2022-12-31-accounts

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) CESE OF ICHESTER OW. LOVE. FOLLOW JESUS Annual Report and Financial Statements For the year ended 31 December 2022 Company No: 00133558 Registered Charity Number: 243134 A printed copy is available on request from Church House, 211 New Church Road, Hove BN3 4ED Or email [e-mail]

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 TABLE OF CONTENTS Page Number Mission Statement Legal Objects Strategic Report: Strategic Aims Objectives for the year Activities and Achievements in the year Future plans Financial review Principal risks and uncertainties 19 20 24 Structure and Governance 25 Trustees, Responsibilities 31 Administrative details 33 Independent Auditorfs Report 35 Statement of Financial Activities 39 Income and Expenditure Account Balance Sheet 41 Cash Flow Statement 42 Notes to the Financial Statements 43-82 Page I

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Mission Statement Our rnission is growth in Christ: encouraging people in the Diocese of Chichester and the wider world to know, love, follow Jesus and to grow as his disciples in worship and witness to the truth of the gospel. Page 2

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 The Trustees. who are also Directors for the purposes of company law. present their annual report, together with the audited financial statements. for the year ended 31 December 2022. The directors/trustees are one and the same and in signing as trustees they are also signing the strategic report sections in their capacity as dirertors. This combined ￿port satisfies the legal requirements for: Direilor5' Report of a charitable companv,. a Strategic Report under the Companie5 Act 2006.. and a Trustees, Annual Report under the CharIt￿S Act 2011. LEGAL OBJECTS The object5 of the Diocese of Chichester cover the counties of East and West Sussex and the Unitary Authority of Brighton and Hove. The principal object of the Chichester Diocesan Fund and Board of Finance Ilncorporatedl I"CDBF"I is to promote, carry on, assist, benefit and advance the work of the Church of England in the Diocese of Chichester by acting as the financial executive of the Chichester Diocesan Synod. The CDBF has the following statutory responsibilities:_ the management of glebe property and investments to generate income to support the cost of stipends arising from the Church Property Measure 2018.. the repair of benefice houses a5 the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972; the management of investments and the custodian of assets relating to church 5choo15 under the Diocesan Board of Education Measure 2021- the custodian of permanent endowment and real property assets relating to tru5t5 held by Incumbents and Churchwardens and by Parochial Church Councils as Diocesan Authoritv under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils IPowersl Measure 1956. iv. The strategic priorities of the company are established by the Diocesan Synod on the advice of the Bishop's Council and the Bishop of Chichester lin respect of his responsibility for ihe provision of the cure of souls) and his Senior Staff. Significant time and effort is committed to communication between and with deaneries and PCCS. as well as with the church nationally, including an annual series of deanery consultations on the Di0￿$an Budget and the priorities for the forthcoming year. In reviewing the charity's aims, and putting them into action. the trustees have taken account of the Charity Commission's guidance on public benefit. Page 3

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 STRATEGIC REPORT STRATEGIC AIMS The main role of the CD8F is to identify and manage the financial aspects of the provision of ministry throughout the Diocese, so as to provide appropriate personnel and financial resources to support both the nurturing of faith in new and existing Anglicans in Sussex and engagement with the ommunity. as part of the Church's response to the mission of God in Sussex. The CDBF aims to achieve this by equipping the Diocesan Synod, its Councils and Committees. deaneries, parishes, chaplaincies and schools to further the mission and strategic priorities of the Diocese and by doing only those things which are best done at diocesan level or otherwise add value to the work of parishes. chaplaincies and schools. At Pentecost in May 201S. the Diocesan Synod launched a five year Diocesan Strategy with the following three priofities modelled on the priorities of the Archbishops, Council's Renewa1 and Reform body ofwork.. Growth in holiness and numbers,. Re-imagining ministry: Contributing to the Common Good. At the end of 2019 the second stage of the Diocesan Vision for Growth wa5 launched. which built on the previous airns, but identified four priorities for 2020-2025.. l. More Open= a sign of beingone.. 2. More Converted to Jesus Christ: a sign of being ho￿. 3. More Generous: a sign of being catholic,. 4. More Engaged: a sign of being apostolic. These aims focus on similar themes identified by the national Church of England in their Strategic V15ion for growth. OBJECTIVES FOR THE YEAR The CDBF seeks to respond to its mi55ion of growth in Christ and to its strategic aim5 by focusing on the following objettives for this and subsequent years- To resource a Christian presence in every parish bv.. o The appointment of stipendiary and 5elf-supporting clergy, lay ministers and Christian leaders and govemors in our schools o Enabling the laty in congregations to play their part in ministry o The payment of stipends and pensions o The provision and maintenance of housing which is safe, fit for purpose, and welcoming o The selection and training of ordinands and lay ministers. and the provision of Inancial support to those training for ministry o Providing ministerial development ￿vIewS and continuing ministerial development for clergy Page 4

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Providing pastoral care and welfare support to clergy. including financial assistance where needed Planning and delivering improvements to mi55ion and pastoral organi5ation To develop the ability to ensure a Christian presen￿ in future by: Encouraging vocations to both lay and ordained ministry, especiallyyoung vocations, and developing apostolic pathway5 for all. in particular re-imagined forrns of lay ministry Supporting apostolic partnerships to reinvFgorate communities and establish a presence in areas of new housing Enabling church schools to reach out to familie5 in their communities To support clergy. lay leaders. parishes and chaplains and enable their work by providing training, infom)ation, advice, guidance. services and good govemance To support schools and in particular head teachers and governors to provide the best possible education and Christian witness through training and support services and the provision of assistance and advice To support schools by ensuring their buildings are fit for purpose, facilitating capital expenditure and the expansion of schools where wssible To provide support for parishes and individuals in all aspects of safeguarding tasework. liaisng with the public authorities as necessary To promote a care for the environment and a sustainable use of resources. and work towards becoming an Eco Diocese To support the Anglican church, nationally and internationally, and other particular ministries to groups and communities To run an effective organisation in order to deliver these objectives. including the provision of support to the senior clergy and management of assets. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Re50urcinB a Christian presen¢e Appointment5 of clergy and laity The presence of clergy and lay ministers in the parishes and communities of the Diocese is an important part of delivering the Diocese's mission. They engage in a wide variety of commuriity and church projects and despite the continuing impact of the Covid-19 pandemic, in 2021 (the latest Year for which figures are available) approximately 940 weddings or blessings, 3,230 funerals and 1,610 baptisms were carried out. During the pandemic and beyond they have also engaged in manv new projects to support their communities to combat issues ranging from hunger to loneliness. adapted to different worship patterns. notably online worship, and deepened existing work. 357 licensed clergy and 78 licensed readers rninister across the 349 parishes and Bishop's Mission Orders in the Diocese, with 25 new stipendTrary and 4 new house for duty or self-supporting clergy appointments in 2022. including 13 newly ordained deacons. and 6 new reader5 licensed. Page 5

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 The Education Department appointed 149 foundation Eovernor5 for church schools and helped to appoint 6 new head teachers. Payment of stipends ¢7nd pen5ion5 During the year the CD8F paid stipends. pensions and other employment tosts totalling E9.2 million for incumbents. curate5 and other clergy, increasing stipend5 above national recommendations. The payroll is administered by a separate charity, the Church Commissioners for England, and the CDBF reirllburses the c05t5, which form by far its largest financial commitment. The average rate of vacancies wa5 25 against a budgeted rate of 26, five lower than in 2021, with an unusually low level of 17.5 at the start of the year rising as the year went on. Rural deans and churchwardens of vacant parishes work closely together to maintain worship and other comrnunity activities, aided by a large pool of retired and 5elf-5UPPOrting ministers. The CDBF funds fees and expenses for those clergy during vacancies. Parish clergy are not employed by the CDBF. but the CDBF does have responsibilities in respect of their engagement. In addition to paying their stipends and National Insurance, paying into their pension funds, and housing them. it 15 responsible for training (see below). Under new terms of service, called Common Tenure, introduced in 2011. clergy have greater clarity on their rights and obligations and have access to Employment Tribunals and other useful services. These apply to all new appointment5 and Some of those in post before February 2011,. others chose to retain their freehold. 35 clergy remain on freehold tenure. The CDBF'S external HR consultants and ernployment lawyers provide HR services and advice in respect of clergy as well as lay staff to improve the care and service provided and supplement in-house work. Provision of housing The annual quinquennial repair programme for 2022 was deferred because of the Covid pandemic. and 15 due to resume in 2023. Again, a significant amount of work was undertaken in respect of appointments and lettings in 2022, with 60 properties being made ready for incoming clergy and private tenants (to derive a rent). Major project5 in 2022 included the planning and tendering exercise for the extension at Moulsecoomb Vicarage. and the refurbishment of Middleton Vicarage. Selection ond troining of ordinands ond lay ministers The training of curates IIME 21 includes the development and running of a diocesan course, which Is a Common Awards programme validated through the University of Durham via St. Augustine's College of Theology lour local training instituts'onl. Curates are formally assessed at the end of their training to ensure they have reached an appropriate level of competency, a process overseen by the Department for Apostolic Life. Curates are given sUPPOrt and guidance in the proces5 of applying for posts of first responsibility. Grants of over £315k were made to ordinand5 t0 5UPPQrt them and their families during their training. There are currently 33 ordinands in training. Page 6

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Ministerial Development Review IMDRJ and Continuing Ministeriol Development (CMDJ MDR reviews were mostly able to be held in person again in 2022, except for distance or illness. In response to feedback. several chaplains were involved in a working group to èdapt rhe MDR paperwork for use by chaplains. This was trialled by two chaplain5 in autumn 2022 and will be kept under review. A wide range of courses in theology, spirituality. wellbeing and practical skills were delivered- many via Zoom. The First Incumbents course Ithree-year cyclel continued, with a mix of Zoom and in person sessions. The first cohort completed the final year of the course, after which a review took place. The third cohort of clergy undertook the Galilee leadership programme. Postoral care ond welfore support The Wellbeing for Clergy and Families IWCFI service now has 15 professionally registered counsellors. offering both in-person and online appointments (normally 12 fully funded appointments). Counselling feedback has been consistently p051tive. There has been increased rigour in policy and documentation whilst giving the WCF counsellors more ègency, and work on GDPR compliance. Training has been planned and delive￿ collaboratively with other staff in the department, particularly with the Diocesan Director of Ordinands and Continuing Ministerial Development Off icer. More face-to-face opportunities to meet with clergy have been 50ught, e.g. at deanery chapters and in l-l meetings. The first Clergy Wellbeing Day took place at Ashburnham Place in September. with 70 clergy attending. Tickets were 'Pay What You Can. which was well-recerved and facilitated a variety of donations, enabling clergy to make an investment in their own wellbeir)g. whilst also lessening costs to the CMD budget. The feedback from 30+ persons indicated a hugely positive response regarding speakers. content, delivery, and location, and confirmed the appetite for another Clergy Wellbeing Day in 2023. In addition. welfare grants totallinE approximately £211k have been awarded to 375 clergy and their families in times of need. This includes the grants towards energy costs made from the Clergy Hardship Fund which was made available from the Church Commissioners in 2022. Implementing improvements to postort71 orgonisation Eight Mission and Pastoral schemes and orders {five Pastoral Reorganisation schemes and three Bishop's Pastoral orders) were completed and a further twelve case5 were progressed. Significant progre55 was a150 made in relation to finding new uses for several closed churches. Page 7

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Developlng Christian presence for the future Encouraging vort7tion5 Training ADDOS IAssistant Diocesan Direttors of Ordinands) who accompany those exploring a vocation to ordained ministry continue5 to be importsnt, and we are grateful that they offer their time as volunteers. In November 2022 we h05ted an ADDO residential at Ashburnham over two days. All ADDOS experienced a simulated Stage I panel (part of the new national discernment and selection process) run by the DDO. The DDO gathered the new lay Bishop< Advisers for the National Discernment Process together to support them in their new roles. In June 2022 13 Deacons were ordained. We'released, 9 ordinands to seek a post in a different diocese. 26 ordinands continued in trainin& including candidates from underrepresented groups. In September 2022. we sent an additional 6 ordinands to train and one resumed training, making a total of 33 ordinands at the end of the year. We continue to prepare candidates for Candidates, Panels, which 15 an extension of the selection process and reviews a range of candidates, cases: transferring to a new category of ministry, moving to a new focu5 of ministry. resuming training after withdrawal. receiving ministers from other Churches. those who have completed training but not yet been ordained. and those with conditional recommendations. There are currently 12 candidates working formally through the new discernment proce55, some of whom will start training in September 2023. More candidates are in the initial stages of discernment. A part time150%1 Deputy DDO was appointed in December 2022 to increase capacity and have a particular focus on those going through selertion and initial training on the exteptional pathway. which has been developed largely for older candidates who are called out by the bishop to meet Ioc31 need. Supporting opostolic partnerships A diocesan policy was written and agreed by Bishop's Staff and 8ishop's Council and presented at Diocesan Synod in May. Thi5 will continue to be refined- in particular the proce55e5 for developing a proposal for an apostolic partnership as these are trialled. As a diocese we were successful with a further application for £1.62 million of Strategic Development Funding for Crawley. The application will enable St John's to continue to expand its mission across the town and see even more lives in Crawley spiritually and materially transformed. The vision of thi5 5-year project is to create a vibrant eco-system of churches, with young leaders, who live and share the Gospel of Jesus Christ to reach a generation that feels forgotten in a town where the Covid pandernic has amplified the needs of the city- especially unemployment, debt. Page 8

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 hunger, homelessness, and mental ill health. The funding focuses on 3 key areas; il Leadership development pipeline I'character School - Developing leaders in the way of Jesus"l- ill Launch 4 new worshiping cornmunitie5. Partnerships at St Richard's (Three Brid8esl and St Peterfs (West Greenl and new plants at Kilnwood Vale and Forge Wood (new housing developments): iiil Accelerate ypscaling of St John's as a resource church for bcal parishes in Crawley land eventually beyond). The 2021 project continues in the Brighton ènd Hove deaneries with 2 church apostolic partnerships launched during the past 12 months and preparations underway for 2 more church partnerships scheduled to be launched early in 2023. The diocese is also beginning to have conversations with Vision and Strategy team at National Church Institutions regarding a new major package of funding to be launched across the UK in 2023 called Strategic Ministry and Mission Investment. 2021 saw St John's Mead5 partner with St Michael and All Angels. Eastbourne. and this has seen the congregation grow significantly IISO regular worshippers) over 2022. As a diocese, we partnered with Winchester & Guildford dioceses to run the church planting course with 2 churches from each diocese. The plan is to repeat this over the next 12 months. Enabling church schools to reoch out Within the current SIAMS (Statutory Inspection of Anglican and Methodist Schools) schedule, schools are encouraged to demonstrate -courageous advocacf and reach out to their local cornmunitie5 through engagement in both Social action and charitable activities. Our School Effectiveness Team worked alongside Sch￿15 to determine what this looks like in a local context. Our Growing Partnerships initiative is in full operation. The essence of this IS to look at ways schools and worshipping communities can come together within the Household of Faith and work in partnership within our local cornmunities. Feedback has been positive from all stakeholder5. short video is available on our website. Our School Effectiveness Officers also promoted it through their visits and regular conversations and it is the subject of ongoing training and discussion. We have been delighted to see the wide range of partnerships that have developed and the way each local relationship is unique. The ideas and concepts supporting Growing Partnerships have been shared with other dioceses who are adopting a range of elements within it. The Education team a150 worked c105ely in 2022 with other partners in the Diocese including the Cathedral to develop our input into 81ack History Month and Race Awareness Week. 2022 saw the return of our Year 6 Leavers Celebrations. We were joined by over 3,6CKI children from 121 schools but what was particulady striking was the vast increase in the friends and familie5 that joined us. Page 9

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Supporting clergyi lay leaders* parishes arKI chaplains Pori5h development In 2022, we were involved in driving the deanery planning process across the diocese, which sought to identify mi55ional needs and outcornes for every deanery in the diocese. Thi5 involved working I to I with every deanery and rural dean. We launched a church growth course, named Great is thy Faithfulness- Growing the Household of Faith, whith was piloted for 16 parishe5 across 6 sessions during early 2022. The feedback helped us to make changes and it will be run in 2023 with 8 parishes over 6 months. The full effett of the programme will only be seen in time as churthes implement their growth strategies. Lay Vocation5 2022 marked 5 years since the start of the Living Faith course. In that time 250 people have undertaken the course many of whom have subsequently trained as either ALMS, Readers or clergy. During the pandemic. the course switched to become online only. and it is our hope that in 2023 we will be able to provide both in person and online versions of the course. However, the online version of the course has been well received enabling a rich mix of participants from across the diocese. In 2022 we appointed a new tearn of A5SiStant Wardens for Lay Ministry and a new Ministerial Developrnent Review scheme for Readers has been completed and will be rolled out in 2023. Continuing ministerial development for Readers and ALMS is now being provided through the Developing Ministries programme organised by the CMD Officer (see above). This means that there are now regular CMD events some of which are designed specifically for Reader5 and ALMS and others are shared with clergy. A quarterly newsletter'Lay Ministry Matter5. has been developed, and training and other events together with resource5 etc are now being advertised through this. The newsletter is sent to all licensed and serving Reader5 and ALMS. Youth ond Children 2022 saw Maycamp gathering in person again for the first time since 2019, with around 350 young people attending and 25 new Chri5tian5. We focussed on 'building back after Covid.. starting with re-5trengthening the network of relationships between youth and children's leaders. Regular Link up networking events, Maycamp. rnini Maycamp, youth and children's leaders retreat and regional hubs have all been important touch points throughout the year. We are starting to see the hubs operating as a node of communication to previously disconnected churches as well as a valuable space for training. networking. resourcing and fellowship with other like-minded volunteers. We continue to recruit new leader5 for more regional hubs working towards a conveniently local regional hub in every geographical area. Page 10

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 In late spring. a children's and famiSies work conference was run at the cathedral wFth keynote speakers representing the national Growing Faith initiative as well as creative and emerging thinking around children's and families work. 110 people attended this conference. The Diocesan Mission Fund continues to fund mission with children and young people through the recruitment of new youth and children's workers in parishes. Not only does this support parishes in funding but also in the strategic development of these roles using mission fund advocates to work closely with parishes in the application pro￿55 and through ongoing annual reporting. Communicotions Despite a five month gap in digital resourcing following the departure of the Digital Media Officer and recruitment of a successor, video output wa5 increased. The team planned and delivered over 30 videos for a range of activities including 11 videos welcoming our new ordinands, five vide05 highlighting the E3syFundraising scheme. five videos for Remembrance SLJnday. and videos promoting Black History Month. Holy Lar)d Pilgrimage and Bishop Martin's ioih anniversary. as well as developing the Diocesan Sound cloud podcast5 platfomi which, this year, hosted reflections from the Larn￿th conference and Advent reflection5. Added to this the department supported and shared training and workshop promotions for a variety of Apostolic Life programmes. The team supported the Ukraine housing initiative led by Bishop Ruth, communicating the need for church communities to step up and offer refuge to those fleeing Ukraine and sharing stories from host families. The team also supported the appeal for Warm spaces projects which resulted in several churches responding to this initiative. The department responded to Her late Majesty s death and i55ued guidelines to churches and responded to local media and parish enquiries at short notice. The comrnunication5 team 5UPPOrted a full year of key diocesan event5. both the major Christian festivals and special events such as Racial Justice Sunday. 81ack History month and Order of St Richard honouring exceptional lay servtce. On top of this, the team participated in the delivery of social media training for Clergy in ollaboration with the Apostolic Life department as well as assisting with increasing registrations to events such as The Childhood Conference and the Clergy Wellbeing Day. Raising the profile of our partner charities continued with coverage of key Motherfs Union, Family Support Work and Children's Society events and new partnerships were explored, including working with the RSPCA. Three diocesan stories were shared by the National team including The Chapel on the Beach. Other national events such asGreat Big Green Week and The Queen's Green Canopy were 5UPPOrted by reporting on the engagement and activities in church communities. Two is5ue5 of Faith in Su55ex were planned and published Isumrner and Winter). All our communications channels were regularly populated with a mix of diocesan and external campaigns, Page 11

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 mostly planned throughout the year. The fortnightly e-news, social media channels and website continue to connect the whole of the diocese. Regular communications to a range of stakeholders took place throughout the year on various topics. from Ad clerums to Specific targeted Diocesan communications for events and activities, governance and compliance. etc. Educt7tion A key aspect of our work focussed on Growing Partnerships as detailed earlier. Training opportunities and briefings were provided for Headteachers. Foundation Governors and clergy. This remains an area where close partnership work with the Apostolic knfe Team is proving valuable. Since 2021 we have been holding termly briefings online with Heads alld Governors. This serves to keep our schoo15 informed and to keep growing the threads of a Diocesan School Family. Three sessions were offered in 2022 and in total 415 school leaders attended including Headteachers, Chairs of Governors and clergy. These briefings gave an opportunity for the Education Team to give information about the future focus of the department as well a5 Sharing the wider context of education issues. Our Governor Training programme proved very popular with 353 pla￿5 being booked on a total of 18 training sessions. The areas Covered included SIAMS, Safeguarding and Foundation Governor induction. Sofeguording As in previous year5, the Safeguording Team provided support to parishes on a daily basis, with advice offered both by email and telephone on safe8uarding practice, implernentation of policy, nd risk management as well as casework, in addition to the advice which is maintained on the safeguarding website. Training was provided to over 4CQ people during the year. in addition to the online safeguarding training which continues to be accessed by well over I,LMNJ people across the Diocese every year. In addition. the team continued to manage the DBS process for clergy, ordinands and readers in training, parish safeguarding officers and lead recruiters and others, and to support new lead recruiters to register to apply for DBS checks. Property The Property Department continues to support parishes and clergy by providing advice on the management and development of property. The department also provide5 guidance to parishe5 regarding the Charities Act and the process to obtain diocesan consent for property sales. Church Buildings and DAC The Diocesan Advi50ry Committee for the Care of Churche5 has continued to fulfil it5 Statutory role in the faculty juri5dirtion System, providing advice and guidance to the Chancellor, Archdeacons and parishes on issues relating to the care of church buildings. Page 12

THE CHICHESTER OIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 310ecember 2022 The DAC issued written advice in relation to 131 applications194 requests for formal advice and 37 requests for informal advice). The Church Buildings tearn and DAC also assisted the Archdeacons in processing 196 permissions for minor works under the List B process. 23 DAC site visits were carried out. The Fundraising Adviser provided tailored fundraising and project management advice to 84 parishes by email, phone. and in person. The figures break down by archdeaconry as Chichester- 34, Hastings- 24, Brighton and Lewes- 17, and Horsham- 9. She visited 24 thurehes. independently of the DAC'S scheduled slte visits. As in 2021, grant-funding opportunities and remits continued to change rapidly and frequently and keeping on top of this comprised a significant part of her work. It also increasingly includes advice on major project planning and heating needs. Parish Support onfinonciol matters The Department for Apostolic Life provides ongoing support to parishes through it5 training semin3rs and manuals, and by providing ad hoc advice throughout the year. Topics covered included the role of the PCC treasurer. contartles5/digital giving. good governance. will-writing and legacies, and annual report writing. All Seminars were conducted on Zoom and at different times of day, which gave parish officers from across the diocese the chance to attend and participate. The department continued to Share manuals and accounting template5 on the diocesan web51te, updating webpages as needed and to improve clarity. We responded to question5 from incumbents, treasurers. PCC secretaries and churchwardens on a daily basis. A particular emphasis in 2022 was the development of contactless and digital technology to facilitate individual donation5 via bank card. We acknowledge with thanks a grant from the Archbishops, Council to support contactless giving pilots. The Parish Giving Scheme continued to improve its offering and the methods of engagement. Bv the end of the year 225 parishes had joined the siheme, with over 64,000 donations processed over the year for the Diocese, to a value of £5.6 million includinE Gift Aid. Innovations for givers included the ability to register online to begin giving and to amend existing giving. The information booklet5 that Ap05tolic Life rnake availab5e to parishe5 were updated and added to the Diocesan webpage5, as well as being sent out in hard copy to parishes as needed. Generou5 Giving We have sought to support churches as they aim to create the right conditions for generosity- through appropriate mechanisms, explaining the impact of and need for generosity and to help build trust between the church members and their leadership. With the right condition5 in place, the focu5 then moves to creating a church culture where generosity is seen as.what we do as church- To facilitate this, we have provided training on inspirational preaching and teaching, equipping leaders for discipling church members, looking to embed generosity into a church's DNA and creating suitable actions and activities to facilitate a generous response. It has been important to set or re-set expectations that generosity is not a one-off event- a stewardship Sunday or a tick in Page 13

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 the box on a Mission Artion Plan - but rather an ongoing journey of generous giwng which is part of the fabric of church life. In order to promote thi5. we continue to have individual meetings Wlth church incumbents and leadership teams, seeking assistance from the appropriate Rural Dean. and member5 of the Senior Staff. We have also continued presenting to PCCS, clergy deanery chapters and deanery synods. The opportunity to preach on giving has also been taken when invited to do so by the individual incumbent and proves to be a significant factor in the raising of awarenes5 of generosity. Significant use has been made of resources available online. including those created by the Church of England National Giving Team, Giving in Grace. and Ecclesiastical Insurance. In 2021 and into 2022, the diocese established a formal agreement with easyfundraising- mechanism to 'capture" donations made by participating cornpanies when people Shop for goods and services on-line. The take up by individual churches has been encouraging as there is no cost to the illdividual purcha5er- the donation coming out of the marketing funds of the supplier. As part of thi5 programme, a range of supporting resources. including video testimonials of 5ucces5ful churches have been created. We expert these to Significantly increase the take-up of the programme and the individual revenue thus created. Finance The Diocese acts as Custodian trustee for maF)y trust fund5- the Finance Department admini5ter5 investments on behalf of almost 5¢J] parish and thancel trusts and 65 school trust5. Governance The Governance team continued to advise parishes on matters of governance, record-keeping, GDPR and the like and as in 2021 there was a particular focus on the impact of the pandemic, the holding of meetings and alternative methods of decision-making. 16 Autumn Deanery meetings were held in 2022. This year these were mainly joint meetings between either 2 or 3 deaneries and mainly in person. Two further Zoom meetings and two further in-person meetings were offered to anyone across the diocese who had been unable to attend but wished to ask question5. These meeting5 once again offered a chance to reflect on and celebrate the work of all those in our deaneries and parishes, and to share and discuss key financial information. Three diocesan synods were held in person with hybrid options for those who could attend in person in February, May and November. Supportlng schools All our schools have benefitted from the support of a named Diocesan Effectiveness Officer with the experience to 5UPPOrt school improvement and effectiveness. The programme of Continuing Professional Development offered by the department is designed to support school leaders, governors and clergy through a wide variety of topics that are relevant to school life. Courses offered around the SIAMS schedule proved popular wtth governors and Page 14

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 headteachers alike, with additional bespoke sessions beine arranged for groups of schools. The numbers engaging across our range of training opportunities have grown tonsiderably over the past twelve months with 1.146 training places taken in the academK year. The training programme offered for our Headteachers, school leaders arKI teachers saw 378 place5 booked on 20 different courses. In addition, 80 school beader5 registered for our Headteachers, Conference on the theme of Growing Partnerships. Academisation remains an important part of the strategy of the department. A suctessful Academies Roadshow in November was very well attended and we are confident thi5 has supported our School Leaders in developing their thinking. The amount of ongoing dialogue with our Trusts is very encouraging. Our Academy Trusts are growing and it is important that we ensure that their growth is sustainable as we seek to support as wide a range of schools as possible. We now have four diocesan Multi-Academy Trusts in operation- the Bishop Luffa Learning Partnership, the Bishop Otter Academy Trust, the DI0￿Se of Chichester Academy Trust aF)d Hurst Education Trust. The Oiocesan Board of Education have developed a new boo￿ with the CEOS of our MATS. This is known as the Strategic Partnership of Diocesan MATS and has been created to develop a coherent approach that will begin to amount to a DI0￿Se of Chichester offer. to support the challenging decisions that our schools will need to make in the coming years. Bythe end of 2022. 91% ofour schools werejudged to be graded good or above by Ofsted. This compares with the national average of 88%. Facilitating of capital expendlture on schoo15 The Education Department continued to support the remaining 47 Voluntary Aided schools via capital funding from the government, under the Scheme known a5 the School Condition Allocation. launched in 2020. which give5 the diocese greater independence and greater flexibility to use the resource effectively, coupled with greater accountability. Projects at 26 schools were funded in 2021-22. Safeguarding casework Safeguarding casework remained busy in 2022 but at a lower level of intensity than in previous years. Chichester's Second Past Cases Review IPCR21 was completed in 2022 and actepted by the national PCR2 Project Board. The report commended the quality of safeguarding casework acros5 the Diocese, although making various recommendations including that the Diocese continues to monitor the resourcing of the SafeEuardinE Team to ensure that good quality casework remains achievable. The Diocese has already responded to this recommendation by providing increased staffing leve15 for the Team. The environment The Environment Group chaired by the Arthdeacon of Brighton and Lewes continued work towards a Climate plan of action in response to the Church of England's target of Net Zero Carbon by 2030, presenting a route map to Diocesan Synod in May and engagin8 Wlth the resources made available by the Church of England. Page IS

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 57% of churches submitted data to the national Enerbry Footprint in 2021 Ithe latest year for which data is available), an increase of Il%. with the estimated net carbon footprint reducing from 4,600 tonnes of CO2 in 2020 to 4.100. The number of churches joining Eco Church has also continued to grow. Two pilot project5 looking at increasing the energy efFiciency of different types of parsonage house were initiated, and Heat Decarbonisation Plans have been produced for 74%% of our Voluntary Aided Church Schools. One Voluntary Aided school. which had a completed Heat Decarbonisation Plan, sutcessfully applied for £670,OC(l of public funding from the Department for Energy Security and Net Zero. The DBF is contributing £92,¢XXJ match funding along with some contingency funds from the School Condition Allocation capital funding. The project will replace two old oil boilers with a ground source heat pump. distribution pipework, radiators, windows. roofin& draught proofing and insulation. The bid was undertaken by the school with support from the diocese, the diocesan HDP and the diocesan consultant5. Supportin8 the wider chur¢h and sprfific ministries Supportfvrporish projects within diocese The Diocesan Mission Fund deployed part of the grant from the Benefad Trust as well a5 an amount from the Pastoral Fund to support outreach mission initiatives Wlthin the Diocese. It supports l)oth new work and developments of current activitie5 that need further financial assistance. In the last year the Mission Fund has awarded £90,IJ)O towards projerts including an Interpari5h Children and Families Mission Initiator & Youth Worker. a children's worker and Rick's Bench, an innovative listening project tackling lonelire55 and mental health issues. All projetts are linked closely to the Diocesan Strategy. Grants are made to other connected charities, notably Chichester Diocesan Association for Family Support Work to 5UPPOrt their work with disadvantaged families. An anatysis of grants made by the CDBF to support the furtherance of its objects can be found in note 11 to the financial statements. Supportfor the wider church notionally Contributions are made to the Archbishop< Council to cover a proportion of its central costs relating to the activities of various national board5 and councils including General Synod, and also to cover a proportion of the cost of national training for ministry and the provision of housing for retired clergy Isee note 9 to the financial statements). Supportfor the wider church internotionally The DOC has continued to focus principally on supporting Christians training for ministry. Three students from Kericho, Baringo and Maralal Dioceses in the Church of Kenya are studying at Carllle College, Nairobi, either full-time or part-time, for two or three years. In addition, Adam Tomalin. who is originally from Hailsham. and his wife Nomfundo work for Crosslinks and are studying at George Whitfield College. Muizenburg, South Africa. Adam introduces himself in a YouTube clip on the 'Overseas Mission and Companion Links, page of the Diocesan website. PaEe 16

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 The Lambeth Conference finally took place in ear￿ August- a hlsge logistical exercise masterminded by the team at Lambeth. Unfortunately. it was not possible to hold the customary week in the Diocese and Parishes beforehand. However. Bishop Martin was able to invite nine of our eleven link bi5hop5 and their spou5es- all apart from The Gambia and Kericho, Kenya to Chichester on 2nd August. Supporters and members of the DOC joined them for tea and a short tour of the Palace, followed a service in the Cathedral at which Bishop Martin presented our visitors with chasubles. The bishops, wives vRre also presented with gifts and met with MU representatives. At the supper afterwards. arrangements were made to provide the bishops With mitres. Regarding the difficult discu55i0n5 Wlthin the Anglican Communion. our link dioce5e5- the Church of the Province of West Africa and the Anglican Church of Kenya - are not members of the Global South Fellowship of Anglican Churches IGSFAI. At the end of 2022 the DOC discussed the repercussions for the Oiocesan Mothers Union and their relationship with South Sudan becoming more complicated. The par)dernic meant that the Feuerstein Conference (held in Bayreuth. Germany) was postponed until May 2022. The theme of the COnfe￿nCe was focu55ed on mission and Chichester sent a smèll cohort of two curates and one first incumbent. The Diocesan European Ecumenical Committee IDEECI wa5 disbanded in 2022 due to its limited scope and ineffective structure. Supportjor particularministries The CDBF continued to provide the Gatwick Airport Chaplain. who continued to offer a Christian presence and ministry to individuals and airport companies in Gatwick. In 2023, this will be taken over by the Diocese of Southwark. Diocesan clergy also continued to support the South East Coast Ambulance chaplaincy. The Rural o￿l￿r for East Sussex has continued to offer support, encouragement, care and athice to the many rural churches and communities we have in East Sussex. Highlights in 2022 included Rural Resource Events for laity and clergy. such as 'Usin8 Your Churchyard For Mission, and How Village Churches Thrive, Events such as these, as well as addressing Dearbery Synods and Chapters, have enabled the Rural Officer to share good practice and to create greater confidence in our shared mi55ion and ministry. while the emerging Chaplaincy at Plumpton Agricultural College and his appointment to the Board for the South of England Show have enabled the Rural Officer to be a 'conduit' between the Church and other rural stakeholders. The Bishop's LG8TI ￿alsOn Officer. a pioneering role created in 2017 to ensure that those who identify as LGBTI (both within and outside the Churchl are affirmed and welcomed rather than simply tolerated, has continued to seek to build bridges of trust and relationships across divisions. to raise awareness, to provide for one to one and shared conversation5 Wlth clergy and others, and to bring experience to bear on scripture. reason and tradition. Coming to a place of "good disagreemenf is not always easy. The current debate about same sex marriage is perhaps one of the most difficult issues the Church of England is facing in the 21st Page 17

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 century. This year concludes six years of theological reflection through the 'Living in Love and Faith. project which was debated in depth at General Synod in February 2023. Throughout 2022 the Liaison Officer was involved in offering confidential support of those who are LGBTI and feel hurt by the Church, together with providing a sounding board for clergy across the theological spectrum dealing with these sensitive issues. One of the most fruitful experiences has been meeting with those who disagree and yet seeking some common ground in our God-given humanity, recognising with dignity, the Christ in the other, and then parting on good terms, having formed a degree of trust that will continue to undergird relationships together into the future. Racial Justice work developed during 2022. There was a special service at Uckfield Church on the 13th February, Racial Justice Sunday. This service was the first of its kind within the diocese. Following the service, work took place towards forming a Racial Justice Committee for the diocese and two Diocesan Raciol Justice Officers were appointed by Bishop Martin at the Black History Month Service at Chichester Cathedral on the 8th October. They have been raising awareness about racism and its effects at schools and churches within the diocese. By the end of 2022, a Racial Justice Strategy and a Racial Justice Committee which works towards implementing the strategy were in pla￿. Runnin8 an effectlve or8anlsatlon 19 8overnin8 committee meetings were held. including the Bishop's Council. the Operatin8 Committee, Assets Committee, Audit Cornmittee, Education Finance Committee and Remuneration Committee. Elections to the Diocesan Board of Education were completed, following the reconstitution of the Board in accordance with the Diocesan Boards of Education Measure 2021. The Diocese makes great efforts to be a good steward of its a55ets, and to rnanage it5 investments effectively. balancing the need to maximise the long term return from our assets with the need to generate income to reduce the pressure on parishes. Great care continues to be taken with this management, with an ever increasing focus on ethical and environmental consideration. With regard to glebe land, planning applications in the Horsham and North Chichester area have been afferted by water neutrality i55ue5. At Wisborough Green, Pulborough West, and Rotherfield Glebes, planning refusals were issued although it seems likely that the developers will submit fresh applications. Plumpton Glebe received a positive planning decision in 2022 and we are in the proce55 of determining the price notice. The Property Oepartment continues to focus on letting empty houses where it can. In 2022 rental income of c. £710k was generated from vacant parsonage houses and c. £390k from glebe houses and land. In May 2021, in response to the ongoing Covid-19 pandemic and to reflert the Success of working from home, the DBF introduced a remote working policy which is now embedded into the organi5ation. This hybrid model enable5 Staff to work between the office and frorn home whi15t meeting the needs of the organisation. Our IT systems have facilitated effettive busines5 continuity throughout the pandemic and the new softphone telephone system13CXI rolled out in 2021 has bedded in and both improved our flexibility and saved costs. We continue to work with our IT Page 18

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 partner, Trident, to monitor and support our IT systems and are working towards betoming serverless in 2023-4 with data stored securely on the doud. FUTURE PLANS The strategic aims established by Diocesan Synod in 2019 detailed on page 4 wll continue to direct the activities of the CDBF. The Diocese will be working with the Church of England's Vision and Stiate8y team to further develop strategic plans and seek Strategic Mi55ion and Ministry Investment. Re50urcing a Christian Presence Pressures on finance ènd mission will continue to be addressed by the diocesan wide deanery planning exercise to consult on, and made decision5 about, the mission and ministry needs of the diocese, the resources that can be found to fund them, and the best way to deploy ministers in light of those needs and resources while closing the funding gap. This was rolled out to all deaneries in 2021 ènd encouraging responses receNed. with follow ups during 2022. A diocesan wide view will be developed during 2023. The diocese's major commitment continues to be the maintenance of a Christian presence across the parishes of Sussex. We will continue to encourage more vocations to the ordained ministry through events. rnentorin& visibility of role models. and increasing team capacity, and we also plan to train and develop lay members of the Church. including expansion of the number of Authorised Lay Ministry electives. in response to needs identified in deanery and parish MAPS. In response to the ongoing pre55ure5 placed on clergy following the Covid-19 pandemic, clergv welfare will remain a priority. Another Clergy Wellbeing Day (to which 311 clergy in the diocese will be invited) is being planned, pursuing the direction set out by the General Synod in their 2022 Covenant for Clergy Wellbeing. Further workshops are being developed in collaboration between the Head of Wellbeing for Clergy and Families and the Continuing Ministerial Development officer, which will incorporate both theological and psychological perspectives. Further models of reflective practice for clergy are being proactively considered with a view to long-term development and financial sustainability. Building on the strategic aim5, we will be haNllng three further themed years wf(h events and opportunities for laity and clergy to deepen their knowledge and understanding of the faith and their Christian discipleship. Advent 2022 to the beginning of Advent 2023 is the Year of the Old Testament. Generous Giving In 2023 we aim to continue with our support and guidan￿ for parishes wishing to take on new contactless giving methods. including a "try befo￿ you bu￿ projert and customisable postcards including QR codes to online giving mechanisms. Supporting treasurers has never been more important, with pressure on volunteers including bank charges and branch closures. we will again offer detailed treasurer training seminars and continue to offer day to day help as needed. A key focus for 2023 will be to enable churches to make more of the easy fundraising facility- to encourage those yet to sign up to do so. and for those already registered to increase the Page 19

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 contributions received. To do this. a proactive campaign is in progress. encoura8ing churches to look wider than the participation of core church membership, extending thi5 to include friend5 and family of the membership and also local businesses, who, although they may not be attending thurch personally. value its presence within the local community. Education The Education team plan to produce an initiative similar to Growing Partnerships to support clergy working with non-church schools. Year 6 Leavers Services will also be developed further, with an increase in the number of services to 14 in order to meet demand. A further key focus will be developing and implementing a strategy to achieve Carbon Net Zero in the diocese, and in particular assisting schools to meet the target, and ensuring that our parishes and schools are safe and welcoming places ￿MaInS a priority. A temporary additional FJOSt, funded by a Brant from the Archbishops. Council, ¥￿11 help to deliver this. Safe8uardln8 The Diocese of Chichester is now a Pathfinder Diocese for the national implementation of Recommendation5 1 & 8 from the Independent Inquiry into Child Sexual Abuse IIICSAI. Recommendation I relates to the increased autonomy of Diocesan Safeguarding Advisers (to be fe- named Officer5 to reflert their ability to act on their own authority in certain key casework tasks). Recommendation 8 relates to the ongoing auditing and quality assurance of safeguarding work in Dioceses and Cathedral5. This is an ongoing project that will exist until 2024 when Recommendations l and 8 will be implemented across every Diocese. Being a Pathfinder Diocese places Chichester at the forefront of one of the most significant change projects across the CofE regarding safeguarding. In addition to its 5tatU5 as a Pathfinder, the Chichester Diocesan Safeguarding Adviser 15 the Lead User amongst DSAs for the national projert. Our central structures are designed to support the vision and the priorities of the diocese and. as such, are kept under ￿VIeW to ensure that they are fit for that purpose. FINANCIAL REVIEW Flnanclal Performance The main incoming resource for the Diocese is Parish Share. the money given by the parishes to the Diocese to fund its mission and ministry and in particular the costs of clergy stipends. pen5ion5 and housing. This provides 69.3% of the CDBF'S income12021- 72.9%). The current yeals Parish Share receipts represent 98.8%12021: 98.5%) of the total pledges made for 2022. When the receipts for prior years are included the collection rate increases to 99.2% {2021- 98.8%). The Trustees are grateful to all parishe5 who pledged so generously and continued to meet those pledges de5Plte the c05t of living crisis. especially to those parishes that make their contribution payments by monthly instalments which enables the Diocese to manage cash flow efficiently. Page 20

THE CHICHE5fER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 The total income for the year was £19.7m12021: £17.9ml. The thanges to income in 2022 are due to the following fattors: Parish share pledges over £0.5m more than 2021, and with a higher rate of payment, although the impart of the pandemic continued to mean that parishes had not been able to pledge as much as they had for 2020 prior to the start of the crisis. During the year the Diocese received grants of £791k from the Strategic Development Fund and one off grants from the Archbishops, Council of £106k for Clergy Hardship and £357k for Energy Costs for parishes in recognition of the Substantial increase in energy prices as a result of the war in Ukraine. The total expenditure for the year was £19.Im12021- £17.9ml. Significant changes included.. An increase in housing costs of £1.2m reflerting catch-up cost5 following the recommentement of quinquennial inspection remedial work. An increase of £253k in Strategic Development project costs which was more than offset by increased Strategic Development grant income. An increase of £102k in supporting church school5. Overall, net income of £608k was posted before investment gains. Realised losse5 of £463k were ljooked on investments and unrealised losses of £4.Im were reported on the investment portfolio and gain5 of £ll.Om on the property portfolio. As a result. fund5 increased by £7.Im to £320.8m. A deficit budget has again been set for 2023. Parish Share is budgeted to build on the increases reported in 2022 with the aim of not impacting the ability to provide ministry where needed across the Diocese. Significant Property Transactions Six properties lone parsonage and five glebe houses) were sold during the year for a total of £3.8m. Four glebe properties were purchased during the year for £2.4m. The CDBF will consider the disposal of property for the following reasons: to replace unsuitable parsonages- to accommodate the changing geographical deployment of clergy within the Diocese; to realise developmer)t potential in some propertFes. thereby using our resources more effectively for the ministry of the Church. Balance sheet The Trustees consider that the balance sheet together with note 20, Show broadly that the restricted and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While net assets at balance sheet date totalled £320.8m 12021.. £313.7ml, it must be remembered that included in this total are properties, mostly in use as clergy housing, whose value amounted to £247.9m12021.. £245.6ml. Much of the remainder of the a55ets shown in the balance sheet is held in restricted funds and cannot be used for the general purposes of the CDBF. Page 21

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 ReseNes policy Free reserves The CDBF has substantial ongoing responsibilities including the remuneration of some 260 stipendiary clergy, the upkeep of about 430 houses and the employment of about 50 full time equivalent staff. Having considered financial risk. liquidity requirements and the timing of cash flows throughout the year, and in particular the fact that c.70% of diocesan income comes from contributions from parishes who have their own cash flow challenges, the Trustees, policy is to hold a balance of readily realisable assets in the general fund equivalent to a minimum of 3 months, bLEdgeted expenditure. At 31 December 2022 the amount required under this policy totalled £4.8m 12020.. £3.Oml. Actu31 free reseryes at that date totalled £5.9m12021.. £5.9ml. Although the reserve5 at year end are above the target, it is expetted this will reduce over the coming year. The trustees are acutely aware that there are numerou5 pressures on diocesan finances. The trustees have budgeted for a deficit in 2023, and Parish Share pledges for 2023 have come in below the budgeted level. With the increased costs of living for parishioners along with increased energy costs for PCCS and the concerns of some parishes relating to the Church of England's di5CU55ions on human sexuality, there may be further redurtion5 in Parish Share contributions in year, and the prospects of significant increases in Parish Share in future years is low. In addition, the high levels of inflation mean that diocesan costs will likely be higher than budget. Therefore maintaining healthy cash balances remains important for our financial resilience and the trustees are of the opinion that the current surplus of the level of free reserves above the desired minimum is prudent. Designotedfunds The Trustees may, with the approval of the Board, designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed periodically 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 its intended use 15 Set out in notes 19, 20 and 23. At 310ecember 2022 total designated reserves were £7.6m12021. £7.3ml. the majority of which is tied Lrp in fixed assets. Re5trirted ¢7nd endowmentfund5 As set out in note 19. 20 and 23 the CDBF holds and administers a large number of restricted and endowment funds. As at 31 December 2022 restricted funds totalled £20.3m12021.. £22.Oml and endowment funds totalled £287.Om12021.. £278.5ml. Neither are available for the general purpose5 ofthe CDBF. Grant making policy The Memorandum of Association of the CDBF explicitly permits the CDBF to make grants in pursuance of its objects. The nature of grants made in 2022 is indicated in note 11. Grant5 were made to parishes to support mission projerts. to Ordinands to support them in training and to Clergy to assist with new appointments and relocation and with welfare needs. Page 22

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Investment policv The CDBF is empowered by its memorandum of association to invest monie5 not immediately required for its purposes. Responsibility for the management of diocesan assets is delegated (through the Finance Committee) to the Assets Committee which oversees investment policv. monitors performance and reviews strategy with its advisers. The CDBF is subjett to the Charities Arts, the Trustee Investment Act 2000 and Measure5 passed bv the General Synod of the Church of England. There are no restrictions on the CD8F's F)ower to invest subject only to the Acts and Measures set out above plus Charity Commission guidance CC14 and the ethical policy referred to below. Specific Trustee permission is required for investments in Private Equity, Hedge Fund5, Commodities or Derivatives. The CDBF endorses the Church of England Ethical Investment Policy and require5 Its investment managers to apply an ethical screen to the portfolio which precludes direct investment in companies which have more than IO% of their turnover in armaments, pornography, tobacco, thermal coal or tar sands. The ethical policy wa5 amended to exclude fossil fuel companies not in line with the Paris Agreement. The CDBF'S investment objectwes are to maintain and enhance the real value of the Fund over the long term, whilst producing an annual income which grows at least in line with inflation and having due regard for the possible need for liquidity. The risk profile is medium high with a commensurate level of volatility in capital value being acceptable. The permitted asset clèsses are detailed within the DBF'S investment policy as recommended by the Assets Committee. The base currency of the portfolio 15 Sterling. The minirnum acceptable credit rating for bond issuing or deposit taking institutions is BB. The portfolio is split among a number of investment managers who each have a different brief in order to achieve diversification and spread risk. Each manager operates on a discretionary basis with a normal weighting in favour of equities. Managers may be appointed to perform principally to an Income target (while maintaining capital value) or a Total Return basis. It is expected that funds will be fully invested. Benchmarks are agreed with each Investment Manager. In addition, the CD8F acts as trustee of a number of trust funds. which are invested in accordance with the related trusts. Note 20 provides details of the assets of each fund. note 15 summarises the movements in investments during the year and note 23 indicates the purposes of each fund. Page 23

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATEDI ANNUAL REPORT For the year ended 31 December 2022 The listed investments held at year end and their retum during the year are set out in the following table: Funds at 31 December Proportion 2022 of Portfolio £'IXQs Total Return in year Income yield in year CCL4 Managed CBF Investment Fund M&G Managed Charifund Charibond Charles Stanley Managed J M Finn Managed Cazenove 1.918 4.60% 119.17%) 14.106 22 9.819 7,424 8,408 41.697 33.87% 0.01% 23.55% 17.80% 20.16% Icrf).o% 5.09% 2.05% 3.73% 2.98% 1.79% 3.55% 10.49%1 2.05% 14.8%) 114.02%> 18.1%) 19.46%1 Fundraising Chichester DBF is aware of the Charities (Protection and social Investment) Act 2016, the Fundraising Code of Practice and the Charity Commission's guidance on fundraising. The trustees fully 5UPPOrt the aims of the legislation and guidan￿. The majority of the DBF'S income comes from other charitable bodies and it undertakes very little dirett fundraising activity involving individual donors. The DBF considers the origin of unsolicited donations and legacies when received. The DBF did not share or purchase any donor data with third parties and did not engage any professional fundraisers during the year. The DBF did not receive any complaints in relation to fundraising in 2022. PRINCIPAL RISKS AND UNCERTAINTIES The Trustees are responsible for the identification. mitigation and/or management of risk. To achieve this, a register of all the ri5k5 identified is maintained and, alongside it, a management and mitigation strategy. This is subject to review by the Trustees on an annual basis. and by the Audit Committee at each meeting, with responsibility for delivery of the mitigation strategies delegated to the Diocesan Secretary. The register is reviewed at least three times a year and is regularly updated. The principal areas where the risk of either failure to art or the impart of the events is considered 'high' and the associated mitigation strategies are: Significant1055 Of income or increase in expenditure. such as through the impact of the cost of living crisis or responses to the Church of England's discussions on human sexuality: Improved foTh¥ard plannin Close monitoring of income, expenditure. investments and cash flow: Close communication with parishes to maintain parish share payments- Maintenance of reserves- Exploration of alternative funding avenues. Falling clergy and congregation nLJmber5- Great care taken to make good appointments- A larger team is in Pla￿ to foster more vocations- Page 24

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Increased training and support for clerbry and parishes on discipleship courses, use of technology. evangelism. mission and outreach- Developing deanery deployment plans: Re-imagining ministry is a core part of the diocesan strategy with a strong focus on equipping and building confidence to energi5e lay ministry and development of self-5UPPOrting ministry.. The diocese is engaged in Strategic Development Projects with financial support from the national church and other missional investment to promote growth in strength and depth both in particular places and across the diocese. Safeguardin& where there is an occurrence of child. vulnerable adult or domestic abuse by someone working for or on behalf of the Church-. The CDBF employs a safeguarding adviser, a deputy two assistants, supported by two administrators and an independent sexual violence adviser- The diocese has a strong independent safeguarding advisory panel to review and challenge it5 actions. and excellent relationships with statutory agencies, who are all represented on the panel,. Policies are aligned with those of the national church,. All parishes are required to undertake a full audit of their practices and take action as appropriate based on the findings.. Training is compuI50ry for all relevant staff. office holders and volunteers.. The CDBF has engaged a communications consultant in addition to it5 communicats"on5 officer to handle matters which come into the public arena. including matters relating to non-recent abuse. Trustees and Diocesan Officers continue to assess the risks and uncertainties brought about by continuing impact of the Covid-19 pandemic. the cost of living crisis, and discussions on human sexuality among other matters. Cashflow is continuously monitored. along with the impact of this and other crises on income levels. A number of scenarios have been modelled. assessinE the consequences on easily available funds, and the asset portfolio reviewed to ascertain the potential source of additional short-term financin& should it be required. STRUCTURE AND GOVERNANCE Summary Information about the structwe of the Church of England The Church of England is by law established and HM The King 15 Its Supreme Governor. It 15 organi5ed into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is a See under the care of a Bishop who is charged with ihe cure of souls of all the ￿Ople within its geographical area. This charge is shared with priests within benefices and parishes which are sub-divisions of the Diocese. The National Church has a General Synod comprised of ex-officio and elected representatives from each diocese and it agrees and lèys before Parliament Measures for the governance of the Church's affairs which, if enacted by Parliament. have the force of statute law. In addition to the General Synod, the Archbishops, Council has a coordinating role for work authorised by the Synod. The Church Commissioners manage the historic assets of the Church of England and the Church of England Pensions Board administers the pension schemes for clergy, employees and lay workers. Within each diocese. the Diocesan Bishop exercises leadership supported by a Diocesan Synod and a senior staff of suffragan bishops and archdeacons. The Diocese of Chithester is divided into twenty- Page 25

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 one deaneries. each with its own Synod and within each parish there is a parochial church council which 5hare5 responsibility with the parish priest for the mission of the church in that place. in a similar way to the Bishop with the Diocesan Synod. Whilst each diocese is a separate entity with a clear responsibility for a specific geographical area. being part of the Church of England requires and enables mutual supwrt between dioceses. OrgaDi5ational 5trurture The Chichester Diocesan Fund and Board of Finance Ilncorporatedl is a company limited by guarantee INO. 001335581 and a registered charity (No. 2431341 governed by its Memorandum and Articles of Association. The company's principal artivity is to promote, assist and advance the work of the Church of England within the Diocese of Chichester. It wa5 established in tts present form in 1914. Every eligible member of Diocesan Synod is a member of the company for company law purposes and has a personal liability limited to £1 under their guarantee as a member in the event of the company being wound up. Governance and policy of the CDBF are the reswnsibility of the Trustees atting as the Finance Committee, who are also directors of the company and trustees for the purpose5 of tharity law. The Bishop of Chichester is the ex-officio president of the Diocesan Board of Finance, and appoints a chair and deputy chair of the Finance Committee after consulting with the chair5 of the House of Clergy and House of Laity of Diocesan Synod. The members of the Finance Committee are the rnembers of the Bishop's Council and Standin8 Committee of the Diocesan Synod from time to time. The Bishop of Chichester, the chair and depL hair of the Finance Committee, the two suffragan bishops and the four archdeacon5, the Dean of Chichester, the chair5 of the Oiocesan Synod House of cler￿ and House of Laity, and the Dean5 of Women's Ministry are ex-officio members. together WTth one member of the House of Clergy and two members of the House of Laity from each archdeaconry elected from and by the members of Diocesan Synod every three years and up to five additional members of Diocesan Synod co-opted by the Bishop after consulting with the chair5 of the House of Clergy and House of Laity of Diocesan Synod. The details of Trustees who served during the year. the majority of whom were elected in 2021 to serve from l January 2022. are set out on page 33. The Diocesan Synod, the statutory governing body of the Diocese. is an eletted body drawn from across the Diocese with responsibility for setting the vision and strategy of the Diocese, guided by the Bishop's Council and Bishop's Senior Staff Team. The Synod membership is elected every three years,. the majority of the members were elected in 2021 to serve from August 2021. The Synod elects twelve of the Trustees of the Diocesan Board of Finance. Whilst the CDBF is a separate legal entity, with clear responsibilities under both company and charity law as well a5 a governing memorandum and articles of association, by virtue of the National Institutions Measure 2000 the CDBF is subject to the direction of Synod in all its actNities. unless such direction is not in accordance with the governing documents or statutory regulations. Historical assets arising from unexpended accumulations o* sale proceeds of redundant Church of England School propertie5, held a5 The Diocese of Chichester Con501idated Educational Endowments, Page 26

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 re accounted for in the restricted Aided Church Schools fund and are managed by the CDBF in consultation with the Diocesan Board of Education. The CDBF is designated as Dioceson Porsonuoes 8oord. with responsibility for making decisions concerning the management of all clergy houses. Declslon making structure Corporate priorities and the overall financial strategy for the Diocese. in its primary object to promote, asslst and advance the work of the Church of England within the Diocese of Chichester, are set by the Diocesan Synod and CDBF. The respon%bility for ensuring that these priorities and stralegies are delivered 15 delegated to the Diocesan Secretary who is supported by a number of heads of department and their Staff. The company meets once a year in general meeting to receive the annual report and financial statements and to appoint auditors. The company meets a second time each year to receive and agree the annual budget, prepared and approved by the Trustees. The Trustee5, meeting within the context of the Bishop's Council and Standing Committee of the Diocesan Synod. hold at least four meetings during the year to fonnulate and monitor the implementation of policies on mission, ministry and finance by'.- Initiating proposals for 3rtion by the Synod and advising it on matters of policy Transacting business of the Synod when it is not in session subject to the directions of the Synod and in accordance with its Standing Orders Acting as the Trustees of the CDBF. includin8 reviewing overall activities, assessing performance. and deciding investment and other policies Planning the business of the Synod, preparing agendas for its sessions, and circulating to members information about matters for discussion Advising the Bishop on any matters he may refer to the committee Initiating consideration of any restructuring of Synod Committees and Departments which rnay be necessary and the establishment of ad hoc review groups, their terms of reference and membership Carrying out such other functions as the Synod delegates to it Appointing members to commf(tees and representatives to external bodies, subject to the direction of the Synod Page 27

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 The Trustee5 met five time5 during the year. M¢¢tings Att¢rKied I•Tnw¢e fix pan of Tryst¢¢ The Ri Rtsd Dr Martin Nlamtr The Ri Revd Will Hazlewixwj The Ri Revd Ruth Bu5hTrager The Verv Revd Siephe￿ Wain¢ The Ven tknBela Martin The Ven Martin Llovd Williams The Ven Luk¢ Ir¥itte.Capcl The Ven tk Edward Dowler Lesle% Lintt Mr Gu} Leonard Mr Duncan Irvin¢ Revd Canort Lisa Bartlett Revd Canon Mark Gilbert Mr john Booth Revd Canon Ann W8izerKker R¢vd Philip Coekin Mry Millv Murphv Mr Michacl Julian Thom Mr Bradl￿ Smiih Mi55 Ali50n Marchani Mrs V￿¢￿¢ I4urgess rs Sara Stonor Revd Ar¥Jrei¥' Woodward Reverend Hekn (iayrau Mrs Sharon Phillips Miss Margarei Lllmle R¢vd Thomas Holbird The Trustees are assisted in their work by four principal sub-committees-_ Operoting Committee= monitors management accounts and the budget. the collection of Parish Share pledged by parishe5. and the acquisition, use and disposal of parsonages and other assets, and exercises the authority delegated to it by the Trustees in areas such as approval of capital expenditure, grants and loans. It a150 undertakes the CDBF'S responsibilities as Diocesan Authority with respect to parochial property under the PCC (Powers) Measure 1956 and the Incumbents and Churthwardens (Trusts) Measure 1964. Audit Committee- supports the Finance Committee in its responsibilities regarding issues of risk, ontrol and governaft￿ aNI associated assurance. Assets Committee.. oversees investment policy, monttor5 performance and reviews strategy with it5 advisors. It also undertake5 the CDBF's responsibilities under the Church Property Measure 2018 Iwith regard to glebe assets). Page 28

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Parson(Jge5 and Hou5e5 Commtttees: two sub-committees, one for the east of the Diocese and one for the west. undertake the CDBF'S responsibilities under the Church Property Measure 2018 (with regard to parsonages) and the Repair of Benefice Building Measure 1972. In 2019 an assessment of the CDBF'S compliance with the Governance Code was undertaken. A good level of compliance was identified together with some area5 for improvement. Trustee recruliment, 5elertlon and indurtion Trustees are members of the Bishop's Council and Standing Committee of the Diocesan Synod and are selected as set out above. Trustees are given induction at the outset of the triennium and at other times as appropriate. They are also informed before seeking membership and, at all other relevant times, of the role and function of the Committee. Some staff hold the title of 'Oirecto<. but this relates to their funttion within the organisation ènd has no legal meaning within the Companies Act. All Trustees are required to maintain their entry in the record of declarations of interest and loyalty. Remuneration of key management per￿nnel Emoluments of higher-paid employee5 are determined by a remuneration committee consisting of the Chair and Deputy chair of the Finance Committee, the Chair of the House of Clergy, the Chair of the House of Laity, and a suffragan bishop or archdeacon nominated by the Bishop of Chichester. The terms of reference for this group are established by the Bishop's Council and include recommending policy on remuneration to the Finance Committee and determining the remuneration for employees of the CDBF. In 2015, a full independent benchmarking exercise was carried out, taking into account comparable jobs in the local area, in the sector nationally, and in another Diocese. Further independent benchmarking of specific posts is undertaken whenever a post is filled, responsibilities substantially amended. or a review is requested. Dele8ation of day to day delivery The Trustees and the sutrTrcommf(tees which asslst them in the fulfilment of their responsibilities, rely upon the Diocesan Secretary and hef colleagues for the delivery of the day to day activities of the company. The Diocesan Secretary is given specific and general delegated authority to execute the business of the CDBF in accordance with the policies framed by the Trustees. Funds held as Diocesan A￿hority The CDBF is Diocesan Authority (akin to custodian tru5teel in respect 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 a55et5 are not aggregated the financial statements as the CDBF does not control them. and they are segregated from the CDBF'S own assets by means of a separate bank account and accounting system. Further details of financial trust assets. whose market value amounted to £20.3m at 31 December 202212021.. £24.IOml. are available from the CDBF on request. and are summarised in note 31. Where properties a￿ held as Diocesan Authority. the deeds are identified as such and held in safe custody by the CD8F's solicitor. Winckworth Sherwood. Page 29

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Funds held on behalf of Sd￿1$ The Board of Education las incorporated within the CDBFI receives contributions from governors of Church 5choo15 Within the Diocese in connection with major repair and capitsl project5 to church schools and also government grants in connertion with the same. The Board of Education administers these monies as managing agent and makes appropriate payments to contractors for work carried out. The monie5 do not belong to the Board of Education and as such the receipts and payments are not treated a5 income and expenditure in the Statement of Financial Artivities. Anv monies held at the balance sheet date are t￿ated as creditors on the balance sheet. The amount included in current assets and current liabilitie5 a5 at 31 December 2022 is £1.981k12021: £1,915kl. Connected Bodles and Related Partles The Church Commissioners, which acts on behalf of clergy with HM Revenue and Customs and through which the CDBF pays for clergy stipends. The Church of England Pensions Board, to which the CDBF pays retirement benefit ontribution5 for stipendiary clergy and employee5. It also offers schemes to provide housing for clergy in retirement. Chichester Diocesan Association for Family Support Work with whom the CDBF works and to whom grant5 are made. The Chair of the Finance Committee is a trustee of Farnily Support Work. Mother Agnes Trust, four of whose six trustees are members of, or secretary to, the Finance Committee. Transactions with the main cate8ories of related parties are identified in appropriate places throughout the financial ststements. Where materiality of transactions merits more detailed disclosure, this is given in note 30 to the financial statements. The only related corporate parties with whom the DBF has transacted are the Multi Academy Trusts which manage 22 Church of England Schools in the Diocese as well as one Stand Alone Academy. These trusts are as follows= o The Diocese of Chichester Academy Trust ILKAT) 8ishop Otter Academy Trust IBOAn Hurst Education Trust IHEI 0 Bishop Luffa Learning Partnership IBLLPI South Downs Education Trust ISDETI o Bohunt Education Trust IBET) St Lawrence CE Primary School. Hurstpierpoint Tenax Education Trust All of these are accountable to the D8E and the Bishop of Chichester in relation to their Christian distinctiveness and to the Diocese of Chichester Edutation Trust IDoCEll via its Members for their operation. The Dirertor of Education. one of the DBF'S key management per50nnel, 15 a Trustee of DCAT, HET, BOAT and Tenax and the Archdeacon of Chichester is the Chair of OCAT. During the year the DBF performed due diligence on schools intending to convert orjoin the any of these trust5. DOCET is also a related party, which shares trustees with the DBF, but no transattions have taken place. Page 30

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Volunteers The CD8F is dependent on a huge number of people involved in church activities both locally and at diocesan level. We believe that the number of active volunteers lor volunteer hour51 given to the mission and ministry of the church is a key indicator of the health of a church. The service provided to a community through church volunteering also has a significant impact on people's relationship with the church particularly at times of crisis. The C08F greatly values the considerable time given by all its committee mernber5 and other volunteers across the Diocese in pursuit of its mission. TRUSTEES, RESPONSIBIUTIES The Trustees are responsible for preparing the Annual Report and the financial statement5 in accordance with applicable law and regulations. Company law requires the Trustees las Directors) to prepare financial statements for each financial year. Under company law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the Trustees must not approve the financial statements unless they are Satisfied that they give a true and fair view of the state of the affairs of the CDBF and of the surplus or deficit of the CD8F for that period. In preparing these financial statements the Trustees are required to= Select Suitable accounting policies and apply them consistently Observe method5 and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basi5 unless it is inappropriate to 355ume that the mmpany will continue in operatbon The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the CDBF and enable them to ensure that the financial Statements comply with the Companies Act 2CMJ6. They are also responsible for safeguarding the assets of the CDBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the CD8F's website. Legislation in England and Wales governing the preparation and dissernination of financial statements and other information included in Annual Reports moy differ from legislation in other jurisdictions. STATEMENT OF DISCLOSURE TO THE AUDITOR So far as the Trustees are aware= al there is no relevant audit inforniation of which the charitable companvs auditor is unaware, and Page 31

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 b) we have taken all the steps that we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the charitable compan￿5 auditor is aware of that information. APPOINTMENT OF AUDITOR The appointment of auditors to the CDBF is proposed to be subjert to a tendering exercise for the coming year, and it will be proposed at the Annual General Meeting that the appointment be made by the Directors after the tenders. Page 32

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 ADMINISTRATIVE DETAILS Trustees No Trustee had any beneficial interest in the tompany during 2022. The following Trustees served during the reporting year or were in post at the date of this report.. President.. The Right Revd Dr M Warner18ishop of Chichester) Ex-officio: The Right Reverend W Hazlewood IBi5hop of Lewesl The Right Reverend R Bushyager (Bishop of Horshaml The Venerable M Lloyd Williams IArchdeacon of Brighton & Lewesl The Venerable L Irvine-capel (Archdeacon of Chichester) Ichair of House of Clergy) The Venerable Dr REM Dowler (Archdeacon of Hastingsl The Venerable A Martin (Archdeacon of Horshaml The Very Revd S Waine IDean of Chithesterl Ito 29.4.231 Mrs L Lynn Ichair of the Finance Committee) The Revd Canon A Waizeneker (Dean of Women's Ministry) (to 25.1.221 The Revd HLF Garratt (Dean of Women's Ministry) (from 6.2.221 Mr J Booth (Chair of House of Laity) Appointed by the Bishop- Mrs S Stonor The Revd A Woodward Ifrom 21.1.22) Elected by Diocesan Synod.. Archdeaconry of Chichester Mr 8 Smith Mr G Leonard (to 2.4.221 The Revd Canon PM Gilbert Miss M Lumley (from 14.7.221 Archdeaconry of Hor5harn Mrs V 8urge55 The Revd L Barnett Mr M Thomas Arthdeaconry of Brighton and Lewes Mrs A Murphy The Revd T Holbrrd Mrs S Phillips (from 31.3.22) Archdeaconry of Hastings The Revd P Coekin Miss A Marchant Mr D Irvine (Deputy Chair from 10.2.231 Page 33

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) ANNUAL REPORT For the year ended 31 December 2022 Senior staff and advisers Diocesan Secretary Finance Director Gabrielle Higgin5 rim Redding (to September 20221 Catherine Dawkins (from October 20221 Trevor Cristin Rebecca Svryer Scott Ralph Director of Education Director for Apostolic Life Property Director Registered Office- Di0￿53n Church House. 211 Newchurch Road. Hove. 8N3 4ED Bankers Barclays Bank plc. 90-92 High Street, craw￿V, RHIO IBP Independent Auditor Haysmacintyre LLP, 10 Queen Street Place. London EC4R IAG Solicitors Winckworth Sherwood. Minerva House. 5 Montague Close. London SEI 9BB Investment adwsers CCLA Investment Management Ltd, 80 Senator House. 85 Queen Victoria Street. London, EC4V 4ET M&G Securitie5 Ltd, M&G House, Virtoria Road, Chelmsford, Essex CMI IF8 J M Finn & Co, 4 Coleman Street, London EC2R STA Charles Stanley & Co Ltd. 25 Luke Street, London EC2A 4AR Cazenove Capital, 31 Gresham Street, London EC2V 7QA Insurers EIG, Beaufort House. Brunswick Road, Gloucester, GLI IJZ In approving this Trustees, Report. the Trustees a￿ also approving the Strategic Report in their capacity as company directors. ON BEHALF OF THE TRUSTEES The Rlght Revd Dr Martln Warner President of the CDBF Mr5 Lesley Lynn Chair of the Finance Committee 20 April 2023 Page 34

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) For the year ended 31 December 2022 Opinion We have audited the financial statements of Chlchester Diocesan Fund and Board of Flnance {Incorporated) for the year ended 31 December 2022 which comprise Statement of Financial Activities, the Summary Income and Expenditure Account. the Balance Sheet. the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting frarnework that hès been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financral Reporting Standard 102 The Finoncit71 Reporting St17ndard opplicoble in the UK ond Republic of Irelond Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the finanoal statements- give a true and fair view of the state of the chJrit3ble company's affairs as at 31 December 2022 and of the charitable CoMpan￿S net movement in funds. including the income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance ￿th International Standards on Auditing IUKI11SAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's respon&bilities for the audit of the financial statements section of our report. We are independent of the tharity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trusteeswith respect to g￿ng concern are described in the relevant sections of this report. Other inlowmation The trustees are responsible for the other information. The other information comprises the information included in the Trustees, Annual Report. Our opinion on the financial statements does not cover the other infomiation and. except to the extent otherwise explicidy stated in our report, we do not express any form of assurance conclusion thereoTr. In connection with our audit of the financial statements. our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially Page 35

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) For the year ended 31 December 2022 misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is 3 material misstatement of this other information, we are required to report that fatt. We have nothing to report in this regard. Opinions on other matters pre5tribed by the Cornpanies Art 20( In our opinion, based on the work undertaken in the course of the audit- the information given in the Trustees. Annual Report Iwhich includes the strategic report and the directors. report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is conslstent with the financial statements- and the strategic report and the directors. report included within the Trustees. Annual Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report ty exceptlon In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees. Annual Report (which incorporates the strategic report and the directors. report). We have nothing to report in respett of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion= adequate accounting records have not been kept by the charitable company,. or the charitable company financial statements are not in agreement with the accounting record5 and returns,. or certain disclosures of trustees. remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees for the financlal sLitements As explained more fully in the trustees, responsibilities ststement set out on Page 31, the trustee5 (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being Satisfied that they give a true and fair view, and for Such internal control as the trustees determine is necessary to enable the preparation of financial ststements that are free from material misstatement. whether due to fraud or error. In preparing the financial ststements. the trustee5 are responsible for assessing the charitable compan¢s ability to continue as 3 going concern. disc105ing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the fiTrancial ststements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable a55urance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when It exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic deci5i0n5 of users taken on the basis of these financial statements. Page 36

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) For the year ended 31 December 2022 Irregularities. including fraud. are instances of non-compliance wrth laws and regulations. We design procedure5 in line with our responsibilities, outlined above, to detett material misstatement5 in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the and the environment in which it operates, we identified that the principal risks of non-tompliance with laws and regulations related to charity and company law applicable in England and Wales. and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impart on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial Statement5 lincluding the risk of override of controls). Audit procedures performed by the engagement team included- Inspecting correspondence with regulators,- Di5CU5sions with management including consideration of known or su5perted instances of non-compliance with law5 and regulation and fraud.. Reviewing the contro15 and procedures of the group relevant to the preparation of the financial statements to ensure these were in place throughout the year: Evaluating management's controls designed to prevent and detect irregularities- Identifying and testing journals. in particular reviewing the controls and procedures in place for these,. Challenging a5sumptrofts and judgements made by management in their critical accounting estimates in particular valuation of property 355ets and investment properties- and Challenging assumption5 and judgements made by management in their critical accounting estimates. The key areas subject to estimation are fair values assigned for property assets and investment properties. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increase5 the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be le55 likelyto become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud snvolves intentional concealment, forgery. collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at.. www.frc.or -uk auditorsres onsibilities. This description forms part of our auditorfs report. Page 37

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) For the year ended 31 December 2022 Use of our report This report is made solelyto the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matter5 we are required to State to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's member5 as a body, for our audit work, for this report. or for the opinions we have fomed. Adom Halsey (Senior Statutory Auditor) for and on behalf of Haysmacintyre LLP. Statutory Audttor 10 Queen Street Place London EC4R IAG S June 2023 Page 38

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) STATEMENT OF FINANCIAL AcllviTIES For the year ended 31 December 2022 Unrestritted Funds Restricted Endowmènt Total Funds Total Funds General De5yated Funds Fund5 2022 2021 Noiè Income and endowments fwom Donations Parish share Other donations Charitable activities Other activities I3￿57 201 773 13.657 L878 894 13,024 1,353 817 696 1,928 54 17.872 3b 1.627 121 15 1.241 334 3,338 742 920 757 2.161 359 19,706 Investments Other 16318 Expenditure on Raiyng Fund5 Charitable activities 108 164 18.934 19,098 15,878 15,934 148 148 2.￿)8 3.016 17,742 17,928 Net incomellexpenditurel tsel investment gainsll105sesl 384 1 981 322 561 Unrealised gains on investments IS Reali5ed Ilossesl on investments Net 8ainslllossesl on in¥estments 1991 28 11.9571 12.0221 14121 12.4341 14.0501 14631 14.5131 5,340 1671 5.273 1991 28 I2.￿8) Net Incomellempendhurel 285 701 11.6861 12.4341 13.9051 5.217 Transfer beiween funds 13 2331 150 1981 181 Other recoBni5ed gainslllos5e51 Gainslllossesl on revaluation of fixed assets Nèt movement In funds 14 224 304 10,716 8.463 10.990 7.085 25,235 30.452 52 11.7341 Total fuTh15 brou8ht forward 5.932 7.276 22.023 278.497 313.728 283.276 Total funds ¢arr•ed forward 19 20,289 286.9E4J 320.813 313.728 All activitie5 derive from continuing activities. The notes on pages 43 to 82 form part of the financial Statements. Page 39

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2022 Total 2022 Total 2021 Total Incomlng resources Resource5 expended Operatlng surpluslldeficitl for the year Net gains on investment5 Net 8alnllloss) for the year 19,706 119,0981 608 12.0791 11,4711 17,819 17,799 20 2,275 2,295 Other comwthnslve Income: Revaluation of fixed assets Total comprehensive gain/llossl 274 11,1971 630 2,925 The Income and Expenditure Account is derived from the Statement of Financial Attivities with movements in endowment funds exduded to comply wtth company law. All income and expenditure is derived frorn continuing artivities. Page 40

THE CHICHESTER DIOCESAN FUNO AND BOARD OF FINANCE (INCORPORATED) BALANCE SHEEr For the year ended 31 December 2022 Company Number- 00133558 2022 1021 £￿00 FIXÉD ASSÉTS Tangible assets Investments 14 261.929 47.441 309,370 252.692 49.804 302.496 15 CURRENT ASSEf5 Debtors 16 1,471 6.963 2.389 7.004 8,093 17.486 Cash on dep051t Cash at bank and in hand 9.397 17.831 CREDITORS: amounts falllngdue wlthin one ye•r 17 { 6.3801 16.2461 NETCURRENT ASSETS 11.451 11,240 TOTAL ASSEfs LESS CURRENT LIABlllnES 320.821 313,736 CREDITORS: amounts falli￿ thje after more than one year Pension scheme liabih'ties 181 181 Other credit¢ys NET ASSETS 320.813 313.728 FU￿s Ertdowme￿ fvnds 286.960 278.497 Restrlcted Income funts 20,289 22.023 Unrestricted Income fuThJ5 General lunds 5.984 7,580 320,813 5,932 7,276 313,728 Oesi8nated lunds TOTAL FUND5 19120 The Cash Flow Statement and the Notes f￿M part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 20 April 2023 and signed on behalf of the Board by.. The Right Revd Or Martin Warner President of the CDBF Mr5 Lesley lynn (hair of the Finance Committee Page 41

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED> CASH FLOW STATEMENT For the year ended 31 December 2022 2022 2021 É'r￿0 Net cash LKrtAow from opeTrti tivities (see bel(wl 8S91 1.3241 Cash flowsfrom Investl￿ artlvltles Dividends l interest and ￿￿t from Investments Proceeds from the sales of.. 2.161 1.928 Tangible fixed assets Fixed assets Investmenis 4.1 1.224 5.277 3.874 Purchase of.. Tangible fixed as5et5 Fixed assets In¥estment5 2.4171 3.(M)5 3,1031 4.703 Net Cash prv4lded by In¥estl actlvltie5 2.069 3.273 Cash fftows from financlr¥ artlvitles Loans Irepzidl 53 2971 Net ush used In fi￿nCIn0 tlvltles 53 2971 Change in cash and cash equivalerts in the reprytinK period 1.263 1.652 Cash and ush equlvalents at i J￿￿ 15.097 13.445 Cash and Cash equlvalents at 31 Detember 16.360 Analysis ofcash and Cash equI￿lents Cash in Hand 9.397 8,093 Notice deposits Ile5S than 3 months) Reconclliation of movements in fvndsto net (ash Irom operating activityes Net e¥pendlwre before in¥estment 8aln5 561 Adjustments*or IGainsl on the disposal of fixed assets Oepreciation char8es Investment Inco￿ 3341 37 531 34 2,1611 1 1,9281 Change in value of Value Linked Loans Ilncrea5ellDecrease in Debtors IncreasellDeerea5el in Creditor5 Net Cash used in operating actNitie5 918 848 73 169 859 1.324 Page 42

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL sTATEmE￿s For the year ended 31 December 2022 I. ACCOUNTING POUOES al General infomiation The Chichester Diocesan Furbd and Board of Finance Ilncorporatedl is a charitable company limited bv guarantee incorporated in England and Wales (company registration number rKJ1335581 and registered with the Charity Commission Icharity registration number 2431341. The re8lStered office address is Diocesan Church House. 211 New Churth Road. Hove 8N3 4ED. In the event of the charitsble company being wound up the liability in respect of the guarantee is limtted io £1. The CD8F meets the definition of a public benefit entity under FRSIO2. b) Accouniing cornienlion and basls of preparation The financial statements have been p￿pared under the historical cost convention, with the exception of freehold properties. which are included at their fair value as determined under the applicable valuation method a5 detailed in If). and fixed asset investments. which are included at their market value at the balance sheet date. The financial statement5 have been prepared in atcordance with the Statement of Recommended Practice for Charitie5- Second Edition. eftertive I" January 2019, the Companies Act 2006 and applicable accounting standards IFR51021. tl Going concern Although the global pandernic i513rgely behind us. the financial statements are approved during another period of economic uncertainty with high levels of inflation and a cost of living crisis. The tnJstees are mindful of the financial pressure5 on par15hes therefore the ability of PCCS to make their parish share contributions. Whilst a significant general fund deficit is budgeted for 2023, the trustees do not consider that 2023 or beyond would give rise to any inability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as thev fall due especially given that the charity has sufficient liquid a55ets. including short tem cash deposits and investments, which could be readily realtsed to meet liabilitie5 should there be an unexpected curtailmeni of income. Furthef. the t¥ustees consider that there are no maierial uncertainties over the charity's financial viability. Accordingty the trustees have assessed that the use of the going concern assurnptlon 15 appropriate in preparing these financial statemenrs. dl Incoffle All income is bncluded in the Ststement of Financial Artivities ISOFAI when the CDBF is legally entitled to them as income or capital respectively. receipt is probable and the amount to be reco8ni5ed can be quantified with reasonable accuiacy. Parish Share 15 recognised as income in the yeai in which tl 15 received. Rent is recognised as incorne in the period in which it is received. ill. Interest and dividends are recognised as income when receivable. Iv. Grants received which are subject to pre-conditions for entrtlement specified by the donor which havè not been met at the year-end are included in uedirors to be carried forward to the following year_ Paro¢hlal fees are recognised as income when received. Donations other than grants are recognised when receivable. vii. Gatns on disposal of fixed a55ets for the CDBVS o¥m use li.e. non-investment assets) are accounted for as other incoming resource5. L055e5 on disposal tsf suth assets are accounted for as other expenditure. Page 43

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 vlll. Stlpends ful￿ intome. The Stipends Fund Capttal account 15 govemed by the Diocesan Stipends Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. The income is fully expended within the year of receipt and the legal restrittions are therefore 5at15fièd. e) Expendlture Expenditure Is included on the accruals basis and has been dassified under headings that aggregate all Costs related to the Statement of Financial Activity C3te80ry. Costs of raising fvnds includes costs ￿lating to the temporary renting out of parsonages and investment management cost5 of glebe and any other investment properties. Charitable expenditure 15 analysed between contribution5 to the Archbi5hops' Council, expenditure on resourcing mission and ministry in the parishes of the diocese. and expenditure on education through Church of England schools in the diocese. lil. Grants payable are charged in the year when the offer is conveyed to the recipient except in those a5es where the offer is conditional on the rectpient sat15fyin8 perforrnance or other discretionarv requirements to the sat15faction of the CD8F, in which case the grants are recognised when the conditions a￿ fulfilled. Records of grants offered subjett to such conditions which have not been met at the ye3r-end are kept. but committed Érants are not atcrued as expenditure. iv. Support C05ts cgnsist ol central management, administration and Bovernance costs. The amount of support costs spent on raising funds and other activities is considered to be immater¢al and all support costs are allocated to the purpose of charitable attivities. Costs a￿ allocated wherever possible dire¢dy to the a¢twity to which they relate. but where Such direct allocation 15 r￿t possible, the remainder is allocated on an approximate staff usage basis. Pension contrlbutlons. The CD8F's staff a￿ members of the Church Workers Pension Fund or the Teachers Pension Scheme and clergy are members of the Church of England Funded Pensions Scheme (see note 261. The pension costs charged as resources expended represent the CDBF'S contribvtions payable in respect of the accounting period. in accordance with FRS102. Deficit funding for the pens40n schemes in which the CDBF participate5 15 accrued at currerbt value in ￿ed￿tOrS. distinguished between contribution5 falling due within one year and after more than one vear. Movements in the value of these schemes are recognised in the Staiement of Financial Activities. fj Tan8lble fimed assets and depreclation Freehold properties The CDBF measures freehold property asset5 ifb accordance with an estimate ol fair value as required by FRS 102. The rnethodolo8y employed includes the use of market data for relevant property sales and where POS5ible, specific recent sales data frorn property websites and estate agents. This is carried out using an online valuation tool. It is planned that twenty percent of the property portfolio is revalued each year on a rolling basis. The resi of the portlolio is adjusted where material by a percenta8e b35ed on the result5 of the actual valuations carried out in the year. Page 44

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 202Z ACCOUNTING POLICIE5 Ittsntinutd) Depreciation is not provided on buildings as any provision lannual or cumulativel would not be rnaterial due to the very long expected remaining useful economic life in each case. and because their expected residual value is n(rt materially le55 than their carrying value. The CDBF has a policy of regular structural inspection. repair and maintenance. which in the case of par50nage properties ts in 3ccoid3nce with the Repair of Benefices Buildings Measure 1972. and properties are therefore unlikely to deteriorate or suffer from obsolescence. In addition. di5P05als ol properties occur well before the end of their economic lives and disposal prcKeeds are ijsually not less than their carrying value. Through a process of regular visits by the Liocesan Property Department, Ihe Trustees perforn) annual impairrnent review5 in accordarFce with the requirements of FRS102 to ensure that the carrying value is not rnore than the recoverable amount. Propertie5 subjert to volue linked louns Properties which have been bought with the aSsista￿e of value-linked loans from the Church Commissioners are stated ijsing the value of the related loan at the balance sheet date. Each year end the respecrive property and loan are carried at their fair value. Investment propertie5 Glebe properties and assets which are held for invesiment purposes and renied out have been included at their faif value. The Tnethodology employed includes the use of market data for relevant property sales and where possible, specific recent sales data from property websitès and Èstate agents. This is carried out using an online valuation tool. It is planned that twenty percent of the property portfolio is revalued each year on a rolling basis. The resr of the portfolio is adjusted where material by a percentage based on the results of the actu31 valuations carried out in the year. Porsont7ge houses The CDBF has followed the requirements of FRS102 in its accounting treatment for benefice houses Iparsonagesl. FR5102 reou*res the accountin8 treatment to follow the Substan￿ of arrangement5 rathe than their stricr legal form. The COBF is formalty responsible for the maintenance and repatr of such propertie5 and ha5 sorne jurisdiction ovei their future use or potential sale if not required as a benefice house. but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trvstee5 therefore consider the rnost 5Ultable accounting policy is to capitalise such properties as expendable endowmeni assets and to carry them at their fair value. Par50nage houses are revalued on a five year cycle. with 20% being valued each year on a rollin8 basis. The rnethodology ernployed intludes the Use of market data for relevant property sales and where possible. specific recent sales data Irom property website5 and estate agents. Thi5 15 carried out using an online valuation tool. It is planned rhat twentv perceni of the property portfolio 15 revalued each year on a rolling basis. The rest of the portfolio is adjusted where material by a percentage based on the results of the actual valuations carried out in the year. gl othertanglble fixed assets All caprtal expenditure over £5.OW is capitalised and dep￿Ciated as follows. Depreciatjon 15 provided in order to wrire off the cost Iless any esiimaied disposal proceeds at prices at the tirne of the asset's acquisitlonl of fixed assets over their currently expected useful economic lives at the following initial rates'.- Flxtijres and fittings- 25% per annum- reducing balance basls Computer Equipment- 20Yè per annum- straight line basis h) Other accountlng polltles Flxed asset Investrnents are induded in the balance sheet at market value and the gain or loss taken to the Statement of Financial Actiwties. Leases. The COBF ha5 entered into operating leases for the use of certain assets. The rental is charged as expenditu￿ in the year to which it relate5. Page 45

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS {continued) For the year ended 31 December 2022 ACCOUNTING POUCIES Icontinuedl 11 Flrtanclal In￿rUMentS- assets and Ilabililies Debtors: Debtors are recognised at the settlement amount due Cash and cash equl¥alents- Cash at bank and cash in hand includes cash held in short term highly liquid investments with a short maturity of three months or less from the date of acqtsisition or opening of the deposit or sirnilar account. iii. Creditors and provisions.. Creditors and provrsions are ￿COgnised where the CDBF ha5 a present obligation resulring from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provision5 are normally recogntsed at their settlement amount after allowing for any trade discounts due. bv. Value Linked Loans: The CDBF has a number of loan5 for which the settlement proceeds are based on the value of the equity in a property- As this con5titute5 a non-ba5ic financial instrument under FRS102 these loans have bèen recognised at fatr value and are revalued at each reporting date. Any gain5 or105ses arisin8 at year end are recognised in the SOFA. Concesyonary Loans: Loans obtained or made by the CDBF to further its charitable purposes at rates below the prevailing market rates are classified as concessionary loans and accounted for in accordante with settion 34 of FRS 102. Such roans are inrtially recognised and measured at the amount received or paid and subseqLtentW amended to reflect any repayments, interest and impairment. 11 Fund balanos Fund Balances are split between unrestritted Igenernl and desi8natedl. re5trirted and endowment funds. Unrestricted fvnd5 are the CDBF'S corporate funds and are freely available for any purpose within the charitable company'5 objects, at the discretion of the CDBF. There are two types of unrestritted funds-. General funds which the CDBF uses for the general purposes of the CDBF 51. De518nated funds which are set aside out of unrestricted funds by the CDBF for a purpose specified by the Trustees Restrlcted ful￿$ are income funds subject to conditK)ns imp05ed by the donor as specific terms of trust or else by legal measure. Endowmèfit fvnds are those held on trust ro be retained for the benefit of the charitable company as a capital fund. In the case of the Stipends Fund Capitsl and Parsonage Houses Fund there are discretionary powers to convert capital into income and, as a resutt, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endt>wment. -special trusts- las defined by the Charities Att 20111 and any other trusts where the company acts as trustee and controls the managemènt and use of the funds, are included in the companws own financial statements as charity branche5. Trust5 where the CD8F acts merely a5 CLtstodian trustee with no control over the managernent of the funds are not inclvded in the financial statements but are summarised in the note5 to those financial ststements. Page 46

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMEKfs (continued) For the year ended 31 December Z022 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In preparing these finanual statements. management has made judgements, estirnates and assumptton5 that affect the application of the COBF'S accounting policies and ihe reported assel5, liabilitie5. incorne and expenditure and the di5c105urÈ5 rnade in the financial statements. Estimates and judgements are continualty evaluated and are based on historical experience and other factors. induding expectations of future events that are believed lo be reasonable under the circLtmstances. Key afeas subject to estimation are fair values assigned for property a$5ets and investment properties. In 2020, 2￿￿ of parsonage and 98% of glebe houses were valued using an on-line valuation tool which uses relevant market data io prowde a valuation for each property. In 2021 and 2022 the same tool was used to value an additional 20% of parsonage property and revalue 20% of glebe property. The èverage uplift in values identified by these valuations was then applied to the ￿5t of the portfc4io. The D8F is responsible for the maintenance of the house5 and employees visit the properries on a regular basis. Any irnprovements are capitalised at cost and added to the carrying value of the properties. The occ¢Jpants of the houses notifv the 08F promptly of any damage or disrepair. Any variances from actual tsir market value and the esiimated value ol the portfolio will aflect the value of tangible fi.xed assets ￿Ported on the balance sheet, and other gains arbd losses reported in the Siatement of Financial Activities. Income and expenditure are not impacted except to the extent that profit or loss is calculated on the sale of a property. The trustees consider this methodology and the resulting balance sheet values to be an appropriate e5tirnate of fair value for reportin8 purposes. 3. L)ONATIONS 3a. Parish Share The majority of donations are collected from the parishe5 of the diocese through the parish sh¥e system. Re5trKted Endowment Total Fund5 Totsl Funds Funds Funds 2022 2021 General Oes*nated Current Year pledge5 Shortfall in contribution5 13.761 1631 13.S98 13.761 1631 13.598 13.176 1951 12,981 Receipt5 for previous year Total Income S9 13.657 59 13.657 43 13.024 Current year parish share receipts represent 98.8% of the total pled8e$12021- 98.5%), or, when receipts for previous years are included. 99.2% of the total ￿edgeS12021- 98.8%). Page 47

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS Icontinued) For the year ended 31 December 2022 DONATIONS {continuedl 3b. Other donatlons Umstilet￿ R5trfttsd End(T￿￿nt Total Totsl Fund5 GÈnEral De51yHted Fw FuThJ5 2022 zozi 8enefact TrustGTant 124 174 173 Archbi5hop5Counol RME Bl¢xkGrant Grants ff£*Tr)other 1294 320 1.3Z2 320 586 505 or8anisatlons DonatK)ns 35 54 13 36 Legac￿$ 25 25 201 1.627 1.878 1.353 4. CHARITABLE AcfiviTIES UnrÈslrkt￿ Funds GenerJl lknignated R¢strKt¢d Endowment Totsl Funds Totsl Funds Funds Fund5 2022 2021 £'ooo £.￿0 Statutory fees for parochial ser¥ites Churth Commissioners, guaranteed annuities Parish trust Income Generated Incorne Church Schools ffaining & othe¥ 593 593 627 ioi ioi 51 ioi 14 51 129 773 13 142 894 67 817 121 Page 48

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 S. OTHER ACTIVITIES Unrestricted Furbd5 General DeSI￿ated Re5trirted Endowrnent Total Funds Total Funds Funds Funds 2022 2021 Rents receivable - Parsonages 742 742 15 15 757 757 696 696 6. INVESTMENT INCOME unwestri￿ Fund5 General Designat Restthted Endowment Totaf Funds Total Funds Funds Funds 2022 2021 Dividends receivat4e & interest receivatde Rents recavable . aebe 762 158 920 970 1.732 429 2.161 1.560 368 1.928 271 1.241 7. OTHER INCOMING RESOURCES Vnrestrirted Funds General Designated Restricted Endo4wntnt Total Funds Total Funds Funds Funds 2022 2021 Other income Gain/ (Lossl on sale of propertv 25 25 334 334 53 25 334 359 54 8. FUNDRAISING COSTS Unrestlthd Funds General Destgnated Restricted Èndowment Total Funds Totsl Funds Funds Funds 2022 2021 Investment Manager fees Glebe ￿PaIrS & improvernent5 67 61 128 155 li 47 36 164 31 Page 49

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 9. CHARITABLE ACTivmE5 Unrestrkted Funds Genef•l twnated Restrkted Endowment Total Fund5 Total Funds Funds Funds 2022 2021 E'O)O Contrlbutlonsto Ar(hblshops' Councll Training for Ministry National Church Responsibilities Grants and Provisions Mission agency pension costs Retired clergy housing costs P¢)oling of ordin3nd5 maintenance grants 631 631 632 440 441 26 238 26 238 28 232 47 1,288 121 1,266 1.288 maintenan￿ grant5 paid to ordinond5 are reported annual￿ to Ministry Division of Archbishops Council and combined with 5irnilor grants paid by other D￿Cese$. An extra charge or credit is then rnade to the CDBF for the difference between the amount attualty paid and irs assessed s￿rOl total nètiortal rost. Unrestrirted Funds General De5iznated Restricted Endowment Total Funds T￿al Funds Fun(ts Funds 2022 2021 Resour(in8 Min55try and Mis5ion- Parish Ministry Stipend5 and National Insurance Pension contributions Defined benefit pension scheme moveftnt (see Note 261 Housing costs Mission Fund grants Removal & re5ettlernent 8raThts Clergy welfare Ministry Support 6,338 7.(XJ2 1.929 7,034 2,189 20 1811 2.953 1811 3.354 41 251 173 225 12,794 20 2.129 67 294 124 253 12,110 23 41 378 251 65 225 11.554 108 1,092 Page 50

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 9. CHARITABLE AcnviTIES Icontknued) Unrestricted Funds General Designated Restsicted Endowment Trtal Fund5 Total Funds Funds Funds 2022 2021 Resourcing Mtnistry and Mission- support for PaThh Mlnistry Ordination Traning Lay Ministry Children and youth work Apostolic Life Common Good Safeguarding Diocesan Advisory Committee Pastofal and Redvndant Churches uses Redundant churches Communications Mission projects ISDFI Chancellor & Registrar Grants 319 347 39 666 125 902 iii 143 199 13 271 87 145 231 16 271 87 32 214 io 437 78 74 72 74 72 59 201 92 515 70 81 1.503 70 636 3.249 555 1.746 133 2.954 Support and Govemance for parish ministry (note 101 714 2.217 714 3.963 625 3579 1,746 Resourcinfj Ministry and Mi55ion- Church khools Church Schools de￿rtment Support ￿)d Governance for Church Schoo15 (note 101 728 70 798 706 91 819 91 81 787 70 Totsl Charitable activit￿$ 15,878 2.908 18,934 17,742 Page 51

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS {continuedl For the year ended 31 December 2022 10. ANALy￿s OF SUPPORT AND GOVERNANCE COSTS Resourc5ng fflin￿try and rni55ion Support for Mlnlstry Education Church Total Funds Total Funds 5choD 2022 2021 Support Central services department General office department Finance department IT departrnent Depreciation 138 1gJ 182 150 33 693 18 24 23 19 156 214 205 169 37 781 89 223 19) 146 682 G0￿ManCe E￿ernal Audit 22 715 25 24 7C6 91 Page 52

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued For the year ended 31 December 2022 11. ANALYSIS OF GRANTS MADE Total Funds Total Funds 2022 2021 Individuals Ir￿titutiOnS Number From unrèstrirted funds for nat•)nal church ￿SponsIbl11t1es. Contribution5 to Archbishops. Council 1,289 1,289 1,266 From unrestrirted The Chichester Oiocesarb Association for Family Support Work St Bartz Trust - Youth work Clergy Training Clergy Moves Cler8y and families for Welfare Othei org3nisatons 36 36 199 95 197 251 38 28 514 197 30 251 38 34 556 294 177 42 361 From designated PCCS lor Mission projects 41 41 41 67 67 41 From restricted PCCS for Mission projecis Clergy and familie5 for Welfare Overseas mission agencies Aided Schools Ordinands in training PCCS for energy costs AD Care of Churches 15 477 341 173 173 43 15 52 107 315 315 311 332 311 522 441 929 868 Totals 1.036 I.LX72 1,813 2,815 2,562 Page 53

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE {INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS Icontinued) For the year ended 31 December 2022 IZ. STAFF Cosrs 2022 2021 Employeè tosts durin8 the year wern •sfollow>" Wages and salaries National insurance contributions Pension costs 1.930 193 295 2.418 212 312 2,518 The average number ofPer￿n$ employed by the grovp durfnÈ the year. 2022 Number 2021 Number Administration and financial management Ap05tolic Life Common Good Property Education - Church Schools Safe8uarding & inclusion 23 14 23 14 13 15 62 63 The avera8e fiumber of persons employed by the group during the year= based on full-tirne equivalents.. 2022 Number 2021 Number Administration and finanoal management Apostolic Life Common Good Propertv Education - Church Schools Safeguafding & inclusion 21 li 21 li io 52 52 2022 Number 2021 Number The numbers of staff whose emoluments lincludinB benefjts in kind but excludinK Pension contribution51 amounted to more than £fA),(K(I were as follows.. £60.001- £70.C £70.001- £80.C((J Page 54

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 12. STAFF COSTS Icontlnuedl Remuneration of key maTha8ement pef$L￿n Key management pefsonnel are deemed to be those having authority and responsibility, dele8ated to them by the trustees. lor plannin& directing and controlling the activities of the diocese. During 2022 they were.. Diocesan Secretary and Company Secretary Diocesan Director for Apostolic Life Diocesan Director of Education Diocesan Director of Property Diocesan Finance Director Gabrielle Higgin5 Rebecca Swyer Trevor Cristin Scott Ralph rim Redding Ito September 20221 Catherine Dawkins (from October 20221 Remuneration lincluding Employer Nll and pensions for these employeeslposts amounted to E441,843 12021- £418,405). Termlnation payments During the year termination payments totalling £NIL weie paid12021 . £Nill. Tru5tees' emoluments No Trtjstee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses, totalling £9,66512021- E5,3091 in respert of General Synod duties. duties as archdeacon or rural dean, and other duties as Trustees. In addition. seven Trustees received grant5 totalling £6.776 12021 1 Trustee £7501 in respect of their role as parochial clergy. One trustee. who is also the Chair of thè Audit Committee. holds two part time roles". parish priest and D8F employee a5 the LGBTQI Liaison Off icer. The following table gives deiails of the Trustees who were in receipt of a stipend andlor housing provided by the CDBF during the year". Stlpend No No Yes Yes Yes Housing Yes Yes Yes Yes Yes The Rlght Revd R K F Bushyagei The Ri8ht Revd W P G Hailewood The Venerable L Irvine-capd The Venerable M Lloyd-williams The Venerable E DO￿er r 11 The Venerable A Martin The Revd Canon PM Gilbert The Revd P Coekin The Revd H Garratt The Revd A Woodward The Revd T Holbird The Revd Canon L Barnett Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Ye5 Yes Page 55

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTE5 TO THE FINANCIAL STATEMENTS (contlnued) For the year ended 31 December 2022 12. STAFF COsr5 (continued) The CD8F is responsible for fundin8 via the Church Commissioners the stipends of licensed stipendiary dergy in the diocese. othèr than bishops and cathedral staff. The CDBF is also responsible for the provision ol housing for stipendiary cler8y in the dicKese including the suffragan bishops but excluding the diocesan bishop and cathedral staff. 2021 £'o 6.418 585 1,929 257 9,189 2021 Slipends National insurance contributions Pension costs- current year Pension costs- deficit redu¢tion contributions paid 6.477 557 1,755 434 The Stipends of the Diocesan Bishop and Svffr3gan Bishops are paitl and fvnded by the Church Commissioners and are in the range £38.050- £46,64012021 range £37.670- £46.1801. The annual rate of stipend. funded by the CDBF. paid to Archdeacons in 2022 was £37,93012021- £36.6481 and other tlergv who were Trijstees were paid in the range £27.$40- £29.(￿l2021 range £27,295 - £28,767). 13. ANALYSIS OF TRANSFERS BETWEEPI FUNOS Unrestrtcted Funds General Destgnated Restrirted Endowment Funds Funds Movement on defined benefit pension scheme Administration charge- Aided khools fund Mission Fund Transfer for clergy conference 2025 1811 181 481 501 Icoi 2331 Ic 150 1 981 181 Defined benefrt pen￿n scheme moveftwnt. Transfrr of the movement to the Diocesan Stipends fund. Admiftlstration thargÈ- Aided Schools fund. This reflects the administration charge of the Schools, Buildings Officer costs charged io the Aided Schools restricted fund. Mlssjon Fund Annual transfÈr from the Pastoral Fund forthe Mission Fund aer￿ Conference 2025 Transfer from general funds towards the Clergy Corbference planned for 2025. Page 56

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued} For the year ended 31 December 2022 14. TANGIBLE HXED ASSETS Freehokl L￿5ho1￿ Offte Prwrty Property Equipment Total Cost or ￿l￿all At l January 2022 Additions th"sposals Revaluation At 31 December 2022 252.374 2.395 1 4.1421 10,960 261,587 253 697 22 253.324 2,417 4,1421 10.999 262,598 39 292 719 Depreciation At l January 2022 Charge lor the year At 31 December 2022 632 37 669 632 37 669 Net 8ook Value At 31 December 2022 261.￿7 292 261,929 At 31 Ccember 2021 252.374 253 65 252.692 All but one ol the properties in the balance sheet are freehold and are vested in the CDBF, except lor benefice house5 which are vested in the incumbeni_ Some properties have been purchased with the help of a value-linked loan from the Churth Commissioners- when disposed of. the appropriate share of the net sale proceeds will be rernitted to the Commissioners. and the related loan liability extinguished. The value of such properties included above amounts to £1.337.QKMJ12021.. £1.278,9241. Properties are subject to cycle of valuations and repairs are char8ed as expenditure with the SOFA. Page 57

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) NOTES TO THE FINANCIAL sfATEMENTS (continued) For the year ended 31 December 2022 IS. FIXED ASSET INVESTMENTS At l January 2022 Change in At Market 31 Decembei Valuè 2022 Addrlion5 D￿posal Trnnsfer Unrestritted Funds "sted investment5 Unlisted investrnent5 Investment property 116 1.504 31 1.518 734 855 29 70 763 2.286 31 Re5trkted Funds Listed investments 20312 20￿12 1 1.9571 1 1,9571 18.874 18.874 6291 End0wm￿t Funds Listed investrnents Investment property 23.257 853 1 1 2.1251 102 1 2.0231 21,305 4,976 26,281 61 28.137 853 Total 1 4.050 47.441 Trustees are aware of the continuing impact of the COVID-19 pandemi¢ and other Global events on the value of investment assets. The DBF is. however. a long-term investor and currently has no immediate plans to realise investments in order to raise cash. 16. DEBTORS 2022 zozi Concessionary (interest freel loans to Parishe5 Loans to Parishes School projects Other Debtors and prepayments 367 392 562 374 581 872 712 1,471 Included wlthin the above are debtots amounts due after morè than one year as follows: Contesshonary linterest freel loans to Parishes 248 415 415 Page 58

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 17. CREDITORS: amounts falling due within one year 2022 2021 Loans due in one year Church Cornmissioner5 value-linked loarbs Oeferred income Payments received in advance from Education Funding Authority Other Taxes and social Security Other creditors and accruals Clergy Pension Scheme 1.553 81 1.981 61 2,771 1.492 83 2.289 1.941 438 6,246 6,380 Value-linked loans IVLLS) ￿present amounts advanced to the COBF for the purchase of properties on an eouity sharin8 basis and are repayable on the disposal of the related property. 312021.. 31 of these loans are for the benefit of partshes and have been used to purchase houses for curates. 412021.. 41 of the loans have been used by the 08F for the purchase of house5 for deserted spouses. As at 31st December 2022 the Board had no intenrion of disposing of any of those properties funded via VLLS. As the tirning of the repayment is uncertain the loans are shown a5 due wlthin one yeai. 18. CREOITORS: amounts falling due after more than ¢)nÈyear 2022 2021 £'ocK* Penslon Scheme liabilff¢ies (see nott 261 Clergy Pension Scheme Church Workers Pension Scheme- DBS Page 59

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2022 19. SUMMARY OF FUND MOVEMENTS ljanwv 1022 £￿00 Galns •nd 310ecember Losses 2022 £'ooo Inrlvne Expenditwe Tvbfer UNRESTRICTED FUNDS General 5.932 16.318 I 2331 991 5,984 De￿￿￿èted Funds Prcperty Parish Mission Other designated funds 6.4B3 253 yo 7.276 253 6,736 313 532 7.580 411 100 150 1481 251 Restrlcted Funds Diocesan Pastoral Diocesan Stipend Clergy we￿re Clergy Wehre IB Wildl Jenkinson Trust TraininE Unwersitychaplaincy Hayllar Trust Poling Endovmient The Arndd Bequest Cler8yWHIows SDF RME 14.756 334 1.047 91 25 1 1351 1.047 1031 501 1 1.732 13.173 1.138 1,176 775 19 22 35 1 351 45 87 67 93 38 16 141 23 19 21 791 1 320 1 7681 3151 ArchdEaci)n5' loans Aided Church Schcx)Is Diocesan Overseas Counc Clergy Hardship Ener8y Cost Other restritteé funds 831 1051 1,908 2.754 52 2,829 89 1 481 106 357 1061 3111 41 3,016 46 75 20,289 67 22.023 98 1.958 Endowment Fur Ex endèble Parson28elBenefite hw5e5 Diocesèn Stipends Cler8yWelfa Elfinsward Terrfs Cross 198.CK12 67.253 2.350 2.306 5.735 8.703 ioii 2011 1981 224 206,705 67,333 2.149 2.108 5.959 181 PerTr￿nent Jenkinson Trust Training University chaplaincy HaWlarTru# Poling Endowr￿n1 TheArnokl 8equest 49 938 732 45 857 756 70 604 373 286.960 811 24 645 410 278.497 411 371 8.282 181 Total fvnds 313.728 19,0981 6.477 320.813 The balarKe on the restritted fund for SDF represents 8rants made to paris￿$ under the Strateg￿ development fund program lorwhich grants will be re£ved from the fvnd postyear end. Page

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 20. SUMMARY OF ASSETS BY FUND xed assets Cwrrent Tangible Invertments Assets Credltors Nel As5et5 uNRESTRl￿ED FUNDS General 49 1,517 5.223 1 8051 5,984 Deslgnaièd Funds Property Parish Mi5%0n (Aher designated funds 5.989 762 161 312 526 823 6,736 312 532 5.989 7,580 RestrirtÈd Funds Diocesan Pastoral Clergy Welfare Clergy Welfare IB Wildl Jenkinson Trust Training University thaplaincv Hayllar TTUSI Polin8 Endowment The Arnold Bequest Clergy Widows 5DF RME 16.072 1 2,8981 1.391 ( 1.5531 73 19 13.173 1,175 774 19 1,338 701 87 93 38 19 22 87 93 38 19 22 Archdeacons. loans Aided Church Schools Diocesan Overseas Countil Energy Cost Other restricted fund5 940 1.157 968 5.627 { 4.0301 52 46 70 5,660 1 S.5831 1.908 2.753 52 75 20,289 1.338 18,874 Endowment Funds Ex endable Parsonage/Benefice houses Diocesan Stipends Clergy Welfare Elfinsward Terry's Cross 197.542 50,323 9,163 20.444 1 3.4341 1.9 158 1.954 154 206.705 67,334 2,149 2,109 5.959 5.959 Permanent Jenkinson Trust Training University chaplaincv Hayllar Twst Poling Endowment The Arnold Bequest 45 857 756 70 796 27 67 5 { 353 26.282 61 728 i} 20 6.125 373 286.960 254.552 Total funds 261.929 47.441 17.832 1 6,3881 320,813 Page 61

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 21. PRIOR YEAR SUMMARY OF FUND MOVEMENTS olanM at l January Balan￿ ai Golns and 31 Decembèr 2021 ¢om Expendliurt Tfdn5fer UNRESTRicfED FUNDS General 5,738 15.392 1 15.2781 12 5.932 Ds1￿￿ted Funds Property Parish Mi55ion Other des¢8nated funds 5.839 220 615 6.674 644 6.483 253 540 7.276 67) 761 1431 645 Rertrirted Funds Diocesan Pastoral Diocesan Stipend Clergy Welfare Clergy Welfare18 Wildl Jenkin50n Trust Training University chaplainry Hayllar trust Polin8 endowment The Arnold Bequest Clergy Widows SOF RME Archdeacons, loan$ Aided Church Schools Diocesan Overseas Council Other restricted fund5 13,047 371 1.0841 781 611 li 321 1041 1,850 14,756 1.078 1,138 905 22 23 1 77 21 32 1 39 81 43 36 23 27 1 14 31 141 67 36 23 21 469 1 5251 4781 41 241 1.824 31 59 1 109 153 1.960 2,829 107 151 45 2,378 67 22,023 98 2,248 Endowment Funds Ex end8ble Parsona8elBenefice houses Diocesan Stipend5 Cler8y Welfare Eifinsward Terry's Cross 179. Go.¢}￿ I 2.107 2.ffi7 5.167 Isi 981 1 18.797 7.460 243 239 198.LX)2 67,253 2,350 2,306 5.73S U91 1 201 rm Jenkinson Trainin Universily thaplaincy Hayllar trust Poling endowment The Arnold Bequest 49 938 97 732 77 645 410 278,497 69 574 367 250.9 71 43 27,603 S3 1 20 Total fvnds 283.276 17.872 1 17.9281 30.508 313,728 Page 62

THE CHICHESTER OIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS Icontinued) For the year ended 31 December 2022 22. PRIOR YEAR SUMMARY OF ASSETS BY FUMD FIX￿ assèts Current Tangible In%*stments Assets Net Assets Creditors UNRESTRicfED FUNDS General 65 114 6.611 1 8581 5.932 Designated Funds Propertv Parish Mission Other desiBnated funds 5,765 734 151 253 534 772 6,483 253 540 7.276 5.765 740 Restrtrted Funds Diocesan Pastoral Cler8y Welfare Clergy Welfare IB Wildl Jenkinson Trust University chaplaincy Hayllar trust Poling endowment The Arnold Bequest Cler8y Widow5 SDF RME Archdeacons, loans Aided Church Schools Diocesan Overseas Countil Other restricted funds 17,730 1 2.9741 1.041 122 22 14.756 1.138 1,279 1.1821 783 22 84 67 36 23 21 67 36 23 21 1,031 1,262 929 5.343 1 3,7761 1.960 2.829 94 67 62 4,85Y) 1 4.9581 1.279 20.811 22,023 Endowment Funds endable Parsonage18enefice houses Diocesan Stipends Clergy Welfare Elfinsward Terfy s Cr05S 190.737 48,410 7.263 21.792 1 2.5101 1 4381 2.167 183 2.128 178 198,000 67,254 2,350 2,306 5,735 5,735 Jenkinson Training University chaplaincy Hayllar trust Poling endowment The Arnold Bequest 49 71 938 733 77 645 410 278.497 701 30 74 647 1 386 28.139 21 24 5.213 1 4381 245.583 Total funds 252.692 49.￿4 17,486 1 6.2541 313.728 Page 63

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 Z3. DESCRipnof4 OF FUNDS General The general fund is the CDBfs unre5tricled undesignated fund available for any of the CDBF'5 purposes. Property The fund value 15 Set at the level equivalent to the net book value of corporate properties. Church House, Hove and various houses used by retired clergy make up the value of this fund. Parish Mission Fund made available from the Benefact Trust and diocesan sources to support parish mission projects throughout the Diocese. Other Designated Funds The majority of these funds ￿preSentS 3 gr3nt received from the Church commissione￿ to meet the tost5 of two additional curates ordained in 2021. Parish Development Officer role which was also appointed io from 2021 to 2022 and a Deputy Diocesan Direttors of Ordtrnands role which was appointed to from 2022. There are also funds being +￿Id for the Clergy Conference planned for 2025. Diocesan Pastoral The diocesan pastoral account was set up under the provisions of the Pastoral Measure 1983. The restritted purposes for which the account may be used are.. to defray costs incurred for the purposes of the Measurp ov any scheme or order made under the Measure except for salaries of regular diocesan employees. to make loans or grants for the provision, restoration, improvement or repair of churche5 and parsonage houses in the diocese. other Purposes of the diocese or any benefice or parish in the diocese to make grants or loan5 to any other diocese to transfer funds to the diocesan stipends fund income or capital accounts. Cler8y Welfare Fund is governed by a 1993 Charrty Commission scheme with income being used for ihe welfare of Clergy. their spouse5 or other li￿nSed staff who work or have worked in the diocese. Clergy Welfare IB Wildl Fund derives from the sale of a property, Lapwings, bequeathed for purposes connected with cler8y welfare. The fund is used for the cle¥gv wellbeing service. Jenkinson Trust Fund represents a legacy from William Jenkinson. Income from the fund is used for necessitous Church of England gentlewomen or as the diocesan fund finds most fitting. University Chaplaincy Fund is governed by a trust deed dated 21 JUW l%1. The furbd is to provide a house for the UnNersity of Sussex chaplain and to assist that chaplain in the fulfilment of hislher duties. Hayllar Trust Fund represents a legacy from Sidney Hayllar. Income from the fund 15 used to help clergy With personal costs such as education and personal support and general financial pioblern5. Page 64

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 23. DESCRIPTION OF FUNDS {conlifiuedl Poling Endowment A fund to be use(1 for the welfare of clergy and their families in need or hardship, servin& in trainin8 or retsred. of the Diocese of Chichester. Cler8y Widow5 Fund represents a legacy from Charles Peckham to provide financial grants or othef benefits for widows of the ckr8Y. Archdeacons. Loans The fund arose from th￿e gifts arKI the proceeds of a fundrai5in8 campaign. The accumulated income is used to make interest free loans to parishes to help fund repair5 to churches and church hall5. Aided Church Schools The Aided Chufch Schools Fund . which includes the ConS￿ldated fund of The Diocese of Chichester Consolidated Educational Endowments. represents the accumulated sale proceeds of redundant Church of England School propert￿S. It5 use is restricred by Section 287121 of the Education Act 1993 to capitsl and maintenance work of Church of England schools in the diocese and education gerterally at Church ol England Schools in the diocese. The CDBF 15 trustee of these funds. which are managed in consultation with the Diocesan Board of Education. Also included are capital fund5 held on behalf of aided schools and funds donated by parishes for the benelit of those aided schools. DKJcesan Overse35 Council The fund comprises the net incorne raised after grants made by the Diotesan {￿erseaS Council. The Council promotes the L*oces3n interest in, support for arbd engagement with mission work ol the churches of the Anglican CommunTron in co-operation with the Church of En8land's P3rtner5hip fow World Mission accredited mission agencie5 and partners. It raises fund5 mainly by way of the Harvest Appeal each year and in reaction to world mission appeals and projecrs. Strategic Development Fund The Di(Kese has been awarded funding from the Church Commissioner5 towards a number of parish based mi55ion projects in ihe Diocese. The fund5 received are restricted to be used on these projects. RME 85ock Grant A restricted grant received frorn Ministry Division to be used to meet the costs of ordination training. aer8y Hardship Fund Fund5 made available by the Church Commissioners to 5UPPOrt clergy and parish worker5 With increased heating costs. The funds are adrninistered by CDBF Ener8y Cost Funds made awailable by the Church Commissioners to SUPPOrt parishes with increased heating costs. The funds are administered by CDBF. Page 65

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) Forthe year ended 31 December 2022 23. DESCRIPTION OF FUNDS {conllnuedl Parsonage/Benefice Houses The parsonagelbenefice property fund consists of resources restricted to provision of benefice houses in the diocese. They are represented by the benefice houses or by sale proceeds of former benefice houses. Although benefice houses are vested in the incumbents for the time being of the benefice5 concemed, the CD8F is obliged to mainiain them. and to ensu￿ thèt there are sufficient benefice houses for the pastoral structure of the dioce5e- where a benefice house 15 no Ion8er required then it is usually transferred into the unrestritted corporate ownership of the CDBF. Diocesan Stipends The diocesan stipends captral fund has been created from the diocesan stipends fund capitsl account 3S5ets held under the Church Property Measure 2018 to prowde income for clerBy stipends. It represents 8lebe property, accumulated sale proceeds of glebe property. and sale proceeds of some benefice houses and surplus benefice endowments following pastoral reorganisation. Capital funds may be used for the purchase, improvement and maintenance of glebe property and benefice houses. Elfin5ward The fvnd was created by the sale of a former retreat house. The income from the fund is used to suppon stipends. communicat￿nS work and retreat grants. Terry's Cross The fund represent5 the value of a house, ori8inally 8iven as a gift to the diocese, to provide accomrnodatbon for retired clergy and church workers. Training This fund has been built up byvarious bepuests. The income 15 Used to support ordination training costs and for modest discretionary grants to assist ordinands in need. 24. CAPITAL COMMITMENTS At 31 December 2022 the CDBF had Capital expendtture cornmitments authorised but not contracted for of £NIL12021 £NILI and contrarted for but not yet due of £NIL12021- ENILI. 25. OPERATING LEASES Future minimum rentsls payable until the end of the lease under nOn-Can￿lIable operating leases are a5 follows.. 202Z 2021 Other operatlng leases: Total amount payable within one year Total amount payable in the second to fifth years inclusive 13 io 16 19 Total lease payments recognised as an expense in the year were £12,92912021- £18,651). Page 66

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 26. PENSIONS The CDBF participates in frtrur pension schemes. A. Churth of En8land Funded Pensions SthÈmè {CEFPS1 for ￿lpendIary clergy admirwstered by the Church of England Pensions Board_ Churth Worktrs Pen￿On Fund ICWPF) for Lay workers administered by the Church of England Pensions Board. C. Churth Workers Penslon Fund ICWPFI Pension Bullder a35sic for Lay workers administered by the Church of England Pensions Board. O. Teathers, Pènsiort Scheme (TPS) governed by the Teachers. Pengon Scheme Ae8ulations 2014. A. Church of En6land Funded Pensions Stheme {CEFP51 Chichester OBF participate5 in the Churth of En￿and Funded Pensions Scheme for stipendtary clergy, a defined benefit pension Scheme. Thi5 scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme5 separately from those of the Re5PDn5ible Bodie5. Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends. The scheme is considered to be a multi-employer scheme a5 described in Section 28 of FRS 102. This means it is not P955ible to attribute the Scheme's assets and liabilikn'es to each specific Re5pon5ible Body. and this means contributions are accounied lor as if the Scheme were a defined contribuiion scheme. The pension5 costs charged to the SOFA in Ihe year are contributions payable rowards benefits and expen5e5 accrued in that year12022.. £1,928.880, 2021". £2,188.6641. ￿u5 the figures highlighted in the table below as being ¥ecogni5ed in the SoF*K giving 3 iotal char8e of £1,490.880 lor 202212021.. £1.774.6641. A valuation of the Scheffle is carried out once every three years. The r￿st recent Scherne valuation completed was carried out at as 31 December 2021. The 2021 valuath)n revealed a surplus of £560m. based on assets of £2,720m and a funding target of £2.160m. assessed using the fdlowng assumption5-. An average discount rate of 2.7% p.a., RPI inflation of 3.6% p.a. land pension incre￿e5 consistent with thisl,- CPIH inflation in line with RPI less 0.8% pre 2030 movine to RPI with no adjustment from 2030 onwards. InC￿aSe in pensionable stipends in line with CPIH.. Mortality in accordance with 90% of the $3NA tables. with allowance for irnprovements in mortality rates in line wth the CM12020 extended model wtih a long term annual rate of improvement of 1.5%. asmoothin8 parameter of 7. an initial addition to mortaliiy improvements of 0.5% pa and an allowance for 2020 data of Oyo li.e. w2020- 0%). Following the 31 December 2018 valuation, a deficit recovery plan wa5 Put in place until 31 December 2022 and the defioi recovery contwibution5 las a percenta8e of pensionable stipend51 were as set out in the table below. An interim reduction to deficit contributions to 3.2Yt) of pensionable stipends wa5 made with effect frorn l April 2022. Following finalisation of the 31 December 2021 valuat￿n, deficit contributitrns ceased wlth effect frorn l January 2023. since the Scheme was in surplus. Page 67

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 26. PENSIONS Ic<)ntinued) A5 at 31 December 2020 and 31 December 2021 the defictt recovery Contributions under the recovery plan in force were as set out in the table bel(Mf. For senior office holders. pensionable stipends are adjusted in the calculaiions by a multiple, as Set out in the Scheme's rules. % of pensionable stipends January 2018 to December 2020 11.9% January 2021 to December 2022 7.1% Deficit repair contributions se￿lOn 28.IIA of FRS 102 requires agreed deficit recovery payments to be retognised as a liability. However, as there are r¢0 agreed deficit recovery payments from l January 2023 onwards. the balance sheet liability as at 31 December 2022 is nil. The movement in ihe balance sheet liability over 2021 and over 2022 is set out in the table below. 2022 2021 Balance sheet liability at l January 438,￿0 852,OCfJ Deficit contribution paid Interest cost Irecognised in SOFA) Remaining change to the balance sheet liatM"lity' Ireco8ni5ed in SOFA) I257,(￿)> 1434,0001 i.o(x) I9,￿] 1181,LX)01 Balance sheet liability at 31 De￿mber 438.(XK) Comprises change in agreed deficit rewvery ￿an and change in discount raie and assumption5 between vear-ends. This liability represents the present value of the deficit contributions a8reed as at the accounting date and hès been valued using the following a$5UrnPtions. No assumptions a￿ needed for December 2022 35 there are no agreed defitit retovery payments going forward. No price inflatron assumption was needed for December 20215ince pensionable Stipends for the remainder of the recovery plan were already known. December 2022 December 2021 December 2020 Discount rate Price inflation Increase to total pensionable payroll 0.2% pa 3.l%pa 1.6% pa nla -1.5% nla The legal strurture of the scheme is such that if ar￿her Responsible Body fails, Chichester DBF could become re5pon5ible for paying a share of that Responsible Body's pension liabilities. Page 68

THE CHICHESTER OIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS Icontinued) For the year ended 31 December 2022 26. PENSIONS l¢othtlnuedl chU￿h Workers Penslon Fund {cwPFI Chichester Diocesan Board of Finance ICDBFI participates In the Defined Benefits kheme ID851 section of CWPF for lay staff. The Scheme is adminisiered by the Church of England Pension5 Board. which holds the assets of the 5¢heme separately from those of the Employer and the other participating employers. The Church Workers Pension Fund has two sÈctions'. l. The Defined 8enefits Scheme The PènsM)n Builder Scheme. which has two sub5ertion5- A deferred annuity Section known as Pension Builder Class￿, and b. A cash balance section known as PensTron Builder 2014_ Dtfined Benefits Stheme The Defined Benelit5 Scheme I-DBS-I seciion of the Church Workers Pension Fund prO￿deS benefits for lay staff based on final pensionable salaries. For funding purposes, D8S is divide(l into sub-poo15 in respect of each participating employer as well as a further sub-pool. known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortaliiy and post-retirement inve5tmerbt returns. The division of the DBS into sub-pools is notional and is fof the purpose of calculating ongoing contributions. They do not alter the fact that the assets ol the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time. a notional Pfemium is transferred from employers. sub-F)ools to the Life Risk Pool and all pensions and death benefits are paid from the tsfe Risk Pod. The scherne 15 a multi-employei scheme as tlescribed in SeCt￿n 28 of FRS 102. It 15 rsot possible io attribute D85 assets and liabilities to specific employers. since each employer. through the Life Pi5k Settion. is exptssed to attuarial risks associated with the current and forrner employees of other entities participating in D8S. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pension5 Costs charged to the SOFA during the year are contributions payable towards benefiis and expenses accrued in that year12022.. £13.887. 2021.. £13,687) plvs the li8ure5 in relation to the DBS deficit highlighted in the table below a5 being recognised in the SOFA. giving a total credit of nil in 202212021.. £9.313 credit). If. following an actuarial valuation of the Life Risk Pool. there is a surplus or deficit in the pool. further transfers may be made from the Life Risk Pool to the employers, sulFpools. or vice versa. The amounts to be transferred land their allocation between the sub.poolsl will be settled by the Church of England Pensions Board on the advice of the Actuary- A valuation of OBS is carried OLEt once every three years. The most ￿centlY finalised wa5 carried out as at 31 December 2019. In th15 valuation. the Life Risk Section was shown to be in deficit by E7.7m and £7.7m was notionally transferred from the employers. sub-pools to ihe Life Risk Section. This increased the Employer contributions that would otherwse have been p3yable. The over311 deficit in DBS wa5 £11.3rn. Thè next attuarial valuation is due at 31 December 2022. Page 69

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (contlnued) For the year ended 31 December 2022 26. PEP4510MS Icontlnvedl FollowFng the 2019 valuation, the Employer entered into an agreement Wtth thÈ Church Workers Pension Fund to pay expenses of £6.5CK) per year. In addition. deficit payments of £7,387 per year have been agreed for 1.83 years from l April 2021 in respect of the shonfall in the Employer sub-pool. This obligation has beèn recognised as a liability within the Employer's financial statements. Due to the improvernents in the projected funding position of the Fund. the Church of England Pen5ion5 Board a8reed that deficit contributions should cease with effed from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer's financial statements as at 31 December 2022. A liability has been recognised at earlier dates. Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as a liability- The movernent in the provision is set out below- 2022 2021 Balance sheet liabilty at l January 31,OC Deficit contribution paid Interest cost Irecognised in SOFA) Remainin8 chan8e to the balance sheet liability'lrecognised in SOFA) -7,000 -16,CM)O Balance sheet liability at 310ecember 8,000 Comprises charjge in agreed deficit recovery plan and change in discount rate between year-ends. The liability reported on the balance sheet is £8.(KXJ and the 2022 movement wtll be refletted in the 2023 accounts. This liability represents the present vaue of the deficit contrtbutions agreed as at the accounting date and has been valued using the following a55UrnPtions, set by reference to the dufaiion of the defi¢it recoverv payments.. December 2022 Oecember 2021 Decernber 2020 Discount rate 1.3% 0.4% The legal Structure of the scheme is such That if another employer fai15, the employer could become responsible for payin8 a share of that employerfs pension Iklbilities. Page 70

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 26 PEN510145 ltorttinuedl C Church Worker5 Pension Fund ICWPFI Pension Builder Classlc Since I" October 2012 ihe CDBF has participated in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pension5 Board. which holds the assets of the schemes separately from those of the Employer and the other participating employers. The Church Worker5 Pension Fund has a settion known as the Defined Benefits kheme. a deferred annuity section known a5 Pensior7 8uilder Class*c and a cash balance section known as Pension Builder 2014. Pension Builder Stheme Both sections of the Pension Builder Scherne are dassed as defI￿d benefit schemes. Pension 8ullder Clossic provides a pension. accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board froffl time to time. Discretionary increases may also be added. depending on ir7vestment returns and other factor5. Pension 8uilder2014 is a cash ba13nce scheme that provides a lump sum which members use to providè benefits at retirement. Pension contributions are recorded in an account for each member. Discretionarv bonuses may be added before retirement, depending on investment return5 and other factors. The account, plus any bonuses declare(l is payable, unreduced. from age 65. There is no sub-division of asset5 between employers in each section of the Pension 8u41der Scherne. The scheme is considered to be a multi-employer scheffle as described in Section 28 of FRS 102. This is because It is noi possible to attribute the Pension Builder kheme's assets and liabilities to specific employers and means that contributions are accounted for a5 if the Scheme were a defined contribution scheme. The pension5 losts charged to the SOFA in the year are the contributions payable12022.. £333.017. 2021-. £222.1331. A valuation of the Pension Builder Scheme is carried out once every three years. The m05t recent v8luatlon was carried out as at 31 December 2019. The next valuation is due a5 at 31 Oecembei 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8rn on the ongoing assumptior15 used. At the most recent annual review. the Board chose to grant a discretionary bonus 013% following improvements in the luntling position over 2021_ There is no requirement for deficit payments at the current time. For the Pension Builder 2014 settion. the valuation revealed a surplus of E5_5m on the ongoing a55umption5 used. There is no reouirement for deficit payment5 at the tuftent time. The le8al structure of rhe scherne is such that if another employer fails. the CDBF could become responsible for paying a share of the failed employer's pension liabilities. Page 71

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTE5 TO THE FINANCIAL STATEMENTS (continued) For the year ended 310ecember 2022 26. PENSIONS Icontlnued) D. Teachers. Pension Schemè ITPS) The Diocese participate5 in the Teachers. Pension Scheme l-the rps") for a number of its staff. The pension charge for the year includes contributions payable to the TPS of £93.46212021.. £68.4501 and at the year-end £Nil12020- £Nill wa5 accru￿ in respect of contributions to this scheme. The TPS 15 an unfvnded rnultirnployer defined benefits pension scheme governed by The Teachers, Pensions ReBulations 2010 las amended) and The Teachers. Pension Scheme Re8ulations 2014 las amended). Members contribute on a -pay as you go- basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Padiament. The employer contribution rate is set by the Secretary of State folk)wing scheme valuations undertaken by the Government Attuarfs Department. The m05t recent actuariol val¢Jation of the TPS was prepared as at 31 Mar¢h 2016 and the Valuation Report. which was published in March 2019, confirmed that the employer contribution rate lor the TPS would inC￿3$e from 16.4% to 23.6% frorn I September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%. The 31 March 2016 Valuation Report was prepared in accordance WFth the benefits set out in the scheme regulations and under the approa¢h Specified In the Directions. as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the 'McCloud/Sargeant case.. This case has required the ctsurt5 to consider cases regarding the implementation of the 2015 reforms to Public Sernice Pènsions includin8 the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government pemiission to appeal the Court of Appeal'5 judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The governrnent is respecting the Court's decision and has said it will engage ful￿ with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 thar it intends to proceed wilh a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their seryice during the period between l April 2015 and 31 March 2022 at the point they become payable. The TPS is subject to a cost cap mechanism whith was put in place to Protett taxpayers against unforeseen changes in scheme ¢05ts. The Chief Secretary to the Treasury. having in 2018 announced that there would be a revlew of this cost cap mechanism. in January 2019 announced a pause to the cost tap mechanisrn following the Court of Appeal's rulin8 in the McCloud15argeant case and until there is certainty about the valtje of pensions to employees frorn April 2015 onwards. The pause was lifted in luty 2020, and a consultation was13unched on 24 June on proposed changes to the cost control mechanism following a rewew by the Government Actuary. Following a public con5ultstion, the Government have accepted three key proposals recommended by the Government A¢tuary, and are aiming to implement these changes in time for the 2020 valuations. In view of the above rulings and decisions the assumptions used in the 31 March 2016 Attuarial Valuation may become inappropriate. In this sten3rio, a valuation prepared in accordance with revised benefits and suitabty rewsed as5UrnPtions would yield differeni resuks than those contairbed in the Actuarial Valuation. Until the c05t cap mechanism ￿Ms1On is completed it is not POS5ible to conclude on any financial impact or future changes to the contribution rates of the TPS. AccordinBly no provision for any additional past benefrt pension cost5 is included in these financi statements. Page 72

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 27. PRIOR YEAR STATEMENT OF FINANCIAL ACtivmES Unrestrirted Fund5 Restricted Endowment Total FurN15 Total Funds General Ot5tgnated Funds Funds 2021 2020 Note £'l Income a￿1 endowments from Donation5 Parish share Other donations Chaiitable activrties Other activities 13.024 282 13.024 1,3S3 817 696 1,928 54 17.872 13.120 1.575 811 3b 1.021 109 io 1237 487 1,717 121 17031 Investments Other 691 53 53 15.392 2377 Expenditure on Ra151ng Fund5 Charitable activth.es 87 15,191 15,278 99 186 17,742 17,928 159 143 143 2279 2.378 129 129 17.548 17,707 Net lncomellexwditu￿I before investment gainslllossesl 114 1 931 1761 1 561 124 Unrealised gains on investments IS Realised gains on investment5 Net Bains/l10$5esl on imiestments 12 74 2,261 1721 2,189 2.993 5.340 1 3.4171 1671 520 5,273 1 3.9371 12 74 2.998 Net Incomellexpenditurel 126 1 191 2,188 2.922 5,217 1 3.8131 Tran51er between funds 13 50 1981 1 201 Other re(￿lsed gainslllossesl Gains/llosses1 on revaluation of fixed a55et5 Net movement In funds 14 571 59 2.149 24.605 27.507 25,235 1.140 30,452 1 2.6731 194 602 Total funds brou8ht forward 5.738 6.674 I9￿74 250, 283,276 285.949 Total funds Carrled forward 19 5.932 7.276 22.023 278.497 313,728 283.276 Page 73

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 28a. PRIOR YEAR NOTES TO ACCOUNTS- 3 DONATIONS Par15h Share Unrestricted Funds General Dtsknated Restrirted Endownnt Total Funds Total Funds Funds Funds 2021 2020 Current Year pledges Shortfall in contributions 13.176 1951 12.981 13.176 1951 12.981 14.010 9781 13.032 Receipts for previous yèar Total Income 43 43 13.024 13.024 13,120 Current year parish share receipts represent 92.7% of the total pledges12020- 98.7%), or. when receipts for previous years are includeil. 93.6% tsf the total pled8e512019- 99.7%). The principal cause of the reduction seen was the impact parishes ol the coronavirus pandemic. Other Donation5 UnreMrlcted Fw#15 Restrftted Endtrmrf Totsi FU￿ Total Funds Funds Fund5 zozi 2020 Ge￿ra1 Designated £'LMJO All Churche5Trust Grani 123 87 50 173 172 Archbishop5 Council RME &l¢¢k Grant Grantsfrom other 499 586 709 505 505 organisations OonioThs 33 35 103 39 15 23 282 1.021 1.353 1.575 Page 74

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 28b. PRIOR YEAR NOTE5 TO ACCOUPI15- 4 CHARITABLE ACTtvrTIES Unrestrirted Fund5 General Designated Restrirted Ertdowment Total Funds Total Funds Funds Funds 2021 2020 SiaiLrtory fees for parochial services Church Commissioners. guaranteed annuities Parish trust Income Generated Income Chuich Schools Training & other 627 627 li iio 27 ioi ioi 14 14 67 67 817 195 109 811 28c. PRIOR YEAR NOTE5TO ACCOUNTS- 5 OTHER ACTIVITIES Unre5trthd Funds GeneTrl Dewated Restrltted Endowment Total Funds Total Funds Funds Funds 2021 2021 £'o Rents receivable - Properties io io 696 696 487 487 28d. PRIOR YEAR NOTES TO Accourirs- 6 INVESYMENT INCOME Unreslrirted Funds General Deslgnated Restr*tsd Endowment Total Funds Total Funds Funds Fund5 2021 2020 £.￿0 Dividends receivable & interest receivable Rents receivable- Glebe 691 869 1.560 368 1,928 1,467 250 1,717 691 1.237 Page 75

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) Forthe year ended 31 December 2022 28e. PRIOR YEAR NOTES TO ACCOUP4TS-7 OTHER INCOMING RESOURCES Unrestthted Fvn(ts General Designated Re#rKted Endowment Total Funds Total Funds Funds Funds 2021 2020 Other income Gainl (Lossl on sale of property 53 53 115 53 54 121 28f. PRIOR YEAR NOTESTO ACCOUNTS-8 FUND IIAISING COSTS UnrÈ5trirted Fund5 General Designated RestrKtsd Endowment Total Funds Total Funds Funds Funds 2021 2020 Investment Manager fees Glebe repairs & improvements 79 76 155 143 23 31 186 16 159 87 281. PRIOR YEAR NOTES TO ACCOUNTS- g CHARITABLE AcrivrnES Unrestrlcted Funds General Designated Restrlrted Endowment Totsl Funds Total Funds Futhds Funds 2021 2020 Contrlbutlons to Archblshops. Coundl Trainin8 for Ministry National Church Responsibilities Grants and Provisions Mission agency pension costs Retired clergy housin8 costs Pooling of ordinands maintenance grant5 632 632 632 441 441 54 28 232 475 53 23 227 28 232 121 1.266 1.266 1,328 Page 76

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 28g. PRIOR YEAR NOTES TO ACCOUNTS-9 CHARITABLE KTIVITIES (continued) Utyestrkted Funds General Desi8nated RestrKted Endo¥nneftt Total Funds Total Funds Funds Funds 2021 2020 Re50urcin8 Min•5try and Mlssion- Parish Mlnlstry Stipends and National Insuran£e Pension contribution5 Defined benefit pension scherre rnovernent15ee Note 261 Housing costs Mission Fund grants Rernoval. resett￿rn￿t & 8rarts aer8y welfare Ministry Support 6.345 2,055 29 13 650 io 118 7.034 2,189 7.390 1,710 20 1.744 20 1 2,129 67 294 124 253 12,110 351 2,240 122 235 149 23 67 362 124 243 10.695 225 132 1,154 129 12.036 Ordination Training Adult Education Children and yoyth work Ap05tolic Life Common Good Safeguarding Diocesan Adviwry Committee Pastoral and Redundant Churches uses Redundant churches Communications Mission prctrjects ISDFI Chancellor & Registrar Grant5 395 iio 98 176 507 902 iii i( 214 1.140 85 ioi 174 li 27 io 437 78 437 78 319 78 59 201 92 59 201 92 515 98 132 92 120 81 219 2,599 515 98 67 1.819 66 1.124 133 2,954 li Support and Governance for parish ministry Inote 101 625 625 3.579 694 3,293 li 1,124 Page 77

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continuedl For the year ended 31 December 2022 288. PRIOR YEAR NOTES TO ACCOUNTS- 9 CHAR ￿ASLE ACTIVITIES Icontlnuedl Resourch)g MSnlstryand Mlsslon- chU￿h Schoo15 Church Schools department Support and Governance for Churth Schools (note 101 706 81 786 81 7B7 891 Total Charftable actl¥ltle5 15.191 143 2.279 129 17,742 17.548 28h. PRIOR YEAR NOTES TO ACCOUNT5- 10 ANALYSIS OF SLIPPORT AND GOVERNANCE COSTS Resourdng mlnlstry and mis￿on support for Mlnistry Edutation thurth Total Funds Total Funds Schools 2021 2020 Support Central services department General office department Finance department IT department Depreciation 79 198 io 25 22 89 223 178 231 202 129 17 146 115 78 682 760 Governance External Audit 21 625 24 706 22 782 81 Page 78

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022 281. PRIOR YEAR NOTESTO Accouiifs- 11 AMALY515 OF GRANTS MADE Total Funds Totsl Funds 2021 2020 Indi¥iduals Instltutlons Nwnber From unrestrfcted fundsfor natlonal church responsibilities: Contributions to Archbi5hops' Counr 1,266 1,266 1,328 From unrestricted The Chichester Diocesan A559¢iation for Family Support Work To6ether in Sussex St 8artz Trust - Youth work Clergy Training Clergy Moves Other organisatons 36 36 36 19 28 30 294 113 294 234 143 324 37 361 301 From dey8nated PCC5 for Mission projects The Chtchester Diocesan Association for Family Support Work Other Or8anisations for Mission projects Individua15 for Mission projects 67 67 90 15 16 67 67 122 From restiicted PCCS lor Mission projects Clergy and f3milie5 for Wellare Overseas mission agencies Aided Schools Ordinands in trainin8 AD Care of Churches Other organisaions 13 iio 477 477 43 15 240 62 43 15 69 511 53 332 332 178 375 493 891 Totals 336 699 1863 2562 2642 Page 79

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE (INCORPORATED) NOTES TO THE FINANCIAL STATEMENtS (continued) For the year ended 31 December 2022 29. POST BALANCE SHEET EVENTS The cost of living crisis and high rate of inflation 15 continuing to have a Significant impact. Volatility caused by this crisis. and other Wodd events, is likely to continue to have an impact on the value of investment asset5. along with property values and Pension Fund deficits. While the ultimate extent of these i55ue5 IS currently still unknown, there have been no event or series of everbts Since the year end which have had a material impact on values at the balance sheet date. Trustees will continue to monitor the changing operational landscape and impact on assets and related income. 30. RELATED PARTY TRANSAcfioNS Chur¢h of England related parties include". the Ar¢hbi5hops' Council (Charity No 1074B571. from which the CDBF rece￿￿% grant5 and to which the CDBF pays a donation based on an apporrionment system for funding national training of ordinands and the activiiies of the various nation31 boards and councils, including General Synod. the Church Commissioners for ErTgland (Charity No 114W971, from which the CD8F receives grants and which act5 on behalf of clergy Wtth HM Revenue and Customs. The CDBF pays for clergy stipends through the Church Commissioner5 the Church of England Pensions Board Icharity No 2366271. to which the CDBF pays retirement benefit contributions for stipendiary clergy and employees and makes contributions towards the provision of housing for cler8y in retirement The Mother Agnes Trust 15 an unincorporated charity of which The Right Revd Dr M Warner. the Ven E Dowler. Mrs S 5tonor and Gabrielle Hi88ins, Diocesan Sec￿tary of the CD8F. are trustees. Between 2(M)4 and 2017 Chichester DBF paid the running expense5 of the Magnet Centre in Ha5tin8s on behalf of the Mother Agnes Trust. The Magnet Centre transferred into new ownership in 2017. The total amount expended by CDBF on behalf of the Mother Agnes Trust as at 31 Oecember 2020 in respett of the Magnet Centre is £375,841. In addition, the 08F paid the salary of the Clerk to the Trustees of the Mother Agnes Trust on behalf of the Trusi until 31 January 2019. A5 at 31 December 2020 the amount expended bv ichester DBF in respect of staff costs was £35,304. Chichester D8F has invoiced these sums and the Staff costs were repaid in 2022. Ouring 2021 Chichester DBF provided a loan facility to Mother Agnes Trust for £25,000 to enable them to meet a number of costs prior to the sale of land owned by the Trust. At 31° December 2021 £10.OCYJ had been drawn against thi5 facility, and £10,000 was repaid in 2022. The Chichester Diocesan Association for Family Support Work is an unincorporated charity of which Mr% Lesley Lynn ha5 been a trustee for part of the year. The DI0￿Se makes an annual Brant of £36.000 towards the work of this charity- The only related corporaie party with whom the D8F ha5 transacted is the Diocese of Chichester Academv Trust I'DCAT'I which manages Èleven Church of England Schools in the Diocese. DCAT is accountable to the Diocese Board of Education I'DBE'I and the Bishop of Chid)ester in relation to their Christian distinctivene55 and to the Diocese of Chichester Education Trust I'OoCEfi via rnembers for its operation. The Director of Educalion, one of the DBF'S key management personnel. is a trustee of DCAT, and the Archdeacon of Chichester is its Chair. During the year the OBF performed due diligence on schools intending to convert or join the Trust. Page 80

THE CHICHESTER DIOCESAN FUND AND BOARD OF FINANCE IINCORPORATED) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 20Z2 31. FUNDS HELD AS CUSTODIAN TRUSTEE The CD8F acts as Diocesan Authority or Custodian Trustee for many trust fund5 by virtue of the Parochial Church Councils IPowersl Measure 1956 and the Incumbents and Churchwardens ttrustsl Measure 1964 where the managing trustees are Parochial Church Councils and others. Assets held in thi5 way are not aggregated in these financial statements as the CDBF does not conird them. The fnancial assets held in this way may be summarised as follows: 2022 2021 CBF Church of England Investment Fund income sha￿5 CBF Church of Endand Investment Fund accumulation shares CBF Church of England Fixed Interest Securities Fund shares CBF Church of England Property Fund shares CBF Church of England UK Equiry Shares CBF Church of En8land Global Equity Shares Other common investment fund holdings Direct holdings in UK equities CBF Church of En￿and Deposit Fund Cash at bank 14.491 263 1.461 16,fJ06 281 1.711 281 13 li 159 1,372 395 1.783 155 197 1,681 368 2,783 175 Total assets held as custodian trusiee 20.338 24,096 Page 81