**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**
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**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**
- Knowing the Scriptures better and equiping confident Christian disciples
- Praying with greater depth and urgency for the Kingdom of God to come
- Offering worship in Spirit and truth through the ministry of word and sacrament
- Giving generously of our time, talents and money to the cause of Christ
## **Being witnesses to Jesus Christ**
- Sharing the Gospel with confidence
- Enabling human flourishing through social action
- Planting or renewing 10 strategic church plants and 200 new congrgations
- Caring for God’s creation
## **Growing leaders for Jesus Christ**
- Developing a diocesan-wide culture of vocational discernment so that all may hear God’s call and use their gifts in the service of the Gospel
- Discerning and forming theologically literate lay and ordained leaders, rooted in prayer and with a deep love of the Lord Jesus
- Nurturing healthy partnerships between clergy and laity by fully implementing the Lay Majority Ministry Framework
- Generating a pipeline of highly motivated deacons and priests in order to enable the Diocese’s clergy deployment strategy
## **Inspiring children and young people**
- Nurturing children and young people in their faith and supporting them as disciples of Jesus Christ
- Holding regular worship that is accessible and appealing to children, young people and their families.
- Enabling growth in the numbers of leaders of children and young people
- Pursuing a step change in work with those aged 11-16
- Facilitating effective partnerships between churches and local schools
## **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
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**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:
- Directors’ Report of a charitable company
- Strategic Report under the Companies Act 2006 and
- Trustees Annual Report under the Charities Act 2011
## **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:
- The BDBF has responsibility for the management of glebe property and investments to generate income to support the cost of stipends.
- It is the Diocesan Authority for parochial and other trusts and incorporates the functions and responsibilities of the Diocesan Parsonages Board.
- The BDBF is custodian trustee in relation to PCC property.
## **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:
- Presence and Engagement parishes (the Church of England’s national programme equipping Christians for mission and ministry in a multi-faith society)
- Cathedral (its role within the town and Diocese)
- Outer estates (deprived urban areas with significant social housing)
- Parish support programme (parishes where there has been decline in attendance and finances, but where there is an active willingness to change)
- The Preston Resourcing Church
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:
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## **The Blackburn Diocesan Board of Finance Limited**
Annual Report and Financial Statements For the year ended 31 December 2020
- providing facilities for public worship, pastoral care and spiritual, moral and intellectual development, both for its members and for anyone who wishes to benefit from what the Church offers; and
- promoting Christian values, and service by members of the Church in and to their communities, for the benefit of individuals and society as a whole.
ACTIVITIES AND ACHIEVEMENTS IN THE YEAR The key activities may be summarised as:
- mission and ministry in parishes (includes clergy training, housing, stipends, pension and all other expenditure required to support parish-based ministry)
- supporting and encouraging the strategic priorities of Vision 2026
- grant funding to Blackburn Diocesan Board of Education Ltd for work with children and young people
- specific diocesan projects
- contributions to the National Church Institutions (mainly by grant support)
- provision of the Diocesan Conference and Retreat House (Whalley Abbey)
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:
- Produced a new advent devotional and distributed 5,000 copies.
- Decided to reopen Whalley Abbey after a time of closure with a new plan to concentrate on it being a focus for Christian Discipleship.
- Promoted contactless giving to parishes (9[th] highest take up of Church of England Dioceses) and the move away from envelope giving to Standing Order giving.
**Being Witnesses** to Jesus Christ we:
- Applied for £3.5m Stage 1 SDF funding from the national church for two strategic Church plants in Blackburn and Blackpool which was approved. The project is entitled “Lighting up New Generations: Blackburn, Blackpool and across Lancashire” and the funding secured in May 2021.
- Completed the Christian Enquiry Course audit, and training provided by three church leaders.
- Established an ‘Online resourcing Group’ which encouraged and supported ‘Virtual Church’ activity enabling parishes to provide worship etc online with 72% of churches doing so by November.
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**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:
- Delivered 4x Clergy study days on inspiring and identifying vocations to which the majority of clergy attended.
- Began the implementation of Lay Majority Ministry strategy by reorganising the growing leaders team appointing a Warden of Lay Ministry and team to launch the Authorised Lay Ministry program alongside re-imagining Reader Ministry as Licensed Lay Ministers.
- Became heavily involved in leading the regional restructuring of theological education for the 6x North West dioceses.
## **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
- Nurturing Children and young people in their faith via accessible worship
- Enabling growth in numbers of Leaders of Children and Young People
- Facilitating effective partnership between churches and local schools and pursuing a step change in work with those aged 11-16
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
- Monitored and developed several financial planning scenarios.
- Successfully applied for £ 1.3m sustainability support funding from the national church.
- Met existing commitments to support the ministry of the Diocese of Blackburn, within a managed agreed deficit budget, and other restricted funds, and subject to reserve constraints, responded to any new need as they arose. We continued to encourage parishes struggling to meet their Parish Share requests to meet DBF Directors, Archdeacons and DBF Officers to discuss their challenges, constraints on their ability to contribute the Parish Share requested, and initiatives for ministry in a constructive and collaborative atmosphere. Where this group was satisfied that there was a clear commitment by the parishes to strengthen their discipleship, stewardship and vision planning, and to meet an adjusted share contribution request, it was able to reduce Share requests for 43 parishes from the parish support fund, by a total of £401,349 (54.2% of the Fund).
- Supported parishes in their mission aspirations with grant funding from the Parish Vision Grant and Loan Fund.
- Continued the roll out of the extensive safeguarding training programme for clergy and parish officers and undertaken the 2[nd] Past Case Review as required by the Church of England.
- Engaged in a review and extensive consultation exercise with parish treasurers on the Parish Giving Scheme.
- Undertook major consultation and associated work in relation to producing a Vision 2026 update to be concluded and launched in 2021.
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.
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**The Blackburn Diocesan Board of Finance Limited**
Annual Report and Financial Statements For the year ended 31 December 2020
## **Related parties**
- General Synod, Church Commissioners, Archbishops’ Council and Church of England Pensions Board
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.
- Parochial Church Councils (PCCs)
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.
- Blackburn Cathedral who lease part of Church House to the BDBF.
- Blackburn Diocesan Board of Education is a registered charity, which has responsibility for 186 Church schools across the Diocese and is responsible for the largest number of voluntary aided schools in the country. It provides pastoral and professional support to all its schools and has particular commitment to enhancing the quality of provision for religious education, collective worship and the spiritual, moral, social, and cultural development of all pupils.
- Cidari Multi-Academy Trust is the Trust that has been established to act as a sponsor for underperforming church schools in the Diocese and to welcome and support converter schools wishing to join the Cidari family of academies.
- All Saints Centre for Mission and Ministry provides training courses for Ordained and accredited Lay Ministry. There are two Directors in common with the BDBF, Rt Revd P J North and Ms J M Stamper. The BDBF is a member of the All Saints Centre. In 2021 this has become the Emmanuel Theological College.
- Together Lancashire is an ecumenical partnership of Anglicans, Methodists and other Christians supported by the Church Urban Fund, its purpose being to help church leaders, congregations and community activists to tackle the effects of poverty. There is one Director in common with the BDBF. This charity is being wound up in 2021.
## 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.
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**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.
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**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.
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**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:
- an annual budget approved by the directors
- regular consideration of financial results and cash flows
- regular review of internal controls
- delegation of authority and segregation of duties
- regular review and update of risk assessments
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
- regular monitoring and meetings with those parishes who need help to meeting their assessment
- provision for the shortfall built into the budget
- pastoral reorganisation to ensure affordability
- focus on stewardship
- free reserves policy
2. 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.
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**The Blackburn Diocesan Board of Finance Limited**
Annual Report and Financial Statements For the year ended 31 December 2020
3. Safeguarding, impact of historic cases – the BDBF follows National Guidelines and during 2020 has undertaken a further past case review.
4. 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.
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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:
- transacting the business of the Diocesan Synod when not in session
- management of the funds and property of the Diocese
- preparation of the annual Parish Share Budget
- advising on action needed to raise the income necessary to finance expenditure
- oversight of expenditure by bodies in receipt of Diocesan Synod’s funds against estimates of expenditure approved by Diocesan Synod
- advising Diocesan Synod of the financial aspects of its policy and on any other matters referred to it; and
- carrying out any other functions delegated by Diocesan Synod.
## **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:
- Select suitable accounting policies and apply them consistently
- Observe methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation
The 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:
- a. there is no relevant audit information of which the charitable company’s auditors are unaware, and
- b. we have taken all the steps that we ought to have taken as Directors in order to make ourselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of than information.
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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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:
- the information given in the Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
Page 16
## **The Blackburn Diocesan Board of Finance Limited**
Annual Report and Financial Statements For the year ended 31 December 2020
- the strategic report and the directors’ report included within the Annual Report have been prepared in accordance with applicable legal requirements.
## **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:
- adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us]; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
## **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:
- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates
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
10. 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|
11. 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
- A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions: An average discount rate of 3.2% p.a.;
- RPI inflation of 3.4% p.a. (and pension increases consistent with this);
- Increase in pensionable stipends of 3.4% p.a.;
- Mortality in accordance with 95% if the S3NA_VL tables, with allowance for improvement in mortality rates in line with the CMI2018 extended model wth a long term annual rate of improvement of 1.5%, a smothing paramenter of 7 and an initial addition to mortality improvements of 0.5% p.a.
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|
* Comprises change in agreed deficit recovery plan and change in discount rate between year-ends.
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|-|-|
* Comprises change in agreed deficit recovery plan and change in discount rate between year-ends.
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:
- Costs incurred for the purposes of the Measure or any scheme or order made by the measure except for salaries of regular diocesan employees
- Costs of disposing of or maintaining houses or churches vested in the DBF or Commissioners
- For the benefit of another diocese
- Transfer to the DSF Capital or Income Funds
Diocesan Stipends Fund Income Account
Subject to any charges imposed by the scheme or order the fund shall be applied to:
- Provide or augment stipends of incumbents, assistant curates and others engaged in the cure of souls in the Diocese
- Meet expenses incurred in repairing and maintaining parsonage houses
Page 42
## **The Blackburn Diocesan Board of Finance Limited**
Annual Report and Financial Statements For the year ended 31 December 2020
- Paying secondary Class 1 contributions in respect of ministers not employed under a contract of service
- ● Defray sequestrators’ expenses
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