Company Registration No. 00049825 Charity No. 248330 

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

## FINANCIAL STATEMENTS 

31 December 2023 



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

|**Contents**|**Page**|
|---|---|
|Trustees Annual Report|1 - 15|
|Independent Audito<br>Report|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 2023_ 

_**lf restore, support, strengthen, and**_ 

## _1 Peter 5.10_ 

The trustees of The Truro Diocesan Board of Finance Limited (the TDBF), who are also the directors of the TDBF for the purposes of company law, continue to trust in the God of all grace, who church in Cornwall and the Isles of Scilly and two parishes in Devon all the gifts that we need, that it is God who sustains and strengthens us, and that by the right use of diocesan asse 

2023 saw the implementation of, and building on, the strategic work done in the preceding year to eighteen months with the four key headlines in this report being: 

- firstly, the trustees remain committed to **supporting strategic change** through the Diocesan Plan for Change and Renewal (based on plans made locally in each deanery) and the Assets Strategy, with clergy recruitment being the top operational priority; 

- secondly, income **contributed by parishes to the Mission and Ministry Fund** (MMF) is now intrinsically linked to the deanery plans and 2023 saw an increase in the collection rate to 90%; 

- thirdly, the overall **value of assets for which trustees are responsible** continued to perform strongly; and finally, the trustees continued to pursue a policy of **increasing direct support for parish ministry.** 

This strategic approach continues notwithstanding the transition of the diocesan bishop Philip Mounstephen to the See of Winchester during 2023. In the view of the trustees this change in leadership with the appointment of Hugh Nelson as acting diocesan bishop was not a reason to pause or otherwise divert from the work underway. 

## _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 were approved by the Episcopal College in 2022 but progress in implementing those plans to date has varied from deanery to deanery. The trustees remain committed to strategic change led through deanery planning and in 2023 the Diocesan Plan for Change and Renewal and the Assets Strategy were approved. 

2023 saw the Change and Renewal team fully staffed to support the implementation of deanery plans. 

During 2022 we noted a larger than usual number of vacant clergy posts putting real pressure on local ministry in too many places. 2023 saw that number increase further, clergy recruitment is the top operational priority. 

## _MMF income_ 

The budget for MMF contributions from parishes in 2023 was based on commitments described in deanery plans was able to discern the calling of the church locally and set this alongside their resources and the resources made available from the TDBF and national church. The MMF call is therefore now set as part of locally led strategic planning. In many places the local church believed that their previous call was unachievable, hence the call reduced in 2023 leading to a significant increase in the collection rate from 67% to 90%. This is a huge achievement and the trustees are immensely grateful for the faithful generosity of parish leaders and congregations. 

The local picture continues to be patchy with some deaneries and parishes performing far better than others and work continues with the deanery implementation teams to improve this. 

## _Value of assets_ 

The Balance Sheet reveals that the overall value of the TDBF 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 TDBF owns or oversees 122 of them. 

The Glebe estate has again shown resilience. Despite selling some glebe during 2023 where opportunities arose, the overall value of the glebe portfolio continues to increase. Whilst the yield on the largely agricultural estate remains relatively low, the overall performance of glebe on a total returns basis remains satisfactory. 

The value of investments in 2023 infrastructure investments, including renewable projects, which the trustees support holding, reduced the overall performance slightly. 

_Increased focus on support for parish ministry_ 

In 2023, reserves, along with some external funding, were used again 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; and resourcing of Church House based on deanery plans. 

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

_For the year ended 31 December 2023_ 

This work continues in 2024. 

The trustees present their annual report together with the audited financial statements for the year ended 31 December 2023. 

This combined report satisfies the legal requirements for: eport of a charitable company; and 

eport under the Charities Act 2011. 

## **Legal Objects** 

The overall objects of the TDBF are to support and 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 TDBF 

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 TDBF 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 (PCC) as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956. 

The strategic priorities of the TDBF are established by the trustees and 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** 

During 2023 the Diocesan Plan for Change and Renewal was approved by trustees and presented to Diocesan Synod. The Plan is based on the twelve deanery plans and describes the capacity and resources needed to implement them. In addition to this the Diocesan Plan for Change and Renewal also identifies key objectives which go beyond what individual parishes or deaneries can reasonably be expected to achieve. 

The Diocesan Plan for Change and Renewal describes three main themes or priorities emerging from deanery plans and shaping the work of the Board; 

significant changes in patterns of ministry; 

reversing the steep decline in the number of children and young people with whom we have significant engagement; and shifting resources towards ministry and mission in communities experiencing deprivation. 

In addition to those three headline themes five other significant priorities are clear in deanery plans and hence in diocesan planning: 

achieving the national ambition for cutting carbon emissions to net zero by 2030; 

supporting parishes in their stewardship of buildings, particularly church buildings; 

- a focus on how small churches are able to flourish; 

- changes to governance and leadership arising from changing patterns of ministry and to support mission; and achieving a sustainable financial model for local churches in partnership with the TDBF and the national church. 

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

_For the year ended 31 December 2023_ 

## **Activities and achievements during the year** 

Key strategic decisions taken by trustees in 2023 were: 

- initiating a trustee-led review of governance as part of a three-step sequence of external/officer/trustee-led reviews; approving two key strategic documents, the Diocesan Plan for Change and Renewal and the Assets Strategy. These represent a very significant strategic intervention for the medium to long term with 

   - the Diocesan Plan for Change and Renewal aggregating the twelve deanery plans, describing the support needed to implement those plans and introducing work at diocesan level to support fruitfulness and sustainability, and 

   - the Assets Strategy further shifting the TDBF resources towards actively supporting parish ministry and diocesan priorities. The strategy increases the planned use of £11m of reserves over 10 years to a total of £22m of reserves over 10 years; 

- adjustments to the call where there were ongoing clergy vacancies; 

- approval of the 2024 budget which makes provision for ongoing additional support for parishes in line with the assets strategy and earlier commitments; and 

- approval of a new Diocesan Board of Education strategy. 

During 2023 the trustees successfully aligned the use of assets with a coherent strategic plan. The plan is based on - been welcomed as offering real hope. These plans, both the Diocesan Plan for Change and Renewal and the plan for the use of assets, have been strongly endorsed by Diocesan Synod as well as at local level. 

Strong endorsement of plans still needs ongoing encouragement for implementation. Even where new proposals have been most enthusiastically embraced there continues to be a need for nurture and leadership, and in places where plans and planning have become a focus for disunity there is real ongoing challenge that is sometimes costly. 

The significance for the diocese of planning in this way and aligning resources to the extent currently proposed should not be underestimated. The ambition and scope of these changes have no initiative in the early 2000s and arguably well before that. 

The ongoing and developing capacity of the Church House team to promote, oversee and resource change, both from a project and programme management perspective, and from our operational capacity to support pathways and training for new patterns of ministry are strong and have proven to be responsive, flexible and increasingly effective. 2023 has not just been about building capacity, in many places we are seeing plans being implemented and the beginning of data that will in time show what is effective. 

This level of intervention introduces new and additional risks, but of course the intervention was not made in a stable or obviously flourishing context and the new risks and challenges must be set against the largely un-mitigated risks that already existed. 

Reversing the steep decline in the number of children and young people with whom we have significant engagement is a clear ambition in deanery plans, but early in 2023 trustees noted that taken together the deanery plans were not likely to lead to the sort of transformative change that we believe is now necessary. The decision was taken to allocate very significant funds from the TDBF reserves to additional work in this area and to seek national funding support. Work to draw up plans to achieve the overall ambition is still ongoing. 

Resourcing ministry in communities experiencing deprivation is a priority for the trustees. The 2023 and 2024 budgets allocate almost all of the national Lowest Income Communities Funding (LICF) to deaneries through the deanery planning process. The impact of these allocations is being seen in many areas already, in particular stipendiary ministry continues to be supported in places where it may otherwise have been withdrawn. 

The Diocesan Plan for Change and Renewal identifies the challenge and opportunity of buildings as a key element in the effectiveness of local leadership of the church. When framing the Assets Strategy £2m was allocated over ten years to support parishes in their stewards or the sole key to unlocking opportunity. Work to establish how best to use this funding is ongoing. 

During 2023 the trustees approved initial work to identify how small churches can be supported well to flourish, noting that national policy often assumes a capacity and profile that rarely matches rural churches serving sparse communities. 

In 2023 Diocesan Synod approved the Action Plan for the first 5 years to deliver the strategy to Cut Carbon, Cherish Creation and Speak Up. This laid out ambitious targets including how it will be financially resourced. £3 million has been committed in the Diocesan Assets Strategy to do this work, with the majority allocated to upgrading parsonages to cut carbon emissions and reduce costs for clergy. 

3 



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

_For the year ended 31 December 2023_ 

## **Activities and achievements during the year (continued)** 

Significant progress has been made by the property management team with nine properties (from zero) wit (Energy Efficiency Rating) and a coherent plan and growing capacity for carrying this work forward. The cost of the work is rising faster than anticipated and this will be monitored closely, and achieving the target by 2030 without unrealistic disruption to clergy may prove impossible. 

Grants of £145,000 have been secured from the national church to pay for Cut Carbon Support Officers who will work directly with churches and schools to implement changes that will cut carbon emissions and energy bills. 

There are 72 Creation Care Champions across the Diocese. These are passionate and dedicated volunteers who are driving change locally, supported by the Creation Care Network established by the Diocesan Environment Officer. 74% of churches reported on their energy use via the Energy Footprint Tool which means, for the first time, we have a solid dataset to monitor our progress towards Net Zero. 

The challenge of Net Zero and climate justice can sometimes feel unsurmountable, but it is our missional imperative as a church in this work, and set an example for others to follow. Leading change can be hard, and at parish, deanery, and diocesan level the cost of leadership can sometimes be high. It is hard to measure the costliness of leadership in 2023 but it has been considerable. 

Trustees recognised the importance of releasing parish clergy to be able to focus on their local responsibilities by approving the recruitment of Deans of Area to take up both the traditional rural dean responsibilities and key leadership roles in implementing changes to patterns of ministry. 

## _**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. 

particularly in the Advancement of Religion for the Public Benefit and have had regard to it in their administration of the TDBF **.** 

## _**Ordained, Licensed, and Commissioned Ministries**_ 

Providing and supporting clergy, particularly but not exclusively stipendiary clergy, is a core part of the work of the Diocesan Board of Finance. The Board also supports the discernment, training and ongoing flourishing of Readers and many other commissioned lay leaders and ministers. 

While the TDBF is responsible for funding of clergy stipend costs, the national cle Council, a charity which the TDBF reimburses monthly for the costs 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 TDBF 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 2023, even higher than the rate at the end of 2022: 

|Stipendiary incumbent status clergy<br>Self-supporting clergy<br>clergy<br>Stipendiary curates<br>Self-supporting curates<br>Readers<br>Clergy with Permission to Officiate (incl retired and non-retired)<br>Local Worship Leaders<br>Local Pastoral Ministers|2023<br>39<br>18<br>3<br>16<br>6<br>91<br>167<br>232<br>217|2022<br>54<br>10<br>6<br>16<br>15<br>88<br>148<br>260<br>223|
|---|---|---|



Deanery Plans describe approximately 65 incumbent status roles (some plans are under review locally but overall this number to change much). In common with many dioceses 2022/23 saw many more retirements and other moves than a typical year and with falling numbers of stipendiary clergy in post nationally, recruitment was challenging. During 2023 clergy 

4 



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

_For the year ended 31 December 2023_ 

## **Ordained, Licensed, and Commissioned Ministries (continued)** 

recruitment became the top operational priority for the trustees and senior leaders in the diocese, with an encouraging improvement in clergy appointed but not yet in-post at the end of 2023. The Board continues to monitor stipendiary clergy numbers closely including monitoring turnover and recruitment rates and considering appropriate incentives. Since year end six appointments have been made. 

In most benefices some version of the oversight/local ministry model is likely to be employed. This approach builds on models which have existed in the diocese for at least twenty years and which are known to be better suited to the more rural dispersed patterns of population in Cornwall and the Isles of Scilly. This model will require identifying, training and supporting oversight and local leaders as well as helping parishes to understand what this pattern of ministry will mean for them. The Board is allocating resources to this work and because its success will be vital for the flourishing of the church will also be working to understand where and how it works, and where it works less well. 

## _**Work with schools**_ 

During 2023, the Diocesan Board of Education (DBE) welcomed a new Interim Diocesan Director of Education (DDE), Lee Moscato, after Katie Fitzsimmons took up the position of DDE in the Diocese of Salisbury. Since year end Lee has been appointed DDE. 

a significant partner in improving he Vision 

for Education of the Church of England and our own vision for our diocese. 

A significant piece of work for the DBE, working with our new DDE and ensuring we commit fully to our ambition, was to develop and publish a two-year strategy our Strategic Commitments.  This piece of work has five core threads enabling our schools to flourish and embedding cross-directorate working within our diocese.  Within the strategic plan there is a focus on partnerships and how, through these, we can improve educational, societal and life affecting outcomes for all children in Cornwall and the Isles of Scilly: 

- Powerful Partnerships partnering with others to fulfil our commitment to improve outcomes and provision for pupils, adults and school communities; 

- Joining the DoTS (Diocese of Truro Schools) ensuring meaningful connections with and for all schools in our diocese; Community, Care and Connectedness to provide for the most vulnerable through the right people, in the right place with the right purpose to support the pastoral, well-being and spiritual needs of children, young people and their families; Worshipping Life of Schools and Communities to ensure flourishing, school communities that are committed and equipped to develop the spiritual life of the school and the community; and Creation Care to support schools in making a concerted effort 

multi-academy trusts (MATs).  Over the next two years, key colleagues within MATs will be trained and connected through networks to strengthen our work and reinforce our shared commitment towards flourishing futures for our schools and their communities.   This approach has informed our review of the structure of the Education Team which will evolve over the next three years to meet the needs of trusts and ensure efficient working. 

Training for school colleagues and leaders continues in areas such as Religious Education (RE), school leadership, curriculum and Statutory Inspection of Anglican and Methodist Schools (SIAMS) speakers and colleagues from within the national education team to support this.  Training has been shaped to meet the needs of our schools and trusts and has included, at the request of schools, spirituality training, equity, diversity and inclusion and continued governance support. 

The education landscape continues to evolve and, a core piece of work to reflect this was the publication of our Academisation Strategy.  This document sets out our vision that all schools join strong MATs but also gives transparency of the processes and expectations involved in achieving this. 

## _**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 atly values the considerable time given by all the committee members across the diocese in pursuit of the mission of the diocese. 

5 



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

_For the year ended 31 December 2023_ 

## **Financial Review** 

## _**Financial performance**_ 

The Statement of Financial Activities (SoFA) for the year on page 19 shows total income of £7,032k (2022: £7,261k) and total expenditure of £9,138k (2022: £8,184k), resulting in net expenditure of £2,106k (2022: £923k). 

The decrease in income of £229k is made up of £210k lower parish contributions, £232k less funding received from Archbishops Council, £40k less received for parochial fees and £31k fewer donations. This was in part offset by £141k higher investment income and £163k more realised gains on disposal of assets than in 2022. 

The MMF contributions given by parishes to fund the ministry costs of the diocese remain the main source of income for the diocese. In 2023 this income reduced by £210k to £2,864k (2022: £3,074k). The MMF collection rate significantly improved to 90.72%, from 67.57% in the previous year. The amount asked of parishes (the call) reduced in 2023 to reflect the amount in deanery plans (see note 3 on page 27). This is the main contributory factor to the improvement in the collection rate. 

rgest source of income at £1,714k, nearly 60% of the amount 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; no such funding was received in 2023. 

Expenditure increased by £954k. This is mainly due to resourcing ministry costing £632k more in 2023 when compared to 2022, with support for ministry and mission costing £193k more and expenditure on education costing £102k more. 

Within the resourcing ministry heading is the budget for property maintenance which was increased, and spent, in 2023, by £720k. The opportunity to carry out works (which include net zero works) while properties are empty continues. This increase was offset in part by £148k less being spent on clergy pensions. The clergy pension fund became fully funded in 2022 which led to a reduction in the contribution rate as deficit payments were no longer required to be paid. See note 28 on page 51 for more information. 

The increase in support for ministry and mission spend is mainly due to the full year effect of the cost of the Change and Renewal team, an increase of £301k, which is part funded by the Archbishops Council, with the remainder from the is also an increase of £91k in the central support costs. These increases are offset by a reduction in grants of £85k and lay pension grants to parishes, clergy and lay staff mainly to assist with the increased energy costs. This continued into early 2023 but no further funding was made available in late 2023. In 2022 there was a final lay pension movement of £107k which came about following the latest valuation which showed the scheme was fully funded. 

The property market in Cornwall, according to Land Registry data, weakened in 2023 with values reducing by an average of 3.5%. However, the value of the properties on the balance sheet have increased in 2023 by £2.3m. This has come about because the value of the works being carried out on some of our properties is increasing their value. This information comes from valuations on properties received when the quinquennial inspections are carried out. 

The value of investments held also increased in value in 2023 with an unrealised gain of £4.2m, being made up of £1.9m on glebe and £2.3m on listed and unlisted investments. 

This net gain resulted in the total fund balances again increasing from £115,536k to £119,923k. 

## _**Significant property transactions**_ 

In 2023 the TDBF sold eight properties, which were surplus to requirements, for net proceeds of £4.2m. No properties were purchased in the year. 

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 resources more effectively for the ministry of the church. 

Work on this strategy is continuing 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 £119,923k (2022: £115,536k). This includes properties totalling £61,101k (2022: £62,893k), 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. 

6 



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

_For the year ended 31 December 2023_ 

## _**Reserves Policy**_ 

## _Free reserves_ 

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

|Working Capital<br>Bridging loan for replacing parsonages<br>Provision for covering any unexpected deficit<br>Additional working capital for regular housing maintenance and<br>epairs<br>Funding any future developments arising from decisions taken at the<br>BDC<br>Loans to PCCs<br>Designated Funds<br>Diocesan Pastoral Account - Benefice Accounts<br>**Total**|General<br>Fund<br>£<br>Designated<br>Funds<br>£<br>Pastoral<br>Account<br>£<br>Total<br>£<br>520<br>-<br>-<br>520<br>-<br>-<br>1,500<br>1,500<br>500<br>-<br>-<br>500<br>-<br>-<br>250<br>250<br>100<br>-<br>-<br>100<br>500<br>-<br>-<br>500<br>-<br>12,860<br>-<br>12,860<br>-<br>-<br>4,000<br>4,000<br>**1,620**<br>**12,860**<br>**5,750**<br>**20,230**|
|---|---|



As at 31 December 2023 the amount of readily realisable assets in the General Fund required under the policy is £1,620k (2022: £1,700k), as per the table above. Actual free reserves as at 31 December 2023 amounted to £2,553k (2022: £1,544k) which is above the target amount and has come about as three surplus Board properties were 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 on page 43. At 31 December 2023 total designated reserves were £15,455k (2022: £15,575k). 

## _Restricted and endowment funds_ 

As set out in note 24 the TDBF holds and administers a number of restricted and endowment funds. As at 31 December 2023 restricted funds totalled £12,734k (2022: £10,883k) and endowment funds totalled £89,181k (2021: £87,534k). 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 (2022: £3,311k). 

## _**Fundraising Activities**_ 

The TDBF 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 2023. 

## _**Investment policies**_ 

Under the Articles of Association, the TDBF has the power to make any investment which the Trustees see fit.  The Investment Management Committee (the Committee) oversees the management of the TDBF 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 ce (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. 

7 



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

_For the year ended 31 December 2023_ 

## _**Investment policies (continued)**_ 

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 of specialist charity funds ensures that the appropriate level of expertise is employed at a reasonable cost.   The 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. 

Investments are held in two of the CBF Church of England Funds, representing 64.8% of the total value of the investments of £31,546k (excluding Glebe) at 31 December 2023. The remaining 35.2% are held in listed investments (see note 19 on page 40). 

The Committee has adopted an Industry standard benchmark, the MSCI PIMFA (formerly WMA) Balanced Index for performance comparisons. The benchmark rose by 7.3% in capital terms in 2023 and the TDBF combined portfolio (excluding glebe investments) rose by 7.9% in the same period. The yield on the portfolio was 3.0%. 

At present it is estimated that just over 10% of the portfolio is invested in renewable funds or projects. During 2022 a process started to try and calculate the carbon footprint of the TDBF portfolio and it proved quite challenging to obtain data. Some progress was made in 2023 with a view to tracking progress towards net zero 2030 despite investments being outside the scope for the Church of England Net Zero 2030 agenda. It is estimated that in 2022 our carbon emissions from underlying scopes 1 and 2 emissions were 629 tCO2e. This is unaudited and is based on unaudited reporting by companies and funds that may be both erroneous and misinterpreted. There is also a small element of estimating where no data was available. It is hoped this reporting will improve for 2023 data. Some of the investments are in renewables and other activities help footprints but these savings have not been reported as offsetting the carbon footprint of our other investments. 

, although the cost of living crisis and the aftermath of the jump in energy process has put the entire net zero and ESG agenda under pressure, with accusations of greenwashing abounding in the media. The 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, believing that a responsible approach by management to its business soon feeds through to profits and share prices. The Committee continue to believe the portfolio is well positioned to benefit when the current trends are reversed and a less febrile environment returns. 

The trustees consider these investment returns to be satisfactory and is 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 on stipends and other direct clergy costs. The TDBF decided to make a transfer from unapplied total return to unrestricted income funds in both 2022 and 2023. 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, the trustees and the an analysis prepared by 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 2023 is indicated in note 12 on page 34. 

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

8 



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

_For the year ended 31 December 2023_ 

## **Principal risks and uncertainties** 

The responsible for the identification, mitigation and or management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is subject to review by the trustees on a regular 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; `o` proactive approach to those not making MMF contributions implemented and parishes are being contacted; `o` mechanism for agreeing cost of ministry 

   - the Next Steps On the Way process works with deaneries to enable fruitfulness and sustainability for parishes; 

   - `o` annual budgeting; `o` 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 with parishes and contactless giving; 

   - 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 the development of future vision and plans for each benefice; 

   - support provided to parishes with drafting their Profile, and with the 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 that cannot be managed without impacting on property services and knock on delivery to ministry. 

   - 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; 

   - `o` Diocesan Safeguarding Team in place to provide support, guidance and training; and 

   - training strategy and annual training programme (including virtual training) in place that aligns with national guidance; 

   - `o` Diocesan Safeguarding trainer and network of volunteer trainers in place; 

   - training information reported to the TDBF and Diocesan Safeguarding Advisory Panel (DSAP); and 

   - `o` training for senior leaders. 

- Environment: aspirations limited by legislation or national policy. 

   - Environment Action Plan approved at November 2023 Diocesan Synod; and 

   - the Diocesan Environment Board monitors progress being made by each group to implement its part in the overall environment strategy and action plan. 

## **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 TDBF 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 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. 

9 



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

_For the year ended 31 December 2023_ 

## **Summary Information about the Structure of the Church of England (continued)** 

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). 

9 to co-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. 

The Church of England Pensions 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 co-operation both with Commissioners. 

## _**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, the Isles of Scilly, plus two parishes 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 PCC, which is made up of the incumbent as chair, the churchwardens and a number of elected and ex officio members. Each PCC is a charity, and all are curren 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. 

10 



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

_For the year ended 31 December 2023_ 

## _**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 Memorandum and Articles of Association.  The TDBF is registered with the Charity Commission (No. 248330). 

Every member of Diocesan Synod is a member of the TDBF, 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 nsists of mittee who are also the trustees and directors of the TDBF 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; oversight of expenditure by bodies in receipt of Dio 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 TDBF has responsibility for the day-to-day financial management of the diocese. 

ocesan Council are the following statutory committees of the TDBF: 

- 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 TDBF; 

- 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; and 

11 



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

_For the year ended 31 December 2023_ 

## _**Bi**_ 

- Diocesan Board of Education (DBE), which is responsible, under the Diocesan Board of Education Measure 2020, for the promotion of education in the diocese, being education which is consistent with the faith and practice of the Church of England; the promotion of religious education and religious worship in schools in the diocese; and 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. 

rship is shown in the Administrative section on pages 14 and 15. some of whom Council, but they are not directors of the TDBF for the purposes of company law. 

All 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). 

Co and fair view of the state of affairs of the TDBF and of the incoming resources and application of resources, including the income and expenditure, of the TDBF 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 TDBF will continue in operation. 

any time the financial position of the TDBF 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 TDBF and hence for taking reasonable steps to prevent and detect fraud and other irregularities. 

luded 

. 

## _**Statement of disclosure to auditor**_ 

So far as each member of TDBF auditor is unaware, and 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 TDBF 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 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 TDBF. The Diocesan Secretary is given specific and general delegated authority to deliver the business of the TDBF in accordance with the policies framed by the Trustees. 

12 



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

_For the year ended 31 December 2023_ 

## _**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 TDBF 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 TDBF does not control them, and they are segregated from the TDBF 

whose market value amounted to £5.6m at 31 December 2023 (2022: £5.1m), are available from the TDBF on request, and are summarised in note 30 on page 54. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by the solicitors, Veale Wasbrough Vizards LLP. 

## _**Funds held on behalf of schools**_ 

The TDBF administers Devolved Formula Capital (DFC) grants for the d urch schools. At 31 December 2023, it held £239,307 (2022: £248,918) in designated bank accounts separate from those of the TDBF. 

## **Related parties** 

The TDBF has to comply with Measures passed by the General Synod of the Church of England and is required to make certain ouncil towards the running costs of the National Church. The stipends of the Diocesan and Suffragan Bishops are borne by the Church Commissioners and are therefore not reflected in these financial statements. 

## _**Parochial Church Councils (PCCs)**_ 

The TDBF 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 TDBF and at Diocesan Synod level through representations to those bodies and through the input of their Deanery Synods. 

## _**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 lay staff who joined the TDBF 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 TDBF 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 TDBF 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 on page 51 to the financial statements. 

## **Appointment of solicitors** 

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

13 



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

_For the year ended 31 December 2023_ 

## **Appointment of auditors** 

A resolution to appoint Francis Clark LLP as auditors to the TDBF will be proposed at the Annual General Meeting. 

## **Administrative Information** 

## **Trustees** 

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)** The Rt. Revd. P I Mounstephen (resigned 10 October 2023) **Chairman of the Truro Diocesan Board of** Mr M J Sturgess **Finance (elected by the Members) Ex officio** The Rt. Revd. H Nelson The Very Revd. S Robinson (The Dean) The Ven. P D Bryer (Archdeacon of Cornwall) (died 14 October 2023) 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 Mr A P Hicks Archdeaconry of Bodmin The Revd. P R Holley The Revd. R J Terry The Revd. J W Foot (resigned 6 June 2023) Mr R B Smith **Bishop s Appointments** Mrs C E Irwin Dr A G Thompson The Revd. T Folland The Revd. S Morgan (resigned 30 April 2023) Mrs A Corbett Company Secretary The Revd. Canon S Cade Registered Office Church House Woodlands Court Truro Business Park Threemilestone Truro TR4 9NH Telephone 01872-274351 Email address info@truro.anglican.org Website www.trurodiocese.org.uk Company registration number 00049825 (England and Wales) Charity registration number 248330 Diocesan registrar Mr J Moule, Narrow Quay House, Narrow Quay, Bristol Solicitors Veale Wasbrough Vizards LLP, Narrow Quay House, Narrow Quay, Bristol Auditors Haysmacintyre LLP, 10 Queen Street Place, London 

14 



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

_For the year ended 31 December 2023_ 

## **Administrative Information (continued)** 

Bankers National Westminster Bank PLC, St Nicholas Street, Truro Investment managers 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 Glebe estate manager Savills, Lemon Street, Truro Property manager Savills, Lemon Street, Truro 

## **Approval of this 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 the trustees on 25 April 2024 and was signed on its behalf by: 



**The Revd. Canon S Cade** Company Secretary 

**Mr M J Sturgess** Chairman of the Board 

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

15 



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

## **INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF THE TRURO 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 2023 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 2023 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 responsibilities under those standards are further described in the Au section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includi 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** 

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, or a period of at least twelve months from when the financial statements are authorised for issue. 

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

## **Other information** 

The trustees are responsible for the other information. 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: 

      - report prepared for the 

- purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

   - e been prepared in accordance with 

- 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). 

16 



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

## **REPORT 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** 

page 12), 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. 

e as a 

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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. 

tements (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; 

- e 

   - tect irregularities; 

- 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. 

17 



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

## **INDEPENDENT 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 website at: www.frc.org.uk/auditorsresponsibilities. 

## **Use of our report** 

ance with Chapter 3 of Part 16 of the fullest extent permitted by law, , 


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 10 July 2024 

10 Queen Street Place London EC4R 1AG 

18 



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

## _Statement of Financial Activities_ 

_For the year ended 31 December 2023_ 

||||||**Unrestricted**|**Restricted**||||
|---|---|---|---|---|---|---|---|---|---|
||||||**funds**|**funds**|**Endowments**|**2023**|2022|
|||||**Notes**|**£**|**£**|**£**|**£**|£|
|**Income**|**and endowments from:**|||3||||||
|Donations:||||||||||
|Parish contributions|||||2,863,661|-|-|**2,863,661**|3,073,895|
||||||963,413|740,667|-|**1,704,080**|1,945,784|
|Other|||||105,478|61,797|-|**167,275**|188,484|
|Charitable activities<br>||statutory fees|||220,442|-|-|**220,442**|259,772|
|Other activities||||4|-|183,275|-|**183,275**|203,905|
|Investments||||5|609,032|70,399|970,386|**1,649,817**|1,509,344|
|Other||||6|28,451|-|214,527|**242,978**|79,771|
||||||________|________|________|**________**|________|
|**Total**|||||4,790,477|1,056,138|1,184,913|**7,031,528**|7,260,955|
|**Expenditure on:**||||||||||
|Raising funds||||7|158,332|-|171,191|**329,523**|302,621|
|Charitable activities||||8|7,352,177|1,455,880|-|**8,808,057**|7,881,868|
|Other resources expended||||9|-|-|-|**-**|-|
||||||________|________|________|**________**|________|
|**Total**|||||7,510,509|1,455,880|171,191|**9,137,580**|8,184,489|
|**Net incoming / (outgoing) resources before**|||||(2,720,032)|(399,742)|1,013,722|**(2,106,052)**|(923,534)|
|**realised gains / (losses)**||||||||||
|Net gains / (losses) on|||investment assets||21,496|1,115,681|3,203,908|**4,341,085**|(1,753,076)|
||||||________|________|________|**________**|________|
|**Net incoming / (outgoing) resources before**|||||(2,698,536)|715,939|4,217,630|**2,235,033**|(2,676,610)|
|**transfers**||||||||||
|Transfer between funds||||13|3,780,820|1,135,309|(4,916,129)|**-**|-|
||||||________|________|________|**________**|________|
|**Net income for the year**|||||1,082,284|1,851,248|(698,499)|**2,235,033**|(2,676,610)|
|Unrealised (losses) / gains on revaluation||||14|(193,397)|-|2,345,552|**2,152,155**|4,464,165|
||||||________|________|________|**________**|________|
|**Net movement in funds**||||15|888,887|1,851,248|1,647,053|**4,387,188**|1,787,555|
|Fund balances at 1 January 2023|||||17,118,665|10,882,940|87,534,232|**115,535,837**|113,748,282|
||||||________|________|________|**________**|________|
|**Fund balances at 31**||**December 2023**|||18,007,552|12,734,188|89,181,285|**119,923,025**|115,535,837|



19 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Income and Expenditure Account,_ 

_For the year ended 31 December 2023_ 

|_Income and Expenditure Account,_<br>_For the year ended 31 December 2023_|||
|---|---|---|
||**2023**|2022|
||**£**|£|
|**Total incoming resources**|**5,846,615**|6,251,303|
|**Resources expended**|**(8,966,389)**|(8,080,152)|
||________|________|
|**Operating deficit for the year**|**(3,119,774)**|(1,828,849)|
|Net gains / (losses) on investments|**1,137,177**|(1,581,072)|
||________|________|
|**Net (expenditure) for the year**|**(1,982,597)**|(3,409,921)|
|**Other comprehensive income**|||
|Revaluation of fixed assets|**(193,397)**|1,180,654|
|Net assets transferred from endowments|**4,916,129**|750,131|
||________|________|
|**Total comprehensive income / (expenditure)**|**2,740,135**|(1,479,136)|



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. 

20 



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

## _Balance Sheet_ 

## _at 31 December 2023_ 

|||**2023**|**2022**|
|---|---|---|---|
||**Notes**|**£**|£|
|**Fixed assets**||||
|Tangible assets|18|**61,101,166**|**62,892,983**|
|Investments|19|**51,935,723**|**48,183,050**|
|||**________**|**________**|
|||**113,036,889**|**111,076,033**|
|**Current assets**||||
|Debtors|20|**659,475**|**1,025,922**|
|Cash at bank and in hand|21|**7,281,025**|**4,348,303**|
|||**________**|**________**|
|||**7,940,500**|**5,374,225**|
|**Creditors: amounts falling due within one year**||||
|Other creditors|22|**(1,054,364)**|**(914,421)**|
|||**________**|**________**|
|**Net current assets**||**6,886,136**|**4,459,804**|
|**Net assets**||**119,923,025**|**115,535,837**|
|**Funds employed**||||
|**Unrestricted funds**||**18,007,552**|**17,118,665**|
|**Restricted funds**||**12,734,188**|**10,882,940**|
|||**________**|**________**|
|Total unrestricted and restricted funds||**30,741,740**|**28,001,605**|
|**Expendable endowment**||||
|Parsonage Houses Fund||**47,117,618**|**48,674,473**|
|**Permanent endowments**||||
|Stipends Fund Capital Account||**42,063,667**|**38,859,759**|
|||________|________|
|Total endowments||**89,181,285**|**87,534,232**|
|**Total funds employed**|24.4|**119,923,025**|**115,535,837**|
|The**revaluation reserve**included in the above||||
|funds is:|25|**39,406,216**|**39,907,977**|



The cash flow statement on page 22 and the notes on pages 23 to 55 form part of these financial statements. These financial statements were approved by the Board of Trustees and authorised for issue on 25 April 2024 and signed on its behalf by: 

**Mr M J Sturgess** Chairman of the Board 

Company Registration No. 00049825 


21 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Cash Flow Statement_ 

_For the year ended 31 December 2023_ 

|_Cash Flow Statement_<br>_For the year ended 31 December 2023_|||||
|---|---|---|---|---|
|||**2023**||2022|
||**£**|**£**|£|£|
|**Net cash outflow from operating activities (see below)**||**(2,954,711)**||(2,472,739)|
|**Cash flows from investing activities**|||||
|Dividends, interest and rent from investments|**1,122,776**||995,352||
|Proceeds from the sale of:|||||
|Tangible fixed assets|**4,246,126**||505,272||
|Fixed asset investments|**630,935**||600,565||
|Purchase of:|||||
|Tangible fixed assets for the use of the Board of Finance|**(69,881)**||(636,667)||
|Fixed asset investments|**(42,523)**||(17,052)||
||**________**||**________**||
|**Net cash provided by investing activities**||**5,887,433**||1,447,470|
|||**________**||________|
|**Change in cash and cash equivalents in the reporting**||**2,932,722**||(1,025,269)|
|**period**|||||
|Cash and cash equivalents at 1 January 2023||**4,348,303**||5,373,572|
|||**________**||**________**|
|Cash and cash equivalents at 31 December 2023||**7,281,025**||4,348,303|
|**Reconciliation of net movements in funds to net cash flow**|**from operating**|**activities**|||
|Net movement in funds for the year ended 31 December 2023||**4,387,188**||1,787,554|
|**Adjustments for:**|||||
|Depreciation charges||**10,705**||9,570|
|Dividends, interest and rent from investments||**(1,122,776)**||(995,353)|
|Profit on sale of functional assets||**(242,978)**||(79,771)|
|Gains on investments and revaluation of fixed assets||**(6,493,240)**||(2,711,089)|
|(Decrease)/increase in loans to parishes||**(72,000)**||19,500|
|Decrease/(increase) in debtors||**438,447**||(188,291)|
|Increase/(decrease) in creditors||**139,943**||(27,735)|
|Defined benefit pension costs less contributions payable||**-**||(289,124)|
|Defined benefit pension finance costs||**-**||2,000|
|||**________**||________|
|Net cash (used in) operating activities||**(2,954,711)**||(2,472,739)|
|**Analysis of cash and cash equivalents**|||||
|Cash in hand||**7,281,025**||4,348,303|



22 



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

## _Notes to the financial statements_ 

## 1. **Constitution** 

The Truro Diocesan Board of Finance Limited 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 TDBF are liable to contribute a sum not exceeding £10 per member towards the debts and liabilities of the TDBF 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 TDBF 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 TDBF has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the TDBF 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 SoFA when the TDBF 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 TDBF** (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. 

23 



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

## _Notes to the financial statements_ 

## **(b)  Expenditure (continued)** 

**Charitable expenditure** 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 TDBF, 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.** Th 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 TDBF 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 TDBF 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 TDBF 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 TDBF is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation 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 TDBF Orders specifying the application of any sale proceeds to support other Church 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 TDBF in trust. When approval for distribution is eventually granted, the TDBF share of the proceeds is transferred to The Diocese of Truro Education Trusts which is accounted for as a restricted fund in these financial statements. 

24 



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

## _Notes to the financial statements_ 

## **(c) Tangible fixed assets and depreciation (continued)** 

## **Closed churches** 

Churches closed for public worship are not i 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** 

Financial instruments are recognised in the balance sheet when the TDBF becomes party to the contractual 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 objects. They include funds which have been set aside 

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

25 



## 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 TDBF, 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. The 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 TDBF acts as trustee and controls the management and use of the funds, are included in the TDBF where the TDBF 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** 

In the application of the accounting policies, the trustees are required to make judgements, estimates and 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. 

26 



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

## _Notes to the financial statements_ 

## 3. **Donations** 

## **Parish contributions** 

|**Parish contributions**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|Endowments|**2023**|
||funds|funds|£|**£**|
||£|£|||
|Current year call|3,156,491|-|-|**3,156,491**|
|Shortfall in contributions|(338,168)|-|-|**(338,168)**|
||________|________|________|**________**|
||2,818,323|-|-|**2,818,323**|
|Receipts for previous year|45,338|-|-|**45,338**|
||________|________|________|________|
||2,863,661|-|-|**2,863,661**|



Current year MMF receipts represent 89.29% of the total call (2022: 66.48%) or, when receipts for previous years are included, 90.72% of the total call (2022: 67.57%). 

|Unrestricted<br>funds<br>£<br>Lowest Income Communities Fund<br>(LICF)<br>916,315<br>47,098<br>Strategic Development Funding (SDF)<br> Falmouth<br>-<br>Strategic Development Funding (SDF)<br> Phase 2<br>-<br>RMF (formerly RME)<br>-<br>Generous Giving Funding<br>-<br>Strategic Capacity Funding (SCF)<br>Director of Change and Renewal<br>-<br>Strategic Ministry Funding (SMF)<br>-<br>Strategic Capacity Funding (SCF)<br> On<br>the Way<br>-<br>Transition Funding<br>-<br>Energy cost grants<br>-<br>Clergy hardship grants<br>-<br>Archbishops mission grant<br>-<br>NZ Carbon Capacity Building Starter<br>grant<br>-<br>PCR2<br>-<br>Diocesan Investment Programme grant<br>-<br>________<br>963,413<br> **Other donations**<br>Unrestricted<br>funds<br>£<br>Benefact Trust (previously AllChurches<br>Trust)<br>91,000<br>Boiler upgrade Scheme (BUS)<br>-<br>Contribution towards church schools:<br>Department for Education<br>-<br>Donations from individuals<br>7,918<br>Other contributions<br>6,560<br>________<br>105,478|Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>-<br>-<br>-<br>162,917<br>-<br>219,188<br>-<br>41,135<br>-<br>45,800<br>-<br>45,600<br>-<br>121,629<br>-<br>-<br>-<br>47,937<br>-<br>-<br>-<br>-<br>-<br>(5,191)<br>-<br>15,000<br>-<br>14,288<br>-<br>32,364<br>-<br>________<br>________<br>740,667<br>-<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>-<br>10,000<br>-<br>48,557<br>-<br>3,240<br>-<br>-<br>-<br>________<br>________<br>61,797<br>-|**2023**<br>**£**<br>**916,315**<br>**47,098**<br>**162,917**<br>**219,188**<br>**41,135**<br>**45,800**<br>**45,600**<br>**121,629**<br>**-**<br>**47,937**<br>**-**<br>**-**<br>**(5,191)**<br>**15,000**<br>**14,288**<br>**32,364**<br>**________**<br>**1,704,080**|
|---|---|---|
|||**2023**<br>**£**<br>**91,000**<br>**10,000**<br>**48,557**<br>**11,158**<br>**6,560**<br>**________**<br>**167,275**|



27 



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

## _Notes to the financial statements_ 

## 3. **Donations (continued)** 

**Comparative analysis for 2022** 

## **Parish contributions** 

|**Parish contributions**|||
|---|---|---|
|Unrestricted<br>funds<br>£<br>Current year call<br>4,549,440<br>Shortfall in contributions<br>(1,525,042)<br>________<br>3,024,398<br>Receipts for previous year<br>49,497<br>________<br>3,073,895<br>Unrestricted<br>funds<br>£<br>Lowest Income Communities Fund<br>(LICF)<br>880,221<br>42,465<br>Strategic Development Funding (SDF)<br> Falmouth<br>-<br>Strategic Development Funding (SDF)<br> Phase 2<br>-<br>RMF (formerly RME)<br>-<br>Generous Giving Funding<br>-<br>Strategic Capacity Funding (SCF)<br>Director of Change and Renewal<br>-<br>Strategic Ministry Funding (SMF)<br>-<br>Strategic Capacity Funding (SCF)<br> On<br>the Way<br>-<br>Transition Funding<br>-<br>Energy cost grants<br>-<br>Clergy hardship grants<br>Archbishops mission grant<br>-<br>-<br>NZ Carbon Capacity Building Starter<br>grant<br>-<br>PCR2<br>-<br>Diocesan Investment Programme grant<br>-<br>________<br>922,686<br> **Other donations**<br>Unrestricted<br>funds<br>£<br>Benefact Trust (previously AllChurches<br>Trust)<br>104,000<br>Boiler upgrade Scheme (BUS)<br>-<br>Contribution towards church schools:<br>Department for Education<br>Donations from individuals<br>22,233<br>Other contributions<br>10,670<br>________<br>136,903|Restricted<br>funds<br>£<br>Endowments<br>£<br>**2022**<br>**£**<br>-<br>-<br>**4,549,440**<br>-<br>-<br>**(1,525,042)**<br>________<br>________<br>**________**<br>-<br>-<br>**3,024,398**<br>-<br>-<br>**49,497**<br>________<br>________<br>**________**<br>-<br>-<br>**3,073,895**<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>**2022**<br>**£**<br>-<br>-<br>**880,221**<br>-<br>-<br>**42,465**<br>152,001<br>-<br>**152,001**<br>225,499<br>-<br>**225,499**<br>87,703<br>-<br>**87,703**<br>46,933<br>-<br>**46,933**<br>14,870<br>-<br>**14,870**<br>117,494<br>-<br>**117,494**<br>32,340<br>-<br>**32,340**<br>33,108<br>-<br>**33,108**<br>269,000<br>-<br>**269,000**<br>34,150<br>10,000<br>-<br>-<br>**34,150**<br>**10,000**<br>-<br>-<br>**-**<br>-<br>-<br>**-**<br>-<br>-<br>**-**<br>________<br>________<br>**________**<br>1,023,098<br>-<br>**1,945,784**<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>**2022**<br>**£**<br>-<br>-<br>**104,000**<br>-<br>-<br>**-**<br>47,872<br>-<br>**47,872**<br>3,709<br>-<br>**25,942**<br>-<br>-<br>**10,670**<br>________<br>________<br>**________**<br>51,581<br>-<br>**188,484**||
|||**2022**<br>**£**<br>**880,221**<br>**42,465**<br>**152,001**<br>**225,499**<br>**87,703**<br>**46,933**<br>**14,870**<br>**117,494**<br>**32,340**<br>**33,108**<br>**269,000**<br>**34,150**<br>**10,000**<br>**-**<br>**-**<br>**-**<br>**________**<br>**1,945,784**|
|||**2022**<br>**£**<br>**104,000**<br>**-**<br>**47,872**<br>**25,942**<br>**10,670**<br>**________**<br>**188,484**|



28 



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

## _Notes to the financial statements_ 

|4.<br>**Other activities**<br>Unrestricted<br>funds<br>£<br>Rents from Parsonage houses<br>-<br>Recoverable costs<br>-<br>________<br>-<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Rents from Parsonage houses<br>-<br>Recoverable costs<br>-<br>________<br>-<br>5.<br>**Investment income**<br>Unrestricted<br>funds<br>£<br>Dividends and interest<br>499,580<br>Rents:<br>Board properties<br>109,452<br>Glebe estate<br>-<br>Redundant schools<br>-<br>________<br>609,032<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Dividends and interest<br>358,007<br>Rents:<br>Board properties<br>115,915<br>Glebe estate<br>-<br>Redundant schools<br>-<br>________<br>473,922|Restricted<br>funds<br>£<br>Endowments<br>£<br>154,261<br>-<br>29,014<br>-<br>________<br>________<br>183,275<br>-<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>193,905<br>-<br>10,000<br>-<br>________<br>________<br>203,905<br>-<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>33,953<br>589,243<br>-<br>-<br>-<br>381,143<br>36,446<br>-<br>________<br>________<br>70,399<br>970,386<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>32,716<br>604,630<br>-<br>-<br>-<br>361,630<br>36,446<br>-<br>________<br>________<br>69,162<br>966,260|**2023**<br>**£**<br>**154,261**<br>**29,014**<br>**________**<br>**183,275**|
|---|---|---|
|||**2022**<br>**£**<br>**193,905**<br>**10,000**<br>**________**<br>**203,905**|
|||**2023**<br>**£**<br>**1,122,776**<br>**109,452**<br>**381,143**<br>**36,446**<br>**________**<br>**1,649,817**|
|||**2022**<br>**£**<br>**995,353**<br>**115,915**<br>**361,630**<br>**36,446**<br>**________**<br>**1,509,344**|



29 



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

## _Notes to the financial statements_ 

|6.<br>**Other incoming resources**<br>Unrestricted<br>funds<br>£<br>Realised gains on disposal of assets for the<br>TDBF<br>28,451<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Realised gains on disposal of assets for the<br>own use<br>36,379<br>7.<br>**Fund raising costs**<br>Unrestricted<br>funds<br>£<br>Glebe:<br>Outgoings<br>-<br>Management charges<br>-<br>Pension scheme interest<br>-<br>Let vacant parsonages (management<br>charges)<br>-<br>Central support costs<br>158,332<br>________<br>158,332<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Glebe:<br>Outgoings<br>-<br>Management charges<br>-<br>Pension scheme interest<br>2,000<br>Let vacant parsonages (management<br>charges)<br>189<br>Central support costs<br>134,850<br>________<br>137,039|Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>214,527<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>43,392<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>115,560<br>-<br>55,631<br>-<br>-<br>-<br>-<br>-<br>-<br>________<br>________<br>-<br>171,191<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>114,868<br>-<br>50,714<br>-<br>-<br>-<br>-<br>-<br>-<br>________<br>________<br>-<br>165,582|**2023**<br>**£**<br>**242,978**|
|---|---|---|
|||**2022**<br>**£**<br>**79,771**|
|||**2023**<br>**£**<br>**115,560**<br>**55,631**<br>**-**<br>**-**<br>**158,332**<br>**________**<br>**329,523**|
|||**2022**<br>**£**<br>**114,868**<br>**50,714**<br>**2,000**<br>**189**<br>**134,850**<br>**________**<br>**302,621**|



30 



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

## _Notes to the financial statements_ 

## 8. **Charitable activities** 

||||||||Unrestricted|Restricted|Endowments|**2023**|
|---|---|---|---|---|---|---|---|---|---|---|
||||||||funds|funds|£|**£**|
||||||||£|£|||
|Training|||for Ministry||||157,529|-|-|**157,529**|
|National|||Church responsibilities||||92,113|-|-|**92,113**|
|Grants and provisions|||||||16,222|-|-|**16,222**|
|Mission||Agency pension contributions|||||5,043|-|-|**5,043**|
|Retired clergy housing costs (CHARM)|||||||62,399|-|-|**62,399**|
||||||||________|________|________|**________**|
||||||||333,306|-|-|**333,306**|
||||||||________|________|________|**________**|
|**Resourcing Ministry**|||||||||||
|Parish ministry:|||||||||||
|Stipends and national||||insurance|||1,874,952|121,629|-|**1,996,581**|
|Pension|||contributions||||458,280|-|-|**458,280**|
|Clergy salary|||||||38,984|-|-|**38,984**|
|Clergy settlements|||||||63,900|-|-|**63,900**|
|Home/parish mileage|||||||10,665|-|-|**10,665**|
|Sundry clergy related||||costs|||36,398|-|-|**36,398**|
|Housing|||costs||||1,776,987|263,165|-|**2,040,152**|
|Property management charges|||||||153,294|-|-|**153,294**|
|Resettlement and associated costs|||||||82,947|-|-|**82,947**|
|Other payments (including training)|||||||298,336|-|-|**298,336**|
|Central support costs|||||||219,546|-|-|**219,546**|
||||||||________|________|________|**________**|
||||||||5,014,289|384,794|-|**5,399,083**|
||||||||________|________|________|**________**|
|**Support for ministry**||||**and mission**|||||||
|Mission||Fund grants|||||434,464|-|-|**434,464**|
|Diocesan support for ordinands in training|||||||101,392|65,411|-|**166,803**|
|Training|||and development||||48,598|-|-|**48,598**|
|DMPC functions|||||||145,481|-|-|**145,481**|
|Specialist ministries|||||||39,578|20,767|-|**60,345**|
|Safeguarding|||||||141,284|14,288|-|**155,572**|
|Social|Responsibility||||||-|-|-|**-**|
|Diocesan Advisory Committee|||||||36,918|-|-|**36,918**|
||||||||49,443|-|-|**49,443**|
|Faculty fees|||||||14,970|-|-|**14,970**|
|Communications|||||||66,408|-|-|**66,408**|
|Closed church expenditure|||||||-|31,938|-|**31,938**|
||||||||6,208|-|-|**6,208**|
|Central support costs|||||||500,304|-|-|**500,304**|
|Lay staff cost of living||||payments|||1,765|-|-|**1,765**|
|Movement in lay pension|||||scheme deficit||-|-|-|**-**|
|Generous Giving Advisors|||||||-|45,800|-|**45,800**|
|Next Steps On the Way|||||||254,991|125,901|-|**380,892**|
|Bad debt provision|||||||(20,000)|-|-|**(20,000)**|
|Transforming Mission||||(TM)<br> Falmouth|||(20,331)|170,243|-|**149,912**|
|Transforming Mission||||(TM)<br> Phase 2|||145,901|218,851|-|**364,752**|
||||||||________|________|________|**________**|
||||||||1,947,374|693,199|-|**2,640,573**|
||||||||________|________|________|**________**|
|**Expenditure on Education**|||||||||||
|Support|||for church schools and parishes||||57,208|377,887|-|**435,095**|
||||||||________|________|________|**________**|
||||||||7,352,177|1,455,880|-|**8,808,057**|



31 



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

## _Notes to the financial statements_ 

8. **Charitable activities (continued)** 

## **Comparative analysis for 2022** 

||||||||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**|
|Next Steps On the Way|||||||-|80,318|-|**80,318**|
|Bad debt provision|||||||20,000|-|-|**20,000**|
|Transforming Mission||||(TM)<br> Falmouth|||81,896|152,391|-|**234,287**|
|Transforming Mission||||(TM)<br> 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**|



32 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

9. **Other resources expended** 

|Unrestricted<br>funds<br>£<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>Realised loss on disposal of assets for the<br>-<br>-<br>-<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>Realised loss on disposal of assets for the<br>-<br>-<br>-<br>**Analysis of expenditure including allocation of support costs**<br>Activities<br>undertaken<br>directly<br>£<br>Grant<br>funding of<br>activities<br>£<br>Support<br>costs<br>£<br>Raising funds<br>171,191<br>-<br>158,332<br>Charitable activities:<br>-<br>333,306<br>-<br>Resourcing parish ministry<br>5,104,322<br>75,215<br>219,546<br>Support for ministry and mission<br>1,496,735<br>643,534<br>500,304<br>Education<br>435,095<br>-<br>-<br>________<br>________<br>________<br>7,207,343<br>1,052,055<br>878,182<br>**Comparative analysis for 2022**<br>Activities<br>undertaken<br>directly<br>£<br>Grant<br>funding of<br>activities<br>£<br>Support<br>costs<br>£<br>Raising funds<br>167,771<br>-<br>134,850<br>Charitable activities:<br>-<br>333,306<br>-<br>Resourcing parish ministry<br>4,474,350<br>111,193<br>181,438<br>Support for ministry and mission<br>1,513,411<br>525,409<br>409,463<br>Education<br>333,298<br>-<br>-<br>________<br>________<br>________<br>6,488,830<br>969,908<br>725,751||**2023**<br>**£**<br>**-**<br>**2022**<br>**£**<br>**-**<br>**Total**<br>**costs**<br>**2023**<br>**£**<br>**329,523**<br>**333,306**<br>**5,399,083**<br>**2,640,573**<br>**435,095**<br>**________**<br>**9,137,580**|
|---|---|---|
||||
|||**Total**<br>**costs**<br>**2022**<br>**£**<br>**302,621**<br>**333,306**<br>**4,766,981**<br>**2,448,283**<br>**333,298**<br>**________**<br>**8,184,489**|



## 10. **Analysis of expenditure including allocation of support costs** 

33 



## 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<br>Governance:<br>External audit<br>Registrar and Chancellor<br>Synodical costs<br>**Comparative analysis for 2022**<br>Central administration<br>Governance:<br>External audit<br>Registrar and Chancellor<br>Synodical costs|Unrestricted Funds<br>General<br>£<br>Designated<br>£<br>852,382<br>-<br>25,800<br>-<br>49,443<br>-<br>6,208<br>-<br>________<br>________<br>933,833<br>-<br>Unrestricted Funds<br>General<br>£<br>Designated<br>£<br>706,431<br>-<br>19,320<br>-<br>50,403<br>-<br>5,877<br>-<br>________<br>________<br>782,031<br>-|Restricted<br>Endowment<br>Funds<br>£<br>Funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>________<br>________<br>-<br>-<br>Restricted<br>Endowment<br>Funds<br>£<br>Funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>________<br>________<br>-<br>-|**Total**<br>**2023**<br>**£**<br>**852,382**<br>**25,800**<br>**49,443**<br>**6,208**<br>**________**<br>**933,833**|
||||**Total**<br>**2022**<br>**£**<br>**706,431**<br>**19,320**<br>**50,403**<br>**5,877**<br>**________**<br>**782,031**|



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|**2023**|**2022**|
|---|---|---|---|---|---|---|---|---|---|
|||||||£|£|**£**|**£**|
|**From**|**unrestricted funds for National Church**|||||||||
|**responsibilities:**||||||||||
|C|||||5|-|333,306|**333,306**|**333,306**|
||||||____|________|_______|**________**|**________**|
|**From**|**unrestricted funds:**|||||||||
|Resettlement and first incumbency grants<br>16||||||42,610|-|**42,610**|**45,886**|
|Doing Church Differently grants|||||-|-|-|**-**|**7,562**|
|Ordinands in training|||||3|22,298|-|**22,298**|**19,438**|
|Clergy for training|||||14|4,607|-|**4,607**|**5,069**|
|Mission initiatives in parishes|||||102|-|633,534|**633,534**|**203,874**|
|Clergy hardship grants|||||7|5,700|-|**5,700**|**6,650**|
||||||____|________|________|**________**|**________**|
||||||142|75,215|633,534|**708,749**|**288,479**|
||||||____|________|________|**________**|**________**|
|**From**|**restricted funds for various purposes:**|||||||||
|Mission initiatives in parishes|||||-|-|-|**-**|**295,973**|
|Overseas mission work|||||2|-|10,000|**10,000**|**18,000**|
|Clergy hardship grants|||||-|-|-|**-**|**34,150**|
||||||____|________|________|**________**|**________**|
||||||2|-|10,000|**10,000**|**348,123**|
||||||______|________|________|**________**|**________**|
||||||149|75,215|976,840|**1,052,055**|**969,908**|



34 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

## 12. **Analysis of grants made (continued)** 

## **Comparative analysis for 2022** 

|**Comparative analysis for 2022**|||
|---|---|---|
|Number<br>Individuals<br>£<br>Institutions<br>£<br>**From unrestricted funds for National Church**<br>**responsibilities:**<br>Contributions to<br>5<br>-<br>333,306<br>____<br>________<br>_______<br>**From unrestricted funds:**<br>Resettlement and first incumbency grants<br>18<br>45,886<br>-<br>Doing Church Differently grants<br>1<br>-<br>7,562<br>Ordinands in training<br>2<br>19,438<br>-<br>Clergy for training<br>22<br>5,069<br>-<br>Mission initiatives in parishes<br>77<br>-<br>203,874<br>Clergy hardship grants<br>7<br>6,650<br>-<br>______<br>________<br>________<br>127<br>77,043<br>211,436<br>____<br>________<br>________<br>**From restricted funds for various purposes:**<br>Mission initiatives in parishes<br>124<br>-<br>295,973<br>Overseas mission work<br>3<br>-<br>18,000<br>Clergy hardship grants<br>38<br>34,150<br>-<br>____<br>________<br>________<br>165<br>34,150<br>313,973<br>______<br>________<br>________<br>297<br>111,193<br>858,715<br>13.<br>**Transfer between funds**<br>Unrestricted<br>funds<br>£<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>Property repairs<br>1,638,626<br>(1,638,626)<br>-<br>Payments to acquire property<br>-<br>(45,537)<br>45,537<br>Receipts from sale of property<br>-<br>2,819,472<br>(2,819,472)<br>Total Return spend<br>799,194<br>-<br>(799,194)<br>Transfer Parsonages to Board<br>properties<br>1,343,000<br>-<br>(1,343,000)<br>________<br>________<br>________<br>3,780,820<br>1,135,309<br>(4,916,129)<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>Property repairs<br>1,131,861<br>(1,131,861)<br>-<br>Payments to acquire property<br>-<br>(93,939)<br>93,939<br>Receipts from sale of property<br>-<br>43,392<br>(43,392)<br>Total Return spend<br>800,678<br>-<br>(800,678)<br>Transfer Parsonages to Board<br>properties<br>-<br>-<br>-<br>________<br>________<br>________<br>1,932,539<br>(1,182,408)<br>(750,131)|**2022**<br>**£**<br>**333,306**<br>**________**<br>**45,886**<br>**7,562**<br>**19,438**<br>**5,069**<br>**203,874**<br>**6,650**<br>**________**<br>**288,479**<br>**________**<br>**295,973**<br>**18,000**<br>**34,150**<br>**________**<br>**348,123**<br>**________**<br>**969,908**|**2021**<br>**£**<br>**346,149**<br>**________**<br>**53,067**<br>**(675)**<br>**8,209**<br>**4,148**<br>**57,219**<br>**-**<br>**________**<br>**121,968**<br>**________**<br>**-**<br>**18,000**<br>**-**<br>**________**<br>**18,000**<br>**________**<br>**486,117**|
||||



35 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

|14.<br>**Other gains and losses on revaluation**<br>Unrestricted<br>funds<br>£<br>Revaluation of land and buildings<br>(193,397)<br>**Comparative analysis for 2022**<br>Unrestricted<br>funds<br>£<br>Revaluation of land and buildings<br>1,180,654<br>15.<br>**Net movement in funds**<br>This is stated after charging:<br>Staff costs (note 16)<br>Redundancy costs<br>remuneration<br>- audit fee (excluding VAT)<br>- other services<br>Realised losses on disposals of tangible fixed assets<br>Operating leases - land and buildings<br>- other<br>Depreciation of tangible fixed assets<br>This is stated after crediting:<br>Realised gains on disposals of tangible fixed assets<br>Realised gains on disposals of investment fixed assets|Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>2,345,552<br>Restricted<br>funds<br>£<br>Endowments<br>£<br>-<br>3,283,511|**2023**<br>**£**<br>**2,152,155**<br>**2022**<br>**£**<br>**4,464,165**<br>**2023**<br>**£**<br>**1,598,307**<br>**-**<br>**21,500**<br>**2,050**<br>**-**<br>**60,992**<br>**885**<br>**10,705**<br>**2023**<br>**£**<br>**242,978**<br>**115,062**|2022<br>£<br>1,436,416<br>14,561<br>16,100<br>-<br>-<br>57,867<br>5,105<br>9,570|
|---|---|---|---|
||||2022<br>£<br>79,771<br>338,215|



36 



## 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<br>Social security costs<br>Pension contributions<br>The average number of persons employed during the year:<br>Administration and financial management<br>Communications<br>Discipleship & Ministry, Stewardship<br>Safeguarding & inclusion<br>Education<br>Transforming Mission<br>Change & Renewal|**2023**<br>**£**<br>**1,306,831**<br>**119,818**<br>**171,658**<br>**________**<br>**1,598,307**<br>**2023**<br>**17**<br>**1**<br>**12**<br>**3**<br>**2**<br>**8**<br>**5**<br>**________**<br>**48**|2022<br>£<br>1,183,185<br>116,316<br>136,915<br>________<br>1,436,416<br>2022<br>15<br>1<br>13<br>4<br>2<br>8<br>1<br>________<br>44|
|---|---|---|



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

|Administration and financial management<br>Communications<br>Discipleship & Ministry, Stewardship<br>Safeguarding & inclusion<br>Education<br>Transforming Mission<br>Change & Renewal<br>Remuneration of higher paid employees were as follows:<br>£60,001 - £70,000|**2023**<br>**14.6**<br>**1.2**<br>**8.3**<br>**2.0**<br>**2.3**<br>**4.7**<br>**3.7**<br>**________**<br>**36.8**<br>**2023**<br>**£**<br>**1**|2022<br>13.3<br>0.9<br>8.6<br>2.6<br>2.6<br>6.3<br>0.5<br>**________**<br>**34.8**|
|---|---|---|
|||2022<br>£<br>1|



## **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 2023 they were: 

Diocesan Secretary and Company Secretary Simon Cade Director of Ministry Jonathan Rowe (post made redundant June 2022) Director of Education Katie Fitzsimmons (resigned 31 August 2023) Lee Moscato (appointed 1 September 2023) Director of Finance and Assets Sophie Eddy 

For these 3 (2022: 4) employees remuneration and pensions amounted to £242,567 (2022: £272,393). Expenses were £1,839 (2022: £1,893). 

37 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

## 16. **Staff costs (continued)** 

## **Related party transaction** 

The son of a member of the key management personnel worked for the TDBF and earned £1,850 (2022: £1,096). 

## **nts** 

No trustee received any remuneration for services as trustee. 7 trustees (2022: 6) received travelling and out of pocket expenses, totalling £16,153 (2022: £12,744) 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 TDBF during the year: 

|uring 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 TDBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than Bishops and cathedral staff. The TDBF 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 TDBF paid an average of 66 (2022: 76) stipendiary clergy (including 2 Archdeacons) as office holders holding parochial or diocesan appointments in the diocese, and the costs were as follows: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Stipends|**1,861,983**|2,041,564|
|National insurance contributions|**152,455**|169,786|
|Pension costs|**482,435**|635,136|
|Apprenticeship Levy|**8,472**|9,231|
||**________**|________|
||**2,505,345**|2,855,717|



The stipends of the Diocesan Bishop and Suffragan Bishops were paid and funded by the Church Commissioners and are in the range £40,967 - £52,671 (2022 range £38,648 - £49,690). The annual rate of stipend, funded by the TDBF, paid to Archdeacons in 2023 was in the range £36,461 - £38,649 (2022 range £36,100 - £36,461) and other clergy who were Trustees were paid in the range £27,149 - £29,303 (2022 range £25,265 - £27,644). 

## 17. **Taxation** 

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

38 



## 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 2023|14,207,650|48,674,473|**62,882,123**|
|Additions|12,953|45,537|**58,490**|
|Disposals|(1,398,204)|(2,604,944)|**(4,003,148)**|
|Revaluation adjustment|(193,397)|2,345,552|**2,152,155**|
|Transfer|1,343,000|(1,343,000)|**-**|
||________|________|**________**|
|**At 31 December 2023**|13,972,002|47,117,618|**61,089,620**|



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 TDBF assets in accordance with the accounting policies. Land and buildings at 31 December 2023 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_<br>At 1 January 2023<br>Additions<br>Disposals<br>Transfer<br>**At 31 December 2023**<br>**Leasehold premises**<br>_At cost_<br>At 1 January 2023<br>Additions<br>**At 31 December 2023**<br>_Depreciation_<br>At 1 January 2023<br>Charge for year<br>**At 31 December 2023**<br>_Net book value_<br>**At 31 December 2023**<br>At 31 December 2022|**Board**<br>**property**<br>**£**<br>**Parsonage**<br>**houses**<br>**£**<br>9,616,142<br>13,358,004<br>12,953<br>45,537<br>(752,469)<br>(596,763)<br>358,375<br>(358,375)<br>________<br>________<br>9,235,001<br>12,448,403|**Total**<br>**£**<br>**22,974,146**<br>**58,490**<br>**(1,349,232)**<br>**-**<br>**________**<br>**21,683,404**<br>**£**<br>28,218<br>11,391<br>________<br>**39,609**<br>26,172<br>3,614<br>________<br>**29,786**<br>**9,823**<br>2,046|**Total**<br>**£**<br>**22,974,146**<br>**58,490**<br>**(1,349,232)**<br>**-**<br>**________**<br>**21,683,404**<br>**£**<br>28,218<br>11,391<br>________<br>**39,609**<br>26,172<br>3,614<br>________<br>**29,786**<br>**9,823**<br>2,046|
|---|---|---|---|
||||**£**<br>28,218<br>11,391<br>_______<br>**39,609**<br>26,172<br>3,614<br>_______<br>**29,786**<br>**9,823**<br>2,046|
|||_||
|||||
|||||



## 18.2 **Leasehold premises** 

39 



## The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

## 18. **Tangible fixed assets (continued)** 

## 18.3 **Office equipment** 

|18.3|**Office equipment**|||
|---|---|---|---|
||||**£**|
||_At cost_|||
||At 1 January 2023||98,057|
||Additions||-|
||Disposals||-|
||||________|
||**At 31 December 2023**||**98,057**|
||_Depreciation_|||
||At 1 January 2023||89,243|
||Disposals||-|
||Charge for year||7,091|
||||________|
||**At 31 December 2023**||**96,334**|
||_Net book value_|||
||**At 31 December 2023**||**1,723**|
||At 31 December 2022||8,814|
|18.4|**Total tangible fixed assets**|||
|||**2023**|2022|
|||**£**|£|
||_Net book value_|||
||Freehold land and buildings|**61,089,620**|62,882,123|
||Leasehold premises|**9,823**|2,046|
||Office equipment|**1,723**|8,814|
|||**________**|________|
|||**61,101,166**|62,892,983|



## 19. **Fixed asset investments** 

||**Freehold**||||
|---|---|---|---|---|
||**investment**||||
||**property**||||
||**(Glebe and**|**Listed**|**Unlisted**||
||**other)**|**investments**|**investments**|**Total**|
||**£**|**£**|**£**|**£**|
|_At valuation_|||||
|At 1 January 2023|18,945,000|10,909,384|18,328,666|**48,183,050**|
|Additions|42,523|-|-|**42,523**|
|Disposals|(515,874)|-|-|**(515,874)**|
|Revaluation adjustment|1,918,351|175,717|2,131,956|**4,226,024**|
|Transfer|-||||
||________|________|________|**________**|
|**At 31 December 2023**|20,390,000|11,085,101|20,460,622|**51,935,723**|



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 TDBF 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. 

40 



The Truro Diocesan Board Of Finance Limited (Limited By Guarantee) _Notes to the financial statements_ 

## 20. **Debtors** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|_Amounts falling due within one year_|||
|Trade debtors|**26,018**|7,391|
|Concessionary loans to parishes and others|**113,500**|40,000|
|Other debtors including prepayments and accrued|**479,957**|937,031|
|income|||
||**________**|________|
||**619,475**|984,422|
|_Amounts falling due after more than one year_|||
|Concessionary loans to parishes and others|**40,000**|41,500|
||**________**|________|
||**659,475**|1,025,922|



Concessionary interest free loans are made to parishes with no security. At the year end there were amounts committed to of £110,000 (2022: £10,000). The repayment terms of the loans range from 6 months to 5 years. 

## 21. **Cash at bank and in hand** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|The CBF Church of England Deposit Fund|**5,902,282**|4,033,568|
|COIF Charities Deposit Fund|**361,197**|338,630|
|Barclays Bank PLC|**31,039**|28,939|
|National Westminster Bank PLC|**1,528,025**|707,333|
|Savills Client Account|**284,816**|55,507|
|Cash in hand|**25**|571|
||**________**|________|
||**8,107,384**|5,164,548|
|Less: attributable to local trust funds|**(826,359)**|(81,245)|
||**________**|________|
||**7,281,025**|4,348,303|



41 



## 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<br>Other creditors (including taxation and social security)<br>Accruals and deferred income (note 23)<br>23.<br>**Deferred income**<br>Deferred income is included within:<br>Creditors due within one year<br>Deferred income as at 1 January 2023<br>Released from previous years<br>Resources deferred in the year<br>Deferred income as at 31 December 2023|**2023**<br>**£**<br>**572,030**<br>**67,936**<br>**414,398**<br>**________**<br>**1,054,364**<br>**2023**<br>**£**<br>**206,460**<br>**253,281**<br>**(170,203)**<br>**123,382**<br>________<br>**206,460**|2022<br>£<br>295,830<br>115,020<br>503,591<br>________<br>914,441|
|---|---|---|
|||2022<br>£<br>253,281|
|||412,272<br>(410,355)<br>251,364,<br>________<br>253,281|



Included within deferred income of £206,460 (2022: £253,281) are the following balances: £62,392 (2022: £56,393) in respect of glebe deferred income, £89,000 (2022: £82,065) in respect of glebe service charges, £0 (2022: £47,937) received in advance of entitlement and £23,143 (2022: £40,934) received on behalf of schools. 

42 



## 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 2023:<br>**Balance**<br>**brought**<br>**forward**<br>**£**<br><br>**Unrestricted funds**<br>General Fund<br>1,544,244<br>_Designated funds:_<br>Board Houses Fund<br>14,207,650<br>Church House Fund<br>435,631<br>Densham Loan Fund<br>-<br>TM - Falmouth<br>87,274<br>TM<br> Phase 2<br>275,889<br>Net Zero 2030<br>350,000<br>Energy grants<br>90,000<br>Clergy hardship fund<br>-<br>Lay staff cost of living payments<br>-<br>Mission grants<br>127,977<br>Clergy Settlements<br>-<br>Next Steps on the Way<br>-<br>________<br>17,118,665<br>**Restricted funds**<br>Pastoral Account<br>9,909,726<br>Diocesan Council for Mission &<br>Unity<br>39,611<br>Education Trusts<br>862,134<br>Mission Fund<br>-<br>RMF (formerly RME)<br>23,111<br>SDF<br> TM Falmouth<br>23,184<br>SDF<br> Phase 2<br>(470)<br>SCF<br> On the Way<br>-<br>Strategic Ministry Fund<br>-<br>Generous Giving Fund<br>-<br>Transition Funding<br>-<br>SC~~F~~<br>Dir Change & Renewal<br>-<br>Energy Cost Grant<br>-<br>Clergy Hardship Fund<br>-<br>Archbishop mission grant<br>6,889<br>Bishop Phillpotts Library<br>12,301<br>Bishop Phillpotts Prize Fund<br>6,454<br>NZ Carbon Capacity Building<br>Starter grant<br>-<br>Boiler Upgrade Scheme<br>-<br>Past Case Review 2 (PCR2)<br>-<br>Diocesan Investment<br>Programme (DIP) grant<br>-<br>________<br>10,882,940<br>**Expendable endowment**<br>Parsonage Houses Fund<br>48,674,473<br>**Permanent endowment**<br>Stipends Fund Capital Account<br>38,859,759<br>________<br>**Total endowments**<br>87,534,232<br>**Total**<br>115,535,837|**Incoming**<br>**resources**<br>**£**<br>**Resources**<br>**expended**<br>**£**<br>**Gains and**<br>**losses**<br>**£**<br>**Transfers**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>4,790,477<br>(6,855,091)<br>21,496<br>3,052,327<br>**2,553,453**<br>-<br>28,450<br>(193,397)<br>(70,701)<br>**13,972,002**<br>-<br>(93,672)<br>-<br>-<br>**341,959**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>20,331<br>-<br>20,000<br>**127,605**<br>-<br>(145,901)<br>-<br>405,342<br>**535,330**<br>-<br>-<br>-<br>(350,000)<br>**-**<br>-<br>(84,658)<br>-<br>(5,342)<br>**-**<br>-<br>(5,700)<br>-<br>5,700<br>**-**<br>-<br>(1,765)<br>-<br>1,765<br>**-**<br>-<br>(258,382)<br>-<br>357,608<br>**227,203**<br>-<br>(63,900)<br>-<br>63,900<br>**-**<br>-<br>(50,221)<br>-<br>300,221<br>**250,000**<br>________<br>________<br>________<br>________<br>________<br>4,790,477<br>(7,510,509)<br>(171,901)<br>3,780,820<br>**18,007,552**<br>183,275<br>(285,103)<br>1,054,802<br>1,135,309<br>**11,998,009**<br>3,240<br>(10,044)<br>-<br>-<br>**32,807**<br>118,956<br>(377,887)<br>60,857<br>-<br>**664,060**<br>-<br>-<br>-<br>-<br>**-**<br>41,135<br>(65,410)<br>-<br>-<br>**(1,164)**<br>162,917<br>(170,243)<br>-<br>-<br>**15,858**<br>219,188<br>(218,851)<br>-<br>-<br>**(133)**<br>-<br>-<br>-<br>-<br>**-**<br>121,629<br>(121,629)<br>-<br>-<br>**-**<br>45,800<br>(45,800)<br>-<br>-<br>**-**<br>47,937<br>(47,937)<br>-<br>-<br>**-**<br>45,600<br>(45,600)<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>(5,191)<br>(1,698)<br>-<br>-<br>**-**<br>-<br>(490)<br>-<br>-<br>**11,811**<br>-<br>-<br>22<br>-<br>**6,476**<br>15,000<br>(8,536)<br>-<br>-<br>**6,464**<br>10,000<br>(10,000)<br>-<br>-<br>**-**<br>14,288<br>(14,288)<br>-<br>-<br>**-**<br>32,364<br>(32,364)<br>-<br>-<br>**-**<br>________<br>________<br>________<br>________<br>**________**<br>1,056,138<br>(1,455,880)<br>1,115,681<br>1,135,309<br>**12,734,188**<br>214,527<br>-<br>2,345,552<br>(4,116,934)<br>**47,117,618**<br>970,386<br>(171,191)<br>3,203,908<br>(799,195)<br>**42,063,667**<br>________<br>________<br>________<br>________<br>**________**<br>1,184,913<br>(171,191)<br>5,549,460<br>(4,916,129)<br>**89,181,285**<br>7,031,528<br>(9,137,580)<br>6,493,240<br>-<br>**119,923,025**|
|---|---|



43 



## 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 2022: 

|**Balance**<br>**brought**<br>**forward**<br>**£**<br><br>**Unrestricted funds**<br>General Fund<br>1,924,347<br>_Designated funds:_<br>Board Houses Fund<br>12,909,768<br>Church House Fund<br>478,831<br>Densham Loan Fund<br>1,500<br>TM<br>Falmouth<br>169,170<br>TM<br>Phase 2<br>Net Zero 2030<br>Energy grants<br>Clergy hardship fund<br>Lay staff cost of living payments<br>426,417<br>-<br>-<br>-<br>-<br>Mission grants<br>-<br>Clergy Settlements<br>-<br>Next Steps on the Way<br>-<br>________<br>15,910,033<br>**Restricted funds**<br>Pastoral Account<br>12,296,706<br>Diocesan Council for Mission<br>& Unity<br>53,967<br>Education Trusts<br>1,122,400<br>Mission Fund<br>26,972<br>RMF (formerly RME)<br>27,723<br>SDF- TM Falmouth<br>23,574<br>SDF<br> Phase 2<br>(177)<br>SC~~F~~<br>On the Way<br>-<br>Strategic Ministry Fund<br>-<br>Generous Giving Fund<br>-<br>Transition Funding<br>-<br>SC~~F~~<br>Dir Change & Renewal<br>-<br>Energy Cost Grant<br>-<br>Clergy Hardship Fund<br>-<br>Archbishop mission grant<br>-<br>Bishop Phillpotts Library<br>12,992<br>Bishop Phillpotts Prize Fund<br>6,551<br>NZ Carbon Capacity Building<br>Starter grant<br>-<br>Boiler Upgrade Scheme<br>-<br>Past Case Review 2 (PCR2)<br>-<br>Diocesan Investment Programme<br>(DIP) grant<br>-<br>________<br>13,570,708<br>**Expendable endowment**<br>Parsonage Houses Fund<br>45,297,023<br>**Permanent endowment**<br>Stipends Fund Capital Account<br>38,970,518<br>________<br>**Total endowments**<br>84,267,541<br>**Total**<br>113,748,282|**Incoming**<br>**resources**<br>**£**<br>**Resources**<br>**expended**<br>**£**<br>**Gains and**<br>**losses**<br>**£**<br>**Transfers**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>4,903,557<br>(6,244,448)<br>(91,724)<br>1,052,512<br>**1,544,244**<br>-<br>36,379<br>1,180,654<br>80,849<br>**14,207,650**<br>-<br>(43,200)<br>-<br>-<br>**435,631**<br>-<br>-<br>-<br>(1,500)<br>**-**<br>-<br>(81,896)<br>-<br>-<br>**87,274**<br>-<br>-<br>-<br>-<br>-<br>(150,528)<br>(24,782)<br>(139,693)<br>(6,650)<br>(36,854)<br>-<br>-<br>-<br>-<br>-<br>-<br>374,782<br>229,693<br>6,650<br>36,854<br>**275,889**<br>**350,000**<br>**90,000**<br>**-**<br>**-**<br>-<br>(24,722)<br>-<br>152,699<br>**127,977**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>________<br>________<br>________<br>________<br>________<br>4,903,557<br>(6,716,394)<br>1,088,930<br>1,932,539<br>**17,118,665**<br>203,905<br>(37,563)<br>(1,370,914)<br>(1,182,408)<br>**9,909,726**<br>3,709<br>(18,065)<br>-<br>-<br>**39,611**<br>117,034<br>(258,963)<br>(118,337)<br>-<br>**862,134**<br>-<br>(26,972)<br>-<br>-<br>**-**<br>87,703<br>(92,315)<br>-<br>-<br>**23,111**<br>152,001<br>(152,391)<br>-<br>-<br>**23,184**<br>225,499<br>(225,792)<br>-<br>-<br>**(470)**<br>32,340<br>(32,340)<br>-<br>-<br>**-**<br>117,494<br>(117,494)<br>-<br>-<br>**-**<br>46,933<br>(46,933)<br>-<br>-<br>**-**<br>33,108<br>(33,108)<br>-<br>-<br>**-**<br>14,870<br>(14,870)<br>-<br>-<br>**-**<br>269,000<br>(269,000)<br>-<br>-<br>**-**<br>34,150<br>(34,150)<br>-<br>-<br>**-**<br>10,000<br>(3,111)<br>-<br>-<br>**6,889**<br>-<br>(691)<br>-<br>-<br>**12,301**<br>-<br>-<br>(97)<br>-<br>**6,454**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>________<br>________<br>________<br>________<br>**________**<br>1,347,746<br>(1,363,758)<br>(1,489,348)<br>(1,182,408)<br>**10,882,940**<br>43,392<br>-<br>3,283,511<br>50,547<br>**48,674,473**<br>966,260<br>(104,337)<br>(172,004)<br>(800,678)<br>**38,859,759**<br>________<br>________<br>________<br>________<br>**________**<br>1,009,652<br>(104,337)<br>3,111,507<br>(750,131)<br>**87,534,232**<br>7,260,955<br>(8,184,489)<br>2,711,089<br>-<br>**115,535,837**|
|---|---|



44 



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 TDBF. 

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 TDBF 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 contributions to assist with financing the Transforming Mission project in Falmouth, Camborne, Truro, St Austell and Liskeard. There is a restricted fund for this work which is funded by the Archbishops Council. 

The Net Zero 2030 fund is paying for Net Zero works on the TDBF 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. 

The mission grants fund is for mission initiatives included in the deanery plans. 

with financing the Change and Renewal team. There is a restricted fund (DIP) for this work which is funded by the Archbishops Council. 

## **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 TDBF) 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 Formation (RMF) (formerly Resourcing Ministerial Education (RME)) is a grant, received from the Archbishops Council to fund some elements of 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. 

45 



## 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)** 

## **Restricted funds (continued)** 

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 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. 

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

The Net Zero (NZ) Carbon Capacity Building Starter grant is grant funding received from the Archbishops Council and is being used to resource net zero work in our schools and church buildings. 

The Boiler Upgrade Scheme is grant funding received from national government to assist with costs of upgrading boiler in our properties. 

The PCR2 funding is additional grant funding received from the Archbishops Council to assist with funding the costs associated with the PCR2 review which was carried out in 2020. 

The Diocesan Investment Programme (DIP) grant is funding received from the Archbishops Council to assist with financing the Change and Renewal team. 

## **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. An analysis of the fund is given overleaf. 

46 



## 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)** 

## **Endowment funds (continued)** 

||Trust for|Unapplied|Total|
|---|---|---|---|
||Investment|Total Return|Endowment|
||£|£|£|
|At 1 January 2022|9,138,228|29,975,855|39,114,083|
|Movements in the year:||||
|Investment return: dividends and interest|-|966,260|966,260|
|Investment return: unrealised gains / (losses)|-|(172,004)|(172,004)|
|Investment return: fund raising costs|-|(165,582)|(165,582)|
|Funding of clergy pension deficit contributions|-|(82,320)|(82,320)|
|Transfer from Stipends Fund Capital Account to designated||(800,678)|(800,678)|
|fund|-|||
|Indexation on base value of investment|960,665|(960,665)|-|
||________|________|________|
|Net movements in 2022|960,665|(1,214,989)|(254,324)|
||________|________|________|
|At 1 January 2023|10,098,893|28,760,866|38,859,759|
|Movements in the year:||||
|Investment return: dividends and interest|-|970,386|970,386|
|Investment return: unrealised gains / (losses)|-|3,203,908|3,203,908|
|Investment return: fund raising costs|-|(171,191)|(171,191)|
|Funding of clergy pension deficit contributions|-|-|-|
|Transfer from Stipends Fund Capital Account to designated|-|(799,195)|(799,195)|
|fund||||
|Indexation on base value of investment|396,969|(396,969)|-|
||______|________|________|
|Net movements in 2023|396,969|2,806,939|3,203,908|
||________|________|________|
|At 31 December 2023||||
|Gift component of the permanent endowment|5,763,991|-|5,763,991|
|Accumulated inflation since original gift|4,731,871|-|4,731,871|
|Unapplied total return|-|31,567,805|31,567,805|
||________|________|________|
||10,495,862|31,567,805|42,063,667|



47 



## 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 2023: 

||||||**Tangible**||**Net current**|**Provisions**||
|---|---|---|---|---|---|---|---|---|---|
||||||**fixed**||**assets/**|**/ long term**||
||||||**assets**|**Investments**|**(liabilities)**|**liabilities**|<br>**Total**|
||||||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||||||
|General Fund|||||11,546|814,608|1,727,299|-|**2,553,453**|
|_Designated_||_funds:_||||||||
|Board Houses Fund|||||13,972,002|-|-|-|**13,972,002**|
|Church House Fund|||||-|-|341,959|-|**341,959**|
|Densham Loan Fund|||||-|-|-|-|**-**|
|TM<br> Falmouth|||||-|-|127,605|-|**127,605**|
|TM<br> Phase 2|||||-|-|535,330|-|**535,330**|
|Net Zero 2030|||||-|-|-|-|**-**|
|Energy grants|||||-|-|-|-|**-**|
|Clergy hardship fund|||||-|-|-|-|**-**|
|Lay staff cost of living payments|||||-|-|-|-|**-**|
|Mission grants|||||-|-|227,203|-|**227,203**|
|Next Steps||on the Way|||-|-|250,000|-|**250,000**|
||||||________|________|________|________|________|
||||||13,983,548|814,608|3,209,396|-|**18,007,552**|
|**Restricted**||**funds**||||||||
|Pastoral Account|||||-|10,264,626|1,733,383|-|**11,998,009**|
|Diocesan Council for Mission & Unity|||||-|-|32,807|-|**32,807**|
|Education Trusts|||||-|1,011,964|(347,904)|-|**664,060**|
|Mission Fund|||||-|-|-|-|**-**|
|RMF (formerly RME)|||||-|-|(1,164)|-|**(1,164)**|
|Strategic Development Fund<br>||||TMF|-|-|15,858|-|**15,858**|
|Strategic Development Fund<br>||||Phase 2|-|-|(133)|-|**(133)**|
|Strategic Capacity Fund<br> On the Way|||||-|-|-|-|**-**|
|Strategic Ministry Fund|||||-|-|-|-|**-**|
|Generous Giving Fund|||||-|-|-|-|**-**|
|Transition Funding|||||-|-|-|-|**-**|
|SC~~F~~<br>~~D~~ir Change & Renewal|||||-|-|-|-|**-**|
|Energy Cost Grant|||||-|-|-|-|**-**|
|Clergy Hardship Fund|||||-|-|-|-|**-**|
|Archbishop||mission grant|||-|-|-|-|**-**|
|Bishop Phillpotts Library|||||-|-|-|-|**-**|
||||||-|-|11,811|-|**11,811**|
|NZ Carbon||Capacity Building Starter grant|||-|873|5,603|-|**6,476**|
|Boiler Upgrade Scheme|||||-|-|6,464|-|**6,464**|
|PCR2|||||-|-|-|-|**-**|
|Diocesan Investment Programme (DIP)|||||-|-|-|-|**-**|
|grant||||||||||
||||||________|________|________|________|**________**|
||||||-|11,277,463|1,456,725|-|**12,734,188**|
|**Expendable endowment**||||||||||
|Parsonage Houses Fund|||||47,117,618|-|-|-|**47,117,618**|
|**Permanent endowment**||||||||||
|Stipends Fund Capital Account|||||-|39,843,652|2,220,015|-|**42,063,667**|
||||||________|________|________|________|**________**|
|**Total endowments**|||||47,117,618|39,843,652|2,220,015|-|**89,181,285**|
|**Total**|||||61,101,166|51,935,723|6,886,136|-|**119,923,025**|



48 



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 2022: 

||||||**Tangible**||**Net current**|**Provisions**||
|---|---|---|---|---|---|---|---|---|---|
||||||**fixed**||**assets/**|**/ long term**||
||||||**assets**|**Investments**|**(liabilities)**|**liabilities**|<br>**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<br> 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**|
|Next Steps||on the Way|||-|-|-|-|**-**|
||||||________|________|________|________|________|
||||||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|||||-|-|-|-|**-**|
|RMF (formerly RME)|||||-|-|23,111|-|**23,111**|
|Strategic Development Fund<br>||||TMF|-|-|23,184|-|**23,184**|
|Strategic Development Fund<br>||||Phase 2|-|-|(470)|-|**(470)**|
|Strategic Capacity Fund<br> On the Way|||||-|-|-|-|**-**|
|Strategic Ministry Fund|||||-|-|-|-|**-**|
|Generous Giving Fund|||||-|-|-|-|**-**|
|Transition Funding|||||-|-|-|-|**-**|
|SC~~F~~<br>~~D~~ir Change & Renewal|||||-|-|-|-|**-**|
|Energy Cost Grant|||||-|-|-|-|**-**|
|Clergy Hardship Fund|||||-|-|-|-|**-**|
|Archbishop||mission grant|||-|-|6,889|-|**6,889**|
|Bishop Phillpotts Library|||||-|-|12,301|-|**12,301**|
||||||-|851|5,603|-|**6,454**|
|NZ Carbon||Capacity Building Starter grant|||-|-|-|-|**-**|
|Boiler Upgrade Scheme|||||-|-|-|-|**-**|
|PCR2|||||-|-|-|-|**-**|
|Diocesan Investment Programme (DIP)|||||-|-|-|-|**-**|
|grant||||||||||
||||||________|________|________|________|**________**|
||||||-|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**<br>|



49 



## 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**<br>**brought**<br>**forward**<br>**£**<br>Board Houses Fund<br>4,591,508<br>Parsonage Houses Fund<br>35,316,469<br>________<br>39,907,977<br>Comparative analysis for 2022<br>**Balance**<br>**brought**<br>**forward**<br>**£**<br>Board Houses Fund<br>3,494,784<br>Parsonage Houses Fund<br>32,032,958<br>________<br>35,527,742<br>26.<br>**Capital commitments**<br>_Capital expenditure_<br>Expenditure contracted for but not provided for:<br>Church Schools (through Private Finance Initiative funding):<br>Contract due to expire in 2031<br>Repairs to properties|**Realised**<br>**on**<br>**transfers**<br>**£**<br>**Unrealised**<br>**surplus in**<br>**year**<br>**£**<br>**Realised on**<br>**disposals**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>984,625<br>(193,397)<br>(645,735)<br>**4,737,001**<br>(984,625)<br>2,345,552<br>(2,008,181)<br>**34,669,215**<br>________<br>________<br>________<br>**________**<br>-<br>2,152,155<br>(2,653,916)<br>**39,406,216**<br>**Realised**<br>**on**<br>**transfers**<br>**£**<br>**Unrealised**<br>**surplus in**<br>**year**<br>**£**<br>**Realised on**<br>**disposals**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>-<br>1,180,654<br>(83,930)<br>**4,591,508**<br>-<br>3,283,511<br>-<br>**35,316,469**<br>________<br>________<br>________<br>**________**<br>-<br>4,464,165<br>(83,930)<br>**39,907,977**<br>**2023**<br>**£**<br>2022<br>£<br> <br>**46,188**<br>51,584<br>**45,809**<br>138,396<br>________<br>________<br>**91,997**<br>189,980|**Realised**<br>**on**<br>**transfers**<br>**£**<br>**Unrealised**<br>**surplus in**<br>**year**<br>**£**<br>**Realised on**<br>**disposals**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>984,625<br>(193,397)<br>(645,735)<br>**4,737,001**<br>(984,625)<br>2,345,552<br>(2,008,181)<br>**34,669,215**<br>________<br>________<br>________<br>**________**<br>-<br>2,152,155<br>(2,653,916)<br>**39,406,216**<br>**Realised**<br>**on**<br>**transfers**<br>**£**<br>**Unrealised**<br>**surplus in**<br>**year**<br>**£**<br>**Realised on**<br>**disposals**<br>**£**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>-<br>1,180,654<br>(83,930)<br>**4,591,508**<br>-<br>3,283,511<br>-<br>**35,316,469**<br>________<br>________<br>________<br>**________**<br>-<br>4,464,165<br>(83,930)<br>**39,907,977**<br>**2023**<br>**£**<br>2022<br>£<br> <br>**46,188**<br>51,584<br>**45,809**<br>138,396<br>________<br>________<br>**91,997**<br>189,980|
|---|---|---|
|||2022<br>£<br>51,584<br>138,396<br>________<br>189,980|



Private Finance Initiative (PFI) payments are due in half-yearly instalments. The payments cover the (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. 

50 



## 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**<br>Within one year of the balance sheet date<br>In the second to fifth years inclusive of the balance sheet date<br>Beyond 5 years of the Balance Sheet date<br>**Other operating leases**<br>Within one year of the balance sheet date<br>In the second to fifth years inclusive of the balance sheet date|**2023**<br>**£**<br>**64,280**<br>**109,937**<br>**-**<br>**________**<br>**174,217**<br>**885**<br>**221**<br>**________**<br>**1,016**|2022<br>£<br>51,400<br>33,600<br>-<br>________<br>85,000|
|||885<br>885<br>________<br>1,770|



The large increase in land and buildings commitments is due to the signing of a new lease. The team based at Church House will move to the Old Cathedral School as the lease at Church House runs out in August 2024. 

## 28. **Pensions** 

## _Clergy_ 

The TDBF 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 scheme separately from those of the Responsible Bodies. 

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, which were £482,435 in 2023 (2022: £635,136), plus any figures Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022 £82,320). 

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 from 2013 in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% per annum and an allowance for 2020 data of 0% (ie w2020 = 0%). 

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

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

- % of pensionable stipends 

31 December 2021 

31 December 2022 31 December 2023 

- 7.1% payable from January 2021 to December 2022 

Nil Nil 

51 



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

## _Notes to the financial statements_ 

## 28. **Pensions (continued)** 

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022. 

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in 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 2023 is nil. The movement in the Balance Sheet liability over 2022 and over 2023 is set out in the table below: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Balance sheet liability at 1 January|**-**|143,565|
|Deficit contribution paid|**-**|(82,320)|
|Interest cost (recognised in SoFA)|**-**|-|
|Remaining change to the Balance Sheet liability* (recognised in SoFA)|**-**|(61,245)|
||**________**|________|
|Balance Sheet liability at 31 December|**-**|-|



* 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 balance sheet date and has been valued using the following assumptions. No assumptions are needed for December 2023 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2023 since pensionable stipends for the remainder of the recovery plan were already known. 

||December 2023|December 2022|December 2021|
|---|---|---|---|
|Discount rate|n/a.|n/a.|0.0% p.a.|
|Price inflation|n/a.|n/a.|n/a.|
|Increase to total pensionable payroll|n/a.|n/a.|-1.5% 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 TDBF 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 TDBF 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 scheme 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. This does not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers -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 (2023: £26,166, 2022: £23,319), plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £26,166 for 2023 (2022: credit of £82,183). 

52 



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 having taken advice from the Actuary. 

A valuation of the DBS is carried out once every three years. The most recently finalised valuation was carried out as at 31 December 2019.  In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the -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 as at 31 December 2022. The calculations for this are underway. 

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 surplus. As a result, there is no obligation as December 2023. 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:|||
|---|---|---|
||**2023**|2022|
||**£**|£|
|Balance sheet liability at 1 January|**-**|143,559|
|Deficit contribution paid|**-**|(38,057)|
|Interest cost (recognised in SoFA)|**-**|2,000|
|Remaining change to the Balance Sheet liability* (recognised in SoFA)|**-**|(107,502)|
||**________**|________|
|Balance Sheet liability at 31 December|**-**|-|



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

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

||December|2023|December 2022|December 2021|
|---|---|---|---|---|
|Discount rate||N/A|0.00%|1.40%|



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

Following consultation with the three employees for whom the TDBF are still contributing into the DBS scheme, it has been decided to close the TDBF section of the DBS scheme from 31 March 2024. The employees will move into the Pension Builder Scheme, see below. 

## Pension Builder Scheme (PBS) 

For employees who commenced employment after 1 February 2010, the TDBF 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 TDBF 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 each section of the Pension Builder Scheme. 

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

## _Notes to the financial statements_ 

## 28. **Pensions (continued)** 

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable (2023: £145,492, 2022: £113,596). 

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

For the Pensions Builder Classic section, the 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time. 

The next valuation is due as at 31 December 2022. Calculations for this are currently under way. 

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 

## 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 2023, 7 trustees were paid £16,153 (2022: 6 trustees £12,744). 

The TDBF enters into transactions, on a regular basis, with other autonomous organisations within the Church of England he Church Commissioners. From 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 TDBF 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:<br>Freehold land and buildings<br>Other investments<br>At cost:<br>Freehold land and buildings<br>Other investments|**2023**<br>**£**<br>**205,200**<br>**5,409,794**<br>**________**<br>**5,614,994**<br>**6,200**<br>**2,582,902**<br>**________**<br>**2,589,102**|2022<br>£<br>205,200<br>4,935,351<br>________<br>5,140,551|
|---|---|---|
|||6,200<br>2,497,493<br>________<br>2,503,693|



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

The TDBF also administers Devolved Formula Capital (DFC) grants (DFC grants provide the d with direct funding to invest in their buildings, grounds and ICT equipment). Consequently, for those individual schools which have appointed the TDBF as their agent, the TDBF receives their DFC grants direct from the Department for Education and defrays qualifying expenditure according to their instructions.  At 31 December 2023, the TDBF held £239,307 (2022: £248,918) in designated bank accounts separate from those of the TDBF. 

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

## _Notes to the financial statements_ 

## 31. **Prior year comparative SoFA** 

|||||**Unrestricted**|**Restricted**|**Endowments**||
|---|---|---|---|---|---|---|---|
|||||**funds**|**funds**|**£**|**2022**|
|||||**£**|**£**||**£**|
|**Income**|**and endowments from:**|||||||
|Donations:||||||||
|Parish contributions||||3,073,895|-|-|**3,073,895**|
|||||922,686|1,023,098|-|**1,945,784**|
|Other||||136,903|51,581|-|**188,484**|
|Charitable activities<br>||statutory fees etc||259,772|-|-|**259,772**|
|Other activities||||-|203,905|-|**203,905**|
|Investments||||473,922|69,162|966,260|**1,509,344**|
|Other||||36,379|-|43,392|**79,771**|
|||||________|________|________|**________**|
|**Total**||||4,903,557|1,347,746|1,009,652|**7,260,955**|
|**Expenditure on:**||||||||
|Raising funds||||137,039|-|165,582|**302,621**|
|Charitable activities||||6,579,355|1,363,758|(61,245)|**7,881,868**|
|Other resources expended||||-|-|-|**-**|
|||||________|________|________|**________**|
|**Total**||||6,716,394|1,363,758|104,337|**8,184,489**|
|**Net incoming resources before realised gains**||||(1,812,837)|(16,012)|905,315|**(923,534)**|
|Net gains on investment assets||||(91,724)|(1,489,348)|(172,004)|**(1,753,076)**|
|||||________|________|________|**________**|
|**Net incoming resources before transfers**||||(1,904,561)|(1,505,360)|733,311|**(2,676,610)**|
|Transfer between funds||||1,932,539|(1,182,408)|(750,131)|**-**|
|||||________|________|________|**________**|
|**Net income for the year**||||27,978|(2,687,768)|(16,820)|**(2,676,610)**|
|Unrealised gains on revaluation||||1,180,654|-|3,283,511|**4,464,165**|
|||||________|________|________|**________**|
|**Net movement in funds**||||1,208,632|(2,687,768)|3,266,691|**1,787,555**|
|Fund balances at 1 January 2022||||15,910,033|13,570,708|84,267,541|**113,748,282**|
|||||________|________|________|**________**|
|**Fund balances at 31**||**December 2022**||17,118,665|10,882,940|87,534,232|**115,535,837**|



55