2022-12-31-accounts - The Truro Diocesan Board Of Finance Limited

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Company Registration No. 00049825 Charity No. 248330

THE TRURO DIOCESAN BOARD OF FINANCE LIMITED (LIMITED BY GUARANTEE)

FINANCIAL STATEMENTS

31 December 2022

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Contents	Page
Trustees Annual Report	1 - 15
Independent Audito	16 - 18
Statement of Financial Activities	19
Income and Expenditure Account	20
Balance Sheet	21
Cash Flow Statement	22
Notes to the Financial Statements	23 - 55

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

strengthen, and

1 Peter 5.10

The trustees of the Truro Diocesan Board of Finance (TDBF) continue to trust in the God of all grace, who calls us, and who is is God who sustains and strengthens us, and that by th

We identify four key headlines in this report:

firstly, the trustees remain committed to supporting strategic change
s made locally in each deanery;
secondly, income contributed by parishes to the Mission and Ministry Fund (MMF) failed to return to pre-pandemic levels, or to match commitments in deanery plans, although the persistent fall in MMF income over time does seem to have levelled out;
thirdly, the overall value of assets for which trustees are responsible continued to perform strongly, even in very challenging economic conditions; and

finally, the trustees continued to pursue a policy of increasing direct support for parish ministry.

Ongoing commitment to, and resourcing of, strategic change

Deanery plans describe the vision of local church leaders for the flourishing of the church in each place. All the deanery plans are now in place and have been approved by Episcopal College but progress to implementing those plans has been much slower than anticipated. The trustees remain committed to strategic change led through deanery planning and in 2022 continued to grow diocesan support for the implementation of those plans.

One key impact of the slower than expected implementation of plans has been delays to changes in patterns of ministry. At the end of 2022 we noted a larger than usual number of vacant clergy posts putting real pressure on local ministry in too many places. 2023 sees a record number of planned clergy appointments.

a clear strategic aim.

MMF income

The budget for MMF contributions from parishes in 2022 was largely based on expectations described in deanery plans. Although in the plans.

Whilst overall MMF contributions did not match the budget or levels described in deanery plans, the local picture was patchy with some deaneries and parishes performing far better than others.

Overall it is likely that the weak MMF income in 2022 was in part a consequence of planning uncertainty and delays in implementing the hoped for new patterns of ministry, along with an ongoing weakening of the local church following the pandemic which tended to accelerate earlier patterns of decline.

Value of assets

The Balance Sheet reveals that the overall value of the Board remains strong and even in a difficult year has again increased. This increase, and the increase in value shown on the Balance Sheet over time, is largely a consequence of the continuing strength of domestic property values in Cornwall. Simply put, houses in Cornwall have increased in value significantly and the Board own or oversee 130 of them.

As well as strong property values, the Glebe estate has shown surprising resilience although the yield on the largely agricultural estate remains relatively low.

Compared to property and agricultural land values, the value of investments in 2022 was more significantly impacted by wider economic and political turmoil. The decision to disinvest from fossil fuel assets, a decision that the trustees continue to support, did mean that the Board did not benefit from the strong performance of the fossil fuel extraction sectors. However, our infrastructure investments, including renewable projects, helped with the overall performance of the portfolio.

Increased focus on support for parish ministry

In 2022, reserves, along with some external funding, were used to enable a focus on supporting parish ministry, it included: pushing down on the MMF call to provide stability for parishes;
an increase in the level of stipend at, or above, the national average;
energy cost grants and energy mission grants being paid to parishes; and
resourcing of Church House based on deanery plans.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

This work continues in 2023.

The trustees, who are also the directors for the purposes of company law, present their annual report together with the audited financial statements for the year ended 31 December 2022.

The directors / trustees are one and the same and in signing as trustees they are also signing the capacity as directors.

report sections in their

This combined report satisfies the legal requirements for:

mpany; and

Legal Objects

The overall objects of the TDBF are to promote the work of the Church of England in the Diocese of Truro and to act as a good steward of the resources entrusted to it.

The principal objects set out in the charitable

to promote and assist the work, objects and purposes of the Church of England for the advancement of the Christian religion in the Diocese of Truro, and in particular to organise and provide funds in aid of the work of the Church including:

training for ministry;
maintenance and financial support and assistance of ministry;
provision of pensions for the clergy and for lay workers;
overseeing the various properties used by the wider church, including churches, church halls, clergy houses and other buildings;
providing religious education through Church of England schools and colleges as well as elsewhere; and
o financing the diocesan and central organisation;

The Truro Diocesan Board of Finance has the following statutory responsibilities:

the management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976;

the repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972; the management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education Measure 2020;
the custodian of permanent endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956.

The strategic priorities of the charitable company are established by the Diocesan Synod in communication with Deanery Synods, PCCs, and the Bishop of Truro (in respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the church nationally.

Vision, Aims and Objectives

The

is a theology and strategy of diocesan mission and ministry and it describes priorities and commitments for the

diocese:

celebrating children and young people;

embracing an innovative and pioneering culture; confident in our calling;
strong international links; rejoicing in the generosity of God;
serve the poor; and
care for the earth.

A Diocesan plan is in the process of being prepared which describes the priorities for the diocese in implementing the vision for a fruitful and sustainable future described in the d renewal designed to bring fruitfulness and sustainability and will include the following:

ministry planning for the next 5-10 years;

implementation support for deanery plans; Rural Deans support;

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Vision, Aims and Objectives (continued)

School chaplaincy project;

Church buildings; and
Small churches strategy.

Activities and achievements during the year

Key strategic decisions taken by trustees in 2022 were:

to align the governance and leadership of Transforming Mission, On the Way deanery planning, the use of LICF and large mission funding under one portfolio using the disciplines of project management. The decision led to the establishment of the Board for Change and Renewal with the Director role and staffing to support it; approval of work towards achieving Carbon Net Zero in the environment strategy;
to establish a new Mission and Pastoral Committee;
to approve consultation on and then implementation of the 2023 budget which increased support for parishes by protecting the 2023 MMF call from large inflationary pressures for three years as well as committing to a review of the MMF formula, with the change applying from 2026;
to allocate financial support to parishes, clergy, and lay staff in response to energy cost inflation; and approval of proposals to move the base for Church House staff to the Old Cathedral School in Truro.

the framework of fruitfulness and sustainability. Next Steps On the Way is the process for implementing the diocesan and deanery plans, at local levels this work is being carried out by Deanery Implementation Teams. This is a huge challenge with the level and pace of change being felt across the whole diocese. The Board for Change and Renewal which is monitoring this work meets regularly to help ensure risks are minimised.

As part of the On the Way work the deaneries explored how the Lowest Income Communities (LICF) funding can be used differently within the diocese to ensure that the communities that experience poverty have genuine engagement in how money that relates to their community is used. This change is now being embedded as part of the implementation process.

The charitable company continued to support significant investment in Transforming Mission (TM) across five local projects.

Delays in some deanery plans being developed led to continued delays in the management of the housing stock which resulted in the level of surplus housing continuing to be unsustainably high (and reduced rental income). Now that all the deanery plans disposed of. The management also includes high level plans and costings for each property to enable the Carbon Net Zero ambition to be achieved. More detailed work is now being carried out to ensure the works are realistic from both planning and budgeting perspectives.

During 2022 work continued on reducing the costs of the shared services at Church House by £250k, the commitment made as part of the work on moving towards a balanced operating budget. A formal staff redundancy process was carried out which resulted in two posts being made redundant. The savings from this along with the other work carried out led to the budget savings being achieved. This is undoubtedly affecting the ongoing level of support the diocese can provide to parishes and every effort is being made to minimise the impact of this.

The provision of PCC energy grants and energy mission funding was achieved in late 2022, and has continued into 2023, in response to the energy cost crisis. In 2022 nearly £450k was distributed to more than 180 parishes, £269k of this was funded by the Archbishops Council with the remainder coming from TDBF reserves.

There had been a previous ambition to achieve a balanced operating budget for 2023 but with such complex finances the definition of what constitutes an operating budget kept changing and it was decided to focus on strong financial management alongside the commitment to use more of the T to support the wider diocese. An Assets Strategy has been produced in late 2022 and describes how the priorities in The Saints Way and the Diocesan Plan for Change and Renewal will be turned into action. This details the commitment to use a significant amount of reserves to support the churches and people of the diocese.

Public benefit

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

providing facilities for public worship, pastoral care and spiritual, moral and intellectual development, both for its members and for anyone who wishes to benefit from what the Church offers; and
promoting Christian values, and service by members of the Church in and to their communities, to the benefit of individuals and society as a whole.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Public benefit (continued)

particularly in the Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Truro Diocesan Board of Finance .

The Christian Presence

The charitable company endeavours to maintain a Christian presence in every community. Clergy form a central part in the life of churches in the Diocese of Truro and carry out important roles in communities.

While the Truro Diocesan Board of Finance is responsible for funding of clergy stipend costs, the national clergy payroll is s of stipendiary clergy deployed in the diocese. Caring for the clergy, curates, readers, local worship leaders and local pastoral ministers in the diocese is a priority of the Truro Diocesan Board of Finance and ministry costs represent by far its largest financial commitment.

Altogether the diocese has, as at 31 December, the following people involved in authorised ministry. There was a higher than usual level of vacancies at the end of 2022:

Stipendiary priests Self-supporting priests Stipendiary curates Self-supporting curates Readers Priests with Permission to Officiate (incl retired and non-retired) Local Worship Leaders Local Pastoral Ministers	2022 54 10 6 16 15 88 148 260 223	2021
		60 12 4 18 11 101 143 255 246

Work with schools

standards in schools s has continued to focus on this. The DBE does this work by promoting the Church of England The ambition and the vision are for all schools in Cornwall, including, but not confined to, the 43 Church of England schools. We oversaw the closure of one Church of England school in the diocese, but work continues to re-open this site for education provision in a new and exciting way for the most vulnerable children and young people of our diocese.

Work focusses on the areas of leadership and governance and is broad, including the development of important relationships in system leadership in support of our schools. Funding has been made available for the professional development of teachers and school leaders through a range of support including post graduate Masters level study with Marjon University Cornwall and professional qualifications via the Church of England Foundation for Educational Leadership. Support has been given to teacher development in the delivery of high quality religious education and for the delivery of Understanding Christianity training for teachers from all schools across the diocese.

This year has seen secondments to the team leading on school facing work and network development. This has included support for head teachers and Early Career Teachers across the diocese and in providing extensive governance support and guidance. The Diocesan Director of Education (DDE) gives ongoing support and guidance to heads and trusts, as well as linking to resources from the national DDE network and lobbying as the voice of schools locally, regionally and nationally.

Volunteers

The diocese continues to remain heavily dependent on the huge number of people involved in church activities at parish, deanery and diocesan level. We believe that the number of active volunteers (or volunteer hours) given to the mission and ministry of the church is a key indicator of the health of a church. The service provided to a community through church volunteering also has a si ly values the considerable time given by all the committee members across the diocese in pursuit of the mission of the diocese.

Plans for the future

At the heart of our planning is an enduring commitment to the parishes and churches of the diocese. We continue to support stipendiary ordained ministry as well as discerning and growing other patterns of service and mission.

The Diocesan Plan for Change and Renewal and the Assets Strategy will be the key strategic documents to ensure the assets of the TDBF are used as effectively as possible for the fruitfulness and sustainability of the wider diocese.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Financial Review

Financial performance

The SOFA for the year shows total income of £7,261k (2021: £6,856k) and total expenditure of £8,184k (2021: £7,527k), resulting in net expenditure of £923k (2021: £671k).

The increase in income of £405k is predominantly due to £312k more funding received from Archbishops Council along with £71k higher investment income and £27k more MMF. Realised gains on disposal of assets of £80k was £79k higher than in 2021 but this was offset by lower income from other activities of £73k which is mainly due to reduced rent from Parsonage houses of £61k.

The MMF contributions given by parishes to fund the ministry costs of the diocese remain the main source of income for the diocese. In 2022 this income increased by £27k to £3,074k (2021: £3,047k). The MMF collection rate marginally improved to 67.57%, from 66.69% in the previous year. This still represents the lowest contribution rate of all the dioceses in the Church of England.

nt received from parishes in the form of MMF. The breakdown of the different funding streams received can be seen in note 3. In 2022 £269k was received to pass on to the parishes to assist with the energy cost challenges being faced.

Expenditure increased by £657k. This is mainly due to resourcing ministry costing £222k more in 2022 when compared to 2021, with support for ministry and mission costing £358k more and expenditure on education costing £87k more.

Within the resourcing ministry heading is the budget for property maintenance which was increased, and spent, in 2022, by £337k. This increase in spend was offset by a reduction in clergy pension contributions of £88k as the pension scheme became fully funded and contributions were reduced as no deficit element needs to be paid anymore. See note 28 for more information.

The increase in support for ministry and mission spend is due to an increase in grants of nearly £500k, which were paid to parishes and clergy mainly to assist with the increased energy costs. These grants were funded from the £269k received from the Archb This increase in spend was offset by a reduction in the provisions for loans of £130k.

The property market in Cornwall was strong again during 2022 which resulted in an 11.0% increase in the value of the property portfolio during the year. This equated to an unrealised gain of £4.5m.

This was offset in part by a decrease in the value of investments held with an unrealised loss of £2.1m, being made up of a £1.7m unrealised gain on glebe and a £3.8m unrealised loss on listed and unlisted investments.

This net gain resulted in the total fund balances again increasing from £113,748k to £115,536k.

Significant property transactions

In 2022 TDBF sold one property, which was surplus to requirements, for net proceeds of £462k and purchased one property for £543k.

The TDBF policy continues to be:

to replace unsuitable properties;

to accommodate the changing geographical deployment of clergy within the diocese; and

to realise development potential in some properties, thereby using our resources more effectively for the ministry of the church.

Work on this strategy will continue as the deanery plans are implemented as part of the Next Steps On the Way work.

Balance Sheet position

The net assets at the balance sheet date totalled £115,536k (2021: £113,748k). This includes properties totalling £62,882k (2021: £58,207k), which are mainly used to house the stipendiary clergy. Much of the remainder of the assets shown in the balance sheet are held in restricted and endowment funds and cannot necessarily be used for the general purposes of the TDBF.

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

Reserves Policy

Free reserves

Taking into account the continuing level of change in housing, MMF contribution levels, projected operating results and our the following reserves:

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Reserves Policy (continued)

Working Capital Bridging loan for replacing parsonages Provision for covering any unexpected deficit Additional working capital for regular housing maintenance and epairs Funding any future developments arising from decisions taken at the BDC Loans to PCCs Designated Funds Diocesan Pastoral Account - Benefice Accounts Total	General Fund £ Designated Funds £ Pastoral Account £ Total £ 700k - - 700k - - 1,100k 1,100k 500k - - 500k - - 200k 200k 100k - - 100k 400k - - 400k - 13,280 - 13,280k - - 3,300k 3,300k 1,700k 13,280k 4,600k 19,580k

As at 31 December 2022 the amount of readily realisable assets in the General Fund required under the policy is £1,700k (2021: £1,700k), as per the table above. Actual free reserves as at 31 December 2022 amounted to £1,544k (2021: £1,924k) which is slightly below the target amount. This is being monitored and is expected to increase above the target level as surplus Board properties are sold in 2023.

Designated funds

The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed on an annual basis and returned to the General Fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. A description of each fund, together with the intended use of the reserve, is set out in note 24. At 31 December 2022 total designated reserves were £15,006k (2021: £13,986k).

Restricted and endowment funds

As set out in note 24 TDBF holds and administers a number of restricted and endowment funds. As at 31 December 2022 restricted funds totalled £10,883k (2021: £13,571k) and endowment funds totalled £88,102 (2021: £84,268). None is available for the general purposes of the TDBF. At the end of the year, the amount of the Pastoral Account that must be ring-fenced pending proposed pastoral reorganisations amounted to £3,311k (2021: £4,033k).

Fundraising Activities

The charity undertakes very limited fundraising activities directly with individuals. The majority of the T other charitable entities. The TDBF does not use third party professional fundraisers and did not receive any complaints about its fundraising practices during 2022.

Investment policies

Under the Articles of Association, the charitable company has the power to make any investment which the Trustees see fit. The Investment Management Committee oversees the management of the charitable land and buildings which are the specific responsibility of the Glebe Committee). The Investment Policy and Principles Statement sets out a practical framework of guidelines and conditions within which the investments shall be administered and was updated in January 2023.

It is expected that an ethical approach is adopted at all times: broadly this encompasses the objectives of The Church of England s Ethical Investment Advisory Group, the Diocesan Environmental Policy and more recently the C net zero by 2030. The overriding objective is to support the mission of the Church in the diocese through a portfolio that aligns strongly with the d ial and Governance (ESG) values. The priorities are the maintenance of capital in real terms, together with a sustainable and growing level of distributions. The investments are to be managed on a total return basis. The TDBF is able to take a very long term view in investment terms, accepting volatility of capital in the short term. The resulting tolerance of risk and the ability to take the long view imply an acceptance of exposure to equities, the belief being that this asset class is likely to provide the best overall returns over the envisaged timescale, as well as to keep pace with inflation. Other asset classes are included to moderate risk and protect income flows.

The Committee continues to believe that it is prudent to rely on external fund managers (particularly CCLA) in order to obtain the appropriate degree of diversification and to ensure adherence to our ethical criteria. The Committee is very sensitive to the effect of charges on investment performance, as well as being aware that it lacks the resources to manage the investments itself. Use

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Investment policies (continued)

of specialist charity funds ensures that the appropriate level of expertise is employed at a reasonable cost. The Investment Management Committee is permitted to consider all authorised managers and types of fund, subject to appropriate due diligence.

There were no changes to the portfolio during the year. Inevitably the investments were affected by the difficulties that confronted all global markets. There were no obvious shelters available other than to re-engage with the fossil fuel sector and that was considered not to be an option as it would go against the investment policy.

At present it is estimated that just over 10% of the portfolio is invested in renewable funds or projects. During the year a process started to try and calculate the carbon footprint of the TDBF portfolio. It has proved quite challenging to obtain data and work continues so that progress to Net Zero 2030 can be monitored.

CCLA, one of the external fund managers, offers the Supporting Church Investors scheme which the Committee took advantage of in 2022. This involved CCLA reviewing the investments assets held by the TDBF, along with the other assets held, to report on whether they considered the TDBF to be well diversified and therefore enabling the best return on the assets. No changes to the portfolio were recommended. CCLA did however recommend that an alternative benchmark, ARC Steady Growth Index, is used as it is considered to be more suitable to the TDBF portfolio. This will be adopted for 2023. The report also included a reminder it is currently achievable or desirable for investment portfolios. They encourage the TDBF to join the National Investment Bodies in their ambition to hit Net Zero portfolio emissions no later than 2050.

Investments are held in two of the CBF Church of England Funds, representing 62.7% of the total value of the charitable investments of £29,238k (excluding Glebe) at 31 December 2022. The remaining 37.3% are held in listed investments (see note 19).

The Investment Management Committee has adopted an Industry standard benchmark, the MSCI PIMFA (formerly WMA) Balanced Index for performance comparisons. The benchmark fell by 10.19% in capital terms in 2022 and the TDBF combined portfolio (excluding glebe investments) fell by 11.6% in the same period. The yield on the portfolio was 3.2%.

managers continue to focus on companies and sectors where there are good prospects for the medium to long term, whilst ensuring a dependable income flow in the short term. The Committee believe the portfolio is well positioned to benefit when the current trends are reversed and a less febrile environment returns.

comfortable with the asset allocation

of the portfolio.

Total Returns

On 28 March 2018, the TDBF, as the sole trustee of the Diocese of Truro Stipends Fund Capital Account (SCA), made a resolution under section 104A(2) of the Charities Act 2011 to adopt a total return on investment approach to the SCA permanent endowment fund. On 28 March 2018, the TDBF identified the value of the gifts of permanent endowment as at 31 December 1999, the earliest date with reliable valuations. This set the baseline value of the gift component of the endowment to which any subsequent gifts of endowment are added. The difference between the total of endowment funds as at 28 March 2018 and the inflation-indexed baseline value of the gift component represented the opening balance of unapplied total return.

The power of total return permits the TDBF to invest permanently endowed funds to maximise total return and to apply an appropriate portion of the unapplied total return to income each year.

Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains invested as part of the permanent endowment. The power allows the TDBF to decide in each year how much of the unapplied total return is transferred to income funds and so available for expenditure. The TDBF decided to make a transfer from unapplied total return to unrestricted income funds in both 2021 and 2022. In making these decisions they took account of the investment climate, the return on investment for the year and the income needs of the charity.

In deciding on the amount to transfer to income funds, Mike Sturgess, Chair of the TDBF, as to the likely investment trends and the sustainability of the investment fund after considering various levels of transfer to income.

Grant making policy

The Memorandum of Association explicitly permits the TDBF to make grants in pursuance of its objects, and the nature of grants made in 2022 is indicated in note 12.

The Funds for Mission panel consider grant applications under £5,000 and the Senior Leadership Team consider applications above this level.

Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Grant making policy (continued)

Grants are paid to other charitable projects which appear to the TDBF to support the furtherance of the charitable objects.

Principal risks and uncertainties

identification, mitigation and or management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is subject to review by the Bishop lar basis, with the responsibility for delivery of the mitigation strategies identified being delegated to the Finance, Assets and Risk (FAR) Committee and the Diocesan Secretary.

The risk managers meet quarterly to discuss the ongoing development of the process and each register is reviewed in detail by the FAR Committee annually on a rotating schedule.

The risk register identifies the following high risk areas where the residual likelihood of the risk and the residual major or critical

almost certain

Finance: MMF income insufficient to meet financial commitments. o monthly monitoring by Finance department ; o regular detailed MMF management information communicated to deaneries and parishes, with proactive approach and contact to those parishes not making MMF contributions and conversations encouraged within deaneries about MMF contribution rates and cost of ministry;
the Next Steps On the Way process works with deaneries to enable fruitfulness and sustainability for parishes;
o annual budgeting;
effective use of reserves, for example funds released by the Total Returns mechanism;
prudent reserves policy, which is reviewed annually;
Generous Giving Advisors help nurture and grow a culture of giving generously including promoting Parish Giving Scheme;
liaising closely with Church Commissioners and other national bodies about national strategy; and
o The Saints Way to lead the vision for the diocese.
Ministry: transitions not completed effectively and efficiently.
well trained Transitions Advisers allocated to work with Archdeacons, Rural Deans and local leaders to support development of future vision and plans for benefice;
support provided to parishes with drafting Profile, and with recruitment process; and
follow up with new clergy and parish team following appointment to gain feedback to improve service.
Property: funding constraints. MMF and rental income falls placing considerable constraint on property budget which impacts on property services.
budget and expenditure monitoring by Finance Department with monthly review at Property Management Committee; and
formal decision making process and financial regulations providing a control over spending.
Safeguarding: failure to safeguard, care and nurture children and vulnerable adults within our church community, due to lack of PCC capacity and/or resources.
implementation of national and local policies and practice guidance;
Parish Priest and Parish Safeguarding Officers have defined responsibilities for safeguarding;
Diocesan Safeguarding Team in place to provide support, guidance and training;
interim control measures required during Covid-19, increased guidance and advice
training the Diocesan Safeguarding trainer and with a formal reporting structure.

Safeguarding: non-compliant management of data including paper and electronic files, storage and sharing.

Paper files locked in secure filing cabinet;
Computers encrypted;
Electronic case files held in secure separate drive on server;
Data sharing protocols in place;
Staff trained in data protection practice and up to date with regulations; and
o Separate office for safeguarding staff.

TM people: staff resignations.

Monthly meetings between TM Project Manager and Director and TM leads.

Next Steps On the Way: insufficient central resource to cope with the significant changes within deaneries.

Monitored by Programme Board for Change and Renewal; and
Director of Change and Renewal and supporting team now in place to help with the changes.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Structure and Governance

Summary Information about the Structure of the Church of England

The Diocese of Truro is part of the wider Church of England, and any description of the governance structure of the Truro Diocese and the Truro Diocesan Board of Finance must be set within the context of the structure of the Church of England itself.

The Church of England is organised as two provinces; each led by an archbishop (Canterbury for the Southern Province and York for the Northern). Each province comprises dioceses of which there are 42 in England.

Each diocese in England is divided into benefices, which comprises a number of parishes, although some larger parishes can be a benefice in their own right. Each benefice is overseen by a priest (usually called a vicar, rector or priest in charge). From ancient uped together into deaneries, with there being twelve deaneries in the Diocese of Truro.

His Majesty the King, who is the Supreme Governor of the Church of England, appoints archbishops, bishops and deans of cathedrals on the advice of the Prime Minister. The two archbishops and 24 senior bishops sit in the House of Lords.

The Church of England is episcopally-led (there are about 120 bishops, including Diocesan Bishops and Assistant and Suffragan Bishops). It is governed by General Synod as its legislative and deliberative body at national level, making decisions on matters of doctrine, the holding of church services and relations with other churches. General Synod passes measures which, if accepted by Parliament, have the effect of Acts of Parliament. It is made up of three groups or houses of members: the Houses of Bishops, of Clergy and of Laity, and meets in London or York at least twice a year to consider legislation for the broader good of the Church.

The National Church Institutions

the three National Church Institutions (NCIs).

-ordinate, promote, aid and further the mission of the Church of England. Its task is to give a clear sense of direction to the Church nationally and support the Church locally by acting as a policy discussion forum.

The Church Commissioners manage the historic assets of the Church of England, spending most of their income on pensions for the clergy. The costs of episcopal administration through the diocesan and suffragan bishops are met by the Church Commissioners.

authority, to administer the pension scheme for the clergy. Subsequently it has been given wider powers, in respect of discretionary benefits and accommodation both for those retired from stipendiary ministry and for widow(er)s of those who have served in that ministry, and to administer pension schemes for lay employees of Church organisations.

The Church of England Pensions Board (the Pensions Board), which reports to the General Synod, is trustee of a number of pension funds and charitable funds. Whilst the Church has drawn together under the Pensions Board its central responsibilities for retirement welfare, the Pensions Board works in close coCommissioners.

The Diocese of Truro

The statutory governing body of the diocese is the Diocesan Synod. It consists of the House of Bishops, the House of Clergy and the House of Laity, with broadly equal numbers of clergy and lay people providing representation across the diocese. Its role is to:

consider matters affecting the Church of England in the diocese;
act as a forum for debate of Christian opinion on matters of religious or public interest; advise the bishop when requested;
deal with matters referred by General Synod; and provide for the financing of the diocese.

The Diocese of Truro was created in 1877. It covers the whole of the county of Cornwall and the Isles of Scilly, plus two churches in Devon.

Archdeaconries, Deaneries, Benefices and Parishes

The whole of the diocese is divided into parishes which for administrative and governance purposes is generally the smallest pastoral area in the Church of England. Typically, each parish has one parish church. In total there are 214 parishes in the diocese.

The ecclesiastical parish is governed by a Parochial Church Council or PCC, which is made up of the incumbent as chair, the

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Archdeaconries, Deaneries, Benefices and Parishes (continued)

registration with the Charity Commission, apart from those PCCs with annual gross incomes exceeding £100,000 which are required to register under the provisions of the Charities Act 2011. Except where shown, the transactions of PCCs do not form part of these financial statements. Financial statements of an individual PCC can be obtained from the relevant PCC treasurer.

A benefice is a parish or group of parishes served by an incumbent who typically receives a stipend and the benefit of free occupation in the parsonage house from the diocese for carrying out spiritual duties.

A deanery is a group of parishes over which a rural dean has oversight and an archdeaconry is a group of deaneries for which an archdeacon is responsible. The Diocese of Truro has two archdeaconries, each with six deaneries, the archdeaconry of Cornwall in the west, and of Bodmin in the east of the diocese.

The diocese is then the principal pastoral and in turn financial and administrative resource of the Church of England, encompassing the two archdeaconries under the spiritual leadership of the Diocesan Bishop.

Deanery Synods

There are 12 deaneries in the diocese, each with its own Deanery Synod. Each Deanery Synod has two houses, laity and clergy, and the role of the synods is to:

respond to requests from General Synod;
give effect to the decisions made by the Diocesan Synod;
consider matters affecting the Church of England by drawing together the views of the parishes within the deanery; act as a channel of communication to express the views of parishes to Diocesan Synod and thence to General Synod and, conversely, to pass matters from General Synod and Diocesan Synod to the parishes; raise with Diocesan Synod such matters as it considers appropriate;
elect members of the deanery to the Diocesan Synod and of the diocese to General Synod; allocate the deanery MMF call between their parishes and report the allocation back to the Board; and develop a deanery plan for the mission of the Church in the deanery.

Diocesan Governance

The diocese is governed by Act of Parliament and Order in Council made in 1876. Its statutory governing body is the Diocesan Synod, which is an elected body with representation from all parts of the diocese. Membership consists of 14 ex officio members, including the Bishops and Archdeacons, 48 clergy members elected by the houses of clergy in Deanery Synods, 45 lay persons elected by the houses of laity in Deanery Synods, up to five persons who may be co-opted by each of the House of Clergy and the House of Laity and up to five ordained and five lay persons who may be nominated by the Diocesan Bishop. The Diocesan Synod meets three times a year.

The Truro Diocesan Board of Finance Limited, was formed to manage the financial affairs and hold the assets of the diocese. It was incorporated on 23 October 1896 as a charitable company limited by guarantee (No. 00049825) and its governing documents are the Articles of Association. The charitable company is registered with the Charity Commission (No. 248330).

Every member of Diocesan Synod is a member of the charitable company, for company law purposes, and has a personal liability limited to £10 under their guarantee as company members in the event of its being wound up. The consists of the mittee who are also the trustees of the charitable company under law.

Bi

Council:

planning the business of Synod including the preparation of agendas and papers; initiation of proposals for action by the Diocesan Synod and provision of policy advice; transacting the business of the Diocesan Synod when not in session; management of the funds and property of the diocese; preparation of annual estimates of expenditure; advising on action needed to raise the income necessary to finance expenditure;
funds against estimates of expenditure approved by
Diocesan Synod;
advising Diocesan Synod of the financial aspects of its policy and on any other matters referred to it; appointing members of committees or nominating members for election to committees, subject to the directions of Diocesan Synod; and
carrying out any other functions delegated by Diocesan Synod.

The charitable company has responsibility for the day-to-day financial management of the diocese.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Bi

Also

Parsonages Board, which is responsible for determining policy and making major decisions concerning the management of parsonage houses in each benefice, including setting the policy for buying, repairing, maintaining and disposing of all parsonage houses and houses owned by the charitable company.
Glebe Committee, which is responsible for determining policy and making major decisions concerning the management of glebe property and investments for the benefit of the Diocesan Stipends fund of the diocese.
Diocesan Mission and Pastoral Committee, which is responsible for reviewing the arrangements for pastoral supervision and care in the diocese, including the deployment of clergy, and having regard for the worship, mission and community as central to the life and work of the Church of England.

rship is shown in the Administrative section on pages 13 and 14. some of whom Council, but they are not directors of the charitable company for the purposes of company law.

one year, but may stand for re-election thereafter.

Report and

the financial statements, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including Diocesan Council is required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP (FRS 102);
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

disclose with reasonable accuracy at

any time the financial position of the charitable company and to enable it to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

luded

in the Diocese .

Statement of disclosure to auditor

So far as each member of charitable each member of the they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Finance, Assets and Risk Committee

The trustees of the charitable company have formed a committee consisting of the Chair of the Truro Diocesan Board of Finance, members of the BDC, and members co-opted on a skills basis, and has delegated to it such of its powers and responsibilities at it thinks necessary from time to time.

Trustee recruitment, selection, induction and training

Trustees are recruited through a mixture of ex-officio positions, elections and nominations.

All trustees receive an induction pack and the first meeting of each triennium is largely given over to induction briefings and discussions. Training opportunities are offered, around safeguarding and risk management. Further development resources are

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Trustee recruitment, selection, induction and training (continued)

made available through the life of the triennium. There is also a focus on the process of safer recruitment ensuring that the organisation exercises safer recruitment at all levels across the board.

Delegation of day to day delivery

Finance, Assets and Risk Committee rely upon the Diocesan Secretary and his colleagues for the delivery of the day to day activities of the charitable company. The Diocesan Secretary is given specific and general delegated authority to deliver the business of the Truro Diocesan Board of Finance in accordance with the policies framed by the Trustees.

Remuneration of key management personnel

Emoluments of key management personnel are determined by the Remuneration Committee, under delegated authority from the The Committee obtains reliable up-to date information about remuneration in other organisations of comparable scale and nature.

Funds held as Custodian Trustee

The Truro Diocesan Board of Finance is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the Truro Diocesan means of a separate accounting system. Further details of financial trust assets, whose market value amounted to £4.9m at 31 December 2022 (2021: £5.5m), are available from the Truro Diocesan Board of Finance on request, and are summarised in note 30. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by the Truro

Funds held on behalf of schools

The Board of Education is a statutory committee within the Truro Diocesan Board of Finance. Under the Diocesan Board of Education Measure 2020, it is required:

to promote or assist in the promotion of education in the diocese, being education which is consistent with the faith and practice of the Church of England.
The Board therefore has a vision of education that derives from the Christian faith;
Its responsibilities extend to the whole of the diocese, and not just within church schools;
Indeed, its responsibilities apply to more than just schools and includes adult education;
to promote or assist in the promotion of religious education and religious worship in schools in the diocese;
Again, this applies to the whole of the diocese, and not just to church schools;
to promote or assist in the promotion of church schools in the diocese and in particular to advise the governors of such schools and trustees of church educational endowments on any matter affecting church schools in the diocese; to promote cooperation between the Board of Education and those concerned on any matter affecting church schools in the diocese.

The charitable company administers Devolved Formula Capital (DFC) grants for the d urch schools. At 31 December 2022, it held £248,918 (2021: £194,412) in designated bank accounts separate from those of the charitable company.

Related parties

General Synod, Church Commissioners

The charitable company has to comply with Measures passed by the General Synod of the Church of England and is required to e Diocesan and Suffragan Bishops are borne by the Church Commissioners and are therefore not reflected in these financial statements.

Parochial Church Councils (PCCs)

The charitable company is required by Measure to be custodian trustee in relation to PCC property, but it has no control over PCCs, which are independent charities. The accounts of PCCs and deaneries do not form part of these financial statements.

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

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

The Cathedral

Truro Cathedral is the mother church of the diocese and legally is constituted as a separate charity. and financial statements may be obtained from The Cathedral Office, The Old Cathedral School, Cathedral Close, Truro, TR1 2FQ.

Connected charities

The trustees consider the following to be a connected charity:

The Cornwall Retired Clergy, Widows of the Clergy and their Dependants Fund a registered charity which provides financial support to clergy or their dependents in particular financial need. Specifically, support may be provided to the spouse or the dependants of deceased clergy; to retired clergy or their dependants; or to the spouse or dependants of clergy from whom the spouse is separated or divorced.

Pensions

Stipendiary clergy, and the charitable charitable company before 1 February 2010, are members of the Church of England Funded Pensions Scheme and the Defined Benefits Scheme (DBS), part of the Church Workers Pension Fund, respectively. Both schemes provide defined retirement benefits and both are non-contributory except for lay staff who have joined the charitable company since 1 April 2004 who can have additional matching contributions up to 6% of their pensionable salaries if they make contributions.

On 1 February 2010, the charitable company closed its Defined Benefits Scheme to new lay staff who are instead eligible to join the Pension Builder Scheme (previously known as the Defined Contributions Scheme (DCS)), part of the Church Workers Pension Fund. This scheme is contributory and provides limited pension guarantees.

Further details about these schemes are contained in note 28 to the financial statements.

Appointment of solicitors

A resolution to reappoint Veale Wasbrough Wizards LLP as solicitors to the charitable company will be proposed at the Annual General Meeting.

Appointment of auditors

A resolution to reappoint Haysmacintyre LLP as auditors to the charitable company will be proposed at the Annual General Meeting.

Administrative Information

are the trustees of the Charity (for the purposes of charity law) and the directors of the Company (for the purposes of company law)) who served during the year and who were members at the date of this report were as follows:

Chairman (ex officio) Chairman of the Truro Diocesan Board of Mr M J Sturgess Finance (elected by the Members)

The Rt. Revd. P I Mounstephen

Ex officio The Rt. Revd. H Nelson The Very Revd. R C Bush (The Dean) (resigned 23 September 2022) The Revd. S Robinson (The Interim Dean) (appointed 8 December 2022) The Ven. P D Bryer (Archdeacon of Cornwall) The Ven. K A Betteridge (Archdeacon of Bodmin)

Elected by the relevant Houses of Diocesan Synod

Chair of the House of Clergy The Revd. C C McQuillen Wright Chair of the House of Laity Lay Canon Mr R J Perry Elected by Houses and Archdeaconry

Archdeaconry of Cornwall The Revd. B R Morgan Lundie (resigned 11 April 2022) Mr A P Hicks

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Archdeaconry of Bodmin
Bishop
s Appointments
Company Secretary
Registered Office
Telephone
Email address
Website
Company registration number
Charity registration number
Diocesan registrar
Solicitors
Auditors
Bankers
Insurers
Investment managers
Glebe estate manager
Property manager

The Revd. P R Holley
The Revd. R J Terry
The Revd. J W Foot (appointed 8 December 2022)
Mr R B Smith (appointed 8 December 2022)
Mrs C E Irwin
Dr A G Thompson
The Revd. T Folland
The Revd. S Morgan
Mrs A Corbett
The Revd. Canon S Cade
Church House
Woodlands Court
Truro Business Park
Threemilestone
Truro
TR4 9NH
01872-274351
info@truro.anglican.org
www.trurodiocese.org.uk
00049825 (England and Wales)
248330
Mr J Moule, Narrow Quay House, Narrow Quay, Bristol
Veale Wasbrough Vizards LLP, Narrow Quay House, Narrow Quay,
Bristol
Haysmacintyre LLP, 10 Queen Street Place, London
National Westminster Bank PLC, St Nicholas Street, Truro
Ecclesiastical Insurance Group PLC, Beaufort House, Brunswick Road,
Gloucester
NFU Mutual, Tiddington Road, Stratford upon Avon, Warwickshire
CCLA Investment Management Limited, Senator House, 85, Queen
Victoria Street, London
Walker Crips Investment Management Limited, Old Change House, 128
Queen Victoria Street, London
Sarasin & Partners LLP, Juxon House, 100 St Pauls Churchyard, London
Cazenove Capital, 1 London Wall Place, London
Savills, Lemon Street, Truro
Savills, Lemon Street, Truro

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

For the year ended 31 December 2022

Approval of this combined report

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by s.415A of the Companies Act 2006.

This report was approved by t

The Revd. Canon S Cade Company Secretary

26 April 2023 and was signed on its behalf by:

Mr M J Sturgess Chairman

Church House Woodlands Court Truro Business Park Threemilestone Truro TR4 9NH

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

DIOCESAN BOARD OF FINANCE LIMITED

(LIMITED BY GUARANTEE)

Opinion

We have audited the financial statements of The Truro Diocesan Board of Finance Limited for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the affairs as at 31 December 2022 and of the charitable company net movement in funds, including the income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant ical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

basis of accounting in the

preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast signif period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified report).

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

TO THE MEMBERS OF THE TRURO DIOCESAN BOARD OF FINANCE LIMITED (LIMITED BY GUARANTEE)

Matters on which we are required to report by exception (continued)

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

adequate accounting records have not been kept by the charitable company; or

the charitable company financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees for the financial statements

As e page 11), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding vulnerable beneficiaries, health and safety, and employment (including taxation), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and Church of England Measures.

s for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition. Audit procedures performed by the engagement team included:

inspecting correspondence with regulators and tax authorities;

discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions;

challenging assumptions and judgements made by management in their critical accounting estimates;

testing transfers between funds; and

performing cut-off testing in respect of revenue.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE TRURO DIOCESAN BOARD OF FINANCE LIMITED (LIMITED BY GUARANTEE)

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor Date: 11 May 2023

10 Queen Street Place London EC4R 1AG

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

TO THE MEMBERS OF THE TRURO DIOCESAN BOARD OF FINANCE LIMITED

(LIMITED BY GUARANTEE)

A further description of our responsibilities for the audit of the f website at: www.frc.org.uk/auditorsresponsibilities.

Use of our report

matters we ar

as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 26 April 2023

10 Queen Street Place London EC4R 1AG

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Statement of Financial Activities

For the year ended 31 December 2022

					Unrestricted	Restricted
					funds	funds	Endowments	2022	2021
				Notes	£	£	£	£	£
Income	and endowments from:			3
Donations:
Parish contributions					3,073,895	-	-	3,073,895	3,047,015
					922,686	1,023,098	-	1,945,784	1,633,783
Other					136,903	51,581	-	188,484	192,415
Charitable activities		statutory fees			259,772	-	-	259,772	266,471
Other activities				4	-	203,905	-	203,905	276,726
Investments				5	473,922	69,162	966,260	1,509,344	1,437,549
Other				6	36,379	-	43,392	79,771	1,437
					__	__	__	__	__
Total					4,903,557	1,347,746	1,009,652	7,260,955	6,855,396
Expenditure on:
Raising funds				7	137,039	-	165,582	302,621	299,188
Charitable activities				8	6,579,355	1,363,758	(61,245)	7,881,868	7,227,536
Other resources expended				9	-	-	-	-	-
					__	__	__	__	__
Total					6,716,394	1,363,758	104,337	8,184,489	7,526,724
Net incoming / (outgoing) resources before					(1,812,837)	(16,012)	905,315	(923,534)	(671,328)
realised gains / (losses)
Net (losses) / gains on			investment assets		(91,724)	(1,489,348)	(172,004)	(1,753,076)	5,840,699
					__	__	__	__	__
Net incoming / (outgoing) resources before					(1,904,561)	(1,505,360)	733,311	(2,676,610)	5,169,371
transfers
Transfer between funds				13	1,932,539	(1,182,408)	(750,131)	-	-
					__	__	__	__	__
Net income for the year					27,978	(2,687,768)	(16,820)	(2,676,610)	5,169,371
Unrealised gains on revaluation				14	1,180,654	-	3,283,511	4,464,165	7,304,980
					__	__	__	__	__
Net movement in funds				15	1,208,632	(2,687,768)	3,266,691	1,787,555	12,474,351
Fund balances at 1 January 2022					15,910,033	13,570,708	84,267,541	113,748,282	101,273,931
					__	__	__	__	__
Fund balances at 31		December 2022			17,118,665	10,882,940	87,534,232	115,535,837	113,748,282

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Income and Expenditure Account,

For the year ended 31 December 2022

Income and Expenditure Account, For the year ended 31 December 2022
	2021	2021
	£	£
Total incoming resources	6,251,303	5,988,724
Resources expended	(8,080,152)	(7,358,576)
	__	__
Operating deficit for the year	(1,828,849)	(1,369,852)
Net (losses) / gains on investments	(1,581,072)	1,704,372
	__	__
Net (expenditure) / income for the year	(3,409,921)	334,520
Other comprehensive income
Revaluation of fixed assets	1,180,654	1,673,000
Net assets transferred to / (from) endowments	750,131	(81,123)
	__	__
Total comprehensive (expenditure) / income	(1,479,136)	1,926,397

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

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Balance Sheet

at 31 December 2022

Balance Sheet at 31 December 2022
		2022	2021
	Notes	£	£
Fixed assets
Tangible assets	18	62,892,983	58,227,221
Investments	19	48,183,050	50,519,639
		__	__
		111,076,033	108,746,860
Current assets
Debtors	20	1,025,922	857,131
Cash at bank and in hand	21	4,348,303	5,373,572
		__	__
		5,374,225	6,230,703
Creditors: amounts falling due within one year
Other creditors	22	914,421	1,122,157
Net current assets		4,459,804	5,108,546
Total assets less current liabilities		115,535,837	113,855,406
Creditors: amounts falling due after more than	one year
Pension scheme liabilities	28	-	107,124
		__	__
Net assets		115,535,837	113,748,282
Funds employed
Unrestricted funds		17,118,665	15,910,033
Restricted funds		10,882,940	13,570,708
Expendable endowment
Parsonage Houses Fund		48,674,473	45,297,023
Permanent endowments
Stipends Fund Capital Account		38,859,759	38,970,518
		__	__
Total endowments		87,534,232	84,267,541
Total funds employed	24.4	115,535,837	113,748,282
Therevaluation reserveincluded in the above
funds is:	25	39,907,977	35,527,742

The cash flow statement on page 22 and the notes on pages 23 to 55 form part of these financial statements. These financial 26 April 2023 and signed on its behalf by:

M Sturgess Chairman

Company Registration No. 00049825

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Cash Flow Statement

For the year ended 31 December 2022

Cash Flow Statement For the year ended 31 December 2022
		2022		2021
	£	£	£	£
Net cash outflow from operating activities		(2,472,739)		(1,814,554)
Cash flows from investing activities
Dividends, interest and rent from investments	995,352		899,730
Proceeds from the sale of:
Tangible fixed assets	505,272		1,437
Fixed asset investments	600,565		12,534,770
Purchase of:
Tangible fixed assets for the use of the Board of Finance	(636,667)		(104,660)
Fixed asset investments	(17,052)		(11,849,493)
	__		__
Net cash provided by investing activities		1,447,470		1,481,784
		__		__
Change in cash and cash equivalents in the reporting		(1,025,269)		(332,770)
period
Cash and cash equivalents at 1 January 2022		5,373,572		5,706,342
		__		__
Cash and cash equivalents at 31 December 2022		4,348,303		5,373,572
Reconciliation of net movements in funds to net cash flow	from operating	activities
Net movement in funds for the year ended 31 December 2022		1,787,554		12,474,352
Adjustments for:
Depreciation charges		9,570		9,743
Dividends, interest and rent from investments		(995,353)		(899,730)
Interest paid		-		-
Profit on sale of functional assets		(79,771)		(1,437)
Gains on investments and revaluation of fixed assets		(2,711,089)		(13,145,679)
Increase in loans to parishes		19,500		(50,343)
Decrease/(increase) in debtors		(188,291)		22,738
Increase in creditors		(27,735)		46,317
Defined benefit pension costs less contributions payable		(289,124)		(271,515)
Defined benefit pension finance costs		2,000		1,000
		__		__
Net cash (used in) operating activities		(2,472,739)		(1,814,554)
Analysis of cash and cash equivalents
Cash in hand		4,348,303		5,373,572

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

1. Constitution

The charitable company is incorporated, in England and Wales (Company Registration Number 00049825), as limited by guarantee under the Companies Act 2006. The Registered office is Church House, Woodlands Court, Truro Business Park, Threemilestone, Truro, TR4 9NH. In the event of winding up, up to the permitted maximum 114 members of the charitable company are liable to contribute a sum not exceeding £10 per member towards the debts and liabilities of the charitable company and the costs, charges and expenses of winding up. At the year end there were 82 members.

2. Principal accounting policies

The charity meets the definition of a Public Benefit Entity in accordance with FRS102.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of freehold properties and investments (held as fixed assets), which are included at their market value at the balance sheet date.

The financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities (Second Edition, effective 1 January 2019, applicable accounting standards (FRS 102 The Financial reporting Standard applicable in the UK and Republic of Ireland ) and the Companies Act 2006.

The financial statements have been prepared in UK sterling currency and rounded to the nearest £1.

Going Concern

The trustees assess whether the use of the going concern is appropriate i.e. whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of the authorisation for issue of the financial statements and have concluded that the charitable company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charitable g concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The principal accounting policies and estimation techniques are as follows:

(a) Income

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

Parish contributions are recognised as income in the year in respect of which it is received.

Rents receivable is recognised as income in the period with respect to which it relates.

Interest and dividends are recognised as income when receivable.

Grants received which are subject to pre-conditions for entitlement specified by the donor which have not yet been met at the year-end are included in creditors to be carried forward to the following year.

Parochial fees are recognised as income when receivable.

Donations other than grants are recognised when receivable.

Gains on disposal of fixed assets for the charitable c (i.e. non-investment assets) are accounted for as other income. Losses on disposal of such assets are accounted for as other expenditure.

(b) Expenditure

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

Costs of raising funds are constrained to costs relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

(b) Expenditure (continued)

Charitable expenditure is analysed mission and ministry in the parishes of the diocese.

Grants payable are charged to the SoFA in the year when the offer is conveyed to the recipient except those in cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the charitable company, such grants being recognised as expenditure when the conditions attaching are fulfilled.

Grants offered subject to such conditions which have not yet been met at the year-end are noted as a commitment, but not accrued as expenditure.

Support costs consist of management, administration and governance costs. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated based on estimated usage of resources at Church House.

Employee benefits. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Pension contributions. by The Church of England Pensions Board and is charged to the General Fund in the period in which the contributions become due for payment (for further details of the schemes in place see note 28).

Deficit funding for the pension schemes to which the charitable company participates is accrued at current value in creditors, separated between contributions falling due within one year and more than one year.

(c) Tangible fixed assets and depreciation

Freehold properties

Depreciation is not provided on buildings as any provision (annual or cumulative) would not be material due to the very long expected remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value in the financial statements. The charitable company has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repairs of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from obsolescence. In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value. Annual impairment reviews are carried out to ensure that the carrying value is not less than the recoverable amount in accordance with FRS 102.

Investment properties

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

Parsonage houses

The charitable company has followed the requirements of FRS 102, in its accounting treatment for benefice houses (parsonages). FRS 102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The charitable company is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their estimated current market value.

School properties

Aided schools are the subject either of Trusts for which the charitable company acts merely as trustee, or of the Secretary of England schools within the dioceses. Accordingly, school properties are not included in these financial statements.

The distribution of the proceeds from the sale of a redundant school may depend on an order of the Department for Education or on a scheme approved by the Charity Commission. Until approval for distribution has been granted, the sale proceeds are invested and held by the charitable company in trust. When approval for distribution is eventually granted, the charitable c for as a restricted fund in these financial statements.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

(c) Tangible fixed assets and depreciation (continued)

Closed churches

Diocesan Council, they are of negligible value. If a situation arises whereby a church is likely to be an asset rather than a liability, then it will be brought into the financial statements at the appropriate time.

Other tangible fixed assets are capitalised at cost and depreciated at rates of between 20% and 33[1] /3% on a straight line basis.

Leasehold improvements are depreciated over the term of the lease.

(d) Fixed asset investments

Fixed asset investments are included in the balance sheet at market value and the gain or loss taken to the SoFA.

Listed investments are UK listed company shares and are valued at their quoted bid price.

Glebe comprises a portfolio of mainly agricultural property and is professionally revalued every 5 years to establish fair value. The last revaluation took place as at 31 December 2020. In adjust the market value for additions and disposals and such professional advice that may be received if this is material.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial instruments

ctual

provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured as the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Financial assets held at fair value comprise the listed and unlisted investments disclosed in note 19.

Concessionary loans

Concessionary loans are loans provided at below market rates and are recognised in the accounts at the amount due with the carrying value adjusted to reflect repayments made in subsequent periods.

(e) Other accounting policies

Leasing

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the lease term.

(f) Fund balances

Fund balances are split between unrestricted (general and designated), restricted income funds and capital endowment funds.

Unrestricted funds are freely available for any purpose within the charitable c

Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

(f) Fund balances (continued)

Endowment funds are those held on trust as capital. In the case of the endowment funds administered by the charitable company, where there are discretionary powers to convert capital into income, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.

in line with section 5A of the Diocesan Stipends Funds Measure 1953.

Details of the major funds are given in note 24.

(as defined by the Charities Act 2011) and any other trusts where the charitable company acts as trustee and controls the management and use of the funds, are included in the charitable c charity branches. Trusts where the charitable company acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are summarised in the notes to the financial statements.

(g) Critical accounting estimates and judgements

assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key estimates and assumptions made in these accounts are:

published index to reflect changes since the last valuation.
property management company.
The present value of the clergy and lay pension schemes defined benefit liabilities depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions in determining the net cost of income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 28, will impact the carrying amount of any pension liability.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

3. Donations

Parish contributions

Parish contributions
	Unrestricted	Restricted	Endowments	2022
	funds	funds	£	£
	£	£
Current year call	4,549,440	-	-	4,549,440
Shortfall in contributions	(1,525,042)	-	-	(1,525,042)
	__	__	__	__
	3,024,398	-	-	3,024,398
Receipts for previous year	49,497	-	-	49,497
	__	__	__	__
	3,073,895	-	-	3,073,895

Current year MMF receipts represent 66.48% of the total call (2021: 65.76%) or, when receipts for previous years are included, 67.57% of the total call (2021: 66.69%).

Unrestricted funds £ Selective allocations 880,221 42,465 Strategic Development Funding (SDF) Falmouth - Strategic Development Funding (SDF) Phase 2 - RME - Generous Giving Funding - Strategic Capacity Funding (SCF) Director of Change and Renewal - Strategic Ministry Funding (SMF) - Lambeth Palace Conference - Strategic Capacity Funding (SCF) On the Way - Transition Funding - Energy cost grants - Clergy hardship grants - Archbishops mission grant - _ 922,686 Other donations Unrestricted funds £ Benefact Trust (previously AllChurches Trust) 104,000 Coronavirus Job Retention Grant - Contribution towards church schools: Department for Education - Donations from individuals 22,233 Other contributions 10,670 _ 136,903	Restricted funds £ Endowments £ - - - - 152,001 - 225,499 - 87,703 - 46,933 - 14,870 - 117,494 - - - 32,340 - 33,108 - 269,000 - 34,150 - 10,000 - _ _ 1,023,098 - Restricted funds £ Endowments £ - - - - 47,872 - 3,709 - - - _ _ 51,581 -	2022 £ 880,221 42,465 152,001 225,499 87,703 46,933 14,870 117,494 - 32,340 33,108 269,000 34,150 10,000 __ 1,945,784
		2022 £ 104,000 - 47,872 25,942 10,670 __ 188,484

Other donations

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

3. Donations (continued) Comparative analysis for 2021

Parish contributions

Parish contributions
Unrestricted funds £ Current year call 4,569,276 Shortfall in contributions (1,564,367) _ 3,004,909 Receipts for previous year 42,106 _ 3,047,015 Unrestricted funds £ Selective allocations 861,464 44,704 Strategic Development Funding (SDF) Falmouth - Strategic Development Funding (SDF) Phase 2 - RME - Generous Giving Funding - Strategic Capacity Funding (SCF) Director of Change and Renewal - Strategic Ministry Funding (SMF) - Lambeth Palace Conference - Strategic Capacity Funding (SCF) On the Way - Transition Funding - Energy cost grants - Clergy hardship grants - Archbishops mission grant - _ 906,168 Other donations Unrestricted funds £ AllChurches Trust (now Benefact Trust) 102,250 Coronavirus Job Retention Grant - Contribution towards church schools: Department for Education Donations from individuals 4,570 Other contributions 10,795 _ 117,615	Restricted funds £ Endowments £ 2021 £ - - 4,569,276 - - (1,564,367) _ _ __ - - 3,004,909 - - 42,106 _ _ __ - - 3,047,015 Restricted funds £ Endowments £ 2021 £ - - 861,464 - - 44,704 177,989 - 177,989 257,201 - 257,201 103,442 - 103,442 44,096 - 44,096 - - - 102,593 - 102,593 (900) - (900) 43,194 - 43,194 - - - - - - - - - - - - _ _ __ 727,615 - 1,633,783 Restricted funds £ Endowments £ 2021 £ - - 102,250 23,091 - 23,091 - 47,205 47,205 4,504 - 9,074 - - 10,795 _ _ __ 74,800 - 192,415
		2021 £ 861,464 44,704 177,989 257,201 103,442 44,096 - 102,593 (900) 43,194 - - - - __ 1,633,783
		2021 £ 102,250 23,091 - 47,205 9,074 10,795 __ 192,415

Other donations

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

4. Other activities Unrestricted funds £ Rents from Parsonage houses - Recoverable costs - _ - Comparative analysis for 2021 Unrestricted funds £ Rents from Parsonage houses - Recoverable costs - _ - 5. Investment income Unrestricted funds £ Dividends and interest 358,007 Rents: Board properties 115,915 Glebe estate - Redundant schools - _ 473,922 Comparative analysis for 2021 Unrestricted funds £ Dividends and interest 395,819 Rents: Board properties 116,255 Glebe estate - Redundant schools - _ 512,074	Restricted funds £ Endowments £ 193,905 - 10,000 - _ _ 203,905 - Restricted funds £ Endowments £ 255,237 - 21,489 - _ _ 276,726 - Restricted funds £ Endowments £ 32,716 604,630 - - - 361,630 36,446 - _ _ 69,162 966,260 Restricted funds £ Endowments £ 22,368 481,543 - - - 385,118 36,446 - _ _ 58,814 866,661	2022 £ 193,905 10,000 __ 203,905
		2021 £ 255,237 21,489 __ 276,726
		2022 £ 995,353 115,915 361,630 36,446 __ 1,509,344
		2021 £ 899,730 116,255 385,118 36,446 __ 1,437,549

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

6. Other incoming resources Unrestricted funds £ Realised gains on disposal of assets for the 36,379 Comparative analysis for 2021 Unrestricted funds £ Realised gains on disposal of assets for the 1,426 7. Fund raising costs Unrestricted funds £ Glebe: Outgoings - Management charges - Pension scheme interest 2,000 Let vacant parsonages (management charges) 189 Central support costs 134,850 _ 137,039 Comparative analysis for 2021 Unrestricted funds £ Glebe: Outgoings - Management charges - Pension scheme interest 1,000 Let vacant parsonages (management charges) 693 Central support costs 129,347 _ 131,040	Restricted funds £ Endowments £ - 43,392 Restricted funds £ Endowments £ - 11 Restricted funds £ Endowments £ - 114,868 - 50,714 - - - - - - _ _ - 165,582 Restricted funds £ Endowments £ - 116,377 - 51,771 - - - - - - _ _ - 168,148	2022 £ 79,771
		2021 £ 1,437
		2022 £ 114,868 50,714 2,000 189 134,850 __ 302,621
		2021 £ 116,377 51,771 1,000 693 129,347 __ 299,188

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

8. Charitable activities

						Unrestricted	Restricted	Endowments	2022
						funds	funds	£	£
						£	£
Training			for Ministry			157,529	-	-	157,529
National			Church responsibilities			96,483	-	-	96,483
Grants and provisions						13,293	-	-	13,293
Mission		Agency pension contributions				6,579	-	-	6,579
Retired clergy housing costs (CHARM)						59,422	-	-	59,422
						__	__	__	__
						333,306	-	-	333,306
						__	__	__	__
Resourcing Ministry
Parish ministry:
Stipends and national				insurance		2,061,851	117,494	(61,245)	2,118,100
Pension			contributions			606,025	-	-	606,025
Clergy salary						8,994	-	-	8,994
Clergy settlements						33,806	-	-	33,806
Home/parish mileage						8,950	-	-	8,950
Sundry clergy related				costs		24,469	-	-	24,469
Housing			costs			1,320,516	-	-	1,320,516
Property management charges						145,462	-	-	145,462
Resettlement and associated costs						85,443	-	-	85,443
Other payments (including training)						233,778	-	-	233,778
Central support costs						181,438	-	-	181,438
						__	__	__	__
						4,710,732	117,494	(61,245)	4,766,981
						__	__	__	__
Support for ministry				and mission
Mission		Fund grants				218,086	330,123	-	548,209
Diocesan support for ordinands in training						118,487	92,315	-	210,802
Training			and development			37,178	-	-	37,178
DMPC functions						145,383	-	-	145,383
Specialist ministries						30,360	21,867	-	52,227
Safeguarding						144,241	-	-	144,241
Social	Responsibility					21,309	-	-	21,309
Diocesan Advisory Committee						34,403	-	-	34,403
						50,403	-	-	50,403
Faculty fees						11,542	-	-	11,542
Communications						52,473	-	-	52,473
Closed church expenditure						-	37,563	-	37,563
						5,877	-	-	5,877
Central support costs						409,463	-	-	409,463
Lay staff cost of living				payments		36,854	-	-	36,854
Movement in lay pension					scheme deficit	(107,502)	-	-	(107,502)
Generous Giving Advisors						-	46,933	-	46,933
On the Way						-	80,318	-	80,318
Bad debt provision						20,000	-	-	20,000
Transforming Mission				(TM) Falmouth		81,896	152,391	-	234,287
Transforming Mission				(TM) Phase 2		150,528	225,792	-	376,320
						__	__	__	__
						1,460,981	987,302	-	2,448,283
						__	__	__	__
Expenditure on Education
Support			for church schools and parishes			74,336	258,962	-	333,298
						__	__	__	__
						6,579,355	1,363,758	(61,245)	7,881,868

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

Charitable activities (continued)

Comparative analysis for 2021

						Unrestricted	Restricted	Endowments	2021
						funds	funds	£	£
						£	£
Training			for Ministry			157,583	-	-	157,583
National			Church responsibilities			110,078	-	-	110,078
Grants and provisions						13,460	-	-	13,460
Mission		Agency pension contributions				7,055	-	-	7,055
Retired clergy housing costs (CHARM)						57,973	-	-	57,973
						__	__	__	__
						346,149	-	-	346,149
						__	__	__	__
Resourcing Ministry
Parish ministry:
Stipends and national				insurance		2,149,318	102,593	-	2,251,911
Pension			contributions			633,205	-	-	633,205
Clergy salary						-	-	-	-
Clergy settlements						18,627	-	-	18,627
Home/parish mileage						8,110	-	-	8,110
Sundry clergy related				costs		17,412	-	-	17,412
Housing			costs			983,800	-	-	983,800
Property management charges						140,688	-	-	140,688
Resettlement and associated costs						78,100	-	-	78,100
Other payments (including training)						239,238	-	-	239,238
Central support costs						174,363	-	-	174,363
						__	__	__	__
						4,442,861	102,593	-	4,545,454
						__	__	__	__
Support for ministry				and mission
Mission		Fund grants				56,544	-	-	56,544
Diocesan support for ordinands in training						74,216	89,972	-	164,188
Training			and development			107,838	523	-	108,361
DMPC functions						145,401	-	-	145,401
Specialist ministries						28,396	20,197	-	48,593
Safeguarding						120,985	-	-	120,985
Social	Responsibility					23,236	-	-	23,236
Diocesan Advisory Committee						32,331	-	-	32,331
						39,698	-	-	39,698
Faculty fees						11,570	-	-	11,570
Communications						56,929	-	-	56,929
Closed church expenditure						-	27,915	-	27,915
						3,692	-	-	3,692
Central support costs						393,743	-	-	393,743
Lay staff cost of living				payments		-	-	-	-
Movement in lay pension					scheme deficit	(89,000)	-	-	(89,000)
Generous Giving Advisors						-	44,096	-	44,096
On the Way						-	43,194	-	43,194
Bad debt provision						150,000	-	-	150,000
Transforming Mission				(TM) Falmouth		81,848	190,417	-	272,265
Transforming Mission				(TM) Phase 2		172,069	264,369	-	436,438
						__	__	__	__
						1,409,496	680,683	-	2,090,179
						__	__	__	__
Expenditure on Education
Support			for church schools and parishes			94,471	151,283		245,754
						__	__	__	__
						6,292,977	934,559	-	7,227,536

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

9. Other resources expended

Unrestricted funds £ Restricted funds £ Endowments £ Realised loss on disposal of assets for the - - - Comparative analysis for 2021 Unrestricted funds £ Restricted funds £ Endowments £ Realised loss on disposal of assets for the - - - Analysis of expenditure including allocation of support costs Activities undertaken directly £ Grant funding of activities £ Support costs £ Raising funds 167,771 - 134,850 Charitable activities: - 333,306 - Resourcing parish ministry 4,474,350 111,193 181,438 Support for ministry and mission 1,513,411 525,409 409,463 Education 333,298 - - _ _ _ 6,488,830 969,908 725,751 Comparative analysis for 2021 Activities undertaken directly £ Grant funding of activities £ Support costs £ Raising funds 169,841 - 129,347 Charitable activities: Council - 346,149 - Resourcing parish ministry 4,305,667 65,424 174,363 Support for ministry and mission 1,621,892 74,544 393,743 Education 245,754 - - _ _ _ 6,343,154 486,117 697,453		2022 £ - 2021 £ - Total costs 2022 £ 302,621 333,306 4,766,981 2,448,283 333,298 __ 8,184,489

		Total costs 2021 £ 299,188 346,149 4,545,454 2,090,179 245,754 __ 7,526,724

10. Analysis of expenditure including allocation of support costs

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

11. Analysis of support costs

Analysis of support costs
Central administration Governance: External audit Registrar and Chancellor Synodical costs Comparative analysis for 2021 Central administration Governance: External audit Registrar and Chancellor Synodical costs	Unrestricted Funds General £ Designated £ 706,431 - 19,320 - 50,403 - 5,877 - _ _ 782,031 - Unrestricted Funds General £ Designated £ 677,785 - 19,668 - 33,698 - 3,692 - _ _ 734,843 -	Restricted Endowment Funds £ Funds £ - - - - - - - - _ _ - - Restricted Endowment Funds £ Funds £ - - - - - - - - _ _ - -	Total 2022 £ 706,431 19,320 50,403 5,877 __ 782,031
			Total 2021 £ 677,785 19,668 33,698 3,692 __ 734,843

The Registrar and Chancellor, Governance Review and Synodical costs are not included in the support costs in note 10.

12. Analysis of grants made

		Number	Individuals	Institutions	2022	2021
			£	£	£	£
From	unrestricted funds for National Church responsibilities:
		5	-	333,306	333,306	346,149
		____	__	_	__	__
From	unrestricted funds:
Resettlement and first incumbency grants 18			45,886	-	45,886	53,067
Doing Church Differently grants		1	-	7,562	7,562	(675)
Ordinands in training		2	19,438	-	19,438	8,209
Clergy for training		22	5,069	-	5,069	4,148
Mission initiatives in parishes		77	-	203,874	203,874	57,219
Clergy hardship grants		7	6,650	-	6,650	-
		____	__	__	__	__
		127	77,043	211,436	288,479	121,968
		____	__	__	__	__
From	restricted funds for various purposes:
Mission initiatives in parishes		124	-	295,973	295,973	-
Overseas mission work		3	-	18,000	18,000	18,000
Clergy hardship grants		38	34,150	-	34,150	-
		____	__	__	__	__
		165	34,150	313,973	348,123	18,000
		______	__	__	__	__
		297	111,193	858,715	969,908	486,117

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

12. Analysis of grants made (continued)

Comparative analysis for 2021

Comparative analysis for 2021
Number Individuals £ Institutions £ From unrestricted funds for National Church responsibilities: 5 - 346,149 _ _ _ From unrestricted funds: Resettlement and first incumbency grants 21 53,067 - Doing Church Differently grants 1 - (675) Ordinands in training 3 8,209 - Clergy for training 19 4,148 - Mission initiatives in parishes 16 - 57,219 Clergy hardship grants - - - _ __ __ 60 65,424 56,544 _ _____ From restricted funds for various purposes: Mission initiatives in parishes - - - Overseas mission work 3 - 18,000 Clergy hardship grants - - - _ _ __ 3 - 18,000 _ _ __ 68 65,424 420,693 13. Transfer between funds Unrestricted funds £ Restricted funds £ Endowments £ General Fund/Pastoral Account transfer 1,131,861 (1,131,861) - Payments to acquire property - (93,939) 93,939 Receipts from sale of property - 43,392 (43,392) Total Return spend 800,678 - (800,678) __ __ __ 1,932,539 (1,182,408) (750,131) Comparative analysis for 2021 Unrestricted funds £ Restricted funds £ Endowments £ General Fund/Pastoral Account transfer 804,523 (804,523) - Payments to acquire property - (102,577) 102,577 Receipts from sale of property - 11 (11) Total Return spend 21,443 - (21,443) __ __ ______ 825,966 (907,089) 81,123	2021 £ 346,149 __ 53,067 (675) 8,209 4,148 57,219 - __ 121,968 __ - 18,000 - __ 18,000 __ 486,117	2020 £ 351,674 __ 58,121 - 39,178 1,921 98,635 - __ 197,855 __ 212 9,000 - __ 9,212 __ 558,741

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

14. Other gains and losses on revaluation Unrestricted funds £ Revaluation of land and buildings 1,180,654 Comparative analysis for 2021 Unrestricted funds £ Revaluation of land and buildings 1,673,000 15. Net movement in funds This is stated after charging: Staff costs (note 16) Redundancy costs - audit fee - other services Realised losses on disposals of tangible fixed assets Operating leases - land and buildings - other Depreciation of tangible fixed assets This is stated after crediting: Realised gains on disposals of tangible fixed assets Realised gains on disposals of investment fixed assets	Restricted funds £ Endowments £ - 3,283,511 Restricted funds £ Endowments £ - 5,631,980	2022 £ 4,464,165 2021 £ 7,304,980 2022 £ 1,436,416 14,561 16,100 - - 57,867 5,105 9,570 2022 £ 79,771 338,215	2021 £ 1,491,005 2,903 16,390 - - 53,200 5,558 9,743
			2021 £ 1,437 1,616,903

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

16. Staff costs

Employee costs during the year were as follows:

Wages and salaries Social security costs Pension contributions The average number of persons employed during the year: Administration and financial management Communications Discipleship & Ministry, Stewardship Safeguarding & inclusion Education Transforming Mission Change & Renewal	2022 £ 1,183,185 116,316 136,915 __ 1,436,416 2022 15 1 13 4 2 8 1 __ 44	2021 £ 1,235,647 113,717 141,641 _ 1,491,005 2021 14 1 16 4 2 11 - _ 48

The average number of persons employed during the year based on full time equivalents:

	2022	2021
Administration and financial management	13.3	12.2
Communications	0.9	1.1
Discipleship & Ministry, Stewardship	8.6	10.5
Safeguarding & inclusion	2.6	2.7
Education	2.6	2.4
Transforming Mission	6.3	8.8
Change & Renewal	0.5	0.0
	__	__
	34.8	37.7

Remuneration of higher paid employees were as follows:

		2022	2021
		£	£
£60,001	- £70,000	1	2

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 activities of the TDBF. During 2022 they were:

Diocesan Secretary and Company Secretary Simon Cade Director for Ministry Jonathan Rowe (post made redundant June 2022) Director of Education and Discipleship Katie Fitzsimmons Director of Finance and Assets Sophie Eddy

For these 4 employees remuneration and pensions amounted to £272,393 (2021: £310,118). Expenses were £1,893 (2021: £985).

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

Staff costs (continued)

Related party transaction

The son of a member of the key management personnel worked for the charitable company and earned £1,096 (2021: £0).

No Trustee received any remuneration for services as Trustee. 6 Trustees (2021: 7) received travelling and out of pocket expenses, totalling £12,744 (2021: £6,362) in respect of General Synod duties, duties as archdeacon or area/rural dean, and other duties as Trustees.

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

ompany during the year:
	Stipend	Housing
The Rt Revd H Nelson	No	Yes
The Ven K Betteridge	Yes	Yes
The Ven P Bryer	Yes	Yes
The Revd. C McQuillen-Wright	Yes	Yes
The Revd. T Folland	Yes	Yes
The Revd. S Morgan	Yes	Yes
The Revd. B Morgan Lundie	Yes	Yes
The Revd. P Holley	Yes	Yes
The Revd. J W Foot	Yes	Yes

The charitable company is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than Bishops and cathedral staff. The charitable company is also responsible for the provision of housing for stipendiary clergy in the diocese including the Suffragan Bishop but excluding the Diocesan Bishop and cathedral staff.

The charitable company paid an average of 76 (2021: 77) stipendiary clergy (including 2 Archdeacons) as office holders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

	2022	2021
	£	£
Stipends	2,041,564	2,117,273
National insurance contributions	169,786	170,443
Pension costs	635,136	673,222
Apprenticeship Levy	9,231	9,695
	__	__
	2,855,717	2,970,633

The stipends of the Diocesan Bishop and Suffragan Bishops were paid and funded by the Church Commissioners and are in the range £38,648 - £49,690 (2021 range £38,265 - £49,198). The annual rate of stipend, funded by the charitable company, paid to Archdeacons in 2020 was in the range £36,100 - £36,461 (2021 range £35,909 - £42,333) and other clergy who were Trustees were paid in the range £25,265 - £27,644 (2021 range £25,265 - £27,370).

17. Taxation

The charitable company is a registered charity and is not liable to UK corporation tax.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

18. Tangible fixed assets

18.1 Freehold land and buildings

	Board	Parsonage
	property	houses	Total
	£	£	£
At valuation
At 1 January 2022	12,909,768	45,297,023	58,206,791
Additions	542,728	93,939	636,667
Disposals	(425,500)	-	(425,500)
Revaluation adjustment	1,180,654	3,283,511	4,464,165
Transfer	-	-	-
	__	__	__
At 31 December 2022	14,207,650	48,674,473	62,882,123

All of the properties in the balance sheet are freehold and are vested in the TDBF, except for benefice houses (parsonages) which are vested in the incumbent but still included as charitable company assets in accordance with the accounting policies. Land and buildings at 31 December 2022 are included at valuation. Properties are subject to a five-year cycle of survey and consequent repairs are charged as expenditure.

The corresponding historical cost figures are:

At cost At 1 January 2022 Additions Disposals Transfer At 31 December 2022 Leasehold premises At cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021	Board property £ Parsonage houses £ Total £ 9,414,984 13,264,065 22,679,049 542,728 93,939 636,667 (341,570) - (341,570) - - - _ _ __ 9,616,142 13,358,004 22,974,146 £ 28,218 - _ 28,218 24,836 1,336 _ 26,172 2,046 3,382	Board property £ Parsonage houses £ Total £ 9,414,984 13,264,065 22,679,049 542,728 93,939 636,667 (341,570) - (341,570) - - - _ _ __ 9,616,142 13,358,004 22,974,146 £ 28,218 - _ 28,218 24,836 1,336 _ 26,172 2,046 3,382
		£ 28,218 - __ 28,218
		24,836 1,336 __ 26,172
		2,046
		3,382

18.2 Leasehold premises

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

18. Tangible fixed assets (continued)

18.3 Office equipment

Office equipment
					£
At cost
At 1 January 2022					98,057
Additions					-
Disposals					-
					__
At 31 December 2022					98,057
Depreciation
At 1 January 2022					81,009
Disposals					-
Charge for year					8,234
					__
At 31 December 2022					89,243
Net book value
At 31 December 2022					8,814
At 31 December 2021					17,048
Total tangible fixed assets
				2022	2021
				£	£
Net book value
Freehold land and buildings			62,882,123		58,206,791
Leasehold premises				2,046	3,382
Office equipment				8,814	17,048
			__		__
			62,892,983		58,227,221
Fixed asset investments
	Freehold
	investment
	property
	(Glebe and	Listed	Unlisted
	other)	investments	investments		Total
	£	£	£		£
At valuation
At 1 January 2022	17,445,000	12,098,483	20,976,156		50,519,639
Additions	17,052	-	-		17,052
Disposals	(262,350)	-	-		(262,350)
Revaluation adjustment	1,745,298	(1,189,099)	(2,647,490)		(2,091,291)
Transfer	-	-	-		-
	__	__	__		__
At 31 December 2022	18,945,000	10,909,384	18,328,666		48,183,050

18.4 Total tangible fixed assets

19. Fixed asset investments

Glebe property was professionally valued as at 31 December 2020 by Savills (UK) Limited, on a Fair Value International Valuation Standards basis. Glebe property was vested in the charitable company in 1978 under the Endowments and Glebe Measure 1978. Further advice is considered in the intervening period and the valuation adjusted by the trustees accordingly.

Listed investments substantially comprise shares in funds managed by Sarasin and Cazenove. Unlisted investments substantially comprise shares in funds managed by The CBF Church of England Funds.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

20. Debtors

	2022	2021
	£	£
Amounts falling due within one year
Trade debtors	7,391	-
Concessionary loans to parishes and others	40,000	48,000
Other debtors including prepayments and accrued	937,031	736,131
income
	__	__
	984,422	784,131
Amounts falling due after more than one year
Concessionary loans to parishes and others	41,500	73,000
	__	__
	1,025,922	857,131

Concessionary interest free loans are made to parishes with no security. At the year end there were amounts committed to of £10,000 (2021: £10,000). The repayment terms of the loans range from 6 months to 7 years.

21. Cash at bank and in hand

	2022	2021
	£	£
The CBF Church of England Deposit Fund	4,033,568	4,851,027
COIF Charities Deposit Fund	338,630	327,583
Barclays Bank PLC	28,939	25,592
National Westminster Bank PLC	707,333	858,027
Savills Client Account	55,507	135,663
Cash in hand	571	639
	__	__
	5,164,548	6,198,531
Less: attributable to local trust funds	(816,245)	(824,959)
	__	__
	4,348,303	5,373,572

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

22. Creditors: amounts falling due within one year

Trade creditors Other creditors (including taxation and social security) Accruals and deferred income (note 23) Pension scheme liabilities (note 28) Clergy Pension Scheme Lay Defined Benefit Scheme 23. Deferred income Deferred income is included within: Creditors due within one year Deferred income as at 1 January 2022 Released from previous years Resources deferred in the year Deferred income as at 31 December 2022	2022 £ 295,830 115,020 503,571 - - __ 914,421 2022 £ 253,281 412,272 (410,355) 251,364 __ 253,281	2021 £ 246,033 34,142 661,982 142,000 38,000 __ 1,122,157
		2021 £ 412,272
		545,285 (231,117) 98,104 __ 412,272

Included within deferred income of £253,281 (2021: £412,272) are the following balances: £56,393 (2021: £55,972) in respect of glebe deferred income, £82,065 (2021: £82,066) in respect of glebe service charges, £47,937 (2021: £156,579) received in advance of entitlement and £40,934 (2021: £90,939) received on behalf of schools.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed

24.1 Summary of fund movements

At 31 December 2022:
Balance
brought
forward
£

Unrestricted funds
General Fund
1,924,347
Designated funds:
Board Houses Fund
12,909,768
Church House Fund
478,831
Densham Loan Fund
1,500
TM - Falmouth
169,170
TM
Phase 2
426,417
Net Zero 2030
-
Energy grants
-
Clergy hardship fund
-
Lay staff cost of living
payments
-
Mission grants
-
_
15,910,033
Restricted funds
Pastoral Account
12,296,706
Diocesan Council for Mission
& Unity
53,967
Education Trusts
1,122,400
Mission Fund
26,972
RME
27,723
SDF
TM Falmouth
23,574
SDF
Phase 2
(177)
SCF
On the Way
-
Strategic Ministry Fund
-
Generous Giving Fund
-
CJRG
-
Lambeth Conference
-
Transition Funding
-
SC~~F~~
~~D~~ir Change & Renewal
-
Energy Cost Grant
-
Clergy Hardship Fund
-
Archbishop mission grant
-
Bishop Phillpotts Library
12,992
Bishop Phillpotts Prize Fund
6,551
_
13,570,708
Expendable endowment
Parsonage Houses Fund
45,297,023
Permanent endowment
Stipends Fund Capital
Account
38,970,518
__
Total endowments
84,267,541
Total
113,748,282

Incoming
resources
£
Resources
expended
£
Gains and
losses
£
Transfers
£
Balance
carried
forward
£
4,903,557
(6,244,448)
(91,724)
1,052,512
1,544,244
-
36,379
1,180,654
80,849
14,207,650
-
(43,200)
-
-
435,631
-
-
-
(1,500)
-
-
(81,896)
-
-
87,274
-
(150,528)
-
-
275,889
-
(24,782)
-
374,782
350,000
-
(139,693)
-
229,693
90,000
-
(6,650)
-
6,650
-
-
(36,854)
-
36,854
-
-
(24,722)
-
152,699
127,977
_
_
_
_
_
4,903,557
(6,716,394)
1,088,930
1,932,539
17,118,665
203,905
(37,563)
(1,370,914)
(1,182,408)
9,909,726
3,709
(18,065)
-
-
39,611
117,034
(258,963)
(118,337)
-
862,134
-
(26,972)
-
-
-
87,703
(92,315)
-
-
23,111
152,001
(152,391)
-
-
23,184
225,499
(225,792)
-
-
(470)
32,340
(32,340)
-
-
-
117,494
(117,494)
-
-
-
46,933
(46,933)
-
-
-
-
-
-
-
-
-
-
-
-
-
33,108
(33,108)
-
-
-
14,870
(14,870)
-
-
-
269,000
(269,000)
-
-
-
34,150
(34,150)
-
-
-
10,000
(3,111)
-
-
6,889
-
(691)
-
-
12,301
-
-
(97)
-
6,454
_
_
_
_
__
1,347,746
(1,363,758)
(1,489,348)
(1,182,408)
10,882,940
43,392
-
3,283,511
50,547
48,674,473
966,260
(104,337)
(172,004)
(800,678)
38,859,759
_
_
_
__
__
1,009,652
(104,337)
3,111,507
(750,131)
87,534,232
7,260,955
(8,184,489)
2,711,089
-
115,535,837

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed (continued)

24.2 Prior year comparative summary of fund movements

At 31 December 2021:

Balance brought forward £ Unrestricted funds General Fund 2,229,771 Designated funds: Board Houses Fund 11,236,768 Church House Fund 522,031 Densham Loan Fund 1,500 TM Falmouth 251,018 TM Phase 2 Net Zero 2030 Energy grants Clergy hardship fund Lay staff cost of living payments 598,486 - - - - Mission grants - _ 14,839,574 Restricted funds Pastoral Account 11,523,611 Diocesan Council for Mission & Unity 67,371 Education Trusts 1,039,017 Mission Fund 26,972 RME 14,253 SDF- TM Falmouth 21,099 SDF Phase 2 725 SC~~F~~ On the Way - Strategic Ministry Fund - Generous Giving Fund - CJRG - Lambeth Conference 900 Transition Funding - SC~~F~~ Dir Change & Renewal - Energy Cost Grant - Clergy Hardship Fund - Archbishop mission grant - Bishop Phillpotts Library 14,288 Bishop Phillpotts Prize Fund 6,534 _ 12,714,770 Expendable endowment Parsonage Houses Fund 39,562,466 Permanent endowment Stipends Fund Capital Account 34,157,121 __ Total endowments 73,719,587 Total 101,273,931	Incoming resources £ Resources expended £ Gains and losses £ 4,850,769 (6,106,883) 144,741 - 1,426 1,673,000 - (43,200) - - - - - (81,848) - - - - - - (172,069) - - - - - - - - - - (21,443) - _ _ _ 4,850,769 (6,424,017) 1,817,741 276,726 (27,915) 1,431,373 4,661 (18,065) - 105,862 (150,720) 128,241 - - - 103,442 (89,972) - 177,989 (175,514) - 257,201 (258,103) - 43,194 (43,194) - 102,593 (102,593) - 44,096 (44,096) - 23,091 (23,091) - (900) - - - - - - - - - - - - - - - - - - (1,296) - - - 17 _ _ _ 1,137,955 (934,559) 1,559,631 11 - 5,631,980 866,661 (168,148) 4,136,327 _ _ __ 866,672 (168,148) 9,768,307 6,855,396 (7,526,724) 13,145,679	Transfers £ Balance carried forward £ 805,949 1,924,347 (1,426) 12,909,768 - 478,831 - 1,500 - 169,170 - - - - - 426,417 - - - - 21,443 - _ _ 825,966 15,910,033 (907,089) 12,296,706 - 53,967 - 1,122,400 - 26,972 - 27,723 - 23,574 - (177) - - - - - - - - - - - - - - - - - - - - - 12,992 - 6,551 _ __ (907,089) 13,570,708 102,566 45,297,023 (21,443) 38,970,518 _ __ 81,123 84,267,541 - 113,748,282

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed (continued)

24.3 Purposes of funds

Unrestricted funds

The General Fund supports the day to day activities of the charitable company.

The Board House Fund is represented by the book value of board properties. Additions to and disposals from the Fund are financed by or credited to the General Fund respectively.

The following other funds have been set aside by the trustees for purposes which the trustees themselves have designated:

The Church House Fund was created to fund the aggregate charges payable under the terms of the non-cancellable lease agreement for the new office premises at Church House.

The Densham Loan Fund originated from a bequest given to the charitable company in 1955 in memory of the late Mr ES Densham for the provision of loans to the clergy for the purchase of cars.

The Transforming Mission Funds are for the charitable c Mission project in Falmouth, Camborne, Truro, St Austell and Liskeard. There is a restricted fund which is funded by the Archbishops Council.

The Net Zero 2030 fund is paying for Net Zero works on the Board of Finance properties.

The Energy Grants is funding which was added to the funding received from the Archbishops Council to increase the amount distributed to the parishes to assist with rising energy costs.

The Clergy Hardship Fund is funding which was added to the funding received from the Archbishops Council to increase the amount distributed to the clergy to assist with rising energy costs.

The Lay staff cost of living payment fund is for payments which were made to lay staff to assist them with the cost of living crisis which included rising energy costs.

Restricted funds

The Pastoral Account mainly represents the proceeds of sale of redundant parsonage houses which may be applied for the extensive purposes permitted by section 94 of the Mission and Pastoral Measure 2011. £3.3m is ringfenced pending pastoral reorganisations.

The Truro Diocesan Council for Mission and Unity funds are managed by the World Church Committee (a sub committee of the charitable company) for the purposes of enabling the diocese to be a vibrant part of the world-wide church. Specifically, it actively promotes formal links with other dioceses, currently with the Diocese of Strangnas in Sweden. (The link with the Diocese of Mzimvubu in South Africa ceased in 2013 but, the diocese continues to support the feeding of orphans and vulnerable children s programme in Mzimvubu).

The Diocese of Truro Education Trusts are governed by Schedule 36 of the Education Act 1996. The fund mainly represents the unspent sale proceeds of redundant Church of England school properties. The objects of the trusts are widely drawn to allow trust assets to be used for a variety of educational purposes.

The Mission Fund is for the specific purposes of investment in new mission initiatives which are not included in deanery plans.

Resourcing Ministerial Education (RME) is an age related block grant, received from the Archbishops Council to fund the training of ordinands in the diocese.

The Strategic Development Fund TMF (Transforming Mission Falmouth) restricted fund is grant funding received from the Archbishops Council to assist with financing the Transforming Mission project in Falmouth. There is an unrestricted fund which is funded by TDBF.

The Strategic Development Fund TM (Transforming Mission) Phase 2 is grant funding received from the Archbishops Council to assist with financing the Transforming Mission project in Camborne, Truro, St Austell and Liskeard. There is an unrestricted fund which is funded by TDBF.

The Strategic Capacity Fund On the Way is grant funding received from the Archbishops Council to assist in funding the On the Way work.

The Strategic Capacity Fund Director of Change & Renewal is grant funding received from the Archbishops Council to assist in funding the new post which is leading the Next Steps On the Way delivery.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed (continued)

24.3 Purposes of funds (continued)

The Strategic Ministry Fund is grant funding received from the Archbishops Council to assist with financing curates.

The Generous Giving Fund is grant funding received from the Archbishops Council to assist with financing Generous Giving Advisors.

The Transition Funding is grant funding received from the Archbishops Council and is being used to resource the delivery of Next Steps On the Way.

The Energy Cost Grant is grant funding received from the Archbishops Council for distribution to parishes to assist with rising energy costs.

The Clergy Hardship Fund is grant funding received from the Archbishops Council for distribution to clergy to assist with rising energy costs.

Coronavirus Job Retention Grant (CJRG) is grant funding received from the Government to assist with paying employees wages who are furloughed.

Bishop Phillpotts Library may be used to fund the resource of the library which is located at the Old Cathedral School in Truro.

Prize Fund may be used to award school prizes in religious education.

Endowment funds

The Parsonage Houses Fund is represented by the book value of parsonage houses and team vicarages. Additions to and disposals from the Fund are financed by or credited to the Pastoral Account respectively.

The Stipends Fund Capital Account is mainly represented by the book value of Glebe property and other investment assets. The fund generates income for the payment of stipends and can only be invested or applied to the capital purposes permitted by the Endowments and Glebe Measure 1976 and the Miscellaneous Provisions Measure 1992. Following Charity Commission approval of a total return approach to investments, the Trustees may transfer to income all or part of the unapplied total return.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed (continued)

24.3 Purposes of funds (continued)

Trust for
Investment
£
At 1 January 2021
8,669,805
Movements in the year:
Investment return: dividends and interest
-
Investment return: unrealised gains / (losses)
-
Investment return: fund raising costs
-
Funding of clergy pension deficit contributions
-
Transfer from Stipends Fund Capital Account to designated
fund
-
Indexation on base value of investment
468,423
_
Net movements in 2021
468,423
_
At 1 January 2022
9,138,228
Movements in the year:
Investment return: dividends and interest
-
Investment return: unrealised gains / (losses)
-
Investment return: fund raising costs
-
Funding of clergy pension deficit contributions
-
Transfer from Stipends Fund Capital Account to designated
fund
-
Indexation on base value of investment
960,665
__
Net movements in 2022
960,665
__
At 31 December 2022
Gift component of the permanent endowment
5,763,991
Accumulated inflation since original gift
4,334,902
Unapplied total return
-
______
10,098,893

Unapplied
Total Return
£
Total
Endowment
£
25,775,350
34,445,155
866,661
866,661
4,136,327
4,136,327
(168,148)
(168,148)
(144,469)
(144,469)
(21,443)
(21,443)
(468,423)
-
_
_
4,200,505
4,668,928
_
_
29,975,855
39,114,083
966,260
966,260
(172,004)
(172,004)
(165,582)
(165,582)
(82,320)
(82,320)
(800,678)
(800,678)
(960,665)
-
_
_
(1,214,989)
(254,324)
_
_
-
5,763,991
-
4,334,902
28,760,866
28,760,866
_
_
28,760,866
38,859,759

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) Notes to the financial statements

24. Funds employed (continued)

24.4 Analysis of net assets between funds

At 31 December 2022:

			Tangible		Net current	Provisions
			fixed		assets/	/ long term
			assets	Investments	(liabilities)	liabilities	Total
			£	£	£	£	£
Unrestricted funds
General Fund			10,860	793,112	740,272	-	1,544,244
Designated	funds:
Board Houses Fund			14,207,650	-	-	-	14,207,650
Church House Fund			-	-	435,631	-	435,631
Densham Loan Fund			-	-	-	-	-
TM Falmouth			-	-	87,274	-	87,274
TM Phase 2			-	-	275,889	-	275,889
Net Zero 2030			-	-	350,000	-	350,000
Energy grants			-	-	90,000	-	90,000
Clergy hardship fund			-	-	-	-	-
Lay staff cost of living payments			-	-	-	-	-
Mission grants			-	-	127,977	-	127,977
			__	__	__	__	__
			14,218,510	793,112	2,107,043	-	17,118,665
Restricted	funds
Pastoral Account			-	9,209,823	699,903	-	9,909,726
Diocesan Council for Mission & Unity			-	-	39,611	-	39,611
Education Trusts			-	951,107	(88,973)	-	862,134
Mission Fund			-	-	-	-	-
RME			-	-	23,111	-	23,111
Strategic Development Fund		TMF	-	-	23,184	-	23,184
Strategic Development Fund		Phase 2	-	-	(470)	-	(470)
Strategic Capacity Fund On the Way			-	-	-	-	-
Strategic Ministry Fund			-	-	-	-	-
Generous Giving Fund			-	-	-	-	-
Coronavirus Job Retention Grant			-	-	-	-	-
Lambeth Conference			-	-	-	-	-
Transition Funding			-	-	-	-	-
SC~~F~~ ~~D~~ir Change & Renewal			-	-	-	-	-
Energy Cost Grant			-	-	-	-	-
Clergy Hardship Fund			-	-	-	-	-
Archbishop	mission grant		-	-	6,889	-	6,889
Bishop Phillpotts Library			-	-	12,301	-	12,301
Bishop			-	851	5,603	-	6,454
			__	__	__	__	__
			-	10,161,781	721,159	-	10,882,940
Expendable endowment
Parsonage Houses Fund			48,674,473	-	-	-	48,674,473
Permanent endowment
Stipends Fund Capital Account			-	37,228,157	1,631,602	-	38,859,759
			__	__	__	__	__
Total endowments			48,674,473	37,228,157	1,631,602	-	87,534,232
Total			62,892,983	48,183,050	4,459,804	-	115,535,837

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

24. Funds employed (continued)

24.5 Prior year comparative summary of fund movements

At 31 December 2021:

			Tangible		Net current	Provisions
			fixed		assets/	/ long term
			assets	Investments	(liabilities)	liabilities	Total
			£	£	£	£	£
Unrestricted funds
General Fund			20,430	884,836	1,123,640	(104,559)	1,924,347
Designated	funds:
Board Houses Fund			12,909,768	-	-	-	12,909,768
Church House Fund			-	-	478,831	-	478,831
Densham Loan Fund			-	-	1,500	-	1,500
TM - Falmouth			-	-	169,170	-	169,170
TM Phase 2			-	-	426,417	-	426,417
Net Zero 2030			-	-	-	-	-
Energy grants			-	-	-	-	-
Clergy hardship fund			-	-	-	-	-
Lay staff cost of living payments			-	-	-	-	-
Mission grants			-	-	-	-	-
			__	__	__	__	__
			12,930,198	884,836	2,199,558	(104,559)	15,910,033
Restricted	funds
Pastoral Account			-	10,580,737	1,715,969	-	12,296,706
Diocesan Council for Mission & Unity			-	-	53,967	-	53,967
Education Trusts			-	1,069,444	52,956	-	1,122,400
Mission Fund			-	-	26,972	-	26,972
RME			-	-	27,723	-	27,723
Strategic Development Fund		TMF	-	-	23,574	-	23,574
Strategic Development Fund		Phase 2	-	-	(177)	-	(177)
Strategic Capacity Fund On the Way			-	-	-	-	-
Strategic Ministry Fund			-	-	-	-	-
Generous Giving Fund			-	-	-	-	-
Coronavirus Job Retention Grant			-	-	-	-	-
Lambeth Conference			-	-	-	-	-
Transition Funding			-	-	-	-	-
SC~~F~~ ~~D~~ir Change & Renewal			-	-	-	-	-
Energy Cost Grant			-	-	-	-	-
Clergy Hardship Fund			-	-	-	-	-
Archbishop	mission grant		-	-	-	-	-
Bishop Phillpotts Library			-	-	12,992	-	12,992
			-	948	5,603	-	6,551
			__	__	__	__	__
			-	11,651,129	1,919,579	-	13,570,708
Expendable endowment
Parsonage Houses Fund			45,297,023	-	-	-	45,297,023
Permanent endowment
Stipends Fund Capital Account			-	37,983,674	989,409	(2,565)	38,970,518
			__	__	__	__	__
Total endowments			45,297,023	37,983,674	989,409	(2,565)	84,267,541
Total			58,227,221	50,519,639	5,108,546	(107,124)	113,748,282

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

25. Revaluation reserve

The revaluation reserve is required by the Companies Act 2006 and represents the amount by which tangible fixed assets and investments exceed their historical cost.

Balance brought forward £ Board Houses Fund 3,494,784 Parsonage Houses Fund 32,032,958 _ 35,527,742 Comparative analysis for 2021 Balance brought forward £ Board Houses Fund 1,821,784 Parsonage Houses Fund 26,400,978 __ 28,222,762 26. Capital commitments _Capital expenditure Expenditure contracted for but not provided for: Church Schools (through Private Finance Initiative funding): Contract due to expire in 2031 Repairs to properties	Realised on transfers £ Unrealised surplus in year £ Realised on disposals £ Balance carried forward £ - 1,180,654 (83,930) 4,591,508 - 3,283,511 - 35,316,469 _ _ _ __ - 4,464,165 (83,930) 39,907,977 Realised on transfers £ Unrealised surplus in year £ Realised on disposals £ Balance carried forward £ - 5,631,980 - 3,494,784 - 1,673,000 - 32,032,958 _ _ _ __ - 7,304,980 - 35,527,742 2022 £ 2021 £ 51,584 56,904 138,396 121,427 _ _ 189,980 178,331	Realised on transfers £ Unrealised surplus in year £ Realised on disposals £ Balance carried forward £ - 1,180,654 (83,930) 4,591,508 - 3,283,511 - 35,316,469 _ _ _ __ - 4,464,165 (83,930) 39,907,977 Realised on transfers £ Unrealised surplus in year £ Realised on disposals £ Balance carried forward £ - 5,631,980 - 3,494,784 - 1,673,000 - 32,032,958 _ _ _ __ - 7,304,980 - 35,527,742 2022 £ 2021 £ 51,584 56,904 138,396 121,427 _ _ 189,980 178,331
		2021 £ 56,904 121,427 __ 178,331

Private Finance Initiative (PFI) payments are due in half-yearly instalments. The payments cover the charitable company (through the Diocese of Truro Education Trusts) share of the building costs, the costs of financing the scheme and a small share of ongoing maintenance costs. The amounts shown are the total costs over the period of the scheme.

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

27. Operating leases

Total commitments under non-cancellable operating leases are as follows:

Total commitments under non-cancellable operating leases are as follows:
Land and buildings Within one year of the balance sheet date In the second to fifth years inclusive of the balance sheet date Beyond 5 years of the Balance Sheet date Other operating leases Within one year of the balance sheet date In the second to fifth years inclusive of the balance sheet date	2022 £ 51,400 33,600 __ 85,000 885 885 __ 1,770	2021 £ 52,467 78,000 __ 130,467
		4,555 - __ 4,555

28. Pensions

Clergy

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2022: £635,136, 2021: £673,222), plus the figures highlighted in the table below as being recognised in the SoFA, giving a total charge of £635,136 for 2022 (2021: £673,222).

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

an average discount rate of 2.7% per annum;
Retail Price Index inflation of 3.6% per annum (and pension increases consistent with this);
CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards; increase in pensionable stipends in line with CPIH; and
mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% per annum and an allowance for 2020 data of 0% (ie w2020 = 0%).

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

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

Deficit repair contributions

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

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

28. Pensions (continued)

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

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

	2022	2021
	£	£
Balance sheet liability at 1 January	143,565	288,034
Deficit contribution paid	(82,320)	(144,469)
Interest cost (recognised in SoFA)	-	-
Remaining change to the Balance Sheet liability* (recognised in SoFA)	(61,245)	-
	__	__
Balance Sheet liability at 31 December	-	143,565

comprises change in agreed deficit recovery plan, and change in discount rate and assumptions between year-ends.

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

	December 2022	December 2021	December 2020
Discount rate	n/a.	0.0% p.a.	0.2% p.a.
Price inflation	n/a.	n/a.	3.1% p.a.
Increase to total pensionable payroll	n/a.	-1.5% p.a.	1.6% p.a.

The legal structure of the scheme is such that if another Responsible Body fails, the employer could become responsible for paying a share of that failed Responsible Body

Lay

The charitable company participates in the Church Workers Pension Fund (CWPF) which has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme (DBS)

The charitable company participates in the DBS section of the CWPF for lay staff. The scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers. The DBS section of the CWPF provides benefits for lay staff based on final pensionable salaries.

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

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

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2022: £23,319, 2021: £22,059), plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total credit of £82,183 for 2022 (2021: credit of £65,941).

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

28. Pensions (continued)

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

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

The next valuation is due at 31 December 2022.

Following the 2019 valuation, the Employer has entered into an agreement with the CWPF to pay a contribution rate of 45.2% of pensionable salary and expenses of £6,700 per year. In addition, deficit payments of £38,046 per year were agreed for 4.67 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool.

Due to the improvements in the projected funding position of the Fund, the Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplu

December 2022. A liability has been recognised at earlier dates.

The movement in the provision is set out below:

The movement in the provision is set out below:
	2022	2021
	£	£
Balance sheet liability at 1 January	143,559	269,605
Deficit contribution paid	(38,057)	(38,046)
Interest cost (recognised in SoFA)	2,000	1,000
Remaining change to the Balance Sheet liability* (recognised in SoFA)	(107,502)	(89,000)
	__	__
Balance Sheet liability at 31 December	-	143,559

comprises change in agreed deficit recovery plan and change in discount rate between year-ends.

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

	December 2022	December 2021	December 2020
Discount rate	0.00%	1.40%	0.50%

The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying

Pension Builder Scheme (PBS)

For employees who commenced employment after 1 February 2010, the charitable company participates in the PBS section of the CWPF for lay staff. The scheme is administered by the Church of England Pensions Board which holds the assets of the schemes separately from those of the Employer and the other participating employers.

The PBS of the CWPF is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefits schemes. The charitable company does not have any members in the Pension Builder 2014 scheme.

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable (2022: £113,596, 2021: £119,582).

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

28. Pensions (continued)

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

For the Pensions Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1% following improvements to the funding position over 2022. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of the failed

Balance Sheet reconciliation
	2022	2021
	£	£
Clergy pension liability at 31 December	-	143,565
Lay pension liability at 31 December	-	143,559
	__	__
Total pension liability at 31 December	-	287,124
Creditors: amounts falling due within one year	-	180,000
Creditors: amounts falling due after more than one year	-	107,124

29. Transactions with Trustees

The trustees derive no financial benefit for their services as trustees other than the re-imbursement of their out-of-pocket expenses. In 2021, 6 trustees were paid £12,744 (2021: 7 trustees £6,362). However, of the trustees listed on pages 13 and 14, the charitable company also remunerated the Archdeacons, the Chair of the House of Clergy and the clergy Archdeaconry Representatives in respect of their duties as clergy.

The charitable company enters into transactions, on a regular basis, with other autonomous organisations within the Church of England e.g. parishes ( m time to time, certain trustees may serve on committees of other bodies, or on the General Synod. It is not considered appropriate to report the detail of such transactions since no individual or group of individuals so serving has any significant influence over any material transactions.

30. Funds held on behalf of others

The charitable company is custodian trustee for the following investment assets held on behalf of Parochial Church Councils in accordance with the Parochial Church Councils (Powers) Measure 1956.

At valuation: Freehold land and buildings Other investments At cost: Freehold land and buildings Other investments	2022 £ 205,200 4,646,808 __ 4,852,008 6,200 2,215,150 __ 2,221,350	2021 £ 205,200 5,254,246 __ 5,459,446
		6,200 2,212,033 __ 2,218,233

The TDBF also acts as custodian trustee in relation to PCC property. These assets are held separately to those of the TDBF.

The charitable company also administers Devolved Formula Capital (DFC) grants (DFC grants provide the d church schools with direct funding to invest in their buildings, grounds and ICT equipment). Consequently, for those individual schools which have appointed the charitable company as their agent, the charitable company receives their DFC grants direct from the Department for Education and defrays qualifying expenditure according to their instructions. At 31

The Truro Diocesan Board Of Finance Limited (Limited By Guarantee)

Notes to the financial statements

30. Funds held on behalf of others (cont)

December 2022, the charitable company held £248,918 (2021: £194,412) in designated bank accounts separate from those of the charitable company.

31. Contingent liability

A boundary wall adjacent to a closed church partly collapsed in 2018. Ownership of the wall and who is responsible for its repair are not known. The costs of any repairs are also unknown but if the wall is found to be owned by the TDBF, the charitable company may be responsible for all or some of the repair costs.

32. Prior year comparative SOFA

			Unrestricted	Restricted	Endowments
			funds	funds	£	2021
			£	£		£
Income	and endowments from:
Donations:
Parish contributions			3,047,015	-	-	3,047,015
			906,168	-	-	906,168
Other			117,615	802,415	-	920,030
Charitable activities		statutory fees etc	266,471	-	-	266,471
Other activities			-	276,726	-	276,726
Investments			512,074	58,814	866,661	1,437,549
Other			1,426	-	11	1,437
			__	__	__	__
Total			4,850,769	1,137,955	866,672	6,855,396
Expenditure on:
Raising funds			131,040	-	168,148	299,188
Charitable activities			6,292,977	934,559	-	7,227,536
Other resources expended			-	-	-	-
			__	__	__	__
Total			6,424,017	934,559	168,148	7,526,724
Net incoming resources before realised gains			(1,573,248)	203,396	698,524	(671,328)
Net gains on investment assets			144,741	1,559,631	4,136,327	5,840,699
			__	__	__	__
Net incoming resources before transfers			(1,428,507)	1,763,027	4,834,851	5,169,371
Transfer between funds			825,966	(907,089)	81,123	-
			__	__	__	__
Net income for the year			(602,541)	855,938	4,915,974	5,169,371
Unrealised gains on revaluation			1,673,000	-	5,631,980	7,304,980
			__	__	__	__
Net movement in funds			1,070,459	855,938	10,547,954	12,474,351
Fund balances at 1 January 2021			14,839,574	12,714,770	73,719,587	101,273,931
			__	__	__	__
Fund balances at 31		December 2021	15,910,033	13,570,708	84,267,541	113,748,282