2020-12-31-accounts

The York Diocesan Board of Finance Limited

Annual Report & Financial Statements for the year ended 31 December 2020

Company Registration Number: 225234 Charity Registration Number: 244976

THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

TABLE OF CONTENTS	Page Number
Legal Objects	3
Mission Statement	4
Strategic Report:
Strategic Aims	4
Objectives for the year	4
Activities and Achievements in the year	5
Future plans	10
Financial review	12
Principal risks and uncertainties	16
Structure and Governance	17
Trustees’ Responsibilities	20
Administrative details	22
Independent Auditor’s Report	24
Statement of Financial Activities	27
Income and Expenditure Account	28
Balance Sheet	29
Cash Flow Statement	30
Notes to the Financial Statements	31

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

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 2020.

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 directors.

This combined report satisfies the legal requirements for:

• a Directors Report of a charitable company,

• a Strategic Report under the Companies Act 2006 and

• a Trustees Annual Report under the Charities Act 2011

LEGAL OBJECTS

The Diocese of York covers an area of 2,261 square miles, from the Humber to the Tees and from the A1 to the East Coast.

The principal object of the York Diocesan Board of Finance Limited (“YDBF”) is to promote, assist and advance the work of the Church of England in the Diocese of York by acting as the financial executive of the York Diocesan Synod.

The YDBF has the following statutory responsibilities:-

• i. the management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976;

• ii. the repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972;

• iii. the management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education Measure 1991;

• iv. the custodian of permanent endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956.

The strategic priorities of the company are established by the Diocesan Synod in communication with Deanery Synods, PCCs, and the Archbishop of York (in respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the church nationally.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

STRATEGIC AIMS

The core purpose of the YDBF is to manage the assets of the Diocese so as to provide appropriate personnel, operational and financial resources to assist the Diocesan Synod, Archbishop’s Council, deaneries and parishes to further their missional and strategic priorities.

Between November 2011 and the end of 2020, the shared mission of the Diocese was been defined as, “Mutually Resourcing to build up the Body of Christ, to grow into Christ-likeness, Commitment, Partnership, Influence and Numbers.”

In seeking to be Generous Churches Making and Nurturing Disciples, the key objective has been to support individual congregations to grow both numerically and spiritually which, in turn, will secure their on-going mission and ministry for generations to come. The key areas of focus between 2016 and 2020 adopted by the Diocesan Synod have been:

• To reach those we currently don’t;

• To move to growth; and

• To achieve financial sustainability.

The strategic priorities were reviewed following the arrival of a new Archbishop of York in July 2020. The key objective was reaffirmed and the key areas of focus refreshed in the following terms:

• Becoming more like Christ

• Reaching people we currently don't

• Growing churches of missionary disciples

• Transforming our finances and structures

Alongside the strategic goals, there has continued to be a significant focus on other key areas of activity which either support them or relate to our ongoing mission as a Church of England diocese:

• Maintaining an effective Christian presence in every parish;

• Embedding Safeguarding into the DNA of our life as a diocese;

• The equipping and liberating of leadership: lay and ordained;

• A deepening of discipleship and the nurturing of lay and ordained vocations;

• Promoting and support the work of our Church schools as well as providing support to clergy and others who are working in Community schools;

• Engaging in local debate and ensuring that Christian voices are heard in all areas of public life;

• Responding to areas of social need within our communities, working with other organisations to deliver a positive contribution to the wellbeing of the most vulnerable in our society.

The directors of the YDBF are aware of the Charity Commission’s guidance on public benefit and have had regard to it in their administration of the Board. The YDBF believes that, by promoting the work of the Church of England in the Diocese of York, it helps to promote the whole mission of the Church (pastoral, evangelistic, social and ecumenical) more effectively, both in the diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by providing facilities for public worship, pastoral care and spiritual, moral and intellectual development, both for its members and for anyone who wishes to benefit from what the Church offers; and promoting Christian values and service by members of the Church in and to their communities, to the benefit of individuals and society as a whole.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

ACTIVITIES AND ACHIEVEMENTS IN THE YEAR

Two events had significant impact on the diocese of York during 2020 – the appointment and arrival of the Rt Revd Stephen Cottrell as 98th Archbishop of York, following the retirement of the Rt Revd Dr John Sentamu in June, and the Coronavirus Pandemic.

New Archbishop

The Diocese welcomed the new Archbishop in July. Due to the national restrictions the legal ceremonies were carried out via Video Conferencing (which was a historic first). New instruments of delegation were issued to the suffragan bishops, giving each of them wider authority within a specific archdeaconry and the Diocesan Leadership Team (YDLT) was restructured. The YDLT has worked with the new Archbishop on “Living Christ’s Story” a refreshed vision for the diocese, which was adopted by the Diocesan Synod in February 2021.

Coronavirus Pandemic

This has had a very significant effect on every aspect of diocesan life. The life of the diocese is primarily expressed through the ministry undertaken in the parishes and this has been hugely impacted by the restrictions placed on services such as weddings and funerals, the need to reduce capacity for inperson services and the closure of Church buildings for public worship (both mandatory closures and, latterly, the closure based on public health advice).

Alongside a move to home based working for DBF Staff, support has been provided to all the parishes throughout the year. In the light of initial predictions of mortality, contingency plans were drawn up to be able to support very high demand for funerals. These have not been necessary, but many congregations have been at the heart of the local support provided in their communities including, for example, providing practical assistance for those unable to leave their homes and running foodbanks.

The DBF received support from the Government’s Coronavirus Job Retention Scheme (CJRS) and up to 50% of staff were furloughed during the “first wave”. A core staff continued to support clergy, PCCs and schools throughout the lockdowns. The Trustees are grateful for the flexibility shown by those employed by the DBF throughout the year.

Financially, the impact of the pandemic has been mitigated through access to the CJRS, reduced expenditure resulting from a curtailing of activities (particularly property repairs and maintenance) and continued parochial contributions to the Common Fund via Free Will Offers, often through use of PCC reserves to honour pledges made. Looking forward, some of the in-year savings will result in deferred expenditure and engagement with PCCs indicates that many will need to reduce their level of Free Will Offer for 2021. It will be against this backdrop that the Leadership Team will consult with the deaneries and parishes about the future resourcing of ministry to support the diocesan vision.

Resourcing Parochial Ministry

As well as engaging in a wide variety of community and church projects, our licensed ministers usually carry out approximately 1,100 weddings, 3,700 funerals and 3,300 baptisms each year (2019 figures). During the pandemic the number of weddings and baptisms were reduced in 2020 (final numbers not yet submitted) but funeral ministry continued throughout the lockdowns even when church buildings were closed. While the YDBF is responsible for funding of clergy stipend costs, the national clergy payroll is administered by the Archbishops’ Council, a charity which the YDBF reimburses regularly for the costs of stipendiary clergy deployed in the Diocese. Caring for the stipendiary parish based clergy (181 at 31 March 2021 with 33 vacancies) is a priority of the YDBF and represents by far its largest financial commitment. Although the YDBF does not employ the parish clergy, it is responsible for training them, paying and housing them, and paying into their pension fund. In addition to the

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

stipendiary clergy, there are about 80 self-supporting licenced clergy and a further 300, the majority of whom are retired, who hold the Archbishop’s Permission to officiate and enable us to offer both Sunday worship and occasional offices across over 580 churches.

For many, the clergy house represents the domestic heart of the parish, serving not only as a home but also as a base for ministry. The YDBF recognises the importance of a safe, secure and well maintained house and strives to continue with this work as well as carrying out programmed refurbishments and improvements, as available money allows.

Over the year the average vacancy rate was approximately 19%. During all interregnums the Area Deans worked closely with the churchwardens of the relevant parishes and ensured that scheduled services continued and, with very few exceptions, other activities within the community continued uninterrupted. This was largely made possible by the retired and self-supporting ministers in the diocese together with the Readers and huge numbers of lay volunteers.

Embedding Safeguarding into the DNA of our life as a diocese.

The work in this area continues to be overseen by the Strategic Safeguarding Group (SSG), independently chaired by Professor Sue Proctor, and including representatives of local authorities, North Yorkshire Police, and the Roman Catholic Diocese of Middlesbrough. The SSG is supported by an Operational Group that brings together key staff within the diocese and York Minster who are involved in Safeguarding, working with young people and vulnerable adults and the training of our clergy and lay leaders.

During 2020 the team has continued to expand with the appointment of a part-time Safeguarding Trainer, to meet the demand for training and support the roll out of the Church of England Safeguarding Learning & Development Framework, together with additional part-time administrative support. The Safeguarding Advisors continued to experience high levels of activity, with further external scrutiny of the handling of Safeguarding issues in the Church of England and the implementation of further changes in the House of Bishops Safeguarding guidelines, post IICSA, to which all dioceses must legally have due regard.

As reported last year, York was one of a sample of four dioceses selected by the Independent Inquiry into Child Sexual Abuse (IICSA) in 2019 to examine current Safeguarding practice as part of their review of the Church of England. An expert reviewer examined a number of case files, a number of witness statements were submitted in relation to selected case studies, and the Diocesan Safeguarding Adviser and the Archbishop of York were asked to appear to answer questions from the inquiry panel. The report published in October 2020 contained a number of recommendations for the whole Church of England. The Strategic Safeguarding Group and DSA have considered the report and used it to shape priorities for the team, including greater involvement from survivors. Whilst there is learning for this and every diocese, a number of positive references to the current practice in York were made in the published report.

One of the commitments made by the Church of England to IICSA was to review the files of all licenced ministers and parish officers to ensure that there are no outstanding Safeguarding issues relating to work with children young people or vulnerable adults that were not picked up by the 2010 review (which had a narrower remit). This review (PCR2) of over 1800 files has required significant resourcing, both in terms of staff time and the funding of a team of external reviewers. It is currently scheduled to be completed by mid-2021 and is being overseen by a panel chaired by a representative of one of our statutory partners.

In addition to supporting national work streams and core groups, providing advice and support to parishes, and managing a casework load, a significant amount of resource was committed to providing training to licensed and authorised ministers, church officers and members. During the lockdowns all

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

of the face to face training had to be reworked to enable it to be delivered online but, despite the challenges this presented to both trainers and attendees, in the course of 2020, 253 individuals attended the new mandatory two session Safeguarding Leadership training for licensed and authorised ministers, with a further 131 attending the specialist Domestic Abuse and Safer Recruiting training modules. The national frameworks changed in the course of the year in an attempt to embed learning rather than simply delivering taught sessions – one consequence of moving to what is felt to be a more effective learning approach has been a reduction in cohort sizes making it more resource intensive.

The new foundation and basic e-learning courses were completed by over 675 individuals.

It is anticipated that workloads will continue to increase as more work is undertaken in responding to the voice of survivors over the coming year. Additionally, the Diocesan Safeguarding Adviser (DSA) and the Diocesan Secretary have been invited to contribute to the ongoing revision of a number of national policies and procedures during 2021.

Working with Children & Young People in Schools and Parishes

The Education and Children and Youth team has operated at full strength during 2020. Some staff were placed on periods of furlough during the year due to the pandemic but a full service was provided at all times to churches and schools.

Much of our work with Children, Youth and Schools focused on making tangible links between homes, schools and churches aligned with the strategic vision of the Diocesan Board of Education and with national work set out within Growing Faith and Everyday Faith. Due to the pandemic, parish and schools work in 2020 focused primarily on resourcing schools and churches to provide support for the household as gathering in schools and churches was not possible - examples included Easter@Home, Pentecost@Home, Holiday Club@Home, Advent@Home and a Church trail to explore Christmas. Over 2000 Family Calendars were distributed across the diocese and the Journey through the Bible resources were created for both schools and churches to support families at home and linked to school Collective Worship.

As for schools, all 125 Church schools bought into the Service Level Agreement provided by the education team that has brought an even closer working relationship with schools to help them develop their Christian vision as well as increased income into the diocese. The pastoral support given to school leaders during the pandemic was a major part our work during 2020 in addition to wider Church school development priorities.

At the beginning of 2020 there were ten Multi Academy Trusts (MATs) across the diocese, all of which were mixed MATs with Church and community schools working in partnership together. Two primary schools converted to academy status in 2020 but it would appear that there is limited interest from Governing Bodies in conversion at the current time. There are plans in place for two Church primary schools that received an inadequate Ofsted judgement to be sponsored by one of the existing MATs over the course of 2021.

The diocese continues to be held accountable to the Department for Education and other statutory bodies, such as Ofsted, for the progress and achievement in all curriculum areas in Church schools, not only with respect to religious education, collective worship and the Christian vision of Church schools. Therefore, it is pleasing that Church schools and academies across the diocese continued to perform well over 2020 although no Ofsted or SIAMs inspections were undertaken in the March – December period due the pandemic. By the year end, 109 (87%) of the diocese’s schools and academies were rated ‘Good’ or ‘Outstanding’ by Ofsted and under the statutory system for denominational inspection (SIAMS), 98% of our schools were rated ‘Good’ or ‘Outstanding/ Excellent’.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

For the year ended 31 December 2020

ANNUAL REPORT

Nurturing of lay and ordained discipleship, vocations and equipping and liberating leadership.

We continue to invest in nurturing vocations in the Diocese, with 9 new ordinands entering training in September 2020; a number of these are under 32 and there is a good gender-balance. Furthermore, 3 candidates attended Bishops’ Advisory Panels (BAPs) in the 2020/21 selection year, with another 14 due to go to BAPs in the coming months, and we continue to have a number of other candidates in the discernment pipeline. In support of those engaged in diaconal ministry we hosted a successful online day conference for deacons attracting delegates from across the country.

The diocese has continued to invest in training for both lay and ordained leaders. The York School of Ministry (YSOM), based at the Diocesan Office but with hubs in Middlesbrough and Beverley, provides higher education accredited training, validated by Durham University, for Readers, licensed and recognised lay ministers, ordinands and curates and those in discernment for a wide range of ministries, within and beyond the church. It also works in partnership with St Hild’s College to support ordination training by contributing to the Yorkshire Theological Education Partnership. In addition it offers a number of introductory courses aimed at a wider audience, including, for example, Children’s and Youth workers, Churchwardens and church administrators and regularly runs the Recognised Parish Assistant training programme in a number of locations around the diocese.

During the last year YSOM has successfully migrated all it learning and teaching onto online platforms, with excellent feedback from the students and were able to welcome 140 students during 2020- 2021.

The programme of continuing ministerial education for Readers and clergy was limited by the Covid restrictions but, where possible, online events have been offered and plans are in place to resume in person events during 2021.

Our Retreat House, Wydale Hall, was closed for much of the year due to government restrictions affecting hospitality venues. We were grateful to receive some very generous donations to support the ongoing costs as well as the prayerful support of the extended community of volunteers who have met regularly online via Zoom and offered their practical skills when it has been possible to have visitors on site.

“Becoming, Reaching, Growing, Transforming” – The Strategic Plan for Growth;

Further work to develop supporting areas of activity (e.g. Parish Support; Training & Vocations; Safeguarding; Children, Youth & Education) have continued and have been referred to elsewhere in this report. Our aim is that the activities of the Board enable the Trustees to support the parishes in realising a shared purpose of Living Christ’s Story .

Coordinated by the Transformation and Strategy Programme Manager, and reporting to the Archbishop’s Staff, Council and the YDBF, work continued on delivery of the areas of activity within the previous strategic 5-10 year plan. Key areas of activity within the strategic projects activity during the last year, reflecting the previous “reach grow, sustain” focus, have included:

MULTIPLY - New Worshipping Communities for 20s-40s

The final appointments to Bridlington and Hull were made during 2020. At the time of the last report the trustees were anticipating that those appointed in the latter months of 2019 would be moving from the planning phase to the launch of new worshipping communities. Unfortunately, and particularly for those who were due to launch at around the time of the first lockdown, the national restrictions necessitated significant change in expectations and plans.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Some of the embryonic groups have used digital technology to meet and have seen growth in their virtual communities, but in other cases the team have engaged more broadly in the parishes – seeking out opportunities to serve and to support the existing church community to adapt to new ways of sharing together.

Five of the core locations are in places of social and economic deprivation, including Brambles Farm in Middlesbrough where, in partnership with the Church Army, the Multiply Leader has been building on work undertaken in recent years by Middlesbrough Deanery and has re-established a regular church service on the estate for the first time since the demolition of the St Thomas building in 2007.

Multiply is also seeking to support the engagement of locally employed lay people via its seedcorn Growth Fund. Despite lockdown, 3 further grants were awarded during the year, and the initial 5 projects are underway.

MUSTARD SEED – Growing disciples in places where life is tough

Following the appointment of Heather Black as Programme Leader in February 2020, the first two Stepping Up programmes – helping lay people grow as disciples of Jesus and in their confidence and ability to share their faith within their local community – began (within the Covid Secure guidance) in Hull and Middlesbrough in the second half of the year. The third programme in Middlesbrough was delayed due to the Coronavirus restrictions.

The initial appointment and some development costs are being funded through the designation of the annual All Churches Trust (ATL) grants for 2019, 2020 and 2021. Following the successful bid to the Church of England Strategic Investment Board for funding for the Multiply programme, a further award of £1.35m was granted in June 2020 to fund the additional capacity to roll the Mustard Seed programme out to further urban areas of high economic deprivation to enable local parishes to be more effective in their Christian witness and service as they seek to meet the often complex needs of their local communities. This will also enable delivery of the second phase which will provide additional focused support for those within each Stepping Up cohort who have the necessary gifts and calling to establish new worshipping communities in their home locations.

Two half time associate programme leader appointments, based in the East Riding, were made in the autumn and the final associate programme leader, based in Middlesbrough, started in March 2021.

Serving areas of social need within our communities and working with other organisations to deliver a positive contribution to the wellbeing of the most vulnerable in our society.

Whilst the strategic goals are focussing on the spiritual wellbeing of individuals in our most deprived communities, churches across the diocese have continued their wider involvement in each of their communities, often joining with other denominations to resource Foodbanks and support charities working with the poorest in our society. We have continued to take an active role during 2020 in supporting a number of projects including Together Middlesbrough & Cleveland, a joint venture between the diocese and the Church Urban Fund, Westway Open Arms (Scarborough) which serves the Eastfield Estate in Scarborough, and St Margaret’s Welcome Centre (Longhill Estate, Hull).

The Bishop of Hull’s Working Group will continue to develop plans to ensure that the needs of the poorest in our communities are at the forefront of our thinking as a diocese and will continue to look for ways of providing practical support for those who live and work in the areas of greatest social and economic deprivation in the diocese.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

GENEROUS GIVING – supporting local financial sustainability

The Generous Giving Team, funded through the Church Commissioners’ Restructuring Grant, had its second full year of operation during 2020.

The remit for the Advisors is to support parish level financial sustainability which is seen as a priority for the diocese in order to create the capacity needed to enable parishes to increase the level of contributions that they make to the Common Fund (www.parishgivingscheme.org.uk/).

FUTURE PLANS

The key areas of immediate focus in 2021 will be supporting parishes and communities as they recover from the impact of the Coronavirus Pandemic and the consultation with deaneries and parishes in the light of the restatement of diocesan priorities. This follows the review of the vision and strategy carried out by the Archbishop and YDLT during the second half of 2020.

In addition to addressing the challenges of falling attendance, via the targeted interventions noted above, the strategic priorities include restructuring the resourcing of ministry at both parish and diocesan level to enable us to create a credible and robust financial plan to respond to the reduction in Church Commissioners’ direct support for poorer dioceses from 2017 onwards. By 2026 the annual grant will be reduced by circa £1m per annum (at 2016 value) compared to the £2.2m received in 2016.

Financial modelling has been undertaken to support this major consultation on how to resource mission and ministry so as to increase the pool of volunteer ministers, encourage missionary discipleship and enable churches to grow within a broader mixed ecology which builds, for example, on the experience of on-line worship and the work of chaplaincies during the lockdown. The resulting plan will also need to achieve a reduction in the number of remunerated posts and/or, through an increase in the donor base, provide additional income in order to offset the reduction in the Church Commissioners grant and the reduction in real terms in parochial contributions to the Common Fund.

The consultations, which will include the creation of new Deanery Resourcing plans, are scheduled to continue throughout 2021. It is anticipated that changes arising from the consultations would be implemented over the following 2-3 years and that the expenditure will need to be supported by the use of reserves (including the realisation of surplus property) until the transition to a new resourcing structure is complete.

OTHER RELATED PARTIES

Although not all are related parties under accounting regulations, there are a number of bodies that the YDBF works closely with), these include:

• The Archbishops’ Council to which the YDBF pays a donation based on an apportionment system for funding national training of ordinands and the activities of the various national boards and councils, as well as General Synod. The Archbishop’s Council allocate funding to dioceses from the Church Commissioners under legislation and regulations established by the General Synod of the Church of England.

• The Church Commissioners from which the YDBF receives grants and which acts on behalf of clergy with HM Revenue and Customs. The YDBF pays for clergy stipends through the Church Commissioners.

• The Church of England Pensions Board, to which the YDBF pays retirement benefit contributions for stipendiary clergy and employees. It also offers schemes to provide housing for clergy in retirement.

• Diocese of York Educational Trust, which acts as a member of Academy Trusts and Multi-

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Academy trusts on behalf of the YDBF (the DBE being unincorporated). A small grant is made by the DBE to support governance costs and the Trustees work closely with members of the DBE and the education team to support the Church of England Academies in the diocese.

• DBE Services, of which the YDBF is a member, provides services to Church Schools. Any profits are returned to the member dioceses via charitable donations and are designated by the trustees to support the work of the education team.

Transactions with the main categories of related parties are identified in appropriate places throughout the financial statements. Where materiality of the transactions merits more detailed disclosure this is given in notes 27 and 28 to the financial statements.

Volunteers

YDBF is dependent on the huge number of people involved in church activities both locally and at diocesan level. We believe that the number of active volunteers (or volunteer hours) given to the mission and ministry of the church is a key indicator of the health of a church. The service provided to a community through church volunteering also has a significant impact on people’s relationship to the church particularly at times of crisis. Within this context, the YDBF greatly values and would want to acknowledge the considerable time given by all the committee members across the diocese – for each of them a demonstrable outworking of some of what it means to be “Living Christ’s Story”.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

FINANCIAL REVIEW

Financial Performance

The Trustees are grateful to all the parishes which gave generously into the Common Fund of the Diocese during the year, and especially to those parishes that give by monthly instalments, which is essential in supporting the cash flow of the Diocese.

Free Will Offers, the money given by Parishes to the Diocese to fund its mission and ministry, are the main incoming resource for the Diocese. These was down on the previous year at £7,338,000 (2019: £8,098,000). Whilst current year contributions reduced by £770,000, this was 93% of the total offers pledged, which given the circumstances of the year represented a huge commitment on the part of PCCs to meet their pledges by all possible means. Our expectation is that Free Will Offers will further reduce in 2021 as parish income continues to be impacted by the effects of the pandemic and remaining reserves are held in anticipation of local spending rather than used to underwrite contributions to the Common Fund.

The overall net movement in funds in 2020 was £2,829,000 (2019: £10,642,000). The significantly higher amount in 2019 primarily related to the higher clergy pension scheme actuarial movements, and the Church Commissioners grant towards the 5 year Multiply project being accounted for in 2019 in full. Both 2020 and 2019 saw a high level of gains on the sale of land and buildings and investment gains. Such exceptional items masking a larger underlying operational shortfall.

2020 General Designated Total £000 £000 £000 SOFA: Operational (shortfall)/gain (1,009) 101 (908) add back investment and property gains/transfers/exceptional items: SDF grant awarded in the year - - - Impairment of assets (115) - (115) Gain on sale of properties/closed churches (17) - (17) Clergy pension scheme deficit reduction 503 - 503 (638) 101 (537) Investment gains/(losses) 797 - 797 Transfer between funds - property (353) - (353) Transfer between funds - pension (503) - (503) (697) 101 (596) Unrestricted	Restricted £000 (391) - (230) 15 - (606) - 1,508 - 902	Endowed £000 - - (280) 568 - 288 2,887 (1,155) 503 2,523	2020 Total £000 (1,299) - (625) 566 503 (855) 3,684 - - 2,829	2019 Total £000 (839) 3,167 - 2,652 2,647
				7,627 3,015 - -
				10,642

Unrestricted fund:

The unrestricted general fund showed an excess of expenditure over income of -£537,000 before investment gains or transfers (2019: £3,154,000 surplus). However, if the gain on the sale of properties, an impairment adjustment and the year end clergy pension scheme movements are excluded, there was an operational shortfall of £908,000 (2019: £217,000) which can be split into a £1,009,000 shortfall on general funds and a £101,000 increase in designated funds (2019: £447,000 shortfall on general funds £230,000 increase on designated).

Despite the impact of the pandemic during the year, this shortfall was lower than had been budgeted, with the reduction in Freewill Offering being more than offset by lower costs. 2020 saw a higher than budgeted level of clergy vacancies together with lower housing and other costs as the Diocese was impacted by the closure of the office, lockdowns, lower travel costs and an emphasis on cost reduction. The Diocese also took advantage of the National furlough scheme where possible receiving £226,000 of salary support payments.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

A draw down from unrestricted reserves of up to £1.1 million (being £1.4 million less anticipated investment gains) was approved for 2021 by Diocesan Synod at its meeting in November 2020. This allowed for a combination of further investment in the Growth Strategy and also a continuing transitional necessity resulting from the reduction in income from the Church Commissioners and the lead time necessary to reach a corresponding uplift in Free Will Offerings. The Trustees assessed that the Diocese had adequate reserves to fund this in year shortfall. Safeguarding the future finances of the Diocese is a key part of the on-going strategic consultations and achieving sustainable parish giving will continue to be a vital factor in the Diocese’s financial security in the future.

Designated funds:

A further £110,000 (2019:£230,000) of funds were designated as at the year end towards the Mustard Seed Project (balance of the Allchurches Trust grant not already spent on that project in the year).

Restricted funds:

Restricted funds showed an excess of expenditure over income of -£606,000 before investment gains or transfers (2019: £3,303,000 surplus). Income in 2019 included a grant of £3,167,000 from the Church Commissioners towards the costs of the Multiply programme which is being drawn down from them as necessary to cover costs over the 5 years from 2019.

Endowed funds:

Endowed funds showed an excess of income over expenditure of £288,000 before non property related investment gains or transfers (2019: £1,170,000 surplus). This related to gains arising following the sale of various properties.

The excess of expenditure over income across all funds amounted to -£855,000 compared with £7,627,000 surplus in 2019.

Fixed Asset investments are included on the balance sheet at year end valuation. The impact of net unrealised and realised investment gains for the year of £3,684,000 (2019: £3,015,000 gain) increased the net total income for the year to £2,829,000 compared with an overall increase in funds of £10,642,000 in 2019. Out of this net income various transfers were made between funds, as detailed in note 13.

Significant Property Transactions

No land and buildings were purchased during the year compared to £2,103,000 in 2019; this related to the purchase of a new parsonage house and a further 7 houses for the Multiply (20s-40s) ministers as part of the strategy for growth.

During the year the Diocese disposed of former clergy housing with a total book value of £824,000 realising net sales proceeds of £1,453,000 and a gain on sale of £629,000.

Glebe land, which is included within investments, was disposed of for £1.4 million, representing a gain on sale of £1.3million. This gain principally resulted from the sale of a single small plot of grazing land with planning permission to a developer.

Diocesan policy continues to be:

• to replace unsuitable properties;

• to accommodate the changing geographical deployment of clergy within the Diocese;

• to realise development potential in some properties, thereby using our resources more effectively for the ministry of the Church

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Balance sheet position

The Trustees consider that the balance sheet and notes demonstrate 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 the net assets at the balance sheet date totalled £103,249,000 (2019: £100,420,000) it must be noted that included in this total are properties, mostly in use for the ministry, whose value amounted to £48,723,000 (2019: £50,043,000). Much of the remainder of the assets shown in the balance sheet is held in restricted funds or as endowments, and cannot necessarily be expended for the general purposes of the YDBF.

Reserves policy

Free reserves

Having considered financial risk, liquidity requirement and the timing of cashflows throughout the year, the Trustees’ policy is to hold a balance of readily realisable assets in the general fund equivalent to 4 months budgeted unrestricted expenditure. At 31 December 2020 the amount required under this policy totalled £4.9m (2019: £5.0m). Actual free reserves as at 31 December totalled £9.0m (2019: £9.2m), which is equivalent to just over 7 months of budgeted unrestricted operating expenditure.

Whilst this level of reserves is above the minimum prudent level set by the trustees, it is considered to be currently necessary to hold them in the light of changes to the Church Commissioners’ funding for the Diocese, the budgeted operating shortfall for 2021 (which includes the third of six years’ match funding for the 20s-40s strategic investment), the decline in Free Will Offering, an anticipated need to invest additional resources in relation to Mustard Seed when external funding is exhausted and also the Diocesan wide consultation as referred to under the future plans section. The trustees are monitoring the rate at which the reserves are reducing and have plans to support the strategic initiatives via a release of fixed assets. The option to utilise Total Return legislation to release funding for future projects is kept under review by the Trustees as is the ability of the Common Fund to support the currently agreed levels of stipendiary ministry.

Reserves held as fixed assets

The general fund comprises net assets amounting to £14,002,000 of which £4,999,000 are tangible fixed assets.

Restricted and endowment funds

As set out in notes 20 to 22, YDBF holds and administers a large number of restricted and endowment funds. As at 31 December 2020 restricted funds totalled £11.2m (2019: £10.3m) and endowment funds totalled £77.7m (2019: £75.2m). Neither is available for the general purposes of the YDBF.

Going Concern

The financial statements have been prepared on a going concern basis. The Trustees have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determining that this is the appropriate basis of preparation of the financial statements and have considered a number of factors. The financial position of the YDBF, its net income for the year and cash flows as set out in the Statement of Financial Activities and Cash Flow Statement demonstrate the overall net cash position of the YDBF and the strength of its reserves. As a consequence the Trustees believe that the YDBF is well placed to manage the business risks successfully despite the uncertainties surrounding the current general economic outlook.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Even allowing for the anticipated impact of the Coronavirus, the Trustees have a reasonable expectation that the YDBF has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Grant making policy

The Memorandum of Association of the YDBF explicitly permits the YDBF to make grants in pursuance of its objects. The nature of grants made in 2020 is indicated in note 11.

Investment policy

The YDBF is empowered by its memorandum of association to invest monies not immediately required for its purposes. In addition, the YDBF acts as trustee of a number of trust funds, and these must be invested in accordance with the related trusts. The YDBF’s policy is to review regularly the assets of each fund for which it is responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Note 21 provides details of the assets of each fund, together with the related purposes, and note 15 summarises the movements in investments during the year.

The Trustees’ investment policy is to spread the YDBF’s investments between Smith & Williamson and CCLA. Smith & Williamson work on a discretionary basis and are mandated to achieve a total return of RPI plus 5% over the medium term. Within the CCLA portfolio the YDBF selects funds from the CBF range of funds for the Church of England, taking into account the objectives of each fund in the context of the YDBF’s own objectives for income and long term capital growth. The long term total return objective of the CBF Investment Fund is CPI plus 5% p.a. The CBF Property Fund aims to deliver a high income yield with capital growth over time. Both managers are required to adhere to the policies of the Church of England’s Ethical Investment Advisory Group. The investments held, and their return during the year, are set out in the following table:

CCLA Managed CBF Investment Fund CBF Property Fund CBF Deposit Fund Smith & Williamson Managed	Funds at 31 December 2020 Proportion of Portfolio Income yield in year Total Return in year £'000s 10,705 34.6% 3.0% 10.2% 1,449 4.7% 4.4% (0.48)% 568 1.8% 0.42% 0.42% 18,224 58.9% 1.6% 10.2% 30,946 100.0%

The Investment Group meets with the Investment Managers twice each year and regularly reviews the performance of the funds.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees are responsible for the identification and management of risk. To achieve this, the Trustees have engaged with the management team to consider the principal risks to which the YDBF is exposed and to prioritise a mitigation strategy. The Risk Register is regularly reviewed by the appropriate sub-committees and officers (under the oversight of the Audit Committee), to ensure that all risks are proportionally addressed in line with the YDBF's risk management policy and that all mitigating controls are operating effectively.

The highest risk areas, those that could have a significant impact on the organisation's ability to achieve its strategic aims, have been identified as being in the following areas:

1. Safeguarding - the risk that there is an occurrence of abuse (or allegation of historic abuse) by someone working for or on behalf of the Diocese. The mitigating controls are as follows:

2. The YDBF retains appropriately trained safeguarding professionals who are following clear policies and protocols aligned to National Church guidelines;

3. Compulsory training is provided to all relevant staff;

4. An independently chaired safeguarding advisory panel governs the effectiveness of YDBF practices; and

5. All parishes are required to adhere to nationally agreed House of Bishops policies and practices with support provided by the safeguarding team.

6. Reliance on key management staff and clergy

(a) - the risk that vacancies in key posts and under-resourcing of the Diocesan offices and key central functions could lead to a breakdown in the delivery of the Diocesan mission and stewardship of its assets. The mitigating controls are:

• The Diocese fosters a culture of sharing and support ensuring that there is awareness and management of potential issues before they can escalate;

• A process of collation of key documented processes is in progress to ensure that the YDBF is well placed to manage any significant incident; and

• The Trustees will continue to review the staffing of central functions as part of the development of the strategic plans.

(b) - the risk that clergy and other key leaders will not have the capacity to deliver the strategic goals in relation to growth either due to individual capability or there being too many demands placed on limited parish resources. The mitigating controls are:

  - The Diocese fosters a culture of sharing and support ensuring that there is awareness and management of potential issues before they can escalate;

  - The Diocesan Leadership Team, supported by the Transformation & Strategy Programme Manager, are responsible for ensuring that the demands being placed on parishes are being coordinated and accompanied by appropriate levels of support and training.

1. The risk that the YDBF is unable to meet its strategic aims due to financial constraints as a result of a decline in parish Free Will Offerings, the impact of COVID-19, or reduction in funding from the Church Commissioners. The mitigating controls are:

2. Strong engagement of the Diocesan Leadership Team, especially the Archdeacons, with parishes to ensure that commitments by parishes are honoured as far as is practically possible;

3. Priority given to supporting clergy and lay leadership to grow local sustainability in terms of both attendance and giving;

4. Strong budgetary control processes to identify adverse trends and consider the necessary medium and long term actions needed to address the underlying issues;

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

• Robust reserves policy to ensure that temporary shortfalls can be financed without the need for short term cuts; and

• Investment in strategic capacity to ensure that access to funding streams from the Church Commissioners is maximised.

• Wydale Hall - The risk that the YDBF faces significant additional costs arising from a failure in Health & Safety procedures that leads to the operation being temporarily or permanently curtailed. The mitigating controls are:

• Appropriate training provided for Wydale staff;

• Robust hygiene policies, record keeping and verification schedules are in place and

• Programme of focussed interventions to significantly reduce levels of risk in this area including the recruitment of appropriately qualified staff when vacancies arise.

• The risk that the YDBF faces significant additional costs in relation to Pension Fund liabilities or Safeguarding compliance that would place financial pressures such that a reduction in core activities becomes necessary. The mitigating controls are:

• Strong budgetary control processes to identify adverse trends and consider the necessary medium and long term actions needed to address the underlying issues;

• Robust reserves policy to ensure that temporary shortfalls can be financed without the need for short term cuts; and

• Close contact with the National Church Institutions and other dioceses to facilitate collaborative approaches to mitigating the impact.

STRUCTURE AND GOVERNANCE

Summary Information about the structure of the Church of England

The Church of England is the established church and HM The Queen is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is a See under the care of a Bishop who is charged with the cure of souls of all the people within that 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 comprising ex-officio and elected representatives from each Diocese and it agrees, and lays 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 Pension Board administers the pension schemes for clergy and lay workers. Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod. The Diocese itself is divided into twenty one deaneries, each with its own Synod and within each parish there is a parochial church council which shares with the parish priest responsibility for the mission of the church in that place, in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod.

Whilst each Diocese is a separate legal entity, with a clear responsibility for a specific geographical area, being part of the Church of England requires and enables each Diocese to seek support from and application for partnership with neighbouring Dioceses.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Organisational structure

The York Diocesan Board of Finance (YDBF) is a company limited by guarantee (No. 225234) and a registered charity (No. 244976) governed by its Standing Orders and its Memorandum and Articles of Association which were approved on 16 July 2009. The company’s principal activity is to promote, assist and advance the work of the Church of England within the Diocese of York. It was established in its present form in 1927 and is successor in title to the York Diocesan Trustees.

Its statutory governing body is the Diocesan Synod, which is an elected body with representation from all parts of the Diocese. Membership consists of ex officio members, including the Archbishop, Suffragan Bishops and Archdeacons; clergy members elected by the houses of clergy in Deanery Synods; lay members elected by the houses of laity in Deanery Synods; up to five persons who may be co-opted by the house of clergy or the house of laity; and a maximum of 10 members nominated by the Archbishop. The Diocesan Synod normally meets three times a year. Many of Diocesan Synod’s responsibilities have been delegated to the Archbishop’s Council and Standing Committee.

Archbishop’s Council

The members of the Archbishop’s Council and Standing Committee are also appointed to the Board of Directors, with the exception of the Bishop of Beverley and any member of the Council who is an employee of the Company. Archbishop’s Council consists of 13 ex officio members, including the Archbishop, the four Suffragan Bishops and the three Archdeacons, four clergy elected by the house of clergy from among their number and eight lay persons elected by the members of the house of laity representing deaneries and a maximum of six Synod members nominated by the Archbishop.

Decision making structure

Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of York are set by the Diocesan Synod, and the YDBF. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Diocesan Chief Executive. The Diocesan Synod each year receives and agrees the annual budget, prepared and approved by the YDBF. The Trustees, meeting within the context of the Archbishop’s Council & Standing Committee, hold up to five meetings during the year to formulate and coordinate policies on mission, ministry and finance by:-

• Initiating proposals for action 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 Synod Standing Orders

• Acting as the Trustees of the YDBF

• Planning the business of the Synod, preparing the agenda for its session, and circulating to members information about matters for discussion

• Advising the Archbishop on any matters he may refer to the committee

• Initiating consideration of any restructuring of Synod Committees and Departments which may appear necessary and for 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 committees and representatives to external bodies, subject to the direction of the Synod

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

The Trustees are assisted in their work by three sub-committees:-

Finance Sub-Committee : the role of the Finance Sub-committee is to provide focussed support to the directors of the YDBF so that they might better enable the mission of the diocese through sound financial management and transparent, open reporting. The responsibilities of the Finance SubCommittee include:

• Approving the Management Accounts;

• Monitoring the financial performance of the Diocese against budget and forecast;

• Reviewing and giving first stage approval to the budget;

• Ensuring that appropriate Financial Statements are drawn up;

• Making recommendations on and monitoring the operation of the Common Fund including the process of making Freewill Offers;

• Making recommendations for the Board’s approval on levels of stipends, salaries and pension provision;

• Acting for the Board in its capacity as Custodian Trustee in relation to third party investments;

• Making recommendations to the Board on the appointment of professional advisers;

• Monitoring entries in the Risk Register that relate to finance;

• Monitoring and reflecting updates to financial regulation;

• Ensuring the appropriate provision of HR expertise and policies in order to meet the obligations of the DBF; and

• Undertaking such other work as may be referred to it by the YDBF.

Property Sub-Committee: the Property Sub-Committee undertakes the YDBF’s responsibilities under the Church Property Measure 2018; the Repair of Benefice Building Measure 1972; the PCC (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 (with respect to parochial property); the Endowment and Glebe Measure 1976 (with regard to property assets); and the Ecclesiastical Offices (Terms of service) Measure 2011.

Diocesan Pastoral & Mission Sub-Committee: as far as is permissible under Ecclesiastical Law the functions of the Pastoral and Mission Committee as set out in the Mission and Pastoral Measure 2011 have been delegated to the Pastoral and Mission Sub-Committee. The primary function of the Committee is pastoral reorganisation in the Diocese of York, taking account of available clergy numbers and making use of new patterns of ministry.

Trustee recruitment and induction.

Trustees are members of the Archbishop’s Council & Standing Committee 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. All Trustees are required to provide updated declarations for the registers of skills and interests on a tri-annual basis. Some employees hold the title of ‘Director’, but this relates to their function within the organisation and has no legal meaning within the terminology associated with the Companies Act.

Governance developments.

The elected Trustees began their new 3 year term in January 2019 when the whole Board received Trustee Training, including reference to the 2017 Charity Governance Code (produced by the Good Governance Group). Those appointed since that date have been offered similar training. The ongoing monitoring of governance and the periodic review of terms of reference of sub-committees is overseen by the Audit Committee and the Chairs of the Houses of Clergy and Laity of the Diocesan Synod.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Remuneration of key management personnel

Emoluments of key management personnel are determined through a process of job evaluation and with reference to market rates for equivalent jobs.

Delegation of day to day delivery

The Trustees and the sub-committees which assist them in the fulfilment of their responsibilities, rely upon the Diocesan Chief Executive and his colleagues for the delivery of the day to day activities of the company. The Chief Executive is given specific and general delegated authority to deliver the business of the YDBF in accordance with the policies framed by the Trustees.

Funds held as Custodian Trustee

The YDBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the YDBF does not control them, and they are segregated from the YDBF’s own assets by means of separate bank accounts and accounting system. The market value of funds held as custodian amounted to £14,628,000 at 31 December 2020 (2019: £14,111,000). Custodian investments are summarised in note 29.

Funds held on behalf of schools

The Board of Education (as incorporated within the YDBF) receives contributions from governors of church schools within the Diocese in connection with major repair and capital projects to church schools and also government grants in connection with the same. The Board of Education administers these monies as managing agent and makes appropriate payments to contractors for work carried out. The monies do not belong to the Board of Education and as such the receipts and payments are not treated as income and expenditure in the Statement of Financial Activities. Any monies held at the balance sheet date are treated as creditors on the balance sheet. The amount included in creditors as at 31 December 2020 is £146,000 (2019: £120,000).

TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations . Company law requires the Trustees (as Directors) to prepare financial statements for each financial year. Under that 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 law). 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 YDBF and of the surplus or deficit of the YDBF for that period. In preparing these financial statements the Trustees are required to:

• Select suitable accounting policies and apply them consistently

• Observe methods and principles in the Charities SORP

• Make judgements and estimates that are reasonable and prudent

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation

The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the YDBF and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

of the YDBF 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 YDBF’s website. Legislation in England and Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.

STATEMENT OF DISCLOSURE TO THE AUDITORS

So far as the Trustees are aware:

• a) there is no relevant audit information of which the charitable company’s auditors are unaware, and

• 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 company’s auditors are aware of that information.

APPOINTMENT OF AUDITORS

Haysmacintyre LLP have expressed their willingness to continue in office as auditor for the next financial year and are deemed to be reappointed under Section 487 (2) of the Companies Act 2006 until otherwise resolved at a General Meeting of the Company.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

ADMINISTRATIVE DETAILS

Trustees

No Trustee had any beneficial interest in the company during 2020. The following Trustees were in post at the date of this report (those who served for some or all of 2020 are shown in italics ):

Ex-officio: Chair– Mr C R Barton The Dean of York – The Right Reverend Jonathan Frost The Archbishop of York The Most Reverend & Right Honourable S Cottrell (from 9 July 2020) The Archbishop of York The Most Reverend & Right Honourable Dr JTM Sentamu (to 7 June 2020) The Bishop of Whitby – The Right Reverend PJ Ferguson (Vice-Chairman) The Bishop of Selby – The Right Reverend Dr JB Thomson The Bishop of Hull – The Right Reverend AM White The Archdeacon of Cleveland – The Venerable A Bloor (appointed 16.06.2020) The Archdeacon of the East Riding – The Venerable AC Broom The Archdeacon of York – The Venerable SJ Rushton

The Chair of the House of Laity - Dr N Land The Chair of the House of Clergy - The Reverend T Robinson Elected by: Synod House of Clergy The Reverend NWR Bird The Reverend RC Carew The Revd M J Proctor The Reverend FR Mayer-Jones

Synod House of Laity Miss KM Banks Mr D Brookes Dr NA Burgess Mr AM Hagon Canon R Liversedge Mr MO Stallybrass Mrs CS Gilderdale Mr RH Nihill

Co-opted by the Archbishop Mrs RPA Brewer Mr B Hudson Reverend MJ Porter

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT

For the year ended 31 December 2020

Senior staff and advisers Diocesan Chief Executive Canon PJ Warry Assistant Diocesan Secretary Ms SA Davies Director of Finance Mrs K Rose Director of Education Mr AK Smith Director of Communications & Parish Resourcing Mr M Sheppard Director of Making & Nurturing Disciples The Reverend Richard White Director of Training for Missional Ministry The Reverend Dr GT Wakefield Registered Office: Diocese of York, Amy Johnson Way, Clifton Moor, York, YO30 4XT Bankers Barclays Bank PLC, 1-3 Parliament Street, York, YO1 8SE Auditors haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG Solicitors Lupton Fawcett LLP, Stamford House, Piccadilly, York, YO1 9PP Investment advisers CCLA Investment Management Ltd 80 Senator House, 85 Queen Victoria Street, London, EC4V 4ET and Smith & Williamson Investment Management LLP, 9 Colmore Row, Birmingham, B3 2BJ Glebe Agents Savills, River House, 17 Museum Street, York, YO1 7DJ and Dee, Atkinson & Harrison, The Exchange, Exchange Street, Driffield YO25 6LD Insurers Ecclesiastical, Beaufort House, Brunswick Road, Gloucester, GL1 1JZ

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report included on pages 4 – 16 within their capacity as company directors.

ON BEHALF OF THE TRUSTEES

Mr CR Barton Chairman 25 May 2021

The Right Rev’d PJ Ferguson Vice Chair 25 May 2021

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE YORK DIOCESAN BOARD OF FINANCE LIMITED

Opinion

We have audited the financial statements of the York Diocesan Board of Finance Limited for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the 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 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of the charitable company’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 with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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• the information given in the Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the Annual Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect 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 records 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.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 20 and 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding vulnerable beneficiaries, health and safety, and employment (including taxation), and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, Church of England Measures and VAT law.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

• Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions;

• Challenging assumptions and judgements made by management in their critical accounting estimates;

• Testing transfers between funds; and

Page 25

• Cut-off testing in respect of revenue.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the 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 matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

18 June 2021

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

For the year end 31 December 2020

Note Income and endowments from Donations 2 Parish contributions Archbishops' Council Other donations Charitable activities 3 Other activities 4 Investments 5 Other 6 Total Expenditure on Raising Funds 7 Charitable activities General charitable activities 8 Losses/(gains) on clergy pension 25 scheme Total Net income before investment gains and losses Net gains/(losses) on investments 20 Net income Transfers between funds 13 Net movement in funds Total funds brought forward Total funds carried forward 20	Unrestricted funds £'000 7,338 1,825 266 941 222 1,166 (17) 11,741 187 12,062 29 12,278 (537) 797 260 (856) (596) 14,929 14,333	Restricted funds £'000 - 395 175 612 - 7 15 1,204 - 1,810 - 1,810 (606) - (606) 1,508 902 10,284 11,186	Endowment funds £'000 - - - - - - 568 568 - 280 - 280 288 2,887 3,175 (652) 2,523 75,207 77,730	Total funds Total funds 2020 2019 £'000 £'000 7,338 8,098 2,220 2,244 441 3,483 1,553 1,673 222 207 1,173 1,192 566 2,652 13,513 19,549 187 220 14,152 13,865 29 (2,163) 14,368 11,922 (855) 7,627 3,684 3,015 2,829 10,642 - - 2,829 10,642 100,420 89,778 103,249 100,420

All activities derive from continuing activities. The notes on pages 31 to 59 from part of the financial statements.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

INCOME AND EXPENDITURE ACCOUNT For the year end 31 December 2020

Total income Total expenditure Operating surplus for the year Net gains/(losses) on investments Net (expenditure)/income for the year Other comprehensive expenditure/income Net assets transferred from/(to) endowments Total comprehensive income	Total Total 2020 2019 £'000 £'000 12,945 18,379 (14,088) (11,922) (1,143) 6,457 797 1,451 (346) 7,908 - - 652 (3,063) 306 4,845

The Income and Expenditure Account is derived from the Statement of Financial Activities, with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

BALANCE SHEET At 31 December 2020

Company number - 225234 Note Fixed assets Tangible assets 14 Investments 15 Current assets Debtors 17 Cash on deposit Cash at bank and in hand Creditors: amounts falling due within one year 18 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Creditors: amounts falling due after more than 19 one year NET ASSETS FUNDS Endowment funds (Including Investment Valuation Reserve of £20,744,000 (2019: £20,581,000)) Restricted income funds (Including Investment Valuation Reserve of £413,000 (2019: £396,000)) Unrestricted income funds: (Including Investment Valuation Reserve of £4,009,000 (2019: £3,424,000)) General -other General - represented by tangible fixed assets Designated Total funds 22	£'000 £'000 £'000 £'000 48,723 50,066 48,689 45,150 97,412 95,216 3,587 3,734 2,824 1,425 1,860 2,808 8,271 7,967 (1,948) (1,703) 6,323 6,264 103,735 101,480 (486) (1,060) 103,249 100,420 77,730 75,207 11,186 10,284 9,003 9,211 4,999 5,488 331 230 103,249 100,420 2020 2019	£'000 £'000 £'000 £'000 48,723 50,066 48,689 45,150 97,412 95,216 3,587 3,734 2,824 1,425 1,860 2,808 8,271 7,967 (1,948) (1,703) 6,323 6,264 103,735 101,480 (486) (1,060) 103,249 100,420 77,730 75,207 11,186 10,284 9,003 9,211 4,999 5,488 331 230 103,249 100,420 2020 2019
		95,216 6,264
	8,271 (1,948)
		101,480 (1,060)
		100,420
		75,207 10,284 9,211 5,488 230
		100,420

The Cash Flow Statement and the Notes form part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 25 May 2021 and signed on behalf of the Board by:

Mr CR Barton Chairman

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

CASH FLOW STATEMENT

For the year end 31 December 2020

Net cash (outflow) from operating activities Cash flows from investing activities Dividends and interest from investments Proceeds from sale of: Tangible fixed assets Fixed asset investments Closed Churches Purchase of: Tangible fixed assets for the use of the YDBF Fixed asset investments Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and equivalents at 1 January Cash and equivalents at 31 December Reconciliation of net income to net cash flow from operating activities Net income for the year ended 31 December Adjusted for: Depreciation charges Write down of impaired asset Dividends and interest from investments Profit on sale of functional assets Profit on disposal of closed churches (Increase) in debtors (Decrease) in creditors Net cash used in operating activities Analysis of cash and cash equivalents Cash at bank and in hand Notice deposits (less than 3 months)	£'000 £'000 £'000 £'000 (1,598) (827) 634 704 1,265 3,612 3,749 1,512 15 116 (10) (2,137) (3,604) (1,472) 2,049 2,335 451 1,508 4,233 2,725 4,684 4,233 (855) 7,627 14 29 625 - (634) (704) (551) (2,536) (15) (116) 147 (2,447) (329) (2,680) (1,598) (827) 1,860 2,808 2,824 1,425 4,684 4,233 2020 2019	£'000 £'000 £'000 £'000 (1,598) (827) 634 704 1,265 3,612 3,749 1,512 15 116 (10) (2,137) (3,604) (1,472) 2,049 2,335 451 1,508 4,233 2,725 4,684 4,233 (855) 7,627 14 29 625 - (634) (704) (551) (2,536) (15) (116) 147 (2,447) (329) (2,680) (1,598) (827) 1,860 2,808 2,824 1,425 4,684 4,233 2020 2019
		1,508 2,725
		4,233
		7,627 29 - (704) (2,536) (116) (2,447) (2,680)
		(827)
		2,808 1,425
		4,233

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NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

1. ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention, with the exception of fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP (FRS102)) second edition effective 1 January 2019, the Companies Act 2006 and applicable accounting standards (FRS102).

The financial statements have been prepared on a going concern basis. The Trustees have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determining that this is the appropriate basis of preparation of the financial statements and have considered a number of factors. The financial position of the YDBF, its net income for the year and cash flows as set out in the Statement of Financial Activities and Cash Flow Statement demonstrate the overall net cash position of the YDBF and the strength of its reserves. As a consequence the Trustees believe that the YDBF is well placed to manage the business risks successfully despite the uncertainties surrounding the current general economic outlook and that there is no matrial uncertainty relating to going concern.

The Trustees have a reasonable expectation that the YDBF has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

The principal accounting policies and estimation techniques are as follows.

a) Income

All income is included in the Statement of Financial Activities (SOFA) when the YDBF is legally entitled to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.

• i) Freewill Offering is recognised as income of the year in respect of which it is received.

• ii) Rent receivable is recognised as income in the period with respect to which it relates.

• iii) Interest and dividends are recognised as income when receivable.

• iv) Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year.

Grant income in respect of the Coronavirus Job Retention Scheme is included in other income and is recognised in the same period as the staff costs to which it relates.

• v) Parochial fees are recognised as income of the year to which they relate.

• vi) Donations other than grants are recognised when receivable .

• vii) Gains on disposal of fixed assets for the YDBF’s own use (i.e. non-investment assets) are accounted for as other incoming resources. Losses on disposal of such assets are accounted for as other expenditure.

• viii) Permanent endowment funds (Stipends Capital Fund). This account is governed by the Diocesan Stipends’ Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting.

• ix) Permanent endowment funds (Ordination Candidates Council Fund, First Lord Grimthorpe’s Trust and Local Trusts’ Stipend Fund). The income is fully expended within the year of receipt and the terms of the funds, therefore, are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

1. ACCOUNTING POLICIES (continued)

b) Expenditure

Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category.

• i) Costs of raising funds are constrained to costs relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.

• ii) Charitable expenditure is analysed between contributions to the Archbishops’ Council, expenditure on resourcing mission and ministry in the parishes of the diocese, expenditure relating to the running of the diocesan retreat centre, and expenditure on education and Church of England schools in the diocese.

• iii) Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the YDBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

• iv) Support costs consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.

• v) Pension contributions . The YDBF's staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pensions Scheme (see note 25). The pension costs charged as resources expended represent the YDBF's contributions payable in respect of the accounting period, in accordance with FRS102. Deficit funding for the pension schemes to which YDBF participates is accrued at current value in creditors distinguished between contributions falling due within one year and after more than one year.

c) Tangible fixed assets and depreciation

Freehold properties

Depreciation is not provided on buildings as any provision (annual or cumulative) would not be material due to the very long expected remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value. The YDBF has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from obsolescence. In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value.

The Trustees review the YDBF’s assets for indications of impairment each year. Where indicators of impairment are identified the affected assets are written down to the recoverable amount, which is the higher of the asset’s fair value and its value in use. The impairment losses are recognised in expenditure.

Where expenditure on refurbishing a property exceeds £15,000 it is capitalised if it adds value to the property.

Properties subject to value linked loans

Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are stated using the value of the related loan at the balance sheet date. Each year end the respective property and loan are carried at an index linked current valuation basis.

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NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

1. ACCOUNTING POLICIES (continued)

c) Tangible fixed assets and depreciation (continued)

Investment properties

Glebe properties which are held for investment purposes and rented out have been included at their fair value.

Parsonage houses

The YDBF has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The YDBF is formally responsible for the maintenance and repair of such properties and has some jurisdiction over 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 Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their historical cost.

Valuation of fixed assets

Parsonages, team vicarages and general fund owned houses are carried at historical cost. A number of properties were first recognised at the relevant 1994 council tax band value, which is now treated as historical cost.

d) Other tangible fixed assets

All capital expenditure over £2,000 is capitalised and depreciated as follows. Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asset’s acquisition) of other fixed assets over their currently expected useful economic lives at the following initial rates:-

Computer Equipment 25% per annum straight line basis Furniture and equipment 25% per annum straight line basis

e) Other accounting policies

• i) Fixed asset investments are included in the balance sheet at market value and the gain or loss taken to the Statement of Financial Activities.

• ii) Leases . The YDBF has entered only into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure in the year to which it relates.

f) Fund balances

Fund Balances are split between unrestricted (general and designated), restricted and endowment funds.

• Unrestricted funds are the YDBF’s corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the YDBF. There are two types of unrestricted funds:

• General funds which the YDBF intends to use for the general purposes of the YDBF and

• Designated funds set aside out of unrestricted funds by the YDBF for a purpose specified by the Trustees

• Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2019

1. ACCOUNTING POLICIES (continued)

• Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the YDBF (Parsonage Houses and Schools), there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.

“Special trusts” (as defined by the Charities Act 2011) and any other trusts where the company acts as trustee and controls the management and use of the funds, are included in the company’s own financial statements as charity branches. Trusts where the YDBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are summarised in the notes to the financial statements.

g) Key judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

• Assessment of residual value of freehold property when determining whether or not depreciation is required – see above;

• Calculation of depreciation – see details set out at 1c) above; and

• Accounting for pensions – the key assumptions underpinning the pension creditor reflected in these accounts are set by the Church of England Pensions Board and then reviewed and accepted or challenged by the Trustees.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

2. DONATIONS

2a. Parish Contributions

The majority of donations are collected from parishes through the Freewill Offering system.

	Unrestricted	Restricted	Endowment	Total funds
	Funds	Funds	Funds	2020
	£'000	£'000	£'000	£'000
Parish contributions to the Common Fund
Current year contributions	7,265	-	-	7,265
Receipts for previous years	73	-	-	73
Total income	7,338	-	-	7,338
2019 comparative	Unrestricted	Restricted	Endowment	Total funds
	Funds	Funds	Funds	2019
	£'000	£'000	£'000	£'000
Parish contributions to the Common Fund
Current year contributions	8,044	-	-	8,044
Receipts for previous years	54	-	-	54
Total income	8,098	-	-	8,098
2b. Archbishops' Council
2020	Unrestricted	Restricted	Endowment	Total funds
	Funds	Funds	Funds	2020
	£'000	£'000	£'000	£'000
Resourcing Education Ministry	-	395	-	395
Grant for low income dioceses	1,825	-	-	1,825
Strategic Capacity Funding Grant	-	-	-	-
Total income	1,825	395	-	2,220
2019 comparative	Unrestricted	Restricted	Endowment	Total funds
	Funds	Funds	Funds	2019
	£'000	£'000	£'000	£'000
Resourcing Education Ministry	-	339	-	339
Grant for low income dioceses	1,905	-	-	1,905
	1,905	339	-	2,244

Resourcing Ministerial Education is a funding stream to support the costs of ordinand training which was introduced for the 2017/18 academic year and replaces a previous model whereby the training was funded directly by the Church Commissioners.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

2. DONATIONS (continued)

2c. Other donations

All Churches Trust Grant Other grants and donations 2019 comparative All Churches Trust Grant Other grants and donations	Unrestricted Funds £'000 185 81 266 Unrestricted Funds £'000 194 66 260	Restricted Funds £'000 - 175 175 Restricted Funds £'000 - 3,223 3,223	Endowment Funds £'000 - - - Endowment Funds £'000 - - -	Total funds 2020 £'000 185 256
				441
				Total funds 2019 £'000 194 3,289
				3,483

Of the £3,223,000k restricted donations in 2019, £3,167,000 was from the Church Commissioners towards the costs of the multiply and restructuring programmes. To be spent over 5 years from 2019.

3. CHARITABLE ACCTIVITIES

Statutory fees Church Commissioners Guaranteed Annuities Chaplaincy and other Diocesan Board of Education Wydale Hall 2019 comparative Statutory fees Church Commissioners Guaranteed Annuities Chaplaincy and other Diocesan Board of Education Wydale Hall	Unrestricted Funds £'000 601 2 338 - - 941 Unrestricted Funds £'000 722 2 234 - - 958	Restricted Funds £'000 - - 30 170 412 612 Restricted Funds £'000 - - 25 217 473 715	Endowment Funds £'000 - - - - - - Endowment Funds £'000 - - - - - -	Total funds 2020 £'000 601 2 368 170 412
				1,553
				Total funds 2019 £'000 722 2 259 217 473
				1,673

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

4. OTHER TRADING ACTIVITIES

Housing income 2019 comparative Housing income 5. INVESTMENT INCOME Dividends receivable Interest receivable Rental receivable 2019 comparative Dividends receivable Interest receivable Rental receivable 6. OTHER INCOME Gain on sale of properties Disposal of closed churches 2019 comparative Gain on sale of properties Disposal of closed churches	Unrestricted Funds £'000 222 Unrestricted Funds £'000 207 Unrestricted Funds £'000 617 10 539 1,166 Unrestricted Funds £'000 686 16 488 1,190 Unrestricted Funds £'000 (17) - (17) Unrestricted Funds £'000 724 - 724	Restricted Funds £'000 - Restricted Funds £'000 - Restricted Funds £'000 - 7 - 7 Restricted Funds £'000 - 2 - 2 Restricted Funds £'000 - 15 15 Restricted Funds £'000 642 116 758	Endowment Funds £'000 - Endowment Funds £'000 - Endowment Funds £'000 - - - - Endowment Funds £'000 - - - - Endowment Funds £'000 568 - 568 Endowment Funds £'000 1,170 - 1,170	Total funds 2020 £'000 222
				Total funds 2019 £'000 207
				Total funds 2020 £'000 617 17 539
				1,173
				Total funds 2019 £'000 686 18 488
				1,192
				Total funds 2020 £'000 551 15
				566
				Total funds 2019 £'000 2,536 116
				2,652

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

7. FUNDRAISING COSTS

Investment Manager's Fees Property agent's fees Other rented property costs 2019 comparative Investment Manager's Fees Property agent's fees Other rented property costs 8. CHARITABLE ACTIVITIES Contributions to Archbishops' Council Training for ministry National Church responsibilities Grants & provisions Mission agency pension costs Retired clergy housing costs Ordinand maintenance grants - pooling adjustment Resourcing Ministry and Mission Parish ministry Stipends, national insurance and pensions Housing costs Removal, resettlement and grants Specialist ministry Stipends, national insurance and pensions Resourcing Ministerial Education Support for parish ministry Impairment of houses Wydale Hall Expenditure on Education Support for church schools and parishes	Unrestricted Funds £'000 26 117 44 187 Unrestricted Funds £'000 29 110 81 220 Unrestricted Funds £'000 351 265 29 13 126 118 902 5,801 1,821 157 642 - 8,421 2,203 115 1 10,740 420 12,062	Restricted Funds £'000 - - - - Restricted Funds £'000 - - - - Restricted Funds £'000 - - - - - - - - - - 458 341 799 317 230 327 1,673 137 1,810	Endowment Funds £'000 - - - - Endowment Funds £'000 - - - - Endowment Funds £'000 - - - - - - - - - - - - - - 280 - 280 - 280	Total funds 2020 £'000 26 117 44
				187
				Total funds 2019 £'000 29 110 81
				220
				Total funds 2020 £'000 351 265 29 13 126 118
				902
				5,801 1,821 157 1,100 341
				9,220 2,520 625 328
				12,693
				557
				14,152

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NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

8. CHARITABLE ACTIVITIES (continued)

8. CHARITABLE ACTIVITIES (continued)
2019 comparative	Unrestricted	Restricted	Endowment	Total funds
	Funds	Funds	Funds	2019
	£'000	£'000	£'000	£'000
Contributions to Archbishops' Council
Training for ministry	351	-	-	351
National Church responsibilities	279	-	-	279
Grants & provisions	30	-	-	30
Mission agency pension costs	4	-	-	4
Retired clergy housing costs	120	-	-	120
Ordinand maintenance grants - pooling	86	-	-	86
adjustment
	870	-	-	870
Resourcing Ministry and Mission
Parish ministry
Stipends, national insurance and pensions	6,274	-	-	6,274
Housing costs	1,637	-	-	1,637
Removal, resettlement and grants	195	-	-	195
Specialist ministry
Stipends, national insurance and pensions	652	481		1,133
Resourcing Ministerial Education	-	318	-	318
Strategic capacity project spend	-	-	-	-
	8,758	799	-	9,557
Support for parish ministry	2,133	202	-	2,335
Wydale Hall	5	458	-	463
	10,896	1,459	-	12,355
Expenditure on Education
Support for church schools and parishes	365	275	-	640
	12,131	1,734	-	13,865

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year end 31 December 2020

9. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

Raising Funds Charitable Activities: Contributions to Archbishops' Council Resourcing parish ministry Education Retreat Centre Losses on clergy pension scheme 2019 comparatives Raising Funds Charitable Activities: Contributions to Archbishops' Council Resourcing parish ministry Education Retreat Centre (Gains) on clergy pension scheme	Activities Undertaken Directly £'000 187 - 9,521 481 242 29 10,460 Activities Undertaken Directly £'000 220 - 8,961 534 358 (2,163) 7,910	Grant Funding of Activities £'000 - 902 351 - - - 1,253 Grant Funding of Activities £'000 - 870 547 - - - 1,417	Support Costs £'000 - - 2,493 76 86 - 2,655 Support Costs £'000 - - 2,384 106 105 - 2,595	Total Costs 2020 £'000 187 902 12,365 557 328 29
				14,368
				Total Costs 2019 £'000 220 870 11,892 640 463 (2,163)
				11,922

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NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

10. ANALYSIS OF SUPPORT COSTS

	Unrestricted	Unrestricted	Restricted	Restricted	Endowment	Total funds
	Funds		Funds		Funds	2020
	£'000		£'000		£'000	£'000
Central Administration	2,338			-	-	2,338
Pension deficit church workers scheme
Support for Schools		76		-	-	76
Retreat Centre		-	86		-	86
Governance:
External Audit		29		-	-	29
Registrar & Chancellor	122			-	-	122
Synodical costs		4		-	-	4
	2,569		86		-	2,655
2019 comparative	Unrestricted		Restricted		Endowment	Total funds
	Funds		Funds		Funds	2019
	£'000		£'000		£'000	£'000
Central Administration	2,224			-	-	2,224
Pension deficit church workers scheme
Support for Schools	106			-	-	106
Retreat Centre		-	105		-	105
Governance:
External Audit		25		-	-	25
Registrar & Chancellor	116			-	-	116
Synodical costs		19		-	-	19
	2,490		105		-	2,595
11. ANALYSIS OF GRANTS MADE						2020
	Number		Individuals		Institutions	Total
			£'000		£'000	£'000
From unrestricted funds for national church responsibilities
Contributions to Archbishops' Council		12		-	902	902
From unrestricted funds
PCCs for church inspection fees		33		-	17	17
PCC for faculty fees	190			-	42	42
PCCs for Repairs to Church Buildings		10		-	19	19
Ordinands in training		17		92	-	92
Clergy for training		25		5	-	5
Resettlement Grants		43	157		-	157
Diocese of York Educational Trust		1		-	2	2
Archbishop's Mission Fund		9		-	5	5
Multiply (20's-40's) grant to Church Army	-			-	-	-
From restricted funds
PCCs for Repairs to Church Buildings		3		-	12	12
	331		254		97	351
Total	343		254		999	1,253

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NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

11. ANALYSIS OF GRANTS MADE (continued)

2019 comparative From unrestricted funds for national church responsibilities Contributions to Archbishops' Council From unrestricted funds PCCs for church inspection fees PCC for faculty fees PCCs for Repairs to Church Buildings Ordinands in training Clergy for training Resettlement Grants Diocese of York Educational Trust Archbishop's Mission Fund Multiply (20's-40's) grant to Church Army Total 12. STAFF COSTS Employee costs during the year were as follows: Wages and salaries National insurance contributions Pension Costs - Current Year Pension Costs - Deficit The average number of persons employed during the year : Parochial Posts Archdeaconry based roles Reach, Grow, Sustain posts Safeguarding and Pastoral Care Training, Vocations and School of Ministry Education Other Diocesan Office based posts Longhill Wydale Hall Externally funded posts The average number of persons employed during the year based o Parochial Posts Archdeaconry based roles Reach, Grow, Sustain posts Safeguarding and Pastoral Care Training, Vocations and School of Ministry Education Other Diocesan Office based posts Longhill Wydale Hall Externally funded posts	Number Individuals £'000 12 - 38 - 266 - 9 - 21 95 77 17 52 193 2 - 7 - 1 - 473 305 485 305 n full-time equivalents:	Institutions £'000 870 19 59 20 - - - 4 8 132 242 1,112 2020 £'000 2,351 229 263 12 2,855 Number 3.0 4.2 9.1 3.9 8.2 10.0 22.8 3.0 10.8 4.3 79.3 Number 2.9 3.1 9.1 3.4 6.7 9.4 20.7 1.3 6.7 2.8 66.1	2019 Total £'000 870
			19 59 20 95 17 193 4 8 132
			547
			1,417
			2019 £'000 2,205 213 220 20
			2,658
			Number 1.6 4.0 7.1 2.9 9.8 10.8 21.6 3.0 14.7 5.7
			81.1
			Number 1.6 2.5 7.1 2.9 8.6 9.5 20.2 1.3 7.7 3.5
			64.9

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

12. STAFF COSTS (continued)

The number of staff whose emoluments (including benefits in kind but excluding Pension contributions) amounted to more than £60,000 were as follows:

amounted to more than £60,000 were as follows:
	2020		2019
£60,000 - £70,000		2		1
£70,000 - £80,000		1		1
Pension payments of£31,035(2019: £21,650) were made to these employees
Payments on termination of employment of £nil (2019: £ni) have been made during the year

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the Trustees, for planning, directing and controlling the activities of the diocese. During 2020 they were:

Diocesan Chief Executive	Canon PJ Warry
Assistant Diocesan Secretary	Ms SA Davies
Director of Finance	Mrs K Rose
Diocesan Director of Education	Mr AK Smith
Director of Communications and Parish Resourcing	Mr M Sheppard
Director of Making and Nurturing Disciples	The Reverend R White
Director of Training for Missional Ministry	The Reverend Doctor GT Wakefield

Remuneration, pensions and benefits for these employees amounted to £502,054 (2019: £465,104).

Trustees’ emoluments

No Trustee received any remuneration for services as Trustee. 12 (2019:14) of the Trustees received travelling and out of pocket expenses, totalling £10,702 (2019 - £25,990) in respect of General Synod duties, duties as archdeacon or area/rural dean, and other duties as Trustees.

The following table gives details of the Trustees who were in receipt of a stipend and/or housing provided by the YDBF during the year:

the YDBF during the year:
	Stipend		Housing
The Most Reverend & Right Honourable S Cottrell		No	No
The Most Reverend & Right Honourable Dr JTM Sentamu		No	No
The Right Reverend J Frost		No	No
The Right Reverend PJ Ferguson		No	Yes
The Right Reverend JB Thomson		No	Yes
The Right Reverend AM White		No	Yes
The Venerable AC Broom		Yes	Yes
The Venerable SJ Rushton		Yes	Yes
The Venerable A Bloor		Yes	Yes
The Reverend T Robinson		Yes	Yes
The Reverend NWR Bird		Yes	Yes
The Reverend RC Carew		Yes	Yes
The Reverend MJ Proctor		Yes	Yes
The Reverend FR Mayer-Jones		Yes	Yes
The Reverend MJ Porter		Yes	Yes

The YDBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than bishops and cathedral staff. The YDBF is also responsible for the provision of housing for stipendiary clergy in the diocese including the suffragan bishops but excluding the Archbishop and cathedral staff.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year end 31 December 2020

12. STAFF COSTS (continued)

The YDBF paid an average of 184 (2019 – 194) stipendiary clergy as office-holders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

Stipends National insurance contributions Pension costs - current year Pension costs - deficit reduction	2020 2019 £'000 £'000 4,757 4,827 395 401 1,298 1,320 542 565 6,992 7,113

The stipends of the five Bishops were paid and funded by the Church Commissioners.

The stipends of the Archbishop and Suffragan Bishops are funded by the Church Commissioners and are in the range £37,670 - £72,900 (2019 range £36,930 - £71,470). The annual rate of stipend, funded by the YDBF, paid to Archdeacons in 2019 was in the range £36,110 - £36,820 (2019 range £35,400- £36,096) and other clergy who were Trustees were paid in the range £23,920 - £26,895 (2019 range £23,453 - £26,365). Stipend levels are set on the basis that housing is provided, and that costs relating to the provided housing (including rent, Council Tax, water charges, maintenance, and building insurance) are paid on behalf of clergy.

13. ANALYSIS OF TRANSFERS BETWEEN FUNDS

Pastoral Account to the Parsonages Houses Fund Parsonages Houses Fund to the Benefice Building Fund General Fund to the Pastoral Account Pastoral Account to the Diocesan Parsonages Board Diocesan Parsonages Board to Pastoral Account Parsonages Houses Fund to General fund Parsonages Houses Fund to the Diocesan Parsonages Board From the General Fund to the Stipends Capital Fund for the reduction of the clergy pension deficit General fund to designated funds	Unrestricted Funds £'000 - - (353) - - - - (503) (110) (966)	Designated Funds £'000 - - - - - - - - 110 110	Restricted Endowment Funds Funds £'000 £'000 601 (601) 311 (311) 353 - - - - - - - 243 (243) - 503 - 1,508 (652)

All of the transfers made between funds during 2020 relate to property transactions with the exception of the transfer relating to the clergy pension deficit and those to designated funds.

2019 comparative Pastoral Account to the Parsonages Houses Fund Parsonages Houses Fund to the Benefice Building Fund General Fund to the Pastoral Account Pastoral Account to the Diocesan Parsonages Board Diocesan Parsonages Board to Pastoral Account Parsonages Houses Fund to General fund Parsonages Houses Fund to the Diocesan Parsonages Board From the General Fund to the Stipends Capital Fund for the reduction of the clergy pension deficit General fund to designated funds Restricted to expendable endowment funds	Unrestricted Funds £'000 - - (319) - - 148 - (2,654) - (241) (3,066)	Designated Funds £'000 - - - - - - - - - 241 241	Restricted Funds £'000 (212) 1,428 319 (1,131) 1,131 - 227 - - (2,000) (238)	Endowment Funds £'000 212 (1,428) - - - (148) (227) 2,654 - - 2,000
				3,063

All of the transfers made between funds during 2019 relate to property transactions with the exception of the transfers relating to the clergy pension deficit, those to designated funds and the reclassification of the Uniform Statutory Trust part of the Education funds to expendable endowment. This was following a resolution in 2019 to consolidate various educational foundations, funds and endowments into the Uniform Statutory Trust.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year end 31 December 2020

14. TANGIBLE FIXED ASSETS - Land & Buildings

Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for the year Impairment Disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Wydale Hall £000 1,950 - - 1,950 - - - - - 1,950 1,950	Education Properties £000 81 - - 81 - - - - - 81 81	Freehold Properties £000 47,049 - (714) 46,335 - - 625 - 625 45,710 47,049	Diocesan Office £000 963 - -	Office Equipment £000 167 10 (23) 154 144 14 - (23) 135 19 23	Total £000 50,210 10 (737)
				963		49,483
				- - - -		144 14 625 (23)
				-		760
				963		48,723
				963		50,066

All of the properties in the balance sheet are freehold and are vested in the YDBF, except for benefice houses which are vested in the incumbent. Some properties have been purchased with the help of a value-linked loan from the Church Commissioners; when disposed of, the appropriate share of the net sale proceeds will be remitted to the Commissioners, and the related loan liability extinguished. The value of such properties included above amounts to £148,000 (2019: £148,000).

15. FIXED ASSET INVESTMENTS

Investment Property Listed Investments Unlisted Investments 16. FINANCIAL INSTRUMENTS Financial assets measured at fair value	At 1 January 2020 £000 17,466 16,689 10,995 45,150	Additions £000 - 1,864 1,740 3,604	Disposals £000 (233) (2,123) -	Change in Market Value £000 510 1,309 472 2,291 2020 £000 30,170	At 31 December 2020 £000 17,743 17,739 13,207
			(2,356)		48,689
					2019 £000 26,507

Financial assets measured at fair value comprise listed and unlisted investments and value linked loans to parishes.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

17. DEBTORS

Due within one year Capital Work in Progress Other debtors and prepayments Due after more than one year Loans to parishes Total debtors	2020 2019 £'000 £'000 355 84 2,956 3,515 3,311 3,599 276 135 3,587 3,734

Other debtors includes £2,395,894 (2019: £2,783,000) of grant awarded by the Church Commissioners towards the cost of the Multiply Project. The grant is paid over as the costs are incurred and claims for reimbursement are expected over 5 years from 2019.

18. CREDITORS: amounts falling due within one year

Trade creditors Other taxation and social security Other creditors and accruals Amounts held for other bodies Pension Scheme Liabilities Church Workers' Pension Fund Clergy Pension Scheme Total creditors amounts falling due within one year 19. CREDITORS: amounts after more than one year Loan repayment instalments due after more than one year Church Commissioners value-linked loans Pension scheme liabilities Church Workers' Pension Fund Clergy Pension Scheme Other creditors Total creditors: amounts falling due after more than one year The maturity of the above loans may be analysed as follows: In five years and more	2020 £'000 158 48 477 643 80 542 1,948 2020 £'000 53 259 119 55 486 53 53	2019 £'000 107 55 543 354 79 565
		1,703
		2019 £'000 53 328 599 80
		1,060
		53
		53

Value-linked loans (VLLs) represent amounts advanced to the DBF for the purchase of properties on an equity sharing basis and are repayable on the disposal of the related property. As at 31[st] December 2020 the Board had no intention of disposing of any of those properties funded via VLLs.

During 2011 and 2012 a significant programme of mechanical and engineering work was carried out at Wydale Hall. The work was financed by a value-linked loan of £375,000 from the general reserves of the Diocese which is secured on the Hall. During 2015 the loan was increased by a further £47,000 to facilitate the refurbishment of the General Manager’s living accommodation. There is no fixed term for repayment of the loan.

Other creditors due after more than one year relates to a 3 year grant awarded in 2019 as part of the multiply project.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

20. SUMMARY OF FUND MOVEMENTS

UNRESTRICTED FUNDS General Designated Roof Alarm Grants Fund Mustard Seed Fund RESTRICTED FUNDS Diocesan Parsonages Board Pastoral Account Resourcing Ministerial Education Benefice Building Fund Faith in Education Fund Mission Support Fund Bishops' IT First Lord Grimthorpe's Trust Ministry Fund Wydale Hall Board of Education Learning to Lead Religious Education Multiply (20s-40s) Restructuring Mustard Seed Fund Longhill Kingswood Roof Alarm & Building Grants Funds ENDOWMENT FUNDS Expendable Parsonages Houses Fund Board of Education Permanent Stipends Capital Fund Ordination Candidates Council First Lord Grimthorpe's Trust Local Trusts' Stipend Fund Total funds	Balances at 1 January 2020 £'000 14,699 37 193	Income £'000 11,741 - -	Expenditure £'000 (12,269) (9) -	Gains and losses £'000 797 - -	Balances at 31 December Transfers 2020 £'000 £'000 (966) 14,002 - 28 110 303 (856) 14,333 243 3,593 1,280 1,937 - 96 (15) 1,618 - 1 - 33 - 11 - 11 - 2 - 1,424 - 147 - - - 2,254 - - - - - 17 - 3 - 39 1,508 11,186 (1,041) 33,182 - 2,086 389 41,606 - 232 - 48 - 576 (652) 77,730 - 103,249
	14,929	11,741	(12,278)	797
	3,580 642 42 1,626 1 33 11 20 10 1,339 114 - 2,653 176 - 16 3 18	- 15 394 7 - - - 3 30 412 166 4 - 120 7 4 - 42	(230) - (340) - - - - (12) (38) (327) (133) (4) (399) (296) (7) (3) - (21)	- - - - - - - - - - - - - - - - - -
	10,284	1,204	(1,810)	-
	33,845 2,000 38,527 235 49 551	568 - - - - -	(190) - (90) - - -	- 86 2,780 (3) (1) 25
	75,207	568	(280)	2,887
	100,420	13,513	(14,368)	3,684

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

20. SUMMARY OF FUND MOVEMENTS (continued)

2019 comparative UNRESTRICTED FUNDS General Designated Roof Alarm Grants Fund Mustard Seed Fund RESTRICTED FUNDS Diocesan Parsonages Board Pastoral Account Resourcing Ministerial Education Benefice Building Fund Faith in Education Fund Mission Support Fund Bishops' IT First Lord Grimthorpe's Trust Ministry Fund Wydale Hall Board of Education Learning to Lead Religious Education Multiply (20s-40s) Restructuring Mustard Seed Fund Longhill Kingswood Roof Alarm & Building Grants Funds ENDOWMENT FUNDS Expendable Parsonages Houses Fund Board of Education Permanent Stipends Capital Fund Ordination Candidates Council First Lord Grimthorpe's Trust Local Trusts' Stipend Fund Total funds	Balances at 1 January 2019 £'000 13,377 - -	Income £'000 13,342 - -	Expenditure £'000 (10,177) (11) -	Gains and losses £'000 1,223 - -	Balances at 31 December Transfers 2019 £'000 £'000 (3,066) 14,699 48 37 193 193 (2,825) 14,929 1,358 3,580 (1,024) 642 - 42 1,428 1,626 - 1 - 33 - 11 - 20 - 10 - 1,339 (2,000) 114 - - - 2,653 - 176 - - - 16 - 3 - 18 (238) 10,284 (1,591) 33,845 2,000 2,000 2,654 38,527 - 235 - 49 - 551 3,063 75,207 - 100,420
	13,377	13,342	(10,188)	1,223
	1,894 1,550 21 197 - 33 11 19 21 1,324 1,629 - - 276 - 12 4 -	328 116 339 1 1 - - 1 25 473 521 11 3,065 102 - 13 1 40	- - (318) - - - - - (36) (458) (264) (11) (412) (202) - (9) (2) (22)	- - - - - - - - - - 228 - - - - - - -
	6,991	5,037	(1,734)	228
	34,492 - 34,195 209 42 472	944 - 226 - - -	- - - - - -	- - 1,452 26 7 79
	69,410	1,170	-	1,564
	89,778	19,549	(11,922)	3,015

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

21. SUMMARY OF ASSETS BY FUND

UNRESTRICTED FUNDS General Designated Roof Alarm Grants Fund Mustard Seed Fund RESTRICTED FUNDS Diocesan Parsonages Board Pastoral Account Resourcing Ministerial Education Benefice Building Fund Faith in Education Fund Mission Support Fund Bishops' IT First Lord Grimthorpe's Trust Ministry Fund Wydale Hall Board of Education Learning to Lead Religious Education Multiply (20s-40s) Restructuring Mustard Seed Longhill Kingswood Roof Alarm & Building Grants Funds ENDOWMENT FUNDS Expendable Parsonages Houses Fund Board of Education Permanent Stipends Capital Fund Ordination Candidates Council First Lord Grimthorpe's Trust Local Trusts' Stipend Fund Total funds	Tangible Investments £'000 £'000 4,999 9,421 - - - - 4,999 9,421 3,593 - - - - - - - - - - - - - - - - - 1,950 - - - - - - - - - - - - - - - - - 5,543 - 33,182 - 81 1,744 4,918 36,668 - 232 - 48 - 576 38,181 39,268 48,723 48,689 Fixed assets	Current Assets £'000 507 28 303 838 - 1,937 96 1,618 1 33 11 23 2 (23) 147 7 2,254 - - 17 3 39 6,165 - 586 682 - - - 1,268 8,271	Net Creditors Assets £'000 £'000 (925) 14,002 - - 28 - 303 (925) 14,333 - 3,593 - 1,937 - 96 - 1,618 - 1 - 33 - 11 (12) 11 - 2 (503) 1,424 - 147 (7) - - 2,254 - - - - - 17 - 3 - 39 (522) 11,186 - 33,182 (325) 2,086 (662) 41,606 - 232 - 48 - 576 (987) 77,730 (2,434) 103,249

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year end 31 December 2020

21. SUMMARY OF ASSETS BY FUND (continued)

2019 Comparatives UNRESTRICTED FUNDS General Designated Roof Alarm Grants Fund Mustard Seed Fund RESTRICTED FUNDS Diocesan Parsonages Board Pastoral Account Resourcing Ministerial Education Benefice Building Fund Faith in Education Fund Mission Support Fund Bishops' IT First Lord Grimthorpe's Trust Ministry Fund Wydale Hall Board of Education Learning to Lead Religious Education Multiply (20s-40s) Restructuring Mustard Seed Longhill Kingswood Roof Alarm & Building Grants Funds ENDOWMENT FUNDS Expendable Parsonages Houses Fund Board of Education Permanent Stipends Capital Fund Ordination Candidates Council First Lord Grimthorpe's Trust Local Trusts' Stipend Fund Total funds	Tangible Investments £'000 £'000 5,488 8,651 - - - - 5,488 8,651 3,580 - - - - - - - - - - - - - - - - - 1,950 - - - - - - - - - - - - - - - - - 5,530 - 33,845 - 81 1,665 5,122 33,999 - 235 - 49 - 551 39,048 36,499 50,066 45,150 Fixed assets	Current Assets £'000 1,386 37 193 1,616 - 642 42 1,626 1 33 11 20 10 (84) 114 11 2,653 176 - 16 3 18 5,292 - 489 570 - - - 1,059 7,967	Creditors £'000 (826) - - (826) - - - - - - - - - (527) - (11) - - - - - - (538) - (235) (1,164) - - - (1,399) (2,763)	Net Assets £'000 14,699 - 37 193
				14,929
				3,580 642 42 1,626 1 33 11 20 10 1,339 114 - 2,653 176 - 16 3 18
				10,284
				33,845 2,000 38,527 235 49 551
				75,207
				100,420

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

22. DESCRIPTION OF FUNDS

General fund The general fund is the YDBF’s unrestricted undesignated fund available for any of the YDBF’s purposes without restriction. Roof alarm & building grants The roof alarm and building grants funds represents funds received from third parties and those designated by the York Diocesan Board of Finance, to support Churches within the Diocese to obtain roof alarms and with building works. Mustard seed fund The mustard seed fund represents funds designated by the Trustees to be used towards the mustard seed project. Pastoral account The diocesan pastoral account was set up under the provisions of the Pastoral Measure 1983. The restricted purposes for which the account may be used are:  to defray costs incurred for the purposes of the Measure or 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 churches and parsonage houses in the diocese  other purposes of the diocese or any benefice or parish in the diocese  to make grants or loans to any other diocese  to transfer funds to the diocesan stipends fund income or capital accounts. Stipends capital fund The diocesan stipends capital fund has been created from the diocesan stipends fund capital account assets held on behalf of the diocese by the Church Commissioners under the Endowments and Glebe Measure 1976 to provide income for clergy stipends. It represents the accumulated sale proceeds of glebe property, sale proceeds of 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. The funds are invested as part of the YDBF’s portfolio and managed by CCLA or Smith &Williamson. Parsonages houses fund This fund represents the carrying value of all the benefice houses (parsonages) in the Diocese. These are expendable endowments in that the Board has the power to convert certain sale proceeds to income with various consents obtained locally and from the Church Commissioners by being transferred to the Diocesan Pastoral Account and then converted to an income account at a later date. Ordination candidates’ council The ordination candidates’ council fund relates to invested bequests, the income from which is to provide assistance to candidates training for the Anglican priesthood. First Lord Grimthorpe’s Trust The First Lord Grimthorpe’s Trust provides income for repairs to churches of the evangelical tradition within the Diocese of York. Local Trusts’ Stipend Fund The Local Trusts’ Stipend Fund relate to specific investments, the income from which is to augment stipends. Diocesan Parsonage Board The Diocesan Parsonages Board holds houses which are used to accommodate certain office holders who do not have incumbent status. Benefice Building Fund The Benefice Building Fund holds proceeds from parsonage sales pending replacement of the property. Any surplus remaining after purchase of a new benefice house or following Pastoral Reorganisation is transferred to the Pastoral Account subject to the consents set out in the Church Property Measure.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

22. DESCRIPTION OF FUNDS (continued)

Faith in Education Fund	The Faith in Education Fund aims to pioneer links between churches and schools in Hull by
	contributing creatively toward addressing problems particularly at secondary level of poor
	attainment, low aspirations and falling rolls.
Mission Support Fund	The Mission Support Fund relates to donations for projects in Hull and Middlesbrough.
Bishops’ IT	Bishop’s IT is a central allocation by the Church Commissioners for Bishops’ information
	technology needs.
Ministry Fund	The Ministry Fund represents donations from private individuals and grant awarding trusts
	to support specific ministry posts in the diocese.
Wydale Hall	Wydale Hall is a special restricted fund and operates as a conference and retreat house
	primarily for the benefit of the Church of England. In event of a sale of the property the
	proceeds would have to be applied either in the purchase of another property to be used
	for the same purposes or invested and the resultant income applied for the promotion and
	holding of retreats and of religion. Its sole trustee is the York Diocesan Board of Finance
	Limited.
Diocesan Board of Education	DBE funds are restricted in accordance with the Uniform Statutory Trust legislation. The
	funds are proceeds from site disposals, donations and income from educational services and
	can be used to support Church Schools. The income can be used by the DBE to fund the
	provision of services to schools. Capital and income can also be used to assist with school
	building projects.
Learning to Lead Religious	This represents donations from specific organisations to cover direct costs
Education	of supporting the development of religious education.
Resourcing Ministerial	Funding from Ministry Division specifically for ordinand training.
Education
Strategic Capacity Funding	Funding from Archbishops Council for specific activities relating to the renewal and reform
	agenda.
Multiply (20s-40s)	Strategic Development Funding from the Church of England Strategic Investment Board
	awarded for the establishment of new worshipping communities for the 20 to 40 age range.
Restructuring	Funding from the Church of England Strategic Investment Board to be drawn down for use
	on projects that will support increased financial sustainability and resilience.
Longhill	Grants and donations restricted for use within the Longhill BMO.
Kingswood	Grants and donations restricted for use within the Kingswood BMO.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year end 31 December 2020

23. CAPITAL COMMITMENTS

At 31 December 2020 the YDBF had capital expenditure commitments authorised but not contracted for of £nil (2019 - £nil), and contracted for but not yet due of £nil (2019 - £nil).

24. CONTINGENT LIABILITIES

There are no contingent liabilities at the balance sheet date.

25. PENSIONS

The DBF participates in two pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the DBF and the other participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy. The other is the Church Workers Pension Fund .

These schemes are multi-employer last man standing defined benefit pension schemes for which the DBF is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the scheme. For multi-employer schemes where this is the case, paragraph 28.11 of FRS102 requires the DBF to account for pension costs on the basis of contributions actually payable to the scheme in the year and, where contributions are affected by a surplus or deficit in the scheme, to disclose information about the surplus or deficit and the implications of the surplus or deficit for the DBF. A valuation of each scheme is carried out once every three years.

Church of England Funded Pension Scheme

York DBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

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 as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions (see below).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

• An average discount rate of 3.2% p.a.;

• RPI inflation of 3.4% p.a. (and pension increases consistent with this);

• Increase in pensionable stipends of 342% p.a.;

• Mortality in accordance with 95% of the S3NA_VL tables, with allowance for improvements in mortality rates in line with the CMI 2018 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% pa.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

25. PENSIONS (continued)

Church of England Funded Pension Scheme (continued)

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions payable (as a percentage of pensionable stipends) are as set out in the table below.

	January 2018 to	January 2021 to
	December 2020	December 2022
% of pensionable stipends
Deficit repair contributions	11.9%	7.1%

The deficit recovery contributions under the recovery plan in force as at 31 December 2018, 31 December 2019 and 31 December 2020 were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance

Balance sheet liability as at 1 January Deficit contribution paid Interest cost (recognised in SOFA) Remaining change to the balance sheet liability* (recognised in SOFA) Balance sheet liability as at 31 December	2020 £'000 1,164 (542) 10 29 661	2019 £'000 3,818 (565) 74 (2,163)
		1,164

• Comprises change in agreed deficit recovery plan, and change in discount rate and assumptions between year-ends.

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Rates at 31 December:	2020	2019	2018
Discount rate	0.2%pa	1.1%pa	2.1%pa
Price inflation	3.1%pa	2.8%pa	3.1%pa
Increase to total pensionable payroll	1.6%pa	1.3%pa	1.6%pa

The legal structure of the scheme is such that if another Responsible Body fails, York DBF could become responsible for paying a share of that Responsible Body’s pension liabilities.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

25. PENSIONS (continued)

Church Workers Pension Fund

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

The YDBF and Wydale Hall participate in both the Defined Benefits Scheme section and the Pension Builder Scheme section of the CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

The Church Workers Pension Fund Defined Benefit Scheme has been closed to future accrual with effect from 31 March 2018. Members of that scheme who remain in employment by the Diocese of York have joined the Pension Builder Classic scheme. The decision to close the scheme and the determination of future pension arrangements followed a consultation with members.

For funding purposes, the DBS is divided into sub-pools 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 mortality and post-retirement investment returns.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of 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 premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the scheme’s assets and liabilities to specific employers, since each employer, through the Life Risk Pool, is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. This means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs of the DBS charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year ( 2020: DBF £nil and Wydale £nil ; 2019: DBF £nil and Wydale £nil), plus any impact of deficit contributions (see below.

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool and the Actuary so recommends, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board on the advice of the Actuary.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

25. PENSIONS (continued)

Church Workers Pension Fund – Defined Benefits Scheme (continued)

A valuation of the DBS is carried out once every three years, the most recent was carried out as at 31 December 2016. In this valuation, the Life Risk Section was shown to be in deficit by £2.6m and £2.6m was notionally transferred from the employers’ sub-pools to the Life Risk Section. This increased the Employer contributions that would otherwise have been payable. The overall deficit in the DBS was £26.2m.

A valuation as at 31 December 2019 was under way as at 31 December 2020. The contributions agreed at that valuation will be reflected in the figures disclosed in the 2021 accounts.

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay expenses of £8,200 per year in respect of YDBF and £2,000 per year in respect of Wydale Hall. In addition deficit payments of £66,365 per year for YDBF and £13,001 per year for Wydale hall have been agreed for 7 years from 1 April 2018 in respect of the shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer’s financial statements.

Balance sheet liability as at 1 January Deficit contribution paid Interest cost (recognised in SOFA) Remaining change to the balance sheet liability* (recognised in SOFA) Balance sheet liability as at 31 December	2020 2019 2020 2019 £'000 £'000 £'000 £'000 340 390 67 76 (66) (66) (13) (13) 3 7 1 1 6 9 1 3 283 340 56 67 YDBF Wydale	2020 2019 £'000 £'000 407 466 (79) (79) 4 8 7 12 339 407 Total	2020 2019 £'000 £'000 407 466 (79) (79) 4 8 7 12 339 407 Total
			407

• Comprises change in agreed deficit recovery plan and change in discount rate between year-ends.

The liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:

			2020	2019	2018
Discount rate at	31	December	0.4%pa	1.3%pa	2.1%pa

The legal structure of the scheme is such that if another employer fails, York DBF could become responsible for paying a share of that employer’s pension liabilities.

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2020

25. PENSIONS (continued)

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. The York Diocesan Board of Finance only offers Pension Builder Classic to its employees.

Pension Builder Classic provides a pension for members for payment from retirement, 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 from time to time. Discretionary increases may also be added, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members' Normal Pension Age.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable (2020: DBF £235,536 and Wydale £11,516; 2019: DBF 208,791 and Wydale £11,277).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020

For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, York DBF could become responsible for paying a share of that employer’s pension liabilities

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

STATEMENT OF THE FINANCIAL ACTIVITIES For the year end 31 December 2020

26. PRIOR YEAR COMPARATIVE SOFA

Note Income and endowments from Donations 2 Parish contributions Archbishops' Council Other donations Charitable activities 3 Other activities 4 Investments 5 Other 6 Total Expenditure on Raising Funds 7 Charitable activities General charitable activities 8 (Gains) on clergy pension scheme 25 Total Net income/(expenditure) before investment gains and losses Net gains/(losses) on investments 20 Net income Transfers between funds 13 Net movement in funds Total funds brought forward Total funds carried forward 20	Unrestricted funds £'000 8,098 1,905 260 958 207 1,190 724 13,342 220 12,131 (2,163) 10,188 3,154 1,223 4,377 (2,825) 1,552 13,377 14,929	Restricted funds £'000 - 339 3,223 715 - 2 758 5,037 - 1,734 - 1,734 3,303 228 3,531 (238) 3,293 6,991 10,284	Endowment funds £'000 - - - - - - 1,170 1,170 - - - - 1,170 1,564 2,734 3,063 5,797 69,410 75,207	Total funds Total funds 2019 2018 £'000 £'000 8,098 8,236 2,244 2,148 3,483 664 1,673 1,648 207 205 1,192 1,099 2,652 947 19,549 14,947 220 173 13,865 13,381 (2,163) (72) 11,922 13,482 7,627 1,465 3,015 (770) 10,642 695 - - 10,642 695 89,778 89,083 100,420 89,778

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THE YORK DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2019

27. RELATED PARTY TRANSACTIONS

Having made enquiries, the directors are not aware of any related party transactions in 2020 (2019 : £nil) other than the grant paid to The Diocese of York Educational Trust detailed in note 28.

28. SUBSIDIARY

The Diocese of York Educational Trust (DYET) was incorporated in February 2012. The Trust has seven Trustees; three appointed by the Diocesan Board of Education, three appointed by the Archbishop and the Diocesan Director of Education on an ex officio basis. The Trust is therefore deemed to be controlled by the York Diocesan Board of Finance Limited. The financial results for the Trust have not been consolidated into these accounts on the grounds of materiality. The Objects of DYET are to advance for the public benefit education in the Diocese of York or elsewhere, in particular but not exclusively, by:

• promoting the efficiency and effectiveness of Educational Institutions and the efficient and effective application of resources for such purposes including by promoting and disseminating models of good practice and by the delivery of support services generally to such institutions;

• advancing the education of people who work or volunteer in or govern Educational Institutions in order to assist those persons to deliver a high quality education to the pupils and to communities served by those institutions;

• establishing, sponsoring and maintaining Academies (primarily but not exclusively Church of England Academies) under the direction of the Diocesan Board of Education.

The YDBF made a grant of £1,500 to DYET during 2020 (2019: £4,500).

29. FUNDS HELD AS CUSTODIAN TRUSTEE

The YDBF acts as Diocesan Authority or custodian trustee for many trust funds 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. Assets held in this way are not aggregated in these financial statements as the YDBF does not control them. The financial assets held in this way may be summarised as follows:

CBF Church of England Investment Fund CBF Church of England Fixed Interest Fund CBF Church of England Property Fund shares COIF income and accumulation shares Other common investment fund holdings CBF Church of England Deposit Fund Cash at bank Total assets held as custodian trustee	2020 2019 £'000 £'000 3,916 3,784 232 223 31 33 338 323 8,246 8,033 1,633 1,627 232 88 14,628 14,111

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