OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-12-31-accounts

SHEFFIELD DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

The Diocese of Sheffield is called to grow a sustainable network of Christ-like, lively and diverse Christian communities in every place which are effective in making disciples and in seeking to transform our society and God’s world.

Company Number 196087 Charity Number 245861

SHEFFIELD DIOCESAN BOARD OF FINANCE

CONTENTS

Page
Annual Report 1 - 21
Independent Auditor's Report 22 - 24
Statement of Financial Activities 25
Balance Sheet 26
Statement of Cash Flows 27 - 28
Notes to the Financial Statements 29 - 59

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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 2025.

In signing as Trustees, they also sign the strategic report sections in their capacity as Directors. This combined report satisfies the legal requirements for:

FOREWORD

Welcome to the Annual Report for the Sheffield Diocesan Board of Finance.

There is much to celebrate in 2025 as the Sheffield Diocesan Board of Finance has continued to further the primary charitable objective to promote, assist and advance the religious and other charitable work of the Church of England in the Diocese of Sheffield, bearing faithful and fruitful witness to all that God has done for the salvation of the world through the life, death and resurrection of the Lord Jesus Christ. I write this on the Eve of the Feast of Pentecost and I pray for a fresh outpouring of God’s Holy Spirit, across our Diocese – the Spirit of power, and love and selfcontrol as the Apostle Paul reminds Timothy (2 Tim 1.7).

It is exciting that we have seen the growth and development of existing ministries and also secured significant investment to enable new and diverse mission in the key strategic areas identified through the wide consultation undertaken across the Diocese in 2023 and 2024 as part of our Strategy Refresh programme of work, led by our very able Director of Strategic Programmes, Alex Shilkoff and the former Archdeacon of Sheffield and Rotherham. It was noteworthy that the consultation issued a plea for continuity: so we are retaining our ‘3Rs’: Renewed in the power of the Holy Spirit to receive the Light of Christ; Released in the power of the Holy Spirit to walk in the Light of Christ; and Rejuvenated in the power of the Holy Spirit to reflect the Light of Christ. One key shift was to give more dynamic focus to our work for equality and justice, under the Released strand.

In this important review of our financial activities throughout 2025, and our financial position at the end of December 2025, you will see that we still face challenges financially. However, we do so with a robust strategic plan, an excellent team of dedicated professionals, and a hopeful resilience that recognises that God is at work in our communities and in the lives of the people that we serve.

It has been a great encouragement to see that our usual adult Sunday attendance, our usual children’s Sunday attendance, our average adult weekly attendance and our average children’s weekly attendance all grew again in 2025 over 2024. It is the third year running that all three measures have grown, admittedly only marginally. Another encouraging statistic is the fact that there were more confirmations in the Diocese of Sheffield in 2025 than in any year since 2018. This, I believe, is indicative of a real shift in our nation. For most of the almost 40 years in which I have been exercising ordained ministry, it has felt as if the tide of faith in this country has been going out. Right now, it feels as if the tide may be coming in again. It is interesting to note that sales of Bibles in the UK have jumped by over 100% since 2019 and by over 27% in 2025 alone.

2025 was a year of considerable change for our Diocese. For one thing, we heard news in the Spring last year that our bid for additional funding from the Strategic Mission and Ministry Board (which will help us to invest further in the growth we are experiencing) had been successful: it amounts to something over £15m of investment for the period 2026-2028, rising perhaps to £17.5m, with a further in-principle award for the period 2029-2031, which could amount to the same sort of sum. This creates some financial headroom for the Diocese, although it is worth noting that the SMMI Board remains cautious about releasing funds for the thing most Dioceses most urgently need, which is funding to sustain ‘ordinary’ stipendiary ministry. However, I have accepted an invitation from the Archbishops to chair the Triennium Funding Working Group for 2029-2031 and I am certain that issue must be addressed urgently in that funding round.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

FOREWORD (continued)

There is a threat to the missionary momentum we are experiencing in this Diocese, and that is the projected decline in the number of stipendiary incumbents available to serve across the Church of England by 2034. There are currently about 7,000, but around 200 more are leaving stipendiary ordained ministry each year at present than are joining it, so that best estimates suggest there may be as few as 5,500 by 2034, unless the trend is reversed. I had already flagged this as an urgent issue in my Presidential Address to Diocesan Synod in July 2024. I am pleased to report that a discussion at a meeting of the House of Bishops in York in May 2026 finally addressed this crisis with the necessary clarity and the urgency. May I urge you please to pause, right now, to pray, that God will raise up a new generation of those called into the ordained ministry of the Church of England.

The other major changes in the Diocese in 2025 relate to the appointment of the former suffragan Bishop of Doncaster as the Diocesan Bishop of Coventry, and of the former Archdeacon of Sheffield and Rotherham to be the Area Bishop of Wakefield. I am delighted to have made two excellent appointments in their stead: the Rt Revd Leah Vasey-Saunders to be the new Bishop of Doncaster and the Ven David Gerrard to be the new Archdeacon of Sheffield and Rotherham. Several more members of the Bishop’s Senior Staff Team and of our team of Associate Archdeacons are approaching the point at which they will be ready to take on wider responsibility and I fully expect to export a few more of our gifted colleagues in the course of the next 12 months. After all, in the end it is not the revitalisation of the Diocese of Sheffield that we seek, much as we long for that; it is the coming of the Kingdom of God and as a means to that end, the revitalisation of the whole Church of England. If our ‘exports’ further that end, by the mercy and grace of God, then thanks be to God in our Lord Jesus Christ.

Although the audit climaxed this month, in 2026, not 2025, it would be remiss not to note here the considerable preparations in which our Diocesan Safeguarding Team were engaged last year, together with LJ Buxton our Deputy Diocesan Secretary and key Cathedral staff, to prepare the ground. There will be much more to say about this a year from now, because the report of the INEQE audit team will have been published. Suffice to say here that I found the perspective of the audit team, fed back to us at the end of the audit week as preliminary findings, to be perceptive and fair: their insights rang true almost entirely and that must reflect the quality of the work done in preparation by our DSO, Siân Checkley, and her colleagues.

Finally, I should note, because of the implications for my diary and also for the reputation of the SDBF, that in 2025 I accepted the invitation of the former Home Secretary, Yvette Cooper, to chair a statutory public inquiry into events at Orgreave on 18 June 1984. I have offered ‘an indicative one day a week’ to this work, and have agreed a realistic ‘day rate’ of financial remuneration, which will be paid over to the SDBF to compensate for my time. It is anticipated that the Inquiry will report about two years from now in the Spring of 2028.

I offer you this report with great thankfulness to the Lord, who continues to sustain us across the Diocese as we seek his glory . ‘Worthy are you, our Lord and God, to receive glory and honour and power, for you created all things and by your will they existed and were created’ (Revelation 4.11).

The Rt Revd Dr Pete Wilcox Bishop of Sheffield

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

FOREWORD (continued)

2025 was another year where we saw growth and increasing confidence that our strategy of renewal, release for mission and rejuvenation of our Diocese is becoming increasingly embedded and fruitful.

Diocesan Synod approved a deficit budget for 2025 as part of the long term strategy to invest in the foundation of new structures within the Diocese in order to facilitate sustainable growth in the years to come. This also included increasing our funding for safeguarding to enable a robust delivery of our commitment to a safer Diocese for all.

The end result for 2025 was a deficit of £1.1m; which was substantially less than the originally budgeted deficit.

There are several reasons for this, primarily:

  1. The contribution of £1m from the Archbishops’ Council in respect of transition funding which was not confirmed at the time the 2025 budget was approved.

  2. The close control on costs and overheads, together with clergy vacancies being filled at a slower rate than forecast during the year, albeit clergy numbers were close to those budgeted by the end of the year.

It is heartening to see the strong growth in attendance, reported in 2024, continued across the Diocese in 2025. We note, and particularly value, the continued support from the Church Commissioners in recognition of the number of Low Income Communities within our Diocese.

At the end of the year, overall funds on our balance sheet have marginally reduced to £58.6m compared to £59.8m in 2024. However, our unrestricted general funds stood at £6.0m at 31 December 2025, an increase from £5.5m in 2024. This is because we were able to make £1.2m transfers between funds in the year which was £0.5m more than the £0.7m general fund deficit.

As long as we continue to strategically manage our restricted and endowed funds to support our limited unrestricted general funds in the next few years, this will give us a little more headroom for us to see the fruits from our long term strategy. Work continues to manage our land, assets and funds strategically, unlocking value for mission when and where we are able to.

We have however seen an unexpected loss on our investments, primarily with one investment house, whose performance has been of recent concern and is falling behind their peers. As a result the Diocese’s Finance and Property Committee has established an investment sub-committee to revisit our investment policies and to review which investment vehicle might best serve our long term needs.

Ian Walker Chair of Sheffield Diocesan Board of Finance

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

LEGAL OBJECTS

The Sheffield Diocesan Board of Finance’s (“SDBF”) principal object is to promote, assist and advance the religious and other charitable work of the Church of England in the Diocese of Sheffield by acting as the financial executive of the Sheffield Diocesan Synod. The objects of the Diocese of Sheffield cover most of the County of South Yorkshire with a small part of the East Riding and one parish in North Yorkshire.

The SDBF has the following statutory responsibilities:

STRATEGIC AIMS AND OBJECTIVES

The SDBF manages the financial aspects of the provision of ministry within the Diocese ensuring appropriate personnel and financial resources to assist the Diocesan Synod, Bishop’s Council, deaneries and parishes to further the mission and strategic priorities.

The Diocese of Sheffield continues:

In promoting the whole mission of the church (pastoral, evangelistic, social and ecumenical) the Trustees are confident (having had regard to Charity Commission guidance) that SDBF delivers public benefit. This is achieved through community engagement, resourcing education and supporting those in need both spiritually and physically.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

ACTIVITIES AND ACHIEVEMENTS IN THE YEAR

Introduction from the CEO

It is a privilege to introduce this Annual Report for the Diocese of Sheffield, reflecting on a year marked by both challenge and encouragement as we continue our journey of being Renewed, Released, and Rejuvenated.

In the year we received confirmation from the Strategic Mission and Ministry Investment Board that we were successful in our application for significant funding to support our bold and ambitious strategic plan for growth in mission and ministry across the Diocese of Sheffield, this confirmed award of £17.5 million for 2025–28, with an inprinciple commitment of a further £18.3 million for 2029–31 represents substantial investment and confidence in our work across our programme of transformation 2020-2025 and in our robust planning for the next phase.

We do not underestimate the work needed or the challenges still faced by the communities we serve but we are committed to continued investment in the communities and people we serve. We continue to see steady momentum across all three strands of our strategic vision and the initial phases of implementation across our strategic programme 2025-2031. The Statistics for Mission for 2025 show that there are positive signs of ongoing recovery.

2025 was a year of planned financial deficit, approved by Diocesan Synod, as we pressed ahead with bold investment in people, systems and structures to enable sustainable future growth. While the economic backdrop remained difficult, particularly for our poorest communities, the Diocese has shown flexibility and hope. Encouragingly, overall participation figures have continued their upward trend, and many of our mission and ministry indicators show meaningful progress.

Despite running a deficit, prudent financial management means our unrestricted general funds saw a marginal increase during the year, and we are stewarding our assets and reserves carefully. We give thanks for the generosity of parishes, the dedication of clergy and lay leaders, and the efforts and engagement of those who serve on our boards and committees.

As we look to the future, we remain committed to nurturing a Diocese that is Christ-like, lively and diverse in every place.

Katie Bell, Chief Executive Officer & Diocesan Secretary

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Progress Against Our Strategy In 2025

Work supported by National Church Funding

Strategic Transformation Funding

The Transformation programme – a multi-year award of £5.6m from the Archbishops’ Council’s Strategic Investment Board in 2020 – supports our 3Rs strategy delivery with continued good progress through 2025. The coming year will see an independent evaluation of this work and this will inform our ongoing learning and development. More details of our 3Rs strategy can be found here: https://www.sheffield.anglican.org/our-diocese/who-we-are/purpose-vision-andstrategy/our-vision/

Strategy refresh and the Strategic Mission and Ministry Investment Programme

In parallel to launching the refreshed 3Rs strategy, 2025 saw us successfully secure £15 million of funding from the Archbishops' Council to continue our strategy delivery across the diocese in 2025-28. This funding represents phase 2 of some projects that have been proving successful, investment for key buildings to make them fit for mission and expansion of social justice work. We will undergo a significant review with the national church in 2028 with a view to securing the second tranche of funding for 2029-31.

Impact of Renewed

Over 1,500 people have now signed up to the Prayer Community and are praying for the renewal of the Diocese. Please join us: sheffdio.org/prayercommunity.

We are committed to equipping church leaders to help people understand their call to be Lights for Christ. We continue to have good engagement with our discipleship resources and support. 515 adults have attended Personal Rule of Life workshops across the Diocese and more workshops are coming up. There are now 15 Lights for Christ Champions in place in all but two deaneries; they share resources and help to promote a culture of whole -life discipleship in their communities. Following successful pilots at Heeley and Carver Street, Lights for Christ Children’s Journals are available for all churches to purchase.

Impact of Released

76% stipendiary incumbents are now on an Oversight Minister role description. 95% of those are being coached by an Associate Archdeacon -Transition Enabler, helping them to flourish effectively in their ministry.

Beth Burras, formerly Director of Focal Ministry, is now Lead Lay Ministry Enabler. Beth’s new role means that all Lay Ministry Resourcing is under one hat which will help with coordination of all our different types of Lay Ministry. Beth is also now Warden of Readers, as well as Warden of Focal Ministers. Three Assistant Wardens of Focal Ministry are now on board; they will share in the promotion of Focal Ministry, the delivery of ‘Getting Ready’ training and pastoral support for Focal Ministers.

22 people are doing the Foundations course in the coming year; our highest number ever and a very diverse group of people.

Three new Readers were licensed (for the first time in four years) at the Celebration of Lay Ministries Service in September 2025. Training for licensed lay funeral ministers also started in October 2025. Beth is reviewing and reimagining training across lay ministry, including a survey of all lay ministers to find out what kind of training and development they would like to see.

Our Mission Area Support teams continue to support parishes across the Diocese. The Church Operations & Buildings (COBs) Team has supported 127 parishes so far this year with a range of tasks, including training on buildings maintenance and governance, practical help with urgent maintenance issues, advice on large buildings projects and working with churches to develop fundraising plans. The team are also currently responsible for six church buildings at different stages of investigating the closure process.

It is now three years since the rollout of contactless giving devices by national church. We allocated 30 devices which have generated £107k from contactless machines and £30k in web donations for churches across the Diocese.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Impact of Rejuvenated

Funding from national church is helping us to significantly accelerate our plans to revitalise parishes across the Diocese; there is much to celebrate!

Our Revitalisation project – to revitalise five places that have mission potential and / or a strategic location with a dedicated team - is making good progress. Full teams are now in place at St John’s Park, St Vincent’s Mission BMO Doncaster and the five parishes forming Mission Area R4 in Rotherham (Greasbrough, Rawmarsh, Kimberworth, Kimberworth Park and Thorpe Hesley). These places are already seeing growth of people coming to know Jesus. Will Gowers is also now in place at Bradfield as Curate in Charge.

Our successful application to national church for triennium funding also includes:

There is much to celebrate in our support for Children, Young People and Families (CYPF) ministry too. Our new Centenary Project Volunteer Support has launched; this involves placing an existing Centenary Project Worker in a parish for 3 to 5 hours per week (over 3 to 6 months) to work with volunteers to launch or rethink CYPF ministry in their parish.

Centenary Project

The Centenary Project remains an important part of the Diocesan approach to resourcing mission and ministry with children, young people and families. In 2025, the project reached it's 10 year milestone and published the findings of a 'Ten Year Review'. The report commended the Centenary Project's innovative approach and celebrated the missional energy for engaging children and young people.

During the year, the Centenary Project worked with 2,850 people through registered groups and activities. There were 2,116 sessions of 360 different ministries and 305 volunteers supported the activities. There were over 58,000 additional points of contact through schools work and unregistered activities.

The additional funding for the Centenary Project has meant that a large programme of recruitment is underway to resource more churches with children, youth and families' workers. The roles are being deployed where they can have the most significant impact. We've also launched a new strand of support for volunteer led ministry. The Centenary Project continues to be overseen by the Programme Board.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Education

Church of England Schools are a vital part of the work and ministry of the Diocese. There are 38 primary schools and 1 secondary school in the Diocese of Sheffield.

The Diocese of Sheffield Board of Education (DBE) remains committed to the development of effective collaboration with, and between, our Church Schools and to the supporting and enrichment of Church Schools’ distinctive offering of teaching and learning within a Christian context.

The priorities of the DBE remain as follows:

Centrally organised and provided Diocesan support has continued. The Diocese has renewed support for schools preparing for their SIAMS inspection. Training has also been undertaken in “Understanding Christianity.” During 2025-6, this has taken the form of a refresher for schools long established with this approach. Training has also continued to support the development of RE, provision for collective worship and the leadership of schools.

A significant focus for developmental work has been spirituality in education, with the Diocese’s approach proving effective in schools, as evidenced by inspection evidence. The new guidance introduces the idea of a ‘spirited curriculum’ whereby colleagues identify aspects of spirituality within the life of the classroom.

In promoting the national “Growing Faith” agenda, working in the intersections between homes, schools and churches, the Diocese has “Lights for Schools”, a programme spanning an annual cycle of seasons and events. This includes suggestions for parish churches to grow their connection between church and school. This has been complemented by the development of the web site to support schools in this development.

A focus in the Autumn was on the use of the Lord’s Prayer in schools.

All our SIAMS inspections have received the judgement that, through their vision and practice, they are living up to their foundation as Church schools and enabling pupils and adults to flourish. This is helped firstly by the emphasis this Diocese has long maintained upon the whole school being clear about their distinctive Christian vision, and secondly, by the Diocese’s development of an understanding of spirituality in the life of the school.

Since September 2024, OFSTED has ended single headline judgments for schools. Based on the new grading, the DBE is able to report that education remains good in the schools inspected under the new framework (though OFSTED’s way of reporting this fact has changed). There is no unsatisfactory provision in Diocesan schools.

The Diocese continues to thrive educationally through the excellence of leadership provided by the dedicated team of Headteachers, Executive Headteacher and Heads of School, supported by leadership at every level within the staff team. The transition across academic years had the lowest level of turn-over in leadership posts since the pandemic, with only one change of personnel at Emmanuel Junior. However, the DBE have remained alert to the pressures on school leaders, with a particular awareness of the heightened level of parental complaints. This is not a reflection on quality in education but is, rather, reflective of a national trend prompted by various factors, including the increasingly complex needs in the classroom and the use of AI to generate emails.

The Diocese continues to work with schools that wish to convert to academy status. 75% of our schools have converted or are in the conversion process. The Diocese of Sheffield Academies Trust (DSAT) and James Montgomery Academy Trust (JMAT) continue to be the two voluntary aided trusts. During the past year the Diocese re-brokered the St Mary’s Academy Trust (SMAT), the trust shared with the Diocese of Leeds. DSAT, our Dioceseled trust, now serves 17, expanded to include 3 additions to the trust, taking it to a trust of 20 schools. Relations between Diocese and trusts remain wholly positive.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

The Board of Faith and Justice

As a Diocese we are passionate about issues of social justice. Much of this work is co-ordinated through the Board of Faith and Justice. The Board’s work is shaped by the strategy document Salt and Light – A strategy for serving and transforming our society and God’s World. In particular, the Board has focussed on developing the Diocesan response across the last three Marks of Mission of the Anglican Communion:

Throughout the year, the Board played a vital role in promoting social justice, fostering inclusivity, and supporting the working groups listed below. The board consists of dedicated individuals who worked tirelessly to address pressing issues and make a positive impact on the lives of people in the Diocese. Moreover, the board actively engaged with various advocacy efforts, both at the local and national levels. They voiced their concerns and opinions on social issues such as racial justice, environmental sustainability, and social justice. By actively participating in discussions and advocating for change, the board worked towards creating a more just and compassionate society.

The board carries out much of its active business through working groups, each dedicated to a specific area of Salt and Light concern with terms of reference and membership established by the board. Throughout 2025 the following working groups were active: Mental Health, Diocesan Resource Group for Seniors (DRGS), Black, Asian and Minority Ethnic Anglicans (BAME), Dementia, Poverty & Inequality, Global Justice, Climate Change and Environment.

In 2024, with funding from the Diocesan Investment Programme Racial Justice stream, we were able to appoint a Racial Justice Officer and a Racial Justice Administrator/ Researcher. During 2025 the team has developed of our project strategy, with the purpose of the promoting equality, diversity, inclusion and belonging across the Diocese. the key project deliverables are:

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Environment/Net Zero

Caring for creation is a core part of Christian discipleship and responsibility. The Church of England has committed to working towards Net Zero carbon emissions by 2030. The Sheffield Diocesan Synod adopted the Diocesan Net Zero Action Plan in November 2023, and over the last two years the Diocese has been busy meeting the priority actions from the plan.

Grants, audits, technical advice and match-funding are available to support churches and projects. Energy audits, heating upgrades, insulation, and smart controls are helping our churches reduce emissions and improve comfort. Switching to renewable energy tariffs, installing LED lighting, improving controls and better insulation are significantly reducing emissions and costs. Parishes completing the Energy Footprint Tool for three consecutive years reduced emissions by 17% (from 1,098 tonnes of CO2 to 910 tonnes CO2).

Many parishes are reviewing and planning replacements or upgrades to their heating systems and buildings as a result of the energy audits, two notable projects completed so far are:

The SDBF Diocesan Surveyor is continuing work to improve the clergy housing to an overall EPC C rating through improvements to the fabric and energy efficiency of the buildings. Two pilot projects funded by the National Church Demonstrator Grants saw an air source heat pump and solar PV installed at both Wickersley and Manor vicarages. There are notable challenges in obtaining planning consent for solar PV on listed buildings which the SDBF property team are working hard to overcome.

Following the energy audit on the Diocesan Church House, the existing air source heat pumps and solar PV will be used to pilot a switch to electric heating in the offices. In 2025 the switch to a green electricity tariff enabled a 25% reduction of annual carbon emissions from 17.2 tonnes CO2 to 12.9 tonnes CO2 based on 2024 usage levels.

There remain many challenges ahead in respect of finance, capacity, expertise and knowing how to make the right decisions in a complex and ever-shifting environment. The four areas of key focus for 2026 will be; energy footprint tool completions, energy switching to low carbon tariffs, energy efficient lighting and further parishes to decarbonise. The level of engagement across parishes all over the Diocese is encouraging and we have a successful ARocha Echo Church award programme which is invaluable for engaging our congregations and transforming thinking and behaviours. The Diocese is working towards a Silver Eco Diocese award over the next two years, and 83 of 197 regular worshipping congregations are registered Eco Churches (42%) with 28 Bronze, 15 Silver and 1 Gold award between them.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Safeguarding

Safeguarding was and remains a key priority for the Diocese. In 2025 we continued to deliver training both online and in person. Including the roll out of the Parish Safeguarding Dashboard which is proving valuable to parishes in developing their safeguarding practice.

In 2026 we will welcome the INEQE audit team as part of their programme of work to review safeguarding practices across the Church of England. We welcome this and continue to prepare for this in year.

The team continues to offer safeguarding advice and support to the Cathedral in line with the service level agreement in place. This is a mutually beneficial partnership.

The contribution of Parish Safeguarding Officers was celebrated in June with numerous PSOs in attendance.

Senior Staff Appointments

The Senior Staff team saw several personnel changes during 2025, with the appointments of a new Bishop of Doncaster and a new Archdeacon of Sheffield and Rotherham. Our Diocesan Secretary-Chief Executive took a period of maternity leave during the year, returning full time from January 2026.

Related Parties

The SDBF works closely with a range of partners and parties:

The Archbishops’ Council to which the Diocese 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 Archbishops' Council and National Church Institutions from which the SDBF receives grants and which acts on behalf of clergy with HM Revenue and Customs. The SDBF also pays for clergy stipends through the Archbishops' Council.

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

Sheffield Cathedral, to which the SDBF provides a number of support services, such as safeguarding and HR advice. The SDBF also passes on grants from the Archbishops’ Council and National Church Institutions where the SDBF and the Cathedral are working in collaboration on certain projects.

Volunteers

The SDBF is dependent on the huge number of volunteers involved in church activities both locally and at Diocesan level. The SDBF greatly values the considerable time given by all volunteers and particularly, committee members across the Diocese in pursuit of the mission of the SDBF. No attempt has been made to quantify this resource, so generously given.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

FUTURE PLANS

As is noted in the Foreward by The Rt Revd Dr Pete Wilcox the Diocese has shown positive signs of missional health and growth in year. We have made a number of key appointments to clergy vacancies and we continue to invest reserves to maintain our clergy numbers in line with our strategic planning.

We have benefited from financial support to increase our baseline number of curates. This additional investment from the strategic mission and ministry fund is one element that has supported the development of our Curate in Charge programme which supports a strong and healthy leadership development pipeline across the Diocese.

National Church continue to be a key mission partner and following our refreshed strategy work in 2024 we have secured £17.5m from the Strategic Mission & Ministry Investment Board (SMMIB) to invest in making further progress towards our vision, 2025-28.

This funding will provide the opportunity of second phase developments of key areas of work such as Centenary Project, Resourcing Churches, and Mission Area Support. As well as the expansion of support for lay ministers and revitalisation teams. For the first time this funding includes £2.2m for strategic buildings investment to help support building works on churches in key locations, e.g. centres of population where we can see potential to grow the church.

An in-principle award of £18.3m has been made by SMMIB for 2029-31, following successful annual reviews of the delivery 2025-28.

Other funding previously secured will dovetail into this new funding stream.

This gift of mission funding does not mean that we are no longer reliant on Common Fund. On the contrary it buys us some time to grow the church and Common Fund to ensure that we can be self-financing going forward.

Communications to deaneries regarding the refreshed strategy will continue in 2026.

FINANCIAL REVIEW

2025 was a further year of fragile recovery against an economic backdrop where utility costs and cost of living metrics have suffered the steepest inflationary rises in many parishioners' lifetimes. The financial constraints felt in the households across our Diocese have impaired the ability of many to contribute to the work of the Diocese.

The sustained generosity of a wide range of donors has been matched by the much-needed support from our Archbishops’ Council who have prioritised their commitments to resource our Diocese in a range of project funds. The Revitalisation, Transformation and Capacity Funding projects, together with the recent SMMIB strategic award and their funding streams commit us in partnership through to 2030.

The underlying operational costs of core Diocese activity and static common fund contribution levels continue to leave us with a substantial operational deficit. This ongoing deficit and its implications were factored into the sustainability plans which were at the core of our bid for longer term National Church Triennium funding that was approved in the year. This bid included an amount of £1m to help support the Diocese with the operating deficit in 2025, without this transition support award the reported deficit would have been £1m higher.

A deficit operational budget for 2026 has been set at £1.24m for the General Funds which will be funded by reserves. Subsequent to the budget approval by Diocesan Syond in November 2025, a further £1m of transition support was been approved for 2026 to support the operational deficit, whilst we look at ways to minimise the ongoing operational deficits with the Archbishops’ Council beyond 2026.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

The core costs of the Diocese are for Parish Ministry and the personnel supported by stipends and salaries, with stipends and staff salaries rising by 3% during 2025 to match inflation/cost-of-living increases, compared with an increase of 5% given in 2024.

Our Diocese remains a relatively poor Diocese with limited reserves, but our supporters are generous, and we remain grateful for the participation in the financial needs of the Diocese expressed in Common Fund Contributions. The 2025 Common Fund contributions totalled £3.4m (2024 - £3.4m). The 2026 Common Fund target has been set at £3.6m and we continue to proactively work with PCCs and across the SDBF on financial planning and sustainability.

Net operating result before investment gains yielded a £1.2m deficit (2024 - £1.0m deficit) which was better than forecast and significantly below the approved budget deficit of £2.0m. The deficit was contained below projections due to the grant of £1m transition support from the Archbishops’ Council that had not been confirmed at the time the 2025 budget was approved.

Diocese reserves have been utilised to cover the shortfall in operating costs created in 2025 and 2024 but we are keenly aware of the limitations on our free reserves. The National Church Triennium funding awards for 2026-28 are a critical element of future planning, with continued support beyond this current triennium essential for the Diocese as it seeks to remove future operational deficits.

A significant element of our funding is received from the Archbishops’ Council £6.3m (2024 - £4.2m) across a number of projects. This includes Lowest Income Communities funding of £1.7m (2024 - £1.6m) which we have allocated to support mission and ministry in parishes where they have ranked in the lowest 10% of our Diocese in terms of Social Deprivation indices.

The Transformation, Capacity and Resourcing Churches projects, together with the recent SMMIB strategic award are included in these Archbishops’ Council funds. These projects support the ongoing strategic development of the Diocese and enable us to reach new and diverse communities. We also received a grant of £75,000 from the Sheffield Church Burgesses Trust which continues to support work across the Sheffield Deaneries. Income from investments and rental income was largely in line with expectation.

Costs for Resourcing Mission and Ministry have grown in the year to £12.8m (2024 - £11.6m) as we recruit to some of the new funded project roles and see cost of living increases on both stipends and wages during the year. Housing and removal costs continue to remain particularly susceptible to inflationary pressures and there is continued pressures on these associated budgets. The number of SDBF funded clergy roles at the end of 2025 was broadly in line with the budgeted expectations, but the slower than anticipated recruitment of new and replacement roles has meant that clergy stipend costs for the full year were below budgeted levels.

The total value of Tangible Fixed Assets reduced to £37.5m from £38.5m primarily due to the sale of three properties within the portfolio which were either surplus to requirements or had been replaced in the previous year with a more suitable property. These changes are part of the strategic plans to meet ongoing clergy housing requirements. No depreciation was charged in year, however following a review of the carrying value of the assets, there was an impairment charge of £0.1m taken against the carrying value of the Church House offices in Rotherham as the commercial property market values for office space has not recovered to pre-pandemic levels. In line with policy all depreciating assets having been written down in prior years.

The value of Fixed Asset Investments increased during the year to £19.2m from £18.8m due to investing property sale proceeds and the transfer of some cash deposits into CCLA investments. The net increase in value includes an unrealised investment revaluation loss of £0.4m at the year end due to the revaluation of CCLA investment funds which were approximately 2% down on the position at the previous year end. The movement on valuation can go up and down, driven by general economic uncertainties from potential trading tariffs and the continuity conflicts in Ukraine and the Middle East.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Pension schemes are administered by the Church of England Pensions Board.

The Church of England Funded Pension Scheme for clergy had its most recent scheme valuation in 2021 and the previous deficit had been eliminated. The pension contribution rate from the SDBF in 2025 was 22% which had been reduced from the 28% in 2024 in line with national contribution rates. The pension contribution rate will further reduce to 21% in 2026.

The Church Workers Pension Fund, covering all current salaried employees on a defined contribution basis has a normal contribution rate of 10.5% including death in service benefits. During the prior year, there was a usable surplus of £192,000 arising from an historic Church Workers defined benefit scheme valuation in 2022. The surplus was fully utilised in early 2025.

Reserves Policy

Our Reserves Policy considers the use of all our Funds but primarily focuses on our Unrestricted Funds, which fall into three categories:

Free Reserves, which we define as the resources held in our Unrestricted (General) Fund as readily realisable assets, at 31 December 2025, totalled £3.6m (31 December 2024: £3.8m). There has been a net decrease in these reserves of £0.2m during the year. The Operational Deficit of the Unrestricted Fund of £0.7m was partly offset by the transfer in of the net profits made on the sale of glebe assets from the Stipend Capital Fund and a transfer from the Parsonages Fund of sale proceeds from a surplus parsonage disposed in an earlier period. There is a strategy in place to release monies from restricted funds where possible to support work towards strategic priorities.

Our priority is to maintain Free Reserves at a sufficient level to ensure financial resilience and sustainability, including mitigating against key risks identified in our risk register for at least the next financial year. A planned deficit for 2026 of £1.24m was approved by Diocesan Synod in November 2025.

We are also seeking to achieve a balance between holding reserves to maintain financial resilience and using our funds in support of the mission and strategic priorities as set out in the Diocesan Strategy, “Renewed Released Rejuvenated”.

We are blessed that we hold certain Restricted Funds which can also be deployed to support the implementation of the strategy. We continue to adopt a strategic plan agreed by Bishop’s Council to utilise funds as helpfully as possible within the regulatory framework.

Tangible fixed assets within our General Fund are held to support our charitable activities. Funds are not readily available as they can only be realised through the sale of the properties we hold. Our policy is to review whether we need to retain these assets at least once a year and when they become vacant. At 31 December 2025 the total value was £2.4m being the net book value of the relevant properties less the value of any related loans which would be repayable if the properties were sold. (31 December 2024: £1.7m).

Designated Funds: The Trustees may designate an element of Unrestricted Funds for an agreed purpose where this is considered to be appropriate linked to a particular objective. The need for the fund is reviewed at least once a year and funds returned to Free Reserves if no longer required. In our reserves policy, we are taking the approach to limit the use of designated funds.

Details of all designated, restricted and endowment funds can be found in the notes to the financial statements.

The SDBF confirms that it has no direct investments in fossil fuel companies, as has been the case for some time. Following a meeting of the Bishop’s Council, it has also committed to not reinvesting in them in the future.

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Grant Making Policy

The SDBF’s Memorandum of Association explicitly permits the SDBF to make grants in pursuance of its objects. The Grants Committee meets at least three times a year to consider applications made by parishes to support ongoing activities.

Grants made in 2025 covered contributions towards necessary maintenance works in Church buildings where alternative funding is not available locally, grants for this purpose are typically less than £5,000. Additionally, a number of grants were made to support various aspects of ministry including short term parish support staff contributions and event support. These grant awards were consistent with the aims and objectives of the SDBF.

Investment Policy

The SDBF is empowered by its Memorandum and Articles of Association to invest monies not immediately required for its purposes. In addition, the SDBF acts as Trustee for a number of Trust Funds, and these must be invested in accordance with the related trusts.

The Trustees’ investment policy is to hold all restricted and endowed investments in CBF Funds. CCLA Investment Management Ltd (CCLA) on behalf of National Church have been instructed to apply an ethical screen to the portfolio which precludes direct investment in companies which have more than:

The CCLA Investment Committee also sets minimum ESG risk restrictions around governance, ESG ratings and controversy processes.

Most of the SDBF’s other investments continue to be held in the CBF Church of England Funds managed by CCLA Investment Management Limited.

The Finance and Property Committee regularly reviews the performance of the funds and makes decisions on investments. In the coming year we will be working with independent advisors on a full review of investments held by SDBF.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees are responsible for the identification, mitigation and active management of risk. A corporate register of risks is maintained. A separate Programme-level risk register for externally funded activity is also maintained and reported through Programme reporting structures.

The corporate risk register is reviewed by the Trustees at each Bishop’s Council meeting and at the Finance & Property Committee (F&PC). The responsibility for delivery of the mitigation strategies identified is delegated to individual risk owners under the oversight of the Diocesan Secretary. The register is reviewed and updated 4 times a year by the Programme Team in consultation with risk owners.

Risks are categorised as Financial, Strategic & Reputational, Operational and Statutory & Legal. Risks are plotted in a matrix to easily highlight our most significant risk areas. A summary of our current most significant risks and associated mitigation strategies are detailed below:

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Financial

Churches don't / can't meet Common Fund pledges, resulting in loss of income to Diocese for investment in priority work:

Unbudgeted financial commitments or overspend that eat into reserves, eventually leading to reputational damage / emergency loan required from Church Commissioners:

National Church Strategy announcements and / or decisions of the national Church undermine confidence in the Church of England, leading to the alienation of our donor base and a reduction in local giving:

Reduced rental income due to impact of changes to tenant notice periods in favour of tenants due to Renters' Rights Bill, making it potentially more difficult to get properties back in time to make them ready for clergy resulting in holding houses vacant for longer:

Operational

Inability to recruit sufficient suitable clergy to Oversight Minister roles leading to a failure of the diocesan strategy

Inadequate staff resources, capacity and attendance create pressure on central services leading to delays, errors and increased sickness levels

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Strategic & Reputational

High-profile safeguarding failures in the wider national church lead to a general loss of confidence in Church of England safeguarding policy and procedure at all levels, undermining the work of the Diocesan Safeguarding Team and PCCs to create a safe church for all

Theological positions of some churches and the reputation of the C of E leads to a lack of safety for LGBTQIA+ people / Outcomes of the Living in Love and Faith exploration / consultation lead to some of our congregations leaving the C of E / Diocese resulting in financial loss and reputational damage

Pace and scale of change means that some parishes are blockers and not permission givers resulting in failure of strategic aims

Statutory & Legal

Non-compliance with legal frameworks and statutory regulations leading to legal claims and fines or payment of compensation

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

STRUCTURE GOVERNANCE AND MANAGEMENT

The Sheffield Diocesan Board of Finance (SDBF) is a company limited by guarantee (No. 196087) and a registered charity (No. 245861) governed by its Memorandum and Articles of Association.

The company’s principal activity is to promote, assist and advance the work of the Church of England within the Diocese of Sheffield. It was established in its present form in 1926.

The SDBF works in consultation with the wider Church of England and receives a range of funding from both The Church Commissioners and the Archbishops’ Council. The Bishop of Sheffield is a member of the House of Bishops who are responsible for setting key policy which impacts SDBF operations, a key example would be in the area of Safeguarding.

Governance and policy of the SDBF is the responsibility of the Directors, who are also members of the company and Trustees for the purposes of charity law. The Bishop of Sheffield, together with other ex-officio persons are Trustees together with six people elected from and by the members of Diocesan Synod every three years, reelections were held in 2024, with new Trustees joining from 1 January 2025. The Bishop of Sheffield, the Rt Revd Dr Pete Wilcox, is recognised in our Register of Persons of Significant Control.

The Diocesan Synod, the statutory governing body of the Diocese, is an elected body drawn from across the Diocese with responsibility for setting the vision and strategy of the Diocese, guided by the Bishop’s Staff Team. The Synod membership is elected every three years. The Synod elects six of the Trustees of the Diocesan Board of Finance. The SDBF is a separate legal entity, with clear responsibilities under both company and charity law, as well as a governing Memorandum and Articles of Association. By virtue of the National Institutions Measure 1998 the SDBF is subject to the direction of the Synod in all its activities, unless such direction is not in accordance with the governing documents or statutory regulations.

Historical assets arising from unexpended accumulations of sale proceeds of redundant Church of England School properties are accounted for in the restricted Church Schools fund and are managed by the SDBF in consultation with the Diocesan Board of Education.

The role of Bishops Council is set out in paragraph 75 of the Standing Orders. It includes planning the business of Synod and advising the Synod on matters placed before it. It also has an advisory role on financial business, as set out in paragraph 109 of the Standing Orders. Under paragraph 111, the finance committee of the Board of Finance has to submit its accounts and draft budget to Bishops Council. Bishops Council then makes to the Synod sitting as the Board of Finance “such recommendations thereon as it thinks fit”. Synod (sitting as the SDBF) approves the budget as proposed by the finance committee and authorises the SDBF to expend a sum not exceeding the amount outlined within the budget as presented.

The Finance and Property Committee appointed on behalf of Bishop’s Council is responsible for oversight and scrutiny on decision making around financial resources and property assets. This committee meets most months. A budget is prepared annually and presented to first to Bishop’s Council and then Diocesan Synod for approval at its November meeting.

The Committee undertakes the SDBF’s responsibilities under the Parsonages Measure; 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 Pastoral Measure 1983 (with regard to redundant churches).

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Trustees

Trustees are members of the Bishop’s Council and are either elected via Diocesan Synod or via interview. They are given induction as they start their role and at other times as appropriate. Some staff 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. Trustees are required to make a declaration that they are not barred from being a Company Director and maintain their entry in the record of declarations of interest.

The following trustees were appointed during the year

Mrs A R De Castro Appointed 1 January 2025 The Ven D I Gerrard Appointed 18 November 2025 The Revd E J S Morrison Appointed 1 January 2025 The Revd B M Tanner Appointed 1 January 2025 The Rt Revd L B Vasey-Saunders Appointed 16 September 2025

Remuneration of key management personnel

Emoluments of higher-paid employees are determined by a use of a positioning scale for the grading of posts, with a full job evaluation process carried out during 2025. Salary and stipend uplift decisions are made annually paid in April (Clergy) and January (SDBF officers and staff).

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

ADMINISTRATIVE INFORMATION

Registered Company Number 196087 (England and Wales) Registered Charity Number 245861 (England and Wales)

Secretary

Mrs K Bell

Registered office Sheffield Diocesan Church House 95-99 Effingham Street Rotherham S65 1BL

Auditor

Saffery LLP 10 Wellington Place Leeds LS1 4AP

Bankers

Virgin Money 1 Frederick Street Rotherham S60 1QP

Solicitors

Anthony Collins Solicitors LLP

134 Edmund Street Birmingham B3 2ES

Glebe Agents

Savills (UK) Limited

River House, 17 Museum Street York YO1 7DJ

Investment advisors

CCLA Investment Management Ltd One Angel Lane London EC4R 3AB

Trustees

The following trustees served from the start of the financial year until the date of this report:

The Rt Revd Dr P J Wilcox Mr I G Walker Mr N Birchenall Mrs J A Butcher The Ven M L Chamberlain (Resigned 11 June 2025) The Revd C Dawson Mrs A R De Castro (Appointed 1 January 2025) The Ven D I Gerrard (Appointed 18 November 2025) The Ven J Iqbal The Rt Revd S R Jelley (Resigned 14 February 2025) Mr M MacDonald The Revd E J S Morrison (Appointed 1 January 2025) Ms I J Newton Lay Canon P M Rainford The Revd Canon M Rhodes The Revd E H Steele The Revd B M Tanner (Appointed 1 January 2025) The Very Revd A Thompson The Rt Revd L B Vasey-Saunders (Appointed 16 September 2025)

SHEFFIELD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of SDBF for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the SDBF 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 SDBF 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 SDBF’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.

DISCLOSURE OF INFORMATION TO AUDITOR

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.

The trustees' report, including the strategic report, was approved by the Trustees and signed on its behalf by

Ian Walker Katie Bell Chair Secretary

9 June 2026

SHEFFIELD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF SHEFFIELD DIOCESAN BOARD OF FINANCE

Opinion

We have audited the financial statements of Sheffield Diocesan Board of Finance Limited for the year ended 31 December 2025 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:

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 other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 themselves. 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 our audit:

SHEFFIELD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF SHEFFIELD DIOCESAN BOARD OF FINANCE

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 and strategic 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:

Responsibilities of trustees

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

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

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act. 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. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates. Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales and the Church of England Measures.

SHEFFIELD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF SHEFFIELD DIOCESAN BOARD OF FINANCE

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Sally Appleton (Senior Statutory Auditor)

For and on behalf of Saffery LLP, Statutory Auditor 10 Wellington Place Leeds LS1 4AP

17 June 2026

SHEFFIELD DIOCESAN BOARD OF FINANCE

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Designated
Restricted Endowment
funds
funds
funds
funds
Notes
£000's
£000's
£000's
£000's
Income and endowments from:
Donations
3
- Parish contributions
3,202
-
697
-
- Archbishops' council
2,747
82
3,478
-
- Other donations
91
93
27
-
Charitable activities
4
334
-
32
-
Other activities
5
337
2
50
-
Investments
6
280
-
301
47
Other income
7
-
-
107
202
Total income
6,991
177
4,692
249
Expenditure on:
Raising funds
8
57
-
-
-
Charitable activities
9
7,552
177
5,056
-
Total expenditure
7,609
177
5,056
-
Net (losses) / gains on
investments
10
(58)
-
(279)
10
Net (expenditure) / income
(676)
-
(643)
259
Transfers between funds
11
1,141
-
151
(1,292)
Other recognised gains
and losses:
Impairment of fixed
assets
15
-
-
-
(100)
Net movement in funds
465
-
(492)
(1,133)
Reconciliation of funds:
Fund balances at 1 January 2025
5,499
-
8,194
46,103
Fund balances at 31 December
2025
5,964
-
7,702
44,970		 Total
2025
£000's
3,899
6,307
211
366
389
628
309
12,109
57
12,785
12,842
(327)
(1,060)
-
(100)
(1,160)
59,796
58,636		 Total
2024
£000's
3,935
4,170
315
391
285
702
275
10,073
78
11,575
11,653
539
(1,041)
-
-
(1,041)
60,837
59,796

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

A full comparative Statement of Financial Activities is provided in note 27.

SHEFFIELD DIOCESAN BOARD OF FINANCE

BALANCE SHEET

AS AT 31 DECEMBER 2025

Notes
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Funds
Endowment funds
21
Restricted funds
21
Unrestricted funds
21		 2025
£000's
670
2,779
3,449
(1,015)		 £000's
37,542
19,167
56,709
2,434
59,143
(507)
58,636
44,970
7,702
5,964
58,636		 2024
£000's
985
3,381
4,366
(1,319)		 £000's
38,454
18,816
57,270
3,047
60,317
(521)
59,796
46,103
8,194
5,499
59,796

The financial statements were approved by the Trustees and authorised for issue on 9 June 2026 and signed on behalf of the Board by

Mr I G Walker

Chair

SHEFFIELD DIOCESAN BOARD OF FINANCE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

2025 2024
£000's £000's £000's £000's
Cash flows from operating activities
Cash absorbed by operations (1,718) (2,486)
Investing activities
Purchase of tangible fixed assets (100) (1,427)
Proceeds from disposal of
tangible fixed assets 1,221 535
Repayment of loans from
parishes, cathedrals and schools 59 37
Purchase of investments (1,355) -
Proceeds from disposal of investments 677 2,673
Investment income received 628 702
Net cash generated from investing activities 1,130 2,520
Financing activities
Repayment of borrowings (14) (94)
Net cash used in financing activities (14) (94)
Net decrease in cash and cash equivalents (602) (60)
Cash and cash equivalents at beginning of year 3,381 3,441
Cash and cash equivalents at end of year 2,779 3,381
Cash absorbed by operations 2025 2024
£000's £000's
Deficit for the year (1,060) (1,041)
Adjustments for:
Investment income recognised in statement of financial activities (628) (702)
Gain on disposal of tangible fixed assets (309) (275)
Gain on disposal of investments (94) (35)
Fair value losses/(gains) on investments 421 (504)
Movements in working capital:
Decrease/(increase) in debtors 256 (288)
Increase/(decrease) in creditors 22 (577)
(Decrease)/increase in deferred income (326) 936
Cash absorbed by operations (1,718) (2,486)

SHEFFIELD DIOCESAN BOARD OF FINANCE

STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Analysis of changes in net funds
At 1 January Cash flows At 31 December
2025 2025
£000's £000's £000's
Cash at bank and in hand 3,381 (602) 2,779
Loans falling due after more than one year (521) 14 (507)
2,860 (588) 2,272

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

Charity information

Sheffield Diocesan Board of Finance (the 'SDBF') is a charitable company limited by guarantee.

The registered company number is 196087. The registered charity number is 245861.

The registered office is Sheffield Diocesan Church House, 95-99 Effingham Street, Rotherham, S65 1BL.

The SDBF is a public benefit entity.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS 102) (second edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the SDBF. Monetary amounts in these financial statements are rounded to the nearest £000's unless stated otherwise.

The financial statements have been prepared under the historical cost convention, with the exception of fixed asset investments, which are included at their fair value at the balance sheet date.

1.2 Going concern

Having reviewed the future projected income and expenditure, the trustees have a reasonable expectation that the SDBF has adequate resources to continue its activities for the foreseeable future. They consider that there were no material uncertainties over the charity's financial viability at the date of approving the accounts. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the SDBF's charitable objectives. Designated funds are set aside out of unrestricted funds for a purpose specified by the trustees.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used, are specified in the terms of a trust, or else are created and governed by legal measure.

Endowment funds are subject to specific conditions that require that the capital must be maintained, or are created and governed by legal measure.

Details of the funds of the SDBF are contained in note 22.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.4 Income

Income is recognised when the SDBF is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Parish contributions are collected from parishes of the Diocese through the Common Fund system. Contributions are recognised when received by the SDBF.

Archbishops' Council and Other Donations are recognised when any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received.

Housing and investment income are recognised as income when receivable.

Income from the sale of parsonages or SDBF properties is recognised when legal title to the property has transferred. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Costs of raising funds are the costs of managing the Glebe land, plus any costs associated with generating income from vacant parsonages and houses.

Charitable expenditure is analysed between contributions to the Archbishops' Council, Resourcing Ministry and Mission and Other projects, conferences and events. The costs are further analysed by activities undertaken directly by the SDBF using its own unrestricted or restricted reserves, and those activities undertaken using grant funding and income received from the Archbishops Council or from other sources.

Support costs consist of the central management, administration and governance costs which relate specifically to resourcing mission and ministry.

Grants payable a re charged in the year in which 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, with such grants being recognised when the conditions attached are fulfilled.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

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 SDBF 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 perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount.

Parsonages and Stipend Fund Properties

The SDBF 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 SDBF 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 historic costs.

Properties acquired using value linked loans

Properties which have been acquired with the assistance of value linked loans from the Church Commissioners are held at fair value with the value linked loan revalued accordingly.

Other tangible fixed assets

All capital expenditure over £5,000 is capitalised and depreciated.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold Property Not applicable
Office Equipment 15-30% straight line
Parsonages Not applicable
Stipend Fund Property Not applicable

1.7 Fixed asset investments

Fixed asset investments consists of unlisted investments and Glebe land held for the purpose of income generation. These are measured at fair value at the balance sheet date, the Glebe land being valued by an independent RICS registered valuer. Any gain or loss is recognised in the statement of financial activities.

1.8 Impairment of fixed assets

At each reporting end date, the SDBF reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, with any loss being recognised in the statement of financial activities.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash held on deposit with banks and other investment organisations with maturities of three months or less.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

1.11 Retirement benefits

Sheffield Diocesan Board of Finance participates in two defined benefit pension schemes administered by the Church of England Pensions Board.

The schemes are 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 means that contributions are accounted for as if the Scheme were a defined contribution scheme.

Further details are found in note 14.

2 Critical accounting estimates and judgements

In the application of the accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key judgement which has the most significant effect on amounts recognised in the financial statements is the depreciation of Land and Buildings. Land and Buildings are not depreciated because of the high residual value based on current prices, and any depreciation charge and the accumulated depreciation are regarded as not material. These assets are considered to have a long unexpired life due to a policy and practice of regular structural maintenance and a policy and practice of disposing of similar properties well before the end of their useful life.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

3 Income from donations

For the year ended 31 December 2025:

For the year ended 31 December 2025:
Unrestricted Designated Restricted Total
funds funds funds 2025
£000's £000's £000's £000's
Parish contributions
Current year contributions 2,909 - 451 3,360
Receipts for prior years 86 - 7 93
2,995 - 458 3,453
Locally supported clergy 207 - - 207
Locally supported lay workers - - 239 239
3,202 - 697 3,899
Archbishops' Council
LInC Funding 1,691 - - 1,691
Transition Funding 1,031 - - 1,031
Mutuality in Finance 25 - - 25
Resourcing Churches - - 196 196
Transformation and Capacity - - 1,226 1,226
Racial Justice - - 70 70
Ordinands Grants - - 35 35
Spiritual Growth - - 12 12
Revitalisation - - 689 689
SMMIB - - 426 426
Giving Advisor - - 55 55
Net Zero - 82 - 82
Minor Repairs & Improvements - - 127 127
Additional Curates - - 507 507
Posts of First Responsibility - - 127 127
Ministry Experience Scheme and Youth - - 8 8
2,747 82 3,478 6,307
Other donations
Benefact Trust - 93 - 93
Sheffield Church Burgesses Trust 75 - - 75
Other 16 - 27 43
91 93 27 211

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

3 Income from donations (Continued)
For the year ended 31 December 2024:
Unrestricted Designated Restricted Total
funds funds funds 2024
Parish contributions £000's £000's £000's £000's
Current year contributions 3,305 - 50 3,355
Receipts for prior years 65 - - 65
3,370 - 50 3,420
Locally supported clergy 249 - - 249
Locally supported lay workers 70 - 196 266
3,689 - 246 3,935
Archbishops' Council
LInC Funding 1,635 - - 1,635
Transition Funding 89 - - 89
Mutuality in Finance 50 - - 50
Resourcing Churches - - 387 387
Centenary Project - - 31 31
Transformation and Capacity - - 1,219 1,219
Racial Justice - - 16 16
Resourcing Ministerial Education - - (285) (285)
Ordinands Grants - - 27 27
Spiritual Growth - - 8 8
Revitalisation - - 247 247
Giving Advisor 48 - - 48
Net Zero - 129 - 129
Minor Repairs & Improvements - - 30 30
Additional Curates - - 400 400
Posts of First Responsibility - - 109 109
Ministry Experience Scheme and Youth - - 30 30
1,822 129 2,219 4,170
Other donations
Benefact Trust - 125 - 125
Sheffield Church Burgesses Trust 75 - - 75
Other 47 12 56 115
122 137 56 315

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

4 Income from charitable activities

Unrestricted Designated Restricted Total
funds funds funds 2025
£000's £000's £000's £000's
Statutory Fees 270 - - 270
Chaplaincy and Other 64 - 32 96
334 - 32 366
Unrestricted Designated Restricted Total
funds funds funds 2024
£000's £000's £000's £000's
Statutory Fees 287 - - 287
Chaplaincy and Other 49 35 20 104
336 35 20 391

5 Income from other activities

Unrestricted Designated Restricted Total
funds funds funds 2025
£000's £000's £000's £000's
Housing income 279 - 49 328
Other income 58 2 1 61
337 2 50 389
Unrestricted Designated Restricted Total
funds funds funds 2024
£000's £000's £000's £000's
Housing income 230 - 20 250
Other income 16 1 18 35
246 1 38 285

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

6 Income from investments

Unrestricted Restricted Endowment Total
funds funds funds 2025
£000's £000's £000's £000's
Dividends receivable 104 257 28 389
Interest receivable 32 44 19 95
Rents receivable 144 - - 144
280 301 47 628
Unrestricted Restricted Endowment Total
funds funds funds 2024
£000's £000's £000's £000's
Dividends receivable 162 132 - 294
Interest receivable 89 138 40 267
Rents receivable 141 - - 141
392 270 40 702

7 Other income

Unrestricted Restricted Endowment Total
funds funds funds 2025
£000's £000's £000's £000's
Gain on sale of parsonages and houses - 107 202 309
Unrestricted Restricted Endowment Total
funds funds funds 2024
£000's £000's £000's £000's
Gain on sale of parsonages and houses 108 - 167 275

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

8 Expenditure on raising funds

Unrestricted Restricted Total
funds funds 2025
£000's £000's £000's
Glebe agent's fees 33 - 33
Parsonage rental costs 24 - 24
57 - 57
Unrestricted Restricted Total
funds funds 2024
£000's £000's £000's
Glebe agent's fees - 38 38
Parsonage rental costs - 40 40
- 78 78

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

9 Expenditure on charitable activities

For the year ended 31 December 2025:

Unrestricted Designated
Restricted
funds
funds
funds
£000's
£000's
£000's
Contributions to Archbishops' Council
Training for ministry
187
-
-
National church responsibilities
220
-
-
407
-
-
Resourcing Ministry and Mission
Costs of parish ministry
Clergy stipends
2,308
60
1,076
National insurance
247
7
110
Pension contributions
477
13
214
Housing costs
1,464
1
422
Removal and resettlement grants
141
-
15
Clergy training and support
108
-
70
Clergy recruitment and wellbeing
53
-
12
4,798
81
1,919
Support for parish ministry
Wages and salaries
1,280
42
1,843
National insurance
145
3
191
Pension contributions
154
3
173
Grants payable
233
37
386
Other costs
492
1
508
7,102
167
5,020
Projects, Conferences and Events
Expenditure on projects,
conferences and events
43
10
36
Total expenditure
on charitable activities
7,552
177
5,056		 Total
2025
£000's
187
220
407
3,444
364
704
1,887
156
178
65
6,798
3,165
339
330
656
1,001
12,289
89
12,785

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

9 Expenditure on charitable activities

(Continued)

Analysis of expenditure including allocation of support costs

Activities
Grant
Undertaken
Funding of
Support
Directly
Activities
Costs
Raising funds
57
-
-
Charitable activities
Contributions to Archbishops' Council
407
-
-
Resourcing Ministry and Mission
7,110
4,462
717
Projects, Conferences and Events
48
41
-
7,622
4,503
717
Unrestricted
Total
funds
2025
Analysis of support costs
£000's
£000's
Finance, Human Resources, Diocesan Secretary
and Central Administration costs
602
602
Governance
External audit
30
30
Registrar and Chancellor
77
77
Diocesan Synodical Costs
8
8
717
717		 Total
2025
57
407
12,289
89
12,842

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

9 Expenditure on charitable activities
(Continued)
For the year ended 31 December 2024:
Unrestricted Designated
Restricted
Total
funds
funds
funds
2024
£000's
£000's
£000's
£000's
Contributions to Archbishops' Council
Training for ministry
188
-
-
188
National church responsibilities
209
-
-
209
397
-
-
397
Resourcing Ministry and Mission
Costs of parish ministry
Clergy stipends
2,522
119
718
3,359
National insurance
211
7
62
280
Pension contributions
566
26
165
757
Housing costs
1,627
86
120
1,833
Removal and resettlement grants
186
-
19
205
Clergy training and support
144
-
17
161
Clergy recruitment and wellbeing
24
-
7
31
5,280
238
1,108
6,626
Support for parish ministry
Wages and salaries
1,253
32
1,602
2,887
National insurance
124
2
146
272
Pension contributions
(47)
3
169
125
Grants payable
269
5
169
443
Other costs
445
9
271
725
7,324
289
3,465
11,078
Projects, Conferences and Events
Expenditure on projects,
conferences and events
32
20
48
100
Total expenditure
on charitable activities
7,753
309
3,513
11,575		 Expenditure on charitable activities
(Continued)
For the year ended 31 December 2024:
Unrestricted Designated
Restricted
Total
funds
funds
funds
2024
£000's
£000's
£000's
£000's
Contributions to Archbishops' Council
Training for ministry
188
-
-
188
National church responsibilities
209
-
-
209
397
-
-
397
Resourcing Ministry and Mission
Costs of parish ministry
Clergy stipends
2,522
119
718
3,359
National insurance
211
7
62
280
Pension contributions
566
26
165
757
Housing costs
1,627
86
120
1,833
Removal and resettlement grants
186
-
19
205
Clergy training and support
144
-
17
161
Clergy recruitment and wellbeing
24
-
7
31
5,280
238
1,108
6,626
Support for parish ministry
Wages and salaries
1,253
32
1,602
2,887
National insurance
124
2
146
272
Pension contributions
(47)
3
169
125
Grants payable
269
5
169
443
Other costs
445
9
271
725
7,324
289
3,465
11,078
Projects, Conferences and Events
Expenditure on projects,
conferences and events
32
20
48
100
Total expenditure
on charitable activities
7,753
309
3,513
11,575
397
3,359
280
757
1,833
205
161
31
6,626
2,887
272
125
443
725
11,078
100
11,575

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

9 Expenditure on charitable activities

(Continued)

Analysis of expenditure including allocation of support costs

Activities
Grant
Undertaken
Funding of
Support
Directly
Activities
Costs
Raising funds
78
-
-
Charitable activities
Contributions to Archbishops' Council
397
-
-
Resourcing Ministry and Mission
7,367
3,019
692
Projects, Conferences and Events
38
62
-
7,880
3,081
692
Unrestricted
Total
funds
2024
Analysis of support costs
£000's
£000's
Finance, Human Resources, Diocesan Secretary
and Central Administration costs
588
588
Governance
External audit
38
38
Registrar and Chancellor
59
59
Diocesan Synodical Costs
7
7
692
692		 Total
2024
78
397
11,078
100
11,653

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

10 Gains and losses on investments

Unrestricted Restricted Endowment Total
funds funds funds 2025
Gains/(losses) arising on: £000's £000's £000's £000's
Revaluation of investments (58) (279) (84) (421)
Sale of investments - - 94 94
(58) (279) 10 (327)
Unrestricted Restricted Endowment Total
funds funds funds 2024
Gains/(losses) arising on: £000's £000's £000's £000's
Revaluation of investments 83 202 219 504
Sale of investments 15 - 20 35
98 202 239 539

11 Analysis of transfers between funds

Unrestricted Restricted Endowment
funds funds funds
£000's £000's £000's
From unrestricted funds to restricted funds
Contribution to SMMIB project from general fund (103) 103 -
RME Block Grant repayment (95) 95 -
From endowment funds to general funds
Profit on sale of glebe applied in housing improvements 94 - (94)
Profit on sale of parsonages applied in housing improvements 202 - (202)
Transfer of parsonages on completion of pastoral schemes 681 - (681)
Parsonage sales applied in housing improvements 315 - (315)
From Church in Action restricted fund
Church in Action contribution towards
the costs of other projects/funds 47 (47) -
1,141 151 (1,292)

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

12 Grants payable
Total
Total
2025
2024
£000's
£000's
Contributions to Archbishops' Council
Grants to institutions, national church responsibilities
407
397
Resourcing Ministry and Mission
Grants to individuals
Clergy first appointment grants
36
68
Clergy resettlement grants
63
53
Clergy ongoing ministerial development grants
19
17
Other grants to clergy
20
3
Ordinands maintenance grants
150
145
Ministry experience scheme grants
8
1
296
287
Grants to institutions (PCCs)
PCCs for faculty fees
19
20
Net Zero Quick Wins grants
37
5
Church in Action
87
68
Revitalisation Small Sparks grants
16
23
Revitalisation Mission Enabler grants
35
10
SMMIB Centenary Project grants
39
-
Minor Repairs and Improvements grants
127
30
360
156
Total grants payable
1,063
840		 Grants payable
Total
Total
2025
2024
£000's
£000's
Contributions to Archbishops' Council
Grants to institutions, national church responsibilities
407
397
Resourcing Ministry and Mission
Grants to individuals
Clergy first appointment grants
36
68
Clergy resettlement grants
63
53
Clergy ongoing ministerial development grants
19
17
Other grants to clergy
20
3
Ordinands maintenance grants
150
145
Ministry experience scheme grants
8
1
296
287
Grants to institutions (PCCs)
PCCs for faculty fees
19
20
Net Zero Quick Wins grants
37
5
Church in Action
87
68
Revitalisation Small Sparks grants
16
23
Revitalisation Mission Enabler grants
35
10
SMMIB Centenary Project grants
39
-
Minor Repairs and Improvements grants
127
30
360
156
Total grants payable
1,063
840
68
53
17
3
145
1
287
20
5
68
23
10
-
30
156
840

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

13 Staff costs

Employment costs

Employment costs
2025 2024
Employee costs during the year were as follows: £000's £000's
Wages and salaries 3,165 2,887
National insurance 339 272
Pension contributions 330 125
3,834 3,284

In 2024 the latest actuarial valuation on the Church Workers Pension Fund - Pension Builder Classic gave rise to a surplus of £192,000 which reduced the pension contribution for that year. There was no adjustment during 2025.

The number of employees whose annual remuneration 2025 2024
was more than £60,000 is as follows: Number Number
£60,001 - £70,000 3 1
£70,001 - £80,000 2 2
£80,001 - £90,000 - 1

Pension contributions of £37,973 (2024 : £30,268) were made in respect of these employees.

Average employees

Average employees
2025 2024
The average number of employees during the year was: Number Number
Administration and financial management 18 17
Property 3 3
Discipleship & Ministry, Stewardship 14 15
Safeguarding and inclusion 6 6
Projects staff funded from reserves 6 6
Projects staff externally funded 51 48
Total 98 95

Payments to 3 people (2024: 0) on termination of employment totalling £28,000 (2024: £0) have been made during the year.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

13 Staff costs

(Continued)

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 the year, key management personnel were identified as:

The salaries, national insurance and pension contributions paid in respect of key management personnel was £488,467 (2024 : £423,904).

Clergy costs

The SDBF is responsible for funding, via the Church Commissioners, the stipends of licensed stipendiary clergy in the Diocese, other than Bishops and cathedral staff. The SDBF is also responsible for the provision of housing for stipendiary clergy in the Diocese including the Suffragan bishops, but excluding the Diocesan Bishop and cathedral staff.

The SDBF paid the costs of an average of 111 (2024 : 114) stipendiary clergy as office-holders holding parochial or Diocesan appointments during the year, and the costs were as follows:

2025 2024
£000's £000's
Stipends 3,444 3,359
National insurance 364 280
Pension contributions 704 757
4,512 4,396

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

14 Pension Contributions

Sheffield Diocesan Board of Finance participates in two defined benefit pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the SDBF and the other Responsible Bodies. One of these is the Church of England Funded Pensions Scheme (CEFPS) for stipendiary clergy. The other is the Church Workers Pension Fund (CWPF) for lay staff.

Church of England Funded Pension Scheme (CEFPS)

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends. The scheme is considered to be a multiemployer scheme as described in Section 28 of FRS 102. 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, as set out in note 13, are contributions payable towards benefits and expenses accrued in that year, plus any figures arising from contributions in respect of any scheme deficit.

A valuation of the scheme is carried out once every three years. The 2021 valuation showed the scheme to be fully funded. The most recent scheme valuation completed was carried out at as 31 December 2024, and also showed the scheme to be fully funded; as such in 2025, the deficit contributions paid were £0 (2024 : £0).

The December 2024 valuation revealed a surplus of £560m, based on assets of £2,570m and a funding target of £2,010m, assessed using the following assumptions:

The 2024 valuation reflects the benefit improvements that the General Synod agreed in principle in July 2025 (and confirmed in February 2026).

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there were no deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2024 and 31 December 2025 is nil.

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

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

14 Pension Contributions

(Continued)

Church Workers Pension Fund (CWPF)

CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

CWPF has two sections:

Pension builder scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

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 on 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 means that contributions are accounted for as if the Scheme were a defined contribution scheme.

The pensions costs charged to the SoFA in the year, as set out in note 13, are the contributions payable.

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

For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2026, the Board chose to grant a discretionary bonus of 10% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 1997 service so that the pension increase was also 10% (where usually it would be calculated based on inflation up to an annual cap of 5% for pensions in payment in respect of service prior to April 2006 and 2.5% for pensions in payment in respect of service post April 2006 ). This followed improvements in the funding position over 2025. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The next valuation is being carried out as at 31 December 2025.

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

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

15
Tangible fixed assets
Freehold
Property
Office
Equipment
Parsonages
Stipend Fund
Property
£000's
£000's
£000's
£000's
Cost
At 1 January 2025
2,190
46
29,217
7,047
Additions
-
-
99
1
Disposals
-
-
(912)
-
Transfers
682
-
(148)
(534)
At 31 December 2025
2,872
46
28,256
6,514
Depreciation and impairment
At 1 January 2025
-
46
-
-
Impairment losses
-
-
-
100
At 31 December 2025
-
46
-
100
Carrying amount
At 31 December 2025
2,872
-
28,256
6,414
At 31 December 2024
2,190
-
29,217
7,047		 Total
£000's
38,500
100
(912)
-
37,688
46
100
146
37,542
38,454

An independent valuation of Diocesan Church House carried out at the year end indicated that the property's carrying amount was £100,000 more than the current market value. An impairment loss has therefore been recognised in the year.

16 Fixed asset investments

Unlisted
Investments
Glebe Land
£000's
£000's
Cost or valuation
At 1 January 2025
14,834
3,982
Additions
1,355
-
Valuation changes
(463)
42
Disposals
(267)
(316)
At 31 December 2025
15,459
3,708
Carrying amount
At 31 December 2025
15,459
3,708
At 31 December 2024
14,834
3,982		 Total
£000's
18,816
1,355
(421)
(583)
19,167
19,167
18,816

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

17 Debtors

Debtors
2025 2024
Amounts falling due within one year: £000's £000's
Debtors 142 298
Loans to parishes/cathedrals 47 27
Loans to schools 18 87
Other debtors and prepayments 232 332
439 744
2025 2024
Amounts falling due after more than one year: £000's £000's
Loans to parishes/cathedrals 188 216
Loans to schools 43 25
231 241
Total debtors 670 985
Creditors: amounts falling due within one year
2025 2024
Notes £000's £000's
Other taxation and social security 76 128
Deferred income 20 660 986
Creditors 87 84
Other creditors and accruals 192 121
1,015 1,319

18 Creditors: amounts falling due within one year

19 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
2025 2024
£000's £000's
Church Commissioners value-linked loans 482 483
Other Church Commissioners loans 25 38
507 521

Value-linked loans (VLLs) represent amounts advanced to the SDBF for the purchase of properties on an equity sharing basis and are repayable to the Church Commissioners on the disposal of the associated property.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

20 Deferred income
2025 2024
£000's £000's
Arising from Archbishops' Council grants 660 986
Movements in the year:
Deferred income at 1 January 2025 986 50
Amounts released during the year (986) (50)
Resources deferred in the year 660 986
Deferred income at 31 December 2025 660 986

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

21 Summary of fund movements

At 1 Jan
2025
Income
Expenditure
Transfers
Gains and
losses
At
£000's
£000's
£000's
£000's
£000's
Unrestricted funds
General Fund
5,499
6,991
7,609
1,141
(58)
Designated funds
Benefact
-
93
93
-
-
Net Zero
-
84
84
-
-
-
177
177
-
-
Restricted funds
Pastoral Fund
2,908
103
102
-
(88)
Church in Action
4,610
129
87
(410)
(173)
Schools
510
215
160
-
2
Transformation and Capacity
-
1,226
1,362
136
-
Resourcing Churches
-
202
232
30
-
Revitalisation
-
695
695
-
-
Centenary Project
-
231
380
149
-
Resourcing Ministerial
Education
(285)
35
35
95
-
SMMIB
-
432
535
103
-
Additional Curates
-
507
542
35
-
Posts of First Responsibility
-
127
139
12
-
Minor Repairs &
Improvements
-
127
127
-
-
Racial Justice
-
69
69
-
-
Diocesan Restricted Fund
-
303
303
-
-
Ephesians Fund
-
155
155
-
-
Other Funds
451
136
133
1
(20)
8,194
4,692
5,056
151
(279)
Endowment funds
Parsonages
32,071
249
-
(664)
(52)
Stipend Fund
12,290
-
-
(628)
10
Schools
1,742
-
-
-
(48)
46,103
249
-
(1,292)
(90)
Total Funds
59,796
12,109
12,842
-
(427)		 31 Dec
2025
£000's
5,964
-
-
-
2,821
4,069
567
-
-
-
-
(190)
-
-
-
-
-
-
-
435
7,702
31,604
11,672
1,694
44,970
58,636

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

21 Summary of fund movements (Continued)
At 1 Jan Income Expenditure Transfers Gains and
At 31 Dec
2024 losses 2024
£000's £000's £000's £000's £000's £000's
Unrestricted funds
General Fund 6,730 6,715 7,753 (291) 98 5,499
Designated funds
Benefact - 125 125 - - -
Net Zero - 129 134 5 - -
Chaplaincy - 35 35 - - -
Other - 13 15 2 - -
- 302 309 7 - -
Restricted funds
Pastoral Fund 2,827 71 77 - 87 2,908
Church in Action 4,887 134 72 (440) 101 4,610
Schools 505 99 158 59 5 510
Transformation and Capacity
Funding (319) 1,219 1,355 455 - -
Resourcing Churches (144) 399 581 326 - -
Revitalisation Project - 249 194 (55) - -
Centenary Project 57 218 435 160 - -
Resourcing Ministerial
Education - (258) 27 - - (285)
Other Funds 637 718 692 (221) 9 451
8,450 2,849 3,591 284 202 8,194
Endowment funds
Parsonages 32,600 40 - (709) 140 32,071
Stipend Fund 11,336 167 - 709 78 12,290
Schools 1,721 - - - 21 1,742
45,657 207 - - 239 46,103
Total Funds 60,837 10,073 11,653 - 539 59,796

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

22 Description of funds Unrestricted funds General Fund The SDBF's unrestricted undesignated fund available for any of the SDBF's purposes without restriction. Designated funds Benefact Grants received from Benefact Trust which the SDBF has designated to support ministry in a particular parish or area within the Diocese. Net Zero Funds designated towards achieving the Diocese of Sheffield's Net Zero Carbon Action Plan - our commitment to achieving net-zero carbon emissions by 2030 across our churches, schools, and clergy housing Restricted funds Ephesians Fund / These funds were established to ring fence Common Fund contributions to the Diocesan Restricted Diocese from parishes whose PCCs have explicitly resolved not to make use of the Fund Prayers of Love and Faith. These funds are used in the furtherance of ministry in those parishes. The total contributed via these funds does not meet the full ministry costs in the parishes concerned. The balance of ministry costs is met by unrestricted funds. Pastoral Fund The Diocesan Pastoral account was set up under the provision of the Pastoral Measure 1983. The restricted purposes for which the account may be used are: ● to defray costs incurred for the purposes of the Measure or any scheme or order made under the Measure except for salaries of regular Diocesan employees ● to make loans or grants for the provision, restoration, improvement or repair of churches and parsonage ● for other purposes of the Diocese or any benefice or parish in the Diocese ● to make grants or loans to any other Diocese ● to transfer funds to the Diocesan stipends fund income or capital accounts ● the costs of closed churches and the proceeds of the sale of closed churches less any related costs Church in Action The Church in Action fund originates from an appeal by that name launched in 1945 to provide money for new churches in the Diocese. Compensation paid to the Diocese from the Government's War Emergencies Fund in respect of churches demolished in the blitz was added to the fund. The fund financed the building of several new churches but what remains is used to fund grants and loans to parishes for the improvement of parish buildings. It can also be used for clergy training, stipends and pensions, providing Christian social workers and improvements to church schools. The fund is regulated by a scheme of the Charity Commission dated 10 May 1974. Schools This represents unexpended accumulations of sale proceeds of redundant Church of England School properties. Its use is restricted by law to capital and maintenance work for Church of England schools in the Diocese and education generally at Church of England schools in the Diocese. The SDBF is Trustee of these funds, which are managed on a day to day basis by and in consultation with the Board of Education.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

22 Description of funds

(Continued)

Restricted funds (continued)

Projects

The following projects are undertaken by the SDBF

These funds use grant funding from the Archbishops' Council and/or contributions from parishes, and are restricted according to the purposes of the grant application or agreement in place.

Other Funds/Trusts The SDBF administers other funds and trusts where the use of funds is restricted to a particular purpose. They are as follows:

Endowment funds

Stipend Fund The Diocesan Stipend Fund was set up under the Diocesan Stipends Fund Measure 1953 using assets held on behalf of the Diocese by the Church Commissioners. Under the Endowment and Glebe Measure 1973 the stipend fund also holds glebe assets transferred into the care and ownership of the Diocese. The fund may be used:

Parsonages This represents the value of the benefice houses (parsonages) in the Diocese.The fund also holds investments or cash balances being the proceeds from the sale of a benefice house where a replacement has yet to be purchased.

Schools This represents unexpended accumulations of sale proceeds of redundant Church of England School properties. Its use is restricted by law to capital and maintenance work for Church of England schools in the Diocese and education generally at Church of England schools in the Diocese. The SDBF is Trustee of these funds, which are managed on a day to day basis by and in consultation with the Board of Education.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

23 Summary of assets by fund

Unrestricted funds
General Fund
Restricted funds
Pastoral Fund
Church in Action
Schools
Resourcing Ministerial
Education
Other Funds
Endowment funds
Parsonages
Stipend Fund
Schools
Total Funds		 Fixed
Current Assets/
Long Term
At
Assets
Investments
(Liabilities)
Liabilities
£000's
£000's
£000's
£000's
2,872
1,906
1,668
(482)
-
2,915
(94)
-
-
4,074
(5)
-
-
513
55
-
-
-
(190)
-
-
405
29
-
-
7,907
(205)
-
28,256
3,438
(88)
-
6,414
4,409
847
-
-
1,507
212
(25)
34,670
9,354
971
(25)
37,542
19,167
2,434
(507)		 31 Dec
2025
£000's
5,964
2,821
4,069
568
(190)
434
7,702
31,606
11,670
1,694
44,970
58,636

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

23
Summary of assets by fund
Unrestricted funds
General Fund
Restricted funds
Pastoral Fund
Church in Action
Schools
Resourcing Ministerial
Education
Other Funds
Endowment funds
Parsonages
Stipend Fund
Schools
Total Funds		 (Continued)
Current
Fixed
Assets/
Long Term
At 31 Dec
Assets
Investments
(Liabilities)
Liabilities
2024
£000's
£000's
£000's
£000's
£000's
2,189
1,967
1,826
(483)
5,499
-
2,735
173
-
2,908
-
4,498
112
-
4,610
-
510
-
-
510
-
-
(285)
-
(285)
-
422
29
-
451
-
8,165
29
-
8,194
7,048
4,726
516
-
12,290
29,217
3,003
(149)
-
32,071
-
955
825
(38)
1,742
36,265
8,684
1,192
(38)
46,103
38,454
18,816
3,047
(521)
59,796

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

24 Trustees

No Trustee received any remuneration for services as Trustee (2024 - None).

Trustees received travelling and out of pocket expenses, totalling £8,391 (2024- £13,048) in respect of General Synod duties, duties as Archdeacon or Area Dean, and other duties as Trustees.

The following Trustees were in receipt of a stipend and/or housing/housing allowance paid for by the SDBF during the year:

Stipend Housing
The Rt Revd S R Jelley No Yes
The Rt Revd L B Vasey-Saunders No Yes
The Ven M Chamberlain Yes Yes
Revd C Dawson Yes Yes
The Ven D I Gerrard Yes Yes
The Ven J Iqbal Yes Yes
Revd E J S Morrison Yes Yes
Revd E H Steele Yes Yes
Revd M Rhodes Yes Yes
Revd B M Tanner Yes Yes

The stipends of the Diocesan Bishop and Suffragan Bishop are funded by the Church Commissioners and are in the range £43,260 - £53,470 (2024 range: £39,953 - £51,910). The annual rate of stipend, funded by the SDBF, paid to Archdeacons in 2025 was in the range £42,242 - £43,510 (2024 range: £40,230 - £42,242) and other clergy who were Trustees were paid in the range £30,509 - £31,425 (2024 range: £29,056 - £30,509). The Bishop's Council has estimated the value to the occupant, gross of income tax and national insurance, of church provided housing in 2025 at £13,200 (2024: £12,539). The value of housing provided to the Bishop is estimated at £17,860 (2024: £17,010).

25 Related party transactions

The SDBF enters into transactions, on a regular basis, with other autonomous organisations within the Church of England - e.g. Parishes, the Cathedral, the Central Board of Finance, the Archbishops' Council of the Church of England and the Church Commissioners. From time to time trustees and key managers of the SDBF may serve on committees of other bodies, or the General Synod. It is not considered appropriate to report the detail of such transactions since no person or group of people so serving have any significant influences over any material transactions.

There are no unusual transactions with such bodies reflected in these financial statements.

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

26 Funds held as custodian trustee

The SDBF 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 SDBF does not control them. The assets are held in separate funds identified by the names of the parishes or the trusts to which they relate. They are operated via a separate trust bank account and all statements are issued to the parishes as and when they are received. The financial assets held in this way may be summarised as follows:

2025 2024
£000's £000's
CBF Church of England Investment Fund Income Shares 6,697 6,854
CBF Church of England Interest Securities Fund Shares 554 732
COIF Income and Accumulation Shares 235 235
CBF Church of England Deposit Fund 829 879
Cash at Bank 278 286
8,593 8,986

SHEFFIELD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

27 Prior year comparative statement of financial activities

Unrestricted
Designated
Restricted
Endowment
funds
funds
funds
funds
Notes
£000's
£000's
£000's
£000's
Income and endowments from:
Donations
3
- Parish contributions
3,689
-
246
-
- Archbishops' council
1,822
129
2,219
-
- Other donations
122
137
56
-
Charitable activities
4
336
35
20
-
Other activities
5
246
1
38
-
Investments
6
392
-
270
40
Other income
7
108
-
-
167
Total income
6,715
302
2,849
207
Expenditure on:
Raising funds
8
-
-
78
-
Charitable activities
9
7,753
309
3,513
-
Total expenditure
7,753
309
3,591
-
Net gains on investments
10
98
-
202
239
Net (expenditure) / income
(940)
(7)
(540)
446
Transfers between funds
11
(291)
7
284
-
Net movement in funds
(1,231)
-
(256)
446
Reconciliation of funds:
At 1 January 2024
6,730
-
8,450
45,657
At 31 December 2024
5,499
-
8,194
46,103		 Total
2024
£000's
3,935
4,170
315
391
285
702
275
10,073
78
11,575
11,653
539
(1,041)
-
(1,041)
60,837
59,796