Live | Pray | Serve rrii Diocese ofPortsmouth ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2020 PORTSMOUTH DIOCESAN BOARD OF FINANCE Company number- 226466 Registered charity number- 249256 Seeking to grow in depth, impact, and number across the Diocese of Portsmouth. A large print version is available on request from Jane Dobbs Email= ane.dobbs ortsmouth.an lican.or I c•lalJoY¢rtl¥e I g+n•rt*US l T•wwc•fvI I plpnÈttlry FlrstFk)LY, Penins*Jknr Hous¢, WhorfR¢od, PDrt4rDouth K)2 8H8. 023 92899650. port￿7(X￿h￿WIcQn.Vrg. @fofEPoFFArnguth THE CHURCH -j OF ENCLAND PORTSMOUTh DI￿ESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2020 TABLE OF CONTENTS TABLE OF CONTENTS............................................................................................................. Legal ObiÈcts..................................................................-..-............ 5trdtewcNims...............-.............-.-.......-.-..-...-...-.................... ArtiV￿e$& Achievementsforthe Year...-...................................-.................................-..........-...._.. . Future Plans.... Flnancl31 Review............. prtnclpal Rlsks & Uncertsintie5.....................-......................... -10 Structure & Govemance..... . .. . . -11 Trustee< R&ponsibilitl*..- .15 Admini51iative Deto115...-.......-............... .16 ittdèpÈndÈnt Audltors Report .18 ststement of Hnandal Aclivities......................-.....-..-....-....-...-........ -21 B*lanceSheet..-...............-...--.-......_....._..._.. Cashtlow Stalement....--......-....-............-..--.......-........ .23 Notesto the Knancial Statemenis.......-...-....-.....-.........-..-........_..._... ..24 PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNLIAL REPORT For the year ended 31 D￿embeT 20ZO Foreword 2020 was my 125t full year a5 Bishop and a very challenging one for every parish and congregation 3cr055 the diocese. Ower nine month5 of lockdowns 2nd restrictions had a very signilicant impact on people, on use of buildings, on uur activlties, and our finances. The resilienL￿ iind commitment of so many colleagues, lay and ordained, voluntary, salaried. or stipondiary, in parishes and in our diocesan support teams has been remarkable. I thank everyone for their fleyibilitvj innovation. and sheer hard work in time5 of change and challenge. The challenge of sustaining and reshaping ministry and mission continue to be a priority both and for the diocese. Change is inevitably c05tly, for colleagues individu311y as WÈ adapt to changirJ£ circumstances, 3nd for the diocese as a whole as we seek to bring sp2nding into line with reduced income. The pandemic ha5 accelerated what anyway was rÈqui¥e.d. Parishes in the dSocese were hugely supportive in maintaining parish share payment5 as fully as possible in 2020. 1 and we are deeply appreciative of this tommitment. Although income fell significantly, as these 3ccounts show, the parish share payments en3bled us, with cash flow aided by a £2m Coronavirus Business Interruption Loan and some furlough support to rnaintain our responsibilities for stipend and salary payments for long enough to begin necessary spending savings. Theyear has tested us all and I congratulate all thosÈwho haveworked with such skill, assistingthe Bishop's Council and Diocesan Synod to make informed and timely decisions. As I step hack ag Bishop and Chair of the Board of Finance I do so with gratitude to all governance and executive colleagues. leaving a diocese addressing nirnbly and with clarity a further year of Covid-rolated challenge. In cornmendirhg this Report and Accounts for 2020 1 assure the Diocese of my admiration, affection and prayers. Best wlshes. Thè Rt RÉvd Christopher Foster Bishop of Portsmouth PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 20ZO The Trustees, who are also Directors for the purposes of company law, present their annual report, together with the audited fin3ncial st3tements, for the year ended 31 December 2020. The directoisltrust&es are one and the 53me and in signing as trustee.% they are also signing the strategic report settion5 in their capacity as directors. This combined report satisfies the legal requirements for: 8 Directors, Report tsf a charitable company, a Strategic Report under the Companies Act 2006 and Trustees Annual Report under the Charities Act 2011 Legal Objects The Portsmouth Diocesan Board of Flnance I"PDBF"I's prirEcipal object is to promote, 3s5i5t and advance the work of the Church of England in the Diocese of Portsmouth by acting ès the financial executive of the Portsmoufh Diocesan Synod. The Diotese of Portsmouth covers prinupally South East Hampshire and the 151e of Wight. Strategic Aims Our vision to LivelPmyl5eNe so that we.. - Llve the Good N&ws of God in Jesus Christ Pray on our own and in community to know God's will, and to Serve the people among whom we live and work. Our purpose is to grow in depth, impact and number so that more peopl& love the Lord their God with all their heart. mind. soul anij strength, more people love their neighbour as themselves; and more people join us in going out to make new disciples and to make disciples of 311 nations. Our purpose is to grow in depth, impad and number., l. Depth Our vision is that everyone will be able to.. Explore and grow in fellowship and di5cipleshlp b. Explore their own Sense of vocation and calling c. Work out what good Stewardship looks like in their life and in the life of their parish and community As we grow in depth we will See people Ilving a person31 and collective rhythm of life which truly shapes who we are and how we live our lives. 2. Impact- Our vision is that God's love may be evident in all that we do in loving our neighbours, in every place. In growing in impact, we will see churches as the focal polnt around community unity, harmony and recortclliation with churches repurposed in ways to support thelr community. Churches will be playing a central and trasnformatSve role in our communities in relation to matters of soci31 Justi￿ and the environmenL 3. Number- Ourvision is for all churches alld styles of church to be thriving throughout iFte Diocese, We want the Diocese to have an increasing number of new disciple5 each year. and for regular attendance in church to be rising. In doing so people will feel able to speak about their fakth with vibrancy and joy. Our values detemine how we go about fulfilling ourvision. We seek to be-_ Coura&eous-we are bold and obedient in our acElons, wlllin8to m3ke costly decisions thatwe and others have shied away from in the past, and notjust forthe sake of those within our churches but for those who might never conslder enteringthem. PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNU￿ REPORT For the year ended 31 DeteFnber 2020 Collaborative- we strive through Dur structure5 but a150 through our attitude and approach to work toge.ther across parishes, deaneriES, ecumenically and throughout the diocwe, because we believe that we are one body with many parts all working in the service of God. Generou5 - we 5hhre our time, money and other resources with those who have least, being patient and supportive, as communities discovei and offer their own gifts, consciously and prayerfully 3llow¢ng our resources to fEJllow wh2t we believe God is asking us to do in mlssion. Resourceful-we will be good stewards who see that God gtves uswhat is sufficient to do his work, who make the most of what we have. and who respond wholeheartedly to opportunities for mission when they arlse. Pioneering- we follow the first disciple5 after Pentecost, considering with fresh and Iran51ormed eyes what God is asking us to do reach other5 With the good news of Christ, being creative, taking risks and 50ffletimes failin& being willins to let go of the habits which hinder us, and all this in the spirit of trust in the resurrection. We therefore look lo Mallhew 5..14-16. which 5peak5 of a distinctive witness to the world, rooted in prayer and service. As Chri5tian5 in Portsmouth Diocese, reflecting the light of Christ, like a beacon across land and sea. we seek to transform this place, on the mainland and on our isl?nd5, as we respond and serve faithfullv in this particular context. Artivities & Achievements for the Year 2020 a year in which everyone's life was turned upslde down. as a Consequen￿ of the Covid-19 pandemic. The PDBF Jnd those It serves faced a diverse range of significant challenges like so manv orgdni5ations during this time. The restrictions irnposed due to the Coronavirus saw church burldings tlose, schools moving to home leaming and staff working from home. Life in many sphcros thcrefore moved online. As 3n organi5ation, we called upon our diocesan values needine to be courageous. collabor2tivc, generous, resourceful. and pioneering as we adapted to ways of working as we sought to support those In our parishes, schools, and communities. In responding to the immed13te impact of the pandemic. important steps were taken to address the resulting financial challenge and to counter the projected under collection cf parish share during 2020. These immediate znd short-term actions included.. _ l. Usp. ofthe gtsvernment fudough scheme within the DBF staff team. This scheme was used from April 2020 through to November 2020. 2. Some other members of slaff taking voluntsry salary sacrifices or reduced hours during the same period as the lurlDu£h scheme was in use. 3. Cler2y cost of living rises and the travel allowance for those clergy based on the Isle of Wieht were 5U5pended for 2020. 4. For parish and DBF 8PPOlntments a presumptive pause was introduced In 2020 meanlng vacancies were not refilled automatlcally. S. Activitles and thelr related expenditures were reduced wherever possible. while th￿e steps supported in the short term, more medium to long term solutions were needed. The first step was a restructure of the DBF staff which included 5 redundancies, 7 hours reductions lequivalent to 2FtEsl as well as 3 full times posts which bpc3m& vacant and were not recruited to. In addliion to ihis, wtTrrkfl0￿ were also reviewed whieh resulted in change5 in job descriptions for 311 remaining staff and there were some changes in line management as the team was stfLJCtured into new team5 as follows.. Str3te8ic Implementation and Resources Mlssion and Educatio PORTSMOUTH DIOCESAM BOARD OF FINANCE ANN15AI REPORT Fortheyear ended 31 December 2020 Soci31 Transformation Lay and Ordained Ministry In a year of great challenge and slgnlfieant change. much was nevertheless achieved in terms of fulfilling ourvision to LivelproyI5e￿e and further our purposeto grow in depth, impact and number. A significant achlevement In 2020 was thÈ Ccbntinued development of OUT Live I Piayl Serve vision and our purpose to grow in depth. impact and number. Thls Involved work with our various stakeholder groups discutsing not only our vision and purpose. Importantly in the conversatlons as to how we are to implement our vision and fulfil our purpose, it emerged that we need 4 key elements'.- Visionary leaders Team5 on a mission Communities of kingdorn building dlsciples Growth enabling structures. More detail is provided in sertion 5 Having identified these four areas, conver58tion5 began in 2020 and 3re continuing in 2021 with deaneries and parishes as to how we will shape and resource our p3ri5hes Moving forward to fulfil our Livel Prayl Serve vision. This plannirtg is bullding on the'Resourcing Growth. project where we developed a t23m approach to parish ministry and sought to progress this in Hèvant, Gosport and Newport, Isle of Wi8ht. This approach was based on a mixture of plarEting new congregations, the provision of op&ratiDnal supptsrt, as well as developing pioneering and fresh expression work through both lay and ordained ministry and seeks to promote 3 rnixèd ecology of church. Throu8h this we seek to reach those who are yet to eng38e with their local church. Thi5 dpproach is fvndamental if we 3re to grow in depth. Impact and number. After permission w35 granted by the Church Commissitrners in 2019, the two P3Stor31 schemes for Gosport and for Newport. Isle of Wight, came into effect in the autumn of 2019. Therefore, during 2020 we began the work of recruiting to and buildin8 these te3rns of13y and ordained role5 those areas whlch Is an exclting and important achievement. In readiness for further work in 2021 to ensure we have growth enabllng structures. we undertook a full governance review. This has resulted in one new committee and an improved flow of infoTm8tion. Thls was primarity focused on more robusl governance, especially in the area of finance Isee section 8,2 for rnore detaill. Anothèr key p3rt of thls review has been a renewed approach to risk management. enabling the trustees to be better equipped to fulfil ihelr duties in this area (see section 71 Communlcation5 work during 2020 ha5 involved offering SUPPOrt for online worship and streaming as services moved online. Daily prayers coordinated by the comrnunication5 team also became a routine part of life. Both elements of work supporting growth in depth across the diocese. Our Education Team supported schools through the most challenging of time5 in education. Throughout the entire Lockdowh and relaxatlon of rules, we continued supporting schools, which Temained open ft>r Key Workerf5 children and Vulnerable children. Ourschools valuèd the weekly resources we provided, for use in school, and at home for children / lamilie5. These resources included Reflection5, Worship ideas and materizls and links to useful websfces and orE8ni5ation5 covering a range of pertinent and useful information on Mental Hèèlth. Well Belng and Safeguarding. In other areas of work the education team adapted previous ways of workin8 SO that trainin8 for Governors. Senior Leaders. Headteachers and Subject Lead could become an online resource. Through the work of the Lay & Ordained Nlinistry Te3m, tr3ining for clergy and lèity continued online during 2020 as did the lay discipleship course. In addition to this 3round 36 lay and ordained people from across the diocese engaged in the pioneering pari5he5 program. Nine candidates were 5entto BAP and nine were ￿cOmMended for trainin& and four candidates were selected for LLM (Reader) training Community groups came to the fore during the pandemic. seeking to serve those in greatest need. Churches offered 5UPPOrt in a variety of ways Includi￿ food banks and free school me31 sUPPOrt. The PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year Ended 31 December 2020 Urban Ministry Group have been active in supporting this outreach. Our chap13ins h3ve 31so been active across a variety of sector5 in oui dioceses, offering sUPPOrt during thE pandernlc. The DBF'5 partnership with CSR meant 5UPPDrt conttnued through the Good Neighbours Network, serving the di0￿Se but more widely in Hampshire also. Future Plans iocesan Synod was reminded of our context in March 2021 and the positloll 15 Stark.. 2019 Chan8e Population.. 694.CV) Attendee5: 16,2(Kl ClÈrsy'. 138 Parishes.. 137 Church Buildings.. 172 Pcpulati￿.. 790,￿)0 Attendees.. 8,SXKI Clergy.. 86 Pailshes.. 133 Church Build1￿.. 167 +14% 45% -38% -3% Clergyper 10.000 People: 2.0 Clergy per 10.(KJO People: 1.1 45% Future planning centres around 8thieving a thrÈving diocese und&r our Live I Praylserve vision and seeking to dirp.r.t all r@.%ourtp.s mtsrp. effectively to fulfilling purpose to grow in depth impact and number5. Work in 2021 and onward5 overthe next five years will focus on shaping and resourcing parishes in our diocese and the DBF for mission and growth. To achiÈvo this the Trustees have appToved a scheme of work whereby we will.._ l. Look to implement a team minirtry model across the diocese. With this approach it is anticipated that our benefices would look like this.. 12pÉop Lou1W¥￿￿￿p￿rPu5 (￿ch￿r￿ SthDDhP4sto Within those teams we want people to be able to focus on key aspects of growth in depth, impact and number with peDple freed from administration wherevEf p055ible to further an enBble mi55iDn. To achieve this, we will look to dewelop lay and ordained vocations and seek to develop diverse teams with the skills needed to serve the local context. Teams will be made up of different role5 to meaningfully serve the different contexts In our dI0￿$e. PORTSMOUTH fllOCESAN BOARD OF FINANCE ANNUAL REPORT For the yèar ÈfftdÈd 31 Deternber 2020 2. Seek to develop the key eEe.me.nts identified in 2020. This w411 involve planning how we will.. al Dev21op visionary leader5 bl Build and support teams on a mission cl Develop and sustain communltles of klngdom bulldlng dlsclples dl Achieve growth enabling strurtures. 3. Achieve financial sustainabilty- a5 well as the continu31 work to ensure the budgets and plans are mission and priority led, a key piece of work In 2021 wlll be a hjll review of the parish share system which will look at the principles on which the svstem is based so that it truly supports our purpose moving forward. ParÈ5h share is under strain and pari5he5 indicating that il is not sustainable at current levels. Thi5 n)eans that there needs to be Significant action taken as a diocese. Despite the restructure of the DBF staff team in 2020 there remains 3 monthly cashflow challenge in 2021 onw3r(ts which could result in a deficit of £1.2m in 2021. Additional income received in 2020 to ease this position will not be repeated in future years. It is for this reason that action described above is essential so that a5 diocese we can be stiuctured for growth but in a way which is financially sustainable. Alongside this, work will be vndertaken to increase income, but this c8nnot be the only approach when faced with a deficit of this size. Financial Review Financial Performance Total income in 2020 for the diocese increased by £1,135,479 to £9,772,68712019- 8,637.2081. Parish share contributions fell by £91,402 to £4,691,17812019 £4,782,580]. This represented a fall in the recovery rate to 89.8%12019.. 93.4%18gainst the 3mount requested. A tonsèquencè ef thè irnpact of Covid-19 on pèrish rinances. In line wtth the recovery rate, actual shortFall on contributions for 2020 stands at £531,000. PDBF received a grant of £600,000 from Archblshops, Councll Sustalnabllity fund, whlch has been credlted to a new de5ign2ted fund to help fund the re-organi5ation work that will be necessary to address the significant number of parishes that have become financially unsustainable. The galn on sale of a long lease 31so contributed £348,446 to income in the year. Resources expended across all fund5 decreased by £729,642 to £8,541,47112019- £9,271,113) as result of prompt decislon making. extensive cost control management and a reductfjon In norm31 activities due to various lock downs and the irnp3Ct of Covid-19. PDBF budgets aims to break even on its gener31 fund before any capital gain5llosses. Covid-19 had a significant impact on finances Ihis year. Parish share receipts fell signilitantly zs did fees. The total negative irnpa￿ from Covid-19 was approximate￿ £0.8m. Against this PDBF made significant savings from a recTUitment freeze, reducing expenditure and utilising the Coronavirus Job Reterbtion Scheme. The net deficiton the 8eneral fund at only£37,31712019.' £557,106) represents the s1gnifi￿nt work to redu￿ costs and to work with parishes to help them sustain their finances during this period. Balance sheet position The Trustees consider that the balance sheet, together wth details in note 20, shows broadly that the Testricted 3nd endowment funds are he5d in an appropriate mix of investment and current 3ssets given the purposesfor whlch the funds are held. Whlle the net assets at the balance sheet date totalled £80,586,110 12019.. £77,386,2201 it must be remembered that included in this totsl are properties. moslly in use for the minlstry. whose value amounted to £57,821,42112019.' £57.029.4681. Much of the remainder of the assets shown in the ba13nce sheet are held in restricted funds and cannot nec￿arlIV be used for the 8eneral purposes of the PDSF. PORfsMOU I"H OIOCE5AN BOARD OF FINANCE ANNUAL REPORT For the year ended 310e￿Mber 2020 Reserves policy Havlng considered financial risk, liquidity requirements and the timing of cash flows throuEhout the year. the Trustees, policy is to hold not more than 6 weeks, normal expenditure in cash or on deposit. thi5 being around £￿jok. The year-end total for 2020 exceeded thi5 at £2.8m. This was deliberate due to the uncertainty of the investment conditions at the time. Funds included proceeds from the CBIL loan of £2m drawn down in lat? 2020, £405k in relation to the on80ing Isle of Wight school's creditor and £1.9m held for the Port5mauth and Winchester Church schoo15 restricted fund. The free reseNes, being the unrestricled general fund net of tangible assets totalled £2.9rn 12019.. EO,872ml which Tepresenled 6.7 month512019.' 2.0 months) of paii5h Share requested. The Trustees alm to maintain between 3 and 6 months. Designated funds The Trustees may designate additional unrestri£ted reserves to be retained for 3n agreed purpose where this is considered to be prudent. Such designated reseNes are reviewed on an annu81 basis and returned to the gener81 fund in thÈ event that the purpose of their designation is no longer considered to be dequatply ju%tified lor their retention. A description of each reserve together with the intended use of the ￿SerVe 15 Set out in note 21. The total value of designated lund5 at the end of 2020 increased by £0.8m to £4.Im12019'. £3.3ml with the establishrnent of the sustainability lund. Restricted and endowment ftjnds As set oui In note 20 PDBF also holds and administers a large number of restricted and endowment funds. As at 31 December 2020 restritted funds totalled £5.5m12019.. £4.7ml and Endowment funds totalled £54.7m12019.. £52.9ml. Neither are available for the general purp05e5 of the PDBF. Grant making policy The Memorandum of Association of the PDBF explicitly permits the PDBF to make grants in pursuan￿ of its ohie¢ts, and the nature of grants made in 2020 is indicated in ntste 11. Investment policy and report In managing it5 investments, the PDBF continue trj receive advice from its Investment Advisory Group IIAGI, and the fund managers. CCLA Invpstment Management. The level of cash being held is kept uttder const2nt scrutiny 8$, despite the continuing low level of inflation. interest rates h3ve also remained very low such that the investment income relied upon for the underpinning of the misslon woik of the Diocese can only be achieved through an actlve investment strategy that deliver5 real growth in total return. The IAG continue to encourage a similar aptjroach in relation to parish funds ènd members of the group continue to engage with parishes to provlde support and 8uidance in this import3nl area. The inveslment policy of the IAG as set out in the terms of referen¢e forthis group are.. al Not more than 6 weeks normal expenditure is to be held in cash for rtsutine purpose5. This money Icurrenlly about £lml Is to be held in the CBF Deposit fiJnd lor such other bank deposit account as may be deemed suitable by the Board from time to timel. It belng understood that the bank current account be rnaintained in credit. bl The Diocesan Secretary following discussion with the IAG is authorised to 5Wltch investh)ents managed by CCLA from time to time in crder to achieve the Boar(Ys required total return. cl Any fund managed by CCLA may be used for the Board's investments, but no other types of investrnent may be used without the Board's prior approval. dl The investment managers are to be instructed to achieve a yield of not le5S than 4% (taking into account the £ash at 3 3bovel, and a total return in line with the appropriate Benchmarks agreed bv the Board annu311y. el This policy will be reviewed at least annually by the B03rd. PQRTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 Decernber 20ZO The income from financial investmenls in 2020 to £725,35912019.' £778,6341. For the ye3r ended 31 December 2L120 the investment portfolio achieved an overall a total return 017.9% Ibeing the increase/decrea5e in market value plus the actual yieldlincome receivedl12019'. 16.9%) Th& benchmark against which each of the individual CCLA fund5 is compared Is dlsclosed in thelr quarterly report. The global equity and investment funds outperformed the Selected benchmark in for the year to varying degrees. The property fund outperformed the benchmark in the135t quarter of 2020 only. The PDBF'S Investrnentstrategycontinuesto be, to maintain a high level of income, and to concentrate on good qU31ity comp3nles and properties with long term growth potenti31. The property fund's performance fell below par at a tot31 return of - 0.48%12019: +2.76%). The global equity fund held and produced a total return of 22.69%12019'. 27.38%1,. ￿thi15t the investment fund resulted in a total return of +10.2%12019.' +22,41%). The % allocation of 3$5ets to funds was as follows.. 2020 68% 23% 2019 Investment fund Property Fund Globa5 Equity Fund 67% 25% loo% loo% Princi pal Risks & Uncertainties As thi5 report has evidenced. the PDBF is fit for purpose: financially 5tahle. proactive. and responsiveto the needs of the Diocese and parishes and the assets and investments held bythe PDBF are well managed and secure. The size and age profile of worshipping Communiti￿ and of ministers is a concem, with a high proportion in the upper age t)rackets.This has potentially far-reaching Impllcations forthe 3im5 and objectives of both the PDBF and each PCC in the medium to lot)g term. The fuiure pldns of the PDBF as outlined above are designed specifically to addr￿$ and mitig3te these key risks and uncertainties and in thi5 way tu continue to fulfil its charitable aims and objeuives and thus serve God faithfully in this Diocese, by responding to his call to action and to fulfil the strategic objectives of the PDBF to grow in depth, impact and number. Key risks and mitigating action5 are as ft)IIow5'. Transforniation and journey of change-the diocèsè is on a significantjourney of change to enable us to become a truly thriving diocese fulfilling its purpose to grow in depth. impact and number. If this change is not achieved in a reasonable timeframe. then it will have a negative Impact on the financial posltion of the PDBF. This in turn will have a negative impact upon mission and growth as further cuts in DBF provision will be needed 8s well as further reductions ivb clergy deployment. Work is ongoing with the Str8tegic Development Unit of the National Church with a view to submitting 8 bid for Strategic Transformbtion Funding, which could reléase signif1cant external fvndlng to support this change aver an appropriate timeframe. The work associated with this transformation journey Is a priorSty and 311 are35 of work are supporting the proce55 a5 a piiority. Governance- the work of the diocese is dependent on good governance and declsion maklng so committee membership is reviewed annually to ensure that decision making groups are appropriately skilled. Training is 31so provided at least at the start of each triennium but more frequently as the need ari5e5. A review of govern3nce structures was conducted in 2020 which will improvè the flow of information, recommendations, and decisions through the governance structure and out to keystakeholders.This 15 particuladythe case in relation tofinance8overn3nce. Work will also continue as we seek to establish growth enabling strurtures. io PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT FOT the year ended 31 December 2020 "I'o ensure. compliance wtih law and regulation, training 15 provided for key member5 of staff as well as maintaining appropriate professional memberships. Parish Share and other income streams.. 68'A of the diocese's incoFne is given by parishes throtsgh parish share. A reduction in payments ¢ould have a large irnp3Ct om the diocese's ability to deliver rnission. Through consultation and communication, the diocese looks to actively involve pari5he5 in the financial dnd strategic decisions. Through its m￿s1on strategy, which links closely to its stew8rd5h(p strategy, the dioce5c sceks to help pari5he5 grow. Covid-19 has increased the risk of 3 fall in diocesan income received through parish Share as P3rishes experience reduced rental and fundraising income and, in so¥ne Cd5e5, reduced giving. In 2020 p8fish share receipts dropped to 89%. Mitigation include5 continued close monitoring of diocesan cash flow5. pursuing other sources of finan¢p and c105e communication with p2rishÈs lo ensure accurate infoimation is received in a timely fashion. The Stewardship Adviser is anatysing the extent to whlch parishes were ieliant on their reserves in 2020 and to what extent that will remain the case in 2021 as restrictions ese. The Stewardshlp Adviser also continues to Support individual parishe5, particularly where parish share is provinga challenge and 35 part of the ongoing stewardship strategy promotes the Parish Giving Scheme asthe m05t resilient method of Eivingfor churches as well a5 promoting the message of Christian g&nerosity. +4ppointments: A diocese is critically depend&nt on the quality of leadership. discipleship 2nd pastoral care of its clergy. A Clear strat•8y, good leve15 of support and improving the quality of housing are also Important to mitigatiFTr£ the risks around the 2bilily to recruit appropriately. Promotlng vocations and better training and svpport are also key mitigatlon strategies. The details outlined in section 5 are also key mitigation factors. SpecI￿￿$t skills and knowledge.. the organisation relies on specialist knowledge in its staff team and these are skills which cann(Trt be e&5ily replaced on the open markeL Mitigation includes providing a good workingenvironment5UPPOrted by effective HRwhore reasonable and achigvable objertwes are set wilhin the context of a relational managerial approach. Our value of collaboration supports and encourage5 team workingwherever possible and'cross 5killing' of team members. We are heavily reliant on IT systems so there is an operational risk that key IT systems fail, preventing key processes from being carried out. Mitigation includes on-going review of resilience and capaclty. ensuring all staff have adequate hardware for their t3sks. Safeguardlnr. The care of childre.n and vulnerable adults remains very import3nt to the diocese. The diocese invests in suitable trained offjcers and tnininE and supporl of parishes and schools. The dlocesessaf@.gtsarding prcKedures have previously been i￿pected bythe national review panel which vxlidated their high quality and work wa5 undertaken to implement those rgcommendations. Systems ère in place to e￿Ure that all personnel are trained at the approprlate level for their roles and that thi5 training is renewed regular￿. We a￿ undertaking a past cases review. Structure & Govern3nce Summary Information about the strurture of the Church of England The Church of England is the establishcd church. and HM The Queen is the Supreme Governor. It is organi5ed into two province5 (Canterbury and York) and 42 Diocese5. Each Diocese is a See under the care of a Bishop who is charged with the cure of souls of all the pEcple within that geographical area. This charge 15 shared with priests wtthin the benefice5 and parishes which together make up the Diocese. The Natlonal Church has a General Synod comprising ex-offlclo and elected representative5 frorn e3ch li PORTSMOUTH DIOCESAN 80ARD OF FIMANCE ANNUAL REPORT For the year ended 31 D2￿mber 2020 Diocese and it agrees arhd lay5 before Parliament, Me8sures for the govern3nce of the church'5 affairs whlch, if enacted by Parliament, have the force of statute law. In addition to th& General Synod, the Archbi5hop5' Council h3s a coordinating role for work authorlsecl by the Synod: the Church Commissioners manoge the historic assets cjf the. Church of England,. and the Church of England Penslon Board administèrs the pension schemes fo¥ clergy and lay workers. Within each Diocese, over311 leadership lie5 Wlth the Diocesan Bishop, who exercises that lettdership assisted by the governance functions of the Diocesan Synod. The Diocese of Portsmouth has seven deanèries, each with its own deanery synod, and within each parish there is a pèrochial church council whlch shares wilh the parlsh priest responsibility for the mission of the church in that parish. Organisational strurture The Portsmouth Diocesan B02rd of Finance is constituted under the provision5 Of the Diocesan Baards of Finance Measure 1925. It IS 3 Tegistsred charitable company ènd has iesponsibility for conducting the financi31 affairs of the Diocese. The Board of Directors Is the main governing body of the charity. Its members are the Directo￿ and Trustees. The Diocesan Synod, however, agrees the overall annual lJudget, including the overall lev&1 of p3r¢sh contributionsto be sought from parishes under the Parish Share system. The Directors 31so form the Bishop's Council (Standing Committee of the Diocesan Synod), the Diocesan Mission and Pastoral Commlttee. and th& Diocesan Parsonages Board. These arrangements achieve the uniting of the Diocese's polic¥-setting and finance-controlling responsibilities. Membership comprises ex-officio members, clergy and lay members elected by their resp&ctive Dioces2n Synod houses. and one membe.r nominxted by the Bishop. Bishop's Council Is also supported by Èmployed staff as appropriate Isee section 12for further Informationl Trustee recruitment. selection, and induction Trustees are member5 of the Bishop's Council & Standing Committee and are selected as set out above. Trustee5 are given inductlon atthe outset of the triennlum and at other times as appropriate. They are also inlormed before seekin8 membership and, at all other relevant times. of the role and fvnction of the Committee. Decision making structure Corporate Priorities and the overall financial strategy for the Diocese, in tts primary Object to promote, aSSls1 and advance the work of the Church of England within the Diocese gf Portsmouth are set by the Diocesan Synod, and the PDBF. The responslbS11ty for ensuTin8 that these prioTltie5 znd 5trate6ies are delivered Is delegated to the Di0￿53n Secretary. The company meets once a year in general meetin8 to receive and approve the annual report and financial Statements and to appoint the auditor5. The Diocesan Synod each year receives and agrees the annual budget, prepared, and approved by the PDBF. The Trustees, meeting within the context of the Bishop's Council and Standing Committee, nomially hold eight meetings during the year to: plan the business of the Synod, to preparethe agenda for Its sessions, and to circulate to member5, information about matters for discussion. initiate proposats for action by the synod and to advise It on matters of policy whTd) are placed before it. advise the president on any mattÈYS which he rnay refer to the council. transact the business of the synod when it 15 not in session. undert3ke the responsibllities of the Diocesan Board of Flnance PORTSMOUTH D10C￿AN BOARD OF FINANCE ANNUAL REPORT Forthe ye4r ended 31 Oecember 2020 undertake the re5pon5ibilities of the Ditrces3n Mission and Pastoral Cornmittee IDMPCI to hold 311 boards and committees accoLJntable for their work and to provide an annual report to Synod of that work. ta work with deanery standing committees on the communication of diocesan issues 3nd the understandlng of deanery issues. Carry out such other functions as the Synod delegates to it. After 3 governancc reviewwhich was undertaken in 2020there are updated term5 of reference for existing committees and there 15 3 renewed focus on how information flows through the Structure to support the wtsrk of the Irustees more effectively. One outworkin8 of the governance review wa5 that the Bishop's Council would benefit fram an additional tommitte& ￿rithin the area of finance gavernance. Therefore, the Diocesan Fimance Executive Committee has been established which is a small group of people with fin3nce and audit experien￿ working with the Diocesan Secretary and Finance Director to work on the following areas in more detail.. budgets management accounls and cashflows annual report and 3ccount5 risk management impact of recommendations from the Investment Advlsory Group in relation to the above. With the introdurtion of the Diocesan Finance Executive Committee, the ftTrrmer Diocesan Finance Committee been changed to become the Diocesan Deanery Finance Committee. This group still comprises representatives from each deanery and members of Bishop's Council. Its terms of reference have been revised to link with those of the Diocesan Finance Executivp Committee and its key functions can be summJrised as follows,. - Carry out detailed monitoring and ovaluation of parish share contrlbutlons. Asree the approach to individual parish share arrears Wlth the Diocesan Stewardship Adviser (including the Viabi1Sty Focu5 Processl. Communicate financial matters to Deanery FSnance Committees and parishes. Provide parish feedback into the Diocesan Finance Executive Committee. bl dl In summary therefore. the Trustees arc assisted in their work by several sub-committees and there is a flow of work throu8h those group thus making effective recommendations to the trustees in Bishop'5 Council'.- Dltscesan Deanery Fjnance Committee reviews 2nd reports on the flnances of individual parishes dnd their ability to meet their parish share commitments. Investment Advisory Group provides advice (the sub-commrttee h3s no executive authority) on PDBF'S investments and fund5 available for investment and the PDBF'S overall investment sirètebry. Property Sub Committee reports to theTrustees,' it oversees repairs to parsonages, glebe property, properties held for the charivs own use. and the disposal and purchase of propertv. Diocesan Hnanté Executive Committee 5crutinises matters of financial management and governance and bring recommendations to Bishop'5 Council. Diocesan Synod Agenda Group support5 B15hop's Council by planning the annual business of Synod for approval. Lay Stall Remuneratlon and Condltlon5 of se￿ice Committee meets annuallyto reviewthe pav, conditions and policSes affecting the lay members of stsff employed by the DBF. 13 PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2020 Delegation of day-to-day delivery TheTruslees and the sub-committees whlch assist them in the fulfllment of their responslbllitle5, rely upon the Diocesan Secretsry and her colle3gues for the delivery of the day-to-day activities of the cotllpany. The Diocesan secrp.tary is siven specific and general delegated authority to deliver the business of the PDBF in accordance with the policies framed by theTrustees. Re13ted Parties The PDBF is required to comply with Measures passed by the General Synod of the Church Df En8lalld ènd Is requlred to make annual p3ymènts to the Archbishops, Council towards the costs and the national arrangÈments for tratning clergy. The PDBF currently receives annual grants from the Church Commissioners in the form of Lowest Income Community Funding and an annual grant from All Churches Trust. In 2020 the PDBF also received a one-off Sustsin8bility Grant from the Church Cornmissioners to support with the financial challenge caused by the imp3ct of the Coronavirus Pandemic and its associated restricti¢ns. Fundraising The Diocese provides guidance to the pari5he5 Wlth regards to fundraising but does not engage in fundraising activities itself. Due regard is given to the FUnd￿l$1Thg Code of Pr3Ctice set by Fundraising Regulator when providing guidance to the parishes. Remuneration of key management personnel The Board operates 3 5e.t s3larysc31e and employees are placed on thiswith regard to benchmarking against omparable roles in other dloceses and the external employment market. The salary scale is reviewed each year by the 803rd with reference to C05t-of-living movements in clergy and natitrnal church staff pay. This process is supported by the Lay Staff Conditions of Service Committee. Emoluments of higher-pald employees are determined in consult8tion between the Bishop of Portsmouth las chair of the Boardl, the Chair of the Finance Committee and thÈ Diocesan Secretèry. Funds held as Custodian Trustee The PDBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 las amended) and the Incumbents and churchwardens (Trusts) Me85ure 1964 where the managlng trustees are parochial church counci15 and others. These assets are not aggregated in the finèncial ststements as the PDBF does not control them. They are segregated from the PDBF'S own assets by me3ns of a separate bank account and accountlng system. Further detalls of financial trust assets, whose market value amounted to £9.4rn 31 31 December 202012019.. £8￿MI, are available from the PDBF on request, and are summarised in note 26. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by the PDBF'S solicitor. Messrs BTUtton & Co Funds held on behalf of schools The PDBF, on behalf of the joint Portsmouth and Winchester Diocesan Board of Education Iwhich Is not incorporated) re£eiwes contiibutions from governors of church schoo15 Wlthin the Dioceses in connection with major repair and capital projetts to church schotsls and government grants in connection with the same. The staff of the Board of Education (who are employees of the PDBFI administer these monies as managing agent and make appropriate payments to tontrartors for work carried out. The monie5 do not belong to the PDBF OT the Board of Education and as such the receipts and payments are not treated as income and expenditure in the Statement of Financial Activities. Any monies held at the balance sheet date are tre.ated as CTedttors on the balance sheet. The amount included in creditors as at 31 December 2020 is £1,794,94912019.. £950,9221- The income and expenditure relating to school projects not reflected in the Statement of Financial Activities amounted to £1,603.667 and £1,281.359 respectively in 2020 12019.. £1.388,513 and £1.786.7921. 14 PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December ZOZO Trustees. Responsi bil ities The TIu5tee% are responsible for preparing the Annual Report and the linancial Statements in accordancÈ wSth applicable12w and regul3tions. Company13w requires the Trustee5 las Dlrectorsl to prepare findrTrclal statements for each financial ye3f. Under that law the Trustees have elected to prepare the financial %taternents accordarice with Unitod Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standards and appllcable lawl. Under tompany law the Trustees must not approve the financial statements unless they are satisfied that they give 3 true 3nd fair view of the state of the affairs of the PD8F 2nd ol the surplus or deficit of the PDBF lor that period. In preparing these financial statements the Trustees are required to.. select 5Ultable accounting policies and apply them consistÈntly. observe methods and principles in the Charities SORP. make judgernents and estimate5 that are reasonable and prudent, state. whpthe.r applicable accounting standards have been lollowed. subject to any material dep3rtures disclosed and explained in the financial statements. prepare the financial statements on thegoinB concern b￿lS unless it is inappropriate to a55ume that the company wlll continue in operatlon. The Trustees are also responsible for keeping pioper accounting records that disclose with reasonable accuracy at any tlme the flnancial positlon of the DBF and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguardlng the assets of the PDBF and hence for taking reasonable Steps for the prevention and detection of fraud and other The Trustees ère re%ponsible for thp maintenance and inteErity of the corporate and financial information included tn the PDBF'S website. Legislation in England and Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ fro legislation in otherjurisdictions. In all matter5 the Trustees complie5 With the Charity Governance Code which CDver5 seven 8re8S'. Organisatlonal purwse. Leadership. Integrity. Decision makin& risk and control. Board effectiveness. Diwersity. Trustees confirm thatthey have referred and had due regard to the guidance contained in the Charity Commission's general guidance on public benefit when revaewing the DBF'S aims and tsbjectives and in planning future aclivities. statement of Disclosure to the Auditors So far a5 the Trustees are aware.. al there is no relevant audit inforrnation of whlch the tharltable company'5 auditois are unaware, and bl we havetsken all the steps that we ought to have taken asTrustees in order to make our5elve5 3W8re of any relevant audit information and to establish th8tthe charitable comp3ny's3uditors are aware of than infom12tlDn. 15 PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 DeteTnber 2020 Appointment of Auditors The re-appolntment of Hay5m3cintyre LLP Bs auditors to the PDBF will be proposed at the Annual General Meeting. Administrative Details Trustees No Trustee had any beneficial interest in the company dur5ng 2020. The following are the Trustees who served at anytime during 2020 up to the date of this report.. Ex-officio Chair The Rt Revd Christopher Foster (The Lord Bishop of Portsmouth,. retired24' Apri120211 The Rt Rev Rob Wickham (Commissary Bishop of Port5tllouthfrorn I" May 20211 The Very Revd Dr Anthony Cane IDean of Portsmouth C8thedrall The Ven Peter Leon3rd (Archdeacon of the Isle of Wight) The Ven Gavin Collins (Archdeacon of the Meon reslgned 21"Jonuory 202]) The Ven Jenny Rowley IArchdeactsn tsf Portsdownl Ifrom July2020) The Revd Canon R C White (Chair of the House of Clergvl Canon D Sutton (Chair of the House of L8ityl Mrs V James (Dioccsan Secretary) Bishop'5 Nominee Mr Philip Poulter Chair of Finènce Committee (frorn 20.Q2.20) Canon J Gwynn Chair of Finance Committee Iresigned 20.01.20J Elerted by.. Synod House of Cler9y The Revd P Armstead The Revd Canon W Hughes IActing Aichdeacon of Meonfrorn 215tJon 211 The Revd DF P Chamberlain The Revd I Snares The Revd Rlchard England The Revd M Bagg (reslgnedOI.09.20J The Revdl Hunt Synod House of Loity Canots D Bennison Mr N Chapma Mr5 M Ciittenden Miss E Davidson Canot) L Docherty Mr M Emerton CanDti S Forster Mrs D Henning-Vear5 (from 14.4.211 Mrs l James Mr A Jordan Canon Dr H Mason Mr Eugene Organ freS￿￿ed21.0I.21) Canon H Spurseon Members in Attendance Member5 of General Synod are also able to In attendance at meetlngs. Throughout 2020, 5 members are voting members of Council in either ex officio or elected capacities (The Ven Peter Leonard, The Vèn Gavin Collins, Rev Canon R White. Canovb Lucy Docherty, Mr M Emerton. Therefore, only I member of General Synod Imrs Emity Baggl is in attendance. 16 PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2020 Senior staff and advisers Di0￿san Secretary Wictoria Jame5 Director of Finance Lisa Streeter Head of Siiategic Implementation and Resources & Deputy Diotesan Secretary lenny Holling5WOrth Head of Lay and Ordained Ministry He3d of Mi55ion and Education and Director of Edutètion Anthony Ruslell Jeff Williams Head of Sacial Transformation Nlck Ralph Re¥istered Office Di0￿$an Office, l Floor. Peninsular House. Wharf Road, Portsmtsuth. p02 8HB Key Advisers and Agents Bankers Barclays PLC. PO Box 165, Crawley, RHIO IYX Auditors Haysmdclntyre LLP, 10 Queen Street P13cp, London EC4R IAG Solicttors Mp.£%rs Brutton & Co, West End House, 288 West Stiect, Fareham, P016 OAJ Investment Advisers CCLA, 80 Senator House, X.5 Queen Victoria Street, London, EC4V 4Fr Glebe Agents Carterjonas LLP, 9-10 Jewry Street, Winchester S023 8R7 Insurers EIG. Beaufort HDuse, Brunswick Roarl, Gloucester, GLI IJ2 HR Adviser5 KBne HR, Westpoint House. 32-34 Albert Street, Fleet. Hampshire, GU513RW ON BEHALF OF THETRUStEES The Right Revd Rob Wickham Chairman 23 June 2021 Victorla James Diocesan Secrelary 23, June 2021 17 INDEPENDENT AUDITOR5 REPORT TOTHE MEMBERS OF PORTSMOUTH DIOCESAN BOARO OF FINANCE Forthe year ended 31 December 2020 Opinion We h8ve audited the flnanclal statements of Portsmouth Diocesan Board of Finance for the yèar ended 31 December 2020 which comprise the Statement of Fin4ncial Actiwties, the Income and ExpenditureAccount,thè Balance Sheet, thè C3sh Flow Statement and notÈs to the financitl statements, InLluding a summary of sl8nSficant accountlng policies. Th& financlal repi>rtln8 framework that has been applled in their prepar8tlon is applicable law and United Kingdorn Accounting Standards, including Financial Beportlng Standard 102 The Flnanciol ReportiiigSt(yndard upplicoble in the UK Republit oAlrelTrnd Iunited Kln8dom Generally Accepted Accounting Pratticel. In our opinion, the flnanci31 statements: ve a true 3nd fairvlew of the 5t4teolthe charitable compan¢s affalrs as at 31 December 2020 and of the charitèble company's nÈt movement in lunds. includlng the Income and eypendlture, foi the year then ended.. have been properly prepared In accordance with Unlted Kin8dom Generally Accepted Accounting Practice. and have been Prepared in 8ccordance wilh the reguirerDents of the CompanlesAct 2006. Baslsfor oplnlon We conducted our audit IN affordan￿ with International St4nd8rds on Auditln8 (UK) (ISA5 IUKII 2nd appllcable law. Our re5wJnsibilities under those standards are fvrther described in the AudltOF'S responsibilfties for the audit of the financial ststements Sectlon of our report. We are indepenLlent of the charity in attordance with the ethical requlrements th2t are relev3rt to our3udit af the financl315totements in the UK, includlngthe FRUS Ethical Standard, and we have fulfilled ourother ethical responsibilities in zccordHnte with these requirements. We be.lieve that the audit evldence we have obtslned is sufflcient and approprlate to provide a bisls for our opinion. Conclu5i0ns relatlngto golng cortceyn In auditlnÉ the financkal statements, we have concluded that the trnstee5' use of the Eolng concÈrn basis of accDuntlng in ihe preparation of the flnandal statements 15 appropriate. Based on the work we h8ve performed, we have not identified any materlal uncertainties relating to events or conditions that, Indlvidually or collectively, may cast sigDifi¢ant doubt on the C￿rItable company's gblllty to continue 85 3 golng concern for J pÈrlod of at leè5t bNelve months from when the financial 5t3tements are ¥uthorlsed for issue. Our responsibilities 2nd the re5ponsibilitSes ol thÈ trustees wlth ￿SpeCt to going CDntern are described in the relevant Sections of this Teport. Other Intormation The trustees are responsible for the other inforwtlon. The other inforrnation comprises the infoTmation included In the Annual Report. Our opinian on the flnancial ststernents does not cover the other informatlon and, Èxcept to the extent otherwise expllcltly stated In our report. we do not express any form of assurance conclusion thereon. In Connectltsn wfth our audit olthelnancial statements, OUT rèsponslblllw Isto read the other Informètion and, In doinE so, consider whether the other InfOr￿tIon is rnaterfally inconslstent wth the Inancial statements or ourknowledge obt21ned In the audit orotheThwse appear5 to be materlall¥ mi55t4ted, Ilweldentifvsuth materlal Inconslstencies or apparent Tnaterial mlsstatements, we are required to determlno whether there Is a material m155tatÈment In the financi81 statement5 Or a material misstatement of the other information. If, based ￿ the work we have performed, we conclude that there Is 8 materlal misstatement of thls other inforrnation. we are required to reportthatfact. We have nothlngto report in this regard. Opinlons on other matters preKribed by khe CornpaniesAct 2LTh)6 In our oplnlon. b8sed on the work undert8ken in the course of the audit.. 18 INDEPENDENT AUDITORS REPORT TO THE MEMEBERS OF PORTSMOLFTH DIOCESAN BOARD OF FINANCE For the year ended 31 Oecember 2020 the information given IniheAnnual Report (which includesthe5tr8tegic report and thediTectors' report prepared far the purposes of company13wI for the financial yearlor whlch the financial statements are prepared Is conslstent with the financi815tatements' and the..Etr8tegic reportindlhe direttors, report included withln the Annual Report have been prepared In 8Ctordante wyth 2pplitable legal fÈquirements. hnatters on whith we are required to report by exceptio In the light of the knowledge and under5tandiTrg of the chalitable companyand its environment obtained in tlie course of the audlt. we have not Identified Initerial mi55taternents in the Annual Report (which incorporate5 the strategic report 4nd the director5. reportl. We have nothing to report in respect of the following matters In relation to which the cornpani￿ Act 2006 require5 US to report to you il. in our opinion.. dequatÈ atcounting retord5 have not been kept bythe charitable companyy or the charltable cornpany financlal statements are not in a£reÈment with thÈ 2ttountlne records and returns,. ar certain disclosures of trustees, remuneration Sp￿lfied by law are not made, or we have not received all the Informatlon and Èxplanotion5 we require forour audit. Responsiljilities ol trusteesfor the financial statements 45 explained more fully in the trustees, r￿ponsibIlitieS statement setouton page 15. Ihe trustees Iwho are also the diTectOT5 of the charitable company for the purposes of company lawl are responsible for the preparation of thefinancièl statements and forbelngsatisfiedihattheygivea true ar¥d faiTview, 8ndfor5uch internal control as the trustees determlne Is necessary to enable the prep•ration of firbincial statements that are free fro material misstatemÈnt, whether due tofiiud or error. In preparingthefinancial statements, thetrustees are responslblefor assÈssln8 the charitable company's abilitv to contlnue as 2 golng cofftcÈrrt. disclosin& as applicable, rnatte￿ related to going concern and using the going concem basis of accounting unless the trustees elther Intend to liouidate the ¢haritaNe company or to cease operations. or have no realistic alternative but to do so. Audltorfs responslbllltlestor the audil olthe financial statements Our objectives are to obtain re2son3blp assur?nce about thether the financigl statements 8s a whole are free from material mlsstatemont. whether to Iraud 01 error, and to i55ue an auditorfs report that include5 our oplnlon. Reasonable assurance Is a hl8h level of 355urance, but 15 not a gudTantee that an audit (￿￿￿¢t￿d in 3ccordance with ISA5 IUKI will always detect a material mlsst8tement when It exSsts. Mlsstttements can arlse from fraud or error and are considered rnaterial If, indsvldually or In the aEgregate, they could reasonably be expecied to Influence the economic decislons of users taken on the basis of thesÈfinancial statements. Irre8ularltles. includlngfraud, are instances of non-cornpliancewith laws and regulations. We design procedures in line with our responsibilitles. outllned 8bove. to deteci material rnitststsment5 in respect of ine8ularities, includin6 fraud. Based tsn our underttanding trf the charitsble company and the environment in which itoperates, we identified that the prlncipal rfsks ol nOn-Co￿p1Iance wth law5 and regulation5 re13ted to safpguardin8 vulnprable belleficlaries, health and Safety, and ernployment (including tax3tionl, and we Considered the extent to which non-compliance mi8ht have a materlal effe￿ on thÈ financlal statements. We a150 considered those laws and regul4tion5 that have a direct irnpact on the preparation of the finaTicial statements such as the Companies Act 21X)6. the Charttles Att 2011 and Churth af ￿n￿and Measures. We evaluated management's Incenti￿ and opportunltles for fraudulent manipulation of the hnanc131 stiternents lincludin8 the risk of overrfde of controls) 3nd determlned that the principal rlsks were related to fund accounting* Includlng transfers betwÈen funds, 2nd revenue recognltion. Audlt procedures performed by thÈ en￿geMenttQ2rn included. Inspecting correspondell￿ with regulator5 and tax authorities. INDEPENDENT AUDITORS REPQRTTO THE MEMEBERS OF PORTSMOUTH DIOCESAN BOARD OF FINANCE Far the year endd 31 DÈeember 2020 D15cussions with management inclu&ing considerdtion of known or suspected instances of non- compllance wlth law5 and regulatlon and fraud; Evaluating managÈrnènt'5 Controls designed to prevent and dètètt irrÈ8ulartties,' Ident5fylngandtestlnElournals, In partlcularlournal entrles posted wlth unusual 8ccountcomblnatlons, P05ting5 by unusual u5er5 orwith unusuol de5criptK)n5' Challenging assurnptions and judgeFnents made by management their critfcal èccountin8 estlmates; TestitTrgtr?nsfp.r% between fLJnds,' and Cut-off testing In respect trf revÉftuÈ. Afurther des£rlptlon of our responslblllties for the audSt of the fln3nclal statements Is located on the Financial Reporting Council'5 website 3t'. kl Th15 description forrns part of our auditorfs r￿ort. Use ot our report This report is made solelytothe charitzble company's members, as a body, in accordance with Chapter 3 of Part 16 of the Comp3nie5 Act 2006. Our audit work h35 been undertaken 50 that we might state to the tharitsble cornpany'5 member5 those matteTS we are required tD State to thEm in an Auditor'5 report and for no other purpose. To thefvll￿textent permltted by law, we do not accept orI55ume responsibilityto anyone otherthan the charitable company and the charit3ble cotnpany's mernhers, as a body, for our audit work. for this report. orfor the oplnlons we have fomied. Ad8m Halsey (Senior StstrtoryAuditorl For3nd on behalf of H8ysMacintyre LLP, StatutoryAuditor Idatel 17 Septen)ber 2021 10 Queen Street Place London EC4R IAG 20 PORTSMOUTH DIOCESAN BOARD OF FINANCE STATEMENT OF FINANCIALAcfiMTIES At31 December 2020 UnrÈstrktodlunds Generdl D￿enated Restrfctéd Er￿￿Ym￿￿t fu Ttstsl bJnd5 2020 Total funds 2019 lQutp In(t￿ andetKILwimentsfrtsm DorotiQD5 .691.178 462A79 147,750 894006 343,187 391,602 171.14.4 7,102.347 4.691,178 2,329,366 J54,58Q 89S.437 453.178 725.357 5ZQ,591 9,771687 4,781580 L396,495 152,601 L170.596 316.302 778.6>1 AichW5hops' Covncll Other d¢hatiprts C￿￿tabl¢att￿es Othertrddin8actwkle5 Invethents Other 2b 6W,(K 1,266,887 6.830 4,431 IW,991 142.692 34E.446 J,879.2rJ 85,305 105.7SB Total InCofft￿r￿Ourt￿S 685305 lQS.758 8.637.208 EV￿dIture0r'. 36,391 7,103,273 7.139. 36,391 8,505,080 4541471 33,25 9,237,861 9,271.113 ChatitsblÈactfvMes r¢Jtal 8.263 8.263 1,393.544 IA53.544 Neil￿0￿￿11exw￿d[tur•J b#fork Ir*Asbnint 1373171 67Y,042 485,73a 105,758 1,231.n5 I633.￿} let￿In5}ll￿￿e$lO￿ imve51rnent5 Is 68,581 175,203 155,631 507,516 6,931 42J6,646 Net In(omellÈkwenditLEt41 3¥261 851245 641.364 613974 lJ38,147 L602.741 Tra￿￿tr5 belweenftsnds 13 I￿62.￿11 (S￿35> 301,Q Olhqrre£ognlsedtsin%/llo55e51 revBlu3tsonoflxeda55e Remea5uremEntof 14 .134 3.fA19 s8,￿0 901,6Qg ¥#15￿3 l.W3,743 58.000 IW61.743 3,L95WU 625,129 I,rJgO.(KM) 1,705,129 4507070 160,134 12717941 m¢Yth*nt1n lunds 847,210 8￿￿91 Totsi fvndsat IJah￿ryI02fy 16,420.209 3.337.546 47362IE 51N92,239 77,38fj, 74m8,Y50 Totsi lundsat31Decembèr2010 20 16,149,41S 4184.756 $543,827 51,7Q8,112 8Q.586.110 86,220 The net suipluslldeficitl of Income over expenditure, together with detalls af Inctsmè and expenditure required by the Companies ACL may be derived from net incorniThg resources before transfers, excludlnE movements on Èftdowment fun(f5, in the Statemènt of Financi41 Activities above. All incorning re50urces and resourc￿ expended deriveérom continulng activities. The notÈs on pagÈ5 24 to 52 form part of the financial statetnent5 21 PORTSMOLfThi DIOCESAP4 BOARD OF FINAWCÉ CompanyNo'. 216466 BALANCE SHEEr At 31 De¢Èmber2020 2020 io FIXEDASSETS rafiObleFixed A%5&5 InYE5trments 14 57.821,421 21.285,6 79.10?￿2B 57,029,4S8 20,496.118 77525.586 CVRRENT A&%ETS Assets heldfarr￿a1e nebto shon Dep&slt Cashaibank3nd in 16 LQ25J49 4,749.986 S42.SSi 1.323.571 8th766 6,581,901 7￿,556 7.634.978 CREDrroRS.' amtHmtsfallln&dL* withln cneyeay 17 7&3.(59 2.071,424 IIETcufiRENT A&SETS 3.8Ei84E 56Y.$54 Totala55E15 le55currentllabllltles 82.925,87U 74OB9.140 CREDITORS4ThvJuntstsiongd￿after More Thanoneye)r Penslonsctrtme 39.76CI 701.92Q 622,8tx) 80.120 Loan5 3nd long-terrn prov151¢ 0￿60 NEfASSETS BOy6.110 77 386 220 JNDS unrestrkted I￿oM? funds.. GeftpTrlfund5 Deslgn*&fvnd 16,149.415 16,420,2Q9 3.337.546 ,757,755 4.n6.236 52,892.229 20.934,1 S.￿3,8Z1 54.704112 Ae5tiitted*unds ENd•wmentfuNJs TOTAL FUND5 .516,110 77,386,220 Revaluation reserves of the following arrv)unts are Included within the above fuDd5'. endowment funds £9.7m 12019. E8.Itnl, ie5tTlct2d fund5 £1.5rn 12019., £1.3ml, deslKnated funds £1,3m12019.. £1,2ml, general funds £1.2m (2019.. £1.2ml. The Note5 on page5 24 to 52 ft>rm part of these financlal statements. The fin8ncial statements were approved bythe Board of Trustees and authorlsed for issue on 23 lune 2021 and slEned on beha￿ ofth2 Board by-. The Right Revd Rob Wlckham 22 PORTSMOUTH DIOCESA14 BOARD OF FINANCE CompanyNo.. 226466 C4SHFLOWAt 31 Tre￿Mber 2020 2020 2019 Plet(ash fIry￿*rc￿OppTrUns artfvltles 1340051 11.583,2991 cashftowsfrom In¥eStlr¥èdbJltks vldends. InTerestandrEri hom investments rchaseof propertyaNJequipmertt rthaseof Inve5tmEfits S￿e rrfpiopprtyind equipment ofinvestrnents $65,025 72L786 (7,5LII 695.59L 185.285 Netfa5h P￿d￿d byllusld inl 53439 1314,4941 CB5hflow51roMfinAnti￿3￿￿ties Loans repaldto PDBF Loan5 repaid by PDBF sh infiow5frDm new bo￿0￿￿8 Cash Oufflowsfrom Thew I40.￿1 N*lcas* u51d iTrfinail￿B 1,959.S40 Ch3￿P￿￿5h BndcathequknlEntslnthere￿tlrnsPer1D 4A25 11.944.6111 hardcash Bquhjakntsat January 032N27 4,037,oaB Ca$hard￿th ￿qU￿￿[e•r$?tJl Do¢ember 5,SS6.7$2 R,LP32,417 23 PORTsM0￿H DIIXESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS For the year ended 31 December 2020 ACCOUNTING POLICIES Portsmouth DBF is a tomp2ny IlmltÈd by guirantee. incorporated in England and Wales, and Is a Publlc 8enefit Entity as def]ned by FRS102. The fin4ncial statements have been prepared under the hlstorical cost conventK)n, ￿1th the exceptlon of freehold properties. which are included at their fair value as dÈterminÈd under the applicable valuation method as dÈtailod in el. and lixed a55et investment5, which are included it thelr markÈt value 8t the balantÈ sheet date. The financial 5tstements have been prepared In accordèn¢e with the statement of Recommended Practice for ChHritie5 Isecond Edition. effective l J3nuary 20L91, the Cornpanies Act 2006 and appllcable accounting standards IFRS1021. The Trustees Consider that there are no tnaterial uncertaintie5 that could cast doubt on the charity's ability to continue 85 8 goi￿￿8 concern. After feviewingthe charity's fOre￿st$ and proiectlons, the TrusteÈs h8VÉ 8 reasonable expettation that the charity h8$ 8dequate re50urce5 to continue as a going concern for the foreseeable future. The Trustees therefore continue to 8dopt the going concern k515 in preparing thi5 Annual Report and Financial Strtements Theprincipal accounting policies and estimatlon technlques 8re as follows. al IntomÈ All Income ts Included In the St2temÈnt of Finantial Attl￿ties ISOFAI when the PD8F is legally entitled to them as income or capital respectively, ultlmate recelpt Isprobable 8nd the ornovTrtto be reco8nised can be quantlfled wlth reasonable 4ccuracv. 11 parish Share is reco8ni5ed Js Income of the year In respect of whlch It is re￿1Vable. ill Rent receivable 15 recogn15ed as iacome in the period with respect to whlch It rel8tes. illl Interest and dlvidends are recognlsed as incorne when receivable. ivl Grants received whlch are sublect to pre-wndition5 for entitletnent 5peciffed by the donor which hove nutbeen tnet at the yeaT-eNd are included In creditors to be carried forward to thefollovdng year. vl Parochl41 fees are recognised as income of theyear to which they are recew2hte. vll Donations other than 8r6nts3re re£o8ni5ed when receivable. vill Gains on disposal of rtxed assets lor the PDBF'5 own use 11.e., non-lnvestment assets) a accounted for 8S Other Income. Losses on disposal of such a55ets a￿ 3ccountLYJ for as other expenditure. vllll Stipends fund intorne. The stipe￿15 Fund Capitsl account Is governed by the Dlocesan Stlpend Fund Measure 1953, as amended. and the use of the Incoyne is restrfcted for clÈrgy stipÈnds. NOV￿ver. the income is fully Èxpended within the year of receipt and the legal reStrI￿OnS, therefore. are satisfied. It Is on thls basls that the Income and the Inormolly tnuch 13rgerl related expendlture are both included in the unrestricted column of the Statement of Flnanclal Artivlties forthe sake of greater clarity and simplicity in financi81 reportlng. bl Expenditure Eypenditure is included on the accruals ￿$1$and ha5 been clas&fied unde¥ headlngs thataggregate all ¢trst5 related to the Statement of Fin3nclal Actlvitle5 category. 11 Costsof ralslng lunds are constrained to costs relatingto thetempor£ry rentlnE Outof parsonaees Bnd investment rnanagement costs of glebe and 8nV Other Investment propÈrtles. 111 Charitable ewendiluTe 15 analysed between contributions to the Archbishopg Council, and expenditure on resourcing misslon and mlnistry withln the DlotssÈ. PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMEMfs For the year ended 31 Dettmber2020 1111 Grantspayablo 2ro thar8ed in the year when the offer is conveyed tothe reciplent extept in those cases where the offer Is conditional on the recipient satlsfying performance or other d15cretionary requirements to the 5atlsfaction of the PDBF, such grants belng recognis2d a5 expenditure when the con(Jition5 attaching are fulfilled. Grants offered subject to such conditions which have not been met at the ye3r-end are noted a5 a commitrnent, but not accrued as expenditure. lvl Support costs consist of central rnanaÈement, adrninistration, and governance costs. The amount sptnt on raising fund5 and other activities is considered to be immaterfal and a115UPPOrt costs are allocated to the purpose of charitable activities. Costs Ère allocèted wherever posslble directly to the activity to which they relate, but where such dlrect allucation is not possible, the remainder is allocated on an approximatè staff tlme basls. VI Pw51on ccntributions. The PDBF'S 5t8ff are members of the Church Workers Pension Fund.. either the Pènsion Buil(fe¥ or the Defined Benefit Schemes, and Cler8y are members of the Church of EnglaTrd Funded Pensions kherne (see note 241. The p&n5ion c05tscharged as resou¥ces expended representbDth the PDBF'£ contributSons payable in respeciof theaccountlng perlod, In £ctord3nce with FRS102 and the lulldin8 Ot the deficit. tbeficit funding forthe pension sihemes to which PD8F partitipètes 15 accrued atcurrent value in crÈditors distinguished between tontribulionsfallinE due withln one y&8r and after more tTr￿n one year. cl Tanwble fixed assets and depreciatlon Freeholdpropeitie5 Properties are accounted for 8t their f£ir value and are reviewed on a five-year cycle and revalu accordlngly. Depreciation is not prowded on buildings as any promsion (annual or ¢urnulativel would not be materlal due tothevèry long expected remainlng useful etonomic life IN each case, and because their expected residual value Is not materihlly less than thelr carrylng value. ThÈ PDBF ha5 8 policy of regular structural Inspettion, repair and maintenance, whlth In thè case of residential propèrties 15 in 8ccordanc@ wth the Repair of Benefice& Bulldings Measure 1972 and propertles are therefore unlikely to deterloraie or suffer from obsolescence. In addltiort, di5P05a15 of propeitles occur well before the end of their econ(￿￿￿ Iwes and dlsp05al prO￿ed5 are usually not less than thÈir carrying value. The Trustees perform annual Impoirment reviews In accordancèwlth the requirementsof FRS102 to ensure that the carrwng value is not More than the recoverable amount. PGrsontrythouse5 The PDBF has fdlowed the requirements of FRS102, In Its accounfjrTrE treatrnent for beneflce houses Iparsonag*l. FRS102 requires the accountlne trÉ3tYnent to follow the substance Df arrangements rathe¥ Llian their Strict legal form. The PD8F Is formally responsible for the maintenancc and repalr of such properti￿ and has some jurisdiction over thelr future use or potcnlal salÈ if not required as a benefice house. but In the meantitre legal tltle and tho right to boneficial orcupation is vested In the Incumbent. The Trustees therefore consldcr the most 5uitsble accountlng ptrlity 15 tc capitsli5P such prowrtiesas e%pendablÈÉndowment asset5 and to tarrythern 3tthelrp.stimoted current marketval￿É. Thls treatment is also applled to any property whpTP the title wll revert to the PCC in the event that Should no longer be required a53 parsonage. Parsonag@ housÈs are ieValU￿ on a flve-yèar cycle. Property costvafues For the purpose5 of the calculatlon of a revaluation reserve, where the artual cott 15 not known. the cost value Is deemed to be the walue at thich the property was brought into the current aciounting systern in 2(h)7. dl Depredatlon on leasehold property Depreciation is provided on le85ehold propertie5 over the lesser of 50 yÈ2rs or the life of the lease. 25 PORTSMOLffH DIOCESAN BOARD OF FINANCE NOTES TOTFIE FINANCIALsTATEME￿s Fortheyear ended 310e£emb¢r 2020 I. ACcOU￿￿NG POLICIES (continued} el Other a¢Eounilng policie5 11 Fl¥ed asset investments are included ill the balance sheet at market value and the gain or loss tsken tothe Statement of Financial Act[￿tIes.Theslng1e property held asan Investmentls revalued by the Diocesan surveyor on a flve-year cycle alongside all other properti&. GlebÉ land Is valued at ten tlmesthe annual rental in¢om 111 Leases. The PDBF has entered onlyinto operating lease arran8ementsforthe useofcertairt assÈts, the rental for which is charged IT? full as expenditure in the ye3r to which it relates. Where rent free periods are gwen as part of art oper8tSng lease. the impart of thls rent-free period is reflerted in thÈ Statement of Financial Activltie5 overthe lease term. iiil Financial instruments are recognis&d In the charit¢s balance sheet when the charfKy be£oTne5 party to the contractu31 provi51on5 of the instrument. The charlty only h85 finantial assets and li8billties which qualifv as baslc ftnanclal instruments. Fln8nclal assets and liabilities measured at atnortssed cost, whlch Include5 loans to parishes. parish share receivable 8nd other debtors, bank loan5 and creditors, are Inltlall¥ measured at transaction pricÈ includlng transartion costs and subsequently carried at arnort15ed cost U5in8 the effective interest ratp_ method. Financial issets held ai falrvalue compri5ethè listed and unllsted invesiments d15c105ed in note 15. f> Fund balan Fund Balan￿5 ère spllt between unrestrlcted (general and designated), restritted and endowment funds. Unrestrtcted lund5 are the PDBF'S carporate funds 3Nd are freely avoil4ble for any purpose wlthin the charitsble companvs objects, at the discretbn of the PDBF. There are two types of unrestrlcted fund5'. General fufftds whkh the PDBF intends to Use for the genèral purposes ofthe PDBF ond t￿lE￿ated fund5 set aside ttut of unrestricted fund5 by the PDBF for a purpose speclfied bythe Trustees Restrlctedfunds are in¢omefundssubjectto conditlons Imposed bythe donorasspecificterms of trust. or else by legal measure. Endowment fvnds are those held on trust to be retained lor the benefit of the charitsble company a5 4 capFt31 fur*d. In the case of the endowment funds admlni5tered by the PDBF (Stipends Fund Cipital, Parsotta8e Houses and Schools), there are discretionary powers to tonvert C2pltal into Income and, a5 3 result. these funds are cla55rfied as expendable endowment. Endowment funds where there is no provision for expÈndlture of capital are cla55ified as permènent endowment. "Special trusts'135 defined by the Charftles Act 20111 and zny other trusts whère ihe company aLts 2S trusteeand contidsthÈ management and use of thÈfunds. are Included In the compantys own financlal rtatements. Trusts where the PDBF merely as custodi3n trustÈÈ wlth no control over the management of the funds are not Included In thefinarKi41 statements but are sumrnarised in the notes to the flnanclal statements. 26 PORTSMOUTH DIOCEMN BOARD OF FINANCE NOTES TO THE FINANCIAL5TATEMEMfS For the year ended 31 December 2020 gl KeyJud&erne￿ts The pieparèiion of the financi31 staternpnts require5 management to makÈludgeYnents. estim8te5 assumptlons that affect the arnounts reportsd for a55eis and Ilabilities as at the balance Sheet date, and the amounts reported for revenues and expenses duilng the year. However, the nature of estlmation means that actual outcomes could differ from those estimzte5. The followingjudEements (apart from tha5e involving estimates) have had thÈ rrios# Slgnificant effect on amounts recognised In Lhe financial statements.. Basis for non-depredation of functional rÈsidential property A55urnplions underplnningthe clergy and church workers, pension scheme liabilities. DONATIONS 2a Parfsh Contributlons Unre5trfcted Gén@rnl Re5tdcted fund Endowment funds Totalfund5 eqvested shortk1llsuTpl￿SaSa1￿Stc8Sh iei8W P3ynipTrts received changelnèm￿￿ts re￿i￿￿tsIe Parishsh?re recdwdble 5,211,405 1725 9Z3} 4,487A82 203.696 5.213A05 4,487,481 203￿96 4.$9L17 4.S9l179 2019 U￿eStrtcttdlUr￿ts G*n&ral De5iBnated He5trtthd funds ErydowMht Tgt41 nds 2019 pailshsharÈrequ&ted 5h(nfalVsurplus agaInst￿$hrec*yEd Payment5recelved Cla￿¢ In amounts ￿e￿1Vable 5,119,47S 1145,954 4,973,491 1190.911 ,78l58Q 5,IAgM75 145 $73,491 4.182,580 The majorilyof danationsare ttrllected from thÈ parishe5 of the dloce5elhrough the parlsh sh¥resystem. Parish share payments recelvèd represented 89.9%12D19'. 97.1%] of the amount requested. 27 PORTSMoufH DIOCESAN BOARO OF FINANCE NofESTO THE FINANCIALSTATEMENTS For theyear ended 31 December 2020 zb Archbi5hops' Council unrestrfrtedlunds Genual D8518Th3ted Endowmert Toul fr>nds ft￿￿5 fur￿5 Selectfvo 355.579 365,579 96.9111 pèrbhmts51ornéevdopmentfund CCEnMrfor ME 5ttatwc t*velopm¥ntFund 213353 ￿￿3,534 213.353 4053.5Y gr3rt 6uo,r 600,0 s(M),o 2,329.3S6 2.479 1,256,887 Unre5trkbdthJhds GBn8ral DeS￿n￿￿ Endowment TtstslfuThls lund5 2019 funds Selecitve aliotsityon Pa¥tsh mW¢DOev￿l￿MI￿tI￿￿d CC8rèrtfor RME Sb7teg1¢DeVelo￿rtFVnd 354AthI t￿162 35a.8C Loi, 160.228 Y80.305 S￿$33 160,22B 780,3D5 1396.495 455,952 2¢ other dDnations UnTe5trl¢ted funds Genèral De5TKnated Re5tTlcted EThdowment Totil fvnds funds fvnds 1020 *MI Churche5 Twst Donatlons Gr3ntsfrorn trusts 915LM) aS,181 91￿ 40,011 22,069 147,750 21,069 154.580 6030 Unr4Strfrted fvnds General De*natid Re5titrt￿ ￿n¢￿Irt lunds fu￿d$ Toiallund5 2019 IChvrrh¢s Trust Dohaew5 Grdnts fyc tlusts 84750 75 74,932 773 24,695 34.919 161.133 J1919 192,601 6.773 28 PORTSMoimi DIOCESAN BOARD OF FINANCE NOTES TO THE FifoANCIALSTATEMENfs For the year ended 31 Detember 2020 3 CHARITABiE AcnviTIES Unrestrktodfunds Genetsl Restrithd Funds Éndr the year ended 31 December 2020 INVESTMEMf INCOME Umes%rlc%gd lund5 De5tgrtated Rettrkied fund* EndovJmeM TDrAlfunds fvn Diirydendsrecelvdb Interest receThYble Ren re£tivBbl2 350,529 84.31$ 136.755 105133 677mZ 5,¥47 325 7.252 ,073 391h12 41.0 725557 I42￿Y3 lQ5,758 I￿r￿*rICt￿dfunds 6Eneral De￿￿n¥t￿￿ Re5trfthd Endowment Tatrllunds nds 2019 Dkrfdends r￿l￿able 863511 166.070 92,432 714 recekwable 7.798 775 7,915 1*157 re(eN3W* 43N3J 414?43 43,433 778￿4 95.WS 1?40D5 94.081 6 OTHER INCOME unrestrtctedfunds Gen¢¥Jl Des*ted ResErlcted Enda&￿tst Total (und5 nds 2020 GaittOf.tsleof properde5 kQ.iThl Furlough grnnt 162,145 161145 172,1415 524591 Other Income for 2019 was nil. 7 FUND RAISING COSTS unrestrkred fvnts R45trfcted Er￿0￿￿ TOhlfvnd5 fjeneral Des1&￿tea fur￿& funds ￿e￿age￿Sfee5 and repairs 5,5ZI 9,52A Ani8ementfe¢5 of rent415 2A970 35￿91 36,391 unr85trfCtodf￿ Re51rktsd EndO￿t TwI￿ndS Genetsl Desl8natsd fvnds lunds raebe3Bem'5feesAnd rep¥lrs Ll.376 XIA76 a￿leme0tfeeSOr reDfa15 21876 21,876 33,252 93.252 30 PORT5MoirrH DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Forthe year ended 31 Dètember 2020 CHARITABLE ACTIVITIES Unre5trlL*Ed fvnd5 Ge￿*d] DeS￿￿tea Endow fuThJs y0lalfu￿J5 funds 2020 cDntriti￿o￿5tcAVC￿blsh¢p$'thundl 184,469 151192 184A69 154,192 71053 S,919 SS,230 488,173 t￿￿0￿￿1 church re5POn5ts11rie5 iknnts andprow$l¢￿S 6J19 66,230 88,873 Retlred dew huu5ingUJ5ts R¢sourdD8milMStryaTrJ m1551on mlnI5try Paii5hrnin15ty. Sdpends and n*ional InsurarKe Pen51onc05ts HAS1￿6 CD5t5 Removal.resgttieMent & other&aTrts OthÈ.'exppn5 282.991 281991 2,821,151 $29,020 S91,862 77.128 4￿793 4.254.954 232.42ts 059,579 629.L 675.885 72.128 Y18,0#6 5N37 1159771 676252 1.197,771 115,0361 5upportformln15tryand ThThss 840,249 537.504 806A34 I￿23 189.920 {571 LO45,992 ¥J7,4L7 913,915 Mi%%10na￿d Edutstlon MiS5iun R￿oU[Ce5 ènd 7A76 Sodet¥ Govembnce Othw Dlocesan Centralsupport 35N73 39.781 35N73 45,721 2.3Sg,446 i95.￿3 2,578,518 7,WJ.273 4264 tJ93.$44 8,505,( Unre5trfrtedfvn¢s enerwl Désigmtod Totalknd5 hJn* TnJninETut 181471 X%.879 W7l 6.$ Fl&¢￿￿11Ch￿1￿ts5ponS1b1l￿￿1 41 JE8￿￿￿￿￿[on1T1￿ul￿ft$ L948 S>OY6 63m6 411JlO 41UIO min 273 J73 2,946A62 1.971 985J19Y 126,031 513J7 4,8a4 sIonw5ts J.972 &Xlg.544 6.768 107.117 5,94L146 1SIA47 52fi32 BTafv51 135.615 *43￿15 770.d?9 ?￿.15B 135Nsa 215.UlO 724.W EDI.52a MIS￿￿￿•￿dR￿Urrs Unre6trk*dtrJr￿S G￿￿ra1 De5iy•ted M•51rfttÉd Erdovlt Toknlfunds furtds tunds 36,7*) 39.781 76,571 Govein3nc 39,781 76,$71 Unrest(Ichdfvnd5 R85tri(iEd ETrdoWt Totslfvnds 6eneral D￿lS￿￿t¢& fvnts nds C¢Mral 8dmlnisiratlon 360.179 3W79 Govern4YKe 27.779 27.7yg 58 ,958 Auditors remuner8tion forthe yearw45 £16,53012019 £13,873), and the cost of operating lease renta15 W35 £16.902120J9 £5.9321 32 PORTSMoufH DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENfs For the year ended 31 De￿rn￿er 2020 11 ANALYSIS OF GRANrs 20 Ir￿l￿o￿al5 InSUt￿￿ns Fromunfe5tsictedfundslornational Churchie5wnsibillttes'. Contrfbu¢ionstoAr£hbishty's Cdunol From ￿reSt￿Ct￿lU[￿s'. 48&8?3 488.873 Cathdral Reilipd LayW0rkerPen￿on Grant 2,020 Remo￿7 indie5ettlementErants 13 52,312 53.317 L4 54,332 54,332 FrtMnrostrSctedfvndsfOrvar￿ puipos£s'. shops Lent￿p￿Sraftts 15 54,332 488,873 543,lQ5 N￿rnber Indr￿dual5 I￿￿￿￿¢r¢I Total FrtNnurttstrlcted ￿j￿j$￿Matrtsn￿I Churth re5ponslbllities- CDlltn￿t1O￿IOArtsè1￿h0p,S ￿1reStrICted 411,810 411,810 Cathedral 16,163 16,163 RetiFed ￿Yw￿￿erPl11sltsn Gtsnt 1.980 Rem￿1 ie&ettleMentgraThts 19 64.￿5 64.255 Mi5511￿ OppDmnity Fund p¥ishgrwts io 34.440 31 66,235 IJ6A38 FrL¥n restrfttedfund5forvJrlw5wrposes'. Blshops LentP4)pealgrants 20.071 20.071 39 86,235 482 548.719 33 PORTSMOWH DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMEI￿S For the year ended 31 DecembEr 2020 12 STAFF COSTS 1,443.Q67 NaI￿alInsUranceCQ￿trfbjtlO 125.079 142,214 pen￿0￿ ¢05ts 202. 207,6 1,7g4957 TheJv¢rag¢ nurntserof p2t50ns empltrffjd durln8theyÈarbasedonfulltim@equSvdlents 202Q 20ts 45s41￿ & Ethcatio Lty&Ordè1￿ed Minsty str￿t￿l(1rnpIe￿entati0￿& Res￿rceS Sodal TranslorrnatS0 lolwwch 2.2 are ekter￿lIv￿ThdedI 15A 35.8 Paroth41A551stants 36A The3v￿a£e numbero1peis(￿￿m￿￿ddUrfngtheyear.' io o. MWioTh& Education Lay&trthlned Mln55try Str4teBk ImP￿￿ent￿tIon & Rè%ourtes 5arialTran5formatlon io io li 12 17 41 ParochlalAS￿Stsrnts 41 44 The number of staff whose emtrluments lincluding benefits in kind but excludin8 pension £ontrlbutlonsl 2mourttÈd to more than £60.000 were asfollowa.. 2020 2019 E70.000- £80.000 Pen￿on paymeTrt5 Df £24,60012019= 15,2681 were made forthese employees. RernunEralion of Key Man•Eement Personnel Key management personnel are deemed to bÈ those having authority and responsibility. delegated to them bv the trustees, fDr planning, dSrectlng and controllingthÈ activltles of the diocese. DurinE 2019 they were.. DIoce￿n Secretary & Company Secretary Victoria Jame5 Direttor of Finance Ltsa Streeter140%1 Deputy Diocesan Secretary Jenny Hollingsworth Head of Misslon and Dlscipleship Revd Anthony Rustell Head of Education Jeff Williarn5133%1 Head of Sacial TTansformèt1on Nick Ralph IlO%I Remuneration. pen5ion5 and expenses forthese 6 employees arn￿nted to £263.40812019.. £271,289). PORT5MoufH DIOCESAN BOARD OF FJNANCE NOTES TOTHE FINANaAL STATEMENT5 Forthe yeaT ended 31 December 2020 12 STAFF COSTS Icontinuedl TruthÈès' emolument5 NoTrusteerÈteived 8nyremuneritioM for services as Trustee. The Trustees received travelllng ahd out of pocket expenses, totalllng £11.663 12019 - E16,2601 in respect of Geneial SyniKI duties. duties as archdeacon o arealrural de4n. otherduties a5 Trustee5. The following table gives details of the Trustees who were in receipt of a silpend and/or housing pro￿￿e￿ bv Ihe PDBF duringthe year.. Stipend Yes Houslng Ye5 Ye5 Ye5 Yes Yes The Archde3con of the Meon (Collins) The Archdeacon of Isle of Wight ILeonardl TheArthdeacon of the Meon IRowleyl Chair o*House of Clergy ICanDn R C Whitel The Rpvd Marcus B38g The Ilevcanon William Hughe5 The Revd Dr Paul Chambedai The Revd lan Snare5 The Revd Paul Armstead The Revd Richard England The Revd J8me5 Hunt Yes Yes Yes YÈS Yes Ye5 Yes Ye5 YÈ5 Yes Ye5 YÈS Yes Yes The PDBF 15 responslble forfvnding the Church Commisslonersthe stipends of licensed 5tipendiary clergy in the diocesc, otherthan bi5hop5aiid cathedral Staff. The PDBF Is also responsibleforthe provislon of hou51nÈfor stipendiary clergy in the dincese, alain excludiiig the diocesan blshop and cathedral staff. The PDBF paid an average of 98 12019-. 971 stipendiary clergy as offlceholders holding p8rothial or diocÈ5an appoir)tments in the di0￿$e, and the costs weie a5 follows.. 2020 £'ooo 2019 £'ooo Stlpends Natlonal insurance contrib￿0￿$ pÈnsioncDSts- current year - deficit reduction 2.864 219 627 307 2,803 297 3,988 4,017 35 PORTSMOUTH DIOCÉSAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENTS For the year ended 31 DE￿mber 2020 13 ANALYSIS OFTRANSFERS BEfwEEN FUNDS UThreSM¢tedfU￿Is Restrlcted End¢fy¥ment Desi8naMd funds nd5 PartsmoLrth shaTeof Intere5teamed bv P&W(55 Fjrtd To thargetheGeDeril Fund ftythÈ reductiw Sn Pe￿5(￿defiCit pr¢th510 Tiansfer fvorn Catherln8ton rrustts Spirltu3lltyAdrftsor Budgeted iransferto LambethConferencelJnd CleiÈy¢onferencec05ts net¢fbudgetedtran5fertoconference fund TraDsfervfftPAE Fundlefiuttogenerèlfund 1,513 1301,(ml 14.875 11,0641 30L.CIIO &776 1167,7401 1462,1921 167.740 IS￿35) 166.227 301.000 Unre5trftttdfuThYs R•Stdcted E￿dDy}ment GerAral D8fvtEd 15 BUdget￿tranSFe￿f￿orn the Edutknon Rèstr]ctedfundtosupport theaLtfvlties of the educBt1L￿tea￿ 66,482 166.4821 TrJn5F¢r LrfpDLYyearun&r-5pend5 from Bulldln8ftepaiifvThd 74,391 Translerlfom Educèlon fundtOSUPPOrtP&wCS6Foperttionsl¢llo￿￿￿p￿rt1al repaymertoflo3nfrom WDBF I35,1￿) 35,0 Partsmouth 5harEof Interesteamed bYP&WCSG Fund 36.836 [36,8361 TochargetheGener4 Fund fortherethJcUoDln peti￿On defidtprovi51lln Totransferpart ofthe pruceedsfrom thes4eof Wickhamdcbelandfor tsse p&r5onEge 1mplowrentsas4pprowédbyÈ￿h(YsC(VJrtil tra￿lertrorn tstherkn8ton Trustforsp￿lt¥al1IvAd￿S( 1257,IlJOI 257.1 39,270 139.2701 Bud&etedtransterto Otrico repairfvnd Jd8etedtransferto Lambeth Corlerencelund Cleigyconferertcecosrs netofbud8etedtr3nsfertot0nfu￿￿ ￿lld Tran5fei ofincometo generalfund to oftsetrÈ1evanteynd5ture Tran*erof parsonage housestothefreehold proyertyfund underthePa5tG*èI IL(WI 1,064 8,776 172.098 tS5$72} 167.78BI 14&3381 2,255.000 12,Z55,QlJ)I 2,377.238 117L1061 12.046.338) 36 PORTSMOL￿￿l DIOCESAN BOARD OF FINANCE NOTE5 TOTHE RNANCIAL STATEMENTS Forthe year ended 31 Detember 2020 14 TANGIBLE FIXED AssEfs- Land and Bulldln85 Freehold Leaseho 8uildlngs Total 2020 AtCD51or Valuation AtlJanuary2020 sptssè15 Revaluatlo 55.631.443 IBS¥443 57,482.886 I175,1￿) I,W3.743 56,460,186 At31DecembEr3020 1,85L443 58.JIL629 ACcU￿13t￿ dopredat tiJanuaty2019 Char6pforthe year At310ecember202Q 453,418 153,418 36.790 36,790 490.2D8 4￿,2 N*lbuokwdluo at31 0preMber 20 S6.460.186 1,36L235 57.82L421 Nd bo(thvèlueat31 December 2019 55,631,443 1.298.025 57,029,468 All of the praperties in thp balance sheet are Ireehold 4nd a￿ vested In the PDBF, except for benefice houses whlch are vested in the incumbent. All woperties are held at markÈt Value and are subject to 8 flve-year rycle of survey and consÈquent repairs are charged as expenditure. The Diocesan Offlte it Peninsular FIou5e is leasehol 1167.7*11 48L256 213.353 2,030 1213.3531 4.a67 1.167.160 167,7dO 4,736,236 IM79,277 liJ93.5441 165.2Z7 155fi51 5.543.527 39 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTE5 TO THE FINANCIAL STATEMEMfs Fot the year ènded 31 Decemb?r 2020 19 SUMMARY OF FUND MOVEMENTS Icont4nuedl B3lance5at 31 DeceM￿r 2020 Ilanuary Incornin OutEdng r4scwc G3in5?nd J55•s rrar&f4rs ExF*ndablè Par5ona8e H￿5￿5 EdUcatiC￿ Endowment P8rrn5￿nt Elld0vmn￿￿tfu￿4￿ Stip￿￿$ Ca￿tal Fund 38.998,5 1,591,409 513fi09 28,212 39.512.514 ¥666,O32 45,411 7.579,219 404,486 164.124 30.744 30X.W) 4JY,7Z8 45,528 IW3 2.249 8313.947 461.0SA 176,127 32.993 Boyd ￿[hardSO￿TTu5t Cowtsnce Trust Crbwesstm 8en Au8 Diotesan HOu$ÈTrnSt F?wdry Bequest GlebeFund 61ebe Property Glebé HO￿S￿C0￿￿sefrVSt HaO":n£5t M Cufaty End Larnbert Loan FJAd i.ozs 24LOZF 217,641 3B.786 1,079.rfj6 2,595,458 4,43 1,256 13J86 2￿59 22,145 31 40,093 I,Ni,334 dl,741 1,337 171,703 4,377 185.466 40.137 54,708.112 36￿￿2 XA09J2S 52.Wl,229 115,7S8 301.WO Total Funds 77.386.220 9.772.687 18.$41.4701 l￿ffi3 80￿£6,11 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOYESTOTHE FINANCIAL5TATEMENT5 For the year endèd 31 De￿mber 2020 19 SUMMARYOF FLIND MOVEMENTS Icontinuedl 2019 Bèlancp% Bt Ijan￿ary 2Q akn(e5 at JI December 2019 Incom outs￿n8 r¢5ources rywurtr5 Tran5feT5 55e5 LIm￿tr￿t1dfll￿ds-GQrt1dI General Fund LEI5ehdd Property Freehold Pioperty FHPcap1t￿ Fund nrestthd fvnds-6enpBI 395.161 7,240,U73 P,804A371 122.238 6,511 140,4541 1.435010 137,745 I,a98.I25 11.301.$79 1,240.4Q5 14,373 055 2,255.000 95,129 L3,65i808 1.41Q8aO 55,8B2 111839) 7,853 227.022 Brown, DdE. 511veT BeqU￿t tircu5Chaiity Fund 010c￿arn C￿ferenceF￿nd CBr L￿fiFu￿d DIO￿an Lts3 Ftsr P4rswagesRepalis Fund CME Fund 2V14 SATI 31Jg1 li .888 229.328 3V L125 21￿ 26W 237 8.776 19,3E41 34118 458.032 359, 139,017 25,245 109.948 1180151 Iu,2321 11171 lQ4,479 562,511 34EJOI 144027 30.308 126,692 2L333 5.117 129.3051 S,06J 16,744 Wlntethotham Legacv Office Repair F￿d MI￿1￿ Fur Lambethcanferente Fund Evan￿]sM Fund 4109 IS,th91 100,082 655￿11 10.587 1875 L829 103,01 521,026 11.651 I13￿5￿1 1.064 Fund Catheringion H(wJ52 Fund 214QlO 9Ea046 (743921 34A76 1.129A51 a9, 149.137 3.330,YgJ 1113.638 1277,4281 IISg,7941 340.931 3.337,546 R¢strlrted Barclèy 8eQu￿t Au8 Fun¢ &lshop'5Lent pe31 753 15,7 78.388 94,iQ8 2.113 12CI.0711 6,7AO Parothial Loart Fund IY.911 .tsa LegaGv Jème5 Legacy Newchvrd￿S Fund TutTetHDU5e 121.674 17.627 2.174 20,899 L605 s8￿L% 1&5W39 L26&453 ID86 15,421 IW356 iooii 195B561 1015,29 39,107 su[r￿￿tFund 5tr3t*c Devdwment 78 78Q¥05 71 5ffi11 1183lQl 1.903,214 4108 1857N511 18,2fy11 13,T161 167.ml JJS.98D F&WC5GF Youth Coiban Fund EtkerslryClei6yfamil Eduotio Re&t¢i(ted Resowtlngminlsterial Ed￿(a￿On 33.AlS 315,954 975 Iq415 4923 4447 39,013 38Q142 16751 825W7 7,655 4467.357 47,093 49.823 3W273 11,L4q624} IIDI,4ts21 59*6 I67,7￿0 4736.236 I,k43,534 I171,U￿5 437.095 41 PORTSMOWH DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS FOT theyear erbded 31 Detember 2020 19 SUMMARY OF FUND MOVEMENTS Icontinuedl Bèlances at Balantes at ljawary I￿￿rnIT tgolnE Galn5and 2D19 re5uurixs reS￿r￿S Tran51Br5 ID55fS E￿nd&b[e Endowrnpnt nds P¥sonageH￿s￿s 40,663JQ5 I2,255,1￿) ¥995.9Q5 En¢owm2nt L477,166 I591MD9 PeTm&nentEndowrnenrfV￿s stipends capitsl Fund 5,Z30.517 Z,051,64Z 7.579,219 8e115 Loan Fun4 332A97 60,864 404486 ètyd R￿￿T￿SDTrTrVst IY6,709 27,415 164,124 COnst￿￿Trust 5.609 5,135 30.744 Cowe5St MBen Au8 142 ?D H¢use Twst 194,771 I27￿1 F4vJdry Bequest 31714 6,ItF2 38,786 Glebe Fund 964.112 48J39 148?381 114P73 Glebe Pr¢vwty 1658.598 159.1401 I559M5B Glebe Hou5ecOts8eTr￿t $,744 HaWln8Stf41 CurwEnd 1.071 195 1.256 Lamknert LoènFund 4812 2W7 171,703 5W7,759 94051 2.936,727 SU92,219 Total Funds 7￿￿Tr￿s0 S￿57,208 (9271,1ts1 3P4L7P5 77A86,22D 42 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTES TO YHE RNANCIAL STATEMENTS For the year ended 31 DÈtember 2020 20 SUMMARY OF ASSETS BY FUND 2020 Nxed A55¢ts TanEible Investments A55ets L￿￿ttIt￿O5 LlhTe5trlrtedIU￿1s-68ne[al 15.49 955 076 1,291811 12A71N291 16,149,414 Unvestrittedfu￿ts-De4EnatPd Brown, D(￿gtr Beouest 36049 14Y041 4545 Fund Dio[£￿an Confere￿¢ CarLoan Fund thor￿all Loan Fund arswa8es R&pa1rFund CME Fund vdby B4uesi nt*Tbotham Lwty otficePepalr Fun th55th ThJnd Lambéthconference Fund E￿ngeli5￿ Fund 2.116 136 812 9,867 2,262 36,812 2&5,877 471983 2.184 176A29 I￿￿00) 144,093 649,4A2 33Q284 093 31￿16 138,146 34,917 154.303 1141571 56.OUi 51412 496,818 12.715 1.495 lQ8,413 496￿18 12,715 Fund Catherlrgton HDuseFund 5wralnabS11ty Fund 80.494 {I,ZZ21 ¥0094 1.231,197 1.222.419 LO78,2YF 4,184,756 Re5td(tEdfvnds 5,lQ5 Il￿,555 1,643 1¥S641 6.74B J.591 8enAugFund Bishop's Lent 13318 247 Ja273 253 13.571 2d7 ts,273 Harri50n Paro(hil Loan Fund J19A57 22.179 L841 1.29fj 22.332 Legac W￿￿ChUrCheS F￿nd Turfet Mouse Fund Suffè%hFund I￿27.5714 {LIYJ,174 L218.400 9.934 524 5,195 IlQ,458 5,1 4110￿5 39.1( 1.677027 P&w￿F I.￿7,707 I1,868.6￿] C¢Kban Trust 41064 41516 413MOI EckersleyCleTEYfamilies Educatlon 359.071 44Jao 1.864,031 194,lJ41 14Qi7571 ¥aG7.160 Resourcirt8 Nthrmsterial Educa￿On sty¥te8icDevdatxnent 127.2841 1229&3È91 145.9551 5.543O2S 5.641.997 2,200,218 43 PORTSMOUTH DI0￿$AN BOARD OF FINANCE NOTESTOTHE FINANCIAL5TATEME￿5 Forlheyear ended 31 DE¢ember2020 20 SUMMARY OF ASSETS BY FUND Icontinuedl NxedAs*ts cu￿ent ee Ta￿lhI0 InkYStrnents A55Pty Asse Eyndable E￿(JWffl￿￿tfunds Parsonage Hou5P5 E¢kncatSon End(rknnent rmaneDt End¢>Lyrnentfwd5 StWEnd5 Capital Fund 40,124A66 1611.9511 I875￿20 39.511515 1.666,fk12 IY0312 407iUJ 3Y6,994 185,834 5747DS 64,103 19,7C61 1333.QL¥JI 8J1i948 461,W7 L76.12B Boyd RichardsonYrus¢ ConstanceTrust Cowesstm BeTh AUÉ (Kesan HOuseTluSt FaWdrytyu￿t Glebe Fund Glebe Piopertv Glebe HOUSÈ Cott88eTtU5t HaWlngSt M Curacy End LambertLoa 965 152,880 41,160 A.22YW4 511962 4,702 257 61 IAL8531 285 i,Q27 41,445 L.141,U4 2QQ,ODQ 175.9ZI 4,742 1,337 1453¢ 35?41 11.105,1175 4Q,157 3,796 61¥574 185A66 40,138 54,708,115 fjlebecapital s31￿00 TotalFunds 57.821A21 *￿,2￿,6L￿7 15,102,8181 0586,111 PORTSMOUTH DIOCESAN 8OARD OF FINANCE NOTES TO THE FINANCIAL5TATEMENTS For theyÈar ended 31 DecembeT 2020 20 SUP41MARY OF ASSETS BY FUND Icontinuedl 2019 F￿?dAS5ets Tan$1￿* IDvesiments N•t ASSets UnrestrirtÈd ￿nd5-Gen￿ra1 JS,54&611 1.763.496 Z47,6081 16W29ts1 1&42O.209 Unre5tri¢ted lund$-Oe516nated Browri. ￿￿$11¥er Bequest tircvscharlty Fund Dioce￿￿ Co￿121tncc Fut Car Loan Fund t*oce50nLoa Fu Parsonages Rep¥1 Fund E Fund 34,094 119031 82,191 L989 136 27,901 17.9ty1 AS05 584,454 446.049 121,9431 199.B481 144027 $62.511 345.201 144127 V3lpy Bequest WSnterbothaffl Lp83CV Officé fiepalr Ftsnd Ssion Fuffil Lambeth Conférgnte E￿ng￿ls￿ Fund 32,iori 14432 s￿30¥ 126,692 IL7,6361 51384 521,QZ6 S21￿2$ IL651 IA45 IA95 Fund Catheilllgioll House Fund 34476 124,636 624456 34A76 1,129A51 3,J47,546 1.154,C87 2 713,090 RÈstrtLtÈd knnd5 8ardaVBEry￿t EeTr Au6Fund 5hop'5 Leni Appe31 Chrbtian HealitysFJn Hafriion p¥rochia1 Loan Fund Hucksiepp 4.775 99,672 L491 15.561) 6,266 6.740 246 IB,133 4740 13,133 122m8 746 123,848 l?mesLosaty Newchurches 153 1.223A21 41632 IZ65N53 TU[retH￿Se Fund Surne%llFuTh Pa5totalFund P&WtsG Youth 523 IW366 its￿11 I￿5￿94 39,LQ7 11 4￿7,598 I*W69S 11.021.548) Corb3nTiust Eckersle¥aer8yf3milies Edutsbon 31216 345,￿2 7,797 39.D13 380.1 1,059,949 I416,5￿) RosowclnE Min15terial Ethcalon Sttste85c D￿E40prnent 1167.7401 95h561 332 1167,7401 95,4561 4736,236 4615 958 1¥438.Q54 45 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIALSTATEMENTS For Ihe year erkded 31 December 2020 20 SUMMARYOF AssErs BY FUND Itontinuedl Ame CLvrert Nex TI￿l￿e Assers Llabifths Assets fLmds Pars￿￿EeN¢￿s 39.61Q851 I￿4￿521 J8,594Y05 Educalon EndOwrn￿t 968. ,591A09 P8￿￿￿￿￿¢￿￿m¢rttfUTrdS Stlpends Capltal Fund 7.696,515 574.704 1692, 7,579219 Bells Loan 35L4S? 53.019 Bwd RichardsonTrust 173,83 19.7061 164ts4 conStan￿TruSt 32,562 {LW81 30.744 Cowe5St MBen Aug Hou5É Trust IIIM531 227,641 FawdryBequ*t 38,501 3<786 GlebeFund J,207.259 1128J631 Lf&y*tyy6 612bePrwrty 18YO.LtyJ 553,530 IY5, 4594450 GI*È Hou5pCottJ¥eT1￿t 4A9a H3￿[nIst￿cUraty EtMI 1.176 LambertLoan Fund 135.924 35. 17L703 4IA80.8S7 11,4fL4,574 69Y,798 51854229 TotalFunds 57,029.465 2Q.4*118 1634,978 12.774J441 77WI2ZQ ZI DESCRIPTION OF FUNDS Unro5tr1ded funds. Genernl General Fund Leasehdd Property Freéhold Property FHPCapltal Fund DBls revenue opera￿On$ property forthe Charl￿￿1 tswn use Hou&ng otherclergv Provislon of clew hou￿￿8 Ur*ÈStrlrted funth. Des*nated Brown, Dol& Sllv¥ Bequest Circuscharlty D￿￿80 ConfereTr￿ Fund Cèr Lo>n Fund DIoc￿n Loan FunLI P3rsona&￿ Repairs Fund pa&toral Fund To offset DBF offtice costs Forsupends To Dff5etcwi of dlcttsan Cler8y confe￿rKe nsto D6Fem￿Oyees LoBn5to P3rishes Re￿1[and m3inienance of par50nages Managementof money In accordancewth the Pastoral MeasurÈ 1983 In servi￿ educatyon ard training Pension Support for£ler8y Forsfipends Ministerlal Trainin8 Tran$1tion Fund v3lpy 8eque5t 46 PORTSMOUTH DIOCESAN BOARD OF FINAN NOTES TO THE FINANCIAL STATEMEMfs For the year ended 31 Decernber 2020 nterbotham Lega offi￿ Repair Fund sirètpgic Development Fund Mission Fund Larnbeth Conference Fund E¥angeliw Fund 8uildinB Repair Fund Catheiington House Fund For DBF'S own purp05È5 Rep8irand mainte.nawe of Office Equipment For activitie5 specifically i￿ntified In the 5rrate8ic plan For outW3rd focu55ed Mission artivilie5 To offset the next Lambeih confereTrcecwts For evangelismwithin the dlocyse Addition31 repairworkoTh Diocesan prvperties For workof the Diocesan SpiritualityAdviger Ta aKI Iiansition ReStrittÈd funds rclay Bequest Ben Aug Fund Blshop's LentAppeal Christian Heilin# Fund Harr150n Parochial Loan Fund H￿ks[￿pp Lepcv Jatne5 Legacy New Churches Fund Turrei House Fund Surrexit Fund P&WCSGF Youth Development CorbanTrust Ftsnd Ecker51eyClergy Fatnilks Education Restiicted Fund Rèsourcing NAlniSteria1 EdU￿tIon For'new churche5' buildin8$ Forstlpends Bi5hop'5anllual charity ippeal SupportOrdiDands 5tspportOrdin3nds For'new chvr£hes' buildin85 Fof church building wojetts Foi wurh development IncO￿￿froM school governor5, fvrKIs Forwotkwith theyoung people of th2 diDCÈSÈ Forpoor and nee* in Port%mouth St Albans parish Forthe 5VPPOrt of cler8yafidtheirfamllles Educati￿ within the diocese of Port5rn0Uth Grants re￿IVedt0 fundordlnand training Expendable Endowmentfvnds Par50naÈèHou£es Housing Ir￿umbe￿t5]prfests In charge Or Ca rmanent Endowment lund$ Stipend5Capital Fund Bells Loan Fund Boyd RIC￿r￿onTrU5t Con5tanceTruSt Cowes St M Ben Aug Di0￿san HouseTrust Fawdry Be￿￿eSt Glebe Fund fjlebe Property Glèbp Hou£e CoitageTr￿st Haylin8 St M Curaty Ed Lambert Loan Fund Educ*ion Endowmw)t Foi stlpends Loafi5 to parishes In Portsmouth Deafiery For DBF'sown pufp(Ises To olfsèt DBF office costs For5tippnd Icawes's Maryl Upkeep of DAFoffites & payment of staff Ftsr cler£ywidows & fiFJFgenpral purpos Glebe funds hekl on deposit Glebe held for investmènt and hDusin& For DeF'5 own purposes Forstipend (Ha￿1Th8 Island) Loansto clewand PCC5 L4,563 50) 679 4,8 12.001 2,2(K) 630 21,3(Kl 47 PORTSMOUTH DIOCESAN BOARD OF ANANCE NOTE5TOTHE FINANCIALSTATEMEwf5 Forthe yeav ended 31 December 2020 22 CAPITAL COMMITMENTS & OPERATING LEASES At31 December 202D, the PDBF had capital expendlturÉ ¢omrnitments authorised butnot cantractedfor of £MIL 12019- ENILI and contracted for but not yet due of £NIL12019- £NILI. Totsl commitments under norkcancellable operating le3ses are as *ollows: 2020 Operatknglea￿P3Y￿￿e.' I￿n IveJr IA590 15,55D In 1-5year5 25,460 42.149 58,839 23 POST BALANCE SHEET EVENTS AND CONTINGENT LIABIUTIE5 There are no post balènce sheetorcontlngent lièbilitie5 at the balanre sheet d8te. 24 PENSIONS Portsmouth DBF ￿rticIpate5 in the Church of England Funded Penslons Scheme for stipendiary dergy, 2 defined benefit penslon scheme. This scheme 15 admin15tered by the Church of En2land Pensions Board, whlch holds the assèts of the schemes sep3ratelyfrDm thD5e of the Resp¢nsiblo Bodie5. Each partlcipating Responsible Body In the Scheme pays contributions at a common contributlon rate 8pplied to penslonable stipends. The membership figures that we hold as at December 2019 and December 2020 for Portsmothh DBF are set out In the table below. These are used as part Of the Board's calculation Df the deflclt contributions in payrnent at each yeèrond. which in turn feed Into the FR5102 calculations, so are prO￿ded here for reference. December 2020 December 2019 Number of members at this Responsible Body The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Thi5 means It is not posslble to attribute the kheme's assets and liabllities to ezch specmlc Responsible Bodyj and thls means contributions are accounted for as If the Scheme were a deflrted contributlon scheme. The pensions costs charged to the SOFA In the year are contributlon5 payable towards benefits and ÉXpÈn5￿ accrued In that vear12020.. £629,020, 2019.. £721,972]. plus the flgures highlighted In the table bdow as betng recognised In the SOFA glvlnK a total charge of £1,000,020 for 202012019.. £2,138.9721. 103 iio A valuation of the Scheme is carrfed out onee every three year5. The most ￿￿ent kheme valuation ctrmpleted Was carried out 8t as 31 Decernber 2018. The 2018 valuatlon reve?led a deficit of £50m, based on assets of £1.818m and a fiJnding tèrget of £1.868m, a￿essed using the followln8 a55UmPtion. An average discount rate of 3.2% p.a. RPI Infla￿0￿ of 3.4% p. 14nd pension increases conslstent with this). In(￿0$e in pensionable stlpend5 of 3.4% p.a. 48 PORTSMOUTh DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS For the year ended 31 December 2020 Mortality In accordance. with 95% of the S3NA VLt3bles, with allowance for Improvements in mortallty r3tes in Ilne wbth the CM12018 Èxrended model with a long-terrn annual rate of irnprovetnent of 1.5%, smoothing parameteF' of 7 and an init131 addition to mortallty Improvements of 0.5% pa. FDllowng the 31 Decernber 2018 Val￿tiOn, a recovery pl4n was Put in place until 31 December 2022 and the deficit recovery contributions las a percentage of pensionabje stipendsl are as set ovt in the tsble below. % of pensionable 5tipend5 January 2018to Janu?ry 2D21 to [le￿rnber 2020 Deiember 2022 Deficit repair contributions IL9% 7.1% As at 31 December 2018the deficlt recovery contributions undÈr the recovery plan in fortr at that time were 11.9% 01 peDslot￿blt stipends until December 2025. At 31 Decemljer 2019 and 31 December 2020 the deficit recovery tontrlbutlons underthe recovery plan in forte were 85 Set out in the above table. For sen¢or offite holders. pen￿onable 5tipend5 areadjusted In thecalculations by a multiple, as Set out in the Scheme's rules. Section 28.IIA of FRS 102 requires 8greed deficit retovery payments to be recognised ès a liability. The movement in the balaTrtr 5hÈÈt Ilability over 2019 and over 2020 15 Set out In the table below. 2020 2019 Balan￿ sheet liability at l January 692,000 2,029,WO Defltit contribution paid Interest cost Iretagni5ed in SOFA) Rem3iningchan8e to the balance sheet liabSllty' Irecognised In SOFA) -307,000 -297,1 6,OQK) 40,iWO -58,000 -1,080,000 Balat)ce sheet liability at 31 December 333,(¥JO 692,000 Cornprlses change in 3BrÈÈd deftclt recovery plan and change in dlscount rate and 35SUrnPtions between vear-ernds. Th15 liability ￿presefit5 the present value of the deficlt contrlbutions agreed as at the accountin8 date 8nd has been valued u5ingihe *ollowing assumptions set by reference lo the duration olthe deficit recovery payments.. December 2020 December 2019 Deceynbw 2018 49 POftTSMOWH DIOCESAN BOARD OF FIt4ANCE NOTES TO THE FINANCIALSTATEMENTS For the year ended 31 December 2020 Dlstount rate 0.2% l.l%pa 2.l%p Price inf12ltrn 3.1% 2.8% pa 3.l%pa Increasè to total pertsiangble payroll 1.6% 1.3% pa 1.6% pa The legal struciure of thÈ scheme 1$ such that if another Re5ponslble Body fails. Portsmouth DBF tould become re5ponslble for paying a share of that Responsible Bodtys pÈnsion liabilities. Portsmouth DBF IDBSI partiupates In the Defined Benefits Scherne sertion of CWPF for lay staff. The Scheme 15 adrninistered by the a)urch of England Pensions Board. which hdds the 8ssets of the scheme separately from those of the Employer and the other partlcipating employers. The Church Workers Pen5i0n Fund has a settion known a5the Deflned Beneffts Stherne, a deferred 8nnuity section known 35 Penslon Bullder aasslc and a cash balance section kno￿ as Penslon Builder 2014. Oefined Benefrts Scheme The Defined Benefits Scheme l-D8S-15ection of the Church Workers Pension Fund provide5 bonefits for lay Staff based on fln31 pensionable szlaries. Forfunding purposes, DBS is dlvldèd into 5ub-pools In respett of eath participatlng employer as wdl as a further sukFKK)ol, known a5 the Life Rlsk Pool. The Life Risk Pool exlsts to share trrtain rlsks betwÈen employers, rncludingthose re13tln8 to mortality and post-retlrement investment returns. The divlsion of the DBS into sub-pools Is notlonal and 15 forthe purpose of calculating ongolng contrIb￿l0￿s. They dts ntrt alter the factthat the a55ets of the D65 are held as a singletrust fund out of which all the benefits are to be provlded. From time to time, a notlonal premium Istr8n5ferred Irom employers. sub-poo15 to the Llfe Risk Pool and all pensions and death benefits are paid fiom the Life Risk Pool. The scheme Is a tnulti-employef scheme 85 desuibed in Sectlon 28 of FRS 102. It is not posslble to attribute DBS a55ets and liabilities to spetific employers, sSnce each emplayer, through the Life Risk Secllon, is exposed to 3CtU8rial risks 8ssociated wlth the current and former employees Of other entitl￿ participating In DBS. This means thèt ¢(￿tributIOnS are attDunted for as if DBS were a defined contrlbution sthÈmÈ. The pensions costs charged to the SOFA durlng the year are contrib￿lOn$ payable towards beneffts and expenses accrued Inthat vear12020.. £106.081, 2019.. £297,000) If. followlng an artuarlal valuation of the Llfe Risk Pool, there Is a surplus or deficit in the pool. further transfers may be mode from the Ufe Rlsk Ptrol to the employe15' sub-paols, or vice vers8. The amounts to be transferred land their311ocation between the sub-poolsl wlll besettled bythe a)urch of England Penslons Board on the 3dvlce ofthe Actuary. A valuatlon of DBS 15 carried out once everythreeyezrs. The Mostre￿￿t1Y￿naliSed was tgrried out as at 31 De￿mber 2016. In thisvaluation. the Llfe Risk Section was shown to be In delicit by £2.6m and £2.6m wa5 notionally transferred from the employers, sub-pou15 to the Llfe Risk Section. This inCTea5ed the Employer tontribvtions thatwould otherwise have been payable. The over311 dellclt In DBS w35 £26.2m. A valtsation as4t 31 December 2019 was under way 85 at 31 December 2020. The Contributions agreed at that Valuation wlll be refiected in the figure5 di5d05ed in the 2021 accounts. Follawirtg the valvation, the Employer ha5 etitered Into an a8reement with the Church Workers Penslon Fund to pay expenses of £8.600 peryear. Te8eher5' penslon scheme (Trs) 50 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTES TOTHE FIMANCIALSTAYEMEMfs For theyear ended 31 De￿mber 2020 Tht PDBF made contrlbution5 to the TPS on behalf 014 employees who had prevlously been ttachers. The TPS IS a Statutoiy, tontributoryt deflned benefit scheme, governed by the Teacher.E' Pension5 ReEulatiohs120101 and, from l April 2014, by the Teachèrs, Pension Scheme Regulations 2014. Membership15 automatlc for full- timeteacber58nd from l Janu3ry2007. automatic for teachers in part-timE employment followlng appointment or a thangeof contract, although they ae able to opt out. The TPS 15 an unhjnded schetne and member5 contribute on a 'pay 35 you go, basts, thÈse contribution5 along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are fKid by public funds provided by Parllament. Not less than every four years the Government Actuaryi using norm818ctuarial principles. condurts 3 formal artuari81 review of the TPS in accordance wth the Public Service Pensions (Valuations and Employer C05t Qapl Directions 2014 published by HM Treasury. The a5m of the review i5tv spec1fylhe level of future contributions. Actuarlhl scherne valuations are dependent on assurnption5 about the value of future costs, d￿]gn of benefit5 and many other factors. The latest zctu?rial valuation of the TPS wa5 carrled a5 at 31 March 2017 and full detai15 are available on the Governtnent webslle at= htt www. ov.uk ovemmen collections teachers- ension-5cheme 25 RELATED PARTY TRANSACTIONS The Portsmouth DIOC￿?￿ Council fer Social Responslbility (P￿RI is i Separa￿ charitable limited companv. Staff engaged in the artivitles of PDCSR are Èmployed by the PDBF and a contribution toward5 their stzff costs was made bythe PDCSR for £102,73212019,. £102,732). The PDBF h35 a150 SUPPOrted the work of the PDCSR for sevÉral years and in 2020 prowded free ￿se of office space. 51 PORTSMOUTH DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENTS Forthe year ended 31 December 2020 26 FUNDS HELD AS CUSTODL4N TRLISTEE The PDBF arts 85 Diocesan Authorlty or custodian trustee for manytru5t funds by wrtue of the Pèrochi81 O)urch Counclls (Powers) me.asure 1956 and the Incumbents and ChurchwaTden5 ITrustsl Me8suie 1964 where the managing truste@s are parochièl Church tt>uncils 2nd other5. Assets held in this way are not aggreg3ted in these financial st8tement5 as the PD8F does notcontrd them. The financlal a$5ets in thls way may be summarised a5 fDIlD￿ls'. 2020 2019 C8F Investmenr Fund inctsmÈ Shares 5,603.830 5,220,065 CBF Investment Fund a¢cutnLlation shar 80.455 96,826 CBF Property Fund incornesh3res 742,779 782.656 CBFGlobal Equity Fund 271,003 227,693 CBF Fixed Intere5tSecurltles Fund Share5 66g,323 646,232 CBFCOIF Inv&*ment5 210.659 203,899 Other unlttrust uni IS,127 18.117 UK Equity ho￿lThg5 12,458 11.769 UKGilt-edged stocks 79,320 79,820 other Fix8d interest stock 8,137 8,157 For¥gn Equltie5 7,482 7,368 Deposlts & Cash at Bink 1,755,219 1,503,527 Netcreditors 12,7201 12,7801 Total 3ssets held ascu5todlantrustee 9,454,011 8,802,829 27 ANALYSISOF CFIANGE IN NET DEBT Asari ASa13L%t J&￿ary D￿￿Mb￿r Other 2020 Cash ￿d(ash equ1vdlEnts 2,￿￿￿.427 3,461,315 5,556.752 LO￿51allIn￿du￿ ￿4th1n¢￿Èyear 140,0601 Loansfalllr4gdue afterrnorethartoneyear I￿.120> 11.9S9,9401 Torp 1,972.247 1,504,385 3.476,632 52