2020-12-31-accounts

WINCHESTER ANNUAL REPORT AND FINANCIAL STATEMENTS Pi'l(.I::Ll .Jl_ L)£'.L', liil)L-)l- Jl)'jG' WINCHESTER DIOCESAN BOARD OF FINANCE Company number- 142351 Registered charity number- 249276

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 TABLE OF CONTENTS Page No. Foreword Legal Objects Strategic Report: Strategic Aims Activities, Achievements in the year & Future Plans Financial review Strategie risks and uncertainties 8-10 10-12 Structure and Governance 13-15 Trustees, Responsibilities 15-16 Administrative details 17 Independent Auditorfs Report 18-20 Statement of Financial Activitie5 21 Balance Sheet 22 Cash Flow Statement 23 Notes to the Financial Statements 24-52 Page l ol S2

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 FOREWORD This past year has been full of challenges for everyone, separated from our families and friends, constrained in other ways and perhaps struggling with health problem5 or coping with bereavement. Money has also been a worry for many people too, 35 the corona viru5 impacted both local and global economics and resulted in many job losse5. As a Diocese, our finances have also been impacted and the DBF and Senior Staff have faced some difficult decisions about how to continue to support the growth of God's Kingdom in Hampshire and East Dorset during a pandemic. In 5Plte of the thallenges, many individuals and parishes have committed to sustain￿ng their generous giving, which cannot fail to impress and inspire us. Nonetheles5, our Common Mission Fund has been significantly affected, just as the finances in parishes have. Some of the measures introduced in early 2020 could not Sustain u5 indefinitely. The economic impact of the pandemic has extonded well into 2021 and continues, with the result that we must be hopeful but not complacent. Having begun at our 2019 Diocesan Synod Conference to address the question of how misslon and ministry are resourced across the diocese, we were well placed to respond to financial challenges which were intensified but not unanticipated. As a consequence, a raft of proposals for pastoral reorganisation were formulated on the foundations laid by that preparatory work. Although some of these changes are painful, together with the restructuring of the diocesan offices, we can take comfort that they are grounded in our commitment to steward the resources we share, and invest in ministry where it is needed. Having to make cut5 in a climate by this is not unexpected, but we can be confident that our plans are not shaped by decline but orientated around a vision for growth in the church and in the way we serve others. Recognising that the pandemic has had a global impact, we know that the pandemic has hit our friends in the Companion Link Provinces of East Africa, Asia and South America, many of whom are also suffering drought, famine, civil war and violence. We remain committed to sharing God's love and blessings with our neighbour5 both near and far. There is hope ahead, and as we begin to ease out of lockdown restrictions and meet one another again face-to-face, I pray that we will continue to trust that 'the One who began a good work in lusl will carry it to completion until the day of Jesus Christ., (Phil 1.61 Thank you to all who have generously given their time and money to support the mission of the Diocese over this past year. sinc +Tim The Right Rever Dr Timothy Dakin The Blshop of Wlnchester Page 2 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT Forthe year ended 31 December 2020 The Trustees, who are also Directors for the purpose5 of company law, present their annual report, together with the audited financial statement5, for the year ended 31 December 2020. The directors/lru5tees are one and the same and in signing as trustees they are also 518ning the strategic report sections in their capacity as directors. This combined report satisfies the legal requirements for.. a Directors, Report of a charitable company, a Strategic Report under the Companies Act 2006 and a Trustees, Annual Report under the Charities Act 2011 LEGAL OBJECTS The objects of the Diocese of Winchester cover the majority of Hampshire,. a part of eastern Dorset, the unitary authority of Southampton and the eastern parts of the unitary authorities of Bournemouth and Poole. The Bishop of Winchester has delegated his responsibility for the pastoral and spiritual oversight of the Channel Islands to the Rt Revd Trevor Willmott. The Winchester Diocesan Board of Finance I"WDBF"1'5 principal object is to promote, assist and advance the work of the Church of England in the Diocese of Winchester by acting 35 the financial executive of the Winchester Diocesan Synod. The WDBF has the following statutory responsibilities.. the management of Elebe property and investment5 to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976,. the repair of benefice houses as the DSocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972,. the management of investments and the custodian of assets relating to church schoo15 under the Diocesan Board of Education Measure 1991 la new measure came into effect in March 20211,. the custodian of permanent endowment and real property assets relating to trust5 held by Incumbents and Archdeacons and by Parochial Church Councils as Diocesan Authority under the Incumbents and Churchwardens ITru5tsl Measure 1964 and the Parochial Church Councils (Powers) Measure 1956. iv. The strategic priorities of the company are estab115hed by the Diocesan Synod in communication with Deanery Synods, PCCS, and the Bishop of Winchester lin respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the church nationèlly,. taking forward the commitments arising from the Diocesan Conference includin8 the Diocesan Budgel. STRATEGIC AIMS The Diocesan Synod has developed and approved 4 Strategic Priorities that it continues to evolve and implement.. Page 3 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 DecemF)er 2020 Under God, delighting in HIS grate and rooted in the Diocesan Rule of Llfe, we will be a Diocese in which: SP I: We grow authentic disciples, going out as individua15 passionately, confidently and courageously sharing their faith, and comin8 together as creative church communitie5 of prayer and worship that live out Kingdom values. SP 2: We re-imagine the Church intentionally connecting and engaging with our local communities in culturally relevant way5. We will rejoice in the richness of the 'mixed economy, of all ministry and proactively promote vibrant parochial and breath-taking pioneering ministries amongst 'mi5sing' generations, eg children, young people, under 35s. SP 3: We are agents of social transformation using our influence as a Diocese to transform public and personal life. We will demonstrate loving faith at work in local communities and across the globe bringing healing, restoration and reconciliation, eg through education, social enterprise, health care, Spiritual care teams. SP 4: We belong together in Christtr practislng sacrlfici31 living and good stewardship of all that God has entrusted to L15. We will combine radical Benerosity, care and capacity building with a clear focus on directing finance into the mission of Jesus. Sharing and multiplying local good practice, using people, buildings and other resources wisely. we will seek to boldly prune, plant and invest in building for the Kingdom. Due to the nature of our organisation, our objectives and strategic priorities are primarily delivered through our network of parishes, clergy, min15ters and worshipping communities. It is therefore vital that we invest in engaging, supporting, equipping ancl challengin8 them to grow our shared mission as we all seek to Live the Mission of Jesus. The outcomes we look for are represented by the framework of the 3 P's.. Passionate Personal Spirituality Pioneering Faith Communities Prophetic Global Citizenship Through carrying out these priorities and in promoting the whole mission of the church (pastoral, evangelistic, social and ecumenicall the directors are confident Ihaving had regard to Charity Commission guidancel that the Charity delivers public benefit. ACTIVITIES IN THE YEAR The Winchester School of Mission IWSMI continues to see the fruit of implementing the vision of equipping the whole people of God to live the mission of Jesus undergirded by the diocesan Rule of Life. One hundred and eight people completed the Bishop's Commission for Mission IBCMI after the introduction of a further two programmes in Creation Care and as Prayer Champions. The Bishop's Commission for Mission in Worship and Pastoral continue to be popular. After an initial pilot programme was trlalled in 2019, sixteen people started the year-long Bishop's Permission to Preach with the programme being oversubscribed. Thirteen people attended Bishops, Advisory Panel, of whom twelve started training for ordination in September 2020, eight at the Winchester School of Mission alongside one training for Licensed Lay Ministry and two as Licensed Lay Workers. The impact of WSM training was felt as the ordination figures leapt up to seventeen deacons, of whom twelve studied at WSM, and twenty people were ordained priests. Page 4 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT Forthe year ended 31 December 2020 In February 2020 representatives from the Church of the Province of Myanmar visited the diocese. They were hosted by members in the deaneries of Southampton and Odiham and welcomed the opportunity of renewing old relationships and making new contacts with the current deanery leadership. Despite lockdown, the Parish Support Team continued to offer support to parishes. Sixty-four parishes were visited to provide bespoke advice on fundraising, stewardship, parish finances, and governance and strategv. Nearly 77% of parishes and over 4,605 givers are now using the Parish Giving Scheme to help encourage generosity and facilitate frictionless givinE proce55e5. In June, the Stewardship Team launched the first Diocesan wide Stewardship campaign - Generous lune. The campaign was run in partnership with the Diocese of Sheffield providing online resources for teaching and preaching on generoslty, along with daily podcasts and reflections from people across our diocese. Highly positive feedback from those that engaged with the campaign, with a number of parishes reporting SLtbsequent increases in donated giving levels. The daily podcasts were downloaded over 1,175 time5 Wlth over 2,500 people visiting the website during the month. The DAC Team supported over 120 faculty applications and 3 further 180 lesser works requests during 2020. The Houses Team arranged for 1,386 separate repairs and maintenance works to clergy houses. In 2021 the Parish Support Team will continue to support the Diocesan Mission Strategy by providing professional and bespoke support to our 255 parishes, their clergy, volunteers and PCC5. In particular, we will.. relaunch and expand the Church Officers Training Programme,. re-launch the Clerical Registry- plan and implement the diocesan office moves,. seek formal approval for a new housing and investment strategy. The education team worked remotely from March and quickly adapted to all that entailed. The majority of the team were furloughed until October 2020, but throuEhotJt the entire locl<down and relaxation of rules, we continued supporting schools, which remained open for Key Workers, children and Vulnerable thildren. Our schools valued the weekly resources we provided, for use in school, and at home for children I families. These resources included Reflections, Worship ideas and materials and links to useful websites and organisations covering a range of pertinent and useful information on Mental Health, Well Being ènd Safeguarding. In February 2020 two of the Education team and two Headteachers ran a hugely successful conference and in-school training for 90 Headteachers and Clergy in Shyogwe diocese, Rwanda. Supporting the SP4 priority In Winchester we continue to offer training, materials and consultancy for Winchester schools and parishes to support SIAMS, Ofsted and Curriculum expectations. Our provision of training for Governors, Senior Leaders, Headteachers and Subject Leads was adapted and embraced as an online resource. Some of our training provision increased as a resijlt of higher numbers engaging in the remote provision. Support for emergency and planned school building5 work continued, and we have successfully adapted to a new way of prioritising, allocating and reporting government funds that we are deleBated, in line with the national change introduced. Adapting to the impact of restructuring of parishes and the impact this has on the deployment of Clergy as ex-officio governors across the 160 schools in our dioceses was a practical focus. This will be fully mapped and prioritised in 2021, bul significant reactive decisions have laid the foundations. PagL J ol 52

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 With the cancellation of the Year 6 Leavers, days at the Cathedrals, we jointly produced a very well- received video that was shown at the end of term to Year 6 children at school / home. We also created Christmas video with input from a number of our schools, which again was used both in schools for the small number of children attending, and at home with families, or a5 part of online class gatherinES. The Winchester Social Enterprise IWSEI is a separate company supported by a WDBF restricted fund set up in support Df SP3. WSE focussed on scaling up it5 three new pre-school setting5 under the name 'Launchpad Early Years, in the midst of the challenges of the pandemic, with many people working from home, and in some cases, keeping the children they would have sent to pre-school at home as well. In one setting, Boldre, the social distancing requirements necessitated the speedy construction of new facilities and a permanent yurt was put up in keeping with the New Forest national park. This has gone down extremely well with local families and uptake has increased again. In the three settings, there are 12 staff, with over 50 children in setting5 which have a Christian ethos, a commitment to excellence, and a positive link with the local church/church school. This is a developing business that 15 expected to reach self-sustainability by 2023 and is supported partly from DBF restricted funds. The aim is to set up further early years settinBS, preferably including a fvll-time nursery, during 2021. Safeguarding Training transferred to 100% on-line throughout 2020 and it has been possible to remain on top of training requirements for those in leadership roles. Clergy on Freehold and License and with Permission to Officiate, as well as, Lay per50n5 undertaking the Bishop's Commission for Mission. The case panel have further enhanced the process for reviewing current cases. A more diverse panel have added considerably to discussion and formulating action. Our work on Past Cases Review 2 IPCR21 has progressed steadily throughout 2020 and we are on target to meet our deadlines. The Diocese has continued with the first phase of its church growth programme, Winchester Mission Action, which commenced from January 2018. Progress during 2020 has been shaped by the impact of the Covid-19 crisis, with emphasis on growing online worshipping communities and social action in support of Covid-19 relief effort5. Our Resource Church at St Mary's Southampton has collaborated with other local churches to deliver the equivalent of over 200,000 meals to 400 households acros5 the City Centre, involving more than 200 individual volunteers from multiple churches. More recently, St Mary's has been worl(ing in partnership with Southampton City Mission to pilot and launch è community food store, The Marketplace, which is based on the emerging social supermarket model whereby the food bank model of free crisis provision is replaced by one with a small subscription fee and choice from a range of better quality, fresh and ambient food products. The Marketploce is also a community where relationships are built, and a more holistic approach to support can be developed, linking to other ongoing projects such a5 employment SUPPOrt (with Rework) and money management (with Christians Against Poverty). During 2020, our Resource Church at St Mary's Andover was able to successfully re-order the interior of the historical civic church, improving a range of facilities including seating and audio-visual, and creating a light, beautiful and peaceful space which is now much more flexible and suited to contemporary church needs. St Mary's has piloted a new social action hub for the town, known as The Lighthouse. The church is partnering with organisations from acr055 different sectors to develop the work. Current projects include a Job Club and Debt Management Centre Iwith CAPI, a mental health and well being programme acr055 the town Iwith Klntsugi Hopel, and a Life Bus (donated by Stagecoachl for missional use around Andover and the wider area. Page 6 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Our Church Plant at St Nicolas North Stoneham has benefited from completion of the first phase of building refurbishment worl(s, creating more flexible space and improving facilities in the historical church building. The new church community has participated in 2 wide range of community engagement activities as new residents continue to arrive on the adjoining major development area. Having been present and active since the beginning of new house buildin& the church community are engaged with the new YMCA nurserv school and community centre, and with the very first reception cla55 at the newly-opened Stoneham Park Academy School. Our three pilot Benefices of the Future have continued to reshape their ministry and mission in rural areas. Two further pilot benefices were added to the project during 2020, and lessons learned SD far informed the design and delivery of Winchester School OF Mission training for new Benefice Ministry Teams from across the Diocese. Members of our churches in each pilot benefice have taken the opportunity of Covid-19 lockdown to reflect on vocations, leading to encouraging growth in numbeis exploring vocation and undertaking lay leadership training. This has provided a wlder base of lay leadership to support development of Berbefice MinistryTeams. Work to improve digital connectivity across the churches in each Benefice, including development of online worship materials and real-time streaming of services, has borne fruit in 2020 with significant Browth in online congregations during Covid-19 lockdown. After lockdown, streaming has continued as part of hybrid services, combining online and in-church worship. The Avon Valley Churches benefice agreed to a single PCC structure from September 2020 and the new arrangements are working well. The benefice has been active in the community, including 'Messy Church in a Bag" and 'Easter in a Bag" initiatives reaching 600 and 1,000 children, respectively, and attracting widespread news coverage, including BBC. Noyth Hampshire Downs has introduced new Service patterns across the benefice, with focal ministry for each church based on local lay leadership and the introduction of streamed services from the larger churches. This has given the clergy more time for welcoming newcomers to the churches and addressing the needs of each congregation, rather than travellinE between each of the 12 churches on every Sunday. Pastrow Benefice has been developing the Small, rural church at Tangley into a retreat centre whlch can be used by people throughout the Diocese. The benefice continued developing its Benefice Ministry Team and took early steps towards simplified governance. The Student Evangelism project continued to run throughout 2020, with seven Student Ambassadors placed in churches with connections to Further and Higher Education institutions. Additional churches joined the project, particularly from areas oriented more towards Further Education, such as Alton and Totton. In June 2020, the Diocese was awarded £3.19 million by Archbishops, Council for a second phase of Winchester Mission Action. The funding will support projects at St Winfrid's Totton, St Michael's Bournemouth and in Southampton City Centre. The grants will be used to revamp churche5, provide evangelism to younger generations, and to create new congregations. The three projects will emphasise social engagement in areas such as support for children and young families, early intervention to counter homelessness, addiction, social isolation and mental health problem5, and cultural renewal through arts arkd music. Page 7 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 The diocese has in December 2020 received first-stage approval from Archbishops, Council for funding to support development of a Resource Church at St Michael's Basingstoke, as part of a plan to revitalise the four churches of the Ba5ingstoke Team Parish. Second stage approval is anticipated by autumn 2021. Whilst these accounts relate to 2020 the trustees recognise that they are being published soon after the announcement of the retirement of the Bishop of Winchester. We appreciate that this represents a significant moment in the ministry and life of our Diocese and that our account5 cannot easily be read in isolation from this news or indeed the wider public interest in his retirement. In the interim, Mr Alastair Barron will fulfil the role of the chairman of the board of trustees. The Bishop's Council has committed to commission a review of the Eovernance of the diocese. FINANCIAL REVIEW Financial Performance Common Mission Fund, the mutual cost-sharing across the Oiocese to fund mission and ministry is the main incoming resource for the Diocese. We received £9,022,00012019'. £9,388,000) which represented a recovery rate of 89.6%12019'. of 93.4%) against budgel. In line with the recovery rate, actual shortfall on contributions for 2020 stands at £1,050,00012019'. E705,0001. A consequence of the impact of Covid-19 on parish finances. WDBF received a grant of £550,000 from Archbishops, Council Sustainability fund, which has been credited to a new designated fund to help fund the pastoral re-organisation work that will be necessary to address the fallouts from Covid-19. Resources expended across all funds decreased by £1,059,000 to £12,445,00012019'. £13,504,000) as a result of prompt decision making and extensive c05t control management. WDBF budgets aim to break even on its general fund before any capital gains/losses. Covid-19 had a significant impact on finances this year. Common Mission Fund receipts fell significantly as did parochial fees. Against this WDBF made significant savings from a recruitment freeie and reducing expenditure in all areas of activity. The net position on the Eeneral fund after transfers is a deficit of £169,00012019.. £2,564,000) this represents the significant work to reduce costs and to work with parishe5 to help them sustain their finances during this period. Balance sheet position The Directors consider that the balance sheet together with details in note 19 show broadly that the restricted and eridowment 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 £158.2m 12019: £146.9ml it should be noted that included in this total are properties, mostly in use for Clergy, whose value rbet of loans used to buy them amounted to £136.Im12019.' £128.8ml. Much of the remainder of the assets shown in the balance sheet 15 held restricted funds and cannot necessarily he used for the general purposes ofthe WDBF. Free reserves Having considered financial risk, liquidity requirement and the timing of cashflows throughout the year, the Trustees, policy 15 to aim to hold a balance of free reserves18eneral fund less tangible fixed assets net of long-term financinEI on its Eeneral fund equivalent to about 3 months budgeted unrestricted expenditure. At 31 December 2020 the amount required under this policy totalled £2.8m 12019.. £3.Oml. Actual free reserves as at 31 December totalled £4.Om12019= £2.Iml. Whilst the level of reserve5 is currently above the reserves policy parameters and an improvement on the prior year, the Trustees are mindful that this was achieved through the sale of properties, and that there is a decline in Common Mission Fund Income. This is indicative of wider financial challenges and an oversight resilience task force has been created to ensure that the WDBF remains financially resilient and able to deliver its mission. Page 8 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Designated lund5 The Trustees may, with the approval of the Board, designate additional unrestricted reserves to be retained for an agreed purpose where this is 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 adequate justification for their retention. A description of each reserve together with the intended use of the reserve is Set out in note 20. At 31 December 2020 total designated reserves were £3.Om12019'. £2.2ml. This increase is largely due to the creation of the Sustainability Fund. Restflcted and endowment funds As set out within Notes 18 and 19 WDBF holds and administers a large number of restricted and endowment funds. A5 at 31 December 2020 restricted funds totalled £IO.Om 12019.. £9.5ml and endowment funds totalled £112.5m12019.. £104.5ml. Neither are available for the general purposes of the WDBF. Within Notes 18 and 19 "Winchester.. Mission Action" restricted fund and 'Resourcing Ministerial Education IRMEI Training for Ordinands, fund" are recognised. Grant making policy The Memorandum of Association of the WOBF explicitly permits the WDBF to make grants in pursuance of its objects. Details of grants made are shown in note 8. Investment policy The WDBF is empowered by its memorandum of association to invest monies not immediately required for its purposes. In addition, the WDBF acts as Trustee of a number of trust funds, and these must be invested in accordance with the related trusts. The WDBF'S policy is to review regularly the 355ets of each fund for which it 15 responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Note 19 provides details of the a$5et5 of each fund, together with the related purposes, and note 13 summarises the movements in investments during the year. The majority of the WDBF'S investments continue to be held in the CBF Church of England Funds managed by CCLA Investment Management Limited. Once again, CCLA'S performance has been very good through the year. The investments held (valued at midl and their return during the year are set out in the following table: Value at %of 31112120 portfolio 2020 2019 Total Return CCLA £OOO's Yleld Yield Return Investment Fund 18,803 82.89Yo 2.93% 10.2% 3.04% 23.16Yfj Property Fund 1,195 5.27% 4.68% -0.48% 5.46% 2.76% 19,998 Deposlt Fund 2,686 11.84% 22,684 100.00% As a participant in the CBF Church of England Funds managed by CCLA Investment Management Limited and a small number of others, the WDBF adopts the ethical investment policies in those funds. Page 9 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Budget an(1 outlool< for 2021 The Covid-19 pandemic continues to have a significant effect on the activities of the diocese. As the prime purpose of the diocese is to support the m15sion and growth of the church, now, more than ever, is an important time for the diocese to be able to support the clergy and parishes. We are grateful for the response that our laity and clergy have shown over the last few months, dealing with the varied challenges that thi5 pandemic presents. The closure of all churches and diocesan offices, in March 2020, ha5 changed the way that we worship in our pari5he5, support our communities and operate our central diocesan services. Creative and inspiring solutions have arisen in response to this challenge, amid the traumatic and distressing circumstances that many are facing. The diocese is committed to sustainèble growth and to turn around the recent decline in numbers and finances. We plan to invest in SLJPPOrting some church plants and revitalisations, mainly in urban area5 alongside our Benefice of the Future progrèmme which supports rural communities. We recognise that collaboration acros5 benefice5 and the creation of teams, which include clergy and lay leadership are vital. A new programme that supports benefice ministry teams will be piloted in 2021. Diversification and new income streams will help to support investment in growth projects. In 2021 we will be reviewing our property strategy with the plan to create an investment fund. This will provide a new income stream and an opportunity to invest in projects that support local parishes and increase the ministerial provision Financially, challenges continue to be felt at all levels. For the diocese, Common Mission Fund remains vital to the functioning of the diocese, in order to continue to provide clergy stipends, housing and other support. Churches are facing financial challenges across the diocese, and we continue to provide support to them in a variety of ways. While a balanced bud8et was set for 2021. it is now likely that we will incur another deficit in 2021 and we will need to sell some of our properties and call on other lending facilities to finance this on a short-term basi5. This includes the approval for a CIBL Loan from the Board's L¥ank of £lm interest frèe for a year. However, reviewing cash rese￿eS and financial projections, the Trustees are confident that the diocese's finances are suff iciently robust to remain viable, and the Trustees have no doubts over the continued operation of the Diocese. STRATEGIC RISKS AND UNCERTAINTIES The Directors are responsible for the identification, mitigation and management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and m￿tigatIon strategy formed. This is subject to review by the Directors on an annual basis with the responsibility for delivery of the mitigation strategies, identified by it, being delegated to the Chief Executive, and through him other responsible officers. The followinE areas are considered to be the current highest strategic risk areas for the diocese. Page 10 0152

WINCHESTER DIOCESAN 80ARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Risk Safeguarding.. Strategic Overview The Diocese has a Safeguarding Board that Is independently chaired and draws-in senior officers from statutoiy agencies, law and education as well as the Chief Executive of the Diocese and the Dean of the Cathedral. The Board is responsible for developing Safeguarding Strategy and an action plan of improvement. The Board is supported by a Casework Subcommittee and a Training Subcommittee (both independently chaired). The Board promotes best practice and continuously ensures that the Diocese is adopting and developing appropriate policy and practice. A Safeguarding team, led by a highly qualified and experienced Safeguarding Manager, promotes best practice, supports those making disclosures and manages offenders and those under investigation. In 2021 the Diocese will undertake further work to review the records it holds as part of its continuin8 work to review non-current cases. There is an occurrence of child, adult at risk, or domestic abuse by someone working for or on behalf of the Church lin a parish or parish based organisation or at the Diocesan Oflicel It comes to Ilght that there were instances of abuse in the past which were not appropriately dealt with by the clergy/Diocese Risk Financial: strategic Overview The Diocesan Board of Finance IDBFI is supported by a Finance Monitoring Group, made up of DBF and independent members that scrutinise the budgets, major financial transactions and CLJrrent and future spending plans. The DBF also has an Investment Advisory Group which is responsible for meeting with fund managers, managing investment5 to meet the DBF'S growth and income targets, and advising on levels of liquidity. The DBF issues comprehensive Financial Standing Instructions and the Chief Executive issues further Financial Operating Instructions to clearly identify levels of delegation, responsibility and accountability. Appropriate measures are in place to ensure that financial transactions require two signatures and propertv purchase5 and major contracts also require two director signatures in addition to the Chief Executive. The DBF insures against its most significant serious incidents and all insurance policies are reviewed annually. The DBF reviews parish annual reports and accounts, ensures that all drawdowns on investments and property tran5actlDns are viable. Major works to buildings, requirinE faculty, are also assessed for financial prudence. A serious loss of income, investment market crash, unforeseen majoi expense, fraud and theft are all potential serious financial incidents for the Board. A parish enter5 into major expenditure without sufficient resources, experiences fraud, has major unforeseen building or staffing issues requiring SIEnificant expenditure. PaEe 110152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Strategic Overview The Diocese continues to invest in human resource. It a150 plans to develop a new managerg training programme and invest in targeted leadership development for key individuals. Staff support and development are overseen by an HR team led by a highly qualified and experienced Head of HR. Investment and improvement in appointment processes has been a priority for the DBF over the recent years. More use is made of targeted testing and assessment, both prior to and during the early stages of a new employee's appointment. People Significant staff turnover, staff without appropriate qualifications and skills mix for evolving needs of the DBF and wider Diocese. The Diocese fails to make the right appointments to parishes and senior positions within the Diocese. Risk Reputation A serious incident causes adverse publicity and a loss of confidence in the Diocese. Strategic Overview The Diocese cannot prevent all possible serious incidents across all parts of the organisation. If a serious incident should arise the Diocese has a policy of open and transparent communication, supported by a communications team made up of both internal and consultancy staff. The Diocese works closely with statutory agencies and will always report serious incidents to the Charity Commissioners. One serious incident was reported to the Charity Commissioners during 2020. Page 12 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 STRUCTURE AND GOVERNANCE Summary Information about the structure of the Church of England The Church of England is the established Church and HM The Queen is the Supreme Governor. It is organised into two provinces (Canterbury and Yorkl and 42 Dioceses. Each Diocese is a 'See' under the care of a Bishop who 15 charged with the cure of souls of all the people within that geographical area. This charge is shared with priests within benefices and parishe5 which are sub-divisions of the Diocese. The National Church has a General Synod comprised of ex-officio and elected representations from each Diocese and it agrees and lays before Parliament, Measures for the governance of the church'5 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 input as Bishop within the Diotesan Synod. The Diotese is itself is divided into 13 deaneries, each with its own Synod and withSn each parish there is a parochial church council which shares with the parish priest responsibility for the mission of the church in that place, in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod. Whilst each Diocese 15 a separate legal entity, with a clear responsibility for a specific geographical area, being part of the Church of England requires and enables each Diocese to seek support from and application for partnership with neighbouring Dioceses. Organlsational structure The Winchester Diocesan Board of Finance IWDBFI 15 a company limlted by guarantee (No. 1423511 and a registered charity INO. 2492761 governed by its Memorandum and Articles of Association. The company's principal activity is to promote, asslst and advance the work of the Church of England within the Diocese of Winchester. It wa5 established in its present form in 1927 and is successor in title to the Winchester Diocesarb Trustees. Governance and policy of the Diocesan Board of Finance is the responsibility of the Trustees, who are also members of the company and trustees for the purposes of charity law. Following the changes in governance approved in December 2012, the membership of the DBF comprises of.. The Bishop of Winchester lex-officio chairman),. the Chairs of the Synod House of Clergy and the Synod House of Laity, together with six people elected from and by the members of Diocesan Synod every three years. The most recent election5 were held in October 2018. Details of Trustees who served during the year are set out on page 17. The Diocesan Synod, the statutory governing body of the Diocese, is an elected body drawn from across the Diocese with responsibility for setting the vision and strategy of the Diocese, guided by the Bishop's Staff Team. The Synod membership is elected every three years, the last elections having been in September 2018. The Synod elects six of the ten Trustees of the Diocesan Board of Finance. Whilst the WD8F is a separate legal entity, with clear responsibilities under both company and charity law, as well as a governing memorandum and articles of association, by virtue of the National Institutions Measure 2000 the WDBF is subject to the direction of the Synod in all its activities, unless such direction is not in accordance with the Eoverning documents or statutory regulations. Page 13 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 Decision making structure Corporate priorities and the overall financial strategy for the Diocese in its primary object to promote, assist and advance the worl< of the Church of England within the Diocese of Winchester are set by the Diocesan Synod, and the WDBF. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Chief Executive. The company meets once a year, in general meeting, to receive and approve 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 WDBF. The Trustees, meeting within the context of the Bishop's Council & Standing Committee, hold up to seven meetings during the year to formulate and coordinate policies on mlssion, ministry and finance by.. Initiating proposals for action by the Synod and advising it on matters Df policy. Transacting business of the Synod when it is not in session subject to the directions of the Synod and in accordance with Synod Standing Orders. Acting as the Trustees of the WDBF. Planning the business of the Synod, preparlng the agenda for it5 session, and circulating to member5 information about matters for discussion. Advising the Bishop on any matters he may refer to the committee. Initiating consideration of any restructuring of Synod Committees and Departments which may appear necessary and for the establishment of ad hoc review groups, their terms of reference and membership. Carrying out such other functions as the Synod delegates to it. Appointing members to committees and representatives to external bodies, subject to the direction of the Synod. The Trustees are assisted in their work by 2 sub-committees.. Finance Monitoring Group.. monitors management accounts and budget, the use of assets and investment policies and exercises the authority delegated to it by the Tru5tee5 in areas such as grants and loans. It also undertakes the WDBF'S responsibilities under the Parsonages Measure,. the Repair of Benefice Building Measure 1972,. the PCC IPowersl Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 (with respect to parochial property),. the Endowment and Glebe Measure 1976 (with regard to property a55et51- and the Pastoral Measure 2011 Iwith re8ard to redundant churchesl. The diocesan pastoral account is currently in deficit due to timing differences on disposal and the associated continuing cost of maintaining and insuring a Closed Church following the 10ss of tenants. Investment Advisory Group.. provides advice (the sub-committee has no executive authority) to the Finance Monitoring Group and the Chief Executive on WDBF'S investments and funds available for investment. Trustee recruitment, selection and induction Trustees are members of the Bishop's Council & Standing Committee and are selected as set out èbove. They are given induction and provided with trustee training at the outset of the triennium and at other time5 as appropriate. They are also informed before seeking membership and, at all other relevant times, of the role and function of the Committee. All Trustees are required to sign the code of practice and maintain their entry in the record of declarations of interest and loyaltv. Pag@ 14 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEE5 REPORT For the year ended 31 December 2020 Fundraising Code of Practice The Diocese provides support to the parishes with regards to fundraising. Due regard is given to the Fundraising Code of Practice set by the Fundraising Regulator when providing the support to the parishe5. Remuneration of key management personnel Emoluments of higher-paid employees are determined by a remuneration group consisting of the Bishop of Winchester, the Chair of the House of Cler8y and the Chair of the House of Laity. The terms of reference for this group are established by the Bishops Council and include regular appraisa15, remuneration and salary benchmarking and consequent recommendation of changes. Delegation of day to day delivery The Trustees and the sub-committees which assist them in the fulfilment of their responsibilities, rely upon the Chief Executive and his colleagues for the delivery of the day to day activities of the company. The Chief Executive is given specific and general delegated authority to deliver the business of the WDBF in accordance with the policies framed by the Trustees. Funds held as Custodian Trustee The WDBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils IPowersl Measure 1956 and the Incumbents and Churchwardens ITru5t51 Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the WDBF does not control them, and they are segregated from the WDBF'S own assets by means of a separate bank account and accounting system. Further details of financial trust assets, whose market value amounted to £17,793,000 as at 31 December 202012019.. £17,021,000), are available from the WDBF on request, and are 5ummarised in note 25. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by the WDBF'S solicitor, Blake Morgan LLP, Winchester. 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 Tiustees las Directors) to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordante with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. 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 WDBF and of the surplus or deficit of the WDBF for that period. In preparing these financial statement5 the Trustees are required to-. Select suitable accounting policies and apply them consistently. Observe methods and principles in the Charities SORP. Make judgement5 and estimates that are reasonable and prudent. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement5. Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation. The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial p051tion 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 WDBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Page 15 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 The Trustees are responsible for the malntenance and integrity of the corporate and financial information included in the WDBF'S website. Legislation in England and Wales governing the preparation and dissemination of financial statements and other information included in Annual Report5 may differ from legislation in other jurisdictions. In all matters the Trustees have due regard to the Charity Governance Code which covers seven areas: Organisational purpose Leadership Integrity Decision making, risk and control Boards effectiveness Diversity Openness and accountability Statement of Dlsclosure to the Auditors SO far as the Trustees are aware.. al there is no relevant audit information of which the charitable company's auditors are unaware, and bl we have taken all the steps that we OUBht to have taken as Trustees in order to make ourselves aware of any relevant aLJdit information and to establish that the charitable company's auditors are aware of this information. Appointment of Auditors The re-appolntment of Haysmacintyre LLP as auditors to the WDBF will be proposed at the Annual General Meeting. Page 16 0152

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2020 ADMINISTRATIVE DETAILS Trustees No Trustee had any beneficial interest in the company during 2020. The followinE are the Trustees who served at any time during 2020 up to the date of this report: Chairman: Ex Dfficio.. Timothy Dakin BA, MTh, PhD- Bishop of Winchester Andrew Micklefield BEd (Honsl - Chair of the House of Clergy Alison Coulter MA, MSC, MFPH- Chair of the House of Laity Richard Harlow MA Icantabl, Dip. Psychotherapy Charles Stewart MA PGCE Alastair Barron BA (Honsl, MBA, Fsyl Esther Clift Bsc (Hon51, Msc, MCSP lan Newman Mark Ward BA IHonsl Synod House of Clergv: Synod House of L8lty'. Senior staff and advisers Chief Executive and Company Secretary Director of Finance Director of Education Directory of Ministrv Director of Operations Director of Human Resources Director of Strategic Development Andrew R Robinson VR, BA (Honsl Msc, PGD, FCIPD Lisa Streeter FCCA, M8A Jelf Williams MA, DPhil Mark Collinson BSC, MA Colin Harbidge BA (Honsl, MCMI Susan Beckett, FCIPD Mark Lowman BSC, MBA, PhD, FHEA Registered Office- Bankers.. Auditors.. Solicitors.. Investment advisers.. Diocesan Office, Old Alresford Place, Alresford, Hampshire, S024 9DH National Westminster Bank PLC, 105 High Street, Winchester, S023 9AW Haysmacintyre LLP, 10 Queen Street place, London EC4R IAG Blake Morgan, New Kings Court, Tollgate, Chandler's Ford, Hants S053 3LG CCLA Investment Management Limited, 80 Senator House, 85 Queen Victoria Street, London, EC4V 4ET Carter Jonas LLP, 9a Jewry Street, Winchester, S023 8RZ EIG, Beaufort House, srunswick Road, Gloucester, GLI IJZ Richard Turner Associates, 2 West View Lawns, Barton Road, Welford-on-Avon CV37 8EY Glebe Agents: Insurers.. HR Consultants: In approving this Trustees, Report, the Trustees are also approving the Strategic Report included on pages 3- 11 within their capacity as company directors. ON BEHALF OF THE TRUSTEES The Right Reveren Chairman 8, September 2021 Dr Timothy Dakin rew Robin50n Company Secretary 8, September 2021 Pau(.. 17 of .)?.

WINCHESTER DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT For the yearended 31 December 2020 OPINION We have audited the financial statement5 of Winchester Diocesan Board of Finance for the year ended 31 December 2020 which comprise the Statement of Financial Activitie5, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Stondard opplicoble in the UK ond Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of the charitable company'5 net movement in funds, includinE the income and expenditure, for the vear then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS IUKII 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 charity 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 reouirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlnE to going concern In auditing the financial statements, we have concluded thèt the trustees, use of the going concern basis of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. OLJr 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. Page 18of52

WINCHESTER DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT Forthe year ended 31 December 2020 In connection with our audit of the financial statements, our responsibility is to read the other informatio and, in doing so, consider whether the other information is materially inconsistent with the financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit= the information given in the Annual Report (which includes the Strategic report and the directors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared 15 consistent with the financial statements,. and the strategic report and the directors, report included within the Annual Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obiained in the course of the audit, we have not identified material misstatements in the Annual Report Iwhich incorporates the strategic report and the directors, report). We have nothing to report in respect of the following matter5 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company,. or the charitable company financial statements are not in agreement with the accounting records and return5,' or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees for the financlal statements As explained more fully in the trustees, responsibilities statement set otjt on pages IS and 16 the trustees (who are also the directors of the charitable company for the purposes of company lawl 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, discloslng, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable companv or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financlal Statements Our objective5 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 IUKI will always detect a material mi5Statement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tal(en on the basis of these financial statements. Pdge 19 0152

WINCHESTER DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORT For the year ended 31 December 2020 Irregularitles, Including fraud, are instances of non-compliance with law5 and regulations. We design procedures in line with our resporsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of tie charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulationb related to 5(Ifeguarding vulnerable beneficiaries, health and safety, and employment (including taxatlonl, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the firancial Statements such as the Companies Act 2006, the Charities Act 2011 and Church of England Measures. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements lincluding the risk of 04erride of controls), and determined that the principal risks were related to fund accoijnting, including transfers between funds, and revenue recDglltion. Audit procedures performed by the engagement team included.. Inspecting c.orrespondpnc.e with rpgiilator£ and tax aijthnritips,. Discussions with management including consideration of known or sucpected instances of non- compliance with laws and "egulation and fraud,. Evaluating management's -ontro15 designed to prevent and detect irreEulJrities: Identlfying and testing jDurnals, in particular journal entries postej with unusual account combinations, postings by unusual users or with unusual descriptions,. ChJlleiidirits ¢1SSuifis)ti(>1is aiid juddeinei)ts iyiade by management in tlieir critical accounting estimates; Testing transfer5 between funds; and Cut-off testin8 In respect of revenue. A further description of OLsr responsibilities forthe audit of the financial statement¢ is located on the Financial Reporting Council's website at.. www.frc.or uditorsres onsibilities. This destription forms part of our auditorfs report. Use of our report This report Is made solely to the claritable company's members, as a body, in acccirdance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 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 assurne responsibility to anyone other than the charitable compan'i and the charitable company's members, as a body, for our audit work, for this report, or for the opinions vve have formed. Adam Halsey (Senior Statutory Auditorl For and on behalf of Haysmacintyr: LLP, Statutory Auditor 17 September 2021 10 Queen Street Place London EC4R IAG Page 20 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE Statement of Flnancial Activitles For the year ended 31 December 2020 Unrestrlrted funds Restricted Endowment Total Tot?1 General Dcslgnated £'ooo £'ooo Fund5 £'ooo Funds 2020 2019 Note £'ooo É'ooo £'ooo Income and endowments from Donation5 Parishes Archblshops. Councll Other 9,022 58 9,022 1.996 194 9,388 1.298 297 550 1.388 191 9.271 591 827 262 30 10,981 550 62 1,391 42 22 414 Charitable actwlties Other trading activltles InvestmÈnt5 Other 11.212 695 849 714 55 13,525 10,983 852 697 739 19 19 25 117 Totsl 631 1,894 19 13,388 ExpÈndlture on: Fund Raising Costs 110,6381 251 110.6951 Other Expenditure Total 11,7721 111 112,4131 113,3391 11,7721 12.4701 113,5041 Net income/lÈxpendlturel before Investmeni galns Net gains on inve5trnents Net IncomÈlle¥pendlturel Transfers between ftsnds Net lexpendlturelllncome alier translers oiher recognlsed Ealnslllossesl Gèin5 on revaluatlon of fixed tangible a55ets 629 122 18 1,055 1.081 11161 2,602 66 33 348 634 352 15211 11691 662 loo 762 470 652 2.136 2,486 421 470 1,073 2,L36 2.486 2.163 34 81 6.886 9.164 3,935 Remeasuretnent of penslon Scheme provlsion 1361 1391 1,631 Npt movement In lund5 1,958 30,761 32.719 796 2,206 3,002 551 9.461 10,012 7.956 104,524 112,480 Total Fund$ at I January 2020 Total funds at 31 December 2020 11,261 146,952 158,213 8,052 138,900 146,952 18 The net incomelldeficitl of income over expenditure, together with detaSls 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 incomirb8 resources and resources expended derive from continuin8 activities. The notes on pages 24 to 52 form part of the financial statements. Pii ge 210152

WINCHESTER DIOCESAN BOARD OF FINANCE Company Number 142351 BALANCE SHEET For the year ended 31 December 2020 Note Z020 2019 £'ooo £'oDD FIXED ASSETS Tangible assets Investments 12 136,105 21,503 128,854 20,230 149,084 13 157,608 CURRENT ASSETS Debtors 14 1,930 2,658 837 1,811 1,515 26 Cash on deposlt Cash at bank and Sn hand 5,425 3,352 CREDITORS.. amounts falllng due wlthln one ye3r LS 19291 19261 NET CURRENT ASSET5 4,496 2,426 162,104 151,510 CREDITORS.. Amounts falllnÈ due alier more than one year 16 12,8301 13,0051 21 IL.0611 11,5531 NET Assrrs 158,213 146,952 FUNDS Unrestrlrted Income funds: General funds 32,719 3,002 35,721 10,012 112,48D 30,761 2,206 32,967 9,461 104,524 146,952 Deslgftated funds Restrl£ted funds EndowmÈnt funds TOTAL FUNDS 19 158.213 The Notes on pages 24 to 52 form part of these financial statement5. The financial statements were approved by the Board of Trustees and authorised for issue on 8, September 2021 and signed on behalf of the Board by.. The Right Reverend r Tlmothy Dakln Pag@ 22 of52

WINCHESTER DIOCESAN BOARD OF FINANCE CASH FLOW STATEMENT For the year ended 31 December 2020 2020 2019 .000 £,000 13421 £,000 £.000 11,3561 Net cash loutflowll inflow from operatlng attivltles Cash *lows flom Investing actlvltles Dividends, interest and rÈnt from investments 714 739 11.6621 11,0071 3,096 546 Purchase of propÈrty and equipment Purtha5e of investments le ol property and equipment Sale of inve5tm&nts Ii,moi 1,905 Net cash provided by Investlng actlvlile5 2.427 1,712 Cash flows from flnancing actfvltles Repayments of lendlng Rep8yments of borrowing Cash inflows from new borrowing Cash outflows from new lending Net fash used inllprovided by) financlng 215 269 12471 21 1991 47 Chan8e in cash and tash equlvalents 1,954 402 C•5h and cAsh equlvalÈnt5 at l January 1,541 1,139 Cash 4nd cash equlvalents at 31 Decernber 3.495 1,541 Reconclllatlon of net Incom Net Income 2,136 2,486 Adjustments for.. Oepreclatlon charge5 Revaluation L055esllGzinsl on Investments DividÈnds, interest and rent from investment5 IProfitllLoss on ￿le of functlonal a55et5 IProlitl/Los5 on dispos81 of inve5trnent5 Decreaselllncreasel in debtOf5 IOecrea5el/increase in crÈditor5 Net cash (used inl/pro¥lded by operating 3Ctlvltles 11,0811 12,6021 17141 17391 92 12351 14561 118 11,3561 Anal sls of ta5h and c35h e ulvalents Cash at b3nk and in hand Cash on deposit 2.658 837 26 1,515 1.541 3,495 Page 23 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 I. ACCOUNTING POLICIES 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 valuatio method as detailed in el, and fiyed asset investments, which are included at their market value at the balance sheet date. The financial statement5 have been prepared in accordance with the Statemènt of Recommended Practice for Charities (Second Edition, effective l January 20191, the Companies Act 2006 and applicable accounting standards IFRS1021. Afier reviewing the charity's forecasts and projections, as described in the budEet and OLttlook for 2020 on page 10, the Trustees have a reasonable expectation that the charity has adequate resources to meet its liabilities as they fall due for the foreseeable future. The Trustees consider that there are no material uncertainties that may cast doubt on the charity's ability to continue as a going concern and they therefore continue to prepare the financi315tatements on the going concern basis. al Income All income is included in the Statement of Financial Activities ISOFAI when the WDBF is legally entitled to it as income or capital respectively, ultimate receipt is probable and the amount to be recoEnised can be quantified with reasonable accuracy. Common Mission Fund (parish 5harel is recognised as income of the year in respect of which it is received. Rent recelvable is recognised as income in the period with respect to which it relates. iii. Interest and dividends are recognised as income when receivable. iv. Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year. Parochial fees are recognised as income of the year to which they relate. vi. Donations other than grants are recognised when receivable. vii. Gains on disposal of fixed assets for the WDBF'S own use li.e. non-investment assets) are accounted for as other income. Losses on dlsposal of such assets are accounted for as other expenditure. viii. Stipends fund income. The Stipends Fund Capital account is governed by the Diocesan Stipends, Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. The income is fully expended within the year of receipt and the legal restrictions, therefore, are satisfied. It is on this basis that the income and the related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting. bl Expendlture Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity categorv. Costs of raising funds are constrained to COSt5 relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties. Charitable expendlture is analysed between contributlons to the Archbishops, Council, expenditure on resourcing mission and ministry in the parishes of the diocese, expenditure relating to the runnin8 of the diocesan retreat centre, and expenditure on education and Church of England schools in the diocese. iii. Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the WDBF, such 8rants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure. Page 24 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 iv. Support costs consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis. Pension contrlbutlon5. The WDBF'S staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pensions Schemelsee note 211. The pension costs charged as resources expended represent the WDBF'S contribtjtions payable in respect of the accounting period, in accordance with FRS102. Deficit funding for the pension schemes to which WDBF participates is accrued at current value in creditors distinguished between contributions falling due within one year and after rnore than one year. c) Tangible fixed assets and depreciatlon Freehold properties. Depreciation is not provided on buildings as èny provision (annual or cumulativel 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 WDBF 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, disposa15 of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value. The Trustee5 perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying valve is not more than the recoverable amount. Propertie5 subject to value linked loans. Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are stated using the value of the related loan at the balance sheet date. Each year end the respective property and loan are carried at an index linked current valuation basis. iii. Investment properties. Glebe properties held for investment purposes and rented out have been included at their fair value. iv. Parsonage houses, The WDBF has followed the requirements of FRS102, in its accounting treatment for benefice houses Iparsonagesl. FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The WDBF is formally respon51ble for the maintenance and repair of such properties and has some jurisdiction overtheir 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 current market value. Parsonage houses are revalued on a five-year cycle. Other tangible fixed assets. Capital expenditure over £5,000 15 capitalised. Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at price5 ruling at the time of the asset's acquisitionl of other fixed assets over their currently expected useful economic lives at the following initial rates-. Motor vehicles Fixtures and flttings 25% per annum reducing balance basls 15-30% per annum straight line basis P{Igp 25 of .)2

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 dl Other ac¢ounting policies i. Fixed asset investments are included in the balance sheet at market value and the gain or loss taken to the Statement of Financial Activities. ii. Leases. The WDBF has entered only into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure in the year to which it relates. Where rent free periods are given as part of an operating lease, the impact of thi5 rent-free period is reflected in the Statement of Financial Activities over the term of the lease term or first break clause whichever is shorterin time. el Fund balances Fund Balances are split between unrestricted Igeneral and designatedl, restricted and endowment fund5. Unrestricted funds are the WD8F's corporate funds and are freely available for any purpose within the charitable company's objects, at the discretion of the WDBF. There are two types Df unrestricted funds.. General funds which the WDBF intends to use for the general purposes of the WDBF and Designated funds set aside out of unrestricted funds by the WDBF for a purpose specified by the Trustees Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure. Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the WDBF (Parsonage Houses and Schools), there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment. "Special trusts" 135 defined by the Charities Act 20111 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 as charity branches. Trusts where the WDBF 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 statement5. fl 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 estimate5. The following judgement5 (apart from those involving estimatesl have had the most significant effect on amounts recognised in the financial statements.. Basis for non-depreciation of functional resident131 property Valuation of investment properties which have not been formally revalued in the year Assumptions underpinning the clergy and church Workers, pension scheme liabilities. Page 26 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 2. DONATIONS Parlsh Contrlbutlons Unrestricted funds General Deslgnated £'ooo Restr5cted Endowment Funds Funds E'OOO 'ooo Total 2020 £'ooo É'ooo Current Year Apportionment Shortfall In Contrlbutlons 10,072 11.0671 9,OOS 17 10,072 1,0671 9,005 17 RÈceipt5 lor prevlous years 9,022 9,022 Unrestrlcted funds RestrtttÈd Endowment Furbd5 Yotal General Designated Funds É'ooo 2019 £'ooo 'ooo £'ooo £'ooo Current YearApportlonment Shortfall in Contrlbutlon5 10.076 17051 9,371 10,076 7051 9,371 17 Receipts lor prevlous years 17 9,388 9,388 The majority of donations are collected from the parishes of the Diocese through the Common Mission Fund. Current year CMF receipts represent 89.4% of the total apportioned 12019.. 930AI, or, when receipts for previous years are included, 89.5% of the total apportioned12019'. 93.2%1. Archbishop's Councll UnrestrlrtErl funds General Restricted Endowrnent Funds £'(KJo Total Designate £'ooo Funds 2020 £'ooo £'ooo £'ooo 5ustainability Fund grant Strategic Development 8rant Ordinand Trainlng grant 550 550 790 790 58 598 656 58 550 1,388 1,996 Unrestrlcted fund5 General RÈstri¢ted Endowment Total Designated £'ooo Fund5 Fund$ 2019 É'ooo £'ooo e'ooo E'OOO strategic Development grant Ordlnand Training grant 836 836 462 462 1,298 1,298 PaEJQ 27 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 2. DONATIONS Icontinuedj other donations Unre5tricled lund5 RÈ5trlcted Endowment Total General Designated Funds Funds 20ZO £'ooo £'ooo £'ooo £'ooo E'ooo All Churches Trust 132 132 Donations 59 62 Total 191 194 Unrestrlcted funds Restricted Endowment Tot31 General Deslgnated £'ooo Funds Funds 2019 £'ooo £'ooo £'ooo £'ooo All Churches Trust L28 128 Other 163 169 Total 135 163 297 3. CHARITABLE ACTIVITIES Unrestrl£ted funds Generhl Designated £'ooo Restricted Endowment Fund5 Funds Total 2020 É'ooo £'uDo £'ooo £'ooo statutory fees 42J 62 483 Miscellaneous income 170 42 212 S91 62 42 695 Unrestrlcted funds Restrlcted Endowment Total General DeslBnated £'ooo Funds Funds 2019 E'OOO E'OOO £'ooo £'ooo 5tatutoiy fees Other grants recelvable and miscellaneous income 517 517 327 335 844 852 Page 28 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 4. OTHER TRADING ACTIVITIES UnrÈ5trlcted funds General Restrlcted Endowment Funds Funds Total 2020 Deslenated £'ooo 2020 £'ooo 827 £'OOD 'ooo 849 Rental income on fvDctional property Other income 22 827 22 iJnre5trltted ltsnd5 General Designated £'ooo £'ooo 680 Restllcted Endowment Funds Funds Total 2019 2019 £'ooo 680 £,￿0 Rental income on function31 property Other income 17 17 697 697 5. INVESTMENT INCOME Unrestrlcted funds fjeneral OeslEnated E'OOO Resirltterf Endowment Funds Funds Total 2020 Dlvldend5 receivèble IntÈrest recelvable 169 19 412 19 619 25 27 Rent5 receivèble 68 68 262 19 414 19 714 Unrestricted funds General Re5trltted Endowment Funds Funds Total Designated £.(￿0 Z019 £'ooo E'ooo £'ooo É'ooo ODiidend5 recelvable Interest receivable RÈnt5 receivable 96 19 465 io 590 28 31 54 118 IB8 19 522 io 739 Page 290152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 6. OTHER INCOMING RESOURCES Unre5trlcted funds Restrlcted Endowment Funds Funds £'ooo E'ooo Total Gerseral Designated 2020 £'ooo 25 £'ooo £'ooo G3in5 on fixed asset disposals Coronavirus Job Retention Scheme 25 30 30 30 25 55 Total Funds Unrestrlrted ftrnds De51gnate Restrlcted Endowment General Funds Funds 2019 £.￿0 £,000 £,000 £,OOD Sale ol redundant churches 37 88 117 7. FUND RAISING COSTS Unrestrl£ted funds General Deslgnated £,OOD Re5trlcted Funds £,000 Endowment Funds £,000 Total Funds 2020 £,000 Glebe aEenl's fee 27 27 Direct FundralslnB Conference Centre 32 32 Unrestrlcted funds General Designated £.000 Restrlcted Funds £,ooo EndowmeTht Fttnd5 E.000 Total Funds 2019 £,000 £,ODD Glebe agent's fee 38 38 Dlrect Fundralslng 25 25 ConfÈrÈnce Centre io io 73 73 Page 30 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Foy the year ended 31 December 2020 8. CHARITABLE ACTIVITIES EXPENDITURE Un¥estrlcted fund5 Restrlcted Endowment Total General Designated Funds £'ooo Funds 2020 £'ooo E'ooo £'ooo £'ooo utions to Archbisho Training lor minlstry Natitrnal Church Responslbilities Grants and provlsions Misslon Agency Penslon Cost5 RÈtlred clergy housing costs Poollng of ordlnaDd5' malntenance grant cost5 s, Councll 368 306 26 368 306 225 251 132 1601 772 132 1601 997 225 Resourcin Mlnlstr and Mlssion Stipend5 4nd nation31 insurance Penslon contrlbutions Houslne costs Removal. ￿Settlement and other grants RME Tralning for rninistry Other expen5e5 4,099 1,020 1,160 102 134 4.234 1,020 1,175 102 353 569 7,453 2,220 27 1,442 Ll,142 13 353 58 511 6.892 1,237 27 558 983 Support for parish ministry Lay pension defitit provision Governance 1,436 9,592 1.547 Ex iture on Education Support lor church schools and pBrishes Total 274 274 10,638 1,772 12,413 Governance costs of £1,430,000 include5 auditows remuneration of E22,000. P3Be 3101 J2

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 8. CHARITABLE ACTIVITIES EXPENDITURE Itontinuedl Unrp5tricted f￿ndS Restrlcted Endowment Total Funds General DesiEnated £,000 Funds £,000 Fund5 £,000 2019 £,000 E,ooo Contrlbutions to Archblsho Tiaining for Ministry National Church Re5pon5ibilities Mission agency pension costs Retired clergy hou5in8 COSt5 Pooling of ordinands, rnaintenance grant costs s, Councll 313 313 333 333 125 125 748 748 Resovrcln Mln15tr and M15slon Stlpends and national Insurante Pension tontribution5 Housing to£ts Removal. rÈsÈttlÈmÈnt and othÈr ErantS RME Tralning for Mlnlstry Other expenses 4.230 915 2.116 179 4,230 915 2,175 179 339 423 8,261 2,229 20 54 339 361 12 50 7,801 1,713 20 1,584 11,118 12 443 516 Support for parlsh mSnlstry Lay pension deficSt provision Governance 58 70 1,642 12,152 959 enditure on Educatlon Support for church schools and parishes 434 439 12,300 70 964 13,339 Anal sos of Resources Ex Èrbded Includin ort Costs Grant lunding of activltles undèrtaken dlrectly £.OOD Support Costs Total 2020 £,0 £,000 É,000 Ralslng funds Investment management costs Direct Fundraising Conference Centre Charitable Actlvlties Contributlons to Archbishop's Councll Resouiclng rnln15try and mi55ion Education Other 27 27 997 509 997 11,142 274 8,413 274 2,220 8,719 1,506 2,220 12,445 Page 32 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 8. CHARITABLE ACTIVITIES EXPENDITURE Icontinuedl Ana Sls of Resources Ex ended Includln Grants & Su C05ts- 2019 uThdertakÈn Grant funding of actlvities Support Costs 2019 £,000 £,000 £,000 E,000 Ralslng funds Investment management costs Direct Fundraising Conferente Centre Charltable Activities Contributlons to Ar¢hb15hop's Councll Resourclng mlnlsrry and misslon Education other 38 25 io 25 io 748 701 748 12,152 439 7,121 439 4.330 92 92 13,504 7.725 1,449 4.330 Analysls of Grant fundinE 2020 Indlvldua15 £.000 Total £,000 £,000 From unrestrlctÈd funds for natlon81 churth responslbilitie5 Archbishops, Council (note 81 From unrestrlctÈd lund5 PCC5 for church insppction fees PCQ for faculiy fees Churches fogether oreani5ations Clergy for tr31nlng Ordinands, trainingp receiving malntenanre South Central Regional Training Partnershlp Total from unrestritted fund5 Frorn restricted funds fDr various purposes ClÈrgy foi study leave (Penrose fundl Clergy for charitable purposes Wldows and dependants of clergy Deaf clubs RME Ordin3nds In tralnlng 997 997 53 14 32 20 350 350 130 359 19 378 49 143 210 259 469 353 259 618 Total from restri£ted funds lor varlous purposes iii 150 TOTAL 249 1.485 1,994 Pc78e 33 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 CHARITABLE ACTIVITIES EXPENDITURE Icontlnuedl Analysls of Grant fundlng 2019 Total E,000 No. £.000 £.000 From u#re5tricted fund5 for natlonal church Archbi5hops' Council (note 81 From unrestricted funds PCCS lor church inspection fees PCCS lor faculty fee5 Oversea5 Inl55ion agencle5 Clergy Spice Ordinands, trainlngi receivlng malntenance South Central Regional Training Partnershlp Total frorn unrestrl¢ted funds From re51ricted funds for varlous purposes ClerEY for study leave (Penrose fund) Clergyfor charltable purposes Widows and dependants of clergy Deaf clubs RME Ordinands In training Other Institutiortal grants Total Irorn restricted funds lor varlous purposes 748 748 35 ioi 37 17 37 17 25 245 245 21 240 260 60 318 15 78 26 22 215 L24 20 339 20 152 235 147 381 TOTAL 398 496 955 1,447 g. OTHER EXPENDITURE UThrestrlcted funds General De51gnated £,0 £,000 Restrlcted Funds ,ooo EndowmÈmt Funds £.000 Total Funds 2020 £,000 Loss on sale of flxed assets 25 25 25 25 Unrestricted funds General Deslgnated .000 £,000 Restricted Funds £,000 Endowment Funds £,￿0 Total Fund5 2019 Los5 on Sale of flxed assets 91 92 92 Page 34 01 $2

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 10. STAFF & TRUSTEES 2020 2019 £,000 1,799 181 241 16 £,000 1,885 191 218 20 Wages and salaries National insurantÈ contribution5 Pension costs Lay pension defltlt provision change 2,237 2,314 The average number of persons employed durlng the yèaT based on full-time equivalents.. 2020 fte 2019 fte Resourcing mlnlstry: Winchester School of Mlssion strategic Development Administration and Financial manaEemÈnt Safeguarding Property Fundraising Parochial13y staff 25 25 46 47 The average number of persons employed durlng the year: 2020 2019 no. no. Resourclng mlnlstry: Winchester School of Misslon Strategic Development Administration and Financial managemènt Safeguarding Property Fundrai5in8 Parochial lay staff io io 27 27 51 52 The number of ernployees wh05e emoluments (including benefits in kind but excluding pension contributions) amounted lo more than £60,oc￿ were as follow5.. 2020 no. 2019 no. £60,LX>i- £70,000 £90.001- £100.1100 Pension payments of £49,16412019.. £45,000) were made for these employees.

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 10. STAFF & TRUSTEES continued) Remuneration of key management personnel KÈY management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, lor planning, directing and controlling the attivitles of the Diocese. DuTing 2020 they were.. Chlef Executive and Company Secretarv Director of Flnance Director of Education Archdeacon for Mission Development Head of OpErations Director of Resource Development Oirector of Human Re50urce5 Director of Strategic Development Canon Principal & Head of School of Mission Andrew R Roblnson Lisa Streeter160%1 Jeff Williams167%1 Paul Moore Ileft March 20201 Colin Harbidge Anthtsny Smith Ileft March 20201 Susan Beckett Mark Lowman Mark Collinson Rernuneration. pensions and expenses for the 8 employees and I clergy stlpend amounted to £603,60812019'. £620,0001 Trustees, emoluments No Trustee received any remuneration for services as Trustee. The Trustees received travelling and out of pocket expenses. totalling £8612019.. £1,7561 in respect of General Synod duties, duties as Archdeacon or ArealRur31 Dean, and other duties as Trustees. No Trustee wa5 in re￿Ipt of a clergy resettlement grant In 202012019.. Nill. The following table gives details of the Trustees who were in receipt of a stipend andlor housing provided by the WDBF during the year.. Stipend Yes Yes Yes Houslng Yes Yes Yes The Revd A Micklelield The Revd Canon R Harlow The Revd Canon C Stewart 2019 The Revd A Micklefield The Revd Canon R Harlow The Revd Canon C Stewart stipend Yes Yes Yes Houslng Yes Ye5 Yes There were no other related party transactions in the current year or the prior year. The WDBF 15 responsible for funding via the Church Commissioners the stipend5 of licensed stlpendiary clergy in the diocese. other than bishop5 and cathedral staff. The WDBF is also re5pon5ible for the provision of housing for stipendiary elergy in the diocese including the Suffragan Bishops but excluding diocesan bishop and cathedral 5t3ff. The WD8F paid an average of 14012019., 14215tipendlary clergy as office-holders holding parochlal or diocesan ppointments in the dioc@se, and the costs were as follows.. 2020 E,000 3.938 295 1,020 429 2019 £,000 4,215 299 Stipends National Insurance Pension C05t5- Current Year Pension C05t5- Deficit Reduction 919 443 5.682 5,876 Page 36 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 Oecember 2020 11. ANALYSIS OFTRANSFERS BETWEEN FUNDS 2020 Unrestrltted funds Restrlcted Endowment General Designated £,000 E,QOO Funds £,OOD Funds Frorn General fund to 5tlpend fund for reduction in pen51on deflcit From General fund to Cl@rey welfare fund lor the OAP property loan rÈductlon £,OOD 421 iiooi IOD 1521 loo 421 2019 Unrestricted funds General De51Enated £,ooo É,000 Restricted Endijwment Funds Funds E,000 ,000 From Parsonage Endowment incorne to General fund for house cost5 From Council for Social Responsibllity Fund to General fund to support envlronrnent advlser From Schoo15 fund to General fund for s¢hools officers Frorn Loèns fund to General fund to clear balance From Pember income to general fund for clergy pensions From Cl@rgy Welfare Trust to GenÈral fund for ordinands. grants From Maclean fund to general fund for clergy house costs From Fairb£irn Trust fund to General fund for the adviser ta the deaf From the ICSF fund to the General fund for property repaiTS From General fund to Stlpend fund for reduction In pension deFltit Frorn Benelice Houses to Gener31 Fund for transfer of propÈrtie5 21 214 12141 168 li 11681 15 13851 3,380 385 13,3801 3,425 Iiii 14191 12,9951 12. TANGIBLE FIXED ASSETS Freehold Land & Bullding5 £,ODO Olfice Equlpment £.000 2020 Total £,o(K) CLtrrent Year Valuation as at.. l Janu3ry 2020 Addltions Disposals Revaluatlon 310ecember 2020 128,846 524 129.370 11,9051 9,164 136,105 11.9051 9,164 136,629 524 Depreciatlon At l January 2020 Disposals Charge lor the yÈar At 31 December 2020 516 516 524 524 Net Bix)k V31ue At 31 Deiember 2020 136.105 136,105 At 31 Oetember 2019 128,846 128,854 PagL 37 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS For the yearended 31 December 2020 All of the properties in the balance sheet are freehold and are vested in the WDBF. except for benelice houses which are vested in the incumbent. 13. FIXED ASSET INVESTMENTS As at 1st Net As at 31st Januarv 2020 fjalns I ILDssÈsl E.000 December Current Year Additions £,000 Disposals 2020 £,000 £.wo £,000 Unre5trirted funds Unllsted Investments 1,526 1,000 99 2.625 Restricted Fund5 Unlisted Investments 8,075 348 8.423 Endowment Funds InvestMÈnt property 1.013 1,013 Unlisted Investments 9,616 8081 634 9,442 10,629 18081 634 10,455 Total 20,230 1,000 18081 1.081 21.503 14. DEBTORS 202 £,000 2019 E,000 Dije wlthin one yeor Current year Cotnrnon Mi55i0n Fund Iparish share) Loans to parishe5 Loan5 to others 98 59 103 141 46 71 other debtor5 and prepayments 652 492 899 763 Due Gftermore thon oneyear Loans to ￿rIsheS Other Loans 632 682 399 366 1,031 1,048 Total debtor5 1,930 1,811 P¢ige 38 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS For the year ended 31 December 2020 15. CREDITORS: amounts falling due within one year 2020 £,000 2019 .000 Loèn repayment5 34 106 Deferred income Other taxes and social securlty 20 Creditor relatingto salÈ proceeds of c105ed School 400 400 Other credltor5 and accruals 349 245 Pension scheme liabilitles.. CEFPS for Clergy 53 95 Church Workers DBS Total ¢reditors.' amounts falling due wlthln one ar 65 78 929 926 16. CREDITORS: amounts falling due after more than one year 2020 E,000 2019 £,000 Lo4n repayment In5taltnents due after more than one year Church Commissioners v#lue-linked loans 85 85 Church Commlssloners other loans iii 112 Other loans 2,634 2,808 Pen51on scheme liobllities.. CEFPS for Clergy 479 855 Church Wcrker5 DBS Total creditors.. amounts falling due after more Ihan one year 582 698 2,891 4,$58 The maturity of the above103ns may bÈ aDaly5ed s follows.. Between one and two years 34 37 BÈtween two and five years 134 107 In h've years and more 2,662 2.861 2,83 3,005 Pit pe 39 01 J2

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 17. ANALYSIS OF CHANGES IN DEBT As at 1st As at 315t January 2020 December Cashllows £,000 Other E,000 2020 E,000 C35h and tash equivalents Loans falllng due within one year Loans f3lling due after more than one year 1,541 11061 12.8081 11.3731 1.954 72 3,495 1341 12,6341 827 174 TOTAL 2,200 As at 1st As at 315t January 2019 December Cashllows Other .000 2019 £,000 £,OOD sh and cash equivalent5 sh equivalents Overdrafr facility repayable on demand Lo3ns falling due within on@ year Loèns falling LSve after more than one year TOTAI 1,139 402 1.541 11081 12,8881 11,8571 11061 12.8081 11,3721 82 486 Page 40 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS For the year ended 31 December 2020 18. SUMMARY OF FUND MOVEMENTS- CURRENT YEAR Gains and losses £'ooo 31 December 2020 'ooo l January 2020 £'ooo Income £'ooo ExpenditurÈ £'(#Jo T¥ansfers E'ooo UNRESTRICTED FUNDS General 30,761 10,981 110,6951 1521 2,193 32,719 DESIGNATED FUNDS Pirish mlsslon development Maclean OAP Property 8ulldin8 New Church Planned maintenance sinklng fund Sustainability Fund 107 377 1.450 372 iiooi 106 416 1,550 491 11061 545 3,002 15 24 loo 66 44 550 632 loo 67 RESTRICTED FUNDS Pastoral fund Pzr50nages endowment ￿nCorne Clergy hou5e5 fund Major Ball settlÈment income Penr05e income fund Clergy welfaTe income fund Chalke Bequest Income Church schools fund QueÈn Victoria clerey fund Pernber income fund Widows and depend3nts fund Thorrold Ilbrary fund ICSF grant fund Council for Social Responsibilty F31rbarn trust 12641 12671 2,918 19 47 493 21 2,896 70 130 3,101 12 160 55 666 22 3,122 1151 25 126 103 77 829 29 52 904 24 362 24 li 26 75 21 399 939 33 12241 823 317 293 li Christopher library RME Training for Mlsslon Wlnchester Mission ActSon L63 598 13531 1.1181 1,7721 408 363 10,012 648 9.461 832 1.893 430 ENDOWMEvfFUNDS Expendable Benetice houses Permanent Stipefid5 fund capital Parsona8e5 endowment capital Major Ball settlement tapital Penrose capital ClÈrgy welfare capitBI Chalke bequest capit31 Widows and dependants capital Thorrold library capital Pember capital Christopher Library Chute endowment 76,947 5,881 82,828 18,767 730 164 319 6.159 56 183 202 753 421 1.133 50 li 22 321 20,320 780 175 341 6,480 60 196 216 823 13 14 52 18 240 L04,524 17 7,517 257 112,480 19 421 Total Ivnds 146.952 13,525 112.4701 10,20Y 158,213 Paye410152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 December 2020 18. SUMMARY OF FUND MOVEMENTS- PREVIOUS YEAR GÈlns and 105ses £,000 Balances at i January 2019 £,ooo In£omln8 resources Balances at 31 De￿mber 2019 £,000 Expendlture £,OOD Transfers £,000 £,000 UNRESTRICTED FUNDS General 27,167 11.289 112,3741 3,425 1,254 30,761 Parish mlsslon and development Maclean OAP Property Bulldlng New Church Planned rnaintenance sinklnÉ fund 107 316 1,450 366 142 2,197 107 377 1,450 372 iiooi 2,206 Is 57 22 1581 1701 li 79 RESTRICTED FUNDS Pastoral fund Parsonage5 endowment income Clergy houses fund Major Ball settlement income Penroso Income fund Clerey welf3rÈ Income fund Chalke 8eque5t incorne Diocesan loan5 fund Church schools fund Queen Victoria clergy fund Pember income fund Wldows and dependants fund Thorrold library fund ICSF grant fund Council for Social Responsibilitv Falrbarn trust 12101 12641 22 68 2.791 18 43 441 19 78 2.918 19 47 493 21 12 161 11671 66 2.651 138 12141 326 2,896 45 690 18 308 871 248 26 28 77 829 24 362 939 293 118 li 42 58 171 47 11451 iioi Chrlstopher Ilbrary RME Training for Mlssion Winchester Mission Action 40 462 997 1,991 13391 13541 19641 163 648 9,461 7,984 14191 869 ENDOWMENTFUNDS Expendable 8enelice houses Permanent stipends fund capltal Parsonages Èndowment capitsl 78,088 13.3801 2,230 76,947 15,805 615 88 1961 385 2,585 115 18,767 730 Major Ball settlement Capital Penrose capltal Clergy wellare capltal Chalke bequest capital Widows and dependants capital Thorrold library capital Pember capitèl Chrlstopher Library Chute endowment 138 269 5,425 47 154 170 634 26 50 734 164 319 6,159 56 183 202 753 29 32 119 202 IOL,552 38 5,966 240 104,524 97 1961 12,995 Total fund5 138,900 13,388 113,5041 8,168 146.9S2 Page420152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 December 2020 19. SUMMARY OFASSETS BY FUND-CURRENTYEAR Flxed assÈt5 Tangible Investment5 £.000 Current Assets ,000 Nel A55ets Credltors £,000 £,000 £,000 Unrestrl£ted funds- general 32,548 1,752 1,966 3.547 32.719 UnrÈstrl£tÈd dÈsign3ted Parlsh m155ion and development Maclean OAP Property Buildin8 New Church Planned maintenance sinking fund Sustainability 106 106 416 1,550 492 11061 545 424 2,750 801 11.2001 14581 11061 545 148 3,551 572 3,002 Restrittèd PJ5toral fund Porson3ges endowment Income Clergy houses fund Malor 6311 settlÈment income Penr95e incorne fund Clergy welfare income fund Ch3lke Bequest income Church schools fund Queen vittorSa Clergy fund PÈmber incorne fund Widow5 and dependants fund Thorrold library fund ICSF grant fund Council for Soclal Responsibility Falrbam trust Tale Tellers Christopher Ilbrèry RME Training for Mission Winchester Mission Action 12671 1.376 808 1,210 12931 3,101 41 609 16 56 22 141 57 665 22 3,124 3,383 14001 68 li 80 903 24 800 103 24 402 395 1.178 322 13071 1481 823 317 408 363 1,761 363 10,012 1,376 7,615 17411 Endowment funds Expendable endowmÈnt Benefice houses Perrnanent Stipend5 fund czpital Par50nages endowment capital 83,826 171 11,1701 82.828 14,803 3,172 2,876 15331 20,318 780 Malor 8311 settlement c4pltal PenrosÈ capital Clergy welfare capital Ch21ke bequest capital Wldows and depen(fant5 capital Thorrold library capltal Pember capiral Christopher Librarv Chute endowment 174 342 5.382 60 197 217 804 175 342 6,480 1,098 196 217 823 19 257 257 98,629 11,563 2,820 15331 112.479 Toial fund5 136.105 21,503 5,425 14,8211 158,213 PaEe430152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIALSTATEMENTS For the year ended 31 December 2020 19. SUMMARY OF ASSETS BY FUND- PREVIOUS YEAR Flxed assets Tangible £,000 31,647 C¥rrent Asset5 É.000 1,946 Net A55et5 £,OOD 30.761 Investments CreditOT5 £.000 13,9231 £,000 1,091 Unrestrlcted funds- general Unre5tritted- designated Parlsh mlsslon & develDpment Maclean 107 107 377 398 iiooi 138 OAP property Building New Church Planned maintenance sinking fund 2,750 767 11.2001 15331 liooi 11,7471 1,450 372 I1(￿> 2.206 3.517 436 RestrlctÈd Pastoral fund Pasonages Endowment Income fund Clergy houses fund Major B3115ettlement income Penr05e Incorne fund ClÈrgy Welfare income fund Chalke Bequest intomÈ Church Schools fund P@mber income fund Queen Victoria clergy fund Widows and depend3nts fund Thorrold library fund ICSF grant fund 12651 12641 1.945 758 414 17 11991 2,918 19 43 47 585 493 18 21 2,896 77 3,282 69 14 14001 iioi 829 749 80 23 1171 24 379 1.094 299 362 939 293 Fairbarn Trust Tale Tellers Christopher Library RME Training for Mi5510 Winchester Mlsslon Action 163 163 648 9,461 648 8,074 1,945 41 15991 Expendable endowment Benefice houses Permanent endowment Stlpend5 fund capitsl Parsonage5 endowrnent capital Major 8all sÈttletnent capit31 Penrose capltal Clerey Welfare capita1 Chalke bequest capital Widows and dependant5 capital Thorrold Ilbrary cèpltal Pember capltal Christopher Library Chute endowrpent 77.938 180 11,1591 76.947 13.807 3,034 730 2,876 19501 18.767 730 164 319 163 320 4,759 56 1,4CQ 6.159 56 183 202 753 203 753 240 10,629 240 91,745 3,112 19621 104,524 Total funds 128.854 20,230 3,352 15,4841 146,952

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS For the year ended 31 December 2020 20. DESCRIPTION OF FUNDS General fund The general fund is the WDBF'S unrestrleted undesignated fund available for any of the WDBF'S purposes without restrictitsn. ThÈ Maclean Fund origillated with an unrestricted bequest in 1948 by the late Sir Alexander Maclean. The WDBF h35 designated thi5 fund to assist with expenditure on clergy housè5 which could not be met from any other fund. The diocesan pastoral account was set up under the provislons of ihe Pastoral Measure 1983. The restricted purpose5 for which the account may be used are.. to defray costs incurred for the purposes of the MeaSL5re or any scheme or order made under the Measure except for salaries of regular diocesan employee5 to make loan5 or grants for the provision, restoration, improvement or repair of churche5 and parsonage houses in the diocese othei purposes of the diocese or any benefice or parish in the diocese to make Erants or loans to any other diocese to transfèr funds to the diocesan stipend5 fund income or capital account5. This restricted fund, formerly known as the Clergy Retirement Houses Fund. repre5ent5 the unexpended balance of a spetial appeal for funds made in the earlv 1980s forthe provlsion of retirement housing for clergy. The fund is also used to make bridging loans to clergy approaching retirement. A Charity Commissioners Scheme has widened the purposes tsf this fund to Include housing provision for clergy widow5 nd deserted clergy spouses. Thls restritted fund represents the unexpended accumulatèd income of a settlèment for the benefit of the parishes of Brown Candover and Chilton Candover. This fund represents the unexpended accumulated income of a legacy for tl)e benefit of clergy, who in the opinion of the WOBF are most in need of grants. In recent year5 the WDBF has applied the ineome for grants to clergy for extended study leave. The Clergy Welfare Fund is vested in the WDBF as trustee. The capital of the trust is Shown as a permanent endowment, and accumulations of income as a restricted fund. The purposes for whlch the trustee may apply the income are as follows.. for the benefit of clergy in the Diocese of Willchester. at the discretion Of the Bishop,. to assist ordination candidates.. to a5515t with the hlgher education of children of the clergy in the Diocese. Maclean fund Pastoral fund Clergy houses fund Major Ball settlement Penrose legacy income Clergy welfare fund Church schoo15 fund The church schools fund represents unexpended accumulations of sale proceeds of redundant Church of Eng13nd School properties. Its L)se Is restricted by law to capital and rllaintenance work to Church of EnEland schools in the diocese and education generally at Churth of England Schools in the diocese. The WD8F 15 trustee of these funds, which are managed on a day to day basis by and in consultation with the Board of Education. Pember income fund The annual income of the PembÈr Fund is restricted by a Charity Commissioners, Scheme to the payment of Winchester Oiocesan clergy pen5ion5. Where the income In any year is not required for this purpose, it may be used for providing accommodation for these clergy and their dependants, and for makin8 grant5 to widows of such tlergy and theii dependants. These funds have been left to, or settled with, the WDBF Specifically for the benefit of clergy widows and dependants. The purpose of this fvnd 15 to provide a theologital library for the clergy of the Diocese. The Thorrold and Lyttellon Library ha5 been loaned to the Univer51ty of Winchester to secure it5 future accessibility and development. Clergy wldows and dependants Thorrold Library fund Pir Ee 15 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS For the year ended 31 December 2020 Fairbairn trust The Fairbairn Trust, of which the WDBF Is trustee, was 3 bequest of the late Sir Arthur Fairbairn for the Church of Englav)d's mission to deaf and hard-of-hearing people in the Diocese. Grants are awarded to parishe5 and local deaf clubs. Diocesan Council for Social Responslbilitv The Winchester Diocesan Council for Soclal Responslbility is a registered charity of which the WDBF is trustee, and which is linked to the WOBF for reporting purposes by a uniting direction of the Charity Commission dated 31 May 2005. The purpose of Ihe charity is 'the advancement of the Christian religion within the Diocese of Winchester by promoting Christian engagement with and concern for people'5 needs in the whole of society, and to reflect upon Social issues in the Ilght of the 'Gospel'. This fund ar05e from a distribution to the WDBF from the former Incorporated Clergy Sustentation Fund. Capital and income may be Used in aid of the sustentation of the clergy in the Diocese. This restricted fund consist5 of income generated by the a5SOClated endowment the income is entirely transferred annLJally to the gener31 fund where it is appSied for it5 specified purpose of benefice house outgoinES. The dioce53n stlpends capital fund has been created from the diocesan stlpends fund capital account assets held on behalf tsf the diocese by the Church Commissioners under the Endowment5 and Glebe Measure 1976 to providè income for cleiEv stipends. It represent5 the actumulated sale proceeds of glebe propertv, 5alÈ proceeds ol benèfice houses and surplus benelice endowments following pastoral reorganisation. Capital funds may be ysed for the purchase, improvement and maintenance of glebe property and benefice houses. The funds may be invested in the CBF Church of England Property, Investment or Fixed Interest Securitie5 Funds, or 51mply held on deposit. The benefice property fund consist5 of Te50urces restricted to provision of b@nefice houses in the diocese. They are represented by the benefice houses or by salè proceeds of lormei benelice houses held on suspense by the Church Commissioners. Although benefice houses are vested in the incumbents for thE time being of the benelices concerned. the DBF is obliged to maintain them, to ensure that there are sufficient benefice houses forthe pastoral structurÈ of ihe diocese,. in Hddition. where a benefice house 15 no longer required then it IS Usually transferred into rhe unresiricted corporate ownership of the WDBF. Bequest from Miss Winifred Joan Chalk to be used for the benefit of Indvstrial Mission. ICSF grant for tlergy house5 Benefice house endowment Diocesan stipends fund capltal Benefice property tund Chalk Bequest Chute Endowment The income from the Chute Legacy Endowment, a fund originally created by the WDBF from a number of restricted gifts is for the purpose of being a repair and replacement fund for the Retreat Centre. Gift from OAP Trustees in 2009- Income is used to support the salary of resources ssistant in the Resources Centre. Christopher Library Tale Tellers Gilt from OAP Trustees in 2009 - Income is used to support the salayy of resources ass1stant in the ReSour￿S Centre. Sustainability Fund To aid transltitsn Page 46 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 21. PENSIONS The DSF participates in two penslon schemes administered bythe Church ol England Pensions Board, which hold% the assets of the schemes separately from those of the DBF and the other partltipating employers. One of these is the Church of England Funded Penslons Scheme for stipendiary clergy. The other is the Church Workers Pension Fund. The Church Workers Pension Fund has a section known a5 the Defined Benefits Scheme, a deferred annuity settion known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. These schemes are multl-employer 135t man standing defined benefit pension schemes for which the DBF is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risk5 associated with the current and former employees of other entitie5 particlpating in the scheme. For multi-employer scherres where this is the case. paragraph 28.11 of FRS102 requlres the DBF to account for pension c05t5 On the basi5 of contributions actuallv payable to the stherre in the year and. where contributlOn5 are affected by a surplu5 or defitit in the scheme, to disclose Information about the surplus or deficit and the implications of the surplus or deficlt for the D8F. A valuation of each scheme is carried out once every three year5. Church of England Funded Penslon Scheme ICEFPSI The membership figures that we hold ès at December 2019 and December 2020 for Winchester DBF are Set out in the table below. These are used as part of the Board's calculation of the deficit contributions in payment at each year-end, which in turn feed into the FRS102 calculation5, so ère provided here for reference. December 2020 December 2C>19 Number of Members at this Responsible Bodv 146 155 Winchester DBF participates in the Church of England Funded Pensions Schème 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 ResponsSble Body in the scheme pay5 contributions at a common contribution rate applied to pensionable stipends. The scherne is considered to be a rnultl-employer scheme as described in Section 28 of FRS 102. This means 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. A valuation of the Scheme 15 carrled out once evory three years. The most recent Scheme valuation completed was carried out at as 31 December 2018. The 2018 valuation revealed a deficit of £50m, based oll asset5 Of £1.818m and a funding target of £1,868m. assessed using the followrn8 assumption An average discount rate of 3.2% p.a., RPI inflation of 3.4% p.a. land pension Increases consistent with thisl.. Increase In pensionable stipends of 3.4% p.a., Mortality in accordance with 95% of the 53NA_VL table5, Wlth allowance for improvemont5 in mortality rates in line with the CM12018 extended model with a long term annual rate of improvement of 1.5%, a "smoothing parameterf, of 7 and an initial addition to mortality impiovements of 0.5Yo Pa. Following the 31 December 2018 valuation, a recovery plan wa5 Put in place until 31 December 2022 and the deficit recovery contrlbutions las a percentage ol pensionable stipends) are as set out in the table below. Pcige 47 of 52

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 % of pensionable stipends Januaiy 2018 to December 2020 11.9% January 2021 to December 2022 7.1% Deficit repair contributions As at 31 December 2018 the deficit recovery contributions under the recovery plan In force at that time were 11.9% of pensionable stipends until December 2025. As at 31 December 2019 and 31 Dec@mber 2020 the deficit Tecovery contributions under the recovery plan in force were as set out in the above table. For senior office holders, pensionable stipend5 are adjusted in the calculations by a multiple. as set out in the Scheme's rules. Section 28.IIA of FRS 102 requires agrÈÈd d*fiClt retoveiy payments to be recoEnlsed as a liability, The movement in the balance sheet liability over 2019 and over 2020 is set out in the table below. 2020 2019 Balance sheet liability at l January 950.000 2,966,000 Deficit contribution paid Interest C05t Ireco8ni5ed in SOFAI Remaining chanEe to the bal3nte sheet liability. Irecognised In SOFA) -429,000 8,000 3,000 -443.000 58,000 -1,631,000 Balance sheet liability at 31 December 532,000 950,000 Comprises change in agreed deficit recovery plan, and change in discount rate and assumptions between year-ends. This liability represent5 the present value ol the deficit tontributions agreed as at the accounting date and has been valued using the following assumptions set by reference to ih@ duration of the deficit ¥ecovery p3yment5'. December 2020 December 2019 Dècember 2018 Discount rate 0.2% 3.1% 1.6% l.l% pa 2.8% pa 1.3% pa 2.1% pa 3.l%pa 1.6% pa Increase to total pensionable payroll The legal structure of the schemè 15 such that if another Responsible Body fails, Winchester DBF could become responsible for paying a share of that Responsible Body's pension liabilities. Winchester D8F participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme 15 administered by the Church of England Pensions Board, which hold5 the assets of the scheme separately from those of the Employer and the other participating employers. The Church Workers Pension Fund ha5 a section known as the Defined Benefits Scherne, a deferred annuity section known as Pension Builder Classic and a cash balance settion known 35 Pension Builder 2014.

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 Defined Beneflts Scheme The Defined Benefits Scheme I"DBS'I section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries. For funding purposes, DBS is divided intcl 5ub-pools in respect ol each partlcipating 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. includiNE those relating to rnortality and p05t-retirernent investment returns. The division of the QIBS into 5ub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as H single trust fund out of whlch all the benefits are to be provided. From time to time, a notional premium is transferred from employer5, sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool. The scheme is a rnulti-employer Scheme as described in 5ectlon 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific ernployers. slnte each employer, through the Life Risk Section, is exposed to èctuarial risks associated with the Current and former employee5 of other entities participatine in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. If, following an actuarlal valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made frorn the Life Risk Pool to the employers, 5ub-pools, or vice versa. The amounts to be transferred land their allocation between the sub-poolsl will be settled by the Church of England Pensions Board on the advice of the Actuarv. A valuatlon of DBS Ss carried out once every three years. The most recently linalised was carried out 65 at 31 December 2016. In this valuation, the Life Risk Section w35 Shown to be in deficit by £2.6m and £2.6m was notionally transferred from the employers, sub-pools to the Life Risk Section. Thi5 increased the Employer contributions that would otherwise have been payable. The overall deficit In DBS was £26.2m. A valuation 35 at 31 Oecember 2019 wès under way as at 31 December 2020. The contributions agreed at that valuation will be reflected in the figures disclosed In the 2021 accounts. Following the valuation. the Employer has entered into an agreement with the Church Workers Pension Fund to pay expenses of E7.700 per year. In addition deficit payrnent5 of É153.956 per year have been agreed for 7.00 years from I April 2018 in respect of the shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer's financial staternents. Sectlon 28.IIA of FRS 102 requlre5 3greed deficit recovery payment5 to be recognised as a liability. The movement in the provision 15 set out below.. 2020 2019 Balance sheet liability at I January 776,000 893,000 Deficit contribution paid Interest t05t Irecognised in SOFA) Remaining change to the balance sheet liabllity'lrecognised In SOFA) -154,OOD 9,000 16.000 -154.000 17,000 20.000 8alance sheet Ilabllity at 31 December 647.000 776,000 * Comprises change in agreed deficit recovery plan and change in discount rate betwÈ8n year-ends.

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 This liability repie5ent5 the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments.. December 2020 December 2019 December 2018 D15count rate 0.40% 1.30% 2.10% The legal structure of the Scheme is such that if another ernployer fails, the employer could become responsible ftrr paying a share of that employels pension liabilitie5. Teachers, pension stheme ITPSI The WDBF made contributions to the TPS on behalf of 2 employee5 who had previously been teachers. The TPS is B statutory, conlributory. defined benefit scheme, governed by the Teacher5, Pensions Regulations120101 and. from I April 2014, by the TeacheTS' Pension Scheme Regulations 2014. Membership is autotnatic lor full-time teachers and from I january 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out. The TPS 15 an unfunded scheme and members contribute on a 'pay as you go, basis, these contributions along with those made by ernployers are credited to the Exchequer. Retirement and other pension benefit5 are paid by public funds provided by Parliament. Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions Ivaluatior)s and Employer Cost Capl Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarlal scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2017 and full details are available on the Government website at.. htt www. ov.uk overnment collections teachers- en5ion-scheme. 22. OPERATING LEASES Total amounts payable under non-cancellable operating leases are as follows: 2020 2019 £,000 £,000 Land and buildlngs Within one year of the balance sheet date 16 In the second to fifth years inclusive of the balance sheet date 13 21 Z9 21 Other operating leases.. Within one year of the ba13ncè sheet date In the second to fifth years inclusive of the balance sheet date 13 14 13 Page So 0152

WINCHESTER DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 23. FUNDS HELD AS CUSTODIAN TRUSTEE The WDBF acts a5 Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Counci15 Ipowersl Measure 1956 and the Incumbents and Churchwardens ITrust51 Measure 1964 where the managing trustees are parochial church councils and others. Asset5 held in this way are not consolidated into these financial Statements as the WOBF does not control them. The financial assets held in this way may be summarised as follows: 2020 2019 £,000 15,288 590 £.000 14,467 647 CBF Church of Eneland Investment Fund income share5 CBF Church of England Fixed Interest Securities Fund shares CBF Church of England Property Fund shares COIF income and accumulation shares Other common investment fund holdings Direct holdings in UK equities Other flxed interest stocks CBF Church of England Deposit Fund Sundry debtors Cash at bank Sundry creditor5 Total assets held as Custodian Trustee 243 271 31 39 288 298 104 ioi 1,233 1,206 15 1171 17,021 17.793 24. POST BALANCE SHEET EVENT The. Channel Islands Measure 2020 was approved by the General Synod of the Church of En8land at It5 February 2020 group of sessions and received Royal Assent in July 2020. At the end of 2020 it had not yet entered into force because further legislation was required. When it doe5, Its effect will be to transfer legal responsibility for the deanerie5 01 jersey and Guernsey to the Diocese of Salisbury, as recommended by the Report of the Archbishop's Commission. published in October 2019. Responsibility for these deaneries was delegated to the Rt Revd Trevor Willmott. as described in the Trustees, Report. with effect from l January 2015 $0 there will be no direct financial impact on the DBF when thls Measure tomes into legal effect. Pago51 of52