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2023-12-31-accounts

Report of the Directors and Financial Statements for the year ended 31 December 2023 for Worcester Diocesan Board of Finance Limited Registered Charity Limited by Guarantee Company Registration Number 00271752 Registered Charity Number 247778

2023 REPORT

Contents Annual Accounts

Company Registration Number 00271752 Registered Charity Number 247778

Published July 2024

Contents of the financial statements for the year ended 31 December 2023

2023

In 2023 we set out our priorities for the next few years committing to:

10 new Deacons ordained through our Auxiliary Pathway.

£7.7m of funding received in principle from the national church.

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 2023

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

W S Downing (Chair) (appointed 6.11.23) The Reverend A G Todd (Chair) (resigned 31.8.23) E A Wiles (Vice Chair) The Right Reverend J G Inge The Right Reverend M C Gorick The Very Reverend P G Atkinson (resigned 25.8.23)

The Venerable N J Groarke

The Venerable R G Jones (resigned 18.4.24) The Venerable M Badger (appointed 1.1.24) The Reverend A C Davies The Reverend Canon S M Edwards (appointed 1.9.23) M D Hunter (appointed 20.3.23) The Reverend R Johnson

P V Kear

The Reverend Canon C A Lording R J Pearce D I A R Phillips H A Richards T H Terera (appointed 13.1.23) D M Wightman The Reverend Canon T J Williams

Company Secretary

The Reverend A G Todd (appointed 5.9.23) J P H Preston (resigned 5.9.23)

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, 1 Angel Lane, London EC4R 3AB

Insurance Agents

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

Property Investment Adviser

Fisher German LLP Chartered Surveyors, Global House, Hindlip Lane, Worcester WR3 8SB

£1.1m given to parishes to support the mission and ministry of parishes as they work towards financial stability.

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Directors Report

2023

Report of the directors for the year ended 31 December 2023

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 2023. 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:

Chair’s Report

I recognise change can be a scary concept for all of us at times. As we look to the future as a Diocese, we have embarked on a 2023-2030 journey with a complex growth-orientated transformation programme. At the same time, we have an uncertain economic and political world for a backdrop. But I, like many others, am very excited about what we are looking to do. I whole heartedly believe in our vision “to grow as Kingdom People, sharing the good news of Jesus’ love in Worcestershire and Dudley through churches that are growing in health and sustainability”, and I know that as a church, and financially as a charity, it is the right thing to do. If God is for us, who can be against us?

In 2023 the Diocese had external funding approved in principle of £7.7m from the Church of England’s Strategic Mission and Ministry Investment Board to support our renewals. We are very grateful for their backing and support.

2023 was a challenging year for the UK economy, with knock-on implications for our parishioners, and for parish contributions (down 4% 2023 £3.9m; 2022 £4.0m). Against this backdrop the Diocese produced a resilient set of financial results. At the Net Operational Position[1] level, the measure which we use to measure day to day performance, we achieved a breakeven result for the year (2023 £0.0m; 2022 £0.4m).

I recognise the renewals funding is focused on just a few areas, but we want to strengthen all our churches and encourage and resource them to explore what it might mean to grow in health and sustainability, in their context, as they worship God, make disciples, share hope, and transform their local communities. I would encourage all benefices and parishes to be thinking actively about what steps they might be able to take towards a future that is healthy and sustainable, life-giving and sustaining, and where appropriate to investigate making applications for the support available, whether it is applying for Mission Accompanier resource, applying for grants available from the Heathier Churches Fund or the Kingdom People Fund, or accessing the training available for new worshipping communities, and for equipping our ministers for mission.

Disciplined risk management continued to underpin our balance sheet, and we grew our investments, a mixture of glebe property and investment portfolios up 9% in the year (2023 £49.6m; 2022 £43.2m). These form part of our endowment funds which support our parishes now, and which we need to support our parishes for decades, and hopefully centuries, to come. At all times we maintained enough free reserves to remain within our solvency parameters (2023 £4.2m).

The Diocesan transformation programme launched in February 2023 to accelerate the progress towards long term healthy and sustainable churches across the Diocese. It has three key strategic priorities, together with one underpinning priority:

The financial sustainability of parishes is a very real and current issue for all Dioceses across the country. Growing parish receipts and controlling costs as well as growing reserves for unexpected events is a significant challenge for many. In 2023 we provided over £1.1m (2022 £1.2m) to support benefices and parishes working towards this financial sustainability. Understandably we cannot provide this level of finance in perpetuity, and many parishes have plans in place, or are working on plans, to become self-sufficient. The central team continue to be on hand to support those needing assistance with developing their plans.

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Directors Report

The Diocese has for many years faced structural financial challenges: we have an ageing population; a number of areas of lower incomes; and a high proportion of small congregations. The hard work of many people over the years together with the 2023 transformation growth plan will seek to address these challenges. We can therefore rest assured that by executing our plans and with God’s blessing the Diocese will be financially sustainable for many years to come.

Finally, but most importantly, I must add my thanks to the staff and clergy who make this happen. We are blessed with an excellent team across the Diocese and the central team under the leadership of Reverend Andy Todd have done a fantastic job supporting, and challenging, the parishes to deliver this successful 2023. I look forward to working alongside you, and on your behalf, in the year ahead.

W S Downing

1 The Net Operational Position is defined as the net movement in funds from the SoFA of £6.8m, less a) the net impact of funding of special projects which net off to £0.0m in the SoFA, b) the net movement on our endowment funds investment portfolios of £5.3m, and c) the realised gains on our parsonage portfolio of £1.5m.

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:

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 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 Mission and Ministry and the Transformation Programme Director. 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 of which are included with the connected party transactions within note number 31 to these financial statements.

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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:

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 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.

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Achievements and Performance Achievements

Directors Report

Overview

During 2023 we made significant progress on our approach to Diocesan Transformation, against an ongoing challenging background of cost of living pressures which continue to affect both parishes and the WDBF.

2023 Priorities

In last year’s report we set out our priorities for 2023:

• PRIORITY 1:

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

In February 2023, following extensive consultation across the diocese throughout 2022, a comprehensive transformation programme was presented to and approved by the Bishop’s Council. This programme delineates three strategic priorities, to guide the activities of the WDBF in supporting parishes to achieve transformative outcomes by 2030:

  1. Doubling the engagement of Children and Young People

  2. Launch of 100 New Worshipping Communities

  3. Through renewal, to have a thriving church, with an Average Weekly Attendance (AWA) of 150, in every major centre of population within the diocese.

Each project proposal within the transformation programme includes a workable funding plan, ensuring the feasibility and sustainability of our initiatives for the duration of the programme.

Furthermore, March 2023 brought promising developments as the National Church pledged inprinciple support for the Church Renewal aspect of our transformation programme, through Diocesan Improvement Programme (DIP) funding. This commitment was accompanied by substantial grants for capacity building. Additionally, the Bishop’s Council allocated significant funds from the Diocese’s own Healthier Churches Fund, providing vital financial support for our core transformation initiatives over the next five years. These developments instill confidence and momentum in our collective journey towards a healthy and sustainable diocese.

A transformation communication plan was developed in 2023, devised to disseminate information across the diocese about the strategic priorities and key messages of support for all parishes aspiring to grow. Emphasising the importance of local churches becoming healthy and sustainable, the communications plan underscores the significance of setting contextspecific priorities to unlock growth and reverse the decline in our churches.

Moreover, a period of prayer was launched to underpin the transformation strategy and to further engage our parishes in the transformation programme. This initiative seeks to foster a spirit of unity and recognise God’s centrality to our shared journey of transformation.

• PRIORITY 2:

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

The Mission Accompanier Programme continued through 2023 and has grown to support 64 Churches in 35 contexts (parishes/groups/teams) supported by 24 Mission Accompaniers. The offer of an Accompanier is open to all churches, and has been shared through the diocesan website, various social media posts including video interviews, and by word of mouth. Incumbents have also been encouraged to apply through the Ministerial Development Review programme.

Health and Sustainability Plans have been created in 23 settings so far, with two more in preparation. A further 10 churches have recently begun working with a Mission Accompanier.

Annual reviews were held with church incumbents in November/December 2023. The results indicate that Mission Accompaniers are offering the right mix of encouraging, supportive and challenging input, bringing appropriate levels of honesty, whilst facilitating positive insightful change.

• PRIORITY 3:

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.

Children, Families and Youth worker posts form a key intervention in our Children and Young People strategy. Through this intervention, we aim to ensure our parishes are places of hospitality to children and young people, and their families. We anticipate that each church hosting a worker would see AWA of children and young people rise to at least 40 by 2030. Across the diocese, we now have 13 children and

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Directors Report

Achievements and Performance

youth workers, five of whom are funded through the Healthier Churches Fund (HCF). HCF funding for a further two roles was approved by Bishop’s Council by the year end.

• PRIORITY 4:

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.

In March 2023, our renewals programme received provisional approval for national funding amounting to £6.8m, contingent upon the development of coherent missional designs for each of the seven projects in the initial phase of the programme. The experiences gained from our two resourcing churches, All Saints Worcester and Top Church Dudley, have been instrumental in shaping the direction of our renewals programme. Learning from their successes and challenges has provided invaluable insights into effective strategies for church renewal. Throughout the year, curates from the leadership pathways at our resourcing churches have actively contributed to the development of missional design in two of our renewals, and a curate from All Saints has been confirmed as the renewal leader at St Stephen’s Redditch.

Throughout the year, significant progress has been made in formulating mission plans for each renewal project. Notably, two projects have attained approval for their mission plans, along with the necessary funding, from the Strategic Mission and Ministry Investment Board. The parishes of St. Mary’s Kingswinford and the Halas team (St. John’s Church Halesowen) have commenced recruitment efforts for key roles and are actively working towards realising the programme’s missional impact. These developments signify tangible strides towards revitalising these churches and fostering renewed engagement with their respective communities.

Progress on supporting the creation of New Worshipping Communities (NWCs) was hindered by delays in recruiting an NWC Enabler, who will serve as the strategic lead for this priority. We were able to recruit to this role in January 2024 and eagerly await the arrival of the post holder.

We also successfully recruited an NWC Administrator, who has begun laying the groundwork for NWC initiatives. Notably, work has commenced on assembling a first cohort for the Myriad NWC learning community, facilitating knowledge-sharing

and collaboration. The NWC Administrator has also begun to establish a baseline assessment of existing NWCs within the diocese, providing valuable insights for future planning and strategic decision-making. Whilst challenges and delays have presented obstacles, our commitment to the renewal and growth of churches within the diocese remains steadfast. With dedicated efforts and strategic investments, we are confident in our ability to realise the vision of vibrant and thriving worshipping communities across the diocese.

• PRIORITY 5:

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

A project proposal for Equipping Ministers for Mission accompanied the transformation programme documents as an underlying priority to support the delivery of our desired outcomes. This intervention is designed to empower clergy and key lay leaders alike, further equipping them with the necessary skills and resources to fulfil effectively the work of transformation in the diocese.

Progress on the detailed implementation plan for Equipping Ministers for Mission was hindered by the vacancy in the Director of Mission and Ministry role until July 23. The recruitment process for this key position caused a delay in finalising the plan and initiating key activities. Since the appointment, efforts have been intensified to expedite the development and delivery of this underlying priority.

The plan is part funded through a capacity grant from the National Church, and aims to provide the necessary resources to implement robust training, coaching, and support initiatives for ministers across the diocese.

• PRIORITY 6:

To recruit well to fill a number of senior vacancies.

In 2023, significant strides were made in addressing senior vacancies within the diocese. Key appointments were successfully made to critical positions, including:

Following the retirement in August of the Very Revd Peter Atkinson (Dean of Worcester), Revd Stephen Edwards has been acting as Interim Dean.

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Directors Report

Furthermore, progress was made on the recruitment of strategic leads for each of the transformation priorities outlined in our agenda, notably the appointment of the newly-created role of Programme Lead for Children and Young People. This role will lead on initiatives aimed at engaging and empowering children and young people across the diocese, contributing to the realisation of our strategic objectives.

These appointments mark a significant milestone in strengthening our leadership team and positioning the diocese for continued growth and impact in fulfilling our mission.

Ministry Share System

The Diocese transitioned from its previous Parish Share system to its new Ministry Share system from January 2022. One of the key objectives of the new approach has been to provide greater transparency regarding 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 transitional Ministry Support Fund and making allocation decisions generally worked well. 45% of our benefices (32 out of 71) needed some form of support from the Ministry Support Fund during the year. The intention is that this reduces over time, although the currently high level of energy costs in particular will make this challenging. 14 of the 32 were Lowest Income Communities, where we expect that ongoing support will be required to enable ministry in our least affluent communities.

16 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 totalled £101k, a lower figure than originally hoped for, due not least to the ongoing high energy costs. Total contributions to Ministry Share totalled £3,837k, which represented 96.7% of Ministry Share requests, once Ministry Support Fund grants were taken into account.

Ministry Development

2023 was a year of significant change for the Ministry and Discipleship Team, not least in a change of name to the Mission and Ministry Team (MMT). This reflects the shift to focus the team squarely upon the “underpinning priority” of the Transformation Strategy, “Equipping Ministers for Mission”. A number of key staff changes have been made with this objective in view, including the appointment of a nationally-funded part-time Clergy Development Officer, and we have begun to review and revise our various areas of work to align these with the wider Transformation Strategy.

The work of vocational discernment and training continues. In 2022-23 18 worship leaders, 5 pastoral workers and 4 children and youth workers were trained through the diocesan Authorised Local Ministry Scheme, and since the autumn 20 worship leaders are being trained locally using the same materials. The intake for Licensed Lay Minister/Reader training has increased, with six new candidates entering training at Queens in autumn 2023. In 2023 the Diocesan Board of Finance put on 83 training events, with a total of 829 attendees, facilitated by the MMT. Of these, 43 were MMT events, with 531 people attending: this includes a diverse range of learning and training opportunities, including both inperson and online delivery.

10 candidates for ordained ministry are currently in training at national Theological Education Institutions. In addition, thirteen candidates on the pilot Auxiliary Pathway have been successfully recommended for training, with 10 of these ordained last autumn and the others due to be ordained during 2024. Following review, a second wave of recruitment for the Auxiliary Pathway is currently underway. There are currently 20 curates in the diocese participating in the postordination training (“IME2”) programme: this is under review following the appointment of a new part-time IME2 Officer. We continue to participate in and contribute to the regional Continuing Ministerial Development network, which provides training for clergy at crucial points of transition in ministry. We are currently finalising plans to offer training in skills for Oversight Ministry with a pilot cohort of diocesan clergy in partnership with CPAS.

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Achievements and Performance continued

Directors Report

Support for Church Buildings

There were significant changes of staffing in the diocesan Church Buildings team in 2023, together with the appointment of a new Chair of the Diocesan Advisory Committee (DAC). A considerable amount of induction work has therefore taken place.

Advice visits to 105 churches were made by team members (95 in 2022) along with supporting several longer-term major building projects. Full DAC visits to assess major proposals numbered the same as 2022 (12). In 2023, 40 applications for Faculty were considered by the DAC (2022 – 54, 2021 – 45) and 128 List B applications were granted (2022 – 148, 2021 – 105). Seeking volunteer DAC members with relevant specialisms remains difficult.

The church of St Peter, Upper Gornal formally closed, with considerable input to take on the building, and to catalogue and redistribute the contents. Work continues on the portfolio of other closed and closing churches.

The team were successful with bids to the Archbishops’ Council’s Buildings for Mission fund for a part-time support officer (to be appointed in 2024 on a fixed-term contract), and also for £135,000 to redistribute to parishes to support minor repairs and improvements to churches, both through to the end of 2025.

Education

In 2023, The Diocesan Board of Education published its strategy for the Academisation of our one hundred Church of England schools. This, alongside revised policy and procedures, has been shared and agreed with the Department for Education. All documentation has been shared with schools and Multi-Academy Trusts (which have Church School Articles of Association for Academisation) with meetings being held with individual Governing Bodies which are currently considering their options for conversion.

The Education Team became the first Diocese in the country to offer the National Professional Qualifications for teachers (NPQs) in 2023. The team has now become the regional delivery partner, offering five different qualifications (NPQ – Headship, NPQ – Senior Leadership, NPQ – Leading Teacher Development, NPQ – Learning Behaviour and Culture, and NPQ - Leading Teaching) and currently has one hundred and thirty participants enrolled. As well as providing much-needed qualifications for senior leaders, teachers and support staff in schools, it continues to 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.

Through the DBE Service Level Agreements, there is a continued offer of Mental Health and Wellbeing support. This support has been invaluable in supporting school senior leaders who require counselling and support. Requests for support continue to grow and feedback and results from service users have been very positive.

During the year the Education Team has supported the facilitation of nine building, maintenance and refurbishment projects in Voluntary Aided schools valued at just over £400,000. This work, in the main, is funded by the Department of Education through their School Condition Allocation scheme.

As part of the Framework for the Decarbonisation of Church of England schools, the Education Team is working alongside Mantis Energy who have been appointed as Regional Consultants. This work ensures that the Diocesan Board of Education has free access to advice, guidance, and experience to help shape, focus and deliver ongoing plans towards Net Zero Carbon in the Voluntary Aided schools and schools within Diocesan Multi-Academy Trusts, where the diocese holds the responsibility for the maintenance of development of school buildings.

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Directors Report

Net Zero Carbon

In November 2023, Synod approved the Diocese’s 2023/2024 Practical Path Towards Net Zero Carbon, an emerging plan which outlines specific short-term actions and strategies to reduce our carbon footprint and work towards achieving net-zero carbon emissions within the diocese by the year 2030. By receiving this plan, the Diocesan Synod affirmed its commitment to addressing the climate crisis, in alignment with our Kingdom People values.

This first phase of our approach is based upon:

This step-by-step plan lays the groundwork for carbon reduction, and for the decision-making and investment that will be needed. Additionally, we seek to raise awareness of the imperative for energy reduction and the impact of carbon emissions through our communication work, and will be offering carbon literacy training to raise awareness of the need for carbon reduction and how we can all contribute through our individual choices.

A key reason for seeking this funding is to resource capacity for and expertise to take our work to the next, more detailed level, which will include more precise costings of the changes required across the Diocese. We recognise that there are currently gaps in our data, in our understanding of appropriate solutions, and in the availability and costs of technologies. At the same time, it is also recognised that there is a short window to make the necessary changes, and that it will be far cheaper to react now than to bear the financial, human and creation costs of climate crisis in the future if we do not act promptly and decisively.

Consequently, budgeting and finance will undoubtedly need to figure more strongly in any planning and progress. In this context, the recent announcement by the Church Commissioners to release £190 million over the next 9 years, as a one-off investment in the transition towards a lower carbon approach, is encouraging, and may provide us with future funding opportunities. The funding is back-end loaded, with £30m available to the end of 2025, £90m between 2026 and 2028, and the remaining £60 million being released from 2029 to 2031.

That said, the capacity and resource implications of achieving this commitment remain significant, and as a diocese we are committed to exploring a range of options and models to ensure delivery does indeed become a reality.

Diocesan Synod has made available £25,000 per annum to support our work in progressing these goals. In addition, a successful funding application was made to the first phase of Triennium funding from the Church of England’s National Environment Programme as part of a regional bid for a total of £290k of funds, for the appointment of fixed-term (to August 2026) roles across the region to bring expertise, build capacity, set in place decarbonization plans, and engage with initial projects.

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Achievements and Performance continued

Directors Report

2024 Priorities

Building on the 2023 priorities to align with our diocesan strategic objectives, we have identified the following key priorities for 2024:

  1. Engagement of Children and Young People: Increasing the number of children and youth workers equipped with effective plans, to ensure greater engagement and discipleship with children and young people.

  2. Support and Development of New Worshipping Communities (NWCs): Prioritising the support and training for new worshipping communities (NWCs) while fostering a culture of innovation. This involves equipping NWC leaders with the necessary resources and guidance to establish vibrant and inclusive worshipping communities that connect with new people in new ways.

  3. Renewals Programme Implementation: Finalising mission plans to unlock national funding and advancing the implementation of Phase 1 renewal projects. Additionally, scoping Phase 2 renewal projects to ensure a sustained momentum in our renewal programme.

  4. Equipping Ministers for Mission: Empowering clergy and key lay leaders alike, and further equipping them with the necessary skills and resources to fulfil effectively the work of transformation in the diocese. This includes continuation of the Mission Accompanier programme.

Within these Priorities, we have identified a number of focus areas which will support delivery of our goals, in particular: focusing on Strategic Worker Planning, including the development of recruitment and leadership pipelines; aligning personnel with specific roles and responsibilities to optimise the effectiveness and impact of our initiatives; establishment of Learning Processes and Impact Measurement, implementing robust mechanisms for evaluating the impact of our strategies and initiatives, allowing us to make informed decisions and adjustments as needed; and Communication of Strategic Priorities, sustaining ongoing communication of our strategic priorities to stakeholders across the diocese. This entails reinforcing key messages and objectives to ensure clarity, alignment, and engagement among all stakeholders, fostering a shared sense of purpose and commitment to our collective mission.

By prioritising these areas, we will make continued progress towards our transformation goals and realise our vision of a vibrant and thriving diocese – growing as Kingdom People.

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Directors Report

Financial Review

Financial Review

Total incoming resources for the year was £14,163k (2022 - £10,040k). The principal funding source was from Ministry Share which represents 27.9% (2022 – 42.1%) of total incoming resources. The reduction in this percentage is as a result of three things: the significantly increased value of gains on sale of tangible fixed asset properties (£4,083k in 2023, £856k in 2022); the increase in grants received from the Archbishops’ Council (£3,373k in 2023, £2,191k in 2022); and the reduction in Ministry Share contribution in absolute terms. If gains and grants are omitted share represents 58.9% of operational income (2022 – 60.4%).

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 £1,385k (2022 - £1,160k), being split between grants from the Ministry Support Fund of £430k (2022 - £656k), £683k (2022 - £504k) from the Lowest Income Communities Grants (LInC), and £272k (2022 - £232k) of other grants towards ministry. These grants mean that the Net Ministry Share Requested (after grants) should have been received in full from the Benefices. However, due to the continuing high inflationary economic environment, including the costs of energy, only 96.7% (2022 - 95.5%) was received. Total Ministry Share received during the year, including donations to the Ministry Support Fund and arrears, was £3,953k (2022 - £4,227k). Endowments increased by £6,408k (2022 - decreased by £2,028k). This as a result of an increase in investment valuations at the year-end of £2,246k (2022 - £3,473k) decrease in investment valuations), as well as gains on disposal of endowed assets of £4,083k (2022 - £856k). From the endowment £811k (2022 - £963k) was transferred to general funds under Total Return Accounting, see below and note 28. Total resources expended were £9,960k (2022 - £8,824k).

The Statement of Financial Activities on page 20 shows an overall increase in funds of £6,796k (2022 - £2,257k decrease in funds), of which £2,593k related to unrealised investment gain (2022 - £2,257k unrealised investment losses), and £4,083k (2022 - £856k) from surpluses on property sales.

The underlying operational result for the year, after transfers form Total Return and the Ministry Support Fund, was breakeven (2022 - £360k surplus, which was reinvested into the Ministry Support Fund) plus an investment by WDBF of £41k (2022 - £153k) into our strategic projects.

Management has continued to monitor its costs and seek to gain additional funding where possible, to support the operations of the organisation, and its operational result, and to allow the Diocese to maximise its support to Benefices, Parishes, Churches and individuals.

Investment Policy

The Board’s investment policy was reviewed during the year by an Investment Panel, a working group of the Finance and Resources Committee (FRC), although the ultimate responsibility remains that of the Worcester Diocesan Board of Finance. The policy was ratified in September 2023 and the overarching objective is to maximise long-term income without exposing capital to undue risk, within a diversified portfolio spread across a broad range of asset classes and without compromising the Board’s ethical investment policy, which essentially follows the national guidance established by the Church of England’s Ethical Investment Advisory Group.

We remain in regular contact with CCLA Investment Management, our investment advisers, and Fisher German LLP, our property investment advisers, whom fed into the establishment of the new investment policy.

Reserves Restricted and endowment funds

As set out in note 24 the WDBF holds and administers several restricted and endowment funds. As at 31 December 2023 restricted funds totaled £4,109k (2022 - £2,833k) and endowment funds totaled £72,717k (2022 - £66,309k). This includes the Diocesan Unapplied Total Return Fund (UTR) which totaled £21,403k (2022 -£17,945k) – 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 Trustees adopted Total Return accounting for the Diocesan Stipends Capital Fund (DSCF) with effect from 1 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 2023 of £30,195k (2022 - £28,991k). The Unapplied Total Return fund as at 31st December 2023 amounted to £21,403k (2022 - £17,945k).

The Board can then release funds which are transferred to the income fund to fund stipends. This enables other funds which would have

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

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Directors Report

normally been used for the funding of stipends to be used as the Board sees fit. The transfer in relation to funding stipends was £670k (2022 - £847k). The Board has discretion to allocate up to a maximum of the original base value of £775k uplifted for inflation each year, for six years (to 31 December 2026) to fund stipends each year.

The Board has also made transfers into designated funds as follows, in line with its agreed policy:

• Transitional Support for Parishes - £114k in 2023 (2022 - £109k), which is based on an original base value of £100k, uplifted for inflation each year, for six years (to 31 December 2026). This is to 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.

• Net Carbon Zero Fund – £27k in 2023 (2022 - £27k), which is based on an original base value of £25k, uplifted for inflation each year, for six years (to 31 December 2026). This is to provide some expert resources 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, which they did, and continue to. 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 27. At 31 December 2023 total designated reserves were £2,458k (2022 - £3,495k). See note 24 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 2023 the general unrestricted fund’s net assets, excluding tangible fixed assets was £4,240k (2022 - £4,073k), and during 2023 total operational costs were £7,416k (2022 - £7,047k) providing for 7 months of operational expenditure (2022 - 7 months).

The 2024 budget budget suggests that expenditure will grow to £8,015k (an 8% increase), based on this figure 6.3 months of operational expenditure is provided for.

The Board are aware that the current level of reserves is in excess of the stated reserves target by 1.8 months, however, the financial challenges that Benefices and Parishes face are growing, with the Diocese continuing to provide significant financial support to many areas. Whilst it is expected that Benefices and Parishes will transition to financial sustainability and sustainable level of Ministry, it is considered appropriate to carry the level of free reserves that are currently held so that the Diocese can respond to areas where sustainability is challenging, whilst at the same time invest in growth.

Fundraising

Funds were raised in 2023 for our partner dioceses of Peru and Morogoro: £10.9k (2022 - £7.1k) was raised for the Diocese of Peru; £8.7k (2022 - £0.5) for the Diocese of Morogoro; £1.0k (2022 - £1.0k) for Berega Hospital, Tanzania; £0.7k (2022 - £0.1k) for Morogoro Sewing Academy; and £0.1k (2022 - £Nil) for Morogoro Bible College.

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 £3.7k was received in 2023 (2022 - £10.3k).

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

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Directors Report

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 five operational areas.

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

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 five 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.

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

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Directors Report

Investment Performance

Overall performance

Investments are held in both glebe and general funds. The total value of investments at 31 December 2023 was £49,630k (2022 - £43,150k) and the total return on investment saw share values increase by 9% (2022 – 12% decrease). Investments in glebe funds are primarily to generate a sustainable income to continue funding clergy stipends.

Agricultural land and properties (Glebe only)

Agricultural, commercial and residential land and buildings were valued at £15,625k (2022 - £15,460k). Rents receivable amounted to £255k (2022 - £219k) – an income yield of 1.6% (2022 - 1.4%). The unrealised market value gain was £571k (2022 - £3k) and the realised gain on disposal was £2,084k (2022 - £856k).

These assets are managed by Fisher German, the property investment advisers for the Board.

Investment securities (Glebe and General)

Investments in equity and other securities were valued at £34,005k (2022 - £27,690k). Income from these securities amounted to £1,011k (2022 - £879k) – an income yield of 3.0% (2022 - 3.2%). The unrealized market value gain was £2,022k (2022 - £3,476k market value loss).

These assets are managed by CCLA Investment Management, the investment advisers for the Board.

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:

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.

In so far as the directors are aware, there is no relevant audit information of which the charitable company’s auditors are unaware; the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 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: W S Downing Wadham | ‘ Date: 9 May 2024 16

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

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 2023 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:

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.

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

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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:

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 16, 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 a

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

Irregularities, including fraud, are instances of noncompliance 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

Karem Cron Date: 7 June 2024

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 2023

Unrestricted Restricted Endowment Total Total
Notes Funds Funds Funds 2023 2022
£’000 £’000 £’000 £’000 £’000
INCOME AND ENDOWMENTS
Donations
- Parish contributions 2 3,852 101 - 3,953 4,227
- Archbishops’ Council 3a 847 2,526 - 3,373 2,191
- Other grants & donations 3b 120 269 - 389 490
Charitable activities 4 529 86 - 615 712
Other activities 5 439 - 45 484 466
Investments 6 241 - 1,025 1,266 1,098
Other– gains on sale of tangible fxed
asset properties - - 4,083 4,083 856
6,028 2,982 5,153 14,163 10,040
EXPENDITURE
Raising funds 7 - - 180 180 59
Charitable activities
- Contributions to Archbishops’ Council 8 528 - - 528 415
- Parish Ministry 9 6,461 1,216 - 7,677 6,791
- Support for Ministry 10 825 340 - 1,165 1,161
- Support for Schools 11 266 144 - 410 398
8,080 1,700 180 9,960 8,824
Net (expenditure) / income before
investment gains (2,052) 1,282 4,973 4,203 1,216
Net (losses) / gains on investments 257 90 2,246 2,593 (3,473)
Net (expenditure) / income (1,795) (1,372) 7,219 6,796 (2,257)
Transfers between funds 26 907 (96) (811) - -
Net movement in funds (888) 1,276 6,408 6,796 (2,257)
Total funds brought forward 25 9,132 2,833 66,309 78,274 80,531
Total funds carried forward 25 8,244 4,109 72,717 85,070 78,274

All incoming resources and resources expended derive from continuing activities. The notes on pages 24 to 50 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 2023

Total income
Expenditure
Operating (defcit) / surplus for the year
Net (losses) / gains on investments
Net (expenditure) for the year
Other comprehensive income:
Net assets transferred from endowments
Total comprehensive (expenditure) / income		 2023
2022
£’000
£’000
9,010
8,254
(9,780)
(8,765)
(770)
(511)
347
(510)
(423)
(1,021)
811
792
388
(229)

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 24 to 50 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 2023

Company Number 00271752

Notes 2023 2023 2022 2022
£’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 16 34,864 34,806
Investments
Investment property 17 15,625 15,460
Investments 17 34,005 27,690
84,494 77,956
CURRENT ASSETS
Debtors 18 2,020 978
Cash at bank 19 629 606
2,649 1,584
CREDITORS
Amounts falling due within one year 20 (1,353) (1,119)
NET CURRENT ASSETS 1,296 465
TOTAL ASSETS LESS CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES 85,790 78,421
CREDITORS
Amounts falling due after more
than one year 21 (720) (147)
NET ASSETS 85,070 78,274
FUNDS OF THE CHARITY
Endowment funds 25 72,717 66,309
Restricted Income funds 25 4,109 2,833
Unrestricted Income funds:
- General funds 25 5,786 5,637
- Designated funds 25 2,458 3,495
85,070 78,274

The financial statements were approved by the Board of Directors on 9 May 2024 and were signed on its behalf by:

W S Downing

Date: 9 May 2024

The notes on pages 24 to 50 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 2023

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
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
(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		 2023
£’000
1,266
5,789
(1,383)
(4,090)
25
(1,266)
(4,083)
(1,042)
807		 2023
£’000
(1,356)
1,582		 2022
£’000
1,098
1,614
(1,938)
(497)		 2022
£’000
(874)
277
28
(1,098)
(833)
(348)
161
226
2,006		 (597)
2,603
2,232 2,006
4,203
(5,559)		 1,216
(2,090)
(1,356) (874)
629
1,603		 606
1,400
2,232 2,006

The notes on pages 24 to 50 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 2023

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 c), 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.

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.

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Notes to the Financial Statement Year Ended 31 December 2023

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.

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) Investment property

Investment properties

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

Glebe land with the potential for development is valued according to its agricultural value until such time as planning permission has been granted and is free from challenge and a signed agreement is in place with developer who will purchase the land, at which point it is revalued to reflect the development value, provided this can be determined with reasonable accuracy and taking into account timing and the potential for development not actually taking place. This is chosen as the point of revaluation as up until this point there is no developable land, and both sides can walk away from the deal, delay or renegotiate the agreement, so there is uncertainty regarding the timing and value of any receipt. Costs incurred by WDBF in relation to enabling the development, should there be any, will initially be capitalised; if the development is unsuccessful any aborted costs will be taken to the Statement of Financial Activities as an investment loss.

e) 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.

f) Other accounting policies

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Notes to the Financial Statement Year Ended 31 December 2023

g) Fund balances

“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.

h) 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 23 below;

  4. Receipts of Ministry Share, Donations for the Ministry Support Fund, and Fees are recognised in the year under review up to 9 February of the following year.

i) 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

26

Notes to the Financial Statement Year Ended 31 December 2023

Total Funds
2023
£’000
2. PARISH CONTRIBUTIONS
Current year’s allocation
5,352
Ministry Support Fund Grants
(430)
Stratregic Development Funding Grant (SDF)
(272)
Lowest Income Communities Grants (LInC)
(683)
Net Ministry Share Request
3,967
Shortfall in contributions
(130)
3,837
Arrears for previous years
15
3,852
Ministry Support Fund donations - Restricted
101

3,953
TOTAL		 Total Funds
2022
£’000
5,545
(656)
(232)
(504)
4,153
(185)
3,968
50
4,018
209
4,227

The Ministry Share system was adopted from 1 January 2022. The system included a grants system which saw grants of £430k from the Ministry Support Fund, £272k from SDF and £683k from the LInC being awarded. Donations of £101k were received from Benefices to support Ministry and Mission in other areas of the Diocese - these are restricted donations.

2023 2023 2023 2023 2022 2022
Net Ministry Total
Total
Net Ministry
Total		 (Decrease) (Decrease)
Share Request Shortfall Received Received Share Request Received Increase / Increase /
£’000 £’000 £’000 % £’000 % £’000
%
Deanery
Greater Dudley 949
27
922
97.2
997
954
- 32
(3.4)
Kidderminster & Stourport 560
18
542
96.8
549
544
- 2
(0.4)
Malvern & Upton 574
30
544
94.8
599
554
- 10
(1.8)
Pershore & Evesham 665
34
631
94.9
710
679
- 48
(7.1)
Redditch & Bromsgrove 472
13
459
97.2
507
476
- 17
(3.6)
Worcester 747
8
739
98.9
791
761
- 22
(2.9)
3,967
130
3,837
96.7
4,153
3,968
-131
(3.2)

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

27

Notes to the Financial Statement Year Ended 31 December 2023

otes to the Financial Statement
Year Ended 31 December 2023
Unrestricted
Restricted
Funds
Funds
2023
2023
£’000
£’000
3a. ARCHBISHOPS’ COUNCIL
Lower Income Communites Funding (LInC)
793
-
Resourcing Ministerial Education Grant (RME)
-
80
Registry - Church Commissioners
54
-
Donation in Kind
-
-
Ministry Hardship Grants for Individuals
-
-
Diocese Improvement Programme Grant (DIP)
-
1,019
Minor Repair and Improvements Grant (MR&I)
-
135
Myriad Grant
-
20
Energy Grant for Parishes
-
-
Calling Young Disciples (SDF Grant)
-
64
Resourcing Churches (SDF Grant)
-
1,076
Capacity Grant Funding (SDF Grant)
-
132
847
2,526
3b. OTHER GRANTS & DONATIONS
Benefact Trust Grant
-
107
Education Grants
9
144
Parsonage Grants
24
-
Ministry Restricted Donations
-
3
Net Zero Carbon
-
15
Developing Ministry Course
20
-
Sundry Income
35
-
Safeguarding Income
32
-
Income from sale of donated books
-
-
120
269
4. CHARITABLE ACTIVITIES
Statutory fees
389
-
Education Service Level Agreements
127
-
Education Academy Conversion Fees
-
-
Trust Income
- Clergy Widows and Orphans Fund
-
11
- Ordination Candidates Fund
-
30
-Church Schools Improvement and Maintenance Fund
13
-
- Sundry Trust Funds
-
45
529
86
5. OTHER ACTIVITIES
Insurance claim
-
45
Rental income from parsonages
355
-
Rental income from other property
42
-
Recharges – rent, salary and service charge
42
-
439
45
Total Funds 2022
823
1,368
Total Funds 2022
122
368
Total Funds 2022
649
63
Endowed Funds
2023 £’000
Unrestricted Funds
2023 £’000
Total Funds 2022
466
-		 Total
Funds
2023
£’000
793
80
54
-
-
1,019
135
20
-
64
1,076
132
3,373
107
153
24
3
15
20
35
32
-
389
389
127
-
11
30
13
45
615
45
355
42
42
484
2,191
490
712
Total Funds
2023 £’000


466		 Total
Funds
2022
£’000
776
122
47
16
46
-
-
-
283
101
727
73
2,191
122
145
50
11
-
-
32
27
103
490
484
137
21
11
32
7
20
712
5
291
49
121
Total Funds
2022 £’000
466

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

28

Notes to the Financial Statement Year Ended 31 December 2023

Unrestricted
Funds
2023
£’000
6. INVESTMENTS
Dividends receivable
241
Interest receivable
-
Rents receivable
-
241
7. RAISING FUNDS
Glebe Agent’s fees and expenses
-
8. CONTRIBUTIONS TO ARCHBISHOPS’ COUNCIL
Training for Ministry
215
National Church responsibilities
155
Retired clergy housing costs
85
Pooling of ordination candidates’ costs
61
General Synod Representatives’ Expenses
12
528
9. PARISH MINISTRY
Stipends and National Insurance
2,434
Pension costs
592
Housing costs – Council Tax
248
Parsonage Houses maintenance
1,268
Removal, resettlement and other grants (note 12)
121
Lowest Income Communities Grants (note 12)
380
Resourcing Churches
-
Energy grants to Parishes (note 12)
-
Other expenses
137
Healthier Churches Grants (note 12)
561
Support costs - Administration (see note 13)
720
6,461
10. SUPPORT FOR MINISTRY
Ministry and Discipleship
309
Calling Young Disciples project
25
Church Buildings Team
125
Capacity Restructuring
-
Safeguarding
142
World Church Links
8
Ordination Candidates Allowances and tuition fees
42
Ministry Hardship Grants for individuals (note 12)
-
Confrence Delivery Costs
39
Transformation Delivery Unit
-
Net Carbon Zero
-
Support costs – Administration (see note 13)
135
825
11. SUPPORT FOR SCHOOLS
Education team
221
Support costs – Administration (see note 13)
45
266
Total Funds 2022
-
Total Funds 2022
415
Total Funds 2022
5,402
Total Funds 2022
798
Total Funds 2022
266
Total Funds 2022
135		 Unrestricted
Funds
2023
£’000
6. INVESTMENTS
Dividends receivable
241
Interest receivable
-
Rents receivable
-
241
7. RAISING FUNDS
Glebe Agent’s fees and expenses
-
8. CONTRIBUTIONS TO ARCHBISHOPS’ COUNCIL
Training for Ministry
215
National Church responsibilities
155
Retired clergy housing costs
85
Pooling of ordination candidates’ costs
61
General Synod Representatives’ Expenses
12
528
9. PARISH MINISTRY
Stipends and National Insurance
2,434
Pension costs
592
Housing costs – Council Tax
248
Parsonage Houses maintenance
1,268
Removal, resettlement and other grants (note 12)
121
Lowest Income Communities Grants (note 12)
380
Resourcing Churches
-
Energy grants to Parishes (note 12)
-
Other expenses
137
Healthier Churches Grants (note 12)
561
Support costs - Administration (see note 13)
720
6,461
10. SUPPORT FOR MINISTRY
Ministry and Discipleship
309
Calling Young Disciples project
25
Church Buildings Team
125
Capacity Restructuring
-
Safeguarding
142
World Church Links
8
Ordination Candidates Allowances and tuition fees
42
Ministry Hardship Grants for individuals (note 12)
-
Confrence Delivery Costs
39
Transformation Delivery Unit
-
Net Carbon Zero
-
Support costs – Administration (see note 13)
135
825
11. SUPPORT FOR SCHOOLS
Education team
221
Support costs – Administration (see note 13)
45
266
Total Funds 2022
-
Total Funds 2022
415
Total Funds 2022
5,402
Total Funds 2022
798
Total Funds 2022
266
Total Funds 2022
135		 Restricted Endowned
Funds
Funds
2023
2023
£’000
£’000
-
758
-
12
-
255
-
1,025
-
180
-
-
-
-
-
-
-
-
-
-
-
-
155
-
-
-
-
-
-
-
-
-
-
-
1,050
-
-
-
11
-
-
-
-
-
1,216
-
-
-
64
-
-
-
132
-
-
-
-
-
94
-
20
-
-
-
30
-
-
-
-
-
340
-
144
-
-
-
144
-
-
59
-
-
1,389
-
363
-
132
-
-
963		 Total
Funds
2023
£’000
999
12
255
1,266
180
215
155
85
61
12
528
2,589
592
248
1,268
121
380
1,050
-
148
561
720
7,677
309
89
125
132
142
8
136
20
39
30
-
135
1,165
365
45
410
59
415
6,791
1,161
398
1,098		 Total
Funds
2022
£’000
878
1
219
1,098
59
216
159
81
(48)
7
528 415
415 2,726
644
248
899
45
41
749
267
121
280
771
2,434
592
248
1,268
121
380
-
-
137
561
720
6,461 6,791
5,402 244
232
121
73
122
3
149
38
-
-
17
162
309
25
125
-
142
8
42
-
39
-
-
135
825 1,161
798 350
48
221
45
266 398
266

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

29

Notes to the Financial Statement Year Ended 31 December 2023

12. GRANT ANALYSIS

2023
Grants to Parishes
£'000
Energy Grants to Parishes- 169 individual grants to Parishes
-
Lowest Income Communities Grants
Dudley - Facilities manager
49
Credley Heath Community Link - Assistant Centre Manager
153
Bromsgrove - Youth Worker
64
South East Worcester - Children, Youth and Family Worker
55
Children and Youth Network Development
29
Dudley St Augustines - Welcome Area and Stay and Play
10
Parish Mission Suppot - Stewarship and Resources
10
Parish Mission Suppot - Digital Communications
7
Dudley Group Ministry - Administrator
-
Ipsley Parish - Matchborough Community Missioner
-
Other
3
380
Healthier Churches Grants
North Worcester - Children and Families Worker
158
Bromsgrove - Youth Worker
93
South East Worcester - Children, Youth and Family Worker
55
All Saints - Children and Youth Worker
148
Children and Youth Network Development
29
Shelsley Beauchamp - Alpha Course
3
Mission Accompaniers
61
Parish Mission Suppot - Stewarship and Resources
10
Parish Mission Suppot - Digital Communications
4
Kempsey - Children & Families Missioner
-
Malvern Chase - Community Minister and Operations Manager
-
Malvern Link with Cowleigh - Communitry Fridge and Collaborative Café
-
Malvern Link with Cowleigh - Chaplaincy
-
Pershore - Children & Families Worker
-
561
Grants to Individuals
2023
£'000
Removal, Resettlement and Other Grants
Resettlement Grants
36
First Appointment Grants
45
Removal Grants
40
121
Ministry Hardship Grants for Individuals
20
Total Grant Expenditure
1,082		 2023
Grants to Parishes
£'000
Energy Grants to Parishes- 169 individual grants to Parishes
-
Lowest Income Communities Grants
Dudley - Facilities manager
49
Credley Heath Community Link - Assistant Centre Manager
153
Bromsgrove - Youth Worker
64
South East Worcester - Children, Youth and Family Worker
55
Children and Youth Network Development
29
Dudley St Augustines - Welcome Area and Stay and Play
10
Parish Mission Suppot - Stewarship and Resources
10
Parish Mission Suppot - Digital Communications
7
Dudley Group Ministry - Administrator
-
Ipsley Parish - Matchborough Community Missioner
-
Other
3
380
Healthier Churches Grants
North Worcester - Children and Families Worker
158
Bromsgrove - Youth Worker
93
South East Worcester - Children, Youth and Family Worker
55
All Saints - Children and Youth Worker
148
Children and Youth Network Development
29
Shelsley Beauchamp - Alpha Course
3
Mission Accompaniers
61
Parish Mission Suppot - Stewarship and Resources
10
Parish Mission Suppot - Digital Communications
4
Kempsey - Children & Families Missioner
-
Malvern Chase - Community Minister and Operations Manager
-
Malvern Link with Cowleigh - Communitry Fridge and Collaborative Café
-
Malvern Link with Cowleigh - Chaplaincy
-
Pershore - Children & Families Worker
-
561
Grants to Individuals
2023
£'000
Removal, Resettlement and Other Grants
Resettlement Grants
36
First Appointment Grants
45
Removal Grants
40
121
Ministry Hardship Grants for Individuals
20
Total Grant Expenditure
1,082		 2023
No. of
Grants
13
22
15
50
20		 2022
£'000
267
-
-
-
-
-
-
-
3
17
21
-
41
-
-
-
-
-
-
37
-
2
86
52
8
25
70
280
2022
2022
£'000
No. of
Grants
13
5
22
13
10
4
45
22
38
22
671

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

30

Notes to the Financial Statement Year Ended 31 December 2023

13. RAISING FUNDS

13.RAISING FUNDS
Activities Undertaken
Directly
£’000
180
Contributions to Archbishops’ Council
528
Parish Ministry
6,957
Support for Ministry
1,030
Support for Schools
365
Charitable activities
8,880
9,060
7,843
Cost of generating funds
Total Funds 2022		 Support
Costs
£’000
-
-
720
135
45
900
900
981		 Total Funds
Total Funds
2023
2022
£’000
£’000
180
59
528
415
7,677
6,791
1,165
1,161
410
398
9,780
8,765
9,960
8,824
8,824
415
6,791
1,161
398
8,765
8,824

ANALYSIS OF SUPPORT COSTS
Central Administration
747
-
-
Governance:
- External audit
18
-
-
- Registrar and Chancellor
135
-
-
- Synodical costs
-
-
-
900
-
-
964
-
-
UnrestrictedRestricted Endowned
Funds
Funds
Funds
2023
2023
2023
£’000
£’000
£’000
LYSIS OF SUPPORT COSTS
Total Funds 2022		 747
18
135
-
900
964
Total
Funds
2023
£’000		 807
21
135
1
Total
Funds
2022
£’000
964

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 their own administrative support.

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

31

Notes to the Financial Statement

Year Ended 31 December 2023

14. STAFF COSTS
Gross Salaries
Employers National Insurance Costs
Employer Pension Costs
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 (SDF) from the National Church,
_Bishops’ offce funding from the Church Commissioners, grants from trust funds and a
contributions from reserves.		 22
24
46
28
8
36
2023
£’000
1,340
128
205
1,673
No. in 2023
No. in 2023		 23
24
2022
£’000
1,300
126
227
1,653
No. in 2022
47
30
9
No. in 2022
39

There are three employees with emoluments above £60,000 per annum (2022: two employees). Pension contributions are paid for 45.3 employees at year end (2022: 46.6 employees).

As part of a project coming to an end during the year there were two redundancies in 2023 (2022 – two). Accordingly, the total paid during the year in termination and redundancy payments was £8k (2022: £10k).

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.

The WDBF paid an average of 88 (2022: 96) stipendiary clergy as office-holders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

The WDBF paid an average of 88 (2022: 96) stipendiary clergy
ffhld hld hl d
Stipends
National Insurance contributions
Pension costs - current year
Pension costs - defcit reduction
as oce-oers oing parocia or iocesan appointments
in the diocese, and the costs were as follows:
 2023
£’000
2,552
202
617
-
3,371		 2022
£’000
2,636
218
741
191
3,786

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

32

Notes to the Financial Statement Year Ended 31 December 2023

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 2023 they were:

Diocesan Secretary and Company Secretary John Preston (resigned September 2023) Diocesan Secretary and Company Secretary Andy Todd (appointed September 2023) Director of Finance Helen Archer-Smith (resigned April 2023) Director of Finance Shaun Mooney (appointed April 2023) Director of Education Tim Reid Director of Ministry and Discipleship Jonathan Kimber (resigned April 2023) Director of Ministry and Discipleship Roger Latham (appointed July 2023) Director of Communications Samantha Setchell Deputy Diocesan Secretary - Restructuring Robert Quarton (resigned April 2023) Deputy Diocesan Secretary - Restructuring Damien Herbert (appointed April 2023) Director of Ordinands John Fitzmaurice

Remuneration and pensions for these seven roles amounted to £438,950 (2022: £328,997 for six roles).

Trustees’ emoluments

No trustee received any remuneration for services as Trustee. Four (2022: five) trustees received travelling and out of pocket expenses, totaling £10,671 (2022: £8,953) in respect of General Synod duties, duties as archdeacon or rural dean and other dutiesas 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/
Resettlement Grant
The Venerable M Badger (appointed 1 January 2024) Yes Yes No
The Reverend A C Davies Yes Yes No
The Right Reverend M Gorick No Yes No
The Venerable N J Groarke Yes Yes No
The Venerable R G Jones (retired 30 November 2023) Yes Yes No
The Reverend Canon C A Lording Yes Yes No
The Reverend A Todd (resigned 31 August 2023) Yes Yes No
The Reverend R Johnson Yes Yes No
The Reverend Canon T J Williams Yes Yes No
15. SURPLUS FOR THE FINANCIAL YEAR 2023 2022
£’000 £’000
Is stated after charging / (crediting):
Depreciation 25 28
(Surplus) on disposal of fxed assets (4,083) (856)
Operating Lease – Rent Old Palace - -
Operating Lease – Rent Lowesmoor Wharf 27 27
Auditors Remuneration – external scrutiny 18 21

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

33

Notes to the Financial Statement Year Ended 31 December 2023

COST
At 1 January 2023
Additions
Disposals
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
Disposals
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
Unrestricted Funds
16. TANGIBLE FIXED ASSETS		 Board
Houses
£'000
1,522
-
-
1,522
-
-
-
-
1,522
1,522		 Leasehold
Improvements
£'000
67
-
-
67
33
19
-
52
15
34		 Leasehold
Improvements
£'000
67
-
-
67
33
19
-
52
15
34		 Fixtures
and Fittings
Totals
£'000
£'000
47
1,636
7
7
-
-
54
1,643
39
72
6
25
-
-
45
97
9
1,546
8
1,564
RESTRICTED FUNDS
COST
At 1 January 2023
Additions
Disposals
Transfers
At 31 December 2023
DEPRECIATION
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
Restricted Funds		 Glebe Team
Vicarages &
Curates' Houses
£'000
12,821
1,338
(388)
(606)
13,165
-
13,165
12,821		 Parsonages
Houses
£'000
20,229
45
(919)
606
19,961
-
19,961
20,229		 Pastoral
Buildings
Totals
£'000
£'000
192
33,242
-
1,383
-
(1,307)
-
-
192
33,318
-
-
192
33,318
192
33,242
Total Tangible Fixed Assets
Unrestricted funds – Net Book Value
Restricted funds – Net Book Value		 2023
£’000
1,546
33,318
34,864		 2022
£’000
1,564
33,242
34,806

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

34

Notes to the Financial Statement Year Ended 31 December 2023

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 responsiblefor 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 £33.3m (2022: £33.2m) 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 2023
15,460
26,290
Additions/increase in deposit accounts
-
4,090
Disposals /decrease in deposit accounts
(406)
-
Increase/(Decrease) in revaluation
571
2,022
At 31 December 2023
15,625
32,402
At 31 December 2022
15,460
26,290		 Cash
£’000
1,400
2,660
(2,457)
-
1,603
1,400		 Total
£’000
43,150
6,750
(2,863)
(2,593)
49,630
43,150
UK investment property
Unlisted UK investment shares
CBF Investments		 Total 2023
£’000
15,625
32,402
1,603
49,630		 Investment property was valued
on an open market basis as at
31 December 2023 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 2022
£’000
15,460
26,290
1,400
43,150

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

35

Notes to the Financial Statement Year Ended 31 December 2023

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 accrual
21. CREDITORS:
Amounts falling due after more than one year
Accruals
22. OPERATING LEASES
Total commitments under non-cancellable
operating leases areas follows:
Photocopiers at 16 Lowesmoor Wharf
Payable within one year of the balance sheet date
Payable in the second to ffth years inclusive
of the balance sheet date
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 2023
£’000
243
41
481
82
1,173
2,020
629
170
-
492
93
329
269
1,353
720
720
4
17
21
24
30
54		 Total 2022
£’000
296
41
535
26
80
978
606
157
33
614
99
102
114
1,119
147
147
-
-
-
24
20
44

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

36

Notes to the Financial Statement Year Ended 31 December 2023

23. PENSION COMMITMENTS - Church of England Funded Pension Scheme

The Worcester Diocesan Board of Finance 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 those of the Responsible Bodies. Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to 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 (2023: £607k, 2022: £932k).The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £Nil (2022: £191k).

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:

Following the finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.

The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:

% of pensionable stipends Jan 2018 to Dec 2020 Jan 2021 to Dec 2022 Jan 2023 onwards
Defcit repair contributions
11.9%
7.1%
0.0%

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

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

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

37

Notes to the Financial Statement

Year Ended 31 December 2023

PENSION COMMITMENTS - 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 2022 and over 2023 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		 2023
£’000
£’000
-
-
-
-
-
-		 2022
£’000
£’000
191
(107)
-
(84)
(191)
-
-

*Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2023 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2022 onwards since pensionable stipends for the remainder of the recovery plan were already known.

Dec 2023 Dec 2022 Dec 2021 Dec 2020
Discount rate n/a n/a 0.0% p.a. 0.2% p.a.
Price infation n/a n/a n/a 3.1% p.a.
Increase in total pensionable payroll n/a 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

38

Notes to the Financial Statement Year Ended 31 December 2023

PENSION COMMITMENTS - Church of England Funded Pension 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 (2023: £177k, 2022: £190k).

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.

For the Pension Builder Classic section, the 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, effective1January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. 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 next valuation is due at 31 December 2022. Calculations for this are currently underway.

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.

In December 2023 WDBF was advised by the Pension Board that it had a useable surplus on its Church Workers Pension Fund Defined Benefit Scheme of £621k.This amount will be drawn down from April 2024 by way of a pension contribution holiday.

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

39

Notes to the Financial Statement Year Ended 31 December 2023

24. SUMMARY OF MOVEMENTS IN FUNDS

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 Income Funds
Education Fund
Transformation Delivery Unit
Resourcing Churches
Calling Young Disciples
Capacity Grant Restructuring
Diocesan Pastoral Account Fund
Benefact Trust
Net Carbon Zero Fund
Ordination Candidates Fund
Clergy Widows and Orphans Fund
Lay Staff Support Fund
Ministry Restricted Donations
Resourcing Ministerial Education Fund
Diocese Investment Programme Fund
Minor Repair and Improvements Fund
Myriad Fund
Ministry Support Fund
Ministry Hardship Grants for Individuals
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		 1 January
2023
£'000
5,637
2,220
722
35
10
489
19
3,495
9,132
232
-
-
-
2,308
-
-
-
-
9
-
157
-
-
-
-
24
103
-
2,833
28,991
17,945
19,373
66,309
78,274		 Income and
Endowments
£'000
5,235
-
-
-
-
793
-
793
6,028
144
30
1,045
64
132
-
107
15
30
11
-
3
81
1,019
135
20
101
-
-
45
2,982
-
3,557
1,596
5,153
14,163		 Expenditure
£'000
(6,426)
(561)
-
-
(10)
(1,064)
(19)
(1,654)
(8,080)
(144)
(30)
(1,050)
(64)
(132)
-
(107)
-
(30)
(11)
-
(3)
(64)
-
-
-
-
(20)
-
(45)
(1,700)
-
(180)
-
(180)
(9,960)		 Gains /
(Losses)
£'000
257
-
-
-
-
-
-
-
257
18
-
-
-
-
71
-
-
-
-
1
-
-
-
-
-
-
-
-
-
90
1,204
892
150
2,246
2,593		 Transfers
December
2023
£'000
£'000
1,083
5,786
-
1,659
(215)
507
27
62
12
12
-
218
-
-
(176)
2,458
907
8,244
-
250
-
5
-
-
-
-
-
-
2,379
-
-
-
15
-
-
-
-
-
10
-
-
-
174
-
1,019
-
135
-
20
(101)
-
-
4
-
103
-
-
(96)
4,109
-
30,195
(811)
21,403
21,119
(811)
72,717
-
85,070

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

40

Notes to the Financial Statement Year Ended 31 December 2023

25. ANALYSIS OF TRANSFERS BETWEEN FUNDS

From Endowment Fund to General Fund for
stipends under Total Return (see note 28)
From General fund
- Annual allocation to Ministry Support Fund
- Annual allocation to Net Carbon Zero Fund
Use of Ministry Support Fund
Designed fund for 2026 clergy conference
Calling Young Disciples adjustment as project is
now finished
Total		 Unrestricted
General fund
£'000
811
(114)
(27)
430
(12)
(5)
1,083		 Unrestricted
Designated fund
£'000
-
114
27
(329)
12
-
(176)		 Endowed
funds
Total
2023
£'000
£'000
(811)
-
-
-
-
-
-
-
-
-
(811)
-
Total
Unrestricted
fund
£'000
811
-
-
101
(5)
907		 Restricted
funds
£'000
-
-
-
(101)
5
(96)

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

41

Notes to the Financial Statement Year Ended 31 December 2023

26. SUMMARY OF NET ASSETS BETWEEN FUNDS

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
Net Carbon Zero Fund
Lay Staff Support Fund
Resourcing Ministerial Education Fund
Diocese Investment Programme Fund
Minor Repair and Improvements Fund
Myriad Fund
Ministry Hardship Grants for Individuals
Maynard and Outram Smith Library
Restricted Funds
Endowment Funds
Diocesan Stipends Capital Fund
Diocesan Parsonage Capital Fund
Endowment Funds
TOTAL FUNDS		 Tangible
Fixed Assets
£'000
1,546
-
-
-
-
-
-
-
1,546
-
192
-
-
-
-
-
-
-
-
192
13,165
19,961
33,126
34,864		 Investment
Property
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,625
-
15,625
15,625		 Investments
£'000
4,462
-
-
-
-
-
-
-
4,462
240
1,654
-
10
-
-
-
-
-
-
1,904
25,229
2,410
27,639
34,005		 Current Assets
£'000
90
-
-
-
-
546
-
546
636
10
533
15
-
174
1,019
135
20
4
103
2,013
-
-
-
2,649		 Creditors
£'000
(682)
(593)
-
-
-
(328)
-
(921)
(1,603)
-
-
-
-
-
-
-
-
-
-
-
-
(470)
(470)
(2,073)		 Inter
Fund Loan
Net Assets
£'000
£'000
370
5,786
2,252
1,659
507
507
62
62
12
12
-
218
-
-
2,833
2,458
3,203
8,244
-
250
-
2,379
-
15
-
10
-
174
-
1,019
-
135
-
20
-
4
-
103
-
4,109
(2,421)
51,598
(782)
21,119
(3,203)
72,717
-
85,070

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

42

Notes to the Financial Statement Year Ended 31 December 2023

27. PURPOSE OF FUNDS

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

DESIGNATED FUNDS

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

Ministry Support Fund (MSF) is a designated fund to offer transitional support for benefices with the new ministry share system and transition to financial sustainability.

Net Carbon Zero Fund (NZC) is a designated fund 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 every 3 years. The most recent conference was in September 2023.

Lower Income Communities Designated Fund (LInC) is income received to support stipendiary ministry in the most deprived areas of the Diocese. Due to a number of reasons not all of the planned projects could take place and hence the increase of the funds held at the year end. There are initial plans to enable these funds to be utilised.

Calling Young Disciples Fund (CYD) 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. This project came to an end in August 2023.

RESTRICTED FUNDS

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

Transformation Delivery Unit Fund (TDU) is Transformation costs, primarily staff cost related, that are funded by Archbishops’ Council.

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

Calling Young Disciples Fund (CYD) is to finance the cost of Mission Enablers. The expenditure is funded by grants from the Archbishops’ Council (Strategic Development Funding (SDF)).

Capacity Grant Restructuring Fund is income received from Archbishops’ Council (Strategic Development Funding (SDF)) to fund additional central diocesan costs to enable strategic transformation within the diocese.

Diocesan Pastoral Account Fund (DPA) 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:

Benefact Trust Fund is to contribute towards the transformation strategy. This funding was fully spent during the year and no reserve is carried forwards.

Net Carbon Zero Fund (NZC) funding received from the Archbishops’ Council to support the transition to Net Zero Carbon position.

Ordination Candidates Fund (OCF) 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.

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.

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

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.

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

43

Notes to the Financial Statement Year Ended 31 December 2023

27. PURPOSE OF FUNDS

Resourcing Ministerial Education Fund (RME) 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.

Diocesan Investment Programme Fund (DIP) is income received from Archbishops’ Council to fund church renewal projects within the diocese.

Minor Repair and Maintenance Fund (MR&I) is income received from Archbishops’ Council to fund urgent and necessary repairs and improvements to church buildings within the diocese.

Myriad Fund is income received from Myriad to fund a learning hub to recruit and develop lay church planting teams.

Ministry Support Fund (MSF) 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.

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.

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

ENDOWMENT FUNDS

Diocesan 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.

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

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.

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

44

Notes to the Financial Statement Year Ended 31 December 2023

28. ENDOWMENT FUND - TOTAL RETURN

28.ENDOWMENT FUND - TOTAL RETURN 28.ENDOWMENT FUND - TOTAL RETURN 28.ENDOWMENT FUND - TOTAL RETURN
At 1 January 2023
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
Cost of managing endowments
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 Net Zero Carbon Fund
Net movements in year:
At 31 December 2023
Trust for
Unapplied
2023 Total
2022 Total
Investment
Total return Endownment Endownment
£’000
£’000
£’000
£’000
15,598
-
15,598
15,598
13,393
-
13,393
10,940
-
17,945
17,945
22,319
28,991
17,945
46,936
48,857
-
1,070
1,070
963
-
2,487
2,487
712
-
2,096
2,096
(2,745)
-
-
-
191
-
(180)
(180)
(59)
1,204
(1,204)
-
-
1,204
4,269
5,473
(938)
-
(670)
(670)
(847)
-
(114)
(114)
(109)
-
(27)
(27)
(27)
-
(811)
(811)
(983)
1,204
3,458
4,662
(1,921)
30,195
21,403
51,598
46,936
46,936
1,070
2,487
2,096
-
(180)
-		 48,857
963
712
(2,745)
191
(59)
-
5,473
(670)
(114)
(27)		 (938)
(847)
(109)
(27)
(811) (983)
4,662 (1,921)
51,598 46,936

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 underlying 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 2023 was £3,371k (2022 - £3,786k).

29. FINANCIAL INSTRUMENTS
Financial assets measured at fair value		 2023
£’000
48,027		 2022
£’000
41,750

Financial assets measured at fair value comprise unlisted investments and agricultural land and buildings.

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

45

Notes to the Financial Statement Annual Report Year Ended 31 December 2023

30. 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 may be summarised as follows:

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		 2023
£’000
16,736
215
184
214
1,939
19,288		 2022
£’000
15,406
223
164
231
1,737
17,761

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

46

Notes to the Financial Statement Year Ended 31 December 2023

31. 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 2023 are as shown below. During the year ended 31 December 2023 the Board has received grants from the charities and trusts as follows:

Grants Grants Amounts due Amounts due
Receivable Receivable to/(from) to/(from)
2023 2022 the DBF at the DBF at
31 Dec 2023 31 Dec 2022
Worcester Diocesan Social Responsibility Fund 22,000 22,000 - -
Worcester Diocesan Ordination Candidates Fund 32,259 32,300 - 5,300
Worcester Diocesan Church Schools Improvement
and Maintenance Fund 144,500 134,500 - -
Worcester Diocesan Clergy Holiday Fund 5,250 4,136 - -
Lye Church Estate Trust 8,799 8,750 - -
Cholmondeley Bequest Fund 1,236 1,229 - -
Trust Administration Fund 2,251 1,184 - -
Special Purposes Fund 8,040 8,001 - -
Redditch Holy Trinity Charity 25,000 25,000 - 25,000
Diocesan Records Offce Income Fund 12,685 19,074 8,640 8,687
Worcester Diocesan Academies Trust - - 700 -
Clergy Widows & Orphans Income 10,710 10,577 - -
Clent Hall Parish Hall 6,000 6,000 - -
Abberton Spire Trust Fund 14,500 13,675 977 3,000

In addition to the above grants, an administration contribution is paid from the Church Schools Improvement and Maintenance Fund. This figure in 2023 was £9,014 (2022: £13,013)

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:

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.

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

47

Notes to the Financial Statement Year Ended 31 December 2023

32. PRIOR YEAR COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

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

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

48

Notes to the Financial Statement Year Ended 31 December 2023

33. PRIOR YEAR COMPARATIVE ANALYSIS OF MOVEMENT 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

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

49

Notes to the Financial Statement Year Ended 31 December 2023

34. PRIOR YEAR COMPARATIVE OF NET ASSETS BETWEEN FUNDS

Tangible Investment Inter
Fixed Assets Property Investments Current Assets Creditors Fund Loan Net Assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Unrestricted Funds
General Fund 1,564 - 2,554 239 (465) 1,745 5,637
Designated Funds
Healthier Churches Fund - - - - (216) 2,436 2,220
Ministry Support Fund - - - - - 722 722
Net Carbon Zero Fund - - - - - 35 35
Conferences Fund - - - 10 - - 10
Lowest Income Communities Fund - - - 489 - - 489
Calling Young Disciples - - - 19 - - 19
Designated Funds - - - 518 (216) 3,193 3,495
Total Unrestricted Funds 1,564 - 2,554 757 (681) 4,938 9,132
Restricted Funds
Education Fund - - 222 10 - - 232
Diocesan Pastoral Account Fund 192 - 1,583 533 - - 2,308
Lay Staff Support Fund - - 9 - - - 9
Ministry Hardship Grants for Individuals - - - 24 - - 24
Maynard and Outram Smith Library - - - 103 - - 103
RME Fund - - - 157 - - 157
Restricted Funds 192 - 1,814 827 - 2,833
Endowment Funds
Diocesan Stipends Capital Fund 12,821 15,460 22,513 - - (3,858) 46,936
Diocesan Parsonage Capital Fund 20,229 - 809 - (585) (1,080) 19,373
Endowment Funds 33,050 15,460 23,322 - (585) (4,938) 66,309
TOTAL FUNDS 34,806 15,460 27,690 1,584 (1,266) - 78,274

50

Company Registration Number 00271752 Registered Charity Number 247778

Published July 2024