THE OVERSEAS BISHOPRICS, FUND REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Registered Charity 245334
CONTENTS Page REFERENCE AND ADMINISTRATIVE INF RMATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE OVERSEAS BISHOPRICS. FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 BALANCE SHEET AT 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 io 13 14 16
REFERENCE AND ADMINISTRATIVE INFORMATION The Overseas Blshopflcs Fund is a charitable trust. founded in 1841 as The Colonlal Bishoprics Fund,, registered with the Charity Commisslon Ino. 2453341. Offlce Church House, Great Smith Street, Westminster, London SWIP 3AZ Presldent The Most Revd and Rt Hon the Lord Archbishop of Canterbury Members of the Councll (trustees of the 08FI durlng 2022 Appointed by theArchbishop of Conterbury The Rt Revd Gull Francis-Dehqani The Rt Revd Anthony Poggo Represent(ytives of bodies artive tn the support of the worldwide church Mr Sam Richardson ISPCKI The Revd Duncan Dormor IUSPGI Mr Robert Dawes IThe Mothers. Unlonl Rev Andy Robert5 ICMSI Trustees appointed by the Council The Revd Canon Mark Oxbrow (Chair of the Council) Mr Colin Bird Mr Stephen Slack Mr Edward Chaplin Mrs janice Proud (appointed in June 20221 The Revd Rana Khan lappointed in June 20221 Officers Mr Stephen Lyon Iseeretaryl Mr Christopher Smith (Clerkl (until February 20231 Audltor: 8ankers: Investment Managers: Crowe U.K LLP 55 Ludgate Hill London EC4M 7JW Lloyds Bank plc 25 Gie5ham Stfeet London EC2V 7HN CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London SWIE 5JL
THE OVERSEAS BISHOPRICS FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees of the Overseas Bishoprics Fund I"OBF~I present their report along with the financial statements for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out on page 17, and comply with the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparin8 their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 I'the SORP"). Structurei governance. mana4ement and remuneratlon The governing document of the OBF is The Rulesfor the Administrotion of the Fund. This defines its object, the methods by which that may be achieved, the procedures for the appointment of its Council and officers. and the means by which its business may be transacted. These Rules were thoroughly reviewed. revised and approved by the OBF Council in November in 2019 and subsequently sent to the Charity Comrnission. The Rules providethat all affairs of the OBF are to be controlled by its Council, consisting of not more than twelve trustees. New trustees receive an Induction pack of relevant docyments outlining all aspects of the workin85 of the Fund. The OBF has no other related partles apart from Barlow Interventions Limited, a company run by the 08F Secretary. Barlow Interventions Limited charges the OBF perlodically for secretarial work and related expenses. The level of remuneration for the OBF Secretary is set by the OBF every three years and it wa5 agreed that from October 2018 a daily rate of £300 would be applied. This was uplifted in June 2022 to a daily rate of £350. Appolntmèrtt of Trustèes The compositlon ol thè OBF, in atcordance with the updated 2019 rules of the Council, consists of not more than twelve members, who shall be the trustees of the Fund, as follows.. lal two bishops appointed by the Archbishop of Canterbury, for a maximum term of 12 years. Ibl representatives of bodies active in thesupptsrtof the worldwide church (Society for Promotingchristian Knowledge ISPCKI, the United Society Partners in the Gospel IUSPGI, the Church Mission Society ICMSI and the Mothers. Union IMUII for a maximum term of 12 years,. and Icl up to six other members, appointed by the Council. for a maximum term of 12 years. Statement of publk benefit The OBF believes that the Chrlstian faith is of benefit to Society and individuals as it brings a vision (>f transformation for peace and social harrnony. This 15 derived from the belief of the Church that the ultimate purpose of God is to bring all thing5 into unity and perfection in Jesus Christ. The quality and security of the leadership within the Church is crucial in ensurlng that this vislon is reali5ed. The OBF believes that the advancement of the Christian religion will be enhanced by the provision of -support for the senior national and regional leadership of the worldwide Church. and in particular for the establishment and maintenance of bishoprics within the Anglican Communlon~. The bishops whom the OBF supports, work in some of the neediest areas of the world. Their leadership benefits not only the Church but also the wider communlty and their nation and region. Their work often builds reconciliation, bringing cornmunity cohesion and stability through education, development and ¢apacity building. They also provide vital links with the wider communities beyond those they primarily serve. The OBF Seeks to demonstrate this benefit through the way it addre5SèS the need5 of those in eplscopal leadership within or closely associated wlth the Anglican Communion, as detailed in this rert. When plannin8 its activitles for the year the Council has considered the Charity Commission guidance on public benefit and. in particular. the speciflc guidance on charities for the advancement of reSigion.
THE OVERSEAS BISHOPRICS FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Itontinuedl Grant-maklng pollcy rhe OBF makes grants out of its General Fund, to supplement the local funds of overseas bishoprics. In 2019 the Council reviewed its grant giving priorities and procedures producing a new set of Guidance Notes and a common Application F()rm. Support for initiatives that build Episcopal leadership capacity is now a high priority. Grants are usually rnade for an individual year but in some cases multl-year commltments are made. Every applicant for funding is strongly encouraged to provide.. as much clarity as posslble as to what other sources of support a bishopric is seeking or has recelved and the 5evel of Ioc81 support from within a bi5hopric' evidence of the support of the Primate or Provincial Secretary of the Province in which the applicant's bishopric is situated,. and assurances that the Communlon's own guldelines for the ff nancing of new dioceses have been followed. Income from each of the restricted funds is paid to the overse35 diocese or province to which it relates. The income from each fund is therefore 8enerally equal to the investment income less èdministratioft expenses for the year in question. Objectives and actlvltles The Rules provide that the core object of the 08F 15 as follows: The object of the Fund shall be to provide support for the senior national and regional leadership of the worldwide Church, and in particular for the establishment and maintenance of bishoprics within the Anglican Communion. And, provide further guidance that.. In relation to any area of the world outside the United Kingdom whère there exists a church that is part of the Anglican Communion or in communion withln the See of Canterbury. the Fund mav.. provide financial assSstance towards the setting up and maintenance of the bishoprics of such a church,. and hold endowrnent funds for the benefit ol such bishoprics. In relation to any area of the world outside the United Kingdom. the Fund mav.. provide financial assistance towards the setting up and maintenance of the bishoprics of any church whose relationship with the Church of England is such that the Council of thè Fund, having sought the advicè of the Ai¢hbi5hop of Canterbury, judges it suitable that such assistance be 8iven,' and hold endowment funds for the benefit of such blshoprics. In relation to any church in any of theabove categories or in felation to any part of such a church. where there is not in place for the tirne being a 5y5tem of Episcopal leadership, any reference in the above provi5i9n5 to a bishopric shall have effect as if it were to the office and work of a senior national or re8ional leader of status equivalent to that of a bishop. Ibl Ibl 141 The 08F is unique in the Anglican Communion in that, whilst it is keen to work alon8side other organisations supporting the worldwidè Church more generally, its specific remit is to provide assistance for the work of bishops throughout the Communion outside the UK. These bishops provide the1eadership necessary to enable the delivery of the vision that the Christian faith can bring about transformation for peace and social hafrnonv. The 08F seeks to achieve this in two ways. Firstly, it administers episcopal endowment trust funds on behalf of several dloceses and provlnces and transfers accumLtlated income to them. Secondly, it makes grants to bishoprics.
THE OVERSEAS BISHOPRICS FVND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icontinuedl Fundralsln8 Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The Council does not currently undertake fundraising activity of any nature, 15 not registered with a fundraising regulator. has no commercial participators, and has received no complaints relatin8 to fundraising durin8 the vear. Rlsk management The OBF'S risk management process facilitate5 the Identification of threats io achieving it5 objectives and the mitigation of these threats. The risk register is drawn up by the Secretary and reviewed by the OBF on a bi- annual basis. The OBF has agreed that the risks below are those which are the main barrler to achieving its objectives and are addressed through the mitigating stratègiès. Risk are? Key mltlgatlng Strategles Single fund Manager for investrnents may le8d to poorer investment returns, 8nd capital value not maintained, irnpacting on abillty to provide stable and sustainable dlstrlbutions. Macro-economic event5 le.g. Brexlt, COVID-191 may Impact Investment performance and the sustainability of future distributions. -Fund manager Invests in diversified portfollo -Funds are held in deposit, Investment fund and property fvnd shares -Performance ol fund manager Compared to other fund managers -Acce55 to investment performance report5 produced by Archbishop5' Councll Investrnent Committee -Regular meetings between the fund manager and the Councll to dlscu55 investment policies and performance Inadequare documentstion of Fund details may lead to delay in payments and requirements of funds are not fully complied with. -New staff working on OBF matters are given an induction on purpose and work of the Fund -File5 are held centrallyfor all key documents -Database Is rnaintsined of all Bishoprlc details Grant allocations may not cover certain needy Bishoprics leading to 08F not seen as supporting the whole of the Communion -Mi55ion agencles are involved to obtain knowledge of local area -Trustees and Council members who have knowledge of the 8ishoprlc5, and the areas in whlch they operate, ère involved in grant allocation. Funds rnay be overspent in the UK and misappropriated overseas -Two signatorles for every payment over £5fK) -Fund secretary holds latest records for administerin8 the funds to ensu payments reach intended recipients -Adrnin charges deducted before incorne payments are made -Purposes of the Fund outlined to recipients each time an Income payment is made -A11 grants agreed by the Council as 4pproprlate -payments rnu5t be mède to a provlncial or dioce54n accounr11.e. not a personal one) Confirmation of receipt of funds are gent by the grantee to the secretary to the OBF together wlth a signed agreement that the grant or income will only be used for the specrfie purposes stated or in line with the oblectNes of the 08F. In addition, a summary ls quested of the wèy in which previous grants have been spent Poor succession planning and knowledge Management leads to disruptlon In the work of the OBF. -Put succession plan in place -share knowledge of worklng of the Fund across finance department -work collaborativeby with other similar fundlng bodies
THE OVERSEAS BISHOPRICS FUND TRUSTEE5' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icontlnuedl Attivbtiès of the OBF Council in the year to 31 December 2022 2022 saw the UK coming out of the global pandemic of the Cortsnaviru5. For the OBF it meant that we werè able to resume our faee-to-face meetings. The longer-term effects of the virus continued to influence life acr¢$5 the Anglican Communion and is a contributing factor in some grant application5. During the year the global turbulence of the war in Ukraine and domestic politlcal upheavals have affected the levels of income available to us. Grants In 2022 the OBF approved grants of £123,700 from its General Fund- £90,700 to be distributed in that year and the remainder promised for subsequent years. It also distributed £32,000 from its India Funds to the United Churches of the'lndian Sub-coniinent,. In June 2022 the 08F made the following new grants from its General Fund.. Blshopric of Yei. South Sudan- a one-off grant of £7,000 towards the building of the bishop's house was agreed by Counci1. Blshoprlc of Lweru, Tanzania~ a Brant of £16,000 over two years, with a report on progress In May 2023. was agreed by Council towards the building of the bishop's house. Province of IAMA- a gTant of £25.000 to the Province to be used, at the discretion of the province, to support the stipends of the new bishops over the next three years. As there was a delay in the election of their new Primate, who would be involved in the decisions as to which bishoprics would receive support, the transfer of the grant was put on hold. With the election completed in early 2023. the grant was transferred following a decislon at the June 2023 Council Meeting. The postponed Lambeth Conference took place in the summer of 2022 and the OBF hosted a reception at the conference to publicise the work of the Fund. Following that meetin8 we received several applications at our November meetlng. At that meeting the following new grants were awarded from its General Funds.. 8i5hopric of Rokon- Requested around £7,oryJ towards the stipend of the new bishop. Trustees approved a Brant towards the additional 6 months of the first year as well as for the second and third year. £3,500 imrnediately, then £5,000, £3,000 approved. Total Ell,500 in addltlon to origlnal emergency grant. Lusitanian Church, Portugal- a request for support for the overall travel and accommodation costs of the bishop's rninistry. Trustees thought that giving a grant would be a huge encouragement to a global north church with many characteristics of 8lobal south. £12.000 total over three years- £5,0 IYr.11, £4.000 IYr.21 & £3,000 IYr.31 Approved. Blshoprlc ol Kallma. DR Con80- Request for approx. £8,000 for a secure fence around the bishop's residence, with a very detailed byd8et. Trustees considered it important to contribute towards the whole fence bein8 built due to insecure context. Approved one off grant of £7,000. Bishopric of Sunyanb. Ghana- a grant towards completion of repairs to the bishop's residence. The budget shows that the fundin8 IS to improve basics. not to make it luxurious and that they are also contributing to the work. Grant of £5,000 approved. Blshoprfc of SW Tanganylka. Tanzanla- a grant towards the repair of the bishop's car following a bad accident as the list of work in the estimate outlined. As travel is essential in this large diocese, trustees approved a one-off grant of £10,000, continent on other funds bein8 in place. 8i5hopric of Toliara. Madaga5car- a grant towards support of the stipend and transportation for the ministry of the bishop. The 8ishop recognises it will take time to build up the resources he needs and tailored his applicètion accordingly. Trustees also rectsgnised that
THE OVERSEAS B15HOPRICS FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icontlnuedl Madagascar needs support in their very challenging sltuation. Approved fund¥n8 of £4,500 IYr.11. £3000 IYr.21, £2000 IYr.31. Total £9,500 Bishoprics of SW, S and Pelotas. Brazil- a request for upgrading the bishL)p's houses. Due to thi5 being a modest request supported by photographic evidence and the flrst request received by the OBF from Brazil, trustees approved the full amount of £11,700. 8lshoprlc of Kèlo-Kell, ECSS- a grant over 3 years towards the renting of the bishop's house in Moyo. West Nile, Uganda and towards thè costs ol the bishop's ministry among the refugees settled in Uganda. Trustees approved £4,ocKJ IYr.11, £3,000 IYr.21, £2.000 IYr.31. Total of £9,000. The India Funds support the on-going work of the bishoprics in Indla. Paklstan. Bangladesh and Srl Lanka. The importance of these grants can perhaps best be gauged by the fact that the OBF. from both these general funds and further restricted funds, is able to offer a significant proportion of the amount of the bishops, stipends in the Church of North India. and to make considerable contributions to the other Churches that ale beneficiaries of these Funds. Pogtponed 2020 Lambeth Conference The Conference took place in the summer of 2022. The Council agreed that grants either already given or promised to the Lambeth Conference Company towards the costs of the Conference would be honoured. These grants enabled bishops, unable to pay their own air fares or ¢onferefflce fees, to come to Lambeth in 2022 as pari of their development and to support thelr episcopal ministries. As it wa5 anticipated that Covid Might continue to be a factor in 2022. the Lambeth conferen planning group decided that the Pre-Larnbeth H05Pltality Initiative, due to be offered by dioceses in Englarid, Wales, and Scotland, wou5d no longer take place. Participants in the Conference travelled directly to Canterbury. The OBF grants. agreed in 2019. to support certaln costs Incurred by these UK dioceses were no longer required. The return of these grants was rèquested in january 2022 and all monies transferred have been returned to the OBF. Rationalisation of the 08F funds Work continues to seek permission from the Charity Commlsslon to rationalise the different fund5 relating to China. the Indian Sub-continent and those in the Province of the Church of North India in the following mannef.. 08F China Fund- tts create a scheme where all the present China Funds can be incorporated into one fund and applied to all areas overseen by the China Chrlstlan Council,. OBF North Indla Fund - to rationalise all funds linked to individual dioceses in the CNI into one new Fund, in keeping with practice since the inception of the CNI. OBF Indla Sub-contlnent General Fund- to ratlonallse all the India Funds into this one fund. China Funds Trustee5 had hoped to discuss with the leadership of the China Christian Council the use and distfibution of the OBF funds held in their name. It was anticipated that this miBht happen on the fringes of the 2020 Lambeth Conference. When the Conference was postponed planning these conversations was put on hold hoping that, if the leadership come to the 2022 Conference, the conversations might happen then. Sadly, due to the ongoing prevalèncè of Covid in China the delegation did not travel to the 2022 Conference. Therefore, a review of the Use and disbursernent of the China fund5 will need to be dealt with in some other wav. In 2022, In line wlth permlssion granted by the Charity Commission. income from the China funds was used to support bishoprics where there wa5 a ministry to a significant Chinese population. The first 8rants of thi5 kind were agreed at the November 2022 meeting and made to the 8ishoprics of Mandalay and Yan8on, both in Myanmar.
THE OVERSEAS BISHOPRICS FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icontlnuedl Blshopscourt, Cape Town, South Africa During 2012 all the necessary arrangements were put in place to transfer ownership tsf 8ishopscourt (the home and office of the Archbishop of Cape Town since the 1840sl to a similar trusi in South Africa. At its meeting in November 2012 the Council of the OBF approved.. draft Deed of Trust establishing the Bishopscourt Episcopal Trust, thè principal objects of which are "to establish and maintain Anglican bishoprics within the provincè of Southern Africa, and in particular the Archbishopric of Cape Town" and draft Deed of Donation transferring to it the freehold of Bishopscourt and the associated funds. This transfer still continues to be delayed, due mainly to the complexity of the registration process of the 8ishopscourt Episcopal Trust in South Africa. The OBF Council has passed a resolution that when the transfer of the freehold takes place the capital currently held in all other South African funds held presently by the 08F will also be transferred to the new Trust.. the Cape Town English Endowment Fund, the Cape Town South Africa Endowment Fund, the Bloemfontein Fund, the George Fund, the Natal Fund and the Pretoria Fund. Governance Matters Trustees decided this year to give time at each CoL¢ncil meeting to review an a5pe¢t of its governance seeking to review issues and. where necessary. improve policies. The agreed pattern is.. Year I (Junel.. Governance Policies- Rules, Risk Register and Conflict of Interest Register. Year I INovemberl= Charity Purpose and objectives and cc*nsequent future major ta5ks150 allowing a high-level discussion every two years on how we feel God is calling us to steward the responsibilities we holdl. Year 2 (Junel.. Management Policies - Financial Controls including Reserves and Investment policies Ilncluding a presentation by CCLAlour fund managersl,. Diversity and Inclusion,. and Risk Register Year 2 INovemberl.' Strategic Partnerships on some occasions this could in¢lude participation by a key partner su¢h as ACF or St. Augustine's Foundation. The changes to the Rules outlined In last year's Annual Report were ratified at the June 2022 Council meeting. These were mainly in relation to the composition of the Council. As part of the exercisè, we also amended the Rules to cover our virtual mèetings and reviewed the patronage list IVice-Presidentsl which was deemed to be outdated. As a result of these changes. when they were ratified in June 2022, there were several changes in the trustee bodv.. Bishop Henry Scriven. Richard Woods, janice Price and Sue Parks stood-down as trustees and Bishop Gull Francis- Dehqni. Janice Proud, Edward Chaplin and Rana Khan become trustees. The OBF has always been well served by its trustees and valued the unique contribution each one makes to its work. We will rniss the wisdom and insights offered by Henry, Richard. Janice and Sue as we welcome all that our new trustees will offer to the work. Future Plans As the 08F specifically 5ervÈs those leading the Anglican Communion- its bishops- its own future will be linked to that of the Communion. The Coronavirus not only caL¢sed the postponement of the Lamberh Conference but also continues to challenge the mission and administration of all the Churches in the Anglican Communion as they seek to respond to the situations they face. The effects of the virus are likely to be factors in applications that will come to the OBF. We saw this year that many of the applications were for basic repairs to bishops, hou5in8 and stipends. We will continue to address how we might support the desire, in many place5 acr05S the Communion. to build up the capacity of the bishops through training, support, mentoring and retreat.
THE OVERSEAS BISHOPRICS FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icofttinuedl In 2021 the Anglican Communion inaugurated the new Prtsvince of Igreja Anglicuno de Mocumbique e Angolo- the Anglican Church of Mozambique and Angola IIAMAI. This wa5 forrned by the Anglican dI0Se5 in the two LusDphone countries that, until that date, had been part csf the Anglican Church of Southern Africa. In creating the new Province, the Communion also created 8 new dioceses. The OBF has already been approached to Offer support to the new Province in 2022 and beyond. During the year we responded to the support reqtsested. More genèrally, the OBF will continue to have calls on its resource5 to support the on-going work of blshops in areas of the Communion ch3llen8ed by poverty, war, disease and famine where the Church is often the 501e means of support for many comrnunities. The present global financial constraints will continue to rnake this contribution even more important. The OBF has continued its explorations in establishing links with other organisations with kindred aims. such a5 the Anglican Corrmunion Fund and St Augustine'5 Foundation, to ensure that available funding is targeted most effectivelv. Flnanclal review The total net assets for which the OBF has responsibility at the end of 2022 were £16,076,727 12021.. £18.111,1611. Of these assets.. Unrestricted funds I'the General Fund"). which can be used for the settln& up and maintenance of bishoprics generally, were £94,76512021.. £107,Ck)41. Restricted funds, which must be used for the support of bishoprics in specific named dioceses or regions Iparticularly in the Indian sub-continent, China, and South Africa), were £1,066.84812021.' £1,109.7661. the remainlng £14,915.11412021-. £16,894,391> were the permanent endowment funds of which £3.750,46012021: £4,248,355) generatès income for @eneral oblects and £11.164,64412021.. E12,646,0361 generates income restricted to specific dioceses or regions. The capital value of these funds, and the income generated by thern, fluctuate according to market conditions. Investment powèrs* pollcy and perforniance Investments are held within Church of England Funds that are managed by CCLA Ltd. The Councll reviews investment performance during the year, on the basis of reports received from CCLA Ltd. The funds are invested to maintain capital growth, whilst providing suitable levels of incorne to prtsvide a reliable grant stream to the bishoprics. Durin8 the year the total value of the investment funds decreased by £2,060,950, made up of losses on revaluation12021: increased by £1.017,836, made up gains on revaluation of £2,240,687 and disposals of £412,856). The amount of investment income received was £473.08812021: £456.7591. Reserves policy During 2020 the Council examined the requirements of the OBF in accordance with 8Ltidelines issued by the Charity Commission. The Council believe that the level of free reserves from the unrestricted General Funds should be not less than E40.000, in order to provide sufficient working capital and to deal with unforeseen requests for emergency funding. As at 31 Decernber 2022. as there are currently no designated funds, free reseNes ttstalled £94,765. The value of endowment funds held at 310ecember 2022 was £14,915,114. Golng concern The Council h35 assessed experted cash flows for 2023 and the 12 months beyond the date of signing. Incorne received until the date of approval of the financial statements is in line with the trustees, projections. CCLA, the Council's investment manager, have not communicated a chan8e to the expected investment income for 2023, despite challenging market conditions and continued 8eopolitical uncertsinty. The Fund has sufficient liquidity to ¢overgrant commitments already made and associated support Costs. The Council will moderate the grant making activity of the Charity as necessary to meet its reserves policy a$ Set out on above. Given this, the going concern basis of a¢counting in preparing the annual report and the financial statements continues io be adopted.
THE OVERSEAS BISHOPRICS FUND TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Icontinuedl Responslbilities of the trustees The Council is required to prepare financi31 statements for eath financial year that give a true and fair view of the state of affairs of the OBF and of its incomin8 re50urce5 and application of those resources for the period in question. In preparing those financial statements, the Council is required to.. selètt suitable accounting policies and then apply them consistentlv,. make judgernents and estimates that are reasonable and prudent.. state whether applicable accounting Standard5 have been followed (subject to any material departures disclosed and explained in the financial statements),. and prepare the financial statements on the "going concern. basls, unle5S It is inappropriatè to presume that the Fund will continue in business. The Council is responsible for keepin8 proper accounting records whlch disclosè with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements are correctly prepared. It is also responsible for safeguarding the assets of the 08F, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Council on 15 September 2023 and si8ned on its behalf.. Revd. Canon Mark Oxbrow Chair of the Council io
Independent Auditorfs Report to the Trustees of The Overseas Bishoprics, Fund Opinion We have audited the financial statements of The Overseas Bishoprics, Fund ('Ihe charity'l for the year ended 31 December 2022 which comprise the Slalemenl of Financial Aclivilies, Balance Sheet, Cash Flow Statement and notes lo the financial statements, including 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 {Uniled Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the stale of the charity's affairs as al 31 December 2022 and of its 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 Charities Act 2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing {UKI IISAS (UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls 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 slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wilh 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 slatemenls, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial slalemenls 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 doubl on the charity's ability to continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. Our rèsponsibilities 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo 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 idenlrfy such material inconsistencies or apparent material rnisstatemenls, we are required lo determine whether this gives rise to a material misstalemenl in the financial slalemenls themselves. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other informatson, we are required to report that fa¢l. We have nothing lo report in this regard. Matters on which we are required to report by exception We have nothing lo report in respect of the followiNg mallers in relation lo which the Charities (Accounts and Reports) Regulations 2008 requires us lo report lo you if, in our opinion..
the information gwen in the financial slalements is inconsislenl in any material respect with the Iruslees. report,. or sufficient and proper accounting record5 have not been kept by the charity,. or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement sel out on page 10, the Iruslees are responsible for the preparation of the financial slalernents 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 slalemenls that are free from material misslalemenl. whether due lo fraud or error. In preparing the financial slalemenls, the trustees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicablè, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or lo cease operations, or have no realistic alternative bul lo do so. Auditor's rg$pon$ibilitigs for the audit of the financlal statèmènt$ We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulalions made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence tho economic decisions of users taken on the basis of these financial slalemenls. Details of the exlenl lo which the audit was considered capable of delecling irregularities, including fiaud and nonrycompliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. ww.frc.or .ukJaudilorsres onsibililies. This description forms part of our auditor's report. Extent to which the audit was consldered capable of d¢tOCting irregularltles. including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstslemenl of the financial slalemenls from irregularities, whether due lo fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive lo those risks. induding obtaining audit evidence sufficient and appropriate lo provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charity operate5. focusing on those laws and regulations that have 8 direct effect on the determination of material amounts and disclosures in Ihe financial stalemenls. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP {FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial slalemenl items. In addition, we considered provisions of other laws and regulations that do not have 8 dlrecl effect on the financial slalemenls bul compliance with which might be fundamental lo the charity's ability to operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were regulations concerning the international transfer of money. Auditing standards limit the required audit procedures lo identify non-compliance with these laws and regulations lo enquiry of the Trustees and other management and inspeckn'on of regulatory and legal corresponden¢e, if any. We identified the grealesl risk of material impact on the financial statements from irregularities, including fraud, lo be within the override of controls by management. Our audit procedures to respond 12
lo these risks included enquiries of management and the Trustees about their own idenltfication and assessmenl of the risks of irregularities, sample lesling on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. Owing lo the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some rnalerial misslalemenls in the financial stalemenls, even though we have properly planned and performed our audit in accordance with auditing siandards. For example, the further removed non-compliance with laws and regulations lirregul8rilies} is from the events and transactions reflected in the financial stalemenls, the less likely the inherently limited prOdureS required by auditing standards would identify it. In addition. as with any audit, there remained a higher risk of non- deledion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of internal conlrols. We are not responsible for preventing non- compliance and cannot be expected lo delect non-compliance with all laws and regulations. Use of our rgPOrt This report is made solely to the charity's Iruslees, as a body, in accordance with Part 4 of the Charilies IAccounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's trustees those matters we ar8 required lo slate lo 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 lo anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. sw LL.L. L&F Crowe U.K. LLP Slalulory Auditor London Dale 27 October 2023 CTDWtU.K. LLP iseligible foTappoinimenl as audiwrofthe charity by virtueof itseligibility for4pwllmen1 asall0t0fa Company Uler liort 1212 ofth¢ Compani¢s Act 2(I]6. 13
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEARS ENDED 31 DECEMBER 2022 Unre5tric¢ed Restricted Funds Funds Endowmellt Funds 2022 Total Notes Ineome from: Investmettis 351,940 473,088 Total income Expeodliure o charitable gctlvides: Support of bishop$ {126,5671 {320,0051 1446,5721 Total ¢xp¢nditu TotAI Income less expenditure before gain on investments Gain on investments (5,4191 31.935 26516 18201 {I2391 (6,IXIOI 112,2391 180.8531 148,9181 6.iXJO 144918) (1,979,277) (1.979,2771 12.060,9501 12.034,4341 Net expenditure TTansf¢rs b¢tw¢¢n fund5 Net movemellt ljk funds (1,9792771 (2.034434} Total funds ai l January.. Totsl funds xt JI December 107.1HJ4 ,109.766 16,894J91 18,111,161 94,765 1,066,848 14,911114 IA07A727 Unrestr&cted Funds Restricted Funds Endowment Funds 2021 Total No¢¢$ Income from.. Inv¢strn¢nts 109.347 347.412 347,412 456,759 Toial income 109,347 450,759 Expenditure on charitable activities: Support of bishops Toial ¢xrKndirur¢ Toi#l illcome less expendlture before gaill on investments Gain on inv¢smiMt$ 147,1471 1184.2791 1412,8561 1412,8561 1644,282) 147.1471 1184,2791 1644.282) 62.2(rt) 163.133 1412,8501 1187,523) 1,098 84.013 2.155,576 2.240.687 Net income 63.298 247,146 1,742,720 2,053,164 Trdnsferg between fijnds Net rnovement ID fvttds 63398 247.146 1.744720 4053,164 Total bjnds at l January.. Totsl funds •t 31 December 43,7(kS 862,620 16,Q57,997 107.( 1.109,766 16I94J91 14111,161 14
BALANCE SHEET AS AT 31 DECEMBER 2022 Unrestricted Fund5 Restricted Funds Endowment Funds 2022 2021 Toial Total Note5 Fixed assets Tangible agsets lftvestsnents 7,893 601.716 14,915.114 15.524.723 17.585,673 7193 601.716 14,915,114 15,524.723 17,$85,673 Current a55etS Cash & cash equivalenis 150,004 581.593 731.597 597.383 Debtors 28J74 80,230 114.604 114,898 178J78 667.823 84(201 712,281 Liabilities Crediior5.' amounts falling due within one yeor (80,5061 1202,6911 1283,1971 1180,0761 ¢urrettt a$$et$ 97,872 465,132 563,004 531205 Craliiors.. amounts falltng due after one year (i i,o(x)} {11,0) (6.7171 TotAI tt¢¢ Issets 94,765 1,066.848 14.915.114 16,076.727 18,111,161 Th¢ futtd$ of tb¢ ¢h#rlty Unr¢sMct¢d funds- Generdl 94,765 94,765 107.004 Resththed funds 1,066,848 1,066,848 1,109,766 Endowneni funds 14,915.114 14.91&ll4 16.894,391 To¢*1 fuuds 94,76S 1,066.848 14,915.114 16.07fy727 18,111,161 AppToved and authorised for issue by the Council on 15 September 2023 and signed on its behalf.. Revd. Canon Mark Oxbrow Chairnlan of Council 15
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 Nol¢s 2022 2021 Re¢onciliation of net income to net cash flow from operating Net Income for the year las per the 5tY4tement of flllaTrel&l 26,516 {187,5231 Inv¢smi¢nt incorne 1473,0881 107,404 294 1456,7591 160,8051 11,4531 {7O6,540} Increa%¢ I ID¥T¢a%el in ¢redit(>TS tkcrease I Ilncreasel in debtors Net casb tlow (used Inl operatlng aetlyltles 1338.8741 C$h flow$ from Investlthg 2etivl¢l¢$ Investment income 473,088 456.759 Disposal of fixed assei investments Net cash flow provided by Inve5tlng aetlvltles 412.853 869,612 473,1)88 N¢t c4$h flow pryivlded by firyancing activitles 134,214 163,073 Cash and cash equivalents at the start of the year 597,383 434.310 Cash AJJd cash equlvalenis ai the ettd of lht y¢r 731,597 597J83 Analysis of cash & Cash equlvalents & ehxnges iD Det debt: AtlJan 2022 C3$h floTrvs Other changes At31 Dee 2022 Cash at bank and in hand 597.383 134,214 134,214 731,597 731,597 TOTAL 597,383 16
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEfvIBER 2022 ACCOUNTING POLICIES Legal Statu5 The Overseas Bishoprics, Fund {"OBF'J is a Charlble trust, founded in 1841 as'The Colonial BEshoprics Fund,, registered with the Ctwity Commission {no. 2453341. Basis of Preparation The chaEity'S fsnancial information Iw been prepared in accordance with.. Financial Reporting Standard 102.. The Financial Reporting Standard applicable in the UK and Republic of treland I'FRS 102,1. AccountitJ8 and Reporting by Chariries.. Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial RekY)rting Standard applicable in the UK ad Republic of treLand (FRS 1021 {"the SORP,). The OBF meets the derlI10n of a Public Benefit Entity I'PBE,) as set out in FRS 100, and therefore applies the PBE prefLxed para8raphs in FRS 102. The fJnan¢ial imfomiation has been prepared oll the historical cost basis {except for the revaluation of inv¢stmenrs) and on the accruals basis. These fanCIal statements comprise all theOBF'sunrestricted, designated, reStriCdaAd endgwment filnds drawn up lo 31 De¢¢mber each year. A SUTnmary of the accounting policies, which have been applied ¢onsistently acmss the group, is set out below. Going Concern The Council has assessed expected cash flows for 2023 and 2024. Incom¢ re1ved until tbe date of approval of rhe finan¢ia15tatementS is in line with the ttusiees. projectiolls. CCLA, the Council's inVestent manager, have noi eomtnunicated a change to the expected investment income for 2023, The Fund h&g sutTi¢ient liquidity to cover grant COlIlltiitrn¢nts already made and associated support costs. The Council will moderate the grant tnaking activity of the Ciwity as necessary to meet its reserves policy as set out on above. Given this. the going concern b&sis of accounting in preparing the aJJnual report and the fjnancial statements continues to be adopted. Funds Structure Endowment funds are capital funds wher¢ th¢ Council has no power to spend the capiral but where the income generated frotn the invested fund5 is available for expenditure. Endowment fvnds fall into two Categories.. endowlnents for specific dioceses or provinces,. and elldowments for the general objects of the charity. Income from endowments for SPlf1¢ dioceses or provinces is tr¢ated as restricted incotlle and income from endowment for the general objects of the charity is treated as unrestri¢ied income. ID¢ome and Expenditure Dividends and other interest are recognised on an accruals basis, Grants are recognised as a liability when a fjrm commitment to pay the grant 1$ mad¢. 17
Investment and Gains and L05se5 on Investment Assets Investtnents are slated in the financial Srements at market value. Gains or losses on investments are dis¢losed 2n ihe Statement of Financial Activities. TAXATION The Fund is a registered charity and as such is exempi from Wiion on its iucome and gains to the exteni that they are applied to its clwitable pU0$es. INVESTMENT INCOME Unrestricted Restrleted Endowmtnt funds funds fund$ 2022 2021 Dividends Interest on cash and deposii funds 112,707 351,924 464,631 450,609 8.441 16 8,457 150 121,148 351,940 473,088 456,759 SUPPORT OF BISHOPS Support of bishops comprises grants awarded from unrestricted funds at the discretion of the Council and payments of net income from restricted nds. Support costs comprisin8 of admtnistra¢ion expenbe5 of the Fund plus Governance Costs have been allo¢ated to this actLVity cost category. Unrestricted Restrlcted Endowment funds funds funds 2022 2021 Grants committed Grants Ti(ten back Transfer to JMECA 135,552 {17,5101 282,613 418,165 (17,SlO> 208,111 (7,0001 412.856 Support costs 8.525 37,392 45,917 30J15 126,567 320.005 446,572 644,282 2021 expendittjre was made up of £47,147 of unrestricted expendire and £184,279 of restricted expenditure. Additionally, a tyansfer of the assets held in the Egypt fid was made to the Jerusalem and the Middle East Church Association IJMECA). Governance costs, included within support costs, are made up 2022 2021 Auditors remuneration Legal Fees 7,650 7,150 18
PROPERTY The Fund is the trusiee of an historical house, Bishopscourt, in Cape T0ry), occupied by Ihe Ar¢hbishop of Cape Town and a maintenance fund consisting of a portfolio of investm¢nL% held in respect of the Archbi5hopri¢ of Cape Toivn. The rnainienance of the house is financed locally and has been for oyer a century. The Council last received a valuation a5 at 31, May 2013 of £4.3 million for the property and £942,000 for the investments. As the Fund has no ¢ontrol over or beneficial interest in the asseis, Ihey have been included at nil value in the accounts. The Council had originally hoped to transfer ihe tille of these assets to a newly fornied charitable trust in South Africa for the benefit of the Ar¢hbishopri¢ of Cape Town, during the latter part of ?013. There has however been no change in 2022 and it 18 hoped that matters will be concluded as soon as possible. INVESTMENTS Fund Unrestrlcted Restrlcted Elldowment Endowment Total funds funds for general for specifie Investments obje¢t$ diocese Total invesiments 2022 2021 Investments Balance at I January Disposals Net surplus on revaluaiion 8,713 682,569 4.248,355 12,646.036 17,$85,673 15,757.841 {412,856) (820} (80,8531 1497,885) {1,481,392) {2,060,950) 2.240.687 Balance as at 31 Decemb¢T 7,893 601,716 3.750,470 11,164,(A4 IS,524,723 17,585,673 Fund Unrestricted Restrieted fund5 funds Endowment for Eudo]nent for gen¢r41 objects speeifie diocese Total investments 2021 Illve$tmellts Balance at I January Additions Disposals Net surplus on revaluation 7.615 598,555 3.714,284 11.437.387 J5,757,841 {412,856) 1.621.505 (412,856) 1,098 84.013 534,071 2,240,687 Balance as at 31 December 8,713 682,569 4,248,355 12,646.036 17,585.673 See note 5 in respeci of investments held in the Bishopscourt maintenance bJnd. All investtnents are held within the CCLA CBF Church of England Investment FLmd. 19
DEBTORS 2022 2021 Atllouni falling due wiihin one year: Accrued income 114,604 114604 114.898 114.898 CREDITORS 2022 2021 Amount falling due within on¢ year: Grants payable Accrued eKpenditure 64,762 218,435 283,197 168,064 12,013 180,077 2022 2021 Amount falllng due after one year: Grants payable 11,000 6.717 i 1,000 6,717 Creditor balances consist of botlL dividend incom¢ due to the provinces. and generdl fund grants awarded by the Trustees. EMPLOYEES AND TRATr4SACTIONS WITH TRsTEEs Th¢r¢ weTe no employees during the year. No remunerdtion be¢n paid to Council Members during the year. Reimbursemeni of travel & subsistence expense$ paid to Council Members during the year was £216 {2021.. £nill. Secretarial fees of £1 1,686 clwged by Barlow Intetventions Lilniled were expensed dLfftng 2022 (2021.. £9,735) for services provided by Stephen Lyon, OBF Secretary. Stephen Lyon. along with hi$ r¢lat¢d parties, ts the sole owner of Barlow Intetvelltions Litnited. As ai 31 December 2022. £5.511 was owed to Barlow Inierventions Limited (2021: £4.863). Ther¢ was no oth¢r remuneration to key management persoDnel during either the Current or previous years. 20
There are 34 {2021.. 341 re.%tricted income funds, the largest being the OBF China General Fund, valued at £708,000 al 3 1 De¢ember 2022 (£720,000 at 31 December 2021>. Unrestricted Funds: General Fund This fund is for general use in meeting the OBF'S clwitable objeciives and aTe not designated for specific purposes. ii. RELATED PARTIES During 2022, secretarial fees of £1 1,686 were charged by Barlow Interventions (2021.. £9,735). See Note 9 for further detail5. 22