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2025-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2025

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company number - 226466

Registered charity number – 249256

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................................................................ 2 Legal Objects ............................................................................................................................................................................. 5 Strategic Aims .......................................................................................................................................................... 5 Activities & Achievements for the Year .................................................................................................................... 6 Future Plans ............................................................................................................................................................. 9 Financial Review .................................................................................................................................................... 10 Principal Risks & Uncertainties ............................................................................................................................... 14 Structure & Governance ......................................................................................................................................... 17 Trustees’ Responsibilities ....................................................................................................................................... 20 Administrative Details ............................................................................................................................................ 22 Independent Auditors report ........................................................................................................................................ 24 Statement of Financial Activities… ............................................................................................................................... 28 Balance sheet… ............................................................................................................................................................. 29 Cashflow Statement… .................................................................................................................................................. 30 Notes to the financial statements… ............................................................................................................................. 31

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Foreword

The Portsmouth Diocesan Board of Finance (PDBF) is in good heart, well aware of its challenges and exercised by ‘life after Darlow’ – an ongoing aspect of relationship with the national church which continues to impact the day-today life of the diocese. More of that below. At audit, the DBF is a going concern. It oversees and governs the life of a vibrant diocese. It has an effective executive, a clear vision and strategy (REJUVENATE), and oversees a community of communities in which over 13,000 people actively engage every week in the life, service and mission of its parish churches, chaplaincies, church plants, and Cathedral Church. The DBF has established sound financial monitoring and control. In 2025, from only 129 parishes, the best part of £5m was given in parish share (voluntary contributions) in support of Christian ministry and mission in communities across East Hampshire, the City of Portsmouth, and the Isle of Wight.

Though growing numerically and seeing annual increases in voluntary giving, the diocese lives with structural deficits which cannot be sustained in the longer term. Pruning our operation is an active part of our response as a DBF. But we will also need to be arguing for a new funding settlement between the national church and the dioceses. A settlement which supports the whole mixed ecology of the Church’s ministry and work, including provision for the stipends of clergy, and not simply part of that mixed ecology.

The PDBF oversees the allocation of resource to enable a distinctively Anglican expression of Christian life, mission and ministry in East Hampshire, the City of Portsmouth, and the Isle of Wight. In this diocese a ‘mixed ecology’ approach to Christian ministry is the norm. By this we mean that to participate fully and faithfully in God’s mission we will need church planters and pioneers, chaplains and cathedral clergy, enabling lay disciples to live their faith in every kind of network, neighborhood and community. And, vitally, we will need parish clergy: so often in my experience the prayerful, holy, inspiring and enabling presence underpinning the church’s ministry and mission locally.

Some background is salient. In the years prior to 2015, the PDBF received a grant from the national church to support the cost of clergy stipends, a disbursement calculated by what was known as the Darlow formula. Alongside income from parish share, investments and fees of various kinds, income through Darlow enabled the diocese to sustain a level of ordained and stipendiary ministry in places and contexts unable to afford or sustain it. However ‘Darlow’ received, in my view valid, criticism for requiring insufficient accountability on the part of recipient dioceses: in relation to return on investment and whether funds were being used effectively in the service of mission. So ‘Darlow’ was replaced.

In ‘life after Darlow’, dioceses have been, for the most part, unable to secure funding for the deployment of stipendiary priests.

Rather, dioceses have been invited to apply for grants for projects designed to foster numerical growth, projects with an enhanced accountability regime. In this era, Low Income Community Funding (LINC) has brought welcome support to some of our most financially stretched communities. Project funding, administered through two schemes (Strategic Development Funding (SDF) and latterly, through the oversight of the Church of England’s Strategic Ministry and Mission Investment Board (SMMIB)), have seen missional life and energy breathed through a host of projects and communities across the diocese, for which we are truly thankful. But these funds are made available to support only part of the mixed ecology: typically, projects that are new and innovative, rather than, for example, the day-day pastoral and missional work of priests in parishes. With the exception of a handful of cases (where whole dioceses have received eye-

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

watering levels of funding which have included funds for stipends), these funds are for projects and not parish priests. I would argue that we need a funding settlement between the national church and the dioceses that brings mutual accountability, and which makes available financial support for every part of the mixed ecology.

I trust a very brief outline of the national Church of England context, as it frames and impacts upon the financial life and work of the Portsmouth Diocesan Board of Finance (DBF) will first, widen understanding of the financial context navigated so effectively by the PDBF. I hope, second, to encourage readers within and beyond the diocese to participate in the urgent national conversation now underway which will shape policy around disbursements to dioceses in the triennium 2029-31.

Surely it’s a mixed ecology financial settlement we need for a mixed ecology Church.

The Right Revd Jonathan Frost Bishops of Portsmouth

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

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 2025. 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:

Legal Objects

The Portsmouth Diocesan Board of Finance (“PDBF”)’s principal object is to promote, assist and advance 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 2025, we continued to implement 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 Jesus-centred [learners and followers of Jesus, with our actions shaped by him] , Kingdomseeking [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:

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

This Strategy is effectively communicated in the following diagram:

Activities & Achievements for the Year

The year 2025 involved the implementation of this strategy, which is partially funded by a £1m-a-year allocation from the national Church of England. Among other things, that involved the recruitment of a ‘Lead for Revive’ and a ‘Lead for Revitalise’ to head up some of this work.

Among the specific areas of development were

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Among other achievements during 2025 were the results of a independent safeguarding audit by INEQE which praised the transformation of safeguarding culture in both our diocese and our cathedral. This progress was evident as our diocese hosted its fourth annual safeguarding conference in September, which examined the issue of ‘trauma’. The diocese also organised its first conference devoted to carbon net zero, hosted by our cathedral, and one church installed solar panels on its roof – one of the first listed buildings to be given permission, where the panels can be seen from the road.

The Diocese of Portsmouth was also behind a long-running campaign, from September 2024 to June 2025, to try to save three Church of England schools on the Isle of Wight from proposed closure. Education officers and our bishop successfully argued that the closure process initiated by the Isle of Wight Council was flawed from the start, which an independent adjudicator confirmed to be the case. The three schools remained open in September 2025.

The Church of England and Roman Catholic Bishops of Portsmouth joined forces to argue for a more compassionate and constructive attitude towards asylum seekers in the wake of protests outside a Southsea hotel. And the diocese shared the story of a churchgoing family who lived inside that hotel, and how the protests gave them flashbacks to their life before seeking asylum in the UK.

Our Bishop’s Lent Appeal raised £9,000 which went towards relief work by Anglican charity USPG and Tearfund, as well as work to transform the lives of sex workers in Portsmouth, run by Vista based at Harbour Church. Our bishop entered the House of Lords for the first time, as one of the 26 most senior Church of England bishops. And HRH the Princess Royal visited St Mary’s Church in Bramshott and Liphook CofE Junior School, to commemorate the involvement of Canadian troops alongside their allies in the First and Second World Wars.

The bishop continued to appoint new clergy to roles throughout 2025, ensuring that the number of vacant parishes remained at a minimum. This is a significant priority, as we believe that having clergy in post makes a huge difference to the Church’s mission and ministry. And there were a significant number of ordinations in the summer, with 10 new deacons and 19 new priests ordained during one day in June.

Education

Portsmouth DBF contributes to the costs for Portsmouth and Winchester Diocesan Board of Education (DBE) which has operated as a separate charity since July 2024 which was a requirement under the National Diocesan Board of Education Measure.

The DBE is linked to the DBF through shared members but is 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. The team’s statutory work

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

continues, and this is formally reported to the DBF and Diocesan Synod annually. Particular challenges and areas of focus over the past year have been addressing falling roll numbers (which is a national issue) which then impacts on school budgets, and school closures. School organisation continues to require our work, relating to Federations, Academisation and informal cooperatives. Recruitment of Headteachers in our Diocese matches the regional and national challenge, where on occasions there is only one applicant or none.

The Education Team takes a leading regional and national role and has been successful in securing grant funding from the Church of England and another national trust for specific areas of work.

Ministry and Discipleship

2025 saw the recruitment and expansion of the Ministry and Discipleship Team, led by the now permanent Director, Revd Andrew Hargreaves. We now have permanent 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 'Growing Faith Enabler', 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 have been funded by the successful December 2024 £5.3million Strategic Ministry and Mission Investment Board (SMMIB) grant with generous assistance from the PDBF to supplement the successful grant.

This team is helping us to implement our vision to be 'A rejuvenating community of Jesus-centred, Kingdomseeking disciples' and roll out our 'Rejuvenate' strategy across the diocese, with 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.

Highlights in the 'Revive' part of our strategy include 15 support Cairns for clergy, a new CME & wellbeing programme, increased coaching capacity, 10 new Pastoral Supervisors, Vocational Support, New Lay Ministry Training and Development pathways and a renewed sense of purpose and confidence for our Readers.

Highlights in the 'Revitalise' part of our strategy include; recruiting and equipping our 64 Anna Chaplains, our first cohort of 10 clergy participating in Youthscape Launchpad training, the roll out of Children’s Essentials training to every parish in the diocese, 10 Vision & Mission Action Planning days for parishes, the start of our Mustard Seed & Rural Strategies, 5 choir churches started and two projects in Urban Priority Areas with children and young people in Leigh Park and Paulsgrove.

Highlights in the 'Renew' part of our strategy include; our first rural church plant of Barn Church in the Meon Valley, the growth of 3 'New Worshipping Communities' in schools under the Flourish programme, the expansion of Harbour Church to Copnor & All Saints sites and the start of a major church revitalisation in Cosham.

As ever, we continue to see the hard work of our vocations team bear fruit under God as He raises up ordinands and lay leaders alike. It is a privilege to serve to see God at work and Jesus known across our diocese and we are grateful to our finance and other service teams in enabling us to continue with God's mission here.

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

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, hospices, the prison, university, further education, schools, retail, and Portsmouth port. The PDBF’s partnership with CSR meant support continued through the Good Neighbours’ Network, serving the diocese but more widely in Hampshire also. CSR also supports community development programmes in parishes in areas of disadvantage with its rapid development programme and is engaged in running two counselling services and supporting children and young people’s mental health.

Future Plans

As we look to the future, we continue our focus on growth in mission towards becoming a rejuvenating community of Jesus-centred, Kingdom-seeking disciples, entering the third year of our diocesan vision and strategy. The work that commenced during 2025 under our Rejuvenate strategy will continue as we enter the second year of our SMMI funding.

Many of the activities noted above are subject to five-year funding and therefore will continue to grow in strength, with learning from the first year helping to direct the work moving forwards.

During 2026 we will also be working towards our next bid for SMMI funding which we plan to submit at the end of the year and have been working with deaneries to identify strategic priorities for 2027-31. These include further support for existing initiatives such as Cairns, Flourish, and Choir Church, as well as the development of a ‘war chest’ of funding under Revitalise for smaller parish mission projects that require a smaller financial catalyst to be launched.

The SMMI bid may also include funding to create or develop worshipping communities in areas of new housing development such as in Berewood, Boorley Green and Welborne, as well as extra support for existing church plants. We should know the outcome of this bid at the end of the year, with a view to commencing the work early in 2027.

We have also been awarded funding to develop our lay ministry provision and look forward to commencing this work during 2026. This includes the creation of a new strata of Authorised Lay Minsters (ALMs), alongside those who are licensed and those who are parish-based, with a new training course for ALMs being launched in September 2026.

There has been a significant change in the financial support from Archbishop’s Council for the 2026-2028 triennium. We expect to benefit from a significant increase in our Low Income Communities Funding which will enable us to provide greater ministry support to some of our most challenged communities.

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Financial Review

Financial Performance

The results for 2025 reflect another challenging year financially, with the overall deficit of £1,349k across all funds before taking into account revaluation of property assets and investments.

Inflationary pressures have continued to impact, and in particular we have experienced above inflationary increase in property costs where we continue to catch up with the programme of repairs delayed due to COVID. As each property is subject to a 5 year cycle of quinquennial inspection, this catch up is nearing completion.

Early figures suggest that parish attendances for 2025 have increased by c1% however as new disciples often don’t begin giving to their parish immediately, pressures on parish finances continue and coupled with the desire for parishes to invest in local ministry, we experience continued pressure on parish share payments.

We wish to express our gratitude to all parishes for their engagement with their parish share payments; during 2025. We have received a payment or a commitment to pay from each and every parish in the diocese.

The new parish share formula was in place during 2025 and the move to the new calculations is being phased in to prevent any significant increases (or reductions) for any individual parish in one year. Parishes have been encouraged to share any concern and challenges around the payment of share with the diocese and whilst there has been just a small improvement in parish share received, there has been increased engagement with parishes and greater understanding of the challenges faced by both parishes and the diocese.

We have continued to invest in mission and ministry with the appointment of clergy to some further key posts, which has been underway since 2023. Planned recruitment was largely completed by the end of the year and we are already starting to see growth in disciples where appointments have been made.

There has been an agreed use of designated funds to support with operations through the general fund during the year. This has led to a reduction of £368k of designated funds.

Across all funds, the overall surplus was £1,841k after revaluations (2024: £1,667k). Much of the surplus is driven by the revaluation of glebe land in Wickham which is expected to be sold for redevelopment during 2026.

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

----- Start of picture text -----
Income for 2025:
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----- Start of picture text -----
Incoming Resources
7%
10% Parish share
Fees
49% Rental income
26% Grants
Investment income
5%3% Other income
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During the year there was an increase of £1,076k of income to £9,413k (2024: £8,337k) across all funds.

The majority of the increase was through restricted funds with the commencement of SMMI funding for the Rejuvenate strategy, for which £406k was received during the year.

There was a modest increase in parish share receipts of £38k.

We also received an increase of £21k in Low Income Community (LINC) grant. This is directed towards those parishes with the highest levels of deprivation to support with mission and ministry.

In addition, new grants awarded during the year included £30k for curacy funding and net zero carbon projects have progressed with national church funding supporting this work.

We have continued to generate rental income from properties during clergy vacancies although a combination of clergy appointments and change in rental legislation have resulted in a reduction in this income of £173k. Investment income (including dividends and interest) has increased by £14k. This is reflective of a small increase to investment income rates despite the fall in investment values. All grant income received in advance is placed on deposit until spent and therefore we have benefitted from interest rates remaining higher than expected throughout the year

Expenditure for 2025:

Resources expended across all funds before any transfers, gains and losses on disposal or revaluations, increased by £1,937k to £10,763k (2024: £8,825k).

Recruitment of stipendiary clergy to key posts continued throughout the year, and investment in training and welfare continued with the new Ministerial Development Review (MDR) process. As well as an

increase in headcount, both stipends and lay staff salaries were uplifted to enable both staff and clergy to manage the impact of the inflationary pressures.

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Catch up of property repairs has continued, and property costs have been subject to above inflationary cost increases. Where possible restricted funds have been used to support with this or works capitalised where they result in an enhancement to the property.

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 £1,521k (2024: £783k).

As with income above, the increase in the total costs across all funds reflects the activity under the Rejuvenate project.

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 £100,779k (2024: £98,938k) 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 £70,339k (2024: £68,832k). 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 £2,516k (2024: £3,017k) which represented 5.5 months (2024: 6.9 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, the Trustees’ policy is to hold not more than 6 weeks’ normal expenditure in cash or on deposit, this being around £1,145k based on the budgeted expenditure for 2026. The reserves at 31 December 2025 equated to around 13 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 manage challenges in the investment market.

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 2025 reduced by £351k to £2,068k (2024: £2,418k), reflecting the strategic use of these funds to support operations, and 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 2025 restricted funds totalled £5,363k (2024: £6,274k) and endowment funds totalled £68,828k (2024: £66,581k). Neither are available for the general purposes of the PDBF.

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

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 2025 is indicated in note 11.

Investment policy and report

In managing its investments, the PDBF continues to receive guidance from its Investment Advisory Group (IAG), and the fund managers, CCLA Investment Management. The level of cash held remains under scrutiny and in principal amounts in cash and deposit are kept as low as possible, allowing for the short term operational requirements,

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.

Funds are only held in the property fund where they are held for the longer term due to the notice period on the fund.

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

  1. A minimum of 6 weeks normal expenditure is to be held in cash and deposit for routine purposes. This money (currently about £1.1m) 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 is maintained in credit.

  2. The Diocesan Secretary following discussion with the IAG is authorised to switch investments managed by CCLA from time to time in order to achieve the Board’s required total return.

  3. Any fund managed by CCLA may be used for the Board`s investments, but no other types of investment may be used without the Board’s prior approval.

  4. The investment managers are instructed to achieve a total return of CPI plus 4% pa net of fees over a 10 year rolling period.

  5. Funds are to be invested in line with the Statement of Ethical Investment Policy, issued by the Church of England Investment Advisory Group.

  6. This policy will be reviewed at least annually by the IAG and any changes approved by the Board

The income from financial investments in 2025 was £912k (2024: £898k) and reflected a 3.4% yield. For the year ended 31 December 2025 the investment portfolio achieved an overall total return of 1.0% (being the increase in market value and the actual income received) (2024: 6.44%).

The benchmark against which each of the individual CCLA funds is compared is disclosed in their quarterly report. The property funds outperformed the selected benchmark in for the year. The investment fund and global equity fund have performed below the benchmark throughout the year as well as the benchmark on an annualised 5 year basis. The performance has been disappointing and the IAG continue to monitor this.

The PDBF's investment strategy continues to be, to maintain a high level of income, and to concentrate on good quality companies and properties with long term growth potential. The property fund’s performance improved to 7.70% (2024: 6.14%) whilst the global equity fund produced a total return of -3.12% (2024: 8.82%). The investment fund resulted in a reduced return of -1.17% (2024: 5.09%). The % allocation of assets to funds was as follows (the decision was made during the year to reduce the holding in global equity

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

funds due to the risk profile:

Investment fund
Property Fund
Global Equity Fund		 2025
2024
92%
80%
8%
12%
0%
8%
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 updated and maintained by the diocesan staff team 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:

Keyrisks and mitigatingactions are as follows:
Key risks How managed
Growth in congregations:the number and age
profile of worshipping communities and of
ministers remains a concern, with a high
proportion in the upper age brackets. This has
potentially far-reaching implications for the aims
and objectives of both the PDBF and each PCC in
the medium to long term.
The diocesan strategy is designed specifically to
address and mitigate these key risks and
uncertainties and, in this way, to continue to fulfil
its charitable aims.		 Significant clergy appointments have continued
during 2025 and we are beginning to see the
impact of these, alongside those made during
2024, with areas of growth and revitalisation
throughout the diocese. As we move into 2026,
appointments are expected to stabilise as we look
to maintain the current levels of stipendiary
ministry.
As part of our Rejuvenation strategy we have
received national funding for the formation of
cairns which have been meeting throughout 2025.
These Cairns are now seeking funding from the
diocese to support ministry at a local 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
costs including stipend and salary levels, especially
in light of recent decisions at General Synod to set
a national stipend level.
Property costs continue to increase at above
inflationary levels.
The impact is also felt by parishes which has an		 Management accounts are reported monthly to
Bishops Staff Team and Audit, Risk & Finance
Committee and finances are discussed at each
Bishop’s Council meeting to enable detailed
oversight of the diocesan finances. Cash flow
forecasts are also updated regularly to aid early
identification of pressure points.
We are undertakingaproject to review all funds

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Key risks How managed
impact
on
parish
share
payments
and
subsequently the diocesan income.		 held as custodian to ensure that these are available
to parishes and the diocese to support with mission
plans where possible.
We continually seek to manage diocesan costs
where possible, including by tendering significant
contracts. For example, our IT provision will be
reviewed in early 2026 with anticipated costs
savings following the initial implementation.
Parish share:Parish share accounts for around 66%
of the diocese’s 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 and
revitalisation of parishes.		 A review of parish share was undertaken during
2024 which included a consultation with parishes
to encourage direct engagement with both PCCs
and individuals. As a result of the review, some
small changes were made to the basis for the
allocation of share, and a comprehensive
document detailing what parish share contributes
to was shared. 2025 was the first year of the new
calculations.
Receipts are closely monitored on a monthly basis
and parish 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.
Generosity week has also become
established as an annual event in the diocese to
encourage stewardship and giving to support
parishes.
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.
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 clergyare not adequately		 Robust recruitment procedures are in place to
ensure that all those employed have the sufficient
skills and training to undertake their roles.
An inductionprogramme is inplace for staff and

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PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Key risks How managed
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.		 clergy joining the diocese.
During 2025, Ministerial Development Reviews
have been reinstated for clergy to ensure
opportunity to identify any training or support
needs.
The HR advisory Board reviews 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 which underpins
operations. Any reduction in these grants places
additional reliance on parish share and use of
reserves to meet any shortfall.		 PDBF engaged fully with the national review of
diocesan finances which fed into the triennium
spending plans and have continued to share the
impact of the outcomes of these plans.
Key
members
of
staff
maintain
open
communication with grantors to ensure that they
can feed into any consultations around changes to
funding and access any additional grants as and
when they become available.
Governance:The work of the diocese is dependent
on good governance, trust and transparency, and
confidence in the culture and decision making.		 Committee membership is reviewed regularly to
ensure
that
decision
making
groups
are
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
representative of Bishop’s Council) either as a full
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
adults remains a key priority to the diocese as it is
a Gospel imperative and at the heart of who we are		 The DBF was audited by INEQE during 2025 which
is
part
of
the
5-year
audit
programme
commissioned by Archbishop’s Council.
The

16

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Key risks How managed
and what we do. results of the audit were encouraging, and agreed
recommendations are being implemented.
Safeguarding is discussed at each Bishops Council
meeting as well as at each meeting of Bishops Staff
Team and at Diocesan Synods. The team are also
supported
by
the
independent
Diocesan
Safeguarding Advisory Panel.
The diocese invests in suitable trained officers and
training and support of parishes and schools. In
recent years the staffing level within the team has
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.

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 Diocese and it agrees and lays before Parliament, Measures for the governance of the church’s affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops’ Council has a coordinating role for work authorised by the Synod; the Church Commissioners 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

17

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

parish contributions to be sought from parishes under the Parish Share system. The Directors also form the Bishop’s Council (Standing Committee of the Diocesan Synod), the Diocesan Mission and Pastoral Committee, and the Diocesan Parsonages Board. These arrangements achieve the uniting of the Diocese’s 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 bishop. Bishop’s Council is also supported by employed staff as appropriate.

Trustee recruitment, selection, and induction

Trustees are members of the Bishop’s Council & Standing Committee and are selected as set out above. 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 Synod each year receives and agrees the annual budget, prepared, and approved by the PDBF.

The Trustees, meeting within the context of the Bishop’s Council and Standing Committee, normally hold eight meetings during the year to:

The Trustees are assisted in their work by several sub-committees and there is a flow of work through those groups thus making effective recommendations to the trustees in Bishop’s Council: -

18

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

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, Risk & Finance Committee bring recommendations to Bishop’s Council.

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.

Related Parties

The PDBF is required to comply with Measures passed by the General Synod of the Church of England and is required to make annual payments to the Archbishops’ Council towards the costs and the national 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, as well as other project related grant funding such as Net Zero Carbon and SMMI. 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 the 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 HR Advisory Board with reference to cost-of-living, movements in clergy and national church staff pay. Emoluments of higher-paid employees are determined in consultation with our HR advisors based on the relevant job descriptions.

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 PDBF does not control them. They are segregated from the PDBF’s own

19

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

assets by means of a separate bank account and accounting system. Further details of financial trust assets, whose market value amounted to £9,788k at 31 December 2025 (2024: £10,193k), are available from the PDBF on request, and are summarised in note 26. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by the PDBF’s solicitor, Messrs 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 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 2025 is £2,062k (2024: £1,237k). The income and expenditure relating to school projects not reflected in the Statement of Financial Activities amounted to £2,066,608 and £1,404,822 respectively in 2025 (2024: £1,887,696 and £1,782,584).

Trustees’ Responsibilities

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:

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 included in the PDBF’s website. Legislation in England and Wales governing the preparation and

20

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.

Following the change to the Charity Governance Code in November 2025, we are in the process of reviewing all activities and processes to ensure that we remain fully compliant with the Charity Governance Code which covers eight areas:

Trustees confirm that they have referred and had due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the DBF’s aims and objectives and in planning future activities.

Statement of Disclosure to the Auditors

So far as the Trustees are aware:

Appointment of Auditors

On 17 September 2025, Crowe UK LLP were appointed as auditors. The re-appointment of Crowe will be proposed at the Annual General Meeting,

21

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

Administrative Details

Trustees

No Trustee had any beneficial interest in the company during 2025.

General Synod Members can be in attendance at all meetings of Bishop’s Council; Portsmouth has 6 members of General Synod at any one time (3 lay and 3 ordained).

The following are the Trustees who served at any time during 2025 and those that are now serving from the start of 2026 covering the period up to the date of this report along with details of those in attendance: -

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

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 Kathryn Percival (Archdeacon of the Meon) The Revd Canon Robert White (Archdeacon of Portsdown, appointed 7 September 2025) The Ven Steve Daughtery (Archdeacon of Isle of Wight, resigned 20 April 2025) 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: Canon Philip Poulter

b) Elected by House of Clergy

Revd Amy Adeniran Revd Ray Driscoll (appointed 27 January 2025) Revd James Hunt Revd Dr Coleen Jackson Revd David Morgan Revd Adam Tams (resigned 19 October 2025)

c) Elected by House of Laity

Oyinlolu Alonge (appointed 24 March 2025) Canon Lucy Docherty Canon John Gwynn (appointed 1 April 2025) Canon Adrian Jordan Mr Steven Smart

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

22

PORTSMOUTH DIOCESAN BOARD OF FINANCE ANNUAL REPORT For the year ended 31 December 2025

d) Members in Attendance

From 1[st] January 2025 to the date of this report, 2 General Synod members are also voting members of Council in either ex officio or elected capacities (Rev Canon R White, Canon Lucy Docherty). Therefore, 4 members of General Synod (Mrs Rebecca Hunt, Mr Ian Johnston, Revd Andrew Hargreaves and Revd Dr Paul Chamberlain) are in attendance.

Senior staff and advisers

Diocesan Secretary Philip Poulter Director of Ministry and Discipleship Andrew Hargreaves 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

Bankers Barclays PLC,PO Box 165,Crawley,RH10 1YX
Auditors Crowe UK LLP,Black CountryHouse,Rounds Green Road,OldburyB69 2DG
Solicitors & registrar Batt Broadbent LLP,Minster Chambers,42-44 Castle Street,Salisbury,SP1 3TX
Investment Advisers CCLA,80 Senator House,85Queen Victoria Street,London,EC4V 4ET
Glebe Agents Carter Jonas LLP,9-10 JewryStreet,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

ON BEHALF OF THE TRUSTEES

+Jonathan Frost

+Jonathan Frost (Jun 24, 2026 15:19:08 GMT+1)

The Right Revd Jonathan Frost

Chairman

18 May 2026

P A Poulter

P A Poulter (Jun 3, 2026 08:05:17 GMT+1)

Philip Poulter

Diocesan Secretary

18 May 2026

23

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF PORTSMOUTH DIOCESAN BOARD OF FINANCE For the year ended 31 December 2025

Independent Auditor’s Report to the Members of Portsmouth Diocesan Board of Finance

Opinion

We have audited the financial statements of Portsmouth Diocesan Board of Finance for the year ended 31 December 2025 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

24

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

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In 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 strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 20, 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 company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

25

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

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charities SORP (FRS 102), and [local] tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the charitable company’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We also considered the opportunities and incentives that may exist within the charitable company for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of grant income and parish contributions. Our audit procedures to respond to these risks included enquiries of management and the Audit, Finance and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission, sample testing grant agreements, verifying parish contributions to bank and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

26

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

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.

Helen Blundell LLB FCA FCIE DChA

Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date: 14/07/2026

27

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

STATEMENT OF FINANCIAL ACTIVITIES

At 31 December 2025

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 2024 is included in note 27.

The notes on pages 31 to 60 form part of the financial statements.

28

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

BALANCE SHEET

At 31 December 2025

Revaluation reserves of the following amounts are included within the above funds: endowment funds £28.0m (2024: £25.0m), restricted funds £1.8m (2024: £2.0m), designated funds £1.5m (2024: £1.5m), general funds £5.3m (2024: £5.3m).

The Notes on pages 31 to 60 form part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 18[th] May 2026 and signed on behalf of the Board by:

+Jonathan Frost

+Jonathan Frost (Jun 24, 2026 15:19:08 GMT+1) The Right Revd Jonathan Frost

29

PORTSMOUTH DIOCESAN BOARD OF FINANCE

Company No: 226466

STATEMENT OF CASHFLOWS At 31 December 2025

2025
Net cash flow from operating activities
Net cash used in operating activities
(1,661,961)
Cash flows from investing activities
Dividends, interest and rent from investments
1,004,975
Purchase of property and equipment
(1,009,714)
Purchase of investments
(1,470,232)
Sale of property and equipment
385,000
Sale of investments
Net cash provided by investing activities
3,746,592
2,656,621
Cash flows from financing activities
Cash inflows from new borrowing
-
Net cash used in financing
-
Change in cash and cash equivalents in the reporting period
994,660
Cash and cash equivalents at 1 January
5,886,969
Cash and cash equivalents at 31 December
6,881,629
Reconciliation of net income to net cash flow from operating activities
2025
Net income for the year ended 31 December
956,034
Adjustments for:
Depreciation charges
36,789
Gains on investments
(2,305,411)
Dividends, interest and rent from investments
(1,004,975)
Gain on sale of functional assets
(10,000)
(Gain)/loss on disposal of investments
(24,710)
(Increase)/decrease in operating debtors
(107,559)
Increase/(decrease) in operating creditors
797,871
Net cash provided by operating activities
(1,661,961)
Analysis of net debt
Cash at bank and in hand
248,948
Cash on deposit
6,632,681
Bank/other loan
(287,500)
Total net debt
6,594,129		 2024
(1,944,846)
928,296
(726,698)
(637,039)
611,074
1,489,183
1,664,816
287,500
287,500
7,470
5,879,499
5,886,969
2024
41,489
51,233
(529,427)
(1,004,343)
(97,354)
47,163
207,976
(661,583)
(1,944,846)
548,456
5,338,513
(287,500)
5,599,469		 2024
(1,944,846)
928,296
(726,698)
(637,039)
611,074
1,489,183
1,664,816
287,500
287,500
7,470
5,879,499
5,886,969
2024
41,489
51,233
(529,427)
(1,004,343)
(97,354)
47,163
207,976
(661,583)
(1,944,846)
548,456
5,338,513
(287,500)
5,599,469
287,500
7,470
5,879,499
5,886,969
2024
41,489
51,233
(529,427)
(1,004,343)
(97,354)
47,163
207,976
(661,583)

Net income for the year ended 31 December
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interest and rent from investments
Gain 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
Cash at bank and in hand
Cash on deposit
Bank/other loan
Total net debt
(1,944,846)

548,456
5,338,513
(287,500)

5,599,469

30

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

1. 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. After reviewing the charity’s forecasts and projections, the Trustees have a 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.

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.

31

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

1. ACCOUNTING POLICIES (CONTINUED)

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.

32

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

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.

Due to the length of time properties have been held by the Board and the unavailability of historical accounting records it is not possible to provide a historical cost valuation for Board and benefice houses

Computer equipment

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

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.

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

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.

33

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

1. ACCOUNTING POLICIES (CONTINUED)

“Special trusts” (as defined by the Charities Act 2011) and any other trusts where the company acts as trustee and controls the management and use of the funds, are included in the company’s own financial 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:

34

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

2 DONATIONS

2
DONATIONS
2a
Parish Contributions
2025
Parish share requested
Short fall against cash received
Payments received
Amounts received for prior year
Parish share receivable		 Unrestricted funds
Restricted
Endowment
Total funds
General
£
5,379,471
Designated
£
-
funds
£
-
funds
£
-
2025
£
5,379,471
(853,539)
-
-
-
(853,539)
4,525,932
-
-
-
4,525,932
22,207
-
-
-
22,207
4,548,139
-
-
-
4,548,139
2024
Parish share requested
Short fall against cash received
Payments received
Amounts received for prior year
Parish share receivable		 Unrestricted funds
Restricted
Endowment
Total funds
General
£
5,222,779
Designated
£
-
funds
£
-
funds
£
-
2024
£
5,222,779
(745,463)
-
-
-
(745,463)
4,477,316
-
-
-
4,477,316
33,298
-
-
-
33,298
4,510,614
-
-
-
4,510,614

The majority of donations are collected from parishes of the diocese through the parish share system. Current year parish share receipts represent 84.1% of the total apportioned (2024: 85.7%) or when receipts for previous years are included, 84.5% (2024: 86.4%) of the amount requested.

2b Archbishops’ Council

2025
Lowest income community funding
Church Commission grant for Resourcing
Ministerial Education
Strategic Development Fund
Strategic Ministry and Mission
Investment funds
Net Zero Carbon Funding
Other Archbishops' Council Grants		 Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2025
£
£
£
£
£
618,178
-
-
-
618,178
-
-
26,900
-
26,900
-
-
714,725
-
714,725
-
-
859,863
859,863
-
-
35,500
-
35,500
-
-
174,575
-
174,575
618,178
-
1,811,563
-
2,429,741
2024
Lowest income community funding
Church Commission grant for Resourcing
Ministerial Education
Strategic Development Fund
Net Zero Carbon Funding
Other Archbishops' Council Grants		 Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
£
£
597,563
-
funds
£
-
funds
£
-
2024
£
597,563
-
-
21,700
-
21,700
-
-
521,335
-
521,335
-
-
42,100
-
42,100
-
-
118,990
-
118,990
597,563
-
704,125
-
1,301,688

35

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

2c Other donations

2025
Benefact Trust
Donations
2024
Benefact Trust
Donations		 Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2025
£
£
£
£
£
70,795
-
-
-
70,795
3,770
-
214,000
-
217,770
74,565
-
214,000
-
288,565
Unrestricted funds
Restricted
Endowment
Total funds
General
£
84,280
Designated
£
-
funds
£
-
funds
£
-
2024
£
84,280
1,980
-
67,000
-
68,980
86,260
-
67,000
-
153,260

3 CHARITABLE ACTIVITIES

3
CHARITABLE ACTIVITIES
2025
Statutory fees and chaplaincy income
Miscellaneous income
Section income:
Education
Ministry Support
Social Transformation
2024
Statutory fees and chaplaincy income
Miscellaneous income
Section income:
Education
Ministry support
Social Transformation		 Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2025
£
£
£
£
£
301,639
-
-
-
301,639
81,542
25,082
3,681
-
110,305
15,535
-
-
-
15,535
67,592
-
-
-
67,592
205,432
-
-
-
205,432
671,740
25,082
3,681
-
700,503
Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2024
£
£
£
£
£
325,245
-
-
-
325,245
50,803
23,217
10,000
-
84,020
60,050
-
-
-
60,050
61,448
-
-
-
61,448
135,129
-
-
-
135,129
632,675
23,217
10,000
-
665,892

36

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

4 OTHER TRADING ACTIVITIES

2025
Rental income from properties
2024
Rental income from properties
5
INVESTMENT INCOME
2025
2024
Dividends receivable
Interest receivable
Rents receivable
6
OTHER INCOME
2025
Gain on sale of properties
2024
Gain on sale of properties
Dividends receivable
Interest receivable
Rents receivable		 Unrestricted funds
Restricted
Endowment
Total funds
General
£
395,565
Designated
£
-
funds
£
35,650
funds
£
-
2025
£
431,215
395,565
-
35,650
-
431,215
Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
£
£
559,539
-
funds
£
44,499
funds
£
-
2024
£
604,038
559,539
-
44,499
-
604,038
Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2025
£
£
£
£
£
370,693
27,429
157,658
92,035
647,815
102,582
80,591
60,436
20,843
264,452
92,708
-
-
-
92,708
565,983
108,020
218,094
112,878
1,004,975
Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
funds
funds
2024
£
£
£
£
£
378,691
43,362
177,712
86,041
685,806
129,090
37,756
33,875
11,835
212,556
105,981
-
-
-
105,981
613,762
81,118
211,587
97,876
1,004,343
Unrestricted funds
Restricted
Endowment
Total funds
General
£
10,000
Designated
£
-
funds
£
-
funds
£
-
2025
£
10,000
10,000
-
-
-
10,000
Unrestricted funds
Restricted
Endowment
Total funds
General
Designated
£
£
97,354
-
funds
£
-
funds
£
-
2024
£
97,354
97,354
-
-
-
97,354

37

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

7
FUND RAISING COSTS
2025
2024
Glebe agent's fees and repairs
Management fees of rentals
8
CHARITABLE ACTIVITIES
2025
Contributions to Archbishops' Council
Training for ministry
National church responsibilities
Grants and provisions
Mission agency pension contributions
Retired clergy housing costs
Resourcing ministry and mission
Training for ministry
Parish ministry:
Stipends and national insurance
Pension costs
Housing costs
Removal, resettlement & other grants
Other expenses
Support for ministry and mission
Ministry and Discipleship
Education
Mission development
Mission Support
Social transformation
Governance
Legal and registrar
Glebe agent's fees and repairs
Management fees of rentals		 Unrestricted funds
Restricted
Endowment
Total funds
General
£
13,770
Designated
£
-
funds
£
-
funds
£
-
2025
£
13,770
24,944
-
-
-
24,944
38,714
-
-
-
38,714
Unrestricted funds
Restricted
Endowment
Total funds
General
£
11,866
Designated
£
-
funds
£
-
funds
£
-
2024
£
11,866
43,484
-
-
-
43,484
55,350
-
-
-
55,350
Unrestricted funds
Restricted
Endowment
Total funds
General
£
Designated
£
funds
£
funds
£
2025
£
58,319
-
-
-
58,319
113,831
-
-
-
113,831
20,060
-
-
-
20,060
6,490
-
-
-
6,490
82,936
-
-
-
82,936
281,636
-
-
-
281,636
167,384
-
27,848
-
195,232
2,992,847
-
72,928
-
3,065,775
524,138
-
16,847
-
540,985
1,574,489
36,897
2,094
-
1,613,480
167,654
-
-
-
167,654
259,612
258,265
1,927,998
-
2,445,875
5,686,124
295,162
2,047,715
-
8,029,001
266,036
-
-
-
266,036
190,468
-
-
-
190,468
701,762
-
-
-
701,762
766,288
-
-
-
766,288
311,134
-
-
-
311,134
35,631
-
-
-
35,631
127,024
-
14,820
-
141,844
2,398,344
-
14,820
-
2,413,164
8,366,104
295,162
2,062,535
-
10,723,801

38

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

8 CHARITABLE ACTIVITIES (CONTINUED)

2024
Contributions to Archbishops' Council
Training for ministry
National church responsibilities
Grants and provisions
Mission agency pension contributions
Retired clergy housing costs
Resourcing ministry and mission
Training for ministry
Parish ministry:
Stipends and national insurance
Pension costs
Housing costs
Removal, resettlement & other grants
Other expenses
Support for ministry and mission
Ministry and Discipleship
Education
Mission development
Mission Support
Social transformation
Governance
Legal and registrar		 Unrestricted funds
Restricted
Endowment
Total funds
General
£
Designated
£
funds
£
funds
£
2024
£
168,051
-
-
-
168,051
111,233
-
-
-
111,233
19,162
-
-
-
19,162
-
-
-
-
-
77,498
-
-
-
77,498
375,944
-
-
-
375,944
169,828
-
19,598
-
189,426
-
2,695,679
-
22,713
-
2,718,392
546,290
-
4,466
-
550,756
1,312,875
36,139
2,438
-
1,351,452
158,696
-
-
-
158,696
168,883
189,967
669,301
-
1,028,151
5,052,251
226,106
718,516
-
5,996,873
240,846
-
-
-
240,846
194,895
-
-
-
194,895
691,885
-
691,885
882,883
-
-
-
882,883
239,826
-
-
-
239,826
33,894
-
-
-
33,894
112,731
-
-
-
112,731
2,396,960
-
-
-
2,396,960
7,825,155
226,106
718,516
-
8,769,777

39

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

9 ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

2025
Raising funds
Contributions to Archbishops' Council
Parish Ministry
Support for Ministry and Mission
Education
2024
Raising funds
Contributions to Archbishops' Council
Parish Ministry
Support for Ministry and Mission
Education
10
ANALYSIS OF SUPPORT COSTS
2025
2024
Central administration
Governance
Central administration
Governance		 Activities
Grant
Undertaken
Funding of
Support
TOTAL
Directly
Activities
Costs
2025
£
£
£
£
38,714
-
-
38,714
-
281,636
-
281,636
7,860,358
168,643
-
8,029,001
2,150,274
-
72,422
2,222,696
-
190,468
-
190,468
10,049,346
640,747
72,422
10,762,515
Activities
Grant
Undertaken
Funding of
Support
TOTAL
Directly
Activities
Costs
2024
£
£
£
£
55,350
-
-
55,350
-
375,944
-
375,944
5,829,282
167,591
-
5,996,873
2,266,225
-
70,684
2,336,910
60,050
-
-
60,050
8,210,907
543,535
70,684
8,825,126
Unrestricted funds
Restricted
Endowment
Total funds
General
£
36,790
Designated
£
-
funds
£
-
funds
£
-
2025
£
36,790
35,632
-
-
-
35,632		 Activities
Grant
Undertaken
Funding of
Support
TOTAL
Directly
Activities
Costs
2025
£
£
£
£
38,714
-
-
38,714
-
281,636
-
281,636
7,860,358
168,643
-
8,029,001
2,150,274
-
72,422
2,222,696
-
190,468
-
190,468
10,049,346
640,747
72,422
10,762,515
Activities
Grant
Undertaken
Funding of
Support
TOTAL
Directly
Activities
Costs
2024
£
£
£
£
55,350
-
-
55,350
-
375,944
-
375,944
5,829,282
167,591
-
5,996,873
2,266,225
-
70,684
2,336,910
60,050
-
-
60,050
8,210,907
543,535
70,684
8,825,126
72,422
-
-
-
72,422
Unrestricted funds
Restricted
Endowment
Total funds
General
£
36,790
Designated
£
-
funds
£
-
funds
£
-
2024
£
36,790
33,894
-
-
-
33,894
70,684
-
-
-
70,684

10 ANALYSIS OF SUPPORT COSTS

Auditors’ remuneration for the year was £27,000 (2024: £20,490) and the cost of operating lease rentals was £9,615 (2024: £25,256).

40

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

11 ANALYSIS OF GRANTS

12 STAFF COSTS

Employee costs during the year were as follows:

Included in the above are settlement payments totalling £12,717 (2024: £2,500).

41

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

12 STAFF COSTS (CONTINUED)

PDBF continues to use the historical surplus on the lay staff DBS to offset current pension contributions for lay staff. The monies are held by the Church of England Pension Board.

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, 6 members of staff are funded under the Strategic Development and Strategic Ministry and Mission funds, 2 funded under the Net Zero Carbon funds and 1 funded under the Church Building Support Officer funds.

The finance team for the PDBF are a shared team with Winchester Diocesan Board of Finance (WDBF). The majority are employed by WDBF and the costs of these team members 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.

During the prior year, the staff team included above under Education were also shared with the WDBF. Two thirds of the cost of this team were 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.

42

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

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 £4,352 (2024: £17,862) 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 2025 they were:

Diocesan Secretary Philip Poulter
Director of Ministry and Discipleship Revd Andrew Hargreaves
Head of Social Transformation Nick Ralph (10%)
Director of Communications Neil Pugmire
Head of Safeguarding Emily Hassan
Head of Finance Elaine Coe

Remuneration, pensions and expenses for these 6 employees (2024: 8) amounted to £392,281 (2024: £406,876).

Trustees’ emoluments

No Trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses totalling £5,767 (2024: £15,726) 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 (2024: nil).

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:

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

Philip Poulter

43

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

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 84.0 (2024: 78.5) stipendiary clergy as officeholders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

13 ANALYSIS OF TRANSFERS BETWEEN FUNDS

2025
Transfer of investment income to support operating
costs
Agreed use of designated funds to support with
operating costs
To support costs of choir church
Transfer of assets after pastoral scheme
Transfer for purchase of property
Transfer for sale of property
Portsmouth share of Interest earned by P&WCSG Fund
Transfer for previous years costs
For ordinand costs
Reflect demonstrator project costs included in property
repairs
Transfer to diocesan conference fund
Transfer cost of education team activities
Transfer for office repair costs
Transfer for property enhancements
Other small fund transfers and amalgamations		 Unrestricted funds
Restricted
Endowment
General
Designated
funds
funds
£
£
£
£
116,521
-
(116,521)
-
154,529
(154,529)
-
-
16,254
(16,254)
-
-
523,341
-
-
(523,341)
990,000
-
(990,000)
-
(385,000)
-
385,000
-
-
-
7,420
-
-
(7,420)
574,703
-
-
(574,703)
11,660
-
(11,660)
-
26,355
-
(26,355)
-
(8,000)
8,000
-
-
233,801
-
(233,801)
-
(20,000)
20,000
-
-
-
-
-
19,711
-
-
-
(19,711)
984
2,085
(3,532)
462
2,235,148
(140,698)
(996,868)
(1,097,582)

Further details of the transfers are included in note 19.

44

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

13 ANALYSIS OF TRANSFERS BETWEEN FUNDS (CONTINUED)

14 TANGIBLE FIXED ASSETS

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.

45

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

14 TANGIBLE FIXED ASSETS (continued)

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.

15 FIXED ASSETS INVESTMENTS

16 DEBTORS

The parish share receivable relates to amounts received in January 2025 relating to 2024 parish share requests and are treated as accrued income in the accounts. Any payments against arrears received after this date will be recorded as 2026 income.

46

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

17 CREDITORS: amounts falling due within one year

Deferred income relates to rental income received in advance which is fully released in the subsequent year, and Strategic Ministry and Mission funding 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.

Analysis of movement in deferred income:

18 CREDITORS: amounts falling due after more than one year

The loan balance is an amount due to the 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.

47

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

19 SUMMARY OF FUND MOVEMENTS

2025
Unrestricted funds - General
Unrestricted funds - Designated
Brown, Doig, Silver Bequest
Diocesan Conference Fund
Diocesan Loan Fund
Parsonages Repairs Fund
CME Fund
Valpy Bequest
Winterbotham Legacy
Office Repair Fund
Mission Fund
Lambeth Conference Fund
Evangelism Fund
Catherington House Fund
Sustainability Fund
Reader board		 Balances at
1 January
Gains and
Balances at
31 December
2025
Income
Expenditure
Transfers
losses
2025
£
£
£
£
£
£
23,664,063
6,884,170
(8,404,818)
2,235,148
140,670
24,519,233
65,824
-
-
(8,625)
(2,583)
54,616
65,539
3,374
-
8,000
-
76,913
338,002
9,055
-
(2,653)
(13,349)
331,055
292,107
12,496
(35,587)
(50,000)
(645)
218,371
146,122
10,675
(1,266)
-
-
155,531
37,016
-
-
(35,636)
(1,380)
-
150,774
5,797
-
(27,530)
(4,235)
124,806
107,276
3,192
(31,969)
20,000
(2,532)
95,967
407,880
51,196
(201,851)
(16,254)
-
240,971
8,715
-
-
-
-
8,715
110
-
(110)
-
-
-
695,156
22,225
(8,616)
-
(23,808)
684,957
86,191
4,565
-
(28,000)
-
62,756
18,273
10,527
(15,763)
-
-
13,037
2,418,985
133,102
(295,162)
(140,698)
(48,531)
2,067,696

48

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

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
Energy Grant
Net Carbon Zero
Church Building Support Officer
Minor Repairs and Improvements
Flourish
Quick Wins
Strategic Mission and Ministry -
Rejuvenation
Additional stipendiary ministry
Demonstrator
Curacy funding
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 Fund
Glebe Property
Glebe House Cottage Trust
Hayling St M Curacy End
Lambert Loan Fund
Glebe Capital
Total Funds		 Balances at
Balances at
1 January
2025
Income
Expenditure
Transfers
Gains and
losses
31 December
2025
£
£
£
£
£
£
8,238
300
-
-
(231)
8,307
115,090
-
-
-
(4,601)
110,489
3,970
22
(453)
(3,532)
-
7
272
14
-
-
-
286
19,731
1,065
-
-
-
20,796
125,374
-
(2,000)
-
(2,991)
120,383
25,235
-
-
-
(1,003)
24,232
1,404,793
52,687
-
-
(49,758)
1,407,722
139,472
4,956
-
-
(5,646)
138,782
15,740
48,382
(34,501)
-
-
29,621
2,216,028
57,431
(7,094)
(721,521)
(42,117)
1,502,727
39,107
22,610
(15,190)
(7,420)
-
39,107
53,301
1,689
-
-
(1,857)
53,133
510,650
16,985
(500)
-
(16,686)
510,449
1,391,553
87,041
(16,516)
(226,381)
(9,168)
1,226,529
105,047
26,900
(106,270)
(11,660)
-
14,017
(452)
714,724
(733,499)
-
-
(19,227)
14,834
-
-
-
-
14,834
(1,207)
39,807
(39,949)
9,179
-
7,830
9,845
28,088
(20,614)
-
-
17,319
62,857
38,728
(85,662)
(1,082)
-
14,841
20,134
90,234
(71,806)
-
-
38,562
10,873
24,906
(26,671)
(297)
-
8,811
(16,713)
860,046
(843,333)
-
-
-
-
81,785
(8,775)
-
-
73,010
-
54,000
(19,125)
(34,155)
-
720
-
30,588
(30,577)
-
-
11
6,273,771
2,282,988
(2,062,535)
(996,868)
(134,059)
5,363,297
45,565,497
-
-
(503,630)
435,233
45,497,100
1,891,200
9,387,714
28,853
-
-
-
-
(594,414)
(29,235)
(305,080)
1,890,818
8,488,220
587,415
16,829
-
-
(18,743)
585,501
200,448
-
-
-
(8,402)
192,046
37,548
-
-
-
(1,574)
35,974
1,153
-
-
10
(44)
1,119
270,804
-
-
-
(10,459)
260,345
46,822
-
-
397
(1,860)
45,359
1,290,041
59,775
-
-
(8,637)
1,341,179
6,940,924
-
-
-
3,220,708
10,161,632
5,357
-
-
44
(213)
5,188
1,502
-
-
11
(57)
1,456
225,980
7,420
-
-
(6,570)
226,830
128,787
-
-
-
(33,210)
95,577
66,581,192
112,877
-
(1,097,582)
3,231,857
68,828,344
98,938,011
9,413,137
(10,762,516)
1
3,189,937
100,778,570

The overdrawn fund balance on the Strategic development fund reflects additional grant due to be claimed.

49

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

19 SUMMARY OF FUND MOVEMENTS (CONTINUED)

50

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

19 SUMMARY OF FUND MOVEMENTS (CONTINUED)

20 SUMMARY OF ASSETS BY FUND

20
SUMMARY OF ASSETS BY FUND
2025
Unrestricted funds - General
Unrestricted funds - Designated
Brown, Doig, Silver Bequest
Diocesan Conference Fund
Diocesan Loan Fund
Parsonages Repair Fund
CME Fund
Valpy Bequest
Winterbotham Legacy
Office Repair Fund
Mission Fund
Lambeth Conference Fund
Evangelism Fund
Catherington House Fund
Sustainability Fund
Reader board		 Fixed
Tangible
£
22,003,579		 Assets
Current
Net
Investments
£
Assets
£
Liabilities
£
Assets
£
2,254,940
906,637
(645,923)
24,519,233
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 54,616
-
-
54,616
-
76,913
-
76,913
-
331,055
-
331,055
18,756
199,615
-
218,371
-
155,531
-
155,531
-
-
-
-
103,222
21,584
-
124,806
60,798
35,169
-
95,967
-
240,971
-
240,971
-
8,715
-
8,715
-
-
-
-
521,980
162,977
-
684,957
-
62,756
-
62,756
-
13,037
-
13,037
- 759,373
1,308,323
-
2,067,696

51

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

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
Corban Trust
Eckersley Clergy families
Education Restricted
Resourcing Ministerial Education
Strategic Development
Ministry Hardship Fund
Energy grant
Net Carbon Zero
Church Building Support Officer
Minor Repairs and Improvements
Flourish
Quick Wins
Strategic Mission and Ministry - Rejuvenation
Additional stipendiary ministry
Demonstrator funding
Curacy funding
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 Fund
Glebe Property
Glebe House Cottage Trust
Hayling St M Curacy End
Lambert Loan Fund
Glebe Capital
Total Funds		 Fixed Assets
Current
Net
Tangible
Investments
Assets
Liabilities
Assets
£
£
£
£
£
-
5,542
2,765
-
8,307
-
110,489
-
-
110,489
-
-
649
(642)
7
-
-
286
-
286
-
-
20,796
-
20,796
-
72,869
47,514
-
120,383
-
24,079
153
-
24,232
-
1,314,567
93,155
-
1,407,722
-
137,147
1,635
-
138,782
-
-
29,621
-
29,621
-
825,374
677,353
-
1,502,727
-
-
2,101,280
(2,062,173)
39,107
-
44,582
8,551
-
53,133
-
400,688
109,761
-
510,449
-
678,871
547,658
-
1,226,529
-
-
14,017
-
14,017
-
-
(19,227)
-
(19,227)
-
-
-
-
-
-
-
14,834
-
14,834
-
-
7,830
-
7,830
-
-
17,319
-
17,319
-
-
14,841
-
14,841
-
-
38,562
-
38,562
-
-
8,811
-
8,811
-
-
83,908
(83,908)
-
-
-
73,010
-
73,010
-
-
720
-
720
-
-
11
-
11
-
3,614,207
3,895,813
(2,146,723)
5,363,297
45,614,923
-
(117,823)
-
45,497,100
-
1,047,271
843,547
-
1,890,818
-
-
8,488,220
-
-
8,488,220
-
450,084
135,417
-
585,501
-
201,753
(9,707)
-
192,046
-
37,793
(1,819)
-
35,974
-
1,048
71
-
1,119
-
272,198
(11,853)
-
260,345
-
44,686
673
-
45,359
-
1,267,942
73,238
-
1,341,179
2,720,762
7,015,000
425,870
-
10,161,632
-
5,105
83
-
5,188
-
1,364
92
-
1,456
-
157,758
69,072
-
226,830
-
91,782
3,795
-
95,577
48,335,686
19,082,002
1,410,656
-
68,828,344
70,339,265
25,710,523
7,521,429
(2,792,647)
100,778,570

52

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

20 SUMMARY OF ASSETS BY FUND (CONTINUED)

53

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

20 SUMMARY OF ASSETS BY FUND (CONTINUED)

21 DESCRIPTION OF FUNDS

54

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

21 DESCRIPTION OF FUNDS (CONTINUED)

55

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

22 OPERATING LEASES

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

23 ANALYSIS OF CHANGES IN NET DEBT

Cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year
TOTAL		 As at 1st
As at 31st
January
December
2025
Cashflows
Other
2025
£
£
£
£
5,886,969
994,661
-
6,881,629
-
-
-
-
(287,500)
-
-
(287,500)


5,599,469
994,661
-
6,594,129

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 attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year which were £584,232 (2024: £566,346), plus any figures arising from contributions in respect of the Scheme’s deficit (see below).

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

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

56

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

24 PENSIONS (CONTINUED)

The 2024 valuation reflects the benefit improvements that the General Synod agreed in principle in July 2025 (and confirmed in February 2026).

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 and 31 December 2025 is nil.

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

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:

  1. the Defined Benefits Scheme

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

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

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

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 possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2025: £nil, 2024: £51,917).

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

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

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

The Church of England Pensions Board has agreed that some employers could use assets in the DBS of the CWPF in lieu of contributions to Pension Builder Classic and/or Pension Builder 2014.

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

57

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

24 PENSIONS (CONTINUED)

Pension Builder Scheme

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

Portsmouth DBF (DBS) participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

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

  3. a. a deferred annuity section known as Pension Builder Classic, and, b. a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme

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

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

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

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

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

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

The next actuarial valuation is due at 31 December 2025.

In 2024, the Board entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF. It was also agreed that some employers could use assets in the DBS in lieu of contributions to Pension Builder Classic and/or Pension Builder 2014.

Over the year to 31 December 2025, £213,032 of surplus assets from DBS has been used to fund contributions in Pensions Builder Classic for Portsmouth DBF (DBS).

58

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

24 PENSIONS (CONTINUED)

The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2024 or 31 December 2025.

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

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 £203,337 (2024: £132,967). The PDBF has also supported the work of the PDCSR for several years and in 2025 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 £190,468 (2024: £86,666). The PDBF provided free use of office space to the DBE.

During the year, PDBF incurred costs of £175 for the provision of expertise in relation to the appointment of new auditors by John Gwynn, a trustee. This amount was outstanding at 31 December 2025 and is included in accruals.

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:

59

PORTSMOUTH DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025

27 STATEMENT OF FINANCIAL ACTIVITIES PRIOR YEAR

Income and endowments from
Donations
Note
Parish contributions
2a
Archbishops’ Council
2b
Other donations
2c
Charitable activities
3
Other trading activities
4
Investments
5
Other
6
Total
Expenditure on:
Raising funds
7
Charitable activities
8
Total
9
Net income/(expenditure) before
investment gains/(losses)
Net gains on investments
15
Net income
Transfers between funds
13
Other recognised gains/(losses)
Gains on revaluation of
fixed assets
Gain/(loss) on disposal of
investments
Remeasurement of pension
scheme provision
Net movement in funds
Total funds at 1 January
Total funds at 31 December
19
14		 Unrestricted funds
Restricted
Endowment
Total funds

General
£
Designated
£
funds
£
funds
£
2024
£
4,510,614
-
-
-
4,510,614
597,563
-
704,125
-
1,301,688
86,260
-
67,000
-
153,260
632,675
23,217
10,000
-
665,892
559,539
-
44,499
-
604,038
613,762
81,118
211,587
97,876
1,004,343
97,354
-
-
-
97,354
7,097,767
104,336
1,037,211
97,876
8,337,189
55,350
-
-
-
55,350
7,825,155
226,106
718,516
-
8,769,777
7,880,505
226,106
718,516
-
8,825,127
(782,738)
(121,771)
318,695
97,876
(487,938)
100,625
47,359
118,401
263,042
529,427
(682,113)
(74,412)
437,096
360,918
41,489
1,336,163
(190,177)
(440,588)
(705,398)
-
596,661
-
-
981,216
1,577,877
-
(998)
-
48,161
47,163
-
-
-
-
-
596,661
(998)
-
1,029,377
1,625,040
1,250,711
(265,587)
(3,492)
684,897
1,666,529
22,413,352
2,684,572
6,277,263
65,896,295
97,271,482
23,664,063
2,418,985
6,273,771
66,581,192
98,938,011

60