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2024-12-31-accounts

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

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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

REFERENCE AND ADMINISTRATIVE INFORMATION

The Bishop’s Council of Trustees Mark Jeffries (Chairman) (Board of Directors) Mark Allbrook (resigned 9 January 2025) as at 17 June 2025 The Ven. Steven Betts The Rt. Revd. Ian Bishop Nick Bolton (appointed 2 November 2024) The Very Revd. Dr Andrew Braddock Lindsey Rix-Broom (resigned 25 January 2024) Paul Cracknell The Ven. Catherine Dobson Virginia Edgecombe Catherine Howe Caroline Hutton (appointed 9 January 2025) The Ven. Keith James Kandara Kammoun Susan Martin (resigned 2 November 2024) Michael Newey (appointed 2 November 2024) 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 (resigned 2 November 2024) The Rt. Revd. Graham Usher Thompson Zulu (resigned 2 November 2024) Diocesan Secretary (Chief Executive) Tim Sweeting Director of Finance Susan Bunting BFP FCA (to 23 December 2024) Don McCallum (from 2 January 2025) 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 LGT, 14 Cornhill, London EC3V 3NR Stockbrokers 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

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

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

The Diocese

Diocesan Synod

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

Deanery Synod

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

The Bishop’s Council

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

Parochial Church Council (PCC)

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

Parishes

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

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

4

CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2024

Introduction

It is always pleasing to report a set of financial results which improve on the previous year’s performance. That we are able to do so reflects not only relentless work in parishes to ensure they have the wherewithal to meet parish share, but also the great work across our highly talented Parish Support Team. Both are much appreciated.

The end of the 2024 financial year coincided with our long-standing Director of Finance, Susan Bunting, leaving the team to take up a new role with the World Land Trust. We owe her a huge debt of gratitude for all she did, first in her role as auditor and subsequently leading the finance team where she ensured the sound management of the Diocese’s finances. The Director of Finance baton has been passed to Don McCallum whom we are delighted to welcome to the team. We look forward to him bringing to bear his wide range of previous financial experience to build on Susan’s substantial legacy.

Having recorded the improvement in the financial position in 2024, it is important to note that the reduction in operating deficit reflects the benefits of implementing the residential property review. There were also savings against the clergy stipends budget as a result of not filling some vacancies despite valiant efforts to do so.

Income and expenditure

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 annual cost of ministry in the Diocese in 2025 is £72,595 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, but are helping to meet the cost of a ministry to the whole parish, including those who come to church regularly and those who do not.

In 2024 the Diocese received a total of £6.7m in Parish Share, some 80.6% of the amount requested. This is an impressive achievement and an increase on 2023 but remains below the pre-pandemic level of £7m and was a lower proportion of the amount requested than in 2023 (82.4%). In common with other dioceses, we continue to feel the impact of financial uncertainty and the rising cost of living which are particularly apparent at parish level.

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 year-end 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 2024, excluding year end pension scheme revaluations, movement in stock market valuations, property sales, support of restricted projects, and subsidiary company results, is £77k (2023: £87k).

The results reflect the continuing efforts to put the finances of the Diocese on a sustainable footing, but some caution is required. I highlight the following:

We have three subsidiary companies which were formed to provide additional sources of income for the Diocese. The first, Spire Support Services Limited, incurred increased costs during 2024 to ensure the company is adequately staffed and can grow in accordance with its revised business plan. It generated a small profit of £23k (2023: £1k loss). We are hopeful that the additional investment will prove fruitful in 2025 and beyond. Our other trading subsidiaries, NDBF (Easton) Limited and Norwich Glebe Property Limited, also delivered trading surpluses. Details are in note 33 on page 45 of these statements. Surpluses will be transferred to the Diocese under the corporate gift aid scheme.

5

CHAIRMAN’S STATEMENT IN ANNUAL REPORT 2024

We saw better returns on the Diocese’s investments during 2024 with dividends and interest receivable rising to £881k (2023: £692k). This relieves some of the pressure on Parish Share. Returns will always remain volatile as the markets react to UK and worldwide events, especially during the first quarter of 2025. The Asset Management Committee continues to identify opportunities to increase the return on the assets under the control of the Board of Finance.

Assets and liabilities

An independent actuary valued the staff pension scheme (which was closed to new members in 2001), at £1.797m (2023: £1.441m), an increase of £356k. This is not a cash asset. We have a professional trustee 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 2024, excluding the contribution from trading subsidiaries, is set out in the balance sheet on page 22 and amounts to £163.2m. The increase of £1.6m 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 £373k. This is the difference between the frozen values reflected on our balance sheet and the proceeds of sale of two properties. In addition, we purchased one property, and these movements are reflected on the balance sheet.

Finance Strategy

A high-level finance strategy for the Diocesan Board of Finance 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. The unapplied total return was not utilised in 2024, but we anticipate this funding will be deployed to deliver our strategy in 2025 and beyond.

Parish Giving Scheme and Digital Rollout

We launched the Parish Giving Scheme in our Diocese early in 2022 and again commend it to all parishes. Currently, PCCs in 207 (2023: 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 as a key part of efforts to improve the financial sustainability of parishes by supporting annual income growth and reducing the burden on parish treasurers and planned giving officers.

External Funding

We support our charitable purpose through securing external funding to reduce reliance on Parish Share. In 2024, grants from the Church Commissioners funded a significant number of ‘Minor Works and Improvements’ grants for local church building projects, administered by our similarly funded Church Buildings Support Officer.

External funds also covered the costs of a 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 benefited from an investment by the national church in staffing to enable us to develop plans for the delivery of our Vision. Most notably, this enabled the recruitment of a Director of Mission and Ministry, Revd Richard Lamey, to lead efforts in this area. We expect to apply for Diocesan Investment Programme funding in 2026. This will include engagement with churches on how we can support their plans for mission at a local level.

Thanks

On behalf of the Trustees, I thank the Parish Support Team for their tireless work and enthusiasm. Their considerable skills ensure that the highest quality support is available to 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. We renew our thanks to them all.

MARK JEFFRIES

17 June 2025

6

APPENDIX TO CHAIRMAN'S STATEMENT IN ANNUAL REPORT 2024

The table below summarises the main features of the year and my explanation of them. The figures are extracted from note 38 on page 48 of the financial statements and are prior to the consolidation of Subsidiaries.

Board
2024
£'000
Income
12,514
Expenditure
(12,480)
Operating (deficit)/surplus
34
Realised gains on sale of properties
- Board
373
Net income
407
Adjustment of value linked loans
(2)
Actuarial (loss)/gain on defined benefit pension scheme
378
Gains on investment assets:
Sale of glebe property (realised gains)
312
Revaluation of glebe holding
-
Quoted and unquoted investments
Realised
471
Unrealised
12
Increase in funds
1,578
Reconciliation of Management accounts operating position
Net income (shown above)
407
FRS102 Pension disclosure - Company Scheme
22
Donated property
(215)
DBF contribution to CPR project
-
Sale of surplus property
82
Realised gains on sale of properties
- Board
(373)
Operating deficit
(77)		 Board
2023
£'000
11,687
(11,800)
(113)
765
652
22
(296)
647
-
31
378
1,434
652
(102)
-
128
(765)
(87)		 Variances
£'000
827
(680)
147
(392)
(245)
(24)
674
(335)
-
440
(366)
144
(245)
124
(128)
392
10

7

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

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 2024.

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 1,841 square miles. The population was 928,331 at the time of the 2021 census and the demographics are as follows: the diocese is the 9[th] largest in England in geographical area but only 32[rd] in terms of density of population. The city of Norwich (census population 144,000, urban area 192,000) 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 560 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 co-opted 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.

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THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - continued

Structure, governance and management (continued)

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:

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 Glebe 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:

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THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - continued

Structure, governance and management (continued)

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.

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

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

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

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

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

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

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

Recruitment and appointment of Trustees

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

Induction and training of Trustees

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

Remuneration of key management personnel

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

Related parties/Connected charities

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

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THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024- 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:

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THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - 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 2024

The ongoing Cost-of-living crisis had an impact on finances during 2024, 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 give. This in turn has impacted on the ability to pay parish share.

Norwich Diocesan Board of Finance Ltd saw a slight increase in parish share income during 2024, but this was a significant decrease in real terms on pre-pandemic levels (see later operational performance on page 13).

We carried an average of 18 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 2025.

Mission and Ministry

Church Buildings

Environment and Net Zero

12

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - continued

Achievements and performance (continued)

Property

Operational performance

Norwich Diocesan Board of Finance Limited received 80.7% of parish share requested for the year of £8.305m, a shortfall of £1.607m. This is an increase of £54k or 0.81% when compared with 2023 receipts. The operating deficit at company level for 2024 is £77k (2023 £87k) (after adjusting for FRS102 pension adjustments and non-operational property surpluses, see page 7).

Parish Support Team vacancies carried during 2023 were filled during 2024. As previously mentioned, there were an average of 18 unplanned clergy vacancies, which when the posts are filled, will increase costs by up to £1.3m creating a significant operating deficit. Investment in clergy housing repair and maintenance remained high at £1,388k (2023 £1,512k), reflecting the continued commitment to catch-up of works required and environmental improvements.

Other steps taken to mitigate the level of deficit were:

Investment performance – overall performance

The overall value of Diocesan investment assets increased by £812,000 during 2024, as compared with an increase of £1,125,000 in 2023. The increases in 2023 and 2024 related to equity and fixed interest funds. In 2024 the operational activities of the Diocese were financed by £881,000 from interest and dividends (2023: £692,000).

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 £792,000 (2023: £816,000).

Investment in equity and fixed interest funds were valued at £10.7 million at 31 December 2024 (2023: £10.6 million) The unrealised loss in the value of investments during the year amounted to £353,000 (2023: unrealised gain £211,000). Dividends and interest receivable amounted to £361,000 (2023: £298,000).

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 £9.1 million at 31 December 2024 (2023: £8.1 million), an increase of £1,000,000 or 12.3%. Dividends and interest receivable amounted to £521,000 (2023: £394,000).

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 2024 were £396,000 (2023: £394,000).

13

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - 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 £13.4 million (2023: £13 million) and expenditure amounted to £13 million (2023: £12.9 million).

The Statement of Financial Activities (SOFA) for the year shows net income of £432,000 (2023: net income £186,000) before net gains and losses on the revaluation of investments and fixed assets and on the sale of investment assets, and actuarial losses on the defined benefit pension scheme.

The accounts show an increase in the balance sheet total of £1,656,000. During the year, total fund balances increased to £164.9 million.

Principal funding sources

Around 54% of the income of the Board comes from the Parish Share, 16% from Archbishops’ Council for Low Income Communities (LINC), transition funding and other grants, 13% from investment income (including glebe rent), and 4% 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.

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.

14

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - continued

Financial review (continued)

Investment policy (continued)

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 250 houses, and the employment of 52 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 2024, comprising the income funds freely available for general purposes (and which are not yet spent, committed or restricted) amounted to £6.3 million as compared with £5.8 million at the end of the previous year. Free reserves include free designated reserves of £108,000. 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 2024 amounted to £3.1 million (2023: £3.2 million). Total other restricted funds excluding tangible assets and long-term liabilities but including Glebe land at 31 December 2024 amounted to £65 million (2023: £64 million).

Trust (Capital and Income) Act 2013

During the period ending 31 December 2024 the Trustees used the above Act to release capital from the Stipends fund. In identifying the value of the portion of the permanent endowment fund that represented unapplied total return, the Trustees first identified the value of the initial investments (being Glebe land and investments) based on their 1994 values plus indexation. A figure of £23,586k was agreed by the Trustees as being the value of these investments as of 1 January 2024. From this date, subject to further indexation adjustments, anything above this amount represents the unapplied total return. The Trustees can release funds which are transferred to the income fund to fund stipends. This enables other funds which would have normally been used for the funding of stipends to be used as the Board sees fit. The transfer of UTR from the Glebe to the General Fund was £0.7m (2023 £nil) but none of this was expended to reduce the General Fund support of clergy stipends. The Trustees have taken relevant professional advice when setting the level of unapplied total return and the amounts to be drawn down.

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

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - continued

Financial review (continued)

c) Plans for the future

d) Principal Risks and Uncertainties

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

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

THE TRUSTEES’ AND DIRECTORS’ REPORT INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 - 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 that period. In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware:

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

Members of the Bishop’s Council of Trustees

Members of the Bishop’ Council of Trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 2. Nick Bolton and Michael Newey were appointed on 2 November 2024. Lindsey Rix-Broom resigned on 25 January 2024. Susan Martin, The Revd. Stephen Thorp and Thompson Zulu resigned on 2 November 2024.

Auditor

A resolution to re-appoint Lovewell Blake LLP as auditor of the Board will be proposed at the Annual General Meeting on 1 July 2025.

The Trustees’ report (incorporating Strategic Report) was approved by the Board on 17 June 2025. Signed by Order of the Board

TIM SWEETING, Secretary

17

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 2024 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and the Parent Charitable Company Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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:

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 or 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

INDEPENDENT AUDITOR’S REPORT (continued)

Responsibilities of Trustees

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 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:

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

19 June 2025

19

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2024

*** Restricted Funds** *** Restricted Funds** *
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Note Funds & Pastoral Fund Funds 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000
Income and endowments from
Donations 2
Parish contributions 6,698 - - - 6,698 6,644
Archbishops' Council 447 - 1,169 330 1,946 1,767
Other donations 739 - 23 8 770 361
Charitable activities 3 654 1 2 1 658 788
Other activities 4 796 2 - 519 1,317 1,211
Investments 5 311 181 1,152 29 1,673 1,508
Other sources 6 - 82 291 3 376 767
Total income 9,645 266 2,637 890 13,438 13,046
Expenditure on
Raising funds 7 - - 195 480 675 728
Charitable activities 8 9,924 24 2,116 267 12,331 12,132
Total expenditure 9,924 24 2,311 747 13,006 12,860
Net income/(expenditure) before
investment gains (279) 242 326 143 432 186
Net gains on investments 13 91 209 497 51 848 1,083
Net income/(expenditure) 14 (188) 451 823 194 1,280 1,269
Transfers between funds 15 700 - (700) - - -
Other recognised gains/(losses)
Adjustment of value linked loans 26 (2) - - - (2) 22
Actuarial gain / (loss) on defined benefit
pension scheme 28 378 - - - 378 (296)
Net movement in funds 888 451 123 194 1,656 995
Reconciliation of funds
Total funds at 1 January 2024 10,447 83,355 67,492 1,927 163,221 162,226
Total funds at 31 December 2024 11,335 83,806 67,615 2,121 164,877 163,221

The fund-analysis of the comparative figures is shown in note 37 to the accounts.

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

20

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2024

Total income (note 1 below)
Expenditure
Operating deficit 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		 2024
£'000
12,822
(13,006)
(184)
243
848
907
(2)
373
378
1,656		 2023
£'000
12,104
(12,860)
(756)
177
1,083
504
22
765
(296)
995

All income and expenditure relates to continuing activities

Total income comprises £9,405k for unrestricted funds and £3,417k 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 £907k comprises £188k net deficit of Unrestricted Funds and £1,095k 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		 2024
£'000
13,438
(243)
(373)
12,822		 2023
£'000
13,046
(177)
(765)
12,104

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

21

Company registration number: 88175

NORWICH DIOCESAN BOARD OF FINANCE LIMITED COMPANY BALANCE SHEET At 31 December 2024

Notes
Fixed Assets
Tangible assets
18
Investment assets
Glebe holding
19
Investments
20
Current Assets
Debtors
22
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 asset
Defined benefit pension scheme
asset
28
Net assets after pensions asset
Fund Balances
At 31 December 2024
27		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*2024
2023
Funds & Pastoral
Fund
Funds
Total
Total
£'000
£'000
£'000
£'000
£'000
£'000
3,621
80,749
4,597
-
88,967
89,082
-
-
46,706
-
46,706
47,018
3,511
4,777
10,696
-
18,984
17,909
7,132
85,526
61,999
-
154,657
154,009
2,413
18
1,075
6
3,512
2,712
-
15
-
-
15
14
205
333
-
-
538
506
1,315
(2,027)
4,643
872
4,803
5,083
3,933
(1,661)
5,718
878
8,868
8,315
1,131
60
103
468
1,762
1,785
2,802
(1,721)
5,615
410
7,106
6,530
9,934
83,805
67,614
410
161,763
160,539
396
-
-
-
396
394
9,538
83,805
67,614
410
161,367
160,145
1,797
-
-
-
1,797
1,441
11,335
83,805
67,614
410
163,164
161,586
11,335
83,805
67,614
410
163,164
161,586

The net movement in funds at company level was £1,578k (2023: £1,434k)

Approved by the Bishop's Council of Trustees on and signed on its behalf by17 June 2025 Chair Mark Jeffries …………………….. Diocesan Secretary Tim Sweeting ……………………..

……………………..

……………………..

22

Company registration number: 88175

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED BALANCE SHEET At 31 December 2024

*** Restricted Funds** *** Restricted Funds** *
Benefice Other
Unrestricted Buildings Stipends Restricted 2024 2023
Notes Funds & Pastoral Fund Funds Total Total
£'000 £'000 £'000 £'000 £'000 £'000
Fixed Assets
Tangible assets 18 3,621 80,749 4,597 520 89,487 89,599
Investment assets
Glebe holding 19 - - 46,706 - 46,706 47,018
Investments 20 3,511 4,777 10,696 854 19,838 18,714
7,132 85,526 61,999 1,374 156,031 155,331
Current Assets
Stock 21 - - - 106 106 51
Debtors 22 1,605 19 1,076 289 2,989 2,324
Balances with Church
Commissioners - 15 - - 15 14
Central Board of Finance
Deposit Fund 205 333 - 84 622 585
Cash at bank 1,830 (2,027) 4,643 2,659 7,105 8,050
Creditors- Amounts 3,640 (1,660) 5,719 3,138 10,837 11,024
falling due within one year 24 838 60 103 2,391 3,392 4,181
Net Current Assets 2,802 (1,720) 5,616 747 7,445 6,843
Total Assets Less
current liabilities 9,934 83,806 67,615 2,121 163,476 162,174
Creditors- Amounts falling
due after more than one year 25 396 - - - 396 394
Net Assets excluding pension
scheme asset 9,538 83,806 67,615 2,121 163,080 161,780
Defined benefit pension scheme
asset 28 1,797 - - - 1,797 1,441
Net assets after pensions asset 11,335 83,806 67,615 2,121 164,877 163,221
Fund Balances
At 31 December 2024 (page 20) 27 11,335 83,806 67,615 2,121 164,877 163,221

Approved by the Bishop's Council of Trustees on and signed on its behalf by17 June 2025 Chair Mark Jeffries …………………….. Diocesan Secretary Tim Sweeting ……………………..

23

NORWICH DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2024

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 2024
Cash and cash equivalents at 31 December 2024
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		 2024
2023
£'000
£'000
(3,077)
(3,334)
1,673
1,508
(9)
(9)
1,146
2,923
(676)
(3,354)
8,511
14,171
(8,475)
(14,213)
2,170
1,026
-
(24)
-
(164)
-
(188)
(907)
(2,496)
8,649
11,145
7,742
8,649
432
186
15
16
9
9
(373)
(765)
(1,673)
(1,508)
(55)
(25)
(821)
(868)
(633)
(277)
22
(102)
(3,077)
(3,334)
At 1 January
At 31 December
2024
Cashflow
2024
£'000
£'000
£'000
8,050
(945)
7,105
599
38
637
8,649
(907)
7,742
(394)
(2)
(396)
8,255
(909)
7,346

24

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024

1. Accounting policies

The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included at their fair value as determined under the applicable valuation method as detailed in e), and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2019), the Companies Act 2006 and applicable accounting standards (FRS102). The Board constitutes a Public benefit entity as defined by FRS102.

The principal accounting policies and estimation techniques are as follows.

a) Income

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

b) Expenditure

Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

25

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

1. Accounting policies (continued)

v) Pension contributions .

The Church of England Funded Pension Scheme

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

Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the scheme’s assets and liabilities to specific employers and that the contributions are accounted for as if the scheme were a defined contribution scheme. The pension costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions.

The Board’s Defined Benefit Scheme

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

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

Group Personal Pension Plan

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

26

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

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

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

1. Accounting policies (continued)

ii) Diocesan Stipends

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

iii) Diocesan Parsonages Fund

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

iv) Work in progress

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

v) Debtors and Creditors

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

vi) Cash at Bank

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

vii) The Diocese of Norwich Consolidated Education Endowments

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

viii) Financial Instruments

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

f) Fund balances

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

28

NORWICH DIOCESAN BOARD OF FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

1. Accounting policies (continued)

f) Fund balances (continued)

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

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

g) Consolidated accounts

For the purposes of the Consolidated Statement of Financial Activities and Balance Sheet which appear alongside those of the Board itself, the Board’s subsidiaries and quasi subsidiaries are considered to be Spire Support Services Ltd, NDBF (Easton) Ltd, Norwich Glebe Property Ltd, The Diocese of Norwich Consolidated Education Endowments (formerly Schemes under Section 554 of the Education Act 1996) and certain trusts over which the Board has absolute discretionary control and of which it is a beneficiary. The results of the subsidiaries and quasi subsidiaries are consolidated on a line by line basis within ‘other restricted funds’.

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 NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2024

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 80.7% of the allocation (2023: 82.4%)
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
Donated property
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
2024
2023
£'000
£'000
£'000
£'000
£'000
£'000
8,305
-
-
-
8,305
8,065
(1,607)
-
-
-
(1,607)
(1,421)
6,698
-
-
-
6,698
6,644
-
-
1,169
-
1,169
1,226
-
-
-
17
17
82
-
-
-
313
313
116
16
-
-
-
16
-
29
-
-
-
29
96
245
-
-
-
245
230
157
-
-
-
157
11
-
-
-
-
-
6
447
-
1,169
330
1,946
1,767
96
-
-
-
96
111
132
-
-
-
132
125
4
-
-
-
4
68
-
-
-
-
-
-
215
-
-
-
215
-
292
-
23
8
323
57
739
-
23
8
770
361
528
-
2
-
530
591
126
1
-
1
128
197
654
1
2
1
658
788
757
2
-
32
791
616
-
-
-
322
322
243
-
-
-
115
115
261
-
-
-
50
50
50
39
-
-
-
39
41
796
2
-
519
1,317
1,211
71
181
357
29
638
515
240
-
3
-
243
177
-
-
792
-
792
816
311
181
1,152
29
1,673
1,508
-
82
291
3
376
767
-
82
291
3
376
767
9,645
266
2,637
890
13,438
13,046
Restricted Funds
30

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

For the year ended 31 December 2024

For the year ended 31 December 2024
*** Restricted Funds ***
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Funds & Pastoral Fund Funds 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000
7. Expenditure on raising funds
Investment management costs
Glebe management charges - - 195 - 195 144
Trading expenses
Property support services - - - 458 458 274
Easton development - - - - - 261
Commercial property - - - 22 22 49
- - 195 480 675 728
8. Expenditure on charitable activities
Contributions to Archbishop's Council
Training for ministry 447 - - - 447 351
National Church responsibilities 279 - - - 279 271
Grants and provisions - - - - - 8
726 - - - 726 630
Expenditure on resourcing ministry and
mission
Parish ministry:
Stipends and national insurance 2,582 - 2,116 - 4,698 4,498
Pension contributions 975 - - - 975 1,025
Housing costs 2,069 24 - - 2,093 2,127
Removal, resettlement and other grants 167 - - - 167 138
Other expenses 181 - - - 181 161
5,974 24 2,116 - 8,114 7,949
Support for parish ministry 2,790 - - - 2,790 2,225
Resourcing Ministerial Education - - - 58 58 96
Roof Alarm Appeal - - - - - -
Church Planting and Revitalisation - - - 156 156 311
2,790 - - 222 3,012 2,632
Expenditure on education
Support for church schools 434 - - - 434 446
Grants - - - 45 45 475
434 - - 45 479 921
Total expenditure on charitable activities 9,924 24 2,116 267 12,331 12,132
Total expenditure 9,924 24 2,311 747 13,006 12,860
9. Analysis of expenditure
including allocation of support costs Activities
undertaken
directly
£'000		 Grant
funding of
activities
£'000		 Support
costs
£'000		 Total
2024
£'000		 Total
2023
£'000
Raising funds 675 - - 675 728
Contributions to Archbishop's Council 726 - - 726 630
Resourcing Ministry and Mission 9,232 64 1,821 11,117 10,551
Education, Youth Children and Families 434 45 - 479 921
Church Buildings Commission - - - - 13
Parish Giving Scheme 9 - - 9 17
11,076 109 1,821 13,006 12,860
31
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 2024
*** Restricted Funds** *
Benefice Other
Unrestricted Buildings Stipends Restricted Total Funds Total Funds
Funds & Pastoral Fund Funds 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000
10. Analysis of support costs
Central administration and office property costs 1,598 - - - 1,598 1,492
(inc. final salary pension adjustments and
externally funded roles)
Governance:
Amounts paid to auditor:
External audit 32 - - 7 39 36
Accountancy 16 - - - 16 6
Registrar, Chancellor, PCR2 review and HR 159 - - - 159 132
Synodical costs 9 - - - 9 12
1,814 - - 7 1,821 1,678
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
Church quinquennial inspections
PCC Faculty fees
Repair and reordering of redundant churches
Sharing good news grants
Continuing Ministerial Development
Norfolk and Waveney Churches Together
Church Planting and Revitalisation
Board for Social Responsibility grants
Net Zero Carbon quick wins
Net Zero Demonstrator grants
Minor repair claims and improvements grants
Education
CEE grants to schools and academies		 Individuals
£'000
-
59
167
17
-
-
-
-
11
-
-
-
-
-
110
-		 Institutions
£'000
667
-
-
-
53
25
-
11
-
3
122
22
19
40
-
45		 Total
2024
£'000
667
59
167
17
53
25
-
11
11
3
122
-
-
-
-
45		 Total
2023
£'000
571
59
138
96
46
28
5
7
8
3
48
-
-
-
-
476
364 1,007 1,180 1,485
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		 2024
£'000
1,725
166
-
266
10
14		 2023
£'000
1,378
130
-
198
65
10
2,181 1,781

32

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

12. Staff costs (continued)

The average head count of total employees:
The average number of employees, based on full-time equivalents were as follows:
Resourcing ministry
Support for parish ministry (externally funded 2024: 6, 2023: 6)
Safeguarding
Counsellor
Property
Parochial lay staff
Church Planting and Revitalisation
Education, youth, families and children
Spire Support Services Limited		 2024
52
24
3
1
5
3
4
5
6
51		 2023
53
25
3
1
5
3
4
6
4
51

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

2024 2023
£60,000 - £70,000 1 2
£70,000 - £80,000 1 1
£80,000 - £90,000 1 1
£90,000 - £100,000 1 -

Pension contributions amounting to £31k 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 2024 they were:

The Diocesan Secretary and Chief Executive, the Director of Property Services, the Director of Education, the Director of Finance, and the Director of Mission and Ministry. Remuneration (including employers National Insurance, pension costs and benefits-in-kind) and expenses for these employees amounted to £392.5k (2023: £363.7k).

Trustees Remuneration

No remuneration has been paid to any member of the Bishop's Council of Trustees in their capacity as Trustees (2023: £NIL). One member was reimbursed for travel and incidental costs incurred in undertaking their Trustee duties totalling £23 (2023: two members, £47).

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

33

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

For the year ended 31 December 2024

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		 2024
2023
142
145
£'000
£'000
4,322
4,151
377
346
1,035
1,083
5,734
5,580

The stipends of the Diocesan Bishop and two Suffragan Bishops are funded by the Church Commissioners and are in the range of £42,350 to £51,910. The annual rate of stipend, funded by the Board, paid to Archdeacons in 2024 was in the range of £39,058 to £40,565 and other clergy who were members of the Bishop's Council of Trustees were paid in the range £28,634 to £30,638. The estimated value to the occupant, gross of income tax and national insurance, of church provided housing in 2024 is an average of £15,000 p.a.

13. Net gains/(losses) on investments

Investments (note 20) 2024
£'000		 2023
£'000
Realised 471 34
Unrealised - listed 51 401
- unlisted
Glebe Holding (note 19)		 14 1
Realised 312 647
Unrealised - -
Net gains/(losses) 848 1,083
Net income/exenditre
Investments (note 20)
Realised
Unrealised - listed
- unlisted
Glebe Holding (note 19)
Realised
Unrealised
Net gains/(losses)		 2024
2023
£'000
£'000
471
34
51
401
14
1
312
647
-
-
848
1,083
Net income/(exenditure)
p
This is after charging:
Depreciation
Analysis of transfers between funds
General Fund
Transfer from Stipends Fund to General Fund re Unapplied Total Return (see note 36)
Stipends Fund
Transfer from Stipends Fund to General Fund re Unapplied Total Return (see note 36)
34		 2024
2023
£'000
£'000
15
16
Total
Total
2024
2023
£'000
£'000
700
-
(700)
-
700
-

14. Net income/(expenditure)

15. Analysis of transfers between funds

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

For the year ended 31 December 2024

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
793
-
38
157
195
598
2024		 £'000
818
-
55
89
144
674
2023

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 2024
485
5,253
80,193
755
2,882
Additions
-
-
673
-
-
Disposals
-
(656)
(117)
-
-
At 31 December 2024
485
4,597
80,749
755
2,882
Accumulated depreciation
At 1 January 2024
-
-
-
-
-
Disposals
-
-
-
-
-
Charge for the year
-
-
-
-
-
At 31 December 2024
-
-
-
-
-
Net book value
At 31 December 2024
485
4,597
80,749
755
2,882
At 31 December 2023
485
5,253
80,193
755
2,882
Company
At 31 December 2024
485
4,597
80,749
240
2,882
At 31 December 2023
485
5,253
80,193
240
2,882
2024
£'000
The net book amount comprises:
Assets used, or intended to be used, predominantly
87,587
for direct charitable purposes
Assets used for administration and other purposes
1,900
89,487
* Freehold Property *
Office
2024

and otherConsolidated

equipment
Total
£'000
£'000
186
89,754
3
676
-
(773)
189
89,657
155
155
-
-
15
15
170
170
19
89,487
31
89,599
14
88,967
29
89,082
2023
£'000
87,689
1,910
89,599

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 NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2024

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 2024
Additions
Disposals
Valuation as at 31 December 2024
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2024
Subsequent additions at cost
Disposals
Valuation as at 31 December 2024		 Glebe Property (mainly residential houses) comprises:
Houses at valuation as at 1 January 2024
Additions
Disposals
Valuation as at 31 December 2024
Benefice and Pastoral Property comprises -
Houses -
At valuation as at 1 January 2024
Subsequent additions at cost
Disposals
Valuation as at 31 December 2024		 2024
£'000
5,253
-
(656)
4,597
80,193
673
(117)
80,749		 2023
£'000
5,875
827
(1,449)
5,253
78,390
2,512
(709)
80,193

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 2024
Additions
Disposal proceeds
Profit on disposal
Revaluation adjustment
Valuation at 31 December 2024
Company
Valuation at 31 December 2024		 £'000
47,018
-
(625)
312
-
46,705
46,705

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 NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

20. Fixed asset investments

----- Start of picture text -----
Profit/(loss)
At 1 January Disposal on Increase in At 31 December
2024 Additions proceeds Disposal Market value 2024
£'000 £'000 £'000 £'000 £'000 £'000
Unrestricted Funds
Listed investments 2,614 783 (801) 80 11 2,687
Unlisted investments 100 - - - - 100
Cash 28 697 - - - 725
2,742 1,480 (801) 80 11 3,512
Restricted Funds
Listed investments 15,655 6,995 (7,031) 391 40 16,050
Unlisted investments 139 - - - 14 153
Cash 178 - (54) - - 124
15,972 6,995 (7,085) 391 54 16,327
Total 18,714 8,475 (7,886) 471 65 19,839
Company 17,909 7,599 (7,006) 471 12 18,985
2024 2023
The unlisted securities comprise:- £'000 £'000
Shares in the Central Board of Finance -
Investment Fund 47 44
(valued as per the Central Board of Finance)
COIF Charities Investment Fund Income shares
(valued as per COIF Charity Funds) 106 95
Investment in Eastern Landowners Consortium 97 97
Investment in CMCU shares 3 3
253 239
The historical cost of the above assets is as follows:
Listed securities 17,618 16,759
Unlisted securities 140 140
Cash 849 206
18,607 17,105
----- 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).

Invesco Markets
37		 2024
2023
£'000
£'000
993
-
993
-

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

21.
Stock
Stock and Work-in-Progress
22.
Debtors
Due within one year
Parish share
Assigned fees
Prepayments and accrued income
Amounts due from Subsidiary undertakings
Other debtors
Due after more than one year
Loans (note 23)
23.
Loans Receivable
Amounts due from Subsidiary undertakings
Amounts falling due after more than one year
24.
Creditors - amounts falling due within one year
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
Church Commissioners Property Loans -
Value Linked Loans
Amounts falling due after more than one year
Interest payable on loans due by the Board		 2024
2023
£'000
£'000
-
-
447
323
64
86
243
240
293
137
1,951
1,429
2,998
2,215
515
497
3,513
2,712
515
497
515
497
515
497
41
40
425
604
1,296
1,141
1,762
1,785
396
394
396
394
396
394
396
394
9
9
Company		 2024
2023
£'000
£'000
-
-
447
323
64
86
243
240
293
137
1,951
1,429
2,998
2,215
515
497
3,513
2,712
515
497
515
497
515
497
41
40
425
604
1,296
1,141
1,762
1,785
396
394
396
394
396
394
396
394
9
9
Company		 2024
2023
£'000
£'000
-
-
447
323
64
86
243
240
293
137
1,951
1,429
2,998
2,215
515
497
3,513
2,712
515
497
515
497
515
497
41
40
425
604
1,296
1,141
1,762
1,785
396
394
396
394
396
394
396
394
9
9
Company		 2024
2023
£'000
£'000
-
-
447
323
64
86
243
240
293
137
1,951
1,429
2,998
2,215
515
497
3,513
2,712
515
497
515
497
515
497
41
40
425
604
1,296
1,141
1,762
1,785
396
394
396
394
396
394
396
394
9
9
Company		 2024
2023
£'000
£'000
-
-
447
323
64
86
243
240
293
137
1,951
1,429
2,998
2,215
515
497
3,513
2,712
515
497
515
497
515
497
41
40
425
604
1,296
1,141
1,762
1,785
396
394
396
394
396
394
396
394
9
9
Company		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated		 2024
2023
£'000
£'000
106
51
447
323
64
86
250
248
-
-
2,228
1,667
2,989
2,324
-
-
2,989
2,324
-
-
-
-
-
-
60
53
1,252
1,743
2,080
2,522
3,392
4,318
396
394
396
394
396
394
396
394
9
9
Consolidated
1,762 3,392 4,318
396
396
396
396
9
394
394
9

38

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

For the year ended 31 December 2024

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
Mission Strategy
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
2024
Income Expenditure
Transfers
losses
2024
£'000
£'000
£'000
£'000
£'000
£'000
9,609
9,643
(9,907)
700
467
10,512
178
-
-
-
-
178
85
-
-
-
-
85
575
2
(17)
-
-
560
838
2
(17)
-
-
823
10,447
9,645
(9,924)
700
467
11,335
67,492
2,637
(2,311)
(700)
497
67,615
83,355
266
(24)
-
209
83,806
242
-
-
-
-
242
7
1
-
-
-
8
7
-
-
-
-
7
-
8
(8)
-
-
-
40
17
(57)
-
-
-
(5)
314
(156)
-
-
153
(1)
486
(480)
-
-
5
1,530
59
(46)
-
51
1,594
107
5
-
-
-
112
1,927
890
(747)
-
51
2,121
152,774
3,793
(3,082)
(700)
757
153,542
163,221
13,438
(13,006)
-
1,224
164,877

The Board's Capital and General Funds includes £990,000 relating to capital (2023: £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. The transfer to the general fund represents the release of the unapplied total return (see note 36).

39

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

For the year ended 31 December 2024

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 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, which were £975k in 2024 (2023: £1,025k), plus any figures arising from contributions in respect of the Scheme's deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2024, following the valuation results being agreed, the deficit contributions paid were £Nil (2023: £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, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%).

40

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

For the year ended 31 December 2024

28. Pension costs (continued)

The Church of England Funded Pension Scheme (continued)

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded. Previous deficit recovery contributions under the recovery plan were as follows:

% of pensionable stipends 1 January 2021 to 1 January 2023 to
31 December 2022 31 December 2024
Deficit repair contributions 7.1% Nil

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

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2023 and 31 December 2024 is nil. The movement in the balance sheet liability over 2023 and over 2024 is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability* (recognised in SoFA)
Balance sheet liability at 31 December		 2024
2023
£'000
£'000
-
-
-
-
-
-
-
-
-
-

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 2024 by a qualified independent actuary.

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

Employee benefit obligations - amounts recognised in the balance sheet:

Present value of funded obligations
Fair value of plan assets
Net defined benefit asset		 2024
2023
£'000
£'000
1,555
1,694
3,352
3,135
1,797
1,441

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

41

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

For the year ended 31 December 2024

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 cost / (income) recognised in Statement of Financial Activities
Actual return on plan assets		 For year to
For year to
31 December 2024
31 December 2023
£'000
£'000
6
5
79
18
75
76
(138)
(154)
22
(55)
353
(94)

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

Opening defined benefit obligation
Current service cost
Interest expense
Actuarial (gain)/loss
Benefits paid
Closing defined benefit obligation		 For year to
31 December 2024
£'000
1,694
6
75
(163)
(57)
1,555

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 NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2024

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 2024
£'000
3,135
138
215
(79)
-
(57)
3,352

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:

2024 2023
% 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 2024 2023
Discount rate 5.35% pa 4.50% pa
RPI inflation assumption 3.25% pa 3.10% pa
CPI inflation assumption 2.95% pa 2.80% pa
Future salary increases 3.25% pa 3.10% pa
Pension increases in payment
(RPI - maximum 5%) 3.00% pa 2.90% pa
(CPI - maximum 2.5% ) 1.95% pa 1.90% pa
b) Demographic assumptions
Assumed life expectancy in years, on retirement at 65: 2024 2023
Retiring today Males 21.1 21.1
Females 23.7 23.6
Retiring in 20 years Males 22.4 22.3
Females 25.1 25

43

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

For the year ended 31 December 2024

29. Redundant Churches

The Board was responsible for the care and maintenance of 3 redundant churches during the year (2023: 3). The cost to the Board in 2024 was £Nil (2023: £4,647).

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 2024 and 31 December 2024 is detailed below:

Cash held at 1 January 2024
Grants received from DFE
Payments on behalf of Schools
Cash held at 31 December 2024		 2024
2023
£'000
£'000
388
774
155
180
(247)
(566)
296
388

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 £5,660 was recharged to Norwich Diocesan Board of Finance Limited by the Horstead Centre in respect of event costs (2023: £3,914), with £Nil outstanding at the year end (2023: £3,003). Nothing was charged to the Horstead Centre by the Board in 2024 (2023: £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. £6,445 (2023: £3,009) was recharged to The Diocese of Norwich Education and Academies Trust (DNEAT) in 2024 by the Consolidated Education Endowments Fund (CEE) and the Norwich Diocesan Board of Finance Ltd, with £6,445 outstanding at the year end (2023: £1,730). £Nil (2023: £172,602) was charged to the Norwich Diocesan Board of Finance and CEE with respect to contribution to services and contributions to closed school sites with £Nil (2023: £171,000) 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. £Nil (2023: £nil) was recharged to St Benet's Multi-Academy Trust by the Norwich Diocesan Board of Finance Ltd in 2024, with £Nil (2023: £nil outstanding at the year end. £1,232 (2023: £253,215) was charged to the Norwich Diocesan Board of Finance and CEE with respect to contribution to services and training costs with £1,232 (2023: £252,000) 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. £Nil was recharged to The Diocese of Norwich Education Support Company (DONESC) (2023: £nil), with £nil outstanding at the year end (2023: £nil). £80,851 was charged by DONESC with respect to Headteacher recruitment support and RE Lead Support (2023: £82,414), with £Nil outstanding at the year end (2023: £27,425).

Some of the Trustees of the Board are also Trustees of the Anne French Memorial Trust. £67,063 was recharged to The Anne French Memorial Trust in 2024 (2023: £46,761), with £21,520 outstanding at the year end (2023: £14,304). Grants totalling £45,775 were given towards clergy housing costs, mediation and DBE administration, this income is released to match expenditure (2023: £35,000). A grant of £4,000, given towards Generous Giving Advisors and Strategic Programme Management, has been accrued to match expenditure. A deferred grant from 2023 totalling £29,230, given towards energy efficiency housing costs, has been released to match expenditure. A deferred grant from 2022 totalling £21,000 towards a pastoral issue has been deferred again to 2025. Grants of £46,804 were made in 2024 towards Environment projects, of this £12,765 has been deferred to 2025.

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 (2023: £nil).

44

NORWICH DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

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.
2024 2023
£'000 £'000
Net profit/(loss) (before tax and Corporate Gift Aid) for the year ended 31 December
23		 (1)
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) 2024
£'000
293		 2023
£'000
137
Amounts owing by Subsidiary undertaking at 31 December 2024 (debtor) 293 137
Shareholders Equity/(Deficit) 5 -

During the year Spire Support Services Limited collected rental income net of 8% commission plus VAT of £685,072 (2023: £464,502). Spire Support Services charged Norwich Diocesan Board of Finance Limited (inc. CEE) £124.147 inc VAT for design, surveying services and Church Quinquennials (2023: £18,105), with £Nil outstanding at the year end (2023: £611). Norwich Diocesan Board of Finance Limited charged Spire Support Services £11,445 for management oversight, financial services, office rental and loan interest (2023: £20,316). £17,042 will be paid in corporate gift aid to Norwich Diocesan Board of Finance Ltd within nine months of the year end. The accounts for Spire Support Services Limited for the year ended 31 December 2024 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 2024
2023
£'000
£'000
115
261

£114,927 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 2024 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 2024
2023
£'000
£'000
28
29

During the year Norwich Diocesan Board of Finance Limited collected rental income and expenses net of VAT of £49,929 on behalf of Norwich Glebe Property Limited, paid costs of £4,160 (2023: £3,779) and charged loan interest of £17,458 (2023: £16,661) 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 2024 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 NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2024

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 2024
Deferred income (released)/added during the year
Deferrred income carried forward at 31 December 2024
The carrying amounts of the company's financial instruments are as follows:		 2024
2023
£'000
£'000
18,737
18,269
2,342
2,531
(418)
(189)
1,924
2,342

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

36.
Total return investment
As at 1 January 2024
Base value of the permanent endowment:
Glebe land
Glebe investments
Unapplied total return
Total
Movements in the accounting period:
Dividends received
Realised and unrealised investment gains/(losses)
Investment management fees
Indexation of base level of investments:
Glebe land
Glebe investments
Unapplied total return allocated to income
Net movements in the accounting period
As at 31 December 2024
Base value of the permanent endowment:
Glebe land
Glebe investments
Unapplied total return
Total		 Unapplied
Endowment
Total Return
Total
£'000
£'000
£'000
16,388
-
16,388
8,416
-
8,416
-
32,791
32,791
24,804
32,791
57,595
-
300
300
-
497
497
-
(66)
(66)
566
(566)
-
291
(291)
-
-
(700)
(700)
857
(826)
31
16,954
-
16,954
8,707
-
8,707
-
31,965
31,965
25,661
31,965
57,626

46

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

For the year ended 31 December 2024

37. 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 2023
Total funds at 31 December 2023		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*Total Funds
Funds & Pastoral
Fund
Funds
2023
£'000
£'000
£'000
£'000
£'000
6,644
-
-
-
6,644
343
-
1,226
198
1,767
361
-
-
-
361
784
2
2
-
788
638
5
-
-
643
223
147
1,114
-
1,484
-
281
484
-
765
8,993
435
2,826
198
12,452
-
-
144
-
144
9,080
18
2,151
407
11,656
9,080
18
2,295
407
11,800
(87)
417
531
(209)
652
64
146
846
-
1,056
(23)
563
1,377
(209)
1,708
-
-
-
-
-
22
-
-
-
22
(296)
-
-
-
(296)
(297)
563
1,377
(209)
1,434
10,744
82,792
66,115
501
160,152
10,447
83,355
67,492
292
161,586

47

For the year ended 31 December 2024

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

38. 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 2024
Total funds at 31 December 2024		 *** Restricted Funds
Benefice
Other
Unrestricted
Buildings
Stipends
Restricted
*Total Funds
Total Funds
Funds & Pastoral
Fund
Funds
2024
2023
£'000
£'000
£'000
£'000
£'000
£'000
6,698
-
-
-
6,698
6,644
447
-
1,168
330
1,945
1,767
739
-
23
8
770
361
655
1
2
1
659
788
796
2
-
-
798
643
311
181
1,152
-
1,644
1,484
-
82
291
-
373
765
9,646
266
2,636
339
12,887
12,452
-
-
195
-
195
144
9,924
24
2,116
221
12,285
11,656
9,924
24
2,311
221
12,480
11,800
(278)
242
325
118
407
652
90
208
497
-
795
1,056
(188)
450
822
118
1,202
1,708
700
-
(700)
-
-
-
(2)
-
-
-
(2)
22
378
-
-
-
378
(296)
888
450
122
118
1,578
1,434
10,447
83,355
67,492
292
161,586
160,152
11,335
83,805
67,614
410
163,164
161,586

48