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....................................
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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.
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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.
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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
general@bathwells.anglican.org
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
t*d
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•nditur*l I Ineom• b•lor•
Inv•rtm*nt Eain• I110ss•$1
Nèt 8alns I11)55esl on in¥estm*nts
Nrt (•xp•nditur*l 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
Tot*1
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¢ SL*ement 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
Oiwbd*rtds 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 <e?rttinu•d)
R•mun•r•tion QI K•y M*ME•m•nt P*rsohMI
Key management persoDTrel are those deemed io be those having authorlty and re5ponslb*lSty. delegated
to them by the tru5tee5. for planning. dirKtinB 3nd controlling the activities of the diocese. During 2023
they were.
Offic• Hold*r
Dloce5an Secretary and
Company Secretary
Jenny Hollingsworth
Head of Finance and
Operatlons
Matthew Pinnock
Director of Education
Edward Grégory
Head of Mlsslon Support
nd Ministry Oeveltsprnent
tlng Head of Mi$5ion
Sup5)ort and Ministry
Oevèla
ent
Revd Charlle Peer Ito 31 January 2023)
Julla Hlll {*rorn l February 20231
Remunération, pension eor)tributlons and expertsès for 514 FfE)12022 - 4 {3.4 FrEI} key m•nagem*nt
rsonrtèl were as lollt>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 Impaim*nt
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
& Prt*perty Inv•rtm•nti Imi¢stm•nts
Llst
T•t•l 2023
Ila Flx•d Ass•ts In¥•stm•nts
At l J••u*ry 2023
Nxldi*ions
Dlsposals
Tr•D5fers / Reclassiflutions
R*v*luation
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
Endowm*At
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
Inv*strnert 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¥•stm*Nt
Tgtsl
Endowm•nt
1111 Stip•nds Autm•rt•tlon Trysts1SAT)
At 1st J•nu•ry Z023
Base value of pemanent eTr*wm•nt
Unapplled Total Retwn
1,213
1.213
131
1,343
131
131
1.213
Mo¥•m•nts In ¢h* r*ptsrtln£ 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 £nd*wiment
(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•wm*nt 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 & Coun5*11ing Scheme
lission Development Fund
Other Deslgnated
Tot￿ Cl*slen*ttd 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 p*nsh)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 n*t*d
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•Ni*d 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 rel*f
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#c<atbn121Y21- B6.9%1
2b Oth•rOoo4Wr4
Allthurclr5 TnEt
Fourrflatkjn (a St Motthk45
RME O￿an￿dS Grnrt
SMF 8rJrt furbJMI¥
Cost of eneryy ¥Rrt
o￿atk)rs.GrnrtS. SFonso￿hlpS & le¢aclES
121
121
126
56
522
105
35
401
78
35
401
78
31
340
403
917
464
558
151
3 ¢h#rtt4bl• Artmtlos
Ststulpry fee5 Jxbd chapièlrxy I￿orne
cO￿e lees and ot￿r
$74
41
574
62
636
596
21
615
zi
646
4 Oth•rkrlvldÈs
Aertal income from cl2r¥y htrjses.
s¢hco15 and the Diocese off￿e
Supp)rtseNk¢s
619
178
797
619
178
797
374
84
458
DiviLlerds ￿¢t￿l•ble
irt¢rest reeewabse
Nrtio￿l lrterest ￿ ne¢ P￿sent vokne
Rerts recei¥at*
349
18
11251
348
590
102
35
243
699
53
512
35
143)
348
975
137
243
912
6 Oth*rlnc(ffle
Gain ￿ d￿pL511 L>F 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•<tly ¥rtl¥ltles
£'ooo £,￿) rouo £'c
251
262
f•t•l
2022
Total
2021
Raising Fund5
charitab￿ AttNities:
Contrlbutions to Ar¢hblshops' Council
Resourclng mlni51ry and mlssion
Edutation
251
393
11,416
365
388
781
894
1.043 1.248 ia,706 14,055
54
419
408
IJ02 15,1$7 1S,619
Unrestricted Funds
Des18-
l¢ted
General nated Funds
£'(K)O £￿00
Restr-
EDdow- Tot81 Total
ment Funds Funds
Fund5
2022 2021
£.￿)0 eooo É'ooo
1213 I￿76
54
48
11 Analysis Of Support Cosis
Central AdministBti
Suppcrt for Sthod5
G4wema￿e.
E>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•v*l-
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
Perm*nent 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-Int*Aund
•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