DIOCESEOF COVENTRY COVENTRY DIOCESAN BOARD OF FINANCE LIMITED church t4VIWI 'messy youth DIOCESEOF COVENTRY L.: I REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2022 Company Registered Number. 819482 Registered Charity Number. 247828 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2022 CONTENTS Page Me55a8e from Bishop Christopher Ouryear in numbers Chairfs Report Trustee5' and Director￿ Report including the Strateglc Report 5-23 Auditorf5 Report 24-26 Financial Statements Statement of Financial Activities Income and Expenditure Account Balance Sheet Cash Flow Statement Notes to the Flnanclal Statements 27 28 29 30 31-51 COVENTRY DIOCESAN BOARD OF FINA.NCE LIMITED REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 Message from Bishop Christopher The vlslon of restored heotth, new growth ond renewed relotlonships to which I referred in the 2021 report is now ￿￿11 embedded in our diocesan Ilfe. As is clear in this 2022 report, it has provided a useful framework for ordering and assessing much of the activity ofthe DBF. It foms the Structu￿ for Our Shared Futu￿ Framework. The Framework is proving to be a very useful tool for a more intentional engagement process with the Whole Diocese on the 5UPPOrt provided by the D8F to frontllne mlnlstry than we have attempted In the past. It has been very good to see evidence of restored health. new growth and renewed relatlonshlps across the Dlocese much of It the result of the ordinary round of Christian ministry conducted with extraordlnary devotlon- byfalthful clergy, lay leaders and commltted parishioners; some of itthe outworkin8 of new developments enabled by our newty launched Mlsslon Hubs and the resourclng actlvlty of St Marys Coventry. At the ￿rne tlme, It has been mo¥lng to see the energy bywhlch church Communities, schools, the Cathedral and chaplalncies have responded to the 'need5 of the dav. Among those V￿re the sad demlse of our Late Queen Elizabeth which brought particular responsibilities to the Church of England to respond to the pastoral •nd spiritual needs of the country. l am grateful for the opportunities for Chrlstlan ministry that were taken across the Qlocese as we sought to help the people of Coventry. Warwickshlre and the small part of Solihull for which we have care, grieve for our Late Majesty, 8ive thanks for Her remarkable seNlce to the country and commonwealth and to celebrate the new Reign of Klng Charle$111. The cost-of-jlvlng crisls, especially In relation to fuel prices. brought a very different set of challenges to the Di0￿Se but rather than focusing on the financial impact to our own budgets, I was delighted to see the way a number of Warm Hubs, spran8 UP across the Dlocese as we soughtto respond to the immediate and practical needs of many people in our clty, towns and villages. There are certalnly flnanclal pressures on our parlshes whlch Impact upon the DBF. While 8rateful for the assets that past history have bequeathed to U5 and good management in the present that have grown them. l am alsoglad that we are addressingthe intermediate and long-term need to grow our income and to control our costs, and l acknowledge the important part that the Chair of the DBF, the Diocesan Secretsry and Chief Executlve Officer, and the Interlm Dlrector of Flnance are playlng In thls work. Indeed, as l ended my me55age In the previous report by thanking our retiring Diocesan Secretary* Ruth Madow, for her contribution to the Diocese of Coventry. I conclude these comments by expressing my appreciation to her Suc￿$S0r. Jacquellne Ladds, for the skills and glfts that she has brought to her role and whlch are already making a difference to our common Ilfe In a number of helpful ways. The Rt Revd Dr Chr15topher Co¢ksworth. Blshop of Coventry COVENTRY DIOCESAN BOARD OF FINANCE LIMITED REPORT AND FINANCIAL sfATEMENTS For the year ended 31 December 2022 1443 £4.8m collected In Parlsh Share £713k. Use￿ of Equ￿ Hu ofwh awarded with support from Church BulEdinzs Fundin8 Officer 2022 590_ Our Year in Numbers Easter attendance 12,562 14,385 iPPNI8 COmmllllity• 25.079 Christsn•s attend￿ Qtthich 2,461 aged ￿17 ,1,074 ms and thanks8i¥MI85 OV￿ £80k awankd from 89 ConfMumatM)ns 16. 1600 Fune￿￿ ' 9 BCDM courses 13 3075 Facebook likes and reactlonj 104 YouTube sthcrlbers 2116 Twltter folk)wers 10,634 people. reached with mo new Priests Over1700 sak￿r&in8 trnining moduks cornpkwl Ovtr 30 site visits by Budd#y ttsm More than £8k awanled f< 77 retreat 8rants COVENTRY DIOCESAN BOARD OF FINANCE LIMITED REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 Chairfs Report The year ending D￿mber 2022 has brought both challenges and opportunities as we have emerged from the pandemlc: we were startlng to understand what is the "new normal" wlthln the Ilfe of our churches and communities. as well as wider society. when the conflict in Ukraine commenced, seemlngly the trigger for the escalation in energy Costs and the subsequent impact on the cost of living. The call on the church to demonstrate the love of Chrlst to our communltles has perhaps not been so strong for many years as people make difficult decisions as to to allocate their household budgets. I therefore want to thank everyone across the diocese. congregations and volunteers. staff and clergy. for their hard work and faithful prayer5 as we look to demonstrate and extend the kingdom of God across our region. In light of the above, l arn pleased that our partner charity, Together for Change, continue5 to find favour with Warwickshire County Council particularly based upon the work at Saint5 Nuneaton. This has led to slmpler proJect Inltlatlons In places of great need across northem Warwickshire. They contlnue to support projects with refugees and asylum seekers. link workers in schools and outreach work in Warwick in partnershlp with the local churches. They were ideally placed to administer funding from the national church and other funder5 to support warm hub5 in some of the poorest communities wlthln our diocese. The work to establish 4 new church plants in 8edworth, Hlllflelds, ￿le Hill and Wyken is now well under way with stories of positive community impart 5tartin8 to flow. The Mi55ion Hub Churches being established acr055 the diocese ore also creating thelr own [dent￿leS SO that they can offer appropriate supportto other5. As our funding sUPPOrt changes. we want to thank those that have contributed to the Serving Christ Project and the difference this has made to the laity. As with our missional activty, this important work of supportlng the laity continues to evolve as documented within this report. The impact of the pandemic on Parish Share has been felt more keen￿ in these 12 months than In elther of the previous 2 years, compounded by the cost of living crisis, with the final contrlbutlons being 12% lower than the offer5 made at the start of the year. We are grateful for the careful stewardship of our investments by the Investment SukFCommittee and the Glebe Commlttee whlch means we have been able to fund the gap in income from our reserves. The current income and expenditure trends have led us to consider how we might manage ￿sOurceS in the longer term, and we will be creating a long-term tinancial action plan durlng 2023 to ensure we continue the maxlmum levels of mlsslonal attlvlty in the year5 ahead. l am very aware that the burden of caring for and maintaining our places of worship distracts key volunteers from belng more fully Involved In mlssional activlty. As part of our long-term planning a more complete review of our buildings and the needs has been initiatsd and will be reF￿rted on during 2023. This last 12 months has seen an increase In actlvlty by both the Dlocesan Envlronmental Group and the Parsonages Committee as we look to meet the target set by the national church of being Net Zero by 2030, and thls was supported by an Increase in expendItU￿ budget by Dloeesan Synod. A commitment to ensure the Church is a safe place for everyone will continue through 2023. The Past Case Revlew 2 presented Its report during 2022 observlng the dlocese has a "robust, practice-based approach to safeguarding". The reviewers made seven recommendations to further improve our actlvity and these have been turnetl into an attion plan, overseen by the Diocesan Safeguarding Scrutiny Group. Once again, my thanks to all of those that make the life of the diocese an attive and purposeful place in which to work out our faith, both in our own worship of God and in our artivity to love our neighbour. Simon Danks Chair of Coventry Diocesan Board of Finance COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS, REPORT for the year ended 31 December 2020 The trustees. who are also directors forthe purposes of company law, present their combined Trustee5' Report and Directors, Report, together with the audited finanaal ststements, for the year ended 31 December 2022. The Trustees, and Directors, Report 15 presented in section5 as follows: Sectlon I: Strateglc Report- whlch Includes a revlew ofachlevements and perf0rrnan￿ in the year Section 2: Governance Report Sectlon 3: Tru5tees' and Directors. Report Approval SECTION I: STRATEGIC REPORT 1.1 OBJECTIVES AND AcllviTIES Coventry Diocesan Board of Finance ￿Mited (the DBFI aims to promote, facilitate and a5SlSt with the work and purposes of the Church of England for the advancement of the Chrlstlan falth in the Diocese of Coventry and elsewhere. The mi￿1¢n purpose of the Di0￿Se of Coventry is °wor5hipping God, making new di5ciple5 and transformlng communltles., Blshop Christopherfs wsion for the Diocese is that, 'as bearers of the Ilfe of God wlth restored health. now 8rowth and renewed relatlonshlps. we will be the sharers of Je5u< gospel of Ilfe In a troubled world, To achieve this and associated church growth. the Diocese had already agreed a strategy which reaches Out to all the people of Wa￿ickshire and Coventry in its Mission Purpose through a number of bodies and organi5ations, not jUSt churches. Thi5 integrated strategy reCO￿lSe5 the Individual distinrtiveness of each member of the diccesan family-churches. schools, chaplaincies and cathedral- served and supported by our dlocesan staff, synods, boards and commlttees. tt has Identffied prlorlties, endorsed by the Blshop's Council. which ft>rm the focus for the allocation of diocesan resources includin& people, money and prayer. l. Maklng the gospel known throughout the Dlocese so people become follower5 of Christ. 2. Strengthening the health of churches and organisations acr055 the Diocese in the 8 Essential Qualities identified by NCD (Natural Church Development). 3. Enablin8 the well-bein& development and flourlshlng of clergy and lay people across the DI0￿se. 4. Equipping the whole Diocese for the work of reconciliation. 5. Promoting the life-long Christian learning and education across the Diocese. 6. Deliverring positive communlty transformatlon. In its work towards these objectives the Blshorfs Councll continues to endorse two priority theme5 for particular emphasis,. InC￿a$1ng engagement wrch UK Minority Ethnic/ Global Majority Herttage IUKME/GMHI peoples, and a focus on children's and young people's splrltuallty and dlsclpleship. To fund these activltles, the DBF ralses most of Its Income by advislng Its funding need to Deaneries (the Deanery Share). which Deaneries in turn allocate to parishes Ithe Parish Share). The DBF also receives some Investment and otherlncome. The DBF seeksto maintsin sound finances in order to be ableto support mission and ministry in the Diocese both in the short and in the long term. PublFc benefit The trustees are confident that by promoting the work of the Church of England ir) the Dlocese of Coventry the D8F help5 to promote the whole mission of the Church of England - pastoral. evangelistic, social and ecumenlcal both In the Dlocese as a whole and in its individual parishes, and that in doing so provldes a benefrc to the public bv- COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTOR5, REPORT for the year ended 31 December 2022 Providin8 facilities for public V￿rShip, pastoral care, and spiritual, moral, and intellertual development. both for tts members and for anyor* who wishes to benefit from what the Church offers. Promoting Christian values and service by members of the Church in arml to thelr communltles, to the benefit of individuals and society as a whole. The trustees confirm that they have referred to the guidance contsined in the Charity Commisslon's general guidance on public benefit when reviewing the DBF'S aims and objettives and in planning future activities. 1.2 PRINCIPAL RISKS The DBF operates a comprehensive system of risk management. with a strategic risk reglster reviewed three times a year by the leadership team and the Audit & Risk Committee. The trustees undertake an annual horlzon scannlng prO￿s5 to conslder the rlsks to the organisatlon, followlng which the register is reviewed and upéated to take account of new and emerging risks. The major rlsks Identlfled by the DBF'S trustees In 2022 and the measures In place to mitigate and manage them are: Short-medlum term Impacts arlslng from changes wlthln flnance team and flnanclal systems This risk reflects the impatt that the move from Exchequer to XLed8er has created. recognislng that the lack of a clear projert plan for the transition ha5 created ongoing dlfflculties. The risk also reflects a widescale change of personnel within the finance team and the subsequent loss of knowledge resulting from the lack of handover. The finance team have also suffered from sickness absence through the year meanlng that they have not been able to operate at full capacity. There has been an impact on many areas of the DBF'S operations including supplier payments and provision of accurate and timely financial data, as well as reputstional damage and damage to relationships with key partners includingthe Cathedral and Together for Change ITfCI. The DBF seeks to mitigate this risk by providing additional resource and capaaty. Thls has Included an interim Directcr of Finance, temporary Management Accountants and additional Finance Assistants. There has been an Increase In communlcatlon between the DBF, Cathedral and Tfc, as well as increased comrnunication between DBF departments in particular finance and IT. Lessons learned from the transltion process will be reviewed when the move is complete, to help avoid similar issues occurring again. Risks to the lon8-lerm finan¢lal sustalnablllty of the or8anlsatlon This risk reflects the potential impart of parishes failing to pay parish share at agreed leve15 and of investment returns not being in line with the objectives of the investment policy. The risk was impacted during 2022 by the econcrnic and political climate including the ongoing c05t of living crisis, increasing inflation. the continuing effect of Brexit and the war in Ukraine. In particular the large in¢rease5 in energy costs are causlrvd difficulties for many parishes and impacting theirabilityto cover parish share at previously agreed levels, with a subsequent impatt on the DBF'S income. The DBF seeks to mitigate thls risk by worklng wlth deane￿eS to ensure that local contexts and affordability are taken into account when parish share leve15 are agreed. Area Deans are encouraged to communicate with the DBF when potential issues first arise, to allow constructive conversation5 to take pla¢e. A Generous Giving Advisor will be appointed in 2023 to assist parlshes to look at stewardship. Support with energy costs wa5 made avallable to PCCS (via funding from the Church Commissionersl. The Investment SulFCommlttee11SCI and Glebe Committee meet regularly to review the performance of investment assets and are in regular contatt with ccL￿ The Diocesan Finance Group IDFGI and ISC review the proposed use of Unapplied Total Return IUTRI before the recommendatlons are put to synod, helplng to ensure that the DBF'S assets are utilised in a 5UStainable manner. COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS. REPORT for the year ended 31 December 2022 A fallwe to dellver stratsgi¢ obieciives Thls rlsk reflects the potential Impact on church health and growth of a fallure to deliver strategic outcomes and objectives. It also reflects the potential destabilising impact of p¢)orly understood or implemented strategy, Includlng the impact on core functlons as well as project outcomes. The DBF seeks to mitigate this risk by ensuring there is robust governance and oversight of strategy. Steering groups are in place for key projerts (those funded bythe Strategit Development Fund- SDFI. RegLÈlar revlews of progress are undertaken by Blshop's Core stsff Team IBCSTI. Bishop's Strategy Integration Group IBSIGI and Bishop's Council, wf(h assistance from key staff including the Programme Manager and Dirertor of Communlcatlons. Durlng 2022 the DBF trustees approved a revlsed strateglc framework and an annual cycle of listenin& reviewin& budgeting and approving. This will further help to ensure that strategy 15 coherently embedded into the DBF decision-makin8 and review pro￿55. An absence of tnths. key stsff or advisers Thi5 risk reflert5 the potential impact of on Insufficlent number of suftable trustees, key staff members of advisers. A lack of such individuals has the potential to cause disruption to governance and service delivery and also to result in the loss of valuable organisational knowledge. The DBF Seeks to mitigate this iisk by regular review of committee and board vacarKies and an active recruitment process to fill such vacancies. Role descrlptlons are circulated as part of the communicatlon of each vacancy. Potentlal Diocesan Synod and 8ishop's Council members declare thelr ellglbility in line with the Charlty Commlsslon requlrements. On election. trustee Infomiation is updated on the Charity Commission and Companies House websites. An induction guide is circulated to the newly elected Diocesan Synod members, outlining the strurture of the diocese, the responsibilities of the various committees and an overvlew of diocesan strategy. Blshop's Councll members Itrusteesl are elected by and from Diocesan Synod. The indurtion guide is updated during each triennial elertion. A redesign of the induttlon guide is planned as part of the wide-scale governan￿ review which will begin in 2023. It is antlcipated that the induction guide wlll form part of the Governance Handbook which will be developed during the review. This will be available for the 2024 triennial elertions. Appointment of external adviser5 is also regularly reviewed and plans put in place to anticipate contract end dates, upcoming retirements, etc. Skills audits are undertaken across committees Employee absence and vacancy levels are monitored and Steps tsken to cover absence where necessary leg. long-term Sickness or parental leave). Business continuity plans are in place for each department outlinir)g key tasks and methods of cover in case of absence. In-house HR expertise enables an efficient recrultment processto fill employee vatanaes. An increased focus on employee wellbeing 15 helplng to increase employee retention. A fallurÈ to work towards the Net Zero 2030 target This risk reflectsthe potential impactof the diocese failingto make progresstowardsthe target. set by General Synod, of moving to net zero carbon by 2030. There is a poterrtial finanaal risk, not least the costof offsetting a high residual carbon footprint should reduction5 not be made. There is a150 a reputational rlsk If the D8F is seen to be out of step with worshippers and wider society on the need for action. The DBF seek5 to mitigate this risk with a rarEe of measures, overseen by the Net Zero Steering Group which is chaired bythe Diocesan Environment Officer and includes senior leadership representstion. Emissions data Is actively measured and rewewed across all in-scope areas Ichurches, schools, clergy housin& offices, work- related travell and a detsiled action plan is being developed which will build on the net zero strategy adopted by 81shop's Council in July 2021. Communication and education on environmenLIl issues is being developed and rolled OUL Includlng Lent and dlsclpleshlp courses. alongside the ongoing promotion of the Eco Church scheme. COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS. REPORT for the year ended 31 December 2022 A fallure In Safe2uardl This risk reflects the potential impact of a serlous fallure In safeguardlng. The DBF regards protectlng the health. wellbelng and human rlghts of Indlviduals. especially ¢hlldren. young people and vulnerable adults, a5 an absolute priority. To mitigate the risk of a serlous safeguarding failure the DBF ha5 a rigorous safeguarding policy and management prO￿s$ in place, backed by a Safeguarding training strategy which includes senbr leadershlp training. A dashboard has been provided free of charge to all parishe5 to aid them in the management of their own saftguarding requirements. The Dlocesan Safeguarding Scrutlny Group IDSSGI provides external oversight and scrutiny. in line with national guidan￿. Recommendationsfrom the Past Cases Review 2 IPCR21 are being progressed. An annual safeguarding report is prepared for Bishop's Council and Diocesan Synod review, with the opportunlty for questions to be put to the Diocesan Safeguardlng Advlser. Additional capacity has been provided within the Safeguarding team to meet increased demand. 1.3 ACHIEVEMENTS AND PERFORMANCE Restored Health. as we worship God who heals us Caring for our churches In 2022 we launched a sutvey to consider how 'at risk, each church building Is In terms of its sustainability. and identify the particular pressure polnts that are the slgnlfleant challenges. It formed the first stage of understanding the specific issues faced locally by PCC5. which will contrlbute to and inform the development of an effective church building strategy in the DI0￿e. The data will a150 provide eviden￿ for budget request and grant applications Ito external fundersl aimed at testin8 and impending new ideas and fund resources to support the strategyj as well as celebrating and sharing knowledge of successful models of care, creative reuse. community engagement and partnership working. The alm Is to Identlfy sustalnability of church buildings in the Diocese and develop strategies to better care for and use our church buildings, and support our PCCS. The Church building Survey was sent out to all churches in Fosse Deanery In November, who are attln8 as a pllot deanery for this project. During 2022. the total value of grants awarded to projects in the Diocese wa5 £713k, up from £262k in 2021. This is, in part due to the awarding of two large Lottery funded applications to St Marfs Wanvick. and St Ni¢holas Willoughby. Impressively. these figure5 reflect a 90% approval rate based on value Ithe fundraisers, industry average is c. 25%). This illustrates the hard work and dedication of the PCtr5 commitment to fundraising for church projects, and the invaluable 5UPPOrt provided by the Church Buildings Fundlng Support Officer. Another key highlight ha5 been at St Catherlne's Stoke Aldermoor and the projertdevelopment and fvndraising forthe £IIOk communitygarden project, COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIREcfoRS' REPORT for the year ended 31 December 2022 A new exten51on for All Sainvs Church, Burton HastinES The thurch dates back to the 14th century and is listed Grade Il* The ￿lIage has r)0 publlc house, shop5 or a vllla8e hall meanlng that the church Is the only public building in the parlsh. It had no tollet facllities, ablllty to safely serve refreshments, or even rnains water. Back in 2015 the PCC suggested that an exten51on on the North slde of the church. ac￿SSed through a now blocked up North door would be the best way to meet their needs. Plannlng Permlsslon was granted in 2016, followed by Faculty consent in 2017. One of the biggest obstacles to the project was raising the funds to finance it. The PCC worked exceptionally hard on local fundra15ing and external Brant appllcations ond eventually succeeded, wlth the 5UPPOrt of Andy Duncan, the Church Building Funding Support Officer. The Coronavirus pandemic caused some delays to the construction. but the extenslon was finally completed In early 2022. It was formally blessed and dedicated by Bishop John In June. Slnce it ha5 been completed, the church has held numerous events including a community quiz nighL a coffee morning, and it was also the focus for the vllla8e Jubllee celebratlons. Anne Dickinson, Churchwarden, reports that the whole community made suggestions for how the church could be used, Including for art classes, fllm nights, photography club5. and craft workshops amon8St a whole host of other things. The church's peaceful locatlon also ensures that it can remaln a quiet place for people to recharge thelr batteries and connect with God. We look forward to seeing how their story progresses in the comin8 yearsl St Paul's Leamlngton celebrates one year of Its wellbeing café Following concern5 in the media about the increasing number of people SLrfferlng mental health problems as a result of the COVID pandemic, the vicar of St Paul's, the Revd Jonathan Jee, mentloned at the 2021 Annual Parochlal Church Meeting that he wanted to set up a Wellbeing Café. The Church felt God's nudge that this would be somethin8 that they would like to get involved In. After much prayer and recruiting an ex￿lIent team they opened the doors to their Renew Wellbelng café on 17th January 2022. Open on Monday mornings. the café provides a warm welcoming space where people can be themselves wlthout pressure on anyone to do anything they don't want. People can drop in for a tea or coffee. chat. play board games, do a craft or sit in a quiet space. COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS, REPORT for the year ended 31 December 2022 Warm hub5 set up across the dlocese Supported by funding from the central church and wlth addltlonal fundralslng through Togetherft>rChange {TfCI our churches ￿SpOnded to the c05t of living crisis by Setting up or extendlng thelr warm spaces to offer somewhere for people to go to in the winter months. St Peterfs, Hlllflelds set up a warm space in the main reception area of the church uslng comfy chairs and tables to create ? wami Spa￿ of welcome for all members of the Hillfields community. St Frands of Asslsl, Radford had actlvltles every day of the v*ek Includlng.. a community cafe Se￿ing hot drinks, breakfast and lunch; a foodbank; a Social Supermarket; community support; frlendship groups: free computer use and wi-fi. St Peterfs. Wellesbourne used their Wednesday Welcome in the Church Centre to offer teajcoffee wlth homemade cake or biscuits from 10.30 to 12 and then soup, roll, butter/mar8arlne and cheese from 12 to Ipm. St John the Dlvlne. Wlllenhall. offered stay & play groups with tea &toast, small group bre¥kfastof families, women's 8roup with breakfast and a Friday brunch drop in. These are just a few of the many examples of our churches, response. Mlnlstry and misslon In our rural communlties In 2022. Bishop John announced that the Reverend Mortin Davies had been appolnted as Rural Life Officer and the Reverend Dan Corlett as A5SiStsnt Rural Life Officer. Their work wlll encourdge arKI enable the rural ehurch to engage wlth wral and a8ricultural155ue5 as part of Its misslon, minlstry, growth and discipleship. support organlsatlons and Indlviduals Sn rural and agricultural settlngs and sertors to access spirttual support at tlmes of personal or corporate need, and Identify the mlssion and ministry needs and opportunities of the rural and agricultural communitles In the DI0￿$e and advise and enable colleagues to address these. On his 4pF￿1ntrnent. Martin said "Hoving been afomierfor overfortyyears, lam veryoware of the constont struggles and pressures thot theforming ond rurol Communltlesface In today's ever-changing world. l am exoted to be worklnq wlth Don Corlett with h15 Vostexperience of envlronmental ond ruml issues." Fornierly the Chief Executlve of Farmlng and Countryslde Edueatlon. Dan said "I'm looking fvrward to woiklng wlth Martln ond orn pleosed to be continuing to work alongside the agrlculturnl and ruml communlties, together with myrole helping to resource the ruml church ot theAlce5ter Misslon Hub." New Growth, as we make new disciples Growing new worshipping communftles Part of our growth strategy Is the programme to grow four urban churches part funded by a £1.25m grant from the Strate8ic Development Fund ISDFI which was awarded in October 2021. The grant requlred further detalled plannlng to be submitted before the Di0￿Se could access these fvnds and the new Programme Managerworked with each ofthe church leadersto complete the necessarydocumentation. Glven the tlme since the original project proposal it was requested to extend the funding to 2027 from the original date of io COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS. REPORT for the year ended 31 December 2022 2026 and the project budget was adjusted accordingly wittrK*Ut the need for any addftlonal investment- this wa5 approved by both the SDF and Coventry Di0￿53n Synod. Significant effort also went into the reportlng and measurement framework that the 5DF required, rK>t least to enable us to be ready for the first formal SDF review of the Programme which took place in early Jan 2023 and will subsequently be held annually. Of course, the real work takes place in the parishe5 and while two of the four leaders had been licensed in 2021 forthe most part the recruitment of the lay stsff took place durlng 2022 and it wasn't untll the autumn of 2022 that all projects were up and runnlng. The four churches are all very different and have very different mission plans but share very similar goals which include training new leaders by providing placements for Mlsslon Apprentlces as well as numerlcal growth of thlldren and adults. y the end of the year the progress made was already encouraging. In file Hill the parish of St 0swal(fs, which 15 a traditionalist AngI￿catholIc church in an urban priority area, had made huge strides rebuilding relationships with the local community. Both St Peterfs Hillflelds and Rlsen Christ Wyken. which were °planted° from St Marvs Resource Church. started a second Sunday servlce. The fourth church plant Is in Bedworth where the aim is to start new congregations from scratch and by the end of the year the preparations were well underway for the launch of Messy Church which stsrted in Jan 2023. In addition to the four urban plants, slx Mlsslon hubs We￿ delegated by 8ishop Christopher In early 2021 a5 Part of the growth strategy. In 2022 the focus wa5 on recruitment to the kN)sts of Assistant Minister. setting up the flight plans and rhythms of meeting and accountability. These rhythms are now set up. Five out of the 51x mlsslon hubs have now appointed Associate Leaders, and the last hub has InteNlews upcoming. Early hub activity has included leader resourcing events at the Leomington Hub, a good re5pon5e to connectlons between rural churches, and the early stages of developing relationshlp between St Laurence'5 hub and St Paul's Foleshill arKI St Thomas Longford. In 2021 Coventry partnered wlth St Marks In worklng to ¢￿ate a plpeline for lay leader tralnlng. 2022 was the end of academic year l and the beginning of year 2 of this pilot scheme. The programme 15 based on the principles of investing in students, heads, hands, and heèrts, building a centre for high quality teaching and learning at the heart of the Dlocese. St Marks Academy has seen steady growth in student numbers and 15 currently training a cohort of 11 leaders. Particularly encouraging is a strong ethnic and gender dlversity- Thls prolert Is showlng strong early signs of developing a leadership pipeline to resource urban plants and other churches in the Diocese. As well as the four urban plants, St Marks Academy has worked with St Paul's, Leamington and St Martin's, Finham and there is potential to develop these partnershlps wlder across the Dlocese. Growlng Leader5 During 2022, following the arrival of Rob Harrison as Director of Ministry & Leadership, a dlocesan framework for lay mlnlstry has been researched. developed and Implemented. The Lay Mini5trie5 Fromework pla￿5 parish clergy at the heart of a drive to release, recognise and resource the ministries of Lay People within and beyond our churches. To resource this wmmitment to recogni5e Lay Mlnlstry, we have Introduced 'Commissionln¥ as a level of reeognltion that Iles between Informal 'permission' and legal 'liCensin￿, Lay ministers can be commissioned locally, for an agreed period of time. to a specific ministry. As part of our commitment to resource the ministries of our lay leaders. the Ministry & Leadership team has redesigned the 8ishop's Certiflcate in Discipleship & Ministry IBCDM) to offer È set of role-specific learningltraining pathways. 18ishop's Certificates in: Preachin& Leading Worship, Communlty Mlnistry. Youth & Children's Work. Bereavement Ministry. Pioneering & Evangelism, and Spiritual k¢ompaniment.I These pathways will be developed and opened during 2023. During 2022 our Director of Ordinands (Mark Norrisl and New Ministries Lead (Susan Bowden-Pi¢kstockl have restrurtured the pro￿55e5 for discerning vocation5 and providing initial ministerial development for li COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS. REPORT for the year ended 31 December 2022 curates. At the start of the yearwe had more people exploring vocations to ordination than we had capacity to forrnally discern. Mark has restructured the dlocese's dlscernment programme to meet the demands of the new national process, with 32 people partlclpating In the autumn group stage. Susan has redeslgned the tralning and formation programme for wrates wlthln the dlocese. The new programme provides high quality trainin& learning and formation. tallored to the needs of each cohort and engagln8 the expertlse within the diocese. Durlng 2022, the Dirertor of Ministry & Leadership. Rob Harrlson. explored and developed a new structure for continuing ministerial development ICMDI. The new programme. which was trialled durlng the autumn term, offers focussed trainln& learning and formation for both clergy and lay leaders In key areas of their minlstry. The programme has been designed to honour and engage the ski115 and expertise of diocesan clergy and lI￿nse￿ lay leader5, to redu￿ isolation. and to encourage mutual support. In addltion to a termly pro8ramme of CMD events, we have introduced a pattern of mutual supervlslon for clergy, and a process of need-focussed mentoring. ',1111 Ill Renewed Relationships. as we transform communities Worklng wlth refugees and migrants The Fresh Start proJett, working wlth refugees and mlgrants, has continued to support people with English as a Second Language IESOLI dasses. conversation English Broups and football Ito enable integration and mentsl and physical wellbeing). As a result, workingwith Youth with a Mission IYWAMI and St Peterfs Church in Hillfields, a new One Family Church 5tsrted in January 2021 and has grown to 50-60 people from many dlfferent languages. The service is translated into Farsi, Spanish and French and has been a successful program bringing about communlty cohesion. Helplng students, children and familles In Nuneaton Our charity partner Together for Change Contlnued their transformatrve community worL In particular, the Saints Nuneaton regeneration project recelved £1.8m of Levelling Up fundlng from local and natlonal government funds. This funding will enable the purchase of the bulldin8 and renovatlons for the derelict upstairs hall. thereby bringing in sustainable Income Into the ¢entre. A¢tlvities within the centre involve: 12 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIREcfoRS' REPORT for the year ended 31 December 2022 after school youth work 3 days a week with 50 youn8 people daily. weekly food hamper distributions to mitigate the cost of living crisis for 40 families per week training and educational workshops and actlvltles, free family sUPPQrt activities such as mother and baby sUPPQrt groups and finally warm hub activities supporting the elderly and vulnerable. All of this is done in the Saints café environment, where young people and volunteers are tralned In hospitsllty. Celebratlng Ilfe In the Offchurch Group The Offchurch group 15 made up of five dlfferent villages: Offchurch. Wappenbury, Weston. Hunnlngham and Eathorpe. Over the last few years there has been a deslre to brlng the separate church families together, to be stronger as a single entlty wlth a varlety of ski115 to reach into the local communltFes. So, on the weekend of the 24th and 25th September, the Offchurch group of churches and thelr local communltles 84thered together at Offchurch Vlllage Hall for a celebration of life. The weekend, entltled 'Celebrote Lifel, featured many (Ilfferent activities. events and cornmunlty 8roup5 and attracted people of all age5. On Sunday 25th, Blshop Chrlstopherjolned tor Sunday worship and dedicated a new church kitchen whlch w511 allow the Offchurch group to further reach out to the community. Guests who attended the 'Celebrate Llfe, weekend had a great time. Worklng towards net zero The Dlocesan Environment Group has contlnued Its work to encourage people to tske seriously our God- glven vocatlon to care for the earth. They have been supported by the net zero steering group are co- ordinating work to measure and reduce our carbon footprint. Keyhl¢hliq1￿ Inclthle.. Diocesan staff working with parishes and deanery environmental reps to encourage Submission of 2022 parish energy-use dats to the Energy Footprint Tool (E￿) including an ongoin8 communlcatlons campalgn. Collection of 2022 energy use data from our schools. offices, clergy houslng and In-5cope travel, and input into the Energy Toolkit. Identification of top 20% emitting thurches (based on 2021 EFT). Target churches from wlthln the top 20% will reoive support to develop detailed net zero carbon actlon plans. Promotion of the HeatHack programme (funded by Royal Academy of Engineerln81. Ongoing promotion of free Green Journey energy audits and the Eco Church programme. Revlslon of Church Improvement Fund to Include a Net Zero speclfl¢ grant stream. A tWO-5tsge application process provides technical sUPPOrt to parishes as they prepare appllcatlons. Maximum grant increased from £5k to E25 Energy Performano Certifi¢ates IEPC51 mnducted on all clergy housing* With budget allocated 120231 to engage consultarbt to revlew EPC data and work with Property Team to produce a costed houslng plan and for works on two pllot clergy houses, to act 35 case studles, Commitment from Dlocesan Synod to malntaln dlslnvestment posttlon. 13 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS, REPORT for the year ended 31 December 2022 St George's, Rugby gets solar panels In earlv 2022, the PCC of St George's Church In Rugby installed solar panels on to the roof of the church, one of the first such projects across the dlo¢ese. The solar panels were part of a wider strategy by the PCC to reduce their carbon footprint and seek to reach Net Zero carbon emissions by 2030. IA SUMMARY OF FINANCIAL PERFORMANCE The flnanclal result In 2022 was a deficlt of £921,OW {2021: deficlt £316,IXK)), whith was partly offset by the release of £2,111,00012021: £1,511,Cml of historic fund5. This release was approved by Diocesan Synod In November 2022 t¢ covera reduction in income from Parlsh Share, due to a combination of lower offers from parlshes followed by a lower than expected collection rate during the year. The cost of mission and mlnlstry Increased by Z(D6 to £7.273.(XXI12021'. £6.052,0001 (Note 5b to the Flnandal ststernentsl, wlth expendlture on Interregnum works on parsonages Increasing a5 Costs of building repalrs escalated significantly. Associated with clergy moves are the appointment and retirement ￿sts for dew, which irKreased bv 6% to £185,00012021: £175,C(KJl. The avera8e number of cler8y In post during 2022 Inueased to 116 12021:105} Costs In 5UPPOrt of mlsslon and mlnlstry (Note 5c), increased bv 41% to £3,607.LXI012021: £2,553,OXII, Main￿ due to an Increase in 8rants awarded to parishes, as planned mi55ional artlvlty retumed to pre-pandemlc artivlty- The value of Designated Funds increased to £17,014,C(JO12021: £l6,094,L￿). primarily due to the transfer of a further £51K),OCK) to the Cathedrdl "Endowment" Fund and £141.000 Bur)galow sale held for Diocesan Board of Education IDBEI (Note 16 to the Financlal Ststementsl. Restrlcted Funds at the end of the year amounted to £4,586,IX)012021: £4,205,(XKI. Notsble items within Restrtcted Funds induded the receipt of Capaclty fundlng from the Church Commissioners to help with initial Set up costs of the Strategic Development Fund ISDFI City Church Plant project and provide funding for a Programme Manager and the Dlrector of New Worshipping communities. Lowest Income Community IUNCI funding increased during the The Endowment Funds INote 16 to the Financial Statements) were valued at £70,836.CIJo at the end of the year, {2021: £77.013,0001. The maln movements Included, losses on revaluation of investment assets of £4,525,OC(I Iprioryear 8ain 2021: £5,649.OWI, attuarial movements on the Church of England Clergy Pension scheme of £203,CO)12021: £6,1￿1) and release of £4.540,CW of Endowment Funds of which £2,429,(X)O 12021: £2.136.CrfJOI is investment income, which forms part of the total return on the Diocesan Stipends Fund. Note 18 explains full impart of totsl return on these accounts. 14 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIREcfoRS' REPORT for the year ended 31 December 2022 Prln¢lpal Fund1￿ Sources The principol S0Lbr￿5 offunding in 2022 came from Parish Share £4.8rn, 43% (2021.. £4.9m, 53%), Investment income of £2.541m, 23%12021: £2.247m. 24%). £1.3m, 12%. from Church Commissioners {2021: £0.8m, 9%), and £2.532m. Il%, from other sources12021: £1.361m 14%). Other sources of income include parochial fees from weddings and funerals, rental income Irom the letttng of houses whilst notoccupied by clergyi restricted Income from The King Henry Vlll Endowed Trust. used to meet costs in the Warnlick area, surplus on the sale of Daventry Road and Little Plttem vlcarages and varlous other grants and donations. Parlsh Share Total parish share income received was £4.777m.12021; £4.987m which was a £210,0(Xl redurtion on 2021}. Thls Includes amounts reeelved that related to parish share allocated for premous years. but excluded amounts receNed after the 31 December 2021 cut-off date. Totsl parish share ￿Ceipts amounted to 90% of the allocation12021- 93%). Deaneries Continue to Indi￿te that they are Struggling to meet Parlsh Share allocatlons. No Parlsh Share rellef was given duringthe year. compared to £154,587 in 2021. The Diocese has continued to promote the Parish Giving Scheme, a direct debit scheme that encourages individual church members to revlew their glvlng regularly and also provldes an efficient VRY for parishes to recelve Gfft Ald on gifts recelved. Investn*nt Income Investment income was £2yI,CLIO12021: £2,247,OC#))and derived from both equfcies and Glebe assets. After allowing for Glebe management fees and other Glebe operating costs, net investment income was £2.206.LI)012021.. £1.958.0001. Net investment incomefrom Glebe investment increased to £1.235m during the year as a result of decreased costs of malntalnlng farm dwelllngs and repairs to farm bulldlrw.12021: £914,0c￿}. Other investment income, whlch Include5 Interest and dividends, increased to £1,162,0(NJ12021- £I,089,￿￿1),35a result of Increased interestfrom holdiw in the CCLAdewsit account. In 2022 total retum perfomiance (grossl for investment funds In whlch the DBF is invested was as follows. CCLA'S CBFChurth of England Investment Fund:_9.16%12021: 17.46%) Thi5 is against a benchmark of long term total return of inflation ICPII plus 5% per annum before costs. During the year the OBF no longer invested in the following funds CCL4'5 CBFChurch of England Global Equtty IrKome Fund:12021.. 19.20%) CCLA'S C8F Church of England UK Equity FurKI: {2021: 21.25%) The DBF'S investment objective. with re5pert to amounts available for investment, is to safeguard capitsl values in ￿31 terms over the long tem and to provide real growth in net income, whllst complying with the Church of England Ethlcal Investment Policy. Investments are prlnclpally held in Glebe properties and in investment funds. The investment funds are managed by CCL4 Investment Management Llmlted aThJ are dlverslfled funds for charities, invested malnly In equities, but also in r￿ed interest securities, property and other assets. There are no holdings In Fossll Fuels. Glebe Investment propertles comprise agricultural. commerdal and residential land and bulldln8S. The totsl value of investments shown on the Balar￿ Sheet at 31 Decernber 2022 was £68.8 mllllon12021: £76.4 mllllon) of whld) £64.6 mlllion was permanent endowment (Note 12 and Note 161. 15 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS. REPORT for the year ended 31 December 2022 Followingthe approval of a Totsl Return approach to Investments in the Diocesan Stfpend5 Fund. and a further subsequent disCU55ion at Bishop'5 Council. the tru5tee5 agreed that historic unapplied return of £2,111,C(10 (2021: £1.5ml, plu5 the income investment returns that would ordinarily be recognised in the 2021 accounts if total retum had not been adopted, would be recognised as income in the 2022accounts. Stipendiaryder8y The full time equivalent IFTEI number of office holders in the Diocese who were stipendlary cler8y or licensed lay workers In 2022 was 11612021: 1051, which includes two Archdeacons. The average number of curates was 2￿512021. 211 reflecting the diocese'5 comrnitment to increase the intake of clergy over the comlng years. H￿efor Outyaeryy. se1F.5knpptyti￿ Ministry andvolunteers Whilst acknowledging that many of our self-SUPPOrting ministers are office holders and livir)g in their own houses, there are Offi￿ holders that the DBF provide w￿h house& In 2022 there were 712021: 91. It cannot be underestimated that the attivities of the Church of England across the Diocese of Coventry depend hugely on the generosity of our retired clergy. self-supporting ministers, Reader5 and lay mlnlsters. The value of this time. to the Diocese as a whole and in particular to the DBF. ¢annot be quantified and recognised in the financial ststements. The DBF is grateful to all those vthose contribution Is essential to the mission of the whole Diocese. All stipendiary clergy in the Diocese, some clergy employed in central diocesan posts and some licensed lay workers are members of the defined benefit Church of England clergy pension scheme. The contribution to this scheme in 2022 was £9.34212021: £10.0311 per full tlme stlpendlary cler8y member. If they are not members of the dergy pension stheme, the DBF'S pemianent stsff are members of the Church Worker5 Penslon Fund. Further detalls of both sthemes are in note 2 to the Financlal Statements. DBF staff employed on temporary or 5hort-terni contracts. who have qualifying eamings or the rlght to opt in, are enrolled in the National Employment Savings Trust INEST-the workplace pension scheme set up bygovernmentl. fte￿r￿s wliry andtheG￿eraI Fund p[￿on attheyearend Thefunds held bythe D8F at 31 December 2022 comprise the following: Endowment funds totalling £70,836,ocKI. Thls amount Includes expendable endowment of £6,217,582 relating to the Parsorba8es Housing Fund and permanent endowments of £64,618.CC¥J. The pemianent endowment includes £63.835.OCQ relating to the Diocesan Stipends Fund of which £40,420,IJ)O 15 unapplied total return. TheTrustees can applythe unapplied totsl return to the Dia￿san Stipends Fund Income AccounL to Use forthe ￿$tricted purpose of payment of clergy 5tipend5, house5 and the management and maintenance of Glebe property. Restrirted Funds totallin8 £4,586,OC(I, to be spent in accordan￿ with the donor's wi5he5. Unrestricted funds of £18,674.Cts), which includes £17.014.C(x) of designated funds that relate substantially to operational properties and are therefo￿ illiquid. The objective of the DBF'S reserves policy is to ensure adequate working capitsl resources. During 2022. the policy was to ensure the General Funé remained within a range equivalent to two and a half to three and a half months, worth of operating costs, as approved by Dlo¢esan Synod for the ensuing year. This policy ha5 been reviewed and ha5 been left unchanged. Dlocesan Synod approved a maxlmum sum to be spent frorn operating funds In 2023 £12.063m 12022 £11.068ml The balance in the General Fund at 31 December 2022 wa5 El.660,TrJO which represents approximately two month5 of planned spending and is therefore belowthe tvJttom of the poli¢ytsrget range. 16 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIREcfoRS' REPORT for the year ended 31 December 2022 1.5 PLANS FOR THE FUTURE and FUTURE COMMtfMENTS In 2022 work commenced on ￿freShing the Whole DI0￿se Strategy and strateglc objettives. With the engagement of Bishop's Council and Diocesan Synod. an annual cycle of li5tenin& planning and approvlngwas developed, and a strategic framewcrk was created to help us work together as a whole dioo5e to achieve Bishop's Christopherfs vlslon of restored health, newgrowth and renewed relatlonshlps. Our Shared Future was formally adopted towards the end of 2022, with the first phase of listening to be launched In early 2023. The strategtc framework Identlfies the support we have commltted to g￿Ing to our parishe5 and nine key Strategic commitments, which collectively provlde a framework for the whole dI0￿San familyto come togetherto delNer our mission purpose and achleve the Blshop's vision over the eomlngyears. Core Support Sofeguardlng- Provldlng safeguarding tralnlng and advlce, managlng casework: al￿ helping parlshes to respond to COn￿rn$ and allegations nance- Paying grants, stipends and pensions: managing investments,. adminlstering parish share: and produ¢ln8 budgets, reports and accounts Houslng- Maintsinln8 and improvin8 our vicorages and other cler8y houses Mlnisty- Releaslng. recognlslng and ￿SourC[n8 lay minlstry: dlKemln8 vocations; tralnlr ordlnands and curate5.' managing cler8y appointments. providing continuing minlsterlal development: provlding HR support Church Buildings-Advisin8 about the care and development of churches Ilndudlng the DAC): helping to find grants Communication5- Sharing news. irrformation and resource5 Wlth parishes; maintainin8 the dioce5aD website. Equlp Hub and social media channels Governance- Arranging meetlngs and provldlng brleflng papers for Dlocesan Synod, Bishop's Council. and statutory diocesan committees Focused Strateglc Support Heokhy communities- meeting the social, spiritual and practical needs of those we serve Healthy churches- promotlng the essentlal quallties of Church health Healthypeople- nurturing the wellbeing of everyone who serves the work of the diocese New worshlpplng communltles- reachlng out to those who are mlssing Chlldren, younqpeople andfvmllies- invitlng them to come on a falth journey Growing leader5- enabling and equippin8 both new and Current leaders Lovlng one another- being a reconciling presen￿ in the heart of our communltles Renewinq qenemsity- supporting others with our time, talents and money Renewing the environment- restoring environmental balance. both locally and globally In 2023, the strategic framework artlculates the V￿rk V￿ will be undertaklng In each of the nine kwi commttments. Progress will be monltored throu8h an annual plan whlch will be reported to the Bishop's Strategy Integration Group and Bishop's Council. 17 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS. REPORT for the year ended 31 December 2022 SECTION 2: GOVERNANCE REPORT 2.1 COMPANY LEGAL STATUS The DBF was incorporated on 12 Ortober 1936 as a tharitsble company {No. 3194821 limited by membership guarantees and its governing documents are the Memorandum and Articles of Association. The DBF is registered with the Charity Commission (No. 247828}. The DBF has also been designated as the Parsonages Board for the DI0￿Se of Coventry under t1￿ Repalr of 8enefice Bulldlngs Measure 1972. 2.2 DIOCESAN SYNOD AND DBF MEMBERSHIP The Diocese Is Eoverned In accordance wlth the Synodlcal Government Measure 1969. under which its governing body Is the Diocesan Synod. Every Diocesan Synod member Is a member ofthe DBFfor companv law purposes and has a personal liability limited to £1 under their guarantee as company members in the event of it being wound up. The Dlocesan Synod Is made up of three Houses:. Iou5e of Bishops: the Bishop of Coventry (President of the DI0￿$an Synod) and the Bishop of Warwick. House of Clerg￿. 44 members, including the Chair of the House and seven ex-officio members {the Dean of Coventry, two Archdeacons, the Chair of the Di0￿san Advisory Committee and the three diocesan clergy General Synod members). The remainder were elected by the houses of tlerg¥ of Deanery Synods. House of Laity- 54 members, including the Chair of the House and six ex￿ffici0 members (the Diocesan Chancellor, the Chalr of the Board of Finance. the Chalr of the Board of Education and the three diocesan lay General Synod members. One member wa5 nominated by the Bishop of Coventry (p￿s1dent of the Mothers. Union). The remainder were elected by the houses of laity of Deanery Synods. Elected and nominated members of the Dlocesan Synod hold office for a temi of three years. The current term of office runs from l August 2021 to 31 July 2024. The Diocesan Synod normally meets three times a year and its functions are to- Conslder matters affettlng the Church of England In the Dlocese Att a5 a forum f¢r debate of Christian opinion on rnatter5 of religious or public interest Advlse the Blshop where requested Deal with matter5 referred by General Synod Consider the annual accounts of the DBF Conslder and approve the D8F's annual budget Diocesan Synod governs itself through Standing Orders, which were approved by Diocesan Synod on 19 July 2000. and amended on 14 March 2009. Through the Standing Orders. many of Diocesan Synod's re5pon5ibilities have been delegated to it5 Standin8 Committee, the Bishop'5 Council. 13 BISHOWS COUNCIL AND THE TRUSTEES AND DIRECTORS OF THE DBF The 8ishop's Council Is the senior commlttee of the Diocese. Under the Stsnding Orders of the Diocesan Synod its members have a number of concurrent roles. They are the members of the Standing Committee of Diocesan Synod, the trustees of the Charity for the purposes of charity law, the directors of the DBF for the purwses of company law, and the members of the Di¢xesan Misslon and Pastoral Commlttee. As the Stsnding Committee of the Diocesèn Synod, the Bishop's Council is responsible for: Planning the business of the Synod and circulatlng the agenda and supporting papers for Its sessions this function is delegated to the Business Committee. 18 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS, REPORT for the year ended 31 December 2022 Initiating proposa15 for action by the Synod and advising it on rnatters of policy. Advising the President (the Diocesan Bishop) on any matter. Transacting the business of the Synod when not in session. Appoints member5 of committees and nominating individuals for election to committees. Carrying out such functions as the Synod may delegate to it. As the Dlo¢esan Mission and Pastoral Committee IDMPC) and in consultatlon wlth the eleven Deanery Mission and Pastoral Committees. the Bishop's Council- Advises the Bishop of Coventry on the deployment of cler8y Within the Diocese. Conslders and authorlses pastoral schemes. As the Trustees and Directors of the DBF, the 81s1￿p,$ Council.. Takes responsibility for the activities of the DBF, including financial accountability as set out below. Manage5 funds and property held centrally in the Di0￿se. Prepares an annual budget for consideration and approval by Dlocesan Synod, wlth estimates of expenditure and the income needed to finance that expenditure. Monitors income and expenditure against estimate5 in the budget approved by Di0￿53n Synod. Advises the Diocesan Synod on financial aspects of its policies and on any other matters referred to Flnanclal accountsblllty responslbllfties of Blshop's Councll members as trustees and dlreLtor5 The trustees of the DBF, who are als0 the directors of the DBF for the purposes of company law, a resp)nslble for preparing the Direttors. and Trustees, Report and the financlal statements in accordance with appllcable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financlal statements for eath financial year whsch give a true and fair view of the state of affairs of the charitable company and of the incoming resources and appllcatlon of resour￿$. including the income and eXpendi￿re, of the charitsble company for that period. In preparing these financial statements. the trustees are reoulred to: Selert suitable attounting policie5 and then apply them consistently. Observe the methods and kyinciples in the Charities SORP. Make judEments and estimate5 that are reasonable arid prudent. State whether applicable UK Accountlng Standards have been followed, subject to any material departures disdosed and explalned in the financial ststements. Prepare the flnanclal statement5 on the going cOn￿rn b05is unless It Is Inappropriate to presume that the charitable company will continue in business. The tntstees are responslble for keeping proper accounting records that disclose wlth ￿asonable accuracy at any time the financial position of the tharitable company and enable them to ensure that the flnanclal staternents comply with the Companies Act 2006. They are responsible for safeguarding the assets of the charitable company and hence for tsking reasonable steps forthe prevention and detection of fraud and other Irregularities. Theyare also responsible for the Maintenan￿ an(i ir)tegrity of the DBF'S corporate and financial information included on the diocesan website. Legislation in the United Kingdom governing the preparation and dissemination of financial ststements may differ from legislation in other jurisdictions. 19 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS. REPORT for the year ended 31 December 2022 1embershlp otthe BIsho￿S c￿ncIl The membershlp ofthe Bishop's Council is comprbsed of a maximum of 32 members as follows: 8 ex offiuo members 15 members elerted by the Diocesan Synod (seven clergy and eight lay. in both cases wlth a minimum oftwo from each archdeaconryl up to 6 nominated members (three may be nominated by the 8i5hop of Coventry and one may be nominated by each of the Diocesan Advi50ry Committee, the Par50nages Committee and the Diocesan Board of Education) up to 3 members ccpopted by the Bishop's Council. The Chairofthe DBF, one of the exofficio member50f Bishop's Council, is nominated bythe Blshop ofcoventry and appolnted by Dlocesan Synod. Durlng 2022. the Blshop'5 Council met five times as Bishop's Council and board of trustees and directors. The term of office of the members of Bishop's Council {excluding ex officio members) lasts for three years. Their term will end in 2024, upon the elettion of their successors. During the year and a5 at the date of this report the members of Bishop's Councll were as follows: Ex￿FFICI0 President Bishop of Warwick Archdeacon Pastor Archdeacon Missioner Dean of Coventry Chair of the House of Clergy Chair of the House of Laity Chalr of the DBF The Rt Revd Dr Chrlstopher Cocksworth The Rt Revd John Stroyan The Ven Sue Field The Ven Barry Dugmore The Very Revd John Wlteombe The Revd aaire McArthur Phil Sewards Slmon Danks NOMINATED MEMBERS Nominated by DAC Nominated by Parsonages Onte Nominated by D8E The Revd Peter Walker The Revd Peter Walker Chris Edwards BISHOWS NOMINEES The Revd Kate Massey Emili Lowery ELEcfED CLERGY The Revd Kay Oyer The Revd Alison Evans The Revd Barry Jackson The Revd Jonathan Jee The Revd Stephen Parker The Revd David Poultney-from Ortober2022 The Revd Jo Parker The Revd Stella Bailey- tojune 2022 ELECTED LAITY Chrls Baker Jo King Ogechi Ngemegwai Sue Williams Sarah Mount rim Pollard Marion MacLellan Alex Suffell- to November2022 20 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES. AND DIRECTORS. REPORT for the year ended 31 December 2022 cooiYrED MEMBERS No co-opted members 2.4 COMMIThEE STRUCTURE There are a number of Diocesan committees which advise the DBF: Business Commlttee which considers the content of the agendas for Bishop's Council and the Diocesan Syrbod. Audft and Risk Commlttee which considers the appolntment of the auditor, the audit fee. the nature and scope of the audit, reviews the annual financial statements prior to submission to Bishop's Council and keeps under review the systems of internal control and risk management. Dlocesan Flnance Group IDFG} which monitors the finances of the DBF and advises Blshop's Council on financial matters, in particular the application of the Deanery Share system and matters relating to the Church Fabric Fund. o Investment SuKornmlttee (ISC) which oversees investment Strategy and pollcy. Condltlons of Employment Group {COEG} which deals with the terms and conditions of employmènt, including remuneration, of staff employed by the DBF and annual increases to clergy stipends in line with increase5 in the cost of livin& except the Diocesan Secretary Iwhose tems and conditions of employment, includin8 remuneration. are reviewed by the Chair of the DBF and the Diotesan Bishop). Dlocèsan Advlsory Commltteè for thÈ Care of Churches IDAC) which advises on the repair and improvement of places of worship, their contents and churchyards, with a view to the furtherance of the Church's mlsslon and the protectlon of the natlon's herltage. Net Zero Steerlng Group (NZSG) which oversees the diocesan response to the Church of En￿and target of achieving net zero carbon by 2030. Di¢ycesan Envlronment Group (DEGI which encourages the Diocese in it5 vocation to care for the earth. Dlocesan Mlsslon Fund Commlttee (DMFC) which conslders matters relating to Dlocesan Mlsslon Fund, Church Improvement Fund and Offa House Spirituality Capital grants, making decision5 on grants of up to £I0,C￿0 and recommendations to Bishop's Council for grants above this level. Glebe Comrnittee which oversees the management of Dlocesan Glebe investments, under the powers laid down in a scheme under the Endowments and Glebe Measure 1976 Parsonages Committee which considers policy, repairs and improvements in relation to parsonage houses, under powers laid down in a scheme under the Repalr of Benefice Buildlngs Measure 1972. 2.5 DIOCESAN SECREfARY AND STAFF The Diocesan Secretary serves as the Secretary to Dlocesan 5yn¢)d and Bishop's Council and as Chlef Executive Officer and Company Secretary of the DBF. The Dlocesan Secretsry and her staff carry out the day-to-doy work of the DBF. They consult regularly with the Chair of the DBF and the various diocesan committees. Whilst senior staff have job titles incorporating the word 'Directorf they are not dlrectors of the company for the purposes of company law or trustees of the charlty forthe purposes of charity law. For information relating to Staff headcount and costs, see note 10 to the financial ststements. The Diocesan Secretary was Ruth Marlow untll her retlrement on 28 February 2022. Jacqueline Ladds has been Diocesan Secretary and CEO since her appjintment on 23 May 2022. In 2022 there was one staff member employed under joint working arrangements by the Leicester Diocesan Board of Flnance (company registered number 227087; registered charity number 2491001. These arrangements are regularly reviewed and continue to be an effectlve method generating economies of stale wlthout detriment to the service provided. 21 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRU5TEE5' AND DIREcfoRS' REPORT for the year ended 31 December 2022 2.6 RELATED PARTIES Coventry Dloce5an TTUStee5 IRe*tered) The Coventry Diocesan Trustees {Registeredl. registered charity number 249165. 15 the Diocesan Authority under the Parochial Church Councils IPowersl Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964. The Trust 15 the custodian trustee holding property and funds on behalf of Pcts and the DBF. Coventry Dlocesan Boxd of Educatlon Coventry Dlocesan Board of Educatlon (the DBE- a company reglstered In England and Wale5 no. 3663851 and a re8i5tered charity no. 1091145) is a statutory body established under the Diocesan Boards of Education Measure 1991, responsible to Diocesan Synod. its functions under this measure principally relate to the promotton or as51stance In the promotlon of educatlon in the DI0￿Se. which is consistent wlth the falth and practice of the Church of England and therefore consistent with the objectNes of the DBF. 2.7 OTHER GOVERNANCE MATfERS Charity Govemance Code and Governance Revlew The DBF wlll be undertaklng a governance revlew durlng 2023, to ensure thatthe organlsation has an effective framework in place to continue to fulfil our statutory obligations and enable us to work towards our Identified priorf(ies. The DBF will draw upon the Charity Governance Code during this review, as a tool to support contlnuous Improvement. A G0veMan￿ Handbook wlll be created whlch wlll further develop the training and induction for trustees, committee chairs and committee members. Rlsk management The trustees confirm that the risks to which the DBF is exposed, as identified by the twstees and staff. have been revlewed and that systerns and procedures to manage those and other Identified rlsks have been established and reviewed. The trustees revlew the risk register at least annually and delegate to the DBF leadership team day to day management of the risks the DBF is exposed to. In addition. the Audit & Risk Committee revlew the risk management processes and the rlsk reglsteT at least annually, and reports to the trustees on whether it is satisfied with its findings. Recommendations are made as a result of those findings. The prinupal risks identified are shown in Section 1.2 of this report. Valuatlon of propertles In the flnanclal statements Investment properties are stated in the balance sheet at fair value. All non-investment properties- parsonage houses, operdtional properties, houses for clergy held in Glebe and the diocesan offices are freehold properties and are stated in the balance sheet at cost. In the opinion of the trustees the fair value of these non-investment properties is substantialfy in excess of cost, but the amount of this excess is not economically quantifiab￿. The trustees who were in office on the datÈ of approval of these financial ststements have conflmied. as far as they are aware, that there is no relevant audit information of whlch the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have tsken as trustees and directors in order to make themselves aware of any relevant audit information and to e5tabllsh that It has been communicated to the auditor. A re501utlon to reappolnt CrOV￿ LLP as aLKlitor to the company and to authorise the Board of Directors to flx the auditorfs remuneration will be prokN)sed at the Annual General Meeting. 22 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES, AND DIRECTORS. REPORT for the year ended 31 December 2022 2.8 REFERENCE AND ADMINisfRATIVE D￿All5 Registered & Prinapal Office Telephone Website Diocesan Offices, l Hill Top, Coventry, CVI 5A8 024 7652 1200 W￿￿v.coventry.an81lCan.0rg Compony registrotion number Charity ￿giStrOt10￿ nurnber Componysecretary 319482 (England and Wales) 247828 {Englandl Jacqueline Ladds-from 23 May 2022 Ruth Marlow- to 28 Feb 2022 Registrarond501icitor5 MaryAllanson-to31 Oct2022 Jenny Dymond-from l Nov 2022 tioint reglstrorprior to Nov2022) Rotherham & Co 8 & 9 The Quadrant. Coventry, CVI 2EG Crowe UK LLP Black Country House, Rounds Green Road. Oldbury* 869 2DG Bank of Scotland Pentland House, 8 Lochslde Avenue, Edinburgh, EH12 9DJ Godfrey-Payton 25 High Street, Wan¥ick, CV34 4BB Godfrey-Payton 25 High Street, Warwick. CV34 4BB Eccleslastlcal Insurance Office plc Beaufort House, Brunswick Road, Gloucester. GLI IJZ CCLA Investment Management Ltd Senator House, 85 Queen Vlctoria Street, London. EC4V 4ET Ecclesiastical Investment Management Ltd Beaufort House, Brunswick Road, Gloucester, GLI IJZ Audltor Banker5 Dioceson Surveyors GlebeAgent Insurers Investmentmunogers SEcfioN 3: DIRECTORS, AND TRUSTEES, REPORT APPROVAL This Trustees, and Director￿ Report, including both the Strategic Report and the Governan￿ Rep)rt, Is approved by the trustees, by whose authority r( is signed as below. Mr Slfflon Danks Chair of Coventry Diocesan Board of Finan￿ timtted 12 June 2023 23 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR'S REPORT Independent auditorf5 report to members of Coventry Dlocesan Board of Finance Ltd. Oplnlon We have audited the financial statements of Coventry Diocesan Board of Finance Llmited for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, Includlng a summary of slgnlficant accountlng pollcles. The flnanclal reportlng framework that has been applied in their preparation is applicable law and United Klngdom Accounting Standards, Including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republi¢ of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitsble companVs affairs as at 31 December 2022 and of income and expenditure, for the year then ended; have been properly prepared In accordance wlth United Kingdom General￿ Accepted Accounting Practice; and have been prepared In accordance wlth the requlrements of the Companies Act 21X)6 Basis for opinion We conducted our audit in accordance wlth Internatlonal Standards on Auditin8 (UK) IISAS {UKII and applicable law. Our respon5ibilitie5 under those standards are further described ID the Auditods responsibilities for the audit of the financial ststements section of our report. We are independent of the charitable company in accordance with the ethical requlrements that are relevant to our audit of the financial statements In the UK, Includlng the FRCS Ethlcal Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe thatthe audit evidence we have obtsined is sufficient and appropriate to provide a basi5 for our opinion. Conclusions relating to going concern In audltlng the flnanclal statements, we have concluded that the trustee's use of the going concern basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materlal uncertainties relating to events or condltlons that, Indlvidually or collectively, may cast significant doubt on the charitable company's ablllty to continue as a going concern for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the responslbllltles of the trusteeswith respect to going concern are described in the relevant sections of this report. Other Inforn￿tIOn The tru5tee5 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 ststements and our auditor's rewrt thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our rewrt, we do not express any form of assuran￿ conclusion thereon. Our respon5ibilty 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 materlally mlsstated. If we Identlfy such material Incon5iStencies or apparent materlal misstatements, we are required to determine whether this give5 rise to a material mi55tstement in the financial Statements themselves. If, based on the work we have performed, we conclude that there is material mlsstatement of this other information, we are requlred to report that facL We have nothing to report in this regard. Opinions on other matters prescrlbed by the Companles Act 21x16 In our oplnlon based on the work undertaken in the course of our audit the information given in the tru5tee5' report, which includes the directors. report and the strategic report prepared for the purposes of company law. for the financial year for whlch the financial statements are 24 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR'S REPORT Independent auditorfs report to membeKS of Coventry Di0￿san Board of Finance Ltd. prepared is consistent with the ftnancial 5tatements,' and the strategic report and the dirertors, report included within the trustees, report have been prepared in accordance wlth applScable legal requlrements. Matters on which we are required to report by exception In light of the knowledge and understanding of the charitable company and their envlronment obtsined in the course of the audlt, we have not identif*d material misstatements in the Strategic report orthe dlrectors, port included within the trustees. report, We have nothlng to report in respect of the following matters in relation to whlch the Companies Act 2006 requlres us to report to you Sf, In our opinion.. adequats and woper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns: or certain disclosures of trustees, remuneration specified by law are not made,. or • we have not received all the informatlon and explanatlons we requlre for our audit. Responslbilltl•s of trustees s explalned more fully in the trustee< responsibilities statement set out on page 19. the trustees (who are also the dlrectors of the charltable company for the purposes of company lawl are responslble for the preparation of the finèncial statements and for being satisfied that they give a true and fair view, and for such internal control as thetrustees determlne Is necessary to enable the preparation of flnanclal statements that are free from material misstatement. whether due to fraud or error. In preparing the financlal statements, the trustees are responslble for assesslng the charitable companVs ability to contlnue as a golng concern, disc105ing* a5 applicable, matter5 related to goln8 concern and using the 8olng concern ba515 of accountln8 unless the trustees either intend to liquldate the charitable company or to cease operations, or have no realistlc alternatlve but to do so. Audltorfs responslbllltles for the audlt of the flnafitlal statements Our objectlves are to obtaln reasonable assurance about whether the flnancial statements as a whole a free from material misstatement whether due to fraud orerror, and to Issue an auditorfs reportthat includes our oplnlon. Reasonable assurance Is a hlgh level of assuran￿. but Is not a guarantee that an audit condurted in accordance with ISAS IUKI will always detect a materlal misstatement when It exists. Misstatements can arise from fraud or error and are ¢onsldered material rf, indiwdually or in the aggregate. they could reasonably be expected to In)luence the economlc declslons of users taken on the basi5 of these financial statements. Deta115 of the extent to which the audSt was consSdered capable of detectin8 irre8ularFties, including fraud and non-compliance with laws and regulations are set out below. Afurther description of our responsibilities for the audit of the financial statements is located on the Flnanclal Reportin8 Council's website at: www.frc.or .uk auditorsres nsibilities. Thls descrlptlon forms part of our audltorfs ￿port. Extent to whlch the audlt was consldered capable of detectln8 Irre8ularftles, Indudln8 fraud Irre8ularttles, In¢ludlng fraud. are instances of nOn￿OmPliance with laws and regulations. We identified and assessed the risks of material misstatement of the flnanclal statements from Irregularities, whether due to fraud or error, and dlscussed these between our audit team members. We then de51gned and performed audit Pro￿dureS ￿SponSive to those risks, includinB obtainlng audit evidence sufficlent and appropriate to provide a basis for our opinion. 25 **COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR'S REPORT Independent auditor's report to members of Coventry Diocesan Board of Finance Ltd.** 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, the Charities Act 2011 together with the Charities SORP (FRS 102) 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 key 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 Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over income, 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 non-detection 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 for our audit work, for this report, or for the opinions we have formed. **Kerry Brown** I Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor Black Country House, Rounds Green Road, Oldbury, West Midlands, B69 2DG Date: 30 June 2023 26 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMEKf OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 Notes General De51gnated Resiritted Endowment 2022 Totsl 2021 Totsl Fund ÉLX#)5 fund5 £W05 I￿th £l)(l)s fvnd5 £11 Income and endowment5 from: Donatlons ParSsh Share Church Commissioners Other 8rants and donations Charge5 for tharjtable artivitles Other trading activitles Investments Investments Income Total return allocated to income Release of historic return Surplus on sale of assets Total 4,670 177 43 391 470 107 1,108 4,777 1.285 1,166 391 611 4.987 829 433 354 574 4b 4d 4e 141 4f 18 18 70 2A29 12,4291 12.1111 2,541 2.247 29 iiii 364 11,135 SWI 513 6,912 {iiiii 9,424 Expendlture on: Raising funds Charitable activities Mission and ministry Support for mi55ion and ministry Contributions to Archbishop's Council Dl¢xesan Board of Education Other Total 5a 513 5b 3A80 2277 508 155 6.OS2 2.553 467 187 1.253 3.607 155 sf iii 6.729 5,047 12.056 9,740 r4•t Income before Investment gains (9081 436 {2,3141 (9211 13161 Net ￿1Th$ on Inve￿Ments. Net Ilosses}18alns on revaluatlon Surplus on sale of investmerrt5 12 1151 11621 (4,064) I￿25) 5,649 138 Net Income 11,192) 421 1,703 (6,378) 15,d46) 5.471 Transfers bètween funds 19 499 liJ221 Other recognlsed galns: Actuarial gains on defined beneflt pension schèrnè (61 Net movgment In fund5 1367) 920 381 1*177) 5.2431 5.465 Reconclliation of funds Funds at l January Net rnovement in fvnds Funds * 31 December 16 16.094 920 17,014 77m3 16,177) 70.836 99339 IS2431 93,874 5,465 93,339 1367) 381 16 27 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL AcfiviTIES for the year ended 31 December 2022 Tt>tsl 2021 Ttitsl Total incorne Total expendlture 15,246 11,853 10,935 9.493 1,442 5,649 7,091 12031 6,888 Net 8ains on investments 14tt IMomel(deficlt) for the year belwe translers Transfer to endowment funds N•t Inwmelldefkltl forthe aft•r tr4nsf•rs I4￿25> (3.1321 13.1301 The Income and expendlture account Is derf¥ed from the Statement of Flnanclal Actlvltles wlth movements In endowment funds excluded to comply wkh company law. All Income and expendlture15 derlved from continulng acti￿tIeS. 28 ## **COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022** |**FIXED ASSETS**
**Tangible fixed assets**
**Fixed asset investments**
**CURRENT ASSETS**
**Debtors**
**Cash and cash equivalents**
**CURRENT LIABILITIES**
**Creditors: amounts falling due within one year**
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**Creditors: amounts falling due after more than one year**
**NET ASSETS**
**FUNDS**
**Unrestricted funds:**
**General Fund**
**Designated funds**
**Restricted funds**
**Endowment funds**
**TOTAL FUNDS**
**_Notes_**
**_11_**
**_12_**
**_13_**
**_14_**
**_15_**
**_20_**
**_16_**
**_16_**
**_16_**
**_16_**|**2022**
**£000s**
**19,244**
**68,825**
**88,069**
**2,632**
**2,156**
**5,096**
**3,952**
**7,728**
**6,108**
**(1,701)**
**{1,352)**
**6,027**
**94,096**
**94,096**
**1,660**
**17,014**
**18,674**
**4,586**
**70,836**
**94,096**|


**2021**
**£000s**
**18,288**
**76,353**
**94,641**
**4,756**| |---|---|---| |||**99,397**
**(58)**
**99,339**
**2,027**
**16,094**
**18,121**
**4,205**
**77,013**| |||**99,339**| The financial statements on pages 27 to 51 were approved by the Board of Directors and authorised for issue on and are signed on its behalf by: L\J ## **Mr Simon Danks** Chair of Coventry Diocesan Board of Finance Limited Date: 12 June 2023 29 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 2022 2021 Cash Ilows from operatln8 artf¥llles: Nel ￿5h ienerated by operatin8 artivitles {L2641 12661 Cash flows from lJwestlTra artlvllle5: Proceeds from Sale of fixed asset properties Purchase of fixed a55ets PrrKeeds from sale of investments Purchase ot Invèstments Nèt tash used by Investlng actlvltles 11.3831 6,792 13,7891 937 937 Chan8e In cash and cash equlvalents In the year Cash and cash equlvalents at l January Cash and cash equlvalents at 31 Decemb&r 1,144 3,952 5.096 671 3,281 3,952 2022 2021 £OOOs Analysls of cash and tash equlyalents at 31 December Cash in hand Short term dep95its Iless than 3 rntlnthsl Totsl cash and cash ¢qulvaleMs 1,378 3,718 5,096 1201 1.751 3,952 2022 2021 £CO)s Recondllatlon of t)et mo¥ement In funds to net cash flow from operatlnl artlvltles Net movements In funds forthe year Adjustments for: Galns on Invexments Profft on sale of flxed asset propertles Depfeclatlon of flxed assets Actuarial (gains)￿oSSeS on defined benefrt pension scheme Llnwlndlng of penslon IlabllSty dI5￿￿nI {Increasè}/Decrease In debtors In¢reasellDecreasel In credltors Met cash generated by operntin8 artivltle5 (52431 5,465 4,525 13641 {5,787 (2031 16} {4761 494 {V641 11441 12661 30 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 Principal accounting poliaes Basls of accountlng The D8F is a charitable company and a publi¢ benefft entlty. Therefore, the finandal statements have been prepared in accordance wlth the 5tètemènt of Recommènded Practl¢e for Charltles IFRS 1021, the Companies Act 2CK16 and the pplicable UK arcounting Standard IFR5 102.. The Financial Reportin8 Standard applicable in the UK and Republic of Irelandl. The finanual staternents have been prepared under the historical ¢05t conventlon except that fixed asset Investments are included atfair value at the balance sheet date. After making enquiries the trustees are sat15fied that the DBF has adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the finanaal staternents on that basis. GoknB Concom The Trustees are sattsfied that the DBF has adequate resour￿ to contlnue to operate as a golng conttm for the fo￿Seeable fvture and have prepared the flnancial statements on that basls. Income Income is included in the Statement of Flnanclal Actlvltles when the tharlty Is legalty entitled to it. recelpt Is probable and the amount to be re¢ognlsed can be quantlfled wlth reasonable accuracy. Parish share Sntorne for the year, or for previou5 years. include amounts recewed up to the 31 December. IncomefromporodJlolAees Income frorn parochlal fees is accounted for when recelved. Grnnts (Yecefvablej Grant income is accounted for when the formal offer of funding is communicated in writin& any condmons related to the entltlement have been met, recelptls probable and the arnount can be measured reliably. I￿n￿lIonS legg(ie5 undsimilgrincome Income from legacies is recognlsed when the DBF has been notffied that there Is a clear Indlcation of the amovnt receiwable. Donations and similai income are accounted for when received. Invest￿￿tIn¢0Me Investment income is accounted forwhen receivable. Investment inrorne from Common Investment Funds managed by CCLA Investment Managers Ltd is considered recelvable when dividends are declared. Deleyredlncome Income is rewnised as deferred where the event or rental period to which the Income relates occurs beyot)d the end of the financial period being reported on. Expendlture Expendlture 15 ac¢ounte(I for on an accruab basls and has been classlfied under headlngs that a88regate similar costs under each category of the Statement of Financial Activities. Gronts {payabkJ Grants payable. are accounted for er(her In full or in part, when authorised, when the award of the grant has been speclfically communlcated io the recipient or when pald if there is no communlcatton to the reCIp￿nt in advance, and when any Condltlon attachln8 to the grant is outside the control of the DBF. Support costs These Costs con$15t of IndSre¢t staff costs, office and IT costs and governance c05t5. They are allocated Thi5 fund was set up in the year for income from The ￿ng Henry Vlll Endowed Trust, Warwick to pay for the ￿51 of a 20$ and 305 developrnent worker for the parlshes of the Warwlck Team and 8udbrooke. Offo CopltolProlects Fund The Trustees and Bishop of Coventry have Set this fund using the proceeds of the Offa House 53le. The capltal and Income from thi5 fund can be used to fund capital projects that support the splrltual development ofthe members of the church In the Diocese of Coventry. Offu SpirituolRefreshmentFund Thi5 fund has been set up using the monies from the sale of Offa House. The capltal and Income from thls fundls avallable to fund projects for children and or adutts which develop their spirituallty. Syrton Orthodox Christion SchoolFunds The Mar Ephraim School is a Syrian Orthodox sChC￿l that oynèd In Bèthlehem in 2006. Donations to the main fund go to SUPPOrtthe school and the 5¢holarshlp Fund is used to provide a bursary for a pupil. These funds were previous￿ managed by Coventry Cathedral and were paid over to the DBF in December 2011. Companionship Link Fund5 These funds are funds rnised to fund speclfic projecrs for the Ilnked dloceses. Retreut Grants Fund Thi5 fund was set up with hjnds donated by the company whlch managed the former retreat house, for retreat grants for lay people who are not licensed and whD are ¢ommunl¢ant members of the Church of England within the Diocese of Coventry. The Reverend George Ggode Fund Thls fund represents money held for training and supportlng the mlnlstry of Readers Sn the Diocese. Ordinotion Troinlng GrontFund This fund is for the block 8rant received fr¢)m the Arthbishop's Council for training ordinands sponsored by the Dlocese. The block grant 15 based on the number and age of ordinands sponsored by the Diocese and can only be used to fund training on InStial Ministerial Education Phase I pathways at acryedited institution5 approved by the Mlnistry Division of the Archbi5hop< Coundl. OC FOnf￿ldBeq￿e5tund Ordination Candidt7te5' Fund These funds enable the DBF to give financ5al support tothose In tralnlng for the Mlnlstry. The OC Bonfield Bequest funds came from the estate of Donald Charte5 Bonfield in 2006 and gjbsequentyears. Archdeocon< D15¢retlonoryFundand rhe Queen Virtorit7 Clergy Fund 4S COVENTRY DIOCESAN BOARD OF FINANCE LIMITED srATEMENT OF FINANCIAL AcfiviTIES for the year ended 31 December 2022 These funds enable the Archdeacons and the Bishop to glve dlscretionary grants to those In Parochial Minlstry in need. Diocest7n stipends FundlncomeAccount This fund consist5 of accumulated income balances subjert to the Diocesan Stipend5 Ftlnd Measure 1953. It re¢elves Income speclflcally for support of stlpends, Sn partlcular Glebe rental Income and Investment income from the Diocesan Stipend5 Fund Capltal A￿ount, andls charged wlth expendlture on cler￿ stlpends and the management and maintenance of Glebe property. The ￿CesS of expendjture over Income Is chargèd to the General Fund. Capacity Funding ThSs fund has been set up as a result of a grant awarded In 2020 from the Church Commissloner5 to fund the firstyear of salary for the ProEramme Manager and the Director of New Worshipping Communities posts which fomi part of the Growth Strate of the Diocese. Deuneryshore SupportFund Thls fvnd has been set up as part of the Deanery Share 5y5tem to a55iSt deaneries that need support to Cover the ￿$t of parochlal mlnlstry posts wlth an allocatlon from the combined parish shares of deanerles that are able to contribute. Wgnvick Clergystipends & Housing Fund This fvnd re￿iVeS income from The Klng Henry Vlll Endowed Trust, Wanwlck to pay for stlpend and housing costs of clergy in the parishes of the Warwick Team and Budbrooke. D￿eS0￿ Board oAEducotion Thi5 fvnd con515t5 of the procpeds from thesale of the 51te bun8alowat St 8artho10rne￿S CofE Academy and wlll be distributed from 2023. Ministry Hardship/PCCEnergy Fund Thls fund represents fundlng recelved from the Church Commlssloners to provlde one off hardship grants to Clergy & employees on lower Income and grants towards PCC to help wlth the signlficant Increase in energy costs. Stmtegir Development Fund This fund represents funding received from the Church Commlssloners to provlde SIK new Mission hubs wlth new assoclate mlnSsters and four ¢Sty chur¢h plants In file Hlll, Bedworth. Wyken and HIIMelds. The followin8 fund Is still attlve but ha5 a zero balance and there has been attivity during the year.. EEBurdsley Bequest These funds were received in 2￿5 and 2006 from the estate of the late Mrs Edith Bardsley, widow of the late Blshop Bardsley. for use by the Coventry Dlocesan Board of Misslon, of whlch the D8F Is the SUC￿$S0r. Both capltal and Income may be used. Endowment Funds Parsonage Houses Fund This fund represents the capitalised value of clergy houslng for whlch the DBF has responsiblllty for maintenance. Di￿esUn Stipend5 Fund CupitulAccount Thts fund representsthe value of pr¢perty and investments held underthe Endowments and Glebe Measure 1976. Historically, these holdln85 were held at parish level for the benefft of individual clergy stipends, but ￿nce rhe Measure they have been managed at Diocesan level for the benefit of all dergy paid for by the D8F. Coventry Diocesan EndowmentFund Th15 fund Is establlshed to produce income applled for the au8mentation of stipends. The assets of the fund are held by the Diocesan Trustees a5 Cljstodian trustees. 46 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 18. Total Return Trustfor Investment £0 UnapplTed Totsl Total At l January 2022 Glft component of the pennanent endowment Accumulated inflation 51nce orlglnal glft Accumulated net transfers brought forward Unapplied totsl return 7A76 {1621 7A76 11621 48.067 70?65 48.067 48,067 21298 Movements in the year Investment return.. property income. dlvldends and Interest Investment return.. realized and unrealized 8ain5 and10sse5 Indexation on base value of Investment 2A29 13,963) 11.S73) 13,107) 2,429 (3,963) &573 L573 IL534) Unapplied total Tetum allocated to income in the year Release of historlc unapplled totsl return 12,4291 {2.1111 {4.540) 12,429) 12,111 14,540 Net movements In the year I￿73 .647) {6,0741 At 31 December 2022 Gift component of thp permanent endowment Accumulated inflation since original gift Accumulated net transfer5 brou8ht forward Un4pplied totsl return 14.984 9049 {1621 14.984 9.049 1162) 40,420 64,291 40.￿0 40,420 23,871 Movements In the year reflect the pastoral order made forthe creation of the new benefice, The Bridge Bènefice, unitin8 the parishes of Westwood and Canley. This led to the transfer of a parsonage. St Stephen's Vicarage. 47 Glebe Close, Canley from Parsonages to Operatlonal Propertie5. 47 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 19. Transfer between funds General D•sbatsd Restrlcted Endowment Fund £lJ)Os furKIs £CWs lunds £O(X)s funds ÉO(¥Js 2022Total Bishop'5 Initlatives, Fund Church Improvement Fund Syrlan Orthodox Christian School Fund Capacity Funding Offa Capltal Prolects Fund M1551on to Lowest Income Communlties Fund Pension deficit contributions paid in year Servin8 Christ projett Hardship Fund Dlocesan Mission Fund LINC DMF Fund LINC Grovrth 5trate8y Cathedral "Endowmenv Fund DID￿San Stipends Fund Income Account (6) 153) 1331 53 33 (21 1631 1831 1211 1361 1300) 1500) 1,412 825 21 36 11,4121 {1,3221 499 {21 20. Analysls of net assets between funds General Deslwwted Restrkted Endowmeth 2022Totsl Fund £IMK)s funds £(￿ funds £O(#)s lunds £IXN>s Funds at 310ecember 2022 are represented by- Tangible fixed assets Fixed asset investments Net current assets Total net assets 53 1156 15491 L660 12,1)44 112 4.858 I7￿14 7,147 65,328 11.639) 70￿36 19244 68.825 6.027 94.096 1.229 3.357 4.586 21. Related party transactlons The Qjventry Ditstesan Board of Education 1.the DBE") 15 a related party as r( is responsible to Diocesan Synod, the mernber5 of which are also the members of the DBF. The DBF provlded the DBE wlth 8rants of £187.C(K$12021.' £159,O)01 In the year towards the costs of the DBE'S ststutory obllgatlons and. In 2021, the costs of academisatlon and the costs of potential new schools development Isee note 71. The Coventry DI0￿$ar￿ Trustees (Registered) l-the CDfi Is a relateil party as It Is the custodian tfU5tee of the Coventry Diocesan Endowment Fund and a residential property- Income received from the Diocesan Trustees durlng the year for the Dlocesan Stlpends Fund Intome Acwunt was.. Coventry Dlocesan Endowment Fund £16,95912021: £21.9871 ResidÈntlal prnperty £2.83112021.' £4,031> Costs incurred by the DBF on behalf of the Dlocesan Trustees were £25,35012021-. £33.8601. These costs were for 5ecretarlal 5UPPOrt, land registrations and audlt fee& To8ether for Chan8e ITFCI is a partner charity supported by the DBF and the Church Urban Fund. Costs incurred by the DBF a5 part of this partnership include the supply of a Chlef Executlve OffKer, offKe and tr provision. and finance and HR servi￿5. A grant of £30,Cm was awarded in the year12021= £30,L￿jl. 48 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 22. Prlor year Statement of Flnancial Activities G¢neral Fund De$lKnated Re5trkted Endowment £(#)05 funds £0005 fwnds £0005 funds £OOOs 2021 T4)tal Income and endowments from: Donations Parish Share Church Commissioners Other grants and donations Charges for charitable activities Other tradln8 actlvttles Investments Investments Income Totèl return allocated to income Release of historic return Total 4.688 162 124 351 574 299 667 309 829 433 354 574 67 2,136 12,136} 11.5111 11,5111 2,247 2,136 1,511 4,969 9N24 EXpendIlu￿ on: RalsinB funds Charltable activities Mlsslon and ministry Support for mission and mlnlstry Contrlbutlon5 to Archbishop's Council Diocesan Board of Educatlon Other Total 234 246 2,347 2,231 467 187 3,705 296 6.052 1553 467 187 26 26 £001 147 9,740 Net Income before Investment ￿Irt$ 126) 11.758) 1316) Netylns on Investments". Net gains/llossesl on revaluation Surplus on sale of Investments Net Incomellexpendlluie) 307 16 176 5,150 138 3￿0 5,649 138 5,471 1.144 Trdnsfets between funds 14081 12751 203 Other recO￿lsed galns/llosses}: Actuarial gains on defined benefit pension schemè N•t m¢)¥ement In funds 161 470 3,727 5065 Recontifiaiion of funds Funds at l January Net movement in funds Funds at 31 December 1.628 399 2,027 15.624 470 16A194 3,336 73,286 3.727 93A74 5,465 99339 4,205 49 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 Prior year Statement of Funds Alljan 2021 £0005 Incom• ExpendSNre Tr¥n5fqrs G•ln5 and At31 Iloss•sl Dectm￿r £iKJ)5 2021 £000s 307 2,027 GENERALFUND 1,628 5,966 15.4661 14081 DESIGNATED FUNDS Operational Properties Fund Cathedral"EndowmenV Fund Bishop's Mission Fund Extrd Mission & Ministry Support Fund Dlocesan Mlssion Fund Church Fabric Fund Church Improvement Fund Bishop of Coventrvs Link Dioceses Fund Lambeth Conference Fund Special Projerts 2020 aeT8y Hollday5 Fund Tot•1 dE$l￿￿ted fi4nds 11,143 11,143 34 106 53 71 77 13) 31 106 35 1181 117} 15} 1321 20 191 125 15,624 20 20 29 16 16 1251 16M94 Totsl unrestrlrted funds 17.252 5,966 15091) 72 323 18,121 REsTricfED FUNDS Pastoral Fund Acceler8 Grants Fund Servin8 Christ Fund M15sion to Lowest Income Communities Fund Church Commi551oners' Mi55ion Fund UNC DMF Fund LINC NCD Fund LINC CGDA Fund LINC Stipends Fund LINC Growth Strategy Pla£es of Peace Fund Offa Capital Projects Fund Offa Splritual Renewal Fund Syrlan Orthodox Christian School Fund SOCS Scholarship Fund Companlonshlp Llnk Funds Retregt Grants Fund The Reverend George Goode Fund Ordination Training Grant Fund DC Bonfield Bequest Archde3cons' Di5cietionary Fund Queen Vlrtorla aergy Fund EE Bard51ey Bequest Dlocesan Stipends Fund Income Account Capaclty Fund Deanery Share Suppo)rt Fund Warwick Cler8y Stipend5 & Housing Fund Total restricted fvnds 1251 19 1551 11821 1661 65 iioi 251 181 13 17 58 171 14 13 131 {541 300 300 283 1,224 li 283 1.435 li 43 18) li} 20 15 1171 121 18 15 17 285 12511 53 {3.1151 331 170 215 1451 299 291 22 12991 12911 {4,0011 3.336 3.374 175 50 COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 23. Prlor year Statement of Funds- continued Atllan 2021 £1 Inrome E￿ndI￿re Transfers £ocM Galns ind Ogsse51 At31 D¥embBT ENOOWMENT FUNOS Expendoble.. Par50nage Houses Fund Permonent.. Olocesan Stipends Fund Capital Account Church of England Funded Pension Fund Coventry Diocesan Endowrnent Fund Total endowment fund5 6,218 6218 66,654 13971 811 73,286 2.136 12451 13,6471 201 5,234 161 54 5.282 70,132 1201) 2,136 (2441 13,446 77.013 TOTAL FUNDS 93.873 9AZZ 19,7351 780 99A39 24. Prlor year Analysls of net assets between funds General Des18nated Restrkted Endowment Fund £iMs fvnds £(W5 fvnds £O(K)s funds £1￿$ 2021 Total £WOs Funds at 31 December 2021 are represented by: Tangible fixed assets Fixed asset Investments Net current assets Credltors falllng due after more than one year Total net amets 11,141 132 4.824 131 16.094 7,147 72,388 12,5221 18.288 76A51 4,758 158) 99.339 2.441 14141 1.390 2,869 Issi 4,204 2,027 77A113 si