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2024-12-31-accounts

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

Introduction 3-6
1.1 Chairman’s Foreword
1.2 Administrative Details
Legal Objects 7-9
Strategic Report 10-20
3.1 Vision and Strategic Objectives
3.2 Activities & Achievements
3.3 Future Plans
3.4 Financial Review
3.5 Principal Risks
Structure, Governance & Management 21-23
Disclosure of Information to the Auditor 24
Independent Auditor’s Report 25-28
Statement of Financial Activities 29-30
Balance Sheet 31-32
Cash Flow Statement 33
Notes to the Financial Statements 34-72

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

INTRODUCTION

1.1 CHAIRMAN’S FOREWORD

I write the Forward to the Accounts for 2024 as I approach the ten-year mark since I became Bishop of Southwell and Nottingham. I am deeply thankful for the faithfulness of God in all our endeavours as a diocese, in every parish, school and other settings, in which we have shared the adventure of following Jesus and sharing his love with others.

For me, the clearest and most inspiring expression of what it means to be the church today is found in the Living Hope Stories that have been released each week since the start of this year – you can find them on the diocesan website and our other social media. I would urge you to listen to these real-life stories of people encountering Jesus for themselves. They are just a few of many such stories of faith from churches in every part of the diocese and people of all ages and backgrounds. This is why the diocese exists and what every local church is for. Nothing else in this report matters all that much apart from the fruit of the work of the Holy Spirit drawing people to know God and discover how greatly they are loved by him, to receive his forgiveness and gift of life, now and eternally.

We are observing that there seems to be a perceptible shift in the spiritual hunger of people in our wider culture – that culture for all its benefits cannot satisfy the soul or provide living hope. Its attempts to do so are ultimately su�ocating to the soul and destroy the human spirit. Only God can truly set people free and inspire the kind of vision for our world that is enduringly hopeful. The strategic plan for the diocese in Growing Disciples of Christ with Compassion, Confidence and Courage is about seeking to orientate all our activity and best endeavours on sharing in this work of God. The seven areas of focus are those things we believe will help us to align our energies and resources towards the single priority of Growing Disciples.

Each focus area is important and can make a real di�erence to the health and vitality of the local church, whether in the city, villages or towns of Nottinghamshire. However, the first and last of those (Inspiring Worship and Nurturing Prayer) are the spiritual engines that compel and enable healthy, sustainable growth, personally and together. It is in these two areas we have been doing some vital learning in the past few years, though the story of faith in this diocese can only be understood in terms of the power of prayer and inspiring of worship. Listening to stories from the church in other parts of the nation and world, there is a clear sense that God is purifying and preparing his church for new opportunities and service ahead – many are feeling a fresh calling to pray for spiritual revival of faith.

I am aware that it can be discouraging when you sense that new things are happening elsewhere and spiritual renewal seems far o� in your setting and the personal challenges of life are overwhelming. That is why we need each other. It is why a diocese, at its best, can create a genuine sense of partnership in the gospel as we support one another, and continue waiting on the Lord in prayer for the blessing he promises to bring. Serving together we can remain enduringly hopeful, with joy and thankfulness for what God is doing. Each one of the Living Hope Stories belong to the whole church as a reminder of the power and love of the Holy Spirit touching people’s lives today. Wherever you work and worship do not lose heart.

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There are certain to be challenges ahead. No blessing goes uncontested. This will rightly compel us to deeper dependence on God, but also to deeper repentance in the calling to be a holy church. Continuing to improve all aspects of Safeguarding therefore remains central to everything we do. Serious past and more recent failings continue to come to light. We should be thankful they are coming into the light to be addressed, though they are painful and deeply humbling for the Church of England. The response to, and care for, the needs of the victims and survivors of church abuse is how we determine the extent to which we have learned from the failings and continue to press forward with improvements in the present. Building healthy relational and spiritual cultures across the church remains essential, which we are giving particular attention to in the work of the diocese.

Thank you for your generosity in every way you serve God in his church at this time, laden potential for renewal and growth. Thank you especially to the many of you who have worshipped and prayed and worked so hard in the life of our diocese leading us to this moment. Welcome to those of you who are very new to faith and the mission of the church in this diocese.

“We always thank God for all of you…We remember before our God and Father your work produced by faith, your labour prompted by love, and your endurance inspired by hope in our Lord Jesus Christ.” (1 Thessalonians 1:2-3)

With every blessing

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1.2 ADMINSTRATIVE DETAILS
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The Rt Revd Paul Williams Bishop of Southwell and No�ngham

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1.2 ADMINSTRATIVE DETAILS

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 P 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 The Venerable The Archdeacon of Nottingham The Chair of the House of Clergy of the Diocesan Synod (Revd S Hustwayte) The Chair of the House of Laity of the Diocesan Synod (Mr M Wilson) The Chair of the Finance Committee (Canon M Arlington)

ELECTED BY THE SOUTHWELL & NOTTINGHAM DIOCESAN SYNOD

CLERGY

Newark Archdeaconry (2) Revd Z Burton Revd J Hyatt (from 01.09.24)

CLERGY

LAITY Newark Archdeaconry (4) Professor P Harris (b) (from 25.11.24) Mr R Brand Mrs T Pearse (from 01.09.24) Dr P Lake (from 25.11.24)

Nottingham Archdeaconry (3)

Revd D Bocchetti (from 01.09.24) Revd Dr J Mole (from 01.09.24) Revd Dr M Wreford (from 01.09.24)

Co-opted

Revd Canon M Tanner (b) (appointed 29.09.24)

LAITY

Nottingham Archdeaconry (6)

Mr M Bolton Mr T Bramall (from 01.09.24) Mr R Cleave (a) Mr P Fisher (from 01.09.24) Miss S Waterston Mrs J Robins (née Gray)

(a) Member of the Finance Commi�ee

(b) Member of the Board of Educa�on

The following trustees resigned on 31.08.24 Canon S Sylvester, Mrs C Shaw, Mr C Barber and Mr R Gutteridge.

PRINCIPAL OFFICERS AND ADVISORS

Diocesan Chief Execu�ve & Company Secretary Mr M L Cooper Diocesan Registrar, Bishop's Legal Secretary & Legal Adviser to the Board of Finance Mrs A J Redgate LLB

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JUBILEE HOUSE LEADERSHIP TEAM

Director of Discipleship & Ministry Diocesan Director of Education Director of Communications Director of Finance Programme Manager HR Manager (resigned 31.12.24) Diocesan Safeguarding Advisor

BANKERS

Lloyds Bank No�ngham

SOLICITORS

Rotheras, No�ngham

MINING, MINERALS, ENGINEERING INSURERS & ENVIRONMENTAL CONSULTANTS Mineral Surveying Associates

Revd James Halstead Mr N Frith Vacant Mrs K Proctor Mr N Peake Mrs J Brothwell Mr J Hodgson

INVESTMENT MANAGERS

CCLA Central Board of Finance of the Church of England Rathbones Investment Management Ltd Ruffer LL

CHARTERED SURVEYORS

Jas. Martin & Co, Lincoln Tanners, Nottingham

AUDITOR

BHP LLP 2 Rutland Park Sheffield S10 2PD

INSURERS

Ecclesiastical Insurance Group

REGISTERED ADDRESS

Jubilee House Westgate No�ngham NG25 0JH

CHARITY NUMBER

249359

COMPANY NUMBER

00034165

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

LEGAL OBJECTS

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 2024. 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.

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 e�ort 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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PUBLIC BENEFIT

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 e�ectively, 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 o�ers; 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 a�airs 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.

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:

information included on the Board’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may di�er from legislation in other jurisdictions

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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 sta� 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.

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STRATEGIC REPORT

3.1 VISION AND STRATEGIC OBJECTIVES

We have a vision of ‘Living Hope for the city, towns and villages of Nottinghamshire and beyond’. We recognise that our world is in desperate need of hope. In a post-Covid age and cost of living crisis, with our country’s structures and systems under pressure and the increasing mental health challenges facing young people, the cry for hope is clear. A hope that brings transformation and new life, healing and wholeness. We believe that hope is found in Jesus Christ, which the church is uniquely placed to share in every community.

This is lived out through our calling and mission for ‘Growing Disciples of Christ with Compassion, Confidence and Courage’.

Compassion : To meet the world’s deepest needs with Jesus’ love To root our life and faith in Jesus Confidence: Courage: To share Jesus with all our hearts

7 Areas of Focus for mission and ministry in parishes and across the life of our Diocese. We hope these will act as reference and review points and drive investment and prioritisation of time, energy and resources:

Inspiring Worship: Because coming together to meet with God should be the most captivating time of anyone’s week. Reaching Younger : Because Jesus is the surest foundation for life.

Enhancing Diversity: Because each person matters to Jesus and is precious in his sight. Growing Leaders : Because the harvest is plentiful.

Enabling Commitment : Because there is nothing better anyone can do with their life than become a follower of Jesus.

Encouraging Generosity: Because we serve a God of abundance and every good gift comes from him.

Nurturing Prayer: Because prayer changes everything.

The Board resources the vision, mission and areas of focus through the support of 250 parishes and networks across the Diocese. 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 our 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.

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3.2 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR

2024 has been an exciting year of growth and renewed vision for our Diocese. In March 2024 we shared our refreshed vision for 2030 across three vision evenings with over 400 clergy, churchwardens and other leaders in attendance. This was then shared further through engaging videos, printed booklets (translated into 6 languages) and bespoke church invitation cards, as well as an innovative Vision ‘Minecraft World’ for young people to explore the diocesan vision in a digital space.

As part of our refreshed vision, our primary activities and achievements are viewed through the lens of our 7 Focus Areas.

INSPIRING WORSHIP

Our average worship attendance has continued to increase with an 8% increase in all ages of church attendance between 2022-23, including a 14% rise in children and youth attendance. This is an encouraging sign of growth across our churches in a range of diverse contexts and settings. The Strategic Development Funding (SDF) we’ve received in previous years has helped to accelerate this in places. For example, St Swithun’s in Retford (part of SDF-3) have seen growth from 15 people gathered to over 100 in their church, including a significant portion of children/youth. Similarly, St Saviours in the Meadows (which is supported in part by SDF-4) as part of a Church Revitalisation, have seen their Sunday attendance almost double in the past year (35 to 69).

In the summer we launched Flourish, our ‘Church in Secondary School’ pilot, which is part of a national initiative to develop 40 new worshipping communities across the country. This follows successful experience and work in primary schools with ‘Connect’ – an after-school ministry aimed at children and families. Our Flourish Pilots are currently in development at the Minster School in Southwell, Magnus C of E Academy in Newark, Queen Elizabeth’s Academy and Samworth Academy in Mansfield and will provide new opportunities for gathered Worship.

Our Growing Disciples fund continued to support parishes grow in their mission and ministry. This year 60 applications received approximately £117,000 to support in a range of contexts from inner-city, to market towns and villages.

REACHING YOUNGER

We have strategically aimed to make a step change in provision for children, families and youth ministries across the diocese in 2024, supported by our SDF funding. Encouragingly we have seen 715 new younger disciples (3-18 yrs old) against a target of 675, of which 482 are children (3-11 yrs) and 233 are youth (12-18 yrs). This has been supported by working intentionally with 40 churches across the Diocese in this area, with now 15 centres of strength and 21 churches showing a positive increase in children and youth attendance over this past year. 19 churches have journeyed through our year-long ‘Inspire’ programme (which brings total of attendees to 30). This course provides teaching and training, as well as space to network and share good practice across centres. Through this intentional work we now have over 300 children, families and youth ministry volunteers across the Diocese.

The Diocesan Education Team continues to strongly support the 73 church schools in our Diocese and the 20,000 children and young people they represent. They o�er every child or young

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person a positive encounter with Christ, coupled with an invitation to ask life's biggest questions, search for truth and decide where they will place their faith. In support of these amazing schools, the Education Team continues to o�er professional, personal and spiritual support to school leaders and governing bodies. The team have provided a variety of training opportunities, including the annual church school leaders' conference with over 100 attendees, which focused on the theme 'rooted in love' this year.

ENHANCING DIVERSITY

Our Ordinands and Licensed Lay Ministers represented our most diverse cohort to date in ethnicity, ecclesiology and cultural background. The 10 LLM candidates from 9 churches represented inner-city Nottingham, urban-estates, market towns, post-industrial towns, and rural locations to the north and west of our diocese. Although there is still a long way to go, our leadership is beginning to represent further the wonderful diversity we see across the life of our parishes.

We were pleased to celebrate in the summer the 30[th] anniversary of the ordination of women to the priesthood in the summer. This included an afternoon gathering of female clergy from across the Diocese which was followed by a celebratory Evensong in the Minster. This was a great opportunity to celebrate the significant contribution female leaders have brought to the Diocese.

Alongside this, our communications team have helped resource and support churches in providing translated vision documents. Churches were asked through an online form which languages would be helpful for translation, and the top 6 language requests have been developed releasing documents in: Farsi, Spanish, Polish, Ukrainian, Arabic and Cantonese. This is part of a wider aim to make all our vision and resource material more accessible for those who have English as a second language.

GROWING LEADERS

Through our Petertide Ordinations, we were pleased to welcome a diverse cohort of 7 deacons and 14 priests who now lead and serve across our city, towns and villages. As mentioned above, we also welcomed 10 Licensed Lay Ministers (LLMs) adding to a total of 59 LLMs under the new scheme across the Diocese. We are also pleased that our largest group yet are currently ‘in training’ with many planned to be licensed in 2025.

leadership development as part of the Younger Leadership College. In September 2024, 28 young adults from across 10 churches started the new year of our intern programme with 19 in our year 1 Apprentice Track and 9 in our year 2 Leadership Track. This is our largest group of interns to date and shows the growing desire for leadership training and spiritual formation amongst our young adults.

Two of our key events for leadership development are the Bishop’s Study Day and Diocesan Conference. These were a particular highlight of the year - hearing not only from guest speakers (on wellbeing in ministry and leadership) and both our bishops but also taking time to reflect on ‘Inspiring Worship’, ‘Growing Leaders’ and ‘Enabling Commitment’ through input and stories from parishes across the whole spectrum of churches and contexts in our diocese. These events run alongside our ongoing support for clergy through the bishop’s fireside groups and learning communities that operate across our deaneries.

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ENABLING COMMITMENT

2024 saw us pilot the new DISCIPLE course in Ollerton and Stapleford with over 35 churches represented in attendance. This course is an adaptation of the popular RealLIFE programme aligned to our new diocesan vision. We also another saw another cohort complete our ‘Leading in Evangelism’ learning community, shaping faith-sharing cultures in churches across our di�erent contexts.

accompanied by encouraging testimonies of faith from all walks of life, alongside new commitments to faith through children and adult baptisms.

a focus to rediscover testimony as a key tool to church growth. These will be shared and launched at the start of 2025 with the intention of reaching many with the good news of Christ’s Living Hope, with an expectation of 100,000 views on the channel in year 1.

Our chaplaincy teams continue to minister in a diverse array of settings including Prison, Healthcare, Emergency Services, Workplace, Higher Education, Sport and Rural. In one of the prisons there have been 9 baptisms over the past year while one of part time hospital chaplains have been able to support over 700 contacts including patients, sta� and visitors (More details of these can be read in our chaplaincy impact report). Our social transformation partnerships have also continued into this year providing opportunity for outreach and connection with Citizens UK, Refugee Roots and Transforming Notts Together (TNT). The aim of these partnerships is to equip and support local churches as their members seek to grow in practical discipleship.

ENCOURAGING GENEROSITY

across Parishes, as we set out a 10 year ‘Journey of Generosity’.

This was developed through the support of the Parish Share Review Group (meetings for this group first began in 2023) who produced a helpful report summarising the current position of Parish Share and the strategic plans to help address the deficit between Share asked and Share received. This has been summarised through 13 recommendations which have begun to be implemented.

Improvements include four new cost categories for greater clarity in ministry spending, 10-year trajectories for parishes to also improve clarity and enable planning/growth, and the formation of a Parish Share Team. To communicate these changes, ‘Deanery Roadshows’ were held through September-November and were well attended, facilitating helpful discussion. Encouragingly there was a 4.6% increase in Parish Share giving from 2023.

This year we had the second phase of the rollout of Free Digital Giving devices, supported by the National Church. We also launched the Parish Giving Scheme with encouraging signs of impact. Our pilot benefice saw 50% of current givers agreeing to inflation increases each year, with approx 10% being new donors and 25% of previous donors having decided to increase their monthly amount. This will be open to all parishes in 2025.

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NURTURING PRAYER

At the core of our activities for 2024 has been our renewed commitment to prayer. This has continued through our diocesan days of prayer which have o�ered opportunity for people across the diocese to gather in the State Chamber for an evening of prayer and worship, as well as joining with other prayer activities on the same day such as a Nottingham City Prayer and Fuel Youth Worship and Prayer.

pray along a 120km route from the north to the south of our Diocese, stopping at 30 churches along the way over 6 days. We were joined by over 30 runners and 100 people to pray across the various locations, with a united heart for Christ’s Living Hope to flow in the city, towns and villages of Nottinghamshire and beyond.

Our communications team also produced a number of resources to support and encourage prayer throughout the year, including Prayer Cards during the Euro 2024 football tournament, encouraging prayer for countries across Europe. This was shared widely across the UK and was featured on Premier Christian Radio.

SAFEGUARDING

Underpinning all our 7 areas of focus is the vital role of safeguarding. We are committed to the safeguarding of everyone in our parishes and communities across the diocese – within a culture where safeguarding is everybody’s responsibility.

Throughout 2024, we have been supporting parishes to input evidence of compliance to the National Safeguarding Policies and practice guidance through the Parish Dashboards and the Safeguarding Hubs. We now have over 80% of parishes actively using the Dashboards. This includes Dashboard and Hub champions (Parish Safeguarding O�icers who have implemented both) so that they can support local parishes after the initial induction provided by the diocese.

A particular highlight from the year was the Annual Safeguarding conference which was held at Christ Church Worksop in June. The focus of the conference was to introduce the National Safeguarding Standards, and the discussions on this have enabled us to develop a range of resources for parishes to record the evidence that they are meeting the five standards.

safeguarding team adjusted the duties in early 2024 of the caseworker and training manager to facilitate designated hours for parish support. They will be undertaking further review as the demand continued to rise throughout the year.

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3.3 FUTURE PLANS

CHURCH GROWTH PROGRAMME IMPLEMENTATION

During 2024, the central support team worked with parishes on a comprehensive proposal to the new Strategic Mission and Ministry Investment Board (SMMIB). This proposal was approved in November 2024 and enables funding of £33.16 million – £12.1 million of this is subject to further approvals . The implementation of these strategic plans will form a key part in the acceleration of our vision and mission from 2025 onwards.

This funding over the next 10 years will seek to provide the training and deployment of over 40 frontline lay and ordained leaders as well as children and youth workers. A major pilot project will be launched to renew groups of rural churches in the diocese, drawing on lessons from e�ective outreach in urban Nottingham and existing projects in rural Nottinghamshire and the Connect initiative of church in school. Additional mission resource will be available to any parish church in the diocese through enhanced Growing Disciples grants, as well as context-specific grants for Resourcing Churches and Church Revitalisations.

FURTHER STEP CHANGES IN OUR AREAS OF FOCUS

In the year ahead we hope to continue our work in all 7 Areas of Focus, but there are 3 that we hope to make a particular step-change in during 2025.

Enabling Commitment – we shared an invitation at the end of 2024 for parishes to run a ‘Nurture Course’ (a short course for people to explore faith, for example, Alpha) in the new year. Our prayerful aspiration is to see 50 new courses running in the Spring of 2025. We hope this will lead to a number of baptisms and confirmations in the year ahead, and that some of these stories will then be shared as part of our ‘Living Hope Stories’ series.

Following this, in Summer we also hope to develop a further step change in Growing Leaders. We plan to do this with a particular focus on our internship and lay vocation streams and utilise more information evenings and training events. We are also planning to share more stories of ordination and vocational pathways, especially of those who have journeyed through our internship programme.

Thirdly Nurturing Prayer . We have seen throughout this year how central prayer is to all our activity, and the impact it has on our other Areas of Focus. For 2025 we will continue to organise our monthly Diocesan Day of Prayer, a second prayer run (from the East to the West) and explore more innovative ways to engage all ages and backgrounds in prayer.

SAFEGUARDING

In January 2026, the diocese and the Cathedral will be measured against the National Standards by a company called INEQE. They have been commissioned to carry out audits of all 42 dioceses between 2024 and 2027. In preparation for this, our Safeguarding team will be running a series of workshops throughout the year alongside further refresher training.

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3.4 FINANCIAL REVIEW

2024 INCOME SUMMARY

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.

Income for 2024 amounted to £12.9M (2023: £12.1M), This income is spread over 4 income streams:

Parish Share – £5.7M

Following the Parish Share Review, Parish Share contributions are calculated for each individual parish. The formation of a Parish Share Team (including Chief Executive, Archdeacons and

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Other Income
Parish Share 23.2%
44.2%
Church
Commissioners
22.5%
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Finance Director) enable decisions to be made in line with the refreshed diocesan vision and strategy.

Church Commissioners – £2.9M

The Church Commissioners pay for the bishops’ stipends, their o�ice and working costs, most cathedral stipends and grants to cathedrals. These costs are NOT included in the Diocesan budget. The Church Commissioners provide direct support to dioceses through a number of funding streams.

Returns on Investments - £1.3M

The Diocese earns income from its historic investments. Investment is split between property in the form of agricultural land and commercial property and direct financial investments in bonds and equities. Annually we receive rents and dividend income.

Other Income – £3M

The trust acknowledge with thanks grants from third parties such as C of E Ministry Experience Scheme (CEMES) who provide an annual grant towards the costs of the Intern Programme and the Benefact trust. We also receive income from strategic partnerships with schools, activitybased income from parochial fees.

2024 2023
Percentage of parish share
received		 92.1% 80.1%
Average rate of return on
investments		 3.78% 3.95%

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2024 OUTGOING SUMMARY

Expenditure for 2024 amounted to £11.7 M (2023: £11.4 M). This expenditure is spread over 4 cost categories:

Direct Ministry – £4.8M

Incumbents are appointed to parishes to lead mission and ministry. The remuneration of clergy includes the cost of stipend, housing (including council tax and water rates), pension and National Insurance.

Direct Ministry Support – £2.7M

----- Start of picture text -----
23.1%
18.8%
41.0%
17.1%
----- End of picture text -----

Across the Diocese we work together to nurture and support local churches as we seek to Grow Disciples and reach our local communities with the Living Hope of Jesus. To this we rely on the skills and expertise of colleagues in safeguarding, clergy wellbeing, youth and children’s ministry advisors, archdeacons’ team, deanery administrators, parish giving advisors, school/workplace chaplains and support for parishes in vacancy through sequestration.

Developing Ministry – £2.2M

We are focused on growing both the present and future generation of ministry leaders. We invest in discerning both lay and clergy vocations, lay and ordinand training and development, curate stipends, housing (including council tax and water rates), pension and National Insurance and the cost of the intern programme.

Statutory & Governance – £2.0M

As for all charitable companies, we need to comply with statutory requirements. We support local Parochial Church Councils (PCCs) to fulfil their statutory obligations through the Diocesan Advisory Committee (DAC), Registry, Finance Team and Communications Team. We are also required to contribute to the costs of National Church support functions.

BALANCE SHEET

The Trustees consider that the balance sheet, together with details in notes 22 and 23, 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 £92,847,000 (2023: £89,885,000 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 £32.4 million (2023: £32.2 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.

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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 2024 restricted funds totalled £12.2m (2023: £9.8m as restated) and endowment funds totalled £64.1m (2023: £63.6m 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 21. At 31 December 2024 total designated reserves were £9.2m (2023: £9.2m).

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 sta� 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 2024, the Board of Finance’s free reserves were £4.3m (2023: £3.9m). 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.

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.

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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.

FUNDRAISING

receive any complaints relating to fundraising during the year.

3.5 PRINCIPAL RISKS

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 key risks, which may impact on the charitable company, include:

  1. Failure to deliver Diocesan vision and strategy – the risk is this will cause an overall decline in congregations and reductions in financial giving, limited ongoing mission and ministry due to

Existing Mitigation

Existing Mitigation

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limit collaborative thinking and practice, as well causing reputational damage for the Diocese and parishes.

Existing Mitigation

Existing Mitigation

Existing Mitigation

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STRUCTURE, GOVERANCE & MANAGEMENT

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.

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 Su�ragan 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.churchofengland.org. The financial transactions of these bodies do not form part of these statements.

an o�ice 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

This 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 a�airs 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.

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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-o�icio 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.

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 o�icio members (the Diocesan and Su�ragan 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

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

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Diocesan Chief Executive and their team of six departmental directors for the delivery of the dayto-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 & Risk Committee which advises the Finance Committee and thereby Bishop’s Council, in the discharge of the Trustees’ responsibilities for accounting policy, internal control, financial reporting and risk management.

REMUNERATION OF KEY PERSONNEL

A job evaluation scheme is used to determine the salary grades of employed posts. O�ice holders are paid either the Diocesan stipend or that advised by the Archbishops’ Council acting as the Central Stipends Authority.

GOING CONCERN

that, despite the uncertainty of the current economic climate, the Board has su�icient 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.

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DISCLOSURE OF INFORMATION TO THE AUDITOR

We, the Directors of the company who held o�ice at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

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: 22/05/2025 GMT

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

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

Opinion

We have audited the financial statements of Southwell and Nottingham Diocesan Board of Finance (the 'charity') for the year ended 31 December 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

Other information

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

We have nothing to report in this regard.

Opinion 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which 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 charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

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

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

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

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

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

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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Signer ID: IPFNE7JEI6... Laura Masheder (Senior statutory auditor) for and on behalf of

BHP LLP

Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date: 02/06/2025 GMT

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Income and
endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income and
endowments
Expenditure on:
Raising funds
8
Charitable activities
9,10
Total expenditure
Net
(expenditure)/income
before net gains on
investments
Net gains on investments
15,16
Net movement in funds
before other
recognised
gains/(losses)
Other recognised
gains/(losses):
Actuarial gains/(losses)
on defined benefit
pension schemes
27
Pension surplus not
recognised
27
Net movement in funds		 Unrestricted
funds
2024
£000
7,794
796
687
353
205
9,835
147
9,764
9,911
(76)
286
210
6
(92)
124		 Restricted
funds
2024
£000
981
33
-
911
1,123
3,048
274
1,470
1,744
1,304
1,077
2,381
-
-
2,381		 Endowment
funds
2024
£000
-
-
-
-
-
-
-
-
-
-
457
457
-
-
457		 Total
funds
2024
£000
8,775
829
687
1,264
1,328
12,883
421
11,234
11,655
1,228
1,820
3,048
6
(92)
2,962		 Total
funds
2023
£000
8,528
848
663
1,261
818
12,118
548
10,851
11,399
719
1,967
2,686
(56)
-
2,630

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SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Reconciliation of funds:
Total funds brought
forward (as restated)
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2024
£000
16,414
124
16,538		 Restricted
funds
2024
£000
9,836
2,381
12,217		 Endowment
funds
2024
£000
63,635
457
64,092		 Total
funds
2024
£000
89,885
2,962
92,847		 Total
funds
2023
£000
87,255
2,630
89,885

The 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

(A company limited by guarantee)

REGISTERED NUMBER: 00034165

BALANCE SHEET

AS AT 31 DECEMBER 2024

Note
Fixed assets
Tangible assets
14
Investments
16
Investment property
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
19
Net assets excluding pension asset
Defined benefit pension scheme asset
27
Total net assets		 958
3,865
4,823
(1,426)		 2024
£000
36,322
31,724
21,509
89,555
3,397
92,952
(105)
92,847
-
92,847		 1,024
3,135
4,159
(1,790)		 As restated
2023
£000
36,146
30,321
21,154
87,621
2,369
89,990
(105)
89,885
-
89,885

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Signer ID: 05L8MRADJU...

Signer ID: SCXT5LS1PL...

22/05/2025 GMT

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Cash flows from operating activities
Net cash used in operating activities
24
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
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Receipt of endowment
Net cash provided by/(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
25
The notes on pages 34 to 72 form part of these financial statements		 2024
£000
(1,399)
1,237
1,537
(707)
8,140
(8,813)
1,394
-
-
-
(5)
4,613
4,608		 2023
£000
(107)
1,261
1,081
-
5,155
(9,003)
(1,506)
(41)
(9)
(50)
(1,663)
6,276
4,613

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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 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.

2.2 Going concern

The Board have prepared forecasts of income and expenditure for the period to 31 December 2026 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

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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.

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.

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.

Page 35

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2. Accounting policies (continued)

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.

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
Solar panels - 5% straight line
Bungalow - 1% straight line
Motor vehicles - 25% straight line
Fixtures and fittings - 10% straight line
Other office equipment - 20% straight line
Computer equipment - 33% straight line
Caretaker bungalow - 1% 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.

Page 36

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation (continued)

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

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 Statement of financial activities as a finance cost.

2.10 Operating leases

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

Page 37

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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 27). 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.

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 rended 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.

Page 38

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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.

Pension scheme liability

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 27, 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.

Investment property valuations

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

Parish share
Archbishops' Council
Other donations
Total 2023		 Unrestricted
funds
2024
£000
5,746
1,883
165
7,794
7,499		 Restricted
funds
2024
£000
-
981
-
981
1,029		 Total
funds
2024
£000
5,746
2,864
165
8,775
8,528		 Total
funds
2023
£000
5,497
2,894
137
8,528

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

Page 39

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Parish Share

Newark Archdeaconry
Nottingham Archdeaconry
Bishop's Mission Orders		 Unrestricted
funds
2024
£000
2,297
3,299
150
5,746		 Total
funds
2024
£000
2,297
3,299
150
5,746		 Total
funds
2023
£000
2,262
3,133
102
5,497

Current year parish share receipts represent 92.46% of the total apportioned (2023 - 80.1%). The parish share calculation was reviewed during 2017 and transition provisions applied to the Deaneries which have a large disparity with the way parish share was previously calculated.

Archbishops' Council

Lowest income Communities LInC funding
Pooling of ordinands candidates' costs
Strategic Ministry Funding
Strategic Development Funding
Total 2023		 Unrestricted
funds
2024
£000
1,290
15
578
-
1,883
1,865		 Restricted
funds
2024
£000
-
-
-
981
981
1,029		 Total
funds
2024
£000
1,290
15
578
981
2,864
2,894		 Total
funds
2023
£000
1,271
171
423
1,029
2,894

Page 40

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Other donations

Benefact Trust Grant
Other grants
Total 2023		 Unrestricted
funds
2024
£000
111
54
165
137		 Total
funds
2024
£000
111
54
165
137		 Total
funds
2023
£000
129
8
137

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 2023		 Unrestricted
funds
2024
£000
292
90
162
-
2
250
796
814		 Restricted
funds
2024
£000
-
-
-
-
-
33
33
34		 Total
funds
2024
£000
292
90
162
-
2
283
829
848		 Total
funds
2023
£000
316
95
169
20
4
244
848

Page 41

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5. Income from other activities

Housing income
Total 2023		 Unrestricted
funds
2024
£000
687
663		 Total
funds
2024
£000
687
663		 Total
funds
2023
£000
663

6. Investment income

Rents and income from mineral rights receivable
Dividends and interest receivable
Pension finance income
Total 2023		 Unrestricted
funds
2024
£000
102
229
22
353
785		 Restricted
funds
2024
£000
442
469
-
911
476		 Total
funds
2024
£000
544
698
22
1,264
1,261		 Total
funds
2023
£000
514
747
-
1,261

Page 42

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

7. Other income

Surplus on disposal of property
Diocesan share of proceeds
Total 2023		 Unrestricted
funds
2024
£000
205
-
205
18		 Restricted
funds
2024
£000
784
339
1,123
-		 Endowment
funds
2024
£000
-
-
-
800		 Total
funds
2024
£000
989
339
1,328
818		 Total
funds
2023
£000
818
-
818

Diocesan share of proceeds relates to the diocese share of proceeds from properties not wholly owned by the diocese but where it is entitled to a share of any proceeds on disposal.

8. Expenditure on raising funds

Fundraising trading expenses

Glebe agent's fee
Other land agent commission and expenditure
Investment management charges
Total 2023		 Unrestricted
funds
2024
£000
55
65
27
147
451		 Restricted
funds
2024
£000
-
169
105
274
97		 Total
funds
2024
£000
55
234
132
421
548		 Total
funds
2023
£000
135
305
108
548

Page 43

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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 2023		 Unrestricted
funds
2024
£000
447
7,759
1,534
-
24
9,764
9,645		 Restricted
funds
2024
£000
-
1,144
284
42
-
1,470
1,206		 Total
2024
£000
447
8,903
1,818
42
24
11,234
10,851		 Total
2023
£000
449
8,515
1,856
9
22
10,851

Page 44

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9. Analysis of expenditure on charitable activities

Unrestricted
funds		 Restricted
funds		 Total
funds		 Total
funds
2024 2024 2024 2023
£000 £000 £000 £000
Contributions to Archbishop's Council
Trainingfor Ministry 211 - 211 212
National Church Responsibilities 148 - 148 153
Retired clergyhousingcosts 88 - 88 84
447 - 447 449
Resourcing Ministry and Mission
Stipends,salaries and national insurance 4,950 1,144 6,094 5,510
Pension contributions 1,171 - 1,171 1,199
Housingcosts 1,430 - 1,430 1,518
Removal,resettlement and other expenses 208 - 208 288
7,759 1,144 8,903 8,515
Support forparish ministry 1,534 284 1,818 1,856
Expenditure on church schools - 42 42 9
1,534 326 1,860 1,865
Other expenditure
Audit fees - audit 20 - 20 18
Audit fees - non audit 4 - 4 4
24 - 24 22
Total 2024 9,764 1,470 11,234 10,851
Total 2023 9,645 1,206 10,851

Page 45

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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 2023		 Direct costs
2024
£000
-
8,835
1,509
42
4
10,390
9,975		 Grants spend
(note 11)
2024
£000
447
68
308
-
-
823
857		 Support costs
2024
£000
-
-
1
-
20
21
19		 Total
funds
2024
£000
447
8,903
1,818
42
24
11,234
10,851		 Total
funds
2023
£000
449
8,515
1,856
9
22
10,851

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 72.03% (2023: 81.62%) Church Schools 19.02% (2023: 13.87%) Diocesan Projects 6.83% (2023: 2.16%) Governance 2.11% (2023: 2.34%)

Page 46

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11. Analysis of grants made Number Individuals Institutions Total
funds		 Total
funds
2024 2024 2024 2024 2023
£000 £000 £000 £000
Contributions to Archbishops'
Council		 1 - 447 447 449
Refugee Roots 1 - 15 15 20
Clergy 12 68 - 68 120
Ordinands in training 13 165 - 165 146
TransformingNotts Together 1 - 10 10 15
Growing Disciples/ New
WorshippingCommunityGrants		 60 - 117 117 106
PerryGift 1 1 - 1 1
Total 2024 89 234 589 823 857
Total 2023 92 267 590 857
12. Auditors' remuneration
2024 2023
£000 £000
Fees payable to the charity's auditor for the audit of the charity's annual accounts 20 18
Fees payable to the charity's auditor in respect of:
All non-audit services not included above 4 4

Page 47

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13. Staff costs

Salaries
National insurance contributions
Pension costs		 2024
£000
1,832
187
165
2,184		 2023
£000
1,733
172
255
2,160

The Church of England Funded Pension scheme included 7 employees (2023: 8 employees). The defined benefit scheme included no active employees (2023: 1 employee) and the defined contribution schemes included 56 employees (2023: 53 employees).

Total staff costs total £7,175k for the year. This includes the staff costs above of £2,184k, stipends as shown below of £4,828k and capacity building posts of £163k.

In note 9 these total staff costs are split between stipends, salaries and national insurance of £5,966k, pension contributions of £1,101k, and lay staff costs of £108k within housing costs.

The comparative pension costs includes contributions of £109,000 paid to the defined benefit pension scheme. Due to the materiality of the surplus in the scheme, in the current year contributions of £64,000 have been grossed up in the balance sheet, as fully disclosed in note 27. As such the pension schemes year on year are not directly comparable by the £109,000.

Page 48

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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
Project Management office
Parish Based Lay Minister
Recharged to other entities		 2024
No.
10
10
6
1
12
9
3
5
1
5
62		 2023
No.
12
10
7
3
12
9
1
1
-
5
60

The average headcount expressed as full-time equivalents was:

Administration
Safeguarding
Financial management and Stewardship
Property
Discipleship and Ministry
Education
Communications
Project Management office
Parish Based Lay Minister
Recharged to other entities		 2024
No.
8.60
5.31
5.46
1.71
9.99
7.25
2.60
5.00
1.00
4.35
51.27		 2023
No.
8.36
4.81
6.46
1.66
9.79
7.32
1.00
2.00
-
3.65
45.05

Page 49

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13. Staff costs (continued)

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

2024 2023
No. No.
In the band £60,001 - £70,000 - 1
In the band £70,001 - £80,000 2 -
In the band £80,001 - £90,000 1 1

Pension payments of £22,174 (2023: £15,014) 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 2024 they were:

Diocesan Chief Executive and Company Secretary Mr M Cooper
Director of Discipleship and Ministry Revd James Halstead
Diocesan Director of Education Mr N Frith
Director of Communications Vacant position
Director of Finance Mrs K Proctor
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 7 (2023: 8) employees amounted to £516,659 (2023: £469,123).

Directors' emoluments

No Director received any remuneration for services as Director. 11 Directors received travelling and out of pocket expenses, totalling £11,016 (2023: 9 Directors received £7,458) in respect of General Synod duties, duties as archdeacon or area dean, and other duties as Directors.

Page 50

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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 No
The Ven P Williams Yes Yes
The Revd S Hustwayte Yes Yes
The Revd Canon S D Silvester Yes Yes
The Revd P Shaw Yes Yes
The Revd Canon M Tanner Yes Yes
The Revd Z Burton Yes Yes
The Very Revd N Sullivan No No
Revd Canon Dr N Evans No No

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 124 (2023: 123) 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		 2024
£000
3,560
332
936
4,828		 2023
£000
3,242
290
896
4,428

The annual rate of stipend, funded by the Board, paid to Archdeacons was in the range £41,000 - £42,000 (2023: £39,000 - £40,000) and other clergy who were Trustees were paid in the range £30,000 - £31,000 (2023: £28,000 - £29,000).

Page 51

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14. Tangible fixed assets

Freehold houses
(see below)
£000
Cost or valuation
At 1 January 2024
32,197
Additions
703
Disposals
(515)
At 31 December 2024
32,385
Depreciation
At 1 January 2024
-
Charge for the year
-
On disposals
-
At 31 December 2024
-
Net book value
At 31 December 2024
32,385
At 31 December 2023
32,197		 Diocesan Office
& caretakers'
bungalow
£000
3,809
-
-
3,809
28
-
-
28
3,781
3,781		 Solar panels
£000
226
-
-
226
79
7
-
86
140
147		 Office
equipment
£000
532
4
(132)
404
511
7
(130)
388
16
21		 Total
£000
36,764
707
(647)
36,824
618
14
(130)
502
36,322
36,146

Page 52

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Tangible fixed assets - freehold houses

2024 2024 2023 2023
Cost or
deemed cost		 Number of
houses		 Cost or
deemed cost		 Number of
houses
£000 £000
Endowment funds
Benefit houses fund - Parsonage houses 18,104 124 17,620 124
Glebe funds
Housing of team vicars, curates & others
Unrestricted(designated) funds		 7,516 36 7,594 41
Corporate property
CityCentre Resource Church		 1,521 1 1,498 1
Housingof senior clergy,curates & others 5,290 25 5,530 20
Houses subject to value-linked loans
Housing of curates and others		 102 2 102 2
32,533 188 32,344 188

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 the Board's property agent, Mr G Davis, 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 (2023: £102,000). Of the total land and buildings at 31 December 2024, £14.7m are valued at cost (2023: £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 53

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15. Investment property

Valuation
At 1 January 2024
Disposals
Surplus on revaluation
At 31 December 2024		 Freehold
investment
property
£000
21,154
(102)
457
21,509

Due to their nature the historic cost of investment properties is not known. Included in investment properties are restricted funds of £nil (2023: £nil), endowment funds of £19,095k (2023: £18,740k) and unrestricted funds of £2,414k (2023: £2,414k).

16. Fixed asset investments

Listed
investments		 Unlisted
investments		 Total
2024		 Total
2023
£000 £000 £000 £000
Cost or valuation
At 1 January2024 27,782 1,061 28,843 23,349
Additions 8,813 - 8,813 9,003
Disposals (6,982) (1,056) (8,038) (5,050)
Revaluations 1,361 2 1,363 1,541
At 31 December 2024 30,974 7 30,981 28,843
Investment cash 743 - 743 1,478

Included in the fixed asset investments are restricted funds of £9,196k (2023: £9,053k), endowment funds of £11,662k (2023: £12,399k) and unrestricted funds of £10,866k (2023: £8,869k).

Page 54

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17. Debtors

Due after more than one year
Loans to parishes
Due within one year
Trade debtors
Rent debtors
Loans to parishes
Other debtors
Prepayments and accrued income
Parish share		 2024
£000
26
26
101
93
6
100
570
62
958		 2023
£000
47
47
108
121
14
238
403
93
1,024

18. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 January 2024
Resources deferred during the year
Amounts released from previous periods		 2024
£000
74
48
148
1,156
1,426
2024
£000
1,273
904
(1,273)
904		 2023
£000
275
54
85
1,376
1,790
2023
£000
1,689
1,273
(1,689)
1,273

Page 55

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Loan with the Central Board of Finance - interest free
Church Commissioners value-linked loans		 2024
£000
7
98
105		 2023
£000
7
98
105

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.

Included within the above are amounts falling due as follows:

Between one and two years
Loan with the Central Board of Finance - interest free
Over five years
Church Commissioners value-linked loans		 2024
£000
7
98		 2023
£000
7
98

20. Prior year adjustments

There has been a prior year adjustment to correct funds misallocations over many years which impacted the allocation of reserves as at 31 December 2022 and in the year to 31 December 2023. There was no impact to the net assets at 31 December 2022 or at 31 December 2023.

There has been a restatement of the balances at 31 December 2022 to increase endowment funds by £523,000, increase restricted funds by £2,622,000 and reduce general funds by £3,145,000. In the year to 31 December 2023 there has been a transfer between funds to move £1,479,000 out of endowment funds, £2,062,000 out of restricted funds and £3,542,000 into general funds, due to misallocation of funds over a period of years.

Page 56

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Accumulated Capital
Mission Development fund
General funds
General fund
Total Unrestricted funds
Endowment funds
Benefice Houses fund -
expendable
Stipends fund capital - expendable
Parsonages capital - expendable
Stipends - permanent
Bramcote Bungalows - permanent
Haseldine Houses - permanent
Perry Gift Fund - permanent
Other permanent endowment
funds		 Balance at 1
January 2024
£000
9,118
108
9,226
7,188
16,414
17,592
41,238
189
1,811
1,106
677
887
135
63,635		 Income
£000
-
-
-
9,835
9,835
-
-
-
-
-
-
-
-
-		 Expenditure
£000
-
-
-
(9,911)
(9,911)
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£000
-
-
-
200
200
-
457
-
-
-
-
-
-
457		 Balance at 31
December 2024
£000
9,118
108
9,226
7,312
16,538
17,592
41,695
189
1,811
1,106
677
887
135
64,092

Page 57

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21. Statement of funds (continued)

Restricted funds
Diocesan Board of Education
Pastoral Account
Strategic Development Funding
Benefice Houses restricted fund
Other restricted income funds
Total of funds		 Balance at 1
January 2024
£000
8,947
74
-
-
815
9,836
89,885		 Income
£000
340
123
981
595
1,009
3,048
12,883		 Expenditure
£000
(68)
26
(981)
(127)
(594)
(1,744)
(11,655)		 Gains/
(Losses)
£000
611
-
-
139
327
1,077
1,734		 Balance at 31
December 2024
£000
9,830
223
-
607
1,557
12,217
92,847

Page 58

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated funds
Accumulated
Capital
Mission
Development
fund
General funds
General fund
Pension reserve
Total Unrestricted
funds		 As restated
balance at
1 January
2023
£000
9,118
108
9,226
3,550
56
3,606
12,832		 Income
£000
-
-
-
9,779
-
9,779
9,779		 Expenditure
£000
-
-
-
(10,096)
-
(10,096)
(10,096)		 As restated
Transfers
in/out
£000
-
-
-
3,542
-
3,542
3,542		 Gains/
(Losses)
£000
-
-
-
413
(56)
357
357		 As restated
balance at
31 December
2023
£000
9,118
108
9,226
7,188
-
7,188
16,414

Page 59

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21. Statement of funds (continued)

Endowment funds
Benefice Houses
fund -
expendable
Stipends fund
capital -
expendable
Parsonages capital
- expendable
Stipends -
permanent
Bramcote
Bungalows -
permanent
Haseldine Houses
- permanent
Perry Gift Fund -
permanent
Other permanent
endowment
funds		 As restated
balance at
1 January
2023
£000
18,472
39,799
166
2,204
970
565
778
406
63,360		 Income
£000
-
800
-
-
-
-
-
-
800		 Expenditure
£000
-
-
-
-
-
-
-
-
-		 As restated
Transfers
in/out
£000
(880)
-
-
(603)
-
-
-
3
(1,480)		 Gains/
(Losses)
£000
-
639
23
210
136
112
109
(274)
955		 As restated
balance at
31 December
2023
£000
17,592
41,238
189
1,811
1,106
677
887
135
63,635

Page 60

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21. Statement of funds (continued)

Restricted funds
Diocesan Board of
Education
Pastoral Account
Strategic
Development
Funding
Benefice Houses
restricted fund
Total of funds		 As restated
balance at
1 January
2023
£000
9,943
99
-
1,021
11,063
87,255		 Income
£000
261
-
1,029
249
1,539
12,118		 Expenditure
£000
(60)
-
(1,029)
(214)
(1,303)
(11,399)		 As restated
Transfers
in/out
£000
(1,717)
(25)
-
(320)
(2,062)
-		 Gains/
(Losses)
£000
519
-
-
80
599
1,911		 As restated
balance at
31 December
2023
£000
8,946
74
-
816
9,836
89,885

Page 61

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Description of funds

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

Benefice houses fund represents the value of benefice houses at the balance sheet date together with the Parsonages Building funds held by the Church Commissioners. These houses are used to provide accommodation for parochial clergy. The Board is not free to dispose of the houses except in accordance with appropriate measures. Stipends fund capital represents the proceeds of the sale of glebe, parsonages transferred by Pastoral (Glebe funds) 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. 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.

Page 62

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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.

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.

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

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

There has been a transfer between funds in the prior year due to misallocation of funds in prior years. More detail is in the prior year adjustment note 20.

Page 63

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22. Summary of funds

Summary of funds - current year

Designated funds
General funds
Endowment funds
Restricted funds		 Balance at 1
January 2024
£000
9,226
7,188
63,635
9,836
89,885		 Income
£000
-
9,835
-
3,048
12,883		 Expenditure
£000
-
(9,911)
-
(1,744)
(11,655)		 Gains/
(Losses)
£000
-
200
457
1,077
1,734		 Balance at 31
December 2024
£000
9,226
7,312
64,092
12,217
92,847

Summary of funds - prior year

Designated funds
General funds
Endowment funds
Restricted funds		 Balance at
1 January
2023
£000
9,226
3,606
63,360
11,063
87,255		 Income
£000
-
9,779
800
1,539
12,118		 Expenditure
£000
-
(10,096)
-
(1,303)
(11,399)		 As restated
Transfers
in/out
£000
-
3,542
(1,480)
(2,062)
-		 Gains/
(Losses)
£000
-
357
955
599
1,911		 As restated
Balance at
31 December
2023
£000
9,226
7,188
63,635
9,836
89,885

Page 64

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

23. Analysis of net assets between funds

Analysis of net assets between funds - current period

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
2024
£000
10,703
1,193
1,525
26
3,719
(523)
(105)
16,538		 Restricted
funds
2024
£000
-
11,153
889
-
1,078
(903)
-
12,217		 Endowment
funds
2024
£000
25,619
19,378
19,095
-
-
-
-
64,092		 Total
funds
2024
£000
36,322
31,724
21,509
26
4,797
(1,426)
(105)
92,847

Analysis of net assets between funds - prior period

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		 As restated
Unrestricted
funds
2023
£000
11,036
1,760
1,525
47
3,168
(1,017)
(105)
16,414		 As restated
Restricted
funds
2023
£000
-
8,679
891
-
944
(678)
-
9,836		 As restated
Endowment
funds
2023
£000
25,110
19,882
18,738
-
-
(95)
-
63,635		 Total
funds
2023
£000
36,146
30,321
21,154
47
4,112
(1,790)
(105)
89,885

Page 65

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses on investments
Dividends, interests and rents from investments
Profit on the sale of fixed assets
Decrease in debtors
Decrease in creditors
Interest paid
Defined benefit pension scheme adjustments
Net cash used in operating activities		 2024
£000
3,048
14
(1,820)
(1,237)
(1,020)
66
(364)
-
(86)
(1,399)		 2023
£000
2,686
31
(1,967)
(1,261)
(800)
1,471
(276)
9
-
(107)

25. Analysis of cash and cash equivalents

Cash in hand
Investment cash (note 16)
Total cash and cash equivalents		 2024
£000
3,865
743
4,608		 2023
£000
3,135
1,478
4,613

Page 66

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due after 1 year		 At 1 January
2024
£000
3,135
(105)
3,030		 Cash flows
£000
730
-
730		 At 31
December
2024
£000
3,865
(105)
3,760

27. 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 (2024 £936,000 - 2023 £896,000).

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 2023, since the Scheme was in surplus, accordingly no value has been recognised in the balance sheet.

Page 67

Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

27. Pension commitments (continued)

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 £64,000 (2023: £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, however there are currently no active members in 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
2024 2023
% %
Discount rate 5.50 4.60
Future pension increases 3.20 3.10
Inflation assumption (RPI) 3.30 3.20
Inflation assumption (CPI) 2.40 2.40
At 31 At 31
December December
2024 2023
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.8 21.4
- at 65 for a male aged 45 now 24.9 24.6
- for a female aged 65 now 24.4 23.6
- at 65 for a female aged 45 now 27.5 26.9

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

27. Pension commitments (continued)

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

Bonds
Cash
Total fair value of assets
The amounts recognised in the Statement of financial activities are as follows:
Interest income
Interest cost
Total amount recognised in the Statement of financial activities		 At 31
December
2024
£000
3,294
41
3,335		 At 31
December
2023
£000
3,697
47
3,744
2024
£000
(167)
145
(22)

There are no active members, there are therefore no current service costs recognised in the Statement of financial activities.

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

Opening defined benefit obligation
Interest cost
Actuarial gains
Benefits paid
Closing defined benefit obligation		 2024
£000
3,302
145
(349)
(297)
2,801

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

27. Pension commitments (continued)

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

Opening fair value of scheme assets
Expected return on assets
Actuarial 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		 2024
£000
(2,801)
3,335
(534)
-		 2024
£000
3,744
167
(343)
64
(297)
3,335
2023
£000
(3,302)
3,744
(442)
-

In the current year the surplus of £534,000 (2023: £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. The total actuarial loss to the Statement of Financial Activity of (£86,000) relates to actual gains on scheme assets of £349,000, actuarial losses on scheme assets of (£343,000) and the unrecognised movement in the capped pension liability of (£92,000).

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

28. 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 £nil (2023: £105,289) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2024 was £nil (2023: £1,424). A grant of £10,000 has been made to the charitable company in the year (2023: £15,000).

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 Roger Periam, John Hunter, Hilary Craik, Chris Moodie, Angela Pae and Canon John Loughton. The Multi Academy Trust paid the Board £40,644 (2023: £45,840) in respect of reimbursement for salaries and office costs. The balance outstanding at 31 December 2024 was £12,729 (2023: £11,117).

29. 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.

30. 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.

31. 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 £502,244 on behalf of 5 schools (2023- £123,000 on behalf of 4 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.

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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391

(A company limited by guarantee)

SOUTHWELL AND NOTTINGHAM DIOCESAN BOARD OF FINANCE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

32. 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 2024, 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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Document ID: 508a7f72a791f7ad464536c837fc359487de5c5dc9796f693bf5c17743246391