OpenCharities

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

2020-12-31-accounts

The Blackburn Diocesan Board of Finance Limited

Annual report and financial statements

Company limited by guarantee (no 225457) Registered charity (no 247647) Date: 31 December 2020

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Contents

VISION STATEMENT .............................................................................................................................. 2 LEGAL OBJECTS ................................................................................................................................... 3 STRATEGIC REPORT ............................................................................................................................ 3 Strategic Aims And Objectives For The Year ....................................................................................... 3 Activities And Achievements In The Year ............................................................................................. 4 Future Plans .......................................................................................................................................... 6 Financial Review ................................................................................................................................... 7 Principal Risks And Uncertainties ......................................................................................................... 9 STRUCTURE, GOVERNANCE AND MANAGEMENT ......................................................................... 10 Summary Information About The Structure Of The Church Of England ............................................ 10 Organisational Structure ..................................................................................................................... 11 DIRECTORS’ RESPONSIBILITIES ...................................................................................................... 12 Statement Of Disclosure To The Auditors .......................................................................................... 13 Appointment Of Auditor ...................................................................................................................... 13 ADMINISTRATIVE DETAILS ................................................................................................................ 14 Attendance Of Directors At Meetings In 2020 .................................................................................... 15 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF FINANCE LIMITED ........................................................................................................... 16 STATEMENT OF FINANCIAL ACTIVITIES .......................................................................................... 19 INCOME AND EXPENDITURE ACCOUNT .......................................................................................... 20 BALANCE SHEET ................................................................................................................................. 21 CASH FLOW STATEMENT .................................................................................................................. 22 NOTES TO THE FINANCIAL STATEMENTS....................................................................................... 23

Page 1

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

VISION STATEMENT

Vision 2026 is an agenda for growth and change to see ‘Healthy Churches Transforming Communities’ across the Diocese of Blackburn in our centenary year of 2026.

The Vision was launched in 2015 when the Diocese of Blackburn made a bold strategic decision to change and to grow through the priorities of: • Making Disciples for Jesus Christ • Being Witnesses for Jesus Christ • Growing Leaders for Jesus Christ • Prioritising Work Among Children, Young People and Schools.

Over the course of 2020 the Diocese engaged in a ‘Vision Update’ through which we sought to identify what is going well and where the challenges are as we seek to realise our Vision of seeing:‘Healthy Churches Transforming Communities’

Our updated Vision 2026 building blocks are:-

Making disciples of Jesus Christ

Being witnesses to Jesus Christ

Growing leaders for Jesus Christ

Inspiring children and young people

The Diocesan Vision Prayer

Heavenly Father, we embrace Your call for us to make disciples, to be witnesses, to grow leaders and to inspire children and young people. Give us eyes to see Your vision, ears to hear the prompting of Your Spirit and courage to follow in the footsteps of your Son, our Lord and Saviour Jesus Christ. Amen

Page 2

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

The Directors of the Blackburn Diocesan Board of Finance Limited (BDBF), who are the Trustees for the purpose of charity law, present their annual report, together with the audited financial statements, for the year ended 31 December 2020.

The directors and 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 requirement for:

LEGAL OBJECTS

The BDBF’s principal objective is to promote, assist and advance the work of the of the Church of England, primarily but not exclusively in the Diocese of Blackburn, by acting as the financial executive of the Blackburn Diocesan Synod.

The BDBF has the following statutory functions:

STRATEGIC REPORT

STRATEGIC AIMS AND OBJECTIVES FOR THE YEAR

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

In March 2015, the Diocesan Synod agreed the vision statement and strategic priorities for the following ten years.

We will continue to have specific focus for the next two years on the following contexts:

The Directors are aware of the Charity Commission's published guidance on the public benefit requirement in general and, more particularly, in ‘The Advancement of Religion for the Public Benefit' and have had regard to it in their administration of the BDBF.

The Directors believe that, by carrying out these objectives and in promoting the work of the Church of England in the Diocese of Blackburn, the BDBF helps to promote the whole mission of the Church (pastoral, evangelistic, social and ecumenical) more effectively, both in the Diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by:

Page 3

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

ACTIVITIES AND ACHIEVEMENTS IN THE YEAR The key activities may be summarised as:

In 2020 we planned to support the diocesan commitment to our 4 main areas of focus Making Disciples, Being Witnesses, Growing Leaders and Inspiring Children and Young people for Jesus Christ; however, the effect of Covid 19 impacted significantly on both parishes and the BDBF with major national and local restrictions for most of the year. This resulted in churches not operating as normal and for periods being closed and the DBF office and Whalley Abbey also closed with many staff remotely working and some being furloughed.

We established a pro-active Covid Task Group to support parishes with information, advice, encouragement and used the weekly and sometimes twice weekly update to provided resources and be a signpost to ways in which churches can continue to Make Disciples, Be Witnesses, Grow Leaders and Inspire Children and Young people for Jesus Christ in a challenging unanticipated context. The Task Group continues, albeit on a reduced basis in 2021.

We also established a Standing Committee of the BDBF which met fortnightly to support the Board of Directors and Trustees with decisions that needed prompt action and planning mainly relating to maintaining financial stability. To further support parishes the Standing Committee established a Resilience Group who contacted over 80 parishes to discuss their own financial stability during the pandemic, work which continues in 2021.

In relation to our main objectives of:

Making Disciples of Jesus Christ we:

Being Witnesses to Jesus Christ we:

Page 4

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Growing Leaders for Jesus Christ we:

Inspiring Children and Young people for Jesus Christ

In 2020 we decided to establish this objective explicitly rather than being a thread that ran through the Making Disciples, Being Witnesses and Growing Leaders by

This is delivered in partnership with the Blackburn Diocesan Board of Education through our parishes, via a grant to the Diocesan Board of Education. Full details of the activities carried out are contained within Blackburn Diocesan Board of Education Trustee Report.

During 2020 the BDBF also

The actions outlined above were enabled through a range of administrative and legal functions ensuring that the priorities identified within Vision 2026 were facilitated whilst maintaining good governance.

Personnel

The Directors are thankful for everyone who contributes to the life of the Diocese and to the parishes for their continuing financial support. Given the extremely challenging circumstances arising from the pandemic, the directors would like to express particular thanks to all the staff serving the BDBF, to our clergy for their leadership during 2020 and to the PCC's for their ongoing commitment this last year. The Directors are thankful to God, for those parishes which continued to support ministry by contributing their parish share, many of whom made it a priority in 2020.

Page 5

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Related parties

The BDBF must comply with Measures passed by the General Synod of the Church of England. It pays a donation based on an apportionment system for funding national training of ordinands and the activities of the various national boards and councils, as well as General Synod. The BDBF receives a grant from funds managed by the Church Commissioners. The BDBF pays for clergy stipends through the Church Commissioners. The stipends of the Diocesan and Suffragan Bishops are borne by the Church Commissioners.

The BDBF pays retirement contributions for stipendiary clergy and some employees to the Church of England Pensions Board.

The BDBF is required by Measure to be custodian trustee in relation to PCC property, but the Company has no control over PCCs, which are independent charities. The accounts of PCCs and deaneries do not form part of these financial statements.

PCCs can influence decision-making within the BDBF and at Diocesan Synod level through representations to those bodies and through the input of Deanery Synods.

FUTURE PLANS

We will complete and launch the update of Vision 2026 and seek to apply for further National Church Strategic Development Funding and Strategic Capacity Funding and we will again seek Strategic Ministry Funding to be able to support additional Curate training opportunities. We will apply for Giving Funding in Partnership to seek to appoint an additional person to the work for encouraging Christian Stewardship and Giving in the parishes of the diocese.

We will also complete the process for the 2nd Past Case Review including sending the Independent Report to the National Church and considering all recommendations made.

We will continue to support the Diocesan commitment to Making Disciples of Jesus Christ by equipping people for whole life discipleship, by encouraging initiatives in prayer, bible reading and spirituality; resourcing people and churches through the work of Christian stewardship via the ‘in house’ course entitled Generosity, Gift and Grace. We also engaged with the national initiative to encourage Stewardship and began to join the Parish Giving Scheme for donations and promote ‘contactless’ giving.

Page 6

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

We will continue to support the Diocesan commitment to Being Witnesses to Jesus Christ by developing and increasing the range of resources to support outreach and evangelism in the local church, resourcing work on outer estates, working towards our 2026 goal of 10 Strategic church plants and 200 new congregations. We will actively be supporting social responsibility through advice, training, resources and local projects; actively encouraging and resourcing Church Planting and Fresh Expressions of Church. This will be underpinned by the continuing development of effective internal and external communication through a wide variety of media and the provision of communication resources and training.

We intend to support the Diocesan commitment to Growing Leaders for Jesus Christ by further developing ministerial training and resources, with emphasis on creating opportunities for ministry and training in challenging contexts; actively promoting vocations to a breadth of ministries and encouraging younger vocations; offering support and resources to those involved in leadership roles and facilitating effective and efficient ministry in local contexts. We will continue to support and develop the MPower scheme for Blackpool.

We intend to support the Diocesan commitment to Inspiring Children and Young people for Jesus Christ continuing in partnership with the Blackburn Diocesan Board of Education. Full details of the future activities are contained within this charity’s Trustees report.

A funding request will be made to the national church for two more resource churches in Blackburn and Blackpool. The Blackburn church will have an emphasis of supporting young people.

We will continue to support parishes through Treasurer, Church Warden and Clergy training events during the year.

FINANCIAL REVIEW Financial performance

The financial performance of the Charity in 2020 was considered satisfactory.

Parish share, the money given by Parishes to the BDBF to fund the mission and ministry of the Diocese, was again the principal sources of funding in 2020. This decreased by £0.43m to £7.16m (2019: £7.59m) .The Directors thank parishes for their contributions during the year, and especially to those parishes able to pay in full and those that make their parish share payments by monthly instalments.

The provision for outstanding parish share at the year end is £7.56m (2019: £6.61m) .

Total income (including parish share) before revaluation adjustments totalled £12.85m (2019 : £13.25m) , a decrease of £0.40m. Included in these figures are gains on the disposal of fixed assets of £0.34m (2019: £0.80m) .

Expenditure amounted to £11.62m (2019: £12.56m) , a decrease of £0.94m. Included in these figures are losses on disposal of fixed assets of £24,000 (2019: £70,000) and loss on sale of investment land of £95,000 (2019: £8,000).

The Statement of Financial Activities (SOFA) for the year shows net income of £1.23m (2019: £0.69m ) before net gains and losses on the revaluation of investments. This is an increase of £0.55m on the previous year.

After revaluation adjustments, the net movement in total funds amounted to a £2.37m increase (2019: £6.04m) , which results in a total fund balance of £69.26m (2019: £66.89m) . The net movement in unrestricted funds is £1.29m (2019: £2.84m) , which results in a general fund balance of £8.50m (2019: £7.21m) and designated fund balance of £2.63m (2019: 2.54m)

Balance Sheet Position

While the net assets on the balance sheet total £69.26m ( 2019: £66.89m ), included in this total are freehold land and buildings which are primarily used for ministry totalling £40.41m ( 2019: £39.45m ). Much of the remainder is held in restricted or endowment funds. The defined benefit pension deficit of £0.69m ( 2019: £1.17m) is shown against general funds.

Page 7

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Significant Property Transactions

During the year we purchased three parsonages and four curate and associate vicar houses totalling £1.78m. Sale proceeds were received for five curate houses of £1.03m, no parsonages were sold during the year.

Investment Performance

The Charity does not receive its donations evenly throughout the year. Some donations or funding grants received are held for a period prior to them being required for expenditure. The charity utilises NatWest reserve accounts and CCLA for cash investments.

The Board requests a member of CCLA to annually attend a meeting of the Investment Committee to update them on the Board’s investment position. The Investment Committee meets at least four times a year to review policy and performance. The Board invests in the CCLA Deposit, Investment and Property Funds which again performed satisfactorily over the year.

The total value of investments and deposits (excluding cash and investment property) at 31 December 2020 was £25.20m ( 2019: £23.51m) and the return on investment was 2.8% (2019: 3.1%). (Income divided by average capital value).

The total value of investment property at 31 December 2020 was £1.83m ( 2019: £2.80m) and the return on investment was 1.5% (2019: 1.2%). (Net rental income divided by average capital value).

Sales proceeds received from the sale of glebe land amounted to £1.02m (2019: £0.41m) which will be used to purchase curate houses in 2021.

Investment Policies

The BDBF’s investment policies are based on two key policies:

Ethical investment – the BDBF seeks to pursue an investment policy consistent with the values of the Christian faith. This is achieved by investing in CCLA who follow the policies of the Church of England’s ethical investment advisory group which are kept under review by the Investment Committee.

Long-term responsibilities – the Directors are aware of their long-term responsibilities in respect of endowed funds and as a result follow a correspondingly prudent approach to investment decisions.

Investment policy for long-term funds is aimed primarily at generating a sustainable income with due regard to the need for preservation of capital value and the possible need to realise investments to meet operational needs. The glebe investments are held for the purpose of raising income to achieve the maximum contribution possible towards clergy stipends on an ongoing basis. Unrestricted and restricted funds are invested to balance income, liquidity and the reimbursement of capital.

Reserves Policy

The Directors have reviewed the charity’s needs for reserves in line with the guidance issued by the Charity Commission. The BDBF has considerable responsibilities, including the remuneration and housing of on average 176 parochial stipendiary clergy and is reliant on the contributions from the parishes of the Diocese. The BDBF aims to maintain a level of free reserves for income risk of 4% of three years forecast budgeted parish share, DBF fees and rental income and at least three months’ Parish Share budgeted expenditure as working capital. This will be held within the unrestricted funds (excluding fixed assets and clergy pension deficit). This is considered sufficient to cover short-term cash outflows, cushion non-receipt of Parish Share and any reduction of income from DBF Fees and rental income. The level of free reserves required for this policy is £4.70m.

This policy has proved advantageous in helping the BDBF manage the current Covid-19 pandemic. This policy is reviewed annually considering the future plans of the BDBF in its setting.

The level of free reserves at 31 December 2020 was £6.83m; this is in excess of the policy by £2.13m. This excess will to be used to fund the budgeted deficits for 2021 and 2022. These deficits consider the financial impact of the Covid-19 pandemic on the charity. The Directors are confident in the steps taken to ensure the future going concern of the organisation.

There are a number of designated funds totalling £2.63m and the material ones are listed in note 24 on pages 41 and 42. These funds are, in the main, held to fund future opportunities for the BDBF. They are reviewed regularly for the appropriateness and levels.

Page 8

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

The BDBF also administers a number of restricted and endowment funds that are held in specific trusts under charity law and are not available for general purposes. As at 31 December 2020 restricted funds totalled £11.07m and endowment funds totalled £47.07m. A description of each reserve, together with the intended use of the fund is set out in notes 25 and 26 of the financial statements on pages 42 to 44.

Grant making policy

Grants are made to the National Church to cover a proportion of its central costs and the cost of training for ministry (see note 10 to the financial statements). Grants are paid to other connected charities and to other charitable projects which appear to the Board to support the furtherance of the BDBF’s objectives (see note 17 to the financial statements).

Fundraising

Most of the funds raised by the BDBF are from other charities. We provide support and advice to parishes with their fundraising and raise some funds for other charities as part of the Bishop’s Harvest appeal or from the congregation at Visitations. At Ordination services funds raised for the BDBF are restricted to support those undergoing ordination training. We encourage on line giving by the use of give.net. There is minimal fundraising from the public by the BDBF and this is normally at church services, not by direct marketing or using external fundraisers. We have not received any complaints from the public in relation to our fundraising activities.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors of the charitable company have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

The Directors will continue to develop the risk management process to assess and document business risks and implement risk management strategies. This involves assessing the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. This process draws on ongoing consideration of business risk, which already forms a significant aspect of the Directors’ duties, scrutiny by the Audit, Risk and Governance Committee (ARG) and of the annual management review by the Auditors, to discuss financial and internal control issues. There is no internal audit function as it is not considered an efficient use of the resources of the charity. The risk register is reviewed on a six-monthly basis by the ARG and material changes are notified to the directors.

Key Risks

The key risks, which may impact on the charitable company, include:

  1. A decline in the payment of Parish Share – the risk is that the BDBF is unable to meet its objectives due to financial constraints. Existing Controls

  2. regular monitoring and meetings with those parishes who need help to meeting their assessment

  3. provision for the shortfall built into the budget

  4. pastoral reorganisation to ensure affordability

  5. focus on stewardship

  6. free reserves policy

  7. A continuing reduction in regular weekly attendance – the risk is that parishes will become increasingly unable to pay parish share due to a reduced number of parishoners contributing to their finances; the BDBF is therefore unable to meet its objectives due to financial constraints. A key aim of Vision 2026 is to to grow the number of people regularly attending their parish church. Teaching with an emphasis on Christian Discipleship was given in 2019. The new Vision Co-ordinator has assessed the impact of the Vision during 2020 and has developed further strategic initiatives for growth to occur.

Page 9

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

  1. Safeguarding, impact of historic cases – the BDBF follows National Guidelines and during 2020 has undertaken a further past case review.

  2. Declining stipendiary clergy numbers nationally means that the BDBF may be unable to resource the local parish - with the Director of Vocations in post the numbers exploring vocations has increased significantly. Curate numbers are being increased with National Church providing some support funding for those above the normal numbers for the BDBF. The Diocese has been attractive for recruitment of clergy from outside the area for the past few years, which further mitigates the situation.

Covid 19 Impact on risk and risk management

The key risks above are the possibility of a reduction in parish share income and reduction in regular weekly attenders in parishes. The effect of Covid 19 has caused both the reduction in parish share contributions and people attending church with the closure of churches for a period and restricted numbers when open. These effects were mitigated in 2020 with the receipt of a sustainability grant of £1.1m from national church. The Board have sufficient funds within free reserves and the sale of housing stock no longer required to mitigate these risks.

STRUCTURE, GOVERNANCE AND MANAGEMENT

SUMMARY INFORMATION ABOUT THE STRUCTURE OF THE CHURCH OF ENGLAND The Church of England is the established church with HM The Queen as the Supreme Governor.

It is organised into two provinces each led by an archbishop (Canterbury for the Southern Province and York for the Northern) and 42 dioceses. Each diocese is a See under the care of a Bishop who is charged with the cure of souls of all the people within that geographical area.

A diocese is divided into archdeaconries, deaneries, benefices and parishes. Benefices may comprise single or multiple parishes and are overseen by a parish priest (usually called a vicar, rector or priestin-charge). The parish priests are responsible for the ‘cure of souls’ in their parish.

The Church of England is governed nationally by General Synod as its legislative and deliberative body. It comprises ex-officio and elected representatives from each diocese and it agrees and lays before Parliament measures for the governance of the church’s affairs, which, if enacted by Parliament, have the force of statute law. Blackburn Diocese currently has 5 elected clergy members and 6 elected lay members of General Synod. They were elected in 2015 for a period of five years.

In addition to the General Synod, the Archbishops’ Council has a coordinating role for the 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 some lay workers.

Within each diocese, overall leadership lies with the Diocesan Bishop, who exercises that leadership as Bishop in the Diocesan Synod which is the statutory governing body of the Diocese.

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.

The Diocese of Blackburn was created in 1926. It has an area of 988 square miles and encompasses Lancashire with a few parishes in Wigan Metropolitan Borough. The overall population is approximately 1.3 million within urban and rural areas.

The Diocese of Blackburn has two archdeaconries (Blackburn and Lancaster), each the responsibility of an archdeacon. Each archdeaconry has seven deaneries with a number of benefices/parishes grouped geographically. An area dean has oversight of the deanery and each deanery has its own synod. Within each parish there is a body called the parochial church council which is made up of parish priest as chair, the churchwardens, curate and Readers if applicable, and a number of elected members. Each parochial church council is a separate charity.

The Cathedral is the mother church of the Diocese, an ecclesiastical corporation until it is certified by the Church Commissioners under the Cathedrals Measure 2021 as a charity. The Cathedral is separate from the BDBF. Copies of its trustees’ report and financial statements may be obtained from the Cathedral Offices, Cathedral Close, Blackburn BB1 5AA.

Page 10

Annual Report and Financial Statements For the year ended 31 December 2020

The Blackburn Diocesan Board of Finance Limited

ORGANISATIONAL STRUCTURE

The BDBF, was formed to manage the financial affairs and hold the assets of the Diocese. It was incorporated on 29 October 1927 as a charitable company limited by membership guarantees (No 225457) and its governing documents are the Memorandum and Articles of Association. The BDBF is registered with the Charity Commission (No 247647). The Charity is a limited company and statutory accounts are filed annually with Companies House.

The members of the company comprise the Diocesan Bishop, each member for the time being of the Blackburn Diocesan Synod, including sufficient co-opted lay members in order to ensure that there is a majority by one of lay membership. Many of Diocesan Synod’s responsibilities have been delegated to the Bishop’s Council and standing committee.

The members of Bishop’s Council are the Board of Trustees for the charity and in company law the Directors.

The Directors comprise six ex-officio members; the Diocesan Bishop, the Suffragan Bishops, the two Archdeacons, the Dean of Blackburn Cathedral. Four ex-officio elected positions; the Chairs and Vice Chairs of the Houses of Clergy and Laity of Diocesan Synod. Three ex-officio appointed positions; the Chair and Vice Chair of the Board of Finance and the Chair of the Property Committee. The elected members are 4 clergy, 2 from each archdeaconry, elected by the House of Clergy and 8 lay members, 4 from each archdeaconry, elected by the House of Laity. Two members may be co-opted with the approval of the directors. Elections took place in 2018 with directors, both elected and co-opted, taking up post on 1 January 2019 for a term of three years.

Governance and policy of the BDBF is the responsibility of the directors.

Corporate priorities and the overall financial strategy for the BDBF, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of Blackburn, are agreed by the Directors and confirmed by Diocesan Synod.

The responsibility for ensuring that these priorities and strategies are delivered were delegated to the Vision Area Leaders.

The members of the company meet once a year in the general meeting to receive the annual report and financial statements. The Diocesan Synod each year receives and agrees the parish share budget, prepared and approved by the Directors. The Directors meet during the year to formulate and coordinate policies on mission, ministry and finance.

Some role names in the company incorporate the title ‘Director’ but, for the purposes of company law, are not directors of the company.

Diocesan Synod has delegated the following functions to the Directors of the BDBF:

Statutory ecclesiastical boards and committees:

The Diocesan Mission and Pastoral Committee is responsible for the task of approving pastoral reorganisation, taking account of available clergy numbers and making use of new patterns of ministry. It is also responsible for finding appropriate alternative uses for churches which are closed for public worship.

The Diocesan Advisory Committee advises on matters affecting churches and places of worship such as architecture, archaeology, art and the history of places of worship, the use and care of places of worship and their contents and the care of churchyards.

Page 11

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

The Parsonages Board : the BDBF is designated as the Parsonages Board for the Diocese for the purpose of exercising the Parsonages Board’s functions under the Repair of Benefice Buildings Measure 1972.

The Blackburn Diocesan Board of Patronage , constituted under the provisions of the Patronage (Benefices) Measure 1986, is sole or joint patron of a number of benefices.

Non-statutory committees:

The Finance Committee is responsible for the transaction of some of the business of the BDBF. Within delegated limits it can approve grants and other support and makes recommendations to the Directors in other cases. The membership of the Committee consists of the Chair and Vice Chair of the Board of Finance, the Diocesan Bishop and the two Archdeacons. Bishop’s Council can co-opt up to six members on the basis of their expertise, of whom a minimum of 3 must be members of Bishop’s Council and Directors of the BDBF.

The Property Committee is responsible for making major decisions concerning the management of parsonage and other houses owned by the BDBF, including setting the policy for their purchase, sale, repair and maintenance. The committee has delegated authority to authorise repairs within an agreed budget and to buy and sell property and land vested in the Board of Finance for diocesan purposes. It is also responsible for determining policy and making major decisions concerning the management of glebe property and investments for the benefit of the Blackburn Diocesan Stipends Fund.

The Investment Committee meets on a regular basis to consider diocesan investments, to adjust the portfolio within parameters agreed by the Directors and to make recommendations to the Directors.

The Audit, Governance and Risk Committee is responsible for assisting the Directors in the discharge of their responsibilities for accounting policies, risk management, internal control and financial reporting, including liaison with the auditors.

The HR Committee deals with sensitive and other matters in relation to employed staff which cannot be considered by the full Board, partly because of their confidential nature and partly because of time pressures and includes two members co-opted for their HR expertise.

The Budget Scrutiny Committee was established in 2019 to assist the Bishop’s Budget team in drawing up the annual draft budgets for approval by the Directors prior to submission to Diocesan Synod.

The Financial Assistance Group considers all applications for financial assistance from the Diocesan Vision Grant and Loan Funds. It makes recommendations for support to the Finance Committee for applications in excess of this amount.

Directors’ induction

Directors are given an induction file when first appointed. Explanations are given in Directors’ meetings to provide continuing training and Directors are encouraged to ask questions in order to develop their understanding of the charity. If additional information is required, it is brought to the attention of directors and the directors’ induction file updated accordingly. In 2019 a training session was arranged to inform the Directors of their governance responsibilities.

Remuneration of key management personnel

The salary scale of the Diocesan Secretary is determined by the Chair of the BDBF, but any annual award is in line with the other employed staff salary increase.

The salary levels of other key management personnel and all further posts are set by a job evaluation system. Annual pay increases are determined by the HR Committee within a maximum set by the budgeting process. The members of the HR Committee are the Archdeacon of Lancaster, a clergy director, a lay director and two members co-opted for their HR expertise.

Funds held as custodian trustee

The BDBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the BDBF does not control them and these assets are held separately to those of the BDBF.

PCC trust investment assets held by the BDBF had a market value of £16.35m at 31 December 2020 ( 2019: £15.61m ). Detailed certificates of holdings were sent to parishes (c. 1,500 accounts) and other

Page 12

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

managing trustees of the respective charities as requested at that date. Details of these investments are summarised in note 29.

DIRECTORS’ RESPONSIBILITIES

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

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors 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 Directors 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 BDBF and of the surplus or deficit of the BDBF for that period. In preparing these financial statements the Directors are required to:

The Directors are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the BDBF and enable them to ensure that the financial statements comply with the Companies Act 2011. They are also responsible for safeguarding the assets of the BDBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included in the BDBF’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 Directors are aware:

APPOINTMENT OF AUDITOR

The re-appointment of Haysmacintyre LLP as auditors to the BDBF will be proposed at the Annual General Meeting.

Page 13

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

ADMINISTRATIVE DETAILS

Registered Address Diocesan Offices, Clayton House, Walker Office Park, Blackburn Diocesan Offices, Clayton House, Walker Office Park, Blackburn
BB1 2QE
Trustees/Directors
Ex-Officio Rt Revd J T Henderson
Rt Revd P J North
Rt Revd J L C Duff
Very Revd P Howell-Jones
Ven M C Ireland
Ven D Picken (appointed 2 February 2020)
Ex-Officio elected position Mr R J Collins
Mr T D Cox
Revd Canon Dr S J Cox (resigned 31 August 2020)
Revd I Enticott (resigned 21 July 2020)
Revd Canon A McHaffie (appointed 7 October 2020)
Revd M Wolverson (appointed 7 October 2020)
Ex-Officio appointed Mr D Barlow
Mr N P Aves
Revd Canon A G Sage
Co-opted Mr D J Wilkinson
Elected Clergy Revd Canon A Holliday
Revd P A Lillicrap
Revd J Nash
Revd L Senior (resigned 6 December 2020)
Elected Lay Persons Mr G D Burrows
Dr A Carter
Professor R Carter
Canon M L Chew
Mrs P Chadwick (resigned 13 May 2020)
Mr M Gardner
Ms J M Stamper
Key management personnel and advisers
Diocesan Secretary, Canon G Pollard
Company Secretary
Head of Finance, Deputy Mrs R McGaughey
Diocesan Secretary
Solicitors Napthens LLP,Darwen House, Walker Office Park, Blackburn BB1
2QE
Insurers Ecclesiastical Insurance Office, Beaufort House, Brunswick Road,
Gloucester GL1 1JZ
Bankers National Westminster Bank,35 King William St, Blackburn BB1 7DJ
Investment Managers CCLA Investment Management Ltd,Senator House, 85 Queen
Victoria St, London EC4V 4ET
Registered Auditor Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG
Glebe and Land Agent Lea Hough & Co LLP,Phoenix Park, Blackburn BB1 5RW

Page 14

Annual Report and Financial Statements For the year ended 31 December 2020

The Blackburn Diocesan Board of Finance Limited

Whalley Abbey Architect

Mr I Wilson, Ivan Wilson Architects Ltd, Waterloo Mill, Waterloo Rd, Clitheroe, Lancashire BB7 1LR

ATTENDANCE OF DIRECTORS AT MEETINGS IN 2020 ATTENDANCE OF DIRECTORS AT MEETINGS IN 2020
Total
Ex officio Mr N P Aves 6/6
Mr D Barlow 5/6
Mr R J Collins 5/6
Revd Canon Dr S J Cox 3/3
Mr T D Cox 6/6
Rt Revd J L C Duff 6/6
Revd Ian Enticott 2/3
Rt Revd J T Henderson 6/6
Very Revd P Howell-Jones 5/6
Ven M C Ireland 5/6
Rt Revd P J North 6/6
Ven D Picken 6/6
Revd Canon A G Sage 6/6
Co-opted Mr D J Wilkinson 5/6
Elected Clergy Revd Canon A Holliday 6/6
Revd P A Lillicrap 5/6
Revd James Nash 6/6
Revd Lisa Senior 4/6
Revd Canon A McHaffie 2/2
Revd M Wolverson 2/2
Elected Lay Persons Mr G D Burrows 6/6
Dr A Carter 6/6
Professor R Carter 6/6
Mrs Patricia Chadwick 1/2
Canon M L Chew 4/6
Mr Melvyn Gardner 6/6
Ms J M Stamper 6/6

By order of the Board approving both the Directors’ Report and Strategic Report

Mr D Barlow

Chair of the Board of Finance

Mr N P Aves Vice-chair of the Board of Finance

12 June 2021

Page 15

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF FINANCE LIMITED

Opinion

We have audited the financial statements of The Blackburn Diocesan Board of Finance Limited for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 16

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 13 , the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006 and the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered other factors such as income tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and concluded that the risk was low. Audit procedures performed by the engagement team included:

Page 17

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 24 June 2021

10 Queen Street Place London EC4R 1AG

Page 18

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2020

Note
Income and endowments from:
Donations and legacies
Parish contributions
Archbishops' Council and Church
commissioners
2
Other
3
Charitable activities:statutory fees,
chaplaincy and other income
4
Other trading activities
5
Investments
6
Other
7
Total Income and endowments
Expenditure on:
Raising funds
8
Charitable activities
9
Other
Total Expenditure
11
Net income/(expenditure) before
investments
Net (loss)/gains on investments
18
Net income/(expenditure) before
transfers
Transfers between funds
12
Net income/(expenditure) before other
recognised gains and losses
Other recognised gains/(losses)
Gain/(loss) on revaluation of fixed assets
18
Gain/(loss) on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds at 1 January 2019
Total funds at 31 December 2020
24		 Unrestricted funds
General
Desig-
nated
Restricted
funds
Endowment
funds
£000
£000
£000
£000
7,160
-
-
-
1,155
-
2,080
-
105
152
169
27
75
-
433
-
143
-
141
140
226
12
455
29
6
1
182
161




8,870
165
3,460
357




145
-
12
28
3,039
65
7,558
676
-
-
-
95


3,184
65
7,570
799




5,686
100
(4,110)
(442)
309
27
(14)
722



5,995
127
(4,124)
280
(4,670)
(45)
3,727
988



1,325
82
(397)
1,268
-
-
134
(38)
-
-
-



1,287
82
(397)
1,402
7,209
2,544
11,466
45,667



8,496
2,626
11,069
47,069		 Total
funds
2020
£000
7,160
3,235
453
508
424
722
350
12,852
185
11,338
95
11,618
1,234
1,044
2,278
-
2,278
134
(38)
2,374
66,886
69,260		 Total
funds
2019
£000
7,585
2,466
378
730
506
733
849
13,247
291
12,246
24
12,561
686
2,649
3,335
-
3,335
988
1,719
6,042
60,844
66,886

All activities derive from continuing activities. The notes on pages 23 to 52 form part of the financial statements.

Details of comparative figures (2019) for the Statement of Financial Activities by fund are disclosed in note 30.

Page 19

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

INCOME AND EXPENDITURE ACCOUNT

for the year ended 31 December 2020

for the year ended 31 December 2020
2020 2019
£000 £000
Total income 12,495 13,006
Total expenditure (10,819) (11,415)
______ ______
Operating surplus/(deficit) for the year 1,676 1,591
Net gains on investments 322 841
______ ______
Net income for the year 1,998 2,432
Other comprehensive income:
Net assets transferred to endowments (987) 2,196
Actuarial (losses)/gains on defined benefit pension (38) 1,719
schemes
______ ______
Total comprehensive (expenditure)/income 973 6,347

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 20

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

BALANCE SHEET

at 31 December 2020

at 31 December 2020
Note 2020 2019
£000 £000 £000 £000
Fixed Assets
Tangible Assets 17 40,407 39,454
Investments 18 21,584 20,528
Investment Property 18 1,837 2,798
______ ______
63,828 62,780
Current assets
Stocks 5 4
Debtors (amounts receivable after more than 19 1,247 901
one year: £840,000 (2019:£569,000))
Deposits and Cash at bank and in hand 6,277 5,525
______ ______
7,529 6,430
Creditors:amounts falling due within one year 20 (701) (569)
______ ______
Net current assets 6,828 5,861
Creditors:amounts falling due after more than 20 (707) (707)
one year
Provisions for liabilities:Pensions and 20 (689) (1,048)
similar obligations
______ ______
(1,396) (1,755)
_ _
Net Assets 23 69,260 66,886
_ _
Capital and Reserves
Endowment funds 26 47,069 45,667
(Including investment revaluation reserve of
£8,694,000 (2018: £6,299,000))
Restricted funds 25 11,069 11,466
(Including investment revaluation reserve of £22,000
(2018: £29,000))
Unrestricted funds 24 8,496 7,209
(Including investment revaluation reserve of
£3,123,000 (2018: £2,334,000))
Designated funds 24 2,626 2,544
(Including investment revaluation reserve of £187,000
(2018: £128,000))
_ _
69,260
_		 66,886
_

The notes on pages 23 to 52 form part of the financial statements.

These financial statements were approved by the Directors and were signed on their behalf on 12 June 2021 by:

Mr D Barlow

Chair of the Board of Finance

Vice-chair of the Board of Finance

The Blackburn Diocesan Board of Finance Ltd is a company limited by guarantee registered in England and Wales (no. 225457)

Page 21

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

CASH FLOW STATEMENT

for the year ended 31 December 2020

Net income before other recognised gains and losses
(Gains)/Losses on disposal of fixed assets
(Gains)/Losses on disposal of investments
Depreciation
Decrease/(increase) in stock
(Increase)/decrease in debtors
(Decrease)/increase in creditors current liabilities
Movement in pension commitment
Cash (outflow)/ inflow from operating activities
Net income from investing activities
Purchase of tangible fixed assets
Proceeds of sale of fixed assets
Purchase of investments
Proceeds of sale of investments
Net cash infow/(outflow) from investing activities
Net cash inflow/(outflow) from financing activities
Loan repayments received
New loans made
Net cash inflow/(outflow) from financing activities
(Decrease)/increase in cash in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
Cash in hand and at bank
Short term deposits		 2020
£000
1,234
(309)
95
89
(1)
(79)
132
(397)
(1,792)
1,059
(12)
1,000
56
(323)

 2020
£000
764
255
(267)
_
752
5,525
6,277
2020
£000
2,666
3,611
_
6,277
 2019
£000
686
(733)
(35)
100
2
(75)
(730)
(427)

(1,131)
1,969
(314)
416
21
-
 _ 2019
£000
(1,212)
940
21
_
(251)
5,776
5,525
2019
£000
2,550
2,975
______
5,525

The notes on pages 23 to 52 form part of the financial statements.

Page 22

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

(forming part of the financial statements)

  1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable company’s financial statements.

Basis of preparation

The financial statements have been prepared in accordance with the Companies Act 2006, the Charities SORP (2015) and applicable accounting standards FRS102, and under the historical cost convention adjusted for the revaluation of certain fixed assets.

The Directors are satisfied that there are no material uncertainties about the charitable company’s ability to continue in operational existence for the foreseeable future . The Trustees have taken into account the effect of the Covid 19 pandemic on its operations. The Trustees believe they have sufficient reserves to allow time to adjust the operations of the charitable company to meet the changed circumstances. Accordingly, they continue to adopt the going concern basis in preparing the Trustees’ annual report and financial statements.

The Directors believe that the charitable company is a public benefit entity.

Critical accounting judgements and key sources of estimation uncertainty

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

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

Judgements made by the Trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and the assumptions used in determining the value of the pension scheme deficit.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Fixed assets and depreciation

Assets with a value in excess of £500 are capitalised. Depreciation is provided for on the jointly owned Diocesan Offices and Whalley Abbey Retreat and Conference House. No other depreciation is provided on the charitable company’s freehold buildings including parsonage houses (explanation regarding parsonage houses is included in note 18) as the depreciation charge is immaterial. Freehold land is not depreciated.

As it is the charitable company’s policy to maintain houses to a high standard, in accordance with a planned approach to repair and maintenance, such properties maintain residual disposal values in aggregate at least equal to their book values.

The charitable company will perform annual impairment testing of assets on which depreciation is not provided to determine whether residual values of housing properties in aggregate continue to exceed carrying value.

The Company holds all Heritage assets at an accurate valuation wherever possible. Where not possible they are held at depreciated value.

Page 23

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Depreciation is provided to write off the cost less the estimated residual value of other tangible fixed assets by equal instalments over their estimated useful economic lives as follows:

Leasehold property 30 years or, if shorter, the remainder of the lease term Diocesan Offices 50 years on property 20 years on remodelling Whalley Abbey Retreat and Conference House 15 years to a residual value of £500,000 Fixtures, fittings and office equipment 4-10 years Heritage asset 15 years Fixed asset investments

Fixed asset investments are stated at market value at the balance sheet date. Movements in market value arising during the year are shown as unrealised gains or losses on fixed asset investments in the Statement of Financial Activities.

Investment properties

Investment properties are included at their fair value.

Glebe land is recognised as held for investment purposes when it is held to rent out or there is a signed developers agreement.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Income

Parish contributions

Income includes amounts received from Parochial Church Councils in respect of parish share for general, stipends fund and parsonage house fund assessments. Parish share is recognised in the accounts when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.

Income from Archbishops’ Council and Church Commissioners

Money from National Church Institutions is recognised when entitlement is probable.

Other donations, grants, legacies and similar income

Grants and donations receivable towards the cost of additions or improvements to freehold buildings are credited to income in the period to which they relate. Other grants are recorded as income when entitlement is probable. Other donations are recorded as income when received.

Other trading activities

The income from these sources is recognised on an accruals basis

Investment income

Investment income is recognised on an accruals basis.

Expenditure

Expenditure has been charged to the Statement of Financial Activities on an accruals basis. Expenditure relating directly to the objectives of the charity is shown as direct charitable expenditure.

Grants payable

Grants payable are debited to expenditure when the charitable company has a constructive obligation to pay.

Page 24

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Ministry in Parishes

Ministry in Parishes includes the stipends, NI, pensions, housing costs and any direct expenses paid by the charitable company for ministers located in parishes.

Ministry Support

Ministry Support includes the costs of the charitable company that provide either a direct service to the parishes or to the community of the parish. It also includes the National Training costs paid to National Church for the training of Ordinands and the costs of Whalley Abbey the retreat house of the Diocese.

Support and Governance Costs

Governance costs includes audit fee, trustee meeting expenses, Diocesan Synod expenses, Bishop’s Council expenses and an allocation of costs based on estimated time spent preparing statutory information and for governance/ strategic issues, by the Finance Team, Diocesan Secretary and Support Services Team.

Support includes the costs of the finance team and general management not included under Governance costs. Support costs have been allocated based on an estimate of time spent in each area.

Taxation

The Blackburn Diocesan Board of Finance Limited (by guarantee) is considered to pass the tests set out in paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in independently administered funds. The amount charged in the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period.

The charitable company also participates in the Church Workers Pension Fund and the Church of England Funded Pension Scheme (see note 16). The assets of the defined benefit pension schemes are held separately from the charitable company in independently administered funds. The pension costs charged as expenditure represent the BDBF’s contributions paid in respect of the accounting period, in accordance with FRS102. Deficit funding for the pension schemes to which the BDBF participates is accrued at current value.

Fund accounting

Funds held by the charitable company are either:

Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds – these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds - this is capital, held in perpetuity to create income for specified purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 25

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Where a grant or donation is received to fund a capital item or where an asset is donated, if there is an obligation relating to the future use or retention of the relevant asset, the balance relating to that asset is held within restricted funds as long as that restriction exists. Where there is no such restriction, the income relating to the purchase of capital items is transferred to unrestricted funds in the Statement of Financial Activities.

2. Archbishops’ Council and Church Commissioners

Unrestricted fund
Restricted
Endowment
General
Designated
funds
Funds
£000
£000
£000
£000
Lowest Income Communities
Funding
-
-
1,310
-
Sustainability Funding
1,100
-
-
-
Resourcing Ministerial Education
Block Grant
-
-
220
-
Pooling of Ordinands costs
25
-
-
-
Strategic Ministry Fund
-
-
48
-
Strategic Capacity Funding
30
-
57
-
Strategic Development Funding
-
-
445
-

1,155
-
2,080
-		 Total
funds
2020
£000
1,310
1,100
220
25
48
87
445
3,235		 Total
funds
2019
£000
1,284
-
217
-
-
42
923
2,466

3. Other donations

Unrestricted Funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Allchurches Trust
-
147
-
-
Donations
5
5
56
-
Other Grants
100
-
113
27
105
152
169
27		 Total
funds
2020
£000
147
66
240
453		 Total
funds
2019
£000
174
95
109
378

Page 26

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

4. Charitable activities

Unrestricted Funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Statutory fees; chaplaincy income
-
-
357
-
Church Commissioners -
Guaranteed annuities
-
-
2
-
Recharge of staff costs
-
-
53
-
Whalley Abbey Conference House
21
-
-
-
Sale of publications
5
-
-
-
Income for training courses
21
-
3
-
Other fees/sales
28
-
18
-

75
-
433
-

her trading activities
Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Rental Income
96
-
141
140
Whalley Abbey Conference House
7
-
-
-
Accounting and Legal services
18
-
-
-
Consultancy services
22
-
-
-
Other fees/sales
-
-
-
-
143
-
141
140
vestment income
Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Dividends receivable
217
12
414
29
Interest receivable
9
-
7
-
Rents receivable
-
-
34
-
226
12
455
29		 Total
funds
2020
£000
357
2
53
21
5
24
46
508
Total
funds
2020
£000
377
7
18
22
-
424
Total
funds
2020
£000
672
16
34
722		 Total
funds
2019
£000
523
2
18
92
20
26
49
730
Total
funds
2019
£000
363
94
45
-
4
506
Total
funds
2019
£000
677
26
30
733

5. Other trading activities

6. Investment income

7. Other income

Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Gains on disposal of fixed assets
-
-
174
161
Gains on disposal of investments
-
-
-
-
Loan interest
6
1
8
-
6
1
182
161		 Total
funds
2020
£000
335
-
15
350		 Total
funds
2019
£000
798
43
8
849

Page 27

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

8. Cost of raising funds

st of raising funds
Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Project Management
12
-
-
-
Parish share
Secretariat
8
-
-
-
Archdeacons
-
-
6
-
Bishop’s Harvest Appeal
-
-
1
-
Investment Management Costs
4
-
1
-
Rents
11
-
4
28
Fundraising Trading Whalley
Abbey
70
-
-
-
Fundraising Trading other
40
-
-
-




145
-
12
28		 Total
funds
2020
£000
12
8
6
1
5
43
70
40

185		 Total
funds
2019
£000
14
8
5
1
7
37
185
34
291

Page 28

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

9. Expenditure on charitable activities

Unrestricted funds Unrestricted funds Restricted Endowment Total funds Total funds
General Designated Funds Funds 2020 2019
£000 £000 £000 £000 £000 £000
Contributions to Archbishops' Council
Training for ministry 302 - - - 302 302
National Church responsibilities 227 - - - 227 240
Grants and provisions 25 - - - 25 26
Mission Agency pension
contributions 11 - - - 11 3
Retired clergy housing costs
(CHARM) 109 - - - 109 103
Pooling of ordinand candidates
costs - - - - - 29
General Synod expenses 6
 -
 -
 -
 6
 14
680 - - - 680 717
Parish ministry
Stipends & National Insurance - - 4,854 - 4,854 4,468
Pension contributions 9 - 1,152 - 1,161 1,165
Housing costs 59 3 198 676 936 1,485
Removal, resettlement and other
grants - - 138 - 138 273
Other expenses -
 -
 24
 -
 24
 43
68 3 6,366 676 7,113 7,434
Support for ministry 1,519 2 189 - 1,710 1,661
Whalley Abbey Conference House 252 - - 252 239
Whalley Abbey House Renovation - - 35 - 35 54
Redundant churches - - 56 - 56 67
Strategic Development Fund
Projects - 45 273 - 318 1,057
St Philip’s Centre Project - - 32 - 32 28
Grants to Parishes, individuals and
other charities 143 15 600 - 758 601
Sale of Publications 8 - - - 8 25
Miscellaneous Expenses -
 -
 5
 -
 5
 -
1,922 62 1,190 - 3,174 3,732
Expenditure on education
Grants for the work of the Board 369
 -
 2
 -
 371
 363
369
 -
 2
 -
 371
 363
Charitable activities 3,039 65 7,558 676 11,338 12,246

Page 29

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

  1. Analysis of expenditure including allocation of support costs
Analysis of expenditure including allocation of support costs
Activities
Grant
Manage-
ment
undertaken
funding of
Admin
directly
Activities
Support
£000
£000
£000
Fundraising Trading Whalley Abbey
70
-
-
Cost of raising funds
89
-
26
Contributions to Archbishops' Council
-
680
-
Resourcing ministry and mission
8,611
757
919
Education
-
371
-
Other
95
-
-



8,865
1,808
945		 Total
2020
£000
70
115
680
10,287
371
95

11,618		 Total
2019
£000
185
106
717
11,166
363
24
12,561
  1. Analysis of support costs
Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Raising Funds
20
-
6
-
Central Administration
490
-
-
198
Governance costs
Secretariat
48
-
-
-
Accounting and Finance Office
37
-
-
-
Audit & accountancy fees
19
-
-
-
Diocesan Synod costs
9
-
-
-
DBF Executive and Bishop’s
Council Meetings
20
-
-
-
Chancellor and Registrar Fees
98
-
-
-


741
-
6
198		 Total
funds
Total
funds
2020
2019
£000
£000
26
27
688
576
48
51
37
37
19
21
9
12
20
10
98
73
945
807

Page 30

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

12. Analysis of transfers between funds

Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
From general fund to stipends income
fund (restricted) and parsonages fund
(expendable endowment), to cover the
deficits on net expenditure of those
funds
(4,765)
4,279
486
From Pastoral Fund to Parsonages
Fund – transfer costs of parsonages
bought
(589)
589
From Parsonages Fund to Pastoral
Fund – book value of parsonages
transfered to the BDBF for disposal by
pastoral schemes
104
(104)
From Stipends Income Fund to general
fund for HR support cost relating to time
spent on clergy HR matters
51
(51)
From Church Commissioners Grant
(restricted) and Vision 2026 fund
(designated) to general fund for the
Vision Coordinator post
30
(10)
(20)
From general fund to designated
pension fund for budgeted allocation
towards pension deficits
(20)
20
From Diocesan Vision 2026 Strategic
Development fund to general fund and
Parsonages fund to cover loss of
income from houses used for projects
40
(61)
4
17
From general fund to designated funds
for office building for prior year building
retention
(6)
6




(4,670)
(45)
3,727
988		 Total
2020
£000
-
-
-
-
-
-
-
-
-

The funds that have been transferred have been used in line with any applicable restrictions and have been transferred to make the presentation of the expenditure more transparent. The spending of the funds has extinguished any restrictions.

Page 31

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

13. Net income for the year

Net income for the year
2020 2019
These are stated after charging: £000 £000
Fees payable to the auditor for audit services 19 18
Fees payable to the auditor for non audit services 1 3
Whalley Abbey Conference House Trading Deficit 146 183

14. Staff numbers and costs

The average number of people employed during the year was 42.0 (2019: 49.0) of this 1.0 (2019: 3 .0 ) were sessional workers employed at Whalley Abbey and in Social Responsibility Projects.

The full-time equivalent employees during the year, including sessional workers, has been analysed by teams.

Enablers and Obligations
Whalley Abbey Conference House
Vision 2026 Coordinator
Growing Leaders
Making Disciples
Being Withnesses including Social Responsibility Projects
Urban Evangelists		 2020
18.9
5.6
1.6
3.6
2.4
1.3
2.4

35.8
 2019
19.6
9.0
1.3
4.2
2.5
1.2
1.8
39.6

Certain of the costs with reference to the staff numbers analysis by teams above, are recovered from DBE Services Ltd (0.4), Blackburn Diocesan Board of Education (1.3) and Strategic Development Funding (2.4).

The aggregate payroll costs of all employees were as follows:

Wages and salaries
Redundancy and settlement payments
Social security costs
Other pension costs		 2020
£000
1,238
93
118
186
1,635		 2019
£000
1,230
39
111
196
1,576

There was one employee whose salary was in excess of £60,000 in the band £70,000 to £80,000 ( 2019: one employee in the band £70,000 to £80,000 ). Pension contributions in respect of this employee were £30,743 ( 2019: £30,034 ).

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 2020 they were:

Diocesan Secretary and Company Secretary: Canon Graeme Pollard Head of Finance and Deputy Diocesan Secretary Mrs Ruth McGaughey

Remuneration, pensions and expenses for these 2 employees amounted to £196,992 ( 2019: £198,524 for 2 employees ).

Page 32

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

In addition to the foregoing numbers of persons employed by the charitable company in 2020 there were 169.5 ( 2019: 161.2 ) full time equivalent stipendiary clergy in post in the Diocese. These may be analysed as follows:

Archdeacons
Incumbents
Assistant Curates
Lay Workers		 2020
1.9
139.2
25.4
3.0
169.5		 2019
1.7
134.3
24.2
1.0
161.2

The average number of stipendiary clergy in post during 2020 was 176 ( 2019: 177.5).

Although not employed by the charitable company the payroll costs of the above persons are met by the charitable company and are included in the financial statements. The aggregate payroll costs of the above persons are as follows:

Stipend
Redundancy and settlement payments
Social security costs
Apprenticeship Levy
Pension costs - current year
- interest costs		 2020
£000
4,442
30
357
21
1,171
9
6,030		 2019
£000
4,151
26
327
19
1,103
62
5,688
Trustees’ emoluments
Average number of directors
2020 2019
Directors 23.6 24.5

No trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses, totalling £7,185 ( 2019 - £14,602) in respect of General Synod duties, duties as archdeacon or area dean, and other duties as Trustees.

Trustees who are also licensed stipendiary clergy and archdeacons in the Diocese were in receipt of a stipend and housing provided by the BDBF during the year. The BDBF is also responsible for the provision of housing for the Suffragan Bishops but excluding the Diocesan Bishop and cathedral staff.

15. Pension schemes

Church of England Funded Pension Scheme

The BDBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions (see below).

Page 33

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contribution (as a percentage of pensionable stipends) are as set out in the table below.

% of pensionable stipends January 2018 to January 2021 to
December 2020 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2018 the deficit recovery contributions under the recovery plan in force at that time were 11.9% of pensionable stipends until December 2025.

As at 31 December 2019 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

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

2020 2019
£’000 £’000
Balance sheet liability at 1 January 1,048 3,169
Deficit contribution paid (499) (463)
Interest cost (recognised in SoFA) 9 62
Remaining change to the balance sheet liability* (recognised in SoFA) 38 (1,720)
Balance sheet liability at 31 December 596 1,048

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

December December December
2020 2019 2018
Discount rate 0.2% pa 1.1% pa 2.1% pa
Price inflation 3.1% pa 2.8% pa 3.1% pa
Increase to total pensionable payroll 1.6% pa 1.3% pa 1.6% pa

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.

Group Personal Pension Plan

The BDBF participates in a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the BDBF in an independently administered fund. The pension cost charge for the year represents contributions payable by the BDBF to the fund.

Page 34

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Church Workers Pension Fund

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

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

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

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

It is not possible to attribute the scheme’s assets and liabilities to specific employers, since each employer, through the Life Risk Pool, is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102 and as such 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 (2020: £60,088; 2019: £68,006), plus any impact of deficit contributions highlighted in the table below.

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

A valuation of the DBS is carried out once every three years, the most recent having been carried out as at 31 December 2016. In this valuation, the Life Risk Section was shown to be in deficit by £2.6m and £2.6m was notionally transferred from the employers’ sub-pools to the Life Risk Pool. This increased the Employer contributions that would otherwise have been payable. The overall deficit in the DBS was £26.2m.

A valuation as at 31 December 2019 was under way as at 31 December 2020. The contributions agreed at that valuation will be reflected in the figures disclosed in the 2021 accounts.

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay a contribution rate of 41.2% of pensionable salary and expenses of £2,900 per year.

The BDBF and the Blackburn Diocesan Board of Education (BDBE) are jointly in the scheme and the Directors will agree a split of the liability.

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

joint movement in the provision is set out below:
Joint Movement 2020 2019
£’000 £’000
Balance sheet liability at 1 January - -
Deficit contribution paid - -
Interest cost (recognised in SoFA) - -
Remaining change to the balance sheet liability*(recognised in SoFA) - -
Balance sheetliability at 31 December - -

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:

December 2020 December 2019 December 2018
Discount rate 0.00% 0.00% 0.00%

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.

Page 35

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Parsonages Board Retirement Benefit Schemes

The Parsonages Board Retirement Benefit Schemes contains one scheme with one member. It is a defined benefit scheme with the Ecclesiastical Insurance Group.

The scheme is not considered material within the assets of the Blackburn Diocesan Board of Finance and due to the cost to the charity of obtain information on the scheme the Blackburn Diocesan Board of Finance have not complied in full with the requirements of FRS102.

The deficit was recognised at 1 January 2014 based on the triannual valuation (2013) of £94,200. The SOFA has been charged with the future service contribution rate with the past service deficit reducing the balance sheet liability in the intervening years. The balance sheet deficit has been adjusted on receipt of the latest triannual valuation report (June 2019). The deficit recognised at 31 December 2020 is £93,100.

16. Analysis of grants made

Nbr
Grants to
Individuals
Grants to
Institutions
From Unrestricted Funds for national Church
responsibilities
Contributions to Archbishops Council
5
-
372
Training
1
-
302
General Synod Expenses
11
6
-
From Unrestricted Funds to
Grants to Ordinands
15
127
-
Grant to Board of Education
1
-
369
Charities nominated at Archdeacons Visitaions
-
-
-
Churches Together In Lancashire
1
-
6
Together Lancashire
1
-
10
From Designated Funds to
Parishes from Allchurches fund
6
-
14
From Restricted Funds to
Parishes from Parish Vision Grant fund
28
-
128
Inter Diocesan Counselling Service
1
-
5
Parishes from Allchurches Trust
3
5
Ordinands from RME fund
28
20
-
Retired Clergy and Clergy Widows
180
44
-
Charities nominated at Bishops Harvest Appeal
2
-
24
Parishes from Lower Income Communities Funding
23
-
198
Other Grants to Parishes
4
-
177
Other Grants to Clergy and Ordinands
3
1
-


Total Grants Payable
313
198
1,610		 2020
Total
372
302
6
127
369
-
6
10
14
128
5
5
20
44
24
198
177
1
1,808		 2019
Total
401
302
14
139
363
3
6
-
26
98
5
-
22
56
22
112
109
3

1,681

Page 36

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

17. Tangible fixed assets

Parsonages
Non
Parsonages/
Land
£000
£000
Cost or valuation
At beginning of year
25,996
14,187
Additions
796
975
Disposals
-
(748)
Transfers
(104)
104
At end of year
26,688
14,518
Depreciation
At beginning of year
-
896
Charge for year
-
50
Disposals
-
-
At end of year
-
946
Net book value
At 31 December 2020
26,688
13,572
At 31 December 2019
25,996
13,291		 Total
Freehold
land and
buildings
Long
leasehold
buildings
Fixtures,
fittings and
office
equipment
£000
£000
£000
40,183
316
223
1,771
-
21
(748)
-
(6)
-
-
-



41,206
316
238
896
265
107
50
10
29
-
-
(4)



946
275
132



40,260
41
106



39,287
51
116		 Total
£000
40,722
1,792
(754)
-
41,760
1,268
89
(4)
1,353
40,407
39,454

Parsonage houses are legally vested in the incumbent (an “ecclesiastical corporation sole”) as freeholder during his incumbency. Three features of the incumbent’s freehold have significantly influenced the accounting treatment adopted in these financial statements. Firstly, the freeholder is not free to dispose of the house for personal benefit and is not responsible for maintaining the house. Secondly, proceeds of any sale, following a pastoral reorganisation which makes the house surplus, normally revert to the Diocesan Pastoral Account or Diocesan Stipends Fund. Thirdly, the Diocese is responsible for repair and maintenance, a responsibility which is currently carried out by the Diocesan Property Committee. The Diocese therefore carries both the benefits and obligations of ownership, and accordingly the financial statements include the parsonage houses together with other Diocesan land and buildings.

Parsonage houses and other Diocesan residential houses have been included in tangible fixed assets at cost, or valuation where cost was not available for houses purchased prior to 1998. The valuation attributed to each house was the mid-point (low point for the top two bands) of the council tax valuation banding applied to the house. The aggregate value of the houses valued in this way amounted to £20,724,000 (2019: £21,006,000) .

Page 37

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Heritage Asset

Whalley Abbey was bought from the Diocese of Manchester in 1926. It comprises substantial remains of a Cistercian Abbey founded in 1296 and dissolved in 1537.

The Abbey of St Mary the Virgin, also known as Locus Benedictus de Whalley was founded by Henry de Lacy, third Earl of Lincoln on the 4th April 1296. The Abbey had moved from the unfavourable site of Stanlaw into the Parsonage and other temporary buildings at Whalley in 1283, when there were 20 monks.

Excavation has uncovered the outlines of the church, surviving as foundations, as does the eastern claustral range and the polygonal Chapter House.

The standing Abbey buildings and Conference House

The following notes are extracted from the Conservation Plan prepared in 2002.

The Conservation Plan was compiled under the direction of John Prichard (Lloyd Evans Prichard), architect accredited in building conservation, with architectural history advice from James Anderson and Clare Hartwell (Architectural History Practice), and archaeological advice from Jason Wood (Heritage Consultancy Services).

North-East Gatehouse

The North-East Gatehouse dates to circa 1480, and was constructed to provide an impressive entrance to the Abbot’s Lodging and Clausum , the sacred precinct. It echoes the earlier North-West Gatehouse with its two entrance ways, but is embellished with diagonal buttresses, crenellation, and a statue niche.

Courtyard North Range

The Courtyard North Range may include some medieval content, but the present structures are principally seventeenth century, with nineteenth-century additions, and substantial late twentieth-century alterations to create the tea room, kitchen, and exhibition room. It is excluded from the scheduling.

The Conference House

The Conference House is excluded from the scheduling, but it deserves its Grade I status and is of national significance. The individual components are considered below, and elements of significance discussed.

The central block includes original medieval fabric, such as the arch adjacent to the chapel, as well as medieval stonework which has probably been re-used from demolished structures, such as the window between the Dining Room and the kitchen. The nineteenth century interiors are a very good example of Gothic Revival/Arts and Crafts work; particularly noteworthy is the roof and fireplace in the Great Hall and the staircase decorated windows.

The East Wing

The East Wing extends south from the chapel and comprises inter alia the Paslew Suite and the Peter of Chester room on the ground floor, and seven bedrooms on the first floor. The Paslew Suite and Peter of Chester room may incorporate medieval material, but they, and the bedrooms immediately above, were substantially rebuilt in the late sixteenth century, as evidenced by the mullioned windows in the east wall, the date stone (not always a true indicator and the dating of Forrest Historic by English Heritage during the 21stC refurbishment works. An extension was added in the mid-nineteenth century, with bedrooms above.

The West Wing

The West Range was added in the 1860s, and was well designed externally to blend with the late seventeenthcentury gabled north extension, and the remains of the Abbot’s Kitchen and Long Gallery Range on the west.

The BDBF recognises its responsibility to preserve the heritage asset and is currently looking to raise funds to be able to undertake work on the ruins. It does not intend to acquire other heritage assets. Whalley Abbey grounds are open to the public to view the ruins but access is restricted to the buildings on the site.

The current asset value for Whalley Abbey is £0.9m after a major refurbishment of the house in 2004. The asset is being depreciated over 15 years to £0.5m. The depreciated value represents the value in the accounts of the whole site and is based on an indication made by a local surveyor. It is difficult to obtain an accurate valuation for the site as the ruins represent a continued liability for their maintenance and upkeep which considerably reduces the value of the asset if sold in its entirety.

Page 38

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

18. Investments and investment property

Investment Unlisted CBF Others Total
Property investments investments investments
£000 £000 £000 £000
At valuation
At beginning of year 2,798 20,513 15 23,326
Additions - 12 - 12
Disposals (1,095) - - (1,095)
Increase (decrease) in market value 134
 1,044
 - 1,178
At end of year 1,837
 21,569
 15 23,421
At historic cost 552 10,718 15 11,285

Investment property is Diocesan glebe land vested in the DBF under the Endowments and Glebe Measure 1976 that is held for the purposes of producing income for clergy stipends. The glebe land is measured at fair value at the year end by an independent RICS registered valuer. The valuation has been undertaken in accordance with International and RICS Valuation Standards and has been based upon the valuer’s experience in the valuation of agricultural, institutional and amenity land within the Lancashire and wider north-west region.

Unlisted investments are made up of Central Board of Finance investments in Church of England Investment Fund shares, Property Fund shares and Fixed Interest Securities.

19. Debtors

Amounts receivable within one year
Prepayments and accrued income
Other debtors
Amount owed by related parties (Cidari Education)
Loans to parishes
Loans to individuals
Amounts receivable after more than one year
Loans to parishes
Loans to related parties (All Saints)
Amount owed by related parties (Cidari Education)		 2020
£000
339
39
6
21
2

407

£000
819
10
11

840
 2019
£000
251
42
1
38
-
332
£000
548
-
21
569

Page 39

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

20. Creditors

Creditors
Amounts falling due within one year
Trade creditors
Other creditors (taxation and social security)
Other creditors
Accruals
Amounts owed to related parties (BDBE)
Amounts falling due after more than one year
CCLA loans
Due to Churches Conservation Trust
Provisions for liabilities: Pension deficit		 2020
£000
189
35
260
103
114
701
2020
£000
550
157
689
1,396		 2019
£000
162
41
182
147
37
569
2019
£000
550
157
1,048
1,755

The long term loans from CCLA are flexible loan facilities subject to a maximum repayment term of 10 years. There are no current plans to make any payments in the next 12 months.

The amount owed to Churches Conservation Trust is due on disposal of five redundant church buildings.

21. Commitments

Commitments at 31 December 2020, for which no provision has been made in these accounts, were as follows:

Authorised, but not contracted:
Parish Vision Grant Fund
Allchurches Grant Fund
Clergy Housing Fund		 2020
£000
148
10
306
464		 2019
£000
228
18
139
385

22. Called up share capital

The charitable company is limited by guarantee, registered in England and does not have an authorised or allotted share capital.

Page 40

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

23. Net assets analysed by fund

Tangible Fixed Fixed Asset Net Current Long term Net assets as at
Assets Investment Assets Creditor 31 December
2020
£000 £000 £000 £000 £000
General Fund 2,350 6,365 888 (1,107) 8,496
Designated Funds - 518 2,108 -
 2,626
Total Unrestricted Funds 2,350 6,883 2,996 (1,107) 11,122
Pastoral Account 8,748 - 1,093 (289) 9,552
Other Restricted Funds - 258 1,259 -
 1,517
Total Restricted Funds 8,748 258 2,352 (289) 11,069
Parsonage Houses Fund 26,688 1,037 - - 27,725
Stipends Capital / Housing
Fund 2,621 10,773 1,475 - 14,869
Other Endowment Funds - 4,470 5 -
 4,475
Total Endowment Funds 29,309 16,280 1,480 -
 47,069
Total 40,407
 23,421
 6,828
 (1,396)
 69,260

24. Unrestricted funds

Unrestricted funds comprise those funds which are available for application for the general purposes of the charity as set out in its governing document. Movements on this fund are as follows:

At 1
General Fund
At 1
Designated Funds
Office Assets Fund
Parsonages Fund
Parish Vision 2026 Fund
Diocesan Vision Strategic
Development Fund
Diocesan Vision 2026 Fund
Allchurches Trust Grant Fund
Other Designated Funds		 January
2020
£000
7,209

January
2020
£000
367
327
420
690
396
241
103
______
2,544
 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
8,870
(3,184)
271
(4,670)
8,496





Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
12
-
27
5
411
-
(3)
-
-
324
1
-
-
-
421
-
-
-
(61)
629
79
(46)
-
(9)
420
73
(16)
-
-
298
-
-
-
20
123
__
_


___
165
(65)
27
(45)
2,626

General Fund

The general reserve represents those assets held by the Board for carrying out its general activities. It provides the assets and liquidity for the Board to carry out its objectives, including statutory compliance, administration of funds and some housing. The Board’s policy is to maintain sufficient levels of cash and liquid assets to cover short term fluctuations in incoming resources. The Board were satisfied that the general reserves at the year end were within acceptable levels compared to this policy.

Page 41

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Designated Funds

Fund Application/purpose Income for specific purposes Designated to provide income to specific purposes in the parish share budget Office Assets Fund Designated for repairs, renovation or for buying a new building in the future. Parsonages Fund For repairs and disability adaptation on parsonages in excess of parish share budget Parish Vision 2026 Loan Fund Designated to provide some of the loans to parishes to continue their mission projects Diocesan Vision Strategic DevelopmentDesignated to provide match funding necessary for Strategic Fund Development Funding applications Diocesan Vision 2026 Fund Designated to contingencies for the development of the diocesan vision Allchurches Trust Grant Fund The fund assists with funding the cost of diocesan projects, building administration costs, education, parish mission projects and major building works.

25. Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations, grants and investment income held on trust to be applied for specific purposes:

At 1
Diocesan Pastoral Account
Diocesan Stipends Fund
Income Account
Social Responsibility Projects
Parish Vision 2026 Grant
Fund
Bishops Clergy Widows Fund
Bishops Ordination Fund
Resourcing Ministerial
Education (RME) Fund
Bishop’s Harvest Appeal
Bishop’s Clergy in Need Fund
SDF Funded Projects
Lower Income Communities
Funding
Parish Pastoral Fund
Other Restricted Funds		 January
2020
£000
9,812
-
146
250
599
150
41
21
35
(66)
-
316
162
______
11,466
 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
187
(112)
-
(335)
9,552
989
(6,362)
-
5,373
-
20
(32)
-
-
134		 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
187
(112)
-
(335)
9,552
989
(6,362)
-
5,373
-
20
(32)
-
-
134		 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
187
(112)
-
(335)
9,552
989
(6,362)
-
5,373
-
20
(32)
-
-
134		 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
187
(112)
-
(335)
9,552
989
(6,362)
-
5,373
-
20
(32)
-
-
134		 Income Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
187
(112)
-
(335)
9,552
989
(6,362)
-
5,373
-
20
(32)
-
-
134
26 (128) - 148
73 (45) (14) - 613
5
(1)
-		 - 154
220
23
-
545
1,310
-
62
______
3,460
 (172)
(24)
-
(444)
(198)
-
(52)
______
(7,570)
 -
-
-
-
-
-
______
(14)
 -
-
-
(29)
(1,112)
(150)
(20)
______
3,727
 89
20
35
6
-
166
152
______
11,069

The specific purposes for which the funds are to be applied are as follows:

Fund Application/purpose

Diocesan Pastoral Account

Purposes are laid down in Section 78 of the Pastoral Measure 1983, the main purposes being:

Diocesan Stipends Fund Income Account

Subject to any charges imposed by the scheme or order the fund shall be applied to:

Page 42

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

Social Responsibility Projects

The Social Responsibility section received funding for specific projects and for its general costs relating to those projects. Project funding was restricted to the project it had been requested for and approved expenditure is applied against the funding in accordance with the funders rules.

Parish Vision 2026 Grant Fund The Grant Fund exists to enable parishes to fulfil mission opportunities, normally through the appointment of lay workers.

Bishops Clergy Widows Fund The Bishop’s Clergy Widows Fund is used to help clergy widows and retired clergy in cases of financial hardship, particularly with housing costs. It funds the cost of social events and the cost of the Diocesan Officer and Bishop’s visitors.

Bishops Ordination Fund The Ordination Fund is used to assist with meeting the costs of Ordinands in training. Bishop’s Harvest Appeal Each year the Bishop selects a charity to benefit from his Harvest Appeal. Parishes, Schools and individuals within the Diocese collect money in support of this charity and the monies are distributed by the Diocese in accordance with the appeal. Bishop’s Clergy Fund The fund was established by transfer of some of the Extra Mission and Ministry funds received from the Archbishops’ Council 2008 – 2010. Grants from the fund are awarded at the discretion of the Bishop, to serving clergy in the Diocese.

Resourcing Ministerial Education Specific funding for Ordinands in training from National Church. (RME) Fund Strategic Development Fund, Specific funding for the Outer Estates project and Preston Resourcing Funded Projects parish from National Church Lower Income Communities Fund Funding to promote the growth of churches in Lower Income Communities Parish Pastoral Fund This fund reflects monies ring fenced from the sale of a vicarage in a parish where no scheme for pastoral re-organisation is currently in place. The monies must be held until either a vicarage is purchased, or a scheme is put in place.

Page 43

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

26. Endowment funds

The endowment funds are held on trust to be retained for the benefit of the Charity as a capital fund. Where the whole of the fund must be permanently maintained it is known as permanent endowment. Where there is power of discretion to convert endowed funds into income, the fund is classified as expendable endowment.

At 1 January
2020
£000
Expendable endowment
Diocesan Stipends Fund Capital
Account
14,493
Parsonage Houses Fund
26,966
41,459
Permanent endowment
Bishops Clergy Widows Fund
2,097
Maintenance of the Ministry
291
General purposes
362
Whalley Abbey
159
Other endowments
95
Stipends
1,204
4,208
45,667		 Income
Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
161
(100)
522
(207)
14,869
196
(699)
67
1,195
27,725




357
(799)
589
988
42,594
-
-
144
-
2,241
-
-
20
-
311
-
-
25
-
387
-
-
11
-
170
-
-
7
-
102
-
-
60
-
1,264




-
-
267
-
4,475




357
(799)
856
988
47,069		 Income
Expenditure
Gains and
losses
Transfers
At 31
December
2020
£000
£000
£000
£000
£000
161
(100)
522
(207)
14,869
196
(699)
67
1,195
27,725




357
(799)
589
988
42,594
-
-
144
-
2,241
-
-
20
-
311
-
-
25
-
387
-
-
11
-
170
-
-
7
-
102
-
-
60
-
1,264




-
-
267
-
4,475




357
(799)
856
988
47,069
42,594
2,241
311
387
170
102
1,264
4,475
47,069

Expendable endowments

The Diocesan Stipends Fund Capital Account

This fund represents the value of glebe property and investments at the balance sheet date.

The account is governed by the Diocesan Stipends Fund Measure 1953 as amended by the Endowments and Glebe Measure 1976, the National Institutions Measure 1998, and the Miscellaneous Provisions Measure 1992.

Income arises from the sale of glebe assets, the transfer of parsonage sale money, transfers from the DSF Income account, as well as gifts, bequests and donations.

The main function of the fund is to produce income for the stipends, but it may also be used for other purposes including: acquiring glebe property, investing in a subsidiary, developing and protecting glebe amenities, investment, discharging loans and levies on glebe, improving parsonage houses and discharging any loans made by the Church Commissioners under the Endowments and Glebe Measure 1976.

Parsonages Houses fund

This fund represents the value of benefice houses at the balance sheet date, together with the Parsonages Building Fund held by the Church Commissioners and investments held by the Parsonages Board. The houses are used to provide accommodation for the parochial clergy.

The Diocese is not free to dispose of the houses except in accordance with the appropriate measure. There is provision for the net proceeds of sale to be applied to either the Diocesan Pastoral Account or Diocesan Stipends Fund Capital once a disposal has been effected.

Permanent endowments

The permanent endowments are established under a variety of trust deeds and documents which require the funds to be held in perpetuity. The income of the funds is to be applied to the Bishops Clergy Widows fund, Maintenance of the Ministry fund, General purposes fund, Diocesan Stipends Income fund, Whalley Abbey fund and other smaller endowment funds.

Page 44

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

27. Related parties’ transactions

During the year the company shared office space with the Blackburn Diocesan Board of Education, Cidari Education Ltd and Blackburn Cathedral. Shared expenditure has been recharged at cost.

2020 2020 2019 2019
Recharges Grants Recharges Grants
(excl. VAT) made to (excl. VAT) made to
related related
parties parties
£ £ £ £
Blackburn Diocesan Board of Education 15,474 371,045 23,678 365,001
Cidari Education Ltd 9,836 - 10,776 -
Blackburn Cathedral - - - 22,500

During the year £93,268 has been paid to the All Saints Centre for Mission and Ministry for training of readers and ordinands ( 2019: £102,277). The BDBF has also received £43,334 from the All Saints Centre for Mission and Ministry for the seconded staff ( 2019: £20,643).

At the year end the balances due from related parties were as follows:

Outstanding Outstanding Outstanding Outstanding
Trade Loan Trade Loan
Balances at Balances at Balances at Balances at
31/12/2020 31/12/2020 31/12/2019 31/12/2019
£ £ £ £
Cidari Education Ltd 16,865 - 21,949 -
Blackburn Cathedral 9,854 725,854 - 425,340
All Saints Centre - 10,000 - -

At 31 December 2020 there was a balance due to the Blackburn Diocesan Board of Education of £113,688 ( 2019: £37,694) .

During the year donations received from trustees amounted to £4,124 ( 2019: £3,980 ). No donations have been received from key management personnel ( 2019: £nil ).

28. Financial instruments

Financial assets measured at fair value
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value
Financial assets measured at fair value comprise investments.		 2020
£000
23,421
7,524
1,940
157		 2019
£000
23,326
6,426
2,167
157

Financial assets measured at amortised cost comprise cash, trade debtors, other debtors and receivables and parish loans.

Financial liabilities measured at amortised cost comprise accruals, other creditors, the Clergy Pension Scheme liability and amounts held for other bodies.

Financial liabilities measured at fair value comprise value linked loans.

Page 45

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

29. Funds held as custodian trustee

The BDBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. PCC trust investment assets held by the BDBF have been summarised below at market value:

CBF Church of England Deposit fund
CBF Church of England Investment fund
CBF Church of England Fixed Interest fund
CBF Church of England Property fund
Other
Cash at bank
Total assets held as custodian trustee		 2020
£000
5,120
10,739
384
61
44
5
16,353
 2019
£000
5,341
9,784
370
64
44
3
15,606

The BDBF also acts as custodian trustee in relation to Parochial Church Council (PCC) property. These assets are held separately to those of the BDBF.

Page 46

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

30. Prior year comparative Statement of Financial Activities

Income and endowments from:
Donations and legacies
Parish contributions
Archbishops' Council and Church
commissioners
Other
Charitable activities: statutory fees,
chaplaincy and other income
Other trading activities
Investments
Other
Total Income and endowments
Expenditure on:
Raising funds
Charitable activities
Other
Total Expenditure
Net income/(expenditure) before investments
Net (loss)/gains on investments
Net income/(expenditure) before transfers
Transfers between funds
Net income/(expenditure) before other
recognised gains and losses
Other recognised gains/(losses)
Gain/(loss) on revaluation of fixed assets
Gain/(loss) on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds at 1 January 2019
Total funds at 31 December 2019		 Unrestricted funds
General
Designated
Restricted
funds
Endowment
funds
£000
£000
£000
£000
7,585
-
-
-
30
-
2,436
-
16
144
199
19
171
-
559
-
229
-
127
150
232
12
460
29
7
1
798
43




8,270
157
4,579
241




255
-
11
25
3,048
127
7,974
1,097
-
-
-
24
3,303
127
7,985
1,146




4,967
30
(3,406)
(905)
790
59
(8)
1,808
5,757
89
(3,414)
903
(4,675)
(51)
6,922
(2,196)




1,082
38
3,508
(1,293)
-
-
-
988
1,719
-
-
-
2,801
38
3,508
(305)
4,408
2,506
7,958
45,972




7,209
2,544
11,466
45,667		 Total
funds
2019
£000
7,585
2,466
378
730
506
733
849
13,247
291
12,246
24
12,561
686
2,649
3,335
-
3,335
988
1,719
6,042
60,844
66,886

Page 47

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

31. Prior year comparative Archbishops’ Council and Church Commissioners

Unrestricted Funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Lowest Income Communities
Funding
-
-
1,284
-
Resourcing Ministerial Education
Block Grant
-
-
217
-
Strategic Capacity Funding
-
-
42
-
Strategic Development Funding
30
-
893
-
30
-
2,436
-		 Total
funds
2019
£000
1,284
217
42
923
2,466

32. Prior year comparative Other donations

Unrestricted Funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Allchurches Trust
-
139
35
-
Donations
16
5
74
-
Other Grants
--
-
90
19
16
144
199
19		 Total
funds
2019
£000
174
95
109
378

33. Prior year comparative Charitable activities

Unrestricted Funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Statutory fees; chaplaincy income
-
-
523
-
Church Commissioners -Guaranteed
annuities
-
-
2
-
Recharge of staff costs
-
-
18
-
Whalley Abbey Conference House
92
-
-
-
Social Responsibility projects fees
-
-
-
-
Sale of publications
20
-
-
-
Income for training courses
26
-
-
-
Other fees/sales
33
-
16
-
171
-
559
-		 Total
funds
2019
£000
523
2
18
92
-
20
26
49
730

34. Prior year comparative Other trading activities

Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Rental Income
86
-
127
150
Whalley Abbey Conference House
94
-
-
-
Accounting and Legal services
45
-
-
-
Other fees/sales
4
-
-
-
229
-
127
150		 Total
funds
2019
£000
363
94
45
4
506

Page 48

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

35. Prior year comparative Investment Income

Unrestricted funds Unrestricted funds Restricted Endowment Total funds
General Designated Funds Funds 2019
£000 £000 £000 £000 £000
Dividends receivable 222 11 415 29 677
Interest receivable 10 1 15 - 26
Rents receivable - - 30 - 30
232 12 460 29 733

36. Prior year comparative Other income

Unrestricted funds Unrestricted funds Restricted Endowment Total funds
General Designated Funds Funds 2019
£000 £000 £000 £000 £000
Gains on disposal of fixed assets - - 798 - 798
Gains on disposal of investments - - - 43 43
Loan interest 7 1 - - 8
7 1 798 43 849

37. Prior year comparative Cost of raising funds

Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£000
£000
£000
£000
Project Management
14
-
-
-
Parish share
Secretariat
8
-
-
-
Archdeacons
-
-
5
-
Bishop’s Harvest Appeal
-
-
1
-
Investment Management Costs
5
-
2
-
Rents
9
-
3
25
Fundraising Trading Whalley Abbey
185
-
-
-
Fundraising Trading other
34
-
-
-
255
-
11
25		 Total
funds
2019
£000
14
8
5
1
7
37
185
34
291

Page 49

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

38. Prior year comparative Expenditure on charitable activities

Unrestricted funds Unrestricted funds Restricted Endowment Total funds
General Designated Funds Funds 2019
£000 £000 £000 £000 £000
Contributions to Archbishops' Council
Training for ministry 302 - - - 302
National Church responsibilities 240 - - - 240
Grants and provisions 26 - - - 26
Mission Agency pension contributions 3 - - - 3
Retired clergy housing costs (CHARM) 103 - - - 103
Pooling of ordinand candidates costs 29 - - - 29
General Synod expenses 14 - - -
 14
717 - - - 717
Parish ministry
Stipends & National Insurance - - 4,468 - 4,468
Pension contributions 62 - 1,103 - 1,165
Housing costs 43 12 333 1,097 1,485
Removal, resettlement and other grants - - 273 - 273
Other expenses - 4 39 -
 43
105 16 6,216 1,097 7,434
Support for ministry 1,450 38 173 - 1,661
Whalley Abbey Conference House 239 - - 239
Whalley Abbey House Renovation - - 54 - 54
Redundant churches - - 67 - 67
Strategic Development Fund Projects - 47 1,010 - 1,057
Social Responsibility Projects - - 28 - 28
Grants to Parishes, individuals and other
charities 149 26 426 - 601
Sale of Publications 25 - - - 25
Miscellaneous Expenses - - - -
 -
1,863 111 1,758 - 3,732
Expenditure on education
Grants for the work of the Board 363 - - -
 363
363 363
Charitable activities 3,048 127 7,974 1,097 12,246

39. Prior year comparative Analysis of expenditure including allocation of support costs

Activities
Grant
Manage-
ment
undertaken
funding of
Admin
directly
Activities
Support
£000
£000
£000
Fundraising Trading Whalley Abbey
185
-
-
Cost of raising funds
79
-
27
Contributions to Archbishops' Council
-
717
-
Resourcing ministry and mission
9,785
601
780
Education
-
363
-
Other
24
-
-

10,073
1,681
807		 Total
2019
£000
185
106
717
11,166
363
24
12,561

Page 50

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

40. Prior year comparative Analysis of support costs

Unrestricted funds Unrestricted funds Restricted Endowment Total funds
General Designated Funds Funds 2019
£000 £000 £000 £000 £000
Raising Funds 22 - 5 - 27
Central Administration 397 - - 179 576
Governance costs
Secretariat 51 - - - 51
Accounting and Finance Office 37 - - - 37
Audit & accountancy fees 21 - - - 21
Diocesan Synod costs 12 - - - 12
DBF Executive and Bishop’s
Council Meetings 10 - - - 10
Chancellor and Registrar Fees 73 - - -
 73
623 - 5 179 807

41. Prior year comparative Net assets analysed by fund

Tangible Fixed Fixed Asset Net Current Long term Net assets as at
Assets Investment Assets Creditor 31 December
2019
£000 £000 £000 £000 £000
General Fund 2,392 6,056 227 (1,466) 7,209
Designated Funds - 480 2,064 -
 2,544
Total Unrestricted Funds 2,392 6,536 2,291 (1,466) 9,753
Pastoral Account 9,280 - 820 (289) 9,811
Other Restricted Funds - 272 1,383 -
 1,655
Total Restricted Funds 9,280 272 2,203 (289) 11,466
Parsonage Houses Fund 25,996 970 - - 26,966
Stipends Capital / Housing
Fund 1,786 11,345 1,362 - 14,493
Other Endowment Funds - 4,203 5 -
 4,208
Total EndowmentFunds 27,782 16,518 1,367 -
 45,667
Total 39,454
 23,326
 5,861
 (1,755)
 66,886

42. Prior year comparative Unrestricted funds

At 1
General Fund
Designated Funds
Office Assets Fund
Parsonages Fund
Parish Vision 2026 Fund
Diocesan Vision Strategic
Development Fund
Diocesan Vision 2026 Fund
Allchurches Trust Grant Fund
Other Designated Funds		 January
2019
£000
4,408

328
229
419
729
369
201
231
______
2,506
 Income Expenditure
Gains and
losses
Transfers
At 31 December
2019
£000
£000
£000
£000
£000
8,270
(3,303)
2,509
(4,675)
7,209





11
-
59
(31)
367
-
(12)
-
110
327
1
-
-
-
420
-
-
-
(39)
690
75
(47)
-
(1)
396
69
(29)
-
-
241
1
(39)
-
(90)
103
__
_


___
157
(127)
59
(51)
2,544




 Income Expenditure
Gains and
losses
Transfers
At 31 December
2019
£000
£000
£000
£000
£000
8,270
(3,303)
2,509
(4,675)
7,209





11
-
59
(31)
367
-
(12)
-
110
327
1
-
-
-
420
-
-
-
(39)
690
75
(47)
-
(1)
396
69
(29)
-
-
241
1
(39)
-
(90)
103
__
_


___
157
(127)
59
(51)
2,544
367
327
420
690
396
241
103
______
2,544
_
 __

Page 51

The Blackburn Diocesan Board of Finance Limited

Annual Report and Financial Statements For the year ended 31 December 2020

43. Prior year comparative Restricted funds

At 1
Diocesan Pastoral Account
Diocesan Stipends Fund
Income Account
Social Responsibility Projects
Parish Vision 2026 Grant
Fund
Bishops Clergy Widows Fund
Bishops Ordination Fund
Resourcing Ministerial
Education (RME) Fund
Bishop’s Harvest Appeal
Bishop’s Clergy in Need Fund
SDF Funded Projects
Lower Income Communities
Funding
Parish Pastoral Fund
Other Restricted Funds		 January
2019
£000
6,330
-
156
320
592
144
10
21
37
10
-
189
149
______
7,958
 Income Expenditure
Gains and
losses
Transfers
At 31
December
2019
£000
£000
£000
£000
£000
645
(315)
-
3,152
9,812
1,046
(6,094)
-
5,048
-
18
(28)
-
-
146
28
(98)
-
-
250
74
(59)
(8)
-
599
16
(2)
-
(8)
150
216
(185)
-
-
41
23
(23)
-
-
21
-
(2)
-
-
35
981
(1,057)
-
-
(66)
1,284
(112)
-
(1,172)
-
159
-
-
(32)
316
89
(10)
-
(66)
162
__
_


___
4,579
(7,985)
(8)
6,922
11,466

44. Prior year comparative Endowment funds

At 1 January
2019
£000
Expendable endowment
Diocesan Stipends Fund Capital
Account
12,534
Parsonage Houses Fund
29,856
42,390
Permanent endowment
Bishops Clergy Widows Fund
1,767
Maintenance of the Ministry
245
General purposes
298
Whalley Abbey
134
Other endowments
87
Stipends
1,051
3,582
45,972		 Income
Expenditure
Gains and
losses
Transfers
At 31
December
2019
£000
£000
£000
£000
£000
43
(24)
2,018
(78)
14,493
198
(1,122)
152
(2,118)
26,966




241
(1,146)
2,170
(2,196)
41,459
-
-
330
-
2,097
-
-
46
-
291
-
-
64
-
362
-
-
25
-
159
-
-
8
-
95
-
-
153
-
1,204




-
-
626
-
4,208




241
(1,146)
2,796
(2,196)
45,667		 Income
Expenditure
Gains and
losses
Transfers
At 31
December
2019
£000
£000
£000
£000
£000
43
(24)
2,018
(78)
14,493
198
(1,122)
152
(2,118)
26,966




241
(1,146)
2,170
(2,196)
41,459
-
-
330
-
2,097
-
-
46
-
291
-
-
64
-
362
-
-
25
-
159
-
-
8
-
95
-
-
153
-
1,204




-
-
626
-
4,208




241
(1,146)
2,796
(2,196)
45,667
41,459
2,097
291
362
159
95
1,204
4,208
45,667

Page 52