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2021-12-31-accounts

Oxford Diocesan Board of Finance

Directors’ Report and Financial Statements For the year ended 31 December 2021

Company limited by guarantee (No. 142978 England and Wales)

Registered charity (No. 247954)

Registered & Principal Office: Church House Oxford Langford Locks Kidlington Oxford OX5 1GF

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

Table of Contents

able of Contents
Page
Directors’ Annual Report 2
Legal Objects 2
Strategic Aims and Objectives 2
Environment, Social and Governance 3
Achievements and Performance in the Year 4
Future Plans 8
Financial Review 9
Principal Risks and Uncertainties 12
Structure, Governance and Management 13
Administrative Details 20
Independent Auditor’s Report 23
Statement of Financial Activities 28
Income and Expenditure Account 29
Balance Sheet 30
Statement of Cash Flows 31
Notes to the Financial Statements 32

Key to abbreviations:

CBF Central Board of Finance ODBE Oxford Diocesan Board of Education
CEFPS Church of England Funded Pension Scheme ODBF Oxford Diocesan Board of Finance
CEPB Church of England Pensions Board ODBST Oxford Diocesan Bucks Schools Trust
CSUST Church Schools Uniform Statutory Trust ODST Oxford Diocesan Schools Trust
CPI Consumer Price Inflation PACT Parents and Children Together
DAC Diocesan Advisory Committee PCC Parochial Church Council
DT(O)L Diocesan Trustees (Oxford) Limited RPI Retail Price Index
EIG Ecclesiastical Insurance Group SOFA Statement of Financial Activities
ESG Environment, Social & Governance SORP Statement of Recommended Practice
FRS Financial Reporting Standard UKME United Kingdom Minority Ethnic
ICV Initial Carrying Value
LPI Limited Price Index
MPC Mission & Pastoral Committee

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

DIRECTORS’ ANNUAL REPORT

The directors, who are also trustees for the purposes of charity law, present their annual report, together with the audited financial statements, for the year ended 31 December 2021.

The directors and trustees are one and the same and in signing as trustees of the charity they are also signing the strategic report sections in their capacity as company directors.

This combined report satisfies the legal requirements for:

LEGAL OBJECTS

The objects of the ODBF are to benefit the public by promoting and assisting the mission and other work of the Church of England in and beyond the boundaries of the Diocese of Oxford by raising, collecting and expending funds in connection with:

ODBF also incorporates the functions and responsibilities of the Diocesan Parsonages Board.

The role of Diocesan Authority for parochial and other trusts is carried out by DT(O)L, a separate charitable company resourced by ODBF.

STRATEGIC REPORT - STRATEGIC AIMS AND OBJECTIVES

The Diocese promotes the work and purposes of the Church of England for the advancement of the Christian religion in the Diocese of Oxford and elsewhere. Together, we are the Church, called and sent by God as disciples of Jesus Christ and filled with the Holy Spirit. We are a living, growing network of more than a thousand congregations, chaplaincies and schools. The strategy and approach of the Diocese is described as ‘a common vision for a more Christ-like Church: contemplative, compassionate and courageous for the sake of God’s world’.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRATEGIC REPORT - STRATEGIC AIMS AND OBJECTIVES (Cont’d)

To support these aims the main role of the ODBF is to identify and manage the financial aspects of the provision of mission and ministry within the Diocese so as to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop’s Council, deaneries and parishes to further the Christian mission and strategic priorities in the Diocese.

The aims and objectives are largely achieved by providing:

ENVIRONMENT, SOCIAL AND GOVERNANCE

We remain committed to working towards net carbon zero by 2035. Following the Church of England decision in 2020 that parishes, church schools and DBF property would be ‘in scope’, work is underway in all three areas. In particular, in 2021 an environment survey of all our vicarages was carried out. The results have been reviewed in early 2022 and a proposed programme of works will be discussed at Bishop’s Council in May 2022.

During 2020 a social investment working group considered how some of the diocese’s glebe assets could be used to recognise the social needs of our communities. The group focused its work on housing. In particular, the need for social housing across the diocese has been estimated at twenty times what is available. Bishop’s Council expressed its willingness in December 2020 for up to £5 million to be invested in developments which will predominantly be available for social housing. Potential housing developments have been identified in 2021 where this could be applied and a possible initial development is under consideration in 2022.

We remain strongly committed to social justice and to community organising as a means of communities coming up with solutions themselves. In Autumn 2021 we published our initial work under the poverty and inequality focus area.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ENVIRONMENT, SOCIAL AND GOVERNANCE (Cont’d)

Our Investment Committee receives at each meeting, and discusses with our investment managers, an ESG report on our investment portfolio. The most recent report highlights the following ESG aspects:

ACHIEVEMENTS AND PERFORMANCE IN THE YEAR

Covid-19

2021 has been significantly dominated by the continued impact of Covid-19. Covid-19 updates were issued widely across the diocese whenever there was any information or guidance to share; they were received very positively and attracted a very high open-rate. The diocese has sought to communicate a measured approach, supporting parishes in local decision-making wherever possible.

We again experienced difficulties in carrying out the work to clergy properties that we intended to do. This was principally due to a shortage of contractors and raw materials. There was hesitancy or impracticability in doing work during the lockdown at the start of the year.

Common Vision

The implications of Covid-19 are profound for us as a nation and as a Diocese and we are committed to adapting, strategically and financially, to how we can best serve and equip our parishes, schools and chaplaincies to be a more Christ-like Church in that new context. The crisis has brought major challenges and suffering, but also some opportunities and we are reflecting carefully on them all as we discern together with the clergy and lay people of the Diocese what it means to be contemplative, compassionate and courageous in a post-Covid-19 world.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE IN THE YEAR (Cont’d)

It is set out below what was planned for 2021 and what ODBF, through its staff and volunteers, achieved during the year:

1. Environmental action

Bishop Olivia joined COP26, in Glasgow, in November, representing the Church of England’s and diocese’s commitment to environmental action. Progressing towards our target of net zero by 2035, over 400 parsonage house energy audits took place and the number of churches registered as an Eco Church with A Rocha rose to 15%. We launched brand new Be the Change resources for children and young people in our schools and churches to help them take action on climate change.

2. Growing new congregations

We celebrated the launch of revitalisations at Reading Gateway Church from Greyfriars, Reading, Whaddon Way from St Mary’s, Bletchley in Milton Keynes, and St Peter’s Church in north Aylesbury. They seek to renew an existing church by grafting leadership, people and resources into them.

In June, the Intercultural Mission Resourcing Hub launched at St Paul’s, Slough, supporting and mentoring churches across the diocese to nurture new intercultural worshipping communities in their own contexts.

3. Schools, Children and Young People

Space Makers Contemplative Toolkit was launched in September with over a third of our schools taking part in training. New chaplaincies were also established in five secondary schools and three primary schools, and new links were formed with two FE colleges.

The embedding of the reshaped Discipleship Enabler roles within each archdeaconry team has enabled us to provide resources and tailored support specific to the needs of each area and to develop new and good relationships with parishes.

4. Poverty and inequality

Addressing Poverty and Inequality was published in November telling the story of poverty and inequality in a wide range of community and church contexts across the diocese. Findings from this will guide future diocesan support for parishes who are working to alleviate poverty in their contexts.

In December, the ODBF became a Fairwork partner, helping to champion a fairer jobs platform, transform the gig economy, and reaffirm our commitment to addressing poverty and inequality

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE IN THE YEAR (Cont’d)

5. Diversity and Inclusion

A Diversity Hub was formed within the Department of Mission and Ministry to enable collaborative working and achieve greater diversity and inclusion across all areas of work in the diocese. Most recently a new Chaplain among the deaf community was appointed.

We welcomed our first UKME Development Enabler working to embed racial justice in all areas of the diocese. A new UKME Clergy Chapter was formed and UKME oversight group, chaired by Bishop Steven.

6. Development Fund

In 2021, the Development Fund awarded 45 grants to parishes across the diocese amounting to £856k for a range of missionally creative initiatives such as the provision of basic facilities, the recruitment of new church and parish staff, the construction of community centres, youth engagement projects, and projects serving food to local people in need.

Ongoing operations

As part of our normal business, we said that we would:

We engaged regularly with clergy and parishes on the challenges being faced and in late 2021 Bishop Steven started a programme under which he will visit every deanery over a 12 month period to listen to the experiences of clergy in a Chapter meeting and then lay people. Support was provided to parishes throughout the year both proactively and reactively by the area teams and Church House staff.

As regards finance, we continued to make expenditure savings where possible. Savings were made in staff and IT costs and recommended clergy interregna periods were usually 12 months to protect the stipends and rental accounts at a time when we were otherwise experiencing lower clergy vacancies than budgeted. We kept in close touch with deaneries and parishes about the financial impact of the pandemic on parish share and again altered the deadlines for rebates. We remain extremely grateful for the work of our Parishes in achieving their Parish Share allocations. 2021 saw a 93.2% recovery, which is remarkable in the Covid-related circumstance.

Over 1,000 people took part in Come and See in 2021 and more than 200 church leaders used the resource with their congregations. Our network of Personal Discipleship Plan encouragers continued to grow with more than 500 people trained and we expanded the initiative working with the National Church to lead and develop a brand new Everyday Faith Portal.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE IN THE YEAR (Cont’d)

The department’s new senior leadership team has worked to ensure greater coherence and listening so that the refocused department can be as impactful; and responsive as possible to the evolving needs of the diocese.

To ensure confidence in responding well to safeguarding concerns, the Diocesan Safeguarding Team was reorganised with a full-time dedicated caseworker for each archdeaconry and a new Head of Safeguarding appointed. Partnerships were made with Safe Spaces and thirty one: eight to boost signposting opportunities and out of hours support.

The Past Cases Review 2 was completed successfully with over 3,000 files reviewed. Recommendations will be published alongside the national report in spring 2022.

2021 saw the implementation of recommendations from the review of governance in 2020, ensuring diocesan governance is as effective as possible in supporting its mission. This created an improved transparency and accountability of committee activities, a streamlining of membership structures, a standardisation of committee terms of reference, and clearer and shorter reporting lines. Diversity of committee memberships remains a priority and has been aided by the establishment of an Appointments Committee.

This year saw the launch of new websites for both ODBE and (in January 2022) ODBF, alongside a complete review of our online content. The new sites are easier to navigate, feature a muchimproved search functionality, and host dedicated pages for various church roles, helping our ordained and lay leaders find exactly what they need, when they need it. A new members-only functionality on the ODBE site allows exclusive access to in-depth resources and bespoke support for our Services for Schools representatives.

Alongside the website, we are delighted to have grown our Instagram following to over 1,000 in 2021. The weekly eNews mailing is reaching 5,000 screens with updates from around the diocese each week and we provided two fully booked training sessions for our curates on how social media can help them in their mission and ministry.

Following an extensive tendering process, Newton Investment Managers were reappointed. The new accounting system went ‘live’ on 1 February 2022 and we played a leading role in enabling other Dioceses to consider implementing the same system. The Parish Share Review Group commenced its work in the autumn of 2021 and will report to Bishop’s Council in May 2022.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE IN THE YEAR (Cont’d)

At the end of December, Bishop’s Council expressed enormous appreciation to the Revd Canon John Tattersall LVO, who stepped down as Chair of the Diocesan Board of Finance after eight years of exemplary service, and we welcomed Sir Hector Sants as his successor at the beginning of January.

FUTURE PLANS

In addition to all the work operationally required and delivered from year to year, we plan in 2022:

  1. To continue to provide leadership and support across the Diocese that is realistic about the challenges as well as opportunities as we emerge from Covid-19.

  2. To deliver a helpful and well-received 2022 Clergy Conference, working through lament & healing moving towards returning to the centre of calling and being sent out, empowered by God.

  3. To enable and realise significant impact for the sake of the Diocese and God’s world through the focus areas of Common Vision and the Development Fund.

  4. To complete the Parish Share Review and make recommendations for change to Bishop’s Council & Diocesan Synod, for a 2023 implementation.

  5. To secure agreement for a costed programme for the first part of moving our property portfolio to net carbon zero by 2035, and to determine the related implementation strategy.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

FINANCIAL REVIEW

Financial Performance

The Statement of Financial Activities (SOFA) for the year shows net expenditure of £5.5M before investment and revaluation gains (2020: £3.8M net expenditure). Investment gains, property and pension revaluations totalling £48.6M resulted in an overall increase in funds of £43.1M (2020: £20.0M).

Glebe agricultural land decreased in value by £1M (including £0.9M disposal) and glebe listed investments increased in value due to market conditions, with a £15.4M unrealised gain as at 31 December 2021.

Revaluation gains were reduced by £43k due to the 2021 year end valuations of the staff and clergy defined benefit pension schemes. The housing market increased in 2021 and there was a 9.3% (£31M) increase in the value of properties in the year. (2020: 6% increase).

Total return accounting was adopted from 1 January 2018, with a 7% (£7.5M) withdrawal to income in 2021, including investment manager fees. This has enabled, an additional £3.9M to be transferred to support general funds and an additional £3.6M to be spent: £3.1M on Common Vision strategy and £0.5M on investment management costs. The money for Common Vision is held in a designated fund whilst plans are being implemented (see note 16c and note 22).

Income in the SOFA totalled £25.4M (2020: £26.1M), a decrease of £0.7M. Parish share, the money given by parishes to the Diocese to fund its mission and ministry, is the main income to the Diocese. Parish share income (net after rebates) totalled £18.6M (2020: £18.9M). Current year receipts before rebates fell by £0.4M from 2020 and 93.2% of apportioned share for the year was received (2020: 94.4%). The rate of increase in parish share for 2021 was set at 0% (2020: 1.75%). Income from donations include a grant of £232K (2020: £244k) from the All Churches Trust. The Diocese is most grateful for this grant which supported the work of the Parish Development Advisers and safeguarding training.

The implementation of total return accounting has meant that our investment managers no longer need to focus on maintaining dividend income, which saw a decline of £0.2M since last year. Restricted income from charitable activities increased by £23K for funding ordinand training received from Archbishops’ Council. Other income relating to endowment funds amounts to £34K, including £10k from surplus on disposal of properties.

2021 expenditure in the SOFA totalled £30.8M (2020: £29.9M), an increase of £0.9M after an adjustment of £12K (2020: £90K credit) relating to revaluation of the clergy pension scheme. When this and the prior year pension adjustment is excluded, costs increased by £1M. 2021 is the fourth year of expenditure on Common Vision, using the designated fund set aside from total return, and this totalled £3.1M, including Development Fund grants. £1M committed expenditure on Diocesan support grants for less wealthy dioceses is recognised in2021, including £0.25M paid in 2021 and £0.75M to be paid between 2022 and 2024.

Balance Sheet

Net assets totalling £523M (2020: £480M) consist principally of properties to house the clergy, valued at £350M, (2020: £319M) and glebe investments of £153M (2020: £136M) which are analysed in Note 16(b) and for which use of capital is restricted while the income, recognised on a total return basis, is

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

FINANCIAL REVIEW (Cont’d)

used to pay clergy stipends. Many of the remaining assets shown in the balance sheet are held as restricted funds, which cannot necessarily be used for the general purposes of the ODBF.

Investment performance

The majority of ODBF’s investments are in Glebe funds – the income from which (under the Endowment and Glebe Measure 1976) is required to be used towards the cost of paying stipends.

Agricultural, commercial, amenity and residential land and buildings were valued at £32.2M at 31 December 2021 (2020: £32.1M), see note 16b. Rents receivable amounted to £0.6M (2020: £0.6M).

Glebe listed investments are managed by Newton Investment Management. Glebe listed investment holdings were valued at £120M at 31 December 2021 (2020: £104M). Over the rolling year the portfolio has performed well, with a net of fees return of 17.2%.

Investment policies

Investment policy is delegated by the directors to the investment sub-committee, members of which make investment decisions after taking advice from professional investment advisers. ODBF’s investment policies are based on two general key principles:

From 1 January 2018 the Oxford Diocesan Board of Finance has adopted a total return approach to investments with regard to the Glebe listed investment portfolio. The initial value for implementing total return for investment was determined at 31 December 2000 and valued at £14.7M. This was the amount held in listed investments at that date. The unapplied total return was calculated as at the 1 January 2018 and valued at £14.9M as the increase above inflation in the value of these investments since the initial valuation, adjusted for the introduction of new investment in the portfolio following significant sales of glebe land which have taken place since 2008. Bishop’s Council voted in 2020 to include glebe land sales since 1 January 2018 totalling £15M within the unapplied total return calculation with effect from 1 January 2021. It also voted to apply the CPI inflation measure (backdated to 2000), rather than RPI, further increasing unapplied total return by £5.05m from 1 January 2021.

The directors sought advice from the company’s legal advisers and auditor before approving a withdrawal to income funds equivalent to 7% of the value of the Glebe funds in listed investments as at 1 January for each of the three years 2018 to 2021 and approved that this policy should be reviewed

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

FINANCIAL REVIEW (Cont’d)

thereafter. During 2021 the withdrawal to income funds from the unapplied total return was £7.5M (2020: £7.3M).

Glebe Investments

Glebe investments are held in equities, fixed interest securities and cash, agricultural land, commercial and residential land and buildings. The portfolio is reviewed by the Glebe Investment Sub-Committee at least twice a year to ensure that the total return on investments is maximised whilst maintaining an appropriate asset allocation balancing risk and returns.

The policy is to sell agricultural holdings with planning consent, as favourable opportunities arise, and to reinvest for a better rate of return.

Short Term Investments

These funds are available for use in the short term as required for working capital. Deposit Funds are held as deposits with the Central Board of Finance.

Reserves policy

Free reserves

ODBF has very substantial ongoing responsibilities including the remuneration of some 370 stipendiary clergy, the upkeep of some 458 houses and the employment of some 80 full time equivalent staff. It is considered that, to meet substantial outgoings, the target general reserves at 1 January each year should be equivalent to three months gross expenditure from general funds in the forthcoming year. At 31 December 2021, ODBF’s free reserves of £9.0M (2020: £9.8M) were equivalent to 3.2 months (2020: 3.2 months) of gross expenditure from general funds in the forthcoming year.

Tangible fixed assets property fund

This fund represents the net book value of the ODBF’s tangible fixed asset properties plus any specifically related debtors less loans drawn down to finance the purchase of those properties.

Designated funds

The directors may designate additional unrestricted funds to be retained for an agreed purpose where this is considered to be prudent. Such designated funds are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. A description of each fund together with the intended use of the fund is set out in note 22. At 31 December 2021 total designated funds were £7.2M (2020: £6.3M), with the growth due to the transfer of £3.1M to the designated fund for the Common Vision strategy. A new designated fund of £550K was created at 31 December 2021to provide funds for property related expenditure for 2022-2024, which would have otherwise been incurred during 2020 and 2021, but was deferred due to Covid-19 restrictions.

Restricted and endowment funds

As set out in note 21, ODBF holds and administers a large number of restricted and endowment funds, including the Diocesan stipends fund and the parsonage house fund. As at 31 December 2021

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

FINANCIAL REVIEW (Cont’d)

restricted funds totalled £2.3M (2020: £2.3M) and endowment funds totalled £422.9M (2020: £385.8M).

Grant making policy

Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry (see note 7). Grants are paid to other connected charities and to other projects that are in furtherance of ODBF’s charitable objectives. (See note 11).

Statement on raising funds

The charity raises funds through Parish Share and on occasions receives other donations and voluntary income. It aims always to achieve best practice in the way in which it communicates with Parochial Church Councils (PCCs), donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on PCCs, donors and supporters. It applies best practice to protect the data of individuals and never sells data and ensures that communication preferences can be changed at any time. The charity manages its own activities in respect to raising funds and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its activities for raising funds and to learn from them and improve its service. During the year, the charity received no formal complaints about its activities for raising funds.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk areas and the associated mitigation strategies are:

Significant under payment of Parish Share either following Covid-19 or linked to decisions within the wider Church mitigated by:

Current or historic safeguarding case of harm to children, young people or vulnerable adults resulting from inappropriate behaviour of a Church Officer mitigated by:

Centralisation of glebe funds directed by General Synod leads to serious loss of capital funds and total return on funds mitigated by:

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Summary Information about the structure of the Church of England

The Church of England is the established church and HM The Queen is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is a See under the care of a Bishop who is charged with the cure of souls of all the people within that geographical area. This charge is shared with priests within benefices and parishes which are sub-divisions of the Diocese.

The National Church has a General Synod comprised of ex-officio and elected representations from each Diocese and it agrees and lays before Parliament, Measures for the governance of the Church’s affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops’ Council has a coordinating role for work authorised by the Synod; the Church Commissioners manage the historic assets of the Church of England; and the Church of England Pensions Board administers the pension schemes for clergy and lay workers.

Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod. The Diocese of Oxford is itself divided into twenty-nine deaneries, each with its own Synod and within each parish there is a parochial church council which shares, with the parish priest, responsibility for the mission of the Church in that place.

Whilst each Diocese is a separate legal entity, with a clear responsibility for a specific geographical area, being part of the Church of England requires and enables each Diocese to seek support from and application for partnership with neighbouring Dioceses.

Organisational structure

Through an area scheme the Diocesan Bishop, the Bishop of Oxford, has delegated certain powers to the Bishops of Reading, Buckingham and Dorchester in relation to the archdeaconries of Berkshire, Buckinghamshire and Dorchester respectively. Each archdeaconry is subdivided into deaneries, there being a total of 29 deaneries across the Diocese, which are further subdivided into some 620 parishes.

The Diocese is governed by Standing Orders approved on 27 February 1988 and subsequent amendments, most recently in March 2021. Its statutory governing body is the Diocesan Synod, which is an elected body with representation from all parts of the Diocese. Membership consists of ex officio members, including the Bishops and Archdeacons, clergy members elected by the houses of clergy in Deanery Synods, lay persons elected by the houses of laity in Deanery Synods, up to five persons coopted by the house of clergy or the house of laity and a maximum of ten members nominated by the Diocesan Bishop. The Diocesan Synod normally meets three times a year, determines major policy matters and approves an annual budget.

Its role is also to act as a forum for discussion of Christian opinion, to advise the Bishop of Oxford on matters on which he may wish to consult, to deal with items referred by the General Synod of the Church of England or deanery synods, to make appointments to committees and to make provision for the financing of the Diocese. Many of Synod’s responsibilities have been delegated to the Bishop’s Council and Standing Committee.

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Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Company status

Oxford Diocesan Board of Finance (ODBF) was formed to manage the financial affairs and hold the assets of the Diocese. It was incorporated on 10 February 1916 as a company (No. 142978 England and Wales) limited by guarantee and its governing documents are the Memorandum and Articles of Association, which were most recently amended slightly in March 2021. ODBF is a registered charity (No. 247954).

Every member of Diocesan Synod is a member of ODBF and has a personal liability limited to £1 under their guarantee as members in the event of its being wound up. The members of the Standing Committee of Diocesan Synod and Bishop’s Council are ODBF’s Board of Directors.

Decision-making structure

Diocesan Synod has delegated the following functions to the Board of Directors:

The Board of Directors has delegated responsibility for the day-to-day management of ODBF to the Diocesan Secretary who is supported by a number of heads of departments and their staff.

Committee structure

Following a review of diocesan governance during 2021, the following structures were adopted.

There are a number of committees that, though not sub-committees of the Board, can influence the operations of the Board.

Diocesan responsibilities for education are carried out by ODBE, a charitable company limited by guarantee.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Committee structure (Cont’d)

Oxford Diocesan Board of Patronage , which is constituted under the provisions of the Patronage (Benefices) Measure 1986, is sole patron or joint patron of a number of benefices.

Partnership in World Mission , which promotes world Christian mission, particularly through partnership with mission agencies and the Church worldwide.

Diocesan Committee for Interfaith Concerns , which provides oversight and strategic input on interfaith matters, as required.

Bishop’s Council

The members of the Bishop’s Council are the Board of Directors. In 2021 Bishop’s Council consisted of 13 ex officio members, (including the Diocesan and Area Bishops and the four Archdeacons), 2 clerical and 3 lay members from each of the Berkshire, Buckingham and Dorchester archdeaconries, 2 clerical and 2 lay members from the Oxford archdeaconry, and 2 members nominated by the Diocesan Bishop.

The Bishop’s Council also acts as the Diocesan Mission and Pastoral Committee, which is responsible for the task of approving pastoral reorganisation taking account of available clergy numbers and making use of new patterns of ministry.

The Bishop’s Council as Board of Directors of ODBF has the following sub-committees:-

Buildings Committee , which is responsible for determining policy and making major decisions concerning the management of parsonage houses in each benefice, including setting the policy for buying, repairing, maintaining and disposing of all parsonage houses, team vicarages and houses owned by ODBF.

In 2021 there were four sub-committees dealing with the implementation of policy in the four Archdeaconries of Oxford, Berkshire, Dorchester and Buckinghamshire respectively.

Diocesan Advisory Committee , which advises on matters affecting churches and places of worship such as the granting of faculties, architecture, archaeology, art and the history of places of worship, the use and care of places of worship and their contents and the care of churchyards.

Finance Committee (previously the Planning and Budget Sub-Committee) , which is responsible for considering the financial affairs of the Diocese. Amongst other things, it draws up draft budgets for approval by the directors prior to submission to Diocesan Synod and monitors expenditure and income.

Glebe Committee , which is responsible for determining policy and making major decisions concerning the management of glebe property for the benefit of the Diocesan Stipends Fund of the Diocese and now reports to the Finance Committee.

The Investment Committee reviews the Diocesan Stipends Fund investment portfolio and reports directly to the Finance Committee.

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Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Committee structure (Cont’d)

Audit Committee , which is responsible for assisting the directors in the discharge of their responsibilities for accounting policies, financial reporting and internal control, including liaison with the auditors, reviewing and proposing auditors for appointment and review of risk registers.

Human Resources Panel , which is responsible for personnel issues concerning staff.

The Audit Committee also serves ODBE and DToL and the Human Resources Panel serves ODBE.

Safeguarding panel , is responsible for ensuring continuous improvement and ongoing best practice regarding safeguarding effectiveness.

Closed Churches Committee , oversees the process of church closure and identifies for those churches which are listed buildings or in conservation areas and which have been or are proposed to be closed, and to develop proposals for the future of these closed churches.

Common Vision Steering Group , provides strategic oversight, support and challenge for the Common Vision Programme.

Local Ministry Pathway , provides governance and oversight for the diocese’s internal ordained and lay ministry training programme.

Rural Advisory Group , to ensure the issues and concerns of the diocese’s rural church parishes are properly considered in the development and implementation of the Diocese of Oxford‘s plans, including its common vision strategy, for the Diocese.

Appointments Committee , all new appointments for DBF committees, where vacancies arise, go to the Appointments Committee for consideration and to make recommendations on prospective new members to Bishop’s Council, for their approval.

Appointment of directors

Directors were either appointed ex officio on the basis of their position or are elected as clerical or lay members from each of the four archdeaconries or nominated by the Bishop of Oxford. The ex officio members are the Bishops, Archdeacons, the Dean of Christ Church Cathedral, the President and Vice Presidents of the Diocesan Synod and the Chairman and Vice Chairman of the Board of Finance.

Directors are given induction training when first appointed and receive ongoing training, as appropriate.

Some senior staff supporting the Diocesan Secretary have job titles incorporating the title ‘Director’ but they are not directors of ODBF for the purpose of company law.

Directors’ responsibilities

The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.

16

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the net income and expenditure of the company for that period.

In preparing these financial statements, the directors are required to:

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

Related parties

PCCs and deaneries are able to influence the decision-making within the Board of Finance and at Diocesan Synod level through representations to those bodies and through the input of their Deanery Synods.

The accounts of PCCs and deaneries do not form part of these financial statements.

17

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Connected Charities

The directors consider the following to be connected charities:

The objectives of each organisation are congruent with ODBF’s objectives.

Public Benefit

The directors are aware of the Charity Commission’s guidance on public benefit and have regard to that guidance in their administration of the charity.

The directors believe that, by promoting the work of the Church of England in the Diocese of Oxford, it helps to promote the whole mission of the Church (pastoral, evangelistic, social and ecumenical) more effectively, both in the Diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by:

18

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont’d)

Statement of Disclosure to the Auditor

So far as each director is aware:

19

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ADMINISTRATIVE DETAILS

DIRECTORS

Members of the Bishop’s Council and Standing Committee of the Board of Finance are the directors of the Board. All have served throughout the year except for those who were appointed or resigned as indicated below. The following were the directors and trustees at the date of this report:

The Right Revd Dr S J Croft Sir H Sants fm 01/01/22 Mr P Barrett fm 07/10/2021 The Revd Canon Dr GB Bayliss The Revd Canon J V Binns fm 31/01/2022 Mr M N Burton The Ven J Chaffey The Right Revd GA Collins fm 28/02/2021 Mrs J Dziegiel

The Ven G C Elsmore The Ven J K French The Right Revd O Graham Ms G D Hamnett fm 25/11/2021 The Revd Canon R J Lamey Mr D Lillycrop fm 25/11/2021 Mr D M S Matovu fm 16/02/2022 The Revd D W McFarland fm 25/11/2021 The Revd D J Meakin Mr R G Merrylees fm 25/11/2021 The Revd J M Mintern fm 25/11/2021

Dr S Northover The Revd R A Peters fm 16/12/2021 Mr M Powell The Ven S Pullin Mrs S E Scane Mrs S F Scott fm 07/10/2021

Ex officio, Bishop of Oxford, President of Synod

Ex officio, Chairman ODBF Lay member, Archdeaconry of Berkshire Ex officio, Vice President of Synod

Clerical member, Archdeaconry of Buckingham Lay member, Archdeaconry of Berkshire Ex officio, Archdeaconry of Oxford Ex officio, Bishop of Dorchester

Lay member, Archdeaconry of Buckingham, became Ex officio, Vice Chairman ODBF from 13/11/2021

Ex officio, Archdeaconry of Buckingham Ex officio, Archdeaconry of Dorchester Ex officio, Bishop of Reading

Lay member, Archdeaconry of Oxford Clerical member, Archdeaconry of Berkshire Lay member, Archdeaconry of Buckingham Nominated by the Bishop of Oxford Clerical member, Archdeaconry of Oxford Clerical member, Archdeaconry of Buckingham Lay member, Archdeaconry of Buckingham Clerical member, Archdeaconry of Berkshire Lay member, Archdeaconry of Dorchester Clerical member, Archdeaconry of Dorchester Lay member, Archdeaconry of Dorchester Ex officio, Archdeaconry of Berkshire Nominated by the Bishop of Oxford Lay member, Archdeaconry of Dorchester

20

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

ADMINISTRATIVE DETAILS (Cont’d)

The Revd S E Sharp fm 16/12/2021 Clerical member, Archdeaconry of Dorchester Dr B Sollereder Nominated by the Bishiop of Oxford Mr J N Sykes Ex officio, Vice President of Synod Dr A Thomas-Betts Nominated by the Bishop of Oxford, became Lay member, Archdeaconry of Buckingham from 07/10/2021 The Right Revd Dr A T L Wilson Ex officio, Bishop of Buckingham

Directors who were not re-elected/resigned during the year or by the date of this report:

Dr A R Bell to 06/10/2021 Lay member, Archdeaconry of Buckingham The Revd Canon V Breed to 31/07/2021 Clerical member, Archdeaconry of Dorchester The Revd E K Denno to 31/07/2021 Clerical member, Archdeaconry of Oxford Ms C S Kallipetis to 31/07/2021 Lay member, Archdeaconry of Berkshire The Revd Dr T H Kuin Lawton to 31/07/2021 Clerical member, Archdeaconry of Dorchester The Revd C Messervy to 21/04/2021 Clerical member, Archdeaconry of Buckingham Prof J F Missenden to 06/10/2021 Lay member, Archdeaconry of Berkshire The Very Revd Prof. M Percy to 27/04/2022 Ex officio, Dean of Christ Church Cathedral The Revd M K J Smith to 06/10/2021 Clerical member, Archdeaconry of Berkshire The Revd Canon J H Tattersall to 31/12/2021 Ex officio, Chair ODBF Mr M H Waring to 31/07/2021 Lay member, Archdeaconry of Dorchester Mr A F Whittow to 31/07/2021 Lay member, Archdeaconry of Buckingham

Key Management Personnel

Key management personnel are deemed to be those having authority and responsibility for planning, directing and controlling the activities of ODBF. In addition to the directors of the company, key management personnel during 2021 comprised the Diocesan Secretary and Company Secretary, the Director of Mission & Ministry, the Director of Finance, the Director of Buildings, the Director of Human Resources & safeguarding and the Director of Communications.

None of the directors of the company received any remuneration connected with their role as key management personnel. Key management personnel employed by ODBF are remunerated at rates that are deemed appropriate for the level of skills and experience they bring to their roles and at a rate

21

Oxford Diocesan Board of Finance Directors, Report and Financial Statements For the Year Ended 31 December 2021 ADMINISTRATIVE DETAILS (Cont'd) commensurate with that of similar roles in comparable organisations. Remuneration is reviewed on an annual basis and approved by the company dirertors. Registered Office Bankers Church House Oxford, Langford Lock5, Kidlington, Oxford OX5 IGF Natwest Bank plc, 32 Cornmarket Street, Oxford, OXI 3EZ Buzzacott LLP, 130 Wood Street, London, EC2V 6DL Auditor Solicitors and Diocesan Registrar Investment advisers Newton Investment Management Ltd, The Bank of New York Mellon Centre. 160 Queen Victoria Street, London EC4V 4LA Carter Jonas, Anchor House, 269 Banbury Road, Oxford, OX2 7LL, 5idleys Chartered Surveyors, 6 King Edward Street, Oxford. OXI 4JL, and Bidwells, Seacourt Tower, West Way Oxford OX2 OJJ EIG, Beaufort House, Brunswick Road, Gloucester, GLI IJZ Winckworth Sherwood LLP, 2 Chawley Park, Cumnor Hill, Oxford OX2 9GG Glebe Agents Insurer5 In approving this directors, report, the directors are a150 approving the strategic report within their capacity as company dirertors. This directors, report, incorporating the strategic report, was approved by the direttors on 4 May 2022. By order of the directors Sir Hertor Sants Chair 22

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of Oxford Diocesan Board of Finance (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the notes to the financial statements including the principal 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 directors’ 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 directors with respect to going concern are described in the relevant sections of this report.

23

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

INDEPENDENT AUDITOR’S REPORT (Cont’d)

Other information

The directors are responsible for the other information. The other information comprises the information included in the Directors’ Report and Financial Statements, 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report including the strategic 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:

24

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

INDEPENDENT AUDITOR’S REPORT (Cont’d)

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement in the directors’ report, the directors 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 directors 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 directors 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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s r esp onsibilities 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

25

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

INDEPENDENT AUDITOR’S REPORT (Cont’d)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

26

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

INDEPENDENT AUDITOR’S REPORT (Cont’d)

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.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Date: 25 May 2022

27

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2021

Note
Income and Endowments from:
Donations
2
Charitable activities
3
Investments
4
Other sources
5
Total
Expenditure on:
Raising and managing funds
6
Charitable activities
7
Other property costs
8
Total
Net (expenditure)/income before
investment gains:
Net gains on investments
Net (expenditure)/income
Total Return transfer
14a
Net income/(expenditure) after Total
Return transfer
Other transfers
14b
Other recognised gains:
Gains on revaluation of tangible
fixed assets
15
(Losses)/Gains on defined
benefit pension scheme
25
Net movement in funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted Funds
General &
Designated
Funds
Tangible
Fixed Assets
Property
Fund
£’000
£’000
18,915
-
2,116
-
717
-
12
41
21,760
41
377
-
28,048
-
-
552
28,425
552
(6,665)
(511)
4
-
(6,661)
(511)
6,971
-
310
(511)
459
(392)
769
(903)
-
6,808
(729)
-
40
5,905
16,116
75,488
16,156
81,393		 Restricted
Funds
£’000
289
685
180
3
1,157
-
1,124
-
1,124
33
117
150
-
150
(67)
83
-
-
83
2,261
2,344		 Endowment
Funds
£’000
-
-
2,360
34
2,394
518
12
172
702
1,692
17,301
18,993
(6,971)
12,022
-
12,022
24,406
686
37,114
385,778
422,892		 Total
Funds
2021
£’000
19,204
2,801
3,257
90
25,352
895
29,184
724
30,803
(5,451)
17,422
11,971
-
11,971
-
11,971
31,214
(43)
43,142
479,643
522,785		 Total
Funds
2020
£’000
19,414
2,381
3,471
799
26,065
796
28,590
476
29,862
(3,797)
6,187
2,390
-
2,390
-
2,390
16,328
1,359
20,077
459,566
479,643

All activities derive from continuing activities. The notes on pages 33 to 69 form part of the financial statements. The prior year comparative Statement of Financial Activities (SOFA) for 2020 is shown in Note 26 on page 69.

28

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2021

Income
Expenditure
Operating deficit for the year
Net gains on investments
Transfers from endowment funds
Net income for the year
Other comprehensive income:
Revaluation of tangible fixed assets
Actuarial (losses)/gains on defined benefit pension scheme
Total comprehensive income		 Total
2021
£’000
22,958
(30,101)
(7,143)
121
6,971
(51)
6,808
(729)
6,028		 Total
2020
£’000
23,256
(29,052)
(5,796)
90
6,614
908
3,754
253
4,915

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.

29

Oxford Dlocesan Board of Finance Director5, Report and Financial Statements For the Year Ended 31 December 2021 OXFORD DIOCESAN BOARD OF FINANCE Company No. 142978 {England and Wales) BALANCE SHEET as at 31 December 2021 2021 2020 Note £'ooo £'ooo £'ooo £'ooo FIXED ASSETS Tangible assets Investments 15 16 349,917 159,800 320,056 142, 794 509,717 462.850 CURRENT ASSETS Debtors due after more than one year Pension scheme surplus- staff scheme Debtors due wlthin one year Cash on deposit and at bank 17 25 17 196 77 1,833 18,614 221 828 2.088 20,257 20,720 23,394 CREDITORS: amounts falling due within one year 18 14,224) (2.837) NET CURRENT ASSErs 16,496 20,557 TOTAL ASSETS LESS CURRENT LIABILITIES 526,213 483,407 CREDITORS: amounts fallin8 due after more than one year Pension scheme liabilities- clergy scheme 25 Other creditors 19 1684) 12,7441 (1,358) (2,406J NET ASSETS 522,785 479,643 FUNDS Endowment Funds lincluding asset revaluations of £237,167K12020- £199,038KII Restrirted Income Funds lincluding asset revaluations of £446K12020: £329KI) Unrestricted Income Funds". Tangible Fixed Asset Property Fund lincludlng asset revaluations of £46,009K12020: £39,555KI} Designated Funds General Fund (including asset revaluation of £301K (2020: £319KII 422,892 385, 778 2.344 2,261 81,393 75.488 7,151 6.324 9,005 9,792 TOTAL FUNDS 21 522.785 479,643 The notes on pages 32 to 69 form part of these financial statements. The financial statements were approved byt irectors and auth ised for issue on 4 May 2022 and signed on behalf of the Directors by: The Right Reverend Dr. S. J. Croft Bishop of Oxford Sir Hect Chair Sants 30

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

STATEMENT OF CASH FLOWS For the year ended 31 December 2021

Net cash used in operating activities (Below A)
Cash flows from investing activities
Dividends, interest and rent from investments
Interests Paid
Proceeds from the disposal of:
Tangible Fixed Assets
Fixed Asset Investments
Purchase of:
Tangible Fixed Assets
Fixed Asset Investments
Net cash provided by investing activities
Cash flows from financing activities
Loans repaid to ODBF
New loans advanced by ODBF
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December (Below B)
Reconciliation of net movement in funds to net cash
used in operating activities
A. Net (expenditure) for the year before investment
gains
Adjustments for:
Depreciation charges
Dividends, interest and rent from investments
Interests paid
Losses (Gains) on sale of functional assets
Decrease in debtors (ex loans)
Increase/(Decrease) in creditors (ex loans)
Clergy pension scheme adjustment
Staff pension scheme adjustment
Recoupment of impairment
Net cash used in operating activities
B. Analysis of cash and cash equivalents
Cash at bank and on deposit		 2021
£’000
£’000
(6,381)
3,257
(2)
1,593
20,612
(579)
(20,193)
4,688
57
(7)
50
(1,643)
20,257
18,614
(5,451)
142
(3,257)
2
57
232
1,350
12
22
510
(6,381)
18,614		 2020
£’000
£’000
(5,234)
3,471
-
6,329
15,742
(1,816)
(14,907)
8,819
424
(36)
388
3,973
16,284
20,257
(3,797)
142
(3,471)
-
(96)
2,383
(558)
88
29
46
(5,234)
20,257		 2020
£’000
£’000
(5,234)
3,471
-
6,329
15,742
(1,816)
(14,907)
8,819
424
(36)
388
3,973
16,284
20,257
(3,797)
142
(3,471)
-
(96)
2,383
(558)
88
29
46
(5,234)
20,257
3,973
16,284
20,257
(3,797)
142
(3,471)
-
(96)
2,383
(558)
88
29
46
(5,234)
20,257

31

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

1. Principal Accounting Policies

The Oxford Diocesan Board of Finance (ODBF) is a company limited by guarantee (No. 142978 England and Wales) and a registered charity (No. 247954) governed by its Memorandum and Articles of Association.

Basis of accounting

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2021 with comparative information provided for the year to 31 December 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest £1,000.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the directors and management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Going concern

The directors have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The directors have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.

32

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

The directors anticipate some recovery in parish share in 2022. Parishes responded magnificently in the extraordinary circumstances of 2021 with 93.2% of parish share being received. It is anticipated that 2022 receipts against share allocations will improve, as the quantum of Deanery allocations remains broadly unchanged. Whilst a significant deficit is budgeted for in 2022, the directors do not consider that 2022 or beyond would give rise to any inability of the charity to continue as a going concern. The directors are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due especially given that the charity has sufficient monetary assets, including short term cash deposits, which could be readily realised to meet liabilities should there be an unexpected curtailment of income.

In the year ending 31 December 2021, the most significant areas of uncertainty that may affect the carrying value of assets held by the charity are the level of investment return and the performance of the investment market and land values.

Income

Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured reliably and it is probable that the funds will be received.

Income comprises donations and legacies, including Parish Share income, income from listed and property (Glebe) investments, income directly related to charitable activities (including grants) and the surplus on disposal of tangible fixed assets.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable.

Monies receivable from the Government’s Coronavirus Job Retention Scheme are recognised when the charity has entitlement to the income and the amount due can be measured.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised. Income is deferred only when the charity has to fulfil performance related conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

33

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

Expenditure

Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered.

Resources expended comprise the following:

  1. Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees, staff costs associated with fundraising, and an allocation of support costs.

  2. The charitable activities comprise expenditure on the charity’s primary charitable purposes as described in the directors’ report i.e. promoting the work of the Church in the Diocese including payments of grants. The expenditure includes both costs that can be allocated directly to such activities and those indirect costs necessary to support them.

Support costs are those costs which enable charitable activities to be carried out. These costs include the expenses relating to finance, human resources, property management, communications and information technology. Where expenditure incurred relates to more than one activity it is apportioned using the most appropriate basis.

Grants payable are included in the statement of financial activities when approved and when committed. Commitment will usually arise when the intended recipient has either received the funds or been informed of the decision to make the donation.

Tangible Fixed Assets

Properties

All properties, including glebe and parsonage houses, are stated at valuation, except for redundant churches that are held at a nil valuation reflecting uncertainty as to their future retention and use, and Church House Oxford which is stated at cost less accumulated depreciation. Valuations are undertaken annually as at 31 December each year by the Director of Buildings with reference to advice from professional agents. All properties are subject to an annual impairment review by the Director of Buildings; properties are written down to net realisable value where that is lower than carrying value. The overall net gain or loss for the year on revaluation, if any, is shown in the statement of financial activities.

Additions are at cost but subject to an annual valuation adjustment at the end of the financial year.

Extensions to and significant adaptions to the fabric of buildings are capitalised.

34

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

With the exception of Church House Oxford (net book value £0.5M), no depreciation is provided on buildings as any charge would not be material due to the very long expected useful economic life and because their expected residual value is not materially less than their carrying value. ODBF has a policy of regular repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to suffer obsolescence.

In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value.

Depreciation is charged on Church House at an annual rate of 2.5% based on original cost with refurbishment work thereto being depreciated at 5% per annum based on cost.

Sales and purchases of properties are recognised on the date of exchange of contract.

The majority of transfers occur following pastoral reorganisation. A benefice house may be transferred to Diocesan glebe or general funds for disposal or to be held as a corporate property, as determined by the particular pastoral scheme. In the majority of such cases, houses are required as functional fixed assets for housing team vicars (in a team ministry) or other members licensed to a benefice and as such are held as corporate property under unrestricted designated funds.

Leasehold properties are all held on long leases.

Parsonage houses, also known as benefice houses, are legally vested in the incumbent. However, an incumbent is not free to dispose of the house for his/her own benefit, cannot make alterations or improvements to the property and is not responsible for maintaining the house. In spite of the complex tenure of parsonage houses, ODBF is responsible for the maintenance and insurance of the houses in the same way as for other houses and, therefore, they are recognised as tangible fixed assets of ODBF in the balance sheet.

Other tangible fixed assets

Computer and other office equipment and motor vehicles are included at cost less depreciation.

Depreciation is charged so as to write off the cost by equal instalments over their estimated useful lives.

Rate per annum
Motor cars 25% of cost
Computers 33⅓% of cost
Other office equipment 5% to 25% of cost

Office furniture and small items of equipment costing less than £1k are written off as a revenue cost in the year of purchase.

35

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Apart from fixed asset investments held at fair value, these are recognised initially at transaction value and subsequently measured as described below.

Investments

Investments include agricultural holdings and commercial, residential and amenity properties, financial investments and cash deposits. Glebe investments are endowment funds and held with the intention of producing a sustainable income to help fund stipend payments whilst safeguarding capital values in the long term. The property investments are valued as at 31 December each year by the Director of Buildings based on valuations and advice from professional agents. Where formal planning consent has been given for the development of a site, the valuation takes the development potential of the site into account. No depreciation is applied to investment properties.

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

The Glebe permanent endowment fund comprises assets (including listed investments) which must be held as capital. From 1 January 2018, the charity has operated a total return approach to the management of the listed investment portfolio representing the Glebe permanent endowment fund. Using this approach, the charity is required to analyse the fund between the amount held for investment (non-distributable funds) and the unapplied total return.

The charity is permitted to allocate from the unapplied total return element such sums as the directors consider appropriate provided the directors exercise their statutory duty to be even handed as between present and future beneficiaries and that they maintain the unapplied total return at such a level as to ensure it remains positive after having due consideration to the volatility of the investment markets. The charity's objective is also to maintain the value of non-distributable funds in real terms.

36

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. CBF deposits are highly liquid investments and are included in cash at bank and in hand.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.

Funds structure

The unrestricted funds include certain tangible fixed assets of the company, those assets designated or set aside by the directors for specific purposes and those assets which may be used towards meeting the charitable objectives of the charity and may be applied at the discretion of the directors.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

The endowment funds comprise assets which normally must be held as capital (permanent) but, where permitted, may be applied towards meeting certain charitable aims (expendable). The income therefrom may be used either in accordance with the donors’ wishes, if stipulated, or for general purposes.

Pensions

ODBF operates an occupational pension scheme through the Pensions Trust, which is a defined benefit scheme based on final salary and which closed to new entrants during 2006. In 2007 ODBF began to operate a defined benefit scheme through the Church Workers Pension Fund scheme for new staff. It also operates a stakeholder scheme and contributes to personal pension schemes.

A separate pension scheme for clergy is administered by the Church of England Pensions Board (CEPB) and is a defined benefit scheme. Details of the staff and clergy schemes are set out in note 25.

37

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

1. Principal Accounting Policies (Cont’d)

The financial statements take account of the annual valuation of the defined benefit schemes undertaken by the pension fund’s actuaries.

The change in the value of the pension asset or liability over the year has been analysed into the following components:

The current service cost, expected return on pension scheme assets and interest on pension scheme liabilities are included in the Statement of Financial Activities. Actuarial gains and losses arising from updating the latest actuarial valuation to reflect conditions at the balance sheet date are included as other recognised gains or losses. More details are included in note 25.

ODBF’s contributions to the defined contribution scheme, the stakeholder scheme, personal pensions and the CEPB scheme are included as expenditure when payable.

38

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

2. Income from Donations

Parish contributions
Share rebates and
discounts
Archbishops’ Council
All Churches Trust
Other donations
Total Income		 Unrestricted
Funds
£’000
19,075
(486)
18,589
-
232
94
18,915		 2021
Restricted
Funds
£’000
-
-
-
9
-
280
289		 Total
Funds
2021
£’000
19,075
(486)
18,589
9
232
374
19,204		 Unrestricted
Funds
£’000
19,466
(545)
18,921
-
244
127
19,292		 2020
Restricted
Funds
£’000
-
-
-
15
-
107
122		 Total
Funds
2020
£’000
19,466
(545)
18,921
15
244
234
19,414

The majority of donations are collected from the parishes of the Diocese through the parish share system.

Current year Parish share receipts in 2021 represent 93.2% of the total apportioned (2020: 94.4%).

3. Income from Charitable Activities

Statutory fees
Training, events and similar
Housing income
School premises support
Other		 Unrestricted
Funds
£’000
887
113
1,043
72
1
2,116		 2021
Restricted
Funds
£’000
-
685
-
-
-
685		 Total Funds
2021
£’000
887
798
1,043
72
1
2,801		 Unrestricted
Funds
£’000
721
122
813
54
9
1,719		 2020
Restricted
Funds
£’000
-
662
-
-
-
662		 Total
Funds
2020
£’000
721
784
813
54
9
2,381

39

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

4. Income from Investments

4. Income from Investments
Dividends receivable
Interest receivable
Rents receivable
Other investment income
Dividends receivable
Interest receivable
Rents receivable
Other investment income		 Unrestricted
Funds
£’000
1
23
601
92
717
Unrestricted
Funds
£’000
2
75
581
89
747		 2021
Restricted
Funds
Endowment
Funds
£’000
£’000
180
2,360
-
-
-
-
-
-
180
2,360
2020
Restricted
Funds
Endowment
Funds
£’000
£’000
175
2,543
6
-
-
-
-
-
181
2,543		 Total Funds
2021
£’000
2,541
23
601
92
3,257
Total Funds
2020
£’000
2,720
81
581
89
3,471

40

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

5. Income from Other Sources


Surplus on disposal of properties
Disposal of closed church
Furlough grants
Other property income		 General
Funds
£’000
-
-
12
-
12		 Tangible Fixed
Assets
Property Fund
£’000
10
-
-
31
41		 2021
Restricted
Funds
Endowment
Funds
£’000
£’000
-
3
-
-
-
-
-
34
3
34		 Total Funds
2021
£’000
10
3
12
65
90

Surplus on disposal of properties
Disposal of closed church
Furlough grants
Other property income		 General
Funds
£’000
-
-
63
4
67		 Tangible Fixed
Assets
Property Fund
£’000
193
-
-
-
193		 2020
Restricted
Funds
Endowment
Funds
£’000
£’000
-
273
-
206
-
-
-
60
273
266		 Total Funds
2020
£’000
399
273
63
64
799

6. Expenditure on Raising and Managing Funds

Glebe costs
Parsonage rental costs
Other		 Unrestricted
Funds
£’000
244
132
1
377		 2021
Endowment
Funds
£’000
518
-
-
518		 Total Funds
2021
£’000
762
132
1
895		 Unrestricted
Funds
£’000
268
39
13
320		 2020
Endowment
Funds
£’000
476
-
-
476		 Total
Funds
2020
£’000
744
39
13
796

41

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

7. Expenditure on Charitable Activities

Contributions to Archbishops’ Council
Training for Ministry
National Church Responsibilities
Mission agency pension costs
Retired clergy housing
Grants and provisions
Pooling of ordinand maintenance grants
Resourcing Ministry & Mission
Parish Ministry:
Stipends
National insurance
Pension contributions
Clergy pension adjustment
(see note 25)
Apprenticeship levy
Housing costs
Removal, resettlement, parish & clergy
grants
Other parish expenses
Support for parish ministry & training
Ordinand grants
Diocesan training costs
Mission in the Diocese
DAC, MPC & DT(O)L
Communications
Bishops, Archdeacons & Area Offices
Expenditure on grants
Grants to Oxford Diocesan Board of
Education (ODBE)
Grants to other organisations(see note 11)
Total charitable activities		 Unrestricted
Funds
£’000
924
645
41
340
79
(5)
2,024
9,579
782
3,444
-
45
4,000
263
963
19,076
698
672
2,039
329
253
546
4,537
269
2,142
2,411
28,048		 2021
Restricted
Funds
Endowment
Funds
£’000
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
-
-
-
-
-
-
-
-
12
11
-
654
-
342
-
-
-
4
-
-
-
1,011
-
-
-
113
-
113
-
1,124
12		 Total
Funds
2021
£’000
924
645
41
340
79
(5)
2,024
9,579
782
3,444
12
45
4,000
263
963
19,088
709
1,326
2,381
329
257
546
5,548
269
2,255
2,524
29,184

42

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

7. Expenditure on Charitable Activities (Cont’d)

Contributions to Archbishops’ Council
Training for Ministry
National Church Responsibilities
Mission agency pension costs
Retired clergy housing
Grants and provisions
Pooling of ordinand maintenance grants
Resourcing Ministry and Mission
Parish Ministry:
Stipends
National insurance
Pension contributions
Clergy pension adjustment
(see note 25)
Apprenticeship levy
Housing costs
Removal, resettlement, parish & clergy
grants
Other parish expenses
Support for parish ministry and training
Ordinand grants
Diocesan training costs
Mission in the Diocese
DAC, MPC & DT(O)L
Communications
Bishops, Archdeacons & Area Offices
Expenditure on grants
Grants to Oxford Diocesan Board of
Education (ODBE)
Grants to other organisations(see note 11)
Total charitable activities		 Unrestricted
Funds
£’000
923
694
35
332
78
151
2,213
9,709
793
3,402
-
45
4,139
350
843
19,281
592
651
1,908
416
287
487
4,341
269
1,416
1,685
27,520		 2020
Restricted
Funds
Endowment
Funds
£’000
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
88
-
-
-
-
1
-
-
-
1
88
11
-
661
-
164
7
-
-
-
-
-
-
836
7
-
-
138
-
138
-
975
95		 Total
Funds
2020
£’000
923
694
35
332
78
151
2,213
9,709
793
3,402
88
45
4,139
351
843
19,370
603
1,312
2,079
416
287
487
5,184
269
1,554
1,823
28,590

43

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

8. Other Property Costs

Unrestricted

Fund

(Gain)/Loss on disposal of properties Valuation and related costs

Unrestricted
Fund
Tangible Fixed
Asset
Property Fund
£’000
(1)
553
552		 Endowment
Funds
£’000
69
103
172		 Total Funds
2021
£’000
68
656
724

Unrestricted

Fund

Loss on disposal of properties
Valuation and related costs		 Tangible Fixed
Asset
Property Fund
£’000
81
156
237		 Endowment
Funds
£’000
221
18
239		 Total Funds
2020
£’000
302
174
476

9. Analysis of Expenditure Including Allocation of Support Costs

Raising and managing funds
(note 6)
Charitable activities (note 7):
Contributions to
Archbishops’ Council
Resourcing parish ministry
Support for parish ministry
and training
Grant to Board of Education
Grants to other
organisations
Other property related costs
(Note 8)		 Activities
Undertaken
Directly
£’000
824
2,024
18,647
4,658
269
2,255
724
29,401		 2021
Support
Costs
(Note 10)
£’000
71
-
441
890
-
-
-
1,402		 Total
Costs
2021
£’000
895
2,024
19,088
5,548
269
2,255
724
30,803		 Activities
Undertaken
Directly
£’000
730
2,213
18,960
4,286
269
1,554
476
28,488		 2020
Support
Costs
(Note 10)
£’000
66
-
410
898
-
-
-
1,374		 Total
Costs
2020
£’000
796
2,213
19,370
5,184
269
1,554
476
29,862

See notes 6 to 8 for an analysis of the costs per category

44

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

10. Analysis of Support Costs

Human resources and administration
Finance
Secretariat
ICT
Premises and other
Governance:
External audit
Registrar and Chancellor
Synod costs
11. Analysis of Grants Made
From unrestricted funds for National Church
responsibilities:
Contributions to Archbishops’ Council
(note 7)
From general and restricted funds to
institutions:(Note 7)
Parents and Children Together (PACT)
Development Fund Grants
Ecumenical and chaplaincy grants
Grants for parish building projects
Bishops discretionary grants
Oxford Diocesan Council for the Deaf
Diocesan Mutual Support grant
Anglican Communion – Covid support
Other grants		 2021
No.
1
1
41
3
34
4
1
1
-
33
118		 2020
No.
1
1
45
3
38
4
1
-
1
-
93		 Unrestricted Funds
2021
2020
£’000
£’000
292
287
315
306
201
179
202
168
207
247
23
26
128
153
34
8
1,402
1,374
2021
2020
£’000
£’000
2,024
2,213
95
95
927
1,135
52
51
36
56
21
21
7
1,000
7
-
-
50
117
139
2,255
1,554		 Unrestricted Funds
2021
2020
£’000
£’000
292
287
315
306
201
179
202
168
207
247
23
26
128
153
34
8
1,402
1,374
2021
2020
£’000
£’000
2,024
2,213
95
95
927
1,135
52
51
36
56
21
21
7
1,000
7
-
-
50
117
139
2,255
1,554
95
1,135
51
56
21
7
-
50
139
1,554

45

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

12. Staff Costs

Staff costs during the year were as follows:-
Wages and salaries
National Insurance contributions
Pension costs
Total
The average number of persons employed during the year based on
headcount:
Charitable activities
Support
Total
The average number of persons employed during the year based on full-
time equivalents
Charitable activities
Support
Total
The numbers of staff whose emoluments (including benefits in kind but
excluding employer’s pension contributions and National Insurance)
amounting to more than £60,000 were as follows:
£60,001-£70,000
£70,001-£80,000
£80,001-£90,000
£90,001-£100,000		 2021
£’000
3,104
314
465
3,883
Number
79
19
98
64
16
80
3
2
-
1		 2020
£’000
2,938
300
471
3,709
Number
73
18
91
58
16
74
2
2
1
-

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, for planning, directing and controlling the activities of ODBF. In addition to the directors of the company, key management personnel during 2021 comprise:

Diocesan Secretary and Company Secretary Canon Mark Humphriss
Director of Mission & Ministry Canon Andrew Anderson-Gear
Director of Finance Mr John Orridge
Director of Buildings Mr David Mason
Director of Human Resources & Safeguarding Mrs Poli Shajko
Director of Communications Mr Steven Buckley

The aggregate remuneration, including pensions and employer’s National Insurance contributions for these 6 posts amounted to £558K (2020: £529K).

46

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

12. Staff Costs (Cont’d)

Directors’ emoluments

No remuneration has been paid to any director during the year (2020: £nil) for acting as a director or a member of key management. However, 15 (2020: 13) directors, who held ecclesiastical office during the year, were paid aggregate stipends of £328,000 (2020: £350,000). Pension contributions on those stipends amounted to £108,000 (2020: £120,000) and employer’s National Insurance thereon was £31,000 (2020: £32,000). 13 Directors (2020: 15) were reimbursed for travel, subsistence and incidental costs amounting to £13,000 (2020: £16,000) for services provided to ODBF in all the capacities in which they serve. Some directors are provided with housing because of their ecclesiastical office. One of the archdeacons were provided with a car with a cost of £14K (2020: 1 car at a cost of £14K).

The following table gives details of the directors who were in receipt of a stipend and/or housing provided by the ODBF during the year:

vided by the ODBF during the year:
Stipend Housing
The Revd Dr T H N Kuin Lawton (to12/11/2021) Yes No
The Revd D W McFarland (fm 25/11/2021) Yes Yes
The Revd J M Mintern (fm 25/11/2021) Yes Yes
The Venerable G Elsmore Yes Yes
The Venerable J French Yes Yes
The Venerable J Chaffey Yes No
The Venerable S Pullin Yes No
The Revd Canon Dr GB Bayliss Yes Yes
The Revd V Breed (to 31/07/2021) Yes Yes
The Revd E K Denno (to 31/07/2021) Yes Yes
The Revd R J Lamey Yes Yes
The Revd D J Meakin Yes Yes
The Revd C Messervy (to 21/04/2021) Yes Yes
The Revd M K J Smith (to 25/11/2021) Yes Yes
The Revd S E Sharp (fm 16/12/2021) Yes Yes

The ODBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the Diocese, other than bishops and cathedral staff. The ODBF is also responsible for the provision of housing for stipendiary clergy in the Diocese including the Area Bishops but excluding the Diocesan Bishop and cathedral staff.

The stipends of the Diocesan Bishop and Area Bishops are funded by the Church Commissioners and are in the range £46,180-£46,560 for Diocesan Bishops and £37,670-£38,210 for Area Bishops. The annual rate of stipend, funded by the ODBF, paid to Archdeacons in 2021 was £36,830 (2020 range £36,100-£36,800) and other stipendiary clergy who were directors were paid in the range £27,963 - £29,463 (2020 range £27,400 - £29,400).

The charity has insurance to indemnify the directors and officers against the consequences of any neglect or default on their part. The insurance is provided as part of the charity’s general insurance and as such there is no separate premium payable (2020: none). The cover provided is up to £100,000 (2020: £100,000).

47

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

13. Related Parties

The directors consider that the following are related parties:

Oxford Diocesan Board of Education (ODBE)
Diocesan Trustees (Oxford) Limited (DT(O)L)
Oxford Diocesan Schools Trust (ODST)
Oxford Diocesan Buckinghamshire Schools Trust (ODBST)
Parents and Children Together (PACT)
Oxford Diocesan Council for the Deaf (ODCD)

Grants are made and services provided to PACT and ODCD to support their work as below. Their objects are congruent with those of ODBF.

PACT ODCD ODCD
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Recharged by ODBF:
Grants made by ODBF (Note 11) 95 95 - 7

ODBF bears the entire operating costs of DT(O)L, consisting principally of accounting, secretarial and administrative services. These amounted to £69K (2020: £114K). At 31 December 2021 there was no balance due from DT(O)L to ODBF (2020: £nil).

ODBF made grants of £269K to ODBE in 2021 (2020: £269K) (see Note 7). In 2021 ODBF made a grant of £110K to ODBE to support Common Vision projects: chaplaincy and development of church/school relationships. ODBF recharged ODBE for accounting, company secretarial, human resources, ICT, premises administrative services totalling £179K in 2021 (2020: £171K). The balance due from ODBE at 31 December 2021 was £83K (2020: £20K) and the balance due to ODBE was £nil (2020: £143K).

ODST occupied space in Church House Oxford and contributed £25K (2020: £32K) towards the running costs of the building including reception and ICT. The balance due from ODST at 31 December 2021 was £nil (2020: £125). The balance due to ODST at 31 December 2021 was £nil (2020: £752).

48

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

14. Analysis of Transfers between Funds

a) Transfers in respect of Total Return

i)
Total Return transfer to
general funds from Endowment
fund (note 16c)
ii) Transfer from general to
designated funds for Common
Vision		 General
Funds
£’000
6,971
(3,109)		 Designated
Funds
£’000
-
3,109		 Unrestricted
Funds
Total
Unrestricted
funds
Endowment
Funds
£’000
£’000
6,971
(6,971)
-
-

As this £3.1 million cannot legally be drawn from the £6.9M, all of the £6.9 million is applied to the costs of stipendiary ministry, and the £3.1 million is drawn from other income of the diocese (of which the largest element is parish share). The net impact of these two separate transfers is to augment the amount of the diocese’s total funds being applied to support stipendiary ministry within the Diocese during the year by £3.8M (2020: £3.8M).

2020 prior year comparatives (as restated):

i)
Total Return transfer to
general funds from Endowment
fund (note 16c)
ii) Transfer from general to
designated funds for Common
Vision		 General
Funds
£’000
6,878
(3,091)		 Designated
Funds
£’000
-
3,091		 Total
Unrestricted
funds
Endowment
Funds
£’000
£’000
6,878
(6,878)
-
-

49

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

14. Analysis of Transfers between Funds (Cont’d)

b) Other transfers

Type of transfer
i)
Purchase and improvements to properties
ii) Disposal of Board properties
iii) Purchase, improvement and disposal of
Benefice properties in the year
Other transfers of less than £250,000 each		 Unrestricted Funds
General &
designated
Funds
Tangible
Fixed Assets
Fund
£’000
£’000
(446)
446
838
(838)
-
-
67
-
459
(392)		 Restricted
Funds
£’000
-
-
-
(67)
(67)		 Endowment
Funds
£’000
-
-
-
-
-

i) The purchase of Board owned properties require an equivalent transfer from the general fund to the Board Properties Fund, which finances Board properties.

ii) The disposal of Board properties require an equivalent transfer to the general fund from the Board Properties Fund, which finances Board properties.

iii) When a Benefice property is sold, a transfer is made from the endowment fund to restricted fund

2020 prior year comparatives:

Type of transfer
i)
Purchase and improvements to properties
ii)
Disposal of Board properties
iii)
Purchase, improvement and disposal of
Benefice properties in the year
Other transfers of less than £250,000 each
Type of transfer		 Unrestricted Funds
General &
designated
Funds
Tangible
Fixed Assets
Fund
£’000
£’000
(314)
314
2,528
(2,528)
-
-
66
-
2,280
(2,214)		 Restricted
Funds
£’000
-
-
(264)
(66)
(330)		 Endowment
Funds
£’000
-
-
264
-
264

50

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

15.Tangible Fixed Assets

Cost or valuation
At 1 January 2021
Additions
Disposals
Revaluations
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net Book Values
At 31 December 2021
At 31 December 2020		 Freehold
Property
£’000
77,562
444
(825)
6,687
83,868
425
101
526
83,342
77,137		 Leasehold
Property
£’000
717
-
-
71
788
-
-
-
788
717		 Vehicles &
Office
Equipment
£’000
1,025
28
-
-
1,053
854
41
895
158
171		 Benefice
Property
£’000
210,665
107
(827)
21,407
231,352
-
-
-
231,352
210,665		 Glebe
Team
Vicarages
£’000
31,366
-
-
2,911
34,277
-
-
-
34,277
31,366		 Total
£’000
321,335
579
(1,652)
31,076
351,338
1,279
142
1,421
349,917
320,056

Included within revaluation gains are impairment costs of £138K which had been recognised in Other property costs (note 8).

16 a) Fixed Asset Investments

Unrestricted Funds
Equity Mortgage Loans
Designated Funds
Administered funds
Restricted Funds
ODBF Trusts & other
Endowment Funds
Glebe (see note 16b)
ODBF Trusts & other
Total		 At 1 January
2021
£’000
546
26
819
136,335
5,068
141,403
142,794		 Additions
£’000
-
-
-
20,192
1
20,193
20,193		 Disposals
at book
value
£’000
(53)
-
-
(19,831)
(19,831)
(19,884)		 Change in
Market
Value
£’000
-
4
117
15,847
729
16,576
16,697		 At 31
December
2021
£’000
493
30
936
152,543
5,798
158,341
159,800

51

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

16 b) Glebe Investments

Cost or valuation
At 1 January 2021
Additions at cost
Disposals at book
value
Reclassification
Unrealised
(losses)/gains
Net Book Value
At 31 December 2021
Cost or ICV
At 31 December 2021		 Agricultural
Land
£’000
24,387
-
(877)
(100)
23,410
4,101		 Residential
Property
£’000
2,715
-
-
271
2,986
1,544		 Commercial
Property
£’000
2,220
637
-
77
2,934
3,178		 Amenity
& Other
Property
£’000
2,807
9
(120)
202
2,898
1,796		 Listed
Investments
£’000
104,206
19,546
(18,834)
15,397
120,315
86,079		 Total
£’000
136,335
20,192
(19,831)
15,847
152,543
96,698

Glebe listed investments are managed by Newton Investment Management.

16 c) Application of total return accounting to Glebe Investments

The investment power of total return permits ODBF to invest the permanently endowed funds of glebe investments to maximise total return and apply an appropriate portion of the unapplied total return each year.

Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains part of the permanent endowment. 7% of the value of Glebe listed investments, i.e., £7,453K, was transferred to general funds such that it is set against the cost of stipendiary ministry in the year, as determined by the Diocesan Stipends Fund (Amendment) Measure 2016 or incurred on investment managements fees.

From 1 January 2018 the Oxford Diocesan Board of Finance adopted a total return approach to investments with regard to the Glebe listed investment portfolio, following consultation with the Diocesan legal advisers and auditors and in accordance with their advice.

The initial value for implementing total return for investment was determined at 31 December 2000 and valued at £14.7M. This was the amount held in listed investments at that date. The unapplied total return was calculated as at the 1 January 2018 and valued at £14.9M as the increase above inflation in the value of these investments since the initial valuation, adjusted for the introduction of new investment in the portfolio following significant sales of glebe land which have taken place since 2008. Bishop’s Council voted in 2020 to include 2018 & 2019 glebe land sales totalling £12.38M within the unapplied total return calculation and any development gains from 2018 onwards, to be applied with effect from 1 January 2021.

52

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

16 c) Application of total return accounting to Glebe Investments (cont’d)

It also voted to apply the CPI inflation measure (backdated to 2000), rather than RPI, further increasing unapplied total return by £5.05M from 1 January 2021. The movements during the last calendar year in the value of the unapplied total return are set out in the following table:

As at 1 January 2021:
Base value of the permanent endowment
Unapplied total return
Total (as reported in the prior year)
Adjustments to opening balance (see below)
Glebe land net disposal proceeds since 1 Jan 2018
Adjustment to CPI indexation
Movements in the year:
Investment returns: dividends received
Investment return: realised and unrealised gains
Investment management fees
Unapplied total return allocated to income in the year
Add indexation of base level of endowment
Net movements in the year
As at 31 December 2021:
Base value of the permanent endowment
Unapplied total return
Valuation as at 31 December 2021		 Trust for
investment
(Base Value
Indexed by CPI)
£’000
94,122
-
94,122
(14,951)
(5,050)
-
-
-
-
4,518
(15,483)
78,639
-
78,639		 Unapplied
Total
Return
£’000
-
12,362
12,362
14,951
5,050
2,360
16,127
(482)
(6,971)
(4,518)
26,517
-
38,879
38,879		 Total
endowment
£’000
94,122
12,362
106,484
-
-
2,360
16,127
(482)
(6,971)
-
11,034
78,639
38,879
117,518

The listed investments of £120,315K (note 16b) includes cash funds of £2,797K in addition to the total endowment fund of £117,518K at 31 December 2021.

Analysis of Withdrawal to income

Release to general funds to support stipends (note 14)
Investment management fees
Withdrawal to income		 £’000
6,971
482
7,453

53

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

16 c) Application of the power of total return to glebe investments (cont’d) Prior year figures for the year ended 31 December 2020

Trust for
investment
Unapplied
Total
Return
£’000
£’000
As at 1 January 2020:
Base value of the permanent endowment
90,460
-
Unapplied total return
-
13,872
Total
90,460
13,872
Movements in the year:
Additional sale proceeds of glebe land sale
2,576
-
Investment returns: dividends received
-
2,543
Investment return: realised and unrealised gains
-
4,336
Investment management fees
-
(425)
Unapplied total return allocated to income in the year
-
(6,878)
Add indexation of base level of endowment
1,086
(1,086)
Net movements in the year
3,662
(1,510)
As at 31 December 2020:
Base value of the permanent endowment
94,122
-
Unapplied total return
-
12,362
Valuation as at 31 December 2020
94,122
12,362
The total endowment includes cash funds of £2,278K in addition to listed investments
Analysis of Withdrawal to income (as restated)£’000
Release to general funds to support stipends (note 14)
Investment management fees
6,878
425
Withdrawal to income
7,303		 Total
endowment
£’000
90,460
13,872
104,332
2,576
2,543
4,336
(425)
(6,878)
-
2,152
94,122
12,362
106,484
of £104,206K.

54

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

17. Debtors

Amounts due after more than one year
Loans to parishes
Pension Scheme surplus (Note 25)
Amounts due within one year
Prepayments
Accrued income
Other debtors
Loans
Amounts due from connected charities
Total
Total debtors
reditors: amounts falling due within one year
Creditors and accruals
Taxation and social security
Deferred income
Total creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year
Creditors and accruals
Loans
Total creditors: amounts falling due after more than one year
The above loans are all repayable after more than five years		 2021
£’000
196
77
236
384
850
314
49
1,833
2,106
2021
£’000
3,823
87
314
4,224
2021
£’000
-
2,744
2,744		 2020
£’000
221
828
282
406
1,045
335
20
2,088
3,137
2020
£’000
2,518
82
237
2,837
2020
£’000
34
2,372
2,406

18. Creditors: amounts falling due within one year

19. Creditors: amounts falling due after more than one year

Loans include equity mortgage loans from the Church Commissioners. Equity mortgages are secured on individual freehold properties and are repayable on disposal.

55

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

20. Summary of Fund Movements

UNRESTRICTED FUNDS
General
Designated Funds
Common Vision
Development posts and new
communities fund
Property repair & maintenance
Other funds
Total General and Designated
Funds
Tangible Fixed Assets Property
Fund
Board properties fund
RESTRICTED FUNDS
Diocesan Pastoral Account
Mission grants fund
Sillitoe Bequest
Other funds below £250K
ENDOWMENT FUNDS
Glebe team vicarages
Glebe investments
Clergy pension scheme deficit
Diocesan stipends fund
Parsonage house fund
Stipends bequest fund
Ordination candidates funds
Other funds
Total funds		 Balances at
1 Jan 2021
£’000
9,792
5,264
897
-
163
6,324
16,116
75,488
200
43
1,012
1,006
2,261
32,907
138,439
(1,358)
169,988
210,660
2,109
1,537
1,484
385,778
479,643		 Income
£’000
21,741
3
-
-
16
19
21,760
41
2
-
23
1,132
1,157
-
2,360
-
2,360
34
-
-
-
2,394
25,352		 2021
Expenditure
Transfers
(note 14)
£’000
£’000
(25,570)
3,771
(2,716)
3,109
(122)
-
-
(17)
550
-
(2,855)
3,659
(28,425)
7,430
(552)
(392)
(16)
-
(15)
-
-
-
(1,093)
(67)
(1,124)
(67)
(100)
-
(518)
(6,971)
(12)
-
(630)
(6,971)
(72)
-
-
-
-
-
-
-
(702)
(6,971)
(30,803)
-		 Gains &
Losses
£’000
(729)
-
-
-
4
4
(725)
6,808
-
-
115
2
117
3,010
16,573
686
20,269
21,395
298
221
210
42,393
48,593		 Balances at
31 Dec 2021
£’000
9,005
5,660
775
550
166
7,151
16,156
81,393
186
28
1,150
980
2,344
35,817
149,883
(684)
185,016
232,017
2,407
1,758
1,694
422,892
522,785

56

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

20. Summary of Fund Movements (Cont’d)

UNRESTRICTED FUNDS
General
Designated Funds
Common Vision
Development posts and new
communities fund
Other funds
Total General and Designated
Funds
Tangible Fixed Assets Property
Fund
Board properties fund
RESTRICTED FUNDS
Diocesan Pastoral Account
Mission grants fund
Sillitoe Bequest
Other funds below £250K
ENDOWMENT FUNDS
Glebe team vicarages
Glebe investments
Clergy pension scheme deficit
Diocesan stipends fund
Parsonage house fund
Stipends bequest fund
Ordination candidates funds
Other funds
Total funds		 Balances
at 1 Jan
2020
£’000
7,783
3,726
1,039
170
4,935
12,718
73,992
199
58
901
1,082
2,240
31,326
137,440
(2,376)
166,390
199,462
1,947
1,426
1,391
370,616
459,566		 Income
£’000
21,800
7
-
18
25
21,825
193
275
-
24
939
1,238
-
2,569
-
2,569
240
-
-
-
2,809
26,065		 2020
Expenditure Transfers
£’000
£’000
(26,111)
6,067
(1,560)
3,091
(142)
-
(27)
-
(1,729)
3,091
(27,840)
9,158
(237)
(2,214)
(10)
(264)
(15)
-
-
-
(950)
(66)
(975)
(330)
(72)
-
(476)
(6,818)
(88)
-
(636)
(6,818)
(167)
204
-
-
-
-
(7)
-
(810)
(6,614)
(29,862)
-		 Gains
and
Losses
£’000
253
-
-
2
2
255
3,754
-
-
87
1
88
1,653
5,724
1,106
8,483
10,921
162
111
100
19,777
23,874		 Balances
at 31 Dec
2020
£’000
9,792
5,264
897
6,324
6,324
16,116
75,488
200
43
1,012
1,006
2,261
32,907
138,439
(1,358)
169,988
210,660
2,109
1,537
1,484
385,778
479,643

57

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

21. Summary of Assets by Fund

UNRESTRICTED FUNDS
General
Designated
Common Vision
Development posts and new
communities fund
Property repair & maintenance
Other funds
Total general and designated
funds
Tangible fixed assets property
fund
Board properties fund
RESTRICTED FUNDS
Diocesan Pastoral Account
Mission grants fund
Sillitoe Bequest
Other funds below £250K each
ENDOWMENT FUNDS
Glebe team vicarages
Total Return Investments
Glebe investments
Clergy pension scheme deficit
Diocesan stipends fund
Parsonage house fund
Stipends bequest fund
Ordination candidates funds
Other
Total Funds		 Tangible
Fixed
Assets
£’000
158
-
-
-
-
-
158
84,131
-
-
-
-
-
34,276
-
-
-
34,276
231,352
-
-
-
265,628
349,917		 Investments
£’000
493
3,109
-
-
30
3,139
3,632
-
-
-
922
14
936
300
-
149,134
-
149,434
-
2,368
1,758
1,672
155,232
159,800		 2021
Current
Assets
£’000
9,691
5,079
775
550
145
6,549
16,240
6
187
28
228
1,190
1,633
1,900
-
874
-
2,774
6
39
-
22
2,841
20,720		 Creditors
£’000
(1,337)
(2,528)
-
-
(9)
(2,537)
(3,874)
(2,744)
-
-
-
(225)
(225)
-
-
(125)
(684)
(809)
-
-
-
-
(809)
(7,652)		 Net Assets
£’000
9,005
5,660
775
550
166
7,151
16,156
81,393
187
28
1,150
979
2,344
36,476
-
149,883
(684)
185,675
231,358
2,407
1,758
1,694
422,892
522,785

58

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

21. Summary of Assets by Fund (Cont’d)

UNRESTRICTED FUNDS
General
Designated
Common Vision
Development posts and new
communities fund
Other funds
Total general and designated
funds
Tangible fixed assets property
fund
Board properties fund
RESTRICTED FUNDS
Diocesan Pastoral Account
Mission grants fund
Sillitoe Bequest
Other funds below £250K each
ENDOWMENT FUNDS
Glebe team vicarages
Total Return Investments
Glebe investments
Clergy pension scheme deficit
Diocesan stipends fund
Parsonage house fund
Stipends bequest fund
Ordination candidates funds
Other
Total Funds		 Tangible
Fixed
Assets
£’000
171
-
-
-
-
171
77,854
-
-
-
-
-
31,366
-
-
-
31,366
210,665
-
-
-
242,031
320,056		 Investments
£’000
546
-
-
27
27
573
-
-
-
805
13
818
300
106,484
29,551
-
136,335
-
2,071
1,537
1,460
141,403
142,794		 2020
Current
Assets
£’000
10,150
6,599
897
188
7,684
17,834
6
199
43
205
1,161
1,608
1,241
-
2,648
-
3,889
(5)
38
-
24
3,946
23,394		 Creditors
£’000
(1,075)
(1,365)
-
(22)
(1,387)
(2,462)
(2,372)
-
-
-
(165)
(165)
-
-
(244)
(1,358)
(1,602)
-
-
-
-
(1,602)
(6,601)		 Net Assets
£’000
9,792
5,234
897
193
6,324
16,116
75,488
199
43
1,010
1,009
2,261
32,907
106,484
31,955
(1,358)
169,988
210,660
2,109
1,537
1,484
385,778
479,643

59

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

22. Description of Funds

General fund

The general fund is the ODBF’s unrestricted undesignated fund available for any of the ODBF’s purposes without restriction.

Designated funds

Common Vision

The adoption of total return accounting from 1 January 2018 funds to be released towards supplementing the costs of stipendiary ministry within the general fund. This, in turn, enables general funds to be transferred to a designated income fund for expenditure in relation to the Common Vision strategy. In 2021 a further £3.1M was added and expenditure was £1.6M.

Development posts and new communities fund

In July 2014 and February 2015 Bishop’s Council considered and approved the transfer of £600K to a new designated fund for development posts in new communities. In February 2016 Bishop’s Council approved the transfer of an additional £800K to the fund for development posts. After net expenditure incurred these funds stand at £0.8M at the year-end (2020 £0.9M).

Property repair and maintenance

A fund of £550K was created via a transfer from general funds to allow property costs, deferred due to Covid-19 restrictions, to be expensed in a 3-year period ending 31 December 2024.

Tangible Fixed Assets Property Fund

Board properties fund

The Board properties fund is represented by tangible fixed asset properties plus any related debtors less loans drawn down to finance the purchase of those properties.

Restricted funds

Diocesan Pastoral Account

The Diocesan pastoral account was set up under the provisions of the Pastoral Measure 1983. The restricted purposes for which the account may be used are:

60

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

22. Description of Funds (cont’d)

Sillitoe Bequest

A bequest was received in April 1999 to establish a discretionary fund to help clergy to retire early for reasons other than ill health. The allocation of funds is agreed by the Diocesan Secretary and the Archdeacon or Bishop of an Archdeaconry as appropriate.

Endowment funds

Diocesan stipends capital fund

The Diocesan stipends capital fund has been created from the Diocesan stipends fund capital account assets held on behalf of the Diocese by the Church Commissioners under the Endowments and Glebe Measure 1976 to provide income for clergy stipends. It represents the accumulated sale proceeds of glebe property, sale proceeds of benefice houses and surplus benefice endowments following pastoral reorganisation. Capital funds may be used for the purchase, improvement and maintenance of glebe property and benefice houses.

Parsonage house fund

The parsonage house fund consists of resources restricted to provision of benefice houses in the Diocese. They are represented by the benefice houses or by sale proceeds of former benefice houses.

Although benefice houses are vested in the incumbents for the time being of the benefices concerned, ODBF is obliged to maintain them, to ensure that there are sufficient benefice houses for the pastoral structure of the Diocese; in addition, where a benefice house is no longer required then it is usually transferred into the unrestricted corporate ownership of the ODBF.

Stipends bequests fund

The Stipends bequest fund is made up of various legacies and bequests. All income can be used to pay stipends.

Ordination candidates funds

The Ordination candidates funds are made up of several benefactions used to help fund ordination candidates.

23. Capital Commitments

Capital commitments in respect of development of clergy housing contracted but not provided totalled £131K at 31 December 2021 (2020: £0.5M).

24. Members’ liability

The Charity is constituted as a company limited by guarantee. In the event that the company is wound up, company members are required to contribute an amount not exceeding £1 each.

61

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions

Stipendiary Clergy

ODBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the scheme’s assets and liabilities to each specific Responsible Body, and this means that contributions are accounted for as if the scheme were a defined contribution scheme. The pension costs charged to the Statement of Financial Activities in the year are contributions payable towards benefits and expenses accrued in that year (2021: £3,444K, 2020: £3,402K), plus the figures highlighted in the table below as being recognised in the statement of financial activities, giving a total charge of £3,456K for 2021 (2020: £3,490K).

A valuation of the scheme is carried out once every three years. The most recent scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50M, based on assets of £1,818M and a funding target of £1,868M, assessed using the following assumptions:

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions payable (as a percentage of pensionable stipends) are as set out in the table below.

% of pensionable stipends 1 January 2018 to 1 January 2021 to 31 December 2020 31 December 2022 Deficit repair contributions 11.9% 7.1%

62

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

As at 31 December 2021 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

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. The movement in the balance sheet liability is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Interest cost
Remaining change to the Balance Sheet liability*
Pension adjustment to statement of financial activities
Balance sheet liability at 31 December		 2021
£’000
1,358
(686)		 2021
£’000
1,358
(686)		 2020
£’000
2,376
(1,106)
2
10		 20
68
12
684		 88
1,358

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 2021 December 2020
Discount rate 0.0% 0.2%
Price inflation n/a 3.1%
Increase to total pensionable payroll -1.5% 1.6%

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

Salaried staff defined benefit scheme

Eligible salaried employees of ODBF were offered the opportunity to join the Oxford Diocesan Board of Finance Staff Retirement Scheme until September 2006 at which point the scheme closed to new entrants. The Scheme is a defined benefit (final salary) scheme administered by the Pensions Trust who are also the trustees.

63

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

The scheme is funded by contributions by ODBF. Employees are not required to contribute towards the cost of their benefits. The Scheme is the subject of advice by professional actuaries and annual premiums are paid and charged, after offsetting any reduction in liability or charging any increase in liability, to expenditure in the SOFA each year.

Contribution rates vary according to actuarial reviews undertaken every three years. The contribution rate paid in 2021 was 30.1% of basic salaries each month (2020: 30.1%), which amounted to £192K (2020: £215K). ODBE paid contributions of £28K for staff in the scheme previously employed by ODBF (2020: £20K). No additional contributions were due or paid in 2021 towards the previous deficit (2020: £nil).

A qualified actuary has prepared the pension scheme figures quoted in this note as required under Financial Reporting Standard 102 (FRS102). The basis of FRS102 calculations is largely prescribed, although assumptions about future salary increases, inflation and investment returns rest with the directors, acting on actuarial advice. The actuary then compares the value of the benefits earned to the valuation date (the liabilities) with the value of the assets held by the scheme. Any excess of liabilities over assets represents a deficit in funding; any excess of assets over liabilities represents a surplus in funding.

The FRS102 surplus at the start of 2021, £828K, decreased by £751K during the year to a surplus of £77K at 31 December 2021. The liabilities are valued on the basis of corporate bond yields at the date of calculation which this year was 1.82% (2020: 1.4%), with the assets being taken at market value. The balance sheet is therefore heavily dependent on market conditions at the date of calculation and swings from one year to the next have the potential to be very significant.

In addition, changes to corporate bond yields and mortality assumptions from one year to the next can give rise to volatility in the SOFA figures.

The FRS102 valuation determines the pension figures that must be included in the ODBF accounts. The actuary’s triennial valuation, the “on-going” valuation for the Scheme, is based on different financial assumptions than those used for FRS102. The triennial valuation as at 30 September 2020 was updated to 31 December 2021 by a qualified actuary independent of the scheme’s sponsoring employer and showed a surplus of £77K. The employer contribution rate from 1 January 2021 is 30.1%, in addition to payment of scheme expenses of £57K.

The Scheme will close to future accrual of benefits with effect from 30 June 2022.

64

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

The main financial assumptions under FRS102 are (per annum):

2021 2020
% %
Discount rate 1.82 1.40
Salary increases 2.50 2.50
Inflation (RPI) 3.24 2.95
Inflation (CPI) 2.99 2.70
Allowance for pension in payment increases of RPI or 5% if less 3.10 2.85
Allowance for pension in payment increases of CPI or 5% if less 2.90 2.65

The discount rate is based on yields available on AA rated corporate bonds. The RPI assumption was based on market conditions at the date of the valuation and the same rate less 0.1% has been used for benefits that increase in line with LPI. Salary increases are assumed to run at 0.5% below RPI.

The scheme assets do not include investments issued by the sponsoring employer nor any property occupied by the sponsoring employers. Their 'fair value' at 31 December 2021 was £16,217K (2020: £16,014K) as below:

Deposit
Fixed Interest Bonds
Index-linked gilts
Property
Other		 2021
£’000
-
5,190
6,312
1,681
3,034
16,217		 2020
£’000
159
4,725
6,071
1,141
3,918
16,014

The scheme’s financial position as at 31 December (FRS102 basis) recognised in the Balance Sheet was:

Fair value of plan assets
Present value of defined benefit obligations
Unrecognised surplus
Surplus recognised (see note 17)		 2021
£’000
16,217
(14,793)
(1,347)
77		 2020
£’000
16,014
(14,248)
(938)
828

65

Oxford Diocesan Board of Finance

For the Year Ended 31 December 2021

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

Reconciliation of opening and closing balances of the fair value of plan assets:

Fair value of assets at 1 January
Interest income
Employer contributions
Benefits paid and expenses
Actuarial gain on assets
Fair value of assets at 31 December		 2021
£’000
16,014
223
192
(401)
189
16,217		 2020
£’000
14,443
295
215
(303)
1,364
16,014

Reconciliation of opening and closing balances of the defined benefit obligation:

2021
£’000
Defined benefit obligation at 1 January
14,248
Current service cost
170
Interest cost
198
Benefit paid
(345)
Actuarial losses
522
Loss due to benefit changes
-
Defined benefit obligation at 31 December
14,793
Defined benefit costs recognised in the SOFA:
2021
£’000
Current service cost
170
Loss due to benefit changes
-
Net interest income
(12)
Expenses
56
Total
214
Defined benefit income (costs) recognised in other comprehensive income:
2021
£’000
Return on plan assets – gains
189
Experience gains arising on plan liabilities
86
Effects of changes in demographic & financial assumptions underlying
the present value of the plan liabilities –losses
(608)
Effects of changes in the amount of surplus that is not recoverable
(excluding amounts included in net interest cost)
(396)
Total amount recognised in other comprehensive income
(729)		 2020
£’000
12,383
194
253
(241)
1,658
1
14,248
2020
£’000
194
1
(13)
62
244
2020
£’000
1,364
129
(1,787)
547
253

66

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

Staff Church Workers Pension Fund (CWPF)

ODBF participates in the Pension Builder 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;

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

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

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

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

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

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2021: £250K, 2020: £226K).

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

67

Oxford Diocesan Board of Finance Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

25. Pensions (cont’d)

Staff Church Workers Pension Fund (CWPF)

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Church of England Pension Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time.

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

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

68

Oxford Diocesan Board of Finance

Directors’ Report and Financial Statements

For the Year Ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS (Cont’d)

26. Statements of Financial Activities (Prior) Year

For the year ended 31 December 2020

Note
Income and Endowments from:
Donations
2
Charitable activities
3
Investments
4
Other sources
5
Total
Expenditure on:
Raising and managing funds
6
Charitable activities
7
Other property costs
8
Total
Net (expenditure)/income before
investment gains:
Net (losses)/gains on
investments
Net (expenditure)/income
Total Return transfer
14a
Net income/(expenditure) after
Total Return transfer
Other transfers14b
Other recognised (losses)/gains:
Gains on re-valuation of
tangible fixed assets
Gains on defined benefit
pension scheme
15
25
Net movement in funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted Funds
General &
Designated
Funds
Tangible Fixed
Assets
Property Fund
£’000
£’000
19,292
-
1,719
-
747
-
67
193
21,825
193
320
-
27,520
-
-
237
27,840
237
(6,015)
(44)
2
-
(6,013)
(44)
6,878
-
865
(44)
2,280
(2,214)
3,145
(2,258)
-
253
3,754
-
3,398
1,496
12,718
73,992
16,116
75,488		 Restricted
Funds
£’000
122
662
181
273
1,238
-
975
-
975
263
88
351
-
351
(330)
21
-
-
21
2,240
2,261		 Endowment
Funds
£’000
-
-
2,543
266
2,809
476
95
239
810
1,999
6,097
8,096
(6,878)
1,218
264
1,482
12,574
1,106
15,162
370,616
385,778		 Total
Funds
2020
£’000
19,414
2,381
3,471
799
26,065
796
28,590
476
29,862
(3,797)
6,187
2,390
-
2,390
-
2,390
16,328
1,359
20,077
459,566
479,643

69