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|
Page 2
**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._
Page 3
**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:
- a Directors Report of a charitable company,
- a Strategic Report under the Companies Act 2006; and
- a Trustees Annual Report under the Charities Act 2011.
## **LEGAL OBJECTS**
The 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:
- i. the management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976; and
- ii. the repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972.
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.
Page 4
**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.
Page 5
**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:
- replace unsuitable properties;
- accommodate the changing geographical deployment of clergy within the Diocese; and
- realise development potential in some properties, thereby using our resources more effectively for the ministry of the Church.
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
Page 6
**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:
- **The Archbishops’ Council** to which the NDBF pays a donation based on an apportionment system agreed by the Church of England’s General Synod for funding national training of ordinands and the activities of the various national boards and councils, as well as the costs of the General Synod. In 2024, the NDBF paid £368k to the Archbishops’ Council to help to fund these costs.
- **The Church Commissioners** , from which the NDBF receives grants and which acts on behalf of clergy with HM Revenue and Customs. The NDBF reimburses the Commissioners for the stipends of those clergy office holders in stipendiary appointments in the Diocese of Newcastle.
- **The Church of England Pensions Board** , to which the NDBF pays retirement benefit contributions for stipendiary clergy and employees. The Pensions Board also offers schemes to provide housing for clergy in retirement **.**
Page 7
**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.
Page 8
**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.
Page 9
**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.
Page 10
**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:
- Ethical investment: this includes ensuring that investments are held in companies which have high standards of corporate governance and act in a responsible way towards stakeholders.
- Long-term responsibilities: the Trustees are aware of their long-term responsibilities in respect of endowed funds and as a result follow a correspondingly prudent approach to investment decisions.
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.
Page 11
**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.
Page 12
**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:
- Initiating proposals for action by the Synod and advising it on matters of policy;
- Transacting business of the Synod when it is not in session subject to the directions of the Synod and in accordance with Synod Standing Orders;
- Acting as the Trustees of the NDBF;
- Planning the business of the Synod, preparing the agenda for its session, and circulating to members information about matters for discussion;
- Advising the Bishop on any matters she may refer to the committee;
- Initiating consideration of any restructuring of Synod Committees and Departments which may appear necessary and for the establishment of ad hoc review groups, their terms of reference and membership;
- Carrying out such other functions as the Synod delegates to it;
- Appointing members to committees and representatives to external bodies, subject to the direction of the Synod.
The Trustees are assisted in their work by 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.
Page 13
**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.
Page 14
**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:
- Select suitable accounting policies and apply them consistently;
- Observe methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation.
The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the 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:
- a) there is no relevant audit information of which the charitable company’s auditors are unaware; and
- b) we have taken all the steps that we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.
## **APPOINTMENT OF AUDITORS**
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.
Page 15
**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|
Page 16
**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**
Page 17
**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:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remunerations specified by law not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees' responsibilities statement, 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 26,637,255**26,930,528|
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.
- i. **Parish Share** is recognised as income of the year in respect of which it is receivable.
- ii. **Rent** receivable is recognised as income in the period with respect to which it relates.
iii. **Interest and dividends** are recognised as income when receivable.
- iv. **Grants** received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in deferred income within creditors to be carried forward to the following year.
- v. **Parochial fees** are recognised as income of the year to which they relate.
- vi. **Donations** other than grants are recognised when receivable **.**
- vii. **Gains on disposal of fixed assets for the NDBF’s own use** (i.e. non-investment assets) are accounted for as other incoming resources. Losses on disposal of such assets are accounted for as other expenditure.
- viii. **Stipends fund income.** The Stipends Fund Capital account is governed by the Diocesan Stipends’ Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting.
## **b) Expenditure**
Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category.
- i. **Costs of raising funds** are constrained to costs relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.
- ii. **Charitable expenditure** is analysed between contributions to the Archbishops’ Council and expenditure on resourcing mission and ministry in the parishes of the Diocese.
Page 25
**THE NEWCASTLE DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2024**
- iii. **Grants payable** are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the NDBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
- iv. **Support costs** consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.
- v. **Pension contributions** . The NDBF's staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pensions Scheme (see note 23). The pension costs charged as resources expended represent the NDBF's contributions payable in respect of the accounting period, in accordance with FRS 102. Deficit funding for the pension schemes to which NDBF participates is accrued at current value within creditors.
## **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.
- **Unrestricted funds** are the NDBF’s corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the NDBF. There are two types of unrestricted funds:
- **General funds** which the NDBF intends to use for the general purposes of the NDBF; and
- **Designated funds** set aside out of unrestricted funds by the NDBF for a purpose specified by the Trustees.
- **Restricted funds** are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.
- **Endowment funds** are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the NDBF (Stipends Fund Capital, Parsonage Houses Fund but not the St Aidan’s Fund), there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.
## **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
-
-**3,866,984**3,881,983
(87,674)
-
-
**(87,674)**
(56,473)|
||3,779,310
-
-**3,779,310**3,825,510
10,723
-
-
**10,723**
43,013|
||**3,790,033**
**-**
**- 3,790,033**3,868,523|
## **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
-
-**1,170,562**1,068,283
-
-
-
**-**
183,501|
||**1,170,562**
**-**
**- 1,170,562**1,251,784|
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
-
-**499,705**387,156
25,350
-
-
**25,350**
27,830
-
-
-
**-**
22,700|
||**525,055**
**-**
**- 525,055**437,686|
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
-
60,099**113,969**162,617
187,191
19,818
-**207,009**200,992
20,000
6,500
-
**26,500**
53,700|
||**261,061**
**26,318**
**60,099 347,478**417,309|
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
-
**3,041,291**3,087,255
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
**4,826,359**4,916,404
Support for parish
ministry
2,334,311
442,214
12,476
**2,789,001**2,455,681
**7,016,789**
**582,443**
**16,128**
**7,615,360**7,372,085
**7,384,784**
**582,443**
**16,128**
**7,983,355**7,790,707|**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
**4,826,359**4,916,404
2,334,311
442,214
12,476
**2,789,001**2,455,681|
|||**7,016,789**
**582,443**
**16,128**
**7,615,360**7,372,085|
|||**7,384,784**
**582,443**
**16,128**
**7,983,355**7,790,707|
£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 1,797,045**20,452,289**
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 1,507,662**16,977,052**|
## **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**|
Page 43
**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.
Page 44
**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.
- **Housing Demonstrator Fund** The housing demonstrator grant funds energy efficiency and decarbonisation works adopting a whole house approach. It considers things such as ventilation and air tightness, fabric thermal efficiency and fossil fuel free heating systems. The funds are to be used at The Rectory, Bellingham and form part of our plan to be net zero carbon.
**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.
Page 45
**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:
- An average discount rate of 2.7% p.a.;
- RPI inflation of 3.6% p.a. (and pension increases consistent with this);
- CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards;
- Increase in pensionable stipends in line with CPIH;
- Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates from 2013 in line with the CMI2020 extended model with a long-term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%).
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;
- 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.
Page 46
**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).
Page 47
**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.
Page 48