The St Albans Diocesan Board of Finance Annual Report and Consolidated Financial Statements 31 December 2022 Company Limited by Guarantee Registration Number 00145227 (England and Wales) Charity Regislialion Number 248887 The principal object of the Board is the promotion of the work of the Church of England in the Diocese of St Albans loy Imo¢Ji The aim of Living God's Love is to see flourishing Christ centred communities inspiring people of all ages and backgrounds to discover God, to grow in their relationship with him and to respond to his transforming love, thmugh seNing others so that God's Kingdon7 maygrow in our world. The Sl Albans Diocesan Board of Finance Contents Report Chairman's statement Members, report (incorporating strategic report} Independent auditor's report 31 Financial Statements Consolidated statement of financial activities 35 Comparative consolidated statement of financial activities 36 Consolidated balance sheet 37 Comparative consolidated balance sheet 38 Charity balance sheet Comparative charity balance sheet Summary consolidated income and expenditure account 39 40 41 Consolidated statement of cash flows 42 Principal accounting policies 43 Notes to the financial statements 49 Reference and administrative infomiation 79 The Sl Albans Diocesan Board of Flnance Chairman's statement Year to 31 December 2022 I would like to thank all involved in our parishes, deaneries, chaplaincies, and schools, ably supported by our Diocesan staff who have continued lo support the ministry in 2022, a ye2r of recovery from the pandemic. bul which brought major new challenges, driven by the war in Ukraine. We have all seen unprecedented rises in ulilily bills and significant inflation has impacted everyone and continues lo do so in 2023. Despite these, the generosity ol our many congregations meant that parish share collection in 2022 was maintained at 2021 levels, although the rale of recovery is still less than pre-pandemic levels. We managed to keep the increase in Parish Share in 2D22 10 1.4Yo but we are acutely aware that in many churches, congregations have not recovered to the numbers last seen in 2019. To keep the parish share payments year on year al simi18r levels overall has inevitably meant that contributions per member increased by 4.7QA, a situation which, in the long run is unsustainable unless we achieve the growth we are all aiming for. Income that the Board receives from properties and listed investments held up in 2022 and together with steps taken lo reduce overhead expenditurè, thi5 reduced the impact of the shortfall in parish share ¢olleGtions of £1m so that the final deficit in our manage￿ent accounts for the year was £350,000 similar lo 2021. The deficits over the last 3 years, totalling £1,25m have not been added lo the Common Fund collections of parish share in the following year las had been the case up lo 2019, when any deficit has not been materiall- instead we have ulilised unrestricted. non-operalional ieserves lo cover the delicils. In addition to the financial headwinds facing the parishes, which make our future income levels fragile, we have to have regard lo strategic priorities approved by Synod. The most financially challenging one of these is the Diocesan Nel Zero Carbon Action Plan. adopted by Synod on 18th October 2022. As part of the Diocese's response lo the Nel Zero Carbon by 2030 tsrget sel by General Synod, the Action Plan has lo be adopted and incorporated into the policies and planning of every section ol the DI0￿Se. This requires the DBF to support the use of existing budgets and resources to facilitate the Plan, and to seek further funding and resources as required. I would like lo acknowledge the work of the Eslales Department in improving the energy efficiency of our large eslale of parsonage houses. This has been a policy over many years now1920/0 have loft insulation, 54,￿ have double glazing. gOQA have cavity wall insulalionl, but the challenge lo meet our NZC aims remains considerable. Much work is being done, some in partnership with other Dioceses, lo liial new and emerging technologies in our houses, inclLJding the use of heal pumps, bul so far the cost of conversion has been very high, certainly more than we can handle for the eslale as a whole. Of course, most of our churches face similar NZC issues, which means we have lo find ways of supporting PCCS. with advice and guidance as well as grants to help parishes achieve their own NZC plans. For a while now, the DBF has been considering ways lo enhance ils investment returns. This has been given added impetus as the financial challenges have mounted. In May the DBF formally adopted a total return investment policy, lo lake effect from 2022. This enables us to budget accurately the investment income for fulijre years by taking a 3.5 /0 return on the 5 year rolling average year end value of our capital funds, including on our Glebe portfolio, which is mainly in agricultural land, let al quite low yields. The distribution rsle will be reviewed every 3 years in the light of actual investment income, with our investment managers being given an objective return of CPI plus 40h. In 2022 the application of the lolal return investment policy has led to a surplus above budgeted investment income of £642,000. This surplus has made it possible in 2023 to create grant schemes lo support initiatives in net zero Carbon, mission, and other areas. The DBF has reslruclured ils grants commillees lo focus separately not only on the traditional Parish sha￿ support for parishes bul also lo encourage growth in our parishe5 by mission enabling grants. £475,000 has been allocated lo support NZC inilialives and 8 further £167,000 for mission inilialives. 11 is my hope that we will be able to continue and expand these grant making schemes. Much will depend. this year on parish share colleclions holding up, and in fvlure on whether we can manage parish share requests in line with the membership's ability to pay, so that we can use enhanced investment income lo fuel mission in our parishes rather than on financing deficits. We acknowledge with thanks the support of our major external funders- the chLJrch commissioners for project funding, Allchurches trust for support of our curates, programme and Hockerill Educational Foundation for support for our diocesan Board of Education in its most important work in our schools. Above all, we give thanks for the magnificent continuing efforts made by so many people lo support the flourishing of thè Christian faith here in the diocese of Sl Albans. The Sl Albans Diocesan Board of Finance 1 Chairman's statement Year to 31 December 2022 I would like to take this opportunity lo thank on your behalf our Di0￿san Secretary, David Vvhile and all the staff al Holywell Lodge for managing operations so well. Particular thanks are due lo the Finance team, led by Glyn Barker, our Director of Finance, who, in addition lo their normal work, SUC￿ssfUllY implemented al the year end the replacement of our accounting system, the new one of which will modernise our working environment and add gre311y lo our reporting capability. olin Bird Chairman of the Board of Trustees Date.. 2LH 2oZ The Sl Albans Di0￿san Board of Finance 2 Members, report Year to 31 De￿rnber 2022 INTRODUCTION The members. as Irustees for the purpose8 of charity legislalK)n, submit their report together with the consolidated financial statements of the Sl Albans Diocesan Board of Finance Ilhe "Board. or the DBF. or the 'Charty I for the year ended 31 December 2022. The report has been prepared in accordance with of the Charities Act 2011 and constitutes a directors, report for the purposes of company legislation. The financlal slalements have been prepared in accordance with the accounting policies sel out on pages 43 10 48 of the attached financial slalemenls and comply with applicable laws and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland {FRS102}. The St Albans Di0￿$8n Board of Finance 3 Members, report Year to 31 December 2022 OBJECTIVES, ACTIVITIES AND POLICIES parochial mission and ministry through the payment of stipends and the promsion of housing and training. The principal object of the Board, as sel out in ils Memorandum and Articles, is the promotion of the work of the Church of England in the Diocese of Sl Albans. The meM￿r$ of the Board are aware of the Ch2rily Commission's guidance on public benefit and have had regard lo il in their adminislralion of the Board. The number of ordained ministers 88 at 31 December 20221 were.. Bishops and archdeacons Cathedral Clergy Parochial clergy- Incumbent slalus Curates Non-parochial clergy Total 190 54 28 284 The Board bolieves that, by promoting the work of the Church of England in the Diocese of Sl Albans. il helps lo promote the whole mission of the Church Ipasloral. evangelistic. social and ecumenical} more effectively, both in the Diocese as a whole and in ils individual parishes, and that in doing so provides a benelil lo the public by.. As al 31 December 2022, there were also 47 self- supporting ministers and 235 li￿nSed readers. The Diocese ¢onlinues to.. Providing resources for public worship, pastoral care and spiritual, moral and intellectual development, both for ils members and for anyone who wishes lo benefit from what the Church offers.. and Follow the national stspend benchmark adjusted for regional factors in determining the level of stipend for clergy of incumbent slalus., and Contribute lo the Church of England defined benefit pension scheme for clergy. Promoting Chiislian values and 8eNice by members of the Church in and to their communities. lo the benefit of individuals and Society as a whole. The Board continues lo support engagementwilh other Christian ¢hurches and other faith8 throughout the Diocese. Together wlh the Bishop's Council the Board seeks to develop comprehensThie. sustainable strategies for the use of resources- people, finance and properties- lo provide ministry and mission throughout the Diocese and lo continue to provide practical support and tools for parishes, schools and chaplaincies. The Diocesan initiative 'Living God's Love,, was launched in St Albans Abbey in January 2011. Living God's Love has three themes.. Going Deeper into God, Transforming Communities and Making New Oisciples. Living GCKI'S Love is rooted in the parishes, and the effective deployment of Slipendiary Clergy is vital lo that work. The Board aims lo support and resource 1 S18ti51i(% r8POrt for StAlbans Dioeasa as at the end ol December 2021 produ¢xl by thg Church Commissioners. The Sl Albans Diocesan Board of Finance 4 Members, report Year to 31 December 2022 Funding of slipendiary clergy and the provision of housing accounts form the majority of the Board's expenditure (see Note 6 to the accounts) and is achieved by.. primarily managed by Bidwells, professional managing agents, who report to the Glebe Committee which monitors their performance and the implemenlalion of the investment strategy. lil The collection of contributions from parishes via the Parish Share the current Parish Share Scheme was approved by Diocesan Synod in 1995. 11 was reviewed by Synod in March 2009 when il was agreed that the current scheme should continue. The Board seeks lo ensure il operates effectively by receiving regular reports on receipts. following up where contributions have not been received and reviewing share factors on a regular basis. 11 also provides help with meeting Parish Share commitments by making Pastoral Aid Support grants lo offset the contribution due. These giants fall into two categories.. Mulli-year Mission Aided Support Grants for parishes identified by senior clergy as needing particular support lo sustain mission and Temporary One Year Pastoral Aid Support Grants lo assist with Iransilory financial challenges. The portfolio of listed investments 8t 31 December 2022 had a market value of £56.7m 12021 £55.gm}. Under the Diocesan Stipends Funds Measure 1953, as amended by the Endowments and Glebe Measure 1976, ¢apilal may be applied to the acquisition of land and buildings to be held as part of Diocesan glebe. Grant maklng pollcy Grants made by the Diocesan Board of Finance fall into one or more of the following main categories.. Grants to parish churches lo assist with repairs or rebuilding Costs.. Grants to parish churches for roof alarms,. Grants made in support of evangelism and mission projects., Grants made at the discretion of the Bishop or Archdeacons for clergy assistsnce,. Mission-Aided Grants identified by the Archdeacons for parishes who meet the criteria., Pastoral Aid Support Grants to assist in meeting Parish Share contribution., Mission Inilialives., Church Schools- Grants for capital funding from the schools conditions allocations {SCAI', other grants lo Schools- External Charitie8 For humanitarian relief mission and evangelism-, Clergylclergy widows Ordinands, support.. Discretionary Grants for the relief of financial hardship. li1} The management of financial investments The investment policy and specific powers of investment of the Board are sel out in vaTIOiIS measures and acts. The Board holds investments as aulhorised by the Trustee Act 2000. The objective is to generate a sustainable and growing income stream in the short lo medium term, whilst also seeking capital growth in real terms. over the much longer term. This is to be achieved through a balanced and diversified portfolio of equities, bonds, property. allemalive assets and cash. The investment strategy is sel by the Board and takes into account income and capital growth requirements, ethical considerations, the risk profile and the investment managers, view of the market prospects in the medium term. Quarterly reports are received from the investment man8ger8. In addition lo the above, parishes and schools raised over£38.000 in 2022 for'Nol Forgotten,, the Bishop's Harvest Appeal to help change the lives of people in Mozambique who have beon Iraumatised and displaced by conflict. For this Harvest appeal, the Diocesan Board of Finance partnered with Tearfund. a Christian charity which tackles poverty and injustice through sustainable development. The DI0￿Se also raised £32k lo support schemes lo aid Ukrainian refugees sellling within the Diocese. The Board's Investment Managers are Cazenove Capital Management and CCLA Investment Management. The Board continues regularly to review ils inveslmenls. This includes systems for moniloring and reporting on ethical issues, good online reporting, semi-segregaled fund approach adding investment management diversification and close networking with members of the Ethical Investment Advisory Group of the Church of England IEIAGI and the Charities Investment Group ICIGI. The property portfolio is All awards are aulhorised by the designated trustees. The Sl Albans Diocesan Board of Finance 5 Members, report Year to 31 December 2022 Reserves pollcy The majority of the Board's budget is expended on the monthly payment of stipends and salaries, Any action lo deal with cash flow shortfalls will lake lime lo implement. Therefore, the Board has agreed that the level of free reserves should ideally be not less than eight and not more than twelve weeks, expenditure. Al the end of 2022, the free and realisable unrestricted reserves lolalled £3,899k representing 12.8 weeks of expenditure {2021 £2,922k representing 9.5 weeks of expendilurel. The Board continues to review the level of working capital lo ensure that il ¢overs core costs and there is sufficient cash flow lo conduct the activities of the charity on a day-to-day basis. It is the Board's policy lo set aside, in a Propety Ring- fenced Fund, capital receipts from the sale of former parsonage houses that become surplus lo needs after pastoral reorganisalion. The purpose of this fund is to invest in income generating assets in order lo fund improvements to ils remaining housing stock. The value of the investments al the end of the year in the fund amounted to £6,229k {2021 £6,945kl. We have been able to increase operational reserves significantly as a result of the application of lolal return, which has contributed an extra £615k to UnreStr￿ted funds. The operational deficit from last year was covered by a transfer of funds from other unreslricled funds. Costs also remain under tight control. Careful management of resources and the fact that parish giving continues to ho￿ up well meant that the impact on reserves was significant but manageable. We have now seen three consecutive years where we have reported a deficit on the Common Fund befo￿ investment gains and losses. The continuing effects of the pandemic, increased costs of living and the uncertainties of the war in Ukraine means the Board will continue to monitor and manage the ongoing consequences carefully. The Sl Albans Diocesan Board of Finan￿ 6 Members, report Year to 31 December 2022 COMMITTEE STRUCTURE Realising development potential of slles.. Selling houses no longer required., Lelling houses during vacancies.. and Providing new houses where required. The Bishop's Coun¢ll is a statutory body established under the Synodical Government Measure 1969. 11 acts as the Standing Committee of the Synod and carries on the work of the Synod between sessions. It advises the Bishop on mallers where he seeks guidance and has, since ils inception in 1970, gradually assumed an important role in the formulation of diocesan policy. The Committee is charged with ensuiing that appropriate accommodation is provided for our clergy in the right places, that repairs are carried out and that improvements are made where there is the need and benefits are identified. This is done with regard to the Environmental Policy adopted by the Committee in recent times. During the year. the Council received regular reports from the Board for Mission and Mlnlstry, Board of Education and Agenda Group. The Council also received reports on new housing areas in the DI0￿Se through the Development Plans Monitoring Groupj and closed churches through the Closed Churches Uses Commlttee. The adoption of Nel Zero Carbon. targets by General Synod has presented new challenges and opportunities lo the Board. The Board has consislenlly focussed resources where they are needed most notably the subslanlial programme of improvements reflecting environmental concerns across the Diocese. The Property Committee gives a¢live consideration to all aspects of this developing policy. 'Ih effect from 1 January 2019 the Bishop's Council assumed the role of Diocesan Mission and Pastoral Commillee. The Diocesan Mission and Pastoral Executlve Committee IDMPECI is responsible for carrying out the detailed casework which is then ratified by the Bishop's Council. The slalulory responsibilities are undertaken by the Bishop'8 Council. An increasingly important part of the Commillee's work is the redevelopment of existing housing stock for which there are sites currently under consideration. The DMPEC received revisions lo Deanery MissK)n Action Plans involving proposals for pastoral re- organisalion. The Dlocesan Advlsory Commlttee (DACI 18 8 slalulory body whose functions are sel out in ecclesiastical legislation. Ils role is lo advise the Chancellor and parishes on proposals for works to church buildings, churchyards and ¢hurch furnishings, and to advise more generally on the care and development of churches. In line with slalutory prtsmslon and the priorities of Living God's Love, the Committee has regard lo churches as local cenlres of worship and mission, in which: People can encounter God and be drawn into a worshipping community,. Parishes can reach out in mission., and Local communitie8 can be transft)med. The Glebe Committee continued lo manage glebe holdings. Investment property comprises agricultural land. retail and residential property. The property is primarity managed by Bidwells. professional managing agenls. who report lo the Glebe Committee. which monitors their performance and the investment strategy. The investment policy is to maximi5e return with regard to ¢ertain pre-defined parameters. The Diocesan glebe comprises over 3,000 acres of rural land, together with some residential properties, mainly in the Diocese of Sl Albans. The glebe land is managed for the benefit of the diocesan stipends fund for clergy in the Diocese. The Assets Commlttee's role is'lo recommend to the Board of Finance an overall strategy for the management of the Board's investment and operational assets consistent with the functional priorities of the Diocese and the responsibilities of the Board as Charity Trustees to cuirent and future beneficiaries". The Property Committee continues lo be responsible on behaK of the DK)cesan Board of Finan￿ for clergy housing including corporate properties. This includes.. During the year, the Committee received regular updates on the Board's Inveslmenls, together with presentations from the Board's Investment Managers. In addition, il received updates on Glebe property developments and the Linmero development al Houghlon Regis. The Sl Albans Diocesan Board of Finance 7 Providing secure accommodation for all clergy Ensuring the Board meets Ils slalulory duty to carry out repairs.. Replacing unsuitable houses where possible.. Improving properties.. Members, report Year to 31 December 2022 In April 2022, the Assets Committee sub-group, sel up to review the Board's investment objectives, recommended adoption of a lolal return investment policy with an appropriate distribution policy. The Dlocesan Board of Educallon is a stalulory body established under the Diocesan Boards of Education Measure 2021. with funct￿n$ including.. The promotion of education consislenl with the faith and practice of the Church of England.. The promotion of religious education and rgligious worship in schools and academies,. The promotion of Church schools and academEs in the Diocese., and Advi¢e lo school governois on any maller affecting Church schools and academies. The Parish Shares and Grants Committee has operated with dual functions to review and adjust operation of the Parish Shares Scheme and lo consider applications for support grants lo parishes and other grant schemes. During Ihe year it became clear that with new grant schemes being introduced il would be appropriate lo amend the committee structure and separate the Iwo functions. The Board of Finance agreed to replace the Parish Shares and Grants Committee wf(h two new commillees.. the Parish Shares and Support Committee and the Parish Grants Committee. The two new committees have begun lo function from early 2023. The Diocesan Board of Education has a strong reputation with ils schools due lo the quality and depth of services il provides. The Diocesan Board of Education is making a contribution lo the wider life of the Diocese through the creation of resources to support the development of faith al home, at school and in church. Board for Mlsslon and Mlnlstry {BMMI The purpose ofthe Board is to enable people in every place in the diocese lo glimpse the good news of Jesus and be empowered in their discipleship and calling. The Diocesan Board ofEducalion worked closely with the Board lo seamlessly transition to a new constilulional form following the enactment of the DBE Measure 2021. After the resolution had been passed by Diocesan Synod in October 2021. the Archbishops, Council Certificate was received. confirming that the Scheme which prepared the way for the institution of the Diocesan Board of Education as a slalulory ¢ommillee of the Diocesan Board of Finance would come into operation on 1 January 2022. Key policies were reviewed, and a three-year strategic development plan approved which provides the framework for the Board's work across the 2022- 24 triennium. The Board's values are being resourceful, imaginative. caring, hopeful (RICH} The Board is inspired by Matthew 9..35-38-'Ask the Lord of the harvest lo send out labourers into his harvest.. The Board's Msion is lo see our people and places flourishing in God's purposes and achieving our eight diocesan objectives.. More activities that seek to grow discipleship ensbling us to join in with God's action in the world Parishes equipped with appropriate ministerial Capacity Enhanced wellbeing of OUT ministers Churches growing younger and more diverse Parishes that are financially sustainable More New Worshipping Communities Parishes operating safely and wtth g¢)od goveman¢e Net Carbon Zero by 2030 The St Albans Dlocesan Board of Flnance 8 Members, report Year to 31 December 2022 KEY ACTIVITY INDICATORS As part of the Vision of Livtng God's Love, statistics published during the year in respect of 2021, illustrate some of the work of mission and ministry being undertaken in parishes. 20212 2020 20193 Infant and Child Baptisms Adull Baplisms Totsl Baptisms 1,468 126 1.594 1,011 337 2,137 223 1.348 2,360 Infant Thanksgivings Chikl Thanksgivings Total Thanksgivings 26 23 49 15 16 31 49 26 75 Mamages 818ssings Totsl 711 45 7S8 685 36 621 822 50 872 Fungrals in church Funer81s at Grem8loriu Total Funerals 1,754 2,489 4,243 1,170 1.841 3.011 2,014 2,069 4,083 East8rDay Communicanls EasÈerAIIAg8 Allendance Christmas Day CommunK8nts Chnstm88 All Age Attendance Usual Sunday A118ndance Elgctoral Ro114 12.1S5 15.965 14,320 35,290 nla 25,034 nla nla 7.884 16.183 nla 32.190 26.676 37.137 27.091 91.703 20,463 27,055 2 Statistics for Mission 2021, published by th8 R888arch and Statistics Department of the A￿hbishQpS. Council. Prewous yeats. figur8s havo been updated a5 further parish return5 ar8 rer£ived. 3 Diocesan Database The St Albans Diocesan Board of Finance 9 Members, report Year to 31 December 2022 COMMITTEE ACTIVITIES BISHOP'S COUNCIL In January and March, joint meetings with the Council and the Diocesan Board of Finance look place lo discuss the common vision for the life of the Diocese. The January joint meeting discussion cenlred on the strategic priorities for the development of the Racial Justice Action Plan, the Diocesan Environmental Policy. the Alban Way proposal and Diocesan finances. The joint meeting received Iwo presentations on the Racial Justice Action Plan, one from the Chair of the Racial Justice Group, the Reverend Jo Burke and one from the Reverend Jairo Nyaongo (Bishop's Adviser for Minority Ethnic Concem8. The Racial Justice Group were encouraged to continue lo implement the action plan. The joint meeting also discussed the Diocesan Environmental PoI￿Y and received presentations from Mrs Rachel Johnston (Diocesan Environment Officer) and Mr David Lambert (Chair of the Diwesan Environment Group) and the comment8 received from the joint meeting were fed into the Environment Policy to be discussed al the March 2022 Synod. The Director of Mission and Ministry reported on the opportunity lo bid for innovation funding from the Strategic Development Fund forlheAlban Way proposal, a leadership pathway for children, young people and yOLJng adults. In July, the Council noted that there could be a defi¢il fo¥ 2022 of up to £550k, with around sixty parishes who were behind in paying the Parish Share. The Council noted that the budgeting for 2023 had been challenge, mainly as a result inflation. The Council acknowledged that the excellent and clear presentation atthe October Synod from the Director of Finance had showed the challenges and uncertainty and agreed that il was helpful to re￿1ve this type of upfront communKalion lo ensure everyone was aware of the issues. During the year, the Council received regular retx)rts and noted that the Safeguarding team continued lo promote safeguarding policies and practice whilst dealing with a 8ub8tsnllal workload and a large amount of 'in person. and online training. The Council noted that an additional full-lime Safeguaiding Officer had been recruited, together with extra administrative support. lo enable the safeguarding team lo continue lo support paiishes and meet national church training requirements. The Council noted th&joinl recruitment process which had resu5ted in a closer working relationship between the Diocese and the Cathedral. In July, the Council discuss8d Opportunltles for Strategic Investment lo agree how £642k of additional income in 2022 resutting from an adoption of a Total Return investment policy could be made available lo fund applications for Nel Zero Carbon and mission inilialives. The Council noted that there were also $VJn1f￿anI historic designated funds no longer required for the purpose for whlch the designation was originally made which amounted to approximately £750k which Could be redesignaled lo support deficits against budget if requiled. The Council acting as Mission and Pastoral Committee continued lo receive regular reports from the Mission and Pastoral Executive Committee and considered draft proposals for pastoral reorganisation lo promote appropriate models of ministry lo support mission in each part of the Diocese. In March, the Council received a Presentation from the Bishop of Bedford and the Pastoral and Advisory Secretary on The Sl Albans Di0￿san Board of Finance 10 Memb6rs' report Year to 31 December 2022 the Pastoral Reorganisation Principles and Overvi¢w of the Pastoral Processes. It was emphasised that pastoral reorganisalion was driven by legislation and the slalutory process needed to be followed. The Council agreed that the Diocese needed to be confidgnl and courageous lo become 8 flourishing and sustainable Di(Kese. The work of the Closed Churches Uses Committee ICCUCI, on behalf of the DMPC Executive Commillee, 15 undertaken against the ba¢kground of risks asSOCRted with closed churches being born by the DBF. For the first lime in 10 years, the CCUC was tasked with two new eases. Luton. St Matthgw was closed when the parish was united with the parish of Luton. and the CCUC was able lo recommend to the Church Commissioners that the building should be leased to the Romanian Orthodox Church. Due lo safety concerns, Letchworth. St Michael had been closed fortwo years. In October 2021 , the building was formally closed and vested in the DBF, with the CCUC initiating a use-seeklng period lo hjenlify the best possible future use for the site. including marketing for similar Community based uses. The CCUC continued to Klenlify new uses and work with local Communities of the closed churches al Thundrldge, Old Church Tower. Preparatory work for a conditions survey was underway lo enable the manag&menl of the sile lo Iiansfer to a local group. East Hyde ¢onlinued lo work with the Greek Orthodox Church including the sale of the northern piece of church 18nd. The Council Continued lo receive updates on the work of the Developmgnt Plans Monitoring Group which included progress reports on new housing developments in the Diocese and parish responses lo new opportunities for growth. In October. the Council discussed papers on a'youth and Children's Revlew. and 'Growing Younger, and during discussion agreed that the updated report should be entitled 'Growlng Youngor and more Divèrse,. It was acknowl&dged that future development of work with children and young people needed lo be integrated with the Diocesan education team. Raclal Justlce Actlon Group - following the discussion al the joint meeting of the Council and the Diocesan Board of Finance in January, and a presentation at Synod in March, at the O¢lober meeting Council memb&rs were asked lo reflect on three points.. grass roots- more work needed lo achieved from the parish level upwards,. training forclergy appointments- parish based training forparishes, parish representatives and church officers and the need for ￿hlIe priwlege training, for curates, clergy and senior staff. Following a round table discussion, the following responses were received.. more self-awareness for the whole parish., focus on how lo manage PCCS in the vacancy process., replace the word 'lraining' and use 'lo raise awareness of diversity and diversity issues.; lo ensure that clergy were equipped to raise awareness and to engage across different cultural groups. The Sl Albans Diocesan Board of Finance 11 Members, report Year to 31 December2022 DIOCESAN ADVISORY COMMITTEE 2022 saw parlshes recovering from thg ¢ovld-19 pandemlc with many taking the opportunity to review mi$5ion and ministry within thelr communities. New challenges emerged and in response some parishe5 provided essential serylces to the community whila others showed great resilienco. The DAC has provided help. guidance and support lo enable parishes to use their buildings for such purposes, alongside ils usual casework which started lo return to pre-pandemic levels. In particular, there were more than twice the numberof sile visits carried out by DAC members and staff than in 2021. enabling the Committee lo provide valuable in depth support and advice to parishes. Nel Zero Carbon was a major ongoing theme of the DAC team's work and changos lo the national Faculty Rules in July 2022 meant that there was a legislative requirement for the DAC lo consider the environmental impact of proposals. In pra¢lice, this was already happening, as demonslraled by the Chancellor's decision in an application for external floodlights before the new Rules came into effect. The team's work relating lo nel zero carbon included: Rolling out advice to parishes based on the DAC'S strategy lo support them In respect of their church building Giving advice to al least 36 ¢huiches on healing options and renewable energy Guiding parishes through the Fa¢ully Rules changes, including the new requirement for churches to consider all the options before replacing a fossil-fuel boiler Conducting a consullanl-led healing case studies project with national grant funding. using four churches in the Diocese lo find common Ihem6s in deciding on appropriate and affordable options for replacing healing Sharing the heating case studies project fi'ndings with parishes in a webinar Updating DAC advi￿ on solar panels. Completed project$ can demonstrate the transformative nature of church buildings and their potentlal to be places where people can encounter God and be centres of mission and ministry: Major extension projects were completed al Bromham and Ickleford which had both fa¢ed building delays during the pandemic. The new parish halls al East Barnet were officially opened, the culmination of around 15 years, work from initial dream lo completion. These spaces will be valuable for the worshipping communities for worship, welcome and mission, as well as for the wider community Internal reordering and introduction of facilities al Langford and Blunham has enabled those churches lo increase space for their own activities, as well as meeting community needs Four years of immense work and the frijslralions of being out ol the church building ended in Royston when the chuich building re-opened forworship and community events in late November. As well as being fully repaired following the devaslaling lowei fire in 2018, the church has now also been reordered lo improve accessibility throughout the building and to provide a flexible space and facilities to enable the church lo be used as a community hall alongside ils continuing worship and hospilalily functions The Lollery-funded projoct lo refurbish Rectory Lane Cemetery. Berkhamsted (a detached churchyard} as a pla￿ for reflection, commemoration and community events officially came lo an end, bLtrI the body of volunteers built up as part of the project is working hard lo ensure that activity continues. Llke the completed projects, the casework consldered by the Committee represented the range of Issues facing parishes across the Dlocese and that creatlve solutions Can enhance the building and people's experience of it: Al Bedford. St Paul. the longstanding and holly-debated matter of the future positioning of slalues of Sl Peter and St Paul- which were taken down from external niches some 40 years ago during repair works was finally settled when the Chancellor granted a faculty for the development of the north porch lo become a welcoming additional entrance to the church and for the slalues to be fixed within the porch The DAC gave detailed advice on schemes lo provide glazed inner entrance doors al Hlgh Wych and Hatfleld. St Etheldreda, in consullalion with the parish and external organisalions such as Historic The St Albans Diocesan Board of Finance 12 Members, report Year to 31 December 2022 England, the Victorian Society and the Church Buildings Council and, as a resutt, supported amended proposals al High Wych, which are now moving forward through the f8¢ully process In February, Storm Eunice caused damage to a number of churches and churchyard trees, including al Sundon, Woburn. Marsh Farm, Barley and Royslon. The DAC team offered immediate advice and is developing gvidance for parishes on planning for this and other types of emergency Development work at St Albans, St Peter Continued, including proposals for major inleinal Teflooring and reordering. The project for rellooring and reordering al Great Wymondley also moved forward, based on many years of fundraising, including the sale of jams made by former churchwarden Cherry Carter The DAC recommended proposals for a new entrance al Stevenage, St Peter, Broadwater lo improve welcome and accessibility for all Chorleywood, St Andrew acquired the premises of foimer Hillside Baptist Church, a grade 11 Arts and Crafts building with a complex of halls, and has plans to refurbish the Hillside centre with a focus on youth work The DAC supported the parishes of London Colnoy and Rickmansworth in dealing with encroachment onlo ¢hur¢hyard land by developers on adjacent siles. The DAC also supported a number of churches in provKling advice about upholding the Churchyard Regulations, and specifically reviewed a number of applications involving unusual requests or family disputes. The DAC le8m were involved In presenting and supporting a range of tralnlng events for parishes either as DAC initiatives or in partnership with colleagues in other d&partmenls, covering mallers such as churchyards, healing options, understanding church buildings, opening churches during the day, making the most of parish- owned buildings, and using the online Portal for DAC applications and the Energy Footprint Tool. The Sl Albans Diocesan Board of Finance 13 Members, report Year to 31 December 2022 DIOCESAN BOARD OF EDUCATION Introduction Against 8 challenging political, financial and educational ba¢kdrop. the D8E has sought. across 2022, 10 provide the schools il supports with slabilily. clarity and confidence as they seek to continue to flourish as Church of England educational communities. Adjusting and adapting ils key priorities to meet the needs of schools the DBE, through ils Schools Team, has priorilised the pastoral and professional care of headleachers and school governors, high-qualily resourcing lo support Christian character, and a comprehensive training and development offer blending online and face-lo-face sessions. Alongside this school-facing, resourcing role, the DBE continues lo support school re-organisalion and ralionalisalion across the Diocese, maintaining strong working relationships with key delivery partners. Feedback from schools continues lo refeience the quality of the nurture. support and pastoral care the DBE provides to ils school communit￿$ and the reassurance this bTings when navigating a complex and increasingly challenging educational landscape. Church schools Living God's Love in new ways In Living God's Love, church schools in the Diocese are increasingly focusing their activities around unique Christian vision for education that reflects the Commynily they setve and their historic Christian foundation. In January. the children at st John's Infant & Nursery School in Radlell exploied Iheirchrislian vision. The following Bible verse had been chosen lo represent their purpose.. 'Slart children off on the way they should go and even when they are old they will not turn from it., Proverbs 22..6. The school were thankful lo have their local vicar, Revd Oliver, begin their special moining with a talk about going on a pilgrimage. Partnership with parishes continues to enrich schools, Christian vision. The eslablishmenl of a unique Christian vision lor education impacts all areas of school life, including collecltve worship and spiritual development. Sl Valentine's Day provided Sl Augustine's Academy in Dunslable with the perfect opportunily lo celebrate with a special Wild Worship in their Forest School. As part of their worship. they searched for heart-shaped leaves. Pupils held them up lo their own hearts, feeling their heartbeat as they listened to a scripture reading from Corinthians 1'.13. Whilst pupils al St IppO￿lS Primary responded lo the conflict in Ukraine by writing prayers for peace. Every child's prayer was hung outside school. providing a focal point of reflection foi the local community. Through the exploration of their unique Christian vision, many pupils are finding ways of demonslraling courageoLJS advocacy. Children al Sl Michael's Primary, Bishop's Slortford, have always been passionate aboul'making a drfference.. Following work undertaken on global warming and environmental care. pupils had the idea of establishing 8 litter-picking club. Donations from the PTA (Parent Teacher Associalionl helptsd lo purchase equipment and soon the task of clearing litter from a local street began. Members of the public who met the group thanked them for making a difference lo the local community. As a Christian vision for educalitsn embeds itself in the life of a school, opportunities arise for pupils lo share in the leadership of spiritual development aclivilies. Pollen End Primary currenlty have six pupil Spiritual Leaders who are beginning to help deliver collective worship and are considering spiritual wellbeing across the school. In 2022, Year S and 6 children mel up with pupils from other local church schools lo talk about what they might do to promote spiritual awareness. The Board of Education offered them a goody bag containing resources lo help them do this, such as prayer-dice, a notebook, slickers and the book 'Flippin' Praise.. They have since begun to plan collective worship using this resource. The Dlocesan Board of Education Living God's Lovo in Education.. Enabling Lrfe In All Its Fullness 2022 Saw the Board of Education Continue to priorilise the resourcing of the Schools it supports. The Training and Development programme provided by the DBE continues to offer a comprehensive package The St Albans Diocesan Board of Finance 14 Members. report Year to 31 December 2022 of online and in-peTson courses. Across 2022, the Board has noted a shift in preference lo online training and has responded lo this. Similarfy, a quick response to the developing financial pressures in schools saw good uptake for specialist financial management training offered in the autumn of 2022. The developmenl of high-qualily resources for schools, particularly in the area of Christian character, ethos and vision remains a focus of the Board's work. 'Heart for the Earth,, a Iwo-year curated resource lo help Schools reflect theologically on the issues surrounding climate chango and the need lo move lo carbon neutral posilion was launched in Seplemberloclober 2022 81 the Diocesan Headleacher Conference and the Schools, Harvest Festival services in Sl Alb8n8 Cathedral. This has been well received and has recently seen partnerships develop with local providers, including Anglian Water. In supporting the work of schools and school leaders, the DBE chooses lo use some of ils discretionary funds lo facililale access lo national and regional courses that promote a Christian vision for education. In the summer of 2022. team members allended presentations from delegalgs on three couises, part funded by the DBE, the Church School Lead8rship Course, the Racial Idsntity and School Leadership course and the Church of England Pmfessional Qualification for Headship. Each was inspirational, combining honest reflection. quality of engagement with Christian vision and wisdom and compassion. In a similar manner, the DBE chooses to fund access lo The Young Leaders Award (run by Ih&Archbishop of York Youth Trust) and similar pupil leadership schemes. Children al a number of schools. such as Leverslock Gieen Primary School for example, look part in a range of leadorship activities across 2022, including planning lo create a greener environment In the churchyard, organising a Grandparents Tea Party, planting bulbs in the churchyard and sending thank you letters lo people in the Community. In sadder news, July 2022 saw the closure of Wareside VC Primary School. The DBE had 8UPPOrted this very small school closely over the previous four years, working alongside senior leadership and the governing body to try lo ensure a future for a school much valued by parents and members of the local community. Organlsatlonal and financial management Following a number of years operating through single-year development plans, the DBE introduced a Ihree-year strategic pL8n in January 2022, covering the whole of Ihe 2022-2024 triennium. Aligned to the core priorities of the national church and the Diocesan Board of Finance, the strategic plan ensures that. alongside its core educational activities, work in areas of synergy such as racial justice and carbon reduction has the giealest impact possible. 2022 saw the DBE continue lo focus on ensuring ils financial stability. The introduction of new conliacls of employment for DBF staff and the adoption of the DBF'S lolal return policy significantly increased confidence in the slabil(Ly of the DBE'S budgeting. An end-of year surplus will be used to establish a designated fund to support the creation of new Church of England schools and the formation of new Church of England muFti-8eademy trusts. Predictions over the next five years show the DBE in a stable financial position. With a stable financial basis lo work from, the DBE initiated, in 18le 2022, 8 review of ils financial govemance including strategic development. scrutiny and oversight. This work will be undertaken across 2023 by the Chair, the Director and Board member Tim Fleming, who will be supported by the Diocesan Secretary and Director of Finance. The aim of the process will be lo ensure that financial decision-making is transparent and is based on the best evidence possible. and that key declsions taken by the DBE. as a slatulory committee of the DBF, aTe monitored and scrutinised effectively and are basod on advice received from the DBF'S Director of Finance. The St Albans Diocesan Board of Finance 15 Members, report Year to 31 December 2022 Ke achievements The launch of 'Heart for the Earth,. a iwo-year curated resource lo help schools reflect theologically on the issues surrounding climate change and the need lo move to a carbon neutral position The delivery of three Schools Harvest Festival services al Sl Albans Cathedral, the first since 2018. The ongoing success of the 'ln8piREd' RE subject leadership course, authored jointly by Sl Albans and Canterbury dioceses and now spreading across the East of England The production of podcasts and online resources lo support the development of Collective Worship and Religious Education The further development of links with the Cathedral's Learning Department The expansion ofthe Diocese of Sl Albans Mulli-Academy Trust lo 13 schools by February 2023, including Northill CofE VA Primary and Wenlock VA Junior School, Lulon. The Sl Albans Diocesan Board of Finance 16 Members, report Year to 31 December 2022 DIOCESAN BOARD OF MISSION AND MINISTRY 2022 has been a signrficant ygar for the department, following a full independent review at the end of 2021. Recommendations have been pul in place to provide a more effedive spread of responsibilities and duties, to improve on adminislralive support and ulilise the skills of all members of the staff team. Key priorities have been collaboialively set lo clarify the aims, vision and values of the departmeTII, with nM)re fo¢ussed and streamlined measuring and reporting to the Board for Mission and Ministry of aclivily and achievements in line with the eight diocesan objectives. A further independent review was carr¢ed out on diocesan support for work with children and young people. Recommendations were to adopt a more radical approach with an emphasis on participation. rather than central provision. This would involve further developing partnerships with external organisalions like Launchpad and Youthwork Essentials,. subslanlial investment in loeal projects which help young people to grow in faith,. embedding a¢livily within existing parish Mission Action Plans and selling up a young leaders programme- the Alban Way. The proposed three team departmental structure was further divided into four teams- Ministry, Vocations. Flourishing Churches and Growing Younger and More Diverse. The core leadership ofleam leaders was established lo ensure Cross-departmenlal working and the integration of all activities in support of ¢hurch leaders, parishes and chaplaincies. The teams moved to a new purpose-buill office and meeting space in what was the Diocesan OtTi¢e Reception, wilh flexible working and hot desking for all officers and administrators. Bishop Michael moved lo a new role and Archdeacon Jane took on the chair of the Board for Mission and Ministry in September in the interim period. Ministry Developm&nt team 11 has been a good year for the Ministry Development Team. The first Clergy Wellbeing SuNey was issued in February, and the ne￿Y formed Wellbeing group has continued to meet regularly under the chair of Will Gibbs. The ongoing programme of training and development has had good lake up and feedback. Highlights wore'celebraling Imsdom,, a residential course for those long in ministry, the 'New to Post,, 'Incumbency Skills, and the 'Rural Deans, course which are run regionally with our neighbouring dioceses. All had excellent feedback as having made a significant impact on people's ministries. The online'New Incumbent's group, has grown and offers mutual support lo those al this critical stage of their ministries. We have continued the work wth improving our culture of diversity and inclusion and have trained euhl more people lo deliver the 'Conscious Inclusion. training across the dI0￿se. This year also saw a new training in 'Active Bystander, which is focussed on equipping people lo respond well when they are witnesses or victims of micro-aggressions. This was well received and is now a key part of the regular annual programme. Eighly-five clergy and lay leaders attended the first Mission and Minislry Day Conference in October, with five excellent speakers focussing on 'lnlo Deep Water,. The feedback was universally good or excellent, as providing inspiration. theological input and useful practical insight. All of Ihls. and the other events and workshops, were geared to working towards the vision of seeing our people and places flourishing in God's purposes and acl)ieving our eight diocesan objedives. Thg St Albans Diocesan Board of Finance 17 Members. report Year to 31 December 2022 Vo¢atlons team In July 2022, nineleen people were ordained Deacon - twelve were slipendiary and seven SSM. This was the largest number for several years. The matching of eurales with parishes and benefices continues lo be a core element of the Vocations Team's work. Fifteen people were ordained Priest al various locations around the D￿ceSe - twelve were slipendiary and three SSM. Due lo grealer financlal prudence, there will be a limit of len new Slipendiary Deacons each year from 2023. As of December 2022, twenly-six candidates were in conversation with a DDO orAssistanl DDO. We are encouraged by the way in whi¢h God seems lo be moving in the lives of these people. Forty-two ordinands were training for ministry acloss three year-groups. Of these, 14V/o are of non-white heritage. This compares favourably with the diocesan largel of 15DA of our ordinands lo be of non-white heritage. We appointed and trained four newvolunlaryAsslstant DDOS in September. This exira capacity is making a positive impact on the Vocations Team as the number of candidates grows. The Vocations Team is also ably assisted by a dozen voluntary Vocations Advisers who meet with candidates in the early stages of the process. The Vocations Team continues to run events lo encourage vocations, and also lo support those in discemmenl and training. In 2022, these included.. Seeking the Way lover three Salurdaysl and Will You Take th8 Call lone Salurdsy}, 88 well as speaking engagements at Deanery Synods and Clergy Chapters around the Diocese. Flourishlng Churches tèam Focussed work continued lo help reduee the number of out of dale and inadequate Mission Action Plans IMAPS) and lo increase the qualily and effectiveness of MAPS. The team facililaled teaching on Mission Action Planning for final, third year curates. Action Learning Sets were started lo enable leaders lo engage in the Missron Action Planning process more effectively with the support of peers. Plans developed for the Leading your Church into Growth 2023 Diocesan Conference and places having been filling quickly. At the beginning of the year 117 Churchwardens attended online training to equip them lo achieve the vision of flourishing and healthy churches as welcoming places for people lo encounter God in worship and fellowship. An inleraclive workshop on Growing Generous Giving was attended by representslives of hmenty churches around th& diocese in Juty. The team supported three Treasurer Round Table meetings throughout the year with Archdeacons on (Jigilal giving and stewardship. Furthor 8dvice, support and leaching on giving and stewardship was provided for leaders and churches. The diocese received national Church of England funding for a G¢ving Advisor post lo begin in 2023. Kate Ford was appointed as Giving Advisor with a brief ID SUPPOrt parishes in growing generous gThiing. Kate will al80 provide practical advice on digital and legacy giving and runnirig giving campaigns. Reachlng New People l Growing Younger and Mora Divorse The work of the Reaching New People project continues. with pioneering, new worshipping communities and a more general change of culture becoming embedded into the work ol the Mission and Ministry Department. The awarding of over 150 small gTanls lo parishes in all conlexis have helped lo launch or re-launch missional inilialives posl-pandemic. Further funding was made available specifically lo enable parishes lo sel up warm and welcoming spaces in response to the energy crisis. The St Albans Diocesan Board of Finance 18 Members, report Year to 31 December 2022 Strategic longer-lerm work has also beuun in larger Urban areas and new housing eslales. Larger grants have been made available to projects with the potential for long term sustainability and for growing younger and more diverse. Transforming Conveisalions coaching continued with a total of nearly 150 having completed this training. Coaching became further embedded into the work of the department a5 mandatory for all new curates and their Training Incumbenls. The first cohort of twelve accrediltsd advanced level coaches began training in the autumn with Ihe expedalion that they make use of their skills to benefit the wider diocese. A successful bid for innovation funding from the Vision and Strategy Team al Church House has enabled the set-up of the Alban way project for young leaders aged 18-35. A Cohort of twelve began al the end of the year and will meet regularly IhToughoul the next year lo develop a rule of live. spiritual PT8clices and to pray as a community. Further cohorts for younger school-aged groups are planned for 2023, in partnership with the Diocesan Schools team and local parishes. Further major funding was made available by the Chuich ol England for strategic Mission and Ministry projects al diocesan level. A funding consultation with local leaders was conducted in the autumn lo begin lo identify potential projects with vision, good leadership and deanery support in urban, town and rural conlexls. Funding would be available for nine years. Dan Drew had been heading up work of Reaching New People in the interim and was appointed as team leader for the Growing Younger and More Diverse team in Deeembgr. Phillippa Harding began an internship with the team in the autumn, focussing on the Alban Way. The team continues to support churches in developing and growing New Worshipping Communities which aim lo reach children and families- foi examplè, Messy Church and Outdoor Church. A sertes of networking events is planned for paKI youth and children's leaders as well as others passionate about young peopl&. Following this the work of the team will focus mre on recruiting and supporting new and existing volunteers. The Growing Younger and More Diverse team will recruit an adminislralor and further roles 10 5UPPOrt funding bids and the Alban Way in the new year. The Envlronment Rachel Johnston continues to work in a voluntary capacity as Diocesan Environm$nlal Officer. This involves supporting parishes towards Not Carbon Zero by 2030. 107 churches have registered and are working towards Eco Church awards. Thirty-seven have been awarded bronze awards and four have silver awards. Further national funding will be made available by the national church in the coming year. The Sl Albans Diocesan Board of Finance 19 Members, report Year lo 31 December 2022 STRATEGIC REPORT FINANCIAL REPORT FOR THE YEAR OvgNiew In spite of the continuing uncertainties in the world and the tangible impact that this has all had on the cost of living, parish share held up well. We had hoped for a 92Dkn Collection rate, bul actually achieved 92.5 %. This is still below the pre-pandemic iale of 93.9Yo. bul this does place us in a strong position ￿latiVe to many other Dioceses. We continue lo be concerned about the long-lerm ability of parishes lo pay parish share and their use of reserves for this purpose. We have continued lo control costs - 8 decrease in the pension contribution for clergy and a realignment of terms and conditions for Diocesan staff has contributed lo this. We remain prone lo the fact that a reduction in income cannot be met quickly with a reduction in our costs. Even a small drop in parish share has meant that we saw a delicil in our running costs for the year of £350k. This Is the third year in a row that we have reported a deficit. However due to the continuing commitment of parishes and our own cost control. we have been able lo ieduce il each year. Our assets remain strong in spite of 8 downturn in valuation al the end of the year resulting in unrealised losses of £2,551 k. Sales from the development at Linmere. via the property company, continue lo add lo our asset portfolio. giving us Ilexibilily in being able lo use our assets lo defray expenses and keep parish share increases as low as possib￿. whilst supporting our clergy via hardship grants during an economically difficult year. The strength of our asset base is one of the key reasons that we have been able lo adopt a policy of a total return for 2022. This adoption helps lo ease the pressure on our costs and liberates other funding for parishes engaging in missional activbties and addressing Net Zero Carbon challenges. We have reslrudured our designated funds this year so that we can fund activities through the coming years, thus strengthening ourselves for the future. Investment Approach Following a review undertaken by the Assets Committee the Board decided lo adopt a Total Return Investment approach, specifically.. Adoption of total return with 3 distribution rale of 3.50A. Draw down lo be calculated using the average of tho previous five years capital values. Application across all invested diocesan funds A base line asset value al 31 De￿mber 2017, £57.2 million in total though disaggregated lo individual funds and subject to CPI indexation Application from 1 January 2022. Review of the distribution policy every three years. The policy and ils application in 2022 is described in detail in Note 15. As a consequence of adopting a Total Return Investment approach investment income distribution in 2022 has been in eX￿sS of budgeted investment income. This has enabled funds to be allocated lo support Nel Zero Carbon and mission Inllialive8 in parishes through £642,000 of grant availability. Ethl¢al Investment The Board follows the guidelines established by the Ethical Investment Advisory Group of the Church of England. In addition the Board is commilled to Fossil Fuel diveslmenl following a Diocesan Synod resolution in October 2022.. Th81 this Synod ￿queStS the St Alb8ns D￿CeS￿n Board of Finance lo commit lo divest fmm any current inv8slments in fossil fuels and to commil to no future inv8slm8nl of funds in fossil fuel companies in line with the Church of England nationalpolicy. The St Albans Diocesan Board ol Finance 20 Members, report Year to 31 December 2022 Thsl this Synod further requ&sls the Sl Albans Diocesan BoaKI of Finance to con&der wilh thos8 compani8s investing on behalf of the Diocese how lo.. engage crilic211y on climate change in respect of the full range of inv8slm6nls.' implement an approach to nFove the enti￿ d￿Ces8n inv&slment portfolio to be nel zero carbon,. pursue inveslm8nl in aocordance with Diocesan polici&s on social juslKe, sustainability, and the environment, for example in affordable homes, renewablg energy, orforestry. Results for the year Total income amounted to £23.9m compared lo £25.3m in 2021. a Ilecrease of £1,460k, fewer sales in the pioperty company being miligaled by the sale of parsonage houses and a higher parish share receipts. The property company made sales of £2.9m in the year {£5.4m- 20211. During 2022, Parish Share contributions amounted lo £13.2m {2021 £12.97ml. This amount included ¢onlribulions by parishes in respect of earlier years shortfalls" of approximately £140k12021 £104kl. The collection rale for Parish Share for 2022 lamounl receivedlamounl requesledl was 92.5Yo12021 91.01%). Expenditure lotalled £21.7m in the year compared lo £22.3m in 2021. Nel income before revaluations and investment asset (iisposals amounted to £2.2m12021 £3.Oml. The nel realised and unrealised losses on investment properties and listed investments lolalled £1.8m {2021 £8.2m gain). The nel increase in funds for the year was £0.4m12021 - £11.3ml with the Common Fund showing an increase of £1.2m12021 £87kl, though this included transferring in £415k from other unrestricted funds lo cover the 2021 delicil and a lolal return transfer that provided an extra £615k of income. Flnanclal posltlon The consolidated balance sheet showed lolal funds of £203.Om {2021 £202.6ml. This figure included endowment funds of £159.6m12021 £156.9ml, the principal part of this being the parsonage houses fund amounting lo £76.9m12021 £75.8ml. Whore in¢ome arises from these funds, il may be used for general purposes of the charity and Iheiefore is credited to unreslricled funds. Also included in lolal funds were restricted funds lolalllng £14.1 m12021- £15.3ml. These monies have either been raised for, and their use restricted lo, specific purposes or they comprise donations subject lo donor- imposed conditions. Furtherdelails of these reslricled funds can be found in note 2310 the financial slalementS together with an analysis of movements in the year. Funds lotslling £21.3m (2021 £24.Oml had been designated, or sel aside, by the Board for specific purposes. These purposes and an analysis of the movements on the funds are sel out in note 24 to the financial slalemenls. The Sl Albans Diocesan Board of Finance 21 Members, report Year to 31 December 2022 FUTURE PLANS Tho Diocesan vision of Living God's Love will continue lo be promoted, lo encourage chuiches lo engage more missionally. Boards and Committees will conliriue working lo support that vision by resourcing parochial mission and ministry and offering help and guidance lo parishes as they seek lo Live God's Love. The theme of'Growing Younger and More Diverse. wll continue to be an important part of future work. The Bishop's Council will continue lo make recommendations about proposals for pastoral reorganisalion and 8UPPOrt and encourage emerging mission inbtialives, and seeking ways lo share good practice in parishes and deaneries. The Diocesan Board of Finance will continue lo work with ils Investment Managers to ensure maximum retums for the benefit of mission and ministry in the Diocese. It will also continue dialogue with parish treasurers over the impact of COVID-19 on parish and diocesan finances. The DAC will ¢onlinue lo respond lo the needs of parishes throughout 2023 and beyond through regular casework, sile visits and circulating advice and guidance. There will be a particular focus on helping parishes lo meet the Nel Zero Carbon tsrgel by helping lo administer diocesan grants for energy audits, providing general advi￿ and resources. and specific advice at sl(e visits or in response lo applications. The Committee will continue to build up work in olhei areas of the environment, especially biodiversity and climate resilience, to ensure that parishes are well-prepared for the effects of climate change. The DAC team will also resource and support parishes in the care and development of ¢hurch buildings by updating Conlenl for the new website and Resources Cenlre. This will be informed by parishes and huild upon work already started in 2022. such as updating the DAC'S advice leaflet on electrical wiring following complications in the high level wiring al Royslon. The DBE. in maintaining the following strategic priorities for 2022-24, will continue to ensure il has sufficient capacity lo respond to unexpe¢led situations and therefore maintain ils high standards of SerV￿e lo schools.. The DBE will continue lo ensure that a minimum of 900/0 of schools are deemed to be good or excellent church schools (as defined by SIAMS} and support the development of Christian pedagogical approaches lo teaching and learning The DBE will continue lo deliver dDcesan-wide init4alives which promote a shared understanding of Living God's Love through community, worship and prayer, extend and develop work lo promote the wellbeing of the whole school community, promote and facililale oulslanding leadership and governance which supports excellence in church schools and develop Church of England provlsion across the Diocese of St Albans. The Board for Mission and Ministry will continue supporting Living God's Love and our eight mission and ministry objectives of.. More aclivilie8 that seek to grow discipleship enabling us lojoin in with God's action in the worfd Parishes equipped with appropriate ministerial capacity Enhanced wellbeing of our ministers Churches growing younger and more diverse Parishes that are financially sustainable More New Worshipping Communities Parishes operating safely and with good governance Net Carbon Zero by 2030 The St Albans Dlocesan Board of Finance 22 Members, report Year to 31 DeGembei 2022 However. within our work lo support each objectwe we will give particular attention to.. Developing ourwork lo grow youngerand more diverse disciples of Christ, including our Growing Younger and More Diverse Strategic Programme. Starting further cohorts of The Alban Way spirf(ual fomiation pathway for young adults, young people and children. Running Leading Your Church into Growth and the annual MissKJn and Ministry Day Conference. Increasing the number of effective up lo date Mission Action Plans. Reviewing Initial Ministerial Education Phase 2 Ilor Readers and Curates in Irainingl. Reviewing the lay ministry training provision. Growing the number of younger and more diverse people exploring a vocation lo lay and ordained ministry. The St Albans DI￿esan Board of Finance 23 Members, report Year to 31 December 2022 PRINCIPAL RISKS AND UNCERTAINTIES The Board has reviewed the risks faced by the charity. Immediate risks concern the fragility of recovery from the pandemic, compL7unded by the iise in the cost of living and the international tensions, and how they impact attendance and the ability of people to give. In addition, il has identified four main risks namely Safeguarding, IT Security, Parish Share and closed churches. Safeguardlng The di0￿se recognises that current and non-re¢enl safeguarding concerns can lead lo abuse for individuals and repulalional and operational damage for the diocese. The diocese lakes the creation of safe churches as an essential responsibility in line with the House of Bishops, Guidance and is committed to increasing training compliance for all involved with young people and vulnerable adults in the diocese and parishes. The diocese has safely recruited a new independent chair as well as two new members to the Diocesan Safeguarding Advisory Panel IDSAPI. All are experienced safeguarding practitioners and managers from our statutory partners. A new three-year strategy commenced in 2023 and the diocesan safeguarding team look forward to the challenge of achieving the action plan the accornpanies it. The le8m are Sufficient￿ resourced and manage all risks reported, and work hard with parishes on preventative safeguarding slralegies. The team continue lo report all safeguarding serious incidents to the Charity Commission in line with House of Bishops Guidance. Information Sharing Agreements are now in effect between the diocese and the relevant poli￿ services, and we continue to maintain good relationships with the slalulory agencies. Parlsh Share Scheme The Board continues lo pay ¢areful attention lo the Parish Share Scheme which determines the allocation of contributions needed from each parish to maintain the Common Fund. Parish Share is the main funding source for the Di0￿se, so even a small percentage fall has significant implications for funding. The Board regularly discusses the structure of the scheme and assesses the understanding and support of the scheme across parishes in the Diocese. 11 has sel up a working party lo review various aspects of the scheme. which will report to the Board in 2023. The Board also monitors. on a regular basis. the collection rale of contributions received from individual parishes, with a view lo identifylng al an early stage those parishes which are likely lo have difficU￿leS in meeting their Parish Share. IT Securlty The Board is aware of the increasing use of, and demand upon, IT services and the increased threat posed by those with Malicious inlenl. In 2022 the Board was certified by the Government-backed Cyber Essentials Scheme for data security (highly regarded by the Information Commissioner's Office, ICOI, having passed the Cyber Essentials Plus which included Vulnerability and Penelralion lesling. We have added Ransonware protection to staff computers to help prole¢l them from malicious actors and completed securing all mobileltablel devices lo hllicrosoft Intune forenhanced securbty and improved deployment. We are eonlinuing lo move computers to Intune as they come lo end-of-life and plan to complete this in 2023. In order lo strengthen our defences against allacks, via malicious emails and phishing allacks, staff had been re￿ivIng 'lesl phishing, emails to train them lo detect these. Since that lime, the standard has improved to represent a low threat level with 98Qh of users ranked al low risk. The lesling will continue to ensure that the The St Albans Diocesan Board of Finance 24 Members, report Year to 31 December 2022 stafl awareness level is at ils highest al all limes. There will be annual lesling of Cyber Essentials Plus lo ensure that the highest levels of defence continue. The Board considers Cyber Security to be a conllnuing risk. It eonlinues lo take professional and government advice and lo act upon il lo seek to miliqale the risk as far as possible. Closed Churches Closed churches become the responsibility of the DBF during the Slalulory u8e-seekSng period. During this lime, the Board has liability for insurance, maintenance and necessary urgent repair. No new cases emerged during the year and progress was made on existing cases. Al Lulon. Sl Matthew, terms for a lease lo the Romanian Orthodox Church were agreed and they began using the building under an informal lease in February 2022. The annual rental income from a lease and a proportion of the proceeds ofthe sale of a closed church are slalulorily due lo the Diocesan Pastoral Account. The marketing of Lelchworth, Sl Michael began in August 2022 with several parties expressing an interest. Progress was made towards a polenlkil management agreement with a locally-formed trust lo manage the sile ofThundridge Old Church Tower. There were sales of land at East Hyde, a closed church now in the ownership of the Greek Orthodox Church. The St Albans Diocesan Board of Finance 26 Members. report Year to 31 December 2022 CUSTODIAN FUNDS AS at 31 December 2022, the St Albans Diocesan Board of Finance held funds on beha￿ of parishes, church schools and general trust funds within the Diocese with a market value of approximately £36.2m (2021 £42.7m} as Custodian Trustee. These assets are not included in the financial stalemenls. The funds are held predominantly as units in common investment lunds held by the Central Board of Finance ICBFI of the Church of England and are professionally managed on behalfof the CBF by CCLA Investment Management Limited. At all limes, funds held by the charity as Custodian Trustee are sègregated clearly from those belonging to the charity itself. RAISING FUNDS The charity raises funds through Parish Share and on occasions receives other donations and voluntary income. 11 aims always lo achieve best practice in the way in which il communicates with parishes, donors and other supporters. 11 lakes care with both the lone of communrcalions and the accuracy of ils data lo minimise the pressures on parishioners, parochial ¢oun¢ils, donors and supporters. 11 applies best practice lo protect their data and never sells data, never swaps data and ensures that communication preferences can be changed al any lime. The charity manages ils own aelivilies in ￿SpeCt to iaising funds and does not employ the services of professional fundraisers. The charity undertakes lo react to and investigate any complaints regarding ils 8clivilies for raising funds and lo learn from them and improve ils service. During the year. the ¢harily received no formal complaints about ils activities for iaising funds. The St Albans Diocesan Board of Finance 26 Members. report Year lo 31 De￿rnber 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT The Diocesan Synod is the democratically elected decision-making body of the Diocese and its standing committee, the eishop's Council. is responsible for the formulation of diocosan policy. Constitution The Sl Albans DiO￿an Board of Finance rs registered charity Icharily Registration No 2488871 and a company limited by guarantee (Company Registration No 00145227 IEngland and Wales}l. 11 is ¢onsliluted in accordance with Ihe Diocesan Boards of Finance Measure 1925. The Board of Finance is the financial executive of the Diocesan Synod and is responsible for the custody and management of the Synod's funds and the employment of all those paid directly from the funds. Much of the work of the Board is delegated lo ils executive committee, the General Committeg, or lo ils sub-commillees, the Property Committee. the Glebe Committee and the Assets Committee. Liability of the members of the company Each company member has undertaken lo contribute to the assets of the company in the event of il being wound up whilst he or she is a member, or within one year after he or she ceases to be a member. The conlribulion, which cannot exceed £1, may be applied toward the payment of the dobls and liabilities contracted before he or she ceased lo be a member. Related bodies The Board's staff provide administrative and financial serv￿e8 lo the Board of Education, the Board for Mission and Ministry as well as the Di0￿san Mission and Pastoral Committee and Diocesan Advisory Committee. All these bodies report lo the DI0￿$an Synod which has overall responsibility for policy. The Synod delegates ils day lo day business to its standing committee, the Bishop's Council. Organisation The members of the Board are empowered by the Articles of Association of the company lo act as the company directors of the Sl Albans Diocesan Board of Finance. The members also act as trustees of the Board for the purposes of charity legislation. The St Albans Di0￿san Board of Finance 27 Members, report Year to 31 December 2022 Members The members who served during the year land continuing unless othetwise slaledl were as follows.. Sub-commltteo Membershi Members ointedlResi ned Ex-officio Member The 8ishop of Sl Albans {The Rl Revd Dr A G C Smith} Clergy elected by the Dlocesan Synod The Reverend Dr G R Cappleman The Reverend K David The Reverend C Bunce The Reverend C Hudson The Reverend A Thomas 1 J8nu8ry 2022 1 January 2022 1 January 2022 1 January 2022 Lay Members elected by the Deangry Synod5 Archdeaconry of Sl Albans N K Challis T Fleming CBGage D Roberts Dr R L V Southern M Taylor 1,4,5 1 January 2022 1 January 2022 1 January 2022 Archdeaconry of Hertford C Bell CGBird M E Butcher J W Butler Dr M Ealon 11 April 2022 1,2,3.4.6,7 1,2,4,5 Archde8conry of Bedfo D C Clark DI D W Dallinger K Ebbage J Gales K Smith Members nomlnated by the Bishop of StAlbans The Archdeacon of Sl Albans The Archdeacon of Bedford The Archdeacon of HertfDrd A Brown OBE {Chair of Glebe Commilleel 1,2.3,6,7 1,2.3.6.7 1,2,3,6,7 1,3,4,7 Members co-opted by the Board B Crawford P Easlerbrook P R Lindle 1 January 2022 1 General Committee, 2 Property Committee, 3 Glebe Committee, 4 Assols Committee, 5 Audit Committee, 6 Parish Shares and Support Committee, 7 Parish Grants Committee The Sl Albans Diocesan Board of Finance 28 Members, report Year to 31 December 2022 Members During the year no member of the Board had any beneficial interest in any contract with the charitable company. During the year several members, who are also clergy within the Diocese, received stipends from the charitable company in connection with their religious and pastoral duties within the Diocese. However. no member receThred any remuneration in conne¢lion wilh their duties as members of the Board during the year. No exp8nses were inCUr￿d in the performance oftheir duties as Board members were reimbursed during the year Rèmuneration of key management personnel Key management personnel comprises all the members of the Board, together with the senior executives who are the Diocesan Secretary, the Director of Finance, the Eslales Secretary and the Diocesan Pastoral and Advisory Secretary. The remuneration of all lay membeis of staff, including that of key management personnel, is set according lo pay structures originally established by the Archbishops, Counal which have. in recent years, been adapted by the Board. These scales are reviewed annually within the confines of the Common Fund Budget which, is in turn, approved by the Diocesan Synod. Members of the Board, also part of key management personnel, do not receive remuneration for their roles either as trustees of the charity or directors of the Board of Finance. The clergy members of the Board, as office holders within the Diocese. re￿1ve housing and stipends as part of their clergy role. Clergy stipends follow regional benchmarks as agreed annually by the National Church Central Stipends Aulhorily. Member•selection and appointmènt Members can be co.opted lo the Board by existing members or they can be elected by a number of different enlilies including the Diocesan Synod and the Deanery Synods or nominated by the Bishop of St Albans. The Bishop of St Albans is an ex-officio member of the Board. Members of the Board are elected to seNe for a period of three years, after which period they may offer themselves for re- election. Elections were held at the end of 202110 appoint members for the lriennium l January 2022 10 31 December 2024. Members, responsibilities statement The members of the Sl Albans Diocesan Board of Finance are responsible for preparing the members, report and financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. On agreeing lo become a member of the charity. the members are thoroughly briefed by their co- members on the history of the ¢harily, the day-lo- day management, the responsibilities of the members, tho ¢urrenl objectives and future plans. The members are also encouraged lo allend any courses which they feel are re5evanl lo the development of their role, and to keep up-lo-date on any Changes in legislalitsn. Company law requires the members lo prepare fi'nancial slalemenls for esch financial year which give a true and fair view of the stale of affairs of the group and the charity and of the income and expenditure of the group for the financial year. Under company law the mernbeis musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stsle of affairs of the group and the charity and of the income and expendbture of the group for that period. Member induction and training An induction pack has been issued lo all members. The St Albans Diocesan Board of Finan￿ 29 Members, report Yearto 31 December 2022 Members. responsibilities statement In preparing these financial 8tatement8. the members are required to.. The members are responsible for the maintenance and integrity of the financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and disserninalion of financial statements may differ from legislalwjn in other jurisdictions. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in Accounting and Reporting by Charities.. Stslement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable In the UK and Republic of Ireland {FRS102)', make judgements and estimates that are reasonable and prudent., slate whether applicable United Kingdom Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls., and prgpare the financial slatomenls on the going concern basis unless it is inappropriate lo presume that the group and the charity will continue in operation. Trading subsldiary The charity has a wholly owned trading subsidiary, the Sl Albans Diocesan Property Company {Company No. 088993021. company incorporated in England wtlh a shale capital of £7,700,000 {2021 £1,700.0001. The principal activity of the company is property development. During the year the company made a nel profil of £947k 12021 £1,917kl and made a charitable donation of £510k 12021 £2.4ml lo the charity. This dOnat￿n enabled a reduction in the lax liabilty for 2021. In 2018, the charity loaned the subsidiary £7m for two years lo aid working capital. £1 m of this was repaid in 2019. The remaining £6m loan was exchanged for equity in the company. The members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy al any time the financial positIDn of the charity and which enablo them lo ensure that the financial slalemenls comply with the Companies Act 2006. They have responsibility for safeguarding th& assets of the charity and he￿￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. The members, report, including the strategic report. was approved by the membels and signed on their behalf by.. olin Bird Chairman of the Board of Trustees Each member confirms that.. so far as the member is aware, there is no relevant audit information of which the charity's auditor is unaware,. and David While Diocesan Secretsry the member has taken all steps that helshe ought to have taken as a member in order to make himlherself aware of any relevant aud information and to establish that the chaiity's 8udf(or is aware of that infomalion. Approvod on.. zz 2023 This Confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The St Albans Diocesan Board of Finance 30 Independent auditor's report to the members of The St Albans Diocesan Board of Finance Year to 31 December 2022 Opinion We have audited the financial statements of The St Albans Diocesan Board of Finance {Ihe 'charilable company'l and its subsidiary (the 'group'l for the year ended 31 December 2022 which comprise the consolidated slalemenl of financial aclivilies. the consolidated and charity balance sheets. the consolidated slalement of cash flows, the principal accounting policies and the notes lo the financial slatemenls. 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). Concluslons relating to going concern In auditing the financial stalemenls. we have concluded that the members. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material LJnGertainlies relating lo events or conditions that, individually or collectively, may cast significant doubt on either the charitable company's or the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 8Uthorised for issue. Our responsibilities and the responsibilities of the members with respect lo going con￿rn are described in the relevant sections of this report. In our opinion, the financial stalemenls.. • give a true and fair view of the stale of affairs of the group and of the charitable company as at 31 December 2022 and of the group's income and expenditure ft)r the year then ended., Other infomiation The members are responsible for the other inft)rmalion. The other information comprises the information inclLJded in the annual report and financial slatemenls, other than the financial slalements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other infomialion and, except lo the extent otherwise explicitly slated in our report. we do not express any form ofassurance conclusion Ihereon. • 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. In connection with our audit of the financial statements, our responsibility is lo read the other Information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained Sn the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies apparent material misslalemenls. we are required lo determine whether there is a material misstatement in the financial slalemenls or a material misstatement of the other information. If, based on the workwe have performed, we conclude that there is a materi81 misstatement of this other infomialion, we are required to report that fact. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. or We have nothing to report in this regard. The Sl Albans Diocesan Board of Finance 31 Independent auditor's report to the members of The St Albans Diocesan Board of Finance Year to 31 December 2022 Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. Responsibililies of members As explained more fully in the members, responsibilities statement, the members 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 members determine is necessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due lo fraud or error. + the information given in the members, report, which is also the directors, report for the purposes of company law and includes the strategic report, for the financial year for which the financial slalemenls are prepared is consislenl with the financial stalemenls., and In preparing the financial stalemenls, the members are responsible for assessing the group's and the charitable company's ability lo continue as 8 going concem. disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the members either intend to liquidate the group or the charitable company or lo cease operations, or have no realistic alternative but to do so. + this report has 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 understsnding of the group and the charitable company and its environment obtained in the Course oflhe audit. we have not identified material misslalements in the members, report. including the strategic report. Audltor's responsibilities for thg audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl. whether due lo fraud or error. and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK} will always delecl 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. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 reqLJires us lo report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us., or • the charitable company's financial statements are not in agreement with the accounting records and returns., or certain disclosures of members, remuneration specified by law are not made., or Irwularities, including fraud, are instances of non- compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misslatemenls in respect of irregularities. including fraud. The exlenl to which our procedures are capable of detecting irregularities, including fraud is detailed below. we have not received all the information and explanations we require for our audit. The Sl Albans Diocesan Board of Finance 32 Independent auditor's report to the members of The St Albans Diocesan Board of Finance Year lo 31 December 2022 Audltor's responslbllltles for the audlt of the financial statements Icontinuedl Our approach lo identifying and assessing the risks of material misslalemenl in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. considering the internal controls in place to miligale risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. + the audit partner ensured that the engagement team collectively had the appropriate competen￿, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., • performed analytical procedures to identify any unusual or unexpected financial relationships., performed subslanlive testing of expenditure,. + tested journal entries to identify unusual financial transactions., and • we identified the laws and regulations applicable to the ¢haritable Company and group through discussions with members and management, and from our knowledge and experience of the sector.. assessed whether judgements and assumptions made were indicative of potential bias. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company and group, including the Charities Act 2011, the Companies Act 2006 and Church Assembly 2n(S General Synod Measures., In response to the risk of irregularities and non- compliance with laws and regulations, we designed procedures which included, but were not limited lo.. agreeing financial statement disclosures lo underlying supporting documentation., reading the minutes of meetings of those charged with govern2n¢e' and * we assessed the extent of compliance wlh the laws and regulations identified above through making enquiries of management and inspecting legal Corresponden￿.. and enquiring of management as lo actual and potential litigation and claims. + identified laws and regulations ommunicated within the audit team regularly and the team remained alert lo instan￿S of non-compliance throughout the audit. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non~compliance with laws and regulations to enquiry of the members and management and the inspection of regulatory and legal correspondence. if any. were We assessed the susceptibility of the charitable company's and group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management and those charged with governance as lo where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and Auditor's responsibilities for the audlt of the financial statements Icontinuedl Material misslalemenls that arise due lo fraud can be harder to delecl than those that arise from error as they may involve deliberate concealment or collusion. The Sl Albans Di0￿san Board of Finance 33 Independent auditor's report to the members of The St Albans Dlocesan Board of Finance Year to 31 December 2022 A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.ukJaudilorsresFx)nsibililies. This description forms parl of our auditor's report. Use of our report This report is made solely to the charitable company's members. as a body. in accordance with Chapter 3 of Parl 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those mallers we are required to slate lo them in an audilorfs report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assun* responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Catherine Biscoe, Senior Slalutory Auditor For and on behalf of Buzzacoll LLP. Slatulory Auditor 130 Wood Street London EC2V 6DL Dale.. 25 July 2023 The Sl Albans Diocesan Board of Finance 34 Consolidated statement of financial activities Year to 31 December 2022 Non- Charilable trading funds £'ooo Endow- ment Restrlcted funds funds £'ooo £'ooo Un. restrlcted funds £'ooo Total 2022 £'ooo TolAI 2021 £'ooo Notes Income and endovvments from.. Donations and legacies Inveslrnenls Trading Activities Charitable activities Other SOLJrees Total Income 193 311 13,230 542 13,423 2.292 2.926 4.139 1,072 23,852 13,080 1,912 5,444 4,493 383 25,312 1,439 26 2,926 3.432 707 1,072 2.511 3,936 14,479 2,926 Expenditure on.. Raising funds Charitable aetivities Promotion of the WQTk of the Church of England in thé Diocese of Sl Albans 288 170 51 ,669 2,178 3,664 3,573 3,743 15,924 15,975 19,497 21,675 18,668 22,332 Total èxpèndlture Net income lexpenditurel before Investment gains and 10s5es 288 1,669 2,223 193 11,4961 1,257 2,177 2.980 Realised gains1105sèsI on disposal of investment propety and listed investments 14 846 1911 1481 707 1.309 Unrealised Ilosses) gains on investment property and listed inve5ttnenis 14 11,0571 11.0811 14131 12,5511 6,862 Net In¢ome before transfers and taxation 2,012 19791 11,9571 1,257 333 11.151 Total Reluin transfer Net income lexpenditurèl for the year after Totsl Return transfer 12,262 2,262 12501 19791 305 1,257 333 11.151 Other transfers between funds 21 2,747 12751 11,7541 17181 Corporation lax {charge} credit 12 11021 11021 114 Net Income lexpenditur81 for the year 2,497 11,2541 11.4491 437 231 11,265 Other recognised gain8 and losses.. Actuarial gains 30 174 174 Net movern8nt in funds Fund balances brought forward at l January 2022 Fund balances carrled fO￿ard at 31 December 2022 2,671 11,2541 11,4491 437 405 11.276 156,908 15,329 25,411 4.986 202,634 191,358 1 $9,579 14,075 23,962 5,423 203,039 202,634 All of the group's activitie5 derived from continuing operations during the above financial period. The St Albans Diocesan Board of Finance 35 Comparative consolidated statement of financial activities Year to 31 December 2021 Non- Gharilable Iroding lunds £'ooo Endow- ment Restricte funds funds £000 £'ooo restrictèd funds £'ooo Tot81 2021 £000 Notes Income ond endowments from.. Donations and legac￿5 Invgslnjonts Tmding activities Ch8fAlable activities Olhersources Total income 57 318 13,023 7,594 13,080 1,912 5.444 4.493 383 25,312 26 5,444 3,564 929 383 383 3,959 75,546 5,444 Expendlture on.. Raising funds Charitable èetivitles ProrFJofion of the WO￿ of the Church Of England in the Diocese of St Albans Tofal expendituro 147 290 3,224 3,664 2,980 3, 127 15.688 15.978 18.668 22,332 3,224 Net income (expenditure) bofore investmentgains and losses 380 812 (432) 2.220 2,980 Realised gains on disposal of inv8slment property aftd listed inve8lmen18 1,070 188 51 1,309 Un￿alise(l gains t)n investmfjntPffDP8rty and listed investments 4,806 1,322 734 6,862 Net income before ttansfers and taxation 6.256 2,322 353 2,220 11,151 Transfers belween fvnds 21 2.837 (392) 374 (2,819J Coo)orèlion lax credit (¢hargeJ Net income (expendNture) for the year 12 114 (485) 174 11,265 9,093 1,930 727 Other r8Gognised gains Bnd loss&s.' Acluarial gains 30 Net movèment tn funds 9.104 1,930 727 (485) 11,276 Fund balancos brought forward at 1 January 2021 147,804 13,399 24,684 5.471 191,358 Fund balances carrled fonvard at 31 December 2021 156.908 15,329 25,411 4,986 202,634 All of the group's activities derived from continuing operations during the above financial period. The Sl Albans Diocesan Board of Finance 36 Consolidated balance sheet 31 December 2022 Non- charflsbl& Iradlnll funds £'ooo Endowment fuTrds £'ooo Re8ldcled Unre$lrl¢ted funds funds £'ooo £'ooo Total 2022 £'ooo Total 2021 £'ooo Noles xèd assets T8llgible 8ssels lTrve51ment5 13 14 77,678 69.369 146.g37 12,467 6.243 18.700 9D,035 87.644 177,679 90,311 85,ff26 175,gJ7 12.042 12,042 Curr&nl 6ssets Slod<.'18nd under develowenl rjablors-due wllhin on8 year FJeblors- du8 after one year Shoil re￿ deposits C8sh 81 bBnk afid ln h8nd 16 12,078 2,743 12,078 3,864 282 8,609 2,372 26,996 11,535 3,344 464 12,635 1,812 29,790 17 17 48 67 283 4,904 2,369 8.352 2,640 ,060 2.68B 1.127 14,B29 Creditors.. amounts falllng du8 wllhln one ye8r N&t current assets f8 12321 B95 11,95 27,840 2,6B8 7,712 14,622 26,917 before eliminating Inter-fund baloncds Inler-fulld bala￿CeS Total assets less currenl Ilabllltles 149,82& 9,954 159,579 12,937 1.138 14.070 26,412 12,fj22 24.290 4.622 18.9701 5.852 203,596 203,777 203.596 203.777 Credltors.. amounls faling du8 gft8r one year 19 13281 12291 16671 17221 Provlslons for Ilabllltles Total het 8ss?is 20 169.579 14,076 23,962 6.423 203,039 202,634 Rgpresented by.. Thè funds oltho group ETrdowmenl luiids Restric￿d lunds Un￿$t￿Glad funds thlon4h8rit8ble Ir8diro funds 22 109,579 169,679 14.076 22,962 S,423 20J,OY9 156,908 15,329 25,411 4,986 202.634 23 14,075 24 23,962 24 6,423 5,423 159,579 14,07S 23,962 Approved by the members of the Board and signed on their behalf by.. Colin Bird Chairman Approved on.. The Sl Albans Diocesan Board ol Finance Cornpany Regislr21ion Number 00145227 (England and Wales) The Sl Albans Diocesan Board ol Finance 37 Comparative consolidated balance sheet 31 December 2021 chèritèble lTrding funds £000 Enclowm&Trt funds ro( R8Str￿le￿ unrest￿¢{8d furpds funds £'ooo Tot81 2021 Noles Flxedassets T8ngible 8SS81s Inv8Stm8nlÈ 73 14 76.626 66.069 142,695 13,685 6.616 20.301 90.317 85,626 175,931 12.941 12.941 Current8sset8 stock.. lènd ttndèrdtsv8lopm&nt Debtors- du8 wilhin on8 y88r Debtors- due aftgrone ye8r Short tgnn deposils Cash al bank andin haF 16 17 17 11,535 2.434 11,535 3,344 42 74 794 464 4,856 1,682 7,796 1484) 7,312 6,297 1,259 223 730 14.322 (350) IS,972 12.635 1,812 29,790 (1.95Ql 27,840 6,339 (178) 6.161 1,333 1938) 395 Credltors.. arnounls fallingdu8 wifh1ft7 OP78 ￿ar Net ¢tsrrenta55p¢s 18 Total assets less currentllabllltles before ellminating inter-fundbal8nces Int8r-lundbèlanc8S Total essets less cutrenl IAablllllÈs 148.856 8,473 157,329 13,3 1,993 15.329 27,613 (1, 708) 25.905 13.972 18, 758) 5,214 203,777 203,777 Credltors.. amounls f&lling 8ft8ron8 y88r 19 (494) {228) 1722) Pmvlslons forllablllrfes Total net assets 20 14211 156,908 1421) 202.634 74329 25,417 4,986 Represented by.. The funds olthe gmup Endowm&nlfunds Reslriclgd funds Unr&slrict8d funds Non-chaFtlable IradiAU funds 22 23 24 24 756,908 156.908 15.329 25,411 4,986 202,634 15,329 25.411 4,986 4,986 156,908 75.329 25,411 The St Albans Diocesan Board of Finance 38 Charity balance sheet 31 December 2022 Endowment Rcstrlcted Unrestrlcted funds fund5 fLinds £'ooo £'ooo £'ooo Total 2022 £'ooo Total 2021 £'ooo Notes Fixed assets Tangible assets Investments 13 14 77,578 77,059 154,637 12,457 6,243 18,700 90.035 95,344 185,379 90,311 87,326 177,637 12,042 12,042 Curient a85ets D8btors- due wilhln onè yaar Debtors- du& after on6 yaar Short term deposits Cash al bank and In hand 17 17 1,480 67 796 283 4,904 2,369 8,352 2.343 283 8.604 2,369 13,599 8,136 464 12.412 1,882 22,694 2,640 1,060 4,120 1,127 CrgLlltor5'. amounts falling due wlthln one year Nèt current assets 18 12321 895 16401 7,712 18721 12.727 11,6001 21,094 4,120 Total as$pt$ less current Ilabilltles bgfore ellminating inter-fund balanees 158,757 12,937 26,412 198,106 198,731 Inler-fund balances Total a888ts Ip55 current Ilabllltles 822 159.S79 1.138 14,075 11,9601 24,452 19B,106 198,731 Cr¢tiitor6: amounts falling due after one year 19 13281 13281 {4941 Provlslons for liobilities Total net ass8t8 20 {4211 197.816 159,579 14,075 24,124 197,778 Represented by.. Thè funds of the charlty Endowment funiS$ Restricled funds Unreslricled lund8 22 23 24 159,579 159,579 14,075 24,124 197,778 156,908 15,329 25,579 197,815 14,075 24,124 24,124 159,579 14,075 Approved by the members of the Board and signed on Ihgir behalf by.. Chairman Approvod on.. IL Zo2S The St Albans Dlocesan Board of Finance Company Registration Number 00145227 IEngl8nd and Wales) The Sl Albans Diocesan Board ol Finanoe 39 Comparatlve charity balance sheet 31 December 2021 Endowment ResliFcl8d Unresliicled funrls runds funds £'ooo £'ooo Total 2021 £'ooo Notes Fixed assets Tangib16 assets Investments 73 14 76,626 67, 769 144.395 13,685 6,616 20,301 90,311 87,326 177,637 12,941 12,941 Ctsrrent assets D&blors- due within (me y&ar Deb10￿- aft8ron8 year Short tenn deposits Cash 8t bank and in hand 17 17 7,268 74 794 464 4,856 1,682 7, 796 (484) 7,372 8, 136 464 12,412 1,682 22,694 (1,60Q) 21.094 6,297 1,259 73,565 (178) 13,387 t,333 (938) 395 Creditorn.- anlounls falling due wthin one ye8r Not current assets 18 Total assets less currentllabllltlès before eliminating inter-fund balances f 57,782 13,336 27,613 198,731 Inler-fund balances rotal assets less current liabllltles (453) 157,329 7.993 15,329 (1,540) 26.073 198,737 Crgrlitors.. an￿￿￿1$ falling due 8fterone ye8r 19 (494) (494) Provtsions forliabtilities rotal net assets 20 (421) 156,908 (421) 197.816 15,329 25,579 Represented by.. The funds of the charity Endowmgnl funds Restricled luntls Un￿StrICted funds 22 23 24 156,908 756,908 15,329 25.579 197.816 15,329 25,579 25,579 156,908 15.329 The Sl Albans Diocesan Board of Finance 40 ## **Summary consolidated income and expenditure account** Year to 31 December 2022 This summary consolidated income and expenditure account relates to income funds only (i.e. excluding movements on endowment funds) and has been prepared to comply with the Companies Act 2006. ||**2022**
**£’000**|2021
£’000| |---|---|---| |Total income of continuing operations
Total expenditure of continuing operations
Net (expenditure) income for the year before transfers,
investment gains and losses and taxation
Total return transfer
Other transfers to endowment funds
Net (expenditure) before investment gains and losses and taxation
Investment (losses) gains
Taxation (charge) credit
Net(expenditure)income for theyear as defined bythe Companies Act 2006|**21,341**
**(21,387)**|24,930
(22,329)| ||**(46)**
**2,262**
**(2,747)**|2,601
_—_
(2,837)| ||**(531)**
**(1,633)**
**(102)**|(236)
2,295
114| ||**(2,266)**|2,173| Total income as defined by the Companies Act 2006 comprises £17,405k (2021 – £20,990k) for unrestricted and non-charitable trading funds and £3,9364k (2021 – £3,940k) for restricted funds. A detailed analysis of income by source is provided in the statement of financial activities. Detailed analyses of expenditure are provided in the statement of financial activities and related notes. Net expenditure before investment gains and taxation for the year of £531k (2021 – £236k) comprises net expenditure of £449k (2021 - £656k) on unrestricted and non-charitable trading funds and net expenditure of £82k (2021 – £420k income) on restricted funds. The summary consolidated income and expenditure account is derived from the consolidated statement of financial activities on page 35 which, together with the notes to the financial statements provides full information on the movements during the year on all funds of the group. The St Albans Diocesan Board of Finance **41** Consolidaled statement of cash flows Year to 31 December 2022 2022 2021 Notes Cash flows from operating actSvitles: Nel cash used in operating activities 12,934} 17191 Cash flows from investing activities: Dividends, interest and rent from investments Proceeds from the disposal of tangible fixed assets Purch8se of tangible fixed assets Proceeds from the disposal of investments Purchase of investments Taxation paid Decrease in cash deposits Net cash provided by investing activities 2.292 1,927 16451 3,944 18.069) {2461 4,026 3,229 1,912 718 11,5031 7,850 116,0481 7.370 299 Cash flows from flnanclng actlvitles: Repayment of borrowing Net cash used in financing activities (41 {41 Change in cash and cash equlvalents in the year 295 1424) Cash and cash equivalents at l January 2022 Cash and cash equivalents at 31 December 2022 2,747 3,042 3,171 2,747 Notes to the statement of cash flows for the year to 31 December 2022. A Reconcillatlon of net Income to net cash flow used in operating activities 2022 2021 Net income {as per the statement of financial activities) Adjustments tor: Depreciation charge Losses {gainsl on investments Dividends, interest and rent from investments Surplus on disposal of tangible fixed assets Ilncreasel decrease in stocks Increase in debtors Decrease in creditors Pension adjustmènt Net cash used in operating activities 333 11,151 66 1,844 {2,292) {1,072} 15431 11291 18941 12471 12,9341 68 18,1711 11.9121 1383) 252 1153) 11,144) 14271 1719) B Analysis of cash and cash equlvalents 2022 2021 Cash al bank and in hand Cash held by investment managers Total cash and cash equivalents 2,372 670 3,042 1,812 935 2,747 The Sl Albans Diocesan Board of Finance 42 Principal accounting policies 31 December 2022 Basls of accountlng The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below. In accordance with the provision of paragraph 24.7 of the SORP, a statement of financial activities for the charity alone has not been prepared. The charity had total income for the year of £21,472k 12021 £20,423kl. total expenditure of £20,344k 12021 £19,176k} and investment losses of £1,844k 12021 £8,171kl, resulting in nel expenditure of £716k12021- £9,418k income). Basis of preparation These financial statements have been prepared for the year lo 31 December 2022 with comparative information provided for the year lo 31 December 2021. Crltlcal accounting estimates and areas of judgement Preparation of the financial statements requires the members of the Board and management to make significantjudgemenls and eslimales. The items in the financial slalemenls where these judgements and eslimales have been rnade include.. The financial statements have been prepared under the historical Gosl convention with items recognised al cost or transaction value unless otherwise staled in the relevant accounting policies below or the notes to these financial statements. + the valuation of investment properties.. The financial statements have been prepared in aecordanee with Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2006, except where the special nature of the St Albans Diocesan Board of Finance's operations has required adaplakn'on of the fomiats 88 allowed by section 396(51 + the useful economic life of tangible fixed assets.. • the valuation of stock of land under development., and + The estimation of future income and expenditure flows for the purpose of assessing going concern (see below). Going concern The members ofthe Board have assessed whether the use of the going concern assumption is appropriate in preparing these financial slalemenls. considering the ongoing impact of lockdown both al the lime and on a return of people lo worshipping in their local community. The members of the Board have made this assessment in respect to a period of at least one year from the date of approval of these financial stalemenls. The charity constitutes a public benefit entity as defined by FRS102. The financial statements are presented in sterling and are rounded to the nearest thousand pounds. Basls of consolidation The financial statements consolidate, on a line by line basis, the results of the charity and its wholly owned subsidiary company. Sl Albans Diocesan Properly Company Limited, made up to the balance sheet dale. The Sl Albans Diocesan Board of Finance 43 Principal accounting policies 31 December 2022 Going concern Iconlinuedl For the charity, the effects of the past two years impact its activities both directly and indirectly. The slow return of people to their local church has resulted in a reslriclion of income for those parishes which rely on giving through 'lhe plate, or income from letlings of church properly. and therefore on their ability lo pay the parish share. The charity itself faces a loss of income from ils properties as well as ils listed investments as well as uncertainly over the current and future value of ils assets which have already suffered significant volatility. Donations are recognised when the charity has confirmation of both the amount and selllement dale. In the event of donations pledged bul not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject lo conditions that require a level of performance before the charity is enlilled lo the funds, the income is deferred and not recognised until either those conditions are fully mel. or the fulfilmenl of those conditions is wholly within the control of the charity and il is piobable that those conditions will be fulfilled in the reporting period. In accordance with the Charities SORP volunteer time is not recognised. Steps have been taken, and will continue, lo reduce expenditure. The high percentage of the Diocesan budget expended on clergy stipends and housing means that significant savings take lime lo implement. The Board has prepared and reviewed five-year forecast which provides us with a rinance strategy that underpins the Diocesan missional strategy, whilst allowing us lo control costs. Nevertheless financial recovery will take some lime. Legacies are included in the slalement of financial activities when the charity is entitled lo the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Grants from government and other agencies have been included as income from activities in furtherance of the charity's objectives where these amount lo a contract for services, bul as donations where the money is given in response to an appeal or with greater f￿edoM of use, for example monies for core funding. The members of the Board have concluded that despite these challenges, there are no material uncerlainlies related lo events or conditions that may cast significant doubt on the ability of the charity lo continue as a going concern. The members of the Board are of the opinion that the charity will have sufficient resources lo meet ils liabilities as they fall due. Grants receivable on confirmation by the charity that specified performance criteria have been mel are accounted for only once such criteria have been satisfied. Income Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured reliably and il is probable that the funds will be received. Income is deferred only when the charity has lo ftjlfil performance related conditions before becoming enlilled lo il or where the donor or funder has specified that the income is lo be expended in a future accounting period. Income comprises donations and legacies, including Parish Share income, income from listed and property Iglebel investments, income directly related to charitable activities (including granlsl and the surplus on disposal of tangible fixed assets. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. The St Albans Diocesan Board of Finance 44 Principal accounting policies 31 December 2022 Income Iconlinuedl Interest on fvnds held on deposit is included when receivable and the amount can be measured reliably by the charity., this is nomially upon nolificalion of the interest paid or payable by the bank. Grants payable are included in the statement of financial activities when approved and when ommilled. Committnenl will usually arise when the intended recipient has either received the funds or been informed of the decision lo make the donation. Income from each sale of18nd under long term land development contracts recognised on completion. Costs of each sale are apportioned based on the proportion of the land area sold. School major repalr and capital projects The charity receives contributions from governors of Church schools in the Diocese in connection with major repair and capital projects lo Church schools and also Government grants in connection with the same. Under the School Condition Allocation {SCAI funding scheme, monies are received and then allocated or spent. Projects are agreed by the Diocese, under the statutory and non-slalutory guidance provided by the Department for Education IDfEI. Because the Diocese has some limited discretion over the application of funds, il is our view that all income and expenditure under the SCA should be included in these accounts. Monies received have lo be spent within a two-year lime period or ￿tUrned lo the DfE. Expenditure Expenditure is included in the statement of financial activities when incLJrred and includes any attributable VAT which cannot be recovered. Resources expended comprise the following.. Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees, staff costs associated with fundraising, and an allocation of support costs. b. The charitable activities comprise expenditure on the charity's primary charitable purFX)ses 8S described in the members, report i.e. promoting the work of the Church in the Diocese of Sl Albans including payments of grants. The expenditure includes both costs that can be allocated directly to such activit￿S and those indirect costs necessary lo support them. Support costs are those costs which enable charitable activities lo be carried out. These costs include the expenses relating to finance, human resources, property Management, communications and information technology. Where expenditure incurred relates lo more than one activity it is apportioned using the most appropriate basis. The St Albans DIC￿eSan Board of Finance 45 Principal accounting policies 31 December 2022 Tangible fixed assets All assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised. Investments Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently meastjred al their fair value as al the balance sheet dale using the closing quoted market price. Freehold land and buildings owned as al 31 December 2013 comprising parsonage houses 2nd corporate residential properties are included in the financial slalemenls al a valuation determined by the members of the Boaid as at 31 December 2013. The valuation, deemed to approximate to the value based on an existing use basis, was based on an insurance value determined by Rumball Sedgwick, Chartered Surveyors, as part of their quinquennial review. Other freehold land and buildings are included in the financial statements al cost, or where cost is not known, al a valuation determined prior lo 31 December 1999 by members of the Board. All of the above valuations have been deemed to be cost underthe transitional provisions of FRS102. All other tangible fixed assets are included in the financial slalemenls al cost. The charity does not acquire put options. derivatives or other complex financial inslrumenls. As noted in the Members. Report attached to these financial statements, one of the main forms of financial risk faced by the Charity is that of volalilily in equily markets and investment markets due lo wider economic conditions, the allilude of investors lo investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Glebe property comprising agricultural land. retail property and residential property held for investment is included in the financial slaterllenls al a valuation based on rental yield. The valuation has been determined by the members after consultation with their professional properly advisers. In the case of a small number of residential properties subject to long leases, rental yield comprises ground rent only and the resullanl valuation reflects this. Parsonage houses being buildings designed as, and used wholly or mainly for. private residential accommodation are not depreciated. Their value and conditions are reviewed annually by the members of the Board, who are satisfied that their residual value is not materially less than their book value. Realised gains lor losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent lo the first day of the financial year. Unrealised gains and losses are calculated as the differen￿ belmeen the fair value al the year end and their carrying value al that dale. Realised and unrealised investment gains lor losses) are Combined in the slalement of financial activities and are credited lor debiledl in the year in which they arise. Other freehold buildings which are used as private residential properties are not depreciated. The value and condition of the properties is reviewed annually to ensure that their residual value is not materially less than their book value. Computer equipment is wrillen off over 2 period of between three and six years and office equipment over a period of len years. based on cost, in order to write the cost of each asset off over its estimated useful life. Stock: land under devalopment Stock is slated al the lower of ¢osl and nel realisable value. The cost of stock includes the initial cost of the land, preliminary costs incurred prior lo the commencement of construction and borrowing costs. The Sl Albans Di0￿san Board of Finance 46 Principal accounting policies 31 December 2022 Debtors Debtors are recognised al their settlen￿nt amount, less any provision for non-recoverabilily. Prepayments are valued al the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. The endowment ftjnds comprise assets which normally musl be held a5 capital but, where permilled, may be applied towards meeting certain charitable aims. The income therefrom may be used either in accordance with the terms of the endowment, if stipulated, or for general purposes. The application of total return in 2022 does not change this and all transfers to unreslricled funds as a result of lolal return are in accordance with the terms of the endowment funds. Cash at bank and in hand Cash al bank and in hand represents such accounts and instruments that are available on demand or have a malurily of less than three months from the dale of acquisition. Deposits for more than three months bul less than one year have been disclosed as short-term deposits. The non-charitable trading funds represent the retained profit arising on the charity's trading subsidiary. Financial instruments Apart from fixed asset investments held al fair value, the charity only has financial assets and financial liabilities of a kind that quality as basic linancial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured at amorlised cost using the effective interest method. Creditors and provisions Creditors and provisions are recognised when there is an obligation al the balance Sheet dale as a result of a past event. il is probable that a transfer of economic benefit will be required in 5elllement, and the amount of the selllemenl can be eslimaled reliably. Creditors and provisions are recognised al the amount the charity anticipates it will pay to sellle the debt. They have been discounted to the present value of the future cash payment where such discounting 15 material. Pension costs All members of staff and clergy are eligible to belong to a defined benefits pension scheme administered by the Church of England Pensions Board. The charity is unable to identify ils share of the undertying assets and liabilities of the schemes on a reasonable and consistent basis. Therefore in accordance with FRS102, il has accounted for its normal contributions as if the schemes were defined contribution schemes. Normal onlributions are charged to the statement of fi'nancial activities when payable. The present value of the expected deficit recovery contributions are recognised as a liability at the balancè sheet dale. The amount is reviewed annually taking into account any changes lo the deficit contribution rate or the implicit rale of interest used in discounting the liability. Fund structure The unreslricled funds comprise those monies which may be used towards meeting the charitable objectives of the charity and may be appl￿d at the discretion of the members of the Board. Certain unreslri¢led funds have been set aside and designated for specific purposes by the Board. The reslricled funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions. The Sl Albans Diocesan Board of Finance 47 Principal accounting policles 31 De￿mber 2022 Custodlan funds Funds held by the charity on behalf of parishes, church schools and other entities and over which the charity has no power lo make management decisions are classified as cust(￿laN funds and are not included in the financial slalemenls. Instead, the funds held are disclosed by way of a note to the financial statements. The Sl Albans Diocesan Board of Finance 48 Notes to the financial statements 31 De￿rnber 2022 1 Income from donations and legacies Restrieted Unrestricted funds funds £'ooo £'ooo Total 2022 £'ooo Parish ShaTe Specific p8rochial donations Geneial donations and legacies 2022 total funds 13,197 13,197 193 193 28 13.230 221 13,423 ResfriGted Unrestricted funds funds £000 £'ooo Total 2021 £'ooo Pansh Share Specific parochNal donations G8n8ral don8tions and legacies 2027 total funds 12,973 10 40 13,023 12.973 fo 97 13,080 57 57 In addition to the above, the Diocesan Board of Finance received as trustees contributions of £383k {2021- £604k) from the governors of Church schools in the Diocese in connection with major repair and capital projects (see note 3 below). 2 Income from investments Un- Endowment Restricted restrlcted funds funds funds £'ooo £'ooo £'ooo Total 2022 £'ooo InGome from listed investments and interest recelvable Glebe income Income ftom miscellaneous rents and lellings 2022 total funds 989 450 290 144 1.423 450 419 2,292 21 311 398 542 1,439 Un- reslricled funds Reslncled funds £'ooo Total 2021 £'ooo Income from listedinvoslmenls and inleresl ￿CeIVable Glebe income Income from misc811aneous rènts 8nd lettings 2021 lolal funds 294 1.008 465 127 1,594 1,302 465 145 1,912 24 318 The Sl Albans Diocesan Board of Finance 49 Notes to the financial statements 31 December 2022 3 Incorne from charitable activities Restricted restricted funds funds £'ooo £'ooo Total 2022 £'ooo Grants receivable Fees and chaplaincy incorne Schools, Service Level Agreements and Project levies Grant funding for Schools Building Projects Other income from courses and confergnces Grant from Church Commissioners. Strategic Development Fund National Church allocallons 287 222 485 S09 485 82 2,257 33 3q6 82 2,257 33 316 457 457 2022 total funds 3,432 707 4,139 Reslricf8d rurpds 000 Unr8slrict6d lunds Tot81 2021 £000 Grants receivable Fees 8nd ehapleincy income Schools, Service Level Agreements and PmjeGI levies Grant funding forSGhools Building Projects Olherincome fmm CoU￿&S wnferenc8S Grent from ChU￿h Commissionets, Strategic D8velopm8nt Fund N8tional chU￿h allocalions 431 258 671 689 671 81 2,286 35 250 481 4,493 81 2,286 55 250 481 3,564 2021 lotal funds 929 Grants receivable for the year which exceeded £100,000 from a single organisation were as follows.. 2022 £'ooo 2021 £'ooo Benefact Trust City Churches Fund (Trust for Londonl Church Commissioners, Strategic Development Fund 126 178 165 286 285 250 The Sl Albans Diocesan Board of Finance 50 Notes to the financial statements 31 De￿mber 2022 4 Income from other sources In 2022, the Diocese sold Ihrep parsonage houses for a surplus of £1,072k (2021 one house sale £383k}. 5 Expenditure on raising funds Non- charltable tradlng funds £'ooo Endowment Restricted Unrestricted funds funds funds £'ooo £'ooo £'ooo Total 2022 £'ooo Schools. Service Lévèl Agreernenls Schools, Gourses Schotsl Capital Projects Investment management costs Trading expenditure (note 261 Glebe expenditure 2022 total funds 61 39 25 45 61 39 25 228 1,669 156 2,178 132 51 1,669 156 288 170 51 1,669 Non- Gharitable Irading funds Endowment Resthcted Unrestricted funds funds funds £'ooo £'ooo £'ooo 2021 £000 Schools, Service LevelAgTrgm8nls Schools, Courses School C8Plt&l PmJ&cls IR3veslment management costs TKading Fxp8ndfflur8 (nole 26J G19be 8xpenditur8 2027 Itital funds 63 25 14 45 63 25 173 221 3,224 717 5,664 3,224 117 290 147 3,224 The St Albans Diocesan Board of Finance 51 Notes to the financial statements 31 December 2022 6 Expenditure on the promotion of the work of the Church of England in the Diocese of St Albans Year ended 31 December 2022 Restricted Unrestricted Total lunds funds 2022 £'ooo £'ooo £'ooo Year ended 31 De¢etnbei 2021 Restricted Unrestricled Total funds funds 2021 £'ooo £'O(K) £'ooo Parochial clergy stipends and related costs Stipends Pension contributions Natitsnal insurance Rernoval and resettlernenl Olher clergy costs 6,198 1.814 563 328 324 6,198 1,814 563 328 324 6.313 1,865 544 337 263 9,322 6.313 1,865 544 337 263 9,227 9,227 9,322 Clergy housing costs Parsonages (direct expenditure) Allocation of support costs Sub-l0181 Board of Finance properties (direct expendilurel 2,639 487 3,126 2,639 487 2,359 483 2.842 2,359 483 3,126 2,842 220 220 191 3,033 191 3,033 3.346 3,346 Ministry Direol exp8ndilure" . Allocation of support costs 392 1,199 554 1,753 1,591 554 2,145 351 1,045 549 1.5g4 1,396 549 1,945 392 351 Education Schools Condition Allo￿tIon grants Inole 231 Direct expenditure . Allocation of support costs 2,388 351 2,388 343 319 3,050 2.038 363 2,038 338 318 Bl 319 311 {251 316 2,739 2,401 291 2,692 Mission Direct expenditure". Allocation of support cost 53 720 773 319 1,092 46 710 316 756 316 1.072 319 1.039 53 46 1.026 Grants payable Inote 71 389 637 182 422 604 Total funds 3,573 15,924 19,497 2,980 15,688 18.668 This figure includes the costs of supporting ordinands in training amounting to £792k (2021 £696k). ** Unrestricted fund expenditure in respect to mission includes £285k {2021 £250k} that has been funded by the Strategic Development Funding receivable from the Church Commissioners. Such funding has been credited to restricted funds. A transfer from restricted funds to unrestricted funds has been made al 31 DeGember 2022 and 2021 to reflect Ihe ulilisation of the monies for the purposes intended (note 211. The St Albans Diocesan Board of Finance 52 Notes to the financial statements 31 December 2022 7 Grants payable The Diocese makes grants to institutions in accordan￿ with its grant making policy set out in the members, report. A detailed list of those institutions receiving grants may be obtained on request from the Diocesan Secretary. Year ended 31 December 2022 Year ended 31 December 2021 Restrlcted Unrestricted Tot81 Reslri¢ted Unrestricted Total funds funds 2022 funds funds 2021 £'ooo £'ooo £'ooo £'ooo £'ooo £'o Church Schools other grants to SCh￿IS 13 13 Parishes To assist wlh repairs or rebuikling costs Pastoral Aid Support Giants to assBt in meeting Parish Share contributions 241 241 92 92 123 115 123 133 222 101 222 106 18 External charltles For humanilarkgn relrel missbn and evangelism 27 64 Clergy and clergy wldows Ordinands, support Discretionary grants foi the relief of finanthal hardsh￿) 60 60 58 58 43 10 63 42 49 Total funds 389 248 637 182 422 Support costs Unrestricted funds Total Total 2022 2021 £'ooo £'ooo Support staff costs Support office costs Governance costs General Synod Requirement 767 330 183 399 1,679 789 213 214 448 1,664 Reallocated to charitable activities as follows.. Clergy housing Ministy Education Mission 487 554 319 319 1,679 483 549 316 316 1,664 The Sl Albans Diocesan Board of Finance 53 Notes to the financial statements 31 December 2022 9 Net income {expenditure) before investment gains and losses This is staled after charging.. Total 2022 £'ooo Total 2021 £'ooo Staff costs Inole 101 Auditor's remuneration.. Slalulory audit services Depreciation 2,427 2,418 26 66 24 68 10 Staff costs and employees Total 2022 £'ooo Total 2021 £'ooo Staff costs during the year were as follows.. Wages and salaries Social security costs Other pension costs 1,827 187 413 1,775 178 465 2,427 2,418 Total 2022 £'ooo Total 2021 £'ooo Staff costs per function were as follows.. Direct promotion of the work of the Church of England in the Diocese of St Albans Other 5UPPOrt staff 1.744 683 1,692 726 2,418 2,427 The average number of employees and office holders, analysed by function, was.. 2022 Full.time 2022 Part-time 2021 Full-lime 2021 Part-time Direct promotion of the work of the Church of England in the Diocese of Sl Albans 21 10 31 22 21 13 34 22 Other support staff 27 26 The 27 (2021- 26} part-time posts are equivalent to 17 full-time posts (2021 151. The St Albans Diocesan Board of Finan￿ 54 Notes to the financial statements 31 December 2022 10 Staff costs and employees (continued) The number of employees who earned over £60,000 {excluding employerfs pension Gontribulions) during the year was as follows.. 2022 2021 £60,001 - £70,ODO £70,001- £80,000 Employer contributions are also paid into a pension scheme in respect of the employees who earned over £60,000. Key management personnel remuneration (including employer's pension and nation81 insurance conlribulionsj lolalled £709k in the year to 31 December 202212021 £552kl including stipends and related employer's pension and national insurance contributions in respect to Board members of £298k (2021- £199k). 11 Board members, remuneration During the year no member of the Board had any beneficial interest in any contract with the group or the charity {2021 none). During the year several members of the Board, who are also clergy within the Diocese, re￿iVed stipends from the charity in connection with their religious and pastoral duties within the Diocese. These stipends lotalled £226k {2021 £186k) including pension contributions of £72k {2021 - £48k} to the Clergy scheme and other employer costs. However, no member of the Board received any remuneration in connection wilh their duties as members of the Board during the year12021- none). No travel expenses were incurred in the performan￿ of their duties as Board members {2021 none). Seven clergy members benefited from clergy housing provided by the Board (2021-four members). The Board's Insuran￿ policy includes cover for Trustee Indemnity. 12 Taxation The St Albans Diocesan Board of Finance is a registered charily and therefore is not liable to income lax or corporation tax on income derived from its charitable activities, as il falls within the various exemptions available lo registered charities. The charity's subsidiary company pays corporation tax on its taxable profits If sufficient funds are available, the subsidiary company may make a charitable donation to ils parent charity which will reduGe the corporation tax payable. The St Albans Diocesan Board of Finance 55 Notes to the financial statements 31 December 2022 13 Tangible fixed assets Other freehold land and Office buildings equipment £'ooo £'ooo Parsonage houses Total £'ooo Group and Charity 2022 Cost or deemed cost Al 1 January 2022 Additions Disposals Al 31 De￿mber 2022 £'ooo 76,627 24 18561 75,795 13.958 515 244 106 1163} 187 90.829 645 11.019) 90,455 14,473 Depreclatlon At 1 January 2022 Charge for year Disposals Al 31 December 2022 338 22 180 44 11641 60 518 66 11641 420 360 Net book values Al 31 December 2022 A 31 December 2021 75,795 76,627 14.113 13,620 127 64 90,035 90.311 Parsonage houses and corporate residential properties owned as al 31 December 2013 have been included in tangible fixed assets at a valuation al that dale. The valuation attributable to each house as at that date is that deemed by members of the Board of Finance to have approximated to the value calculated on the basis of existing use. In calculating this valuation, reference was made to insurance value, as determined by Rumball Sedgwick, Chartered Surveyors, as part of their quinquennial review. The historical cost of the parsonage houses is nol known as many of these assets have been given or transferred to the Diocese Over a period of many years. These valuations are now regarded as the deemed cost of the properties under the transitional provisions of FRS102. Parsonage houses and corporate residential properties acquired since 1 January 2014 have been included within tangible fixed assets al their cost. The book value of other freehold land and buildings 15 based on cost, or where cost is not available, al a members, valuation rnade in prior accounting periods. Other fixed assets are slated at cost. The Board has opted to adopt a policy of not revaluing its tangible fixed assets as permitted on the implementation of FRS102. 11 is likely thal the open market values of the group's and the charity's other freehold land and buildings are materially greater than their book values. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of members, is not justified in terms of the benefil to the users of the financial statements. Four of the freehold buildings, costing £1,783k were bought using money from Glebe receipts and so are part of the Glebe fund. If they are sold in the future, the proceeds will be retained within the Glebe Fund. In accordance with FRS102, to the extent that property is financed by Church Commissioners, equity loans for sector ministry, it is excluded trom both tangible fixed assets and the related creditors in the balance sheet. The Sl Albans Diocesan Board of Finance 56 Notes to the financial statements 31 December 2022 14 Investments En- domnent Restricted fund5 funds £'ooo £'ooo Un- restricted funds £'ooo Total 2022 £'ooo Total 2021 £'ooo Group Glebe property Listed invsslmenls and cash 30,922 38.43Y 69.3S9 30.922 56.722 87.644 28,783 56,843 85,62e 12,042 12,042 6.243 6.243 En- dowment R&slricled funds funds £000 Un- slricled runds £'ooo Tot81 2021 £'ooo Group Gleb2 pFDperty Listed Nnvestmenls and cash 28, 783 37,286 66,069 28, 783 56,843 85, 626 12,941 12,941 6,616 6.616 En- dowment Restricted funds funds £'ooo £'ooo Un- restricted funds £'ooo Total 2022 £'ooo Total 2021 £'ooo Charity Glebe property Listed investments and cash Inve51menl in subsidiary undertaking 30,922 38.437 7,700 77.059 30,922 56,722 7,700 95.344 28,783 56,843 1,700 87,326 12,042 6,243 12,042 6,243 dowm8nl ReslriGled funds funds £'ooo £000 reslriGlod funtls £'ooo Total 2021 Ch&rily Glebe pmperty Listed inveslmenls and cash Investment subsidffary uftdertaking 28, 783 37,286 1,700 67,769 28, 783 56,843 1.700 87,326 12,941 6.616 12,947 6,616 Movements in the group's and charity's investments during 2022, excluding those in subsidiary companies, were a5 follows. Glebe Llsted property Investments £'ooo £'ooo Total £'ooo MaTket value al 1 January 2022 Additions al cost Disposals al book value {proceeds.' £3,944k', nel gains.. £707kl Nel LJnr&alised investment gains (losses) Market value al 31 December 2022 Cash awaiting Investment 28,783 18 11501 2,271 30,922 55,910 8,051 13,0871 14,8221 56,052 670 56,722 84,693 8,069 13.2371 12,5511 86,974 670 87,644 30,922 The cost at 31 December 2022 of listed investments was £49,481 k {2021- £43,192k). The St Albans Diocesan Board of Finance 57 Notes to the financial statements 31 December 2022 14 Investments Icontinuedl Glebe property Glebe property is included in the financial statements at a valuation based on rental yield. The valuation has been calculated by the Board based on information provided by the charity's managing land agents. The historical cost of the Glebe properties is not known. Many of the properties have been owned for a significant number of years and, in many cases, the properties were given or transferred lo the Diocese for no consideration. Glebe property held at 31 December 2022 comprised the following= Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Agricultural land Residential property 25,450 5,472 30,922 23,354 5,429 28,783 25,450 5.472 30.922 23,354 5.429 28,783 Part of Glebe agricultural land, valued in the accounts at £30k at the year end 31 December 2021, was sold for £1.1m on 4 January 2022. Listed investments Listed investments comprise units in funds held by Schroder and Company Limited, by the Central Board of Finance of the Church of England (CBFI which are professionally managed on behalf of the CBF by CCLA Investment Management Lirniled, together with a holding in M&G Charifund, a common investment fund managed by M&G Securities Limited. At 31 December 2022, the investment portfolio for both the group and chartty included the following holdings which represented a material proportion of the total value of the fixed asset investment portfolio at that date.. 2022 Percentage of portfolio 2021 Percentage of portfolio Market value Market value £'ooo £'ooo CCLA CBF Investment Fund- Income units Schroeder Global Sustainable Growth Schroeder Fidelity Global Dividend Fund Schroeder Vanguard S&P 500 UCITS ETF 39.2 21,956 4,152 3,443 3.009 19,428 4,106 3,522 3,353 All listed investments are held within the United Kingdom. The Sl Albans Diocesan Board of Finance 58 Notes to the financial statements 31 December 2022 14 Investments {continuedl Investment in subsidlary company During 2014, the charity established a wholly owned subsidiary company, St Albans Diocesan Property Company Limited, investing £1.7 million in the purchase of the subsidiary company's called up share capital of 1,700,000 ordinary shares. During 2022, a £6 million loan from the charity to ils subsidiary company was Converted to equity shares, bringing the tolal holding to 7,700,000 ordinary shares. Further details of the subsidiary and ils trading results for the year to 31 December 2022 and financial position as at that dale are given in note 26 lo these financial statements. 15 Application of total return accounting to Investments The investment power of total return permits the St Albans Diocesan Board of Finance to invest across all permanent endowment investments to maximise total return and apply an appropriate portion of the unapplied total return each year. These are the endowment funds for Diocesan Stipends, Glebe and Parsonage Benefice Funds. Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains part of the individual fund. 3.50/0 of the value of investments, i.e. £2,262k in lolal, was transferred to general funds such that it is set against the cost of stipendiary ministry in the year, as determined by the Diocesan Stipends Fund {Amendment) Measure 2016. From 1 January 2022 the St Albans Diocesan Board of Finance adopted a total return approach lo investments with regard to the above investment portfolios. The Board adopted and agreed a base- line asset value al 31 December 2017, indexed using CPI, and a distribution policy of 3.50/9 based on a five year rolling average of capital values, to be reviewed every three years. The initial value for implementing total return for investment was determined at 31 December 2017 as £57,238k. This was the amount held in permanent endowment investments and cash deposits at that date. The unapplied tolal return was calculated as at the 1 January 2022 and valued at £18,811 k as the increase above inflation in the value of these investments since the initial valuation, subsequent to the application of CPI and adjusted for amounts invested in curates, houses. The movements during the year in the value of the unapplied total return are set out in the following table.. The Sl Albans Diocesan Board of Finance 59 Notes to the financial statements 31 December 2022 15 Application of total return accounting to Glebe Investments {continued) Trust for Unapplied investment total return £'ooo £'ooo Total £'ooo Al 1 January 2022 Base value of the permanent endowment Unapplied lolal relum Total 61,255 61,255 18,811 80.066 18,811 18.811 61,255 Movements during the year.. Investment returns.. dividends received Investment return.. realised and unrealised losses Investment management fees Glebe property expenses Unapplied lolal relurll allocated lo income in the year Transfer lo Glebe Fund". Curates Houses Gharilable donation from property company Add indexation of base level of endowment Net movements in the year 1,647 12111 11321 {1561 12.2621 1,647 12111 11321 1166} 12,2621 14711 510 1471} 510 16,3901 {6,9941 6.390 5.919 {1,0751 As at 31 D&¢ember 2022 Base value of the permanent endowment Unapplied lolal rfylurn Valuation as at 31 December 2022 67,174 67,174 11,817 78,991 11,817 11,817 87,174 16 Stock: land under development 2022 £'ooo 2021 £'ooo Group Al 1 January 2022 Development costs Borrowing costs Disposals At 31 December 2022 11,535 2,091 20 11,5681 12.078 11,787 2.619 54 {2,9251 11,535 Land under development relates to a parcel of land that is being developed by the charity's wholly own8d trading subsidiary, Sl Albans Diocesan Property Company Limited. On 20 December 2017 Sl Albans Diocesan Property Company Limited signed a Collaboration and Equalisalion Agreement wilh the owners and co-developers ofadjacent land to its own near Houghton Regis. This agreement is pursuant to an existing Collaboration and Equalisation Agreement in pla￿ l Heads of Agreement") with the same owners. The new agreement sets out detailed terms and conditions of the financial and operational obligations of each member to the Houghlon Regis Consortium which will manage the development and sales of land owned by each member of Ihe Consortium. During the seven years lo 31 December 2022, professional. feasibility and borrowing costs have been incurred and have been treated as additions to the value of the land under development. The first major sale of land was made in February 2019 with further sales in 2020, 2021 and 2022. The profits on these sales have been included in the group financial slatements in the year appropriate to the transactions. The St Albans Diocesan Board of Finance 60 Notes to the financial statements 31 December 2022 17 Debtors Group 2022 £'ooo Charlty 2022 £'ooo 2021 £'ooo 2021 £'ooo Due within one year Amounts due from Parochi81 Church Councils Building loans Parochial contributions Inole {al below) 177 q80 142 146 177 180 142 146 Church Commissioners - Pastoral Account Inole Ibl below) Investment income receivable Staff loans Loan lo subsidiary company Inole 261 Due from subsidiary company Inole Icl belowl Amount due in respect to sale of land Sundry debtors and prepayments 75 75 94 6,000 1,226 1,432 2,743 650 3,654 2,432 668 3,344 650 2,343 8,736 Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Due aftèr one year Amounts due from Parochial Church Councils.. Building loans Equity108ns to finance the purchase of cuffttes, houses (note Idl below} Other loans 60 155 60 155 211 12 283 300 211 12 283 300 464 464 Notes {al The debtor for parochial contributions represents monies in respect of parish share for 2022 received subsequent to the year-end but prior to 13 January 2023 (2021 17 January 2022). Ib) Amount due from the Church Commissioners represents proceeds from the sale of a redundant church. (cl In 2021 and 2022, the amoLint due from the subsidiary company includes accrued interest on the loan to the company {note 26). (d) Equity loans enable Parochial Church Councils to purchase curates, houses. They are repayable only on the future disposal of the relevant property. The St Albans Diocesan Board of Finance 61 Notes to the financial statements 31 December 2022 18 Creditors: amounts falling due within one year Group 2022 £'ooo Charlty 2022 £'ooo 2021 £'ooo 2021 £'ooo Church Sch(x)I building5 and maintenance Grants commilled Corporation lax payable Sundry creditors and accruals 241 926 241 926 199 635 1,079 343 678 1,950 627 872 671 1,600 Church schools buildings and Maintenan￿ represents receipts held and allocated to a projeGI but not yet spent. 19 Creditors: amounts falling due after more than one year Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Amounts due lo the Central Board of Finance in respect of parish property loans Amounts due lo the Church Commissioners Variable deposit rate and equity loans for the purch8se of curates, houses Amount due lo consortium development partners Other Creditors 325 229 401 228 90 325 401 90 557 722 328 494 The Church Commissioners, loans have no fixed date of repayment. The equity loans bore interest al between 7.19U/o and 8.20kn during the year. 20 Provlslons for Ilablllties 2022 £'ooo 2021 £'ooo Group and Charity Clergy pension Scheme deficit contribution liability (see note 311 421 The Sl Albans Diocesan Board of Finance 62 Notes to the financial statements 31 December 2022 21 Other transfers between funds The inlpr-fund transfers during the year were as follows.. Non- charltable tradlng funds £'ooo Enflowmenl Restricted Common other funds fund5 luiid unrestrScled £'ooo £'ooo £'ooo £'ooo Group and charity Nel release of De5unaled Funds Nel reduction In Clergy pension scheme defKil GraTrls from Church Commissioners, Strategic Development Fund Iransferied to meet mission experKJilure Transfers from operational reseNes lo cover 2021 dèficit Transfer of SADPC Interest to dÈsignaled Cornffion fund Iransferto School work Transf&r of Curate Houses to Glebe Tr8nsfer of interest payable on ban lo subsldlary company Charflable donallon from subsidiary Gompany to P8renl charily 124 12471 11241 247 12851 2B5 413 14131 119 10 1.782 208 510 2,747 11,7621 12081 15101 12751 446 12,2001 The inler-fund transfers during the previous year were as follows.. Endowmenl RÈslri¢ted Comrnon lunds fur lund £000 £000 £000 Other ¢h&iilablg unr8sfricteO trading funds £000 Group and¢harlty Ival rèducIion in Clèjyypgnsion Sch9n￿ del￿1 PrDw$￿ lorpen&on sch8m8 d6[￿11 trnpa&l (laywortfers sch8m8} Nef movefftenl on p&rsonag8 ben81ic8 y88r GranEs fm ChurGh CoffFJmissioners' SlrsfegK D8￿10pMen￿Fttn￿ Iranslelled lo njeel ryJis5ion exp&ndilur8 Tr8nsf&rs fn)m op&Trtlon8lreseKves to cover 2020 del￿11 Transferof SADPC inler&sl to d8sign&l8dlund Common fund ITSll5fyrto Schoolwork Resllocalion olP&rsonsg& Hous& improv8m￿t$ Transferof granls paldfrom CCFS lund Transf6rolincom8 to Gl8b& Endowmènl from ￿n￿SIn¢la￿ Tr8nsf&rolinlÈreslpayablp on loan lo subsidi&rycomp8ny Charilabl& don8tion Irom SUbs￿l8ry comp8ny toparenl chaiily 427 (427} (7101 (81 iio 1250) 250 500 (262) iioi (461 164 (500) 262 io 46 (164) li 477 1417) (2,402) 12.819) 2,402 2,837 (3931 457 (82) The St Albans Diocesan Board of Finance 63 Notes to the financial statements 31 December 2022 22 Endowment funds The capital funds of the group and the charity are endowed assets which normally must be held as capital but, where permitted, may be applied towards meeting ￿rtain charitable aims. At1 Galns, January Income and losses and 2022 Expendlture transfers £'ooo £'ooo £'ooo At31 December 2022 £'ooo Group and charlty Endowment funds Stipends Capital Fund Pension reserve 25,394 14211 24,973 75,845 2.334 53,756 156,908 574 {2,278} 421 23.690 574 11.8571 23.690 76,917 2,076 56,896 159,579 Parsonage Houses Fund Parsonage Benelice Fund Glebe Fund 1,072 36 541 2.223 (294) 2,599 448 Ati January Income and 2021 Expenditure £'ooo £'ooo Gains. losses and transfers £'ooo A13f December 2021 £'ooo Group and charity Endowment funds Stipends Capital Fund Pension reserye 22,940 (859) 22,081 75,474 2,045 48,204 147, 804 2,454 438 2, 892 (12) 292 5,552 8, 724 25,394 (421) 24.973 75,845 2,334 53, 756 156,908 Parsonage Hous8s Fund Parsonege Benefice Fund Glebe Fund 383 380 The endowment funds were established as follows.. + Parsonage Houses Fund and Parsonage Beneflce Fund The Parsonage Houses Fund represents the net book value of properties used as parsonage houses less the value of temporary finance from the Stipends Capital Fund for the replacement of parsonage houses where the sale of existing houses is pending. The Parsonage Benefice Fund represents nel proceeds from disposals of parsonage houses or parsonage land which are not the subject of a Pastoral Reorganisation. Underlhe Parsonage Measure 1938 (as amended by the Church Property Measure 2018), these funds are required lo be held by the Board on behalf of the benefice concerned. The first call on these funds is to make improvements to the current parsonage house. Once these requirements are met, the remaining funds can be transferred lo the DI0￿$an Stipends or Diocesan Pastoral Account after serving due notice on the Parochial Church Council and Palron. The Sl Albans Diocesan Board of Finance 64 Notes to the financial statements 31 December 2022 22 Endowment funds {continued} Parsonage Houses Fund and Parsonage Benefice Fund (continued) The parsonage house belongs lo the benefice {not to the Parochial Church Council nor the DBF} and the ownership is vested in the 'incumbent for the time being" During a period Df vacancy in the benefice, the Diocesan Bishop has powers to sell in accordance with the provisions of the Church Property Measure 2018. The statutory provisions relating to repairs to parsonage houses are contained in the Repair of Benefice Buildings Measure 1972. The Measure puls a slatulory obligation upon the Diocesan Parsonage Board (or DBF Property Committee) lo repair and insure benefice houses, thereby relieving the incumbent of this responsibility. • Glebe Fund The Glebe Fund represents the value of the Glebe Property plus nel current assets of £4,980k (2020- £14,650kl. The use of the fund is restricted under the Endowmenls and Glebe Measure 1976, which transferred ownership of all Glebe land and property from the benefice lo the Diocesan Board of Finance to be held by the Board exclusively for the benefit of the Diocesan Stipends Fund (see below). All income and expenditure derived from this fund is included within the Glebe Fund. Transfers lo the Common Fund are made following the adoption ofa tola5 return policy. Stipends Capital Fund This fund represents net proceeds from the disposal of Glebe land subsequently invesled lo be held as part of the Stipends Capital Fund. Income from the fund must be applied towards the payment of stipends. The provision for the Clergy pension scheme deficit recovery payments forms part of this fund. The fund balance is represented by listed investments, cash on deposit and loans to provide temporary finance to Ihe Parsanage Houses Fund for the replacement of parsonage houses where the sale of existing houses in pending, less the provision for the deficit in the Clergy pension scheme. The Sl Albans Diocesan Board of Finance 65 ## **Notes to the financial statements** 31 December 2022 ## **23 Restricted funds** The income funds of the group and the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes: |**Group and charity**|**At 1**
**January**
**2022**
**£’000**|**Income**
**£’000**|**Expenditure**
**£’000**|**Gains,**
**losses and**
**transfers**
**£’000**|**At 31**
**December**
**2022**
**£’000**| |---|---|---|---|---|---| |Consolidated Fund for Statutory
Education
Church Commissioners’ Strategic
Development Fund
Committee for Social Responsibility
funds
Creed Fund
Trust for London (CCFS)
Bishop’s Harvest Appeal
Church Repairs Fund
Ukraine Appeal
Parker Fund
Archdeacons’ Discretionary
Yapp Fund
Historic Buildings Fund
Ordinands’ Training Fund
Grimthorpe Fund
Other restricted funds|**9,994**
**—**
**770**
**109**
**805**
**13**
**411**
**—**
**787**
**610**
**842**
**(100)**
**309**
**240**
**539**|**2,688**
**316**
**20**
**3**
**169**
**41**
**11**
**32**
**—**
**133**
**20**
**23**
**457**
**7**
**16**|**(2,909)**
**(31)**
**(2)**
**—**
**(198)**
**(13)**
**(69)**
**(14)**
**—**
**(27)**
**—**
**(21)**
**(392)**
**(4)**
**(63)**|**(700)**
**(285)**
**(61)**
**(10)**
**1**
**2**
**(45)**
**—**
**(92)**
**(65)**
**(88)**
**(1)**
**(122)**
**(23)**
**42**|**9,073**
**—**
**727**
**102**
**777**
**43**
**308**
**18**
**695**
**651**
**774**
**(99)**
**252**
**220**
**534**| ||**15,329**|**3,936**|**(3,743)**|**(1,447)**|**14,075**| The St Albans Diocesan Board of Finance **66** Notes to the financial statements 31 December 2022 23 Restricted funds (continued) All January 2021 £'ooo Gains, losses and transfers £'ooo At31 December 2021 £'ooo Income Expenditure £000 £'ooo Group and charity Consolidated Fund for Stèlufrory Education Church Commissioners. Strategic Development Fund Committee for Social Responsibility funds Cr68d Fund Tmsfr forLondon (CCFS) 8ishop's H&NestAppeal ChurGh Repairs Fund Parker Fund Archdeacons. Discretionary Yapp Fund Historic Buildings Fund Ordinands, Training Fund Grimt170rpe Fund oth8r reslrict8d funds 8, 789 2, 728 (2,561) 1,038 9.994 250 {250) 670 96 675 22 355 698 529 729 (74) 180 212 5f8 13,399 18 (5) 87 11 (164) 770 109 805 13 411 787 670 842 fl00) 309 240 539 15.329 294 55 fo 20 22 19 18 481 (64) 46 90 76 94 (21) (17) (44J (352) 26 64 1,118 16 3,939 (59) (3, 127) The Consolidated Fund for Statutory Education is legally restricted by Ihe trusts sel out in Section 17 of the Education Act 1993. Its uses include.. {1} Purchase, erection, maintenance and improvemenl of any school or teacher's house in the relevant area., (li) Provision of advice, guidance and reSoUr￿S for the management of schools in the area- (iii} Inspection of relevant schools in the area. The Sl Albans DI0￿s￿n Board of Finance 67 Notes to the financial statements 31 December 2022 23 RestriGted funds (continued) Movements on the Consolidated Fund for Statutory Education during the year can be summarised as follows.. 2022 £'ooo 2021 £'ooo Group and Charity Income Investment income Grants received Rental income from school properties Service Level Agreement income School Courses Grant funding from SCA School Building Projects levy Total income 196 100 26 79 192 110 24 81 35 2,246 40 30 2,208 49 2.688 2.728 Expenditure Education 12,909) {2,561) Net lexpendlturelllncome before investment gains and transfers Investment gains {losses) and tronsfers Net lexpenditurellincome 1221} 1700} 19211 167 1,038 1,205 The fund is represented by the following net assets.. 2022 £'ooo 2021 £'ooo Investments Debtors SCA Funds held for future use Short term deposits Creditors.. amoLJnls falling due within one year Inter fund balances Total net assets 8,563 66 9,000 73 53 238 19731 1,603 9,994 77 11481 515 9,073 The SCA (Schools Condition Allocalionl system, which commenced in April 2020 requires the charity to reflect grants received and spent as income and expenditure within the accounts. The grant funding received is included in the SOFA along with the related expenditure. The unspent balance is included as part of the surplus for the CFSE at the year-end. The grants received have to be spenl within two years of receipt or returned to the DfE. The cycle is longer than our accounting period, so the transactions in a year will show as a surplus or deficit according lo the timings of all Ihe individual projects. This means that across several yeais, the position will be break-even, whilst any individual year will show a surplus or deficit depending on the phasing of the projects. The St Albans Diocesan Board of Finance 68 Notes to the financial statements 31 December 2022 23 Restricted fijnds {continued) The specific purposes for which the other reslricled funds are to be applied are as follows.. Fund Applicationlpurpose Church Commissioners Strategic Development Fund Consolidated Fund for Slatulory Education Committee for Social Responsibility Funds Grant funding received from Church Commissioners co-funding the Reaching New People project Application of nel sales proceeds of closed church schools under S￿tIOn 17 of the Education Act 1993. Formerly held under the charity registered number 291355, grants are awarded by the Committee for Soci21 Responsibility, which is a sub**January**
**2022**
**£’000**|**Income**
**£’000**|**Expenditure**
**£’000**|**Gains,**
**losses and**
**transfers**
**£’000**|**At 31**
**December**
**2022**
**£’000**| |---|---|---|---|---|---| |Common Fund
Other unrestricted funds
. Tangible fixed assets fund
. Property ring-fenced fund
. Special Designations
.. Operational Reserve
.. Mission
.. Other
. Pastoral Account
Unrestricted funds
Elimination of Intra group profit
Non-charitable trading|**1,602**|**14,411**|**(15,896)**|**2,708**|**2,825**| ||**13,323**
**6,945**
**2,978**|**—**
**—**
**41**|**—**
**—**
**(80)**|**(1,783)**
**(716)**
**(162)**|**11,540**
**6,229**
**2,777**| ||**1,320**
**390**
**1,268**|**—**
**4**
**37**|**6**
**(72)**
**(14)**|**(252)**
**—**
**90**|**1,074**
**322**
**1,381**| ||**731**|**27**|**(5)**|**—**|**753**| ||**23,977**|**68**|**(85)**||| ||**25,579**
**(168)**|**14,479**
**—**|**(15,981)**
**6**|**47**
**—**|**24,124**
**(162)**| ||**25,411**
**4,986**|**14,479**
**2,926**|**(15,975)**
**(1,771)**|**47**
**(718)**|**23,962**
**5,423**| ||**30,397**|**17,405**|**(17,746)**|**(671)**|**29,385**| ||_At 1_
_January_
_2021_
_£’000_|_Income_
_£’000_|_Expenditure_
_£’000_|_Gains,_
_losses and_
_transfers_
_£’000_|_At 31_
_December_
_2021_
_£’000_| |_Common Fund_
_Other unrestricted funds_
_. Tangible fixed assets fund_
_. Property ring-fenced fund_
_. Special Designations_
_.. Operational Reserve_
_.. Mission_
_.. Other_
_. Pastoral Account_
_Unrestricted funds_
_Elimination of Intra group profit_
_Non-charitable trading_|_1,515_|_15,878_|_(15,840)_|_49_|_1,602_| ||_13,323_
_6,502_
_2,908_|_—_
_—_
_5_|_—_
_—_
_(185)_|_—_
_443_
_250_|_13,323_
_6,945_
_2,978_| ||_1,287_
_450_
_1,171_|_—_
_1_
_4_|_(124)_
_(61)_
_—_|_157_
_—_
_93_|_1,320_
_390_
_1,268_| ||_672_|_80_|_(21)_|_—_|_731_| ||_23,405_|_85_|_(206)_|_693_|_23,977_| ||_24,920_
_(236)_
_5,471_|_15,963_
_(417)_
_5,444_|_(16,046)_
_68_
_(3,110)_|_742_
_417_
_(2,819)_|_25,579_
_(168)_
_4,986_| ||_30,155_|_20,990_|_(19,088)_|_(1,660)_|_30,397_| The St Albans Diocesan Board of Finance **70** Notes to the financial statements 31 December 2022 24 Unrestricted funds Iconlinued) Common Fund reconciliation 2022 2021 £'ooo £'ooo £'ooo £'ooo Total income in year Total expenditure in year (Deficitllsurplus for the year before transfers 14,411 115,896} {1,4851 15,878 115.8401 38 Total Return (see note I 51 Investment income received from Endowment funds in year Additional income due lo adoption of lolal return 1,647 615 2.262 Other adjustments (transfers between funds see note 21 Transfer from designated funds to cover previous year deficit CleTgy and staff pension deficit contribLJtions paid in the year Transfer of interest from subsidiary property company Nel grant transfers Net releases of designated funds 413 1247 11191 275 124 500 15371 {2621 348 49 Net movement on Common Fund 1,223 87 Balance al 1 January 2022 1,602 1.515 Balance at 31 December 2022 2,825 1,602 • Common Fund The Common Fund is used to fund the budget of the St Albans Diocesan Board of Finance as agreed by the Diocesan Synod. Its primary source of income is the amounts collected from Parochial Church Councils via the Parish Shares Scheme. The Common Fund provides the liquidity needed lo operate effectively and the ability lo finance short-term deficits. The aim is for the fund to be represented, in part, by a minimum cash balance sufficient lo meet stipend and lay staff salary payments as they fall due. The need for such working capital is taken into account when selting the annual budget. Excess monies may be distributed to parishes via the budgetary process, but conversely any prior year deficits sustained on the common fund may be recouped via the same process. The policy itself, and the levels of resources required, are reviewed annually. • Tangible Fixed Assets Fund This fund represents those assets held by the Board for carrying out its general activities. Reserves are needed lo provide the St Albans Diocesan Board of Finance with the assets needed lo carry out its objectives including statutory requirements, administration of funds and housing of non-beneficed clergy. • Special Designated Funds These are funds which the Board has set aside for specific sundry purposes falling within the normal activities of the Diocese. The Sl Albans Diocesan Board of FinanGe 71 Notes to the financlal statements 31 December 2022 24 Unrestricted funds (conlinued) • Pastoral Account The Diocesan Pastoral Account is held by the Board for the purposes defined in Sections 93 and 94 of the Mission and Pastoral Measure 2011. Ils uses include.. {1) Expenses incurred relating to the purposes of the measure., (il) Grants and loans for parsonage and church provision, restoration, improvement or repair., (1111 Transfers to the Diocesan Stipends Fund., livl Other purposes as defined in the Measure. 25 Unrealised gains The total unrealised gains as at 31 December 2022 constitutes a revaluation reserve and are as follows.. 2022 £'ooo 2021 £'ooo Unrealised gains on list&d investments at 31 Deeember 2022 6,571 12,718 Reconciliatlon of movements in unrealisod gains Unrealised gains al 1 January 2022 Less.. in respect lo disposals in the year Net Ilossesl gains arising on revaluation arising in the year Total unrealised gains at 31 December 2022 12,718 {392} 15,755> 6,571 7,151 11801 5,747 12,718 26 St Albans Diocesan Property Company Limited On 18 February 2014, St Albans Diocesan Property Company Limited was established as a 1000 owned subsidiary of the St Alb2ns Diocesan Board of Finance. Its current directors are Mr C G Bird, Mr A C Brown, The Ven D Middlebrook, Mr J W Butler and Mr C B Gage who are also members and directors of the Board of Finan￿ and, Mr E M Wood, The Hon H T Holland-Hibbert and Mr J B Watkiss who are independent directors. Sl Albans Diocesan Property Company Limited is part ofa VAT Group registration wilh the Sl Albans Diocesan Board of Finance. On 10 April 2014, the St Albans Diocesan Board of Finance transferred a parcel of ils land with planning potential to St Albans Diocesan Property Company Limited. The land was classified initially as investment land as it was not known whelher satisfactory planning permission for development would be obtained. Such permission was granted in July 2015 at which point the land was reclassified as stock of land under development. The Sl Albans Diocesan Board of Finance 72 Notes to the financial statements 31 December 2022 26 St Albans Diocesan Property Company Limited Icontinuedl The company has signed an agreement with the owners and co-developers of adjacent land lo its own near Houghton Regis and a consortium has been formed to manage the development and sales of land. Since 2019 the consortium has Completed a number of significant sales of land. All sales proceeds and associated Gosls are included in the financial stalemenls of the company and these consolidated financial slatements. Tax has been calculated on the profits and is included in the financial statements. During 2018, the company entered into an agreement for a loan of £7 million from ils parent charity, repayable in two years. In 2019, £1 million of the nel sales proceeds were utilised to repay part of this loan. The loan was due to be repaid in July 2022, and following the year-end, the Sl Albans Diocesan Board of Finance agreed to convert the debt into equity at one share for each pound of debt. A summary of the company's statement of income and retained earnings for the year and balan sheet al 31 December 2022 is given below. Audited accounts will be filed with the Registrar of Companies. The company's registered office is Holywell Lodge, 41 Holywell Hill, St Albans, Herts, AL1 1 HE. 2022 £'ooo 2021 £'ooo Income and expenditure Turnover Cost of sales Operating costs Interest payable Taxation Profit for the year 2,926 11,6181 1511 (2081 11021 947 5,444 13.2001 1241 14171 114 1,917 2022 £'ooo 2021 £'ooo Balance sheet Current assets Creditors.. amounts falling due within one year Creditors.. amounts falling due after one year Total net assets 14.991 {1,6391 1229) 13.123 14,490 17,576} 12281 6,686 2021 £'ooo 2020 £'ooo Capital and reserves Called up share capital Profil and loss account Total shareholder's funds- equlty Interests 7,700 5.423 13,123 1,700 4,986 6,686 The Sl Albans Diocesan Board of Finance 73 Notes to the financial statements 31 De￿mber 2022 27 Custodian funds As at 31 December 2022 the St Albans Diocesan Board of Finance held funds on behalfof parishes, church schools and general trust funds within the Diocese with a market value of approximately £36.2m (2021 £42.7m) as Custodian Trustee. As explained under principal accounting policies, these assets are not included in these financial statements. The funds are held predominantly as units in common investment funds held by the Central Board of Finance (CBF) of the Church of England and are professionally managed on behalf of the CBF by CCLA Investmenl Management Limited. Al all times, funds held by the charity as Custodian Trustee are segregated clearly from those belonging lo the charity itself. 28 Liability of company members The charity is constituted as a company limited by guarantee. In the event of the charity being wound up, company members are required to contribute an amount not exceeding £1. 29 Related party transactions Hockerill Education Foundation- registered charity number 311018 Three12021 Four) members of the Board are Iruslees of the Hockerill Educational Foundation. In 2022 the St Albans Diocesan Board of Finan￿ reGeived educational grants from the Foundation tolalling £1 Ook (2021- £11 Ok) and £130k {2021 £114k) was spent during the year. Eastem Region Ministry Course- registered charity number 1090989 No members 12021 two member) of the Board are trustees of the Eastern Region Ministry Course. In 2022 the St Albans Diocesan Board of Finance made payments to the Ministry Course totalling £154k12021- £139kl, for academic fees for Student Readers. Youthscape- registered charity number 1081754 One Director (2021 none) is a trustee of the Youthscape. In 2022 the St Albans Diocesan Board of Finance made payments lo Youthscape lotalling £24k (2021 none), for grants for work with young people in the Diocese. City Church Fund- registered charity number 205629-2 One Director (2021 one) is a trustee of the City Church Fund. In 2022 the St Albans Diocesan Board of Finance re￿iVed grants from City Church Fund totalling £165k12021- £286kl, for grants for work with young people in the Diocese. Associated committees Details of all associated committees can be found in the Diocesan Directory available at the registered office. Donations from Board menpbers No donations were received from Board members in the year12021 none). Other than those transactions stated above there were no other related party transactions during the year12021- none). The St Albans Diocesan Board of Finance 74 Notes to the financial statements 31 December 2022 30 Connected entities The St Albans Diocesan Board of Education (DBE} was a Board of the St Albans Diocesan Synod up until 1 January 2022. The Board worked closely with the Diocesan Board of Finance to seamlessly transition to a new constitutional form following the enaclmenl of the DBE Measure 2021. After Ihe resolution had been passed by Diocesan Synod in October 2021 the Archbishops, Council Certificate was received, confirming the Scheme which prepared the way for the institution of the Diocesan Board of Education as a statutory committee of the Diocesan Board of Finance from January 2022. Key policies were reviewed and a three-year strategic plan approved which will cover the whole of the next triennium. Whilst il has certain functions and responsibilities imposed by statute (the Diocesan Boards of Education Measure 1991 las amended 200611 and reports directly to the Di0￿san Synod, il has no legal personality separate from the DBF. A key function of the DBE is to assist in the promotion of education in the Diocese, SUGh education b&ing consistent with the faith and pracliGe of the Church of England. It promotes or assists also in the promotion of religious education and religious worship in schools in the Diocese. Following the enactment ofThe Academies Act 201 D. the DBE established The Diocese ofStAlbans Educational Trust, a company limited by guarantee (Company Registration No. 08223185 (England and Wales)) to assist Church of England Academy TrLJSts in the Diocese as they seek to provide a high quality education for pupils and students in their schools. This company is a member of each of the Academy Trusts formed in the Diocese since 1 September 2012. Five of the seven directors of the company are appointed from the DBE with two non-DBE appointments. In response to the Education and Adoption Bill 2015, the Diocese of St Albans Multi Academy Trust was incorporated on 27 October 2016 as a company limited by guaiantee (Company Registration No. 104493741. The five members of the Multi Academy Trust are appainted by The Diocese of St Albans Educational Trust. These members are responsible for appointing the seven directors of the Multi Academy Trust who have responsibility for its day to day management. The Multi Academy Trust has been established to provide for schools within the Diocese requiring rapid improvemenl having been placed in Special MeasLJres and subject to a directive Academy Order, good or outstanding schools where no natural cluster of local Church of England provision exists, and new schools within new housing provision where the Diocese is the identified sponsor. During the year, there have continued to be a limited number of transactions between the Multi Academy Trust and the DBF in respect of a recharge of staff salaries by the DBF. The arnounts involved are not material to these financial statements. 31 Pension commitments Lay workers scheme St Albans DBF participates in Ihe Defined Benefits Scheme (DBS} section of the Church Workers Pension Fund (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 Sl Albans Diocesan Board of Finan￿ 75 Notes to the financial ststements 31 December 2022 31 Pension commitments Iconlinued) CWPF has two sections.. 1. the Defined Benefits Scheme 2. the Pension Builder Scheme, which has two subsections,. a deferred annuity section known as Pension Builder Classic, and, a cash balance section known as Pension Builder 2014. Pension Builder Scheme Both sections of the Pension Builder Scheme are classed as defined benefit schemes. Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits al retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced. from age 65. There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are the contributions payable {2022: £11,200, 2021. £10,200). A valuation of Ihe Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as al 31 December 2019. The next valuation is due as at 31 December 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1 % following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumplions used. There is no requirement for deficit payments at the current time. The legal structure of the scheme is such that if another employer fails, SADBF could become responsible for paying a share of the failed employer's pension liabilities. The St Albans Diocesan Board of Finance 76 Notes to the financial statements 31 December 2022 31 Pension commitments {conlinuedl Clergy scheme St Albans DBF participates in Ihe Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately Irom those of the Responsible Bodies. Each participating Responsible Body in the scheme pays contributions al a common conlribution rale applied to pensionable stipends. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS102. It is not possible lo attribute the Scheme's assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year {2022 - £2,189k', 2021 £2,416k), plus the figures highlighted in the table below as being recognised in the SOFA. giving a total charge of £2,363 for 202212021.. £2,426). A valuation ofthe Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 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% p.a.. • RPI inflation of 3.60/0 p.a. {and pension increases consistent with this)., • CPIH inflation in line with RPI less 0.80A pre 2030 moving to RPI with no adjustment from 2030 onwards., • Increase in pensionable stipends in line wilh CPIH- • Mortality in accordance with gOOA of the S3NA tables, with allowance for improvements in mortality rates in line with the CM12020 extended model with a long-lerm annual rate of improvement of 1.50/0, a smoothing parameter of 7. an initial addition to mortality improvements of 0.5% and an allowance for 2020 data of O % {i.e. w2020= 0% ). As at 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the table below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules. of pensionable stipends January 2018 to December 2020 January 2021 to December 2022 Deficit repair contributions 7.10h Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is sel out in the table below. The Sl Albans Diocesan Board of Finance 77 Notes to the financial statements 31 December 2022 31 Pension commitments {¢ontinued} 2022 £'ooo 2021 £'ooo Balance sheet liability at 1 January Deficit contribution paid Inleiesl cost {recognised in SOFA) Remaining change lo the balance sheet liability. Irecognised in SOFA} Balance sheet liability at 31 December 421 1247) 859 {428) 11741 421 Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends. This liabil￿tY represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going fonmard. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan are already known. December 2022 December 2021 December 2020 Discount rate Price inflation Increase to lolal pensionable payroll nla nla nla O.OO/opa nla -1.5Yopa 0.2Vo pa 3.1Qkn pa 1.60/0 pa The legal structure of the scheme is such that if another Responsible Body fails, the charity could become responsible for paying a share of that Responsible Body's pension liabilities. Other schemes No contributions were made to any other pension schemes in the year12021 £3k made to the Teacher's Pension Scheme and the Hertfordshire County Council pension scheme}. The Sl Albans Diocesan Board of Finance 78 Reference and administrative Information Board members Chairman CGBird VI￿ Chairman A Brown OBE Other Members The Bishop of St Albans The Archdeacon of St Albans The Archdeacon of Bedford The Archdeacon of Hertford The Reverend Dr G R Cappleman C Bell The Reverend C E Bunce M E Butcher J W Butler N K Challis D C Clark B Crawford Dr D W Dallinger The Reverend K David P E Easlerbrook Dr M Ealon K Ebbage T Fleming CBGage M J Gates The Reverend Canon C E C Hudson P R Lindley E D Roberts K Smith Dr R L V Southern M P Taylor The Reverend A J Thomas Secretary to the Board D J White Registered office Holywell Lodge 41 Holywell Hill St Albans Hertfordshire AL11HE Telephone 01727 854532 Company registration no. 00145227 {England and Wales) Charity registratSon no. 248887 The St Albans Diocesan Board of Finance 79 Reference and adminlstrative information The governance structure of the charity is more fully discussed on pages 27 to 28. Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers Barclays Bank plc Blenheim Gale 22124 Upper Marlborough Road st Albans Herts BX3 2BB Diocesan Registrar and Solicitors Winckworth Sherwood LLP Minerva House 5 Montague Close London SE1 9BB Legal Advisers Debenhams Otlaway Solicitors Ivy House 107 St Peter's Street St Albans Herts AL13EW Investment managers listed investments Schroder & Company Limited trading as Cazenove Capital Management 12 Moorgate London EC2R 6DA CCLA Investment Management Limited 1 Angel Lane London EC4R 3AB Diocesan Surveyor Rumball Sedgwick Chartered Surveyors, Valuers and Estate Agents 58 St Peter's Street Sl Albans Herts AL13HG Glebe property agents Bidwells Bidwell House Trumpington Road Cambridge CB2 9LD The St Albans Diocesan Board of Finance 80