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2021-12-31-accounts

Chester Diocesan Board of Finance

Annual Report and Financial Statements 2021

Company limited by guarantee registered in England (no 7826)

Registered charity (no 248968)

Bankers

National Westminster Bank plc, 33 Eastgate Street, Chester, CH1 1LG Charity Bank, 182 High Street, Tonbridge, Kent, TN9 1BE.

Investment managers

CCLA Investment Management Limited, Senator House, 85 Queen Victoria Street, London, EC4V 4ET.

Solicitors

Aaron & Partners, Grosvenor Court, Foregate Street, Chester, CH1 1HG HMD Registry Services Ltd, 53 Park Mount Drive, Macclesfield, SK11 8NS

Auditors

haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG

Chester Diocesan Board of Finance Annual Report and Financial Statements 2021

Registered Office: Church House, 5500 Daresbury Park, Daresbury, Warrington WA4 4GE.

Telephone: (01928) 718 834

Chester Diocesan Board of Finance is the financial executive of the Church of England in the Diocese of Chester. It is a company limited by guarantee registered in England (no 00007826) and is a registered charity (no 248968).

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Index

Index Index Index
Trustees Report
Membership of the Board 2
Key Management Personnel 3
4
Who we are, what we do, and why we do it 6
Strategic report 8
Clergy 8
Assisting Parochial Church Councils 9
Outreach 10
Education 11
Ministry Development 11
Grants 12
Retreats and Christian conferences 12
Safeguarding 12
Coronavirus (COVID-19) 13
Financial Review 13
Going concern 15
2022 and beyond 16
Risk Management 16
Structure, governance, and management 18
28
30
Financial Statements
Statement of Financial Activities 35
Balance Sheet 36
Statement of Cash Flows 37
Notes to the accounts 38

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Chester Diocesan Board of Finance Year ended 31 December 2021

Membership of the Board

The trustees of the registered charity and the directors of the charitable company are the same. Trustees/directors served for the full year, except where shown.

President: Rt Revd Mark S A Tanner Bishop of Chester Chairman: Mr Ian N Scott-Dunn

Trustees/Directors:

Rt Revd Keith Sinclair Bishop of Birkenhead until 8[th] March 2021 Rt Revd Julie A Conalty Bishop of Birkenhead from 28[th] September 2021 Rt Revd Samuel J C Corley Bishop of Stockport from 28[th] September 2021 Ven Dr Michael R Gilbertson Archdeacon of Chester Ven Ian G Bishop Archdeacon of Macclesfield Very Revd Timothy R Stratford Dean of Chester Cathedral Canon Dr John P Mason Chairman, House of Laity Revd Dr Robert S Munro Chairman, House of Clergy Revd David T Brewster until 2 December 2021 Revd Christine J Broad until 2 December 2021 Revd Canon Elaine Chegwin Hall Revd Simon Drew Revd Canon David R Felix until 31 July 2021 Revd Andrew Quentin Greenhough Revd Dr Mark Hart until 2 December 2021 Revd Dr David J Page until 2 December 2021 Revd Christopher J P Hobbs until 2 December 2021 Revd Michael L Ridley Revd Michael I A Smith Revd Christina P Upton Revd Joshua C Askwith from 2 December 2021 Revd George T Crowder from 2 December 2021 Revd Simon R Gales from 2 December 2021 Revd Richard L Pennystan from 2 December 2021 Revd David A Vestergaard from 2 December 2021 Canon Elizabeth Renshaw MBE until 2 December 2021 Dr J Graham Campbell Dr Alan Dowen Mr John J C Freeman Miss Fiona Goode until 2 December 2021 Mrs Esme A Hammer Mr David G Lowcock Mr John R Scrivener until 2 December 2021 Ms Julie H Withers Dr Peter J Marshall from 2 December 2021 Mr Peter S Ball-Foster from 2 December 2021 Dr Christine E Wetherell from 2 December 2021 John S Haslam from 2 December 2021

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Chester Diocesan Board of Finance Year ended 31 December 2021

Key Management Personnel

Mr George Colville Mrs Liz Geddes

Diocesan Secretary Director of Human Resources and Deputy Diocesan Secretary Director of Ministry from 13[[th]] September 2021[[st]] July 2021 Diocesan Safeguarding Adviser Director of Communications Director of Outreach from 18[[th]] January 2021 Head of Finance

Revd Simon Chesters Director of Ministry from 13[[th]] Revd Canon Dr Christopher Burkett Director of Ministry until 31[[st]] July 2021 Ms Pauline Butterfield Diocesan Safeguarding Adviser Mr James Butterworth Director of Communications Revd Peter Froggatt Director of Outreach from 18[[th]] Mr Nigel Strange Head of Finance

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Chester Diocesan Board of Finance Year ended 31 December 2021

Statement

Finance for its 150[th] year. T maintain and promote the spiritual teaching of the Church of England in the Diocese the parishes of the diocese to continue to operate effectively, through collecting contributions from the parishes, paying and housing the clergy, and through providing a number of additional services.

2021 saw the continuation of a period of change on many fronts. Along with society generally, the diocese started to emerge from the sequence of lockdowns and restrictions that characterised the pandemic. Other uncertainties are now arising, not least, issues around the cost of living, which affects clergy, parishes and parishioners alike.

Bishop Keith Sinclair retired as Bishop of Birkenhead in March 2021, a post he had occupied since 2007. Before retirement, he was also acting Bishop of Chester, until the appointment of Bishop Mark Tanner. The parishes and staff of the diocese are grateful for his huge contribution over that time.

Following the announcement that Mark Tanner would become the new Bishop of Chester and the commencement of his public ministry in 2020, he was enthroned at Chester Cathedral in June 2021. This paved the way for the appointment of two new suffragan bishops.

Julie Conalty became Bishop of Birkenhead, having previously been Archdeacon of

Sam Corley became the Bishop of Stockport, having previously been Rector of the parish of Leeds City.

Together, they complete the team of three new bishops for the Diocese and we look

Over the period of lockdown restrictions, we were inevitably forced online and into the homes of members of staff. A partial return to normal office working has resumed, and possible hybrid working is being considered.

I thank George Colville, Diocesan Secretary and the staff of the DBF, who provide quality support employment for the work they have done and welcome all the new members to the - committee members for their work throughout the year.

The numbers in the accounts look quite different this year. This is due mainly to a change in accounting policy, whereby the value of benefice property, that is, vicarages that house parish clergy, is now shown on the balance sheet of the DBF. This brings Chester into line with the accounting policy adopted in other dioceses.

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Chester Diocesan Board of Finance Year ended 31 December 2021

anticipated for the year, for reasons including continuing healthier than anticipated parish share collection, for which we are very grateful to parishes who have been able to support our mission in this way.

The economic effect of the coronavirus pandemic and more recently, the cost of living crisis, on the DBF, parishes and the UK economy more widely, means that plans for the future will be continuously kept under review.

Investments showed continued gains, though these have moderated since the year end. Most of these investments are endowment funds whose primary function is to generate income for stipends, so maintenance of dividends continues to be of higher importance than end of year valuations. In addition, the increase in cash holdings over the year is the result of the sale of a small number of former vicarages without a corresponding purchase of new vicarages.

Our priority is to use our resources wisely in the pursuit of growing God's kingdom throughout the Chester Diocese and beyond. We pray that God's Holy Spirit may guide and inspire us all.

Ian N Scott-Dunn Chairman

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Chester Diocesan Board of Finance Year ended 31 December 2021

Trustees Report

Who we are, what we do and why we do it

Who we are

The parish is the core unit of Church of England activity; Chester Diocesan Board of Finance provides a financial executive and support function to enable parishes to operate effectively.

What we do

God has given us a Christian framework for living which benefits the members of the churches in the Diocese and the wider public generally. We provide facilities for public worship, pastoral care, and spiritual, moral and intellectual development; we promote Christian values and service by members of the Church in and to their communities, to the benefit of individuals and society. In practice, this means collecting contributions from parishes, paying and housing the clergy, and delivering diocese-wide services and projects.

Why we do it

maintain and promote the spiritual teaching of the Christian message living it and telling people about it. Staff working for the DBF also believe this or are in sympathy with it.

How our activities deliver public benefit

With further details provided below, our main activities aim to deliver public benefit in the following ways:

The majority of the comprises Cheshire, the Wirral, and parts of Greater Manchester.

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Chester Diocesan Board of Finance Year ended 31 December 2021

Trustees Report

Who benefits from our services?

The DBF is a public benefit entity. The trustees confirm that they have complied with the duty of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. We also take account of the Charity Governance Code (see page 27) in ensuring that the charity is effective.

We aim to make our services open to as wide a section of the public as possible. For example:

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Strategic Report

Clergy

Provision of clergy

Although the DBF does not employ the parish clergy, it is responsible for training them, paying them, and paying into their pension fund. With approximately 227 trained stipendiary clergy including Archdeacons and clergy who occupy a house and receive a reduced stipend, 46 of whom are curates, this responsibility is by far its largest financial commitment. It can only be met if the parishes pay their Parish Share. Stipend and pension levels are set nationally with some slight regional flexibility.

Some clergy are not paid stipends. These include self-supporting ministers, ministers in secular employment, and retired clergy. They give excellent service, but generally have less time to offer and in most cases are not asked to take charge of a parish.

Almost all clergy in the Diocese are paid under the terms of Common Tenure, with only a few retaining their freehold. All new posts are now appointed under Common Tenure.

In recent years the DBF has expanded the number of training curates, to respond to the needs of maintaining clergy levels into the future.

We must ensure that we can continue to raise the money to keep as many as possible in post, for the sake of the Church, the Gospel, and the people and communities of the Diocese.

We are pleased that God has continued to call people to serve in the Diocese and we continue to be able to appoint good clergy to benefices to fill vacancies as they arise.

Provision of clergy housing

The DBF is responsible for maintaining and insuring clergy houses. This includes carrying out repairs and maintenance works as they arise, and as highlighted in 5- yearly inspections. Major renovation works are usually carried out during vacancies. There is also a phased program of improving the overall standard of housing within the constraints of available funding.

Improvement projects including the replacement of a number of kitchens, bathrooms and boilers continued. A number of window replacements were also completed including at Wallasey St Hilary. Some of the improvement work has been

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

funded by a grant received from Benefact Trust (formerly Allchurches Trust), the owner of Ecclesiastical Insurance.

Former vicarages at Holmes Chapel, Wallasey St Nicholas, Wistaston (Crewe) and Congleton St Peter were sold during the year.

The existing vicarage at Prestbury was demolished, in preparation for the construction of replacement vicarage together with another property to be sold by the developer.

Chaplains

The DBF also supports chaplains who provide a strong Christian influence in hospitals, hospices, schools, farming, prisons, local industry, Manchester Airport and Chester University.

Bishops

Bishops are the chief pastors of the Diocese. They provide overall focus and lead the mission of the Diocese.

Keith Sinclair, Bishop of Birkenhead, retired in March 2021 a post he had occupied since 2007. Latterly, he was acting Bishop of Chester until the appointment of Mark Tanner.

Following the announcement that Mark Tanner would become the new Bishop of Chester and the commencement of his public ministry in 2020, he was enthroned at Chester Cathedral in June 2021. The diocese welcomed two new suffragan bishops who were installed at the Cathedral in September. Julie Conalty became Bishop of Birkenhead, and Sam Corley, became Bishop of Stockport.

Archdeacons

Archdeacons have the role of pastoral care of the clergy and oversight of church buildings and vicarages. There are two in Chester Diocese: The Ven Dr Michael Gilbertson, Archdeacon of Chester, and the Ven Ian Bishop, Archdeacon of Macclesfield. With the arrival of new bishops and the upheaval of the last few years, they have been pivotal to the functioning of the diocese.

Assisting Parochial Church Councils

The DBF has continued to provide support to parishes in care and development of their church buildings. Much of this support has been online during the pandemic; as restrictions have been lifted, this support has returned to being more face to face.

Support has continued to be given to parishes in care and development of their church buildings through the work of the Diocesan Advisory Committee.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Outreach

The DBF aims to inspire and serve churches seeking spiritual and numerical growth. Its work involves parishes in the diocese, and links with the Anglican church in Melanesia and the Democratic Republic of Congo.

The DBF has been guided by the Anglican approach:-

  1. To proclaim the Good News of the Kingdom

  2. To teach, baptise and nurture new believers

  3. To respond to human need by loving service

  4. To transform unjust structures of society, to challenge violence of every kind and pursue peace and reconciliation

  5. To strive to safeguard the integrity of creation, and sustain and renew the life of the earth

Acre, helped 25 parishes to make the

most of their churchyards, socially and ecologically.

Support continues to be provided to individual clergy, clergy chapters, and parishes. We an introduction to becoming more intentional in mission and church life generally. Churches have been encouraged and assisted to use Leading your Church into Growth Jesus Shaped People as ways of becoming more intentional in evangelism and in discipleship.

Support has been provided to parishes about Christian giving, Gift Aid, digital giving,

Work of the Disability Forum continued. A series of webinars helped churches respond to the needs of people with disabilities. Disability audits resumed as parishes reopened and people looked with fresh eyes at their facilities.

Work of the Diocesan Counselling Service continued, returning to more in-person counselling as restrictions were lifted. The increased pressures of the pandemic mean that services are in high demand.

The Mental Health Forum focussed on recovery from the pandemic and ran a day conference in October, with keynote speakers the Revd Dr Carla Grosch-Miller and the Revd Lesley Currie.

Support has been given to those who minister with children and young people in parishes, including in conjunction with the Living in Love and Faith process. Training included ministering with children and young people with autism, making the most of school assemblies, and mental health first aid and recruiting leaders.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Using Buildings for Mission

The DBF continued to assist parishes with developing and improving their church buildings, halls and grounds, funded by grants from Historic England, and more recently, Benefact Trust (formerly Allchurches Trust), the owners of Ecclesiastical Insurance. Areas of support included developing a Godly vision for the church building, project development and fundraising.

At the end of the year, Emily Allen left her role as Buildings Adviser. She had worked in the diocese for seven years and her expertise, thoroughness and commitment to mission in local churches were greatly and widely appreciated. Through 2021 she helped churches access grants from a variety of funders, over £230,000 in total; she provided advice on project management; and formed and sustained the Cafes in Churches and the Houses of Prayer Groups. In this, and much more, she made sure that churches saw their buildings through a missional lens. We hold this principle in mind as we look for someone to continue the excellent work that she has done.

Education

The DBF works closely with and provides financial and other support to Chester Diocesan Board of Education (DBE) in its work. Together with the DBE the Board seeks to ensure that schools have high standards, are distinctively Christian, and support the More details can be found in the DBE annual report. The DBF also provides Chester Diocesan Academies Trust with office accommodation and IT services.

Ministry Development

The DBF administers vocational discernment, selection, initial training, and in-service training for lay and ordained licensed ministries.

In July 2021 11 deacons and 21 priests were ordained. In October 9 Readers, one Pastoral Worker and two lay pioneer ministers were licensed. Numbers in training and exploring calling remain encouraging.

Emmanuel Theological College started, superseding the previous regional training partners, All Saints Centre for Mission and Ministry, and St Mellitus Northwest. A significant number of ordinands train with Emmanuel, alongside residential training at other colleges around the country.

Numbers in training for licenced lay ministry readers and pastoral workers remain healthy, as does participation in the Foundations for Ministry course.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Support for lay and ordained ministers continues. Continuing Ministerial Development and Ministerial Development Review, online for much of the pandemic, are returning to more face-to-face working. Working across departments continues, on such projects as Everyday Faith.

Grants

The DBF makes certain grants to support clergy and parishes in their work. A focus in recent years has been a concentration on projects which promote mission and development.

The Diocese of Chester is also a part of the wider Church of England. In this capacity, the DBF contributes funds to the national church to enable it to provide functions that are better carried out at a national level. Examples include funding for theological views in wider society, and the provision of specialist advice and support.

Retreats and Christian conferences

Foxhill is the centre of prayer, discipleship and mission for the Diocese of Chester.

As 2021 started, the conference centre remained closed. During the closure, some of the staff were furloughed.

Safeguarding

Safeguarding advice and expertise continued to be a vital element of support offered to parishes.

The independent report allegations concerning the late Hubert Victor Whitsey, former Bishop of Chester was republished following the resolution of a legal issue. The review was carried out by His Hon David Pearl and independent safeguarding consultant Kate Wood.

Following a review in 2018 of the first Church of England Past Cases Review, a second

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

review has been taking place in all the Dioceses. In Chester, most of the work, undertaken by two independent reviewers, both former senior police officers, was completed during the year. Since the year end, review work completed in Chester Diocese has been submitted to the national church, and the resulting report is expected to be published during 2022.

Following a review of safeguarding provision in the Diocese, it was concluded that the safeguarding staff needed to be expanded, to cope with the growing workload. An additional Assistant Diocesan Safeguarding Adviser has since been appointed.

Coronavirus (COVID-19)

Restrictions remained in place for much of 2021. Parish churches were allowed to reopen to a limited extent, with restrictions on numbers and what activities could take place. The DBF assisted in ensuring that parishes had access to guidance from both the government and the national church. There was also a limited return to working at Church House, Daresbury. A full lifting of restrictions was not in place until after the end of the year.

Financial Review

Changes to accounting policies

Following a change of auditor and subsequent review of accounting policies, several policies have been changed, and the comparative figures quoted below are restated to take account of those changes.

The accounting policies changed are as follows: -

Accounting treatment of Parsonages

Following a change of auditor and a review of accounting policies, the directors have included benefice property, that is parsonages for the housing of parish clergy, in fixed assets at fair value, where previously they were not. Under s.8 of the Church Property Measure 2018, the DBF may, subject to approval by the Church Commissioners, make a determination that a parsonage house and/or parsonage land which is no longer s.13 of the Church Property Measure 2018, the proceeds of the sale of a parsonage house are paid to the Parsonages Board for the diocese, which will then apply the monies to a variety of purposes with the ultimate application of monies being to credit the diocesan Pastoral Account, to the extent that these are not required for the purchase or improvement of other parsonage houses. The directors therefore conclude that the DBF controls the parsonage houses, by virtue of its ability to make determinations under s.8, and that it is probable that economic benefit associated with the parsonage houses will flow to the DBF, because the ultimate application of the sale proceeds is to credit one or more of the funds of the DBF. The assets are held on trust,

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

so they have recognised the assets as an expendable endowment fund.

Parsonage building funds, which typically arise on the sale of a benefice house in advance of its replacement, are also included within the same expendable endowment fund.

Depreciation

Depreciation is no longer provided on buildings as any provision would not be material due to the long expected remaining useful economic lives, and because expected residual values are not materially less than carrying value. The DBF has a policy of regular inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Measure 1972. Disposals of properties tend to occur well before the end of their economic lives, and disposal proceeds are usually not less than carrying value. Impairment reviews are undertaken to ensure that the carrying value is not more than the recoverable amount.

Diocesan office at Daresbury Park

For consistency, the Diocesan office at Daresbury Park is now held in the balance sheet at valuation, as with all other property. It was previously held at cost less accumulated depreciation.

Results for the year

Net income after investment gains amounted to £1,497k (2020 net expenditure after investment gains £280k restated). Investments continued to gain in value, £1,633k (2020 £482k), though these have since fallen back a little in 2022. Benefice properties continued to rise in value, accounting for the majority of the gain on fixed assets, £12,108k (2020 £7,771k restated).

Contributions received from parishes stabilised as the Diocese emerged from the pandemic, £10.8m (2020 £10.8m), though this remains below pre-pandemic levels. The parish share collection rate remained at approximately 90%.

There were several sales of former parsonage houses during the year, which accounts for the majority of the rise in cash over the period. The Board has a policy of recycling funds raised from the sale of parsonage houses to fund new parsonage houses and improvements to existing houses, though on occasions, surpluses on the sale and replacement of parsonages are also being used to support day to day activities.

The result for the year was also supported by a sustainability funding from the church commissioners of £500k. In addition to this, the DBF received a grant from Benefact Trust (formerly Allchurches Trust), which has been applied to preparations for the 2022 Clergy Conference, continued support to parishes in respect of using church buildings for mission, and the provision of improved clergy housing.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

stipends, national insurance, pension contributions, housing maintenance and ordination training, amounting to £10.4m (2020 £10.2m).

Since 2007, parochial contributions have been requested under a parish share system based on number of allocated clergy and a socio-economic factor; this approach is intended to foster mission and growth.

Following changes to accounting policy, and the inclusion of benefice property on the balance sheet, all property has been subject to at least a desktop review of valuation. The exercise has indicated significant gains in values during the year.

The return on holdings in the CBF Church of England Investment Fund was a 14.4% gain in capital value together with a 2.9% income return. The return on invested cash rose marginally from 0.15% at the start of the year to 0.2% at the end, though it has risen further since.

The majority of the investment assets are held by endowment funds and are therefore not available for current expenditure. In the short term at least, this makes the income from those investments more important than their current capital value. This has limited the effect of the fluctuations in capital value on day-to-day operations. However, the DBF is conscious that continuing adverse economic conditions may have an impact on parochial contributions, parochial fees, rates of return on cash, and the ability to buy and sell parsonages and other property.

A plan is in place to fund the deficit on the Church of England Funded Pensions Scheme for stipendiary clergy. The balance outstanding on this plan is due to clear during 2022.

Going concern

The trustees consider that there is a reasonable expectation that the DBF has adequate resources to continue in operational existence for the foreseeable future, and as a result, the trustees continue to adopt the going concern basis in preparing the accounts. The trustees did not consider there to be any material uncertainty relating to events or conditions that individually or collectively may cast significant doubt on the

In more normal times, the basis of this approach would include budgets and forecasts for the following year. This year, as economies and organisations adapt to the effect of the coronavirus pandemic, this has been supplemented by reviewing other potential sources of funds.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

2022 and beyond

The purpose of Chester DBF of the parishes of the diocese.

Challenges for the next few years include: -

While the DBF faces challenges, it is helped by many positives, not least including historically high parish share contribution rates, together with good relationships with parishes in the Diocese.

Risk Management

The Board reviews a register of risks on an ongoing basis, reviewing the combination of likelihood and likely impact of perceived risks.

The Board considers that its principal risks at present are: -

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Additionally, there remains some risk relating to ability to continue to fund increasing stipends, housing, salary and pensions costs if voluntary contributions from parishes fail to come in. The largest source of funding is contributions of Parish Share made by parishes. Arrears of parish share are reviewed monthly, and in some senses these reviews fulfil a similar role to monthly management accounts in more commercial enterprises. The Finance and Scrutiny Committee meets five times a year and oversees and discusses these reviews at each meeting. In addition, it keeps a watch on stipend costs, the cost of clergy housing repair, and staffing costs, these being the chief items of expenditure. At the current time, parish share collection rates continue to be healthy, so this is not an immediate concern.

Other risks are in the areas of key staff, reputation, and exposure to the consequences of decisions undertaken by separate but related church entities.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Structure, governance and management

The sections that follow describe the local and national structure of the Church of England and explain the role of Chester Diocesan Board of Finance in it.

Pastoral structure of the Church of England

The smallest pastoral area in the Church of England is the parish. Each parish usually has one parish church (although it may have more) and may also have one or more chapels of ease (often called daughter churches). A benefice is a parish or group of parishes served by an incumbent, and by carrying out the spiritual duties in the parishes of a benefice the incumbent is entitled to a stipend (like a salary) and parsonage house. A deanery is a group of parishes over which a rural dean has oversight and an archdeaconry is a group of deaneries for which an archdeacon is responsible. A diocese is the main administrative and pastoral area of the Church of England and contains two or more archdeaconries under the leadership of the Diocesan Bishop. A province covers the area of several dioceses under the oversight of its Archbishop.

Parochial Church Councils

The parochial church council (PCC) is the elected governing body of a parish. It is made up of the incumbent (who is the chairman) plus any other clergy licensed to the Benefice, the churchwardens, and several elected members plus members of Deanery, Diocesan and General Synods. All parishes have Deanery Synod representatives, and a smaller number have Diocesan or General Synod representatives. PCC s are independent charities, though all but the largest are currently excepted from registration with the Charity Commission. Their accounts can be obtained by contacting the relevant PCC treasurer and do not form part of these accounts. The Charities Act 2011 requires that PCCs with income of over £100,000 register with the Charity Commission.

Deanery Synods

Deanery Synods have two houses: laity, mainly people elected by their parishes, and clergy, mainly the beneficed and licensed clergy of the deanery. The role of a Deanery Synod is to consider matters concerning the Church of England; to bring together the views of the parishes of the deanery; to effect decisions made by the Diocesan Synod; to act as a channel of communication to express the views of the parish to Diocesan Synod; to respond to requests from General Synod; to raise with Diocesan Synod such matters as it considers appropriate; and to elect representatives of the deanery to the Diocesan Synod. Deanery Synods generally do not have significant financial transactions.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Diocesan Synod

The Diocesan Synod is the statutory governing body of a diocese. It is elected with representation from all parts of the Diocese and roughly equal numbers of clergy and lay people, who meet in Synod with the Bishops and Archdeacons. The role of Diocesan Synod is to consider matters concerning the Church of England and make provision for such matters in relation to its diocese; to act as a forum for discussion of Christian opinion on any matter of religious or public interest; to advise the Bishop on any matter on which he may consult it; to deal with matters referred by General Synod, and to refer matters to General Synod; and to make provision for the financing of the diocese, in its capacity as the Diocesan Board of Finance.

Chester Diocesan Synod met three times during 2021, remotely in March and June, and at Chester Cathedral in November. The usual business was completed at both meetings, including the receipt of the Annual Report and Financial Statements for the year ended 31 December 2020 and the approval of the 2021 budget. In June, Diocesan Synod received an update on Living in , a process of discernment and decision-making on questions of identity, sexuality, relationships and marriage. In November, the new suffragan bishops Julie Conalty and Sam Corley were introduced. Elections to Diocesan Synod also took place during the year.

National Church institutions

The General Synod is the legislative and decision-making body of the Church of England at national level. It makes decisions on doctrinal formulae, services and relations with other Churches. It passes Measures which, if accepted by Parliament, have the force of Acts of Parliament. The Synod contains three groups, or houses, of members: - the Houses of Bishops, Clergy and Laity. The Houses of Bishops and Clergy together form the two Convocations of the Province of Canterbury and the Province of York. The Convocations are older than Parliament and before their powers were vested in the General Synod they were responsible for making decisions on doctrine, services and relations with other churches. Elections to General Synod took place during the year.

is the Church of . It reports to General Synod.

Cooperating closely with , the Church Commissioners manage the historic assets of the Church of England, spending a significant part of their income on pensions for the parochial clergy, and providing selective financial support to Dioceses (this currently does not include Chester Diocese).

The financial transactions of General Synod, the Church Commissioners, and the Council do not form part of these accounts.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Chester Cathedral

Chester Cathedral is a separate charity. Copies of its accounts can be obtained from Chester Cathedral Office, 9 Abbey Square, Chester CH1 2HU.

Bishops

The costs of Episcopal administration (Diocesan and Suffragan Bishops) are met by the Church Commissioners.

The Diocese of Chester

The Diocese of Chester was created in 1541, following the dissolution of the Abbeys under Henry VIII, and assumed roughly its present dimensions in 1880. It covers an area of 1025 square miles, approximately the old Victorian County of Chester, including parts which subsequently became absorbed into Merseyside and Greater Manchester. The rivers Mersey and Tame approximately delineate the boundary with Liverpool and Manchester. There are areas of dense urban population, mainly in the north, stretching from Birkenhead to East Manchester. There are prosperous suburban regions of West and South Wirral, Chester and south of Manchester, with a mainly rural heartland, bounded by the Derbyshire Pennines and the Welsh Border. The overall population is around 1.6 million.

The Diocese is divided into two archdeaconries: Chester covering the western half and Macclesfield the eastern, each with nine deaneries. There are 265 parishes, about 100 of which can be described as rural. Compared with many dioceses, there are few teams, and few multi-parish benefices. There are approximately 236 stipendiary clergy. The ministry of Readers and Pastoral Workers is important, with over 400 licensed. The role of self-supporting ministers is increasing, with over 80 in post at present.

Roughly speaking, the Archdeaconry of Macclesfield covers that part of the diocese to the east of the M6, plus the area around Crewe and Nantwich. The Archdeaconry of Chester covers the rest of the diocese to the west of the M6. Each archdeaconry has a broad mix of urban and rural parishes. The Archdeacon of Chester lives in Chester, and the Archdeacon of Macclesfield lives in Congleton. Both work from Church House, Daresbury.

The financial affairs of the Diocese are conducted through two registered charities:Chester Diocesan Board of Finance (Registered charity number 248968), and Chester Diocesan Board of Education (Registered charity number 525790)

Chester Diocesan Board of Finance

Chester Diocesan Board of Finance (DBF), founded in 1873, is constituted in accordance with the provisions of the Diocesan Boards of Finance Measure 1925.

20

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

It is a charitable company limited by guarantee, registered in England and Wales, and governed by memorandum and articles of association.

Its principal activity is to maintain and promote the spiritual teaching of the Church of England in the Diocese of Chester. It acts as the financial executive of the Diocesan Synod and as custodian trustee for parochial trusts, and other related organisations. There have been no significant changes in activity during the year.

As a registered charity, the DBF is not liable for Corporation Tax on its charitable activities.

The DBF has the following statutory responsibilities: -

Charitable donations have been made as part of the normal expenditure of the DBF in the exercise of its objectives. No political donations have been made.

The DBF continues to undertake significant financial transactions with the Church of England Pensions Board and Parochial Church Councils (PCCs) within the Diocese of Chester. None of these is a connected charity in the sense defined by charity law.

Bis

21

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

In practice, Council undertakes actions in all the above areas, details of which are reported to Diocesan Synod on a regular basis.

Board of Directors of Chester Diocesan Board of Finance and are therefore responsible for ensuring that the activities of the DBF are conducted in accordance with Charity and Company Law. The Finance and Scrutiny Committee deals with all financial transactions of the DBF except for the:

The Human Resources Committee and the Staffing Review Committee oversee matters relating to clergy and lay conditions of service, staffing levels, and other matters.

Council receives detailed and regular reports on the activities of the various committees on the discharge of its responsibilities.

As employer of the staff responsible for the administrative work of the Diocese, the Board of the DBF records its sincere appreciation of the commitment and hard work of all concerned.

Subject to financial limits certain day-to-day decisions have been delegated to senior employees.

follows: -

Ex-officio members: the Bishop of the Diocese; other members of the House of Bishops, the Dean; the chairs of the House of Clergy and Laity; the Archdeacons; and the Chair of the Diocesan Board of Finance who is elected by the members.

Appointed members: one member appointed by each of: the members of the

22

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

DBF, the committee responsible for housing matters, and the Diocesan Advisory Committee for the Care of Churches.

Elected members: 5 clergy and 5 lay persons from each Archdeaconry elected by and from among the members of the appropriate House of that Archdeaconry.

Nominated members: not more than 2 persons nominated by the Bishop.

Co-opted members: not more than 2 persons co-opted by the Council.

d every 3 years, most recently in December 2021. The first meeting of the new council is a full day meeting and includes a training session on the duties and responsibilities of trustees and company directors, together with a description of the main activities of the charity. In addition, new members were made aware of the Charity Governance Code.

Diocesan Mission and Pastoral Committee

Each diocese has a statutory Diocesan Mission and Pastoral Committee (DMPC) appointed under section 2 of the Mission and Pastoral Measure 2011. The functions of the DMPC are as set out in section 3 of the Measure. The DMPC is also consulted appointed under the Dioceses, Pastoral and Mission Measure 2007 to replace former diocesan pastoral committees and diocesan redundant churches uses committees.

In the Diocese of Chester, the DMPC is undertaken by two archidiaconal mission and pastoral committees to The membership of the archidiaconal committees consists of the Suffragan Bishop, Archdeacon, Rural Deans and Lay Chairs (or other deanery synod nominees) of each Council (of which one is an elected member of the Council).

The archidiaconal committees agreed proposals for the suspension (or Dunham Massey St Margaret and St Mark, Over Tabley, St Paul Macclesfield, Crewe All Saints and St Paul with St Peter, Barthomley, Barnton Christ Church, Bickley, Leasowe St Chad, Backford and Capenhurst, St Thomas Liscard, Moulton St Stephen, Great Saughall, St Paul with St Luke Tranmere, Christ church Latchford

The archidiaconal committees agreed proposals that the suspension of the p Stalybridge St Paul, Partington

23

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

and Carrington, Bredbury St Barnabas, and Gee Cross Holy Trinity should be allowed to lapse.

The Chester Archidiaconal Mission and Pastoral Committee . A draft Pastoral Scheme for the benefices of St Paul with St Luke, Tranmere; Christ Church Higher Bebington; St Peter Rock Ferry; and St. Catherine Tranmere was published by the Church Commissioners. The committee agreed that the office of Priest-in-Charge of Christ Church Latchford; and St. James Latchford, should be an interim post.

The Macclesfield Archidiaconal Mission and Pastoral Committee had discussions on a number of possible pastoral reorganisations.

Both Archidiaconal Mission and Pastoral Committees discussed a series of reflections, prayers and stories to help people find and follow God in everyday life

Diocesan Closed Churches Uses Committee

The Diocesan Closed Churches Uses Committee (DCCUC) established in accordance with the Pastoral Measure 1983, has had as its sole duty the task of finding suitable alternative uses for redundant church buildings in the Diocese. The responsibilities of the DCCUC were subsumed within those of the Mission and Pastoral Committee, though the closed churches work has been undertaken by a sub-committee.

Christ Church, Crewe. The unlisted portion of the original church closed in 2014. Discussions are ongoing with Cheshire East with regards to possible uses and as part of a proposed wider redevelopment of the surrounding area. The building remains closed.

Discussions continued on the future of Christ Church Crewe, St John Altrincham, St Luke Dukinfield, St Johns Godley, and St Pauls Boughton. The former church site at St Luke, Winnington was sold with planning permission during the year.

The Dioceses of Manchester and Chester, Historic England and the Church Commissioners continue to which aims to find future uses for redundant historic churches in the two dioceses.

Custodian Trusteeship

The Board is Custodian Trustee for trust assets with a market value of approximately £6.4m at 31 December 2021 (£5.9m at 31 December 2020). Most of these trusts are held on behalf of Parishes whose charitable purposes in the advancement of religion are parallel to those of the DBF. The assets of the trusts are held separately from those of the Board. The DBF is responsible for their safe custody but has no

24

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

right of access to such holdings for its own purposes. The funds are invested in accordance with the wishes of the managing trustees of the trusts and are mainly invested in charity deposits and investment funds.

The Board also acts as custodian trustee for land and property trusts for parishes; in the main these are PCC (Parochial Church Council) properties such as church halls and houses. Deeds for these are held and recorded to ensure segregation of the assets from those directly belonging to the DBF.

When founded in the the University of Chester had close ties with the Anglican Church and was situated on land donated by the Dean and Chapter of e widened, it still provides training in theology and religious studies. The DBF remains custodian trustee for the University of Chester, holding property on its behalf. Investment Policy relatively low risk and in accordance with the Church of ethical investment policy. Subject to this, funds are invested as follows:

In carrying out this policy the Board has decided primarily to invest in the funds of the Central Board of Finance of the Church of England.

The Board also has a deposit with Charity Bank in support of the work it does in making available loans to churches and other charities in the Diocese.

Unrestricted funds

For many years considerable attention has been given by Chester DBF to the preparation of long-term financial estimates though this has become harder in the current environment where levels of uncertainty are increased. The major factors considered are the foreseeable decline in the number of stipendiary clergy available to the Diocese, the increased cost of the stipend, national insurance and pension contributions associated with employing even that reducing number. In order to cushion the blow that would otherwise have fallen on parishes, the Board has on occasions used accumulated reserves.

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Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Free unrestricted reserves (excluding fixed assets) represent approximately 3 months expenditure (£3.6m). Taking account of the voluntary nature of the bulk of Board believes this level of reserves is adequate to maintain cash flow. The Board intends to keep under close review the level of reserves required for cash flow purposes, particularly if there is any change in the timing or amount of expected parochial contributions.

Restricted funds

£8.7m (2020 £7.3m restated) are shown in note 20, together with an explanation of the purpose of those funds. The restatement of the prior year balance is as a result of the effect of changes in accounting policies on the Pastoral Account. The Board uses the pastoral account mainly to reinvest funds it receives from the sale of surplus parsonage houses for the improvement of other parsonage houses. Where not required for this purpose, it can be used to objects.

Endowment funds

Following a change in accounting policy, benefice property is now included on the balance sheet as an expendable endowment fund. t funds totalling £126m (2020 £114m restated) are shown in note 19 together with an explanation of the purpose of those funds. The gain in the year is due to a rise in benefice and glebe property values of £8.7m together with a gain of £360k in the capital value of investments. The major endowment funds generate income for stipends, and to make grants to retired clergy, widows/widowers and dependants.

Grant making policy

The charity makes a variety of grants to clergy, their dependants, parishes and organisations as need arises and in furtherance of its charitable objects.

Applications are invited from those eligible under the terms of the various grant making funds. Applications are considered on their merits by the trustees. Further details of the funds can be found later in these accounts. Details of the amounts and number of grants are given in note 7.

Related party

Chester Diocesan Board of Education acts as the education authority for the Church of England in the Diocese of Chester, and as such has objects that are closely aligned with those of the charity. Staff working for Chester Diocesan Board of Education are employed on joint contracts of employment and are processed

Key Management Personnel

The trustees have delegated much of the day to day running of the DBF to several

26

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

key management personnel. As with all staff employed by the DBF, their remuneration is set by reference to the Croner Job Evaluation Scheme for the Church of England, with results of job evaluation reviewed by the Staffing Review Committee, a subcommittee of Bishops Council. Where key management personnel are clergy, they are paid a stipend and housed within guidelines set nationally by the Church of England.

Charity Governance Code

The DBF takes account of the Charity Governance Code in its approach to governance and effectiveness as follows: -

Organisational purpose the board of trustees - is clear about to maintain and promote the spiritual teaching of the Church assisting parishes to function effectively.

Leadership the Bishops and Archdeacons of the diocese who are all trustees - provide direction that the wider board of trustees can unite around.

Integrity The board of trustees is particularly aware of the need for the parishes and clergy of the diocese to have confidence in the charity and works to that end. It is also aware of the need for the wider public to have confidence in the charity and the sector.

Decision making, risk and control the board of trustees understands that its role is to set medium term direction, and delegates much day to day decision making within that direction to senior employees. The board retains responsibility for, and oversight of those decisions.

Board effectiveness because of the requirement of adequate representation of the various parts of the diocese, the board of trustees is somewhat larger than the size recommended by the code. Where specific issues arise, these are often considered by ad hoc subgroups of trustees, reporting back to full trustee meetings.

Diversity as with other religious charities, the trustees are drawn from a specific group in society in this case Anglican Christians with experience and time availability to take part in the management of the charity. Within this, the board aims to be as diverse as it can and is assisted by the requirement that the various parts of the Diocese are represented.

Openness and accountability the trustees and senior staff seek to foster open relationships, particularly with the parishes and clergy of the diocese.

27

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

Auditors

report is signed:

BDO LLP resigned as auditors towards the end of 2020. Following a selection exercise, haysmacintyre were proposed and appointed at the Annual General Meeting.

The Trustees are responsible for preparing the Trustees Report, incorporating the strategic report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are

28

Chester Diocesan Board of Finance Year ended 31 December 2021 Trustees Report

sufficient t reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The report, incorporating the strategic report, was approved by the Board on 8 September 2022 and signed by order of the Board.

Ven Dr M R Gilbertson Archdeacon of Chester

29

Chester Diocesan Board of Finance Year ended 31 December 2021

Independent Auditors Report to the Members of the Chester Diocesan Board of Finance

Opinion

We have audited the financial statements of the Chester Diocesan Board of Finance for the year ended 31 December 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, cal Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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

30

Chester Diocesan Board of Finance Year ended 31 December 2021

concern are described in the relevant sections of this report.

Other information

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

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

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 charitable company and its environment obtained in the course of the audit, we have not identified material

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

Responsibilities of trustees for the financial statements

set out on page 28, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

31

Chester Diocesan Board of Finance Year ended 31 December 2021

trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

manipulation

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all

32

Chester Diocesan Board of Finance Year ended 31 December 2021

irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is www.frc.org.uk/auditorsresponsibilities report.

Use of our report

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

Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place London EC4R 1AG

Date: 8 September 2022

33

Chester Diocesan Board of Flnance Year ended 31 December 2021 Independent Auditor's Report 34

Chester Diocesan Board of Finance

Statement of Financial Activities for the year ended 31 December 2021

Income and Expenditure
Note
Income and endowments from
Parochial contributions
Grants and other donations
3
Investment income
4
Rental income
Income from charitable activities
Statutory clergy fees
Diocesan Retreat and Conference Centre
Other income from operating activities
Parsonage and redundant church sales/transfers
Total
Expenditure on raising funds
Cost of generating voluntary income
Investment and Rental costs
Charitable Activities
National church responsibility
Funding of parochial clergy and archdeacons
Parsonage purchases, improvements and transfers
Support to clergy and parishes
Diocesan Retreat and Conference Centre
Change in CEFPS deficit recovery plan
24
Total
6
Net income/(expenditure) before
investment gains/(losses)
Net gains on investments
14
Net income/(expenditure)
Transfers between funds
22
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£'000
10,797
672
38
254
-
75
39
-
11,875
18
25
407
9,111
-
1,823
300
(68)
11,616
259
84
343
75
51
469
10,458
10,927		 Restricted
Funds
£'000
-
1,567
306
105
710
-
21
10
2,719
-
83
-
1,346
500
509
-
-
2,438
281
508
789
1,066
226
2,081
7,282
9,363		 Endowment
Funds
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,041
1,041
(1,141)
11,831
11,731
114,082
125,813		 Total
2021
£'000
10,797
2,239
344
359
710
75
60
10
14,594
18
108
407
10,457
500
2,332
300
(68)
14,054
540
1,633
2,173
-
12,108
14,281
131,822
146,103		 Restated
Total
2020
£'000
10,775
1,102
369
378
612
34
131
3
13,404
18
76
437
10,181
339
2,746
325
44
14,166
(762)
482
(280)
-
7,771
7,491
124,331
131,822

The notes on pages 38 to 55 form part of these financial statements. All activities are continuing.

35

Chester Diocesan Board of Finance Balance sheet as at 31 December 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank on deposit and in hand
16
Creditors: amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
18
Total net assets
Endowment funds
19
Restricted income funds
20
Unrestricted funds
Total charity funds		 2021
£'000
126,334
13,101
139,435
1,153
6,552
7,705
(954)
6,751
146,186
(83)
146,103
125,813
9,363
10,927
146,103		 Restated
2020
£'000
117,088
11,444
128,532
638
4,178
4,816
(1,047)
3,769
132,301
(479)
131,822
114,082
7,282
10,458
131,822

The notes on pages 38 to 55 form part of these financial statements.

The financial statements were authorised, issued and approved by the Board of Directors on 8th September 2022 and signed on its behalf by

I N Scott-Dunn Chairman

Ven Dr M R Gilbertson Archdeacon of Chester

Chester Diocesan Board of Finance is a company limited by guarantee registered in England and Wales (no. 00007826)

36

Chester Diocesan Board of Finance

Statement of Cash Flows for the year ended 31 December 2021

Reconciliation of net income/(expenditure) to net cash flow from operating activities
Note
Net income for the reporting period (as per the statement of financial activities)
Depreciation
14
Losses/(Gains) on investments
15
Dividends, interest and royalties from investments
Decrease/(Increase) in debtors
(Decrease) in creditors
Net cash (used in)/provided by operating activities
Statement of Cash Flows
Net cash (used in) operating activities
Cashflows from investing activities
Dividends, interest and royalties from investments
Payments to acquire fixed assets
Payments to acquire investments
Receipts from disposal of tangible fixed assets
Receipts from disposal of investments
Increase/(Decrease) in cash in the year
Reconciliation of net cash flow to movement in cash and cash equivalents
Increase/(Decrease) in cash in the year
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2021
£'000
2,173
-
(1,633)
(344)
(515)
(488)
(807)
2021
£'000
(807)
344
-
(24)
2,861
-
3,181
2,374
2021
£'000
2,374
4,178
6,552		 Restated
2020
£'000
(280)
6
(482)
(369)
42
(445)
(1,528)
2020
£'000
(1,528)
369
(1,055)
(29)
-
560
(155)
(1,683)
2020
£'000
(1,683)
5,861
4,178

37

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

1. Accounting policies and format of accounts

Changes to accounting policies

Following a change of auditors and a review of accounting policies, the directors have changed the policies relating to Fixed Assets as described below. Prior year figur are restated to reflect this.

Basis of Preparation

The financial statements have been prepared on the basis of historical cost with the exception that tangible fixed assets are included at fair value and investments at market value.

The financial statements have been prepared in accordance with the Charities SORP (FRS102) Accounting and Reporting by Charities: Statement of Recommende Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1 (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Ac

Income

All income is included in the Statement of Financial Activities (SOFA) when the charity is has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. In respect of contributions from parishes there is no legal entitlement to income, but there is a high commitment from parishes to pay. They are therefore included on the same basis as above, where there is a reasonable prospect of receipt.

Parochial contributions - parishes contribute based on number of incumbent status clergy and a socioeconomic assessment of ability to pay using information derived from the 2011 census. Parish share is accounted for in the period to which it relates. Provisons are made against any amounts of parish share not considered to be collectable.

Grants and other donations - the DBF receives a number of unrestricted and restricted grants, together with recharges where staff are employed on joint contracts.

Investment income - dividends and interest, mainly arising from endowment funds. About half of the income is specifically restricted to funding the payment of stipends; the majority of the remainder is restricted for a range of other purposes.

Rental income - mainly on parsonages where the parish is in vacancy, together with glebe property.

Statutory clergy fees - almost all clergy now assign the legal right to fees for weddings, funerals and sessions of visiting to the DBF.

Diocesan Retreat and Conference Centre - fees from parishes and individuals attending events at the centre.

Other income from operating activities - including fees for training courses, together with income resulting from the winding up of trusts where the proceeds are payable to the DBF. Also other ad-hoc items of income that do not fall into the other income categories.

Expenditure

Expenditure is included on the accrual basis and has been classified under headings that aggregate all of the costs related to the category. Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with the use of the resources.

Going concern

statements were signed. Having performed the assessment, the Trustees conclude that Charity is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern basis. Chester DBF is heavily supported by Parish Share contributions, and collection rates have held up well during and after the pandemic. In extreme conditions, the DBF has reasonable reserves, could apply the Capital Reserve Stipends Fund to payment of stipends, and a number of properties could potentially be mortgaged.

In making the assessment, the Trustees did not consider there to be any material uncertainty relating to events or conditions that individually or collectively

operations.

Allocation of support costs

Support costs are allocated by reference to the activities generating those costs. This inevitably involves estimates, for example a number staff at the diocesan office a involved in more than one area of activity, so an estimate has to be made of the proportion of time devoted to each. Some items, namely legal fees, are allocated direc to the appropriate sphere of activity. The allocation of support costs is shown in note 5.

Grant making policy

The DBF makes a variety of grants to clergy, their dependants, parishes and organisations as need arises and in furtherance of its charitable objects.

Applications are invited from those eligible under the terms of the various grant making funds. Applications are considered on their merits by the trustees. Furth details of the funds can be found later in these accounts. Details of the amounts and number of grants are given in note 7.

Funds

The Statement of Financial Activities shows funds as follows:-

Unrestricted Funds

These are funds available for the general purposes of the Board. Part of the Board's unrestricted funds are designated, that is, set aside for specific purposes.

38

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Restricted Funds

Where there is a specific restriction on the use of a fund, typically imposed by the donor, it is known as restricted. For example, a donation to the Committee for Socia Responsibility would be added to the relevant restricted fund, and not to unrestricted, general funds. The Board's restricted funds are shown in note 20.

Endowment Funds

Some of these funds are investments held to produce income, and are sometimes called capital funds. The income from endowment funds is added to the relevant unrestricted or restricted. In addition, and following a change in accounting policy, benefice property, that is, vicarages housing parish clergy, are now also included at fa value in endowment funds. The Board's endowment funds are shown in note 19.

Fixed Assets

Freehold land and buildings held for the board's charitable purposes, are included at fair value as at the balance sheet date using valuations obtained from a qualified valuer. Fixed assets are valued on a rolling five year basis.

Glebe property

Diocesan Glebe property is vested in the DBF under the Endowments and Glebe Measure 1976. It comprises a small number of houses the majority of which are occupied by clergy, together with a range of agricultural and other holdings. These are mainly historical in nature, for example a field adjacent to a vicarage. A income generated by Glebe property is restricted for the payment of stipends.

Parsonages

Following a change of auditor and a review of accounting policies, the directors have included benefice property, that is parsonages for the housing of parish clergy, in f assets at fair value. Under s.8 of the Church Property Measure 2018, the DBF may, subject to approval by the Church Commissioners, make a determination that a

Property Measure 2018, the proceeds of sale of a parsonage house are paid to the Parsonages Board for the diocese, which will then apply the monies to a variety of purposes with the ultimate application of monies being to credit the diocesan Pastoral Account, to the extent that these are not required for the purchase or improveme of parsonage houses. The directors therefore conclude that the DBF controls the parsonage houses, by virtue of its ability to make determinations under s.8, and that it probable that economic benefit associated with the parsonage houses will flow to the DBF, because the ultimate application of the sale proceeds is to credit one or mo

as an expendable endowment fund.

Parsonage building funds, which typically arise on the sale of a benefice house in advance of its replacement, are also included within the same expendable endowmen fund.

Depreciation

Again following a change of auditor and a review of accounting policies, depreciation is no longer provided on buildings as any provision would not be material due to th long expected remaining useful economic lives, and because expected residual values are not materially less than carrying value. The DBF has a policy of regular inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Measure 1972. Disposals of properties ten to occur well before the end of their economic lives, and disposal proceeds are usually not less than carrying value. Impairment reviews are undertaken to ensure that t carrying value is not more than the recoverable amount.

Diocesan office at Daresbury Park

The diocesan office at Daresbury was previously held at cost less depreciation, and was the only building accounted for in this way. Further to accounting policy change to bring benefice property on to the balance sheet, and the change in policy on depreciation, the office is now also included at fair value.

Investment property

Property is held by the DBF for long term charitable use, or to protect another charitable asset. As a result, the DBF does not hold any investment property.

Fixtures and Fittings

Computers less than £5,000, and fixtures and office equipment less than £2,500, are not capitalised and written off in the year of purchase.

Investments

Investments are stated at fair value as at the balance sheet date.

Unrealised gains or losses arising on the revaluation of investments are, together with the realised gains and losses arising on the sale of investments, shown in the SOFA as net gains/(losses) on investments.

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

39

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Taxation

No provision is made for taxation as the company is a charity entitled to the various exemptions afforded by the Corporation Taxes Act 2010.

Financial Instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The company 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 their settlement value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Pension schemes

The Board of Finance contributes to the Church Workers Pension Fund (for lay staff) and the Church of England Funded Pension Scheme (for clergy). Both of these schemes are defined benefit multi-employer pension schemes and it is not possible to identify the assets and liabilities of the schemes which are attributable to the Board.

In accordance with FRS 102, payments to the schemes are accounted for as for defined contribution schemes. Contributions payable in respect of the accounting period are included in Expenditure in the Statement of Financial Activities.

The Board has entered in to a deficit contribution plan concerning the Church of England Funded Pension Scheme. Future additional contributions have been discounted and have resulted in a liability being reflected in the balance sheet. The interest cost of the debt is reflected in the Statement of Financial Activities with the payments (less interest) being offset against the liability.

Further detail is provided in notes 24 and 25.

Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the trustees have made the following judgements:

Other key sources of estimation uncertainty include:

2. Auditors remuneration

The auditors remuneration (inclusive of VAT at 20%) for the year was as follows:-

Statutory audit 2021
£'000
29
29

40

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

3. Grants and other donations

3. Grants and other donations
Church Commissioners' sustainability funding to mitigate the financial impact of the pandemic
Donations to Foxhill House and Woodlands Conference Centre
Grant from Benefact Trust (formerly Allchurches Trust)
Grant to Clergy Sustentation Fund
Donations to Social Responsibility
Church Commissioners recharge (Suffragan Bishops personal assistants)
Transforming Lives Together recharge
Donations to Outreach department
Church Commissioners Resourcing Ministerial Education block grant
Diocesan Stipends Fund recharges (housing allowances and St Mellitus training institution)
Chester Diocesan Board of Education recharge
Harrison legacy
4. Investment Income
Investment and fixed interest funds
CBF deposits and bank interest
Other income including interest on loans to parishes		 2021
£'000
500
3
169
5
-
65
-
1
301
172
347
676
2,239
2021
£'000
336
2
6
344		 2020
£'000
-
2
165
5
5
61
32
-
393
101
338
-
1,102
2020
£'000
344
19
6
369

4. Investment Income

5. Allocation of Central services and support costs

The Diocesan Board of Finance allocates its support costs according to the percentages below, apart from some legal fees allocated to the area to which they relate.

Church house costs
Central services
Central staff costs
Legal, financial costs
Governance costs
Prior year comparative (restated)		 Generating
Parochial clergy
Support to
Retreat and
Total
voluntary
and
clergy and
Conference
2021
income
Archdeacons
parishes
Centre
2%
20%
75%
3.0%
100%
£'000
£'000
£'000
£'000
£'000
1
12
45
2
60
3
27
99
4
133
11
108
407
16
542
2
20
87
3
112
1
17
67
3
88
18
184
705
28
935
Church house costs
Central services
Central staff costs
Legal, audit
Governance costs		 Generating
Parochial clergy
Support to
Retreat and
Total
voluntary
and
clergy and
Conference
2020
income
Archdeacons
parishes
Centre
2%
20%
75%
3.0%
100%
£'000
£'000
£'000
£'000
£'000
1
13
49
2
65
2
18
67
3
90
12
118
441
17
588
2
14
66
2
84
1
12
48
2
63
18
175
671
26
890

41

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

6. Expenditure
Note
Cost of generating voluntary income
Central Services & support costs
Investment and rental costs
Rental costs
Value linked loan interest paid
Charitable Activities
National church responsibility
Funding of parochial clergy and archdeacons
Parochial Clergy and Archdeacons stipends
Maintenance of clergy housing
National ministry training and ordinands grants
Central Services & support costs
Parsonage improvements
Support to clergy and parishes
Ministry
Bishops' and Archdeacons' support, DAC, Chaplains & Ecumenical
Education
Social Responsibility
Mission
Outreach
Safeguarding
Discretionary and one off items (EIG)
Clergy/Lay conferences
Grants to parishes, clergy and others
7
Transforming Lives Together
Staff defined benefit pension scheme deficit contribution
Central Services & support costs
2,332
Diocesan Retreat and Conference Centre
Diocesan Retreat and Conference Centre
Central Services & support costs
Change in Church of England Funded Pension Scheme (CEFPS)
agreed deficit recovery plan
26
7. Grants to parishes, clergy and others
Grants to parishes
Post lockdown reopening grants
Bp Birkenhead legacy
Pastoral account grants to parishes
Marton - E J Massey trust
Birkenhead Priory - clerical or lay assistance
Thornton Hough - Fryer Legacy income
Grants to Individuals
No. of grants
Foxhill grants
48
Clergy Sustentation grants
8
Retired Clergy, widows and dependents fund grants
18
Total grants		 Total
2021
£'000
18
102
6
108
407
8,090
1,173
1,010
184
10,457
500
385
276
342
-
-
388
108
13
13
102
-
-
705
2,332
272
28
300
(68)
14,054
2021
£'000
-
23
39
4
5
4
75
1
4
22
27
102		 Restated
Total
2020
£'000
18
70
6
76
437
7,706
1,259
1,041
175
10,181
339
433
244
329
272
132
-
3
(4)
634
32
-
671
2,746
299
26
325
44
14,166
2020
£'000
520
-
-
4
65
4
593
-
2
39
41
634

42

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

8. Staff and Office holder costs and numbers

Staff costs:
Wages & salaries
Social security costs
Pension costs
Average staff numbers based on full time equivalents
Cost of generating voluntary income
Funding of parochial clergy and archdeacons
Support to clergy and parishes
Diocesan Retreat and Conference Centre
Diocesan administration and central support
The number of staff whose salary excluding pension contributions amounted to more than £60,000
were as follows:-
£70,001 - £80,000
This employee accrued benefits in the Church of England Defined Benefits Pension Scheme (note 11).		 2021
£'000
1,617
152
249
2,018
2021
Number
0.5
5.0
17.6
5.1
8.6
36.8
2021
1		 2020
£'000
1,707
158
265
2,130
Restated
2020
Number
0.5
5.0
19.7
6.3
9.1
40.6
2020
1

In addition to the above, the charity had the equivalent of 6.6 (2020 7.2) full time employees under joint contracts with Chester Diocesan Board of Education. Their employment costs are borne by the charity and recharged to Chester Diocesan Board of Education (note 12).

9. Office holders costs and numbers

In addition to those paid as employees of the DBF there are a large number of office holders. In the main these are clergy in parishes, but also include Archdeacons and a small number of diocesan sector posts. There was an average of 204 (2020 199) office holders during the year.

Clergy Stipends
Clergy National Insurance
Clergy Pension Contributions
Other clergy payments		 2021
£'000
5,516
457
2,059
245
8,277		 2020
£'000
5,408
443
2,001
248
8,100

10. Trustee remuneration and benefits

Bishops' Council, the charity trustee body, and the board of directors of the charitable company, have the same membership. So every trustee is a director, and vice versa.

Trustee remuneration

No remuneration was paid to any of the directors (charity trustees) in their capacity as directors of the company.

The following trustees were in receipt of a stipend and provided with housing for some or all of the year, funded by the DBF:-

Ven Dr Michael R Gilbertson, Archdeacon of Chester Revd Christopher J P Hobbs
Ven Ian G Bishop, Archdeacon of Macclesfield Revd Dr David J Page
Revd Dr Robert S Munro, Chair, House of Clergy Revd Michael L Ridley
Revd David Brewster Revd Michael I A Smith
Revd Christine J Broad Revd Christina P Upton
Revd Canon Elaine Chegwin Hall Revd Joshua C Askwith
Revd Simon Drew Revd George T Crowder
Revd Canon David R Felix Revd Simon R Gales
Revd Andrew Q Greenhough Revd Richard L Pennystan
Revd Dr Mark Hart Revd David A Vestergaard

The Rt Revd Keith Sinclair, Bishop of Birkenhead until 8 March 2021, was in receipt of a stipend and provided with housing, the stipend funded by the Church Commissioners and the housing provided by the DBF.

The Rt Revd Julie A Conalty, Bishop of Birkenhead from 28 September 2021, was in receipt of a stipend and housing allowance, the stipend funded by the Church Commissioners and the housing provided by the DBF.

The Rt Revd Samuel J C Corley, Bishop of Stockport from 28 September 2021, was in receipt of a stipend and provided with housing, the stipend funded by the Churc Commissioners and the housing provided by the DBF.

The Very Revd Timothy R Stratford, Dean of Chester, was in receipt of a stipend funded by the Church Commissioners, with housing funded by Chester Cathedral.

43

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

The stipends of the Diocesan Bishop and Suffragan Bishops are funded by the Church Commissioners and are in the range £37,670 - £46,180 (2020 £37,485 - £45,953). The stipend, funded by the DBF, paid to Archdeacons was £36,830 (2020 £36,648). The stipend paid to the Dean of Chester was

Trustee expenses

A total of £7,672 (2020 £9,147) was reimbursed to 5 (2020 13) directors during the year. Nearly all expenses reimbursed to directors are in respect of their charitable work for the Diocese. Amounts in respect of their duties as charity trustees are small.

11. Remuneration of key management personnel

The trustees have delegated much of the day to day running of the DBF to a number of key management personnel. The remuneration of these personnel, including employers national insurance, totalled £399,784 (2020 £382,395 restated), together with pension contributions of £74,515 (2020 £72,759 restated). Of these, the highest paid was George Colville, who received £78,101 (2020 £77,718) excluding employers national insurance, together with pension contributions of £19,603 (2020 £19,507). The key management personnel are listed on page 3 of the Annual Report.

12. Related party transactions

Chester Diocesan Board of Education acts as the education authority for the Church of England in the Diocese of Chester, and as such has objects that are closely aligned with those of the charity.

Contribution re joint employment contracts and other recharges to Chester Diocesan Board of Education
13. Tangible Fixed Assets
Freehold
Land and Buildings
Board
Glebe
Parsonages
£'000
£'000
£'000
Cost or Valuation
Balance at 1 January
10,481
5,329
101,278
Additions
-
-
-
Disposals
(1,503)
(216)
(1,142)
Revaluations
277
450
11,380
Balance at 31 December
9,255
5,563
111,516
Accumulated depreciation
Balance at 1 January 2021
-
-
-
Depreciation charge for the year
-
-
-
Revaluations
-
-
-
Balance at 31 December 2021
-
-
-
Net Book Value at 1 January
10,481
5,329
101,278
Net Book Value at 31 December
9,255
5,563
111,516		 2021
£'000
347
Total
2021
£'000
117,088
-
(2,861)
12,107
126,334
-
-
-
-
117,088
126,334		 Restated
2020
£'000
339
Total
2020
£'000
108,377
1,055
7,771
117,203
109
6
-
115
108,268
117,088

The Board's property comprises the office at Daresbury park, the conference centre at Foxhill together with associated buildings, a small number of closed churches, together with a small number of residential properties, some of which are used to house diocesan appointees. Glebe property comprises a small number of residential properties together with a range of mainly agricultural holdings. Any income arising from Glebe property is restricted to the funding of stipends. Further to a change in accounting policy, benefice property (vicarages housing parish clergy) is now shown on the balance sheet, with the prior year restated to reflect this.

All land and buildings are held at valuation. A desk top valuation was performed by Fisher German LLP as at 31 December 2021, together with site visits where appropriate. Retrospective valuations of benefice property for the purpose of restatement of the prior year figures were obtained by reference to the Nationwide House Price Index for the northwest. The surplus on revaluation has been credited to the Statement of Financial Activities for the year.

In part due to the length of time that many of the buildings have been held, full historic cost information is not available.

Included in the prior year is a small balance of fixtures and fittings at the Daresbury office held at cost less depreciation; this was fully depreciated at the end of 2020.

44

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

14. Investments
Market Value at 1 January 2021
Acquisitions at cost
Disposals at market value
Net gains on revaluation at 31 December 2021
Market Value at 31 December 2021
Investments at 31 December 2021 comprise
No of
shares
CBF Church of England Investment Fund
-
CBF Church of England Fixed Interest Fund
30,414
CBF Church of England Property Fund
373,670
Churches' Mutual Credit Union Deferred £1
10,000
15. Debtors
Amounts falling due within one year
Loan to Liverpool DBF
Other debtors
Prepayments and accrued income
Other loans
Amounts falling due after more than one year
Loans to parishes
Loan to Liverpool DBF
Value linked loans to parishes (note 18)
Total debtors		 2021
Market
Value
£'000
12,499
48
544
10
13,101		 2021
£'000
11,444
24
-
1,633
13,101
No of
shares
564,362
30,414
357,111
10,000
2021
£'000
6
101
210
10
327
-
67
83
150
477		 2020
£'000
11,493
29
(560)
482
11,444
2020
Market
Value
£'000
10,928
51
455
10
11,444
2020
£'000
6
228
214
12
460
21
74
83
178
638

Debtors are valued at the undiscounted amount receivable.

The loan to Liverpool DBF was arranged as £100,000 repayable over 15 years interest free. The loan was made to assist Liverpool DBF with constructing premises for the use of St Mellitus, a training institution with similar objectives to the DBF, and that provides training for the DBF.

Value linked loans to parishes have no fixed repayment date and are repayable to the Church Commissioners only on the disposal of the property against which security is held. As a result, the majority of these balances are likely to be repayable after more than one year.

16. Cash at bank, on deposit and in hand
Balances held by Church Commissioners
Cash in hand, at bank and on bank deposit
Charity Bank Deposit
CBF Church of England Deposit Fund
17. Creditors: amounts falling due within one year
Trade creditors
Accruals
Other creditors
Church of England Funded Pension Scheme agreed deficit recovery plan (note 26)
Creditors are valued at the undiscounted amount payable.
18. Creditors: amounts falling due after more than one year
Value linked loans for parishes (note 15)
Church of England Funded Pension Scheme agreed deficit recovery plan (note 26)
Creditors are valued at the undiscounted amount payable.		 2021
£'000
(4)
3,510
2
3,044
6,552
2021
£'000
120
505
4
325
954
2021
£'000
83
-
83		 Restated
2020
£'000
(2)
1,000
335
2,845
4,178
2020
£'000
130
454
99
364
1,047
2020
£'000
83
396
479

45

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Value Linked Loans from the Church Commissioners are loaned on to parishes on the same terms that they are borrowed. The outstanding loans are for the purpose of assisting the provision of housing for assistant clergy. The loans become repayable on disposal of the property or by agreement between the parish, the DBF, and the Church Commissioners. Value linked loan interest charged interest at 6.4-7.5% pa, the same rate at which the funds are borrowed from the Church Commissioners. Interest payable is included in note 6.

19. Endowment Funds

The endowment funds comprise capital funds, the income of which is credited to the relevant unrestricted or restricted fund:-

Diocesan Conference Centre
Steel & William Fletcher Rogers Fund
Retired Clergy, Widows and Dependants Fund
Clergy Sustentation Fund
Birkenhead Curacy Fund
E J Massey
Glebe Land & Buildings
Diocesan Stipends Fund Capital Account
Parsonages
Prior year comparatives:-
Diocesan Conference Centre
Steel & William Fletcher Rogers Fund
Retired Clergy, Widows and Dependants Fund
Clergy Sustentation Fund
Birkenhead Curacy Fund
E J Massey
Glebe Land & Buildings
Diocesan Stipends Fund Capital Account
Parsonages		 1 January
2021
£'000
135
83
2,773
176
167
135
5,328
3,773
101,512
114,082
Restated
1 January
2020
£'000
130
78
2,635
167
159
129
4,884
3,586
93,221
104,989		 Income
-
-
-
-
-
-
-
-
-
Income
-
-
-
-
-
-
-
-
-		 (Expenditure)
gains/(losses)
and transfers
£'000
20
12
398
25
24
20
234
760
10,238
11,731
(Expenditure)
gains/(losses)
and transfers
£'000
5
5
138
9
8
6
444
187
8,291
9,093		 31 December
2021
£'000
155
95
3,171
201
191
155
5,562
4,533
111,750
125,813
Restated
31 December
2020
£'000
135
83
2,773
176
167
135
5,328
3,773
101,512
114,082

Permanent Endowment

Diocesan Conference Centre Held to produce income for the Foxhill Conference Centre Steel & William Fletcher Rogers Fund Making of grants for women and girls in need on the Wirral Retired Clergy, Widows and Dependants Fund Making of grants for relief in need of retired clergy, widows, spouses of the clergy, and in certain circumstances meeting the cost of clergy pension contributions

Clergy Sustentation Fund Making of grants to members of the clergy in need of assistance. Birkenhead Curacy Fund Fund for clerical or lay assistance at Birkenhead Priory Parish E J Massey For the maintenance and upkeep of church and churchyard at Marton

Expendable endowment

Glebe Land & Buildings Diocesan Stipends Fund Capital Account

Benefice property

Representing the value of glebe property. Glebe rental income is used for funding stipends The accounts are governed by the Diocesan Stipends Measure 1953 as amended by the Glebe Measure 1976, the National Institutions Measure 1998, and the Miscellaneous Provisions Measure. The main function of the fund is to provide income for stipends; it can also be used for other purposes permitted by the Measures.

Benefice houses - vicarages/parsonages, together with any parsonage building funds held for specific benefices

46

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

20. Restricted Funds

The income funds of the Board of Finance include restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes:-

Capital Reserve Stipends
Clergy Sustentation
UPA Projects
Canon White Trust
Jane Hannah Graham Trust
Retired Clergy Widows and Dependants
Steel & William Fletcher Rogers Fund
Parish Mission and Ministry
Diocesan Pastoral Account
Birkenhead Curacy Fund
Foxhill Retreat Fund
RME block grant
Harrison legacy
Restricted Committee income
Prior year comparatives:-
Capital Reserve Stipends
Clergy Sustentation
UPA Projects
Canon White Trust
Jane Hannah Graham Trust
Retired Clergy Widows and Dependants
Steel & William Fletcher Rogers Fund
Parish Mission and Ministry
Diocesan Pastoral Account
Birkenhead Curacy Fund
Foxhill Retreat Fund
RME block grant
Restricted Committee income		 1 January
2021
£'000
3,522
27
14
2
336
491
34
27
2,550
7
181
91
-
-
7,282
1 January
2020
£'000
3,858
24
14
2
335
821
31
27
4,000
79
175
12
-
9,378		 Income
£'000
-
7
-
-
-
86
2
-
25
5
-
301
676
1,617
2,719
Income
£'000
-
6
-
-
1
86
3
-
21
5
3
393
1,535
2,053		 (Expenditure),
Gains, (Losses)
& Transfers
£'000
508
(4)
-
-
-
(4)
-
-
733
(5)
1
(250)
-
(1,617)
(638)
(Expenditure),
Gains, (Losses)
& Transfers
£'000
(336)
(3)
-
-
-
(416)
-
-
(1,471)
(77)
3
(314)
(1,535)
(4,149)		 31 December
2021
£'000
4,030
30
14
2
336
573
36
27
3,308
7
182
142
676
-
9,363
Restated
31 December
2020
£'000
3,522
27
14
2
336
491
34
27
2,550
7
181
91
-
7,282

*In all cases Committee expenditure exceeds restricted income, the balance being funded from unrestricted funds. Details of the Restricted funds outstanding are as follows:

Capital Reserve Stipends Fund for payment of stipends Clergy Sustentation The charity is endowed (see note 20) The income is for the making of grants to members of the clergy in need of assistance. UPA Projects Raised for projects in Urban Priority Areas. Canon White Trust Repair and restoration of churches in the Diocese. Jane Hannah Graham Trust The making of grants and loans for the provision, restoration and repair of churches and parsonage houses. Retired Clergy Widow and Dependants The charity is endowed (see note 20) Making of grants for relief in need of retired clergy, widows, spouses of the clergy. In certain circumstances meeting clergy pension contributions The Steel and William Fletcher Rogers Fund The charity is endowed (see note 20) Making of grants for women and girls in need on the Wirral Parish Mission and Ministry From Archbishops Council. Can be spent on parish mission and ministry activities, or stipends. Diocesan Stipends Income Fund Applied towards the payment of stipends Birkenhead Curacy Fund Fund for clerical or lay assistance at Birkenhead Priory Parish Foxhill Retreat Fund The fund arose from a donation from Chester Retreat House and is to be used to fund Retreats. Diocesan Pastoral Account The account is governed by the section 78 of the Pastoral Measure 1983. It must initially be used in meeting the costs incurred for the purposes of the measure, or in meeting the costs of disposing of or maintaining houses or churches vested in the DBF or Commissioners. If the DBF is satisfied the fund is not required or likely to be required for the above, it may be applied to other purposes of the diocese or any benefice or parish in the diocese. RME Block grant Unspent national church grant funding for the trasining of ordinands Harrison legacy A legacy receivable in the year for support of children, young people and families within the Diocese of Chester

Chester Diocesan Board of Finance is also trustee to the Twemlow Trust. The trust is endowed and has a total capital value of £94,623. The trust arose to pay grants to Honorary Canons of Chester Cathedral with a wish that they preach at Balterley Memorial Chapel.

47

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

21. Analysis of net assets between funds

21. Analysis of net assets between funds
Unrestricted Funds
General Funds
Designated
CEFPS deficit recovery plan
Office refurbishment
EIG Reserve
Lay Training
Fryer Trust
Bishop of Birkenhead Fund
Diocesan Conference Centre
Total Unrestricted Funds
Restricted Funds
Capital Reserve Stipends
Clergy Sustentation
RME block grant
UPA Projects
Canon White Trust
Jane Hannah Graham Trust
Retired Clergy Widows and Dependants
Pastoral Account
Parish Mission and Ministry
Birkenhead Curacy Fund
Foxhill Retreat Fund
Steel & William Fletcher Rogers
Harrison Legacy
Total Restricted Funds
Endowment Funds
Diocesan Conference Centre
Steel & William Fletcher Rogers
E J Massey
Retired Clergy Widows and Dependants
Clergy Sustentation Fund
Glebe Land & Buildings
Birkenhead Curacy Fund
Diocesan Stipends Fund Capital
Benefice property
Total Endowment Funds
Total Funds		 Tangible Fixed
Assets
£'000
4,270
-
-
-
-
-
-
3,252
7,522
-
-
-
-
-
-
245
1,489
-
-
-
-
-
1,734
-
-
-
-
-
5,562
-
-
111,516
117,078
126,334		 Investments
£'000
10
-
544
-
-
147
-
-
701
4,030
-
-
-
-
-
-
-
-
-
88
-
-
4,118
155
95
155
3,171
201
-
191
4,314
8,282
13,101		 Net Current
Assets
£'000
2,931
(325)
-
149
18
-
14
-
2,787
-
30
142
14
2
336
328
1,819
27
7
94
36
676
3,511
-
-
-
-
-
-
-
219
234
453
6,751		 Long term
Liabilities
£'000
(83)
-
-
-
-
-
-
-
(83)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(83)		 2021
Total
Net Assets
£'000
7,128
(325)
544
149
18
147
14
3,252
10,927
4,030
30
142
14
2
336
573
3,308
27
7
182
36
676
9,363
155
95
155
3,171
201
5,562
191
4,533
111,750
125,813
146,103		 Restated
2020
Total
Net Assets
£'000
6,850
(760)
455
163
18
129
38
3,565
10,458
3,522
27
91
14
2
336
491
2,550
27
7
181
34
-
7,282
135
83
135
2,773
176
5,328
167
3,773
101,512
114,082
131,822

48

-

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Prior year comparatives:-
Tangible Fixed
Assets
£'000
Unrestricted Funds
General Funds
4,330
Designated
CEFPS deficit recovery plan
-
Office refurbishment
-
EIG Reserve
-
Lay Training
-
Fryer Trust
-
Bishop of Birkenhead Fund
-
Diocesan Conference Centre
3,565
Total Unrestricted Funds
7,895
Restricted Funds
Capital Reserve Stipends
-
Clergy Sustentation
-
RME block grant
-
UPA Projects
-
Canon White Trust
-
Jane Hannah Graham Trust
-
Retired Clergy Widows and Dependants
220
Pastoral Account
2,367
Parish Mission and Ministry
-
Birkenhead Curacy Fund
-
Foxhill Retreat Fund
-
Steel & William Fletcher Rogers
-
Total Restricted Funds
2,587
Endowment Funds
Diocesan Conference Centre
-
Steel & William Fletcher Rogers
-
E J Massey
-
Retired Clergy Widows and Dependants
-
Clergy Sustentation Fund
-
Glebe Land & Buildings
5,328
Birkenhead Curacy Fund
-
Diocesan Stipends Fund Capital
-
Benefice property
101,278
Total Endowment Funds
106,606
Total Funds
117,088
22. Transfers between funds
Transfers were made to unrestricted funds as follows:-
To/from Restricted funds
In respect of housing allowances
In respect of Glebe
In respect of vicarage construction costs
In respect of vicarage purchases/sales
Other transfers
To/from Endowment funds
In respect of vicarage construction costs
In respect of vicarage purchases/sales
Total transfers to unrestricted funds		 Investments
£'000
10
-
455
-
-
129
-
-
594
3,522
-
-
-
-
-
-
-
-
-
86
-
3,608
135
83
135
2,773
176
-
167
3,773
7,242
11,444		 Net Current
Assets
£'000
2,593
(364)
-
163
18
-
38
-
2,448
-
27
91
14
2
336
271
183
27
7
95
34
1,087
-
-
-
-
-
-
-
-
234
234
3,769		 Long term
Liabilities
£'000
(83)
(396)
-
-
-
-
-
-
(479)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(479)
2021
£'000
(70)
-
-
1,141
(5)
1,066
-
(1,141)
(1,141)
75		 Restated
2020
Total
Net Assets
£'000
6,850
(760)
455
163
18
129
38
3,565
10,458
3,522
27
91
14
2
336
491
2,550
27
7
181
34
7,282
135
83
135
2,773
176
5,328
167
3,773
101,512
114,082
131,822
Restated
2020
£'000
(70)
(24)
(573)
(484)
-
(1,151)
573
484
1,057
94

A number of housing allowances are paid to clergy living in their own accomodation. These are fubnded from the pastoral account on the basis that there is no corresponding vicarage to buy and/or maintain.

When a surplus vicarage is sold, the net sale proceeds are transferred to the Diocesan Pastoral Account, resulting inn the transfers above.

49

Chester Diocesan Board of Finance Notes to the accounts for the year ended 31 December 2021

23. Staff Pensions Schemes

Chester DBF participates in the Church Workers Pension Fund for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

The Church Workers Pension Fund has two sections, and Chester DBF participates in both:

  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 scheme known as Pension Builder 2014

Defined Benefits Scheme

For funding purposes, the 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.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in 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 (2021: £127,181, 2020: £116,421), No deficit contributions were made in either year as highlighted in the table below.

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the Pensions Board on the advice of the Actuary.

A valuation of the DBS is carried out once every three years. The most recently finalised was carried out as at 31 December 2019. In this valuation, the Life Risk Employer contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m.

The next actuarial valuation is due at 31 December 2022.

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay a contribution rate of 35.4% of pensionable salary.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:

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		 2021
£'000
-
-
-
-
-		 2020
£'000
-
-
-
-
-

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

December December December
2021 2020 2019
Discount rate 0.0% 0.0% 0.0%

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

50

Chester Diocesan Board of Finance Notes to the accounts for the year ended 31 December 2021

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 bonuses may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses ma be added before retirement, depending on investment experience 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 The scheme pensions costs charged to the SoFA in the year are the contributions payable (2021: £136,894, 2020: £145,172).

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

For the Pension Builder Classic section, the valuation revealed a deficit of £4.82m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

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

24. Church of England Funded Pensions Scheme

Chester DBF 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.

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 (2021: £1,697,890, 2020: £1,414,385), plus the figures highlighted in the table below as being recognised in the SoFA, giving a total charge of £1,631,890 for 2021, (2020: £1,470,385).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumption

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.

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

As at 31 December 2019, 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

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

51

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2020 and 2021 is set out in the table below:-

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		 2021
£'000
760
(368)
1
(68)
325		 2020
£'000
1,306
(601)
11
44
760

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficit recovery payments but as at 31 December 2021, under accounting rules the payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known.

December December December
2021 2020 2019
Discount rate 0.0% pa 0.2% pa 1.1% pa
Price inflation n/a 3.1% pa 2.8% pa
Increase to total pensionable payroll -1.5% pa 1.6% pa 1.3% pa

The legal structure of the scheme is such that if another Responsible Body fails, Chester DBF could become responsible for paying a share of that Responsible Body's pension liabilities.

52

Chester Diocesan Board of Finance Notes to the accounts for the year ended 31 December 2021

25. Prior year comparative Statement of Financial Activities

Income and endowments from
Parochial contributions
Grants and other donations
Investment income
Rental income
Income from charitable activities
Statutory clergy fees
Diocesan Retreat and Conference Centre
Other income from operating activities
Parsonage and redundant church sales/transfers
Total Income
Expenditure on raising funds
Cost of generating voluntary income
Investment and Rental costs
Charitable Activities
National church responsibility
Funding of parochial clergy and archdeacons
Parsonage purchases and major improvements
Support to clergy and parishes
Diocesan Retreat and Conference Centre
Change in CEFPS deficit recovery plan
Total Expenditure
Net income/(expenditure) before investment gains/(losses)
Net gains/(losses) on investments
Net income
Transfers between funds
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£'000
10,775
168
54
274
-
34
56
-
11,361
18
16
437
8,027
-
2,137
325
44
11,004
357
(31)
326
94
75
495
9,963
10,458		 Restricted
Funds
£'000
-
934
315
104
612
-
75
3
2,043
-
60
-
2,154
339
609
-
-
3,162
(1,119)
156
(963)
(1,151)
18
(2,096)
9,378
7,282		 Endowment
Funds
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
357
357
1,057
7,678
9,092
104,990
114,082		 Restated
Total
2020
£'000
10,775
1,102
369
378
612
34
131
3
13,404
18
76
437
10,181
339
2,746
325
44
14,166
(762)
482
(280)
-
7,771
7,491
124,331
131,822

53

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

26. Restatement of comparative figures

Following a review of accounting policies and change of auditor, a number of accounting policies have changed as described in note 1. In addition, an error has come to light which has been corrected. As a result the comparative figures of the prior period have been restated. The following tables summarise the effects on the primary financial statements:-

Statement of Financial Activities

Income and endowments from
Parochial contributions
Grants and other donations
Investment income
Rental income
Income from charitable activities
Statutory clergy fees
Diocesan Retreat and Conference Centre
Other income from operating activities
Parsonage and redundant church sales/transfers
Total
Expenditure on raising funds
Cost of generating voluntary income
Investment and Rental costs
Charitable Activities
National church responsibility
Funding of parochial clergy and archdeacons
Parsonage purchases, improvements and transfers
Support to clergy and parishes
Diocesan Retreat and Conference Centre
Change in Staff DBS deficit recovery plan
Change in CEFPS deficit recovery plan
Total
Net income/(expenditure) before
investment gains/(losses)
Net (losses)/gains on investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 As previously
reported
Adjustments
2020
10,775
-
1,102
-
369
-
378
-
612
-
34
-
131
-
1,028
(1,025)
14,429
19
(1)
128
(52)
-
437
-
10,197
(16)
1,420
(1,081)
2,825
(79)
376
(51)
-
44
-
15,446
(1,017)
255
482
-
(535)
712
7,059
177
30,516
93,815
30,693		 Restated
2020
10,775
1,102
369
378
612
34
131
3
13,404
18
76
-
437
10,181
339
2,746
325
-
44
14,166
(762)
482
(280)
7,771
7,491
124,331
131,822

54

Chester Diocesan Board of Finance

Notes to the accounts for the year ended 31 December 2021

Balance sheet
Fixed assets
Tangible assets
Investments
Current assets
Debtors
Cash at bank on deposit and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Total net assets
Endowment funds
Restricted income funds
Unrestricted funds
Total charity funds		 As previously
reported
2020
Adjustments
16,193
100,895
11,444
-
27,637
638
-
3,945
233
4,583
1,048
(1)
3,535
31,172
479
-
30,693
12,570
101,512
7,722
(440)
10,401
57
30,693		 As restated
117,088
11,444
128,532
638
4,178
4,816
1,047
3,769
132,301
479
131,822
114,082
7,282
10,458
131,822

The restatements are as follows:-

Change to depreciation policy

Depreciation is no longer charged on buildings as any provision would not be material due to the long expected remaining useful economic lives. As a result, depreciation charged in the prior year has been reversed. As the previous policy was to depreciate opening valuations and then revalue at the end of the accounting period, corresponding gains have also been reversed.

Valuation of office at Daresbury

The office at Daresbury Park is now restated at valuation, having previously been disclosed at cost less accumulated depreciation, bringing it into line with other tangible fixed assets.

Parsonages

Benefice property is now included at valuation in expendable endowment funds, and included in tangible fixed assets on the balance sheet. Similarly, any parsonage building funds are now included in cash at bank on the balance sheet. Any new vicarage purchase and/or construction costs are now disclosed as additions to fixed assets. Gains and/or losses on benefice property valuations are now included in gains/losses on fixed assets

Correction of error in tangible fixed assets

Tangible assets in the prior period has been restated at £585,000 higher to reflect property that was omitted from the balance sheet.

The main effects on the primary statements as tabled above are as follows:-

Statement of Financial Activities

Parsonage and redundant church sales/transfers are restated £1,025,000 lower reflecting benefice property previously shown as transferred in during the year now being restated as already on the balance sheet at the start of the year.

Parsonage purchases, improvements and transfers are restated at £1,081,000 lower reflecting the purchase of benefice property and build costs previously shown as expenditure the majority of which is now restated as additions to benefice property in fixed assets.

Gains/(losses) on revaluation of fixed assets are restated £7,654,000 higher reflecting gains on benefice property in the period. Total funds brought forward are restated at £93,220,000 higher reflecting benefice property included on the balance sheet at the start of the period. The other smaller restatements to expenditure are mainly as a result of the change in depreciation policy.

Balance Sheet

Tangible fixed assets are restated £100,895,000 higher reflecting benefice property now included on the balance sheet, together with two properties that were previously omitted.

Cash at bank and in hand is restated at £233,000 higher, reflecting a parsonage building fund now included on the balance sheet.

55