**The York Diocesan Board of Finance Limited** 

**Annual Report & Financial Statements for the year ended 31 December 2021** 


**Company Registration Number: 225234 Charity Registration Number: 244976** 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

|**TABLE OF CONTENTS**|**Page Number**|
|---|---|
|Legal Objects|3|
|Core Purpose|4|
|Strategic Report:||
|Strategic Aims|4|
|Activities and Achievements in the year|5|
|Future plans|12|
|Financial review|13|
|Principal risks and uncertainties|17|
|Structure and Governance|18|
|Trustees’ Responsibilities|23|
|Administrative details|24|
|Independent Auditor’s Report|26|
|Statement of Financial Activities|29|
|Income and Expenditure Account|30|
|Balance Sheet|31|
|Cash Flow Statement|32|
|Notes to the Financial Statements|33|



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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

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 2021. 

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 and under the provisions of the Church Property Measure 2018; 

- 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 Boards of Education Measure 2021; 

- 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 consultation with Deanery Synods and PCCs, and the Archbishop of York (in respect of his responsibility for the provision of the cure of souls) who takes counsel with the Archbishop’s Council and the York Diocesan Leadership Team. 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 2021** 

## **CORE PURPOSE** 

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. 

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. 

## **STRATEGIC AIMS: LIVING CHRIST’S STORY** 

Following a consultation with the Deaneries, in November 2020 the Diocesan Synod approved a renewed statement of strategic priorities to underpin a 10 year plan to support individual congregations to grow both numerically and spiritually. It is this growth, both in membership and in the financial contributions made by those attending, that will provide the sustainability needed to secure their on-going mission and ministry for generations to come. 

The key areas of focus, as we seek to be a family of worshipping communities who are “Living Christ’s Story” are: 

- Becoming more like Christ 

- Reaching people we currently don't 

- Growing churches of missionary disciples 

- Transforming our finances and structures 

Following further extended consultation with the parishes in the first half of 2021, a framework for Deanery level deployment planning has been developed. This framework was adopted by Diocesan Synod in January 2022. Work then got underway on Deanery Level Mission & Ministry planning. 

Following some key staff movements, the outcomes of the consultation provided input into the Diocesan Leadership Team’s proposals to the Board for a restructuring of our activities in the area of Mission and Ministry into a new single team under the leadership of a single senior staff member. This will facilitate greater collaboration between those supporting the parishes in the first 3 priority areas as well as leveraging the “ripple effect” envisaged in the externally funded Multiply and Mustard Seed programmes, to benefit churches and communities more widely in the diocese. 

Dr Ian McIntosh joined the diocese in September 2021 as Director of Mission & Ministry. The restructured Mission & Ministry function will bring together those involved in 

- the deepening of discipleship and the nurturing of lay and ordained vocations; 

- equipping lay and ordained for ministry and leadership; 

- the largely externally funded Multiply and Mustard Seed programmes that seek to raise up local leadership and new worshipping communities in those places where we have historically not reached as many people as we would hope to: those living in places where life is tough and those who are in their 20s-40s. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

Further details about activity in these areas can be found on pages 9 & 10 

Recruitment will continue to the Mission & Ministry team during the Spring of 2022, and the team will work closely with others who are supporting the key areas of focus listed above, including those supporting our work in Growing Faith, Generous Giving and Sustainable Churches. 

A significant outcome sought from the 10 year plan is the transformation of our finances and structures. The overwhelming majority of PCCs do not cover the cost of ministry provided and, whilst investment returns have held up in recent years, it would not be prudent for the DBF to plan for year on year increases in operating deficits. This transformation therefore begins at parish level, where even discounting the adverse financial effect of Covid, only a minority of PCCs have been able to increase their Freewill Offer to the diocese in line with inflation. 

As well as offering support via the Generous Giving Team, significant effort has been made to communicate the complexities of the DBF’s finances to the parishes and to quantify the variance between the Free Will Offer pledged and the actual costs of ministry and other support being provided to groups of congregations under the oversight of a single ministry team. This analysis has been made available to Deanery Leadership Teams to support their local planning which will form the core of a sustainable ministry deployment plan to be implemented over the next 3-5 years. 

The deanery and parish consultations have confirmed that there is a significant issue around parish administration and its impact on clergy and lay members. As well as identifying areas where additional support would be welcomed, it was recognised that some areas of current engagement between the parishes and Diocesan Office would benefit from a review. Such a review will be commissioned by the Board during the summer of 2022. 

The DBF approved a proposal from the Diocesan Leadership Team that the diocese should seek Strategic Capacity Funding (SCF) from the Archbishops’ Council Strategic Investment Board in order to appoint a full time Director for Strategic Transformation to oversee the detailed implementation of the Living Christ’s Story plans. The Archdeacon of York was seconded full-time from November 2021 to May 2022 to work on the bid and coordinate the planning for the Deanery Planning phase of the programme. It was confirmed at the end of February 2022 that the bid had been successful. It will facilitate additional project management capacity (which will also support the development of a Carbon Net Zero plan for the diocese) and fund strategic development work in the area of Discipleship, Digital Engagement and Data Analysis. 

## **ACTIVITIES AND ACHIEVEMENTS IN THE YEAR** 

Alongside progressing the strategic planning process, there has continued to be a significant focus on other key areas of activity which either support the strategic goals 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. 

- 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. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

The **Coronavirus Pandemic** has continued to have 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, although the restrictions placed on services such as weddings and funerals were not as severe as in 2020, the need to reduce capacity for in-person services and the general health concerns of the population have led to a continued pattern of on-line worship in many places. Although this now sits alongside in-person services, attendances in church have remained below 2019 levels in the majority of cases and the evidence is that voluntary giving to parishes is significantly reduced. 

DBF staff continued to work from home for most of the year, in line with government guidance. As the Government’s Coronavirus Job Retention Scheme (CJRS) was wound down, and Diocesan Office was re-opened, staff were invited to discuss patterns of working that would continue to allow some personal flexibility on location. 

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). Whereas in 2020, parochial contributions to the Common Fund via Free Will Offers, held up remarkably well, often through use of PCC reserves to honour pledges made, York saw a significant downturn in the levels of Free Will Offers being met in 2021. As a result, the Board applied for a Sustainability Grant from the Archbishops’ Council Strategic Investment Board and were awarded a contribution of £620,000 towards the income shortfall. 

## **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 again reduced in 2021 (final numbers not yet submitted) but funeral ministry continued throughout the 2021. 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 FTE at 28 Feb 2022 with 20 FTE 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 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 13%. 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. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## **Safeguarding** 

The work in this area continued to be overseen by the Strategic Safeguarding Group (SSG), independently chaired by Professor Sue Proctor (until February 2022), 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 2021, in addition to supporting national workstreams, providing advice and support to parishes, managing core groups and managing a casework load, the team has continued to support the roll out of the Church of England Safeguarding Learning & Development Framework and the implementation of further changes in the House of Bishops Safeguarding guidelines, post IICSA. The Safeguarding Advisors continued to experience high levels of activity, alongside facilitating further external scrutiny of the handling of Safeguarding issues in the Church of England. 

One of the commitments made by the Church of England to the Independent Inquiry into Child Sexual Abuse (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 Past Care Review (PCR) which had a narrower remit. This review (PCR2) of over 1800 files required significant resourcing, both in terms of staff time and the funding of a team of external reviewers. Progress was hampered due to the lockdowns which made it hard to access the files, but the work was finally completed in the autumn. The review was supported locally by the Diocesan Safeguarding Advisors and overseen by a panel chaired by a representative of one of our statutory partners. The outcomes for each diocese are due to be reported in Spring 2022. 

A new initiative, designed to raise awareness and provide additional opportunities for learning and development, was our first Diocesan Safeguarding Week which took place in November. A total of 465 people attended 24 separate events, all but one of them delivered via Zoom. The sessions were delivered with the support of a number of external partners including the Police and Survivor support charities and were so successful that plans are underway to make this an annual event. 

A significant amount of resource continues to be committed to providing training to licensed and authorised ministers, church officers and church members. During the lockdowns all of the previously face to face training was delivered online. 

Despite the challenges this presented to both trainers and attendees, in the course of 2021, 366 individuals attended the new mandatory two session Safeguarding Leadership training for licensed and authorised ministers (2020: 253), with a further 243 attending the specialist Domestic Abuse and Safer Recruiting training modules (2020: 131) and 88 accessing the new e-learning versions of these modules. The updated foundation and basic e-learning courses were completed by over 1375 individuals (2020: 675). Additional Leadership Pathway options for Parish Safeguarding Officers and PTO Clergy were introduced during the year. These courses will be fully rolled out in 2022 but 40 people have attended to date. 

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

The Diocesan Safeguarding Advisor is responsible for reporting any issues that meet statutory thresholds. She is in close contact with the relevant authorities and has ensured that any incidents relating to PCCs or the DBF that meet the threshold for reporting to the Charity Commission have been submitted. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**ANNUAL REPORT** 

**For the year ended 31 December 2021** 

## **Working with Children & Young People in Schools and Parishes** 

The Education and Children and Youth team has operated at full strength during 2021. Some staff were again 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. 

The Diocesan Boards of Education Measure (2021) became law in April 2021 and requires each Diocesan Synod to make a Scheme to designate the DBE for the Diocese. The Measure sets out various different permissible structures for a DBE, specifically an incorporated DBE, an unincorporated DBE or a DBE which is a statutory committee of the Diocesan Board of Finance (DBF). It has been proposed that a DBE that is a statutory committee of the DBF is the closest to the current position in the Diocese of York. Under this structure, the DBF is designated as the DBE but is required by the Measure to delegate its functions to the DBE statutory committee under the Scheme. The DBF is not able to exercise any of the functions delegated to the DBE statutory committee except in exceptional circumstances. 

It is anticipated that the DBE will become a statutory committee of the DBF in June 2022. The preparation of the Scheme, Terms of Reference and general guidance have been prepared in 2021 and will progress through the DBE, DBF and Diocesan Synod in an agreed timetable during the Spring of 2022. 

Much of our work with Children, Youth and Schools in 2021 focused on supporting homes, schools and churches aligned with the strategic vision of the Diocesan Board of Education (DBE). This is seen within the diocesan vision of Living Christ’s Story and the national work set out within Growing Faith. Due to the ongoing pandemic, parish and schools work in 2021 continued to focus on resourcing schools and churches to provide support for the household as gathering in schools and churches were restricted at different periods and there was a reluctance to return to meeting as ‘in person’ groups. These included activities within the yearlong Children of Light Festival – a virtual introductory service, mini pilgrimages, Teddy Bears Picnic, Muddy Church, and Parenting for Faith. Family Calendars were again 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 based on the Lord’s Prayer. 

As for schools, 124 Church schools bought into the new two-year Service Level Agreement provided by the Education team. This promotes the strong working relationship with Church schools in developing their Christian vision as well as increased income into the diocese. 

At the beginning of 2021 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 MATs merged in 2021 and there was increasing interest from Governing Bodies in exploring conversion to academy status. 

Small school viability continues be a challenge for the DBE. The DBE engaged with MATs, Local Authorities and the Department for Education (DfE) on possible school closures throughout 2021. This will see the closure of one academy in 2022 and may impact on other schools in the near future. 

The diocese continues to be held accountable to the DfE 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. No Ofsted or SIAMs inspections were undertaken in the bulk of 2021 due the pandemic. By the year-end, 107 (86%) of the diocese’s schools and academies were rated ‘Good’ or ‘Outstanding’ by Ofsted and under the statutory system for denominational inspection (SIAMS), 123 (98%) of schools were rated ‘Good’ or ‘Outstanding/Excellent’. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## **Nurturing of lay and ordained discipleship, vocations and equipping for lay and ordained ministry** 

We continue to invest in nurturing vocations in the Diocese, with 31 ordinands in training (at 31 March 2022) of whom 15 commenced training in September 2021; a number of these are under 32 and there is a good gender-balance. Furthermore, 17 candidates attended Bishops’ Advisory Panels (BAPs) in the 2021/22 selection year, and we continue to have a number of other candidates in the discernment pipeline. 

This activity was against the backdrop of the long term absence of the Diocesan Director of Ordinands during 2021. We are indebted to the Revd Canon Nick Bird who stepped in as Acting DDO in addition to his parish duties. We continue to offer bespoke support for those exploring or engaged in diaconal ministry, including our conferences for deacons which attract 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. YSOM runs the Recognised Parish Assistant training programme in a number of locations around the diocese and, in addition, offers a number of introductory courses aimed at a wider audience, including, for example, Children’s and Youth workers, Churchwardens and church administrators. It also works in partnership with St Hild’s College to support ordination training by contributing to the Yorkshire Theological Education Partnership. 

For most of the year YSOM operated all its learning and teaching via online platforms, with excellent feedback from the students and, despite the ongoing pressures of Covid, has c.125 students registered in the current academic year. Face to face teaching was reintroduced in the autumn term but, going forward, learning will be facilitated both on line and in person, as appropriate to the content. It is anticipated that, over time, this will both widen access and reduce our carbon footprint. 

As noted earlier, a number of the Training team retired or moved in the course of 2021. As a result the programme of continuing ministerial education for Readers and clergy was scaled back pending a review of provision for lifelong learning. A number of online events and retreats were however still offered in the course of 2021. 

Following the almost year-long closure in 2020, Wydale Hall, reopened to the extent permitted under government restrictions for residential conference venues. Bookings have continued to be affected by Covid, but the team at Wydale have adapted well and the visitor feedback has been very positive. A full programme is in place for 2022 and provision has been made to allow remote participation in events as we continue to adapt to living with Covid. We continue to be grateful for some 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 as visitors have been able to be back on site. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## _**MULTIPLY - New Worshipping Communities for 20s-40s**_ 

At the time of the last report the launch of new worshipping communities were being frustrated by the national lockdowns and other restrictions necessitated. 

Some of the embryonic groups used digital technology to meet and have seen growth in their virtual communities, but in other cases the team 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 – whilst waiting to gather in person with the fledgling new worshipping communities. 

The relaxation of restrictions has seen the work begin again in earnest, with new services launched and growing numbers in all of the current Multiply locations. The Hull St Nicholas location will finally launch in 2022, the start date delayed due to the absence of the incumbent for a period of time, followed by the Multiply Minister’s maternity leave. Two Multiply Ministers (Drypool and Brayton) have moved to new posts (one outside the diocese) and in both cases the decision has been not to reappoint to those locations, but to reinvest the stipends saved (with the consent of the Strategic Investment Board) to fund the remaining locations for an additional year to compensate for the impact of Covid and maximise the potential for achieving sustainability for the longer term. 

Multiply is also seeking to support the engagement of locally employed lay people via its seedcorn Growth Fund. Despite the pandemic, a further 7 projects got underway during 2021 to add to the 2 that started in 2019 and 6 in 2020. The team are working with a number of other locations and have two further projects ready to start in the first half of 2022. A significant amount of work is being undertaken to support the emerging leaders and particularly to support them as they evaluate their future plans in the light of the challenges of the last 18 months. 

## _**MUSTARD SEED – Growing disciples in places where life is tough**_ 

The Trustees remain grateful to the Benefact Trust (formerly Allchurches Trust) who agreed that their block grants to York Diocese for 2019-21 could be designated to create a fund to meet the costs of the Mustard Seed Programme Lead and the development costs of the Stepping Up learning and development programmes. 

As at March 2022, the first two Stepping Up cohorts have just completed their programmes and a further six cohorts are underway. This expansion of the work has been possible because of the Church of England Strategic Investment Board funding (granted in 2020 to be called down over a 6 year period) and the successful appointment of a full team which was completed in March 2021. 

To date 41 people have started Stepping Up, supported by 27 volunteer mentors. 28 parishes have signed members up to take part and further cohorts are planned to start in 2022 to meet the demand. 

All those who are part of Stepping Up have been working in their local communities, either pioneering new forms of mission or supporting existing work in the parishes. That work has borne fruit with 129 new people engaging with some form of worship in those places and 18 adults coming forward for Baptism. Those who have completed their initial training and want to continue in some form of lay leadership, are being commissioned as Multiply Community Ministers and will become part of a network for ongoing support and learning & development, 

A new website has been created (www.mseed.org) to support the work, and particularly to raise awareness as the team begin to recruit Ambassadors, a key element of the next phase of the development of the work; people from across the Diocese who have a passion to support mission in our poorest communities and who come alongside and are able to build a supportive relationship with and commitment to a Mustard Seed church and its community. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## **Wider service and partnership in communities experiencing social need 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 2021 in supporting a number of projects, for example by providing facilities to Westway Open Arms (Scarborough) which serves the Eastfield Estate in Scarborough, and St Margaret’s Welcome Centre (Longhill Estate, Hull) and funding the provision of ministry to the CofE parishes affiliated to Together Middlesbrough & Cleveland, a joint venture between the diocese and the Church Urban Fund, enabling those parishes to share their facilities and other resources in the support of those most in need within those communities. 

The Bishop of Hull holds the portfolio for our work in this area. The next bishop will be invited to continue to work with others 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 also to identify ways in which we can resource practical support for those who live and work in the areas of greatest social and economic deprivation in the diocese. 

## _**GENEROUS GIVING – supporting local financial sustainability**_ 

The team exists to support parish level financial sustainability (which in turn increases parish capacity to increase the level of contributions that they make to the Common Fund). Their primary area of work is around encouraging and developing personal generosity but they also seek to assist PCCs with other practical ways of increasing income and/or reducing expenditure. 

As reported last year, it had been hoped that the team would be able to run giving programmes across the diocese but due to the limitation on meetings and public worship, most churches postponed or cancelled their plans. As a result a decision was taken to furlough some members of the team whilst continuing to offer some support online including a series of well attended webinars. The team also piloted the Parish Giving Scheme (www.parishgivingscheme.org.uk/) as part of our support for local treasurers and growing regular PCC income. 

Two members of the team decided to leave for personal reasons earlier in 2021, leaving one member of staff who has continued to support clergy and treasurers through face to face engagement as well as provision of web-based resources and regular social media communications. Since the vacancies coincided with the exhaustion of the external grant that had supported the costs of the team, a decision was made to pause recruitment to review the objectives and team roles in the light of the restated strategic priorities and the creation of a national framework for Generous Giving. A successful application was made for national Stewardship funding which has enabled us to recruit a second advisor who will join the team at Easter 2022. 

A key objective of the new member of staff will be to support the roll out of PGS. Even without this resource, during the first year of operation the number of parishes using the scheme increased from 11 parishes and 87 givers to 29 parishes with 537 givers, of whom 86% Gift Aid and 55% have signed up to the inflationary increase. PGS currently processes c.£65,000 per month of gifts with an average weekly gift (at March 2022) of £27.83 (excluding Gift Aid), which is more than double the diocesan average weekly gift across all forms of regular giving of £10.10. 

Additionally, we have continued to provide membership of the Association of Church Accountants and Treasurers (ACAT) for all PCCs. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

## **FUTURE PLANS** 

Supporting parishes and communities as they recover from the impact of the Coronavirus Pandemic will continue to be a key priority for 2022, alongside progressing the mission & ministry planning with deaneries and parishes in the light of the restatement of diocesan priorities. 

Living Christ’s Story seeks to address the challenges of falling attendance, with a strong focus on numerical and spiritual growth, together with the need to restructure 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 phased reduction in Church Commissioners’ direct support for poorer dioceses that began in 2017. 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 continues to underpin this major undertaking as we seek 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 assumes a modest reduction in the number of remunerated posts together with an increase in the donor base to offset the reduction in the Church Commissioners grant and halt the reduction in real terms in parochial contributions to the Common Fund. 

It is anticipated that majority of the structural changes arising from the consultations will be implemented by the end of 2025, with resulting savings, increased investment income and the impact of growing congregations staring to come through in the following years such that by 2031 the recurring expenditure of the diocese can be met via regular and reliable sources of income. 

In addition, we expect to make progress with our commitment to diversity and inclusion as work of the newly created Racial Justice Working Group gets underway as well as the national aspiration that the CofE will achieve carbon net-zero by the end of 2030. Whilst still at the information gathering stage, it is clear that this will have significant financial implications for both parishes the DBF and so will be fully integrated into the work of the Director for Strategic Transformation 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

## **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 **£6,816,000** (2020: £7,338,000 and 2019: £8,098,000). Whilst current year contributions reduced by a further **£522,000,** given the circumstances of the year this represented another huge commitment on the part of PCCs to meet their pledges by all possible means. Based on submissions from parishes, the expectation is that, during 2022, Free Will Offers will recover to 2020 levels as parish income begins to recover, but it will be at least a further year before they return to pre-pandemic levels, due in no small part to the reduction in regular attendance in many churches coupled with the impact of energy inflation (particularly the price hike in standing charges) on local budgets. 

The overall net movement in funds in 2021 was **£7,918,000** (2020: £2,829,000). The significantly higher level in 2021 arising through gains on the sale of land and buildings and investment gains. Such exceptional items mask a larger underlying operational shortfall. 

|**2021**<br>**General**<br>**Designated**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**SOFA:**<br>Operational (shortfall)/gain<br>(2,068)<br>73<br>**(1,995)**<br>add back investment and property gains/transfers/exceptional items:<br>Covid related grant awarded in the year<br>620<br>-<br>**620**<br>Impairment of assets<br>-<br>-<br>**-**<br>Gain on sale of properties/closed churches<br>579<br>-<br>**579**<br>Clergy pension scheme deficit reduction<br>317<br>-<br>**317**<br>(552)<br>73<br>**(479)**<br>Investment gains/(losses)<br>1,341<br>-<br>**1,341**<br>Transfer between funds -other<br>500<br>**500**<br>Transfer between funds - property<br>(664)<br>-<br>**(664)**<br>Transfer between funds - pension<br>(317)<br>-<br>**(317)**<br>308<br>73<br>**381**<br>**Unrestricted**|**Restricted**<br>**£000**<br>(283)<br>-<br>-<br>-<br>-<br>(283)<br>127<br>(500)<br>5,856<br>-<br>5,200|**Endowed**<br>**£000**<br>-<br>-<br>-<br>4,339<br>-<br>4,339<br>2,873<br>(5,192)<br>317<br>2,337|**Total**<br>**2021**<br>**£000**<br>**(2,278)**<br>**620**<br>**-**<br>**4,918**<br>**317**<br>**3,577**<br>**4,341**<br>**-**<br>**-**<br>**-**<br>**7,918**|Total<br>2020<br>£000<br>(1,299)<br>-<br>(625)<br>566<br>503|
|---|---|---|---|---|
|||||(855)<br>3,684<br>-<br>-<br>-|
|||||2,829|



## _Unrestricted fund:_ 

The unrestricted general fund showed an excess of expenditure over income of **£479,000** before investment gains or transfers (2020: £537,000). However, if the gain on the sale of properties, a oneoff grant for covid support and the year end clergy pension scheme movements are excluded, there was an operational shortfall of £1,995,000 (2020: £908,000) which can be split into a **£2,068,000 shortfall** on general funds and a £73,000 increase in designated funds (2020: £1,009,000 shortfall on general funds £101,000 increase on designated). 

This shortfall was at anticipated levels, with Free Will Offer income £1,282,000 lower than in 2019. The DBF continued to seek efficiency savings and also took advantage of the National furlough scheme where appropriate receiving £94,000 of salary support payments (2020: £226,000). Whilst the budget anticipated reduced housing costs and reductions in travel and certain other activities, unanticipated additional vacancies, whilst operationally challenging, once again had a positive impact on the operating shortfall. 

The national Archbishop’s Council offered assistance to the dioceses most adversely affected by Covid and the DBF was successful in an application for a one-off Sustainability Fund grant to cover 50% of the Free Will Offer shortfall. A sum of £620,000 was received in December 2021. 

Page 13 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

A draw down from unrestricted reserves of up to **£1.7 million** (being £2.0 million less anticipated investment gains) was approved for 2022 by Diocesan Synod at its meeting in November 2021. 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 **£73,000** (2020: £110,000) 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 **£283,000** before investment gains or transfers (2020: £606,000 shortfall). 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 **£4,339,000** before non property related investment gains or transfers (2020: £288,000 surplus). This related to gains arising following the sale of various properties. 

The excess of income over expenditure across all funds amounted to **£3,577,000** compared with a £855,000 shortfall in 2020. 

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 £4,341,000 (2020: £3,684,000 gain) increased the net total income for the year to **£7,918,000** compared with an overall increase in funds of £2,829,000 in 2020. Out of this net income various transfers were made between funds, as detailed in note 13. 

## **Significant Property Transactions** 

There were a number of property sales and purchases during 2021 as the 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 

£1 million of land and buildings were purchased during the year compared to £nil in 2020 and offers were accepted to purchase a further 3 properties totalling £1.3million, however these did not exchange before the end of the year. During the year, the Diocese disposed of former clergy housing with a total book value of £1.3 million realising net sales proceeds of £6.3 million and a gain on sale of £4.9 million. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

Glebe land, which is included within investments, was disposed of for £200,000 (2020: £1.4 million), representing a loss on sale of £11,000 (2020:£1.3million gain). The large gain in 2020 principally resulted from the sale of a single small plot of grazing land with planning permission to a developer. 

## **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 **£111,167,000** (2020: £103,249,000) it must be noted that included in this total are properties, mostly in use for the ministry, whose net book value amounted to **£48,391,000** (2020: £48,723,000). Much of the remainder of the assets shown in the balance sheet are 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 2021 the amount required under this policy totalled **£4.9m** (2020: £4.9m). Actual free reserves as at 31 December totalled **£9.4m** (2020 £9.0m), which is equivalent to just over 7.6 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 2022 (which includes the fourth 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 £14,311,000 of which £4,903,000 are tangible fixed assets. 

## _Restricted and endowment funds_ 

As set out in notes 20 to 22, YDBF holds and administers a number of endowment and restricted funds. As at 31 December 2021 endowment funds totalled £80.1m (2020: £77.7m) and restricted funds totalled £16.4m (2020: £11.2m). The capital in the endowment funds is not available for the general purposes of the YDBF. The majority of the restricted funds relate to property or to national funding relating to the Multiply programme. The Pastoral Account, as set up under the Pastoral Measure, is technically restricted and shown as such in the annual accounts. However, once obligations under the Measure are met, its purposes do allow funds to be transferred to the Stipends Capital Endowment fund or to be used for other purposes at the discretion of the Board. Further details are given in note 22. The sustainability model for Living Christ’s Story assumes that, over the next five years, some of the transfers to the Pastoral Account (from further planned asset disposals) will continue to be drawn down to help finance the period of transition to new patterns of ministry resourcing, with the remainder retained and invested for income to support stipends. 

Page 15 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

## **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. 

Even allowing for the anticipated continuing 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 2021 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 CPIH 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<br>CBF Investment Fund<br>CBF Property Fund<br>CBF Deposit Fund<br>Smith & Williamson Managed|Funds at 31<br>December<br>2021<br>Proportion<br>of Portfolio<br>Income yield<br>in year<br>Total Return<br>in year<br>£'000s<br>14,711<br>39.1%<br>2.93%<br>17.4%<br>1,655<br>4.4%<br>5.03%<br>19.74%<br>569<br>1.5%<br>0.05%<br>0.05%<br>20,710<br>55.0%<br>1.7%<br>15.4%<br>37,645<br>100.0%|
|---|---|



Page 16 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

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

## **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 for the Company; 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: 

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

   - Compulsory training is provided to all relevant staff; 

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

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

2. 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 principally by the Director for Strategic Transformation and the Director of Mission & Ministry, are responsible for ensuring that the demands being placed on parishes are being coordinated and accompanied by appropriate levels of support and training. 

3. 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, adverse investment conditions or reduction in funding from the Church Commissioners. The mitigating controls are: 

Page 17 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

- 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; 

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

- 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 policies 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. 

In addition, the Trustees are keeping a number of potentially significant extraordinary expenditure under close review. They will be factored into the ten year forecasts and the annual budget continues to allow for a contingency sufficient to cover immediate unanticipated costs. The areas being monitored for additional extraordinary and/or significant costs that would place financial pressures such that a reduction in core activities may become necessary include: 

- Wydale Hall - Additional costs arising from non-insurable unanticipated shutdowns. Inability to cover the cost of major roof repairs from normal operating surpluses, requiring additional capital funding from YDBF reserves. 

- Pensions – Fund liabilities increasing beyond currently forecasted levels. 

- Safeguarding – Uninsured compensation payments for historic cases. Additional resource costs for compliance with legislation or House of Bishops Regulations. 

- Carbon Net-Zero – the costs of achieving net-zero for DBF assets, support for parishes in achieving net-zero (including grants and impact on Free Will Offer), ongoing offsetting levies. 

In additional to the fiscal policies identified in (3) above, close contact is maintained with the National Church Institutions and other dioceses to facilitate collaborative approaches to influence legislative changes that may lead to increased cost and seeking additional national funding streams to mitigate the impact of significant additional mandatory expenditure. 

## **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 

Page 18 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

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 partner with) neighbouring Dioceses and the National Church Institutions. 

## **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 

Page 19 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

- 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 

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: 

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

- Approving the Management Accounts; 

- 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; 

- Reviewing and giving first stage approval to the budget; 

- 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. It also oversee the work of diocesan staff in relation to the management of church buildings that have been closed for regular worship, pending their disposal. 

Page 20 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## **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 Matters** 

During 2021, Diocesan Synod, the DBF and most Boards and Committees continued to meet using Video Conferencing. The elected Trustees concluded their three year term on 31 December 2021. Following elections to Diocesan Synod and Archbishop’s Council, the new term of office for those elected to serve as Trustees of the DBF commenced on 1 January 2022. Newly elected members are due to receive Trustee Training, including reference to the 2017 Charity Governance Code (produced by the Good Governance Group), at its first residential meeting. 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. 

## **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 members of Boards, Committees and Working Groups – for each of them just a part of the practical outworking of what it means to be “Living Christ’s Story”. 

## **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 

Page 21 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

from the YDBF’s own assets by means of separate bank and investment accounts. The market value of funds held as custodian amounted to **£16,804,000** at 31 December 2021 (2020: £14,628,000). 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 2021 is **£116,000** (2020: £146,000). 

## **OTHER RELATED PARTIES** 

The Diocese of York Educational Trust, which acts as a member of Academy Trusts and Multi-Academy trusts on behalf of the YDBF (the DBE being unincorporated) is a related party. 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. 

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. 

Although the following are not 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. 

- 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. 

- Together Middlesbrough and Cleveland, a charitable company limited by guarantee, which exists to work in partnership with Christian based charities in the north of the diocese for the relief of hardship and the wellbeing of those in need. YDBF is a member, alongside the Church Urban Fund, but receives no benefit and does not make any financial contribution. 

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**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**For the year ended 31 December 2021** 

## **ANNUAL REPORT** 

## **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 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. 

Page 23 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**ANNUAL REPORT** 

## **For the year ended 31 December 2021** 

## **ADMINISTRATIVE DETAILS** 

## **Trustees** 

No Trustee had any beneficial interest in the company during 2021. The following Trustees were in post at the date of this report (those who served for some of 2021 are shown in _italics_ ): 

Ex-officio: Chair– Mr C R Barton The Dean of York – The Right Reverend Jonathan Frost (resigned 18 January 2022) The Archbishop of York – The Most Reverend & Right Honourable S Cottrell 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 (resigned 28 February 2022) The Archdeacon of Cleveland – The Venerable A Bloor 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 (resigned 6 September 2021) The Reverend R Walker (appointed 21 October 2021) Elected by: Synod House of Clergy The Reverend FR Mayer-Jones The Reverend NWR Bird (term ended 31 December 2021) The Reverend RC Carew (term ended 31 December 2021) The Reverend M J Proctor (term ended 31 December 2021) The Reverend E Hassall (appointed 1 January 2022) The Reverend R Lumley (appointed 1 January 2022) The Reverend Canon S Sherriff (appointed 1 January 2022) Synod House of Laity Miss KM Banks Dr NA Burgess Mrs CS Gilderdale (resigned 31 July 2021) Mr D Brookes (term ended 31 December 2021) Mr AM Hagon (term ended 31 December 2021) Canon R Liversedge (term ended 31 December 2021) Mr RH Nihill (term ended 31 December 2021) Mr MO Stallybrass (term ended 31 December 2021) Mr D Millican (appointed 1 January 2022) Canon RPA Brewer (appointed 10 February 2022) Dr G Boag-Munroe (appointed 10 February 2022) Dr D Craven (appointed 10 February 2022) Dr G Parr (appointed 10 February 2022) Dr T Scott (appointed 10 February 2022) Co-opted by the Archbishop Canon RPA Brewer (term ended 31 December 2021) Reverend MJ Porter (term ended 31 December 2021) Mr B Hudson (term ended 31 December 2021) 

Page 24 



THE YORK DIOCESAN BOARD OF FINANCE LIMITED
ANNUALREPORT
For the year ended 3IDe￿Mber 2021
Senlor staff and advlsers
Diocesan Secretary & Chief Executive
Director of Finance
Dirertor of Education
Director of Communications & Parish Resourcing
Director of Making & Nurturing Disciples
Director of Training for Mlssional Ministry
Director of Mission & Ministry
As515tant Dio¢e5an Secretary
Canon Pl Warry
Mrs K Rose
Mr AK Smith
Mr M Sheppard
The Revd R White (resigned 14 June 20211
The Revd Dr GT Wakefield (resigned 31 August 20211
The Revd l Mclntosh lappointed 31 August 20211
Ms SA Davie5
Re8lStered Office-
Di0￿Se of York, Amy Johnson Way, Clifton Moor, York Y030 4
Bankers
Barclays Bank PLC, 1-3 Parliament Street, York, YOI 8SE
Auditors
haysmaclntyre LLP, 10 Queen Street Place, London, EC4R IAG
Solicitors
Lupton Fawcett LLP, Stamford House, Piccadilly, York, YOI 9PP
Investment advisers
CCLA Investment Management Ltd
80 Senator House, 85 Queen Victoria Street, London, EC4V 4ET
17nd
Smith & Williamson Investment Management LLP.
9 Colmore Row, Birmingham, B3 2BJ
Glebe Agents
Savills, River House, 17 Museum Street, York, Yoi 7DJ
ond
Dee, Atkinson & Harrison,
The Exchange, Exchange Street, Driffield. Y025 6LD
Insurers
Ecclesiastical Insurance Office plc,
Benefact House. 2000 Pioneer Avenue, Gloucester Business Park,
Brockworth, Gloucester. GL3 4AW
In approving this Trustees, Report. the Trustees are also approving the Strategic Report included on
pages 4- 18 within their capacity as company dSrectors.
ON BEHALF OF THETRUSTEES
Mr CR Barton
Chairman
IL¥ May 2022
The Right Rerfd PJ Ferguson
Vice Chair
14-May 2022
Page 25

## **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 2021 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 2021 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: 

Page 26 



- 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 23, 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 non-compliance 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; 

Page 27 



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

- Testing transfers between funds; and 

- 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 

08 June 2022 

Page 28 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **For the year end 31 December 2021** 

|**Note**<br>**Income and endowments from**<br>Donations<br>2<br>Parish contributions<br>Archbishops' Council<br>Other donations<br>Charitable activities<br>3<br>Other activities<br>4<br>Investments<br>5<br>Other<br>6<br>Total<br>**Expenditure on**<br>Raising Funds<br>7<br>Charitable activities<br>General charitable activities<br>8<br>Losses on clergy pension scheme<br>25<br>Total<br>**Net (expenditure)/income before**<br>**investment gains and losses**<br>Net gains/(losses) on investments<br>20<br>**Net income**<br>**Transfers between funds**<br>13<br>**Net movement in funds**<br>**Total funds brought forward**<br>**Total funds carried forward**<br>20|**Unrestricted**<br>**funds**<br>**£'000**<br>6,816<br>2,375<br>238<br>881<br>247<br>1,273<br>579<br>12,409<br>204<br>12,671<br>13<br>12,888<br>(479)<br>1,341<br>862<br>(481)<br>381<br>14,333<br>14,714|**Restricted**<br>**funds**<br>**£'000**<br>-<br>369<br>494<br>599<br>-<br>2<br>-<br>1,464<br>-<br>1,747<br>-<br>1,747<br>(283)<br>127<br>(156)<br>5,356<br>5,200<br>11,186<br>16,386|**Endowment**<br>**funds**<br>**£'000**<br>-<br>-<br>-<br>-<br>-<br>-<br>4,339<br>4,339<br>-<br>-<br>-<br>-<br>4,339<br>2,873<br>7,212<br>(4,875)<br>2,337<br>77,730<br>80,067|**Total funds**<br>**2021**<br>**£'000**<br>**6,816**<br>**2,744**<br>**732**<br>**1,480**<br>**247**<br>**1,275**<br>**4,918**<br>**18,212**<br>**204**<br>**14,418**<br>**13**<br>**14,635**<br>**3,577**<br>**4,341**<br>7,918<br>**-**<br>**7,918**<br>**103,249**<br>**111,167**|Total funds<br>2020<br>£'000<br>7,338<br>2,220<br>441<br>1,553<br>222<br>1,173<br>566|
|---|---|---|---|---|---|
||||||13,513|
||||||187<br>14,152<br>29|
||||||14,368|
||||||(855)<br>3,684|
||||||2,829<br>-|
||||||2,829<br>100,420|
||||||103,249|



All activities derive from continuing activities.  The notes on pages 33 to 61 from part of the financial statements. 

Page 29 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **INCOME AND EXPENDITURE ACCOUNT For the year end 31 December 2021** 

|**Total income**<br>**Total expenditure**<br>**Operating deficit for the year**<br>Net gains on investments<br>**Net income/(expenditure) for the year**<br>**Other comprehensive income**<br>Net assets transferred from/(to) endowments<br>**Total comprehensive income**|**Total**<br>**2021**<br>**£'000**<br>**13,873**<br>**(14,635)**<br>**(762)**<br>**1,468**<br>**706**<br>**-**<br>**4,875**<br>**5,581**|Total<br>2020<br>£'000<br>12,945<br>(14,088)|
|---|---|---|
|||(1,143)<br>797|
|||(346)<br>-<br>652|
|||306|



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. 

Page 30 



THE YORK DIOCESAN BOARD OF FINANCE LIMITED
BALANCE SHEET
Al 31 December 2021
Compat)v number- 225234
2021
2020
Notg
£'ooo
£'ooo
Axed assets
Tangible 355ets
Investmersts
14
48,391
55.196
103.587
48.723
48.689
97.412
CuttEnt •53ets
Debtors
Cash on deposit
Cash at bank3nd in hand
17
3.021
3,996
2,458
9.475
3,587
Z,824
1.860
8,271
Creditors.. amtyunts falllng due withln oneyear
11,S811
11.9481
NET CVRRENT ASSEfs
7,894
6,323
TOTALASSET5 LESS CURRENF LIABIUTIES
111,4Bi
103,735
Crethtws- arnoyntsfalllng due after mue ihan
oneyear
13141
14861
NEf ASSETS
111,167
103,249
FUNDS
End¢)wmentfunds
Ilncluding Investment Valuation Reserve of £22.967,orxi
12020.. £20.744,0(h)11
Resiritted income funds
Ilncluding Investment Valuation Reserve of £5fA).WO
801167
77.730
16.386
11,186
12020.. £413,00011
Unre5trirted income funds..
Ilncluding Investment Valuation Reserve of £4.975,LXIO
12020.. £4.OD9,00011
General-other
GÈneral- represented by tan@￿e fi¥ed assets
De518nated
9.408
4,￿3
9,m3
4.999
331
Total funds
22
111.167
103,249
The Ctsh Flow Statement and the Notes form part of these flnanoal statements. rhe flnandal statements We￿ approved bv
the Board ofTrustees and authorised lor issue onl1+ May 2022 and 51Ened on behalf of the Board by..
Mr CR Barton
Chairman
Page 31

**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **CASH FLOW STATEMENT** 

## **For the year end 31 December 2021** 

|**Net cash (outflow) from operating activities**<br>**Cash flows from investing activities**<br>Dividends and interest from investments<br>Proceeds from sale of:<br>Tangible fixed assets<br>Fixed asset investments<br>Closed Churches<br>Purchase of:<br>Tangible fixed assets for the use of the YDBF<br>Fixed asset investments<br>**Net cash provided by investing activities**<br>**Change in cash and cash equivalents in the**<br>**reporting period**<br>**Cash and equivalents at 1 January**<br>**Cash and equivalents at 31 December**<br>**Reconciliation of net income to net cash flow**<br>**from operating activities**<br>**Net income for the year ended 31 December**<br>**Adjusted for:**<br>Depreciation charges<br>Write down of impaired asset<br>Dividends and interest from investments<br>Profit on sale of functional assets<br>Profit on disposal of closed churches<br>Decrease/(Increase) in debtors<br>(Decrease) in creditors<br>**Net cash used in operating activities**<br>**Analysis of cash and cash equivalents**<br>Cash at bank and in hand<br>Notice deposits (less than 3 months)|**£'000**<br>**£'000**<br>**(2,052)**<br>**749**<br>**6,270**<br>**2,155**<br>**-**<br>**(1,031)**<br>**(4,321)**<br>**3,822**<br>**1,770**<br>**4,684**<br>**6,454**<br>**3,577**<br>**11**<br>**-**<br>**(749)**<br>**(4,918)**<br>**-**<br>**566**<br>**(539)**<br>**(2,052)**<br>**2,458**<br>**3,996**<br>**6,454**<br>**2021**|£'000<br>£'000<br>(1,598)<br>634<br>1,265<br>3,749<br>15<br>(10)<br>(3,604)<br>2,049<br>451<br>4,233<br>4,684<br>(855)<br>14<br>625<br>(634)<br>(551)<br>(15)<br>147<br>(329)<br>(1,598)<br>1,860<br>2,824<br>4,684<br>2020|£'000<br>£'000<br>(1,598)<br>634<br>1,265<br>3,749<br>15<br>(10)<br>(3,604)<br>2,049<br>451<br>4,233<br>4,684<br>(855)<br>14<br>625<br>(634)<br>(551)<br>(15)<br>147<br>(329)<br>(1,598)<br>1,860<br>2,824<br>4,684<br>2020|
|---|---|---|---|
|||||
||||451<br>4,233|
||||4,684|
||||(855)<br>14<br>625<br>(634)<br>(551)<br>(15)<br>147<br>(329)|
||||(1,598)|
||||1,860<br>2,824|
||||4,684|



Page 32 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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, 

Page 33 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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. 

Page 34 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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. 

Page 35 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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. 

Page 36 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **2.  DONATIONS** 

## **2a. Parish Contributions** 

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

|**Parish contributions to the Common Fund**<br>**Current year contributions**<br>**Receipts for previous years**<br>**Total income**<br>2020 comparative<br>Parish contributions to the Common Fund<br>Current year contributions<br>Receipts for previous years<br>Total income<br>**2b. Archbishops' Council**<br>**2021**<br>**Resourcing Education Ministry**<br>**Grant for low income dioceses**<br>**Sustainability Funding Grant**<br>**Total income**<br>2020 comparative<br>Resourcing Education Ministry<br>Grant for low income dioceses|**Unrestricted**<br>**Funds**<br>**£'000**<br>**6,756**<br>**60**<br>**6,816**<br>Unrestricted<br>Funds<br>£'000<br>7,265<br>73<br>7,338<br>**Unrestricted**<br>**Funds**<br>**£'000**<br>**-**<br>**1,755**<br>**620**<br>**2,375**<br>Unrestricted<br>Funds<br>£'000<br>-<br>1,825<br>1,825|**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>-<br>-<br>-<br>-<br>-<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**369**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**369**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>395<br>-<br>-<br>-<br>395<br>-|**Total funds**<br>**2021**<br>**£'000**<br>**6,756**<br>**60**|
|---|---|---|---|
||||**6,816**|
||||Total funds<br>2020<br>£'000<br>7,265<br>73|
||||7,338|
||||**Total funds**<br>**2021**<br>**£'000**<br>**369**<br>**1,755**<br>**620**|
||||**2,744**|
||||Total funds<br>2020<br>£'000<br>395<br>1,825|
||||2,220|



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. 

Page 37 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **2. DONATIONS (continued)** 

## **2c. Other donations** 

|**All Churches Trust Grant**<br>**Other grants and donations**|**Unrestricted**<br>**Funds**<br>**£'000**<br>**177**<br>**61**<br>**238**|**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**494**<br>**-**<br>**494**<br>**-**|**Total funds**<br>**2021**<br>**£'000**<br>**177**<br>**555**|
|---|---|---|---|
||||**732**|



Donations in 2019 included £3,167,000 from the Church Commissioners towards the costs of the multiply and restructuring programmes.   This is being spent over 6 years from 2019. 

|2020 comparative<br>All Churches Trust Grant<br>Other grants and donations|Unrestricted<br>Funds<br>£'000<br>185<br>81<br>266|Restricted<br>Funds<br>£'000<br>-<br>175<br>175|Endowment<br>Funds<br>£'000<br>-<br>-<br>-|Total funds<br>2020<br>£'000<br>185<br>256|
|---|---|---|---|---|
|||||441|



## **3. CHARITABLE ACTIVITIES** 

|**Statutory fees**<br>**Church Commissioners Guaranteed Annuities**<br>**Chaplaincy and other**<br>**Diocesan Board of Education**<br>**Wydale Hall**<br>2020 comparative<br>Statutory fees<br>Church Commissioners Guaranteed Annuities<br>Chaplaincy and other<br>Diocesan Board of Education<br>Wydale Hall|**Unrestricted**<br>**Funds**<br>**£'000**<br>**602**<br>**1**<br>**278**<br>**-**<br>**-**<br>**881**<br>Unrestricted<br>Funds<br>£'000<br>601<br>2<br>338<br>-<br>-<br>941|**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**63**<br>**-**<br>**187**<br>**-**<br>**349**<br>**-**<br>**599**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>-<br>-<br>-<br>30<br>-<br>170<br>-<br>412<br>-<br>612<br>-|**Total funds**<br>**2021**<br>**£'000**<br>**602**<br>**1**<br>**341**<br>**187**<br>**349**|
|---|---|---|---|
||||**1,480**|
||||Total funds<br>2020<br>£'000<br>601<br>2<br>368<br>170<br>412|
||||1,553|



Page 38 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **4. OTHER TRADING ACTIVITIES** 

|**4. OTHER TRADING ACTIVITIES**||||
|---|---|---|---|
|**Housing income**<br>2020 comparative<br>Housing income<br>**5. INVESTMENT INCOME**<br>**Dividends receivable**<br>**Interest receivable**<br>**Rental receivable**<br>2020 comparative<br>Dividends receivable<br>Interest receivable<br>Rental receivable<br>**6. OTHER INCOME**<br>**Gain on sale of properties**<br>**Disposal of closed churches**<br>2020 comparative<br>(Loss)/gain on sale of properties<br>Disposal of closed churches|**Unrestricted**<br>**Funds**<br>**£'000**<br>**247**<br>Unrestricted<br>Funds<br>£'000<br>222<br>**Unrestricted**<br>**Funds**<br>**£'000**<br>**745**<br>**2**<br>**526**<br>**1,273**<br>Unrestricted<br>Funds<br>£'000<br>617<br>10<br>539<br>1,166<br>**Unrestricted**<br>**Funds**<br>**£'000**<br>**579**<br>**-**<br>**579**<br>Unrestricted<br>Funds<br>£'000<br>(17)<br>-<br>(17)|**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>-<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**2**<br>**-**<br>**-**<br>**-**<br>**2**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>-<br>7<br>-<br>-<br>-<br>7<br>-<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**4,339**<br>**-**<br>**-**<br>**-**<br>**4,339**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>568<br>15<br>-<br>15<br>568|**Total funds**<br>**2021**<br>**£'000**<br>**247**|
||||Total funds<br>2020<br>£'000<br>222|
||||**Total funds**<br>**2021**<br>**£'000**<br>**745**<br>**4**<br>**526**|
||||**1,275**|
||||Total funds<br>2020<br>£'000<br>617<br>17<br>539|
||||1,173|
||||**Total funds**<br>**2021**<br>**£'000**<br>**4,918**<br>**-**|
||||**4,918**|
||||Total funds<br>2020<br>£'000<br>551<br>15|
||||566|



Page 39 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **7. FUNDRAISING COSTS** 

|**7. FUNDRAISING COSTS**||||
|---|---|---|---|
|**Investment Manager's Fees**<br>**Property agent's fees**<br>**Other rented property costs**<br>2020 comparative<br>Investment Manager's Fees<br>Property agent's fees<br>Other rented property costs<br>**8. CHARITABLE ACTIVITIES**<br>**Contributions to Archbishops' Council**<br>Training for ministry<br>National Church responsibilities<br>Grants & provisions<br>Mission agency pension costs<br>Retired clergy housing costs<br>Ordinand maintenance grants - pooling<br>adjustment<br>**Resourcing Ministry and Mission**<br>**Parish ministry**<br>Stipends, national insurance and pensions<br>Housing costs<br>Removal, resettlement and grants<br>**Specialist ministry**<br>Stipends, national insurance and pensions<br>**Resourcing Ministerial Education**<br>**Support for parish ministry**<br>**Wydale Hall**<br>**Expenditure on Education**<br>Support for church schools and parishes|**Unrestricted**<br>**Funds**<br>**£'000**<br>**29**<br>**115**<br>**60**<br>**204**<br>Unrestricted<br>Funds<br>£'000<br>26<br>117<br>44<br>187<br>**Unrestricted**<br>**Funds**<br>**£'000**<br>**351**<br>**245**<br>**30**<br>**16**<br>**129**<br>**70**<br>**841**<br>**6,274**<br>**2,301**<br>**230**<br>**601**<br>**-**<br>**9,406**<br>**2,061**<br>**-**<br>**11,467**<br>**363**<br>**12,671**|**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>Restricted<br>Endowment<br>Funds<br>Funds<br>£'000<br>£'000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**£'000**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**603**<br>**-**<br>**304**<br>**-**<br>**907**<br>**-**<br>**197**<br>**-**<br>**425**<br>**-**<br>**1,529**<br>**-**<br>**218**<br>**-**<br>**1,747**<br>**-**|**Total funds**<br>**2021**<br>**£'000**<br>**29**<br>**115**<br>**60**|
||||**204**|
||||Total funds<br>2020<br>£'000<br>26<br>117<br>44|
||||187|
||||**Total funds**<br>**2021**<br>**£'000**<br>**351**<br>**245**<br>**30**<br>**16**<br>**129**<br>**70**|
||||**841**|
||||**6,274**<br>**2,301**<br>**230**<br>**1,204**<br>**304**|
||||**10,313**<br>**2,258**<br>**425**|
||||**12,996**|
||||**581**|
||||**14,418**|



Page 40 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **For the year end 31 December 2021** 

## **8. CHARITABLE ACTIVITIES (continued)** 

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



Page 41 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **For the year end 31 December 2021** 

## **9. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS** 

|**Raising Funds**<br>**Charitable Activities:**<br>Contributions to Archbishops' Council<br>Resourcing parish ministry<br>Education<br>Retreat Centre<br>**Losses on clergy pension scheme**<br>2020 comparatives<br>Raising Funds<br>Charitable Activities:<br>Contributions to Archbishops' Council<br>Resourcing parish ministry<br>Education<br>Retreat Centre<br>Losses on clergy pension scheme|**Activities**<br>**Undertaken**<br>**Directly**<br>**£'000**<br>**204**<br>**-**<br>**9,621**<br>**496**<br>**326**<br>**13**<br>**10,660**<br>Activities<br>Undertaken<br>Directly<br>£'000<br>187<br>-<br>9,521<br>481<br>242<br>29<br>10,460|**Grant**<br>**Funding of**<br>**Activities**<br>**£'000**<br>**-**<br>**841**<br>**397**<br>**-**<br>**-**<br>**-**<br>**1,238**<br>Grant<br>Funding of<br>Activities<br>£'000<br>-<br>902<br>351<br>-<br>-<br>-<br>1,253|**Support**<br>**Costs**<br>**£'000**<br>**-**<br>**-**<br>**2,553**<br>**85**<br>**99**<br>**-**<br>**2,737**<br>Support<br>Costs<br>£'000<br>-<br>-<br>2,493<br>76<br>86<br>-<br>2,655|**Total**<br>**Costs**<br>**2021**<br>**£'000**<br>**204**<br>**841**<br>**12,571**<br>**581**<br>**425**<br>**13**|
|---|---|---|---|---|
|||||**14,635**|
|||||Total<br>Costs<br>2020<br>£'000<br>187<br>902<br>12,365<br>557<br>328<br>29|
|||||14,368|



Page 42 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **10. ANALYSIS OF SUPPORT COSTS** 

|**Central Administration**<br>**Pension deficit church workers scheme**<br>**Support for Schools**<br>**Retreat Centre**<br>**Governance:**<br>**External Audit**<br>**Registrar & Chancellor**<br>**Synodical costs**<br>2020 comparative<br>Central Administration<br>Pension deficit church workers scheme<br>Support for Schools<br>Retreat Centre<br>Governance:<br>External Audit<br>Registrar & Chancellor<br>Synodical costs<br>**11. ANALYSIS OF GRANTS MADE**<br>**From unrestricted funds for national church responsibilities**<br>**Contributions to Archbishops' Council**<br>**From unrestricted funds**<br>**PCCs for church inspection fees**<br>**PCC for faculty fees**<br>**PCCs for Repairs to Church Buildings**<br>**Ordinands in training**<br>**Clergy for training**<br>**Resettlement Grants**<br>**Diocese of York Educational Trust**<br>**From restricted funds**<br>**PCCs for Repairs to Church Buildings**<br>**Total**|**Unrestricted**<br>**Funds**<br>**£'000**<br>**2,393**<br>**85**<br>**-**<br>**26**<br>**126**<br>**8**<br>**2,638**<br>Unrestricted<br>Funds<br>£'000<br>2,338<br>76<br>-<br>29<br>122<br>4<br>2,569<br>**Number**<br>12<br>2<br>161<br>19<br>17<br>24<br>49<br>-<br>5<br>**277**<br>**289**|**Restricted**<br>**Funds**<br>**£'000**<br>**-**<br>**-**<br>**99**<br>**-**<br>**-**<br>**-**<br>**99**<br>Restricted<br>Funds<br>£'000<br>-<br>-<br>86<br>-<br>-<br>-<br>86<br>**Individuals**<br>**£'000**<br>-<br>-<br>-<br>-<br>99<br>9<br>231<br>-<br>-<br>**339**<br>**339**|**Endowment**<br>**Funds**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>Endowment<br>Funds<br>£'000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**Institutions**<br>**£'000**<br>840<br>-<br>34<br>11<br>-<br>-<br>-<br>-<br>13<br>**58**<br>**898**|**Total funds**<br>**2021**<br>**£'000**<br>**2,393**<br>**85**<br>**99**<br>**26**<br>**126**<br>**8**|
|---|---|---|---|---|
|||||**2,737**|
|||||Total funds<br>2020<br>£'000<br>2,338<br>76<br>86<br>29<br>122<br>4|
|||||2,655|
|||||**2021**<br>**Total**<br>**£'000**<br>840|
|||||-<br>34<br>11<br>99<br>9<br>231<br>-<br>13|
|||||**397**|
|||||**1,237**|



Page 43 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **For the year end 31 December 2021** 

## **11. ANALYSIS OF GRANTS MADE (continued)** 

|2020 comparative<br>From unrestricted funds for national church responsibilities<br>Contributions to Archbishops' Council<br>From unrestricted funds<br>PCCs for church inspection fees<br>PCC for faculty fees<br>PCCs for Repairs to Church Buildings<br>Ordinands in training<br>Clergy for training<br>Resettlement Grants<br>Diocese of York Educational Trust<br>Archbishop's Mission Fund<br>From restricted funds<br>PCCs for Repairs to Church Buildings<br>Total<br>**12. STAFF COSTS**<br>Employee costs during the year were as follows:<br>Wages and salaries<br>National insurance contributions<br>Pension Costs - Current Year<br>Pension Costs - Deficit<br>The average number of persons employed during the year :<br>Parochial Posts<br>Archdeaconry based roles<br>Reach, Grow, Sustain posts<br>Safeguarding and Pastoral Care<br>Training, Vocations and School of Ministry<br>Education<br>Other Diocesan Office based posts<br>Longhill<br>Wydale Hall<br>Externally funded posts<br>The average number of persons employed during the year based o<br>Parochial Posts<br>Archdeaconry based roles<br>Reach, Grow, Sustain posts<br>Safeguarding and Pastoral Care<br>Training, Vocations and School of Ministry<br>Education<br>Other Diocesan Office based posts<br>Longhill<br>Wydale Hall<br>Externally funded posts|Number<br>Individuals<br>£'000<br>12<br>-<br>33<br>-<br>190<br>-<br>10<br>-<br>17<br>92<br>25<br>5<br>43<br>157<br>1<br>-<br>9<br>-<br>3<br>-<br>331<br>254<br>343<br>254<br>n full-time equivalents:|Institutions<br>£'000<br>902<br>17<br>42<br>19<br>-<br>-<br>-<br>2<br>5<br>12<br>97<br>999<br>**2021**<br>**£'000**<br>2,257<br>221<br>249<br>2,727<br>81<br>2,808<br>**Number**<br>2.8<br>4.3<br>9.2<br>4.3<br>8.0<br>10.0<br>22.2<br>2.2<br>9.9<br>3.9<br>76.8<br>**Number**<br>2.8<br>2.9<br>8.4<br>3.7<br>6.7<br>9.3<br>19.9<br>0.8<br>6.6<br>2.7<br>63.9|2020<br>Total<br>£'000<br>902|
|---|---|---|---|
||||17<br>42<br>19<br>92<br>5<br>157<br>2<br>5<br>12|
||||351|
||||1,253|
||||2020<br>£'000<br>2,351<br>229<br>263|
||||2,843<br>12|
||||2,855|
||||Number<br>3.0<br>4.2<br>9.1<br>3.9<br>8.2<br>10.0<br>22.8<br>3.0<br>10.8<br>4.3|
||||79.3|
||||Number<br>2.9<br>3.1<br>9.1<br>3.4<br>6.7<br>9.4<br>20.7<br>1.3<br>6.7<br>2.8|
||||66.1|



Page 44 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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: 

|||**2021**||2020||
|---|---|---|---|---|---|
|£60,000|- £70,000||2||2|
|£70,000|- £80,000||1||1|



Pension payments of **£31,189** (2020: £31,035) were made to these employees Payments on termination of employment of £nil (2020: £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 2021 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 (resigned June 2021)|The Reverend R White|
|Director of Training for Missional Ministry (resigned August 2021)|The Reverend Doctor GT Wakefield|
|Director of Mission & Minsitry (appointed September 2021)|The Reverend I McIntosh|



Remuneration, pensions and benefits for these employees amounted to £476,205 (2020: £502,104). 

## **Trustees’ emoluments** 

No Trustee received any remuneration for services as Trustee. 12 (2020: 14) of the Trustees received travelling and out of pocket expenses, totalling **£14,438** (2020 - £10,702) 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 Right Reverend J Frost (resigned 18 January 2022)|No|No|
|The Right Reverend PJ Ferguson|No|Yes|
|The Right Reverend JB Thomson|No|Yes|
|The Right Reverend AM White (resigned 28 February 2022)|No|Yes|
|The Venerable AC Broom|Yes|Yes|
|The Venerable SJ Rushton|Yes|Yes|
|The Venerable A Bloor|Yes|Yes|
|The Reverend R Walker (appointed 21 October 2021)|Yes|Yes|
|The Reverend T Robinson (resigned 6 September 2021)|Yes|Yes|
|The Reverend FR Mayer-Jones|Yes|Yes|
|The Reverend NWR Bird (term ended 31 December 2021)|Yes|Yes|
|The Reverend RC Carew (term ended 31 December 2021)|Yes|Yes|
|The Reverend MJ Proctor (term ended 31 December 2021)|Yes|Yes|
|The Reverend MJ Porter (term ended 31 December 2021)|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. 

Page 45 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **For the year end 31 December 2021** 

## **12. STAFF COSTS (continued)** 

The YDBF paid an average of 185 (2020 – 184) stipendiary clergy as office-holders holding parochial or diocesan appointments in the diocese, and the costs were as follows: 

|esan appointments in the diocese, and the costs were as follows:|||
|---|---|---|
|Stipends<br>National insurance contributions<br>Pension costs - current year<br>Pension costs  - deficit reduction|**2021**<br>**£'000**<br>4,770<br>404<br>1,533<br>331<br>7,038|2020<br>£'000<br>4,757<br>395<br>1,298<br>542|
|||6,992|



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** (2020 range £37,670 - £72,900). The annual rate of stipend, funded by the YDBF, paid to Archdeacons in 2021 **£36,830** (2020 range £36,110- £36,830) and other clergy who were Trustees were paid in the range **£26,265- £26,892** (2020 range £23,920 - £26,895). 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**<br>**Parsonages Houses Fund to the Benefice Building Fund**<br>**General Fund to the Pastoral Account - property related**<br>**General Fund to the Pastoral Account- other**<br>**Pastoral Account to the Diocesan Parsonages Board**<br>**Diocesan Parsonages Board to Pastoral Account**<br>**Parsonages Houses Fund to General fund**<br>**From the General Fund to the Stipends Capital Fund for the**<br>**reduction of the clergy pension deficit**<br>**General fund to designated funds**|**Unrestricted**<br>**Funds**<br>**£'000**<br>**-**<br>**-**<br>**(860)**<br>**501**<br>**-**<br>**-**<br>**195**<br>**(317)**<br>**(76)**|**Designated**<br>**Funds**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**76**<br>**76**|**Restricted**<br>**Funds**<br>**£'000**<br>**2,870**<br>**2,127**<br>**860**<br>**(501)**<br>**(260)**<br>**260**<br>**-**<br>**-**<br>**5,356**|**Endowment**<br>**Funds**<br>**£'000**<br>**(2,870)**<br>**(2,127)**<br>**-**<br>**-**<br>**-**<br>**-**<br>**(195)**<br>**317**<br>**-**|
|---|---|---|---|---|
||**(557)**|||**(4,875)**|



All of the transfers made between funds during 2021 relate to property transactions with the exception of the transfer relating to the clergy pension deficit, those to designated funds and £501,000 transferred from the Pastoral to the General Fund, being a contribution agreed by the Board towards the impact of Covid and also the investment gains in excess of inflation on the Pastoral Account. 

|2020 comparative<br>Pastoral Account to the Parsonages Houses Fund<br>Parsonages Houses Fund to the Benefice Building Fund<br>General Fund to the Pastoral Account<br>Parsonages Houses Fund to the Diocesan Parsonages Board<br>From the General Fund to the Stipends Capital Fund for the<br>reduction of the clergy pension deficit<br>General fund to designated funds|Unrestricted<br>Funds<br>£'000<br>-<br>-<br>(353)<br>-<br>(503)<br>(110)|Designated<br>Funds<br>£'000<br>-<br>-<br>-<br>-<br>-<br>110<br>110|Restricted<br>Funds<br>£'000<br>601<br>311<br>353<br>243<br>-<br>1,508|Endowment<br>Funds<br>£'000<br>(601)<br>(311)<br>-<br>(243)<br>503<br>-|
|---|---|---|---|---|
||(966)|||(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, those to designated funds. 

Page 46 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **For the year end 31 December 2021** 

## **14. TANGIBLE FIXED ASSETS - Land & Buildings** 

|**Cost**<br>At 1 January 2021<br>Additions<br>Disposals<br>At 31 December 2021<br>**Depreciation**<br>At 1 January 2021<br>Charge for the year<br>Impairment<br>Disposals<br>At 31 December 2021<br>**Net book value**<br>**At 31 December 2021**<br>At 31 December 2020|**Wydale**<br>**Hall**<br>**£000**<br>1,950<br>-<br>-|**Education**<br>**Properties**<br>**£000**<br>81<br>-<br>-<br>81<br>-<br>-<br>-<br>-<br>-<br>**81**<br>81|**Freehold**<br>**Properties**<br>**£000**<br>46,335<br>1,031<br>(1,352)<br>46,014<br>625<br>-<br>-<br>-<br>625<br>**45,389**<br>45,710|**Diocesan**<br>**Office**<br>**£000**<br>963<br>-<br>-|**Office**<br>**Equipment**<br>**£000**<br>154<br>-<br>-|**Total**<br>**£000**<br>**49,483**<br>**1,031**<br>**(1,352)**|
|---|---|---|---|---|---|---|
||1,950|||963|154|**49,162**|
||-<br>-<br>-<br>-|||-<br>-<br>-<br>-|135<br>11<br>-<br>-|**760**<br>**11**<br>**-**<br>**-**|
||-|||-|146|**771**|
||||||||
||**1,950**|||**963**|**8**|**48,391**|
||||||||
||1,950|||963|19|48,723|



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** (2020: £148,000). 

## **15. FIXED ASSET INVESTMENTS** 

|Investment Property<br>Listed Investments<br>Unlisted Investments<br>**16. FINANCIAL INSTRUMENTS**<br>Financial assets measured at fair value|**At**<br>**1 January**<br>**2021**<br>**£000**<br>17,743<br>17,739<br>13,207<br>**48,689**|**Additions**<br>**£000**<br>-<br>1,833<br>2,491<br>**4,324**|**Disposals**<br>**£000**<br>(192)<br>(1,931)<br>-|**Change in**<br>**Market**<br>**Value**<br>**£000**<br>-<br>2,442<br>1,864|**At**<br>**31 December**<br>**2021**<br>**£000**<br>**17,551**<br>**20,083**<br>**17,562**|
|---|---|---|---|---|---|
||||**(2,123)**|**4,306**|**55,196**|
|||||**2021**<br>**£000**<br>36,667|2020<br>**£000**<br>30,170|



Financial assets measured at fair value comprise listed and unlisted investments and value linked loans to parishes. Financial assets measured at amortised cost comprise cash and debtors. Financial liabilities measured at amortised cost comprise loans and other creditors. 

Page 47 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **17. DEBTORS** 

|Due within one year<br>Capital Work in Progress<br>Other debtors and prepayments<br>Due after more than one year<br>Loans to parishes<br>**Total debtors**|**2021**<br>**£'000**<br>**68**<br>**2,735**<br>**2,803**<br>**218**<br>**3,021**|2020<br>£'000<br>355<br>2,956|
|---|---|---|
|||3,311|
|||276|
|||3,587|



Other debtors includes £2,008,000 (2020: £2,395,000) 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 6 years from 2019. 

## **18. CREDITORS: amounts falling due within one year** 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Trade creditors|**173**|158|
|Other taxation and social security|**56**|48|
|Other creditors and accruals|**531**|477|
|Amounts held for other bodies|**397**|643|
|Pension Scheme Liabilities|||
|Church Workers' Pension Fund|**80**|80|
|Clergy Pension Scheme|**344**|542|
|**Total creditors amounts falling due within one year**|**1,581**|1,948|
|**19. CREDITORS: amounts after more than one year**|||
||**2021**|2020|
||**£'000**|£'000|
|Loan repayment instalments due after more than one year|||
|Church Commissioners value-linked loans|**53**|53|
|Pension scheme liabilities|||
|Church Workers' Pension Fund|**261**|259|
|Clergy Pension Scheme|**-**|119|
|Other creditors|**-**|55|
|**Total creditors: amounts falling due after more than one year**|**314**|486|
|The maturity of the above loans may be analysed as follows:|||
|In five years and more|**53**|53|
||**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 2021 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. 

Page 48 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **20. SUMMARY OF FUND MOVEMENTS** 

|**UNRESTRICTED FUNDS**<br>General<br>Designated<br>Roof Alarm Grants Fund<br>Mustard Seed Fund<br>**RESTRICTED FUNDS**<br>Diocesan Parsonages Board<br>Pastoral Account<br>Resourcing Ministerial Education<br>Benefice Building Fund<br>Faith in Education Fund<br>Mission Support Fund<br>Bishops' IT<br>First Lord Grimthorpe's Trust<br>Ministry Fund<br>Wydale Hall<br>Board of Education<br>Learning to Lead Religious Education<br>Multiply (20s-40s)<br>Restructuring<br>Mustard Seed Fund<br>Longhill<br>Kingswood<br>Roof Alarm & Building Grants Funds<br>**ENDOWMENT FUNDS**<br>**Expendable**<br>Parsonages Houses Fund<br>Board of Education<br>**Permanent**<br>Stipends Capital Fund<br>Ordination Candidates Council<br>First Lord Grimthorpe's Trust<br>Local Trusts' Stipend Fund<br>**Total funds**|**Balances at**<br>**1 January**<br>**2021**<br>**£'000**<br>14,002<br>28<br>303|**Income**<br>**£'000**<br>12,409<br>-<br>-|**Expenditure**<br>**£'000**<br>(12,884)<br>(4)<br>-|**Gains and**<br>**losses**<br>**£'000**<br>1,341<br>-<br>-|**Transfers**<br>**£'000**<br>(557)<br>(24)<br>100|**Balances  at**<br>**31 December**<br>**2021**<br>**£'000**<br>**14,311**<br>**-**<br>**403**|
|---|---|---|---|---|---|---|
||14,333|12,409|(12,888)|1,341|(481)|**14,714**|
||3,593<br>1,937<br>96<br>1,618<br>1<br>33<br>11<br>11<br>2<br>1,424<br>147<br>-<br>2,254<br>-<br>-<br>17<br>3<br>39|-<br>-<br>368<br>2<br>-<br>-<br>-<br>2<br>63<br>349<br>182<br>5<br>-<br>370<br>115<br>8<br>-<br>-|-<br>(11)<br>(304)<br>-<br>-<br>-<br>-<br>-<br>(67)<br>(425)<br>(213)<br>(5)<br>(406)<br>(184)<br>(115)<br>(1)<br>(3)<br>(13)|-<br>127<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|260<br>3,262<br>-<br>1,834<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|**3,853**<br>**5,315**<br>**160**<br>**3,454**<br>**1**<br>**33**<br>**11**<br>**13**<br>**(2)**<br>**1,348**<br>**116**<br>**-**<br>**1,848**<br>**186**<br>**-**<br>**24**<br>**-**<br>**26**|
||11,186|1,464|(1,747)|127|5,356|**16,386**|
||33,182<br>2,086<br>41,606<br>232<br>48<br>576|4,339<br>-<br>-<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-<br>-|-<br>214<br>2,552<br>30<br>6<br>71|(5,192)<br>-<br>317<br>-<br>-<br>-|**32,329**<br>**2,300**<br>**44,475**<br>**262**<br>**54**<br>**647**|
||77,730|4,339|-|2,873|(4,875)|**80,067**|
||||||||
||**103,249**|**18,212**|**(14,635)**|**4,341**|**-**|**111,167**|



Page 49 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **20. SUMMARY OF FUND MOVEMENTS (continued)** 

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



Page 50 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **21. SUMMARY OF ASSETS BY FUND** 

|**UNRESTRICTED FUNDS**<br>General<br>Designated<br>Roof Alarm Grants Fund<br>Mustard Seed Fund<br>**RESTRICTED FUNDS**<br>Diocesan Parsonages Board<br>Pastoral Account<br>Resourcing Ministerial Education<br>Benefice Building Fund<br>Faith in Education Fund<br>Mission Support Fund<br>Bishops' IT<br>First Lord Grimthorpe's Trust<br>Ministry Fund<br>Wydale Hall<br>Board of Education<br>Learning to Lead Religious Education<br>Multiply (20s-40s)<br>Restructuring<br>Mustard Seed<br>Longhill<br>Kingswood<br>Roof Alarm & Building Grants Funds<br>**ENDOWMENT FUNDS**<br>**Expendable**<br>Parsonages Houses Fund<br>Board of Education<br>**Permanent**<br>Stipends Capital Fund<br>Ordination Candidates Council<br>First Lord Grimthorpe's Trust<br>Local Trusts' Stipend Fund<br>**Total funds**|**Tangible**<br>**Investments**<br>**£'000**<br>**£'000**<br>4,903<br>9,431<br>-<br>-<br>-<br>-<br>4,903<br>9,431<br>3,853<br>-<br>-<br>3,777<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,950<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>5,803<br>3,777<br>32,329<br>-<br>81<br>2,007<br>5,275<br>39,018<br>-<br>262<br>-<br>54<br>-<br>647<br>37,685<br>41,988<br>48,391<br>55,196<br>**Fixed assets**|**Current**<br>**Assets**<br>**£'000**<br>691<br>-<br>403<br>1,094<br>-<br>1,538<br>160<br>3,454<br>1<br>33<br>11<br>12<br>(2)<br>(75)<br>116<br>3<br>1,848<br>186<br>-<br>24<br>-<br>26<br>7,335<br>-<br>518<br>528<br>-<br>-<br>-<br>1,046<br>9,475|**Creditors**<br>**£'000**<br>(714)<br>-<br>-<br>(714)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1<br>-<br>(527)<br>-<br>(3)<br>-<br>-<br>-<br>-<br>-<br>-<br>(529)<br>-<br>(306)<br>(346)<br>-<br>-<br>-<br>(652)<br>(1,895)|**Net**<br>**Assets**<br>**£'000**<br>14,311<br>-<br>-<br>403|
|---|---|---|---|---|
|||||14,714|
|||||3,853<br>5,315<br>160<br>3,454<br>1<br>33<br>11<br>13<br>(2)<br>1,348<br>116<br>-<br>1,848<br>186<br>-<br>24<br>-<br>26|
|||||16,386|
|||||32,329<br>2,300<br>44,475<br>262<br>54<br>647|
|||||80,067|
||||||
|||||111,167|



Page 51 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **21. SUMMARY OF ASSETS BY FUND (continued)** 

|2020 Comparatives<br>UNRESTRICTED FUNDS<br>General<br>Designated<br>Roof Alarm Grants Fund<br>Mustard Seed Fund<br>RESTRICTED FUNDS<br>Diocesan Parsonages Board<br>Pastoral Account<br>Resourcing Ministerial Education<br>Benefice Building Fund<br>Faith in Education Fund<br>Mission Support Fund<br>Bishops' IT<br>First Lord Grimthorpe's Trust<br>Ministry Fund<br>Wydale Hall<br>Board of Education<br>Learning to Lead Religious Education<br>Multiply (20s-40s)<br>Restructuring<br>Mustard Seed<br>Longhill<br>Kingswood<br>Roof Alarm & Building Grants Funds<br>ENDOWMENT FUNDS<br>Expendable<br>Parsonages Houses Fund<br>Board of Education<br>Permanent<br>Stipends Capital Fund<br>Ordination Candidates Council<br>First Lord Grimthorpe's Trust<br>Local Trusts' Stipend Fund<br>Total funds|Tangible<br>Investments<br>£'000<br>£'000<br>4,999<br>9,421<br>-<br>-<br>-<br>-<br>4,999<br>9,421<br>3,593<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,950<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>5,543<br>-<br>33,182<br>-<br>81<br>1,744<br>4,918<br>36,668<br>-<br>232<br>-<br>48<br>-<br>576<br>38,181<br>39,268<br>48,723<br>48,689<br>Fixed assets|Current<br>Assets<br>£'000<br>507<br>28<br>303<br>838<br>-<br>1,937<br>96<br>1,618<br>1<br>33<br>11<br>23<br>2<br>(23)<br>147<br>7<br>2,254<br>-<br>-<br>17<br>3<br>39<br>6,165<br>-<br>586<br>682<br>-<br>-<br>-<br>1,268<br>8,271|Creditors<br>£'000<br>(925)<br>-<br>-<br>(925)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(12)<br>-<br>(503)<br>-<br>(7)<br>-<br>-<br>-<br>-<br>-<br>-<br>(522)<br>-<br>(325)<br>(662)<br>-<br>-<br>-<br>(987)<br>(2,434)|Net<br>Assets<br>£'000<br>14,002<br>-<br>28<br>303|
|---|---|---|---|---|
|||||14,333|
|||||3,593<br>1,937<br>96<br>1,618<br>1<br>33<br>11<br>11<br>2<br>1,424<br>147<br>-<br>2,254<br>-<br>-<br>17<br>3<br>39|
|||||11,186|
|||||33,182<br>2,086<br>41,606<br>232<br>48<br>576|
|||||77,730|
||||||
|||||103,249|



Page 52 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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:|
||<br>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|
||<br>to make loans or grants for the provision, restoration, improvement or repair of|
||churches and parsonage houses in the diocese|
||<br>other purposes of the diocese or any benefice or parish in the diocese|
||<br>to make grants or loans to any other diocese|
||<br>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.|



Page 53 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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.|



Page 54 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **23. CAPITAL COMMITMENTS** 

At 31 December 2019 the YDBF had capital expenditure commitments authorised but not contracted for of £nil (2020 - £nil), and contracted for but not yet due of £61,760 (2020 - £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 3.4% 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. 

Page 55 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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 2020 and 31 December 2021 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 sheet liability as at 1 January<br>Deficit contribution paid<br>Interest cost (recognised in SOFA)<br>Remaining change to the balance sheet liability*<br>(recognised in SOFA)<br>Balance sheet liability as at 31 December|**2021**<br>**£'000**<br>**661**<br>**(331)**<br>**1**<br>**13**|2020<br>£'000<br>1,164<br>(542)<br>10<br>29|
|---|---|---|
||**344**|661|



* 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:|**2021**|2020|2019|
|---|---|---|---|
|Discount rate|0.0%pa|0.2%pa|1.1%pa|
|Price inflation|n/a|3.1%pa|2.8%pa|
|Increase to total pensionable payroll|-1.5%pa|1.6%pa|1.3%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. 

Page 56 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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 Section, 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 ( **2021 DBF £nil and Wydale £nil** ; 2020: 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. 

Page 57 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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 2019. In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m 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 £11.3m. The next actuarial valuation is due at 31 December 2022. 

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay expenses of £9,000 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 5.08 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer’s financial statements. 

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below: 

|Balance sheet liability as at 1 January<br>Deficit contribution paid<br>Interest cost (recognised in SOFA)<br>Remaining change to the balance sheet liability*<br>(recognised in SOFA)<br>Balance sheet liability as at 31 December|**2021**<br>2020<br>**2021**<br>2020<br>**£'000**<br>£'000<br>**£'000**<br>£'000<br>**283**<br>340<br>**56**<br>67<br>**(66)**<br>(66)<br>**(13)**<br>(13)<br>**1**<br>3<br>**-**<br>1<br>**63**<br>6<br>**17**<br>1<br>**281**<br>283<br>**60**<br>56<br>**YDBF**<br>**Wydale**|**2021**<br>2020<br>**£'000**<br>£'000<br>**339**<br>407<br>**(79)**<br>(79)<br>**1**<br>4<br>**80**<br>7<br>**341**<br>339<br>**Total**|**2021**<br>2020<br>**£'000**<br>£'000<br>**339**<br>407<br>**(79)**<br>(79)<br>**1**<br>4<br>**80**<br>7<br>**341**<br>339<br>**Total**|
|---|---|---|---|
|||**341**|339|



* 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: 

||||**2021**|2020|2019|
|---|---|---|---|---|---|
|Discount rate at|31|December|**1.4%pa**|0.4%pa|1.3%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. 

Page 58 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

**NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **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, 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 which members use to provide benefits at retirement.  Pension contributions are recorded in an account for each member.  Discretionary bonuses may be added before retirement, depending on investment returns and other factors.  The account, plus any bonuses declared, is payable, unreduced from age 65. 

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 ( **2021: DBF £237,578 and Wydale £11,356** ; 2020: DBF £235,536 and Wydale £11,516). 

A valuation of the Pension Builder Scheme is carried out once every three years.  The most recent was carried out as at December 2019.  The next valuation is due at 31 December 2022. 

For the Pension Builder Classic section, the valuation revealed a deficit of £8m on the ongoing assumptions used.  At the most recent annual review, the Board chose to grant a discretionary bonus of 3%, following improvements in the funding position over 2021. **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.** 

Page 59 



## **THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **STATEMENT OF THE FINANCIAL ACTIVITIES For the year end 31 December 2021** 

## **26. PRIOR YEAR COMPARATIVE SOFA** 

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



Page 60 



**THE YORK DIOCESAN BOARD OF FINANCE LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year end 31 December 2021** 

## **27. RELATED PARTY TRANSACTIONS** 

Having made enquiries, the directors are not aware of any related party transactions in 2021 (2020: £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 £nil to DYET during 2021 (2020: £1,500). 

## **28. 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 

|CBF Church of England Investment Fund<br>CBF Church of England Fixed Interest Fund<br>CBF Church of England Property Fund shares<br>COIF income and accumulation shares<br>Other common investment fund holdings<br>CBF Church of England Deposit Fund<br>Cash at bank<br>Total assets held as custodian trustee|**2021**<br>**£'000**<br>**4,450**<br>**226**<br>**36**<br>**363**<br>**9,464**<br>**1,661**<br>**604**<br>**16,804**|2020<br>£'000<br>3,916<br>232<br>31<br>338<br>8,246<br>1,633<br>232|
|---|---|---|
|||14,628|



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