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2025-12-31-accounts

Annual Report and

Consolidated Financial Statements For the 12-month period ended 31 December 2025

The St Albans Diocesan Board of Finance

The St Albans Diocesan Board of Finance, a company limited by guarantee registered in England and Wales No 145227. Registered Charity No 248887 Registered OŨce: Holywell Lodge, 41 Holywell Hill, St Albans AL1 1HE Switchboard: 01727 854532 Web: www.stalbansdiocese.org/

Contents

Reference and administrative information 3
Chair’s Statement 5
MEMBER’S REPORT 7
Consolidated statement of financial activities Year to 31 December 2025 28
Comparative consolidated statement of financial activities Year to 31 December 2024 as
restated 29
Consolidated balance sheet 31 December 2025 30
Comparative consolidated balance sheet 31 December 2024 as restated 31
Charity balance sheet 31 December 2025 32
Comparative charity balance sheet 31 December 2024 as restated 33
Summary Consolidated income and expenditure account Year to 31 December 2025 34
Consolidated statement of cash flows Year to 31 December 2025 35
Analysis of changes in net debt 36
Principal accounting policies 31 December 2025 37
Notes to the financial statements 31 December 2025 43

2 Annual Report and Consolidated Financial Statements

Reference and administrative information

Board Members Up to 31 December 2025
Chair
Vice Chair
Other Members
Secretary to the Board		 Dr T J Coulson
A Brown OBE
The Rt Revd Dr A G C Smith, Bishop of St Albans (resigned 31 May 2025)
The Venerable C E C Hudson, Archdeacon of St Albans
The Venerable J Mackenzie, Archdeacon of Hertford
The Venerable D J Middlebrook, Archdeacon of Bedford
M E Butcher
N K Challis
Dr D W Dallinger
The Reverend K David
The Reverend A L Davis (Resigned 23 November 2025)
The Reverend Dr S L Forrest
The Reverend T A George
The Reverend J L W Hookway
The Reverend C R H Kilgour
R Lindley
T R N Otley
E D Roberts
E Sivyer
T Snell
Dr L C Spring
J Stewart
The Reverend A J Thomas
D J White

Registered office Holywell Lodge 41 Holywell Hill St Albans Hertfordshire AL1 1HE Telephone 01727 854532 Company registration no. 00145227 (England and Wales) Charity registration no. 248887

The governance structure of the charity is more fully discussed on pages 11 to 12.

Auditor

Saffery LLP 71 Queen Victoria Street London EC4V 4BE

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Bankers Barclays Bank plc
Blenheim Gate
22/24 Upper Marlborough Road
St Albans
Herts
BX3 2BB
Diocesan Registrar and Solicitors Winckworth Sherwood LLP
Minerva House
5 Montague Close
London
SE1 9BB
Legal Advisors Debenhams Ottaway Solicitors
Ivy House
107 St Peter’s Street
St Albans
Herts
AL1 3EW
Investment managers CCLA Investment Management Limited
– listed investments 1 Angel Lane
London
EC4R 3AB
Baillie Gifford & Co
Calton Square
1 Greenside Row
Edinburgh
EH1 3AN
Sarasin & Partners
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU

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Chair’s Statement

These Reports and Financial Statements describe a complex operation at diocesan level but reflect a much larger body of activity and achievement in parishes, schools and chaplaincies. Across Hertfordshire, Bedfordshire, Luton and parts of Barnet these front-line ministries and services would be impossible without the energy, commitment and generosity of so many individuals.

parishes and on behalf of the Board I thank you for that commitment. The parish share recovery rate was 90.84%, against 91.25% in 2024, continuing the very slow reduction since 2022. Given the financial pressures on parishes this remains a very good return. Although there are encouraging signs of small increases in church attendance over the last few years, this has not been seen in all parishes and is often not immediately followed by increased giving. This makes generosity from parishes even more important.

At the time of writing uncertainties and diŨculties in the world are in the minds and prayers of us all. At parish level these present future risks, particularly of financial pressures with inflation set to rise and investment returns potentially falling. The resilience of the diocesan economy may well be further tested in the next few years, but St Albans and its churches are better placed to face such challenges than most other parts of the church.

I would like to comment on three very important developments for our diocese.

Firstly, we have amended our total return investment policy introduced in 2022, to increase our total return distribution from 3.5% to 4.0%. This retains a prudent approach to how diocesan assets can support current activities but results in additional income from our endowed funds supporting the costs of stipendiary clergy. As a result, it has been possible to reduce the parish share request in 2026 by an average of 3.5% - worth more in real terms after factoring in inflation. We hope that this proves a significant financial benefit to our parishes.

Secondly, we acknowledge with thanks the support of our major external funders. The Church Commissioners have provided funding since 2024 to give us capacity to develop an application for a major investment project to support the objective of Growing Younger and More Diverse. The application submitted in 2025 resulted in an award of nearly £2.3 million over 2026-28 to support church growth initiatives in Hatfield, Luton and Watford and activities impacting the whole diocese through The Alban Way programme and supporting local church connection to church schools. We also have agreement in principle to further funding of approximately £2.1 million subject to further applications.

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Thirdly, the Diocese stands at an important time of transition with the announcement in March 2026 that the next Bishop of St Albans will be Bishop Andrew Rumsey. We look forward with great expectation to his ministry and leadership.

I would like to take this opportunity to say thank on your behalf to our Diocesan staff at Holywell Lodge and elsewhere for their vital contribution to the life of the Diocese, with a consistent focus on supporting operations in our parishes.

Dr Tim Coulson Chair of the Board of Trustees Date: 18 May 2026

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MEMBER’S REPORT

INTRODUCTION

The members, as trustees for the purposes of charity legislation, submit their report together with the consolidated financial statements of the St Albans Diocesan Board of Finance (the “Board” or the “Charity”) for the year ended 31 December 2025. The report has been prepared in accordance with the requirements of the Charities Act 2011 and constitutes a directors’ report including strategic report for the purposes of company legislation.

on pages 37 to 42 of the attached financial statements 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 Standard applicable in the UK and Republic of Ireland (FRS102).

OBJECTIVES, ACTIVITIES AND POLICIES

The principal object of the Board, as set out in its Memorandum and Articles, is the promotion of the work of the Church of England in the Diocese of St Albans. The members of the Board are aware of the Charity Commission’s guidance on public benefit and have had regard to it in their management of the Board.

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

The Board continues to support engagement with other Christian churches and other faiths throughout the Diocese.

Together with the Bishop’s Council the Board seeks to develop comprehensive, sustainable strategies for the use of resources – people, finance and properties – to provide ministry and mission throughout the Diocese and to 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 Disciples. Living God’s Love is rooted in the parishes, and the effective deployment of Stipendiary

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Clergy is vital to that work. The Board aims to support and resource parochial mission and ministry through the payment of stipends and the provision of housing and training.

The number of ordained ministers as at 31 December[1] were:

2025
2024		 2023 2022
Bishops and Archdeacons 5
6		 6 5
Cathedral Clergy 7
6		 7 7
Parochial clergy – Incumbent status
188
190		 200 190
Curates 39
48		 56 54
Non-parochial clergy 25
24		 26 28
Total 274 295 284

As at 31 December, there were:

As at 31 December,there were:
2025 2024 2023 2022
Self-supporting ministers 37 42 47 47
Licensed readers 222 223 229 235

The Diocese continues to:

Funding of stipendiary clergy and the provision of housing accounts for the majority of the Board’s expenditure (see Note 6 to the accounts) and is achieved by:

1 Statistics report for St Albans Diocese as at the end of December 2025 produced by the Church Commissioners.

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divestment following a Diocesan Synod resolution in October 2022. The Board continues regularly to review its investments. This includes systems for monitoring and reporting on ethical issues, online reporting and close networking with members of the Ethical Investment Advisory Group of the Church of England (EIAG) and the Charities Investment Group (CIG). The portfolio of listed investments at 31 December 2025 had a market value of £62.9m (2024 £61.0m).

POLICIES

Grant making policy

The following grants are administered by the Parish Grants Committee:

The following welfare funds are administered by the Parish Grants Committee:

Reserves policy

The Board reviews the level of working capital to ensure that it covers core costs and there is suŨcient cash flow to conduct the activities of the charity on a day-to-day basis. The majority of the Board’s budget is expended on the monthly payment of stipends and salaries. Any action to deal with cash flow problems arising from parish share shortfalls will take time to implement. Therefore, the Board has agreed that the level of free reserves should ideally be not less than eight and not more than sixteen weeks’ expenditure. At the end of 2025, the free and realisable unrestricted reserves totalled £5.3 million representing 15.0 weeks of expenditure (2024 - £5.2 million representing 15.7 weeks of expenditure).

Costs remain under tight control. However, parish giving remains fragile given economic conditions over the last few years, combined with continuing reductions in church attendance in many but not all parishes. Last year yielded a surplus on the Common Fund before investment gains and losses and taking into account total return. The underlying concerns over parish giving means the Board will continue to monitor and manage the ongoing consequences carefully.

It is the Board’s policy to set aside, in a Property Ring-Fenced Fund, capital receipts from the sale of former parsonage houses that become surplus to needs after pastoral reorganisation. The purpose of this fund is to invest in income generating assets in order to fund improvements to its remaining housing stock. The value of the investments at the end of the year in the fund amounted to £3.2 million (2024 £6.3 million).

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Fundraising Activities

The Charities (Social Protection and Social Investment Act) 2016 requires large charities to include a statement within their financial statements with respect to fundraising activities. The legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes.” While the Board of Finance does not routinely undertake fundraising from individuals (including any potentially vulnerable groups), it may periodically apply for grant funding from grant-awarding bodies.

The charity raises funds through Parish Share and on occasions receives other donations and voluntary income. It aims always to achieve best practice in the way in which it communicates with parishes, donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on parishioners, parochial councils, donors and supporters. It applies best practice to protect their data and never sells data, never swaps data and ensures that communication preferences can be changed at any time.

The Board of Finance undertakes all such activities internally and does not engage with professional fundraisers or third parties. The day-to-day management of income generation is delegated to management who are accountable to the trustees.

Owing to the low level of fundraising activity, the Board of Finance are not registered with the Fundraising Regulator and are not bound by any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising.

The charity did not receive any complaints in relation to fundraising activities during the year ending 31 December 2025.

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GOVERNANCE STRUCTURE

The Bishop’s Council is a statutory body established under the Synodical Government Measure 1969. It acts as the Standing Committee of the Diocesan Synod and carries on the work of the Synod between sessions. It advises the Diocesan Bishop and has, since its inception in 1970, gradually assumed an important role in the formulation of diocesan policy. The Bishop’s Council has the following Boards and Committees:

The Diocesan Board of Finance has the following Committees:

The diocese has other statutory and operational Boards and Committees that are not directly connected to the Board:

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In addition, whilst the Diocesan Board of Education a body operating within the Board’s governance oversight and whose finances are part of the Consolidated Financial Reports. It is a statutory body established under the Diocesan Boards of Education Measure 2021.

OPERATIONAL ACTIVITIES

BISHOP’S COUNCIL

Synod and advising the Diocesan Bishop on any matter about which he consulted the Council. The Council also exercised the role of the Diocesan Mission and Pastoral Committee. During the year, the Council met on six occasions.

Membership: The new triennium commenced in January with an address from the Bishop of St Albans and presentations on Diocesan governance and the work of the Diocesan Mission and Pastoral Committee. The Council appointed members to the Agenda Committee, Diocesan Mission and Pastoral Committee Executive Committee and Board for Mission and Ministry.

Vacancy in See : Following the announcement in January of the Bishop of St Albans’ impending retirement, the vacancy process commenced including completion of the Vacancy in See Committee. That Committee produced the Diocesan Statement of Need and elected six representatives to the Crown Nominations Commission.

Diocesan Finances : The Council approved allocations from designated funds. These included up to £39k as interim funding for the Alban Way project, £60k for Minor Repair and Improvement Grants for church buildings and £250k for Mission Initiative Grants. Council members considered the developing budget proposals for 2026 and recommended to the Diocesan Board of Finance that the National Stipends Benchmark be adopted from April 2026, resulting in a 6.8% increase in stipends.

Safeguarding : The Council received regular operational updates throughout the year. The Chair of the Diocesan Advisory Panel and the Diocesan Safeguarding OŨcer attended a meeting to provide further insight and assurance.

Governance : The Council expressed its thanks to the Nominations Committee for its work in supporting committees to become younger and more diverse, whilst recognising that further progress was needed. It was agreed that the Nominations Committee would consider advising the Acting Diocesan Bishop and the Houses of Clergy and Laity on nominations and co-options to Diocesan Synod.

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Risk Management : The Council received and considered the diocesan risk register with the associated mitigation actions.

Joint Working and Partnerships: A joint meeting of the Bishop’s Council and the Diocesan Board of Finance was held in March and noted the respective but overlapping roles of the two bodies. At a subsequent meeting the Council expressed its support for the reformation of the Governance Restructuring Working Party. The working party was tasked with preparing a feasibility study on the potential integration of the two bodies.

Reports and Updates: The Council received and considered reports and updates from the following bodies:

DIOCESAN ADVISORY COMMITTEE

The DAC is a statutory body whose functions are set out in ecclesiastical legislation. Its role is to advise the Chancellor and parishes on proposals for works to church buildings and churchyards and church furnishings, and to advise generally on the care and development of churches. The DAC focused on making church buildings more versatile for both worship and community use.

13 Annual Report and Consolidated Financial Statements

The enlarged DAC staff team, funded by Historic England and the Church of England:

The DAC has worked with the Chancellor and Diocesan Registry to produce Additional Matters Orders, simplifying the permission process for matters ranging from third-party hiring and guidance, filming (updated provisions) and churchyard scaffolding for neighbours, to electric heating and updated churchyard regulations (see below).

Following a national review of churchyard regulations by diocesan chancellors, the DAC has worked with the Chancellor to review, update and re-issue the St Albans Churchyard Regulations, guidance and statutory forms. The DAC, staff team, archdeacons and Registry have continued to see a high volume of complex and pastorally diŨcult cases. This led to training being offered to clergy and churchwardens on churchyard management, including memorial safety demonstrations by memorial mason Richard Lee.

Much of the time in committee meetings and at site visits – perhaps the most valuable DAC contribution to those parishes - was taken up by discussion about major projects as they developed from initial needs and ideas to detailed plans.

The Diocesan NZC OŨcer worked with the DAC’s technical advisers to update a suite of heating resources for parishes and undertook research comparing the comfort of different heating systems. An analysis of QI reports showed no greater prevalence of damp in churches with under pew or infrared heating compared to space heated churches. The Chancellor considered each case on its merits and directed that specific conditions should be adhered to; more recently she has set out the conditions she is likely to apply in such cases to assist the DAC in providing advice to parishes.

DIOCESAN BOARD OF EDUCATION (DBE)

The Board works with 136 schools, 102 of which remain within the maintained sector and 34 academies, including 5 multi-academy trusts. This work coalesces around two broad areas. Firstly, the role of the DBE as the relevant religious authority for church schools in the Diocese of St Albans (school organisation). Secondly , t he role of resourcing and supporting church schools to live their unique Christian vision for education (Christian character of church schools)

The Board seeks to provide stability, pastoral support, expertise and guidance through the work of its Schools Team and its Service Level Agreement (SLA). In September 2025, 135 out of 136 schools joined the SLA. 2025 saw the facilitation of 59 training and development events. 132 schools engaged with at least one of these over the course of the year. Three senior leaders from St Albans were awarded grants to attend the 2025-26 cohort of the Church School Leadership Course run in partnership with Chelmsford Diocese.

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In September 2025, four new Headteachers started in post and one school will enter the 202526 academic year with Acting Headteacher arrangements. The DBE, through its SLA, is providing coaching for the first two years of headship to each of them. It is hoped that by walking alongside them through coaching, Headteacher wellbeing will be supported in this vital first year.

The ongoing financial challenges that schools face are well documented. There are several schools which are seeing a reduction in pupil numbers. Capacity and demand for school places are not always aligned. The Board is working with local authority partners to ensure that any changes take account of the overall number of church school places. Hertfordshire County Council put forward proposals in the autumn of 2025 for two church schools to close by the end of August 2026, and these are progressing through the Council’s consultation process with a final decision in the spring of 2026.

In the Diocese, the access to support for children who have Special Educational Needs and Disabilities is mixed across local authorities. Schools in the Diocese continue to support all of the children and young people in their care and place inclusion at the forefront of their work. This commitment to inclusion can place extra financial pressures on schools. The Board has as a priority the pastoral support of school leaders. It remains grateful for all of those who undertake governance roles voluntarily in support of its schools.

Two diocesan schools are now part of the DfE’s new flagship intervention programme for school improvement, Regional Improvement for Standards & Excellence (RISE). 39 capital building projects were supported in Voluntary aided schools, with funding totaling around £2.4m. Of these, a significant number were for roofing works, with several projects focusing on the safeguarding of school sites.

Seven schools in the Biggleswade area successfully made the transition from three to two tier provision under the Central Bedfordshire re-structuring programme. This reorganisation will eventually lead to the creation of three new CofE secondary schools from existing middle schools in the Diocese. The Diocese of St Albans Multi-Academy Trust welcomed St Leonard’s Heath & Reach Academy in September, bringing the total number of schools in DSAMAT to 15.

The theme for this year's School Leaders Conference was ‘Spiritually Flourishing School Communities: culture, curriculum and collective worship’. Spirituality sits at the very heart of education; it relates to who we are and how we understand, relate to and act with/for others and the world. Over 100 people attended the conference, including Headteachers, Trust Leaders, members of the DBE, clergy, chaplains and other diocesan staff.

Following a comprehensive recruitment process, Mr Duncan Gauld, CEO of the Chess Valley Primary Learning Trust, was appointed as the new Diocesan Director of Education in February 2025 and took up post on 1 June 2025. The Board is grateful to Charlotte Johnson, Deputy Director of Education, for serving as Interim Director of Education and for all the Schools Team staff in ensuring stability and a smooth transition.

DIOCESAN BOARD OF MISSION AND MINISTRY

Nine new members were elected to serve on the Board of Mission and Ministry for the next triennium. They bring a breadth of experience and expertise in ordained and lay ministry, youth work, counselling, coaching and education which is further enriching governance discussion.

15 Annual Report and Consolidated Financial Statements

Sixty Rural Dean and Lay Chairs met with senior staff in February, concentrating on ‘Participating in Christ’s Mission’, particularly in the contexts of their own deaneries. Thirty clergy from a range of contexts and church traditions gathered for the fourth Symposium on the Mixed Ecology of Church. Many attending value the opportunity for theological reflection and sharing experiences of trying new things.

Listening Together was launched across deanery synods and other settings. This prayerful process enables clergy, lay leaders and congregations to reflect on how God is calling the Diocese to develop ministry in the coming years. Progress was made on widening participation in ministry, with plans drawn up for research into barriers faced by under-represented groups seeking lay or ordained ministry. Work advanced on scoping a possible new Diocesan Discipleship resource, envisaged as an accessible podcast-based tool to complement existing courses.

Increased numbers explored calling to lay and ordained ministry. The team hosted events such as ‘God Calling,’ ‘Life in the Vicarage,’ and the annual Candidates Conference, refreshed online resources, and re-established a presence at a school careers fair. The Ministry Experience Scheme also relaunched, with three participants beginning year-long placements.

During the year there were 25–27 ordinands in training and 14 new deacons were ordained - double the previous year’s number. Candidates were supported throughout discernment, training and financial planning, and curacy placements for 2025 were successfully secured despite housing pressures. Matching for the 2026 cohort progressed well.

New candidates entered training for Reader Ministry, the new Enabling Ministry Course launched with 27 participants, and the Lay Leaders of Worship programme grew steadily. Flexible pathways helped more people explore and develop their gifts.

Work began on reshaping the programme to strengthen formation and improve support for Training Incumbents. The Diocese continued to prioritise wellbeing, offering wellbeing-related training alongside the Year of Spiritual Renewal and Wellbeing.

Integration of the work across the team continued, developing a more seamless experience for those served by the team. As part of this, the articulation of a shared purpose was produced: ‘We enable people to respond to God’s call, be nurtured in their discipleship, and equipped in their ministry,’ and began with a programme of listening to those accompanied, starting with ordinands and Readers in training. Despite changes to the staŨng structure, the team continued to provide consistent, prayerful and proactive support for all in the Diocese exploring and exercising their ministry.

94 % of parishes have now engaged in Mission Action Planning, with four churches progressed from never having created a MAP to having an up-to-date MAP for the first time.

A series of webinars were held in key aspects of giving and planning for mission. An online prayer event began for those involved in ministry in the rural church. A follow-up session was held for churches who had attended the Leading your Church Into Growth conference. Training and resources were provided to first incumbents and other leaders on how to lead missional change

Parishes who engaged in the diocesan led giving campaign increased their regular giving by an average of 16%. The most successful saw a 30% increase in regular giving! Three Giving Case

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Study videos showing best practice in parishes have been watched 275 times. In-depth strategic Giving Advisor support to 34 new parishes, in addition to ongoing support for many other parishes carried over from previous years. 40 contactless small grants of £250 were made to parishes in 2025 including full support for each parish from Digital Giving Assistant with purchasing a suitable device, setting up accounts and getting the device up and running in the church. A ‘Thank You’ short film resource for parishes to use was created.

The Alban Way continued to form young adults and children through prayer, pilgrimage, and shared discipleship. This year’s cohort included 25% participants of Global Majority Heritage and a significant number of neurodivergent young adults. A new UK pilgrimage to Lindisfarne has widened access, alongside the Camino.

Youthscape Essentials and Launchpad supported volunteers, clergy, and emerging leaders with accessible, practical training. Participants reported increased confidence and a shift towards more relational, dialogical approaches to ministry with children and young people.

Small mission grants, combined with training and support, enabled deanery-wide youth ministry in rural contexts. In Shefford and Ampthill Deanery, churches are pooling leaders and resources to walk with young people together across the deanery.

Deanery Eco Champions have been appointed in Biggleswade, St Albans, Watford and Wheathampstead deaneries to provide support and encouragement for parishes in their environmental and sustainability work.

The numbers of churches involved in Eco Church and progressing to Bronze and Silver awards continues to grow, with 37% of all churches now registered on this free scheme which provides a framework and resources for churches to develop their environmental work as part of their Christian witness. Carbon Literacy Training has been successfully delivered online and in-person, as a one-day course and in a format for small groups.

STRATEGIC REPORT

FINANCIAL REPORT FOR THE YEAR

Overview

generally good income collection. Sales in the Linmere trading subsidiary were particularly strong in the year, allowing a charitable donation of £3m to be made to the parent company in year.

support to parishes where sustainability and growth are issues. This stability is clearly visible in that even with a downturn in asset values due to diŨcult economic circumstances, there has been an overall increase in funds. The overall spread of assets has generally meant that when some areas struggle others can compensate. Prudent long term financial management has also strengthened funding.

At the same time the Diocese has to be mindful of the strength of its position when some parishes are struggling with attendance, giving and rising costs. During 2025, the Diocesan Board

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of Finance and its committees have been giving thought as to how best to use the funds for the wellbeing of clergy and the benefit of parishes. It has been possible to give grants in support of missional activities and maintenance of church buildings. Cost increases, particularly in stipends, have been absorbed rather than being passed on to parish share. However, support for parishes has been taken further in 2026 with a reduction in parish share as a result of an increase in income from total return, following a review of the policy. The need to improve housing stock, following decades of insuŨcient attention to repairs, maintenance and improvement is also key and funds beyond the Common Fund are being used to support this increase in activity.

Results for the year

Total income amounted to £35.7m compared to £22.9m in 2024, an increase of £12.8m. This increase is entirely due to higher sales from the Linmere trading subsidiary, reflecting the sales that occurred in the year. All other income, from the Charity, showed slight variations, with an overall small decrease of £0.3m.

During 2025, Parish Share contributions amounted to £13.3m (2024 - £13.3m). This amount included contributions by parishes in respect of earlier years’ “shortfalls” of approximately £64k (2024 - £146k). The collection rate for Parish Share for 2025 (amount received/amount requested) was 90.84% (2024 - 91.25%) which continues the trend of the last few years of small but noticeable decreases in the collection rate.

Expenditure totalled £32.1m in the year compared to £21.7m in 2024, an increase of £10.4m The associated costs of the property sales in the Linmere trading subsidiary contribute £8.6m to this. The remaining increase of £1.8m is due to general increases in costs across the board, particularly the intentional increase in grant payments (£0.4m) in parish support for repairs, rebuilding and missional activities and support costs (£0.4m) as result of the increase in NI costs and extra posts funded outside of the common fund.

Net income before revaluations and investment asset disposals amounted to £3.6m (2024 - £1.2m net income), again reflective of the property sales in the Linmere trading subsidiary. The net realised and unrealised losses on investment properties and listed investments totalled £705k (2024 - £4.8m gain). The prior year adjustment, discussed in note 34 to the accounts reduced the unrealised gain from last year. There was still a significant gain in 2024 against a loss for 2025, reflecting the global uncertainties, but also concerns about with the relatively disappointing performance of fund managers. Nevertheless, there was still a net increase in funds for the year of £2.9m (2024 - £6.1m) due to the sales from the Houghton Regis (Linmere) development showing that the Diocese’s underlying position remains healthy. The Common Fund showing an increase of £53k (2024 - £564k) – see note 25 - which includes a total return transfer that provided an extra £1,059k of income (2024 - £985k).

Funding position

The consolidated balance sheet showed total funds of £214.9m (2024 - £212.0). This figure included endowment funds of £167.7m (2024 - £166.2m), the biggest part of this being the parsonage houses fund amounting to £78.3m (2024 - £77.2m).

Also included in total funds were restricted funds totalling £15.4m (2024 - £16.1m). These monies have either been raised for, and their use restricted to, specific purposes or they comprise donations subject to donor-imposed conditions. Further details of these restricted

18 Annual Report and Consolidated Financial Statements

movements in the year.

Funds totalling £21.0m (2024 - £20.4m) had been designated, or set aside, by the Board for specific purposes. These purposes and an analysis of the movements on the funds are set out in note 25 to the financial statements.

FUTURE PLANS

The key feature of Diocesan life in recent years has been maintaining both vision and operations, in the context of the long-term trend of decline in Church of England attendance and the specific shock of lockdown and church closures resulting from the COVID 19 pandemic. Recent years have been characterised by settled leadership with a strong commitment to enabling all in the diocese to walk together despite issues that divide the national church.

In January 2025 Bishop Alan announced his retirement, effective from 31 May 2025. The Diocese therefore entered a period of vacancy in the See of St Albans. The formal process of appointment has led to the Rt Revd Dr Andrew Rumsey, Bishop of Ramsbury being elected as Diocesan Bishopelect. It is hoped that Bishop Andrew will be installed in the Diocese in September.

The diocese is grateful to the Bishop of Bedford for serving as Acting Bishop of St Albans and to all in leadership and in governance bodies for enabling diocesan life to continue to function as usual.

It can reasonably be expected that Bishop Andrew will lead a reset of strategic vision for the diocese. Under Bishop Alan the vision of Living God’s Love was promoted, to encourage churches to engage more missionally and similar focus is anticipated under the next Diocesan Bishop. Boards and Committees will continue working to support that vision by resourcing parochial mission and ministry and offering help and guidance to parishes. The national church strategic vision of ‘Growing Younger and More Diverse’ will continue to be an important part of future work within the Diocese.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board continues to review the risks faced by the charity using the risk register adopted in July 2025 and a review by both the Board and the Bishop’s Council takes place annually with updates on any changes to risk and mitigation more regularly.

risks. The top residual risks after mitigation are considered to be:

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the bodies and individuals responsible for the risk are identified. The Board recognises that whilst mitigation of risk is a key responsibility, there are some individual risks where only limited mitigation is available.

CUSTODIAN FUNDS

As at 31 December 2025, the St Albans Diocesan Board of Finance held funds on behalf of parishes, church schools and general trust funds within the Diocese with a market value of approximately £40.6m (2024 - £42.3m) as Custodian Trustee.

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 Investment Management Limited. At all times, funds held by the charity as Custodian Trustee are segregated clearly from those belonging to the charity itself.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The St Albans Diocesan Board of Finance is a registered charity (Charity Registration No 248887) and a company limited by guarantee (Company Registration No 00145227 (England and Wales)). It is constituted in accordance with the Diocesan Boards of Finance Measure 1925.

Liability of the members of the company

Each company member has undertaken to contribute to the assets of the company in the event of it being wound up whilst he or she is a member, or within one year after he or she ceases to be a member. The contribution, which cannot exceed £1, may be applied toward the payment of the debts and liabilities contracted before he or she ceased to be a member.

Organisation

The members of the Board are empowered by the Articles of Association of the company to act as the company directors of the St Albans Diocesan Board of Finance. The members also act as trustees of the Board for the purposes of charity legislation.

The Diocesan Synod is the democratically elected decision-making body of the Diocese and its standing committee, the Bishop’s Council, is responsible for the formulation of diocesan policy.

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 to its committees.

20 Annual Report and Consolidated Financial Statements

Related bodies

Board for Mission and Ministry. These bodies report to the Diocesan Synod which has overall responsibility for policy. The Synod delegates its day-to-day business to its standing committee, the Bishop’s Council.

Members

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 received any remuneration in connection with their duties as members of the Board during the year. No expenses incurred in the performance of their duties as Board members were reimbursed during the year.

Member – selection and appointment

17 members are elected by the Diocesan Synod (of whom five should be clerks in Holy Orders and 12 laypersons) and up to five are nominated by the Bishop of St Albans. The Bishop of St Albans is an ex-oŨcio member of the Board. Members of the Board are elected to serve for a period of three years, after which period they may offer themselves for re-election. Elections were held at the end of 2024 to appoint members for the triennium 1 January 2025 to 31 December 2027.

Member induction and training

On agreeing to become a member of the charity, the members are thoroughly briefed on the history of the charity, the day-to-day management, the responsibilities of the members, the current objectives and future plans. The members are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up to date on any changes in legislation.

Remuneration of key management personnel

Key management personnel comprise all the members of the Board, together with the senior executives which includes the Diocesan Secretary, the Director of Finance, the Director of Education, the Property Director, the Diocesan Pastoral and Advisory Secretary, the Director and Deputy Director of Mission and Ministry and Communications Director. The remuneration of all lay members of staff, including that of key management personnel, is set according to pay structures originally established by the Archbishops’ Council which have, in recent years, been adopted 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 (excepting Self Supporting Ministers), as oŨce holders within the Diocese, receive housing and stipends as part of their clergy role. Clergy stipends follow national stipends benchmarks as agreed annually by the National Church Central Stipends Authority adjusted for local economic factors.

21 Annual Report and Consolidated Financial Statements

Member’s responsibilities statement

The members of the St Albans Diocesan Board of Finance are responsible for preparing the members’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

give a true and fair view of the state of affairs of the group (consisting of the charity and two wholly-owned trading subsidiaries) and the charity and of the income and expenditure of the group for the financial year. Under company law the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the charity and of the income and expenditure of the group for that period.

The members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. They have responsibility for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

the Companies Act 2006.

included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Trading subsidiaries

The charity has two wholly owned trading subsidiaries. The principal activity of both companies is property development.

22 Annual Report and Consolidated Financial Statements

The St Albans Diocesan Property Company Limited (Company No. 08899302) is a company incorporated in England with a share capital of £7,700,000 (2024 – £7,700,000). During the year the company made a net profit of £4,500k (2024 – £289k) and made a charitable donation of £3,000k (2024 - £342k) to the charity. The donation in 2024 ensured that there was no tax liability for 2024. The donation for 2025, coupled with a further donation of £1,500k in 2026 will ensure the same tax outcome.

In 2018, the charity loaned the subsidiary £7m for two years to aid working capital. £1m of this was repaid in 2019. The remaining £6m loan was exchanged for equity in the company in 2022.

The St Albans Diocesan Property Company (Chesham) Limited (Company No. 15584524) is a company incorporated in England on 22 March 2024 with a share capital of £1,000. During the year the company made a net loss of £201k (from the period from its incorporation to 31 December 2024 - £117k).

The members' report, including the strategic report, was approved by the members and signed on their behalf by:

Tim Coulson Chair of the Board of Trustees

David White Diocesan Secretary

Approved on: 19 May 2025 18 May 2026

23 Annual Report and Consolidated Financial Statements

Independent Auditor’s Report to the members of the St Albans Board of Finance Year to December 2025

Opinion

(the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suŨcient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

concern basis of accounting in the preparation of the financial statements is appropriate.

to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

24 Annual Report and Consolidated Financial Statements

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on pages 23-24, the As explained more fully in the Members' Responsibilities Statement set out on page 22, the trustees trustees (who are also the directors of the parent charitable company for the purposes of (who are also the directors of the parent charitable company for the purposes of company law) are company law) are responsible for the preparation of the financial statements and for being responsible for the preparation of the financial statements and for being satisfied that they give a satisfied that they give a true and fair view, and for such internal control as the trustees true and fair view, and for such internal control as the trustees determine is necessary to enable the determine is necessary to enable the preparation of the financial statements that are free from preparation of the financial statements that are free from material misstatement, whether due to material misstatement, whether due to fraud or error. fraud or error.

25 Annual Report and Consolidated Financial Statements

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

Auditor’s responsibilities for the audit of the fnancial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

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

Identifying and assessing risks related to irregularities:

statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sectors in which the group and parent charitable company operate.

company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales and the Church of England Measures.

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

26 Annual Report and Consolidated Financial Statements

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional skepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

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

Helen Wilkie (Senior Statutory Auditor) for and on behalf of Saffery LLP

Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

Date: 11 June 2026 Saffery LLP is eligible to act as auditor in terms of section 1212 of Companies Act 2006.

27 Annual Report and Consolidated Financial Statements

Consolidated statement of fnancial activities Year to 31 December 2025

Consolidated statement of fnancial activities Year to 31 December 2025
Notes Endowment
funds
£’000
Restricted
funds
£’000
Unrestricted
funds
£’000
Non-
charitable
trading
funds
£’000
Total
2025
£’000
Total
2024*
£’000
Income and endowments
from:
Donations and legacies
1		 -
1
13,314
-
13,315
13,347
Investments
2		 1,717
489
1,246
92
3,544
3,567
Trading activities
27		 -
-
-
13,465
13,465
393
Charitable activities
3		 -
3,377
684
-
4,061
3,871
Other sources
4		 365
68
898
-
1,331
1,678
Total income 2,082
3,935
16,142
13,557
35,716
22,856
Expenditure on:
Raising funds
5		 390
155
21
9,176
9,742
835

Charitable activities
Promotion of the work of
the Church of England in
the Diocese of St Albans
6		 -
4,254
18,110
-
22,364
20,831
Total expenditure 390
4,409
18,131
9,176
32,106
21,666
Net income (expenditure)
before investment gains
and losses
9		 1,692
(474)
(1,989)
4,381
3,610
1,190
Realised gains on disposal
of investment property
and listed investments
14		 875
21
7
-
903
1,348
Unrealised (losses)/gains
on investment property
and listed investments
14		 (1,305)
(245)
(58)
-
(1,608)
3,432
Net income (expenditure)
before transfers and
taxation		 1,262
(698)
(2,040)
4,381
2,905
5,970
Total Return transfer
15		 (2,776)
-
2,776
-
-
-
Net income for the year
after Total Return transfer		 (1,514)
(698)
736
4,381
2,905
5,970
Other transfers between
funds
22		 3,000
37
(37)
(3,000)
-
-
Corporation tax credit
12		 -
-
-
22
22
139
Net income (expenditure)
and net movement in
funds for theyear		 1,486
(661)
699
1,403
2,927
6,109
Other recognised gains
and losses:
Actuarial gains
32		 -
-
-
-
-
-
Net movement in funds 1,486
(661)
699
1,403
2,927
6,109
Fund balances brought
forward at 1 January 2025		 166,202
16,051
25,498
4,257
212,008
205,899

Fund balances carried
forward at 31 December
2025
21		 167,688
15,390
26,197
5,660
214,935
212,008
*as restated

28 Annual Report and Consolidated Financial Statements

Comparative consolidated statement of fnancial activities Year to 31 December 2024 as restated

Notes Endowment
funds
£’000
Restricted
funds
£’000
Unrestricted
funds
£’000
Non-
charitable
trading funds
£’000
Total
2024
£’000
Income and endowments
from:
Donations and legacies
1		 -
3
13,344
-
13,347
Investments
2		 1,803
459
1,247
58
3,567
Trading activities
27		 -
-
-
393
393
Charitable activities
3		 -
3,064
807
-
3,871
Other sources
4		 1,406
5
267
-
1,678
Total income 3,209
3,531
15,665
451
22,856
Expenditure on:
Raising funds
5		 255
139
23
418
835

Charitable activities
Promotion of the work of the
Church of England in the
Diocese of St Albans
6		 -
3,597
17,234
-
20,831
Total expenditure 255
3,736
17,257
418
21,666
Net income (expenditure)
before investment gains and
losses
9		 2,954
(205)
(1,592)
33
1,190
Realised gains on disposal of
investment property and
listed investments
14		 858
250
240
-
1,348
Unrealised gains on
investment property and
listed investments
14		 3,142
217
73
-
3,432
Net income (expenditure)
before transfers and taxation		 6,954
262
(1,279)
33
5,970
Total Return transfer
15		 (2,624)
-
2,624
-
-
Net income for the year after
Total Return transfer		 4,330
262
1,345
33
5,970
Other transfers between
funds
22		 342
664
(664)
(342)
-
Corporation tax credit
(charge)
12		 -
-
-
139
139
Net income (expenditure) and
net movement in funds for the
year		 4,672
926
681
(170)
6,109
Other recognised gains and
losses:
Actuarial gains
32		 -
-
-
-
-
Net movement in funds 4,672
926
681
(170)
6,109
Fund balances brought
forward at 1 January 2024		 161,530
15,125
24,817
4,427
205,899
Fund balances carried forward
at 31 December 2024
21		 166,202
16,051
25,498
4,257
212,008

29 Annual Report and Consolidated Financial Statements

Consolidated balance sheet 31 December 2025

Non-
charitable
Notes Endowment Restricted
Unrestricted		 trading Total Total
funds funds funds funds 2025 2024*
£’000 £’000 £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 13 77,180 -
15,965		 - 93,145 90,181
Investments 14 72,060 13,049
8,215		 2,451 95,775 98,194
149,240 13,049
24,180		 2,451 188,920 188,375
Current assets
Stock: land under
development 16 - -
-		 10,554 10,554 13,692
Debtors – due within one
year 17 2,558 493
670		 4,849 8,570 1,917
Debtors – after one year 17 - -
201		 - 201 1,122
Short term deposits 2,662 2,199
2,972		 2,572 10,405 9,329
Cash at bank and in hand - 13
906		 - 919 1,112
5,220 2,705
4,749		 17,975 30,649 27,172
Creditors: amounts
falling due within one 18 (826) (654)
(336)		 (2,593) (4,409) (3,263)
year
Net current assets 4,394 2,051
4,413		 15,382 26,240 23,909
Total assets less current
liabilities before
eliminating inter-fund 153,634 15,100
28,593		 17,833 215,160 212,284
balances
Inter-fund balances 14,054 290
(2,171)		 (12,173) - -
Total assets less current
liabilities 167,688 15,390 26,422 5,660 215,160 212,284
Creditors: amounts
falling due after one year 19 - -
(225)		 - (225) (276)
Provisions for liabilities 20 - - - - - -
Total net assets 167,688 15,390
26,197		 5,660 214,935 212,008
Represented by:
The funds of the group
Endowment funds 23 167,688 -
-		 - 167,688 166,202
Restricted funds 24 - 15,390
-		 - 15,390 16,051
Unrestricted funds 25 - -
26,197		 - 26,197 25,498
Non-charitable trading
funds 25 - - - 5,660 5,660 4,257
167,688 15,390
26,197		 5,660 214,935 212,008

*as restated

Approved by the members of the Board and signed on their behalf by:

Tim Coulson Chair Approved on: 18 May 2026

The St Albans Diocesan Board of Finance Company Registration Number 00145227 (England and Wales)

30 Annual Report and Consolidated Financial Statements

Comparative consolidated balance sheet 31 December 2024 as restated

Non-
charitable
Notes Endowment Restricted Unrestricted trading Total
funds funds funds funds 2024
£’000 £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 13 77,179 - 13,002 - 90,181
Investments 14 75,312 12,706 7,775 2,401 98,194
152,491 12,706 20,777 2,401 188,375
Current assets
Stock: land under
development 16 - - - 13,692 13,692
Debtors – due within one
year 17 83 588 891 355 1,917
Debtors – after one year 17 - 49 374 699 1,122
Short term deposits 3,221 1,809 2,500 1,799 9,329
Cash at bank and in hand - 19 1,091 2 1,112
3,304 2,465 4,856 16,547 27,172
Creditors: amounts falling
duewithinone year 18 (485) (107) (124) (2,547) (3,263)
Net current assets 2,819 2,358 4,732 14,000 23,909
Total assets less current
liabilities before
eliminating inter-fund
balances 155,310 15,064 25,509 16,401 212,284
Inter-fund balances 10,892 987 265 (12,144) -
Total assets less current
liabilities 166,202 16,051 25,774 4,257 212,284
Creditors: amounts falling
due after one year 19 - - (276) - (276)
Provisions for liabilities 20 - - - - -
Total net assets 166,202 16,051 25,498 4,257 212,008
Represented by:
The funds of the group
Endowment funds 23 166,202 - - - 166,202
Restricted funds 24 - 16,051 - - 16,051
Unrestricted funds 25 - - 25,498 - 25,498
Non-charitable trading
funds 25 - - - 4,257 4,257
166,202 16,051 25,498 4,257 212,008

31 Annual Report and Consolidated Financial Statements

Charity balance sheet 31 December 2025

Notes Endowment
funds
£’000
Restricted
funds
£’000
Unrestricted
funds
£’000
Total
2025
£’000
Total
2024*
£’000
Fixed assets
Tangible assets
13		 77,180
-
15,965
93,145
90,181
Investments
14		 79,761
13,049
8,215
101,025
103,494
156,941
13,049
24,180
194,170
193,675
Current assets
Debtors – due within one year
17		 7,245
493
670
8,408
6,159
Debtors – due after one year
17		 -
-
201
201
423
Short term deposits 2,662
2,199
2,972
7,833
7,530
Cash at bank and in hand -
13
906
919
1,110
9,907
2,705
4,749
17,361
15,222
Creditors: amounts falling
due within one year
18		 (826)
(654)
(336)
(1,816)
(716)
Net current assets 9,081
2,051
4,413
15,545
14,506
Total assets less current
liabilities before eliminating
inter-fund balances		 166,022
15,100
28,593
209,715
208,181
Inter-fund balances 1,770
290
(2,060)
-
-
Total assets less current
liabilities		 167,792
15,390
26,533
209,715
208,181
Creditors: amounts falling
due after one year
19		 -
-
(225)
(225)
(276)
Provisions for liabilities
20		 -
-
-
-
-
Total net assets 167,792
15,390
26,308
209,490
207,905
Represented by:

The funds to the charity
Endowment funds
23		 167,792
-
-
167,792
166,202
Restricted funds
24		 -
15,390
-
15,390
16,051
Unrestricted funds
25		 -
-
26,308
26,308
25,652
167,792
15,390
26,308
209,490
207,905

As permitted by Section 408 of the Companies Act 2006, the charity has not presented its own income and expenditure accounts and related notes. The charity net income for the financial year was £1,585k (2024 – net income £6,277k restated).

Approved by the members of the Board and signed on their behalf by:

Tim Coulson Chair Approved on: 18 May 2026 The St Albans Diocesan Board of Finance Company Registration Number 00145227 (England and Wales)

32 Annual Report and Consolidated Financial Statements

Comparative charity balance sheet 31 December 2024 as restated

Notes Endowment
funds
£’000
Restricted
funds £’000
Unrestricted
funds
£’000
Total
2024
£’000
Fixed assets
Tangible assets
13		 77,179
-
13,002
90,181
Investments
14		 83,013
12,706
7,775
103,494
160,192
12,706
20,777
193,675
Current assets
Debtors – due within one year
17		 4,680
588
891
6,159

Debtors – due after one year
17		 -
49
374
423

Short term deposits		 3,221
1,809
2,500
7,530
Cash at bank and in hand -
19
1,091
1,110
7,901
2,462
4,856
15,222
Creditors: amounts falling due
within one year
18		 (485)
(107)
(124)
(716)
Net current assets 7,416
2,358
4,732
14,506
Total assets less current
liabilities before eliminating
inter-fund balances		 167,608
15,064
25,509
208,181
Inter-fund balances (1,406)
987
419
-
Total assets less current
liabilities		 166,202
16,051
25,928
208,181
Creditors: amounts falling due
after one year
19		 -
-
(276)
(276)
Provisions for liabilities
20		 -
-
-
-
Total net assets 166,202
16,051
25,652
207,905
Represented by:

The funds to the charity

Endowment funds
23		 166,202
-
-
166,202
Restricted funds
24		 -
16,051
-
16,051
Unrestricted funds
25		 -
-
25,652
25,652
166,202
16,051
25,652
207,905

33 Annual Report and Consolidated Financial Statements

Summary Consolidated income and expenditure account Year to 31 December 2025

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.

2025 2024
£’000 £’000
Total income of continuing operations 33,634 19,647
Total expenditure of continuing operations (31,716) (21,411)
Net income (expenditure) for the year before transfers, investment gains and 1,918 (1,764)
losses and taxation
Total return transfer 2,776 2,624
Other transfers to endowment funds (3,000) (342)
Net income before investment gains and losses and taxation 1,694 518
Investment (losses) gains (275) 780
Taxation credit 22 139
Net income for the year as defined by the Companies Act 2006 1,441 1,437

Total income as defined by the Companies Act 2006 comprises £29,699k (2024 – £16,116k) for unrestricted and non-charitable trading funds and £3,935k (2024 – £3,531k) 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 income before investment gains and taxation for the year of 1,693k (2024 – £518k expenditure) comprises net income of£2,131 (2024 - £852k income) on unrestricted and noncharitable trading funds and net expenditure of£437 (2024 – £334k expenditure) on restricted funds.

The summary consolidated income and expenditure account is derived from the consolidated statement of financial activities on page 28 which, together with the notes to the financial statements provides full information on the movements during the year on all funds of the group.

34 Annual Report and Consolidated Financial Statements

Consolidated statement of cash fows Year to 31 December 2025

2025 2024
Notes £’000 £’000
Cash flows from operating activities:
Net cash used in operating activities A (1,342) (4,118)
Cash flows from investing activities:
Dividends, interest and rent from investments 3,544 3,567
Proceeds from the disposal of tangible fixed assets - 1,576
Purchase of tangible fixed assets (3,032) (812)
Proceeds from the disposals of investments 23,540 17,330
Purchase of investments (21,845) (21,526)
Taxation reimbursed/paid - 80
Net cash provided by investing activities 2,206 215
Cash flows from financing activities:
Repayment of borrowing - -
Net cash used in financing activities - -
Change in cash and cash equivalents in the year 864 3,903
Cash and cash equivalents at 1 January 2024 B 10,470 14,373
Cash and cash equivalents at 31 December 2024 B 11,334 10,470

Notes to the statement of cash flows for the year to December 2025

A Reconciliation of net income to net cash flow used in operating activities

A
Reconciliation of net income to net cash flow used in operating activ		 ities
2025 2024*
£’000 £’000
Net income (as per the statement of financial activities: 2,905 5,970
Adjustments for:
Depreciation charge 68 63
(Gains) on investments 705 (4,780)
Dividends, interest and rent from investments (3,544) (3,567)
Surplus on disposal of tangible fixed assets - (344)
(Increase)/decrease in stocks 3,138 (1,861)
(Increase)/decrease in debtors (5,732) (630)
Increase in creditors 1,117 1,031
Pension adjustment - -
Net cash used in operating activities (1,342) (4,118)
*as restated
B
Analysis of cash and cash equivalents
2025 2024
£’000 £’000
Cash at bank and in hand 919 1,112
Short-term deposits 10,405 9,329
Cash held by investment managers 10 29
Total cash and cash equivalents 11,334 10,470

35 Annual Report and Consolidated Financial Statements

Analysis of changes in net debt

Analysis of changes in net debt
At 1 Jan 2025 Cash At 31 Dec
£’000 flows £’000 2025 £’000
Cash at bank and in hand 1,112 (193) 919
Cash equivalents 9,358 1,047 10,415
Total 10,470 854 11,334

The Group did not have any debt at 31 December 2025 (2024: none).

36 Annual Report and Consolidated Financial Statements

Principal accounting policies 31 December 2025

Basis of accounting

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

comparative information provided for the year to 31 December 2024.

recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

Charities: Statement 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) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006, except where the special nature of the St Albans Diocesan Board of Finance’s operations has required adaptation of the formats as allowed by section 396(5).

pounds.

Basis of consolidation

wholly owned subsidiary companies, St Albans Diocesan Property Company and St Albans Diocese Property Company (Chesham) Limited, made up to the balance sheet date.

Critical accounting estimates and areas of judgement

make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Going concern

The members of the Board have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. 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 statements.

37 Annual Report and Consolidated Financial Statements

Much of the parish share is received from congregants who give via regular church services. Congregations have increased since the pandemic and lockdown but are still seeing an overall decline. This has resulted in a continuing fragility to income received, a significant portion of it being from parish share. The charity has been able to combat this by the introduction of total return on investments and the reduction of expenditure.

a finance strategy that underpins the Diocesan missional strategy, whilst allowing control of costs. As a result, the financial position has been healthy for the past three years.

The members of the Board have concluded that accounting for the challenges faced, there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.

The members of the Board are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Income

Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured reliably, and it is probable that the funds will be received.

Income comprises donations and legacies, including Parish Share income, income from listed and property (glebe) investments, income directly related to charitable activities (including grants) and the surplus on disposal of tangible fixed assets.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP volunteer time is not recognised.

Legacies are included in the statement of financial activities when the charity is entitled to 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 to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Grants receivable on confirmation by the charity that specified performance criteria have been met are accounted for only once such criteria have been satisfied.

Income is deferred only when the charity has to fulfil performance related conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

38 Annual Report and Consolidated Financial Statements

Dividends are recognised once the dividend has been declared, and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Income from each sale of land under long term land development contracts is recognised on completion. Costs of each sale are apportioned based on the proportion of the land area sold.

Expenditure

Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered.

Resources expended comprise the following:

Support costs are those costs which enable charitable activities to be carried out. These costs include the expenses relating to finance, human resources, property management, communications and information technology. Where expenditure incurred relates to more than one activity it is apportioned using the most appropriate basis.

Grants payable are included in the statement of financial activities when approved and when committed. Commitment will usually arise when the intended recipient has either received the funds or been informed of the decision to make the donation.

School major repair and capital projects

The charity receives contributions from governors of Church schools in the Diocese in connection with major repair and capital projects to Church schools and also Government grants in connection with the same. Under the School Condition Allocation (SCA) funding scheme, monies are received and then allocated or spent. Projects are agreed by the Diocese, under the statutory and non-statutory guidance provided by the Department for Education (DfE). Because the Diocese has some limited discretion over the application of funds, it is the view that all income and expenditure under the SCA should be included in these accounts. Monies received have to be spent within a two-year time period or returned to the DfE.

Tangible fxed assets

All assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised except for freehold land and buildings discussed below.

39 Annual Report and Consolidated Financial Statements

Freehold land and buildings owned as at 31 December 2013 comprising parsonage houses and corporate residential properties are included in the financial statements at a valuation determined by the members of the Board 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 statement at cost, or where the cost is not known, at a valuation determined prior to 31 December 1999 by members of the Board. All of the above valuations have been deemed to be cost under the transitional provisions of FRS102. All other tangible fixed assets are included in the financial statements at cost, except for Holywell Lodge, where key building work is depreciated over a period of fifty years.

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.

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.

Improvement work for freehold buildings are capitalised when the cost is greater than £25,000 and meets the criteria that the expenditure enhances the capacity or functionality of the building. The capitalised improvements will result in structural enhancements, major refurbishments or reconfigurations. This work will be depreciated over a period of ten years.

Computer equipment is written off over a period of between three and six years and office equipment over a period of ten years, based on cost, in order to write the cost of each asset off over its estimated useful life.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

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 volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

40 Annual Report and Consolidated Financial Statements

Glebe property comprising agricultural land, retail property and residential property held for investment is included in the financial statements at a valuation based on rental yield. The valuation has been determined by the members after consultation with their professional property advisers. In the case of a small number of residential properties subject to long leases, rental yield comprises ground rent only and the resultant valuation reflects this. In assessing the recoverable amount of Glebe property, management has exercised judgement in determining that values should reflect orderly market conditions rather than distressed or “fire sale” scenarios. The numerous units that make up Glebe property are separate units and even if a number were to be sold at any one time, they would be subject to separate negotiations due to their random geographical spread and lack of obvious strategic alignment. Accordingly, valuations are based on expected proceeds from an orderly transaction between market participants.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Stock: land under development

Stock is stated at the lower of cost and net realisable value. The cost of stock includes the initial cost of the land, preliminary costs incurred prior to the commencement of construction and borrowing costs.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

41 Annual Report and Consolidated Financial Statements

Fund structure

The unrestricted funds comprise those monies which may be used towards meeting the charitable objectives of the charity and may be applied at the discretion of the members of the Board. Certain unrestricted funds have been set aside and designated for specific purposes by the Board.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions.

The endowment funds comprise assets which normally must be held as capital but, where permitted, 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 2025 does not change this and all transfers to unrestricted funds as a result of total return are in accordance with the terms of the endowment funds.

The non-charitable trading funds represent the retained profit arising on the charity’s trading subsidiaries.

Financial instruments

Apart from fixed asset investments held at fair value, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.

Pension costs

administered by the Church of England Pensions Board. The charity is unable to identify its share of the underlying assets and liabilities of the schemes on a reasonable and consistent basis. Therefore, in accordance with FRS102, it has accounted for its normal contributions as if the schemes were defined contribution schemes. Normal contributions are charged to the statement of financial activities when payable. The present value of the expected deficit recovery contributions are recognised as a liability at the balance sheet date. The amount is reviewed annually taking into account any changes to the deficit contribution rate or the implicit rate of interest used in discounting the liability.

Custodian funds

Funds held by the charity on behalf of parishes, church schools and other entities and over which the charity has no power to make management decisions are classified as custodian funds and are not included in the financial statements. Instead, the funds held are disclosed by way of a note to the financial statements.

42 Annual Report and Consolidated Financial Statements

Notes to the fnancial statements 31 December 2025

1 Income from donations and legacies

Restricted Unrestricted Total
funds funds 2025
£’000 £’000 £’000
Parish Share - 13,272 13,272
Specific parochial donations - 9 9
General donations and legacies 1 33 34
2025 total funds 1 13,314 13,315
Restricted Unrestricted Total
funds funds 2024
£’000 £’000 £’000
Parish Share - 13,314 13,314
Specific parochial donations - 6 6
General donations and legacies 3 24 27
2024 total funds 3 13,344 13,347

In addition to the above, the Diocesan Board of Finance received as trustees’ contributions of £561k (2024 – £379k) from the governors of Church schools in the Diocese in connection with major repair and capital projects.

2 Income from investments

Non-
Un- Charitable
Endowment Restricted restricted Trading Total
funds funds funds income 2025
£’000 £’000 £’000 £’000 £’000
Income from listed investments and interest
receivable 1,177 428 323 92 2,020
Glebe income 540 - - - 540
Income from miscellaneous rents and lettings - 61 923 - 984
2025 total funds 1,717 489 1,246 92 3,544
Non-
Un- Charitable
Endowment Restricted restricted Trading Total
funds funds funds income 2024
£’000 £’000 £’000 £’000 £’000
Income from listed investments and interest
receivable 1,335 435 488 58 2,316
Glebe income 467 - 2 - 469
Income from miscellaneous rents and lettings
1 24 757 - 782
2024 total funds 1,803 459 1,247 58 3,567

43 Annual Report and Consolidated Financial Statements

3 Income from charitable activities

3
Income from charitable activities
Restricted Unrestricted Total
funds funds 2025
£’000 £’000 £’000
Grants receivable 468 224 692
Fees and chaplaincy income - 460 460
Schools’ Service Level Agreements and Project levies 152 - 152
Grant funding for Schools Building Projects 2,355 - 2,355
Other income from courses and conferences 47 - 47
Grant from Church Commissioners’ DIP Funding 167 - 167
National Church allocations 188 - 188
2025 total funds 3,377 684 4,061
Restricted Unrestricted Total
funds funds 2024
£’000 £’000 £’000
Grants receivable 267 286 553
Fees and chaplaincy income - 521 521
Schools’ Service Level Agreements and Project levies 134 - 134
Grant funding for Schools Building Projects 2,199 - 2,199
Other income from courses and conferences 60 - 60
Grant from Church Commissioners’ DIP Funding 240 - 240
National Church allocations 164 - 164
2024 total funds 3,064 807 3,871

Grants receivable for the year which exceeded £100,000 from a single organisation were as follows:

follows:
2025 2024
£’000 £’000
Benefact Trust 119 141
City Churches Fund (Trust For London) 104 111
Hockerill Foundation 120 110
Church Commissioners’ Diocesan Investment Programme 155 240

4 Income from other sources

Un-
Endowment Restricted restricted Total
funds funds funds 2025
£’000 £’000 £’000 £’000
Income from sale of properties 197 51 795 1,043
Income from sale of Glebe land 168 - - 168
Miscellaneous income - 17 103 120
2025 total funds 365 68 898 1,331

44 Annual Report and Consolidated Financial Statements

Un-
Endowment Restricted restricted Total
funds funds funds 2024
£’000 £’000 £’000 £’000
Income from sale of properties 1,378 - 198 1,578
Miscellaneous income 28 5 69 102
2025 total funds 1,408 5 267 1,678

5 Expenditure on raising funds

Non-
Un- Charitable
Endowment Restricted restricted Trading Total
funds funds funds income 2025
£’000 £’000 £’000 £’000 £’000
Schools’ Service Level Agreements - 46 - - 46
Schools’ Courses - 18 - - 18
School Capital Projects - 69 - - 69
Investment management costs 75 22 21 - 118
Trading expenditure (notes 27 &28) - - - 9,176 9,176
Glebe expenditure 315 - - - 315
2025 total funds 390 155 21 9,176 9,742
Non-
Un- Charitable
Endowment Restricted restricted Trading Total
funds funds funds income 2024
£’000 £’000 £’000 £’000 £’000
Schools’ Service Level Agreements - 38 - - 38
Schools’ Courses - 18 - - 18
School Capital Projects - 59 - - 59
Investment management costs 83 24 23 - 130
Trading expenditure (note 26) - - - 418 418
Glebe expenditure 172 - - - 172
2024 total funds 255 139 23 418 835

45 Annual Report and Consolidated Financial Statements

6 Expenditure on the promotion of the work of the Church of England in the Diocese of St Albans

Year ended 31 December 2025
Year ended 31 December 2024
Restricted
funds
£’000
Unrestricted
funds
£’000
Total
2025
£’000
Restricted
funds
£’000
Unrestricted
funds £’000
Total
2024
£’000
Parochial clergy stipends
and related costs
Stipends
Pension contributions
National insurance
Removal and resettlement
Other clergy costs
Clergy housing costs
Parsonages (direct
exposure)
Allocation of support
costs
Sub total
Board of Finance
properties (direct
expenditure)
Ministry
Direct expenditure*
Allocation of support
costs
Education
Schools Condition
Allocation grants (note 23)
Direct expenditure
Allocation of support
costs
Mission
Direct expenditure
Allocation of support
costs
Grants payable (note 7)		 -
6,802
6,802
-
6,731
6,731
-
1,340
1,340
-
1,488
1,488
-
722
722
-
557
557
-
343
343
-
267
267
-
508
508
-
455
455
-
9,715
9,715
9,498
9,498
63
3,924
3,987
-
3,708
3,708
40
530
570
-
450
450
103
4,454
4,557
-
4,158
4,158
-
3
3
-
267
267
103
4,457
4,560
-
4,425
4,425
126
1,457
1,583
82
1,330
1,412
46
597
643
-
513
513
172
2,054
2,226
82
1,843
1,925
2,249
-
2,249
2,633
-
2,633
490
-
490
406
-
406
26
344
370
-
296
296
2,765
344
3,109
3,039
296
3,335
317
347
664
187
370
557
26
343
369
-
296
296
343
690
1,033
187
666
853
871
850
1,721
289
506
795
Total funds 4,254
18,110
22,364
3,597
17,234
20,831

46 Annual Report and Consolidated Financial Statements

7 Grants payable

The Diocese makes grants to institutions in accordance 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 Year ended 31 December 2025 Year ended 31 December Year ended 31 December Year ended 31 December Year ended 31 December 2024
Restricted Unrestricted Total Restricted Unrestricted Total
funds funds
2025		 funds funds £’000 2024
£’000 £’000 £’000 £’000 £’000
Church Schools
Other grants to schools 2 - 2 16 - 16
Parishes
To assist with repairs or
rebuilding costs 525 15 540 156 3 159
Pastoral Aid Support
Grants to assist in
meeting Parish Share
contributions - 29 29 - 141 141
Mission Initiatives - 601 601 - 289 289
Energy grants 55 166 221 - 4 4
External charities
For humanitarian relief
mission and evangelism 125 39 164 8 68 76
Clergy and clergy widows
Ordinands’ support 62 (1) 61 49 1 50
Discretionary grants for
the relief of financial
hardship 102 1 103 60 - 60
Total funds 871 850 1,721 289 506 795

8 Support costs

Total Total
2025 2024
£’000 £’000
Support staff costs 896 582
Support office costs 445 410
Governance costs 216 174
General Synod Requirement 395 389
1,952 1,555
Reallocated to charitable activities as follows:
Clergy housing 570 450
Ministry 643 513
Education 370 296
Mission 369 296
1,952 1,555

47 Annual Report and Consolidated Financial Statements

9 Net income (expenditure) before investment gains and losses

This is stated after charging:

Total Total
2025 2024
£’000 £’000
Staff costs (note 10) 2,933 2,045
Auditor’s remuneration:
Statutory audit services 41 42
Depreciation 68 63

Staff costs have increased in year by £888k mainly due to the adjustment to the pension surplus on the Church Workers’ Pension Fund which was recognised in its entirety as a credit to pensions in 2024. Additional parish-facing staff post were introduced during the year made possible by grants from external funding bodies.

10 Staff costs and employees

10
Staff costs and employees
Total Total
2025 2024
£’000 £’000
Staff costs during the year were as follows:
Wages and salaries 2,441 2,198
Social security costs 283 213
Other pension costs* 209 (366)
2,933 2,045

*Credit is a result of pension holiday of 29 months fully accounted for in 2024

Total Total
2025 2024
£’000 £’000
Staff costs per function were as follows:
Direct promotion of the work of the Church of England in the Diocese of St Albans 1,596 1,213
Other support staff 1,337 832
2,933 2,045

The average number of employees and office holders, analysed by function, was:

2025 2025 2024
2024
Full-time Part-time Full-time
Part-time
Direct promotion of the work of the Church of
England in the Diocese of St Albans 15
28		 13
26
Other support staff 15
13		 14
10
30
41		 27
36

The 41 (2024 – 36) part-time posts are equivalent to 23.4 full-time posts (2024 – 21.5).

48 Annual Report and Consolidated Financial Statements

The number of employees who earned over £60,000 (excluding employer’s pension contributions) during the year was as follows:

2025 2024
£60,001 - £70,000 3 3
£70,000 - £80,000 2 -
£80,001 - £90,000 2 1
£90,001 - £100,000 1 1

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 national insurance contributions) totalled £1,453k in the year to 31 December 2025 (2024 – £1,217k) including stipends and related employer’s pension and national insurance contributions in respect to Board members of £333k (2024 – £274k).

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 (2024 – none). During the year several members of the Board, who are also clergy within the Diocese, received stipends from the charity in connection with their religious and pastoral duties within the Diocese. These stipends totalled £333k (2024 – £274k) including pension contributions of £50k (2024 – £46k) to the Clergy scheme and other employer costs. However, no member of the Board received any remuneration in connection with their duties as members of the Board during the year (2024 – none). Nothing was incurred in travel expenses in the performance of their duties as Board members (2024 – less than£1k).

Eight clergy members benefited from clergy housing provided by the Board (2024 – eight members).

The Board’s insurance policy includes cover for Trustee Indemnity.

12 Taxation

The St Albans Diocesan Board of Finance is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

The charity’s subsidiary companies pay corporation tax on their taxable profits. If sufficient funds are available, the subsidiary companies may make a charitable donation to their parent charity which will reduce the corporation tax payable.

49 Annual Report and Consolidated Financial Statements

13 Tangible fixed assets

13
Tangible fixed assets
Other
freehold
Parsonage
land and		 Office
Group & Charity 2025 houses
£’000		 buildings
£’000		 equipment
£’000		 Total
£’000
Cost or deemed cost
At 1 January 2025 75,396
15,015		 311 90,722
Additions 1
2,966		 65 3,032
Disposals -
-		 - -
At 31 December 2025 75,397
17,981		 376 93,754
Depreciation
At 1 January 2025 -
(404)		 (137) (541)
Charge for the year -
(23)		 (45) (68)
Disposals -
-		 - -
At 31 December 2025 -
(427)		 (182) (609)
Net book values
At 31 December 2025 75,397
17,554		 194 93,145
At 31 December 2024 75,396
14,611		 174 90,181

Parsonage houses and corporate residential properties owned as at 31 December 2013 have been included in tangible fixed assets at a valuation at that date. 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 not 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 at their cost. The book value of other freehold land and buildings is based on cost, or where cost is not available, at a members’ valuation made in prior accounting periods. Other fixed assets are stated at cost.

The Board has opted to adopt a policy of not revaluing its tangible fixed assets as permitted on the implementation of FRS102. It is likely that the open market values of the groups 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 benefit 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.

50 Annual Report and Consolidated Financial Statements

In accordance with FRS102, to the extent that property is financed by Church Commissioners’ equity loans for sector ministry, it is excluded from both tangible fixed assets and the related creditors in the balance sheet.

14 Investments

Non-
Un- charitable
Group Endowment
funds		 Restricted
funds		 restricted
funds

Trading
Funds		 Total
2025		 Total
2024*
£’000 £’000 £’000
£’000		 £’000 £’000
Glebe property 30,456 - -
2,451		 32,907 37,157
Listed investments and
cash 41,604 13,049 8,215
-		 62,868 61,037
72,060 13,049 8,215
2,451		 95,775 98,194

*as restated

Non-
Endowment Un- Charitable
funds Restricted restricted Trading Total
Group as restated £’000 funds
£’000		 funds
£’000		 Funds
£’000		 2024*
£’000
Glebe property 34,756 - - 2,401 37,157
Listed investments and cash 40,556 12,706 7,775 - 61,037
75,312 12,706 7,775 2,401 98,194

*as restated

Charity Endowment
funds
£’000		 Restricted
funds
£’000

Un-
restricted
funds
£’000		 Total
2025
£’000		 Total
2024*
£’000
Glebe property 30,456 -
-		 30,456 34,756
Listed investments and cash 41,604 13,049
8,215		 62,868 61,037
Investment in subsidiary undertaking 7,701 -
-		 7,701 7,701
79,761 13,049
8,215		 101,025 103,494

*as restated

Charity Endowment
funds
£’000		 Restricted
funds
£’000		 Un-
restricted
funds
£’000		 Total
2024*
£’000
Glebe property 34,756 - - 34,756
Listed investments and cash 40,556 12,706 7,775 61,037
Investment in subsidiary undertaking 7,701 - - 7,701
83,013 12,706 7,775 103,494

*as restated

51 Annual Report and Consolidated Financial Statements

Movements in the group’s and charity’s investments during 2025, excluding those in subsidiary companies, were as follows:

Glebe Listed
property investments Total
£’000 £’000 £’000
Market value at 1 January 2025 37,157 61,008 98,165
Additions at cost 50 21,795 21,845
Disposals at book value (proceeds: £23,540k; net gains: (3,716) (18,921) (22,637)
£903k)
Net unrealised investment (losses) (584) (1,024) (1,608)
Market value at 31 December 2025 32,907 62,858 95,765
Cash awaiting investment - 10 10
32,907 62,868 95,775

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 to the Diocese for no consideration.

Glebe property held at 31 December 2025 comprised the following:

Group Charity
2025 2024* 2025 2024*
£’000 £’000 £’000 £’000
Agricultural land 25,185 29,400 22,734 26,999
Residual property 7,722 7,757 7,722 7,757
32,907 37,157 30,456 34,756

*as restated

52 Annual Report and Consolidated Financial Statements

Listed investments

Listed investments comprise units in funds held mainly by the Central Board of Finance of the Church of England (CBF) which are professionally managed on behalf of the CBF by CCLA Investment Management Limited, Sarasin & Partners UK and Baillie Gifford & Co. Remaining funds are held by Schroder and Company Limited and are in the process of being sold.

At 31 December 2025, the investment portfolio for both the group and charity included the following holdings which represented a material proportion of the total value of the fixed asset investment portfolio at that date:

investment portfolio at that date:
2025 2024
Percentage Market value Percentage Market
of portfolio £’000 of portfolio value
% % £’000
CCLA CBF Investment Fund – Income units 52.6 33,096 54.1 33,025
Sarasin Climate Active Endowment Fund Class A
Income 27.1 17,042 24.8 15,114
Baillie Gifford Responsible Global Equity Income
Fund B Accumulated 20.2 12,711 18.0 10,947
Other 0.1 19 3.2 1,923

All listed investments are held within the United Kingdom.

Investment in subsidiary companies

St Albans Diocesan Property Company Limited

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 its subsidiary company was converted to equity shares, bringing the total holding to 7,700,000 ordinary shares. Further details of the subsidiary and its trading results for the year to 31 December 2025 and financial position as at that date are given in note 26 to these financial statements.

St Albans Diocesan Property Company (Chesham) Limited

During 2024, the charity established a wholly owned subsidiary company, St Albans Diocesan Property Company (Chesham) Limited, with a called-up share capital of £1,000 ordinary shares. Further details of this investment are included within Note 27 to 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.

53 Annual Report and Consolidated Financial Statements

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. 3.5% of the value of investments, i.e., £2,776k in total (£2,624 in 2024), 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 to investments with regard to the above investment portfolios. The Board adopted and agreed a base-line asset value at 31 December 2017, indexed using CPI, and a distribution policy of 3.5% based on a five-year rolling average of capital values, to be reviewed every three years. During the review in 2025, the Board agreed to increase the distribution to 4% from 1 January 2026.

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 total return calculated as at the 1 January 2022 and valued at £18,811k 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 in the value of the unapplied total return, during the two years that total return has been applied, are set out in the following tables:

Trust for
investment		 Unapplied total
return		 Total
£’000 £’000 £’000
At 1 January 2025:
Base value of the permanent endowment 71,610 - 71,610
Unapplied total return - 15,225 15,225
Total 71,610 15,225 86,835
Movements during the year:
Investment returns: dividendsreceived - 1,785 1,785
Investment return: realised and unrealised losses - (431) (431)
Investment management feeds - (38) (38)
Glebe property expenses - (315) (315)
Unapplied total return allocated to income in the year - (2,776) (2,776)
Charitable donation from property company - 3,000 3,000
Add indexation of base level of endowment 2,376 (2,376) -
Net movements in the year 2,376 (1,151) 1,225
As at 31 December 2025
Base value of the permanent endowment 73,986 - 73,986
Unapplied total return - 14,074 14,074
Valuation as at December 2025 73,986 14,074 88,060

54 Annual Report and Consolidated Financial Statements

Trust for
investment		 Unapplied total
return		 Total
£’000 £’000 £’000
At 1 January 2024:
Base value of the permanent endowment 69,814 - 69,814
Unapplied total return - 11,130 11,130
Total 69,814 11,130 80,944
Movements during the year:
Investment returns: dividendsreceived - 1,729 1,729
Investment return: realised and unrealised losses - 6,595 6,595
Investment management feeds - (11) (11)
Glebe property expenses - (140) (140)
Unapplied total return allocated to income in the year - (2,624) (2,624)
Charitable donation from property company - 342 342
Add indexation of base level of endowment 1,796 (1,796) -
Net movements in the year 1,796 4,095 5,891
As at 31 December 2024
Base value of the permanent endowment 71,610 - 71.610
Unapplied total return - 15,225 15,225
Valuation as at December 2024 71,610 15,225 86,835

16 Stock: land under development

16
Stock: land under development
2025 2024
Group £’000 £’000
At 1 January 2025 13,692 11,831
Development cost 4,723 1,933
Borrowing costs 208 153
Disposals (8,069) (225)
At 31 December 2025 10,554 13,692

Land under development relates to a parcel of land that is being developed by the charity’s wholly owned trading subsidiary, St Albans Diocesan Property Company Limited. On 20 December 2017 St Albans Diocesan Property Company Limited signed a Collaboration and Equalisation Agreement with the owners and co-developers of adjacent land to its own near Houghton Regis. This agreement is pursuant to an existing Collaboration and Equalisation Agreement in place (“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 Houghton Regis Consortium which will manage the development and sales of land owned by each member of the Consortium. During the eight years to 31 December 2025, 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 each of the following years to date. The profits on these sales have been included in the group financial statements in the year appropriate to the transactions.

55 Annual Report and Consolidated Financial Statements

17 Debtors

Group Charity
2025 2024 2025 2024
Due within one year £’000 £’000 £’000 £’000
Amounts due from Parochial Church Councils:
Building loans - - - -
Parochial contributions (note (a) below) 171 53 171 53
171 53 171 53
Church Commissioners – Pastoral Account (note (b)
below) 4 1 4 1
Investment income receivable 69 116 69 116
Staff loans - 3 - 3
Due from subsidiary company (note (c) below) - - 4,687 4,597
Amount due in respect to sale of land 2,476 355 2,476 -
Sundry debtors and prepayments* 5,850 1,389 1,001 1,389
8,570 1,917 8,408 6,159

*The increase in sundry debtors is mostly due to the deferred proceeds of land sold through the trading subsidiary SADPC in 2025.

Group Charity
2025 2024 2025 2024
Due after one year £’000 £’000 £’000 £’000
Amounts due from Parochial Church Councils:
Equity loans to finance the purchase of curates’
houses (note (d) below) 161 171 161 171
Other loans 40 91 40 91
Sundry Debtors - 161 - 161
Other Debtors - 699 - -
201 1,122 201 423

Notes

56 Annual Report and Consolidated Financial Statements

18 Creditors: amounts falling within one year

Group Charity
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Church School buildings and maintenance 364 93 364 93
Grants committed 550 - 550 -
Corporation tax payable - 22 - -
Amount due to consortium development partners* 2,225 2,334 - -
Sundry creditors and accruals 1,270 814 902 623
4,409 3,263 1,816 716

creditor from a long-term creditor following a review of the terms of the agreement. This is a presentational change only.

Church schools’ buildings and maintenance represent receipts held and allocated to a project but not yet spent.

19 Creditors: amounts falling due after more than one year

Group
Charity
2025
£’000
2024
£’000
2025
£’000
2024
£’000
Amounts due to the Church Commissioners
Variable deposit rate and equity loans for the
purchase of curates’ houses
Loans owing more than one year		 185
40
186
90
185
40
186
90
225
276
225
276

The Church Commissioners’ loans have no fixed date of repayment. The equity loans bore interest at between 6.68% and 11.01% during the year. Two of these properties were sold in the year.

20 Provisions for liabilities

20
Provisions for liabilities
2025 2024
Group and Charity £’000 £’000
Clergy pension scheme deficit contribution liability - -

funded, no agreed deficit recovery payments are required from 1 January 2023 onwards, and the balance sheet liability as at both 31 December 2025 and 31 December 2024 is nil. Note 32 contains further details.

57 Annual Report and Consolidated Financial Statements

21 Summary of assets by fund

Charity Funds as
at 31 December
2025		 Tangible
Fixed
Assets
£’000		 Tangible
Fixed
Assets
£’000		 Investments
£’000		 Investments
£’000		 Current
Assets
£’000		 Current
Assets
£’000		 Creditors
£’000		 Creditors
£’000		 Inter-Fund
Balances
£’000		 Inter-Fund
Balances
£’000		 Net
Assets
£’000
ENDOWMENT
FUNDS
Stipends Capital
Fund		 - 21,057 224 - 3,138 24,419
Parsonage House
Fund		 77,180 - - - 1,078 78,258
Parsonage
Building Benefice
Fund		 - 2,867 345 - (776) 2,436
Glebe Fund - 55,837 9,338 (826) (1,670) 62,679
77,180 79,761 9,907 (826) 1,770 167,792
RESTRICTED
FUNDS
Consolidated Fund
for Statutory
Education
Pastoral Account
Committee for
Social
Responsibility
Parker Fund
Yapp Fund
Archdeacons
Discretionary
Funds under
£400k of
Investments
UNRESTRICTED
FUNDS
Common Fund
Designated Funds
Tangible Fixed
Assets
Property Ring-
Fenced Fund
Other Designated
Funds		 -
-
-
-
-
-
-
-
-
15,965
-
-
15,965		 9,228
-
643
725
708
618
1,127
13,049
1,439
-
6,613
163
8,215		 493
1,033
68
40
48
64
959
2,705
2,124
376
1,483
766
4,749		 (361)
(20)
(54)
-
-
-
(219)
(654)
(17)
(250)
-
(294)
(561)		 187
(282)
25
1
111
4
244
290
1,721
(1,364)
(4,857)
2,440
(2,060)		 9,547
731
682
767
867
686
2,111
15,390
5,267
14,727
3,239
3,075
26,308
Total Funds 93,145 101,025 17,361 (2,042) - 209,490

58 Annual Report and Consolidated Financial Statements

Charity Funds as at 31
December 2024*
Tangible
Fixed
Assets
£’000		 Investments
£’000		 Current
Assets
£’000		 Creditors
£’000		 Inter-
Fund
Balances
£’000		 Net
Assets
£’000
ENDOWMENT FUNDS
Stipends Capital Fund
-		 19,452 1,573 (10) 3,663 24,678
Parsonage House
Fund
77,179		 - 1 - 1,080 78,260
Parsonage Building
Benefice Fund
-		 2,688 243 (1) (654) 2,276
Glebe Fund
-		 60,873 6,084 (474) (5,495) 60,988
77,179 83,013 7,901 (485) (1,406) 166,202
RESTRICTED FUNDS
Consolidated Fund for
Statutory Education
-		 8,816 1,201 (152) (305) 9,560
Pastoral Account
-		 - - - 793 793
Committee for Social
Responsibility
-		 696 155 - (1) 850
Parker Fund
-		 753 262 - (222) 793
Yapp Fund
-		 737 46 - 113 896
Archdeacons
Discretionary
-		 535 29 - 138 702
Funds under £400k of
Investments
-		 1,169 772 45 471 2,457
- 12,706 2,465 (107) 987 16,051
UNRESTRICTED
FUNDS
Common Fund
-		 1,498 1,905 (148) 1,960 5,215
Designated Funds
Tangible Fixed Assets
13,002		 - 1,473 (269) (2,465) 11,741
Property Ring-Fenced
Fund
-		 6,106 528 (5) (337) 6,292
Pastoral Account
-		 - 922 58 (980) -
13,002 7,604 4,828 (364) (1,822) 23,248
Mission Development
-		 - - (36) 1,087 1,051
Other Funds
-		 171 28 - 1,154 1,353
13,002 7,775 4,856 (400) 419 25,652
Total Funds
90,181		 103,494 15,222 (992) - 207,905

*as restated

59 Annual Report and Consolidated Financial Statements

22 Other transfers between funds

The inter-fund transfers during the year were as follows:

Non-
En- charitable
dowment
Restricted		 Common Other trading
Group and Charity funds
£’000		 funds
£’000		 fund
£’000		 unrestricted
£’000		 funds
£’000
Funds designated for use of projects from
2024 funds -
-		 (500) 500 -
Support of Ministry Experience Scheme -
-		 (6) 6 -
Support of mission to parishes -
-		 (10) 10 -
Support provided for Disability Task Group -
(2)		 2 - -
Provision of support for repairs and
improvements to churches -
-		 (60) 60 -
Support for Alban Way -
(37)		 - 39 -
Movement of interest between funds -
-		 223 (223) -
Charitable donation from subsidiary
company to parent charity 3,000
-		 - (3,000)
3,000
(39)		 (350) 389 (3,000)

A transfer of £2,985k was made from the Property Ring-Fenced Fund to the Tangible Fixed Assets Fund, representing the purchase of houses in the year. This is not shown in the table as it takes place entirely between other unrestricted funds (see Note 25)

The inter-fund transfers during the previous year were as follows:

Non-
En- charitable
dowment Restricted Common Other trading
Group and Charity funds
£’000		 funds
£’000		 fund
£’000		 unrestricted
£’000		 funds
£’000
Funds designated for use of projects from
2023 funds - - (500) 500 -
Transfer of funding for Net Zero Carbon - (15) - 15 -
Support of Ministry Experience Scheme - - (6) 6 -
Support of Digital Roll-out Scheme - - (4) 4 -
Agree transfer of Strategic Development
Fund to support missional activities - (92) - 92 -
Transfer from type of fund - (22) - 22 -
Transfer of Pastoral Account to Restricted
funds - (793) - 793 -
Charitable donation from subsidiary
company to parent charity 342 - - - (342)
342
 686
 (510)
 (176)
 (342)

restricted fund, following consideration of the restrictions placed on it by church representation rules.

60 Annual Report and Consolidated Financial Statements

23 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 certain charitable aims.

At 1 At 31
January Income and Gains and December
2025 Expenditure losses Transfers 2025
Group and charity £’000 £’000 £’000 £’000 £’000
Endowment funds:
Stipends Capital Fund 24,678 478 53 (790) 24,419
Parsonage Houses Fund 78,260 (2) - - 78,258
Parsonage Benefice Fund 2,276 272 (13) (98) 2,436
Glebe Fund 60,988 944 (470) 1,112 62,574
166,202 1,692 (430) 224 167,688
At 1 Gains, At 31
January Income and losses and December
2024 Expenditure transfers 2024*
Group and charity £’000 £’000 £’000 £’000
Endowment funds:
Stipends Capital Fund 23,953 536 189 24,678
Parsonage Houses Fund 76,913 1,347 - 78,260
Parsonage Benefice Fund 2,168 79 29 2,276
Glebe Fund 58,496 992 1,500 60,988
161,530 2,954 1,718 166,202

*as restated

The endowment funds were established as follows:

61 Annual Report and Consolidated Financial Statements

The parsonage house belongs to the benefice (not to the Parochial Church Council nor the Board) and the ownership is vested in the “incumbent for the time being”. During a period of 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 puts a statutory obligation upon the Diocesan Parsonage Board (or Property Committee) to repair and ensure benefice houses, thereby relieving the incumbent of this responsibility.

The use of the fund is restricted under the Endowments and Glebe Measure 1976, which transferred ownership of all Glebe land and property from the benefice to 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 to the Common Fund are made following the adoption of a total return policy.

This fund represents net proceeds from the disposal of Glebe land subsequently invested to 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 the Parsonage 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.

62 Annual Report and Consolidated Financial Statements

24 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:

At 1 At 31
January Gains and December
2025
Income		 Expenditure losses Transfers 2025
Group and Charity £’000
£’000		 £’000 £’000 £’000
£’000
Consolidated Fund for Statutory
Education 9,560
2,962		 (2,895) (80) -
9,547
Pastoral Fund 793
120		 (67) - (115)
731
Committee for Social Responsibility
funds 850
27		 (168) (27) -
682
Creed Fund 119
4		 - (3) -
120
Trust for London (CCFS) 820
121		 (382) - -
559
Bishop’s Harvest Appeal 12
-		 (12) - -
-
Church Repairs Fund 354
17		 (22) (14) -
335
Parker Fund 793
32		 (30) (28) -
767
Archdeacons’ Discretionary 702
23		 (21) (18) -
686
Yapp Fund 896
-		 - (29) -
867
Historic Buildings Fund (105)
23		 (24) - 115
9
Minor repairs & Improvements to
Churches 28
98		 (120) - -
6
Church Building Support Officer (11)
34		 (23) - -
-
Ordinands’ Training Fund 228
(133)		 (70) - -
25
Grimthorpe Fund 234
3		 - (4) -
233
Disability Task Group 47
-		 (6) (3) (2)
36
Church Commissioners’ Net Carbon 56
56		 (79) - -
33
Zero
The Alban Way 6
88		 (84) - 39
49
SMMIB 6
167		 (155) - -
18
Year
of
Spiritual		 Renewal & (7)
110		 (78) - -
25
Wellbeing
Other restricted funds 670
182		 (173) (17) -
662
16,051
3,935		 (4,409) (224) 37
15,390

63 Annual Report and Consolidated Financial Statements

At 1 Gains, losses At 31
January and transfers December
2024 Income Expenditure £’000 2024
Group and Charity £’000 £’000 £’000 £’000
Consolidated Fund for Statutory
Education 9,578 2,796 (3,194) 380 9,560
Pastoral - - - 793 793
Church Commissioners’ Strategic
Development Fund 92 - - (92) -
Committee for Social Responsibility
funds 808 26 - 16 850
Creed Fund 113 4 - 2 119
Trust for London (CCFS) 804 131 (115) - 820
Bishop’s Harvest Appeal 12 - - - 12
Church Repairs Fund 356 18 (28) 8 354
Parker Fund 764 34 (22) 17 793
Archdeacons’ Discretionary 697 21 (28) 12 702
Yapp Fund 858 22 - 16 896
Historic Buildings Fund (109) 21 (17) - (105)
Minor repairs & Improvements to
Churches - 28 - - 28
Church Building Support Officer (2) 13 (22) - (11)
Ordinands’ Training Fund 289 48 (49) (60) 228
Grimthorpe Fund 227 3 - 4 234
Disability Task Group 72 - (25) - 47
Church Commissioners’ Net Carbon Zero 15 75 (19) (15) 56
The Alban Way (59) 131 (66) - 6
SMMIB (1) 114 (107) - 6
Year of Spiritual Renewal & Wellbeing - 3 (10) - (7)
Other restricted funds 611 43 (34) 50 670
15,125 3,531 (3,736) 1,131 16,051

The Consolidated Fund for Statutory Education is legally restricted by the trusts set out in Section 17 of the Education Act 1993. Its uses include:

64 Annual Report and Consolidated Financial Statements

Movements on the Consolidated Fund for Statutory Education during the year can be summarised as follows:

2025 2024
Group and Charity £’000 £’000
Income
Investment income 253 278
Grants received 120 96
Rental income from school properties 35 29
Service Level Agreement income 108 89
School Courses 51 61
Grant funding from SCA 2,355 2,199
School Building Projects levy 40 44
Total income 2,962 2,796
Expenditure
Education (2,895) (3,194)
Net (expenditure)/income before investment gains and transfers 67 (398)
Investment gains (losses and transfers (80) 380
Net (expenditure)/income (13) (18)

The fund is represented by the following net assets:

2025 2024
Group and Charity £’000 £’000
Investments 9,228 8,815
Debtors 480 654
Short term deposits 13 678
Creditors: amounts falling due within one year (361) (281)
Inter fund balances 187 (306)
Total net assets 9,547 9,560

The SCA (Schools Condition Allocation) 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 spent within two years of receipt or returned to the DfE. The cycle is longer than the accounting period, so the transactions in a year will show as a surplus or deficit according to the timings of all the individual projects. This means that across several years, the position will be break-even, whilst any individual year will show a surplus or deficit depending on the phasing of the projects.

65 Annual Report and Consolidated Financial Statements

The specific purposes for which the other restricted funds are to be applied are as follows:

Fund Application/purpose
Church Commissioners Grant funding received from Church Commissioners co-funding
Strategic Development Fund the Reaching New People project
Consolidated Fund for Statutory Application of net sales proceeds of closed church schools under
Education section 17 of the Education Act 1993.
Committee for Social Formerly held under the charity registered number 291355, grants
Responsibility Funds are awarded by the Committee for Social Responsibility, which is a
sub-committee of the Board for Mission and Ministry
Creed Fund Evangelism and mission at the discretion of the Bishop
Trust for London (CCFS) For the support of parishes in the Metropolitan Police area.
Monies are applied to support specific qualifying projects where
expenditure occurs irregularly.
Bishop’s Harvest Appeal Monies raised as part of the Bishop’s annual appeal
Church Repairs Fund Monies for the repair of churches within the Diocese
Parker Fund Assistance to clergy as directed by the Bishop
Archdeacons’ Discretionary Assistance to clergy as directed by the Archdeacons
Yapp Fund Towards the Common Fund of the Board, to support the payment
of stipends
Historic Buildings Fund This is a jointly funded project with Historic England to build the
capacity of local communities to conserve and develop the use of
their church buildings. Grants are received once a year, whilst
expenditure supported by those grants occurs evenly throughout
the year.
Ordinands’ Training Fund This fund receives block grants from the Archbishops’ Council
Ministry Division intended to meet the tuition costs for Ordinands
at accredited Training institutions. Grants are received termly, to
meet termly payments throughout the year.
Grimthorpe Fund Monies applied for the repair of churches within the
Archdeaconries of Hertford and St Albans.
Other restricted funds Sundry specific purposes

66 Annual Report and Consolidated Financial Statements

25 Unrestricted funds

The unrestricted income funds of the group and the charity, including designated funds which have been set aside by the Board for specific purposes, are as follows:

At 1 At 31
January Gains and December
2025
Income		 Expenditure losses Transfers 2025
Group and Charity £’000
£’000		 £’000 £’000 £’000 £’000
Common Fund 5,215
15,128		 (17,502) (60) 2,486 5,267
Other unrestricted funds:
Tangible fixed assets fund 11,741
1		 - - 2,985 14,727
Property ring-fenced fund 6,292
171		 (31) 16 (3,209) 3,239
Designated funds 2,404
842		 (641) (7) 477 3,075
20,437
1,014		 (672) 9 253 21,041
Unrestricted funds 25,652
16,142		 (18,174) (51) 2,739 26,308
Elimination of Intra group profit (154)
-		 43 - - (111)
25,498
16,142		 (18,131) (51) 2,739 26,197
Non-charitable trading 4,257
13,557		 (9,154) - (3,000) 5,660
29,755
29,698		 (27,285) (51) (261) 31,856
At 1 Gains, At 31
January losses and December
2024 Income Expenditure transfers 2024
Group and Charity £’000 £’000 £’000 £’000 £’000
Common Fund 4,651 15.142 (16,690) 2,112 5,215
Other restricted funds:
Tangible fixed assets fund 11,540 198 3 - 11,741
Property ring-fenced fund 6,044 203 (267) 312 6,292
Designated funds 1,971 23 (232) 642 2,404
Pastoral Account 767 99 (73) (793) -
20,322 523 (569) 161 20,437
Unrestricted funds 24,973 15,665 (17,259) 2,273 25,652
Elimination of Intra group profit (156) - 2 - (154)
24,817 15,665 (17,257) 2,273 25,498
Non-charitable trading 4,427 451 (418) (203) 4,257
29,244 16,116 (17,675) 2,070 29,755

67 Annual Report and Consolidated Financial Statements

2025 2024
Common Fund reconciliation £’000 £’000 £’000 £’000
Total income in year 15,129 15,142
Total expenditure in a year (17,502) (16,690)
Deficit/surplus for the year before transfers (2,373) (1,548)
Total Return (see note 15)
Investment income received from Endowment funds
in year 1,717 1,729
Additional income due to adoption of total return 1,059 985
2,776 2,624
Other adjustments (transfers between funds see
note 21)
Transfer to designated funds agreed by Board (500) (500)
Transfer of interest from Property Ring-Fenced Fund
223
Other net grant transfers (13) (10)
(290) (510)
Revaluation of investments (60) (2)
Net movement on Common Fund 53 564
Balance at 1 January 2025 5,215 4,651
Balance at 31 December 2025 5,267 5,215

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 to operate effectively and the ability to finance short-term deficits. The aim is for the fund to be represented, in part, by a minimum cash balance sufficient to meet stipend and lay staff salary payments as they fall due. The need for such working capital is taken into account when setting 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 to provide the St Albans Diocesan Board of Finance with the assets needed to carry out its objectives including statutory requirements, administration of funds and housing of non-beneficed clergy.

68 Annual Report and Consolidated Financial Statements

Property Ring-Fenced fund

This was set up using the residual fuds due to the Board following the sale of parsonage houses and initially transferred to the Pastoral Account (see Note 22). It is a designated fund and so the Diocesan Board of Finance can use the income generated and assets held according to need. However, it is primarily intended to relieve pressure on the costs for maintaining and improving parsonage houses.

Special Designated Funds

These are funds which the Board has set aside for specific sundry purposes falling within the normal activities of the Diocese.

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. Its uses include:

26 St Albans Diocesan Property Company Limited

On 18 February 2014, St Albans Diocesan Property Company Limited was established as a 100% owned subsidiary of the St Albans Diocesan Board of Finance. Its current directors at 31 December 2025 are Mr A C Brown, Dr T Coulson, and The Ven D Middlebrook, who are also members and directors of the Board of Finance and, Mr C G Bird, and Viscount Knutsford who are independent directors. Mr C B Gage and Mr J Watkiss resigned as Directors during the year.

St Albans Diocesan Property Company Limited is part of a VAT Group registration with the St Albans Diocesan Board of Finance.

On 10 April 2014, the St Albans Diocesan Board of Finance transferred a parcel of its land with planning potential to St Albans Diocesan Property Company Limited. The land was classified initially as investment land as it was not known whether 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 company has signed an agreement with the owners and co-developers of adjacent land to 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 costs are included in the financial statements of the company and these consolidated financial statements. Tax has been calculated on the profits and is included in the financial statements.

69 Annual Report and Consolidated Financial Statements

A summary of the company’s statement of income and retained earnings for the year and balance sheet at 31 December 2025 is given below. Audited financial statements will be filed with the Registrar of Companies. The company’s registered office is Holywell Lodge, 41 Holywell Hill, St Albans, Herts, AL1 1HE.

2025 2024
£’000 £’000
Income and expenditure
Turnover 13,467 393
Cost of sales (9,036) (255)
Operating costs (35) (46)
Interest received 82 58
Taxation credit 22 139
Profit for the year 4,500 289
Charitable Donation to Parent Company (3,000) -
Profit after charitable donation 1,500 289
2025
£’000
2024
£’000
Balance sheet
Current assets 17,542
16,024
Creditors: amounts falling due within one year* (3,968)
3,950)
Total net assets 13,574
12,074
*as restated
2025
£’000
2024
£’000
Capital and reserves
Called up share capital 7,700
7,700
Profit and loss account 5,874
4,374
Total shareholder’s funds – equity interests 13,574
12,074

27 St Albans Diocesan Property Company (Chesham) Limited

On 22 March 2024 the charity established a further wholly owned subsidiary company, St Albans Diocesan Property Company (Chesham) Limited, investing £1,000 in the purchase of the subsidiary company’s called up share capital of 1,000 ordinary shares. A £3 million unsecured loan has been provided from the charity to St Albans Diocesan Property Company (Chesham) Limited, at an interest rate of 3.5%, charged in line with the Board’s total return policy. Its current directors at 31 December 2025 are Mr A C Brown and Dr T Coulson, who are also members and directors of the Board of Finance and, Mr C G Bird, and Viscount H Knutsford who are independent directors.

The intention is to develop the land and buildings in two stages, starting with the farm and residential buildings. This will generate sufficient return to cover the cost of the purchase. The second stage involves development of the land holdings, which fully will recoup the Board’s investment in the glebe farmland.

70 Annual Report and Consolidated Financial Statements

2025 2024
£’000 £’000
Income and expenditure
Turnover - -
Cost of sales - -
Operating costs (105) (44)
Interest received 9 -
Interest payable (105) (73)
Taxation - -
(Loss) for the period (201) (117)
2025 2024
£’000 £’000
Balance sheet
Assets 2,995 3,078
Creditors: amounts falling due within one year (3,312) (3,194)
Creditors: amounts falling due after one year - -
Total net assets (317) (116)
2025 2024
£’000 £’000
Capital and reserves
Called up share capital 1 1
Profit and loss account (318) (117)
Total shareholder’s funds – equity interests (317) (116)

71 Annual Report and Consolidated Financial Statements

28 Custodian funds

As at 31 December 2025 the St Albans Diocesan Board of Finance held funds on behalf of parishes, church schools and general trust funds within the Diocese with a market value of approximately £40.6m (2024 – £42.3m) 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 Investment Management Limited. At all times, funds held by the charity as Custodian Trustee are segregated clearly from those belonging to the charity itself.

29 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.

30 Related party transactions

Hockerill Education Foundation – registered charity number 311018

Two (2024 - Three) members of the Board and one key member of staff are trustees of the Hockerill Educational Foundation. In 2025 the St Albans Diocesan Board of Finance received educational grants from the Foundation totalling £120k (2024 – £110k) and £95k (2024 – £89k) was spent during the year on educational activities.

Youthscape – registered charity number 1081754

One key member of staff (2024 – one) is a trustee of Youthscape. In 2025 the St Albans Diocesan Board of Finance made payments to Youthscape totalling £55k (2024 – £20k), for grants supporting work with young people across the Diocese.

City Church Fund – registered charity number 205629-2

One member of the Board (2024 – one) is a trustee of the City Church Fund. In 2025 the St Albans Diocesan Board of Finance received grants from City Church Fund totalling £104k (2024 – £111k), supporting churches within the designated area.

University of Bedford Enterprises Limited (UBEL) – registered company number 02460429 One member of the Board (2024 – one) is a governor of the University of Bedford, which wholly owns UBEL. In 2025 the St Albans Diocesan Board of Finance made payments to UBEL totalling £16k (2024 – £18k), for use of premises for synod.

University of Bedfordshire Ecumenical Chaplaincy Trust (UBECT) – registered charity number 1119414

One member of the Board (2024 – one) is a trustee of UBECT, which wholly owns UBEL. In 2025 the St Albans Diocesan Board of Finance made payments of £4k from UBECT as a contribution to the Chaplaincy work at the University of Bedford.

72 Annual Report and Consolidated Financial Statements

Cathedral and Abbey Church of St Albans – registered charity number 1207312

One member of the Board (2024 – one) and one member of Bishop’s Council are key members of the Cathedral. In 2025 the St Albans Diocesan Board of Finance made payments to the Cathedral totalling £18k (2024 – £19k), for grants and general educative purposes and received £0.3k (2024 - £8k) for advertising.

Jane Cart Trust – registered charity number 200166

One member of the Board (2024 – two) and one member of Bishop’s Council are trustees of the Jane Cart Trust. In 2025 the St Albans Diocesan Board of Finance received a grant contributing to the year of spiritual wellbeing and renewal (2024 – one grant for Net Carbon Zero).

St Albans Diocesan Readers’ Association

One member of Bishop’s Council (2024 – one) is treasurer of the Diocesan Readers’ Association. In 2025 the St Albans Diocesan Board of Finance made a payment of £4k (2024 - £4k) to fund the activities of the Association for readers across the Diocese of St Albans.

Donations from Board members

No donations were received from Board members in the year (2024 – none).

31 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 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 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 it has certain functions and responsibilities imposed by statute (the Diocesan Boards of Education Measure 1991 (as amended 2006) and reports directly to the Diocesan Synod, it has no legal personality separate from the Board. A key function of the DBE is to assist in the promotion of education in the Diocese, such education being consistent with the faith and practice 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 of The Academies Act 2010, the DBE established The Diocese of St Albans Educational Trust, a company limited by guarantee (Company Registration No. 08223185 (England and Wales) to assist Church of England Academy Trusts 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.

73 Annual Report and Consolidated Financial Statements

In response to the Education and Adoption Bill 2015, the Diocese of St Albans Multi Academy Trust (DSAMAT) was incorporated on 27 October 2016 as a company limited by guarantee (Company Registration No. 10449374). The five members of the Multi Academy Trust are appointed 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 dayto-day management. The Multi Academy Trust has been established to provide for schools within the Diocese requiring rapid improvement having been placed in Special Measures 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.

The Board has not consolidated the DSAMAT accounts into its own as it does not consider itself to be a controlling entity. The Board’s appointment of DSAMAT members, who in turn appoint the Directors, is highly disconnected from practical financial and operational matters. The Board does not make appointments in order to derive benefit for itself: rather its appointments are to help to support DSAMAT to benefit its beneficiaries and help it to achieve its separate purposes. The DBE makes no strategic decisions for DSAMAT: it does not direct expenditure or funding, nor does it approve or set budgets.

During the year, there have continued to be a limited number of transactions between the Multi Academy Trust and the Board in respect of a recharge of staff salaries by the Board. The amounts involved are not material to these financial statements.

32 Pension commitments

Lay workers scheme

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

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

  3. a. a deferred annuity section known as Pension Builder Classic, and,

  4. b. a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme

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

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

74 Annual Report and Consolidated Financial Statements

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

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the General Reserve, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2025: nil, 2024: nil) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of nil for 2025 (2024: nil).

If, following an actuarial valuation of the General Reserve, there is a surplus or deficit in that reserve, further transfers may be made from the General Reserve to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board having taken advice from the Actuary.

A valuation of DBS is carried out once every three years. At the most recent valuation at 31 December 2022 there was a surplus of £73.6m.

The next actuarial valuation is due at 31 December 2025.

In 2024, the Board entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF. It was also agreed that some employers could use assets in the DBS in lieu of contributions to Pension Builder Classic and/or Pension Builder 2014. Over the year to 31 December 2025, £331,815 of surplus assets from the DBS has been used to fund contributions in Pensions Builder 2014 for the Board.

The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2023 or 31 December 2024.

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

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.

75 Annual Report and Consolidated Financial Statements

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at 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 (2025: nil, 2024: nil).

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

For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2026, the Board chose to grant a discretionary bonus of 10% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 1997 service so that the pension increase was also 10% (where usually it would be calculated based on inflation up to an annual cap of 5% for pensions in payment in respect of service prior to April 2006 and 2.5% for pensions in payment in respect of service post April 2006). This followed improvements in the funding position over 2025. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The Church of England Pensions Board has agreed that some employers could use assets in the DBS of the CWPF in lieu of contributions to Pension Builder Classic and/or Pension Builder 2014. You will see this information on your DBS statement which will be sent separately.

The next valuation is being carried out as at 31 December 2025.

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

Clergy scheme

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

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

76 Annual Report and Consolidated Financial Statements

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2025 - £1,340k; 2024 - £1,488k), plus any figures arising from contributions in respect of the Scheme’s deficit.

A valuation of the Scheme is carried out once every three years. The 2021 valuation showed the Scheme to be fully funded. The most recent Scheme valuation completed was carried out at as 31 December 2024, and also showed the Scheme to be fully funded; as such in 2025, the deficit contributions paid were £0 (2024: £0).

The December 2024 valuation revealed a surplus of £560m, based on assets of £2,570m and a funding target of £2,010m, assessed using the following assumptions:

principle in July 2025 (and confirmed in February 2026).

The movement in the balance sheet liability over 2024 and over 2025 is set out in the table below.

2025 2024
£’000 £’000
Balance sheet liability at 1 January
Deficit contribution paid - -
Interest cost (recognised in SOFA) - -
Remaining change to the balance sheet liability* (recognised in SOFA) - -
Balance sheet liability at 31 December
 -
 -

year-ends.

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.

77 Annual Report and Consolidated Financial Statements

33 Prior year adjustment

The accounts for 2024 double-counted land held in the St Albans Diocesan Property Company (Chesham) Limited by also including it in the accounts of the parent company charity. This resulted in investment assets and unrealised gains on investment being overstated by £2,595k. These entries have been corrected in this set of accounts, leading to a change to the opening balances as at 1 January 2025. Restated figures are highlighted in the accounts. The impact on the key figures affected are shown in the following tables.

Unrealised Consolidated
gains on fund
Investments investments balances
Group £’000 £’000 £’000
As per 2024 Published Accounts 100,789 6,027 214,603
Adjustment (as explained above) (2,595) (2,595) (2,595)
Restated as per 2025 Published Accounts 98,194 3,432 212,008
Unrealised Consolidated
gains on fund
Investments investments balances
Charity £’000 £’000 £’000
As per 2024 Published Accounts 106,089 6,027 210,500
Adjustment (as explained above) (2,595) (2,595) (2,595)
Restated as per 2025 Published Accounts 103,494 3,432 207,905

34 Subsequent events

Since the end of 2025, there has been an exchange of two parcels of land, which will result in £3.3 million of receipts to during 2026. The monies actually received by the company will be net of the loan repayment on development costs and interest at the time the monies are transferred.

78 Annual Report and Consolidated Financial Statements