2023-12-31-accounts

Agenda Item 2(1) .*¥ The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 DIOCESE OF Bath&Wells June 2024 Living and telling the story of Jesus

Contents Introduttion by the Chair of the Board of Finance... A Legal Framework............................................... Al Legal Objects...................................................... A2 Public Benefit....................................................... B Strategic Report................................................................... Bl Strategic Aims.................................................. 82 Key achievements in the year............................. B3 Financial Performance.....................-...-....... B4 Future Plans.......... B5 Risk Management...............................-..-........... C Structure and Governance.. Cl Organisation and detision maklng structure..... C2 Trustee recruitment, selection and induction..... C3 Remuneration of key management personnel................................................. .... C4 Funds held as custodian trustee..................-.......... C5 Funds held on behalf of schools and Zambian diocese5......................-........ D Trustee5' Responsibilities..,......................................... DI Trustees. Responsibilities for Annual Reports and Accounts..................... D2 Statement of disclosure to the auditor5.............. D3 Appointment of auditors.......... E Legal and Administrative Details......................... F Members and Trustees....-........... Independent Auditor's Report................................ . Statement of Financial Activitie5....... Income and Expenditure Account........................ Balance Sheet.............................. Cash Flow Statement................................ Notes to the Financial Statements.. Appendices.... Appendix A Consolidated Financial Trusts.................................................... Appendix B Glossary ofterms.................................... 16 17 19 19 19 19 20 20 21 21 22 22 23 24 26 31 32 33 35 83 84 86 www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 Introduction by the Chair of the Board of Finance Once again the Diocesan Board of Finance IDBF) has had a disappointing year financially. A quick glance at the accounts might suggest the opposlte with the DBF posting a modest surplus, but that overlooks the fact that the posltive outcome is a result of profits on the sale of properties and a gain in the value of its investments compensatin8 for a fall in regular income. The gains mask an operating deficit of around £1.6 million. thi5 can be calculated from the £lm deficit shown on the Statement of Financial Activity unrestrirted account and removing the gains identified on sales of propertie5 in note 61£541kl. Whilst it 15 helpful that we have surplus assets to sell to help brid8e the deficit, once they are sold they are gone forever. Indeed the result would have been even worse were it not for the sterling effort5 of the property team to maximise income from vacant properties together with the higher than usual levels of unfilled stipendiary posts which led to an underspend in that area. The underlying problem is that 2023 was yet another year when the collection of parish share fell significantly short of what is needed to pay the bills, and In particular short of what is needed to pay for the stipendiary clergy the Diocese deploys. Indeed, the shortfall was even greater than in 2022, suggesting parishes are still struggling to get on top of their own financial challenges- inevitable perhaps in the strong headwinds of spiralling costs in ener8y, insurance and repairs. The DBF extremely grateful for those parishes that continue to pay their parish share in full, and in some case pay more than they are asked for. The principle of mutual support whlch underpins the parish share methodology is fundamental to the way the DBF finances its partnership with pari5he5 to live and tell the story of Jesu5 here in Somerset. At the start of 2024 the Oiocese embarked on a consultation to change the way it assesses parish share and in particular to find 3 way to be more transparent about how much it costs to provide and support ministry at the benefice level. The proposed revised method, which has been worked on over a number ofyears. is based on a benefice share rather than a parish share. and will be voted on by the Diocesan Synod in the autumn. If approved the new System will be introduced from January 2025 and phased-in over a number of years. The D8F still needs to collert the same amount of income as currently, albeit the distribution of where that income comes from will Change. and it will still need parlshes to rise to the challenge of playing their part in the ministry of the Diocese. There is however so much to be thankful for and in particular for the stories of growing faith across the Diocese, some of which are captured in a separately published document in April 2024 Li￿ing￿and tel g the story ofJesus-Growing church Transformin communities. lan Theo oTreson- D& Chair www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 A legal framework The Trustees. who are also director5 for the purpo5e5 of company law, present their annual report together with the audited financial statements for the year ended 31 December 2023. The Diocese of Bath and Wells is one of 42 dioceses that make up the Church of England. Each diocese is a separate legal entity. The Diocese of Bath & Wells provides support to the parishes in Somerset. and it is the parishes that represent the visible presence of the Church 'on the ground,. Each parish, and Wells Cathedral too, is a separate legal entity, and therefore, although there is pooling of financial resources into the Common Fund, their results are not presented in these financial statements. The company, the Bath and Wells Diocesan Board of Finance IDBFI. was incorporated on 6 March 1915 as a company Ilmited by guarantee (No. 1395571 and its governing documents are its Memorandum and Articles of Association. The DBF is registered with the Charity Commission {Mo. 2493981. Al Legal Objects The DBF'S principal object is to promote, assist and advance the work of the Church of England in the Diocese of Bath and Wells by acting a5 the financial executive of the Bath and Wells Diocesan Synod. The DBF has the following statutory responsibilitie5: the management of glebe property and investments to generate income to supportthe cost of stipends ari5in8 from the Church Property Measure 2018 the repair of benefice houses as the Diocesan Parsonages Board under the Repair of Benefice Buildings 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 endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils IPCCSI as Diocesan Authority under the Incumbents and Churchwardens ITrustsl Measure 1964 and the Parochial Church Councils (Power51 Measure 1956. The strategic priorities of the DBF are established by the Dlocesan Synod in communication with Deanery Synods, PCCS, and the Bishop of Bath and Wells lin respect of their responslblllty for the provision of the cure of souls). To this end. significant time and effort is committed to communication between and with these bodies, as well as with the church nationally. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 A2 Publk Benefit The Trustees are aware of the Charlty Commission's guidance on public benefit in 'The 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 ofthe chariws work in 2023. As described more fully throughout the report, the DBF provides funds to support ministers of religion in the diocese, to support education and to support the maintenance of many buildings including parsonage5 and churches, many of which form an important part of the historic fabric and architectural 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 serlous 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 Christian religion amongst the people of the diocese and to Sustain their belief in God, in part throu8h the provision of public religious services. open to all, and in part through bearlng Christian witness. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 B Strategic Report Bl Strategic Aims In line with its legal and charitable object5, the role of the DBF 15 to identify and manage the financial aspects of the provision of ministry within the diocese to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop's Council, deaneries and parishes to further the mission and strategic priorities of the diocese. Diocesan vision The diocesan vision is.. -In response to God's immense love for us. we seek to be God's people Ilvlng and telllng the story of Jesus." Strateglc Prlorltles During 2023, a broad consultation wa5 undertaken to reflect on the diocese vision. and there were many opportunities for them to come together and ask, What will help us live out our vision, and what difference will that make?.. Two aspirations emerged from that, which are for the diocese to be: Growing church Transfornilng communltles There are four area5 of focus for the diocese to put vision into practice: l. Valuing and cherishing the people and ￿SOurceS they already have 2. Developing new Christian worshipping communitie5 3. Sharing in ministry and leadership 4. Deepening and growingfaith. These Strategic priorities govern the implementation of the strategy. They provide a framework for decision making and planning, at diocesan level and for archdeaconrles and deaneries. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 82 Key achievements in the year Retreshlng the diocesan vision together 2023 was Bishop Michael Beasley's first full year as the Bishop of Bath and We115. having been installed at Wells Cathedral on 12 November 2022. The year began with a consultation. undertaken between January and April, to hear from people across the diocese as to how thev were living and telling the story of Jesus in their context: churches, schools, chaplaincies and other communitie5. Thi5 enabled them to see how the diocesan vision wa5 being lived out and how best thev could do that together. The four areas of focus offered by Bishop Michael to enable their vision las above) were accepted as a foundation for the diocese common direction of travel across their different contexts. Autumn visits During autumn 2023. Bishop Michael and Bishop Ruth, with members of the diocesan support Services team, undertook a series of visits to hear about life in the deaneries and reflect together on God's vision for the communities of the deaneries and the wider diocese. Inspirational stories of good practice were shared and insights given about where God is artive in their communities and where. as churches, schools and chaplaincies, they need to be joining in. Equally the challenges faced bv the parishes were named and discussed, such as the ongoing impact of the Covid pandemic. managing our church buildings and church finances. Financès The DBF has had a Structural deficit for many years. During the first half of the year, concerns continued about the rate of parish share payments to the Common Fund. Whereas historically the contribution rate had been 98%, post Covid, the DBF were still only seeing rates of return of 87%. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 Therefore, in early summer 2023. Bishop Michael wrote a letter to each parish in the diocese to explain the parlous state of the finances and request for parishes to pay their parish share. Concurrently* it was recognised that the Common Fund methodology that apportions parish share to parishes had not been fit for purpose for some time and so after six years of work by the Common Fund Committee. in November 2023. Diocesan Synod approved a proposed benefice share methodology for wider con5ultatlon In the first half of 2024. In 2023, the DBF'5 continuing strategic review of housing requirements and glebe assets across the diocese, has again enabled surplus assets to be identified. Realisation of these assets reduced the pressure on DBF reserves, parishes and the Common Fund by bridging the deficit. In this financial climate, the DBF appreciate that parish treasurers are having to support their parishes through difficult times. Since Covid, there has been a turnover of 40% in treasurers and so in November 2023 a number of training workshops were held for the team of treasurers to give support in understanding the role and what help is available both from the finance team and a group of experienced treasurers. The annual pattern of these meetings is to be reinstated. Glvlng and Funding The ongoing structural deficit is in large part due to parishes not bein8 in a position to pay their parish share into the ommon Fund. To a5SlSt with this, the Giving and Funding Team gave support to parishes and rolled out Way5 to Give and the Parish Giving Scheme. This has begun to help reduce the buwden on parish treasurers for managing Gift Aid claims and promotes increased levels of regular. committed giving across the diocese. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 Clergy deployment and pastoral reorganisation The Clergy Deployment Report that was presented to Bishop's Council in March 2020 (just prior to lockdown the number of posts from 178 to 150 to ease the Structural deficit. In 2023, the deaneries continued to work hard on their deanery plans, supported by their archdeacons, to enable this reduction. Support has been given by the Secretariat Team to enable these plans to begin to be shaped into pastoral schemes so that the requi51te legal process can be undertaken. Shared local ministry The flourishing of shared local mlnlstry 15 Vltal to build up the body of Christ in the local church and to lead the church in mission. The diocesan Support Services Team has worked alongside deaneries and parishes as they continue to explore the development of shared local ministry by developing a framework for the discernment and equipping of a range of ministries. Education and Go Team In 2023, the diocesan priorities included work with children and young people with new initiative5 such as Launchpad and the recent Bishops. Mlssion Order IBMOI for a priest to identify and develop youn8 leaders. Nationally, potential changes to Church Articles and the Memorandum of Understanding regarding the diocesan relationship with the Department for Education, schools and multi-academy trusts (MATS) were anticipated. There was also a new vision of a flourishing education system. aligned with Growing Faith. to be launched by the Church of England Education Office. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 All six d40ceses across the south west region confirmed that they were seeking to work more closely and would adopt and adapt the Diocese of Salisbury model, a Programme for Church School Flourishing IPCSF). This programme, 'our trust in your trusv, equips multi-academy trusts to ensure that their own church schools flourish, securing Christian distinctivene55, With support and quality assurance through the appropriate diocesan education team and Diocesan Board of Education (DBEI. Over 60% of schools are now academised and several trusts are already seeking to employ lead5 for church school distinctivenes5. It was recognised that continued financial constraints on the diocese and acr055 education more widely mean that funding, internal or external, to expand the education team is unlikely and thus there is little scope for a more expensive team to deliver a School improvement service or for service level agreements with schools and trusts, making opportunities to work with and through trusts increasingly necessary. Net-iero carbon by 2030 As part of the strategic intent to move towards becoming a net-zero carbon diocese by 2030, the diocese Property Team has ascertained the current energy and environmental performance of the majority of their housing stock. Where possible and financially viable the DBF aim5 to improve energy efficiency and carbon output of the housing portfolio. Sepvices to parishes- support realignment The support services offered by the DBF continued to evolve to meet the needs of the parishes. There were a number of appointments and changes in the DBF stsffinB structure to seek to improve the support offered. These included staffing changes to improve the management of parochial fees and returns to the Church of England and strengthening the support is given to parishes in liaising with the Diocesan Advisory Committee IDACI. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Finance Annual Report For the yearended 31 December 2023 B3 Financial Performance Flnanclal outturn The operating deficit on 8eneral funds prior to investment gains and transfers was £lm: the impact of investment gains, actuarial movements and transfers between funds which includes the total return adjustment, meant the unrestricted reserves increased by £0.2m. The operating deficit primarily arose from continued low levels of parish share recelpts. The diocese continues to face significant pressures in unre5trirted reserve levels and ensuring it holds sufficlent cash reserves to support operational activities. However, unlike many dioceses, the DBF holds a si8nlficant level of endowed funds which 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 2023 this transfer amounted to £1.4 million see note 18 to the accounts). Income and expenditure The Statement of Financial Activities {SOFAI for the year on page 31 shows total income including from endowments of £15.3m12022- £15.3ml and total expenditure of £1S.Im12022- £15.2ml, resulting in net income of £0.2m12022- £0.Im). Income remained consistent with 2022, with the reduction in parish share contributions offset by Increases in rental income from clergy houses, gain5 on disposal of properties and grants received. Totsl expenditure remained fairly consistent desplte increasing costs impacted by high levels of inflation. Thls is mainly due to a higher level of stipendiary vacancies compared to 2022. www.bathandwells.org.uk

The Bath and Wells Diocesan Board of Flnance Annual Report Forthe year ended 31 De￿mber 2023 Realised and unrealised investment galns of £1.6m {2022: losses £2.3ml, contributed to the net increase in total funds of £1.8m {2022- net decrease of £1.8m). Total fund balances increased from £103.Im to £104.9m Parish Share In 2023 the DBF did not adjust the allocation between parishes compared with the 2022 level but requested that an inflationary increase of 2% be applied. Every effort was made by the DBF to review the costs covered by the Common Fund into which Parish Share contributions are made, to ensure the Common Fund was sustainable. A large part of the costs were stipends, pensions, staff salaries and buildin8 maintenance costs. which all increased broadly in line with inflation. Many parishes were unable to sustain their historic levels of giving and, for a third year in a row, the contribution rate fell from its historic levels of around 99%. In 2023, the DBF received 87% ofshare requested from parishes In year12022- 91% in year). a shortfall on the requested amount of £1.4m. which meant that the diocese had to subsidise an increasing level of ministry costs from its own reserves. Grants received The DBF 8ratefully acknowledges grants received from BenefactTrust of £105,87512022- £121,0001 and from The Foundation of St. Matthlas totalling £62,1)0012022 - £35,0001. The DBF also received the following grants from the Archbishops, Council: £300,55612022 - £330,450) Strategic Development Fundin8 towards the Pioneer Project £278,451 {2022- £401,000) block 8rant for ordinands, tralnlng fees and expenses under the Resourcin8 Ministerial Education proce55. £117.895 Low Income Communitie5 Funding www.bathandwells.org.uk 10

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 Balance Sheet The net assets at the balance sheet date totalled £104.9m12022- £103.Iml. This includes propertles totalling £65.4m12022 - £65.6ml, which are mainly used to house stipendiary clergy. Much of the remainder of the assets shown in the balance sheet are held in restricted and endowment funds and cannot necessarlly be used for the general purposes of the DBF. (See notes 23 and 24 to the accounts.) The Trustees are satisfied that the DBF has adequate resources to continue to operate a5 a going concem and have prepared the financial statements on that basis. Reserves poli¢y- free reserves The Trustees require reserves to- meet short term excesses of expenditure over income provide funds for expenditure with long life horizons such a5 clergy housing fund future initiatives such as the changing strurture of ministry and the deployment of clergy. It is the DBF'S policy to maintain the readily realisable assets in the Unrestricted General Fund at between three and six months, unrestricted expenditure. The aim is to ensure the availability of sufficient liquid funds to enable the DBF to meet its daily commitments. As at 31 December 2023, free reserves stood at £2.6m12022 - £2.4ml which is around two months, expenditure. These are not budgeted to increase in 2024 as the diocese has once again been forced to set a deficit budget supported by disposing of assets such as investments and houses to SUPPOrt the operating deficit. Designated and other reserves The diocese holds a number of other reserves for operational purposes whlch are detailed in full in note 23 of the accounts. www.bathandwe115.org.uk li

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 Grant-making policy The DBF makes grants in pursuance of its objects, and the nature of grants made in 2023 Is set out In note 12 to the accounts. Grants are made to the national church to cover a proportion of its central costs and to cover the cost of training for ministry. Grants are also paid to other connected charities and charitable projects which support the furtherance of the DBF'S objects. Invèstment policv The DBF invests monies not immediately required for it5 operational purposes in listed investments managed on its behalf by two separate investment managers. Brewin Dolphin and CCLA. All investments are held in accordance with the Church of England's Ethical Investment Advisory Group's IEIAGI guldance- the EIAG is widely held to be a leading think tank in the field of ESG (Environmental. Soclal and Governance) investing. The DBF also holds glebe (property) 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 clerEY Stipends. The diocese seeks to achieve a 4% real return on all its investments which is used to fund the day-to-day operations of the diocese. In addition. the DBF acts as trustee of a number of trust funds, and these are invested in accordance with the related trusts. Note 24 to the accounts provides details of the assets of each fund, together with the related purposes. and note 18 summarises the movements in investments during the year. vw.bathandwells.org.uk 12

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 Programmtrrelated investments The DBF provides loan finance to PCCS and related projects through two loan initiatives: CCiA backed Diocesan Loan Scheme (closed to new applications) This scheme allowed PCCS to obtain loan finance from the DBF at low interest rates for periods from 5-7 years to facilitate building or other projects which further the mission of the church. The DBF received loan funding from CCLA totalling £lm which is available to provide these loan facilities until May 2026. Loans range from £3,000 to £150,¢)00. At 31 December 2023 the total loans outstanding from parishes from this scheme was £208K {2022- £270K). Diocesan Loan Fund The DBF has designated a £SOOk reserve to allow further loans to be extended to PCCS where CCLA funds are not available. These loans are repayable over varlable periods and are at a low interest rate. At 31 December 2023 loan balances outstanding, prior to bad debt provision, were £374K. The DBF considers these investments assist PCCS to achieve the mutual charitable objects of furthering the mission of the church wtthin the diocese and complement the PCCS. use of Erant funding and l¢xal fundraising including pledged donations which are received over a number of years. Provision is made in the accounts for any assessed non-recoverable balances. The bad debt provision has been assl8ned both to the designated funds and unrestrirted general funds. People resources The DBF and the parishes it serves are resourced with clergy, either licensed or with permission to officiate, including not only stipendiary parish priests, curates and archdeacons but also self- supporting ministers, chaplains. ministers with a House for Duty and many retired clergy. In addition, there are also lay ministers, either licensed or with permission to officiate, including Readers, auth0ri5ed lay ministers and lay chaplains. The DBF is dependent on the huge number of people involved in church activities both locally and at diocesan level. The service provided to a community through church volunteering also has a significant impact on people's relationshlp to the church, particularly at times of crisis. Within this context. the DBF g￿atIv values the considerable time given by all committee members and other volunteers across the diocese in pursuit of the mlssion of the dlocese. www.bathandwells.org.uk 13

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 Related parties The DBF identifie5 the following as related parties for the purpose of reporting: General Synod. Church Commissioners and Archbishops, Council he DBF has to comply with Measures passed by the Ger)eral Synod of the Church of England and also makes certain annual payments to the Archbishops, Council toward5 the running costs of the national church. As disclosed in note 13 to the accounts. certain costs of the bishops, including Stipends and pension contributions are borne by the Church Commissioners. Parochial Church Councils {PCCs) The DBF Is required by Measure to be custodian trustee in relation to certain 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 within the DBF and at Diocesan Synod level through representations to those bodies and through the input of their Deanery Synods. www.bathandwells.org.uk 14

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 other The Church of England Pensions Board to which the DBF pays retirement benefit contributions for stipendiary clergy and employees. It also offers schemes to provide housing for clergy in retirement. The Chapter of Wells Cathedral from which the DBF receives modest alms. Some diocesan events held in the Cathedral are paid for by the DBF. The DBF provides HR and Safeguarding services to the Chapter under service level agreements. The Foundation of St Matthias, of which three DBF employees are trustees, from which the DBF receives grants for educational services. The Bath and Wells Mutti Academy Trust IBWMATI The BWMAT rents out meeting Space from the DBF and the DBF provlded educational services to BWMAT during the year. 8WMAT occupy school buildings under agreements with the DBF. The DBF does not exercise control over these buildings and therefore they are not recognised as assets in these financial statements. The BWMAfs company name and number is The Bath and Wells Diocesan Academies Trust1082070951. The Palace Trust, Wells, of which the Bishop of Bath and Wells is a trustee. Discretionary trust funds administered by employees of the DBF. DBF trustees of these trusts are as follows: The Stone Trust (S DBF trustees, l DBF employeel- The Herbert Trust12 DBF Trustees),. Bishop's Rib11 D8F Trusteel; Wells Clerical Charity {2 DBF trusteesl- The Archdeaconry of Taunton Fund for Clergy, their Widows and Dependants {1 DBF trustee}; The Wynne Willson Scholarship Fund (2 D3F trustees),. and The Bath Clerical Famllles Fund12 DBF trustee51. Except for the Bath Clerical Families 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. Transartions Wlth the main categorles of related parties are identifled In appropriate places throughout the financial statements. Where the materiality of t17e transactions merits more, detailed disclosure is given in note 13 to the financial statements. www.bathandwells.org.uk 15

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 B4 Future Plans The diocesan Support se￿ICe5 Team will continue to support deanerles and parishes as thev work through the Impact of the reduction in stipendiary ministry to ensure ministries are enabled acr05S thediocese, All of the diocese is working on renewing and revitalising their vision for the life and ministry of their parishes, schools and chaplaincies and plans to engage with deaneries and parishes to discuss with this longer-term work to grow and transform the communities they support. The new benefice share proposals will be consulted on in the first half of 2024, aiming for a new Common Fund methodology will be brought to the Diocesan Synod in July 2024 for final decision. The diocese plans to provide further prartical assistance in identifying and mobilising different ways for Indivlduals to glve to their parishes and churches. The DBF Is working on a funding application to the Church of England's diocesan investment programme IDIPI that is administered by the Strategic Mission and Ministry Investment Board ISMMIBI. The DIP funding is being released to enable the strategic priorities and the bold outcomes of the Church of England's vision to become a reality in local parishes and communitie5 across the diocese. The diocese is aware of the continued financial difficulties and will continue to seek to obtain best returns on Its assets. In property this Is through maximisin8 rental income or continued sale of assets and explorin8 8lebe development opportunities to seek to reduce the financial pressure on the DBF reserves and the Common Fund. Work continues on identifyin8 the adjustments required in ordei to achieve net-zero carbon diocese by 2030. www.bathandwells.org.uk 16

The Bath and Wells Diocesan Board of Finance Annual Report Forthe year ended 31 December 2023 B5 Rlsk managernent The Trustees have overall responsibility for risk management and internal controls. Consequently, there s a risk management strategy designed to ensure that the principal risks to the organi5ation are identified and managed. The Trustees delegate to the Audit and Risk Management Group (ARMGI the task of ensuring that risks are identified, considered, and brought to their attention. Risks are reviewed regularly and incorporated in the General Risk Register. Risks 'Assessed' as high are detailed in the High-Ri5k Register. which identifies what steps are already being t3ken to mitigate the risk. and what the 'Reviewed' risk will be if further steps are taken. Thls assists Trustees in the management of risk including the determination of risk appetite. During 2024 the format of the risk register format will be reviewed and updated with the aim of making It easier for Trustees to understand and to use, which is especially importsnt in these challenging times. prfncipal risk5 and uncertainties arislng from Z024 The last few years have required the organisation to consume reserves and use property sales to prop up the financial position of the diocese. This was again a feature of 2023 with the structural deficit of day-to-day costs exceeding normal incorne continuin8 despite efforts to constrain costs. Even with significant efforts to re-build and grow church life there are still conslderable limits on the capacity of parishe5 to improve their financial position and hence to pay parish share into the Cornmon Fund to the necessary level. It is difficult at this Stage to know therefore whether the DBF re5trurturing, clergy deployment plans, or proposed revised common fund contribution methodology, currently in consultation. for example wlll be sufficient or whether more wlll be needed, www.bathandwells.org.uk 17

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 Relying on investment gains to cover operating costs Ss not sustalnable and Is also unpredictable and unreliable. Prlncipal rlsks Inelude Insufficient cash flow due to parish receipts not meeting budgeted levels and clergy levels not reducing to budget levels, in conjunction with a failure to develop new sources of income. Risks a150 include a possibility of continuing slow rebuilding of church membership and attendance with consequential difficultie5 of rebuilding parish reserves and funding parish share. Thi5 is particularly highlighted by the significant number of parishes continuing to struggle to fulfil their parish share commitments. Mitigations in place include regular performance monitoring and readiness to take corrertive artion if nece553ry; a5 well as significant levels of communication to parlshes concernin8 the importance of parish share and providing greater support for parishes. The potential costs of implementing the Church of England policy of becoming carbon neutral by 2030 remains a risk. A multi-disciplinary task force ha5 been proposed and the Property Team has identified step5 It needs to take, but the risk remains high until more work is done. A potentially high risk exists for education, principally because of the uncertainty surrounding an increase in the number of church Schools applying tc join MATS, which could mean that more temporary/fixed staff will have to be engaged to carry out the work; somethin8 the diocese will find difficult to plan for. As ever. safeguarding remains a high-level risk to which significant resources are invested in mitigation. A proposal under the Jay review to separate Safeguarding from the dioceses is potentially on the horizon. but how or when this would be brought forward is currently unknown. Some progres5 has been made in the implementation of recommendations coming out of the major review of governance structures undertaken in 2021. Further implementation work will continue during 2024, pushing forward the enhancing of the role of Trustees. developing a schedule of delegation, and exploration of a nominations committee. www.bathandwells.org.uk 18

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 C Structure and Governance Cl Or8anisation and declslon-making strurture The statutory governing body of the diocese 15 the Diocesan Synod, which is an elected body with representation from all parts of the diocese. Its legal basis is the Synodical Government Measure 1969. Membership consists of ex-officio members, including the bishops and archdeacons, clergy members elected by the house5 of clergy and lay persons elected bv the houses of laity in deanery synods. In addition, up to five other people may be co-opted by the House of ClerBY or the House of Laityand a maximum of ten members nominated bythe Bishop of Bath and Wells. Diocesan Synod normally meets three times a year during March, July and October. Synod elects members to serve as trustees on the Bishop's Council, the standing committee of Diocesan Synod. Since l April 2008, the members of the Bishop's Councll have also formed the Board of Directors Ithe Boardl of the Board of DBF, and the members of the Diocesan Synod have been the members of the DBF. The Finance Group of the Bishop's Council acts for and assists the Board in its more detailed work. The Board has delegated responsibility for the day-to-day 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 reerultment, selection and Indurtlon The Board of the DBF includes: Ex-officio Trustees Trustees who have been elerted by Synod to serve for three years Trustees appointed by the Bishop of Bath and Wells for the same term. All new Trustees are given an induction pack with key information about the DBF, their role as Trustees and their role as cornpany dirertor5. All Trustees receive inductlon training when first appointed and receive ongoing trainin& as appropriate. C3 Remuneration of key management personnel Emoluments of higher paid employees are determlned 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 by the Board. Details of the aggregate remuneration of key management personnel is shown in note 14 to the accounts. www.bathandwells.org.uk 19

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 C4 Funds held as custodian trustee The DBF is custodian trustee of assets held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens {Trustsl Measure 1964 where the managing trustees are PCCS and others. These assets are not aggregated in the financial statements as the D8F does not control them, and they are segregated from the DBF'S own assets by means of a separate bank account and accounting system. Further details of financial trust assets. whose market value amounted to £13m at 31 December 202312022- £12ml, are available from the DBF on request, and are summarised in note 30. Where properties are held as custodian trustee. the deeds are identified as such and held in safe custody by the DBF. CS Funds held on behalf of schools and Zambian dioteses The DBE is incorporated within the DBF and receives contributions from governors 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 monies do not belong to the DBE and as such the income does not form part of these financial statements. The amount held at 31 December 2023 was E523,49912022 - £949,817). The DBF manages UK bank accounts forthe link dioceses in Zambia as managing agents. The monies do not belong to the DBF and as such do not form part ofthese flnancial statements. The amount held at 31 December 2023 was £2012022- £151. www.bathandwells.org.uk 20

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 D Trustees, responsibilities DI Trustees, responsibilities for Annual Reports and Accounts The Trustees are responsible for preparlng the Trustees. Report. incorporating the Strategic Report, in accordance with applicable law and regulations. Company law requires the Twstees lin thelr capacity as directorsl to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and ofthe net income or expenditure of the company for that year. In preparing those financial statements the trustees are required to.. select the most suitable accounting policies and apply them consistently make judgements and estimates that are reasonable and prudent follow applicable accounting standards and the Charities SORP {FR51021, subject to any material departures disclosed and explained in the financial statement5 prepare the financial statements on the 80ing concern basis unless It is inappropriate to presume that the company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the corporate and trust assets of the company and ensurin8 their proper application under charity law and hence for takin8 reasonable steps for the prevention and detection of fraud and other irregularities. www.bathandwells.org.uk 21

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 D2 Statement of dls¢losure to the audltors The trustees have taken all the necessary steps to ensure that they are aware, as trustees, of any relevant audit infomiation and to establish that the audltors are aware of that informatlon. As far as the trustees are aware, there is no relevant audit information of which the company's auditors are unaware. D3 Appointment of auditors A resolution to reappoint Sayer Vincent LLP as auditors to the company and to authorise the Trustees to fix their remuneration will be proposed at the Annual General Meeting. No trustee had any beneficial Interest in the company during 2023. The names of the Trustees (who also act as directors) who served during the period l January 2023 to the date of approval of these accounts are Shown in sertion F. Trustees. remuneration and expenses are detailed in note 13 to the accounts. The trustees declare that they have approved the trustees, report Ilncorporatlng the strategic report) above. Si8ned on behalf of the Board Rt Revd N M R Beasley Trustee l Theodoreson Chair Date.. 19June 2024 AUDI www.bathandwells.org.uk 22

The Bath and Wells Diocesan Board of Finance Annual Report For the yearended 31 December 2023 E Legal and Administrative Details Registered Office FlourSsh House 2 Cathedral Avenue Wells Somerset BA5 IFD 01749 670777 [e-mail] vrnw.bathandwells.org.uk Telephone E-mail Website Chairs DBF Chair and Chair of the Finance Group DBF Vice<hair and Chair of the Houses Committee DBF Vice-chair and Chair of the Conditions of Mrs M Lee Bsc Service Group Chair of Investments Committee Mr l Theodoreson FCA Chair of Common Fund Committee The Venerable Or A Youings Chair of the Audit and Risk Management Group The Revd D Perreau Mr l Theodoreson FCA Dr A A Palmer LLM PhD FCIB Officers Diocesan Secretary Assistant Diocesan Secretary Head of Finance and Operations Head of Property and Glebe HR Manager Safeguarding Adviser Mrs J Hollingsworth Mr P Evans BA ACIS Mr M Pinnock BSC FCA Mr J Millard BSC MRICS Ms E Andrews Msc Mr B Goodhlnd 85c BA DIPS Agents Solicitor and Diocesan Registrar Consultant Land Agents C Jone5 LLB Greenslade Taylor Hunt l High Streetchard Somerset TA20 IQF Sayer Vincent LLP 110 Golden Lane London ECIY OTG Auditors Bankers National Westminster Bank PLC 7 High StreetWe115 Somerset BA5 2AD CCLA Investment Management Limited Senator House 85 Queen Victoria St London EC4V 4ET Brewin Dolphin Pynes Hill Woodwater Park Exeter EX2 5FD Investment Manager5 www.bathandwells.org.uk 23

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 F Members and Trustees The members ofthe Bath and Wells Diocesan Synod are members ofthe DBF. Similarly. members of the Bishop's Council are directors and trustees of the DBF. The 8ishop's Council consists of the following members: Ex-officio- the Bishop of Bath and Wells (the Presidentl, the Bishop of Taunton, the Archdeacons. the Dean of Wells, the Vice-Presidents (Chairs of Diocesan Synod House of Clergy and Laity) Nominated- Up to five lay members nominated by the president, including the Chairs of the DBF and DBE Elected- five members Itwo dergy and three lay) of the three archdeaconries The Bishop's Council appoints the Finance Group wlth delegated powers to manage the operational financial affairs of the DBF. The followin8 Served as Directors and Trustees for the perlod from l January 2023 to 14June 2024 Ex officio The Rt Revd N M R Beaslev The Rt Revd R Worsley The Venerable A Gell The Venerable S Hill The Venerable DrA Youings The Very Revd J Davies (until 6 January 20231 The Revd Preb J Haslam (until 31 July 20231 The Revd R Driver (from 28 September 20231 Dr C Mason Bishop of Bath and Wells, nominees Ms TJ Khodabandehloo Mrs M Lee Dr A A Palmer The Revd N Tegally Mr l Theodoreson www.bathandwells.org.uk 24

The Bath and Wells Diocesan Board of Finance Annual Report For the year ended 31 December 2023 Elected Bath Archdeaconry The Revd M A C Andrews The Revd R Driver (until 28 September 20231 The Revd T Lewis (elected l February 20241 Mr P Edge Mr J Loring Dr E l Marshall (until 5 October 2023} Mr H Taylor (elected l March 2024) Wells Archdeaconry The Revd B Faulkner {elected 23 January 2024} The Revd D M Keen (until 3 August 20231 The Revd R J Mile5 Mr R Dean Mr T Hind Dr R Sage Taunton Archdea¢onry The Revd A E Fulton The Revd J B V Laurence Mrs S G Bult Mr S Grimshaw Mr NTall www.bathandwells.org.uk 25

Independent Auditor's Report to the Members of The Bath and Wells Diocesan Board of Finance For the year ended 31 December 2023 IndependentAuditor's Report Opinion We have audited the financial statements of The Bath and Wells Diocesan Board of Finance (the 'charitable company'l for the year ended 31 December 2023 which comprise the statement of financial activities, balance sheet. statement of cash flows and notes to the financial statements, including significant accountin8 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Financial Reportin8 Standard applicable in the UK and Repijblic of Ireland {United Kingdom Generally Accepted Accountin8 Practice). In our opinion, the financSal statements: Give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prattice; and Have been prepared in accordance with the requirements ofthe Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those Standards are further described in the Auditorfs responsibilities for the audit of the financial statements Section of our reporL We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evldence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditin8 the financial statement5, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statement5 is appropriate. Based on the work we have performed. we have not identified any rnaterial uncertaintles relatin8 to events or conditions that, individually or collectively. may cast significant doubt on The Bath and Wells Diocesan Board ot Finance's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. www.bathandwells.org.uk 26

Independent Auditor's Report to the Members of The Bath and Wells Diocesan Board of Finance For the year ended 31 December 2023 Other information The other information comprises the information included in the trustees, annual report, including the strategic report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially Inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial staternents themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinlons 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 trustees, annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements: and •The trustees. annual report, including the Strategic report, have been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified matewial misstatements in the tru5tees' annual report includin8 the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion- Adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not Vislted by usl; or The 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 www.bathandwells.org.uk 27

Independent Auditor's Report to the Members of The Bath and Wells Diocesan Board of Finance Forthe year ended 31 December 2023 Responsibilities of trustees for the financial statements As explained more fully in the statement of trustees. responsibilities set out in the trustees, annual report, 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 beinE satisfied that they give a true and fair view, and for such internal control as the trustees determine is nece55ary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessin8 the charitable compan￿5 ability to continue as a 8oin8 concern, disclosin8, as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realSstic alternatlve but to do so. Auditorfs responsibilttles for the audit of the flnanclal statements Our objective5 are to obtain reasonable assurance about whether the flnancial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material mi55tatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financlal statements. Irregularitie5, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detert material misstaternents in respect of Irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud are set out below. Capability of the audit in deterting irregularities In identifying and assessing risks of material misstatement in respect of irregularities. including fraud and non-compliance with law5 and regulations. our procedures included the following: Based on our understanding of the charitable company and the environment in which it operate5, we identified that the principal risk5 of non-compliance with laws and regulations related to the Companies Art 2006 and the Charities Act 2011 and we considered the extent to which non-compliance might have a material effert on the financial statements. We a150 considered other factors such as income tax, payroll tax and sales tax. We enquired of management, and the Audit and Risk Management Group, which Included obtaining and reviewing supporting documentation. concerning the charity's policies and procedure5 relating to: l. Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; www.bathandwells.org.uk 28

Independent Auditorfs Report to the Members of The Bath and Wells Diocesan Board of Finance For the year ended 31 December 2023 2. Detecting and respondin8 to the risks of fraud and whether they have knowledge of any actual, suspected, or 311eged fraud: 3. The internal controls established to Mitigate risks related to fraud or non<ompliance with laws and regulations. We inspected the minutes of meetings of those charged with governance. We obtained an understanding of the legal and regulatory framework that the charity operates in, focuslng on those laws and regulations that had a materlal effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audlt. We reviewed any reports made to re8ulators. We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We performed analytical procedures to identify any unusual or unexpected ￿lationShipS that may indicate rlsks of material misstatement due to fraud. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made In making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. Because of the inherent Ilmitatlons of an audit, there is a rlsk that we will not detect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involve5 Intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilitles is available on the Financial Reporting Council's website at: y￿¥L￿rg￿k1aUdI￿. This description forms part of our auditor's report. www.bathandwells.org.uk 29

Independent Auditor's Report to the Members ofThe Bath and Wells Diocesan Board of Finance Forthe year ended 31 December2023 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 ofthe Companies Act 2006. Our audit work has been undertaken 50 that we might state to the charitable company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members a$ 3 body, for our audit work. forthis report. orfor the opinions we have formed. Noellia Serrano (Senior Statutory Auditorl For and on behalf of Sayer Vincent LLP. Ststutory Auditors 110 Golden Lane London ECIY OTG Date: 24 September 2024 www.bathandwells.org.uk 30

The Bath and Wells Diocesan Board of Finance Statement of Financial Activities Forthe year ended 31 December 2023 Statement of Financial Artivities Unrnstrlrted Funds R•strl td Funds nd• m•nt Total Funds T4)tal Jnds 2022 D•il¢- n•t•d Funds Noto G•n•r•l ¢000 eOfAI Inwme •nd •nd•wm•Bts from DonatlOnS Parish CrxrtrIb￿￿ns her donations Charlt•b1e •Clivitiés oiher activitres Investmerts Oih•r Incorn 28 2b 9.IXI 76 659 980 754 678 9.130 4358 9,338 106 1,176 27 636 797 975 2,13S &27A L188 164 265 1,281 Totsl fid •ndowm•nts 11277 601 15.289 Exp•ndTrlur• on R81slrvd funds Ch8rit•lA •cliviti•s Olher EKpenditur Imp8lrnient of propertles 2S7 13,C63 25 58 282 14W2 251 14.906 158 I,S63 17 T•tsl expendltu¢• 158 15,157 N•t (•xp•nditurl I Ineom• b•lor• Inv•rtmnt Eain• I110ss•$1 Nèt 8alns I11)55esl on in¥estmnts Nrt (•xp•nditurl I Ineom• Ill￿3} 1471 104 477 132 224 17 116 1.275 $82 12.2711 12,1391 13Ql 1738 I109 TraBrf•rs b•tw••n fvnds 15 1.022 245 L312 12.5791 QtK•r i•¢•tnls•d ¢lfis Rel￿aS￿rement sainslllossesl on dellrted benplit pttns1￿ schemes 28 306 N•t mov•m•nt In fvnds 215 1,532 159 2,109 {J.8331 RECONQIIAnoN OF FUND5 Tot•1 funds br•uEht lorward T•l•l fund ¢•Tri•d fon¥ird 2,381 7,312 2.106 91.264 103,063 104,896 23 2,584 7,527 3,638 91,423 105,172 103,063 All activities derive from continuing activities. The notes on pages 35 to 82 form part of the financial statements. www.bathandwells.org.uk 31

The Bath and Wells Diocesan Board of Finance Income and Expenditure Account For the year ended 31 December 2023 Tot1 2023 Total 2022 Total income 14,055 13,519 15,046 11,527) 1865) Totsl xp*nditure Net •p•ratlnz •xpendlture hr the ye•r Net Ilosses)/galns on Investments 15,1)41 1986) 3S7 N•t •xp•nditur• for th• y•ar 16291 {2.392) Othor ¢omprehensivt I￿Orne. Remeasurément 88lns1(losses) on defined benefit pension schemes 166 Tot•1 ¢ornpr•h•nsiv• •xp•rbditur• 2,226 The Income and expenditure account is derived from the Statement of Financial ActMtie5 With movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities. www.bathandwells.org.uk 32

The Bath and Wells Diocesan Board of Finance Balance Sheet For the year ended 31 December 2023 2023 2022 Balaiice Sl)eet - Coiiipany No. 139557 Not• FFxedAssets Intangible assets Tan8ible assets Irwe5tments 16 17 18 66.254 38.362 104,619 fj6.664 41,703 lQ8,372 Current A55ets Stock Oebtors A55ets held for resale Cash on deposit Cash èt b8Ak and in hand L998 1038 21 1.572 2,890 6,913 ¥620 1298 6,112 Credltors: amovnt5 folllng due within oneyear Netcurrent (LlabllltlesllAssets IL8551 (6.553) 1441) Total Assets Le55 CurrÈfftt Ll 109,677 lQ7.931 Credltors: amount5 lalling due after rnore than one year Penslon scheme Iiabilltles 22 14,5051 14,868) 27 NètAssets 105.172 lo3,￿3 Funds Endowment funds Including revaluation reservè of £19.201k12022- U8,881K} Re5trirted Inci)me funds Including revalvalion reserve of L572k12022- E462K} Unrestrlrted income funds: General funds Includin8 revalvation reserve of £76k12022- £61KI Déslgnèted funds Induding revaluation reserve of £15k (2022- £12K) 91,423 91,264 3.638 1106 2.381 7.S27 7.312 Total Funds 23 105.172 103,063 The Notes form part of these financial statements. The financial statements were approved by the Board of Trustees and authori5ed for i55ue on 19 June 2024 and 5igneP on behalf of the Board by:. Balance s *et Rt Revd N M R Beasley Trustee Mr l Theodore50n Trustee www.bathandwells.org.uk 33

The Bath and Wells Diocesan Board of Finance Cash Flow Statement For the year ended 31 December 2023 Cash Flow Statement 2023 £'ooo 2022 £'ooo Cash Ilows from operating artivitie$ Net Ush used In operatln8 actl¥ltles 819 809 Cash flows frofti Irw•sllngactlvltSe5 Dividends, interest and rent from Investments Proceeds from thÈ Sa￿ of: Tangible fixed assets Flxed asset Investments Purchase of: Tangib1ellnta￿ltsle fixed assets for the use of the DBF Fixed asset investments N•t tash pro¥ided byinveslin8 •rthAtles Cash Ilows from flnancln8 actlvftles Loans repaid by the D8F ew loans received by the OBF Net cash provlded byflnandn8 actl¥ities 1.215 1,1 2.850 5.634 3,953 4,962 17861 12.1891 6,724 11.9371 {2,4611 3,569 13.3611 14,4411 2,850 {1.5911 13,3611 Change In cash and ush eq￿alentS In th• y••r Cash and cash e¢yA¥lerts at l J•nu8ry 544 3.918 1.169 2.749 Cash gnd eqthlentsat 31 De£ember 4A62 3.918 RewrKlllatlon of net I￿orne to nrt flwi from rntln actmtles Net Income lorthe reportlng perfod las p¢r th¢ SLement of Finandal Actlvlties) 477 132 Adjustments for: Investment 8ainslllossesl Deprecièt40n and amortiSatiO Investment income Notlonal Interest in present value calcul*lon Repayment of loans advanced Advancement of108ns Repayment of pension schemes net of remeasurement costs Gain on disposal of fixed assets IlncreasellDecrease in debt(￿5 Decrease In credltors DeC￿￿e in provlstOn5 P4rt ￿$h used In wrntlng artlvltles 1.632 226 11.2151 27 59 12,2711 23$ li.1￿ 12S 1251 1298 11.467 199 11,486 121 12,857 11,9781 1320) 11.727} 12019) www.bathandwells.org.uk 34

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 Notes to the Financial Statements l Accountlng Pollcies The flnancial statements have been prepared under the historical cost accounting rules modified to include the revaluation of investments, and in accordance wlth SORP 2019, the FRS102 accounting standard and the Companies Art 2006. The DBF is a Public Benefit Entity as defined by FRSIO2. These financial statements consolidate the results of the charitable company and its whollv owned subsidiary on a Ilne-by-line basis. The subsidiary is Bath and Wells DBF Services Ltd. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by Section 408 ofthe Companies Act 2006. The surplus increase in funds of the parent charity for the year was £2.Im12022.. £1.8m deficit). The balance sheet of the subsidiary at the year end is made up of only a bank balance. A desktop valuation is carried out annually of Investment Properties by Greenslade Taylor Hunt. with a full external valuation carried out every five years. Any permanent diminution is taken to the income and expenditure account for the year; and 11. No depreciation or amort15ation is provided in respect of freehold investment properties. This treatment, as regards the DBF's investment properties. may be a departure from the requirement5 of the Cornpanies Act concernin8 depreciation of fixed assets. However, these properties are not held for consumption but for investment and the trustees consider that systematic 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 only one of the many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified. The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any principal uncertainties, related events or conditions that may cast significant doubt on the abilitv of the DBF to continue as a going concern. The Trustees make this 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 resource5 to continue in operational existence for the foreseeable future. The financial statements are prepared on a going concern basis. www.bathandwells.org.uk 35

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 The principal accounting policies and estimation techniques are as follows. (a) Income All income is included in 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 accuracv. Parish Share is recognised as income of the year in respect of which it is receivable. Amounts undertaken to be paid by the parishes are only accrued if either payment is received by 28 February in the following year or there has been a definite commitment to pay. 11. Rent receivable and parochial fees are recognised as income of the year to which they relate. 111. Interest and dividends are recognised as income when receivable, in the case of dividends that is when the DBF'5 right to receive the dividends has been established li.e. when the distribution has been declared}. iv. Donation51 grants and legacles are recognised when receivable lexcept in the case of any grants with pre-conditions of entitlement speclfied by the donor which have not been met at the year end. These are induded as creditors to be carried forward to the following year). Gains on disposal of fixed a55ets for the DBF'S own use li.e. non-investment assetsl are accounted for as other income. Losses on disposal of such asset5 are accounted for as other expenditure. vi. Stipends fund income. The Stipends Fund Capital account 15 governed by the Diocesan Stipends Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. The income is fully expended within the year of receipt and the legal restrictions. therefore. are satisfied. www.bathandwells.org.uk 36

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 {b) Expendlture Expenditure is included on the accruals basis and has been classified under headlngs that aggregate all costs related to that category. Costs of raising funds are costs relating to the temporary renting OLrt of parsona8es and investment management costs of glebe and any other investment properties. Charltable expenditure is analysed between contributions to the Archbishops, Council, expenditure on resourcing mission and ministry in the parishes of the diocese and expenditure on education and Church of England schools in the diocese. 111. 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 satlsfaction of the DBF, such grants being recognised 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 commitment. but not accrued as expenditure. Support costs consist of central managernent, administration and governance costs. The amount spent on raising funds and other actlvltles Is considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remainder is allocated primarily on the basis of head count. Pension contributions. The DBF'5 Staff are members of the Church Workers, Pension Fund ICWPFI and Clergy are members of the Church of England Funded Pensions Scheme ICEFPSI. The pension costs charged as resources expended represent the DBF'S contributions payable In respect of the year, in accordance with FR5102.Deficit funding for the pension schemes to which the DBF participates is accrued at current value in creditors distinguished between contributions fallirsg due within one year and after more than one year. Further details are given in note 27. www.bathandwells.org.uk 37

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 (c) Intangible fixed a55ets Computer software which is separable from the operation of computer hardware is classified as intangible assets in accordance with FRS102 ané 15 amortised to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of the asset's acquisition) of other software over their expected useful economic live5 on a straight-line basis at a rate of 25% per annum. (dl Tanglble flxed assets and depreclatlon Investment properties Any properties which are held for Investment purposes and rented out have been included at their fair value. 11. Parsonage houses The DBF has followed the requirements of FRS102, in its accounting treatment for benefice houses Iparsonages). FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The DBF is formally responsible for the maintenance and repair of such properties and has some lurlsdictlon 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 occupatlon Is vested In the incumbent. The Trustees therefore consider the most suitable accountin8 policy 15 to capitalise such properties at their cost or estimated market value at time of acquisltlon If received by glft or transfer. Depreciation is not provided on the foregoing propertie5 listed in lil and lill above for the following 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 expected residual value is not materially less than their carrying value. Buildings 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 before the end of their economic lives and disposal proceeds are usually not le55 than their carrying value. The Trustees perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount and any movements on the impairment are reflected in the SOFA. Houses financed by Value Linked Loans The DBF holds an equity interest in a number of houses provided for separated clergy spouses financed by value linked loan5 from the Church Commi55ioners. FRS 102 require5 the revaluation of loans annually to reflect the current market value of the equity interest. Accordingly. these house5 are included at estimated market value matched by the loan value (included in long term liabilitiesl. www.bathandwells.org.uk 38

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Other tanglble fixed a55ets Depreciation is provided in order to write off the cost Iless any ultimate dlsposal proceeds at prices ruling at the time of the asset's acquisition) of other fixed assets over their expected useful economic lives on a straight-line basis at the following rates: Leasehold Office buildings 1% per annurn Solar PV Pane15 4% and 5% per annum Fixtures and Fittings IO% per annum Office Equipment 20% per annum Computer Equipment 25% per annum {e) Fixed Asset Investments Fixed Asset Investments have been included on the following bases: Listed investments at their quoted bid price at the balance sheet date. ii. Unlisted investments at their market value at the balance sheet date, as provided by the CCLA Investment Management Limited. iii. 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 establish market value. In the intervening penod the DBF adjust5 the market value in the li8ht of information available If this is material. The DBF'S professional agents valued 33% of the DBF'S Glebe investment land assets at 31 December 2023. Gains and losses on disposal and revaluation 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 flnancial investments which must be held as capital. The Stipends Capital Fund incorporates the Stipends Augmentation Trusts (SATI fund. From 31 December 2019 the charity has operated a total return approach to the management of the Glebe land and listed and unlisted financial investments representing the DSF and SAT permanent endowment funds. Usin8 this approach, the charity is required to analyse the funds between the amount held for investment and the unapplied total retum. The charity Is permitted to allocate. from the unapplied total return element to income funds. such sums as the Dirertors see appropriate provided the Dlrectors 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 financial statements as a55ets of the DBF but are listed in note 29. www.bathandwells.org.uk 39

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 (fj Financial In5trurnents All loans and borrowings which are basic financial instruments and; i) which are due for repayment in more than one year. and ill bear interest at a rate lower than equivalent market rate. a￿ recognised at the present value of cash receivable / payable lincluding Interest). The DBF discount rate of 4% is used which is the rate of return which can reasonably be expected from DBF long tenn investments, and the effective interest rate amortisation is included in finance revenue l expenditure in the SOFA. Equity Loans are Included at market value. Ig) Funds The DBF'S funds have been grouped under the following headings.. Unrestrlcted Funds Unrestricted funds are available for any charitable purpose of the DBF. Designated funds are type of unrestricted fund which the DBF ha5 earmarked for a particular purpose. There are no legally binding restrictions and the DBF is free to re-designate should this be appropriate. Restricted Funds Restricted funds are subject to specific condition5 imposed by the donor, these conditions being le8ally binding upon the D8F. Endowment Funds Permanent endowment fund5 are a particulartype of Restricted Fund which must be held on trust to be retained for the benefit of the DBF as a capital fund. Where the DBF must permanently maintain the whole of the fund it is known as a permanent endowment. Where there is discretion to convert endowed capital into income it is known as expendable endowment. Ih) Key area5 of estimate5 and judgements The preparatlon of the flnancial statements requires management to make judgement5. estimates and assumption5 that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However. the nature of estimation means that actual outcomes could differ from those estimate5. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements: Useful economic lives of fixed assets Other than investment properties and houses provided for clergy, fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are a55essed depending on a number of factors including product life cycle5 and maintenance programmes. Residual value assessments consider issues such as future market condition5, the remaining life of the asset and projected disposal values. Basis of non-depreciation of fixed assets Depreciation is not provided on Investment properties and houses held for clergy use for the reasons stated above (note Idl. www.bathandwells.org.uk 40

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Revaluation of agricultural {glebe) and other land The DBF carries it5 agricultural Iglebel and other land at valuation with changes in valuebelng recognised in the SOFA. A full revaluation of agricultural land is completed every five 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 underlying the pension Ilabilitles The DBF has recognised liabilities in respect of deficit contributions to the two Church of England pension schemes in which it participates. The measurement of both liabilities is affetted by a number of assumptions which are set out in detail in note 28, including discount rates. future contribution rates and the duration of the deficit recovery period. Dlscount rates used in NPV calculations The Board Considers an appropriate discount rate to be used in NPV calculations is based on the opportunity c05t of income foregone from investments. vl. Recoverablllty of parish loans The Board has considered an appropriate level of provision for non-recoverablllty of loans given to parishes, estimating the potential shortfall in loan re￿iptS or on-going Common Fund payments. www.bathandwells.org.uk 41

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Ilnr•strfrt•d Funds R•rtrl¢t•d Endowmmt Yot•l Totst nds Fuhds Funds FK5nds 2022 G•n•r•l D•iltn•t•d ew) vooo 2• Paiish Contributions Parish Shar Current yearfs Sllwatlon Addition81 Payments Arrea￿ previou5 lQa15 Shortfall In ¢ontributions XO.$04 10.194 15 409 11.280 9.338 36 (1.4111 36 1.411 9.110 Totsl Parish Share recelpts represent 8&9% of the all￿atiOnI2022- 91.6%1 26 Otheroonatlo B@nef8rt Twst Foundatlon of St Mathi•s RME Ordinands Grant SMF Grèft Fundlng SDF G￿n¢ F￿r￿ing Cost of Ilvln8 oner4y grant Low in¢ome CcthmunitiÈS F¥Jndin Post of Flrst Rèsponsfoility Donailons,Gr8rfs, Sponsorshlps & Legacl•s 106 121 Js 401 62 278 158 30) 278 158 330 118 53 207 118 76 134 1,408 3 ChMltsbleArti¥ltle5 Statulory lees and ¢haplairt¢y irrfome Course fees and other 610 49 659 610 76 574 62 636 27 27 4 OlherArtivI￿es Rentsl IrKome from ¢ler8y ho￿￿. sch¢)ols and th• Diocese L)ffice Support s¢Nieès 762 218 619 178 797 298 516 S In¥esbhert In¢•A)e Oiwbdrtds re¢•ivabl• l#teresi re¢eivable Notlonal Interost re nei present vèluè Income frcqn Glebe land and propgrtles 161 107 57 265 699 125 53 1271 11251 551 348 975 127) 551 754 164 265 6 otherlfttomt Galn on disposal of propertles Solar PV Panel FIT IrKgrn* Other 541 137 1.281 I￿22 137 2.014 118 678 1281 1.961 2,135 www.bathandwells.org.uk 42

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 Vnr•strlrted Funds ￿$tr• Endo D•slt. Ict•d m•nt G•rt*ral nated Funds Funds vooo £'(wx+ E'ooo eooo T•t•l Total Funds Funds 2023 2022 £'ooo £'ix)o 7 Costs of raI￿n% funds Stockbrokerfs lees Value Llnkedloans intwest Interest cost & exp•ns•s: penslon schemes Glebe Land & Clergy Houses letting costs io 12 25 li 12 234 234 164 257 251 8 ¢harftabl• •rtlvlib•s Contribution to Ar¢hblJh•px' C•uncil Training fLTrr Ministry ational Church Re5ponsibilltles Grants and provisions Mi5si0n 48ency pension contributions Retired Clergy Housing (CHARM) & Grants Poolinq of ordFnand candidatés. costs 92 230 301 393 393 240 33 16 13 156 156 io 521 iio) 822 149 781 301 R•s•ur¢in2 Mlnistry •Trd Missl•n Parfsh Ministry. Stipends and Social Security Pension contributions Housin8 Costs Removal. resettlement and other 8ranis Other expénses 5.099 1.308 106 364 5,569 5,617 1,308 1.413 1,824 1.813 167 si 186 186 165 33 2S 8,920 9.033 4,656 4.673 13,576 13.706 106 531 52 731 158 1,262 51 Support for mlnistry 3,866 12,098 Éxp•ndlture gn Edueatlon Church Schools: Administratithn 419 13,063 158 1,563 14,842 14.906 www.bathandwells.org.uk 43

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 UnTe5tr1¢l•d F￿￿￿¥ RortTr Endw lrt m*nt Total Total fvn& Fwds 2023 2022 eots) rc(•) G•n•r•l Mted Furtds Fund5 * G•ITrsl{los￿I on Aswts Vnrea115ed g3lns111055es1 after ievaluaiion I I Realised 8aTn>/lJossesl OA di¥ku•l 93 131 17 J16 L303 1281 75 4529 111001 11711 1fv92 112711 17 116 I l includes £OAm gain In relation to the rew1v•t1￿ of Gl•be A8iiculturnl tW￿l2022- eO.2ml. IQ An•lysls IX EwndTr¢ur• In¢ludlnt All•¢•t••fv CISupp•rt Corts Grant A¢tSvlths und•rt•k•n fvndkn¢ Dlr•¢tly •stlvllk• T•t•l Tot•1 2022 £tyK+ f'c 251 Colts Raising Fund5 Charttable ActSvities: trfbutlons to Athlshops. Coundl kewur¢kng mlnlstry •rtd mlssioh EthJtation 282 301 11fj63 389 634 521 649 781 13,576 13.706 U65 S5 lJ70 15 124 15,157 UMestri¢ted Funds Restr- Endow- Tgt•l Total Oe$l£" l¢t•d m•nt Funds Funds Genor•l n•ted Funds Funds 2023 2022 eooo £'ooo to￿ £'ooo £'o 1.204 1,204 1.213 55 54 11 An•lysis Of Support Costs Central Admlnistration Support for Schools Govemance: External Audit Professional Fees Dio¢esan and General Synod Expenses 55 38 22 17 17 1320 1,302 57 www.bathandwells.org.uk 44

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 12 An•lysls Of Grants Made Total Grants T•t•l Inst- No. Of to Indlvl. Itutional 2023 2022 *) N•tional Chur¢h R•sponsibilities From Uhrestrieted General lunds to-. Arthbishop5' Council, General Synod, etc. Training Ordlnands Gr8nt5 and Provisions Inter.dio¢esart support of Mission ￿encY clergy pension contributions CHARM National Poolir)g adjustment Grants du•ls r•nts £'ooo eooo £'ooo 230 230 240 393 393 393 40 33 13 13 156 156 iioi iio 16 148 (49) 781 bl Goneral Grants From Unrtstri¢t•d Gen•r•l Funds t•:. Ordtnands in training Ener8y 5UPPOrt 8rants Somerset Ch￿r¢he5 Together Bath and West Show Tent 21 83 297 297 354 268 38 105 297 337 628 From R•stricted Funds to: Zambian Dioceses aergy lin¢ludin8 rettred and clergy widow5) li li li li 14 22 T•t•l Grants Pay46le 116 1 170 1,431 www.bathandwells.org.uk 45

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 13 Trustees and Related Parties In 2023 the trusts which are administered from the DBF'S registered office paid management charges of £4,496 to the DBF12022 - £4,496). The Rib Trust made a grant of £38,OOOto the Bo3rd12022- £37,500) towards the Archdeacons. working costs. The Foundation of St Matthias made a grant to the Diocesan Board of Education of £34,50012022 - £34,500) towards the work of the School RE Advisers, Resource Centre and Further Education development. There were no amounts outstanding at the end ofthe year. Trustees. emoluments No trustee received any remuneration for services as trustee. 11 trustees12022 - 101 were reimbursed with a total of É17,52812022 - £10,967> for the cost of travel and sub51Stence incurred in the course of services performed a5 trustees in respect of General Synod duties. duties as archdeacon or arealrural dean, and other duties as trustees. vw.bathandwells.org.uk 46

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 13 Trustees and Related Parties Icontinuedl Stipends and other benefits received by trustees in respert of their capacities other than trusteeship, serving as ecclesiastical office holders through the Church Commissioners (at the expense of the DBF unless indicated) were: Office Holder Indfvldu•l sti￿ndIary p•¢kage Fund4d by the Church Commlssloner$: £48.389 stipend & defined benefit pension scheme, livin8 accomodation & car for offioal USÈ. Funded by the Church Cornmlsslon•rs: £39,477 stipehd. cèr for official use & defined benefit pension scheme Funded b the DBF: Livin attommodation The Bishop of Bath And Wells The Rt Revd M Beasley The 8ish¢p ofTaunton The Rt R•vd R Worsley The Ven S Hill The Ven A Gell The Ven DrA Youin Revd M Andrews Revd D Keen Revd A Fulton Revd J Haslam Revd J Laurence Revd R Drivel Archdeacons £38.976 stipend, defined benÈfit penslon scheme and living accomodation. £28,805 stipend. defined benèfit pension scheme and livin8 accomodation. Revd R Mile5 £28,639 stipend. defined benefit nsion scheme lus housin In total 10 (2022 - 111 trustees recelved stipends and pension contribut40ns as follows: 2023 2022 Stipends Pension Contributions 298,634 66.366 307.074 105.351 412.425 www.bathandwells.org.uk 47

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 14 staff And offi¢e h•ld•rs 2023 2022 144 Staff Costs Staff costs durine the year were a5 follows: Wages ond s¥l•ries Stipends pf ordained st4ff membors N•tional ir)suran¢e contributions Pen￿On costs 2.257 2.088 213 237 201 214 2.503 Duri￿ the year. the 08F made termination payments in respect of one members pf st¥ff {2022- 1) totèlllng £4.205 f2022- £12.099). Thls amount ts Included Sn 5tsH costs above. The avèrège number of emplo￿eS durlng the yèar was: L•y Workers Mission ￿Pport and Mln15try Development Non 5tipendiary ministry Including plone•r5 Other support services Edv¢8tlon No. 31.7 30.0 12.0 28.4 12.3 82.9 30.8 14.0 85.7 The average number of employees during the yeaf. based upon full-time equivalents, was: ('1 L•y Workers Mission Support and Mlnlstry Oevelopment Non stlpendiary mlnistry Including plonoqrs Other supwt seryices Edu¢ètion No. No. 19.8 18.7 24.4 11.9 22.5 11.7 62.0 I I Including 2.0 {2022 . 1.01 staff ￿0$e tlme was recharged or funded by exlemal or8anisations 01 the avera8e number of employees. 44 knEre based in the Dioce5ean office12022 . 591. 9 were based in other locatioAs12022 - 131 and 11 were based in Parishes and Deanerles 12022- 161. Misslon Support and Minlsty Oev@lopmonl is mad@ up of thre@ teams: Deanery artd Parish Support. Mission Oevelopment and M•nistry Training and ForniatSon. Other support services is made up of seven te•ms: C&)mmuni¢*tions, Facilittes. fin￿ce, HR, Property. Sgfegu•rding and Secretariat. Education ts made up of three tearns: Schools Organisa¢lon, Schools EfFectiveness and Growin8 Faith and Everyd•y F¥ith. The numbers of staff whose emoluments linc1￿1￿¥ benefits in kind but excludine nslon contrfbutlons) amounted to more than £60.000 were as follow5: 2022 £60,001- £70,000 E70,￿l- £80.( Penslon contfibutlons of £21.90812022: £22.623} were made for these employees. www.bathandwe115.org.uk 48

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 14•St•fl Corts ws: 2023 2022 Sal•ries/ Silpends National Insurante contrIb￿lonS Pension Corttributions 278 217 27 23 33 28 389 267 Expense5 14b Offite holders 2023 2022 rre Offiee holdeis not employees The average number of stipendiary clÈr8y holdin8 paro¢hi•l. d@8nery or arthidiaconal posts in tk dlocese was: At a eost of: 178 Stlpend5 & Hou51nR Allowances National Insurance Contributlons Apprehtlceship Le Pensions contributions 5.054 415 23 1208 5.119 429 23 1,611 7,182 The number of FfE ￿lpendi￿ryclerg¥ in2023 and 2022 has reducod partly duè to th• cofflmenced redLrctions In slip?ndiary posts. The average level ￿ v8canci*s In 2023 was estlmated at 2712022 . 251. being 16.8% of 311 posts {2022 - 14.2% of all pg51$1. www.bathandwells.org.uk 49

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Unr•rtrl¢tod Fufids R•stTr Endo DesiE- irted ment n¥t¢d Funds Funds £'ooo £'ooo £'ooo ¢000 General IS Analys1$ 01 Tf•nshrs Between Funds Transfer to Tanglble Flxed A55ets fund Transfer from DÈsignated Pioneer project fvnd Unapplied total return drawdown Net transfer parsonages to/lfrom} DPA account 1338) 338 (931 93 1,360 (1,360} 1.219 1.2191 12 12,579 Computer S¢)ftware 16 IntanElble Flxed Assets Cost At l January 2023 Addltlons Disp05a15 At 31 Deetmber 2023 171 171 Amortisa*ion At l January 2023 Charge for the year Dlsposals At 31 December 2023 166 Net book value At 31 Deeember 2023 At 310ecember 2022 www.bathandwells.org.uk 50

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Freeholdl leasehold land and 8uildin8S Sola¥ PV Ponels Ofl£¢e Equlp't Totsl 17 Tangible Flxed A55ets (ost At l Jamiary 2023 Additions Disposals At 31 Decemb•r 2023 732 1.264 21 19731 13} 729 19761 68.214 1,285 Dèpreclatlon and Impaimnt Depreclation at l January 2023 Impairment at l January 2D23 Impalrment d￿rge forthe year Depreclatlon tharge for theyear Oisp05als At311)ecember2025 81 711 303 642 1.026 711 36 223 (i) 1.9YJ li} 339 811 810 Nel bookvalue At 31 D￿mbar 2023 310Kember 2022 65,389 391 415 66.254 65,613 429 622 vw.bathandwells.org.uk 51

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 21)23 ))23 2022 2022 Freehold l Leasehold Land ¥nd Buildings Freehold eeneflo propeity., No. P4ts0na8e houses 167 4L524 41,770 Glebe property: Curate< houses other houses 27 7,832 6,581 14,41J 26 27 28 7.178 14.678 Corporate property: CiJr4tes' houses Otherhou5e5 Houses bou8ht wtth val. linked loans lat valuation) Edgrnton house 563 $63 5.474 523 22 5.162 523 281 281 6A41 28 6,529 ieosehold Long leasehold Total Freeholdl Leasehold Land and Buildings 1611 65,389 1636 65.611 252 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 extinguished. These are stated at valuation, as is the related loan liability Inote 221. Of the total land and buildings at 31 December 2023. 247 properties1£64,866kl are valued at cost or deemed cost12022- 2491. and three properties1£523kl at valuation12022 - threel. Propertie5 are subjert to a five-year cycle of survey and consequent repairs are charEed as expenditure. During the year no buildings were impaired. where their market value was estimated to be below their cost. www.bathandwells.org.uk 52

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 De￿mber 2023 Airlcuttur¥l Oth•r land Unllrt•d L•nd & Prtperty Inv•rtm•nti Imi¢stm•nts Llst T•t•l 2023 Ila Flx•d Ass•ts In¥•stm•nts At l J••ury 2023 Nxldiions Dlsposals Tr•D5fers / Reclassiflutions Rvluation Al 31 2023 20,159 639 6.737 14,168 2.189 16.7731 41,703 13891 17,1621 219 19,989 633 7,870 1.632 38.362 639 Cl￿t t 81 D¢ember 2023 Cost at 31 Oe¢ember 2022 NOI knowt) Notknown Not knowt) Not known 4,146 4,146 9,569 13.810 IDv•Jtm•nts ¢omprl¥ Lirted Inv•slm•nts (Equitiu) UK Investments 2023 2022 3.761 7.072 10.833 Non.UK Irwestments 7,276 Ust•d Inv•rtments Iunit Tfustsl UK Inve51menls Lirt•d I￿rtM￿ntt qFix•d lfit•reJl) UK Investmenls Non.Vk InvestmEnts 274 288 4867 927 2.1114 2.027 1.020 3￿7 Lht•d Inv•slm•nts Tot•1 10.364 14.168 11511 Unllst¢d Inv•rtm•nts 322,418 Central 804rd ol Firw•nce of the Church d England Investment F4Jnd Share 12022- 322.4181 3.139 COIF Charlty Inyestrnent Fund IncoTh Sharès12022- 3,1391 2,Cth) Cèrfral 8oard of Finance of the Church of England Fixéd Interest F￿fid Sha {2022. 2,CWI Sorhèrset Sovi￿5 gnd Loans Ltd 6,662 62 57 16 Is 7,370 6.737 Il¥) Other L•hd *nd Property 2023 2022 Glebe Property Other Lafvd 610 29 610 29 639 639 www.bathandwells.org.uk 53

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 18b Application of the Power of Total Return on Investrnents A5 disclosed in the Investment policy of theTrustees report from 31 Decernber 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 IDSFI and Stipends Augmentation Trusts (SATI element of the Stipends Capital Fund in order to maximise total return and apply an appropriate portion of the unapplied 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 December 1995 and valued at £8.571m and £0.688m for the DSF and SAT funds, respectively. This was the amount held in Glebe property and listed and unlisted financial investments at this date. The UTR was calculated a5 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 introduction of any new investment in the portfolios since initial valuation. Trust hr lTrv•rtrn•nl Tot•1 EndowmAt 111 Dio¢wn Stipends Fund IDSF) At lstJ4nu•ry 202a 8ase val¥ of ￿mI0￿•￿ter￿0￿Ment Unapplled Totsl Retum T•t 1s.iio 1s.iio 20.729 3SA39 20.729 20.729 Is.1 Movements In the reportlnE p•riod Indèxation of bsse level ol endowrnert Unapplied totsl retum allocated io income In the year Additlon•l VTA •lloc•ted 14y purthase of prgperty Invstrnert return.. dividends and Inte￿$t Investment retum.. Glebe rents Investment Tetums.. Realised and unrealised e•ins 8nd IlossÈsl Less Inv•stmek)i m¥nè8emeAt costs 11.2691 11.303) 11.3031 113 436 550 132) 213 436 550 1321 136 Totsl At J181 D¢•mb•r 2028 B•se ol the ptrrn¥n4nt •NkniYme d 5ndexatlon of base level of endovfftonl Unapplied Totsl Reium Totsl 16,379 16.379 19.323 19.323 19,323 35. 16379 During the year, there was a transfer of £1.303K from UTR to income funds for expenditure in relation to the Diocesan Vision, in line with the Diocese Total return policy of 4% of average endowed investment value plus Glebe rents. www.bathandwells.org.uk 54

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Truit lor In¥•stmNt Tgtsl Endowm•nt 1111 Stip•nds Autm•rt•tlon Trysts1SAT) At 1st J•nu•ry Z023 Base value of pemanent eTrwm•nt Unapplled Total Retwn 1,213 1.213 131 1,343 131 131 1.213 Mo¥•m•nts In ¢h rptsrtln£ p•rSod Indexation ol base level gf 4ndowTrtnt Unapplied totsl i•tum •llK•l•d to Income In th• y••r Investment retum= dividènds 8tsd ifiteresi Investment ieturns: Realised and unre811sed 88in5 0nd1105sesl Less in¥ostment management cost5 Total si 1511 1571 32 57 1571 32 57 23 At Jlst D•ttmb•r Z023 8as* of thè pem)anent end¢)wnoTht Unapplled Tot•1 AeliKn Total 1.264 1.264 107 lJ71 107 107 Durin8 the year. there was a transfer of £57K from UTR to income funds for expenditure in relation to the Oiocesan Vision. in line with the Diocese Total return policy of 4% of average endowed investment value. 181 Subsldlary In¥eitments Subsldlary name Baih and Wells DBF SeThices Company numb Share Capltal 12396582 Limited by guarantee B&WDBF sole member The transactions and balances for the subsidiary were as follows: 2023 so so 2022 46 46 106 106 Inome I£OtxisI Expendlture l£l)OOs} Assets I£O(X)sl LiabllStSes {£000s) Net Assets I£OOOs) www.bathandwells.org.uk 55

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 2023 2022 19 Debtors Duo within one y•r 8) Psrish Share b) Central Board of Finance Oeposlt Fund Loans c) Loan5 to PCCS from Designated Fund or FCG dl School Loan5 el Other Loans dl Closed School Expenses and other School debtors fj Other Debtors and P￿paY￿ents gl Equlty Loans 2S3 393 66 15 74 73 131 601 59 541 1.683 L635 Due aft•r one y4•r b} Central Board of Finance Deposlt FUFKI Loan5 (') c} loons to PCCS from Designated Fund or FCG (') 62 253 315 97 306 403 Totsl d•bt•rs 1.998 1038 I I these amounts are stated èt net present value usln8 a discount rate of 4% Debtors Notes: (a) Parish Share Parish Share debtors comprise balances of requested contrlbutlons outstandlng which have been paid in full after the year end or where an arrangementto pay has been agreed. (b) Central 8oard of Finance Deposit Fund loan5 These are loans made bythe DBF from the CBF Deposit Fund under the Church Funds Investment Measure 1958 for forward lending to parishes and are therefore Shown both in Debtors and Creditors. Loans are normally provided for 3 period of five or ten years and are repayable bv equal annual instalments. The rate of interest is equivalent to the monthly average rote declared by the CCLA CBF Deposit Fund plus 0.55%. Ic) Loans to PCCS from Diocesan Loan Fund These are loans advanced from the £lm designated DI0￿San Loan Fund repayable over various terms up to 20 years and at various interest rates. At 31 December 2023, the significant balances were: A £400.LK)O loan was provided to Nailsea HolyTrinity PCC on 28 October 2010 for the purchase of the 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 annually in arrears. The term of the loan was extended in 2015 to Ortober 2024. The loan is repayable in variable annual instalments and the present value of the balan￿ at 31 December 2023 was £37,778. The DBF holds a legal charge on the property, dischar8ed upon repayment of the loan capital and accrued interest by the PCC. www.bathandwells.org.uk 56

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 A £225,000 loan was provided to Keynsham PCC on 23 November 2010 forthe purchase of the former rectory at l The Park, Keynsham upon its sale by the 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 present value of the balance outstanding at 31 December 2023 was £49.372. The DBF holds a legal charge on the property, discharged 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 221. 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. This loan had an outstanding balance of £279,342 at the year end. (d) School Loans The DBF acts as'bankerf to school governors for capital and repairworks 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 8overnors themselves for their respective {el Other Loans This amount includes loans to individuals from restricted charitable funds and staff car loans. If) Other Debtors and Prepayments Thls figure is made up of sundry debtors, prepayments, accrued interest and dlvidends, rents recoverable and expenses on closed schools to be recovered upon sale. and accrued bond interest. Igl Equity Loans Equity loans are made to retired clerBY and clergy spouses to enable them to purchase property on a shared equity basis. At 310ecember 2023 the value of loans advanced amounted to £485,007 in respect of three propertie5. 2023 2022 20 Ass•t5 h•ld for re￿ Closed churches èwaiting disposal 151 The value represents an estimate of expected sales proceeds receivable. www.bathandwells.org.uk 57

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the yearended 31 December 2023 Unre51rirte Restiicted Funds Endowmenl 2023 Fwlds Tot•1 2022 Totsl 21 Cash al bank and on deposlt effj) eth) r( 233 L393 1.279 2.298 341 Cash on deposit Cash at bank and In hand Cash hel¢J by broker Investment 676 U34 1.280 158 179 1231 1.764 3.918 2023 2022 vooo £.( 22 Credltors Due wlthln on• year al Bank loans Fund for Church Growth grants approved not yet paid Closed Church Schools Other Credltors •nd Accruals 3,316 35 492 2,710 6,553 35 522 833 1.855 Due after ono yoar 4) Bank loans b) Central Board of Finance Deposit Fund Loans {') cl Value Linked Loans 3.053 929 523 4,505 3.323 1.022 523 4,868 I l these amounts are stated at net present value using • discount rate of 4% Creditor5 Notes (a) 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 £200,000 loan was taken out with Natwest bank in 2016 to finance a house purchase. The term of the loan 15 10 years, at a fixed 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 with Natwest bank; Pioneer House mortgages. Four loan agreements are entered into in order to finance the purchase of hou5e5 for Pioneer Ministers. The terms of these agreements are each either five or six year5 . These loans are secured on the pioneer houses. The balance outstandin8 at the year end was £689.948. www.bathandwells.org.uk 58

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 Flourlsh House purchase. A loan of £2,575,000 was agreed to fund the purchase of Flourish House. the new Diocesan office building. The terms of this agreement is seven years and the interest rate is 1.53% above base rate. This loan is secured on Flourish House. This loan was paid off in full in the financial year. Parish loans. A loan of £290.000 was agreed in order to provide an onward loan to the PCC of Heathfield with Cotford St Luke (see debtors note 191. The term of this loan is five years and the interest rate is 1.65% above base rate. During the prior year. this loan has had a capital repayment holiday applied to it, extending the loan period for a further nine months. This loan is secured by way of a third party charge on St Luke's Centre on land at Cotford St Luke. The balance outstanding at the year end was £236,604. (blcentral Board of Finance Deposit Fund Loan This loan was made to the D8F from the Deposit Fund underthe Church Funds Investment Measure 1958 for forward lendin8 to parishes. In 2016 £lm was loaned to the 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. Repayments have been made in the year and the present value of thls loan was £929,356 at 31 December 2023. The rate of interest is equivalent to the monthly average rate declared by the CCLA CBF Deposlt Fund plus 0.55%. Icl Church Commlssioners, Value Llnked Loans The loan5 are repayable either when the houses concerned are sold or cease to be occupied by a licensed lay worker or cler8y spouse whose marriage has broken down. Interest is charged by the Commissioners on the amount loaned initially and borne by the DBF, rising annually by the increase in the Retail Price Index. The loans are represented by Freehold land and buildings (note 171. The Diocesan Annual Report and Financial Statements Gulde recommendsthat the loans should be revalued annually in line with the basis adopted by the Church Commissioners. The recommendation has now been adopted bythe DBF and the correspondin8 fixed assets (see note 171 have been revalued as a separate identifiable asset class. www.bathandwells.org.uk 59

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 At Expend- R•va At 01.0123 Ineome Iture Tr4nslers u•tlon 31.12.23 £'ooo £'ooo rooo £'ooD £'ooa £'ooo 23 Summ•ry Of Fund mo1￿mentS Unrnrtrleted Funds (a) General 2.381 12,277 113.320) 1.022 2,381 12R77 113,320) IP22 224 224 2.584 2,584 DesScnit•d Funds (b) Tangible Fixed Assets Fund (c) Loon Fund (d) Fund for Church Growth (e) Pastoral Care & Counsellin8 Scheme (fj Mission Developrnent Fund (g) Benefact Trust (h) Othèr DÈsign8ted 6,009 500 47 171 577 (271 338 6.320 500 47 17 193 459 (251 (106) 193) 106 7.312 iii (158) 17 7.527 Tot•1 Unrqstrfrtod Funds 9,693 12,388 113N78) 1,267 241 10,111 Notes on Unrestricted funds (al General Fund The General Fund reserve represents those assets held by the DBF for carrying out it5 8eneral activltles. It provides the assets and liquidity for the DBF to carry out its objectives, including statutory compliance, administration of funds and some housing. (b) Tangible Fixed Assets 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 clerBY houses and office equipment: le55 creditors held for the specific purpose5 of financing these assets. (c) Diocesan Loan Fund £lm wa5 transferred to this fund in 2014 to allow parishes the possibility of applying for loans to assist with their capital projects and other initiatives. This fund has been reduced to £S00k. (d) The Fund for Church Growth IFCG) exists to support local mission and outreach in the diocese. (el The Pastoral Care and Counselling Scheme was set up in 1993 to provide trained therapists and counsellor5 to support clergy and their family in the diocese. If) The Misslon Development Fund exists to resource the developing strategy into the future and to enable applicatlOn5 to the National Church's Strategic Development Fund. Ig) Benefact Trust recurrent grant 8iven to support misslonal work within the diocese. This fund has been desi8nated to financially support providing ministry in areas of deprivation. Ih) Other designated funds consisting of amounts desi8nated from the General Fund to be spent on specific projects by departments. www.bathandwells.org.uk 60

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 At Expend- R¢val- At 01.01.28 Incom• Itur¢ Transfers u•tl•n 81.12.23 £'QOO £'DOO £'OOO fOOO É'OOO £'OOO 23 Summ•ry ol Fund Movements I￿ntInued) Restri¢ted Funds lal Schools Income Fund Ibl Dioces¥n Pastoral Account Icl Support of clergy and dependants Idl Retlred clergy funds le} Porlock Wyld Trust Ifl EdBinton Trust 181 Zambla Link Ihl Modem Slavery link 11} Smith Bequest UI DBE Restrlcted Grants Ikl Abbey House Fund (l} Strategic Development Fund (ml Othèr Restricted T•t•l Restricted Funds 179 147 (168) (1391 1.219 131 18) 226 610 298 1,989 212 16 15 48 79 181 190 219 Is (18} 216 381 io 30 421 32 62 {55) 13) {394) 796 {775) 1.667 (1,563) 63 301 93 98 2,106 1.312 116 3,638 Notes on Restricted Funds: The income funds of the DBF Include restricted funds comprising the above unexpended balances of donations, grants and investment income held on trusts to be applied for specific purposes. la} Schools Income Fund which may be used forthe same purposes as the Schools Capttal Fund (see Expendable Endowments) and may also be used for any of the following: The provision of advice, guidance and resources for the management of or education in any relevant school in the diocese. The provision of services for the carrying Qut of any inspertion of a school in the diocese required by Part l of the School Inspection Act 1996 To defray the c05t of employing staff in connection with -the application of income of the relevant trust assets 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 557110} of the Education Act 1996 a relevant school includes an Academy www.bathandwells.org.uk 61

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 (bl Diocesan Pastoral Account {DPAI made up from the sales or transfers of churches and parsona8e houses which have become redundant under pastoral re-organisation. The purposes of thè fund ère laid down in Sections 93 and 94 of the Mission and Pastoral Measures 2011: the main ones bein8: Costs incurred for the purpose of the Measure except for salaries of regular diocesan employees. Costs of disposing or maintaining houses or churche5 vested in the DBF or Commissioners. For the benefit of another diocese or transfer to the DSF Capital or Income Fund. Ic} 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 dependant5. Id) Retired Clergy Funds to be used to provide assistance generally to retired clergy. lel Porlock Wyld Trust being accumulated income to be used for the same purposes a5 the trust apital see Endowment Funds If) Edglnton Trust being accumulated income to be used in the maintenance of a residence for retired clergy. Ig) 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 UnL whlch was given to put towards projetts which focuse5 on dealing with issues of modern slavery across the diocese. {1) Smith Bequest to be used for lay mlnlstry lexcludlng training for the Ministry) and in-service clergy training. lil DBE Restricted Grants consisting of the balance of restricted grants and donations to the DBE. {k} The Abbey House Fund to be used to give support to both laity and clergyto enable them to attend retreats and quiet days. {1) Strateglc Development Funding being funding received from the national church. {ml Other Restricted consistin8 of the balance of restricted le8acies, grants and donations to the DBF. www.bathandwells.org.uk 62

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 At expend- R•v•l. At 01.01.23 In¢om• Iture Transfèrs uatSons 31.1223 £'ooo £'OOO £'OOO £'OW £'OOD £'OOO 23 Summ•ry Of Fund M¢>voments IEontlnued) Endowm•nt Funds Expond•blt Endowmont lal Par50nage Houses Fund Ibl Schools Capital Fund {cl Porlock Wyld Trust Idl Retired Clergy Funds 41,770 661 996 125) (1,2191 41,522 661 131 320 12 143 29 349 42,882 996 (25} (1,219) 41 42,675 P•rman•nt £ndwiment (el Diocesan Stipends f und Capital (n stipends Capltal (fl General Capitsl If) Support of Ordinands 18) Crokat and Cowley Trusts {hl Ed8inton Tw5t 111 Other Pern)anent Endowment 45,343 1.612 787 285 265 154) 11.303} 1.051 45,322 {571 1.876 861 74 42 165 15 372 24 396 61 67 48.382 91,264 1,546 350 (581 11,360) 1,234 48,748 (83) 12,579) 1,275 91,423 Tot•1 End•wmnt Funds All Funds 103,063 15.303 (15,124) 1.632 104,874 Notes on Endowment Funds: Endowment funds are held on trust to be retained for the benefit of the charlty as a capital fund. Where the whole of the fund must be permanently maintained it is 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 lal Parsonage Houses Fund represents the value of benefice houses at the Balance Sheet date, together with the Parsonages Building funds held by the Church Commissioners. The houses are used to provide accomrnodation for the parochial clergy. The diocese is not free to dispose of the houses except in accordance with the appropriate measures. There 15 provision for the net proceeds of sale to be applied to either the DPA or DSF capital once a disposal has been effected. {bl Schools Capital 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 restrirted under Section 17 of the Education Act 1993. The uses include the purchase. erection, maintenance and improvement of any school or teacher's house in the relevant area. www.bathandwells.org.uk 63

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 (c) Porlock Wyld Trust relates to the Parsons Hill Estate {since sold) was left to the DBF, as sole trustee. "upon trust for such charitable purposes connected with the ecclesiastical parish of Porlock as the Lord Bishop of Bath and Wells in his absolute discretion thinks fit- There is no restriction on expenditure of capital. (dl Retired Clergy Funds: Thatcher Trust is to be used for purchase lor repair/ maintenance) of accommodation for retired clergy or the widows or augmentation of income for such persons. Balance £38,162 as at 31 December 202312022- £41.7521. Elwell Trust is to be used for the grant or augmentation of pensions to retired clergy at anv time beneficed in the diocese. Balance £11.133 as at 31 December 202212022 - £11,133). Edwards Trust relates to a property which was given to the DBF in 1977, as sole trustee, to be used forthe accommodation of retlred 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 cleriy housin8 generally. Balance £295,648 as at 31 December 202312022 - £270,224). Permanent Endowments (el Diotesan Stlpends Fund IDSF) 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 Endowments 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 as gifts. bequests and donations. The main function of the fund is to produce income for the stipends, 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 8lebe,' improving parsonage houses and discharging any loans made by the Church Commissioners underthe Endowments and Glebe Measure 1976. lfj Stlpends Capltal, General Capltal and Support of Ordinands These funds are made up of the capital o* a number of trusts which are represented by fixed asset investments. Stipend5 Capital income 15 restricted and can be used only to augment clergy stipends. General Capltal 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. Igl Crokat and Cowley Tru5t5 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 wa5 sold in 1997 and the other in 2001. A resolution was made by the DBF in 2001 to modify the purposes of the trusts so as to make provision instead for assistance generally to retired clergy. {hl Edginton Trust comprised a property for use as a residence for retired cler8y. This was sold in 2001 and a replacement house was purchased In 2004 at Frlary Close, Clevedon. www.bathandwells.org.uk 64

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 (51 Other: Mi55 S M Osborne Trust- £1,000 was left to the DBF. as sole trustee, to apply the income "by way of grant in or towards the repair of fabric of any ancient parish church of hlstoric interest and beauty in the diocese" Balance £1,448 as at 31 December 202312022- £1.3711 Dorothy Stuckey Trust - £2.000 was left to the DBF, as sole trustee, to apply the income for upkeep of fabric of the parish church at Yatton or toward the malntenance of an a5S15tant clergyman or both. Balance £22,809 as at 31 December 202312022 - £20,847) Miss M A ReÉs-Mogg Legacy - The legacy dates from 1935 and the income only can be used for the assistance of necessitous clergy and their widows and orphans. Balance £45,346 as at 31 December 202312022- £41,447). vw.bathandwells.org.uk 65

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Y•ng. & Int•ng. Invest- thh•r Flxad A$￿tI m•nts AM•ts Credlt-lnterfund Net ors DR I ICR) Assets £,0￿ £'OOD 0￿ £'wD £'ooo vooo 24 Summary ol Ass•ts By Fund Unrestri¢ted 6ener•l Funds 1.279 2368 12.641) L579 Deslgnated Tangible Fsxed Assets Fund Loèn Fund Fund For Church Growth Pastoral Care & Coun511ing Scheme lission Development Fund Other Deslgnated Tot￿ Clslenttd Funds Rostrleted Funds S¢h¢ols Income Fund Diocesan Pastorol Account Support 01 Clergy And Dependants Retired Clergy Funds Porlock Wyld Trust Edginton Trusi Zambi? Link Modem Slavery link Abbey House Smith 8equest 08E Ro5tricted Gr8nts Other Restrttted Total R•stYict•d Fund% End•wment Funds Expendable Endowment Parsonage Houses Fund Schcols Capital Fund Porlock Wyld Trust Retired Clergy Funds Pormanont Endawment DI￿esan Stipends Fvnd Captsl Stipends C4pitsl General Capital Supwrt of Ordinand5 Crokat And CobvlÈy Trusts Edglnton Trust Other Permanent Ertdofftent Total Endowm•nt Funds 10.039 13,719} 6,820 370 47 130 47 191 459 197 459 10,039 197 13.719} 126 7J27 226 1.989 73 226 1.989 167 36 52 66 216 124 216 352 421 $9 117 3,638 39 117 555 2,959 124 41,524 41,524 661 143 793 144 337 {1321 12 14.413 32A43 1.191 861 47 173 274 70 56,094 36,381 66,257 38,362 6 913 {1,5341 45,322 1.875 47 157 1351 396 67 91.423 105,172 1,705 All Funds 6,360) www.bathandwells.org.uk 66

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 25 Commitments la) Capital Expendlture 2023 £'ooo 2022 £'o Contracted for, not yet completed Authorised. not yet contracted for Total Capftal Commltments (b) Loans At 31 December 2023 the DBF had commitment5 to zero parishes12022- zero) to provlde loans totalling £nil12022- £Nill in relation to the CCLA Diocesan Loan Scheme. During 2021, Bath Abbey PCC entered into a loan agreement for £400.000. to be made available in tranches of £iixik. At the year end £300k ha5 been drawn down. The loan is repayable from the first anniversary of the drawdown and interest is being charged on the loan of 2% above variable bank base rate. Ic) Operatlng Lease5 2023 2022 £'ooo Payable not more than one year Payable more than one but not more than flve years Total Operatln8 Leax Commltments 26 Post Balance Sheet Events and Contingent Liabllitles There were no post balance sheet events or contingent liabllltles at the balance sheet date. 27 Pension Costs The Church Workers Pension Fund ha5 3 section known as the Defined Benefits Scheme, deferred annulty section known a5 Pension Builder Classic and a cash balance section known as Pension Builder 2014. (a) The Church Workers, Pension Fund {Lay Staffj- Pension Builder scheme The DBF participates in the Pension Builder Scheme sertion of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board. which holds the assets of the schemes separately from those of the Employer and the other participating employers. www.bathandwells.org.uk 67

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 CWPF has two sections: l.the Defined Benefits Scheme 2.the Pension Builder Scheme, which has two subsections: . a deferred annuity section known as Pension Builder Classic, and, b. a cash balance section known as Pension Builder 2014. Pension Bullder Scheme Both sections of the Pension Builder Scheme are classed as defined benefit schemes. Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of En8land Pension5 Board from time to time. Discretionary increases rnay also be added, dependin8 on Investment returns and other factors. Penslon Bullder2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, dependin8 on investment returns and other factors. The account, plus any bonuses declared is payable, Un￿d￿ced, from age 65. There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This 15 because it is not possible 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 payable12023.. £207.783. 2022.. £223,018). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing as5vmptions used. At the most recent annual review effective l January 2024. the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997: and a bonus on pensions in payment in respect of p05t April 2006 service 50 that the pension increase was SY. (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the fundlng posltlon over 2023. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 sertion, the valuation revealed a surplus of £5.5m on the ongoing assumptlons used. There Is no requirement for deficlt payments at the current tlme. www.bathandwells.org.uk 68

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the yearended 31 December 2023 The next valuation is due as at 31 December 2022.Calculations for thls are currently under way. The legal structure of the scheme 15 such that if another employer fails, the DBF could become responsible for payin8 a share of that employerfs pension liabilities. {bl The Church Workers, Penslon Fund {Lay Staffj- Defined 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 Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers. Defined Beneflts Scheme The Defined Benefits Scheme I'DBS") section of the Church Workers, Pension Fund provides benefits for lay staff based on final pensionable salaries. For funding purposes, DBS 15 dlvided into sub-pools in respect of each particlpating employer as well as a further sub-pool. known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. 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 Life Risk Pool and all pensions 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 15 not Possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Sertion, is exposed to actuarial risk5 associated with the current and former employees of other entities participating In DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs Icreditedl/charged to the SOFA during the year are contributions payable towards benefits and expenses accrued in that year12023: £22,225 2022: {£164,00011 plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SOFA, glving a total Icreditllcharge of £22,225 for 202312022: £164,000- Credit). If, following an actuarial valuation of the Llfe Risk Pool, there is a surplus or deficit in the pool, fvrther transfers may be made from the Life Risk Pool to the employers, 5ub-pools, or vice versa. The amounts to be transferred land their allocation between the sub-poolsj will be settled by the Church of England Pensions Board on the advice 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 Section was shown to be in deficit by www.bathandwells.org.uk 69

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 £7.7m and £7.7m was notionally transferred from the employers, sub-pools to the Life Risk Sertion. This increased the Employer contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m. The next actuarial valuation is due at 31 December 2022. The calculations for this are under way. Following the 2019 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 year have been agreed for 3.5 years from l April 2021 in respect of the shortfall in the Employer 5ub-pool. Due to the improvements in the projected funding position of the Fund, the Church of England Pensions Board agreed that deficit contributions should cease with effect from 310ecember 2022 for employer5 whose pools were estimated to be materially in surplus. A5 a result, there is no obligation recognised as a liability within the Employer's financial statements from 31 December 2022. A liability has been recognised at earlier dates. The movement in the pmvision is set out below: 2023-£ 2022-£ Balance Sheet liablllty at l January Deficit contribution paid Interest Cost {recognised in SOFA) Remalning change to the balance sheet li£bility",Iiecognised in SOFA) Balance Sheet l.iablllty at 31 December 266,000 1102,000) 3,000 (167,000) Comprises change in agreed deficit recovery plan and chan8e in discount rate between year- ends. Where relevant this liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued usin8 the following assumptions, set by reference to the duration of the deficit recovery payments: December 2023., December 2022,, December 2021 Discount rate NIA:, o.oo%:' 1.30% 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 Ilabllitles. www.bathandwells.org.uk 70

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 (cl The Church of England Funded Penslons Scheme for Clergy The DBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a 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 partlcipating Responsible Body in the scheme pays contribution5 at a common contribution rate applied to pensionable stipends. The scheme is considered to be a multi-employer scheme as described In Section 28 of FRS 102. This Means it is not Possible to attribute the Scheme's assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefit5 and expenses accrued in that year12023: £1,308k, 2022: £1,611kl, plus any figures arising from contributions in respert of the Scheme's deficit Isee below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results belng agreed, the deficit contributions paid were £-12022: £198.IJ)01 A valuation of the Scheme is carried out once every three years. The most recent Scheme Valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m. assessed using the following assumptions An average discount rate of 2.7% p.a., RPI inflation of 3.6% p.a. land pen5i0n increases consistent with this); CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards: Increase in pensionable stipends in line with CPIH; Mortality in accordance with 90% of the $3NA tables, with allowance for improvernents in mortality rates in line with the CM12020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality Improvements of 0.5% pa and an allowance for 2020 dats of 0% li.e. w2020- 0%). Followlng finalisation of the 31 December 2021 valuation, deficit ¢ontributions ceased with effect from l January 2023, since the Scheme was fully funded. www.bathandwells.org.uk 71

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 The deficit recovery contribution5 under the recovery plan in force at each 31 December were as follows.. ,'% of PenS￿nable nds ',7.1% La¥able from Janua.ry.2021 to December 2022 31 December 2021 ', 31 December 2022 131 De￿rnber 2023 An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022. For senior office holders. pensionable stipends are adjusted in the calculations by a multiple. as Set out in the Scheme's rules. Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from l January 2023 onwards, the balance sheet Ilablllty as at 31 December 2023 is nil.The movement in the balance sheet liability over 2022 and over 2023 is Set out in the table below. 2022 Balance sheet118bfjl￿y at J January 338 1198) Interest CQ5t Irecognlsed in SOFAI.................-...------- Rem31nlD8 ¢i￿nIe to the b81aft￿ sheot lIab￿Ry. re(ogni5ed irs SOFAI Balance sfieet Il•bllity at 31 Oecernber 1401 Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends. This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued usin8 the following assumptions. No assumptions are needed for December 2022 and 2023 a5 there are agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 sintr pensionable stipends for the remainderofthe recovery plan were already known. Decemberp 2023 2021 2021 Discount rate NIA N/A 0.0% pa Prlce Inflation N/A N/A NIA Increase to total pnsh)nable payroll NIA NIA 11.5%) pa www.bathandwells.org.uk 72

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 The legal structure of the scheme is such that If another Responsible Body fails, the DBF could become responsible for paying a share of that Responsible Bodws pension liabilities. CWPF (dlP•nsion Ll•bility R•con¢lli4tion - •ll schemes Uni•stri¢t•d Funds Restr. Endo¥w- 2023 2022 Desi¢- irt•d ment G•n•r•l nat•d Funds Funds Total Total £'ooo £'OOO £'OOO £'(#)O É'OOO £'OOO CEFPS Ll•blllty •t l J•nuary Deficit Contributions paid Interest CQ5t 603 {31)01 Remeasurement Galns {3061 Llablllty at 31 December www.bathandwells.org.uk 73

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28a Prlor Year Comparatlve Notes- Ststement of Financial Activitie5 Unrestrletad R•strf¢4 Funds Endow• m•nt 7•t•l Funds Z022 Total Funds 2021 D•sii- Fundi N•1• G•n•rd ntd FUMIS £'ooo £'ooo £'ooo rowj Intame and •ndowm•nts from Parish ContrI￿rtiOnS Other donatlons ChaT5table activitiès Ol￿r actIV￿Q5 Invests))ents Other Incorne 2a 2b 9.338 340 615 797 590 605 9A38 8,866 1,367 646 458 912 692 Isi 917 21 636 797 975 2,135 137 243 1.527 Tot•1 in¢om• •nd •nd9Wrn￿ts 156 1,770 12.941 Exp•nditur• •n R8¢sin8 funds Charftgble actrvities Tot•1 •xp•ndltur• 42 251 262 15,357 15.619 13A15 la.624 254 254 1.168 69 iii 15.157 N•t {•xp•ndhurn) I Inwm• b•l•r• inv•stm•ot E•lns I IloHul Net Ikjssesl I goin5 on inYe5tmEnts N•t (•xp•ndfjturn) / In¢om• {981 1,659 132 12.678 16771 124) 11fj41 {1,4061 (10161 11221 1254] 253 123711 1&1891 6,542 3￿64 Tr4nd•rs b•tw••n funds 15 548 814 593 {1,955) Oth•r r•corThls•d z•lns Aemeaswèmertt gainslllosses) on d•fin•d b•n•fit p•nsion sch•m 28 166 140 11311 mov•m•nt In fvndi 1&802) 339 11,$621 3.733 RECONaLIATION OF FUNDS Tgtal fvnds br•y¢ht hrw•rd Total funds e•Nid forw*d 6.620 1,767 92A26 IIMJ96 101,163 23 103 063 104,896 www.bathandwells.org.uk 74

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28b Prior Year Comparative Notes- Notes 2 to 6 Unrestrkted Funds Re5tri¢ted endowmenl Tot•1 Total Funds Funds Funds F￿d$ 2022 2021 ¢rJ>) £( Genei•l D¥l£n4ted e0(￿ VOD) Parlsh Coiiirfbutl(ffis Parish slwre CLtttnl ye¥s ¥lk)catic ALlJtti¢wl Paymerts Arrears lty w¢v￿ll% D15CWEtlcoary PJri>% Shwt relf sknrtfall 1ncontnlj￿)rts IQ 194 15 IQ194 10.203 15 17 103 1152) 11,280 11.3051 %338 8.866 Trtal Padsh Sh¥t rece¥4t5 rewestrt 91.6% of ￿ J#cF txoKrtles Stslèr PV Pafiel FTI kncoff Otrr 1527 Z014 478 209 118 05 L527 1135 692 www.bathandwells.org.uk 75

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28c Prior Year Comparative Notes- Notes 7 to 8 Unr•strl¢t•d Funds Restr• Éndow. Total Total De51£- l¢ted ment Funds Funds G•noral n•ted Funds Funds 2022 2021 £'OOD É'ooo eooo £'ooo rooo £,￿7 7 C•rts •1 rai￿ni funds Stockbrokerfs fees Value Llnked loans Interest Interest cost & expenses: penslon schemÈs Glebe Land & Clergy Houses lettlng cost5 22 li 42 li li 12 12 io 164 164 17S 251 262 8 Charitable •¢ttviti•s ContrSbutlon to Ar¢hblshops' Coun¢ll Training for Ministry National Chur¢h ResponslbilhSes Grants and provisions Mission Agency pension contributions Retired Clergy Housing (CHARM} & Grants Pooling of ordinand candidates, costs 393 393 393 274 34 18 240 33 16 16 148 144 (491 31 894 393 781 R•s•ur¢lfit Mlnlrtry •nd MIS￿0n Parish Minlstry.. Sttpends and Social Securlty Pension contributions Houslng costs Removal, resettlement and other 8rants oiher expenses 5.418 1.413 1,591 121 78 5,617 5.581 1,41a 1,540 69 1,813 1.664 153 165 165 273 25 8.612 3.996 25 149 69 9.033 9.207 4,673 4.850 121 133 231 544 Support for mlnlstry Fund for Church GrO%￿h 254 775 69 13 706 14.055 Exp•nditur• on Edueatlon Church Schools: Administration 419 419 13.415 254 1.168 69 14.906 15.357 www.bathandwells.org.uk 76

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28d Prior Year Comparative Notes- Notes 9 to 11 Ullrestrkted Funds Ratf- Endow- Total Total Icted ment Funds Funds Funds Funds 2022 2021 £Th)D £,0￿ £'(M)O £'(K General nated £'OOD £ThO 9 Galnsllbssesl on Investment Assets Lknrealised gain5lllossesl after revalLtaiion (') 16581 {241 1164) 11.254) 12,100) 3,323 Rea￿sed$11rdI1b)ssés) tftsrthal 1191 (1521 1171) 3,219 1677} 1241 1164) IIA06) 122711 6.542 I.) IKlw1És £(L2meakn In Rlaoontothe revaluaiion of Gkbe A4rtcultural Land12021- £0.9m). 10 Analysis ol ExpenditllT• Includln¢ Allw•ti•n Of Support Costs Grant A¢tlviil•s ufid•n•k•n funding of Support Dir•ttemal A￿lIt Protessional Fees Diocesèn and Gener31 Synod Expense5 1.213 21 22 17 1.247 1302 1,153 www.bathandwells.org.uk 77

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28e Prior Year Comparatlve Notes- Note 23 At Exp¢n& Reval- At 01101122 In¢om• Itur• Tr•nsf•rs u•tlon 31112122 Yooo rooo £'ooo £'iw rooD 23 Summ•ry 01 Fund Mov•m•nts Unre5trlrted Funds (a} Gener81 {bl Dlocesan Stipends Fund Income 3,503 12,285 {13,444 11801 3,688 12,285 (13,6241 S48 (511) l381 548 1511) 2,381 D•slgn•t•d Fuftds (c) Tangible Fixed Assets Fund (d) L08n Fund (e) Fund for Chvrch Growth (n Pastoral Care & Counselling Scheme (gl Mi551on Development Fund (h} Other Oeslgnated 4.719 {24) 1.314 Isooi 500 47 47 171 190 656 1241 121 30 156 12CQ) 130) 1254) 577 6,620 814 124) 7,312 Tot*1 Unr•rtrirt•d Funds ,303 12,441 (13,878) 1.362 1535) 9,693 www.bathandwells.org.uk 78

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 Oecember 2023 28e Prlor Year Comparative Notes- Note 23 (continued) At £xp•nd- R•v•l- At 0110112Z In¢•m• itur• Tr•nsf•rs uation 3111212Z £'ooo £'ooo È'0￿ £'ooo £'ooo ec 23 Summ•ry Of Fund Movements Icontlnu•dl Restricttd Funds 181 Schools Income Fund Ibl Dlocesan Pastoral Account lel Support of clergy and dependants Idl Retired clergy funds (el Podock Wyld Trust lfj Edginton Trust Igl Zambi3 Link Ihl Modem Slavery link lil Smith Bequest U) DBE Restricted Grants Ikl Abbey House Fund 111 Strategic Development Fund Im) Other Restrlcted Total Restrirt•d Funds 314 56 195 {iioi 1341 171 (961 179 126 593 610 245 22 {211 212 49 78 79 173 227 1161 161 219 io 414 io (431 32 35 (351 32 63 330 13301 (535) (1,1681 36 598 98 1,767 1,078 593 {164) www.bathandwells.org.uk 79

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28e Prior Year Comparatlve Notes- Note 231continued} At Ex￿nd- R•vl- At oV01122 In¢wn¢ Iturn Transfers uatlons 31112122 £'OW £'OOO £'LW £'OOO £'OOO £'OOO 23 Summary of Fund Movements l¢ontinued) Éndowm•nt Funds Exp•nd•bl• endowment {81 Parsonège Houses Fynd (bl Schools Capftal Fund {cl PoAock Wyld Trust (dl Retlred Clergy Funds 4LS40 661 (261 1593) 41,770 661 149 (￿) (411 (S9J 42,882 131 361 320 125) (5931 Permnent End•wm•nt {el Diocesan Stipends Fund Capital lfj Stipends Capltal {fj General C3pital lfj s￿pOrt ol Ordin8Thds (gl Crokat and Cowley Trusts {hl Edslnton Trust (l) Other Permoneni Endowment 47.023 1.492 892 678 {79) 11,304) 19751 45.143 16) {58) {S9) 1,612 (ios) 787 (6) 121) 1381 (81 (85) 11,362) 11.207) 48,332 {111) 11,9551 11.266) 91,264 243 48 186 165 405 372 69 50,115 92A26 1.770 921 Total Endowment Funds All ￿ndS 104A96 15,289 115,157 11,9651 lQ3.063 www.bathandwells.org.uk 80

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 28f Prlor Year Comparatlve Notes- Note 24 Tanz. & Int•ni. Invest- Other Nx•d AsRts m•nts Ass•ts Credlt-IntAund •rs DR I {CA) ¢(M)O £'C¢)O £'OOO fOOO £'QOO £'OOO N¢t Assets 24 Summary 01 As5•ts By Fund Unrestrirt•d G•ner•l Funds 5.501 2.978 16,081 1171 2,381 D￿lE￿I•d Taniible F•xed AssÈts Fund Loan Fvnd Fund For Church Gr0￿h Pastoral Care & Counsellin8 Scheme Misslon Dèvelopment Fund Other Designated Tot•1 D•slzn•t•d Funds R•strlet•d Funds Schools Income Fund Diocesah Pastoral Account Support of Clergy And Dependants Retired Clergy Funds PoAock Wyld Tmst Edginton Trust Zambia Link Modem Slavery link Abbey House Smith Bequest DBE Restficted Grants Other Restrlcted T•t•l Rortrlrtod Funds Endowm•n* Funds Expend•ble Endowm•nt Parson•Be HoL4ses Fund Schools CapTrtal Fund Porlock Wyld Tnjst Relired Clergy Funds P•rm•n¢nt Endowment Diocesan Stipends Fund Capital Stipend5 Capital General Capital Support Of Ordinands Crok•t And Cowley Trusts Edginton Trust Other Pennanent fndowment rot•l Endowm•nt Funds 9,940 13,9341 373 47 127 47 180 172 579 579 934 119 Iz 179 610 60 48 179 610 212 152 33 46 S7 79 124 219 219 63 59 32 98 507 1475 63 322 32 98 41.770 41,770 661 132 320 725 132 1641 12 14,678 31.743 1.306 787 43 158 2SO 327 306 {1.4051 1,612 787 165 372 61 157 135) 56605 35 SIS 652 All Funds 66 669 41,703 6 112 www.bathandwells.org.uk 81

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 29 Funds held a5 Custodian Trustee The DBF acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others. Assets held in this way, which consist of both property and financial assets, are not a8gre8ated in these financial statements a5 the DBF does not control them. The financial assets held in this way. which are shown at valuation, may be summarised asfollows.. 2023 2022 CBF Church of England Invesiment Fund Income shares CBF Church of England Fixed Interest Securilies Fund shares Untt Trust Sha￿$ Direct holdings in UK equlties Direct holdings in UK gllts Other fixed interest Stocks Loan Cash on Deposit Cash at 8ank Total net •ss¢ts held •s eustodlah trustee 9,782 19 174 97 8,985 19 170 99 317 133 2A94 218 298 141 2,059 209 13.036 11,982 www.bathandwells.org.uk 82

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the yeaf ended 31 December 2023 Appendice5 The following accounts and reports do not form part of the audited statutory financial statements and are included for Information only. A Consolidated Financial Trusts B Glossary oftems www.bathandwells.org.uk 83

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 Appendix A Consolidated Flnancial Trusts FlxÈd Assets Equilies Go¥ernmeFrt Securities other Fixed Interest securitles UnltTru5t S￿re$ 9.879 336 174 10,391 317 170 9,573 Current￿sets Deposit Fund Bank Accounts Loan- Hensman 12Y 218 133 1645 2.059 141 Current Liabilitles Creditors Net Cwrenl Asxts 1645 18,036 Net Assets IL982 Total tbPii•l balinces Total accumulated Income bal8n¢es Totsl Funds 11685 351 13.1)3fj 11,632 350 11,982 C•pltsl analy5eda5: 2023 Parishes Closed Sthools hools other Totsl acrumulated income balances 1,28fj 429 4.122 351 36 Signed on behalf ofthe DBF on 19 June 2024 by Rt Revd N M R Bea51ey Trustee Mr l Theodoreson Trustee www.bathandwells.org.uk 84

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements For the year ended 31 December 2023 Financial Trusts as at 31 December 2023 The Financial Trusts comprise 500 Trusts which are required to be held by the DBF as custodian trustee although they are administered by variou5 parishes, schools or other bodies named as beneficiaries in the relevant trust deeds. The investments relating to the trusts are held by the DBF and the income derwed is paid to the beneficiaries. In addition to the trusts listed, the DBF also acts as custodian trustee for land and buildin85. Report of the Accountants We have examined the figures set out on page 84 comprising the Balance Sheet for the Financial Trusts held as custodian trustee by the Bath and Wells Diocesan Board of Finance as at 31 December 2023. Basis of oplnlon The scope of our work was limited to checking whether the figures have been correctly extracted from the amounts recorded in the accounting records. Oplnion In our opinion the information detailed on the attached schedule has been accurately extracted from the accounting records of the Bath and Wells Diocesan Board of Finance as at 31 December 2023. Signed: Sayer Vincent 110 Golden Lane London ECIY OTG www.bathandwells.org.uk 85

The Bath and Wells Diocesan Board of Finance Notes to the Financial Statements Forthe year ended 31 December 2023 Appendix B Glossary ofterms ALM Authorlsed Lay Mlnlster Bath and We115 Multi Academy Trust Central Board of Finan￿ lof the Church of England) BWMAT CBF CCLA Providers of CBF Investment products CEPB Church of England Pensions Board Church Houslng Assistance for Retired Mln15try Chuich Workers, Pension Fund CHARM CWPF DAC Diocesan Advisory Commtttee Diocesan Board of Education DBE DBF Diocesan Board of Finance DBS Defined Benefits Scheme DPA Diocesan Pastoral Account DSF Diocesan Stipends Fund Fund for Church Growth FCG FRS Flnancial Reporting Standard Multl Academy Tnjst MAT MDF Mi55ion Development Fund NPV Net Present Value PB Penslon Bullder pcc Parochial Church Council PCR Past Cases Review RME Resources Ministerial Education SAT stipends Augmentation Tru5t5 Strateglc Development Fund/Strategic Mlnistry Fund statement of Financial Activitte5 SDFISMF SOFA SORP statement of Recommended Practice UTR Unapplled Total Return Voluntary Aidedlvoluntary Controlled VA/vc www.bathandwells.org.uk 86