THE CHURCH OF ENGLAND DIOCESE OF DURHAM DURHAM DIOCESAN BOARD OF FINANCE ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 Com Chari an Number. 00192018 Number.. 248287 Durham Diocesan Board of Finance IA company limited by guarantee} Contenis Page Reference and administrative delails Trustees, rep( 3-21 Trustees, ￿spOnSIbl1rtles statement 22 Indepermjent audrtorfs report to the trustees of Durham Di{￿n Board of Finance 23-26 statement of financial activities 27 Income aml expenditure account 28 Balance sheet 29 Slalemenl of cash flow5 30 Notes ID the financial statements 31-65 Durham Diocesan Board of Finance IA Company limited by guarantee) Reference and administrattve details Year ended 31 December 2025 Ex officio Members of the Board The Bishop of Jarrow- Right Reverend SE Clark (Chairl The Dean of Durham - Very Reverend Dr PJJ Plyming The Archdeacon ofAuckland- Venerable RL Simpson The Archdeacon of Durham- Venerable EM Wlkinson The Archdeacon ol Sunderland- Venerable RG Coopei luntil 25 January 20251., -venerable KJ Bagnall {from 29 Seplernber 20251 The Chair of the House of Laity- Canon FR Stenlake The Chair of the House of Clergy-Reverend PA Amold The Chair of the Finance Group- Canon ML Vaughan (Vice-chairl Elected Members of the Board Reverend Canon KJ Bagnall {unlil 29 September 20251 Mrs A Blackbum Mr J Hall Canon Dr JH Harrison Mr PW HobL>5 Mrs UR Hicks Reverend BT Huish Mrs LM Jordan Ifrom 18 December 2025) Reverend MJ Levinsohn Reverend DM Lindley (from 18 December 20251 Mr SL Pickering Canon FA R￿erS Canon NR Wydey-Birch Durham Diocesan Board of Finance IA eornpany limited by guarantee) Referen¢e and administrative details (continued) Year ended 31 December 2025 Secretary to the Board Canon JJG Morgan Dlocesan Chancellor The Worshipful A Iles 56 North Bondgate BishopAuckland DL147PG Diocesan Registrar Mr P Vlfills McGarry and Co 53 Coniscliffe Road Darlinglon Co Durham DL3 7EH Independent Auditor UNW LLP Chartered Accountants Citygate St James, Boulevard Newcasue LJPDn Tyne NE14JE Glebe Property Agent5 Savills Helix The Lumen Sl James. Boulevard Newcastle upon Tyne NE4 5BZ Registered Office CLJlhbert House Slonebridge Durham DH13RY Telephone.. Web51te". Email.. 01388 604515 vA¥w.durham.a lican. enquiries@durham.anglican.org Company registration number 00192018 Registered charity number 248287 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Trustees, report (conts"nued) Year ended 31 December 2025 The trustees of the Durham Diocesan Board of Finance {Ihe DDBF'I, who are the members of the company and are directors for the purposes of company law, present their report together wth the audited financial slalemenls, for the year ended 31 December 2025. The trustees have prepared this Tnjstees. Annual Report in accordarte the current Charities SORP IFRS 1021, applicable for the year ende¢J 31 December 2025_ Ob"ectives ofthe DDBF The DDBF exists to manage the financial affairs and hold legal tille to the assets of the Diocese of DLJrham. enabling the mission and ministry of the Church of England across the Di0￿Se. It was incorporated on 21 August 1923 as a charitable company limtted by fflembership guarantees INO. 001920181 and is registered with the Charity Commission (No. 248287). Each member of DDBF has a personal liability limited to £1 under thwr guarantee as company members in the event of its being wound up. The objectives of the DDBF as sel out rn the Memorandum and Arttcles of Association are lo hold real and personal propety for the purposes connected with the Church of Engand in the Dio¢ese of Durham. The Board is the financial adviser and executh.ve of Ehe Diocesan Synod". rt is responsible for the collection, custody, disbursement and account of the Synod's funds. and the employment of all p￿SOnS in receipt of $8laries paid th'rectly from those fijnds. The DDBF has delegated responsibility for the daY-l￿daY management of rhe company to the Diocesan Secretary. The Archdeacon of Durham and Head of Programme DelNery foi Diocesan Transforrnation lead the staff team in supporting the Diocesan Bishop lo develop the mission of the Church of England in the Diocese of Dutham. The Diocese of Durham also beneffts from the services offered on a voluntary basis by a large number of mernbers and supporters of the Church of England. These volunteers gThfe of Iheir lime and expertise in many ways. including membership of the boards and committees needed lo provide effective governan￿ and ensure effecbve operatr.on of the Diocese. The Board would like to place on record ils giatrtude and thank5 fL¥ all the support il has received from both staff and volunteers over Ihe past year. The Board recognises the continuing challenges faang Clergy, parishes and would like to thank all of those who have supported this work. Strale 1¢ Aims and Ob-ectives The DI0￿Se of Durham has adopted a Visit￿ lo i*". The Church of England from the Tyne to the Tees and the Dales to the Sea. blassing our communities in JesLES' name for the transfomiation of us all. Following the Waymark conference in late 2019, the DI0￿Se has developed a rnission strategy for 2021-2026, approved at Diocesan Synod in January 2021. This focusses on four priorities. Energising Growth". Engaging with Children. Young PeO￿e and 18-255-, Challenging Poverty-, and Caring for God's Creation. Durham Diocesan Board of Finance IA cornpany Ilmited by guarantee) Trustees, report (continued) Year ended 31 December 2025 The DDBF sUPPOrts delivery of this strategy through stewardship of financial resources, investment in people and buildings, and oversight of d￿ceSan programmes and partnerships, including the programme of Diocesan Transformation which supports missional wotk wthin our parishes in line wrth these priorities. Achievements and erformance eralional Review Trustees reeognise the importance of demonstratsng nol only the activities undertaken during the year. but also Ihe difference those acbvtties make. Trustees receive regular perforrnance reports covering financial p0511ion, safeguarding compliance. programme delivery and key risks. These reports are reviewed by the Bishop's Council and its sub-commrttees, including the Audil and Risk Committee, and inform strategic and budgeiary decisions. Effectiveness is assessed through a combinalK>n ofr. QLJanlilalive indicators such as participation levels, vocational nurnbers, safeguarding Complian￿ data, school inspection outcomes and financial perfomiance against b￿dget.. Qualitative feedback from parishes. schools, project leads anrl beneficiaries". and Regular reporting lo Ihe Bishop's Counul. Audit and Risk Commrttee and other govemance bodies. Clergy. lay leaders and church members pLgy a central part in the life of churches aThJ carry oul important roles in our Gommunilies. The faithful Christian witness of our churches led to 10A growth in SLJnday attendance in 2024. The Diocese of Durham has continued to work lo see Missio￿ disciples INing the way of JesU5. In Febnjary 2024. the Right Reverend PR Butjer rth.red from his role as DI￿￿n Bishop, and the dIS￿MMent of the next Bishop of Durham commenced. The Vacancy-in-see Committee. chaired by the Acting Bishop of Durharn, met lo prepare the Diocesan Statement of Need. to arrange consullalion with stakeholders from across the diocese, and to elect six diocesan members of the Crown Nominations Commission for Durham ICNCI.The CNC norninated a candidate in November 2024. however in February 2025 il was announced that the nominee had wrfchdrawn from the process Therefore, in 2025 the CNC reconvened lo nominate a new candidate in December 2025. and the Venerable RL Simpson. AJchdeacon of Auckland. was announced as the norninee to be the next Bishop of Durham by the Prime Minister s office in FebrLJary 2026. He is expected to Come chair of the DDBF upon lakj.ng office after his confirmabon ofelection later in the year. In January 2026 was announced thal the Bishop of Jarrow 2nd Acting Bishop of Durham, the Right Reverend SE Clark, had been nominated to become thè next Bishop of Ety. Following her confirmath.on of election, this will lead lo a vacancy in the See of Jartow. The vacancy audit process is used to prepare parishes for the appo¢ntment of the next minister. and 20 (2024.. 29) panshes completed the prc￿S in 2025. The full-time equivalent of nine clergy were appointed lo slipendiary planned posis in the diocese in 2025. Al the year end 81 full-b.tne equivalent clergy were setving alongside non-stipendiary ministers and lay colleagues. Durham Diocesan Board ofEducat￿n DDBE The work of the DDBE cover5 a wide range of areas.. representing diocese on a variety of committees and statutory bodies.. liaising wth local authoriiy and other officers". supporting schools by providing help and in- service training on a wide range of issues including religious education and school worship, supporting and training governors. legal. land management and govemance. The DDBE airns to facilitate the working together of govemois, teachers, parents. church and other partners to ensure that the quality of education offered to the children in our church schools is the best it can be_ The DDBE seeks to.. promote education wthin the farth and practi￿ of the Church of England., Durham Diocesan Board of Finance IA cornpany limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 promote religious educalron and colleciive worship in schools.. promote or assist in the promotion of church schools and athise the govemors and trustees of church educational endowments and any other body or person concÉmed on any matter affecting Church schools., promote co-operation wth bodies or persons concemed in any respect with education in the diocèse., anLI support parishes in all aspecls of their work with children and young people. The DDBE meets temily and receives updates from the Diredor of EdwAtion. who leads the Joint Education Team. which operates on behalf of both Durham and Newcaslle Di0￿$8n Boards of Education. The members of the DDBE bring a wide skill sel including expertise from educatson, business 8nLI finance. The DDBE has worked bwlh all 57 church schools in the diocese thr(yJghout the yeai. These consist of 51 prirHary schools, one junior school and five secondary schools. one of which has a sixth form. The landscape has continued to shift wth more schools becoming academies and pining Church of England or Mixed Multi- Acaderny Trusts (MATS). There are seven Voluntary Aided Schools and 14 Voluntary Controlled Schools within Ihe diocese, and 36 schcrt)Is now in academy trusts. Of those that have academised. one remains as Single Academy Trust and another as a single school wrthin an 'empty MAT.. Inspection outcomes are strong auos5 the dvjcese for both Otsted and SIAMS (Statutory Inspection of Anglican and Methodist Schwlsl inspections. At the end of 2025. 96 5% of Church schools were outstanding or good according to Ofsted 100% of the schools inspected under the new SIAMS framework. which commenced in September 2023. have attained a 'Judgement 1, Ithe highesl levell and are livtng up lo their foundation as a church schcx)l. Professional developrnent COU15es are made available trMJth online and in person, and cover a wide range of subjects and topics, including lemily support for chairs of govemoTS and ex-officio governors. and termly training for new foundation governors. In addition. the Summer conference IRE.. Inspiring CLJriosityl. had over 150 delegates in attendance from trx)th church and community schcK>ls. as well as both internal and external speakers. This year. the leam has ftrrther supported Sch￿15 and govemors wrth the SIAMS fratnework. including exploration of what spiritualTty means in each context and the Tole of governance wrthin this. Poverty Proofing, Courageous A￿v0￿CY, Christrdn Distinctiveness and Subl￿t leadership courses and preparation for the new OFSTED Inspeclion Framework have also been offered_ Uptake is strong for all aspects of continuous professional development {CPD) wlh many courses being ￿peated due lo demand. The team has also accessed CPD. including training on Mental Heatth and Well-Being, Safeguarding. Equality, Diversity and Inclusion. and SIAMS and Ofsled updates. The Director of Education attends Bishop-s Leadership Team, Diocesan Synod when requested and Bishop's Council, sharing the views of school leaders and pupils. as well as nabonal conferences focusing on SEND, Inclusion and partnership opportunities. Current challeroes for schcM)ls revolve around the increasing financial pressu￿$. falling pupil roles due to low birth rate. incieased challenges around inclusion with a decrease ITr funding and financial difficutties wthin Local Aulhorilies. poverty. recruilmenl and rttlenlion of staff, and improving attendance. path"cularfy for disadvantaged pupils. In addrtion, the Director of Education is a membei of the diocese's Nel Zero Working Group which is enabling all voluntary aided schools to move towards being carbon neutral by 2030. Linked to this. there is ongoing work to suppot governors with property issues and with the legal processes involved in ar2demisation of schools. En in with child￿￿. You Peo e and 1&2&* Educalional chaplaincy has continued lo develop Ihiough strong national engagement. strategic leadership, and lo￿1 delivery. The diocese is an active partner of the Growng F2rth Foundation, with growing involvement in national netwoiks, research, and leadership development, including parts"cipation in the Strategic Leaders Prograrnme from January 2026. Slrategic oversighl is provided thrO￿h the Education Chaplaincy Enabler, who o)ntribules lo national ¢haplain¢y leadership and shapes diocesan priorities around vocation. formation. and training. Locally. chaplaincy provision is eslabtishe(l or developing across a number of secondary and primary settings. with notable growth al Whitbum Church of England Academy and emerging provision al St Hild's. Hartlepool. This work is supported by strengthened school-church partnerships. Flourish projects. diocesan Durham Diocesan Board of Finance IA company limited by guarnnteel Trustees, report (continued) Year ended 31 December 2025 events such as pilgrimages and cathedral services. and the re-establishrnent of a diocesan education chaplaincy network. Together, these initiatives are embedding the Growng Faith model and strengthening sustaillable chaplaincy across the diocese. Children's ministry capacrty has been strengthened through the appointment of a Mission Enabler- Children in November 2024. alongside a diocesan-wide listening exercise idenl]fied signifi¢anl needs around connection. resourcing and training for children's ministry workers and volunteers, particularfy in relation lo additional needs. In response, l(Trl childien's ministry nefvlorks are being established lo support shared arning and fellowship, with the first launching in Stockton Deanery and further nehyorks planned for 2026, 8longside the fDmialion of a Diocese of Durham Children's Ministry Advisory Group to support more accessible and inclusive practice. Increased di￿esan collaboration has also been demonslrated through the 2025 Year 6 Leavers. Service, which incorporated improvements in a¢¢essibQily. interactivity and transition support, including leadership opportunities for older young people and signwsling lo ongoing youth provision. Alongside this. the Mission Enabler- Children has contributed lo work1￿ce development through academic leadership al Cranmer Hall, supported churches in developing children's ministry vision and slralegy. and represented children arNJ young people on the Durham Safeguarding Advisory Panel IDSAPI during a period of staff absence. The appointment of the Young Adult Mission Enabler in March 2025 has strengthened diocesan engagement with young adults through research-led and pilot-based approaches. Befvleen March and June. a slralegi¢ partnership was established with King's College London's Gen Z Rde Models Project tc* explore young adult5. perceptions of faith, spirituality and insbtutional religion. culminat'ng in a research summit to be host￿ in the Dia￿se of Durham in May 2026_ This collatroration has raised the profile of the Growing Younger priority nationally and locally. including through media engagement. and has infomed diocesan understanding of emerging patterns, wth a survey of Jatrow Deanery indi￿tIng that 80°/o of churches are observing signs of newed spirrtual interest among young aduf(s. Building on this insight, a young adult pilot project is being launched in Jarrow and Hebbum. focused on café-based Bible study and community for young adult5 experiencing isolation, with plans lo connecl with NHS social prescribing pathways. Further pilot projects are planned for 2026. The Growing Younger programme continues to build diocesan capacity for youth ministry through training, even15 and targeted support. Launchpad. a clergy training programme designed to equip incumbents to initiate youth ministry within their congregations. has completed rts first Cohort. wlh ongoing lermly learning community sessions now established. This has resulted in the ¢reab'on of three new youth groups, the slrenglhening of three previously fragile youth groups. and the development of fvrther projects planned for the Coming year. Pulse, a diocesan youth event for young people from Year 6 to age 18, focuse5 on encounter with Christ and peer connection for those exploring faith". the first full event was held at All Saints.. Newton Hall. following an initial listening event. 2nd engaged approximately So partiapants. i￿l￿ding young people. leaders and volunleers. Alongside Ihese inilialives. tailored coaching. support and consultsncy have been prtsvided lo Clergy and lay leaders across al least 13 parishes. supporting both the establishment of new youth mini51ry and the development of existy'ng KKOViSiOn_ Conversations are ongoing wth clergy arKt C￿jrch officers in locats.o￿ ithntified as haviThJ potential lo develop Youth Hubs. Alongside this. work is underway lo arti¢ulate a clearer ￿$[on for the progression of young people. This comprises supporting he3￿hY transition from ¢hildren s ministry into youth engagement. and from youth into young adulthood. The Growing Younger team is also acbvety engaging wlh parishes lo strengthen connections between them. fostering a collaiMJratsve appioach lo youth ministy, particularly where young people naturally move across parish boundaries. Durham Diocesan Board of Finance IA cornpany limited by guarantee) Trustees, report Icontinued) Year ended 31 December 2025 Growin Chu￿￿eS The Growing Churehes team has Ih¥ee key areas of work.. Maturity- intentional discipleship Mission- evangelisb"c confidence MulliplicatK)n- raising leaders and establishing NWCS In 2024, the deusion wa5 made lo establish a new Growing Churches team lo better achieve the goal of seeing growth in each of these three key areas. This has been a natural development from the work of the Cultivate tearn. previously focussed on the Diocesan vision of establishing 100 new worshipping communities by 2030. 11 was recognised that to widen the errfJagemenl of churches, there is a need to focus on preparalign at an earlier stage ol missional development. by supporting churches with the foundational ingredients of mission and discipleship lo grow in depth and reach in order that they may then Multip￿ in number. A learning communrty piltst is underway wlh Darfington Deanery. around 30 people from rnosl Churches represented. This encompasses all three aspects of the Growng Churches process Maturity (Discipleshipl, Mission (Evangelism), and Multiplication (establishing New Worshipping Communiliesl. This pilot process is a series of learning comrnunities, huddles and coaching which. over an 18-monlh period. supports churches in embedding deep cultural Change. Growing Durham DI0￿Se. Our Resourcing Churches are approathing the end of the pericxj through which they are funded by the National Church. Thete have b&n many positive outcomes in terms of congregational growth and diversity. as well as many new ministries to young people, vulnerable adLJlls and lo rnore economically deprived communilies. The nexi phase of engagement wrth these churches ¥MII include robust tAanling plans. as well as discerning Ihe pla￿ of Resourc¢ng Churche5 in the Tmder church ecology of the diocese, in particular wth the Gro￿ng Younger agenda. alongside an evaluation of the project. Growing Hope." Sl Paul's Slocklon and House of Hope. Thomky have received further funding to support their continued growEh over the next three years. Having reached the end of ils ftjnded peri¢Jl. the Pennywell project, Hope4AII. will continue to be funded by the DBF whilst it explores future pos51bilrties during 2026. Hope4AII Continues lo expand their offer of social action projects to the local community, with a number stsrting to explore faith. There are posib've signs from a number of projecis.. in Hartlepool the recruitment of a new Mission Enabler Is giving fresh energy and vision to the project and a revitalisation project is planned for Sl Columba's church., Wine Church, Wynyard have adapted their missK)n plan lo develop disapleship practices and lay adership roles. which is already being fruitful. Transforming Growth.. All of the churches involved in Ihe coaching and resourcing piovided Ihiough this project have now established New Worshipping Communities.. some are now well established and a￿ now in a process of refining and reworking their mFssion plans lo engage more widely and deeply with their communities.. Sl Alban's, Wndy Nook are now actively engaged in the revitalisation of St Ninian's in Low Fell", and Sl Andrew's in Haughton-le-skeme continues to thrive, regular]y attracting 50-60 atteThJees. The Foyndalions ¢ourse had been developed in conjunction with Cranrnei Hall, wlh around 20-25 attendees. to provide practical and Iheologi¢al training for lay leaders identified as ef(her being engaged wlh. or planning towards. establishing new worshipping communilies. 11 is hoped thai this dis￿mMent, training and coaching will enable us lo develop lay planters wlh missional ¢onfidence_ Growin Leadershi Leadership in ils many fomis is essentsal, and we are delighted to have had real success in developing both lay and ordained vocations. By the end of the year. we had 16 Durham sponsored candidates in training for ordained ministry (2024." 20) The diocese, having recenlly been able to export candidate5. ha5 now reverted back to its historic pattem of importing candidates for stipendiary ministy. though our se￿-SUpportIng numbers rernain strong. Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 The numbers in tiaining for Licensed Lay Ministy have remained strong. Al the end of the year the￿ were 20 readers in trailling (2024.. 22). Numbers of vocations lo lay pasttNal rnini5tsy have grown, with three in training 12024.. two). There are seven (2024.. nine) candidates in training for aLrthorised lay ministry of the word. The aulhorised lay children's leader pathway remains popular. and there are fve people in training (2024.'12). Most of the authorised and licensed lay ministries (reader. pasloral ministry, chaplaincy, and Tninislry of the word) are being trained through Lindisfame Cdlege ol Theology. Lay childien's leaders are trained through courses provided by the DDBF. Challen Povert With financial support from Lord Crewe's Charity, the diocese has worked wlh Communities Together Durham ICTDI to help churches challenge povety. 53% of parishes in Durham diocese are in the 20 % most deprived parishes nationally. This priority has three areas off￿u$.. Working together to address child and ycKrth povety CTD supported 20 holiday clubs (2024.. 14) wth activities. based around fo(MJ provision, reaching 500 children. 5Q% of these clubs were in the 10% most depnveil parishes of the diocese. In the Penn￿11 estate in Sunderfand {5* centile index of muttiple deprivation). we have been working alongside the local church lo develop a project Called 'youth voice.. YoLrth voice works wlh young people lo create a platform to describe their experierce of growng up in Pennywell and find appropriate plafforms to share this with others. After initial support and relationship building. the young people are nc)w eiealing a cafe wlh the support of their local church. The young people involved described the impa¢t of the project on them as giving 'purpose,- 'improving mental health,- reducing "so¢ial isolation," increasing personal motivation" and increasing "sknlls and employabilrty.. A Personal. Social, Health and Economic educakn.on IPSHEI resource on the "Negative Narrative, was developed to help clergy and congreg*ions engage schools with issues of poverty. This supports Chur¢h of England schools to fulffil the requirement under the Statul(ry Inspection of Anglican and Methodist Schools ISIAMSI lo demonstrate how 'the ￿hOol'S theologically rooted Christian vision creates an active culture of justice and responsibility. Responding lo isolation. particularty among the elderty Churches across the diocese have continued lo engage wth wami Sp8￿$ and places of welcome. Holy Trinity MtJrton18th cenlile index of multiple deprivation) entered a partnership with CTD to relaunch 'Heart on the Terrace., a shop front community space offering food provision. signposting and groups lo combat loneliness and isolation. sin￿ re-launch in Ociober. an average of 100 people a week have accessed the project. Work with County Durham Food Partnership has begun on a project called 'Beyond Foodbanks., We identified the most common engagement wth the Challenging Poverty priority as collecting for the I￿21 foodbank. While most churche5 in Durt)am Diocese engage with food insecurity. few have the resources lo go furthei and see systernic change. By working with partner organisalions we hope to offer churches altemative and rnore effective ways to tackle fo(Trd insecurity. restoring dignity lo those who benefit from the service as well as rneeling their malerial needs. A key part of this inib"ative is encouraging churches lo bring people together for food, such as community meals. Reaching trut and respcffiding to the needs and gifts of asylum seekers aTh1 refvgees Churches in all seven local authortb.es covered by the diocese have been involved in supporting refugees and asylum seekers located in their area_ We continue to work lo build links between these different drop ins alongside other agencies. Durham Diocesan Board of Finance IA company limlted by guarantee Trustees, report (continued} Year ended 31 December 2025 St Andrew's Stanley 16° Centile index of mulliple deprivalionl engages the community through a weekly warm space, in partnership wth Durham County Council's refugee and asylum seeker provision (delivered separately by CTDI. In 2025 there were 365 visits to the wami space. More details of activities and their impact can be found on the CTD website at htt s."Ilcommunitiest etherdurham.or Cann for Gods c￿allon 11 has now been five years since the adoplion of Caring for God's c￿alian as a dio¢esan priority. In addition to a Diocesan Environmental Officer IDEOI. we also have a Creation Care Officer ICCOI worf(ing on this priority ongside a parish role. The di(Kese has actively encouraged churches lo parbcipate in the A Rocha award process. This recognises the efforts of churches in our diocese to undertake environmentally friendly actions. supporting the Diocesan commitment to Creation Care and efforts be4ng made towards net zero carbon. There has been a significant uptake in churches engaging with the Eco Church scheme. We now have 113 churches registered, induding 47 biorbze awards. 10 silver and 2 gold. The CCO has worked wlh churches on their Eco Church journeys and is enttjuraging new churches lo sign up ID the scheme. The CCO has also been prryjucing reSour￿S for the diocese and is beginning to set up a bioader Environmental Champions netsyork. Both the CCO and DEO have attended some deanery synods and chapter meetings this year lo promote the take-up of Eco Church. outline the net zero ¢arbon plans and encourage positive environmental action in parishes. The general synod 18rgel ol Nel Zefo 2030 remains an important focus for activities. The Nel Zero Wod(ing Group of represenlalives from across the di(Kese mel quarterly and continues lo be a useful plafform for ensuiing that progress is being made with the diccesan net zero action plan, as well as being a forum lo discuss updates from the national net 2ero team. An update on nel zero progress was presented to diocesan synod in November 2025. This showed 3 reducbon lo ow carbon footprint by 11 %. The DEO and the Buildsngs for Mission Secretary have worked wth the churches wilh the highest carbon emissions in the diocese to produce nel zefo action plans. Carbon ￿tprint data 15 obtained through the online parish returns using the Energy F¢)olprinl Tod IEFT). This yeai, 940h of churches responded to the EFT, which 15 2 great improvement from 62% in the prior year_ Workshops were held with chuiches within the top 20°h of carbon emissions lo help Iheir represenlalives consider how to lower their carbon footprint. The Buildings for Mission Secretsry ha5 continued to visit churches on requesl and advise them on low carbon healing options. Safe uardin In May 2025 the diocese underwent an independent safeguarding audit led by the INEQE safeguarding group. The auditors tested the sufficiency of safeguarding arrangements wthin Durham Diocesan Board of Finance IDDBFI and the Cathedral wth a particular focus on Ihe CofE's National SafegLtarding Standards. Over 400 documents were collated and analysed. 931 anonymous survey iesponses were received and 42 separate engagement sessions reaching 111 people took place_ The auditors found that the DDBF is taking a robust anLI proactive approach lo safeguarding. Many individuals reported feeling Confident in raising safeguarding concems Yrthoul lear of repri￿1. indicating a growng sense that safeguarding is be¢oming deepty embedded in practi￿. This positive trajeciory is further supported by the dedication of Parish Safeguarding Officers. the Diocesan Board of Finance's desire for continuous improvement. and the compassionate leadership from the Acting Diocesan Bishop. the Diocesan Safeguarding Officer. and the wider senior team. The audit identified that there is good training and support for Parish Safeguarding Officers. effective safer recruitment processes, good use of the Pansh Dashboard and active promotion of awareness-raising activities. Partnership working is good and enhanced by the Di0￿san Safeguarding Officerfs proactive engagement in Durham Diocesan Board of Finance IA Company limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 external safeguarding groups. FurtherTnore. the audrtors also identified evidence of good risk management and the sensible application of low Ihresholds. encouraging early reporting and engagernenl_ Safety Plar6 are effectively and proportionately applied, and Safeguarding Case Management Groups are effectivdy ulilised for complex cases. Vidim and survivor support is thoughtfvlly addressed, wth the auditors recognising evidence of the DSO advocating for and delivering trauma-informed processes and response5 to disdoswes. The di(tese has now published its action plan in response to the recommendations raised by INEQE. DDBF staff and collaooralive wothin In the interests of delivering the best support seM¢es possible for our diocese. we have contrnued to develop opportunities to work in collaboration WTth other Church of England bodies. These include the well-estsblished Joint Education Team, aspects of ministerial training and retreat house. The joint diocesan communications leam has developed a regional voice to promote the voice of the Church of England aligned geographically lo regional media organisations. We have also established links with Durham Cathedral and will work collaboratively with them. especialty as regards safeguarding. The diocese has joined with neighbouring dioceses to obtain naknonal ¢hur¢h fvnding for a nel zero fijndraising officer to support parishes. The number of staff employed by the DDBF was 50 (2024_' 47) posts. This includes (2024." two) d)aplains who are employed by the DDBF on behalf of the ￿ganiSatIOnS in wlich they serve. This also includes 23 (2024.. 18) posts which are grant lunded, and most of which a￿ fixed terni wth ienewal subject Its further funding being available. This approach enables the DDBF to fulfil a wicler range of provision than would be vssible through ils core stsff. whilst allowing unrestricted bjnds to be focus5ed on ministry. Improvements have been made to several diocesan core systems and processes in order to maximi5e efficiency and keep costs to a minimum. The Equality, Diversity & Inclusion Enabler CLyJrdinaled a team of advisers and advocates lo help drive the diocese forward in key areas induding.. Disabilty ministry", UKME.. Gypsy, Roma and Traveller Ministry". Women's advocacy.. LGBT+ advocacy., Deaf ministry.. Ra¢ial and Soaal Justice. Buildin s for MiSs￿n and Diocesan Adviso Commrtee DAC The diocese currenuy has 256 church buildings open for worship an(5 of these 247 are under faculty jurisdidon. The DAC Tllel 10 limes during 2025 and di$￿$Sed a total of 126 (2Q24." 149) proposals from 92 (2024.. 700) churches. Following discussion of the proposals by Ihe DAC a total Df 77 12024." 901 faculties were issued for work to church buildings and churchyard5. This induded 5 interim faculties that were Issued for urgent work including roof repairs and failed heating systems. The Archdea¢ons also issued a total of 95 (2024.'115) wrttten noti¢es lor work that can be carried out without a facully. During 2025 a lolal of 33 (2024.. 27) quinquennial inspections were conducted. During the year funding frtsm the Archbishop's Council was used to 5UPPOrt work on church buildings wrth Minor Repair & Improvement grant5 of £70.000 offered lo support projects with a total cosl of £0.5m. In addition. the mainder of the £60.000 QLJick Wns Grant was allocated lo churches lo support projects which reduce their carbon output. A further aui¢k Wns Grant of £100.000 has been confirmed lor distribution dLJring the next 10 Durham Diocesan Board of Finance IA company limlted by guarantee) Trustees, report (continued) Year ended 31 December 2025 triennium. The Church Btjilding Support Officer has 5UPPOrted 23 chtjrches to cary out Maintenan￿ and improvement work lo their buildings and much of this support has been focused on grant funding obtaining £1.2M of extemal fijnding. The Buildings lor Mission Secretary has visited 73 churches for initial consuliatlDns around building projects and the team have provided 12 training sessions for parishes on the subject of building maintenance. Lookin ahead In February 2024, we re￿iVed confirmation of the SecOr￿ phase ol a funding award from the National Church in support of our Diocesan Transformation programme. Coupled wrth the first phase award from 2023, this ovides up lo £11 m to support the Transformab"on programme up to 2028 al which point it is anticipated that ogress will be evaluated and a subsequent fvnding appliration will be submitted. This programrne has formed a key part of the basis of the Diocese's Statement of Need which was used by the CNG in the discernment of the next Bishop of Durham who w511 be entnjsted with leading the Transfomiation programme. During 2025, the inikn.al stages of delivery of the Tran5fomation Programme have taken place. This has included pilot work to ensure that each of the interventions is well understood and that appropriate support can be provided to ensure that these work well. This means that the team is now focussed upon four areas. each ith a Strategic Lead.. Growing Mission.. Growng Leadership.. Growing Churches., and Growing Younger. The DDBF'S missional programme governan￿ has also been aligned with the Diocesan priorib.es and Transformation pr￿rarnme. whilst ensuring that all our funded programmes are governed and held accountable in an appropriate way. The main areas of focus are.. Missional Discipleship, Transfomiing Prayer, Church Planting and Revitalisation". Piloting Missional Hubs", Developing Missional Youth Chaplaincy-, Resources for Local Change", and Support for Culture Change. We have begun lo see 'fruit- In some of our new worshipping communrties. Some are already beGoming significant conlribulors within their deaneries and we wll continue to Implement new aspects of the work facilitated by the Transformation Planning Group. which reports to our Bishop s Leadership Team. This work 11 develop over the next five years and includes ambits'ons to". plant or revitalise 100 churches., establish and resource thurch-based missional chaplaincy teams to work wlh the colleges of further education and with our Church of England secondary schods., support cleigy to focus more fully on mission and discip￿eShip'. align appointsnents and clergyllay leader training more explicrtly lo the Diocesan vision.. and support new collaborative initiatives in pla￿ where developing mission in isolation would not otherwise be possible. Durham Diocesan Board of Finance IA company limited by guarantee) Trustees. report (continued) Year ended 31 December 2025 Financial review Financial conditions continue to remain challenging for parishes and the DDBF. vAth no over811 recovery in parish share observed since the pandefflic. Despite many parishes using reserves to ftjnd parish share, the cash value of the DD8F's parish share receipts remained al r4_2m 12024.- £4. 2m). being 97% (2024.. 95%) of the amount originally pledged by parishes. This is £2.5rn (2024.. £2.7m) below the amwnl required to meet the full cost of diocesan ministry including housing and pension costs during Ihe year. The DDBF agreed a budgeted operating deficit of £0.47m for 2025 (2024.. £0.6m), after a transfer of £1.32m 12024.. £1.8m) from the Stipends Capital Fund under the total relum a¢counting policy. The nel movement in funds was a deficit of £1.8m (2024.. sU￿lUS of £0. 9mJ. which included a £1.4m unrealised loss on listed investments (2024.. gain £0.8m). a £0.2m loss on agriCu￿u[al land 12024.. gain £0.3m), and a gain 01 £0.5m 12024.. £0.5m) on disposal of propety. Excluding these adiuslments which are outside of the DDBF'S operational budget, there was an underfying operab.ng defi¢ri of £0.8m (2024. £0. Tm). After the Iransfer of fijnding for the total return on investment from the endowment fund to unrestricted funds of £1.3m (2024.. £1.8mJ this results in an Un￿strICted operating surplus of £0.4m (2024.. £1. lm). Grant funding c>f £0.6m (2024.. £1.2mJ was recesved during the year and is yel lo be disbursed. This is pnJnarily due lo ttie receipt of fLJnding in advance from the National Chuich. Income (excluding income received on the sale of propetyl was £12.0￿ (2024." £12.4m). including.. Contributions from parishes-"Parish Share. of £4.2m 12024.. £4.2m), £82k le55 than budget. The di0￿se is grateful to parishes for their contribubons lo parish share during a challenging year". £2.Om (2024.. £2.Om) of Lower Income Communities FurKJing, £1.3m (2024.. £1.gm) of Slralegi¢ Development Funding grants. £0.3m (2024 £0.4m) of Strategic Ministry funding lo support the cost of training Curales and first irKumbenls and other grants from Archbishops, Council.. £0.7m {2024.' £0.6m) of Property I￿ome.. £0.3m (2024.. £0.3m) from Lord Crewe's Charty to fund povety alleviation. counselling and other projects. Contributions were also iece£ved from donors such a5 Benefact Trust. St Hild Bede Trust. Marshalls Charity 2nd Mercers Trust. The largest area of eXpenditt[￿ was on supporting parish ministry. comprising the slipend5, pension and housing costs of clergy-. Stipend and salary related costs were £6.8m (2024.. £T.2ffl) Costs of providing dergy housing were £2.Om (2024.. £2.Im). Nel assets at Ihe balan￿ sheet dale were £74.8m (2024." £75. 6mJ. The DDBF'S investments are held across several funds managed t>y CCLA. The DDBF administers several resiricted and endowment funds which together comprise 92°/0 (2024_" 92%J of the asset5. Investmenl erfomian The lolal value of investments (excluding short-temi cash depostsl al the balance sheet dale was £35.5m 12024.. £37.OmJ. During the year. the nel movement in value was a loss of £1.5rn (2024.. gain of £0.2m) being a 4Yo reduction in value. The trustees noted ctsn¢em on Ihe performance ol the Investment Manager and ale taking appropriate aclKJn. 12 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Trustees, report Icontinuedl Year ended 31 December 2025 The glebe land held by the DDBF has been ievalued dowfflwards by £0.2m (2024.. £0.3m) to reflect the market value al the balance sheet date. The Board is custodian trustee for trust investment assets wlh a market value of £12.8m (2024." £13.6m). Detailed certificates of holdings are provided lo parishes and managing trustees of the respective charities annually. The Board also acts as custcxlian trustee for ￿rtain Parochial Church Council IPCCI property. Each PCC is an independent chaity and these assets are not recognised the balance sheet of the DDBF. Granl-makin beneficia -selection Grants are made lo the National Church in accordance wth an agreed fomiula, to cover a proportion of its central costs and the cost of training for ministry. The total paid lo the National Church was £0.6m (2024.. £Q. 5mJ. Grants are paid lo PCCS and to other charilaile projects which appeal to the Board lo support the furtherance of DOBF'S objectives. These are set oul in note 17. Investrnenl 01￿leS The Memorandum and Articles of Association of Ihe charity permit wide powers of investment. DDBF'S investment policies are based on two key poli¢ies- Ethical investment This includes ensuring that investments are held in companies which have high standards of corporate governance and act in a ￿SponSible way towards stakeholders. Long-term responsibilities The directors are aware of their long-temi responsibil￿eS in respect of endowed funds and as a Tesult follow a prudent approach to inveslment decisions. These policies are currently achievety by holding all funds with CCLA Investments Limited in London, which invests in line with the Church of England's EthicAI Inveslment Adv1sory Group's investment policies and in accordance with the motion passed by synod warding divestment from fossil fuels. Investrnenl policy for long-lem) funds is airned primarily al generating a sustainable income with due regaid lo the need for Ihe preservation of caprtal value and the possible need to realise investments lo meet operational needs. The glebe inveslments are held foi the purpose of raising income to achieve the maximum conlribution possible to clergy stipends on an on-going basis. Unrestricted and restricted fvnd investments are invested to balance income. liquidity. and the Maintenan￿ of capitsl. Funds which may be needed for working Capital in the short terrn are held as deposits with CCLA Investments and with deposit taking banks through an account managed through Ihe Flagstone cash management platform. Total rettjrns In 2025 an allo¢alion of £1.7m {2024.' £0.9ffl) has been made to the tnjst for investment during the year lo ensure that the capital value of the trust for investment is maintsined over Iirne. The trustees have rHade an allocation of £1.3m (2024." £1.8m) from unapplied total return during the year towards the unrestricted running costs of the di0￿e_ This amount is shown as a transfer between funds within the slalement of financial activities. Other realised and unrealised gains and losses on the disposal and revaluation5 of inveslwenls and property amounted lo a loss of £0.9tll (2024." £0.9mJ in the year which has been credited to the unapplied total return Carried forward as at 31 December 2025_ 13 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report {continued) Year ended 31 December 2025 Reserves The DDBF has agreed a ￿serveS policy to maintain available free reserves within a range of three lo six months, average unrestricted expenditure in the lomi of unrestn.cted lincluding designaledl net current assets plus fixed asset investments to the extent that these can be exchanged for CAsh at less than one month's notice. The Board estimated that for 2025 this would equate to a ran￿ between £2 sm and £5.Om. Al the balance sheet date. the ODBF'S unrestricted linduding designaledl aval￿ble free reserves were £4.2m (2024.. £4.OfftJ Future ros ects The trustees and d10￿$3rn synod have approved a budget for 2026. which after allowing for further planned inveslrnenl from restricted reserves, and after applying a transfer of £0.9m under the total return accounting policy from the Stipends Capital Fund, leaves a nel operatsng deficit ol £0.8m. Parish share pledges for 2026 of £4.3m {2025.' £4.3mJ have been receNed. which is unchanged compared lo 2025 despite CPIH (Consumer Prices Index including ovmer 0￿upiers, housing costs) inflation of 3.6°k lo December 2025. This increases financial pressures and has required a recognition that not all posts idenlified in deanery plans can be filled whilst maintaining a balanced L￿dget. However. posts conts.nue lo be adverb'sed twilhslandiro the ongoing challenges in recrutb"ng. Against this challenging financial background, the DDBF continues to deliver and develop the mission and ministry of the church, and during 2026 will continue to fund ministry al parish level across the diocese. The lack of recovery in parish finances plus the inability of pledge income to keep pace with Inflation means that prospeds of a medium to long term recovery to pre-cowd levels conb"nue5 to remain highly uncertain. The diocese continue5 10 try lo address the decline in tl* value of parish inc0￿e and the consequent effect upon share. SUPPDrting parishes in vacanw through the vacancy audit process, and offering support with sl&wardship through the generous giving team and the fvnding of a ￿70t post to help with parish a¢countS 2nd adminislralion in a deanery. communickn.on wth parishes is ong￿ng. to ascertain the likely future levels of parish reserves and parish share. The National Church has made funding available to help dioceses adjust to the incre8sed ￿Ve1 of stipend agreed by General Synod in 2025. The abolition of apportionment, introduction of the Ministry Training Fund and other Changes arising from the Diocesan Finances Review are expected to take effect in 2026 and will have 8 nel positive effect on the diO￿aft finances in the short-lerm. However. there remains uncertainty around the future of diocesan funding On￿ the b"me-limited elements of this package expire_ The diocese will continue lo benefit from the National Chuich'5 Strategic Development Fund through the Growing Durham Diocese. Growing Hope and Transfomiing Giowth projects wlh Growing Durham Dio¢ese reaching the end of ils funded period in 2026 and proceeding to evaluation. The Strategic Mission and Ministry Inveslrnenl Board has committed to funding for the first tsvo phases of the 'Called to Fruirfulness, Transformation programme. and a range of other funding streams emerging from the lalesl triennium funding review will be explored In 2026. The DDBF intends to increase support for clergy and lay leaders developing their minislry and discipleship and to encourage and nurture those exploring a vocation for public ministry in the Church of England with new training pathways under (Jevelopment in conjundion wth our lo¢al Theological Educational Institutions. Goin concern The Iruslees have Considered the availability of reserves and cash upon the going concern basis of preparation of these financial slalements. Although un￿rtaInty remains. particulady over the recovery in parish income and the real-terms reduction in the value of parish share. il is anticipated that reserves will remain within the level 14 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 set out in Il* reserves policy. Having reviewed foreeasls for the forthcoming twelve months that are subject to a range of reasonably possible downside scenarios. the trustees are comfortable that with the current levels of cash and short-term deposits are SLJfficienl to allow the DDBF to continue lo operate as a going concem for the foreseeable future. though there are several challenges ahead as outlined above the diocese is confident that these can be managed and is enthusiastic aboui the changes that wll take place over the next few years facililaled by the transfom*K>n process aided by funding from the National Church. Risk mana ernent The trustees confirm that the major risks lo which DDBF is expos&J have reviewed and Ihat mitigating actions have b*n PLrt in place to manage those risks. The Board maintains a risk register which is reviewed regularty by the Audit and Risk Comrnittee, and this register has been updated during the year. with input from all DDBF fijnctions. During 2025 the most significant risks related to the operations of the DDBF have been.. Church attendance and long-temi financial sustainability", Safeguarding.. and Capacity of senior leadership team during a period of exiended vacancy in see. Church attendance and IDn -lerm financial sustainabil" These fv40 risks are intrinsically linked and relate to the ability of Parochial Church Councils lo maintain their own operations. In the face of national Irends around declining congregation nuThbers thi5 is a significant risk to the DDBF both from the adverse effect il has on delivery of mission but also frorn the knock-on effect il has on the ability to offer share to the DDBF which ale financed through giwng and fvnd-raising by church members, when PCCS are a150 facing increases in Costs Alongside inflalton. thi% has exacerbated the extent tD which the level of conlribution from parishes is insufficient to fflaintsin the cutrenl cost base of the DDBF. The parish share system conty'nues to provide a 'Guided Pledge. to each parish. lo gwe an indication of the level ol pledge which would be reqLJired to ensure the DDBF could break even. This Guided pledge system was designed lo mib'gate the decline in parish share Ihat has been seen in real lerrn5 over the pre￿dIng decade. Parish share pledges have continued lo decline from £4.5m in 2021 to £4.2m in 2025. Certain exiemal factors affect the Board's abilty lo meet ils finawal obligations, in particular the level of inflation. which leads lo in¢￿aseS in sbpends. salaries and building rnainlenance cost5. Despite some sbpendiary and stsff posts remaining vacant. there was a continuing operational deficit although financial restraint and challenges in recruilmenl for some posts led lo this being within Ihe budgeted delicil. Recruitrnenl has taken place, following application of a vacancy audfi process in the case of each parish vacancy. However. the truslees are aware that lengihy vacancies can place strain on clergy and staff. and efforts are being made to increase the rate of recruitment. The difficulty of recruilmenl is not limited to OLJr diocese.. it is a challenge faced across much of the country. We are taking steps to support the welfare of our dergy who are having lo operate in these drfficult circumstances by providing advice and counselling as and when ne￿Ssary. Safe uardin 11 is of key importance lo the DDBF lo ensu￿ appropriate mitigation of safeguarding risks arising from potential abusers largeling church settings wlhin the dI0￿se. There is a risk that strain on parish andlor diocesan resources may lead to vulnerability, and potential non-compliance wtth House of Bishop s Safeguarding Policy. Appointment processes are documented to ensure compliance with the iequiremenls of Safer Recruitment and 15 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report {continued) Year ended 31 December 2025 People Management. The Board continued to be aware of the potenb.al for safeguarding rnatters to be raised due lo increased reporting and awareness of safèguarding issues (both current and historicall. The Diocesan Safeguarding Adv150ry Panel meets regularly to ensure that the DDBF maintains appiopriale controls lo prevent. as well as enlify and resolve. any issues that arise. and the Board welcomes the safeguarding audit from INEQE a5 part of the national programme of safeguarding audrts. re￿rted in Au9U5t 2025 which provided an independent review of the DDBF'S safeguarding processes a￿1 pracbces_ Recommendations are being implemented as appropriate followng this ￿￿ew. aci of Leadershi The capacity of the senior leadership team was stretched during the period of episcopal vacancy being loriger than originally ant￿ipated alongside a series of short-term vacancies. Short-terrn measure5 were successfully implemented lo support the team. includirYJ the appointment ol three Assistant Archdeacons. The vacancy in the Archdeaconry of Sunderland was filled by the appointment of Ven. Katherine Bagnall in September 2025. In February 2026 it was announced that the Ven RL Simpson, Archdeacon of Auckland. had been nominated lo be the next Bishop of Durham. Followng the appointment of the Rl Revd SE Clark lo be¢ome Bishop of Ely in January 2026. a vacancy will arise in the See of Jairow alongside a vacancy in the Archdeaconry of Auckland. Further measures are being taken to ensufe that capacty of the leadership team is strengthened during this period. Team Ail ol these factors are induded in the Board's Risk Register. structure overnan¢e and mana ement The diccese of Durham is one of the 41 English dI0￿Se$ that. along wrth the diocese in Europ&, make up the Church of England. The Church of England is episcopally led (there are 108 bishops) and synodically govemed. The General Synod consis15 of three houses. one of which comprises diocesan bishops and elected representstTves from suffragan and area bishops. and h¥0 of which are elected from the larty and clergy of each diocese. 11 meets in London or Yofk al Seast twice annually to ConsKI￿ legÈsl*ion for the good of the Church. Furthei details on the structure and governance of the Church of England can be found on its webslte". www.churchofen land.or The financial transactions of the national church do not forrn part of these financial statements. The Diocese of Durham stretches from the Tyne to the T&s and Ihe Dales to the Sea covering an area of 2,530 square kilometres. There are 256 Anglican churches across 205 parishes. and two Bishops. Mission Orders IBMO'sl and these are grouped into 13 deaneries and three archdeaconries. The mission of the Church of England is mainly carried out al parish level and the DDBF provides pastoral and financial support lo the parishes. Each parish is governed by a Parochial ChLFrch Ciyjncil {PCCI. which is a corporate Charity. Therefore. except where indicated otherwise. the transactions of PCCS do not form part of these financial statements. Durharn Cathedral is the mother chuich of the DI0￿Se of Durham and legally is constituted as a separate enlily with its Dwn g0Veman￿ slruclures. Its financial transactions do not tor￿ part of these financial slalements. Governance The di￿Se elects a Diocesan Syn(MJ. ￿￿th representation from each deanery in accordance wth the church representation rules and is govemed by the Diocesan Bishop in synod The Diocesan Synod normally meets twice a year. Many of the Diocesan Synod's iesponsibilities have been (lelegated lo the Bishop's Council, which acts as the Diocesan Syni*l"s Standing Committee. The day lo day running of operations is delegated lo 16 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 the staff team lead by the diocesan secretary and olhei key manag￿ent personnel as sel out in note 19. All key management personnel report lo the Oiocesan Bishop. Committee stnjcture The diocese is governed by the Bishop's Council. which coordinates the life and WOTft of the diocese in support of the mission of the Church. in accordance with the priorities sel by the Bishop and the Diocesan Synod. In the Diocese of Durham. the membership of the Bishop's Council is coteminous with that of the DDBF and also the Diocesan Mission and Pastoral Committee. The Diocesan Mission and Pastoral Committee is resprmsible for the task of approving pastoral reorganisalion in the diocese, takn'ng account of available clergy numbers and making use of new pattems of ministry. This arrangement means that the trustees of the DDBF have responsibility and oversight of all aspects of dI0￿san life and are therefore able to Co-ordinate stralegic. finanaal and Operation￿ de¢isions. The Bishop's Council is supported by committees that infiuence Ehe operations ofthe Board_ Financè Gmu The DDBF delegate5 certain duties and responsibilities to the Finan￿ Group including.. Assisting the Board to deal financial strategy and management", Aulhorising legal propety or investment strategy conducted on behalf of the Boaid-, Conducting urgent bkjsiness ot the Board beiween Board meeb"ngs'. Overseeing the preparation ol the annual DDBF budget and financial statements for submission lo the 8oard', Receiving regular management accounting inforniation.. and Acting as the DDBF'S HR Committee, overseeing the temis and conditions of the DDBF employees. Audit and Risk Committee The ODBF Audit and Risk Committee maintains an oversigm ot the diocese's govemance and risk management including.. Adopting a risk-based approach arvj untlertaking a planned programme of work examining areas of diocesan a¢livity'. Overseeing the extemal audit of Ihe DDBF'S trustees. report and financial stalemenls," Considering inlemal control and stewardship of Ihe DDBF-S re50urces." and Reporting ils findings annually lo the Bishop's Council as a ¢rib"cal element of the Bishop's Council's annual reFOrting requirements. Investment Committee DDBF has responsibility foi the management of glebe propety and investments which generate income to support the cost of stipends. 11 is also the dittesan authority for parochial and other irusls and incotporales the ftjnctions and responsibilf(ies of the Diocesan Parsonages Board. With the exception of major Iransaclions. the DDBF delegates these responsibilrties lo the Investment Committee. Dioces&n Sa uardAn Adviso Panel The Diocesan Safeguarding Advisory Panel is chaired independently and monitr>rs safeguarding practice. in¢luding ￿SeWOrk and training within the diocese_ Its membership includes the Local Authority Designated 17 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report (continued) Year ended 31 December 2025 Officer, Police and Victim1Su￿N0r vol￿ representabon. Church Buildin s Panel The Church BLJildings Panel is a non-stslutory group. which offers grants and 108ns to Parochial Church Councils for works lo church buildings. hurches Uses Panel Closed The Closed Churche5 Uses Committee is a non-statulory group. which was created to act on behalf of the Diocesan Mission and Pastoral Committee. It seeks appropriate altemalive uses for churches in the di0￿Se which have been declared closed for regular public worship. strale Misston DelNe Boalll The Strategic Mission Delivery Board provides strategic oversight for mission programmes. 11 champions and monitors progress, acts as an escalation point for key issues, approves significant changes, approves communications and ensures reports are made lo Bishop's Council. It is supported by Programme Boards as follows.. Energising Growth-. Engaging Children, Youth and YoLtng Adufis", Mission and Ministry Development", Caftng for God's Creation," Challenging Poverty. In addition. Ihere are three statutory Committees and Boards that are not directly answerable to the Bishop's Council. but influence ils operatson.. Commrttee Dioces8n Adviso The Diocesan Advisory Committee advises on matters affecting churches and places of worship in the dI0￿se, such as". the granting of faculties. architecture, archaeology, art and the history ol places of worship., the use and care of places of worship and their contents." and the care c>f churchyaids. DI0￿$an Board ofPalmna The Di0￿$8n Board of Patronage, which is constituted under the Provisions of the Patronage (Beneficesl Measure 1986, Is sole patron of one benefice in Ihe dI0￿se. Diocesan Board of Education The DioGe5an Board of Education has ￿spOnsIbl1￿ for 57 church schools across the diocese17 of which are Voluntary As'ded. 13 are Voluntary Controlled, and 37 a￿ Academies, which includes one academy Free School). It provides both educabonal and pastoral leadership support to all Its schools and has a particular commrtmenl lo enhancing the qualrty of provision for religious education. collective worship and Ihe spiritU81. moral, social. and C￿￿ural development of all pupils. The Board of Education is not incorporated and therefore financial accounlabilty for the education agenda rests with the DDBF. The Board of Education operates as a ststtrtory committee of the DDBF. Public benefit statement The directors and trustees are aware of the Charty CommissKJn's guid3n¢e on public beneff( in The Advancement of Religion for the Public Benefit and have had regard lo il in their administration of the DDBF. The directors believe that. by promoting the work of the Church of England in the Diocese of Durham, it helps to promote the whole mission of the Church (pastoral. evangelistic. swial and ecumenicall more effectively, both in Ihe diocese as a whole and in rts individual parishes, and that in doing so il prowdes a benefit ID the public by.. Providing facilities for public worship. pastoral care and spiritual, moral and intelleciual development. both for its members and for anyone who wishes lo benefit fr(xn what the Church offers., and Promob"ng Christian values. and service by member5 of the Church sn and to their communities, lo the benefit of individuals and society as a whole_ 18 Durham Diocesan Board of Finance IA company limited by guarantee) Trustees, report {continued) Year ended 31 December 2025 The Iruslees are custodian trustees in ￿latIon lo certain PCC propety. Trustee recruilmenl selection and I[￿UctiOn Trustees are also members of the Bishop's Coun¢il and are elected or appointed by the members of the Dio¢esan Synod in accordance wÈth the rules for election. Al trustees (e￿1Ve induction at the start of their term of office and receive additional induction where appropriate_ Trustees are regisleied as direclors at Companies House and are required lo complete a declafalion that they are eligible to serve as a director as well as an annual declaration of Interest. Rernuneration of ke mana As the DDBF has delegated responsibility for human resource issues to the Finance Group, this group 15 responsible for agreeing the salary s￿leS for all DDBF employees and for seth.ng the remuneration for senior employees. ement ersonnd Related arties The DDBF had one wholly owned subsidiary. the Diocese of Durham Educalitsnal Trust. It was dissolved on 21 January 2025 and dié not trade in 2025 prior to that date. Or ani5ations with which the DDBF co-o rates in furtherin The DDBF works wlh a range of organisations which a￿ either part of or associated with the Church of England. or other Christsan denominations lo achieve its objectives. Some of those are sel out below. and in sorne cases, there are a non-controlling number of shared trustees be￿een these organisations and the DDBF_ The DDBF ensures that such common lrnsteeships are appropriately declared and conflicts of interest are mitigated when making decisions relating to such organisations. General S nod. Church Commissioners and A￿hbISho ' Counul The DDBF has lo comply with Measures passed by the General Synod of the Church of England and Is quired to make certain annual payrnenls lo the Archbishops. Counal towards the running CDSts of the National Church. The DDBF is a recipient of funding ftom several drfferent grant funding streams operated by the Arthbishops. Council. The stipends and certain other costs ol the Diocesan and Suffragan Bishops are bome by the Church Commissioners. Parochial Church Councils PCCS The DDBF is required by Measure to be Custodian trustee in relation to PCC property. but has no control over PCCS. which are independenl charities. The accounts of PCCS do not form part of these financial statements. PCCS are able to in1luen￿ the decision-making wrthin DDBF and at Diocesan Synod level through representations to those bodies and through the inpth oflheir Deanery Synods. Multi Academ TnAsIs MATS The DDBF is a membei of several MATS, including the Durham and Newcastle Diocesan Learning Trust. Unb"11 September 2024, the Di0￿san Directoi of Educ2bon was a direcior of the Durham and Newcastle Diocesan Learning Trust at which point he re￿gned as Director of Educab'on to take up the role of CEO of Ihe Trust as 8 full lime role. its aims Newcastle Diocesan Educat￿￿ 8oanl Limiled The Newcasde Diocesan Educalion Board Limited INDEB} has ￿$￿)nSIbIlIty for 49 church schools {plus 2 affiliated schwls wrth an anglican foundation) across the Oiocese of Newcastle. Unlike ils counterpart in Durharn, NDE8 is an incorporated charitable company and reg1slered charity The dioceses operate a joint education team lo manage the delivery of their objectives acrDSS the two dioceses, and until 1 September 2024, when they were transferred to the Joint Education Team LLP, this charity employed a team of g employees working jointly for NDEB and the DDBF. Durham Diocesan Board of Finance IA company limited ty guarantee) Trustees, report (continued) Year ended 31 December 2025 Joint Educat￿rR Team LLP The Joint Educab'on Team LLP is a Limrted Liabilty Partnership between the DDBF and NOEB, which from 1 September 2024 jointly employs 9 employees to carry out Ihe work of the diocesan boards of education in both Durham and Newcasue dioceses. tirfin A registered charity whose obj-eclive is the advan￿ment of the Christian religion by the provision of a house of retreat (Shepherds Dene Retreat House at Riding Mill, Northumbertandl for rnembers of the Church of England whelher clerical or lay who are resident or working in the area comprising the dioceses of Durham and New¢astle. Newall Trust Lindisfame Coll of Theolo and CranmeTHall. St John's Colle The region's two theological educational institutions. both are registered charits'es whose objects included the promotion and delivery of education for both lay and oidained members of parb"cipab"ng Christian ur¢hes and the provision of olhei theological and ministerial training to both lay and ordained people. Northumbrian Induslrial Miss A registered charity which organises the activities of around 40 associate chaplains who engage with people in their places of work. 11 also works with ministries in other sectors. in local churches anol with other agencies. Hos ilal of God al Greatham A registered charity which provides residential care and alms-houses for older people and makes grants to other charities within the area of benefit Lord Crewe s Chari A registered charity, one of whose prinapal aims is to assisl necessiious clergy and their dependents in the dioceses of Durham and Newcastle. particularly for the edu¢ation of their children, and lo assist them in other demonstrable financial need. and which provi¢Jes grant funding used by the di0￿Se lo fund its Challenging Poverty priority and to provide a dergy counse11ing servi￿_ Sl Hild and St 8ede Trusl A charitsble trust whose oty'ectives indude the advancement of further and higher education in the dI0￿seS of Durham and Newcastle. wrth a fLXUS on the advancement of educab.on in accordance with the doctrines of the Church of England. Communities To Iher Dutham A charity which works with churches and communities lo thallenge social injustice and lo enable communit￿$ lo flourish. Duthaffl Lesotho Dlocesan knnk A registered charity which aitns to develop educational AIDS awareness and incorne generating projects in Lesotho. It also develops educational projects foi schools and lo raise awareness and support lor inib'alives in the Diocese of Durham which foster closer spiritual links between the Anglican Church in Lesotho and Duiham. North East Churches Aclln Iher A charity which works ecumenically lo serve the churche5 of the North East through improving cornmuni¢ation and developing partnerships and connections between churches of different denominations. 20 Durham Diocesan Board of Finance IA Company limited by guarnntsel Trustees, report (continued) Year ended 31 December 2025 North East Reli ious Leamin A registered charity which aims lo support religious edueab"on. Itteracy and leaming in schools and churches across the North East of England Ihrough Ihe provision of resouices. training and networking (pportunibes. ResOU￿e Cent Political contributions No polib'¢al contributions have been made during the year (2024.- none). Statement of disclosure to the auditor So far as the trustees are aware- there is no relevant audrt information of which the charitable company's auditor is unaware, and we have taken all the steps that we ought to have taken as trustees in order to make ourselves aware of any relevant audit information and to establish that the charitalAe company's audrtor is aware of than infom)alion. Auditor A resolution to Teappoint VNW LLP as audrtor fof the 2026 financial year was tabled at the Board's Annual General Meeting. In approving the directors. and tnjstees. report the directors of the company are also approving the strategic report 2s required under the Companies Act 201￿. On behalf of the Board Canon Marga￿t Vaughan Vice Chair 28 April 2026 21 Durham Diocesan Board of Finance IA company limited by guardntee staternent of trustees, responsibilities Year ended 31 December 2025 The trustees are responsible for preparing the Annual Report which incosporales the Strategic Report, and the financial slalements in accordance with applicable law and regulations. Company law reqLJires the trustees las diie¢lorsl to pfepare financial stalements for each financial year. Under that law the trustees have elected to Prepare the financial statements in accordance with United Kingdom Generalty Accepted Accounting Practice IUnf(ed Kingdom Accounting Standards ané applicable lawl. Under cornpany law the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of the affairs of the chantable company and of Ihe surplus or deficit ol the charitable company for that period. In preparing these finan(ial ststernents the trustees are requird tg.. Select suitable accounb.ng polic￿$ and apply them consislenty.. Observe the methods and pnncipals in the Charities SORP.. Make judgements and estimates that are reasonable and WL¥Jent. Stale whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements.. Prepare the financial statements on the going con￿r￿ basis unless it is inappropriate to Presume that the charitable company will continue in business.. The directors are responsible for keeping adequate accounting recLYds that are sufficient to show and explain the chairtable company's transactions and disclose with ieasonable accuracy at any time the financial position ol the charitable company and enable them to ensure that the financial statements Comply wth the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularitie5. 22 Independent auditorfs report to the members of Durham Diocesan Board of Finance (continued) Opinlon We have audited the financial statements of Durham Diocesan Board of Finance (the 'charilable companyj for the year ended 31 D￿ember 2025 which comprise the Statement of financial activities. the income and expendrture account, the balance sheet. the statement of cash flows and the related notes. including a summary ol significant accounting policie5. The financial reporting tramework that has been applied in their preparation is applicable law and United ￿'ngdoM Accounting Standards, Including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Iunited Kingdom Generally Accepted Accounting Practi￿1. In our opinion the financial ststemenls". gNe a true and fair view of the state of the charrtable company's affairs as al 31 December 2025 and of its incoming resources and application of resol1r￿S, including its income and expenditure ft)r the year then ended.. have been properly prepared in accordance United ￿"ngdoM Generally Accepled Accounting Piaclice", and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan￿ with lnlemab.onal Stsndards on Auditing IUKI {'ISAs IUKI'I and applicable law. Our responsibilities under those standards are further described in the 'Audilor's responsibilities lor the audit of the finanaal statements, section of our report. We are independent of the charitable company in accordance wrth the ethical requirements that are relevant to our a￿1[ ol the financial staternents in the United Kingdom. including the Financial Reporting Council's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden¢e we have obtained is sufficient and appropriate lo 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 concem basis of accounting in the preparation of the financial slalements is appropriate. Based on the work we have performed. we have not idenlffied any fflalerial uncertainties relating lo events or conditions that. individually or collectively, may cast significant doubt on the charitable company's abilty lo ntinue as a going concern for a penod of at least ￿e1Ve months fr(xn when the financial statements are authorised for issue. Our responsibilities and the responsibilrties of the trustees wrth respEcl lo going concetn are described in the relevant sections of this report_ Other Infom)ation The other information compiises the information included in the annual report other than the financial slalements and our audrtorfs report Ihereon The trustees are reSp￿Sible for the other information contained within the annual report. Our opinion on the financial stslemen15 does not cover the other infomalion and, except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance nclusion Ihereon. Our responsibilty is lo read the other infomialion and. in doing so. consider whether the other information is materially inconsislenl wrth the financial statements or our knowledge obtained in the course of the audit, 01 olhetwse appears lo be malerialty misslaled. 11 we identify such material inconsistencies or apparenl material misstatements. we are required lo determine whether this gives rise lo a material rnisslatement in the financi21 statements theMse￿es. If. based on the work we have performed, we conclude that there is a material misstalement of this other informab"on. we are required to report that fact. We have nothing lo report in this ward. 23 Independent auditorfs report to the members of Durham Diocesan Board of Finance {continued) Oplnion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in U]e Course of the audit= the information given in the Trustees. report including the Strategic report for the financial ye8r for which the financial statements are prepared is consistent the financial statements. the Trustees. report and the Strategic report have been prepared in a¢¢ordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charrtab]e company and rts environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, report including the Strategic report. We have nothing to report in respect of the following matters in relabon to which Companies Act 2006 requires us to reFy)rt lo you if. in our opinion". adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us-, or the financial stslements are not in agreement wrth the a(tounting records and relurn5-, or certain disclosures of trustees, remuneration speofied by law are nol made,. or we have not received all the informab.on and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilrties statement. the trustees (who are also the dTre¢tors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true arid fair Mew. and for such internal control as the truslees determine is necessary to enable the preparation of financial statements that are free from material misslalement. whether due to fraud or errot. In preparing the financial stslements. the trustees are responsible for assessing the charitable company's ability to continue as a going concern. disclosing. as ap￿iCable. matters ielaled lo going concem and using the ing concern basis of accounting unless the trustees either intend lo liquidate the charitable company or lo cease operations. or have no realistic ajtemattve but lo do so. Auditor's responsibilities for the audit of the financial ststements Our objectives are lo obtain reasonable assuran￿ about whether the financial statements a5 a whole are free frorn material misstatement. whether due lo 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 aLJdit conducted in accordance with ISAS IUKI will a￿ayS delect a material misstatement when it exists. Misslalements can arise fvDrll fraud Or error and are considered material if, individually or in the aggregale. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilibes for the audit of the firRnc¢al stslemenls is located on the Financial Reporting Council's websrte al". www.frc.org.uklauditorsrestx)nsibilities. This descripbon fomis part of our auditor's report. 24 Independent auditorfs report to the members of Durham Diocesan Board of Finance (continued) Extent to which the audit was considered capable of dètecting irregularities, including fraud Irregularities, including fraud. are instan￿5 of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined atx)ve. to detect material misslalemenls in respect of irregularities. including fraud. The exlent to which our prcKedures are capable of detecting Irr￿Ul3r1￿'es. including fraud is detailed below. However. rt is the primary resw)nsibility of management, with the oversight of those charged with govemance. to ensure that the entity's operations are conducted in ac¢ordan¢e with the provisions of laws and regulations and for the prevention and detecticn of fraud. We obtain and update our Und￿Standing of Ihe charitable company, rts ath"vrties, ils control environment, and likely future developments. including in relalion to Ihe legal and regulatory tramework applicable and how the charitable cornpany is complying with that framework. Based on this understanding. we idenb'fy and assess the risks of material rnisstatement of the financial statements, whether due lo fraud or error. design and perform audit procedures responsive to those risks, and obtain audrt evidence that is suffi¢ienl and appropriate to provide a basis for our opinion. This includes considerab.on of the risk of acts by the entity that were ￿ntrary to applicable laws and regulations. induding fraud. Based on our understanding of the charitable company, we identified that the Pri1￿1paI risks of non-compliance with laws and regulations related to laws and regulations that direcuy affect the financial statements including financial reporting legislation (including relaled companies legislation), distributable profits legislation, pension legislation and UK tax legislation. In addition. the charitable company is Subject to many other laws and regulations where the consequences of non-complian￿ could have a material effect on amounts ¢y disclosures in the financial stslemenls. for instance Ihrough Ihe imposition of fines and liligalion. We considered the extent lo which non-complian￿ with laws and regulations might have a material effect on the financial slalemenls and we have assessed the extent of Complian￿ wrth these laws and regulatKJns as part of our procedures on the related financial statement rtems. We also evaluated managements. incentives and opportunities for fraudulent manipulation of the finan¢ial slatetnenls (including the risk of override of ¢ontrolsl and determined thal the principal risks related lo posting inappropriate journal entries lo manipulate financial results. management bias in accounting estimates, as well as improper revenue recognition which Includes fraudulent posts.ng ofjournal entries to ievenue. Audit proceduie5 performed by the engagement team included.. Inquiry of management and those charged with govemance regarding actual and potential litigation or claims as well as whether they have knowledge of any actual. suspected or alleged fraud," Reviewing thè finanoal slalement disclosures and lesting to supporting documentation to assess compliance with applicable laws and regulatsons.. Reviewing meeting minutes lo idenlfy reported frauds and any Fy)lenlial non-compliance with laws and regulab"ons', Identifying journal entries based on risk criteria and testing the identified entries to supporting documentalion. in particular journal entries wth unusual account combinations". and Challenging assumptions and judgments made by management in their significant accounting &slimales and evaluating whether there was any evidence ol bias by the directors that represented a risk of material misstalemenl ¢Jue lo fraud. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularib'es. including those leading to a material misstatement in the financtal slalements w n￿-cOmplIanCe with regulation. This risk increases the more that Complian￿ syith a law or regulation is removed from the events and transactions reflected in the finanaal statements. as we will be less likely lo beo)me aware of instances of non-compliance. 25 Independent auditorfs report to the members of Durham Diocesan Board of Finance (continued) The risk is also greater regarding irregularities occurring due lo fraijd rather than error, as fraud involves irilenlional concealment. forgery. collusion, omission or misrepresentslion. Use of our report This report is rnade solely lo the wmpany's members. as a boo¥, in &cordan¢e with Chapter 3 of Part 16 of the Companie5 Act 2006. Our audrt work has been undertaken so that we might state to the ¢ompany's members those matters we are required to state to them in an auditoffs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume ￿SponsIbl11ty to anyone other than the company and the company's members, as a body, for our audrt work. for this report, or for the opinions we have formed. Anne Hallowell Bsc FCA DChA (Senior Statutory Auditor) for and on behalf of UNW LLP. Statutory Auditor Chartered Accountants Newcastle upon Tyne 28 April 2026 26 Durham Diocesan Board of Finance IA company limited by guarantsel Statement of financial activities Year ended 31 December 2025 Unrestricted Restricted Endowment funds nds funds 2025 2025 202S Total funds 2025 Total funds 2024 Note £000 £000 £000 £000 £000 Income and endowments from: Donations.. Parish Contributions Archbishops, Council Other Charitable activities Other trading activities Investments Other income 4,237 1,916 137 478 751 273 4,237 4,581 751 478 762 1,134 $31 4,230 4,393 626 631 574 1,096 1,357 2,665 614 11 276 42 585 10 Total income and endowments Expenditure on- Raising funds Charitable activities-. Contributions to Archbishops. Council Resourcing minislry and mission Resourcing education 7.792 3.608 1.074 12.474 12,907 33 33 55 562 8,949 240 562 11.937 240 514 12,282 241 14 15 2,982 Totsl expenditure 9,784 2.982 12.772 13.092 Net lexpenditurellincome before net gains on investments {1,9921 626 1,068 12981 11851 Net Ilossesllgains on investments 11511 14641 19161 11,5311 1,097 Net incomellexpenditurel 12.1431 162 152 11.8291 912 Transfers beh¥een funds 30 1.737 12,5861 Net movement in funds 406 1,011 2.434 1,829 912 Reconciliation of funds: Total funds brought forward Net movement in funds 5.927 {406} 13,397 1.011 56.308 75,632 12.4341 11.8291 74,720 912 Total funds carried fojward 27 5.521 14,408 53.874 73,803 75,632 The notes on pages 3110 65 fomi part of these financial statements. 27 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Summary income and expenditure account Year ended 31 December 2025 Total funds 2025 £000 Total funds 2024 £000 Note Inc(Mne 11,400 11.798 GaiN51lk>ssesl on investments 1615} 277 Gross income in the reporting period Less.. Total expenditure 10,785 112,766) 12.075 113.0781 Net incomellexpenditurel for the reporting period Other COTnprehensive income Net assets transferred from endowTnents 11,981} 11,0031 30 2,586 2,559 Net comprehensive income for the year 605 1,556 The inctsme and expenditure account is derived from the statement of financial aclwities with movements in endowment funds excluded to comply wrth company law. All income and expenditure is derived from continuing activities. The note5 on pages 31 to 65 form part of these financial stsleThents_ 28 Durham Diocesan Board of Finance IA company limited by guarnnteel Balance sheet Year ended 31 December 2025 2025 £000 2024 £000 Note Fixed assets Tangible assets Investments 20 21 36,711 35.451 36,Q17 37.034 72.162 73.051 Current assets Oeblors Cash on deposit Cash at bank and in hand 993 273 1,299 2.S65 2.505 1.171 1.106 23 4,782 Credrtors.. amoun15 falling due within one year 24 875 2,152 Net current assets 1.690 2.630 Total assets less current liabilities Creditors." amounts falling due after more than one year 73.852 75,681 25 {491 1491 Total net assets 73,803 75,632 Charity funds Endowmenl funds 27 53.874 56,308 Reslti¢ted funds 27 14,408 13,397 Unrestricted funds Designated funds General funds 27 27 5,514 5,920 Total unreslncled funijs 27 5,521 5,927 Total funds 73,803 75,632 The trustee5 *now￿dge their reSpO￿bIlitieS for oThplyiryJ wth Ihe reqthrernents ol the Act with ie5peci to accounting c(Kds and preparation ol finanrial statements The financ￿81 statements ¥%ere approved aThJ authorised for is5￿ by Ihe t[Us￿$ on 28 April 2026 arxj signed on their behalf by.. AZ.s Canon Margaret Vaughan Chair Company regstered number. (K)192018 The notes on pages 31 to 65 form part ofthese financpl ststements 29 Durham Diocesan Board of Finance IA company limited by guardllteel Statement of cash flows Year ended 31 December 2025 2025 £000 2024 £000 Note Cash flows from operating activities Net cash used in operating activities 31 11.6851 12,3011 Cash flows from investing activities Dividends. interests and rents from investments Proceeds frofft the sale of tangible fixed assets Purchase of tangible fix￿ assets Proceeds from sale ol investments 1,134 1,589 11,7951 52 1,09S 1,543 11,3021 875 Net cash provided byl {used inl investing activities 980 2,212 Cash flows from financing activities New loans advanced Repayment of loans advanced 22 1211 Net cash provided byl Ivsed inl financing activities Change in ¢ash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 170SI 2,277 188 2,365 Cash and cash equivalents at the end of the year 32 1,572 2.277 The notes on pages 30 to 65 fomi part of these finanaal ststemenls 30 Durham Diocesan Board of Finance IA company limlted by guarantee) Notes to the financial ststements Year ended 31 December 2025 General informatlon Durham Di0￿san Board of Finance is a charitable company limited by membership guarantee and incorporated and domiciled in England. The registered office address is Culhbert House, Slonebridge, Durham, DH1 3RY. Accounting policies 11 Basis of prepardtion of financial ststements The financial statements have been Prepa￿ in accordance with the Chartiies SORP IFRS 1021 Accounting and ReportirvJ by Charities." Slalement of Recommended Pra¢ti¢e applicable lo charities preparing their accounts in accordan￿ wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Durham Diocesan Board of Finance meets the definition of a public benefrt entity under FRS 102_ Assets and Liabilities are initially recognised al hislorical cost or transaction value unless otherwise stated In the relevant accounting policy. The financial slalements are presented in pounds sterting which is the functional currency of the company 2nd are rounded to the nearest £1.000. 2.2 Exemption from prepartng group accounts The charitablè company was the controlling party of DID￿se of Durharn Educational Trust. a domanl subsidiary undertaking. In the opinion of the ttuslees. Ihe size and assets ol the subsidiary undertaking meant that the presentation of the combined resu115 and finanual position in consolidated financial statements was not material for the purpose of giving a true and fair view. These financial statements presenl the resutts and Ihe position of the charitable company as single enb.ty and not as a group. The subsidiary was dis$￿ed in January 2025. 13 Going Concern The trustees have considered the availability of reserves and cash Ljpon the going Concem basis of preparation of these financial statements. Although uncertainty still remains, particularly over the recovery ol parish income and the real-lemis reduction in the value of parish share. The trustees are comfortable that the measures tsken lo date. and the managed budget deficit for 2026, along with the Currenl levels of cash and short-term dep05115. are suffiaenl to a11DW the Diocese lo continue lo operate as a going con￿￿ f￿ the fOres￿able future notwrthslanding the current restrithons. 31 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Notes to the financial statements Year ended 31 December 2025 Accounting policies lcontinued) 2.4 Income l income is recognised once the company has entillemenl lo the income. il is probable that the income will be received and the amount of income [￿l¥able can be measured reliably. Grants are incluLted in the slalement of financial ac11vit￿S on a receivable basis. The balance of income re￿1Ve￿ for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt. its recognition is defeired and included in Creditors as deferred income. Where entrtlemenl occurs before income is received, the income is accrued. The principal source of income of the DDBF is parish share. The share monies are reeognised in the slalemenl of finanaal aclwilies in the period in which they are received, and arrears are not shown as debtors Sin￿ only constructive pressure can be applied to encourage parishes to pay any outstanding sums. Debts for parish share are not enforceable The Stipends Fund Capital account is govemed by the DK)ce5an Stipend5' Fund Measure 1953, as amended, and the use of the income is restn.cled for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions. therefore. are satisfied. It is on this basis that the income and the {normally much larger) related expendtture are both included in the unrestri¢led column of the SOFA for the sake of greater darity and simplicity in financial ieporting. The Diocese adopts a total retum approach to the investments in this fund and Consequently recognises the income and any ¢Jirecl expenditure as ervjowed, and transfers an amount each year lo unreslricled funds to cover the expenditure on sb"pends which this fund is held for. Selective allocab'ons from the Church Commissioners credited to the Stipends and General Fund on a monthly basis and recognised in the SOFA a5 incorning resources. Legaeiès, contributions and other donations are accounted for when condf(ions for their receipt have been met. Investmenl incorne is accounted for when receivable. Rental income for glebe and other propety is shown separately. Incoming resources from Charitable activities including Clergy fees. ¢haplain¢y income and guaranteed annuitI'es are receivaNe on a monlhty basis. Other sundry income, including gains on dispN)sal of propefb"es, is iecognised in the SOFA in the accounting period in which monies are receivable. 2.5 Expenditure Expenditu￿ is induded on the accruals basis alld has teen classified under headings that aggregate all costs related lo the SOFA category. Expenditure is stated inclusive of irrecoverable VAT. Costs ol raising funds are ¢onslrained lo costs relab.ng lo the temporary renting out of parsonages and investment rnanagement costs of glebe and any olhei investmen15 held. Grants payable are charged in the year when the offer is conveyed lo the recipient except in those cases where the offer Is condib.onal on the recipient sabsfying performance or other discretionary requirements lo the satisfaction of the Board. such grants being rec￿niSed as expendiluie when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been mel at the year end are noted as a commitment. but not accrued as expenditure. 32 Durham Diocesan Board of Finance IA company limited by guarnnteel Notes to the financial statements Year ended 31 December 2025 Accounting policies {continuedl 2.5 Expendlture lcontlnuedl Payments in support of services provided by the Archbishops. Council are regarded as grants and the annual arnounls payable are divided into monthly inslalments. Resourcing ministry and mission costs are the costs incutred by the Board in maintaining resident clergy in numerous parishes throughout the Diocese. These indLSde stipends. national insurance, housing, relocation. and a range of 5UPPOrt costs. Support costs ¢onsisl of central management. administrafr'on and governance Costs. The amount spent on raising funds and other activities is considere(I lo- be immaterial and all support costs are allocated lo the purpose of chantable aciivities. Cost5 *e allocated wherever possible directly lo the activity lo which they relate, but where such direct albcation is not possible, the remainder is allocated on an approxrnale staff time basis_ 2.6 Pension Gontributions The DDBF'S siaff are members of the Church Workers PensKJn Fund and Clergy are members of e Church of England Funded Pension Scheme. TIE pknsion costs charged as resources expended represent the DDBF'S contributions payable in respect of Ihe accounting period. in accordance wrth FRS 102. Deficit funding for the pension sctteme5 to which the DDBF participates is accrued at CUTrent value in creditors distinguished btheen contributions fallin9 dLJe within one year and after more than one year_ The DDBF also operates a stakeholder s¢heme and contllbules to personal pension schemes for which contr"bub'ons are charged to the SOFA as they fall due. 2.7 Tangible fixed assets and dep￿lation Tangible ffixed assets are initialty recognised at cost Freehold &ndIeasel￿1d buildings 11 is the DDBF'S policy that in respect of many of rts buildings. no depreoalion is charged as any provision would not be material due to the very long expected remaining useful economic life in each case. and because their expected residual value 15 not materially less than their carrying value. The DDBF has a policy of regular structuial inspection. repair and maintenance. which in the case Df residual properties is in a¢cordance with the Repair of Benefices Building Measure 1972 and Pfoperties are therefore unlikely lo deteriorate or suffer from obsolescen￿. In addition. disposals of properties occur well before the end of their economic lives and disposal proceeds are usually nol less than their carrying value. Annual impaimenl reviews are perfofflied in a￿Ordar￿e with the requirements of FRS102 10 ensure that the carrying value is not more than the recoverable amount. Where the recoverable amount is eslimaled to be less Ihaft the carrying amount. depreciation is charged in the financial staternenls. School buildffngs School buildings are occupied and. in the case of Voluntary Aded schools, irnproved, extended and repaired by the school govemors. The nature of the occupation of these buildings by these exempt and ex￿pIe￿ charities means that DDBF trustees do not have the power lo dispose of Ihe buildings 33 Durham Diocesan Board of Finance IA cornpany Ilmlted by guarantee) Notes to the financial statements Year ended 31 December 2025 Accounting policies Icontinued) 2.7 Tanglble fixed assets and depreciation Icontlnuedl until the school ceases its occupation. which in tum would require the approval of the Secretary of Stsle. Any proceeds of sale would be subje¢t to claw-baGk. by the Secretary of Slate, of related grant aid provided. The trustees consider the Board s ownership to be in the nature of custodianship of the assels and these are therefore not capitalised in the financial statements. Details of the Voluntary Arded %hools can be obtained from the Joint Education Team. DepreCiat￿n on othertangible fixed a&sets Depreciation is provided in order to write off the cost Iless any residual value) of other fixeLI a5se15 over their currently expecied useftjl e￿nomIC Itves al the ftsllowng inrtial rates.. F￿ehOld and leasehold property Fumiture and office equipment Installed Renewable Energy equipment shorter of 50 yeaTS or lease term 33.3% per annurn straight line shorter of 25 years or currendy expected useful e￿nOmiC life 2.8 Total ￿turn investment policy The board passe(l a resolub.on on 1 December 2022 to adopt a total rettjrn policy in restkcl of the stipends capital endowed furmls. This approach allows any increase in the value of an investment lo be used as income. The decision was taken lo ensure th81 Diocese invests in a way that has appropriate regard to the furtherance of ils aims both now and in the future. The board identtfied the relevant funds and apportioned it into the value of the original endowment Iwhi¢h forms the Investment Fund) and the unapplied investment retum Iwhich forms the unapplied total reluml. The calculation of the value of the inveslmenl fund on the dale of adoptson was based upon the book value of assets at 1 January 1997. adjusted for inlabon and additions since that dale. l endowed investment retums are designated as unapplEd total return until Tru5tee5 decide how il is to be used. Al the discielion of the board, some of the total unapplied relum may be allocated lo the income fund each year to be spent on its aims. Trustees may allocate an amount of the unapplied tolal rebjm to Ihe investrnent funds The amounl that Can be allocated lo the investment fvnd is capped. The cap is calculated by using the rise in inflation from a particular date. being either the dale of ￿$olub"0n rf no previou5 allocation has been made or date of the last allocation to ihe investment fund. 29 Investments Investments in agricultural holdings. commercial properties and investment securrties are shown at their market value on the balance sheet date. Ml gains and losses on investments are recognised in the SOFA. Investrnents held by the DDBF as Custodian Itustee ale not included In these accounts. Investments in unlisled investments and the subsidiary are slated at cost less provision for impairment. Investments also include long term loans made by the DDBF under concessionary tern7S. Durham Diocesan Board of Finance IA cofflpany limited by guarantee} Notes to the financial statements Year ended 31 December 2025 A¢¢ounting policies {continuedl 2.10 Finan¢lal instruments Loans Loans made by the DDBF lo (urther its charitable purposes at rates below prevailing market rates are classified as concessionary loans and a¢counted for in accordance wrth Se¢tion 34 of FRS 102. Such loans are inrtialty fecognised and tlleasured al the amount received and subsequently adjusted to rellect any repayments, accrued interest and any subsequent impairment. Debtors Debtor5 ale recognised al the setuemenl amount due. Cash and cash equNalentS Cash on deposrt includes cash held in short lemi highly IiquKI investments wf(h a short maturity of three months or less from the date of acquisih.on or opening of the deposit or similar account. c￿ditorS and p￿v$s￿￿$ Creditors and provisions a￿ re￿nised where the DDBF has a present obligation resulting from a past event that will probably result in the transfer of ftjnds to a third party and the amount due lo settle the Dbligation can be measured or esb"maled ieliatly Creditors and provisions are norrnally reC￿nISed al their settlement amount after allowing for any trade discounts due. Equity share loan The DDBF has one loan for which the setuement proceeds are based on the value of the equity in propety. As this constitutes a non-basic financial inslrumenl under FRS 102 this loan has been rec(￿nISed at fair value and is revalued at each reporting dale. Any gains and losses ari51ng at each ye8r-end are re¢ognised in the SOFA_ 2.11 Operating leases Renials paid under operating leases are charged lo the statement of financial activities on a slraighl line basis over the lease terni. 2.12 Funds Balances are split between general, de5ignaled. resthcted and endowment funds. General funds represent ftjnds which are expendable al the di￿retIOn of the directors in the furtherance ol the objectives of the charity. Such funds may held in order lo finance both working capital and capital investment. Designated fijnds are amounts vthich have been pul aside at the discretion of the directors and are therefore not available for other purpose5. All of the unrestricted funds apart from the General Fund are now regarded as designated. These are included wrth the LSnrestricted funds column in the SOFA. Restricted fijnds represent g¥ant5, donations, legacies and assets which are allocated by the donor for specific purposes. The largest testricted fund is the Pastoral Account. Endowment funds are those held on trust lo be retained for the benefit of the charity as a capital nd. In the case of the endowment funds administered by the Board (Stipends Capital Fund. and Parsonage Houses Fund), there ale discretionary powers lo convert capital into income and. as a result, these funds are Classifi￿ as expendable endoW￿nI. Endowment funds where there 15 no provision for expenditure of caprtal are dassified as permanenl endowment. 35 Durham Diocesan Board of Finance IA company limited by guarantee) Note5 to the financial Statements Year ended 31 December 2025 Accounting policies Itontinuedl 2.12 Fund accounting Icontinuedl The board has adopted a total rebJrn approach to investments held within the Stipend5 Caprt31 Fund. Assets a￿ Invested to Produce J) irwe5tment reLKn wilhtxrt regard to whether that ￿turn is in the forTh of incoffle LY caKxtal appreciation. An allocat￿￿ is m*le eath year from unapplied total relum lo trust ts investment to erwe that lhe capilal vaue cl assets in trust a￿ not eroded over time. Trusts Whe￿ the DD8F * rne￿ty as Cust￿j￿n Iruslee c￿trc4 over the rna￿ag￿ent ol the funds are not included ￿ the fina￿al slatemenls ace summarised in the notès to the finanaal statements. Critical accountsng estimatss and areas of judgment Estimates and judgments are conts'nualty evaluated and are based on historical experience and othei la¢lors. in¢lvdito expects1￿$ ot future events that *e Wieved io be reasonable under the ircurnstsrKes. Key areas subJ"e¢l to estlffl3ti￿ ale as Idl¢Ms.' Fairvalue on ￿YeS(n7eQ1pWrfy The DOBF holds investment property C(￿pristng agricuttura land at lair value. The OD8F uses an independent èxternal quaifièd SLTrveyc* to ￿SesS the this Jand ba%ed on a sile by SAte consideration of the assets and the ma1¢et conditiorks exisb'ng alb* b3￿nce sheet date. Fair vali*s eslimaledlorequrty share loan The DD8F has one loan fcf whth the settlement proceeds are b85ed on the value of the equity in a property. As reouired by FRS102 this loan has been stated in with an estimate olfair value. The DDBF makes use of inlemal experts in arri￿n9 al this fati valL'e. This loan is repayable on the earlier dlhe dealh tsf the borioweror the ￿le of the re￿Ied property and theref￿e the limitYJ of its repayment is uncertain. Therefore. this loan is measured as a profvn of the lar value ai each rewtill9 dale and has nol been discounted. Other estimates included within these finarmial stalements rclthe deweciauon thar9es. None of the eslimales fflade 2ie ¢￿sIdered to carry stgnificanl estimab.on uncertainty. to bear signifunt risk of causing a material adjuslmenl to carrying amounts ofassets and Ik2F*lihes wlhin the next finano81 year. In preparing these financial statements the trustees &) not co￿d￿ th￿eV￿re any signifThnt areas of judgernent that were required in apptyiThJ the charity's ￿￿untiTrj pc4i¢w as sel out above. Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 Parl$h contributions Total funds Total funds 2025 2024 £000 £000 Unrestricted general fund - parish share Contributions pledged and paid Contributions from previous years 4,201 36 4,181 49 4,237 4,230 Current year parish share re￿iptS (excluding ¢onlributi¢)ns from prior years) as a proportion of lolal amounts pledged 96.9% 95.0/ Archbishops. Council Unrestricted Restricted funds funds 2025 2025 £000 £000 Total funds 2025 £000 Lower income communities fund Strategic develtspmenl fund Moving towards net zero Strategic ministry funding Ordinands. training grant 1,916 1,916 2,157 146 325 37 2.157 146 325 37 1,916 2.665 4,581 Un￿StrICted funds 2D24 £000 Restricted funds 2024 £000 Total fLJnds 2024 £000 Lower incorne communities fund Strategic development fvnd Moving towards Nel Zero Stralegic ministry funding Ordinands. training grant 1.998 1,998 1.864 74 429 28 1,864 74 429 28 1.998 2.395 4,393 37 Durham Diocesan Board of Finance IA company limlted by guarantee) Notes to the financial statements Year ended 31 December 2025 Other donations Unrestricted Restrf¢ted funds funds 2025 2025 £000 £000 Total funds 2025 £000 Benefact Trust Lord Crewe's Charty Other grants and donations 113 177 250 324 250 300 24 137 614 751 Unrestricted funds 2024 £000 Reslricled funds 2D24 £000 Total funds 2024 £000 Benefacl Trust Lord Crewe's Chatty Sl Hild and Sl Bede Trust Other grants and donations 135 60 340 13 39 195 340 13 78 39 174 452 626 Income from ¢haritable activities Total funds 2025 £000 Total funds 2024 £000 Slatulory fees Chaplaincy Sl Hild and Sl Bede Trust Miscellaneous income 356 47 387 45 75 190 478 631 38 Durharn Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 Income from other activities Unrestricted funds 2025 £000 Restricted ftjnds 202$ £000 Total funds 202S £000 Rental income trom parsonages Education service level agreements Miscellaneous income 668 668 11 83 11 83 7S1 11 762 Unrestricted ftjnds 2024 £000 Restricted funds 2024 £000 Totsl funds 2024 £000 Rental income from parsonages Education service level agreements Miscellaneous income 557 557 561 13 574 Income from Investments Unrestricted funds 2025 £000 Restricted Endowment funds funds 2025 202S £000 £000 Total funds 2025 £000 Income from UK listed investments Interest receivable Rents receivable 98 120 ss 267 585 950 129 55 273 276 585 1,134 Unrestricted fiJrKIs 2024 £000 Restricted funds 2024 £000 Endowment funds 2024 £000 Total funds 2024 £000 Income from UK listed investments Interest receivable 250 16 587 921 118 57 102 57 Rents receivable 243 266 587 1,098 39 Durharn Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 10. Other income Unrestri¢ted funds 2025 Restrlcted funds 2025 Endowment funds 2025 Total funds 2025 £000 £000 £000 £000 Gain on disposal of properlies 42 $31 Unrestricted frJnds 2024 Reslricled funds 2024 Endowment ftjnds 2024 Total fund5 2024 £000 £000 £000 £000 Gain on disposal ol properbes Pension Surplus on scheme dosure (note 371 21 522 543 814 814 814 1,357 21 522 11. Fundraising costs Unrestricted Endowment funds funds 2025 2025 £000 £000 Total funds 2025 £000 Glebe agents fees Glebe investment costs 14 19 33 14 19 33 Unrestricted Endowment funds funds 2024 2024 £000 £000 Total ftjnds 2024 £000 Glebe agents fees Glebe investment wsls 19 33 52 19 55 40 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 12. Analysis of expenditu￿ by activities Activities undertaken di￿tlEY 2025 £000 Grant funding of activtties 2025 £000 Support costs 202S £000 Total funds 2025 £000 Contributions to Archbishops. Counul (note 131 Resourcing ministry and mission Inote 141 Resourcing Education Inole 15) 562 562 9.874 240 51S 11,937 240 10,114 1,077 1,548 12,739 Activrties undertaken directly 2024 £000 Grant fvnding of acb'vities 2024 £000 Support costs 2024 £000 Total lunds 2024 £000 Contributions lo Archbishops. Counul (note 131 Resourcing ministry and mission {nole 141 Resourcing Education Inole 151 514 514 9,950 241 358 1,974 12,282 241 10.191 872 1,974 13,037 13. Contributions to Archbishops. Council un￿strICted Restricted funds funds 2025 2025 £000 £000 Total funds 2025 Éooo Training for ministry National ch￿￿h responsibilities Grants anol provislolls Pooling of ordinand candidates 221 259 106 1241 221 259 106 1241 562 S62 41 Durharn Diocesan Board of Finance IA cornpany limitèd by guarantee) Notes to the financial statements Year ended 31 December 2025 13. Contributions to Archbishops. Council {continued) Unrestricted Restricted funds funds 2024 2024 £OLIO £000 Totsl funds 2024 £000 Training for ministry National Church responsibilities Grants and provisions Pooling ol ordinand candidates 223 249 120 1781 223 249 120 1781 514 514 14. Expenditure on resourcing mlnisty and mission Unrestricted Restricted Endovfflient funds funds funds 2025 2025 2025 £000 £000 £000 Total funds 2025 £000 Stipends and national insurance Clergy pension Housing costs Removal. resettlement and other grants Mission.. stipendiary, staff and aclNity costs Strategic development costs Other expenses and grants Support for parish ministry (see note 161 131 17 23 3,97S 716 1,978 147 2,623 370 580 1,548 699 1.955 142 694 1.929 370 188 319 392 1,223 8,949 2.982 11,937 42 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 14. Expenditure on resourcing ministry and mission Icontinuedl Unrestricted Restricted Endowment fvnds funds funds 2024 2024 2024 £000 £000 £000 Total funds 2024 £000 Stipends and nab.onal insuian Clergy pension Housing costs Removal, resettlement and other grants Mission.. stipendiary. staff and activity costs Strategic development costs Other expenses and grants Support for parish ministry {see note 161 3.496 791 2.076 114 552 549 130 26 4,045 921 2,102 125 2,123 200 792 1.974 1,571 200 312 480 1.483 8.992 3.279 12,282 15. Resourcing education Unrestricted Restricted funds funds 2025 202S £000 £000 Total fund5 2025 £000 AdministratK)n 240 Unrestricted funds 2024 £000 Restricted funds 2024 £000 Total funds 2024 £000 Administration 241 241 43 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Notes to the financial ststements Year ended 31 December 2025 16. Analysis of support costs Total funds 2025 Total funds 2024 £000 £000 Central staff costs Central office and prernises Technology and communi¢atKJn Depreciation Legal and registry costs Synod. Board and Commtttee expenses Extemal audit Other support costs Other Gosls 763 98 171 43 182 60 936 255 179 43 169 60 29 196 107 41 156 1,548 1,974 17. Analysis of grants made Total 2025 £000 Individuals Institutions £000 £000 From unrestricted funds for National Church responsibilities: Contributions lo Archbishops, Council other grants made". NECAT Lesotho Training for Ministry Grants Resettlement and First Appointment Grants Ordinands, Grants Basic Clergy Development Grants Small Grants Church buildiry committee grants PCCS 456 4S6 25 25 194 142 106 24 142 106 24 80 31 80 31 466 611 1.077 Durham Diocesan Board of Finance IA company limited by guarantee} Notes to the financial statements Year ended 31 December 2025 17. Analysis of grants made (continued) Total 2024 £000 Individuals £000 Institutions £000 From unrestricted funds for National Church responsibilities- Contributions to Archb55hops' Council other grants made: NECAT Northumbrian Industrial Mission Le501ho Training for Ministry Grants Resettlement and First Appointment Grants Ordinands, Grants Basic Clergy Development Grants Small Grants Church building committee gTants PCCS 394 25 25 74 114 120 19 27 74 114 120 19 27 25 518 25 872 354 18. Auditor's remuneration 202S £000 2Q24 £000 Fees payable lo the charitable companys audrtor for the audrt ol the tharitable company's annual accounts Fees payable to the charitable cotnp8n￿S audrtor in respect ot. I non-audil services not included above 30 19. Staff costs 2025 £000 2024 £000 Employee costs during the year were as follows- Wages salaries National insurance contributions Pension costs 1.903 233 247 2,383 1.796 179 300 2,275 45 Durham Diocesan Board of Finance IA company limlted by guaranteel Notes to the financial statements Year ended 31 December 2025 19. Staff costs Icontinued} 2025 £000 2024 £000 The averdge monthly number of employees during the year were as follows= Staff 50 47 The number of higher paid employees was-. 2025 No. 2024 No. In the band £60.001 - £70,000 In the band £70.001 - £80,000 In the band £80.001- £90,000 In the band £90.001 - £100.000 Remuneration of key management personnel Key management personnel are deemed to be those having authority and responsibility. delegated to them by the trustees, for planning, directing and controlling the actiwties of the Diocese. During 2025 they were- Diocesan Secretary Mr J James G Moigan Director of Mission, Discipleship & Ministry Head of Transformational Delivery The Venerable EIEaitlh M Wlkinson MrsAmy H Bums Remuneration. pensions and employerfs national insurance c(XLtributions for the above ernployees amounted to £253,66512024". £221.8681 46 Durham Diocesan Board of Finance IA company lirnited by guarantee) Notes to the financial statements Year ended 31 December 2025 19. Staff costs Icontinuedl Trustees. em01￿ments No trustee re￿iVed any remunernbon frx services as trustee 12024." £n￿). During the year, 7 tr￿stee$ {2024." 7) received Iravelling. sU￿Sten￿ and mcidentsl o)sts, totallng £6.948 (2024." £12.644J in respect of Genefal Synod duties, duttes as archdeacon (K arethjra dean, and other duts'es as trustèès. Dullng Ihe year ihe Board made contrthiic￿5 to the Chvrch Ci*nt¥Ji55iry*rs al ItrE 5tsndard rate agreed Dioeesan Synod towards the slipents. natic￿l ingyance arKJ pension contributions of the licensed dergy WIN) a￿ diieGtor5 01 the Board and tyovided houses. indudiTrJ paym&it ol Cou￿1 lax arbd Maintenan￿ costs, as part r)f norrnal cktgy remLneration. The following tstAe gNes details of the trLtstÈÈ5 who wwe in recwt of a slipend ￿(vor hwsing provided by the DDBF dur¢ng the year. Stipend Housing Yes Yes Yes Ye5 Ye5 Yes Yes Yes Yès Yes The Bishop ofJarri)w-Right Reverend SE CL4rk The Arthdeacon of Auckland- Vener8b￿ RL &"mpson The Archdeacon of Ourham- Venerable EM Wilkinson The Archdeacon of Sundedand -ve￿[able RG Cooper The Archdeacon of Sunderland- venerab￿ KJ Bagnall Reverend B T Huish Reverend MJ Levinsohn Reverend L Sutherland Reverend PA ArncAd Reverwd Canon D Tolhwsl Yes Yes Yes Yes Yes Yes YÈS Yes Yes The DDBF is respw%We for fLmth'rwJ via Churd) C(NxrniSsi￿wS the stipends of licensed 51ipendiaiy clergy in the Diocese. other than bishops and (athedral staff. The DDBF is a150 responsible lor the prOV￿]GXI t￿ houyng for sl'pendiary dwgy in the th"ctese ￿c￿lIng the Suffragan 8ishop. The DDBF paid an average of 128 12024.- 135) StipwKliJy cÈr9y and lay minister5 as office.holders holding parochial or diocesan appointrnènts in Ihe Di0￿e. ar￿ IhE costs were as Idlows. 202S £000 2024 £000 Stipends Nathyjal inslffance contributior Pension costs - ¢Lfftnt year contribubons 3.600 405 765 3.736 335 853 4,770 4.924 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 Tangible fixed assets Office Property equipment Parsonages £000 £000 £000 Glebe Property £000 Total £000 Cost or valuation Al 1 January 2025 Addition5 Disposals Transfer5 between classes Al 31 December 2025 3,845 101 37 19.759 362 1807} 595 19,909 13,284 1,396 12601 S951 13,825 36.989 1.79S 11,0671 3,845 138 37,717 Depreciatlon Al 1 January 2025 Charge for the year On disposals Transfers between classes Al 31 December 2025 217 98 407 250 972 43 191 251 102 400 253 1,006 Net book value Al 31 De￿mber 2025 3.594 36 19,509 13,572 36,711 Al 31 December 2024 3.628 19.352 13.034 36,017 Durham Diocesan Board of Finance IA company limited by guarantee} Notes to the financial statements Year ended 31 December 2025 21. Fixed asset investments Listed investments £000 Loans to Agricultural associates land £000 £000 Total £000 Cost or valuation At 1 January 2025 Addit'ons DispDsals Revaluations 33.592 29 3,413 37,034 (41 1521 11,5311 35,451 11.3511 32.241 11801 3.185 At 31 December 2025 25 Net book value Al 31 December 2025 32.241 25 3,185 35,451 Al 31 December 2024 33,592 29 3.413 37.034 Historic cost at 31 December 2025 26,482 25 394 26,901 Agricultural land held as investment properties The estimate of the value ol Glebe land and properb.es held as inve5trnents at the end of the year has been prepared by Savills on a Desk Top valuab.on as al 31 De￿mber 2025. Long temi loans The DDBF loaned £15,000 to Stirting Newall Trust for the installab.on of a new fire alaim system in 2021 with an additional loan of £10.000 being made during 2023. Both loans are repayable in annual instalmenls over 10 years wlh interest charged al 30A per annum. Subsidiary undèrtakings Unlisled investments are held al cost and relate to DOBF'S wholly owned subsidiary undertaking. The Diocese ol Durham Educational Trusl. a company limited by guarantee Icompar)y registration number 088165271. The Diocese of Durham Educational Trust was incotporaled in 2013 to provide the Diocese a vehicle lo manage ils education responsibilities. It was a dormant company %thich acted as a corporate member for a number of mulb. academy Irusls. but was wound up in January 2025. Joint venture The cornpany has a joint ventijre limited liability partnership with Newcast￿ Diocesan Education Board INDEBI. The entity. Joint Education Team LLP. ¢otnmenced trading on 1 Seplember 2023. 49 Durham Diocesan Board of Finance IA company Ilmlted by guarantee) Notes to the financial statements Year ended 31 December 2025 22. Debtors 2025 £000 2024 £000 Due after more than one year Church Buildings loan Church workers pension scheme surplus {5ee note 371 Equity share loan 140 451 134 725 117 134 345 Due within one year Chureh Buildings loans Church workers pension scheme surplus (see note 37} Other debtors Prepayrnenls and accrued income 257 1,408 112 1.780 2.505 176 126 648 993 Total The historic C051 of the equty share loan induded in loans reC￿Vable is £16,OOD {2024_' £16.0001. Current asset investments 2025 £000 2024 £000 Short temi inveslments 273 1,171 Creditors-. amounts falling due within one year 2025 £000 2024 £000 Tiade Creditors Other creditors Accruals and deferred income 230 166 18 1,968 2.152 641 875 £000 £000 Deferred income al 1 January Resources deferred during the year Amounts released frorn previous periods 1.897 1,116 1,897 11,3411 556 1.897 50 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 2S. Creditor5- amounts falling due after morethan one year 2025 £000 2024 £000 Loans 49 49 Loans included in creditois due in more than one year comprise £49.000 12024.. £49,000) owing to Church Commissioners ￿lating to propety purchased to house dergy spouses, which becomes repayable on sale of the propety once it fa115 vacant. Summary offunds Summary offunds- currentyear Balance at 31 Gainsl December (Losses) 2025 £000 £000 Balance at 1 January 2025 £000 Transfe inlout £0 Income Expenditvre Designated funds General funds Endowment funds Restricted funds 5.920 56.308 13.397 75.632 7,792 1.074 3.608 12,474 19.7841 161 {2,9821 112,7721 1,737 12,5861 11511 19161 14641 11,S311 5,514 53,874 14,408 73.803 Summary offunds- prioryear Balance at 31 December 2024 £000 Balance at 1 January 2024 £000 Transfers inlout £000 Gains1 {Lossesl £000 Income Expenditure £000 £000 {71 (9.7921 1141 13.2791 113.0921 Designated funds General funds Endowment funds Restricted funds 5,798 56,952 11,963 74,720 7,851 1.109 3.940 12.907 1.995 12.5591 564 68 820 209 1.097 5.920 56,308 13,397 75,632 51 Durham Diocesan Board of Finance IA company iimlied by guarantee) Notes to the financial statements Year ended 31 December 2025 27. Statement of funds - curre￿1 year Balance at 1 January 2025 Income Expenditure £000 £000 £￿)0 Balancé at 31 De¢ember 2025 Éooo Tr4nsfers Gain Inlloutl ILossesl £000 Designated funds Bequests Fund Unrestricted funds Geneial Restricted funds Parsonages Building Fur)d Durham Closed Schools Fund Pastoral Fund Minislry and Preordinalkjn Training Fund Lord Crewe's ChJity strateg￿ Development Fur•J Re50urGing Churches Stralegrc Deveb¥menlFuNI 11 £ommunitiès olHore Strategic Develowent lund 111-Tr3nsforrning Gr¢7wth Restruduring Fund- Renew318 Reform Durham Capacrty Fund Strategic Capa(ity Grant fund Strategi¢ Minislry Fund Archbishops, cOu￿J1 - Net Zefo Atchbish)ps' C￿Jnal - Cal to Fnjidullness Archbish)ps' Council - Buildir@ for hAissron Benefact Trust- Cultivate lundirKJ Archbishops. Counal ￿1¥In9 Adviser funding PeNS￿n surplus restr￿ed lund her 5,920 7.792 9.784 1,737 151 5,514 1.829 1701 1,811 1891 1,269 1301 13441 842 10.171 427 37 250 1371 13281 142 27 425 {4251 421 14211 372 13721 57 1621 325 325 25 (271 24 742 411 $2 1471 13 40 24 1247 461 737 247 13,397 3.608 229 2.982 20 464 678 14.408 849 Endowment funds PaFsonages Houses Fund Stipènds Capital Fund 19,322 491 36.986 S83 56.308 1.074 13131 2,273 12,5861 19.498 34,376 S3.874 916 19161 Total of funds 75.632 12.474 112.772 11,S311 52 Durham Diocesan Board of Finance IA company Ilmlted by guarantee) Notes to the financial statements Year ended 31 December 2025 27. Statement of funds {continuedl Bequests Fund This fund represents the balance from an anonymous donor during 2019 which the Board decided should be held within a separate designated fund lo support the diocesan priority of'challenging Poverty,. General fund The general fund is available for any purpose wthin the ¢)bjects of the Board. It is principally used for payrnenl of stipends, n81ion81 Insurance. pension contributions and housing costs of clergy and licensed lay-workers in parish ministry. 11 also provides the assets and liquidity for the DDBF lo carry out its objectives, inclLKling statutory compliance and administration of funds. Pa￿Onage$ Buildings fund The Paisonages Buildings fund is held by the DDBF to pay for repairs and maintenance of parsonage houses. This fund also holds the net proceeds from the sale of any previous parsonages which have been ring fenced for the wovision of a replacement parsonage as and when ne￿Sary. Durham Closed Schcx)Is Fund The Closèd Schools Improvements Fund reptesenls the pooled sale pr￿e￿$ of closed church schools in the Diocese in 3ccordan¢e with Sectyon 287121 of the Education Act 1993. The capital and income can be used for the building, extension and maintenance of church schools. The income alone can be spent on the managernenl and administration of church schools_ Pastoral Fund The pastoral a¢¢oLJnt includes the proceeds of redundant churches and parsonages and was sel up under the provisions of the Pastoral Measure 1983. The restricted purposes for which the account May be used are.. -to defray costs incurred for the purposes of the Measure or any scheme or order made under the Measure except for salartes of iegular diocesan employees -lo make loans or grants foi the provisB)n. restoration. improvement or ￿pair of churches and paisonage houses in Ihe DI0￿Se -other purposes of the Diocese or any benefi¢e or parish in ￿ Diocese -to make grants or loans lo any other Diocese -to transfer funds lo the dI0￿58n stipends fund income or caprtal accounts. Ministry and Preordination Training Fund This is a restricted ftjnd sel up to provide assistance for minÉstry and training. Lord Crewe s Charity Re51ricled Fund This ftjnd provkles support for netsssitous clergy and gives resources foi the mission and ministry of parishes in the most deprived parts of the Diocese stralegiG Development Fund- Resourcing Chu￿beS This national church funded project set up the first four Resourcing Churches in major population cenlres within the Diocese, and supports training of mintrslry experience volunteers. Strategic Development Fund- Communities of Hope This national church funded project is to develop Communtties of Hope. which are Christian small scale social enterprise projects in areas wrth high levels of swal deprivation. alongside fv40 further Resourcing Churches and ministry experience volunteers. Durham Diocesan Board of Finance IA cornpany limited by guarantee) Notes to the financial statements Year ended 31 December 2025 27. Ststsment of funds l¢ontinuedl strateg￿ DevebpThEnl Fund- Transfonnty￿ Growth This national church [￿dÈd pr(iÈct supports a Resourcing CIMJrch in 0￿1ngl0n and church planling activity across the 0￿￿Se. RestnJdiiring Fund The Churth Commissioners awarded the Otiese a one-otf 8110¢8tifyi lo allow thé Diocese to adapt to a iedwlK>n in hJnding resulting from the replacerneni <* Selective MbcatK)n by LoknEr IncThne communilies Funding. This thnd￿g ts reslrded as il M￿%1 te used in line wilh ￿ ajreed pLH MIS￿11£￿e0uS Restricte& Income Fu￿1 This reslricled fund relates lo grants receNed for ¢￿e off smaller admlies ￿ich have been made avaikbl8 lor specsfic restricted admties bmlhin the Diocese. Oufharn Cap8cJfy Fund This fund pmwdes support for the Dwjcese throu￿ the process of de¥Elopng a transformational strategy and missional Ilesl￿. SIrneg￿ Capacrfy Fund- Church ￿antIng Provides capacity lor the administralMJn and managemenl ol church ttsntingwithin the Ditxese. strale￿ Minislry Fiind Provides support to asy51 wlh funding the cur8les. Ar¢hDishops' Coiincil- Net Zero Awarded towards helping Ihe Oiocese work ￿d9 their r￿L zero ta￿et Ar¢hbishops' Councd- Caledlo FnirffuJne5S hcre3sing capaoly. regeneralK)n (4 parishes mission. missional ¢thap1aIr￿es ￿er￿fact Toist- Cuftwate FU￿ing lo sukwort Ihe Diocese's-cLI￿.wale. churd) planting stralegy. Ar¢hbshops' Ccxinol4ww Adv￿erFu￿1 Nsik)r￿1 churckn funding to provide di(￿San SUPFX)rt for parishes aroLnd generous gNing stewardship. Pension A fund holding the pension asset arising from the closure of the Church W4yker Defined Benefit Schème to be offset against fuiure staff pension liabilitie5. Olher gwanls rhis resiTiCteiJ fu￿ relates to grants whith supp)rt a ￿de rwge d Fwriècis related lo Ihe foul Diocesan priorities. Patsonage Hol￿e5 Fund The Pars0[￿ge Houses Fund represents Ihe value of Ihe benefice house5 {parsonagesl in the Dicttse after deductiig bans ￿l$landIng in respect of such houses. Durham Diocesan Board of Finance IA company Ilmited by guarantee) Notes to the financial statements Year ended 31 December 2025 27. Statement of funds Icontlnu¢dl Stipends Capital Fund The Stipends Capital Fund is govemed by the Diocesan Stipends Measure 1953_ The income of the fund ¢an only be used for clergy stipends but. since 1993. capital can be applied for improvements to parsonage houses. Transfers between fund$ Further details are given in note 30_ 55 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 27. Statement of funds Icontinuedl statstn¢nt ol fund$- prior year Balanc¢ al 1 January 2024 In¢ome Expendibjre £￿0 8klance at 31 DecÈm￿r 2024 000 Transfers G3in51 inlout ILossÈsl £000 £Tr)o Designated fund5 Eeoksts Unrestricted funds General Resliicted funds ParsMa9es Building Furd DJrtrn CloseLI S¢hx)ts FUN1 Pastoral Fu Ministry and Preordinabo Tr>ning FuThY LordCrewe'5Charity Strategic De￿lop￿ertt FuNJ- Resourong Chur¢Ves Restructurirrtj FLhryJ- Renvw31 & Rekjrm Strategrc DeVel￿rrEnt Fund11- Cofflmunit*s ofHwe Mis¢ Reshcted Fund IMi5C Initsne for prqectsl Durtw Capacity FuTrJ (Res￿led) Strategic C412aty Grant furKI Str8Ègic MiNstry FuTrJ strakgic Devel￿Mert FtThY- Tr￿s￿L￿rnation Gr(h¥th ctrbishJPS' coL￿¢11_ GIwtYJ Pdviser fur￿1n9 chbisVw3Ps' Council- Neizero Arcthishop¥ Counal- Calledto Fri￿￿￿￿s& per￿(3¢1 frust- C￿tivate luThSTrJ hislKP5 Counci- PA*kfir*J Misgon Penson restrKted knd Other S.796 7.851 19.7921 1.995 68 5.920 1.741 49 39 20 138 1.82g 12051 769 215 11741 9.028 146 142 1174} 134)) 340 142 27 14671 27 eiii l&Jl1 173 31 1271 177 131 57 131 1671 I4￿) 21x1 12CQI 24 P41 25 Ixji 25 13 8141 118 11(ts1 11XII 708 560 13.397 12 11.Sf3 Endowmenl funds Parwages HoLEes Futyj Sbtwd5 Ca￿1 Fund 19.652 37.2￿) .952 432 677 1.109 (7691 19.322 36.986 56.308 820 820 12.5591 Total of lund5 74.720 12.907 [33.1￿2} 1.097 75.632 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 Totsl return on investment Total Trust for Unapplied Stipend investment totsl return Capital fund 2025 202S 2025 £000 £000 £000 As at 1 January 2025 Movements in year location lo Irusl for investment Investment return.. dividends and interest Investment return.. gains on sale of property Investment return.. realised and unrealised gains and Ilossesl Addition of capital Transfer lo Parsonage Fund Less. costs of maintsining properties 10,518 26.468 36.986 1.685 11.6851 583 S83 {9161 19161 19561 19S61 141 1,2931 11,3171 12,6101 34.376 14} 12,0221 11,3171 13,3391 23,129 729 Unapplied lolal retum allocated to income Net movement in the year As at 31 December 2025 729 11.247 On 1 December 2022 the Trustees agteed to adopt a total retum approach to accounling lor the stipend capital endowments of the Diocese. The full deiails of policie5 adopted are Set out in the accounting policies in note 1. The date of adoption for the purposes of cakulaling the orKJinal value of the trust for investment was 1 January 1997, with all additional grfts since that dale added and inflation included to arrive at the value of the Trust for investrnenl as al 1 January 2023 On 31 December 2025 a proportion of the resulting unapplied toial return was allocated lo income for the year. as shown above. 57 Durham Diocesan Board of Finance IA cornpany limited by guarantee) Notes to the financial statements Year ended 31 December 2025 29. Analysis of net assets between funds Analysls of net assets belmen funds - Current year Unrestrlctsd Restricted Endowment funds funds funds 2025 202S 2025 £000 £000 £000 Total fund5 2025 £000 Tangible fixed assets Fixed asset investsHents Debtors due after more than one year Curient assets Ciedilors due within one year Ciedilors due in mole than one year 1,995 4,281 591 105 {9911 1.633 10,990 12471 1,452 116 33.083 20.180 36,711 35,451 345 2,220 18751 1491 663 1491 Total 5,981 13.944 53.878 73,803 Anatysis of net assets betsveen funds - prior year Unreslricled funds 2024 £000 Restricled Endowment funds funds 2024 2024 £000 £000 Total funds 2024 £000 Tangible fixed assets Fixed asset inveslrnenls Debtors due after more than one year Current assets Credrtor5 due wlhin one year Creditors due in mole than one year 1.965 4.286 591 38 1953) 1,665 9,177 133 3.621 (1.1991 32,387 23,571 36,017 37,034 725 4,057 12.1521 1491 398 1491 Total 5.927 13.397 56.308 75,632 58 Durham Diocesan Board of Finance IA cornpany limited by guardntee} Notes to the financial statements Year ended 31 December 2025 30. AnalysSs of slgnlfi¢ant transfers between funds Analysls of slgnlficant transfers between funds - current year Unrestricted Restricted Endovmient funds funds funds 2025 2025 2025 £1￿0 £000 £000 Totsl fund5 2025 £000 Transfer of Parsonage Houses to Pastoral Account Transfer of restricted Closed School fvnd to Unr&slri¢ted Transfer trom Stipends Capital to Parsonage Houses Transfer from Stipends Capitsl to Parsonage House5 Total Return transfer from Stipends Caprtal Total penS￿n transfer from Restricted lo Unreslricled funds Other transfers from Restrtcted to Unrestricted fund Total 1,269 11,2691 89 {89) 956 19561 11,3171 1.317 247 1247) 184} 1,737 12,5861 Analysis of signrficant transfers between funds- prior year Unrestricted fvnds 2024 £000 Restricted En￿o￿￿ent funds funds 2024 2024 £000 £000 Total funds 2024 £000 Transfer of Parsonage Houses to Pastoral Account Transfer of Schools funds from Restn"cted lo Unreslricted fund Total Return transfer from Stipends Caprtal 769 17691 105 1.790 12051 11,7901 Total 1.895 12,5591 Transfers from endowment funds of £1,269k represent transfers from the Parsonage Houses fund to reslri¢led funds following the sale of certain properties. accoiding to the lemis imposed on the endowed asset. 59 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 30. Analysls of signlflcant transfers between funds (continued) Transfer of £89k from the reslricled Durham closed sch¢)ols fund to unrestricted funds were made lo fund educational spend, in line wrth the terms of the restrictions. Transfer of £1,317k has been made from endowment funds to unresth.cled funds representing the allocation of unapplied lolal retums {see note 281. Transfer of £956k has been made from the Sbpend Capital fvnd to the Parsonage Houses fund within endowed funds. In addition. a transfer of £247k has been made from the restricted Church Workers Defined Benefit Scheme asset surplus to unrestricted funds following the diawdown of this balance against pension conlribulions. 31. Reconciliation of net movement in funds to net cash flow froTh operating activtties 2025 £000 11.8291 2024 £000 912 Net income for the year las per Statement of Financial Activities) Adjustments for: Depreciation charges Lossesllgainsl on invesbments Dniidends. interests and reftts from investments Decreasellincreasel in debt (Decreaselfincrease in ¢redilors Profil on sale of fixed assets 43 1,531 11,1341 1,512 11,2771 15311 43 11.0971 11.0961 11,1381 618 15431 Net cash used in operating activities 11,6851 12,3011 32. Analysis of cash and cash equNalents 2025 £000 2024 £000 Cash in hand Notice deposits Iless than 3 months) Total cash and cash equlvalents 273 1.299 1,572 1.171 1,106 2,277 60 Durham Diocesan Board of Finance IA company limited by guarantee) Notes to the financial statements Year ended 31 December 2025 33. Analysis of changes In net debt At1 January 2025 Cash flows £000 £000 At31 December 2025 £000 Cash at bank and in hand Debt due after 1 year Liquid investments 1.106 1491 1,171 2,228 193 1,299 {491 273 1,523 18981 17051 Operatlng lease commitments Al 31 December 2025 the charitsble company had commrtment5 to make future minimum lease payments under non-cancellable operating leases as follows.. 2025 £000 2024 £000 Not later than 1 year Later than 1 year and not later than 5 years 35. Pensions The DBF participates in two pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those ol the DBF and the other participating employers. One of these is the Church of England Funded Pensions Scheme for sts"pendiary ¢lergy. The other is the Church Workers Pensions Fund for lay staff. Church of England Funded Pensions Scheme Each participating Responsible B(yJy in the Church of ENJland Funded Pensions Scheme pays contributions at a common contribution rale applied lo pen5i0nable stipends. The scheme is considered lo be a mulb'_employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme's assets and liabililies to each specthc Responsible Body. and this means contributions are accounted for as if the S¢heme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are Contributions payable tOW2rds benefits and expenses accrued in that year. which were £765.000 in 2025 (2(r24." £853.000}. plus any figures arising trom contributions in resped of the Scheme's deficit Isee belowl. A valuation of the Scheme is carTie(l out once every three years. The 2021 valuation showed the Scheme to be fully tunded. The most recent Scheme valuation compleled was carried out al as 31 December 2024. and also showed the Scheme to be fulty funded- as such in 2025, the deficit contribution5 paid were £nil12024". £nil}_ 61 Durham Diocesan Board of Finance IA company limited by guardnteel Notes to the financial statements Year ended 31 December 2025 35. Pensions Icontinuedl The December 2024 valuab.on revèaled a surplus of £560m. based on assets of £2,570m and a funding target of £2.01 Om, assessed using the followng assumptsons". An average discount rate of 6.0% p_a.. RPI inflation of 3.40A p.a. land pension increases consistenl with this)., CPIH inflation in line wrth RPI less 0.7% pte 2030 moving to RPI with adjuslmenl from 2030 onwards., Increase in pensionable stipends in line with CPIH,. Mortality in ac¢ordan¢e with 90% of the S4NA L tables. vth allowance for improvernenls in mortality rates from 2017 in line wrth the CM12023 extended model with a long tem annual rate of improvement of 1.50/0, a smoothing parameter of 7. an initial addition to mortalty improvements of 0.5% pa and an allowance 2020 ar)d 2021 data of 20°h li.e. w- 20%) The 2024 valuation reflects the benefit improvements that the General syn￿ agreed in principle in Juty 2025 land confirmed in February 20261. Section 28.11A of FRS 102 requi￿$ agreed deficit recovery payments to be recognised as a liabTltty. However. as there were no deficit recovery payments from 1 January 2023 onwards, the balance sheet liabilty as al 31 December 2024 and 31 December 2025 is nil. Church Workers Penslon Fund DDBF parbcipates in the Defined Benefits Scheme secbon of CWPF for lay staff, which is now closed lo fvlure 8￿rual. The Scheme is administered by the Church of England Pensions Board. which holds the assets of the scheme separately from Ihose of the Employer and the othei participating employers. CVVPF has two sections". the Defined Benefits Scheme the Pension Builder Scheme, which has iwo Subsections". a. a deferred annuity section known as Pension Builder Classic, and b. a cash balance sedion known as Pen&on &Jilder 2014. Defined Benefits Scheme The Define