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2023-12-31-accounts

DIOCESEOF COVENTRY Coventry Diocesan Board of Finance Limited REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Company Registered Number." 319482 Registered Charity Number." 24 7828

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED REPORT AND FINANCIAL STATEMENTS - for the year ended 31 December 2023

CONTENTS

CONTENTS
Page
Message from Bishop Ruth 2
Chair’s Report 3
Trustees’ and Directors’ Report 4-20
-
including the Strategic Report and Governance Report
Auditor’s Report 21-23
Financial Statements
Statement of Financial Activities 24
Income and Expenditure Account 25
Balance Sheet 26
Cash Flow Statement 27
Notes to the Financial Statements 28-52

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED

REPORT AND FINANCIAL STATEMENTS - for the year ended 31 December 2023

A Message from Bishop Ruth

A huge “thank-you” to all who have given of their gifts, skills and talents in the past year across the diocese. We are all enormously grateful

I am writing this message almost six months after my arrival in the diocese as your Acting Diocesan Bishop and six months after Bishop Christopher’s departure to Windsor. Alongside that departure and arrival, we also welcomed Steve Coomber in January 2024 as our new Chair of the DBF in succession to Simon Danks who, in 2023, was appointed the Cathedral’s Chief Operating Officer - with the space ably held by Chris Baker as Interim Chair until Steve’s arrival! Much change!

Despite these comings and goings, it is so good to be able to reflect upon the solid framework of ‘Our Shared Future’ with the first iteration of that framework coming into effect in 2023 supporting our vision of restored health, new growth and renewed relationships. The resulting achievements and performance of last year are encouraging, not least because of our increasingly strategic and intentional manner of operation with a determination, amongst much else, to provide a range of support services to our parishes as informed by the listening exercise, parish needs survey and Archdeacons’ Articles of Enquiry.

There is still much work to be done, of course, but it is hugely encouraging that key priorities and workstreams are now drawn together in a direction of travel which not only aligns us with the Church of England’s priorities but allows us to build upon those needs, challenges and opportunities we have identified for Coventry Diocese.

May I conclude by reiterating my heart-felt gratitude and sincere thanks to colleagues in the Diocesan Offices, to members of the DBF and also, of course, to those in our wonderful parishes, schools and chaplaincies all of whom offer their skills and gifts as we work together towards our shared future. Undoubtedly there will be challenges along the way not least as we face turbulent times in our world. But there is much to which we should look forward with hope and trust and, with our faith rooted firmly in the Resurrection of Jesus Christ, we give thanks to God who is faithful, praying that his reconciling purposes – in all things – may be fulfilled.

The Right Revd Ruth Worsley Acting Bishop of Coventry

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED

REPORT AND FINANCIAL STATEMENTS - for the year ended 31 December 2023

Chair’s Report

The year ending 2023 has been one of significant change within the Diocese, perhaps most keenly illustrated by the changes we have seen in our episcopal oversight.

First, in August Bishop John Stroyan retired after more than eighteen years as our Suffragan Bishop. We are immensely thankful and deeply grateful for all he has contributed to the life of the diocese. Then, in early November, after serving as our Diocesan Bishop since 2008, Bishop Christopher left to follow his call to become the Dean of Windsor. Our gratitude for Bishop Christopher’s humble and faithful service to the Diocese over the last 15 years was expressed in a beautiful service of thanksgiving and farewell in the Cathedral on Saturday, 4[th] November 2023.

On 5[th] November, the Right Reverend Bishop Ruth Worsley (Bishop of Taunton) joined us as the Acting Bishop of Coventry, supported by Bishop Saju Muthalaly, Bishop of Loughborough. We are grateful to both for offering their time and precious gifts to provide us with the episcopal oversight we need during the Vacancy-in-See. We are also enormously grateful for the support of our Assistant Bishops; Bishop Jonathan Meyrick, Bishop Edward Condry, Bishop Paul Thomas and Honorary Assistant Bishop David Evans.

I would also like to give thanks and recognition to Simon Danks who, after 3 years as the Chair of the Coventry Diocesan Board of Finance, left to become the Chief Operating Officer of the Cathedral.

Looking across the Diocese more widely, I recognise that these continue to be financially challenging times for our parishes and am immensely grateful to our congregations for their generosity and for the exceptional work of our volunteer treasurers. Their combined efforts meant we received £5.1m in parish share, which represents a small increase from 2022. This, combined with the income from our investments, enabled us to maintain our clergy and curate numbers, look after their vicarages, and provide ongoing ministerial development and support for them and our self-supporting ministers, lay licensed readers and clergy with permission to officiate. This generosity also helped to resource mission and ministry across the Diocese, and enable a warm welcome to over 14,000 worshippers, and facilitate more than 2,400 weddings, funerals and baptisms.

You can read all about our activities across the course of the year in section 1.3 of this report.

Towards the end of the year, Diocesan Synod approved the budget for 2024. With generous stewardship and good fiscal management, we have been able to budget a slight increase in parish share offers and a reduction in the release of historic funds. We have also been able to manage costs, resulting in just a 2% increase in overall expenditure. The central commitment within the budget is to ensure the Board of Finance is appropriately resourced to enable it to continue to serve and support the life of our parishes, schools, and the Cathedral, as well as our clergy and laity.

I would like to thank everyone across the Diocese for their continued commitment to our mission purpose and for their prayers as we seek to advance the Kingdom of God.

Steve Coomber

Chair of Coventry Diocesan Board of Finance Limited

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

The trustees, who are also directors for the purposes of company law, present their combined Trustees’ Report and Directors’ Report, together with the audited financial statements, for the year ended 31 December 2023. The Trustees’ and Directors’ Report is presented in sections as follows:

Section 1: Strategic Report - which includes a review of achievements and performance in the year Section 2: Governance Report

Section 3: Trustees’ and Directors’ Report Approval

SECTION 1: STRATEGIC REPORT

1.1 OBJECTIVES AND ACTIVITIES

Following the refresh of the Whole Diocese Strategy and strategic objectives, the Our Shared Future framework was formally adopted towards the end of 2022. This was created to help us work together as a whole diocese to achieve the Bishop’s vision of restored health, new growth and renewed relationships through our mission purpose of worshipping God, making new disciples and transforming communities.

In 2023, the framework identified the support we have committed to giving to our parishes and articulated the work we will be undertaking in nine key areas. Throughout the year progress was monitored through an annual plan which was reported to the Bishop’s Strategy Integration Group and Bishop’s Council.

The support to our parishes included: providing safeguarding training and advice, managing casework; and helping parishes to respond to safeguarding concerns and allegations; paying grants, stipends and pensions, managing investments, administering parish share and producing budgets, reports and accounts; maintaining and improving our vicarages and other clergy houses; releasing, recognising and resourcing lay ministry, discerning vocations, training ordinands and curates, managing clergy appointments, providing continuing ministerial development and providing HR support; advising about the care and development of churches, including the Diocesan Advisory Committee, and helping to find grants; sharing news, information and resources with parishes, maintaining the diocesan website, Equip Hub and social media channels; and arranging meetings and providing briefing papers for Diocesan Synod, Bishop’s Council, and statutory diocesan committees.

The nine key commitments included:

Public benefit

The trustees are confident that by promoting the work of the Church of England in the Diocese of Coventry the Diocesan Board of Finance (DBF) helps to promote the whole mission of the Church of England - pastoral, evangelistic, social and ecumenical - both in the Diocese as a whole and in its individual parishes, and that in doing so provides a benefit to the public by:

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the DBF’s aims and objectives and in planning future activities.

1.2 PRINCIPAL RISKS

The DBF’s system of risk management was reviewed during 2023 and an updated Risk Management Policy and Procedure was adopted by the trustees at their May 2023 meeting. The scoring system used to assess risks was updated in line with Charity Commission guidance, to give greater emphasis to the potential impact.

As outlined within the Risk Management Policy and Procedure, the organisational risk register is reviewed at least quarterly by the Coventry Operational Leadership Team and also the Bishop’s Strategy Integration Group. The risk register is reviewed at each Audit & Risk Committee meeting. Trustees receive the risk register prior to each of their meetings and have the opportunity to raise any questions or ask for clarification. An annual review of risk is carried out by the trustees, including a review of the risk register and horizon-scanning.

At the end of 2023, the DBF’s trustees had identified 31 risks for inclusion on the organisational risk register. Of these, 12 risks were noted as ‘significant’ – ie. those risks where the post-mitigation ranking remains moderate or major. The significant risks were summarised as:

Risk description summary Mitigations & actions
Lack of cohesive strategic
direction and forward planning.		 Strategic framework developed and endorsed by trustees (Bishop’s
Council) and members (Diocesan Synod). Strategy embedded in
key operational and strategic meetings. Annual implementation
plan developed to include ongoing monitoring and review. Links
developed between strategic priorities and longer-term financial
planning.
Grant approval process not
aligned to strategy.		 Application guides reviewed for each fund. Applicants asked to
demonstrate link to strategic objectives. Committee provided with
additional background context whilst reviewing applications.
Grants committee to be part of wider governance review, seeking to
improve efficiencies.
Lack of suitably skilled and
trained trustees and committee
members.		 Vacancies actively managed. Governance review underway which
includes committee reflective sessions and review of required skills
and trainingfor all bodies.
Lack/loss of key parish volunteer
roles. Increased burden on
decreasing pool of volunteers.
Impact on relationship between
parishes and DBF.		 Listening exercise undertaken to determine what support is most
needed. Additional support for key functions developed (HR
resources, Parish Structures role). Ongoing
churchwarden/treasurer support and training.
High number of simultaneous
senior leadership vacancies.		 Interim measures put in place to cover episcopal and other
vacancies. Additional archidiaconal support implemented.
Continuity of direction via approved strategic framework.
Continued oversight via the Bishop’s Core Staff Team(BCST).

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

TRUSTEES’ AND DIRECTO RS’ REPORT -for the year ended 31 December 2023
Lack of consistent documented
procedures, inconsistent record
keepingof decision making.		 Written procedures for key processes. Delegation of authority to be
reviewed/updated.
Risk that budget does not match
key objectives and priorities.
Inaccurate/incomplete financial
projections and reporting.
Inaccurate mapping of income
and expenditure.		 Financial updates for key committee meetings enabling decisions to
be made with accurate information. Reinstatement of regular
management accounts for budget holders, following transfer of
financial systems. Cash flow projections in place to ensure
sufficient liquidity. Long-term financial strategy under
development.
Insufficient income to meet cost
of ministry and strategic aims,
dependence on limited income
sources (Parish Share,
investment income).		 Investment portfolio actively managed. Ongoing monitoring of
Parish Share collection rates by DBF finance team and the Diocesan
Finance Group (DFG), early intervention for any potential issues
highlighted. Financial statements to parishes being reinstated
following transfer of financial systems, increasing communication
withparish and deanerytreasurers.
Impact of maintaining church
buildings (missional, financial).		 Ongoing development of deanery plans. Support provided from
Church Buildings Team. DBF and other grant funding available.
National funding secured for additional Church Buildings Support
Officer role. Provision for potential closure of church buildings
looked at within long-term financial strategy.
Wider economic and political
situation, impact on finances
and wellbeing.		 Sources of help promoted to parishes (DBF grant funding, Benefact
Trust etc). Ongoing monitoring of wider situation and potential
impact. Long-term financial strategyunder development.
Impact of outworking of Living in
Love and Faith/Prayers of Love
and Faithprocess.		 Ongoing monitoring and communication, particularly by the
Archdeacons and BCST.
Potential impact of serious
safeguarding incident.		 Safeguarding strategy and training programme in place, managed by
the Diocesan Safeguarding Team (DST). Additional resources
provided to increase DST capacity. Action plan in place for Past
Case Review 2 (PCR2) outcome. Safeguarding dashboard made
available to parishes without cost. Diocesan Operational
Safeguarding Team (DOST) ongoing review. Diocesan Safeguarding
ScrutinyGroup (DSSG) provide external scrutinyand support.

1.3 ACHIEVEMENTS AND PERFORMANCE

Our achievements and performance are guided by our vision for Restored Health, New Growth, and Renewed Relationships. In 2023, we saw the first iteration of 'Our Shared Future,' our strategic framework, come into effect. This meant that all our efforts were aligned with a vision, prompting the DBF to be more intentional in both the existing support we offer and our innovative activities. While ongoing improvement and review are inherent to our organisation, we are pleased to be able to document our achievements throughout 2023.

Restored Health

Healthy Churches

Continued Churchwarden training sessions and the expansion of our training and resources catalogue on the Equip Hub are strengthening churches and empowering volunteers and lay leaders. We introduced an HR support package for parishes to alleviate the pressure associated with employing staff and workers. 39 churches have been supported with project planning and building developments, submitting grant applications totalling over £288k, of which £242k were approved. A Church Building Strategy Working Group was established to develop a strategy for managing our older buildings and addressing necessary repairs, thereby relieving some of the burden on our Clergy in

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

managing these properties. Buildings for Mission funding was secured from the National Church resulting in an increased repairs fund. There was also continued engagement of churches in Natural Church Development (NCD) surveys, with 15 churches developing fresh plans, with some using metaphor and art to creatively explore healthy church concepts. Research by way of the Volunteer Innovation Project was also commissioned, with the report due in 2024.

Healthy Communities

The diocese continued to work with its chief community transformation partner, Together for Change (TfC), which celebrated its 10th year in 2023. A bid to the Social Fabric Fund to establish a Saints venue at Barr Pool, Nuneaton, was made, while TfC was able to purchase the Saints Nuneaton building and begin tendering for phase two building works. Saints continue to have a positive impact on local families providing support over the Christmas period. Staff from the established Fresh Start project were transferred to St. Peter’s Hillfields.

Throughout the colder months, some of our partner funds from the Church Commissioners and Aviva were distributed to establish and run Warm Hubs. Wyken’s warm welcome was even able to continue supporting the community beyond winter.

A significant amount of organic work serving and supporting our communities was also carried out in parishes across the diocese in 2023. In Tile Hill, residents living in a derelict tower block were moved to new, safer homes with support from our local priest. Studley Parish Church continued to run a dementia café, while St. Edmund’s Shipston took worship into care homes. Further parish activity has transformed a derelict site in Stoke Aldermoor into St. Catherine's Community Garden. Additionally, the Blue Roof Coffee van continued to be a connection point for local people as it celebrated one year of serving the Chapelfields community. Many of these projects were supported with funding from the Diocesan Mission Fund, which helps to establish missional and pioneering work across the diocese.

Healthy People

The Clergy Wellbeing group continued to meet and discern the findings from the Clergy Wellbeing survey, including providing signposting to sources of support, both financial and wellbeing. Additionally, the ongoing programme of clergy housing refurbishment was maintained. 2023 saw the establishment and training of mental health supporters among diocesan staff, who went on to deliver training. A new HR system was implemented, and an employee wellbeing package was collated.

The early part of the year initiated a diocesan-wide listening phase via several vehicles, chief among them a parish needs survey. A report was produced with four major findings, which helped shape the 2024 work plans. The year also saw the safeguarding team launch the latest national training requirement, ‘Raising awareness of domestic abuse’, celebration of St. Paul’s Leamington's one-year anniversary of its wellbeing café and production of articles supporting mental health awareness continued to support our aim of healthy people.

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

New Growth

Growing new worshipping communities

A New Worshipping Community Taster Day was hosted in the Autumn with over 50 attendees as we move towards the goal of establishing 150 new worshipping communities in the diocese. Positive developments from Urban Plants include repaired community relationships, bilingual services at St. Peter's Hillfields, and many baptisms and confirmations. Learning communities such as Myriad for lay leaders and Greenhouse are being established in support of leaders of NWC. There was also exploration of alternative worshipping community ideas, such as Forest Church, Lego Church, and Chocolate Church!

Children, Families and Young People

The highlight event of 2023 was Alive, which gathered over 8,000 children from church schools for a praise party and picnic, inspiring numerous 'Staying Alive' activities in schools and churches. The Urban Plants continued to flourish, with initiatives like messy church in Bedworth regularly seeing 50 children and youth support at The Church of the Risen Christ, Wyken where milkshakes or hot chocolates are enjoyed by scores of young people. The diocese has appointed a Growing Faith Enabler to support children and young people outwork their faith in schools, homes and churches. Whilst the DBF and Diocesan Board of Education (DBE) are also exploring new worshipping communities that are rooted in schools reflecting the huge potential in this area.

Growing Leaders

2023 saw the development of five new lay training pathways, along with lay ministry conferences and retreats as well as significant updates to the Equip Hub online leadership training platform. Recruitment of a new leader for one of our leadership pipelines St. Mark's Academy was successful. We saw the ordination of 13 new priests and 11 new deacons, and involvement of individuals in the discernment process and training programme. 25 Readers were also relicensed with 2 Readers being transferred into the diocese and 1 new Reader licensed.

We also asked the diocese ‘What is a vocation?’ on our communication platforms and shared training including, ‘Hearing your calling’ to encourage the wider gift of ministry in the church.

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

Renewed Relationships

Renewing our relationship with Each Other

At a time of great difference and challenge within the Church of England, the diocese continued to embody its charism of reconciliation and its strategic commitment to seeing God’s church love one another better. Our Reconciliation Enabler was a regular voice in the diocese, even facilitating some sessions as the diocese worked through the Living in Love and Faith process. The diocese continues to highlight inspirational stories from its past, such as Building a Bridge of Love in a Time of War, The Story of the Cross of Nails, and "Enemy’s Love" – a love that crosses boundaries.

Good work has continued around racial awareness, and the online version of the ‘Amazing Grace’ racial justice course was well attended and well received. Saluting Our Sisters was an exhibition held at All Saints, Leamington, which celebrated the important contribution that black women have made to society. Additionally, the winner of the racial justice logo competition was announced, further profiling the need for racial justice while also engaging our younger generations.

Renewing Our Relationship with Generosity:

Plans for 2023 encountered an early setback, and the DBF was not as successful as hoped with this aspect of the vision. The major factor was that our Generous Giving Advisor, appointed in early 2023, did not stay in the post for very long, and we were unsuccessful in recruiting a replacement. Despite not being able to achieve all that was planned, the DBF remained intentional about renewing our relationship with generosity by promoting the Living Generously course. In partnership with churches, an overarching strategy and resources for renewing generosity are being developed.

Our churches responded to the energy and cost-of-living crisis with a large number of community activities, some of which are outlined in the ‘Healthy Communities’ section. Support for clergy and churches was offered through hardship and energy grants as the costs for heating homes and churches increased. Following feedback received in our listening exercise and from deanery treasurers, the DBF has also committed to communicating diocesan finances with more clarity.

Renewing Our Relationship with the Environment:

Recruitment of a Net Zero Carbon Project Officer and approval of a Net Zero action plan by Diocesan Synod further underlined our commitment to the environment this year.

A Clergy housing study was undertaken and houses were identified for pilot energy efficiency improvements. £155k has been allocated in Church Improvement Fund and Net Zero grants to parishes for energy efficiency projects such as the installation of heat pumps, insulation improvements and solar panel installation. Coventry Cathedral celebrated Earth Day as we continued to profile our desire to renew our relationship with our environment.

We also continued to raise awareness of this strategic priority and the climate crisis more widely with various articles and signposting across our communication platforms. Articles included, ‘How individuals can do their bit to support the environment’ and ‘Why Christians should be leading the way to protect the planet’.

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED

TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

1.4 SUMMARY OF FINANCIAL PERFORMANCE

The financial result for 2023 was a deficit before investment gains of £1.3m (2022: deficit £0.9m). This was offset by both the release of £2.8m (2022: £2.4m) of unallocated historic funds (in line with the Diocesan Synod approval in November 2022) and investment revaluations gains of £3.6m (2022: loss of £4.5m) leading to an overall increase in total funds for the year of £2.3m (2022: reduction £5.2m). Total funds at the end of the year were £96.4m (2022: £94.1m).

As noted above, the policy of realising amounts from unallocated total return continued this year at a value of £2.8 million. The release is made by way of a transfer from Endowment Funds and to date transfers made have been in 2021: £2.1m, 2022: £2.4m and 2023: £2.8m. Actual drawdowns from these transfers amounted to £1million during the 2023 financial year.

Income during the year, before the release of historic funds, was £10.3m (£11.1m in 2022.) Although parish share income increased from £4.8m to £5.1m in the period this was more than offset by reductions in receipts from church commissioners and other grants and donations. These movements are detailed in note 4.

Total expenditure in 2023 was £11.7m, a reduction of £0.4m compared to expenditure of £12.1m in 2022 as detailed in Note 5.

The cost of mission and ministry reduced by 3% to £7.1m (2022: £7.3m) with lower expenditure on clergy housing costs of £0.4m. These savings were partly offset by higher curate stipend costs and staff costs. Costs in support of mission and ministry (Note 5c), reduced by 17% to £3m (2022: £3.6m), due to a reduction in grants following a previous significant increase in 2022, as planned missional activity returned to pre-pandemic activity.

The value of Designated Funds increased to £17.1m (2022: £17m). Restricted Funds at the end of the year amounted to £6.1m (2022: £4.6m). This year we received grants from the Church Commissioners including for Lowest Income Community (LINC) funding and Ordination training. Grants were also received for Urban planting, Net Zero and Serving Christ programmes. More information is set out in note 16.

The Endowment Funds (Note 16 to the Financial Statements) were valued at £70.9m at the end of the year, (2022: £70.9m). The main movements were investment income of £2.4m (2022: £2.4m), gains on revaluation of investment assets of £3.0m (prior year losses 2022: £3.9m), actuarial movements on the Church of England Clergy Pension scheme of nil (2022: £203,000) and release of £5.1m of Endowment Funds (2022: £4.5m). Note 18 explains the full impact of total return on these accounts.

Principal Funding Sources

The principal sources of funding in 2023 came from Parish Share £5.1m, 49% (2022: £4.8m, 43%), investment income of £2.6m, 25% (2022: £2.5m, 22%), from Church Commissioners £1.0m, 10%, (2022: £1.3m, 12%) and £1.6m,16% from other sources (2022: £2.5m 23%). Other sources of income include parochial fees from weddings and funerals, rental income from the letting of houses whilst not occupied by clergy, restricted income from The King Henry VIII Endowed Trust (used to meet costs in the Warwick area) and various other grants and donations.

Parish Share

Total parish share income received was £5.1m (2022: £4.8m). This includes amounts received that related to parish share allocated for previous years of £0.25m, but excluded amounts received after the 31 December 2023 cut-off date. We are working with Deaneries to improve communication and encourage positive dialogue where there are difficulties in meeting obligations. No Parish Share relief was given during the year.

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

The Diocese has continued to promote the Parish Giving Scheme, a direct debit scheme that encourages individual church members to review their giving regularly and also provides an efficient way for parishes to receive Gift Aid on gifts received.

Investment Income

Total investment income was £2.6m (2022: £2.5m) and derived mainly from equities and Glebe assets. After allowing for Glebe management fees and other Glebe operating costs, net investment income was £2.2m (2022: £2.3m). Other investment income, which includes interest and other property income increased to £102k (2022: £32k).

In 2023 total return performance (gross) for investment funds in which the DBF is invested was as follows:

CCLA's CBF Church of England Investment Fund: +12.57% (2022:- 9.16%)

This is against a benchmark of long-term total return of inflation (CPI) plus 5% per annum before costs. In 2023, this benchmark was +8.93%.

As at 31 December 2023 the DBF held £1,726,498 in the CBF Deposit Fund.

Investment objectives and investments held

The DBF's investment objective, with respect to amounts available for investment, is to safeguard capital values in real terms over the long term and to provide real growth in net income, whilst complying with the Church of England Ethical Investment Policy.

Investments are principally held in Glebe properties and in investment funds. The investment funds are managed by CCLA Investment Management Limited and are diversified funds for charities, invested mainly in equities, but also in fixed interest securities, property and other assets. There are no holdings in fossil fuels. Glebe investment properties comprise agricultural, commercial and residential land and buildings.

The total value of investments shown on the Balance Sheet at 31 December 2023 was £72.4m (2022: £68.8m) of which £64.7m (2022: £64.7m) was permanent endowment (Note 12 and Note 16).

Following the approval of a Total Return approach to investments in the Diocesan Stipends Fund, and a further subsequent discussion at Bishop's Council, the trustees agreed that historic unapplied return of £2.8m (2022: £2.4m), plus the income investment returns that would ordinarily be recognised in the 2022 accounts if total return had not been adopted, would be recognised as income in the 2023 accounts.

Stipendiary clergy headcount

The full time equivalent (FTE) number of office holders in the Diocese who were stipendiary clergy in 2023 was 111 (2022: 108), which includes two Archdeacons. The average number of curates was 28 (2022: 24.5) reflecting the diocese's commitment to increase the intake of clergy over the coming years.

House for Duty Clergy, Self-Supporting Ministry and volunteers

Whilst acknowledging that many of our self-supporting ministers are office holders and living in their own houses, there are office holders that the DBF provide with houses. In 2023 there were 12 (2022: 7).

The activities of the Church of England across the Diocese of Coventry depend hugely on the generosity of our retired clergy, self-supporting ministers, Readers and lay ministers. The value of this

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

time, to the Diocese as a whole and in particular to the DBF, cannot be quantified and recognised in the financial statements. The DBF is grateful to all those whose contribution is essential to the mission of the whole Diocese.

Pension schemes

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 2023 was £7,127 (2022: £9,342) per full time stipendiary clergy member. If they are not members of the clergy pension scheme, the DBF's permanent staff are members of the Church Workers Pension Fund. Further details of both Schemes are in note 2 to the Financial Statements. DBF staff employed on temporary or short-term contracts, who have qualifying earnings or the right to opt in, are enrolled in the National Employment Savings Trust (NEST - the workplace pension scheme set up by government).

Reserves policy and the General Fund position at the year end

The funds held by the DBF at 31 December 2023 comprise the following: Endowment funds totalling £70.9m. This amount includes expendable endowment of £6.2m relating to the Parsonages Housing Fund and permanent endowments of £64.7m. The permanent endowment includes £63.8m relating to the Diocesan Stipends Fund of which £38.9m is unapplied total return. The Trustees can apply the unapplied total return to the Diocesan Stipends Fund Income Account, to use for the restricted purpose of payment of clergy stipends, houses and the management and maintenance of Glebe property.

Restricted Funds totalling £6.1m to be spent in accordance with the donor's wishes.

Unrestricted funds of £19.4m, which includes £17.2m of designated funds that relate substantially to operational properties and are therefore illiquid.

The objective of the DBF's reserves policy is to ensure adequate working capital resources. During 2023, the policy was to ensure the General Fund remained within a range equivalent to two and a half to three and a half months' worth of operating costs, as approved by Diocesan Synod for the ensuing year. This policy has been reviewed and has been left unchanged.

Diocesan Synod approved a maximum sum to be spent from operating funds in 2024 £12.5m (2023 £12.1m). The balance in the General Fund at 31 December 2023 was £2.3m which represents approximately 2.3 months of planned spending and is therefore marginally below the bottom of the policy target range.

1.5 PLANS FOR THE FUTURE and FUTURE COMMITMENTS

In late 2023, the Bishop’s Council received an updated Our Shared Future document. It was developed and refined after the period of listening and discernment that took place throughout early 2023. This included a parish needs survey and feedback through the Archdeacons’ Articles of Enquiry. From this listening we heard about the challenges and opportunities across the Diocese. These included, for example: the significant opportunity for ministry and mission with children, young people and families; the desire for more leadership development and volunteer training; the increasing impact of church building management on clergy and volunteers; and the growing need for specialist support for parishes.

Our mission purpose and the Bishop’s vision remains the same, but the document now reflects what we have heard from parishes, clergy and others. It draws together the strands of our core work and key commitments and sets the direction to realise the vision for our diocese.

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COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

It contains six key priorities

We have also identified seven distinct workstreams to resource our missional growth, including

With three underpinning strategies

Going forward we will be seeking significant National Church investment and partnership during this strategic period and have aligned our plans to the Church of England’s three priorities and six bold outcomes, while keeping the Diocese of Coventry-specific priorities.

13

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

SECTION 2: GOVERNANCE REPORT

2.1 COMPANY LEGAL STATUS

The DBF was incorporated on 12 October 1936 as a charitable company (No. 319482) 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 Diocese of Coventry under the Repair of Benefice Buildings Measure 1972.

2.2 DIOCESAN SYNOD AND DBF MEMBERSHIP

The Diocese is governed in accordance with the Synodical Government Measure 1969, under which its governing body is the Diocesan Synod. Every Diocesan Synod member is a member of the DBF for company 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 Diocesan Synod is made up of three Houses:-

House of Bishops : the Acting Bishop of Coventry (President of the Diocesan Synod) and the Bishop of Warwick (post currently vacant).

House of Clergy : 40 members, including the Chair of the House and six ex-officio members (the Dean of Coventry, two Archdeacons, and the three diocesan clergy General Synod members). The remainder were elected by the houses of clergy of Deanery Synods.

House of Laity : 47 members, including the Chair of the House and six ex-officio members (the Diocesan Chancellor, the Chair of the Board of Finance, the Chair of the Board of Education and the three diocesan lay General Synod members. One member was nominated by the Bishop of Coventry (President of the Mothers’ Union). The remainder were elected by the houses of laity of Deanery Synods.

Elected and nominated members of the Diocesan Synod hold office for a term of three years. The current term of office runs from 1 August 2021 to 31 July 2024.

The Diocesan Synod normally meets three times a year and its functions are to:

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 responsibilities have been delegated to its Standing Committee, the Bishop’s Council.

2.3 BISHOP’S COUNCIL AND THE TRUSTEES AND DIRECTORS OF THE DBF

The Bishop’s Council is the senior committee of the Diocese. Under the Standing 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 purposes of company law, and the members of the Diocesan Mission and Pastoral Committee .

As the Standing Committee of the Diocesan Synod, the Bishop’s Council is responsible for:

14

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

sessions – this function is delegated to the Business Committee.

As the Diocesan Mission and Pastoral Committee (DMPC) and in consultation with the eleven Deanery Mission and Pastoral Committees, the Bishop’s Council:

Financial accountability responsibilities of Bishop’s Council members as trustees and directors

The trustees of the DBF, who are also the directors of the DBF for the purposes of company law, are responsible for preparing the Directors’ and Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

15

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

Membership of the Bishop’s Council

The membership of the Bishop’s Council is comprised of a maximum of 32 members as follows:

The Chair of the DBF, one of the ex officio members of Bishop’s Council, is nominated by the Bishop of Coventry and appointed by Diocesan Synod. During 2023, the Bishop’s 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 election of their successors.

During the year the members of Bishop’s Council were as follows:

EX-OFFICIO

President The Rt Revd Dr Christopher Cocksworth – to 5 Nov 2023 Acting President The Rt Revd Ruth Worsley – from 6 Nov 2023 Bishop of Warwick The Rt Revd John Stroyan – to 7 Aug 2023 The Rt Revd Saju Muthalaly – from 6 Nov 2023 Archdeacon Pastor The Ven Sue Field – to 4 April 2023 Acting Archdeacon Pastor The Revd Tim Cockell – from 3 July 2023 Archdeacon Missioner The Ven Barry Dugmore Dean of Coventry The Very Revd John Witcombe Chair of the House of Clergy The Revd Claire McArthur Chair of the House of Laity Phil Sewards Chair of the DBF Simon Danks – to 5 Sept 2023 Interim Chair of the DBF Chris Baker – from 5 Sept 2023 to 31 Dec 2023 NOMINATED MEMBERS Nominated by DAC The Revd Peter Walker – to 19 June 2023 Nominated by Parsonages Cmte The Revd Peter Walker – to 19 June 2023 Nominated by DBE Chris Edwards – to 10 Sept 2023 Nominated by DBE The Revd April Gold – from 10 Sept 2023 BISHOP’S NOMINEES The Revd Kate Massey – to 15 Sept 2023 The Revd Dr Anita Morgan – from 15 Sept 2023 The Revd Esther Peers – from 15 Sept 2023 Emili Lowery ELECTED CLERGY The Revd Andy Batchelor – from 2 May 2023 The Revd Kay Dyer The Revd Alison Evans The Revd Barry Jackson The Revd Jonathan Jee The Revd Stephen Parker The Revd David Poultney The Revd Jo Parker – to 19 Feb 2023

16

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

ELECTED LAITY

Chris Baker John Elton – from 11 April 2023 Jo King Ogechi Ngemegwai Sue Williams Sarah Mount Tim Pollard Marion MacLellan

CO-OPTED MEMBERS

No co-opted members

2.4 COMMITTEE STRUCTURE

There are a number of Diocesan committees which advise the DBF:

2.5 DIOCESAN SECRETARY AND STAFF

The Diocesan Secretary serves as the Secretary to Diocesan Synod and Bishop’s Council and as Chief Executive Officer and Company Secretary of the DBF. The Diocesan Secretary and her staff carry out the day-to-day 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 ‘Director’ they are not directors of the company for the purposes of company law or trustees of the charity for the purposes of charity law. For information relating to staff headcount and costs, see note 10 to the financial

17

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

statements. Jacqueline Ladds has been Diocesan Secretary and CEO since her appointment on 23 May 2022.

In 2023 there was one staff member employed under joint working arrangements by the Leicester Diocesan Board of Finance (company registered number 227087; registered charity number 249100). This arrangement is regularly reviewed and continues to be an effective method generating economies of scale without detriment to the service provided.

2.6 RELATED PARTIES

Coventry Diocesan Trustees (Registered)

The Coventry Diocesan Trustees (Registered), registered charity number 249165, is the Diocesan Authority under the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964. The Trust is the custodian trustee holding property and funds on behalf of PCCs and the DBF.

Coventry Diocesan Board of Education

Coventry Diocesan Board of Education (the DBE – a company registered in England and Wales no. 3663851 and a registered 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 promotion or assistance in the promotion of education in the Diocese, which is consistent with the faith and practice of the Church of England and therefore consistent with the objectives of the DBF.

2.7 OTHER GOVERNANCE MATTERS

Charity Governance Code and Governance Review

The DBF began work on a governance review during 2023, with the aim of ensuring that the organisation has an effective and efficient governance framework in place in order to continue to fulfil our statutory obligations and enable us to work towards our identified priorities. During 2023 a process of discovery and engagement took place including a desktop review and committee reflective sessions, led by a Governance Review Working Group. The review has drawn upon the Charity Governance Code as a tool to support continuous improvement. The review will continue into 2024, where decisions on the proposed revisions will be put to the Trustees. A Governance Handbook will be created which will further develop the training and induction for trustees, committee chairs and committee members.

Risk management

The trustees confirm that the risks to which the DBF is exposed, as identified by the trustees and staff, have been reviewed and that systems and procedures to manage those and other identified risks have been established and reviewed. The trustees review the risk register at least annually and receive updates at each trustee meeting. The trustees delegate to the DBF leadership team day to day management of the risks the DBF is exposed to. In addition, the Audit & Risk Committee review the risk management processes and the risk register regularly, and reports to the trustees on whether it is satisfied with its findings. Recommendations are made as a result of those findings. The principal risks identified are shown in Section 1.2 of this report.

Valuation of properties in the financial statements

Investment properties are stated in the balance sheet at fair value. All non-investment properties - parsonage houses, operational 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 substantially in excess of cost, but the amount of this excess is not economically quantifiable.

18

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

Auditor

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees and directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

A resolution to reappoint Crowe LLP as auditor to the company and to authorise the Board of Directors to fix the auditor’s remuneration will be proposed at the Annual General Meeting.

2.8 REFERENCE AND ADMINISTRATIVE DETAILS

Registered & Principal Office Diocesan Offices, 1 Hill Top, Coventry, CV1 5AB
Telephone 024 7652 1200
Website www.coventry.anglican.org
Company registration number 319482 (England and Wales)
Charity registration number 247828 (England)
Company Secretary Jacqueline Ladds
Registrar and solicitors Jenny Dymond – Diocesan Registrar
Geoffrey Cotterill_– deputy Diocesan Registrar from 25 June 2023_
Rotherham & Co
8 & 9 The Quadrant, Coventry, CV1 2EG
Auditor Crowe UK LLP
Black Country House, Rounds Green Road, Oldbury, B69 2DG
Bankers Bank of Scotland
Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ
Diocesan Surveyors Godfrey-Payton
25 High Street, Warwick, CV34 4BB
Glebe Agent Godfrey-Payton
25 High Street, Warwick, CV34 4BB
Insurers Ecclesiastical Insurance Office plc
Benefact House, 2000 Pioneer Avenue, Gloucester Business Park,
GL3 4AW
Investment Managers CCLA Investment Management Ltd
One Angel Lane, London, EC4R 3AB

19

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED TRUSTEES’ AND DIRECTORS’ REPORT - for the year ended 31 December 2023

SECTION 3: DIRECTORS’ AND TRUSTEES’ REPORT APPROVAL

This Trustees’ and Directors’ Report, including both the Strategic Report and the Governance Report, is approved by the trustees, by whose authority it is signed as below.

Mr Steve Coomber

Chair of Coventry Diocesan Board of Finance Limited 3 June 2024

20

Independent auditor’s report to members of Coventry Diocesan Board of Finance Ltd.

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR’S REPORT

Opinion

We have audited the financial statements of Coventry Diocesan Board of Finance Limited for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

21

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR’S REPORT Independent auditor’s report to members of Coventry Diocesan Board of Finance Ltd.

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and

22

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED AUDITOR’S REPORT Independent auditor’s report to members of Coventry Diocesan Board of Finance Ltd.

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 tests 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 noncompliance 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 | 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: 22 August 2024

23

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

STATEMENT OF FINANCIAL ACTIVITIES

Notes
Income and endowments from:
Donations
Parish Share
4a
Church Commissioners
4b
Other grants and donations
4c
Charges for charitable activities
4d
Other trading activities
4e
Investments income
4f
Surplus on sale of assets
4g
Total
Expenditure on:
Raising funds
5a
Charitable activities
Mission and ministry
5b
Support for mission and ministry
5c
Contributions to Archbishop’s
Council
5d
Diocesan Board of Education
5e
Other
5f
Total
Net income before investment gains
Net gains on investments:
Net (losses)/gains on revaluation
12
Net income
Transfers between funds
19
Other recognised gains:
Actuarial gains/(losses) on defined
benefit pension scheme
2
Net movement in funds
Reconciliation of funds
Funds at 1 January
16
Net movement in funds
Funds at 31 December
16		 General
Fund
£000s
Designated
funds £000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
5,112
-
-
-
5,112
4,777
313
-
703
-
1,016
1,285
131
-
653
-
784
1,166
283
-
-
-
283
391
406
1
-
-
407
611
195
2
19
2,357
2,573
2,541
-
151
-
-
151
364
6,440
154
1,375
2,357
10,326
11,135
292
-
-
224
516
513
3,501
-
3,563
-
7,064
7,273
2,294
300
415
-
3,009
3,607
370
-
312
-
682
508
232
-
-
-
232
155
1
141
7
-
149
-
6,690
441
4,297
224
11,652
12,056
(250)
(287)
(2,922)
2,133
(1,326)
(921)
582
11
21
2,999
3,613
(4,525)
332
(276)
(2,901)
5,132
2,287
(5,446)
291
417
4,384
(5,092)
-
-
-
-
-
-
-
203
623
141
1,483
40
2,287
(5,243)
1,660
17,015
4,586
70,835
94,096
99,339
623
141
1,483
40
2,287
(5,243)
2,283
17,156
6,069
70,875
96,383
94,096

24

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

INCOME AND EXPENDITURE ACCOUNT RESTATED

Total income
Total expenditure
Net gains on investments
Net income/(deficit) for the year before transfers
Transfer from endowment funds
Net income for the year after transfers		 2023 Total
£000s
2022 Total
£000s
7,969
8,706
11,428
11,854
(3,459)
(3,148)
614
(461)
(2,845)
(3,609)
5,092
4,542
2,247
933

The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities.

This year we have shown the unapplied total return and the investment income as a transfer from the endowment fund to general funds. We have restated the presentation of the 2022 figures to be consistent. There is no change to the value of total funds nor their constituent elements.

25

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

BALANCE SHEET

Notes
FIXED ASSETS
Tangible fixed assets
11
Fixed asset investments
12
CURRENT ASSETS
Debtors
13
Cash and cash equivalents
CURRENT LIABILITIES
Creditors: amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
20
FUNDS
Unrestricted funds:
General Fund
16
Designated funds
16
Restricted funds
16
Endowment funds
16
TOTAL FUNDS		 2,440
3,582		 2023
£000s
19,494
72,438
2,632
5,096		 2022
£000s
19,244
68,825
91,932
4,451		 88,069
6,027
6,022
(1,571)		 7,728
(1,701)
96,383 94,096
96,383 94,096
2,283
17,156		 1,660
17,015
19,438
6,069
70,875		 18,675
4,586
70,835
96,383 94,096

The financial statements on pages 24 to 52 were approved by the Board of Directors and authorised for issue on and are signed on its behalf by:

Mr Steve Coomber

Chair of Coventry Diocesan Board of Finance Limited 3 June 2024

26

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

CASH FLOW STATEMENT

Cash flows from operating activities:
Net cash generated by operating activities
Cash flows from investing activities:
Proceeds from sale of fixed asset properties
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash used by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Analysis of cash and cash equivalents at 31 December
Cash in hand
Short term deposits (less than 3 months)
Total cash and cash equivalents
Reconciliation of net movement in funds to net cash
flow from operating activities
Net movements in funds for the year
Adjustments for:
(Gains)/Losses on investments
Profit on sale of fixed asset properties
Depreciation of fixed assets
Actuarial (gains)/losses on defined benefit pension
scheme
Decrease/(Increase )in debtors
Increase/(Decrease) in creditors
Net cash generated by operating activities		 388
(512)
-
-		 2023
£000s
(1,390)
(124)
788
(1,383)
6,792
(3,789)		 2022
£000s
(1,264)
2,408
(1,514)
5,096		 1,144
3,952
3,582 5,096
2023
£000s
840
2,742		 2022
£000s
1,378
3,718
3,582 5,096
2023
£000s
2,287
(3,613)
(151)
25
-
192
(130)		 2022
£000s
(5,243)
4,525
(364)
3
(203)
(476)
494
(1,390) (1,264)

27

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS

1. Principal accounting policies

Basis of accounting

The DBF is a charitable company and a public benefit entity. Therefore, the financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (FRS 102), the Companies Act 2006 and the applicable UK accounting standard (FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland). The financial statements have been prepared under the historical cost convention except that fixed asset investments are included at fair value at the balance sheet date. After making enquiries the trustees are satisfied that the DBF has adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis.

Going Concern

The Trustees are satisfied that the DBF has adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis.

Income

Income is included in the Statement of Financial Activities when the charity is legally entitled to it, receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.

Parish share income

Parish share income for the year, or for previous years, include amounts received up to the 31 December.

Income from parochial fees

Income from parochial fees is accounted for when received.

Grants (receivable)

Grant income is accounted for when the formal offer of funding is communicated in writing, any conditions related to the entitlement have been met, receipt is probable and the amount can be measured reliably.

Donations, legacies and similar income

Income from legacies is recognised when the DBF has been notified that there is a clear indication of the amount receivable. Donations and similar income are accounted for when received.

Investment income

Investment income is accounted for when receivable. Investment income from Common Investment Funds managed by CCLA Investment Managers Ltd is considered receivable when dividends are declared.

Deferred income

Income is recognised as deferred where the event or rental period to which the income relates occurs beyond the end of the financial period being reported on.

Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate similar costs under each category of the Statement of Financial Activities.

Grants (payable)

Grants payable, are accounted for either in full or in part, when authorised, when the award of the grant has been specifically communicated to the recipient or when paid if there is no communication to the recipient in advance, and when any condition attaching to the grant is outside the control of the DBF.

Support costs

These costs consist of indirect staff costs, office and IT costs and governance costs. They are allocated to categories of expenditure on the basis of the proportion of staff time spent on each area of activity. Governance costs

The costs allocated to governance costs are those costs incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Operating leases

Payments under operating leases are charged against income as incurred.

Investment gains and losses

For investments that are not part of the Diocesan Stipends Fund Capital Account, realised gains or losses are recognised in the Statement of Financial Activities when investments are sold. Unrealised gains or losses are accounted for on revaluation of investments at the year end.

28

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

A total return approach has been adopted for the Diocesan Stipends Fund Capital Account. Part of the historic unapplied total return will be allocated to income in the year as determined by the Bishop's Council.

Tangible fixed assets

Parsonage houses, operational properties and the diocesan offices

Parsonage houses, operational properties and the diocesan offices are held at cost or estimated cost. The cost of extensions which enhance the capital value of buildings is capitalised.

For parsonage houses, the legal title and right to beneficial occupation are vested in the incumbent, whereas the DBF is responsible for the maintenance and repair of such properties and can determine their subsequent use or sale. FRS 102 requires accounting treatments to follow the substance of arrangements rather than their strict legal form. Accordingly, parsonage houses are capitalised as tangible fixed assets.

Operational properties are houses owned by the DBF for occupation by stipendiary clergy and House for Duty priests.

The Diocesan Offices are at 7 Priory Row, Coventry (which shares the postal address of 1 Hill Top, Coventry, CV1 5AB).

Depreciation

Depreciation is not provided on land and buildings as any annual or accumulated depreciation would not be material. This is due to the long estimated remaining useful economic lives and because the estimated residual values are not materially less than their carrying values and the buildings are unlikely to suffer from obsolescence. Disposals of buildings occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying values. The DBF has a policy of regular inspection, repair and maintenance of buildings, charges for which are included in expenditure in the Statement of Financial Activities.

Depreciation of non-property fixed assets is charged at rates estimated to write off their cost less any residual value evenly over the expected useful lives that are as follows:

IT and Telecommunications Equipment 3 years Computer Software 3 years Office Furniture and Fittings 5 years

Individual items of office equipment and furniture with a purchase price of £5,000 or less are written off in the year in which the assets are acquired.

Financial instruments

Fixed asset investments

Land and buildings held under the Endowments and Glebe Measure 1976 (“Glebe properties”) are included at fair value. Glebe properties which are fixed asset investments are comprised of commercial properties and agricultural properties. Agricultural properties are predominantly land but include some agricultural buildings and residential properties. Glebe properties also include houses for occupation by clergy that are treated as tangible fixed assets.

Unlisted shares in investment funds are included at fair value at the balance sheet date.

Current assets and liabilities

Debtors are measured at the transaction price less any impairment losses. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Creditors are measured at the transaction price less any amounts settled. For pension liabilities, see note 2.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and short term deposits with any qualifying institution repayable on demand without more than seven days’ notice or penalty.

Pension Schemes – see note 2.

29

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

Fund accounting

The General Fund is an unrestricted income fund which receives income available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted income funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes below.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes below.

Endowment funds are funds held on trust to be retained for the charity as capital funds. Where the whole of the fund must be permanently maintained it is known as permanent endowment. Where there is a power of discretion to convert endowed funds into income, the fund is classed as expendable endowment.

2. Pension schemes’ accounting policy and significant estimates and judgements

The DBF participates in three pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the DBF and the other participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy. The other two are for lay staff and are separate sections of the Church Workers Pension Fund – one a final salary scheme and the other a deferred annuity scheme. All three of these schemes are multi-employer defined benefit pension schemes for which the DBF is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the scheme. A valuation of each scheme, to determine future contribution levels, is carried out once every three years and the resulting report and recovery plan for any deficit is required to be completed within fifteen months of the valuation date. On 26 October 2018, the High Court handed down a judgment involving the Lloyds Banking Group’s defined benefit pension schemes. The judgment concluded that formerly contracted-out schemes are required to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits. In November 2020, the High Court handed down a further ruling concerning the equalisation of GMPs. This ruling requires Trustees to equalise transfer payments paid from schemes. This exercise will require a check on previous transfers paid and if appropriate pay a top-up transfer payment to the receiving scheme if the GMP element is deemed to be unequal.

Normally the Employer is required to reflect both the backdated and future costs of GMP equalisation arising from this judgment. However, since the DBF participate and are accounting as multi-employer defined benefit pension schemes this is not applicable. Any uplift in liability will be reflected in the financial statements once revised deficit recovery payment plans are issued.

Accounting policy

Where the scheme is in deficit and the DBF is required to make deficit recovery contributions, this obligation is recognised as a liability within creditors in the Balance Sheet. The amount recognised is the sum of the deficit recovery contributions payable, discounted to the net present value. The unwinding of the discount in each year, together with contributions required by the Pensions Board for the benefit in relation to pensionable service in the year, is recognised within expenditure in the Statement of Financial Activities. Changes in the pension liability due to changes in the discount rate used and due to inaccuracies and changes in the actuarial assumptions made by the Pensions Board are recognised as actuarial gains or losses in the Statement of Financial Activities.

The liability and movements in the liability are allocated to the Diocesan Stipends Fund Capital Account, an endowment fund held for investment return for the benefit of the Diocesan Stipends Fund Income Account which is expected to be sufficient to cover the DBF’s future deficit recovery contributions. Deficit recovery contributions actually paid in the year are transferred from the Diocesan Stipends Fund Income Account to the Diocesan Stipends Fund Capital Account.

Church of England Funded Pension Scheme (CEFPS)

The template disclosure below was originally prepared by Lane Clark & Peacock LLP ("LCP") for the Church of England Pensions Board. It is based on the final 2021 template disclosure note and LCP's understanding of the

30

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

FRS102 standard in December 2023.

The template caters for Responsible Bodies that participate in the CEFPS and report under FRS102 based on calendar years. Note that any Responsible Bodies that use FRS105 or a "receipts and payments" approach would need to consider the requirements that apply in that case.

The template has been prepared to be helpful to Responsible Bodies but the disclosure is ultimately each Responsible Bodies’ responsibility. LCP has no liability to any party other than the Board.

Membership figures for reference

The membership figures that we hold as at December 2022 and December 2023 for Coventry DBF are set out in the table below. These are used as part of the Board’s calculation of the deficit contributions in payment at each year-end, which in turn feed into the FRS102 calculations, so are provided here for reference.

December 2023
December		 2022
Number of members at this Responsible Body 128 134

Coventry DBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies.

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, which were £872,000 in 2023 (2022: £1,121,000), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022: £0).

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

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

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

% ofpensionable stipends
31 December 2021 7.1% payable from January 2021 to December 2022
31 December 2022 Nil
31 December 2023 Nil

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April

31

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

2022, and remained in place until December 2022.

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

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

2023
2022
Balance sheet liability at 1 January 0
203,000
Deficit contribution paid 0
-125,000
Interest cost (recognised in SoFA) 0
0
Remaining change to the balance sheet liability* (recognised in SoFA)
0
-78,000
Balance sheet liabilityat 31 December 0
0

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

December
December		 December
2023
2022		 2021
Discount rate n/a
n/a		 0.0% pa
Price inflation n/a
n/a		 n/a
Increase to totalpensionablepayroll n/a
n/a		 -1.5%pa

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

Church Workers Pension Fund (CWPF) - Defined Benefits Scheme

Coventry DBF (DBS) participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

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

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

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

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. This does not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

32

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. There is one joint worker employed by Leicester Diocesan Board of Finance who is an active member of the Church Workers Pension Fund.

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board having taken advice from the Actuary.

A valuation of DBS is carried out once every three years. The most recently finalised valuation was carried out as at 31 December 2019. In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employers’ sub-pools to the Life Risk Section. This increased the employer contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m.

The next actuarial valuation is due at 31 December 2022. The calculations for this are under way.

Following the 2019 valuation, the Employer entered into an agreement with the Church Workers Pension Fund to pay expenses of £1,300 per year.

The movement in the provision is set out below:

2023
2022
Balance sheet liability at 1 January
0
11,000
Defcit contribution paid
0
-19,000
Interest cost (recognised in SoFA)
0
0
Remaining change to the balance sheet liability*(recognised in SoFA)
0
8,000
Balance sheet liabilityat 31 December
0
0

Where relevant this liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:

December 2023
December 2022
December 2021
Discount rate
N/A
0.00%
0.00%

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

Church Workers Pension Fund

This scheme is administered by the Church of England Pensions Board, which holds the assets separately to those of the participating employers. There are two sections, the Defined Benefits Scheme, and the Pension Builder Scheme which has two subsections; a deferred annuity section known as Pension Builder Classic, and a cash balance section known as Pension Builder 2014 both of which are defined benefit schemes. Pension Builder Classic provides a pension accumulated from contributions paid and converted into a deferred annuity during employment. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account plus any bonuses is payable, unreduced from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The 2022 scheme valuation results are due to be signed off in 2024 and the current plan is to secure all benefits through insurance contracts called buy ins during the next year followed thereafter by a buy- out. At this point

33

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

responsibility for administering and paying everyone’s pension passes to the insurer and our liability will end.

Our latest valuation report shows a surplus of £287,100. This does not reflect the buy in costs and other uncertainties. After reserving for those uncertainties, the actuaries have calculated we have a usable surplus of £139,000 which is held on the balance sheet at the year end. This surplus will be used to offset against employer PB classic contributions for a period of approximately 12 months. Employee contributions will be collected as usual.

Valuation of glebe assets

Following a period of considerable economic turbulence in 2022 and 2023, and as the UK is in a period of 0.5% growth with anticipated growth for 2024 to be at 0.7% with mean inflation at 6%. However, the Bank of England (BOE) are predicting inflation is unlikely to rise much further, currently at 4%, and will fall in this year, although remaining well above the 2% target set by the BOE. The current interest rate of 5.25% is predicted to decrease to nearer 4.5% in 2024, as inflation appears to be falling.

The benefit of good quality tenants on established leases, in well-maintained premises is likely to prove beneficial to investor Landlords during the next two to three years. The outlook for 2024 is positive, with growth expected to be 0.7%, but uncertain. UK elections in 2024 is likely to fuel the uncertainty.

3. Net Income

Net income is stated after charging/(crediting):
Auditor’s remuneration for the audit
Depreciation
Hire of office equipment
Surplus on disposal of tangible fixed assets		 2023
£000s
2022
£000s
18
18
24
4
4
2
(151)
(364)

4. Analysis of income

a Parish Share

Parish share received for the current
year
Arrears received in respect of previous
years		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
4,861
4,861
4,699
251
-
-
-
251
78
5,112
-
-
-
5,112
4,777

b Grants from Church Commissioners and Archbishops’ Council

This reflects monies from Church Commissioners and Archbishops’ Council which are used in the following activities:

Ministry Division funding of curates
Mission to Lowest Income
Communities grant
Ordination Training Grant (see note 17)
Hardship Fund
Contribution to Bishop’s Legal costs		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
251
-
67
-
318
133
-
-
468
-
468
412
-
-
168
-
168
387
-
-
-
-
-
309
62
-
-
-
62
44
313
-
703
-
1,016
1,285

34

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

c Other grants and donations

King Henry VIII Endowed Trust
Benefact Trust
Urban Plant Programme
Net Zero Grant
Serving Christ
Other grants and similar income		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
-
-
190
-
190
227
103
-
-
-
103
118
-
-
167
-
167
1,250
-
-
35
-
35
-
-
-
222
-
222
(358)
28
-
39
-
67
(71)
131
-
653
-
784
1,166

d Charges for charitable activities

Parochial fees General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
283
-
-
-
283
391
283
-
-
-
283
391

e Other trading activities

Rental income (non-investment
properties)
Recharged payroll costs
Training
DBE (Proceeds of St Barts bungalow)
Sundry income		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
217
-
-
-
217
200
144
-
-
-
144
146
1
-
-
-
1
5
-
-
-
-
-
141
44
1
-
-
45
119
406
1
-
-
407
611

f Investments

f
Investments
Glebe property income
Unlisted securities
Bank and deposit interest
Other property income		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
-
-
-
1,410
1,410
1,379
110
2
19
930
1,061
1,130
81
-
-
-
81
15
4
-
-
17
21
17
195
2
19
2,357
2,573
2,541

g Surplus of sale of assets

Surplus on sale of properties General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
-
151
-
-
151
364
-
151
-
-
151
364

35

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

5. Analysis of expenditure

a Raising funds

.
Analysis of expenditure
a
Raising funds
Glebe operating costs
Glebe management fees
Parsonage rental costs
Support costs		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
-
-
-
163
163
145
-
-
-
61
61
59
38
-
-
-
38
76
254
-
-
-
254
233
292
-
-
224
516
513

b Mission and ministry

b
Mission and ministry
Clergy stipends costs (see note 9)
Curates stipends costs (see note 9)
Clergy housing
Clergy appointment & retirement
costs
Staff and other funded costs
Fees to retired stipendiary clergy
Other clergy diocesan expenses
Support costs		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
74
-
3,536
-
3,610
3,766
981
-
-
-
981
761
1,612
-
-
-
1,612
2,050
136
-
23
-
159
185
329
-
-
-
329
148
36
-
-
-
36
33
42
-
-
-
42
81
291
-
4
-
295
250
3,501
-
3,563
-
7,064
7,273

c Support for mission and ministry

Department costs
Staff and other funded costs
Grants (see note 7)
Churches closed for public worship
Support costs		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
137
10
233
-
380
195
837
31
359
-
1,227
939
366
257
(180)
-
443
1,607
17
-
-
-
17
9
937
2
2
-
941
857
2,294
300
415
-
3,009
3,607

d Contributions to Archbishops’ Council

Training for ministry
National Church Responsibilities
Grants and provisions
Mission agencies’ pension costs
Retired clergy housing & other costs
Pooling of candidates’ costs		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023
Total
£000s
2022
Total
£000s
112
-
312
-
424
249
135
-
-
-
135
142
24
-
-
-
24
20
7
-
-
-
7
10
92
-
-
-
92
87
-
-
-
-
-
-
370
-
312
-
682
508

36

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

e Diocesan Board of Education
General Designated Restricted Endowment 2023 2022
Fund £000s funds funds funds £000s Total Total
£000s £000s £000s £000s
Grants (see note 7) 199 - - - 199 127
Support costs 33 - - - 33 28
232 - - - 232 155
f Other
General Designated Restricted Endowment 2023 2022
Fund £000s funds funds funds £000s Total Total
£000s £000s £000s £000s
DBE (proceeds of St Barts bungalow) - 141 - - 141
Other 1 - 7 - 8
1 141 7 - 149 -
6. Analysis and allocation of support costs
Raising Ministry & Support for Education 2023 2022
funds mission ministry & £000s Total Total
£000s £000s mission £000s £000s
£000s
Governance, management & finance
Staff and other funded costs 143 61 283 32 519 425
Other costs 38 26 145 1 210 307
Office
Staff and other funded costs 27 169 260 - 456 369
Other costs 47 30 244 - 321 266
255 286 932 33 1,506 1,368

37

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

7. Grants awarded

.
Grants awarded
To parishes and other organisations in the Diocese
Mission and ministry in parishes
Mission to Lowest Income Communities grants
Diocesan Mission Fund grants to parishes
Hardship Fund
Bishop’s Mission Fund grants to parishes
Block Grant
Urban Church Plants
Strategic Development Fund
Other grants to parishes
Church land and buildings
Church Improvement Fund grants for ten churches (2022: ten churches)
City Church grants
Church Fabric Fund grants for four churches (2022: four churches)
CIF Net Zero grants
Other organisations in the Diocese
Coventry Diocesan Board of Education
Together for Change
Coventry Cathedral
To other institutions
Syrian Orthodox Christian School
To individuals
For support of ordinands in ministerial training
Other grants to clergy and readers
Lay retreat grants		 2023 Total
£000s
2022 Total
£000s
(231)
320
48
47
(170)
391
2
-
40
201
74
37
-
29
68
44
55
30
-
30
92
37
105
-
199
127
33
30
143
158
458
1,481
11
-
11
-
147
208
23
44
3
-
173
252
642
1,733
Summarised by fund type:
Support for mission and ministry
Mission and ministry in parishes
Church land and buildings
Other organisations in the Diocese
Other institutions
Individuals
Diocesan Board of Education
Other organisations in the Diocese		 General Fund
£000s
Designated
funds £000s
Restricted
funds £000s
2023 Total
£000s
2022 Total
£000s
19
5
(193)
(169)
1,069
-
252
-
252
97
176
-
-
176
188
-
-
11
11
-
171
-
2
173
252
366
257
(180)
443
1,606
199
-
-
199
127
199
-
-
199
127
565
257
(180)
642
1,733

8. Trustees’ emoluments and expenses

None of the trustees received any emoluments from the DBF for services performed as directors (2022: £nil).

The parochial clerical members who are trustees of the DBF and the archdeacons are in receipt of a stipend, housing and other payments made to clergy paid by the DBF by virtue of their office. The DBF provides housing for the Suffragan

38

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

Bishop by virtue of their office.

No trustees received travel expenses related to activity as trustees of the DBF (2022: nil). Three trustees received a total of £1,865.15 in the year for travel and other expenses in connection with their membership of the General Synod of the Church of England, membership of which is not connected with their membership of the Board (2022: two and £861). Ten trustees received a total of £477,348.07 in connection with other offices held in the Diocese (2022: Fourteen and £493,192). These amounts were for stipends, accrued pension benefits, housing, expenses and sundry grants for resettlement and ministerial development.

9. Clergy headcount and costs

The average full time equivalent number of stipendiary clergy who were office holders in the Diocese was 111 (2022: 108); this included two (2022: two) archdeacons.

Stipends
Social security costs
Pension contributions		 2023 Total
£000s
2022 Total
£000s
3,497
3,138
291
268
872
1,121
4,660
4,527

10. Staff headcount and costs

The Diocese’s preferred method for reporting headcount is by an average of full time equivalents.

a Staff numbers based on an average of full time equivalent

Staff employed directly:
Mission and ministry
Support for mission and ministry
Central support
Staff employed via third parties
Support for mission and ministry
Central support		 2023
2022
10
11
20
19
11
11
41
41
-
-
1
2
42
43

b Staff numbers based on headcount

Staff employed directly:
Mission and ministry
Support for mission and ministry
Central support
Staff employed via third parties
Support for mission and ministry
Central support		 2023 Headcount
2022 Headcount
11
12
22
21
13
13
46
47
-
-
1
2
47
49

39

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

c Staff costs

c
Staff costs
Staff employed directly:
Salaries
Social security costs
Pension contributions
Staff employed via third parties
For service in the year		 2023 Total
£000s
2022 Total
£000s
1,617
1,510
182
150
146
140
1,945
1,800
152
87
2,097
1,887

The number of employees whose total remuneration amounted to over £60,000 in the year was as follows:

2023 Headcount 2022 Headcount
£80,001 to £90,000 2 -
£70,001 to £80,000 1 1
£60,001 to £70,000 2 1

11. Tangible fixed assets

1. Tangible fixed assets
Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Charge for year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Parsonages
£000s
Glebe
houses
£000s
Operational
properties
£000s
Diocesan
offices
£000s
Office
equipment
£000s
Total
£000s
6,219
928
11,198
846
293
19,484
-
-
491
-
21
512
-
-
(237)
-
-
(237)
6,219
928
11,452
846
314
19,759
-
-
-
-
240
240
-
-
-
-
25
25
-
-
-
-
265
265
6,219
928
11,452
846
49
19,494
6,219
928
11,198
846
53
19,244

All tangible fixed assets were used for direct charitable purposes.

12. Fixed asset investments

2. Fixed asset investments
Fair value at 1 January 2023
Additions at cost
Disposals at cost
(Losses)/Gains on revaluation
Fair value at 31 December 2023		 Glebe properties
£000s
Unlisted
investments
£000s
Total
£000s
33,451
35,374
68,825
-
-
-
-
-
-
285
3,328
3,613
33,736
38,702
72,438

40

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

13. Debtors

13. Debtors
2023 Total 2022 Total
£000s £000s
Glebe agents 414 471
Accrued grant income due within one year 1,494 1,614
Prepayments and accrued other income 118 57
CCLA dividend income accrued 262 261
Other debtors 152 229
2,440 2,632
14. Creditors: amounts falling due within one year
13. Debtors
Glebe agents
Accrued grant income due within one year
Prepayments and accrued other income
CCLA dividend income accrued
Other debtors
14. Creditors: amounts falling due within one year		 2023 Total
£000s
2022 Total
£000s
414
471
1,494
1,614
118
57
262
261
152
229
2,440
2,632
2023 Total
£000s
2022 Total
£000s
Trade creditors
392
423
Grant payment accruals
413
627
Other accruals
204
196
Deferred income
386
170
Taxation and social security
85
132
Pension deficit
-
62
Pension contributions payable
91
91
1,571
1,701
15. Creditors: amounts falling due after more than one year
2023 Total
£000s
2022 Total
£000s
Pension liability (see note 2)
-
-
Grant payment accruals
-
-
-
-		 2023 Total
£000s
2022 Total
£000s
392
423
413
627
204
196
386
170
85
132
-
62
91
91
1,571
1,701
-
-

41

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

16. Statement of funds

6. Statement of funds
GENERAL FUND
DESIGNATED FUNDS
Operational Properties Fund
Cathedral “Endowment” Fund
Bishop’s Mission Fund
Extra Mission & Ministry Support Fund
Diocesan Mission Fund
Church Fabric Fund
Church Improvement Fund
Bishop of Coventry’s Link Dioceses Fund
Lambeth Conference Fund
Special Projects 2020
Clergy Holidays Fund
Diocesan Board of Education
CIF-NZ (Net Zero)
Property (Net Zero) Pilot
Total designated funds
Total unrestricted funds
RESTRICTED FUNDS
Serving Christ Fund
Mission to Lowest Income Communities
Fund
Church Commissioners’ Mission Fund
LINC DMF Fund
LINC NCD Fund
LINC CGDA Fund
LINC Stipends Fund
LINC Growth Strategy
Strategic Development Fund
Places of Peace Fund
Offa Capital Projects Fund
Offa Spiritual Renewal Fund
Syrian Orthodox Christian School Fund
SOCS Scholarship Fund
Companionship Link Funds
Retreat Grants Fund
The Reverend George Goode Fund
Ordination Training Grant Fund
DC Bonfield Bequest
Archdeacons’ Discretionary Fund
Queen Victoria Clergy Fund
Diocesan Stipends Fund Income Account
Capacity Funding
Acceler8
EE BardsleyBequest Fund		 At 1 Jan
2023
£000s
Income
£000s
Expenditure
£000s
Transfers
£000s
Gains and
(losses)
£000s
At 31
December
2023
£000s
1,660
6,440
(6,690)
291
582
2,283
11,507
151
-
-
-
11,658
5,000
-
-
-
-
5,000
35
-
(2)
1
-
34
107
-
(32)
-
-
75
24
-
(12)
82
-
94
9
-
(92)
85
-
2
17
-
(59)
68
-
26
5
1
(2)
-
-
4
20
-
-
-
-
20
20
-
-
-
-
20
129
2
-
1
11
143
141
-
(141)
-
-
-
-
-
(100)
100
-
-
80
80
17,014
154
(440)
417
11
17,156
18,674
6,594
(7,130)
708
593
19,439
252
256
(311)
-
-
197
510
468
142
(615)
-
505
2
-
(26)
26
-
2
24
-
(54)
30
-
-
13
-
-
-
-
13
11
-
3
(2)
-
12
4
-
-
-
-
4
499
-
(259)
195
-
435
1,250
-
(115)
(185)
-
950
7
-
-
-
-
7
253
-
(23)
-
-
230
1,307
18
(4)
-
17
1,338
9
-
(10)
6
-
5
1
-
(1)
-
-
-
1
5
(5)
-
-
1
13
-
(3)
1
-
11
15
-
-
-
-
15
203
236
(375)
(1)
-
63
59
-
-
-
-
59
45
1
(1)
1
4
50
5
5
(5)
-
-
5
-
-
(3,089)
5,092
-
2,003
103
92
(106)
(25)
-
64
-
6
-
(6)
-
-
-
-
(28)
28
-
-

42

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

16. Statement of funds – continued

Warwick Clergy Stipends & Housing Fund
NZ Grant 1
NZ Grant 2 Recruitment
Pastoral Fund
Ministry Hardship Fund
Parsonages Grant
Total restricted funds
ENDOWMENT FUNDS
Expendable:
Parsonage Houses Fund
Permanent:
Diocesan Stipends Fund Capital Account
Church of England Funded Pension Fund
Coventry Diocesan Endowment Fund
Total endowment funds
TOTAL FUNDS		 At 1 Jan
2023
£000s
Income
£000s
Expenditure
£000s
Transfers
£000s
Gains and
(losses)
£000s
At 31
December
2023
£000s
-
190
(190)
-
-
-
-
-
-
15
-
15
-
91
(8)
-
-
83
-
-
-
-
-
-
-
-
171
(169)
-
2
-
7
-
(7)
-
-
4,586
1,375
(4,297)
4,384
21
6,069
6,218
-
-
-
-
6,218
63,834
2,340
(224)
(5,092)
2,927
63,785
-
-
-
-
-
-
784
17
(1)
-
72
872
70,836
2,357
(225)
(5,092)
2,999
70,875
94,096
10,326
(11,652)
-
3,613
96,383

17. Descriptions of Designated, Restricted and Endowment Funds

Designated Funds

Operational Properties Fund

This fund represents the cost of properties held for operational use by the DBF and by clergy not in parochial posts that otherwise would be held by the General Fund, including the houses occupied by the Suffragan Bishop and the archdeacons, but excluding Glebe houses for occupation by clergy, together with surplus cash from the sale of properties held for reinvestment in houses for curates and other clergy.

Cathedral “Endowment” Fund

With the loss of trading income for the Cathedral during the COVID 19 pandemic, the DBF intends to create a fund with a capital amount of £5m which is to remain under the control of the DBF. The income generated from the capital amount, currently invested with CCLA, will be granted on a quarterly basis to the Cathedral each year. It is expected that c£150k will be derived from these investments. This income can be used by the Cathedral on its normal running costs and in return the Cathedral will continue to provide Diocesan services, and work with parishes on the reconciliation ministry strategic objective across the Diocese. These funds can be undesignated, in agreement with the Cathedral, by the DBF in the future.

Bishop’s Mission Fund

This fund has been established to support specific mission projects sponsored by the Bishop of Coventry.

Extra Mission and Ministry Support Fund

This fund enables the DBF to give financial support to those providing ministry and mission.

Diocesan Mission Fund

The Diocesan Mission Fund was set up in 2009 and has been replenished to fund applications for mission support from parishes.

43

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

Church Fabric Fund

This fund is normally used to make fabric grants to churches.

Church Improvement Fund

This fund is used to make improvement grants to churches for their buildings with the aim of increasing mission effectiveness.

Bishop of Coventry’s Link Dioceses Fund

This fund is supported by transfers from the General Fund and relates to the Anglican Diocese of Kaduna and the Syrian Orthodox Diocese of Jerusalem.

Lambeth Conference Fund

This fund was set up in 2020 to support the Lambeth Conference, a national Anglican-communion event held in 2022

Special Projects 2020

This fund was established to support special projects in the Diocese of Coventry.

Clergy Holidays Fund

This fund receives interest arising from the capital on the past sale of a flat in Bournemouth and a bequest received in 2005. It is used by the Archdeacons to make holiday grants to clergy and licensed lay workers.

Diocesan Board of Education (DBE)

This fund was set up to transfer the proceeds of the sale of the site bungalow at St Bartholomew’s CofE Academy following the decision by the Diocesan Trustees to pay the proceeds to the CDBF with the intention of supporting the DBE.

CIF-NZ (Net Zero)

This fund was set up as part of the Church Improvement Fund to give grants to parishes for improving the facilities in their church buildings that demonstrate a reduction in carbon footprint.

Restricted Funds

Serving Christ Fund

This fund has been set up as a result of a grant awarded in 2017 by the Church Commissioners towards the costs of the Serving Christ project, an extension of the existing diocesan strategy of growing healthy churches. The project aims to increase significantly the capacity for growth in existing and emerging churches across the diocese of Coventry, and also Ebbsfleet parishes in other Dioceses, by a focus on discipleship development.

Mission to Lowest Income Communities Fund

This fund is for grants received from the Church Commissioners for mission to lowest income communities in the Diocese.

Church Commissioners’ Mission Fund

This fund represents additional funds given to the DBF by the Church Commissioners that have arisen as a result of better returns on their investment assets and may be used to support parochial ministry and mission.

LINC DMF Fund

This fund is drawn from the Lowest Income Communities Fund to award Diocesan Mission Fund grants to eligible parishes.

LINC NCD Fund

This fund is drawn from the Lowest Income Communities Fund to support the DBF’s healthy churches work and Natural Church Development (NCD) diagnostic survey tool.

LINC CGDA Fund

This fund is drawn from the Lowest Income Communities Fund for the DBF’s Church Growth in Deprived Areas project

LINC Stipends Fund

This fund is drawn from the Lowest Income Communities Fund for clergy stipends in the Church Urban Plants and

44

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

Mission Hubs that are in eligible parishes

LINC Growth Strategy

This fund is drawn from the Lowest Income Communities Fund to support the DBF’s missional growth work.

Strategic Development Fund

This fund represents monies released by the Church Commissioners to support major change projects which lead to a significant difference in dioceses’ mission. This includes the Church Urban Plants project.

Places of Peace Fund

A fund to support a youth work project and pilot which aimed to address the issue of youth violence in the city of Coventry.

Offa Capital Projects Fund

The Trustees and Bishop of Coventry have set this fund using the proceeds of the Offa House sale. The capital and income from this fund can be used to fund capital projects that support the spiritual development of the members of the church in the Diocese of Coventry.

Offa Spiritual Renewal Fund

This fund has been set up using the monies from the sale of Offa House. The capital and income from this fund is available to fund projects for children and or adults which develop their spirituality.

Syrian Orthodox Christian School Funds

The Mar Ephraim School is a Syrian Orthodox school that opened in Bethlehem in 2006. Donations to the main fund go to support the school and the Scholarship Fund is used to provide a bursary for a pupil. These funds were previously managed by Coventry Cathedral and were paid over to the DBF in December 2011.

Companionship Link Funds

These funds are funds raised to fund specific projects for the linked dioceses, including the Diocese of Kapsabet in Kenya.

Retreat Grants Fund

This fund was set up with funds donated by the company which managed the former retreat house, for retreat grants for lay people who are not licensed and who are communicant members of the Church of England within the Diocese of Coventry.

The Reverend George Goode Fund

This fund represents money held for training and supporting the ministry of Readers in the Diocese.

Ordination Training Grant Fund

This fund is for the block grant received from the Archbishop’s Council for training ordinands sponsored by the Diocese. The block grant is based on the number and age of ordinands sponsored by the Diocese and can only be used to fund training on Initial Ministerial Education Phase 1 pathways at accredited institutions approved by the Ministry Division of the Archbishops’ Council.

DC Bonfield Bequest and Ordination Candidates’ Fund

These funds enable the DBF to give financial support to those in training for the Ministry. The DC Bonfield Bequest funds came from the estate of Donald Charles Bonfield in 2006 and subsequent years.

Archdeacons’ Discretionary Fund and the Queen Victoria Clergy Fund

These funds enable the Archdeacons and the Bishop to give discretionary grants to those in Parochial Ministry in need.

Diocesan Stipends Fund Income Account

This fund consists of accumulated income balances subject to the Diocesan Stipends Fund Measure 1953. It receives income specifically for support of stipends, in particular Glebe rental income and investment income from the Diocesan Stipends Fund Capital Account and is charged with expenditure on Clergy stipends and the management and maintenance of Glebe property. The excess of expenditure over income is charged to the General Fund.

45

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

Capacity Funding

This fund has been set up as a result of a grant awarded in 2020 from the Church Commissioners to fund the first year of salary for the Programme Manager and the Director of New Worshipping Communities posts which form part of the Growth Strategy of the Diocese.

Acceler8

This fund has been set up as a result of a grant awarded in 2015 by the Church Commissioners towards the cost of a project to speed up the growth of churches across the diocese by improving their health in eight quality areas and by intentionally focusing on the 20s and 30s age range.

The following fund is still active but has a zero balance. There has been some activity during the year. EE Bardsley Bequest

These funds were received in 2005 and 2006 from the estate of the late Mrs Edith Bardsley, widow of the late Bishop Bardsley, for use by the Coventry Diocesan Board of Mission, of which the DBF is the successor. Both capital and income may be used.

Endowment Funds

Parsonage Houses Fund

This fund represents the capitalised value of clergy housing for which the DBF has responsibility for maintenance.

Diocesan Stipends Fund Capital Account

This fund represents the value of property and investments held under the Endowments and Glebe Measure 1976. Historically, these holdings were held at parish level for the benefit of individual clergy stipends, but since the Measure they have been managed at Diocesan level for the benefit of all clergy paid for by the DBF.

Coventry Diocesan Endowment Fund

This fund is established to produce income applied for the augmentation of stipends. The assets of the fund are held by the Diocesan Trustees as custodian trustees.

46

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

18. Total Return

At 1 January 2023
Gift component of the permanent endowment
Accumulated inflation since original gift
Accumulated net transfers brought forward
Unapplied total return
Prior year expenditure
Movements in the year
Transfers from Parsonages to Operational Properties
Investment return: property income, dividends and
interest
Investment expenditure: Glebe
Investment return: realized and unrealized gains and
losses
Indexation on base value of investment
Unapplied total return allocated to income in the year
Release of historic unapplied total return
Net movements in the year
At 31 December 2023
Gift component of the permanent endowment
Accumulated inflation since original gift
Accumulated net transfers brought forward
Unapplied total return		 Trust for
Investment
£000s
Unapplied Total
Return £000s
Total
£000s
14,984
-
14,984
9,049
-
9,049
(162)
-
(162)
-
40,420
40,420
23,871
40,420
64,291
-
(457)
(457)
23,871
39,963
63,834
-
-
-
-
2,340
2,340
-
(224)
(224)
-
2,927
2,927
599
(599)
-
599
4,444
5,043
-
(2,340)
(2,340)
-
(2,752)
(2,752)
-
(5,092)
(5,092)
599
(648)
(49)
14,984
-
14,984
9,648
-
9,648
(162)
-
(162)
-
39,315
39,315
24,470
39,315
63,785

Movements in the year reflect the pastoral order made for the creation of the new benefice, The Bridge Benefice, uniting 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 Operational Properties.

47

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

19. Transfer between funds

9.
Transfer between funds
NZ Grant 1
Church Fabric Fund
Church Improvement Fund
Capacity Funding
Diocesan Mission Fund
LINC DMF Fund
CIF-NZ (Net Zero)
LINC Growth Strategy
Mission to Lowest Income Communities Fund
Parsonage Grant
Ministry Hardship Fund
Diocesan Stipends Fund Capital Account
Property NZ Pilot Fund
LINC CGDA Fund
Retreat Grants Fund
Strategic Dev Fund/Urban Church Plant
Bishops Extra Mission and Ministry Support
Fund
Acceler8
Archdeacons’ Discretionary Fund
Syrian Orthodox Christian School Support
Fund
Clergy Holidays Fund
Church Commissioners’ Mission Fund
EE Bardsley Bequest Fund
Ordination Training Block Grant Fund		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023 Total
£000s
(15)
-
15
-
-
(85)
85
-
-
-
(68)
68
-
-
-
25
-
(25)
-
-
(82)
82
-
-
-
(30)
-
30
-
-
(100)
100
-
-
-
(195)
-
195
-
-
615
-
(615)
-
-
7
-
(7)
-
-
169
-
(169)
-
-

-
-
5,092
(5,092)
-
(80)
80
-
-
-
2
-
(2)
-
-
(1)
-
1
-
-
185
-
(185)
-
-
(1)
1
-
-
-
6
-
(6)
-
-
(1)
-
1
-
-
(6)
-
6
-
-
(1)
1
-
-
(26)
-
26
-
-
(28)
-
28
-
-
1
-
(1)
-
-
291
417
4,384
(5,092)
-

20. Analysis of net assets between funds

0. Analysis of net assets between fun ds
Funds at 31 December 2023 are represented
by:
Tangible fixed assets
Fixed asset investments
Net current assets
Total net assets		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2023 Total
£000s
49
12,298
-
7,147
19,494
5,484
112
1,229
65,613
72,438
(3,250)
4,746
4,840
(1,885)
4,451
2,283
17,156
6,069
70,875
96,383

48

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

21. Related party transactions

The Coventry Diocesan Board of Education (the DBE) is a related party as it is responsible to Diocesan Synod, the members of which are also the members of the DBF. The DBF provided the DBE with grants of £159,000 (2022: £187,000) in the year towards the costs of the DBE’s statutory obligations.

The Coventry Diocesan Trustees (Registered) (the CDT) is a related party as it is the custodian trustee of the Coventry Diocesan Endowment Fund and a residential property. Income received from the Diocesan Trustees during the year for the Diocesan Stipends Fund Income Account was:

Coventry Diocesan Endowment Fund £22,860 (2022: £16,959) Residential property £4,222 (2022: £2,831)

Costs incurred by the DBF on behalf of the Diocesan Trustees were £25,350 (2022: £25,350). These costs were for secretarial support and accounts preparation fees.

Together for Change (TFC) is a partner charity supported by the DBF and the Church Urban Fund. Costs incurred by the DBF as part of this partnership include the supply of a Chief Executive Officer, office and IT provision, and finance and HR services. Grants of £33,000 were awarded in the year (2022: £30,000).

There were £250 other related transactions during the year with the company Potential Plus. The transaction related to Curates training services provided by Sarah Jackson who is a Director/Owner of Potential Plus and the wife of Barry Jackson, Trustee.

49

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

22. Prior year Statement of Financial Activities

Income and endowments from:
Donations
Parish Share
Church Commissioners
Other grants and donations
Charges for charitable activities
Other trading activities
Investments
Investments income
Total return allocated to income
Release of historic return
Surplus on sale of assets
Total
Expenditure on:
Raising funds
Charitable activities
Mission and ministry
Support for mission and ministry
Contributions to Archbishop’s
Council
Diocesan Board of Education
Total
Net income/ (expenditure) before
investment
Net gains /(losses) on investments
Net losses on revaluation
Surplus on sale of investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Gains on revaluation of fixed assets
Actuarial gains on defined benefit
pension scheme
Net movement in funds
Reconciliation of funds
Funds at 1 January
Net movement in funds
Funds at 31 December		 General
Fund £000s
Designated
funds £000s
Restricted
funds £000s
Endowment
funds £000s
2022 Total
£000s
4,670
-
107
-
4,777
177
-
1,108
-
1,285
43
-
1,123
-
1,166
391
-
-
-
391
470
141
-
-
611
-
70
8
34
2,429
2,541
-
-
2,429
(2,429)
-
-
-
2,111
(2,111)
-
-
364
-
-
364
5,821
513
6,912
(2,111)
11,135
309
-
-
202
511
3,480
-
3,793
-
7,273
2,280
74
1,254
-
3,608
508
-
-
-
508
155
-
-
-
155
6,732
74
5,047
202
12,056
(912)
439
1,865
(2,313)
(921)
(284)
(15)
(162)
(4,064)
(4,525)
-
-
-
-
-
(1,196)
424
1,703
(6,377)
(5,446)
825
499
(1,322)
(2)
-
-
-
-
-
-
-
203
203
(371)
923
381
(6,176)
(5,243)
2,027
16,094
4,205
77,013
99,339
(371)
923
381
(6,176)
(5,243)
1,656
17,015
4,586
70,835
94,096

50

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

23. Prior year Statement of Funds

3. Prior year Statement of Funds
GENERAL FUND
DESIGNATED FUNDS
Operational Properties Fund
Cathedral “Endowment” Fund
Bishop’s Mission Fund
Extra Mission & Ministry Support Fund
Diocesan Mission Fund
Church Fabric Fund
Church Improvement Fund
Bishop of Coventry’s Link Dioceses Fund
Lambeth Conference Fund
Special Projects 2020
Clergy Holidays Fund
Diocesan Board of Education
Total designated funds
Total unrestricted funds
RESTRICTED FUNDS
Serving Christ Fund
Mission to Lowest Income Communities
Fund
Church Commissioners’ Mission Fund
LINC DMF Fund
LINC NCD Fund
LINC CGDA Fund
LINC Stipends Fund
LINC Growth Strategy
Strategic Development Fund
Places of Peace Fund
Offa Capital Projects Fund
Offa Spiritual Renewal Fund
Syrian Orthodox Christian School Fund
SOCS Scholarship Fund
Companionship Link Funds
Retreat Grants Fund
The Reverend George Goode Fund
Ordination Training Grant Fund
DC Bonfield Bequest
Ordination Candidates’ Fund
Archdeacons’ Discretionary Fund
Queen Victoria Clergy Fund
Diocesan Stipends Fund Income Account
Capacity Funding
Deanery Share Support Fund
Warwick Clergy Stipends & Housing Fund
Ministry Hardship/PCC Energy Fund
Total restricted funds		 At 1 Jan
2022
£000s
Income
£000s
Expenditure
£000s
Transfer
s £000s
Gains and
(losses)
£000s
At 31
December
2022
£000s
2,027
5,821
(6,732)
825
(284)
1,657
11,143
364
-
-
-
11,507
4,500
-
-
500
-
5,000
31
4
-
-
-
35
106
1
-
-
-
107
35
1
(33)
21
-
24
54
-
(38)
(7)
-
9
40
-
(7)
(15)
-
18
5
-
-
-
-
5
20
-
-
-
-
20
20
-
-
-
-
20
141
3
-
-
(15)
129
-
141
-
-
-
141
16,094
514
(78)
499
(15)
17,014
18,121
6,335
(6,810)
1,324
(299)
18,671
882
(358)
(336)
63
-
251
583
412
(186)
(300)
-
509
2
-
-
-
-
2
(1)
-
(11)
36
-
24
13
-
-
-
-
13
14
-
(3)
-
-
11
4
-
-
-
-
4
300
-
(102)
300
-
498
-
1,250
-
-
-
1,250
7
-
-
-
-
7
283
3
-
(33)
-
253
1,485
28
-
-
(156)
1,307
11
4
-
(6)
-
9
1
-
-
-
-
1
2
-
(1)
-
-
1
17
-
(4)
-
-
13
15
-
-
-
-
15
17
387
(201)
-
-
203
58
1
-
-
-
59
-
-
-
-
-
-
53
1
(3)
-
(6)
45
5
-
-
-
-
5
331
-
(3,459)
3,128
-
-
170
-
(14)
(53)
-
103
-
107
(107)
-
-
-
-
227
(227)
-
-
-
-
309
(392)
83
-
-
4,205
2,371
(5,046)
3,218
(162)
4,586

51

COVENTRY DIOCESAN BOARD OF FINANCE LIMITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

23. Prior year Statement of Funds - continued

ENDOWMENT FUNDS
Expendable:
Parsonage Houses Fund
Permanent:
Diocesan Stipends Fund Capital Account
Church of England Funded Pension Fund
Coventry Diocesan Endowment Fund
Total endowment funds
TOTAL FUNDS		 At 1 Jan
2022
£000s
Income
£000s
Expenditure
£000s
Transfer
s £000s
Gains and
(losses)
£000s
At 31
December
2022
£000s
6,218
-
-
-
-
6,218
70,132
2,409
(203)
(4,540)
(3,963)
63,835
(201)
-
-
(2)
203
-
865
20
-
-
(101)
784
77,013
2,429
(203)
(4,542)
(3,861)
70,836
99,339
11,135
(12,056)
-
(4,322)
94,096

24. Prior year Analysis of net assets between funds

Funds at 31 December 2022 are represented
by:
Tangible fixed assets
Fixed asset investments
Net current assets
Creditors falling due after more than one
year
Total net assets		 General
Fund £000s
Designated
funds
£000s
Restricted
funds
£000s
Endowment
funds £000s
2022 Total
£000s
53
12,044
7,147
19,244
2,156
112
1,229
65,328
68,825
(549)
4,858
3,357
(1,639)
6,027
-
1,660
17,014
4,586
70,836
94,096

52