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2023-12-31-accounts

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2023

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TABLE OF CONTENTS For the year ended 31 December 2023

Page Number
Administrative Details 1
Chairman’s Foreword 3
Legal Objects 5
Trustees’ Responsibilities 6
Strategic Report 7
Independent Auditor’s Report 16
Consolidated Statement of Financial Activities 20
Consolidated Balance Sheet 22
Company Balance Sheet 24
Consolidated Cash Flow Statement 26
Notes to the Financial Statements 27

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

ADMINISTRATIVE DETAILS

For the year ended 31 December 2023

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 Lord 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 (resigned 16.08.23) Revd Z Burton

LAITY (9)

Newark Archdeaconry (4)

Professor P Harris (b) Mr R Brand Mrs C Shaw Vacant

Nottingham Archdeaconry (3)

Revd Canon S Silvester Revd P Shaw (resigned 31.01.24) 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 ADVISORS

Diocesan Chief Executive & Company Secretary Diocesan Registrar, Bishop's Legal Secretary

& Legal Adviser to the Board of Finance

Mr M L Cooper BA (Hons) FCA ATII

Mrs A J Redgate LLB

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Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

ADMINISTRATIVE DETAILS (continued) For the year ended 31 December 2023

JUBILEE HOUSE LEADERSHIP TEAM

Director of Discipleship & Ministry (resigned 31.12.23) Director of Discipleship & Ministry (appointed 01.01.24) Diocesan Director of Education Director of Communications Director of Finance (appointed 01.08.23) HR Manager Programme Manager Diocesan Safeguarding Advisor

BANKERS

Lloyds Bank, Nottingham

SOLICITORS Rotheras, Nottingham

MINING, MINERALS, ENGINEERING & ENVIRONMENTAL CONSULTANTS Mineral Surveying Associates

Revd Canon Dr R Kellett BTh (Hons), BSc (Hons), MA, PhD Revd James Halstead Mr N Frith BA MA NPQH Vacant Mrs K Proctor FCMA Mrs J Brothwell Mr N Peake Mr J Hodgson

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

AUDITOR

BHP LLP 2 Rutland Park Sheffield S10 2PD

REGISTERED ADDRESS

Jubilee House Westgate Nottingham NG25 0JH

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Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHAIRMAN’S FOREWORD For the year ended 31 December 2023

‘For God, who said “Let light shine out of darkness” made his light shine in our hearts to give us the light of the knowledge of God’s glory displayed in the face of Christ’.

2 Corinthians 4:6

Reflecting on 2023, with the escalation of conflict in Israel and Gaza, as well as the ongoing conflict in Ukraine, and tensions elsewhere we continued to see a world that is not at peace with itself. Closer to home, our national life has been challenged by an ongoing cost-of-living crisis and heightened rates of inflation, bringing new levels of hardship and anxiety to many. And locally too, towards the end of the year, storms caused the River Trent to break its banks and flood land and homes across Nottinghamshire.

It is surely against this background of conflict, despondency and uncertainty that as disciples of Christ, we are called to evermore firmly fix our eyes on the Lord and to find in him our living hope, shining out evermore brightly as a beacon of light and love in our lives and in our land.

Indeed, as we look ahead to 2030 and beyond, our refreshed Diocesan Vision is to see Living Hope for the City, Towns and Villages of Nottinghamshire and beyond. Whilst this is a vision for the future, as I reflect upon this past year, I would like to highlight three of the many points of encouragement there have been for me, seeing God’s glory displayed across the rich diversity of contexts which make up the diocese:

The monthly Diocesan Days of Prayer continued to be a source of refreshment and encouragement touching hundreds of lives throughout 2023, and as the diocesan leadership team shared in prayer gatherings throughout the diocese. I enjoyed a particularly memorable morning in Selston church with a group of primary school children who helped to lead and inspire our prayers in fresh ways. Their contagious enthusiasm, curiosity and openness to discover more about prayer as an opportunity to be in relationship with God certainly stirred and touched the more ‘regular’ church goers among us! In the evenings, groups gathered in Southwell and encountered God through different styles of worship – some attending both traditional evensong in the Minster and then a more contemporary worship gathering, during which it was a privilege to hear stories of God at work in many different places and people across the diocese. It was a joy to host several hundred over supper as part of those evenings too. The Nottingham City Prayer meetings, that have been drawing people together from across the city for a number of years now, continues to be a significant expression of partnership and shared mission with churches from many denominations. There have been many surprising and heartening answers to prayer too.

Throughout 2023, I also had the privilege of preaching and leading across a number of our rural parishes, experiencing first-hand the warmth and kindness of these communities. I was particularly struck by the energy, commitment and vision as I met with a group of lay leaders and head teachers from some of our rural parishes in the Bassetlaw and Bawtry deanery. Though their churches were in vacancy, lay leaders from several churches had initiated new partnerships with their local schools , and the increasing number of young people in some villages hearing the good news of Christ and connecting with after school groups led by these teams was truly inspiring. It highlighted afresh the engagement of and possibilities for rural mission, and the need to continue to explore how we might best develop local lay leadership and support closer relationships with respective local schools.

During Petertide 2023, the sense of joy and celebration at the service for the Ordination of Deacons in Southwell Minister was tremendous. Fifteen candidates who had grown up as far away as Australia, Nigeria and Hong Kong, and as close to home as Nottingham and Worksop, had each individually heard and been obedient to God’s gracious call to ordained ministry and are now serving across the Diocese of Southwell and Nottingham. The service of Licensing for our Licensed Lay Ministers was also powerful and deeply moving, as we affirmed specific callings to serve in youth and children’s work alongside the role of Reader. It is wonderful to see whom God is calling to join us as we trust in his unfailing provision for the journey ahead.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHAIRMAN’S FOREWORD (continued) For the year ended 31 December 2023

As I give thanks for all the ways in which God continues to bless us, I am of course mindful that there are also challenges before us. We are continually aware of the need to focus on developing the gifts of those who can take on key roles of leadership and responsibility in our churches, especially with church wardens, treasurers and PCC members. There are also the ongoing financial resource challenges. The 2024 budget includes a deficit of £600k; whilst this reflects the necessary investment required for further growth, it is clearly not a sustainable position for the longer term if we are to continue our firm commitment not to reduce stipendiary numbers. It is hugely encouraging to see how the majority of parishes remain highly committed to meeting Parish Share alongside funding other aspects of their local ministry.

I remain immensely grateful for all that our parishes continue to do as we partner in sharing the gospel, for your prayers, and for your generous, and in some places sacrificial, giving. It is my prayer for each of us that as we step into this new season of vision and growth, we will indeed see the living hope of Christ flowing outwards to transform every part of our diocese.

With every blessing

The Rt Revd Paul Williams Bishop of Southwell and Nottingham

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT

For the year ended 31 December 2023

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 2023. 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 2023

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 providing facilities for public worship, pastoral care and spiritual, moral and intellectual development, both for its members and for anyone who wishes to benefit from what the Church offers; and promoting Christian values and service by members of the Church in and to their communities, to the benefit of individuals and society as a whole.

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:

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 2023

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 an 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 began communicating the refreshed vision towards the end of 2023 and intends to launch it fully in early 2024.

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.

OBJECTIVE FOR THE 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

2023 has been a year of fresh vision, growth and transformation across our Diocese.

Vision

During the year we finalised the refresh of the diocesan strategic vision and mission, through a prayerful process of discernment and consultation across the Diocese. This renewed mission and calling is now summarised as 'Growing Disciples of Christ with Compassion, Confidence and Courage ’and is paired with a compelling vision of ‘Living Hope for the city, towns and villages of Nottinghamshire and beyond’. To deliver on this vision and mission, 7 key areas of focus have been identified as Inspiring Worship, Reaching Younger, Enhancing Diversity, Growing Leaders, Enabling Commitment, Encouraging Generosity, and Nurturing Prayer. This will be shared across the Diocese in Spring 2024 through a series of events and resources and will help to inspire and inform our work over the coming years.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued) For the year ended 31 December 2023

Growth

We are now journeying with over 50 parishes through intentional, focused work that has been accelerated and resourced through Strategic Development Funding (SDF). We are grateful to the national church for the support they have provided through four SDF bids to help reverse the downward trend in church attendance and revitalise churches throughout the Diocese. Through SDF4, there have been 5 youth hubs (all workers appointed), 10 Children and Family flagship churches (5 existing / 5 new – all workers appointed) and a further 25 churches in receipt of funding with the majority appointing Children and Family and Youth workers. This has helped to reach 203 new youth against a target of 125, and 315 new children against a target of 250 by end of 2023. We have also seen an encouraging increase in the number of children, families and youth ministry volunteers, with 175 across our Diocese engaging with these activities.

SDF3 has specifically funded several new initiatives, including revitalising 4 churches that have since seen a total increase of 276 in attendance across services, with 10 additional New Worshipping Communities (NWC) created. As part of this funding, 12 Churches have also accessed the NWC Fund which has helped to establish ‘Connect' initiatives in local schools, new youth and family services and also a Spanish speaking congregation in the city centre. Capacity building posts funding has also enabled 10 new roles to be developed to support particular areas of ministry and leadership across our churches, including several where services had ceased.

Alongside growth at a local level, the Discipleship and Ministry team have continued to train and develop lay and ordained ministers. This includes 14 new Licensed Lay Ministers (LLM) in 2023, (adding to a total of 49 under the new scheme) as well as the ordination of 15 deacons.

The internship scheme continues to operate as a key leadership development pipeline. This year saw 18 first year interns at 12 churches across the Diocese, with 7 of them progressing to either the year 2 programme or church ministry roles in our Diocese. In July 2023, 4 people completed the first iteration of the year 2 programme, of whom 3 are now in church ministry roles. It continues to be an exciting time of growth for young leaders in our Diocese.

Transformation

The Diocese Days of Prayer have continued through the year, providing opportunity for prayer commitment and reflection across the Diocese. These have taken place monthly on the second Thursday and have each concluded at Southwell Minster for Evensong and a light supper at Bishop’s Manor, followed by contemporary worship in the State Chamber. These prayer days have helped to model the importance of prayer in the life of the Diocese.

As part of our environmental goals and objectives, our Diocesan Environment Officer (DEO) has furthered works with parishes throughout 2023. This has helped parishes develop an Action Plan (which was approved by Diocesan Synod in October 2023) to work towards the national Church of England target of being net zero by 2030. 106 churches are now registered as Eco Churches with A Rocha UK with 11 holding silver status and 43 bronze. Work continues within the Property Team to improve the energy efficiency of clergy housing following the Energy Performance Certificate (EPC) review of clergy property in 2023.

The Planned Giving Team has assisted more than 50 churches over the past year with generous giving through the provision of digital giving machines. This has been enabled, through funding from the national church, and has helped set the Diocese on course to reach its six-monthly target from June-December 2023 of £50,000.

Our social transformation partnerships have also continued into this year with Citizens UK, Refugee Roots and Transforming Notts Together (TNT). The aim of these partnerships is to equip and support for local churches as their members seek to grow in practical discipleship, through grief cafes, befriending, art classes, signposting, women’s support, and English conversation classes. These continue to provide key points of connection and transformation across our communities.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

2023 saw the restructuring of the Safeguarding team following Past Cases Review 2, with time now allocated for the Assistant Diocesan Safeguarding Advisor (ADSA) to build on the resources for those who have lived experience of trauma. The restructure has also increased time for parish support, with a new part time post for a parish support officer. Alongside this, the team have purchased two software packages for parishes to help record and evidence their compliance to the national standards in safeguarding. The team have also joined National Casework Management System so that all records are now stored consistently.

The diocesan Education Team has continued to provide their blend of professional, pastoral, and spiritual support to our 73 church schools reaching over 20,000 children and adults as well as supporting a range of leaders of RE, headteachers, school chaplains and governors. During the year, it has run a wide range of training and conferences and has continued to work with our five church Multi Academy Trusts (MATs). There has been a focus on teaching young people how to lead worship. This dovetails with a strong emphasis on empowering young people to lead as courageous advocates. This year saw the beginning of a new, inspirational type of conference, called ‘Listen Up’, where all the speakers and worship leaders are young people – no adult speakers allowed.

A reconstituted Diocesan Board of Education (DBE) began its work in January 2023. One of the priorities is to support a greater alignment between the Diocesan Vision and the amazing potential that is nurtured in our schools. This includes the creation of stronger discipleship pathways between church and school.

To support these areas of transformation and development, our digital Learning Hub has continued to expand and now provides courses and resources in discipleship, safeguarding, education and PCC/treasury. The platform now has a total of 1,719 account users.

FUTURE PLANS

In 2024 the refreshed diocesan Vision & Strategy will be launched widely and embedded in parishes throughout the year. This will be achieved through a refreshed communication plan, which will have a particular focus on sharing and celebrating stories of growing disciples from across the Diocese.

To help accelerate and resource the refreshed vision, the Diocese is planning to submit a significant Diocesan Investment Programme (DIP) application to the new Strategic Mission and Ministry Investment Board (SMMIB). This Board has been set up to enable the strategic priorities and the bold outcomes of the Church of England ’s Vision and Strategy for the 2020s. We believe that following our experience and learnings in recent years, we are well placed to apply for significant funding and strategic support. The result of this application will help resource and impact the Diocese over the coming years.

In keeping with the new 7 areas of focus from the refreshed vision, generous giving will continue to be a key aspect of development, with the second phase of the rollout of Free Digital Giving devices, supported by the National Church. The appointment in 2023 of our Digital Giving Advisor will mean we continue to assist all parishes in ensuring their online giving options are fit for purpose.

We will continue to work towards cutting our carbon footprint and promote Eco Church to further our understanding of caring for creation as central to whole life discipleship. The Diocesan Advisory Committee (DAC) will continue its important work to maintain and develop our churches to meet their missional priorities. We aspire to achieve Eco- Diocese Silver Award but this is dependent upon the number of individual churches registered under this programme.

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 2023

KEY PERFORMANCE INDICATORS

The Board regards its key performance indicators as follows:

2023
2022		 2023
2022		 2023
2022
Percentage
of
parish
share received
80.1%
84.4%
Average rate of return on
investments		 2.59% 2.51%

FINANCIAL PERFORMANCE

The main income to the Board is from parishes giving Parish Share. 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.

----- Start of picture text -----
INCOME % of 2023 2022
Total £000 £000
Parish Share 42 5,497 5,534
Archbishops’ 22 2,894 2,315
Council
Fees 2.41 316 317
Investment 9.4 1,261 1,087
income
----- End of picture text -----

The Trustees acknowledge with thanks the annual distribution from Benefact Trust. The other grants received from Archbishops’ Council during 2023 are £1,029,000 Strategic Development Fund monies, which is match funded by the Board and £1,271,000 Lowest Income Communities funding to support mission in our most deprived parishes.

REVIEW OF THE BALANCE SHEET

The Trustees consider that the balance sheet, together with details in notes 22 and 24, 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 £89,885,000 (2022: £87,255,000 as restated) 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 £32.2 million (2022: £32.5 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 22 the Board holds and administers a large number of restricted and endowment funds. As at 31 December 2023 restricted funds totalled £9.29m (2022: £8.44m as restated) and endowment funds totalled £64.6m (2022: £62.8m as restated).

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 22. At 31 December 2023 total designated reserves were £9.2m (2022: £9.2m).

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

Free reserves

The Board of Finance has considerable responsibilities including the remuneration of approx. 123 stipendiary clergy, the employment of over 60 full or part time staff and the upkeep of around 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 2023, the Board of Finance’s free reserves were £10.0m (2022: £9.7 million). The trustees consider that with the continued uncertainty around the economic situation together with the changes in the way that Dioceses are resourced from Church Commissioners, and the continuing pressure on parish share, the increased holding of free reserves is prudent.

SUBSIDIARIES

The subsidiary SNDBF Solar Limited has been closed and any assets hived up to the Southwell and Nottingham Board of Finance. There are now no subsidiaries and therefore consolidation reporting will not be required moving forward.

The Board is empowered by its Memorandum of Association not to invest monies immediately.

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.

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.

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.

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

STRUCTURE AND GOVERNANCE

Southwell and Nottingham is one of 42 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.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

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 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 5 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

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.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

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. Council are also the members of 2 statutory committees:

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, 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.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

REMUNERATION OF KEY PERSONNEL

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.

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.

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:

considered ‘high’. These areas and the associated mitigation strategies are detailed in the table below: considered ‘high’. These areas and the associated mitigation strategies are detailed in the table below: 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 thepast orpresent.

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.

FUNDRAISING

The Board of Finance does not carry out significant public fundraising activities and did not receive any complaints relating to fundraising during the year.

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SOUTHWELL & NOTTINGHAM DIOCESAN BOARD OF FINANCE

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

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 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

Signer ID: 05L8MRADJU... The Right Revd Paul Williams Chairman Date: 01/05/2024 GMT

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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 2023, which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

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.

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

Auditor responsibilities for the audit of the financial statements

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

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

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

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

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

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

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

A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

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.

Signer ID: CRZCVPKXXZ...

BHP LLP

Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date: 02/05/2024 GMT

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Income and
endowments from:
Donations
3
Charitable activities
4
Other activities
5
Investments
6
Other income
7
Total income and
endowments
Expenditure on:
Raising funds
8
Charitable activities
9,10
Clergy pension scheme
movement
Total expenditure
Net income before
gains/(losses) on
investments
Net gains/(losses) on
investments
15,16
Net income
Transfers between funds
22
Net movement in funds
before other
recognised
gains/(losses)
Other recognised
gains/(losses):
Actuarial (losses)/gains
on defined benefit
pension schemes
28
Non-controlling interest
Net movement in funds		 Unrestricted
funds
2023
£000
7,499
814
663
785
18
9,779
451
9,645
-
10,096
(317)
413
96
221
317
(56)
-
261		 Restricted
funds
2023
£000
1,029
34
-
476
-
1,539
97
1,206
-
1,303
236
599
835
(221)
614
-
-
614		 Endowment
funds
2023
£000
-
-
-
-
800
800
-
-
-
-
800
955
1,755
-
1,755
-
-
1,755		 Total
funds
2023
£000
8,528
848
663
1,261
818
12,118
548
10,851
-
11,399
719
1,967
2,686
-
2,686
(56)
-
2,630		 Total
funds
2022
£000
8,002
812
554
1,087
1,303
11,758
455
10,261
(93)
10,623
1,135
(283)
852
-
852
1,357
(3)
2,206

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Reconciliation of funds:
Total funds brought
forward as previously
stated
Prior year adjustment
Total funds brought
forward as restated
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2023
£000
15,977
-
15,977
261
16,238		 Restricted
funds
2023
£000
8,441
-
8,441
614
9,055		 Endowment
funds
2023
£000
62,837
-
62,837
1,755
64,592		 Total
funds
2023
£000
87,255
-
87,255
2,630
89,885		 Total
funds
2022
£000
84,238
811
85,049
2,206
87,255

The Consolidated Statement of Financial Activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2023

Note
Fixed assets
Tangible assets
14
Investments
16
Investment property
15
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension asset
Defined benefit pension scheme asset
28
Total net assets
Charity funds
Endowment funds
22
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Total unrestricted funds
22
Total funds		 1,024
3,135
4,159
(1,790)
9,226
7,012		 2023
£000
36,146
30,321
21,154
87,621
2,369
89,990
(105)
89,885
-
89,885
64,592
9,055
16,238
89,885		 2,551
4,188
6,739
(2,104)
9,226
6,751		 As restated
2022
£000
36,458
25,437
20,833
82,728
4,635
87,363
(108)
87,255
-
87,255
62,837
8,441
15,977
87,255

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Signer ID: 05L8MRADJU... The Bishop of Southwell and Nottingham Director Date: 01/05/2024 GMT

Signer ID: SCXT5LS1PL...

Canon M Arlington Director

02/05/2024 GMT

The notes on pages 27 to 65 form part of these financial statements.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2023

Note
Fixed assets
Tangible assets
14
Investments
16
Investment property
15
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension asset
Defined benefit pension scheme asset
28
Total net assets
Charity funds
Endowment funds
Restricted funds
Unrestricted funds
Designated funds
General funds
Unrestricted funds
Total unrestricted funds
Total funds		 1,024
3,135
4,159
(1,790)
9,226
6,779
16,005		 2023
£000
36,146
30,321
21,154
87,621
2,369
89,990
(105)
89,885
-
89,885
64,592
9,288
16,005
89,885		 2,763
4,188
6,951
(2,228)
9,226
6,751
15,977		 As restated
2022
£000
36,311
25,437
20,833
82,581
4,723
87,304
(108)
87,196
-
87,196
62,778
8,441
15,977
87,196

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Signer ID: SCXT5LS1PL... Signer ID: 05L8MRADJU... The Bishop of Southwell and Nottingham Canon M Arlington Director Director Date: 01/05/2024 GMT 02/05/2024 GMT

The notes on pages 27 to 65 form part of these financial statements.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Cash flows from operating activities
Net cash used in operating activities
25
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments and investment property
Purchase of investments
Proceeds on disposal of subsidiary
Cash transferred on disposal of subsidiary
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Repayments of borrowing
Interest paid
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
26		 2023
£000
(107)
1,261
1,081
-
5,155
(9,003)
-
-
(1,506)
(41)
(9)
(50)
(1,663)
6,276
4,613		 As restated
2022
£000
(134)
1,087
2,974
(271)
9,050
(9,984)
120
(246)
2,730
-
(9)
(9)
2,587
3,689
6,276

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1. General information

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 consolidate the results of the Company and its subsidiary, 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.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Southwell and Nottingham Diocesan Board of Finance meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

2.2 Going concern

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.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

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.

Investment income is recognised at the time it is receivable. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 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 made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

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.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Garden equipment - 20% straight line
Wind turbine - 4% straight line
Solar panels - 5% straight line
Motor vehicles - 25% straight line
Fixtures and fittings - 10% straight line
Other office equipment - 20% straight line
Computer equipment - 33% straight line

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.

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.

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.

One value linked loan house was sold during the current year, leaving two houses remaining.

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Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2. Accounting policies (continued)

2.6 Investments

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.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

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

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.10 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.

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Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. Accounting policies (continued)

2.11 Pensions

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 28). The pension costs charged to expenditure 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.

2.12 Fund accounting

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.

2.13 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.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2. Accounting policies (continued)

2.14 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 depend 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 28, will impact the carrying value of the pension liability. In the current year the Staff Retirement Benefit Scheme pension is in a surplus position which has not been recognised in the financial statements as material doubt exists around the ability to recover the asset.

A key estimation uncertainty 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.

3. Income from donations and legacies

Deanery share
Archbishops' Council
Other donations
Total 2022		 Unrestricted
funds
2023
£000
5,497
1,865
137
7,499
7,341		 Restricted
funds
2023
£000
-
1,029
-
1,029
661		 Total
funds
2023
£000
5,497
2,894
137
8,528
8,002		 Total
funds
2022
£000
5,534
2,315
153
8,002

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Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Deanery share

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

Newark Archdeaconry
Nottingham Archdeaconry
Voluntary contribution
Shortfall
Receipts for previous years
Total 2022		 Unrestricted
funds
2023
£000
2,960
3,902
101
(1,468)
5,495
2
5,497
5,534		 Total
funds
2023
£000
2,960
3,902
101
(1,468)
5,495
-
5,497
5,534		 Total
funds
2022
£000
2,828
3,723
76
(1,101)
5,526
8
5,534

Current year deanery share receipts represent 80.1% of the total apportioned (2022 - 84.4%). 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

Selective allocation
Pooling of ordinands candidates' costs
Strategic Ministry Funding
Strategic Development Funding
Total 2022		 Unrestricted
funds
2023
£000
1,271
171
423
-
1,865
1,654		 Restricted
funds
2023
£000
-
-
-
1,029
1,029
661		 Total
funds
2023
£000
1,271
171
423
1,029
2,894
2,315		 Total
funds
2022
£000
1,263
204
187
661
2,315

Page 33

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Other donations

Benefact Trust Grant
Other grants
Total 2022		 Unrestricted
funds
2023
£000
129
8
137
153		 Total
funds
2023
£000
129
8
137
153		 Total
funds
2022
£000
147
6
153

4. Income from charitable activities

Statutory fees
Contributions to sector and other chaplaincy posts
Contributions to costs of lay staff posts
Church Commissioners'
Loan interest receivable
Other contributions and income
Total 2022		 Unrestricted
funds
2023
£000
316
95
169
20
4
210
814
776		 Restricted
funds
2023
£000
-
-
-
-
-
34
34
36		 Total
funds
2023
£000
316
95
169
20
4
244
848
812		 Total
funds
2022
£000
317
88
126
39
8
234
812

Page 34

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

5. Income from other activities

Housing income
Total 2022		 Unrestricted
funds
2023
£000
663
554		 Total
funds
2023
£000
663
554		 Total
funds
2022
£000
554

6. Investment income

Rents and income from mineral rights receivable
Dividends and interest receivable
Total 2022		 Unrestricted
funds
2023
£000
486
299
785
777		 Restricted
funds
2023
£000
28
448
476
310		 Total
funds
2023
£000
514
747
1,261
1,087		 Total
funds
2022
£000
580
507
1,087

7. Other income

Surplus on disposals
Subsidiary income
Total 2022		 Unrestricted
funds
2023
£000
18
-
18
731		 Endowment
funds
2023
£000
800
-
800
572		 Total
funds
2023
£000
818
-
818
1,303		 Total
funds
2022
£000
1,007
296
1,303

Page 35

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

8. Expenditure on raising funds

Glebe agent's fee
Other land agent commission and expenditure
Investment management charges
Total 2022		 Unrestricted
funds
2023
£000
135
305
11
451
401		 Restricted
funds
2023
£000
-
-
97
97
54		 Total
funds
2023
£000
135
305
108
548
455		 Total
funds
2022
£000
149
209
97
455

9. Charitable activities

Summary by fund type

Contributions to Archbishops' Council
Resourcing Ministry and Mission
Support for parish ministry
Expenditure on church schools and diocesan
projects
Other expenditure
Total 2022		 Unrestricted
funds
2023
£000
449
7,336
1,838
-
22
9,645
9,158		 Restricted
funds
2023
£000
-
1,179
18
9
-
1,206
1,103		 Total
2023
£000
449
8,515
1,856
9
22
10,851
10,261		 Total
2022
£000
449
8,040
1,402
139
231
10,261

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

9. Analysis of expenditure on charitable activities

Unrestricted
funds		 Restricted
funds		 Total
funds		 Total
funds
2023 2023 2023 2022
£000 £000 £000 £000
Contributions to Archbishop's Council
Trainingfor Ministry 212 - 212 212
National Church Responsibilities 153 - 153 157
Retired clergyhousingcosts 84 - 84 80
449 - 449 449
Resourcing Ministry and Mission
Stipends,salaries & national insurance 4,331 1,179 5,510 5,433
Pension contributions 1,199 - 1,199 1,200
Housingcosts 1,518 - 1,518 1,195
Removal,resettlement & other expenses 288 - 288 212
7,336 1,179 8,515 8,040
Support forparish ministry 1,838 18 1,856 1,402
Expenditure on church schools - 9 9 139
1,838 27 1,865 1,541
Other expenditure
Audit fees - audit 18 - 18 18
Audit fees - non audit 4 - 4 4
Subsidiaryexpenses - - - 209
22 - 22 231
Total 2023 9,645 1,206 10,851 10,261
Total 2022 9,158 1,103 10,261

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

10. Analysis of expenditure by activities

Contributions to Archbishops'
Council
Resourcing Ministry and Mission
Support for parish ministry
Expenditure on church schools
and diocesan projects
Other expenditure
Total 2022		 Direct costs
2023
£000
-
8,395
1,567
9
4
9,975
9,307		 Grants spend
(note 11)
2023
£000
449
120
288
-
-
857
931		 Support costs
2023
£000
-
-
1
-
18
19
23		 Total
funds
2023
£000
449
8,515
1,856
9
22
10,851
10,261		 Total
funds
2022
£000
449
8,040
1,402
139
231
10,261

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 can be summarised as follows:

Resourcing ministry and mission 81.62% (2022: 80.82%) Church Schools 13.87% (2022: 15.08%) Diocesan Projects 2.16% (2022: 1.97%) Governance 2.34% (2022: 2.13%)

Page 38

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

11. Analysis of grants made

Number Individuals Institutions Total
funds		 Total
funds
2023 2023 2023 2023 2022
£000 £000 £000 £000
Contributions to Archbishops'
Council		 1 - 449 449 449
Refugee Roots 1 - 20 20 20
Clergy 38 120 - 120 74
Ordinands in training 19 146 - 146 246
TransformingNotts Together 1 - 15 15 20
Growing Disciples/ New
WorshippingCommunityGrants		 31 - 106 106 120
PerryGift 1 1 - 1 2
Total 2023 92 267 590 857 931
Total 2022 274 322 609 931

12. Auditor's remuneration

2023 2022
£000 £000
Fees payable to the charity's auditor for the audit of the charity's annual accounts 18 18
Fees payable to the charity's auditor in respect of:
All non-audit services not included above 12 8

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13. Staff costs

Salaries and stipends
National insurance contributions
Church of England Funded Pension scheme costs
Defined benefit pension scheme costs
Defined contribution schemes cost		 2023
£000
1,733
172
-
109
146
2,160		 2022
£000
1,664
165
59
52
134
2,074

The Church of England Funded Pension scheme included 8 employees (2022: 8 employees). The defined benefit scheme included 1 employee (2022: 1 employee) and the defined contribution schemes included 53 employees (2022: 53 employees).

Total staff costs total £6,792k for the year. This includes the staff costs above of £2,160k, stipends as shown below of £4,428k, capacity building posts of £150k and pension finance costs of £54k.

In note 9 these total staff costs are split between stipends, salaries and national insurance of £5,510k, pension contributions of £1,199k, and lay staff costs of £83k within housing costs.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13. Staff costs

The average number of persons employed by the charity during the year was as follows:

Administration
Safeguarding
Financial management and Stewardship
Property
Discipleship and Ministry
Education
Communications
Recharged to other entities		 Group
2023
No.
13
10
7
3
12
9
1
5
60		 Group
2022
No.
14
12
6
5
13
11
1
4
66

The average headcount expressed as full-time equivalents was:

Administration
Safeguarding
Financial management and Stewardship
Property
Discipleship and Ministry
Education
Communications
Recharged to other entities		 Group
2023
No.
9.36
4.81
6.46
2.66
9.79
7.32
1.00
3.65
45.05		 Group
2022
No.
10.34
4.89
5.66
3.24
12.39
7.57
1.00
4.30
49.39

Page 41

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

Pension payments of £15,014 (2022: £14,493) 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 2023 they were:

Diocesan Chief Executive and Company Secretary Mr M Cooper
Director of Discipleship and Ministry Revd Canon Dr R Kellett
Diocesan Director of Education Mr N Frith
Director of Communications vacant
Director of Finance Mrs R Bowes (resigned 24 February 2023)
Director of Finance Mrs K Proctor (appointed 1 August 2023)
HR Manager Mrs J Brothwell
Programme Manager Mr N Peake
Diocesan Safeguarding Advisor Mr J Hodgson

Remuneration, including employers' NI and employers' pension contributions for these 8 (2022: 6) employees amounted to £469,123 (2022: £484,992 as restated).

Directors' emoluments

No Director received any remuneration for services as Director. 9 Directors received travelling and out of pocket expenses, totalling £7,458 (2022: 8 Directors received £7,910) in respect of General Synod duties, duties as archdeacon or area dean, and other duties as Directors.

Page 42

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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 (to August 2023) 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 123 (2022: 117) stipendiary clergy as officeholders holding parochial or diocesan appointments in the diocese, and the costs were as follows:

Stipends
National insurance contributions and apprenticeship levy
Pension costs - current year		 2023
£000
3,242
290
896
4,428		 2022
£000
3,112
283
910
4,305

The annual rate of stipend, funded by the Board, paid to Archdeacons was in the range £39,000 - £40,000 (2022: £36,100 - £38,000) and other clergy who were Trustees were paid in the range £28,000 - £29,000 (2022: £25,770 - £27,519).

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

14. Tangible fixed assets

Group

Freehold houses
(see below)
£000
Cost
At 1 January 2023
32,478
Disposals
(281)
At 31 December 2023
32,197
Depreciation
At 1 January 2023
-
Charge for the year
-
At 31 December 2023
-
Net book value
At 31 December 2023
32,197
At 31 December 2022
32,478		 Diocesan Office
& caretakers'
bungalow
£000
3,809
-
3,809
27
1
28
3,781
3,782		 Wind Turbine &
solar panels
£000
226
-
226
79
-
79
147
147		 Office
equipment
£000
532
-
532
481
30
511
21
51		 Total
£000
37,045
(281)
36,764
587
31
618
36,146
36,458

Page 44

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

14. Tangible fixed assets (continued)

Charity

Freehold houses
(see below)
£000
Cost or valuation
At 1 January 2023
32,478
Transfers intra group
-
Disposals
(281)
At 31 December 2023
32,197
Depreciation
At 1 January 2023
-
Charge for the year
-
Transfers intra group
-
At 31 December 2023
-
Net book value
At 31 December 2023
32,197
At 31 December 2022
32,478		 Diocesan Office
& caretakers'
bungalow
£000
3,809
-
-
3,809
27
1
-
28
3,781
3,782		 Plant and
machinery
£000
-
226
-
226
-
-
79
79
147
-		 Office
equipment
£000
532
-
-
532
481
30
-
511
21
51		 Total
£000
36,819
226
(281)
36,764
508
31
79
618
36,146
36,311

Page 45

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Tangible fixed assets - freehold houses

2023 2023 2022 2022
Cost or
deemed cost		 Number of
houses		 Cost or
deemed cost		 Number of
houses
£000 £000
Endowment funds
Benefit houses fund
Parsonage houses		 17,620 124 17,864 125
Glebe funds
Housing of team vicars, curates & others
Unrestricted(designated) funds		 7,594 41 7,594 41
Corporate property
CityCentre Resource Church		 1,498 1 1,498 1
Housingof senior clergy,curates & others 5,530 20 5,382 19
Houses subject to value-linked loans
Housing of curates and others		 102 2 140 3
32,344 188 32,478 189

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, who 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 £102,000 (2022: £139,000). Of the total land and buildings at 31 December 2023, £14.3m are valued at cost (2022: £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.

Page 46

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

15. Investment property

Group and Charity

Valuation
At 1 January 2023 (as restated)
Disposals
Surplus on revaluation
At 31 December 2023		 Freehold
investment
property
£000
20,833
(105)
426
21,154

Due to their nature the historic cost of investment properties is not known. Included in investment properties are restricted funds of £nil (2022: £nil), endowment funds of £18,740k (2022: £18,419k) and unrestricted funds of £2,414k (2022: £2,414k).

16. Fixed asset investments

Listed
investments		 Unlisted
investments		 Total 2023 As restated
Total 2022
£000 £000 £000 £000
Cost or valuation
At 1 January (as restated) 22,201 1,148 23,349 23,911
Additions 9,003 - 9,003 9,419
Disposals (5,050) - (5,050) (8,251)
Revaluations 1,634 (93) 1,541 (1,730)
At 31 December 27,788 1,055 28,843 23,349
Investment cash 1,478 - 1,478 2,088

Included in the fixed asset investments are restricted funds of £9,053k (2022: £8,115k), endowment funds of £12,399k (2022: £11,119k) and unrestricted funds of £8,869k (2022: £6,203k).

Page 47

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

17. Subsidiaries

The Diocesan Board of Finance had two trading subsidiaries in the prior year, operating in the renewable enery sector.

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.

SNDBF Solar Limited, which is incorporated in the United Kingdom (company number 09792284), was incorporated on 23 September 2015 and 100% of the shares were acquired on the same date. On 1 January 2023 the assets and liabilities of SNDBF Solar Limited were hived up into Southwell and Nottingham Diocesan Board of Finance leaving no remaining subsidiaries as at 31 December 2023.

18. Debtors

Due after more than one year
Amounts owed by group undertakings
Loans to parishes
Due within one year
Trade debtors
Rent debtors
Loans to parishes
Other debtors
Prepayments and accrued income
Current year Parish share		 Group
2023
£000
-
47
47
108
121
14
238
403
93
1,024		 Group
2022
£000
-
65
65
153
121
25
1,945
168
74
2,551		 Charity
2023
£000
-
47
47
108
121
14
238
403
93
1,024		 Charity
2022
£000
226
65
291
153
121
25
1,931
168
74
2,763

Page 48

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

19. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Mission development fund grants		 Group
2023
£000
275
-
54
85
1,376
-
1,790		 Group
2022
£000
94
-
-
203
1,776
31
2,104		 Charity
2023
£000
275
-
54
85
1,376
-
1,790		 Charity
2022
£000
94
146
-
181
1,776
31
2,228

20. Creditors: Amounts falling due after more than one year

Loan with the Central Board of Finance - interest
free
Church Commissioners value-linked loans
Southwell & Nottingham Board of Education		 Group
2023
£000
7
98
-
105		 Group
2022
£000
8
99
1
108		 Charity
2023
£000
7
98
-
105		 Charity
2022
£000
8
99
1
108

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.

Page 49

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Included within the above are amounts falling due as follows:

Between one and two years
Loan with the Central Board of Finance - interest
free
Southwell & Nottingham Board of Education
Over five years
Church Commissioners value-linked loans		 Group
2023
£000
7
-
98		 Group
2022
£000
8
1
99		 Charity
2023
£000
7
-
98		 Charity
2022
£000
8
1
99

21. Prior year adjustments

There has been a prior year adjustment to reflect the true value of investment properties which dates back a number of years. The impact of the prior year adjustment is to increase investment property valuation brought forward by £811,000, increase general unrestricted funds by £877,000 and reduce endowment funds by £66,000 as at 31 December 2021 and 31 December 2022. There is no impact on the reported surplus in the year to 31 December 2022.

There has also been a prior year adjustment to move two investment portfolios totalling £4,211,000 to listed investments from unlisted investments. There is no impact on the reported surplus or net assets at 31 December 2022.

The prior year cash flow statement has been restated to include cash held in investments of £2,088,000 within cash and cash equivalents. There is no impact to the funds of the charity or the result for the year.

Page 50

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

22. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated funds
Accumulated
Capital
Mission
Development
fund
General funds
General fund
Pension reserve
Total Unrestricted
funds
Endowment funds
Benefice houses
fund -
expendable
Stipends fund
capital -
expendable
Parsonages capital
- expendable
Stipends -
permanent
Bramcote
Bungalows -
permanent		 As restated
Balance at 1
January 2023
£000
9,118
108
9,226
6,695
56
6,751
15,977
18,430
39,799
166
1,722
970		 Income
£000
-
-
-
9,779
-
9,779
9,779
-
800
-
-
-		 Expenditure
£000
-
-
-
(10,096)
-
(10,096)
(10,096)
-
-
-
-
-		 Transfers
in/out
£000
-
-
-
221
-
221
221
-
-
-
-
-		 Gains/
(Losses)
£000
-
-
-
413
(56)
357
357
-
639
23
210
136		 Balance at 31
December 2023
£000
9,118
108
9,226
7,012
-
7,012
16,238
18,430
41,238
189
1,932
1,106

Page 51

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

22. Statement of funds (continued)

Statement of funds - current year (continued)

Haseldine Homes -
permanent
Perry Gift Fund -
permanent
Other permanent
endowment
funds		 Balance at 1
January 2023
£000
565
778
407
62,837		 Income
£000
-
-
-
800		 Expenditure
£000
-
-
-
-		 Transfers
in/out
£000
-
-
-
-		 Gains/
(Losses)
£000
112
109
(274)
955		 Balance at 31
December 2023
£000
677
887
133
64,592

Page 52

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

22. Statement of funds (continued)

261
-
1,029
249
1,539
12,118
Income
£000
-
-
-
-		 (60)
-
(1,029)
(214)
(1,303)
(11,399)
As restated
Expenditure
£000
-
-
-
-		 (221)
-
-
-
(221)
-
Transfers
in/out
£000
-
-
(1,386)
(1,386)		 519
-
-
80
599
1,911
Gains/
(Losses)
£000
620
-
-
620		 8,228
195
-
632
9,055
89,885
As restated
Balance at
31 December
2022
£000
9,118
108
-
9,226

Page 53

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

22.
Statement of funds (continued)
General funds
General fund
6,318
Non-controlling
interest
(45)
Pension reserve
(1,386)
4,887
Total Unrestricted
funds
14,879
Endowment funds
Benefice houses
fund -
expendable
17,858
Stipends fund
capital -
expendable
37,882
Parsonages capital
- expendable
187
Clergy pension
fund deficit
(221)
Stipends -
permanent
1,688
Bramcote
Bungalows -
permanent
1,094
Haseldine Homes -
permanent
631
Perry Gift Fund -
permanent
877
Other permanent
endowment
funds
477
60,473		 9,916
263
-
10,179
10,179
572
-
-
-
-
-
-
-
-
572		 (9,387)
(257)
85
(9,559)
(9,559)
-
-
-
93
-
-
-
-
-
93		 253
42
-
295
(1,091)
-
964
-
127
-
-
-
-
-
1,091		 (405)
(3)
1,357
949
1,569
-
953
(21)
-
34
(124)
(66)
(99)
(69)
608		 6,695
-
56
6,751
15,977
18,430
39,799
166
(1)
1,722
970
565
778
408
62,837

Page 54

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

22. Statement of funds (continued)

Restricted funds
Diocesan Board of
Education
Pastoral Account
Strategic
Development
Funding
Other restricted
income funds
Total of funds		 8,997
221
-
479
9,697
85,049		 219
-
661
127
1,007
11,758		 (386)
(26)
(661)
(84)
(1,157)
(10,623)		 -
-
-
-
-
-		 (1,101)
-
-
(5)
(1,106)
1,071		 7,729
195
-
517
8,441
87,255

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 (Glebe funds)

represents the proceeds of the sale of glebe, parsonages transferred by Pastoral Scheme and gifts to the fund. The funds generate income for the payment of stipends and can be invested or applied to the capital purposes permitted by the Endowments and Globe 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 deficit details contained in note 28

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.

Page 55

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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.

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 programme and Education 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 aside for Fund 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.

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.

Page 56

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Mission Development Amounts in addition to the restricted fund set aside for Mission Development. Fund

Closed Pension Fund amounts transferred from the general fund to mect future deficit contributions. Deficit Funding

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

Transfers between funds

No transfers have been made in the year.

23. Summary of funds

Summary of funds - current year

Designated funds
General funds
Endowment funds
Restricted funds		 As restated
Balance at 1
January 2023
£000
9,226
6,751
62,837
8,441
87,255		 Income
£000
-
9,779
800
1,539
12,118		 Expenditure
£000
-
(10,096)
-
(1,303)
(11,399)		 Transfers
in/out
£000
-
221
-
(221)
-		 Gains/
(Losses)
£000
-
357
955
599
1,911		 Balance at 31
December 2023
£000
9,226
7,012
64,592
9,055
89,885

Summary of funds - prior year

Designated funds
General funds
Endowment funds
Restricted funds		 As restated
Balance at
1 January
2022
£000
9,992
4,887
60,473
9,697
85,049		 Income
£000
-
10,179
572
1,007
11,758		 As restated
Expenditure
£000
-
(9,559)
93
(1,157)
(10,623)		 Transfers
in/out
£000
(1,386)
295
1,091
-
-		 Gains/
(Losses)
£000
620
949
608
(1,106)
1,071		 As restated
Balance at 31
December
2022
£000
9,226
6,751
62,837
8,441
87,255

Page 57

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Investment property
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2023
£000
3,802
8,869
2,414
47
2,323
(1,112)
(105)
16,238		 Restricted
funds
2023
£000
-
9,053
-
-
680
(678)
-
9,055		 Endowment
funds
2023
£000
32,344
12,399
18,740
-
1,109
-
-
64,592		 Total
funds
2023
£000
36,146
30,321
21,154
47
4,112
(1,790)
(105)
89,885

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Investment property
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds (as
restated)
2022
£000
3,834
6,203
2,480
65
4,181
(678)
(108)
15,977		 Restricted
funds (as
restated)
2022
£000
-
8,115
-
-
1,504
(1,178)
-
8,441		 Endowment
funds (as
restated)
2022
£000
32,624
11,119
18,353
-
989
(248)
-
62,837		 Total
funds
2022
£000
36,458
25,437
20,833
65
6,674
(2,104)
(108)
87,255

Page 58

Document ID: ab052c79b965957a5b4c56758b2d29aa7d361bafec0f81300328032735d3d4de

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Profit on the sale of fixed assets
Gain on disposal of subsidiary
Decrease in debtors
Increase/(decrease) in creditors
Defined benefit scheme finance cost
Defined benefit scheme cost less contributions payable
Clergy pension scheme adjustment
Interest paid
Net cash used in operating activities		 Group
2023
£000
2,686
31
(1,967)
(1,261)
(800)
-
1,471
(276)
-
-
-
9
(107)		 Group
2022
£000
852
107
1,252
(1,087)
(1,006)
(969)
200
814
24
(109)
(221)
9
(134)

26. Analysis of cash and cash equivalents

Cash in hand
Investment cash (note 16)
Total cash and cash equivalents		 Group
2023
£000
3,135
1,478
4,613		 Group
As restated
2022
£000
4,188
2,088
6,276

Page 59

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

27. Analysis of changes in net debt

Cash at bank and in hand
Cash equivalents
Debt due after 1 year		 As restated
At 1 January
2023
£000
4,188
2,088
(107)
6,169		 Cash flows
£000
(1,053)
(610)
2
(1,661)		 At 31
December
2023
£000
3,135
1,478
(105)
4,508

28. Pension commitments

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 Pension Schemes 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.

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.

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

Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022. 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

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

28. Pension commitments (continued)

2023, since the Scheme was in surplus.

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.

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 (2022: £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.

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 At 31
December December
2023 2022
% %
Discount rate 4.60 4.90
Future pension increases 3.10 3.20
Inflation assumption (RPI) 3.20 3.30
Inflation assumption (CPI) 2.40 2.30
At 31 At 31
December December
2023 2022
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.4 22.7
- at 65 for a male aged 45 now 22.7 24.4
- for a female aged 65 now 23.6 24.7
- at 65 for a female aged 45 now 25.1 26.5

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

28. Pension commitments (continued)

The group's share of the assets in the scheme was:

Equities
Bonds
Cash
Total fair value of assets		 At 31
December
2023
£000
-
3,697
47
3,744		 At 31
December
2022
£000
2,513
837
-
3,350

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

Interest income
Interest cost
Total amount recognised in the Consolidated Statement of Financial Activities		 2023
£000
-
-
-		 2022
£000
91
(67)
24

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Actuarial losses/(gains)
Actuarial losses/(gains) not recognised
Benefits paid
Closing defined benefit obligation		 2023
£000
(3,294)
56
(223)
159
(3,302)

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

28. Pension commitments (continued)

Movements in the fair value of the group's share of scheme assets were as follows:

Opening fair value of scheme assets
Actuarial gains/(losses) not recognised
Actuarial gains/(losses)
Contributions by employer
Benefits paid
Closing fair value of scheme assets
A reconciliation of the balance sheet liability is set out below
Closing defined benefit obligation
Closing fair value of scheme assets
Surplus not recognised		 2023
£000
(3,302)
3,744
(442)
-		 2023
£000
3,350
444
-
109
(159)
3,744
2022
£000
(3,294)
3,350
-
56

In the prior year the small surplus of £56,000 was recognised in other debtors. In the current year the large surplus of £442,000 has not been recognised in the financial statements as a material doubt arises over the ability of the charity to recover these funds.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

29. Related party transactions

Transforming Notts Together

The Board of Finance are the founding members of "Transforming Notts Together", which is a charitable company limited by guarantee. TNT paid the Board £105,289 (2022: £108,253) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2023 was £1,424 (2022: £30,556).

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/academics and as a member of each of the Church of England Academy Trusts also to challenge and to hold governors to account in this regard. The Charity is also Intended to operate as a sponsor or co-sponsor of Church of England Academies in the Diocese and elsewhere as required. The Trustees are lan Griffiths, Revd Canon Mark Tanner, Canon John Loughton, Martin Cooper and Nigel Frith. 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 Canon Philip Blinston, Roger Periam, John Hunter, Hilary Craik, Chris Moodie, Angela Pae, Canon John Loughton, and Nigel Frith. The Multi Academy Trust paid the Board £45,840 (2022: £26,304) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2023 was £11,117 (2022: £7,514).

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.

Subsidiaries

SNDBF Solar Limited has been hived up at the start of the year, so there is no balance owing at the year end to the charity (2022: debtor of £145,859).

30. Contingent liabilities

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.

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.

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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 £123,000 on behalf of 4 schools (2022- £16,016 on behalf of 2 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.

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 2023, the timing and receipt of these funds cannot be measured with any material 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, and were 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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