2022-12-31-accounts

Report of the Directors and Financial Statements for the year ended 31 December 2022 for Worcester Diocesan Board of Finance Limited Registered Charity Limited by Guarantee Company Registration Number 00271752 Registered Charity Number 247778

2022 REPORT

Contents Annual Accounts

Company Registration Number 00271752 Registered Charity Number 247778

Published June 2023

Contents of the financial statements for the year ended 31 December 2022

•	Company Information .............................................3
•	Report of the Directors ...........................................4
•	Report of the Independent Auditor ....................15
•	Statement of Financial Activities ..........................18
•	Income and Expenditure Account .......................19
•	Balance Sheet ........................................................20
•	Cash Flow Statement ............................................21
•	Notes to the Financial Statements ......................22

2022

Ministry Share was implemented from January 2022, and contributions were largely sustained despite the cost-of-living crisis.

A team of Mission Accompaniers was set up, offering free support to churches as they work towards being healthier and more sustainable.

15 Candidates began training for ordination through a new ‘Auxiliary Pathway’ to become locallybased self-supporting clergy.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Company Information

Company Information for the year ended 31 December 2022

The full name of the charitable company is Worcester Diocesan Board of Finance Limited. The directors, who are also the trustees and members of the Bishop’s Council of the Diocese, during the year and up to the date the report was approved are:

Directors

The Reverend A Todd (Chair) The Right Reverend J G Inge The Right Reverend M Gorick The Venerable N J Groarke The Venerable R G Jones The Very Reverend P G Atkinson E A Wiles (Vice Chair) B W Allbut (resigned 31.12.22) The Reverend M Badger (resigned 10.01.22)

The Reverend R M Clark (resigned 10.01.22)

The Reverend A C Davies M D Hunter (appointed 20.03.23) The Reverend R Johnson (appointed 9.03.22) P V Kear (appointed 25.01.22) J K Layton J A Lovesy (resigned 10.01.22) R C Lunn (resigned 10.01.22)

The Reverend Canon C A Lording R J Pearce (appointed 6.12.22) D I A R Phillips The Reverend A M Potter (resigned 10.01.22) H A Richards The Reverend B E Rienstra (resigned 10.01.22) D J Sparkes (resigned 10.01.22) T H Terera (appointed 13.01.23) D M Wightman (14.07.22) The Reverend Cannon T J Williams (appointed 17.02.22)

Company Secretary J P H Preston

Registered Office 16 Lowesmoor Wharf Worcester WR1 2RS

Registered Number Company: 00271752 Charity: 247778

Auditors

Crowe U.K. LLP Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG

Bankers

Lloyds Bank Plc, 4 The Cross, Worcester WR1 3PY

Solicitors

Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham B3 2ES

Investment Advisors

CCLA Investment Management Ltd, Senator House, 85 Queen Victoria Street, London EC4V 4ET

Insurance Agents

PIB Insurance Brokers Ltd, Poppleton Grange, Low Poppleton Lane York, Yorkshire YO26 6GZ

Property Investment Adviser

Chartered Surveyors, Global House Hindlip Lane, Worcester WR3 8SB

Parishes worshipped God, transformed communities, shared hope and made disciples through different types of service and community initiatives, particularly after the death of HM The Queen.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report

2022

Report of the directors for the year ended 31 December 2022

The directors, who are also trustees for the purposes of charity law, present their annual report, together with the audited financial statements, for the year ended 31 December 2022. The directors/trustees are one and the same and in signing as directors they are also signing the in their capacity as trustees. This combined report satisfies the legal requirements for:

• a Directors’ Report of a charitable company,

• a Strategic Report under the Companies Act 2006 and

• a Trustees’ Annual Report under the Charities Act 2011

Chair’s Report

Date: 10 May 2023

“May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope.” (Romans 15:13)

I recently overheard a comment in a radio interview which has stuck with me: “Hope is a collective activity.” The phrase expressed two profound truths: that hope is not simply a disposition, something we either have or do not have, but something to be worked at; and that it is something best worked at together. If that is true of society at large, how much more in the context of the Church, part of whose vocation is to make tangible the God of Hope in a needy world?

These financial statements are more than simply a collection of words and numbers. They tell a story of hope as a collective activity. I would like to highlight here just three aspects of that story.

Firstly, our financial position. Despite the continuing difficult economic environment, the overall result for the year was a small surplus of £360k (see under Financial Review below), which has been added to the fund available to support benefices in the transition to the new Ministry Share system. For some benefices, this transition is proving understandably challenging, but there is clear evidence that it is being addressed with both realism and hope. As we look to 2023 and beyond, the economic headwinds from energy costs in particular, and inflationary pressures more generally, are if anything even stronger than previously. However, the resilience demonstrated by congregations so far, and the fact that they are already engaged in the difficult conversations which are so necessary, are surely grounds for hope.

Secondly, progress in our Transformation journey. Much has already been achieved by churches seeking to work towards greater health and sustainability, with the support of Diocesan personnel and funds (in the form of the Healthier Churches Fund, made available by the application of a Total Return basis of accounting to the Stipends Capital Fund from 1st January 2021).

I am delighted to be able to report that we have now received in-principle confirmation that these funds are to be supplemented by a very substantial multiyear grant from the National Church, to be applied especially to support our “renewals” programme. But the key message to churches in the Diocese must be: the Transformation Programme is not an initiative ‘from above’, but is fundamentally about supporting you as you grapple with what a hope-filled, healthy and sustainable future might look like in your context. Thirdly, the many stories, only hinted at in these pages, of groups making a difference in so many contexts. Churches have worshipped God, encouraged Christian discipleship, shared hope, and transformed communities in a huge variety of innovative ways: Walking Church, Taizé/Benediction services, Community Link, a Community Fridge, and Town Centre chaplaincy are just a few mentioned here. A team of 45 Mission Accompaniers has worked with congregations to explore options for future development. 15 participants have offered themselves for the new “Auxiliary Pathway” to locally-focused ordained ministry. The Diocesan Education Team has become the first Diocese in the country to offer NPQs (National Professional Qualifications) for teachers. And continuing support has been provided to churches seeking greater environmental sustainability.

If you read these accounts in that spirit - as a testimony to the joint activity of hope-making in which the people of this Diocese are engaged (albeit expressed in the conventionally staid language of accounting standards) – who knows? You might even enjoy them!

The Reverend Andy Todd, Chair

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Directors Report

Public Benefit

The directors of the Worcester Diocesan Board of Finance Limited (WDBF) are aware of the Charity Commission’s guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Board.

By promoting, facilitating, and enabling the work and purposes of the Church of England in the Diocese of Worcester, the Board believes it helps to promote the whole mission of the Church (pastoral, evangelistic, social and ecumenical) more effectively, both in the Diocese as a whole and in its individual parishes. In doing so the Board provides a benefit to the public by:

• providing resources for public worship, pastoral care and spiritual, moral and intellectual development, both for its members and for anyone who wishes to benefit from what the Church offers: and

• promoting Christian values, and service by members of the Church in and to their communities, to the benefit of individuals and society as a whole.

Structure, Governance and Management

The company is governed by its memorandum and articles of association. The company is controlled by the Bishop’s Council, the members of which are Directors and Trustees. Bishop’s Council has two principal committees for finance and governance – the Finance and Resources Committee and the Audit, Risk and Challenge Committee. The statutory responsibilities of the Diocesan Mission, Pastoral and Resources Committee are fulfilled by the Bishop’s Council of Trustees, and those of the Parsonages Board and the Glebe Committee are fulfilled by the Finance and Resources Committee. The Diocesan Board of Education is also a Committee of the WDBF, with statutory responsibilities.

The clergy and lay directors are elected by the respective houses of clergy and lay members of the Diocesan Synod and further directors are co-opted by the Bishop’s Council so as to seek that among its elected and co-opted members that all the deaneries in the Diocese are represented, subject always to there being a majority of lay elected and co-opted directors. At the start of each triennium, the members of the Bishop’s Council are given a full and substantive overview of their duties and responsibilities as directors of the company and trustees of the charity. Training is updated within the triennium as and when required. The company is limited by guarantee and therefore the directors have no beneficial interest to disclose.

The Diocesan Secretary is responsible for the day-to-day management of the charity as delegated by the charity trustees. The senior management team is made up of the Diocesan Secretary, the Director of Finance, the Director of Education, the Director of Communications, the Director of Ministry and Discipleship and the Deputy Diocesan Secretary - Transformation. The administration of the charity is undertaken by the employed staff, who are based at 16 Lowesmoor, Worcester.

The Board is associated with a number of other charities and funds, full details are included with the connected party transactions within note number 32 to these financial statements.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report

Objectives and Activities

The principal object of The Worcester Diocesan Board of Finance (WDBF) is to advance the Christian faith by promoting, assisting and advancing the work of the Church of England in the Diocese of Worcester by acting as the financial executive of the Worcester Diocesan Synod. This includes the enabling of public worship, pastoral care and the promotion of Christian values by members of the Church in and to their communities, to the benefit of individuals and society as a whole.

A major part of the Board’s responsibilities results from legislation with regard to funding the costs of the clergy in the diocese of Worcester including stipends, pension contributions, maintaining clergy houses and paying council tax and water rates. The Board also supports clergy and lay people with training for Christian mission and ministry including children’s and youth work.

The WDBF also has the following statutory responsibilities:

• i) The management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976;

• ii) The repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972;

• iii) The management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education (DBE) Measure; and

• iv) The custodian of permanent endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956.

The Board’s main sources of income are contributions of Ministry Share (Parish Share prior to 1st January 2022) from Parochial Church Councils and income from grants and from investments. The Board is responsible for the custody and management of the Diocesan Synod’s financial affairs as well as those of the Diocesan Board of Education which works with church schools and academies.

In addition to their important role in the governance of the company, and as well as contributing to the work of the Church at a parish level, volunteers make a significant contribution to the delivery of the following activities:

• The work of the Diocese’s committees and working groups

• The development of vocations and the provision of training for lay and ordained ministry

• Help and advice given to parishes by the Diocesan Advisory Committee for the care of churches

• Mission and social responsibility work under the umbrella of several groups including the Commission for Social Responsibility and the Climate Crisis Task Group.

The Diocese has a long-established Kingdom People vision, which is underpinned by four values: love, compassion, justice, freedom. Our vision is that as we grow as Kingdom People, we will see more people come to worship God, that we will engage in transformative ministry within our communities, bringing hope and supporting those who consider themselves to be Christians develop their faith throughout a lifelong journey of discipleship.

Overview

During 2022 we made good progress as a diocese on our approach to Diocesan Transformation, but against a challenging background as the Country emerged from the Coronavirus pandemic and as there were steep increases in the cost of living:

• Ministry Share was implemented from January 2022, and was broadly successful at sustaining contributions despite the cost of living crisis.

• Our Calling Young Disciples project finished its main programme, achieving goals for take up by parishes and for the number of new volunteers. A nine month extension was put in place to seek to help parishes focus on increasing the number of young disciples, the project area where lower progress had been made.

• The pilot of a new “Auxiliary Pathway” was begun with 15 candidates. This seeks to provide a new pathway of discernment and formation for locally focused ordained ministry. This would typically be a self-supporting assistant role, perhaps with day-to-day ministerial responsibility for one or more smaller churches in a larger benefice or team.

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Directors Report

Achievements and Performance Achievements

2022 Priorities

In last year’s report we set out our priorities for 2021:

• PRIORITY 1:

To continue our transformation programme, helping churches to think through how they might grow as Kingdom People through healthier and more sustainable churches.

Following development work with a number of groups over the summer and early Autumn, in November, Diocesan Synod enthusiastically adopted a set of four strategic priorities that will shape our Transformation Strategy. These are:

• To seek to double the number of Children and Young People attending our churches each week, largely through enabling at least one paid Childrens, Families and Youth Worker in each major centre of population, and at least two in each deanery.

• To invest in the renewal of a number of churches to ensure that each major area of population has at least one larger (150 Average Weekly Attendance (AWA)) healthy and sustainable church by 2030.

• To encourage every benefice to launch a new worshipping community to enable a wider choice of ways to access church. Examples might include Forest Church, Café Church.

• Underpinned by, amongst other things to enable our clergy and key lay leaders to be equipped with the range of skills necessary to enable the transformation – ‘Equipping Ministers for Mission’.

During the year we held a further series of Open Conversations to share with parishes good news stories of how others are making good progress on our priorities. These conversations featured videos of new worshipping communities (Walking Church and a Taize/ Benediction service), work to transform communities (Community Link, a Community Fridge and Town Centre chaplaincy), work to share hope with children and young people and ways we’re worshipping God across the diocese.

• PRIORITY 2:

Supporting and enabling churches to become healthier and more sustainable by an effective Mission Accompanier programme, and providing grant funding through the Healthier Churches Fund.

By the end of the year 18 Mission Accompaniers were actively engaged, covering 45 churches through 26 pairings. Some group and team ministries have chosen to work with each church separately, some are working together, but with breakouts as appropriate for individual churches.

The programme aims to see at least 100 churches thriving as a result of having been supported in creating and delivering a good health and sustainability plan. The first few plans have been developed, and six grants to parishes have been made on the basis of their health and sustainability plans. Three of these have involved supporting the employment of childrens, families or youth workers.

The Mission Accompaniers meet in four bi-monthly huddle groups with a Co-Ordinator, where good practice is shared and input on keeping the work on track is given.

• PRIORITY 3:

Enabling our Calling Young Disciples (CYD) to move towards a conclusion effectively, seeking to maximise its achievement of desired outcomes. Supporting the Resourcing Church projects to emerge from the pandemic and regain momentum against desired project outcomes.

Calling Young Disciples The first and main phase of the Calling Young Disciples project concluded in November 2022 with a Celebration Event to thank all those involved and to mark all that had been achieved.

During the principal phase of the project 50 churches engaged with CYD and the Mission Enablers (target 50), and over 285 volunteers have been trained and supported (target 250) – of which 68 are ‘Lead Volunteers’ (target 40). Whilst these engagement and activity levels are at, or ahead of, the hoped-for targets, the number of new worshippers has remained below the target of 600 and is currently around 400. Consequently, and using funds underspent during the pandemic, the project has now entered an ‘expansion phase’ which will continue up to July 2023, and which has a focus on working with a small number of specific churches in the existing portfolio where it is felt extra focused support and leadership might generate an additional growth of 200 worshippers. Initial signs suggest there appears to be good energy and momentum building in these extension placements, with lots of new contacts already being established - leading to cautious optimism for delivery of the hoped-for outcomes.

Discussions are progressing with the National Church on the form and timing of the evaluation of both the overall and extension phases, that both they and the Diocese are desiring.

Resourcing Churches Both Resourcing Churches continue to recover well following the aftermath of the Covid Pandemic.

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Directors Report

Achievements and Performance

Top Church is in use 6 days a week, and now has two in-person services taking place each Sunday - at 11:00am and 4:00pm. Average Weekly Attendance is currently approximately 135, of which around 45 are under 16s. In the last 12 months there have been 4 baptisms and 7 confirmations within the congregation. There is a large and growing portfolio of support and outreach programmes taking place each week which are increasingly growing the church as the central hub for community activity. The resourcing of other churches in the local area is occurring regularly, through the leading of services, and by providing worship and/or children’s activities. New staff positions of a Community Hub Leader and an Assistant Operations Manager have been recruited to assist in delivering the vision to renew St Johns & St Francis as Community Hub churches. Regular congregation giving has remained static and ultimately behind where it needs to be, with the impact of the cost-ofliving crisis been felt across the local community and within the congregation. Consequently, the Parish Giving Scheme (PGS) is to be built into the welcome provided to new joiners, who may not be aware of how to give on a regular basis.

All Saints Worcester (ASW) is thriving, with a steady flow of new people joining the church over the last 6 months, resulting in the church being full or nearly full every Sunday morning in the early part of 2023. Average Weekly Attendance is now approximately 460 – with the numbers of children and young people steadily growing, and currently standing at around 120. The first church renewal supported by ASW at St Peter’s Bengeworth is now in its second year, and under the leadership of the Planting Vicar, Andy Smith, is progressing well – with a congregation growth so far of around 60.

ASW continues to resource the development of informal worship gatherings at both St Peter’s Inkberrow and Severnside Parishes and have delivered bespoke training to teams from both of these churches. The reordering project at St Helen’s is now underway and good progress is being made.

Both Resourcing Churches have concerns regarding their ongoing financial sustainability at the end of the SDF funded project in 2025, and are working with the Diocesan Team on options and possible actions to manage/mitigate these risks.

• PRIORITY 4:

To enable the launch of a Church Buildings Management Partnership which will provide support to our smallest churches in managing their building.

As a diocese, we are continuing to take a lead regionally and nationally, on the development of the ‘Church Buildings Management Partnership’ concept, to make it implementable. We have registered a Charitable Incorporated Organisation (CIO), which will be able to take a minor legal interest in each building in the scheme in order to be in a position to buy insurance and commission maintenance work. Work with a small number of parishes on a pilot basis is beginning. This will work out the details that will make this scheme practical and attractive, before rolling it out more widely. We await input from the national church on negotiation with the major insurance companies which will be an important part of the funding of the project. The national church have committed to £10k of funding per diocese to help establish this scheme and we are hopeful that we will find ways of working with neighbouring diocese to realise benefits of scale.

• PRIORITY 5:

To ensure that the new Ministry Share system is operating well, and that transition is happening effectively.

The Ministry Share system was introduced from January 2022. Whilst a full review of the implementation and the first year will take place during 2023, initial perspectives are that the system has worked well in its first year.

It has clearly provided greater transparency on the costs of ministry, and that has been welcomed. This has enabled conversations to take place to highlight the degree of subsidy of ministry in some benefices. The process of requesting grants from the Ministry Support Fund and making allocation decisions generally worked well in the first year of the system. Half of our benefices (37 out of 73) needed some form of support from the Ministry Support Fund in the first year. The intention is that this reduces over time, although the currently high level of energy costs will make this challenging. 23 of the 37 were Lowest Income Communities, where we expect that ongoing support will be required to enable ministry in our poorest communities.

27 benefices made a contribution in excess of their Ministry Share allocation into the Ministry Support Fund to enable other benefices to receive transitional support. These totaled £209k, a lower total than originally hoped due to the surge in energy costs. Total contributions to Ministry Share totalled £3,968k, which represented 95.5% of Ministry Share requests, once Ministry Support Fund grants were taken into account.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report

Ministry Development

4 out of 5 candidates were recommended for ordination training in 2022. There are 10 ordinands training, down from 16 last year and 21 the previous year. There were 6 participants in the Growing Leaders Course in 2022. Only 1 new person has begun training for Reader Ministry, with 5 in their second year, and 4 newly licensed. With Authorised Lay Ministers (ALM) training, a pilot project saw two small deanery groups complete Worship Leader training. A cohort of 29 are currently training (across 3 ALM strands). In addition to the ongoing training of new ministers (as described above), the Ministry and Discipleship Team organised over 40 training and support events, with a total attendance of over 570. The Training and Events Administrator has supported the DBF team as a whole (excluding the Education Team) in a total of 66 events, with over 830 attendees.

One significant new development is a new ‘Auxiliary Pathway of Discernment and Formation’. As from September 2022, there are 15 participants on this exciting and demanding journey. Training is being carried out within the Diocese, including regular input from each bishop. Selection will happen through the existing (new) national system. The scheme is oriented towards locally-focused ordained ministry – typically a self-supporting assistant role, perhaps with day-to-day ministerial responsibility for one or more smaller churches in a larger benefice or team. The pathway holds considerable promise, and is receiving considerable investment of time, care and energy.

One other significant new development: Autumn 2022 saw the inauguration of ‘FCiLL’: Foundation Courses in Local Leadership. This is not a new course, but a new way of organising training already on offer and shaping new material. Its focus is very much on the practical and pragmatic, supporting and equipping lay people to lead in parish life and mission. That said, several of the sessions are also proving very helpful for clergy.

Support for Church Buildings

The team and the Diocesan Advisory Committee (DAC) continue to offer support to parishes as they care for their buildings and churchyards, and develop proposals for restoring or developing their buildings. Visits to churches by the DAC are recommended at the early stages of proposals – 12 were held in 2022 – though the availability of volunteer DAC members and advisers places a strain on how many full visits can be made as opposed to visits that were just from staff members (sometimes with the Archdeacon) – 95 of these in 2022. In 2022, 54 applications for Faculty were considered by the DAC (2021 – 45, 2020 – 44, 2019 – 97), and 148 for Archdeacon’s List B consent (2021 – 104, 2020 – 93, 2019 – 108).

NB. 2020 saw major rule changes come into law that brought more matters out of requiring a Faculty, in addition to the drop in cases due to the pandemic.

The team also supported those parishes who were considering the future and potential closure of their church, a workstream that has increased since the pandemic. The former church of St George, Redditch, was sold in 2022, having closed in 2012. The closure of the church of St Peter, Upper Gornal, was finally confirmed by the Church Commissioners toward the end of the year, with the transfer to the DBF set for January 2023. Support has also been provided to the Dean of Smaller Churches as she undertakes her work, including in the formation of the Church Buildings Management Partnership.

Education

This year the Education Team has been successful in becoming the first Diocese in the country to be able to offer National Professional Qualifications for teachers (NPQs). Over the course of 2023, the team will deliver both the National Professional Qualification for Senior Leaders (NPQSL) and the National Professional Qualification for Leading Teaching (NPQLT). As well as providing much needed qualifications for the teachers in our schools it will also generate a modest amount of additional income.

The work carried out by the Education Team has continued to focus on providing a range of core services to schools in line with the Diocesan Board of Education (DBE) measure. In response to this we also offer three Service Level agreements (SLA). The Training and Support SLA provides training for schools for them to become effective church Schools, with a theologically rooted Christian vision, whilst preparing them for Statutory Inspection of Anglican and Methodist Schools (SIAMS) inspection, the School Effectiveness SLA provides bespoke packages of support to improve the quality of leadership, teaching and learning, and the third SLA improves governance by delivering training to governors.

In response to a growing need for Mental Health and Wellbeing support, the DBE, through its SLAs, has developed a suite of services, training and counselling to help schools deal with the increasing rates of stress and anxiety in the

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Directors Report

Achievements and Performance continued

workplace. In some cases, this leads to extensive absence, resignation or early retirement. The support has been well received with many schools accessing the suite of support and senior leaders more readily returning to post.

During the year the Education Team supported the facilitation of building projects in Voluntary Aided schools valued at over £450,000.

The Education Team has successfully set up the second Diocesan Multi Academy Trust for Church of England Schools in Dudley. The Elements Diocesan Learning Trust converted two Primary schools in November 2022 with a further two Primary schools joining in February 2023.

Net Zero Carbon

Energy Audits were undertaken on 45 churches in the Greater Dudley, Kidderminster & Stourport and Redditch & Bromsgrove Deaneries. These assess the current energy use and propose lower carbon solutions, highlighting the potential savings in carbon and cost to a building owner. Those in Dudley were funded by the DBF’s Total Return budget, those in Worcestershire through funding from Worcestershire County Council’s ‘Zero Carbon Ready Worcestershire’ scheme. Although the results have been limited by lack of comparative use over recent years and difficulty in predicting future financial savings due to the rising cost of energy, they will support these churches as they consider how to decarbonise and contribute to the Church of England meeting its Net Zero target in 2030. Further audits are planned for 2023 in high use/emitting churches in the county as we seek to work closely with the (circa) top 20% of carbon use/emitting churches to put in place Net Zero Action Plans – as required by the Church’s Routemap to Net Zero.

New Faculty Rules came into law on 1 July with a view to making permissions more straightforward for works to improve the environmental sustainability of a church and, consequently, more difficult to obtain permission for works that would negatively contribute. For many, this has meant that improvements to lighting, insultation etc., has been a simpler step but the main issue has been the need for a full faculty for the replacement of a gas or oil boiler like-for-like and therefore periods of time without heating – and not without at least first considering lower carbon alternatives.

There has been a clear increase in the demand for DAC advice on matters of heating and decarbonising in the past year, more than can currently be serviced by the volunteer advisers, so support to parishes has not been as available as we would hope it to be. Whilst the appointment of more volunteer DAC advisers may be possible, we will be investigating the options available in the Net Zero package form the Archbishops’ Council’s triennium funding for professional expertise to build capacity, possibly in tandem with other regional dioceses.

2023 Priorities Our priorities for 2023 are:

• To fully develop and communicate our transformation programme, and a viable funding plan.;

• Continuing our Mission Accompanier Programme, which seeks to support and enabe churches to develop health and sustainability plans, and where appropriate, to provide grant funding through the Healthier Churches Fund;

• Increase the number of Children, Families and Youth workers around the diocese, with a target of having a total of ten in place by the year end.

• To make initial progress with our priorities for “Renewals” – a programme to create churches with an Average Weekly Attendance of at least 150, and for New Worshipping Communities through the appointment of a parish based enabler.

• To fully develop the support plan needed to “Equip Ministers for Mission” – through Mission Accompaniment, Coaching and Training, together with the support resources required.

• To recruit well to fill a number of senior vacancies.

During March 2023 the National Church announced in-principle support for the renewals element of the transformation programme of £6.8 million, and unconditional grant of nearly £1 million for capacity building. This, combined with decisions by Bishop’s Council to allocate a significant proportion of the Healthier Churches Fund to our priorities means that the core of our transformation programme is funded for the next five years.

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Directors Report

Financial Review

Financial Review

Total incoming resources for the year was £10,040k (2021 - £9,740k). The principal funding source was from Ministry Share which represents 42.1% (2021 - 43.6%) of total incoming resources. This was a new system for 2022, which meant that Benefices applied for grants to help fund any gaps between the costs of ministry in their Benefice and what they could afford to pay. This resulted in grants being awarded totaling £1,160k as split between £656k from the Ministry Support Fund and a further £504k from the Lowest Income Communities Grants. These grants means that the Net Ministry Share Requested (after grants) should have been received in full from the Benefices. However, due to the high cost of inflation and the raising costs of energy meant that instead of 100% received only 95.5% was received. Total Ministry Share received during the year was £4,227k (2021 - £4,244k) representing 95.5% (2021 - 73% - significantly lower due to the old Parish Share system) of the total requested.

Endowments decreased by £2,028k (2021 - £5,975k increase) this is because of a decrease in investment valuations. From the endowment £963k was transferred to general funds under Total Return Accounting (2021 - £3,400k), see below and note 29. Total resources expended were £8,824k (2021 - £8,812k).

The Statement of Financial Activities on page 20 shows an overall decrease in funds of £2,257k (2021 - £5,698k increase), of which £3,473k related to unrealised investment losses, and £856k (2021 - £1,127k) from surpluses on property sales.

The underlying result for the year was an operational surplus of £360k plus an investment of £153k in our strategic projects (2021 - £269k surplus plus an investment into strategic projects of £200k). The reported results included the cash impact of the final clergy pension deficit repayments of £191k.

Despite this, a surplus was achieved due to continued cost savings and additional income from grants and the proceeds from the sale of donated books, which was £103k. Some of these savings were planned as part of the overall cost reduction plan, and others were due to decrease in number of clergy recruited. The cost savings outweighed the fall in the Ministry Share and therefore led to the surplus.

Investment Policy

The Board’s investment policy is reviewed regularly by the Finance and Resources Committee, although the ultimate responsibility remains that of the Worcester Diocesan Board of Finance. The Committee seeks to maximise long-term income without exposing capital to undue risk or compromising the Board’s ethical investment policy, which essentially follows the national guidance established by the Church of England’s Ethical Investment Advisory Group. In the current investment climate, we have maintained regular contact with and received advice from CCLA, our investment advisors. We have sought to maintain and grow the overall income yield, whatever movements in capital values.

Reserves Restricted and endowment funds

As set out in note 25 the WDBF holds and administers several restricted and endowment funds. As at 31 December 2022 restricted funds totaled £2,833k (2021 - £2,815k) and endowment funds totaled £66,309k (2021 - £68,337k). This includes the Diocesan Unapplied Total Return funds which totaled £17,945k (2021 - £22,319k) – see below.

Total Return Accounting

The law governing the use of Diocesan Endowment funds changed in 2016. Traditionally, permanent endowment funds draw income only, maintaining capital in perpetuity for the benefit of future generations.

A Total Return investment approach allows the release of both income and capital gains for use. The Directors adopted Total Return accounting for the Diocesan Stipends Capital Fund (DSCF) with effect from 1st January 2021 by reference to the following:

• The date used for the initial value, or base year, of the trust for investment was 31st December 1995. At this point the DSCF balance was £15,598k. This is taken as the original value of the endowment.

• CPIH was used to uplift the trust for investment giving rise to a valuation as at 31st December 2022 of £28,991k (2021 - £26,538k). The Unapplied Total Return fund as at 31st December 2022 amounted to £17,945k (2021 - £22,319k).

The Board can then release funds which are transferred to the income fund to fund stipends. This enables other funds which would have normally been used for the funding of stipends as the Board sees fit. In turn this has meant the Board has made further transfers into designated funds as follows:

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report

• Transitional Support for Parishes - £109k in 2022, which is based on an inflation adjustment amount of £100k per annum for six years – this is help Parishes transition to the new ministry share system. This was further supported by an initial allocation of £600k of unrestricted reserves into the Ministry Support Fund in 2021, and

• Net Carbon Zero Fund – £27k in 2022, which is based on an inflation adjusted amount of £25k per annum for six years – this is to provide some expert resource to help the diocese achieve the 2030 Net Zero Carbon target.

Total Return Accounting had an impact on the allocation of income to the general and endowment funds. In years prior to 2021, all income arising on the DSCF was allocated to general fund on the understanding that the value of stipend payments

would far exceed the value of any income. On the introduction of Total Return Accounting, all such income is allocated to the UTR within the endowment fund with subsequent transfers to the general fund.

Designated funds

The Board may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed on an annual basis and returned to the general fund in the event that the purpose of the designation is no longer considered to be adequate justification for their retention. A description of each reserve together with the intended use of the reserve is set out in note 28. At 31 December 2022 total designated reserves were £3,495k (2021 - £3,701k). See note 28 for further details.

Reserves policy Free reserves

It is the Board’s policy to maintain the year end general unrestricted reserves position, excluding tangible fixed assets, at a level of 4.5 months’ expenditure. This should provide sufficient liquid funds to allow the Board to meet its commitments across the year.

As at 31 December 2022 the general unrestricted fund’s net assets, excluding tangible fixed assets was £4,115k (2021 - £4,088k) and during 2022 total resources expended in unrestricted funds was £6,881k (2021 - £7,689k), providing for over 7 months of expenditure (2021 – 6 months). Our budget suggests that expenditure will grow – as commented previously, 2022 expenditure was lower than anticipated.

Fundraising

Funds were raised in 2022 for our partner dioceses of Peru and Morogoro: £7,081 was raised for the Diocese of Peru; £470 for the Diocese of Morogoro; £1,000 for Berega Hospital, Tanzania; £121 for Morogoro Sewing Academy. As a result of the pandemic, we launched a Diocese of Worcester Ministry fund in 2020. The aim was to raise enough to cover the stipend of one vicar for one year to assist with the continued reduced income caused by Covid-19. We encouraged potential donors to support their local church as their first priority and if they were able to make an additional gift to this Ministry fund. Through donors’ generosity £11k was received in 2022 (2021 - £16k).

Risk Policy

The Directors have continued the process of examining the major strategic and operational risks which the DBF faces. They hold and monitor a register of the significant risks, assessing the probability of occurrence and likely impact if they were to occur, divided into six operational areas.

The most significant risks in this analysis, and plans for mitigation, are:

• High inflation in both the cost of living for individuals, and in the cost of heating churches, lead to lower receipts of Ministry Share, which are insufficient to meet the financial commitments and the strategic plans of the Diocese:

• The clarity given by the new Ministry Share system brings forward visibility on likely receipts;

• Regular and active communication with parish treasurers to maintain two-way communication;

• The launch of a Ministry Support Fund provides support to parishes, encourages medium term planning. The fund will be supplemented for 2023 to provide additional support;

• Monthly monitoring of receipts and projection for the remainder of the year;

• Proactive support by the Stewardship Officer with struggling parishes.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report

Risk Policy (continued)

• Falling numbers and ageing of attendance / membership within the Church in the diocese leading to churches becoming unsustainable:

• Agree the detailed planning behind the Diocesan Transformation Strategy and move ahead into implementation;

• Ensure the Resourcing Churches projects are effective, including the planting and renewing of a number of additional churches;

• Development of a Healthier Churches Fund to resource parishes who have developed Health and Sustainability plans;

• Continued provision of Mission Accompaniers to support parishes develop and implement such plans.

• Serious safeguarding case:

• Ensure swift action taken if a situation does arise;

• Ensure effective safeguarding provision is available, through the diocesan safeguarding team;

  • training officers and caseworkers. This will include use of core groups to bring in a wider team where appropriate;

• Ensure safer recruitment, training, policies applied and audited at diocesan and parish level;

• Ensure adequate insurance is in place.

• Complexity & Capacity: The transformation strategy on top of sustaining ‘business as usual’ provides significant complexity and workload for a small DBF team:

• Plans have clear priorities and these have been developed with an eye to the capacity to deliver;

• Many of the priorities will lead to additional employment to deliver the work e.g. parish based Childrens, Families and Youth workers;

• We are seeking funding from the national church to add the capacity to deliver at both parish level (especially for renewals) and for the DBF rather than requiring it to be funded through Ministry Share.

It is recognised that there are reputational risks to the DBF associated with each of these key risks. As well as mitigating risk in each of these areas the DBF’s Communications team bring expertise to support parishes and the bishops in facilitating the mission of the church across the Diocese.

The directors have established a framework of six risk registers, each of which is reviewed periodically by an appropriate committee. An overview of key risks is considered by Bishop’s Council along with the Risk Policy. The Audit, Risk and Challenge Committee reviews the DBF’s approach to risk management on an annual basis, including reviewing the risk policy.

Remuneration Policy

The Board’s policy regarding level of remuneration is that salaries are those appropriate to recruit and retain staff in the context of the job market. Remuneration for more senior roles is set so as to involve an element of “sacrifice” compared to the secular market, but to be broadly in line with that of equivalent roles in similar dioceses.

Investment Performance

Overall performance

Investments are held in both glebe and general funds. The total value of investments at 31 December 2022 was £43.1m (2021 - £46.7m) and the total return on investment saw share value drop by 12% (2021 – increase of 14%).

Glebe investments

Investments are in glebe funds, primarily to generate a sustainable income to continue funding clergy stipends. Agricultural, commercial and residential land and buildings were valued at £15.46m at 31 December 2022 (2021 - £15.48m). Rents receivable amounted to £219k (2021 - £252k) – an income yield of 1.4% (2021 – 1.6%).

Investment securities (Glebe and General)

Investments in equity and fixed interest securities were valued at £26.3m at 31 December 2022 (2021 - £29.3m). Income from these securities amounted to £878k (2021 - £762k) – a yield of around 3.3% (2021 – 2.6%), which is considered satisfactory.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Directors Report Statement

Statement of Directors’ Responsibilities

The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently

• observe the methods and principles in the Charities SORP

• make judgements and estimates that are reasonable and prudent

• state whether applicable UK Accounting Standards have been followed, subject to any

• material departures disclosed and explained in the financial statements

• prepare the financial statements on a going concern basis unless it is inappropriate to

• presume that the charitable company will continue in business

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to Disclosure of Information to Auditors

As far as the directors are aware there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware and each director has taken all the steps he ought to have taken as director in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

In approving this Directors’ Report, the Board are also approving the Strategic Report included herein in their capacity as company directors.

On Behalf of the Board: The Reverend Andy Todd Date: 10 May 2023

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Auditors Report

Independent Auditor’s Report to the Members and Trustees of the Worcester Diocesan Board of Finance Limited

Opinion

We have audited the financial statements of The Worcester Diocesan Board of Finance Limited (‘the charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December

• 2022 and of its income and receipts of endowments and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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Auditors Report

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Auditors Report

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were employee legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and completeness of income recognition and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Risk and Challenge Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

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

Kerry Brown (Senior Statutory Auditor)

For and on behalf of Crowe U.K. LLP, Statutory Auditors

Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG

This report is unsigned

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Statement of Financial Activities

Statement of Financial Activities for the Year Ended 31 December 2022

		Unrestricted	Restricted	Endowment	Total	Total
	Notes	Funds	Funds	Funds	2022	2021
		£’000	£’000	£’000	£’000	£’000
INCOME AND ENDOWMENTS
Donations
- Parish contributions	2	4,018	209	-	4,227	4,244
- Archbishops’ Council	3a	823	1,368	-	2,191	1,866
- Other donations	3b	122	368	-	490	414
Charitable activities	4	649	63	-	712	687
Other activities	5	466	-	-	466	387
Investments	6	135	-	963	1,098	1,015
Other– gains on sale of tangible fxed
asset properties		33	-	823	856	1,127
		6,246	2,008	1,786	10,040	9,740
EXPENDITURE
Raising funds	7	-	-	59	59	64
Charitable activities
- Contributions to Archbishops’ Council 8		415	-	-	415	398
- Parish Ministry	9	5,402	1,389	-	6,791	6,223
- Support for Ministry	10	798	363	-	1,161	1,327
- Support for Schools	11	266	132	-	398	337
Other– Old Palace	33	-	-	-	-	463
		6,881	1,884	59	8,824	8,812
Net income before
investment gains		(635)	124	1,727	1,216	928
Net gains on investments		(382)	(128)	(2,963)	(3,473)	4,753
Net income		(1,017)	(4)	(1,236)	(2,257)	5,681
Transfers between funds	26	770	22	(792)	-	-
Other recognised gains / (losses)
Actuarial gain / (loss)
on defned beneft pension scheme	24	-	-	-	-	17
Net movement in funds		(247)	18	(2,028)	(2,257)	5,698
Total funds brought forward	25	9,379	2,815	68,337	80,531	74,833
Total funds carried forward	25	9,132	2,833	66,309	78,274	80,531

All incoming resources and resources expended derive from continuing activities. The notes on pages 22 to 46 form part of these financial statements.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Income and Expenditure Account

Income and Expenditure Account Year Ended 31 December 2022

Total income Expenditure Operating (defcit)/surplus for the year Net gains /(losses) on investments Net (expenditure) for the year Other comprehensive income: Net assets transferred from endowments Total comprehensive (expenditure)/income	2022 2021 £’000 £’000 8,254 8,162 (8,765) (8,812)
	(511) (650) (510) 373
	(1,021) (277) 792 3,205
	(229) 2,928

The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities. The notes on pages 22 to 46 form part of these financial statements.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Balance Sheet

Balance Sheet as at 31 December 2022

Company Number 00271752

Company Number 00271752
Notes FIXED ASSETS Tangible assets 16 Investments Investment property 17 Investments 17 CURRENT ASSETS Debtors 18 Cash at bank 19 CREDITORS Amounts falling due within one year 20 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 21 NET ASSETS FUNDS OF THE CHARITY Endowment funds 25 Restricted Income funds 25 Unrestricted Income funds: - General funds 25 - Designated funds 25	2022 £’000 978 606 1,584 (1,119)	2022 £’000 34,806 15,460 27,690	2021 £’000 630 603	2021 £’000 33,654 15,480 31,269
		77,956 465		80,403 161
			1,233 (1,072)
		78,421 (147)		75,111 (33)
		78,274		80,531
		66,309 2,833 5,637 3,495		68,337 2,815 5,678 3,701
		80,531		80,531

Note: The above funds include investment revaluation reserves as follows: Endowment funds £22,360,000 (2021 £25,078,000) Restricted Income funds £960,000 (2021 £1,088,000) General funds £2,970,000 (2021 £3,101,000)

The financial statements were approved by the Board of Directors on and were signed on its behalf by:

The Reverend Andy Todd

Date: 10 May 2023

The notes on pages 22 to 46 form part of these financial statements

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Cash Flow Statement

Cash Flow Statement for the Year Ended 31 December 2022

Notes Net cash fow from operating activities Cash fows from investing activities Dividends, interest and rent from investments Proceeds from the sale of: - Tangible fxed assets - Investments Purchase of: - Tangible fxed assets for the use of the WDBF - Fixed asset investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and Cash Equivalents at 1 January Cash and Cash Equivalents at 31 December Reconciliation of net movements in funds to net cash fow from operating activities Net income before investmentgains for the year Adjustments for: Depreciation Charges Dividends, interest and rent from investments Actuarial gain/(loss) on pension scheme (Surplus) on sale of functional assets (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash used in operating activities Analysis of cash and cash equivalents Cash in Hand Notice Deposits	2022 £’000 1,098 1,614 - (1,938) (497) 28 (1,098) - (833) (348) 161	2022 £’000 (874) 277	2021 £’000 1,015 1,902 63 (1,136) (3,507)	2021 £’000 (784) (1,663)
			32 (1,015) 17 (1,127) 400 (19)
		(597) 2,603		(2,447) 5,050
		2,006		2,603
		1,216 (2,090)		928 (1,712)
		(874)		(784)
		606 1,400		603 2,000
		2,006		2,603

The notes on pages 22 to 46 form part of these financial statements

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Notes to the Financial Statement

Year Ended 31 December 2022

1. PRINCIPAL ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2019), the Companies Act 2006 and applicable accounting standards (FRS102).

The principal accounting policies and estimation techniques are as follows:

a) Income

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

• i) Ministry Share and donations for the Ministry Support Fund are recognised as income of the year in respect of which it is receivable up to 10 February 2023.

• ii) Rent receivable is recognised as income in the period with respect to which it relates.

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

• iv) Grants received which are subject to pre-conditions for entitlement specified by the donor which have

• not been met at the year-end are included in creditors to be carried forward to the following year.

• v) Parochial fees are recognised as income of the year to which they relate up to 10 February 2023.

• vi) Donations other than grants are recognised when receivable.

• vii) Gains on disposal of fixed assets for the WDBF’s own use (i.e. non-investment assets) are accounted for as other income. Losses on disposal of such assets are accounted for as other expenditure.

• viii) Stipends fund income. The Stipends Fund Capital account is governed by the Diocesan Stipends’ Fund Measure 1953 as amended, and the use of the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting.

b) Expenditure

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

• i) Costs of raising funds are constrained to investment management costs of glebe and any other investment properties.

• ii) Charitable expenditure is analysed between contributions to the Archbishops’ Council, expenditure on resourcing mission and ministry in the parishes of the diocese and expenditure on education and Church of England schools in the diocese.

• iii) Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the WDBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

• iv) Support costs consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.

• v) Pension contributions. The WDBF’s staff are members of the Church Workers Pension Fund and clergy are members of the Church of England Funded Pensions Scheme (see note 24). The pension costs charged as resources expended represent the WDBF’s contributions payable in respect of the accounting period, in accordance with FRS102. Deficit funding for the pension schemes in which WDBF participates is accrued at current value in creditors distinguished between contributions falling due within one year and after more than one year.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Notes to the Financial Statement Year Ended 31 December 2022

c) Tangible fixed assets and depreciation

Freehold properties

Depreciation is not provided on buildings as any provision (annual or cumulative) would not be material due to the very long expected remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value. The WDBF has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from obsolescence. In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value. The Trustees perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount.

Investment properties

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

Parsonage houses

The WDBF has followed the requirements of FRS102 in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The WDBF is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at cost.

d) Other tangible fixed assets

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

Fixtures and Fittings 20% per annum straight line basis

Leasehold improvements are depreciated on a straight-line basis over the course of the lease.

e) Other accounting policies

• i) Fixed asset investments are included in the balance sheet at market value and the gain or loss taken to the Statement of Financial Activities.

• ii) Leases. The WDBF has entered only into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure in the year to which it relates.

• iii) Taxation. The company is a registered charity and is not liable to corporation tax in this year.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

23

Notes to the Financial Statement Year Ended 31 December 2022

f) Fund balances

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

• Unrestricted funds are the WDBF’s charity corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the WDBF. There are two types of unrestricted funds:

• General Funds which the WDBF intends to use for the general purposes of the WDBF and

• Designated Funds set aside out of unrestricted funds by the WDBF for a purpose specified by the Trustees.

• Restricted Funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.

• Endowment Funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the WDBF (Stipends Fund Capital and Parsonage Houses) there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.

“Special trusts” (as defined by the Charities Act 2011) and any other trusts where the company acts as trustee and controls the management and use of the funds, are included in the company’s own financial statements as charity branches. Trusts where the WDBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are summarised in the notes to the financial statements.

g) Key judgments

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

1. The Trustees perform annual impairment reviews (as explained in c above), and have concluded that there are no indications of material impairment;

2. Freehold properties are not depreciated for the reasons set out in c) above;

3. The assumptions underpinning the pension scheme liabilities are set out in note 24 below;

4. Receipts of Ministry Share, Donations for the Ministry Support Fund, and Fees are recognised in the year under review up to 10 February of the following year.

h) Going concern

Having reviewed the funding facilities available to Worcester DBF together with the forecast cash flows, the trustees conclude that that charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the charity’s financial viability. Accordingly, the financial statements are prepared on the going concern basis.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

24

Notes to the Financial Statement Year Ended 31 December 2022

Total Funds 2022 £’000 2. PARISH CONTRIBUTIONS Current year’s allocation 5,313 Ministry Support Fund Grants (656) Lowest Income Communities Grants (504) 4,153 Shortfall in contributions (185) 3,968 Arrears for previous years 50 4,018 Ministry Support Fund donations - Restricted 209 TOTAL 4,227	Total Funds 2021 £’000 5,775 - -
	5,775 (1,540)
	4,235 9
	4,244 -
	4,244

	2022	2022	2022	2022	2021	2021
	Net Ministry	Share	Total	Total	Total	Total	(Decrease)	(Decrease)
	Request	Shortfall	Received	Received	Received	Received	Increase /	Increase /
	£’000	£’000	£’000	%	£’000	%	£’000	%
Deanery
Greater Dudley	997	43	954	95.7	1,011	75.1	(57)	(5.6)
Kidderminster & Stourport	549	5	544	99.1	599	77.2	(55)	(9.2)
Malvern & Upton	599	45	554	92.5	630	76.5	(76)	(12.1)
Pershore & Evesham	710	31	679	95.6	671	65.7	8	1.2
Redditch & Bromsgrove	507	31	476	93.9	532	71.0	(56)	(10.5)
Worcester	791	30	761	96.2	792	74.8	(31)	(3.9)
	4,153	185	3,968	95.5	4,235	73.3	(267)	(6.3)

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

25

Year Ended 31 December 2022

Notes to the Financial Statement

Notes to the Financial Statement Year Ended 31 December 2022
Unrestricted Funds 2022 £’000 3a. ARCHBISHOPS’ COUNCIL Lower Income Communites Funding 776 Archbishops’ Council – RME grant - Registry-Church Commissioners 47 Donation in Kind - Ministry Hardship Grants for Individuals - Energy Grant for Parishes - SDF Grant - Calling Young Disciples - SDF Grant - Resourcing Churches - SDF Grant - Capacity Grant Funding - 823 3b. OTHER DONATIONS Benefact Trust Grant - Education Grants 13 Parsonage Grants 50 Ministry Restricted Donations - Sundry Income 32 Safeguarding Income 27 Income from sale of donated books - Furlough Grant - 122 4. CHARITABLE ACTIVITIES Statutory fees 484 Education Service Level Agreements 137 Education Academy Conversion Fees 21 Trust Income - Clergy Widows and Orphans Fund - - Ordination Candidates Fund - -Church Schools Improvement and Maintenance Fund 7 - Sundry Trust Funds - 649 5. OTHER ACTIVITIES Insurance claim 5 Rental income from parsonages 291 Rental income from other property 49 Bishop’s offce – rent, salary and service charge 121 466	Restricted Funds 2022 £’000 - 122 - 16 46 283 101 727 73 1,368 122 132 - 11 - - 103 - 368 - - - 11 32 - 20 63 - - - - -	Reanalysed Total Total Funds Funds 2022 2021 £’000 £’000 776 750 122 187 47 45 16 - 46 - 283 - 101 149 727 670 73 65 2,191 1,866 122 117 145 118 50 40 11 16 32 50 27 29 103 - - 44 490 414 484 466 137 146 21 - 11 8 32 33 7 7 20 27 712 687 5 3 291 245 49 45 121 94 466 387
			1,866
			117 118 40 16 50 29 - 44
			414
			466 146 - 8 33 7 27
			687
			3 245 45 94
			387

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

26

Notes to the Financial Statement Year Ended 31 December 2022

Unrestricted Funds 2022 £’000 6. INVESTMENTS Dividends receivable 135 Interest receivable - Rents receivable - 135 7. RAISING FUNDS Glebe Agent’s fees and expenses - (including registration costs) 8. CONTRIBUTIONS TO ARCHBISHOPS’ COUNCIL Training for Ministry 216 National Church responsibilities 159 Retired clergy housing costs 81 Pooling of ordination candidates’ costs (48) General Synod Representatives’ Expenses 7 415 9. PARISH MINISTRY Stipends and National Insurance 2,364 Pension costs 644 Housing costs – Council Tax 248 Parsonage Houses maintenance 899 Removal, resettlement and other grants (note 12) 45 Lowest Income Communities Grants (note 12) 41 Resourcing Churches - Energy grants to Parishes (note 12) - Other expenses 110 Healthier Churches Grants (note 12) 280 Support costs - Administration (see note 13) 771 5,402 10. SUPPORT FOR MINISTRY Ministry and Discipleship 244 Calling Young Disciples project 131 Church Buildings Team 121 Capacity Restructuring - Safeguarding 122 World Church Links 3 Ordination Candidates Allowances and tuition fees 15 Ministry Hardship Grants for individuals (note 12) - Net Carbon Zero 17 Support costs – Administration (see note 13) 145 798 11. SUPPORT FOR SCHOOLS Education team 218 Support costs – Administration (see note 13) 48 266	Unrestricted Funds 2022 £’000 6. INVESTMENTS Dividends receivable 135 Interest receivable - Rents receivable - 135 7. RAISING FUNDS Glebe Agent’s fees and expenses - (including registration costs) 8. CONTRIBUTIONS TO ARCHBISHOPS’ COUNCIL Training for Ministry 216 National Church responsibilities 159 Retired clergy housing costs 81 Pooling of ordination candidates’ costs (48) General Synod Representatives’ Expenses 7 415 9. PARISH MINISTRY Stipends and National Insurance 2,364 Pension costs 644 Housing costs – Council Tax 248 Parsonage Houses maintenance 899 Removal, resettlement and other grants (note 12) 45 Lowest Income Communities Grants (note 12) 41 Resourcing Churches - Energy grants to Parishes (note 12) - Other expenses 110 Healthier Churches Grants (note 12) 280 Support costs - Administration (see note 13) 771 5,402 10. SUPPORT FOR MINISTRY Ministry and Discipleship 244 Calling Young Disciples project 131 Church Buildings Team 121 Capacity Restructuring - Safeguarding 122 World Church Links 3 Ordination Candidates Allowances and tuition fees 15 Ministry Hardship Grants for individuals (note 12) - Net Carbon Zero 17 Support costs – Administration (see note 13) 145 798 11. SUPPORT FOR SCHOOLS Education team 218 Support costs – Administration (see note 13) 48 266	Restricted Endowned Funds Funds 2022 2022 £’000 £’000 - 743 - 1 - 219 - 963 - 59 - - - - - - - - - - - - 362 - - - - - - - - - - - 749 - 267 - 11 - - - - - 1,389 - - - 101 - - - 73 - - - - - 134 - 38 - - - 17 - 363 - 132 - - - 132 -	Total Funds 2022 £’000 878 1 219 1,098 59 216 159 81 (48) 7 415 2,726 644 248 8996 45 41 749 267 121 280 771 6,791 244 232 121 73 122 3 149 38 17 162 1,161 350 48 398	Total Funds 2021 £’000 762 2 251
				1,015
				64
				215 179 79 (80) 5
	415			398
	2,364 644 248 899 45 41 - - 110 280 771			2,900 735 240 51 66 40 670 - 188 - 733
	5,402			6,223
	244 131 121 - 122 3 15 - 17 145			260 349 116 68 125 - 272 - - 137
	798			1,327
	218 48			291 46
	266			337

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

27

Notes to the Financial Statement Year Ended 31 December 2022

12. GRANT ANALYSIS

Grants to Parishes Energy Grants to Parishes- 169 individual grants to Parishes Lowest Income Communities Grants Malvern St Andrew - Youth Minister Toldine Mission Parish Mission Support - Digital Communications Dudley Group Ministry - Administrator Ipsley Parish - Matchborough Community Missioner Healthier Churches Grants Mission Accompaniers Parish Mission Suppot - Digital Communications Kempsey - Children & Families Missioner Malvern Chase - Community Minister & Operations Manager Malvern Link with Cowleigh - Communitry Fridge & Collaborative Café Malvern Link with Cowleigh - Chaplaincy Pershore - Children & Families Worker Grants to Individuals Removal, Resettlement and Other Grants Resettlement Grants First Appointment Grants Removal Grants Ministry Hardship Grants for Individuals Total Grant Expenditure .	2022 £'000 267 - - 3 17 21 41 37 2 86 52 8 25 70 280 2022 £'000 13 22 10 45 38 671	2022 No. of Grants 5 13 4 22 22	2021 £'000 - 2 6 - 2 30 40 - - - - - - - - 2021 2021 £'000 No. of Grants 25 10 19 8 22 10 66 28 - - 106

13. ANALYSIS OF SUPPORT COSTS

Central Administration 807 - - Governance: - External audit 21 - - - Registrar and Chancellor 135 - - - Synodical costs 1 - - 964 - - UnrestrictedRestricted Endowned Funds Funds Funds 2022 2022 2022 £’000 £’000 £’000 ANALYSIS OF SUPPORT COSTS	807 21 135 1 964 Total Funds 2022 £’000	745 28 143 - Total Funds 2021 £’000
		916

Support costs are apportioned as 80% Parish Ministry, 15% Support for Ministry and 5% Education. Support costs are not allocated to the Glebe Agent’s fees and expenses because the Glebe Agent provides his own administrative support.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

28

Notes to the Financial Statement Year Ended 31 December 2022

13. ANALYSIS OF SUPPORT COSTS (continued)

14. STAFF COSTS 2022 £’000 Gross wages and salaries 1,300 Employers National Insurance Costs 126 Other Pension Costs - Annual 227 1,653 The average monthly number of employees during the year was as follows: Full time Part time In terms of full-time equivalent employees, the average number employed and their funding was as follows: Operational posts funded by the DBF Project posts and operational posts funded from other sources _ other sources include Strategic Development Funding from the National Church,_ Activities Undertaken Support Directly Costs £’000 £’000 Cost of generating funds 59 - Contributions to Archbishops’ Council 415 - Parish Ministry 6,020 771 Support for Ministry 1,000 162 Support for Schools 350 48 Charitable activities 7,784 981 Other - Old Palace - - 7,843 981	2021 £’000 1,374 124 246 1,744 23.3 23.3 46.6 29.9 9.4 39.3 No. in 2022 No. in 2022 Total Funds 2022 £’000 59 415 6,791 1,161 398 8,765 - 8,824	24.3 25.4 49.6 31.4 10.0 41.4 No. in 2021 No. in 2021 Total Funds 2021 £’000 64 398 6,223 1,327 337 8,285 463 8,812

* other sources include Strategic Development Funding from the National Church, Bishops’ office funding from the Church Commissioners, grants from trust funds and a contribution from reserves to the Calling Young Disciples project.

There are two employees with emoluments above £60,000 per annum (2021: two employees). Pension contributions are paid for 47 employees (2021: 50 employees).

As part of a project coming to an end during the year there were two redundancies in 2022 (2021 – three, which were part of an office relocation). Accordingly, the total paid during the year in termination and redundancy payments was £10k (2021: £33k).

Worcester Diocesan Board of Finance is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than the bishops and cathedral staff. The WDBF is also responsible for the provision of housing for stipendiary clergy in the diocese, again excluding the diocesan bishop and cathedral staff.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

29

Notes to the Financial Statement

Year Ended 31 December 2022

14. STAFF COSTS (continued)

The WDBF paid an average of 96 (2021-108) stipendiary clergy as office-holders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

diocesan appointments in the diocese, and the costs	were as follows:
Stipends National Insurance contributions & apprenticeship levy Pension costs - current year Pension costs - defcit reduction	2022 £’000 2,636 218 741 191 3,786	2021 £’000 2,815 227 900 195
		4,137

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the diocese. During 2022 they were: Diocesan Secretary and Company Secretary John Preston Director of Finance Helen Archer-Smith Director of Education Tim Reid Director of Ministry and Discipleship Jonathan Kimber Director of Communications Samantha Setchell Deputy Diocesan Secretary - Restructuring Robert Quarton

Remuneration and pensions for these six roles amounted to £328,977 (2021: £312,810).

Trustees’ emoluments

No trustee received any remuneration for services as Trustee. Five (2021 – six) Trustees received travelling and out of pocket expenses, totaling £8,953 (2021 - £8,437) in respect of General Synod duties, duties as archdeacon or rural dean and other duties as Trustees.

The following table gives details of the Trustees who were in receipt of a stipend, housing provided and /or a removal/resettlement grant by the WDBF during the year:

		Stipend	Housing	Removal/	The WDBF is responsible
				Resettlement Grant	for funding, via the
The The The The The	Revd M Badger(resigned 10.01.2022) Revd R M Clark(resigned 10.01.2022) Revd A C Davies Right Revd M Gorick Ven N J Groarke	Yes Yes Yes No Yes	Yes Yes Yes Yes Yes	No No No Yes No	Church Commissioners, the stipends of licensed stipendiary clergy in the diocese, other than bishops and cathedral staff. The WDBF is also
The The The The The	Ven R G Jones Revd Co C A Lording Revd A M Potter(resigned 10.01.2022) Revd B E Rienstra(resigned 10.01.2022) Revd A Todd	Yes Yes Yes Yes Yes	Yes Yes Yes Yes Yes	No No No No No	responsible for the provision of housing for stipendiary clergy in the diocese including the suffragan bishop but
The	Revd R Johnson	Yes	Yes	No	excluding diocesan bishop
The	Revd Co T J Williams	Yes	Yes	No	and cathedral staff.

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

30

Notes to the Financial Statement Year Ended 31 December 2022

15. SURPLUS FOR THE FINANCIAL YEAR	2022	2021
	£’000	£’000
Is stated after charging / (crediting):
Depreciation	28	32
(Surplus) on disposal of fxed assets	(879)	(1,127)
Operating Lease – Rent Old Palace	-	25
Operating Lease – Rent Lowesmoor Wharf	27	13
Auditors Remuneration – external scrutiny	21	28

16. TANGIBLE FIXED ASSETS

COST At 1 January 2022 Additions Disposals At 31 December 2022 DEPRECIATION At 1 January 2022 Charge for year Disposals At 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 Unrestricted Funds .	Board Houses £'000 1,522 ~~-~~ ~~-~~ 1,522 - ~~-~~ ~~-~~ - ~~1,522~~ 1,522	Leasehold Improvements £'000 67 ~~-~~ ~~-~~ 67 14 ~~19~~ ~~-~~ 33 ~~34~~ 53	Fixtures and Fittings Totals £'000 £'000 45 1,634 ~~2~~ ~~2~~ ~~-~~ ~~-~~ 47 1,636 30 44 ~~9~~ ~~28~~ ~~-~~ ~~-~~ 39 72 ~~8~~ ~~1,564~~ 15 1,590
RESTRICTED FUNDS COST At 1 January 2022 Additions Disposals At 31 December 2022 DEPRECIATION At 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 Restricted Funds	Glebe Team Vicarages & Curates' Houses £'000 12,293 1,288 (760) 12,821 - 12,821 12,293	Parsonages Houses £'000 19,579 650 - 20,229 - 20,229 19,579	Pastoral Buildings Totals £'000 £'000 192 32,064 - 1,938 - (760) 192 33,242 - - 192 33,242 192 32,064

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

~~31~~

Notes to the Financial Statement

Year Ended 31 December 2022

16. TANGIBLE FIXED ASSETS (continued)

16. TANGIBLE FIXED ASSETS (continued)
Total Tangible Fixed Assets Unrestricted funds – Net Book Value Restricted funds – Net Book Value	2022 £’000 1,564 33,242 34,806	2021 £’000 1,590 32,064
		33,654

The parsonage houses are legally vested in the Incumbent as a freeholder during their incumbency. The Incumbent is not free to dispose of the house and is not responsible for the maintaining the house. The charitable company has both the benefits and obligations of ownership. The Trustees consider the difference between the carrying value and the market value of the interests in land and buildings not held as investments is not quantifiable.

Included in land and buildings is freehold land valued at £9.9m (2021- £9.9m) which is not depreciated. The freehold property of Board, Parsonage, Glebe and Pastoral buildings and the fixtures and fittings are held in the direct furtherance of the charity’s objects.

17. FIXED ASSET UK INVESTMENTS

17. FIXED ASSET UK INVESTMENTS
Land and Property CBF Shares £’000 £’000 Valuation At 1 January 2022 15,480 29,269 Additions/increase in deposit accounts - 497 Disposals /decrease in deposit accounts (23) - Increase/(Decrease) in revaluation 3 (3,476) At 31 December 2022 15,460 26,290 At 31 December 2021 15,480 29,269	Cash £’000 2,000 1,940 (2,540) - 1,400 2,000	Total £’000 46,749 2,437 (2,563)
		(3,473)
		43,150
		46,749

UK investment property Unlisted UK investment shares CBF Investments	Total 2021 £’000 15,460 26,290 1,400 43,150	Investment property was valued on an open market basis as at 31 December 2022 by Fisher German LLP, who is Glebe Agent. Historical investment costs are not readily available as much of the investment properties was acquired a considerable time ago. Total 2020 £’000 15,480 29,269 2,000 46,749

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

32

Notes to the Financial Statement Year Ended 31 December 2022

18. DEBTORS Current year Ministry / Parish Share and Donations Fee receivable Other debtors Prepayments Accrued Income 19. CASH AT BANK Lloyds Bank PLC Accounts 20. CREDITORS: Amounts falling due within one year Trade creditors Other taxes and social security Other creditors Deferred income Accruals Parsonage houses maintenance Clergy Pension Scheme 21. CREDITORS: Amounts falling due after more than one year Grant Accruals Repayable Grant (see note 22) 22. LOANS Amounts falling due in more than fve years: Repayable otherwise than by instalments: Church Commissioners – Repayable Grant 23. OPERATING LEASES Total commitments under non-cancellable operating leases are as follows: Land and Buildings Payable within one year of the balance sheet date Payable in the second to ffth years inclusive of the balance sheet date	Total 2022 £’000 296 41 535 26 80 978 606 157 33 614 99 102 114 - 1,119 147 - 147 - - 24 20 44	Total 2021 £’000 338 57 170 29 36
		630
		603
		86 65 477 97 29 127 191
		1,072
		- 33
		33
		33
		33
		21 44
		65

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

33

Notes to the Financial Statement

Year Ended 31 December 2022

24. PENSION COMMITMENTS - Church of England Funded Pension Scheme

The Worcester Diocesan Board of Finance, as a Responsible Body, participates in the Church of England Funded Pension Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from the company and the other participating Responsible Bodies.

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to a specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2022: £932k, 2021: £1,095k).

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

• An average discount rate of 2.7% p.a.;

• RPI inflation of 3.6% p.a. (and pension increases consistent with this);

• Increase in pensionable stipends in line with CPIH;

• Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% p.a. and an allowance for 2020 data of 0% (i.e. w2020 = 0%).

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

As at 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the table below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

% of pensionable stipends	Jan 2018 to Dec 2020 Jan 2021 to Dec 2022
Defcit repair contributions	11.9% 7.1%

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

34

Notes to the Financial Statement Year Ended 31 December 2022

Church of England Funded Pension Scheme (continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below.

the table below.
Balance sheet liability at 1 January Defcit contribution paid Interest cost Remaining change to the balance sheet liability* Balance sheet liability at 31 December	2022 £’000 £’000 191 (107) - (84) (191) -	2021 £’000 £’000 402 (195) 1 (17) (211) 191
			191

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

	Dec 2022	Dec 2021	Dec 2020
Discount rate	n/a	0.0% p.a.	0.2% p.a.
Price infation	n/a	n/a	3.1% p.a.
Increase in total pensionable payroll	n/a	(1.5%)	1.6% p.a.

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

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

35

Notes to the Financial Statement

Year Ended 31 December 2022

24. PENSION COMMITMENTS - Church of England Defined Benefits Scheme

Worcester DBF participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and the other participating employers.

CWPF has two sections:

1. the Defined Benefits Scheme

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

3. a deferred annuity section known as Pension Builder Classic, and,

4. a cash balance section known as Pension Builder 2014.

Church of England Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2022: £227k, 2021: £246k).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1% following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

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

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

36

Notes to the Financial Statement Year Ended 31 December 2022

25. SUMMARY OF MOVEMENTS IN FUNDS

Unrestricted Funds General Fund Designated Funds Healthier Churches Fund Ministry Support Fund Net Carbon Zero Fund Conferences Fund World Church Links Fund Lowest Income Communities Fund Calling Young Disciples Designated Funds Total Unrestricted Funds Restricted Income Funds Education Fund Resourcing Churches Calling Young Disciples Capacity Grant Restructuring Diocesan Pastoral Account Fund Benefact Trust Ordination Candidates Fund Clergy Widows and Orphans Fund Lay Staff Support Fund Ministry Restricted Donations Donation in Kind RME Fund Ministry Support Fund Ministry Hardship Grants for Individuals Energy grants to Parishes Maynard and Outram Smith Library Sundry Trust Funds Restricted Funds Endowment Funds Diocesan Stipends Capital Fund Diocesan Unapplied Total Return Diocesan Parsonage Capital Fund Endowment Funds TOTAL FUNDS	Balance at 1 January 2022 £'000 5,678 2,500 700 25 10 28 258 180 3,701 9,379 258 - - - 2,409 - - - 11 - - 137 - - - - - 2,815 26,538 22,319 19,480 68,337 80,531	Income and Endowments £'000 5,261 - 209 - - - 776 - 985 6,246 132 727 101 73 - 122 32 11 - 11 16 122 209 46 283 103 20 2,008 - 1,786 - 1,786 10,040	Expenditure £'000 (5,249) (280) (656) (17) - (3) (545) (131) (1,632) (6,881) (132) (749) (101) (73) - (122) (32) (11) (1) (11) (16) (102) (209) (38) (267) - (20) (1,884) - (59) - (59) (8,824)	Investment Gains / (Losses) £'000 (382) - - - - - - - - (382) (26) - - - (101) - - - (1) - - - - - - - - (128) 2,453 (5,309) (107) (2,963) (3,473)	Transfers Balance at 31 December 2022 £'000 £'000 329 5,637 - 2,220 469 722 27 35 - 10 (25) - - 489 (30) 19 441 3,495 770 9,132 - 232 22 - - - - - - 2,308 - - - - - - - 9 - - - - - 157 - - 16 24 (16) - - 103 - - 22 2,833 - 28,991 (792) 17,945 - 19,373 (792) 66,309 - 78,274

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Notes to the Financial Statement Year Ended 31 December 2022

26. ANALYSIS OF TRANSFERS BETWEEN FUNDS

Total Unrestricted Unrestricted Unrestricted Restricted General fund Designated fund fund funds £’000 £’000 £’000 £’000 From Endowment Fund to General Fund forstipends under Total Return (see note 29) 983 - 983 - From General fund - Annual allocation (109) 109 - - - Reinvestment of operating surplus (360) 360 - - From General fund to Net Carbon Zero Fund (27) 27 - - From General fund to Endowment due to reduction in pension defcit liability (191) - (191) - Resourcing Churches funded by DBF 22 - (22) 22 Transfer of designated fund re World Church Links to unrestricted fund as no longer required 25 (25) - - Calling Young Disciples adjustment so that the Designated Fund is equal to the charities budgeted commitment 30 (30) - - Total 329 441 770 22	Endowed funds £’000 (983) - - - 191 - - - (792)	Total 2022 £’000 - - - - - - - - -

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Notes to the Financial Statement Year Ended 31 December 2022

27. SUMMARY OF NET ASSETS BETWEEN FUNDS

	Tangible Investment	Tangible Investment	Tangible Investment	Tangible Investment	Tangible Investment		Inter Fund
	Fixed Assets £'000 Fixed Assets £'000		Property Investments Current Assets £'000 £'000 £'000 Property Investments Current Assets £'000 £'000 £'000			Creditors £'000 Creditors £'000	Loan Net Assets £'000 £'000 Loan Net Assets £'000 £'000
Unrestricted Funds General Fund Designated Funds Healthier Churches Fund Ministry Support Fund Net Carbon Zero Fund Conferences Fund Lowest Income Communities Fund Calling Young Disciples Designated Funds Total Unrestricted Funds Restricted Funds Education Fund Diocesan Pastoral Account Fund Lay Staff Support Fund Ministry Hardship Grants for Individuals Maynard and Outram Smith Library RME Fund Restricted Funds Endowment Funds Diocesan Stipends Capital Fund Diocesan Parsonage Capital Fund Endowment Funds TOTAL FUNDS		1,564	- - - - - - - - - - - - - - - - 15,460 - ~~15,460~~ 15,460	2,554 - - - - - - - 2,554 222 1,583 9 - - ~~-~~ ~~1,814~~ 22,513 ~~809~~ ~~23,322~~ 27,690	239 - - - 10 489 19 518 757 10 533 - 24 103 ~~157~~ ~~827~~ - ~~-~~ ~~-~~ 1,584	(465) (216) - - - - - (216) (681) - - - - - ~~-~~ ~~-~~ - ~~(585)~~ ~~(585)~~ (1,266)	1,745 5,637 2,436 2,220 722 722 35 35 - 10 - 489 - 19 3,193 3,495 4,938 9,132 - 232 - 2,308 - 9 - 24 - 103 ~~-~~ ~~157~~ ~~2,833~~ (3,858) 46,936 ~~(1,080)~~ ~~19,373~~ ~~(4,938)~~ ~~66,309~~ - 78,274
		- - - - - - - 1,564 - 192 - - - - ~~19~~2 12,821 ~~20,22~~9
		~~33,05~~0
		34,806

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Notes to the Financial Statement Year Ended 31 December 2022

28. PURPOSE OF FUNDS

General fund is the WDBF’s unrestricted undesignated fund available for any of the WDBF’s purposes without restriction.

Healthier Churches Fund is a designated fund from which grants are awarded to support our churches towards greater health and sustainability.

Ministry Support Fund is a designated fund to offer transitional support for benefices with the new ministry share system.

Net Carbon Zero Fund is a designated to support the transition to Net Zero Carbon position.

Conference Designated Fund is an amount set aside to help fund the clergy conference which will take place in September 2023.

World Church Links Designated Fund relates to funds which were earmarked for the mission work with the World Church Links, however the balance on this fund was transferred back to unrestricted funds this year. In future this expenditure will be funded from general unrestricted funds.

Lower Income Communities Designated Fund is income received to support stipendiary ministry in the most deprived areas of the Diocese. Due to the pandemic not all of the planned projects could take place and hence the increase of the funds held at the year end.

Resourcing Churches is income received from Archbishops’ Council for the Dudley and Worcester Resourcing churches.

Calling Young Disciples (CYD) Designated Fund relates to the cost of CYD which will need to be funded by WDBF over the course of the project which is above the restricted income which will be received. It is budgeted that these funds will be spent by 2023.

Capacity Grant Restructuring is income received from Archbishops’ Council to fund additional central diocesan costs to enable strategic transformation within the diocese.

Lay Staff Support Fund is a restricted fund which can only be used for specific expenditure for lay support employees working at the WDBF.

RME Fund is the Resourcing Ministerial Education Fund from which block grants are received by WDBF, out of which training and maintenance costs are met. Any unused funds at the end of each year can only be used to fund future training and maintenance costs.

Ministry Restricted Donations related to the Diocese of Worcester Ministry fund which was launched as a result of the pandemic, due to the effects of reduced Ministry

Share. All income was expended during the year towards a stipend for a vicar.

Ministry Support Fund raises from donations from Benefices who have paid addition amounts above that of their Ministry Share ask to help and support Ministry in other areas of the Diocese. The whole of this fund is spent in the year received on Stipends.

Sundry Trust Funds is an amalgamation of sundry restricted trust funds which have been fully expended in the year.

Restricted Education Fund provides for income to be used for educational purposes.

The Restricted Stipends Capital and Income Funds have arisen from and are governed by the provisions of Section 35 of the Endowment and Glebe Measure of 1976 (as amended), which provides for the income to be used to pay clergy stipends and pension premiums. The capital can only be expended as provided by the Measure.

The Restricted Parsonage Capital Fund has arisen from the Mission and Pastoral Measure 2011 and can only be used for the provision of parsonage houses.

The Restricted Diocesan Pastoral Account Fund has arisen from the Pastoral Measure 2011 and can be used for purposes laid down in Section 94 of the Pastoral Measure 2011. This includes expenditure on any property vested by or under this Measure in the Church Commissioners of the DBF, and grants and loans for parsonage and church provision, restoration, improvement or grant.

Where the DBF is satisfied that any monies in the Diocesan Pastoral Account are not (likely to be) required for meeting the costs referred to in this section it may:

• a. Apply those monies by way of grant or loan to the provision, restoration, improvement or repair of church and parsonage house in the diocese, including the repair of any building closed for regular public worship vested in the Board pending the coming into operation of arrangement under a pastoral (church buildings disposal) scheme, or to other purposes of the diocese or any benefice or parish in the diocese; or

• b. Apply those monies by way of grant tor loan for the benefit of another diocese; or

• c. Transfer monies to the Diocesan Stipends Fund Capital or Income Account (which cannot be reversed).

• Sufficient funds must be held in the Fund to finance all redundant buildings in the Diocese; or

• d. Transfer those monies to one or more other accounts of funds held by the Board.

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Notes to the Financial Statement Year Ended 31 December 2022

The Restricted Ordination Candidates Fund is to finance the costs of Ordinands in the Diocese. The expenditure is funded by income from a registered charity, the Ordination Candidates Trust Fund. No reserves are held in this fund.

The Restricted Clergy Widows and Orphans Fund is to finance the cost of clergy widows and orphans in the Diocese. The expenditure is funded by a grant from a trust fund, the Clergy Widows and Orphans Trust. No reserves are held in this fund.

The Restricted Calling Young Disciples Fund is to finance the cost of Mission Enablers. The expenditure is funded by grants from the Archbishops’ Council.

The Restricted Benefact Trust Fund is to finance the cost towards clergy stipends. The expenditure is funded by grants from Benefact Trust. No reserves are held in this fund.

Energy Grant to Parishes was a grant from National Church to help Parishes with the increasing energy costs of heating their churches; this was distributed by the

Diocese. As allowed by the conditions of the grant, an amount of £16k was transferred to the Ministry Hardship Grants for Individuals.

Ministry Hardship Grants for Individuals was a grant from National Church to help those involved in Ministry with the increasing energy costs.

The Restricted Maynard and Outram Smith Library Fund is from the sale of donated books under the Charities Act Scheme known as Maynard Smith and Outram Smith Library. The proceeds can be used for the advancement of theology and theological learning for the benefit of the public, including providing grants for the training and maintenance of ordination candidates, and continuing education for those who are already ordained. Accordingly, the fund will be spent on clergy training.

The Donation in Kind was a grant in kind of 30 contactless donations devices from the National Church, which in turn were distributed to Parishes to enable them to receive donations in an increasingly cashless society.

29. ENDOWMENT FUND - TOTAL RETURN

29.ENDOWMENT FUND - TOTAL RETURN	29.ENDOWMENT FUND - TOTAL RETURN	29.ENDOWMENT FUND - TOTAL RETURN
At 1 January 2022 Gift component of the permanent endowment Accumulated infation since original gift Unapplied total return Movements in the year: Dividends, interest and rental income Realised gains on sale of property Unrealised gains on investments Transfer from general fund for reduction in clergy pension defcit payments liability Actuarial gain on clergy defned beneft pension scheme Indexation on base value of investment Unapplied Total Return allocated transferred to income to fund stipends: - Equating to budgeted dividends and interest - Equating to establishment of Healthier Churches Fund -Equating to contribution to Transitional Support for Parishes Fund - Equating to contribution to Net Zero Carbon Fund Net movements in year: At 31 December 2022 Trust for Unapplied 2022 Total 2021 Total Investment Total return Endownment Endownment £’000 £’000 £’000 £’000 15,598 - 15,598 15,598 10,940 - 10,940 9,505 - 22,319 22,319 21,288 26,538 22,319 48,857 46,391 - 963 963 902 - 712 712 487 - (2,745) (2,745) 4,265 - 191 191 195 17 2,453 (2,453) - - 2,453 (3,391) (938) 5,866 - (847) (847) (775) - - - (2,500) - (109) (109) (100) - (27) (27) (25) - (983) (983) (3,400) 2,453 (4,374) (1,921) 2,466 28,991 17,945 46,936 48,857
	48,857 963 712 (2,745) 191 -	46,391 902 487 4,265 195 17 -
	(938) (847) - (109) (27)	5,866 (775) (2,500) (100) (25)
	(983)	(3,400)
	(1,921)	2,466
	46,936	48,857

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Notes to the Financial Statement Annual Report Year Ended 31 December 2022

29. ENDOWMENT FUND - TOTAL RETURN (continued)

The trustees adopted a Total Return accounting approach under the Diocesan Stipends Funds (Amendment) Measure 2016 with effectfrom 1 January 2021.

The trustees decided that £7,169k of Unapplied Total Return (UTR) is to be kept as a minimum UTR reserve so that the underlaying value of the Unapplied Total Return investment fund is protected.

The indexation base value on investment has been calculated by taking the annual CIPH percentage increase for the year.

The release of funds which can be transferred to the income fund in order to fund stipends is limited to no more than the annual amount spent on stipends for clergy each year. Accordingly, the maximum which could be realised in 2022 was £3,369k (2021 - £3,635k).

30. FINANCIAL INSTRUMENTS

Financial assets measured at fair value Financial assets measured at amortised cost

Financial liabilities measured at amortised cost

Financial liabilities measured at fair value

2022 £’000 26,290 2,983 (1,266) -	2021 £’000 29,269
	3,233
	(1,105)
	-

Financial assets measured at fair value comprise unlisted investments.

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

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

Financial liabilities measured at fair value comprise value linked loans.

31. FUNDS HELD AS CUSTODIAN TRUSTEE

The Worcester Diocesan Board of Finance acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are Parochial Church Councils and others. Assets held in this way are not aggregated in these financial statements as the Board does not control them. The financial assets held in this way 2022 2021 may be summarised as follows:

way are not aggregated in these fnancial statements
Church of England Investment Fund income shares CBF Church of England Fixed Interest Securities Fund shares CBF Church of England Investment Fund accumulation shares CBF Church of England Property Fund shares CBF Church of England Deposit Fund Total assets held as Custodian Trustee not control them. The fnancial assets held in this way ed as follows:	2022 £’000 15,406 223 164 231 1,737 17,761	2021 £’000 17,110 356 69 262 2,393
		20,190

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Notes to the Financial Statement Year Ended 31 December 2022

32. CONNECTED PARTY TRANSACTIONS

The Board is associated with various charities and trusts due to the majority of their trustees being trustees of the Board. The trustees consider that this relationship does not inhibit either charity from pursuing its own separate interests. The amounts due to / (from) the DBF at 31 December 2022 are as shown below. During the year ended 31 December 2022 the Board has received grants from the charities and trusts as follows:

	Grants	Grants	Amounts due	Amounts due
	Receivable	Receivable	to/(from)	to/(from)
	2022	2021	the DBF at	the DBF at
			31 Dec 2022	31 Dec 2021
Worcester Diocesan Social Responsibility Fund	22,000	24,500	-	22,000
Worcester Diocesan Ordination Candidates Fund	32,300	30,000	5,300	2,000
Worcester Diocesan Church Schools Improvement
and Maintenance Fund	134,500	106,500	-	(10,977)
Worcester Diocesan Clergy Holiday Fund	4,136	3,665	-	-
Lye Church Estate Trust	8,750	8,463	-	-
Cholmondeley Bequest Fund	1,229	1,189	-	-
Trust Administration Fund	1,184	770	-	-
Special Purposes Fund	8,001	7,751	-	-
Redditch Holy Trinity Charity	25,000	25,000	25,000	-
Diocesan Records Offce Income Fund	19,074	8,640	8,687	-
Clergy Widows & Orphans Income	10,577	8,065	-	-
Clent Hall Parish Hall	6,000	6,000	-	-
Abberton Spire Trust Fund	13,675	12,253	570	570

In addition to the above grants, an administration contribution is paid from the Church Schools Improvement and Maintenance Fund. This figure in 2022 was £13,013 (2021 - £11,117)

The Board acts as Trustee for a number of funds and has delegated its role, by virtue of a resolution dated 26 June 1934, to its Trust Committee (Diocesan Trustees). These funds objects all fall within the wider objects of the DBF. These funds are:

• Mary Bottjer Trust

• Lye Church Estate Trust

• Queen Victoria Clergy Fund

• In Service Training Fund

• Pendock Church of England Voluntary School Fund

• Ronkswood Holy Trinity & St Matthew Trust Fund

• St Edmund King & Martyr Dudley Fund

The Dean and Chapter of the Cathedral, Worcester is considered a connected party as there are common Trustees between the two entities, being The Bishop of Worcester and The Dean of Worcester. Full details of the transaction between these entities are disclosed in note 33 below. £440,000 was owed to The Dean and Chapter of the Cathedral, Worcester at the 2021 year end date as included within creditors in these financial statements; this was fully paid and settled within 2022.

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Notes to the Financial Statement Year Ended 31 December 2022

33. OLD PALACE DILAPIDATIONS SETTLEMENT

As part of the charity’s cost reduction plan, the operating premises of Worcester Diocesan Board of Finance moved from the Old Palace, Deansway, Worcester to 16 Lowesmoor Wharf, Worcester during 2021. The lease of the Old Palace required the charity to keep the premises in no worse state of repair than when the lease was entered into. Considering the significant investment in the Old Palace over the years, the Board is of the opinion that the Old Palace is in a better state of repair when the lease ceased on 28th September 2021. However, the Board has paid the Dean and Chapter of the Cathedral, Worcester, as the landlords of the Old Palace, a total settlement of £463k to settle all liabilities including dilapidations, final lease costs and legal costs.

34. PRIOR YEAR COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Notes to the Financial Statement Year Ended 31 December 2022

35. PRIOR YEAR COMPARATIVE ANALYSIS OF MOVEMENT IN FUNDS

Worcester Diocesan Board of Finance Limited. Registered Charity Limited by Guarantee

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Notes to the Financial Statement Year Ended 31 December 2022

36. PRIOR YEAR COMPARATIVE OF NET ASSETS BETWEEN FUNDS

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Company Registration Number 00271752 Registered Charity Number 247778

Published June 2023