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2024-12-31-accounts

ae THE CHURCH © Seeking.

The Newcastle Diocesan Board of Finance Limited

(A company limited by guarantee)

Annual Report & Financial Statements

Year ended 31 December 2024

Company number 00650977 Registered charity number 247233

A large print version is available on request from

Church House St John’s Terrace North Shields NE29 6HS

E-mail: info@newcastle.anglican.org Telephone: 0191 270 4100

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

TABLE OF CONTENTS Page Number
Mission Statement 3
Trustees Annual Report
Legal Objects 4
Strategic Report:
Strategic aims and objectives 4
Activities and achievements in the year 5
Future plans 8
Financial review 9
Principal risks and uncertainties 11
Structure and Governance 12
Trustees Responsibilities 15
Administrative details 16
Independent Auditor’s Report 18
Statement of Financial Activities 21
Income and Expenditure Account 22
Balance Sheet 23
Cash Flow Statement 24
Notes to the Financial Statements 25 - 48

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2024

ANNUAL REPORT

Mission Statement

With our outward-facing values of seeking , sharing , and sending we are further seeking to grow younger and more diverse. God calls us all to follow Christ, and in baptism the whole Church is summoned to witness to God’s love and to work for the coming of his kingdom. This is the shared vocation of all God’s people: we are all called to mission and ministry as part of what it means to follow Jesus together as his disciples.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

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 2024. The Directors/Trustees are one and the same and in signing as Trustees they are also signing the strategic report sections in their capacity as Directors.

This combined report satisfies the legal requirements for:

LEGAL OBJECTS

The objects of the Diocese of Newcastle cover the local authorities of Northumberland, Newcastle, and North Tyneside and also small parts of County Durham and Cumbria.

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

The NDBF has the following statutory responsibilities:

The main role of the NDBF is to identify and manage the financial aspects of the provision of ministry within the Diocese so as to provide appropriate personnel and financial resources to assist the Diocesan Synod, the Bishop’s Council, deaneries and parishes to further the mission and strategic priorities throughout the Diocese of Newcastle.

The strategic priorities of the company are established by the Diocesan Synod in consultation with Deanery Synods, Parochial Church Councils, and the Bishop of Newcastle (in respect of the Bishop’s responsibility for the provision of the cure of souls).

STRATEGIC AIMS AND OBJECTIVES

The Diocese of Newcastle aims to be a church which is Jesus Christ centred and outward facing in mission. The witness and mission of the Diocese is focused on three priorities of Seeking, Sharing, Sending . In living out these three values the Diocese of Newcastle is seeking to become a church of missionary disciples which fosters a mixed ecology of church and which includes establishing new worshipping communities, to be a church that is growing younger and more diverse.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

ACTIVITIES AND ACHIEVEMENTS IN THE YEAR

Leadership

The Diocese is led by the Bishop of Newcastle: Rt Revd Dr Helen-Ann Hartley who is an ex-officio trustee of the NDBF, supported by the Bishop of Berwick: Rt Revd Mark Wroe and the Dean at Newcastle Cathedral: Very Revd Lee Batson.

The serving Diocesan Secretary, Shane Waddle, left in August 2024 and was replaced by Chris Elder on 8[th] October 2024, the appointment initially to March 2026. Other changes include the Head of Safeguarding, Carol Butler, leaving in October who is to be replaced by Sharon Devlin starting in April 2025 and the Bishop’s Chaplain, Pete Askew, departing with a successor to be recruited.

The Christian Presence

Our licensed ministers form a central part in the life of churches in the Newcastle Diocese and carry out important roles in communities. As well as engaging in a wide variety of community and church projects, we carry out around 263 weddings, 1,481 funerals and 1,196 baptisms every year.

In 2023 a Youth and Children’s Mission Coordinator and two Youth and Children Enablers were recruited to a project called Beyond Youth. This project has been generously supported by £300k awarded to the NDBF by the Lord Crewe’s Trustees’ Tercentenary Awards. The Beyond Youth Team is working across the parishes of Ashington Holy Sepulchre, Seaton Hirst, Cresswell & Lynemouth and Woodhorn with Newbiggin to build up the profile of youth and children’s work. The Diocese of Oxford has generously provided funding, through national Lowest Income Communities Funding, for a timelimited full-time Pioneer Minister serving the Bishop’s Mission Order covering these parishes.

In 2025 the Lighthouse project, in the heart of Byker, will open a facility where around 1,500 young people and their families can access a wide variety of community activities and services. This is funded through an award of £300k from Lord Crewe’s Trustees, £4.2m from the Department for Culture, Media and Sport’s Youth Investment Fund and a grant from the Squires Foundation.

While the NDBF is responsible for the funding of clergy stipend costs, the national clergy payroll is administered by the Church Commissioners whom the NDBF reimburses monthly for the costs of stipendiary clergy deployed in the Diocese. Caring for the licensed clergy and lay workers in the Diocese is a priority of the NDBF and represents by far its largest financial commitment. Although the NDBF does not employ the parish clergy, it is responsible for ministerial formation, continued ministerial development and, where applicable, resourcing the stipend and paying into the pension fund.

In 2024 there was an average of 71 full-time equivalent (FTE) paid clergy, holding incumbent, priestin-charge, team vicar or associate clergy roles in post (2023: 78.5FTE). On average, throughout the year, there were 9 FTE incumbent status posts vacant (in interregnum) comparing to 12FTE in 2023. In addition to the above establishment there were an average of 16FTE paid curates in training posts (2023: 17.5FTE), 2FTE Archdeacons; 1.2FTE paid chaplains, 1FTE pioneer minister serving at Seaton Hirst; 1FTE Missioner serving at Denton and 2FTE serving in Ashington as part of the Beyond Youth initiative.

46 licensed Readers; 2 house for duty clergy; 14 self-supporting clergy and 18 Authorised Lay Ministers also served in parishes across the Diocese in 2024.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

The NDBF extends its gratitude to all those who have helped to provide worship during interregnums in 2024, particularly to Area Deans and Churchwardens who work closely to ensure scheduled services and other activities within the community continue uninterrupted.

For many, the clergy house represents the domestic heart of the parish, serving not only as a home but also as a base for ministry. The NDBF recognises the importance of a safe, secure and well-maintained house. Through the Houses & Glebe Committee the NDBF strives to continue with this work as well as carrying out programmed refurbishments and improvements, as available money allows. Our housing policy continues to:

In 2024 the Diocesan Mission and Pastoral Committee (DMPC) appointed a new secretary to help review suspensions of presentation across all 12 deaneries and also for the development of proposals for reorganisations of benefices.

Church Buildings – 2024

The Diocesan Advisory Committee (DAC) held 8 meetings in 2024 plus one special meeting to discuss a specific time sensitive case. The Committee reviewed 52 faculty applications and offered informal advice to PCCs on 31 cases. It also considered the appointment of 13 new inspectors for Quinquennial Inspections. Members caried out 17 site visits plus 2 progress visits to St Michael’s, Byker to see the work on the redevelopment of the building and its extension.

Non-faculty work (authorised by the Archdeacon after review by a DAC member) saw a large increase to 111 cases from 89 in 2023. Membership remained the same with the exception of the stepping down of Revd Richard Deadman in October.

The Committee set up a solar panel working group to discuss its response to enquiries from PCCs and to develop some guidance which is ongoing. The Committee was also visited in March by David Knight, Deputy Director for Church Buildings from the Church Buildings Council (CBC). This was to observe the meeting and provide an update on the work of the CBC.

A Safer Church Open to All

In 2024 Newcastle has continued to be at the forefront to the wider debate on national changes to safeguarding. The safeguarding provision for the Diocese was audited as part of the independent safeguarding audit programme for the Church of England (CofE) commissioned by the Archbishops’ Council and overseen by the CofE’s National Safeguarding Team (NST). Led by the INEQE Safeguarding Group, the audit tested the sufficiency of safeguarding arrangements within CofE dioceses, having a particular focus on Diocese Boards of Finance (DBFs) and Cathedrals.

The report identified the determination of the Bishop to drive the improvement journey across Newcastle and strengthen the safeguarding arrangements as they exist within the DBF and at parish level. These plans include the realignment of governance alongside further initiatives, outreach and partnerships that have been built and that continue to be supported. The report noted the good work done by the DST and the level of collaboration that the Audit has seen with external agencies and the investment in a range of different safeguarding projects was impressive. An appetite to

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

innovate was evident as seen through the excellent work to support and co-produce some outstanding initiatives with victims and survivors.

However, the report noted that the potential to maintain a positive trajectory is undermined by a critical lack of capacity in the DST. The safeguarding arrangements were largely insufficient when considering the team’s breadth of responsibilities and the growing demands that are being placed upon it. The deficits in the DST’s ability to perform to its optimum level ran the risk of undermining everything it has achieved thus far. Accordingly, in December a new safeguarding staffing structure was formulated (in line with the Ineqe recommendations), and an interim caseworker appointed. The new team is expected to be fully staffed by April 2025. The Lead Officer for the Chaplaincy for Survivors has continued to provide pastoral and spiritual care for survivors from across the Diocese, a service praised by Ineqe.

A research initative led by the University of Sunderland concluded focused on “ How can the Newcastle Diocese Safeguarding Team better support Incumbents, Parish Safeguarding Officers and Churchwardens in the effective implementation of Church of England safeguarding policy in practice?” The recommendations from this are to be addressed by the new Safegurading team once in place.

Community Engagement

Our churches are embedded in their communities and, as a result, have developed trusting relationships and networks, enabling churches to play an important part in responding to the challenges faced by neighbourhoods and communities today.

In 2023, the Lord Crewe’s Trustees generously provided funding to the NDBF to continue a partnership with Transforming Communities Together: Tyne to Tweed (“TCTTT”). This partnership supports the development of connections and relationships with congregations with TCTTT acting as a resource to churches, individuals and groups that are wanting to get involved in some form of community activity as part of their mission and commitment to community engagement and social action.

Other connected parties

The major connected parties with whom the NDBF works include:

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Volunteers

The Diocese of Newcastle is dependent on the huge number of people involved in church activities both locally and at diocesan level. We believe that the number of active volunteers (or volunteer hours) given to the mission and ministry of the church is a key indicator of the health of a church. The service provided to a community through church volunteering also has a significant impact on people’s relationship to the church particularly at times of crisis.

Within this context, the NDBF values the considerable time given by all members of Parochial Church Councils, the deanery synods, boards, committees, and the Newcastle Diocesan Synod in pursuit of the mission of the Church of England in the Diocese of Newcastle.

FUTURE PLANS

All 12 deaneries continued to engage in the work of the Deanery Planning process. This process empowers each deanery to develop their vision and mission plans, consistent with the overall values and priorities discerned by the Diocese, for the deployment of our clergy and lay ministry appropriate to the local context of each deanery. The work continues, supported by the Archdeacons and the local Deanery Development Groups, to meet the competing demands of mission and ministry in each locale against a challenging financial context.

Public Benefit

The diocesan vision of seeking, sharing and sending is instrumental 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 NDBF delivers public benefit through community engagement and supporting those in need both spiritually and physically.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

FINANCIAL REVIEW

Financial performance

Parish Share, the financial contribution given by parishes to the Diocese to fund mission and ministry, was the main incoming resource for the Diocese. Excluding the arrears received from earlier years, share decreased in cash terms by £46k compared to 2023, and including arrears share decreased by £78k compared to 2023. The total share received in 2024 (before prior year arrears) when expressed as a percentage of the overall share offered was 98 % (2023: 98.5%).

The Trustees extend their gratitude to all the parishes who completed their parish share contributions during 2024. The Trustees are thankful to parishes that were able to make their parish share contributions by monthly instalments which helped the NDBF to resource the monthly financial responsibilities associated with the payment of clergy stipends and the salaries of those employed by the NDBF.

The balance on the General Unrestricted Fund increased by £545k in 2024 to £830k. There was an overall unrestricted surplus of £439k and there was a net gain in our investment in equities, held with CCLA Investment Management Ltd (CCLA), of £90k. Overall, after investment gains, we saw a net deficit £293k.

The Trustees have prepared a budget for 2025 which includes a deficit of £911k and parish share of £3.88m.

Overall the NDBF’s funds have decreased in 2024 by £293k. This breaks downs as an operating surplus on unrestricted funds of £439k after transfers (£567k deficit before transfers), net outgoing resources on restricted and endowment funds of £732k (after transfers), and unrealised gains on investments of £90k.

Significant property transactions

During 2024 properties and one piece of land were purchased, 20 Radcliffe Park in Bamburgh, 97 Whitton View in Rothbury and 18 The Closes in Edmundbuyers. These purchases amounted to £972k with 18 The Closes purchased using endowment funds.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Balance sheet position

The Trustees consider that the balance sheet together with details in note 21 show broadly that the restricted and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net assets at the balance sheet date totalled £26.637m (2023: £26.931m) it must be remembered that included in this total are properties, mostly in use for the ministry, whose value amounted to £17.897m (2023: £16.947m). Much of the remainder of the assets shown in the balance sheet are held in restricted funds, and cannot necessarily be used for the general purposes of the NDBF.

Reserves policy

Free reserves

Having considered financial risk, liquidity requirement and the timing of cash flows throughout the year, the Trustees’ policy is to aim to maintain c.£2m in unrestricted investments for future income generation (2023 actual £2.3m) with an additional 3 months expenditure (c. £1.9m) held in readily realisable assets (2024 actual £2.5m). The Trustees are satisfied with reserves at the current level in line with the aims of the policy.

Reserves tied up in fixed assets

The general fund comprises net assets amounting to £830k of which £20k is tied up in tangible fixed assets.

Designated funds

The Trustees may, with the approval of the board, designate unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed from time to time and returned to the General Fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. A description of each reserve together with the intended use of the reserve is set out in note 22. At 31 December 2024 total designated reserves were £6.7m (2023: £6.81m).

Restricted and endowment funds

As set out in note 21, NDBF holds and administers a number of restricted and endowment funds. As at 31 December 2024 restricted funds totalled £1.5m (2023: £2.3m) and endowment funds totalled £17.62m (2023: £17.54m). Neither are available for the general purposes of the NDBF.

Going concern

The Trustees have considered the 2025 operating environment and availability of reserves and cash and the impact upon the going concern basis of preparation of these financial statements. At the time of writing the 2025 cashflow forecast, based on the approved budget and reporting from parishes on what they feel able to contribute in parish share during 2025, projects a fall in cash of £911k during 2025. The Trustees are keeping the operating environment under constant review and consequent impacts on general reserves. A number of groups have been established to identify ways in which the NDBF could generate additional income and utilise the asset base to increase income and generate additional cash. If the operating environment becomes more challenging than expected, it is possible that the Board would need to consider reducing operations in order to limit expenditure, consider utilising certain restricted reserves beyond the budgeted amount, or realising assets. The Trustees are comfortable that these measures, along with the current levels of cash and short-term deposits, are sufficient to allow the Diocese to continue to operate as a going concern for the foreseeable future.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Grant making policy

The Memorandum of Association of the NDBF explicitly permits the NDBF to make grants in pursuance of its objects, and the nature of grants made in 2024 is indicated in note 11. Certain grants are built into the Diocesan Budget which is approved by the Diocesan Synod, whilst others are overseen by the Bishop’s Council, the Diocesan Finance Group and the Diocesan Mission and Pastoral Committee.

Investment policy

The Memorandum and Articles of Association of the charity permit wide powers of investment. NDBF's investment policies are based on two key criteria:

These policies are achieved by holding all NDBF funds with CCLA. The Newcastle Diocesan Society holds one portfolio with RBC Brewin Dolphin for the NDBF. This was received as part of a legacy from the late Bishop Alec Graham. All funds held for the NDBF by the Diocesan Society conform to the guidance given by the Church’s Ethical Investment Advisory Group.

Investment policy for long-term funds is aimed primarily at generating a sustainable income with due regard to the need for the preservation of capital value and the possible need to realise investments to meet operational needs.

Glebe investments are held for the purpose of raising income to achieve the maximum contribution possible to clergy stipends on an on-going basis. Unrestricted and restricted fund investments are invested to balance income, liquidity and the maintenance of capital.

As part of the Diocesan Synod’s ongoing pledge to tackle the climate emergency and become netzero carbon by 2030, the NDBF has confirmed its commitment not to invest in companies involved in the extraction of fossil fuels, and pledged not to invest in fossil fuel companies in future. The NDBF has joined Operation Noah’s Bright Now campaign. Operation Noah is a Christian charity working with the Church to inspire action on the climate crisis and is calling on all UK churches to divest from fossil fuels and invest in clean alternatives.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees are responsible for the identification, mitigation and management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is subject to review by the Trustees on an annual basis with the responsibility for delivery of the mitigation strategies identified by it being delegated to the Diocesan Secretary. In 2024 the Finance Group, a sub-committee of the Bishop’s Council, reviewed the Risk Register.

The receipt of voluntary financial contributions from parishes through Parish Share remains the major risk to the Board’s overall performance. The Trustees have put in place a framework of support, including regular communication, active management through the Finance Group and budget consultation to mitigate this risk.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

STRUCTURE AND GOVERNANCE

Summary Information about the structure of the Church of England

The Church of England is the established church and HM The King is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is under the care of a Diocesan Bishop who is charged with the cure of souls of all the people within that geographical area. This charge is shared with priests within benefices and parishes which are sub-divisions of the Diocese.

The National Church has a General Synod comprised of ex-officio members and elected representations from each Diocese. In 2021 six representatives from the Diocese of Newcastle (three lay and three clergy) were elected to serve on the General Synod for the current quinquennium. The General Synod agrees, and lays before Parliament, Measures for the governance of the church’s affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops’ Council has a coordinating role for work authorised by the Synod; the Church Commissioners manage the historic assets of the Church of England; and the Church of England Pensions Board administers the pension schemes for clergy and lay workers. Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod.

The Diocese of Newcastle is divided into twelve deaneries, each with its own Deanery Synod and within each parish there is a Parochial Church Council which shares with the parish priest responsibility for the mission of the church in that place, in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod.

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

Organisational structure

NDBF is a company incorporated in England, limited by guarantee (No. 00650977) and a registered charity (No. 247233) 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 Newcastle. It was established in its present form in 1882.

Governance and policy of the NDBF is the responsibility of the Trustees, who are also members of the company and Trustees for the purposes of charity law. There are nine ex-officio Trustees and six lay members and three clergy members elected from and by the members of Diocesan Synod every three years. The most recent elections were held in November 2024 with the next elections due in the Autumn of 2027. The details of Trustees who served during 2024 are set out on page 17.

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’s membership is elected every three years, the last elections having been in July 2024. The next elections to the Diocesan Synod are scheduled to take place in 2027. Whilst the NDBF 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 2000 the NDBF 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.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Decision making structure

Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of Newcastle are set by the Diocesan Synod, and the NDBF. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Diocesan Secretary. The members of the company meet once a year in general meeting to receive and approve the annual report and financial statements and to appoint the auditors. The Diocesan Synod each year receives and agrees the annual budget, prepared and approved by the NDBF. The Trustees, meeting within the context of the Bishop’s Council & Standing Committee, hold up to seven meetings during the year to formulate and coordinate policies on mission, ministry and finance by:

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

Finance Group : responsible for considering the financial affairs of the Diocese. Amongst other things, it draws up draft budgets for approval by the Trustees prior to submission to Diocesan Synod and monitors expenditure and income. The group comprises eight members of whom six are Trustees.

Houses & Glebe Committee : responsible for advising on policy concerning the management of parsonage houses in each benefice of the Diocese of Newcastle, including setting the policy for buying, repairing, maintaining and disposing of all parsonage houses, team vicarages and houses owned by NDBF, together with responsibility for determining policy and making decisions concerning the management of glebe property and investments for the benefit of the Diocesan Stipends Fund of NDBF. The committee comprises 6 members of whom 2 are Trustees.

Diocesan Mission & Pastoral Committee : responsible for advising on pastoral reorganisation in the Diocese of Newcastle, taking account of available clergy numbers and making use of new patterns of ministry. The Committee also advises on the finding of appropriate alternative uses for churches closed to regular public worship. The committee comprises 9 members of whom 4 are Trustees.

Diocesan Advisory Committee : advises on matters affecting churches and places of worship in the Diocese such as granting of faculties, architecture, archaeology, art and history of places of worship, the use and care of places of worship and their contents and the care of churchyards. The committee comprises 18 members of whom 3 are Trustees.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Trustee recruitment, selection and induction

The Trustees are the members of the Bishop’s Council. There are ex-officio members, elected members, with elections taking place every three years, and there is provision for co-opted members. Trustees are given induction at the outset of the triennium and at other times as appropriate. They are informed about the role and function of the Bishop’s Council before seeking membership. All Trustees are required to sign the code of practice and maintain their entry in the declarations of interest and loyalty.

Remuneration of key management personnel

Emoluments of higher-paid employees are determined by the Bishop of Newcastle, the Chair of the Board of Finance and the Human Resources Manager with reference to appraisals and remuneration and salary benchmarking.

Delegation of day to day delivery

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

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees (as Directors) to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the NDBF and of the surplus or deficit of the NDBF 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 NDBF 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 NDBF 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 NDBF’s website. Legislation in England/Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.

STATEMENT OF DISCLOSURE TO THE AUDITORS

So far as the Trustees are aware:

APPOINTMENT OF AUDITORS

The auditor is deemed to be reappointed under section 487 (2) of the Companies Act 2006 until otherwise resolved at a general meeting of the company.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

ADMINISTRATIVE DETAILS

Ex officio Trustees

The Bishop of Newcastle, the Right Reverend Dr H-A Hartley The Suffragan Bishop of Berwick, the Right Reverend M Wroe The Dean of Newcastle, the Very Reverend L Batson The Archdeacon of Lindisfarne, the Venerable Dr C A Sourbut Groves The Archdeacon of Northumberland, the Venerable R A Wood The Chair of the Diocesan Board of Finance, Canon S R Harper The Chair of the House of Clergy, the Reverend Canon B Hurst (to 01/12/2024) The Chair of the House of Clergy, the Reverend Robert Lawrance (from 01/01/2025) The Chair of the House of Laity, Canon I McDonald-Booth The Chair of the Diocesan Mission and Pastoral Committee, Mrs E A Kerry (to 01/12/2024) The Chair of the Diocesan Mission and Pastoral Committee, The Reverend L Taylor-Kenyon

Elected Trustees

Dr JC Appleby Professor G Holmes (to 01/12/2024) Mrs E Doran Mrs L Craggs (to 01/12/2024) The Reverend Benjamin Doolan (from 01/01/2025) The Reverend David Glover (from 01/01/2025) Carol Griffiths (from 01/01/2025) Joshua Jee (from 01/01/2025) Dominic Llewellyn (from 01/01/2025) The Reverend Dr Claire Maxim (from 01/01/2025) Gwyneth McKenzie (from 01/01/2025)

Secretary

C Elder (from 01/10/2024) S Waddle (resigned 01/08/2024)

Auditors:
 UNW LLP, Chartered Accountants & Statutory Auditors,
Citygate, St. James' Boulevard, Newcastle upon Tyne, NE1 4JE
Bankers:
 Barclays Bank plc, Barclays House,
5 Queen Ann’s Street, Newcastle upon Tyne, NE1 3DX
Solicitors: Sintons LLP, The Cube,
Barrack Road, Newcastle upon Tyne, NE4 6DB
Investment Manager: CCLA Investment Management Ltd, Senator House,
85 Queen Victoria Street, London EC4V 4ET
Glebe Agent: Galbraith, Blagdon Estate Office
Seaton Burn, Newcastle upon Tyne, NE13 6DE
Insurers:
 Ecclesiastical, Beaufort House,
Brunswick Road, Gloucester, GL1 1JZ
Registered Office: Church House, St John’s Terrace, North Shields, NE29 6HS
Telephone: 0191 270 4100
Website: www.newcastle.anglican.org
E-mail: info@newcastle.anglican.org
Company registration number: 00650977
Registered charity number: 247233

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report included on pages 4 – 12 within their capacity as company Directors.

BY ORDER OF THE TRUSTEES

Canon S Harper

C Elder

Chair Secretary 12 May 2025 12 May 2025

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Independent Auditor’s Report to the members of The Newcastle Diocesan Board of Finance Limited

Opinion

We have audited the financial statements of The Newcastle Diocesan Board of Finance Limited for the year ended 31 December 2024 comprising the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, Statement of Cash Flows and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 of 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 entity'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.

Respective responsibilities of Trustees and auditor

The other information comprises the information included in the Trustees annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to 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.

Page 18

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' report for which the financial statements are prepared is consistent with the financial statements, and the Directors’ report included within the Trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which 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, 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's or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the Trustees and other management (as required by Auditing Standards) and from inspection of the charitable company's legal correspondence, and we discussed with the Trustees and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Page 19

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies and charities legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the charitable company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; data protection, safeguarding and certain aspects of company legislation, recognising the nature of the charitable company's activities. Auditing Standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. Through these procedures, we became aware of actual or suspected non-compliance and considered the effect as part of our procedures on the related financial statement items. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result in any further disclosure within our report or the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Who are we reporting to

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Anne Hallowell BSC DChA FCA (Senior Statutory Auditor) For and on behalf of UNW LLP, Statutory Auditor

Newcastle upon Tyne

12 May 2025:

Page 20

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR YEAR ENDED 31 DECEMBER 2024

Note
Income from
Donations
Parish contributions
2
Archbishops' Council
2
Other donations
2
Charitable activities
3
Other activities
4
Investments
5
Other
6
Total income
Expenditure on
Raising funds
7
Charitable activities
8
Total expenditure
Net incoming/(outgoing)
resources before investment
gains
Net gains on investments
15
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds at 31 December
2024
20		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
3,790,033
-
-
3,790,033
3,868,523
1,170,562
-
-
1,170,562
1,251,784
645,782
613,625
-
1,259,407
1,544,672
293,868
585
-
294,453
327,706
525,055
-
-
525,055
437,686
261,061
26,318
60,099
347,478
417,309
-
294,000
-
294,000
269,311
6,686,361
934,528
60,099
7,680,988
8,116,991





(81,209)
-
-
(81,209)
(86,540)
(7,384,784)
(582,443)
(16,128)(7,983,355)(7,790,707)
(7,465,993)
(582,443)
(16,128) (8,064,564)(7,877,247)
(779,632)
352,085
43,971
(383,576)
239,744





51,946
-
38,357
90,303
378,959
(727,686)
352,085
82,328
(293,273)
618,703





1,166,819 (1,166,819)
-
-
-
439,133
(814,734)
82,328
(293,273)
618,703
7,091,400
2,301,110
17,538,018 26,930,528 26,311,825
7,530,533
1,486,376
17,620,346 26,637,25526,930,528

All incoming resources and resources expended relate to continuing activities.

Page 21

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

INCOME AND EXPENDITURE ACCOUNT FOR YEAR ENDED 31 DECEMBER 2024

Total Total
2024 2023
£ £
Total incoming resources 7,620,889 7,830,969
Resources expended (8,048,436) (7,864,698)
__ __
Operating surplus for the year (427,547) (33,729)
Net gains/(losses) on investments 51,946 196,722
__ __
Net income/(deficit) for the year (375,601) 162,993
__ __
Total comprehensive income (375,601) 162,993
__ __

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

Page 22

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

BALANCE SHEET AS AT 31 DECEMBER 2024

2024 2023
Note £ £
Fixed assets
Tangible assets 14 17,917,291 16,977,052
Investments 15 5,742,199 5,651,896
23,659,490 22,628,948
Current assets
Debtors 16 268,514 188,416
Investments 17 2,560,695 3,669,546
Cash at bank 471,154 874,396
3,300,363 4,732,358
Creditors: amounts falling due within one
year 18 (317,554) (425,734)
Net current assets 2,982,809 4,306,624
Total assets less current liabilities 26,642,299 26,935,572
Creditors: amounts falling due after more
than one year 19 (5,044) (5,044)
Net assets 26,637,255 26,930,528
The funds of the charity:
Endowment funds 21 17,620,346 17,538,018
Restricted income funds 21 1,486,376 2,301,110
Unrestricted income funds:
General funds 21 830,273 284,311
Designated funds 21 6,700,260 6,807,089
Total funds 26,637,255 26,930,528

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the trustees on 12 May 2025 and signed on their behalf by:

— Canon SR Harper Chair Company registered number: 00650977

The notes on pages 25 to 48 form part of these financial statements.

Page 23

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

STATEMENT OF CASH FLOWS FOR YEAR ENDED 31 DECEMBER 2024

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
Net cash used in investing activities

Cash flows from financing activities
New loans advanced

Repayment of loans advanced

Net cash provided by financing activities

Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Reconciliation of net movement in funds to net cash flow from operating
activities
Net income/(expenditure) for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gain)/loss on investments
Dividends, interests and rents from investments
Decrease in debtors
(Decrease)/increase in creditors
Profit on sale of fixed assets
Net cash used in operating activities
Analysis of cash and cash equivalents
Cash in hand
Deposits (less than 3 months)		 2024
£
(1,065,258)		 2023
£
(412,317)
525,055
-
(971,890)
-		 417,309

501,394
(10,538)

(291,143)
(446,835) 617,022
-
-
(1,500)

3,000
-
1,500
(1,512,093)
4,543,942		 206,205
4,337,737
3,031,849 4,543,942
2024
(293,273)
31,651
(90,303)
(525,055)
(80,098)
(108,180)
-		 2023
£
618,703
36,602
(378,959)
(417,309)
54,619
(56,662)
(269,311)
(1,065,258) (412,317)
471,154
2,560,695
3,031,849

Page 24

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

1. PRINCIPAL ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention, with the exception of freehold properties and fixed asset investments. The majority of freehold properties are shown at their 1995 valuation, based on a desk-top study carried out by a Chartered Surveyor working for Black Horse Agencies. Property additions since 1995 are shown at cost or at a lower fair value where the Trustees consider that this is appropriate. Fixed asset investments are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015), the Companies Act 2006 and applicable accounting standards (FRS 102).

NDBF meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared in sterling which is the functional currency of the charity and are rounded to the nearest £1.

The principal accounting policies and estimation techniques are as follows.

a) Income

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

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

b) Expenditure

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

Page 25

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

c) Going concern

The Trustees have considered the 2025 operating environment and availability of reserves and cash and the impact upon the going concern basis of preparation of these financial statements. At the time of writing the 2025 cashflow forecast, based on the approved budget and reporting from parishes on what they feel able to contribute in parish share during 2025, projects a fall in cash of £911k during 2025. The Trustees are keeping the operating environment under constant review and consequent impacts on general reserves. If the operating environment becomes more challenging than expected, it is possible that the Board would need to consider reducing operations in order to limit expenditure, consider utilising certain restricted reserves beyond the budgeted amount, or realising assets. The Trustees are comfortable that these measures, along with the current levels of cash and short-term deposits, are sufficient to allow the Diocese to continue to operate as a going concern for the foreseeable future.

d) Tangible fixed assets and depreciation

Freehold properties

Depreciation is not routinely provided on buildings except in those few cases where the Trustees feel that the net book value is higher than the fair value. In such cases annual depreciation is charged, on a straight-line basis, at an amount equivalent to 2% of the excess of net book value over fair value. For the vast majority of properties depreciation is not regarded as a material amount due to the very long expected remaining useful economic life in each case, and because the expected residual value is not materially less than the carrying value. The NDBF 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 FRS 102 to ensure that the carrying value is not more than the recoverable amount.

Investment properties

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

Page 26

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

Parsonage houses

The NDBF has followed the requirements of FRS 102, in its accounting treatment for benefice houses (parsonages). FRS 102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The NDBF 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 capitalise as endowed assets at cost. Parsonage houses are not routinely revalued. Depreciation is not routinely provided on Parsonage houses except in those few cases where the Trustees feel that the net book value is higher than the fair value. In such cases annual depreciation is charged, on a straight-line basis, at an amount equivalent to 2% of the excess of net book value over fair value.

e) Other tangible fixed assets

All capital expenditure over £1,000 on computers and other office equipment is capitalised and depreciated as follows. Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asset’s acquisition) of other fixed assets over their currently expected useful economic lives at the following initial rates:-

Computers and printers 25% per annum straight line basis Equipment, fixtures and fittings 10-25% per annum straight line basis

f) Fixed asset investments

Listed investments, which have been classified as fixed assets investments, are measured initially and subsequently at fair value. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.

g) Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any trade discounts due.

h) Cash at bank and in hand

Cash at bank and in hand includes cash and highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i) Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. When the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

j) Financial instruments

The company only enters into financial instruments transactions that result in the recognition of basic debt financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances and loans to or from related parties. All such instruments are due within one year, and are measured, initially and subsequently at the transaction price.

At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment charge is recognised in the statement of financial activities.

Page 27

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

k) Fund balances

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

l) Estimates and judgments

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In preparing these financial statements the Trustees do not consider there were any significant areas of judgment that were required in applying the company’s policies as set out above.

Estimates within these financial statements include depreciation and asset valuations (for example agricultural land). None of the estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 28

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

2 DONATIONS

Parish Contributions

Parish Contributions
Parish share
Current year's allocation
Shortfall
Parish contributions
Arrears for previous years		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
3,866,984
-
-3,866,9843,881,983
(87,674)
-
-
(87,674)
(56,473)
3,779,310
-
-3,779,3103,825,510
10,723
-
-
10,723
43,013
3,790,033
-
- 3,790,0333,868,523

Archbishops' Council

Archbishops' Council
Lowest Income Communities funding
Transitional funding		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
1,170,562
-
-1,170,5621,068,283
-
-
-
-
183,501
1,170,562
-
- 1,170,5621,251,784

Page 29

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

2 DONATIONS (continued)

Other donations

All Churches Trust grant
Lord Crewe's Charity grant
Grants received for Rural Churches
for Everyone Project
Grants received for Resource
Church Project
Church Commissioners -
restructure funding
Church Commissioners -
Safeguarding Funding
Church Commissioners - strategic
development funding
Church Commissioners - parish
utilities support funding
Archbishops' Council - Net Zero
Capacity Building
Newcastle Diocesan Society
Newcastle St Andrew
Durham Diocesan Board of Finance
Ely Diocesan Board of Finance
Archbishops' Council
Archbishops' Council Housing
Demonstrator Fund
Archbishops' Council – Church
support
Bishop's House
Other		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total Funds
2024
Total Funds
2023
£
£
£
£
£
91,053
-
-
91,053
105,875
187,289
-
-
187,289
244,000
-
-
-
-
33,675
-
463,867
-
463,867
62,175
-
(144,479)
-
(144,479)
137,700
101,862
-
-
101,862
6,900
-
218,533
-
218,533
188,865
-
-
-
-
335
-
-
-
-
15,000
13,892
-
-
13,892
12,087
28,978
-
-
28,978
28,159
50,986
-
-
50,986
114,440
39,213
-
-
39,213
76,037
-
-
-
-
(2,043)
-
71,470
-
71,470
-
27,898
-
-
27,898
-
-
-
-
-
49,544
104,611
4,234
-
108,845
471,923
645,782
613,625
-
1,259,407
1,544,672

For other donations in 2023 £326,565 from Church Commissioners and £110,850 from other funders were restricted (total £766,307) with the balance of £754,401 being unrestricted.

Page 30

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

3 CHARITABLE ACTIVITIES

Statutory fees (funerals,
weddings)
Chaplaincy income
 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
241,930
585
-242,515
267,722
51,938
-
-
51,938
59,984
293,868
585
- 294,453
327,706

In 2023 all income related to unrestricted funds.

4 OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
Rental of houses
Contributions for use of Church House
Other contributions		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
499,705
-
-499,705387,156
25,350
-
-
25,350
27,830
-
-
-
-
22,700
525,055
-
- 525,055437,686

In 2023 £3,000 from rental of houses and £22,700 from other contributions related to restricted funds (total £25,700) with £411,986 being unrestricted.

5 INVESTMENT INCOME

INVESTMENT INCOME
Income from UK listed investments
Bank interest receivable
Rents from Glebe		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
53,870
-
60,099113,969162,617
187,191
19,818
-207,009200,992
20,000
6,500
-
26,500
53,700
261,061
26,318
60,099 347,478417,309

In 2023 £501 from listed investments, £23,042 from bank interest receivable and £6,250 rents from Glebe were restricted (total £29,796) with £310,626 being unrestricted. £76,890 of listed investment income in 2023 was endowed.

Page 31

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

6 OTHER INCOMING RESOURCES

OTHER INCOMING RESOURCES
Total Total
Unrestricted Restricted Endowment Funds Funds
Funds Funds Funds 2024 2023
£ £ £ £ £
Profit on sale of assets - - - - 269,311
Pension surplus on scheme
closure (see note 24) - 294,000 - 294,000 -

In 2023 income related to unrestricted and endowment funds.

7 FUNDRAISING COSTS

Glebe costs
Parsonage rental costs		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
3,000
-
-
3,000
8,095
78,209
-
-
78,209
78,445
81,209
-
-
81,209
86,540

Page 32

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

8 CHARITABLE ACTIVITIES

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
Contributions to
Archbishops' Council
Training for ministry
171,387
-
-
171,387
171,934
National church
responsibilities
93,796
-
-
93,796
100,536
Grants and provisions
17,627
-
-
17,627
17,705
Mission agency pension
contributions
-
-
-
-
5,504
Retired clergy housing
costs (CHARM)
71,290
-
-
71,290
68,105
Pooling of ordinand
candidates' costs
13,895
-
-
13,895
54,838
367,995
-
-
367,995
418,622

Resourcing Ministry and
Mission
Parish Ministry
Stipends and national insurance
2,953,104
88,187
-
3,041,2913,087,255
Pension contributions
614,940
18,533
-
633,473
716,455
Housing costs
924,548
32,505
3,652
960,705
869,485
Removal, resettlement and
grants
98,116
-
-
98,116
85,125
Other expenses
91,770
1,004
-
92,774
158,084
4,682,478
140,229
3,652
4,826,3594,916,404
Support for parish
ministry
2,334,311
442,214
12,476
2,789,0012,455,681
7,016,789
582,443
16,128
7,615,3607,372,085
7,384,784
582,443
16,128
7,983,3557,790,707		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
171,387
-
-
171,387
171,934
93,796
-
-
93,796
100,536
17,627
-
-
17,627
17,705
-
-
-
-
5,504
71,290
-
-
71,290
68,105
13,895
-
-
13,895
54,838		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
Total
Funds
2023
£
£
£
£
£
171,387
-
-
171,387
171,934
93,796
-
-
93,796
100,536
17,627
-
-
17,627
17,705
-
-
-
-
5,504
71,290
-
-
71,290
68,105
13,895
-
-
13,895
54,838
367,995
-
-
367,995
418,622
4,682,478
140,229
3,652
4,826,3594,916,404
2,334,311
442,214
12,476
2,789,0012,455,681
7,016,789
582,443
16,128
7,615,3607,372,085
7,384,784
582,443
16,128
7,983,3557,790,707

£578,333 of 2023 expenditure related to restricted, £12,549 to endowment and £7,199,825 to unrestricted funds.

Page 33

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

9 ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

Raising funds
Charitable activities:
Contributions to
Archbishops' Council
Resourcing parish
ministry
10
ANALYSIS OF SUPPORT COSTS
Central administration
Governance
External audit
Registry and other legal costs
Synodical costs		 Raising funds
Charitable activities:
Contributions to
Archbishops' Council
Resourcing parish
ministry
10
ANALYSIS OF SUPPORT COSTS
Central administration
Governance
External audit
Registry and other legal costs
Synodical costs		 Activities
Undertaken
Directly
Grant
Funding of
Activities
Support
Costs
Total costs
2024
Total
costs
2023
£
£
£
£
£
81,209
-
-
81,209
86,540
-
367,995
-
367,995
418,622
6,323,007
160,602
1,131,751
7,615,360
7,372,085
6,404,216
528,597
1,131,751
8,064,564
7,877,247
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total costs
2024
Total costs
2023
£
£
£
£
£
790,043
173,598
12,476
976,117
918,536
22,850
-
-
22,850
23,280
120,460
-
3,562
124,112
59,586
8,672
-
-
8,672
24,150
942,025
173,598
16,128
1,131,751
1,025,552

Page 34

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

11 ANALYSIS OF GRANTS MADE

From unrestricted funds to support national
Church responsibilities
Contributions to Archbishops' Council
From unrestricted funds
Support for ordinands
Shepherds Dene Retreat House
Transforming Communities Together
Tyne to Tweed
Continuing Ministerial Development
grants
Ministry Experience Scheme grants
Other grants
From restricted funds
Support for ordinands
Partners fund
Other grants
Total Grants Made
Grant funding of activities in previous year
From unrestricted funds
Contributions to Archbishops' Council
Contributions to Diocesan-based charities
Other grants
From restricted funds
Other grants		 Number
Individuals
Institutions
Total costs
2024
£
£
£
5
-
367,995
367,995		 Number
Individuals
Institutions
Total costs
2024
£
£
£
5
-
367,995
367,995
7
65,635
-
65,635
5
-
7,760
7,760
40
21,278
-
21,278
1
8,750
-
8,750
23
-
32,246
32,246
76
95,663
40,006
135,669
7
10,733
-
10,733
2
-
8,000
8,000
3
-
6,200
6,200
12
10,733
14,200
24,933
93
106,396
422,201
528,597
2023
2023
No. of grants
£
6
418,622
68
96,446
14
84,737
88
599,805

Page 35

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

12
STAFF COSTS
Employee costs during the year were as follows:
Wages and salaries
National insurance contributions
Pension costs
The average number of persons employed during
the year:
Administration and financial management
Supporting mission & ministry
Property
Safeguarding
Newcastle St Thomas’, Diocesan Resource Church
The average number of persons employed during the year based on
full-time equivalents
Administration and financial management
Supporting mission & ministry
Property
Safeguarding
Newcastle St Thomas’, Diocesan Resource Church		 2024
2023
£
£
1,509,305
1,227,668
140,608
109,577
162,310
144,584
1,812,223
1,481,829
Number
Number
17
13
17
21
2
2
3
2
10
6
49
44
Number
Number
12
10
14
13
2
2
2
2
8
6
38
33

The Diocesan Resource Church excludes the 2 full-time office holders (Leader & Curate)

2024 2023
number number
The number of staff whose emoluments (including benefits in kind but
excluding pension contributions) amounted to more than £60,000
were as follows:
£60,000 - £70,000 - 1
£110,000- £120,000 1 -

Pension payments of £18,957 (2023:£15,367) were made for this employee

During the year settlement agreements were reached with 3 employees, resulting in payments in lieu of notice and non contractual payments totalling £136,888

Page 36

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

Stipends
National insurance contributions
Pension costs - current year		 2024
2023
£
£
2,797,623
2,843,875
243,668
243,381
633,473
716,454
3,674,764
3,803,710

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 2024 they were:

Diocesan Secretary and Company Secretary (to 01/08/2024) Shane Waddle MSc, FCIPP
Diocesan Secretary (from 07/10/2024) Chris Elder
Property Manager Ian D Beswick MSc, MRICS
Head of Finance Thomas Royle ACMA, CGMA

Remuneration, pensions and expenses for these employees amounted to £336,993 (2023: £232,650).

Trustees’ emoluments

No Trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses totalling £10,783 and this sum was paid out to 3 Trustees in respect of General Synod duties, duties as Archdeacon or Area Dean, and other duties as Trustees. (In 2023 £6,211 was paid out to Trustees).

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

DBF during the year:
Stipend
 Housing
The Right Revd M Wroe No Yes
The Venerable R A Wood Yes Yes
The Venerable Dr C A Sourbut Groves Yes Yes
The Revd Canon B Hurst Yes Yes
The Revd L Taylor-Kenyon Yes Yes

The funding of stipends for the Bishop of Newcastle, the Bishop of Berwick, the Dean and two Residentiary Canons at Newcastle Cathedral is a responsibility of the Church Commissioners. The NDBF is responsible for funding the stipends of all other licensed stipendiary clergy in the Diocese of Newcastle. Where eligible, the NDBF is responsible for the provision of housing for serving clergy, including the Bishop of Berwick. The NDBF is not responsible for the provision of the See House for the Bishop of Newcastle or for the provision of housing for the Dean and two Residentiary Canons at Newcastle Cathedral.

In 2024 the NDBF paid stipends to an average of 97.9 (2023: 99.8) clergy ministering in incumbent status posts, training curacy posts and the posts of archdeacon.

The stipends of the Bishop of Newcastle and the Bishop of Berwick were funded by the Church Commissioners and were in the range of £42,350- £51,910 (2023: range £38,050 - £48,972). The annual rate of stipend funded by the NDBF paid to Archdeacons in 2024 was in the range £39,508-£41,792 (2023: range £38,295 - £39,058) and other clergy who were Trustees were paid in the range £28,890-30,638 (2023: range £27,514 - £28,890).

Page 37

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

13 TRANSFER BETWEEN FUNDS

Analysis of transfers between funds

Analysis of transfers between funds
General Fund contribution from Resource Church
General Fund contribution from Rural Churches for
All
Grice Transfer
Pension surplus transfer		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
£
£
£
£
133,716
(133,716)
-
-
722,403
(722,403)
-
-
150,000
(150,000)
-
-
160,700
(160,700)
1,166,819(1,166,819)
-
-

14 TANGIBLE FIXED ASSETS

At cost or valuation
At 1 January 2024
Additions
Disposals
At 31 December 2024
Accumulated depreciation
At 1 January 2024
Charge for the year
Disposals
At 31 December 2024
Net book value at 31
December 2024
Net book value at 31 December
2023		 Unrestricted funds
Endowment funds
Property
Office
Equipment
Parsonages
Glebe
Property
TOTAL
£
£
£
£
£
3,302,201
167,155
15,185,888 1,797,04520,452,289
920,000
-
51,890
-
971,890
-
-
-
-
-
4,222,201
167,155 15,237,778 1,797,045 21,424,179





554,530
136,949
2,494,375
289,383
3,475,237
15,019
10,143
6,489
-
31,651
-
-
-
-
-
569,549
147,092
2,500,864
289,383
3,506,888
3,652,652
20,063 12,736,914 1,507,662 17,917,291
2,747,671
30,206
12,691,513 1,507,66216,977,052

Property

These properties were purchased using either unrestricted reserves, the Pastoral Account or the Stipends Capital and Glebe Fund. Included in this category is £429k (2023: £431k) which is attributable to the Bishop Bilbrough Fund, being part of the cost of the new Church House office accommodation paid for from the proceeds of the former Church House building. The balance of the cost of Church House is held within the Mary Wilkinson Legacy Fund. The other NDBF properties are included in the NDBF Houses Fund, an unrestricted fund.

Page 38

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

Parsonage houses

Rectories and vicarages (other than team vicarages) are vested in individual benefices. However, the NDBF is responsible for the maintenance and repair of all parsonage houses and carries substantially all the risks of ownership. Following a scheme for pastoral reorganisation the net proceeds of the sale of a parsonage house may be credited to the Diocesan Pastoral Account, which is recognised as an asset of the NDBF.

Glebe team vicarages

Team vicarages are included as glebe but they are not held as investments. The proceeds of any sale must be credited to the Stipends Capital Account.

15 FIXED ASSET INVESTMENTS

Within the United Kingdom
At 1 January 2024
Additions
Revaluation
At 31 December 2024
Cost at 31 December 2024		 Investment
property
Unlisted
investments
Listed
investments
TOTAL
£
£
£
£
1,706,537
-
3,945,359
5,651,896
-
-
-
-
-
-
90,303
90,303
1,706,537
-
4,035,662
5,742,199
1,450,042
-
1,631,095
3,081,137

Investment Properties

An estimate of the value of Glebe land and properties held as investments at the end of the year is £1,706,537. This figure has been provided by the Diocesan Property Manager, Mr I Beswick MRICS.

Listed investments

Listed investments are valued at bid market value at the year-end.

16 DEBTORS

Due within one year
Church Commissioners: sundry debtors
Loans for parish buildings
Other debtors
Pension surplus
Due after one year
Loans for parish buildings > 1 year		 2024
2023
£
£
4,065
4,065
25,500
25,500
105,649
158,851
133,300
-
268,514
188,416
-
-
268,514
188,416

Page 39

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

17
CURRENT ASSET INVESTMENTS
2024
2023
£
£
Deposit fund
2,560,695
3,669,546
18
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
£
£
Taxation and social security
30,433
51,791
Other creditors
19,681
45,603
Accruals and deferred income
250,735
328,340
Pension liabilities
16,705
-
Falling due within one year
317,554
425,734
Deferred Income
2024
2023
£
£
Deferred income at 1 January
239,083
217,272
Resources deferred during the year
(121,358)
36,960
Amounts released from previous periods
110,160
(15,149)
227,885
239,083
19 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
£
£
Deposit held on glebe property
5,044
5,044
Falling due after more than one year
5,044
5,044		 2024
2023
£
£
2,560,695
3,669,546
2024
2023
£
£
30,433
51,791
19,681
45,603
250,735
328,340
16,705
-
317,554
425,734
2024
2023
£
£
239,083
217,272
(121,358)
36,960
110,160
(15,149)
227,885
239,083
5,044
5,044

Page 40

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

20 SUMMARY OF FUND MOVEMENTS

Unrestricted Funds
General Unrestricted Fund
Designated Funds:
Mary Wilkinson Fund
DBF Houses Fund
Bishop Bilbrough Fund
Strategic Mission Fund
Building Grants and Loans
Fund
Allchurches Grant Fund
Clergy Expenses Fund
Lowest Income Communities
Fund
Lord Crewe Fund
Diocesan Communications
Network
Net Zero EV Charging
Restricted Funds
Partners Fund
New Church Building Fund
Diocesan Pastoral Fund
Archdeacons Fund
Training for Ordinands Fund
Botswana Donations Fund
Church House Wallsend Fund
Resourcing Ministerial
Education Fund
Resource Church Project Fund
Resource Church Giving Fund
Net Zero Capacity Building
Fund
Housing Demonstrator Fund
Pension surplus restricted
fund
Endowment Funds
Stipends Capital and Glebe
Fund
Parsonages Houses Fund
St Aidan's Fund		 Balance at
1 Jan 2024
Income
Expenditure
Transfers
Gains
and
losses
Balance at
31 Dec 2024
£
£
£
£
£
£






284,311
5,205,132
(5,863,013)
1,166,819
37,024
830,273
358,352
580
-
-
-
358,932
4,416,199
-
(15,019)
-
-
4,401,180
780,665
-
(587)
-
10,793
790,871
20,568
5,008
-
-
4,129
29,705
116,854
5,635
-
-
-
122,489
234,421
91,053
(89,838)
-
-
235,636
4,370
-
-
-
-
4,370
603,453
1,170,563
(1,186,501)
(4,000)
-
583,515
84,739
187,289
(227,067)
4,000
-
48,961
47,781
21,101
(8,981)
-
-
59,901
139,687
-
(74,987)
-
-
64,700
7,091,400
6,686,361
(7,465,993)
1,166,819
51,946
7,530,533
50,693
7,203
(8,156)
-
-
49,740
157,583
6,989
-
-
-
164,572
1,205,339
5,781
(1,004)
(722,403)
-
487,713
62,692
3,993
-
-
-
66,685
122,543
-
-
-
-
122,543
7,867
86
-
-
-
7,953
11,627
6,500
(9,071)
-
-
9,056
159,109
(144,479)
(11,200)
-
-
3,430
243,849
682,985
(537,472)
1,196
-
390,558
264,808
-
-
(284,912)
-
(20,104)
15,000
-
(15,000)
-
-
-
-
71,470
(540)
-
-
70,930
-
294,000
-
(160,700)
-
133,300
2,301,110
934,528
(582,443)
(1,166,819)
-
1,486,376
4,926,632
60,099
(5,111)
-
36,597
5,018,217
12,534,514
-
(11,017)
-
-
12,523,497
76,872
-
-
-
1,760
78,632
17,538,018
60,099
(16,128)
-
38,357
17,620,346
26,930,528
7,680,988
(8,064,564)
-
90,303
26,637,255

Page 41

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

21 SUMMARY OF ASSETS BY FUND

Unrestricted Income Funds:
General Unrestricted Fund
Designated Funds
Mary Wilkinson Fund
DBF Houses Fund
Bishop Bilbrough Fund
Strategic Mission Fund
Building Grants and Loans Fund
The Allchurches Grant Fund
Clergy Expenses Fund
Lowest Income Communities Fund
Lord Crewe Fund
Diocesan Communications
Network
Net Zero EV Charging
Restricted Income Funds:
Partners Fund
New Church Building Fund
Diocesan Pastoral Fund
Archdeacons Fund
Training for Ordinands Fund
Botswana Donations Fund
The Church House Wallsend Fund
Resourcing Ministerial Education
Fund
Resource Church Project Fund
Resource Church Giving Fund
Net Zero Capacity Building Fund
Housing Demonstrator Fund
Pension Surplus Restricted Fund
Endowment Funds:
Stipends Capital and Glebe Fund
Parsonages Houses Fund
St Aidan's Fund
Total Funds		 Fixed assets
Fixed assets
Current
Long
term
Tangible
Investments
assets
liabilities
Net assets
£
£
£
£
£
20,063
208,926
606,328
(5,044)
830,273





352,486
-
6,446
-
358,932
2,955,484
1,445,696
-
-
4,401,180
313,914
482,345
(5,388)
-
790,871
-
184,527
(154,822)
-
29,705
-
-
122,489
-
122,489
30,768
-
204,868
-
235,636
-
-
4,370
-
4,370
-
-
583,515
-
583,515
-
-
48,961
-
48,961
-
-
59,901
-
59,901
-
-
64,700
-
64,700
3,762,714
2,321,495
2,463,961
(5,044)
7,530,533
-
-
49,740
-
49,740
-
-
164,572
-
164,572
-
-
487,713
-
487,713
-
-
66,685
-
66,685
-
-
122,543
-
122,543
-
-
7,953
-
7,953
-
-
9,056
-
9,056
-
-
3,430
-
3,430
-
-
390,558
-
390,558
-
-
(20,104)
-
(20,104)
-
-
-
-
-
-
-
70,930
-
70,930
-
-
133,300
-
133,300
-
-
1,486,376
-
1,486,376
1,509,662
3,342,072
166,483
-
5,018,217
12,736,914
-
(213,417)
-
12,523,497
-
78,632
-
-
78,632
14,244,576
3,420,704
(44,934)
-
17,620,346
17,917,291
5,742,199
2,982,809
(5,044)
26,637,255

Page 42

THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

Summary of assets by fund (2023 comparatives)
Fixed assets Fixed assets Current Long term
Tangible Investments assets liabilities Net assets
£ £ £ £ £
Unrestricted Income Funds:
General Unrestricted Fund 11,223 117,600 160,532 (5,044) 284,311
Designated Funds
Mary Wilkinson Fund 352,486 - 5,866 - 358,352
DBF Houses Fund 2,088,692 1,500,000 827,507 - 4,416,199
Bishop Bilbrough Fund 313,914 471,551 (4,800) - 780,665
Strategic Mission Fund - 180,398 (159,830) - 20,568
Building Grants and Loans Fund - - 116,854 - 116,854
The Allchurches Grant Fund 30,768 - 203,653 - 234,421
Clergy Expenses Fund - - 4,370 - 4,370
Lowest Income Communities
Fund - - 603,453 - 603,453
Lord Crewe Fund - - 84,739 - 84,739
2,797,083 2,269,549 2,029,812 (5,044) 7,091,400
Restricted Income Funds:
Partners Fund - - 50,693 - 50,693
New Church Building Fund - - 157,583 - 157,583
Diocesan Pastoral Fund - - 1,205,339 - 1,205,339
Archdeacons Fund - - 62,692 - 62,692
Training for Ordinands Fund - - 122,543 - 122,543
Botswana Donations Fund - - 7,867 - 7,867
The Church House Wallsend Fund - - 11,627 - 11,627
Resourcing Ministerial Education
Fund - - 159,109 - 159,109
Resource Church Project Fund - - 243,849 - 243,849
Resource Church Giving Fund - - 264,808 - 264,808
Rural Churches for Everyone Fund - - - - -
Net Zero Capacity Building Fund - - 15,000 - 15,000
- - 2,301,110 - 2,301,110
Endowment Funds:
Stipends Capital and Glebe Fund 1,488,322 3,305,475 132,835 - 4,926,632
Parsonages Houses Fund 12,691,647 - (157,133) - 12,534,514
St Aidan's Fund - 76,872 - - 76,872
14,179,969 3,382,347 (24,298) - 17,538,018
Total Funds 16,977,052 5,651,896 4,306,624 (5,044) 26,930,528

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

22 DESCRIPTION OF FUNDS

The General or Unrestricted Fund is available for any purpose within the objects of the Board. It is principally used for payment of stipends, national insurance, pension contributions and housing costs of clergy and licensed lay-workers in parish ministry. It also provides the assets and liquidity for the NDBF to carry out its objectives, including statutory compliance and administration of funds.

The Mary Wilkinson Fund is a bequest fund which can be used for general purposes. It has been used to provide part of the costs for buying, modifying and fitting out Church House. In 2015 the fund was used to purchase the Church House caretaker’s bungalow from the Newcastle Diocesan Education Board.

The DBF Houses Fund is a designated fund for holding those houses which are neither parsonages nor team vicarages.

The Bishop Bilbrough Fund is a bequest which can be used for general purposes. It has been used to provide part of the costs for buying, modifying and fitting out Church House.

The Strategic Mission Fund was set up as a designated fund in order that the NDBF could set aside funds to bid for matched project funding from the National Church.

The Building Grants and Loans Fund is a designated fund to make loans and grants to parishes to enable them to carry out work on their existing church buildings.

The Allchurches Grant Fund is a designated fund which uses grant income from Benefact Trust to support and resource the NDBF’s mission and ministry activity expenditure.

The Clergy Expenses Fund is a designated fund set up to help ensure that clergy can be reimbursed the level of expenses they are entitled to, particularly those working in more deprived areas.

The Lowest Income Communities Fund is a designated fund representing funding from the National Church to help resource ministry in the most deprived areas of the Diocese.

The Lord Crewe Fund is a designated fund representing funding from the Lord Crewe Charity awarded to the Board of Finance for agreed workstreams.

The Diocesan communications network (Diocesan and Cathedrals Digital Community) (DC2) is an unincorporated association for and run by dioceses and cathedrals of the Church of England. It allows dioceses and cathedrals to work together to create, evolve and develop a common web platform by sharing knowledge and resources, rather than each member commissioning the creation of their own website. Every year, each diocese and cathedral who are Members of the community pay a financial contribution which collectively funds continuing development of our websites by the web developer Church Edit. This means functionality can be scoped and built once rather than multiple times. As a goodwill gesture, NDBF has agreed to hold and manage DC2’s funds. The association is democratic with each Member (diocese or cathedral) nominating a Representative to vote on their behalf, and the association conducts itself in accordance with their agreed set of rules.

Net zero EV charging - NDBF designated part of the proceeds from the sale of a NDBF property to fund the installation of electric vehicle (EV) charging points at vicarages and other property held for clergy. The installation rollout is underway.

The Partners Fund is a restricted fund used for making relatively small grants to community-based projects.

The New Church Building Fund is a restricted fund used, but not frequently, for making grants and loans to parishes to enable them to acquire new church buildings.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

The Diocesan Pastoral Fund includes the proceeds of redundant churches and parsonages. The purposes for which the account may be used are laid down in Section 78 of the Pastoral Measure 1983.

The Archdeacons’ Fund is a restricted fund which is spent at the discretion of the Archdeacons to help clergy who experience financial difficulties.

The Training for Ordinands Fund , formerly the McFarlane Bequest Fund, is a restricted fund used to help provide for clergy training. A sum in excess of £100,000 was left to the NDBF in 2015. In 2019 a donation of £25,000 was received from Mrs Shirley Chamney.

The Botswana Fund receives donations from parishes and individuals which are used to assist projects within our partner Diocese of Botswana.

The Church House Wallsend Fund was set up when the Wallsend Church House building was recognised as a glebe asset in the NDBF accounts. At the same time, accumulated rental income was passed across to NDBF from Wallsend Parish. Rental income is paid into the fund and expenditure relating to the Wallsend property is charged against the fund.

The Resourcing Ministerial Education Fund receives Block Grants from the Archbishops’ Council for ministerial education training for the ordinands sponsored by the Diocese of Newcastle. The Grants may only be expended on initial ministerial education pathways which have been approved by the Archbishops’ Council’s Ministry Division at accredited Theological Education Institutions (TEIs).

The Resource Church Project Fund holds the income and expenditure of the Resource Church project.

The Resource Church Giving Fund receives donations which are contributions to St Thomas’ Newcastle, the Diocesan Resource Church. Funds will be transferred to the legal body for St Thomas’ once the legal body is established.

Net zero capacity building fund - The National Church awarded NDBF an amount of funding to be used on developing a net zero carbon action plan. The award was made in 2023 and expended in 2024 when the plan was written. The plan was adopted by the Diocesan Synod on 11th May 2024.

The Rural Churches for Everyone Fund receives grant funding for a fixed-term project supported by Heritage Lottery Funding.

The Stipends Capital and Glebe Fund is governed by the Diocesan Stipends Measure 1953. The income of this endowment fund is used to fund clergy stipends and, since 1993, capital can be applied for improvements to parsonage houses.

The Parsonage Houses Fund is an endowment fund. The balance represents the book value of the benefice houses (parsonages) in the Diocese. The fund also holds a cash balance, the proceeds from the sale of a parsonage house, and a liability which relates to the deficit on the clergy pension scheme.

The St Aidan’s Fund is an endowment fund. The balance is held as units in the Central Board of Finance Investment Fund. Dividend income is paid into the unrestricted fund and is used for ordination training.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

23 PENSIONS

Clergy

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

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 multi-employer 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 are contributions payable towards benefits and expenses accrued in that year, which were £633,473 in 2024 (2023: £716,454), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2024, following the valuation results being agreed, the deficit contributions paid were £0 (2023: £0).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.

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

Lay staff

NDBF (DBS) participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

  3. a. a deferred annuity section known as Pension Builder Classic, and, b. a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff which is now closed to future accrual.

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. This does not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2024: £nil, 2023: £nil) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £nil for 2024 (2023: £nil).

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

A valuation of DBS is carried out once every three years. At the most recent valuation at 31 December 2022 there was a surplus of £73.6m.

The next actuarial valuation is due at 31 December 2025.

Since 31 December 2023, the Board has entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF.

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

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 are the contributions payable 2024: £161k (2023: £144k).

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THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024

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 2025, the Board chose to grant a discretionary bonus of 6.7% 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 2006 service so that the pension increase was 2.7% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2024. There is no requirement for deficit payments at the current time.

The next valuation is due as at 31 December 2025.

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

24 CONTINGENT ASSET

During the prior year, the Church of England Pension Board indicated that they intended to close the Church Workers Defined Benefit Scheme to future accrual. This led to the NDBF taking the decision in December 2023 to transfer all employees who were members of this scheme to the Pension Builder Classic scheme as of 31 January 2024. The Pension Board indicated that the NDBF’s section of the Church Workers Defined Benefit Scheme was in an asset position on closure. During 2024, the Pension Board confirmed usable assets attributed to the NDBF of £294k, which have been recognised as income in the year and shown as debtors to be drawn down against future pension liabilities. There is a possibility of further assets being attributed to NDBF once final scheme liabilities have been settled, but this amount cannot yet be accurately quantified.

25 RELATED PARY TRANSACTIONS

During the year NDBF received £32,816 (2023:£181,016) from Newcastle Diocesan Society (NDS), a charity connected by virtue of common trustees. The grants were from various funds held by NDS for the benefit of NDBF and were to assist with payment of stipends and to cover certain administrative costs.

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