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2023-12-31-accounts

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We are the Church of England operating in the Diocese of Rochester in the area of Medway, north and 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 211 parishes and 3 Bishops Mission Orders, 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 2023. 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

Directors and Members of the Bishop’s Council (Directors and Trustees): The Bishop of Rochester (Chair) The Rt Rev Dr Jonathan Gibbs The Bishop of Tonbridge - The Rt Rev Simon Burton-Jones The Chair of the Board of Finance - Canon Nigel Pope

Ex-officio:

The Archdeacon of Bromley & Bexley The Ven Katrina Barnes (appointed to 23/04/2023) The Ven Allie Kerr (appointed 23/4/2023) Archdeacon of Rochester The Ven Andrew Wooding Jones The Archdeacon of Tonbridge The Ven Sharon Copestake The Dean of Rochester 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 Jeremy Blunden 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:

Mr David Fitzpatrick Mr Philip French Mrs Cath Johnston Mr Jeremy King Mr Gerald O’Brien Mr Alan Strachan

The Rochester Diocesan Society and Board of Finance is a company Limited by Guarantee Registered Charity No. 249339 Registered in England No. 140656

Senior Staff:

Diocesan Secretary (and Company Secretary) Mr Matthew Girt Director of Finance – Rev Richard Williams (retired 4/1/2023) Director of Finance – Mr John Jackson (appointed 10/8/2023) Director of Property - Mr Stephen Hoad (resigned 21/6/2023) Director of Property - Ms Stephanie Shea (appointed 27/11/23, resigned 3/3/24) Director of Formation and Ministry - The Rev Canon Chris Dench (resigned 3/9/2023) Interim Director of Formation and Ministry, The Rev Canon Jane Winter (appointed 3/9/2023) Director of Diocesan Board of Education - Mr John Constanti Bishop’s Chaplain - The Rev Canon June Lawson (appointed 11/9/2023)

Advisors:

Auditors: Haysmacintyre LLP 10 Queen Street Place, London EC4R 1AG

Registrar: Mr Owen Carew-Jones (to 31/3/2023) Mrs Patti Russell (appointed 4/11/2023) 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

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CONTENTS

~~•~~ ABOUT US 1
• MESSAGES
o
Bishop Jonathan Gibbs, Bishop of Rochester		 3
o
Matthew Girt, Diocesan Secretary		 4
o
Canon Nigel Pope, Chair of the Board of Finance		 5 - 6
STRATEGIC REPORT
• Our vision and objectives 8 - 9
• Our story and progress in 2023 10
o
Enabling each church to be mission minded		 11-14
o
Helping children, young people and adults live out		 15 - 20
everyday faith in Jesus
o
Supporting loving service in local communities		 21 - 23
o
Speaking and responding to the prophetic voice of		 24 - 28
justice and peace
o
Protecting creation’s life for future generations		 29 - 31
• Our future plans 31 - 32
• Total income and expenditure 33
• Parish support costs 34
• FINANCIAL REVIEW 35 – 39
• RELATED PARTIES 40
• PRINCIPAL RISK AND UNCERTAINTIES 41 - 44
• FINANCIAL PERFORMANCE 45 – 47
• GOVERNANCE, STRUCTURE, AND MANAGEMENT 47 - 52
• STATEMENT OF TRUSTEES 52 - 53
• INDEPENDENT AUDITOR’S REPORT 54 - 57
• STATEMENT OF FINANCIAL ACTIVITIES 58
• BALANCE SHEET 59
• STATEMENT OF CASH FLOWS 60
• NOTES FOR THE FINANCIAL STATEMENTS 61 - 96

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A message from Bishop Jonathan

It is now nearly two years since I became the Bishop of Rochester. A great deal has happened in that time, and particularly over the last year.

I love travelling around the Diocese and seeing first hand all that is taking place. What has struck me most is the dedication of clergy and lay people alike in every corner of the Diocese to the worship of God, to the making of disciples and to service in and for our local communities.

As is reflected in this report, there is so much in which to rejoice, and for which to be encouraged. Yet at the same time, never in the forty years I have served in the Church of England have I known such a time of anxiety, uncertainty, and fear, both within the Church and in our wider world.

Given the challenges that we are facing, it would be tempting to feel overwhelmed and retreat into the comfort of doing ‘what we have always done’.

However, this is not the case here in Rochester Diocese. If anything, we have continued to build on our confidence in God and in one another, by beginning in earnest the work we need to ensure we have a flourishing and hopeful future.

One which is focused on seeking first the kingdom of God, and listening to how we are being guided by God in this task in the areas of Medway, north and west Kent, and the London Boroughs of Bromley and Bexley.

Indeed, I remain confident that the three themes that God laid on my heart as I was called to this ministry here in Rochester: Change, Serve, Grow, offer us a framework for addressing many of the huge challenges that our churches and communities are facing in fruitful and productive ways.

I am hugely grateful for all those who are supporting this vision across the Diocese, and who are faithfully seeking to be a sign to the world of a different way of being, demonstrating the life of the kingdom of God by the way we love one another, serve the people and communities around us, and together bring the hope of Christ to an often fearful and lost generation.

The Rt Rev Dr Jonathan Gibbs Bishop of Rochester

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A message from the Diocesan Secretary

With ambition and vision sums up 2023. As we moved from the year of transitions in 2022 to a year of delivery, or review and of planning and resource acquisition in 2023 and forward into 2024.

2023 has seen us engage on what a vision for the future should look like, and the plan needed to bring it about. Keeping our eyes set on ‘seeking first the Kingdom of God’, we have analysed the data we have on missional and ministry health and viability across the diocese, using funds secured in 2022, to build a stronger picture of what a sustainable and growing diocese will look like.

Direct investment of externally secured resources to complement those hard given resources at a parish level, and diocesan investment fund returns, has seen projects across the diocese benefit, whether that be for work to buildings, or missional projects.

Using this work, the year has also seen us look at and review the successful work of the Formation and Ministry team, and with the Children and Young People team, joining them in the new Mission and Ministry Development Team with a focus on developing missional leaders, lay and ordained.

As I have spoken to many people across the diocese during the year, I have a sense of both the strain that many have been under, but also now the looking forward with new energy and hope. The staff team at Diocesan Office see themselves as supports for all the work and ambition that exists in the hearts and actions locally in parishes. We remain committed to serving, to increasing the service, and improving what we do wherever possible.

I would like to thank my colleagues in the staff team at Diocesan Office for their dedication, and joy in serving. As you will see from the interview with Paul later on in this report, we are fortunate to have such positive and committed team members who look to support the success and challenges in parishes.

Whilst we do all of this, it is clear that without the work, funding, and commitment locally in parishes and chaplaincies, without the thousands and thousands of hours of volunteer time, the impact would be small.

I remain humbled and thankful to the many, many people who are looking to the future through their service now who are filled with that ambition and vision for God’s love to be seen and known,

Thank you for your partnership in the Gospel.

Matthew Girt

Diocesan Secretary

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A message from the Chair of the Board of Finance

Financially, 2023 was a mixed year for the Diocese. Our main source of income, parish offers, reduced by 2 per cent compared to 2022 which was disappointing – we had hoped for and budgeted for an increase of 4 percent.

Parish offers remain key to the financial sustainability of the Diocese going forward and we have started consultation within the Diocese on improvements that can be made to its communication and calculation.

It is a credit to the Diocesan team that, despite the lower than hoped for parish offers, overall, our operating deficit in 2023 was contained within budget with tight cost control and maximizing income from our assets and grant income.

Our investment portfolio performed well in 2023 with an overall total return of nearly 20 per cent. The most significant contribution to this was the sale at auction of our largest property asset, the Upper Beckenham estate, realising a surplus of £3m. This was an exceptional result. The surplus enabled Unapplied Total Return (see note 23) at the year end to increase by nearly £3m. Under Total Return Accounting, which the Diocese adopted in 2022, this will be available for investment into parish ministry and mission and growth in the Diocese going forward.

I will be stepping down as Chair of the Board of Finance in June 2024 after five years. Financially for the Diocese, the last five years have been a challenging time. As I look back, there are however, many positive aspects. A few that stand out for me are:

Looking forward, while growing parish offers remains key, I feel strongly that it is time for the very significant funds held by the Church Commissioners to be shared with Dioceses in a fairer way.

There is a review being carried out of the financial position of dioceses across England and the fairness of the current grant and cost allocation position from the Church Commissioners and I believe Rochester Diocese ought to be a significant beneficiary of that review; there are also moves to petition for significant funds held by the Church Commissioners to be transferred to Dioceses to strengthen their financial position which I would certainly support.

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We have a very strong Diocesan team full of exceptional people who are led very well by Matthew Girt, and I have very much enjoyed working with him. We have a fantastic finance team too and are blessed with many dedicated and skilled volunteers who serve on our financial committees - I have very much appreciated their skill and dedication. It has been a privilege to serve God as Chair of the Board of Finance and it has been great to see the many ways that God is blessing us with across the Diocese. I will of course continue to worship in the Diocese and look forward to seeing the fruits of our mission as together we seek first the Kingdom of God.

Canon Nigel Pope Chair of the Diocesan Board of Finance

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STRATEGIC REPORT

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Our vision and objectives

This year, Bishop Jonathan has continued to lead the development and evolution of our shared Called Together vision around the three key themes of Change, Serve, Grow.

These three words were ‘placed upon his heart’ when he joined us as the new Bishop of Rochester in 2022.

Much work has taken place throughout this year to understand what these three themes mean for the life of the Diocese and our priorities, and to define what and where resources will need to be allocated to deliver them.

Through prayerful engagement and discernment, what has begun to emerge is an understanding that we are a community seeking first the Kingdom of God.

It is with compassion, courage and creativity that we are called together by God to Change, Serve and Grow, and that within this overall vision, our key objectives are to grow missional churches, missional leaders and missional disciples that are themselves:

This is the latest phase in developing our strategic plans, which is vital to our hope and belief in a sustainable future for the Church across the areas of Medway, north and west Kent, and the London Boroughs of Bromley and Bexley.

To help us move work on our vision and priorities forward, we applied for and were successful in being granted a total of £714,130, which will be received over three years, from the national church. The funding is aimed at increasing our capacity to help us develop our vision and strategic plan.

Capacity will be increased to serve parishes in the areas of the Archdeacons, Property, Fundraising, Communications and HR, so work on the vision can continue as well as offering direct support to parishes.

Alongside this developmental work, diocesan support teams have continued to work with church leaders and parishes in support of our current five priorities of

Enabling each church to be mission minded

Helping resource parishes to understand their community and to build assurance in people that

they can tell their own story of God’s love in Christ; that there is a time and a place to share this with others.

Helping children, young people and adults live out everyday faith in Jesus

Whether a person is drawn to lay or ordained ministry in the Church, or is called to living out

their faith right where they are.

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Supporting loving service in local communities

Understanding that our mission is to the whole person and every initiative to meet human need is a sign of the coming kingdom of God.

Speaking and responding to the prophetic voice of justice and peace

To speak up for justice, to speak up for peace, and to be open to hear the prophetic voice

ourselves, for the Church has much it needs to put right.

Protecting creation’s life for future generations

As part of our prophetic calling, we commit to speak about our role in caring for God’s creation, to work for the protection of the natural world and to equip Christians and churches to care for

it.

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OURSTORY AND PROGRESS IN 2023

Enabling each church to be mission minded

To help resource parishes to understand their community and to build assurance in people that they can tell their own story of God’s love in Christ; that there is a time and a place to share this with others.

Funding missional buildings

Church buildings can often be one of the most visible signs of a Christian presence in a community. Not only are they places of worship and fellowship, but they also offer a wonderful opportunity for mission and outreach

For many churches, however, the care and maintenance of their buildings, while a privilege, is also a challenge both in terms of time, finance, and their ability to offer welcome to worshippers and visitors alike.

To help, Diocesan support teams have continued to work hard to secure external funding to boost the support available to parishes in relation to church buildings.

This is in addition to the Common Fund – the shared pot of money paid into by parishes - which remains the main source of income to support mission and ministry across the Diocese.

In 2023, colleagues were successful in obtaining just over £285,000 in external funding to support churches with their buildings. The external funding raised this year means that, since 2018, support from the Diocesan Office has drawn in over £8 million of external funding to directly support mission and ministry across all areas of the Diocese at parish level.

Attracting funding like this is great news, not just for the local churches affected, but the whole diocesan family. This is because it demonstrates to potential future donors what the Church can achieve, as well as our proven track record in partnership working.

ST JOHN’S CHATHAM - £2.3 million from the National Lottery Heritage Fund for capital works and an innovative community programme was the latest exciting step for the reopened St John’s, Chatham this year.

A church that until 2017 had stood closed for around 25 years, St John’s is now open and engaging in transformative outreach into the community; it’s very much at the heart of the wider plan and vision for growth and outreach across the Diocese.

A partnership with The Church Army – a national Christian organisation committed to tackling social deprivation, and ensuring everyone has an opportunity to encounter God – is also crucial to the regeneration and growth taking place at St John’s, Chatham. Key projects include Medway Oaks, a drop in church on Sunday afternoons for over 18s, and an expanding programme of children and family outreach. Increasing numbers of lives are being changed by knowledge of God’s love and grace, and an encounter with Jesus through the outreach work. For instance, last September there were 10 baptisms and reaffirmations of baptismal vows, 8 of which came out of initiatives run by Church Army.

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Caring for church buildings

The care and maintenance of our church buildings, their contents, and churchyards, is vitally important now, and for future growth, outreach and mission.

Advice and support for parishes in this area is provided by the Diocesan Advisory Committee for the Care of Churches (DAC)

To increase the support and expertise available to parishes going forward, the Diocese has been awarded:

Sitting alongside our existing dedicated but small church buildings support team, this additional officer and grant capacity will make a real difference in helping churches manage this responsibility.

Missional Property Fund

The Missional Property Fund was established in 2018 with the primary aim to support projects which allow parishes to open-up their church buildings for mission and welcome.

The Fund is made possible by generous support from Marshalls Charity, which confirmed this year it would be committing a further £97,500 into the Missional Property Fund in 2024/25. In 2023, 28 applications were received. Thirteen of these were funded to a total of £105,500.

Photo: St, Mildred Church, Nurstead had a faculty for a waterless composting toilet granted in March 2023. This enabled new toilet facilities to be created despite there being no water supply or drainage in the churchyard, and so improving the welcome and outreach the church can offer.

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Encouraging a culture of generosity

Generosity is rooted in our relationship with one another and with God. That generosity gives everyone an opportunity to share in the mission of Christ and the ministry which supports that mission.

The activity of the Diocese’s Generous Giving Adviser in 2023 has therefore focused on increasing giving in parishes by:

Parish Giving Scheme

The Parish Giving Scheme (PGS) is an established service for managing One-Off and Direct Debit giving, designed to support churches to fund their mission and ministry. It reduces the burden of work on church volunteers and provides a simple and secure service to givers.

Digital Giving

Online and contactless forms of giving have also seen substantial growth in both the number of active accounts and the funds flowing through them

Forty-five percent of parishes in the Diocese have an active digital account. That is up from 33 per cent of parishes in 2022.

Preaching Generosity

This is an ongoing project to encourage church leaders, and all those with a preaching ministry, to talk about generosity.

Each week, a short sermon idea is drawn from one of that week’s Common Worship lectionary readings by a range of high calibre contributors.

It is reaching about 7,000 people weekly through Digest, the St Augustine’s College of Theology e-bulletin, and individual subscribers.

Thanks to continued effort and

encouragement, 50 parishes are now signed up to the scheme, with the average gift (including Gift Aid) being £21.72 per week.

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Flourishing overseas links

Our diocese enjoys overseas links with the Anglican dioceses of Harare in Zimbabwe, and Kondoa and Mpwapwa in Tanzania. It has a similar, flourishing partnership with the Evangelical Lutheran Church of Estonia. to learn about each other’s history and tradition,

These links have continued to thrive throughout the year in various ways, whether through visits, or WhatsApp groups and regular Zoom meetings.

New connections have been made with St James School at Grain developing a link with St Peter and St Paul school in Kondoa. The chairs of the Estonia group have now been taken up by Jess Heeb and Laurence Powell.

In August, Bishop Jonathan also paid his first visit to Tanzania as Diocesan Bishop. As part of his visit, he attended the enthronement of the new bishop of Mpwapwa, visited a range of sustainability projects, as well as enjoying hospitality, friendship, and taking part in the spiritual life of the Church there.

“It was a huge joy and privilege to visit our brothers and sisters in Kondoa and Mpwapwa. The visit helped me to appreciate more fully the amazing work that is being done by our partners there as well as the importance of the partnership for us as well as for them. I pray that this will help to strengthen our bonds and our cooperation in the years to come.”

Bishop Jonathan Gibbs, Bishop of Rochester

Ongoing parish Support

Money from the Common Fund pays for the central services provided by Diocesan Office colleagues to help parishes maintain and grow their presence in the community, as well as meet their statutory responsibilities.

The fact that these are managed by the modest level of staffing within the Diocesan support teams, a level that has remained consistent since 2019, even with the increasing costs of statutory and safeguarding responsibilities, is a testament to the quality of the people employed and the amount of effort which they put into their roles every day.

As the diocesan vision continues to evolve, data from resources like the Statistics for Mission and the Archdeacons Articles of Enquiry are being used to help inform what additional support is needed, and to developing funding bids as appropriate.

Photo: Bishop Jonathan takes part in a confirmation service in Kondoa

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Helping children, young people and adults live out everyday faith in Jesus

whether a person is drawn to lay or ordained ministry in the Church, or is called to living out their faith right where they are.

Growing missional leaders

Seventeen men and women were ordained priest or deacon at Rochester Cathedral in September 2023.

For the nine deacons, it was the fruition of many years of exploration, discernment, and training.

From a qualified rugby referee and a professional musician to a former journalist and mental health care professional, each of our deacons brings with them a diverse range of skills and experiences.

“This year’s cohort of ordinands are a wonderful group of people who give great hope for the future of the church. As Director of Ordinands, along with Assistant DDOs and Vocation Advisers, it has been a privilege to accompany them through this part of the journey. “

The Rev Canon Pamela Ive, Diocesan Director of Ordinands and Vocations.

ENCOURAGING CALLING “God has

bestowed gifts on each and every one of us. Whether you are frontline staff, a teacher, a doctor, an engineer. God has plans for you. I would encourage everyone to think about what that plan might be for them.”

The Rev Rob Byrne, Deacon

The service was livestreamed to allow the whole diocesan family and the wider community to be part of this significant event in the life of the diocese. A social media campaign also shared the stories of the candidates with an invitation for others to consider how God may be calling them.

Eight people came forward for ordination in 2023 compared to seven in 2022.

During the year, four It’s Your Calling days were held, offering people an opportunity to explore God’s plan for them. This year saw a pleasing increase in the numbers attend from before the pandemic:

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It has been a wonderful year too for celebrating lay ministry in the Diocese, affirming the diverse ways God is calling people across the Diocese.

Rochester Cathedral was the setting for the licensing of 12 people as Licensed Lay Ministers in June - a distinctive role in the Diocese for someone called to serve their Church and their community in a leadership role but not to be ordained.

In May we also saw the licensing and commissioning of 12 Children, Young People, and Family Workers whose roles covered a breadth of knowledge, experience and expertise, but most importantly, dedication to serving their local communities, especially those in the younger age ranges.

In addition, five new Anna Chaplains were commissioned by Bishop Jonathan, a pioneering ministry in the Diocese to ensure the pastoral and spiritual needs of older people, and those with dementia, are met.

Nine students also received their Bishop’s Certificate. This qualification is open to anyone who has an active involvement in their local church and who wishes to gain knowledge and skills to give a firm foundation to their Christian life and service. It can be the start of a journey towards licensed lay ministry

Photo : In May, twelve new Lay Ministers were license in a service held in Rochester Cathedral.

The Lay Ministry Formation Programme was given an overall rating of 'Confidence' – the highest grading possible. Read the report

‘Rochester continues to provide the highest quality formation for our lay ministers and the lay ministers are evidence of this in the ministry and mission they engage with across our parishes and local communities.

Canon Jane Winter, Interim Director of Mission and Ministry Development

Outstanding training review

Licensed Lay Ministry (LLM) formation is part of a wider programme of vocational discernment and formation for lay ministers.

This year, the Lay Ministry Formation programme received an outstanding review from the National Church’s Ministry Development Team.

The aim of the review is to provide an external check of each training body against national standards and expectations for ministerial training and formation.

The recommendations in the report will help us continue to shape the lay ministry programme and the delivery of teaching as we move forward, growing the church to respond to a changing culture, and sharing the good news of Jesus Christ in diverse ways.

Bishops Certificate

In September 2023 seven people started the Bishops Certificate programme and nine continued into year 2, four of whom will be Licensed as Lay Ministers in 2024.

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In June 2023, seven people were candidated for Licensed Lay Ministry, and will be licensed in 2025.

We have candidates who are developing ministries with older people, in evangelism and chaplaincy.

Students continue to enjoy the learning environment of St Benedict’s Centre and are grateful for the prayerful support of the Sisters living in the Benedictine community at the Abbey.

Affirming everyone’s calling

We continue to find opportunities to encourage all people to recognise God’s calling in their daily lives.

Bishop Simon has continued to play a leading role in supporting this strand of our vision. He has conducted several anointing services in churches, where people are

invited to come forward, name their role in life, and receive a blessing and anointing with oil. These services seek to value and honour the different jobs and activities people undertake in their day to day, and symbolise the blessing God’s gives to them.

Our regular Everyday Faith section in the Diocesan magazine has highlighted the testimonies of a range of people, from a member of the Diocesan Finance Team, a gospel worship leader, to a young member of a church committed to the environment. These stories aim to encourage the reader to recognise their own God-given talents and gifts, and how they can be used a part of their Christian witness each and everyday.

YOUR WORK GLADDENS GOD

A chance email brought Paul Ogunlade to his new role as Financial Accountant in the Diocesan Office.

It’s just another example for Paul of a God who is directly involved in his daily life, and how for Christians, each day brings an opportunity to be an example of Christ’s love and peace to others. He says, “If you are a person of faith, I think the Holy Spirit is always opening up opportunities for us to live out our faith. Even getting this role I believe was guided by God.

“I think if you care about your work then God rejoices in that. If it gladdens you, it gladdens God too and amazing things can happen. “There was a time in a previous place of work where a colleague came up to me and said that she had noticed that I was always happy and smiling, and that I always seem focused on my work. She wanted to know what drove me.

“I explained that I had a source from where my happiness was derived, and that was Christ. That because of Christ, I knew that whatever was thrown at me, I could overcome it. I wasn’t looking to evangelise I was just minding my own business, but in that moment, she gave her life to Christ.

“I don’t think we as Christians always realise the impact we can have on the people around us, but we actually have chances every day to be an expression of God’s love.”

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Growing faith in children and young people

The Church nationally has committed to a bold aim to double the number of children and young active disciples in the Church of England by 2030.

As a Diocese we are equally ambitious to grow and nurture the presence of children and young people in our churches.

“One of my key priorities is to see more children and young people come to faith and to grow as disciples of Jesus Christ, and churches are at the forefront of this mission and ministry of the Church in this Diocese."

Bishop Jonathan Gibbs, Bishop of

The Children and Young People Team continue to encourage and support our churches in this area of their mission and outreach.

A particular focus of the Children and Young People Team has therefore been to provide opportunities to younger members to play a more active role in the leadership of not only their own churches but the Diocesan decision-making processes as well.

As part of this, a reconvening and reinvigorating of the Diocesan Youth Council has been underway, starting with a residential which saw 16 young people plus leaders attend Kingswood Centre to explore the theme of Peter the Rock and building on a solid foundation. Several meetings have taken place online and some of the young people helped as young leaders at the Cathedral Christingle service.

Diocesan Youth Council members have also attended Diocesan Synod, and several parishes have, or are setting up, their own children/young people’s councils at parish level which is exciting.

Photo : JAM (Jesus And Me) at St George’s Gravesend is an intergenerational service where families come together for worship. It continues to thrive since starting in Covid.

There has also been a focus on supporting churches to explore admitting children to communion. Three services have taken place where children have been admitted to communion, with advisory support from the Diocesan team beforehand.

The team has been encouraged to see more and more parishes becoming interested in this ministry. They are also encouraged by the amount of creativity among parishes for youth work.

For instance, one parish is piloting Bubble Church for under 7’s as a new worshipping community, and three new youth worship events called FUSE, were held as part of a joint venture with the Diocese of Canterbury.

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Deepening people’s relationship with God

A partnership between the Diocese’s Spirituality Network and the St Benedict’s Centre is creating more opportunities for people to explore and develop their spiritual lives.

During the year, the Spirituality Network moved from Chatham to the Centre in West Malling, which has allowed the Network’s programme of events to be included in the St Benedict’s bulletin and on their social media channels.

This has broadened the reach of the people seeing the range of events available and is starting to bear fruit, with a recent Away Day on how to meditate bringing together 30 people who were keen to learn about Christian Meditation.

There has also been an exciting development with a key Spirituality Network resource called The Prayer Pack. The pack seeks to provide inspiration to those searching for ways to pray that suit them by offering twelve fresh approaches to pray and is available online to download and print.

During the pandemic the Spirituality Network received an anonymous donation, and it was decided to use the donation to publish ‘The Prayer Pack’ in a different format.

Work during the year to turn the pack into a published book has gone well and the book will be available in May 2024 as part of the Diocese’s offering for the global prayer initiative, Thy Kingdom Come.

Sports and wellbeing

Sport is a big part of many people’s lives, and the Diocese believes that faith can and should be integrated with this.

To assist this work, Ian Simpson, a member of the Church of The Good Shepherd,

Borough Green, was appointed as the new Sports and Wellbeing Ambassador for the Diocese.

This is a voluntary role, which sees Ian help promote and develop the use of sport as a means of mission and ministry across the Diocese of Rochester.

“Sports and well-being activities draw people together and when people are together, there are opportunities to show the grace of Jesus and to show people our faith.”

Ian Simpson, Sports and Wellbeing Ambassador

From healthy walks and mobility exercise sessions to cycling groups and sports club chaplains, many churches across the Diocese are already exploring ways they can be a positive and encouraging presence in people’s sporting lives.

A Sports and Wellbeing Mission workshop run by Bishop Simon Burton-Jones, the Bishop of Tonbridge, in November, and hosted by St Gabriel’s Kings Hill, saw 13 churches represented.

It provided a great opportunity for those present to discuss what sports and wellbeing ministry is about, what is happening in churches already, and what churches would like to happen in the future.

Projects highlighted included Kick, a football initiative in Barming, and Sports chaplaincy in Kings Hill.

Throughout the year, various national days and occasions were also used as opportunities to encourage churches to think about how they could engage with people through sport and wellbeing.

Bishop Simon wrote a set of prayers to encourage churches and individuals to pray for those involved in sport and wellbeing activities.

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The National Sports and Wellbeing Project, which Rochester Diocese has been part of the since 2020, is now nearing completion with a report due to be published shortly. We are engaged with other dioceses to establish the best way to continue the national initiative and supportive relationships in the future.

Spirituality of older people

Anna Chaplaincy is a pioneering ministry in the Diocese aiming to equip churches to support older people and convey the message that people with dementia and their carers are welcome in our churches.

There are now over 30 church-based groups and activities aimed at people living with dementia and their carers across Rochester Diocese, most delivered with Anna Chaplaincy involvement.

There are also 70 Anna Chaplains and Anna Friends in the Diocese visiting seniors in their own homes and care homes, bringing spiritual care and a sense of belonging at a time of life when frailty can easily cut people off from church and community life.

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Supporting loving service in local communities

Understanding that our mission is to the whole person and every initiative to meet human need is a sign of the coming kingdom of God.

Warm Spaces

With the support of the Diocese’s Community Engagement and Social Action Adviser, churches across the diocese have been busy strengthening their outreach to their local communities.

As one of the ways to help address the costof-living crisis, many local churches offered warm spaces again this winter, both during the day and early evening, so that people from their local community could find sanctuary and hospitality in a safe warm place.

The provision varied depending on the church and the local community, but always focused on offering a safe place to keep warm, socialise, engage in an activity (board games, craft, quizzes, etc), as well as enjoy free refreshments.

A diocesan survey confirmed that guests who attended warm spaces mostly came from the local community and were a mix of single adults, families with children and pensioners.

The main social issues affecting warm spaces guests were loneliness, fuel poverty, food poverty and mental health. When necessary, guests were signposted to partners and other specialist agencies.

Warm spaces were supported by Dartford and Tonbridge and Malling Borough Councils who, following an evaluation report demonstrating the positive impact warm spaces offered in their respective boroughs during the winter of 2022, offered generous contributions of £6,000 and £3,500

Photo: Community Larder, St John, Beckenham

respectively to support local churches with warm spaces expenses.

Warm spaces across the diocese were also supported by some dedicated budget from the Community Engagement and Social Action Team.

The Diocese has been working in partnership with the Warm Welcome Network. This has included introducing a pilot with UK Power Network (UKPN)

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through raising awareness of the Priority Register. UKPN breakfast /lunch learning sessions will soon be offered by a few Warm Spaces and Community Hubs.

Community Hubs

Community hubs are about offering a holistic approach to the community in order to accompany guests and visitors on their journey on from a difficult matter or situation that they are facing.

Churches are very much engaged with this form of outreach, with the form they take varying across the diocese. They range from community cafes and community larders, to a community cupboard, fridge or independent foodbank.

The Community Hubs Leaders Network within the diocese is a growing and useful forum for learning and sharing experiences with others.

The network’s online meetings have taken on a new format and are proving a great platform for inviting guest speakers from partner agencies (Warm Welcome Network, UPPN, ACTS435), as well as a useful forum to learn about grant opportunities.

A face to face training session on Active Listening is planned for next July.

Partnership working

With community engagement and social action, partnerships are key.

A few of the partnership opportunities that have arisen over the year include:

Photo: The opening of the Community Fridge, St Paulinus Church, Crayford

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All have in their own way enriched the offer from churches and helped people in the community.

In addition, partnerships have been maintained on a strategic level with some of the local authorities, voluntary sector groups and other organisations, and our Community Engagement and Social Action Lead Adviser has encouraged parishes to explore setting up partnerships related to specific social issues.

Responding to poor mental health

Supporting those suffering from mental ill health remained a priority over the year.

Local churches continued to support members from their local community by offering specific activities that promote mental wellbeing, as well as by offering courses.

Christ Church Luton, began offering The Recovery Course in February. This 15-week course looking at addiction was well attended and is proving successful with local community members.

The Be Well Churches Project is in its early stages, and is an endeavour between Citizens UK and some churches in Bromley and Bexley who are seeking to promote better mental health and well-being for their community.

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Speaking and responding to the prophetic voice of justice and peace

To speak up for justice, to speak up for peace, and to be open to hear the prophetic voice ourselves, for the Church has much it needs to put right.

Safeguarding

As a Diocese we take our safeguarding responsibilities very seriously and we are committed to ensuring that our churches and buildings are safe places for all.

Alongside delivering a full and demanding programme of required safeguarding training, the Safeguarding Team has continued to handle an increasing workload of enquiries and case management, as well as carrying out clergy inductions, Parish Safeguarding Officer meetings, and DBS checks.

The safeguarding pages of the diocesan website are regularly checked and reviewed to ensure they contain up to date information, as well as accessible and appropriate material for a range of users, including children and young people, adults, and parish officers.

This year, a new page for victims and survivors of abuse, outlining the various ways the diocesan team and other agencies can support them, was created as part of our commitment to keeping victims and survivors at the heart of what we do.

Safeguarding Sunday

There are many people working hard across the Diocese to help keep everyone safe. They are doing things like being careful about who undertakes a role in a church or at a church activity, learning how to work in the safest way possible, or stepping up to be Parish Safeguarding Officer.

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For these things to work, however, there needs to be a good culture - a safe and healthy culture, and that’s where each and every person can make a difference.

To support this, over the last few years, the Diocesan Safeguarding Team has encouraged churches to take part in Safeguarding Sunday.

Organised by the Christian charity, Thirtyone:eight, Safeguarding Sunday, offers an opportunity each November – or at any time convenient - for churches to highlight and give thanks for all the work being undertaken to help keep people safe.

“I am delighted to see not just the level of response, but also the many different and creative ways churches within the Diocese have engaged with Safeguarding Sunday this year. This can only be a positive sign of how awareness and culture around safeguarding is changing across the Church.”

Archdeacon Andy Wooding Jones, Bishop’s Lead for Safeguarding

The Diocesan Safeguarding Team was also busy, with Greg Barry, Lead Diocesan Safeguarding Adviser, invited to St Peter’s Bexleyheath to talk about his role and the importance of safeguarding.

It’s also a chance for churches to remind congregations and the wider community, that safeguarding is everyone’s responsibility and that we all have a part to play in creating healthy, safer cultures.

The church is now in the process of refreshing all of their display materials and resources to include child friendly support and guidance for adult support locally and nationally.

This year saw a significant increase in the number of churches across the Diocese getting involved, and in creative ways, including sketches, talks, and videos

Many Parish Safeguarding Officers (PSO) took the opportunity to talk to their church congregations about their roles and how people could support them.

Photo: Roarry the Thirtyone:eight Safeguarding Sunday lion, makes a special visit to Rochester Cathedral’s Sunday Club

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Domestic abuse and gender-based violence

Awareness-raising around the issue domestic abuse and gender-based violence has continued this year.

In support of the UN’s 16 Days of Activism Against Gender-Based violence, material from a range of Domestic Abuse charities was shared on diocesan social media channels and as well as in diocesan newsletters.

The Mother’s Union’s new RISE UP campaign to raise awareness about domestic abuse, was also promoted among churches and diocesan office colleagues.

Photo: Bishop Simon visits the Kent-based Protection Against Stalking Team

As a further sign of the commitment to improving awareness and response to the issue, the Diocesan Office signed up to EIDA, which was shared with colleagues.

In addition, the Diocese actively supported The White Ribbon Campaign’s White Ribbon Day. Although aware that domestic abuse can happen within all kinds of relationships, the campaign particularly focuses on men by encouraging them to promise not to use, excuse, or remain silent about men's violence against women.

From Lament to Action (FLTA) is a national report of the Archbishops’ Anti-Racism Taskforce first published in 2021.

Calling out institutional racism within the Church, it proposes a suite of changes to begin bringing about a change of culture in the life of the Church of England.

A working group was set up in the Diocese to respond to the report and they have now produced an action plan. Among the key actions identified are:

As part of our support for these campaigns, Bishop Simon prepared a set of prayers about the issue of domestic abuse and gender-based violence, as an ongoing resource for churches.

Racial Justice

Racial justice work is progressing in the Diocese and remains a key area of work, which we know we need to do more on to help understanding about this area of justice.

The role of the Rev Jeremy Blunden, Bishop’s Advisor for UKME and Global Majority Heritage matters was broadened this year to take into account the From Lament to Action report.

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To support this work, we are in the process of recruiting a Racial Justice Officer to help drive our work in this area of justice forward.

We have also been working on addressing recruitment and historic and current underrepresentation of UKME/GMH colleagues, particularly within senior leadership posts.

This year the Diocese initiated use of a positive action statement in order to attract UKME/GMH candidates in its recruitment process.

Photo: Diocesan Office colleagues crocheted purple hearts in support of the Mothers’ Union RISEUp domestic abuse awareness campaign.

The Diocese is also heavily invested in the Bishop Wilfred Wood Leadership Programme, with our Bishop’s Advisor for UKME/GMH Affairs one of the organisers of the programme.

This strategic leadership programme is aimed at addressing such historic and current underrepresentation, particularly within senior leadership posts.

Over the course of a year a programme of professional and personal development will seek to refine, promote and nurture amongst GMH priests the skills, confidence, experience and knowledge base needed to serve in senior roles.

The Bishop’s Leadership Team also spent a fruitful time during its annual residential watching, discussing and reflecting upon the documentary , After the Flood .

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This film, produced by the Church of England’s Racial Justice Network, explores the national church’s historic links to transatlantic chattel slavery.

The leadership team were indebted to the Rev Jeremy Blunden, Bishop’s Adviser for UKME/GMH Matters, for his openness and vulnerability in sharing and facilitating their time of reflection upon the film.

Poverty and Hope Appeal

Along with its links to Companion Dioceses in Estonia, Tanzania and Zimbabwe, the Diocese continues to demonstrate global responsibility and share God’s blessings through its Poverty and Hope Appeal.

There have been two important and encouraging new developments in 2023. First, the three companion dioceses in Africa have benefitted from funding for small projects which commenced in October 2022 and are linked to irrigation and agricultural diversification.

This year these have literally been bearing fruit.

In Harare Diocese, a pilot bee keeping project in four parishes has had a first honey harvest, while in Tanzania the focus in Kondoa and Mpwapwa has been on improved irrigation and farming methods through training and the provision of equipment and small loans; land which was once barren is now yielding a variety of fruit and vegetables.

The second major step has been the new link established with Amos Trust, a small London-based Christian charity with a strong focus on justice and reconciliation in the Occupied Palestinian Territories.

Through Amos we will be supporting four local organisations providing training, support and hope in the Bethlehem area. Independently of our relationship, Amos has recently also been very successful in delivering emergency relief through its contacts in Gaza.

The Diocesan leadership is most grateful for the support of many parishes and individuals in the Diocese who have continued to donate between £20,000 and £25,000 a year to keep these efforts going.

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Protecting creation’s life for future generations

As part of our prophetic calling, we commit to speak about our role in caring for God’s creation, to work for the protection of the natural world and to equip Christians and churches to care for it.

Eco Churches

The diocesan support team continues to try and maximise its impact on this vital piece of work within existing limited resources.

The current approach is to focus on encouraging churches to consider signing up to the Eco Church initiative.

Many churches are working very hard to live out our Christian imperative to care of God’s creation, and we have been delighted to see the number signed up to the Eco Church plan growing. This year we were also delighted to see the first Gold Award achieved in the Diocese by The Holy Redeemer Church, Lamorbey.

A successful joint bid with Canterbury Diocese for £234,000 to the Church Commissioners’ Net Zero Carbon fund, means we will be able to finance a full-time role in each diocese to provide advice to parishes on their net zero work, as well as a shared role across both dioceses to maximise the learning across parishes.

It is hoped that these new colleagues will provide us and our parishes with much needed expertise in this area to help us focus, get to grips with our data, and plan our approach.

GOLD MEANS GOING GREEN: The Holy Redeemer Church in Lamorbey has become the first church within the Diocese to achieve Eco Church Gold status.

Far from the end of their environmental journey, they are keen that their next steps include sharing their learning with others.

The Rev Mell Jemmett, vicar of The Holy Redeemer says: “God’s calling

around the environment began with a building project at the church, but the work of the Spirit in the hearts of the people I serve shaped my ministry on this special Eco journey.”

She is clear that the church’s environmental work has very much been led by the passion and belief of a team of people within the congregation, which has gone on to inspire the whole community:

“The assessment team couldn’t believe we had 12 plus people, including me as Vicar, on the ‘Green Team’. It’s one of biggest teams they have ever seen.”

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Divestment

A decision by the Bishop’s Council this year regarding the management of the Diocese’s investments has seen the Diocese commit to having no direct investments in fossil fuels across its entire portfolio, now or in the future.

“Our Diocesan financial investments provide much needed income to support mission and ministry across the Diocese and will provide some of the funds needed to make energy efficiency improvements to our clergy housing which will help us reach the target of carbon net zero emissions.”

Matthew Girt, Diocesan Secretary

It also agreed to reduce indirect exposures to fossil fuels to levels of below 0.1% by the end of 2023 across the entire portfolio.

The Bishop’s Council confirmed that it would continue its investment in ‘positive impact’ renewable energy assets, such as solar / wind farms, and to providing capital to early-stage technology companies that support a sustainable transition.

Greening our clergy housing

As part of our journey towards Net Zero, our project surveying Energy Performance Certificates (EPC) to establish the energy efficiency or otherwise of all parsonages within the Diocese was completed in 2023. Once fully reviewed the information will be used to provide recommendations to improve efficiency.

Photo: The King’s Garden, a new community wildlife garden at St George’s Church, Sevenoaks Weald is about showcasing God’s creation.

An insulation ‘pilot’ scheme was also completed this year, with 15 properties benefitting from an upgrade to their insulation at a total cost of £30k.

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First and foremost, however, a clergy house is a home for the clergy person and their family.

‘’I have to say that, in the two and half years I've been here, I've found Rochester Diocese to have the most responsive and caring property department.”

Our Property and surveying team therefore works hard to ensure these houses are maintained to the best standard possible.

Feedback shows they are consistently providing an excellent and much appreciated service.

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Our future plans

As we move forward into 2024 and beyond, we are using the data capturing, capacity building, listening, and engagement we have been undertaking to understand and shape more fully what we believe God is calling us to as a Diocesan family here across Medway, north and west Kent, Bromley and Bexley.

What is clear is that we are ambitious and hope-filled for the people and places of the Diocese as, s eeking first the kingdom of God, we are called together by God to Change, Serve and Grow with compassion, courage and creativity.

We believe we are commissioned by Jesus to ‘Go and make disciples’, not just so that our churches can grow but so that people can discover and experience for themselves the fulness of life that Jesus came to bring.

It is clear from work done in recent years that change is needed to be able to grow, develop and deliver our work, and this includes the use of finances to bring us to a sustainable position, one which we are not yet at, even with the decreases we have achieved in operating deficit year on year.

A new Mission and Ministry plan

To help us realise our ambition, we are developing a new Mission and Ministry plan to enable strategic decisions and actions to be made about resources and deployment, with transparency and focus on our priorities.

Having a clear and defined plan will also allow us to attract external partnerships and funding.

We have identified several other key areas that require attention to help us develop

this plan, define our priorities, and to bring about the Kingdom of God.

They are:

Paramount to the success of our strategic work will be prayer, and our cultivating of healthy and safe cultures, good communications, good engagement.

It will also be dependent on how we engage together with the world around us in compassionate and prophetic action, how we relate to one another within the Church, including when we disagree strongly about issues that matter profoundly and personally to each of us, and how we continue to listen to what God is seeking for us.

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TOTAL INCOME AND EXPENDITURE

We are reliant on the generous giving of parishes, through their Parish Offers, into the Common Fund. This, together with DBF fees, represents a significant amount of our income. Income from parishes via the Parish Offer, however, continues to fall, with Offers received in 2023 £7.5m.

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PARISH SUPPORT COSTS

The ministry, mission, and services provided by the Common Fund are channelled in a purposeful way thanks to our shared Called Together vision. The table below shows how much it costs to provide clergy and central services support to parishes.

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FINANCIAL REVIEW

FINANCIAL SUSTAINABILITY

The DBF’s Financial Strategy is to achieve a financially sustainable position through growing the Common Fund by:

and diversity, different styles of church may be required.

By doing these things we underpin the Diocesan Strategy of Called Together, providing the finances to enable it come to fruition.

Parish offers have declined consistently over the last 10 years, falling from £9.34m in 2013 to £7.52m in 2023. Since 2020, costs have risen sharply, principally due to global instability. Together, these have put a strain on diocesan resources, but thanks to careful stewardship of our assets, significant success in raising external funds tight cost control and increases in asset values, we have been able to grow reserves from £78.03m to £80.83m over that same period.

The DBF recognises that the key to achieving financial sustainability is to grow the Common Fund so that it becomes selfsupporting at the operating level. To do this we need to nurture and sustain the parish structure of ministry, reimagining it where necessary. This includes the reinvigoration of established parish churches while also focusing on investing in fresh mission opportunities and the emerging church. We need to be able to invest in areas of new developments where the population is growing, and where due to cultural change

COMMON FUND AND INDICATIVE OFFERS

The Common Fund is the principal unrestricted fund of the DBF which deals with the general income and expenditure of our Diocese. In most charities it would be known as the General Fund. The term “Common Fund” reflects who we are – an interconnected family or fellowship of Christians dependent upon, supportive of and with a shared concern 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:

The present system of Indicative Offers for parishes was established in 2019 to provide a starting point for parishes as they consider their contribution to the Common Fund. Whilst retaining the voluntary nature of

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Parish Offers, the Indicative Offer enables parishes to assess their pledged offers against the total mission and ministry funding requirement of the whole Diocese.

During 2023 it was agreed that a review of the Offer system would be carried out, and this commenced in February 2024 with a series of consultation meetings to which PCC members from every parish in the diocese were invited.

maximum of £2.5m, is to be held in cash under the terms of the Cash Deposits Policy.

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 2023 yearend stood at £10.2m (2022: £6.5m) i.e. above the current policy level of minimum liquidity and cash reserves of £5.0m.

RESERVES POLICY

2024 BUDGET AND OUTLOOK FOR 2024

The RDSBF requires reserves to:

The budget for 2024 was built on an assumption that Parish Offers would be maintained at £8.0m. It is now clear that the recovery in parish offers is slower than was envisaged at the time the budget was set, and that for 2024 only marginal growth over the 2023 level of £7.5m is expected. Clearly this has the potential to negatively impact the 2024 operating result; nevertheless the management team intend to press ahead with planned investments in mission and ministry support as these are seen as critical for improving the DBF’s financial robustness.

LIQUIDITY POLICY

The RDSBF’s liquidity policy is 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. This comprises £2.0m for the purposes of working capital and a further £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 those funds. In addition, 10% to 15% of available funds for investment, subject to a

• fund recognised future infrastructure and strategic programmes which will require resources, such as changing the form of ministry and the deployment of clergy.

In order to cover such eventualities it is the RDSBF’s policy to maintain free reserves in excess of £5m.

Common Fund reserves at the year-end stood at £1.7m (2022: £2.6m). This is due to the operating deficit in 2023 of £1.8m, revaluations of investments of £0.6m and transfers from other funds (including total return) of £0.3m. This is £3.3m below the policy amount.

In May 2022, Bishop’s Council approved a Total Return approach to the accounting for permanent endowments applied to the Diocesan Stipends Fund. This took effect from 1 January 2022. At the year-end, Unapplied Total return, excluding the £3.4m attributable to operational ministry

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properties, amounted to £12.3m (2022: £9.7m). Note 23 to the accounts provides further details on the calculation and application of the Total Return in the year.

DESIGNATED RESERVES

The Trustees may designate unrestricted reserves to be retained for an agreed purpose. 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 designation. A description of each reserve together with its intended use is set out in Note 16. Total designated reserves at 31 December 2023 were £9.2m (2022: £9.1m). These reserves are predominantly held in property assets.

generating income with the need to preserve and grow the capital value of the funds.

The investment policy for long-term funds is aimed primarily at generating a sustainable income and capital return but with due regard to 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 managed funds comprising listed and unlisted equities and funds and fixed interest bonds.

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

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 in accordance with the terms of the fund. Total restricted funds at 31 December 2023 were £41.5m (2022: £40.9m), and total endowment funds were £28.4m (2022: £25.1m).

INVESTMENT POLICY

The Board’s investment policy is based on the two key principles of Preserving Intergenerational 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 an investment approach which balances the necessity of

RDSBF follows the guidance of the Ethical Advisory Group of the National Investing Bodies of the Church of England. 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.

During the year, RSDBF has disinvested entirely in fossil fuels as a response to the growing challenge of climate change.

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

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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 sub-managers. The current portfolio includes allocations in a broad range of asset classes.

PROPERTY

The RDSBF owns three categories of property: glebe investments (land and buildings forming part of the diocese’s historic endowment); clergy houses; and RDSBF owned corporate property held for operational purposes.

The RDSBF will consider the disposal of property for the following reasons:

GRANT MAKING POLICY

The Memorandum of Association of the RDSBF explicitly permits the RDSBF to make grants in pursuance of its objects. Details of grants made in 2023 are shown in Notes 6 and 8.

Grants are made to the National Church to cover a proportion of its central costs including training for ministry (see Note 6).

RSDBF operates a Missional Property Fund to support projects which enable parishes to make their church buildings more suitable for mission.

CLERGY HOUSES STRATEGY

Grants are paid to other connected charities and to other charitable projects which RDSBF considers align with its own charitable objects. Grants are made to our Companion Dioceses of Mpwapwa and Kondoa in Tanzania and Harare in Zimbabwe from monies collected by church congregations and from other restricted donations, as well as to support links with the Evangelical Lutheran Diocese of Estonia.

The RDSBF set up an Energy Costs Support Fund in 2022 to support parishes with increasing energy prices. Two rounds of hardship grants were made to members of clergy experiencing hardship because of the cost of living crisis in 2022 and a further round was made in 2023.

Inspired by the Called Together vision, RDSBF operates a Clergy Houses Strategy which sets out the Clergy Houses Committee’s approach to clergy housing for the coming years. Clergy houses play a vital role in clergy wellbeing, and are often focal points for the church and local community.

Key objectives over the coming years are that clergy housing should:

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• 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 18). 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.

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.

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.

The Generous Giving Adviser continues to run stewardship programmes and provides materials to help parishes raise income levels.

Parishes are encouraged to take advantage of the various central purchasing schemes run by the National Church.

FUNDRAISING

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 it does, it will always ensure there is an appropriate contract in place. We have not received any complaints about our fundraising practices in the year.

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.

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RELATED PARTIES

Related parties include:

and the Bishop of Tonbridge serves as Chair. The RDSBF undertakes the accounting function for the Board of Education under a service level agreement.

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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PRINCIPAL RISKS AND UNCERTAINTIES

BISHOP’S COUNCIL RESPONSIBILITY

Bishop’s Council 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).

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 below.

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 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.

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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 AREA
•
Safeguarding. The reporting of non-recent
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.
•
Capacity of Diocese to respond to current
safeguarding concerns, and/or to continue
to develop safeguarding practice.		 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, including increase of
staff time and the appointment of a
Safeguarding Trainer in 2022.
•
Team supervision in place and reduction of
Cathedral commitments for the Lead DSA
has released time and increased
investment required by the DBF.
•
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.

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•
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.
•
LLF and other 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.		 •
Adoption of Parish Safeguarding
Dashboards ensuring parishes have
adequate level of safeguards in place.
•
Diocesan Safeguarding Advisory Panel
(DSAP), which is independently chaired,
maintaining strategic oversight including
monitoring of safeguarding action plan.
•
New website increasing accessibility and
visibility both internally and externally.
•
Strategic Framework, Called Together,
applied. New strategy and operational
plan of resource allocation begun with the
new Bishop in 2023. 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.
•
Developing plans for investment in parish
system through Total Return and larger
investment from Church Commissioners.
•
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.

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•
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.		 •
Financial Strategy that sets out the
approach to achieve a financially
sustainable position, regular financial
planning and budgetary control.
•
Implementation of Total Return to enable
investment.
•
2024 review of Parish Offers.
•
Development of new Budget and 5-Year
Projections by new Finance Director.
•
Aiming to continue to increase Parish Offer
payments and improvement of
communications on the Common Fund
purpose.
•
Working to increase grant income from the
NCIs.
•
Implementation of upgraded Network
infrastructure with enhanced endpoint, AV
and VPN elements of the network
architecture.
•
Update of security and network policies.
•
Appointment of new IT Manager in 2023
and security review undertaken.
•
Higher level of wifi security in place.
•
Software upgrades for MS Business
Premium, including implementation of
increased factor authentication.
•
Implementation of closer management of
Node 4, who maintain the Cloud network.

During 2023 a fundamental review of the Risk Register commenced and is continuing into 2024. This is taking in a review of the method of assessing and measuring the severity of an individual risk, as well as revisiting the risks themselves to ensure that they remain complete and relevant. This review is expected to be complete by the early summer of 2024 and the results will be incorporated into the risk register at that point.

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FINANCIAL PERFORMANCE – INCOME AND EXPENDITURE

equivalent clergy in post fell from 174 to 168.

The Statement of Financial Activities shows an overall net surplus before revaluation of fixed assets and movement in pension scheme liabilities of £3.3m (2022: deficit £4.6m). The net surplus after revaluations was £3.2m (2022: deficit £4.5m).

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 6 to the financial statements).

The Common Fund shows an operating deficit for the year of £1.8m (2022: £2.1m), and a negative net movement in funds after revaluations and transfers of £0.9m (2022: £2.5m). Despite a relatively poor performance on Parish Offer, the Common Fund result was boosted by a £300k sustainability grant from the Church Commissioners and tight cost control.

Income from parishes via the Parish Offer continues to fall. In 2019, Offers received were £9.1m, compared to £7.5m in 2023. This represents a significant diminution of RSDBF’s income, made even more serious when the high levels of inflation experienced in 2022 and 2023 are taken into account. (It should be noted that in 2020 the DBF started collecting its share of PCC fees, which until 2019 it had allowed parishes to retain.)

Property rental income also ended the year lower than budgeted, due to the sale of the Upper Beckenham estate mid-way through the year, which realised £7.88m.

95 grants totalling £29k (2022: £64k) were made to members of clergy experiencing hardship as a result of the cost of living crisis.

INVESTMENT INCOME

Market investments held at 31 December 2023 were £21.7m (2022 £17.4m) and investment properties were valued at £7.5m (2022: £11.9m) (see Note 10). Dividends receivable by the Common Fund were £438k (2022: £522k) and rents receivable by the Common Fund were £1.0m (2022: £1.06m).

The investments held and their return during the year is set out in the table below which shows an overall net income yield on investments of 3.0% (2022: 3.0%) and total return of 19.7% (2022: -5.7%). The total return on Glebe investment properties, part of the overall investment portfolio, was 37% which was generated mainly from a £3m gain on the sale of the Upper Beckenham estate.

Total expenditure from the Common Fund was £12.1m (2022: £12.0m) and from all funds was £14.1m (2022: £13.7m).

During the year, the RDSBF paid stipends and associated costs totalling £6.4m (2022: £6.6m) for incumbents, curates and other clergy. The total number of full-time

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At
31/12/23
£k		 At
31/12/22
£k		 2023
%		 2022
%		 2023
Income
Yield		 2022
Income
Yield		 2023
Total
Return		 2022
Total
Return
Glebe Investment
Properties		 7,465 11,873 25.6% 40.6% 3.9% 3.5% 37.2% 4.8%
Market
Investments		 21,739 17,363 74.4% 59.4% 2.5% 2.7% 10.2% -12.0%
29,204 29,236 100% 100% 3.0% 3.0% 19.7% -5.7%

GRANTS RECEIVED

The RDSBF gratefully acknowledges all grants received including Trust for London £341k (2022: £359k) and All Churches Trust £128k (2022: £144k).

The RDSBF gratefully received the following grants from the Archbishops’ Council:

SIGNIFICANT PROPERTY TRANSACTIONS

During the year, one property, the Upper Beckenham estate, was sold (2022: 4 properties) for £7.88m (2022: £0.99m), realising a surplus of £3.06m (2022: loss £41k).

During the year four (2022: 3) property sales were completed, generating total proceeds of £2.23m (2022: £1.34m) and realising a surplus over book value of £1.26m (2022: £0.45m).

There were no properties bought in 2023 (2022: 1, cost £870k).

BALANCE SHEET POSITION

Net assets at the balance sheet date totalled £80.8m (2022: £77.7m).

This includes properties which are mostly in use for ministry, the book value of which amounted to £52.1m as at 31 December 2023 (2022: £52.7m).

The Trustees consider the market value of these properties to be considerably more than the book value, and this market value is

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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 2023 stood at £10.2m (2022: £6.5m). The increase over the 2022 figure is principally due to the sale of the Upper Beckenham estate for £7.88m. Including market investments provides realisable liquid assets at 31 December 2023 of £30.4m (2022: £23.1m).

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 £2.6m at 31 December 2023 (2022: £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.

COMMON FUND

The reserve balance on the Common Fund was £1.7m as at 31 December 2023 (2022: £2.6m), which is below 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 2023 was £9.2m (2022: £9.1m).

RESTRICTED AND ENDOWMENT FUNDS

The RDSBF holds and administers a large number of restricted and endowment funds. As at 31 December 2023, restricted funds totalled £41.5m (2022: £40.9m) and endowment funds totalled £28.4m (2022: £25.1m).

FUNDS HELD AS CUSTODIAN TRUSTEE

The RDSBF is custodian trustee of assets held on permanent trust by virtue of the Parochial

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

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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.

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 includes the provision of public worship, spiritual support and guidance, and involvement in a wide range of community projects; together these represent a substantial contribution to the wider public benefit.

Access to Church of England churches is available to anyone irrespective of race, creed, gender or sexual orientation.

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 typically overseen by a parish priest (usually called a Vicar or Rector).

From ancient times through to today, the parish priest and their bishop are jointly responsible for the ‘cure of souls’ in their parish. His Majesty the King, who is the Supreme Governor of the Church of England, appoints archbishops, bishops and deans of cathedrals on the advice of the Prime Minister. The two archbishops and 24 senior bishops sit in the House of Lords.

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.

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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.

responsibilities for retirement welfare, the Pensions Board works in close co-operation both with the Archbishops’ Council and the Church Commissioners.

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

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.

THE DIOCESE’S 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 2021 for the 2022 to 2024 triennium.

Its role is to:

• act as a forum for debate of Christian opinion on matters of religious or public interest;

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DEANERY SYNOD

A deanery synod has two houses, laity and clergy, and its role is to:

• consider matters affecting the Church of England by drawing together the views of the parishes within the deanery;

BISHOP’S COUNCIL

The Bishop’s Council acts as:

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-in-charge 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.

Elections occurred during 2021 for the 2022 to 2024 triennium.

THE DIOCESE OF ROCHESTER

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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.

The Diocese serves a population of some 1.3 million, which is expected to increase by 300,000 over the next 20+ years. We have 174 (2021: 180) full-time equivalent substantive stipendiary parochial posts, and 25 (2021: 23) substantive self-supporting posts and there are 17 (2021: 19) stipendiary and 13 (2021: 14) 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 DECISIONMAKING 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 RDSBF 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. These together form the Operations Management Team. The

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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 163 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.

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.

STATEMENT OF

TRUSTEES’ RESPONSIBILITIES

TRUSTEE RECRUITMENT, SELECTION AND INDUCTION

The Board includes:

• Trustees who have been elected by Diocesan Synod to serve for three years, and

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

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

52

period. In preparing these financial statements the Trustees are required to:

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.

• 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 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.

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 xx in their capacity as company directors.

BY ORDER OF THE TRUSTEES

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the RDSBF’s website.

Mr Matthew Girt Diocesan Secretary

Canon Nigel Pope Chair of Rochester Diocesan Society and Board of Finance

28 May 2024

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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 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2023 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.

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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.

• 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

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

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• 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 pages 69-70, 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 noncompliance 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:

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USE OF OUR REPORT

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by

law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Askew

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

For and on behalf of Haymacintyre LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

6 June 2024

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.

57

STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2023

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
Revaluation of pension scheme liabilities
22
Transfers between funds
19
Transfers between funds - Total Unapplied Return
19/23
Net movement in funds
Reserve balances at 1st January 2023
Reserve balances at 31st December 2023		 Common Designated
£'000
£'000
7,524
-
561
-
1,832
-
374
-
10,291
-
(587)
-
(11,536)
-
(12,123)
-
(1,832)
-
178
-
644
(21)
(1,010)
(21)
(1,010)
(21)
(156)
-
11
130
258
-
(897)
109
2,608
9,092
1,711
9,201
note 16
Unrestricted		 Restricted
£'000
-
1,232
41
-
1,273
(5)
(1,971)
(1,976)
(703)
1,060
-
357
357
-
(141)
401
617
40,868
41,485
note 17		 Endowment
£'000
-
-
31
-
31
-
-
-
31
18
3,953
4,002
4,002
-
-
(659)
3,343
25,085
28,428
note 18		 Total
2023
£'000
7,524
1,793
1,904
374
11,595
(592)
(13,507)
(14,099)
(2,504)
1,256
4,576
3,328
3,328
(156)
-
-
3,172
77,653
80,825		 Total
2022
£'000
7,671
1,704
1,657
425
11,457
(642)
(13,082)
(13,724)
(2,267)
451
(2,822)
(4,638)
(4,638)
96
-
-
(4,542)
82,195
77,653

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 – £31k (2022 : £12k); Endowment Fund expenditure - £0k (2022 : £0k); Profit on Sale of Property - £18k (2022 : £0k); and Endowment Fund gains on investments - £3,953k (2022 : £1,452k losses).

58

BALANCE SHEET For the year ended 31 December 2023

Rochester Diocesan Society and Board of Finance(The) Company registration number 140656

Note
FIXED ASSETS
Tangible assets
9
Investments
10
CURRENT ASSETS
Debtors
11
Short term deposits
Cash at bank
CREDITORS: Amounts falling due within one year
Bank overdraft
Creditors
12
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due after more than one year
12
Pensions liability
Other creditors
NET ASSETS
Unrestricted
Restricted
Endowment
FUNDS
20		 Total
Total
2023
2022
£'000
£'000
52,054
52,655
29,204
29,236
81,258
81,891
823
733
9,047
4,314
1,170
2,255
11,040
7,302
23
21
10,670
10,739
10,693
10,760
347
(3,458)
81,605
78,433
-
-
780
780
80,825
77,653
10,912
11,700
41,485
40,868
28,428
25,085
80,825
77,653

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 2024 and signed on behalf of the Board by:

Canon Nigel Pope Chair of Rochester Diocesan Society and Board of Finance

59

STATEMENT OF CASH FLOWS For the year ended 31 December 2023

2023 2022
£'000 £'000 £'000 £'000
Net cash outflow from operating activities (4,289) (3,180)
Cash flows from investing activities
Investment income 1,904 1,657
Proceeds from the sale of:
Tangible fixed assets 2,042 1,311
Fixed asset investments 7,633 893
Purchase of:
Tangible fixed assets (619) (1,575)
Fixed asset investments (3,025) (190)
Net cash provided by investing activities 7,935 2,096
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 3,646 (1,084)
Cash and cash equivalents at 1 January 6,548 7,632
Cash and cash equivalents at 31 December 10,194 6,548
Reconciliation of net movement in funds to net cash outflow from 2023 2022
operating activities £'000 £'000
Net movement in funds for the year ended 31 December 3,172 (4,542)
Adjustments for:
Investment income (1,904) (1,657)
Depreciation 1 -
Gain on disposal of fixed assets (1,256) (451)
Gain on sale of investments (3,062) 40
Unrealised gain on investments (1,376) 2,982
Revaluation of investment property (138) (200)
Write off of Assets Under Construction to Restricted Fund 433 -
Decrease in creditors: falling due within one year (69) 859
Increase in debtors (90) 99
Decrease in creditors: falling due after one year - (310)
Net cash used in operating activities (4,289) (3,180)
Analysis of movements in net debt
Cash New
2022 Flows Borrowing 2023
£'000 £'000 £'000 £'000
Cash on deposit 4,314 4,733 - 9,047
Cash at bank 2,255 (1,085) - 1,170
Less overdraft (21) (2) - (23)
Total cash and cash equivalents 6,548 3,646 - 10,194
CCLA Loan falling due after one year (500) - - (500)
Equity Share loans due after one year (180) - - (180)
Value Linked Loans due after one year (100) - - (100)
Total 5,768 3,646 - 9,414

60

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

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 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, Second edition), 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 £80.8m (2022 : £77.7m) 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.

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.

statements.

61

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

Freehold properties

The RDSBF measures all freehold property assets at historical cost as allowed 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

f) Fund balances

Fund balances are split between unrestricted (common and designated), restricted and endowment funds.

62

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

There are two types of unrestricted funds:

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.

63

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

2. INCOME FROM DONATIONS

2. INCOME FROM DONATIONS
(Donations, Legacies and similar income)
Trust for London (formerly City Parochial Foundation)
Archbishops' Council - Sustainability Grant
Archbishops' Council - SMF Curate Grant
Archbishops' Council - RME Ordinands Grants
Archbishops' Council - Strategic Development Funding - Called to Grow
Archbishops' Council - Net Zero Carbon Starter Grant
Archbishops' Council - Past Cases Review
Archbishops' Council - Chatham Town Centre
Medway Council Future High Streets Fund - Chatham Town Centre
All Churches Trust - annual distribution
Partnership Fund appeals, confirmations, licensing & induction collections
Poverty & Hope Appeal
Guaranteed annuities
Readers' Fees
Donation from Greenhithe parishioner
Giving Advisor Grant from Church Commissioners
Legacy - Vera Constance Walsh		 Restricted
Endowment
Total
Common
Designated
2023
£'000
£'000
£'000
£'000
£'000
-
-
341
-
341
300
-
-
-
300
33
-
-
-
33
-
-
175
-
175
-
-
231
-
231
-
-
15
-
15
-
-
2
-
2
-
-
143
-
143
-
-
146
-
146
128
-
-
-
128
-
-
136
-
136
-
-
22
-
22
9
-
-
-
9
1
-
-
-
1
25
-
-
-
25
-
-
21
-
21
65
-
-
-
65
Unrestricted
561
-
1,232
-
1,793
(Donations, Legacies and similar income)
Trust for London (formerly City Parochial Foundation)
Archbishops' Council - SMF Curate Grant
Archbishops' Council - RME Ordinands Grants
Archbishops' Council - Strategic Development Funding - Called to Grow
Called to Grow re Anerley Parish
Archbishops' Council - Energy Costs Support Grant
Energy Costs Support Fund
Archbishops' Council - Ministry Hardship Fund
Archbishops' Council - Past Cases Review
Archbishops' Council - Chatham Town Centre
Listed Places of Worship - Chatham St John
National Heritage - Chatham St John
All Churches Trust - annual distribution
Partnership Fund appeals, confirmations, licensing & induction collections
Poverty & Hope Appeal
Guaranteed annuities
Readers' Fees
Giving Advisor Grant from Church Commissioners
Dartford Borough Council - Warm Spaces Grant
Other sundry items		 Restricted
Endowment
Total
Common
Designated
2022
£'000
£'000
£'000
£'000
£'000
-
-
359
-
359
38
-
-
-
38
-
-
292
-
292
-
-
164
-
164
-
-
9
9
-
-
249
249
-
-
27
-
27
-
-
77
77
-
-
30
-
30
-
-
60
-
60
-
-
8
-
8
-
-
25
-
25
146
-
-
-
146
-
-
142
-
142
-
-
22
-
22
14
-
-
-
14
2
-
-
-
2
-
-
34
-
34
-
-
4
4
1
-
1
-
2
Unrestricted
201
-
1,503
-
1,704

64

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

3. INVESTMENT INCOME

Rents receivable
Dividends receivable
Interest on deposits receivable		 Restricted
Endowment
Total
Common
Designated
2023
£'000
£'000
£'000
£'000
£'000
1,000
-
28
-
1,028
438
-
13
-
451
394
-
-
31
425
Unrestricted
1,832
-
41
31
1,904
Rents receivable
Dividends receivable
Interest on deposits receivable		 Restricted
Endowment
Total
Common
Designated
2022
£'000
£'000
£'000
£'000
£'000
1,064
-
26
-
1,090
522
-
33
-
555
-
-
-
12
12
Unrestricted
1,586
-
59
12
1,657

4. INCOME FROM CHARITABLE ACTIVITIES

4. INCOME FROM CHARITABLE ACTIVITIES
Diocesan Board of Finance element of Parochial Fees
Professional fees		 Restricted
Endowment
Total
Common
Designated
2023
£'000
£'000
£'000
£'000
£'000
369
-
-
-
369
5
-
-
-
5
Unrestricted
374
-
-
-
374
Diocesan Board of Finance element of Parochial Fees
Professional fees		 Restricted
Endowment
Total
Common
Designated
2022
£'000
£'000
£'000
£'000
£'000
414
-
-
-
414
11
-
-
-
11
Unrestricted
425
-
-
-
425

65

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

5. EXPENDITURE ON GENERATING INCOME

Glebe management costs
Non glebe commissions
Rental property maintenance
Cost of income generation		 Restricted
Endowment
Total
Common
Designated
2023
£'000
£'000
£'000
£'000
£'000
53
-
-
-
53
49
-
-
-
49
305
-
-
-
305
180
-
5
-
185
Unrestricted
587
-
5
-
592
Glebe management costs
Non glebe commissions
Rental property maintenance
Cost of income generation		 Restricted
Endowment
Total
Common
Designated
2022
£'000
£'000
£'000
£'000
£'000
100
-
-
-
100
36
-
-
-
36
349
-
-
-
349
152
-
5
-
157
Unrestricted
637
-
5
-
642

66

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

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
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
Chatham Town Centre
Called to Grow - SDF Funding
Called to Grow - Other Funding
Giving Advisor
Allocated support costs		 Restricted
Endowment
Total
General
Designated
2023
£'000
£'000
£'000
£'000
£'000
72
-
-
-
72
183
-
-
-
183
108
-
-
-
108
283
-
8
-
291
Unrestricted
646
-
8
-
654
6,397
-
-
-
6,397
22
-
-
-
22
11
-
-
-
11
334
-
191
-
525
765
-
-
-
765
22
-
9
-
31
112
-
-
-
112
482
-
-
-
482
183
-
-
-
183
90
-
-
-
90
274
-
-
-
274
1,079
-
31
-
1,110
9,771
-
231
-
10,002
6
-
644
-
650
72
-
-
-
72
20
-
-
-
20
71
-
-
-
71
7
-
-
-
7
311
-
-
-
311
-
-
4
-
4
-
-
824
-
824
-
-
214
-
214
-
-
6
-
6
-
-
21
21
632
-
19
-
651
1,119
-
1,732
-
2,851
11,536
-
1,971
-
13,507

Support costs comprise administration and governance costs which includes the audit fee of £29k (2022 : £27k).

Support costs include interest payable of £339k (2022 : £16k) on a £500k loan with CCLA and interest payable on parish Church Repair Fund and Diocesan Loan Fund balances.

67

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

6. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS (continued)

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
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
Youth Work
Diocesan Magazine
Chatham Town Centre
Growth Enablers
Called to Grow - SDF Funding
Called to Grow - Other Funding
Giving Advisor
Allocated support costs		 Restricted
Endowment
Total
General
Designated
2022
£'000
£'000
£'000
£'000
£'000
89
-
-
-
89
194
-
-
-
194
100
-
-
-
100
240
-
8
-
248
Unrestricted
623
-
8
-
631
6,580
-
-
-
6,580
22
-
-
-
22
11
-
-
-
11
322
27
291
-
640
713
-
-
-
713
15
-
23
-
38
129
-
-
-
129
453
-
-
-
453
194
-
-
-
194
83
-
-
-
83
265
-
-
-
265
913
-
32
-
945
9,700
27
346
-
10,073
4
-
836
-
840
89
-
-
-
89
16
-
-
-
16
81
-
-
-
81
6
-
-
-
6
304
-
-
-
304
-
-
4
-
4
-
-
2
-
2
-
-
2
-
2
-
-
103
-
103
-
-
108
-
108
-
-
217
-
217
-
-
3
-
3
-
-
51
-
51
533
-
19
-
552
1,033
-
1,345
-
2,378
11,356
27
1,699
-
13,082

68

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

7. STAFF COSTS

2023 2022
£'000 £'000
Ordained Diocesan Officials stipends 284 273
Other Lay Diocesan Personnel salaries 1,493 1,571
National Insurance 179 193
Life Insurance Policy 26 24
Pension Costs - Lay Diocesan Personnel 127 125
- Diocesan Clergy 61 88
2,170 2,274

During the year the RDSBF made employment termination payments totalling £Nil (2022 : £32,698)

The average number of persons employed by the RDSBF during the year:

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)		 2023
2022
Number
Number
28
28
9
10
5
6
7
7
49
51
7
8
-
2
56
61

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)		 2023
2022
Number
Number
24
25
6
6
4
5
5
5
39
41
5
6
-
2
44
49

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:-
2023 2022
Number Number
£60,000 - £70,000 1 1
£70,000 - £80,000 1 1
£80,000 - £90,000 - 2
£90,000 - £100,000 1 1

69

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

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 2023, they were:

Diocesan Secretary Mr Matthew Girt Finance Director (retired January 2023) The Rev Richard Williams Finance Director (appointed August 2023) Mr John Jackson Property Director (resigned June 2023) Mr Stephen Hoad Property Director (appointed December 2023) Ms Stephanie Shea Director of Formation and Ministry (resigned August 2023) The Rev Canon Chris Dench Diocesan Surveyor Mr Mark Trevett

Remuneration, pensions, national insurance contributions and expenses for these 7 employees amounted to £393,939 (2022 : £436,604).

Trustees’ Emoluments

No trustee received any remuneration for services as a Trustee. Five Trustees received travelling and out of pocket expenses (2022 : 5), totalling £18,467 (2022 : £16,771) 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:

Stipend Housing
The Bishop of Rochester – The Right Revered Dr Jonathon Gibbs Yes* Yes*
The Bishop of Tonbridge – The Right Reverend Simon Burton-Jones Yes* Yes
The Dean of Rochester Cathedral – Very Reverend Philip Hesketh Yes* Yes*
The Archdeacon of Bromley and Bexley – The Venerable Allie Kerr Yes Yes
The Archdeacon of Tonbridge – The Venerable Sharon Copestake Yes Yes
The Archdeacon of Rochester – The Venerable Andrew Wooding-Jones Yes Yes
The Chair of the House of Clergy – The Reverend Canon Jeremy Blunden 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.

2023
2022
£'000
£'000
Parish Stipends, National Insurance & Pension Costs
Parish Stipends
4,828
4,767
National Insurance
378
391
Pension Costs
1,203
1,434
6,409
6,592
Number of parish clergy in post as at 31 December (Full-time equivalent)
168
174		 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)		 2023
2022
£'000
£'000
4,828
4,767
378
391
1,203
1,434
6,409
6,592
168
174

70

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

8. ANALYSIS OF GRANTS MADE

No.
Individuals
Institutions
Source
£'000
£'000
From unrestricted funds:
Ordinands in training
21
207
-
Common Fund
Clergy training
26
13
-
Common Fund
Clergy removal grants
14
28
-
Common Fund
Clergy resettlement grants
16
34
-
Common Fund
Clergy first appointment grants
14
35
-
Common Fund
Kent Workplace Mission
1
-
4
Common Fund
Lay Ministry Support
1
-
14
Common Fund
Archdeacons' discretionary grants
-
3
2
Common Fund
From restricted funds:
Ministry Division Ordinand Block Grants
39
37
154
Ministry Division Fund
Overseas Partnership: Harare
7
-
15
Companion Diocese Fund
Overseas Partnership: Tanzania
26
6
104
Companion Diocese Fund
Parochial Church Councils
5
-
79
Pastoral Account
Christian Aid
1
-
5
Poverty & Hope Appeal
Church Mission Society
1
-
4
Poverty & Hope Appeal
United Society (formerly USPG)
1
-
4
Poverty & Hope Appeal
Clergy grants
4
17
-
Trust for London
Parochial Church Councils
6
-
43
Church Extension Fund
Parochial Church Councils
1
-
4
£500k CYP Fund
Clergy hardship grants
95
29
-
Ministry Hardship Fund
Parochial Church Councils
2
-
322
Thames Gateway Capital Fund
Parochial Church Councils
1
-
12
Local Church Urban Fund		 2023
£'000
207
13
28
34
35
4
14
5
191
15
110
79
5
4
4
17
43
4
29
322
12
1,175

71

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

8. ANALYSIS OF GRANTS MADE (continued)

No.
Individuals
Institutions
Source
£'000
£'000
From unrestricted funds:
Ordinands in training
17
177
-
Common Fund
Clergy training
27
13
-
Common Fund
Clergy removal grants
18
35
-
Common Fund
Clergy resettlement grants
16
32
-
Common Fund
Clergy first appointment grants
22
43
-
Common Fund
Kent Workplace Mission
1
-
4
Common Fund
Lay Ministry Support
1
-
13
Common Fund
Archdeacons' discretionary grants
1
5
3
Common Fund
Clergy energy grants
-
27
-
Mininstry and Mission Support
From restricted funds:
Ministry Division Ordinand Block Grants
42
43
248
Ministry Division Fund
Parochial Church Councils
257
-
446
Energy Costs Support Fund
Overseas Partnership: Harare
8
-
19
Companion Diocese Fund
Overseas Partnership: Tanzania
25
5
110
Companion Diocese Fund
Beckenham St Michael
1
-
28
Pastoral Account
Parochial Church Councils
3
-
20
Pastoral Account
Christian Aid
1
-
5
Poverty & Hope Appeal
Church Mission Society
1
-
5
Poverty & Hope Appeal
Commonwork Land Trust
1
-
5
Poverty & Hope Appeal
United Society (formerly USPG)
1
-
5
Poverty & Hope Appeal
Harare Diocese
1
-
2
Poverty & Hope Appeal
St Philips Theoplogical College Mpwapwa
1
-
2
Poverty & Hope Appeal
Kondoa Diocese
1
-
2
Poverty & Hope Appeal
Parochial Church Councils
4
-
25
Trust for London
Bishop of Rochester Discretionary Fund
1
-
2
Trust for London
Clergy grants
12
31
-
Trust for London
Parochial Church Councils
2
-
4
Church Extension Fund
Parochial Church Councils
2
-
2
Cobham and Gravesend Churches
Parochial Church Councils
34
-
78
£500k CYP Fund
Clergy hardship grants
108
37
-
Ministry Hardship Fund
Parochial Church Councils
4
-
4
CESA Warm Spaces Fund		 2022
£'000
177
13
35
32
43
4
13
8
27
291
446
19
115
28
20
5
5
5
5
2
2
2
25
2
31
4

2
78
37
4
1,480

72

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

9. TANGIBLE FIXED ASSETS

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
Cost or valuation
Balance 1 January 2023
5,669
8,445
123
174
19,321
20,882
591
609
2,339
136
58,289
Additions
-
98
-
-
-
401
-
-
120
-
619
Disposals
-
-
-
-
-
-
(420)
(433)
-
-
(853)
Write off to Restricted Fund
-
-
-
-
-
-
-
-
(433)
-
(433)
Balance 31 December 2023
5,669
8,543
123
174
19,321
21,283
171
176
2,026
136
57,622
Depreciation
Balance 1 January 2023
-
1,086
-
52
-
4,242
-
119
-
135
5,634
Charge for the year
-
-
-
-
-
-
-
-
-
1
1
Disposals
-
-
-
-
-
-
-
(67)
-
-
(67)
Balance 31 December 2023
-
1,086
-
52
-
4,242
-
52
-
136
5,568
Net book values
At 31 December 2023
5,669
7,457
123
122
19,321
17,041
171
124
2,026
-
52,054
At 31 December 2022
5,669
7,359
123
122
19,321
16,640
591
490
2,339
1
52,655
Board
Equity Sharing
Benefice
Assets Held
Property
Property
Property
For Sale		 Cost or valuation
Balance 1 January 2023
Additions
Disposals
Write off to Restricted Fund
Balance 31 December 2023
Depreciation
Balance 1 January 2023
Charge for the year
Disposals
Balance 31 December 2023
Net book values
At 31 December 2023
At 31 December 2022		 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
5,669
8,445
123
174
19,321
20,882
591
609
2,339
136
58,289
-
98
-
-
-
401
-
-
120
-
619
-
-
-
-
-
-
(420)
(433)
-
-
(853)
-
-
-
-
-
-
-
-
(433)
-
(433)
Board
Equity Sharing
Benefice
Assets Held
Property
Property
Property
For Sale
5,669
8,543
123
174
19,321
21,283
171
176
2,026
136
57,622
-
1,086
-
52
-
4,242
-
119
-
135
5,634
-
-
-
-
-
-
-
-
-
1
1
-
-
-
-
-
-
-
(67)
-
-
(67)
-
1,086
-
52
-
4,242
-
52
-
136
5,568
5,669
7,457
123
122
19,321
17,041
171
124
2,026
-
52,054
5,669
7,359
123
122
19,321
16,640
591
490
2,339
1
52,655

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.

73

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

10. FIXED ASSET INVESTMENTS
Investments
Mercer Global Investment Management
Investment Properties
At 1 January 2023
Additions
Disposals
Realised gains
Sale proceeds
Net gains/(losses) on investments
At 31 December 2023		 Cost
Market Value
Cost
Market Value
£'000
£'000
£'000
£'000
19,774
21,739
16,774
17,363
7,465
11,873
29,204
29,236
£'000
£'000
29,236
32,761
3,025
190
(4,571)
(933)
(3,062)
40
(7,633)
(893)
4,576
(2,822)
29,204
29,236
2022
2023

Net gains on investments shown in the Statement of Financial Activities of £4,576k (2022: £2,822k losses) comprise unrealised gains of £1,514k (2022 : £2,782k losses) and realised gains £3,062k (2022 : £40k losses) as a result of disposals realising proceeds of £7,633k (2022 : £893k).

The investments are held by Mercer Global Investment Management and, with the exception of £1,544k (2022 : £836k) held in Private Markets, can 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

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
93
21
75
16
261
-
161
-
446
2
476
5
2023
2022
800
23
712
21

The loans to 6 parishes (2022 : 6) 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.

74

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

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
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
57
-
37
-
6
-
6
-
-
280
-
280
4,747
-
4,397
-
34
-
33
-
4,846
-
4,733
-
-
500
-
500
980
-
1,533
-
2023
2022
10,670
780
10,739
780

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.

The CCLA loan was obtained in 2020 and is an unsecured interest only loan repayable after 10 years. The interest rate is variable and tracks 0.55% above the CBF Church of England deposit rate which is currently 4.05%.

13. MEMBERS’ LIABILITY

The Board is a company limited by Guarantee. At 31 December 2023 there were 116 (2022 : 120) 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		 2023
2022
£'000
£'000
7
7
22
17
29
24

75

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

15. RELATED PARTY TRANSACTIONS

During the year the following related party transactions took place:

Related Party Relationship 2023 2022
£'000 £'000
Mrs Julia Burton-Jones Wife of Bishop of Tonbridge Professional fees in 17 17
respect of work on
Dementia Friendly
Church Project.
Trustees Total restricted 17 21
donations made to the
RDSBF.
Rochester Diocesan Board of Education Amounts due to RDBE. 57 37
The outstanding balances with related parties at 31 December 2023 are included in note 12.
There were no other related party transactions during the year or prior year.
Details of related parties can be found in the Trustees Report.

16. DESIGNATED FUNDS

Balance at Balance at
1 January Income **Expenditure ** Investment 31 December
2023 Movements Transfers 2023
£'000 £'000 £'000 £'000 £'000 £'000
Central Church Funding 77 - - - 35 112
Property Fund 9,015 - - (21) 95 9,089
9,092 - - (21) 130 9,201

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. A transfer of £34k (2022 : nil) was made is respect of sustainability funding received in the year that was designated to fund specific work in the coming year.

Property Fund

This fund has been set aside by the Trustees for the purpose of funding Board property acquisitions and development. The transfer of £96k (2022 : nil) represents capitalization of works undertaken on Board properties during the year.

76

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

16. DESIGNATED FUNDS (continued)

Balance at Balance at
1 January Income **Expenditure ** Investment 31 December
2022 Movements Transfers 2022
£'000 £'000 £'000 £'000 £'000 £'000
Central Church Funding 99 - (27) - 5 77
Property Fund 9,015 - - - - 9,015
9,114 - (27) - 5 9,092

77

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

17. RESTRICTED FUNDS

Balance at Balance at
1 January Income Expenditure Investment 31 December
2023 Movements Transfers 2023
£'000 £'000 £'000 £'000 £'000 £'000
Poverty & Hope Appeal 13 23 (13) - (6) 17
Committee Amongst Deaf 23 - - - - 23
Local Church Urban Fund 37 13 (12) - - 38
Diocesan Pastoral Account 669 25 (151) - (252) 291
Trust for London (formerly City Parochial Foundation) 139 341 (24) - (200) 256
Benefice Property 35,961 - - - 401 36,362
Thames Gateway 7 - - - - 7
Thames Gateway Capital Fund 457 - (322) - - 135
Parsonage Building Fund 1,901 - - 1,060 234 3,195
Church Extension Fund 753 - (46) - 129 836
Companion Diocese Funds 28 136 (129) - 6 41
Ministry Division RME Ordinand's Grant 93 175 (191) - - 77
Children & Young People £500K Fund 87 - (4) - - 83
Chatham Town Centre 525 289 (814) - - -
Children & Young People misc. funds 1 - - - - 1
Cobham and Gravesend Churches Fund 57 - - - - 57
Called to Grow - Strategic Development Funding 56 231 (215) - (50) 22
Past Cases Review - 2 - - (2) -
Covid Winter Grant - CESA 5 - - - - 5
Luton Memorial Meadow 10 2 - - - 12
Giving Advisor - 21 (21) - - -
Ministry Hardship Fund 40 - (28) - - 12
SDF Anerley 6 - (6) - - -
Net Carbon Zero Starter - 15 - - - 15
40,868 1,273 (1,976) 1,060 260 41,485

Poverty and Hope Appeal

Money raised by an annual appeal and passed on in grants to various missionary and relief agencies. The transfer of £6k (2022 : nil) was made to the Companion Diocese Funds.

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.

Diocesan Pastoral Account

Capital monies originally received under the Pastoral Measure 1983 and is restricted thereby. Income arises from rental income of £25k (2022 : £24k). Expenditure includes a £6k (2022 - £6k) grant to Strood St Nicholas PCC to assist with their Called to Grow administration costs, a £14k (2022 : nil) grant to Kemsing PCC to help with hall insurance costs, a £35k (2022: nil) grant to Stone PCC to help with costs for their new hall, £20k (2022 : £20k) to the Bishop’s Discretionary Fund and £68k (2022 : £41k) Diocesan project costs. The net transfer of £252k includes £234k (2022 : nil) to the Parsonage Building Fund re a new parsonage for 78 Beckenham St James and provision of the Archdeacon’s Discretionary Funds of £20k (2022 : £20k).

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

17. RESTRICTED FUNDS (continued)

Trust for London

An annual allocation from the Foundation to use within the Archdeaconry of Bromley and Bexley. The transfer of £200k (2022 : £442k) represents contributions to community and children’s projects, training, stipends and administration.

Benefice Property

The fund value represents the capital value of parsonage houses less depreciation. The net transfer of £401k (2022 : £462k) relates to 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. Expenditure of £322k represents grants to Erith St John PCC of £122k (2022 : nil) towards refurbishment costs for their hall and £200k (2022 : nil) to Stone PCC for their new hall.

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 £1,060k (2022 : nil) represents the profit on the sale of the old parsonage at Beckenham St James and the transfer of £234k (2022 : nil) is with regard to the net book value of this property meaning net proceeds of £1,294k are being held to fund the construction of the new parsonage.

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 expenditure of £46k (2022 : £4k) includes Missional Property Fund grants made to six parishes for building projects.

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. The transfer of £6k (2022 : nil) came from the Poverty and Hope Fund.

Ministry Division RME Ordinand’s Grant

Block grant received from the Archbishop’s Council Ministry Division to fund ordinand training.

Children and Young People 500K Fund

Fund established as part of the Called Together initiative. The expenditure of £4k (2022 : £78k) represents a grant made to Dartford St Edmund PCC for their Children and Youth project.

Chatham Town Centre

Grants received from the Church Commissioners to help fund redevelopment of Chatham Town Centre. The expenditure of £814k (2022 : £89k) represents current year costs of the project but also the off set of historic costs which were being held in Assets Under Construction of £433k (2022 : nil).

Children and Young People Funds

This represents 1 small grant specifically for the Children and Young People Projects, 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.

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.

79

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

17.RESTRICTED FUNDS (continued)

Past Cases Review

The Past Cases Review, was a comprehensive safeguarding review across churches and key institutions within the Diocese of Rochester. The purpose of the Review was to help find out whether all known cases of concern about the behaviour of clergy and church officers towards children and vulnerable adults had been considered, risk assessed and dealt with appropriately. Independent reviewers carried out the Review which completed in 2021. The anticipated cost was expected to be divided between the Bishop, the Diocesan Pastoral Account and the Church Commissioners. A further £2k (2022 : £30k) was received from the Church Commissioners which was transferred back to the DPA.

Covid Winter Grant – CESA

Grants received to help the homeless in the Medway area.

Luton Memorial Meadow

Rental income received to be used in relation to expenditure to this property.

Giving Advisor

Grant from the Church Commissioners to cover 50% of the costs of providing a Giving Advisor over a period of 5 years.

Ministry Hardship Grant

Grant received from the Church Commissioners to help clergy with rising energy costs. Grants of £300 (2022 : £340) were made to 95 (2022 : 108) clergy people experiencing hardship due to rising energy costs.

SDF Anerley

Contribution from Anerley PCC, being one of the parishes being supported by Called to Grow, towards their Freedom Forum Pastor.

Net Carbon Zero Starter

Grant received from the Archbishop’s Council to enable the Diocese to employ people to assist parishes in moving towards Net Carbon Zero.

80

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

17. RESTRICTED FUNDS (continued)

Balance at Balance at
1 January Income Expenditure Investment 31 December
2022 Movements Transfers 2022
£'000 £'000 £'000 £'000 £'000 £'000
Poverty & Hope Appeal 17 22 (26) - - 13
Committee Amongst Deaf 23 - - - - 23
Local Church Urban Fund 21 16 - - - 37
Diocesan Pastoral Account 1,121 24 (224) - (252) 669
Diocesan Pastoral Account re Sale of Beckenham St Michael Hall 27 - (27) - - -
Trust for London (formerly City Parochial Foundation) 285 359 (63) - (442) 139
Benefice Property 35,499 - - - 462 35,961
Thames Gateway 7 - - - - 7
Thames Gateway Capital Fund 457 - - - - 457
Parsonage Building Fund 1,901 - - - - 1,901
Church Extension Fund 757 - (4) - - 753
Companion Diocese Funds 24 142 (138) - - 28
Ministry Division RME Ordinand's Grant 92 292 (291) - - 93
Children & Young People £500K Fund 122 18 (78) - 25 87
Chatham Town Centre 522 92 (89) - - 525
Children & Young People misc. funds 3 - (2) - - 1
Cobham and Gravesend Churches Fund 59 - (2) - - 57
Together Magazine 1 - (1) - - -
Called to Grow - Strategic Development Funding 110 164 (218) - - 56
Past Cases Review 18 30 - - (48) -
Covid 19 Emergency Relief/Energy Costs Support 22 276 (446) - 148 -
Covid Winter Grant - CESA 4 1 - - - 5
Luton Memorial Meadow 8 2 - - - 10
Giving Advisor 17 34 (51) - - -
Ministry Hardship Fund - 77 (37) - - 40
SDF Anerley - 9 (3) - - 6
Warm Spaces Grant - CESA - 4 (4) - - -
41,117 1,562 (1,704) - (107) 40,868

81

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

18.ENDOWMENT FUNDS

Balance at Balance at
1 January Income Expenditure Investment 31 December
2023 Movements Transfers 2023
£'000 £'000 £'000 £'000 £'000 £'000
Stipends Capital Account 5,794 - - - 589 6,383
Unapplied Total Return 13,355 - - 3,622 (1,248) 15,729
Training 1,413 - - 112 - 1,525
Pensions & Retired Clergy 1,476 - - 50 - 1,526
Buildings 78 - - 7 - 85
Parsonages 652 - - 52 - 704
Local Church Urban Fund 483 - - 38 - 521
Social Mission 1,136 - - 90 - 1,226
David Goodwin Legacy 698 31 - - - 729
25,085 31 - 3,971 (659) 28,428

Stipends Capital Account/Unapplied Total Return

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 capitalisation of works to parsonages of £401k funded through Unapplied Total Return and net investment gains. Transfers also included Unapplied Total Return of £258k to the Common Fund for bringing investment yield to 4%. The Unapplied Total Return balance includes operational properties with a value of £3.4m which have been ringfenced therefore leaving £12.3m available for draw down. Note 23 shows full details of movements 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.

82

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

18. ENDOWMENT FUNDS (continued)

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 the parish 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.

Balance at Balance at
1 January Income **Expenditure ** Investment 31 December
2022 Movements Transfers 2022
£'000 £'000 £'000 £'000 £'000 £'000
Stipends Capital Account 5,665 - - - 129 5,794
Unapplied Total Return 14,505 - - (696) (454) 13,355
Training 1,647 - - (243) 9 1,413
Pensions & Retired Clergy 1,581 - - (109) 4 1,476
Buildings 92 - - (14) - 78
Parsonages 760 - - (112) 4 652
Local Church Urban Fund 563 - - (83) 3 483
Social Mission 1,322 - - (195) 9 1,136
David Goodwin Legacy 686 12 - - - 698
26,821 12 - (1,452) (296) 25,085

19. TRANSFERS BETWEEN FUNDS

Common Designated Restricted Endowment
Fund Funds Funds Funds
Note £'000 £'000 £'000 £'000
Parsonage and ministry house movements (224) 95 129 -
Transfer to Archdeacons' Discretionary Funds 20 - (20) -
Transfers from Trust for London 200 - (200) -
SDF Support Function/CESA Staff Costs 50 - (50) -
Sustainability Funding (35) 35 - -
Transfers before Total Unapplied Return 11 130 (141) -
Total Unapplied Return 23 258 - 401 (659)
Total transfers as at 31 December 2023 269 130 260 (659)

The transfers summarised above are described in notes 16-18.

83

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

19. TRANSFERS BETWEEN FUNDS (continued)

Common Designated Restricted Endowment
Fund Funds Funds Funds
Note £'000 £'000 £'000 £'000
Transfer of funds to reduce the clergy pension deficit (337) - - 337
Parsonage and ministry house movements 250 - (250) -
Transfer to Archdeacons' Discretionary Funds 20 - (20) -
Transfers from Trust for London 417 - (417) -
SDF Support Function/CESA Staff Costs 30 - (30) -
Transfer of Designated Fund Balance (5) 5 - -
Mercer Management Fees Capitalised (60) - - 60
Energy Support Grants to parishes (148) - 148 -
Transfers before Total Unapplied Return 167 5 (569) 397
Total Unapplied Return 23 231 - 462 (693)
Total transfers as at 31 December 2022 398 5 (107) (296)

20. NET ASSETS BETWEEN FUNDS

20. NET ASSETS BETWEEN FUNDS
Note
Fixed assets
9
Investments
10
Current assets
Creditors
Creditors > 1 year
As at 31 December 2023		 Common
Designated
Restricted Endowment
Total
Fund
Funds
Funds
Funds
£'000
£'000
£'000
£'000
£'000
2,025
9,253
36,928
3,848
52,054
8,770
404
-
20,030
29,204
2,109
(176)
4,557
4,550
11,040
(10,693)
-
-
-
(10,693)
(500)
(280)
-
-
(780)
1,711
9,201
41,485
28,428
80,825

84

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

20. NET ASSETS BETWEEN FUNDS (continued)

Note
Fixed assets
9
Investments
10
Current assets
Creditors
Creditors > 1 year
As at 31 December 2022		 Common
Designated
Restricted Endowment
Total
Fund
Funds
Funds
Funds
£'000
£'000
£'000
£'000
£'000
2,339
9,349
36,761
4,206
52,655
8,127
425
-
20,684
29,236
3,381
(402)
4,107
195
7,281
(10,739)
-
-
-
(10,739)
(500)
(280)
-
-
(780)
2,608
9,092
40,868
25,085
77,653

21. ASSETS HELD AS CUSTODIAN TRUSTEE

2023
2022
£'000
£'000
Investments (at cost)
703
707
Property
648
648
Cash at bank
1,290
872
2,641
2,227		 Investments (at cost)
Property
Cash at bank		 2023
2022
£'000
£'000
703
707
648
648
1,290
872
2,641
2,227

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:-

2023
2022
£'000
£'000
Clergy Scheme (see note 22b below)
-
140
Lay Scheme (see note 22d below)
(156)
(44)
(156)
96		 Clergy Scheme (see note 22b below)
Lay Scheme (see note 22d below)		 2023
2022
£'000
£'000
-
140
(156)
(44)
(156)
96

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 scheme separately from those of the Responsible Bodies.

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body and this means contributions are accounted for as if the85

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

22. PENSION SCHEMES (continued)

Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Financial Activities in the year are contributions payable towards benefits and expenses accrued in that year. The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were zero (2022 : £197k).

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

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

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

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

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

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

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

2023 2022
Balance sheet liability at 1 January - 337
Deficit contribution paid - (197)
Interest cost (recognised in SoFA) - -
Remaining change to the balance sheet liability* (recognised in - (140)
SoFA)
Balance sheet liability at 31 December - -

86

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

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. No assumptions are needed for December 2022 onwards as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

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

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 £60,383 (2022 : £57,795) and the amount owed to the scheme at 31 December 2023 was nil (2022 : 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 the contributions to be paid to meet the Statutory Funding Objective.

The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2021 and the next valuation of the Scheme is due as at 31 March 2024. 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 £79k in the year to 31 December 2024 (based on salaries between 31 December 2022 and 31 December 2023 – 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.

There were no plan amendments, curtailments or settlements through the period.

At 31 December 2023 the FRS102 valuation, which is based on different underlying assumptions to the actuarial valuation, calculated a surplus in the Scheme of £2,609k (2022 : £2,697k). Under FRS102 the Employer 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 2023 reflected in these accounts is £nil. This compares to an asset value of £nil at the previous review date.

87

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

22. PENSION SCHEMES (continued)

2. PENSION SCHEMES (continued)
Principal Actuarial Assumptions 31 December 2023 31 December 2022
Discount rate 4.45% 4.65%
Inflation (RPI) 3.30% 3.35%
Inflation (CPI) 2.60% 2.55%
Salary increases
-
From 31/3/2021 – 31/3/2022
-
From 1/4/2022 – 31/3/2023
-
From 1/2/2024 onwards		 1.00%
2.00%
3.30%		 1.00%
2.00%
3.35%
Increases in payment to Post 1992 benefits
in excess of GMP (RPI max 5%)		 3.15% 3.25%
Increases in payment to Post 2016 benefits
in excess of GMP (CPI max 2.5%)		 2.00% 1.90%
Revaluation in deferment
(benefits in excess of GMP)		 2.60% 2.60%
Post-retirement mortality 95% of the S3PA tables with CMI
2020 projections using a long-
term improvement rate of 1.25%
p.a.		 95% of the S2PA tables with CMI
2020 projections using a long-
term improvement rate of 1.25%
p.a.
Commutation 70% of members are assumed to
take the maximum tax free cash
possible		 70% of members are assumed to
take the maximum tax free cash
possible

The current asset split is as follows:

Bid values as at 31 December
2023
£’000
Bid values as at 31 December
2022
£’000
Global Equities
Fixed Interest Gilts
Index Linked gilts
Cash		 2,104
1,455
3,581
167
2,102

1,368

3,443

144
Total assets 7,307
7,057

The following amounts at 31 December 2023 and 31 December 2022 were measured in accordance with the requirements of FRS102:

Balance sheet At 31 December 2023
£’000		 At 31 December 2022
£’000
Fair value of assets
Present value of funded obligations		 7,307
(4,698)
7,057
(4,360)
Surplus/(deficit) in scheme 2,609 2,697
Impact on limit of recognisable surplus (2,609) (2,697)
Net defined benefit asset/(liability) -
88		 -

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

22. PENSION SCHEMES (continued)

Amount recognised in Statement of
Financial Activities (SOFA)
Period to 31 December 2023
£’000		 Period to 31 December 2022
£’000
Current service cost
Administration costs
Interest on liabilities
Interest on assets
Past service costs
Settlement and curtailment cost		 36
12
202
(329)
-
-
90

-

128

(183)

-

-
Total charge to SOFA (79) 35
Remeasurements over the year Remeasurements over the year Period to 31 December 2023
£’000		 Period to 31 December 2022
£’000
Loss/(gain) on assets in excess of
interest
Experience losses/(gains) on
liabilities
Losses/(gains) from changes to
demographic assumptions
Losses/(gains) from changes to
financial assumptions		 98
22
-
124
2,798

442

-

(3,037)
Total remeasurements 244
203
Change in value of the assets Period to 31 December 2023
£’000		 Period to 31 December 2022
£’000
Fair value of assets at start 7,057 9,638
Interest on assets
Company contributions
Contributions by Scheme
participants
Benefits paid
Administration costs
Change due to settlements and
curtailments
Return on assets less interest		 329
77
26
(72)
(12)
-
(98)
183

78

20

(64)

-

-

(2,798)
Fair value of assets at end 7,307 7,057
Actual returnon assets **231 ** (2,615)

89

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

22. PENSION SCHEMES (continued)

Change in value of DB liabilities Period to 31 December 2023
£’000		 Period to 31 December 2022
£’000
Value of liabilities at start 4,360 6,781
Current service cost
Contributions by scheme participants
Past service costs
Interest on liabilities
Benefits paid
Change due to settlements or
curtailments
Experience (gain)/loss on liabilities
Changes to demographic assumptions
Changes to financial assumptions		 36
26
-
202
(72)
-
22

-
124
90

20

-

128

(64)

-

442

-

(3,037)
Value of liabilities at end 4,698 4,360
Projected Profit & Loss account for next year Period to 31 Dec 2024
£’000
Current service cost 39
Administration costs -
Interest on liabilities 208
Interest on assets (326)
Settlement and curtailment costs -
Past service cost -
Total (79)

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.

90

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

22. PENSION SCHEMES (continued)

e. Church Workers Pension Fund (CWPF)

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

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

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

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

Pension Builder Scheme

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

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

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SofA in the year are the contributions payable being £11k (2022 : £11k).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation was due as at 31 December 2022. Calculations for this are currently underway.

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

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

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

91

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

23. TOTAL RETURN ACCOUNTING

From the 1 January 2022 the RDSBF adopted a total return approach to investments and property with regard to the Stipends Capital Fund (SCF). Under the Diocesan Stipends Capital Fund (Amendment) Measure S104b of the Charities Act 2011 the Stipends Capital Account may be split into capital funds and unapplied total return (UTR).

Total return accounting policy was approved by Bishop’s Council on 25 May 2022 with final calculations being completed and approved by Haysmacintyre in their letter of 31 May 2022. The initial base value of Intergenerational Equity for implementing total return was determined at 1 January 2022 being £6.0m for the SCF. The UTR was set at £14.5m with £2.9m being attributable to operational ministry properties which are not immediately realisable within the SCF.

Following realised and unrealised investment gains of £3,622k (2022 : £696k losses), UTR was drawn down in the year as follows:

Intergenerational equity saw an uplift of £228k for indexation (2022 : £631k) and £361k (2022 : £462k) was transferred back to Intergenerational equity following the sale of Hathaway Court, Rochester, being a temporary parsonage for the parish of Rochester initially purchased with funds from the Stipends Capital Fund. Consequently, the amount of UTR attributable to operational ministry properties within the SCF decreased to £3.3m (2022 : £3.7m). Therefore the amount of realisable UTR at 31 December 202 was £12.4m (2022 : £9.7m).

Movements and balances as at the 31 December 2023 were as follows:

Note
At 1 January 2023
Opening Intergenerational Equity
Opening Unapplied total return
Opening Pension Liability
Total
Movements during the year
Intergenerational Equity uplift re indexation
Transfers to/(from) Intergenerational Equity
Investment movements: realised and unrealised gains/(losses)
Unapplied total return transferred to Common Fund re Investment Yield
19
Unapplied total return utilised on Parsonage capital expenditure
19
Net movement during the year:
Closing Intergenerational Equity
Closing Unapplied total return
Total at 31 December 2023		 Intergenerational
Unapplied
Pension
Total
Equity
Total Return
Liability
2023
£'000
£'000
£'000
£'000
5,794
-
-
5,794
-
13,355
-
13,355
-
-
-
-
5,794
13,355
-
19,149
228
(228)
-
-
361
(361)
-
-
-
3,622
-
3,622
589
3,033
-
3,622
-
(258)
-
(258)
-
(401)
-
(401)
-
(659)
-
(659)
589
2,374
-
2,963
6,383
-
-
6,383
-
15,729
-
15,729
6,383
15,729
-
22,112

92

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

23. TOTAL RETURN ACCOUNTING (continued)
At 1 January 2022
Opening Intergenerational Equity
Opening Unapplied total return
Opening Pension Liability
Total
Movements during the year
Intergenerational Equity uplift re indexation
Transfers to/(from) Intergenerational Equity
Investment movements: realised and unrealised gains/(losses)
Investment movements: capitalisation of management fees
Write back of pension liability
Unapplied total return transferred to Common Fund re Investment Yield
Unapplied total return transferred to Common Fund re Stipends
Unapplied total return utilised on Parsonage capital expenditure
Net movement during the year:
Closing Intergenerational Equity
Closing Unapplied total return
Closing Pension Liability
Total at 31 December 2022		 Intergenerational
Unapplied
Pension
Total
Equity
Total Return
Liability
2022
£'000
£'000
£'000
£'000
6,002
-
-
6,002
-
14,505
-
14,505
-
-
(337)
(337)
6,002
14,505
(337)
20,170
631
(631)
-
-
(870)
870
-
-
-
(696)
-
(696)
31
-
-
31
-
-
337
337
(208)
(457)
337
(328)
-
(83)
-
(83)
-
(148)
-
(148)
-
(462)
-
(462)
-
(693)
337
(693)
(208)
(1,150)
337
(1,021)
5,794
-
-
5,794
-
13,355
-
13,355
-
5,794
13,355
-
19,149

93

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

24. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
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
Transfers between funds - Total Unapplied Return
19/23
Net movement in funds
Reserve balances at 1st January 2022
Reserve balances at 31st December 2022		 Common
Designated
£'000
£'000
7,671
-
201
-
1,586
-
425
-
9,883
-
(637)
-
(11,356)
(27)
(11,993)
(27)
(2,110)
(27)
451
-
(1,370)
-
(3,029)
(27)
(3,029)
(27)
-
-
96
-
167
5
231
-
(2,535)
(22)
5,143
9,114
2,608
9,092
note 16
Unrestricted		 Restricted
£'000
-
1,503
59
-
1,562
(5)
(1,699)
(1,704)
(142)
-
-
(142)
(142)
-
-
(569)
462
(249)
41,117
40,868
note 17		 Endowment
Total
2022
£'000
£'000
-
7,671
-
1,704
12
1,657
-
425
12
11,457
-
(642)
-
(13,082)
-
(13,724)
12
(2,267)
-
451
(1,452)
(2,822)
(1,440)
(4,638)
(1,440)
(4,638)
-
-
-
96
397
-
(693)
-
(1,736)
(4,542)
26,821
82,195
25,085
77,653
note 18

94

CUSTODIAN TRUSTEESHIP FUNDS – BALANCE SHEET For the year ended 31 December 2023

This page does not form part of the audited financial statements

2023 2022
Capital Revenue Capital Revenue
£'000 £'000 £'000 £'000
Investments at cost (see below) 699 3 704 3
Freehold property 645 - 645 -
Freehold interest in leased properties 3 - 3 -
Cash
National Savings Bank 11 1 11 1
CCLA Investment Management Ltd - Deposit Fund
Miscellaneous 1,178 95 759 95
Church Commissioners Deposit Account
Barclays Bank - Current Account - 6 - 6
1,189 102 770 102
Total Assets 2,536 105 2,122 106
Representing
Parochial Funds 2,518 98 2,104 99
Non-Parochial Funds 19 8 18 7
Total Funds 2,536 105 2,122 106
INVESTMENTS NOTE 2023 2022
**Cost ** Market value Cost Market value
£'000 £'000 £'000 £'000
CAPITAL
Quoted Investments 5 160 5 147
Unlisted Investments
CCLA Investment Management Ltd
Investment Fund Income Shares
199,421 (2022 201,735 shares) 548 4,508 553 4,168
Fixed Interest Fund Income Shares
44,806 (2022 44,806 shares) 72 65 72 61
Global Equity
25,919 (2022 25,919 shares) 30 78 30 68
Property Fund
34,935 (2022 34,935 shares) 44 43 44 46
694 4,694 699 4,343
699 4,854 704 4,490
REVENUE
Unlisted Investments
CCLA Investment Management Ltd
Investment Fund Income Shares 3 48 3 44
2,127 (2022 2,127 shares)

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PARISH FUND BALANCES For the year ended 31 December 2023

This page does not form part of the audited financial statements

CHURCH REPAIR FUND BALANCES CHURCH REPAIR FUND BALANCES CHURCH REPAIR FUND BALANCES
As at 31 December 2023
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Use of Funds Deposited
Deposits by Parishes by Parishes with
with Diocese: Diocese:
Parochial Funds 4,846 4,733 Parish Loans 18 3
Funds on Deposit and other 4,828 4,730
assets
4,846 4,733 4,846 4,733
LOANS FUND BALANCES
As at 31 December 2023
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Use of Funds Deposited
Deposits by Parishes by Parishes with
with Diocese: Diocese:
Parochial Funds 4,746 4,396 Parish & Clergy - Loans 95 87
Other Sources 33 33 Other Loans 5 8
Funds on Deposit and other 4,679 4,334
assets
4,779 4,429 4,779 4,429

The Church Repair Fund and Loans Fund have been consolidated in the Financial Statements of the Rochester Diocesan Society and Board of Finance.

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