.007 1,932 1,377 24,316 2022 Ralslnglunds Charftable actlvitle5- Contrlbutlons to Arthblshops, Councll Resourclng parlsh rnln15try Cler8y penslon deflclt valuation Education Retreat Centre Lay pensltsn defIC￿ValUatIon orher 71 1,076 1,608 1,076 21241 12251 950 295 19,568 12251 680 295 1,065 270 37 37 20,415 1.335 24,434 39 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS (contlnuedl For the year ended 31 December 2023 ii. AhlALYSIS OF SUPPORT COSTS UTrrestrlL*ed fvnd$ R•rtrfrted Endgwment Totsl funds 2023 Total lund5 2022 Gener•1 Desi8n•ttd £'ooo £Tho Funds Funds £'ooo Central admlnlstratlon Support for Sch¢xJl$ Governance.. External audlt Re8Sstrar and Chancellor Synodital cost5 729 312 729 312 270 32 32 28 261 261 243 43 43 1,377 1,377 1,335 2022 comparatlve5 are for the 8eneral fund only. 12. ANALYSIS OF GRANTS MADE No. Indl¥ldu•ls Insthutlo £'ooo Tesl8natedfunds Unllsted Investrnents 14 Is II•strict•dfvnds Unllsted Investments 13,147 50 815 14,012 Endowm•rtfur Investment property Unllsted Investments 4,552 16.064 13361 3,604 789 7.820 17,023 170 20,616 170 13361 4.393 24,843 Tof•l 36,224 220 13361 5,441 41,549 DEBTORS 2023 2022 £'ooo • wlthln on• y••r Loans to paT15he5 Other debtors ènd prepayments 144 775 12 977 919 989 L￿t after more th•n one y￿r Loans to parishes 39 39 39 39 Tot?1 debtors 958 1,028 LEEDS DIOCESAN BOARD OF FINANCE frJOTES TO THE FINANCIAL STATEMENTS (COn￿nUed] For the ￿ar ended 31 Decembèr 2023 19. CREDITORS,. amount fallln8 due wlthln one year 2023 £'ooo 2022 Loan repayment Instalments due In one year Church Commlssloners value-linked loans Church Commlssloners other loans Other taxe5 and social securlty Olher credltors and accruals Pènslon scheme liabilrtles.. Lay Denned Benefit Scheme Clergy Penslon Scheme 128 100 73 5,208 loo 82 4,398 Total credltors: 8mountslalllni due wlthln on• year 4.582 5,509 20. CREDtroRS: •mount f•llln8 due after more than one year 2023 rooo 2022 £'ooo Lo•n repaym•ni Instslments due after more than one y••r Church Commls51oners value-llnked loans Church Comm1551oners other loans Penslon s¢heme Ilabllltles.. Lay Defined Beneflt Scheme Cler8y Penslon Scheme 1,922 251 1,785 351 Totsl ¢redltors: amounts falllni du• after more than one year 2,173 2,136 The matvrlty of the above loans may be analysed as follows: Between one and two years Between two and flve years In flve years or more loo 151 1,922 loo 237 1,799 2,173 2,136 Church Commlssioners other loans conslst of permanent loans In collection whlch are mortgage loans for the purchase of clergy houses,. the amount falllng due after more than one year all relate5 to the General Fund. These loan5 are repayable over terms ran8lng from 5 to 25 years In quarterly In5talments, wlth the final loan repayable In 2028. The loans bear interest rates between 7.7% and 10.34%, which Is borne by the LDBF. In the event of sale, the loan would be Settled out of the proceeds and there would be no further charge to the LDBF. Valuè-linked loans IVLLSI are funds advanced to the LDBF for the purchase of propertle5 on an equity sharing ba515 and are repayable on the disposal of the related property. The loans are held at tslr value based on the latestvaluations of the Ilnked propertles, wlth valuation5 takin8 pla¢e every 5 years. The latestvaluatlon took place at 31 December 2023. 47 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2023 21. SUMMARY OF FUND MOVEMENTS X123 l January 2023 G•ln$•nd 31 Deomber 2023 Incom• £'ooo Ex￿ndItuTe Transfers É'ooo £'o¢Jo £'ooo UNRESTIIICTED FUNDS Generdl 50,221 20,214 121,7321 1,553 5.552 55,808 DESIGNATED FUND5 Archdea£oTrs Discretlonary Ingrow Fund M1551on Fund Carbon Reductlon Fund li 20 621 142 12 20 621 141 794 794 RESTRICTeD FUNDS Sectlon 554 Educatlon Cltr8y & Dependants hardshlp funds Bradford Summer Camps Local Educatlonal Funds Retreat House SUPPDrt funds Local Parochlal purposes Appeals & speclflc purposes Cler8y & lay 5tSpend augmtntotlon Church bulldln8 ￿paIr funds HouslnR repalr lund5 Pastoral Account Managin¥ Tru5tetslunds 1Th8lelleld lund5 Tralnlng for mln15tryfunds NCI Dloce5an Investment Pro8Tarnme Other NCI Fundlng Parlsh Ener8y Support Grnnts 6,503 114 207 35 11641 1331 13251 315 6,536 121 37 37 14 70 163 396 41 46 52 42 131 73 163 433 14 7.372 51 1.691 979 109 16 io 13 19 976 35 6,613 51 1,597 1261 (S￿> 309 49 327 801 581 1501 1501 95 81 12701 17751 15651 83 16.579 3,078 11,8511 18831 841 17,764 ENDOWMENT FUNDS P•m)•nent Stipends fund capltal Exp•nd•ble 13,349 11611 360 485 14,042 Genernl purposes & administratlon support funds Malntenance ol Mln15try Tralning for mlnlstry funds Clergy & dependants hardshlp funds Local Parochial purpose5 Glebe Land Church bulldlng repalr fvnds Housin8 repalr funds Glebe Propertle5 Benefice Propertles Local Educatlon Funds Rellglous Educatlon support Appeal fund5 & speclfic purposes 212 212 1,121 117 1,242 544 4.552 563 41 25 IQ9 106 1.268 142 1,424 578 7,820 580 99 18.525 101,897 108 171 43 218 52 99 15541 3,604 1651 16,040 92,634 98 156 43 353 18291 2,132 10.361 io 15 226 14951 130,671 779 17321 16701 16,861 146,909 198,265 24,071 124.3161 23,255 221.275 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ènded 310ecember 2023 21. SUMMARY OF FUND MOVEMEpirs Icontlnuedl 2022 Balances It l January 2022 £'ooo Balan￿$ at Galns and 31 Decemb41 Losses 2022 £'ooo Incom• ExpendStur• Transftrs £'ooa UNRESTrICTED FUNDS Genef•l 52.214 19,744 122,0081 13171 50.221 DESIGNATED FUNDS Archdeacons Dlscretlonary Ingrow Fund Mlsslon Fund Carbon Redurtlon Fund 13 20 621 300 li 20 621 142 11581 954 11581 794 RESTRicfED FUNDS Sectlon 554 Educ*lon Clergy & Dependants hardshlp funds Bradford Summer Camp5 Local Edueatlonal Funds Retreat House 5UPPOrt funds Local Parochlèl purposes Appeals & speclflc purposes Clergy & lay stlpend au8mentstlon Church bulldln8 repalr funds Pastoral Account ManaglngTrusteesfvfids In8lefleld fvnd5 Trainlng for m5nlstrylunds NCI Dloce5an Investment Programm• Parf5h En•rgy Support Grants 7,499 205 143 12CK)I 11171 12501 17511 6,503 114 37 31 13 65 142 401 9,093 51 1,784 896 83 37 37 14 70 163 396 6,613 51 1,597 891 83 21 13 233 32 12,0431 1501 16701 44 472 820 724 11661 11121 13351 18201 17151 1301 20,192 2,690 12,1881 12,3561 11,7591 16,579 ENOOWMENT FUNDS P•rmanent 5tlpends fund capltal Expendabl• General purposes & admlnlstratlon 5UPPOrt funds alntenance of Mlnistry Pensions TraininE for mlnlstryfund5 Cler8y & dependants hard5hlp funds Local Parochlol purposes Glebe Land Church buildlng repalr funds Glebe Propertle5 enefice Propertles Local Educatlon Fund5 ReliBlous Educatlon 5UPPOrt Appeal funds & 5￿cIfIC purposes 19,769 Isi 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 11171 194 12581 1321 1751 1431 143 5,812 1211 130,725 378 1801 1.768 12.1201 130,671 204,085 22.812 124.4341 4,1981 198.26S 49 LEEDS DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 Dècèmber 2023 22. SUMMARY OF ASSETS BY FUND 2023 Flxed a55ets Tanglble £'wo Curr•nt As$etJ £'ooo N•t In¥estm4nts £'ooo Credlto £'ooo Unrestrlrt¢dfunds-G•n•rnl 51.922 2,679 13,3531 SS.808 unle￿Ikted. d•$l¥nited Archdeacons Discretionary In8row Fund Mlsslon Fund Carbon Redurtlon Fund 15 14 19 621 140 19 621 140 15 781 794 R•strkMd Sectlon 554 Educatlon Clergy & Dependant5 hèrdshlp funds Bradlord Surnrner Camps Local Educatlonal Funds Retreat House support fund$ Local Parochlal purwses funds Appeals & speclflc purposes Clergy & lay stlpend èu8mentatlon Church bulldln£ répalr fund5 Houslng repalr fund5 Pastoral Account MJna8ln8 Trustees In8lefleld furtds Tralnln8lor mlnlstry funds NCI Dlocesan Investment Programme Other NCI Funds Par15h Energy Suppor( Grants Sthools LCVAP 8vlldlng Programme 222 6,Q)8 54 306 67 6,536 121 13 28 46 58 301 164 27 14 2,019 41 50 12281 73 164 433 14 7.373 406 5,3S4 1,344 783 347 196 109 15 io 3,170 1,691 979 109 15 io 13,1701 222 14,012 6,928 13,3981 17,764 End¢)wment Perm#n•Tht Stlpends fund capltsl Expendable Benefice hoyses Gener31 Purposes Malntenance of Mln15try Glebe Property TrainlTh8 for Mlnlstry Clergy & Dependants hardshlp funds Local Educatlonal Funds local Parochlal purposes funds Glebe Land Church bulldln8 repalr funds Housing fepair fund5 ReliBiOUS Education 5UPPOrtfund$ Appeal funds & other Specrfic purp05e5 13,448 594 l4,042 101,898 101,898 212 1.268 18.52S 143 1,422 108 578 7,820 581 99 170 43 212 1,266 18,525 143 1.029 393 390 7,820 393 74 170 25 43 120,423 24,843 1,645 121 146,909 Total funds 173,567 41,549 12.914 16,7551 221,275 50 LEED5 OIOCESAN BOARD OF FINANCE NQTE5 TO THE FINANCIAL STATEMENTS l¢ontlnuedl For thè year ended 31 December 2023 SUMMARY OF ASSETS BY FUND Icontlnuedl F5xed asset5 Tanglble Currerbt Assets Credltors £'ooo Net Irbve5trn•rrts £'ooo £'ooo Unrejtrlrted fvnds-Gener¥l 47,905 2,447 3,329 13,4601 50,221 Unrestrlcted- des1￿•t¢d Archdeacons D15cretionary n8row Fund M1551oD Fund Carbon Reductlon Fund 14 li 20 621 142 20 621 142 14 783 794 Restrlded 5ectlon 554 Edu£atlon Cler8y & Dependant5 hardshlp funds Bradford Summer Camps Local Educatlonal Fund5 Retreat House 5UPPOrt fvfids Local Parochlal purpose5 funds Appeals & speclflc purpose5 Clergy & lay stipend au¥mentètlon Church bulldin8 repalr funds Pastoral Account Managln8 Trustees In8lefleld funds Trolnlng lor mlnlstry funds NCI Dlocesan Investment Program Padsh Energy Support Grants schools LCVAP bulldlng Pro8ramme 228 5.693 49 582 65 6,503 114 12 25 37 14 327 163 25 873 51 348 l63 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 Endowm•nt Ptrman•nt stlpends fund c•pltal Expendgbl• 6eneflce houses General Purposes Maintenance ol Mlnlstry Glebe Property Pensions Tralnln8for Mlnlstry Cler8y & Depondsnts haTdshlp funds Local Educatlonal Fun(Js Local Parochial purpose5 funds Glebe Land Church bulldlng repalrfunds Rellglous Educatlon support funds Appe31 funds & other 5peclfle purpo5e5 12.963 386 13,349 92,634 92,634 212 1.121 16,040 212 J.120 16.040 117 117 1,242 98 544 4.552 563 156 43 353 98 356 4,552 363 156 41 108,674 20,616 1,381 130,671 Total funds 157,502 36,224 12,184 17.6451 198,265 51. LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL sfATEMENTS Icontlnuedl For the year ended 31 December 2023 23. DESCRIPTION OF FUNDS Fund category General fund Purpose The general fund Is the LDBF'S unrestritted undeslgnated fund available for any of the LDBF'S purposes without restrlctlon. Funds Included In thls catrfory Archdeacons Dlscretlonary Fund Represents grants re￿IVed set aslde to be used at the dlscretlon of Archdeacons. In8row Fund Funds from the bequest of Nora Curry left for the benefit of the parlsh of In8row. Mlsslon Fund Funds to suppoit future SDF projects and the ¢reatlon of a Par15h Growth Fund. Carbon. Reduction Fund Funds to enable adlustments to our bulldln8S that redu¢e thelr carbon footprlnt Sectlon 554 Establlshed under S86 of the Educatlon Act 1993. Capital monles to develop or bulld new or ex15tlng voluntary alded schools or malntaln such schools or ContrIb￿te to educallonal purposes. Clergy and Funds to provide rellef of clergy and thelr dependents hardshlp dependents in financlal hafdshlp. funds Clergy Stlpend Trust, cler￿ Wldow. and Dependent5, Queen Vlctorla Trust, Leed5 Dloce5e Charltable Soclety Trust, to Parlsh Clerbryi Widows, Clergy Retlrement, Education Grants, 85rstall Deanery Fund Bradford Summer Camps Bursary Funds to provlde support to chlldren & youths to enable them to attend summer ¢amp5 In cases of financlal hardship. For Èducatlonal purposes In the areas named Local educatlonal funds Shlpley cum Heaton Dlstrlct CofE School Trust, Kel8hley St Peter Educatlonal Trust Retreat House support Support towards the Dlocesan Retreat funds House Frlends of Parcevall Hall, Par¢evall Hall Bursary Local Parochial purposes funds For general parochlal purposes in the area North Wlng Mlsslon, Guiselev named. Carleton. Samarltans Fund, KeS8hlei All Salnts McNish Appea15 and speclal purposes funds Funds comprise donatlons received for speclflc appeals and purposes. In¢ludln8 work In Link5 Dioceses. Interfalth fund, Youth Evangellsm, Special Appeals, Northern Sudan, Kadugll Appeal, Church in the Worli TM Wright Sudan relief, St Martin li the Field, Duker Ideaf mlnlstryl NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 310e¢ember 2023 52 LEEDS DIOCESAN BOARD OF FINANCE 23. DESCRIPTION OF FUNDS l¢ontlnuedl Fund category Purpose Funds in¢luded In thls ¢ategory Church bulldlng repair For repairs to churches of the EvangÈllcal funds tradStSon In the Church of England within the Dlocese. or funds to support the provlslon of loans to a551st malor works to be carried out on church bubldlngs. The Flrst Lord Grimethorpe Charity, Church buSldln8 fund, Harrogate Churches, Church Bulldlng Repalr, Da￿ bequest. Loan fund, Klddle Bequest NCI Dlocesan Investment Programme Funds major change prolects, which lead to slgnlfitant dlfference In dI0￿$e5, m1551on and financial stren8th. an'd the Increase In curate number5 Other fvndln8 Tecelved from the NatSonal Church outslde the Dlocesan Investment Programme. other NCI Funds Clergy & lay stlpend augmentatlon Fund5 for the au8mentstlon of clergy and lay stlpends Pastoral Account Thbs fvnd include5 the proceeds of bulldin8s closed lor regular publlc worshlp, parsonages and land sales. The purpose for whlch thls account rnay be used are lald down In Sectlon 94 of the Pastoral Measure 2011. Created from sale of Dlocesan Retreat louse at Barrowby. and a55et5 transferred from the Booker Bequest. Income used to ald Dloce5an Synod, conferences and theologlcal courses. In8lefleld Tralnln8 for mln15try In¢ome used towards cost of tralnln8 ordlnand5. Resourcln8 Mlnlsterlal Educatlon IRMEI General purposes and Funds from bequests to be used to support admlnlstratlon adminlstration and general purpose5 Malntenance of rnlnistrv Funds from bequests to be used to support stSpends In speclhc parlshe5 PensSons Funds from bequests to be used Sn supportln8 clergy penslons. Slipends Fund Capital The Incorne of the fund CAn only be used for clergy stipend5 Ibvt Since 1993 capltal can be used for Improvements to parsonage houses) and is governed by the Diocesan Stipends Measure 1953. 53 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnued) For the year ended 31 December 2023 23. DESCRIPTION OF FUNDS Icontlnuedl Fund Cate￿ry Purpose Fund5 Included In thls category Glebe Land This fund is governed by the Endowments and Glebe Measuie 1976- It represents the value of agricultural or Commercial land In the Dlocese. prSmarSly held to generate sustalnable income to support clergy stlpends. Benefice Propertles Thls reprèsents the value of all beneflce houslng Iparsona8esl in the Dlocese after deductln8 any loans due on the propertles. Fund5 for support of reli8lous educatlon Income used to support schools work, and to meet the Schools fund, Rellglous offlce and travel cost5 of rell8lous educatlon aifvisers. educatlon advlsor expenses support Houslng Repalr Funds reserved for the repalr and malntenante of speclfic propertles Dove Trust, Whltklrk Deanery Curates Housln8 Fvnd 24. CAPtTAL COMMITMEifrs At 31 December 2023 the LDBF had capltal expendlture commltment5 of £nll 12022 £274kl whlch are contracted for but not provlded for In these flnanclal statements. 25. OPERATING LEASES Total amounts payable under nonvcancellable operatlng leases are as follows.. 2023 2022 £'ooo Land and buSldln85 Wlthln one year of the balance sheet date In the 5etond to fifth year of the balance sheet dale After the fifth year of the balance Sheet date 24 95 22 24 95 46 141 26. po￿ BALANCE SHEET EVENTS AND CONTINGENT LIABlltfiES There were no post balance sheet events or ¢ontin8ent liabilities at the Balance Sheet date. 27. PENSIONS During 2023 the LDBF particlpated in two penslon schemes admSnSsterèd by the Church of England Pen51on5 Board. whlch holds the assets of the schemes separately from those of the LDBF and the other participatlng employers. One of thesels the Church of England Funded Penslon Scheme for stipendiary clergy. The other is the Churth Workèrs Pension Fund. The Church Worker5 Pension Fund has a 5edion known as the Defined Benefits Scherne, a deferred annulty sectlon known as Penslon Buil(ier Classic and a cash balance 5ectlon known as Pen51on Bullder 2014. 54 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS l¢ontlnuedl For the year ended 31 December 2023 27. PENSIONS Icontinuedl Churth of England Funded Pension Sthème With effect fiom l January 1998, diocesan clèr8y became members of the Church of England Funded Pensions Scheme. This deflned benefit scheme provides benefits based on the National Mlnlmum Stipend in the year before their date of retlrement and provides for that part of the beneflt that relates to penslonable service after l January 1998. Benefits are currently belng accrued on the basi5 of half of the National Minlmum Stlpend INMSI bein8 paid as the normal pension on rea¢hlng the age of 68 on completlon of maxlmurn seivlce of 41.5 years, or 1.25 tlme5 this amount for archdeacons, plLSS a lump sum of three times the pension b35ed on the prevlous year's NMS payable from the scheme. Pension5 In respect of pènslonable servite before l January 1998 wlll be provided for by the Church Commls51oners under the prevlous arran8ernents. Dac•mb•r 2023 310 Dec•mb•r 2022 329 Number ofmernbers Leeds DBF partlclpates In the Church of EnBland Funded Penslons Scheme for stlpendiary cler8y, a defined benefit scheme. fhls scherne i5admlnlstered by the Church of En8land Penslons 8oard, which holds the assets of the schemes separately from those of the Responslble Bodies.Each partlclpatlnB Respon51ble Body In the Scheme pays contrlbutlons at a common contrlbutlon rale applied to pen51onable stlpends. The scheme Is consldered to be a multl*mployer scheme as descrlbed In Sectlon 28 of FRS 102. Thls means It Is not posslble to attrlbute the Scheme's assets and Ilabblltles to each specSflc Responslble Body, and thls means contrlbutlons are accounted for as If the Scheme were a defined contrlbutlon scheme. The pensions costs char8ed to the SOFA In the year are contributlons payable towards benefits and expenses accrued In Ih8t year, plu5 any Impact of deflclt contrlbutlons are shown In Note 1315ee also below). A valuatlon of the Scheme Is carrled out once every three years. The most recent Scheme valuatlon completed was carried out at as 31 December 2021. The 2021 valuatlon revealed a surplus of £560m, based on assets of £2,720m and a fundlng target of £2,160m, a5ses5ed uslng the followln8 assumptions.. An average dls¢ount rate of 2.7% p.a., RPI Inflatlon of 3.6% p.a. land penslon Increase5 cons15tent wlth thlsl; CPIH inflatlon In Ilne wlth RPI le55 0.8% pre 2030 movln8 to RPI wlth no adlustment from 2030,. Increase In pensionable stlpends In line with CPIH-, and Mortallty In accordance wlth 90% of the S3NA tables, wlth allowance for Improvements In mortallty rates in Ilne with the CM12020 extended model wilh a longterm annual rate of Improvement of 1.5%, a smoothlng parameter of 7, an Inltlal addltion to mtsrtallty Improvement5 of 0.5% pa and an allowance for 2020 data of O%11.e. w2020- 0%). Followlng flna115ation of the 31 December 2021 valuation, deflclt contrlbutlon5 ceased wlth effect from I January 2023. slnce the Scheme was In surplus. The deflclt recovery contrlbutlons under the recovery plan In force at each 31 December were a5 follow5: % of penslonable stipends Jonuary 2021 to December 2022 7.1% January 2023 to D•c•mber 2023 Deficit repalr contrlbutions An Interim reduction to defl¢lt contrlbutions to 3.2% of pensionable stipends was made wlth effect from April 2022, and remained in place until December 2022. For senlor offlce holders, pensionable stlpends are adlusted in the calculations by a rnultiplÈ, as set out in the SchèmÈ's rules. 55 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 December 2023 27. PENSIONS Icontlnuedl Section 28.IIA of FRS 102 requires agreèd deficit recovery payments to be recognlsed as 3 Ilablllty. However, as there are no aBrèed dÈtlcit recovery payments from l January 2023 onwards, the balance sheet liablllty as at 31 December 2023 is nil. The movement In the balance sheet Ilablllty over 2022 and over 202315 Set out In the table below. 2023 2022 560,000 1335,0001 Balance sheet Ilablllty at l January Deflclt contrlbution pald Interest Cost Ireco8nised in SOFA) Remalnlng change to the balance sheet Ilablllty. Ireco8nlsed In SOFAI Balance sheet Ilabillty at 31 December 1225,IMJI • Comprlses chan8e In a8reed defkf( recovery plan and change in d15coiint rate and 8$sumptlon beNveen yearvends. The prevlous Ilabllity represented the Present value of the deficll contrlbutlons a8reed as at the accountln8 date and wa5 valued u55n8 the following assumptlons. No assumptlons are needed for December 2022 or 2023 a5 there are no agreed deflclt recovery payments 8oln8 forward. No price Inflation assumption was needed for December 2021 SIn￿ penslonable stlpend5 for the remalnder of the recovery plan were alreadv known. Dec 2023 n/a nla De¢ 2022 nla nla nla Doc 2021 0.0% pa nla -1.5% pa Dlscounl rate Prlce Inflatlon Increase io total penslonable payroll The legal structure of the scheme Is such that If Responslble Body falls, Ihe Dlocese of Leeds could become responslble for payln8 a share of that Responsible Body'5 penslon Ilabllltles. Church Workers P•nslon Fund- Deflned Benefits S¢h•m• Until 31 De￿mber 2018 the Leeds DBF partlclpated In the Defined Benefits Scheme 5ectlon of CWPF for lay staff of the former three dioceses. The Scheme is admlnlstered by the Church of England Pensions Board, whlch holds the assets of the schemes separately from those of the Employer and the other partlclpatlng employers. The Church Workers Penslon Fund has a 5ettion known a5 the Deflned 8eneflts Scheme, a deferred annultv sectlon known as Pension Builder Classic and a cash balance sectSon known as Pension Builder 2014. Deflned Benefits Scheme The Defined Benefits Scheme I"DBS'I section of the Church Workers Pènslon Fund provides benefits for lav staff based on flnal pensionable 531ories. For fundln8 purposes, the DBS is divided into sub-pools in respect of each partlclpatlng employèr as well as further sub-pool, known as the Life Risk Pool. The Llfe Rlsk Pool exists to share certain risks between employers, InclvdlnB those relating to mortality and post-retirement investment return5. The dlvlslon of the DBS into sub-pools Is notional and Is for the purpose of calculatlng ongolng contrlbutlons. They do not alter the fartthat the assets of the DBS are held as a slngle trust fund outof which all the benefits are to be provided. From tlme to time, a notional premium is transferred from employers, sub.pools to the Life Rlsk Pool and all pensions and death benefits are paid from the Life Rlsk Pool. 56 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl For the year ended 31 DÈcember 2023 27. PENSIONS Icontinu*dl The scheme is considered Is a multlomployer scheme as descrlbed In Sectlon 28 of FRS 102. It Is not posslble to attribute the scheme's a55ets and liabllities to specific ernployer5, slnce each employer, through the Ufe Rlsk Pool, 15 exposed to actuarial ri5k5 assoclated with the current and former employees of other entltle5 particlpatin8 in the DBS. Thls means that contributlons are accounted for as If the Scheme were a defined contrlbutlon scheme. The pensions Costs charged to the SOFA In the year are contributlons payable towards beneflts and expenses accrued In that year, plus any Impact of deficlt contrlbutlons are shown In Note 13 (see also below). If, followln8 an actuarlal valuatlon of the Llfe Rlsk Pool, there Is a surplus or dèflclt In the pool, further transfers may be made from the Llfe Risk Pool to the employers. sub-pools, or vlce versa. The amounts to be transferred land their allocatlon between the sub-pou151 wlll be settled by the Church of England Penslons Board on the advlce of the Artuarv. A valuatlon of DBS Is carfled out once every three years. The most recently flna115ed was Carrled out as at 31 De¢ember 2019. In th15 valuatlon, the Life R15k Sectlon was shown to be In deficlt by £7.7m and £7.7m wa5 noilonally transferred from the employers, sub-poo15 to the Llfe Rlsk Section. Thls Increased the Employer contrlbutlons that would otherw15e be payable. The overall deflclt In DBS was £11.3m. The next actuarlal valuètlon15 currently takln8 place as at 31 December 2022. The calculatlons for th15 are under way. Followlng the 2019 valuatlon, the Leeds DBF entered Into an a8reement wlth the Church Workers Penslon Fund for the DBS Schemes as follows.. Leeds DBF18radfordl DBS Followlng the valuatlon, the Dloce5e of Leeds has entered into an agreement wlth the Church Worker5 Penslon Fund to pay expenses of £5,600 pa. Leed5 DBF (Alpon & Leeds) DBS FDllowln8 the valuation, the Diocese of Leeds has entered Into an è8reement wlth the Church Workers Penslon Fund to pay expenses of £9,5c￿ pa. In additlon, deflclt payrnent5 of £167,766 per year were agreed for 1.25 years from l Aprll 2021 in respert of the shortfall In the Dlocese of Leeds sub-pool, whlch has now been cleared. Leeds DBF (Rlpon & Leeds Educatlon Team) DBS Following the valuatlon, the Dlocese of Leeds has entered Into an agreement with the Church Workers Pen51tsn Fund to pay expenses of £2,OW pa. Leeds DBF Iwakefieldl DBS Followlng the valuatlon, the Dlocese of Leeds has entered Into an a8reement wlth the Church Workers PeD5i9n Fund to pay expenses of £12,500 pa. In addltbon, deflclt payrnents 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 £12,000 remalned outstanding at 31 December 2022 the scheme valuation had improved such that deficit payment5 ceased at that polnt. The remaining liablllty wa5 therefore written off in 2022. Any future obligations would be Teco8niseil as a1Sabllity within the flnanclal statements. 57 LEEOS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANaAL STATEMENTS Icontlnuedl For the year ended 31 December 2023 27. PENSIONS l¢ontinuedl Section 28.IIA of FRS 102 requlres agreed defidt recovery payments to be recogni5ed as a Ilablllty. The movement In the provlslon Is set out below.. 2023 2022 Balance sheet IlabS11ty at l January 169,0 Deflclt Contrlbutlon pald Interest cost Irecognised In SOFA) Remalning chan8e to balance sheet liablllty'lrecognlsed Sn SOFAI 1158,0001 I,ooo 112,OCQI Balance sheet Ilablllty at 31 December Compr15es change In agreed deficlt iecovery plan and change In dlscount rate between year.ends. The prevlous Ilablllty Tepresents the present value of the deflcit tontrlbutlons agreed as at the a¢countlnB date and was valued using the followin8 assumptions, set by reference to the duratlon of the deflclt recovery payments: Dls¢ount rat• December 2023 Decemb•r 2022 D•cember 2021 Leeds DBF IBradfordl DBS Leeds DBF IBradlord & Rlpon Education Team) DBS Leeds DBF Iwakefleldl DBS Leeds D8F (Rlpon & Leeds) DBS nla nla o.iJJ% nla nla nla nla o.w% 1.30% o.co% nla Penslon 8ulld•r Sch•m• The Penslon Bullder Scheme of the Church Workers Pen51on Fund Is made up of two sectlons, Penslon Bullder Classlc and Penslon Bullder 2014, both of whlch are classed as deflned beneflt schemes. Penslon Builder Classlc provlde5 a penslon for mernber5 for payment from retlrement, accurnulated from contrbbutions paid and converted into a deferred annulty durlng employment based on terms set and revlewed by the Church of England Penslons Board from Ilme lo tlme. Bonuses may also be declared, dependin8 upon the Investmet)t returns and other factors. Penslon BuSlder 2014 Is a cash balance scheme that provldes a lump sum that members use to provlde beneflts at retirement. Pension contrlbutlons are recorded In an account for each member. This account mav have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The accounti plu5 any bonuses declared, Is payable from members, Normal Penslon Age. There Is no sub-dlvision of assets between employers in each 5ectlon of the Pension Builder Scheme. The scheme is considered to be a multl-employer scheme as described In Sertion 28 of FRS 102. This Is because It Is not posslble to attribute the Pensiorh Bullder Scheme's assets and liabllities to spe¢lflc employers and that coritrlbutlons are accounted for as If the Scheme were a deflned contrlbution scheme. The pensions Costs tharged to the SOFA In the year are contributions payable Isee Note 13 and above). A valuatlon of the srhpme is carried out On￿ every three yeais. The m05t recent valuatlon was carrie¢J out a5 at 31 December 2022. Calculations for this are currently under way. 58 LEEDS DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS I￿ntInued) For the par ended 31 December 2023 27. PENSIONS I￿ntInued) For the Pension Bullder Classic 5ectlon, the 2019 valuation revealed a deflcit of £4.8m on the ongolng assumptions used. At the most recent at)nual revlew effèctive l January 2024, the Board chose to grant a discretionary bonus of 6.7% to both penslons not yet In payment and pensions In payment in respect of service prlor to April 1997.. and a bonus on penslons in payment in respect of post Aprll 2006 service so that the penslon Increase was 5% Iwhere usually it would be calculated based on Inflatlon vp to 2.5%). ThSs followed Improvements In the fundlng position over 2023. There Is no requirement for defl¢ll payments at the current tlrrie. For the Penslon Buildèr 2014 section, the valuation revealed a surplu5 of £5.5m on the on8olng assumptlons used. There Is no requlrement for deficit payments at the ¢urrent tlme. The legal structure of the scheme Is such that If another employer fails, the Leed5 OBF could become liable for paylng a share of that employerfs pensSon113bllltles, Frorn I january 2019 untll 30 November 2022 all lay staff employed by the LDBF are enrolled In the Penslon Bullder Classlc scheme. On l De￿mber 2022 the a new Defined Contribution pension scheme Ithe Flexlble Retirement Plan from TPT Retlrement Solutlonsl was Introduced for all new starters and exSstlng employees were able to transfer across. Contrlbution rate5 are the same as for the Penslon Bullder Classl¢ Scheme- 8.0% of pen51onable salary unmatched, plus up to a further 5.0% matched to employee contrSbullons, 28. RELATED PARTY TRANSACTION5 The Board enters Into transactlons, on a re8ular basls, wlth other autonomous or8anlsatlons wlthln the Church of England - e.8. Parlshes, the Cathedra15, the Central Board of Flnance, the Archblshops Councll of the Church of England and the Church Commls51oners. From time to time Dlrector5 and key managers of the Board rnay serve on commlttees of other bodles, or the General Synod. It Is not considered approprlate to report the detall of such transactlons slnce no person or group of people so servlng have any s18n1n￿nt Influences over any material transactlon5. There are no unusual transactions wlth such bodies reflected In these flnan¢lal statements. 29. FUNDS HELD AS CUSTODIA14 TRUSTEE The LDBF acts as Dlocesan Authorlty or ¢ustodlan trustee for many trust funds by vlrtue of the Parochlal Church Counclls (power51 Measure 1956 and the Incumbent5 and Churchwardens (Trusts) Measure 1964 where the managlng trustee5 are parochlal church counclls and others. Assets held in ihis way are not ag8reBated Sn these financ1al statements as the LDBF does not control them. The flnanclal assets held In thls way may be 5umrnarisèd as follows.. 2023 2022 £000 CBF Church of England Investment Fund Income Shares C8F Church of England Investment Fund accumulation shares CBF Church of En8land UK E4Ulty shares CBF Church of Global Equlty shares CBF Church of England Fixed Interèst Securltles Fund shares CBF Church of England Property Fund shares other common investment fund holdin85 Direct holdlngs in UK equltles CBF Church of England Deposit Fund 11,794 38 82 575 299 348 559 375 1,861 12,511 36 81 581 362 425 670 360 1,781 Total a55ets held as custodian trustee 15.931 16,807 59