2020-12-31-accounts

THE CHURCH OF ENGLAND Diocese of Southwell & Nottingham SOUTHWELLAND NOThINGHAM DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TABLE OF CONTENTS For the ear ended 31 December 2020 Page Number Administrative Details Chairman's Foreword Legal Objects Trustees, Responsibilities Strategic Report-. Strategic aims Activities and achievements in the year Future plans Financial performance Principal risks and uncertainties 14 Independent Auditor s Report 17 Consolidated Statement of Financial Activitie5 21 Consolidated Income and Expenditure Account 22 Company Balance Sheet 23 Consolidated 8alance Sheet 25 Consolidated Cash Flowstatement 27 Notès to the Financial Statements 28 Growing Disciples Wider Younger Deeper

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS For the ear ended 31 December 2020 Trustees In accordance with the Companies Act 2006, The Statement of Recommended Practice 2019 ISORP 20191 and Financial Reporting Standard 102 IFRS 1021, the Trustees Ifor the purposes of charity lawl and Directors (for the purposes of company lawl durin8 the year and as at the date of signing follow.. PRESIDENT The Bishop of Southwell and Nottingham, Right Revd Paul Williams BISHOP'S COUNCIL AND STANDING CONMIThEE OF THE DIOCESAN SYNOD (BEING THE FINANCIAL EXECUTIVE OF THE DIOCESAN SYNOD AND THE BOARD OF DIRECTORS OF THE BOARD OF FINANCE) EX-OFFICIO The Rt Revd The Bishop ofsouthwell & Nottingham The Rt Revd Th@ Bishop of ShepNood Thevery RevdThe Dean ofsouthwell The VenerableThe Archde3con of Newark lallbl (resigned IS January 2020. currently vacantl The VenerableThe Archdeacon OF Nottingham lal The Chairof the Houseofclergy ofthe Diocesan Synod Revd Canon M Adamslto30 November 20201. Revd S Hustwayte (appointed 10 February 20211 lal The Chair of the House of Laity of the Diocesan Synod Imr M Wilson) lal Ibl The Chair of the Finance Committee (Canon M Arlington) lal Co-opted The Revd Pshaw ELECTED BY THE SOUTHWELL & NOTtINGHAM DIOCESAN SYNOD CLERGY1S1 NewarkArchdeaconry121 Revd A Fletcher Revd Canon M Fshouler LAITY191 Newarli Archdeaconry141 Mr P Stanley (resigned 29 September 20201 lal Mr R Brand Mr C Perrett Professor P Harris Nottingham Archdeaconry131 Revd Canon S Silvester Revd C Bourne Revd S HustrNayte lal Nottingham Archdeaconry151 Mr C Slater lal Mrs S Dunster Miss S Waterston Mrs J Gray Mrcm Bolton lal MemberoF the Finance Committee Ibl Memberofthe Board ofEducation PRINCIPALOFFICERSANDADVISERS Diocesan Chief Executive &CompanySecretary Diocesan Registrar. Bishop's Legal Secretary & Legal Adviser to the Board of Finance Mrm Lcooper BAIHonsl FCAATII MrsAJ Redgate LLB Growing Disciples Wider Younger Deeper Page I

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS For the ear ended 31 Decembor 2020 HEADS OF DEPARTMENTS Director of Discipleship & Ministry Director OF Partnerships & Mission Director of Education & Mission Director of Communications Director of Parish Support Director of Finance Revd Canon Dr R kellett 8Th{HO￿l, BSclHonsl. MA. PhD Revd D Mccoulough BAIHonslMA Mr N Frith BA MA NPQH lar¥K)inted2March20201 Mr R Ellis (resigned 31 May 20201 MrFMcNish Mrs R Al Bowes FCCA BANHERS INVESTMENT MANAGERS Lloyds Bank Nottingham CCLA Central Board of Finance of thechurch of En8land Cazenovecapitalmanagement Ltd Mayfair Capital Investment Management Ltd Ruffer LLP SOLICITORS CHARTERED SURVEYORS Rotheras. Nottingham Jas. Martin &Co, Lincoln Tanners, Nottingham Geo Hallam & Sons. Nottingham MINING. MINERALS. ENGINEERING & ENVIRONMENTALCONSULTANTS INSURERS Eccle5i3stical Insurance Group Mineral Surveying Associates AUDITOR BHPLLP 2 Rutland Parl< Sheffield S102PD REGISTEREDADDRESS Jiibilee House Westgate Nottingham NG25 OJH Growing Disciple5 Wider Vounger Deeper Page 2

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CHAIRM/KN'S FOREWORD For the ear onded 31 December 2020 The past year represented a time of exiraordinary challenge that has affected the lives of everyone living in Lhe diocese and all those who share in the mission of the Church acr055 our parishes. 5choD15 ar)d diverse communitie5. 2020 siarted well with some clear progress in areas of our diocesan mission as we continued to fulfil rhe aspiration5 set out wiLhin our Growing Disciples srraie8y. At the centre of all our plannin8 and praying isacommitmeni toannounc@ theGood News oFGod's love inlesuschristand to invite all people to respond to hi5 saving gracÈ. At the beginning of the second decade of the 21" century we are convinced that there 15 nothing berter anyonecan dowirh their life than become a follower oflesus Christ. This realiiy is seer) in the stories of people of all backgrounds and ages comin8 ro faith in God. It a150 lies at the heart ofdecision makin8, managemeni ofresource5. creative devÈlopments,aswell as ¢h&st@ady and faithful 0rn8oin8 ministry of every parish. A5 a diocese we are a mission enrerpris@wh05e roots are woven in the fabric ofwhai ha5 made ar)d Shaped communiti@5 acr055 the region over many ceniuries. We are also a dynamic network of local churches whose common purpose is to live for Christ in our present age, mutually supportive of one another above all in seeking fresh ways to make Christ known, as well a5 demonsrraiing his tran5formlng love in ways that can bring hope and healing to all. Asignificant expressiori of our God-given ministry is ihrou8h our Church schcK)ls who have excelled in Iheir mission through Lhe past year, serving with immense courage and crearivity through every rwisi and turn created by thÈcoronaviru5 pandemic. Tr4arch 2020 brought about a dramatic change to &vEry or)e living in our nation. as the firsL restrictionswere put in place to suppr@55 the risin8 raios of coronavirus inFeciions. Within a few wÈeks the government announced a national'lockdown. which meant that all in-person 5ervice5 were suspended. Within a shorr time cler8y. lay min15tÈrs and con8re8ation5 across the diocese found new ways to 5UStain Lhe life of the church and Serve the most vulnerable In our communities. This included new on-line services and small groups to nurture faith in such difficuli Limes. as well as practical carÈ with churche5 supplying foodbanks offering care packa8es and joining with other stake holders to provide Support to rhose whowere self- isolating or livingalone. Ourchurch buildings may have been closed for a time but rhechurch wasvery much alive. Comin8 Out of Lhe first'lockdown,, while recogni5ing the challenges that were still ahead until vaccinations could found. many churches established patterns of ministry that ir)cluded on-line and in-person Services and groups. In the meantime. the Bishops Core Team began to develop a series ol worki Slreams that would support the accelorated change creaied by the circumstances ol coronavirus. The Bishop'5 Council, with slgnificant engagement from Area Deans,lubilee House staff and otherclergy and lay leaders. was able to hÈlp shape thi5 work w rhat it can be most effective while we discern how God is LVUiPPirn8 his Church for a new season of fruitful ministry. The key streams of worl< do nor create a new operaiional strategy but are intended to facilitate the accelerated chan8e that is already happenin8 Within our commitment to Growing Disciples. Seven strÈams ofwork Transformation Change Appointments Increasing the numbÈr of clergy apwintments that enable si8nificant change rhar can facilltate growth.. many of theso will be time-5pecific appointment5 that ensure we do not reduce the level of stipendiary ministry while maintaining flexibility in future deployment planning in the mpdium rerm. New modols of Local Mi55ional L@adership- Developing mor& quickly our planning in tralnin8 afbd commissioning people who are equipped and called to lead l(Kal mission. within new Initiativ￿ and existing parishes. Youth and Children Growing Disciplos Task Group- To build on the good hÈriiage ol children and youth ministry in the diocese. a5 well as rhe recent experience wirh the YoungLife learning communities, toaddress thesignificant neod 10 revitali5eour mission amon8 and wilh children and youth.. Includin8 the new Fx>55ibiliriesworkin8 in partnershipwiih our Church schools. A task group wès esrablishEd under the leadership of the 8ishop of Sherwood, re5ulring in an application for srrategic Development Fundin8 to help facilitatÈa and ambitions programme of mission. Growing Disciples Wider Younger Deeper Pase 3

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CHAIRMAN'S FOREWORD Icontinuedl For the ear ended 31 December 2020 Communications Review- To review all aspeccs of our present communication strate8y in light of rhe newopportunities the past 12months has generatedwith social media plètforms. especially as we engageour'core consrituency as well a5 those prÈsontly beyond the life of the church Increasln8 Diversity- With renewed vision for a more diverse church. which includes addressing systemic issue5 that unintentionally limits our mi55ion and undermines the gospel. This is particularly in response to the issues raised by the death of George Floyd and the challenge it created for the Church. Well-being and Resilience Under the direction of the Principal for Well-being and Minisrry Development the diocese is developing new r&source5 ènd increasing awareness in addro55ing Relational, Physical. Mental and Spiritual Health. Prayer strream - Prayer is the engine of the Church in mission and in the cont&xt of increased challenge and change in society. we are 5eeklng 10 foster an inC￿a51n8 Èngagement with patterns of prayer rhat can 5UStain and inspire radical discipleship. Supporting the presenr and future shape of ministry in the diocese. weare grateFul that God has continued to call people Into new sph8re5 of service. as incumbents. curates, head teach@rs. into other forms of l&ader5hip in local churches and across chaplaincies. We have also been pleased iowelcome a new Diocesan Chief Executive. Director of Education. Senior Safeguarding Lead, as well as celebratin¥ tho consecration of a new 8ishop of Sherwood. All of these people bring new insights and gilts to the LIFÈ of the diocese at this time and we are deeply Ihankful lor the contribution they have made even viirh the limitations placed on bein8 able to meot in-person with con8re8ation5 and collea8ues. Ens(Jrin8 that we embed good Safeguarding practice5 into every part of the life of the diocese is esseniial to our mission. Our new Senior and A55lStant Diocesan Safeguarding Advisors have brought new skills and experience to this work in 2020. while we have a150 underiaken the first phase of the importani Past Ca5e5 Review 2. As the Church that bear5 the name of our Saviour,lesus Christ. we can be a community abounding in hope in a climaro that Is ea5ilyoverwhelmed by5adness and uncertainty. It iswhy,as theologianlurgen Moltmann puts It. Christian5 are'endLJringly capable of Furur&'. l am confidÈnt that for this reason we are well placed to respond to the unknown challenges that are facing our society in the months ahead, as well as the opportunities rhat God pre5enrs for his Church to brin8 eternal hope to our world. The extraordinary gener051ty across many of our churches in meeting Parish Share throLJgh such a difFicult year in 2020 hès been particularly hearioning. Of course some have struggled and rhe year to come will rernain challenging for all as we seek ro resource the rninistry we believe is needed. I pray thar our financial givin8 ever more reflects our hopÈ-filled vision OF a Church that has Good News for people overywhere, as we play our part in bringing Iosus-shaped change to our world, starlin8 alway5 in the nei8hbourhcth where we live, work and worship. With ever blessing The Rt Revd Paul Williams 8ishop of Southwell & Nottingham Growing Disciples Wider Younger Deeper Page 4

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT For the ear ended 31 December 2020 The Trustees. who are also Directors for the purposes of company law, present their report and the audired financial statements of the charity for the year ended 31 December 2020. The trustees h3veadopted the provisions of the Statement of Fiecommended Practice ISORPI "Accounting and Reporting by Charities IFRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been prepared accordance with the accounting policies set out in notes to the accounts and comply with the chèrity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland published in October 2019. The Board 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 Glebe Measure 1976., the repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings rvleasure 1972., the management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education Measure 1991., the custodian of permanent endowment and real property assets relating to trusrs held by Incumbents. Archdeacons and Parochial Church Councils Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Power51 Measure 1956. The Directors￿rustees are one and the same and in signing as Trustees they are also signing the strategic report section5 in their capacity as Directors. as This combined report satisfies the legal requirements for.. a Directors, Report of a charitable company, a Strategic Report under the CompaniesAct 2006 and a Trust&s' Annual Report Ljnder the Charities Act 2011 The strategic priorities of the Board are established by the Diocesan Synod in communication with Deanery Synods, Parochial Church Councils IPCCSI. and the Bishop of Southwell & Nottingham lin respect of his responsibility for the provision of the cure of souls). To this end, significant time and èffort is committed to communication between and with these bodies. aswell as with the church nationally," including an annual series of consultations on Specific matters relating to the priorities for the forthcoming year, including the Diocesan Budget. LEGAL OBJECts The principal object of The Southwell & Nottingham Diocesan Board of Finance I'the Board") is to promote. assist and advance the work of the Church of England in the Diocese of Southwèll & Nottingham by acting as the financial executive OF the 5outhwell ènd Nottingham Diocesan Synod. Growing Disciples Wider Younger Deeper Page S

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December2020 PUBLIC BENEFIT The Trustees are aware of the Charity Commission's guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Board. The Trustees believe that. by promoting the work of the Church of England in the Diocese ,of Southwell & Nottingham, it helps to promote the whole mission of the Church (pastoral, evangelistic. social and ecumenicall more effectively, both in the diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by.. providing facilities for public worship. pagtoral care and spiritual, moral and intèllèctual development, both for its members and for anyone who wishes to b8nefit from what the Church offers., and S8lect suitable accounting policies and apply them consistently Observe methods and principles in the Charities SORP 2019 IFRS1021", Make judgemenrs and estimates that are reasonable and prudent.. State whether applicable accounting Standards have been followed. subject to any material departures disclosed and explained the financial statements., 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 r@5ponsible for P<eeplng dequate accounting records that disclose with reasonable accuracy at any timè the financial position of the charitable company and enable them to ensure that the financial statement5 comply with the CompaniesAct 2006. promoting Christian value5 and service by members of the Church in and to their communities. to the benefit of individuals and society as awhole. They are also respongible for safeguarding the assets of the Board and hencè for taking reasonable steps for the prevention and detection of fraud and other irre8ularities. TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of the Board for the purposes of Company Lawl re responsible for preparing the Trustees, Report (including the Strategic Report) and the financial statement5 in accordance with applicable law and United Hingdom AccoLJnting Standards (United Hingdom Generally Accepted Accounting Practice). In so Far aware the trustees are aware.. There is no relevant audit information of which the charitable company's uditor is unaware.. and The trustees have taken all steps that theyought to haveto makethemselves aware of any relevant audit information and to establish that the auditor is aware of that information. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources. including the income and expenditure of thè charitable company for that period. The Trustees are responsible for the mèintenance and integrity of the corporate and financial information included on the Board's website. Legislation in the United ingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In preparing these financial statements the Trustees are required to.. Growing Disciples Wider Younger Deeper Page 6

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 TRUSTEE RECRUITMENT. SELECTION AND INDUCTION The annual budget has been set against this background. designed to provide adequate r&sources to fund the present, as well as to shape the future, in a way that is fit for thÈ mission task. As always it prioritised the appropriate provision of stipendiary parish clergy and licensed lay workers across the diocese. In terms of our future shape, it recognised the changing patterns of ministry deployment. the n&d to support local leadership in the deaneries and to engage in partnership with various civic. community and business interests. Trustees are members of the Bishops Council & standing Committee and are selected as set out in the section on Structure and Governance. Trustees are given induction at the outset of the triennium and at other times as appropriate. They ère also informed beforè seeking membership and, at all other relevant times. of the role and function of the Committee. Some staff hold the ritle of 'Director', but thi% relates to their Function within the organisation and hag no legal meaning within the terminology associated with the Companies Act. All Trust￿5 are requir&d to sign the code of practice and maintain their entry in the record of declarations of interest and loyalty. The Boards strategy for achieving its objectives IS to adopt a methodology of limiting central source5 of expenditure in Favour of both releasing funds for mission and minimising the increase in Parish Share. The Board continues to maintain the 50und financial structure needed to enable it to continue supporring the clergy and lay workers through the payment of stipends, managing parsonages and other ministerial housing. It provides resources in support of the ministry of both cler8y and lay people in parishes across the diocese. VOLUNTEERS The Board i5dependent on the huge number of people involved in church activities both locally and at dioCe￿N level. We believe that the number of active volunteers lor volunteer hour51 given to the mission and ministry of the church is a key indicator of the health of the church. The service provided to a community through church volunteering also has a significant impact on peoples relationship to the church particulèrly in time5 of crisis. Within this cont&xt, the Board greatly values the considerable time given by all the committee members across the diocese in pursuit of the mission OF the Board. OBJECTIVES FOR YEAR The objective of the Board is to provide financial resources for the achievement of the prioritie5 of the Bishop and Diocesan Synod. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR 2020 threw up challenges for all Dioceses but we adapted to digital communications and social media channels to share inspirations and news with communities and followers across the diocese. During the y8ar we have developed the workplace chaplaincy further by supporting a new chaplaincy team in Sherwood and in partnership with Nottinghamshire Police have relaunched chaplaincy support ro the force. Transforming Notts Together has tapien on more staff to develop Near Neighbours community cohesion work and. real MISSION STATEMENT Our mission statement calls for each member OF the church at every level of diocesan life to join together in the transforming mission of God, makin8 their own unique contribution to living worship. growing disciples and seeking justice. STRATEGIC AIMS The Board resourceg the Christian tasks of mission and ministry through 250 parishes and other networkis. Growing Disciples Wider Younger Deeper Pa8e 7

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl For the ear ended 31 December 2020 with Covid Recovery funds, established Grief and Bereavement Support Workshops and supports 10 churches exploring setting up bereavement groups or Griefcafes. We have algo supported the BAME Advisory Group in the diocese. met with Majority Black Led Church Leaders Nottingham and participated in Nottingham Citizens, hosted meetings in response to the killing of George Floyd. After an encouraging starr to 2020 in terms of churches engaging with givin8 initiatives. Covid-19 struck and all normal processes ground to a halt. After a few weeP<s, as we adjusted to the new world of lockdown. we quickly endorsed and publicised the C of E's online giving offering through Sumup and Give a Little. with an encouraging take up by parishes. This has continued to grow throughout the year. and enabled churches to bring in donation5 from a new source as they lost income from envelope giving, hall rental and fundraising events. This has also allowed churches to place "donate now buttons on their websites and ACNY entries, place QR codes across social media and printed materials and 8row in rheir learning of di8ltal platforms for giving in a way that would nèver have b￿n envisaged under normal times. the Rev d Andrew Emerton. Andy began his journey to ordination from SoLJthwell Minster and travelled north to a service at YorP( Minster. which was lived streamed to thousands of viewer5 from across the globe, overcoming some of the Social distancing restrictions that were in plèce at that time. This year ordinations, which usually tal<e place in july. were delayed until September, and by necessity. took on a very different feel. With attendance inside the minster still largely prohibitèd, our celebrations had a more reflective tone and WÈ witnessed a most challenging return to school for our staff and pupils, which was reported by ITVCentral News who visited HucK(nall National CofE Primary school to see the wellbein8 and safety measures put swiftly into place for pupils attending classes after many months of home schoolin8. Both Bishops have been interviewed by BBC Radio Nottingham throughout thè year, offering messages of hope and support in these difficult times. Our Christmas campaign,Light in the Dar￿neSs. saw Bishop Paul in more reflective mood a5 he brought this most challenging year to its close. Many thousands of people watched thisyear svideo and enjoyed a series prayers and reflections we shared throughout the Advent period. The Discipleship and Ministry team has continued to be active in training and developing both lay and ordained ministers moving its provision promptly to online teaching to meet the challenges of the COVID-19 restrictions. They ran a successful diocesan conference online with over 200 people in attendance and Bishop Emma Ineson speak on Godly Ambition, and the Church Schools Leaders Conference was also held on Zoom. They continue to develop vocations to lay and ordained ministries welcoming 14 new trainee for Licensed Lay Ministry and 11 new ordinands. Despite the pandemic. 4 New As we enter 2021. we are encouraging churches to prepare for giving initiativeg once more. without the social contact of previous years, but utilising the enthusiasm and dedication of hard worhing folk in our churches and communities to grow generosity through discipleship and learning. After quiet summer months, September brought a flurry of updat8s and inspiring news stories. beginning with St. Wilfred's Church, Scooby and Saint's Church, Babworth, who were both featured on 8BC's Songs of Praise on Sunday 13, September as part their 400 years Pilgrim Centenary Celebrations. Inthe same month, wecelebrated the ordination of the new Bishop of Sherwood. Growing Disciples Wider Younger Deeper Page 8

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT Icontinuedl Forthe ear ended 31 December2020 Worshipping Communities were started in 2020 bringing the total launched to 21. 2020 2019 Percentage of parish Share received 87.3W. 94.54> We supported 5 members of the clergy with their retirement plhns and asslsted with moving 18 clergy families in housing in the Diocese. Average return investments rate 2.7590 3.3 on FUTURE PLANS In 2021, the focus on our response to climate change will continue. aiming to cut our carbon footprint and promote eco church nd to encourage further our understanding of caring for creation as central to whole life discipleship. The Diocesan Advisory Group will also instigate a strategy for our church building5 across the Dioc8se and aim to improve our church building carbon footprint and increase awarèness and use of environmental products and services. Both of the KPIS above have been impacted by the effect of Covid 19. but we appèar to have weathered the storm. as increased economic activity is on the horizon. As required. Board reviewed the investment returns with the investment managers in November 2020, and the Board decided to change one of the investment managers nd leave the targeted return on the investments unchan8ed. The investments in renewable energy are continuing to show a return. There will be continued need to work with cross agency partners to tackle homelessnegs and modern slavèry, and to support local church responses to the needs of rough sleepers refuge￿ and a5yIu seekers, in the city and county. FINANCIAL PERFORMANCE The main income to the Board is from parishes giving Parish Share, which has decreased by £226.000 this year. The Trustees are immensely grateful to all the parishes who. during the Covid 19 pandemic continued to contribute to parish share, and supported Ministry in the Diocese. We cannot achieve thi5 Wlthout their support. We will a150 support the ministry of chaplains and sector ministries by holding a chaplaincy gathering with the Bishop of Sherwood in the Summer and aim to appoint a chaplain in Hucknall to complete our network of chaplains, and we are exploring ways supporting the partnership betw*n churches and schools. We will also encourage parishes to consider local models of town centre or high street chaplaincy such as those in Beeston and Sherwood. 2020 £000 5.438 2.149 2019 £000 5,664 1,871 1 INCOME 0/0 of Total 50.2 19.8 Parish Share Archbishops, Council Allchurches Trust Fees Investment income 140 136 278 315 1,089 ' 1.278 KEY PERFORMANCE INDICATORS The Board regards its key performance indicators ag follows.. 10.0 The Trustees acknowledge with th3nks the annual distribution from Allchurches Trust. The other grants received from Archbishops Council dLJrin8 2020 are £601.000 Strategic Development Fund monies. which 15 matched funded by the Board and £1.266.000 Lowest Income Growing Disciples Wider Younger Deeper Page 9

SOUTHWELL & NorfiNGHAM DIOCESAN BOARD OF FINANCE TRUSTEIS. REPORT Icontinuedl Forthe ear ended 31 December 2020 Communities Fundin8 to support mission in our poorest parishes. We also received a Covid 19 Sustainability grant from Church Commissioners of £250,000 to contribute towards our exceptional 10sses this year. and we are in receipt of Strotegic Ministry funding for additional curates of £23.000. Board. whose value amounted to £34.5 million 12019.. £37.5 millionl. 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 Board. Restricted and endowment funds As set OUL in note 23 the Board holds and administers a large number of restricted and endowment funds. ￿ at 31 December 2020 restricted funds totalled £8.8m12019'. £8.4ml and endowment fund5 totalled £58.8m 12018". £56.4ml. Net out80ing resources in the education restricted fund. before investment gains, amounted to £31.000 12019- £33.0001 and resources were mainly used to finance the salaries of those Education Department staff with responsibility for church schools and academie5. Ouè to the Covid 19 pandemic, and the massive changes in operations due to remote working, many things were done differently in 2020, and the effect on the budgeted expenditure and income was huge. The Board took advantage of the Governments job retention scheme. which covered £95.000 of salary costs. and all our staff moved to remote working. We invested in online meeting platforms and internet based telephone systems and the support for Ministry in the Diocese continued. The Board managed net gain before investment gains and losses of £333,000 in the general fund 12019." loss £210.0001, largely due to the Covid Sustainability Funding we received from Church Commissioners. Designated funds The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserve5 are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer required. A description of each rÉ%erve together with the intended use of the reserve is set out in note 23. At 31 December 2020totaldesignated reserveswere£lO.6m 12019.. £10.3ml. There is a balance of £1.9m set aside in a designated Fund to finance the funding shortfall on the closed lay staff defined benefit pension scheme to eliminate the deficit by March 2025. The capital values of investment5 have had a better year than last. and the year end position of £42.531.000 is an overall increase of £1.334.000. The investments have rallied aFter the valuation drop during March 2020, but there has been an impact on investment income in 2020. The capital values of agricultural land has remained the same. The unrealised gain on investments at the year end was £2,S36.000 The Board received £1.448,463 during the year relatin8 to the sale of glebe assets. REVIEW OFTHE BALANCE SHEET The Trustee5 consider that the bèl3nce sheet. together with detai15 in notè 22. show that the restrictèd and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net 3sset5 at the balance sheet date totalled £80.626.00012019'. £77.886.0001 it must be remembered that included in this total are a considerable number of properties, mostly in use for the ministry and mission of the Free reserves The Board of Finance has considerable responsibilities includins the remuneration of over 120 stipendiary clergy. the employment of 65 full or part time staff and the upk<eep of nearly 200 houses. Most of the Board's income is voluntary with half coming from Parish Share and the balance made upofgrant income from Archbishops, Council and income investments and oth8r sources. In light of this and the flow of income. theTrustees havedeterminèd that Growing Disciples Wider Younger Deeper Page 10

SOUTHWELL & NortlNGHAM DIOCESAN BOARD OF FINANCE TRUSTIES. REPORT Icontinuedl FOF the ear ended 31 DecembÈr2020 it is prudent to hold free reserves at leasc ÈqLJivalent to gen&ral fund expenditure over two months i.É. £l.Sm. +4%. The Diocese has historically been an owner of agricultural land, currently 3,721 acres including 3 farms. The growth in value of agricultural land Since 2006. has resulted in nearly 50010 of the total value of assets being in land. The current policy is to reduce the amount of land over time when rhe opportunity arises to sell freehold land.. the proceeds being invested in a wide range of financial assets which are more liquid and of a higher annual income retLJrn than land. A small investment is also held in a specialist commercial property fund managed for charity clients. Dunham House. a residential apartment block in Southwell. is managed to produce a rental return. At 31 December 2020, the Board of Finance's free reserves were £3.3 million12019 £3.4ml. The trustees consider that with the continued uncertainty around the economic situation together with the changes in thé way that Diocese are resourced from Church Commissioners. and the continuing pressure on parish share, the increased holding of frÈe reserves is prudent. Subsidiaries During 2015. the Board set up twosubsidiary companies. SND8F Solar Limited is a wholly owned subsidiary rhat manages the £226,000 invested in the installation of solar panels on 50 benefice houses. Wind FX Limited is 600h owned by the Board and operates a 500F<w wind turbine. The investments into these companies, by way of loan capital, totalled £1.090.000. Funds which may be needed for working capital in the short-term are held a5 deposits with the Central Board of Finance of the Church of England and the Board's banpiers, Lloyd5 Bank plc. Investment policy and performance The Board empowered by its Memorandum of Association to invest monies nor immediately required for its purposes. In addition. the Board acts as tru5t8È of a number of trust funds, and these must be invested in accordance with the related trusts. The Board's policy is to review regularly the assets of each fund. Notes 22 and 23 provides details of the assets of each fund. together with the relat&d purposes, and notè 16 summarises the movements in investments during the year. FUNDS HELD ON BEHALF OFOTHERS As Custodian Trustee.. The Board is Custodian trustee of assets held on permanent trust by virtue of the Parochial Church Counci15 Ipowersl 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 ag the Board does not control them. and they are segregated from the Boards own assets by mehns of a separate b&nl< account and accounting system. Further detai15 of financial trust asset5. whose market value amounted to £8.4m at 31 December 202012019." £8.5ml. are available from the Board on request. The implemenration strategy for the di(Kes3n Jssets is managed by a subgroup of Finance committee on behalf of Bishop's Council. The strategy is to grow the value of the diocesan asset5 and their annual income with a due regard to the level of ris associated with the ownership of particular assets. The Board appoints managers to advis@ and manage investments who are instructed to apply the ethical investment policy of the Church of England. Investment managers are tasked with a return of RPI On behalf of Schools." The Board of Education las incorporated within the Board) receives conrributions from 80vernors of church schools within the Diocese in connection with major repair and capital projects to church schools and also Government 8rants in connection with the same. The Board of Education administers th@semoniesas managingagent and makes Growing Disciples Wider Younger Deeper Page 11

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 appropriate payments to contractors for work carried out. At national level the Diocese relates to the Archbishops, Council, the Church The monies do not belong to the Board of Education and a5 Such the receipts and payments are not treated as income and expenditure in the Statèment of Financial Activities. Any monies held at the balance sheet date are treated as creditors on the balance sheet. The amount included in creditors as at 31 December 2020 is £104,371 12019.. £133,715). The income and expenditure relating to school projects not rèflected in the Statemenr of Financial Activities amounted to £444.635 in 2020 and £406,877 in 2019. Commissioners and the ChLJrch of England Pensions Board. Further information can be found at www.church-of-en land. The financial transactions of these bodies do not Form part of these financial statements. Each diocese is divided into benèfices which are made up of parishes. The priest of a benefice is an office holder who shares the cure of souls with the Bishop. Matters relating to finance and parish owned property in a parish. are the responsibility of the Parochial Church Council, each of which is an individual charity separate From the Oiocese. Benefices are grouped together in nine Deaneries which are units of mission, conduit of communication and whose memberselect the membersofGeneral and Diocesan Synod. GRANT MAKING POLICY Grants are made to the National Church to cover a proportion of its central costs and Iso to cover the cost of training for ministry. Grants are paid to other connected charities and to other charitable projects which appear to the Board of Finance to support the furtherance of the Board of Finance s objects. Southwell Minister is the cathedral church OF the diocese and is itself a separate legal entity. Copies of its annual report and financial statements may bè obtained from the Cathedrèl Administrator, Southwell rvlinster. Church Street, Southwell, Nottinghamshire, NG25 OHD. Mission Development Funding from Archbishops, Council hès now ceased. so the designated fund will be used to support the existing projects. The Board of Finance 3nd Diocesan Synod-. Within the Diocese there are two major bodie5 - the Diocesan Synod and the Board of Finance.. the membership of both is coterminous Southwell and Nottingham is one of 41 dioceses in the Church of England covering the whole of Nottinghamshire and a small section of South Yorkshire and North Leicestershire. It Is administered through the 8oard. a charitable trust company limited by guarantee. The Diocese is arranged as 2 archdeaconries. Newark covering the north part with 4 deaneries and Nottingham the south with 5 deaneries. In total there are some 250 parishes. Board of Finance.. The company, Southwell & Nottingham Diocesan Board of Finance, was formed to manage the financial affairs and hold the assers of the Diocese. It was incorporated on 5th June 1891 as a charitabl@ trust company limited by mèmbership guarantee (No. 341651 and its governing document5 are the Memorandum and Article5 of Association. The Board of Finance is re8iStered with the Charity Commission (No. 2493591. Each Diocese is a separate entity led by the Bishopand is governed by thecanons ofthe Church of England and the Acts and Measures of General Synod as well as state legislation that relates to companies and charities. In Southwell and Nottingham, the Diocesan Bishop is assisted by the SufFra8an Bishopofsherwood. The company, originally called the Southwell Diocesan Finance ￿SOcIation, changed it5 name to the Southwell Diocesan Growing Disciples Wider Younger Deeper Page 12

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 Board of Firnance on 18 january 1932. On 28 February 2006, the company changed its name to thesouthwell & Nottingham Diocesan Board of Finance. from the Archdeaconry of Newark) and 10 lay persons elected by the members of the House of Laity representing deanerie5 16 from theArchdeaconry of Nottingham and As a memberofthe Board, each member of Synod has a personal liability limited to £1 under their guarantee as company members in theevent ofits beingwound up. 4 from theArchdeaconry of Newark) and up to4 co-opted members of Diocesan Synod. Under the constitution of the Diocesan Synod. Bishop's Council has the following functions.. Diocesan Synod.. Diocesan governance is by Diocesan Synod which is an elected body with representation from all parts of the diocese. Membership consists of ex-officio members, including the Bishops and Archdeacon5. clergy members elected by the house5 of clergy in Deanery Synods. lay persons elected by the hoLJses of laity in Deanery Synods. plus up to 20co-options to plan the business of the Synod. to initiate proposals for action by the Synod and to advise it on matters on policy.. to advise the Diocesan Bishop, on any matters which he may refer to the Council., subject to the directions of the Synod, to transact the business of the Synod when the Synod is not in session., to appoint members Of committees or nominate individuals for election to committees., and to carry out such functions as the Synod may delegate to The Diocesan Synod usually meets twice a year. Its role is to,. consider matter5 affecting the Church of England in thè diocese., act as a forum for debate of Christian opinion on matters of religious or public interest., advise the bishop where requested., deal with matters referrèd by General Synod.. and provide for the financing of the diocese. Decision Making Structure.. Corporate priorities and the overall financial strategy for the Di(Kese, in its primary object to promote, assist and advance the work of the Church of England within thè Diocese of Southwell ar)d Nottingham. are set by the Diocesan Synod and the Board. Many of Diocesan Synod's r@sponsibilities have been delegated to Bishop's Council. The company meets once a year in general meeting to receive and approve the annual report and financial statemènts and to appoint the auditors. The Diocesan Synod each year receives and agrees the annLJal budget, prepared and approved by the Board. The Trustees. meeting within the context of the Bishop's Council & Standing Committee. hold up to eight meetin85 during the year to formulate and coordinate policies on mission. ministry and finance. Trustees rely upon the Diocesan Chief Executive and their team six departmental directors for the delivery of theday to day activities of the company. The The Bishop's Council land Standin8 Committee of the Diocesan Synodl.. The members of the Bishop's Council are the Board of Trustees and Direcrors of the Company. Bishop's Council consists of 8 ex officio members (the Diocesan and Suffragan Bishops.. 2 Archdeacons., the Dean.. the Chairs of the House of Clergy and House of Laity," and the Chair of the Finance Committee). 5 clergy elected by the House of Clergy from among their number 13 from theArchdeaconry of Nottingham and 2 Growing Disciples Wider Younger Deeper Page 13

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTIES, REpofff Icontinuedl For the oar ended 31 December 2020 Diocesan Chief Executive is given specific and general delegated authority to deliver the business of the Board in accordancewith the policies framed by the Trustees. Cotjncil are also the members of 2 statutory committees.. detail of diocesan finance. to set up the Audit Committee which advises the Finance Commirtee and thereby Bishop'5 Council, in the discharge the Trustees, re%ponsibilities for accounting policy, internal control, financial reporting and risk management. Parsonages Committee, which is responsible for determinin8 policy and making major decisions concerning the man&8ement of parsonage houses in each benefice. team vicarages and houses owned by the Board of Finance. Diocesan Mission and Pastoral Committee, which is responsible for the task of recommending pastoral reorganisation to the Bishop. Remuneration ey Per50nnel.. Emoluments of higher-paid employees are determined by a remuneration group consisting of the Chair of the House of Clergy, the Chair OF the House of Laity. and the Chair of the Finance Committee. A job evaluation scheme is used to determine the salary grades of employed posts. Office holders are paid either the Diocesan stipend or that advised by the Archbishops. Council acting as the Central Stipends Authority. management. Other statutory committees include.. Diocesan Advisory Committee, which advises on matters affecting church buildings and places of worship including the granting of faculties. the use and care of places of worship and their contents and the care of churchyards. Southwell & Nottingham Diocesan Board of Patror)aEe. which is constituted under the provisions OF the Patronage (Beneficesl Measure 1986. GOING CONCERN The financial statements have been prepared on a going concern basis as the trustees believe that, despite the uncerrainty of the economic impact of the Covid 19 virus pandemic, the Board has sufficient monetary reserves to meet all their obligations as they fall due. The trustees consider that given the level of inve5tmentg and reserves held the going concern basis is appropriate. PRINCIPAL RISHS The Trustees are responsible for the identification, mitigation and or managemènt of ri51< To achieve this, a register of all the risP<s identified is maintained and. alongside it. a rnanagement nd mitigation srrategy formed. Thi5 IS subject to review by the Trustee5 on an annual b35lS Wlth the responsibility for delivery of the mitigation strategies identified by it, being delegated to the Chief Executive. In addirion to the statutory committees Bishop's Council has set up the Finance Committee. which has written terms of reference. to advise it on all financial matters. The Finance Committee meets regularly. approximately five times each year and work5 c105ely with the Diocesan Chief Executive and Director of Finance. The Finance Commitree has decided that in order to give considered advice to the Bishop's Council and to understand the Growing Disciples Wider Younger Deeper Page 14

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 The risk register identifies three areas where the risk of either failure to act or thè impact of the events is considered 'high'. These areas and the associated mitigation strategies are detailed in the table below.. Ris1< Type l Risk Reputational Safeguarding & Inclusion of children and vulnerable adults.. currerit safeguarding incident by an individual associated with the Diocesè or any church in our Diocese and adverse publicity relating to safeguarding failures in the past or present. Mitigating activity Safegu3rding advice is provided by a dedicated Safeguarding team Policies are ali8ned with those of the national church Training is compulsory for all relevant stafFand office holders Financial Parish Share collection Is considerably less than IOO°h. Collection statistics are produced and circulated on a monthly ba51S to Deanery & Diocesan personnel Deanery finance per50nnel are expressly taslied with identifying. reporting on and supporting those parishes where there is considered to be a significant ris of under-collection Reputational IT.. System failure. and Financial The disaster recovery plan is reviewed on an annual basis Backups are made on a regular basis DISCLOSURE OF INFORMATION TOTHE AUDITOR We. the Director5 of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that.. there is no relevant audit inform3tion of which the charitable company s auditor is unaware, and we have tak(en all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant information and to establish that the company's auditor is aware OF that information. In approving the Trustees Report. we also approve the Strategic Report included therein, in our capacity as company directors. Growing Disciples Wider Younger Deeper Pag@ 15

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT Icontinuedl For the ear ended 31 December 2020 APPOINTMENT Ok AUDITORS The re-appointment of BHP LLP as auditor to the Board will be proposed at the Annual General Meeting. BYORDER OFTHETRUSTEES The Right Revd Paul William5 Chairman Date.. Growing Disciples Wider Younger Deeper Page 16

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE INDEPINDFNT AUDITOR'S REPORTTOTHE MEMBERS OF SOUTHWELLAND NOThINGHAM DIOCESAN BOARD OF FINANCF. Icontinuedl Opinion We have audited the financial statements of Southwell and Nottingham Diocesan Board OF Finance Ithe'parent charitable company I and its subsidiaries (the 'group'l for the year ended 31 December 2020 which cornprise the Consolidated Statement of Financial Activities, the Consolidated Income and Expenditure Account. the Company and Consolidated Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounring policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kin8dom Accounting Standards, including Financial Reportin8 Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). ethical requirements that are relevant to OLJr audit of the financial statements in the Ul4, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is 5uffici8nt and ppropriate to provide a basis for our opinion. Conclusions relating to going concern ln auditing the financial statements, we have concluded that the trustees use OF the going concern basis of accounting in the prepararion of the financial statements is appropriate, Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the group s or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In our opinion the financial statemernts.. give a true and fair view of the state of the group's and parent charitable company's affairs asat 31 December 2020, and of the groups incoming resources and application resources, including its income and expenditure, for the year then ended., have b￿n properly prepared in accordance with United Hingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 Our responsibilities and the responsibilities of thè trustees with respect to going concern are described in the relevant sections of this report. Other informarion The other information comprises the informètion included in the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within rhe trustees, report. Our opinion on the financial Statements does not cov8r the other information and. except to the extent otherwise explicitly stated in our rèporL, we do not express any form of assurance conclusion thereon. Our responsibility to read the other information and, in doing so, consider whether the other information is materially Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUF<II and applicable law. Our re%ponsibilities under those standards are further described the Auditor's respon5ibilitiÈs for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the Growing Disciples Wider Vounger Deeper Page 17

SOUTHWELL & NorriNGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF SOUTHWELLAND NO￿INGHAm DIOCESAN BOARD OF FINANCE Icontinuedl inconsistent wlth rhe flnancial sratements or our knowledge obtained in the course of the audit or otherwise appears to be matèrially misstated. If we identify such maLerial inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, bèsed on the work we have performed. we conclude that there is a material mi£gtatem@nt of this other information. we are required to report that fact. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us.. or the pèrent charitable company s financial statements are not in a8reement with the accounting records and returns., or certain disclosures of directors, remuneration specified by law are not made., or We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the wor undertaken in the course of the audit.. we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustee5 responsibilities statement, the trusteès Iwho are also the direcrors of the parent charirable company for rhe purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they 8ive a true and fair view. and for5uch 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. the information given in the trustees, report (incorporating the strategic report and the directors, reportl for the financial year for which the financial statements are prepared is consistent with the financial statements.. and the strategic report and the directors report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and its Ènvironment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors, report. In preparing the financial statements. the trustees ère responsible For assessing the groups and parent charirable companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unle55 the Irustee5 either intend to liquidate the 8foLJP or parent charitable company or to cease operarions. or have no realistic alternative but todo so. We have nothing to report in respèct of the following matters in relation to which the CompaniesAct 2006 requires us to report to you if, in our opinion.. Growing Disciples Wider Younger Deeper Page 18

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF SOUTHWELLAND NorriNGHAM DIOCESAN BOARD OF FINANCE Icontinuedl Auditor's responsibilitie5 for the audit of the financial statoments We have been appointed auditor under the Companies Act 2006 and report accordance with this Act. responsibility for the compliance of laws and regulations. We also reviewed legal expenses. We addressed the risP( management override of internal controls, including the testing of journals and review of the nominal ledger. We evaluated wheLher there wa5 evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud. Our objectives are to obtain reasonèblè assurance about whether the financial statements a5 a whole are free from material misstatement. whether due to fraud or error. and to issue an auditors report that includes ouropinion. Reasonable assurance is a high level of assurance, but 15 not a 8uarantee that an audit conducted ir) accordance with ISAS IUHI will always detecc a material misstatement when it exists. Misstatements can arise from fraud or error and are considered mat8rial 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. Because of the inherent limitations of an audit, there is a risk that we will nor detect all irregularities. including those leading to a material mi5Statement in the financial statements or norn-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurrin£ due to fraud rather than error. as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. Irregularities, including fraud. arè instances non-compliance with laws and regulations. We dosi8n procedures in line with our responsibilities. outlined above. to detect material misstatements in respect of irregulariti￿, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities. including fraud is detailed below.. A further description of OLJr responsibilities is available on the Financial Reporting Council's website at.. htt www.fr Wor Audit Audit-an and- uidance/St uidance-for- auditors/Auditors-res onsibilities-for- audit/Descri n-of-auditors- on r-audit.as This descriprion forms part of our auditor's report. We gained an understanding of the legal and regulatory framework applicable to the charitable company ènd the sector in which it operates. and considered the risk of such regulations. including fraud. We designed audit procedures to respond to the risk. Use of our report This report is made solely to the charitable company s members, as a body, 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 companys members those matters we are r@qLJired to state to them in We focused on laws and regulations relevant to the charitable company which could give rise to a material misstatement the financial statements. Our testing included discus5i0ns with mana8ement, trustees. and those staff with direct Growing Disciples Wider Younger Deeper Page 19

SOUTHWELL& NOTtINGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPOFtFTOTHE MEMBERS OFSOUTHWELLAND NOThINGHAM t)IOCESAN BOARD OF FINANCE Icontinuedl anauditor's report and Forno other purpose. To the fullest exrent permitted by law, wedo not accept or assume responsibility to anyone other than the charitable company and the charitable company's m@mber5 as body, for our audit work, for thi5 report. or for the opinions we have formed. lane Marshall (Senlor Statutory Auditor) for and on behalf OF BHPLLP 2 Rutland Park Sheffield SIO 2PD Date.. 14 June 2021 Growing Disciples Wider Younger Deeper Page 20

SOUTHWELL & NorfiNGHAM DIOCESAN BOARD OF FINANCE CONSOLIDATED STATEMENTOF THE FINANCIALACTIVITIES For the year ended 31 Docember 2020 Total funds 2020 Total funds 2019 Unre5trlcted Funds Restrlcted Funds Endowment Funds Note £'ooo £'ooo £'ooo £'ooo £'ooo Income and endowtnents from Donations D&anery share ArGhbi5hops' Council Other donations 5.438 1,547 143 5,438 2,149 144 5,664 1,871 139 602 Charitable activitie5 633 634 777 Other aclivilie5 452 454 449 Investrnenls 862 227 1.089 1.024 1.278 554 Oiher 536 338 150 9,611 1,171 150 10.932 10.732 Expenditure on Raising funds Charitable activit￿S CIBigy pension scheme movemenl Church schools & Diocesan projeGIs Olher 340 8,916 64 404 445 673 9,589 9,766 11,4551 27 151 236 195 342 10 22 258 9,278 1,124 161 10,396 9,293 Net Incomellexpenditurel before Inv8stm8nt galns 333 47 158 536 1.439 Nel galns on investments 362 340 1,834 2,538 2.836 Net incomellexpenditurel Transfers between furtds 695 387 1.990 3,072 4,275 14 13681 Non-conlrolling inlÈrÈsl Other rècognlsed galnsll1055&$1 Gainsll105se51 from ch3nges in financial a55umplions on défined benefit schÈmÈ 12 13311 13311 13511 Net rnovetnent In funds 141 2,358 2.740 3,936 Total funds brought forward 13,023 8,414 56,449 77,886 73.950 Totsl funds carrfed fotward 21 13,019 8.800 58,807 80,626 77,88S All 3Ctivitie5 derive from continuin8 activities. A surplus of É2.973 15 attributable to the non-controlling inte￿5t. with the balanceof £533.000 attributableto rhe parententity.ThÈnoteson page528to63 form partof the financial 5taLemenis. Growing Disciples Wider Younger Deeper Pa8e21

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2020 Total 2020 £'ooo Total 2019 £'ooo Total incomin8 resources Resources expended 10.782 110,4021 10.482 110,7481 Operating Ideficitllsurplus for the year Net 83inslllosseslon investments 380 702 1266) 1,569 Net incomellexpenditurel for the year 1,082 1,303 Non-controlling interest 12 Other comprehensive income.. Net asseLs transferred fromlltol endowments ILossesl/Gains from changes in financial assumptions on defined benefit pension scheme (3681 1318) {3311 (3511 Total comprehensive incomellexpenditurel 382 646 The income and expenditLJre account is dèrived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities. Growing Disciples Wider Younger Deeper Page 22

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE BALANCE SHEET- COMPANY ONLY At 31 December 2020 Company Number- 00034165 2020 £'ooo 2019 £'ooo Note £'ooo £'ooo FIXEDASSETS Tangible assets Investments 15 16 38,386 42,531 37,712 41,197 80,917 78,909 CURRENT ASSEts Debtors Cash at bankand in hand 18 1,912 1,765 1,835 541 3,677 2,376 CREDITORS.. amounts falling due within one year 19 11,7701 {1,0691 NET CURRENT ASSETS 1,907 1.307 TOTALASSETS LESS CURRENT LIABILITIES 82.824 80,216 CREDITORS.. amounts falling due after more than one year Pension scheme liabilities Other creditors 27 20 12,043) 1143) 12,1611 11431 12,1861 (2.3041 NET ASSEts 80,638 77,912 FUNDS Endowment funds Deficit on clergy pension scheme 59,254 14471 57,270 18211 58,807 56,449 Restricted income funds Unrestricted income funds-. General fund Designated funds Defined benefit pension scheme 8.725 8.353 4,500 10,577 11,9711 4,504 10,315 11,7091 13,106 13,110 TOTAL FUNDS 21 80,638 77,912 Growing Disciple5 Wider Younger Deeper Page 23

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE BALANCE SHEIT- COMPANY ONLY Icontinuedl At 31 December 2020 The Company Balance Sheer forms part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on and signed on behalf of the Board by.. a g ,JLu61(.J JJl_ L The Bishop of Southwell & Nottingham Director Canon M Arlington Director Growing Disciples Wider Younger Deeper Pa8È 24

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE CONSOLIDATED BA￿NCE SHEET At 31 December 2020 Company Number- 00034165 2020 2019 Note £'ooo £'ooo £'ooo £'ooo FIXEDASSETS ' Tangible assets Investments 39,737 42,531 39,131 41,197 16 82,268 80,328 CURRENT ASSETS Debtors Cash at ban1< and in hand 18 1,026 1,939 883 709 2,965 1,592 CREDITORS: amounts falling due within one year 19 {1,8451 11.1541 NETCURRENT ASSETSIILIABILITIESI 1,120 438 TOTALASSETS LESS CURRENT LIABILITIES 83,388 80,766 CREDITORS.. amounts falling due after more than one year Pension scheme liabilities Other creditors 27 20 12,0431 17191 12,161) 1719) (2.7621 12,8801 NET ASSETS 80,626 77.886 FUNDS Endowment funds Deficit on clergy pension scheme 59.254 1447) 57,270 18211 58,807 8,800 56,449 8,414 Restricted income funds Unrestricted income funds= General fund Designated funds Defined benefit pension scheme liability 4,413 10,577 {1.9711 4.417 10.315 11,7C)91 13,019 13,023 TOTAL FUNDS 21 80,626 77,886 Growing Disciples Wider Yotjnger Deeper Page 25

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CONSOLIDATED BALANCE SHEET Icontinuedl At 31 December 2020 The Consolidated Balance Sheet forms part of these financial statements. The financial statements were approved by the 8oard of Trustees and authorised for issue on and signed on behalf OF rhe Board by.. JaLI(_J AA_L. The Bishop of Southwell & Nottingham Director Canon M Arlington Director Growing Disciples Wider Vounger Deeper Page 26

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CONSOLIDATED CASH FLOW STATEMENT For the ear ended 31 December 2020 2020 £000 2019 £000 £000 £000 Net cash outflow from operatin8 activitie5 Cash flows from investing activities Dividend5. Interest and rent from investments Interest paid Proceeds from the sale of.. Tangible fixed a55ets Investment a5sers Purchase ol.. Tarngible fixed as5et5 Fixed asset investments 19331 11,719) 1,089 191 1,278 191 837 8,838 1.028 7.862 1956) 17,636) 11.315} 16,602) Net cash provSded bylused in investing activities Chan8e in cash and cash equivalents in the reporting period Cash and cash equivalents at ljanuary 2,163 2.242 1.230 709 523 186 Cash and cash equivalents at 31 December 1,939 709 Reconciliation of net movements in funds to net cash flow from operating activitie5= Net Incomelexpenditure before investment 8ains for t.he year ended 31 December Adjustments for.. Depreciation char8es Net Profit on disposal ofas5et5 Dividends. interest and rent from investments FRS 102 pension scheme adjusrment Cler8y pension scheme adjustment Interest paid Non conlrolling interest IlncroasellDecrea5e in debtors IncreasellDecreasel in creditors 536 1.439 104 1591) 11.089) 13741 1691 114 11721 11,2781 1581 11,7731 12 (1431 685 {16} Net cash provided used in operating activities 19331 11.7191 Analysis of cash and cash equivalents Cash in hènd 1,939 709 1,939 709 The movement in cash and cash equivalents is the same as the the rnovement in net debt therefore no separato movemenL in ner debt table ha5 been inclLJded in these financial stat'ements. Growing Disciples Wider Younger Deeper Page 27

SOUTHWELL & NoFfiNGHAM DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS For theyear ended 31 December 2020 I. ACCOUNTING POLICIES The financial statements have been prepared under the historical cost convention, with the exception of fixed asset investments. which are included at their fair value at the balance sheet date. The financial statements hève been prepared in accordance with the statement Recommended Practice.. Accounting and Reporting by Charities preparing their accounts accordance with Financial Reportin8 Standard applicable in the UH and epLJblic of Ireland IFRS1021 issued in October 2019 and the Companies Act 2006. The financial statements consolidate the result5 of the Company and its two Subsidiaries, Wind FX Limited and SNDBF Solar Limited on a line by line basis. A separate Statement of Finoncial Activities and Income and Expenditure Account for the Board has not been presented because the Board hhs taP¢en advantage the exemption afforded by section 408 the Companies Act 2006. The financial statements are prepared in sterling which is the functional currency of the Board and are rounded to the nearest £'OOO. techniques are as follows.. rinancial reporting. al Income All income is included in the Statement of Financial Activitie£ ISOFAI when the Board is legally entitled to it as income or capital respectivEIy, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy. bl Expenditure Expenditure 15 included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category. In respect of housing maintenance, the policy is only to provide for orders started before the year end. The cost of office premisès and other service costs have been apportioned to departments to reflect the facilities used. the basi5 of apportionment being floor space or headcount. the Parish share, parochial fees included on a receipts basis except for contributions received shortly after the period end that are Explicitly relating to ihe peri( under review. and are The Stipends Capital account governed by the Diocesan Stip&nds' Fund Measure 1953, as amended.andthe useof the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions. therefore. are satisfied. It is on this basis that the income and the (normally much larger) related expenditure are both included in the unresrricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in Fund Grants payable are charged in the year when the offer is conveyed to the recipient except those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the Board, such grants being recognised as expenditure when the conditions are fulfilled. Granrs offered subject to such conditions which have not been met at the year-end are noted as commitment but not The Board constitutes a public benefit èntity as defined by FRS 102. The principle accounting policies and estimation Growing Disciples Wider Younger Deeper Page 28

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 I. ACCOUNTING POLICIES Icontinuedl accrued as expenditure. contributions falling due within one year and after more than one year. The Board also operates defined benefit scheme for the Board's employees whose employment beghn prior to l April 1993. The contribution rates for this scheme are set by the ctuary using the actuarial valuation every three years. midpoint of the applicable council tax band as determined in 1996. Support costs consist of central anagement. administration nd governance costs. The amount spent on raising funds and other activities considered to immaterial and all support costs are allocated to the purpose charitable activities Costs are allocated wherever possible directly to the activity to which they relate, but where guch direct allocation is not Possible. the remainder is allocated on an pproximate staff time basis. Properties subject to equity Ivalue linked) loans Properties which have been bought with the assistance of value- linked loans from the Church Commissioners are stated at cost or deemed cost. where historic cost values prior to 1996 are not readily available. Equity loans are made to parishes and clergy spousestoenable them to purchase property on a shared Èquity basis. In the event of a sale of any of the houses purchased with value-linked loans. the whole, or proportionate part. of the net sale proceeds would go to the Church Commissioners. Total value-linked loans advanced 31 December 2020 amounted to £134.000 12019-£134,0001. cl Tangible fixed assets and depreciation Freeholdproperties Depreciation not provided on buildings as any provision (annual or cumulativel would not be matèrial due to the vèry long expected remaining useful economic life in each case. and because their expected residu31 value is not materially less than their carrying value. The Board has a policy of regular structural inspection. repair and mair)tenance, which in the case of residential propertie5 accordance with the Repair of Benefices Buildings Measure 1972 and propertie5 are therefore unlikely to deteriorate or suffer from obsolescence. The primary purpose of residential property is to provide accommodation for ministers the Diocese. The freehold properties are held at cost or deemed cost by reference to the Pension contributions. The Board's staff are members of the Board's defined contribution pension scheme and Clergy are members of the Church of England Funded Pension5Schemelseenote 271. The pension costs charged as resource5 expended represent the Bo3rd's contributlQn5 payable in respect of thè accounting period, accordance with FRSIO2. Lay staff who are members the stal<eholder pension scheme, or have their contribution paid into their own personal pension plan are accounted for in the month in which they are deducted. Deficit funding for the pension schèmes to which Board participates is accrued at current value in creditors distinguished between at Growing Disciples Wider Younger Deeper Page 29

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS Icontinuedl For the year ended 31 December 2020 I. ACCOUNTING POLICIES Icontinuedl Parsonage house5 The Board has followed the requirements of FRS102, in its accounting treatment for benefice house5 Iparsonagesl. FRS102 requires the accounting treatment to follow the substance of arran8èments rather than their strict legal form. The Board is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to bèneficial occupation is vested in the irncumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their historic or deemed C05t. Motor vehicles Garden equipment Computer hardware and 50ftware Furniture & fitting5 Orher office equipment Wind turbine Solar panels 2SOk Straight Ilne 20 Stralghi line 33.3% srrai8ht line i0¥¢ 20 Straight line Straight lirbe Straight line Srraight line el Other accounting policies il Fixed asset investment5 are included in the balance sheet at fair value and the gain or loss taken to the Statement of Financial Activities. Glebe agricultural land is valued at 31 December each year by Jas Martin & Co. Chartered Surveyors. Dunham House is professionally valuèd by Mr R Davis of Geo Hallam and Sons. For commercial property a desk top valuation is provided by the Dioce%an surveyor. Some properties included in the Southwell & Nottingham Board of Education restricted fund are not valued and are shown at cost as there is no readily available market value. Land and buildin8s purchased during the year totalled £0.9m 12019- £1.2ml. The Board s policy continues to be to replace unsuitable properties," to accommodate the changing geographical deployment of clergy within the Diotese,. and to realise development potèntial some properties. thereby using our resources more effectively for the ministry of the Church. lil Leases. Operating lease rentals are char8ed to the Statement of Financial Activities when they are paid. The lease payments are charged straight line over the period of the lease. No value linked loan houses were sold in the current or preceding year. Fund balances dl Other tangible fixed assets Fund Balances are split between unrestricted (general and designated). restricted and endowment funds. All capital expenditure over £2,000 is capitalised and depreciated as follows. Depreciation is provided in order to write off the cost Iles5 any ultimate disposal proceeds at prices ruling at the time of the asset s acquisition) of other fixed assets over their currently expected useful economic lives at the following initial rates.. Unrestricted funds are the Board's corporate funds and arE freely available for any purpose within the charitable company's objecrs. at the discretion of the Board.There are two types of unrestricted funds.. Growing Disciples Wider Younger Deeper Page30

SOUTHWELL & NorfiNGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December2020 ACCOUNTING POLICIES (continued) duration and extent of the disruption. General funds which the Board intend5 to Use for the general purposes of the Board. The Board have prepared forecasts of income and expènditure for the period to 31 December 2022 that show deficit budgets. Due to the level of free reserves and cash resources held they are confiderit that they have in place plans to deal with the deficit bud8ets and any further financial losses that may arise. DesiEnated funds are those funds set aside out of unrestricted funds by the Board for a specific purpose over whose use and purpose the Board has discretion. The accumulated capital fund Is the amount transferred from the general fund, gains less loss on investments and the directors valuation of freehold property transferred at no cost. A designated fLJnd has also been crèated for deficit funding in respect of the closed defined benefit pension scheme. The Board therefore continue to adopt the 80ing concern basis of preparation for these financial statements. h) Subsidiaries Both of the Board's trading subsidiaries are consolidated using the equity method.SNDBF Solar Limited andwind FX Limited also have a 31 December year end. The Board own 60,19 of the share capital of Wind FX Limited, therefore the non-controlling interest is shown separately in reserves. Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust. or else by1è8al measure. Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the Board (stipends Fund Capital. Benefice HoLJses and Schools), there are discretionary powers to convert capital into income and, a5 a rÈ%ult. these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment. il Debtor5 & Creditors Debtors and creditors with no srated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaiTm@nt are recognised in expenditure. Il Provisions gl Going concern Provisions are recognised when the charity has an obli8ation at the balance sheet date as a result of a past event. it is probable that an outflowof economic benefits will be required in settlement and the amount can be reliably estimated. For the year ended 31 December 2020 the charitable company madè an operating surplus of £536.000 and after tak<ing account of gains and losses made an overall surplus of E2.74m. Free reserves at 31 December 2020 are £3.3m. The Board haveconsidered theon8oing impact of COVID-19 on thè charitable company's income and operating cost base. They recognise that whilst the government has set out its roadmap ro recovery. it is still not considered practical to 3ccuratÈly assess the Growing Disciples Wider Younger Deeper Pa8È 31

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FSNANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 I. ACCOUNTING POLICIES Icontinuedl kl Critical accounting assumptions estimates and employee5. Contributions are expensed as they becomepayable. The Board makes estimates and assumptions concernin8 the future. The resulting accounting estimates and assumptions will, by definition. seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The charity also operates a defined benefit plan for the benefit of its employees. A liability for the charity s obligations under the plan is recognised net of plan assets. The net change in the net defined ber)efit liability 15 recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation 15 measured on an actuarial basis using the projected unit rrbethod. The present values of Church of England Funded Pensions Scheme and the Southwell and Nottingham Diocesan Board of Finance Staff Retirement Benefit Scheme both dependg on a number of factors that are determined on an acruarial ba51S using a variety of assumptions. The assumptions used in determining the net costlincomel for pension5 include the discount rate. Any change5 in these assumptions, which are disclosed in note 27. will impact the carryin8 value OF the pension liability. ml Furlough income Income claimed under the Government5 Furlough lob Retention scheme reco8nised in the period to which it relates, rather than the peri(Kl in which it is received. An area of P<ey estimation uncertainty, although not a significant risk due to annual professional valuations bein8 undertaken. Is the valuation investment land and properties. The valuations are subject to judgements of an expert includin8. but not limited to. the state of repair of the properties. local nowledge, future income yields and market characteristics. 11 Employee benefits When employees have rendered service to the charity, short-tÈrm employee benefits to which the employ￿5 are entitled are recognised the undiscountedamount expected tobepaid in exchange for that service. The charity operates defined contribution plan for the benefit of its Growing Disciples Wider Younger Deeper Pa8e 32

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 DONATIONS Deanery share Th@ majority of donations are collected from the parishes of the diocese through the parish share system. Total funds 2020 Total funds 2019 Unrestricted funds General Designated Restricted Endowment Funds Funds £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Newark Archdeaconry Nottingham Aichdeaconry Voluntary contribution Shortfall 2,700 2,7(XJ 2.583 3,524 42 {8281 3,524 42 18281 3,407 18 1362) 5,438 5,438 5,646 Receipts for previous years 18 Tol81 Inix)me 5.438 5,438 5,664 Current year deanery share receipts represent 87 390 of the total apportioned12019 - 94.5 Okl. This 15 after the deanery share calculation was reviewed during 2017 and transition provi5ion5 applied to the Deaneriès which have a large disparity with the way deanèry share was previously calculated. Archbishops, Council Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestricted funds General Designated £'ooo £'ooo Restricted Endowment Funds Funds £'ooo £'ooo Selectwe allocation Pooling of ordinands candidates, costs Sustainability Fundin9 Strategic Ministry Funding Strategic Development Funding 1.266 1.266 1,280 250 250 23 23 602 602 591 1,547 602 2,149 1,871 other donations Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestricted funds General Designated £'ooo £'ooo Restricted Endowment Funds Funds £'ooo £'ooo Allchurches TIu5t 140 140 136 Other Granls 143 144 139 Growing Disciples Wider Younger Deeper Pa8e 33

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENTS Icontinuedl For theyear ended 31 December 2020 CHARITABLE ACTIVITIES Total fund5 2020 £'ooo Total funds 2019 £'ooo Unrestri¢ted funds General Designated £'ooo £'ooD Restricted Endowment Funds Funds £'ooo £'ooo Slalulory fees Conliibutions to sector and other chaplaincy posts Contiibulions to costs of lay stafl posts Church Commissioners, Loar) receivablè Other contributions and income 278 278 315 é6 90 104 104 127 39 39 22 interest 10 10 136 137 221 633 634 777 4. OTHER ACTIVITIES Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestricted funds General Designat8d £'ooo £'ooo Restricted Endowment Funds Funds £'ooo £'ooo Housing income 452 454 449 INVESTMENT INCOME Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestrlcted funds General Designated £'ooo £'ooo Restricted Endowment Funds Funds £'ooo £'ooo Dividends receivable Interest receivable Rents and income from mineral rights reoeivable 209 174 383 485 12 650 49 699 781 862 227 1.089 1,278 OTHER INCOME Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestricted funds General Designated £'ooo £'ooo Restricted Endowment Funds Fund5 £'ooo £'ooo Sale of fixed a$5els Subsidiary incorne Furlough incotne 441 150 591 338 95 250 304 338 95 536 338 150 1,024 554 Growing Disciples Wider Younger Deeper Page 34

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December2020 FUNDRAISING COSTS Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestrlcted funds General Designated £'ooo £'ooo Restricted Endowment Funds Funds £'ooo £'ooo Glebe agent's fee Other land agent commission nd expenditure Investment management charges 179 179 190 126 12 138 161 35 52 87 340 64 404 445 8. CHARITABLE ACTIVITIES Total funds 2020 £'ooo Total funds 2019 £'ooo Unrestrlcted funds General Designatec £'ooo £'ooo Restricted Funds £'ooo Endowment Funds £'ooo ContributSons to Archbi5hops' Council Training for Ministry National Church respon5ibililies Retired cleigy housing costs Pooling of ordinands costs 212 212 212 185 185 189 76 76 73 20 473 473 494 Resourcing Mlnistry and Mission People costs Stipends, salaries and national insurance Pension contributr'ons Housing costs Removal, ieseltlement and other expenses 4,881 1,241 1,185 349 5,230 1,241 1,193 5,216 1,285 1.099 157 157 201 7.464 357 7,821 7,781 Support lor parish ministry 979 316 1,295 1,491 8,443 673 9,116 9,272 8,916 673 9,589 9,766 Growing Disciples Wider Younger Deeper Page 35

SOUTHWELL & NorriNGHAM DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIALSTATEMENTS Icontinuedl For theyearended 31 Decomber2020 EXPENDITURE ON CHURCH SCHOOLS & DIOCESAN PROJECTS Total funds 2020 Total funds 2019 Unrestricted funds General Designated Re$trKctèd Endowment Funds Funds £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Expendlture Education Suppori lor thuich schools Mission Developrnenl Fund 151 151 151 151 195 10. OTHER EXPENDITURE Total funds 2020 Total funds 2019 Unrestricted funds General Designated £'ooo Restricte Funds Endowment Funds £'ooo £'ooo £'ooo £'ooo £'ooo Audrt Fees- audit Audit Fees- non-audit 18 18 18 synod￿)1 cos18 Subsidiary expenses FiKed asset disposals 236 236 240 78 22 236 258 342 Growing Disciples Wider Younger Deeper Pa¥e26

SOUTHWELL & NOTINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS Activities Undertaken Directly £'ooo 404 Grant Fundlng of Suppori Activities Costs £'ooo £'ooo Total costs 2020 £'ooo 404 Totsl costs 2019 £'ooo 445 Fundraising ctssls Charitable a¢tivities'. Contributions to Council Clergy pension scheme movement Resourcing ministry and tnission Church Schools and Dioce58n proje¢ts Governance costs Other Archbishop's 473 473 {61 9,112 494 11,455) 0,292 {61 8,700 394 18 151 154 198 258 258 318 9,356 1,018 22 10,396 9,293 Where c05t5 cannot be directly attributed to particular headin85. they have been allocated or apportioned to activities on a basis consistent with the use of the resources. Central Support costs are apportioned on the basis of the estimated usage of resources at Jubilee House. Governance costs comprise audit fees. Costs relating to the preparation of the statutory returns and the costs of hosting Diocesan Synod_ The apportionment in 2020 can be summarised a5 follows.. Re50urcing ministry and mission 85.08Wo Church Schools 12.220h Diocesan Projects 1.90Wo Governance 0.80 Growing Disciples Wider Younger Deeper Page 37

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 12. ANALYSIS OF GRANTS MADE 2020 Toral E'OQO 2019 Total £'ooo NuM￿r Individuals £'ooo Institutions £'ooo From unrestricted funds for National Church responsibilitie5: Contributions to Archbishop s Council 473 473 494 Frorn unrestricted funds.. Rainbow project (now Refu8ee Root51 Clergy Ordinands in Iraining Transforming Nott5 Together From restricted fund5 for various purposes within resourcing parish ministry.. Mission Development Fund Growing DiscipleslNew Worshipping Community Granrs Perry Gift 21 21 78 227 15 21 132 154 31 166 78 227 15 22 50 50 61 Total 228 308 559 867 876 Growing Disciples Wider Younger Deeper Page 38

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIALSTATEMENTS Icontinuedl Forthe yearended 31 December 2020 13. STAFF COSTS 2020 £'ooo 2019 £'ooo Employee costs during the yearwero as follow& salaries and stipends National insurance contributions Pen5i0n cost5 Church of England Fundod Pension scheme 12020- 9 employees. 2019 -9 employees) Defined Benefii scheme 12020- 1 Èmployee, 2019 -1 employee) Defined contribution schemes 12020-63 employees. 2019-57 employeesl 1,586 154 1,591 153 65 59 123 126 133 130 2,061 2.059 The average number of person5 employed by the 8roup durin8 the year.. Number Number Adminisiration and Financial management Property Discipleship & Ministry. Stewardship Education Communication5 33 31 21 65 67 The average number of person5 employed by the group durin8 the year ba*d on full-time equivalents". Number Number AdminSstration and financial management Property Discipleship & Ministry. Stewardship Education Communications 19.74 3.50 19.70 3.50 12.60 4,58 2.50 5.20 46.47 42.88 The numberof people employed by Ihe Board now include some posrs that were previously funded by way ol grant or contribution to a third party. Growing Disciples Wider Younger Deeper Pa8e 39

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 13. STAFF COSTS l¢ontinuedl 2020 Number 2019 Number The ntjmbers of staff whose emoluments lincludin8 kEneFits in kind but excluding pension contributions) amounted to more than £60.000 werea5 follows.. E60.000 - £70,000 £70,001- £80.000 Pension payments of £24,02412019'. E14,5181 were made for these employees Remuneration of key management personnel Hey management personnel are d8@med to be those having authority and responsibility, delegaLed to them by the trustèes. for planning. directing and controlling the activities of the diocese. During 2020 they were.. Diocesan Chief Executive and Company Secretary Director of Discipleship & Ministry Direcior of Partnerships & Mission Director of Education & Mission Director of Communications Director of Parish Support Director of Finance Mr M Cooper (appointed 2 March 20201 Revd Canon Dr R F<ellett Revd D Mccoulough Mr N Frith (appointed 2 March 20201 Mr R Ellis (resigned 31 May 20201 MrFMcNish Mrs R Bowes Remuneration, including employers Nl and employers. pension contributions For these 7 employees amounted to £476.69712019.' £451,170). Directors, emoluments No Director received any remuneration for services as Director. 7 Directors received travelling and out of pocket expenses. totalling £12.12712019 -7 Directors- £18.6781 in respecr of General Synod duties. duties as archdeacon or area dean. and other duties as Directors. Growing Disciples Wider Younger Deeper PagÈ40

SOUTHWELL & NOfflNGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For the yearended 31 December2020 13. STAFF COSTS Icontinvedl The following table gives details of the stipendiary Directors, including those who were in receipr of a stipend andlor housing provided by the Board during the year.. Stipend No No No Yes Yes Yes Yes Housing No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes The Right Revd P Williams The Right RevdA Porterlto 23 March 20201 The Right Revd A Emerton lappointed ljuly 20201 The Ven D PicK(en Ito 2 February 20201 The Ven PWilliam5 The RevdA Fletcher The Revd Canon M F Shouler ThE Revd S Hu5twayte The Revd Canon S D Silvester The Revd C Bourne The Revd Canon MAdams Ito4 December20201 Yes Yes Yes The Board is responsible for funding via the Church Commissioners the stipends of licensed stipendiJry clergy in the diocese. other than bishops and cathedral staff. The Board is also responsible for the provision of housing for stipendiary clergy in the diocese including the Suffra8an bishop but excluding diocesan bishop and cathedral staff. The Board paid an averag@ of 124 12019 -12715tipendiary clergy as officeholders holding parochial or diocesan appointments in the diocese. and the costs were as follows.. 2020 £'ooo 2019 £'ooo Stipends National insurance contributions &Apprenticeship levy Pension cost5 current year deficit reduction 3,256 277 544 375 3,219 274 501 369 4,452 4.363 The annual rate of stipend. funded by the Board, paid toArchdeacons in 2020 was in the range £36,100 - £38.00012019 range £36.100 - £37,50013nd other cler8y who were Trustee5 were paid in the range £25,265- £26.97912019 range£24.2T/- £26,450). Growing Disciples Wider Younger Deeper Pa8e 41

SOUTHWELL & NOITINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENTS Icontinuedl For theyear ended 31 December 2020 14. TRANSFERS BETWEEN FUNDS A transfer from the general fund of £368,000 has been made lo the Clergy pension fund within endowment funds for the costs incurred in the year. 15. TANGIBLE FIXED ASSETS- Company Freehold Houses Isee below) £'ooo Diocesan Office & caretskers. bungalow £'ooo Office Equipment £'ooo Motor Vehicles £'ooo Total £'ooo Cost At 1 January 2020 Additions Disposals 33,803 944 12461 3.809 500 12 38,112 956 12461 At 31 D￿ember 2020 34,501 3,809 512 38,822 Depreciation At 1 January 2020 Charoe for the year Disposals 26 374 35 400 36 At 31 December 2020 27 409 436 Net Book Value At 31 De¢etnber 2020 34,501 3,782 103 38.386 At 31 December 2019 33,803 3,783 126 37,712 Growing Disciples Wider Younger Deeper Page 42

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 15. TANGIBLE FIXED ASSETS - company Icontinuedl 2020 2019 Cost or Cost or deemed Number of deemed Number of C05t houses Cost houses £'ooo £'ooo Endowment funds Benefice houses fund Parsonage houses Glebe funds Housing ol le8rn vicars, CUTales & others Reliremenl houses Unrestricted Idesignatedl funds Corporate property City Centre Resource Church Housing of senior clergy. curates and others Houses subject lo value-linked loans Housing ol curates and others 17,832 125 17,632 119 8,751 40 44 8,811 40 49 1,498 6,240 1.498 5,682 24 26 140 140 34,501 198 33,803 199 Diocesan offices include the caretaker's bungalow situated in the grounds of Dunham House and amounts capitalised as part of the lubileÈ House office build shown at cost. There is no reliable market value. but a valuation of both jubilee House and the bungalowwould begreater than historic cost. Dunham House is held in investment propertiès as it has beèn converted to 7 apartments for rental. A professional year end valuation has been obtained from Mr G Davis from the Board's property agent. whom is an independently qualified surveyor. Dunham House isvalued on a freehold market value b3515. All of the freehold houses included above are f reehold and are vesred in the Board, except for benefice houses which are vested in the incumbent. The Board 15 not free to dispose or encumber these properties as it sees fit, as they are to be used for clergy housing. They are carried at cost or deemed cost and in the opinion of the Directors. the carrying valLJe of land and buildings is less than the market value. The costs of revaluation are considered to outweigh th8 benefits to the reader of the account5. Properties are subject to a five-year cycle of survey and consequent repairs are charged as expenditure. Some properties have been purchased with the help of a value-linP<ed loan from the Church Comm155ioners.' when disposed of. the appropriate share of the net sale proceeds will be remitted to the Commissioners, and the related loan liability extinguished. The value of such properties included above amounts to £140,000 12019.. E139.0001. Of the total land and buildings at 31 December 2020. É14.5m are valued at cost12019'. £15.336ml. with the resr at deemed cost. Properties are subject to a five-year cycle of survey and consequent repairs are charged as expenditure. Growing Disciples Wider Younger Deeper Page 43

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIALSTATEMENTS Icontinuedl For the yearended 31 December 2020 15. TANGIBLE FIXED ASSETS- Group Diocesan Office & caretakers, bungalow £'ooo Wind Turbine & solar panels £'ooo Freehold Houses £'ooo Office Motor Equipment Vehicles £'ooo £'ooo Total £'ooo Cost Al 1 January 2020 Additions Disposals 33,803 944 12461 3.809 500 12 1,69) 39,802 956 1246} At 31 December 2020 34,501 3.809 512 1,69) 40,512 Depreciation Al 1 January 2020 Charge for the year Disposals 26 374 35 271 68 671 104 Al 31 December 2020 27 409 339 775 Net Book Value Al 31 Decembei 2020 34,501 3.782 103 1,351 39.737 Net Book Value Al 31 D8cember 2019 33,803 3.783 126 1,419 39,131 Growing Disciples Wider Younger Deeper Page 44

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For theyear end@d 31 December 2020 16. FIXED ASSET INVESTMENTS- COMPANY & GROUP At 1 January Additions 2020 at Cost Disposals At31 Un￿a￿lSe￿ December gainsllosses 2020 Listed investment securities Restrioled funds Endowment funds Unrestr￿ed funds £'ooo 7,868 5,333 2,861 £'ooo 3,440 288 3,184 £'ooo (3,769) 1316) 13.3181 £'ooo 615 687 439 £'ooo 8,154 5.992 3.166 16,(￿2 6,912 17,4031 1,741 17,312 Unlistsd investment se¢urities Restricted funds Endowtnent funds Unreslrided funds 84 2,934 871 (141 241 1511 70 3.214 820 39 3.889 39 176 4,104 Cash held for investment purposes Restrict8d funds Endowrnent funds Unrestricted funds 27 408 728 27 369 1,163 1391 724 12891 1,163 685 12891 1,559 Investmenl propertie¥ Restricted funds Endowment funds Unrestricted funds 18.536 1.547 15971 70 18,009 1,547 20,083 {5971 70 19,556 Totsl 41,197 7.636 (8,2891 1,987 42.531 Due to their nature the historSc cosr of investmenr properties 15 not known. Included in the above are Ihe following unrealised Bains -Endowment funds £1.081.608 12019-£1.235,3521 Restricted funds £721,696 12019- EI.084.9611 and unrÈstricted funds El.430.17612019-E515.9261. Growing Disciples Wider Younger Deeper Page 45

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 17. SUBSIDIARIES The Diocesan Board of Finance has two trading 5ubsidiaries.. Wind FX Limited 15 incorporated in the Uniced Hin8dom (company numbor 096018361 and is 60% owned by the Board. Wind FX Limited was incorporated on 20 May 2015 and the Board acquired its share5 on 4 December 2015. SNOBF Solar Limited is incorporated in the Unitecl Hingdom (company number 097922841 and was incorporated on 23 SeptembÈr 2015, and the Shares were acquired on the same dale. Both companies operare in the renewable er￿rgY sector. SNDBF Solar Limited 2020 £'ooo 26 16 Wind FX Limited 2020 £'ooo 311 308 The surnmary financial performance ol the subsidiaries alone are.. Turnover Expenses Nel Profit 10 The assets and liabilities of the subsidiaries alone are.. Fixed assets Current Assets 1,181 409 11581 1811 11,4411 170 125 12291 124} Provisions Long tem liabilities Nel Ili8bilitiesllassets 1901 42 Represented by Share Capital Reserve5 {901 42 Both subsidiaries have taken advanta8e of exemption from audit under section 479A Companies Act 2006. 18. DEBTORS GROUP COMPANY 2020 2020 £'ooo £'ooo 44 44 GROUP COMPANY 2019 2019 £'ooo £'ooo 166 166 10 10 116 116 392 253 Due wlhin one year Current year Parish share Loans to parishes Rent deblois Other debtors Arnount5 due from subsidiary Prepayments 126 647 126 355 87 68 68 83 896 691 747 608 Due after more than one year Loans to paiishes Amounts due from subsidiary 130 130 1,091 136 136 1,091 130 1,221 136 1,227 Total debtors 1,026 1,912 883 1,835 Growing Disciples Wider Vounger Deeper Page 146

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December2020 19. CREDITORS: amounts falllng due within one year GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP COMPANY 2019 2019 £'ooo £'ooo Bank overdraft Mission development fund grants Other taxes and social secuiily Olhei creditors and accruals Amounts owed to subsidi8ries Cleigy pension scheme 31 44 1.395 31 44 1.218 102 375 31 31 754 591 78 369 375 Total credStors: amounts falling due within one year 1,845 1,770 1.154 1,(￿9 20. CREDITORS: amounts falling due after mora than one year GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP COMPANY 2019 2019 £'ooo £'ooo Loan repayrnenl instalments due after more than one year Church Commissioners value-linked loans Sundry creditors Shareholder loans Soulhwell & Notlinghatn Board of Edu¢alion Loan with the Central Board of Finance- interest free 134 134 134 134 576 576 719 2,043 143 2,043 719 2,161 143 2,161 Pen5K)n scheme liabilitie5 Total creditors.. amounts falling due after more than one year 2.762 2,186 2,880 2.304 Value-linked loans IVLLS) represent amounts advanced to the DBF lor the purchase of properties on an equity sharing basis and are repayable on the disposal of the related property. llllerest al the lime of the advance is al the rale 014/0 per annum13/0 per annum on loans advanced on or before 31 De￿rnber 19921 rising annually by the increase in the Retail Prices Index. As the dale of disposal ol the pioperty is not knovffl, the analysis ol the date due cannot be calculated. CREDITORS: amounts falllng due after more than one year GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP COMPANY 2019 2019 £'ooo £'ooo The maturity of th@ above loans may be analysed as follows.. Between one and two years Belween two and five years In five years or more 32 118 569 32 118 569 134 134 719 143 719 143 Growing Disciples Wider Younger Deeper Page 47

SOUTHWELL & NorfiNGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 Decembor 2020 21. SUMMARY OF FUND MOVEMENTS-GROUP Balance at 1 January 2020 Income Expenditur8 £'ooo £'ooo £'ooo Balances at 31 D8cember 2020 £'ooo Galns and Losses £'ooo Transfers £'ooo ENDOWMENT FUNDS Expendable Benefice houses fund Stipends fund capital Parsonages capital CleTgy pension fund deficit 17,632 35,780 144 18211 17,632 37,275 162 14471 150 1.345 18 368 Permanent funds stipends Bramcote Bungalows Haseldine Homes Perry Gift Fund Other pemianent endowment funds 1.293 837 495 673 164 107 56 85 1.457 944 551 758 418 59 475 56,449 368 1,834 58,807 RESTRICTED FUNDS DioTrsan Board of Education Pastoral Account Strategic Development funding 7,786 130 147 11781 1411 330 8,085 89 602 171 16021 ie71 12361 Other reslricled income funds 437 10 551 Non-conlrolling interest 61 251 75 8,414 1.171 11,1241 339 8,800 UNRESTRICTED FUNDS General Fund Designated reserves Accurnulated Capi181 Mission Development fund Closed pension scheme defiat funding Defined benefit pen8ion seheme 4,417 9,611 19.3471 16301 362 4,413 8,498 108 8.498 108 1.709 262 1,971 11,7091 69 13311 11,9711 13.023 9,611 19,2781 1368} 31 13,019 TOTAL 77.886 10,932 110,3961 2.204 80,626 Growing Disciples Wider Younger Deeper Page 48

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 Docember 2020 21. SUMMARY OF FUND MOVEMENTS- GROUP Iprloryearl Balances Balance at 1 January 2019 Income £'ooo £'ooo Gains 31 and De¢ember Losses 2019 £'ooo £'ooo Expenditure Transfers £'ooo £'ooo ENDOWMENT FUNDS Expendable Benefice houses Stipends fund capital P8isonages capital Clergy pensi￿ fund deficit 17.344 35.237 123 {2,5941 288 1288} 17,632 35,780 144 {8211 250 581 21 1,455 318 Permanent fund5 Stipends Bramcole Bungalows Haseldine Homes Peiry Gift Fund Olhgr p8rmanent endowment funds 1.063 688 416 553 230 149 79 120 1,293 837 495 673 329 87 416 53,159 250 1,455 318 1,267 56,448 RESTRICTED FUNDS Diocesan Board of Education Pastoral Account stiategic Development funding Other restricted income funds 8,752 250 186 15 1221} 11351 1.(K9 7,786 130 591 130 15911 (951 12391 437 Non-conlrolling interest 115) 303 12 61 7,383 1.225 11.2811 1,087 8.414 UNRESTRICTED FUNDS General Fund Designated re8erves Accumul8led Capital Mission Development Closed Pension ￿herne Deficit funding Other designated funds Defined benefit pension scheme liability 4,272 9.257 19.5251 1811 4,417 8,498 113 8,498 108 151 1,914 27 1205} 1271 1,709 11,4161 56 13511 {1,7091 13,408 9,257 19,4871 1318) 143 13,023 TOTAL 73,950 10,732 19,2931 2,497 77,886 Growing Disciples Wider Younger Deeper Page49

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEME￿5 Icontinuedl For theyear ended 31 December 2020 21. SUMMARY OF FUND MOVEMENTS- COMPANY Balances at Balances at Galns and Losses £'ooo 31 December 2020 £'ooo 1 January 2020 £'ooo Income £'ooo Expenditure £'ooo Transfers £'ooo ENDOWMENT FUNDS Expendable Benelice houses fund Stipends fund capit81 Parsonage5 capital Clergy pension fund deficit Perman8nt funds Slipend5 Bramcole Bungalows Haseldine Homes Perry Gift Fund Other permanent endowment funds 17.632 35,780 144 1821) 17.632 37.275 162 {447) 150 1,345 18 368 1,293 837 495 673 164 107 56 85 1,457 944 551 758 416 59 475 56,449 150 1,834 58,807 RESTRICTED FUNDS Diocesan Board of Education Trading Subsidiary incotne Pastoral Account Strategic Development funding Olhei Teslricled income fLJnds 7,786 147 11781 330 8,085 130 141} 89 602 171 1602) 1671 437 10 551 8,353 920 18881 340 8,725 UNRESTRICTED FUNDS General fund Designated reserves Accumulaled Capital Mission Development Closed Pension 8cheme deficit funding Defined benefit pension scheme 4,504 9,611 19,3471 1630) 362 4.500 8,498 8,498 108 1,709 262 1,971 11,7091 69 {331} 11,971} 13,110 9,611 19,2781 13681 31 13,106 TOTAL 77,912 10.681 110,1601 2,205 80,638 Growing Disciples Wider Younger Deeper Page 50

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 310ecember 2020 21. SUMMARY OF FUND MOVEMENTS -COMPANY Iprior yearl Balances Balances at 31 De¢ember 2019 £'ooo Gains and Losses £'ooo 1 January 2019 £'ooo Income £'ooo Expendsture £'ooo Transfer5 £'ooo ENDOWMENT FUNDS Expendable Benefice houses fvnd Slip8nds fund capital Parsonages capital Cleigy pension fund deficit Permanent funds Stipends Biarncote Bungalows Haseldine Homes Perry Gift Fund Olhei peimanenl endowment funds 17.344 35.237 123 12,594) 288 1288} 17,632 35.780 144 16211 250 581 21 1,455 318 1,063 688 416 553 230 149 79 120 1,293 837 495 673 329 87 416 53,159 250 1,455 318 1.287 56,449 RESTRICTED FUNDS Diocesan Board of Education Trading Subsidiary Income Mission Development Fund Pastoral Accounl strategic Developrnent funding Oth8r restricted In￿rne lunds 6,752 188 87 12211 1,069 7,766 187} 250 1135} 130 591 130 15911 1951 437 7,398 1.009 11.0421 187) 1,075 8,353 UNRESTRICTED FUNDS General fund Designated reserves Accumulated Capi181 Mission Development Closed Pension scheme deficit funding Other designated funds Defined benefit pension $Gheme 4,272 9,257 19,5251 494 4,504 8,498 113 8,498 108 Isi 1,914 27 1205) 1271 1.709 11,4161 {3511 11,7091 13,408 9,257 19,4671 {2311 143 13,110 TOTAL 73.965 10,516 19,0541 2,465 77,912 Growing Disciples Wider Younger Deeper Pa8e 51

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 22. GROUP SUMMARY OF ASSETS BY FUND CURRENT YEAR Flxed assols Tanglblo & Intanglblo £'ooo Currpnt A55ets Net Assets Investments Cr8dlto¥s £'ooo £'ooo £'ooo £'ooo Endowmgntfunds Expendablg gndowrNt)I lunds Bellefi￿ houses Stipend fund trApiial Parsonages capllal c￿rgY PÈn8ion fund deficlt Pbrmanentèndowm&nt fund5 fj7,632 11,192 17,632 37,275 162 14471 4.185 26,OB3 162 14471 3,825 330 28,854 30,070 330 14471 58.807 Rgstrlcted Di0￿san Board of Educallon Pasloial 8ccounl Other reslricled Income fund5 7,214 1,424 89 1751 15531 8.085 89 628 1.351 16501 1.351 7.214 1.438 11,2031 8,800 Unrestrrctgd funds Genera1 fund Designated fund8 Accumulaled capital Other designsled funds Penston ￿$8￿@ 1.034 5,139 17741 19861 4.413 8.498 8.498 2.079 108 1.971 11,9711 9.532 5,247 1.197 12,9571 13.019 Total lund8 at 31 D6¢ember 2020 39,737 42,S31 2,965 14,60YI BO,626 GROUP SUMMARY OF ASSETS BY FUND- PRIOR YEAR Flxed as$et$ Tangiblo & CuTr&nt Assot$ £'ODO Not AsSOtS £'ooo Invostments É'ooo Crodltors £'ooo £'Doo Endowment funds Expendable endowm8nt fund Benefice houses Slipend fund capital Parsonages capilal Clergy Pension fund deficil Permanent gndoyimont funds 17,632 10,518 17.632 35,780 144 18211 3.714 25,262 144 31 3,295 388 28.181 28.701 388 5e.449 Re5trictsd Diocesan Board of Educalbn Pastora1 accounl Other resliKièd irbcome funds 6,881 7.788 130 498 13D 12331 1.419 16881 1.419 6,881 977 18631 8,414 Unrestrlctsd lund8 General fund Deslgnatod fund¥ Accumulated capllal olherdesignaled funds Pen8lon reserve 1.033 3,593 227 14361 4,417 8,498 8.498 1.817 11,7091 2,(r22 12051 11.7091 9.531 5.615 227 1?.3501 13.023 Total funds at 31 Decgmbar 2019 39,131 41.197 1,592 14.0341 77.886 Growing Disciples Wider Younger Deeper Pase 52

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 22. COMPANY SUMMARY OF ASSETS BY FUND- CURRENT YEAR Fix•d a¥sets TanglL)l& £'ooo Curronl Assets £'ooo Nbt Assets £'ooo Investments Credltors £'ooo £'ooo Endowment funds Expendable endowm&nt funds Benefi￿ houses SIIKend lund capital Parsona9es capilal Clergy Pension fund deficll Pormanent endowrnent lund$ 17,632 11,192 17.632 37.275 162 14471 4.185 26.083 162 14471 3.825 330 28.854 90.070 330 58.807 Resirl¢tfyd Dlocesan Board of Educallon Pasloral gccounl Other reslricled incotne funds 7,214 1.424 89 551 15531 8,085 89 551 7.21dl 15531 8.725 UrtYè8trlctgd fund5 Geneial fund Deslg¢)ated funds A¢cumJl?led capital Other designated funds Penslon reseNe 1.034 5.139 16881 19851 4.500 8.498 8,498 2,079 108 1.971 5,247 1,283 12,9561 13,106 Total lunds at 31 De￿rnber 2020 38.388 42,531 3,677 13,9561 80,638 COMPANY SUMMARY OF ASSETS BY FUND- PRIOR YEAR Flxed as8et¥ Ta￿llIbl0 £'ooo Curr•t)t A8¥•18 £'ooo Nel Assgts £'ooo Investment8 £'ooo Crodltors £'ooo Endowm$nt funds Expendable endowmpntfunds Benefice houses Slipend fund capital Parsonages capital Clergy Pension fund defi(Al P8rma#eJ¢ endovimentfunds 17.632 10,518 17.622 35.780 144 25,262 144 18211 31 3.295 386 3.714 28,181 28.701 388 18211 56,449 R&stdcied Diocesan Board Df Educallon P8sloral accounl MEsion developmenl fund Other reslricled inGome funds 6,881 1.080 130 437 11751 7.786 437 6,881 1.647 8.353 Unrestricted funds General fund Deslgnated funds Accumulated capital Olherde5ignaled funds Pension reserve 1.033 3,593 341 14631 4,504 8.498 8,498 1,817 11,7091 2,022 12051 11,7091 9.531 5.615 341 12.3771 13,110 Total funds at 31 December2019 37,712 41,197 2.Jr6 13,3731 77,912 Growing Disciples Wider Younger Deeper Page 53

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2020 23. DEsCRI￿loN OF FUNDS Expendable Endowment Funds- investment income is usableonly for thespecific purposes for which the endowment was given and the trustees may convert the capital into spendable income depending on various restrictions.. Benefice house5 fund represents the value of benefice houses at the balance sheet date together with the Parsonages Building fund5 hold by the Church Commissioners. Thesè houses are used to provide accommodation for parochial clèrgy. The Board is not free to dispose of rhe houses except in accordance with appropriate measures. Stipends fund represents the proceèds of the sale of glebe. parsonages capital (Glebe funds) transferred by Pastoral Scheme and gifts to the fund. The Funds generate income for the payment of stipends and can be invested or applied to the capital purposes permitted by the Endowmentsand Glebe Measure 1976 and the Church of England IMiscellaneou5 Provisions) Measure 1992. Parsonagès Capital the income to be applied to meet personage housescosts. Cler8y pension Fund details contained in note 27 deficit Permanent Endowment Funds- investment income only is usablefor thespecific purposes for which the endowment was given.. Stipends to augment clergy stipends. Bramcote Bungalows to provide housing for retired clergy or their spouses. Haseldine Homes to contribute to the payment of pension contributions for stipendiary clergy in the diocese. Perry Gift Fund to provide grants to clergy and lay persons deserving of financial a55lStance. Growing Disciples Wider Younger Deeper Page 54

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 23. DESCRIPTION OF FUNDS Other Permanent Endowment Funds Ministers in training to provide grants to ministers in trainlng. Miss E L Brown Trust to be 3pplied at the discretion of the Bishop of Southwell. Nottingham University Chaplaincy to pay the expenses of the Nottingham University chaplaincy. Sacrista Canonry to be applied for the Canon appointed to occupy the stall of the Canonry of Sacrista in Southwell Minister. Southwell HouselHostel Charity to be applied to properry outgoinEs. Yapp Donation to be applied for a former employee's annuity, with any surplus to be used for the benefit of persons who are physically or mentally handicapped. Restricted Funds- can only be used for the specific purposes for which rhey were 8iven'. Diocesan Board of Education to administer the scheme for the Diocese's Church Schools, building progrèmme and to operate for the benefit of Church Schools. Pastoral account set up under the provisions of the Pastoral Measure 1983 and represents proceeds of redundant churche5 and par50na8es which have not yet been applied to the purposes permitted by the Pastoral Measure 1983. strategic Development Fund representssums of money made available by the Archbishop's Council set aside for mission development. Landon Bequest to fund Church of England students and Ordinands to serve overseas. Natal Link Fund represènts donations from parishes and individuals for general work and specific projects in the Diocese of Natal. Readers Association to meet central costs for Reader5. Industrial Ch8pl8incies to meet central costs for industrial chaplaincies. Growing Disciples WAder Younger Deeper Page 55

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIALSTATEMENTS Icontinuedl For theyear ended 31 December2020 23. DESCRIPTION OF FUNDS Designated Funds- general funds that theTrustees have chosen to use for a specific purpose". Accumulated Capital Fund represents amounts transferred from the general fund, gains less lo%ses on investments and the directors valuation of property transferred at no cost. This fund is designated for use to purchase fixed assets. Mission Development Fund Amounts in addition to the restricted fund set aside for Mission Development. Other designated fund5 (Ordination Candidates Support Funding) to meet support costs of Ordinands. Closed Pension Fund Deficit Funding amounts tFan5F8rred from the general fund to meet future deficit contributions. General fund - the general fund is the Board s unrèstricted undesignated fund available for any of the Board's purposes without restriction. 24. CAPITALCOMMITMENTS At 21 December 2020 the Group hèd capital expenditure commitments authorised but not contracted for of £NIL12019 £NILI and contracted for but not yet due of £36,207 12019 £NILI 25. OPERATI NG LEASES Total commitments under non-cèncellable operating leases are as follows.. GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP 2019 £'ooo COMPANY 2019 £'ooo othor operating leases where the lease expire5- Within one year of ihe balance sheet date In the second ro fifth years inclusive of the balanco sheet date Over fiveyears from the balance sheet date 29 29 100 425 95 450 554 574 Growing Disciples Wider Younger Deeper Pa8e 56

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIALSTATEMENTS Icontinuedl For the year ended 31 December2020 25. OPERATING LEASES Icontinuedl Analys8d 88 follows GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP COMPANY 2019 2019 £'ooo £'ooo Land & Buildin8S Other operating leases where the lease expire5- Within one year of the balance sheet date In the second to fifth years inclusive of the balance sheet date Over fiv@ year5 from the balance Sheet date 27 20 95 425 450 552 565 GROUP COMPANY 2020 2020 £'ooo £'ooo GROUP COMPANY 2019 2019 £'ooo £'ooo Other Other operating leases where the lease expires.. Within one year of the balance sheet date In th& second to fifth years inclusive of the balance Sheet date Over flve years from the balance sheer date 26. CONTINGENT LIABILITIES The Board has given guarantees on grants made by Nottingham City Council from public funds to various parishes totalling £4,15012019 -£6.2251. The Board is also party to a guarantee in respect of Bluecoat Academy, as in common with all Church of England schools, the Board owns the land the school building is built upon. 27. PENSSONS The Board participates in two pension schemes, both of which hold the a5S@ts of the schemes separately from those of the Board and the other participatin8 employers. One of these is rhe Church of England Funded Pension5 Scheme for stipendiary clergy. the other is Th@ Southwell and Nottingham Diocesan Board of Finance Staff Retirement Benefit Scheme for lay staff. Church of England Funded Pension Scheme This scheme is admini%tered by the Church of England Pensions Board. Each participating employ@r in the scheme pays contributions at a common contribution rate applied to pensionable stipends. Growing Disciples Wider Younger Deeper Pa8e 57

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTO THE FINANCIAL STATEMENTS Icontinuedl For the year ended 31 Decernber 2020 27. PENSIONS Icontinuedl Church of England Funded Pension Scheme Icontinuedl The scheme is considered to be a multi-employer scheme a5 described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme's assets and liabilitiès to specific employer5 and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contribution5 payable towards benefits and expenses accrued in that year 12020 £912.000, 2019 £924,000) plus the impact of deficit contributions lsee below). A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 21 December 2018. The 2018 valuation revealed a deficit of £50m. based on assets of £1,818m and a funding target of £1,868m, assessèd using the following assumption.. An avera8e discount rate of 3.2￿pa RPI inflation OF 3.4°10 pa land pension increases consistent with thisl Increase in pensionable stipends of 3.4010 pa mortality in accordance with 95Qh of the S3NLVL tables, with allowance for future improvements in mortality rates in line with the CM12018 extended model with a long-term annual rate of improvement of 1.5°1o. a gmoothing parameter of 7 and an initial addition to mortality improvements of 0.5°hpa. From January 2018 to 31 December 2022 the rate in respect OF the deficit recovery will be 11.9010. From January 2021 to December 2022 the rate will be 7.10/0. The discounted deficit payment5 in respect of the shortfall have been reco8nised as a li3bility in the balance sheet. A reconciliation of the balance sheet liability 15 Set out bèlow. GROUP& GROUP& COMPANY COMPANY 2020 2019 £'ooo £'ooo Balance sheet liability as at Ilanuary Contributions paid Interest cost Irecognised in the SOFA) Re-measurement of the balance sheet liability 821 13751 2,594 13691 51 11.4551 161 Balance Sheet liability as at 31 December 447 821 This liabiliry represents the present value of the deficit contributions agreed as the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments.. December 2020 December 2019 December 2018 Discount rate Price inflation Increase to total pensionable payroll I.IWo pa 2.8Q/o pa 1.3%pa 2.lok pa 3.10/0 pa 1.6Wopa 3.1 1.6% Growing Disciples Wider Younger Deeper Pagé 58

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL ¥FATEMENTS Icontinuedl For theyear ended 31 December2020 27. PENSIONS Icontinuedl The legal structure of the scheme is such that if another Responsible body fails, The Board could become responsible for paying a share of that Responsible Body s pension liabilicies. Recognition of the liability to fund pension fund deficits on defined benefit pension schemes FRS 102 requires an entity that has entered into an agreement to reduce the historic deficit on a multi-employer pension Schème, to recognise the liability in accordance with FRS 102 section 28.13 and 28.13A. The Board has a payment plan with the Church of England Pension s Board to pay the Clergy Pension Scheme deficit over a ten-year périod luntil 20221. Upon transition. the Board has recognised the present value of deficit funding contributions. As at 31 December 2020. this amounted to £447.000 for the Clergy Pension Schemel2019. £821,000). The Southwell and Nottingham Diocesan Board of Finance Staff Retirement Benefit Scheme- Defined Benefits Scheme The Board operates a defined benefit pension scheme in respect of eligible employees whose employment began on or bèfore 1st April 1993. The Boèrd is required to follow Financial Reporring Standard 102 in disclosing the financial position of the scheme. The trustees of the scheme are required to act in the best interests of the Scheme's beneficiaries. The Scheme Trust Deed requires that one trustee be appointed from amonggt the active members of the scheme a member-nominated trustee. One trusteè is appointed from amongst the membership of Bishop'5 Council Ithe Board of Directors) and the third and final trugtee is the officeholder of the posr of Chief Executive of the Board of Finance. The contribution is determined by a qualified actuary on the basis of triennial valuations using the 'Attained Age Method, and the most recent valuation was at 31st March 2017. During Lheyear the Board paid contributions of £123,000 12019- £118.000I. The Board's agreed future contribution rate equates to 34010 of pensionable salariès Ipreviously 24%) and memberemployeescontributÈ Sok to the Scheme. The annual contribution to the scheme is charged to the Stat8ment of FinancièlActivities so as to spread the cost of pensions over employees. worP<ing lives with the Board. 2020 2019 The main financial assum tion are Basis 1.20Wo 3.40WD 2.40Wo 340 3.30% Basis Discount rate Inflation IRPII Inflation ICPII Pension increases Sala increases 3.40Wo 2.40 3.40Wo 3.090 From Ilanuary 2019 the assets are invested with Schroders with 75010 in equities and 250h in bonds. The overall expected return on assets assumption has been determined with reference to the underlying asset allocation on the assets held and th@ expected long-term rate of return on those asset classes at the y@ar end. The assets do not include any investment in the Board. The fair value of the assets at 31 December 2020 is £3,433,000 12019- £3.368,0001. Growing Disciples Wider Younger Deeper Page 59

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 27. PENSIONS Icontinuedl Amounts recognised in the Statement of Financial Activities: 2020 £000 1191 11041 2019 £000 1201 11321 Current service Icostl Interest Icostl Administration costs Interest on assets 69 92 154) 160) Reconciliation of assets and defined benefit obligations". Fair Value of assets.. £000 Defined benefit obligations.. £000 Asat ljanuary 2020 Interest orn assets Employer contributions 3,368 69 123 As at ljanuary 2020 Current service costs Contributions by Scheme participants Inter￿t cost 5,077 19 Contributions by Scheme participants Benefits paid 104 1256} Benefits pèid Experience loss on liabilities Changes todemographic assumptions Changes due to financial assumptions 12561 12271 1109) Return on plan assets less interest 127 794 As at 31 December2020 3.433 As at 31 December 2020 5.404 Net liability £1,971 Scheme deficit funding of £1.971,000 hès been set aside in a designated fund. Summary of pension liabilities 2020 £000 447 1,971 2019 £000 821 1.709 Church of En8land Pension scheme SNDBF Retirement Scheme 2.418 2,530 Included in.. Current liabilities Long term liabilities 375 2,043 369 2.161 2.418 2,530 Growing Disciples Wider Younger Deeper Page 60

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTES TOTHE FINANCIAL STATEMENTS Icontinuedl For theyear @ndod 31 December 2020 28. PRIOR YEAR COMPARATIVE CONSOLIDATED SOFA Unrestrlcted Re8trfctèd Endowtnent Total funds Funds Funds Funds 2019 Note £'ooo £'ooo £'ooo £'ooo Income and èndowments from Donations Deanery share Archbishops, Council Other donations 5.664 1.280 139 5.664 1,871 139 591 731 46 777 Other activities 447 449 Investments 996 282 1,278 554 Other 304 250 9.257 1,225 250 10,732 Expenditure on Raising funds Charitable activities 379 445 8,986 780 9,768 11.4551 195 Clergy pension scheme movement Church 5choo15 & Diocesan project5 other 11,4551 195 io 102 240 342 9,467 1,281 11,4551 9,293 Net incomtllexpenditurel bpfore InvestmÈnt galns 12101 1561 1.705 1.439 Nel gainslllo8sesl on investments Net incomellexpenditurel Transfers between lunds 494 1.075 1,267 2.836 14 284 1.019 2,972 318 4,275 Non-conlrolling inleresl other reGognised gain51llos5esl Gainslllo55esl from changes in rinancial assutllplions on defin benefit pension SGheme 13181 12 13511 13511 N•t movemènt In f￿ndS 13851 1,031 3.290 3.936 Total fund8 brought foJwaTd 13.408 7,383 53,159 73.950 Total funds carried fotward 21 13.023 8.414 56,449 77,886 Growing Disciples Wider Younger Deeper Pag& 61

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIALSTATEMENTS Icontinuedl For tho yearended 31 December2020 29. RELATED pAF￿yTRANSAGF1oNs Church Urban Fund ICUFI Joint Venture Thè Board of Finance and CUF are tlie founding members of a subsidiary of CUF,"Transforming NottsTogether'. which is a charitable company limited by guaranree and in partnership between the Board of Finance and CUF. There are 9 directors of which 4 are appointed by the Board of Finance, including the Chair, Revd David Mccoulough who is also an employee of the Board of Finance. He also has oversight of the worl< of nine part time staff who are employed by Transforming Notts Together. TNT paid the Board £84.490 12019- £40,477) in respect of reimbursement for salarie% and office costs. The balance outstanding at 31 December 2020 was £26,34812019-£9,9731. The Diocese of Southwell & Nottingham EducationTrust This Charity has been set up in response to the likely challense of a large number of Church of England Schools converting or otherwise becoming Church of England Academies under the Academies Act 2010. The Charity will perforrn a role in the Di(Kese in supporting Church of England Academy Trusts to fulfil their responsibilities in relation to their schools/academies and as a member of each of the Church of England Academy Trusts also to challenge and to hold governors to account in this regard. The Charity is also intended to operate as a sponsor or co- sponsor of Church of England Academies in the Diocese and elsewhere as required. The Trustees are lan GFiffiths. Revd Canon Markt Tanner. John Loughton. Martin Cooper and the Diocesan Director of Education. There were no transactions in the financial year. The Diocese of Southwell & Nottingham Multi AcademyTrust The company was set up in August 2013 and is a limited by guarantee without share capital. The company houses the church schools which have converted to Academy status. The directors are lan Griffith5. Roger Periam. H ilary Craik, Chris Moodie, An8ela Pae. John Hunter. Joanne Saville, and Nigel Frith.The Multi Academy Trust paid the 8oard £19.96612019- £36.4921 in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2020 was £NI L12019-£7.2181. Grant-making Ibeneficiary-selectionl policy Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry). Grants are paid to othèr connected charities and to other charitable projectswhich appear to the Board of Finance tosupport the furtheranceof the Board of Finance's objects. Other related parties Canon M Arlington, Chair of the Finance Committ& is a Governor of the Samworth Church Academy in Mansfield. Thebalance outstandingat 31 December2020was £8,26112019-£8.0971. Transactions during the year were £32.880 12019-£32,3201 in respect of reimbursement for salaries and expenses. Subsidiaries During theyear, the Board received loan interest from Wind FX Limited of £86,48412019 £86.4841. Wind FX Limited also paid the Board £3.000 12019 £10,000) tow3rd5 accountancy costs in the year. At 31 December 2020 Wind FX Limited owed the Board £864,84812019 £864.8481. SNDBF Solar Limited ow8s the Board £226.19012019-£226.1901 at 31 December 2020 and the Board OW￿ SNDBF Solar£102.04512019-£77,5491. Growing Disciples WAder Vounger Deeper Page 62

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE NOTESTOTHE FINANCIAL STATEMENTS Icontinuedl For theyear ended 31 December 2020 30. FUNDS HELDAS CUSTODIAN TRUSTEE The Board act5 as Diocesan Authority or custodian trustee for many trust Funds by virtue of the Parochial Church Councils (Power51 Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. Assets held in this way ère not aggregated in these financial statements as the Board does not control them. Each year an annual statement of value 15 made available to all PCCS. The market value of investment held on behalf of PCCS and others is £8.41 million. cost E4.Imillion 12019- E8,56 million, cost £4.13millionl. 31. DEVOLVED CAPITAL FORMULA Since April 2006. the Education Funding Agency IEFAI have paid devolved Formula Capital IDFCI, directly to schools or dioceses before the fund5 are spent on capital projects. This year education restricted funds recèived £444.635 on behalf of 8 schoo1512019- £406,877 on behalf of 9 schools). These funds are maintained in individual school ledgers with payment5 and governor5 IO0h contributions shown. The Schools Executive Officer monitors these accounts and advises schools of current balances andauthorisespayments.At theyearend thebalanceofthese DFCaccountswas£104,37112019- E133,7151 which is not included in these accounts. 32. COLLABORATION AGREEMENT In 2010 the Board entered into a collaboration agreement with 5 other parties to develop land for housing. The terms of theagreement are such that the Promoter has first call on any receipts from the housing developer, as they are responsible for putting the infrastructure into the site for it to be developed for new homes. Any surplus left at the end of the project will be shared amongst the members of the collaboration agr￿rnent. but at 31 December 2020, the timing and receipt of these funds cannot be measured with any certainty. During 2020 the four parcels of land owned by the Board were sold to the housing developer. but irn accordance with the Collaboration agreement the proceeds were added to the collaboration account to cover continuing infrastructure costs, not remitted to the Board. There is a fixed charge dated 11 April 2018. in favour of Homes and Communities Agency relating to the collaboration agreement, regardin8 a small piece of land that is part of the agreement owned by the Board. Growing Disciples Wider Younger Deeper Page 63

THE CHURCH OF ENGLAND Diocese of Southwell & Nottingham SOUTHWELLAND NOThINGHAM DIOCESAN BOARD OF FINANCE ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TABLE OF CONTENTS For the ear ended 31 December 2020 Page Number Administrative Details Chairman's Foreword Legal Objects Trustees, Responsibilities Strategic Report-. Strategic aims Activities and achievements in the year Future plans Financial performance Principal risks and uncertainties 14 Independent Auditor s Report 17 Consolidated Statement of Financial Activitie5 21 Consolidated Income and Expenditure Account 22 Company Balance Sheet 23 Consolidated 8alance Sheet 25 Consolidated Cash Flowstatement 27 Notès to the Financial Statements 28 Growing Disciples Wider Younger Deeper

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS For the ear ended 31 December 2020 Trustees In accordance with the Companies Act 2006, The Statement of Recommended Practice 2019 ISORP 20191 and Financial Reporting Standard 102 IFRS 1021, the Trustees Ifor the purposes of charity lawl and Directors (for the purposes of company lawl durin8 the year and as at the date of signing follow.. PRESIDENT The Bishop of Southwell and Nottingham, Right Revd Paul Williams BISHOP'S COUNCIL AND STANDING CONMIThEE OF THE DIOCESAN SYNOD (BEING THE FINANCIAL EXECUTIVE OF THE DIOCESAN SYNOD AND THE BOARD OF DIRECTORS OF THE BOARD OF FINANCE) EX-OFFICIO The Rt Revd The Bishop ofsouthwell & Nottingham The Rt Revd Th@ Bishop of ShepNood Thevery RevdThe Dean ofsouthwell The VenerableThe Archde3con of Newark lallbl (resigned IS January 2020. currently vacantl The VenerableThe Archdeacon OF Nottingham lal The Chairof the Houseofclergy ofthe Diocesan Synod Revd Canon M Adamslto30 November 20201. Revd S Hustwayte (appointed 10 February 20211 lal The Chair of the House of Laity of the Diocesan Synod Imr M Wilson) lal Ibl The Chair of the Finance Committee (Canon M Arlington) lal Co-opted The Revd Pshaw ELECTED BY THE SOUTHWELL & NOTtINGHAM DIOCESAN SYNOD CLERGY1S1 NewarkArchdeaconry121 Revd A Fletcher Revd Canon M Fshouler LAITY191 Newarli Archdeaconry141 Mr P Stanley (resigned 29 September 20201 lal Mr R Brand Mr C Perrett Professor P Harris Nottingham Archdeaconry131 Revd Canon S Silvester Revd C Bourne Revd S HustrNayte lal Nottingham Archdeaconry151 Mr C Slater lal Mrs S Dunster Miss S Waterston Mrs J Gray Mrcm Bolton lal MemberoF the Finance Committee Ibl Memberofthe Board ofEducation PRINCIPALOFFICERSANDADVISERS Diocesan Chief Executive &CompanySecretary Diocesan Registrar. Bishop's Legal Secretary & Legal Adviser to the Board of Finance Mrm Lcooper BAIHonsl FCAATII MrsAJ Redgate LLB Growing Disciples Wider Younger Deeper Page I

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE ADMINISTRATIVE DETAILS For the ear ended 31 Decembor 2020 HEADS OF DEPARTMENTS Director of Discipleship & Ministry Director OF Partnerships & Mission Director of Education & Mission Director of Communications Director of Parish Support Director of Finance Revd Canon Dr R kellett 8Th{HO￿l, BSclHonsl. MA. PhD Revd D Mccoulough BAIHonslMA Mr N Frith BA MA NPQH lar¥K)inted2March20201 Mr R Ellis (resigned 31 May 20201 MrFMcNish Mrs R Al Bowes FCCA BANHERS INVESTMENT MANAGERS Lloyds Bank Nottingham CCLA Central Board of Finance of thechurch of En8land Cazenovecapitalmanagement Ltd Mayfair Capital Investment Management Ltd Ruffer LLP SOLICITORS CHARTERED SURVEYORS Rotheras. Nottingham Jas. Martin &Co, Lincoln Tanners, Nottingham Geo Hallam & Sons. Nottingham MINING. MINERALS. ENGINEERING & ENVIRONMENTALCONSULTANTS INSURERS Eccle5i3stical Insurance Group Mineral Surveying Associates AUDITOR BHPLLP 2 Rutland Parl< Sheffield S102PD REGISTEREDADDRESS Jiibilee House Westgate Nottingham NG25 OJH Growing Disciple5 Wider Vounger Deeper Page 2

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CHAIRM/KN'S FOREWORD For the ear onded 31 December 2020 The past year represented a time of exiraordinary challenge that has affected the lives of everyone living in Lhe diocese and all those who share in the mission of the Church acr055 our parishes. 5choD15 ar)d diverse communitie5. 2020 siarted well with some clear progress in areas of our diocesan mission as we continued to fulfil rhe aspiration5 set out wiLhin our Growing Disciples srraie8y. At the centre of all our plannin8 and praying isacommitmeni toannounc@ theGood News oFGod's love inlesuschristand to invite all people to respond to hi5 saving gracÈ. At the beginning of the second decade of the 21" century we are convinced that there 15 nothing berter anyonecan dowirh their life than become a follower oflesus Christ. This realiiy is seer) in the stories of people of all backgrounds and ages comin8 ro faith in God. It a150 lies at the heart ofdecision makin8, managemeni ofresource5. creative devÈlopments,aswell as ¢h&st@ady and faithful 0rn8oin8 ministry of every parish. A5 a diocese we are a mission enrerpris@wh05e roots are woven in the fabric ofwhai ha5 made ar)d Shaped communiti@5 acr055 the region over many ceniuries. We are also a dynamic network of local churches whose common purpose is to live for Christ in our present age, mutually supportive of one another above all in seeking fresh ways to make Christ known, as well a5 demonsrraiing his tran5formlng love in ways that can bring hope and healing to all. Asignificant expressiori of our God-given ministry is ihrou8h our Church schcK)ls who have excelled in Iheir mission through Lhe past year, serving with immense courage and crearivity through every rwisi and turn created by thÈcoronaviru5 pandemic. Tr4arch 2020 brought about a dramatic change to &vEry or)e living in our nation. as the firsL restrictionswere put in place to suppr@55 the risin8 raios of coronavirus inFeciions. Within a few wÈeks the government announced a national'lockdown. which meant that all in-person 5ervice5 were suspended. Within a shorr time cler8y. lay min15tÈrs and con8re8ation5 across the diocese found new ways to 5UStain Lhe life of the church and Serve the most vulnerable In our communities. This included new on-line services and small groups to nurture faith in such difficuli Limes. as well as practical carÈ with churche5 supplying foodbanks offering care packa8es and joining with other stake holders to provide Support to rhose whowere self- isolating or livingalone. Ourchurch buildings may have been closed for a time but rhechurch wasvery much alive. Comin8 Out of Lhe first'lockdown,, while recogni5ing the challenges that were still ahead until vaccinations could found. many churches established patterns of ministry that ir)cluded on-line and in-person Services and groups. In the meantime. the Bishops Core Team began to develop a series ol worki Slreams that would support the accelorated change creaied by the circumstances ol coronavirus. The Bishop'5 Council, with slgnificant engagement from Area Deans,lubilee House staff and otherclergy and lay leaders. was able to hÈlp shape thi5 work w rhat it can be most effective while we discern how God is LVUiPPirn8 his Church for a new season of fruitful ministry. The key streams of worl< do nor create a new operaiional strategy but are intended to facilitate the accelerated chan8e that is already happenin8 Within our commitment to Growing Disciples. Seven strÈams ofwork Transformation Change Appointments Increasing the numbÈr of clergy apwintments that enable si8nificant change rhar can facilltate growth.. many of theso will be time-5pecific appointment5 that ensure we do not reduce the level of stipendiary ministry while maintaining flexibility in future deployment planning in the mpdium rerm. New modols of Local Mi55ional L@adership- Developing mor& quickly our planning in tralnin8 afbd commissioning people who are equipped and called to lead l(Kal mission. within new Initiativ￿ and existing parishes. Youth and Children Growing Disciplos Task Group- To build on the good hÈriiage ol children and youth ministry in the diocese. a5 well as rhe recent experience wirh the YoungLife learning communities, toaddress thesignificant neod 10 revitali5eour mission amon8 and wilh children and youth.. Includin8 the new Fx>55ibiliriesworkin8 in partnershipwiih our Church schools. A task group wès esrablishEd under the leadership of the 8ishop of Sherwood, re5ulring in an application for srrategic Development Fundin8 to help facilitatÈa and ambitions programme of mission. Growing Disciples Wider Younger Deeper Pase 3

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE CHAIRMAN'S FOREWORD Icontinuedl For the ear ended 31 December 2020 Communications Review- To review all aspeccs of our present communication strate8y in light of rhe newopportunities the past 12months has generatedwith social media plètforms. especially as we engageour'core consrituency as well a5 those prÈsontly beyond the life of the church Increasln8 Diversity- With renewed vision for a more diverse church. which includes addressing systemic issue5 that unintentionally limits our mi55ion and undermines the gospel. This is particularly in response to the issues raised by the death of George Floyd and the challenge it created for the Church. Well-being and Resilience Under the direction of the Principal for Well-being and Minisrry Development the diocese is developing new r&source5 ènd increasing awareness in addro55ing Relational, Physical. Mental and Spiritual Health. Prayer strream - Prayer is the engine of the Church in mission and in the cont&xt of increased challenge and change in society. we are 5eeklng 10 foster an inC￿a51n8 Èngagement with patterns of prayer rhat can 5UStain and inspire radical discipleship. Supporting the presenr and future shape of ministry in the diocese. weare grateFul that God has continued to call people Into new sph8re5 of service. as incumbents. curates, head teach@rs. into other forms of l&ader5hip in local churches and across chaplaincies. We have also been pleased iowelcome a new Diocesan Chief Executive. Director of Education. Senior Safeguarding Lead, as well as celebratin¥ tho consecration of a new 8ishop of Sherwood. All of these people bring new insights and gilts to the LIFÈ of the diocese at this time and we are deeply Ihankful lor the contribution they have made even viirh the limitations placed on bein8 able to meot in-person with con8re8ation5 and collea8ues. Ens(Jrin8 that we embed good Safeguarding practice5 into every part of the life of the diocese is esseniial to our mission. Our new Senior and A55lStant Diocesan Safeguarding Advisors have brought new skills and experience to this work in 2020. while we have a150 underiaken the first phase of the importani Past Ca5e5 Review 2. As the Church that bear5 the name of our Saviour,lesus Christ. we can be a community abounding in hope in a climaro that Is ea5ilyoverwhelmed by5adness and uncertainty. It iswhy,as theologianlurgen Moltmann puts It. Christian5 are'endLJringly capable of Furur&'. l am confidÈnt that for this reason we are well placed to respond to the unknown challenges that are facing our society in the months ahead, as well as the opportunities rhat God pre5enrs for his Church to brin8 eternal hope to our world. The extraordinary gener051ty across many of our churches in meeting Parish Share throLJgh such a difFicult year in 2020 hès been particularly hearioning. Of course some have struggled and rhe year to come will rernain challenging for all as we seek ro resource the rninistry we believe is needed. I pray thar our financial givin8 ever more reflects our hopÈ-filled vision OF a Church that has Good News for people overywhere, as we play our part in bringing Iosus-shaped change to our world, starlin8 alway5 in the nei8hbourhcth where we live, work and worship. With ever blessing The Rt Revd Paul Williams 8ishop of Southwell & Nottingham Growing Disciples Wider Younger Deeper Page 4

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT For the ear ended 31 December 2020 The Trustees. who are also Directors for the purposes of company law, present their report and the audired financial statements of the charity for the year ended 31 December 2020. The trustees h3veadopted the provisions of the Statement of Fiecommended Practice ISORPI "Accounting and Reporting by Charities IFRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been prepared accordance with the accounting policies set out in notes to the accounts and comply with the chèrity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland published in October 2019. The Board 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 Glebe Measure 1976., the repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings rvleasure 1972., the management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education Measure 1991., the custodian of permanent endowment and real property assets relating to trusrs held by Incumbents. Archdeacons and Parochial Church Councils Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Power51 Measure 1956. The Directors￿rustees are one and the same and in signing as Trustees they are also signing the strategic report section5 in their capacity as Directors. as This combined report satisfies the legal requirements for.. a Directors, Report of a charitable company, a Strategic Report under the CompaniesAct 2006 and a Trust&s' Annual Report Ljnder the Charities Act 2011 The strategic priorities of the Board are established by the Diocesan Synod in communication with Deanery Synods, Parochial Church Councils IPCCSI. and the Bishop of Southwell & Nottingham lin respect of his responsibility for the provision of the cure of souls). To this end, significant time and èffort is committed to communication between and with these bodies. aswell as with the church nationally," including an annual series of consultations on Specific matters relating to the priorities for the forthcoming year, including the Diocesan Budget. LEGAL OBJECts The principal object of The Southwell & Nottingham Diocesan Board of Finance I'the Board") is to promote. assist and advance the work of the Church of England in the Diocese of Southwèll & Nottingham by acting as the financial executive OF the 5outhwell ènd Nottingham Diocesan Synod. Growing Disciples Wider Younger Deeper Page S

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December2020 PUBLIC BENEFIT The Trustees are aware of the Charity Commission's guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Board. The Trustees believe that. by promoting the work of the Church of England in the Diocese ,of Southwell & Nottingham, it helps to promote the whole mission of the Church (pastoral, evangelistic. social and ecumenicall more effectively, both in the diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by.. providing facilities for public worship. pagtoral care and spiritual, moral and intèllèctual development, both for its members and for anyone who wishes to b8nefit from what the Church offers., and S8lect suitable accounting policies and apply them consistently Observe methods and principles in the Charities SORP 2019 IFRS1021", Make judgemenrs and estimates that are reasonable and prudent.. State whether applicable accounting Standards have been followed. subject to any material departures disclosed and explained the financial statements., 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 r@5ponsible for P<eeplng dequate accounting records that disclose with reasonable accuracy at any timè the financial position of the charitable company and enable them to ensure that the financial statement5 comply with the CompaniesAct 2006. promoting Christian value5 and service by members of the Church in and to their communities. to the benefit of individuals and society as awhole. They are also respongible for safeguarding the assets of the Board and hencè for taking reasonable steps for the prevention and detection of fraud and other irre8ularities. TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of the Board for the purposes of Company Lawl re responsible for preparing the Trustees, Report (including the Strategic Report) and the financial statement5 in accordance with applicable law and United Hingdom AccoLJnting Standards (United Hingdom Generally Accepted Accounting Practice). In so Far aware the trustees are aware.. There is no relevant audit information of which the charitable company's uditor is unaware.. and The trustees have taken all steps that theyought to haveto makethemselves aware of any relevant audit information and to establish that the auditor is aware of that information. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources. including the income and expenditure of thè charitable company for that period. The Trustees are responsible for the mèintenance and integrity of the corporate and financial information included on the Board's website. Legislation in the United ingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In preparing these financial statements the Trustees are required to.. Growing Disciples Wider Younger Deeper Page 6

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 TRUSTEE RECRUITMENT. SELECTION AND INDUCTION The annual budget has been set against this background. designed to provide adequate r&sources to fund the present, as well as to shape the future, in a way that is fit for thÈ mission task. As always it prioritised the appropriate provision of stipendiary parish clergy and licensed lay workers across the diocese. In terms of our future shape, it recognised the changing patterns of ministry deployment. the n&d to support local leadership in the deaneries and to engage in partnership with various civic. community and business interests. Trustees are members of the Bishops Council & standing Committee and are selected as set out in the section on Structure and Governance. Trustees are given induction at the outset of the triennium and at other times as appropriate. They ère also informed beforè seeking membership and, at all other relevant times. of the role and function of the Committee. Some staff hold the ritle of 'Director', but thi% relates to their Function within the organisation and hag no legal meaning within the terminology associated with the Companies Act. All Trust￿5 are requir&d to sign the code of practice and maintain their entry in the record of declarations of interest and loyalty. The Boards strategy for achieving its objectives IS to adopt a methodology of limiting central source5 of expenditure in Favour of both releasing funds for mission and minimising the increase in Parish Share. The Board continues to maintain the 50und financial structure needed to enable it to continue supporring the clergy and lay workers through the payment of stipends, managing parsonages and other ministerial housing. It provides resources in support of the ministry of both cler8y and lay people in parishes across the diocese. VOLUNTEERS The Board i5dependent on the huge number of people involved in church activities both locally and at dioCe￿N level. We believe that the number of active volunteers lor volunteer hour51 given to the mission and ministry of the church is a key indicator of the health of the church. The service provided to a community through church volunteering also has a significant impact on peoples relationship to the church particulèrly in time5 of crisis. Within this cont&xt, the Board greatly values the considerable time given by all the committee members across the diocese in pursuit of the mission OF the Board. OBJECTIVES FOR YEAR The objective of the Board is to provide financial resources for the achievement of the prioritie5 of the Bishop and Diocesan Synod. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR 2020 threw up challenges for all Dioceses but we adapted to digital communications and social media channels to share inspirations and news with communities and followers across the diocese. During the y8ar we have developed the workplace chaplaincy further by supporting a new chaplaincy team in Sherwood and in partnership with Nottinghamshire Police have relaunched chaplaincy support ro the force. Transforming Notts Together has tapien on more staff to develop Near Neighbours community cohesion work and. real MISSION STATEMENT Our mission statement calls for each member OF the church at every level of diocesan life to join together in the transforming mission of God, makin8 their own unique contribution to living worship. growing disciples and seeking justice. STRATEGIC AIMS The Board resourceg the Christian tasks of mission and ministry through 250 parishes and other networkis. Growing Disciples Wider Younger Deeper Pa8e 7

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl For the ear ended 31 December 2020 with Covid Recovery funds, established Grief and Bereavement Support Workshops and supports 10 churches exploring setting up bereavement groups or Griefcafes. We have algo supported the BAME Advisory Group in the diocese. met with Majority Black Led Church Leaders Nottingham and participated in Nottingham Citizens, hosted meetings in response to the killing of George Floyd. After an encouraging starr to 2020 in terms of churches engaging with givin8 initiatives. Covid-19 struck and all normal processes ground to a halt. After a few weeP<s, as we adjusted to the new world of lockdown. we quickly endorsed and publicised the C of E's online giving offering through Sumup and Give a Little. with an encouraging take up by parishes. This has continued to grow throughout the year. and enabled churches to bring in donation5 from a new source as they lost income from envelope giving, hall rental and fundraising events. This has also allowed churches to place "donate now buttons on their websites and ACNY entries, place QR codes across social media and printed materials and 8row in rheir learning of di8ltal platforms for giving in a way that would nèver have b￿n envisaged under normal times. the Rev d Andrew Emerton. Andy began his journey to ordination from SoLJthwell Minster and travelled north to a service at YorP( Minster. which was lived streamed to thousands of viewer5 from across the globe, overcoming some of the Social distancing restrictions that were in plèce at that time. This year ordinations, which usually tal<e place in july. were delayed until September, and by necessity. took on a very different feel. With attendance inside the minster still largely prohibitèd, our celebrations had a more reflective tone and WÈ witnessed a most challenging return to school for our staff and pupils, which was reported by ITVCentral News who visited HucK(nall National CofE Primary school to see the wellbein8 and safety measures put swiftly into place for pupils attending classes after many months of home schoolin8. Both Bishops have been interviewed by BBC Radio Nottingham throughout thè year, offering messages of hope and support in these difficult times. Our Christmas campaign,Light in the Dar￿neSs. saw Bishop Paul in more reflective mood a5 he brought this most challenging year to its close. Many thousands of people watched thisyear svideo and enjoyed a series prayers and reflections we shared throughout the Advent period. The Discipleship and Ministry team has continued to be active in training and developing both lay and ordained ministers moving its provision promptly to online teaching to meet the challenges of the COVID-19 restrictions. They ran a successful diocesan conference online with over 200 people in attendance and Bishop Emma Ineson speak on Godly Ambition, and the Church Schools Leaders Conference was also held on Zoom. They continue to develop vocations to lay and ordained ministries welcoming 14 new trainee for Licensed Lay Ministry and 11 new ordinands. Despite the pandemic. 4 New As we enter 2021. we are encouraging churches to prepare for giving initiativeg once more. without the social contact of previous years, but utilising the enthusiasm and dedication of hard worhing folk in our churches and communities to grow generosity through discipleship and learning. After quiet summer months, September brought a flurry of updat8s and inspiring news stories. beginning with St. Wilfred's Church, Scooby and Saint's Church, Babworth, who were both featured on 8BC's Songs of Praise on Sunday 13, September as part their 400 years Pilgrim Centenary Celebrations. Inthe same month, wecelebrated the ordination of the new Bishop of Sherwood. Growing Disciples Wider Younger Deeper Page 8

SOUTHWELL & NOftlNGHAM DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT Icontinuedl Forthe ear ended 31 December2020 Worshipping Communities were started in 2020 bringing the total launched to 21. 2020 2019 Percentage of parish Share received 87.3W. 94.54> We supported 5 members of the clergy with their retirement plhns and asslsted with moving 18 clergy families in housing in the Diocese. Average return investments rate 2.7590 3.3 on FUTURE PLANS In 2021, the focus on our response to climate change will continue. aiming to cut our carbon footprint and promote eco church nd to encourage further our understanding of caring for creation as central to whole life discipleship. The Diocesan Advisory Group will also instigate a strategy for our church building5 across the Dioc8se and aim to improve our church building carbon footprint and increase awarèness and use of environmental products and services. Both of the KPIS above have been impacted by the effect of Covid 19. but we appèar to have weathered the storm. as increased economic activity is on the horizon. As required. Board reviewed the investment returns with the investment managers in November 2020, and the Board decided to change one of the investment managers nd leave the targeted return on the investments unchan8ed. The investments in renewable energy are continuing to show a return. There will be continued need to work with cross agency partners to tackle homelessnegs and modern slavèry, and to support local church responses to the needs of rough sleepers refuge￿ and a5yIu seekers, in the city and county. FINANCIAL PERFORMANCE The main income to the Board is from parishes giving Parish Share, which has decreased by £226.000 this year. The Trustees are immensely grateful to all the parishes who. during the Covid 19 pandemic continued to contribute to parish share, and supported Ministry in the Diocese. We cannot achieve thi5 Wlthout their support. We will a150 support the ministry of chaplains and sector ministries by holding a chaplaincy gathering with the Bishop of Sherwood in the Summer and aim to appoint a chaplain in Hucknall to complete our network of chaplains, and we are exploring ways supporting the partnership betw*n churches and schools. We will also encourage parishes to consider local models of town centre or high street chaplaincy such as those in Beeston and Sherwood. 2020 £000 5.438 2.149 2019 £000 5,664 1,871 1 INCOME 0/0 of Total 50.2 19.8 Parish Share Archbishops, Council Allchurches Trust Fees Investment income 140 136 278 315 1,089 ' 1.278 KEY PERFORMANCE INDICATORS The Board regards its key performance indicators ag follows.. 10.0 The Trustees acknowledge with th3nks the annual distribution from Allchurches Trust. The other grants received from Archbishops Council dLJrin8 2020 are £601.000 Strategic Development Fund monies. which 15 matched funded by the Board and £1.266.000 Lowest Income Growing Disciples Wider Younger Deeper Page 9

SOUTHWELL & NorfiNGHAM DIOCESAN BOARD OF FINANCE TRUSTEIS. REPORT Icontinuedl Forthe ear ended 31 December 2020 Communities Fundin8 to support mission in our poorest parishes. We also received a Covid 19 Sustainability grant from Church Commissioners of £250,000 to contribute towards our exceptional 10sses this year. and we are in receipt of Strotegic Ministry funding for additional curates of £23.000. Board. whose value amounted to £34.5 million 12019.. £37.5 millionl. 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 Board. Restricted and endowment funds As set OUL in note 23 the Board holds and administers a large number of restricted and endowment funds. ￿ at 31 December 2020 restricted funds totalled £8.8m12019'. £8.4ml and endowment fund5 totalled £58.8m 12018". £56.4ml. Net out80ing resources in the education restricted fund. before investment gains, amounted to £31.000 12019- £33.0001 and resources were mainly used to finance the salaries of those Education Department staff with responsibility for church schools and academie5. Ouè to the Covid 19 pandemic, and the massive changes in operations due to remote working, many things were done differently in 2020, and the effect on the budgeted expenditure and income was huge. The Board took advantage of the Governments job retention scheme. which covered £95.000 of salary costs. and all our staff moved to remote working. We invested in online meeting platforms and internet based telephone systems and the support for Ministry in the Diocese continued. The Board managed net gain before investment gains and losses of £333,000 in the general fund 12019." loss £210.0001, largely due to the Covid Sustainability Funding we received from Church Commissioners. Designated funds The Trustees may designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to be prudent. Such designated reserve5 are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer required. A description of each rÉ%erve together with the intended use of the reserve is set out in note 23. At 31 December 2020totaldesignated reserveswere£lO.6m 12019.. £10.3ml. There is a balance of £1.9m set aside in a designated Fund to finance the funding shortfall on the closed lay staff defined benefit pension scheme to eliminate the deficit by March 2025. The capital values of investment5 have had a better year than last. and the year end position of £42.531.000 is an overall increase of £1.334.000. The investments have rallied aFter the valuation drop during March 2020, but there has been an impact on investment income in 2020. The capital values of agricultural land has remained the same. The unrealised gain on investments at the year end was £2,S36.000 The Board received £1.448,463 during the year relatin8 to the sale of glebe assets. REVIEW OFTHE BALANCE SHEET The Trustee5 consider that the bèl3nce sheet. together with detai15 in notè 22. show that the restrictèd and endowment funds are held in an appropriate mix of investment and current assets given the purposes for which the funds are held. While the net 3sset5 at the balance sheet date totalled £80.626.00012019'. £77.886.0001 it must be remembered that included in this total are a considerable number of properties, mostly in use for the ministry and mission of the Free reserves The Board of Finance has considerable responsibilities includins the remuneration of over 120 stipendiary clergy. the employment of 65 full or part time staff and the upk<eep of nearly 200 houses. Most of the Board's income is voluntary with half coming from Parish Share and the balance made upofgrant income from Archbishops, Council and income investments and oth8r sources. In light of this and the flow of income. theTrustees havedeterminèd that Growing Disciples Wider Younger Deeper Page 10

SOUTHWELL & NortlNGHAM DIOCESAN BOARD OF FINANCE TRUSTIES. REPORT Icontinuedl FOF the ear ended 31 DecembÈr2020 it is prudent to hold free reserves at leasc ÈqLJivalent to gen&ral fund expenditure over two months i.É. £l.Sm. +4%. The Diocese has historically been an owner of agricultural land, currently 3,721 acres including 3 farms. The growth in value of agricultural land Since 2006. has resulted in nearly 50010 of the total value of assets being in land. The current policy is to reduce the amount of land over time when rhe opportunity arises to sell freehold land.. the proceeds being invested in a wide range of financial assets which are more liquid and of a higher annual income retLJrn than land. A small investment is also held in a specialist commercial property fund managed for charity clients. Dunham House. a residential apartment block in Southwell. is managed to produce a rental return. At 31 December 2020, the Board of Finance's free reserves were £3.3 million12019 £3.4ml. The trustees consider that with the continued uncertainty around the economic situation together with the changes in thé way that Diocese are resourced from Church Commissioners. and the continuing pressure on parish share, the increased holding of frÈe reserves is prudent. Subsidiaries During 2015. the Board set up twosubsidiary companies. SND8F Solar Limited is a wholly owned subsidiary rhat manages the £226,000 invested in the installation of solar panels on 50 benefice houses. Wind FX Limited is 600h owned by the Board and operates a 500F<w wind turbine. The investments into these companies, by way of loan capital, totalled £1.090.000. Funds which may be needed for working capital in the short-term are held a5 deposits with the Central Board of Finance of the Church of England and the Board's banpiers, Lloyd5 Bank plc. Investment policy and performance The Board empowered by its Memorandum of Association to invest monies nor immediately required for its purposes. In addition. the Board acts as tru5t8È of a number of trust funds, and these must be invested in accordance with the related trusts. The Board's policy is to review regularly the assets of each fund. Notes 22 and 23 provides details of the assets of each fund. together with the relat&d purposes, and notè 16 summarises the movements in investments during the year. FUNDS HELD ON BEHALF OFOTHERS As Custodian Trustee.. The Board is Custodian trustee of assets held on permanent trust by virtue of the Parochial Church Counci15 Ipowersl 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 ag the Board does not control them. and they are segregated from the Boards own assets by mehns of a separate b&nl< account and accounting system. Further detai15 of financial trust asset5. whose market value amounted to £8.4m at 31 December 202012019." £8.5ml. are available from the Board on request. The implemenration strategy for the di(Kes3n Jssets is managed by a subgroup of Finance committee on behalf of Bishop's Council. The strategy is to grow the value of the diocesan asset5 and their annual income with a due regard to the level of ris associated with the ownership of particular assets. The Board appoints managers to advis@ and manage investments who are instructed to apply the ethical investment policy of the Church of England. Investment managers are tasked with a return of RPI On behalf of Schools." The Board of Education las incorporated within the Board) receives conrributions from 80vernors of church schools within the Diocese in connection with major repair and capital projects to church schools and also Government 8rants in connection with the same. The Board of Education administers th@semoniesas managingagent and makes Growing Disciples Wider Younger Deeper Page 11

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 appropriate payments to contractors for work carried out. At national level the Diocese relates to the Archbishops, Council, the Church The monies do not belong to the Board of Education and a5 Such the receipts and payments are not treated as income and expenditure in the Statèment of Financial Activities. Any monies held at the balance sheet date are treated as creditors on the balance sheet. The amount included in creditors as at 31 December 2020 is £104,371 12019.. £133,715). The income and expenditure relating to school projects not rèflected in the Statemenr of Financial Activities amounted to £444.635 in 2020 and £406,877 in 2019. Commissioners and the ChLJrch of England Pensions Board. Further information can be found at www.church-of-en land. The financial transactions of these bodies do not Form part of these financial statements. Each diocese is divided into benèfices which are made up of parishes. The priest of a benefice is an office holder who shares the cure of souls with the Bishop. Matters relating to finance and parish owned property in a parish. are the responsibility of the Parochial Church Council, each of which is an individual charity separate From the Oiocese. Benefices are grouped together in nine Deaneries which are units of mission, conduit of communication and whose memberselect the membersofGeneral and Diocesan Synod. GRANT MAKING POLICY Grants are made to the National Church to cover a proportion of its central costs and Iso to cover the cost of training for ministry. Grants are paid to other connected charities and to other charitable projects which appear to the Board of Finance to support the furtherance of the Board of Finance s objects. Southwell Minister is the cathedral church OF the diocese and is itself a separate legal entity. Copies of its annual report and financial statements may bè obtained from the Cathedrèl Administrator, Southwell rvlinster. Church Street, Southwell, Nottinghamshire, NG25 OHD. Mission Development Funding from Archbishops, Council hès now ceased. so the designated fund will be used to support the existing projects. The Board of Finance 3nd Diocesan Synod-. Within the Diocese there are two major bodie5 - the Diocesan Synod and the Board of Finance.. the membership of both is coterminous Southwell and Nottingham is one of 41 dioceses in the Church of England covering the whole of Nottinghamshire and a small section of South Yorkshire and North Leicestershire. It Is administered through the 8oard. a charitable trust company limited by guarantee. The Diocese is arranged as 2 archdeaconries. Newark covering the north part with 4 deaneries and Nottingham the south with 5 deaneries. In total there are some 250 parishes. Board of Finance.. The company, Southwell & Nottingham Diocesan Board of Finance, was formed to manage the financial affairs and hold the assers of the Diocese. It was incorporated on 5th June 1891 as a charitabl@ trust company limited by mèmbership guarantee (No. 341651 and its governing document5 are the Memorandum and Article5 of Association. The Board of Finance is re8iStered with the Charity Commission (No. 2493591. Each Diocese is a separate entity led by the Bishopand is governed by thecanons ofthe Church of England and the Acts and Measures of General Synod as well as state legislation that relates to companies and charities. In Southwell and Nottingham, the Diocesan Bishop is assisted by the SufFra8an Bishopofsherwood. The company, originally called the Southwell Diocesan Finance ￿SOcIation, changed it5 name to the Southwell Diocesan Growing Disciples Wider Younger Deeper Page 12

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 Board of Firnance on 18 january 1932. On 28 February 2006, the company changed its name to thesouthwell & Nottingham Diocesan Board of Finance. from the Archdeaconry of Newark) and 10 lay persons elected by the members of the House of Laity representing deanerie5 16 from theArchdeaconry of Nottingham and As a memberofthe Board, each member of Synod has a personal liability limited to £1 under their guarantee as company members in theevent ofits beingwound up. 4 from theArchdeaconry of Newark) and up to4 co-opted members of Diocesan Synod. Under the constitution of the Diocesan Synod. Bishop's Council has the following functions.. Diocesan Synod.. Diocesan governance is by Diocesan Synod which is an elected body with representation from all parts of the diocese. Membership consists of ex-officio members, including the Bishops and Archdeacon5. clergy members elected by the house5 of clergy in Deanery Synods. lay persons elected by the hoLJses of laity in Deanery Synods. plus up to 20co-options to plan the business of the Synod. to initiate proposals for action by the Synod and to advise it on matters on policy.. to advise the Diocesan Bishop, on any matters which he may refer to the Council., subject to the directions of the Synod, to transact the business of the Synod when the Synod is not in session., to appoint members Of committees or nominate individuals for election to committees., and to carry out such functions as the Synod may delegate to The Diocesan Synod usually meets twice a year. Its role is to,. consider matter5 affecting the Church of England in thè diocese., act as a forum for debate of Christian opinion on matters of religious or public interest., advise the bishop where requested., deal with matters referrèd by General Synod.. and provide for the financing of the diocese. Decision Making Structure.. Corporate priorities and the overall financial strategy for the Di(Kese, in its primary object to promote, assist and advance the work of the Church of England within thè Diocese of Southwell ar)d Nottingham. are set by the Diocesan Synod and the Board. Many of Diocesan Synod's r@sponsibilities have been delegated to Bishop's Council. The company meets once a year in general meeting to receive and approve the annual report and financial statemènts and to appoint the auditors. The Diocesan Synod each year receives and agrees the annLJal budget, prepared and approved by the Board. The Trustees. meeting within the context of the Bishop's Council & Standing Committee. hold up to eight meetin85 during the year to formulate and coordinate policies on mission. ministry and finance. Trustees rely upon the Diocesan Chief Executive and their team six departmental directors for the delivery of theday to day activities of the company. The The Bishop's Council land Standin8 Committee of the Diocesan Synodl.. The members of the Bishop's Council are the Board of Trustees and Direcrors of the Company. Bishop's Council consists of 8 ex officio members (the Diocesan and Suffragan Bishops.. 2 Archdeacons., the Dean.. the Chairs of the House of Clergy and House of Laity," and the Chair of the Finance Committee). 5 clergy elected by the House of Clergy from among their number 13 from theArchdeaconry of Nottingham and 2 Growing Disciples Wider Younger Deeper Page 13

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTIES, REpofff Icontinuedl For the oar ended 31 December 2020 Diocesan Chief Executive is given specific and general delegated authority to deliver the business of the Board in accordancewith the policies framed by the Trustees. Cotjncil are also the members of 2 statutory committees.. detail of diocesan finance. to set up the Audit Committee which advises the Finance Commirtee and thereby Bishop'5 Council, in the discharge the Trustees, re%ponsibilities for accounting policy, internal control, financial reporting and risk management. Parsonages Committee, which is responsible for determinin8 policy and making major decisions concerning the man&8ement of parsonage houses in each benefice. team vicarages and houses owned by the Board of Finance. Diocesan Mission and Pastoral Committee, which is responsible for the task of recommending pastoral reorganisation to the Bishop. Remuneration ey Per50nnel.. Emoluments of higher-paid employees are determined by a remuneration group consisting of the Chair of the House of Clergy, the Chair OF the House of Laity. and the Chair of the Finance Committee. A job evaluation scheme is used to determine the salary grades of employed posts. Office holders are paid either the Diocesan stipend or that advised by the Archbishops. Council acting as the Central Stipends Authority. management. Other statutory committees include.. Diocesan Advisory Committee, which advises on matters affecting church buildings and places of worship including the granting of faculties. the use and care of places of worship and their contents and the care of churchyards. Southwell & Nottingham Diocesan Board of Patror)aEe. which is constituted under the provisions OF the Patronage (Beneficesl Measure 1986. GOING CONCERN The financial statements have been prepared on a going concern basis as the trustees believe that, despite the uncerrainty of the economic impact of the Covid 19 virus pandemic, the Board has sufficient monetary reserves to meet all their obligations as they fall due. The trustees consider that given the level of inve5tmentg and reserves held the going concern basis is appropriate. PRINCIPAL RISHS The Trustees are responsible for the identification, mitigation and or managemènt of ri51< To achieve this, a register of all the risP<s identified is maintained and. alongside it. a rnanagement nd mitigation srrategy formed. Thi5 IS subject to review by the Trustee5 on an annual b35lS Wlth the responsibility for delivery of the mitigation strategies identified by it, being delegated to the Chief Executive. In addirion to the statutory committees Bishop's Council has set up the Finance Committee. which has written terms of reference. to advise it on all financial matters. The Finance Committee meets regularly. approximately five times each year and work5 c105ely with the Diocesan Chief Executive and Director of Finance. The Finance Commitree has decided that in order to give considered advice to the Bishop's Council and to understand the Growing Disciples Wider Younger Deeper Page 14

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES, REPORT Icontinuedl Forthe ear ended 31 December 2020 The risk register identifies three areas where the risk of either failure to act or thè impact of the events is considered 'high'. These areas and the associated mitigation strategies are detailed in the table below.. Ris1< Type l Risk Reputational Safeguarding & Inclusion of children and vulnerable adults.. currerit safeguarding incident by an individual associated with the Diocesè or any church in our Diocese and adverse publicity relating to safeguarding failures in the past or present. Mitigating activity Safegu3rding advice is provided by a dedicated Safeguarding team Policies are ali8ned with those of the national church Training is compulsory for all relevant stafFand office holders Financial Parish Share collection Is considerably less than IOO°h. Collection statistics are produced and circulated on a monthly ba51S to Deanery & Diocesan personnel Deanery finance per50nnel are expressly taslied with identifying. reporting on and supporting those parishes where there is considered to be a significant ris of under-collection Reputational IT.. System failure. and Financial The disaster recovery plan is reviewed on an annual basis Backups are made on a regular basis DISCLOSURE OF INFORMATION TOTHE AUDITOR We. the Director5 of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that.. there is no relevant audit inform3tion of which the charitable company s auditor is unaware, and we have tak(en all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant information and to establish that the company's auditor is aware OF that information. In approving the Trustees Report. we also approve the Strategic Report included therein, in our capacity as company directors. Growing Disciples Wider Younger Deeper Pag@ 15

SOUTHWELL & NOTtINGHAM DIOCESAN BOARD OF FINANCE TRUSTEES. REPORT Icontinuedl For the ear ended 31 December 2020 APPOINTMENT Ok AUDITORS The re-appointment of BHP LLP as auditor to the Board will be proposed at the Annual General Meeting. BYORDER OFTHETRUSTEES The Right Revd Paul William5 Chairman Date.. Growing Disciples Wider Younger Deeper Page 16

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE INDEPINDFNT AUDITOR'S REPORTTOTHE MEMBERS OF SOUTHWELLAND NOThINGHAM DIOCESAN BOARD OF FINANCF. Icontinuedl Opinion We have audited the financial statements of Southwell and Nottingham Diocesan Board OF Finance Ithe'parent charitable company I and its subsidiaries (the 'group'l for the year ended 31 December 2020 which cornprise the Consolidated Statement of Financial Activities, the Consolidated Income and Expenditure Account. the Company and Consolidated Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounring policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kin8dom Accounting Standards, including Financial Reportin8 Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). ethical requirements that are relevant to OLJr audit of the financial statements in the Ul4, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is 5uffici8nt and ppropriate to provide a basis for our opinion. Conclusions relating to going concern ln auditing the financial statements, we have concluded that the trustees use OF the going concern basis of accounting in the prepararion of the financial statements is appropriate, Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the group s or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In our opinion the financial statemernts.. give a true and fair view of the state of the group's and parent charitable company's affairs asat 31 December 2020, and of the groups incoming resources and application resources, including its income and expenditure, for the year then ended., have b￿n properly prepared in accordance with United Hingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 Our responsibilities and the responsibilities of thè trustees with respect to going concern are described in the relevant sections of this report. Other informarion The other information comprises the informètion included in the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within rhe trustees, report. Our opinion on the financial Statements does not cov8r the other information and. except to the extent otherwise explicitly stated in our rèporL, we do not express any form of assurance conclusion thereon. Our responsibility to read the other information and, in doing so, consider whether the other information is materially Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUF<II and applicable law. Our re%ponsibilities under those standards are further described the Auditor's respon5ibilitiÈs for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the Growing Disciples Wider Vounger Deeper Page 17

SOUTHWELL & NorriNGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF SOUTHWELLAND NO￿INGHAm DIOCESAN BOARD OF FINANCE Icontinuedl inconsistent wlth rhe flnancial sratements or our knowledge obtained in the course of the audit or otherwise appears to be matèrially misstated. If we identify such maLerial inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, bèsed on the work we have performed. we conclude that there is a material mi£gtatem@nt of this other information. we are required to report that fact. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us.. or the pèrent charitable company s financial statements are not in a8reement with the accounting records and returns., or certain disclosures of directors, remuneration specified by law are not made., or We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the wor undertaken in the course of the audit.. we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustee5 responsibilities statement, the trusteès Iwho are also the direcrors of the parent charirable company for rhe purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they 8ive a true and fair view. and for5uch 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. the information given in the trustees, report (incorporating the strategic report and the directors, reportl for the financial year for which the financial statements are prepared is consistent with the financial statements.. and the strategic report and the directors report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and its Ènvironment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors, report. In preparing the financial statements. the trustees ère responsible For assessing the groups and parent charirable companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unle55 the Irustee5 either intend to liquidate the 8foLJP or parent charitable company or to cease operarions. or have no realistic alternative but todo so. We have nothing to report in respèct of the following matters in relation to which the CompaniesAct 2006 requires us to report to you if, in our opinion.. Growing Disciples Wider Younger Deeper Page 18

SOUTHWELL & NOThINGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF SOUTHWELLAND NorriNGHAM DIOCESAN BOARD OF FINANCE Icontinuedl Auditor's responsibilitie5 for the audit of the financial statoments We have been appointed auditor under the Companies Act 2006 and report accordance with this Act. responsibility for the compliance of laws and regulations. We also reviewed legal expenses. We addressed the risP( management override of internal controls, including the testing of journals and review of the nominal ledger. We evaluated wheLher there wa5 evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud. Our objectives are to obtain reasonèblè assurance about whether the financial statements a5 a whole are free from material misstatement. whether due to fraud or error. and to issue an auditors report that includes ouropinion. Reasonable assurance is a high level of assurance, but 15 not a 8uarantee that an audit conducted ir) accordance with ISAS IUHI will always detecc a material misstatement when it exists. Misstatements can arise from fraud or error and are considered mat8rial 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. Because of the inherent limitations of an audit, there is a risk that we will nor detect all irregularities. including those leading to a material mi5Statement in the financial statements or norn-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurrin£ due to fraud rather than error. as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. Irregularities, including fraud. arè instances non-compliance with laws and regulations. We dosi8n procedures in line with our responsibilities. outlined above. to detect material misstatements in respect of irregulariti￿, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities. including fraud is detailed below.. A further description of OLJr responsibilities is available on the Financial Reporting Council's website at.. htt www.fr Wor Audit Audit-an and- uidance/St uidance-for- auditors/Auditors-res onsibilities-for- audit/Descri n-of-auditors- on r-audit.as This descriprion forms part of our auditor's report. We gained an understanding of the legal and regulatory framework applicable to the charitable company ènd the sector in which it operates. and considered the risk of such regulations. including fraud. We designed audit procedures to respond to the risk. Use of our report This report is made solely to the charitable company s members, as a body, 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 companys members those matters we are r@qLJired to state to them in We focused on laws and regulations relevant to the charitable company which could give rise to a material misstatement the financial statements. Our testing included discus5i0ns with mana8ement, trustees. and those staff with direct Growing Disciples Wider Younger Deeper Page 19

SOUTHWELL& NOTtINGHAM DIOCESAN BOARD OF FINANCE INDEPENDENT AUDITOR'S REPOFtFTOTHE MEMBERS OFSOUTHWELLAND NOThINGHAM t)IOCESAN BOARD OF FINANCE Icontinuedl anauditor's report and Forno other purpose. To the fullest exrent permitted by law, wedo not accept or assume responsibility to anyone other than the charitable company and the charitable company's m@mber5 as body, for our audit work, for thi5 report. or for the opinions we have formed. lane Marshall (Senlor Statutory Auditor) for and on behalf OF BHPLLP 2 Rutland Park Sheffield SIO 2PD Date.. 14 June 2021 Growing Disciples Wider Younger Deeper Page 20