2022-12-31-accounts

IOCESE t VISION2026 BLCICLBVRri HEALTHY CHURCFIES TRANSFORMING COMMUNITIES TI11 CI-IURCFI OF CNC,LAND IN I ANCASI IIIIE 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 2022

The Blackburn Diocesan Board of Finance Limited Annual Report and Financial Statements For the ear ended 31 December 2022 Contents VISION STATEMENT....................................................................,........,.,,.,.......... LEGAL OBJECTS...........................................................,....,.,...,...,...................................................................... STRATEGIC REPORT..........................................................,.......,,.,.,................................................................. STRATEGICAIMSAND 08JEcfivESFOR THE YEAR............................................................................................. ACTIVITIESANDACHIEVEMENfs IN THE YEAR....................... ............................................................................. FUTUREPLAN5.... . .........................................................................-.................................................. FINANCIAL REVIEW................................................................................. ............................................................ PRINCIPAL RISKS AND UNCER TAINfiES.............................................................................................................. 11 STRUCTURE, GOVERNANCE AND MANAGEMENT..........,..,.,..,,.,....................................................................12 SUMMARYINFORMA TIONABoufTHESTRUCTUREOFTHE CHURCH OFENGIAND.......................................12 ORGANISAfioNALSTRucfuRE............................. .12 DIRECTORS, RESPONSIBILITIES.. .1$ STATEMENTOFDISCL05URE TO THEAUDITOR5............................................... .15 APPOINTMENTOFAUDifoR......... ...................................................................................................................15 ADMINISTRATIVE DETAILS...................................................................................................,,...,.,,... .............. 16 A ￿ENDANc£OF DIREcfoRSATMEETINGS IN2022......................................................................................... 17 INDEPENDENT AUDITOR'S REPORYTO THE MEMBERSOFTHE BLACKBURN DIOCESAN BOARD OF FINANCE LIMITED..........................................................................................................................,.,,.....,.,... .18 srATEMENT OF FINANCIAL ACTIVITIES..............................................................................,.....,.,..,..... ..... ..... ZI INCOME AND EXPENDITURE ACCOUNT............................................... .22 BALANCE SHEET......................................................................,......,.,......,.,,.,......,.........,..,............................. CASH FLOW STATEMENT............................,....,.......,,..... .24 NOTESTO THE FINANCIALSTATEMENTS....................................,... . .25 Page 1

The Blackburn Diooesan Board of Finance Limited AnnLial Report and Financial Slalemenls For the ear ended 31 Decembei. 2022 VISION STATEMENT Vision 2026 is an agei)da foi. growlh and change lo see'Heallhy Chureh8s Traiislo¥rning Cominunilies. across Ihe Dio¢ese of Blackburn ill OL4r cenlenaiy year of 2026. Tlie Vlsion was launch8d iii 201J when Ilie Diocese of Blackbiirn made a bold slr3legiL decision lo change and to grow Ilirough Ihe priorilies ol.. Making Disclples for Jesus Clirisl . Being Witnesses for Jesus Chiisl . Giowinq Leade18 for Jesus Clitisl . Priorilising Work Amoiig Clii5dren, YoLing People and Scliool5. Over the course of 2020 Ihe Dlocese engaged in 8'Vislon Update, through which we soughl lo idènlily what is going well aiid where the chdll&iige& ale as we seek lo ￿alIse oiir Vision of seeing 'Heallhy Churches Transforming Cornmuiiilies. Our updated Vlslon 2026 building block5 are-. Maklng disciples of Jesus Chrlst Knowing the Scriptures beller and equlpping confident Christian disclples Praying with greater depth and Ljrgency for the Kingdom of God lo come Offering worship in Splril and truth through the minlsliy of word and sa¢rament Giving generously ol our lime, talents and money to the cause of Christ Being wltnesses to JesLlS Chrlst Sharing the Gospel wllh confidence Enabling human Ilourishlng through social action Planting or renewing 1 Q slralegic church plants and 200 new congregalions Caring for God's ¢realion Growlng leaders for Jesus Chrlst Developlng a diocesan-wide oullure of vocalional discernment so that all may hear God's call and use their gills in the service of the Gospel Discerning and forming theologically lilorate lay and ordalned leaders, rooted in prayer and with a deep love of the Lord Jesus Nurturing healthy partnerships betw?en clergy and laify by fully implementing the Lay Ofiajority Ministry Framework Generating a pip¢line of highly motivated deacons and pries15 order to enable the Diocese's clergy deployment strategy Insplrlng chlldren and young people Nurturing children and young people in their lallh and supporting them as disciples of Jesus Christ Holding regular worship that is ac￿sSIble and appealing lo children. young peoplè and their families. Enabling growth in the numbers of leaders of Ghildren and young people Pursuing a slep change in work with those aged 11-16 Facilitating effecb.ve partnerships between churches and local schoo15 The Diocesan Vlslon Prayer Heavenly Father, we embrace Your call for us to make disciples, lo be witnesses. lo grow leaders and lo inspire children and young people. Give ijs eyes to see Your vision, ears to hear the prompting of Your Spirit and Courage ID follow in the foolsleps of your Son, our Lord and Saviour Jesus Christ. Amon Page 2

The BlackbLirn Diocesan Board of Finance Llmlted Annual Report and Finan¢ial Slalem&nls For Ilie eai ended 31 December 2022 The Directors of the BlaekbL)rn Diocesan Board of Finance Limited IBDBFI, who are the Trustees for the purpose ol charity law, piesenl their annual reporl, together with the audlled financial slalemenls, for the year ended 31 December 2022, The diieclors and Iruslees are one and the same and in slgning as trustees they are also signing the strategic report se¢lions in their capacity as directors. This Combined report salislies the legal requirement for.. Dlreclors, Report of a charitable company Strategic Report under the Companies Act 2006 and Trustees Annual RepoTI under th8 Charities Act 2011 LEGAL OBJECTS The BDBF'S principal objective is lo promote, ass1s1 and advanc& the woik of the Church of England, primarily bul not exclusivtrly in the Diocese of Blackburn, by aGling as Ihe Ilnancial executive of the Blackburn Diocesan Synod. The BDBF has the following stalulory functions.. The BDBF has responsibilily for the management of glebe property and investments lo generate income lo support the cost of stipends. 11 is the Dlocesan Authority for paTochial and other trusts and incorporates the functions and responsibilities of the Diocesan Parsonages Board. The BD8F is cuslodlan trustee in relation lo PCC property. STRATEGIC REPORT STRATEGIC AIMS AND OBJECTIVES FOR THE YEAR The main role of the BDBF is lo identify and manage thè financial aspect of the provision of the ministry within the Diocese, so as to provide appropriate personnel and financial resources lo assist the Diocesan Synod, Bishop's Council, deaneries and parishe5 to furlhgr the mlssion and slialegic priorities in the Dk)¢ese. Vision 2026 is an agenda for growth and change lo see 'Heallhy Chur¢hes Transforming Communities, across the Diocese of Blackburn in our centenary year 012026. The Vision was launched In 2015 and over the course of 2020 the Diocese engaged with a 'Vision Llpdale. lo identify what is going well and the challenges we have in realising OUT Vision. Th¢ next phase of th6 implemenlalion plan is available from our website al.. hll S..1￿v.bI3Qkburn.an licark.or Ivision-u d81e. The Directors are aware ol the Charity Commission's published guidance on the public benefit requirenienl in general and, more particularly. in 'The Advan￿ment of Religion for the Publrc Beneliv and liave had regard lo il in their adminislralion of the BDBF. The Directors believe that, by ¢arrylng out these obje¢lives and in promoting the work of the Church ol England in the Diocese of Blackburn. the BOBF helps lo promote the whole mission of the Church Ipasloral, evangelistic, social and ecumenicall more effectively, both in the Dio¢ese as a whole and in its individual parishes, and that in doing so il provldes a benefit lo the public by.. providing facilities lor public worship, pasloral care and spiiilual, moral and inlelle¢lual development, both for ils members and lor anyone who wishes to benelil from what the Church offers,. and promoting Ghrlslian values, and service by members of the Chuich in and to Ihelr communities, for the benofil Of individuals and sociely as a whole. Page 3

The BIAckburn Diocesaii Board of FSnance Limited AnNu81 Report and FlnanGial Slalemeiils For the ear ended 31 December 2022 ACTIVITIES ANO ACHIEVEMENTS IN THE YEAR Vision 2026 ConS￿st5 of the four major building blocks of Ihe Vis1on and activities planned against each.. Making Disciples including.. Developing Whalley Abbey as a cenlrp lor Christian Discipleship and Prayer with a resident praying communily Enabling spiritual dlrection lo be available lo all, lay and ordained, across the diocese Production ol diooesan seasonal daily devotional resources Further rolllng out of the national Parish Giving Scheme and providing advi￿ and training on the effective use of conlaclless giving ancl online giving. In relation lo our main objectives of Maklng Dlsclples of Jesus Christ we.. Have added lo the Making Disciples Team for Ihg diocese, including a new Stewardship Resourcing ONlcer funded by the National Church and a Making Disciples Coordinator. Produced Lent and Advent Devolionals with a 10, 000 circulation cil this high-qualily resource. Hosled regular relroals & courses al lthalley Abbèy including individual and guided relreals, walking, healing and quiet retreats as well as festival ¢tslebralions and suppeT clubs. Built on the progress already made with ¢onlacUess giving and providing training & advice on digilal giving. Take up by parishes of the Parish Giving Scherlle continues lo be encouraging with progress being made towards the largel of Jfo% of parishe5 signed up by 2024. The introduction ol one- off giving al the end ol the year is proving lo be paillcularly successful and an atlracliv8 tool for parishes. Spiritual direction proves lo be an allraclive avenue of discipleship, with 28 splrllual directors within the diocese and 8 training programme is in place lo further develop Ihese numbers. Relaunched the Roots of Fallh. diocesan discipleship progiamme, laughl in person and online, coverlng lop1cs such as 'Doclrine, Church History. Old Teslamenl, New Teslamenl. Being Wltnessgs including.. Inleinal and external investment lo realise the vision 0110 Strategic Church Plants by 2026 Coaching, nebNorking and training as we press ahead lo our goal of seeing 200 New Local Congregations by 2026 Providing tfainlng and neNvorks of support so that people are enabled to share their faith with nlidence A suite of activities lo enable human fl(iurishing through social action Caring for God's creallon with the aspiration lo become an E¢04Jiocese in 2023 In relation lo our main objectives of Being Witnesses lo Jesus Christ.. To reallse our vision of10 Strategi¢ Church Plants, eight plants are now in place and are fruitfully building the Kingdom in their local areas,. the most recent plant is silualpd in Leyland Deanery. To fulfil our goal 01200 New Local Congregations. coaching, netWOTking and training events including the Beacon Course have resulted in more New Local Congregation8 starling. Al the end of 2022. 102 congregations were in place. To enable people lo share their faith with confidence, encouragement lo pray for the building ol the Kingdom together with training and network support has resulted in more nurture courses taking place across the diocese176 noledl. Opporlunilies lo learn from Saints in the past have slrenglhened prayer individually and corporately. Training lor mission end ministry through sport was offored in collaboration wllh the National Eslales Churches Network, Sl Andrew's Page 4

The Blackburn Dlocesan Board of Flnance Limlted Annual Report and Flnancial Statements F-or Ihp ear ended 31 De￿rnber 2022 Leyland, Ambassadors Football, Kick and Scripture Union. Church leaders are demonslraling crEalive ways lo reach out using dlfferent medla. eg. one church transformed their church building into Narnia and iRviled their IoGal cornmunily lo walk through the story 2nd experience the good news in an Inleraclive way. To enable human flourishing. healthy churches are living Kingdom values and providing rich treasures in numerous areas, across all age ranges. including.. dementia support,. debt coullselling,. addressing isolation., jusliee lor those affected by human slavery,. health, hospitality and wellbeing.. heallng,, deliverance.. job skills,. housing., food banks." support for people on the margills., addictions, addllional needs elc. Partnerships with others are growing. For example, the dioc&se Collaborated with the Mothers, Union on a project that enables women lo develop business skills in Burundi. £16,500 has been raised, lo dale. wfth funds sllll coming in. To promole caring for creation, Blackburn Diocese is registered as an EciFdiocese. A baseline for carbon emissions in our dioces0 ha5 been established with support and encouragement provided lo parishes lo complete the Energy Footprint Tool as well as becoming Eco-churches. A nel zero carbon working group has been convened. Dr Ruth Valerio, Global Advocacy and Influencing Director al Tearlund, spoke al our Diocesan Conferencg. Training on Climate Resilien￿ was provided for our dioces8 by the Chur¢h Bulldings Council. Growlng Leaders including.. Continued pursuit of the Lay Majority Ministry Framework Continued development of a diocesan-wide ¢ullure of vocational discernment so that all may hoar God's call and use Ihelr gifts in the sewice of the Gospel Generallng a plpeline tsl hlghly motivated deacons and priests in order lo enable the DIoc8se's clergy deployment strategy In relation to our main objectives of Growlng Leaders lor Jesus Christ we.. Continued the implemenlalion of Lay Majority Ministry strategy Expanded the Aulhorised Lay Ministry IALMI portfolio lo len ministry areas As of year end, 156 Aulhorised Lay Ministers have been commissioned in the fif51 iwo years Expanded the M.. Power programrne lo offer training in 2022123 10 30 people in four locallons {Accringlon, Blackpool. Preston and Lower Datwenl Delivered four conlinulng ministerial education days for Aulhorised Lay Ministers and Licensed Lay Ministers Developed and launched a new inlegraled 5-year start of ministry prograrnme lo support clergy from ordination Ihrough lo the end ol the second year of their lirsl incumbency Successfully obtained national funding lor live additional curacies and four addillonal posts of first responsibilily Inspiring Chlldren and Young People including.. Pursuing a slep change in work with those aged 11-18 supported by a new Youth Resourcing Church and diocesan-wlde new learnlng communitiès Facililaling effective parlnershlps be(weÈll churches and local s¢hools Nurturing children and young people in Ihelr faith and supporting them as disciples ol Je5US Christ Supporting th8 creation of new or renewed toddler groups that shaff the Gospel In relation lo our main objectives ol Inspiring Children and Young people for Jesus Christ we: Commissioned the Board of Education lo enable development through.. Suslainillg a new Learning Comrnunily for Youth Provision building on the Launchpad sessions delivered through the SDF3 resourcing church al Sl Luke's, Blackburn Pago 5

The Blackburn Dlocesai) Board of Flnance Llmited Annual Report ancl Financial Stalemenls For the ear ended 31 De¢embÉr 2022 Delivering Irainlng lo children's and youth workers across the dlocese linked to the ALM programme for growing leaders Creating high quallly resources and training lo equip chur¢hes lo mSnisler to the young Creating high quality school resources for Religious Education, ethos and worship Training and supporting sch(x)Is and churches lo live out Vision 2026 by transforming ctsmmunilies. Investing in addresslng structural Inluslice through the Equity, Diverslly and Justice programme Full details of the a¢livilies carried out are CDntained within Blackburn Di0￿san Board of Educallon Trustee Report. During 2022 the BOBF also.. Carefully monllored spending and income for the diocese lo ensure sustainability. Conliniied lo encourage parishes struggling lo meet their Parish Share requests lo meet BDHF Dire¢lors. ATGhdeacons and BDBF Officers lo discuss Ihebr challenges, conslrainls on Ihelr abS1ily lo conlribule the Parish Share requesled. and inilialives for ministry in a conslruolive and collaborative atmosphere. Engaged in regular Parish Share meebngs lo help parishes with difficulty In conlribuiing share lo agree a positive way fonNard. Wheie satisfied that there was a clear ¢ommilmenl by th8 parishes lo strengthen their discipleship. stewardship and vision planning, and tD meet an adjusted share contribution request, Parish Share meetings were able lo reduce Share requests lor a number of parishes from the parish support fund. Secured funding from the church commissioners in order to build capacity to support work on transforming the diocese. Consulted with deaneries through the Mlssional and Flnanclal Flourishing programme ol meetings designed to Ensure that this a good understanding of what wlll iransfom mlssion and minislry in each area SuppDrted parishes in their mission asplrallons wllh grant fundlng from the Parish Vision Granl and Loan Fund. Continued the roll out of the extensive safeguarding training programme lor clergy and parish officers. Administered a hardship support fund for clergy and church workers suffering financial hardship as a result of the cost ol living ¢risis. The actions outlined above were enabled through a range of adminislralive and legal functions ensuring that the priorities identified within Vision 2026 were facililaled whllsl malnlainillg good governan￿. Persoiinel The Directors are thankful for everyone who contributes lo the life of the DIC￿ese and to the parishes for their conlSnuing linanclal siipporl. The directors would lil<e lo express particular thanks lo all the slafl serving the BDBF, lo our clergy lor their leadership during 2022 and lo the PCCS for their ongoing ¢ommilmenl this last y&ar. The Directors are thankful lo God, for those parishes that oonlinued lo contribute their parish share in 2022 despite difficult economic conditions. Related parties General Synod, Church Commlssloners. Archbishops, Council and Church of England Pensions Board The BDBF musl comply with Measures passed by the General Synod ol the Church of England. 11 pays a donation based oll an apportiollment system lor funding national training of ordinaiids and Pag8 6

The Blackburn Diocesan Board of Flnance Llmited Annu<il Report and Financial Slalemenls For the ear ended 31 Decernber 2022 the activities ol the varioiis national boards and councils, as well as General Synod. The BDBF re¢eives a grant from funds managed by the ChLirch Commissioners. The BDBF pays lor clergy stipends through the Church CommSssK)ners. The stipends of the Diocesan and Suffragan Bishops are borne by the Church Commissioners. The BOBF pays retirement conlrlbulions lor slipendiary clergy and some employees to the Church ol England Pensions Board. Parochial Chur¢h Councils (PCGsl The BDBF is required by Measure lo be custodian Iruslee in rel81ion lo PCC prowrty, bul the Company has no control over PCCS, which are independent chaiilies. The a￿oUntS ol PCCS and deaneries do not form parl of these financial stalemenls. PCCS can influence decision-making within the BDBF al Diocesan Synod level through represenlalions lo those bodies and through the input of Deanery Synod5. Blackburn Cathedral. The Cathedral is a separate enlily lo the 8DBF bul is engaged in many shared missional aims and aclivilies. The Cathedral is the seal ol the Dio¢esan Bishop Blackburn Diocesan Board of Educallon The Board ol Education Is a registered charity. whlch has responsibility lor 195 Church s¢hools across the Diocese and is responsible for the largesl number ol volunlaiy alded schools In the country. It piovides pastoral and professional support lo all ils schools and has particular commitment lo enhancing the quality of provision for ReligioLJS Education, collective worship and the spinlual, moral, swial. and Cultural development of all piipils. The Board ol Education also supports parishes on ¢hildren's work and youth work and has responsibility ft)r chaplains in universities in the diocese. Church based Mulli-A¢ademy Trusts There are three irusls that serve the diocesan ¢hurch schools. These are Cidari Ilhe diocesan Irusl), Leaining Together Trust and The Bay Learning Trust. Each trust has members taken from corporal8 offi¢es ol the Church of England within the Diocese ol Blackburn. FUTURE PLANS We will conlinue lo work on the implemenlalion ol Vision 2026 and seek lo appw for further Nalioiial Church funding lo support the mission and ministry of the diocese. This will include monies lo transform the diocese following the missional and financial Ilourlshing process, monies lo support curacies 2nd other funds that mSghl meet the missional goals of the BDBF. We will continue lo support each strand of Vision 2026. Maklng Dlselples of Jesus Christ The Making Disciples team will help people lo move on in their spiritual formalion through.. Knowing the soriplures beller and equipping ¢onlidenl Christian dis¢iples Praying with greater depth and urgency for the Kingdom of God lo come Offering worship in Spirit and truth through the ministry of word and sacrament Giving generously of our lime, lalenis and money to the cause ol Christ Belng Witnesses to Jesus The Being Witnesses team wlll encourage authentic witnesse5 in the following way5'. Sharing the Gospel of Salvation with Confidence Enabling Human Flourishing through Social Action Page 7

The Blackburn Diocesan Board of Finance Limited Annual RÈport and Financial Slalemenls For the ear ended 31 December 2022 Planting 10 Strategic Church Plants ISCPS) and 200 New Local Congregations INLCS) by 2026 Caring lor God's Creation Growing Leaders for Jesus Chrlsl The Growing Leadeis Team is committed lo la¢ililaling the supply of an abundance of theologically lilerale lay and ordained leaders who, with a ministry rooted in prayer and a deep love ol the Lord Jesus. can support the growth of healthy churches and transform communities. The team will do this by.. Developing a dl(Kesan-wide culture of vocational discernment so Ihal all may hear God's call and use their gifts in the servlce of the Gospel Discerning and forming theologically literate lay and ordained 5eaders, rooled in prayer and with a deep love ol the Lord Jesus NLsrluring healthy partnerships between clergy and laily by fully implementing the Lay Majority Ministry Framework Generating a plpeline of highly motivated deacons and Priests in order lo enable the Dio¢ese's clergy deployment strategy In$plring Children and Young people for Jesus Chrl$t We support the Dlo¢esan commitment lo Insplrlng Chlldren and Young people for Jesus Christ continuing in pailnershlp wllh the Blackburn Dio¢esan Board of Educallon. The DBE will enable and support parishe5 10 inspire ¢hildren and young people by.. Nurturing Chiklren and Young People in their Faith and Supporting them as Disciples of Jesus Christ Holding Regular Worship that is Accessible alld Appealing to child￿n, Young People and their Famllies Enabling Growth in the Numbers of Leaders of Children and Young People Pursuing a Slep Change in work with those aged 11-16 Facililaling Effective Partnerships between Churches and Local Schools-conlinuing lo support church schDDls and academies in Ihts diocese Full d&lails of the lulure activities are contained within the BDBE Truslegs report. Enablers There is additional work completed by the central team on missional and financial flourishing. This locusses on work with deaneries lo look for opporlunilies for growth and direct work with parishes through the Parish Renewal programme. In addition io our general support lor parishes We will continue lo ensure the central management of cases and training in relation lo saleguerding al parish and diocesan level. We will conlinue lo suppoil paii5hes through Treasurar, Church Warden and Clergy Irainlng events during the year. We wlll conllnuè lo support parishes lo contribute their parish Share and support those in difficully. Page 8

The Blackburn Diocesan Board of Flnance Limited Anniial Report and Fiiwi)dal SlalementE For the egr 8nd¢d 31 Decembei 2022 FINANCIAL REVIEW Fliiaiiclal performance The fi'nancial performance of the Charity in 2022 was ¢onsidttred salislaclory. The operational defi'¢ll on the unreslricled fLJnds was £0.061m and was mel from free reserves. Total Unrestricted General Deslgnated £'ooo £'ooo £'ooo Total Income 8.677 149 8.826 Total Direct Expendiluro 13,4401 1781 13,5181 Net Incomel (Expenditure before investments Expenditure in I transfers to other funds from Ljnrestricled fund 5.237 71 5,308 15,3051 1641 15,3691 Operational Surplusl IDeficltl The operational deficit excludes the movement on reslricled funds £2,203,000, endowment funds 1£2,152,0001, nel loss on unresliicled inveslmenls1£924,0001 and other unreslricled recognised gains £179.000 included iii the nel movement in funds1£755,0001. Parisli share, the money given by Paiishes lo the BDBF lo fund the mlssioll and ministry of the Diocese, was again the principal source of funding in 2022. This increased by £0. 16m lo £7.63m (2021.. £7.47m). The Directors thank parishes lor their contributions during Ihe year, and especlally those parishes able meet their share request in full and Ihose that make their parish share payments by monthly instslmenls. 1681 1611 Tho provisSon for oulslanding parish share al the year end is £7.42m (2021.. £7.05mJ. Total income lincluding parish share) before revaluation adjuslmenls lolalled £16.99m (2021.. £13.47m), an increase of £3.52m. Included in the lolal income figure are gains on the disposal of fixed assets of £2.17m (2021.. £1.OTm). Expenditure amounted lo £15.OSm f2021,' £12.87m), an increase of £2.19m. Included in these figures are losses on dbsposal and impairment ol fixed assets of £4,000 (2021.. £193,000). The Slalemenl of Financial Activities ISOFAI for the year shows nel income of £1.94m (2021.. £0.60m) before net gains and losses on the revaluation ol inveslmenls. This is an increase of £1.34m on the previous year. After revaluation adjustments, the nel movement ill total funds amounted lo a reduction of£O.76m f2021.' Incre&se of £2.37m), whi¢h results in a lolal fund balance of £72.43m (2021.. £73. 19m). The nel movement in unieslricled funds is a reduction ol £0.8lm (?021.' an increasg of £1. 12m), which results in a goneral fund balance of £8.52m (2021.. £9.28m) and designated fund balance of £2.98m (2021.. £3.03in). The nel movement in unreslricled funds £0.81 m is made up of the operational delicll £0.06m. nel loss on unreStr￿ted inve51tnenls £0.92m and other unreslricled recognised gains £0.18￿. Balance Shèet Posltioii INhile the nel assets on the balance sheet lolal £72.43m {2021.. £73. 19ml, included in this lolal are freehold land and buildings which ale prirnarily used for ministry 101211ing £40.23m {20?1.' £40.27ml. Much of the iemalllder is lield in reslricled or endowment funds. In 2022 the defined benefit pension defi'cit Is zero12021.' £0.38m is shown againstgeneral funds}. Significant Property Transactiorbs Ouring the year we purchased one lulure parsonage and three curate and asso¢iale vicar houses lolalling £1.43m. Two of the houses were purchased from the reslricled pastoral fund lor £0.47m and two from endowmenl funds for £0.96m. Sale proceeds were ieceived for four viearages of £1.83m, INe Page g

The Blackburn Diocesan Board of Financè Limited Annual Resx)rt and Financial Slalemenls For the ear ended 31 Deceinbgr 2Q22 curate houses of £1.55m and one worship centre £0.13m. The profil from the sales added £1.91m into reslricled funds and £0.26m into endowment funds. Investment Performance The Gharity does not receive ils donalions evenly throughout the year. Some donations or funding grants received are held lor a period prior lo them being required for expenditure. The charily ulilises Nalwesl reserve accounts and CCLA for cash investments. The Board requests a member ol CCLA lo annually allend a meeting of the Investment Committee lo update them on the Board's investment position. The Investment Committee meets al least four limes a year lo review policy and performance. The Board invests in the CCLA Deposit. Investment and Propeily Funds which agaln performed satlsfaclorily over the year in the context of Comparator ben¢hmarks for the sector. Neverlheless 2022 was a difficult year in which the capital value of our investments fell by around 20°k. This eliminated a significant parl of the gains that had accrued in 2021. The Board also manag85 glebè Dn behalf ol the BDBF. The total value ol investmen15 and deposits (excluding cash and investment properly) al 31 December 2022 was £2Jf.53m (2021.. £28.35mJ and the return on investment was 2.90A (2021.. 2.6%). (Income divided by average capital value). The lolal value of investment property al 31 December 2022 was £1.80m12021.' £1.86m) and the return on Inveslrnenl wa5 1.8Yo (2021.. 1. 7Yo). (Nel rental income divided by average capital value). Investinent Policies The BDBF'S investment policies are based on two key policies.. Ethical invaslmenl - the BDBF seeks lo pursue an investment policy consislenl with the values ol the Christian faith. This is achieved by investing in CCLA who follow the policies of the Church of England's Ethical Investment Advlsory Group which are kept under review by the Inveslmenl Committee. For the past lew years, the Diocesan inveslmenl parlller has operated a policy ol not investing in industries that are directly or indirectly drawing revenue from fossil fuel activlty. This po1icy1s already in place and will continue lo be going forward as we seek lo meet a 2030 iargel. Long-lerm responsibilities the Directors are aware of their long-lerm responsibilities in respect of endowed funds and as a result follow a correspondingly prudent approach to investment de¢isions. Investment policy for long-lerrll funds is aimed primarily al generaling a sustainable income with due reg8rd lo the need for preservation of capital value and the possible need lo realise inveslmellls lo meet operational needs. The gleb& investments are held IDr the purpose of raising income lo achieve the maximum contribution possible towards clergy sts'pends on an ongoing basis. Unreslri¢led and reslricled funds are invested to balance income, liquidlly and the relmbursemenl of capltal. Reserves Pollcy The Dlreclors have revlewed the charity's needs for reserves in line with the guldance issued by the Charity Commission. The BDBF has considerable responsibilities, including the romuneralion and housing of, on average, 183 parochial slipendiary clergy and is reliant on the contributions from the parishes ol the DioGeso. Th¢ BDBF aims lo maintain a level ol free reserves for income risk 0140/0 01 Ihree years forecast budgeted parish share, DBF lees and ￿ntaI income and al least three months, Parish Share budgeted expenditure as working capital. This will be held within the Un￿StriCted funds (excluding fixed assets and clergy pension delicill. This is Considered suffioienl lo cover shorl-lerm cash outflows. Cushion non-receipl of Parish Share and any reducllon of Income from DBF Fees and rental incotne. The level of free reserves required for this policy is £4.87m. This policy is reviewed annually considering ihe future and risks ol the BDBF in Ils selling. The level of free reserves al 31 Dectsmber 2022 was £6.84m', this is in excess of the policy by £1.97m. This excess will lo be used lo fund the budgeted delicils for 2023 and 2024. In addilion lo this the charity is looking lo bid for strategic mission and ministry investment funding from Nallonal Church in early 2024. The Directors are Confident in the steps taken lo ensure the lulure going concern of the organisalion. There are several designated funds lolalling £2.98m and the material ones are listed in note 24 on pages 43 and 44. These funds are, in the main, held lo fund future opporlunilies for the BDBF. They are reviewed regularly for appropriateness and levels. Page 10

The Blackburn Dlocgsan Board of Flnan¢e Limited Annual Repori and Financial Slalements For Ilie ear ended 31 December 2022 The BDBF also adminlslers a number of reslricled 2nd endowment funds that are held in specifi¢ trusts under charity law and are not available lor general purposes. As al 31 December 2022 reslricled funds lolallecl £13.19m and endowment funds lolalled £47.74m. A description of each reseive, together with the intended use of the fund is sel out in notes 25 and 26 of the financial slalemenls on pages 44 10 46. Grant making poli¢y Grants are made lo the National Church lo cover 8 proporh'on of ils central costs and the cost of training for ministry (see note 10 lo the financial slalemenlsl. Grants are paid lo olhei connected charities and to other charitable projects which appear lo the Board lo support the lurlherance of the BDBF'S objectives Isee note 16 to the financial statemenlsl. Fundralslng Most of the funds raised by the BDBF are from other charitie5. We provide support and advice lo parishes with their fundraising and raise some funds for other ¢harilies as part of the Bishop's Harvest appeal or from the congregation al Visllalions. Al Ordination setvices funds raised for the BDBF are reslricled lo support those LJndÈrgoing ordination training. We encourage ollline giving by the use of give.net. There is minimal fundraising from the public by the BDBF and this is normally al church services, not by diTecl marketing or using external fundraisers, We have not received any complaints from the public ir) relation lo Dur fundraising aclivilies. PRINCIPAL RISKS AND UNCERTAINTIES Tlie Dire¢lors of the charitable company have overall responsibility for ensurillg Ilial the Charity has an appropriate system of control8, linan¢ial and othe￿ISe. The systems of internal control are designed lo provide reasonable, bul not absolute, assurance against material mlsstalemenl or loss. They include.. an annual budget approved by the directors regular consideration of financial results and cash flows regular review ol internal controls d&l￿allOn of authority and segregation of duties regular Teview and update of risk assessinenls scheme ol delegation The DITeclors have a programme ol risk management lo assess and document business risks and implement risk management slralegies. This involves assessing the types of risks the charlty faces, priorilising them in lerms of potential impact and likelihood of occurrence, and identifying means of miligallng 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, Rlsk and Governance Committee IARGI and ol the annual Ineeling with the Auditors, lo discuss financial and internal control issues. There is no inlernal audit function as il is not consKJered an efficient use of the iesources ol the charity. The risk register has been fully Teslruclured lo ensure beller monitoring ol risk and cascaded responsibillly lor risk management by department. The risk ¥egisler continues lo be reviewed on a six- rnonlhly basis by the ARG and material changes notified lo the d1￿clOr$. Key Rlsks The key risks, which may impact on the charilablfy company, include.. 1. A decline in the payment of Parish Share- the rlsk15 that the BDBF Is unable to meet ils objeclwes due lo financial ¢onslrainls. This may b¢ exacerbaled by the ongoing debates around Living in Love and Faith and the threat ol parishes withholding parish share in consequence. Existing prossures are.. energy costs f()r parishes inflalionaTy costs causing rises lo share that are not allordable cost of meeting the carbon nel zero aspiration Existing Controls regular monilorlng and meetings with those paTishes who need help lo meeting their assessment provision for the shortfall built into the budget pastoral reorganisation lo ensure affordability Pagea1

The Blackblirn DiocÈ5an Board of Flnan¢e Limlted AnniiEJI Report and Flnancial Slalemenls Foi the ear ended 31 December 2022 focus on stewardship free reserves policy 2. A continuing reduction in regular weekly altendanee the risk is Ihal parishes will become increasingly unable lo pay parish share due lo a reduced number of parishioner5 oonlribuling lo their linan¢es,' th& BDBF is therefore unable lo meet ils objectives due lo financial consllalnls. A key aim of Vision 2026 is lo orow the number of people regularly allending their parlsh church. 3. Insufficient care for those who are survivors ol abuse or those under Investigation leading lo self- harm. 4. Challenges over recruilmenl lo multiple roles and potential over work of existing tsmployees could lea(J lo more vacancies and operational failures as well as workforce si¢kness absence. STRUCTURE, GOVERNANCE AND MANAGEMENT SUMMARY INFORMA'fioN ABOUTTHE STRUCTURE 01 THE CHURCH OF ENGLAND The Church of England is the established church with HM The King as the Supreme Governor. 11 is organised into two provinces each led by an archbishop Icanlerbury for thè Soulhein Piovince and York lor the Norlhernl and 42 diooeses. Eacli diocese is a See under the care of a blshop who is charged with the cure of sou15 of all the people within that geographical arèa. A diocese is divided into archdeaconri&s, deangries, benelices and parishes. Benelices may comprise single or multiple parishes and are overseen by a parish priest lusually called a vi¢ar. reclor or prie51- in-ch8rgel. The parish priests are responsible for the 'cure ol souls, in their parish. The Church of England is governed nationally by General Synod as its legislative and deliberative body. 11 comprises ex-officio and elected represenlalives from each diocese, and il agrees and lays before Parliament measures lor the governance of Ihts ¢hurGh's affalrs. which, if enacted by Parliament, have the force of slatule law. Blackburn Diocesè currently has 5 elected clergy members and 6 elected lay memb8rs of General Synod. They were elected in 2021 for a period of five years. In addltion lo the General Synod, the Archbishops. Council has a co()rdinallng role lor the work auihorised 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 dI0￿Se, overall leadership lies with the Diocesan Bishop, who exercises that leadership as Bishop in the Oiocesan Synod which is the slatijlory governing body of the Diocese. Whilst each Diocese is a separate legal enlily, with a clear responsibility for a specific geographical area. being parl of the chU￿h of England requlres and enables each Diocese lo seek support from and applicalK)n ft)r partnership with neighbouring Dioceses. The Diocese of Blackburn was created iii 1926. 11 has an area of 988 squaie miles and encompasses Lancashire with a lew parishes in Wigan Melropolilan Borough. The overall populab'on is approximately 1.3 million wlliin urt)an and rural areas. The DI0￿se of Blaclcburn has two archdeaconries IBlackbLirn and Lancaslerl, each the respcinsibility of an archLleacon. Each archdeaconry has geven deaneries wllh a number of beneliceslparishes grouped geographical￿. An area dean has oversight of the deanery and each deanery has 115 own synod. Within each parish there is a body called the parochial churoh council which is made up of parish priest as chair, the churchwardens, curate and Licensed Lay Ministers il appllcable, and a numbèr of elected members. Each parochial church council is a separate charity. The Cathedral is the mother church of the Dio¢&se, an ecclesiastical corporation until il is certified by the Church Commissioners under the Cathedrals Measure 2021 as a charity. The Cathedral is separate from the BDBF. Copies of ils Iruslees, report and fi'nancial slalemenls may be obtained from the Cathedral Offices, Cathedral Close, Blackburn BB1 SAA. ORGANISATIONAL STRUCTURE The BDBF was formèd lo manage the linanclal affaSrs and hold the asseis of the Diocese. 11 was incorporated on 29 October 1927 as a charitable company limilf)d by membershlp guarantees (No Page 12

The Blackburn Diocesan Board of Finance Llinlted Annual Report and Financial Slalement For the e£r ended 31 December 2022 2254571 and its governing documents are the tvlemorandum and Articles of Association. The BDBF is registered with the Charity Cornmission INQ 2476471. The Charity is a limited by guaranloe company and slalLJlory accounts are filed annually with Companies House and Charily Commission. The members of the company comprise the Di0￿san Bishop, ea¢h member for the lime being of the Bla¢kbLirn Diocesan Synod. including sufficient co-opted lay members in order to ensuie Ilial there is a majority by one of lay membership. Many of Diocesan Synod's responsibilllles have been delegated lo the 8i5hop's Council and standing committee. The members ol Bishop's Council are Ih@ Board of Tiuslees for the charity aiid in company law the Directors. The Directors Comprlse SIX ex-officio members.. the Diocesan Bishop, thè Sullragall Blshops, the two Archdeacons, the Dean of Blackburn Cathedral. Four ex-offi¢io ele¢led positions.. the Chairs and Vlce Chalrs of the Houses of Clergy and Laity ol Diocesan Synod. Three ex-ofticlo appointed positions.. the Chair and Vice Chair ol the Board of Finance and the Chair of tho Propeily Committee. The elected members arè 4 clergy. 2 from each archdeaconry, elected by the House of Clergy and 8 lay members, 4 from each archdeaconry, eleoled by the House of Laily. Two members may be co-opted with the approval of the directors. Elections also look place in 2021 for the Iriennium slailing 1 January 2022 Governance and policy of the BDBF is the responsibillly of the dire¢lors. Corporate priorilies and the overall financial slralegy for the BDBF. In Ils primaiy object lo promote, assist and advan¢e the work of the Church of England ￿[hin the Diocese ol Blaokburn, are agreed by the Direclors and confirmed by Diocesan Synod. The responsibility for ensuring that these priorities and strategies is delivered are delegated lo the Vision Area Leaders. The members of the company meet once a year in the general meeting lo recelve the annual report and financial slalemenls. The Diocesan Synod each year receives and agrees the parish share budget, prepared and approved by the DireGlors. The Directors meet during the year lo lormulale and coordinate policie5 on mission. ministry and finance. Some role llames In the company Incorporate the lille 'Direclor' but, for the purposes of company law, are not directors ol Ihe company. Diocesan Synod has delegated the following functions lo the Directors of the BDBF.. Iransach'ng the business of the Ditscesan Synod when not in session management of the funds and property of the Diocese preparation of the annual Parish Share Budge advising on action needed lo raise the Income necessary lo finance expenditure oversight of expenditure by bodies in receipt of Diocesan Synod's fund5 against eslimales of expenditure approved by Diocesan Synod advlsing Diocesan Synod of the fi'nancial aspects of Ils pollcy and on any other mallers referred lo it,. and carrying oul any other functions delegated by Diocesan Synod. statLItOry gccleslasti¢al boards and commlltees: The Dlocosan Mission and Pastoral Corrimitlee is responsible for the task of approving pastoral organisalion, laking account ol available clergy numbers and making use of new pallerns of mlnislry. 1115 also responsible lor finding appropriate allernalive uses for churches which are 0105ed for publlc worship. The Dlocesan Advisory Committee advises on mallers affe¢ling parishes including churches and places of worship on mallers such as archileclure, archaeology, arl and the hisloiy of places ol worship, the use and care of places of worship and their contents and the care of churchyards. Thè Parsonages Board.. the BDBF is desigllaled a5 the Parsonages Board for the Diocese for the purpose olexercising the Parsonages Boaid's functions undeilhe Repair of Benefi￿ Buildings Measure 1972. The Blackburn Diocesan Board of Patronage. ¢onsliluled under the provisions of the Palronage IBenefi¢esl Measure 1986, is sole or joint patron of a number of benelices. Page 13

Tlie Blackburii Diocesan Board of Finance Limited Ann￿￿￿1 Repoil and Flnan¢ial Slaleinents For Ihe ear emded 31 December 202?. Non-stalutory ¢ommlttè8s: The Strateglc Programme Board is responsible for the oversight of each of the Slralegic Development Fund project boards. These project boaids are accountable lor the spend of church commissioner grant funding and dlocesan funds on project activities and the impact of Ih8se proleGls line with the alms and objectives. The progiainme board scrulinises the work of the project boards in line with the overall objectives of the diocese and diocesan vision. Diocesan Safeguarding Advisory Panel has a Chair independent of Ihe Direclois and is an advisory body offering external oversight and scrutiny lo the dbocese with regard lo safeguarding. The Finance Committee is responsible for the transaction of some ol the business of the BDBF. Within delegated limits il can approve grants and other support and makes recommendations to the Directors in other cases. Tha Membership of the Committee consists Df the Chair and Vice Chair of the B08rd of Finance, the Diocesan Bishop the two Archdeacons and the Chair of Ihe Properly Committee. The BDBF Directors can co-opt up lo six rnembers on the basis ol their expertise, of whom a minimum of 3 musl 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 8DBF, including selling the policy for their purchase, sale, repalr and maintenance. The committee has delegal&d authority lo authorlse repairs wilhln an agreed budgel and lo buy and sell property and land vested in the Board of FSnance for diocesan purposes. 11 is also responsible for determining policy and making major decisions concerning the management of glebe properly and inve51menls lor the benefit ol the Blackburn Diocesan Stipends Fund. The Investment Committee meets on a regular basis lo Consider diocesan investmenly, lo &djusl the portfolio within parameters agreed by the Dlreclors and lo make recommendations lo the Directors. The Audlt, Governance and Risk Commlttee has a Chair independent ol the Directors and is responsible for assisting the Directors in the discharge of their responsibilities for a¢counling poli¢igs, risk managemelll, Inl8rnsl control and financial reporling, including liaison with the auditors. The HR Committee deals with sensilwe and other mallers in relation to employed staff which cannot be considered by the full Board, partly because of Iheii confidential nature and partly because ol lime pressures and includes two directors lone lay and one clergy) and four membeTS co-opted for Ihelr HR expertise. 11 has delegated authority lo approve most HR policies. The Budget Scrutlny Committèe assists the Bishop's Budget team in drawino up Ihe annual draft budgets for approval by the Directors prior lo submission to Diocesan Synod. Dlroctois, IndLl¢tlon Directors are given an induction file when first appointed. Explanations are given in Directors, meetings to provide continulng Irainln9 and Directors are encouraged lo ask questions in order to develop their understanding of the charity. If additional lllformalion 15 required, il is brought lo the allenlion of directors and the directors, induction file updated accordingly. Directors undertake training al the slarl of trach Iriennium. Rgmuiieratloi) of key management personngl Thè salary scale of the DiDcesan Secrelary is determined by the Chair ol Ihe BDBF and the Diocesan Bishop following advice from the HR Committee. Any anniial award is in line with the other ernployed staff salary increase. The salary levels of other key management personnor and all furlhor posts aro sel by a job evaluation system, Annual pay increases are considered and approved as parl Dflhe budgeting piocess. They are considered by the HR Gommillee prior lo implemenlalion. An adjuslmenl, if required would be recommended lo the Board of Finance. Fiinds held as custodian trustee The BDBF Is custodian Iruslee of sssels held on permanent Irusl by virtue of the Parochial Church Councils {Powersl Measure 19of6 and the Incumbents ancl Churchwardells ITruslsl Measure 1964 where the managing trustees are parochial chuich councils and olhers. These assels are not aggregal&d in the linan¢ial slal8menls as Ikie BDBF does not control them and these assets are held separately to those of the BDBF. Page 14

The Blackburn Dioc8$an Board of Finance Limited Annual Reporl and Financial S1818m&iils For the ear ended 31 December 2022 PCC trust investment assets held by the BDBF had a market value of £1Jf.42m al 31 Deoember 2022 12021.. £17.30ml Dtrlalled cerlilicales of holdings were sent lo parishes Ic. 1,500 accounts) and other managing Iruslees of the respective charities as requested al 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 tho financial stalenienls in accordance with applicable law and regulations. Company law requires the Directors lo prepare financial slalemenls for each financial year. Under that law the Directors have elected lo prepare the financial slalemenls in a¢cordan¢e with Unlled Kingdom Generally A¢cepled Accounting Prackn'¢e Iuniled Kingdom Acoounling Siandards and applicable lawl. Under company law the Directors musl not approve the financial statements unless they are satisfied that they give 8 true and lair view of the slate of the affairs of the BDBF and of the surplus or deficit of the BDBF for Ihal period. In prepaiiiig these financial statements the Oireclors are required lo.. Select suitable accounting Policies and apply them consislenlly Observe methods and principles in the Ghafilies SORP Make judggmenls and eslimales that are reasonable and prudènt Slate whether applicable accounting standards have been followed, Subject lo any material departures disclosed and explained in the linancbal statements Prepare the fir)an¢ial slalemenls on the going concern basis unless il Is inappropriate lo assume that the company will continue in operation The Directors are also responsible for keeping proper a¢counliTrg records that disclose with reasonable accuracy al any ts'me the financbal posilion ol the 8DBF and enable them lo ensure that the financial statements comply with the Companies A¢1 2011. They are also responsible lor safeguarding the assets of the BDBF ancl hence lor taking reasonable steps for the prevention and deleolion ol fraud 2nd other irregularities. The Directors are responsible for the maintenance and Integrity of the corporate and fi'nanclal information includttd in the BDBF'S website. Legislation in Englandlwales governing Ihtr preparation and diss&minalion of financial slalemenls and other information included in Annual Reports may differ from legislation in olherjurisdiclions, STATEMENT OF DISCLOSURE TO THE AUDITORS So lar as the Directors are aware.. a. there is no relevant audit information of which the charilable company's Budilors are unaware and we have taken 811 the steps that we ought lo havè taken as Directors in order lo make ourselves aware of any relevant audit information and lo establish that the charitable Company's auditors are aware of than information. APPOINTMENT OF AUDITOR The re-appointment ol Haysfnacinlyre LLP as auditors lo ihe BDBF wlll be proposed al the Annual General Meeting. Page 15

The Blackburn Diocesan Board of Finantte Limited Annual Report and Financial Sl8lernenls For the ear onded 31 December 2022 ADMINISTRATIVE DETAILS Reglstered Address Diocesan Offices, Clayton House, Walker Oftice Park, Blackbuin BB12QE TrusteeslDlrectors Ex.Officio Rl Revd J T Henderson Rl Revd P J North RIRevdJLGDuff Very Revd P Howell-Jone5 Ven M C Ireland Ven D Picken (resigned 31 August 20221 Ex-officio elected position Mr R J Collins MrTDCox Revd P A Lillicrap Revd Munawar Din lappoinled 01 JanLJary 20221 Ex-officio appointed Mr D Barlow MrNPAves Revd Canon A G Sage (resigned 14 December 20221 El8ct8d Clorgy Revd Dr R B Aechln&r Revd Canon S Cox Revd Canon A Holliday Revd Canon A S Horsfall lappoinled 01 January 20221 lappoinled 01 January 20221 lappoinled 01 January 20221 Ele¢t&d Lay P8rsons DrACarter Professor R Carler Mr M Gaidner Mr P J Ronson Ms J M Stamper Mr D J Wilkinson Mrs Alison Wnne lappointed 01 Januaiy 20221 lappoinled 01 January 20221 Key managemont pèrsonnel and advisprs Diocesan Secretary Canon S Whillaker Ilnterim from 10 January 2022., appointed lo position on 10 March 20231 D2puty Diocesan Secretary Mrs R McGaughey and Head of Flnance, ompany Secretary Solicitors Anthony Collins. 134 Edrnund Street, Birmingham. B3 2ES Ecclesiastical Insurance Office, Beaufort House, Brunswick Road, Glou¢esler GL1 1JZ Insurers Bankers National We51min51ei Bank. 35 King William Sl, Blackburn BB17DJ Investment Asset Managers CCLA Investment Managernenl Lld, Senator House, 85 Queen Victoria Sl, London EC4V 4ET Reglstered Audltor Glebe and Land Ageiit Haysmacinlyre LLP, 10 Queen Street Place, London EC4R 1AG Ingham & Yorke, Hunlroydo Eslale Office, Padiham, BB12 7QX Page 16

The Blackburn Diocesan Boaid of Finance Limited Annual Report and Financial Slalemenis For the eai ended 31 Decemb8r 2022 ATTENDANCE OF DIRECTORS AT MEETINGS IN 2022 Total 315 617 517 117 317 717 Ex-officio Rl Revd J T Henderson Rl Revd P J North RIRevdJLCDuff Very Revd P Howell-Jones Ven M C Ireland Ven D Picken Ex-officio elected position Mr R J Collins MrTDCox Revd P A Lillicrap Revd Munaw3r Din 717 617 517 517 Ex.Officio appointed Mr D Barlow MrNPAves Revd Canon A G Sage 717 717 417 Elected Clergy Revd Dr R B Aechlner Revd Canon S Cox Revd Canon A Holliday Revd Canon A S Horslall 517 717 717 Elected Lay Persons Dr A Carler Professor R Carler Mr M Gardner Mr P J Ronson Ms J M Stamper Mr D J Wilkinson tVlr5 Alison Wynne 617 417 717 517 717 517 By order of the Board approving both the Dlrectors, Report and Strategic Report vP4•. Wlr D Barlow ch8ii.of the Board of Finance MrNPAves V￿e-chair0f the Board of Finance 09 September 2023 Page 17

The Blackburn Diocesan Board of Flnance Limitèd Aniiual Report and FlnanGlal Slalpinenls For the eai ended 31 Oecember 2022 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLACKBURN DIOCESAN BOARD OF FINANCE LIMITED Oplnlon We have audited the linaii¢ial slalemenls of The Blackburn Diocesan Board of Finance Limited for the year ended 31 December 2022 which comprise the Statement ol Financial Aclivilies, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement. and notes to the financial slatemenls, including a summary of significant accounting policies. The financial reporting framework Ihal has been applled in their preparation is applicable law and United Kingdom A¢¢ounling Standards, inclvding Flllancial Reporllng Standard 102 The Financial Reporting SlandaTd applicable in the UK and Republic of Irelalld (Ulliled Kingdom Generally At￿pIed Accokjnling Praclicel. In our oplnion, the financial slalements.. give a Iiue and fair vlew of the stale ol the Gharitable company's affairs as al 310ecember 2022 and of the charitable company's nel movement in funds, including the income and expendllurè, for the year IF>en ended., have been properly prepared in accordance with United Kingdom Generally A¢¢¢pted Accounting Practice., and havtr been prepared in accordance with the requirements of the Companies Act 20￿. Basis for opinion We conducted our audit In accordance wllh International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilib.es under those standards are further described in the Auditor's responsibilities lor the audit ol the financial slalemenls section of our report. INQ are independ&nl of the charitable company in a¢¢ordance with the ethical reqliiremenls that are relevant lo our audit ol the financial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiremenls. We believe that the audit evidence we have obtained is suffi'cient and appropriate lo provide a basis for our opinion. Conclusions relating to goSny concern In auditing Ilie liiiancial statements. we have concluded that the trustees. use of the going concern bas1S tsl accounting in the preparation of the financia5 slalemenls is appropriate. Based on the work we have perlormed, we have not Idenllfled any malerlal uncerlalntles relaling lo events or condition5 that, individually or collectively, may casl significant doubl on the charitable company's ability lo continue as a going concern for a period of al least twelve months from when Ihe financial slalemenls are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this ￿port. Other Information The trustees are responsible for the other information. The Dlher information comprise5 the information included in the Annual Report. Our opinion on the financial slalemenls does not Cover the other information and, except to the exlenl olherwlse explicitly slated in our report, we do not express any form of assurance conclusion Ihereon, Ir) connection with our audit of the financial slalemenls, our responsibilily is lo read the other inforrnalion and, in doing so, consider whelher the olher information is materially inconsislenl with tlie financial slalemenls or our knowledge obtained in the audit or olhetwise appears to be materially miBslaled. If we identify su¢h material inconsi5tellcies or app&￿ nl material misstatements, we are required to determine whether there is a material misslalemenl in the financial slalemenls or a matèrial misslalemenl of the other Informalion. If, bas*d on the work we have performed, we conclude that there is a material misstatement of this other Information, we are required lo report that lacl. We have nothing lo report in this regard. Opinions on othei. matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. Page 18

The Blackburn Dlocesan Board of Flnance Llmlted Aiinual Report and Financial Slalemenls For the eai ended 31 Decembcr 20?.2 the information given in the Annual Report Iwhlch includes the slraleglc report and the dire¢lors' report prepared lor the purposes of company law} for the financial year for which the linanclal slalemenls are prèpared 15 consislenl with the financial slalemenls., and the strategic report and Ihe directors, report included wilhln the Annual Report have been prepa￿d in accordance with appli¢abl@ legal requirements. Matters on whlch we are required to report by exception In the light of the knowledge and underslandlng of the charitable company and its environment obtained in the course of the audit, we have nol identified material mlsslatemenls in the Annual Report Iwhich incorporates thè strategic repoil and the directors, reporll. We have nothing lo report in respect ol the following mallers in relation lo whlch the Compani&s Act 2006 requires us lo report lo 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 usl.. or the ¢harilable company linan¢ial slalements are not in agr6emenl with the accounting records and returns., or certain disclosures of Iruslees. remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit Responslbilities of trustees for the financial statements As explained more lully in the Iruslees, responsibilities slalemenl sel out on pagè 13, the Iruslees (who are also the diieclors of the charitable company for the purposes of company lawl are responsible lor the preparation of the financial slalemenls and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary lo enable the preparation ol financial slalemenls that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial slalemenls, the Iruslees are responsible lor assessing the charitable company's ability lo continue as a going concern, dlsclosing, as applicable. mallers related lo going concern and using the going concern basis of accounting unless the Imslees either intend lo liquidate the charitable company or lo cease opeTalions, or have no realislio allernalive bul lo do so. Auditor's responsibilities for the audit of tho flnanclal statements Our obje¢lives are lo obtain reasonable assurance about whether the financial slalemenls as a whole are free Irom rllalerial misslalemenl. whether due lo Iiaud or errnr, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an aud51 conducted in a¢¢ordance with ISAS IUKI will always deleGI a material misslalemenl when il exists. Misslalements can arise from Iraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to Influence the e¢onomiG decisions of users taken on the basis of these financlal stalemenls. Irregul8rili&s, including fraud. are instances of non-compllance with laws and regulations. We deslgn procedures in line wllh our responsibilities, outlined above. lo delecl material misslalemenls in respecl ol irregularities, including fraud. The exlenl lo which our pro¢gdures are capable ol delecling irregularilles, including fraud is detailed below.. Based on our underslandlng of the charitable company and the environment in which il operates, we identified that the principal risks of non-compliance with laws and regulations related lo the Companies Act 2006 and the Charities Acl 201 I at)d we considered the exlenl lo whi¢h non-compllance might have a material eflecl on the financial slatemenls. We also considered other faclois such as income lax, payroll lax and sales lax. We evalualfjd managemelll's incentives and opporlunilies for fraudulent manipiilolion ol the financial slalements lin¢luding the risk ol override of conlrolsl, arid concluded that the risk was low. Audit procedures performed by the engagement team included.. Page19

The Blackburn Diocesan Board of Finanee Limited Annual Report and Flnan¢ial %lalemenls For the eai ended 31 DeGetnber 2022 Discussions wilh management including consideration of known or suspecled instances ol non- compliance with law5 and regulation and fraud.. Evaluating management's controls deslgned lo prevent and delect irregUla￿lIeS.. Idtsnlifying and lesling journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual des¢riplions', and Challenging assumptions and judgements made by management in their crflical accounting eslimales Because ol the inherent limllalions of an audit, there is a risk that we wll not detect all irregul8ri1ies. including those leading lo a material misstalemenl in the financial stalemttnls or non-compliance with regulation. This risk increases the more that compllance with a law or regulation is removed from the events and Iran5aclions rèflected in the financial slalemenls, as we will be less likely lo become aware ol instances ol non-compliance. The risk is also greater regarding irregularities o¢curring due lo fraud rather than error, a5 fraud involves Intentional concealment. forgery. collusion. omission or misrepresenlalion. A furthèr description ol our responsibilities for the audit of the financial stalemellls is located on the Financial Rèporting Gouncil's website al.. www.lrc.or .uklaudilorsres onsibililies. This description lorrns parl of our auditor's report. Use of our report This report is made solely lo the ¢h8rilable ¢ompany's members. as 8 bDdy, in accordance with Chapter 3 of Parl 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the oharilable company's members those mallers we are Tequired lo stale lo them in an ALJdilor's report and lor no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the chariiable company and the charitable company's members as a body, loi our audit work, for this report, or lor the opinions we have formed, Adam Halsey (Senior Slalulory Audilorl For and on behalf of Haysmacinlyre LLP, Stalulory Auditors Dale.. 21 September 2023 10 aueen Street Place London EC4R 1AG Page 20

The Bla¢kburn Dlocesan Board of Finance Llmlted Aniiual Report and Financial Slalemenls For the e@r end8iJ 31 D¢¢¢mbei 2022 STATEMENT OF FINANCIAL ACTIVITIES lor the y&argnded 31 Dgcembei"2022 Total funds Unrostricted funds Deslg- ReslTIGted nated funds £000 £000 fund5 EndowiDent lunds £000 General £000 2022 £OOD 2021 g(KJo Notg Income and endowmgnt$ frorn-. Dtrnallons and legacies 7,626 7,626 7.469 Ar¢hbishops' Counoil and Church commis¥ioners Olh91 Cliarltable ocllvltl8s: stalulory f88$, chaplalncy and olhèi Incoffl 265 4,624 107 4,679 358 2,751 317 136 190 216 276 5J4 221 515 1,908 724 437 803 2,165 728 377 732 1.094 Inveslmeiils other 13 257 Total Income and endowments 8,677 149 7,909 257 16,9g2 13,468 Expenditure on.. R8lslng fund5 Charllablo acllvltles Othar 301 3,139 18 11,616 319 14.733 264 12,410 193 78 Total Expendltuie io J,440 76 11,534 15,066 12,867 Not In¢omgllexp&ndl¢urel b9for9 Investments 6.237 71 13,6251 253 1,93E Nel Ibssygaln8 on Inveslmants 18 11,9091 12,8701 3,￿7 Ngt Sncomtrllbxpendlturg) bpfore transfers Transfers betsvgen funds 4,37 15,3051 13.6621 6,865 11,6581 14961 19341 3,898 72 Net In¢omèlloxpèndltuYel before other r8¢ognl$ed galn5 2nd losse5 19341 2,203 12.1621 19341 3,698 Other r8cognlsed galnslllosse$l Gainlllossl on revaluation ol fixed assets Galnlllossl on dellned benefll penslon sch8m8S 253 179 179 1221 Nel movement In funds 17551 2,203 12,1621 17551 3.929 Reconclllaiion of ftsttds Total fiinds al 1 January 2022 9,275 2.033 10.987 49,894 73.169 69,260 Total funds at 31 DeGemb8r 2022 8,620 2,982 13,190 47,742 72,434 73,189 All aclivitles deriv6 from continuing aclwllies. The notes on pages 25 to 55 form part of the financial slalernenls. Delai18 of comparative figu￿912021) for the Slat8rnenl of Financial A¢livitles by fund are disclosed in ntste 30. Pagè 21

The Blacl(burn Dlocesan Board of Finance Limlt&d Annual Report and Fiiiancial Slalemenls For Ihe ear elided 31 Deceniber 2022 INCOME AND LXPENDITURE ACCOUNT for the year end@d 31 D&c6mb8r 2022 2022 £000 2021 £000 Total Incomè Total expenditure 16,735 115,0521 13,263 111.4751 Operatlng surpluslldeficltl for the year Nel Ilossesllgains on investments 1,683 19611 1,788 1,025 Net income for the year 722 2.813 other comprehensive income.. Net asset5 transferred from endowments AGILiarial gain51{10$5esl on defined benefit pens1on scheme5 496 179 1,027 (22} Total comprehensive Income 1,397 3,818 The income 2nd expenditure account is derived from the Statement of Financial Activities with Inovemenls in endowTTrenl fund5 pxcluded to comply with company law. All In¢ome snd expendlture Is derived from conlinuino aCt￿l￿£S. Page 22

The Blackburn Dlocesan Board of Finance Limited AnnLial Report and Financial Slalemen15 For Ihe 2ar ended 31 D8ceinber 2022 BALANCE SHEET al 31 Decgmber2022 Nole 2022 2021 £000 £000 £000 £000 Flxed A8S8ts T8ngible Assels Inveslinenis Inveslmenl Pioperty 17 18 78 40,22S 21,814 1.799 40,271 24,694 1,861 63,838 66,826 Current assets Stocks Deblors lafflounls ￿c￿Vable after more than one year.. £14,00012021..£ 608,oonii Deposib and Cash at bank and in hand 19 2,225 2.018 8,055 6.202 10.281 11,5281 8.221 19001 Cr8dltors.' atnounts falllng due ￿thIn one year 20 Net current ass&ts 8.753 7,321 Creditors.- amounts falllng due after rnor8 Ihan one year Provlsl(Ins for Ilabil*t18s'. Pensions and slmllar obligalons 20 15751 83) 11571 1958} Net A588t8 23 72,434 73,189 Capital and Resorves Endowrnenl funds llnc1L￿1nY Investment woluation ￿seN￿of E7.329,000 (2021.. £9,282,00011 Reslri¢ted lund5 Ilncludlng In¥tBknenl revaluation re$￿ve 01£15.000 12021.. É52.00011 Unreslricled liinds- General (In￿ts￿l￿g Inveslment revalualioIi ol £3,494.ODD12021.. £4,259,00011 Unreslri¢led funds- Deslgnaterj Ilndudino InveslTnanl rev81uation resewe of £216.Q(KTr 12021.. £274.00011 26 47,742 49,894 25 13,190 10.987 24 B,520 9,275 24 2.982 3.033 72,434 73,189 The notes on page5 25 10 55 form part of the financial 51alemellls. These financial statements were apprtsved by the Directors and were signed on their beliall on 09 September 2023 by.. Mr D Barlow Chair of111g Board of Financ8 rNPAves Vice-ohair of Ihe Board of Finance The Bl8ckburn DI0￿$an Board of Flnance Ltd Is a company limited by guarantpe registered in En9land and Wales {no. 225457) Page 23

The Blackburn Diocèsan Board of Finance Limited Aiinual R8POrt and Finaiicial Slatetnenls For the car endod 31 Oe¢embei 2022 CASH FLOW STATEMENT for Ihe year ended 31 December 2022 2022 £000 2022 £oDo 2021 £(x)o 2021 £000 NelNnGom8 beTor¢ otherrecognlserlgaiFJS aTrdloss&s IGalnsVLosses on disp0531 of ￿￿ed B55ets IGalnsVLossgs on di$pos810l invesiments DepreGialion Decrea5ellincroa5el In slrtk Ilncresse)Ideueas8 In d8blor8 IDecraa$elnn¢iea$È In cr8diloTS currenl IL4blliilès Movement in panslon commilmenl 1,936 12,1681 601 195n 119) 159 57 16361 210 12041 (1521 1329) Casli 1oulllowlnllowf￿M oporallngéctlvltles 17991 11,0941 Notlncoffie Invesllnuacllvlties Piir¢h¥$e ol largibk fixed assels Pioceeds of ¥al(i of fL¥ed assets Purchase ol InveslTNeDts PIQ￿e￿5 of of Inv8$tmanis 11,5041 3,660 12,3011 3,334 82 149 Nel Cash Inllowlouttlowj from Investlnuacllvllles 2,223 1,170 Nel cash Inflow/(outtlowJ from fiNJandny8ctlvltles Repayrnenls ofboirowing Loan repayments recelved Nw I0￿S 1132) 62 (811 430 (zsh influrfoulflrMI from finandng S£1￿￿[86 429 11511 IDBcreasellln¢roase In casl) In tho year 1,853 (751 Cash and cash equlval8nts at the beginnlng of Ih?yoar 6.202 6,277 Cash and Cash oqulvalents atthB end Oft￿yoar 8,055 6,202 Analysis of cash and cash eqiilvalents 2022 £oDo 2021 £000 Cash In hand and al bank Short leim dep05iis 4.337 3,718 2,542 3.660 8.055 6.2Q2 Tho notes on pages 25 to 55 form part of the financial statements. Page 24

The Blackburn Di0¢8san Board of Finance Llmiled Aniiual Report Finaiicial Slalemenls For Ihe ear ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS (forming partof the fin8ncial statements) 1. Accounting pollcies The following accounting poli¢ie5 have been applied Gonsislenlly in dealing with items which are considered material in relation lo the charitable company's linan¢ial slalements. Basis of preparation The financial slalemenls have been prepared Sn accordance with the Companies Act 2008, the Charitie5 SORP (Second Edition, effective 1 January 20191 and applicable a¢counling standards FRS102, and under the historical cost ¢onvenlion adiusled for the revaluation of cerlaln fixed assets. The Directors are satisfied that there arè no material uncerlailllies about the Charitable company's ability lo continue in operational existence lor the loreseoable fulure. The Trustees believe they have sufficient reserves lo allow lime lo adiusl the operations of the chariiable company lo meal changed cir¢umslances relating lo inflation and energy Costs. Accordingly, they continue lo adopt the going concern basis in preparing the Trustees, annual report and financial slalements. The Directors believe Ihal the charitable company is a public benefit enlily. Crltical accountlng Judgements andkgy sources of estlmatlon uncertainty In the application of the accounting policies, trustees are ￿quired lo make judgement, eslimales, and assumptions about the carrying valiie of assets and liabilities that are nol readily apparent from other sources. The eslimales and underlying assumptions are based on historical experience and other factors that are consid8red lo be ielevanl. Actual results may differ from these eslimales. The esliinales and ullderlying assumptions are ieviewed on an ongoing basis. Revisions lo accounting eslimales are recognised in the period in whiGh the estimate is revised il the revision affects only that period, or in the period ol the revision and fulure porlods if the revision affected current and future periocss. Judgements made by the Trustees, in the application of these accounting ptslicies that have significant effect on the financial slalemenls and eslimalès with a significant risk of material adjuslmenl in the next year are deemed lo be in relation to the depreciation rates of langlble fixed assets and the assumptions used in determining the value ol the pension scheme defi'cit. In the view of tho Trustees, no assurnplions concerning the future or eslirnalion uncertainly dffecling assets or liabilities al the balance sheet dale are likely to result in a material adjustment lo their carrying amounts in the next financial yeai. Fixed assets and depreclatlon Assets with a value in excess of £500 are capilalised. Depreciation is provided for on the jointly owned Diocesan Offices and Whalley Abbey Retreat and Conference Houso. No other depreciation is provid&d on the charitable ¢ompany's freehold buildings including parsonage houses lexplanalion regarding parsonage houses is included in nolo 181 as the depfftcialion charge is immaterial. Freehold land is not depre¢ialed. As il Is the charitable company's policy lo maintain houses lo a high standard, in a¢cordance with a planned approach lo repair and maintenance, such properlies mainlaln residual dlsposal values in aggregate at lessl equal lo their book values. The charitable ¢ompany will perform annual impairment lesling of asse15 on which depreciation is not provided lo determine whether residual values ol housing properties in aggregate continue lo exceed caiiying value. The Company holds all Heritage assets al an accurate valuation wherever possible. VVh&re not PO55ible they are held al depre¢ialed value. Page 25

The Bla¢kburn Dlo¢esan Board of Finance Limited Annudl Report and Finsncial Slalemenl$ For Ihp ¢ar ¢ndod 31 December ?022 Depreciation Is provided lo write off the Gosl le55 th¢ eslimaled residual value of other tangible fixed assets by equal inslalmenls over Iheii estimated useful economic lives as follows.. Leasehold properly 30 years or, if shorter, the remalnder of the lease term Diocgsan Offi'ces 50 years on properly 20 years on remodelling 15 years to a residu81 value of £500,000 4-10 years 15 years Whalley Abbey Retreat and Gonference House Fixtures, fillings and ollice equipment Heritage asset FNxed asset investments Fixed asset investments are staled al market value at the balance sheet date. Movements in market value arising during the year are shown as Unrealised gains or losses on fixed as5el investments in the Statement of Financial A¢tsvilies. Investmenl prop&rtl8S Investment properties ar8 included al their fair value. Glebe land is recognised as hel(t for inve51menl purposes when il is held lo rent out or there is a slgned dovelopers agreement. stocks Stocks are slated al the loweT of Cost and nel realisable value. Income Parish ¢ontrlbutAons Income includes amounts recelved from Parochial Church Counclls in respect of parish share for general, stipends fund and parsonage house fund assessments. Parish share is re¢ognised in the accounts when there is evidence of enlillement. receipt is probable and Ils amount can be measured reliably. Incoine from Archbishops, CounGII and Church CommAssion8rs Money from National Church Inslilulions is re¢ognised when enlillèmenl is probable. otherdonations, grants, legacles and slmllar income Grants and donations receivable towards the cost of additions or improvements lo freehold buildings are credited lo income in the period to which they relate. Other grants are recorded as income when enlillemenl is probable. Other donations are recorded as income when received. other tradlng activitles The income from these source8 is recognised on an accruals basis Investment In¢ome Investment Income is recogni5ed on an accruals basls. Expenditure Expenditure has been charged lo the Slalemenl ol Financial Aclivilies on an accruals bas15. Expenditure relatlng directly lo the objectives ol the chaiily is shown as direct charitable expendilure. Grants payahla Grants payablg are debited lo expenditure when the charitable company has a wnslruelive obligation lo pay. Pagd 26

The Blackburn Diocosan Board of Flnance Llmlled Annual Report dnd Financial Slalemenls For the ear ended 31 Decembgr 2022 Wjinistry In Parishes Ministry in Parishes includes the stipends, Nl, penslons. housing costs and any dire¢l expenses paid by the ch8rilable company for ministers localed in parishes. Ministry Support Ministry Support includes the costs of the charitable company that provide either a direct service lo the parishes or lo the communlly ol the paiish. 11 also in¢ludes the National Tralning costs paid lo National Church lor the training of Ordinands and the ¢osls ol Whalley Abbey the retreat house of the Diocese. Support and Governance Costs Governance costs includes audit lee, Iruslee meeting expenses, Di0¢05an Synod expenses. Blshop's Council expenses and an allocation of costs based on eslimaled lime spent preparing slalulory information and for governancel slraleglc issues, by the Finance Team. Diocesan Secretary and Support Services Tearn. Support includes the costs of the finance team and general management not included under Govern8nce costs: Support costs have been allocated based on an estimate of lime spent in each area. Taxation Th& Blackburn Diocesan Board of Finance Limited {by guarantee) is considered lo pass the lesls sel out in paragraph fj Schedule 6 Finance Act 2010 and therefore il meets the definition ol a charitable company for UK Corporation Tax purposes. Accordingly, the charity is potentially exempl frtsm laxalion in respect of incorne or capital galns received within categorie8 Covered by Chapter 3 Part11 Corporation Tax Act 2010 or Seclion 256 01 the Taxallon of Chargeable Gains Act 1992, to the exlenl that such income or gains ale applied èxclusively lo Charitable purposes. Penslons The charitable company operates a deflned contribution pension s¢heme. The as5els of the scheme arg held separately from those of the charitable company in independent5y administered funds, The amount charged in the Slalemenl ol Financial A¢livilies represents the contributions payable lo the scheme in Tespecl of the a¢¢ounling period. The charitable company also parlicipales in the Church WorkeTS Pension Fund and the Church of England Funded Pension Scheme (see note 151. The assets of the defined benefi't pension schemes are held separately from the charitable company in independently administered funds. The pension costs charged as expenditure represent the 8DBF's contributions paid in respect DI the a¢¢ounling period, in accotdance with FRS102. Delicil funding lor the pension schemes to which the BDBF p2rlicipales is accrued al ¢urrenl value. Fund accounting Funds held by the charitable company are either.. Unreslricled gEneral funds- these are funds which can be used in accordance w(Ih the charitable objects 81 tt)e discretion ol the Iruslees. Unrestricted designated funds these are funds Sel aside by the Iruslees out of unreslrlcled general funds for specific fuluTe purposes or projects. Reslriclod ftinds- these are funds that can only be used for particulai reslricled purposes within the objecls of the charilable company. Reslriclions arise when specified by the donor or when funds are raised for particular reslricled purposes. Endowm8nl funds- Ihls is capital, held In perpeluily lo create income for specified purposes. Further explanation of the nature 2nd purpose ol each fund is included in the notes lo the financial slalemenls. Page 27

The Blackburn Diocesan Board of Finaiiee Limitèd Annual Report and Financial Slalemenls For the ear ond¢d 31 December 2022 Where a grant or donation is receiveLI lo fund a capital ilem or where an asset is donated, if there is an obligation relating lo the lulure use or retention ol the relevant asset, the balance relating lo that asset is held within r8slriGled lunds as long as that reslriGlion exists. Where there is no such reslri¢lion, the income relallng lo the purchase ol capital items is transferred lo unresliicled funds in the Statement of Financial Aclivilies. 2. Archbishops, Council and Church Commissioners Total funds 2022 £000 Tol81 fufids 2021 Unrestrlcled fund Re5triGted Endowment Genèral Deslgnaled funds Fiin(ts £000 £000 £000 Éooo Lowest Income ¢￿u￿11￿5 Fundillg Energy C051B Grdnl Resourciw Ministerial Educatlon IDGk Giant sir&t8gk Mlnislry Fiind Slfalegk Capaclty Fundlng strateg￿ Dtvelopmenl Furyling Clergy haidship grant P351 Cases Review 2 Funding 1,402 431 1,402 43fj 1,355 221 379 2Z1 379 271 2,103 72 12 213 88 853 2SS 2,103 72 30 256 4,624 4,879 2.751 3. Other donations Tot81 funds 2022 £000 Total funds 2ff21 £ODO 156 69 92 Unrestrictèd Funds General Designated EODO 120 Restrlcled Endowment FLinds Funds £000 ÉODO £OOD 45 21 Benefact Trust Donations Other Giants Laya¢ie8 165 65 28 79 3Y 10 36 107 358 317 Page 28

The Blackbiirn Dlocesan Board of FSnance Limiled Anniial Repart and Finaiicial Slaleinenls For IhE ear endod 31 Decefflber 2022 4. Charilabltt acllvilies Tv141 Urir6slrl¢led Funds Goneral Dg81gDatod £000 EOOO R9slriclod Èndowinont Funds £000 lund8 Fund5 2022 £000 494 20?1 £000 £0 51 Slaluiory fees.. chap1alncy In¢om8 Chui¢h Commigsioners- Gu8ianLeed allnuilEs Re¢hwg6 of5talf costs Whall8y Abbey Colllar9n¢e Hous8 Incom8 for ITainillo courses Olh6r fee$lsale5 494 39 39 141 141 57 36 60 44 44 90 534 724 728 5. Other trading activities Total ruxds Tol&l funds lJnreslrlct•d funds General Daslgnalod £000 Rostrlctod Endowmgnt Fttnds 2022 2021 EOOO 284 38 Eooo 63 133 £000 221 £000 £000 284 Rental InG(m8 WhalleyAbbey COnferer￿ Hous$ A¢counllng arbd Leyal se￿1￿$ Con8ullancy ￿[ViCES Olherftre51sales 133 Jfj 216 221 437 377 6. Inveslmenl income Tol$l fund8 2022 £000 714 66 33 Tol81 funds 2021 £000 Rostrfctod Fund$ £OOD 470 12 Endowm8nl Fund& G&n¢rnl £000 231 44 eslgnaled £000 £000 Dnqdends re￿wable Inleresl ieceiyable Rents receivable 699 33 31 275 516 803 732 7. Other income Total funds 2D21 £0￿j 1,050 19 25 Unr88trlclèd fund Gpnorhl Dèslgnaled Re8tFleled Fundts £000 1,808 Endowmgnl Fund5 £000 257 funds 2022 EOOO 2,165 £000 Èooo Galns on d15posal ol r￿ed 8ssetg Galns on disw5310l inveslmenis Loan inl8resl 1.908 257 2,155 1.094 Page 29

The Blackburn Diocesan Boai'd of Flnanee Limited Aniiual Report Hnd Financial Statements For the ear ended 31 December 2022 8. C051 of raising liinds Total funds 2021 Urirestrlctèd lunds Restrlcted EndDsyfflenl funds Genero1 DÈ8lunaled £000 £000 Fiinds Fiinds 2022 £aoo S9 Eooo £000 EOOO Proiecl Manayemenl Parish share Secielaiial Ai¢hdeacons Investment Managetnenl Costs Whalley Abbey Rents Rents Fundralsing Tradin9 Whalley Abbey Fundra15Ing TradSng olh8r 69 17 12 20 20 41 34 14 14 BO 180 19 02 53 301 31g 264 Page 30

The BlackbLirn Dlocesan Board of Finance Limited Annual Report and Financial Sialemenls For lh8 8ar ended 31 Decetnbor 2022 9. Expenditure on charitable aclivilies Un￿$t￿¢￿d funds Gan•ral D•$lgnalod £000 £000 Reslrlcted Endownienl Total fiinds Tolul funds Funds 2D22 2021 £000 £o(K) £000 £000 Conlrlbullons to Archblshops, Councll 302 185 26 302 3W2 National Cliurth responsibiliilag Grants and provislons Agency penslon 186 25 26 13 13 Reliieu clErgy housing costs ICHARMI Pooling ol oidlnand ¢andldal95 QO81s General Synod expeDse5 114 114 37 10 657 867 T10 Parlsh mlnlstry Stipends & Nalional Insurance Pensh)n ¢oMlribuknons Houslng tOÈls Remov81, reselllemenl and olb2r grants Other expen8@5 5.031 1,435 fj,$43 s,oJ 1.435 1,888 4.665 1,347 1,555 45 223 223 66 232 75 62 45 8,294 8,343 7,874 Support for p2rkh mini5ty Whalley Abb&y Conlerente House Redundaiil churches Sligleglc Oevolopment Funding Projtc15 Sl Phlllp's Cenlre Prolet* Gianis lo Paflslies, Indlvlrluals and Other Chttrlllas Miscellaneous Expenses I,B39 239 32 f,871 239 78 1,652 192 78 2,083 51 2,083 51 720 36 42 1.010 1.OS2 786 28 2.078 74 3,222 5,374 3,489 Expondlluro on education Granis lorlhe work of IhB Board 359 359 337 259 359 33T Charitable a¢tlvltles 78 14,Y33 12,410 Page 31

Thè Blackburn Diocesan Board of Finance Limited Annu81 Repori and Financial Slalemenls For the ear ended 31 Deceniber 2022 l O. Ai)alysis of expenditure including allocation ol suppoil costs Manag8- mont Admln Support £000 Grant fundlng ol un(lortakgn dlrsatly £000 Total 2022 £000 Total ?.021 £000 £000 Cost of mlslno fun¢s ConlribuNons lo Archbi5hopy' Coundl Parish Minlslry Support for P8rl8h Mlnk31ry Educ8lion Olher 282 37 319 67 8,343 5,374 359 264 710 11,363 846 6.120 3,397 223 1,226 359 752 337 f93 11,814 2.453 7B9 6.OS6 t2,8fj7 11. Analysis ol support ￿5t$ Tolal funds 2022 £000 37 577 Total lufid5 2021 £000 30 759 UMr&Btrlcted funds Raslil¢led Endowment FundB Gon&ral eslgna19d £000 £000 £000 £000 Ra￿l￿g Funds Cenltal Adminlslratlon GovernaDce cosis 33 5Y7 29 4Z 71 38 23 Accounting and Flnan¢a Otrice Audit & accountancy fÈe& Dio¢es3n Synod cosis DBF t)ireclois and Blshop's oJncil MÈÈtlnos Sh8nce￿Or and R89lslF8r Fees 42 28 2B 67 67 57 789 793 997 Page 32

The Blackburn Diocesan Board of Fiiiance Llmited Annual l<eport and FinanGial Slaleillenls For the ear end8d 31 Oecember 2022 12. Analysis of transfers between funds Un1è5tricted fuiids General Desigiialed £ooD Re5trlctèd Endawment Funds Fund5 Total 2022 £000 £000 Èooo EOOD From gener81 fund lo stipends irKome fund IreslilGledl and housing fund expendilure ofihos• funds From P¥sloral Fund lo Pgrsonages Fun(l- liansf8r costs of parsonage5 bought From Parsonages Fund lo Pastoral Fund- book value olparsonages transfer￿￿ lo th& BDBF for disposal by pasloTal schemes From Vision 2026 fund Idesignaledl lo U8neral fund for the Vision Director post From OlocÈsan Vision 2026 siralegic Developmenl flind10 9eneFal fund and Housing fund lo cover loss ol incc¥y from house5 used for pioj8¢1s FroTn general flind lo deslgnaled foi Whalley Abbey From r81eased 8ndowm&nl flind lo re51ricied lunds for parish Vbio prolecis 16,3271 5.327 151 501 23 1231 20 19 1221 22 15,3051 5,865 14961 The funds that havB been transferred have been used In line with any applicable reslriclions and have beeii transferred lo make Ihe presentalian ol the expenditure more Iransparenl. The spending of the funds has extinguished any ￿SIr￿1￿)nS. Page 33

The Blackburn Dlocesan Board of Flnanco Llmlted Annual Report and Financial Slaleménls For lh8 ear eiTrded 31 Decernbei 2022 13. Nel income for the yeai 2022 £000 2021 EO riieseaipslatedaftercharglng.. Fe65 payable lo the auditor foraudil setvices Fees payable lo the audiior for non Eudil 59tvlce5 Whawey Abbey conf8rell￿ Hou5É Tr8dlng DO[￿11 25 7B 164 14. Slaff numbers and costs Th8 averag& nUM￿r of people eillployed dLiring the year wa$ 56.712021.. 42.5). The full-tirne equivalenternployees during the year, in¢ludiro ses$ianal workers, has been analysed by teams. 2022 2021 Enablers and Obligalions Growiog Leaders Making Disciple5 Btrlng Wilne538S Being Wilne558s-parksh workors Area Desns Admin wha1￿Y Abbey Confer8nce House 25.6 19.5 49.5 34.4 The aggregat¢ payroll costs of 8118mploye&s were as follows.. 2022 £000 2021 £000 Wagtrs and $818ri6s ReduTrcl8Mcy and sglllewni payffl£nts Soual Aecurily wsls Olherpefision costs Olherbenefils 1￿87 1.136 94 108 182 126 195 1,715 1,520 There was no employeè whose salary was In ex¢8ss of £60.000 In the band £60.000 to £70,000 {2021.' one employee N7 Ihe band £110,000 fo £120.000). Reinujieration of key managefftentpet¥onnel Key managemenl pgrsonn@l are de8tned lo be those Iiaving aulhorlly and iesponsibilily, delegaled lo them by the tru51ee5, for planning, directing and Qonlrolllng the aclivilie5 of the Dlocese. During 2022 they w&r8'. Diocesan Se¢relary'. Depuly Dlocesan Seuelary and Company Secretary Ganon Stephen Whillakor Mrs Ruth MGGaughey Remunerallon. pension5 and expenses lor these 2 employees amounted to £157,28612021.' £282,903 for 2 employg8sI. The Diocesan Secretary rernuneralion was split belween the Board of Finance and the Board ol Education. Only the Board ol Finan¢e elemenl 05122 10 12t22 15 shown here. Page 34

Tho Blackburn Diocesan Board of Flnan¢e Llmlted AnnuEiI Repori and Financi81 Slalemenls For the ear ended 39 DeLeinbÈr 2022 In 8ddilion lo lh& foregoing numbers olpersons employed by the charitable cofflpany in 2022 there were 172.6 12021., 165.8) full tSme equivalenl slipendiary ¢lergy iti posl Sli Ilie Dlocese. Thes9 may be analysed 9$ follows.. 2022 2021 Archdeacons Incumb8nls Assi51anl Cui8las Lgy Woikeis 135.3 133.6 29.2 172.6 165.8 The avei?ge nuinber of 81ipendlary clergy in post during 2022 was 183.512021.. 180). Although not employed by thp ch81itable (￿MpanY the payroll costs ol the 8bove person5 are rnel by 1118 charitable company and ale incliided in the financial st8lemenls. The aggregg1& payroll costs of the gbove persons are as folbws.. 2022 2021 Stipend Redundancy aiid sellkmnl paytnenls Social 5eGvrKy costs Apprenll¢eship L9Vy Penslon costs- cuiieDI year inlerestcosts 4,648 108 4,403 349 21 1,435 1,381 6,592 6,163 Trustees, emolument5 Averag& number of dlreclors 2022 2(￿1 Dweciors 2X 23 No Iruslee received any remuneratlon for Seivices as Trustee. The Trustee5 received Ir8velling and oul of pock81 expense5, tolalling £17.21812021- £9,922) In respecl ol General Synod dulles, duties as archdeacon or area dean. and othei duties as Trustees. Truslees wha are also licensed sllpendi8ry clergy and aichdeacons in the Diocese were in retsiptof 8 51Ip8nd and housing provided by (he BDBF during Ilie year. The BDBF is also respoiisible for the provision of housing for thè Suffragan Bishops but exduding Ihe Dlocesan Bishop and Galhedral sldff. 15. Pension schemes Church of Eng18nd Funded Peiision Scheine Th8 BDBF parti¢ipates In the Church of England Funded Pensions SChe￿e10[8tIpen[l1ary ¢lergy. This seheme is administered by the Church of England Pensions Board, which hold5 Ihe ass&l$ ol the 8chem9S separately Iroin IhDSe of the Ernployer and the other partidp81ing employers. Each participaling employer ill the gcherne pays ¢onlFibulK)ns al a ¢ommon conlribution rate applied lo pensionable sllpends. The s¢heme18 considered to bè a mulli-employer schem& as de5ciibed in Section 2B ol FRS 102. Tliis Ineans it is nol p055ible lo atliibule thè Scheme's assets and 1Sabililies Io specific employer5 and that ¢onlribuiions are accounted for 8s if th8 Scheme were a defined ￿ntrIbution schenie. I'he pen%ions cosls ¢haiged lo Ilie SOFA in the y£2r are conliibulioiis payable lowards benefi18 and expenses accrued In Ihal yeai. plus any impacl ol deficlt contribulion8 Is8@ belowl. Page 35

The Blackburn Dlocesan Board of Finance Llmlled Annual Rtsport and Financial Slalernenls For the ear ended 31 DeceFnb&r 2022 A valuation ol the Scheme is carried out once every th￿e years. Th& most re￿nI Scheme valu8lion cornpleled was Garfi2d out al as 31 D8cember 2021. The 2021 valuation revoaled a surplus of £560m, based on assets of £2.720m and a funding largel of £2.160m, assessed using the following assurnplions.. An average discount rale of 2.7 /¢ p.a., RPI inflation of 3.6Yo p.a. land pension increases consi51ent with this),. CPIH inflation in line with RPI less 0.89/0 pre 2030 moving lo RPI with no adjuslmenl from 2030 onwards., Increase in pensionable sllpends In Ilne wSlh CPIH., Mortalily in accordance with 90% 01 the S3NA lab10s, with allowance for improveMen15 in mortality ratès in line with the CM12020 extended tnadel with a long lerm annual Tale of improvement of 1.5Q/o, a smoothing parameleF of 7, an initial addition lo mortality improvements of O,SVh pa and an allowance for 2020 data of 0% li.e. w2020 - 0%). Following Ihe 31 December 2018 valuatlon, a defi¢il ￿Covery plan was pul in place until 31 December 2022 and Ihe deficit recovery ¢ontribulions las a percentage of penslonable sllpendsl wer8 as set out in the table below. An inlerim reduclioTr to delicit ¢ontribulions to 3.2Q/a ofpensionable stipe.nds was made wilh effect from April 2022. Following fina115ation of the 31 December 2021 v8lu81ion. deficit ccnlribullon5 Leased with ellect Irotn 1 January 2023, since the Sch8rne was in siiiplus. As 8131 December 2020 and 31 Decembor 2021 tm dbfieit recovery conlrlbulions under th8 iecov8ry plan in force were as set out in the table below. For senior office holdors. pensionable stipends are adjusted in the calculalk)ns by a mulllple. 9S 891 oul in the Schemè's rules. of pensionable slip8nds January 2018 10 December 2020 January 2021 to December 2022 Deficll ￿paIr Gontfibulions 11.9% 7.1V. Section 28.11A ol FRS 102 r8quires 8gieed deffcll recovery payrnents to be recognised as a Ilabillly. However, Hs IherÉ are no agreed defirAt recovery payments from 1 January 2023 onwards, the balanTr sheet liabilily as a131 Decembei 2022 is nll. Th8 mov8m8nt in Ihe balance sheel liabilily over 2021 and over 2022 IS Sel out in the table below. 2022 £'ooo 318 {1811 2021 £'ooo Balance sheet Ifability 8t l January D&fieil contribution paid Inler881 cosl Ir8cognised in SOFAI Remaining change lo the balance sheet liability" Irecognlsed In SOFA) alance shoel Ilabilily al 31 Decomber Compris&s ch8nge In agreed deficll ￿¢0very plan and change In discount rale belw8en y8ar-8llds. This liability represents (h2 pr?senl value of the deficil conlribulions agreÈd as 81 the 8ceounling dale and h88 been valued using thé following assumptions. No 2sBumptions are needed foi December 2022 as Ihere are no 8greed deficit recovery payments going fotwaid. No piice Inflallon assUMp￿0n was needed for D8cernber 2021 since pensionable 51ipends for Ihe rernainder of the recovery plan were already known. 596 1301} (1311 22 318 Doc8mb8r D6cember 2021 December 2020 0,2% pa 2022 18 Dis¢ounl rale nla nla 3.1% pa In¢rease to total pensionablp payroll nla -1.5% pa 1.6% p8 Page 36

The Blackbiirn Dlocesan Board of Finance Limited Annual Report 8nd Financlal Slateintrnls For the &ar ended 31 December 2022 Th8 legdl slrtjclure of the scheme is such that if another Responsible Body fails. 8lackburn DBF could become respon51ble for paying a share ol that Respot)sible Body's pension Ilabilltles. Group Personal Pension Pl* The BDBF parficipates in a defined contribution ppnsion scheme. I'he asset5 of Ihe pension schetne are held 8epar81ely from those of Ihe BOBF in Hn independ8nlly admlnlslered fund. The pension cost charge foi Ihe year represents contrlbutions payable by the BDBF lo the fund. Church Workers Pension Fund The BDBF participates in the DÈfined 8enefits SchemelDBS) section oflhe Church Workers Penslon Fund ICWPFI for18y stsff. The Scheme is administered by the Chuich of Engl(Ind Pensions Board. which holds Ihe 35s&ls of the 8cheme5 5eparal&ly from Ihose of the Employer and thp other participallng employers. For lunding purpDses, Ihe DBS is divided into sub-pools in respect of each participating employer as well as a further gub-pool, known as Ihe Life Rlsk Pool. The Life Risk Pool exists lo share Gertain risks between employers, Including those relating to Fnotiality 8nd postrfetiietn8nl inveslment returns. The divi51on of Ihe DBS into sub-pools 18 notional alld is for the purpose of calculating ongoing contributions. They do not aller the lacl that Ihe assets of the DBS are held as a single Iiusl fund out of which 811 Ihe benefits are lo be provided. Frorn lime lo lime, a notion81 premium 15 tr8nsferred froin employers, 5u&pools lo the Life Risk Pool and all pensions and death benefits are paid Irom the Life Risk Pool. The scheme is a mulli-employer scheme as described in Section 28 of FRS 102, 11 Is not posslble lo allribule the s¢heme's a5S8ts and 1Sabllltips to spedfic employers, slnrp each employer, through the knfe Risk Pool. 1% expospd to act￿arial risk5 a550ciated wll) the turrenl and formeT employees of other enlilles p3rticSp3ling in tha DBS. Thls means Ihal conlribullons are accounted lor a5 il DBS were a defined contrlbulion scheme. The pen510ns costs charged lo Ihe SOFA in the y&ar ale conlrlbullon5 payable towards beneflls and trxp8nses acerued in that yeEI 2022. £24,422 (2021.. £57.057). If, following an actuarial valuation of the Life RTSk Pool, there is a suiplus or deficit in the pool, furth8r Iranslers may be mad& from the Life Risk Pool lo the employers, sub-pools, or vice versa. The amDunls lo be transferred land Iheir allocation between the 5ub-poolsl will be settled by the Church ol England penS￿nS Board on the ad￿￿ of the Actuary, A valuation ol the DBS r6 carried oiil once pvery three years, the m05t iecenl having been carried out as 8131 December 2019. In Ihis valuation, the Life Risk Section was shown lo be in deficit by £7.7m and £7.7m was notionally Iransfeiied from the employers, sub-pools lo Ihe Life Risk Section. This increased the Etnpknyer contributions Ihal would olherwise have been p2y2ble. The overall defiThl in the DBS was £11.3m. The next acluarlal valuation is due al 31 Decetnber 2022. Following the 2019 vsluation. Ihe Employei entered into an agreement with the Church WoikeTS Penslon Fund lo pay a contribution rate of 45.2Vty ol pfrnslonable s818ry and expenses of £3,200 per year. The joint movement in the provision is set ovl below". Joint Movement 2022 £'ooo 2021 L'OOO Balance sheet liability 811 January Deficit contribuliijn pald Inteie81 cosl IrecognSsed in SOFA} Remaining change lo the balance sheet liablllly'lr&cognl$ed In SOFA) Balance sheet liabili 8131 De¢&mber Comprisos chang8 In agreed delicil recovery plan and change in discount rale between year-wd5. -rhis liability ￿presentS the presènt valuE ol the deficit contributions agreed as al Ihe accounllng dalo and has been valued uslng the lollowlng assutnplions, set by reference to Ihe duration of the deficiÉ Trcovery P8ymerTrls'. December 2022 December 2021 0.00% Deceinber 2020 o.ooy Dlscounl rale Tlie legal 51ruclurg ol the scheme Is such that if another employ&r fgils, Ihe empbyer could become responsible for paying a share. of th81 employe¢s pension li8bililies. Page 37

The Bla¢kbiirn Diocesan Board of Flnance Llmlted Annual Report and Financlal Slalen)&nls For the ear ondèd 31 Oecembei 2022 P8rson8ges Board Retlrement Benefit Schgmes The Parsonag&s Board Relireinent Benefit Schemes con18ins one scheffle wilh one member. 11 is a defined benefit schem8 wilh the Eceleslasllcal Insurance Group. The scheme is not con8id8ied niaterial within the assets of the Blackburn Diocesan Board ol Finance and due lo the cost lo the charity ol obtain info￿&110￿ on the scheme Ilie Blackburn Diocesan Board of Flnan¢e have not coinplied in lull with the requirem81)Is of FR8102. The delicil was recognl8ed at l January 2014 based on the tii8nnual va1uation120131 of £94,200. The SOFA has been charg8d with Ihe fulure SE￿1¢* ¢onlribulion rale with Ihe past 5etvice deficit reducing the balance sheet liabilily in the intervening y88rs. The balance shept deficit has been 2djusled on iecelpl of the lalgst Iriannual valualioi) report (June 20221. The deficit recognispd al 31 De¢ember 2Q22 1$ £0. 16. Analysis of grants made Grants to Indlvlduals £000 Grants lo 2022 Total £000 Total £DOO Included Wlthln £ODO ConlrSbulbns to ArGhbishops' CourKII P8tish Mini51ry First appO￿l￿ent and reselllemenl grants 646 701 223 223 231 Support for park%h minlslry Ordin8nd5 HatV85t apptal charllies Pad5ho5 Aiea 08ants Iparfshl Conllnulng mlnEsierlsl Sducalion Churches Tog61her in L4n¢ashire Caring for ¢ie81ion RÈtirÈcS clergy and Gle￿Y wklows C1tr1oy hardship giants Inler Diocesan Counseuing setvlces ln 173 16 872 16 872 22 536 88 53 ducaiion 359 359 337 Tol41 Granis Payable 540 1,913 2.463 2,030 Page 38

Tho Blackburn Dlocesan Board of Flnance Limited Annual Report and Financial 8lalefflen15 For IlTr¢ ear ended 31 DÈceinbei 2022 17. Tangible fy'xed assets T¢ial Freeliold land and bulldlngs £000 Flxtures, Long fllllngs and 19asehold office bulldlngs equipment £000 £000 NONJ Parsonago Land £000 PatsoFJayes Total £000 £ooD Cosl or valuation Al beginning Gf y8ar Addilions Dispos￿& 27.4(r2 13,689 1.443 18621 40,951 1.449 415 41,670 1,604 14151 At trnd of year 26,907 14.170 41.077 315 41.392 Depreclatlon At beginning olyear ChaTg8 loryear DL%posals 962 17 285 152 40 1,399 57 12891 17 At end ofyÈar 979 979 188 1,187 Netbook valttp At 31 Datember 2022 26,907 13,191 40,096 127 40,226 AI 31 D2cerrl)er2￿1 27.402 12,627 40,029 130 40,271 Parsonage houses are legally vested in Ihe incuillbenl lan "8¢clesiastlcal corpomlion 501e"l as freeholder during his in¢umbency. Three features olthe incumbent's freEhold hav& significanlly influenced the accounting Irealmenl adopled in Iheso financial statements. Firstly, the freeholder is not free lo dispose of the liouse lor personal benefit and is nol responsible for maintalning the house. Secondly, proc8eds of any sala, following a pastoral reorqgni$alion which makes the house surplus, normally revert lo tho Diocpsan Pa8loral AGcounl 01 DI0￿$an Slipends Fund. Thirdly, the Diocese is respon5ibl8 foi repair and main18nance, a responsibility which is ciirrenlty carried oul by the Diocesan Properly Commi118e. ThE Dioces& therefore cairies both the benefits and obligations olowneishlp. and accordingly the financial statements include the paisonage IIDuses logelher WI￿ other Dioce88n land and bulldlnus. Paisonage houses and other Diocesan residenti81 houses have been included in tangibl8 fixed assets al co81, or valuation wheie c081 was not available foi houses purchased prior lo 1998. The valuallon allribuled to each house was the mid-point (low point for the lop Iwo band51 of Ihe council tax valualian bandlng applied lo Ihe hou￿, Tho aggregale value of Ihe IIou5es valued in this way ainounled lo £19.413.000 [2027.. £20.379,000J. Page 39

Tlie Blackburn Diocesan Board of Finance Llmlted Annual Repoil arid Fiiiancial Slaleinents For th¢ ear ended 31 December 2022 Heritage Asset Wlialley Abbey was bought from th8 Olocese ol Manchester in 1928. 11 comprises substantial rem8ins of a CISIer￿an Abbey founded Iii 1298 and dlssolved In 1537. The Abbey of St Mary th8 Virgin, also known as Locus B8nediclu5 de Wialley was founded by Henry de Lacy. Ihlrd Earl of Liiicolfi on the 4th April 1296. The Abbey had mov8d fiotn the unfavouiable sile of Stanlaw into the Parsonage and olhertemporary buildi￿S al Vvhalley in 1283, when there were 20 monks. Excavation has uncovered the outlines of the chvr¢h. survivlng as foundatlons, as d08s the easlem elauslral range and the polygonal Chapter House. The standlng Abbey bullding5 and Conference House Thp l01Sowing notes are exlracted from the Conservation Plan prepared In 2002. The Conservallon Plan was compiled under Ihe direciion ol John Prichard (Lloyd Evans Prlchard), architect accredited in building conservation, with arGhiteclursl history advlcg from James Anderson £nd Clare Hartwell {Ar¢hi18CtUrydl History Piacticel. and archaeologlcal advice fiotn J250n Wood (Heritage Consultancy SeTvlcesl. North.East Gatehouse The North-Ea81 Galehouse dales to cirGa 1480, and was ¢onslrucled lo pmvide an Impre95wo entrdnce to the Abbot's Lodging and Clau.sum, the sacied preancl. It echoes lh8 earlier North-west Galehouse wilh ils two entrance ways, bul is embellished with diagonal bullr8S585, crenelalbn, and a 5talue nich8. Courtyard North Range The Courtyard North Range may Indude some medieval content, but the present *lruclures are prlncipally seventeenth Gent￿ry, with nlneleènlh-cenlury additions, and subs18ntial late twenlielh-century alleralions to create the tea room, kilchen, and exhibition loom. 11 is excluded Irom the scheduling. The Conf8rence House The Conference House 18 excluded from the scheduling, but it deseN8s 118 Grade l slalus and is of national signifi¢gnce. The indivldual componpnls are conside￿d below, and plemenls of s1Jn￿1¢an￿ discussed. T118 cenlial block includes original mediev31 fabric, such as the ar¢h adjacent lo the chapel, 8s well as medieval slonewoik whlch has probably been 18-used Irom demolished .Etru¢lures, such as the window between the Dining Rooir and the kitchen. The nineleenlh century lnlgri01s are a very good 8xatllple of Golhic RevivallArts 8nd Cratts work.. patiScularly nol8WOrthy is lh8 roof fireplace in the Great Hall and the staircas& decorated windows. T.he Eastwing The East Wing extends south Irotn tho chapel and comprises Inter glia the Paslew Sui18 aiid Ihe Peter of Chester room on the giound floor, and seven bedioDms on the f1151 floor. The Paslew Suilo and Peter ol Chesler rootn may incorporatp medieval material, bul thèy, aiid the bedrooms immediately alx)ve, weie subslanlialty iebuill in Ihe18te sixleenlli c811tury, as evidenced by the mullioned wlndows in the east wall, Ihe date slong Inol 8￿￿y5 a true indicator and the dating ol Forresl HisloriG by English Herilage during the 21stC relurbishmenl works. An exlension w88 add￿ in the mid-nlnetecnth century, wllh bedioorns above. The Wesl Wing Thewesl Range was added in the 1860s, and was well designed exlernally lo blend with the late seveTrleenlh- cenlury gabled north extension, and Ihe remains of Ihe Abbot's Kitchen and Long Gallery Range on the wesl. The BDBF Tecognisos ils responslbilily to Ple5erve Ihe heiitage asset and curreiilly looking tu raise fund5 lo be able to underiake work on the fuins. It does nol intend to acquire other herilaue assois. Ilvhalley Abbey ground5 are open to the public lo view the ruins but a¢￿sS is resliicled lo Ihe buildings on Ihe 811e. Th8 Gurrenl a8set value foi. Whalley Abbey is £0.9m after a major refurbishment of the house In 2004. The asset is bellig doprecialed over15 years to £O.Sm. The deprettiated valuB represents the value in the accounts ol the whole slle and is based on. an indication madp by a local suweyor. It Is difficult lo oblalTr an accurale valuation for the sile as the iulns represent 8 continued liabilily for their rnainlenan¢e and upkeep which considerably reduces the value of the 25sel if sold in Ils entlrety. Page 40

The Blackburn Dlocesan Board of Finance Limited Annual Roport and Finan¢ial Slaleinenl$ For Ilie ear ended 31 Deceniber 2022 18. Inveslinents and ir)veslmenl properly Investment Property Unlisted CJF Inveslmtrnts Others Inv05ttnent5 Total Inv8slmgnts £000 £000 Al valua[￿ Al b89lnThlru oly6ar Addillons D15PDsals InGrease Idecfeasel ill maikelvaliie £000 £000 1,881 24,677 15 15 26,553 15 1851 12,8701 1851 23 12.8931 At end ofyeai 1.799 21,799 15 23,613 AÈhisloJ7¢ Gosl 530 10,730 11.2 Investment propèrly is Dioc88an glebe laiid vested In the DBF under Ihe Endowments and Glebe Measure 1976 Ihal is held for th8 pufpDses of producing inc(>rne for clergy sllpends. Tho globe land is measured at fair value al the year end by an IrKfependenl RICS r8gislered v£lu4r. The valuation has been undertaken in 8c¢ordance with Inlemational and RICS Valuation Slatidards and has been based upon the valuei's experience in the valuation of agrlcullural, inslilLJtlon81 and amenity land within Ihe Lancashire and widei. iiorih-wesl region. Unlisted invesltnenls are made up of Central Bo8rd of Finaiice Investments In Church of England Investment Fund shares. Pioperty Fund shares an(1 Fixed InlÈresl Securilles. 19. Debtors 2022 £000 2021 £000 Amotsnts receivable WAllln oneyear Prèpayments and accrued in¢orn& (Jherdebtots Amount owed by relaled parties IcidaTi Educalionl Loans to ￿lSted patties (Emmanupl ThBoloJkal col￿g￿l Loans lo parishes 683 1,072 442 877 10 375 440 2,21 1.510 Aniounls recplv8blo #ftgrinore Ihfiii 0￿8 year Lo811S lo par￿heS Loans io rÈlaleA partps (Emmanuel Theologlcal Collegal Amoiini awe(I by related p8rfies Icidari Educ81￿) £000 EOOO 14 497 14 508 Page 41

The Blackburn Dlocesan Board ol Flriance Limited Annu81 Reporl and FinanLial Slaletnenls For the eai ended 31 Decembor 2022 20. Creditors 2022 £DOO 2021 £OLNJ Amounts falllng due L￿rhIn oiie year Tradg credilors Olh6rcfedllots Iiaxallon 8nd so¢k218ecurilyl Olhercredllors criial nouni3 owed lo related parties IBDBEI CCLA loan 648 53 88 186 235 418 314 51 278 178 1,528 2022 £000 2021 £0 Amourjts ralllny due aftermore Ilia￿ L￿ONe&r CCLA108n Du6 to Churches Consetvollon Trust Provision8 for liabllilies.. Pen51on d8Nt¥l f8 157 383 157 16Y 958 The long term loan from QCLA is a flexible loan faalilies subject lo 8 maximum TeP8ymtrnt leThn of 10 yeaTS. The loan h8s been 18paid in 2023. The amounl owed lo Churche5 Con8etv8tion Trust is due on disposal ol five r8dundanl church building$. 21. Commitments Cornmllrnenls al31 D8cember2D22. forwhi¢h no prc>vislon has been mode ID these ￿￿ou￿￿, were as follows.. 2022 2021 £000 £000 Aulhoriseil. bui nol ¢ontr8cied'. P8ti8h Vision Fund BenefaGt Granl Fund Clergy Housuig Fund 128 ss 187 544 67 340 22. Called up share capital The charitable ¢ompany is limited by guarantee, regislered in England and does not have an aulhorised or allolled share capital. Page 42

The Blaekburn Dlocesan Board of Flnance Llmlted Annual Report and Financial Stalemen15 For the e8r ended 31 Deceinb81' 2022 23. Nel assets analysed by funcl Tanolblb FlxEd Asseis FllodAsael nvestmènt NetCurreTrl As60ts Lono lemi Credltor laE$ets ag at 310ecember 2021 £OOD £000 £Q(M) £000 £000 Gen&ral F Desunaled Funds 1,677 6,826 446 317 2,536 8.520 2,982 Total Unrestrlcted Funds 1,677 6,972 2,853 11,502 Pastoral Accourt Other Restrlcied Fiinds 7.656 4.387 1,023 11,886 1,304 281 Total Restrl¢ted Funds 7,656 281 5.410 13,1 Parson8ge Houses Fund Sllppnds Casllal l Houslng Fund other Endowmpnl FUNIS 26.006 f.047 27,953 3,g86 10,821 4.492 485 15,292 4.497 Total Endowment Funds 30.892 16,360 490 47,742 Total 40.225 23.613 8,753 11571 72,434 24. Unreslricled funds Unrestrlcled lund5 coniprise Ihose lunds which are avallalle for 8pplication for the general purposes ol the charily as sel out in ils goveming documenl. Movements on Ihis fund aro as follows.. At 1 Janutjry 2022 Èooo Al)1 De¢embpr 2022 £000 Galns and losscs £000 Incom& Expèndllu Èooo £000 Transfers £OOD G8neial Fund 9,275 8,877 13.4401 16671 15,3051 8,520 At I January 2022 £000 At31 Galns and 1055es DeGember 2022 £OOD In¢orne Expendlture £ODO £ouo Transfers £000 £OOD Designaled FurKIs offl￿ Assets Fund Parsollage$ Fund Parish Vislon 2026 Grant and Loan Fun DIoc8$an Vk4Kin Slralegi¢ Development Fund DI0￿San Vi$lon 2026 Fund AllchurchesTrusl Grant Fund Other Dè51gnaled Funds 1581 439 323 323 822 56 863 578 478 265 83 1251 553 464 238 lQ2 80 1831 19 149 1781 1581 1641 Page 43

The Blackburn Dlocesan Board of Finall¢e Limited Anniial Report and Findn¢ial Slatein8111s Foi Ihe ear ended 31 Deceirber 2022 Des5gnated Funds Fund Income for 8pecifiG PUtPOS8S o(rKeAssBls Fvnd Applicationlpurpose Deslgnaled lo provide incume lo spÈcifi¢ purposes in parish Shara budgel Designated lor rapails, renovalion or for buying a new building in the future. For r@paiFS and disability adapt8tion on parsonages in excess of pailsh share budgel Designated Iv provide sotne ol the10gns lo parishes lo conlinu8 their tni55ion projects Diocesgn VIsh)n slra18gk Jeveknpm8nlDe51gnaléd lo provide match funding ne¢ess8ry for Str&teglc Fund Development Funding 8ppllcations Olttesan Vtsion 2026 Fund Deslgnated lo ¢ontingen¢iÈs for the development ol the diocesan vision The fund assists with fundlng the c05t ol diocesan projécts, building adminislration cost5, educatK)n, parish mission projects and major building works. P¥rsonage$ fund Parish Vislon 2026 Loan Fund AllcurchesTrust Grgnl Fund 25. Reslri¢led funds The income funds of th8 charlty inclLrde restricted funds cotnprising Ihe followng unexpended balance8 of donalions. yranls and investment incorne held oli Iru51 lo be 8pplled for specili¢ PUTP05es.' At31 At q January Galns and DeGomber 2022 losses 2022 £OINI £0 Income Exptrndltur £000 £000 Transfers £000 £000 Diocesan PasloralAc¢ounl ro¢esan Stipends Fund Inc(wne A¢¢ount SociBI Responsibihly Pfojecis Padsh Vlslon 202fj Grant Fund Bishops Clergy Wdows Fund Bishops Ordinat￿n Fund ResourrAng min￿le￿E1 Educallon IRMEI Fund Slshop'5 HsiveslAppe31 Slshop's Clèrgy In Need Fund SDF Fundod Projecis Lower Income COIT￿nItIeS Funding Parish Pastoial Fund otherReslri¢ted Funds 9,430 1.W23 496 11,701 1,579 19 18,0631 6,484 97 676 152 1621 1901 78 629 152 123 16 37 221 161 20 37 37 2,101 12,0821 42 1.402 (3011 11,139) 190 556 lJf281 1ff2 10,987 111.5341 13n 13,190 The specific purposes foi which Ihe funds are to be applied are as Idlows.. Fund AppllGatlonlpuTpose Dlocesan Pasloral Accounl Purposes a￿ laid down in Seclion 76 of the Pastoral Me8sure 1S83, the maln purposes being.. Cosls incurred for the purposes of the Measurp or any scheme or order made by the measure except forsalaries of regulardiocesan ernployees Cosls of disposing of orrnalnlalnlng h0115es or churches vested In Ihe DBF or Commissioners For the benefll ol another diocese Tiansler to th8 DSF Cdpilal or Incorne Funds Diocesan Stipeiyls Fund Incotne Subject lo any charges iinwsed by Ihe Scheme or order the fund shall Accounl lJe applied lo.. Piovide or3ugmenl stipends ol Incumbent5. as$i818nl curales and others engaged in the cure of souls iii the Diocese Meet expenses iiicuiied In rep8Iring and tnainlaining parsDnag8 houses P8ge 44

The Blackburn Diocesan Board of Finance Limiled Annual Report and Financial Slalemenls For the par ended 31 0eceml)er 2022 Paying secondary Class I conlribulions in respect ol minlslers not employed under 8 contract ol service Defray 5equeslralors' expenses Social Responsibility Projects The Social Responsibility seclion re￿1Ved funding for speafic pioje¢ls and for lis goneial coglb ￿latIng lo those projects. Project funding was reslrfcled to the projecl il had b8&n reqijesled for and approved expenditu￿ is applied against the fundlng in arcordance with th8 funders rules. Parish Vision 2026 Giarnl Fund The Grant Fund exists lo enable p3rishes lo lulfil mtsslon opportunltie5. normally through the appoinlmEnl oflay W0￿erS. Bl$hops Clergy Widows Fund The B15hop's Clergy Widows Fund is used lo help dergy widows and r8tired clergy in cases ¢rf lin8ncial haidship, particularly with houslllg costs. 11 furnd5 lh8 cost of social 6venls and the cost of the Diottesan Officer and Blshop's visitors. Blshops Ordination Fund The Ordin8llon Fund 18 used lo asslst fft881ing the costs ol Ordlnands in tralning. Blshop's Halvest App8al Each year the Biahop s&Ee¢ls a charily to ben¢fil from his Harvesl Appeal. Paiishes, Schools and individuals wilhln th8 Dlocèse collect money in support of Ihis ch81ily and the monies are di5tiibuted by the Dlocese in accordance with the appeal. The fund was eslabllshed by transfer of some of the Extra Mi$5ion and Ministry funds rpceived from the A¥chbishops' Counril 2008 2010. Grants from Ihe fund are award8d at the dlGcrelion of the Bishop, lo seNlng dorgy in Ihe Di0￿se. Blshop'8 Clergy Fund Resourcing Mini8lerial Educ8Uon IRMEI Fund Specific fijnding for Ordinands in tralnlng ftom Nallonal Churth. Strategic D2veloptnenl F￿lI. Funded ProjEcIs Specific fundlng for the Outer EstEles project and Preston Resourcing pari8h from National Church Lowerlncorn8Communili8$Fund Funding lo prornole the growlh of thurches in Lower Inwrne Comrnunilies Pailsh Pastoral Fund This fund reflects monies ring fenced from the Sale uf a vl¢arag8 In a parish wherg no scheme lor pastoral ro-organisation Is C￿rrentlY in place. The monies must be h8ld until either 2 vicarage is purdiased, or a 5ch8me is put in pla￿. Page 45

The Blackburn Dloeesan Board of Finance Limltèd Annu31 Report and FIn￿nCIal Slal8iHenls For the ear ended 31 December 2022 26. Endowment funds The endowment fund$ are held on Iiust to be relained for Ihe benefit of the Charity as a capital fund. Where the whole of Ihe fund Inu5t be permanently rnalntained il is known as permanent e￿OWMent. V4lhere Iliere is power of discretion lo convert endowed funds into incorne, Ihe fund is classilied as xpendable endowment. At31 Dtcember 2022 £000 At l JaThuary 2022 £000 Galns and Ios5ÈS £000 Income ExpenditUTe £000 Transfèrs £000 £000 DK)¢esan Stlpends Fund ca￿la1 Accounl Pars¢nage House5 Fund OtlJerPerm8neiifendowment Bishops Cbigy Mlidiw5 Fund m8inlenkn￿ oflhe MlnL41ry General puiposes alley Ab￿Y Oihgrendowments SllperLds 16,213 28,589 257 15,292 27,953 14961 12991 142) 1521 1231 2.263 314 391 171 64 1,274 356 443 194 94 1,443 1169) 49,694 257 11.9091 14961 47,742 The Dlocesan Stlpends Fund Capital Account This fund repiesenls the value of glebe property and inve51menls al the balance sheet date and is a permanenl endowment fund. The account 13 governed by the DIoc8san StIP8nds Fund M&asuiE 1953 as amended by the Endowments and Glebe Measure 1976, the National Inslitulion5 Measure 1998, and the Miscellaneous Prowsions Measur8 1992. Incorne arises from lh8 sale of 916be assets, the Iransler of parsonage sale Inoney, Iranslers from the DSF Income aGGounl. as well as gift5, beques15 and donats"ons. The main lunction of ihe luiid is to produce income foi the slipend5, but il way also b8 ilsed for other purposes includlng.. acqulring glebe prop8rty. Investing In a Subsidlary, developing and prolpcllng glebe amenllies, Investtnenl, discharging 5oans and levie5 on gleb&, improving parsonage hous8s and distharglng any losns T113de by 11)e Church Commissioners under the Endowtnents and Glebe Measure 1976. Parsonag85 Houses fund Thls fund r8pre5enls the value of benefice houses al the balance sheet dale. together with tho Parsonag95 8uilding Fund held by the Chur¢h Comrnissioners and inveslmenls held by the Parsonages 8oard. The hous85 ale used lo piovide accommodation for Ihe parocliial clergy. The Diocese is not free lo dispose ol Ihe hou5e5 except in ac¢ordance wilh the appropriale measure. There Is piovision for Ilie nel proceeds of sale lo be applied lo ellhèr the Diocesan Pastoral Account or Diocesan Stipend6 Fund CapilBI on¢$ o dlskX)sal h8s been effected. The Parsonage Houses fund is an expendable endowrnenL Oth8rPermanent endowments 'rhe perman8nl endowTnents are established undei a variety of trust deeds and documents which rÈquiie the funds lo bp held in perpoluily. The Incoffle ol the funds is to be applied lo the Bishops Clergy Widows fund, Maintenanco of the Minislfy lund, General PUTposes fund, Oiocesan Slipends In￿rne fund, Whall&y Abbey lund aiid olhei. snialler endowment funds. Page 46

The Bla¢kburn Dlocesan Board of Financè Limited Annual Report and Finan¢Sal SlalÈrnenls For the ear ended 311)ec&mber 2022 27. Related paities, transactions During the year (he company sh8red office Space with Ihe Blackburn Dlocesan 8oaid of Education and Cidari Education Lld. Shaied and staff lime eKpendllure has been ￿Charged at co8t. 2022 2022 2021 ReGharge5 lexcl. VATI 2021 Giants madB to Recharges (excl. VATI Grants made lo related partres partEs Wackburn Dlocesan Board ofEduralion Cldari Eduoaliofi Ltd Ylad(burn Cathedral Emm3nuel TheD10g￿￿I CDllege (formarty the Saints Centre for M155knn and MlnPstryl 24.314 10,492 U,038 9,700 359,360 15,953 9,887 24.570 28,292 336,914 999 Dunno the y8ar £164.462 has been pald to Emmanuel Théological College Ilormally the All Sainls Centre lor Mission and Miiii81ry1 loi Iiainin9 01 regders and ordinands12021.' £Y26, 798). Al the year eTTrd the b818nces due from relaled partie5 Were as follows.. Outstanding Ou15t3ndlng Outslandlng Outstglldlng Trade Loan Trade Loan B8lan¢25 at BalanGes al Balances al Balancos 81 3111212022 3111212022 3111212021 3111212021 Cidarl Edwslion Ltd BLq¢kbum C8lliedral Ernmanuèl Theologl¢al College Ifoimaly A Salnls Cellliel 11,126 5,110 17,048 17.857 70 42S,340 10.000 745,791 10,000 At 31 D8￿mber 2022 Iheie was a balance due lo the Blackburi) Dlocesan Board of Education of £169,926 12021.. £IT8, 185) and there was no balawe due to Emmanuel Theological College {2021.. £9,681). During th& year donalions received Iiorn IIu8lees amounted lo £4,494 12021.. £4, 1021. No donallons h8ve been r&¢eived from key management personnel12021.' £niO. Page 47

The Blackburn Dlocesan Board of Finaiicè Limlled Annual Report 8iid linan¢ia1 Slaleinen15 For the ear ended 31 Decembor 2022 28. Financial inslriiinenls 2022 £000 £000 Flnanclal assets mea5ur@d at fa￿va￿e 23,612 26,553 Financlal as991$ m8a$ured atamortlsÈd o)sl 10,281 8.220 Flnanual Ilabllilitrts measured at amortbed cost 1.528 1,701 Financlal Ilabilillets measured al lalrvalue 157 167 Finan¢la1 assels rne&sured al 18irv8lue comprise Investmgnts. Financia1 assels measiired al Bmortlsed ¢osl ¢omprLs& cash, trade debtors. olherdtblors and reGeivables and parish loans. Flnanclal liabilities measvred al amortised cost cOT￿rIs￿ accru8ls, olh8r creditors, theClergyPen51on Scheme IHbililyand amounis heldfr)rolhertrt)dies. Flnanclal Ilabillies Tneasured al farr value compiise value linked loans. 29. Funds held as cuslodian Iruslee The BDBF is custodlan Iruslee of assets held on permanent trust by vlrtue of the Paro¢liial Church Coun¢lls (Powers) Measure 1S56 8r)d the Incurnbenls and Chuichwardens ITru818l Measure 1964 where the managing trustees are parochial church councils Bnd others. PCC trust Investment aEsels held by lh8 BDBF have b88n 5ummarised below at market value.. 2022 £000 2021 £ocx) CBF ChurGh of England D8po$ll fund CBF Church of England Inveslmenlfund CBF Church of England Fixed IDleiesl fund CBF Church of England Property fund Other Cash 81 bank 4,586 10,459 257 61 4,811 12,034 33fj 70 44 Toial assels held as cuslodian Iruslee 15,418 17,297 The 8DBF also acts as custodian Iruslee in relation to Parochial Church CourKil IPCCI property. These 888ets are held separately lo those of the BDBF. Page 48

The Bla¢kburii Dlocesan Board of Finan¢e Llmlted Annual Report and financial Slaleinenls For tlie ear ended 31 December 2022 30. Prior year coinparalive Slalemenl of Financial A¢livilies Total lunds uh￿St[l¢led funds Restrlcted runds Èooo Endowffjenl funds £O(N) Geneial £000 Des￿n￿red £000 2021 £000 Income and endowm8nts Irom.. Don8lK)ns le.9aGie5 Paiksh conlribiilions Archbishop$' Coufic￿ and Chufch commls51oDeis Other Chsrilable s¢tivilles.' staiulory fees, chaplBin¢y and olherin¢o Other trading aclivilies Invtrtslmpnls Olher 7,46g 7,469 63 110 2.688 116 2.751 317 79 126 161 226 330 602 108 463 7( 72 377 732 1,094 108 30 55 13 Total Income and endowmgnls 8.485 92 4.fje6 205 13,468 Expendilure on.. Raising funds chartlats￿ acllvllle5 Other 229 2.901 io 8,252 25 1,219 148 38 12,410 193 Total Expendilure 3,130 38 8,307 1,392 12,867 Nel incomel1exp8￿ltur9} befortr in¥Eslmenls 5,355 54 13,6211 801 Nel Ilossyoains inveslmenis 927 61 37 2.072 3,097 Nel incomaflexpendllurtyl b8fore Iran$fers Ti8nsfer$ between funds 6,282 15,5801 116 292 13.5841 3,502 885 1.786 3,698 Nel IncomellexpendiluTel b8fore other re￿gnISed gaiTrs and loss8s 702 407 1821 2.671 3,698 Other recognL¥ed galn51lloss851 G8inlllDssI on revaluallon of frxed a5$615 Gal￿1{10$$I on dofined beiElil pension schemes 99 154 253 1221 N81 movemehl in funds 779 407 182) 2.825 3,929 Re¢oncili31ion ol funds Total funds at l J8nU8ry 2021 8,496 2,626 11,069 47,089 69,260 Total funds al 31 Dtcembpr 2021 9,275 3,033 10,987 49,e94 73.189 Page 49

The Blackburn Diocesan Board of Finance Llmited Annual Reptsrt and Financial Slalem8nts For Ihe ear ended 31 Deceinbei 2022 31. Prior year eoirparalive Archbisl)ops' Colincil aiid Cl)ur¢h Commissioners Tol31 funds 2021 £000 Unfeslricled lund Designated £000 RestfiGI funds £000 Endowmanl Funds £000 General £000 Low951 Income Communllle$ Fundlng Resthircing Mlnlslerlal EduGallon Block Grant Sl1&leg￿ Mlnlstry Fulld Slialeglc Cap8cily Funding Sltal8gic DpvelDpmeTrl Fundlng Pag1 Cases Review 2 Funding 1,355 1,355 212 212 213 55 213 33 853 85J 63 2,688 32. Prior year comparative Other donations Total runds Unreslrfcled Funds General Designated EOOO £000 78 Restricled Fund¥ EndowTneTrl Fun(tts £000 2021 £000 156 Allchurches Ttusl Oonalions Olh$r Granls 78 18 14 48 68 110 116 12 317 33. Prior year eomparalive Charitable aciivilies Toial funds 2021 Unreslficled Funds Gbnfrral 068ignBIDd £0 £000 ReslrKled Endowment FufKIs Funds £000 £000 Slglulory fees,. ch3plaincy iDGOtnÈ Church Comtni8sioners-Guaranleed 506 506 Rechaoqe of staff cosis halley Abbay Conference HoLtse Incoine for liainlng courses Oth81 f¥esls8les 68 57 36 33 27 126 728 34. Prior year comparative Ollier trading activities Unre61rlcled lunds Dèslpnated EOOO Re51ircl@d Funds £000 108 Erbdimmenl Funds £000 107 funds 2021 £LK)o 284 Genèral £000 69 Renlal1ncorne alley Abbey Confarence14ouse Accounling and Lega1 strvKe5 Con$ullgncy service5 Other lèesl581es 18 36 36 161 108 108 377 Page 50

The Blackburn Dlocesat) Board of Financ6 Limited Annual Report and Financial SlalÈmenls For Ihe ear ended 31 December 2022 35. Prior year comparative Iiiveslmenl Ii)Goine Unrestricted lunds G¢ngral Ooslgnal £0 Endownienl Funds rolal funds 2021 Fund& £000 225 £000 431 £000 Eooo Dlvld8nds recelvablÈ Inleie81 r6celv8b Rents receivabla 6g9 31 31 226 463 30 n2 36. Prior year ¢oinparalive Other income Unrpslrfcled funds G&netal Ooslpnai8d 2(N)O £0 325 Endowmeni Funds £000 Yolal funds 2021 EOQO GBins on dLsPQ$81 offlxod asseis G31n5 on dl8pasal Of Inveslmenis Loall Inlerést £000 ),050 19 25 20 330 709 55 1,094 37. Prior year Gompaialive Cost ol raising funds Unieslri¢ied funds General De&￿Trat&d EOOO Tol funds Reslrided Fu￿5 Endowmenl Funds £000 2OZ1 £000 Projecl ManBgemenl P8rL%h 8hAre 12 12 12 Archd8acon$ Invoslmenl Manfjg8menl Lost$ Wh211èyAbbey Ronts R8nl8 Fundralslng Trading Wh811ey Abbey Fundraising Trading olhar 41 41 34 102 25 102 53 229 io 25 264 Page 51

The Blackburn Diocesaii Board of Finance Limlted Annual Report and Flnan¢i81 Statemen15 For Ihe eai ended 31 Deceinber 2022 38. Prior year ¢omparalive Expenditure on charilable activities Unreslrictod General Oe$kJnaied Endowment Toial tund$ 2021 £oi)o FundA £0 Fiinds £000 Éooo EOOO Contrlbutlons io Archblsliops. Councll Trainlw lor mlnislry Nallonal Church r•sponsfo11ki8S GroDls and provlslons Mission Ag8n¢y penslon ¢onlrlbulh)n$ Rellred clergy housillg cosis IC14ARMI Poollng ol Drdlnand Gand￿aleS costs Genersl 81 ynod expenses 302 302 211 26 26 13 37 37 10 710 710 Parish minislry Stipends & Nalionel Insurancp Pensbn contribullons Housing ¢0515 Rernoval, r*setllem8nt and olhér granis Olher axpenses 4,665 1,346 291 4.665 1.347 1,555 44 1,219 232 232 75 75 45 6.609 1,219 7,674 Support for p8rtsh minisl Whalley Abbey Conference House Redundanl churches Slralaglc 08velopment FurKling 1,487 192 165 1,652 192 73 73 717 36 720 Sl Phlllp's Centre Project Grants lo Parisle5. IndbvidvRls and other ¢harllias MbcelIa￿e0uS Exp9nSè$ 129 652 788 2b 27 1,809 37 1,643 3,489 Expetbdkure on Èducallo Gianis for Ihe wotk of the Board 337 337 337 337 Charitable activities 2,901 38 8,252 1,219 12.410 Page 52

The Blackburn Dlocesan Boayil of Finance Limlled Annual Report and Financial Slalemenls For the ear ended 31 Dec8mber 2022 39. Prior year compai'alive Analysis ol oxpendilure Including allocallon of support wsls Manage- menl Granl funding ol Actwllles undèrtaken Admin Tolal 2021 Support EOC £000 £ooD Fundrglslng Ttsding WhalleyAbbay Co81 of raigiw funds Conlrlbullons loArchbishops' Coundl Resourclng minlsiry 8tKI ml$$lon Educ81ion 102 132 30 162 710 11,363 337 Yio 983 9,413 337 193 193 9,840 2,030 997 12.867 40. Prior year comparative Analysis of support costs nresi1￿[erf fund& Gener21 DeslJnai8d £000 Reslikted Fthd8 £000 Endowtllenl Fund$ £000 2021 £000 24 £000 Rak81llg Funds Centr81 Aamlnlsifallon GoveinanGE cosis Secr818rlal Accounllng and Finance OffK8 Audil & accounl8o¢y leès Diocesan Synod ¢0sls 06F Execulive and 8ishops Council Dnp.olings chan￿1k)i aiKI Re9isligr Feas 20 759 759 71 71 38 23 23 57 57 991 41. Prior year comparative Nel assets analysed by fund N8t¢uriÈitl Asse15 Assets Lang lenn ¢redltDr assets a8al 00 2021 £000 £(K)o £000 GeneF81 Fund D6si9naied Funds 1.798 7,392 492 886 2,541 18011 9,275 3,033 Total Unreslrfttgd Funds 1,796 3,427 IB011 12.308 Pa51oral Accouiil OlheF Re51ikla¢J Fun(15 7,267 2.320 1.239 9.430 1.557 318 Total R8$lilcled Fund¥ 7.267 318 3.559 11S71 10,987 P8rson&ge Houses Fulld Slpends CaFMlall Hoiislng Fund Other Er￿Ow￿nI Funds 27.402 1.187 28.SB9 3,804 12,079 5,087 330 16,213 5.092 Total Endowfflenl Funds 31.206 18,353 335 49,894 Total 40,271 26,55B 7,321 195111 73,189 Page 53

Thè Blackburn Diocesan Board of Finance Llinlted Annual Report and finaiicial.£talemenls For the ear end8d 31 Oocombei 2022 42. Prioi year comparalive Unreslricled fund5 At31 At 1 Jaiiuary 2021 £000 Gains and 105ses December Income Expendlture Èooo £ODO Translers EOOO 2021 £ODO £000 General Fund 8.4% 8,485 13,1301 l.W4 15.5801 9,275 At31 02cemb8r 2021 £000 At l January 2021 £000 Galns and losses £000 Inoomg Exp8ndlture £000 £000 Translor$ £OQD 085iynated FLinds Offl¢tAsseis Fund Parsonages FuThl 81 324 323 Paibh IA51on 2026 Flind Diowan Vision Slralegk Dtvelopmenl Fiind Dlocesan VBion 2026 Fund Allchurches Trusl Giant Fund Olhet Design&ted Funds 421 400 822 629 420 298 123 1491 578 478 265 79 1401 2,626 92 (381 61 292 3,033 43. Prior year comparative Reslricled funds At3 December 2021 £000 At l January 2021 £000 GaSns tjnd 105ses In¢ome Expendlture ÈDOO £ooD Tran5feis £000 £000 Diocesan Pa$ioralAcGounl Di0￿san Stipends Fund Incotne Account Soclal RÈ.sponsibilily Projects PaTish Vision 202fj Granl F￿nd Blshops CIBrgy Wtdows Fund Bishops Ordination Fund 9,5S2 711 9,430 1.317 28 16,6241 13$) 5.307 134 126 148 613 154 26 1991 1501 23 37 676 152 Educallon BMEI FunrJ Bishop's Hap*sl Appeal Blshop's Cbigy In Need Fund SDF Funded Projects Lower Incomè Communttkgs Funding Ptsiish Pasloral Fulld Ollier ReslFKled Funds 89 212 23 123 16 1241 Y12 19441 1261 1,355 12041 166 154 152 28 1261 11,069 3,686 18.3071 37 3,502 10,987 Page 54

The Blackburn Diocesan Board of Finance Limited Annual Report and Financial Slaleinenis Foi Ihe eai 8nded 31 December 2022 44. Pi'ior year comparative Endownienl funds At31 D&Gember 2021 £000 At l January 2021 £000 Galns and los$e$ £000 Incomg Expont¢itiire £000 Transfers £000 £000 E¥pendablè endowm8rJf Dlocesan Stipends Fund ¢9Pi Account Parsonage Houses Fund 14,869 27,725 55 150 1,437 149 16,213 28,589 11.2441 1,809 42,594 205 11.3921 1,586 44.802 PermarJen£endown?eAIt Blshops c￿rgy￿d￿$ Fund Malnlenance ol Ministry General pu￿oSe$ halley Abbey Olherendowmenls 2,241 311 387 170 102 1,264 321 45 55 24 15 180 2562 356 443 194 94 1,443 1231 4,475 (YJI 5.092 47.1￿9 205 11,3921 2.226 1.786 49,894 Page 55