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2022-12-31-accounts

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2022

SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TABLE OF CONTENTS

For the year ended 31 December 2022

Page Number
Administrative Details 1
Chairman’s Foreword 3
Trustees Report 5
Trustees’ Responsibilities 6
Strategic Report:
Strategic aims 7
Activities and achievements in the year 7
Future plans 9
Financial performance 10
Principal risks and uncertainties 15
Independent Auditor’s Report 17
Consolidated Statement of Financial Activities 21
Consolidated Income and Expenditure Account 22
Company Balance Sheet 23
Consolidated Balance Sheet 25
Consolidated Cash Flow Statement 27
Notes to the Financial Statements 35

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

ADMINISTRATIVE DETAILS

For the year ended 31 December 2022

Trustees

In accordance with the Companies Act 2006, The Statement of Recommended Practice 2019 (SORP 2019) and Financial Reporting Standard 102 (FRS 102), the Trustees (for the purposes of charity law) and Directors (for the purposes of company law) during 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 COMMITTEE 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 of Southwell & Nottingham The Rt Revd The Bishop of Sherwood The Very Revd The Dean of Southwell The Venerable The Archdeacon of Newark (a) The Venerable The Archdeacon of Nottingham (a) The Chair of the House of Clergy of the Diocesan Synod (Revd S Hustwayte) (a) The Chair of the House of Laity of the Diocesan Synod (Mr M Wilson) (a) (b) The Chair of the Finance Committee (Canon M Arlington) (a)

ELECTED BY THE SOUTHWELL & NOTTINGHAM DIOCESAN SYNOD

CLERGY (5) Newark Archdeaconry (2)

Revd L Lima Revd Z Burton

LAITY (9) Newark Archdeaconry (4)

Professor P Harris Mr R Brand Mrs C Shaw Vacant

Nottingham Archdeaconry (3)

Revd Canon S Silvester Revd P Shaw Revd M Tanner (b)

Nottingham Archdeaconry (6)

Mr C Barber Miss S Waterston Mrs J Gray Mr C M Bolton Mr R Cleave (a) Mr R Gutteridge

(a) Member of the Finance Committee

(b) Member of the Board of Education

PRINCIPAL OFFICERS AND ADVISERS

Diocesan Chief Executive & Company Secretary Mr M L Cooper BA (Hons) FCA ATII Diocesan Registrar, Bishop's Legal Secretary & Legal Adviser to the Board of Finance Mrs A J Redgate LLB

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

Administrative Details (continued)

For the year ended 31 December 2022

HEADS OF DEPARTMENTS

Director of Discipleship & Ministry Director of Partnerships & Mission

Director of Education Director of Communications Director of Finance

BANKERS

Lloyds Bank, Nottingham

SOLICITORS

Rotheras, Nottingham

MINING, MINERALS, ENGINEERING & ENVIRONMENTAL CONSULTANTS

Revd Canon Dr R Kellett BTh (Hons), BSc (Hons), MA, PhD Revd D McCoulough BA (Hons) MA (resigned 31 March 2023) Mr N Frith BA MA NPQH Vacant Mrs R A J Bowes FCCA (resigned 24 February 2023)

INVESTMENT MANAGERS

CCLA Central Board of Finance of the Church of England Rathbones Investment Management Ltd Mayfair Capital Investment Management Ltd Ruffer LLP

CHARTERED SURVEYORS

Jas. Martin & Co, Lincoln Tanners, Nottingham Geo Hallam & Sons, Nottingham

INSURERS

Ecclesiastical Insurance Group

Mineral Surveying Associates

AUDITOR

BHP LLP 2 Rutland Park Sheffield S10 2PD

REGISTERED ADDRESS

Jubilee House Westgate Nottingham NG25 0JH

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHAIRMAN’S FOREWORD (continued) For the year ended 31 December 2022

‘Every good gift and every perfect gift is from above, coming down from the Father of lights, with whom there is no variation or shadow due to change.’

James 1:17

As I look back on 2022, I reflect on a series of extraordinary events, shifts and changes on both a national and global scale. We have tentatively emerged from a pandemic and begun to gauge its aftermath, witnessed an unprovoked war against Ukraine resulting in the fastest displacement of people in Europe since World War II, felt the subsequent impact on energy and food markets with rising prices and scarcity of supplies, and within our own country, witnessed the warmest year on record, unprecedented leadership changes, and a nation united in grief with the death of a beloved Queen. In the midst of such trials, it is all too tempting to focus on what we have lost, what has adversely changed or what we are lacking and in so doing, to question the trustworthiness and immutability of God. And yet as James reminds the church, God is the source of every good and perfect gift; he does not change when circumstances change, he doesn’t become less generous or loving when shadows gather. In such times as this, we are called to trust God more. And so it is that I continue to be deeply thankful as I also review the life and ministry of our diocese over the last twelve months. Inspired and guided by the Father of Lights, congregations and clergy have been compelled to draw upon those good gifts of resilient faith, renewed courage and resourceful innovation to sustain mission and core activities across 300+ churches, 73 church schools and many other places of mission.

Whilst recognising the challenge of establishing a clear picture of where parishes have grown or declined in their overall ministry for this duration, we are encouraged to see our aspirations for Growing Disciples bearing fruit through new people engaging with the life of the church, and some inspiring stories of a refreshed vision for mission. Across the rich diversity of market towns, rural, estates, urban and suburban contexts, we have seen existing church communities adapting to the emerging missional opportunities, and prayerfully engaging with new models of ministry . With the support of some of our larger resourcing churches , planting and grafting has enabled some churches to engage in a new a season of revitalisation. It has brought the blessing of new co-workers from sending churches, along with new partnerships in the local community, that has created fresh impetus for mission and growth (including St Paul’s Daybrook, Holy Trinity Lenton, St Stephen’s Sneinton, St Swithun’s Retford, All Hallows Lady Bay, St Leo’s, Basford and St Wilfrid’s, Wilford). Through Transformational Change Appointments, a number of clergy appointments have been re-shaped to enable significant change to facilitate growth; some of these are time-specific appointments that ensure we do not reduce the level of stipendiary ministry while maintaining flexibility in future deployment planning in the medium term. To date we have made 12 Transformational Change Appointments. For the first time, Local Missional Leaders (LMLs) are also being called and equipped; currently 5 lay LMLs are being commissioned to lead local mission within new initiatives and existing parishes. This is in addition to the 12 Licensed Lay Ministers (Readers) licensed in October 2022.

We continue to build on our heritage of children, families and youth ministry in the diocese as we seek to see a step change in these ministries across the diocese “ Growing Younger and More Diverse ”, with the aim of seeing many more children and young people coming to know Jesus and grow as disciples of Christ. Greatly assisted by Strategic Development Funding (SDF), amounting to £2.25m given over the last 5 years, the past twelve months have seen the establishment of 10 flagship churches for children and families’ ministries and 5 new youth hubs. Investment has also been made available for up to a further 25 churches where there are signs of significant potential for growth in youth, children and families’ ministries. This focus is on being ‘ locally led, centrally supported’, with individual churches taking the lead in the delivery of mission and ministry but with central support from the diocese, offering capacity to develop people and ministry across all of our diverse communities and churches. This focus aligns with the missional opportunity for further collaboration between parishes and local church schools, where we are already greatly encouraged by some new signs of exponential growth in certain contexts with in-school, after-school mid-week worship for children and carers led by the local church leadership (for example at St Michael’s Farnsfield and the Cranmer Group). This aligns well with the strategic intent of the Diocesan Board of Education (DBE) as it seeks to articulate and promote Christian distinctiveness across our church schools and academies.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHAIRMAN’S FOREWORD (continued)

For the year ended 31 December 2022

As an essential core element of our mission, the diocese continues to invest in and embed good Safeguarding practices into every part of the life of the diocese, and as we implement the key recommendations of the Past Cases Review (PCR) 2, undertaken across the Church of England, which has also affirmed existing good practice which is in place. Progress also continues to be made in fostering a vision for a more diverse church ; this includes the GMH (Global Majority Heritage) Advisory Group agreeing and beginning to implement a Racial Justice Action Plan, although we are not complacent that there is significant work to do to ensure that vision is turned into action. The diocese has also been blessed by the volunteer support of a Diocesan Environment Officer to help shape and promote wider engagement with our ‘ Caring for Creation’ agenda . To date, we are pleased that 93 churches have registered with A Rocha, the Christian environmental charity, as an Eco church, with 20 churches achieving a Bronze Eco award and 7 a Silver Eco award; in the summer of 2022, the Diocese of Southwell and Nottingham also received a diocesan Bronze eco award in Summer 2022. Although this is a significant achievement, we know that it’s just a start and we have much to do together over the coming years, and if we are to become carbon neutral by 2030. Aware that half of diocesan carbon footprint is produced by our church schools, the DBE is working proactively with schools to meet their zero-carbon agenda.

Foundational to all these aspirations, and recognising that we continue to live in a time of rapid change and uncertainty, we seek to be a diocese rooted in prayer and thanksgiving. As part of this, since the autumn of 2022, each month we have designated a special Diocesan Day of Worship and Prayer , with gatherings in different locations across the diocese. It has been so heartening to witness how church groups and individuals have been enriched by these opportunities to receive, to be encouraged and to be blessed by time together with God.

We are deeply thankful for all that God has been doing across our diocese over many years, and for the faithful commitment of so many to enable the ministry of their local church in each parish. We also give thanks for parishes who have been able to sustain parish giving, especially for those contexts which have been sacrificial in their giving. As with the wider Church of England, we continue to be mindful and attentive to the growing gap between Parish Share received and the cost of ministry in the diocese .

Whilst much has changed in our lives and world in the past few years, now is not the time to lose heart. In such times, we are called to be even more prayerful and courageous in making Christ known. This is why we are also reviewing our priorities and refreshing our plans with an opportunity to build on what we have been learning over the last 6 years. As part of this process of discernment, we have invited every local church to reflect on their experience and learning to date, and also share their vision and priorities for Growing Disciples. A refreshed Diocesan Vision will be shared at Pentecost 2023 so that together we can continue to align vision, strategy and resources, and respond effectively to the shifting missional landscape, as we look towards the kind of diocese God is asking us to be in 2030 and beyond.

With every blessing

The Rt Revd Paul Williams

Bishop of Southwell & Nottingham

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT

For the year ended 31 December 2022

The Trustees, who are also Directors for the purposes of company law, present their report and the audited financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

The Directors/Trustees are one and the same and in signing as Trustees they are also signing the strategic report sections in their capacity as Directors.

This combined report satisfies the legal requirements for:

LEGAL OBJECTS

The principal object of The Southwell & Nottingham Diocesan Board of Finance (“the Board”) is to promote, assist and advance the work of the Church of England in the Diocese of Southwell & Nottingham by acting as the financial executive of the Southwell and Nottingham Diocesan Synod.

The Board has the following statutory responsibilities: -

The strategic priorities of the Board are established by the Diocesan Synod in communication with Deanery Synods, Parochial Church Councils (PCCs), and the Bishop of Southwell & Nottingham (in respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the church nationally; including an annual series of consultations on specific matters relating to the priorities for the forthcoming year, including the Diocesan Budget.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2022

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 ecumenical) more effectively, both in the diocese as a whole and in its individual parishes, and that in doing so it provides a benefit to the public by:

TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of the Board for the purposes of Company Law) are responsible for preparing the Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) .

Company law requires the Trustees to prepare financial statements for each financial year 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 the charitable company for that period.

In preparing these financial statements the Trustees are required to:

Select suitable accounting policies and apply them consistently

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Board and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far aware the trustees are aware:

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

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2022

TRUSTEE RECRUITMENT, SELECTION AND INDUCTION

Trustees are members of the Bishop’s 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 needs are identified. They are also informed before seeking membership and, at all other relevant times, of the role and function of the Committee. All Trustees are required to sign the code of practice and maintain their entry in the record of declarations of interest and loyalty. Some staff hold the title of ‘Director’, but this relates to their function within the organisation and has no legal meaning within the terminology associated with the Companies Act.

VOLUNTEERS

The Board is dependent on the huge number of people involved in church activities both locally and at diocesan level. We believe that the number of active volunteers (or volunteer hours) given to the mission and ministry of the church is a key indicator of the health of the church. The service provided to a community through church volunteering also has a significant impact on people’s relationship to the church particularly in times of crisis. Within this context, the Board greatly values the considerable time given by all the committee members across the diocese in pursuit of the mission of the Board.

MISSION STATEMENT

We have a strategic vision of Growing Disciples, reaching wider, connecting younger and nurturing deeper roots of faith.

A Task and Finish Group has been formed to review progress towards the strategic vision and refresh it for the period 2023-30. The Board aims to launch the refreshed vision at Pentecost 2023.

Strategic Report:

STRATEGIC AIMS

The Board resources mission and ministry through 250 parishes and other networks.

The annual budget has been set against this background, designed to provide adequate resources to fund the present, as well as to shape the future, in a way that is fit for the missional task. We continue to prioritise the appropriate provision of stipendiary parish clergy and licensed lay workers across the diocese.

The Board’s strategy for achieving its objectives is to adopt a methodology of limiting central sources of expenditure in favour of both releasing funds for mission and minimising the increase in Parish Share. The Board continues to maintain the sound financial structure needed to enable it to continue supporting 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 clergy and lay people in parishes across the diocese.

OBJECTIVES FOR YEAR

The objective of the Board is to provide financial resources for the achievement of the priorities of the Bishop and Diocesan Synod.

ACTIVITIES AND ACHIEVEMENTS IN THE YEAR

2022 started with the implementation of the Strategic Development Funding bid 4 (SDF4) entitled Growing Younger and More Diverse, following approval in Autumn 2021. This programme seeks to create a step change and reverse the downward trend in church attendance, especially amongst younger generations. It includes establishing 5 youth hubs, each of which would receive a 5-year funded Youth Team Leader post and 10

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2022

flagship churches (focused on children & families ministries), 5 new, each of which would receive a 5-year funded Children & Families Team Leader and 5 existing, each of which would receive £50k to support staffing/associated project costs. In addition, up to 25 other churches, where there is significant potential for growth among children & families and youth, would receive a smaller grant to support staffing/associated project costs. By the end of 2022 all 5 Youth Team Leader posts and 4/5 of the Children & Families Team Leader posts had been appointed in addition to 3/5 of the existing flagship churches have appointed workers. A further 4 children & families/youth workers have been recruited to support some of the other 25 churches. In addition to this local investment the Diocese has employed a Children & Youth Work Trainer & Enabler to journey alongside churches are they seek to create this step change with children & families and youth. This journeying alongside includes a pilot of ‘INSPIRE’ a programme of support to SDF4 churches for employed worker and team of volunteers. Over 3 weekends throughout the year with inspirational speakers and practical support INSPIRE is completed by Learning Communities for the Lead Children & Families/Youth worker. Although still in the early stages of programme implementation there are some encouraging signs of growth amongst children & families and youth with year 1 outcomes on track.

2022 also saw the start of the Diocesan Vision and Strategy Refresh, a discernment process to review and refresh the current 2016-2023 vision and provide clarity and focus for 2023-30. 2022 concluded with a Diocesan wide engagement process, the Parish Refresh, which saw over 100 parishes/benefices submit responses highlighting progress and learning and opportunity and needs to help inform the discernment process.

Delivery of the other objectives under the previous SDF bids also continues including the expansion of the Younger Leadership College, part of SDF1, with the Intern scheme now including a second year. The 2022 intake saw a total of 21 interns, including 4 second year interns and 7 Associates. This was across 11 churches including 5 churches new to the programme. SDF2 saw continued progress at St Mary Magdalene’s with St Leonard’s Newark including Alpha, recruitment of a Worship & Youth Pastor and intern and a change request which led to an additional £100k SDF investment for re-ordering. SDF3 saw continued progress at St John with St Mary’s Mansfield, Woven and successful recruitment of a leader at St Swithun’s Retford in addition to an ops role and project re-set which led to additional SDF funding of £50,000 being awarded.

The focus on Caring for Creation continues, and we are grateful to new our Diocesan Environment Officer, Robert Cleave, for taking on this role as a volunteer. Robert is working with parishes and church schools to develop a strategy for our church buildings across the Diocese as we work towards the national Church of England target of being net zero carbon by 2030. The diocese achieved a Bronze Eco Diocese Award, and by the end of 2022 91 churches were registered as eco churches.

The property team supported 7 members of the clergy with their retirement plans and assisted with moving 13 clergy families in housing in the Diocese. During 2022, the Board undertook and EPC review of all parsonages in its portfolio. This had two benefits, to assist the Board in its environmental objectives, and to support the Board in increasing the energy efficiency of clergy housing in the Diocese.

The Diocesan Education Team have continued to provide their blend of professional, pastoral, and spiritual support to church school leaders, and have also implemented the new DBE Measure, developing a Scheme and Terms of Reference. During the year, they have run a wide range of training and conferences and have developed an active partnership with our five church Multi Academy Trusts (MATs).

The Board, through the Partnership and Mission team, have continued to support and equip local churches in their social justice and outreach work. We support Transforming Notts Together (TNT) with both a financial grant, and provision of Diocesan staff to support their work. TNT now supports 49 Places of Welcome, 14 Grief Cafes, 244 members of Christian Action Networks from 150 churches and Christian organisations across the

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2022

city and county. The Board also supports Refugee Roots who has worked with and supported over 300 refugees and asylum seekers in the past year, offering befriending, art classes, signposting, women’s support, and English conversation classes. The diocesan Supporting Ukrainian Refugees initiative has enabled a number of Ukrainians to be matched with and supported by hosts from a several of our churches. Our support of Nottingham Citizens has also continued. The Board has also supported the appointment of 11 new chaplains appointed including to the University of Nottingham, the Defence Rehabilitation Centre, various prisons, hospitals, and air cadets.

The Discipleship and Ministry team has continued to be active in training and developing lay and ordained ministers across the Diocese using both online and in-person provision where available and will continue this hybrid approach going forward. We have continued to build on the material hosted on our digital learning Hub: we recently added a Diversity & Belonging module (the first of its type across the Church of England) and 113 people have enrolled on the self-directed course. Despite the pandemic restrictions, we have been able to recruit to lay ministries and increase the number of interns on our year’s scheme. We have had 40 people accessing our exploring ordained ministry online course which we hope will boost vocations to ordained ministry in the coming years. We have run wider training to clergy on Generosity and the theme for our Diocesan Conference for those involved in church leadership was Living Hope: Facing Reality, Embracing the Future with our speaker, Bishop Graham Tomlin to help equip us as we came out of the pandemic.

FUTURE PLANS

In 2023 the Diocesan Vision & Strategy Refresh will be launched.

The focus on generous giving will continue, with the rollout of Free Digital Giving devices, supported by the National Church, together with the recruitment of as Digital Giving Advisor to assist all parishes in ensuring their online giving options are all fit for purpose.

The focus on our response to Caring for Creation will continue, aiming to cut our carbon footprint and promote eco church and to encourage further our understanding of caring for creation as central to whole life discipleship. The Diocesan Advisory Committee (DAC) will develop a strategy for our church buildings across the Diocese and aim to improve our church building carbon footprint and increase awareness and use of environmental products and services. We aspire to achieve Eco- Diocese Silver Award but this is dependent upon the number of individual churches registered under this programme.

In the coming year, the work of the Partnership and Mission team will be fully integrated into the Discipleship and Ministry Team. We will be reviewing our longstanding partnerships with TNT, Citizens and Refugee Roots as our current partnership agreements come to an end. We will facilitate ongoing strategic engagement with local authorities, charities and churches responding to the needs of Refugees, Asylum Seekers, victims of modern slavery and hate crime. There will also be further developments in chaplaincy provision, and we aim to fill our chaplaincy vacancies in healthcare, a prison and Emergency services. We will also explore new models with community and parish-based chaplaincies with local sports clubs, medical centres, and FE colleges.

The Education team will develop greater alignment between churches and church schools. The Board will also try and address the recruitment crisis in foundation church school governance, along with a need to develop exofficio governance, and strengthen our recognition of young people as leaders of today not just tomorrow. The team also aim to develop diversity in governance and church school leadership.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

KEY PERFORMANCE INDICATORS

The Board regards its key performance indicators as follows:

2022 2021
Percentage
of
parish
share received		 84.4% 90.7%
Average rate of return on
investments		 2.59% 2.51%

The apparent reduction in Parish Share performance was due to the Share requested from deaneries in 2021 being reduced by £382,000 through the Parish Share Support Fund. This Fund was established to enable deaneries to provide relief for the adverse impact of Covid 19 on rental income from parish facilities and trading operations. The financial year has been one of mixed fortunes for the investment market, with substantial unrecognised losses on equity investments in the last quarter of 2022. The Board also took the decision to dispose of its investment in Wind FX Limited, which generated a profit after the loan repayment of £969,000.

FINANCIAL PERFORMANCE

The main income to the Board is from parishes giving Parish Share, which has increased this year. The Trustees are immensely grateful to all the parishes who continue to contribute to parish share, and supported Ministry in the Diocese. We cannot achieve this without their support.

INCOME % of
Total		 2022
£000		 2021
£000
Parish Share 47.1 5,534 5,384
Archbishops’
Council		 19.7 2,315 2,281
Allchurches
Trust		 1.2 147 143
Fees 2.69 317 301
Investment
income		 9.24 1,087 1,054

The Trustees acknowledge with thanks the annual distribution from Allchurches Trust. The other grants received from Archbishops’ Council during 2022 are £661,000 Strategic Development Fund monies, which is matched funded by the Board and £1,262,948 Lowest Income Communities funding to support mission in our poorest parishes. We also received Strategic Ministry funding for additional curates of £187,065.

The Board managed a net gain before investment gains and losses of £1,135,000 (2021: gain £232,000), this was largely due to the continued sale of surplus clergy properties to support the Board’s position.

The capital values of investments have had a worse year than last, and the year-end position of £45,459,000 is only an overall decrease of £20,000 despite the Board investing another £1.5m into the financial investment portfolio.

The capital values of agricultural land has remained the same. The unrealised gain on investments at the yearend was £890,427 The Board received £951,525 during the year relating to the sale of glebe assets.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2022

REVIEW OF THE BALANCE SHEET

The Trustees consider that the balance sheet, together with details in note 22, show that the restricted 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 assets at the balance sheet date totalled £86,444,000 (2021: £84,238,000) 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 Board, whose value amounted to £32.5million (2021: £34.1 million). 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 out in note 21 the Board holds and administers a large number of restricted and endowment funds. As at 31 December 2022 restricted funds totalled £8.4m (2021: £9.8m) and endowment funds totalled £62.9m (2021: £60.5m). Net outgoing resources in the education restricted fund, before investment gains, amounted to £167,000 (2021:£62,000) and resources were mainly used to finance the salaries of those Education Department staff with responsibility for church schools and academies.

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 reserves 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 reserve together with the intended use of the reserve is set out in note 23. At 31 December 2022 total designated reserves were £9.2m (2021: £9.9m). The balance of the £1.4m set aside in a designated fund to finance the funding shortfall on the closed lay staff defined benefit pension scheme has been released in the year due to the actuarial valuation.

Free reserves

The Board of Finance has considerable responsibilities including the remuneration of about 120 stipendiary clergy, the employment of over 60 full or part time staff and the upkeep of nearly 190 houses. Most of the Board’s income is voluntary with half coming from Parish Share and the balance made up of grant income from Archbishops’ Council and income investments and other sources. In light of this and the flow of income, the Trustees have determined that it is prudent to hold free reserves at least equivalent to general fund expenditure over two months i.e. £1.5m.

At 31 December 2022, the Board of Finance’s free reserves were £2.0 million (2021: £2.9 million). During the year, the Board has changed the basis of its calculation of its free reserves to align more closely with the SORP. Using the previous basis of calculation, free reserves at 31 December 2021 were previously disclosed as £4.3 million. The trustees consider that with the continued uncertainty around the economic situation together with the changes in the way that Diocese are resourced from Church Commissioners, and the continuing pressure on parish share, the increased holding of free reserves is prudent.

Subsidiaries

During 2015, the Board set up two subsidiary companies. SNDBF Solar Limited is a wholly owned subsidiary that manages the £226,000 invested in the installation of solar panels on 50 benefice houses. Wind FX Limited is 60% owned by the Board and operates a 500Kw wind turbine. The investments into these companies, by way of loan capital, totalled £1,090,000. The Board sold the entire share capital of Wind FX on 22 December 2022, and recognised a profit on sale of £969,000.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

Investment policy and performance

The Board is empowered by its Memorandum of Association to invest monies not immediately required for its purposes. In addition, the Board acts as trustee 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 related purposes, and note 16 summarises the movements in investments during the year.

The implementation strategy for the diocesan assets is managed by a subgroup of Finance committee on behalf of Bishop’s Council. The strategy is to grow the value of the diocesan assets and their annual income with a due regard to the level of risk associated with the ownership of particular assets. The Board appoints managers to advise 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 CPI +4%.

The Diocese has historically been an owner of agricultural land, currently 3,563 acres including 3 farms. The growth in value of agricultural land since 2006, has resulted in nearly 50% of the total value of assets being in land. The current policy is to reduce the amount of land over time when the 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 return 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.

Funds which may be needed for working capital in the short-term are held as deposits with the Central Board of Finance of the Church of England and the Board’s bankers, Lloyds Bank plc.

FUNDS HELD ON BEHALF OF OTHERS

As Custodian Trustee: The Board is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. These assets are not aggregated in the financial statements as the Board does not control them, and they are segregated from the Board’s own assets by means of a separate bank account and accounting system. Further details of financial trust assets (see note 31) are available from the Board on request.

On behalf of Schools: The Board of Education (as incorporated within the Board) receives contributions from governors of church schools within the Diocese in connection with major repair and capital projects to church schools and also Government grants in connection with the same. The Board of Education administers these monies as managing agent and makes appropriate payments to contractors for work carried out.

The monies do not belong to the Board of Education and as such the receipts and payments are not treated as income and expenditure in the Statement 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 2022 is £11,320 (2021: £51,203). The income and expenditure relating to school projects not reflected in the Statement of Financial Activities amounted to £235,567 in 2022 and £444,635 in 2021.

GRANT MAKING POLICY

Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry. Grants are paid to other connected charities and to other charitable projects which appear to the Board of Finance to support the furtherance of the Board of Finance’s objects.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

Mission Development Funding from Archbishops’ Council has now ceased, so the designated fund will be used to support the existing projects.

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 Board, 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.

Each Diocese is a separate entity led by the Bishop and is governed by the Canons of the 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 Suffragan Bishop of Sherwood.

At national level the Diocese relates to the Archbishops’ Council, the Church Commissioners and the Church of England Pensions Board. Further information can be found at www.church-of-england.org. The financial transactions of these bodies do not form part of these financial statements.

Each diocese is divided into benefices 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 Diocese. Benefices are grouped together in nine Deaneries which are units of mission, conduit of communication and whose members elect the members of General and Diocesan Synod.

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 be obtained from the Cathedral Administrator, Southwell Minster, Church Street, Southwell, Nottinghamshire, NG25 0HD.

The Board of Finance and Diocesan Synod: Within the Diocese there are two major bodies - the Diocesan Synod and the Board of Finance: the membership of both is coterminous .

Board of Finance: The company, Southwell & Nottingham Diocesan Board of Finance, was formed to manage the financial affairs and hold the assets of the Diocese. It was incorporated on 5th June 1891 as a charitable trust company limited by membership guarantee (No. 34165) and its governing documents are the Memorandum and Articles of Association. The Board of Finance is registered with the Charity Commission (No. 249359).

The company, originally called the Southwell Diocesan Finance Association, changed its name to the Southwell Diocesan Board of Finance on 18 January 1932. On 28 February 2006, the company changed its name to the Southwell & Nottingham Diocesan Board of Finance.

As a member of the Board, each member of Synod has a personal liability limited to £1 under their guarantee as company members in the event of its being wound up.

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 Archdeacons, clergy members elected by the houses of clergy in Deanery Synods, lay persons elected by the houses of laity in Deanery Synods, plus up to 20 co-options

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

The Diocesan Synod usually meets twice a year.

Its role is to:

Many of Diocesan Synod’s responsibilities have been delegated to Bishop’s Council.

The Bishop’s Council (and Standing Committee of the Diocesan Synod): The members of the Bishop’s Council are the Board of Trustees and Directors 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 (3 from the Archdeaconry of Nottingham and 2 from the Archdeaconry of Newark) and 10 lay persons elected by the members of the House of Laity representing deaneries (6 from the Archdeaconry of Nottingham and 4 from the Archdeaconry of Newark) and up to 4 co-opted members of Diocesan Synod. Under the constitution of the Diocesan Synod, Bishop’s Council has the following functions:

Decision Making Structure: Corporate priorities and the overall financial strategy for the Diocese, in its primary object to promote, assist and advance the work of the Church of England within the Diocese of Southwell and Nottingham, are set by the Diocesan Synod and the Board.

The company meets once a year in general meeting to receive and approve the annual report and financial statements and to appoint the auditors. The Diocesan Synod each year receives and agrees the annual budget, prepared and approved by the Board. The Trustees, meeting within the context of the Bishop’s Council & Standing Committee, hold up to eight meetings during the year to formulate and coordinate policies on mission, ministry and finance. The Trustees rely upon the Diocesan Chief Executive and their team of six departmental directors for the delivery of the day to day activities of the company. The Diocesan Chief Executive is given specific and general delegated authority to deliver the business of the Board in accordance with the policies framed by the Trustees.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

Council are also the members of 2 statutory committees:

benefice, team vicarages and houses owned by the Board of Finance.

Other statutory committees include:

In addition 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 works closely with the Diocesan Chief Executive and Director of Finance. The Finance Committee has decided that in order to give considered advice to the Bishop’s Council and to understand the detail of diocesan finance, to set up the Audit Committee which advises the Finance Committee and thereby Bishop’s Council, in the discharge of the Trustees’ responsibilities for accounting policy, internal control, financial reporting and risk management.

Remuneration of Key Personnel: 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.

GOING CONCERN

The financial statements have been prepared on a going concern basis as the trustees believe that, despite the uncertainty of the current economic climate, the Board has sufficient monetary reserves to meet all their obligations as they fall due. The trustees consider that given the level of investments and reserves held the going concern basis is appropriate.

PRINCIPAL RISKS

The Trustees are responsible for the identification, mitigation and or management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is subject to review by the Trustees on an annual basis with the responsibility for delivery of the mitigation strategies identified by it, being delegated to the Chief Executive.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2022

The risk register identifies three areas where the risk of either failure to act or the impact of the events is considered ‘high’. These areas and the associated mitigation strategies are detailed in the table below:

**Risk Type ** Risk Mitigating activity
Reputational Safeguarding
&
Inclusion
of
children and vulnerable adults:
current safeguarding incident by an
individual associated with the
Diocese or any church in our
Diocese and adverse publicity
relating to safeguarding failures in
the past or present.		 •
Safeguarding advice is provided by a dedicated
Safeguarding team
•
Policies are aligned with those of the national
church
•
Training is compulsory for all relevant staff and
office holders
Financial Parish
Share
collection
is
considerably less than 100%.		 •
Collection statistics are produced and circulated
on a monthly basis to Deanery & Diocesan
personnel
•
Deanery finance personnel are expressly tasked
with identifying, reporting on and supporting
those parishes where there is considered to be
a significant risk of under-collection
Reputational
and Financial		 IT: System failure. •
The disaster recovery plan is reviewed on an
annual basis
•
The majority of systems are held in the cloud,
with backups held remotely and in house.

DISCLOSURE OF INFORMATION TO THE AUDITOR

We, the Directors 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:

In approving the Trustees’ Report, we also approve the Directors and Strategic Report included therein, in our capacity as company directors.

APPOINTMENT OF AUDITORS

The re-appointment of BHP LLP as auditor to the Board will be proposed at the Annual General Meeting.

BY ORDER OF THE TRUSTEES

The Right Revd Paul Williams Chairman Date:

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE (Continued)

Opinion

We have audited the financial statements of Southwell and Nottingham Diocesan Board of Finance (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise 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 accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these

requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’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.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE (Continued)

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE (Continued)

Responsibilities of trustees (continued)

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the entity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE (Continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at:https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Senior Statutory Auditor) for and on behalf of BHP LLP, Statutory Auditor 2 Rutland Park Sheffield S10 2PD Date:

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2022

Total Total
Unrestricted Restricted Endowment funds funds
Funds Funds Funds 2022 2021
As restated
Note £’000 £’000 £’000 £’000 £’000
Income and endowments from
Donations 2
Deanery share 5,534 - - 5,534 5,384
Archbishops’ Council 1,654 661 - 2,315 2,281
Other donations 153 - - 153 146
Charitable activities 3 776 36 - 812 723
Other activities 4 554 - - 554 491
Investments 5 777 310 - 1,087 1,054
Other 6 731 - 572 1,303 732
-------------------- ---------------- --------------- ------------------ -------------------
10,179 1,007 572 11,758 10,811
-------------------- ---------------- --------------- ------------------ -------------------
Expenditure on
Raising funds 7 401 54 - 455 409
Charitable activities 8 8,927 964 - 9,891 9,796
Clergy pension scheme movement 27 - - (93) (93) (7)
Church schools & Diocesan
projects 9 - 139 - 139 164
Other 10 231 - - 231 217
-------------------- ---------------- --------------- ------------------ -------------------
9,559 1,157 (93) 10,623 10,579
-------------------- ---------------- --------------- ------------------ -------------------
Net income before investment gains 620 (150) 665 1,135 232
Other recognised gains/(losses)
Gains/(losses) on investments (754) (1,106) 608 (1,252) 2,387
Gains/(losses) on disposal of
subsidiary 969 - - 969 -
Gains/(losses) from changes in
financial assumptions on defined
benefit pension scheme 1,357 - - 1,357 499
-------------------- ---------------- --------------- ------------------ -------------------
2,192 (1,256) 1,273 2,209 3,118
Transfers between funds 14 (1,091) - 1,091 - -
-------------------- ---------------- --------------- ------------------ -------------------
Net income 1,101 (1,256) 2,364 2,209 3,118
Non-controlling interest (3) - - (3) 9
-------------------- ---------------- ----------------- ------------------ -------------------
Net movement in funds 1,098 (1,256) 2,364 2,206 3,127
--------------------- ------------------ ------------------ ------------------ -----------------------
Total funds brought forward (as 14,002 9,697 60,539 84,238 81,111
restated)
-------------------- ------------------ ------------------ ------------------ -----------------------
Total funds carried forward (as 21 15,100 8,441 62,903 86,444 84,238
restated)
========= ========= ========= ========== ==========

On 22 December 2022 the group disposed of the subsidiary Wind FX Limited, income of £264,000 and expenditure of £257,000 was attributable to this disposal, all other activities are continuing.

The notes on pages 34 to 64 form part of the financial statements.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2022

Total Total
2022 2021
£’000 £’000
Total income 11,186 10,811
Total expenditure (10,716) (10,576)
------------------- -------------------
Operating surplus for the year 470 225
Net (loss)/gains on investments (891) 1,366
------------------- -------------------
Net (expenses)/income for the year (421) 1,591
Non-controlling interest (3) 9
Other comprehensive income:
Net assets transferred from/(to) endowments (1,091) (219)
(Losses)/Gains from changes in financial assumptions on defined benefit
pension scheme 1,357 499
------------------- -------------------
Total comprehensive income (158) 1,880
========= =========

On 22 December 2022 the group disposed of the subsidiary Wind FX Limited, income of £264,000 and expenditure of £257,000 was attributable to this disposal, all other activities are continuing.

The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

BALANCE SHEET - COMPANY ONLY At 31 December 2022

Company Number – 00034165

ompany Number – 00034165
2022 2021
as restated
Note £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 15 36,311 38,047
Investments 16 45,459 45,479
--------------------- ---------------------
81,770 83,526
CURRENT ASSETS
Debtors 18 2,763 2,070
Cash at bank and in hand 4,188 1,759
-------------------- --------------------
6,951 3,829
CREDITORS: amounts falling
due within one year 19 (2,228) (1,565)
-------------------- --------------------
NET CURRENT ASSETS 4,723 2,264
------------------- -------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 86,493 85,790
CREDITORS: amounts falling due
after more than one year
Pension scheme liabilities 27 - (1,387)
Other creditors 20 (108) (143)
--------------------- ---------------------
(108) (1,530)
--------------------- ---------------------
NET ASSETS 86,385 84,260
========= =========
FUNDS
Endowment funds 62,844 60,760
Deficit on clergy pension scheme - (221)
-------------------- -------------------
62,844 60,539
Restricted income funds 8,441 9,697
Unrestricted income funds:
General fund 5,874 5,418
Designated funds 9,226 9,992
Defined benefit pension scheme liability - (1,386)
-------------------- --------------------
15,100 14,024
--------------------- --------------------
TOTAL FUNDS 21 86,385 84,260
========= =========

The notes on pages 34 to 64 form part of the financial statements

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

BALANCE SHEET- COMPANY ONLY (Continued) At 31 December 2022

The Company Balance Sheet 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:

The Bishop of Southwell & Nottingham Director

Canon M Arlington Director

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED BALANCE SHEET At 31 December 2022

Company Number – 00034165

Note
FIXED ASSETS
Tangible assets
15
Investments
16
CURRENT ASSETS
Debtors
18
Cash at bank and in hand
CREDITORS: amounts falling
due within one year
19
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: amounts falling due
after more than one year
Pension scheme liabilities
27
Other creditors
20
NET ASSETS
FUNDS
Endowment funds
Deficit on clergy pension scheme
Restricted income funds
Unrestricted income funds:
General fund
Designated funds
Defined benefit pension scheme liability
CHARITABLE GROUP FUNDS
21
Minority interests
NET ASSETS		 2022
£’000
£’000
36,458
45,459
---------------------
81,917
2,551
4,188
--------------------
6,739
(2,104)
--------------------
4,635
-------------------
86,552
-
(108)
--------------------
(108)
---------------------
86,444
=========
62,903
-
---------------------
62,903
8,441
5,874
9,226
-
--------------------
15,100
--------------------
86,444
-
---------------------
86,444
=========		 2021
As restated
£’000
£’000
39,330
45,479
---------------------
84,809
1,147
1,898
--------------------
3,045
(1,555)
--------------------
1,490
-------------------
86,299
(1,387)
(719)
-------------------
(2,106)
---------------------
84,193
=========
60,760
(221)
---------------------
60,539
9,697
5,396
9,992
(1,386)
---------------------
14,002
--------------------
84,238
(45)
---------------------
84,193
=========

The notes on pages 34 to 64 form part of the financial statements .

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED BALANCE SHEET (continued) At 31 December 2022

__________________

The Consolidated Balance Sheet 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:

The Bishop of Southwell & Nottingham Director

Canon M Arlington Director

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2022

Cashflow 2022 2021 2021
note as restated
£000 £000 £000 £000
Net cash outflow from operating activities 1 (134) (1,630)
Cash flows from investing activities
Dividends, interest and rent from investments 1,087 1,054
Proceeds from the sale of:
Tangible fixed assets 2,974 1,108
Investment assets 8,753 3,967
Purchase of:
Tangible fixed assets (271) (488)
Fixed asset investments (9,984) (4,043)
Acquisitions and disposals:
Proceeds on disposal of subsidiary 2 120 -
Cash transferred on disposal of subsidiary 2 (246) -
-------------------- --------------------
Net cash provided by investing activities 2,433 1,598
Cash flows from financing activities
Interest paid (9) (9)
-------------------- --------------------
Net cash provided by financing activities (9) (9)
Change in cash and cash equivalents in the ------------------- -------------------
reporting period 2,290 (41)
Cash and cash equivalents at 1 January 1,898 1,939
------------------- -------------------
Cash and cash equivalents at 31 December 4,188 1,898
========== =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2022

2022 2021
as restated
£’000 £’000
1. Reconciliation of net movements in funds to
net cash flow from operating activities:
Net income/expenditure 2,209 3,118
Adjustments for:
Depreciation charges 107 100
Net profit on disposal of assets (1,006) (313)
Dividends, interest and rent from investments (1,087) (1,054)
Loss/(gain) on investments 1,252 (2,387)
Gain on disposal of subsidiary (969) -
FRS 102 pension scheme adjustment (1,357) (499)
Defined benefit pension scheme finance cost 24 23
Defined benefit pension scheme cost less contributions payable (109) (109)
Clergy pension scheme adjustment (221) (226)
Interest paid 9 9
Decrease/(increase) in debtors 200 (157)
Increase/(decrease) in creditors 814 (135)
------------------ ------------------
Net cash provided used in operating activities (134) (1,630)
========== =========
2. Sale of subsidiary undertaking
Net assets disposed £’000
Tangible fixed assets 1,068
Debtors 102
Cash at bank and in hand 246
Creditors (1,441)
Deferred taxation (81)
------------------
(106)
Attributable to minority interests 42
Gain on disposal 969
Repayment of shareholder loan 865
------------------
1,770
========
Satisfied by
Deferred consideration 1,650
Cash 120
------------------
1,770
========

The movement in cash and cash equivalents is the same as the movement in net debt therefore no separate movement in net debt table has been included in these financial statements.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1. 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 have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued in October 2019 and the Companies Act 2006 and Generally Accepted Accounting Practice. The financial statements consolidate the results of the Company and its two subsidiaries, Wind FX Limited and SNDBF Solar Limited on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Board has not been presented because the Board has taken advantage of the exemption afforded by section 408 of 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 £’000.

The Board constitutes a public benefit entity as defined by FRS 102. The principle accounting policies and estimation techniques are as follows:

a) Income

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

Parish share, and parochial fees are included on a receipts basis except for contributions received shortly after the period end that are explicitly relating to the period under review.

The Stipends Fund Capital account is governed by the Diocesan Stipends’ Fund Measure 1953, as amended, and the use of 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 unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting.

b) Expenditure

Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category. In respect of housing maintenance, the policy is only to provide for orders started before the year end. The cost of office premises and other service costs have been apportioned to departments to reflect the facilities used, the basis of apportionment being floor space or headcount.

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the Board, such grants being recognised as expenditure when the conditions are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment but not accrued as expenditure.

accrued as expenditure.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1. ACCOUNTING POLICIES (continued)

Support costs consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated on an approximate staff time basis.

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 Pensions Scheme (see note 27). The pension costs charged as resources expended represent the Board’s contributions payable in respect of the accounting period, in accordance with FRS102. Lay staff who are members of the stakeholder 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 schemes to which Board participates is accrued at current value in creditors distinguished between contributions falling due within one year and after more than one year. The Board also operates a defined benefit scheme for the Board’s employees whose employment began prior to 1 April 1993. The contribution rates for this scheme are set by the actuary using the actuarial valuation every three years.

c) Tangible fixed assets and depreciation

Freehold properties

Depreciation is not provided on buildings as any provision (annual or cumulative) would not be material due to the very long expected remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value. The Board has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from obsolescence. The primary purpose of residential property is to provide accommodation for ministers in the Diocese. The freehold properties are held at cost or deemed cost by reference to the midpoint of the applicable council tax band as determined in 1996.

Properties subject to equity (value 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 spouses to enable them to purchase property on a shared equity basis. In the event of a sale of any of the houses purchased with valuelinked loans, the whole, or a proportionate part, of the net sale proceeds would go to the Church Commissioners. Total value-linked loans advanced at 31 December 2022 amounted to £99,000 (2021£134,000).

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

1. ACCOUNTING POLICIES (continued)

Parsonage houses

The Board has followed the requirements of FRS102, in its accounting treatment for benefice houses (parsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The Board is formally responsible for the maintenance and repair of such properties and has some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and to carry them at their historic or deemed cost.

Land and buildings purchased during the year totalled £0.27m (2021- £0.48m). The Board’s policy continues to be to replace unsuitable properties; to accommodate the changing geographical deployment of clergy within the Diocese; and to realise development potential in some properties, thereby using our resources more effectively for the ministry of the Church.

No value linked loan houses were sold in the current or preceding year.

d) Other tangible fixed assets

All capital expenditure over £2,000 is capitalised and depreciated as follows. Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asset’s acquisition) of other fixed assets over their currently expected useful economic lives at the following initial rates:

Motor vehicles 25% Straight line
Garden equipment 20% Straight line
Computer hardware and 33.3% Straight line
software
Furniture & fittings 10% Straight line
Other office equipment 20% Straight line
Wind turbine 4% Straight line
Solar panels 5% Straight line

e) other accounting policies

i) Fixed asset investments 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 valued by Mr R Davis of Geo Hallam and Sons. For commercial property a desk top valuation is provided by the Diocesan 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. The financial investments are managed in accordance with the policy statements (including the statement on pooled funds which will be appropriate for funds managed on a multi asset basis) and restricted stock lists provided by the Ethical Investment Advisory Group of the Church of England. Active ownership and engagement via the Boards investment managers can drive positive change in corporate behaviour and the Board believes that this is part of being a responsible investor. The Board will take account of environmental, social and governance issues for both ethical and financial reasons.

ii) Leases . Operating lease rentals are charged to the Statement of Financial Activities when they are paid. The lease payments are charged straight line over the period of the lease.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

f) Fund balances

Fund Balances are split between unrestricted (general and designated), restricted and endowment funds. Unrestricted funds are the Board’s corporate funds and are freely available for any purpose within the charitable company’s objects, at the discretion of the Board. There are two types of unrestricted funds:

General funds which the Board intends to use for the general purposes of the Board. Designated 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 fund has also been created for deficit funding in respect of the closed defined benefit pension scheme.

Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal 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 Houses and Schools), there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowment.

g) Going concern

For the year ended 31 December 2022 the charitable company made an operating surplus of £1,135,000 and after taking account of gains and losses made an overall surplus of £2.2m. Free reserves at 31 December 2022 are £2.0m. The Board have considered the ongoing impact of COVID-19 on the charitable company’s income and operating cost base. They recognise that we are still in a period of uncertainty whilst the world settles into new rhythms of working.

The Board have prepared forecasts of income and expenditure for the period to 31 December 2024 that show deficit budgets. Due to the level of free reserves and cash resources held they are confident that they have in place plans to deal with the deficit budgets and any further financial losses that may arise.

The Board therefore continue to adopt the going concern basis of preparation for these financial statements.

h) Subsidiaries

The Board’s trading subsidiary is consolidated using the equity method. SNDBF Solar Limited has a 31 December year end.

Wind FX was sold during the year.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

i) Debtors & Creditors

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

j) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

k) Critical accounting estimates and assumptions

The Board makes estimates and assumptions concerning 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 present values of Church of England Funded Pensions Scheme and the Southwell and Nottingham Diocesan Board of Finance Staff Retirement Benefit Scheme both depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost(income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 27, will impact the carrying value of the pension liability .

An area of key estimation uncertainty, although not a significant risk due to annual professional valuations being undertaken, is the valuation of investment land and properties. The valuations are subject to judgements of an expert including, but not limited to, the state of repair of the properties, local knowledge, future income yields and market characteristics.

l) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

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 benefit liability is 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 is measured on an actuarial basis using the projected unit method.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

2. DONATIONS

Deanery share

The majority of donations are collected from the parishes of the diocese through the parish share system.

Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Newark Archdeaconry 2,828 - - - 2,828 2,530
Nottingham
Archdeaconry 3,723 - - - 3,723 3,404
Voluntary contribution 76 - - - 76 58
Shortfall (1,101) - - - (1,101) (615)
------------------ ----------------- ------------------ ------------------- ------------------- -------------------
5,526 - - - 5,526 5,377
Receipts for previous
years 8 - - - 8 7
------------------- ----------------- ------------------ ------------------- ------------------- -------------------
Total Income 5,534 - - - 5,534 5,384
========= ======== ========= ========= ========= =========

Current year deanery share receipts represent 84.4% of the total apportioned (2021 – 90.7%). It should be noted that the request was reduced by £382,000 in 2022, as a way of supporting parishes after the Covid 19 Lockdowns in 2021. The deanery share calculation was reviewed during 2017 and transition provisions applied to the Deaneries which have a large disparity with the way deanery share was previously calculated.

Archbishops’ Council

Archbishops’ Council
Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Selective allocation 1,263 - - - 1,263 1,260
Pooling of ordinands
candidates’ costs 204 - - - 204 64
Sustainability Funding - - - - - 300
Strategic Ministry
Funding 187 - - - 187 136
Strategic - - 661 - 661 521
Development Funding
------------------- ----------------- ------------------ ------------------- ------------------- ------------------
1,654 - 661 - 2,315 2,281
========= ======== ========= ========= ========== =========
Other donations
Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Allchurches Trust
Grant 147 - - - 147 143
Other Grants 6 - - - 6 3
------------------- ----------------- ------------------ ------------------- ------------------ ------------------
153 - - - 153 146
========= ======== ========= ========= ========== =========

Other donations

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

3. CHARITABLE Total Total
ACTIVITIES Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Statutory fees 317 - - - 317 301
Contributions to sector
and other chaplaincy
posts 88 - - - 88 74
Contributions to costs
of lay staff posts 126 - - - 126 103
Church
Commissioners’ 39 - - - 39 39
Loan interest
receivable 8 - - - 8 9
Other contributions and
income 198 - 36 - 234 197
------------------- ------------------- ------------------ ------------------- ------------------ -----------------
776 - 36 - 812 723
========= ========= ========= ========= ========= =======

4. OTHER ACTIVITIES

Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Housing income 554 - - - 554 491
======== ======== ====== ====== ====== ======
5. INVESTMENT Total Total
INCOME Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Dividends receivable 221 - 234 - 455 367
Interest receivable 29 - 23 - 52 4
Rents
and		 income
from mineral
rights
receivable 527 - 53 - 580 683
------------------- ------------------- ------------------ ------------------- ------------------ -----------------
777 - 310 - 1,087 1,054
========= ========= ========= ========= ========= =======
6. OTHER INCOME
Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Sale of fixed assets 435 - - 572 1,007 452
Subsidiary income 296 - - - 296 263
Furlough income - - - - - 17
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
731 - - 572 1,303 732
========= ======== ========= ========= ========= =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

7. FUNDRAISING FUNDRAISING Total Total
COSTS Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Glebe agent’s 149 - - - 149 146
fee
Other land
agent
commission 208 1 - - 209 163
and
expenditure
Investment
management
charges 44 53 - - 97 100
------------------- ----------------- ----------------- -------------------- ------------------ ------------------
401 54 - - 455 409
========= ======== ========= ========= ========== =========

8. CHARITABLE ACTIVITIES

CHARITABLE
ACTIVITIES
Total Total
Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Contributions to
Archbishops’
Council
Training for Ministry 212 - - - 212 212
National Church
responsibilities 157 - - - 157 176
Retired clergy housing
costs 80 - - - 80 78
------------------- ------------------ ------------------ ------------------- ------------------ ------------------
449 - - - 449 466
------------------- ----------------- ------------------ ------------------- ------------------ ------------------
Resourcing Ministry and Mission
People costs
Stipends, salaries and
national insurance 4,787 - 646 - 5,433 5,216
Pension contributions 1,200 - - - 1,200 1,312
Housing costs 1,195 - - - 1,195 1,122
Removal, resettlement
and other expenses 212 - - - 212 168
------------------- ----------------- ------------------ ------------------- ------------------ ------------------
7,394 - 646 - 8,040 7,818
Support
for		 parish
ministry 1,084 - 318 - 1,402 1,512
------------------- ----------------- ------------------- ------------------- ------------------ ------------------
8,478 - 964 - 9,442 9,330
------------------- ------------------ ------------------ ------------------- ------------------ ------------------
8,927 - 964 - 9,891 9,796
======== ========= ========= ======== ========= =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

9. EXPENDITURE ON
CHURCH SCHOOLS
& DIOCESAN Total Total
PROJECTS Unrestricted funds Restricted Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Expenditure on
Education
Support for church - - 139 - 139 164
schools
------------------- ----------------- ------------------ ------------------- ------------------ ------------------
- - 139 - 139 164
========= ======== ========= ========= ========== =========

10. OTHER EXPENDITURE

Total Total
Unrestricted funds Restricte Endowment funds funds
General Designated Funds Funds 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000
Audit Fees- audit 18 - - - 18 18
Audit Fees- non-audit 4 - - - 4 4
Subsidiary expenses 209 - - - 209 195
------------------- ----------------- ------------------ ------------------- ------------------ ------------------
231 - - - 231 217
========= ======== ========= ========= ========= =========

11. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS

Activities Grant Total Total
Undertaken Funding of Support costs costs
Directly Activities Costs 2022 2021
£’000 £’000 £’000 £’000 £’000
Fundraising costs
Charitable activities: 455 - - 455 409
Contributions to Archbishop’s
Council - 449 - 449 466
Clergy pension scheme movement (93) - - (93) (7)
Resourcing ministry and mission 8,941 482 18 9,441 9,326
Church Schools and Diocesan
projects - 136 3 139 167
Governance costs - - 1 1 1
Other 231 - - 231 217
------------------ ------------------- ------------------ ----------------- ------------------
9.534 1,067 22 10,623 10,579
========= ========= ========= ======= ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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

Where costs cannot be directly attributed to particular headings, 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 2022 can be summarised as follows:

Resourcing ministry and mission 80.82% Church Schools 15.08% Diocesan Projects 1.97% Governance 2.13%

12. ANALYSIS OF GRANTS MADE 2022 2021
Number Individuals Institutions Total Total
£’000 £’000 £’000 £’000
From unrestricted funds for National
Church responsibilities:
Contributions to Archbishop’s Council
1 - 449 449 466
------------------ ------------------- ------------------ ------------------ ------------------
From unrestricted funds:
Refugee Roots 1 - 20 20 21
Clergy 29 74 - 74 63
Ordinands in training 203 246 - 246 280
Transforming Notts Together 1 - 20 20 25
From restricted funds for various
purposes within resourcing parish
ministry:
Growing Disciples/New Worshipping
Community Grants 34 - 120 120 128
Perry Gift 5 2 - 2 1
------------------ ------------------ ------------------ ------------------ ------------------
Total 274 322 609 931 984
========= ========== ========= ========= =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

13. STAFF COSTS 2022 2021
£’000 £’000
Employee costs during the year were as follows:
Salaries and stipends 1,664 1,542
National insurance contributions 165 145
Pension costs
Church of England Funded Pension scheme.
(2022 – 8 employees, 2021 - 7 employees) 59 60
Defined Benefit scheme.
(2022- 1 employee, 2021 - 1 employee) 52 52
Defined contribution schemes.
(2022 – 53 employees, 2021 - 57 employees) 134 129
----------------- ------------------
2,074 1,928
========= =========
The average number of persons employed by the group during the
year:
Number Number
Administration and financial management 31 32
Property 4 4
Discipleship and Ministry, Stewardship 15 14
Education 11 8
Communications 1 3
----------------- ------------------
62 61
========= =========
The average number of persons employed by the group during the year
based on full-time equivalents:
Number Number
Administration, safeguarding and financial management 22.46 21.40
Property 3.50 3.40
Discipleship & Ministry, Stewardship 12.68 14.10
Education 6.39 6.06
Communications 1.00 0.63
------------------ -----------------
46.03 45.59
======== ========

The number of people employed by the Board now include some posts that were previously funded by way of grant or contribution to a third party.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

13. STAFF COSTS (continued)
STAFF COSTS (continued) 2022 2021
Number Number
The numbers of staff whose emoluments (including benefits in kind but excluding
pension contributions) amounted to more than £60,000 were as follows:
£60,000 - £70,000 1 1
£70,001 - £80,000 1 1
========= =======
Pension payments of £ 14,493 (2021: £14,280) were made for these
employees.

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the diocese. During 2022 they were:

Diocesan Chief Executive and Mr M Cooper
Company Secretary
Director of Discipleship & Ministry Revd Canon Dr R Kellett
Director of Partnerships & Mission Revd D McCoulough (resigned 31 March 2023)
Director of Education & Mission Mr N Frith
Director of Communications vacant
Director of Finance Mrs R Bowes (resigned 24 February 2023)

Remuneration, including employers’ NI and employers’ pension contributions for these 5 (2021 : 6) employees amounted to £383,998 (2021: £379,444).

Directors’ emoluments

No Director received any remuneration for services as Director. 8 Directors received travelling and out of pocket expenses, totalling £7,910 (2021 - 6 Directors- £4,632) in respect of General Synod duties, duties as archdeacon or area dean, and other duties as Directors.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

13. STAFF COSTS (continued)

The following table gives details of the stipendiary Directors, including those who were in receipt of a stipend and/or housing provided by the Board during the year:

Stipend Housing
The Right Revd P Williams No No
The Right Revd A Emerton No Yes
The Ven V Ramsey Yes Yes
The Ven P Williams Yes Yes
The Revd S Hustwayte Yes Yes
The Revd Canon S D Silvester Yes Yes
The Revd L Lima Yes Yes
The Revd P Shaw Yes Yes
The Revd Canon M Tanner Yes Yes
The Revd Z Burton Yes Yes

The Board is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the diocese, other than bishops and cathedral staff. The Board is also responsible for the provision of housing for stipendiary clergy in the diocese including the Suffragan bishop but excluding diocesan bishop and cathedral staff.

The Board paid an average of 117 (2021 –118) stipendiary clergy as officeholders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

2022 2021
£’000 £’000
Stipends 3,112 3,179
National insurance contributions & Apprenticeship levy 283 273
Pension costs - current year 910 963
- deficit reduction 127 220
-------------------- --------------------
4,432 4,635
========= =========

The annual rate of stipend, funded by the Board, paid to Archdeacons in 2022 was in the range £36,100 - £38,000 (2021 range £36,100 – £38,000) and other clergy who were Trustees were paid in the range £25,770 - £27,519 (2021 range £25,265 – £26,979).

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

14. TRANSFERS BETWEEN FUNDS

A transfer from the general fund of £127,000 has been made to the Clergy pension fund within endowment funds for the costs incurred in the year.

A transfer from the general fund of £905,000 to stipends fund capital has been made for the profit on disposal of Wind FX Ltd, a subsidiary investment which was originally purchased from this fund.

A further transfer of £59,000 has been made to reflect the net assets of SNDBF solar Ltd, which is a further investment purchased from this fund.

15. TANGIBLE FIXED ASSETS - Company

Freehold
Houses Diocesan Office
(see & caretakers’ Office Motor
below) bungalow Equipment Vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2022 34,191 3,809 515 - 38,515
Additions 254 - 17 - 271
Disposals (1,967) - - - (1,967)
------------------ ------------------ ----------------- ------------------ -------------------
At 31 December 2022 32,478 3,809 532 - 36,819
------------------ ------------------ ----------------- ------------------- -------------------
Depreciation
At 1 January 2022 - 27 441 - 468
Charge for the year - - 40 - 40
Disposals - - - - -
------------------ ------------------ ----------------- ------------------ -------------------
At 31 December 2022 - 27 481 - 508
------------------ ------------------- ------------------ -------------------- --------------------
Net Book Value
At 31 December 2022 32,478 3,782 51 - 36,311
========== ========== ========= ========= =========
At 31 December 2021 34,191 3,782 74 - 38,047
========== ========== ========= ========= =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

15. TANGIBLE FIXED ASSETS - company (continued)

2022 2021 2021
Cost or Cost or
deemed
Number of		 deemed Number of
cost
houses		 cost houses
£’000 £’000
Endowment funds
Benefice houses fund
Parsonage houses 17,864
125		 17,858 125
Glebe funds
Housing of team vicars, curates & others 7,594
41		 8,751 44
Retirement houses -
-		 40 1
Unrestricted (designated) funds
Corporate property
City Centre Resource Church 1,498
1		 1,498 1
Housing of senior clergy, curates and others 5,382
19		 5,904 22
Houses subject to value-linked loans
Housing of curates and others 140
3		 140 3
--------------
-------------		 --------------- --------------
32,478
189		 34,191 196
======
======		 ====== ======

Diocesan offices include the caretaker’s bungalow situated in the grounds of Dunham House and amounts capitalised as part of the Jubilee House office build shown at cost. There is no reliable market value, but a valuation of both Jubilee House and the bungalow would be greater than historic cost. Dunham House is held in investment properties as it has been 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 is valued on a freehold market value basis.

All of the freehold houses included above are freehold and are vested in the Board, except for benefice houses which are vested in the incumbent. The Board is 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 value of land and buildings is less than the market value. The costs of revaluation are considered to outweigh the benefits to the reader of the accounts. 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-linked loan from the Church Commissioners; 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 (2021: £140,000). Of the total land and buildings at 31 December 2022, £14.3m are valued at cost (2021: £14.3m), with the rest at deemed cost. Properties are subject to a five-year cycle of survey and consequent repairs are charged as expenditure.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

15. TANGIBLE FIXED ASSETS – Group

Diocesan Wind
Office & Turbine
Freehold caretakers’ Office Motor & solar
Houses bungalow Equipment Vehicles panels Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2022
34,191 3,809 515 - 1,690 40,205
Additions 254 - 17 - 271
Disposals (1,967) - - - (1,464) (3,431)
------------------ ------------------ ---------------- ------------------ ------------------ -------------------
At 31 December 32,478 3,809 532 - 226 37,045
2022
------------------ ------------------ ----------------- ------------------ ------------------ -------------------
Depreciation
At 1 January 2022 - 27 441 - 407 875
Charge for the year - - 40 - 67 107
Disposals - - - - (395) (395)
------------------ ------------------ ----------------- ------------------ ------------------ -------------------
At 31 December - 27 481 - 79 587
2022
------------------ ------------------- ------------------ -------------------- ------------------ --------------------
Net Book Value
At 31 December 32,478 3,782 51 - 147 36,458
2022
========== ========== ========= ========= ========== =========
Net Book Value
At 31 December 34,191 3,782 74 - 1,283 39,330
2021
========== ========== ========= ========= ========== =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

16. FIXED ASSET INVESTMENTS – COMPANY & GROUP

At At 31
1 January Additions Unrealised December
2022 at cost Disposals gains/losses 2022
Listed investment securities £’000 £’000 £’000 £’000 £’000
Restricted funds 8,546 2,592 (2,623) (437) 8,078
Endowment funds 6,357 1,187 (1,078) (267) 6,199
Unrestricted funds 4,435 4,890 (4,597) (1,015) 3,713
------------------ ----------------- ------------------ ------------------ ------------------
19,338 8,669 (8,298) (1,719) 17,990
------------------ ----------------- ------------------ ------------------ ------------------
Unlisted investment securities
Restricted funds 86 - - (5) 81
Endowment funds 3,590 750 47 156 4,543
Unrestricted funds 963 - - (162) 801
------------------ ----------------- ------------------ ------------------ ------------------
4,639 750 47 (11) 5,425
------------------ ----------------- ------------------ ------------------ ------------------
Cash held for investment
purposes
Restricted funds 30 - - (1) 29
Endowment funds 369 - - - 369
Unrestricted funds 1,392 565 (267) - 1,690
------------------ ----------------- ------------------ ------------------ ------------------
1,791 565 (267) (1) 2,088
------------------ ----------------- ----------------- ------------------ ------------------
Investment properties
Restricted funds - - - -
Endowment funds 18,134 - (378) 663 18,419
Unrestricted funds 1,577 - - (40) 1,537
------------------ ------------------ ------------------ ------------------ ------------------
19,711 - (378) 623 19,956
------------------ ------------------ ------------------ ------------------ ------------------
Total 45,479 9,984 (8,896) (1,108) 45,459
======== ======== ======== ======== ========

Due to their nature the historic cost of investment properties is not known. Included in the above are the following unrealised gains -Endowment funds £1,399,749 (2021 - £1,294,184) Restricted funds £201,300 (2021 - £1,637,915) and unrestricted funds £ 942,316 (2021 - £3,093,896).

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

17. SUBSIDIARIES

The Diocesan Board of Finance had two trading subsidiaries; Wind FX Limited which is incorporated in the United Kingdom (company number 09601836) and was 60% owned by the Board. Wind FX Limited was incorporated on 20 May 2015 and the Board acquired its shares on 4 December 2015. This company was sold on 22 December 2022, and is not owned at the year end.

SNDBF Solar Limited is incorporated in the United Kingdom (company number 09792284) and was incorporated on 23 September 2015, and the shares were acquired on the same date. Both companies operate in the renewable energy sector.

sector.
SNDBF
Solar
Limited
The summary financial performance of the subsidiary is: 2022
£’000
Turnover 32
Expenses 19
------------------
Net (Loss)/Profit 13
=========
The assets and liabilities of the subsidiary is:
Fixed assets 147
Current Assets 160
Current liabilities (228)
Provisions (20)
Long term liabilities -
------------------
Net (liabilities)/assets 59
------------------
Represented by
Share Capital -
Reserves 59
=========

Both subsidiary has taken advantage of exemption from audit under section 479A Companies Act 2006.

18. DEBTORS

GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
as restated
Due within one year £’000 £’000 £’000 £’000
Current year Parish share 74 74 71 71
Loans to parishes 25 25 25 25
Rent debtors 121 121 124 124
Trade debtors 153 153 345 345
Other debtors 1,945 1,931 422 251
Amounts due from subsidiary - - - 3
Prepayments 168 168 70 70
----------------- ----------------- ----------------- -----------------
2,486 2,472 1,057 889
Due after more than one year ----------------- ----------------- ----------------- -----------------
Loans to parishes 65 65 90 90
Amounts due from subsidiary - 226 - 1,091
----------------- ----------------- ----------------- -----------------
65 291 90 1,181
----------------- ----------------- ----------------- -----------------
Total debtors 2,551 2,763 1,147 2,070
========= ========= ========= =========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

19. CREDITORS: amounts falling due within one year

GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
£’000 £’000 £’000 £’000
Mission development fund grants 31 31 31 31
Other taxes and social security - - - -
Trade Creditors 94 94 45 45
Other creditors and accruals 1,979 1,957 1,259 1,148
Amounts owed to subsidiaries - 146 - 121
Clergy pension scheme - - 220 220
------------------ ------------------ ------------------ ------------------
Total creditors: amounts falling due within one
year 2,104 2,228 1,555 1,565
======== ======== ======== ========
CREDITORS: amounts falling due after more
than one year
20. GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
£’000 £’000 £’000 £’000
Loan repayment instalments due after more than
one year
Church Commissioners value-linked loans 99 99 134 134
Sundry creditors
Shareholder loans - - 576 -
Southwell & Nottingham Board of Education 1 1 1 1
Loan with the Central Board of Finance – interest 8 8 8 8
free
----------------- ----------------- ----------------- -----------------
108 108 719 143
Pension scheme liabilities - - 1,387 1,387
------------------ ------------------ ------------------ ------------------
Total creditors: amounts falling due after more
than one year 108 108 2,106 1,530
======== ======== ======== ========

Value-linked loans (VLLs) represent amounts advanced to the DBF for the purchase of properties on an equity sharing basis and are repayable on the disposal of the related property. Interest at the time of the advance is at the rate of 4% per annum (3% per annum on loans advanced on or before 31 December 1992) rising annually by the increase in the Retail Prices Index. As the date of disposal of the property is not known, the analysis of the date due cannot be calculated.

CREDITORS: amounts falling due after more than one year

GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
£’000 £’000 £’000 £’000
The maturity of the above loans may be analysed as
follows:
Between one and two years 9 9 32 9
Between two and five years - - 118 -
In five years or more 99 99 569 134
----------------- ----------------- ----------------- -----------------
108 108 719 143
======== ======== ======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

21. SUMMARY OF FUND MOVEMENTS - GROUP

Balance Balances at
at 1 31
January Gains and December
2022 Income Expenditure Transfers Losses 2022
as restated (Note 14)
£’000 £’000 £’000 £’000 £’000 £’000
ENDOWMENT FUNDS
Expendable
Benefice houses fund 17,858 572 - - - 18,430
Stipends fund capital 37,882 - - 964 953 39,799
Parsonages capital 187 - - - (21) 166
Clergy pension fund deficit (221) - 93 127 - (1)
Permanent funds
Stipends 1,688 - - - 34 1,722
Bramcote Bungalows 1,094 - - - (124) 970
Haseldine Homes 631 - - - (66) 565
Perry Gift Fund 877 - - - (99) 778
Other permanent endowment
funds 543 - - - (69) 474
------------------ ----------------- ------------------ -------------------- ------------------ ------------------
60,539 572 93 1,091 608 62,903
------------------ ----------------- ------------------ ------------------- --------------- ------------------
RESTRICTED FUNDS
Diocesan Board of Education 8,997 219 (386) - (1,101) 7,729
Pastoral Account 221 - (26) - - 195
Strategic Development
funding - 661 (661) - - -
Other restricted income funds 479 127 (84) - (5) 517
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
9,697 1,007 (1,157) - (1,106) 8,441
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
UNRESTRICTED FUNDS
General Fund 5,441 9,916 (9,331) 253 (405) 5,874
Non-controlling interest (45) 263 (257) 42 (3) -
Designated reserves
Accumulated Capital 8,498 - - - 620 9,118
Mission Development fund 108 - - - - 108
Closed
pension		 scheme
deficit funding 1,386 - - (1,386) - -
Defined
benefit		 pension
scheme liability (1,386) - 29 - 1,357 -
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
14,002 10,179 (9,559) (1,091) 1,569 15,100
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
TOTAL 84,238 11,758 (10,623) - 1,071 86,444
======== ======= ======== ======== ======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

21. SUMMARY OF FUND MOVEMENTS - GROUP (prior year)

Balances
at
Balance at Gains 31
1 January and December
2021 Income Expenditure Transfers Losses 2021
as restated as restated
£’000 £’000 £’000 £’000 £’000 £’000
ENDOWMENT FUNDS
Expendable
Benefice houses 17,632 - - 226 - 17,858
Stipends fund capital 37,760 - - (226) 348 37,882
Parsonages capital 163 - - - 24 187
Clergy pension fund deficit (447) - 7 219 - (221)
Permanent funds
Stipends 1,457 - - - 231 1,688
Bramcote Bungalows 944 - - - 150 1,094
Haseldine Homes 551 - - - 80 631
Perry Gift Fund 758 - - - 119 877
Other permanent endowment
funds 474 - - - 69 543
------------------ ----------------- ------------------ ------------------- ----------------- ------------------
59,292 - 7 219 1,021 60,539
------------------ ----------------- ------------------ ------------------- --------------- ------------------
RESTRICTED FUNDS
Diocesan Board of Education 8,189 245 (307) - 870 8,997
Pastoral Account 89 137 (11) - 6 221
Strategic Development
funding - 521 (521) - - -
Other restricted income funds 447 - - - 32 479
------------------ ----------------- ------------------ ------------------- ----------------- ------------------
8,725 903 (839) - 908 9,697
------------------ ----------------- ------------------ ------------------- ----------------- ------------------
UNRESTRICTED FUNDS
General Fund
Designated reserves 4,524 9,908 (9,833) 366 476 5,441
Non-controlling interest (36) - - - (9) (45)
Accumulated Capital 8,498 - - - - 8,498
Mission Development 108 - - - - 108
Fund
Closed Pension scheme
Deficit funding 1,971 - - (585) - 1,386
Defined
benefit		 pension
scheme liability (1,971) - 86 - 499 (1,386)
------------------ ----------------- ------------------ ------------------- ----------------- ------------------
13,094 9,908 (9,747) (219) 966 14,002
------------------ ----------------- ------------------ ------------------- ----------------- ------------------
TOTAL 81,111 10,811 (10,579) - 2,895 84,238
======== ======= ======== ======== ======= ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

21. SUMMARY OF FUND MOVEMENTS - COMPANY

Balances Balances
at at
1 Gains 31
January and December
2022 Income Expenditure Transfers Losses 2022
as restated (Note 14)
£’000 £’000 £’000 £’000 £’000 £’000
ENDOWMENT FUNDS
Expendable
Benefice houses fund 17,858 572 - - - 18,430
Stipends fund capital 37,882 - - 905 953 39,740
Parsonages capital 186 - - - (21) 165
Clergy pension fund deficit (221) - 93 127 - -1
Permanent funds
Stipends 1,688 - - - 34 1,722
Bramcote Bungalows 1,094 - - - (124) 970
Haseldine Homes 631 - - - (66) 565
Perry Gift Fund 877 - - - (99) 778
Other permanent
endowment funds 544 - - - (69) 475
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
60,539 572 93 1,032 608 62,844
------------------ ----------------- ------------------ ------------------- --------------- ------------------
RESTRICTED FUNDS
Diocesan Board of Education 8,997 219 (386) - (1,101) 7,729
Pastoral Account 221 - (26) - - 195
Strategic Development
funding - 661 (661) - - -
Other restricted income funds 479 127 (84) - (5) 517
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
9,697 1,007 (1,157) - (1,106) 8,441
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
UNRESTRICTED FUNDS
General fund 5,418 9,940 (9,369) 354 (469) 5,874
Designated reserves
Accumulated Capital 8,498 620 9,118
Mission Development 108 - - - - 108
Closed Pension scheme
deficit funding 1,386 - (1,386) - -
Defined
benefit		 pension
scheme (1,386) - 29 - 1,357 -
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
14,024 9,940 (9,340) (1,032) 1,508 15,100
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
TOTAL 84,260 11,519 (10,404) - 1,010 86,385
======== ======== ======== ======== ======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

21. SUMMARY OF FUND MOVEMENTS -COMPANY (prior year)

Balances Balances at
at Gains 31
1 January and December
2021 Income Expenditure Transfers Losses 2021
as restated as restated
£’000 £’000 £’000 £’000 £’000 £’000
ENDOWMENT FUNDS
Expendable
Benefice houses fund 17,632 - - 226 - 17,858
Stipends fund capital 37,760 - - (226) 348 37,882
Parsonages capital 162 - - - 24 186
Clergy pension fund deficit (447) - 7 219 - (221)
Permanent funds 1,457 - - - 231 1,688
Stipends 944 - - - 150 1,094
Bramcote Bungalows 551 - - - 80 631
Haseldine Homes 758 - - - 119 877
Perry Gift Fund
475 - - - 69 544
Other permanent endowment ------------------ ----------------- ------------------ ------------------- ------------------ ------------------
funds
59,292 - 7 219 1,021 60,539
------------------ ---------------- ------------------ ------------------- --------------- ------------------
RESTRICTED FUNDS
Diocesan Board of Education 8,189 245 (307) - 870 8,997
Pastoral Account 89 137 (11) - 6 221
Strategic Development
funding - 521 (521) - - -
Other restricted income funds 447 - - - 32 479
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
8,725 903 (839) - 908 9,697
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
UNRESTRICTED FUNDS
General Fund 4,500 9,732 (9,638) 366 458 5,418
Designated reserves
Accumulated Capital 8,498 - - - - 8,498
Mission Development fund 108 - - - - 108
Closed
pension		 scheme
deficit funding 1971 - - (585) - 1,386
Defined
benefit		 pension
scheme liability (1,971) - 86 - 499 (1,386)
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
13,106 9,732 (9,552) (219) 957 14,024
------------------ ----------------- ------------------ ------------------- ------------------ ------------------
TOTAL 81,123 10,635 (10,384) - 2,886 84,260
======== ======== ======== ======== ======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

22. GROUP
SUMMARY OF ASSETS BY FUND Fixed assets
-CURRENT YEAR Tangible & Current Net
Intangible Investments Assets Creditors Assets
£’000 £’000 £’000 £’000 £’000
Endowment funds
Expendable endowment funds
Benefice houses 17,864 566 - - 18,430
Stipend fund capital 14,730 24,252 1,065 (248) 39,799
Parsonages capital - 166 - - 166
Clergy Pension fund deficit - - - - -
Permanent endowment funds 30 4,478 4,508
----------------- ------------------ ------------------- ------------------ ------------------
32,624 29,462 1,065 (248) 62,903
----------------- ------------------ ------------------- ------------------ ------------------
Restricted
Diocesan Board of Education - 7,446 1,143 (860) 7,729
Pastoral account - - 195 - 195
Other restricted income funds - 816 19 (318) 517
----------------- ------------------ ------------------- ------------------ ------------------
- 8,262 1,357 (1,178) 8,441
----------------- ------------------ ------------------- ------------------ ------------------
Unrestricted funds
General fund 3,834 2,251 575 (786) 5,874
Designated funds
Accumulated capital - 5,484 3,634 - 9,118
Other designated funds - - 108 - 108
Pension reserve - - - - -
----------------- ------------------ ------------------- ------------------ ------------------
3,834 7,735 4,317 (786) 15,100
------------------- ------------------ ------------------- ------------------ --------------------
Total funds at 31 December 2022 36,458 45,459 6,739 (2,212) 86,444
========= ========= ========= ========= ==========
GROUP SUMMARY OF ASSETS
BY FUND – PRIOR YEAR Fixed assets
Tangible & Current Net
Intangible Investments Assets Creditors Assets
as restated
£’000 £’000 £’000 £’000 £’000
Endowment funds
Expendable endowment funds
Benefice houses 17,858 - - - 17,858
Stipend fund capital 10,627 27,255 - - 37,882
Parsonages capital - 187 187
Clergy Pension fund deficit - - - (221) (221)
Permanent endowment funds 30 4,465 338 - 4,833
----------------- ------------------ ------------------- ------------------ ------------------
28,515 31,907 338 (221) 60,539
----------------- ------------------ ------------------- ------------------ ------------------
Restricted
Diocesan Board of Education - 7,620 1,993 (616) 8,997
Pastoral account - - 221 - 221
Other restricted income funds 1,283 222 (120) (906) 479
----------------- ------------------ ------------------- ------------------ ------------------
1,283 7,842 2,094 (1,522) 9,697
----------------- ------------------ ------------------- ------------------ ------------------
Unrestricted funds
General fund 1,034 5,622 (773) (532) 5,351
Designated funds
Accumulated capital 8,498 - - - 8,498
Other designated funds - 108 1,386 - 1,494
Pension reserve - - - (1,386) (1,386)
----------------- ------------------ ------------------- ------------------ ------------------
9,532 5,730 613 (1,918) 13,957
------------------- ------------------ ------------------- ------------------ --------------------
Total funds at 31 December 2021 39,330 45,479 3,045 (3,661) 84,193
========= ========= ========= ========= ==========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

22. COMPANY
SUMMARY OF ASSETS BY FUND - Fixed assets Current Net
CURRENT YEAR Tangible Investments Assets Creditors Assets
£’000 £’000 £’000 £’000 £’000
Endowment funds
Expendable endowment funds
Benefice houses 17,864 566 - - 18,430
Stipend fund capital 14,583 24,252 905 - 39,740
Parsonages capital - 165 - - 165
Clergy Pension fund deficit - - -
Permanent endowment funds 30 4,479 - - 4,509
----------------- ------------------ ------------------- ------------------ ------------------
32,477 29,462 905 - 62,844
----------------- ------------------ ------------------- ------------------ ------------------
Restricted
Diocesan Board of Education - 7,446 1,143 (860) 7,729
Pastoral account - - 195 - 195
Other restricted income funds 147 816 745 (1,191) 517
----------------- ------------------ ------------------- ------------------ ------------------
147 8,262 2,083 (2,051) 8,441
----------------- ------------------ ------------------- ------------------ ------------------
Unrestricted funds
General fund 3,687 2,252 220 (285) 5,874
Designated funds
Accumulated capital - 5,483 3,635 - 9,118
Other designated funds - - 108 - 108
Pension reserve - - - - -
----------------- ------------------ ------------------- ------------------ ------------------
3,687 7,735 3,963 (285) 15,100
------------------- ------------------ ------------------- ------------------ --------------------
Total funds at 31 December 2022 36,311 45,459 6,951 (2,336) 86,385
========= ========= ========= ========= ==========
COMPANY SUMMARY OF ASSETS
BY FUND – PRIOR YEAR Fixed assets Current Net
Tangible Investments Assets Creditors Assets
as restated
£’000 £’000 £’000 £’000 £’000
Endowment funds
Expendable endowment funds
Benefice houses 17,858 - - - 17,858
Stipend fund capital 10,627 27,255 - - 37,882
Parsonages capital - 186 186
Clergy Pension fund deficit - - - (221) (221)
Permanent endowment funds 30 4,466 338 - 4,834
----------------- ------------------ ------------------- ------------------ ------------------
28,515 31,907 338 (221) 60,539
----------------- ------------------ ------------------- ------------------ ------------------
Restricted
Diocesan Board of Education - 7,620 1,993 (616) 8,997
Pastoral account - - 221 - 221
Mission development fund - 222 257 - 479
Other restricted income funds ----------------- ------------------ ------------------- ------------------ ------------------
- 7,842 2,471 (616) 9,697
----------------- ------------------ ------------------- ------------------ ------------------
Unrestricted funds
General fund 1,034 5,622 (366) (872) 5,418
Designated funds
Accumulated capital 8,498 - - - 8,498
Other designated funds - 108 1,386 - 1,494
Pension reserve - - - (1,386) (1,386)
----------------- ------------------ ------------------- ------------------ ------------------
9,532 5,730 1,020 (2,258) 14,024
------------------- ------------------ ------------------- ------------------ --------------------
Total funds at 31 December 2021 38,047 45,479 3,829 (3,095) 84,260
========= ========= ========= ========= ==========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

23. DESCRIPTION OF FUNDS

Expendable Endowment Funds – investment income is usable only for the specific purposes for which the endowment was given and the trustees may convert the capital into spendable income depending on various restrictions:

Benefice houses fund represents the value of benefice houses at the balance sheet date together with the Parsonages Building funds held by the Church Commissioners. These houses are used to provide accommodation for parochial clergy. The Board is not free to dispose of the houses except in accordance with appropriate measures. Stipends fund capital represents the proceeds of the sale of glebe, parsonages transferred by (Glebe funds) 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 Endowments and Glebe Measure 1976 and the Church of England (Miscellaneous Provisions) Measure 1992. Parsonages Capital the income to be applied to meet personage houses costs. Clergy pension fund details contained in note 27. deficit

Permanent Endowment Funds – investment income only is usable for the specific 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
assistance.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

23. DESCRIPTION OF FUNDS

Other Permanent Endowment Funds

Ministers in training to provide grants to ministers in training. Miss E L Brown Trust to be applied at the discretion of the Bishop of Southwell. Nottingham University to pay the expenses of the Nottingham University chaplaincy. Chaplaincy Sacrista Canonry to be applied for the Canon appointed to occupy the stall of the Canonry of Sacrista in Southwell Minister.

Southwell House/Hostel to be applied to property outgoings. Charity

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 they were given:

Diocesan Board of to administer the scheme for the Diocese’s Church Schools’ building Education programme 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 churches and parsonages which have not yet been applied to the purposes permitted by the Pastoral Measure 1983.

Strategic Development represents sums of money made available by the Archbishop’s Council set Fund aside for mission development.

Other Restricted Funds Landon Bequest to fund Church of England students and Ordinands to serve overseas. Natal Link Fund represents donations from parishes and individuals for general work and specific projects in the Diocese of Natal.

Readers Association to meet central costs for Readers. Industrial Chaplaincies to meet central costs for industrial chaplaincies.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

23. DESCRIPTION OF FUNDS

Designated Funds – general funds that the Trustees have chosen to use for a specific purpose:

Accumulated Capital represents amounts transferred from the general fund, gains less losses on Fund investments and the directors’ valuation of property transferred at no cost. This fund is designated for use to purchase fixed assets. Mission Development Amounts in addition to the restricted fund set aside for Mission Fund Development. Closed Pension Fund amounts transferred from the general fund to meet future deficit Deficit Funding contributions.

General fund - the general fund is the Board’s unrestricted undesignated fund available for any of the Board’s purposes without restriction.

24. CAPITAL COMMITMENTS

At 31 December 2022 the Group had capital expenditure commitments authorised but not contracted for of £NIL (2021 - £NIL) and contracted for but not yet due of NIL (2021 - £10,000).

25. OPERATING LEASES

Total commitments under non-cancellable operating leases are as follows:

GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
£’000 £’000 £’000 £’000
Other operating leases where the lease expires:
Within one year of the balance sheet date - - 27 -
In the second to fifth years inclusive of the balance
sheet date - - 100 -
Over five years from the balance sheet date - - 400 -
---------------------- ---------------------- --------------------- ----------------------
- - 527 -
======== ======== ======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

25. OPERATING LEASES (continued)

Analysed as follows GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
Land & Buildings £’000 £’000 £’000 £’000
Other operating leases where the lease expires:
Within one year of the balance sheet date - - 27 -
In the second to fifth years inclusive of the
balance sheet date - - 100 -
Over five years from the balance sheet date
- - 400 -
--------------------- ---------------------- --------------------- ----------------------
- - 527 -
======== ======== ======== ========
GROUP COMPANY GROUP COMPANY
2022 2022 2021 2021
Other £’000 £’000 £’000 £’000
Other operating leases where the lease expires:
Within one year of the balance sheet date - - - -
In the second to fifth years inclusive of the
balance sheet date - - - -
Over five years from the balance sheet date
- - - -
--------------------- ---------------------- --------------------- ----------------------
- - - -
======== ======== ======== ========

26. CONTINGENT LIABILITIES

The Board has given guarantees on grants made by Nottingham City Council from public funds to various parishes totalling £NIL (2021 - £2,075). 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. PENSIONS

The Board participates in two pension schemes, both of which hold the assets of the schemes separately from those of the Board and the other participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy, the other is The Southwell and Nottingham Diocesan Board of Finance Staff Retirement Benefit Scheme for lay staff.

Church of England Funded Pension Scheme

This scheme is administered by the Church of England Pensions Board. Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

27. PENSIONS (continued)

Church of England Funded Pension Scheme (continued)

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year (2022 £909,903- 2021 £912,000) plus the impact of deficit contributions (see below).

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

Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

A reconciliation of the balance sheet liability is set out below:

GROUP& GROUP&
COMPANY COMPANY
2022 2021
£’000 £’000
Balance sheet liability as at 1 January 221 447
Contributions paid (128) (220)
Interest cost (recognised in the SOFA) - 1
Re-measurement of the balance sheet liability (93) (7)
--------------------- ---------------------
Balance sheet liability as at 31 December - 221
======== ========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

27. PENSIONS (continued)

This liability 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 2022 December 2021 December 2019
Discount rate n/a 0.0% 0.2%
Price inflation n/a n/a 3.1%
Increase to total pensionable payroll n/a -1.5% 1.6%

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 liabilities.

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 multiemployer pension scheme, 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 period (until 2022). Upon transition, the Board has recognised the present value of deficit funding contributions. As at 31 December 2022, this amounted to £nil for the Clergy Pension Scheme (2021: £221,000).

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 before 1st April 1993. The Board is required to follow Financial Reporting 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 amongst the active members of the scheme - a member-nominated trustee. One trustee is appointed from amongst the membership of Bishop's Council (the Board of Directors) and the third and final trustee is the officeholder of the post 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 the year the Board paid contributions of £109,000 (2021 - £109,000). The Board's agreed future contribution rate equates to 34% of pensionable salaries (previously 24%) and member employees contribute 5% to the Scheme.

The annual contribution to the scheme is charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Board.

2022 2021
The main financial assumption are
Basis Basis
Discount rate 4.9% 1.8%
Inflation(RPI) 3.3% 3.5%
Inflation(CPI) 2.3% 2.5%
Pension increases 3.2% 3.5%
Salaryincreases 3.4%

From 1 January 2019 the assets are invested with Schroders with 75% in equities and 25% in bonds.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

27. PENSIONS (continued)

The overall expected return on assets assumption has been determined with reference to the underlying asset allocation on the assets held and the expected long-term rate of return on those asset classes at the year end.

Amounts recognised in the Statement of Financial Activities:

2022 2021
£000 £000
Current service (cost) - -
Interest (cost) (67) (64)
Administration costs - -
Interest on assets 91 41
----------------- -----------------
(67) (23)
----------------- -----------------

Reconciliation of assets and defined benefit obligations:

Fair Value of assets: £000 Defined benefit obligations: £000
As at 1 January 2022 3,753 As at 1 January 2022 5,139
Interest on assets 67 Current service costs -
Employer contributions 109 Contributions by Scheme -
participants
Contributions by Scheme - Interest cost 91
participants
Benefits paid (154) Benefits paid (154)
Experience loss on liabilities 76
Return on plan assets less interest (425) Changes to financial assumptions
(1,858)
----------------- ------------------
As at 31 December 2022 3,350 As at 31 December 2022 3,294
----------------- ------------------
Net asset £56
========

The defined benefit pension scheme asset has been recognised in other debtors.

Scheme deficit funding of £1,386,000 aside in a designated fund, has been released in the year.

Summary of pension liabilities 2022 2021
£000 £000
Church of England Pension scheme - 221
SNDBF Retirement Scheme (56) 1,386
----------------- -----------------
(56) 1,607
----------------- -----------------
Included in:
Current assets 56 -
Current liabilities - 220
Long term liabilities - 1,387
----------------- -----------------
56 1,607
----------------- -----------------

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

28. PRIOR YEAR COMPARATIVE CONSOLIDATED SOFA AS RESTATED

Unrestricted Restricted Endowment Total funds
Funds Funds Funds 2021
£’000 £’000 £’000 £’000
Income and endowments from
Donations
Deanery share 5,384 - - 5,384
Archbishops’ Council 1,760 521 - 2,281
Other donations 146 - - 146
Charitable activities 691 32 - 723
Other activities 490 1 - 491
Investments 843 211 - 1,054
Other 331 401 - 732
-------------------- ---------------- --------------- -------------------
9,645 1,166 - 10,811
-------------------- ---------------- --------------- -------------------
Expenditure on
Raising funds 335 74 - 409
Charitable activities 9,195 601 - 9,796
Clergy pension scheme movement - - (7) (7)
Church schools & Diocesan projects
- 164 - 164
Other 22 195 - 217
-------------------- ---------------- --------------- -------------------
9,552 1,034 (7) 10,579
-------------------- ---------------- --------------- -------------------
Net income before investment gains
93 132 7 232
Other recognised gains/(losses)
Net gains on investments 458 908 1,021 2,387
Gains/(losses) from changes in
financial assumptions on defined
benefit pension scheme 499 - - 499
-------------------- ---------------- --------------- -------------------
Net income 1,050 1,040 1,028 3,118
Transfers between funds (219) - 219 -
Non-controlling interest - 9 - 9
-------------------- ---------------- ----------------- -------------------
Net movement in funds 831 1,049 1,247 3,127
--------------------- ------------------ ------------------ -----------------------
Total funds brought forward 13,019 8,800 59,292 81,111
-------------------- ------------------ ------------------ -----------------------
Total funds carried forward 13,850 9,849 60,539 84,238
========= ========= ========= ==========

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

29. RELATED PARTY TRANSACTIONS

Church Urban Fund (CUF) Joint Venture

The Board of Finance and CUF are the founding members of a subsidiary of CUF, “Transforming Notts Together”, which is a charitable company limited by guarantee and in partnership between the Board of Finance and CUF. TNT paid the Board £108,253 (2021-£111,206) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2022 was £30,556 (2021- £11,996).

The Diocese of Southwell & Nottingham Education Trust

This Charity has been set up in response to the likely challenge 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 perform a role in the Diocese 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 Ian Griffiths, Revd Canon Mark 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 Academy Trust

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 Philip Blinston, Roger Periam, Hilary Craik, Chris Moodie, Angela Pae, John Loughton, Joanne Saville, and Nigel Frith. The Multi Academy Trust paid the Board £26,034 (2021- £38,749) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2022 was £7,514 (2021 - £13,126).

Grant-making (beneficiary-selection) policy

Grants are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for ministry). Grants are paid to other connected charities and to other charitable projects which appear to the Board of Finance to support the furtherance of the Board of Finance’s objects.

Other related parties

Canon M Arlington, Chair of the Finance Committee is a Governor of the Samworth Church Academy in Mansfield. The balance outstanding at 31 December 2022 was £8,539 (2021 - £8,307). Transactions during the year were £33,679 (2021 - £33,087) in respect of reimbursement for salaries and expenses.

Subsidiaries

During the year, the Board received loan interest from Wind FX Limited of £64,863 (2021-£86,484). Wind FX Limited also paid the Board £3,500 (2021-£3,000) towards accountancy costs in the year. At 31 December 2022 Wind FX Limited owed the Board £NIL (2021-£864,848). SNDBF Solar Limited owes the Board £226,190 (2021£226,190) at 31 December 2022 and the Board owes SNDBF Solar £145,859 (2021-£121,283).

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

30. PRIOR YEAR ADJUSTMENT

The 2021 financial statements have been restated to correct the allocation of restricted and unrestricted funds. The adjustment is due to the reclassification of funds relating to the trading subsidiaries as unrestricted rather than restricted and small classification errors. None of the funds reclassified were ever considered to be restricted funds. The effect on the opening funds is as follows:

Amount as
originally Prior year
reported adjustment As re-stated
£000 £000 £000
Company balance sheet
Restricted funds 9,784 (87) 9,697
Unrestricted funds 5,331 87 5,418
Consolidated balance sheet
Restricted funds 9,849 (152) 9,697
Unrestricted funds 5,244 152 5,396

The 2021 consolidated balance sheet has also been amended to correct the reporting of the minority interest. The minority interest was previously reported incorrectly within other debtors. The effect of the adjustment is to reduce net assets by £45k as detailed below. The financial statements now account for the deficit minority interest of £45k within the funds section of the balance sheet.

Amount as
originally Prior year
reported adjustment As re-stated
£000 £000 £000
Consolidated balance sheet
Debtors 1,192 (45) 1,147
Net assets 84,011 (45) 83,966

A further prior year adjustment has been made to reflect an investment in a quarry at its fair value. The change in fair value of the quarry in the year to 31 December 2021 has been recognised in gains/(losses) on investments.

Amount as
originally Prior year
reported adjustment As re-stated
£000 £000 £000
Company and consolidated balance sheet
Fixed asset investments 45,252 227 45,479
Endowment funds 60,312 227 60,539
Consolidated statement of financial activities
Gains/(losses) on investments 2,645 (258) 2,387
Total funds brought forward 80,626 485 81,111

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

31. FUNDS HELD AS CUSTODIAN TRUSTEE

The Board acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. Assets held in this way are not aggregated in these financial statements as the Board does not control them. Each year an annual statement of value is made available to all PCCs. The market value of investment held on behalf of PCCs and others is £8.5m, cost £4.0m (2021- £9.56 million, cost £3.8 million).

32. DEVOLVED CAPITAL FORMULA

Since April 2006, the Education Funding Agency (EFA) have paid devolved Formula Capital (DFC), directly to schools or dioceses before the funds are spent on capital projects. This year education restricted funds received £16,016 on behalf of 2 schools (2021- £235,567 on behalf of 7 schools). These funds are maintained in individual school ledgers with payments and governors 10% contributions shown.

The Schools Executive Officer monitors these accounts and advises schools of current balances and authorises payments. At the year end the balance of these DFC accounts was £11,320 (2021-£51,203) which is not included in these accounts.

33. COLLABORATION AGREEMENT

In 2010 the Board entered into a collaboration agreement with 5 other parties to develop land for housing. The terms of the agreement 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 agreement, but at 31 December 2022, the timing and receipt of these funds cannot be measured with any certainty. During 2021 the four parcels of land owned by the Board were sold to the housing developer, but in 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, regarding a small piece of land that is part of the agreement owned by the Board.

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