2024-12-31-accounts - Portsmouth Diocesan Board Of Finance

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ANNUAL REPORT AND FINANCIAL

STATEMENTS

For the year ended 31 December 2024

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company number - 226466 Registered charity number 249256

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

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TABLE OF CONTENTS ................................................................................................................................................ 2
Legal Objects ............................................................................................................................................................ 4
Strategic Aims .......................................................................................................................................................... 4
Activities & Achievements for the Year .................................................................................................................... 5
Future Plans ............................................................................................................................................................. 7
Financial Review ...................................................................................................................................................... 8
Principal Risks & Uncertainties .............................................................................................................................. 12
Structure & Governance ........................................................................................................................................ 15
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Administrative Details ........................................................................................................................................... 20
Independent Auditors 3
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A large print version is available on request from Jane Dobbs

Email: jane.dobbs@portsmouth.anglican.org

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Foreword

It is a pleasure to commend the Annual Report and Financial Statements for the year ended 31 December 2024. I do so with a profound sense of gratitude for the character, focus and quality of corporate life within the Diocese of Portsmouth.

The past year was lived in the context of global and regional uncertainty: war has been waged on East European soil; a cost of living crisis continued to make life difficult for many of our parishioners (especially the most deprived among them); while political change in the United States has upnot least a sense of security and high esteem for truthful speech.

It is in this febrile context that our people and communities have demonstrated their Christian commitment, resolve, and character.

The accounts reveal the extraordinary financial generosity of those who -East Hampshire and the Isle of Wight. Centred in Jesus Christ (or anchored as our Cathedral community puts it so visually) a community of disciples has kept its nerve and has continued to serve generously, courageously, and sacrificially. I give thanks for the character of the diocese.

nd Diocesan Board of Finance have kept a steady focus on the drive towards financial sustainability and the interwoven strands of our financial strategy. In terms of culture, an enabling diocesan team continues to build the confidence and trust of the diocesan community: not through words, but by financial practices and disciplines that exemplify grip, transparency and sound organisation. Or, put simply, by being worthy of trust. In 2024 we began to reap the benefits of robust disciplines of financial reporting, monitoring, scrutiny, and control introduced in 2022-23. We have not come through our financial challenges: but we now have a much clearer picture of those challenges. In early 2025, the diocese welcomed a new Parish Share Scheme. Early results are encouraging. The design of the scheme - its patent fairness, transparency, and the vital way it expresses inter-dependence and mutuality within the diocesan community has gained a broad base of support. I am most grateful to Sue Jones and her team for their effective and impactful work in this area, and to Philip Poulter for his readiness to meet and support our faithful band of parish treasurers.

In 2024, under the leadership of Chris Parker, we have continued to build a culture of generosity and to build the confidence of clergy and lay leaders in speaking about giving as a part of Christian discipleship. Generosity Week, in which we draw on resources provided by the national church, is becoming a fixed part of diocesan and parish life.

Through Chris treasurers and deliver extraordinary results. There are approximately 3,000 givers using PGS to give to their parish, 54% of whom Gift Aid their gift (a return which places us 1[st] nationally). 87% of givers have chosen to enable their gift to be increased annually in line with inflation.

As I commend these accounts for information and scrutiny, I would like to put on record my appreciation for Elaine Coe, Head of Finance and her team for their tireless work in supporting ministry and mission.

The Right Revd Jonathan Frost Bishops of Portsmouth

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

The Trustees, who are also Directors for the purposes of company law, present their annual report, together with the audited financial statements, for the year ended 31 December 2024. The directors/trustees are one and the same and in signing as trustees they are also signing the report in their capacity as directors. This combined report satisfies the legal requirements for:

a Trustees Annual Report under the Charities Act 2011

Legal Objects

the work of the Church of England in the Diocese of Portsmouth by acting as the financial executive of the Portsmouth Diocesan Synod.

The Diocese of Portsmouth covers principally South East Hampshire and the Isle of Wight.

Strategic Aims

During 2024, we formally approved our Vision and Strategy for the future. Our Vision is for our diocese to become a rejuvenating community [one that rejuvenates itself and seeks to rejuvenate others] of Jesuscentred [learners and followers of Jesus, with our actions shaped by him] , Kingdom-seeking [including our devotion to God, our passion for social justice, our care for Creation and fellowship with each other] disciples. [we are committed to our faith, and want to keep on becoming more like Jesus}.

Our Strategy (which we refer to as our REJUVENATE strategy) aims to place children and young people at the heart of our planning, and to reduce the age profile of our congregations. It also seeks to achieve three things:

To REVIVE the spiritual leadership of the diocese, so our lay and clergy leaders are vibrant disciples, whose faith is deep and attractive to others;
To REVITALISE our parishes, developing a culture where there are clear pathways for the unchurched to become new disciples; and
To RENEW the Church, seeking to plant new congregations and create new worshipping communities in areas where we have little effective presence currently.

This Strategy is effectively communicated in the following diagram:

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Activities & Achievements for the Year

The year

for an application for strategic funding from the national Church of England in the Autumn. The success of strategic plans. This will allow us to employ the people, create the projects and revamp the buildings to help our parishes, chaplaincies and church schools to thrive.

Among the areas that will be funded will be:

Under REVIVE: a series of Cairns, which are local networks of clergy and lay leaders who will eat, pray and study together regularly, to help deepen their own faith;
Under REVITALISE: funding for parishes to develop their pathways to discipleship, which will help them to create brand new disciples;
Under REVITALISE: mission projects in specific areas of our diocese, such as Paulsgrove and Leigh Park, which aim to revitalise existing congregations with young people and families as the heartbeat of their congregations;
Under REVITALISE: training in youthwork to establish expertise and create new leaders to work with children, families and young people;
Under RENEW: brand new church plants, in urban Portsmouth and suburban Fareham, including moving towards a brand new church in the major new development of Welborne.

Among other achievements during 2024 were some progress on efforts to combat climate change by reducing carbon emissions. A new team, partly funded by the national Church, was created to drive our

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

diocese towards net zero carbon, with our cathedral and diocesan offices both achieving a silver EcoChurch award, meaning that our diocese overall merited a bronze Eco-Church award.

Tearfund appeal to offer humanitarian aid to those suffering in the conflict between Israel, Gaza and Lebanon. The Easter story was told on the streets of Havant by local churchgoers, and Cbeebies star Gemma Hunt led two pirate-

It was a significant moment as HRH Prince Edward celebrated the formal re-opening of Newport Minster, at the end of a £2.6m refurbishment and redevelopment that had seen the minster closed for eight months. This was the final phase of the development of the historic church that began in 2006. HRH the Duke of Edinburgh had been the royal patron of the campaign to renew the minster and took part in the re-opening service on May 1.

Bishop Jonathan paid his first visit to our Anglican friends in Ghana, who this diocese has been linked to for 40 years. He spent 10 days there, visiting all 13 of the bishops who lead the Anglican church there, as well as churches, schools and communities across the country. He also led the annual pilgrimage to the Taizé Community in France for young people, who came from two Isle of Wight schools Christ the King College in Newport and the Bay CofE School in Sandown.

The bishop continued to appoint new clergy to roles throughout 2024. Several stipendiary clergy were appointed to posts on the Isle of Wight, reducing the number of vacant posts significantly. And for the -house programme over the previous 12 months. This meant the bishop ordained 18 deacons in total in the summer.

Bish new worshipping communities within schools. They may be voluntary or after-school groups that can worship, pray and study together. There are 40 pilot Flourish projects across the country, with four of them within our diocese, in Horndean, Sandown and Bembridge.

Diocesan staff were also heavily involved in a campaign to keep three Isle of Wight church schools open, after the Isle of Wight Council earmarked them for closure in September because of the number of surplus places across the island.

Education

The Diocesan Board of Education has now become a Charitable Incorporated Organisation as a result of the Diocesan Board of Education Measure which came into effect at the start of 2022. Registration with the Charity Commission was completed on 12[th] January 2024. The employment of the education team transferred to Portsmouth and Winchester Diocesan Board of Education (DBE) from 1[st] July 2024, and income and costs relating to the team ceased being processed through PDBF from this date.

The DBE is linked to the DBF through shared members but it will be independent of its governance, finance management and policies. Alongside Winchester DBF, the PDBF is a grant giving body into the DBE and supports with office space and other services under Service Level Agreements.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Recruitment of senior leaders across all schools (not just CofE) continues to present challenges in the current climate. We have been taking steps to engage Chairs of Governors in preparing for a change of leadership and planning for a range of outcomes.

nt in national priorities like Net Zero Carbon initiatives, anti-racism and other areas has received endorsement. The work around the national pilot for the Growing Faith Foundation has continued during 2024.

Ministry and Discipleship

The end of 2024 saw an expansion of the Ministry and Discipleship Team, under the new interim Director, Revd Andrew Hargreaves, in post from 1 October 2024, to include team positions of 'Lead for Revive' (Clergy Wellbeing, Continuing Ministerial Development and Lay Discipleship), 'Lead for Revitalise' (Parish Mission and Discipleship), 'Lead for Renew' (New Worshipping Communities, Church Planting and Pioneer Ministry), a 'Children's Youth and Families Officer', a 'Lay Ministry Discipleship Officer' and a 'Team Executive Assistant', to add to our 'Lead for Vocations', 'Assistant Lead for Vocations' and 'Anna Chaplaincy co-ordinator'. These were funded by a successful £5.3million Strategic Ministry and Mission Investment Board (SMMIB) grant with generous assistance from the PDBF to supplement the successful grant.

These posts and team will help us to fulfil our vision to be a rejuvenating community of Jesus-centred, Kingdom-seeking disciples from which our strategy to deliver the vision has Rejuvenation, children and young people, as the intentional focus of everything we do. Our primary strategy to have congregations full of children and young people is to have flourishing churches, with our strategy themes of 'Revive', 'Revitalise' and 'Renew' to help us to do this. The expanded Ministry and Discipleship Team will be key in supporting the implementing the new vision and strategy. Building on last year's report we have continued to raise up Ordained and Lay Vocations from the discernment to the training phase and beyond, as well as providing clergy and lay training and support throughout the whole of the year. Much of this was previously overseen by Revd Anthony Rustell, who left for a new post, following 10 years of faithful and fruitful service.

Community Engagement & Impact

Churches continued to offer support in a variety of ways including food banks, cafés, coffee mornings, friendship groups, bereavement support groups, toddler groups community hubs etc. Chaplains have also been active across a variety of sectors in our diocese in a variety of work settings including hospitals, diocese but more widely in Hampshire also.

Future Plans

Our future plans focus on growth in mission as we work towards becoming a rejuvenating community of Jesus-centred, Kingdom-seeking disciples following the approval during 2024 of our revised Diocesan vision and strategy. Our missional work will have an emphasis on growing younger, and reaching more children and young people. The plans continue to build on the Deanery plans that were part of the 2022 Road Map, that have been developing and evolving since.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Our priority to Revive the spiritual leadership of the diocese includes the creation of Pilot Cairns where invited clergy will use specific resources to move their parishes from maintenance to mission. We are also putting in place wider structures for all in leadership roles including peer group Cairns, renewed learning opportunities, better wellbeing provision and clearer expectations to enable us to fulfil our vision of making Jesus-centred, kingdom-seeking disciples.

Our priorities to Revitalise include inviting all parishes and deaneries who are involved with Revive, to develop their own vision and strategy to create pathways into discipleship to grow their church. Alongside this we will encourage further ministry in partnership with schools, for example:

We will continue pilots of the Church of England Flourish initiative, to create worshipping communities in schools
We plan to establish the next cohort programme of Choir Churches, using music as a means to engage with the Christian faith.

Our priorities to Renew include:

Continued support for significant investment in Haven Church Gosport, North Gosport, and Newport
Implementation of a strategic plan for church planting on the Isle of Wight, which has started with major investment in Ryde.
New strategic plants on the mainland, with work towards these starting in early 2025.

These plans have been made possible as a result of our successful application for major grant funding from the Church Commissioners via the SMMIB. Alongside that we will be rolling out our revised parish share system in 2025 after significant consultation during 2024 to shape this.

In order to provide the right ministry resources we will continue to develop a pipeline of leaders, both lay and ordained, and including children, families and youth workers.

Financial Review

Financial Performance

The operational financial results for 2024 reflect another challenging year before taking into account revaluation of property assets and investments. We continue to operate in an environment where declining parish attendance and giving, and significant pressures on parish costs, as a result of sustained high levels of inflation, coupled with the desire for parishes to invest in local ministry, leads to continued pressure on parish share payments. Despite this, we have seen an increase in cash collected through the parish share system and have continued to invest in clergy recruitment in order to encourage growth in mission and ministry for the future.

We wish to express our gratitude to all parishes for their engagement with their parish share payments; during 2024. We received a payment from each and every parish in the diocese.

Costs relating to property repairs and maintenance have continued to run at unprecedented levels and include works preparing properties for clergy appointments; works seen as vital in acknowledging our commitment to clergy welfare.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Balancing this there has been an improvement in investment valuations during the year, and we have benefitted from the sale of a property at a surplus of £97k.

The overall surplus of £1,644,645 has increased from the previous year (£1,565,350), largely driven by the revaluations of investments and property. The land values have remained steady during the year.

Income for 2024:

During 2024, total income generated increased by £225,224 to £8,315,305 (2023: £8,090,081). The majority of the increase was seen across general funds which increased from £6,767,749 to £7,097,767 and included an uplift of Parish share contributions of £187,489; increasing the collection rate to 86.4% (2023: 84.4%).

We also received an increase of £19,929 in Low Income Community (LINC) grant. This is directed towards those parishes with the highest levels of deprivation to support with mission and ministry.

Restricted income included grant income from the Strategic Development Fund (SDF) and the Strategic Mission and Ministry Investment Board (SMMIB) towards strategic projects totalling £521,335. We commenced a new project in Ryde on the Isle of Wight in early 2024 under the SMMIB funding.

We have continued to generate rental income from properties during clergy vacancies, and investment income has benefitted from the increase to interest rates during the year, offset by the use of funds held on deposit to support with operational cashflow.

Expenditure for 2024:

Resources expended across all funds before any transfers, gains and losses on disposal or revaluations, increased by £302,630 to £8,825,127 (2023: £8,522,499). Recruitment of stipendiary clergy to key posts continued throughout the year as well as continued focus on increasing numbers of Anna Chaplains and Self Supporting Ministers to increase ministry across the diocese. As well as an increase in headcount, both stipends

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

and lay staff salaries were uplifted to enable both staff and clergy to manage the impact of the inflationary pressures.

As in 2023, we continued to see significant catch up of property repairs either due to delayed quinquennial works, or preparing properties for clergy appointments. Due to the levels of inflationary pressures on costs that have been seen post COVID, this has led to a significant increase in property costs, and where possible restricted funds have been used to support with this.

As a result of the continued challenge on parish share collection and the ongoing cost pressures impacting from inflation, the operating result on the general fund was a deficit of £782,739 (2023: £689,628).

Balance sheet position

The Trustees consider that the balance sheet, together with details in note 20, show broadly that the restricted and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net assets at the balance sheet date totalled £98,938,008 (2023: £97,293,366) it must be remembered that included in this total are properties and other fixed assets, mostly in use for the ministry, whose value amounted to £68,832,105 (2023: £67,092,483). Much of the remainder of the assets shown in the balance sheet are held in restricted and endowment funds and cannot necessarily be used for the general purposes of the PDBF.

Reserves policy

The free reserves, being the unrestricted general fund net of tangible assets and long term financing totalled £3.0m (2023: £2.7m) which represented 6.9 months (2023: 6.3 months) of parish share requested. The Trustees aim to maintain between 3 and 6 months .

Having considered financial risk, liquidity requirements and the timing of cash flows throughout the year, 12 around £2,231,000 based on the budgeted expenditure for 2025. The reserves at 31 December 2024 equated to around 16 weeks expenditure. It has been considered appropriate to hold this increased level of cash and free reserves for the short to medium term whilst parish funds remain under pressure (impacting on parish share collection levels) and we await confirmation of future Council for the next triennium 2026-2028.

Designated funds

The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered to be adequately justified for their retention.

A description of each reserve together with the intended use of the reserve is set out in note 21. The total value of designated funds at the end of 2024 reduced by £0.3m to £2.4m (2023: £2.7m), reflecting the strategic use of these funds, particularly to support our SDF and SMMIB funded projects.

Restricted and endowment funds

As set out in note 20 PDBF also holds and administers many restricted and endowment funds. As at 31 December 2024 restricted funds totalled £6.3m (2023: £6.3m) and endowment funds totalled £66.6m (2023: £65.9m). Neither are available for the general purposes of the PDBF.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Grant making policy

The Memorandum of Association of the PDBF explicitly permits the PDBF to make grants in pursuance of its objects, and the nature of grants made in 2024 is indicated in note 11.

Investment policy and report

In managing its investments, the PDBF continues to receive advice from its Investment Advisory Group (IAG), and the fund managers, CCLA Investment Management. The level of cash being held remains under scrutiny and throughout the year amounts held on deposit have remained high, benefitting from the increases in interest rates to generate greater return. Due to previous performance of the fund, the decision was made to reduce the holding the property portfolio, and we continue to keep this under review.

The investment income relied upon for the underpinning of the mission work of the Diocese can only be achieved through an active investment strategy that delivers real growth in total return. The IAG continue to encourage a similar approach in relation to parish funds and members of the group continue to engage with parishes to provide support and guidance in this important area.

The investment policy of the IAG as set out in the terms of reference for this group are:

a) Not more than 12 weeks normal expenditure is to be held in cash for routine purposes. This money (currently about £1.9m) is to be held in the CBF Deposit fund (or such other bank deposit account as may be deemed suitable by the Board from time to time). It being understood that the bank current account be maintained in credit.
b) The Diocesan Secretary following discussion with the IAG is authorised to switch investments
c) Any fund managed by CCLA may be used for the Board`s investments, but no other types of
d) The investment managers are to be instructed to achieve a yield of not less than 4% over a 10 year rolling period (taking into account the total cash at a) above), and a total return in line with the appropriate Benchmarks agreed by the Board annually.
e) Funds are to be invested in line with the Statement of Ethical Investment Policy, issued by the Church of England Investment Advisory Group.
f) This policy will be reviewed at least annually by the Board.

The income from financial investments in 2024 was £898,363 (2023: £938,450) and reflected a 3.6% yield. For the year ended 31 December 2024 the investment portfolio achieved an overall total return of 6.44% (being the increase in market value and the actual income received) (2023: 11.26%).

The benchmark against which each of the individual CCLA funds is compared is disclosed in their quarterly report. The property and global investment funds outperformed the selected benchmark in for the year to varying degrees. The investment fund has performed below the benchmark throughout the year. Each fund has outperformed the benchmark on an annualised 5 year basis. The PDBF's investment strategy continues to be, to maintain a high level of income, and to concentrate on good quality companies and properties improved to 6.14% (2023: -1.19%) whilst the global equity fund produced a total return of 8.82% (2023: 17.97%). The investment fund resulted in a reduced return of 5.09% (2023: 12.57%). The % allocation of assets to funds was as follows (the decision was made during the prior year to reduce the holding in the property fund due the sustained negative returns):

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Investment fund Property Fund Global Equity Fund	2024 2023 80% 78% 12% 12% 8% 10% 100% 100%

Principal Risks & Uncertainties

The Trustees and management of PDBF are responsible for the identification, mitigation and management of risks. To manage this, a risk register is maintained and subject to regular review by Trustees and the subcommittees noted below to ensure that any changes to risks are identified. Responsibility for the management of strategies to mitigate these risks is delegated to the Diocesan Secretary.

Key risks and mitigating actions are as follows:

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Key risks How managed
Growth in congregations: the number and age During 2024 we continued to make significant
profile of worshipping communities and of clergy appointments into some parishes that have
ministers remains a concern, with a high been in vacancy for a period of time, as well as
proportion in the upper age brackets. This has seeing the impact of appointments made during
potentially far-reaching implications for the aims 2023 on mission.
and objectives of both the PDBF and each PCC in
the medium to long term. The future plans of the As part of our Rejuvenation strategy we have
PDBF as outlined above are designed specifically to received national funding for the formation of
address and mitigate these key risks and cairns which will enable us to ensure support for
uncertainties and in this way to continue to fulfil its mission and ministry is available at a local, deanery
charitable aims and objectives. and diocesan level.
PDBF continues to seek opportunities for
significant funding investment to ensure that the
relevant resources are available to meet the
desired plans for growth and revitalisation.
Finances: We continue to experience pressure on Management accounts are reported monthly to
costs and salary levels resulting from sustained Bishops Staff Team and Audit Committee and
periods of above average inflation. The impact on finances are discussed at each
clergy, staff and PCCs has been felt strongly and meeting. Cash flow forecasts are also updated
results in ongoing challenges to parish share regularly to aid early identification of pressure
payments as well as an increase to the cost base points.
for the diocese.
We continue to encourage open communication
with PCCS to ensure that any financial challenges
they face can be identified and the appropriate
support offered where possible.
Parish share: Parish share accounts for around 64% Receipts are closely monitored on a monthly basis
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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Key risks	How managed
general income therefore any reduction in this can have significant impact on the future finances and the ability to deliver mission longer term and support the growth of parishes.	and deanery treasurers are supported by diocesan staff and the Diocesan Deanery Finance Committee to understand the budgets and why regular payment of the parish share is preferable. Parishes are assisted to promote the Parish Giving Scheme to aid income generation and enable them to allocate resources to the payment of the parish share. Diocesan finances are reviewed monthly by Bishops Staff Team, Diocesan Deanery Finance Committee, Audit Committee and Bishops Council to ensure the impact of any shortfall in parish share payments can be identified on a timely basis. A parish share review has been completed during 2024 with wide consultation. Questionnaires were available to both individuals and PCCs to respond, to ensure the way we allocate parish share reflects a fair and equitable method across the diocese, that is driven by the parishes.
People:The clergy and lay staff employed by the diocese are critical to the ability to meet the diocesan mission. If the staff teams and clergy are not adequately supported then they will be unable to meet the needs of the parishes and the wider needs of the communities we serve. There is a risk of parishes feeling unsupported when clergy vacancies occur.	Recruitment procedures are in place to ensure that all those employed have the sufficient skills and training to undertake their roles. Parishes and archdeacons will be kept up to date with any changes in the recruitment of clergy. An induction programme is in place for staff joining the diocese and the HR advisory Board has continued to review key policies to ensure that they remain up to date and relevant for the support and wellbeing of staff and clergy.
Funding:The diocese receives significant grant funding from National church and other sources which underpins operations. Any reduction in these grants places additional reliance on parish share and use of reserves to meet any shortfall.	Key members of staff maintain open communication with funders to ensure that they can feed into any consultations around changes to funding and access any additional grants as and when they become available. We to continue to engage with the national review of financial support for dioceses, ensuring that our financial requirements and challenges are understood, and sharing the impact of the funding we receive.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

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Key risks How managed
Governance: The work of the diocese is dependent Committee membership is reviewed regularly to
on good governance, trust and transparency, and ensure that decision making groups are
confidence in the culture and decision making. appropriately skilled and training is provided
where necessary. A skills audit is undertaken when
new trustees are appointed to ensure that key
skills or gaps can be identified.
Each sub-committee has a Trustee (as
member or observer.
Terms of reference and membership of
committees are regularly reviewed to ensure all
areas of Diocesan life are appropriately addressed
and considered.
PDBF is committed to openness and consultation
around budgets and sharing of financial
information, and wider communication and
engagement.
Safeguarding: The care of children and vulnerable The diocese invests in suitable trained officers and
adults remains a key priority to the diocese as it is training and support of parishes and schools. In
a Gospel imperative and at the heart of who we are recent years the staffing level within the team has
and what we do. been increased to enable the team to better
support parishes.
Systems are in place to ensure that all personnel
are trained at the appropriate level for their roles
and that this training is renewed regularly.
Safeguarding is discussed at each Bishops Council
meeting as well as at each meeting of Bishops Staff
Team.
During 2024, a new safeguarding database was
implemented to enable better monitoring and
reporting of the progress of cases.
The DBF will be subject to the INEQE audit during
2025 which is part of the 5 year audit programme
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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Structure & Governance

Summary Information about the structure of the Church of England

The Church of England is the established church, and HM The King is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is a See under the care of a Bishop who is charged with the cure of souls of all the people within that geographical area. This charge is shared with priests within the benefices and parishes which together make up the Diocese.

The National Church has a General Synod comprising ex-officio and elected representatives from each which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the manage the historic assets of the Church of England; and the Church of England Pension Board administers the pension schemes for clergy and lay workers.

Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that leadership assisted by the governance functions of the Diocesan Synod. The Diocese of Portsmouth has seven deaneries, each with its own deanery synod, and within each parish there is a parochial church council which shares with the parish priest responsibility for the mission of the church in that parish.

Organisational structure

The Portsmouth Diocesan Board of Finance is constituted under the provisions of the Diocesan Boards of Finance Measure 1925. It is a registered charitable company and has responsibility for conducting the financial affairs of the Diocese.

The Board of Directors is the main governing body of the charity. Its members are the Directors and Trustees. The Diocesan Synod, however, agrees the overall annual budget, including the overall level of parish contributions to be sought from parishes under the Parish Share system. The Directors also form the esan Synod), the Diocesan Mission and Pastoral policy-setting and finance-controlling responsibilities. Membership comprises ex-officio members, clergy and lay members elected by their respective Diocesan Synod houses, and one member nominated by the

Trustee recruitment, selection, and induction

Trustees are given induction at the outset of the triennium and at other times as appropriate. A skills audit at the start of the triennium informs future training needs also. Those likely to stand for election are also informed before seeking membership and, at all other relevant times, of the role and function of the Committee.

Decision making structure

Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of Portsmouth are set by the Diocesan Synod, and the PDBF. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Diocesan Secretary. The company meets once a year in general meeting to receive and consider the annual report and financial statements and to appoint the auditors. The Diocesan

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Synod each year receives and agrees the annual budget, prepared, and approved by the PDBF.

eight meetings during the year to:

plan the business of the synod, to prepare the agenda for its sessions, and to circulate to members, information about matters for discussion.
initiate proposals for action by the synod and to advise it on matters of policy which are placed before it.
advise the president on any matters which he may refer to the council.
transact the business of the synod when it is not in session.
undertake the responsibilities of the Diocesan Board of Finance
undertake the responsibilities of the Diocesan Mission and Pastoral Committee (DMPC)
to hold all boards and committees accountable for their work and to provide an annual report to synod of that work.
to work with deanery standing committees on the communication of diocesan issues and the understanding of deanery issues.
carry out such other functions as the Synod delegates to it.

The Trustees are assisted in their work by several sub-committees and there is a flow of work through -

Diocesan Deanery Finance Committee reviews and reports on the finances of individual parishes and their ability to meet their parish share commitments. In addition to this important monitoring and evaluation of parish share contributions, this group also agree the approach to individual parish share arrears with the Diocesan Stewardship Adviser, communicate financial matters to Deanery Finance Committees and parishes and provide parish feedback into the Diocesan Audit Committee.
Diocesan Audit Committee scrutinises matters of financial management and governance including budgets, management accounts and cashflows, annual report and accounts, risk management as well as considering each of those aspects in the light of recommendations from the Investment Advisory Group. Taking into account all these different interlinking aspects, the Diocesan Audit
Investment Advisory Group provides advice (the sub-committee has no executive authority) on strategy.
Property Sub Committee reports to the Trustees; it oversees repairs to parsonages, glebe pr by planning the annual business of
Synod for approval.
HR Advisory Board meets to review the pay, conditions and policies affecting the lay members of staff employed by the DBF.

Delegation of day-to-day delivery

The Trustees and the sub-committees which assist them in the fulfilment of their responsibilities, rely upon the Diocesan Secretary and their colleagues for the delivery of the day-to-day activities of the company. The Diocesan Secretary is given specific and general delegated authority to deliver the business of the PDBF in accordance with the policies framed by the Trustees.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Related Parties

The PDBF is required to comply with Measures passed by the General Synod of the Church of England and arrangements for training clergy. Details of these costs can be found in note 8. The PDBF currently receives annual grants from the Church Commissioners in the form of Lowest Income Community Funding and an annual grant from The Benefact Trust. Further details of these receipts can be found in notes 2b and 2c.

Fundraising

The Diocese provides guidance to the parishes with regards to fundraising but does not engage in fundraising activities itself and therefore we have not received any complaints regarding our fundraising activities. Due regard is given to the Fundraising Code of Practice set by Fundraising Regulator when providing guidance to the parishes.

Remuneration of key management personnel

The Board operates a set salary scale and employees are placed on this benchmarked where possible against comparable roles in other dioceses and the external employment market. The salary scale is reviewed each year by the Board with reference to cost-of-living, movements in clergy and national church staff pay. This process is supported by the HR Advisory Board . Emoluments of higher-paid employees are determined in consultation between the Bishop of Portsmouth (as chair of the Board), the Chair of the Audit Committee and the Diocesan Secretary.

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 (as amended) and the Incumbents and churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the

assets by means of a separate bank account and accounting system. Further details of financial trust assets, whose market value amounted to £10.2m at 31 December 2024 (2023: £9.9m), 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 Batt Broadbent.

Funds held on behalf of schools

The PDBF, on behalf of the joint Portsmouth and Winchester Diocesan Board of Education receives contributions from governors of church schools within the Dioceses in connection with major repair and capital projects to church schools and government grants in connection with the same. The staff of the Board of Education (who were employees of the PDBF until 1 July 2024) administer these monies as managing agent and make appropriate payments to contractors for work carried out. The monies do not belong to the PDBF or 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 treated as creditors on the balance sheet. The amount included in creditors as at 31 December 2024 is £1,236,505 (2023: £1,275,038). The income and expenditure relating to school projects not reflected in the Statement of Financial Activities amounted to £1,887,696 and £1,782,584 respectively in 2024 (2023: £1,978,913 and £2,406,505).

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations .

Company law requires the Trustees (as Directors) to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the PDBF and of the surplus or deficit of the PDBF for that period.

In preparing these financial statements the Trustees are required to:

select suitable accounting policies and apply them consistently.
observe methods and principles in the Charities SORP.
make judgements and estimates that are reasonable and prudent.
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation.

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information egislation in England and Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.

In all matters the Trustees complies with the Charity Governance Code which covers seven areas:

Organisational purpose
Leadership
Integrity
Decision making, risk and control
Board effectiveness
Equality, diversity and inclusion
Openness and accountability

Trustees confirm that they have referred and had due regard to the guidance contained in the Charity planning future activities.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Statement of Disclosure to the Auditors

So far as the Trustees are aware:

a) and
b) we have taken all the steps that we ought to have taken as Trustees in order to make ourselves a are aware of that information.

Appointment of Auditors

Haysmacintyre LLP to HaysMac LLP.

There will be a tender process for the appointment of auditors for the PDBF for the year ended 31 December 2025.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Administrative Details

Trustees

No Trustee had any beneficial interest in the company during 2024.

members of General Synod at any one time (3 lay and 3 ordained).

The following are the Trustees who served at any time during 2024 and those that are now serving from the start of 2025 covering the period up to the date of this report along with details of those in attendance:-

1. Trustees who served between 1[st] January 2024 and 31[st] December 2024:

a) Ex Officio Members

Chair: The Rt Rev Dr Jonathan Frost (Bishop of Portsmouth) Dean of Portsmouth: The Very Revd Dr Anthony Cane Archdeacons: The Ven Jenny Rowley (Portsdown, resigned 1[st] February 2024) The Ven Steve Daughtery (Archdeacon of Isle of Wight) The Ven Kathryn Percival (Archdeacon of the Meon) The Revd Canon Robert White (Acting Archdeacon of Portsdown, appointed 25 March 2024)

Chairs of the Houses: The Revd Canon Robert White (Chair of the House of Clergy) Canon Debbie Sutton (Chair of the House of Laity)

Diocesan Secretary: Mr Philip Poulter

b) Elected by House of Clergy

Revd Andrew Hargreaves Revd Dr Susie Collingridge Revd James Hunt Revd Canon Tom Kennar Revd Sam Martell (resigned 22[nd] September 2024) Revd Mark Williams

c) Elected by House of Laity

Mr James Bremridge Mr Neil Chrimes Canon Lucy Docherty Mr Mark Emerton Canon Stuart Forster Mrs Irene James Canon Adrian Jordan Mrs Vanda Leary Mr Simon Lemieux Mr Steven Smart

d) Members in Attendance

Throughout 2024, 3 General Synod members are also voting members of Council in either ex officio or elected capacities (Rev Canon R White, Canon Lucy Docherty, Revd Andrew Hargreaves). Therefore, 3 members of General Synod (Mrs Rebecca Hunt, Mr Ian Johnston and Revd Dr Paul Chamberlain) are in attendance.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Trustees serving since 1[st] January 2025 post elections and to the date of this report:

e) Ex Officio Members

Chair:

The Rt Rev Dr Jonathan Frost (Bishop of Portsmouth)

Dean of Portsmouth:

The Very Revd Dr Anthony Cane

Archdeacons:

The Ven Steve Daughtery (Archdeacon of Isle of Wight, resigned 20 April 2025) The Ven Kathryn Percival (Archdeacon of the Meon) The Revd Canon Robert White (Acting Archdeacon of Portsdown, from 25 March 2024)

Chairs of the Houses:

The Revd Canon Robert White (Chair of the House of Clergy)

Canon Debbie Sutton (Chair of the House of Laity)

Diocesan Secretary:

Mr Philip Poulter

Director of Ministry and Discipleship:

Revd Andrew Hargreaves

f) Elected by House of Clergy

Revd Amy Adeniran Revd James Hunt Revd David Morgan

Revd Ray Driscoll (appointed 27 January 2025) Revd Dr Coleen Jackson Revd Adam Tams

g) Elected by House of Laity

Oyinlolu Alonge (appointed 24 March 2025) Canon Lucy Docherty Canon John Gwynn (appointed 19 February 2025) Canon Adrian Jordan Mr Steven Smart

Mr Neil Chrimes Mrs Bethan Fogell (resigned 9 April 2025) Mr Martin How

Mr Simon Lemieux

h) Members in Attendance

From 1[st] January 2025 to the date of this report, 3 General Synod members are also voting members of Council in either ex officio or elected capacities (Rev Canon R White, Canon Lucy Docherty, Revd Andrew Hargreaves). Therefore, 3 members of General Synod (Mrs Rebecca Hunt, Mr Ian Johnston and Revd Dr Paul Chamberlain) are in attendance.

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2024

Senior staff and advisers Diocesan Secretary Philip Poulter Director of Mission and Ministry Anthony Rustell (resigned 3[rd] December 2024) Interim Director of Mission and Discipleship Andrew Hargreaves (appointed 1[st] October 2024) Director of Education Jeff Williams (resigned 30 June 2024) Executive Director, CSR Nick Ralph Director of Communications Neil Pugmire Head of Safeguarding Emily Hassan Head of Finance Elaine Coe

Registered Office

Diocesan Office, 1[st] Floor, Peninsular House, Wharf Road, Portsmouth, PO2 8HB

Key Advisers and Agents

----- Start of picture text -----
Bankers Barclays PLC, PO Box 165, Crawley, RH10 1YX
Auditors HaysMac LLP, 10 Queen Street Place, London EC4R 1AG
Solicitors & registrar Batt Broadbent LLP, Minster Chambers, 42-44 Castle Street, Salisbury, SP1 3TX
Investment Advisers CCLA, 80 Senator House, 85 Queen Victoria Street, London, EC4V 4ET
Glebe Agents Carter Jonas LLP, 9-10 Jewry Street, Winchester SO23 8RZ
Insurers ElG, Beaufort House, Brunswick Road, Gloucester, GL1 1JZ
HR Advisers Kane HR, Westpoint House, 32-34 Albert Street, Fleet, Hampshire, GU51 3RW
----- End of picture text -----

ON BEHALF OF THE TRUSTEES

The Right Revd Jonathan Frost

Chairman

19 May 2025

Philip Poulter Diocesan Secretary

19 May 2025

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF PORTSMOUTH DIOCESAN BOARD OF FINANCE For the year ended 31 December 2024

_______________

Opinion

We have audited the financial statements of Portsmouth Diocesan Board of Finance for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

2024
expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we

INDEPENDENT AUDITORS REPORT TO THE MEMEBERS OF PORTSMOUTH DIOCESAN BOARD OF FINANCE For the year ended 31 December 2024

conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Annual Report (which includes the strategic report and the the financial statements are prepared is consistent with the financial statements; and
t prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual

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

adequate accounting records have not been kept by the charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees for the financial statements

set out on page 16, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

INDEPENDENT AUDITORS REPORT TO THE MEMEBERS OF PORTSMOUTH DIOCESAN BOARD OF FINANCE For the year ended 31 December 2024

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

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

Inspecting correspondence with regulators and tax authorities;
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Identifying and testing journals, in particular journal entries posted at the year-end and those with unusual descriptions;
Challenging assumptions and judgements made by management in their accounting estimates;
Testing transfers between funds; and
Cut-off testing in respect of revenue.

A further description of our responsibilities for the audit of the financial statements is located on the www.frc.org.uk/auditorsresponsibilities. This description forms part

Use of our report

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

Jane Askew (Senior Statutory Auditor) For and on behalf of HaysMac LLP, Statutory Auditor Date:

10 Queen Street Place London EC4R 1AG

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

STATEMENT OF FINANCIAL ACTIVITIES

At 31 December 2024

_______________

The net surplus/(deficit) of income over expenditure, together with details of income and expenditure required by the Companies Act, may be derived from net incoming resources before transfers, excluding movements on endowment funds, in the Statement of Financial Activities above. All income and resources expenditure derive from continuing activities.

The comparative data for year ended 31 December 2023 is included in note 27.

The notes on pages 29 to 59 form part of the financial statements.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

BALANCE SHEET

At 31 December 2024

_______________

Revaluation reserves of the following amounts are included within the above funds: endowment funds £25.0m (2023: £23.6m), restricted funds £2.0m (2023: £1.9m), designated funds £1.5m (2023: £1.5m), general funds £5.3m (2023: £4.6m).

The Notes on pages 29 to 59 form part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 19[th] May 2025 and signed on behalf of the Board by:

The Right Revd Jonathan Frost

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

STATEMENT OF CASHFLOWS

At 31 December 2024

_______________ Net cash flow from operating activities Net cash used in operating activities (1,944,846) Cash flows from investing activities Dividends, interest and rent from investments 928,296 Purchase of property and equipment (726,698) Purchase of investments (637,039) Sale of property and equipment 611,074 Sale of investments 1,489,183 Net cash provided by investing activities 1,664,816 Cash flows from financing activities Loans repaid by PDBF - Cash inflows from new borrowing 287,500 Net cash used in financing 287,500 Change in cash and cash equivalents in the reporting period 7,470 5,879,499 5,886,969 Reconciliation of net income to net cash flow from operating activities 2024 Net income for the year ended 31 December 41,489 Adjustments for: Depreciation charges 51,233 (Gains)/losses on investments (529,427) Dividends, interest and rent from investments (1,004,343) (Gain)/loss on sale of functional assets (97,354) (Gain)/loss on disposal of investments 47,163 (Increase)/decrease in operating debtors 207,976 Increase/(decrease) in operating creditors (661,583) Net cash provided by operating activities (1,944,846) Analysis of net debt 25 Cash at bank and in hand 548,456 Cash on deposit 5,338,513 Bank/other loan (287,500) Total net debt 5,599,469 Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December 2024	______ (1,671,554) 963,767 - (3,589,884) - 4,234,356 1,608,239 (607,083) - (607,083) (670,398) 6,549,897 5,879,499 2023 1,005,705 52,540 (1,438,122) (1,035,093) - 49,899 (101,403) (205,080) (1,671,554) 300,416 5,579,083 - 5,879,499 2023	______ (1,671,554) 963,767 - (3,589,884) - 4,234,356 1,608,239 (607,083) - (607,083) (670,398) 6,549,897 5,879,499 2023 1,005,705 52,540 (1,438,122) (1,035,093) - 49,899 (101,403) (205,080) (1,671,554) 300,416 5,579,083 - 5,879,499 2023

		(670,398) 6,549,897
		5,879,499
		2023 1,005,705 52,540 (1,438,122) (1,035,093) - 49,899 (101,403) (205,080)
Net income for the year ended 31 December Adjustments for: Depreciation charges (Gains)/losses on investments Dividends, interest and rent from investments (Gain)/loss on sale of functional assets (Gain)/loss on disposal of investments (Increase)/decrease in operating debtors Increase/(decrease) in operating creditors Net cash provided by operating activities Analysis of net debt 25 Cash at bank and in hand Cash on deposit Bank/other loan Total net debt
		(1,671,554)
		300,416 5,579,083 -
		5,879,499

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

ACCOUNTING POLICIES

Portsmouth DBF is a company limited by guarantee, incorporated in England and Wales, and is a Public Benefit Entity as defined by FRS102. The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (Second Edition, effective 1 January 2019), the Companies Act 2006 and applicable accounting standards (FRS102).

The Trustees consider that there are no material uncertainties that could cast doubt on the charity's ability to continue as a going concern. reasonable expectation that the charity has adequate resources to continue as a going concern for the foreseeable future. The Trustees therefore continue to adopt the going concern basis in preparing this Annual Report and Financial Statements.

The principal accounting policies and estimation techniques are as follows.

a) Income

All income is included in the Statement of Financial Activities (SOFA) when the PDBF is legally entitled to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.

i) Parish Share is recognised as income in the year in which it is received, plus an accrual for any late payments received in January of the following year.
ii) Rent is recognised as income when receivable.
iii) Interest and dividends are recognised as income when receivable.
iv) Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year.
v) Parochial fees are recognised as income in the year in which it is received, plus an accrual for any late payments received in the following year.
vi) Donations other than grants are recognised when receivable .
vii) Gains on disposal of fixed assets for the PDBF (i.e., non-investment assets) are accounted for as other income. Losses on disposal of such assets are accounted for as other expenditure.
viii) Stipends fund income. The Stipends Fund Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting.

b) Expenditure

Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activities category.

i) Costs of raising funds are constrained to costs relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

1. ACCOUNTING POLICIES (CONTINUED)

ii) Charitable expenditure and expenditure on resourcing mission and ministry within the Diocese.
iii) Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the PDBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
iv) Support costs consist of central management, administration, and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.
v) Pension contributions . The majority of PDBF's staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pensions Scheme (see note 24). The pension costs charged as resources expended represent both the PDBF's contributions payable in respect of the accounting period, in accordance with FRS102 and the funding of any deficit. Deficit funding for the pension schemes to which PDBF participates is accrued at current value in creditors distinguished between contributions falling due within one year and after more than one year. We also have a small number of s . The pension costs charged represent the contributions payable by PDBF.

c) Tangible fixed assets and depreciation

Properties are accounted for at their fair value and are reviewed annually and revalued accordingly. Each property is subject to a full revaluation review on at least a five-year cycle. This review is led by our internal property specialist and is used as the basis of assessing the valuation of the remainder of the portfolio. The fair value assessment is reviewed by management and the Board of Trustees.

Depreciation is not provided on buildings as any provision (annual or cumulative) would not be material due to the very long expected remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value. The PDBF has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from obsolescence. In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value. The Trustees perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount.

Parsonage houses

The PDBF has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

1. ACCOUNTING POLICIES (CONTINUED)

The PDBF is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their estimated fair value, using the same valuation methodology as for freehold properties as noted above. This treatment is also applied to any property where the title will revert to the PCC in the event that it should no longer be required as a parsonage.

Computer equipment

Items of computer equipment are stated at cost, being the purchase price and any incidental acquisition costs.

d) Depreciation

Depreciation is provided on leasehold properties over the lesser of 50 years or the life of the lease.

Depreciation is provided on computer equipment over a period of 3 years.

e) Other accounting policies

i) Fixed asset investments are included in the balance sheet at bid value and the gain or loss taken to the Statement of Financial Activities. The single property held as an investment is revalued by the Diocesan surveyor on a five-year cycle alongside all other properties.

Glebe land is accounted for at fair value and is reviewed on a five-year cycle and revalued accordingly.

ii) Leases . The PDBF has entered only into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure in the year to which it relates. Where rent free periods are given as part of an operating lease, the impact of this rent-free period is reflected in the Statement of Financial Activities over the lease term.
iii) Financial instruments party to the contractual provisions of the instrument. The charity only has financial assets and liabilities which qualify as basic financial instruments.

Financial assets and liabilities measured at amortised cost, which includes parish share receivable and other debtors, bank loans and creditors, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest rate method.

Financial assets held at fair value comprise the listed and unlisted investments disclosed in note 15.

f) Fund balances

Fund Balances are split between unrestricted (general and designated), restricted and endowment funds.

Unrestricted funds are the P PDBF. There are two types of
unrestricted funds:
General funds which the PDBF intends to use for the general purposes of the PDBF and
Designated funds set aside out of unrestricted funds by the PDBF for a purpose specified by the Trustees

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

1. ACCOUNTING POLICIES (CONTINUED)

Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.
Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the PDBF (Stipends Fund Capital, Parsonage Houses and Schools), there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.

) and any other trusts where the company acts as statements. Trusts where the PDBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are summarised in the notes to the financial statements.

g) Key Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

Basis for non-depreciation of functional residential property
Assumptions underpinning the clergy and church w cheme liabilities.
Fair value of properties

2 DONATIONS

2a Parish Contributions

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

2a Parish Contributions (continued)

The majority of donations are collected from parishes of the diocese through the parish share system. Current year parish share receipts represent 85.7% of the total apportioned (2023: 83.4%) or when receipts for previous years are included, 86.4% (2023: 84.4%) of the amount requested.

2b Archbishops Council

2c Other donations

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

3 CHARITABLE ACTIVITIES

4 OTHER TRADING ACTIVITIES

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

5 INVESTMENT INCOME

6 OTHER INCOME

7 FUND RAISING COSTS

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

8 CHARITABLE ACTIVITIES

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

8 CHARITABLE ACTIVITIES (CONTINUED)

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

9 ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

10 ANALYSIS OF SUPPORT COSTS

remuneration for the year was £20,490 (2023: £19,530) and the cost of operating lease rentals was £25,256 (2023: £22,530).

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

11 ANALYSIS OF GRANTS

12 STAFF COSTS

Employee costs during the year were as follows:

Included in the above are settlement payments totalling £2,500 (2023: £2,242).

The reduction in pension costs compared to the prior year is due to a surplus on the historical lay staff DBS scheme, which is being used to offset current pension contributions for lay staff. The monies are held by the Church of England Pension Board.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

12 STAFF COSTS (CONTINUED)

The average number of persons employed during the year:

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

Included in the figures above are a small number of staff who work within the deaneries including the PA's to the Archdeacons, as well as those in central diocesan support roles. In addition, 2 members of staff are funded under the Strategic Development funds, 2 funder under the Net Zero Carbon funds and 1 funded under the Church Building Support Officer funds.

The staff team included above under Education are shared with the Winchester Diocesan Board of Finance (WDBF). Two thirds of the cost of this team are recharged to the WDBF based on the number of schools in each diocese and the FTE head count reflects the average headcount paid for by PDBF. From 1[st] July 2024 these staff were TUPE d to the Portsmouth and Winchester Diocesan Board of Education (P&WDBE). The figures above include their costs for the first 6 months of the year only.

The finance team for the PDBF are also a shared team with WDBF. The costs of this team are charged from WDBF to PDBF on the basis of time spent providing support to each diocese. The average FTE for these staff is included in the headcount above, based on the time spent supporting PDBF.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

12 STAFF COSTS (CONTINUED)

The number of staff whose emoluments (including benefits in kind but excluding pension contributions) amounted to more than £60,000 was as follows:

Pension payments of £17,862 (2023: £26,139) were made for these employees.

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the diocese. During 2024 they were:

Remuneration, pensions and expenses for these 8 employees (2023: 7) amounted to £406,876 (2023: £405,960).

No Trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses totalling £15,726 (2023: £21,965) in respect of General Synod duties, duties as archdeacon or area/rural dean, and other duties as Trustees. During the year, no trustees were in receipt of resettlement grants (2023: 3).

The following table gives details of the Trustees who were in receipt of a stipend and/or housing provided by the PDBF during the year (this includes any appointments made in 2025):

The following Trustees are also members of the PDBF staff team and were in receipt of a salary for these roles during the year:

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

12 STAFF COSTS (CONTINUED)

The PDBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than bishops and cathedral staff. The PDBF is also responsible for the provision of housing for stipendiary clergy in the diocese, again excluding the diocesan bishop and cathedral staff.

The PDBF paid an average of 78.5 (2023: 74.5) stipendiary clergy as officeholders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

Included in the figures above are settlement payments totalling £nil (2023: £90,555).

13 ANALYSIS OF TRANSFERS BETWEEN FUNDS

Further details of the transfers are included in note 19.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

13 ANALYSIS OF TRANSFERS BETWEEN FUNDS (CONTINUED)

14 TANGIBLE FIXED ASSETS Land and Buildings

All of the properties in the balance sheet are freehold and are vested in the PDBF, except for benefice houses which are vested in the incumbent. All properties are held at market value and are subject to a five-year cycle of survey and consequent repairs are charged as expenditure, unless they demonstrate enhancement to the property value, in which case they are capitalised.

The Diocesan Office at Peninsular House is a leasehold property for which the premium is being amortised over 50 years. Just under half of the office space is sublet as it is not required for diocesan use. The carrying value of this property valued on a part functional, part investment basis would not be materially different from that quoted above.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

----- Start of picture text -----
15 FIXED ASSETS INVESTMENTS
16 DEBTORS
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The parish share receivable relates to amounts received in January 2024 relating to 2023 parish share requests and are treated as accrued income in the accounts. Any payments against arrears received after this date will be recorded as 2025 income.

17 CREDITORS: amounts falling due within one year

The P&WCSG Fund holds £1,286,951 (2023: £1,330,550) on deposit with CCLA and Barclays.

Deferred income relates to rental income received in advance which is fully released in the subsequent year, and Strategic Ministry and Mission funding for Ryde received in advance which has not been fully spent at the end of the year. This is expected to be spent in the coming year.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

18 CREDITORS: amounts falling due after more than one year

The loan balance is an amount due to the Parish of Warblington with Emsworth parish in relation to the purchase of a property during the year. There is no interest due and the property is to be held on trust for three years. The loan will be settled from the proceeds of the sale of the property when this arises.

19 SUMMARY OF FUND MOVEMENTS

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

19 SUMMARY OF FUND MOVEMENTS (CONTINUED)

Restricted funds Barclay Bequest Ben Aug Fund Bishop's Lent Appeal Christian Healing Fund Harrision Parochial Loan Fund Huckstepp Legacy James Legacy New Churches Fund Turret House Fund Surrexit Fund Pastoral Fund P&WCSGF Corban Fund Eckersley Clergy families Education Restricted Resourcing Ministerial Education Strategic Development Net Carbon Zero Church Building Support Officer Minor Repairs and Improvements Flourish Quick Wins Expendable Endowment funds Parsonage Houses Education Endowment Permanent Endowment funds Stipends Capital Fund Bells Loan Fund Boyd Richardson Trust Constance Trust Cowes St M Ben Aug Diocesan House Trust Fawdry Bequest Glebe Property Glebe House Cottage Trust Hayling St M Curacy End Lambert Loan Fund Glebe Capital Energy Grant Glebe Fund Total Funds Strategic Mission and Ministry - Rejuvenation	Balances at Balances at 1 January Gains and 31 December 2024 Income Expenditure Transfers losses 2024 £ £ £ £ £ £ 7,864 245 - - 129 8,238 112,240 - - - 2,850 115,090 4,342 17 (389) - - 3,970 261 10 - - - 271 19,150 581 - - - 19,731 123,412 - - - 1,962 125,374 24,673 - - - 561 25,234 1,336,943 40,120 - - 27,729 1,404,792 132,729 3,728 - - 3,014 139,471 5,195 23,744 (13,199) - - 15,740 2,371,045 69,076 (7,438) (261,060) 44,404 2,216,027 39,107 34,399 (23,060) (11,339) - 39,107 50,784 1,478 - - 1,039 53,301 486,669 14,642 - - 9,339 510,650 1,439,320 100,473 (4,111) (171,501) 27,374 1,391,555 102,946 21,700 (19,598) - - 105,048 (391) 521,335 (524,708) 3,312 - (452) 15,334 - (500) - - 14,834 5,640 42,673 (49,519) - - (1,206) - 21,800 (11,955) - - 9,845 - 72,765 (9,908) - - 62,857 - 44,000 (23,866) - - 20,134 - 24,425 (13,552) - - 10,873 - - (16,713) - - (16,713)
	6,277,263 1,037,211 (718,516) (440,588) 118,401 6,273,771
	45,157,130 - - (589,723) 998,091 45,565,498 1,844,541 28,203 - - 18,456 1,891,200 - 9,350,205 - - (151,698) 189,206 9,387,713 525,475 14,124 - 26,900 20,916 587,415 195,746 - - - 4,702 200,448 36,667 - - - 881 37,548 1,128 - - - 24 1,152 264,710 - - - 6,094 270,804 45,821 (41) - - 1,042 46,822 1,218,193 49,384 - - 22,464 1,290,041 6,932,799 - - - 8,126 6,940,925 5,238 - - - 119 5,357 1,470 - - - 32 1,502 206,973 6,206 - 9,123 3,677 225,979 110,199 - - - 18,589 128,788
	65,896,296 97,876 - (705,398) 1,292,419 66,581,192

	97,271,482 8,337,189 (8,825,127) - 2,154,468 98,938,011

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

19 SUMMARY OF FUND MOVEMENTS (CONTINUED)

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

19 SUMMARY OF FUND MOVEMENTS (CONTINUED)

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

20 SUMMARY OF ASSETS BY FUND

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

20 SUMMARY OF ASSETS BY FUND (CONTINUED)

Restricted funds Barclay Bequest Ben Aug Fund Bishop's Lent Appeal Christian Healing Fund Harrision Parochial Loan Fund Huckstepp Legacy James Legacy New Churches Fund Turret House Fund Surrexit Fund Pastoral Fund P&WCSGF Eckersley Clergy families Education Restricted Resourcing Ministerial Education Strategic Development Net Carbon Zero Church Building Support Officer Minor Repairs and Improvements Flourish Quick Wins Expendable Endowment funds Parsonage Houses Education Endowment Permanent Endowment funds Stipends Capital Fund Bells Loan Fund Boyd Richardson Trust Constance Trust Cowes St M Ben Aug Diocesan House Trust Fawdry Bequest Glebe Property Glebe House Cottage Trust Hayling St M Curacy End Lambert Loan Fund Glebe Capital Corban Trust Energy grant Glebe Fund Total Funds Strategic Mission and Ministry - Rejuvenation	Current Net Tangible Investments Assets Liabilities Assets £ £ £ £ £ - 5,773 2,465 - 8,238 - 115,090 - - 115,090 - - 5,159 (1,189) 3,970 - - 271 - 271 - - 19,731 - 19,731 - 123,534 1,840 - 125,374 - 25,081 153 - 25,234 - 1,328,936 75,856 - 1,404,792 - 138,893 578 - 139,471 - - 15,740 - 15,740 - 1,929,510 286,517 - 2,216,027 - - 1,275,612 (1,236,505) 39,107 - 46,439 6,862 - 53,301 - 417,374 93,276 - 510,650 - 688,039 699,264 4,252 1,391,555 - - 105,048 - 105,048 - - 58,146 (58,598) (452) - - 14,834 - 14,834 - - (1,206) - (1,206) - - 9,845 - 9,845 - - 62,857 - 62,857 - - 20,134 - 20,134 - - 10,873 - 10,873 - - (16,713) - (16,713) Fixed Assets
	- 4,818,669 2,747,142 (1,292,040) 6,273,771
	45,683,320 - (117,822) - 45,565,498 - 1,076,505 814,694 - 1,891,199 - 8,964,708 423,006 - 9,387,714 - 468,826 118,589 - 587,415 - 210,155 (9,707) - 200,448 - 39,367 (1,819) - 37,548 - 1,091 61 - 1,152 - 282,657 (11,853) - 270,804 - 46,546 276 - 46,822 - 1,276,578 13,463 - 1,290,041 2,502,051 4,013,003 425,871 - 6,940,925 - 5,317 40 - 5,357 - 1,421 81 - 1,502 - 164,327 61,652 - 225,979 - 124,992 3,796 - 128,788
	48,185,371 16,675,493 1,720,328 - 66,581,192

	68,832,105 25,681,472 6,419,210 (1,994,776) 98,938,011

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

20 SUMMARY OF ASSETS BY FUND (CONTINUED)

2023 Unrestricted funds - General Unrestricted funds - Designated Brown, Doig, Silver Bequest Circus Charity Fund Diocesan Conference Fund Car Loan Fund Diocesan Loan Fund Parsonages Repair Fund CME Fund Valpy Bequest Winterbotham Legacy Office Repair Fund Mission Fund Lambeth Conference Fund Evangelism Fund Building Repair Fund Catherington House Fund Sustainability Fund CBIL repayment fund Reader board Restricted funds Barclay Bequest Ben Aug Fund Bishop's Lent Appeal Christian Healing Fund Harrision Parochial Loan Fund Huckstepp Legacy James Legacy New Churches Fund Turret House Fund Surrexit Fund Pastoral Fund P&WCSGF Eckersley Clergy families Education Restricted Resourcing Ministerial Education Strategic Development Ministry Hardship Fund Net zero Corban Trust Energy grant	Current Net Tangible Investments Assets Liabilities Assets £ £ £ £ £ Fixed Assets
	19,723,600 2,743,489 632,655 (686,392) 22,413,352
	- 40,297 28,096 - 68,393 - 2,352 135 - 2,487 - - 55,905 - 55,905 - - - - - - 265,930 80,137 - 346,067 - 455,713 (151,671) - 304,042 - - 145,039 - 145,039 - 37,940 (1,792) - 36,148 - 179,327 (10,357) - 168,970 - 61,913 59,973 - 121,886 - - 334,378 - 334,378 - - 8,715 - 8,715 - - 1,495 - 1,495 - - 80,494 - 80,494 - 586,760 127,292 - 714,052 - 105 326,712 - 326,817 - 112,754 (139,739) - (26,985) - - (3,331) - (3,331)
	- 1,743,089 941,481 - 2,684,572
	- 5,643 2,221 - 7,864 - 117,804 (5,564) - 112,240 - - 9,015 (4,672) 4,343 - - 261 - 261 - - 19,150 - 19,150 - 121,572 1,840 - 123,412 - 24,520 153 - 24,673 - 1,267,574 69,369 - 1,336,943 - 132,172 557 - 132,729 - - 5,195 - 5,195 - 1,850,556 520,489 - 2,371,045 - - 1,314,145 (1,275,038) 39,107 - 45,400 5,384 - 50,784 - 408,035 78,634 - 486,669 - 1,103,999 738,077 (402,756) 1,439,320 - - 102,946 - 102,946 - - (392) - (392) - - - - - - - 15,334 - 15,334 - - 5,640 - 5,640
	- 5,077,275 2,882,454 (1,682,466) 6,277,263

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

20 SUMMARY OF ASSETS BY FUND (CONTINUED)

21 DESCRIPTION OF FUNDS

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

21 DESCRIPTION OF FUNDS (CONTINUED)

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

22 OPERATING LEASES

Total commitments under non-cancellable operating leases are as follows:

23 ANALYSIS OF CHANGES IN NET DEBT

24 PENSIONS

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2024: £566,346, 2023: £585,666), plus any be fully funded and as such in 2024, following the valuation results being agreed, the deficit contributions paid were £0 (2023: £0).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

An average discount rate of 2.7% pa;
RPI inflation of 3.6% pa (and pension increases consistent with this);
CPIH inflation in line with RPI less 0.8% pa pre 2030 moving to RPI with no adjustment from 2030 onwards;
Increases in pensionable stipends in line with CPIH;
Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates from 2013 in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%).

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

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

24 PENSIONS (CONTINUED)

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

% of pensionable stipends	% of pensionable stipends
31 December 2021	7.1% payable from January	2021 to December 2022
31 December 2022	Nil
31 December 2023	Nil
31 December 2024	Nil

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

rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2024 is nil. The movement in the balance sheet liability over 2023 and over 2024 is set out in the table below.

	2024	2023
	£	£
Balance sheet liability at 1 January	-	-
Deficit contribution paid	-	-
Interest cost (recognised in SoFA)	-	-
Remaining change to the balance sheet liability* (recognised in SoFA)	-	-
Balance sheet liability at 31 December	-	-

Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.

The legal structure of the scheme is such that if another Responsible Body fails, Portsmouth DBF could become responsible

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

CWPF has two sections:

the Defined Benefits Scheme
the Pension Builder Scheme, which has two subsections;
a. a deferred annuity section known as Pension Builder Classic, and, b. a cash balance section known as Pension Builder 2014.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

24 PENSIONS (CONTINUED) Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2024: £51,917, 2023: £175,556).

For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2025, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 2.7% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2024. There is no requirement for deficit payments at the current time.

The next valuation is due as at 31 December 2025.

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

The legal structure of the scheme is such that if another employer fails, Portsmouth DBF could become responsible for paying a share of the fail

Defined Benefits Scheme

final pensionable salaries.

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

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

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2024: £nil, 2023: £nil) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total credit of £nil (2023: £nil).

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

24 PENSIONS (CONTINUED)

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

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

The next actuarial valuation is due at 31 December 2025.

Since 31 December 2023, the Board has entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF.

The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a

The movement in the provision is set out in the table below.

	2024	2023
	£	£
Balance sheet liability at 1 January	-	-
Deficit contribution paid	-	-
Interest cost (recognised in SoFA)	-	-
Remaining change to the balance sheet liability* (recognised in SoFA)	-	-
Balance sheet liability at 31 December	-	-

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

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

	December	2024	December	2023	December 2022
Discount rate	N/A		N/A		0.00%

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

The PDBF made contributions to the TPS on behalf of 3 employees who had previously been teachers. The TPS is a statutory, unfunded 2010 (as amended) and Pension Scheme Regulations 2014 (as amended). Membership is automatic for full-time teachers and from 1 January 2007, automatic for teachers and lecturers in part-time employment following appointment or a change of contract, although they are able to opt out.

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

24 PENSIONS (CONTINUED)

made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020 and full details are available on the Government website at: https://www.gov.uk/government/collections/teachers-pension-scheme.

25 RELATED PARTY TRANSACTIONS

The Portsmouth Diocesan Council for Social Responsibility (PDCSR) is a separate charitable limited company. Staff engaged in the activities of PDCSR are employed by the PDBF and a contribution towards their staff costs was made by the PDCSR for £132,967 (2023: £83,271). The PDBF has also supported the work of the PDCSR for several years and in 2024 provided free use of office space, and IT Cloud functionality.

The Portsmouth and Winchester Diocesan Board of Education (DBE) shares trustees with PDBF and provides funding to the charity for its operations. Funding provided in the year totalled £86,666 (2023: £nil). The PDBF provided free use of office space to the DBE.

26 FUNDS HELD AS CUSTODIAN TRUSTEE

The PDBF acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. Assets held in this way are not aggregated in these financial statements as the PDBF does not control them. The financial assets held in this way may be summarised as follows:

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

________________

27 STATEMENT OF FINANCIAL ACTIVITIES PRIOR YEAR

Note Donations Income and endowments from	Restricted Endowment Total funds General Designated funds funds 2023 £ £ £ £ £ Unrestricted funds
Parish contributions 2a 2b Other donations 2c Charitable activities 3 Other trading activities 4 Investments 5 Total Expenditure on: Raising funds 6 Charitable activities 7 Total 8 Net gains on investments 14 Net income Transfers between funds 12 Gains on revaluation of fixed assets 13 Gain/(loss) on disposal of investments Remeasurement of pension scheme provision Net movement in funds Other recognised gains/(losses) Net income/(expenditure) before investment gains/(losses)	4,323,125 - - - 4,323,125 577,634 - 818,347 - 1,395,981 123,695 - 5,665 - 129,360 528,479 5,505 25,000 - 558,984 601,395 - 46,143 - 647,538 613,421 100,789 220,275 100,608 1,035,093
	6,767,749 106,294 1,115,430 100,608 8,090,081
	67,555 - - - 67,555 7,389,822 166,665 898,456 - 8,454,943
	7,457,377 166,665 898,456 - 8,522,498
	(689,628) (60,371) 216,974 100,608 (432,417) 161,726 111,067 289,468 875,861 1,438,122
	(527,902) 50,696 506,442 976,469 1,005,705 1,096,801 (921,839) (114,212) (60,750) - 50,066 - - 459,680 509,746 - 49,899 - - 49,899 - - - - -
	50,066 49,899 - 459,680 559,645
	618,965 (821,244) 392,230 1,375,399 1,565,350 21,794,387 3,505,816 5,885,033 64,520,896 95,706,132
Total funds at 1 January
Total funds at 31 December 19	22,413,352 2,684,572 6,277,263 65,896,295 97,271,482