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2021-12-31-accounts

ANNUAL REPORT AND

FINANCIAL STATEMENTS

For the year ended 31 December 2021

GUILDFORD DIOCESAN BOARD OF FINANCE

Company number - 225289

Registered charity number – 248245

GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

TABLE OF CONTENTS Page Number
Annual Report 2
Legal Objects 2
Strategic Report:
Strategic Aims 3
Activities and Achievements in the year 4
Future plans 5
Financial review 6
Principal risks and uncertainties 8
Structure and Governance 9
Trustees’ Responsibilities 11
Administrative details 12
Independent Auditor’s Report 14
Consolidated Statement of Financial Activities 17
Consolidated & GDBF Balance Sheets 18
Consolidated Cash Flow Statement 19
Notes to the Financial Statements 20

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT For the year ended 31 December 2021

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

The Directors/Trustees are one and the same and in signing as Trustees they are also signing the strategic report sections in their capacity as directors.

This combined report satisfies the legal requirements for:

LEGAL OBJECTS

The Diocese of Guildford covers most of Surrey and North East Hampshire, one parish in West Sussex and one in the London Borough of Kingston.

The Guildford Diocesan Board of Finance (GDBF)’s principal object is to promote, assist and advance the work of the Church of England in the Diocese of Guildford by acting as the financial executive of the Guildford Diocesan Synod.

The DBF has the following statutory responsibilities:

The strategic priorities of the DBF are established by the Diocesan Synod in communication with Deanery Synods, PCCs, and the Bishop of Guildford (in respect of his responsibility for the provision of the cure of souls).

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

STRATEGIC AIMS

Since its launch in September 2016, the Diocese of Guildford has committed itself to the vision of a Transforming Church, Transforming Lives (TCTL) . Much has been achieved since that time. More than a hundred new worshipping communities have been birthed within our parishes, reaching out to those with whom our regular pattern of services often fails to connect. We have played our part in a remarkable 40% increase across the nation of men and women offering themselves for primary leadership in the church. In 2019 we recorded our first growth for a decade in the number of adults (up 2.5%) and children (up 10%) worshipping in our churches during an average week.

Meanwhile many church communities have become more intentional and purposeful about their mission and calling, seeking God for fresh direction rather than giving way to a narrative of gradual and inevitable decline.

The pandemic of 2020-22 has had a major impact on every aspect of our lives, not least our life as a church; and it’s still too early to measure just what that impact will prove to be in the longer term. What is clear, though, is that we need to refresh our vision of a Transforming Church, Transforming Lives, building on what has been achieved in the past but looking to a future in which our calling is to be ‘humbler, simpler, bolder’ in our service of a God who makes all things new.

In renewing our commitment to a ‘Transforming Church, Transforming Lives’, our vision is of a diverse, growing, intergenerational church at the heart of each community, working alongside our chaplaincies and schools in living and proclaiming the Good News of God in Jesus Christ’.

The TCTL mission strategy envisages individuals and church communities open to the transforming work of God’s Spirit in their own lives, and so becoming agents of Christ’s transformation to the world around them. It is not about asking people to work harder, but to work sharper - becoming more intentional and focussed in how we pray and what we are seeking to do. At its heart lies the vision of a growing, vibrant and generous Christian movement, empowered by the Spirit and rooted in word and sacrament, which confidently proclaims and lives out the Good News of Jesus Christ across the region and beyond.

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT For the year ended 31 December 2021

ACTIVITIES AND ACHIEVEMENTS

2021 was still heavily affected by the pandemic. Churches started re-opening over the Summer but then had to heavily restrict their activities again with the resurgence of Covid in the Winter. At Church House we finished implementing our 15% staff savings and the establishment of one central administrative support team.

The following went well:

However, the following could have gone better:

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

FUTURE PLANS

The major opportunities for 2022 will be:

The major challenges include:

Team Objectives for Church House Guildford for 2022 are:

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

FINANCIAL REVIEW

Financial Performance

Total income for the year was £15,010,000 (2020: £14,329,000). Parish share contributions were £11,530,000 (2020: £11,087,000). This represents a partial recovery in the collection rate to 95.5% (2020: 91.8%) against the amount requested but still well below pre-pandemic levels (2019: 98.7%). Income from statutory fees (weddings & funerals) were £407,000 (2020: £342,000).

GDBF budgets to break even on its general fund before any capital gains/losses. Covid-19 has introduced a significant degree of uncertainty in financial planning. The GDBF continued to make significant savings in the year from cutting staff posts, delaying recruitments, reducing other expenditure and utilising the Coronavirus Job Retention Scheme. Parish share receipts recovered better than budgeted resulting in a net surplus on general funds of £317,000 (2020: £65,000 deficit). The Trustees have allocated £150,000 of this surplus to provide grant support to parishes and clergy in 2022. The remainder offsets the prior year deficit and provides some additional general funds as we face the continuing uncertainties of the longtail impacts of Covid combined with increasing inflation and wider economic uncertainty.

There was an overall net increase in funds of £49,284,000 (2020: £12,096,000). Property values of tangible fixed assets continued to increase gaining by £44,344,000 (2020: £10,080,000) as did investments (including investment properties) increasing by £4,284,000 (2020: £1,240,000). Asset prices continued to rise during the year but the trustees also commissioned a programme of independent property valuations which indicated that the book values of our properties needed to be further increased. There was a net actuarial loss on pension funds of £34,000 (2020: £2,000 loss).

The financial stability of the DBF depends on the financial strength of its parishes. This applies particularly to Guildford which lacks historic reserves and has the highest dependency on parish share of any Diocese. Covid-19 has had a significant impact on parish finances reducing parish income on average by some 20% particularly because of disappearing rental income. Many were able to mitigate this through cost savings, raising additional donations from Church members and/or utilising reserves. However, we have moved from having c.10% of parishes with significant financial issues to c.30%. We implemented a ‘Health and viability’ review of all our parishes in 2020 and work on that continues implementing a significant programme of re-organisations including new plants and growth initiatives to address the long-term sustainability for our parishes and therefore for the DBF.

Balance sheet position

The balance sheet position remains strong. However, while net assets at the balance sheet date totalled £215m (2020: £166m), most of that represents properties in use for ministry whose value amounted to £186m (2020: £146m). Much of the remainder of the assets shown in the balance sheet are held in restricted funds and cannot necessarily be used for the general purposes. Note 21 gives further detail of the allocation of assets to funds.

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

Reserves policy

Free reserves

Recognising that the Diocese is heavily reliant on parish share receipts and that the major expenditure is on the clergy and lay staff to keep the organisation in operation, the Bishop’s Council has set a minimum level of general free reserves, excluding fixed assets, of two months’ staff and stipend costs which for 2021 was £1.4m. The balance of reserves excluding fixed assets on the general fund at 31 December was £2.0m (2020: £1.7m).

The DBF also has a policy of holding on deposit, or otherwise readily available within the Glebe, Pastoral Account or other suitable funds, sufficient cash over and above funds to meet normal cashflows to be able to purchase two houses of modest value. At 31 December 2021 the DBF had available cash balances less short-term borrowings of £2.2m (2020: £2.1m) excluding funds restricted to schools and other specific purposes.

Designated funds

The Trustees may designate unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. The balances and the intended use of each reserve is set out in notes 21 and 22. At 31 December 2021 total designated reserves were £2.5m (2020: £2.3m).

Restricted and endowment funds

As at 31 December 2021 restricted funds were £2.5m (2020: £1.7m) and endowment funds £208.2m (2020: £160.1m). The balances and purposes of these are set out in notes 21 and 22.

Grant making policy

The DBF gives grants from funds established in the annual budget which is approved by Synod and is in line with its objectives. The main grants given in the year are set out within note 9.

Investment policy and performance

The DBF has power to invest funds not immediately required for operational purposes in such concerns, securities or properties as it thinks fit. Non-property financial investments at 31 December 2021 had a market value of £9.9m (2020: £4.7m) of which £9.0m (2020: £3.9m) were invested within the CBF Church of England investment funds managed by CCLA Investment Management Limited. The performance of CCLA investment management is assessed against relevant benchmarks for the underlying investments. The total return on non-property financial investments was 15.3% (2020: 10.3%). The Trustees consider that the performance continues to be very good. As a participant in the CBF Church of England Funds managed by CCLA Investment Management Limited, the DBF adopts the ethical investment policies of those funds.

Property investments are primarily in residential property with some glebe land within the Diocese of Guildford. It also includes £2.1m (2020 £2.1) of disused school sites. The total market value at 31 December 2021 was £17.5m (2020: £14.0m). The Trustees maintain a higher level of residential property investments than financial because a major potential area of expenditure for the Diocese is on residential property for delivering ministry and its residential property investments act as a hedge against that exposure. However, it is a non-diversified, non-liquid asset subject to the risks of the UK housing market and the Trustees have adopted a policy to move funds from residential property to financial funds over a number of years. Board of Education, with the DBF as trustees, review how best to realise value on the disused school sites to support Diocesan schools and education activities.

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees are responsible for the identification, mitigation and or management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is subject to review by the Trustees on an annual basis. The key strategic risk is the slow decline in Church membership and the increasing age profile. Much of the report has detailed our strategy to respond to this. Other important risks are highlighted as follows with the associated mitigation strategies:

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

STRUCTURE AND GOVERNANCE

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 agreed 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 Pension 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 itself is divided into twelve 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, in a similar way to that in which the bishop shares responsibilities with the Diocesan synod.

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

The Guildford Diocesan Board of Finance (DBF) is a company limited by guarantee (No. 225289) and a registered charity (No. 248245) governed by its memorandum and articles of association.

The DBF’s principal activity is to promote, assist and advance the work of the Church of England within the Diocese of Guildford. It was established in its present form in 1927 and is successor in title to the Guildford Diocesan Trustees.

Governance and policy of the DBF is the responsibility of the Directors, who are also members of the DBF and Trustees for the purposes of charity law. The details of Trustees who served during the year are set out on page 12.

The Diocesan synod, the statutory governing body of the Diocese, is an elected body drawn from across the Diocese with responsibility for setting the vision and strategy of the Diocese, guided by the bishop’s staff team. The synod membership is elected every three years, the last elections having been in September 2021. The Synod elects 12 Trustees of the DBF. Whilst the DBF is a separate legal entity, with clear responsibilities under both company and charity law, as well as a governing memorandum and articles of association, by virtue of the National Institutions Measure 2000 the DBF is subject to the direction of the synod in all its activities, unless such direction is not in accordance with the governing documents or statutory regulations.

Historical assets arising from unexpended accumulations of sale proceeds of redundant Church of England school properties are accounted for in the restricted Church Schools fund and are managed by the DBF in consultation with the Diocesan Board of Education.

Decision making structure

Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of Guildford are set by the Diocesan synod, and the DBF. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Diocesan Secretary and Bishop’s staff team. The DBF meets once a year in general meeting to receive and approve the annual report and financial

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

statements and to appoint the auditors. The Diocesan Synod each year receives and agrees the annual budget, prepared and approved by the Trustees. The Trustees, meeting within the context of the Bishop’s Council & Standing Committee, hold 10 meetings during the year to formulate and coordinate policies on mission, ministry and finance by:

The Trustees are assisted in their work by the Finance and Audit Sub Committee which monitors management accounts and budget, the use of assets and investment policies and makes recommendations on areas such as grants and loans.

Trustee recruitment, selection and induction

Trustees are members of the Bishop’s Council & Standing Committee and are selected as set out above. Trustees are given induction at the outset of the triennium and at other times as appropriate. They are also informed before seeking membership and, at all other relevant times, of the role and function of the Committee. Some staff hold the title of ‘Director’, but this relates to their function within the organisation and has no legal meaning within the terminology associated with the Companies Act. All Trustees are required to sign the code of practice and maintain their entry in the record of declarations of interest and loyalty.

Remuneration of key management personnel

Emoluments of higher-paid employees are determined by the Bishop of Guildford in consultation with the Chair of the DBF and other members of Bishop’s Council as relevant. Procedures include regular appraisals and benchmarking of remuneration.

Delegation of day to day delivery

The Trustees and the sub-committee which assists them in the fulfilment of their responsibilities, rely upon the Diocesan Secretary and his colleagues for the delivery of the day to day activities of the DBF. The Diocesan Secretary and other members of Bishop’s staff team are given specific and general delegated authority to deliver the business of the DBF in accordance with the policies framed by the Trustees.

Funds held as Custodian Trustee

The DBF is custodian Trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and churchwardens (Trusts) Measure 1964 where the managing Trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the DBF does not control them, and they are segregated from the DBF’s own assets by means of a separate bank account and accounting system. Further details of financial trust assets, whose market value amounted to £7.2m (2020: £7.0m) are summarised in note 24. Where properties are held as custodian Trustee, the deeds are identified as such and held in safe custody by the DBF’s solicitor.

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

Funds held on behalf of schools

The Board of Education (as incorporated within the DBF) receives contributions from governors of church schools within the Diocese in connection with major repair and capital projects to church schools and also government grants in connection with the same. The Board of Education administers these monies as managing agent and makes appropriate payments to contractors for work carried out. The monies do not belong to the Board of Education and as such the receipts and payments are not treated as income and expenditure in the Statement of Financial Activities. Any monies held at the balance sheet date are treated as creditors on the balance sheet. The amount included in creditors as at 31 December is £1.3m (2020: £1.2m). The income and expenditure relating to school projects not reflected in the Statement of Financial Activities amounted to £2.1m and £2.1m respectively (2020: £4.3m and £4.3m).

TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations .

Company law requires the Trustees (as Directors) to prepare financial statements for each financial year. Under that law the Trustees 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 Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the DBF and of the surplus or deficit of the DBF for that period. In preparing these financial statements the Trustees are required to:

The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the DBF 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 DBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the DBF’s website. Legislation in England/Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.

STATEMENT OF DISCLOSURE TO THE AUDITORS

So far as the Trustees are aware:

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GUILDFORD DIOCESAN BOARD OF FINANCE

ANNUAL REPORT

For the year ended 31 December 2021

ADMINISTRATIVE DETAILS

Trustees

No Trustee had any beneficial interest in the DBF during 2021. The following Trustees served from 1 January 2021 up to the date of this report:

Ex-officio members The Bishop of Guildford The Right Reverend A J Watson The Archdeacon of Surrey The Venerable R P Davies The Archdeacon of Dorking The Venerable M C Breadmore Chair Mr N Lewis (to March 2021) Mr S P Roberts (from March 2021) Bishop nominees The Bishop of Dorking The Right Reverend J Wells The Dean of Guildford The Very Reverend D Gwilliams Co-opted members The Revd P Heidari (July 2021 to December 2021 and from May 2022) The Revd B Hunt (from July 2021 to December 2021) Mrs M Hill (July 2021 to December 2021) Mrs A L Eccleston (to December 2021) Elected by Synod House of Clergy Elected by Synod House of Laity The Revd B Beecroft (from January 2022) Canon P N E Bruinvels The Revd C Bessant (from January 2022) Mr M Elson (to May 2021) The Revd R A Donovan Mr G Everness The Revd N P Hutchinson (to December 2021) Mr G Hampshire (from January 2022) The Revd J O Morris (to May 2022) Mr K R Malcouronne (Vice Chair) The Revd D C Williamson (to December 2021) Mrs M Hill (from January 2022) The Revd R Woodhams (from January 2022) Mr G McFarland (from January 2022) Mr S P Roberts (ex officio from March 2021) Mr N Stuart Key Management Personnel Diocesan Secretary Peter Coles Deputy Diocesan Secretary Chris Ellis (to June 2021) Steve Collins (from July 2021) Director of Mission Team The Revd Peter Harwood Director of Education Alex Tear Director of Finance Malcolm Twigger-Ross Director of HR & Safeguarding Lynda Donaldson Advisors Bankers Lloyds Bank PLC, High Street, Guildford, Surrey, GU1 3AD Auditors Mazars LLP, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS Solicitors Lee Bolton Monier-Williams LLP, 1 The Sanctuary, Westminster SW1P 3JT Charles Russell Speechlys LLP, Bury Fields, Guildford, Surrey, GU2 4AZ Investment managers CCLA Investment Management Limited 80 Senator House, 85 Queen Victoria Street, London, EC4V 4ET Insurers EIG, Beaufort House, Brunswick Road, Gloucester, GL1 1JZ Registered Office: Church House Guildford, 20 Alan Turing Road, Guildford, Surrey GU2 7YF

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GUILDFORD DIOCESAN BOARD OF FINANCE

For the year ended 31 December 2021

ANNUAL REPORT

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report included on pages 3-8 within their capacity as company directors.

ON BEHALF OF THE TRUSTEES

S.P.Roberts

Steve Roberts Chairman 6 June 2022

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GUILDFORD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF GUILDFORD DIOCESAN BOARD OF FINANCE For the year ended 31 December 2021

Opinion

We have audited the financial statements of the Guildford Diocesan Board of Finance (the ‘parent charity’) and its subsidiary (‘the group’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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 trustees’ 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 group’s or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 course of 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 light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Annual Report.

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GUILDFORD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF GUILDFORD DIOCESAN BOARD OF FINANCE For the year ended 31 December 2021

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

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

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GUILDFORD DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF GUILDFORD DIOCESAN BOARD OF FINANCE

For the year ended 31 December 2021

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Use of the audit report

This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Signed: N.J. Wakefield

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS

Date: 28 September 2022

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GUILDFORD DIOCESAN BOARD OF FINANCE

CONSOLIDATED STATEMENT OF THE FINANCIAL ACTIVITIES For the year ended 31 December 2021

Unrestricted funds Unrestricted funds Restricted Endowment Total Total
General
Designated		 Funds Funds 2021 2020
Note £'000 £'000 £'000 £'000 £'000 £'000
Income and endowments from
Donations
Parishes
2		 11,530
-
-
-
11,530
11,087
Archbishops’ Council
2		 92
-
573
-
665
1,006
Other
2		 187
217
4
-
408
266
2 11,809
217
577
-
12,603
12,359
Charitable activities
3		 563
-
198
-
761
663
Other trading activities
4		 646
-
53
-
699
572
Investments
5		 191
-
205
166
562
521
Other
6		 56
-
244
85
385
214
13,265
217
1,277
251
15,010
14,329
Expenditure on:
Raising funds
7		 (521) (30) (47) (45) (643) (480)
Charitable activities
8		 (12,151) (198) (903) (425) (13,677) (13,071)
9 (12,672) (228) (950) (470) (14,320) (13,551)
Net income/(expenditure) before
investment gains		 593
(11)		 327
(219)		 690
778
Net gains on investments 4
-
442
3,838
4,284
1,240
Net income/(expenditure) 597
(11)		 769
3,619
4,974
2,018
Transfers between funds
11		 (223) 167
(20)		 76
-
-
Net income after transfers 374
156
749
3,695
4,974
2,018
Other recognised gains/(losses)
Gains on revaluation of fixed assets -
-
-
44,344
44,344
10,080
Actuarial (losses)/gains on
pension schemes		 (57) -
-
23
(34)		 (2)
Net movement in funds 317
156
749
48,062
49,284
12,096
Total funds brought forward 1,657
2,314
1,717
160,107
165,795
153,699
Total funds carried forward 20 1,974
2,470
2,466
208,169
215,079
165,795

The net surplus of income over expenditure, together with details of income and expenditure required by the Companies Act, may be derived from net income before transfers, excluding movements on endowment funds, in the Statement of Financial Activities above.

GDBF’s company only result (net movement in funds) for the year was £49.3m (2020: £12.1m).

All activities derive from continuing activities. The comparative fund analysis for 2020 is given in note 25.

The Notes form part of the financial statements.

Company Number – 225289

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GUILDFORD DIOCESAN BOARD OF FINANCE

BALANCE SHEETS

For the year ended 31 December 2021

Group Group GDBF GDBF
Note 2021 2020 2021 2020
£'000 £'000 £'000 £'000
Fixed assets
Tangible assets 12 186,555
146,262
186,555
146,262
Investments 13 27,429
19,014
27,429
19,014
213,984
165,276
213,984
165,276
Current assets
Debtors 14 3,079
3,292
3,049
3,219
Cash on deposit 3,730
2,645
3,730
2,645
Cash at bank and in hand 2,760
2,150
2,658
2,102
9,569
8,087
9,437
7,966
Liabilities
Creditors: amounts falling due within
oneyear		 15 (4,365) (3,574) (4,277) (3,511)
Net current assets 5,204
4,513
5,160
4,455
Total assets less current liabilities 219,188
169,789
219,144
169,731
Creditors: Amounts falling due after
more than one year		 16 (3,604) (3,242) (3,604) (3,242)
Provisions for Liabilities 17 (218) (120) (218) (120)
Net assets excluding pension scheme
liabilities		 215,366
166,427
215,322
166,369
Pension scheme liabilities 19 (287) (632) (287) (632)
Total net assets 215,079
165,795
215,035
165,737
The funds of the charity
Unrestricted income funds:
General funds 1,974
1,657
1,930
1,599
Designated funds 2,470
2,314
2,470
2,314
4,444
3,971
4,400
3,913
Restricted funds 2,466
1,717
2,466
1,717
Endowment funds 208,169
160,107
208,169
160,107
Total funds 21 215,079
165,795
215,035
165,737

The endowment fund balance above includes revaluation reserves of £114m (2020: £70m).

The Notes form part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 6 June 2022 and signed on behalf of the Board by:

S.P.Roberts

K.R. Malcouronne

STEVE ROBERTS KEITH MALCOURONNE FCA GDBF Chair GDBF Vice-Chair

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GUILDFORD DIOCESAN BOARD OF FINANCE

CONSOLIDATED CASH FLOW For the year ended 31 December 2021

2021
2020
£'000
£'000
Cash flows from operating activities
Net cash generated in operating activities 1,447
693
Cash flows from investing activities
Dividends, interest and rents from investments 562
521
Purchase of property and equipment (4)
-
Purchase of investments (4,400)
-
Sale of investments 269
449
Sales of property and equipment 3,940
786
Net cash generated by investing activities 367
1,756
Cash flows from financing activities:
Repayments of lending -
66
Cash inflows from new borrowing -
200
Repayments of borrowing (119)
(35)
Net cash (used in)/generated by financing activities (119)
231
Change in cash and cash equivalents 1,695
2,680
Cash and cash equivalents at 1 January 4,795
2,115
Cash and cash equivalents at 31 December 6,490
4,795
Reconciliation of net income to net cash flow from operating activities
Net income 4,974
2,018
Adjustments for:
Depreciation charges 113
113
Gains on property and equipment 31
77
Gains on investments (4,284)
(1,240)
Dividends, interest and rents from investments (562)
(521)
Decrease/(Increase) in debtors 581
(473)
Increase in creditors 594
719
Net cash used in operating activities 1,447
693
Analysis of cash and cash equivalents
Cash on deposit 3,730
2,645
Cash at bank and in hand 2,760
2,150
6,490
4,795

Cash on deposit includes £3,483,000 (2020: £2,343,000) held for the benefit of schools’ buildings.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

1. ACCOUNTING POLICIES

The trustees have considered the potential impacts of Covid-19 on the charity's activities and income streams. The Trustees have also reviewed working capital and capital expenditure requirements and as a result, are satisfied that it is appropriate to prepare these financial statements under the historical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2020), the Companies Act 2006 and applicable accounting standards (FRS102). The charitable company’s own Statement of Financial activities has not been presented as permitted by s.408 of the Companies Act 2006.

The trustees have reviewed the 2022 budget and cash-flow forecasts to 30 June 2023 and believe that it is appropriate for these financial statements to be prepared on a going concern basis.

a) Income

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

b) Expenditure

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

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

1. ACCOUNTING POLICIES (continued)

c) Tangible fixed assets and depreciation

Freehold properties

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

Properties subject to value linked loans

Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are stated using the value of the related loan at the balance sheet date. Each year end the respective property and loan are carried at an index linked current valuation basis.

Investment properties

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

Parsonage houses

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

Assets under construction

New parsonages under construction are included within the functional fixed assets category at the value of costs incurred at the balance sheet date.

Cost values

For the purposes of the calculation of a revaluation reserve, where the actual cost is not known, the cost value is deemed to be the value at which the properties were brought into the current accounting system in 2005.

d) Other tangible fixed assets

e) Other accounting policies

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

1. ACCOUNTING POLICIES (continued)

f) Fund balances

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

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

g) Judgements and key sources or estimation uncertainty

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

h) Financial Instruments

Financial assets measured at fair value comprise listed investments, unlisted investments, value linked loans to parishes and bank deposits. Financial assets at amortised cost comprise trade debtors, other debtors and loans to parishes. Financial liabilities measured at amortised cost comprise pension liabilities, bank loans, other creditors and amounts held for other bodies.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

2. DONATIONS

Unrestricted funds Unrestricted funds Restricted Endowment Total
2021 General Designated Funds Funds 2021
£'000 £'000 £'000 £'000 £'000
Parish Contributions
Current Year Request 12,075
-
-
-
12,075
Shortfall (545) -
-
-
(545)
11,530
-
-
-
11,530
Archbishops' Council 92
-
573
-
665
All Churches Trust -
107
-
-
107
City Church Fund 134
102
-
-
236
Legacies 1
-
-
-
1
Other 52
8
4
-
64
Total 11,809
217
577
-
12,603
Unrestricted funds Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
Parish Contributions
Current Year Request 12,075
-
-
-
12,075
Shortfall (988) -
-
-
(988)
11,087
-
-
-
11,087
Archbishops' Council 28
363
615
-
1,006
All Churches Trust -
105
-
-
105
City Church Fund 107
-
-
-
107
Legacies -
-
-
-
-
Other 11 43 54
Total 11,233
468
658
-
12,359

The majority of the Diocese's mission is funded through the contributions of parishes. In 2021, the Diocese received 95.5% (2020: 91.8%) of the total requested.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

3. CHARITABLE ACTIVITIES

Unrestricted funds Unrestricted funds Restricted Endowment Total
2021 General
Designated		 Funds Funds 2021
£'000
£'000		 £'000 £'000 £'000
Statutory fees 407
-
-
-
407
Social Responsibility projects grant income -
-
111
-
111
Other grants receivable and miscellaneous
income		 156
-
87
-
243
563
-
198
-
761
Unrestricted funds Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
Statutory fees 342 -
-
-
342
Social Responsibility projects grant income -
-
90
-
90
Other grants receivable and miscellaneous
income		 146 -
85
-
231
488 -
175
-
663

4. OTHER TRADING ACTIVITIES

Unrestricted funds Unrestricted funds Restricted Endowment Total
2021 General Designated Funds Funds 2021
£'000 £'000 £'000 £'000 £'000
School Buildings Project Management 82 -
-
-
82
Training Services to Schools 120 -
-
-
120
Rental income on functional property 417 -
53
-
470
Other 27 - - - 27
646 -
53
-
699
Unrestricted funds Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
School Buildings Project Management 80 -
-
-
80
Training Services to Schools 119 -
-
-
119
Rental income on functionalproperty 313 -
60
-
373
512 -
60
-
572

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

5. INVESTMENT INCOME

Unrestricted funds Unrestricted funds Restricted Endowment Total
2021 General Designated Funds Funds 2021
£'000 £'000 £'000 £'000 £'000
Dividends receivable 68
-
46
18
132
Interest receivable 1
-
-
1
2
Rents receivable 122
-
159
147
428
191
-
205
166
562
Unrestricted funds Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
Dividends receivable 72
-
35
13
120
Interest receivable 2
-
2
2
6
Rents receivable 97
-
119
179
395
171
-
156
194
521

6. OTHER INCOME

Unrestricted funds
Restricted
Endowment
Total
2021 General
Designated
Funds
Funds
2021
£'000
£'000
£'000
£'000
£'000
Gains on fixed asset disposals -
-
244
85
329
Coronavirus Job Retention Scheme 56
-
-
-
56
56
-
244
85
385
Unrestricted funds
Restricted
Endowment
Total
2020 General
Designated
Funds
Funds
2020
£'000
£'000
£'000
£'000
£'000
Gains on fixed asset disposals 1
-
16
60
77
Coronavirus Job Retention Scheme 137
-
-
-
137
138
-
16
60
214

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

7. EXPENDITURE ON RAISING FUNDS

7. EXPENDITURE ON RAISING FUNDS
Unrestricted funds Restricted Endowment Total
2021 General
Designated		 Funds Funds 2021
£'000
£'000		 £'000 £'000 £'000
Schools Building Project Management 69
-		 - - 69
Training Services to Schools 86
-		 - - 86
Rental Management Fees 76
-		 8 20 104
Investment Property Costs 73
-		 39 25 137
Support Costs 217
30		 - - 247
521
30		 47 45 643
Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
Schools Building Project Management 79
-
-
-
79
Training Services to Schools 61
-
-
-
61
Rental Management Fees 42
-
3
25
70
Investment Property Costs 79
2
19
6
106
Support Costs 154
10
-
-
164
415
12
22
31
480

8. CHARITABLE ACTIVITIES

8. CHARITABLE ACTIVITIES
Unrestricted funds Restricted Endowment Total
2021 General Designated Funds Funds 2021
£'000 £'000 £'000 £'000 £'000
National Church
Training for ministry 787
-
-
-
787
National Church Establishment 357
-
-
-
357
Retired clergy housing costs 188
-
-
-
188
Other 69
-
-
-
69
Indirect Support Costs 25
3
-
-
28
1,426
3
-
-
1,429
Ministry & Mission
Parish Ministry
Stipends & pension 6,025
-
-
-
6,025
Housing costs 1,909
-
-
6
1,915
Loss on housing disposals -
-
-
298
298
Removal & resettlement grants 133
-
-
-
133
Other expenses 188
24
5
41
258
8,255
24
5
345
8,629
Ministry Support & Training 750
18
778
-
1,546
Indirect Support Costs 1,221
126
-
-
1,347
10,226
168
783
345
11,522
Education & Mission
Schools & Education 308
-
120
80
508
Indirect Support Costs 191
27
-
-
218
499
27
120
80
726
Total 12,151
198
903
425
13,677

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

8. CHARITABLE ACTIVITIES (continued)

8.
CHARITABLE ACTIVITIES (continued)
Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
National Church
Training for ministry 743
-
-
-
743
National Church Establishment 384
-
-
-
384
Retired clergy housing costs 183
-
-
-
183
Other 65
-
-
-
65
Indirect Support Costs 18
-
-
-
18
1,393
-
-
-
1,393
Ministry & Mission
Parish Ministry
Stipends & pension 5,980
-
-
-
5,980
Housing costs 1,577
-
-
38
1,615
Removal & resettlement grants 107
-
-
-
107
Other expenses 211
4
-
23
238
7,875
4
-
61
7,940
Ministry Support & Training 829
-
1,016
-
1,845
Indirect Support Costs 1,097
61
-
-
1,158
9,801
65
1,016
61
10,943
Education & Mission
Schools & Education 353
-
61
81
495
Indirect Support Costs 225
15
-
-
240
578
15
61
81
735
Total 11,772
80
1,077
142
13,071

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

9. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

Activities
undertaken
directly		 Grant
funding of
activities		 Support
costs
2021 Total
2021
£'000 £'000 £'000 £'000
Raising funds 396
-
247
643
Charitable activities
National Church 453
947
29
1,429
Ministry & Mission 10,059
116
1,347
11,522
Education & Mission 508
-
218
726
Total Expenditure 11,416
1,063
1,841
14,320
Grant Funding of Activities
Total
2021 Number Individuals Institutions 2021
From unrestricted funds £'000 £'000 £'000
Archbishops' Council 1 -
947
947
Clergy appointment and resettlement 34 133
-
133
Ordinand Maintenance 18 232
-
232
From restricted funds
Parish Mission & development fund 12 -
116
116
365
1,063
1,428
2020 Total
2020
£'000 £'000 £'000 £'000
Raising funds 316
-
164
480
Charitable activities
National Church 409
965
19
1,393
Ministry & Mission 9,714
71
1,158
10,943
Education & Mission 495
-
240
735
Total Expenditure 10,934
1,036
1,581
13,551

Grant Funding of activities

Total
2020
Number		 Individuals
Institutions
2020
From unrestricted funds £'000
£'000
£'000
Archbishops' Council
1		 -
965
965
From restricted funds
Mission & development fund grants
6		 -
71
71
-
1,036
1,036

Support costs are allocated by the direct allocation of certain costs that relate specifically to activities with the remaining costs allocated on the basis of staff employed in direct activities.

Included within support costs are fees payable to the auditors of £16,000 (2020: £13,000) in respect of audit services.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

9. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS (continued)

Support Costs 2021 2020
£'000 £'000
Diocesan Secretary's Office 107
152
Administration Team 108
-
Communications 137
111
Finance 200
196
Safeguarding 254
124
Human resources 147
194
Diocesan Advisory Committee 76
71
Office Costs 502
419
IT 234
226
Other corporate costs 68
80
Closed Pension Schemes 8
8
1,841
1,581

Support costs increased because of the centralisation of administrative support functions across the organisation into one central team, additional safeguarding costs because of the past cases review activity (including re-allocation of costs that had previously been allocated to Human resources) and the increase in provision for future potential office dilapidations costs.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

10. STAFF & TRUSTEES

10. STAFF & TRUSTEES
Staff Costs 2021
2020
£'000
£'000
Wages and salaries 1,883
1,943
National insurance contributions 188
214
Pension costs 237
186
Total 2,308
2,343
Average number of full-time equivalent people employed by the
group during the year		 2021
2020
No.
No.
Support for parish ministry 23
18
Mission Team 14
20
Schools, Colleges & Universities 6
8
Other diocesan departments 4
4
Total 47
50
By Main Funding Source
Parish Share 43
46
Grants & TradingIncome 4
4
47
50
The average number of individual persons employed by the
group:		 2021
2020
No.
No.
Support for parish ministry 30
23
Mission team 18
27
Schools, Colleges & Universities 8
9
Other diocesan departments 4
5
Total 60
64

The number of employees whose emoluments (including benefits in kind but excluding pension contributions) amounted to over £60,000 in the year was as follows:

amounted to over £60,000 in the year was as follows:
Emoluments falling between: 2021 2020
No. No.
£90,001 to £100,000 - 1
£80,001 to £90,000 1 -
£70,001 to £80,000 1 2
£60,001 to £70,000 3 1

Pension contributions of £32,000 (2020: £22,000) were paid in respect of these people.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

10. STAFF & TRUSTEES (continued)

The DBF paid an average of 167 (2020: 167) stipendiary clergy and licensed lay workers as office-holders holding parochial or Diocesan appointments in the Diocese.

parochial or Diocesan appointments in the Diocese.
2021
2020
£'000
£'000
Stipends 4,457
4,642
362
366
20
19
1,642
1,119
311
519
National Insurance
Apprenticeship Levy
Pension Contributions
Current year
Deficit reduction
6,792
6,665

Included within staff and stipend costs is £32,000 (2020: £30,000) in respect of redundancy payments.

Key Management Personnel

Key management personnel are deemed to be those having authority and responsibility delegated to them by the Trustees for planning, directing and controlling the activities of the Diocese. Key management personnel are set out on page 12. Remuneration, pensions and expenses for these employees amounted to £423,000 (2020: £441,000)

Trustees

No Trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses, totalling £15,000 (2020: £15,000) in respect of General Synod duties, duties as archdeacon or area/rural dean, and other duties as Trustees. The following table gives details of the Trustees who were in receipt of a stipend and/or housing provided by the DBF during the year:

or housing provided bythe DBF duringtheyear:
The Bishopof Dorking Stipend
-		 Housing
The Archdeacon of Dorking
The Archdeacon of Surrey
The Revd R A Donovan
The Revd P Heidari
The Revd B Hunt
The Revd N P Hutchinson
The Revd J O Morris
The Revd D C Williamson

The DBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the Diocese, other than bishops and cathedral staff. It is also responsible for the provision of housing for stipendiary clergy in the Diocese including the suffragan bishop but excluding Diocesan bishop and cathedral staff. The amount of stipend, funded by the DBF, for clergy who are trustees was £35,920 (2020: £35,920) for Archdeacons and £28,300 (2020: £28,300) for other clergy.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

11. TRANSFERS BETWEEN FUNDS

Unrestricted funds
Restricted
Endowment
2021 General
Designated
Funds
Funds
£'000
£'000
£'000
£'000
From General Fund to Glebe Capital being the difference between
contributions paid less interest on Clergy Pension Scheme		 (311)
-
-
311
To fund triennial clergy conference (15)
15
-
-
From General Fund to Growth Fund (85)
85
-
-
From Growth fund to General fund 2
(2)
From Growth Fund to Strategic Development Fund (116)
116
From Board Endowment to Diocesan house fund -
185
-
(185)
From Schools Fund to General Fund to support education
activities		 136
-
(136)
-
From retirement fund togeneral fund for clergyretirement costs 50
-
-
(50)
(223)
167
(20)
76
Unrestricted funds
Restricted
Endowment
General
Designated
Funds
Funds
£'000
£'000
£'000
£'000
(519)
-
-
519
(15)
15
-
-
(85)
85
-
-
(114)
114
-
88
-
(88)
149
-
(149)
-
201
(201)
50
-
-
(50)
(420)
74
166
180
2020
From General Fund to Glebe Capital being the difference
between contributions paid less interest on Clergy Pension
Scheme
To fund triennial clergy conference
From General Fund to Growth Fund
From Growth Fund to Strategic Development Fund
From Board Endowment to Diocesan house fund
From Schools Fund to General Fund to support education
activities
Reclassification of certain Education restricted funds from
endowment
From retirement fund to general fund for clergy retirement
costs

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

12. TANGIBLE FIXED ASSETS

All of the properties in the balance sheet are freehold and are vested in the DBF, except for benefice houses which are vested in the incumbent. Some properties have been purchased with the help of value-linked loans mainly from the Church Commissioners; when disposed of the appropriate share of the net sale proceeds will be remitted to the lender, and the related loan liability extinguished. The value of such properties included above amounts to £641,000 (2020: £518,000).

Group and GDBF
Freehold
Land and
Buildings
Leasehold
Buildings
Office
Equipment		 Total
£'000
£'000
£'000		 £'000
Cost or valuation
Balance at 1 January 2021 145,654
923
435
147,012
Additions 4 4
Disposals (3,971)
-
-
(3,971)
Revaluation/impairment 44,373
-
-
44,373
Balance at 31 December 2021 186,060
923
435
187,418
Accumulated depreciation
Balance at 1 January 2021 -
358
392
750
Depreciation charge foryear -
91
22
113
Balance at 31 December 2021 -
449
414
863
Net book value
At 31 December 2021 186,060
474
21
186,555
At 31 December 2020 145,654
565
43
146,262
Revaluation as above 44,373
Revaluation of value linked loan finance (29)
Amount disclosed in SOFA 44,344

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

13. INVESTMENTS

13.
INVESTMENTS
Group and GDBF
1 January
2021		 Additions Disposals Transfers Change in
market value		 31 December
2021
£'000 £'000 £'000 £'000 £'000 £'000
Investment property 14,030
-
-
-
3,481
17,511
CBF Investment Fund 3,937
4,400
-
-
659
8,996
Other listed investments 718
-
-
-
144
862
Program related 329
-
(269)		 -
-
60
19,014
4,400
(269)		 -
4,284
27,429

The CBF Investment Fund is managed by CCLA. Program related investments are equity share loans on 2 properties for clergy housing in partnership with the Methodist church. Such investments are made directly in pursuit of the Board’s charitable purposes rather than for financial investment purposes. The amounts shown represent the sums originally advanced as required under FRS102. The loans are not expected to be repaid in the short term.

Investment in Subsidiary

Guildford Diocesan Board of Finance has one wholly owned subsidiary, Guildford Diocesan Services Limited (GDSL) which has a share capital of £1. The trading activities of GDSL primarily consist of the supply of building project management and training services to church schools in the Diocese. The profits of GDSL are normally wholly gift aided to the DBF. In accordance with revised guidance issued by the Financial Reporting Council these are now accounted for when paid and not set against the year to which they relate. A summary of the financial results and funds of GDSL which are consolidated in these financial statements is as follows:

Unrestricted funds Unrestricted funds Restricted Endowment Total
2021 General
Designated		 Funds Funds 2021
£'000
£'000		 £'000 £'000 £'000
Other trading activities 202
-
-
-
202
Fundraising costs (158)
-
-
-
(158)
Gift to GDBF (58)
-
-
-
(58)
Net income and net movement in funds (14)
-
-
-
(14)
Funds at 1 January 58
-
-
-
58
Funds at 31 December 44
-
-
-
44
Unrestricted funds Restricted Endowment Total
2020 General Designated Funds Funds 2020
£'000 £'000 £'000 £'000 £'000
Other trading activities 200
-
-
-
200
Fundraising costs (142) -
-
-
(142)
Gift to GDBF (56) -
-
-
(56)
Net expenditure and net movement in funds 2
-
-
-
2
Funds at 1 January 56
-
-
-
56
Funds at 31 December 58
-
-
-
58

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

14. DEBTORS

Group Group GDBF GDBF
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Due within one year
Parish Share 55
87
55
87
Fees 97
73
97
73
Prepayments and accrued income 295
416
279
376
Other debtors 65
515
51
482
512
1,092
481
1,019
Due after more than one year
Loans to parishes -
-
-
-
Loans to parishes - housing 2,218
1,850
2,218
1,850
Loans to retired clergy 325
325
325
325
Other loans 25
25
25
25
2,568
2,200
2,568
2,200
Total 3,079
3,292
3,049
3,219

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group GDBF GDBF
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Amounts held on behalf of school governors (3,494) (2,542) (3,494) (2,542)
Other creditors and accruals (715) (792) (628) (729)
Loan repayments due in oneyear (156) (240) (155) (240)
(4,365) (3,574) (4,277) (3,511)

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
GDBF
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Loans in respect of house purchases
Church Commissioners value-linked loans (2,398)
(2,002)
(2,398)
(2,002)
Church Commissioners other loans (206)
(240)
(206)
(240)
Other bank loans (1,000)
(1,000)
(1,000)
(1,000)
(3,604)
(3,242)
(3,604)
(3,242)
The above loans fall due for repayment:
Between one and two years (36)
(39)
(36)
(39)
Between two and five years (1,108)
(117)
(1,108)
(117)
In fiveyears and more (2,460)
(3,086)
(2,460)
(3,086)
(3,604)
(3,242)
(3,604)
(3,242)

The loans from the Church Commissioners include £1.9m (2020: £1.6m) used to purchase houses for parishes and are matched by loans from parishes included in debtors.

17. PROVISIONS FOR LIABILITIES

Group and GDBF
2021 2020
£'000 £'000
Diocesan Office Dilapidations 218
120

The provision is in respect of reinstatement obligations related to 20 Alan Turing Road, Guildford, a leasehold property and will be utilised at the end of the lease.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

18. FINANCIAL INSTRUMENTS

18.
FINANCIAL INSTRUMENTS
2021 2020
£'000 £'000
Financial assets measured at fair value 12,643 9,404
Financial assets measured at amortised cost 2,336 2,788
Financial liabilities measured at amortised cost (7,678) (7,096)
19.
PENSIONS		 19.
PENSIONS
Defined Benefit Pension Liability Group GDBF
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Church of England Funded Pension Scheme (Clergy) 287
621
287
621
Church Workers Pension Fund(layStaff) -
11
-
11
287
632
287
632

Church of England Funded Pension Scheme (Clergy)

Guildford DBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the 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 contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2021:£1,642,000; 2020: £1,119,000), plus the figures highlighted in the table below as being recognised in the SoFA, giving a total charge of £1,620,000 for 2021 (2020: £1,131,000).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2019. The 2019 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumption

Following the 31 December 2019 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below. .

% of pensionable stipends January 2019 to January 2021 to
December 2020 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2020 the deficit recovery contributions under the recovery plan in force at that time were 11.9% of pensionable stipends until December 2025. As at 31 December 2021 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.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

19. PENSIONS (Continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2020 and over 2021 is set out in the table below.

2021
2020
£'000
£'000
Balance sheet liability as at 1 January 621
1,138
Contributions paid (312)
(529)
Interest cost * 1
10
Remainingchange to the balance sheet liability* (23)
2
Balance sheet liability as at 31 December 287
621
* Recognised in SOFA
Liability < 1 Year 287
62
Liability > 1 Year -
559

The remaining change to the balance sheet liability comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.

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

December 2021 December 2020 December 2019
Discount rate 0.2% pa 0.2% pa 1.1% pa
Price inflation 3.1% pa 3.1% pa 2.8% pa
Increase to total pensionable payroll 1.6% pa 1.6% pa 1.3% pa

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

Church Workers Pension Fund: Defined Benefits Scheme

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

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.

Defined Benefits Scheme

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

For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further subpool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2021: £Nil, 2020: £Nil) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £58,000 for 2021 (2020: £Nil).

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

19. PENSIONS (Continued)

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

A valuation of DBS is carried out once every three years. The most recent was carried out as at 31 December 2021. In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employers’ sub-pools to the Life Risk Section. This increased the Employer contributions that would otherwise have been payable.

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay expenses of £6,100 per year to March 2020 and £6,700 per year thereafter. In addition, deficit payments of £92,600 per year have been agreed until 1 October 2021 in respect of the shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer’s financial statements. Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:

2021
2020
£'000
£'000
Balance sheet liability as at 1 January 11
104
Contributions paid (68)
(93)
Interest cost* -
-
Remainingchange to the balance sheet liability* 57
-
Balance sheet liabilityas at 31 December -
11
* Recognised in SOFA

The remaining change to the balance sheet liability comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.

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

December 2021 December 2020 December 2019
Discount Rate 0.0% 0.0% 1.5%

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

The next valuation of the scheme is being carried out as at December 2022.

Pension Builder Scheme

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

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 for members for payment from retirement, 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 that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

19. PENSIONS (Continued)

The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers. This 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 contributions payable (2021: £188,000, 2020: £186,000)

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

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 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, Guildford DBF could become responsible for paying a share of that employer’s pension liabilities.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

20. SUMMARY OF FUND MOVEMENTS

2021 1 January
2021		 Income Expenditure Transfers Gains and
losses		 31 December
2021
£'000 £'000 £'000 £'000 £'000 £'000
Unrestricted funds
General 1,657
13,265
(12,672)		 (223) (53) 1,974
Designated
TCTL growth fund 952
115
(18)		 83
-
1,132
Strategic change fund 513
102
(25)		 (116) -
474
Development fund 812
-
-
-
-
812
Diocesan Premises reserve -
-
(185)		 185
-
-
Clergy conference fund 26
-
-
15
-
41
Church fabric repair fund 11
-
-
-
-
11
2,314
217
(228)		 167
-
2,470
Restricted income funds
Pastoral fund 739
291
(10)		 -
401
1,421
Strategic Development Fund -
146
(262)		 116 -
Glebe income 298
26
(32)		 -
-
292
E M Woods trust income 121
9
-
-
-
130
Moor Park Trust 81
3
-
-
13
97
Regional Training 31
62
(64)		 -
-
29
Community Engagement 30
111
(87)		 -
-
54
Church Schools income 121
116
(79)		 (86) 3
75
Church Schools Building Projects -
-
-
-
-
-
All Saints Fleet 16
-
-
-
-
16
Moss Lane Fund 23
49
(42)		 -
(1)		 29
Partridge Fund 234
5
-
(50)		 26
215
Nugent Income -
29
(10)		 -
-
19
Ministerial Education 23
430
(364)		 -
-
89
1,717
1,277
(950)		 (20) 442
2,466
Endowment funds
Expendable endowment
Board endowment 11,830
54
(312)		 (185) 1,402
12,789
Onslow bequest 480
6
-
-
35
521
E M Woods trust capital 308
-
-
-
45
353
Church schools capital 4,180
-
(79)		 -
554
4,655
Retired clergy housing 7,920
91
(50)		 (50) 1,341
9,252
Benefice houses fund 111,387
85
(11)		 -
37,827
149,288
Nugent fund 3,311
15
(13)		 -
471
3,784
Permanent endowment
Glebe capital fund 19,083
-
(5)		 311
6,299
25,688
E Newill trust 251
-
-
-
36
287
Budgen legacy 599
-
-
-
87
686
G Nash will 350
-
-
-
50
400
Power legacy 222
-
-
-
32
254
Toulmin will 87
-
-
-
12
99
St Agnes Lodge fund 99
-
-
-
14
113
160,107
251
(470)		 76
48,205
208,169
Total funds 165,795
15,010
(14,320)		 -
48,594
215,079

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

20. SUMMARY OF FUND MOVEMENTS (continued)

2020 1 January
2020		 Income Expenditure Transfers Gains and
losses		 31
December
2020
£'000 £'000 £'000 £'000 £'000 £'000
Unrestricted funds
General 1,722
12,542
(12,187)		 (420) -
1,657
Designated
TCTL growth fund 876
105
-
(29)		 -
952
Strategic change fund 150
363
-
-
-
513
Development fund 812
-
-
-
-
812
Diocesan Premises reserve -
-
(88)		 88
-
-
Clergy conference fund 15
-
(4)		 15
-
26
Church fabric repair fund 11
-
-
-
-
11
1,864
468
(92)		 74
-
2,314
Restricted income funds
Pastoral fund 698
17
(3)		 -
27
739
Strategic Development Fund -
189
(303)		 114 -
Glebe income 297
19
(18)		 -
-
298
E M Woods trust income 111
10
-
-
-
121
Moor Park Trust 73
3
-
-
5
81
Regional Training 23
85
(78)		 -
1
31
Community Engagement 111
90
(171)		 -
-
30
Church Schools income 211
128
(23)		 (195) -
121
Church Schools Building Projects -
-
-
-
-
-
All Saints Fleet -
-
-
16
-
16
Moss Lane Fund -
50
(40)		 13
-
23
Partridge Fund -
5
-
218
11
234
Ministerial Education 17
469
(463)		 -
-
23
1,541
1,065
(1,099)		 166
44
1,717
Endowment funds
Expendable endowment
Board endowment 11,097
7
(10)		 (88) 824
11,830
Onslow bequest 466
-
-
-
14
480
E M Woods trust capital 288
-
-
-
20
308
Church schools capital 4,135
-
(80)		 (201) 326
4,180
Retired clergy housing 7,703
142
(62)		 (50) 187
7,920
Benefice houses fund 103,265
15
(6)		 -
8,113
111,387
Nugent fund 3,154
3
(12)		 -
166
3,311
Permanent endowment
Glebe capital fund 16,959
87
(3)		 519
1,521
19,083
E Newill trust 235
-
-
-
16
251
Budgen legacy 561
-
-
-
38
599
G Nash will 328
-
-
-
22
350
Power legacy 208
-
-
-
14
222
Toulmin will 81
-
-
-
6
87
St Agnes Lodge fund 92
-
-
-
7
99
148,572
254
(173)		 180
11,274
160,107
Total funds 153,699
14,329
(13,551)		 -
11,318
165,795

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

21. SUMMARY OF ASSETS BY FUND

As at 31 December 2021 Tangible
fixed assets		 Investments Current
assets		 Creditors Net assets
£'000 £'000 £'000 £'000 £'000
Unrestricted funds
General 24
104
2,963
(1,117)		 1,974
Designated
TCTL growth fund -
-
1,146
(14)		 1,132
Strategic change fund -
-
474
-
474
Development fund -
-
812
-
812
Diocesan Premises reserve 87
-
131
(218)		 -
Clergy conference fund -
-
41
-
41
Church fabric repair fund -
-
11
-
11
87
-
2,615
(232)		 2,470
Restricted income funds
Pastoral fund -
1,188
233
-
1,421
Strategic Development Fund -
-
-
-
-
Glebe income -
-
292
-
292
E M Woods trust income -
-
130
-
130
Moor Park Trust -
105
(8)		 -
97
Regional Training -
-
29
-
29
Community Engagement -
-
54
-
54
Church schools income 386
-
(292)		 (19) 75
Church Schools Building Projects -
-
3,520
(3,520)		 -
All Saints Fleet -
-
16
-
16
Moss Lane Fund -
-
29
-
29
Partridge Fund -
205
10
-
215
Nugent Income -
-
19
-
19
Ministerial Education -
-
89
-
89
386
1,498
4,121
(3,539)		 2,466
Endowment funds -
Expendable endowment -
Board endowment 12,079
4,187
(1,475)		 (2,002) 12,789
Onslow bequest -
498
23
-
521
E M Woods trust capital -
358
(5)		 -
353
Church schools capital 104
4,872
(321)		 -
4,655
Retired clergy housing 2,548
5,414
1,290
-
9,252
Benefice houses fund 152,396
-
(1,811)		 (1,297) 149,288
Nugent fund -
3,501
283
-
3,784
Permanent endowment
Glebe capital fund 18,931
5,160
1,884
(287)		 25,688
E Newill trust -
287
-
-
287
Budgen legacy -
686
-
-
686
G Nash will -
398
2
-
400
Power legacy -
254
-
-
254
Toulmin will -
99
-
-
99
St Agnes Lodge fund -
113
-
-
113
186,058
25,827
(130)		 (3,586) 208,169
Total funds 186,555
27,429
9,569.0
(8,474.0)		 215,079

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021

21. SUMMARY OF ASSETS BY FUND (continued)

As at 31 December 2020 Tangible
fixed assets		 Investments Current
assets		 Creditors Net assets
£'000 £'000 £'000 £'000 £'000
Unrestricted funds
General 41
269
2,243
(896)		 1,657
Designated
TCTL growth fund -
-
966
(14)		 952
Strategic change fund -
-
513
-
513
Development fund -
-
812
-
812
Diocesan Premises reserve 173
-
(53)		 (120) -
Clergy conference fund -
-
26
-
26
Church fabric repair fund -
-
11
-
11
173
-
2,275
(134)		 2,314
Restricted income funds
Pastoral fund -
785
(46)		 -
739
Strategic Development Fund -
-
-
-
-
Glebe income -
-
298
-
298
E M Woods trust income -
-
121
-
121
Moor Park Trust -
92
(11)		 -
81
Regional Training -
-
31
-
31
Community Engagement -
-
30
-
30
Church Schools income 391
-
(257)		 (13) 121
Church Schools Building Projects -
-
2,549
(2,549)		 -
All Saints Fleet -
-
16
-
16
Moss Lane Fund -
-
23
-
23
Partridge Fund -
180
54
-
234
Ministerial Education -
-
23
-
23
391
1,057
2,831
(2,562)		 1,717
Endowment funds -
Expendable endowment -
Board endowment 12,601
2,751
(1,520)		 (2,002) 11,830
Onslow bequest -
213
267
-
480
E M Woods trust capital -
313
(5)		 -
308
Church schools capital 104
4,318
(194)		 (48) 4,180
Retired clergy housing 2,796
3,691
1,433
-
7,920
Benefice houses fund 114,826
-
(2,134)		 (1,305) 111,387
Nugent fund -
1,981
1,330
-
3,311
Permanent endowment
Glebe capital fund 15,330
2,815
1,559
(621)		 19,083
E Newill trust -
251
-
-
251
Budgen legacy -
599
-
-
599
G Nash will -
348
2
-
350
Power legacy -
222
-
-
222
Toulmin will -
87
-
-
87
St Agnes Lodge fund -
99
-
-
99
145,657
17,688
738
(3,976)		 160,107
Total funds 146,262
19,014
8,087.0
(7,568.0)		 165,795

Page | 44

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

22. DESCRIPTION OF FUNDS

General fund

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

Mission & EIG fund Designated fund to help with parish growth initiatives. TCTL Growth fund Designated fund for Transforming Church, Transforming Lives initiatives. Strategic change fund Designated fund to implement change processes deriving from transforming

Designated fund to implement change processes deriving from transforming church, transforming lives initiatives.

Development fund Designated fund for development projects of the Diocese. The principal designation is to fund a move of Diocesan House up to the Cathedral site. This project is being held back by planning considerations.

Diocesan Premises reserve

Clergy conference fund Church fabric repair fund Pastoral fund

Designated fund to spread the impact of rent-free periods and costs of refurbishment and dilapidations.

Designated fund for the triennial Diocesan clergy conference.

Designated fund from which to make grants to parishes for fabric repair.

The Diocesan pastoral account is regulated by the provisions of the Pastoral Measure 2011. The restricted purposes for which the account may be used are:

Glebe income fund

Accumula t ed income from glebe capital used for clergy stipends and housing costs.

Accumulated investment income for needy and retired clergy and their dependants.

E M Woods trust income

Moor Park Trust Expendable gift from Moor Park College for adult Christian education work. Regional training Restricted fund for the activity of the regional training Diocesan partnership. Community Engagement Grants and related activity for Community Engagement projects. Church Schools income

Restricted fund for the activity of the regional training Diocesan partnership.

Accumulated income from uniform statutory trusts (church schools fund capital) used for supporting church schools in the Diocese, both buildings and education.

Funds for Church School Building Projects.

Church Schools Building Projects All Saints Fleet

Funds to support mission in All Saints Fleet.

Funds to support mission in Godalming.

Moss Lane Fund

Partridge Fund Funds to support Church of England Schools.

Ministerial Education

Income and Expenditure on the ministerial education of ordinands.

Board endowment Expendable endowment fund for capital growth. Income is credited to the general fund for the general purposes of the Diocese.

Onslow bequest

E M Woods trust capital

Expendable endowment for the support of clergy and building churches in Surrey.

Expendable endowment to produce income for the benefit of needy or retired clergy and their dependants.

.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

22. DESCRIPTION OF FUNDS (continued)

Church schools fund capital Expendable endowment arising from sale proceeds of redundant Church of England School properties. Its use is restricted by law to capital and maintenance work to Church of England schools in the Diocese. Income arising may be used to support education generally in the Diocese. The DBF is Trustee of these funds, which are managed on a day to day basis by and in consultation with the Board of Education Glebe capital fund The glebe capital fund was created from the Diocesan stipends fund capital account held on behalf of the Diocese by the Church Commissioners under the Endowments and Glebe Measure 1976, and glebe assets, to provide income for clergy stipends. It represents glebe assets, 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. Besides glebe property, the funds may be invested in the CBF Church of England Property, Investment or Fixed Interest Securities Funds, or simply held on deposit. Income is credited to the general fund for the payment of stipends and benefice house outgoings. Retired clergy fund Expendable endowment for the provision of housing for retired clergy. Income is credited to this same fund. Benefice houses fund The benefice houses 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 held on suspense by the Church Commissioners. Although benefice houses are vested in incumbents for the time being of benefices concerned, the DBF is obliged to maintain them, to ensure that there are sufficient benefice houses for the pastoral structure of the Diocese, and receives the sale proceeds of benefice houses surplus to requirements into the Diocesan pastoral account. Nugent fund Expendable endowment created by the lifetime gift of the late Lord Nugent. E Newill trust Permanent endowment to provide income for family needs. Income is credited to the general fund. Budgen legacy Permanent endowment to provide income for general church purposes. Income is credited to the general fund. G Nash will Permanent endowment to provide income for any DBF purposes. Income is credited to the general fund. Power legacy Permanent endowment to provide income for clergy stipends. Income is credited to the general fund. Toulmin will Permanent endowment to provide income for the training of ordination candidates. Income is credited to the general fund. St Agnes Lodge fund Permanent endowment arising from the sale of St Agnes Lodge, to provide income for social responsibility work in the Diocese. Income is credited to the general fund.

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

23. CAPITAL AND OTHER COMMITMENTS

At 31 December, the board had no capital commitments (2020: None).

The DBF had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

following periods:
2021
2020
Payment due: £'000
£'000
Not later than one year 249
249
Later than oneyear and not later than fiveyears 62
162
311
411

The DBF had no other off-balance sheet arrangements.

24. FUNDS HELD AS CUSTODIAN TRUSTEE

The DBF acts as custodian Trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing Trustees are parochial church councils and others. Assets held in this way are not aggregated in these financial statements as the DBF does not control them. The financial assets held in this way are as follows:

2021
2020
£'000
£'000
CCLA Church of England Investment Fund (income) 5,530
4,823
CCLA Church of England Fixed Interest Securities Fund 129
138
CCLA Property Fund 55
48
Other common investment fund holdings 1,815
1,637
Direct holdings in UK equities 51
53
CCLA Church of England Deposit Fund 486
488
Total assets held as custodian trustee 8,077
7,198

Page | 47

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GUILDFORD DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

25. PRIOR YEAR COMPARATIVE SOFA

Unrestricted funds
Restricted
Endowment
Total
General
Designated
Funds
Funds
2020
£'000
£'000
£'000
£'000
£'000
Income and endowments from
Donations
Parishes 11,087
-
-
-
11,087
Archbishops’ Council 28
363
615
-
1,006
Other 118
105
43
-
266
11,233
468
658
-
12,359
Charitable activities 488
-
175
-
663
Other trading activities 512
-
60
-
572
Investments 171
-
156
194
521
Other 138
-
16
60
214
12,542
468
1,065
254
14,329
Expenditure on:
Raising funds (415)
(12)
(22)
(31)
(480)
Charitable activities (11,772)
(80)
(1,077)
(142)
(13,071)
(12,187)
(92)
(1,099)
(173)
(13,551)
Net income before investment
gains		 355
376
(34)
81
778
Net gains on investments -
-
44
1,196
1,240
Net income 355
376
10
1,277
2,018
Transfers between funds (420)
74
166
180
-
Net income after transfers (65)
450
176
1,457
2,018
Other recognised gains/(losses)
Gains on revaluation of fixed
assets		 -
-
-
10,080
10,080
Actuarial (losses)/gains on
pension schemes		 -
-
-
(2)
(2)
Net movement in funds (65)
450
176
11,535
12,096
Total funds brought forward 1,722
1,864
1,541
148,572
153,699
Total funds carried forward 1,657
2,314
1,717
160,107
165,795

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