OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-12-31-accounts

ossesls

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2023

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 2023

----- Start of picture text -----
TABLE OF CONTENTS PAGE NUMBER
Foreword 3
Legal Objects 4
Strategic Report:
Strategic Aims 5
Activities, Achievements in the year & Future Plans 6-7
Financial review 8-11
Strategic risks and uncertainties 12-13
Structure and Governance 14-16
Trustees’ Responsibilities 17
Administrative details 18-19
Independent Auditor’s Report 20-22
Statement of Financial Activities 23
Balance Sheet 24
Cash Flow Statement 25
Notes to the Financial Statements 26-53
----- End of picture text -----

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

FOREWORD

To conclude last year’s set of accounts, I asked us all to pray, as St Paul did, to God who is “able to do immeasurably more than all we even ask or imagine, according to his power that is at work within us” for the bright and hopeful future of the Diocese of Winchester. This year I can confidently say that God has been faithful to us as a diocesan family.

As a Board, we have endeavoured to develop an intentional covenantal-style relationship with our parishes, clergy, and diocesan synod so that we can truly work within an environment where voices are heard, our communications are transparent and fair, enabling robust review and debate, but most importantly allowing the Holy Spirit to minister to us.

The executive team led by Colin Harbidge have worked extremely hard, often to very tight timetables, to this end. The in-depth budget consultation undertaken earlier in the year was a strong indication of the style with which we wish to work collaboratively and openly in the future. In addition, we began several critical reviews in 2023: looking at how we manage our property, in particular clergy housing, also looking at the Common Mission Fund, and finally into the work School of Mission. These reviews were enabled by the wise counsel of membership drawn widely from across the diocese and benefited from healthy and wide consultation.

The headline financial position is shown in the SOFA on page 23. Across all funds we ended the year in a positive position due to increased value of our balance sheet. However, this hides the fact that our income was £462k less than our expenditure on the general fund. The challenge to be wise and good stewards of the financial resources entrusted to us of course remains as our parishes face another year of significant headwinds. We have such an exciting opportunity as we enter a period of stability with Bishop Philip’s arrival, and the intention to appoint a new suffragan bishop of Southampton later this year, as we renew our commitment to investing well and supporting our parishes as they seek to grow the Kingdom of God.

Ian Dighé Chair of the Winchester Diocesan Board of Finance

Page 3 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

The Trustees, who are also Directors for the purposes of Company Law, present their annual report, together with the audited financial statements, for the year ended 31 December 2023.

The Directors and Trustees are one and the same and in signing as Trustees, they are also signing the strategic report sections in their capacity as directors.

This combined report satisfies the legal requirements for:

LEGAL OBJECTS

The objects of the Diocese of Winchester cover most of Hampshire - a part of eastern Dorset, the unitary authority of Southampton and the eastern parts of the unitary authority of Bournemouth, Christchurch and Poole.

The Winchester Diocesan Board of Finance’s (WDBF) principal object is to promote, assist and advance the work of the Church of England in the Diocese of Winchester, by acting as the financial executive of the Winchester Diocesan Synod.

The WDBF has the following statutory responsibilities:

The strategic priorities of the company are established by the Diocesan Synod in communication with Deanery Synods, PCCs, and the Bishop of Winchester (in respect of his/her 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 nationally, taking forward shared commitments and priorities.

Page 4 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

STRATEGIC AIMS

In 2024, Bishop Philip will be launching Walking the Wessex Way – a new resource for discussion, reflection and prayer in parishes and worshipping communities – setting out an invitational vision for our dioceses building on our legacy of service, learning, growing and loving as we look to the future. This consultative process will lead to discerning a series of objectives and commitments for our Diocesan community over the coming years.

Due to the nature of our organisation, our objectives and strategic priorities are primarily delivered through our network of parishes, clergy, ministers, and worshipping communities. It is therefore vital that we invest in engaging, supporting, equipping, and challenging them to grow our shared mission, as we all seek to grow our mission and ministry.

By carrying out these priorities and in promoting the whole mission of the church (pastoral, evangelistic, social, and ecumenical), the directors are confident (having adhered to Charity Commission guidance) that the Charity delivers public benefit.

ACTIVITIES IN THE YEAR

Ministry Support

Throughout 2023, our support for local mission and ministry in our chaplaincies, schools, benefices and parishes has remained a foundational priority. At the time of writing, we have over 840 people authorised for ministry servicing across our dioceses in stipendiary, voluntary, lay and ordained roles. During 2023, the following activities are of particular note:

Support for Parishes & Schools

The fundamental purpose of the Diocesan Team continues to be the support, guidance, and advice we offer to our deaneries, benefices and parishes. We do this through a range of activities, events and service provision. In 2023 the following were of particular note:

Page 5 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Diocesan Support

As the contexts and challenges across our parishes and communities change, so too must the support offered at a diocesan level. 2023 continued the series of strategic reviews of different areas of work helping to ensure our structures are aligned to support our emerging strategy and statutory requirements.

We remain committed to ensuring all Diocesan Support costs are managed carefully and appropriately, to best serve mission and ministry in our parishes, chaplaincies, schools and communities. In 2023 this work included:

Page 6 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

As well as these strategic reviews, ongoing operational work continued in 2023 this included:

National Support

We have continued to engage with national structures and colleagues in meeting our shared responsibilities, and in seeking national funding to support local mission and ministry:

Strategic Development Programme

All our parishes are strategically important for our mission and ministry. It is therefore right that we continue to direct the majority of our resources each year into supporting parish ministry in all its forms, breadths and expressions. We continue to always explore external funding sources to support parish ministry, and in 2023, this included our ongoing Strategic Development Programme funded through national Church of England grants.

Page 7 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

FINANCIAL REVIEW

Financial Performance 2023

Our financial performance for 2023 was mixed. Like many organisations, the significant shifts and uncertainties in the global economic climate has impacted on our finances and budgetary assumptions. Across all funds the WDBF reported an operating surplus of £0.17m (2022: £0.11m) before transfers, investment gains and the impact of property revaluations. Total income increased by £0.09m to £13.18m and total expenses increased by £0.03m to £13.01m.

During the year unrealised gains on investments were £2.96m (2022: loss £2.81m), and gains on revaluation of tangible fixed assets £1.41m (2022: £2.24m). Our accounting policy under FRS 102 for accounting estimates, is to revalue 20% of the property portfolio each year.

The net effect of all the above is an overall increase in the value of all funds of £4.54m for the year (2022: decrease £0.35m) to £183.01m. The table below summarises this financial position:

2023 2022
£'000 £'000
Operating surplus/(deficit) 173 107
Other recognised gains and losses:
Unrealised (losses)/gains on investments 2,941 (2,814)
Realised gains/(losses) on investments 19 15
Sub-total -Net (Loss)/Gain on Investments 2,960 (2,799)
Unrealised gains/(losses) on tangible assets 1,409 2,241
Movement on Pension SchemeDeficit - 102
Net movement in funds for the year 4,542 (349)
Fund balance at 1st January 178,467 178,816
Fund balance at 31st December 183,009 178,467

General Fund

Income increased by 0.74% from £11.05m to £11.13m.

Giving from our parishes through Common Mission Fund (CMF), the mutual cost-sharing across the Diocese to fund mission and ministry, is the main incoming resource for the Diocese. We are deeply grateful to all our parishes who have continued to contribute to the CMF whilst tackling rising costs and diminishing reserves. We received £8.36m (2022: £8.52m). This highlights the huge financial pressures and challenges that our parishes continue to face since the start of 2020. In a challenging operating environment, property rentals remained broadly in line with previous year at £0.99m (2022: £1.09m) and investment income increased by 67% from £0.35m to £0.59m reflecting the higher interest rates on deposit funds across the year.

Page 8 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Expenditure increased by £0.74m from £11.04m to £11.78m

Resourcing ministry and mission continues to be our most significant expense stream. In 2023, we averaged 102 stipendiary clergy posts across our diocese (2022: 100) out of a budgeted total of 116.5 (2022: 116.5). Direct expenditure on clergy stipends was £5.23m compared to £5.20m in 2022. Clergy stipends increased by 7% from 01 April 2023. Our contribution rate to the Church of England Funded Pension Scheme (CEFPS) for clergy, decreased from 36% to 28% of the previous year’s National Minimum Stipend (NMS), from 01 January 2023. Expenditure on clergy housing was £32k higher than 2022 at £1.96m. Resettlement Grants and First Appointment Grants were £261k in 2023 compared to £277k in 2022.

Balance sheet position

The Directors consider that the balance sheet together with details in note 18 show broadly that the restricted and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net assets at the balance sheet date totalled £183.0m (2022: £178.5m), it should be noted that included in this total are properties, mostly in use for Clergy, whose value net of loans, used to buy them, amounted to £146.6m (2022: £146.9m). Much of the remainder of the assets shown in the balance sheet are held in restricted funds and cannot necessarily be used for the general purposes of the WDBF.

Free reserves

Having considered financial risk, liquidity requirement and the timing of cashflows throughout the year, the Trustees’ policy aim is to hold a balance of free reserves (general fund less tangible fixed assets net of long-term financing) on its general fund, equivalent to between 3 and 6 months budgeted unrestricted expenditure. The total unrestricted general funds balance of free reserves totals £4.2m. (2022: £7.2m). This balance represents the equivalent of 4.4 months of budgeted expenses for the diocese, which is within the agreed range. Whilst the DBF policy is to hold 3 months budgeted unrestricted expenditure in cash or short-term deposit (approximately £2.9m), this was exceeded at the end of December 2023 with the cash balance in the general fund of £4.3m. This was primarily to help with cashflow in Q1 2024 as a number of costs relating to the refurbishment of Old Alresford Place were due to be paid.

This leaves the WDBF in a good position moving into 2024 as we see months with low CMF collection and therefore lowest cash inflows expected in the first half of 2024, as parishes determine their own financial needs for the year ahead.

Designated Fund

The Trustees may, with the approval of the Board, designate 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, is set out in note 19. At 31 December 2023, total designated reserves were £1.7m (2022: £1.4m). This increase is largely due to unrealised gains on investments plus transfers from the general fund.

Restricted and Endowment Funds

As set out within Notes 17 and 18, the WDBF holds and administers a large number of restricted and endowment funds. As at 31 December 2023, restricted funds totalled £11.6m (2022: £10.8m) and endowment funds totalled £131.6m (2022: £128.0m). Neither are available for the general purposes Page 9 of 53 of the WDBF.

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Grant making policy

The Memorandum of Association of the WDBF 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 several trust funds, and these must be invested in accordance with the related trusts. The WDBF’s policy is to regularly review the assets of each fund for which it is responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Note 18 provides details of the assets of each fund, together with the related purposes, and Note 12 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 at CCLA (valued at mid) and their return during the year are set out in the following table:

Value at 31 % of 2023 Total 2022 Total
Dec 2023 portfolio Return Return
CCLA £'000
Investment Fund 21,949 68.3% 12.6% (9.2%)
Property Fund 1,336 4.2% (1.2%) (7.8%)
Deposit Fund 8,855 27.6% 4.5% 1.3%
Total 32,140 100.0%

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 10 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Future Financial Outlook & Priorities

The financial outlook of the WDBF, is intrinsically linked to the outlook and sustainability of our 240 parishes. We cannot ignore the very challenging few years parishes have faced both financially and in terms of decline in attendance. It is clear that we will not be seeing a quick bounce back to ‘normality’ in the next 12 months.

As such the Directors of the WDBF have agreed a new Diocesan Financial Framework , to help guide our finances over the next 5 to 7 years. This includes a commitment to retain the current stipendiary clergy headcount at a minimum of 116.5 FTE, an intentional and strategic use of some reserves and restricted funds to buttress ministry costs in the coming years, along with carefully targeted reviews of expenditure, structures and operational costs through an enhanced approach to financial governance and oversight.

Historic pension deficits for clergy and for lay employees are nil, due in part, to the careful stewardship of our colleagues in the Church of England Pensions Board. This has in part enabled us to increase stipend levels in 2024 by 7%, recognising the high rate of inflation, and the need to actively invest in the care and support of our clergy and their families.

Plans for the next triennial diocesan budget for 2024 to 2026 have been agreed and approved following a prolonged period of consultation and reflection with our PCCs, clergy, and key stakeholders. These plans will continue to evolve over the three-year period based on our experience. It is vital that we continue to build our future financial plans on clear feedback and data from those in the front line of our mission and ministry.

Set alongside our financial planning and stewardship, is the need to actively seek new ways of supporting our parishes to return to positions of growth and viability.

Page 11 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

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 mitigation 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 Diocesan Secretary, and through him other responsible officers. The following areas are considered to be the current highest strategic risk areas for the diocese.

diocese.
Risk Strategic Overview
Growth & Sustainability
Continued decline in the
numbers of in those involved in,
or supporting, the church in any
capacity		 A continued reduction in numbers of those involved in our Diocese will
adversely impact all areas of risk e.g. numbers of clergy in parishes,
laity directly involved in mission, macro/micro economic factors,
‘relevance’ due to controversies/ debates at national level, diocesan
finance due to fewer and less generous givers, volunteers needing
training such as safeguarding.
As we look forward it is vital that we continue to discern and invest in
sustainable models of ministry and mission that will intentionally seek
to address this decline. Accessing national strategic mission & ministry
investment funding, working with our new Diocesan bishop from 2023
to discern a new mission strategy, and continuing to invest in clergy
and parishes to help them grow their ministry must remain a
fundamental priority.
Safeguarding:
Child, adult at risk, or domestic
abuse
An occurrence of child, adult at
risk, or domestic abuse by
someone working for or on behalf
of the Church (in a parish or
parish-based organisation or at
the Diocesan Office)
Non-Current Cases
It comes to light that there were
instances of abuse in the past
which were not appropriately
dealt with by the Clergy/Diocese		 The Diocese has a Safeguarding Board that is independently chaired
and draws in senior officers from statutory agencies, law and
education as well as the Diocesan Secretary 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 (independently chaired). The Board
promotes best practice and continuously ensures that the Diocese is
adopting and developing appropriate policy and practice. No
safeguarding incidents were reported to the Charity Commissioners in
2023.
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.

Page 12 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

----- Start of picture text -----
Risk Strategic Overview
Financial: The Diocesan Board of Finance (DBF) is supported by a Finance
Diocesan Board of Finance Committee which regularly reviews its reserves position and cash flow
A serious loss of income, projections on a quarterly basis to ensure any unexpected losses in
investment market crash, income can be covered whilst remedial actions are undertaken.
unforeseen major expense, fraud,
and theft are all potential serious The DBF issues comprehensive Financial Standing Instructions
financial incidents for the Board. identifying levels of delegation, responsibility, and accountability. A
comprehensive review has been carried out and completed in early
2024.
Appropriate measures are in place to ensure that financial transactions
require two signatures and property purchases and major contracts
Custodian Trustee also require two director signatures in addition to the Diocesan
A parish enters major Secretary & Chief Operating Officer. The DBF ensures against its most
expenditure without sufficient significant serious incidents and all insurance policies are reviewed
resources, experiences fraud, has annually.
major unforeseen building or
staffing issues requiring The DBF offers some advice and support to parishes embarking on
significant expenditure. major projects or areas of expenditure, assisting them in assessing risk
and appropriate mitigations and will monitor parish accounts, with
deanery assistance, to be alert to any needs and problems arising.
People: The WDBF is responsible for a wide range of specialisms and different
Employment disciplines operating in an unusual legal and compliance framework.
Significant staff turnover, staff Each area requires a high level of expertise and experience. This
without appropriate represents an ongoing organisational challenge, as we seek to recruit
qualifications and skills mix for people with relevant experience whilst also managing expenditure on
evolving needs of the DBF and employed posts. The DBF has been building up a pool of consultants,
wider Diocese. partners and colleagues across the wider Church of England who can
provide some level of cover if and when required.
Appointments
The Diocese fails to make the Investment and improvement in appointment processes have been a
right appointments to parishes priority for the DBF over the recent years. More use is made of
and senior positions within the targeted testing and assessment, both prior to and during the early
Diocese. stages of a new employee’s appointment. Whilst these processes can
assist and improve appointment processes, the Directors recognise
that many diocesan and parish appointments do not fall under secular
employment legislation and are therefore risks which cannot be
mitigated entirely.
Reputation The Diocese cannot prevent all possible serious incidents across all
A serious incident causes adverse parts of the organisation. If a serious incident should arise the Diocese
publicity and a loss of confidence has a policy of open and transparent communication, supported by a
in the Diocese. communications team and national Church colleagues. The Diocese
works closely with statutory agencies and will always report serious
incidents to the Charity Commissioners. No serious incidents
were reported to the Charity Commissioners during 2023.
----- End of picture text -----

Page 13 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

STRUCTURE AND GOVERNANCE

Summary Information about the structure of the Church of England

The Church of England is the established Church and His Majesty the King is the Supreme Governor. It is organised into two provinces (Canterbury and York) and 42 Dioceses. Each Diocese is a ‘See’ under the care of a Bishop who is charged with the cure of souls of all the people within that geographical area. This charge is shared with priests within benefices and parishes 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’s affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops’ Council has a coordinating role for work authorised by the Synod; the Church Commissioners manage the historic assets of the Church of England; and the Church of England Pension Board administers the pension schemes for clergy and lay workers. Within each Diocese, overall leadership lies with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod. The Diocese itself is divided into 13 deaneries, each with its own Synod and within each parish there is a parochial church council which shares with the parish priest responsibility for the mission of the church in that place, in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod. Whilst each Diocese is 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.

Organisational structure

The Winchester Diocesan Board of Finance (WDBF) is a company limited by guarantee (No. 142351) and a registered charity (No. 249276) governed by its Memorandum and Articles of Association.

The company’s principal activity is to promote, assist and advance the work of the Church of England within the Diocese of Winchester. It was established in its present form in 1927 and is successor in title to the Winchester Diocesan 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: The Bishop of Winchester (currently in vacancy), 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. Members of the DBF have co-opted the Bishop of Southampton, Bishop of Basingstoke, Archdeacon of Winchester and the Dean for the duration of this triennium. The Chair of the House of Laity served as interim Chair of the WDBF up until 1[st] May 2023. From the 1[st] May 2023, a new Chair of the WDBF was appointed. The most recent elections were held in November 2021. Details of Trustees who served during the year are set out on page 18.

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 November 2021. The Synod elects six of the twelve Trustees of the Diocesan Board of Finance (as well as two of the ex officio trustees). Whilst the WDBF 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 governing documents or statutory regulations.

Page 14 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Decision making structure

Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of 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 Diocesan Secretary & Chief Operating Officer. The company meets once a year, at a 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 meet, within the context of the Bishop’s Council & Standing Committee, hold up to seven meetings during the year to formulate and coordinate policies on mission, ministry and finance by: -

The Trustees are assisted in their work by 2 sub-committees:

The Diocesan Finance Committee: The group monitors management accounts and budget, the use of assets and investment policies and exercises the authority delegated to it by the Trustees in areas such as grants and loans.

The Property Working Group: The Group has delegated responsibility from the WDBF to undertake some of the responsibilities under the Parsonages Measure; the Repair of Benefice Building Measure 1972; the PCC (Powers) 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 assets); and the Pastoral Measure 2011 (with regard to redundant churches). The Group meets 4 times a year to consider requests, suggestions and appeals from clergy relating to the care and maintenance of their houses.

Trustee recruitment, selection and induction

Trustees are members of the Bishop’s Council & Standing Committee and are selected as set out above. They are given induction and provided with trustee training at the outset of the triennium and at other times 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 loyalty.

Fundraising Code of Practice

The Diocese provides support to the parishes with regard to fundraising. Due regard is given to the Fundraising Code of Practice set by the Fundraising Regulator when providing the support to the parishes.

Page 15 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Remuneration of key management personnel

Emoluments of higher-paid employees are determined by a remuneration group consisting of the Bishop of Winchester, Chair of the WDBF and the Chair of the Diocesan Finance Committee. The terms of reference for this group are established by the Bishop’s Council and include regular appraisals, 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 Diocesan Secretary and his colleagues for the delivery of the day to day activities of the company. The Diocesan Secretary is given specific and general delegated authority to deliver the business of the 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 (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964, where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the 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 £20.6m as at 31 December 2023 (2022: £19.2m), are available from the WDBF on request, and are summarised in note 22. 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.

Related Parties

The WDBF is required to comply with Measures passed by the General Synod of the Church of England and is required to make annual payments to the Archbishops’ Council towards the costs and the national arrangements for training clergy. Details of these costs can be found in note 8. The WDBF currently receives an annual grant from The Benefact Trust (previously The All Churches Trust). Further details of these receipts can be found in note 2.

The WDBF has given financial support, including loans, to Launchpad Social Enterprise (LSE), a UK registered charity whose primary focus is on early years nurseries and pre-schools. WDBF has utilised its Social Responsibility restricted fund to provide this support. Details of the amounts owed from LSE at year end are set out in note 23.

The Portsmouth and Winchester Diocesan Board of Education (PWDBE) has now become a Charitable Incorporated Organisation as a result of the Diocesan Board of Education Measure which came into effect at the start of 2022, and detailed administrative and management matters are being finalised to ensure a smooth transition to this new status. Due to delays with the registration process, registration with The Charity Commission was not completed until 12 January 2024. The new CIO will have independent governance, finance, management and policies. Alongside Portsmouth DBF, WDBF is a grant giving body to the CIO.

Page 16 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

TRUSTEES’ RESPONSIBILITIES

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

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

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

In all matters, the Trustees have due regard to the Charity Governance Code which covers seven areas:

Statement of Disclosure to the Auditors

So far as the Trustees are aware:

Page 17 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

Appointment of Auditors

The re-appointment of Haysmacintyre LLP as auditors to the WDBF will be proposed at the Annual General Meeting.

ADMINISTRATIVE DETAILS

Trustees

No Trustee had any beneficial interest in the company during 2023. The following are the Trustees who served at any time during 2023 up to the date of this report:

Chair: Alastair Barron BA (Hons), MBA, FSyl (resigned 01.05.2023) Ian Dighé (appointed 01.05.2023) Ex officio: Philip Mounstephen BA, MA (Oxon) – Bishop of Winchester (from 10.10.2023) Andrew Micklefield BEd (Hons) - Chair of the House of Clergy Alastair Barron BA (Hons), MBA, FSyI – Chair of the House of Laity Synod House of Clergy: Timothy Matthews Rachel Noel Synod House of Laity: Esther Clift BSc (Hons), MSc, MCSP Ian Newman Gillian Gray Knight Madeline Hedley (from 26.04.2023) Co-opted: Deborah Sellin (resigned 12.12.2023) David Williams Richard Brand Jean Burgess (from 04.09.2023) Catherine Ogle Elspeth Mackeggie Gurney Nigel May MA CEng MIMechE (from 01.05.2023) Senior Staff and Advisers: Company Secretary: Colin Harbidge Diocesan Secretary: Colin Harbidge BA (Hons), PGDip, MCMI Financial Controller: Mark Teahan Director of Education: Jeff Williams MA, DPhil Directory of Ministry: Mark Collinson BSc, MA Director of Human Resources: Susan Beckett, FCIPD Head of Communications: Jemima Lewis Strategic Programme Manager Sarah Keen (from 06.06.2023) Parish Support Manager: Jayne Tarry Operations and Governance Manager: Cathy Laird

Page 18 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE TRUSTEES REPORT For the year ended 31 December 2023

ADMINISTRATIVE DETAILS (continued)

Registered Office: Diocesan Office, Old Alresford Place, Alresford, Hampshire, SO24 9DH Bankers: National Westminster Bank PLC, 105 High Street, Winchester, SO23 9AW Auditors: Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG Solicitors: Blake Morgan, New Kings Court, Tollgate, Chandler’s Ford, Hants SO53 3LG Investment Advisers : CCLA Investment Management Limited, One Angel Lane London, EC4R 3AB Glebe Agents: Carter Jonas LLP, 9a Jewry Street, Winchester, SO23 8RZ Insurers: EIG, Beaufort House, Brunswick Road, Gloucester, GL1 1JZ

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report included on pages 5-19, within their capacity as company directors.

ON BEHALF OF THE TRUSTEES

Ian Dighé Chair 04 June 2024

Colin Harbidge Company Secretary 04 June 2024

Page 19 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT For the year ended 31 December 2023

__________________

OPINION

We have audited the financial statements of Winchester Diocesan Board of Finance for the year ended 31 December 2023 which comprise the Statement of Financial Activities, 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 Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

Page 20 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT For the year ended 31 December 2023

__________________

whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page 17, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Page 21 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT For the year ended 31 December 2023

__________________

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

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Jane Askew (Senior Statutory Auditor)

Jane Askew (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London Date: 17 July 2024 EC4R 1AG

Page 22 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

Statement of Financial Activities For the year ended 31 December 2023

__________________

Restricted Endowment
Total
Total
General Designated
Funds
Funds
2023
2022
Note
£'000
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations
Parishes
2
8,362
-
-
-
8,362
8,524
Archbishops’ Council
2
329
-
1,266
-
1,595
1,463
Other
2
152
-
28
-
180
158
2
8,843
-
1,294
-
10,137
10,145
Charitable activities
3
620
-
24
-
644
722
Other trading activities
4
1,012
-
28
-
1,040
1,104
Investments
5
655
26
517
28
1,226
930
Other
6
(103)
-
-
235
132
187
Total
11,027
26
1,863
263
13,179
13,088
Unrestricted funds		 Restricted Endowment
Total
Total
General Designated
Funds
Funds
2023
2022
Note
£'000
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations
Parishes
2
8,362
-
-
-
8,362
8,524
Archbishops’ Council
2
329
-
1,266
-
1,595
1,463
Other
2
152
-
28
-
180
158
2
8,843
-
1,294
-
10,137
10,145
Charitable activities
3
620
-
24
-
644
722
Other trading activities
4
1,012
-
28
-
1,040
1,104
Investments
5
655
26
517
28
1,226
930
Other
6
(103)
-
-
235
132
187
Total
11,027
26
1,863
263
13,179
13,088
Unrestricted funds
8,843
-
1,294
-
10,137
10,145
620
-
24
-
644
722
1,012
-
28
-
1,040
1,104
655
26
517
28
1,226
930
(103)
-
-
235
132
187
11,027
26
1,863
263
13,179
13,088
Expenditure on:
Raising funds
7
Charitable activities
8		 (30)
-
-
-
(30)
(14)
(11,749)
(58)
(1,169)
-
(12,976)
(12,966)
Total
Net income/(expenditure) before investment
gains		 (11,779)
(58)
(1,169)
-
(13,006)
(12,980)
(752)
(32)
694
263
173
107
Net gains on investments 290
50
537
2,083
2,960
(2,799)
Net income/(expenditure)
Transfers between funds
11
Other recognised gains/(losses)
Net (expenditure)/income after transfers		 (462)
18
1,231
2,346
3,133
(2,692)
390
255
(358)
(287)
-
-
(72)
273
873
2,059
3,133
(2,692)
Gains on revaluation of fixed tangible (50)
-
(29)
1,488
1,409
2,241
-
-
-
-
-
102
Remeasurement of pension scheme
provision
Net movement in funds (122)
273
844
3,547
4,542
(349)
Total Funds at 1 January 2023 38,227
1,449
10,762
128,029
178,467
178,817
Total funds at 31 December 2023
18		 38,105
1,722
11,606
131,576
183,009
178,467

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

The notes on pages 26 to 53 form part of the financial statements.

Page 23 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE Company Number 142351

BALANCE SHEET

For the year ended 31 December 2023

__________________

FIXED ASSETS
Tangible assets
Investments
CURRENT ASSETS
Debtors
Cash on deposit
Cash at bank and in hand
CREDITORS: amounts falling due within one year
NET CURRENT ASSETS
Total assets less current liabilities
CREDITORS: Amounts falling due after more than one year
NET ASSETS
FUNDS
Unrestricted income funds:
General funds
Designated funds
Restricted funds
Endowment funds
TOTAL FUNDS		 Dec 2023
Dec 2022
£'000
£'000
146,564
146,981
25,494
22,612
172,058
169,593
2,993
2,710
8,855
8,346
1,252
1,124
13,100
12,180
(1,259)
(1,318)
11,841
10,862
183,899
180,455
(890)
(1,988)
183,009
178,467
38,105
38,227
1,722
1,449
39,827
39,676
11,607
10,762
131,575
128,029
183,009
178,467

The Notes on pages 26 to 53 form part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on 4[th] June 2024 and signed on behalf of the Board by:

Ian Dighé Chair

Page 24 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

STATEMENT OF CASH FLOWS For the year ended 31 December 2023

__________________

2023 2022
£,000 £,000 £,000 £,000
Cash flows from operating activities
Net cash (used in) operating activities (1,676) (2,079)
Cash flows from investing activities
Dividends, interest and rent from investments 1,226 930
Purchase of property and equipment (261) (1,546)
Purchase of investments - -
Sale of property and equipment 2,298 4,957
Sale of investments 78 73
Net cash provided by investing activities 3,341 4,414
Cash flows from financing activities
Repayments of lending 479 268
Repayments of borrowing (1,086) (131)
Cash outflows from new lending (421) (256)
Net cash (used in) financing activities (1,028) (119)
Change in cash and cash equivalents in the reporting period 637 2,216
Cash and cash equivalents at 1 January 9,470 7,254
Cash and cash equivalents at 31 December 10,107 9,470
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period (as per Statement of Financial Activities) 3,133 (2,692)
Adjustments for:
Revaluation (Gains) on Investments (2,960) 2,799
Dividends, interest and rent from investments (1,226) (930)
(Profit) on sale of functional assets (132) (187)
Decrease/(Increase) in debtors (283) (987)
(Decrease) in creditors (208) (83)
Net cash (used in) operating activities (1,676) (2,080)
Analysis of cash and cash equivalents
Cash on deposit 8,855 8,346
Cash at bank and in hand 1,252 1,124
10,107 9,470

Page 25 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

1. 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 valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (Second Edition, effective 1 January 2019), the Companies Act 2006 and applicable accounting standards (FRS102).

Going Concern

After reviewing the charity’s forecasts and projections, as described in the budget and outlook for 2024 on page 11, 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 financial statements on the going concern basis.

a) Income

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

b) Expenditure

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

Page 26 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

1. ACCOUNTING POLICIES (continued)

c) Tangible fixed assets and depreciation

Fixtures and fittings 15-30% per annum straight line basis

Page 27 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

1. ACCOUNTING POLICIES (continued)

e) Fund balances

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

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

f) Key Judgements

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

Page 28 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

2. DONATIONS

Parish Contributions

Parish Contributions
Current Year Apportionment
Shortfall in Contributions
Receipts for previous years
Current Year Apportionment
Shortfall in Contributions
Receipts for previous years		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
9,262
-
-
-
9,262
(936)
-
-
-
(936)
Unrestricted Funds
8,326
-
-
-
8,326
35
-
-
-
35
8,362
-
-
-
8,362
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
9,629
-
-
-
9,629
(1,134)
-
-
-
(1,134)
Unrestricted Funds
8,495
-
-
-
8,495
28
-
-
-
28
8,524
-
-
-
8,524

The majority of donations are collected from the parishes of the Diocese through the Common Mission Fund (CMF). Current year CMF receipts represent 89.9% of the total apportioned (2022: 88.2%), or, when receipts for previous years are included, 90.3% of the total apportioned (2022: 88.5%).

Archbishops' Council

Strategic Development grant
Ordinand Training grant
Strategic Development grant
Ordinand Training grant		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
-
-
924
-
924
329
-
342
-
671
Unrestricted Funds
329
-
1,266
-
1,595
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
-
-
527
-
527
192
-
744
-
936
Unrestricted Funds
192
-
1,271
-
1,463

Page 29 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

2. DONATIONS (continued)

Other Donations
All Churches Trust
Donations
All Churches Trust
Donations		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
120
-
-
-
120
32
-
28
-
60
Unrestricted Funds
152
-
28
-
180
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
138
-
-
-
138
16
-
4
-
20
Unrestricted Funds
154
-
4
-
158

Other Donations includes a donation in kind from Archbishops Council of £19,236.

3. INCOME FROM CHARITABLE ACTIVITIES

Statutory fees
Costs Recharged
Insurance Claims and Property Income
Miscellaneous income		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
405
-
-
-
405
93
-
-
-
93
103
-
-
-
103
19
-
24
-
43
Unrestricted Funds
620
-
24
-
644
Statutory fees
Costs Recharged
Insurance Claims and Property Income
Development Project Income
Miscellaneous income		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
484
-
-
-
484
92
-
-
-
92
89
-
-
-
89
-
-
10
-
10
15
-
32
-
47
Unrestricted Funds
680
-
42
-
722

Page 30 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________ 4. OTHER TRADING ACTIVITIES

Rental income on functional property
Other income
Rental income on functional property
Other income		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
926
-
28
-
954
86
-
-
-
86
Unrestricted Funds
1,012
-
28
-
1,040
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
1,013
-
31
-
1,044
60
-
-
-
60
Unrestricted Funds
1,073
-
31
-
1,104

5. INVESTMENT INCOME

Dividends receivable
Interest receivable
Rents receivable
Dividends receivable
Interest receivable
Rents receivable		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
218
21
436
28
703
367
5
81
0
453
70
-
-
-
70
Unrestricted Funds
655
26
517
28
1,226
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
239
21
437
28
725
107
1
18
-
126
79
-
-
-
79
Unrestricted Funds
425
22
455
28
930

Page 31 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________ 6. OTHER INCOME

Gains/(losses) on fixed asset disposals
Gains on fixed asset disposals		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
(103)
-
-
235
132
Unrestricted Funds
(103)
-
-
235
132
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
187
-
-
-
187
Unrestricted Funds
187
-
-
-
187

7. FUNDRAISING COSTS

Glebe agent's fee
Glebe agent's fee		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
30
-
-
-
30
Unrestricted Funds
30
-
-
-
30
Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
14
-
-
-
14
Unrestricted Funds
14
-
-
-
14

Page 32 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

8. CHARITABLE ACTIVITIES EXPENDITURE

Contributions to Archbishops' Council
Training for ministry
National Church Responsibilities
Grants and provisions
Mission Agency Pension Costs
Retired clergy housing costs
Pooling of ordinands' maintenance grant costs
Resourcing Ministry and Mission
Stipends and national insurance
Pension contributions
Housing costs
Removal, resettlement and other grants
RME Training for ministry
Other expenses
Support for parish ministry
Governance
Expenditure on Education
Support for church schools and parishes		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2023
£'000
£'000
£'000
£'000
£'000
366
-
-
-
366
212
-
-
-
212
39
-
-
-
39
11
-
-
-
11
-
-
147
-
147
(104)
-
-
-
(104)
Unrestricted Funds
524
-
147
-
671
4,257
-
-
-
4,257
969
-
-
-
969
1,956
-
4
-
1,960
299
-
71
-
370
225
-
227
-
452
97
-
5
-
102
7,803
-
307
-
8,110
1,053
-
700
-
1,753
1,998
58
15
-
2,071
10,854
58
1,022
-
11,934
371
-
-
-
371
11,749
58
1,169
-
12,976

Governance costs include auditor’s remuneration of £23,160 (2022: £22,428).

Analysis of Governance Costs
Central Support
Finance (incl. auditor fees)
HR
Diocesan Office
Registrar Costs		 2023
2022
£'000
£'000
914
831
491
318
298
256
235
147
133
98
2,071
1,650

Page 33 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

8. CHARITABLE ACTIVITIES EXPENDITURE (continued)

Contributions to Archbishops' Council
Training for ministry
National Church Responsibilities
Grants and provisions
Mission Agency Pension Costs
Retired clergy housing costs
Pooling of ordinands' maintenance grant costs
Resourcing Ministry and Mission
Stipends and national insurance
Pension contributions
Housing costs
Removal, resettlement and other grants
RME Training for ministry
Other expenses
Support for parish ministry
Lay pension deficit provision
Governance
Expenditure on Education
Support for church schools and parishes		 Restricted
Endowment
Total
General
Designated
Funds
Funds
2022
£'000
£'000
£'000
£'000
£'000
366
-
-
-
366
224
-
-
-
224
31
-
-
-
31
15
-
-
-
15
-
-
139
-
139
(90)
-
-
-
(90)
Unrestricted Funds
546
-
139
-
685
3,876
45
-
-
3,921
1,141
-
-
-
1,141
1,921
4
4
-
1,929
449
-
454
-
903
247
-
374
-
621
70
-
-
-
70
7,704
49
832
-
8,585
872
-
836
-
1,708
-
1,564
55
10
20
1,649
10,140
104
1,678
20
11,942
339
-
-
-
339
11,025
104
1,817
20
12,966
Analysis of Expenditure-2023
Raising funds
Investment management costs
Charitable Activities
Contributions to Archbishop's Council
Resourcing ministry and mission
Education		 Activities
Grant
Support
Total
Undertaken
Funding of
Costs
2023
Directly
Activities
£'000
£'000
£'000
£'000
30
-
-
30
-
671
-
671
9,538
643
1,753
11,934
371
371
9,939
1,314
1,753
13,006

Page 34 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

8. CHARITABLE ACTIVITIES EXPENDITURE (continued)

Analysis of Expenditure- 2022
Raising funds
Investment management costs
Charitable Activities
Contributions to Archbishop's Council
Resourcing ministry and mission
Education		 Activities
Grant
Support
Total
Undertaken
Funding of
Costs
2022
Directly
Activities
£'000
£'000
£'000
£'000
14
-
-
14
-
684
-
684
9,441
794
1,708
11,943
339
339
9,794
1,478
1,708
12,980
Analysis of Grants Funding 2023
From unrestricted funds for national church responsibilities
Archbishops' Council (note 8)
From unrestricted funds
First Appointment, Resettlement and removal
Ordinands' training, receiving maintenance
QI costs reimbursed to Parishes
Total from unrestricted funds
From restricted funds for various purposes
Clergy for training & welfare
Ordinands' training, receiving maintenance
Energy Grants to Parishes
Widows and dependants of clergy
RME Ordinands in training
Other grants
Total from restricted funds for various purposes
Total		 Total
Individuals
Institutions
2023
No.
£'000
£'000
£'000
1
671
43
261
261
30
297
297
48
39
39
121
558
39
597
14
29
29
3
2
27
29
38
28
28
6
2
2
49
51
75
126
2
25
25
112
84
155
239
234
642
194
1,507

Page 35 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

8. CHARITABLE ACTIVITIES EXPENDITURE (continued)

Analysis of Grants Funding 2022
From unrestricted funds for national church responsibilities
Archbishops' Council (note 8)
From unrestricted funds
Clergy for training & welfare
First Appointment, Resettlement and removal
Ordinands' training, receiving maintenance
Grant to Parish for building costs
RME Ordinands in training
QI costs reimbursed to Parishes
Total from unrestricted funds
From restricted funds for various purposes
Clergy for training & welfare
Hardship grants to clergy
Ordinands' training, receiving maintenance
Energy Grants to Parishes
Widows and dependants of clergy
RME Ordinands in training
Other institutional grants
Total from restricted funds for various purposes
Total		 Total
Individuals
Institutions
2022
No.
£'000
£'000
£'000
1
685
2
7
7
46
270
270
28
314
314
1
138
138
2
0
25
25
51
35
35
130
591
198
789
14
29
29
106
106
-
106
1
1
1
201
215
215
5
3
3
56
64
216
280
0
383
203
431
634
514
794
629
2,108

Page 36 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

9. STAFF & TRUSTEES

Staff Costs
Wages and salaries
National insurance contributions
Pension costs
Lay pension deficit provision change		 2023
2022
£'000
£'000
1,848
1,696
204
183
272
227
-
(12)
2,324
2,094

Included in the above are payments made under settlement agreements of £nil (2022: £10,267)

The average number of persons employed during the year based on full-time equivalents:
2023
2022
fte
fte
Resourcing ministry:
Winchester School of Mission
10
8
Strategic Development
3
4
Administration and Financial management
23
25
Safeguarding
5
4
Property
3
3
Fundraising
2
1
46
45		 The average number of persons employed during the year based on full-time equivalents:
2023
2022
fte
fte
Resourcing ministry:
Winchester School of Mission
10
8
Strategic Development
3
4
Administration and Financial management
23
25
Safeguarding
5
4
Property
3
3
Fundraising
2
1
46
45
46
45
The average number of persons employed during the year:
Resourcing ministry:
Winchester School of Mission
Strategic Development
Administration and Financial management
Safeguarding
Property
Fundraising		 2023
2022
no.
no.
11
9
4
5
28
28
5
5
4
3
3
1
55
51

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

2023 2022
£60,001 to £70,000 4 2
£70,001 to £80,000 1 2
£80,001 to £90,000 - 1

Pension payments of £48,446 (2022: £45,802) were made for these employees

Page 37 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

9. STAFF & TRUSTEES (continued)

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing, and controlling the activities of the Diocese. During 2023 they were:

Diocesan Secretary & Company Secretary Colin Harbidge
Director of Education Jeff Williams (67%)
Director of Human Resources Susan Beckett
Director of Ministry Mark Collinson
Head of Communications Jemima Lewis
Financial Controller Mark Teahan

Remuneration, pensions, and expenses for the 6 employees amounted to £493,030 (2022: £420,002)

Trustees’ emoluments

No Trustee received any remuneration for services as Trustee. 3 Trustees received travelling and out of pocket expenses, totalling £221 (2022: £nil) in respect of General Synod duties, duties as Archdeacon or Area/Rural Dean, and other duties as Trustees. No Trustee was in receipt of a clergy resettlement grant in 2023 (2022: Nil).

The following table gives details of the Trustees who were in receipt of a stipend and/or housing provided by the WDBF during the year:

uring the year:
Stipend Housing
The Revd A Micklefield Yes Yes
The Revd Dr T Matthews Yes Yes
The Revd R Noel Yes Yes
2022 Stipend Housing
The Revd A Micklefield Yes Yes
The Revd Dr T Matthews Yes Yes
The Revd R Noel Yes Yes

There were no other related party transactions in the current year or the prior year.

The WDBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than bishops and cathedral staff. The WDBF is also responsible for the provision of housing for stipendiary clergy in the diocese including the Suffragan Bishops but excluding diocesan bishop and cathedral staff. The WDBF paid an average of 137 (2022: 133) stipendiary clergy as office holders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

Stipend Costs

Stipends
National insurance contributions
Pension costs - current year
Pension costs - deficit reduction		 2023
2022
£'000
£'000
3,929
3,613
328
308
969
1,141
0
143
5,226
5,205

Page 38 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________ 10. ANALYSIS OF TRANSFERS BETWEEN FUNDS

2023
From General fund to Restricted fund to eliminate negative balances
From Restricted fund to General fund for Education costs
From Restricted fund to General fund for Stewardship costs
From Restricted fund to General fund for Net Zero Carbon
From Restricted fund to General fund for Racial Justice
From Restricted fund to General fund for clergy & ministry costs
From Restricted fund to General fund for social responsibility costs
From Endowment fund to General fund for clergy & ministry costs
From Endowment fund to General fund for building costs		 Restricted
Endowment
General
Designated
Funds
Funds
£'000
£'000
£'000
£'000
(257)
255
1
-
130
-
(130)
-
23
-
(23)
-
9
-
(9)
-
5
-
(5)
-
188
-
(188)
-
6
-
(6)
-
28
-
-
(28)
259
-
-
(259)
Unrestricted Funds
390
255
(358)
(287)
2022
From General fund to Restricted fund to eliminate negative balances
From Restricted fund to General fund for Education costs
From Restricted fund to General fund for Stewardship costs
From Designated fund to General fund for grant to parish		 Restricted
Endowment
General
Designated
Funds
Funds
£'000
£'000
£'000
£'000
(289)
-
289
-
130
-
(130)
-
37
-
(37)
-
138
(138)
-
-
Unrestricted Funds
16
(138)
122
-

11. TANGIBLE FIXED ASSETS

Valuation as at:
1 January 2023
Additions
Disposals
Revaluation
31 December 2023
Depreciation:
1 January 2023
Disposals
Charge for the year
31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022		 Freehold
Land &
Buildings
Office
Equipment
Total
£'000
£'000
£'000
146,981
8
146,989
261
-
261
(2,165)
-
(2,165)
1,487
-
1,487
146,564
8
146,572
-
(8)
(8)
-
-
-
-
-
-
-
(8)
(8)
146,564
-
146,564
146,981
-
146,981

All of the properties in the balance sheet are freehold and are vested in the WDBF, except for benefice houses which are vested in the incumbent.

Page 39 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

12. FIXED ASSET INVESTMENTS

12. FIXED ASSET INVESTMENTS
Unrestricted funds
Unlisted Investments
Restricted funds
Unlisted Investments
Endowment funds
Investment Property
Unlisted Investments
Total		 As at 1st
Net
As at 31st
January
Gains /
December
2023
Additions
Disposals
(Losses)
2023
£'000
£'000
£'000
£'000
£'000
3,240
-
-
340
3,580
7,687
-
(11)
537
8,213
1,059
-
(48)
1,123
2,134
10,626
-
-
941
11,567
11,685
-
(48)
2,064
13,701
22,612
-
(59)
2,941
25,494

13. DEBTORS

Due within one year
Current year Common Mission Fund
Loans to parishes
Loans to others
Other debtors and prepayments
Due after more than one year
Loans to parishes
Other Loans
Total Debtors		 2023
2022
£'000
£'000
240
146
73
244
75
69
849
627
1,237
1,086
992
840
764
784
1,756
1,624
2,993
2,710

Page 40 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

14. CREDITORS: amounts falling due within one year

14. CREDITORS: amounts falling due within one year
Due within one year 2023
2022
£'000
£'000
Loan repayments
Deferred income
Other taxes and social security
Creditor relating to sale proceeds of closed school
Other creditors and accruals
Pension scheme liabilities:
CEFPS for Clergy
Church Workers DBS
Total creditors: amounts falling due within one year		 490
390
29
70
53
-
400
400
287
458
-
-
-
-
1,259
1,318

15. CREDITORS: amounts falling due after more than one year

Due after more than one year

2023
2022
£'000
£'000
Loan repayment instalments due after more than one year
Church Commissioners value-linked loans
NatWest Bank value-linked loans
Loan from CCLA
Other loans
Total creditors: amounts falling due after more than one year
The maturity of the above loans may be analysed as follows:
Between one and two years
Between two and five years
In five years and more		 184
61
124
138
350
1,000
232
789
890
1,988
30
29
440
86
420
1,873
890
1,988

Page 41 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________ 16. ANALYSIS OF CHANGES IN DEBT

16. ANALYSIS OF CHANGES IN DEBT
2023
Cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year		 As at 1st
As at 31st
January
December
2023
Cashflows
Other
2023
£'000
£'000
£'000
£'000
9,470
637
-
10,107
(390)
(100)
-
(490)
(1,987)
1,097
-
(890)
7,093
1,634
-
8,727
2022
Cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year		 As at 1st
As at 31st
January
December
2022
Cashflows
Other
2022
£'000
£'000
£'000
£'000
7,254
2,216
-
9,470
(29)
(361)
-
(390)
(2,319)
332
-
(1,987)
4,906
2,187
-
7,093

Page 42 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________ 17. SUMMARY OF FUND MOVEMENTS – CURRENT YEAR

Unrestricted Fund
General
General Designated Fund
General Designated Fund
Parish mission and development
Maclean
OAP Property
Building New Church
Planned maintenance sinking fund
Sustainability Fund
Clerical Registry fund
Restricted Funds
General Restricted Fund
Pastoral fund
Parsonages endowment income
Retired Clergy houses fund
Major Ball settlement income
Penrose income fund
Clergy welfare income fund
Chalke Bequest income
Church schools fund
Queen Victoria clergy fund
Pember income fund
Widows and dependants fund
Thorrold library fund
ICSF grant fund
Council for Social Responsibility
FaIrbairn trust
Tale Tellers
Christopher library
RME Training for Mission
Winchester Mission Action
New Church Buildings
Northbrook
Giving Advisor
Schools Development Fund
Ministry Hardship Fund
Net Zero Carbon Funding
RMF Ordinands
Racial Justice
Endowment Funds
Expendable
Benefice houses
Permanent
Stipends fund capital
Parsonages endowment capital
Major Ball settlement capital
Penrose capital
Clergy welfare capital
Chalke bequest capital
Widows and dependants capital
Thorrold library capital
Pember capital
Christopher Library
Chute endowment
Total funds		 Total
01 Jan
2023
Income
Expenditure
Transfers
Gains &
Losses
31 Dec
2023
£'000
£'000
£'000
£'000
£'000
£'000
38,227
11,129
(11,779)
390
137
38,105
(1)
-
-
1
-
-
107
-
-
-
-
107
452
19
-
-
36
507
753
-
-
-
-
753
335
6
-
-
14
355
(106)
-
-
106
-
-
(5)
-
-
5
-
-
(85)
-
(58)
143
-
-
1,449
26
(58)
255
50
1,722
27
25
(53)
-
-
-
-
-
-
-
-
1
-
-
-
-
1
3,094
58
(151)
-
44
3,046
8
5
(9)
-
-
4
81
15
-
(15)
(3)
78
833
203
(30)
(171)
37
872
14
2
-
-
(2)
-
14
12
1
-
-
-
13
-
3
-
-
-
3
80
-
-
-
3
83
956
36
(10)
-
77
1,059
24
-
-
-
-
24
420
13
-
-
37
469
695
63
-
-
105
863
338
12
(1)
-
30
380
2
-
-
-
-
2
4
-
-
-
-
4
559
268
(256)
-
-
571
275
924
(671)
-
-
528
-
-
-
-
-
-
4
-
-
-
-
4
35
24
-
(23)
-
36
3,299
158
-
(130)
172
3,499
-
-
(1)
1
-
-
-
15
-
(9)
-
6
-
49
(2)
-
-
47
-
5
-
(5)
-
-
1
10,763
1,878
(1,183)
(358)
503
11,607
95,763
-
-
-
1,712
97,474
22,921
-
-
-
1,347
24,268
788
-
-
-
75
863
157
-
-
-
15
172
344
-
-
-
33
377
6,429
-
-
-
477
6,906
63
1
-
(1)
6
68
198
-
-
-
19
216
218
-
-
-
21
239
884
27
-
(27)
77
961
4
-
-
-
1
5
260
-
-
(259)
25
25
128,029
28
-
(287)
3,805
131,575
178,469
13,061
(13,020)
-
4,495
183,009

Page 43 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

17. SUMMARY OF FUND MOVEMENTS – PREVIOUS YEAR

Unrestricted Fund
General
General Designated Fund
General Designated Fund
Parish mission and development
Maclean
OAP Property
Building New Church
Planned maintenance sinking fund
Sustainability Fund
Clerical Registry fund
Restricted Funds
General Restricted Fund
Pastoral fund
Parsonages endowment income
Retired Clergy houses fund
Major Ball settlement income
Penrose income fund
Clergy welfare income fund
Chalke Bequest income
Church schools fund
Queen Victoria clergy fund
Pember income fund
Widows and dependants fund
Thorrold library fund
ICSF grant fund
Council for Social Responsibility
FaIrbairn trust
Tale Tellers
Christopher library
RME Training for Mission
Winchester Mission Action
New Church Buildings
Northbrook
Giving Advisor
Schools Development Fund
Ministry Hardship Fund
Endowment Funds
Expendable
Benefice houses
Permanent
Stipends fund capital
Parsonages endowment capital
Major Ball settlement capital
Penrose capital
Clergy welfare capital
Chalke bequest capital
Widows and dependants capital
Thorrold library capital
Pember capital
Christopher Library
Chute endowment
Total funds		 Total
01 Jan
2022
Income
Expenditure
Transfers
Gains &
Losses
31 Dec
2022
£'000
£'000
£'000
£'000
£'000
£'000
38,411
11,048
(11,039)
15
(207)
38,227
(1)
-
-
-
-
(1)
107
-
-
-
-
107
492
17
-
-
(57)
452
753
-
-
-
-
753
491
5
(4)
(138)
(20)
335
(106)
-
-
-
-
(106)
40
-
(45)
-
-
(5)
(30)
-
(55)
-
-
(85)
1,746
22
(105)
(138)
(77)
1,449
-
242
(215)
-
-
27
(267)
-
(1)
267
-
(0)
1
-
-
-
-
1
3,290
54
(142)
-
(108)
3,094
6
5
(2)
-
-
8
73
13
-
-
(5)
81
810
180
(29)
(46)
(82)
833
13
1
-
-
-
14
10
2
-
-
-
12
(17)
3
(2)
17
-
(0)
90
-
-
-
(10)
80
1,039
32
(7)
-
(107)
956
24
-
-
-
-
24
462
12
-
-
(54)
420
914
37
(100)
-
(156)
695
371
10
(1)
-
(42)
338
2
-
-
-
-
2
4
-
-
-
-
4
494
442
(377)
-
-
559
572
537
(834)
-
-
275
(6)
-
-
6
-
(0)
4
-
-
-
-
4
40
32
-
(37)
-
35
3,742
140
-
(130)
(453)
3,299
-
60
(106)
46
-
-
11,671
1,804
(1,817)
122
(1,017)
10,762
93,545
-
-
-
2,218
95,763
23,059
-
-
-
(138)
22,921
893
-
-
-
(105)
788
200
-
(20)
-
(23)
157
390
-
-
-
(46)
344
7,097
-
-
-
(668)
6,429
70
1
-
-
(8)
63
224
-
-
-
(26)
198
247
-
-
-
(29)
218
965
27
-
-
(108)
884
5
-
-
-
(1)
4
294
-
-
-
(34)
260
126,989
28
(20)
-
1,032
128,029
178,817
12,901
(12,980)
-
(270)
178,467

Page 44 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

18. SUMMARY OF ASSETS BY FUND – CURRENT YEAR

Unrestricted Fund
Designated Funds
Restricted Funds
Endowment Funds
Total funds		 Current
Tangible
Investments
Assets
Creditors
Net Assets
£'000
£'000
£'000
£'000
£'000
-
2,985
9,769
(4,980)
7,774
33,557
627
238
(2,368)
32,054
1,536
8,181
5,151
(3,261)
11,607
111,471
13,701
6,709
(307)
131,574
Fixed Assets
146,564
25,494
21,867
(10,916)
183,009

18. SUMMARY OF ASSETS BY FUND – PREVIOUS YEAR

Unrestricted Fund
Designated Funds
Restricted Funds
Endowment Funds
Total funds		 Current
Tangible
Investments
Assets
Creditors
Net Assets
£'000
£'000
£'000
£'000
£'000
-
2,662
6,339
(1,784)
7,217
33,953
578
(2,071)
-
32,460
1,537
7,687
3,060
(1,521)
10,763
111,491
11,685
4,851
-
128,027
Fixed Assets
146,981
22,612
12,179
(3,305)
178,467

Page 45 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

19. DESCRIPTION OF FUNDS

General Fund: The general fund is the WDBF’s unrestricted undesignated fund available for any of the WDBF’s purposes without restriction. Parish Mission and Development Fund: A fund created in the mid-2000s by the then Bishop’s Council to support mission projects in parishes as part of the mission strategy in place at the time. Strategies moved on and fund was never fully used as priorities changed. Designated Fund to be wound up in 2024 and returned to General Fund. Maclean Fund: The Maclean Fund originated with an unrestricted bequest in 1948 by the late Sir Alexander Maclean. The WDBF has designated this fund to assist with expenditure on clergy houses which could not be met from any other fund. OAP Property: Fund representing the asset at Old Alresford Place net of the related loan. Building New Church: Designated fund created by the directors of the WDBF in mid 2000s. Fund to be reviewed during 2024 to ascertain if original purposes are still required. Planned maintenance sinking fund: Designated fund created to fund maintenance works for Old Alresford Place. Fund ceased to be utilised in 2020 so will be reviewed and returned to the General Fund during 2023. Sustainability Fund: Designated fund representing a grant made from the Church commissioners during 2021 to support DBFs in managing the financial implications of the pandemic. Original Grant now fully expended so fund to be closed. Clerical Registry Fund: Designated Fund originally created from the surplus assets of the Winchester & Portsmouth Diocesan Clerical Registry which were passed to the WDBF when the Charity was wound up. Funds used to cover costs of the Registry. Once fully expended, this Designated Fund will be closed. Pastoral Fund: The diocesan pastoral account was set up under the provisions of the Pastoral Measure 1983. The restricted purposes for which the account may be used are:  to defray costs incurred for the purposes of the Measure or any scheme or order made under the Measure except for salaries of regular diocesan employees  to make loans or grants for the provision, restoration, improvement or repair of churches and parsonage houses in the diocese  other purposes of the diocese or any benefice or parish in the diocese  to make grants or loans to any other diocese  to transfer funds to the diocesan stipends fund income or capital accounts. Retired Clergy Houses Fund: This restricted fund, formerly known as the Clergy Retirement Houses Fund, represents the unexpended balance of a special appeal for funds made in the early 1980s for the provision 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 of this fund to include housing provision for clergy widows and deserted clergy spouses. Major Ball settlement: This restricted fund represents the unexpended accumulated income of a settlement for the benefit of the parishes of Brown Candover and Chilton Candover. Penrose Legacy Income: This fund represents the unexpended accumulated income of a legacy for the benefit of clergy, who in the opinion of the WDBF are most in need of grants. In recent years the WDBF has applied the income for grants to clergy for extended study leave.

Page 46 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

19. DESCRIPTION OF FUNDS (continued)

Clergy Welfare Fund: 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 which the trustee may apply the income are as follows: for
the benefit of clergy in the Diocese of Winchester, at the discretion of the Bishop; to
assist ordination candidates; to assist with the higher education of children of the
clergy in the Diocese.
Chalke Bequest: Bequest from Miss Winifred Joan Chalke to be used for the benefit of Industrial
Mission.
Church Schools Fund: The church schools fund represents unexpended accumulations of sale proceeds of
redundant Church of England School properties. Its use is restricted by law to capital
and maintenance work to Church of England schools in the diocese and education
generally at Church of England schools in the diocese. The WDBF is trustee of these
funds, which are managed on a day to day basis by and in consultation with the Board
of Education.
Queen Victoria Fund: Restricted Fund to receive any grants made to the WDBF by the Queen Victoria Fund
– a separate grant making charity that provides small grants for clergy welfare.
Pember Income Fund: The annual income of the Pember Fund is restricted by a Charity Commissioners’
Scheme to the payment of Winchester Diocesan clergy pensions. 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 making grants to
widows of such clergy and their dependants.
Clergy Widows and Dependants: These funds have been left to, or settled with, the WDBF specifically for the benefit
of clergy widows and dependants. Fund reviewed by the WDBF in 2023 with a view
to seeking approval from the charity Commission to expand its purposes.
Thorrold Library fund: The purpose of this fund is to provide a theological library for the clergy of the
Diocese. The Thorrold and Lyttelton Library has been loaned to the University of
Winchester to secure its future accessibility and development.
Fairbairn Trust: The Fairbairn Trust, of which the WDBF is Trustee, was a bequest of the late Sir Arthur
Fairbairn for the Church of England’s mission to deaf and hard-of-hearing people in
the Diocese. Grants are awarded to parishes and local deaf clubs.
Diocesan Council for Social Responsibility:
The Council for Social Responsibility Fund exists to support “the advancement of the
Christian religion within the Diocese of Winchester by promoting Christian
engagement with and concern for people’s needs in the whole of society, and to
reflect upon social issues in the light of the Gospel’”.
ICSF Grant for Clergy Houses: This fund arose 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.
Benefice House Endowment: This restricted fund consists of income generated by the associated endowment the
income is entirely transferred annually to the general fund where it is applied for its
specified purpose of benefice house outgoings.

Page 47 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

19. DESCRIPTION OF FUNDS (continued)

Diocesan Stipends Fund Capital: The diocesan stipends capital fund has been created from the diocesan stipends fund
capital account assets held on behalf of the diocese by the Church Commissioners
under the Endowments and Glebe Measure 1976 to provide income for clergy
stipends. It represents the accumulated sale proceeds of glebe property, sale
proceeds of benefice houses and surplus benefice endowments following pastoral
reorganisation. Capital funds may be used 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 Securities Funds, or
simply held on deposit.
Benefice Property Fund: The benefice property fund consists of resources restricted to provision of benefice
houses in the diocese. They are represented by the benefice houses or by sale
proceeds of former benefice houses held on suspense by the Church Commissioners.
Although benefice houses are vested in the incumbents for the time being of the
benefices concerned, the DBF is obliged to maintain them, to ensure that there are
sufficient benefice houses for the pastoral structure of the diocese; in addition, where
a benefice house is no longer required then it is usually transferred into the
unrestricted corporate ownership of the WDBF.
Chalk Bequest: Bequest from Miss Winifred Joan Chalk to be used for the benefit of Industrial
Mission.
Chute Fund: 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 & Diocesan Offices.
Christopher Library: Gift from OAP Trustees in 2009 – Income is used to support the salary of resources
assistant in the Resources Centre.
Tale Tellers: Gift from OAP Trustees in 2009 – Income is used to support the salary of resources
assistant in the Resources Centre.
RME Training for Mission: Income received from Church Commissioners to fund theological training of
ordinands. Any funds not spent on training are required to be held by the WDBF with
the expectation that the surplus will be returned to the Church Commissioners.
Winchester Mission Action: Restricted Fund for any grants received from the National CofE Strategic
Development Fund or its successors. Fund can only be used to support the costs of
projects approved by the National Strategic Mission & Ministry Investment Board.
Giving Advisor Fund: Grant provided by the Church Commissioners to fund additional resource in our
stewardship team. Funding tapers over a 3 year period.
Sustainability Fund: To aid transition.

Page 48 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

20. PENSIONS

The DBF participates in two pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the DBF and the other participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy. The other is the Church Workers Pension Fund. The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

These schemes are multi-employer last 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 risks associated with the current and former employees of other entities participating in the scheme. For multi-employer schemes where this is the case, paragraph 28.11 of FRS102 requires the DBF to account for pension costs on the basis of contributions actually payable to the scheme in the year and, where contributions are affected by a surplus or deficit in the scheme, to disclose information about the surplus or deficit and the implications of the surplus or deficit for the DBF. A valuation of each scheme is carried out once every three years.

Church of England Funded Pension Scheme (CEFPS)

The membership figures that we hold as at December 2022 and December 2023 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 calculations, so are provided here for reference.

December 2023 December 2022
Number of members at this Responsible Body 143 140

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, which were £968,753 in 2023 (2022: £1,141,210), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022: £143,000).

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

Page 49 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

20. PENSIONS (continued)

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

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

% ofpensionable stipends
31 December 2021 7.1% payable from January 2021 to December 2022
31 December 2022 Nil
31 December 2023 Nil

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

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2023 is nil. The movement in the balance sheet liability over 2022 and over 2023 is set out in the table below.

2023 2022
Balance sheet liability at 1 January - 233,000
Deficit contribution paid - (143,000)
Interest cost (recognised in SoFA) - -
Remaining change to the balance sheet liability* (recognised in SoFA) - (90,000)
Balance sheet liability at 31 December - -

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2023 or December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

December 2023 December 2022 December 2021
Discount rate n/a n/a 0.0% pa
Price inflation n/a n/a n/a
Increase to total pensionable payroll n/a n/a -1.5% pa

Page 50 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

20. PENSIONS (continued)

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

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

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two sub-sections;

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

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

Pension Builder Scheme

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

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

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2023: £271,954, 2022: £ 226,825).

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

For the Pension Builder Classic section, the 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the 2019 valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The next valuation is due as at 31 December 2022. Calculations for this are currently under way.

Page 51 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

20. PENSIONS (continued)

Teachers’ pension scheme (TPS)

The WDBF made contributions to the TPS on behalf of 1 employee who had previously been a teacher. The TPS is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and from 1 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 is an unfunded scheme and members contribute on a ‘pay as you go’ basis, these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2017 and full details are available on the Government website at: https://www.gov.uk/government/collections/teachers-pension-scheme.

21. OPERATING LEASES

Total amounts payable under non-cancellable operating leases are as follows:

Land and Buildings:
Within one year of the balance sheet date
In the second to fifth years inclusive of the balance sheet date
Other operating Leases:
Within one year of the balance sheet date
In the second to fifth years inclusive of the balance sheet date		 2023
2022
£'000
£'000
-
17
-
-
0
17
5
7
-
-
5
7

Page 52 of 53

WINCHESTER DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023

________________

22. FUNDS HELD AS CUSTODIAN TRUSTEE

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

Funds Held As Custodian Trustee

Funds Held As Custodian Trustee
CBF Church of England Investment Fund income shares
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
Other fixed interest stocks
CBF Church of England Deposit Fund
Cash at bank		 2023
2022
£'000
£'000
17,666
16,314
274
273
230
245
32
2
328
316
104
104
2,000
1,372
12
570
20,645
19,195

23. RELATED PARTIES

During the year, the charity provided a grant to Launchpad Social Enterprise of £25,000 (2022: £100,000). Launchpad Social Enterprise was set up by WDBF in 2015 using funds from the charity’s Council for Social Responsibility restricted fund.

At 31 December 2023, loans totalling £650,500 (2022: £725,000) were owed from Launchpad Social Enterprise. The loans are interest free and repayable over 10 years.

Page 53 of 53