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2022-12-31-accounts

Annual Report and Financial Statements 2022

Norwich Diocesan Board of Finance Limited Supporting the mission and ministry of the Diocese of Norwich

Transformed by Christ: Prayerful, Pastoral, Prophetic

www.dioceseofnorwich.org www.dioceseofnorwich.org

THE NORWICH DIOCESAN BOARD OF FINANCE LIMITED (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

INDEX

Page
Reference and Administrative Information 2
Summary Information about the Structure of the Church of England 3 – 4
Chairman’s Statement 5 – 7
The Trustees’ and Directors’ Report
incorporating the Strategic Report 8 – 17
Independent Auditor’s Report 18 – 19
Consolidated Statement of Financial Activities 20
Consolidated Summary Income and Expenditure Account 21
Company Balance Sheet 22
Consolidated Balance Sheet 23
Consolidated Cash Flow Statement 24
Notes to the Accounts 25 – 48

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

REFERENCE AND ADMINISTRATIVE INFORMATION

The Bishop’s Council of Trustees (Board of Directors) Mark Jeffries (Chairman) as at 20 May 2023 Mark Allbrook The Ven. Steven Betts The Very Revd. Dr Andrew Braddock (appointed 28 January 2023) Paul Cracknell The Ven. Catherine Dobson (appointed 1 October 2022) Virginia Edgecombe The Ven. Keith James Kandara Kammoun Susan Martin The Revd. Matthew Price The Revd. Dr Patrick Richmond Lindsey Rix Angela Robson The Rt. Revd. Dr Jane Steen The Revd. Canon Simon Stokes Patricia Temple-Crowe The Revd. Stephen Thorp The Rt. Revd. Graham Usher Thompson Zulu Diocesan Secretary (Chief Executive) Tim Sweeting Director of Finance Susan Bunting BFP FCA Registered Office Diocesan House, 109 Dereham Road, Easton, Norwich, NR9 5ES Company Registration Number 00088175 Charity Registration Number 249318 Auditor Lovewell Blake LLP, Bankside 300, Peachman Way, Broadland Business Park, Norwich, NR7 0LB Bankers Barclays Bank plc, 3 St James Court, Norwich, NR3 1RJ Insurers Ecclesiastical Insurance (Benefact Group), Benefact House, 2000 Pioneer Avenue, Gloucester Business Park, Brockworth Gloucester, GL3 4AW Solicitors Birketts LLP, Kingfisher House, 1 Gilders Way, Norwich, NR3 1UB Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham. B3 2ES Investment Advisors and Barratt and Cooke Ltd, 5/6 Opie Street, Norwich Stockbrokers NR1 3DW Abrdn, 280 Bishopsgate, London, EC2M 4AG CCLA Investment Management Limited, 80 Cheapside, London EC2V 6EE JM Finn & Co, 4 Coleman Street, London, EC2R 5TA Eskmuir Group, 8 Queen Anne Street, London, W1G 9LD

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

SUMMARY INFORMATION ABOUT THE STRUCTURE OF THE CHURCH OF ENGLAND

The Church of England is organised as two provinces; each led by an archbishop (Canterbury for the Southern Province and York for the Northern). Each province comprises of dioceses of which there are 42 in England.

Each diocese in England is divided into parishes. Each parish is overseen ecclesiastically by a parish priest if not an ‘incumbent’ (usually called a vicar or rector). From ancient times through to today, they and their bishop are responsible for the 'cure of souls' in their parish.

His Majesty the King, who is the Supreme Governor of the Church of England, appoints archbishops, bishops and deans of cathedrals on the advice of the Prime Minister. The two archbishops and 24 senior bishops sit in the House of Lords making a major contribution to Parliament's work. They are known as Lords Spiritual.

The Church of England is episcopally-led (there are some 108 bishops (including Diocesan Bishops and Assistant and Suffragan Bishops). It is governed by General Synod as its legislative and deliberative body at national level, making decisions on matters of doctrine, the holding of church services and relations with other churches. General Synod passes measures which, if accepted by Parliament, have the effect of Acts of Parliament. It is made up of three groups or houses of members: the Houses of Bishops, of Clergy and of Laity, and meets in London or York at least twice annually to consider legislation for the broader good of the Church.

The National Church Institutions

There are seven national administrative bodies that work together to support the mission and ministries of the Church. These are called National Church Institutions (NCIs).

The Archbishops' Council was established in 1999 to co-ordinate, promote, aid and further the mission of the Church of England . Its task is to give a clear sense of direction to the Church nationally and support the Church locally by acting as a policy discussion forum.

The Church Commissioners manage the historic assets of the Church of England, today spending most of their income on pensions for the clergy. The costs of episcopal administration through the diocesan and suffragan bishops are met by the Church Commissioners.

The Church of England Pensions Board was established by the Church Assembly in 1926 as the Church of England's pensions authority and to administer the pension scheme for the clergy. Subsequently it has been given wider powers, in respect of discretionary benefits and accommodation both for those retired from stipendiary ministry and for widow(er)s of those who have served in that ministry, and to administer pension schemes for lay employees of Church organisations.

The Pensions Board, which reports to the General Synod, is trustee of a number of pension funds and charitable funds. Whilst the Church has drawn together under the Board its central responsibilities for retirement welfare, the Board works in close cooperation both with the Archbishops' Council and with the Church Commissioners.

Lambeth Palace is the NCI accommodating the home and office of the Archbishop of Canterbury.

Bishopthorpe Palace is the NCI accommodating the home and office of the Archbishop of York.

The National Society for Promoting Religious Education is the Education Department for the Church of England.

The Church of England Central Services look after the national HR, Finances and Resources, IT, Legal, Communications, and Record Centre.

The Cathedral

The Cathedral is the mother church of the diocese and legally is constituted as a separate charity. Copies of its trustees’ report and financial statements may be obtained from the Cathedral Office, the Cathedral, Norwich.

The information about General Synod, the Church Commissioners, the Archbishops’ Council, the other NCI’s and Norwich Cathedral is included as background only. The financial transactions of these bodies do not form part of these financial statements.

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

SUMMARY INFORMATION ABOUT THE STRUCTURE OF THE CHURCH OF ENGLAND (continued)

The Diocese

Diocesan Synod

The statutory governing body of the diocese is the diocesan synod which is elected with representation from across the diocese. The Synod has broadly equal numbers of clergy and lay people meeting together in Diocesan Synod with the diocesan bishops and archdeacons. Its role is to:

Deanery Synod

Deanery Synod has two houses, laity and clergy, and its role is to:

The Bishop’s Council

Under the constitution of the Diocesan Synod, Bishop’s Council (now a function of the Bishop’s Council of Trustees) has the following functions:

Parochial Church Council (PCC)

The PCC is the elected governing body of an individual parish which - broadly - is the smallest pastoral area in the Church of England. Typically, each parish has one parish church. The PCC is made up of the incumbent as chair, the churchwardens and a number of elected and ex officio members. Each PCC is a corporate charity, and all those not exceeding £100,000 annual gross income are currently excepted from registration with the Charity Commission. Except where shown, the transactions of PCCs do not form part of these financial statements. Financial statements of an individual PCC can be obtained from the relevant PCC treasurer.

Parishes

A benefice is a parish or group of parishes served by an incumbent in holy orders who as such is a Church beneficiary and typically receives a stipend and the benefit of free occupation and use of a parsonage house at the behest of the Bishop for the purpose of carrying out specified spiritual duties.

A deanery is a group of parishes over which a rural dean has oversight, and an archdeaconry is a group of deaneries for which an archdeacon is responsible. The diocese is then the principal pastoral and, by means of its Board of Finance, financial and administrative resource of the Church of England, encompassing the various archdeaconries under the spiritual leadership of the Diocesan Bishop.

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2022

Introduction

The finances of the diocese have shown a pleasing improvement in 2022, particularly when set in the context of continuing post-pandemic challenges, widely reported census data and cost-of-living constraints. As ever, we remain cautious in relation to the future, but equally determined to ensure that resources are judiciously applied to enable churches to flourish across the diocese as we deliver the vision and priorities approved by Diocesan Synod last autumn.

Income and expenditure

You will see from the accounts that in 2022 the Diocese received a total of £6.678m in Parish Share, 84.4% of the amount requested. Whilst this is a decrease of £408,404 or 5.76% compared to pre-pandemic receipts of 2019, and £1.236m less than the requested amount, it is an increase when compared to receipts in 2021 of £157,766 or 2.42%, a wonderful achievement.

The cost-of-living crisis, together with the continued legacy of the COVID-19 pandemic had an impact on our parish incomes and expenditure. The tremendous effort that goes into raising the funds to pay Parish Share is very much appreciated.

The Diocesan financial statements are complex and include the consolidation of trading subsidiaries, large yearend pension revaluations, a revaluation of glebe land and stock market movements. This makes it difficult to see the true operating position. We have therefore included a summary on page 7 in the appendix to this report which shows that the operating deficit for 2022 excluding year end pension scheme revaluations, movement in stock market valuations, revaluation of glebe land, property sales, subsidiary company results and designated sustainability funds, is £50k (2021: £520k).

We have worked hard to put the finances of the Diocese on a sustainable footing, but I must urge some caution when looking at the operating results. I highlight the following:

During the year, Spire Support Services and our other trading subsidiaries, NDBF (Easton) Limited and Norwich Glebe Property Limited, made trading surpluses. Details are in note 33 on page 45 of these statements. The three companies were formed to provide alternative sources of income for the Diocese and to relieve the pressure on Parish Share. The surpluses will be transferred to the Diocese under the corporate gift aid scheme. During 2023 we plan to focus attention on Spire Support Services to ensure the company is adequately staffed and can grow in accordance with its revised business plan and increase profitability.

We have reviewed investment policies and strategies to maximise income, including a full review of our investment advisors by way of tender process. This will result in a restructured portfolio, with the aim of achieving better investment returns and relieving the pressure on Parish Share.

A review of the Diocese’s residential property was initiated in the year, mindful that a large proportion of our housing stock was becoming more expensive to live in, impacting the wellbeing of our clergy. This project, which will include a large programme of improvements, will also seek to reduce our long-term maintenance costs and support the Church of England’s intention to achieve Net Zero Carbon by 2030.

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2022

Assets and liabilities

After revaluation at the end of 2021, the national clergy pension scheme was showing a surplus of £560m. This removes the liability position shown on our balance sheet in 2021 of £293k. An independent actuary valued the staff pension scheme (which was closed to new members in 2001), at £1.635m, an increase of £1.164m in its value on the balance sheet. This is not a cash asset, and the Pension Scheme Trustees are currently seeking professional advice on the finances of the scheme. Full details of the pension costs are shown in note 28, on pages 40 to 43 below.

These large adjustments in our financial statements are required by accounting regulations and can be seen in the summary on page 7 of this report.

The value of net assets at 31 December 2022, excluding the contribution from trading subsidiaries, is set out on page 22 and amounts to £160.2k. The increase of £10.9m relates mainly to an increase of £10m in the value of our glebe land and the revaluation of the closed staff pension scheme. It is important to remember that these are not cash assets.

The summary on page 7 also shows the realised gains on the disposal of properties of £1,027k, being the difference between the frozen values reflected on our balance sheet and the proceeds of sale. It arises from the sale of five properties. In addition, we purchased three properties and these movements are reflected on the balance sheet.

Financial Strategy

A sub-group of the Finance Committee has recently met to consider a framework for high-level strategy for the Norwich Diocesan Board of Finance Limited for the coming years. This will be presented to the Bishop’s Council of Trustees and will include the approach to the use of the unapplied total return on investments. We anticipate that it will partly support delivery of the Vision and Priorities and the core budget as we embark on a number of major projects.

Parish Giving Scheme and Digital Rollout

We launched the Parish Giving Scheme in our Diocese early in 2022 and I again commend this to all parishes. At the end of 2022, PCCs in 82 parishes had resolved to offer the Parish Giving Scheme to their congregation and wider community. The national scheme to support stewardship is now used in over three-quarters of dioceses and has an established reputation for enabling parishes to achieve greater financial security through annual income growth as well as supporting parish treasurers.

The Diocese successfully bid to be part of the National Churches Digital Rollout taking place in 2023. We have been awarded 70 contactless giving machines which will be in place in parishes by July 2023.

Parish Statistics and Financial Data

We are reviewing the ways in which we collect and use data across the Diocese. This will include how we use and communicate the data collected nationally for our Diocese. It includes finance, mission, ministry, census, energy footprint and Net Zero Carbon as well as special data for mapping. I am keen that our parishes, benefices and deaneries know how to use and access their data to help them in planning and decision making.

Thanks

The pleasing improvement in the Diocese’s finances in 2022 is the result of a huge collective effort across the Diocese. On behalf of the Trustees, I pay tribute to the Parish Support Team for their enormous dedication and hard work, together with the skills they bring to support our parishes. We are also deeply grateful to all those who give their time so generously to serve on the various committees of the Diocesan Board of Finance. It is much appreciated.

MARK JEFFRIES

20 May 2023

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

APPENDIX TO CHAIRMAN'S STATEMENT IN ANNUAL REPORT 2022

The table below summarises the main features of the year and my explanation of them. The figures are extracted from note 37 on page 48 of the financial statements and are prior to the consolidation of Subsidiaries.

Board
2022
£'000
Income
12,008
Expenditure
(11,437)
Operating surplus
571
Realised gains on sale of properties
- Board
1,027
Net income
1,598
Adjustment of value linked loans
(26)
Actuarial gain on defined benefit pension scheme
1,036
Gains on investment assets:
Sale of glebe property (realised gains)
878
Revaluation of glebe holding
10,001
Quoted and unquoted investments
Realised
(276)
Unrealised
(2,278)
Increase in funds
10,933
Reconciliation of Management accounts operating position
Net income (shown above)
1,598
FRS102 Pension disclosure - Clergy Scheme
(167)
FRS102 Pension disclosure - Company Scheme
(254)
Transfer of funds CPR project
-
Designation of sustainability funds to 2023
(200)
Realised gains on sale of properties
- Board
(1,027)
Operating deficit
(50)		 Board
2021
£'000
12,386
(11,872)
514
927
1,441
(37)
153
38
-
105
2,025
3,725
1,441
(303)
(231)
(500)
-
(927)
(520)		 Variances
£'000
(378)
435
57
100
157
11
883
840
10,001
(381)
(4,303)
7,208
157
136
(23)
500
(200)
(100)
470

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees’ who are also directors for the purposes of company law, present their combined trustees’ and directors’ report and strategic report together with the audited financial statements, for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Objectives

Norwich Diocesan Board of Finance Limited aims to promote, facilitate and assist with the work and purposes of the Church of England for the advancement of the Christian faith in the Diocese of Norwich and elsewhere, providing resources for Ministry and Mission. These activities have been undertaken during the year and there have been no significant changes in its policies.

Structure, governance and management

The Diocese of Norwich was founded in 1094 and took broadly its present form in 1906. It covers an area of 1,804 square miles. The approximate population is 923,000 and the demographics are as follows: the diocese is the 8[th] largest in England in geographical area but only 33[rd] in terms of density of population. The city of Norwich (total population around 144,000) is the area’s key centre of economic activity. Apart from Norwich there are four other significant conurbations which spread around the periphery: Kings Lynn, Great Yarmouth, Lowestoft and Thetford. The rural areas contain a scattered population living in communities ranging from market towns (of which Norfolk has many, most of them growing) to smaller villages and remote hamlets.

The Diocese is arranged in three archdeaconries being Norwich, Thetford and Lynn. In total there are some 570 parishes and 650 church buildings.

Diocesan governance

The Diocese is governed by Standing Orders approved by Diocesan Synod. Its statutory governing body is the Diocesan Synod, which is an elected body with representation from all parts of the Diocese. Membership consists of ex officio members, including the Bishops and Archdeacons, clergy members elected by the houses of clergy in Deanery Synods, lay members elected by the house of laity in Deanery Synods, up to five persons who may be coopted by the house of clergy or the house of laity and a maximum of ten members nominated by the Diocesan Bishop. The Diocesan Synod normally meets three times a year. Many of Diocesan Synod’s responsibilities have been delegated to the Standing Committee which is the Bishop’s Council.

Company status

The company, Norwich Diocesan Board of Finance Limited, is established to manage the financial affairs, and hold legal title to the assets, of the Diocese of Norwich. It was incorporated on 28 March 1906 as a charitable company limited by membership guarantee (No. 00088175), and its governing documents are the Memorandum and Articles of Association (as amended on 28 April 1970, 5 May 1970, 19 June 2010 and 10 June 2017). Norwich Diocesan Board of Finance Limited is registered with the Charity Commission (No. 249318).

Every member of Diocesan Synod is a member of Norwich Diocesan Board of Finance Limited for company law purposes and has a personal liability limited to £1 under their guarantee as company members in the event of its being wound up.

Decision-making structure

Within the supervisory powers of the Diocesan Synod certain diocesan functions are now undertaken by the Bishop’s Council of Trustees acting as the Bishop’s Council, the Executive Committee, the Diocesan Mission and Pastoral Committee and the Parsonage Board.

The Bishop’s Council is the Standing Committee of Diocesan Synod and its functions are listed on page 4.

The Executive Committee act as Trustees’ and are also directors for the purposes of company law, their functions in pursuit of Norwich Diocesan Board of Finance Limited’s charitable objects are:

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Structure, governance and management (continued)

The Diocesan Mission and Pastoral Committee , is responsible for the review of ministry deployment which may include pastoral reorganisation, sharing agreements or mission planning, taking account of finance, clergy numbers and new patterns of ministry. The Committee advises the Bishop and Diocesan Synod on proposed strategy. It is also responsible for church buildings other than matters for the consistory court or the work of the Diocesan Advisory Committee for the Care of Churches.

The Bishop’s Council of Trustees, acts as the Parsonages Board and provides for the responsibilities of the board to be undertaken by a committee known as the Property Committee.

The Bishop’s Council of Trustees has delegated responsibility for the day-to-day management of the Board to the Diocesan Secretary who is supported by a senior management team and their staff.

All members of the Bishop’s Council of Trustees give their time voluntarily and receive no benefits from the Board. During the year Norwich Diocesan Board of Finance Limited made payments to the Archbishops’ Council for stipends, national insurance and pension contributions of the licensed clergy who are Trustees and provided houses, including the payment of council tax and maintenance costs, as part of normal clergy remuneration.

Committee structure

Those that follow are statutory committees:

Glebe Committee , is responsible for overseeing policy and making major decisions concerning the management of glebe property and investments for the benefit of the Diocesan Stipends Fund of the Diocese of Norwich.

Diocesan Advisory Committee , advises the Chancellor on matters affecting churches and places of worship such as the granting of faculties, architecture, archaeology, art and the history of places of worship, the use and care of places of worship and their contents and the care of churchyards.

The Board of Education, is established under the Diocesan Boards of Education Measure 2021. Its functions include: the promotion of education consistent with the faith and practice of the Church of England; the promotion of religious education and religious worship in schools and academies; the promotion of Church schools and academies in the diocese; and advice to school governors on any matter affecting Church schools and academies.

The Board of Patronage is constituted under Schedule 3 of the Patronage (Benefices) Measure 1986. The exercise of Patronage, i.e., the right to present a priest to a benefice, is an historic foundation element of the Church of England carried over from the pre-Reformation Church. Today it forms part of a system of checks and balances which ensures the continuance of a broad spectrum of belief and practice within that Church, not least traditional orthodoxy.

The Vacancy in See Committee, the requirement for, and role, functions and constitution of, a diocesan Vacancy in See Committee is set out in the Vacancy in See Regulation 1993 (as amended). It only meets when the post of diocesan bishop is vacant.

In addition to the statutory committees, currently there are also the following committees:

Agenda Planning Group, sets the agenda for the Bishop’s Council of Trustees and produces a draft agenda for Diocesan Synod for the Bishop’s Council of Trustees to approve.

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Structure, governance and management (continued)

Asset Management Committee, brings together matters to do with diocesan property, investments and Glebe, including strategic development proposals. It takes an integrated approach to maximise the effective management and growth of all types of diocesan assets.

Audit Risk and Assurance Committee, reviews the work, policies and procedures of the Board, to ensure integrity in all its activities, and compliance with legal, financial and reporting requirements, and to have oversight of risk management processes.

Finance Committee, has delegated responsibility for much of the work of the Executive Committee. It is responsible for developing a financial policy and strategy for the Diocese for approval by the Bishop’s Council of Trustees.

Nominations Committee, makes recommendations to the Bishop’s Council of Trustees for the appointment of candidates for non-elected membership of the Diocesan Synod, the Bishop’s Council of Trustees, and other committees of the Diocese of Norwich. It also approves, on behalf of the Bishop’s Council of Trustees, a number of specific appointments, namely the Diocesan Secretary, staff at Director level, and the Chairs of some of the boards and committees

Property Committee, undertakes the responsibilities and work of the Parsonages Board. This includes provision, maintenance, upkeep and improvement of Parsonage houses; considerations (in consultation with the Asset Management Committee) of acquisition and disposal or exchange of Parsonage houses and letting such houses during vacancies. The Committee also deals with corporate property.

Remuneration Committee, makes recommendations to the Bishop’s Council of Trustees, for remuneration of stipendiary clergy licensed in the Diocese of Norwich, and of staff employed by the Norwich Diocesan Board of Finance Limited and its subsidiaries.

Safeguarding Advisory Panel, provides a source of independent advice and expertise on safeguarding policies, procedures and practices to the diocesan bishop and other senior clergy and officials, and ensures the implementation of the current House of Bishops’ policy and practice guidance.

Recruitment and appointment of Trustees

The Bishop’s Council of Trustees members listed on page 2 are the directors of the company for the purposes of company law and in accordance with the Articles of Association shall be the following persons:

Induction and training of Trustees

The Trustees are aware of the 2011 Charities Act requirement to ensure that all members receive appropriate induction and training. Periodically members attend talks on charity governance.

Remuneration of key management personnel

Emoluments of higher paid personnel, including the Diocesan Secretary, are determined by the Remuneration Committee. All employees including key management personnel have regular appraisals and remuneration is based on salary scales which are regularly benchmarked and reviewed.

Related parties/Connected charities

Norwich Diocesan Board of Finance Limited has to comply with Measures passed by the General Synod of the Church of England and is required to make certain annual payments to the Archbishops’ Council towards the running costs of the National Church. The stipends of the Diocesan and Area Bishops are borne by the Church Commissioners.

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Structure, governance and management (continued)

In pursuit of its charitable objectives, the Board acts as agent for a number of Diocesan Boards including the Board of Education.

The Diocese of Norwich Education and Academies Trust, St Benet’s Multi-Academy Trust and The Diocese of Norwich Education Support Company are connected charities/companies of the Norwich Diocesan Board of Finance Limited. Church academies have a clause written into their funding agreements which requires the Academy Trust to ensure that the quality of Religious Education and the contents of the Academy's collective worship are given in accordance with the tenets and practice of the Church of England.

The Diocese of Norwich Churches Trust was established during 2015 and is a connected charity of the Norwich Diocesan Board of Finance Ltd. This is a Charitable Incorporated Organisation (CIO) set up to relieve incumbents and PCC members with very small congregations, from the burden and responsibility of the Churches running costs, this became active during 2017.

In addition, the Board acts as managing or custodian trustee for approximately 1,800 Parish and other religious trusts which hold property and investments. All trust assets are recorded and maintained separately from the Board’s own assets. It also co-operates with and provides advice to Parochial Church Councils, the Chapter of Norwich Cathedral, the Horstead Centre and other church bodies.

The Board is required by Measure to be custodian trustee in relation to Parochial Church Council property, but has no control over Parochial Church Councils, which are independent charities. The accounts of Parochial Church Councils and deaneries do not form part of these financial statements.

Parochial Church Councils are able to influence the decision-making within Norwich Diocesan Board of Finance Limited and at Diocesan Synod level through representations to those bodies and through the input of their Deanery Synods.

Pension scheme

Norwich Diocesan Board of Finance Limited is the sponsoring employer of the Norwich Diocesan Board of Finance Pension Scheme. This is a pension fund for the benefit of employees of Norwich Diocesan Board of Finance Limited. One trustee of the scheme is an employee of the Board and member of the scheme. The scheme has been closed to new entrants. Costs of administration and secretarial services are currently borne by the Board.

The Board also participates in the Church of England Funded Pension Scheme. Further details are contained in note 28 to the financial statements.

Subsidiary undertakings

The Board’s subsidiaries are considered to be The Diocese of Norwich Consolidated Education Endowments (formerly Schemes under Section 554 of the Education Act 1996) and certain trusts over which the Board has absolute discretionary control and of which it is a beneficiary. The Board has three trading subsidiaries, Spire Support Services Limited, Norwich Glebe Property Limited and NDBF Easton Limited (see note 33).

Strategic Report - Key performance indicators are shown in the relevant sections of this report.

a) Activities, Benefits and Achievements

Norwich Diocesan Board of Finance Limited’s strategy for achieving its objectives is to maintain the sound financial structure needed to enable it to continue supporting the clergy through the payment of stipends, managing parsonages and other ministerial housing and also by providing other facilities and resources in support of the ministry of both clergy and lay people across the Diocese.

The key activities may be summarised as:

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Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

a) Activities, Benefits and Achievements (continued)

Public benefit

The Trustees are aware of the Charity Commission’s guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Board. The Trustees believes that, by promoting the work of the Church of England in the Diocese of Norwich, the Board helps to promote the whole mission of the Church (pastoral, evangelistic, social and ecumenical) more effectively, both in the diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public.

Norwich Diocesan Board of Finance Limited supports the clergy through the payment of stipends, the management of parsonages, and clergy training. This provides a benefit to members of the general public in each parish. The Church also carries out marriages, baptisms and funerals which are attended by the general public and enriches local communities by the provision of other services across the Diocese.

The Board of Education provides support services and capital expenditure support for schools and academies, thus benefiting the pupils, and the improvement of the buildings benefits the local community.

Norwich Diocesan Board of Finance Limited also makes grants to connected charities and to other charitable projects in support of the above objectives.

The benefits outlined above are related to the aims of the Diocese in helping to promote, carry on and assist the work of the Church of England in the Diocese of Norwich and elsewhere, providing resources for Ministry and Mission. They also relate to a large section of the general public whose opportunity to benefit is not unreasonably affected by geographical or financial restrictions.

Achievements and performance

Plans and achievements for 2022

The Cost-of-living crisis, together with the continued legacy of the COVID-19 pandemic had an impact on finances during 2022, for both the Norwich Diocesan Board of Finance Ltd and our parish incomes and expenditure. This in turn has impacted on the ability to pay parish share.

The financial impact on Norwich Diocesan Board of Finance Ltd improved when compared to 2021 and we have seen an increase in parish share income during 2022. However, when compared with pre-pandemic levels this still shows a significant decrease (see later operational performance on page 13). In 2021, the Trustees instructed a review of central services, carried out by two external consultants. This led to reductions in diocesan lay staff through redundancy, restructuring roles and not replacing those that had left. However, during 2022 there were staff vacancies which have led to a temporary reduction in expenditure. These vacancies were filled during 2022 and therefore the temporary expenditure savings will not continue.

A review of clergy deployment and expenditure was led by the Bishop of Thetford at the end of 2020/beginning of 2021. This has been implemented, leading to 15 stipendiary clergy posts not being replaced. However, we are also carrying unplanned vacancies of approximately 11 posts below budget, which again has led to a temporary reduction in expenditure, which will not continue as the posts are filled.

Achievements during the year were:

12

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Achievements and performance (continued)

Operational performance

Norwich Diocesan Board of Finance Limited received 84.4% of parish share requested for the year of £7.914m, a shortfall of £1.236m. This is an increase of £158k or 2.42% when compared with 2021 receipts.

The operating deficit at company level for 2022 is £50k (after adjusting for FRS102 pension adjustments, nonoperational property surpluses and the designation of Sustainability funds, see page 7).

There were unplanned staff vacancies during 2022 which have artificially reduced costs. These posts are now filled and the savings will not continue. Additionally, there were unplanned clergy vacancies, which when the posts are filled, will increase costs.

Other steps taken to mitigate the level of deficit were:

Investment performance – overall performance

The overall value of Diocesan investment assets increased by £6,467,000 during 2022, as compared with an increase of £2,162,000 in 2021. The increase in 2022 related to an increase in Glebe land of £9,943,000, mainly due to revaluation, and a decrease in equity and fixed interest funds of £3,476,000.

In 2022 the operational activities of the Diocese were financed by £726,000 from interest and dividends (2021: £655,000).

Glebe investments

£47 million of the Board’s investments are in glebe land, primarily to generate a sustainable income to continue funding clergy stipends. The Glebe land, which is considered to be investment property, was revalued by FPD Savills, Property Consultants, at its estimated open market value as at 31 December 2022 and resulted in an increase in value of £10 million. This valuation, which represents an average £8,146 per acre, will be updated every five years. Rents receivable amounted to £808,000 (2021: £796,000).

Investment in equity and fixed interest funds were valued at £10.1 million at 31 December 2022 (2021: £12 million) The unrealised loss in the value of investments during the year amounted to £1,352,000 (2021: unrealised gain £1,239,000). Dividends and interest receivable amounted to £413,000 (2021: £395,000).

General and other fund investments

Other investments are held on behalf of restricted and general funds. The policy with these investments is to safeguard capital and to achieve capital growth. Investment in equity and fixed interest funds were valued at £7.4 million at 31 December 2022 (2021: £9.1 million), a decrease of £1.7m or 18.7%. Dividends and interest receivable amounted to £313,000 (2021: £238,000).

Value linked loans

As detailed in note 18, freehold property subject to value linked loans comprises freeholds where loans have been received from Church Commissioners or Parochial Church Councils towards the capital expenditure and as part of the agreement all or part of the sale proceeds are repayable on final disposal. The Board is committed to repay the outstanding value linked loans in the short term as funds become available. Total value linked loans at 31 December 2022 were £416,000 (2021: £390,000).

13

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Achievements and performance (continued)

Statutory functions

Norwich Diocesan Board of Finance Limited has responsibility for the management of glebe property and investments to generate income to support the cost of stipends. It is the Diocesan authority for parochial and other trusts and incorporates the functions and responsibilities of the Diocesan Parsonages Board. The trustees are custodian trustees in relation to PCC property.

Grant-making (beneficiary-selection) policy

Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry. Grants are paid to other connected charities and to other charitable projects which appear to the Board to support the furtherance of Norwich Diocesan Board of Finance Limited’s objects.

Volunteers

Norwich Diocesan Board of Finance Limited is dependent on the huge number of people involved in church activities both locally and at diocesan level. We believe that the number of active volunteers (or volunteer hours) given to the mission and ministry of the church is a key indicator of the health of a church.

The service provided to a community through church volunteering also has a significant impact on people’s relationship to the church particularly at times of crisis. Within this context, the Trustees greatly value the considerable time given by all the volunteers across the diocese in pursuit of the mission of the Norwich Diocesan Board of Finance Limited.

b) Financial review

The results for the year shown in the Statement of Financial Activities on page 20 and the year end position shown in the balance sheet on page 23 are considered to be satisfactory. Results and highlights for the year and future prospects are given in the Chairman's Statement on pages 5 to 7.

Financial performance

Income before revaluation adjustments totalled £13.7 million (2021: £14.3 million) and expenditure amounted to £12.2 million (2021: £12.7 million).

The Statement of Financial Activities (SOFA) for the year shows net income of £1,452,000 (2021: net income £1,523,000) before net gains and losses on the revaluation of investments and fixed assets and on the sale of investment assets, and actuarial losses on the defined benefit pension scheme.

The accounts show an increase in the balance sheet total of £10,660,000.

During the year, total fund balances increased to £162.2 million.

Principal funding sources

Around 56% of the income of the Board comes from the Parish Share, 17% from Archbishops’ Council for Low Income Communities (LINC), transition funding and other grants,13% from investment income (including glebe rent), and 5% from statutory fees.

Going concern

After making enquiries the Trustees are satisfied that Norwich Diocesan Board of Finance Limited has adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis.

Investment policy

The Board’s aim is to gain the best return from their assets to help sustain the ministry of the Church, without undue risk. Their portfolio includes fixed interest, bank and stock market investments, freehold properties and glebe land.

The Trustees have delegated the functions and duties in relation to Investment Management to the Asset Management Committee.

14

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Financial review (continued)

Investment policy (continued)

The members of the Asset Management Committee are appointed by the Bishop’s Council of Trustees and are made up of the Chairs of the Board of Finance, Property Committee, Glebe Committee, a member of Bishop’s Staff, two people agreed by the Nominations Committee, qualified by ability and practical experience in matters relating to investments and up to two others co-opted when required, in consultation with the Nominations Committee. The members of the Asset Management Committee are guided by the best practice advice issued by the Charity Commission for the investment of Charitable Funds.

The Board’s investment policies were reviewed during 2022 and include the following key policies:

Long-term responsibilities and growth – the Trustees are aware of their long-term responsibilities and as a result follow a correspondingly prudent approach to investment decisions. Investment policy for long term funds is aimed primarily at generating a sustainable income with due regard to the need for the preservation of capital value and the possible need to realise investments to meet operational needs.

Glebe investments are held for the purpose of raising income to achieve the maximum contribution possible to clergy stipends on an on-going basis. The overarching investment objective is to at least maintain the real value of assets whilst generating a return sufficient to finance annual expenditure in the region of 3.0% after expenses. To achieve this, the investment portfolio has a target return of CPI+3.5%. The Diocese will adopt a total return approach to investment under the Diocesan Stipends fund (Amendment) Measure 2016, generating the investment return from income and capital growth (or losses). It is expected that if in any one year the total return is insufficient to meet the budgeted expenditure, in the long term the real value of the assets will be maintained in accordance with the objective above.

Responsible investment – the Trustees adopt a responsible investment policy that follows the Church of England Ethical Investment Advisory Group (EIAG) guidelines, this includes ensuring that investments are held in companies which have high standards of corporate governance and act in a responsible way towards stakeholders. In accordance with the directions od Diocesan Synod investment in fossil fuel companies is excluded from the portfolio.

Reserves policy

Norwich Diocesan Board of Finance Limited has considerable responsibilities including the remuneration of up to 160 parochial stipendiary clergy, the upkeep of approximately 260 houses, and the employment of 45 (f.t.e) full or part time staff, and it is therefore essential that the Board carries an appropriate level of reserves to meet these responsibilities.

The free reserves of the Board at 31 December 2022, comprising the income funds freely available for general purposes (and which are not yet spent, committed or restricted) amounted to £5.9 million as compared with £6.2 million at the end of the previous year. Free reserves include free designated reserves of £338,000. Stock market values are volatile as they react to worldwide situations. The Trustees do not consider it necessary to make plans to spend additional reserves due to the volatility of the markets.

The Trustees have reviewed the reserves policy and recommend that the free reserves are approximately £4 million being four and a half months expenditure within the Capital and General fund and designated funds, including future stipend payments.

As stated in note 27, the Diocesan Secretary is sanctioned by the Bishop of Norwich to use monies from the Benefice Buildings and Pastoral Fund - this is mainly called upon when there are insufficient resources within the General Fund. The Benefice Building and Pastoral Fund is regarded as an expendable endowment (a restricted fund). The investments and net current assets within this fund at 31 December 2022 amounted to £4.4 million (2021: £4 million). Total other restricted funds excluding tangible assets and long-term liabilities but including Glebe land at 31 December 2022 amounted to £63 million (2021: £54 million).

The Board of Finance has sufficient reserves to conclude that going concern is not an immediate concern but the Trustees recognise that the activities of the Board of Finance must be continually reviewed.

15

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Financial review (continued)

c) Plans for the future

d) Principal Risks and Uncertainties

The Trustees confirm that the major risks to which Norwich Diocesan Board of Finance Limited is exposed, as identified by the Trustees and staff, have been reviewed and that systems and procedures have been established to manage those risks. Risks are reviewed and managed as part of the risk management strategy.

A risk register is compiled covering potential governance and management risks, operational risks, financial risks, environmental/external risks, and compliance risks. Potential risks are explained with their likely impact, and procedures to mitigate the risks are listed. The register and implementation processes are currently being reviewed. The Trustees review the risk register at least annually as part of the risk management strategy.

The most significant and major financial risk facing the charity remains the shortfall in donations from parishes to the Parish Share as this is the main contribution received to fund the work of the Board. Work continues on financial strategy and an affordable plan for the delivery of the charity’s main objectives in the long term.

A key element in the management of financial risk is the setting of a reserves policy and its regular review by the Trustees.

Funds held as custodian trustee for others

The Board is custodian trustee for approximately 1,800 Parish and other religious trusts which hold property and investments. The Board also holds Parochial Church Council property as custodian trustee. Each PCC is a separate charity and the assets are held separately from those of Norwich Diocesan Board of Finance Limited.

Fixed Assets

The movements in fixed assets are set out in notes 18 to 20 in the accounts. All of the Board’s properties were revalued at 31 December 2012 in accordance with the Board’s accounting policy at that time, of re-valuing every five years.

The Board has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The Board is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their preexisting balance sheet revaluation as deemed cost. No further revaluations will be performed on these assets.

The Glebe holdings were revalued as at 31 December 2022, in accordance with the policy set out on page 29. Glebe land was valued by FPD Savills, Property Consultants, at market value at 31 December 2022.

16

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022- continued

Fundraising standards information

The Board supports raising funds from the public in relation to the annual Lent appeal. No professional fundraisers or third-party commercial participators are used. The Board is registered with the Fundraising Regulator.

No direct contact is made with the public regarding fundraising activities. All advertising is carried out via Diocesan publications, social media or websites. No complaints were received regarding fundraising activities.

Statement of Trustees’ Responsibilities

The Bishop’s Council of Trustees (acting as the Executive Committee) who are also directors of Norwich Diocesan Board of Finance Limited for the purposes of company law, are responsible for preparing the Trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for the year. In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the Bishop’s Council of Trustees

Members of the Bishop’ Council of Trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 2. The Ven. Catherine Dobson was appointed on 1 October 2022. The Very Revd. Dr Andrew Braddock was appointed on 28 January 2023. Captain Anthony Poulter OBE RN resigned on 10 March 2023. The Rt. Revd Dr Alan Winton resigned on 30 April 2023.

Auditor

A resolution to re-appoint Lovewell Blake LLP as auditor of the Board will be proposed at the Annual General Meeting on 21 June 2023.

The Trustees’ report (incorporating Strategic Report) was approved by the Board on 20 May 2023. Signed by Order of the Board

TIM SWEETING, Secretary

17

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORWICH DIOCESAN BOARD OF FINANCE LIMITED

Opinion

We have audited the financial statements of The Norwich Diocesan Board of Finance Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and the Parent Charitable Company Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ 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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

18

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

INDEPENDENT AUDITOR’S REPORT (continued)

Trustees’ Responsibilities

As explained more fully in the Trustees’ Responsibilities Statement (set out on page 17), the Trustees (who are also the directors of the parent 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 groups and parent 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 group or parent 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

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 non-compliance. 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors responsibilities. 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.

Mark Proctor FCA DChA (Senior Statutory Auditor) For and on behalf of LOVEWELL BLAKE LLP Chartered Accountants & Statutory Auditor Bankside 300, Peachman Way, Broadland Business Park, Norwich, Norfolk NR7 0LB

Lovewell Blake LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

20 May 2023

19

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2022

*** Restricted Funds** *** Restricted Funds** *
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Note Funds & Pastoral Fund Funds 2022 2021
£'000 £'000 £'000 £'000 £'000 £'000
Income and endowments from
Donations 2
Parish contributions 6,678 - - - 6,678 6,520
Archbishops' Council 415 - 1,251 428 2,094 2,034
Other donations 295 - - 2 297 938
Charitable activities 3 835 1 2 - 838 864
Other activities 4 588 3 - 607 1,198 1,543
Investments 5 124 165 1,221 24 1,534 1,451
Other sources 6 - 1,027 - 15 1,042 928
Total income 8,935 1,196 2,474 1,076 13,681 14,278
Expenditure on
Raising funds 7 - - 134 707 841 1,011
Charitable activities 8 8,669 8 2,099 612 11,388 11,744
Total expenditure 8,669 8 2,233 1,319 12,229 12,755
Net income/(expenditure) before
investment gains 266 1,188 241 (243) 1,452 1,523
Net gains on investments 13 (327) (704) 9,356 (127) 8,198 2,258
Net income/(expenditure) 14 (61) 484 9,597 (370) 9,650 3,781
Transfers between funds 15 (1) - - 1 - -
Other recognised gains/(losses)
Adjustment of value linked loans 26 (26) - - - (26) (37)
Actuarial gain on defined benefit
pension scheme 28 910 - 126 - 1,036 153
Net movement in funds 822 484 9,723 (369) 10,660 3,897
Reconciliation of funds
Total funds at 1 January 2022 9,922 82,308 56,392 2,944 151,566 147,669
Total funds at 31 December 2022 10,744 82,792 66,115 2,575 162,226 151,566

The fund-analysis of the comparative figures is shown in note 36 to the accounts.

The notes on pages 25 to 48 form part of these accounts.

20

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2022

Total income (note 1 below)
Expenditure
Operating surplus for the year
Interest receivable
Net gains on investment assets
Surplus for the year
Other comprehensive income:
Revaluation of fixed assets
Net assets transferred from endowments
Defined benefit scheme actuarial gains/(losses)
Total comprehensive income for the year		 2022
£'000
12,621
(12,229)
392
33
8,198
8,623
(26)
1,027
1,036
10,660		 2021
£'000
13,345
(12,755)
590
5
2,258
2,853
(37)
928
153
3,897

All income and expenditure relates to continuing activities

Total income comprises £8,906,000 for unrestricted funds and £3,715,000 for restricted funds, including subsidiaries and quasi subsidiaries. A detailed analysis of income by source is provided in the Statement of Financial Activities and notes 2 to 6 to the accounts. Detailed analysis of the expenditure is provided in the Statement of Financial Activities and notes 7 to 12 to the accounts.

The net surplus for the year of £8,634,000 comprises £61,000 net deficit of Unrestricted Funds and £8,695,000 net surplus of Restricted Funds.

The summary income and expenditure account is derived from the Statement of Financial Activities on page 20, which together with the notes to the financial statements on pages 25 to 48, provides full information on the movements during the year on all the funds in the group.

All income and expenditure derives from continuing activities.

Note 1 Reconciliation of Summary Income and Expenditure to Statement of Financial Activities

Total income per page 20
Less interest receivable
Less total endowment additions
Total income per above		 2022
£'000
13,681
(33)
(1,027)
12,621		 2021
£'000
14,278
(5)
(928)
13,345

The notes on pages 25 to 48 form part of these accounts.

21

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

Company registration number: 88175

NORWICH DIOCESAN BOARD OF FINANCE LIMITED COMPANY BALANCE SHEET At 31 December 2022

Notes
Fixed Assets
Tangible assets
18
Investment assets
Glebe holding
19
Investments
20
Current Assets
Debtors
22
Pension scheme asset
28
Balances with Church
Commissioners
Central Board of Finance
Deposit Fund
Cash /(overdrawn balance) at bank
Creditors - Amounts
falling due within one year
24
Net Current Assets
Total Assets Less
current liabilities
Creditors - Amounts falling
due after more than one year
25
Net Assets excluding pension
scheme liability
Defined benefit pension scheme
liability
28
Net assets after pensions liability
Fund Balances
At 31 December 2022
27		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*2022
2021
Funds & Pastoral
Fund
Funds
Total
Total
£'000
£'000
£'000
£'000
£'000
£'000
3,638
78,390
5,875
-
87,903
87,804
-
-
47,021
-
47,021
37,023
2,305
4,363
10,139
-
16,807
20,155
5,943
82,753
63,035
-
151,731
144,982
1,474
28
263
77
1,842
2,049
1,635
-
-
-
1,635
471
-
14
-
-
14
14
166
306
-
-
472
441
3,457
424
3,037
886
7,804
4,014
6,732
772
3,300
963
11,767
6,989
1,515
733
220
462
2,930
2,069
5,217
39
3,080
501
8,837
4,920
11,160
82,792
66,115
501
160,568
149,902
416
-
-
-
416
390
10,744
82,792
66,115
501
160,152
149,512
-
-
-
-
-
293
10,744
82,792
66,115
501
160,152
149,219
10,744
82,792
66,115
501
160,152
149,219

The net movement in funds at company level was £10,933k (2021: £3,725k)

Approved by the Bishop's Council of Trustees on 20 May 2023 and signed on its behalf by

Chair

Diocesan Secretary

Mark Jeffries Tim Sweeting

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22

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

Company registration number: 88175

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED BALANCE SHEET At 31 December 2022

*** Restricted Funds** *** Restricted Funds** *
Benefice Other
Unrestricted Buildings Stipends Restricted 2022 2021
Notes Funds & Pastoral Fund Funds Total Total
£'000 £'000 £'000 £'000 £'000 £'000
Fixed Assets
Tangible assets 18 3,638 78,390 5,875 516 88,419 88,321
Investment assets
Glebe holding 19 - - 47,021 - 47,021 37,078
Investments 20 2,305 4,363 10,139 779 17,586 21,062
5,943 82,753 63,035 1,295 153,026 146,461
Current Assets
Stock 21 - - - 26 26 9
Debtors 22 1,474 28 263 301 2,066 2,789
Pension scheme asset 28 1,635 - - - 1,635 471
Balances with Church
Commissioners - 14 - - 14 14
Central Board of Finance
Deposit Fund 166 306 - 76 548 517
Cash at bank 3,457 424 3,037 3,665 10,583 7,227
Creditors- Amounts 6,732 772 3,300 4,068 14,872 11,027
falling due within one year 24 1,515 733 220 2,127 4,595 4,762
Net Current Assets 5,217 39 3,080 1,941 10,277 6,265
Total Assets Less
current liabilities 11,160 82,792 66,115 3,236 163,303 152,726
Creditors- Amounts falling
due after more than one year 25 416 - - 661 1,077 867
Net Assets excluding pension
scheme liability 10,744 82,792 66,115 2,575 162,226 151,859
Defined benefit pension scheme
liability 28 - - - - - 293
Net assets after pension liability 10,744 82,792 66,115 2,575 162,226 151,566
Fund Balances
At 31 December 2022 (page 20) 27 10,744 82,792 66,115 2,575 162,226 151,566

Approved by the Bishop's Council of Trustees on 20 May 2023 and signed on its behalf by

Chair

Diocesan Secretary

Mark Jeffries Tim Sweeting

……………………..

……………………..

23

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2022

Net cash (outflow) from operating activities
Cash flows from investing activities
Dividends, interest and rent from investments
Interest paid
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Loans repaid to the Board
Loans repaid by the Company
Net cash provided by financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at 1 January 2022
Cash and cash equivalents at 31 December 2022
Reconciliation of net income to net cash flow
from operating activities
Net income/(expenditure)
Depreciation
Interest paid
Net gain on the sale of fixed assets
Dividends, interest and rent from investments
Increase/(decrease) in stock
Decrease/(Increase) in debtors
(Decrease)/increase in creditors
FRS 102 Non-cash pension disclosures
Net cash (used in)/provided by operating activities
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Reconciliation of net cash flow to movements in net debt
Change in cash and cash equivalents in the reporting period
Cash flow from decrease in debt
Increase in net debt in the reporting period
Net debt at 1 January 2022
Net debt at 31 December 2022		 2022
£'000
(971)
1,534
(8)
2,661
(1,748)
3,937
(2,206)
4,170
4
184
188
3,387
7,758
11,145
1,452
16
8
(1,027)
(1,534)
(17)
719
(167)
(421)
(971)
10,583
562
11,145
3,387
(210)
3,177
6,891
10,068		 2021
£'000
(1,360)
1,451
(8)
3,025
(1,228)
1,743
(1,647)
3,336
-
-
-
1,976
5,782
7,758
1,523
25
8
(927)
(1,451)
16
(244)
224
(534)
(1,360)
7,227
531
7,758
1,976
(37)
1,939
4,952
6,891

24

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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 (SORP 2019), the Companies Act 2006 and applicable accounting standards (FRS102). The Board constitutes a Public benefit entity as defined by FRS102.

The principal accounting policies and estimation techniques are as follows.

a) Income

All income is included in the Statement of Financial Activities (SOFA) when the Board 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. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

25

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

1. Accounting policies (continued)

v) Pension contributions .

The Church of England Funded Pension Scheme

The Board participates in the Church of England Funded Pension Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

Each participating employer in the 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. This means it is not possible to attribute the scheme’s assets and liabilities to specific employers and that the contributions are accounted for as if the scheme were a defined contribution scheme. The pension costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions.

The Board’s Defined Benefit Scheme

The Board’s pension scheme provides benefits for other full-time staff based on final pensionable pay. This is closed to new entrants. The assets of the scheme are held separately from those of the Board, being invested with Aviva. Defined benefit pension liabilities are measured using the projected unit credit method and discounted at the valuation rate of interest on a high quality corporate bond of equivalent term and currency to the liability. Under FRS 102 it is permissible to review and update the most recent actuarial valuation results, any net liability arising based on these valuations is the best estimate of the present value of the actual amounts to be paid out of the scheme, less the market value of the scheme assets.

The increase in the present value of the liabilities of the Board’s defined benefit pension scheme expected to arise from employee service in the period is charged to the Statement of Financial Activities. The net interest on the scheme liabilities is also charged to the Statement of Financial Activities. Actuarial gains and losses are recognised in the Statement of Financial Activities.

Group Personal Pension Plan

A group personal pension scheme was set up on 1 January 2002 and the costs of providing this are charged to the Statement of Financial Activities as they become payable.

26

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

1. Accounting policies (continued)

c) Tangible fixed assets and depreciation

Freehold properties

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

Investment properties

Glebe properties which are held for investment purposes and rented out have been included at their fair value.

Parsonage houses

The Board has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The Board is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Executive Committee members therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their pre-existing balance sheet revaluation as deemed cost. No further revaluations will be performed on these assets.

Properties subject to value linked loans

Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are carried at their pre-existing balance sheet revaluation as deemed cost (see paragraph above). Each year end the loan is carried at an index linked current valuation basis.

d) Other tangible fixed assets

All capital expenditure over £1,000 is capitalised and depreciated, apart from computer software which is written off in the year of purchase. Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asset’s acquisition) of other fixed assets over their currently expected useful economic lives at the following initial rates:-

Office and other equipment 25% / 33.33% straight line Motor vehicles 25% reducing balance

e) Other accounting policies

i) Fixed asset investments

The Glebe holding, which is considered to be investment property, was revalued by FPD Savills, Property Consultants, at its estimated open market value as at 31 December 2022. This valuation, which represents an average of £8,146 per acre, is updated every five years. Details of the cost of the majority of the Glebe property is not available. Listed investments are included at their market value. Unlisted investments are included at valuations provided by the Fund Managers concerned. Subsidiary companies are included at fair value and any changes are recognised in the SOFA.

27

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

1. Accounting policies (continued)

ii) Diocesan Stipends

All stipends are paid by the Church Commissioners with funds provided by the Diocese. Allocations, guaranteed annuities and grants from the Church Commissioners, net Glebe rents and other attributable income received by the Church Commissioners are credited to the Stipends Fund.

iii) Diocesan Parsonages Fund

All transactions relating to the Diocesan Parsonages Fund are included under the appropriate headings in the Capital and General Fund column of the Board’s Statement of Financial Activities.

iv) Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

v) Debtors and Creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

vi) Cash at Bank

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

vii) The Diocese of Norwich Consolidated Education Endowments

The Diocese contributes towards the repairs and capital expenditure on schools and the costs are shown net of grants receivable. This grant system has now ceased for new projects and has been replaced by the Voluntary Aided Schools pooling arrangement. Grants shown in the Statement of Financial Activities relate to existing projects commenced under Consolidated Education Endowments.

viii) Financial Instruments

The Board only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their transaction value and then measured at their settlement value, with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

f) Fund balances

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

28

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

1. Accounting policies (continued)

f) Fund balances (continued)

Trusts where the Board acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are disclosed in the Report of the Bishop’s Council of Trustees.

Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the Parsonage House and Schools endowment funds administered by the Board, there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds such as the Stipends Capital Fund, where there is no provision for expenditure of capital are classified as permanent endowment.

g) Consolidated accounts

For the purposes of the Consolidated Statement of Financial Activities and Balance Sheet which appear alongside those of the Board itself, the Board’s subsidiaries and quasi subsidiaries are considered to be Spire Support Services Ltd, NDBF (Easton) Ltd, Norwich Glebe Property Ltd, The Diocese of Norwich Consolidated Education Endowments (formerly Schemes under Section 554 of the Education Act 1996) and certain trusts over which the Board has absolute discretionary control and of which it is a beneficiary. The results of the subsidiaries and quasi subsidiaries are consolidated on a line by line basis within ‘other restricted funds’. Intra group balances, where immaterial, are not eliminated on consolidation.

h) Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist in relation to going concern.

The Trustees have assessed the going concern risks arising from the COVID-19 pandemic, including cashflow, investment values, staffing, government support and opening places of worship. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

i) Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

j) Redundancy costs

Where an obligation to make redundancy or termination payment arises, the costs incurred by the charity are accounted for on an accruals basis and included within employee benefits.

k) Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. This includes the recognition of parish share (as per a. i) above), the recognition of pension scheme assets and liabilities (as per b. v) above), the valuation of properties (as per c. above) and the valuation of the Glebe holding (as per e. i) above).

29

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

2.
Income from Donations
Parish contributions
Parish share
Current year's allocation
Shortfall in contributions
Total income
Total parish share receipts for the current year
represent 84.4% of the allocation (2021: 82.3%)
Archbishops' Council
Lowest income communities and transition funding
Resourcing Ministerial Education
Strategic Development Funding
Sustainability funding
Strategic Capacity Funding
Strategic Ministry Funding
Grant towards PCR2 costs
Guaranteed annuities
Other donations
All Churches Trust Grant
Anne French Memorial Trust
Keswick Hall Charity
Roof Alarm Appeal
Mission Strategy
Other donations
3.
Income from Charitable activities
Statutory fees and chaplaincy income
Other Board income
Coronavirus Job retention Scheme
4.
Income from Other activities
Rental income from parsonages and closed schools
Trading income
Property support services
Sale of option Easton development
Rental income from commercial property
Income from recharged support services
5.
Income from Investments
Dividends receivable
Interest receivable
Glebe rents receivable (note 16)
6.
Other income
Gains on disposal of property
Total income		 Benefice
Other
Unrestricted
Buildings Stipends Restricted
Total Funds
Total Funds
Funds & Pastoral
Fund
Funds
2022
2021
£'000
£'000
£'000
£'000
£'000
£'000
7,914
-
-
-
7,914
7,926
(1,236)
-
-
-
(1,236)
(1,406)
6,678
-
-
-
6,678
6,520
-
-
1,251
-
1,251
1,304
-
-
-
178
178
238
-
-
-
250
250
123
200
-
-
-
200
200
75
-
-
-
75
98
140
-
-
-
140
40
-
-
-
-
-
30
-
-
-
-
-
1
415
-
1,251
428
2,094
2,034
127
-
-
-
127
140
98
-
-
-
98
101
48
-
-
-
48
45
-
-
-
2
2
59
-
-
-
-
-
563
22
-
-
-
22
30
295
-
-
2
297
938
607
-
2
-
609
667
228
1
-
-
229
174
-
-
-
-
-
23
835
1
2
-
838
864
534
3
-
15
552
528
-
-
-
275
275
357
-
-
-
268
268
515
-
-
-
49
49
49
54
-
-
-
54
94
588
3
-
607
1,198
1,543
94
165
409
24
692
650
30
-
4
-
34
5
-
-
808
-
808
796
124
165
1,221
24
1,534
1,451
-
1,027
-
15
1,042
928
-
1,027
-
15
1,042
928
8,935
1,196
2,474
1,076
13,681
14,278
*** Restricted Funds ***

30

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

For the year ended 31 December 2022
*** Restricted Funds ***
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Funds & Pastoral Fund Funds 2022 2021
£'000 £'000 £'000 £'000 £'000 £'000
7. Expenditure on raising funds
Investment management costs
Glebe management charges - - 134 - 134 150
Trading expenses
Property support services - - - 335 335 297
Easton development - - - 323 323 515
Commercial property - - - 49 49 49
- - 134 707 841 1,011
8. Expenditure on charitable activities
Contributions to Archbishop's Council
Training for ministry 334 - - - 334 453
National Church responsibilities 269 - - - 269 288
Grants and provisions 10 - - - 10 11
613 - - - 613 752
Expenditure on resourcing ministry and
mission
Parish ministry:
Stipends and national insurance 2,414 - 2,266 - 4,680 4,873
Pension contributions 1,415 - (167) - 1,248 1,327
Housing costs 1,370 4 - - 1,374 1,244
Removal, resettlement and other grants 183 - - - 183 141
Other expenses 129 - - - 129 150
5,511 4 2,099 - 7,614 7,735
Support for parish ministry 2,091 4 - - 2,095 2,095
Resourcing Ministerial Education - - - 172 172 212
Roof Alarm Appeal - - - 2 2 59
Mission Strategy - - - - - 63
Church Planting and Revitalisation - - - 354 354 330
2,091 4 - 528 2,623 2,759
Expenditure on education
Support for church schools 454 - - - 454 478
Grants - - - 84 84 20
454 - - 84 538 498
Total expenditure on charitable activities 8,669 8 2,099 612 11,388 11,744
Total expenditure 8,669 8 2,233 1,319 12,229 12,755
9. Analysis of expenditure
including allocation of support costs Activities
undertaken
directly
£'000		 Grant
funding of
activities
£'000		 Support
costs
£'000		 Total
2022
£'000		 Total
2021
£'000
Raising funds 841 - - 841 1,011
Contributions to Archbishop's Council 613 - - 613 752
Resourcing Ministry and Mission 8,631 99 1,463 10,193 10,494
Education, Youth Children and Families 454 84 - 538 498
Church Buildings Commission 13 - - 13 -
Parish Giving Scheme 31 - - 31 -
10,583 183 1,463 12,229 12,755

31

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NORWICH DIOCESAN BOARD OF FINANCE LIMITED NORWICH DIOCESAN BOARD OF FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 December 2022
*** Restricted Funds ***
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Funds & Pastoral Fund Funds 2022 2021
£'000 £'000 £'000 £'000 £'000 £'000
10. Analysis of support costs
Central administration and office property costs 1,276 - - - 1,276 1,305
(inc. final salary pension adjustments)
Governance:
Amounts paid to auditor:
External audit 28 - - - 28 26
Accountancy 7 - - - 7 5
Registrar, Chancellor, PCR2 review and HR 144 - - - 144 176
Synodical costs 8 - - - 8 6
1,463 - - - 1,463 1,518
11. Analysis of grants made
Included within:
Contributions to the Archbishop's Council
Education and training grants
Resourcing ministry and mission:
Resettlement and first incumbency grants
Support for parish ministry
Resourcing Ministerial Education
Roof Alarm Appeal
Church quinquennial inspections
PCC Faculty fees
Repair and reordering of redundant churches
PCC grant
Sharing good news grants
Continuing Ministerial Development
Good Work Chaplaincy grants
Norfolk and Waveney Churches Together
Mission Strategy
Church Planting and Revitalisation
Education
CEE grants to schools and academies		 Individuals
£'000
-
103
183
52
-
-
-
-
-
-
9
-
-
-		 Institutions
£'000
510
-
-
120
2
83
18
4
2
7
-
8
3
-
52
82		 Total
2022
£'000
510
103
183
172
2
83
18
4
2
7
9
8
3
-
52
82		 Total
2021
£'000
607
145
141
212
59
80
18
6
3
1
5
6
3
43
34
20
347 891 1,238 1,383
12. Staff costs
Staff costs were as follows:
Gross salaries
Social security costs
Redundancy
Pension contributions
Lump sum contributions and advisory costs
Health insurance contributions		 2022
£'000
1,293
129
3
161
173
10		 2021
£'000
1,395
134
26
175
146
17
1,769 1,893

Payments in respect of redundancy totalling £3k were made in the year, these had all been paid over by the year-end. The payments were in respect of the following posts: Social, Community and Environmental Concerns Coordinator (including Chaplaincy Support Coordinator and Ecumenical Criminal Justice Forum Coordinator), Chaplain Norfolk Coroner's Service and Communications Officer.

32

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

12. Staff costs (continued)

The average head count of total employees:
The average number of employees, based on full-time equivalents were as follows:
Resourcing ministry
Support for parish ministry
Safeguarding
Counsellor
Property
Parochial lay staff
Church Planting and Revitalisation
Education, youth, families and children
Spire Support Services Limited		 2022
50
20
3
1
3
3
5
6
4
45		 2021
50
19
2
1
4
3
4
6
4
43

The number of staff whose emoluments (including benefits in kind but excluding pension contributions) exceeded £60,000 were:

2022 2021
£60,000 - £70,000 1 -
£70,000 - £80,000 1 -
£80,000 - £90,000 2 2
£130,000 - £140,000 - 1

Pension contributions amounting to £35k were made in the year for the provision of money purchase benefits for the above employees.

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the Bishop's Council of Trustees, for planning, directing and controlling the activities of the diocese. During 2022 they were:

The Diocesan Secretary and Chief Executive, the Director of Property Services, the Director of Education, and the Director of Finance. Remuneration (including employers National Insurance, pension costs and benefits-in-kind) and expenses for these employees amounted to £384.7k (2021: £504k including interim Diocesan Secretary and Director of Communications).

Trustees Remuneration

No remuneration has been paid to any member of the Bishop's Council of Trustees in their capacity as Trustees (2021: £NIL). Two members were reimbursed for travel and incidental costs incurred in undertaking their Trustee duties totalling £95 (2021: one member £34).

During the year the Board made contributions to the Church Commissioners towards the stipends, national insurance and pension contributions of the licensed clergy who are Trustees and provided houses, including the payment of council tax and maintenance costs, as part of normal clergy remuneration.

The following table gives details of the Trustees who were in receipt of a stipend and/or housing/housing rental provided by the Norwich Diocesan Board of Finance Limited during the year:

Stipend Housing
The Ven. Ian Bentley (resigned 16 May 2022) Yes Yes
The Ven. Steven Betts Yes Yes
The Ven. Catherine Dobson Yes Yes
The Ven. Karen Hutchinson (resigned 4 April 2022) Yes Yes
The Ven. Keith James Yes Yes
The Revd. Matthew Price Yes Yes
The Revd. Dr Patrick Richmond Yes Yes
The Rt. Revd. Dr Jane Steen No Yes
The Revd. Canon Simon Stokes Yes Yes
The Revd. Stephen Thorp Yes Yes

33

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

12. Staff costs (continued)

Stipendiary Clergy (continued)

The Board is responsible for funding via the Church Commissioners the stipend of licenced stipendiary clergy in the diocese, other than bishops and cathedral staff. The Board is also responsible for the provision of housing for stipendiary clergy in the diocese including the suffragan bishops but excluding the diocesan bishop and cathedral staff.

Parochial Clergy:The average number of clergy holding parochial
or archidiaconal posts in the diocese was:
At a cost before recharges of:
Stipends
National Insurance contributions
Pension contributions		 2022
2021
155
166
£'000
£'000
4,317
4,500
369
378
1,482
1,702
6,168
6,580

The stipends of the Diocesan Bishop and two Suffragan Bishops are funded by the Church Commissioners and are in the range of £37,673 to £46,640. The annual rate of stipend, funded by the Board, paid to Archdeacons in 2022 was in the range of £36,830 to £37,198 and other clergy who were members of the Bishop's Council of Trustees were paid in the range £27,000 to £27,270. The estimated value to the occupant, gross of income tax and national insurance, of church provided housing in 2022 is an average of £12,900 p.a.

13. Net gains/(losses) on investments

Investments (note 20)
Realised
Unrealised - listed
- unlisted
Glebe Holding (note 19)
Realised
Unrealised
Net gains/(losses)
Net income/(expenditure)
This is after charging:
Depreciation
Analysis of transfers between funds
Transfer from General Fund to close Cormorants Restricted
Fund		 Capital
and
Cormorants
General
£'000
£'000
(1)
1
(1)
1
Restricted Funds		 2022
2021
£'000
£'000
(282)
111
(2,224)
1,922
(175)
187
878
38
10,001
-
8,198
2,258
2022
2021
£'000
£'000
16
25
Total
2022
£'000
-
-

14. Net income/(expenditure)

15. Analysis of transfers between funds

Transfer of funds to close Corrmorants sailing holiday fund.

34

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

16. Endowments and Glebe Measure, 1976

Income and Expenditure Account
£'000
Income (note 5)
Glebe rents and interest receivable
811
Expenditure (note 7)
Surveyor's and Agent's fees
56
Legal and other administration charges
80
137
Surplus for the year
674
Taxation
The Board has no liability to corporation tax or capital gains tax.
Tangible assets
Subject to
Benefice
Other
value linked
and Commercial
freehold
loans
Glebe
Pastoral Property
property
£'000
£'000
£'000
£'000
£'000
At cost or valuation
At 1 January 2022
485
5,875
78,313
755
2,882
Additions
-
-
1,711
-
-
Disposals
-
-
(1,634)
-
-
At 31 December 2022
485
5,875
78,390
755
2,882
Accumulated depreciation
At 1 January 2022
-
-
-
-
-
Disposals
-
-
-
-
-
Charge for the year
-
-
-
-
-
At 31 December 2022
-
-
-
-
-
Net book value
At 31 December 2022
485
5,875
78,390
755
2,882
At 31 December 2021
485
5,875
78,313
755
2,882
Company
At 31 December 2022
485
5,875
78,390
240
2,882
At 31 December 2021
485
5,875
78,313
240
2,882
2022
£'000
The net book amount comprises:
Assets used, or intended to be used, predominantly
86,507
for direct charitable purposes
Assets used for administration and other purposes
1,912
88,419
2022
* Freehold Property *		 £'000
800
54
96
153
647

Office
2022

and otherConsolidated

equipment
Total
£'000
£'000
134
88,444
37
1,748
-
(1,634)
171
88,558
123
123
-
-
16
16
139
139
32
88,419
11
88,321
31
87,903
9
87,804
2021
£'000
86,430
1,891
88,321
2021

17. Taxation

18. Tangible assets

35

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

18. Tangible Fixed Assets - continued

Freehold property subject to value linked loans comprises freeholds where loans have been received from Church Commissioners or Parochial Church Councils towards the capital expenditure and, as part of the agreement, all or part of the sale proceeds will be repayable on final disposal. These properties are carried at their pre-existing balance sheet revaluation as deemed cost. Each year end the loan is carried at an index linked current valuation basis (note 26).

Glebe Property (mainly residential houses) comprises:
Houses at valuation as at 1 January 2022
Additions
Disposals
Valuation as at 31 December 2022
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2022
Subsequent additions at cost
Disposals
Valuation as at 31 December 2022		 Glebe Property (mainly residential houses) comprises:
Houses at valuation as at 1 January 2022
Additions
Disposals
Valuation as at 31 December 2022
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2022
Subsequent additions at cost
Disposals
Valuation as at 31 December 2022		 2022
£'000
5,875
-
-
5,875
78,313
1,711
(1,634)
78,390		 2021
£'000
5,792
83
-
5,875
78,656
1,145
(1,488)
78,313

The Board has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The Board is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Bishop's Council of Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their pre-existing balance sheet revaluation as deemed cost. No further revaluations will be performed on these assets.

Property held by the Diocesan Consolidated Education Endowments, comprising school land and buildings including teachers' houses, some of which are let, is vested in the Board. It is not considered appropriate to include these as assets in the balance sheet because they are in the main held in the very long term and their disposal and the right to any proceeds of sale are subject to the agreement of the Local Education Authority.

19. Glebe Land

Glebe Land Glebe Land
Consolidated
Valuation at 1 January 2022
Additions
Disposal proceeds
Profit on disposal
Revaluation adjustment
Valuation at 31 December 2022
Company
Valuation at 31 December 2022		 £'000
37,078
-
(936)
878
10,001
47,021
47,021

The Glebe land, which is considered to be investment property, was revalued by FPD Savills, Property Consultants, at its estimated open market value as at 31 December 2022. This valuation, which represents an average £8,146 per acre, will be updated every five years. Details of the historic cost of the majority of the Glebe holding is not available.

36

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

20. Fixed asset investments

----- Start of picture text -----
Profit/(loss)
At 1 January Disposal on Increase/(decrease) in At 31 December
2022 Additions proceeds Disposal Market value 2022
£'000 £'000 £'000 £'000 £'000 £'000
Unrestricted Funds
Listed investments 2,872 272 (1,274) (74) (253) 1,543
Unlisted investments 100 - - - - 100
Cash 32 - 630 - - 662
3,004 272 (644) (74) (253) 2,305
Restricted Funds
Listed investments 16,358 1,934 (2,986) (208) (1,971) 13,127
Unlisted investments 1,498 - - - (175) 1,323
Cash 202 - 629 - - 831
18,058 1,934 (2,357) (208) (2,146) 15,281
Total 21,062 2,206 (3,001) (282) (2,399) 17,586
2022 2021
The unlisted securities comprise:- £'000 £'000
Shares in the Central Board of Finance -
Investment Fund 43 48
Property Fund 1,185 1,343
(valued as per the Central Board of Finance)
COIF Charities Investment Fund Income shares
(valued as per COIF Charity Funds) 95 107
Investment in Eastern Landowners Consortium 97 97
Investment in CMCU shares 3 3
1,423 1,598
The historical cost of the above assets is as follows:
Listed securities 12,641 13,580
Unlisted securities 1,140 1,140
Cash 1,493 234
15,274 14,954
----- End of picture text -----

The following shareholdings, at valuation, form a material part of the investment portfolio (i.e. greater than 5% of the total of the Board's consolidated investments).

M & G Charifund income units
Central Board of Finance Property Fund
Eskmuir Diversified Property Fund		 2022
2021
£'000
£'000
-
1,641
1,185
1,343
2,251
2,446
3,436
5,430

37

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 December 2022		 NORWICH DIOCESAN BOARD OF FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 December 2022		 NORWICH DIOCESAN BOARD OF FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 December 2022
21.
Stock
Stock and Work-in-Progress
22.
Debtors
Company
Due within one year
Parish share
Assigned fees
Prepayments and accrued income
Amounts due from Subsidiary undertakings
Other debtors
Consolidated
Prepayments and accrued income
Other debtors
Company and Consolidated
Due after more than one year
Deferred costs on development project
Loans (note 23)
23.
Loans Receivable
Company and Consolidated
Amounts due from Subsidiary undertakings
Amounts falling due after more than one year
24.
Creditors - amounts falling due within one year
Company
Tax and social security costs
Other creditors
Accruals and deferred income (note 35)		 2022
2021
£'000
£'000
26
9
2022
2021
£'000
£'000
339
246
79
88
303
320
188
112
460
666
1,369
1,432
7
4
217
736
1,593
2,172
-
140
473
477
2,066
2,789
2022
2021
£'000
£'000
473
477
473
477
473
477
2022
2021
£'000
£'000
36
38
1,187
325
1,708
1,706
Consolidated
Tax and social security costs
Other creditors
Accruals and deferred income (note 35)
25.
Creditors - amounts falling due
after more than one year
Loans due by the Board (note 26)
26.
Loans due by the Board
Company
Church Commissioners Property Loans - Value Linked Loans
Consolidated
Amount owed to group undertakings
Amounts falling due after more than one year
Interest payable on loans due by the Board		 2,931
19
542
1,103
4,595

38

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

27.
Summary of fund movements
Unrestricted funds
Capital and General
Designated funds:
Aided Church Schools
Buildings Reserve
Diocesan Parsonages Fund
Jane Bailey Bequest
Total unrestricted funds
Restricted funds
Stipends Fund
Benefice Buildings and Pastoral Fund
Other Restricted Funds
Margaret Young Fund
Cormorants
Bishops' Fund for Readers in Training
Burning Bush Barn
Roof Alarm Appeal
Resourcing Ministerial Education
Church Planting and Revitalisation
Subsidiaries and Quasi subsidiaries
Trading Subsidiaries: (see note 33)
Non-charitable trading funds
Consolidated Education Endowments
Trusts
Total other restricted funds
Total restricted funds
Total funds
Unrestricted funds		 Balances at
Balances at
1 January
Gains and
31 December
2022
Income Expenditure
Transfers
losses
2022
£'000
£'000
£'000
£'000
£'000
£'000
9,065
8,934
(8,665)
(1)
557
9,890
178
-
-
-
-
178
85
-
-
-
-
85
594
1
(4)
-
-
591
857
-
(4)
-
-
854
9,922
8,935
(8,669)
(1)
557
10,744
56,392
2,474
(2,233)
-
9,482
66,115
82,308
1,196
(8)
-
(704)
82,792
242
-
-
-
-
242
(1)
-
-
1
-
-
7
-
-
-
-
7
7
-
-
-
-
7
-
2
(2)
-
-
-
48
178
(172)
-
-
54
294
250
(354)
-
-
190
145
592
(707)
-
-
30
2,097
52
(82)
-
(124)
1,943
105
2
(2)
-
(3)
102
2,944
1,076
(1,319)
1
(127)
2,575
141,644
4,746
(3,560)
1
8,651
151,482
151,566
13,681
(12,229)
-
9,208
162,226

The Board's Capital and General Funds includes £990,000 relating to capital (2021: £990,000). The General Reserve represents those assets held by the Board for carrying out its general activities. It provides the assets and liquidity for the Board to carry out its objectives, including statutory compliance, administration of funds and some housing.

Designated funds

The Aided Church Schools Buildings Reserve represents designated funds set aside for the maintenance and repair of Church schools.

The Diocesan Parsonages Fund represents Parsonage Building Funds held by the Board, which may be applied to either the Benefice Buildings and Pastoral or the Stipends Capital.

The Jane Bailey Bequest was established by the will of the late Miss Sybella Jane Bailey, who died on 16 November 1993. The Board became entitled to this by a Deed of Appointment, dated 14 November 1995 and the assets thereof, consisting of Cavick House and grounds, together with three adjacent dwellings near Wymondham, were vested in the Board with effect from 30 August 1996. Following agreement with the executors of the estate, the property was sold in December 1998. The resulting funds have been used for the provision of archdeacons housing and related housing costs.

Restricted funds

The Stipends Fund derives mainly from the historic Glebe property of the Diocese and is restricted as to its use by Section 35 of the Endowments and Glebe Measure, 1976.

39

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

27. Summary of fund movements (continued)

Restricted funds - continued

The Margaret Young Fund was established by the will of the late Margaret Caroline Young. The Board became entitled to the property Babur Hill Cottage, Bawburgh, on the death of the life tenant on 26 July 2008, and the transfer of ownership took place during 2009. This was subsequently sold in October 2010. The fund is to be used towards the provision of housing for retired clergy.

Cormorants was established to run Christian sailing holidays for young people. This activity has now ceased.

The Bishops' Fund for Readers in Training was set up by a former Archdeacon of Lynn, John Ashe from a collection in Norwich Cathedral, to provide financial assistance to students.

The Burning Bush Barn was contemplative art space set in the rural village of Rockland St Mary 6 miles south of Norwich City centre. This is currently being re-imagined for future spiritual growth through creative visual art.

To combat the threat of church lead thefts the Bishop of Norwich, the Police and Crime Commissioner for Norfolk, the Norfolk Churches Trust, Allchurches Trust and the Round Tower Churches Society have been working together to find a long-term solution and have created The Roof Alarm Scheme. The appeal raises funds towards the cost of installing alarms on church roofs. Income is released to match expenditure.

Resourcing Ministerial Education is a framework for paying to support Ordinands in initial training which supports diocesan and national ministry strategies, incentivises sponsorship of younger candidates and offers clear links between training choices and financial implications. Block grants are restricted and income is released to match expenditure.

The Church Planting and Revitalisation project began in September 2019, with the aim to create new or revitalised churches across Norfolk and Waveney. At the beginning of 2022 a new re-set of this project was agreed by the Bishop's Council of Trustees and Archbishops' Council, with the plan to continue the work of revitalisation in areas where this is working well and to refocus church planting to enable a defined number of missional communities. The revised total project costs are £1.8m (previously £3.2m) the revised grant funding from Archbishops' Council is £1.23m (previously £1.98m), with the balance being met from Diocesan funds. The project will end as planned at 31 December 2023.

The Benefice Buildings and Pastoral Fund is represented by parsonage and other houses and assets derived from the sale of such houses or churches which have become redundant. The use of pastoral monies is restricted by Section 78 of the Pastoral Measure, 1983. However, the Bishop of Norwich has given the Diocesan Secretary sanction for the use of these funds at his discretion for ministry and mission purposes.

28. Pension costs

The Church of England Funded Pension Scheme

The Norwich Diocesan Board of Finance participates in the Church of England Funded Pension 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 Body.

Each participating Responsible Body in the 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. This means it is not possible to attribute the Scheme's assets and liabilities to each specific Responsible Body and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged in the Statement of Financial Activities in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions.

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

An average discount rate of 2.7% pa;

RPI inflation of 3.6% pa (and pension increases consistent with this);

CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustments from 2030 onwards;

Increase in pensionable stipends in line with CPIH;

Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI 2020 extended model, with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% pa.

40

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

28. Pension costs (continued)

The Church of England Funded Pension Scheme (continued)

Following the 31 December 2018 valuation, a recovery plan was put into place until 31 December 2022 and the deficit recovery contributons payable (as a percentage of pensionable stipends) were set as follows:

% of pensionable stipends 1 January 2018 to 1 January 2021 to
31 December 2020 31 December 2022
Deficit repair contributions 11.9% 7.1%

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contibutions ceased with effect from 1 January 2023 as the scheme was in surplus. The deficit recovery contributions under the recovery plan in force as at 31 December 2021 were as set out above.

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. As there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and 2022 is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Interest cost (recognised in Statement of Financial Activities)
Remaining change to the balance sheet liability* (recognised in SoFA)
Balance sheet liability at 31 December		 2022
2021
£'000
£'000
293
614
(167)
(304)
-
1
(126)
(18)
-
293

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions for 2020 and 2021. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 as pensionable stipends for the remainder of the recovery plan were already known.

% of pensionable stipends

% of pensionable stipends
Discount rate December 2022
n/a		 December 2021
0% pa		 December 2020
0.2% pa
Price inflation n/a n/a 3.1% pa
Increase to pensionable payroll n/a -1.5% pa 1.6% pa

The legal structure of the scheme is such that if another Responsible Body fails, the Norwich Diocesan Board of Finance Limited could become responsible for paying a share of that Responsible Body's pension liabilities.

The Board's Pension Scheme

Norwich Diocesan Board of Finance Limited operates a final salary defined benefit pension plan in the UK, the Norwich Diocesan Board of Finance Limited Pension Scheme. A comprehensive actuarial valuation of the scheme was carried out as at 1 April 2022 which has been updated to 31 December 2022 by a qualified independent actuary.

Information about the Scheme is set out below consistent with section 28 of FRS 102.

Employee benefit obligations - amounts recognised in the balance sheet:

Present value of funded obligations
Fair value of plan assets
Net defined benefit asset		 2022
2021
£'000
£'000
1,619
2,522
3,254
2,993
1,635
471

The pension plan assets do not include property occupied by the sponsoring employer.

41

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

28. Pension costs (continued)

The Board's Pension Scheme (continued)

The scheme assets include insurance policies that exactly match the amount and timing of the benefits payable under the Scheme to those current pensioners whose pensions are fully secured in immediate annuity policies. Since the fair value of these insurance policies is deemed to be the present value of the related obligations, both the asset and corresponding liability have been ignored in the disclosures.

The amounts recognised in the Statement of Financial Activities are as follows:

Current service cost
Scheme administration expenses
Interest expense
Interest income
Total (income)/cost recognised in Statement of Financial Activities
Actual return on plan assets		 For year to
For year to
31 December 2022
31 December 2021
£'000
£'000
8
9
-
-
45
34
(54)
(36)
(1)
7
194
161

Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Current service cost
Interest expense
Actuarial gain
Benefits paid
Closing defined benefit obligation		 For year to
31 December 2022
£'000
2,522
8
45
(910)
(46)
1,619

FRS 102 states that the reconciliation of changes in the present value of the defined benefit obligation need not be presented for prior periods.

The projected unit method has been used to arrive at the above service cost. The use of this method is prescribed in FRS 102. To produce a stable future contribution rate this valuation method assumes that the average age of the scheme membership will remain broadly constant in future due to a flow of new entrants to the scheme. However, as the scheme is closed to new members this will not be the case and the costs of benefits accruing, as a percentage of pensionable salaries, will be expected to increase over time.

42

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

28. Pension costs (continued)

The Board's Pension Scheme (continued)

Changes in the fair value of plan assets are as follows:

Opening fair value of plan assets
Interest income
Return on Scheme assets, excluding amounts included in
Interest expense/income
Contributions by employer
Benefits paid
Closing fair value of plan assets		 For year to
31 December 2022
£'000
2,993
54
140
113
(46)
3,254

FRS 102 states that the reconciliation of changes in the fair value of plan assets need not be presented for prior periods.

The major categories of plan assets as a percentage of total plan assets are as follows:

2022 2021
% total plan % total plan
assets assets
Unitised with profits policy 100% 100%
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
a) Financial assumptions 2022 2021
Discount rate 4.75% pa 1.8% pa
RPI inflation assumption 3.20% pa 3.25% pa
CPI inflation assumption 2.90% pa 2.85% pa
Future salary increases 3.20% pa 3.25% pa
Pension increases in payment
(RPI - maximum 5%) 2.90% pa 3.15% pa
(CPI - maximum 2.5% ) 1.80% pa 2.15% pa
b) Demographic assumptions
Assumed life expectancy in years, on retirement at 65: 2022 2021
Retiring today Males 21.5 22.2
Females 24.0 24.5
Retiring in 20 years Males 22.8 23.4
Females 25.4 25.9

43

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

29. Redundant Churches

The Board was responsible for the care and maintenance of 3 redundant churches during the year (2021: 3). The cost to the Board was £4,212 (2021: £5,837).

No value has been attributed to these churches on the grounds that it is not material having regard to the liability for repair.

30. Voluntary Aided Schools pooling arrangement

In April 2006 the DFE made voluntary aided school annual devolved formula capital grants available to schools in advance of project spend. A significant number of Diocesan education and finance staff are involved in administering the projects and use of the funds received.

A summary of the transactions between 1 January 2021 and 31 December 2022 is detailed below:

Cash held at 1 January 2021
Grants received from DFE
Payments on behalf of Schools
Cash held at 31 December 2022		 2022
2021
£'000
£'000
477
612
605
191
(308)
(326)
774
477

These grants belong to the individual schools in the pooling arrangement and are not included in the consolidated accounts of Norwich Diocesan Board of Finance Limited.

31. Related party transactions

Transactions with the Ministry division and the Board of Education are included with the Unrestricted Funds in the Statement of Financial Activities. Consolidated Education Endowments is included as a Restricted Fund in the Statement of Financial Activities.

Norwich Diocesan Board of Finance Ltd is Managing or Custodian Trustee for approximately 1,800 Trusts. Where Norwich Diocesan Board of Finance Ltd is Managing Trustee, these trusts are included as a quasi subsidiary in the Statement of Financial Activities.

The Board co-operates closely with The Horstead Centre. The Board leases the Horstead Conference Centre to the Horstead Centre over a fifty year lease at £12 per annum. The market value of this rent is £18,000 per annum. During the year £3,201 was recharged to Norwich Diocesan Board of Finance Limited by the Horstead Centre in respect of Soulshaper, Refresh acitivity day and Clergy family fun day (2021: £3,232), with nothing outstanding at the year end (2021: £Nil). Nothing was charged to the Horstead Centre by the Board in 2022 (2021: £25).

£5,752 (2021: £16,750) was recharged to The Diocese of Norwich Education and Academies Trust (DNEAT) in 2022 by the Consolidated Education Endowments Fund (CEE) and the Norwich Diocesan Board of Finance Ltd, with £nil outstanding at the year end (2021: £3,675). £69,031 (2021: £135,069) was charged to the Norwich Diocesan Board of Finance and CEE with respect to pooling funds and staff costs, with £63,371 (2021:£8,044) outstanding at the year end. £8,432 was recharged to The Diocese of Norwich Education Support Company (DONESC) with respect to desk charges and carpark rental (2021: £27,450, with £nil outstanding at the year end (2021: £6,825). £20,000 was paid to DONESC with respect to Headteacher recruitment support (2021: £42,160), with £20,000 outstanding at the year end (2020: £2,160).

£2,360 (2021: £7,265) was recharged to St Benet's Multi-Academy Trust by the Norwich Diocesan Board of Finance Ltd in 2021 in respect of desk charges and training, with £400 (2021: £1,640) outstanding at the year end.

£54,286 was recharged to The Anne French Memorial Trust in 2022 (2021: £63,918), with £14,028 outstanding at the year end (2021: £11,688). Grants totalling £31,000 were given towards Church Buildings Commission costs and to support a pastoral issue, this income is released to match expenditure, £21,000 has been deferred to 2023. Deferred grants from 2021 totalling £112.769, given towards housing/energy efficiency costs, Generous Giving Advisors and Strategic Programme Management, have been released to match expenditure totalling £34,647 with the balance of £78,122 being deferred to 2023.

The Diocese of Norwich Churches Trust was established during 2015. This is a Charitable Incorporated Organisation (CIO) set up to relieve incumbents and PCC members with very small congregations, from the burden and responsibility of the Churches running costs. Nothing was due at the year end to the Trust by the Norwich Diocesan Board of Finance Limited in respect of fees (2021: £nil).

44

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

32. Capital commitment

There are no known capital commitments.

33. Subsidiary Undertakings

All subsidiary undertakings are included within restricted funds.

(a) Spire Support Services Limited

Spire Support Services Limited is a wholly owned subsidiary of Norwich Diocesan Board of Finance Limited, incorporated on 19 May 2011.

incorporated on 19 May 2011.
2022 2021
£'000 £'000
Net profit (before tax and Corporate Gift Aid) for the year ended 31 December 30 89
Transactions between Spire Support Services Limited and Norwich Diocesan Board of Finance Limited are as
follows:
Expenses paid on behalf of Spire Support Services Limited (inc. recharges) 2022
£'000
188		 2021
£'000
112
Amounts owing by Subsidiary undertaking at 31 December 2022 (debtor) 188 112
Shareholders Equity/(Deficit) - -

During the year Spire Support Services Limited collected rental income net of 8% commission plus VAT of £417,787. Spire Support Services charged Norwich Diocesan Board of Finance Limited (inc. CEE) £106,198 inc VAT for design, surveying services and Church Quinquennials, with £12.879 outstanding at the year end. Norwich Diocesan Board of Finance Limited charged Spire Support Services £21,380 for management oversight, financial services, office rental and loan interest. Spire Support Services Limited will gift £40,514 distributable profit under corporate gift aid to Norwich Diocesan Board of Finance Limited within nine months of the year end. The accounts for Spire Support Services Limited for the year ended 31 December 2022 have been audited by Lovewell Blake LLP and received an unqualified audit opinion. For further information please refer to the subsidiary accounts which are available on request.

(b) NDBF (Easton) Limited

NDBF (Easton) Limited was incorporated on 4th April 2014 to be part of a land-owners consortium for property development in the village of Easton. During 2018 8.604 acres of Glebe land was transferred to NDBF (Easton) Limited from Norwich Diocesan Board of Finance Limited at a valuation of £54,966, being £6,388.22 per acre.

NDBF Easton Limited net profit for the year ended 30 April 2022
NDBF Easton Limited net profit for the period ended 31 December 2022		 2022
£'000
784
nil

In January 2023 £783,720 was gifted under corporate gift aid to Norwich Diocesan Board of Finance Limited. The accounts for NDBF Easton Limited for the year ended 30 April 2022 and the period ended 31 December 2022 have been audited by Lovewell Blake LLP and received an unqualified audit opinion. For further information please refer to the subsidiary accounts which are available on request.

(c) Norwich Glebe Property Limited

Norwich Glebe Property Limited was incorporated on 26 February 2016 and was set up in order to hold commercial glebe property.

Norwich Glebe Property Limited net profit for the year ended 31 December 2022
2021
£'000
£'000
29
30

During the year Norwich Diocesan Board of Finance Limited collected rental income and expenses net of VAT of £49,147 on behalf of Norwich Glebe Property Limited, paid costs of £3,490 and charged loan interest of £16,480 to Norwich Glebe Property Limited. Norwich Glebe Property Limited will gift the above net profit under corporate gift aid to Norwich Diocesan Board of Finance Limited within nine months of the year end. The accounts for Norwich Glebe Property Limited for the year ended 31 December 2022 have been audited by Lovewell Blake LLP and received an unqualified audit opinion. For further information please refer to the subsidiary accounts which are available on request.

45

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

34.
Financial Instruments
Financial assets
Measured at fair value through net income/expenditure:
Fixed asset listed investments (note 20)
Equity instruments measured at cost less impairment:
Fixed asset unlisted investments (note 20)
Financial liabilities
Measured at fair value through net income/expenditure:
Value Linked loans (note 26)
35.
Deferred income(note 24)
Deferred income brought forward at 1 January 2022
Deferred income (released)/added during the year
Deferrred income carried forward at 31 December 2022
The carrying amounts of the company's financial instruments are as follows:		 2022
2021
£'000
£'000
14,670
19,230
1,423
1,598
416
390
2,889
2,714
(358)
175
2,531
2,889

Deferred income relates to funds received for specific projects which are deferred until the expenditure is incurred.

46

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

36. Prior year comparative Statement of Financial Activities

Income and endowments from
Donations
Parish contributions
Archbishops' Council
Other donations
Charitable activities
Other activities
Investments
Other sources
Total income
Expenditure on
Raising funds
Charitable activities
Total expenditure
Net income before
investment gains
Net gains on investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses)
Adjustment of value linked loans
Actuarial gain/(loss) on defined benefit
pension scheme
Net movement in funds
Reconciliation of funds
Total funds at 1 January 2021
Total funds at 31 December 2021		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*Total Funds
Funds & Pastoral
Fund
Funds
2021
£'000
£'000
£'000
£'000
£'000
6,520
-
-
-
6,520
368
-
1,305
361
2,034
316
-
-
622
938
861
-
3
-
864
600
1
-
942
1,543
84
154
1,191
22
1,451
543
384
-
1
928
9,292
539
2,499
1,948
14,278
-
-
150
861
1,011
6,507
12
4,541
684
11,744
6,507
12
4,691
1,545
12,755
2,785
527
(2,192)
403
1,523
293
555
1,320
90
2,258
3,078
1,082
(872)
493
3,781
-
-
-
-
-
(37)
-
-
-
(37)
135
-
18
-
153
3,176
1,082
(854)
493
3,897
6,746
81,226
57,246
2,451
147,669
9,922
82,308
56,392
2,944
151,566

47

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2022

37. Statement of Financial Activities at Company level before consolidation of Trading subsidiaries, CEE and Trusts

Income and endowments from
Donations
Parish contributions
Archbishops' Council
Other
Charitable activities
Other activities
Investments
Other sources
Total income
Expenditure on
Raising funds
Charitable activities
Total expenditure
Net (expenditure)/income before
investment gains
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses)
Adjustment of value linked loans
Actuarial gain/(loss)on defined benefit
pension scheme
Net movement in funds
Reconciliation of funds
Total funds at 1 January 2022
Total funds at 31 December 2022		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*Total Funds
Total Funds
Funds & Pastoral
Fund
Funds
2022
2021
£'000
£'000
£'000
£'000
£'000
£'000
6,678
-
-
-
6,678
6,520
415
-
1,251
428
2,094
2,034
295
-
-
2
297
938
835
1
2
-
838
864
588
3
-
-
591
601
124
165
1,221
-
1,510
1,429
-
1,027
-
-
1,027
927
8,935
1,196
2,474
430
13,035
13,313
-
-
134
-
134
150
8,669
8
2,099
527
11,303
11,722
8,669
8
2,233
527
11,437
11,872
266
1,188
241
(97)
1,598
1,441
(327)
(704)
9,356
-
8,325
2,168
(61)
484
9,597
(97)
9,923
3,609
(1)
-
-
1
-
-
(26)
-
-
-
(26)
(37)
910
-
126
-
1,036
153
822
484
9,723
(96)
10,933
3,725
9,922
82,308
56,392
597
149,219
145,494
10,744
82,792
66,115
501
160,152
149,219

48

Norwich Diocesan Board of Finance Limited Annual Report and Financial Statements 2022

Diocesan House, 109 Dereham Road, Easton, Norwich NR9 5ES Tel: 01603 880853 Email: info@dioceseofnorwich.org www.dioceseofnorwich.org