2021-12-31-accounts

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 ANNUALREPORT Introduction by the Chair of the Board of Finance....................................................................... A Legal Framework.................-..........-.........-...........-.-...........-......-........-...................................... Al Legal Objetts................................................................................................................ A2 Public Benefrt............................................................................................................... Strate8lc Report........................................................................................................................ Bl Strategic Aims . B2 Key achievements in the year,....... B3 Financial Performance................................................................................................. B4 Future Plans ..........,,................,...................................,............,.........,.............,......... 11 85 Risk Management........... .12 C Structure and Governance...................................................................................................... 13 Cl Organisation and decision making strutttjre. .13 C2 Trustee recruitment, selection and induction............................................................ 13 C3 Remuneration of key management personnel........................................................... 14 C4 Funds held as custodian trustee................................................................................. 14 C5 Funds held on behalf of schools and Zambian dioceses............................................14 D Trustees, Responsibilities......... DI Trustees, Responsibilities for Annual Reports and Accounts....................................14 D2 Statement of disclosure to the auditors.................................................................... 15 D3 Appointment of auditors............................................................................................15 E Legal and Administrative Details............................................................................................. 16 F Members and Trustees.....,,.................,....,,.....,,...............,...,,,................,...,,.................,...,,,.. 18 Independent Auditorfs Report...... .20 Statement of Financial Activitie5................................................................................................ 24 Income and Expenditure Account..................,......,...............,....,.................,....,......,..........,....,.. 25 Balance Sheet.............................................................................................................................. 26 Cash Flow Statement....................... .27 Notes to the Financial Statements.............................................................................................. 28 Appendices................................................. ....... .75 Appendix A Consolidated Financial Tru5ts................................................................................. 76 Appendix B Glossary of terms....,......................................,....,..........................,,......,................ 78 .14

The Bath and Wells Diocesan Board ofFinance Annual Report For the year ended 31 December 2021 ntroduction by tlie CRiair ot'the Board of Finance 2021 proved to be a challen8in8 year for the Diocese of Bath & Wells not only for the Diocesan Board of Finance IDBFI but also for the 466 parishes who historically have provided some 75% of the of its funds via the Parish Share mechanism. These funds help pay for the ministry SUPPOrt that the diocese provides, including stipendiary clergy. The continuing impact of the Covid pandemic and in particular the enforced lockdowns led to a reduttion in income received by parishes with a consequent knock-on effect to the Parish Share parishes felt able to make. This wasn't universally the case, and we are particularly grateful to those parishes who sought to maintain, and in some cases increase, the amount of Parish Share paid. The net impart was a drop in income from parishes of some £1.3mi11Son In the year compared to what had been asked for which. together wlth other cost pressures mainly arising from a lower than budBeted vacancy rate in 5tipendiary clergy, meantthe Board of Finance suffered an operational deficit of £2.9 million {before investment gains and a budgeted £1.4 million transfer from endowed fundsl. Strong investment performance and proflts on the sale of surplus diocesan property meant that the net drawdown on general reserves was reduced to £604k which has pushed our general reserves down to three monthg expenditure- the bottom of our desired range. Relyin8 on investment gain5 to bail us out of a deficit posrfcion is not a sustainable financial pollcy so the diocese has embarked on a series of measures to bring its finances into balance overthe next five years including a restrutturing of the diocesan support structures at the end of 2021. Thls restructuring has brought a welcome focussing of the diocesan support services to deanery and parish priorities at the same time as saving £250k per annum in staff costs. We are workln8 too with deaneries to reduce the number of stipendiary clergy we deploy over the next few years from a current 178 post5 down to around 150. This 15 being done at the same time as we encourage the emergence of otherforms of ministry acr055 the diocese includin8 lay and non- stipendiary licensed ministry. Whilst these changes wlll brSn8 the cost base down over a number of years, we need parlshes to play their part by returning as much Parish Share as is possible. It will not be easy as the on8oin8 efferts of the pandemlc have resulted In changes in the way people 'experience' church and we are anticipating further deficits in 2022 as a result, which wlll push our free reserves even lower. There is much to be positive about too. The last two years has seen churches adopt new and Innovative ways to reach out to their communities and we have seen some remarkable stories emerging. Some of these are highlighted in our annual revlew whlch is published separately and can be accessed online at tt board-of-flnan annu l-revlew-and- accounts d f course, later this year we will be welcoming Bishop Michael to the diocese tirement of Bishop Peter in 2021. foll lan Thgodoreson- DBF Chair

The Bath and Wells Diocesan Board ofFinance Annual Report For the year ended 31 December 2021 A Legal Framework The Trustees, who are also directors for the purposes of company law, presenttheir annual report together with the audited financial statements for the year ended 31 December 2021. The Dlocese of Bath & Wells is one of 41 dloceses maklng up the Church of England. Each diocese is a separate legal entity. The Diocese of Bath & Wells provides support to the parishes in Somer5et, and it is the parishe5 that represent the visible presence of the Church 'on the 8round'. Each parish, and Wells Cathedral too, Is a separate legal entityi and therefore, although there is a pooling of financial resources into the Common Fund, their re5uIt5 are not presented in these financial statements The companyi The Bath and Wells Diocesan Board of Finance IDBF), was incorporated on 6 March 1915 as a company limlted by guarantee (No. 1395571 and Its 8overnln8 documents are Its Memorandum and Artlcles of Assoclatlon. The DBFIS reglstered wlth the Charity Commisslon (No. 2493981. Al Legal Objects The DBF'S principal object is to promote, a55iSt and advance the work of the Church of England in the Diocese of Bath and Wells by acting as the financial executive of the Bath and Wells Diocesan Synod. The DBF has the following statutory responsibilities: the management of glebe property and investments to 8enerate income to supportthe cost of stipends arising from the Church Property Measure 2018; the repair of benefice houses as the Diocesan Parsonages Board under the Repair of Benefice Buildln8s Measure 1972; the management of investments and the custodian of assets relating to church schools under the Diocesan Board of Education Measure 1991,. the custodian of permanent endDwment and real property assets relatingto trusts held by Incumbents and Archdeacons and by Parochial Church Counclls IPCCSI as Diocesan Authorlty underthe Incumbents and Churchwardens (Trusts} Measure 1964 and the Parochial Church Counclls (Powers) Measure 1956. The strategic priorities of the DBF are established by the Diocesan Synod in communication with Deanery synods, PCCS. and the Bishop of Bath and Wells lin respect of their responsibility for the provision of the cure of 50ulsl. To this end, significant time and effort is committed to communication between and with these bodles, as well as wlth the church nationally.

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 Decernber 2021 A2 Piiblic Benefit The Trustees are aware of the Charity Commission's guidance on public benefit In Yhe Advancement of Religion for the Public Benefit" and have regard to that guidance in their administration of the charity. The DBF believes that this report provides evidence of the public benefit of the chariws work in 2021. As descrlbed more fully throughout the report, the DBF provides funds to support ministers of religlon In the dlocese, to support educatlon and to support the maintenance of many buildings including parsonages and churche5, many of which form an Important part of the hlstoric fabrlc and archltectural herltage of the area. The vast majority are available to the public at large and none are restricted to members of the Church of England. The religious purposes of the Church of England are serious and tend to the moral and Spiritual improvement of the public or, in other words, to the cure of souls. The ministers of religion seek to advance and promote the Christlan religion amongst the people of the diocese and to sustain their belief in God, in part through the provlslon of publlc rellglous servlces, open to all, and in part through bearing Christian witness. B Strategic Report Bl Strategic Aims In line wlth Its legal and charitable objects, the role of the DBF is to identify and manage the financial aspects of the provision of mlnlstry wlthln the diocese 50 a5 to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop's Councll, deanerles and parishes to further the mission and strategic priorities of the dlocese. Diocesan Wision The dlocesan vislon Is expressed In the following words". "In response to God's Imrnense love for us. we seek to be Gods people Ilvlng and telllng the story of Je5U5." Strateglc Prlorltles The 5trate8ic plan has three priorities for action: l. to place mission and evangelism at the heart of everything that we do 2. to align our resources towards mission 3. to identify, develop and release the gifts of all our people These strategic priorities govern the implementation of the strategy. They provide a framework for decision makin8 and plannln8, at diocesan level but also for archdeaconries and deaneries.

The Bath and Wells Diocesan Board ofFinance Annual Report For the year ended 31 December 2021 B2 Key achievements in tl)e year Notwithstanding the many restrictions placed upon the working of the diocese durin8 repeated lockdowns 2021 was a year of significant change. Mlsslon Support and Ministry Development A major reshaping of the existing staff structure took place to enable more core support for parishes and deaneries alongside specific areas of expertise. As well as providing an annual saving to the diocese of £250k per annum, early feedbackfrom deaneries and parishes who have drawn on the resource5 of the re-shaped teams suggest the multi-disciplinary approach is greatly appreciated. In November the team ran trainin8 for clergy across the diocese on the theme of Enabling Ministries, delivered alongslde Chris Goldsmith, Head of Ministry for the Church of England and Carrie Myers, Lay Ministries Adviser for the Church of England, Further sessions were conducted with deanery leadership teams to introduce them to the Enablin8 Ministries work as part of the roll out of this important inltiatlve over the coming 5 years. Educatlon The Education department expanded its hi8h-quality online training offer which was taken up by over 1,000 people and 90% church schools and they celebrated too the opening of King Ina School on its new site. A5 well as resuming governor conferences and in-person head teacher retreats the department successfully garnered 1,300 responses from children in Somerset schools regardin8 thelr hopes for a new bishop as part of the discernment process. Property Following a restructuring ofthe propertyteam and the appointment in April 2021 of a Head of Property with a specific mandate for maximising the return from our property assets, we have been able to anticipate an additional £450k per annum return from the property portfolio which helps relieve the burden on Parish Share. Our property team has continued to deliver maintenance and repairs on properties acros5 the diocese, despite many obstacles and practical restrictions during the ongoing pandemic and published a Clergy Housin8 Guide, giving clear guidance to those occupying DBF property. The property team dealt with 1,242 response fflaintenance calls across the residential portfolio and enabled 34 clergy moves/new occupations through 2021, of which 13 properties required significant improvementlrenovatlon. Governance A major review of the governance structures within the diocese was conducted and the initial findings reported to Council. Implementation of the findings, which include recommendations for streamlining decision making within the diocese, will be implemented from 2022 onwards.

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 B'I Finqincial Performance Hnanclal Outturn The operating deficit on general funds prior to investrnent gains and transfers was £2.9m: after Investment 8aSns, actuarlal movements and transfers between funds, the resultant drawdown on unrestrlcted reserves was 604K. The operating deficit primarily arose from continued low levels of Common Fund receipts and a lower level of clergy vacancies than budgeted, As a consequence of the last years, downturn the diocese is facing significant pressures in unrestricted reserve levels and ensuring it holds Sufficient cash reserves to support operational activitie5. However, unlike many dioceses, the DBF holds a significant level of endowed funds whlch It can draw upon. (ln 2019 The Trustees elected to adopt Total Return accounting on certain permanent endowed funds allowing it to draw down of up to 4% of the balance held as Unapplied Total Return as at the balance sheet date. In the year to 31 December 2021 this transfer amounted to £1.4 mllllon-see note 18to the accounts). Income and expendlture The Statement of Financial Activities (SOFA} for the year on page 24 shows total income includlng from endowments of £12.9m12020- £13.7ml and total expenditure of £15.6m {2020- £15.9m}, resulting in net expenditure of £2.9m (2020- £2.2ml. Income decreased by £0.8m, wlth the main factors being reduced Parish Share contributions, and reduced investment income as investment returns have been achieved through capital growth rather than dividends and yields. In addition, there has been less capital gain arising on the sale of fixed assets in the year. Total expenditure decreased by £0.3m with a decrease in charitable activities spend. Realised and unreallsed Investment galns of £6,5m (2020: Loss £0.2ml, contrlbuted to the net increase in total funds of £3.7m12020- net decrease of £2.4ml. Total fund balances increased from £101.2m to £104.9m Common Fund In 2021the DBF Increasedthe Parlsh Share contrlbutlons requested by member by l.l% compared with the 2020 level. Every effort is being made by the DBF to review the tosts covered by the Common Fund into which Parish Share contributions are made, to ensure the Common Fund is Sustainable. A lar8e part of the costs are stipends, pen5ion5, staff 5alarie5 and building maintenance costs, which are all increasing broadly in line with inflation. As noted above, the effect of the pandemic meant the many parishes were unableto sustain their historic levels of giving and, for a second year In a row, the contrlbutlon rate fell from Its hlstorlc levels of around 99% to something in the mid-805. In 2021 the DBF received 85% of share requested from parishes12020- 87%) a reductlon of about £1.5m on pre-pandemic levels, which meant that the diocese had to sub5idise an increasing level of ministry costs from its own reserves.

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 Grants recelved The DBF gratefully acknowledges 8rants recelved from Allchurches Trust of £126,00012020 £131,000) and from The Foundation of 5t. Matthias totallSng £57,00012020- £57,000). The DBF also received the following grants from the Archbishops, Council: £402,00012020- E257,0001 Strategic Development Funding towards the Pioneer Project £522,00012020- £511,CM)01 block grant for ordinands, trainin8 fee5 and expenses under the Resourcing Mlnisterial Education process. Balance Sheet The net assets at the balance sheet date totalled £104.9m 12020 - £101.2m). Thls Includes properties totalling £66.2m12020 - £65.7m}, which are mainly used to house stipendiary cler8y. Much of the remainder of the assets shown in the balance sheet are held in restricted and endowment fund5 and cannot necessarily be used forthe general purposes ofthe DBF.-see notes 24 and 25 to the accounts. The Trustees are satisfied that the DBF has adequate resources to contlnue to operate as a goin8 concern and have prepared the financial Statements on that basis. Reserves Pollcy- Free reserves The Trustee5 require reserves to: meet short term exce55es of expenditure over income provide fund5 for expenditure with long life horizons such as clergy housing fund future initiatives such as the changing strutture of ministry and the deployment of clergy. It is the DBF'S pollcy to maintain the readily reallsable assets in the Unrestricted General Fund at between three and six months, unrestricted expenditure. The aim is to ensure the availability of sufficlent liquid fund5to enablethe DBFto meet Its daily commitments. A 31 December 2021 free reserves stood at £3.6m (2020 - £4.3m) which is around three months, expenditure. These are budgeted to fall further In 2022 as the savings associated with the planned reductlon In stipendiary clergy and associated housing will not take effect immediately and the diocese has once agaln been forced to set a deficit budget. Designated and other reserves The Diocese hold a number of other reserves for operatlonal purposes which are detailed in full in note 24 of the accounts. Grant rnaking policy The DBF makes grants in pursuance of its objects, and the nature of 8rant5 made in 2021 is set out in note 12 to the accounts.

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 Grants are made to the National Church to cover a proportion of Its central costs and to coverthe cost of tralning for ministry. Grants are also paid to other connected charities and charitable projects which support the furtherance of the DBF'S objects. Investment Policy The DBF invest monies not immediately required for its operational purposes in listed investments managed on its behalf by two separate investment managers, Brewin Dolphin and CCLA. AII Investments are held In accordance with the Church of England's Ethical Investment Advisory Group's IEIAGI guidance - the EIAG is widely held to be a leadin8 thlnk tank in the field of ESG (Environmental. Social and Governance) investing. The DBF also holds glebe Ipropertyl investments in agricultural land, commercial and residential land and buildings and the rents received and the gains arising on disposal are used to help fund clergy stipends, The dlocese seeks to achieve a 4% real return on all it5 investments which is used to fund the day-to-day operations of the diocese. In addltlon. the DBF acts as trustee of a number of trust funds, and these are invested in accordance with the related trusts. Note 25 to the accounts provldes detalls of the assets of each fund, together with the related purposes. and note 18 summarisesthe movements in investments durlng the year. Pro8ramme related investments The DBF provides loan finance to PCCS and related projects through two loan initiative5: CCLA backed Diocesan Loan Scheme {closed to new appllcations) This scheme allowed PCCS to obtain loan finance from the DBF at low interest rates for perlods from 5-7 years to facllltate building or other projects which further the mission of the church. The DBF received loan fundin8 from CCLA totalling £lm whlch Is avallable to provide these loan facilities until May 2026. Loans range from £3,000 to £150,OCKI. At 31 December 2021 the total loans outstanding from parlshes from this scheme was £385K {2020- £491KI. Dlocesan Loan Fund The DBF has designated a £lm reserveto allow further loansto be extendedto PCCS where CCLA funds are not available. These loans are repayable over variable periods and are at low interest rate. At 31 December 2021 loan balances outstanding, prior to bad debt provision, were £730K. The DBF conslders these Investments assist PCCS to achieve the mutual charitable objects of furthering the mission of the church within the diocese and complement the PCCS use of grant funding and local fundraising including pledged donations which are received over a number of years. Provislon Is made In the accounts for any assessed non-recoverable balances. People resources The DBF and the parishes It Serves are resourced with over 61x1 clergy, either licensed or with permission to officiate, including not only stipendiary parish priests, curates and archdeacons but

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 also self-supporting ministers, chaplains, ministers with a House for Duty and many retired clergy. In addition, there are over 350 lay ministers. either licensed or with permission to officiate, including readers, authorised lay mlnisters and lay chaplalns. The DBF is dependent on the hu8e number of people involved in church activities both locally and at diocesan level. The service provided to a communlty through church volunteering also has a significant impact on people's relationship to the church, particularly at times of crisis. Within this context, the DBF greatly values the considerable time given by all committee members and other volunteers across the diocese in pursuit of the mission of the diocese. Related Partles The DBF identifies the followin8 as related parties for the purpose of reportin8: General Synod, Church Commissioner5 andArchbishops' Council The DBF has to comply with Measures passed bythe General Synod of the Church of England and also makes certain annual payments to the Archbishops, Council towards the running costs of the National Church. As d isc105ed in note 13 to the account5, certain costs of the bishops, including stipends and pension contrlbutlons are borne by the Church Commissioners. Porochiol Church Counci15 fPCCs) The DBF is required by Measure to be custodlan trustee In relatlon to certaln PCC property, but has no control over PCCS, which are independent registered or excepted charities. The accounts of PCCS and deanerles do not form part of these financial statements. PCCS are able to influence the decision making wlthln the DBF and at Dlocesan Synod level throu8h representatlons to those bodies and through the input of their Deanery Synod5.

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 Other The Church of England Pensions Boord to which the DBF pays retirement benefft contributions for stlpendlary cler8y and employees. It also offers schemes to provide housing for clergy in retirement. The Chapter of We115 Cathedralfrom which the DBF receives modest alms. Some diocesan events held in the Cathedral are paid for bythe DBF.The DBF provides HR and Safeguarding services to the Chapter under service level agreements. The Foundotlon of StMotthi05 of which three DBF employees are trustees, from which the DBF receives grants for educatlonal servlces. The Bath and We115 Multi Academy Tnist (B WMA T) BWMAT leases servlced office accommodation from the DBF and the DBF provided educational services to BWMAT during the year. BWMAT occupy school building5 under 38reement5 With the DBF. The DBF does not exercise control over these buildings and therefore they are not recognlsed as assets in these financial statements. BWMAfs company name and number is The Bath and Wells Diocesan Academies Trust1082070951. The P¢71oce Trust, Wells, of which the Bishop of Bath and Wells is a trustee. The OBF provides HR services to the Trust under a seNice level agreement. Discretionary trustfvnds administered by employees of the DBF. DBF trustees of these trusts are as follow5: The 5toneTrust15 DBFtrustees, l DBF employee); The HerbertTrust {2 DBFTrusteesl; Bishop's Rib (I DBF Trusteel,. Wells Clerical Charity12 DBF trustees); The Archdeaconry of Taunton Fund for Clergyi their Widows and Dependants11 DBF trustee); The Wynne Willson Scholarship Fund 12 DBF trustees); and The Bath Clerical Families Fund12 DBF trustees). Except for the Bath Clerical Famille5 Fund, management charges are paid by the trusts to the DBF and the DBF receives an annual grant from the Bishop's Rib towards the working costs of the three Archdeacons. Transactions with the maln categorles of related parties are identified In appropriate place5 throughout the financial statements. Where the materla16ty of the transactions merits more detailed disclosure is 8iven in note 13 to the finantial statements. io

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 B4 Future Plan5 Mlsslon Support and Mlnlstry Development The diocese team will support deaneries and parishes as they explore the development of shared local ministry by developin8 a fra mework for the discernment and eq uippin8 of a range of ministries , providing monthly on line workshops to introduce the Enabling Ministries resources to parishes and deaneries and supporting them as they reflect on the opportunities and challenges that they face locally and the partnership5 they might form. It will develop the Givin8 and Funding Team by appointing local advisors, using the National Givlng Fund, to work in the Archdeacon ries, giving support to parishes seeking to resource their mission. It will also commence the roll out of the Parish Giving Scheme to help reduce the burden on parish treasurers for managing Gift Aid claims and increase the level of regular, commltted givlng across the diocese A new Deanery Leadership Handbook will be launched which complements the diocesan approach to shared local ministry and will support deanery leaders as they discern the right shape of ministry for their deaneries alongslde the current redurtion In stipendiary posts. Education The dlocese wlll Implement the new DBE Measure which will bring the work of the Education into the heart of the work of the diocese. At the same tlme the team wlll return to in-person contacts and visits to schools and parishes, enhanced by high quality online training which improves accessibility and reduces carbon footprint. Safeguardlng The priority is to restart face to face delivery of training as a support for Parishes struggling with online training. The importance of safeguardin8 will be promoted through a variety of communication method5 and the website will be improved to make sure it is easier to use. Emphasi5 will be placed on equipping the network of Parish Safeguarding Officers with the tools and support required to help them feel confident in their roles. Property The DBF wlll condutt a strateglc revlew of housing requirements and glebe assets across the diocese, enabling surplus assets to be realised and In turn ald a reductlon In pressure on DBF reserves. parishes and the Common Fund. As part of the strategic intent to move towards becoming a net -zero carbon diocese by 2030, by the end of 2022 the team will have ascertained the current energy and environmental performance of the housing stock. Where possible and financially viable the DBF will seek to improve energy efficiency and carbon output ofthe housin8 Portfolio. li

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 B5 Risk Mana8emeiit The Trustees have overall responsibility for risk management and internal controls and have a risk management strate￿ designed to ensure that the principal risks to the organisation are identified and managed. The Trustees delegate to the Audit and Risk Mana8ement Group {ARMGI the task of ensuring that risks are identffied, reviewed, and brought to thelr attentlon. Risks are reviewed regularly and incorporated In the General Risk Reglster. Rlsks'Assessed' 35 high are detailed in the High-Risk Register. which identifies what steps are already being taken to mitigate the rlsk, and what the 'Reviewed' rlsk will be if further steps are taken. This assists Trustees in the management of risk including the deterrnlnation of rlsk appetlte. Prin¢ipal Risks and Uncertalntles arlsln8 from 2021 For the past two years the impart and risk5 Of Covid-19 have been highlighted here. As we Ihopefullyl emerge from those threats. it is clear that it leaves the Diocese facing the challenge of securing financial resilience. Many Steps have already been taken to mitigate the situation, and strong investment performance and property sales helped in 2021. Nonetheless, perhaps the most striking challenges we face are the uncertainties and dlfficult-to- predirt assumptlons underpinning 2022, the 2023 Bud8et and five-year resourcing plan. It is difficult at this stage to know therefore whether the DBF restructurin& deployment plans. or common fund proposalsfor example will be sufficient orwhether morewill be needed. Relyin8on investment gains to cover operating costs 15 not 5UStainable, and is anyway also unpredictable, for example with the value of investments having fallen signfficantly since December 2021. The key word that expresses best the current position 15 uncertointy. Principal risks include insufficient tash flow due to parlsh recelpts not meetlng budgeted levels and cler8y levels not reducing to bud8et levels. in conjunction with a failure to develop new sources of income. Risks also include a posslbly slow rebuilding of church membership and attendance with consequential difficulties of rebuilding parish reserves and fundln8 Parlsh Share. Mitigations in place include regular performance monitoring and readiness to take torrettive action if necessary,. as well as improved communication to parishes concerning the importance of Parish Share and providing greater support for parishes, An additional, new, risk relates to the cost of Implementing the Church of England policy of becoming carbon neutral by 2030. A multi-di5ciplinary task force has been proposed and the property team has identified steps it needs to take. but the risk remain5 high until more work is done. A potentially high risk exists for Education, princlpally because of the uncertainty surrounding an increase in the number of schools the numbers of church schools applying to Joln MATS, which could mean that more ternporarylfixed staff will have to be engaged to carry out the work," something difficult to plan for. 12

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 A major review of governance structures has been undertaken and its implementation from 2022 onwards, with recommendations for streamlining decision-making within the diocese, wlll asslst the diocese in belng nimble and responslve In the face of the uncertaintles. C Structure and Governance Cl Organisation ai)d decision making strncture The statutory governing body of the diocese is the DiocÈsan Synod, which is an eletted body with representation from all parts of the diocese. Its legal basls Is the Synodical Government Measure 1969. Membership con51Sts of ex-officio member5, including the bishops and archdeacons, clergy members elected bythe houses of cler8y and lay persons elected by thè houses of laity in deanery synods, up to five other persons who may be c￿opted by the house of clergy orthe house of lalty and a maximum of ten members nomlnated by the Bishop of Bath and Wells. The Diocesan Synod normally meets three times a year during March, July and Ortober and elerts members to serve as trustees on the Bishops, Council. Since l April 2008 the members of the Bishop's Council (which is the standing committee of the Diocesan Synod) have also formed the Board of Directors (the Board) of the DBF, and the members of the Diocesan Synod have been the members ofthe DBF. There is a Finance Group ofthe Bishop's Council, which acts for and assists the Board in its more detailed work. The Board has dele8ated responsibility for the day-tothday management of the DBF to the Diocesan Secretary who is supported by a management team. The Diocesan Secretary also meets regularly with the three archdeacons. C2 Trustee recruitment. selection and induction The Board includes: Ex-offlclo Trustees Trustees who have been elected by Synod to serve for three years, and Trustees appointed by the Blshop of Bath and Wells forthe same term. All new Trustees are given an induction pack with key information about the DBF, theSr role as Trustees and their role as company dlrector5. All Trustees receive Induction training when first appointed and receive ongoing trainin& as appropriate. 13

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 C3 Reinuneratioi) Df'key Iiiaiid%einent pei's()nnel Emoluments of higher pald employees are determined by the Conditions of Service Group. Remuneration is set following a remuneration policy which includes regular appraisals, and remuneration and salary benchmarking. The policy has been approved bythe Board. Details of the aggregate remuneration of key management personnel is shown in note 14 to the account5. C4 Fund5 hL'ld as Lljstoilian trustce The DBF Is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils IPowers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 wherethe managingtrustees are PCCS and others. These assets are not aggregated inthe financial statements as the DBF does not control them, and they are segregated from the DBF'S own assets by means of a separate bank account and accountlng system. Further detai15 of financial trust assets, whose market value amounted to £13.5m at 31 December 2021 12020 - £11.8ml, are available from the DBF on request, and are summarlsed in note 30. Where properties are held as Custodian trustee, the deeds are identified as such and held In safe custody by the DBF. C5 Funds held on behalf of schools and Zambian dioceses The DBE Is Incorporated within the DBF and receives contributions from 8overnors of church schools Wlthin the diocese and government grants in connection with major repair and capital projects to church schools. The DBE administers these monies as managing agent and makes appropriate payments to contractors for work carried out. The monles do not belong to the DBE and as such do not form part of these financlal statements. The amount held at 31 December2021 was £365,91012020- £352,023). The DBF manages UK bank accounts for the link dioceses in Zambia as managlng agents. The monies do not belon8 to the DBF and as such do not form part of these financial statements. The amount held at 31 December 2021 was £10,007 {2020- £52,342). D Trustees, Responsibilities DI Trustees. Responsibilities for Annual Reports aiid Accounts The Trustees are responsible for preparing the Trustees, Report, incorporating the Strategic Report, in accordance with applicable law and re8ulations. Company law requires the Tru5tee5 lin their capacity as directors) to prepare financial statements for each financial year which glve a true and fair view of the state of affairs of the company and of the net income or expenditure of the company forthat year. In preparing those financial statements the trustees are requlred to: selert the most suitable accounting policies and apply them conslstently; make Judgements and estimates that are reasonable and prudent; ft)Ilow applicable accountlng standards and the Charities SORP IFRS1021, subject to any material departures disclosed and explalned in the financial statements; 14

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 prepare the financial statements on the going concern basis unless It Is Inapproprlate to presume that the company wlll contlnue In business. The Trustees are responsible for keeping proper accounting records whlch disclose with reasonable accuracy at any tlme the flnancial position of the company and to enable them to ensure that the financial statements comply with the Companies Art 2006. They are also responsible for safeguarding the Corporate and trust assets of the company and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularvtie5. D2 Statement of disclosure to the auditors The trustees have taken all the necessary steps to ensure that they are aware, as trustees, of any relevant audit informatlon and to establlsh that the auditors are aware of that information. As far as the trustees are aware, there Is no relevant audit information of which the companvs auditors are unaware. D3 Appointment of auditors A resolution to reappoint Haysmacintyre LLP as audltors to the company and to authorise the Trustees to fix thelr remuneration will be proposed at the Annual General Meeting. No trustee had any beneficial interest in the company durin8 2021. The names of the Trustees (who a150 act as directors) who Served during the period l January 2021 to the date of approval of these accounts are shown in settion F. Trustees, remuneration and expenses are detailed in note 13 to the accounts. The trustees declare that they have approved the trustees, report (incorporating the strategic report) above. Signed on behalf of the Board Rt Revd R Worsley Trustee l Theodoreson Chair Date: 141612K 15

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 E Legal and Administrative Details Registered Office Flourish House 2 Cathedral Avenue Wells Somerset BA5 IFD 01749 670777 [e-mail] vMw.bathandwe115.org.uk Telephone E-mail Website Chairs DBF Chair and Chair of the Finance Group DBF Vice-chair and Chalr of the Houses Committee DBF Vlce-chair and Chair of the Conditions of Servlce Group Chair of Investments Committee Mr l Theodoreson FCA Chalr of Common Fund Committee The Venerable Dr A Youings Chair of the Audit and Rlsk Management Mr K Beecham Group Mr l Theodoreson FCA DrA A Palmer LLM PhD FCIB Mrs M Lee Officers Diocesan Secretary Ms S Kindleysides (to 30 June 20211 Canon R Pearce Ilnterim from 16 November 2021 to 30 September 2022) Mr P Evans BA ACIS Mr M Pinnock Bsc FCA Mr J Millard Bsc MRICS Ifrom l March 20211 Ms R Paveley {to 21 May 20211 Ms E Andrews Mst Ms G Armstron8 (to 8 October 20211 Mr B Goodhind Bsc BA DIPS (from 27 September 20211 Assistant Diocesan Secretary Head of Finance and Operations Head of Property Services Head of Communications HR Manager Safe8uardin8 Adviser Agents Solicitor and Dlocesan Reglstrar Preb R Callaby LLB (to 30 June 20211 C Jones LLB (from l July 20211 14 Market Place Wells Somerset BA5 2RE Consultant Land Agents Greenslade Taylor Hunt l Hl8h Street Chard Somerset TA20 IQF Haysmaclntyre LLP 10 Queen Street Place London EC4R IAG National Westminster Bank PLC 7 High Street Wells Somerset BA5 2AD Auditors Bankers 16

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 Investment Mana8ers CCLA Investment Management Limited Senator House 85 Queen Victoria St London EC4V 4ET Brewin Dolphln Pynes Hill Woodwater Park Exeter EX2 5FD 17

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 F Members and Trustees The members of the Bath and We115 Diocesan Synod are members of the DBF. Similarly* members of the Bishop's Council are dirertors and trustees of the DBF. The Bishop'5 Council consists of the following members". Ex-officio the Bishop of Bath and Wells (the President), the Bishop of Taunton, the Archdeacons, the Dean of Wells, the Vice-Presidents (Chair5 of Diocesan Synod House of Clergy and Laity) Nominated Up to five lay members nominated by the president, includlng the Chalrs of the DBF and DBE Elected- flve members (two clergy and three layl of the three archdeaconrles The Bishop's Council appoints the Flnance Group with delegated powers to manage the operational financial affairs of the DBF. The followlng served as Directors and Tru5tee5 for the perlod from l January 2021 to 14 June 2022 Ex officio The Rt Revd P Hancock (until 22 May 20211 The Rt Revd R Worsley The Venerable A Gell The Venerable S Hill The Venerable Dr A Youings The Very Revd J Davies The Revd Preb J Haslam Mrs M Master5 luntil 31 July 20211 Dr C Mason (became ex-officio 28 October 20211 Blshop of Bath and Wells, nominees Mr A Blackshaw luntll 15 June 2021) Ms TJ Khodabandehloo (appointed 15 June 2021} Mrs M Lee Dr A A Palmer The Revd C Shaw Notice (appointed 15 June 20211 Mr l Theodoreson 18

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2021 Elected Bath Archdeaconry The Revd M A C Andrews lelected l January 20221 The Revd S Buddle {until 31 August 20211 The Revd R Driver Mr P Ed8e Mrj Loring Dr E l Marshall {eletted l January 20221 Dr C Mason {until 28 October 2021- then became exwofflciol Wells Archdeaconry The Revd B Faulkner {until 31 December 20211 The Revd D M Keen (elected l January 20221 The Revd D MacGeoch (until 31 December 2021) The Revd RJ Miles (elected l January 2022) Mr R Dean (elected l January 2022) MrT Hind Mr C Jenkins (until 31 December 20211 Dr R Sage Taunton Archdeaconry The Revd M Andrews (until 6 October 20211 The Revd A E Fulton (elected l January 20221 The Revd J B V Laurence (elected l January 20221 The Revd C Ralph {until 31 December 2021} Mrs S G Bult {elected l January 20221 Mrs K Cannell (until 31 December 20211 Mr S Grimshaw Mrs KTucker luntil 31 December 20211 19

IndependentAuditorfs Report to the Members ofThe Bath and Wells Diocesan Board of Finance For the year ended 31 December 2021 Oplnlon We have audited the financial statements of The Bath and Wells Diocesan Board of Finance for the year ended 31 December 2021 which comprise the Statement of Financial Artivities, the Income and Expendlture Account, the Balance Sheet, the Cash Flow Statement, and notes to the financial 5tatement5, including a summary of slgnlficant accountlng policies. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, Includlng Financial Reporting Standard 102 The Financial Reportlng Standard applicable in the UK and Republic of Ireland Iunlted Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fairview of the state of the charitable companws affairs as at 31 December 2021 and of the charitable company's net movement in fund5, including the income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prartice; and have been prepared in accordance with the requirements of the Companles Act 2006. Basls for oplnlon We conducted our audit in accordance wlth International Standards Dn Auditing IUKI IISAs {UK)I and applicable law. Our responsibilities under those standards are further described in the Auditorfs respon5ibilrties for the audit of the financlal statements sertion of our report. We are independent of the charitable company in accordance wlth the ethical requlrements that are relevant to our audit of the flnancial statements in the UK, including the FRC'S Ethlcal Standard, and we have fulfilled our other ethical responsibllltles In accordance with these requirements. We believe that the audlt evidence we have obtained is sufficient and appropriate to provlde a basis for our opinion. Concluslons relatin8 to goin8 concern In auditingthe financial statements, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relating to events or conditions that, individually or collectlvely. may cast significant doubt on the charStable company's abllity to continue as a going concern for a period of at least twelve months from when the financial statements are authorlsed for Issue. Our responslbllltles and the responsibilities of the trustees with respect to going concern are described in the relevant sections of thls report. 20

IndependentAuditor's Report to the Members ofThe Bath and Wells Diocesan Board of Finance For the year ended 31 December 2021 Other Inforniatlon The trustees are responsible for the other information. The other information comprises the Information induded In the Annual Report, Ouropinion on theflnancial statements does notcover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. In connertion wlth our audit of the flnanclal statements, our responslblllty Is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financlal statements or our knowledge obtalned in the audit or otherwSse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a materlal mlsstatement In the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misststement of this other information, we are required to reportthat fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Annual Report (which includes the strategic report and the directors. report prepared for the purposes of company lawl for the flnancial year for whlch the flnanclal statements are prePa￿d Is conslstent with the financial statements: and the strategic report and the directors. report included withln the Annual Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exeeptlon In the light of the knowledge and understandlng of the charltable company and Its envlronment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the directors. report). We have nothing to report in respect of the following matters in relation to which the Companie5 Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company. or returns adequate for our audit have not been received from branche5 not visited by usl- or the charitable company financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit 21

IndependentAuditor's Report to the Members ofThe Bath and Wells Diocesan Board of Finance For the year ended 31 December 2021 Responslbllltles of trustees for the financial statements As explained more fully in the trustees, responsibilities statement set out on page 25, the trustees (who are also the directors of the charitable company for the purposes of company lawl 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 15 necessary to enable the preparation of flnancial statements that are free from material mlsstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company'5 ability to continue as a going concern, disclosing, as applicable. rnatters 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 opeiations, or have no realistic alternative but to do so. Audltorfs responslbllitles for the audit of the finan¢lal statements Our objettives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that Includes our opinion. Reasonable a55urance is a high level of assurance, but is not a guarantee that an audlt conducted in accordance with ISAS IUKI will always detert a material misstatement when it exists. Mlsstatements can arise from fraud or error and a considered material if, indlvldually or in the aggre8ate. 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-compllance with laws and regulations. We design procedures in Ilne with our responsibilities, outlined above, to detett material misstatements in respect of irregularlties, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below- Based on our understanding of the charitable company and the environment in which it operates, we identlfied that the principal risks of non-compliance with laws and regulations related to the Companies ACL 2006 and the Charities Act 2011 and we considered the extent to which non- compliance might have a material effect on the financial ststements. We also considered other factors such as income tax, payroll tax and sales tax. We evaluated management's incentives and opportunf(ie5 for fraudulent manipulation of the financial statements (including the risk of override of controlsl, and concluded that the risk wa5 low. Audit procedures performed by the engagementteam included: Discussions with management includlng consideration of known or susperted instances of non-compliance with laws and regulation and fraud; Evaluating management's controls designed to prevent and detect irregularities; Identifying and testing journals, in particular journal entries posted with unusual account combinations. postings by unusual users or with unusual descriptions. and 22

IndependentAuditor's Report to the Members of The Bath and Wells Diocesan Board of Finance For the year ended 31 December 2021 Challenging assumptions and judgements made by management In theSr critFcal accountin8 estimates A further description of our responslblllties for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/audltorsresponslbllities. This description fomis part of our audltorfs 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 auditwork has been undertaken so that we might State tothe charitable company's members those matters we are requlred to state to them In an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company'5 member5 as o body. for our audit work, for this report, or for the opinions we have formed. Adam Halsey (Senior Ststutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R IAG Date: 14 June 2022 23

The Bath and Wells Diocesan Board of Finance Statement of Financial Activities For the year ended 31 December 2021 Unr•rtrfet•d R•rtI￿ EndD Fundi t•d Jnd5 Totml Tot•1 Funds Funds NaQ• Gen•r•l n•t•d Ineam• and •ndowm•nts from Parish Contrfjbuilons Other donatlons ChAr￿ble 8ctlvlt1È5 Olher athtles Invosbnents Other Income 8,866 192 2b 1,175 V67 432 447 436 217 495 76 614 195 LIQ9 ¥314 T•t•l Inwm• •ndowmw 941 13.712 EMp•ndknr• on Ralsln8 fvnds Chatttoble adl¥itie5 Total •xp•ndltur• 219 I3.￿0 262 216 1.561 15.661 15.909 N•t 1•Xp￿d￿urn1 I In¢•m• b•lor• Inv•rtm•nt iain¥l I10sg•$1 Net Balns / Iloss•sl on Investments N•t l•xp•nditur•l l inGom• gul 12411 12851 12 f18) (2.1971 718 26 178 5.620 0,3•6 1207) 142091 12151 11071 Tr¥nrf•rs b•tyM•n lunds Is 1.733 13311 IIA021 oth•r rn¢•KnlMd i•lns Remeasurement 8aln5111055esl i)n def5ned benqftt pon51on schernes 28 1381 {681 Net mo¥•m•nt irt fvndi {w51 15461 11071 4Jl ¥,7AI 12A721 RECONCIILATION OF FUNDS Tat•l lunds brwht Total t•rrl•d forw4rd 4,288 7.166 1.874 87.835 101,163 103.635 3,685 4620 1.767 896 101.163 All activities derive frorn contlnuing activities. The notes on pages 30 to 76 form part of the financial statements. 24

The Bath and Wells Diocesan Board of Finance Income and Expenditure Account For the year ended 31 December 2021 Totsl Total 2020 Total Inwrn• 11132 11,930 Total expendlture P4•t op•ratinK •xp•nditur• for th• y••r Net gains on investments 15,576 (3W41 922 15,872 13.942 62 Net •xp•ndltur• hr th• y••r 12,522) (3,880) Other eomprehenslve Ineome: Rerneasurement losses on deflned benefft penslon schemes 11381 (4) Total compvehenshK expendlture (3.884 The income and expenditure account is derived from the Statement of Financial Activities Wlth movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing adivities. 25

The Bath and Wells Diocesan Board of Finance Balance Sheet For the year ended 31 December 2021 2021 2020 Balance Sheet- Compauy No. 139557 Not• Flxed Assets IntanBlble assets Tanglble assets Investments 17 67.453 67.201 41.W) .142 ll&657 CuThentA55ets stock Oebtcsrs Assets held tor resale Cash on deposlt Cash at bankand In hand 1325 21 1.862 21 L279 CrÈditor& amountsf811ingduewlthln oneye•r Net CurrentA5sets 146921 (5.0301 (2651 Totsl Assets LessCuTrent Liabilitles 111193 lo8￿77 Creditors: amounts lalllngdue after more than oneyear Pension stheme liabilities 16,6931 I6￿8) I￿7) NetAssets 101.162 Funds Endowmentfunds Indudlrjg revaluatlon reseNe of £J&738k12020- £18.542k) RestrbLted lrn¥mefunds Indudlng revaluatlon feserye of £622k12020- £513k UnTestrlrted In(fjme funth: General funds Includlng revaluatlon Te5etve of £aOlk (2020- E2(hlkl Deslgn*ed fund5 Includlng revaluation rE5erve of £58k12020- £22kl 9Z826 87.835 L874 3.683 4,288 7.1fj6 Totsl F￿d5 i. The Note5 form part of these financial statements. The finanoal stateme of Trustees and authori5ed for issue on Xjlthand signed on beh If o t$ weAe approved by the Board oa Rt Revd R Worsley Trustee Mr l Theodoreson Trustee 26

The Bath and Wells Diocesan Board of Finance Cash Flow Statement For the year ended 31 December 2021 2021 2020 Cash flows from operating #(tMtles Net cash used In operating artivities 15A121 13,2111 Cash flows from Investinz artivltles Dlvldends. interest and rent from investments Procee(is from the sale of- Tangible fixed asset5 Fixed asset investments Purchase of: Tangible fixed assets for the use of the DBF Flxed asset investments Net cash provlded by investln8 acti¥ltles Cash flows from flnanclng actl¥ltles Loans repaid by the DBF New Soans received by the DBF Net cash provlded by flnanclng a¢tl¥ltles 955 1.070 2.119 11.418 4,267 13.079 {2,0231 {7,1691 13,5111 111,8591 3,046 (1741 750 576 11,3491 1.087 12621 Change In cash and cash equlvalents In the year Cash and cash equlvalents at l January 14271 2,712 2.285 Cash and Cash equivalents at 31 December 1749 2.285 Recontiliatlon of net Income to net cash flow from o ratln activltles Net expendlture for the reportlng perlod la5 per the Statement of Flnanclal Artlvitiesl 12,4041 Adjustments for: Investment Igalnsl/losses Depreciation and amortisation Investment income Notional interest in present value calculation Repayment of loan5 advanced Athantement of loans Repayment of pension schernes net of rerneasurement costs Gain on dlsp05al of fixed assets Decreaselllncreasel in debtors (Decreaselllncrease in creditors Decrease in grants approved but not made (Decreaselllncrease in provislon5 Plet tash used in operatlng arti¥ities {6,5421 239 {9551 43 18 iiooi 14341 15871 107 11,0171 1161 1311 15N12) 207 223 11,0701 {391 398 12001 16191 11.0171 1194} 1.028 1241 5C(J 13.2111 27

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Notes to tlie Financial Stateinents l Accounting Policies The financial statements have been prepared under the historical cost accounting rules modified to include the revaluation of investments, and in accordance with SORP 2019. the FRS102 accounting standard and the Companies Act 2006. The DBF is a Public Benefit Entity as defined by FR5102. Investment properties are externally revalued every five years. Any permanent diminution Is taken to the income and expenditure account for the year; and No depreciation or amortisation is provided In respect of freehold investment properties. This treatment, as re8ards the DBF'S investment properties, may be a departure from the requirements of the Companies Act concerning depreciation of fixed assets. However. these properties are not held for consumption but for investment and the trustees consider that 5y5tematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the accounts to give a true and fair view. Depreciation or amortisation is onlyone of the manyfactors reflerted in the annual valuation and the amount which might otherwise have been shown cannot be separately Identlfied or quantlfied. The Trustee5 a55e55 whether the use of going concern Is approprlate. l.e. whether there are any principal uncertaintles. related events or conditions that may cast significant doubt on the ablllty of the DBF to continue as a going concern. The Trustees make thls assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the DBF has adequate resources to continue in operational existence far the foreseeable fvture. The financial statements are prepared on a going conorn basis. The principal accounting policies and estimation techniques are as follows. (a) Income All Income Is Included Sn the SOFA when the DBF is legally entitled to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy. Parish Share is recognised a5 income of the year in respect of which it Is receivable. Amounts undertaken to be paid by the pari5he5 are only accrued if either payment Is received by 28 February in the followin8 year or there has been a definite commitment to pay. Rent recelvable and parochlal fees are recognised as income of the year to which they relate. Interest and dhrfdends are recognlsed as income when re￿1Vable, in the case of dividends that is when the DBF'S right to receive the dividends has been establlshed11.e. when the distribution has been declared). Donations, grants and legacles are recognised when receivable lexcept in the case of any grant5 With pre-condr(ions of entitlement specified by the donor which have not been 28

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 met at the year end. These are included as creditors to be carried forward to the following yearl. Gains on dlsposal of flxed assets for the DBF'S own use li.e. non-investment assets) are accounted for as other income. Losses on disposal of such assets are accounted for as other expenditure. Stipends fund Income. 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 cler8y Stipends. However, the income is fully expended within the year of receipt and the legal restriction5. therefore, are satisfied. It 15 on this basis that the income and related expenditure are both included in the unrestricted column of the SOFA for the sake of greater clarity and simplicity in financial reporting. Ib) Expenditu Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to that category. Costs of ralslng funds are costs relating to the temporary renting out of parsonages and investment management costs of glebe and anyother investment properties. Charltable expenditure is analysed between contributions to the Archbishops. Council, expenditure on resourcing mission and ministry in the parlshes of the diocese and expenditure on education and Church of England schools in the dI0￿Se. Grants payable are charged in the year when the offer Is conveyed to the recipient except in those cases where the offer Is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the DBF. such grants being recognlsed as expenditure when the related conditions are fulfilled. Grants offered subject to such condition5 which have not been met at the year-end are noted as a commitrnent, but not accrued a5 expenditure. Support costs consist of central management, admlnistratlon 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 dlrectly to the activty to which they relate, but where such direct allocation is not POS5ible. the remainder is allocated primarily on the basis of head count. Penslon ¢ontrlbutlons. The DBF'5 Staff are members of the Church Workers, Pension Fund (CWPFI and Clergyare members of the Church of England Funded Penslons Scheme ICEFPSI. The pension costs charged as resources expended represent the DBF'S contribution5 payable in respect of the year. In accordance with FRS102. Deflclt funding for the pension schemes to which the DBF participates Is accrued at current value in creditors distinguished between contributions falling due wlthin one year and after more than one year. Further details are 8lven In note 28. 29

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Ic) Intangible fixed assets Computer software which is separable from the operation of computer hardware is cla55ified as intangible assets in accordance with FRS102 and is amortised to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asseys acquisition) of other software over their expected useful economic lives on a straight-line basis at a rate of 25% per annum. ldl Tanglble flxed assets and depredatlon Investment propertles Any propertie5 which are held for investment purposes and rented out have been included at their fair value. A desktop valuation is carried out annually by Greenslade Taylor Hunt. with a full valuation carried out every five years. Parsonage houses The DBF has followed the requirement5 of FR5102, in Its accounting treatment for benefice houses Iparsonagesl. FRS102 requires the accounting treatment to follow the substance of arranBement5 rather than their strlct legal form. The DBF is formallv responslble for the maintenance and repair of such properties and ha5 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 15 vested in the incumbent. The Tru5tee5 therefore consider the most suitable accounting policy is to capitallse such properties at their cost or estimated market value at tlme of acquisition if received by gift or transfer. Depreciation is not provided on the foregoing propertles listed in lil and lill above for the followlng reasons.. Any provision (annual or cumulativel would not be material due to the very long expected remaining useful economic life in each case, and because their experted residual value is not materially le55 than their orrying value. Bulldlngs are maintained in a sound condition by a continual repairs and improvements programme. the cost of which is charged to the income and expenditure account. In addition, disposals of properties occur well befts￿ the end of their economic lives and dispos31 pioceeds are usually not less than their carryin8 value. The Tru5tee5 perform annual impairment review5 in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount and any movement5 on the impalrment are reflected in the SOFA. Houses financed by Value Unked Loans The DBF holds an equity interest in a number of houses provided for separated clergy spouses financed by value linked loans from the Church Commissioners. FRS 102 requires the revaluation of loans annually to reflect the current market value of the equlty interest. Accordingly. these houses are Included at estimated market value matched by the loan value (included in long term liabilities). 30

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 iv. Other tanglble flxed assets Depreciation is provided in order to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the assevs acquisition) of other fixed assets over their expected useful economic lives on a straight-line basls at the followlng rates.. Leasehold Office buildings 1% per annum Solar PV Panels 4% and 5% per annum Fixtures and Fittings IO% per annum Office Equipment 20% per annum Computer Equipment 25% per annum Ie) Fixed Asset Investments Fixed Asset Investments have been included on the followlng bases". Listed investments at their quoted bid price at the balance sheet date. Unlisted investment5 at thelr market value at the balan￿ sheet date, as provided by the CCLA Investment Management Limited. Investment land and property is included at market value based on its existing use. It is the policy of the DBF to carry out a valuation of the investment properties every five years to estsblish market value. In the intervening period the DBF adjusts the market value in the light of information available if thi5 is material. The DBF'5 professional agents valued 100% of the DBF'S Glebe investment land assets at 31 December 2021. Gains and1055es on disposal and revaluatlon of Investments are credited or charged to the appropriate fund in the SOFA. The Diocesan Stipends Fund IDSFI and Stipends Capital Fund permanent endowments comprise assets including Glebe land, listed financial investments and unlisted financial investments which must be held as capital. The Stipends Caprtal Fund incorporates the Stipends Augmentation Trusts ISAT} fund. From 31 December 2019 the charity has operated a total return approach to the management of the Glebe land and listed and unlisted financlal Investments representing the DSF and SAT permanent endowmentfunds. Using this approach, the charity is required to analyse the funds between the arnount held for Investment and the unapplied total return. The charity is permitted to allocate, from the unapplied total return element to Income funds, such sums as the Dlrectors see approprlate provldeé the Directors exercise their Statutory duty to be even handed between present and future beneficiaries and that they maintain the unapplied total return at such a level as to ensure it remains positive after having due consideration to the volatility of the investment markets. Investments held by the DBF as Custodian Trustee are not included In these flnanclal statements as assets of the DBF but are Ilsted in note 30. (f) Stocks Stocks are stated at the lower of cost and net realisable value. 31

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 (g) Flnanclal Instruments All loans and borrowings which are basic financial instruments and- il which are due for repayment in more than one year, and ill bear interest at a rate lower than equivalent market rate, are ￿COgniSed at the present value of cash receivable I payable {including interest). The DBF discount rate of 4% 15 used which is the rate of return which can reasonably be expetted from DBF lon8 term investments, and the effective interest rate amortisatlon is included in finance revenue / expenditure in the SOFA. Equty Loans are included at market value. lhl Funds The DBF'sfunds have been grouped under the following heading5: Unrestricted Funds Unrestricted fund5 are available for any charitable purpose of the DBF. Designated funds are a type of unrestritted fund which the DBF has earmarked for a particular purpose. There are no legally binding restrictions and the DBF is free to re-designate should thls be appropriate. Restrlrted Funds Restricted funds are subject to specific conditions imposed by the donor, these conditions being legally binding upon the DBF. Endowment Funds Permanent endowmentfunds are a particular type of Restrlcted Fund which must be held on tnjst to be retained for the benefit of the DBF as a capital fund. Where the D8F must permanently maintain the whole of the fund it is known as a permanent endowment. Where there is discretion to convert endowed capltal into income it is known as expendable endowment. (l) Key areas of estimates and Judgements The preparation of the financial Statements req￿IreS management to make judgements, estimates and assumptions that affect the amount5 reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses duringthe year. However, the nature of estimation means that actu31 outcomes could differ from those estimates. The followlng judgements (apart from those involving estimates} have had the m05t significant effect on amounts recognlsed in the financial statements: Useful economic lives of fixed a55ets Other than investment properties and houses provided for clergy, flxed assets are depreciated over their useful lives taking into account residual values, where appropriate. The attual lives of the assets and resldual values are assessed depending on a number of fartors Including product life Cycles and maintenance pro8rammes. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projerted disposal values. Basis of non-depreclatlon of flxed awts Depreciation is not provided on Investment propertles and houses held for clergy use for the reasons stated above (note Idl. 32

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Revaluatlon of agricultural Iglebe) and other land The DBF carries its agricultural Iglebe) and other land at valuatiorn wlth changes in value being recognised in the SOFA. A full revaluatlon of agricultural land is completed every flve years. In intervening years approximately 30% of the land is valued annually and the average adjustment percentage is then applied to the full land portfolio, excluding land under offer which is valued at the offered sales value. Assumptions underfylng the pension liabilities The DBF has recognised liabilrties in ￿SpeCt of deficit contributions to the two Church of England pension schemes in which It particlpate5. The measurement of both liabilitie5 15 affected by a number of assumptions which are set out in detail in note 28, including dlscount rates, future contribLrtion rates and the duration of the deficit recovery period. Discount rate5 Used in NPV cal¢ulations The Board considers an appropriate discount rate to be used In NPV calculatlons is based on the opportunity cost of income foregone from investments. Recoverab116ty of parlsh loans The Board has considered an appropriate level of provision for non-recoverability of loans given to parlshes. estimating the potential shortfall in loan receipts or on-going Common Fund payments. vi. 33

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Unr•rtrS¢t•d Funds R•rtrl¢t•d End•wm•nt Tot41 Totsl nds Funa Funds 20U 2020 vo(#) E'o a•nernl Dtslent•d efth £'OOO 20 P41ishthntslbuUons p￿$b Share Current yearfs AlloEallo• Addltlonal PaymÉnts kneaFS for PreV￿u5 yea Dlscrotlonary Parlsh ShBre relief ShortFall in coNtrfEthon ,203 17 103 11521 I305 203 10.586 17 20 11521 1689) Total Parlsh sha￿ re¢elpts represent 8&9% of the allocaiion12020- 87.0%) 2b OtherDoThrtioDs AlIchU￿h￿S Tntst ndatlon of 5t Matth1•5 RME Ordinands Grant SMF Brart fU￿1r Oonation5,Gr8nts. 5pon5etshWs & Legacles 126 130 57 511 56 522 ios 492 105 S04 1.367 1,202 192 * cknrttsbleAtti¥ll Ststutoryfees chiplalnLy Incom• Coursefees and oth4r 596 432 Rental IrKome from clergy houses, scools 8Dd the Old Deanery pportsAt¥lces 369 67 374 412 35 447 17 458 S IA¥eStmrtlnwrn* Dlvldend5 rKeivgble terest re¢eNtit4e Revaluation (rf Equity Loans NrAional Interest re net prÈsoffttYaluè Rents ￿ee1Vable 224 26 67 216 512 672 io 217 398 614 384 1,10> 6 othgr Gain on dispos81 ol properties Solar PV Panel FT Income 283 195 478 1.201 195 L31 34

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Unr•slrfrt•d Funds Rqstr• Endovp T•t•l Total i¢t•d m•nt Fund• Funds ¢knernl nated Funds Funds 2021 2020 £'ODO ¢000 £'OIX) V(IID VOOD 7 Coju ol r•lJlne fufid• Stockbrokerfs fee5 Value Unked loans Interest Interest cost & expense& penslon 5thèmÈs Glebe Land & ClerBY Houses letting costs 23 li 43 12 io 21 175 175 171 219 248 Ch•ritsbl• •etivitl•s Cortrlhutlon to Ar¢hblshow' Coundl Training for Mln15try National Church Re5ponslbllhle5 Grants and provlslon5 Mlsslon Agency penslon contrlbutlons Retired Cler8y Housing ICHARMI & Grants Poollng of txdlnand candldates. costs 393 274 34 18 393 271 58 274 144 141 31 31 882 Rwgur¢inE Minirtry •nd MiMi•n Parish Ministry.. Stlpends and Soclal Securlty Penslon contrfbutlons Houslng costs Removal. resettlemènt and other grants Other expenses 5A67 114 5.581 5.286 1,540 1.246 1,664 1.941 IA69 195 273 237 iii 4855 3A51 38 352 248 1,151 96 9,207 8.806 4,850 5A97 Support for mlnlsty Fund for thurch Gr￿h 12} Z46 1.503 (2 io 14,055 14.313 Eyndltur• on £du￿tIOn urch Schoo15: AdmTnistration 350 58 466 15 57 15,661 35

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 UnMrtrl6tsd Funds T•til Total l¢ted ffl•￿ Fundi Funds a•n•v•l n•tsd Funds Funds 2020 eow• £ThO eth)0 eooo ro 9 Gatnsl(lol￿S) Inv•stm•rtAM•ts Unmlised 8alnslllossesl after revaluatlon I'l Re8115ed gainsllloss•sl on dlsPQsal 585 178 U34 3,32J 3.OB6 3,219 178 5.620 6 542 133 18111 12071 {'? Includes £0.9m galn In relation tv the revaluat]on of Glebe A8rfuJlbJral Land IK120- £0.Iml. 10 An•lWs Of R•sOur￿$ Fxp•od•d In&ludln8 Alluration Of Support Co Qrnnt AÈ*Mtl•b und•rtak•n fundln8 •1 Support Total Dlr•etly •otl¥it Total 2020 Ralsln8 Funds Ch8rMAble Artivitie& Contslbvuons tts knhb￿h¢JpS' Councll Resourclng ministry and m1551on Educatlon FW A55el Impaimient 262 248 393 501 717 1.105 14.059 14314 466 881 12.233 3&J 1218 1153 15619 15.909 Urtr•strl4t•d Funds Re5tr- Endaww Tot•1 Total D•sltr i¢¢•d m•nt FundA Funds G•n•ral nated Funds Fund• 2021 2020 ¥(MJo WOOD eooo e&)D £'o(h) L076 1,076 L135 51 11 Analyii Ofsupport Costs Central Administratlon Support for Schools Govemance: External Audit Professlonal Fees Dlocesan and General Synod Expenses 15 17 17 1153 1.215 36

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 12 Analysis of Grants Made Totsl Grants to Total Inst- 2021 2020 Indlvl- Itutlonal duals Grants No. of Grants a) Natlonal Chur¢h Responslbllltles From Unrestrlcted General funds to:_ £'ooo £'ooo £'ooo 275 275 271 393 393 393 34 58 Archbishop5' Council, General Synod, etc. Training Ordinands Grants and Provision5 Inter-dioce5an 5UPPOrt of Mlsslon Agency clergy pension contributions 18 145 31 18 145 31 894 15 141 CHARM National Pooling adjustment 882 bl General Grant5 From Unrestricted General Funds to:. Ordinands in training Somerset Churches Together Bath and West Show Tent Other Miscellaneou5 Grants Less grants no longer required 23 284 269 25 290 279 From Restrlrted Funds to: Zamblan Dloce5es Clergy Ilncludlng retSred and clergy widows) 22 li 33 22 li 33 li li Iz Total Grants Payable 42 317 900 1.218 1.172 37

The Bath and Wells Diocesan Board of Finance Notes to the Financkal Statements For the year ended 31 December 2021 13 Trustees and Related Parties In 2021 the trusts which are administered from the DBF'S registered office paid management charges of £4.496 to the DBF12020- £4.4961. The Rib Trust made a grant of £37,500 to the 8oard12020- £37,500) toward5 the Archdeacon working costs. The Foundation of St Matthias made a grant to the Diocesan Board of Education of £56,C4)012020 - £56,000} towards the work of School RE Advisers, Resource Centre and Further Education development. There were no amounts outstanding at the current or prior year end. TNstee< Emoluments No trustee received any remuneration for servlces as trustee. 712020-91 were reimbursed wlth a total of £8,25412020- £6,968) for the cost of travel and subsistence incurred in the course of services performed as a trustee in respect of General Synod duties. duties as archdeacon or area dean. and other duties as trustees. 38

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 202 1 13 Trnstees and Related Partles {contlnued) Stipends and other benefits received by tru5tee5 in respect of their capacities other than trusteeship. serving as ecclesiastical office holders through the Church Commissioners {at the expense of the DBF unless indicated) were: Off1￿ Hold•r 1ndh￿dUal Stip•ndi•ry package Fund•d by th• thurch COMMI￿10￿•￿S. stipend & defined beneflt penslon scheme Lmng accommodation & car for offici81 use Fund•d by th• Chur¢h Commlsslon £37.670 stlpend, car lor offldal use Deflned beneflt penslon scheme Fund•d by th• DBF. Livl acC￿lMOdatIon The Blshop of Bath And We115 The Rt Revd P Hanco £46.180 The Bishop of Taunton The Rt Revd R Worsley The Ven S Hill The Ven A Gell The Veys Dr A Youlngs £36,830 stlpend Dellned beneflt penslon scheme Uving accommod8tlon Archdeacons Revd M Andrew5 Revd C Shaw Notice Revd D Keen Fr J Laurence Revd J H851am Revd R Miles Revd R Driver £27.220 stipend Defined befiefit penslon scheme Llvlng accommodatlon In total 1112020- 10} trustees recelved stlpend5 and pen51on Contribu￿On5 a5 follows: 2021 2020 Stlpends Pension Contribution5 301.030 107,837 408,867 299.$48 105.719 405.267 The value of church provlded houslng In 2021 to the clergy and blshop5 cannot be estlmated. 39

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 14 Staff And Offlca holders 20 2020 Staff costs during the year were as follows: Wages and salarles Stlpends of ordained Staff members National Insuran￿ contr1E￿tIOnS Pension costs 2,336 216 210 245 250 4914 2,796 Durlng the year. the DBF made temilnation paJw4ents In respect of nlne members of staff 12020- 11 totslling £63￿12020- £3,186). This amount Is Induded In staff costs abm. The average number of employees during the year WAS: Lay Workers Mlsslon Support and Mlnlstry Development Other support servlces Educatlon No. 37.3 32.2 13.5 3&3 35.8 15.7 919 The average number of empIty￿ during the year, based upon full-tlme equivalents. was: l ) Lay Workers Mlsslon Support and Mlnistry Development Other support seThlces Educatlon 2&5 2&2 12.1 27.5 27.6 69 (') Indudlng 1.712020- 1.71 stsff whose time was rechar8ed orfunded by external organlsatlon5 72.2 Of the avera8e number of employees. 59 wpre based In the Dlocesean ottlce (2020- 691. 13 were based in other locations12020- 11) and 16 Y￿re based In Parlshes and DÈanerles {2020- 131. missil￿ supp￿ and Minlstry Development Is made up of three tearn& Deanery and Parlsh support, Mission Development and Minlstry Tralnlng and Fonnallon. Other support services is made up of seven tÈams: Communlcatlon5, Faclltties. Finance, HR. Property. Safeguarding and Secretariat. Education Is made up of three teams: Schools Organlsation, schools Effectiveness and Growing Falth and Everyday Falth. The numbers of staff vthose emoluments Ilncludin8 beneflts in kind but excluding penslon contrlbutlons) arn￿￿nted to more than £60,oIY) were as follows: 2020 £60.001- E70,(110 £70,001- £80,OIX• Penslon contrlbutions of £13,0561202fr. £14856) weFe made forthese employees.

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 14•St•ft Costs (co￿lnU•dj R•mun•r•tlon OF K•y M•n•z•mqnt P•rwnn Key managemert PW50nnel are th05e deernpd to be those hawlng authgrtty and responslblllty, delegated to them by the tTUStees. for plannong, dlrerting and controlling the actiwtres of the dlocese. Durlng 2021 they werè: OH1¢• Hold•r O, Diocesan Secrètsry and Company Secretary Sharon KInd1￿￿desIto 30106/211 Interlm Dlocesan Secretary and Comp8nySecretsry Rosemary Pearce Ifrom 16liiJ211 He8d of Frnonce and Operatlons Matthew Plnnock Head of Strate8lC Programme Dlrector of Educ4tion Revd ChaAie Peer to 3V08121 Edward Gregory HÈ8d of Mlnlstsy fc m5s51on10.2￿El Head of Mlsslon Support gnd Ministry Development Revd Jone thamberlaln1to 311071211 Revd Charlle Peer fmm 01109121 RRmun•ra¢lon, penslon contrlbutlons and expÈnsès for 513.7 (2020- 51&2 FtEII key management personnel wère •s follows: 2021 2020 Salarie51 Stipend5 National Insurdnce eontributions Penslon ContrSbutlons 235 28 24 274 33 27 333 Expenses 41

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 14b Office holders 2021 FfE No. 2020 Office holders not employees The average number of stipendiary clergy holding parochial. deanery or archidiaconal posts In the diocese was: At a cost of: No. 189 £'ooo Stipends & Houslng Allowances National Insurance ContribLrtions Apprenticeship Levy Pensions contributions S,2 417 24 1,532 7,173 4.922 394 22 1,236 6,574 The number of FTE stipendlary clergy in 2021 and 2020 has remained static despite an average decrease in vacant post5, as it'5 been offset by commenced reductions in stipendiary posts. The average level of vacancie5 in 2021 was estimated at 2612020- 29.1), being 12.5% of all posts12020- 13.3% of all posts). Unr•%triGt•d Funth endow- i#t•d mènt Funds Funds £'(#)O £'•Joo £'OOO IS Anbpl 01 Tr•nsl•rs B•ttY••n Fund• Trander b•twMn unr•strl¢t•d •nd desi8nDted lund Transfer from Tanglble Fixed Assets fund Transfer ot house5 to par50na8è 5tabJs Unapplied totsl retum drawdown 331 13311 1.402 1.713 1,402 (IM02) 331 During the past two years. Pastoral reorganisations and changes In Incumbents, has resulted in some properties bein8 reallocated to be parsonage properties, this has resulted In a transfer being made in this yearfs accounts from the permanent endowment fund to the expendable endowment fund of £926K. 42

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 $gftwar• 16 Intanzlbh Flx•d Asxts At l January 2021 Addltlons At 31 Deeember 2021 166 166 Amortls•tlon At l January 2021 Charge forthe year At 31 Dttember 2021 165 165 Nrt baok v•lu• At 31 DK•rnb•r 2021 At 31 December 2020 Freeholdl Leasehold Solar PV Land and Panels Bulldlngs £'ow fo 66,469 739 2,022 11,5321 66.959 Office Equlp't 17 Tanglble Flxed Assets Totsl Cost £'ooo 1,262 £'ooo 68N711 2,023 11,532) 68,961 At l January 2021 Additions Disposals Al 31 December 2021 739 1,263 Depreciation and Impairment Depreciation at l January 2021 Impairment at I january 2021 Depreeiation charge for year Dlsposals At 31 December 2021 27 714 240 555 714 27 32 239 272 Net book value At 31 Detember 2021 66,191 467 795 67A53 At 31 De￿rnber 2020 65,728 499 974 67,201 43

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 2021 2021 2020 Freehold / Leasehold Land and Bulldln2s Freehold Benefice property: No. £'(M)O Parsonage houses 169 41,527 41.LY)8 Glebe property: Curates, houses Other houses 28 28 8,164 7,178 15,342 7,352 7,755 15.107 56 Corporate property: Curate< houses Other houses ouses bought with val. linked loans lat valuation) Edginton house 563 5.291 523 281 563 5,555 523 281 6.922 21 27 6.658 Leasehold Long leasehold Total Freehold / Leasehold Land and Buildings 2.691 65,728 254 66.191 School Lqnd & Buildings School Land & Buildings 121 All of the properties in the balance sheet are vested in the Board, except for benefice houses which are vested in the incumbent. 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 extinguSshed. These are stated at valuation. as is the related loan liability (note 221. Of the total land and bulldlngs at 31 December 2021, 251 properties1£65,668k} are valued at C05t or deemed cost12020 - 2521, and three properties1£523kl at valuation {2020- three). Properties are subject to a five-year cycle of suNey and consequent repairs are charged as expenditu￿. During the year no bulldings were impaired. Whe￿ their market value wa5 estimated to be below their cost.

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 UnllJt•d LIA•d rk￿kUrnI LAnd& lThv•str Inv• Land Prop•rty m•nts m•nts 2021 eooo £'ooo £Y#Jo eooo 639 7.150 14.422 41J41 4.2n 2,897 7,169 (4201 13.4691 (7,9991 T•tsl 181 fix•d As5•ts l•wstm•nts At l J•nu•ry 2021 Addltlon5 Disposals Transfers l Reclasslflcallons Revaluatlon At 81 D•o•mb•r 2021 19,730 13221 879 418 1,796 3,093 7,632 15,646 44.204 539 frjotknovm Notthown 4146 13A18 Notknown Notknown 4146 13.n9 Cost et 31 December 2020 Invwtm•fits •gmprlM:" Llst•d Inv•stmgnts IEqultl•sJ UK Investments NorFUK Investmertts 2021 2020 4.022 8.517 7,556 4543 11.558 LlJt•d Inv•stm•nts (Unlt Trusts) UK Imostments a63 182 List•d Investments (Fixed Int•r•5t) UK Investments 1141 598 2,740 2.276 405 Non-uk Investm&nts 2.682 Urtd Inv•stments Total 15,646 14422 1111) Unllrt•d Inv•5¢m•nts 2,452,867 Central Board of FSnance of the church of En8land Property Fund share512020- 3.25L2231 33L974 Central Board of Fin8nce of the Church of En8land Investment Fund Share (2020- 149,5671 VQCA) fOOO 4207 7.549 2.868 3.139 COIF Charity Inve51Jnent Fund Income ShaFes12020- 3.139) 2,0(Q Central Boarij of Flnance of the Church o* England Flxed Interest Fund Shares121720- 2.CQOI Somerset Savln85 and Loans Ltd 57 15 15 7.150 Ilvl Othv Land and Prop•rty 20 2020 £'wo £'o 610 610 29 29 Glebe Property Other Land 639 45

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 18b Appllcatlon of the Power of Totsl Return on Investments As disclosed in the Investment policy of the Tnjstees report from 31 December 2019 the DBF adopted a total return approach to investments with regard to the Glebe land, listed financial investments and unlisted financial investments portfolios of the DSF and SAT permanent endowments. The investment power of total return permits the DBF to invest the permanent endowment of the Diocesan Stipends Fund IOSFI and Stipends Augmentation Trusts ISATI element of the Stipends Capital Fund in order to maximi5e total return and apply an appropriate portion of the ur)applied total return IUTRI each year. Until the power is exercised to transfer a portion of the UTR to income funds, the UTR remains part of the permanent endowment. The initial value for implementing total return for investments was determined at 31 De￿mber 1995 and valued at £8.571m and £0.688m for the DSF and SATfunds, respectively. This was the amount held in Glebe property and listed and unlisted financial investments at thi5 date. The UTR was calculated as at 31 December 2019 and valued at £19.457m and £0.331m for the DSF and SAT funds, respectively. This represents the increase above inflation of the value of these investments since the initial valuation, adjusted for the introductlon of any new investment In the portfolios since initial valuation. Trust hr (11 DIoc•AaTh Sllpenth Fund I At lrt J•nu•ry 2021 Base value of pemjanont •ndovmient Unapplled Total Return Totsl 13.758 13.758 19,141 32.899 19,141 19,141 13.758 Mov•m•nts In th• rnprttni ￿riod Indexatlon of base levèl of endowment Unapplled t¢>tal retum allocated to Incom In th par Additlonal UTR 8lloEakd for purthaseof pr¢Jperty lwesbnent return.. di¥idEnds and Interest lThvostmert retum.. Glebe rents IRve5tment RÈallsgd and unrealised Salns and IIDssesl Le55 In¥e51mèit m8nagennt ¢osts Totsl 660 16601 11.3101 11.3101 189 398 5.177 37 756 398 5.177 371 At 81rt D•¢•mb•r2021 Base ol the peTh8nent endow￿)ent Unapplled Totsl Aetuin Totsl 14A18 14.418 22.897 37.116 21897 During the year, there was a transfer of £1,310K from UTR to income fund5 for expendlture in relation to the Diocesan Vision, in line with the Diocese Total return policy of 4% of average endowed investment value plus Glebe rent5. 46

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Trurt lor In¥•rtrn•rt Tot•1 Endowrn•nt INI Stlp•nds A￿M•*￿tIon ISA71 At tstJ•fflu•ry 2021 B45e value of perman•rt enthmnerrt Unapplied Totsl Retum Totsl 1,104 256 256 256 1.360 1,104 Mw•ffl•nts In th• rnportlnl p•rtod Indexatl¢)n trf b45e level of pndov•ment Unapplied tthal return allotthd to income in the yejr I1n￿orht return: dfvideNd5 gnd Intevp5t Inveskngrt r￿t￿ll5: Rea1I5ed and unreallsed 8alns and Ilossesl Less Inveslrnert mèna8Ernert costs 53 {531 (5BI 27 162 1581 27 162 At 81rt D•••mFA•r2021 Base of the pennanent endowment Unapplied Totsl Return Total 1.157 1.157 327 327 327 1.197 Duringthe year, there was a transfer of £58K from UTR to Income funds for expenditure in relatlon to the Diocesan Vision, in line with the Diocese Total return policy of 4% of average endowed investment value. 47

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 2021 2020 19 D•btor5 Du• within on• yur al Parlsh sharè bl Central Board ol Flnance Deposit Fund Lo8ns cl Loans to PCCS from De51gnated Fund or FCG dl School Loans el Other Loans dj Closed School Expenses and other School debtors Other Debtors and Prepayments g) Equity Loans 324 99 15 68 221 99 15 70 41 39 868 1.806 Due after an• y•ar bl Central Board of Flnance Deposit Fund Loans I'l cl Loans to PCCS from Desi8nated Fund or FCG I'l el Other Loans 137 362 137 382 519 Totsl debtors 2,325 I") these amounts are stated at net presentvalue uslng a dlscount rate of 4% Debtors Notes: la) Parish Share Parish Share debtors comprise balances of requested contributions outstanding which have been paid in full after the year end or where an arrangement to pay has been agreed. {b> Centrdl Board of Flnance Deposit Fund loans These are loans made by the DBF from the CBF Deposit Fund underthe Church Funds Investment Measure 1958 for forward lending to parishes and are therefore shown both in Debtors and Creditor5. Loans are normally provided for a period of five or ten years and are repayable by equal annual in5talments. The rate of interest 15 equivalent to the monthly average rate declared by the CCLA CBF Deposit Fund plus 0.55%. (cl Loans to PCCS from Dlocesan Loan Fund These are loan5 advanced from the Elm designated Diocesan Loan Fund repayable over various terms up to 20 year5 and at variou5 interest rates. 48

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 At 310ecember 2021, the significant balances were: I. A £400,0(K) loan was provlded to Nailsea Holy Trlnlty PCC on 28 October 2010 for the purchase ofthe former rectory at 2 Church Lane Nailsea upon its sale by the DBF. The rate of interest on the loan is 1% above the Bank of England base rate, payable nnually in arrears. The term of the loan was extended in 2015 to Ortober 2024. The loan is repayable in varlable annual instalments and the present value of the balance at 31 December 2021 was £68.038. The DBF holds a legal charge on the property. dlscharged upon repayment of the loan capltal and accrued 5ntere5t by the PCC. ii. A £225,000 loan was provided to Keynsham PCC on 23 November 2010 for the purchase ofthe former rectory at l The Park, Keynsham upon Its sale bythe DBF. The term of the loan was extended in 2017 to the end of 2034. The rate of interest on the loan is 2% above the Bank of England base rate, payable annually in arrears and the presènt value of the balance outstanding at 31 December 2021 was £57,614. The DBF holds a legal charge on the property, dlscharged upon repayment of the loan capital and accrued interest by the PCC. A loan of £290.000 to the PCC of Heathfield with Cotford St Luke, provided through a back- to-back arrangement with Natwest bank. and as such there is a corresponding creditor (see note 22}. The rate of interest is 1% above base rate and the term of the loan is five years. The loan is secured using a second charge on land at Cotford St Luke and Its associated assets. Thls loan had an outstanding balance of £279,342 at the year end. (d) School Loans The DBF acts as 'banker' to school 8overnors for capital and repair works at voluntary aided schools. The accounts are paid by the DBF and the costs are recovered from the Department for Education, the Local Education Authority and the governors themselves for their respective liabllitles. le) Other Loans This amount includes loans to individua15 from restricted charitable funds and staff car loans. (fj Other Debtor5 and Prepayrnents This figure is made up of sundry debtors, prepayments, accrued interest and dividends, rents recoverable and expenses on closed s¢hoo15 to be recovered upon sale. and accrued bond interest. (g) Equlty Loans Equity loans are made to retired clergy and clergy spouses to enable them to purchase propertyon a shared equity basis. At 31 December 2021 the value of loans advanced amounted to £485,007 In respect of three propertles, 2021 2020 20 A￿•ts h•ld for r•kilg aosed churches awatting disposal The Yalue represents an estlmate of expected sales prooed5 recelvable. 49

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Unrostrlrted Fund5 21 C4shat bankand ondep05it Funds Totsl Totsl e(m e( li 1274 678 Cash on deposit Cash at b8nk and in hand Ca5kn held by brokerfor Imiestment Cash held In sollcltor5' dIentge￿unt 363 L279 328 S2 L275 1749 20a 2020 ¢000 £'ooo 22 Cr•ditors e wlthin on• year al Bank loans Fund for Church Gro￿ grants approved not yet paid Closed Church Schools Bank revolvlng Cfedlt faclllty Provisions Other Credltors and Accruals 170 170 35 51 492 500 4750 2,000 21 27 2.282 5.030 Du• aft•r on• year al Bank loans bl Central Board of Finance Deposlt Fund loans (') c) Value Linked Loans 5,295 875 52a 5,464 821 523 6.808 ( ) thesè ame￿nts are ststed at net present value uslng a dI￿ount rate 014% Credltors Notes la) Bank Loans The DBF took a loan with Natwest to fund the investments in PV panels in April and June 2013. Interest currently charged at 1.5% above base rate. A £200,OtN) loan was taken out with Natwest bank In 2016 to finance a house purchase. The term of the loan is 10 years, at a flxed interest rate of 2.67%. A further £170,000 loan was taken out with Natwest bank in 2016 to finance a house purchase. The term of the loan is 10 years, at a fixed interest rate of 3.73%. During the year, there were a number of loan agreements wlth Natwest bank: Pioneer House mortgages. Four loan agreements are entered into in order to flnance the purchase of houses for Pioneer Ministers. The terms of these agreements are each either 50

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 five or six years . These loans are secured on the ploneer houses. The balance outstanding at the year end was £768.330. Flourish House purchase. A loan of £2,575,000 was agreed to fund the purchase of Flourish House, the new DSocesan office building. The term5 of thi5 agreement 15 seven years and the interest rate 15 1.53% above base rate. This loan is secured on the Old Deanery and Flourish House. The balance outstanding at the year end was £2.541.819. Flourlsh House development. A further loan facillty of £1,400,￿0 was agreed to fund the internal fit-out of Flourish House. wrth a term of tsvo years, which has been extended 12 months and an interest rate of 1.8% above base rate. At the year end £1,400,000 ofthis facility had been drawn down. This loan facility is partly secured on the Old Deanery and partly unsecured. Parish loans, A loan of £290.000 wa5 agreed in order to provide an onward loan to the PCC of Heathfield with Corford St Luke Isee debtors note 191. The term of this loan 15 five years and the interest rate is 1.65% above base rate. During the prior year, this loan has had a capltal repayment holiday applied to it, extending the loan period for a further nine months. This loan is secured by wayof a third party charge on St Luke's Centre on land at Cotford St Luke. The balance outstsndlng at the year end was £264,313. Ib} Central Board of Finance Deposlt Fund Loan This loan was made to the DBF from the Deposit Fund under the Church Funds Investment Measure 1958 for forward lending to parishes. In 2016 £lm was loaned tothe DBF for 10 years on an interest only basis to allow loan funds to be committed and available to be drawn by parishes when required. The present value ofthis loan was £875,282 at 31 December 2021. The rate of interest is equivalent to the monthly average rate declared by the CCLA CBF Dep051t Fund plus 0.55%. Icl Church Commissionerf Value Unked Loans The loans are repayable either when the houses concerned are sold or cease to be occupied by licensed lay worker or clergy spouse whose marriage has broken down. Interest Is charged by the Commissioners on the amount loaned inltially and borne by the DBF, rising annually by the increase in the Retail Price Index. In 2021 the interest rates charged on the loans ranged between 2% and 6.9%12020- 6.9% and 8.4%) The loans are represented by Freehold land and bullding5 (note 171. The Dlocesan Annual Report and Financial Statements Guide recommend5 that the loans should be revalued annually In line with the basis adopted by the Church Commis5ioner5. The recommendation ha5 now been adopted by the DBF and the correspondlng fixed assets (see note 171 have been revalued as a separate identifiable asset class. 51

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 At R•val- At Income Ituv• Trnnsf•N uatlon 811￿/21 eooo vooo eOOO £iCM)o e0￿ £'ooo 2a Summnry (K Fund Movem•rrt¥ Unr•stri¢t•d Funds (al General Ibl D10c￿an Stipends Fund Income 4,141 10.727 113,81SI 1.733 147 124 1911 4,288 14851 (11.906) &733 717 3.501 717 DMiinat•d Funds lel Tangible Flxed Assets Fund (dl Loan Fund (el Fund lor Church Growth (fj Pastoral Care & Counselling Scheme (gl Mlsslon Development ￿nd (h) Other Deslgnated 5.077 (271 13311 4,719 45 47 187 {281 (1931 26 656 7,166 1246) (3311 Tat•l u￿r￿￿¢t•d Fund$ 14454 lo￿￿ 114,152) IJ02 743 10,303 Notes on Unrestricted funds lal General Fund The General Fund resenrfe represents those assets held by the D8F for carrying out its general activities. It provides the assets and liquidity for the DBF to carry out its objectives, including statutory compliance, administration of funds and some housing. (b) Dlocesan Stipends Fund (DSF) Incoffle Account is governed by the Diocesan Stipends Fund Measure 1953. Income is derived from cash and Investments lincluding glebel representing the Diocesan Stipends Fund Capital Account. It is used to augment the stipends of incumbent5. {c} Tanglble Flxed A55ets Fund represents the value in the Balance Sheet of: Board houses kept for the purpose of housing current and future clergy; solar PV panels on clergy house5 and office equipment: less creditors held for the specific purposes of financing these assets. Id) Dlocesan Loan Fund £lm was transferred to this fund in 2014 to allow parishes the possibility of applying for loans to assist with thelr capital projects and other initiatives. (e) The Fund for Church Growth IFCG) exists to support local mission and outreach In the diocese. {fj The Pastoral Care and Counselling Scheme was set up in 1993 to provlde trained therapists and counsellors to support clergy and their family in the diocese. (g) The Mission Development Fund exists to resource the developing strategy into the future and to enable applications to the National Church's Strategic Development Fund. (h} Other designated funds consisting of amounts designated from the General Fund to be spent on Specific projects by departments. S2

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 At Exp•nd. Revol- At OU01121 Incom• Iture Transf•rs uatlon a1112121 23Sumffl•ry0FFundMoY￿ £'OOD VIJOO eoL¥) £iKI £'QOO £'OOO (oDntinu•dl Restrf¢ted Funds (al Schools Income Fund {bl DI￿eS4ft Pastoral Ac¢ourt Icl Support ¢)f derBy and depEndants Idl Retlred clewyfunds .lel Porlock Wyld Trust lfj Ed8inton Trust 181 Zambia Llnk Ihl Modem Sl¥¥ery Ilnk 111 Smith Bequest 01 D8E Restrtcted Grants Ikl Abbey HOUSÈ Fund {11 Strategic Development Fund '(ml Beneflce House5 ,Inl Other Restrlcted Total R•Str1•t￿ Funds 297 52 11421 11791 107 314 126 217 21 53 68 78 167 178 257 133) Iii) 113 227 3n 46 414 32 63 402 14021 757 17591 115591 871 1276 179 1.767 Notes on Restrirted Funds: The income funds of the DBF include restricted funds comprising the above unexpended balances of donatlons. grants and Investment Income held on trusts to be applied for specific purpose5. la) Schools Income Fund which may be used forthe same purposes as the Schools Capital Fund (see Expendable Endowments) and may also be used for any of the following: The provision of advice. guidance and re50urce5 for the management of or education in any relevant school in the diocese. The provision of seNices for the carrying out of any inspection of a school in the diocese required by Part l of the School Inspection Act 1996 To defray the cost of employin8 Staff in connection with the application of income of the relevant trust a55ets for the above purposes The application of capital or income of the relevant trust assets for any purpose referred to in paragraph l of Schedule 36. By virtue of section 557{101 of the Education Act 1996 a relevant school Includes an Academy Ib) Diocesan Pastoral Account {DPAI made up from the sales or transfer5 of churches and parsonage houses whlch have become redundant under pastoral re-organisation. The purposes of the fund are laid down in Sections 93 and 94 of the Mission and Pastoral Measures 2011,. the main ones being Costs incurred for the purpose of the Measure except for salaries of regular diocesan employees. 53

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Costs of disposing or maintalnlng houses or churches vested iti the DBF or Commissioners. For the benefit of another diocese or transfer to the DSF Capital or Income Fund. (c) Support of Clergy and Dependants Funds are revenue funds made up oftrust income and donations specifically given for the relief of clergy. their widows and dependants. (d} Retlred aer8y Funds to be used to provide assistance generally to retired clergy. (e) Porlock Wyld Trust being accumulated income to be used for the same purposes as the trust capital - see Endowment Fund5 (n Edginton Trust being accumulated income to be used in the maintenance of a residence for retired tlergy. Igl Zambla Llnk including the Coppen bequest, which was given to strengthen the link between the diocese and the five dioceses in Zambia. Ih) Modern Slavery Link, which was given to put towards projects which focuse5 on dealing wlth issues of modern slavery across the diocese. lil Smith Bequest to be used for lay ministry lexcluding tralning for the Ministry) and in-servi clergy training. li} DBE Restrirted Grants conslstlng of the balance of restricted grants and donations to the DBE. {kl The Abbey House Fund to be used to give support to both lalty and clergy to enable them to attend retreats and quiet days. (i) strategic Developmenl Fundlng being funding received from the national church. (m} Other Restrlcted consisting of the balance of restrirted legacie5. grants and donations to the DBF. 54

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 At Expen Reval- At /oy21 Incom• Stur• Transf•rs uatlons 31112121 £'OOD £.0[￿ £XW VOOO VOOD £'O 23 Summary of Fund Mov•m•nts (Mntlnu•dl Endgwrn•rt Fund• Exp4nd•ble Endowm•nt la} Par50nage Houses Fund Ibl Schools C8pitsI Fund Ic) Porlock Wyld Twst Idl Retlred Clergy Fund5 40.613 661 927 41,540 661 130 19 316 161 927 r•4 44711 P•rm•n•nt Endowm•nt le) Dlocesan St1p￿d5 Fund Capitsl Stlpends Cap￿1 (fj General Capital lfj Support of OrdiRand5 18) Crokat and CovAey Trnsts Ihl Edginton Trust (tl Other Permanent Endowmert 43,297 1.402 781 855 (311 (2.237) {5) 1921 5.139 47,1)23 232 L492 146) iii 162 24 370 405 61 69 46.115 1361 14329) 5,555 51115 1361 (I402) 5.619 92.826 Totsl Endowm•nt Funds All Funds 101,163 12,941 (15,747) 6.541 IOV96 Note5 on Endowment Funds: Endowment funds are held on trust to be retained for the benefit of the charity as a capital fund. Where the whole of the fund must be permanently maintained it 15 known as permanent endowment. Where there is power of discretion to convert endowed funds into income, the fund is classified as expendable endowment. Expendable Endowments (a) Par50na8e Houses Fund represents the value of beneflce houses at the Balance Sheet date, together with the Parsonage5 Building funds held by the Church Commissioners. The houses are used to provide accommodation for the parochial clergy. The diocese is not free to dispose of the houses except in accordance with the appropriate measures. There is provision for the net proceeds of sale to be applled to elther the DPA or DSF capltal once a disposal has been effected. {b) Schools Capltal Fund comprises redundant Church of England school premises. teachers, houses and associated endowments which have been vested in the DBF by Orders under the Education Acts 1944 and 1973. The use of the fund is restricted under Section 17 of the Education Act 1993. The use5 include the purchase, erection, maintenance and improvement of any school or teacheff s house in the relevant area. 55

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 (c) Porlock Wyld Trust relates to the Parsons Hlll Estate (since sold) was left to the DBF, as sole trustee, "upon trust for such charitable purpose5 connected with the ecclesiastical parish of Porlock as the Lord Bishop of Bath and Wells in hi5 absolute discretion thinks flw. There is no restrictlon on expenditure of capital. (d} Retired aergy Funds: Thatcher Trust is to be used for purchase {or repairl maintenancel of accommodation for retired clergy or the widows or au8mentation of income for such persons. Balance £43,253 a5 at 31 December 202112020- E37,840}. Elwell Trust is to be used for the grant or augmentatlon of pensions to retired clergy at any time beneficed in the diocese. Balance £11,133 as at 31 December 202112020- £11,133). Edwards Trust relates to a property which was glven to the DBF in 1977, as sole trustee, to be used for the accommodation of retired cler8y in the diocese. The property was sold in 2002. A resolution was made by the DBF in April 2000 to modify the purpose of the Trust to provide for cler8y houslng generally. Balance £306,279 a5 at 31 December 2021 12020- £267.0951. Permanent Endowments Ie) Diocesan Stipends Fund (DSF) Capltal Account represents the value of glebe property and investments at the balance sheet date, less any inter-fund debtor or creditor. The account is governed by the Diocesan Stipends Fund Measure 1953 as amended by the Endovments and Glebe Measure 1976, the National Institutions Measure 1998, and the Miscellaneous Provisions Measure 1992. Income arises from the sale of glebe assets, the transfer of parsonage sale money, transfers from the DSF Income Account, as well a5 gifts, bequests and donations. The main function of the fund is to produce income for the stipend5, but it may also be used for other purposes Including.. acquiring glebe property,. investing in a subsidiary.. developing and protecting glebe amenities; investment; discharging loans and levies on glebe- improving parsonage houses and discharging any loans made by the Church Commissioners under the Endowments and Glebe Measure 1976. (f} Stlpends Capital, General Capitsl and Support of Ordinands These funds are made up of the Capital of a number of trusts which are represented by fixed asset investments. Stlpends Capltal income is restritted and can be used only to augrnent clergy stipends. General Capital income is unrestricted and is credited to the General Fund. Support of Ordinands Fund income is restricted and can be used only to train candidates for Church of England ministry. (gl Crokat and Cowley Twsts comprised two properties which were left to the DBF for the purposes of providing accommodation for retired clergy of the Church of England. One property was sold in 1997 and the other in 2001. A resolution wa5 made by the DBF in 2001 to modifythe purposes of the trusts so as to make provision instead for assistance generally to retlred clergy. (h) Ed8lnton Trust comprised a property for use a5 a residence for retired clergy. This was sold in 2001 and a replacement house was purchased in 2004 at Friary Close, Clevedon. 56

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 {1) Other: Mlss S M Osborne Trust- £1,000 was left to the DBF, as 501e trustee, to apply the income "bv way of grant in or toward5 the repair of fabric of any ancient parish church of h15toric interest and beauty in the diocese" Balance £1,584 as at 31 December 2021 12020- £1,696) Dorothy Stuckey Trurt - £2,000 was left to the DBF. as sole trustee. to apply the income for upkeep of fabric ofthe parish church at Yatton or toward the maintenance of an assistant clergyman or both. Balance £23.629 as at 31 December 2021 {2020- £20,6721 Mlss M A Rees-mogg Le8acy- The legacy dates from 1935 and the incorne only can be Used for the assistance of necessitous clergy and their widows and orphans. Balance £46.977 as at 31 December 202112020- £41,097). 57

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Tani. & Int•ry. Inv•rt Othr •d AM•t• Meb￿ AM•ts Cr•dltslnterfvnd ON DR / {CR) L'ODO e•JOO ¥OOO £'OOO VOOD £'OOO 24 Summ•ry Of AMtJ By Fund Unr•tri¢tsd fj•n•r•l Fund9 4.469 3.177 12,527 L436 O•slint•d Tan8lble Flxed A55ets Fund Loan Fund Fund For Churth Growth Pastoral Care & Counsellinm Stheme Mlssion Oevelopment Fund Other Deslgned Totsl D•siin•ted Funth R•strfeted Funds Schools Income Fund Dlocesan Pa51oral Account pport Of aergy And Dependants Retlred clersy Fund5 Pofbock Wyld Trust Edginto￿ Trnst Zambl8 Llnk Modem slavery link Abbey Hous Smith Bequest DBE Restrkted Grants Other Re5￿Cted T•tsl R•¥trl¢t•d Funds Endwm•nt Funds Exp•nd•bl• EndovMi•nt Parsonage Houses Fund Schools Capital Fund Porlock Wyld Trust Retlred Clergy Fund5 P•rm•n•nt Endowm•nt Oloce58n Stipends Fund Capitsl Stlpends Ca￿ts1 General Capitsl Support Of Ordinands Crok8t And Cowley Trusts EdgSnton Twst Other PerFn•nent EndobMmont Totsl Endowm•nt Funds 10,303 (5,5811 13) 4719 246 754 204 1,460 141 18041 190 656 15.6171 1567 314 314 243 49 96 41 35 227 io iii 173 147) 37 35 124 178 227 io 63 364 29 28 729 1241 39 124 929 4¥527 13 661 41,540 149 350 li 15.342 52.833 1.625 892 13.5541 Lg00 47025 {2671 82 52 157 405 69 57 026 16 394 1,289 981 91826 All Fund• 58

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 25 Commitments lal Capital Expenditure 2021 2020 £'ooo Contracted for, not yet completed Authorised, not yet contracted for Total Capltal Commltments (b) Loans At 31 December 2021 the DBF had commitments to zero parishes12020- zero) to provide loans totalling £nil12020- £Nil} in relation to the CCLA Diocesan Loan Scheme. In March 2016 the DgF approved a loan of £340.Iy)O to Bath Abbey PCC from the Diocesan Loan Fund. The loan is contingent upon the remaining loan funding required for the Abbey Footprint Projert to be in place. This loan offer was extended until March 2019. In January 2019 the loan commitment was revlsed to a maximum of £l(10.000 with an extension to March 2022 .The loan would be repayable over 20 years with an initial 5 year interest only period. funded from the CCL4 Diocesan Loan Scheme at an annual interest rate of 1% above variable bank base rate. This loan was not taken out by Bath Abbey PCC. During the prior year. Bath Abbey PCC entered into a loan agreement for £400,000. to be made available in tranches of £IOOk. At the year end £300k has been drawn down. The loan is repayable from the first annNersary of the drawdown and Interest Is belng charged on the loan of 2% above variable bank base rate. Ic) Operatlng Leases 2021 2020 Payable not more than one year Payable more than one but not more than five years Total Operatlng Lease Comrnitments 26 Post Balance Sheet Events and Contlngent Liablllties There were no post balance sheet events or contingent liabilities at the balance sheet date. 59

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 27 Pension Costs The Church Workers Pension Fund has a section known as the Defined Benefit5 Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. (a} The Church Workers, Pension Fund (Lay Staffj- Penslon Bullder Scheme The DBF participates in the Penslon Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of En8land Penslons Board, which holds the assets of the 5chernes separately from those of the Employer and the other partlcipating employers. The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder cla￿lc and Pension Builder 2014, both of which are classed as defined benefit schemes. Pension Builder Classic provides a pension for members for payment from retirement. accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and revlewed by the Church of England Pensions Board from time to time. Bonuses may also be declared. depending upon the investment returns and other factors. PensSon Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefit5 at retirement. Pension contributions are recorded In an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factor5. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members, Normal Pension Age. There is no sub-division of assets between employers in each 5ettion of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not P055ible to attribute the Pension Builder 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 payable12021: £251,830, 2020.. £248.9891. A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020. For the Pension Builder Classic section. the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time. 60

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 For the Pension Builder 2014 Section. the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. The legal structure of the scheme is such that if another employer fails, the DBF could become responsible for paying a share of that employer's pension liabilities. {b) The Church worker￿ Penslon Fund (Lay Staffl - Deflned Benefits Scheme The DBF participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme Is administered by the Church of England Pen5ion5 Board, which hold5 the assets of the 5cheme5 separately from those of the Employer and the other participating employers. Defined Benefits Stheme The Defined Benefits Scheme I"DBS"I sectlon of the Church Workers, Penslon Fund provldes benefits for lay staff based on final pensionable salaries. For funding purposes, DBS is divided into sub-pools in respect of each participating employer a5 well as a further 5ub-pool, known as the Life Risk Pool. The Life Risk Pool exist5 to share certain risks between employers, including those relating to mortality and post-retirement investment return5. The division of the DBS into sub-pools is notional and Is for the purpose of calculating ongoing contributlons. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers, sub-pools to the Llfe Risk Pool and all penslons and death benefits are paid from the Life Risk Pool. The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not P055ible to attribute DBS assets and liabilities to specific employer5. since each employer, through the Life Risk Se¢tlon. Is exposed to actuarlal risks associated with the current and former employees of other enttties participating in DB5. This means that contributions are accounted for as if DBS were a defined contribution scheme. The penslons costs charged to the SOFA during the year are contributions payable toward5 benefits and expenses accrued in that year 12021: £139,OCh), 2020.. £7,000) plus the figures in relation to the DBS deflclt hlghllghted In the table below as being recognised in the SOFA. giving a total charge of £139,000 for 2021 {2020- £7,000}. If. following an actuarial valuation of the Life Risk Pool, there is a Surplus or deficit in the pool, further transfers may be made from the Llfe Risk Pool to the employers. sub-pools, or vice versa. The amounts to be transferred {and their allocation between the sub-poolsl will be settled by the Church of England Pensions Board on the advlce of the Actuary. A valuation of DBS is carried out once every three years. The most recently finalised was carried out as at 31 December 2019. In this valuation. the Life Risk Sertion was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employers, sub-pools to the Life Risk 61

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Section. This increased the Employer contributions that would othenvise have been payable. The overall deficit in DBS was £11.3m. The next actuarial valuation is due at 310ecember 2022. Following the valuation, the Employer has entered into an agreement with the Church Workers, Pension Fund to pay expenses of £9.500 per year. In addition deficit payments of £102.259 per vear have been agreed for 3.5 years from l April 2021 in respect of the Shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employe¢s financial ststements. Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as liability. The movement in the provision is set out below: 2021-£ 2020-£ Balance sheet liability at l January 229,000 325.000 1102,0001 I103,C￿} 1,000 3,000 Deficit contribution paid Interest cost {recognised in SOFA) Remaining change to the balance sheet Ilabllity'lrecogni5ed in SOFA) Balano sheet liability at 31 December 266,000 229.000 * Comprises change in agreed deficit recovery plan and change in discount rate between year-ends. 138.000 4,000 Thi5 liability represents the present value of the deficit contributions agreed as at the accountin8 date and has been valued using the following a55umptions. set by reference to the duration of the deficit recovery paymeTrt5: December 2021 December 2020 December 2019 DSscount rate 1.30% 0.30% 1.20% The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employerfs pension Ilabilities. (c) The Church of England Funded Penslons Stheme for aergy The DBF participates In the Church of England Funded Pensions Scheme for stipendiary clergy. defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies. Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends. 62

The Bath and Wells Diocesan Board ofFinance Notes to the Financial Statements For the year ended 31 December 2021 The scheme 15 considered to be a multi*mployer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme's assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contrlbution scheme. The penslons costs charged to the SOFA in the year are contributions payable toward5 benefits and expenses accrued in that year12021'. £1,511L 2020: £1,246kl, plus the figures highlighted in the table below as being recognised in the SOFA, giving a total charge of £1,505k for 202112020: £1.320k). A valuation ofthe Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumption An average discount rate of 3.2% p.a., RPI inflation of 3.4% p.a. land pension increases consistent with this),. Increase in pensionable stipends of 3.4% p.a.; Mortallty In accordance with 95% of the S3NA VL tables, wlth allowance for improvements in mortality rates in line with the CM12018 extended model with a long term annual rate of Improvement of 1.5%. a smoothing parameterf of 7 and an Inltial addltlon to mort3lity improvement5 ofO.5% pa. Followin8 the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and thÈ deficit recovery tontributions135 a percentage of pensionable stipends) are as set out In the table below. % of pensionable stipends January 2018 to December 2020 11.9% January 2021 to December 2022 7.1% Deficit repair contributions As at 31 December 2019, 31 December 2020 and 310ecember 2021 the deficit recovery contributions under the recovery plan in force were a5 set out in the above table. For senlor office holders, pensionable Stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules. 63

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 Section 28.IIA of FRS 102 requires agreed deficit recovery payment5 to be recognised as a liability. The movement in the balance sheet liability over 2020 and over 2021 is set out in the table below. 2021 2020 Balance sheet liability at l January 678 1.133 Deficit contribution paid Interest cost Irecognised in SOFA) Remaining change to the balance sheet liability Irecognised in SOFAI Balance Sheet liability at 31 December 'Comprises change in agreed deficit recovery plan and ehange in discount rate and assumptlons between year-ends. 1334) 1529) io (7) 338 64 678 This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficlt recovery payments but as at 31 December 2021, under accounting rules the payment are not discounted slnce the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipend5 for the remainder of the recovery plan are already known. Dècember 2021 2020 2019 Discount rate 0.0% pa 0.2% pa l.l% pa Price Inflatlon NIA 3.1% pa 2.8% pa InC￿aSe to total pensionable payroll 11.5%) pa 1.6% pa 1.3% pa The legal structure of the scheme is such that rf another Responsible Body fails, the DBF could become responsible for paying 3 Share of that Responsible Body's pension liabilitie5. 64

The Bath and WelIs Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 CEFPS (dl Penslon Llablllty Recondllatlon - all sdieffles Unrestrlthd Funds R•rtTr End￿￿ 2021 2020 D•s*- Ict•d rn•rt G•n•ral nat•d Fund4 Funds Total Total VOOD £000 £'OOO VI>)0 £'OOO fOOO Li•billty It l Jllnu•ry Deficit Contributlons pald Interest C05t 229 678 907 1,458 (334) (436) (6311 13 1102) Remeasurement Gain5 138 (7) 68 Liability at 31 Da￿rnber 908 65

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28a Prlor Year Comparatlve Notes- Statement of Financlal Artivities Unieicted Restric- Endix Funds tod Funds Totsl Is Totsl Funts 2019 FuTrls Note General nated e(x)o e( £LX kncome and ￿doWn￿￿tsfIQM Paii5h C{￿￿￿t￿n$ [e-mail] Charitablèactivttles Other acti￿￿e5 InvestnMts Other IncL 9208 10.a9 1202 432 252 942 427 420 124 594 la￿) 1314 1,415 558 Total Ineomeand endoipents 61 1.781 ia.n2 14.292 EpÈndtureon PAi5ingfunds Charitsble actV41t(es other ExFendttu Ini)airrrErtof prnpertfes Total emwdl￿re 211 32 37 274 14,]83 41 141 L588 14J 37 15.9(YJ 14,498 Net{expenditurè) I Incon￿ before Inv&trnert 8alns/11(￿) tgan510055e5) on investmerts Net(eMFndlturel linto (aJ821 f127} {f)a3) 7) IX161 31 26 12691 Ih76 3.Llll {2J04) U35 13 1511 1122J {607) ￿￿$1￿$betWeen funds L528 (8Tdl (336} 132 Other ieco8nked gains IlenèsurekreTht galms o flned benefit ￿lS1on S￿e￿S 1.*2 Net moMKent In fun(b ILO271 IW) (9431 1092 [2A72) 4,817 Totsl broWfLYwatd Total funth earrled fo￿￿￿￿ 5915 &la) 2817 86743 103fi15 9&818 74 87 io J03,&H5 66

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28b Prior Year Comparative Notes- Notes 2 to 6 lJnrestrlcted Funds ReStrIct￿ ETrdowmert Total Total Fund$ FuThds F￿dS 2020 2019 ro)) 13emeral Deslgnated, £'cYo Parthsh CurTEntyearfs albxl( Addtirnal Pryfflerts A￿tsfry seat5 DIscretlan￿ry Parith Shwe rel ShxEfall Incontrtsutlor iQ586 20 Iq586 10539 19 1689 170• 11991 08 10 359 Tttsl Parfth shar ￿Pys￿rt 87.cfAof thÈ alIc<atkn12019-￿x} 2bothev (na¥J AlchjJrc￿sT￿t Fcurd&iDn d St M&thia5 RME O￿l￿and% GFJnt D£￿ap)r5.GEunES. sFDnso￿￿ltS & L28xiES 122 136 63 434 57 57 511 511 374 942 26LI 252 Y202 3 Acthtkles ststutoryke5 and £￿p1a￿ irrorne Couth fees and oth2r 369 61 140 729 432 4 OthwAuF¥hks Rerrtal income frnMclE￿Y huu5e5, schcds and theold Deanery *JpK￿rtst￿ICes 4)7 20 412 15 35 34 427 447 338 5 IrWesln￿mIkn(Offje Diildends recelvable Irte￿ FtceiwaWE Rewluatknn £1 Equliy Lo￿5 Natltrrnl irteEeSt R net PFtserrt¥al Rtnts 372 78 216 li 14 107 S9 378 1.415 6 0thtrkn¢• Gain on di5PLulof prDpertès Soljr PV Panel hT IntoxrE othEr 1188 oi 427 iio 121 io 558 124 14 67

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28¢ Prior Year Comparatlve Notes- Notes 7 to 8 UThreBtrlrted Fund¥ Ile*- Endow- Totsl Total De51£- kted ment Funds Fund5 nated Funds Funds 2020 2019 £￿00 £.￿0 £Y￿0 eooo General 7 Cfjstsof rais￿£ tsn.ds StDckEfokerfs fees Value Llnked loa ns lrterest Interest cost & expenses: pensl scheffes Glebe Lard & C1￿£Y Houses lettlng costs 16 12 12 13 12 21 171 171 131 211 37 274 8 Charltable artlvltles Contrfbutlon to Arthblghops. COU￿11 Tralnin8 fLY Ministry Natlordl Church ReS￿nSIbIl￿[es Grants and pl￿1$10n5 mis51(￿ Agency pens(on conlribLllor6 Retired Clergy HC￿511￿ (CHARIAI & G rants Poollng of ordna rKI candldates, costs 393 393 271 58 271 312 33 15 141 141 134 882 876 Resourelng Mln15try and Mlsslon Par15h Mini5ty. Sts"pents and ￿lat Securtty Pension eLMrtfibutbJns Hc￿s1F¥ costs Remova I, osÉttlement cther Arants Other expenses 5.250 1.246 L337 5236 5J96 1246 1218 1,941 1982 604 230 297 215 58 38 96 s￿16 8.748 5A97 4x181 137 8.121 4A42 Si4)wt for rnlnlsty 132 923 F￿d for ch￿￿h Growth io 563 141 I￿04 14 313 11819 Expenditureon Edu£atbn Church Sclx)ols: Admlnistrati( 387 79 466 488 832 141 1 15 661 14 183 68

The Bath and Wells Diocesan Board of Finance Notes to the Financial Ststements For the year ended 31 December 2021 28d Prior Year Comparative Notes- Notes 9 to 11 Unr•fftkt•d Funds Endow- Total Total Desl kted ment Fund4 Funds General nated Funds Funds 2020 2019 Vooo eooo ¢000 eooo £'oo) £.( 9 GaInsl(knM￿j on InveAment As•ts lJYèallsed sainslllossèsl after rèvaluation {'} Realksedylr&l{knsses) ￿ thpTsal 21 26 552 2,s￿l2 18211 {8111 139 1269) Izm 3.041 io 31 Ithles ellmzakn kn ￿lI￿￿t￿the r•r4luaiton<l 61ebèAgrfcultural LaThY12019- £Qlml. 10 Analysts ￿ Rewurces Ewbended Includlnz Alo<aUon Ofsupport C4Jsts Grant Act1kn￿denakeTh lundlng of Support Total Total CIreCt￿ actlvltle5 Cosrs 2020 2019 ro￿ Yooo £x 274 Raisir Funds Conofbuitons to ArCh￿ShOps. CO￿11 Rèsourtlng mlnistry aNI missi 393 876 IL465 415 685 1,164 14J14 IL819 si FixLbdAsset Irkyairme 41 L17J L215 15J)9 14498 Lknreslrltted F￿dS Restr- Enthw- Total Total rnent Fund5 Funts General ned Fund5 F￿dS ￿20 2019 ethx) £YA)O £'Q)D £,￿) 11 An5i5 Of $￿POrt Costs Cetttral AIn￿￿StratFoTh for Schcttls Go)Rrnarre: ExterrBI Aulit Professional Fees Di0￿Sanand GeneTrl Exp￿Se5 £135 51 51 45 17 20 18 £162 53 IW i,OTa 69

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28e Prior Year Comparative Notes- Note 24 Expend. Rev•l- IturÈ Transfers Uatlon vo £'wo v&)0 £￿00 ov￿/20 lThcome eooo 24 Summary of Fuftd Movements Uniestrictul FllTrds {aTr General {bTr Dictesa n stipetsjs Fund Income 5.915 10,673 I14,￿)6) I￿28 (411 4915 10,861 (14.0471 4528 31 4,141 147 31 4288 Du*nated Funds (cl Tangible Fixed A55ets F￿d Id) Loan Fund (e) Fu￿1 ChurchGrNth 111 Pastofal Care & Counselling Schane slon Deielowient Fund (h) Other Designatsl S849 LOOO 54 (27) (7451 5.077 45 176 187 960 (119 121 1051 1411 &160 14 72 7.166 Total Unrestrlcted FuAd5 14075 10.875 I14.188) 656 36 IL454 70

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28e Prior Year Comparative Note5- Note 241continued) At 01101120 Intomo eooo £•oo Expend- Reja At Iture Transfers uatlon 31112lUI £'ts)o 24 Summary Of Fund Movements IcontifiuBd) Re5trfct,Ed fvnd5 lal khorAs Inc(The Ib) Dloce5an PastoTrl kcowrt Ic) of clergy orKI deperyjirts (d) Retired cleruy fund5 le) POr1￿k Wyld Tfu5t (fj Edgirton Tfu5t 181 Zami¥a Link (h) Smtth Bequest li) DBE RÈstriclÈd Grarts li) Fund fk) Strate8lc Do￿19)mont ￿nd (l) Benthce HO￿@S ,'(ml Other Restrlcted Total Rettrlrted Funds 345 59 iiiii 68) 15) 17) (iii 572 295 299 205 218 57 52 68 162 (¥ (3) 267 1121 115 258 3XJ 372 1131 32 66 257 P901 33 1901) 16911 12 L055 I1￿88￿ 13361 42 2.817 1874 71

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28e Prlor Year Comparative Notes- Note 24 (continued) At Expen& Reva 1101120 Income Iture Trnn4•rs uatlons 311121x1 rooo riwi £'(#)o e(M)o 24 Summary Of Fund Movemffits Endowment Funds Expendable EndoWn￿Trt 131 Par51x)age Houses F￿d Ibl Schools Capltsl Fund Ic) Porlctk Wyld Trltst (dl Retlied Clefsy F￿d5 39,249 661 559 4Q61J 661 122 130 30T 316 40339 559 17 4L720 Pernwnent Endowment lel Diocesan Sti￿nds F￿d Capltal lfj SIlpe￿ts Capit31 lfj General Capltal lfj Sw>p(rt of Ordlnands 181 Crok3t a,ThJ Cowley Tw5ts (h) Ed¥inton Tn (il Other Penna.￿￿nt EnthwThprt 43.4 1.562 1.141 731 82 (741 (l.IXII 874 4*297 (27) (44) 11,230) L402 781 42 164 162 354 16 170 61 46A(14 1,t23 86.748 1,782 {ioi1 (1,1251 1286) 4&115 Iioi) (3201 (269) 87A85 Total Endowment Funds All Fundys lo3.6￿ 13.712 IS977 21YI IOL163 72

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 28f Prior Year Comparative Notes- Note 25 T•n8. & Intsng. Invest- other -Inttrfund ors IXI I {CR) Aaets 25 Summary OfA8￿ts By Fund eooo £%xo ￿￿)0 iknratrltted Gentral Fvnds 3.370 2A74 Desl8nOted TaiEILle FLKed A55£ts FuTrJ Loan Fur) FcrChJch Gr￿Trth Pa5t(xal Care & CouD5ellin8 Mission DevelopTr￿t Fu￿1 Otlv De5tgrnted Total De%lgnated Funds Re5tfiCted Funds hJ)Is InC0Th￿ ￿J[KI (xesan PastLYal £CL￿rt JFVOrt Of Cle￿yAl￿l Dependants RdlrEd Funds kW￿d Trust Edginton Tmst Zambla Ur kiJLyHou5e Smlth B￿￿$t DBE Restrlctecl Grants Othw Reslrfrt￿l Total RerItt￿ Funds 15,727) s￿71 754 246 97 1521 178 187 849 (6111 10.804 1392 779 318 447 235 18681 69 23 1421 36 36 (20) (21 66 53 27B 258 319 3T2 32 26 28 (12) 1899 1254 lJ91 I￿74 Endowment Funds Expendable End0wm￿t p￿￿{￿ge HO￿e5 Fwd IKo15 Capltsl Fund Podwk Wyld Trust Retl￿d Clwgy Permanent Endovfflient Dfjtxe5an &IFEnd5 Fund Ca0121 Iwd5 c£￿trI General Caprtal Fy>tt Cff Ordnarxls Crok8tArxl CovAq TNsts Ed8lnton TTU5t 4L009 24 661 12) (4181 661 130 316 15.107 31,756 L481 781 272 35 14,333) (2371 495 43297 123 IA02 162 157 213 61 370 61 Total Endovfflent Fum1$ 56273 34.925 IJJ04 4573 All Funds 67201 41.941 4.766 ioiJ6a 73

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2021 29 Funds held as Custodlan Trustee The 08F acts as Diocesan Authority or custodian trusteè for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens {Trustsl Measure 1964 where the managing trustees are parochial church councils and others. Assets held in this way, whith consist of both property and financial assets. are not aggregated in these flnancial statements as the DBF does not control them. The financial assets held in this way, which are shown at valuation, may be summari5ed as follows; 2021 2020 CBF Church of England Inve5¢ment Fund Income shares CBF Church of England Fixed Interest SecuritiES Fund shares Charles Stanley- Equltles Unit Tnjst Shares Direct holdin85 in UK equities Dlrect holding5 in UK gllts Other flxed interest stocks CBF Church of En8land Propety Fund shares 10,169 8,960 146 175 153 62 71 354 157 1,931 36 Cash on Deposit Cash at 88nk Total net aM•ts h•ld •# eurtodlan trust•• 179 14479 IIW2 74

The Bath and Wells Diocesan Board of Finance Appendices For the year ended 31 December 2021 Appendices The following accounts and reports do not form part of the audited statutoryfinanclal statements and are Included for Information only. A Consolidated Finantlal Trusts Glossary ofterms 75

The Bath and Wells Diocesan Board ofFinance Appendices For the year ended 31 December 2021 Appendix A Consolidated Financial Trusts Flxed Assets EquiUe5 Govemment se￿WIties Other Flxèd Inte￿￿SeCurIt10s Unlt Tru5tshares CBF Property Fund .241 9,023 492 J53 175 io. 679 CuThentAssets Deposlt Fund BankAccounts 1179 930 36 Loan- Hensman 149 157 1563 Current ilabllltles Creditors Nèt CurrentAssets NetA95ets 156a Ti)tsl eapltsl bglances Totsl accwmulated income balances Yot*l Funds 11.609 79 Caploal analysed as: Par15hes Closed Sthools Schools Other Total actumul4ted Income balance5 7.148 4.253 3.768 193 IJA79 SSgned on behalf ofthe DBF on 14June 2022 by QCL- Rt Revd R Worslev TNstee Mr l Theodoreson Trustee 76

The Bath and Wells Diocesan Board of Finance Appendices For the year ended 31 December 2021 Flnancial Trusts as at 31 December 2021 The Financial Trusts comprise Trusts which are required to be held by the DBF a5 Custodian trustee although they are administered by various parishes, schools or other bodies named as beneficiaries in the relevant trust deeds. The investments relatlng to the trusts are held by the DBF and the income derived is paid to the beneficiaries. In addition to the trusts listed, the DBF also acts as custodian trustee for land and buildings. Report of the Accountants We have examined the figures Set OLrt on page 85 comprising the Balance Sheet for the Financial Trusts held as custodian trustee by the Bath and Wells Diocesan Board of Finan￿ as at 31 December 2021. Basls of opinion The scope of our work was limited to checking whether the figures have been correctly extracted from the amounts recorded in the accounting records. Oplnlon In our opinion the infomiation detailed on the attached schedule has been accurately extracted from the accountlng records ofthe Bath and Wells Diocesan Board of Finance as at 31 December 2021. LLP Signed: Haysmacintyre LLP 10 Queen Street Place London EC4R IAG Date: 14 June 2022 77

The Bath and Wells Diocesan Board of Finance Appendices For the year ended 31 December 2021 Appendix B Glossary of terms ALM Authorised Lay Minister Bath and Wells Multl AcademyTrust BWMAT CBF Central Board of Flnance (of the Church of Englandl Providers of CBF Investment product5 Church of England Pensions Board Church Housing Assistance for Retired Ministry Church Workers, Pension Fund CCLA CEPB CHARM CWPF DAC Diocesan Advisory Committee Diocesan Board of Education DBE DBF Diocesan Board of Finance DBS Defined Benefits Scheme DPA Diocesan Pastoral Account DSF Dlocesan Stipends Fund Fund for Church Growth FCG FRS Financlal Reporting Standard Multi Academy Trust Mission Development Fund Net Present Value MAT MDF NPV PB Pension Builder pcc Parochial Church Council PCR Past Cases Review RME Resources Ministerial Education SAT Stipends Augmentation Trusts Strategic Development Fund/Strategic Ministry Fund Statement of Financial Activities SDF/SMF SOFA SORP Statement of Recommended Practice UTR Unapplied Total Return Voluntary AidedNoluntary Controlled VAtvc 78