Diocese of Rochester _Getting through together_ 2020 ANNUAL REPORT AND ACCOUNTS
## **ABOUT US**
_We are the Church of England operating in the Diocese of Rochester in the area of Medway, north west Kent and the London Boroughs of Bromley and Bexley. A diverse and vibrant community of faith, we serve a population of some 1.3 million people, including 215 parishes, 90 schools, and numerous chaplains. We enjoy companion links with the Anglican Dioceses of Harare in Zimbabwe, and Kondoa and Mpwapwa in Tanzania as well as an ecumenical link with the Evangelical Lutheran Church of Estonia._
_The Trustees, who are also directors for the purposes of company law, present their trustees’ report together with the financial statements and auditor’s report for the charitable company – the Rochester Diocesan Society and Board of Finance Limited (RDSBF) for the year ended 31 December 2020._
_The financial statements comply with current statutory requirements of the Charities Act 2011, the Statement of Recommended Practice for Charities 2015 (SORP 2015) (Second Edition, effective 1 January 2019) and the Companies Act 2006._
Registered & Principal Office: Diocesan Office
St Nicholas Church Boley Hill Rochester Kent ME1 1SL
Members of the Bishop’s Council (Directors and Trustees): The Lord Bishop of Rochester (Chair)
- The Rt Rev James Langstaff The Bishop of Tonbridge
- The Rt Rev Simon Burton-Jones The Chair of the Board of Finance - Mr Nigel Pope
## Senior Staff:
Diocesan Secretary (and Company Secretary) - Mr Matthew Girt Director of Finance - The Rev Richard Williams Director of Property - Mr Stephen Hoad Director of Formation and Ministry - The Rev Canon Chris Dench Director of Diocesan Board of Education - Mr John Constanti Bishop’s Chaplain - The Rev Lindsay Llewellyn-MacDuff
## Advisors:
Ex-officio:
The Archdeacon of Bromley & Bexley - The Ven Dr Paul Wright The Archdeacon of Rochester
- The Ven Andrew Wooding Jones The Archdeacon of Tonbridge - The Ven Julie Conalty The Dean of Rochester Cathedral
- The Very Rev Dr Philip Hesketh The Chair of the House of Laity - Mrs Sarah Poole The Chair of the House of Clergy - The Rev Canon Alyson Davie The Chair of the Board of Education - The Rt Rev Simon Burton-Jones
## Elected – House of Clergy:
- The Rev Canon Mark Barker
- - The Rev Dr Julie Bowen - The Rev Martyn Saunders
Elected – House of Laity:
- Miss Christine Bostock
- - Mr David Fitzpatrick - Mr Philip French - Mr Guy Gallico - Mr Gerald O’Brien
Auditors:
Haysmacintyre LLP 10 Queen Street Place, London EC4R 1AG Registrar:
Mr Owen Carew-Jones Winckworth Sherwood LLP Minerva House, 5 Montague Close, London SE1 9BB
Bankers:
Barclays Bank Plc, 2nd floor, 30 Tower View, Kings Hill, West Malling, Kent ME19 4WA
Property Adviser and Glebe Agent:
Savills plc
74 High Street, Sevenoaks, TN13 1JR Investment Advisers: Mercer Global Investment Management Ltd. 1 Tower Place West, Tower Place, London, EC3R 5BU
Insurers: Ecclesiastical Insurance Office plc Beaufort House, Brunswick Road, Gloucester GL1 1JZ
The Rochester Diocesan Society and Board of Finance is a company Limited by Guarantee Registered Charity No. 249339 Registered in England No. 140656
- Mr Alan Strachan
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## MESSAGE FROM
## **THE BISHOP OF ROCHESTER**
The Rt Rev James Langstaff
## A YEAR LIKE NO OTHER – GETTING THROUGH TOGETHER
It is hard to believe that at the beginning of last year, we had little inkling of the upheaval, uncertainty, and sorrow that we were about to experience.
We have all probably lost count of the number of conversations we have had in which we have tried to think about how we will be living in 6 months’ time, a year, more.
A year on from the start of the pandemic and we have signs of hope thanks to the vaccines; however, these months have been hard. People have faced illness, death and grief; others have been living in isolation, and some have seen their livelihoods fall away.
The loss and long-term impacts of the pandemic are only just beginning to be understood. Likewise, its impacts on the Church.
And while much remains uncertain, what is clear, is that at this time, as a community of faith here in the Diocese of Rochester, we have been, and will see this through together.
And more than that, we have been an intrinsic part in seeing others through as well. Our communities have come together in new ways; neighbours have been cared for, new relationships established, and new forms of connection discovered. While at points our buildings have been closed for worship, our outreach, our prayer-life, our pastoral concern for others, has continued.
Both churches and our diocesan support teams
have adapted and met the needs of the times, together.
Our strategic vision has been a bedrock, as we have helped people _**grow**_ in their relationship with God; as we have helped _**enrich**_ lives during a time of isolation; as we have _**resourced**_ each other practically and spiritually.
It has not always been easy. We have had to find new strengths and resilience. A willingness to sometimes ask for help or to request understanding.
So, this year’s report has a simple thread. It is the story of how our family of faith – parishes, schools, chaplaincies, community projects, individuals, and Diocesan teams, have lived through this past year together and have begun to emerge from the other side.
The Bishop of Tonbridge, the Rt Rev Simon Burton-Jones, has said it is like we are emerging from an earthquake. The landscape has been fundamentally changed. But rather than running to the first piece of masonry, we would do well to listen. To listen to the cries of those who need us.
And we do so, sure in the knowledge that, while things may be different, we will find ways forward for our personal and shared living. For, ‘Jesus Christ is the same yesterday and today and for ever’ (Hebrews 13.8). However great our uncertainty about how life will be, that is one thing of which we can be absolutely certain.
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## OUR VISION
We are Called Together to enhance and steward our resources for the work of God
God calls us above all to show forth his character in acts and attitudes of grace and generosity
God calls us together into a common endeavour of worship and of prayer, of proclamation and of service
## OUR AIMS
Grow: To better live out the Great Commission, to share the Good News, and see more people find faith
Enrich: Enrich every community through the activities of the local church
Resource: Enable parishes to run efficiently and sustainably, so that they can focus more on ministry and mission
## DIOCESE OF ROCHESTER
## ANNUAL REPORT AND ACCOUNTS
- 03 Message from the Bishop
- 04 Our Vision and our Aims
- 06 Message from the Diocesan Secretary
- 07 Message from Chair of the Board of Finance
- 08 Reviewing Called Together
- 09 Our Year in Numbers
- 10 Strategic report and operating review
- Responding creatively to Covid
- Showing the love of Christ
- Supporting people’s journey of faith
- Continuing to give parishes the support they need
- 24 Financial overview
- 28 Financial strategy
- 35 Mitigation of risks and uncertanties
- 37 Financial review
- 40 Governance, structure, and management
- 44 Statement of trustees
- 45 Independent Auditor’s report
- 48 Statement of financial activities
- 49 Balance sheet
- 50 Statement of cash flows
- 51 Notes for the financial statements 78 Parish Fund Balances
- 80 Parish Offers
## MESSAGE FROM
## **THE DIOCESAN SECRETARY**
Matthew Girt
Looking back on the last year, there are several themes which come to mind. One most particularly though is loss. Whether that is loss of loved ones, friends, freedoms, opportunities – there has been far too much loss.
That loss has led us to change, and that in itself is significant. Significant, because it has meant letting go of many closely held patterns of living, of sharing, and how we live out our faith. However, another theme that comes just as strongly to mind for me is that of courage.
Those changes in life, their stop start nature, the imposed and unwantedness of them have led to real challenges, and those challenges have been sharp, and on the front line of ministry in parishes and chaplaincies they have required courage to navigate.
Raymond Lindquist describes courage as “the power to let go of the familiar”, and 2020 was a year for that. Yet, reading this report, the real determination to live through this pandemic witnessing to our faith, is explicit and palpable.
As the year has progressed, and we have moved in to 2021, it has taken real courage and determination from parishes and staff to continue.
I am indebted to the commitment of staff as they have worked tirelessly to support the front line of ministry, often with less resource than they were expecting.
2020 is also Bishop James’ last full year as Bishop of Rochester. We have been hugely blessed in this Diocese over the last ten years for the way he has shepherded the Diocese through two of the biggest changes in living memory. The first being the real
economic fall out of the financial crisis, and the second being the current pandemic.
Set against that backdrop of challenge, we have been fortunate to have his wisdom, his innate ability to draw the best from people, and his quiet and strong leadership in this Diocese. We have been blessed too by his gift for fostering fruitful relationships between ourselves, and external partners.
Relationships that have led to real change and positive transformation in the flourishing of lay ministry, the significant reach and impact of community engagement, of the more recent growth in the mixed ecology of church, the fostering of chaplaincies, the ability to take a strategic view of the changes in population, both in growth in numbers and culture, and the significant multi million pounds of investment from others in our mission, the list is long.
For the ministry of Bishop James and his wife Bridget, we have much to thank God for, and thanks to God’s grace and with our refreshed strategic framework, Called Together, we are in good heart for the next ten years.
And so, it is the continued working out of this grace that I pray for as we implement the changes of this last year, of the work we must do on continuing to refine the opportunities for investment we have identified, for the difficult decisions we have still to make, and as we search for the new Bishop of Rochester.
The courage and determination which I have been fortunate to witness in 2020 places us in a good position to be challenged and rise to that challenge as we continue in our witness.
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## MESSAGE FROM
## **CHAIR OF THE BOARD OF FINANCE**
Nigel Pope
2020 was a difficult year for many people and organisations and certainly one to move on from. However, it has been a much stronger year financially for the Diocese than we had feared midway through 2020 as Covid 19 took hold and we modelled worst case financial scenarios.
Our operating deficit for 2020 ended up at £0.9m, slightly worse than our base case budget deficit of £0.8m, and we ended 2020 with £9m of cash and short-term deposits. Overall, Parish Offers, plus DBF fees, ended the year only 3% lower than 2019, which in the circumstances was amazing, and a £320k grant from Archbishop’s Council and cost savings enabled us to end up so close to budget.
Many parishes stretched themselves financially to maintain their Parish Offers, or to pay as much as they could, often utilising reserves to be able to do this. Thank you for this generosity which is very much appreciated.
affordable for 2021, is not a sustainable position long term. Rightly the Diocese has initiated a strategic review, with one of its key objectives being to work out how to invest for the future to arrive at a sustainable financial position.
I must conclude with thanks to the parishes for their generosity. Thank you for all the work you are doing to build the Kingdom of God in your churches and communities.
My thanks also to Matthew, whose leadership has been invaluable and steadfast during this time, and to the entire Diocesan Staff Team for their professionalism and commitment to serving the needs of the parishes.
The pandemic impacted on parishes in different ways, and some were hit financially very hard. It was a privilege to be able to help some of our hardest hit parishes with grants from a Covid relief fund we established. In total 48 grants of £5,000 were made and, in another example of parish generosity, 7 parishes gave a total of £36,000 towards this fund. As a Diocese and parishes, we are indeed Called Together to support one another.
We have recently appointed a generous giving adviser and will be looking to roll out a parish giving scheme which we believe will be of assistance to our parishes in inspiring and supporting generous giving from parishioners.
There are however many challenges ahead. Our budgeted operating deficit for 2021 at £1.8m, while
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## **REVIEWING CALLED TOGETHER**
After two full years of activity, a review and ‘direction sense check’ of the Called Together framework was earmarked for 2020. The Covid-19 pandemic provided additional reason to reflect on progress and consider carefully where our focus should be going forward. Good strategy is supple and adaptive, so this was a good moment to reassess ours.
The review process was by necessity much shorter and smaller than the initial engagement process but drew upon feedback given since 2017. Conversations were had with different groups and individuals involved in the life of the Diocese and an engagement with Diocesan Synod members provided a ‘sense check’ for the proposed refresh.
Initial findings were that the three core themes of Called Together – Growing Disciples, Enriching Communities, and Resourcing Mission and Ministry, are well known and understood, but the 12 workstreams are not. There was a desire to simplify the framework. In addition, there are emerging areas of concern which churches would like to focus on, and others which have become ‘business as usual’ or it is clear that we overcomplicated issues by creating a workstream around it.
A number of church leaders mentioned the Five Marks of Mission as a core guide to the purpose of the Church. The revised Called Together framework ensures our strategic activity also responds to these, alongside maintaining our three core themes.
These themes of Grow, Enrich, Resource imply rootedness and continuity, like a tree giving fruit in season. We are in a period of disjuncture and we decided to keep these themes in place because they are well understood and the Church will continue to grow, enrich and resource.
It makes sense for us to align our priorities with the five marks of mission and so our overarching priorities are:
• Enabling each church to be mission-minded
• Helping children, young people, and adults live out everyday faith in Jesus
- Supporting loving service in local communities
• Encouraging, and responding to, the prophetic voice of justice and peace
• Protecting creation’s life for future generations.
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## OUR YEAR IN NUMBERS...
**20** PEOPLE ORDAINED AS DEACON OR PRIEST
## **35**
PARTICIPANTS TO THE ONLINE ‘CLOSER’ DISCIPLESHIP COURSE
**9** PROJECTS SUPPORTED BY A CHILDREN AND YOUNG PEOPLE FUND GRANT TO A TOTAL OF **£19,827.75**
**633** PEOPLE COMPLETED BASIC SAFEGUARDING AWARENESS TRAINING ONLINE
**50**
PEOPLE TOOK AN ONLINE RETREAT RUN BY THE DIOCESE’ S SPIRITUALITY NETWORK
**1557**
PROPERTY MAINTENANCE REQUESTS PROCESSED
**12** PEOPLE LICENSED AS LAY MINISTERS
**92%** OF CHURCH SCHOOLS GRADED OUTSTANDING OR GOOD BY OFTSED
**119**
PEOPLE REGULARLY ATTENDED WEBINARS RELATED TO CHILDREN AND YOUTH MINISTRY
**17** HUBS AND CAFÉS SUPPORTED BY THE COMMUNITY AND
ENGAGEMENT TEAM
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## **RESPONDING CREATIVELY TO COVID**
_Covid-19 restrictions brought the closure of church buildings for a time. As a result, churches learned fast how digital communications and social media could enhance their mission and ministry, as well as how to maintain their connections._
Like many churches, St George’s Church, Weald Sevenoaks, went online for the first-time during lockdown. It started with a thought for the day, just a few minutes on camera, to give hope and encouragement to people.
They found that people really liked it and wanted more. They also found that they were able to share stories in ways they had perhaps not been doing in the Sunday service in their building.
In addition, a webinar organised by the Diocese looking at the issues raised by doing church online, as well as offering some practical tips, saw over 100 people attend from across the parishes.
Throughout the year, the Communications Team have been on hand to offer parishes advice and signposts to resources on topics such as music copyright, licenses, establishing a social media presence and what equipment to use.
“We live in a rural area where connectivity isn’t great, so we made a decision to do a pre-recorded Sunday service. It gave us the flexibility to put more items in and share stories among ourselves. It’s given our creativity and connectivity a real boost - it’s very exciting.”
_The Rev Mandy Carr, Vicar of St George’s, Weald._
Their experience was not uncommon.
A survey carried out by the Diocese’s Communication Team during 2020, confirmed that many churches went on a steep and fast digital learning curve during the first lockdown.
They were creative with the resources and technical skills at their disposal to stay connected and keep serving their communities.
Many discovered that what they offered didn’t always need to be complicated, or overproduced, but it did have to be right for them and their community. Some hidden talents among congregations were revealed and brought forward, and new connections made.
A Diocesan Digital Church Working Group was set up to bring church leaders together – both lay and ordained – to discuss their experiences and work out what support parishes needed.
## **BUILDING RELATIONSHIPS ONLINE**
Just as in the physical world however, doing ‘church’ digitally is not just about offering worship and prayer, but building community and providing opportunities for people to explore and grow in their faith.
At Christ Church in Erith, project worker Jacki Clement soon discovered that they could still reach out to their families and young people:
“Our Kids Sunday Club had about 20 children and we used to meet most weeks. So, I started putting that online and we got such good feedback that we put our Toddler Worship online too; Children complete an activity and share pictures of their finished product with me.”
At St Katharine’s Knockholt with St Margaret’s Halstead, The Rev Tim Edwards, found that people really responded to online opportunities to explore faith:
“We know of one person who has come to faith through watching Alpha online (he is now looking to get baptised) and a group of men through our Christianity Explored, which we did this time on Zoom. People have found that doing the sessions online has made it much easier for them to feel able to explore big issues.”
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## Photo:
_St Mark, Biggin Hill_
_All Saints’ Church in Orpington was without a vicar – a period known as being in interregnum – and had just begun to think about its online presence. Then the pandemic hit._
**“WE HAVE NO INTENTION OF STOPPING STREAMING”**
Lesley Birse, who leads the church’s Facebook page says they began with nothing: “I hit on the idea of a Bible Reading a Day - approximately two minutes of people’s time to listen to a reading. When I tried later on to stop the readings, someone commented that they had been a life-line in the first lockdown and I was asked to keep them.”
The church then began to put together simple pre-recorded services. Once their new vicar joined, they were able to stream Morning Prayer, and armed with no more than an iPad and determination, Sunday and Wednesday services went out live too. They’ve streamed a wedding - the family were as far afield as India and Australia and some continue to follow their Facebook page - and they have streamed funerals too. Lesley says: “We have no intention of stopping streaming - we have seen the benefits and so has our congregation during the lockdown.”
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## **MIXING IT UP**
At the same time, there was a recognition that not everyone had easy access to the internet or felt comfortable using it.
Churches have therefore offered multiple pathways for interaction, including dedicated home packs, especially around the key seasons of Lent, Easter, Advent and Christmas, outside meditative prayer walks, and phone-sermons and prayer.
Going forward, as restrictions ease, church teams face the new challenge of a hybrid form of church - balancing communities still meeting online, while worship in buildings returns.
To support this ongoing journey, information has been regularly shared by Diocesan Teams regarding national and local webinars offering
both practical skills and wider thinking on digital church, evangelism and outreach.
Peer-to-peer support has been made available through the setting up of an increasingly active Diocese of Rochester Digital Church Support Group on Facebook, and a Digital Church Resource Hub, with information and signposting to best practice, is accessible on the Diocesan website.
“We’ve come to realise that we will have to continue all our online services into the future, indefinitely, not just for the sake of our own church members too anxious about returning to church, but also for the sake of all the non-church people who have accessed our online material, which is really gratifying.”
(The Rev Munna Mitra from the Parish of South Gillingham.)
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Photo top left
_Rev Mandy Carr’s live streaming set-up_
Photo bottom left
_Spark in the Park at Home, Welling holiday club_
Photo bottom right
_St Mark, Gillingham, online Gospel choir_
Photo top right
_St Francis, Strood “Cooking up a Zoom”_
**PIONEERING ONLINE COMMUNITY OUTREACH TO ESTATES**
_Giovanni Parrales joined St. Francis Church, Strood as their new Pioneer Estates Minister near the end of the year. His role has been funded as part of the £1.39million grant the Diocese received from the National Church’s Strategic Development fund, to give creative Christian outreach a boost. Arriving in the midst of a pandemic did not deter or dampen his efforts to grow disciples or meet the needs of the community._
“It has been a challenge but, thanks to modern technology, I have been able to start getting in contact with those who are already supporting this community with the various work they do.
“This pandemic has shown there is a great need for creating ways to engage with families and individuals to help ease the pressures of working from home, home-schooling and isolation.
“Here, at St Francis, we’ve focused on some creative activities to help people with their wellbeing and mental health. For instance, our _Click and Connect_ group is an opportunity for people to meet online for light conversation. We also started, _Cooking up a Zoom_ - an online cooking activity for families of all ages.”
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## **SHOWING THE LOVE OF CHRIST**
_Churches and individuals stepped up during lockdown, proving that, while church buildings may have closed, the Church most definitely did not. Diocesan Teams have been there to support, encourage and advise churches on how to do this in the most Covid-safe ways as possible._
From community larders and prescription runs, telephone befriending schemes and mental health walks, to support for women fleeing abuse, outreach to care homes and setting up as Covidtest sites, churches have been walking alongside their communities as living beacons of hope throughout the pandemic.
Many of these were developed in direct response to the social problems exacerbated by Covid-19: hunger, isolation, poverty and abuse. Others were quickly adapted out of established outreach or as an escalation of response.
Very often these vital initiatives have been supported by Diocesan Support Teams through the provision of advice, guidance, and connecting them with appropriate partners as well as funding.
The Place of Welcome at St Augustine, Gillingham is one such case.
One of 17 hubs and cafés supported by the Diocese’s Community Engagement and Social Action team, it has continued its work throughout the pandemic.
“We wanted to use the church as a centre from
which to address isolation, loneliness, and health issues locally. We have not let the pandemic deter us.” (Andrew Gray, project leader).
The team held weekly Place of Welcome events via Zoom and then in the Summer ran a Chatty Church outside. “We started the hub again in September. It was and is humbling to see how many people have come along. We’ve heard laughter, the buzz of conversations – friends reunited.”
The many practical demonstrations of God’s love taking place on the ground in parishes was at the centre of a series of filmed stories called, ‘Stories of Comfort and Joy’, and a joint series with the Diocese of Canterbury called, ‘Beacons of Hope’.
These reflections shone a light on the creative care and love of neighbour by churches, and aimed to offer encouragement and hope at a time of despair to the parishes and communities in the diocese.
They were also a reminder to the wider public that their local church was there for them in this time of need.
**COMFORT AND**
_Domestic abuse comes in many forms, from physical and psychology, to financial. Sadly, lockdown saw a rise in domestic abuse incidents._
A new church-backed project in Bromley was **HOPE FOR** launched during the pandemic, in partnership with Bromley and Croydon Women’s Aid, to offer **WOMEN** support to women fleeing domestic abuse. Called, Journey to Freedom, this fund provides a basic **FLEEING** starter pack to help bring some home-comforts to women being rehoused out of a refuge: “This is **DOMESTIC** often accommodation which is without the barest of essentials – no fridge, no flooring, sometimes even no **ABUSE** lightbulbs.” The Rev James Harratt, Vicar of Bromley Parish Church and Chair of Bromley Relief in Need.
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“It has been humbling to see so many of our churches say ‘yes’ to meeting a vital need in their local area, to walk alongside them and show, through their actions, the love of Christ.”
_Caroline Clarke, Community Engagement and Social Action (CESA) Team Lead for the Diocese of Rochester_
Photo top
Photo bottom _Community larder, St Philip, Sherwood_
_Anna Chaplain, Christine Seth-Smith makes a socially-distanced community visit._
## **A FOCUS ON THE VULNERABLE ELDERLY**
News coverage during the pandemic also showed the devastation Coronavirus brought to care homes. In a sector already ravaged by years of underfunding and undervaluing of care work, hope was brought by the pioneering ministry of Anna Chaplaincy within the Diocese.
Anna Chaplaincy is dedicated to serving older people, their families and those coping with older life issues such as dementia. It is led in the Diocese by Julia Burton-Jones, Anna Chaplaincy lead and dementia specialist.
Anna Chaplains, and their supporting churches in the Diocese, quickly sought ways to adapt to locked-down care home ministry. Parishes provided details of how residents could access virtual services via Smart TVs and tablets, and Anna Chaplains even delivered pre-recorded services on DVDs.
Aware that some older people had no access to the internet, and with dementia sometimes making it difficult to equate what is happening on a screen with a church service, many hours were spent on the telephone to individuals in their own homes and in care homes, with relationships deepening.
Cards of encouragement, letters and gifts were delivered to staff.
Priorities now include listening and learning from the stories of residents, families and staff, to support them as they make sense of a period of great stress and sadness.
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## **SUPPORTING PEOPLE’S JOURNEY OF FAITH**
_During this time of lockdown and restriction, there has been a flourishing in people’s desire to deepen their walk with Christ. Initiatives supported centrally by the Diocese have given people opportunities to explore their spiritual lives, as well as help them recognise the plan God may have for them._
The aim of the Diocese’s Spirituality Network has always been to help people to deepen their relationship with God.
This did not change during the various lockdowns, and if anything, there has been a growth in interest in their activities.
“This is more than about numbers or zeitgeist – it is about the Church, and the Diocese, being faithful to Christ’s calling to make disciples. Helping them to walk with Christ through difficult times as well as happy times.” The Rev Canon Susanne Carlsson, Diocesan Spirituality Adviser.
Moving their regular offer of spiritual accompaniment online, including the Closer course, they also developed a new opportunity by providing one-to-one online guided retreats.
“For me, before the Closer course, prayer was a one-sided relationship with God. I knew Jesus loved me but it hadn’t sunk from the head to the heart. The Closer course helped me make the journey of this knowledge from head to heart.” (Radi Doncheva,’Closer’ participant).
## **BRINGING MINISTRY TO FRUITION**
At the same time, the training and bringing to fruition of people’s call to ordained or lay ministry in all its forms has also continued unabated, and all supported by the Diocese’s Formation and Ministry Team.
“The Bishop’s Certificate has been a wonderful bonus, completely life-changing in the midst of everything that is going on”
## _Bishop’s Certificate student_
Licensings of clergy and lay ministers to their
parishes moved online, while the ordination of deacons and priests took place under strict Covid-19 compliant restrictions, in both Rochester Cathedral and in locations across the three archdeaconries.
“I can remember the day before, having our temperatures taken, so it was right up to the wire as to whether it would go ahead. There were certainly a few tears shed during the service on the next day.”
## _The Rev Beverley Ejimojo_
Webinars have offered a new way of delivering some formation and training, and were very much focussed this year on well-being.
Over 100 church leaders attended a webinar in relation to Managing Trauma in oneself and
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**VICARS LICENSED TO NEW PARISHES ONLINE**
_The Rev Simon Braid and the Rev Anne Bourne were among some of the first priests in the Diocese to experience an online licensing._
As the new Priest-in-Charge of Hever, Four Elms and Markbeech (also known as the Three Spires), Simon - along with church wardens from each church, the Area Dean, and the Archdeacon of Tonbridge - headed over to Zoom to take part in an online licensing.
“I am now legally in post but it wasn’t quite the same as the big licensing event!” Reflecting on her online licensing, part-time interim, Associate Rector of the Benefice of West Sevenoaks Team Ministry, Anne said: “Zoom enabled my licensing to be a reality albeit virtually and a little more noisy than a normal church service!”
congregations. There were also sessions on How Clergy Thrive, which contributed to the Covenant for Clergy Care and Wellbeing which was given overwhelming backing by the General Synod of the Church of England.
With an awareness of the ongoing support clergy need throughout their ministry, The Rev Jane Edwards was appointed as Bishop’s Adviser for Retired Clergy and she led some Pre-Retirement webinars to help clergy to think and prepare for their retirement.
Canon Sarah Partridge was appointed as Bishop’s Adviser for Self-Supporting Ministers.
In addition to wellbeing, other Diocesan Teams have provided a plethora of webinars offering practical resources for mission and ministry, on subjects as diverse as prayer, sports evangelism, homelessness, community hubs, Thy Kingdom Come, and rural ministry.
## **RECOGNISING EVERYONE’S CALLING**
Diocesan Teams have continued in 2020 to showcase and emphasise the depth, variety and value of all vocations and each personal experience of faith, through its explicit support of the national Everyday Faith campaign.
This has been done, not as another initiative or construct to place upon church leaders and laity, but rather through a culture and consistent showcasing over time of the value of everyone’s calling, through various channels.
A regular section was introduced into the Diocese’s quarterly magazine dedicated to
highlighting and celebrating the story of someone who views their work or daily life as the living out of their personal calling.
Diverse stories, from an NHS nurse working on the Covid-19 frontline, a musician leading a project with children with learning disabilities, to the experience of someone who has recently been confirmed, each story has been powerful and unique.
Elsewhere, the Evangelism working group has produced helpful hints and tips over the year for church leaders on how to encourage an atmosphere of story-telling around individual calling and witness. These have been presented as infographics to help them to be easy and accessible to follow.
Regular ‘It’s Your Calling’ days by the Vocations team moved online with the focus not just on ordained ministry, but lay ministry and everyday vocation.
There have been Bishops’ Study Days on Everyday Faith, and a well-attended 7-week exploration of the Hebrews 12 text – ‘Running the race set out before us’ – led by Archdeacon Andy Wooding Jones. Held online, it explored how we can all seek out the path God has called us to.
The Rev Canon Susanne Carlsson also delivered a timely and apt series of webinars on Discerning God’s invitation in the landscape of the pandemic.
As well as being a privilege and delight to share each person’s ‘treasured calling’, this ongoing effort to help vocation flourish, is a key living out of our Called Together strategy to ‘grow disciples’.
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## **CONTINUING TO GIVE PARISHES THE SUPPORT THEY NEED**
_Diocesan teams adapted fast to the new challenges the pandemic presented, both operational and financial. Ensuring the stability of the Diocese, maintaining the day-to-day support churches needed, and caring for people’s safety and well-being were top priorities._
The Diocesan Office has been closed to visitors and most staff since the end of March 2020, and so while normal office life has come to a stop, the dedication and commitment of staff to serving the parishes has not.
To help limit the financial impact of the pandemic, a third of Diocesan Office Staff were furloughed during 2020 (and some into 2021).
It saw many teams and individuals take on additional work to maintain service levels to parishes.
Staff adapted well to homeworking, with support provided through workstation assessments and portable equipment which enabled a flexible approach to work locations.
“The communication and information we have received from the Diocese has been like ‘gold dust’ and has given us the confidence to carry on in such difficult times.”
_Feedback from Churchwarden_
Meetings successfully transitioned online and staff continued to work professionally while managing a range of differing home circumstances.
Communication was stepped up to help parishes navigate the new landscape. This included the creation of a new Digest, sharing Covid-19 guidance, resources and the latest need to know information, which was shared three times a week.
Additionally, to support churches with the new demand for creating online content, the Diocese shared weekly Reflections from a senior member of clergy, and as needed, provided input into parish services.
Some work was paused, and five of the Church Commissioners’ funded roles were redeployed to help their churches with their day-to-day ministry, rather than focus on their Strategic Development Fund projects.
## **ADVICE AND GUIDANCE**
All the Diocesan Support Teams worked tirelessly to help parishes understand and work within the parameters of new restrictions and guidance, as well as advise on best practice and create helpful resources.
The Children and Young People Mission and Ministry Team remained in regular contact with their network of Employed Youth Workers, encouraging and advising them on how to adapt their ministry, how to maintain contact safely – particularly in the digital sphere – and offering online webinars, signposts to resources and creating their own weekly Ministry@Home sheets full of ideas and inspiration.
They also worked collaboratively with the South East Partnership to deliver targeted online training events for children, youth and families workers, volunteers, church leaders and parents and carers, on issues relevant to the challenging times.
Safeguarding has of course remained a priority, with the full team remaining available from home to parishes for advice and support.
Delivery of core safeguarding training moved online and work continued on the Past Cases Review - a process to establish whether all known cases of concern about the behaviour of clergy and church officers towards children and vulnerable adults, have been considered, risk assessed and dealt with appropriately - with completion expected in 2021.
“This course really made me face up to the fact that abuse can be so undercover, unrecognised and we don’t see it until it is too late and people have been hurt. I have learnt that we have to be more pro-active.”
_Safeguarding training participant_
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The congregation of St Edmund King and Martyr Church, West Kingsdown wait socially-distanced to enter the church
**457** people completed the Foundation level online safeguarding training.
**8** Safeguarding Leadership courses delivered
**809** DBS checks processed
Three networking meetings were held for Parish Safeguarding Officers in each archdeaconry and Safeguarding Induction for clergy new to the Diocese was introduced.
The team’s insight has been particularly valuable in helping parishes and individuals maintain a constant vigilance as to the potential safeguarding risks that could be brought about as new and creative ways to connect with people and deliver pastoral support, as well as offer practical assistance, were developed in response to Covid-19.
## **FINANCIAL SUPPORT**
With a halt to ‘normal’ life due to the pandemic, came a halt to many forms of regular income for churches. Aware of this, the Diocesan Team looked at what could be done immediately to mitigate the impact of the pandemic.
Promoting and helping churches get to grips
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with online forms of giving was one such area identified.
Liz Mullins, Stewardship and Funding Adviser in the Diocese of Canterbury was seconded to Rochester in May 2020 for two days a week to give this area extra resource.
Her expertise and encouragement saw significant development of the giving pages on the Diocesan website, and the collating and sharing of information and resources.
For many churches, this was their first time developing online forms of giving, with the focus moving from contactless card readers to online giving, particularly when churches were shut.
A noticeable trend has been a move by those who regularly gave cash, either in the collection plate or through weekly envelopes, to giving by monthly standing orders.
There has also been work undertaken with individual parishes around stewardship and generosity, with several giving campaigns planned for 2021.
The financial strain on parishes however has been real and painful.
Through prayerful consideration and by listening to the experiences of parishes, the Diocese was pleased to be able to the launch the Diocese of Rochester Covid-19 Emergency Relief Fund in April 2020.
This fund offered an initial £750,000 package of support in the form of loans and grants, to help parishes in immediate financial need.
The Diocesan Team were also delighted to receive generous donations from several parishes in support of the fund.
These parishes contributed an additional £26,000 to the package of funds already made available by the Diocese.
To date, the Diocese of Rochester Covid-19 Emergency Relief Fund has made the following awards:
- 48 grants made of £5,000
• Loans to five parishes totalling £58,700.
The Rev Mandy Young, Vicar of St Edmund’s King and Martyr, Dartford, whose church received a grant, says it made a huge difference to their morale and the church’s ability to ‘work hard and stay focused on mission’ in their community at a difficult time:
“I want to say a massive ‘thank you’ to the Diocesan team for all their help.
“The emergency grant made a huge difference to us. It has meant we have been able to keep going when the church was receiving no income from lettings at all, or from social events and collections.”
**FINANCIAL BOOST FOR CHILDREN’S WORK**
_The Children and Young People Fund also continued to support creative ministry during the year through its grant making scheme._
Initiatives supported included ‘Christmas in Box’ at St Margaret’s Church in Rainham, which saw 400 boxes full of festive family fun and crafts about the Christmas story, delivered to families in the local area as they prepared for a lockdown Christmas.
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By the end of 2020 there were **129** online accounts.
Total online transactions in 2020 were **£80,004**
The average donation value was **£19.47**
**RE-ORDERING WORK GETS CHURCH READY TO WELCOME**
_An extension at St Lawrence Church, Bidborough providing a toilet and other internal reordering, has meant the church is ready to offer a warm welcome when Covid restrictions allow._
“I would like to thank the DAC for the tremendous support, often in trying times and at short notice, that they gave to the project over the years. “It was wonderful to have their support and the sense that they were ‘on our side’ to help get the project done.” Church warden, St Lawrence Bidborough.
## **PROPERTY AND CHURCH BUILDINGS**
Due to the impact of Covid-19 and further reduction of the property budget, the Quinquennials (both inspections and works) were deferred in 2020 except for some essential works.
The focus of the Surveyors Team moved primarily to Health and Safety and reactive works.
Priority was also given to works which would add value to the life in a parsonage house, such as continuing with some kitchen and bathroom refurbishments and other improvements.
The Diocesan Advisory Committee continued to work throughout the pandemic and helped see through to completion some vital re-ordering projects.
With support from the Diocesan Advisory Committee, two churches - All Saints’ Church in Orpington and St Botolph’s Church in Northfleet - received almost £155K worth of funding between them as part of the Government and Historic England’s Heritage Culture Recovery Fund, enabling them to further use the church building for community use.
“Our thanks go to Sarah Anderson, Diocesan Advisory Committee (DAC) Secretary, and John Bailey, Architect at Thomas Ford & Partners, for all their guidance and support.”
_The Rev Cyril Showes. Priest-in-Charge at St Botolph’s, Northfleet_
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Photo left
_England Mental Health First Aid Course (MHFA)_
Photo right
_Pupils from Platt Church of England primary school’s monthly Foodbank Friday_
## **PAYING ATTENTION TO WELLBEING**
Awareness of issues around mental health and well-being grew significantly during the pandemic. The mental and physical health of communities, as well as church officers and diocesan staff has been a priority.
Alongside this has been a concern for mitigating the risk of burnout, strain and anxiety of both clergy and Diocesan staff.
To help, as many opportunities as possible have been taken through regular communication, to encourage people to be aware of their emotions and mental health, of the importance of taking time off, and the signposting to well-being resources.
Dr Deborah Watkins, in her role as leader of the Diocesan Counselling Service, delivered webinars to clergy, lay ministers, and diocesan and cathedral staff around Developing Positive Strategies for Stress and Mental Wellbeing
The Children and Young People Team also ran a virtual minister’s retreat, with care packages sent in the post prior to the event.
- “Thank you so much for yesterday, the whole day was just what I needed.”
_Jo Gavin CC Orpington._
Seeing the growing mental health crisis that was developing in the wider community too, the Diocese’s Community Engagement and Social Action team worked with Mid-Kent MIND to deliver the England Mental Health First Aid Course (MHFA) to clergy and lay leaders and volunteers across the Diocese.
The aim was to better equip them to support their communities, as well as themselves, during this time.
The course accredits people as Mental Health First Aiders and gives them an in-depth understanding of mental health and the factors that can affect wellbeing as well as practical skills to spot the triggers and signs of mental health issues.
Over 100 clergy and lay people have been trained to date.
Some churches are supporting their Church Community Volunteers to take this course; the Archdeacons are also funding some Clergy places in each Archdeaconry; and the CESA Team has funded further places for Community Volunteer Leaders.
Bishop Simon Burton Jones, who is one of those who has taken the course said: “I am so pleased to have taken the Mental Health First Aid course. A good recovery from the pandemic surely means better attention to such needs.”
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_“Our schools’ and Trust values have promoted resilience, love and hope for a safe future in our schools - never have they been more relevant. Our priority is keeping our school communities safe and thriving.”_
Leaders from the Medway Anglican Schools Trust - which runs four Primary schools within the Diocese.
## **OUR SCHOOLS**
The response of our Church schools during the pandemic has been generous, creative and accommodating, exhibiting the professional traits we have come to expect from our teachers but which was no less remarkable for it.
The Diocesan Board of Education has been in constant touch with headteachers and chaplains throughout the pandemic offering support, advice and encouragement.
“Even though our ability to visit schools in person was made almost impossible over the past year, we know from our calls of the many creative ways of engaging with the whole school community that have been explored. “
_Virginia Corbyn, Deputy Director of Education._
Joint projects such as food banks have seen church schools and parishes serving their local
## community together.
Initiatives including Hearts for Homes have helped those in schools to stay in touch with their nearby residential homes.
Since March, many clergy and church members have ‘zoomed’ acts of worship into classrooms making sure that the love of God is proclaimed loud and clear week by week.
The Rev Julie Bowen, Chaplain to St Olave’s Grammar School says that being a chaplain at this time has been very different and has meant finding new ways of just being there:
“We cannot use the Chapel so we have developed a wellbeing area. We can’t meet together in the hall so all Assemblies go into the classes either filmed or on audio Power Point.
“In the quiet moments, when others are not around, I am able to prayer walk the school and pray for classes, students and all staff. “
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## **FINANCIAL OVERVIEW**
_Net Income on all funds was a surplus of £2.8M (2019: £1.2M). The Operating Result on the Common Fund was a deficit for the year of £0.91M (2019: £0.54M). The Diocese’s financial strategy seeks to achieve a financially sustainable position._
Note: Incumbents and Associates benefited in 2019 from a transfer from the Diocesan Pastoral Account of £500K.
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Note: From 1 January 2020, DBF Fees were recovered in full by the RDSBF of £0.4m (2019: £nil).
25
## **SUPPORT COSTS FOR PARISHES IN 2021**
## **Support Costs for Parishes**
**The Diocese of Rochester is reliant on the payment of Parish Offers which, together with DBF Fees, represent 83% (2019: 85%) of income**
|**Cost of a Full-time Incumbent (£)**
Current Stipend (from April 2021#)
National Insurance (8.0%)
Pension (24.22%)*
Parsonage Upkeep budgeted for 2021 (2020B: £4,590)
Cost of a Full-time Incumbent
# at the same level as April 2020
* excluding pension deficit payments of 11.9%
**Diocesan Support Costs (ex Parsonage Upkeep) (£K)**
Number of benefices
**Costs of Mission, Future Ministry and National Church (£K)**
Curates
Ordinands
Wider Diocesan Mission
Contributions to National Church
**Contribution required for 101 (2019: 97) benefices unable to cover the**
**allocated cost of a wte Incumbent and Diocesan Support Costs (£K)**
**Average Contribution required from Benefices**|**2021**
**Co**
27,260
2,181
6,602
5,257
**41,300**
**2019**
**2020**
**2021B**
**1,908**
**1,851**
**2,138**
**182**
**179**
**178**
**2019**
**2020**
**2021B**
987
862
920
493
650
693
445
425
490
631
508
841
**2,556**
**2,445**
**2,944**
**1,481**
**1,478**|**2021**
**st per benefice**
**£41K**
**£12K**
**£16K**
**£8K**
**£77K**|
|---|---|---|
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_New deacons with Rt Rev James Langstaff, Bishop of Rochester at Ordination service_ 27
## **FINANCIAL STRATEGY**
_The Financial Strategy is the achievement of a financially sustainable position and to successfully underpin the diocesan strategy of Called Together._
## **FINANCIAL SUSTAINABILITY**
The existing Financial Strategy was agreed in February 2018. The purpose of this financial strategy is to underpin Called Together and enable it to come to fruition.
It has been stated that we face two principal risks with our financial situation. First, we make plans that we cannot afford and end up in financial difficulty. Second, we limit our ambition and fail to address the underlying issues of general church decline. Neither of these would be satisfactory. Our aim has been to address the underlying issues that face the Diocese and provide a platform for growth, and all the while ensure we have the funds necessary to achieve this and maintain financial sustainability going forward.
The Diocese has run at a Common Fund deficit for the last several years. The DBF has been aiming to achieve a position where the day-to-day income and expenditure of the Common Fund are in balance, while using designated and restricted funds for the purposes for which they are held, and in particular to fund capital and growth initiatives.
The Financial Strategy envisaged a balanced budget being achieved by the end of 2020. We set an ambitious break-even budget in 2020, which was dependent on the successful introduction of Indicative Offers and the recruitment of a Giving Officer, among other things. Sadly, the achievement of break-even did not prove possible last year with our plans being heavily hindered by the Covid pandemic.
In the event, in 2020 we achieved a Common Fund deficit of £914K (compared to our fall-back Base-case Budget of a deficit of £833K). However, this was after the benefit of a Continuity Grant, applied for and secured, of £320k from the National Church Institutions.
In 2021, we are now budgeting for a Common Fund deficit of £1.8M and currently anticipate this to be difficult to achieve given that projected Parish Offers are running at c£200K below budget. The outturn will be largely dependent on the recovery from the Covid-19 pandemic. We will need to establish the level of the post-Covid structural deficit. The ongoing sacrificial support from parishes in maintaining contributions is vital to the ongoing maintenance of our mission and ministry.
We are now starting the process of setting the budget for 2022 and as part of that we are also developing a strategic 5-year financial plan based on the results of the Strategic Review that is being conducted. Our aim must be for the 2022 budget to be prudent, and for the strategic financial picture to be sustainable going forward.
Historically, we have aimed for a break-even position on the Common Fund, and the only significant ways to reduce the Common Fund deficit in the short-term, alongside the pursuit of strategies to support mission in the parishes such as Called to Grow, are the ongoing pursuit of increased contributions from parishes, reducing clergy numbers (with the impact of perpetuating decline), and with this making hard decisions not to subsidise parishes which are not thriving and are not covering their ministry and diocesan support costs.
The central support function is already overstretched and the opportunity to cut costs is limited.
It is now widely recognised across the Church of England that in order to attain a long-term sustainable financial position and address the deep-seated issue of church decline, we will not only need to sustain the funding of the existing parish structure and invest in the slow renewal and recovery of the inherited church and its
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mission, but alongside this we will need to be bolder in investing in future ministry and the emerging church.
We need to be able to invest in areas of new developments where the population is growing, in intentionally reaching out to the unchurched and de-churched and in areas of demographic and cultural change and diversity, where different styles of church are required. We also need to support this in our recruitment and training of clergy and lay ministry, and in the oversight of establishing fresh expressions of church and church planting.
As progress begins with the review of the diocesan strategy and the recruitment of a new Bishop, it is clear that more expenditure will need to be invested to support mission and growth in the Diocese, if we are not to bequeath an ever-growing endowment to a smaller and smaller number of future beneficiaries. A blind pursuit of a short-term balancing of income with expenditure will not be wise policy, given Jesus’ teaching in the Parable of the Talents to invest our resources wisely in building the Kingdom of God.
This leads to a delicate balance needing to be made about current investment against the preservation of capital for the future, all the while seeking to balance our existing funding of the parish system.
## **STRATEGIC REVIEW**
The Strategic Review was initiated in late 2020 as a mid-point review of Called Together and in response to the opportunities and challenges presented by the Covid pandemic and other world issues and to establish the basis for financial sustainability going forward.
The Strategic Review has shown:
• a clear commitment to and desire for the Called Together strategic framework, with no opportunity for significant cost increases or reductions;
• very little opportunity for further cuts to diocesan staffing (unless legal obligations are to be ignored);
• in 2020, 101 parishes did not cover the cost of their ministry and diocesan support costs, so were subsidised from the Common Fund to a total of £1.5M per year.
It is also clear from the Strategic Review that there is a need and desire to grow the church in its ministry and mission. There is a continued desire to invest in strategic parishes; especially those which are thriving but cannot make a full Parish Offer due to deprivation/demographics. In addition, there are real opportunities to invest in growth across the Diocese, through strategic development of buildings and placement of people resources (many of them lay).
A new Bishop is due to be appointed in 2022 and s/he will seek to lead us no doubt with a new vision and this will lead to a refinement of the investment objectives.
This leads us to a need to consider the ability to fund such investment requirements and the potential available to us to access necessary funding.
## **COMMON FUND AND INDICATIVE OFFERS**
The Common Fund is the principal unrestricted fund that deals with the general income and expenditure of our Diocese.
_Hot food project , Interfaith Forum, Bexley_ 29
The management of the finances and resources are framed in such a way which reflects who we are – an interconnected family or fellowship of Christians dependent upon and supportive of one another.
This connection brings with it a shared concern and responsibility for one another.
Thanks to the generous and often sacrificial contributions of parishes into the fund each year, we are able to ensure a number of things including:
• that ministers, ordained and lay, stipendiary and self-supporting are available across the area of the Diocese;
• that the mission of the local church is supported, allowing us to retain a vital presence in our communities;
- that new vocations to ministry are discerned and developed; and
• that we make our fair contribution to the costs of the National Church.
A new system of Indicative Offers for parishes was established in 2019. This is to help inform parishes as they consider their contribution to the Common Fund and to apportion contributions on as fair a basis as possible.
Whilst retaining the voluntary nature of Parish Offers, the Indicative Offer enables parishes to assess their pledged offers based on the total mission and ministry funding requirement of the whole Diocese.
It is hoped that the system of Indicative Offers together with targeted and supportive follow-up with key parishes by the Archdeacons and Area Deans, assisted by the Finance Team, the level of Parish Offers be maintained at a sufficient level to meet our mission and deployment plans.
A parish’s Indicative Offer is calculated as shown in the diagram below.
There are several variations and exceptions to the basic calculation. For example, benefices which in the previous year were unable to contribute sufficiently to cover the cost of the Ministry Cost and Diocesan Support Cost are provided with a total Indicative Offer that is capped at 50% of Gross Income (unrestricted).
## **PARISH OFFER EVALUATION PANEL**
In rolling out the new Indicative Offer system, we sought to establish a more formal system for receiving and responding to Parish Offers.
This support needs to be in looking with the parish at the resources it has, and in some cases hasn’t, so that where there is a challenging situation it is known and shared.
In achieving a fair level of offer which adequately reflects the cost of ministry and support that a parish receives, the emphasis is on collaboration and support. Where there are concerns of hardship these need to be seen and dealt with, not become another weight for the parish to carry. Equally, if a parish is able to meet its share, but doesn’t, it needs to be clear that others including its neighbours will be picking up the cost.
With this in mind, we introduced a Parish Offer Review Panel, a sub-committee of the Finance Committee comprising clergy and laity, which will deal with issues from parishes concerning the level of Parish Offers. Because of the Covid crisis the Panel has yet to meet. It is now planned to start meeting in early 2022.
## **FINANCIAL IMPLICATIONS OF THE COVID-19 CRISIS**
We understand that parishes have been severely challenged with their income as a result of the Covid-19 crisis which has led to the closure of churches and ceasing of gathered worship. We
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are asking parishes to do all they can to maintain Parish Offers, which are largely used to support the clergy stipends.
A commentary on the impact of COVID-19 is provided in the Financial Review on page 37.
## **2021 BUDGET AND OUTLOOK FOR 2022**
The budget for 2021 is built on an assumption that Parish Offers will further decline to £8.0M (2020: £8.4M) as the Covid-19 pandemic continues into 2021, with the anticipation and hope that in the second half of the year income levels will recover as the economy re-opens and that Parish Offers will recover in kind.
A range of scenarios were considered, including a worst-case scenario to ascertain the impact and to ensure the Diocese has sufficient reserves and liquidity to weather that eventuality.
The level of parish contributions anticipated is clearly uncertain and dependent on the severity and longevity of the Covid-19 pandemic. Whilst parish contributions, in the circumstances, have held up remarkably well in 2020, largely because many parishes have been able to utilise reserves, it is believed that the ability to continue this level of contribution will become increasingly difficult as the pandemic persists.
We have reserves and assets to enable us to sustain lower income levels if we absolutely have to and this is a time where we need to be as careful as we can with our expenditure, but also to use reserves if necessary.
Much of the expenditure for the Diocesan Office is related to staff that we employ. The budgeted Diocesan Office Support Staff is stable at 35.9 WTE, the same level as the 2020 budget, although there have been changes in the roles to support parishes in what they need through this period.
Overall headcount of Diocesan payroll is for fulltime equivalents of 49.3 (2020A: 48.9; 2020B: 46.9; 2019A 48.6). The Diocesan payroll headcount now includes 7.4 staff on the DBF payroll who are not funded by the Common Fund. This includes 3 Growth Enablers, funded by Diocesan Pastoral Account, and 3 staff funded by the Strategic Development Fund of the Church Commissioners.
Parsonage repair and maintenance has been prioritised and is being maintained in 2021 at 2020’s originally budgeted level of £750K (including insurance). In addition, £500K catch-up work over two years (funded from the Diocesan Pastoral Account) continues and the second tranche of £250K will be spent in 2021, bringing total budgeted property expenditure in 2021 to £1.0M.
## **LIQUIDITY POLICY**
The RDSBF’s liquidity policy has been to maintain minimum liquid reserves of £2.75m (defined as monies either on current account or on bank deposits of up to 35 days’ notice, of which £1M should be in cash or on bank deposits of up to seven days); being £2.0M for the purposes of working capital and a sum of £0.75m (representing just under 10% of total deposits by parishes for the Church Repair Fund (CRF) and Diocesan Loan Fund (DLF)) to cover potential withdrawals from the CRF and DLF. In addition, for prudent “risk” reasons (as opposed to liquidity considerations), at least 10% to 15% of available funds for investment, subject to a maximum of £2.5m, should also be held in cash under the terms of the Cash Deposits Policy - in this case through a range of maturities up to one year may be utilised.
In the light of the Covid-19 crisis, the Trustees are confident that the RDSBF has a sufficient asset base to cover liquidity needs in the foreseeable future.
The overall cash balances at the 2020 year-end stood at £9.0M (2019: £5.2M) (being in excess of the current policy level of minimum liquidity and cash reserves of £5.0M).
## **RESERVES POLICY**
The Trustees require reserves to:
• meet short-term excesses of expenditure over income;
• provide funds for expenditure with long-life horizons; and
• fund recognised future infrastructure and strategic policies which will require resources, such as the changing form of ministry and the deployment of clergy.
It is the RDSBF’s policy in order to cover such eventualities, reviewed in March 2019, to maintain free reserves in excess of £5M.
Common Fund reserves at the year-end stood at £5.2M (2019: £6.8M). This is in excess of the amount required under the policy. The Trustees consider it important to carry additional reserves to cover unforeseen eventualities and the possibility of future operating deficits.
## **DESIGNATED RESERVES**
The Trustees may designate unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserves are reviewed on an annual basis and returned to the Common Fund in the event that there is no further need to retain them for the purpose of their
31
designation. A description of each reserve together with its intended use is set out in Note 16.
## **RESTRICTED AND ENDOWMENT FUNDS**
As set out in Notes 17 and 18, the RDSBF holds and administers a number of restricted and endowment funds. None of these funds are available for the general purposes of the RDSBF, although the income of endowed funds may be used for certain restricted or unrestricted purposes.
## **INVESTMENT POLICY**
The Board’s investment policy is based on the two key principles of Preserving Inter-generational Equity and Ethical Investment:
## **Preserving Inter-generational Equity**
The Trustees are aware of their long-term responsibilities in respect of endowment funds 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.
Unrestricted and restricted investments are invested to balance income, liquidity and the maintenance of capital, and are held in listed and unlisted equities and funds and fixed interest bonds in managed funds.
The Bishop’s Council has agreed to seek an appropriate minimum total return of at least CPI plus 3%, whilst at least maintaining the capital value of its non-property investments in real terms.
## **Ethical Investment**
RDSBF follows the guidance of the Church of England Ethical Advisory Group. In practice, this means applying an ethical screen to the portfolio which precludes direct investment in companies which have more than 10% of their turnover in armaments, pornography or tobacco. It also looks to invest in companies which have high standards of corporate governance and act in a responsible way towards stakeholders.
## **Fund Managers**
In January 2020, the Diocese transferred its investment portfolio (excluding property investments) to Mercer Global Investment Management Ltd. (“Mercer”). Mercer’s investment platform provides the Investment Committee of Bishop’s Council with a greater level of flexibility to align the portfolio with the overall objectives of the Diocese and the flexibility for Mercer to respond to
market changes and changes in the performance of specific funds and fund managers. The current portfolio includes allocations to a broad range of asset classes, with a strong focus on sustainability issues.
## **GRANT MAKING POLICY**
The Memorandum of Association of the RDSBF explicitly permits the RDSBF to make grants in pursuance of its objects, and the nature of grants made in 2020 is indicated in Notes 6 and 8.
Grants are made to the National Church to cover a proportion of its central costs and also to cover training for ministry (see Note 6).
The Diocese operates a successful £500K fund (launched in 2018) to support local initiatives in connection with mission to Children & Young People (funded by a £250K grant from the ColyerFergusson Charitable Trust; a £125K grant from Trust for London income; and £125K from RDSBF’s Hollywood Manor Fund).
The Missional Property Fund was launched in early 2018, with a primary aim to support projects which allow parishes to open up church buildings for mission. The fund matches external funding from Marshall’s Charity with restricted diocesan funds to provide a £645,000+ five-year fund to enable changes to church buildings. Grants have supported the installation of WCs, access ramps and doors, lighting, Audio Visual equipment and WiFi, heating systems and more. To be successful an application must clearly state how the changes are missional and link with the activities and plans for their community.
In 2018, 8 churches were awarded grants totalling £116,000. In 2019, 10 churches shared a grant pot of £116,500. In 2020, Marshall’s Charity had reduced income and were only able to make available £37,000; instead of disappointing a large number of churches by running an application process when so few would be successful, St John’s Chatham was invited to apply for the whole amount to enable much needed new facilities to be installed, making a significant difference to the work at the Medway Centre of Mission and St John’s.
Grants are paid to other connected charities and to other charitable projects which appear to RDSBF to support the furtherance of RDSBF’s objects, including grants to assist our Companion Dioceses of Mpwapwa and Kondoa in Tanzania, Harare in Zimbabwe, and to promote links with the Evangelical Lutheran Diocese of Estonia.
## **PROPERTY**
There are three types of property that the RDSBF owns: glebe investments (historic land
32
and buildings), clergy houses, and RDSBF owned corporate property held for operational purposes.
The RDSBF will consider the disposal of property for the following reasons:
• To replace unsuitable parsonages;
• To accommodate the changing geographical deployment of clergy within the Diocese;
• To realise the development potential in some properties, thereby releasing funds to invest in our mission; and
• To rebalance our overall glebe investment portfolio and to reduce our exposure to specific direct property investments.
## **CLERGY HOUSES STRATEGY**
Inspired by the Called Together vision, RDSBF operates a Clergy Houses Strategy. It sets out the Clergy Houses Committee’s approach to clergy housing for the coming years and reaffirms the work and aspiration of the Committee.
Clergy houses often hold a significant place in the hearts and minds of the local church and community, as well as our ministers that live and serve within them.
The ambition is for an approach to housing which, while mindful of this, is also:
• flexible
• realistic, and
• responsible.
Key objectives over the coming years are that clergy housing should:
• Be suitable and appropriate in its use of diocesan funds;
• Be affordable for the occupant and practical as a home and working environment;
• Facilitate mission and ministry across the Diocese; and
• Achieve good standards of environmental sustainability.
The Trustees commit significant capital reserves to the purchase and improvement of housing for clergy. The RDSBF is also responsible for housing its training curates (currently 22 at any one time). The Clergy Houses Committee oversees the repair and maintenance of clergy houses.
In its role as the Diocesan Parsonages Board and as the housing provider, RDSBF is responsible for the provision, management, maintenance and improvement of approximately 230 houses, principally for the benefit of clergy.
During the year, in total £813K (2019: £1.00M) was
spent on properties under the Clergy Property Measure 2018 and the Repair of Benefice Buildings Measure 1972. This includes £603K (2019: £693K (including insurance)) charged to the Common Fund. This incorporates quinquennial building surveys and arranging for repair or improvement by contract or by order, and supervising and administering such works of repair or improvement. The majority of the operational property assets are held for the long-term use of the RDSBF, rather than for re-sale, and are carried in the accounts at their deemed cost in accordance with the provisions of Financial Reporting Standard 102.
The Diocesan Surveyor manages and maintains an ordering system, a 10-year rolling repair programme, and monitors and controls the annual budget. The scope of the work includes all dayto-day and responsive and programmed repairs, including quinquennial works, and day-to-day repairs to (for example) roofs, windows, kitchens, bathrooms, electrics and plumbing.
The Property Team maintains a property database and advises on the retention and sale of each property as and when Archdeacons and the Clergy Houses Committee have identified former ministry housing as being surplus to requirements.
The Finance Committee approves proposals for any purchase or disposal of property. It will additionally consider, on the advice of the Archdeacons, whether rental of property is particularly appropriate in individual circumstances.
This strategic approach to our property requirements is worked in close association with the Archdeacons.
## **FINANCIAL RESILIENCE AND STEWARDSHIP**
Each parish faces significant challenges as the financial regulatory environment imposes ever more stringent requirements upon PCCs.
The Finance Team in Diocesan Office supports parishes in relation to compliance with the Charity Commission and accounting. PCCs are becoming increasingly aware of due diligence in their financial affairs and the need to demonstrate to their congregations that they are obtaining value for money.
Stewardship training and support is provided to help parishes to raise income levels. Church finances would be transformed if the level of giving by church members were raised from its present level of 3.4% of personal income to the national aspiration of 5%.
Parishes are encouraged to take advantage of the various central purchasing schemes run by the National Church.
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## **FUNDRAISING**
The RDSBF provides parishes with guidance to encourage them to adhere to best practice in their fundraising activities. It drives one-off campaigns around specific and strategic fundraising needs and supports and enables strategic relationship management.
The RDSBF does not engage with any direct marketing activities, nor does it share or purchase any donor data with or from third parties. The RDSBF rarely engages with independent professional fundraisers and, if so, will always ensure there is an appropriate contract in place.
## **VOLUNTEERS**
The RDSBF 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 RDSBF greatly values the considerable time given by all committee members and other volunteers across the Diocese in whatever capacity they are working in pursuit of the Church’s mission.
The ‘in kind’ value of volunteer time to the operations of the RDSBF is particularly difficult to measure in a meaningful way. It is for this reason that no estimate of the value of this time has been included in the financial statements.
## **RELATED PARTIES**
There are a number of related parties with whom the RDSBF has financial links and/or has financial transactions with, including the General Synod, Church Commissioners and Archbishop’s Council.
The RDSBF has to comply with Measures passed by the General Synod of the Church of England and also makes certain annual payments to the Archbishops’ Council towards the running costs of the National Church.
As disclosed in Note 7, certain costs of the bishops, including stipends and pension contributions, are borne by the Church Commissioners.
## **PAROCHIAL CHURCH COUNCILS (PCCs)**
The RDSBF is required by Measure to be custodian trustee in relation to certain PCC property, but has no control over PCCs, which are independent registered or excepted charities.
The accounts of PCCs and deaneries do not form part of these financial statements. PCCs are able to influence the decision making within the RDSBF and at diocesan synod level through representation to those bodies and through the input of their deanery synods.
## **OTHER RELATED PARTIES**
• The Church of England Pensions Board: To which the RDSBF pays retirement benefit contributions for stipendiary clergy and certain ordained employees. It also offers schemes to provide housing for clergy in retirement.
• The Dean and Chapter of Rochester Cathedral: Some diocesan events held in the Cathedral are paid for by the RDSBF. The RDSBF rents car parking space and housing for diocesan clergy from the Dean and Chapter and provides safeguarding services to the Chapter under a service level agreement.
• The Rochester Diocesan Board of Education: The Principal Office is located at Diocesan Office. The Board of Education supports and encourages churches and parishes across the Diocese of Rochester through the education of children and young people. The Bishop of Rochester is President of the Board of Education and the Bishop of Tonbridge serves as Chair. The RDSBF from 2021 undertakes the accounting function for the Board of Education under a service level agreement.
• St Augustine’s College of Theology: The College is located on the Malling Abbey estate owned by the RDSBF and is a lessee. Ordinands, Curates and Lay Workers from the Diocese are trained by the College.
• St Benedict’s Centre: The Centre is located on the Malling Abbey estate owned by the RDSBF and is a lessee. By virtue of office, the Bishop of Rochester and the Diocesan Secretary are each a Trustee and Director. The Centre offers non-residential facilities for individuals or groups to go on retreat, study or meet.
• Emmaus Developments Limited (the trading subsidiary of St Mary & St John, Chatham PCC): The company has its registered office at the Diocesan Office.
• A number of discretionary trust funds administered by employees of the RDSBF.
Transactions with the main categories of related parties are identified in appropriate places throughout the financial statements.
Where materiality of transactions merits more detailed disclosure, this is given in Note 15 to the financial statements.
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## **MITIGATION OF RISKS AND UNCERTAINTIES**
## **BISHOP’S COUNCIL RESPONSIBILITY**
The Board is responsible for ensuring that effective and adequate risk management and internal control systems are in place to manage the major risks to which the Diocese is exposed.
It has a clear mechanism for obtaining assurance on the management of risks. It agrees the approach to risk including overseeing the process to identify and assess key risks and understanding how those risks are managed and mitigated.
The Trustees annually consider, evaluate and record the major areas of risk to which the RDSBF is exposed, assessing the likelihood and impact of those risks crystallising, together with measures in place to manage and mitigate such risks (see below).
approach to identifying, assessing and dealing with the risks facing us to ensure that they do not exceed the level of risk we are willing to assume.
The framework is designed to manage, rather than to eliminate, the risks to our objectives.
## **PRINCIPAL RISKS**
The risks in the Risk Register are ranked using a ‘traffic light’ scheme (red/amber/green) based on a score reached by multiplying the score for ‘Likelihood’, the average of the ‘Financial Impact’ plus ‘Reputational Impact’ score, and the ‘Risk Tolerance’ score. The key risks in red are identified as those which have high likelihood and overall impact.
The risks which are currently assessed as scoring highest, and the outline mitigating strategies to address them, are as follows:
## **RISK ASSESSMENT MODEL**
To support the identification and evaluation of our key risks, we use a risk assessment model which incorporates our key activities of mission and ministry as shown in the diagram to the right.
The five key areas of risk considered and the mitigation measures in place relating to the risks identified are then described, with any particular measures in the process of being implemented and the timing and the risk owner identified as responsible for managing this risk.
## **RISK MANAGEMENT FRAMEWORK**
Risk is managed effectively through an appropriate risk management framework designed to support informed decisionmaking regarding the risks that affect our ability to achieve our mission objectives.
The framework provides a consistent
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## RISK AREA
• Safeguarding. The reporting of nonrecent and current cases of abuse of children or vulnerable adults in the Diocese, resulting in a breach of trust and negative impact on the victims/ survivors, impacting the church’s reputation and potentially leading to litigation and compensation claims which are not covered by insurance. New cases may be reported because of the publication of reviews of safeguarding cases in faith organisations, including the Government commissioned Independent Inquiry into Child Sexual Abuse.
• Remedial work created by the Past Cases Review impacts on the effectiveness of the Diocesan Safeguarding Team.
• Impact from a prolonged epidemic resulting in the closure of churches, the cessation of worship and the reduction of income of parishes, and thereby impacting Parish Offers and the income of the RDSBF, the loss of dividend and property rental income and substantial reductions in underlying investments valuations.
• Parishes experiencing stagnant or declining membership, impacting the ability to conduct viable mission or growth initiatives at a local level and increasingly being unable to pay for ministry being provided and/or donate as generously as they would wish.
• Nationally divisive issues leading to loss of clergy and/or congregations and finances and impacting the church’s reputation.
• Deployment of clergy that involves altering the ministerial oversight in local churches.
• Financial operating deficit leading to breakdown in trust with parishes and the inability to maintain support to legally committed ministry.
• Information security, IT systems availability and performance, staff proficiency in using IT systems.
## MITIGATION STRATEGY
• An appropriate response that is victim/survivor focussed, especially respects the dignity of victims responding with transparency, humility and contrition. Investigations to be thorough and in compliance with current guidance, ensuring sound coordination and communication between individuals and teams in the Diocese as well as external agencies and NCIs.
• Provision of an electronic case management system. An independently audited and resourced safeguarding team, which is professionally supported and supervised with constant review of resources (increase of staffing in 2020 and 2021).
• Communications strategies well-rehearsed and co-ordinated with Church House, Westminster & Lambeth Palace.
• Provision of satisfactory training and safe recruitment and management of all those engaged in contact with children, young people and adults at risk of harm.
• Independent safeguarding Insurance panel. Insurance and funds available to provide compensation and support for victims/survivors.
• Maintaining a conservative liquidity policy with sufficient cash reserves to weather the impact on income and cash withdrawals of parishes’ funds, seeking access to debt finance and National Church assistance with liquidity, and an adequate reserves policy to deal with reductions in income. Crisis management through the duration of the crisis that engages with parishes and provides advice and where necessary liquidity through loans and grants.
• Strategic Framework, Called Together, applied. Effective monitoring of mission goals through deanery reviews, with assessment of the financial impact of the consequences. Supporting parishes by implementing local plans and providing support to reverse decline and building resilient and growing churches.
• Strong episcopal leadership and professional support in handling difficult issues and sensitive negotiation with churches concerning the pastoral, operational and financial implications.
• Archdeaconry Steering Groups. Implementation of the Ministerial Deployment Tool. Legal process for pastoral reorganisation, involving extensive consultation.
• Financial Strategy that sets out the approach to achieve a financially sustainable position, regular financial planning and budgetary control. Introducing the Common Fund and new system of Indicative Offers in 2019.
• In response to the increasing risk in this area, work to further improve our security measures to protect unauthorised access to IT systems and safeguards against potential vulnerabilities in the IT network.
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## **FINANCIAL REVIEW**
_There was a Net Income surplus for the year of £2.8M (2019: £1.2M). Net movement in funds was £2.8M (2019: £3.1M). The Common Fund shows an operating deficit for the year of £0.91M, which compares to the operating deficit last year of £0.54M. The reserve balance on the Common Fund was £5.2M as at 31 December 2020 (2019: £6.8M), which slightly exceeds the requirement under the reserves policy._
## **FINANCIAL PERFORMANCE – INCOME AND EXPENDITURE**
The Statement of Financial Activities (on page 48) shows an overall Net Income surplus for the year of £2.8M (2019: £1.2M) after profits on the sale of property of £1.8M (2019: £nil) and gains on investments of £2.1M (2019: £2.8M).
The Common Fund shows an operating deficit for the year of £0.91M (2019: £0.54M). This compares to a budgeted operating deficit of £0.83M (2019: deficit £0.60M).
After taking account of gains on investments of £0.6M (2019: £1.2M) and a loss of £52K on the sale of properties (2019: £nil), the Common Fund showed a Net Income deficit for the year of £0.35M (2019: deficit £0.66M).
Designated Funds showed a Net Income of £0.82M (2019: £nil) representing a profit on sale of properties of £0.79M (2019: £nil) and gains on investments of £30K (2019: £nil).
Restricted Funds show an operating deficit £0.24M (2019: deficit £1.0M) and a Net Income surplus of £0.77M (2019: deficit £1.0M) after profits on sale of properties of £1.0M (2019: £nil) and losses on investments of £8K (2019: £nil).
Endowment Funds had an operating surplus of £12K (2019: deficit £143K) and a Net Income of £1.5M (2019: £1.5M) after gains on investments of £1.5M (2019: £1.7M).
The main income of the Diocese is Parish Offers, the money given by parishes to the Diocese to fund mission and ministry and in particular the costs of clergy stipends, pensions, housing and training, which are charged to the Common Fund.
Income from Parish Pledged Offers was £8.40M, and £8.79M including DBF Fees of £386K, (2019: £9.06M, excluding DBF Fees which before 2020 were retained by parishes) and together with DBF
Fees represented 83% (2019: 85%) of the RDSBF’s unrestricted operating income.
The other main sources of income in the year were donations and property and investment income. Donations (including grants) were £526K (2019: £166K), and property rentals and investment income of £1.30M (2019: £1.45M).
Total expenditure on the Common Fund was £11.5M (2019: £11.22M) and in all funds was £12.9M (2019: £13.5M).
During the year, the RDSBF paid stipends and associated costs totalling £6.57M (2019: £6.70M) for incumbents, curates and other clergy. The total number of full-time equivalent clergy in post fell from 187 to 184.
A detailed breakdown of income and expenditure on the Common Fund and a breakdown of the support costs for a parish are set out on pages [2426] of the Trustees’ Report.
Contributions are made to the Archbishops’ Council to cover a proportion of its central costs relating to the activities of the various national boards and councils, as well as the General Synod, and to cover a proportion of the cost of national training for ministry (see note 6 to the financial statements).
## **INVESTMENT INCOME**
Market investments held at 31 December 2020 were £17.5M (2019: 16.3M) and investment properties were valued at £11.4M (2019: £12.2M) (see Note 10). Dividends receivable were £447K (2019: £562K) and net rental income was £379K (2019: £436K).
The investments held and their return during the year is set out in the table below which shows an overall yield on investments of 3.0% (2019: 3.7%) and total return of 10.7% (2019:13.8%).
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## **IMPACT OF COVID19**
The movement chart below shows the key impact on the Common Fund, largely as a result of Covid-19 pandemic.
Parish Offers combined with DBF Fees (remitted to the DBF in 2020) were down £276K when compared to Parish Offers in 2019, representing a fall of 3.1%, which was a remarkable achievement given that churches were shut for most of the year.
Investment Income was £149K down on the year, due to lower dividends from market investments and increased bad debt provisions for investment property rentals.
Total Covid related grants to the Common Fund totalled £366K. The Diocese received a £320K Sustainability Grant from the Archbishops’ Council and total furlough payments from HMRC were £100K of which £46K was for diocesan employees paid for by the Common Fund.
There was a £69K reduction in clergy costs in the year, largely due to the running of a higher vacancy rate. The impact of significant increase in ordinands led to an increase in costs of £157K (which was unrelated to Covid). Diocesan Costs to the Common Fund were reduced by £170K in year, largely due to savings in property expenditure.
The COVID-19 Emergency Relief Fund was launched in May 2020 and up to £250,000 in grants, based on certain qualifying criteria, and £500,000 in loans were made available to parishes. In addition, 9 parishes have to date contributed a
total of £36K. A total of 48 grants of £5,000 were made to 37 individual parishes. In addition, £58.7K loans were made to 5 parishes.
## **GRANTS RECEIVED**
The RDSBF gratefully acknowledges all grants received including those from Trust for London for £291K (2019: 244K); All Churches Trust for £141K (2019: £139K); and Colyer Fergusson for £20K (2019:£28K).
The RDSBF gratefully received the following grants from the Archbishops’ Council:
• £162K (2019: £75K) Strategic Development Funding towards Called to Grow.
• £97K (2019: £51K) Strategic Development Funding towards Chatham Town Centre.
• £329K (2019: £236K) block grant for ordinands’ training fees and expenses under the Resourcing Ministerial Education process.
• £320K (2019:£nil) Sustainability Grant.
## **SIGNIFICANT PROPERTY TRANSACTIONS**
During the year 7 (2019: 2) investment properties were sold for a total of £1.95M (2019: £397K), realising a total profit of £455K (2019: £172K). This included the Lower Beckenham Portfolio which was sold for £1.45M, realising a profit over the carrying value of £1.03M; an increase of 41%.
Also during the year five parsonages (2019: nil)
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were sold for total sale proceeds of £3.07M (2019: £nil), realising a surplus over book value of £1.76M.
There were 2 properties bought in 2020 at a total cost of £800k (purchase costs plus ingoing works) (2019: two properties for £752K), as follows:
• 118 Capstone Road, Luton - temporary accommodation for the Priest in Charge, Luton for £298k
• 90 Wigmore Road, South Gillingham – new parsonage for £502K
During the year, a grant was made to St Benedict’s Centre for the development of the Centre and this was capitalised at £1.0M and added to Fixed Assets.
## **BALANCE SHEET POSITION**
Net assets at the balance sheet date totalled £78.0M (2019: £75.2M).
This includes properties which are mostly in use for ministry; the book value of which amounted to £51.5M as at 31 December 2020 (2019:£51.5M).
The Trustees consider the market value of these properties to be considerably in excess of the book value, and this market value is realised as and when a property disposal takes place.
Much of the remainder of the assets shown in the balance sheet are held in restricted funds and cannot necessarily be used for the general purposes of the RDSBF.
The cash and short-term deposits position at 31 December 2020 stands at £9.0M (2019: £5.2M) and including market investments provides realisable liquid assets at 31 December 2020 of £26.6M (2019: £21.5M).
## **COMMON FUND**
The reserve balance on the Common Fund was £5.2M as at 31 December 2020 (2019: £6.8M), which slightly exceeds the requirement under the reserves policy of £5M (see Reserves Policy under Financial Strategy on page 31).
## **DESIGNATED FUNDS**
The balance of designated funds as at 31 December 2020 was £8.2M (2019: £7.3M). The increase was mainly due to DBF properties purchased as referred to above.
## **RESTRICTED AND ENDOWMENT FUNDS**
The RDSBF holds and administers a large number of restricted and endowment funds. As at 31 December 2020, restricted funds totalled £40.5M (2019: £39.0M) and endowment funds totalled £24.1M (2019: £22.1M).
## **FUNDS HELD AS CUSTODIAN TRUSTEE**
The RDSBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the RDSBF does not control them.
Further details of financial trust assets, whose market value amounted to £2.1M at 31 December 2019 (2019: £2.1M), are available from the RDSBF on request, and are summarised in Note 21. Where properties are held in trust, the deeds are identified as such and held in safe custody by the RDSBF.
_Places of Welcome, St Augustine, Gillingham_ 39
## **GOVERNANCE, STRUCTURE AND MANAGEMENT**
## **LEGAL FRAMEWORK**
The company’s principal object is to promote, assist and advance the work of the Church of England within the Diocese of Rochester by acting as the financial executive of the Rochester Diocesan Synod.
The RDSBF has the following statutory responsibilities:
• the management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Church Property Measure 2018;
• the repair of benefice houses as the Diocesan Parsonages Board under the Repair of Benefice Buildings Measure 1972; and
• the custody of permanent endowment and real property assets relating to trusts held by Incumbents and Churchwardens and by Parochial Church Councils as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956.
The strategic priorities of the company are established by the Diocesan Synod in communication with deanery synods, PCCs, and the Bishop of Rochester (in respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the Church nationally, including consultations on specific matters relating to the priorities for the forthcoming year.
## **PUBLIC BENEFIT**
The Trustees are aware of the Charity Commission’s guidance on public benefit, “The
Advancement of Religion for the Public Benefit”, and have regard to that guidance in their administration of the charity.
The RDSBF believes that this report provides evidence of the public benefit of the charity’s work in 2020.
As described more fully throughout the report, the RDSBF provides funds to support ministers of religion in the Diocese, and the maintenance of many buildings including parsonages and churches, many of which form an important part of the historic fabric and architectural heritage of the area.
The ministry of the parishes within the Diocese, actively involved in a wide range of community projects and supporting ministries, represents a substantial contribution to the wider public benefit.
The vast majority of churches are available to the public at large and none is restricted to members of the Church of England.
## **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 Province). Each province comprises dioceses of which there are 42. Each diocese in England is divided into parishes. Each parish is overseen by a parish priest (usually called a Vicar or Rector).
From ancient times through to today, they and their bishop are jointly responsible for the ‘cure of souls’ in their parish. Her Majesty the Queen, 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
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bishops sit in the House of Lords.
The Church of England is episcopally- led (there are over 100 bishops including diocesan bishops and assistant or 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.
## **THE CATHEDRAL**
The Cathedral is the mother church of the Diocese and legally constituted as a separate charity currently exempt from Charity Commission registration and supervision. For Rochester Cathedral copies of its trustees’ report and financial statements may be obtained from the Chapter Office, Garth House, Rochester ME1 1SX.
The information about the General Synod, the Church Commissioners, the Archbishops’ Council and Rochester Cathedral is included as background only. The financial transactions of these bodies do not form part of these financial statements.
## **NATIONAL CHURCH INSTITUTIONS**
The Archbishops’ Council, the Church Commissioners and the Church of England Pensions Board are sometimes referred to as the National Church Institutions.
The Archbishops’ Council was established in 1999 to co-ordinate, aid and further the mission of the Church of England. Its task is to give a sense of direction to the Church of England nationally and support the Church of England locally in parishes and dioceses. Its goals are: Contributing to the Common Good; Going for Growth (both numerically and spiritually) and Reimagining Ministry (both lay and ordained).
The Church Commissioners manage the historic assets of the Church of England, spending most of their income on pensions for clergy. The stipend, housing and office costs of the Bishop of Rochester are met by the Church Commissioners. In the case of the Bishop of Tonbridge, the stipend and office costs are met by the Church Commissioners, with the housing costs being met by the RDSBF.
The Church of England Pensions Board was established in 1926 as the Church of England’s pension 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 of England organisations.
The Pensions Board, which reports to the General Synod, is trustee of a number of pension funds and charitable funds. Whilst the Church of England has drawn together under the Pensions Board its central responsibilities for retirement welfare, the Pensions Board works in close cooperation both with the Archbishops’ Council and the Church Commissioners.
## **THE DIOCESE DIOCESAN SYNOD**
The statutory governing body of the Diocese is the Diocesan Synod which is elected with representation across the Diocese with broadly equal numbers of clergy and lay people meeting together with the two bishops. Elections occurred in 2018 for the 2018 to 2021 triennium.
Its role is to:
• consider matters affecting the Church of England in the Diocese;
• act as a forum for debate of Christian opinion on matters of religious or public interest;
• advise the Bishop of Rochester where requested;
• deal with matters referred by General Synod; and
• provide for the financing of the Diocese.
## **DEANERY SYNOD**
A deanery synod has two houses, laity and clergy, and its role is to:
• respond to requests from General Synod;
- give effect to decisions made by the Diocesan Synod;
• consider matters affecting the Church of England by drawing together the views of the parishes within the deanery;
•act as a channel of communication to express the views of parishes to Diocesan Synod and through it to General Synod;
- raise with Diocesan Synod such matters as it considers appropriate;
• elect members of the deanery to the Diocesan Synod and of the Diocese to General Synod.
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## **BISHOP’S COUNCIL**
The Bishop’s Council acts as:
- the Board of Directors and Trustees of the RDSBF
- the Diocesan Mission and Pastoral Committee
- the Diocesan Parsonages Board.
Elections occurred during 2018 for the 2019 to 2021 triennium.
## **PAROCHIAL CHURCH COUNCIL (PCC)**
The PCC is the elected governing body of an individual parish which broadly is the smallest pastoral area of the Church of England. Typically, each parish has one church.
The PCC is made up of the incumbent or priest-incharge as chair, the churchwardens and a number of elected and ex-officio members.
Each PCC is a charity, but those with an annual income below £100,000 are currently excepted from the need to register with the Charity Commission; all others are now required to register. Except where shown, the transactions of PCCs do not form part of these financial statements.
## **PASTORAL UNITS**
A benefice is a parish or group of parishes served by the incumbent or priest-in-charge who typically receives a stipend and the benefit of free occupation and use of a parsonage house from the Diocese for carrying out spiritual duties.
A deanery is a group of parishes over which an area dean has oversight, and an archdeaconry is a group of deaneries for which an archdeacon is responsible. There are seventeen deaneries and three archdeaconries in the Diocese.
The Diocese is then the principal pastoral, financial and administrative resource of the Church of England, encompassing the various archdeaconries under the spiritual leadership of the Bishop of Rochester.
## **THE DIOCESE OF ROCHESTER**
The Diocese of Rochester has existed in West Kent since 604. Since then the historic county of Kent has been shared between the two Dioceses of Canterbury and Rochester.
The Rochester part of Kent, however, changed significantly during the 19th and 20th centuries, largely as a result of the expansion of London.
**----- Start of picture text -----**
Prayer by the Tower at Capel United, Tudeley
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The Diocese serves a population of some 1.3million, which is expected to increase by 300,000 over the next 20+ years. We have 184 fulltime equivalent substantive stipendiary parochial posts, and 31 substantive self-supporting posts; at any time, we have around 20 stipendiary and 10 self-supporting curates in training.
Other licensed clergy and lay ministers serve as chaplains and in diocesan and Cathedral roles. This population is also served by 90 Church of England schools, with significant local involvement also in community schools.
The communities of the Diocese are characterised by increasing diversity of varying kinds. It covers some of the most affluent areas in England, and also some of the most deprived wards in the South-East. With the expansion of London and adjoining communities, it is increasingly urban and suburban, yet still retains places which see themselves as rural.
The Ebbsfleet Garden City development will have a new population of some 45,000 people – it is the largest single housing development in England.
Ethnic and religious diversity is a growing feature of our communities, and this is reflected in many of our congregations.
Our diocesan-level world Church partnerships are an important element of who we are. We have very active relationships with the Dioceses of Mpwapwa and Kondoa in Tanzania, the Diocese of Harare in Zimbabwe and with the Evangelical Lutheran Church of Estonia. These partnerships are expressed through parish and school links, as well as at diocesan level.
## **ORGANISATIONAL AND DECISION- MAKING STRUCTURE**
The RDSBF was incorporated on 14 June 1915 as a company limited by guarantee (No. 140656) and its governing documents are its Memorandum and Articles of Association. The RDSBF is a registered charity (No. 249339).
The company was formed to manage the financial affairs and hold the assets of the Diocese. Its principal activity is to promote, assist and advance the work of the Church of England within the Diocese of Rochester.
Governance and policy of the RDSBF is the responsibility of the Trustees, who are directors of the company and trustees for the purposes of charity law.
The members of Bishop’s Council are the Board of Directors (the Board) of the RDSBF, and the members of the Diocesan Synod are the members of the RDSBF. Additionally, there is the Finance Committee of the Bishop’s Council, acting for and assisting the Board in its more detailed work.
The Board has delegated responsibility for the day-to-day management of the company to the Diocesan Secretary who is supported by the Finance Director, the Property Director, the Communications Manager, and the HR and Governance Manager, and their respective staff. The Diocesan Secretary is also a member of the Bishop’s Leadership Team which meets regularly throughout the year.
The statutory governing body of the Diocese is the Diocesan Synod, which is an elected body with representation from all parts of the Diocese. Its legal basis is the Synodical Government Measure 1969. Membership consists of ex-officio members, including the Bishops and Archdeacons, clergy members elected by the houses of clergy in deanery synods; lay persons elected by the houses of laity in deanery synods, being up to 181 persons including 5 that may be co-opted by each of the House of Clergy and the House of Laity and 10 members who may be nominated by the Bishop of Rochester. The Diocesan Synod typically meets three times a year during February, June and October.
## **TRUSTEE RECRUITMENT, SELECTION AND INDUCTION**
The Board includes:
• Ex-officio Trustees
• Trustees who have been elected by Diocesan Synod to serve for three years, and
• Trustees appointed by the Bishop of Rochester for the same term.
Trustees are given induction at the outset of the triennium and at other times as appropriate. They are also informed, before seeking membership and at all other relevant times, of the role and function of the Board, including a Code of Conduct for Trustees and Committee Members.
Some senior staff have job titles incorporating the title ‘Director’ but they are not directors of the company for the purposes of company law.
## **REMUNERATION OF KEY MANAGEMENT PERSONNEL**
The Diocesan grading and salary structure is benchmarked against similar roles in the local charity sector as well as the wider Church of England context. All roles within the Diocese are graded according to the skills, experience and professional qualifications required for the role. Details of the aggregate remuneration of the key management personnel is shown in Note 7 of the accounts.
43
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.
Company law requires the Trustees (as Directors) to prepare financial statements for each financial year. Under company law the Trustees have elected to prepare the financial statements in accordance with 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).
Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the RDSBF and of the surplus or deficit of the RDSBF for that period. In preparing these financial statements the Trustees are required to:
• select suitable accounting policies and apply them consistently;
• observe methods and principles in the Charities SORP;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation.
The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the RDSBF and enable them to ensure that the financial statements comply with United
Mr Matthew Girt Diocesan Secretary
Kingdom Generally Accepted Accounting Practice. They are also responsible for safeguarding the assets of the RDSBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the RDSBF’s website.
Legislation in England/ Wales governing the preparation and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdictions.
## STATEMENT OF DISCLOSURE TO THE AUDITORS
The Trustees have taken all the necessary steps to ensure that they are aware, as trustees, of any relevant audit information and to establish that the auditors are aware of that information.
As far as the Trustees are aware, there is no relevant audit information of which the company’s auditors are unaware.
## APPOINTMENT OF AUDITORS
The appointment of Haysmacintyre LLP as auditors to the RDSBF will be proposed at the Annual General Meeting.
In approving this Trustees’ report, the Trustees are also approving the Strategic Report included on pages 1 to 43in their capacity as company directors.
BY ORDER OF THE TRUSTEES
Mr Nigel Pope Chair of Rochester Diocesan Society and Board of Finance
28 May 2021
44
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROCHESTER DIOCESAN SOCIETY AND BOARD OF FINANCE**
## OPINION
We have audited the financial statements of the Rochester Diocesan Society & Board of Finance for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
## BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## OTHER INFORMATION
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
45
## OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report included within the Annual Report have been prepared in accordance with applicable legal requirements.
## MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the charitable company; or
• the charitable company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of trustees’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
## RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS
As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding vulnerable beneficiaries, health and safety, and employment (including taxation), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and Church of England Measures.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to
46
prevent and detect irregularities;
- Identifying and testing journals, in particular journal postings by unusual users or with unusual descriptions;
- Challenging assumptions and judgements made by management in their critical accounting estimates;
- Testing transfers between funds; and
- Cut-off testing in respect of revenue.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.
## USE OF OUR REPORT
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
A Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors
10 Queen Street Place London EC4R 1AG
28 May 2021
**----- Start of picture text -----**
Food table at St Peter and St Paul, Aylesford
**----- End of picture text -----**
47
## **STATEMENT OF FINANCIAL ACTIVITIES**
_For the year ended 31 December 2020_
|||||||
|---|---|---|---|---|---|
|Note
**Income**
Donations:
- Parish Offers
- Other
2
Investment income
3
Charitable activities
4
**Total income**
**Expenditure**
Generating income
5
Charitable activities
6
**Total Expenditure**
**Operating (Deficit)/Surplus:**
Profit/(losses) on sale of property
Gains/(losses) on investments
10
**Net Income before revaluation of fixed**
**assets and pension scheme liabilities and**
**transfers between funds**
**Reserve Movements:**
Net Income
Gains on revaluation of fixed assets
Revaluation of pension scheme liabilities
22
Transfers between funds
19
**Net movement in funds**
Reserve balances at 1st January 2020
Reserve balances at 31st December 2020|**Common**
**Designated**
£'000
£'000
8,395
-
526
-
1,299
-
396
-
10,616
-
(430)
-
(11,100)
-
(11,530)
-
**(914)**
**-**
(52)
788
615
30
**(351)**
**818**
(351)
818
-
-
34
-
(1,315)
112
**(1,632)**
**930**
6,812
7,304
**5,180**
**8,234**
note 16
**Unrestricted**|**Restricted**
£'000
-
1,104
51
-
1,155
(2)
(1,395)
(1,397)
**(242)**
1,021
(8)
**771**
771
-
-
760
**1,531**
39,005
**40,536**
note 17|**Endowment**
£'000
-
21
3
-
24
-
(12)
(12)
**12**
-
1,509
**1,521**
1,521
-
-
443
**1,964**
22,120
**24,084**
note 18|**Total**
**2020**
£'000
8,395
1,651
1,353
396
11,795
(432)
(12,507)
(12,939)
**(1,144)**
1,757
2,146
**2,759**
2,759
-
34
-
**2,793**
75,241
**78,034**|**_Total_**
**_2019_**
_£'000_
_9,057_
_1,259_
_1,506_
_12_|
||||||_11,834_|
||||||_(495)_
_(13,036)_|
||||||_(13,531)_|
|||||||
||||||**_(1,697)_**|
||||||_-_
_2,873_|
||||||**_1,176_**|
||||||_1,176_
_-_
_1,930_
_-_|
||||||**_3,106_**|
||||||_72,135_|
||||||**_75,241_**|
|||||||
All income and expenditure relates to continuing activities.
The Companies Act 2006 requires a separate income and expenditure account to be prepared to exclude transactions relating to Endowment Funds. No such income and expenditure account has been included in these statements as the relevant exclusions from this Statement of Financial Activities are all clearly shown above. These are: Endowment Fund income – £24k (2019 : £5k); Endowment Fund expenditure - £12k (2019 - £148k); Profit on Sale of Property - £0k (2019 : £0k); and Endowment Fund gains and losses on investments - £1,509k (2019 : £1,672k).
48
## **BALANCE SHEET**
_For the year ended 31 December 2020_
||**Rochester Diocesan Society and**|**Board of Finance(The)**|**Board of Finance(The)**||
|---|---|---|---|---|
||**Company registration number**||**140656**||
|||**Total**|**_Total_**||
|||**2020**|**_2019_**||
||Note|**£'000**|**_£'000_**||
|**FIXED ASSETS**|||||
|Tangible assets|9|51,461|_51,529_||
|Investments|10|28,914|_28,497_||
|||80,375|_80,026_||
|**CURRENT ASSETS**|||||
|Debtors|11|1,020|_1,059_||
|Short term deposits||3,404|_2,890_||
|Cash at bank||5,651|_2,332_||
|||10,075|_6,281_||
|**CREDITORS: Amounts falling due within one year**|||||
|Bank overdraft||6|_58_||
|Creditors|12|11,003|_9,534_||
|||11,009|_9,592_||
|**NET CURRENT LIABILITIES**||(934)|_(3,311)_||
|**TOTAL ASSETS LESS CURRENT LIABILITIES**||79,441|_76,715_||
|**CREDITORS: Amounts falling due after more than one year**|12||||
|Pensions liability||612|_1,179_||
|Other creditors||795|_295_||
|**NET ASSETS**||78,034|_75,241_||
|**Unrestricted**||13,414|_14,116_||
|**Restricted**||40,536|_39,005_||
|**Endowment**||24,084|_22,120_||
|**FUNDS**|20|78,034|_75,241_||
The Statement of Cash Flows and the Notes form part of these financial statements.
The financial statements were approved by the Board of Trustees and authorised for issue on 28 May 2021 and signed on behalf of the Board by:
Nigel Pope
Chair of Rochester Diocesan Society and Board of Finance
49
## **STATEMENT OF CASH FLOWS**
_For the year ended 31 December 2020_
|**Net cash outflow from operating activities**
**Cash flows from investing activities**
Investment income
Proceeds from the sale of:
Tangible fixed assets
Fixed asset investments
Purchase of:
Tangible fixed assets
Fixed asset investments
**Net cash provided by investing activities**
**Cash flows from financing activities**
Proceeds from long term debt
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at 1 January**
**Cash and cash equivalents at 31 December**
**Reconciliation of net movement in funds to net cash outflow from**
**operating activities**
**Net movement in funds for the year ended 31 December**
**Adjustments for:**
Investment income
Depreciation
Gain on disposal of fixed assets
Gain on sale of investments
Unrealised loss on investments
Revaluation of fixed assets
Revaluation of investment property
Increase in creditors: falling due within one year
(Increase)/Decrease in debtors
Decrease in creditors: falling due after one year
**Net cash used in operating activities**
**Analysis of movements in net cash**
Cash on deposit
Cash at bank
Less overdraft
**Total cash and cash equivalents**
CCLA Loan falling due after one year
**Total**|**£'000**
**£'000**
**_£'000_**
**_£'000_**
(1,511)
_(4,094)_
1,353
_1,265_
3,023
_-_
18,391
_1,498_
(1,209)
_(1,720)_
(16,662)
_(1,101)_
4,896
_(58)_
500
_-_
500
_-_
3,885
_(4,152)_
5,164
_9,316_
9,049
_5,164_
**2020**
**_2019_**
**£'000**
**_£'000_**
**2,793**
**_3,106_**
(1,353)
_(1,265)_
12
_12_
(1,757)
_-_
(652)
_(423)_
(879)
_(2,039)_
-
_-_
(616)
_(411)_
1,469
_(991)_
39
_297_
(567)
_(2,380)_
(1,511)
_(4,094)_
**2019**
**Cash Flows**
**New**
**Borrowing**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
2,890
514
-
3,404
2,332
3,319
-
5,651
(58)
52
-
(6)
**2020**
**_2019_**|**_£'000_**
_(4,094)_
_(58)_
_-_
**_19_**|
|---|---|---|
|||_(4,152)_
_9,316_|
|||_5,164_|
|||**_2019_**
**_£'000_**
**_3,106_**
_(1,265)_
_12_
_-_
_(423)_
_(2,039)_
_-_
_(411)_
_(991)_
_297_
_(2,380)_|
|||_(4,094)_|
||5,164
3,885
-
9,049
_-_
-
(500)
(500)||
||5,164
3,885
(500)
8,549||
||||
50
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **1. ACCOUNTING POLICIES**
**a) Accounting convention and basis of preparation** The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included at their fair value, 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).
## **b) Going concern**
The Trustees consider that there are no material uncertainties regarding the RDSBF’s ability to continue as a going concern. The RDSBF aims to achieve a financially sustainable position. The RDSBF has net assets of £78.0m (2019 : £75.2m) and the Trustees believe that there is sufficient liquidity in these assets to ensure that the charitable company can meet its obligations for the next 12 months and beyond.
## **c) Income**
All income is included in the Statement of Financial Activities (SOFA) when the RDSBF is legally entitled to it, when ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.
i) Parish Offer is recognised as income of the year in respect of which it is receivable.
ii) Rent receivable is recognised as income in the period with respect to which it relates. iii) Interest and dividends are recognised as income when receivable.
iv) Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year.
v) Parochial fees that relate to the RDSBF are recognised as diocesan income in the year in respect of which they are receivable.
vi) Donations other than grants are recognised when receivable or in the case of material legacies, when the conditions for recognition under the charities SORP have been met.
## **d) Expenditure**
Expenditure is included on an accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category.
i) Cost of raising funds - relate to costs incurred in the temporary renting out of parsonages and investment management costs of glebe and any other investment properties.
ii) Charitable expenditure - analysed according to Diocese’s main areas of activity. iii) Grants payable - charged in the year when the grant is approved and conveyed to the recipient except those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the RDSBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
iv) Support costs - consist of central management, administration and governance costs. The amount of support costs spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff usage basis. v) Pension contributions – pension schemes in which the RDSBF participates are described in Note 22. Pension costs are charged as resources expended and represent the RDSBF’s contributions payable in respect of the accounting period in accordance with FRS102. Deficit funding for the pension schemes to which RDSBF participates and which are unpaid at this yearend, is accrued at current value in creditors, distinguished between contributions due within one year and after more than one year.
51
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
vi) Short term employee benefits - short term benefits including holiday pay are recognised as and expense in the period in which the service is received.
vii) Employee termination benefits - termination benefits are accounted for on an accrual basis and in line with FRS 102.
viii) Tangible fixed assets and depreciation - tangible fixed assets are shown in note 9 to the financial statements.
## **Freehold properties**
The RDSBF measures all freehold property assets at historical cost as required by FRS102.
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 the expected residual value is not materially less than the carrying value. The RDSBF has a policy of regular structural inspection, repair and maintenance, which in the case of parsonage properties is in accordance with the Repair of Benefice 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 the carrying value. Where the Trustees believe that the value of an asset might have been impaired, an annual impairment review is carried out in accordance with the requirements of FRS102, to ensure that the carrying value is not more than the recoverable amount.
## **Properties subject to value linked loans**
Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are stated using the value of the related loan at the balance sheet date. Each year end the respective property and loan are carried at their historical value.
## **Investment properties**
Glebe properties which are held for investment purposes have been included at their market value.
## **Parsonage Houses**
The RDSBF has followed the requirements of FRS102 in its accounting treatment of benefice houses. FRS102 requires the accounting treatment to follow the substance of arrangements rather than strict legal form. The RDSBF is 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 relevant incumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as restricted assets and carry them at their historical cost.
ix) Other tangible fixed assets - 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. All capital expenditure on computer and office equipment over £1k is capitalised and depreciated over 3 years. x) Project Costs - Expenditure in relation to projects is capitalised where there is likelihood that the project will become an income-bearing asset.
## **e) Other accounting policies**
i) Fixed asset investments - included in the balance sheet at market value (ex dividend) and the gain or loss taken to the Statement of Financial Activities.
ii) Realised gains/(losses) on sale of investments - represent proceeds of sale less the appropriate proportion of the opening carrying value and are shown in the Statement of Financial Activities.
iii) Leases – the RDSBF has entered into operating lease agreements the rental for which is charged in full as expenditure in the year to which it relates.
iv) Financial instruments - the RDSBF only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at
52
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
transaction value and subsequently carried at either amortised cost or fair value. v) Debtors - trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. At the end of each reporting period debtors are assessed for evidence of impairment. If an asset is impaired, an impairment loss is recognised in the Statement of Financial Activities.
vi) Cash - cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity.
vii) Creditors - basic financial liabilities, including trade and other payables and bank loans, are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at transaction price.
## **f) Fund balances**
Fund balances are split between unrestricted (common and designated), restricted and endowment funds.
i) Unrestricted funds are the RDSBF’s corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the RDSBF.
There are two types of unrestricted funds:
• Common fund which the RDSBF intends to use for the general purposes of the RDSBF.
• Designated funds set aside out of unrestricted funds by the RDSBF for a purpose specified by the Trustees.
ii) Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure.
iii) Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.
iv) “Special Trusts” (as defined by the Charities Act 2011) and any other trusts where the company acts as trustee and controls the management and use of the funds, are included in the company’s own financial statements. Trusts where the RDSBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements.
## **g) Judgments and Estimates**
In the application of the accounting policies, the Trustees are required to make judgments, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.
i) Significant judgments - valuation of liabilities arising from the charity’s obligation to meet deficit reduction payments for its multi-employer defined benefit pension schemes : these liabilities are revalued at each year-end using discount rates which are reassessed annually. ii) Residual values of freehold properties - the Trustees consider that residual value of freehold properties is sufficiently high that depreciation would not be material.
iii) Sources of estimation uncertainty - in the view of the Trustees there are no sources of estimation uncertainty affecting assets or liabilities at the balance sheet date that are likely to result in a material adjustment to their carrying amounts in the next financial year.
53
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **2. INCOME FROM DONATIONS**
|(Donations, Legacies and similar income)
Trust for London (formerly City Parochial Foundation)
Archbishops' Council - Sustainability Grant
HMRC Furlough Grant
Covid 19 Emergency Relief Fund
All Churches Trust - annual distribution
Partnership Fund appeals, confirmations, licensing & induction collections
Poverty & Hope Appeal
Guaranteed annuities
RME Ordinands Grants
Colyer Fergusson re Ebbsfleet Youth Worker
Swanscombe and Greenhithe Town Council re Ebbsfleet Youth Worker
Church Commissioners re Chatham Town Centre
Readers' Fees
Strategic Development Funding - Called to Grow
David Godwin Legacy
Other sundry items|**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
_-_
_-_
291
_-_
291
320
-
-
-
320
46
-
54
-
100
-
-
27
-
27
141
_-_
-
_-_
141
_-_
_-_
90
_-_
90
_-_
_-_
28
_-_
28
15
_-_
-
_-_
15
_-_
_-_
329
_-_
329
_-_
_-_
20
_-_
20
_-_
_-_
5
_-_
5
_-_
_-_
97
_-_
97
2
_-_
-
_-_
2
_-_
_-_
162
_-_
162
_-_
_-_
-
21
21
2
_-_
1
_-_
3
**Unrestricted**|
|---|---|
||526
-
1,104
21
1,651|
|(Donations, Legacies and similar income)
Trust for London (formerly City Parochial Foundation)
All Churches Trust - annual distribution
Henry Smith Charity
Partnership Fund appeals, confirmations, licensing & induction collections
Poverty & Hope Appeal
Diocesan Board of Finance element of Parochial Fees
Guaranteed annuities
RME Ordinands Grants
Colyer Fergusson re Ebbsfleet Youth Worker
Swanscombe and Greenhithe Town Council re Ebbsfleet Youth Worker
Colyer Fergusson re Children and Young People Fund
Church Commissioners re Chatham Town Centre
Historic England re Chatham Town Centre
Listed Places of Worship Grant re Chatham
Diocesan Community Engagement Advisor
Readers' Fees
Bishop's Fund for Mission re Together Magazine
Strategic Development Funding - Called to Grow
Past Cases Review
Margaret Louise Swanson Legacy
Other sundry items|**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
_-_
_-_
244
_-_
244
139
_-_
-
_-_
139
_-_
_-_
39
_-_
39
_-_
_-_
168
_-_
168
_-_
_-_
34
_-_
34
9
_-_
-
_-_
9
15
_-_
-
_-_
15
_-_
_-_
236
_-_
236
_-_
_-_
28
_-_
28
_-_
_-_
5
_-_
5
_-_
_-_
50
_-_
50
_-_
_-_
51
_-_
51
_-_
_-_
81
_-_
81
_-_
_-_
33
_-_
33
_-_
_-_
5
_-_
5
1
_-_
-
_-_
1
_-_
_-_
4
_-_
4
_-_
_-_
75
_-_
75
_-_
_-_
40
_-_
40
1
_-_
-
_-_
1
1
_-_
-
_-_
1
**Unrestricted**|
|---|---|
||166
-
1,093
-
1,259|
54
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **3. INVESTMENT INCOME**
|Rents receivable
Dividends receivable
Interest on deposits receivable||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
852
-
24
-
876
447
-
27
-
474
-
-
-
3
3
**Unrestricted**|
|---|---|---|
|||1,299
-
51
3
1,353|
||||
|Rents receivable
Dividends receivable
Interest on deposits receivable||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
886
-
27
-
913
536
-
26
-
562
26
-
-
5
31
1,448
-
53
5
1,506
**Unrestricted**|
## **4. INCOME FROM CHARITABLE ACTIVITIES**
|Diocesan Board of Finance element of Parochial Fees
Professional fees||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
386
-
-
-
386
10
-
-
-
10
**Unrestricted**|
|---|---|---|
|||396
-
-
-
396|
||||
|Professional fees||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
12
-
-
-
12
**Unrestricted**|
|||12
-
-
-
12|
## **5. EXPENDITURE ON GENERATING INCOME**
|Glebe management costs
Non glebe commissions
Rental property maintenance
Cost of income generation||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
116
_-_
-
_-_
116
22
_-_
-
_-_
22
157
_-_
-
_-_
157
135
_-_
2
-
137
430
-
2
-
432
**Unrestricted**|
|---|---|---|
||||
||||
|Glebe management costs
Non glebe commissions
Rental property maintenance
Cost of income generation||**Restricted**
**Endowment**
**Total**
**Common**
**Designated**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
89
_-_
-
_-_
89
23
_-_
-
_-_
23
241
_-_
-
_-_
241
131
_-_
10
1
142
**Unrestricted**|
|||484
-
10
1
495|
55
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **6. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS**
|**Bringing people to faith in Christ**
Mission & Community Engagement (50%)
Formation & Ministry (50%)
Youth & Children
Allocated support costs
**A priestly presence in every community**
Stipend costs
Apprenticeship levy
Actuarial gains/losses on clergy pension scheme
Glebe reinstatement works
Grants
Parsonage maintenance & improvements
Ministry houses - housing costs
Curate and Associate Clergy Costs
National Church - training for ministry
Formation & Ministry (50%)
Stewardship, Legal, Accounts Advisors & other
Diocesan appointments
Allocated support costs
**Engagement with the community**
Grants
Mission & Community Engagement (50%)
Communications
Faculty & inspection fees
Diocesan committees
National Church grant/allocation
Partnership Dioceses & Church Urban Fund
Ebbsfleet Youth Worker
Dementia Project
Chatham Town Centre
Past Cases Review
Growth Enablers
Called to Grow - SDF Funding
Allocated support costs|**Restricted**
**Endowment**
**Total**
**General**
**Designated**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
87
-
-
-
87
174
-
-
-
174
86
-
-
-
86
226
-
3
-
229
**Unrestricted**|
|---|---|
||573
-
3
-
576|
||6,562
-
-
-
6,562
22
-
-
-
22
11
-
-
-
11
-
-
-
12
12
293
-
285
-
578
604
-
-
-
604
21
-
9
-
30
171
-
-
-
171
500
-
-
-
500
174
-
-
-
174
80
-
-
-
80
284
-
-
-
284
751
-
9
-
760|
||9,473
-
303
12
9,788|
||4
-
724
-
728
87
-
-
-
87
8
-
-
-
8
64
-
-
-
64
3
-
-
-
3
362
-
1
-
363
-
-
7
-
7
-
-
34
-
34
-
-
6
-
6
-
-
16
-
16
-
-
29
-
29
-
-
135
-
135
-
-
132
-
132
526
-
5
-
531|
||1,054
-
1,089
-
2,143|
|||
||11,100
-
1,395
12
12,507|
Support costs comprise administration and governance costs which includes the audit fee of £22k (2019 : £20k).
Support costs include interest payable of £30k (2019 : £Nil) on deferred stipend payments to the Church Commissioners, a £500k loan with CCLA and net interest payable on parish Church Repair Fund and Diocesan Loan Fund balances.
56
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **6. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS**
|**Bringing people to faith in Christ**
Mission & Community Engagement (50%)
Formation & Ministry (50%)
Youth & Children
Allocated support costs
**A priestly presence in every community**
Stipend costs
Apprenticeship levy
Actuarial gains/losses on clergy pension scheme
Glebe reinstatement works
Grants
Parsonage maintenance & improvements
Clergy conference
Ministry houses - housing costs
Curate and Associate Clergy Costs
National Church - training for ministry
Formation & Ministry (50%)
Stewardship, Legal, Accounts Advisors & other
Diocesan appointments
Allocated support costs
**Engagement with the community**
Grants
Mission & Community Engagement (50%)
Communications
Faculty & inspection fees
Diocesan committees
National Church grant/allocation
Partnership Dioceses & Church Urban Fund
Ebbsfleet Youth Worker
Diocesan Magazine
Dementia Project
Chatham Town Centre
Past Cases Review
Growth Enablers
Called to Grow - SDF Funding
Allocated support costs|**Restricted**
**Endowment**
**Total**
**General**
**Designated**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
82
-
-
-
82
176
-
-
-
176
81
-
-
-
81
205
-
14
1
220
**Unrestricted**|
|---|---|
||544
-
14
1
559|
||6,119
-
500
-
6,619
23
-
-
-
23
76
-
-
-
76
-
-
-
132
132
305
-
233
1
539
593
-
100
-
693
33
-
-
-
33
17
-
148
-
165
147
-
-
-
147
493
-
-
-
493
176
-
-
-
176
76
-
-
-
76
423
-
-
-
423
704
-
49
8
761|
||9,185
-
1,030
141
10,356|
||4
-
873
-
877
82
-
-
-
82
23
-
-
-
23
89
-
-
-
89
9
-
-
-
9
373
-
2
-
375
-
-
10
-
10
-
-
30
-
30
-
-
3
-
3
-
-
34
-
34
-
-
49
-
49
-
-
25
-
25
-
-
25
-
25
-
-
25
-
25
430
-
30
5
465|
||1,010
-
1,106
5
2,121|
|||
||10,739
-
2,150
147
13,036|
57
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **7. STAFF COSTS**
|||**2020**|**_2019_**||
|---|---|---|---|---|
|||**£'000**|**_£'000_**||
|Ordained Diocesan Officials stipends||290|_289_||
|Other Lay Diocesan Personnel salaries||1,411|_1,152_||
|National Insurance||164|_140_||
|Life Insurance Policy||21|_19_||
|Pension Costs|- Lay Diocesan Personnel|106|_263_||
||- Diocesan Clergy|108|_89_||
|||2,100|_1,952_||
|The average number of persons employed by the RDSBF during the year:|||||
|||**2020**|**_2019_**||
|||**Number**|**_Number_**||
|**Common Fund**|||||
|Administration and financial management||26|_26_||
|Training||10|_10_||
|Mission and Community Engagement||8|_7_||
|Diocesan Appointments||5|_6_||
|||49|_49_||
|Called to Grow (funded by Strategic Development Fund)||6|_1_||
|Growth Enablers (funded by Diocesan Pastoral Account)||3|_-_||
|||58|_50_||
The average number of persons employed by the RDSBF during the year based on full-time equivalents:
|**Common Fund**
Administration and financial management
Training
Mission and Community Engagement
Diocesan Appointments
Called to Grow (funded by Strategic Development Fund)
Growth Enablers (funded by Diocesan Pastoral Account)|**2020**
**_2019_**
**Number**
**_Number_**
22
_22_
7
_7_
6
_6_
5
_5_|
|---|---|
||40
_40_
4
_-_
3
_-_|
||47
_40_|
The numbers of staff whose emoluments (including benefits in kind but excluding pension contributions) amounted to more than £60,000 were as follows:-
|
£60,000|
were as follows:-|||
|---|---|---|---|
|||**2020**|**_2019_**|
|||**Number**|**_Number_**|
|£60,000|- £70,000|-|_-_|
|£70,000|- £80,000|2|_2_|
|£80,000|- £90,000|1|_1_|
58
**NOTES FOR THE FINANCIAL STATEMENTS** _For the year ended 31 December 2020_
## **7. STAFF COSTS (CONTINUED)**
## **Remuneration of Key Management Staff**
Key management personnel are deemed to be those having authority and responsibility, delegated to them by the Trustees for planning, directing and controlling the activities of the Diocese. During 2020, they were:
Diocesan Secretary Mr Matthew Girt Finance Director The Rev Richard Williams Director of Formation and Ministry The Rev Canon Chris Dench Diocesan Surveyor Mr Mark Trevett
Remuneration, pensions, national insurance contributions and expenses for these 4 employees amounted to £340,580 (2019 : £387,443).
## **Trustees’ Emoluments**
No trustee received any remuneration for services as a Trustee. Five Trustees received travelling and out of pocket expenses (2019 : 6), totalling £11,512 (2019 : £23,652) in respect of General Synod duties, duties as archdeacon or area/rural dean and other duties as Trustees.
The table below gives details of the Trustees who were in receipt of a stipend and/or housing provided by the RDSBF (or the Church Commissioners where shown *) during the year:
|The Bishop of Rochester – The Right Revered James Langstaf|Stipend
Yes*|Housing
Yes*|
|---|---|---|
|The Bishop of Tonbridge – The Right Reverend Simon Burton-Jones|Yes*|Yes|
|The Dean of Rochester Cathedral|Yes*|Yes*|
|The Archdeacon of Bromley and Bexley – The Venerable Dr Paul Wright|Yes|Yes|
|The Archdeacon of Tonbridge – The Venerable Julie Conalty|Yes|Yes|
|The Archdeacon of Rochester – The Venerable Andrew Wooding-Jones|Yes|Yes|
|The Chair of the House of Clergy – The Reverend Canon Alyson Davie|Yes|Yes|
|The Reverend Canon Mark Barker|Yes|Yes|
|The Reverend Dr Julie Bowen|Yes|Yes|
|The Reverend Martyn Saunders|Yes|Yes|
The RDSBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy of the Diocese, other than bishops and cathedral staff. The RDSBF is also responsible for the provision of housing for stipendiary clergy in the Diocese including the suffragan bishop but excluding the diocesan bishop and cathedral staff.
|**2020**
**_2019_**
**£'000**
**_£'000_**
**Parish Stipends, National Insurance & Pension Costs**
Parish Stipends
4,922
_4,981_
National Insurance
393
_397_
Pension Costs
1,259
_1,317_
6,574
_6,695_
Number of parish clergy in post as at 31 December (Full-time equivalent)
184
_187_|**Parish Stipends, National Insurance & Pension Costs**
Parish Stipends
National Insurance
Pension Costs
Number of parish clergy in post as at 31 December (Full-time equivalent)|**2020**
**_2019_**
**£'000**
**_£'000_**
4,922
_4,981_
393
_397_
1,259
_1,317_|
|---|---|---|
|||6,574
_6,695_|
|||184
_187_|
59
## **NOTES FOR THE FINANCIAL STATEMENTS** _For the year ended 31 December 2020_
## **8. ANALYSIS OF GRANTS MADE**
|**No.**
**Individuals**
**Institutions**
**Source**
**£'000**
**£'000**
**From unrestricted funds:**
Ordinands in training
18
149
-
Common Fund
Clergy training
23
9
-
Common Fund
Clergy removal grants
25
43
-
Common Fund
Clergy resettlement grants
19
36
-
Common Fund
Clergy first appointment grants
28
50
-
Common Fund
Kent Workplace Mission
1
-
4
Common Fund
Archdeacons' discretionary grants
29
6
-
Common Fund
**From restricted funds:**
Ministry Division Ordinand Block Grants
49
41
244
Ministry Division Fund
Parochial Church Councils
31
-
155
Covid 19 Emergency Relief Fund
Overseas Partnership: Harare
6
-
12
Companion Diocese Fund
Overseas Partnership: Tanzania
21
3
83
Companion Diocese Fund
Beckenham St Michael
6
-
124
Pastoral Account
Bishop of Rochester Discretionary Fund
2
-
21
Pastoral Account
Lamorbey Holy Redeemer PCC
3
-
47
Pastoral Account
South Gillingham PCC
1
-
3
Pastoral Account
St Benedicts Centre
1
-
105
Pastoral Account
Strood St Francis PCC
1
-
6
Pastoral Account
Christian Aid
1
-
12
Poverty & Hope Appeal
Church Mission Society
1
-
6
Poverty & Hope Appeal
Commonwork Land Trust
1
-
6
Poverty & Hope Appeal
United Society (formerly USPG)
1
-
6
Poverty & Hope Appeal
Erith & Thamesmead CAP Debt Centre
1
-
2
Local Church Urban Fund
Parochial Church Councils
12
-
62
Trust for London
Other Organisations
6
-
16
Trust for London
Clergy grants
9
19
-
Trust for London
Parochial Church Councils
3
-
19
Church Extension Fund
Parochial Church Councils
2
-
1
Cobham and Gravesend Churches
Parochial Church Councils
9
-
16
£500k CYP Fund|**2020**
**£'000**
149
9
43
36
50
4
6
285
155
12
86
124
21
47
3
105
6
12
6
6
6
2
62
16
19
19
1
16|
|---|---|
||1,306|
|**No.**
**Individuals**
**Institutions**
**Source**
**£'000**
**£'000**
**From unrestricted funds:**
Ordinands in training
14
119
-
Common Fund
Clergy training
55
27
-
Common Fund
Clergy removal grants
28
50
-
Common Fund
Clergy resettlement grants
24
52
-
Common Fund
Clergy first appointment grants
23
52
-
Common Fund
Kent Workplace Mission
1
-
4
Common Fund
Archdeacons' discretionary grants
30
6
-
Common Fund
**From restricted funds:**
Ministry Division Ordinand Block Grants
37
36
197
Ministry Division Fund
Overseas Partnership: Harare
5
1
20
Companion Diocese Fund
Overseas Partnership: Tanzania
31
4
131
Companion Diocese Fund
Beckenham St Michael
1
-
10
Pastoral Account
Bishop of Rochester Discretionary Fund
1
-
20
Pastoral Account
Lamorbey Holy Redeemer PCC
3
-
417
Pastoral Account
Gillingham St Augustine PCC
1
-
5
Pastoral Account
Christian Aid
1
-
12
Poverty & Hope Appeal
Church Mission Society
1
-
6
Poverty & Hope Appeal
Commonwork Land Trust
1
-
6
Poverty & Hope Appeal
United Society (formerly USPG)
1
-
6
Poverty & Hope Appeal
Gravesend St George PCC
1
-
2
Local Church Urban Fund
Erith & Thamesmead CAP Debt Centre
1
-
2
Local Church Urban Fund
Parochial Church Councils
25
-
130
Trust for London
Bishop of Rochester Discretionary Fund
1
-
10
Trust for London
St Mary's Church House (under £1,000)
3
-
1
Trust for London
Clergy grants
29
27
-
Trust for London
Other grants under £1,000
7
-
3
Trust for London
Retired Clergy Grant
1
1
-
Pension and Retired Clergy
Parochial Church Councils
21
-
59
£500k CYP Fund|**2019**
**£'000**
119
27
50
52
52
4
6
233
21
135
10
20
417
5
12
6
6
6
2
2
130
10
1
27
3
1
59|
|---|---|
||1,416|
60
**NOTES FOR THE FINANCIAL STATEMENTS** _For the year ended 31 December 2020_
## **9. TANGIBLE FIXED ASSETS**
|**Cost or valuation**
Balance 1 January 2020
Additions
Disposals
Revaluation
Transfer
Balance 31 December 2020
**Depreciation**
Balance 1 January 2020
Charge for the year
Disposals
Transfer
Balance 31 December 2020
**Net book values**
At 31 December 2020
_At 31 December 2019_|**Assets in**
**Computer**
**course of**
**& Phone**
**Land**
**Buildings**
**Land**
**Buildings**
**Land**
**Buildings**
**Land**
**Buildings construction**
**Equipment**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
5,101
7,820
123
174
19,778
20,281
495
527
2,983
171
57,453
53
128
-
-
-
211
-
-
817
-
1,209
-
-
-
-
(598)
(528)
(115)
(155)
-
-
(1,396)
-
-
-
-
-
-
-
-
-
-
-
536
443
-
-
141
245
171
296
(1,832)
-
-
**Board**
**Equity Sharing**
**Benefice**
**Assets Held**
**Property**
**Property**
**Property**
**For Sale**|
|---|---|
||5,690
8,391
123
174
19,321
20,209
551
668
1,968
171
57,266|
||-
1,189
-
52
-
4,368
-
157
-
158
5,924
-
-
-
-
-
-
-
-
-
12
12
-
-
-
-
-
(84)
-
(47)
-
-
(131)
-
(40)
-
-
-
(42)
-
82
-
-
-|
||-
1,149
-
52
-
4,242
-
192
-
170
5,805|
||5,690
7,242
123
122
19,321
15,967
551
476
1,968
1
51,461|
||_5,101_
_6,631_
_123_
_122_
_19,778_
_15,913_
_495_
_370_
_2,983_
_13_
_51,529_|
|||
Following the introduction of Financial Reporting Standard 15 “Tangible Fixed Assets”, all fixed asset land and buildings, excluding investment properties, were crystallised at their carrying value on 1 January 2000. The land proportion for each property was estimated and depreciation at 2% was applied to the remaining portion in respect of the building content. The land content was estimated to be between 40% and 51% of the carrying value as at 1 January 2000.
Depreciation is no longer provided on buildings as any provision 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.
## (a) Freehold Land and Buildings
- The land and buildings are shown divided between Board Property, purchased from the Board’s own funds, and Equity Sharing Property, which is purchased partially or wholly by a loan from the Church Commissioners. Although title to properties under the Equity Sharing Scheme rests with the Board, any profit or loss on sale is apportioned between the Board and Church Commissioners in proportion to the original funding.
- (b) Equity Sharing Properties
- Equity sharing properties are part owned by the Board and are included as fixed assets land and buildings. In each case there is a loan with the interest being paid by the parish for which the property is provided. On disposal, the Board receives only its share of the equity.
- (c) Benefice Property
- Properties not owned by the Board but from which the Board derives the benefit and incurs the obligation of ownership are included in the accounts at historical cost or market value on 1st January 2000. The proceeds of any sales are available to the Board.
61
**NOTES FOR THE FINANCIAL STATEMENTS** _For the year ended 31 December 2020_
## **10. FIXED ASSET INVESTMENTS**
||||||
|---|---|---|---|---|
|**Investments**
Sarasin & Partners
Eden Tree Investment Management
Mercer Global Investment Management
**Investment Properties**
At 1 January 2020
Additions
Disposals
Realised gains
Sale proceeds
Net gains on investments
At 31 December 2020|**Cost**
**£'000**
-
-
16,623
(17,739)
(652)|**Market Value**
**£'000**
-
-
17,502
11,412
**2020**|**_Cost_**
**_£'000_**
_9,105_
_3,407_
_-_
_(1,075)_
_(423)_|**_Market Value_**
**_£'000_**
_11,767_
_4,561_
_-_
_12,169_
**_2019_**|
|||28,914||_28,497_|
|||**£'000**
28,497
16,662
(18,391)
2,146||**_£'000_**
_26,022_
_1,100_
_(1,498)_
_2,873_|
||||||
|||28,914||_28,497_|
||||||
Net gains on investments shown in the Statement of Financial Activities of £2,146k (2019: £2,873k) comprise unrealised gains of £1,494k (2019 : £2,450k) and realised gains £652k (2019 : £423k) as a result of disposals realising proceeds of £18.4m (2019 : £1.5m).
During the year, the investments held by Sarasin and Eden Tree were sold and the proceeds placed with Mercer Global Investment Management. These investments can all be converted into cash within one month of application.
Investment properties include Glebe and other properties, the income from which is included in the Board accounts. Investment Properties are carried at open market value based on valuation advice from Savills. The historical cost of these properties is not available.
## **11. DEBTORS**
|Diocesan Parishes - Loans to parishes
Diocesan Parishes - Other amounts due
Sundry Debtors|**Amounts**
**falling due**
**within one**
**year**
**Amounts**
**due after**
**more than**
**one year**
**_Amounts_**
**_falling due_**
**_within one_**
**_year_**
**_Amounts_**
**_due after_**
**_more than_**
**_one year_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
89
28
_97_
_25_
223
-
_258_
_-_
668
12
_666_
_13_
**2020**
**_2019_**|
|---|---|
||980
40
_1,021_
_38_|
|||
The loans to 5 parishes (2019 : 5) are generally unsecured, repayable over a period of five years with interest charged at 0% for loans from the Church Repair Fund and at various rates for loans from the Diocesan Loans Fund. During the year 2 loans totaling £26.7k were drawn down in respect of the Covid-19 Emergency Relief Fund.
62
**NOTES FOR THE FINANCIAL STATEMENTS** _For the year ended 31 December 2020_
## **12. CREDITORS**
|**Related Party Balances:**
Amount due to Diocesan Board of Education
**Other Balances:**
Amount due to Other Trust Funds
Equity Sharing Loans
Deposits - Diocesan Loans Fund (Parishes)
Deposits - Diocesan Loans Fund (Other)
Deposits - Church Repair Fund
Pension Scheme Liabilities
Church Commissioners re Deferred Stipends
CCLA Loan
Sundry Creditors|**Amounts**
**falling due**
**within one**
**year**
**Amounts**
**due after**
**more than**
**one year**
**_Amounts_**
**_falling due_**
**_within one_**
**_year_**
**_Amounts_**
**_due after_**
**_more than_**
**_one year_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
66
-
_30_
_-_
4
-
_8_
_-_
-
295
_-_
_295_
3,880
-
_3,667_
_-_
32
-
_36_
_-_
4,778
-
_4,674_
_-_
77
612
_131_
_1,179_
1,373
-
_-_
_-_
-
500
_-_
_-_
793
-
_988_
_-_
**2020**
**_2019_**|
|---|---|
||11,003
1,407
_9,534_
_1,474_|
|||
The Equity Sharing Loans are made by the Church Commissioners and are secured on property with interest charged at a commercial rate and repayable on the sale of the related property.
The parish deposits in the Church Repair Fund and Diocesan Loan Fund are repayable on demand and they are therefore classified as ‘falling due within one year’. These deposits are placed in bank deposits and other assets. The likelihood of all parishes wishing to withdraw all of their funds at the same time is highly unlikely as Church Repair Fund deposits are generally intended to pay for repairs arising from quinquennial surveys.
## **13. MEMBERS’ LIABILITY**
The Board is a company limited by Guarantee. At 31 December 2020 there were 137 (2019 : 134) members who are liable to contribute £1 each in the event of the company being wound up.
## **14. OPERATING LEASES**
Total commitments under non-cancellable operating leases are as follows:
|**Lease payments - other operating lease:**
Not later than one year after the balance sheet date
In the second to fifth years after the balance sheet date|**2020**
**_2019_**
**£'000**
**_£'000_**
13
_12_
14
_38_|
|---|---|
||27
_50_|
|||
## **15. RELATED PARTY TRANSACTIONS**
During the year the following related party transactions took place:
|**Related Party**
Mrs Julia Burton-Jones
The outstanding balances with related parties
There were no other related party transactions
Details of related parties can be found in the T|**Relationship**
**2020**
**_2019_**
**£'000**
**_£'000_**
Wife of Bishop of Tonbridge
23
_34_
at 31 December 2020 are included in note 12.
during the year or prior year.
rustees Report.
Professional fees in respect of
work on Dementia Friendly
Church Project.|
|---|---|
|||
63
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **16. DESIGNATED FUNDS**
||**Balance at**|||||**Balance at**||
|---|---|---|---|---|---|---|---|
||**1 January**|**Income**|**Expenditure**|**Investment**||**31 December**||
||**2020**|||**Movements**|**Transfers**|**2020**||
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**||
|Central Church Funding|99|-|-|-|-|99||
|Property Fund|7,205|788|-|30|112|8,135||
||**7,304**|**788**|**-**|**30**|**112**|**8,234**||
## **Central Church Funding**
These funds have been received from the Church Commissioners for designated purposes and so have been retained within a specific designated fund.
## **Property Fund**
This fund has been set aside by the Trustees for the purpose of funding Board property acquisitions and development. During the year, income of £788k was represented by the profit on sale of Footscray parsonage. This was subsequently transferred to the Diocesan Pastoral Account and was netted against a transfer in of £1,003k in respect of funding for the St Benedict’s Centre from the Graham Chiesman fund (held in Common Fund). The transfer also included £179k representing the RDSBF’s 50% share of proceeds on the Sale of 34 Ronaldstone Road, Sidcup which was originally posted to the Designated Property Fund when it was sold in 2017 but was transferred to the Church Extension Fund in 2020, and property capitalisations of £76k which were funded by the Common Fund.
|Central Church Funding
Property Fund|**Balance at**
**Balance at**
**1 January**
**Income**
**Expenditure**
**Investment**
**31 December**
**2019**
**Movements Transfers**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
99
-
-
-
-
99
6,745
-
-
-
460
7,205|
|---|---|
||**6,844**
**-**
**-**
**-**
**460**
**7,304**|
|||
64
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **17. RESTRICTED FUNDS**
|Poverty & Hope Appeal
Committee Amongst Deaf
Local Church Urban Fund
Diocesan Pastoral Account
Diocesan Pastoral Account re Sale of Beckenham St Michael Hall
Trust for London (formerly City Parochial Foundation)
Benefice Property
Thames Gateway
Thames Gateway Capital Fund
Parsonage Building Fund
Church Extension Fund
Companion Diocese Funds
Ministry Division RME Ordinand's Grant
Ebbsfleet Youth Worker
Children & Young People Fund
Chatham Town Centre
Children & Young People misc. funds
Cobham and Gravesend Churches Fund
Henry Smith Dementia Project
Together Magazine
Called to Grow - Strategic Development Funding
Past Cases Review
Covid 19 Emergency Relief|**Balance at**
**Balance at**
**1 January**
**Income**
**Expenditure**
**Investment**
**31 December**
**2020**
**Movements**
**Transfers**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
24
29
(30)
-
-
23
23
-
-
-
-
23
34
13
(2)
-
(36)
9
1,285
306
(382)
(8)
489
1,690
159
-
(124)
-
-
35
4
291
(103)
-
(192)
-
35,690
(103)
-
-
(300)
35,287
7
-
-
-
-
7
457
-
-
-
-
457
4
886
-
-
459
1,349
643
-
7
-
179
829
32
90
(105)
-
-
17
(8)
329
(285)
-
-
36
18
34
(34)
-
-
18
53
14
(16)
-
25
76
406
97
-
-
-
503
3
-
-
-
-
3
60
-
(1)
-
-
59
5
1
(6)
-
-
-
1
-
-
-
-
1
50
162
(132)
-
-
80
55
-
(29)
-
-
26
-
27
(155)
-
136
8|
|---|---|
||**39,005**
**2,176**
**(1,397)**
**(8)**
**760**
**40,536**|
|||
## **Poverty and Hope Appeal**
Money raised by an annual appeal and passed on in grants to various missionary and relief agencies.
## **Committee Amongst the Deaf**
Specific donations received for use by this committee.
## **Local Church Urban Fund**
The income arising from the appeal capital is used to pay grants in support of specified projects in urban priority areas within the Diocese. The transfer of £36k represented a contribution to the Covid 19 Emergency Relief Fund.
## **Diocesan Pastoral Account**
Capital monies originally received under the Pastoral Measure 1983 and is restricted thereby. Income includes profit on the sale of fixed assets of £238k (2019 : £nil), furlough grants against Growth Enabler salaries of £54k (2019 : £nil) and rental income of £24k (2019 : £15k). Expenditure includes a £105k grant to the St. Benedict’s Centre (2019 : £nil), Growth Enabler costs of £135k (2019 : £25k)
65
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **17. RESTRICTED FUNDS (CONTINUED)**
and £21k towards the Bishops’ Discretionary Fund. The net transfer of £489k relates to profit on the sale of Footscray parsonage of £788k less parsonage catch up works of £250k, provision of the Archdeacon’s Discretionary Funds of £20k and support for Strategic Development Fund and Community Engagement & Social Action posts of £29k.
## **Pastoral Account re Sale of Beckenham St. Michael Hall**
Capital monies originally received under the Pastoral Measure 1983 and is restricted thereby. This has been shown separately from the Diocesan Pastoral Account because the aim is to use the funds for that specific parish.
## **Trust for London**
An annual allocation from the Foundation to use within the Archdeaconry of Bromley and Bexley. The transfer of £192k represents contributions to the Children and Young Peoples 500k Fund, community and children’s projects, training, stipends, administration and £100k towards the Covid 19 Emergency Relief Fund.
## **Benefice Property**
The fund value represents the capital value of parsonage houses less depreciation. The net transfer of £300k relates to adjustments required in relation to parsonage purchases and sales and the capitalisation of parsonage improvement projects.
## **Thames Gateway**
Money given by Tonbridge Deanery towards specific projects in the Thames Gateway area.
## **Thames Gateway Capital**
Money initially collected through the parish share specifically to raise £1m over 10 years towards capital projects in the Thames Gateway area.
## **Parsonage Building Fund**
Money held by the RSDBF, under s5(3) of the Parsonages Measure 1938 (amended), from the sale of a parsonage or other parsonage land held in trust for the benefice concerned. The income of £886k represents the profit on sale of 206 New Hythe Lane, Lamberhurst and 100 Park Crescent, Erith. The transfer of £459k represents the net book value of these properties being transferred from the Benefice Property.
## **Church Extension Fund**
Monies given under an appeal in 1956 for the purchase or improvement of churches, halls, parsonages, curate houses and other property. The fund includes 4 houses in various parishes with a net book value of £250k. The transfer of £179k represents the RDSBF’s 50% share of proceeds on the Sale of 34 Ronaldstone Road, Sidcup which was originally posted to the Designated Property Fund when it was sold in 2017.
## **Companion Diocese Funds**
This represents collections taken at Confirmation services and other income for the purpose of maintaining and developing partnerships with overseas link Dioceses.
## **Ministry Division RME Ordinand’s Grant**
Block grant received from the Archbishop’s Council Ministry Division to fund ordinand training.
## **Ebbsfleet Youth Worker**
Grant received from the Ebbsfleet Development Corporation to be spent on the provision of a youth worker in Ebbsfleet for the next 3 years.
66
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **17. RESTRICTED FUNDS (CONTINUED)**
## **Children and Young People 500K Fund**
Fund established as part of the Called Together initiative. The transfer of £25k was allocated from the Trust for London Fund to support Children and Young People projects specifically in the Bromley & Bexley Archdeaconry.
## **Chatham Town Centre**
Grant received from the Church Commissioners to help fund redevelopment of Chatham Town Centre.
## **Children and Young People Funds**
This represents 2 small grants specifically for the Children and Young People Projects, Angel Space and Listen to Learn.
## **Cobham and Gravesend Churches Fund**
Fund to be used for purposes connected with the social responsibility mission of churches in the Cobham and Gravesend area.
## **Henry Smith Dementia Project**
Grant received from the Henry Smith Charity towards 2 years’ salary costs of a part-time project worker helping churches in Rochester and Canterbury Dioceses develop their ministry with older people and people with dementia.
## **Together Magazine**
Grant from the Bishops Fund for Mission towards the production and circulation of the Rochester Diocese Together Magazine.
## **Called to Grow**
In late June 2019, the Strategic Investment Board of the Church Commissioners agreed to award funding, on behalf of the Archbishops’ Council, of £1,388K. This was the full amount of the RDSBF’s Stage Two application and facilitates growth enablement projects in five focus parishes. In particular, this support is to evangelistic activities in Anerley, Erith, Gillingham and Strood. The funding is over 5 years, 2019-2024.
## **Past Cases Review**
The Past Cases Review, is a comprehensive safeguarding review currently underway across churches and key institutions within the Diocese of Rochester. The purpose of the Review is to help find out whether all known cases of concern about the behaviour of clergy and church officers towards children and vulnerable adults have been considered, risk assessed and dealt with appropriately. Independent reviewers have carried out the Review which is expected to be completed in 2021. The anticipated cost is expected to be divided between the Bishop, the Diocesan Pastoral Account and the Church Commissioners. The total cost is anticipated to be £120k.
## **Covid 19 Emergency Relief Fund**
The fund was set up to make grants to parishes that are struggling financially during the Covid 19 pandemic. Income of £27k represents donations from 7 parishes wishing to add their support to this fund and their colleagues. Transfers of £136k were from Trust for London and the Local Church Urban Fund.
67
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **17. RESTRICTED FUNDS (CONTINUED)**
|**Balance at**
**Balance at**
**1 January**
**Income**
**Expenditure Investment**
**31 December**
**2019**
**Movements Transfers**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
Poverty & Hope Appeal
20
34
(30)
-
-
24
Committee Amongst Deaf
23
-
-
-
-
23
Local Church Urban Fund
25
13
(4)
-
-
34
Diocesan Pastoral Account
2,230
31
(1,195)
-
219
1,285
Diocesan Pastoral Account re Sale of Beckenham St Michael Hall
169
-
(10)
-
-
159
Trust for London (formerly City Parochial Foundation)
30
244
(187)
-
(83)
4
Benefice Property
35,360
-
-
-
330
35,690
Thames Gateway
7
-
-
-
-
7
Thames Gateway Capital Fund
457
-
-
-
-
457
Parsonage Building Fund
563
-
-
-
(559)
4
Church Extension Fund
786
-
(143)
-
-
643
Partnership Funds
32
168
(168)
-
-
32
Ministry Division RME Ordinand's Grant
(11)
236
(233)
-
-
(8)
Ebbsfleet Youth Worker
15
33
(30)
-
-
18
Children & Young People Fund
22
64
(58)
-
25
53
Chatham Town Centre
256
165
(15)
-
-
406
Children & Young People misc. funds
3
-
-
-
-
3
Cobham and Gravesend Churches Fund
58
-
-
-
2
60
Henry Smith Dementia Project
-
39
(34)
-
-
5
Together Magazine
-
4
(3)
-
-
1
Called to Grow - Strategic Development Funding
-
75
(25)
-
-
50
Past Cases Review
-
40
(25)
-
40
55
**40,045**
**1,146**
**(2,160)**
**-**
**(26)**
**39,005**|Poverty & Hope Appeal
Committee Amongst Deaf
Local Church Urban Fund
Diocesan Pastoral Account
Diocesan Pastoral Account re Sale of Beckenham St Michael Hall
Trust for London (formerly City Parochial Foundation)
Benefice Property
Thames Gateway
Thames Gateway Capital Fund
Parsonage Building Fund
Church Extension Fund
Partnership Funds
Ministry Division RME Ordinand's Grant
Ebbsfleet Youth Worker
Children & Young People Fund
Chatham Town Centre
Children & Young People misc. funds
Cobham and Gravesend Churches Fund
Henry Smith Dementia Project
Together Magazine
Called to Grow - Strategic Development Funding
Past Cases Review|**Balance at**
**Balance at**
**1 January**
**Income**
**Expenditure Investment**
**31 December**
**2019**
**Movements Transfers**
**2019**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
20
34
(30)
-
-
24
23
-
-
-
-
23
25
13
(4)
-
-
34
2,230
31
(1,195)
-
219
1,285
169
-
(10)
-
-
159
30
244
(187)
-
(83)
4
35,360
-
-
-
330
35,690
7
-
-
-
-
7
457
-
-
-
-
457
563
-
-
-
(559)
4
786
-
(143)
-
-
643
32
168
(168)
-
-
32
(11)
236
(233)
-
-
(8)
15
33
(30)
-
-
18
22
64
(58)
-
25
53
256
165
(15)
-
-
406
3
-
-
-
-
3
58
-
-
-
2
60
-
39
(34)
-
-
5
-
4
(3)
-
-
1
-
75
(25)
-
-
50
-
40
(25)
-
40
55|
|---|---|---|
|||**40,045**
**1,146**
**(2,160)**
**-**
**(26)**
**39,005**|
68
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **18. ENDOWMENT FUNDS**
|Stipends Capital Account
Training
Pensions & Retired Clergy
Buildings
Parsonages
Local Church Urban Fund
Social Mission
David Goodwin Legacy|**Balance at**
**Balance at**
**1 January**
**Income**
**Expenditure**
**Investment**
**31 December**
**2020**
**Movements**
**Transfers**
**2020**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
16,450
-
(12)
1,237
427
18,102
1,331
-
-
88
6
1,425
1,475
-
-
39
2
1,516
75
-
-
5
-
80
616
-
-
40
2
658
455
-
-
30
2
487
1,069
-
-
70
4
1,143
649
24
-
-
-
673|
|---|---|
||**22,120**
**24**
**(12)**
**1,509**
**443**
**24,084**|
|||
## **Stipends Capital Account**
Investments held under the Endowments and Glebe Measure 1976. Income is credited to the Common Fund and used for stipend purposes. The main movements in the year relate to parsonage sales and purchases, capitalisation of works to parsonages and investment gains. The original liability for clergy pensions liabilities was funded by the Stipends Capital account, and the transfer also represents the reduction in clergy pension deficit contribution liabilities in the year.
## **Training**
Mainly a legacy to provide a contribution towards the cost of training ordinands. Some small funds also for general training of clergy and readers. Income arising in the year has been applied to the Common Fund to offset the full costs incurred.
## **Pensions and Retired Clergy**
Legacies and the result of an appeal for the provision of housing for the retired clergy. Income from investments arising in the year has been applied to the Common Fund to offset pension costs incurred.
## **Buildings**
Comprises of two funds, the first to support the fabric of the Diocesan Office and the second to provide income for grants to PCC’s. Income arising has been applied to the Common Fund to offset the full costs incurred.
## **Parsonages**
An endowment transferred from the Church Commissioners upon setting up of the Parsonage Scheme. Income arising has been applied to the Common Fund to offset full costs incurred.
## **Local Church Urban Fund**
The initial capital of £250k was raised by appeal. The income is used to pay grants in support of specified projects in urban priority areas within the Diocese.
## **Social Mission**
Comprised of four funds Oakhurst, Ravensbourne, Hollywood Manor and Council for Social Aid (formerly Rock Avenue). Income from the funds may be applied for the general purposes of social mission in the Diocese.
## **David Goodwin Legacy**
A residuary estate held in trust by the RDSBF as a Capital Fund and the interest thereon being applied for Ecclesiastical or charitable purposes of St Peter with St Margaret, Rochester, being known as the ‘Parish of Rochester’. The capital sum is owned by the RDSBF. The members of the RDSBF are the charity trustees, being the persons who have the general control and management of the administration of the capital and make decisions about how the income is spent, or the development of a reserves policy.
69
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **18. ENDOWMENT FUNDS (CONTINUED)**
||**Balance at**|||||**Balance at**||
|---|---|---|---|---|---|---|---|
||**1 January**|**Income**|**Expenditure**|**Investment**||**31 December**||
||**2019**|||**Movements **|**Transfers**|**2019**||
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**||
|Stipends Capital Account|14,031|-|(146)|1,173|1,392|16,450||
|Training|1,173|-|-|158|-|1,331||
|Pensions & Retired Clergy|1,403|-|(1)|73|-|1,475||
|Buildings|64|-|-|11|-|75||
|Parsonages|543|-|-|73|-|616||
|Local Church Urban Fund|401|-|-|54|-|455||
|Social Mission|939|-|-|130|-|1,069||
|David Goodwin Legacy|645|5|(1)|-|-|649||
||**19,199**|**5**|**(148)**|**1,672**|**1,392**|**22,120**||
## **19. TRANSFERS BETWEEN FUNDS**
|Transfer of funds to reduce the clergy pension deficit
Parsonage and ministry house movements
DBF Property movements
Transfer to Archdeacons' Discretionary Funds
Transfers from Trust for London
SDF Support Function/CESA Staff Costs
Mercer Management Fees Capitalised
Transfers as at 31 December 2020|**Common**
**Designated**
**Restricted**
**Endowment**
**Fund**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
(621)
-
-
621
294
-
(79)
(215)
(1,078)
112
966
-
20
-
(20)
-
67
-
(67)
-
40
-
(40)
(37)
-
-
37|
|---|---|
||(1,315)
112
760
443|
|||
The transfers summarised above are described in notes 16-18.
|**Common**
**Designated**
**Restricted**
**Endowment**
**Fund**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
Transfer of funds to reduce the clergy pension deficit
(2,605)
-
-
2,605
Parsonage and ministry house additions
(82)
-
82
-
Transfer of DBF Properties
-
460
-
(460)
Purchase of DBF Properties
753
-
-
(753)
Transfer to Archdeacons' Discretionary Funds
20
-
(20)
-
Transfers from Trust for London
58
-
(58)
-
Write off of Holy Trinity Gillingham Loan
30
-
(30)
-
Transfers as at 31 December 2018
(1,826)
460
(26)
1,392|Transfer of funds to reduce the clergy pension deficit
Parsonage and ministry house additions
Transfer of DBF Properties
Purchase of DBF Properties
Transfer to Archdeacons' Discretionary Funds
Transfers from Trust for London
Write off of Holy Trinity Gillingham Loan
Transfers as at 31 December 2018|**Common**
**Designated**
**Restricted**
**Endowment**
**Fund**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
(2,605)
-
-
2,605
(82)
-
82
-
-
460
-
(460)
753
-
-
(753)
20
-
(20)
-
58
-
(58)
-
30
-
(30)
-|
|---|---|---|
|||(1,826)
460
(26)
1,392|
70
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **20. NET ASSETS BETWEEN FUNDS**
|Note
Fixed assets
9
Investments
10
Current assets
Creditors
Creditors > 1 year
As at 31 December 2020|**Common**
**Designated**
**Restricted**
**Endowment**
**Total**
**Fund**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
1,967
9,566
36,566
3,362
51,461
8,192
855
-
19,867
28,914
6,447
(1,892)
3,970
1,544
10,069
(10,926)
-
-
(77)
(11,003)
(500)
(295)
-
(612)
(1,407)|
|---|---|
||5,180
8,234
40,536
24,084
78,034|
|||
|Fixed assets
Investments
Current assets
Creditors
Creditors > 1 year
As at 31 December 2019|**Common**
**Designated**
**Restricted**
**Endowment**
**Total**
**Fund**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
2,982
9,427
36,808
2,312
51,529
7,622
985
-
19,890
28,497
5,433
(2,635)
2,197
1,228
6,223
(9,225)
(178)
-
(131)
(9,534)
-
(295)
-
(1,179)
(1,474)|
|---|---|
||6,812
7,304
39,005
22,120
75,241|
|||
## **21. ASSETS HELD AS CUSTODIAN TRUSTEE**
|Investments (at cost)
Property
Cash at bank|**2020**
**_2019_**
**£'000**
**_£'000_**
697
_687_
648
_648_
741
_764_|
|---|---|
||2,086
_2,099_|
|||
## **22. PENSION SCHEMES**
## **a. Revaluation of Pension Scheme Liabilities**
The revaluation shown in the Statement of Financial Activities comprises revaluations of both the clergy scheme and the lay scheme as follows:-
|Investments (at cost)
Property
Cash at bank|**2020**
**_2019_**
**£'000**
**_£'000_**
697
_687_
648
_648_
741
_764_|
|---|---|
||2,086
_2,099_|
|||
## **b. The Church of England Funded Pension Scheme (for clergy)**
RDSBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.
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 a specific Responsible Body and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The
71
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **22. PENSION SCHEMES (CONTINUED)**
pensions costs charged to the Statement of Financial Activities in the year are contributions payable towards benefits and expenses accrued in that year.
A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:
- An average discount rate of 3.2% p.a.;
- RPI inflation of 3.4% p.a. (and pension increases consistent with this);
- Increase in pensionable stipends of 3.4% p.a.; and
- Mortality in accordance with 95% of the S3NA_VL tables, with allowance for improvements in mortality rates in line with the CMI2018 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% p.a..
Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.
**----- Start of picture text -----**
% of pensionable stipends January 2018 to December 2020 January 2021 to December 2022
Deficit recovery contributions 11.9% 7.1%
**----- End of picture text -----**
As at 31 December 2018, the deficit recovery contributions under the recovery plan in force at that time were 11.9% of pensionable stipends until December 2025.
As at 31 December 2019 and 31 December 2020, the deficit recovery contributions under the recovery plan in force were as set out in the above table.
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. The movement in the balance sheet liability over 2019 and over 2020 is set out in the table below.
|As at 31 December 2019 and 31 December 2020, the defcit recovery contributions under the recovery plan
in force were as set out in the above table.
For senior ofce 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 defcit recovery payments to be recognised as a liability. The
movement in the balance sheet liability over 2019 and over 2020 is set out in the table below.|As at 31 December 2019 and 31 December 2020, the defcit recovery contributions under the recovery plan
in force were as set out in the above table.
For senior ofce 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 defcit recovery payments to be recognised as a liability. The
movement in the balance sheet liability over 2019 and over 2020 is set out in the table below.|
|---|---|
|||
||**2020**
**_2019_**
**£’000**
**_£’000_**|
|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|1,310
_3,915_
(583)
_(573)_
11
_76_|
||(572)
_(497)_
(49)
_(2,108)_|
||(621)
_(2,605)_|
||689
_1,310_|
|||
* Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.
This liability is a liability of the Stipends Capital Account (within Endowment Funds). Deficit contributions have been paid during the year by the Common Fund. Interest costs have been incurred in the Common Fund. The net of these two items together with the revaluation of liabilities shown above, is included in Transfers (note 19) to ensure that the deficit reduction is reflected in the Stipends Capital Account (note 18). The current year costs of providing pensions to diocesan clergy are included within expenditure within the Common Fund.
72
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **22. PENSION SCHEMES (CONTINUED)**
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
|||December|December|December||
|---|---|---|---|---|---|
|||2020|2019|2018||
||Discount rate|0.2% pa|1.1% pa|2.1% pa||
||Price inflation|3.1% pa|2.8% pa|3.1% pa||
||Increase to total pensionable payroll|1.6% pa|1.3% pa|1.6% pa||
The legal structure of the scheme is such that if another Responsible Body fails, RDSBF could become responsible for paying a share of that Responsible Body’s pension liabilities.
## **c. Defined Contribution Scheme (for lay personnel)**
A defined contribution scheme is operated for the majority of current RDSBF staff. The RDSBF contributes 5% of base salary into the Scheme and employees also contribute 5% (after tax). The Scheme is administered by Scottish Widows.
Amounts payable in the year to this scheme by the RDSBF amount to £56,482 (2019 : £39,457) and the amount owed to the scheme at 31 December 2020 was £nil (2019 : £nil).
## **d. Staff Defined Benefit Scheme (for lay personnel)**
RDSBF (the Employer) operates a defined benefit pension arrangement called the Rochester Diocesan Staff Retirement Scheme (the Scheme). The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death. This is a closed scheme to new employees and currently has five current employees of the RDSBF and one current employee of the Rochester Diocesan Board of Education who are beneficiaries of the Scheme.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Employer must agree with the Trustees of the Scheme that the contributions to be paid to address any shortfall against the Statutory Funding Objectives and contributions to pay for future accrual of benefits.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2018 and the next valuation of the Scheme is due as at 31 March 2021. In the event that the valuation reveals a larger deficit than expected the RDSBF may be required to increase contributions above those set out in the existing Schedule of Contributions. Conversely, if the position is better than expected, it is possible that contributions may be reduced.
The RDSBF expects to pay accrual contributions of £85k in the year to 31 December 2021 (based on salaries between 31 December 2019 and 31 December 2020 – if members have left or retired then this number would be expected to reduce).
The Scheme is managed by a board of Trustees appointed in part by the RDSBF and part from elections by members of the Scheme. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme’s assets. The Trustees delegate some of these functions to their professional advisers where appropriate.
The effect of the judgement regarding equalization of guaranteed minimum pensions for past transfers has been considered in the context of a past service cost during the period (albeit in practice the amount would appear to be insignificant – see below).
There were no plan amendments, curtailments or settlements through the period.
At 31 December 2020 the FRS102 valuation, which is based on different underlying assumptions to the actuarial valuation, calculated a surplus in the Scheme of £818k (2019 : £855k). Under FRS102 the Employer
73
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **22. PENSION SCHEMES (CONTINUED)**
is only allowed to recognise such assets in its balance sheet to the extent that it can recover the surplus either through reduced contributions in the future or through refunds from the plan. As RDSBF is unable to recover the surplus, the asset value of the Scheme at 31 December 2020 reflected in these accounts is £nil. This compares to an asset value of £nil at the previous review date.
|**Principal Actuarial Assumptions**|**31 December 2020**
**_31 December 2019_**|
|---|---|
|Increases in payment to Post 1992 benefits in excess of GMP (RPI max 5%)
Increases in payment to Post 2016 benefits in excess of GMP (CPI max 2.5%)
Revaluation in deferment
(benefits in excess of GMP)
Inflation (CPI)
Salary increases
Discount rate
Inflation (RPI)|3.00%
_3.10%_
1.85%
_1.80%_
2.30%
_2.20%_
2.30%
_2.20%_
3.10%
_3.20%_
1.30%
_2.10%_
3.10%
_3.20%_|
|Post-retirement mortality|95% of the S2PxA tables
with CMI 2017 projections
using a long-term
improvement rate of
1.25% p.a.
_95% of the S2PxA tables_
_with CMI 2017 projections_
_using a long-term_
_improvement rate of_
_1.25% p.a._|
|Commutation|_No allowance has been_
_made for members to take_
_tax free cash_
No allowance has been
made for members to take
tax free cash|
The current asset split is as follows:
|The current asset split is as follows:||
|---|---|
||**Bid values as at 31**
**December 2020**
**_Bid values as at 31_**
**_December 2019_**
**£’000**
**_£’000_**|
|Global Equities
Index Linked gilts
With-profit deferred annuity policy
Cash|4,948
_4,442_
3,249
_2,757_
19
_18_
122
_110_|
|**Total assets**|8,338
**_7,327_**|
The following amounts at 31 December 2020 and 31 December 2019 were measured in accordance with the requirements of FRS102:
|
with the requirements of FRS102:||
|---|---|
|**Balance sheet**|**At 31 December 2020**
**_At 31 December 2019_**
**£’000**
**_£’000_**|
|Fair value of assets
Present value of funded obligations|8,338
_7,327_
(7,520)
_(6,472)_|
|**Surplus/(deficit) in scheme**|**818**
_855_|
|Impact on limit of recognisable surplus|(818)
_(855)_|
|**Net defined benefit asset/(liability)**|**-**
**_-_**|
|**Amount recognised in Statement of Financial Activities (SOFA)**|**£’000**
**_£’000_**
**Period to 31 December**
**2020**
**_Period to 31 December_**
**_2019_**|
|---|---|
|Current service cost
Administration costs
Interest on liabilities
Interest on assets
Past service costs
Settlement and curtailment cost|86
_99_
-
_28_
136
_166_
(155)
_(188)_
-
_-_
-
_-_
-|
|**Total charge to SOFA**|**67**
**_105_**|
74
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **22. PENSION SCHEMES (CONTINUED)**
||**Remeasurements over the year**|**Period to 31 December 2020**|**_Period to 31 December_**
**_2019_**||
|---|---|---|---|---|
|||**£’000**|**_£’000_**||
||(Gain)/loss on assets in excess of interest|(787)|_(814)_||
||Experience losses/(gains) on liabilities|-|_-_||
||Losses/(gains) from changes to demographic assumptions|(440)|_-_||
||Losses/(gains) from changes to financial assumptions|1,279|_735_||
||**Total remeasurements**|52|**_(79)_**||
||||||
||**Change in value of the assets**|**Period to 31 December 2020**|**_Period to 31 December_**
**_2019_**||
|||**£’000**|**_£’000_**||
||**Fair value of assets at start**|**7,327**|**_6,189_**||
||Interest on assets|155|_188_||
||Company contributions|82|_283_||
||Contributions by Scheme participants|16|_18_||
||Benefits paid|(29)|_(137)_||
||Administration costs|-|_(28)_||
||Change due to settlements and curtailments|-|_-_||
||Return on assets less interest|787|_814_||
||**Fair value of assets at end**|**8,338**|**_7,327_**||
||||||
||**Actual return on assets**|**942**|**1,002**||
||||||
||**Change in value of DB liabilities**|**Period to 31 December 2020**|**_Period to 31 December_**
**_2019_**||
|||**£’000**|**_£’000_**||
||**Value of liabilities at start**|**6,472**|**_5,591_**||
||Current service cost|86|_99_||
||Contributions by scheme participants|16|_18_||
||Past service costs|-|_-_||
||Interest on liabilities|136|_166_||
||Benefits paid|(29)|_(137)_||
||Change due to settlements or curtailments|-|_-_||
||Experience (gain)/loss on liabilities|-|_-_||
||Changes to demographic assumptions|(440)|_-_||
||Changes to financial assumptions|1,279|_735_||
||**Value of liabilities at end**|**7,520**|**_6,472_**||
||||||
||**Projected Profit & Loss account for next year**||**Period to 31 Dec 2021**
**£’000**||
||Current service cost||103||
||Administration costs||-||
||Interest on liabilities||98||
||Interest on assets||(109)||
||Settlement and curtailment costs||-||
||Past service cost||-||
||**Total**||**92**||
The above estimate is based on the assumptions adopted at the Review Date and assumes the following:
i Cashflows to and from the pension scheme are broadly the same as for the current period. ii There are no events (other than those already notified to us) that would give rise to a settlement, curtailment or past service cost.
75
## **NOTES FOR THE FINANCIAL STATEMENTS**
_For the year ended 31 December 2020_
## **23. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2019**
||||||
|---|---|---|---|---|
|**Income**
Donations:
- Parish Offers
- Other
Investment income
Charitable activities
**Total income**
**Expenditure**
Generating income
Charitable activities
**Total Expenditure**
**Operating (Deficit)/Surplus:**
Profit on sale of property
Gains/(losses) on investments
**Net Income**
**Reserve Movements:**
Net Income
Gains on revaluation of fixed assets
Revaluation of pension scheme liabilities
Transfers between funds
**Net movement in funds**
Reserve balances at 1st January 2019
Reserve balances at 31st December 2019|**Common**
**Designated**
£'000
£'000
9,057
-
166
-
1,448
-
12
-
10,683
-
(484)
-
(10,739)
-
(11,223)
-
**(540)**
**-**
-
-
1,201
-
**661**
**-**
661
-
-
-
1,930
-
(1,826)
460
**765**
**460**
6,047
6,844
**6,812**
**7,304**
note 16
**Unrestricted**|**Restricted**
£'000
-
1,093
53
-
1,146
(10)
(2,150)
(2,160)
**(1,014)**
-
-
**(1,014)**
(1,014)
-
-
(26)
**(1,040)**
40,045
**39,005**
note 17|**Endowment**
£'000
-
-
5
-
5
(1)
(147)
(148)
**(143)**
-
1,672
**1,529**
1,529
-
-
1,392
**2,921**
19,199
**22,120**
note 18|**Total**
**_Total_**
**2019**
**_2018_**
£'000
_£'000_
9,057
_9,190_
1,259
_1,576_
1,506
_1,131_
12
_19_|
|||||11,834
_11,916_|
|||||(495)
_(271)_
(13,036)
_(12,671)_|
|||||(13,531)
_(12,942)_|
||||||
|||||**(1,697)**
**_(1,026)_**|
|||||-
_1,408_
2,873
_1,647_|
|||||**1,176**
**_2,029_**|
|||||1,176
_2,029_
-
_1,144_
1,930
_449_
-
_-_|
|||||**3,106**
**_3,622_**|
|||||72,135
_68,513_|
|||||**75,241**
**_72,135_**|
||||||
76
## **CUSTODIAN TRUSTEESHIP FUNDS – BALANCE SHEET** _For the year ended 31 December 2020_ This page does not form part of the audited financial statements
|Investments at cost (see below)
Freehold property
Freehold interest in leased properties
Cash
National Savings Bank
CCLA Investment Management Ltd - Deposit Fund
Miscellaneous
Church Commissioners Deposit Account
Barclays Bank - Current Account
Total Assets
Representing
Parochial Funds
Non-Parochial Funds
Total Funds
**INVESTMENTS NOTE**
CAPITAL
Quoted Investments
Unlisted Investments
**CCLA Investment Management Ltd**
Investment Fund Income Shares
202,772 (2019 203,552 shares)
Fixed Interest Fund Income Shares
44,806 (2019 44,806 shares)
Global Equity
25,919 (2019 25,919 shares)
Property Fund
34,935 (2019 34,935 shares)
REVENUE
Unlisted Investments
**CCLA Investment Management Ltd**
Investment Fund Income Shares
2,127 (2019 2,312 shares)|**Capital**
**Revenue**
**_Capital_**
**_Revenue_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
694
3
_683_
_4_
**2020**
**_2019_**|
|---|---|
||645
-
_645_
_-_|
||3
-
_3_
_-_|
||11
1
_11_
_1_
633
94
_650_
_94_
-
2
_-_
_8_|
||644
97
_661_
_103_|
||1,986
100
_1,992_
_107_|
||1,968
96
_1,960_
_102_
18
4
_32_
_5_|
||1,986
100
_1,992_
_107_|
||**Cost**
**Market value**
**_Cost_**
**_Market value_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
5
151
_5_
_145_
**2020**
**_2019_**|
||543
4,154
_532_
_3,901_
72
76
_72_
_73_
30
68
_30_
_57_
44
45
_44_
_48_|
||689
4,343
_678_
_4,079_|
||694
_4,494_
_683_
_4,224_|
||3
44
_4_
_44_|
|||
77
## **PARISH FUND BALANCES**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
||||
|---|---|---|
|**CHURCH REPAIR FUND BALANCES**
As at 31 December 2020
Deposits by Parishes with Diocese:
Parochial Funds
**LOANS FUND BALANCES**
As at 31 December 2020
Deposits by Parishes with Diocese:
Parochial Funds
Other Sources|**2020**
**_2019_**
**£'000**
**_£'000_**
Use of Funds Deposited by Parishes with Diocese:
4,778
_4,674_
Parish Loans
Funds on Deposit and other
assets
4,778
_4,674_
**2020**
**_2019_**
**£'000**
**_£'000_**
Use of Funds Deposited by Parishes with Diocese:
3,880
_3,667_
Parish & Clergy - Loans
32
_36_
Other Loans
Funds on Deposit and other
assets
3,912
_3,703_|**2020**
**_2019_**
**£'000**
**_£'000_**
9
_9_
4,769
_4,665_|
|||4,778
_4,674_|
|||**2020**
**_2019_**
**£'000**
**_£'000_**
107
_113_
14
_18_
3,791
_3,572_|
|||3,912
_3,703_|
||||
The Church Repair Fund and Loans Fund have been consolidated in the Financial Statements of the Rochester Diocesan Society and Board of Finance.
78
CoNid".19
TeStiDg
ELIVERIES
Covid testing centre ot
hrist Church, LLJton
## **PARISH OFFERS RECEIVED BY PARISH**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
## **BECKENHAM DEANERY**
|**BECKENHAM DEANERY**||
|---|---|
|ANERLEY TEAM MINISTRY|68,700|
|BECKENHAM CHRIST CHURCH PCC|102,474|
|BECKENHAM HOLY TRINITY PCC|61,670|
|BECKENHAM ST BARNABAS PCC|48,000|
|BECKENHAM ST GEORGE PCC|87,867|
|BECKENHAM ST JAMES PCC|32,415|
|BECKENHAM ST JOHN THE BAPTIST PCC|114,000|
|BECKENHAM ST MICHAEL W ST AUGUSTINE PCC|46,760|
|BECKENHAM ST PAUL PCC|66,447|
|PENGE ST JOHN THE EVANGELIST PCC|37,060|
|SHORTLANDS PCC|76,560|
|**TOTAL BECKENHAM DEANERY**|**741,953**|
|**BROMLEY DEANERY**||
|BICKLEY PCC|58,425|
|BROMLEY CHRIST CHURCH PCC|50,988|
|BROMLEY COMMON HOLY TRINITY PCC|31,423|
|BROMLEY COMMON ST AUGUSTINE W ST LUKES PCC|81,180|
|BROMLEY ST ANDREW PCC|28,767|
|BROMLEY ST JOHN THE EVANGELIST PCC|62,561|
|BROMLEY ST MARK PCC|65,600|
|BROMLEY ST MARY PCC|65,843|
|BROMLEY ST PETER & ST PAUL PCC|81,576|
|CHISLEHURST THE ANNUNCIATION PCC|63,321|
|CHISLEHURST CHRIST CHURCH PCC|73,724|
|CHISLEHURST ST NICHOLAS PCC|83,700|
|HAYES PCC|67,800|
|**TOTAL BROMLEY DEANERY**|**814,908**|
|**ERITH DEANERY**||
|BARNEHURST PCC|34,847|
|BELVEDERE ALL SAINTS PCC|21,333|
|BELVEDERE ST AUGUSTINE PCC|34,744|
|BEXLEYHEATH CHRIST CHURCH PCC|66,064|
|BEXLEYHEATH ST PETER PCC|24,817|
|BOSTALL HEATH PCC|31,191|
|CRAYFORD PCC|52,020|
|ERITH CHRIST CHURCH PCC|8,002|
|ERITH ST JOHN THE BAPTIST PCC|40,200|
|FALCONWOOD PCC|36,186|
|NORTHUMBERLAND HEATH PCC|57,120|
|SLADE GREEN PCC|15,000|
|WELLING PCC|67,074|
|**TOTAL ERITH DEANERY**|**488,598**|
|**SIDCUP DEANERY**||
|BEXLEY ST JOHN THE EVANGELIST PCC|24,797|
|NORTHCRAY|8,000|
|BEXLEY ST MARY PCC|28,239|
|BLENDON PCC|49,992|
|FOOTSCRAY PCC|7,800|
|JOYDENS WOOD PCC|24,479|
|LAMORBEY HOLY REDEEMER PCC|19,914|
|LAMORBEY HOLY TRINITY PCC|37,373|
|SIDCUP CHRIST CHURCH PCC|69,200|
|SIDCUP ST ANDREW PCC|15,000|
|SIDCUP ST JOHN THE EVANGELIST PCC|48,000|
|**TOTAL SIDCUP DEANERY**|**332,794**|
80
## **PARISH OFFERS RECEIVED BY PARISH**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
|**ORPINGTON DEANERY**||
|---|---|
|BIGGIN HILL PCC|62,520|
|CHELSFIELD PCC|54,095|
|CRAY ST BARNABAS PCC|25,000|
|CRAY VALLEY|7,000|
|CROFTON PCC|84,300|
|CUDHAM PCC|31,340|
|DOWNE PCC|20,856|
|FARNBOROUGH ST GILES PCC|64,323|
|FARNBOROUGH ST NICHOLAS PCC|52,161|
|GREEN STREET GREEN AND PRATTS BOTTOM PCC|64,064|
|KESTON PCC|29,000|
|ORPINGTON ALL SAINTS PCC|81,000|
|ORPINGTON CHRIST CHURCH PCC|75,255|
|PETTS WOOD PCC|40,441|
|**TOTAL ORPINGTON DEANERY**|**691,355**|
|**TOTAL BROMLEY & BEXLEY**|**3,069,608**|
|**COBHAM DEANERY**||
|ASH PCC|33,685|
|RIDLEY PCC|5,872|
|COBHAM PCC|12,000|
|LUDDESDOWNE & DODE PCC|11,668|
|FAWKHAM & HARTLEY PCC|40,600|
|ISTEAD RISE PCC|38,104|
|LONGFIELD PCC|23,164|
|MEOPHAM PCC|55,524|
|NURSTEAD PCC|4,250|
|SOUTHFLEET PCC|39,000|
|**TOTAL COBHAM DEANERY**|**263,867**|
|**DARTFORD DEANERY**||
|CROCKENHILL PCC|19,000|
|DARENTH PCC|9,600|
|HORTON KIRBY PCC|20,559|
|SUTTON-AT-HONE PCC|9,758|
|DARTFORD CHRIST CHURCH PCC|52,488|
|DARTFORD HOLY TRINITY PCC|26,000|
|DARTFORD ST ALBAN PCC|9,996|
|DARTFORD ST EDMUND KING & MARTYR PCC|487|
|STONE PCC|31,250|
|SWANLEY ST MARY THE VIRGIN PCC|2,792|
|SWANLEY ST PAUL & HEXTABLE ST PETER PCC|39,750|
|WILMINGTON PCC|57,853|
|**TOTAL DARTFORD DEANERY**|**279,533**|
|**GILLINGHAM DEANERY**||
|GILLINGHAM HOLY TRINITY PCC|16,319|
|GILLINGHAM ST AUGUSTINE PCC|30,000|
|GILLINGHAM ST BARNABAS PCC|7,020|
|GILLINGHAM ST LUKE PCC|7,488|
|GILLINGHAM ST MARK PCC|61,859|
|GILLINGHAM ST MARY ISLAND DCC|13,141|
|GILLINGHAM ST MARY MAGDALENE PCC|17,335|
|RAINHAM PCC|82,000|
|SOUTH GILLINGHAM PCC|121,200|
|**TOTAL GILLINGHAM DEANERY**|**356,362**|
81
## **PARISH OFFERS RECEIVED BY PARISH**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
|**GRAVESEND DEANERY**||
|---|---|
|CHALK PCC|35,945|
|GRAVESEND HOLY FAMILY PCC|11,000|
|IFIELD PCC|12,600|
|GRAVESEND ST AIDAN PCC|21,094|
|GRAVESEND ST GEORGE PCC|56,800|
|GRAVESEND ST MARY PCC|13,200|
|GREENHITHE PCC|34,500|
|MILTON CHRIST CHURCH PCC|30,502|
|MILTON ST PETER & ST PAUL PCC|12,623|
|NORTHFLEET & ROSHERVILLE PCC|5,000|
|PERRY STREET PCC|3,000|
|SHORNE PCC|20,000|
|SWANSCOMBE PCC|4,000|
|**TOTAL GRAVESEND DEANERY**|**260,264**|
|**ROCHESTER DEANERY**||
|BORSTAL PCC|18,191|
|CHATHAM ST MARY W ST JOHN PCC|1,635|
|CHATHAM ST PAUL W ALL SAINTS PCC|20,980|
|CHATHAM ST PHILIP & ST JAMES PCC|66,141|
|CHATHAM ST STEPHEN PCC|48,500|
|LUTON PCC|11,594|
|PRINCES PARK PCC|34,538|
|ROCHESTER ST JUSTUS PCC|31,787|
|ROCHESTER ST PETER W ST MARGARET PCC|47,206|
|SOUTH CHATHAM HOLY TRINITY PCC|55,758|
|**TOTAL ROCHESTER DEANERY**|**336,330**|
|**STROOD DEANERY**||
|CLIFFE-AT-HOO W COOLING PCC|36,578|
|CUXTON & HALLING PCC|21,287|
|FRINDSBURY W UPNOR & CHATTENDEN PCC|52,000|
|GRAIN PCC|2,737|
|STOKE PCC|2,737|
|HIGH HALSTOW W ALLHALLOWS & HOO ST MARY PCC|27,000|
|HIGHAM W MERSTON PCC|52,966|
|HOO ST WERBURGH PCC|15,638|
|STROOD ST FRANCIS PCC|17,170|
|STROOD ST NICHOLAS W ST MARY PCC|57,260|
|**TOTAL STROOD DEANERY**|**285,373**|
|**TOTAL ROCHESTER**|**1,781,729**|
|**PADDOCK WOOD**||
|BRENCHLEY PCC|49,400|
|EAST PECKHAM PCC|25,993|
|HADLOW PCC|43,200|
|HORSMONDEN PCC|38,584|
|LAMBERHURST PCC|31,770|
|MATFIELD PCC|23,000|
|PADDOCK WOOD PCC|58,340|
|PEMBURY PCC|56,364|
|CAPEL UNITIED BENEFICE|34,080|
|YALDING PCC|37,691|
|COLLIER STREET PCC|4,658|
|**TOTAL PADDOCK WOOD DEANERY**|**403,080**|
82
## **PARISH OFFERS RECEIVED BY PARISH**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
## **MALLING DEANERY**
|**MALLING DEANERY**||
|---|---|
|ADDINGTON PCC - BART GROUP|17,000|
|BIRLING PCC|10,379|
|RYARSH PCC|15,750|
|TROTTISCLIFFE PCC|13,069|
|AYLESFORD PCC|44,126|
|BARMING PCC|59,530|
|BURHAM & WOULDHAM PCC|10,510|
|COXHEATH PCC|11,702|
|EAST FARLEIGH PCC|10,998|
|HUNTON PCC|10,998|
|LINTON PCC|10,998|
|WEST FARLEIGH PCC|10,998|
|DITTON PCC|55,915|
|EAST MALLING PCC|25,809|
|TESTON PCC|2,000|
|WATERINGBURY PCC|5,436|
|LARKFIELD PCC|2,400|
|LEYBOURNE PCC|44,000|
|MEREWORTH PCC|13,000|
|WEST PECKHAM PCC|8,013|
|SNODLAND W LOWER BIRLING PCC|32,717|
|WEST MALLING PCC|29,812|
|KINGS HILL|3,600|
|OFFHAM PCC|17,676|
|**TOTAL MALLING DEANERY**|**466,436**|
## **SEVENOAKS DEANERY**
|**SEVENOAKS DEANERY**||
|---|---|
|BRASTED PCC|21,525|
|CHEVENING PCC|64,750|
|KIPPINGTON PCC|69,550|
|KNOCKHOLT PCC|24,697|
|HALSTEAD PCC|31,742|
|RIVERHEAD W DUNTON GREEN PCC|48,878|
|SEAL ST LAWRENCE PCC|21,120|
|UNDERRIVER PCC|18,000|
|SEAL ST PETER & ST PAUL PCC|50,683|
|SEVENOAKS ST JOHN THE BAPTIST PCC|49,500|
|SEVENOAKS ST LUKE PCC|43,500|
|SEVENOAKS ST NICHOLAS PCC|188,142|
|SUNDRIDGE W IDE HILL & TOYS HILL PCC|28,000|
|WEALD PCC|43,852|
|WESTERHAM PCC|50,988|
|**TOTAL SEVENOAKS DEANERY**|**754,927**|
|**SHOREHAM DEANERY**||
|BOROUGH GREEN PCC|43,938|
|EYNSFORD W FARNINGHAM W LULLINGSTONE PCC|65,815|
|IGHTHAM PCC|61,543|
|KEMSING W WOODLANDS PCC|46,805|
|KINGSDOWN W MAPPISCOMBE PCC|32,940|
|OTFORD PCC|64,988|
|PLATT PCC|45,038|
|PLAXTOL PCC|30,328|
|SHIPBOURNE PCC|30,328|
|SHOREHAM PCC|39,960|
|STANSTED W FAIRSEAT & VIGO PCC|21,583|
|WROTHAM PCC|32,841|
|**TOTAL SHOREHAM DEANERY**|**516,107**|
83
## **PARISH OFFERS RECEIVED BY PARISH**
## _For the year ended 31 December 2020_
This page does not form part of the audited financial statements
|**TONBRIDGE DEANERY**||
|---|---|
|CHIDDINGSTONE CAUSEWAY PCC|19,425|
|CHIDDINGSTONE PCC|22,110|
|CROCKHAM HILL PCC|33,000|
|EDENBRIDGE PCC|52,000|
|HEVER PCC|8,691|
|FOUR ELMS PCC|6,504|
|MARKBEECH PCC|6,870|
|HILDENBOROUGH PCC|47,000|
|LEIGH PCC|50,747|
|PENSHURST PCC|41,520|
|FORDCOMBE PCC|15,271|
|TONBRIDGE ST PETER & ST PAUL PCC|112,000|
|TONBRIDGE ST STEPHEN PCC|87,046|
|**TOTAL TONBRIDGE DEANERY**|**502,184**|
|**TUNBRIDGE WELLS DEANERY**||
|LANGTON GREEN PCC|20,000|
|RUSTHALL PCC|61,000|
|SOUTHBOROUGH CHRIST CHURCH|62,468|
|SOUTHBOROUGH BIDBOROUGH W ST PETER|68,500|
|HIGH BROOMS|53,437|
|SOUTHBOROUGH ST THOMAS PCC|39,047|
|SPELDHURST PCC|76,185|
|TUNBRIDGE WELLS HOLY TRINITY W CHRIST CHURCH PCC|86,400|
|TUNBRIDGE WELLS KING CHARLES THE MARTYR PCC|75,840|
|TUNBRIDGE WELLS ST BARNABAS PCC|24,975|
|TUNBRIDGE WELLS ST JAMES PCC|76,000|
|TUNBRIDGE WELLS ST JOHN PCC|70,155|
|TUNBRIDGE WELLS ST LUKE PCC|54,000|
|TUNBRIDGE WELLS ST MARK PCC|20,000|
|TUNBRIDGE WELLS ST PETER PCC|45,000|
|TUNBRIDGE WELLS ST PHILIP PCC|46,500|
|**TOTAL TUNBRIDGE WELLS DEANERY**|**879,507**|
|**TOTAL TONBRIDGE**|**3,522,241**|
|**TOTAL ALL**|**8,373,578**|
|OFFER IN LIEU OF HOUSING|16,800|
|ADDITIONAL OFFER FOR PRIOR YEARS|4,200|
|**TOTAL AS PER STATEMENT OF FINANCIAL**|**8,394,578**|
|**ACTIVITIES**||
84
_Children in the Diocese of Mpwapwa, one of our four Companion Overseas Links_
85
Address RegisteRed ChaRity No. 249339. the RoChesteR dioCesaN soCiety aNd BoaRd of fiNaNCe is a CompaNy limited By guaRaNtee. RegisteRed iN eNglaNd No. 140656 Online www.rochester.anglican.org @CofERochester @SeeofRochester