Annual Report and Financial Statements **2023**
_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
**THE NORWICH DIOCESAN BOARD OF FINANCE LIMITED (A company limited by guarantee)**
## **REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **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|
**1**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
**The Bishop’s Council of Trustees (Board of Directors)** Mark Jeffries (Chairman) **as at 10 June 2024** Mark Allbrook The Ven. Steven Betts The Rt. Revd. Ian Bishop (appointed 29 September 2023) The Very Revd. Dr Andrew Braddock Paul Cracknell The Ven. Catherine Dobson Virginia Edgecombe Catherine Howe (appointed 13 July 2023) The Ven. Keith James Kandara Kammoun Susan Martin The Revd. Matthew Price The Revd. Dr Patrick Richmond 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)**
**Director of Finance**
Tim Sweeting Susan Bunting BFP FCA
## **Registered Office**
Diocesan House, 109 Dereham Road, Easton, Norwich NR9 5ES
Norwich Diocesan Board of Finance Ltd Spire Support Services Ltd NDBF Easton Ltd Norwich Glebe Property Ltd
**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 Stockbrokers**
LGT 14 Cornhill, London EC3V 3NR CCLA Investment Management Limited, 80 Cheapside, London EC2V 6EE JM Finn & Co, 4 Coleman Street, London, EC2R 5TA
**2**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **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.
**3**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **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:
- consider matters affecting the Church of England in the diocese;
- act as a forum for debate of Christian opinion on matters of religious or public interest;
- advise the bishop where requested;
- deal with matters referred by General Synod;
- provide for the financing of the diocese.
## **Deanery Synod**
Deanery Synod has two houses, laity and clergy, and its role is to:
- respond to requests from General Synod;
- where appropriate, give effect to the decisions made by the Diocesan Synod;
- consider matters affecting the Church of England by drawing together the views of the parishes within the deanery;
- act as a channel of communication to express the views of parishes to Diocesan Synod and thence to General Synod;
- raise with Diocesan Synod such matters as it considers appropriate; and
- elect members of the deanery to the Diocesan Synod and of the diocese to General Synod.
## **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:
- To act as the Standing Committee of Diocesan Synod and to plan the business of the Synod, to prepare the agenda for its sessions and to circulate to members information about matters for discussion;
- To initiate proposals for action by the Synod and to advise it on matters of policy, including effective communication of priorities, strategies and policies;
- To oversee and co-ordinate the work of all Diocesan Boards, Committees, Forums, Working Groups and responsible individuals; to ensure regular reporting to the Bishop’s Council and/or Diocesan Synod as appropriate;
- To receive an annual report from the Independent Chair of the Diocesan Safeguarding Advisory Panel about the panel’s work and an assessment of all aspects of safeguarding within the diocese;
- To oversee and review the workings of the Synodical process, with particular attention to the connection between Deanery, Diocesan and General Synods;
- Subject to the directions of the Synod, to transact the business of the Synod when the Synod is not in session;
## **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.
**4**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2023**
## **Introduction**
The combination of tireless work across our parishes, and the skills of a hugely dedicated Parish Support Team, enabled the Diocese broadly to withstand the financial pressures that it inevitably encountered in 2023. Levels of parish share held up relatively well but remain below pre-pandemic levels. As a result, inflationary pressures were even more acute. Expenditure has been well-contained but is flattered by savings resulting from clergy vacancies which, despite best endeavours to recruit, remain unfilled.
## **Income and expenditure**
As you will see from the accounts, in 2023 the Diocese received a total of £6.644m in Parish Share, 82.4% of the amount requested. This is an impressive achievement but remains below the pre-pandemic level of £7 million and is slightly less than the amount received in 2022. We continue to give thanks for the very committed and often sacrificial giving by many parishes, particularly within the national context of financial uncertainty and the rising cost of living. The financial impact of these factors varies highly from parish to parish.
Parish Share is the primary source of income to facilitate mission and ministry across the Diocese. This is invested in resourcing front line ministry – primarily clergy stipends, training, pensions and housing costs. The full cost of ministry in the Diocese in 2024 equates to £70,420 per year for each stipendiary incumbent status clergy post. In contributing to the cost of ministry through the parish share, parishes are not simply buying in a service or paying someone to take services. On the contrary, church members are contributing to a ministry to the whole parish, including those who come to church regularly and those who do not.
The Diocesan Board of Finance invests heavily in future ministry through vocational discernment, training and equipping ordained and lay ministers for the future, as well as supporting parishes in many areas such as safeguarding, mission and ministry, finance, HR, care of church buildings, property and housing, Generous Giving, education, youth, children and families. The support available to our parishes is extensive and we encourage them to contact members of the Parish Support Team for help and advice.
The Diocesan financial statements are complex and include the consolidation of trading subsidiaries, large yearend pension revaluations, 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 2023, excluding year end pension scheme revaluations, movement in stock market valuations, property sales, support of restricted projects, and subsidiary company results, is £87k (2022: £50k).
We have continued to work 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:
- Average stipendiary clergy numbers were 15 posts below budget and therefore we have more vacancies in stipendiary posts than planned. This has reduced costs temporarily until the posts are filled. Every effort is being made to fill vacant posts and we expect to see an increase in costs attributable to them. Had we filled the posts during 2023, then we would have seen a significant deficit, as income has not increased.
- Housing costs for our clergy increased significantly (£753k). Part of this relates to catch-up work after the pandemic and it also reflects increased prices for materials and labour. This has continued in 2024 and will continue in 2025 as we continue to address a backlog of repairs, face increased prices and improve the environmental status/impact of our portfolio.
During 2023 we have focused attention on our subsidiary company, Spire Support Services Limited, to ensure the company is adequately staffed and can grow in accordance with its revised business plan. This has resulted in extra costs during 2023 and a small loss of £1k, but we are hopeful that the additional investment will prove fruitful in 2024 and beyond. 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. Surpluses will be transferred to the Diocese under the corporate gift aid scheme.
We appointed new investment managers in 2023, resulting in restructured portfolios. We are starting to see the impact of better investment returns during 2024 which relieves some of the pressure on Parish Share. Returns will always remain volatile as the markets react to UK and worldwide events. The Asset Management Committee continues to identify opportunities to increase the return on the assets under the control of the Board of Finance.
**5**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2023**
## **Assets and liabilities**
An independent actuary valued the staff pension scheme (which was closed to new members in 2001), at £1.441m (2022: £1.635m), a decrease of £194k. This is not a cash asset, and the Bishop’s Council of Trustees have appointed a professional trustee to sit on the Pension Trustee Board with a view to buying out the scheme’s liabilities through an insurer. Full details of pension costs are shown in note 28, on pages 40 to 43.
Such 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 2023, excluding the contribution from trading subsidiaries, is set out in the company balance sheet on page 22 and amounts to £161.6m. The increase of £1.4m relates mainly to an increase in the value of stock market investments.
The summary on page 7 also shows the realised gains on the disposal of properties of £765k. This is the difference between the frozen values reflected on our balance sheet and the proceeds of sale of five properties. In addition, we purchased six properties, and these movements are reflected on the balance sheet.
## **Finance Strategy**
A high-level finance strategy for the Norwich Diocesan Board of Finance Limited was agreed by the Bishop’s Council of Trustees in May 2023. Further detail was agreed in January 2024, including the approach to the use of unapplied total return to support delivery of the Vision and Priorities, Net Zero Carbon priorities and the recommendations from the report of the Church Buildings Commission.
## **Parish Giving Scheme and Digital Rollout**
We launched the Parish Giving Scheme in our Diocese early in 2022 and again commend this to all parishes. Currently, PCCs in 152 parishes have resolved to offer the Parish Giving Scheme to their congregation and wider community. This 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 reducing the burden on parish treasurers and planned giving officers.
## **External Funding**
It is pleasing to report that we have been successful in securing external funding for several areas of our future work. The extra expenditure in these areas will therefore not have an impact on the future requests for Parish Share. Some examples of the additional external funding include grants towards a new Church Buildings Support Officer and ‘Minor Works and Improvements’ funds to offer grants to local churches.
We were also successful in securing external funds to cover the appointment of a new Diocesan Environment Officer and a Net Zero Carbon Officer to help improve the environmental performance of parsonages, churches and schools, in line with the fifth Mark of Mission. In 2024, wider mission, and ministry, will benefit from a substantial investment by the national church in staffing to develop plans for the delivery of our Vision. This will include engagement with churches on how we can, in turn, support their plans for mission at a local level.
## **Thanks**
On behalf of the Trustees, I pay tribute to the Parish Support Team and thank them for their enormous dedication and hard work, together with the considerable 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. As ever, it is much appreciated.
**MARK JEFFRIES**
10 June 2024
**6**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **APPENDIX TO CHAIRMAN'S STATEMENT IN ANNUAL REPORT 2023**
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**
**2023**
**£'000**
Income
11,687
Expenditure
(11,800)
**Operating (deficit)/surplus**
**(113)**
Realised gains on sale of properties
- Board
765
**Net income**
**652**
Adjustment of value linked loans
22
Actuarial (loss)/gain on defined benefit pension scheme
(296)
Gains on investment assets:
Sale of glebe property (realised gains)
647
Revaluation of glebe holding
-
Quoted and unquoted investments
Realised
31
Unrealised
378
Increase in funds
1,434
**Reconciliation of Management accounts operating position**
Net income (shown above)
652
FRS102 Pension disclosure - Clergy Scheme
-
FRS102 Pension disclosure - Company Scheme
(102)
DBF contribution to CPR project
128
Designation of sustainability funds
-
Realised gains on sale of properties
- Board
(765)
**Operating deficit**
**(87)**|**_Board_**
**_2022_**
**_£'000_**
_12,008_
_(11,437)_
**_571_**
_1,027_
**_1,598_**
_(26)_
_1,036_
_878_
_10,001_
_(276)_
_(2,278)_
_10,933_
1,598
(167)
(254)
-
(200)
(1,027)
**(50)**|**Variances**
**£'000**
(321)
(363)
**(684)**
(262)
**(946)**
48
(1,332)
(231)
(10,001)
307
2,656
(9,499)
(946)
167
152
128
200
262
(37)|
|---|---|---|
**7**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
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 2023.
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:
- Management of the funds and property of the Diocese;
**8**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- continued**
## **Structure, governance and management (continued)**
- Consideration and approval of the Financial Policy and Strategy for the Diocese as prepared by the Finance Committee;
- Preparation of annual estimates of expenditure and budgets, including advising on action needed to raise the income necessary to finance expenditure;
- Oversight of expenditure by bodies in receipt of Diocesan Synod’s funds against estimates of expenditure approved by Diocesan Synod;
- Advising Diocesan Synod of the financial aspects of its policy and on any other matters referred to it;
- Statutory filings to the Charity Commission and Companies House;
- Fulfilling employer’s responsibilities and compliance with any legal duties to which the Diocese may be subject;
- Holding responsibility for payment of clergy stipends;
- Carrying out any other functions delegated by Diocesan Synod.
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.
**9**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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:
- The Chair of the Board, to be nominated by the Bishop’s Council;
- The Deputy Chair of the Board, to be nominated by the Bishop’s Council;
- The Treasurer of the Board, to be nominated by the Bishop’s Council;
- An Archdeacon, to be nominated by the Bishop’s Council;
- The Clerical Vice-President of the Diocesan Synod;
- The Lay Vice-President of the Diocesan Synod;
- Three lay members of the Diocesan Synod and three clerical members of the Diocesan Synod to be elected by the Diocesan Synod;
- Up to three additional persons as may be co-opted by the Executive Committee from time to time.
## _**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.
**10**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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.
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:
- To seek a constructive and positive relationship with the people of the Diocese;
- To communicate effectively across all areas of Diocesan activity;
- To exercise and promote good stewardship of Diocesan resources to support growth;
- To provide mechanisms for evaluating performance through a regular programme of reflection and review.
**11**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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 2023**
The ongoing Cost-of-living crisis, together with the continued legacy of the COVID-19 pandemic had an impact on finances during 2023, for both the Norwich Diocesan Board of Finance Ltd and our parish incomes and expenditure. In particular, rising energy costs in church buildings and people’s ability to be able to give. This in turn has impacted on the ability to pay parish share.
Norwich Diocesan Board of Finance Ltd saw a slight decrease in parish share income during 2023. When compared with pre-pandemic levels this still shows a significant decrease (see later operational performance on page 13).
We carried an average of 15 unplanned vacancies in clergy posts (i.e. below budget), this is partly due to a lack of available people to apply for the positions. This has led to a temporary reduction in expenditure, which will not continue as the posts are filled, which we are starting to see happen during 2024.
## **Achievements during the year were:**
- Continued to work on a delivery programme to implement the Diocesan Vision and Priorities for the diocese;
- Implemented quarterly reporting of the Vision Enabling Strategy to highlight performance of our teams;
- Developed a financial strategy for the use of unapplied Total Returns, approved by the Bishop’s Council of Trustees;
- Completed the rollout of 70 contactless giving machines as part of the National Churches Digital Rollout Scheme;
- Continued to promote and encourage the benefits of the Parish Giving Scheme for regular gifts to our parishes; Currently, over 150 parishes have passed PCC resolutions to say that they want to offer The Parish Giving Scheme to their congregation and wider community;
- Further energy grants of over £100,000 were distributed to our PCC’s during 2023, provided from Archbishops’ Council funding. This is in addition to over £320,000 paid in January 2023, to support with the impact of rising energy costs and to provide Warm Spaces;
- We made several successful applications to support the Diocesan Vision and Priorities, in particular, for staffing to support mission and ministry, Net Zero Carbon and environmental issues.
- The Church Buildings Commission published its report, which following endorsement by Bishop’s Council of Trustees, led to work exploring the expansion of the Diocesan churches Trust and a new Cultural and Heritage Partnership.
**12**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- continued**
## **Achievements and performance (continued)**
- A series of Treasurers workshops were held covering topics such as Parish Returns, data and dashboards, the Parish Accounts workbook (PAW), banking issues, Gift Aid and year-end processes. These were well attended and have continued in 2024;
- A Residential Property review continued during 2023, as we are mindful that a large proportion of the houses for our Clergy are becoming expensive to live in and impacting their wellbeing. This project, which will also contribute to our aim to achieve Net Zero Carbon by 2030, will continue in the forthcoming years;
- Our website was refreshed to make online contact easier and new resources for parishes were released, such as in GDPR, to provide easy to use templates for local application.
## _**Operational performance**_
Norwich Diocesan Board of Finance Limited received 82.4% of parish share requested for the year of £8.065m, a shortfall of £1.421m. This is a decrease of £34k or 0.51% when compared with 2022 receipts.
The operating deficit at company level for 2023 is £87k (after adjusting for FRS102 pension adjustments, nonoperational property surpluses and the transfer of funds to restricted CPR projects, see page 7).
Parish Support Team vacancies carried during 2022 were filled during 2023. As previously mentioned, there were an average of 15 unplanned clergy vacancies, which when the posts are filled, will increase costs. Clergy housing repair and maintenance costs increased by over £700k during 2023, due to a catch-up of works required and environmental improvements.
Other steps taken to mitigate the level of deficit were:
- we secured strategic ministry funding to fund two Posts of First Responsibility at Launditch and Upper Nar and Kings Lynn St John;
- worked with new investment advisors to receive improved returns, the impact of which will be seen in 2024;
- A new telephone system was implemented, securing significant cost savings;
- procurement savings are actively sourced;
- income and expenditure is reported monthly, with detailed variance analysis to enable timely action and decisions.
## _**Investment performance – overall performance**_
The overall value of Diocesan investment assets increased by £1,125,000 during 2023, as compared with an increase of £6,467,000 in 2022. 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. The increase in 2023 relates to equity and fixed interest funds. In 2023 the operational activities of the Diocese were financed by £692,000 from interest and dividends (2022: £726,000).
## _**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 £816,000 (2022: £808,000).
Investment in equity and fixed interest funds were valued at £10.6 million at 31 December 2023 (2022: £10.1 million) The unrealised gain in the value of investments during the year amounted to £211,000 (2022: unrealised loss £1,352,000). Dividends and interest receivable amounted to £298,000 (2022: £413,000).
## _**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 £8.1 million at 31 December 2023 (2022: £7.4 million), an increase of £700,000 or 9.5%. Dividends and interest receivable amounted to £394,000 (2022: £313,000).
## _**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 2023 were £394,000 (2022: £416,000).
**13**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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 22 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 million (2022: £13.7 million) and expenditure amounted to £12.9 million (2022: £12.2 million).
The Statement of Financial Activities (SOFA) for the year shows net income of £186,000 (2022: net income £1,452,000) 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.
Two restricted funds showed very small deficit balances, Church Planting and Revitalisation £(5)k and Spire Support Services Limited £(1)k. Church Planting and Revitalisation will be covered by future grants for Strategic Development and there is a business plan to support future profitable trading for Spire Support Services Limited. The accounts show an increase in the balance sheet total of £995,000. During the year, total fund balances increased to £163.2 million.
## _**Principal funding sources**_
Around 57% of the income of the Board comes from the Parish Share, 15% 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 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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 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 51 (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 2023, comprising the income funds freely available for general purposes (and which are not yet spent, committed or restricted) amounted to £5.8 million as compared with £5.9 million at the end of the previous year. Free reserves include free designated reserves of £122,000. 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 2023 amounted to £3.2 million (2022: £4.4 million). Total other restricted funds excluding tangible assets and long-term liabilities but including Glebe land at 31 December 2023 amounted to £64 million (2022: £63 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 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- continued**
## **Financial review (continued)**
## **c) Plans for the future**
- Continue to implement the Diocesan Vision and Priorities for the diocese;
- Refine and enhance quarterly reporting of the Vision Enabling Strategy to highlight performance of our teams;
- Implement the financial strategy for the use of unapplied Total Returns;
- Continue to promote and encourage the benefits of the Parish Giving Scheme for regular gifts to our parishes;
- Implement the residential property policies and strategy, including environmental impact;
- Run further workshops with our PCC Treasurers to share ideas and promote good practice;
- Support the Church of England’s intention to achieve Net Zero Carbon by 2030;
- Continue to review all areas of expenditure to maximise value for money offered;
- Collaborate with other dioceses to enhance the quality and resilience of our services;
- Continue to support the Diocesan Churches Trust, to help to discover an appropriate solution for Churches in very small communities, including the implementation of the recommendations from the Church Buildings Commission;
- Continue to support and develop the trading subsidiary companies, including implementation of new business plans.
## **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 and a training programme for committees is being established. 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 27. 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 2023**
## **THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023- 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 (including the Strategic 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Board will continue in operation.
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:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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 Rt. Revd Ian Bishop was appointed on 29 September 2023. Catherine Howe was appointed on 13 July 2023. Lindsey Rix-Broom resigned on 25 January 2024.
## **Auditor**
A resolution to re-appoint Lovewell Blake LLP as auditor of the Board will be proposed at the Annual General Meeting on 26 June 2024.
The Trustees’ report (incorporating Strategic Report) was approved by the Board on 10 June 2024. Signed by Order of the Board
**TIM SWEETING,** Secretary
**17**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **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 2023 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:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 December 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 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. 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:
- the information given in the Trustees’ Report, which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the 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 2023**
## **INDEPENDENT AUDITOR’S REPORT (continued)**
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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 group 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**
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:
- Enquiry of management and those charged with governance;
- Enquiry of entity staff compliance functions to identify any instances of non-compliance with laws and regulations;
- • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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
10 June 2024
**19**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2023**
||||*** Restricted Funds**|*** Restricted Funds**|*****|||
|---|---|---|---|---|---|---|---|
||||Benefice||Other|||
|||Unrestricted|Buildings|Stipends|Restricted|**Total Funds**|_Total Funds_|
||**Note**|Funds|& Pastoral|Fund|Funds|**2023**|_2022_|
|||£'000|£'000|£'000|£'000|**£'000**|_£'000_|
|**Income and endowments from**||||||||
|**Donations**|2|||||||
|Parish contributions||6,644|-|-|-|**6,644**|_6,678_|
|Archbishops' Council||343|-|1,226|198|**1,767**|_2,094_|
|Other donations||361|-|-|-|**361**|_297_|
|**Charitable activities**|3|784|2|2|-|**788**|_838_|
|**Other activities**|4|638|5|-|568|**1,211**|_1,198_|
|**Investments**|5|223|147|1,114|24|**1,508**|_1,534_|
|**Other sources**|6|-|281|484|2|**767**|_1,042_|
|**Total income**||8,993|435|2,826|792|**13,046**|_13,681_|
|**Expenditure on**||||||||
|**Raising funds**|7|-|-|144|584|**728**|_841_|
|**Charitable activities**|8|9,080|18|2,151|883|**12,132**|_11,388_|
|**Total expenditure**||9,080|18|2,295|1,467|**12,860**|_12,229_|
|**Net income/(expenditure) before**||||||||
|**investment gains**||(87)|417|531|(675)|**186**|_1,452_|
|**Net gains on investments**|13|64|146|846|27|**1,083**|_8,198_|
|**Net income/(expenditure)**|14|(23)|563|1,377|(648)|**1,269**|_9,650_|
|**Transfers between funds**|15|-|-|-|-|**-**|_-_|
|**Other recognised gains/(losses)**||||||||
|Adjustment of value linked loans|26|22|-|-|-|**22**|_(26)_|
|Actuarial (loss)/gain on defined benefit||||||||
|pension scheme|28|(296)|-|-|-|**(296)**|_1,036_|
|**Net movement in funds**||(297)|563|1,377|(648)|**995**|_10,660_|
|**Reconciliation of funds**||||||||
|Total funds at 1 January 2023||10,744|82,792|66,115|2,575|**162,226**|_151,566_|
|**Total funds at 31 December 2023**||10,447|83,355|67,492|1,927|**163,221**|_162,226_|
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 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2023**
|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**|2023
£'000
12,104
(12,860)
(756)
177
1,083
504
22
765
(296)
995|_2022_
_£'000_
_12,621_
_(12,229)_
_392_
_33_
_8,198_
_8,623_
_(26)_
_1,027_
_1,036_
_10,660_|
|---|---|---|
All income and expenditure relates to continuing activities
Total income comprises £8,834,000 for unrestricted funds and £3,270,000 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 £504,000 comprises £23,000 net deficit of Unrestricted Funds and £527,000 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|2023
£'000
13,046
(177)
(765)
12,104|_2022_
_£'000_
_13,681_
_(33)_
_(1,027)_
_12,621_|
|---|---|---|
The notes on pages 25 to 48 form part of these accounts.
**21**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
Company registration number: 88175
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED COMPANY BALANCE SHEET At 31 December 2023**
|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 2023
27|*** Restricted Funds ***
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
**2023**
_2022_
Funds & Pastoral
Fund
Funds
**Total**
_Total_
£'000
£'000
£'000
£'000
**£'000**
_£'000_
3,636
80,193
5,253
-
**89,082**
_87,903_
-
-
47,018
-
**47,018**
_47,021_
2,742
4,590
10,577
-
**17,909**
_16,807_
6,378
84,783
62,848
-
**154,009**
_151,731_
1,602
18
1,083
9
**2,712**
_1,842_
1,441
-
-
-
**1,441**
_1,635_
-
14
-
-
**14**
_14_
190
316
-
-
**506**
_472_
2,308
(1,716)
3,741
750
**5,083**
_7,804_
5,541
(1,368)
4,824
759
**9,756**
_11,767_
1,078
60
180
467
**1,785**
_2,930_
4,463
(1,428)
4,644
292
**7,971**
_8,837_
10,841
83,355
67,492
292
**161,980**
_160,568_
394
-
-
-
**394**
_416_
10,447
83,355
67,492
292
**161,586**
_160,152_
-
-
-
-
**-**
_-_
10,447
83,355
67,492
292
**161,586**
_160,152_
10,447
83,355
67,492
292
**161,586**
_160,152_|
|---|---|
The net movement in funds at company level was £1,434k (2022: £10,933k)
Approved by the Bishop's Council of Trustees on 10 June 2024 and signed on its behalf by
Chair Diocesan Secretary
**Mark Jeffries …………………….. Tim Sweeting ……………………..**
**22**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
Company registration number: 88175
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED BALANCE SHEET At 31 December 2023**
|**At 31 December 2023**||||||||
|---|---|---|---|---|---|---|---|
||||*** Restricted Funds**||*****|||
||||Benefice||Other|||
|||Unrestricted|Buildings|Stipends|Restricted|**2023**|_2022_|
||Notes|Funds|& Pastoral|Fund|Funds|**Total**|_Total_|
|||£'000|£'000|£'000|£'000|**£'000**|_£'000_|
|**Fixed Assets**||||||||
|Tangible assets|18|3,636|80,193|5,253|517|**89,599**|_88,419_|
|Investment assets||||||||
|Glebe holding|19|-|-|47,018|-|**47,018**|_47,021_|
|Investments|20|2,742|4,590|10,577|805|**18,714**|_17,586_|
|||6,378|84,783|62,848|1,322|**155,331**|_153,026_|
|**Current Assets**||||||||
|Stock|21|-|-|-|51|**51**|_26_|
|Debtors|22|1,602|18|1,083|255|**2,958**|_2,066_|
|Pension scheme asset|28|1,441|-|-|-|**1,441**|_1,635_|
|Balances with Church||||||||
|Commissioners||-|14|-|-|**14**|_14_|
|Central Board of Finance||||||||
|Deposit Fund||190|316|-|79|**585**|_548_|
|Cash at bank||2,308|(1,716)|3,741|3,717|**8,050**|_10,583_|
|**Creditors**- Amounts||5,541|(1,368)|4,824|4,102|**13,099**|_14,872_|
|falling due within one year|24|1,078|60|180|3,000|**4,318**|_4,595_|
|**Net Current Assets**||4,463|(1,428)|4,644|1,102|**8,781**|_10,277_|
|**Total Assets Less**||||||||
|**current liabilities**||10,841|83,355|67,492|2,424|**164,112**|_163,303_|
|**Creditors**- Amounts falling||||||||
|due after more than one year|25|394|-|-|497|**891**|_1,077_|
|**Net Assets excluding pension**||||||||
|**scheme liability**||10,447|83,355|67,492|1,927|**163,221**|_162,226_|
|**Defined benefit pension scheme**||||||||
|**liability**|28|-|-|-|-|**-**|_-_|
|**Net assets after pension liability**||10,447|83,355|67,492|1,927|**163,221**|_162,226_|
|**Fund Balances**||||||||
|At 31 December 2023 (page 20)|27|10,447|83,355|67,492|1,927|**163,221**|_162,226_|
Approved by the Bishop's Council of Trustees on 10 June 2024 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 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2023**
|**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 (advanced by)/repaid to the Board
Loans (repaid to)/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 2023
Cash and cash equivalents at 31 December 2023
**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) in stock
(Increase)/decrease in debtors
(Decrease) in creditors
FRS 102 Non-cash pension disclosures
**Net cash (used in)/provided by operating activities**
**Analysis of cash and cash equivalents/net debt (consolidated)**
**Cash and cash equivalents:**
Cash in hand
Current asset investments
**Borrowings:**
Due within one year
Total|2023
_2022_
£'000
_£'000_
(3,334)
_(971)_
1,508
_1,534_
(9)
_(8)_
2,923
_2,661_
(3,354)
_(1,748)_
14,171
_3,937_
(14,213)
_(2,206)_
1,026
_4,170_
(24)
_4_
(164)
_184_
(188)
_188_
(2,496)
_3,387_
11,145
7,758
8,649
_11,145_
186
_1,452_
16
_16_
9
_8_
(765)
_(1,027)_
(1,508)
_(1,534)_
(25)
_(17)_
(868)
_719_
(277)
_(167)_
(102)
_(421)_
(3,334)
_(971)_
At 1 January
At 31 December
2023
Cashflow
2023
£'000
£'000
£'000
10,583
(2,533)
8,050
562
37
599
11,145
(2,496)
8,649
(1,077)
186
(891)
10,068
(2,310)
7,758|
|---|---|
**24**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023**
## **1. Accounting policies**
The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (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.
- i) **Parish Share** is recognised as income of the year in respect of which it is receivable, which includes amounts received in respect of the year up to the following 31 January.
- ii) **Rent** receivable is recognised as income in the period to which it relates. Glebe rents are collected by the Board and the income, net of related expenditure, is paid by instalments to the Church Commissioners in accordance with the Endowments and Glebe Measures 1976. The amounts received by the Church Commissioners are then credited to the Stipends Fund. Glebe rents are shown gross in the Statement of Financial Activities.
iii) **Interest and dividends** are recognised as income when receivable.
- iv) **Grants** received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year.
- v) **Parochial fees** are recognised as income of the year to which they relate, which include assigned fees received in respect of the year up to the following 31 January.
- vi) **Donations** other than grants are recognised when receivable **.**
- vii) **Gains on disposal of fixed assets for the Board’s own use** (i.e. non-investment assets) are accounted for as other income. Losses on disposal of such assets are accounted for as other expenditure.
## **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.
- i) **Costs of raising funds** are constrained to costs relating to the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.
- ii) **Charitable expenditure** is analysed between contributions to the Archbishops’ Council, expenditure on resourcing mission and ministry in the parishes of the diocese and expenditure on education and Church of England schools in the diocese.
**25**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **1. Accounting policies (continued)**
- iii) **Grants payable** are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the Board, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
- iv) **Support costs** consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.
## v) **Pension contributions** .
## _**The 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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **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 and pastoral properties (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 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **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.
- **Unrestricted funds** are the Board’s corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the Bishop’s Council of Trustees. There are two types of unrestricted funds:
- **General funds** which the Board intends to use for the general purposes and
- **Designated funds** set aside out of unrestricted funds by the Board for a purpose specified by the Bishop’s Council of Trustees
**28**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **1. Accounting policies (continued)**
## **f) Fund balances (continued)**
- **Restricted funds** are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.
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 long-term going concern risks arising from the COVID-19 pandemic and cost-of-living increases, including cashflow, investment values and staffing, 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 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
|**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 82.4% of the allocation (2022: 84.4%)
**Archbishops' Council**
Lowest income communities and transition funding
Resourcing Ministerial Education
Strategic Development Funding
Sustainability Funding
Strategic Capacity Funding
Strategic Ministry Funding
SMMI Funding
Grant towards PCR2 costs
**Other donations**
Benefact Trust Grant
Anne French Memorial Trust
Keswick Hall Charity
Roof Alarm Appeal
Other donations
**3.**
**Income from Charitable activities**
Statutory fees and chaplaincy income
Other Board income
**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
**2023**
_2022_
£'000
£'000
£'000
£'000
**£'000**
_£'000_
8,065
-
-
-
**8,065**
_7,914_
(1,421)
-
-
-
**(1,421)**
_(1,236)_
6,644
-
-
-
**6,644**
_6,678_
-
-
1,226
-
**1,226**
_1,251_
-
-
-
82
**82**
_178_
-
-
-
116
**116**
_250_
-
-
-
-
**-**
_200_
96
-
-
-
**96**
_75_
230
-
-
-
**230**
_140_
11
-
-
-
**11**
_-_
6
-
-
-
**6**
_-_
343
-
1,226
198
**1,767**
_2,094_
111
-
-
-
**111**
_127_
125
-
-
-
**125**
_98_
68
-
-
-
**68**
_48_
-
-
-
-
-
_2_
57
-
-
-
**57**
_22_
361
-
-
-
**361**
_297_
589
-
2
-
**591**
_609_
195
2
-
-
**197**
_229_
784
2
2
-
**788**
_838_
597
5
-
14
**616**
_552_
-
-
-
243
**243**
_275_
-
-
-
261
**261**
_268_
-
-
-
50
**50**
_49_
41
-
-
-
**41**
_54_
638
5
-
568
**1,211**
_1,198_
64
147
280
24
**515**
_692_
159
-
18
-
**177**
_34_
-
-
816
-
**816**
_808_
223
147
1,114
24
**1,508**
_1,534_
-
281
484
2
**767**
_1,042_
-
281
484
2
**767**
_1,042_
8,993
435
2,826
792
**13,046**
_13,681_
*** Restricted Funds ***|
|---|---|
**30**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
|**For**|**the year ended 31 December 2023**|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||*** Restricted Funds ***||||||||||||||
||||Benefice||||||||Other|||||||
|||Unrestricted|Buildings|||Stipends|||||Restricted|**Total Funds**|||_Total Funds_|||
|||Funds|&|Pastoral||||Fund|||Funds||**2023**||||_2022_|
|||£'000||£'000||||£'000|||£'000||**£'000**||||_£'000_|
|**7.**|**Expenditure on raising funds**|||||||||||||||||
||**_Investment management costs_**|||||||||||||||||
||Glebe management charges|-||-||||144|||-||**144**||||_134_|
||**_Trading expenses_**|||||||||||||||||
||Property support services|-||-||||-|||274||**274**||||_335_|
||Easton development|-||-||||-|||261||**261**||||_323_|
||Commercial property|-||-||||-|||49||**49**||||_49_|
|||-||-||||144|||584||**728**||||_841_|
|**8.**|**Expenditure on charitable activities**|||||||||||||||||
||**_Contributions to Archbishop's Council_**|||||||||||||||||
||Training for ministry|351||-||||-|||-||**351**||||_334_|
||National Church responsibilities|271||-||||-|||-||**271**||||_269_|
||Grants and provisions|8||-||||-|||-||**8**||||_10_|
|||630||-||||-|||-||**630**||||_613_|
||**_Expenditure on resourcing ministry and_**|||||||||||||||||
||**_mission_**|||||||||||||||||
||Parish ministry:|||||||||||||||||
||Stipends and national insurance|2,347||-||||2,151|||-||**4,498**||||_4,680_|
||Pension contributions|1,025||-||||-|||-||**1,025**||||_1,248_|
||Housing costs|2,114||13||||-|||-||**2,127**||||_1,374_|
||Removal, resettlement and other grants|138||-||||-|||-||**138**||||_183_|
||Other expenses|161||-||||-|||-||**161**||||_129_|
|||5,785||13||||2,151|||-||**7,949**||||_7,614_|
||Support for parish ministry|2,219||5||||-|||1||**2,225**||||_2,095_|
||Resourcing Ministerial Education|-||-||||-|||96||**96**||||_172_|
||Roof Alarm Appeal|-||-||||-|||-||-||||_2_|
||Church Planting and Revitalisation|-||-||||-|||311||**311**||||_354_|
|||2,219||5||||-|||408||**2,632**||||_2,623_|
||**_Expenditure on education_**|||||||||||||||||
||Support for church schools|446||-||||-|||-||**446**||||_454_|
||Grants|-||-||||-|||475||**475**||||_84_|
|||446||-||||-|||475||**921**||||_538_|
||Total expenditure on charitable activities|9,080||18||||2,151|||883||**12,132**||||_11,388_|
||**Total expenditure**|9,080||18||||2,295|||1,467||**12,860**||||_12,229_|
|||||||||||||||||||
|||||||||||||||||||
|**9.**|**Analysis of expenditure**|||||||||||||||||
||**including allocation of support costs**||Activities
undertaken
directly
£'000|||Grant
funding of
activities
£'000|||||Support
costs
£'000||**Total**
**2023**
**£'000**||||_Total_
_2022_
_£'000_|
||Raising funds|||728||||-|||-||**728**||||_841_|
||Contributions to Archbishop's Council|||630||||-|||-||**630**||||_613_|
||Resourcing Ministry and Mission|||8,821||||58|||1,672||**10,551**||||_10,193_|
||Education, Youth Children and Families|||446||||475|||-||**921**||||_538_|
||Church Buildings Commission|||13||||-|||-||**13**||||13|
||Parish Giving Scheme|||17||||-|||-||**17**||||31|
|||||10,655||||533|||1,672||**12,860**||||_12,229_|
|||||||||||||||||||
**31**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
|**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 2023**|||||||
||||*** Restricted Funds**||*****|||
||||Benefice||Other|||
|||Unrestricted|Buildings|Stipends Restricted||**Total Funds**|_Total Funds_|
|||Funds|& Pastoral|Fund|Funds|**2023**|_2022_|
|||£'000|£'000|£'000|£'000|**£'000**|_£'000_|
|**10.**|**Analysis of support costs**|||||||
||Central administration and office property costs|1,492|-|-|-|1,492|_1,276_|
||(inc. final salary pension adjustments and|||||||
||externally funded roles)|||||||
||Governance:|||||||
||Amounts paid to auditor:|||||||
||External audit|29|-|-|7|36|_35_|
||Accountancy|6|-|-|-|6|_7_|
||Registrar, Chancellor, PCR2 review and HR|132|-|-|-|132|_144_|
||Synodical costs|12|-|-|-|12|_8_|
|||1,671|-|-|7|1,678|1,470|
|**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
Church Planting and Revitalisation
Education
CEE grants to schools and academies||Individuals
£'000
-
59
138
35
-
-
-
-
-
-
8
-
-
-|Institutions
£'000
571
-
-
61
-
46
28
5
-
7
-
-
3
48
476||**Total**
**2023**
**£'000**
571
59
138
96
-
46
28
5
-
7
8
-
3
48
476|_Total_
_2022_
_£'000_
_510_
_103_
_183_
_172_
_2_
_83_
_18_
_4_
_2_
_7_
_9_
_8_
_3_
_52_
_82_|
||||240|1,245||1,485|_1,238_|
|**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||||2023
£'000
1,378
130
-
198
65
10||_2022_
£'000
_1,293_
_129_
_3_
_161_
_173_
_10_|
||||||1,781||_1,769_|
**32**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **12. Staff costs (continued)**
|2023
The average head count of total employees:
53
The average number of employees, based on full-time equivalents were as follows:
Resourcing ministry
Support for parish ministry (externally funded 2023: 6, 2022: 4)
25
Safeguarding
3
Counsellor
1
Property
5
Parochial lay staff
3
Church Planting and Revitalisation
4
Education, youth, families and children
6
Spire Support Services Limited
4
51
The number of staff whose emoluments (including benefits in kind but excluding pension contributions) exceeded
2023
£60,000 - £70,000
2
£70,000 - £80,000
1
£80,000 - £90,000
1|_2022_
_50_
_20_
_3_
_1_
_3_
_3_
_5_
_6_
_4_
_45_
£60,000 were:
_2022_
_1_
_1_
_2_|
|---|---|
Pension contributions amounting to £33k 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 2023 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 £363.7k (2022: £384.7k).
## **Trustees Remuneration**
No remuneration has been paid to any member of the Bishop's Council of Trustees in their capacity as Trustees (2022: £NIL). Two members were reimbursed for travel and incidental costs incurred in undertaking their Trustee duties totalling £47 (2022: two members £95).
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. Steven Betts|Yes|Yes|
|The Rt. Revd. Ian Bishop|No|Yes|
|The Ven. Catherine Dobson|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|
|The Rt. Revd. Dr Alan Winton (resigned 30 April 2023)|No|Yes|
**33**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
**For the year ended 31 December 2023**
## **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|2023
_2022_
145
_155_
£'000
_£'000_
4,151
_4,317_
346
_369_
1,083
_1,482_
5,580
_6,168_|
|---|---|
The stipends of the Diocesan Bishop and two Suffragan Bishops are funded by the Church Commissioners and are in the range of £39,651 to £48,972. The annual rate of stipend, funded by the Board, paid to Archdeacons in 2023 was in the range of £38,672 to £39,058 and other clergy who were members of the Bishop's Council of Trustees were paid in the range £27,270 to £28,634. The estimated value to the occupant, gross of income tax and national insurance, of church provided housing in 2023 is an average of £15,000 p.a.
## **13. Net gains/(losses) on investments**
|**Investments (note 20)**
Realised
Unrealised - listed
- unlisted
**Glebe Holding (note 19)**
Realised
Unrealised
**Net gains/(losses)**
**14.**
**Net income/(expenditure)**
This is after charging:
Depreciation
**15.**
**Analysis of transfers between funds**
None|2023
_2022_
£'000
_£'000_
34
_(282)_
401
_(2,224)_
1
_(175)_
647
_878_
-
_10,001_
1,083
_8,198_
2023
_2022_
£'000
_£'000_
16
_16_
Total
2023
£'000
-
-|
|---|---|
**34**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
|**16.**
**Endowments and Glebe Measure, 1976**
**Income and Expenditure Account**
**Income (note 5)**
Glebe rents and interest receivable
**Expenditure (note 7)**
Repairs
Surveyor's and Agent's fees
Legal and other administration charges
Surplus for the year|£'000
818
-
55
89
144
674
2023|_£'000_
_811_
_1_
_56_
_77_
_134_
_677_
_2022_|
|---|---|---|
## **17. Taxation**
The Board has no liability to corporation tax or capital gains tax.
|**18.**
**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 2023
485
5,875
78,390
755
2,882
Additions
-
827
2,512
-
-
Disposals
-
(1,449)
(709)
-
-
**At 31 December 2023**
485
5,253
80,193
755
2,882
**Accumulated depreciation**
At 1 January 2023
-
-
-
-
-
Disposals
-
-
-
-
-
Charge for the year
-
-
-
-
-
**At 31 December 2023**
-
-
-
-
-
**Net book value**
**At 31 December 2023**
**485**
**5,253**
**80,193**
**755**
**2,882**
At 31 December 2022
_485_
_5,875_
_78,390_
_755_
_2,882_
**Company**
**At 31 December 2023**
**485**
**5,253**
**80,193**
**240**
**2,882**
At 31 December 2022
_485_
_5,875_
_78,390_
_240_
_2,882_
2023
£'000
The net book amount comprises:
Assets used, or intended to be used, predominantly
87,688
for direct charitable purposes
Assets used for administration and other purposes
1,910
89,598
* Freehold Property *|
Office
**2023**
and other**Consolidated**
equipment
**Total**
£'000
£'000
171
88,558
15
3,354
-
(2,158)
186
89,754
139
139
-
-
16
16
155
155
**31**
**89,599**
_32_
_88,419_
**29**
**89,082**
_31_
_87,903_
_2022_
_£'000_
_86,507_
_1,912_
_88,419_|
|---|---|
Commercial property is initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
**35**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **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 2023
Additions
Disposals
Valuation as at 31 December 2023
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2023
Subsequent additions at cost
Disposals
Valuation as at 31 December 2023|Glebe Property (mainly residential houses) comprises:
Houses at valuation as at 1 January 2023
Additions
Disposals
Valuation as at 31 December 2023
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2023
Subsequent additions at cost
Disposals
Valuation as at 31 December 2023|2023
£'000
5,875
827
(1,449)
5,253
78,390
2,512
(709)
80,193|_2022_
_£'000_
_5,875_
_-_
_-_
_5,875_
_78,313_
_1,711_
_(1,634)_
_78,390_|
|---|---|---|---|
|||||
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 2023
Additions
Disposal proceeds
Profit on disposal
Revaluation adjustment
Valuation at 31 December 2023
Company
Valuation at 31 December 2023||£'000
47,021
-
(650)
647
-
47,018
47,018|
||||
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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **20. Fixed asset investments**
**----- Start of picture text -----**
Profit/(loss)
At 1 January Disposal on Increase/(decrease) in At 31 December
2023 Additions proceeds Disposal Market value 2023
£'000 £'000 £'000 £'000 £'000 £'000
Unrestricted Funds
Listed investments 1,543 2,497 (1,490) 16 48 2,614
Unlisted investments 100 - - - - 100
Cash 662 - (634) - - 28
2,305 2,497 (2,124) 16 48 2,742
Restricted Funds
Listed investments 13,127 11,716 (9,592) 51 353 15,655
Unlisted investments 1,323 - (1,152) (33) 1 139
Cash 831 - (653) - - 178
15,281 11,716 (11,397) 18 354 15,972
Total 17,586 14,213 (13,521) 34 402 18,714
Company 16,807 13,620 (12,927) 31 378 17,909
2023 2022
The unlisted securities comprise:- £'000 £'000
Shares in the Central Board of Finance -
Investment Fund 44 43
-
Property Fund 1,185
(valued as per the Central Board of Finance)
COIF Charities Investment Fund Income shares
(valued as per COIF Charity Funds) 95 95
Investment in Eastern Landowners Consortium 97 97
Investment in CMCU shares 3 3
239 1,423
The historical cost of the above assets is as follows:
Listed securities 16,759 12,641
Unlisted securities 140 1,140
Cash 206 1,493
17,105 15,274
**----- 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|2023
_2022_
£'000
_£'000_
-
_1,641_
-
_1,343_
-
_2,446_
-
_5,430_|
|---|---|
**37**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
|**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**
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)
**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**
Amounts owed by subsidiary undertakings
Amounts falling due after more than one year
Interest payable on loans due by the Board|**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**
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)
**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**
Amounts owed by subsidiary undertakings
Amounts falling due after more than one year
Interest payable on loans due by the Board|**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**
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)
**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**
Amounts owed by subsidiary undertakings
Amounts falling due after more than one year
Interest payable on loans due by the Board|2023
_2022_
£'000
_£'000_
51
_26_
2023
_2022_
£'000
_£'000_
323
_339_
86
_79_
240
_303_
137
_188_
1,429
_460_
2,215
_1,369_
8
_7_
238
_217_
2,461
_1,593_
497
_473_
2,958
_2,066_
2023
_2022_
£'000
_£'000_
497
_473_
497
473
497
_473_
2023
_2022_
£'000
£'000
40
_36_
604
_1,186_
1,141
_1,708_
1,785
_2,930_
13
_19_
1,139
_543_
1,381
_1,103_
4,318
_4,595_
2023
_2022_
£'000
_£'000_
891
_1,077_
2023
_2022_
£'000
_£'000_
394
_416_
497
_661_
891
_1,077_
891
_1,077_
9
_8_|2023
_2022_
£'000
_£'000_
51
_26_
2023
_2022_
£'000
_£'000_
323
_339_
86
_79_
240
_303_
137
_188_
1,429
_460_
2,215
_1,369_
8
_7_
238
_217_
2,461
_1,593_
497
_473_
2,958
_2,066_
2023
_2022_
£'000
_£'000_
497
_473_
497
473
497
_473_
2023
_2022_
£'000
£'000
40
_36_
604
_1,186_
1,141
_1,708_
1,785
_2,930_
13
_19_
1,139
_543_
1,381
_1,103_
4,318
_4,595_
2023
_2022_
£'000
_£'000_
891
_1,077_
2023
_2022_
£'000
_£'000_
394
_416_
497
_661_
891
_1,077_
891
_1,077_
9
_8_|2023
_2022_
£'000
_£'000_
51
_26_
2023
_2022_
£'000
_£'000_
323
_339_
86
_79_
240
_303_
137
_188_
1,429
_460_
2,215
_1,369_
8
_7_
238
_217_
2,461
_1,593_
497
_473_
2,958
_2,066_
2023
_2022_
£'000
_£'000_
497
_473_
497
473
497
_473_
2023
_2022_
£'000
£'000
40
_36_
604
_1,186_
1,141
_1,708_
1,785
_2,930_
13
_19_
1,139
_543_
1,381
_1,103_
4,318
_4,595_
2023
_2022_
£'000
_£'000_
891
_1,077_
2023
_2022_
£'000
_£'000_
394
_416_
497
_661_
891
_1,077_
891
_1,077_
9
_8_|2023
_2022_
£'000
_£'000_
51
_26_
2023
_2022_
£'000
_£'000_
323
_339_
86
_79_
240
_303_
137
_188_
1,429
_460_
2,215
_1,369_
8
_7_
238
_217_
2,461
_1,593_
497
_473_
2,958
_2,066_
2023
_2022_
£'000
_£'000_
497
_473_
497
473
497
_473_
2023
_2022_
£'000
£'000
40
_36_
604
_1,186_
1,141
_1,708_
1,785
_2,930_
13
_19_
1,139
_543_
1,381
_1,103_
4,318
_4,595_
2023
_2022_
£'000
_£'000_
891
_1,077_
2023
_2022_
£'000
_£'000_
394
_416_
497
_661_
891
_1,077_
891
_1,077_
9
_8_|
|---|---|---|---|---|---|---|
|||||1,785
13
1,139
1,381
4,318|||
||||||||
||||||||
**38**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
|**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
Bishops' Fund for Readers in Training
Burning Bush Barn
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**
**2023**
**Income Expenditure**
**Transfers**
**losses**
**2023**
£'000
£'000
£'000
£'000
£'000
£'000
9,890
8,992
(9,063)
-
(210)
9,609
178
-
-
-
-
178
85
-
-
-
-
85
591
1
(17)
-
-
575
854
1
(17)
-
-
838
**10,744**
**8,993**
**(9,080)**
-
**(210)**
**10,447**
66,115
2,826
(2,295)
-
846
67,492
82,792
435
(18)
-
146
83,355
242
-
-
-
-
242
7
-
-
-
-
7
7
-
-
-
-
7
54
82
(96)
-
-
40
190
116
(311)
-
-
(5)
30
554
(585)
-
-
(1)
1,943
37
(475)
-
25
1,530
102
3
-
-
2
107
2,575
792
(1,467)
-
27
1,927
**151,482**
**4,053**
**(3,780)**
-
**1,019**
**152,774**
**162,226**
**13,046**
**(12,860)**
-
**809**
**163,221**|
|---|---|
The Board's Capital and General Funds includes £990,000 relating to capital (2022: £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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **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.
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 were £1.8m (previously £3.2m) the revised grant funding from Archbishops' Council was £1.23m (previously £1.98m), with the balance being met from Diocesan funds. The project ended as planned at 31 December 2023, with an underspend on the re-set budget of c.£300k. We requested and have obtained approval from Archbishops' Council to extend the programme for a further 12 months to utilise the underspend to strengthen and extend existing ministries showing signs of fruitfulness. We will do this by investing in Youth Ministry, sustaining Sports Ministry, developing Youth Chaplaincy and creating a mission fund in five project areas.
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 this means 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. The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions were nil.
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 from 2013 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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **28. Pension costs (continued)**
## **The Church of England Funded Pension Scheme (continued)**
Following the finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, as the Scheme was fully funded. Previous defictit recovery contributions under the recovery plan were as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|% of pensionable stipends|1 January 2021 to|1 January 2023 to|
|31 December 2022|31 December 2023|
|Deficit repair contributions|7.1%|Nil|
**----- End of picture text -----**
An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022, and remained in place until 31 December 2022.
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 and 31 December 2023 was nil. The movement in the balance sheet liability over 2022 and 2023 is set out in the table below.
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£'000|£'000|
|Balance sheet liability at 1 January|-|293|
|-|
|Deficit contribution paid|(167)|
|-|-|
|Interest cost (recognised in Statement of Financial Activities)|
|-|
|Remaining change to the balance sheet liability* (recognised in SoFA)|(126)|
|-|-|
|Balance sheet liability at 31 December|
**----- End of picture text -----**
* Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.
No assumptions are needed for December 2023 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**
**----- Start of picture text -----**
|||||
|---|---|---|---|
|December 2023|December 2022|December 2021|
|Discount rate|n/a|n/a|0% pa|
|Price inflation|n/a|n/a|n/a|
|Increase to pensionable payroll|n/a|n/a|-1.5% pa|
**----- End of picture text -----**
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 31 March 2022, this indicated a surplus of £429k when comparing the valuation of the Scheme's assets with the technical provisions of the Scheme. The valuation has been updated to 31 December 2023 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:**
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£'000|£'000|
|Present value of funded obligations|1,694|1,619|
|Fair value of plan assets|3,135|3,254|
|Net defined benefit asset|1,441|1,635|
**----- End of picture text -----**
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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **28. Pension costs (continued)**
## **The Board's Pension Scheme (continued)**
In addition to the assets reported above, 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) recognised in Statement of Financial Activities
Actual return on plan assets|For year to
_For year to_
31 December 2023
_31 December 2022_
£'000
_£'000_
5
_8_
18
_-_
76
_45_
(154)
_(54)_
(55)
_(1)_
(94)
_194_|
|---|---|
## **Changes in the present value of the defined benefit obligation are as follows:**
|Opening defined benefit obligation
Current service cost
Interest expense
Actuarial loss
Benefits paid
Closing defined benefit obligation|For year to
31 December 2023
£'000
1,619
5
76
48
(54)
1,694|
|---|---|
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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **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
Expenses paid
Contributions by employer
Benefits paid
Closing fair value of plan assets|For year to
31 December 2023
£'000
3,254
154
(248)
(18)
47
(54)
3,135|
|---|---|
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:**
||||2023|_2022_|
|---|---|---|---|---|
||||% 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**||2023|_2022_|
||Discount rate||4.50% pa|_4.75% pa_|
||RPI inflation assumption||3.10% pa|_3.20% pa_|
||CPI inflation assumption||2.80% pa|_2.90% pa_|
||Future salary increases||3.10% pa|_3.20% pa_|
||Pension increases in payment||||
||(RPI - maximum 5%)||2.90% pa|_2.90% pa_|
||(CPI - maximum 2.5% )||1.90% pa|_1.80% pa_|
|**b)**|**Demographic assumptions**||||
||Assumed life expectancy in years, on retirement at 65:||2022|_2022_|
||Retiring today|Males|21.1|_21.5_|
|||Females|23.6|_24.0_|
||Retiring in 20 years|Males|22.3|_22.8_|
|||Females|25|_25.4_|
**43**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **29. Redundant Churches**
The Board was responsible for the care and maintenance of 3 redundant churches during the year (2022: 3). The cost to the Board was £4,647 (2022: £4,212).
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 2023
Grants received from DFE
Payments on behalf of Schools
Cash held at 31 December 2023|2023
_2022_
£'000
_£'000_
774
_477_
180
_605_
(566)
_(308)_
388
_774_|
|---|---|
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 £3,914 was recharged to Norwich Diocesan Board of Finance Limited by the Horstead Centre in respect of Soulshaper, Clergy family fun day and a CYF activity day (2022: £3,201), with £3,003 outstanding at the year end (2022: £Nil). Nothing was charged to the Horstead Centre by the Board in 2023 (2022: nil).
The Board operates closely with The Diocese of Norwich Education and Academies Trust (DNEAT), with some of the Trustees of the Board being Members of the Trust and some of the employees of the Board being Trustees of the Trust. £3,009 (2022: £5,752) was recharged to The Diocese of Norwich Education and Academies Trust (DNEAT) in 2023 by the Consolidated Education Endowments Fund (CEE) and the Norwich Diocesan Board of Finance Ltd, with £1,730 outstanding at the year end (2022: nil). £172,602 (2022: £69,031) was charged to the Norwich Diocesan Board of Finance and CEE with respect to contribution to services and contributions to closed school sites with £171,000 (2022: 63,371) outstanding at the year end.
The Board operates closely with St Benet's Multi-Academy Trust, with some of the Trustees of the Board being Members of the Trust and some of the employees of the Board being Trustees of the Trust. Nothing (2022: £2,360) was recharged to St Benet's Multi-Academy Trust by the Norwich Diocesan Board of Finance Ltd in 2023, with nothing (2022: £400) outstanding at the year end. £253,215 (2022: £nil) was charged to the Norwich Diocesan Board of Finance and CEE with respect to contribution to services and training costs with £252,000 (2022: nil) outstanding at the year end.
The Diocese of Norwich Education Support Company (DONESC) supports both The Diocese of Norwich Education and Academies Trust and St Benet's Multi-Academy Trust. Nothing was recharged to The Diocese of Norwich Education Support Company (DONESC) (2022: £8,432), with £nil outstanding at the year end (2022: £nil). £82,414 was charged by DONESC with respect to Headteacher recruitment support, RE Lead Support, and NPQ support (2022: £20,000), with £27,425 outstanding at the year end (2022: £20,000).
Some of the Trustees of the Board are also Trustees of the Anne French Memorial Trust. £46,761 was recharged to The Anne French Memorial Trust in 2023 (2022: £54,286), with £14,304 outstanding at the year end (2022: £14,028). Grants totalling £35,000 were given towards clergy housing costs and school chaplaincy costs, this income is released to match expenditure. Deferred grants from 2021 and 2022 totalling £48,891, given towards Generous Giving Advisors and Strategic Programme Management, have been released to match expenditure. Deferred grants from 2021 and 2022 totalling £50,230 towards energy efficiency housing costs and a pastoral issue have been deferred again to 2024.
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. Some of the Trustees of the Board are also trustees of this Trust. Nothing was due at the year end to the Trust by the Norwich Diocesan Board of Finance Limited in respect of fees (2022: £nil).
**44**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
## **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.|||
|---|---|---|
||2023|_2022_|
||£'000|_£'000_|
|Net (loss)/profit (before tax and Corporate Gift Aid) for the year ended 31 December|
(1)|_30_|
|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)|2023
£'000
137|_2022_
_£'000_
_188_|
|Amounts owing by Subsidiary undertaking at 31 December 2022 (debtor)|137|_188_|
|Shareholders Equity/(Deficit)|**-**|**-**|
||||
During the year Spire Support Services Limited collected rental income net of 8% commission plus VAT of £464,502. Spire Support Services charged Norwich Diocesan Board of Finance Limited (inc. CEE) £18,105 inc VAT for design, surveying services and Church Quinquennials (2022: £106,198), with £611 outstanding at the year end (2022: £12,879). Norwich Diocesan Board of Finance Limited charged Spire Support Services £20,316 for management oversight, financial services, office rental and loan interest (2022: £21,380). The accounts for Spire Support Services Limited for the year ended 31 December 2023 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 period ended 31 December|2023
_2022_
£'000
_£'000_
261
**_-_**|
|---|---|
£261,133 will be paid in corporate gift aid to Norwich Diocesan Board of Finance Ltd within nine months of the year end. The accounts for NDBF Easton Limited for the year ended 31 December 2023 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|2023
_2022_
£'000
_£'000_
29
_29_|
|---|---|
During the year Norwich Diocesan Board of Finance Limited collected rental income and expenses net of VAT of £49,626 on behalf of Norwich Glebe Property Limited, paid costs of £3,779 (2022: £3,490) and charged loan interest of £16,661 (2022: £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 2023 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 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023**
|**34.**
**Financial Instruments**
**_Financial assets_**
Measured at fair value through net income/expenditure:
Fixed asset listed investments (note 20)
**35.**
**Deferred income**(note 24)
Deferred income brought forward at 1 January 2023
Deferred income (released)/added during the year
Deferrred income carried forward at 31 December 2023
The carrying amounts of the company's financial instruments are as follows:|2023
_2022_
£'000
_£'000_
18,269
_14,670_
2,531
_2,889_
(189)
_(358)_
_2,342_
_2,531_|
|---|---|
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 2023**
## **NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **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/(expenditure) before**
**investment gains**
**Net gains on investments**
**Net income/(expenditure)**
**Transfers between funds**
**Other recognised gains/(losses)**
Adjustment of value linked loans
Actuarial gain 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**
Funds & Pastoral
Fund
Funds
**2022**
£'000
£'000
£'000
£'000
**£'000**
6,678
-
-
-
**6,678**
415
-
1,251
428
**2,094**
295
-
-
2
**297**
835
1
2
-
**838**
588
3
-
607
**1,198**
124
165
1,221
24
**1,534**
-
1,027
-
15
**1,042**
8,935
1,196
2,474
1,076
**13,681**
-
-
134
707
**841**
8,669
8
2,099
612
**11,388**
8,669
8
2,233
1,319
**12,229**
266
1,188
241
(243)
**1,452**
(327)
(704)
9,356
(127)
**8,198**
(61)
484
9,597
(370)
**9,650**
(1)
-
-
1
**-**
(26)
-
-
-
**(26)**
910
-
126
-
**1,036**
822
484
9,723
(369)
**10,660**
9,922
82,308
56,392
2,944
**151,566**
10,744
82,792
66,115
2,575
**162,226**|
|---|---|
**47**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
**NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **For the year ended 31 December 2023**
## **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 2023
**Total funds at 31 December 2023**|*** Restricted Funds ***
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
**Total Funds**
_Total Funds_
Funds & Pastoral
Fund
Funds
**2023**
_2022_
£'000
£'000
£'000
£'000
**£'000**
_£'000_
6,644
-
-
-
**6,644**
_6,678_
343
-
1,226
198
**1,767**
_2,094_
361
-
-
-
**361**
_297_
784
2
2
-
**788**
_838_
638
5
-
-
**643**
_591_
223
147
1,114
-
**1,484**
_1,510_
-
281
484
-
**765**
_1,027_
8,993
435
2,826
198
**12,452**
_13,035_
-
-
144
-
**144**
_134_
9,080
18
2,151
407
**11,656**
_11,303_
9,080
18
2,295
407
**11,800**
_11,437_
(87)
417
531
(209)
**652**
_1,598_
64
146
846
-
**1,056**
_8,325_
(23)
563
1,377
(209)
**1,708**
_9,923_
-
-
-
-
**-**
_-_
22
-
-
-
**22**
_(26)_
(296)
-
-
-
**(296)**
_1,036_
(297)
563
1,377
(209)
**1,434**
_10,933_
10,744
82,792
66,115
501
**160,152**
_149,219_
10,447
83,355
67,492
292
**161,586**
_160,152_|
|---|---|
**48**
Norwich Diocesan Board of Finance Limited **Annual Report and Financial Statements 2023**
Diocesan House, 109 Dereham Road, Easton, Norwich NR9 5ES Tel: 01603 880853 Email: info@dioceseofnorwich.org www.dioceseofnorwich.org