2022-12-31-accounts

Règistered number. 137029 Charity number. 249505 The Chelmsford Diocesan Board of Finance Annual report and ffinanclal gtat•ments For the year ended 31 December 2022

The Chelmsford Diocesan Board of Flnance Contents Introduttion Legal o*"ecrs Stratewc Report l. Strategic Aims 2. Objectiyes for the year 3. Attivities and athievements in the year 4. Related parties and volunteers 5. Planning for 2022 6. FinaiiLlar reyiew 17 18 19 7. Custodian trustee 8. Principal risk5 and untsrtainties Structure and Governance 23 25 Trustees Re5tx)nsibilities Administrdtive details 30 Independent auditor's report Statement of financial actiwties 33 36 Summary income and expenditure account Balance Sheet 37 38 Statement of cash tlows 39 Note5 to the financial statements 40

The Chelmsford Dlocesan Board of Finan¢¢ Trurtees, Report for the year ended 31 December 2022 Registered number: 137029 INTRODUCTION The Trustees, who are also Directors for the purpose5 of company law, present their annual repor¢ together with the audited financial 5tstements, for the year ended 31 De￿mber 2022. The Direccorsrrrustres are one and the same and in signing as Trustees they are also signing the stratew'c reF)rt sectiuns in their capaciry as Directors. This combined report sats5f￿5 the legal requirements for. a Director5. Report of a charioble company, a Strategic Report under the Companies Act 2006 and a Trustees, Annual Report under &4e Charities A¢￿ 2011. Legal Objects The objects of the Diocese of Chelmsford cover the county of EsseK the unitary authoricies of Southend and ThurrocK the five East London boroughs of Newham. Wakham Fores¢ Barking & Dagenharn. Redbridge. and Haverin& and a few parishes in South Cambridgeshire. The Chelmsford Digcesan Board cf FinanrA 5 1"fDBP'I pr pal obiv 15 to ymots, 3s5iSt and adva4ce *the w￿rk of the Church of England in the Diocese of Chelmsford by aaing as the financial executive of the Chelmsford Diocesan Synod. The CDBF has the following statutory responsibilitie& the managernent of ￿ebe property and investmerts tc generdte income w 5uppor¢ rhe e05t of 5¢ipend5 arising from the Endowment and Glebe Measure 1976., the repair of benefice houses a5 the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1971. the management of investments and the custodianship of asse¢s relating to church schools under the Diocesan Board of Education Measure 1991. the cu$&￿ianshi￿ of permanent endowmentand real properry assets relatingto trusts held by IncumbEnts and Archdeacons and by Parochial Church Councils as Di¢xesan Authority under the Incumbents and ChurchvRrdens (fru5ts) Measure 1964 and the Parochial Church Councils (POV￿￿) Measure 1956. The strategic prioritie$ of the company are established by the Diocesan Synod on the advice of Bishop's Council in communication with Deanery Synods, TrSrochial Church Councils (PCCS). and the Bishop of Chelmsford {in respett of their responsibility for the provision of the cure of souls). To this end. significant time and effort is committed to communication betsyeen aftd with these bodie& as well as with the Church nationally. including discussions on strawc priorities and budgets.

The Chelmsford Diocesan Board of Finance Trustses. Report for the year ended 31 December 2022 Strategic Report l. Strategic Aims The Chelmsford Diottse Board of Finance {CDBF} is responsible for the custody and ma￿ement of diocesan finance5 and the ernploy￿t of CDBF Staff. The CDBF'S purpose is to provide appropriatr personnel and financial resources to assist the Diocesan Synod. Bishop's Council. deaneries and parishes to further the mission and strnwic prioriues in the Di0￿se. Trnvelling Well Together 1022 vrds a year of considerable change and review under rhe leadership of the R¢ Revd Dr Gull Francis-Dehfpni who became Diocesan Bishop in 2021. After a period of listening and discernment the Diocese began to set its fucure direc¢ion of travel - Travelling Well Together. Travelling Well Together recognises that the churches and communitie5 we Serve have been through and remain in a period of significant change and challenge. Challenges that impatt each parish and worshipping community very differently. Travelling Well Together can be articulated as follows: Our Purpose is to love God and to love our neighbour,. to worship faithfulty and empowered by the Holy Spirit witness to the love of God revealed in Jesus Christ as we ser¥e the extraordinarily diverse array of Ioc21 communities in Essex and East London. Our approach 15 to enable and empower parishes and worshipping communities to discern how they are to be God's people in their own very different local contexts and as part of one diocesan fami Underpinning our approach is an invitation to a V+qy of being articulated by shored diocesan volues which might shape how we travel together. support each other and provide mutual accountability. More information about Travelling Well Together and the shared diocesan values can be read at www.chelmsford.an lican.or travellin -well-to ther Moving forward The approach sec out in Travelling Well Together seeks ¢0 build on what has gone before. There is much that Transforming Presence, the previous diocesan strntegy, brought to the life of our Diocese and to different local contrxts. Travelling Well Together recognises that it is now time to buikl on ics foundations by emphasising, at a diocesan level, not what we need to do {that will be discerned and articulated locally) buL guided by shared values. how we are to Ilve. Travelling Well Together is invitational. Parishes, deanerie5 and worshipping communicies will be invited to make use of the approach and consider how the values speak to and support their own local contexL The values will underpln diocesan declsion making, including complex and difficult decisions. It is also hoped that the values will support decision making in more local contexts: in deaneries

The Chelmsford Diocesan Board of Financ• Tru5tees' Report for the year ended 31 December 2022 and parishes. providing a framework for conversations. Enabling and empowering parishes, deaneries and worshipping communities to discern how they are to be God's people in their own very drfferent contexts and as part of one diocesan family, mean5 movins beyond top-down diocesan initiatives and programmes. The approach will require a change in how parishes. deaneries and worshipping communities are sJpported by "he diocesan office and area team5. Iri keepifi8 with the diocesan values, it is the intention to undertake a listening and engagement exercise during 2023 to understand from parishes and worshipping communities how we can develop our approach to providing support and resource5. Thi5 will help to shape staffing and structures so that parishes can be best supported. In 2023 we will cor)tinue a dlocesan conversation around Trdvellin8 Well Together in order to introduce and develop the approach. 2. Objectives for the year - resourcing and supporting parish ministry As the strategic review Tr*VaS underraken there were 3 primary obJ"ectNes for the Chelmsford Diocese Board of Finance for 2022 which rdecced the new direction of travel: l. To reduce the annual deficit $0 that mission and ministry in pari5he5 can be betterresourced in the future. Continued implementation of the Finance Actyon Plan.. identifying new income streams and adopting total return accounting to reduce the deficit and increase funding available to SUPPQrt l¢xal parish ministry b. Deyeloping a new long terni approach to Parish Share in order to encourage greater M￿Ual support between parishes and increase funds to supp)rt local parish ministry 2. TO 5UPPQrt parishes and wor5hippin8 communities in their great variety of local contexts Continuing to support parish miniswy through paying the costs of stipends and housing costs for clergy serving in the Diocese b. Reform of Mini￿rial development and training to support local ordained and lay ministry Supporting parish youth work through our Mustard Seed Team d. Strengthening the projett management of our SDF-funded Church Plants to better enable them to grow and flourish Increasing focus of DI0￿$an services on lool parish support including Safeguardin& Parish finanty communlcations and property f, Supporting parishes that are engaged in social action work including in local communities, on the er)vironmen¢ refugees and racial justice. 3. To improve accountability acn)ss our diocese Setting clear organisational objectives and responsibilities and identifying resourcing and training needs to help achieve them b. Improylng approaches to evaluation across our staff and governance Struc¢u￿5 to drive continual improvement Breaking down silos and encouraging and enabling effectNe collaborntion between deparunents and beTr￿en the diocesan office and parishes. The main objective for the CDBF is to resour￿ diocesan needs as deterniined by Synod and informed by local

The Chelmsford Diocesan Board of Finance Trustees. Report for the year ended 31 December 2022 and national Church institutions. and to discharge its statutory funcuons. Through carrying out these objectives and in promoting the whole mission of the Church (pastoral. evangeliscic. social and ecumenical) the trustees are confident (having had regard to Charity Commission guidance) that CDBF delivers public benefic through community engagemenL resourcing education and supporting those in need E¥)th spiritually and physically. 3. Activities and achievements in the year Introduction As parishes and worshipping communities discern how they are to love God and love their neighbour in their very different local contexts, thi5 settion provides case studies of local ac4$ ievements and atrLivitiei anu the work of the knD8F tv reso&irce and tsuppofL IC•ial missioTr and ministry. Resourcing Mission and Ministry in Parishes and Worshipping Communities I he Tinanciai cnallenges aireaay facea by che tiioce5e ana parishes beTore 202£ were Turtiier compounded by the continued impatt of the COVID 19 pandemic, and new economic challenges including inflation. S%nific2nt progress was made in addressing those challenges as we strive to build solid foundations to resource parish mission and ministry for the future The Finance Ac¢ion ￿an developed in 2020. convnues to be implemery*d. The five =omponents of the plan are: Strengthen reserves b. Increase revenue Reduce c05t5 d. Improve the cash position Capacity to deliver the plan l To support liquidicy, we continued to drdw on support from the ArchE4shop's Councll - includlng a grant of £SWk mllllon to compensate COVID losses. Thls VAS additional to the £2 million grant v gratefully received acros5 2021 & 2022. 3. We adoptrd a Total Re￿rn Accounting Policy which has allowed Endowment fvnds to provide increased 5UPPOrt tOTrKdrds stipend costs compared to the previous policy of utilising income only. See note 27 on page 70. 4. Long tem plan5 to reduce the totsl number of 5tipendiary clergy. which were aCCelerd￿ as a consequence of the COVID-19 pandemic. continued to k implemented. This has been difficult arn painful but has served to bring us to where we are today and we hoFe and prny that it will allow us ts) m¢)ve for￿drd, INingwithin our means and providing a foundation on which to build a flourishing mission and ministry. There are still painful cOnsequen￿S that we must live and there will still be difficult decisions ahead. Where that is the case. parishes wll be more involved in discussion and disternment about how we can best deploy mini5¢ry across the communities we serve. 5. We have only replaced staff who have left when essential and, in some ca54 have recruited part-time replacements. 6. A major consultation involving more than 5QO people from 299 parishes to devdop a long ￿rffi approach to Parish Share vrts compleTrd and a new share Scheme vrns agreed by Di¢xesan Synod.

The Chelmsford Diocesan Board of Finance Trustees, Report for the year ended 31 December 2022 Rdecring the Diocesan Direttion of travel, the new ￿heme puts an emphasis on local discernment and mutual support be￿en pari5he5 in deaneries and across the Diocesan famity. More informat￿￿ aboui the Parish Share Scheme hL 7. TtrAnks to funding from the national Church of ETr8land, recruitment started for two Parish Giving Advisers in late 2022. The tsyo Advisers wi51 work c105ely with parishes to provide guidance and suP￿rt for local giving and stewdrdship. The CDBF Vfds given an Energy Cox5 Grant of £580,000 by the Archbishops, Council and Church Commlssioners to support PCCS and BMOS w¢th increased energy costs during the wintrr of 2021 The purpose of the grant was to efRble churches to contirbue to worship and 5eThe their local communities through a difficult wnter. Case Study I Servin£ local communities- a warm welcome at St Margaret's Barking fPj_. As energy bills soared and temperntures plummtted, many parishe5 and worshipping communities responded by opening up their church buildings to provide a vrdmi welcome to those in their IcKal communities that were struggling to stay vArm. St Margaret's Church Barking 15 known as 'The Abbey Church.. This speaks to its history. as part of the ancient Barking Abbey complex. and their Itxation today in the centre of Abbey Green. Abbeys were centre5 of worship, prayer and hospitslity and The Revd Mark Adam5, Vicar at St Mawdret's Church believes that teing 'The Abbey Church, can also guide them in their ministry today. For many years St Margaret's ha5 had a Community Café running In its Church Centre. which is open to everyone for Iow-c05t lunches. This winter ¢he church is developing new opportunities to seThe their local communiry. The first is by running a 'Warni Welcome Space.. in response to the rising cost of eneryy bills. This will be open from 10am to 3pm three days a week on Tuesdays. Wednesdays and Thursdays. Revd Mark explains: "We have comfortable seating. free tea and coffe< TV. Wi-Fi and space to vlork Most importantly. the heating will be on!11 The church is also r￿ArtIng their 'Rou8h Sleeper5 Breakfast, for the first time since the Fondemic. From 8am to 9am every Tuesday there will be a simple breakfas¢ available in our Church centre to play a small part in meeting the needs of those who do not have anywhere to live. Mark continue5'. "We hope these will be 12ngible ways of showing support for the people of Barkn"ng through a challenging Trmnter."

The Chelmsford Dlocesan Board of Flnancè Trustees. Report for the y*ar ¢nded 31 December 2022 Case study 2 - Wennington Parish Church serves its community after devastatin villa e fire The Revd Elise Peter50n, Vicar of the Parish of Rainham with Wennington reflects on the devdstatlng fires that affected the community of Wenningwn in the Summer of 2022 and the role of the parish church. "On the afternoon 19 July 2022, one of the hottest days on record in the UIC the village of Wennington suddenly made national news as a fire raged through the village. By that evening, we knew that the church building was inra¢ bJt we knew that a significant number of homes had been compleoly destroyed, many others damaged and all 300 Yi113ge residents evacuated. In the days that followed the fire, the church has been a pL4ce of rathering, of laM￿r and of thanksgiving. "The day after the fire, vthen l able to go into the village. alongside the residents, the church was the place the fire brigde briefed the residents before tsknng them to See their homes. or what vras left of them. "The fire had burned completely around the churchyard but hadn't touched the church vrdll& Severdl residents of the village expressed their yatitude that the church still starnling and some even spoke of the 'halo' of unburned ground around it as a that 'someone' vths looking out the church. "But that was hard to celebrate when so many had lost everything. Why Yrfould God ch005e to spare the chvrch, but not the homes of severdl faithfijl church members1 "It's not a question wth an easy answer. but the best answer I can offer is that there needs to be a church in the community of Wennin8con to Serve the people of that village. "The a￿￿1 experience of the fire is not something any of us would choose. offered a unique opportunity to come alongside and to shine the light of Jesus. ennington Parish Church will be here to serve the local community. not just in the early days after the fire. but through its recovery as rebuilding efforts begin in the months and years to come and beyond." Support for clergy and lay ministers The CDBFS most significant investment is in the clergy and lay ministers who lead our parish churches and serve our k)cal communitie5. In 2019 Diocesan Synod passed a motion that all parishe5 would be in Mission and Ministry Units (MMUS) by 2021. While successful MMUS have been formed $ince that time. ic 15 impJrtant to acknowledge thar Synod's motion has not been achievable. A number of factors have Contribu￿ to this outcome. including the very significant disruption of the COVID pandemic. As Y￿ seek to travel Y￿11 together, parishes are encouraged to continue thinknng about and exploring vrdys in which they can work well with one another, whether through deaneries, MMU$, or benefice& to continually reach

The Chelmsford Dioc•ian Board of Financ• Trustees, Report for the year ended 31 December 2022 out across tradttional boundaries and in vrdys that enha￿ our lrfe together. MMU'S remain a valuable expression of partnership and new MMU'S may still be explored and forn)ed co express that local partnership. Ordinatson of 25 new deacons (stipendiary and non-stipendiary) LI￿nsing of 7 new Licensed Lay Ministers (LLMSs}. In 2022 6 new students began LLM training. 62 people graduated from the Course in Christian Studie5 (CCS) in July with 9 people re￿iVIng attendance certificates. In 2022 83 people s¢arced CCS, with most courses being in person, with the option to do some course5 by zoom. The Pastoral Assistants course has been Compl￿lY revised in 2022 and will be launching again in 2023. There are a totsl of 155 Authorised Local Preachers in the Diocese wtch 22 of those being nvNIy authori5&I in 2022 l O people joined the renewed Spiritual Companions course modules in 2022, 6 received their Bishop's ceruficat*. We currently have 22 Spiritual ComFqnions in the DI0￿e, with g total of I I I -JmeYical SFiricual Direttors. Supporting clergy and others who live in Diocesan properties The Diocesan Property Team continued to provide support to our parishes and worshipping communities managing and maintaining our vicarages and other di¢xe5an properties and supporting parishes with land and property issues. The tsam's work included: 733 Helpdesk enquiries handled 7 owned properties prepared and 4 lettings negotiata4 for curates 42 vacancy W￿rkS projects delNered for newly appointed clergy 9 proFerties prepared for let on priydte market 26 parishes provided with custodian supporc for laThJ and property related issues and nsacthons. Landlord ps safety contrydct operating suceessfully 46 electrical tests and upgrdde5 completed 74 periodic inspections were completed and 64 propertie5 had planned ex￿rnal maintrnan completed.. 8 house sales eompleted generating over £3.6M of caprftal £736,0C￿j of revenue generated through rental of 50+ properries during intrrregnums 2 new refugee fanNlies housed 5 dosed churches managed Caretaking of St Marks College- Audley End pending sale Support for childreni young people and families ministry The Diocesan Parish Share consulcation identified mission and ministry with young peopie as a priority for parishes across our DI0￿Se. Those who lead youth and children's work in parishes continued to be supported in 2022 by our Mustard Seed Team.. There were staffing changes a5 the tram said goodbye w Tara Russell in January and welcomed Dot Salmon back part-time from materniry leave in the summer. Two events returned in a face to face format this year- the B￿d￿￿11 Schools, Pilgrimage team hosted over 200 primary aged children at St Peterfs Chapel at Bradwellwon-Se2 for a day of activities locussing on the theme of pilgrimage.

The Chelmsford Diocesan Board of Finan Trustees, Report for the year ended 31 December 2022 The team also hosted the Leaders. Lounge at the SOLID festival in July. SOLID is a vfftkend gathering for 8-18 years with opportunity for outdoor activities, worship and a time for youth group51churches to spend some time together. There have been three very successful in person retreats offered by the in 2022 and the pattern of Len¢ summer and Advent retreats, one in each Episcopal Area, is now established. Manna tTrining continues but with changes in the Salvation Army team. it is currently just the Mustard Seed Team leading aThl frdcilitstin& although there are conversations with other denominations arouTh partnership. Living way and Grow￿n8 Young Leaders continue and Youth Synod has Eeen reviewed and a new model has been devdoped and agreed by the Bishop's Leadership Team. Early years support continues. Ann Sharp in the Mustard Seed Team ha5 been working with schools with the new Early Years Foundaut)n Stage framework and providing general suFyort for settings that are struggling with children'5 mental wellbeing following the COVID 19 pandemic. In 2022 the team established c105er working with the diocese's Stratewc Development Funding (SDF) projects and have regular meetings wth Diotesan Head d SDF Projects Dawn Weddell to update and support the work of both ￿M5. Case Study 3 Youn eople sleep out to su ort Ukraine u¥ •• A group of young people from the 'Young Saints, youth group in Great Chestsrford were sponsored to sI￿P in their church overnight to rdise money for the Red Cross appeal, which is supporting refugees from Ukraine. The night of the sleepout coincided with temperatures dropping to - I degree! The year 6 to year 9 students rnised ¢)ver £500. "The group have just coMple￿d the Christian Youth Alpha course and wrdnted to put their laith into acrion and they have been determined to do something for the people of Ukraine." said youth group leader Caroline Jeevftn. Reverend Alex Jeewrdn added: "I'm so PrC￿ of all those who took F4rt in the sponsored sleep OUL Our 'Young Saints, group have a re21 heart for helping others in need in this crisi&" All Saints Church in Great Che5terford also h05ted the 'Chesterfords for Ukraine. fundraising event in April. The event rnised £3.000 for the Red Cross and featured sts115, including a chocolate tombola, cream teas, cake5 from the local Wl. a toy raffle run by the scouts and live music. The church recentty ran a silent auction. Lots available to bid on included a week in a holiday home and dinner the vicar, amongst m￿Y other items. The awrion raised over {21.0￿ for Red Cross appeal to support those from Ukraine.

The Chelrnsford Diocesan Board of Filb￿¢0 Trustees. Report for the year ended 31 December 2022 Schools Our 139 Church Schools are integral to the life of our Diocese. Our Di¢xesan Education Team continued to SUPPOrt school leaders in 2022. A full annual report of the work of the Diocesan Board of Education vrd5 presented to Diocesan Synod on Saturday 22rd October 2022. The DBE continues to focus on t¢5 itiury to Promo￿ education. The Diocesan Boafti oi Education (DBEI Scheme 2021 came into operauon on 17June 2022 as Certified by the Archbishop's Council. The DBE and Education Team member5 have been focusing on the core areas of Leadership, Visibility and Repair through0￿ the year. CDET {Chelmsford Diocese Educational Trus¢) is the incorporated company through which the DBE manages its relationship with our diocesan mU￿-AcadeMY Trust (MAT), The Vine Schools TrusL and our other MAT partners. Governance 5UPPOrt for CDET and its direttors is integrated into the work of our education tram and DB& and scatucory filing requirements have been meL The Education Team consists of several full and part time staff operating face to face with schools or within the operdtional side of che deparunent. In September 2022 Julie Sarti joined the team to provide additional adviser capacity for 2.5 days a week during interim arrangements. Over 91% of our schoo15 signed up to our Partnership Agreement offer in 2021122. This strengthens our relationship and ensu￿$ our School Advisers are making regutar contstt and offering additional supporL Both Of5¢ed & SIAMS InsFection5 y￿re subject to another disrupted year during 2021-22, with Covid-19 causing delays or ceasing inspec¢ions entirely at different point5. Despite this Ofsted undertook 22 Section 8 & Section 5 Inspections across the Diocese. Of those schools inspetted 77% achieved or mainr2ined their good judgement and 9% achieved or mainrained their outstanding judgement. In 2021122 the School Condityon Allocation grant of £1.59Sm was received from the Deparunent for Education. A total of 20 projects have been carried including srx school roofing proiecr& three of which were totally renewed. We have embarked on a pilot trial for srx schools with a product called Hydromx. This fluid produtt 11 be installed in existlng heating systems to redu￿ gas usage. The liquid albws the systrm to get up to ternperdture quicker and retain heat for longer than a standard watrr heating syxem. We expett to see a 25-30% reducrion in energy usage, therefore sawng h)th costs and reducing the ￿rbon footprint of the sth¢xJls. Launched in November 2021, the Global Majority Edu(a¢ion Asstxiation (GMEA), thaired by Aleishia Lewis IDBE Member and Headteacher of St Mary's Prittlewell), seeks to establish a coalition of global majority wchers and education leaders. The report of the Archbishop's Anti-Racism Taskforo From Lament to Action. conunues to inform the work of the DBE as it seeks to respond to and implemenc the acrions identified. 10

Th• Ch•lmsford Dioc•san Board of Financ• Trustees, Report for the year ended 31 December 2022 Case Study 4 Witnessin to God's Love at William Ford School, D2 enham Williaim Ford C of E Junior School in DagenhaFn works hard to ensure all its pupils learn about the gospel and encounter God not onty through times of collective worship. but through ￿5 curriojlum and special themed days. One such day 15 their annual 'Spirituality Day. when the school dedicates time to focus on some of the bigger. more challenging questions. During thi5 year's 'Spiritualiry Day, pupi15 thought aLK)ut how to communicate with God and explored a driety of ways they could put this into practice by visiting drfferent prayer stations. Each prayer station included a fun attiviry to help the children engage in prayer and reflection. David Huntingford, Headteather at William Ford School explained: "Our 'Spirituality Tray, is not about teachers providing the answers buc encouraging our children to think deeply and critically whilst considering the biblical perspective on issues. We began with a time of collettive worship: considering what prnyer is and vthy we should prdy" Support for New Christian Communities In a Diocese of significant demogrnphic change. with areas of population growth and new housing developments, SLtpwrting parishes to grow, and develop new Christian communtties has been a key priority. 2022 saw. Continued strong governance and erdluation ofour SDF church plants in partnership the Strategic Development Unit of the Church of England. Continued exploration of options for the development of the School for Church Planting. Tracking of lessons learned to feed back into future projects and wider diocesan strategy for future projects. This has resultyj in the development of new tools to aid future bid writing and the development of a learning communi¢y. Continued exploration of what sustxinability looks like for New Christian Communities t*)st SDF fvnding. Tithter budget trncking, which h&s alh)wed us to identify underspends to target specific areas Wbthin a project that need5 additional support to continue their missional work Two projects prematurely close (Witham & Church E20) as they were considered not viable when their respettive project leads left post. Wieham's remaining fvnding has been repurp)sed through a change management wocess to continue vlork iri Halstead. Church E20 funding Options are being considered by the Area TearTh

Th• Ch•lmsftsrd Diocesan Board of Finance Trustees. Report for the year ended 31 December 2022 Case Study 5 Soul Food - Gatew3 Project Halstead Sou£ J88d The Gatevrdy Proiect is a Christian community in Halstead. grown out of St Andrews Church, Halstead. The project has been running a food outreach programme in their local ct)mmunity since June 2021. S(￿1 Food provide5 a delicious free two course take a￿aY service and it 15 available weekly to anyone who needs it. Since the projett's launch is has served over 2,000 meals. The idea for Soul Food developed out of a dts)r-step conversation between the Revd Jo Parrot the cura￿ at St Andrew'5 and Rachael Simp50n, the Communicy Outreach Worker abouc the impact that the Lovid pandemic was having locally, and the church wanted to help meet the needs of the community. Soul Food is 5UPPOrted by a team of volunteers who give their time and culinary skills to prepare meals for the l¢xal community and is led by Rachael. Last year. the team srarted an albtment and now regularly uses the produce from the allotment in the takeaway meals Rachael explains more about the Soul Food projecc 'We set up the Soul Food takeavAy service ro help people in our local community who needed support with mea15 after the first lockdown. If the last couple of years has taught us anythin& it's the importance of communty, Jesus VAS big in cornmuniry and sharing life together. Soul Food 15 open to all in the local area. and everyone is welcome. "Hosp¢¢ality is key to our ministry and is at the centre of what do. We hope that Soul Food is more than 2 takeaway and that it helps build community. From November this year. we have widened our setvices to offer sit down meals and hope this will help people connec¢ and build fiiendships." Social justice and environmental For many in our parishes and worshipping communitie5 social justice and caring for God's creation are cents31 to their dIs￿rned mission and ministry. Contlnulng to support this mission and ministry a key priority in 2022: Soaring energy prices, compounded the impxct that the coSt￿f-r1vIng crisis was already having on communities across Essex and East London. Our parishes and worshipping communities continued ¢0 care for the most vulnerable in many drfferent ways including through food bank& night shelter5 and by offwing vr4rm SF4￿ for people to meet. This IM￿rtant iyork wntinued wh)ilst marby parishes and mini5ter5 were strugglin8 With rising costs themselves. Th7¢nb ro funding from the Archbishop's Council and the Church Commissioners, Chelmsford Diocese was able to distribute Energy Costs Grants to parishes and Bishop's Mission Orders and a Ministry Hardship Fund to chose in stipendiary. house for duty and employed lay ministry role5, totalling £684.CKIO by February 2023. When the vrdr in Uk17ine srarted in February 2021 many Feople in our churches and worshipping communities sought SUPF<Jrt from Chelrnsford Diocese to host refugee5 in their homes and communine5. Working in partnership with Citizen5 UK, the Diocese of Chelmsford set up Communities for Ukrainians to support hosting through the Government's Homes for Ukrninians 12

Th• Ch•lmsford Diocesan Board of FinancÈ Tntstees. Report for the year ended 31 Decembèr 2022 scheme. Around 50 people V￿re hosted during 2022 with many parishes provtding additional support tn Ukrainian refugees in their communities. For further infonnation, visit htt helmsfor about- our-faith-in-action refu ee-minist communities- for-ukrainians. At the same time the Diocese continued to support parishes hoxing refugees from Afghanistan and Syria. I he Diocesan Environmenta5 Group and Diocesan Office teams continved to support parishes and schools in achieving the Church of England General Synod target of Carbon Net Zero by 2030. Support vrds a150 provided for churches working towards the A R¢xha Eco Church avftrds. Implementstion beKdn of the Raaal Justice Task and Finish Group report that VWd5 approved by the November 2021 meeting of the Chelmsford Diocesan Synod. The Revd Sharon Qui1￿r was appointed to the part time role of Diocesan Racial Justice OffI￿r and is overseeing the implementation of che report's action& With the Bishop of Chelmsford also leading the Church of En￿and response to the national housing crisis as Lead Bishop for Hou5in& Chelmsford Diocese also continues to explore Yays through which y￿ ran support parishes in addressing the housing crisis in their local communities and by utilising our public Vol￿ and resources. Case Stud 6 Carin for God's Creation - St ohn's Moulsham J ¥•"J' St John the Evanselist Church, Moulsham achieved a Gold Eco Church award in 2022. becoming the 25th church in England and Wales (17th Anglican church) to receive a gold aYt&rd and the first parish church in the DI0￿$e of Chelmsford. The award. given by the Christian conseryation charity A Rocha UK, rdects the commitment made by St John's to ￿alk in step with nature and put creation care at the heart of its ministry aThJ mission. Priest in Charge of St John's. Revd Gemma Fraser said. l am so proud of our communtty and the Prog￿$$ we haye made together. The Eco Church journey has been transformational for St John's: it's enabled us to reconnett with our vrsion to love God and His world. Over the pax couple of years, we have built a much deeper theolowcal understanding of our relationship with the natural world and throu￿ that we have rediscovered God's call to mission and service. When you work in harmony with God, blessings liow, and St John's has grown and flourishèj, despitr the challenge5 of the last years. "We starred $0 simpty with recycling, using ec￿fr1endty materials and the remoydl of single use woducts. Now creation care permeates every aspett of our life together,. regular services with teaching on enwronmental and ethirdl issue5. Care of the building and financial decisions. our children's work. corrmunity outreach. management of the churchyard and plans for the futu￿ An integrated approach has been key to our success" Stjohn's Eco Group chair. Linda Percival. added.. "It has been an exciting journey. We have particularly enjoyed seein8 more of our local communiry using the churchyard for Wild Worship, learning aEout creation. as W￿11 as opening our eco café. JubiLatw and running events such as our autumn fayre where our local allotment society and Cfdft workers realty add a to the day." 13

The Chelmsford Diocesan Board of Finance Trustees, Report for the year ended 31 December 2022 Case Study 7 Communities for Ukrainians - Krys a's Story Krystyna is a 26-year-old Ukrainiirn who has be￿ hosted since September 2022 by a couple living rEar Frinton who are mernbers of the church and "hosting hub" at Kirby Le Soken. She has kindty gNen us perniis5ion to Trll her xory. "When Guy and Sandi heard of the plight of the Ukrainian people in February. they were moved co help. When they heard that the Diocese had launched "Communityes for Ukrainians" they opened their home: they had a Zoom call wrth me, and with the Reyd Andy Griffths. the scheme coordinator, and a n￿￿th later l arrived. together with my 13-month-old son Denys. There was a lot o, paFerwork involved. koth before we ame and after Y￿ arrived. It doiiiinated rhe first 6 week5 of our stay. But once we were through all that we all felt we had made itl I spoke some English and from the very start we began a mutual conversation of care and concern and love and blessings. Guy and Sandi have made an effort to leirn some Ukrainian. and my English has greatly improved. "We have embrnced the Nthole experience and live as a family. sharing meals. space and time - including each other in our lives. We Share the cooking. Guy and Sandi say I'm a great cool and seem to like Ukrdinian food. "Denys is now walking and underst2nds English as well as Ukrainian. He's a happy child, loved ty the whole htsjsehold. His favourite place is the beach which is a few minutes, walk from our home. We go to the local mother and toddler groups in the area too. "Of course, the war is an ever-present concern and Y￿rry. It lives wich us daity, and we have had very bad days - like the day Kiev was bombed and water and electric supplies were cut off for my mother- but good days too, like when Kherson vrds liberated." Guy and Sandi commen¢:"I would say from our experience it has been a great adventure and in giving up our home. personal space and roucine we have gained a new famity and an edurdtion in all things Ukrainian. It says a great deal ab)Lrt Krystyna as a person that our experien￿ has been so P)Siti￿ We thank the Lord for gwving us this opportunicy to help them in this wrdy. And we are grateful to the church family for their prnyers." Safeguarding The Diocese of Chelmsford is committed, as of the Christian Church Itving in the spirit of the Gospel. to protect and c2re for everyone and we aim to be a beacon of best prnctice in safeguarding. Working to supp)rt those who lead safeguarding in our parishes and worshipping communities. our Safeguarding TeanK 14

The Chelmsford Diocesan Board of Flnance Trustees. Report for the year ended 31 December 2022 Ensure our volunteers. clergy, advisers and lay people achieve the standards laid down in the Safeguarding Policies of the Church of England. Work with indlvlduals who have criminal convictions. or where other safeguarding risks are identified. to ensure that they. and all members of the church community are safeguarded. Hold to account all persons responsible for the safety and wellbeing of children and vulnerable. adults in the Diocese. At the end of 2022. the Diocesan Safeguarding Team (DST) had 81 open case5 acro$5 our 474 parishes. During that year,17 new cases were opened. and 16 cases were closed. 49% of the open cases have safeguarding agreements due to the worshipper p05ing a potentiai risk and, therefore, requiring safeguarding risk assessments to k undertaken at the Parish. The DST have a duty system vthereby parishes can contatt the team on a dedicated telephone nUM￿r for advice and consultation of a safeguarding nature. In 2022 the re￿Ived 304 duty L711s, which is 87 more calls than 2021. 50% of the calls y￿re from Clergy. E_learning trnining 1$ ayailable tor anyone in the Diocese ana in 2022 over 2000 people completed the Basic Awareness Course and IS￿ completed the Foundation Course. 256 people completed the Safer Recruitment and People Management e-learning course. The National Safeguarding Team Launched 2 new e-learning course5 in 2021687 people completed the mandatory Domestic Abuse course and 9 people completed the optional Modern Slavery Course. 96 Virtual trnining sessions were or￿niSed for 2022. but 4 had to be cancelled due to a lick of attendee& This meant that wtthin those 92 sessions 909 individuals completed training around the 3 different modules offered. A% well 3$ the 276 hours of training time for the DST. we also had ¢0 review 909 assignments. as per the National Safeguarding Team's policy. before completion certrficates can be issued. Case Study 8 Safeguarding the young and vulnerable - St Mary the Virgin Har¥Yich In Sep￿mber, Bishop Gull led a service at Chelmsford Cathedrnl of thanks&"ving, prayer and commitment for all those invow in the work of safeguarding in Chelmsford Diocese. The service was attended by Parish Safeguarding Officers. those involved in safeguarding across our diocese and those who vrdntsj to show their support and give thanks for this important area of our shared life. Susan Crydne, Churchwarden and Safeguarding lead for the parish of Sr Mary the VSrgln. Ardleigh in the Harwich deanery, attended the service and commented: "How encouragng to have the commitment to safeguarding and the hard work that it involve5 by so many people in the parishes acknowledged and blessed. It a great encouragement w those vtho often feel the uphill 5tru8gle. 'We were encouraged by a visit from Archdeacon Ruth to bring about 'a 15

The Chelmsford Diocesan Board of Financ• Trurte￿, Report for the year ended 31 December 2022 change in culwre, in our churches. This has helped us to push forvrdrd to build a church where every member understands that it is all our responsibility and to equip each member to feel confident to share any concerns they may have in a confidential and well understood process." Communications Tle Dboce5&n Confflunication5 Team COiitinL¢ed to provide suppxjrt to prishes and ￿K￿shiPping communits'es in 2022 through: One to one support for parishe5 and church leaders in handling challenging si¢uauons involving media or social media. Providing guidance, training and support to help parishes use effettlve communicatlons, including digital communications in their mi55i0n and ministry. Sharing information, news and resources with parishes through Diocesan Communications including: o The weekly newsletter I ne View The quar*rly prayer diary We Pray Weekly Video sermons The Di¢xesan V￿lte Social media channels Facilitating engagement and participation in consultations and diocesan events including the Parish Share Con5ultstion, Diocesan services and gatherings. Case study 9 The Studio at Lifestreams St Cedd's Ik The StLKlio projett is based at Salnt Cedd's, one of the Lifestreams Churche5 in Westcliff-on-sea. It Yrns e5rablished during the latter part of the pandemic and aims to connett local people. It's advertised through the local NextDoor app - an app which helps to connecc neighbours and build community- using the s¢rapline 'connett onlin&.meet in person" ¢0 encourage people to venture out in a safe enyironmert to share refreshments or take part in ac¢ivities in and around the church. The Revd Colin Baldwir). Priest-in-charge at Saint Cedd'5 explains more about the projert: "The Swdio bridges a be￿een television programming and the internet, making It real for people picking up on local. national and global issues. 16

The Chelmsford Diocesan Board of Finance Trustee< Report for the year ended 31 December 2022 "We haye tackled various subjects and interviewed various people including someone living with a stroke. another wth terminal Can￿r, parents with children with autism, local Councillors and a Rabbi. "We have load5 of ideas and plan for a 'Loose Women. type session based on the ITV show. We don't quite know where God will lead us but we are extited to see the connections being made." The Studio is usually presentrd live on Thursdays at 1.'30pm. broadcast on Facebook live and YouTube - search for 'LifeStreamsUK' on these platiorms. The team consists or new part-time ccffimunity v￿rker, Lil D￿lt85 Lead, Joe backed up by volunteer Dave and the clergy tearn at Lifestream5. 4. Related parties and volunteers Other relatod parties include: The Archbishops Council to which the CDBF pays a donation based on an amrtionfftht system for funding national trnining of ordinands and the attiyities of the Various nauonal boards and councils, as well as Genernl Synod. The Church Commissioners vA)ich acts on behalfof clergy with HM Revenue and Customs. The CDBF pays for clergy stipends through the Church Commissioner& The CDBF is in receipt of grant funding from the Church Commissioners (via the Archbishops, Council)for ministry support and special projec¢s e.g. the Turnaround and Church Planting projects. The Church of England Pensions Board. to which the CDBF pays retirement benefit contributions for 5tipendiary clergy and employees. It a150 offers scheme5 ¢0 provide housing for clergy in retiremenL The Vine Schools Trusts, and the Chelmsford Diocesan Educational Trus¢ which while serdrate and independent of the CDBF, have certain responsibilitie5 in relation to church schools in the diocese and work wrth the DBE. The Guy Harlings Trusc which provides office facilities free of charge under licence to the CDBF and the Cathedral tkan and Chapter and makes grnnts towards the upkeep of the pranises. The PCCS within the diocese. St Mellitus College Trus( a Theolo8ial Education Institution which receives financial support from the CDBF and to which the CDBF pays fees for training of ordinands. Transaction5 With the main categories of related parties are identified in appropriats throughout the financial statements and in particular no 24 to the financial statement& Volunteers CDBF is dependent on the huge number of people involved in church activities Ex)th locally and at diocesan l. The number of actNe volunteers (or volunteer hours) given to the mission and ministry of the Church FS an indicator of the health of a Church. The service provided to a community through church Volun￿erIng a150 ha5 a 5ignifKant impatt on people's relationship to the Church particulaAy at times ol crisis. Within this contert the CDBF gready Trrdlue5 the considerdble time given by committee members and other volunTrers across the dI￿eSe in pursurc ofthe mission ofthe CDBF. We particularly thank them for the additional support they have &ven during this challenging year. There are many people vtho are unpaid but who hold official posicions within the lrfe of the church that carry autP)risation. licence. or Permission to Officiate. This includes Churchvdrdens, who seNe each local parish church. loolly authorised preachers. pastoral carers, evangelists. and funernl ministers. plus Licensed Lay Minitters and Readers and our self-SUPFortyng ordained miniS￿r$. 17

The Chelmsford Diocewi Bowd of Finance Trustees, Report for the year ended 31 December 2022 5. Planning for 2023 As the CDBF approached 2023, the significant changes and development work that had been sttrted in 2021 and 2022 cononued. The period of listening and discernment that began when Bishop Gull became Diocesan Bishop in 2021 was reaching a w)int where a new direction of travel for the Diocese could be articulated through the documenL Travellin Well To ether which was published in February 2023. The new rish share scheme that had been developed following a major diocesan consultstion was being rolled out The Diocese continued to address the signfftcant financial challenges that had teen compounded by the COVID 19 pandemic and subsequent economic challenges. These changes and this work sha￿1 the approach to planning for 2023: Trnvelling Well Together The approach set out in T r and in particular the move beyond top dovm inityauves and tOV4ards a focus on parishes and YK)rshipping communities discerning their own priorities for mission and mlnistry appropriate to their own context, requires a different approach to supporEing parishes. Plan5 V￿re put in place to undertake a listening and engagement exercise in 2023 to understand from parishes and worshipping communities how they can be best supported. The listrning exercise will be@n in Autumn 2023 and continue into 2024. The outcomes of the listening exercise are likely to shape plans for sraffing and structures in the future. The publicatlon of Trdvelling Well Together is not an end point and discussions and conversations will continue to shape diocesan direction of travel. Resourclng mlsslon and mlnlstry In parlshes and worshipping communltles At the same time, building a sustainable financial base for mission and ministry in our parishes and worshipping communities remains a top priority and 2023 which sees the roll out of the new parish share scheme. The aim of the new share scheme is to increase mutual support between parishes and to redu￿ the overnll shorrfall which has had a significant impact on the capacity of the CDBF ¢0 fvnd local parish ministry. Ocher financial planning was undertaken to supwt the implementation of the Finance Attion plan. launc in 2020, to.. Str￿hen reserves b. Increase revenue Reduce costs d. Improve the cash position Capacity to deliver the plan Plans focused on.. Growing income from parish share by continuing to explain its e5sentnl purpose in funding and supporting local parish ministry and by devolving agency co deaneries. Continuing to identify additional funding streams. Scrutini5ing our property porrfolio to identify opportunities trj improve our financial position (whilst continuing to prioritise harnessing our prO￿rrieS for mission and minisrry). Continuing to identfy opwtunities to reduce expenditure. 18

The Cholmrford Diocesan Board of Finance Trustees, Report for the year ended 31 December 2022 Continuing to utilise Total Rewrn Accounting to increase the amount of investment return that can be withdrawm from the StiFends Endowment Fund. Thi5 has allowed Endowment funds to provide increased support towards stipend costs than under the previous policy of uiilising income only. See notr 26 on page 68. As we approached 2023, there V￿re also a number of significant events and attivities that shaped planning. During 2023: The Diocese will continue to implement the recommendatlons from the Safeguarding Past Cases Review 2 whieh were published in October 2022. The Diocese wll continue to implement the proposals of the R The Diocese wll continue to implement the road map co £￿ts￿n NgLZLo by 2030 as agreed by the Church of England Generdl Synod. The General Synod vote on che House of Bishops. response to Living in Love and Faith took place in Fetr￿Uary ?.0?3 and a5 aDticipated, this has continued to te a painful process for many people in our church communities. The ongoing cornmitment of Bishop Gull and the &'shop's Leadership Team is to promote a vny of travelling well together. despite the differentrs in what ￿￿ believe and despite the inevitable pain those differences cause. 6. Financial review Financial Performance The CDBF recorded a surplus of £1.492k for the year on its general funds before gains on rwaluation of assets. The improved performance mainly arose because of che adoption of Total Return Accoumng (stt note 26 on page 68) which enabled a transfer of £3.1 m from endowment to unrestricted fiJnd5 to 5UPPOrt the costs of stipendiary ministry in parishes. Further improvements were due to better use of restricted income and funds to pay stypendiary minlstry costs. and a grant of £0.5m received from the Arthbishop's Council to compensate COVID1055e5. Parish Shar& the money given by parishes to the CD8F to fvnd the mI￿10n and ministry of the dic<ese, is the main incoming resource for the CDBF providing (wo third5 of its incom& At £2.2m (2021: £2.6m) the net parish share shortfall vrds 51i8htly Ipwer than the previou5 year. In cash terms £13.7m (2021: £13.5m) has been received in Parish Share. an increase of 0.7%. The percentage of requested Share colletted rose slightly trj 86.1 %12021. 84.2%). At £2.2m12021: £2.6m) the net parish share shortfall ¥WdS lower than rhe preylous year but these results are dosely relatrd to the lower amount inicially requested. £16.1 m (2021: £16.4m). The CDBF has met all its financial obligations to cononue resourcing the diocese as required. including the provision. development and support of minisrry. the provision and maintenance of houses for the clergy. National Church responsibilities and enriching and facilitating many other asF*Cts of church life throughout Chelmsford Diocese. Income across all fund& before other recognised fdins and losse5 totslled £23.8m {2021 £24.8m) and expenditure amounted to £24.1 m {2021.. £22.9m}. The Ststement of Financial AttiYitie5 (SOFA) for the year Shov￿ a net deficit of £0.4m (2021: surplus of £2m) before net gains and losses on the rerdluation and sale of investments and the reyaluation of fixed assets. These net fdins totalled £19.9m (2021.. £29.2m} and after these adjustments the net increase in all funds amounted to £19.Sm Q021.. £31.2m). Gains {or losses) are dependent on market volatilicy and the majority of the ￿1n$. of £17.7m. (2021: £25.4m) are ascribed to Endo¥vment Funds and are therefore not available to spend. The overnll financial result for 2022 is encourd¥wng, however some of the improvements in performance, such 19

Th• Chtlmsford Diocesan Board of Finance Tru5tee5' Report for the year ended 31 December 2022 as the Archbi5hop'5 Council COVID losses gran( are not expected to repeat in future years and we have to recognise tha¢ investment returns may not be as stron& Nee cash outhow of £5.2m {2021.' inflow £0.6m} arose as £2.9m net cash wa5 used in operaung acciviries and net £1.4m for inYestin8 actiYiue5. CDBF continued to benefit from financial control in 2022. Significant Property Transactions The Asset Investment and Management Policy adopted by the Truxees governs the management ofoperational and investment property. This Policy was updxtrd in 2017 and approyed in its updated form by the Trustees. The vast majority of the residential PrO￿ry portfolio is held for operational purposes. It is managed to achieve required quality Standard5 at a con5isTrnt and efficient average annual cost of ov¢mership. Significant operdtional property transaction5 in the year comprised.. Purchasa of one ?rope.y for houslng srlpendiary trtlesiastical office holder S21e of eight propercies surplus to operntional requirements. Sale of one glebe land holdin& Glebe land and properry is held for invesunenc purposes. The overall strategy is to retain a land holding, to seek to leverage Yalue through long ttrm developmen¢ to dispose of less lucrdtive holding5 and direct exposure to commercial propery. During the year the CDBF agreed the sale of one land holding providing £0.03m of addirional investment fijnds on completion. The usual cycle of rent review5 and lease renewals on glebe land continued a5 advised by the CDBPS land agents. The Diocesan Stipends Capit21 Fund is available for providing and improwng benefice and ￿ebe property and when invested provides income and capital grovrth for clergy Stipends under the Total Return Accounting Policy {see note 26). Residential propertie5 are valued on the basis of a ceffified annual Yaluation. Balance Sheet Position The Trustees consider that the ￿lantt sheet together with details in note 18 show broadly that the restrictrd and endowment funds are held in an appropriate of inYe5tment and current assets gNen the purposes for which the funds are held. While the net assets at the balance sheet date totalled £375.9m (2021: £356.5m) it must be remembered that ineluded in this totsl are properties, mostly in use as dergy housin& whose value amounted to £307.4m (2021: £288.8m). Much of the remainder of the assets shown in the balance sheet are held in restricted funds. and cannot necessarily be used for the genernl purF()ses of the CDBF. Reserves Policy Havlng consldered flnancial risk, Ilquldity requlremert and the dming of cashflows throughout the year. and based on the Charity Commi55ion recommendatior4 the Trustees consider that an appropriate level of free genernl reserves is three months gross general fund expenditur4 currently £5m. This policy was las¢ reviewed and a￿eed by the TrL￿teeS in May 2020. The Finance Executive is charged with oversight over the reserves policy and with improving the free general reserves to meet the increased policy requiremenL After transfers, free general reserves at the year-end were in surplus by £6.2m {2021.' surplus £4.6m) being the value of the General Fund exduding fixed assets. The Trustees previously recorded that free general reserves would fall rf parish share shortfall did not materially improve. The adoption of a Total Return Accounting Policy, together with the other circumstan￿5 described in the Financial Performance Section abow has 5i8nificantly improyed the level of free general reserves. Although the balance of free genernl resernes tt year end is above the three months general fund operating expenditure tar￿ It is expetted that resefft5 will be required co fund oper2tir)g deficits in future year5. and as a result the trustees consider th the CDBF has sufficient resources to meet its day to day operational needs. 20

The Chelmsford Diocesan B¢)ard of Finance Trustees, Report for the year ended 31 December 2022 Deslgnated funds The Tru￿e$ may designate additional unrettricted reserves to be retained for an agreed purpose vthere thi5 Is considered to be prudenL Such designated reserves are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered to be adequate justification for their retention. A description of each reserye together with the intended use of the reserve is set out in note 17. At 31 December 2022 total designated reserve5 were £34.2m (2021- £28.4ml. The Trustees approved two new de5i8nated funds during the year: the Desigrbated Stipend Capital Fund, The Closed Churches Fund {see note 17). Restricted and endowment funds As set out in note 17. CDBF holds and administers a large nLsmber of restricted and endowment funds. As at 31 December 2022 re5tricwl funds totalled £9.2m (2021: £10.3m) and endowrnent funds totalled £326.3m (2021: £313.1 m). Neither are available for the general purposes of the CDBF. Liquidity Policy The CDBF has regular and predicrable cash inflow5 (principally from ￿rIsh share) and oufflows (principalty Stipend, salary and pension payments). Less frequenc cash movements include grant payments. which are also predictable. The largest Cash movements relate to properry transactions vthich are infrequent and normally have a clear lead time. The CDBF aims to hold £2m cash in instant access accounts to meet its cash needs. Where ¢ash balances fall below £1.2m or exceed £3.5m. the Finance Executive will review the position and consider large forecast cash movements such as housirbg tran￿Ctions, then take attion as required. for example drawing down or adding to investment4 a ￿0portIOn of which are kept in near liquid holdings such as p¢)oled funds with weekty dealin& with such transactions reported to Finance Executive. Grant making policy Contrtbutrons are made to the National Church to cover a proportion of its central costs and also to cover the cost of training for rninistry {see note 9). Grants are ￿ld ro other charities e& PCC5 and charitsble projeccs which appear to CDBF to suptKJrt the thJrtherdnee of its objects. The General Fund budget includes regular grants. Other are approved according to the terms of reference of the relevant fund. Investment Policy The Trustees approved an integraced Asset Investment and Management Policy in 2014 developed under the oversight of the Inves¢ment commi¢￿. The Policy was upda*d by the Investmenc Committee in 2017 and approved by the Trustees. This policy distinguishes between investment and operdtional assets and sets out the policy frnmework for both. In relation to investment assets the key principles in the p3l¢cy may be summarised as follows: The overall objectives are to creatr sufficient income and ￿pital growth to enable the CDBF to cary out its purposes consistendy year by year with due and proper consideration for future needs and the maintenance and enhancement of the fdlue of assets while they are retained. Investment funds shall be oPera￿d and compared on a total return basis Relevant benchmarks include a r2rget total reujrn of CPI + 4.5% over the long cerm (Previous￿ RPI +3%) The CDBF requires its investment assets co be managed in Complian￿ with the Church of England ethical guidelines, and ethical considerations shall form parc of the dialogue wich the Inve5tmenr Managers. The Tru5tee5 wll consider mixed-motive investment proposals which are expected to deliver financial retyrns and further the purposes of the charity 21

The Chelmsford Di•x•san Board of Finance Trustees. Report for the year ended 31 December 2022 The CDBF is assumed to be a perpetual chariry and is able to Like a long term view on investmenty ball￿ed nst the shor¢ trrm needs of the chariry for liquidiry and resources to best reali5e it5 operational purposes. The Truxees regularly review and retender Investment Managers. The last revivN was in 2016 and conduded with the reappointment of CCLA Investment Management Ltd and appointment of Cazenove Capital Management {a trading style of Schroder & Co. Limited}. Funds at 31 December 2022 Proportion of portfolio Income yield in year Totsl re￿rn in year £000 CCLA Maft Cazenove Other funds Total CBF Investment Fund ortfDIio 33,176 21,734 62 54.972 60.4% 39.5Y. 0.1% I c￿.0% 2.34 % 1.97% 9.16 9.50 Fundraising The CDBF is aware ofthe Charities (Protection and Social Invesrment) Att 2016 and the Trustees fully support the aims of thi5 legislation. The maiority of the CDBF'S income comes from other charitable l￿dIeS and underrakps ve.ry litrle dirett fundraising activity involving individual donors. Examples includè one-off Apoeals (e£. the Lent Appeal) which are promoted generally through communication5 rather than targeting specrfic individuals-. and the Friends of the Retreat House scheme vthere Retreat House guests are invited without pressure or obliption to join the 'Friend$'. The CDBF considers the origin of unsolicited donations and legacies does not share or purchase any donor data with or from thirfl parties and, in 2022. did not engage th independent professional fiJndraiser5. The CDBF did not receive anv complaifjts in relation to fundraising or raise any matter with regulators in 2022(2021.' none). Going Concern The directors have assessed vthether the use of the going concern assumption is appropriats in preparing these financial statements. The directors have made this assessment in respect to a period of at least 12 months from the date of approval of these financial statemen Parish Share payments comprise the largest proportion of income for the Diocese. 87% of Parish Share requestrd was re￿Ived in 2022. which was a significant achievement given the challenges Parishes were facing pxt COVID and rising coscs. Durtng the year a large consulration pro￿$ was entered into with Parishes regarding Parish Share apportionment for 2023. The consultation told us that Parish Share should be tfdnsparent and should enable parishes to mLrtually support each other. A new Parish Share scheme was agreed by Synod and has been implemented in 2023. It is expected tha¢ as parishes and dearwies nM)ve towffirds ministry plans which are financially sustainable. the new scheme viill achieve a higher parish share recovery rnte which will ensure diocesan financial viability moving forwards. Other factors that directors have considered relating to going concern includ& Impact of Parishes unwilling or unable Eo pay Parish Share due to affordability and dottrinal differences. It is not expected that this w511 have a material long term impatt upon the CDBF fIna￿e$. In the near term, ￿ is expected that parish share payments will increase under new scheme which will rnitiga￿ any non rAynents from individual parishes. In the longer term rf share contributions fall. cost reduttions (such as reduttions in stipendiary posts) will be necessary. This issue will remain under rewew. The costs of building maintenance, specifically linked to clergy housing and schools, and in the case of school capital works the sch¢)ols ability to cover their contributions without the requirement for loans from the DBF. Incrtrdsed budgets are planned for clergy housing improvements and there is close management of school capital works to ensure that funding is directtsj where most needed. 22

The Chelmsford Droces4n Board of Finance Tru5tee5' Report for the year ended 31 December 2022 The costs associatsd with the diocese becoming net carton zero by 2030 in line with the CO￿ General Synod decision made in 2020, which are expected to be significant over the next 5-10 years. A plan is being developed to identify what work is required and to idertify sources of funding to carry out works to properties maintained by the diocese. Inflation & Investment returns will need to be kept under dose review to ensure that over time investment returns out strip inflation to mainfain sufficient unapplied total return balances on our endowments in order to support planned drawdowns under our total return accounting policy to support stipends. Although inflation has been high over the past 12_18 months it is exFecced that inflation will fall and investment perfom)ance has been Positi￿ so there is no immediate concern. Non-financial risk5 associated with governance. major non-compliancq change in government policy and safeguarding- There is confidence thac controls are in place and that the diocese can manage any non- financial risks sufficiently. Having reviewed the funding facilities available to CDBF together with the expected future cash flov￿, the trustees have a reasonable expecrauon tha¢ charity has adequate resources to continue its attivitie5 for the foreseeable fLnire and consider that there were no material uncertainties over the charity's financial viability. Accordingly. they also continue to adopt the going concern basis in preparing the financial statements. 7. Custodian Trustse The CDBF Is custodian trustee of assets held on permanent trust by Virtue of the Parochial Church Councils {Power5) Measure 1956 and the Incumbents and Churchwardens ITrus¢s) Measure 1964 where the man4ing trustees are parochial church councils and others. These assets are not aggrerdted in the financial statements as the CDBF does not control them. and they are segregated from the CDBF'5 own assets by means of separate bank accounts. SLKh funds are predominandy managed by CCLA Investment Management Ltd or M&G Investments a5 determined by the managing trustees. The CDBF reserves the right to charge the managing trustees an administration fee where alternative investmerkt managers are used in recognition of the additional complexity such arrangements cause. Further details of financial trust assets. whose market value amounted to £17.7m at 31 December 2022 {2021: £17.8m}, are ayailable from the CDBF on reques¢ and are 5urnrnari5ed in note 25. Where propertÉes are held as custodian truse. the deeds are identrfied as such. 8. Principal Risks and Uncertainties The Trustees are responslble for the identification, miugation andlor managewent of risk To achieve this, a register of all the risks identified is maintained and, alongside 1¢ a management and mitigation strategy formed. The Finaftce Executive periodically review5 the risk regIs￿r in derail. The Trustees are invited to review the risk register at least annually, leading to formal discussion and approval of the ttrate￿c risk register. setting out risks and mitsption strdtegies. At a recent &'shop's Council meeting the Trustses agreed to review the risk register quarterly. The responsibility for delivery of the identified mitigation str2ogies is delepted to the execurive sraff or Bishops and Archdeacons as appropriate. A progrdmme of internal audit is overseen by the Audit Committee and complements the CDBFS risk management activitie5. The Trustees confirm that the major risks. to which CDBF is exposed, as identified by the Trustees and soff, have been revieNved and that systems and procedures have been established to manage those risks. The ister identifies six strategic risks vith a pr&mitigation rating of 'high'. These risk5 2nd the associated Miti￿tIon 5tratr8ies are as follow5: l ) Missional Failure This risk recognises a variety of issues vknich could lead to the church failing to fulfil its missional purpose. Across the Church of England, we are experiencing decline in congregations, particularly as we emerge from the COVID-19 pandemic, closure of some church buildings with others facing significant costs. Different theological understandings tontinue to present challenges to unity within the Diocese. Whilst the cause and presence of these factors exisc outside the boundaries of Chelmsford Diocese. there are 23

The Chelmsford Dioc•san Board of FinarbC• Trustees, Report for the year ended 31 December 2022 mitiptions tht we are tsking or can rake locally including mutual support between parish clergy, a Diocesan focus on prioritising and supporting local parish ministry, a new approach to Parish Share a church buildings group and guidelines and resources for parishe5. Additionally we have a Racial Justice Workstream and new 'Mustard Seed, children. young people and families workstream to focus on improving representation and missional ￿O￿th.. There is an SDF project management board and we provide training for our clergy, lay leaders and congregatior)s to be confident evangelists. 2) Financial This risk encompasses the threat pK)sed by a long temi structurdl defici¢ the risk of failure to amend or improve the parish share schem< the risk Fosed by the signifftcant pension liabiltty in the clergy scheme and risk of poorty managed development opportunities or lailure to opumise property land resources for mission. The m¢l]￿tIonS in place are a finance action plan, sufficiently resourced finance team, a review of the parish share modd foe 2023 and additional time liynited resour￿5 to 5UPPOrt the Property Team. 3) Incldènt or accusations of serious misconduct Whilst there is no expettation of any accusatsons of serious misconduc( or any rea50n to think that such accusations would arise, it is important that we consider the implication5 of an event such as a senior staff member being found guilty of (or accused ofj serious mis¢onduc¢ an incident or accusations of serious misconoutt in a parish current or historic. The mi¢iga¢tons include oversight provided by the Diocesan Bishop and Chief EX￿￿tiVe. links wlth Deanerles arKI Parishes, support from diocesan staff including our safeguarding team, racial justice officer and panel and communications team. We also have a bultying and harnssment policy and have annual Visitauons. 4) Governance This risk recognises the implication5 of a potential governance failure. where CDBF trUs￿eS are not able to fulfil their role. failure of trust in Synodical process or senior leadership. serious PCC failure that may result in liability for the CDBF or serious governan￿ frdilure in a'near relation" To mitigate this risk are doing or ￿￿11 take the following measures induding our Stsnding Commi¢*e considering our 5ynodical proce55es and culture, actively recruitment of people to serve on our trus￿ bcrfty and committees, make use of the abiliry to fulfil the duties of a PCC under CRR in the event of parish failure and raise greater avrnrene55 of the impact of failure of "near relations" 5) Operational Risks This risk recognises the impli¢3tions co the CDBF of opek7tional failure resulting from lack of capaeity. key person risks, physical risks e.g. terrorix incidenE loss of tsnure of office building5 {e.g. fire), 5eriou5 dats protection or IT issueslbreaches and failure to adequately maintsin church buildiw. Mitigation against such operdtional risks include the Clergy Wellbeing Covenan( gr￿t￿ sharing of knowledge among teams, 'Manuals' and guidelines for key staff, data proteets.on training for all ttaff the appointment of a Dara Protection Lead and creation of an oversight group, IT upgrade providing improved security and capabiliry. DAC athl￿ on appoinunent ol architects. a Heritsge Support OffI￿r and our DAC staff and 6) Extsrnal Risks Thrs risk otegory recognises that there are fattors external to the church that could have Significant implirations for ovr mission and ministry inclLtding climate change and other serious incidents which would affett the whole of our society ee. another pandemic, sustained fuel or food shortag< civil unrest. 24

The Chelmsford DIOC￿￿n Board of Finance Trustee5' Report for the year ended 31 December 2022 Whilst mitigations here are challenging we are working towards meeting the Church of England net carbon zero goal by 2030 and making use of our experience gained during current pandemic including use of virtual resources to adapt. Structure and governance Summary information about the structure of the Church of England The Church of England is the established church, and HM The King is the Supreme Governor. k is oryanised into M provinces (Canterbury and York) and 42 Dioceses. Each DI0￿e is a See under the care of a Bishop who is Cha￿ed the cure of souls of all the people within that geographical area. This charge is shared with priests within benefices and parishes which are sub-divisions of the Diotsse. The National Church has a General Synod comprised of ex-officio and elecced representatives from each Diocese and tr agrees and lays before Parliament Measures for the governance of the Church's afrdirs whlch, If enacted by ParliamenL have the force of $tatutr law. In addition to the General Synod, the Archbi5hop5' Council has a coordinating role for work authorised by the Synod: the Church Commissioners manage the historic assets of the Church of England. and the Church of England Pension Board administers the pension schemes for 5tipendiary ecclesiastical office holder5 and employee5. Within each Diocese. overall leadership Ile5 with the Diocesan Bishop, who exercises that input as Bishop within the Diocesan Synod. Our Diottse is divided into 23 deaneries, each with its ovm Synod and bmthin each parish there is a ParochAI Church Council (PCC) which shares with the parish priest responsibility for the mission of the church in that pla￿, in a similar VRY to that in which the Bishop shares re$ponsibilrties wth the Dio¢esan Synod. In this diocese, as part of our re-ifTH8ining ministry priority, parishes are on a journey to working together tollaborativety. often in Mission and Ministry Units common mission priorities and shared resources where apwopria Whilst each DI0￿Se is separate with a clear responsibility for a specific geographical ar4 and each diocesan board of finance is a separnte legal entity. being part of the Church of England requires and enables working together in a national framework and with nauonal church insti¢u¢ions. Oryanisational structure The Diocese of Chelmsford wa5 created in 1914. It span5 the vthole of Essex and five boroughs of East Lothn. It covers an area of1.5315quare miles with an overall population in excess of ¢hree million. The diocese is divtded into three Episcopal areas by an Area Scheme under which the Diocesan Bishop, the Bishop of Chelmsford. ha5 delegated certain authority co the Bishops of Barkin& Bradwell and Colchester in relation to the Archdeaconries in those areas. Since 2013 there are seven Archdeaconrie5. Each Archdeaconry is subdivided into deaneries, there being a total of 23 deaneries across the Diocese. The de8neries are further subdiyided into 467 parishes 25

Tho Chelmsford Dioresan Board of Financ• Trustees, Report for the year ended 31 December 2022 Structure and governance (continued) Diocesan governance The rtatutory governing body of the Diocese of Chelmsford is the Diocesan Synod. which is an elected body with represenration from all parts of the Diotese. Membership consists of ex officio members. including the Rishops, tthe Dean and Archdeacons,. Cler￿ members elected by the House5 of Clergy in Deanery Synods,. lay persons elected by che Houses of Laity in Deanery Synod5: up ¢0 five persons who may be co-opted by each of the House of Clergy and the House of Laity and a maximum of eitht members nominated by the Diocesan "shop. The Di¢xese is governed by Standing Orders which were updated in June 2012. The Di0￿san Synod meets two or three times a year. Many of Diocesan Syn¢Jd's responsibilities have Eeen delegated to the Bishop's Council. the Bishop's Council Standing Committee or the Finance Committee. Company Status The Chelmsford DiL)cesan Board ol h'nanee jLDBF), was formed tt) manage the financial afrdirs The company. I and hold the assets of the Diocese. It was incorpornted on 16 July 1914 as a charitable company limi￿ by membership guardntees (No. 137029) and its governing instrument is the Memorandum and Articles of Associa(ion which were most re£endy amended by Special Resolution in June 2012. Revised Articles of Association were approved for submission to the Chariry Commission in Novemkr 2018 and we continue to avrait detern)ination by the Commission. CDBF is registered with the Charity Commission (No. 249505). Every eliy'ble member of Diocesan Synod is a member of CDBF for company law purposes and has a pers¢)nal liabilitr/ limited to £ I UlKler th.eir guarantee as a company member in the of it king wound up. Decision-making structure Corpornte priorities and the overall financial strategy for the Diocese (in its primary objett to promote, asslst and advance the work of the Church of England within the Diocese ol Chelmsford) are set by the Diocesan Synod and the CDBF. The company meets once a year in general meeting to receive and approve the annu21 reptsrc and financial statements and to appoint the auditors. The Diocesan Synod each year receives and agrees the annual budge4 prepard and approved by the Trustees. The Trustees, meeting within the contexc of the Bishop's Council. hold up to six meeting5 during the year to formulate and coordinate polieies on mission, ministry anii finance. Certain executive functions of CDBF are undertaken by the Finance commi￿e. whose members are the Trus￿e$ and Directors of CDBF. The Finance commit￿'S ￿rrn$ of reference are as follows: tk*rmine policy, in par¢icular for. Ministry numbers, Clergy Stipends, ca￿Tal Budget, Revenue budget levels Grnnt making and Investments. Monitor such policy decisions. Approve referrnl of Budgets to the Diocesan Synod. Approve and SI￿ the annual report and financial ststements after recelvlng a report from the Audit Commiecee. Agree remuneration of the Auditor each year. Receive a report from the Finance Execu¢ive at each meeting. Receive minutes from all Sub-Committee5. Handle any business referred by the CDBF. DI0￿$an Synod or 8ishop's Council. Creatr and dissolve S￿￿comMit￿es as required. Appoint members of SijtrtrCommitt￿ and its representatives on other Diocesan bodies. 26

The Chelmsford Diocèsan Board of Finance Trustees, Report for tho year ended 31 December 2022 Structure and governance (continued) Committee structure The Finance Committee's remit Is set out above., it is supwrted by its su&committee& Finance Executive handles routine busines5 on behalf of the Finance Committee and develops the budget and other proposals for Finance Committee's con5ideratiorb. Audit Committee responsible for assisting the Finance Commtttee in the discharge of its responsibilitie5 for financial reporting and internal control. Houses Committee res￿nSible for making decisions concerning the operntional rrAnagement of all clergy houses for which the CDBF has re5ponsibiliry. Investment Committee responsible for recommending policy and making decision5 concerning the management of Glebe property and Investments. Remuneration and determines remuneration policy and annual salary awards. and oversees the Governance Committee effectiveness ofgovernance across the CDBF. Diocesan Misslon and Partoraj Commlttee (fflembership of which is c￿￿rMInuS Y￿th the Bishop's Council) is responsible for pastoral regrganisatyon. taking account of clergy numbers and the need for new patterns of minisry. Diocesan Advisory Committee advises on matters concerning churche5 and places of worship SLKh as the grantyng of faculties, archaeology. art and the history of places of w￿r$him the use and care of places of Y￿rshiP and rheir contents and the care of churchyards. Diocesan Board of Education promotes education, religious education and religious worship in schools in the Diocese. It also promotes and advises governors of church schools in the Dioctsse. Bishop's Council and Finance Committee Bishop's Council consists of 17 ex officio members. 3 clergy elected by the Hcmjse of Clergy from among their number (l from each Eplscopal area), 9 lay persons detted by the House of Laity from among their number (3 from each Episcopal area), 3 lay per50n5 appointed by and from the membership of each Area Mission & Pastoral Committee (I from each Epscopal area) and a maximum of 6 members nominated by the DIO￿an Bisho Finance commit￿ consis(s of the Chair and Vice Chair of CDBF (who are also members of Bishop'5 Council) and those other members ofthe Bishop's Council not othenyise disqualified from membership such as persons remunerated by the CDBF. Trustee recruitment. selection and induction Trustees are members of the Finance Commtttee and are seletted as Set out above. Trustees are offered an inducrion when first appointed. Trustee trdining is arranged at the start of each triennium and subsequently as appropriat& An element of Trustee training is rypically included in the wogramme for the annual day meetin& While some senior SLiff have job titles intorporating the tide 'Director'. they are not directors of the ttjmpany for the purpJse5 of company law. All Trustees are required to maintain their entry in che record of declardtion5 of in￿eSL 27

Th• Ch•lmsford Diotesan Board of Finance Tru5tee5' Report for the year ended 31 December 2022 Attendance at Trustee Meetings Number of meetings eli&ble to attend Number of meetings a￿nded Percent4e of elrwbje attended Mrs Isabel Ad¢ock The Reyd Katherine de B￿r¢ler The Ven Christopher Burke Mr Philip Carnelley The Ven Elwin Cockett The Rt Revd Lynne Cullens (from 2013123) Mrs Mary Durlacher Canon Roger Ennals The Rt Revd Gulnar Frnncis-Deqhani The Reyd john Fry Canon Robert Hammond Mr Frank Hawknns The Very Nitholas H•nsh311 Thè Ven Vanèssa Herrick 60% 40% loo% 500% loo% i(0% loo% Mrs Le51eyludd The Rt Revd Roger Morri5 Mr jeffrey Mu5hens Ilrom 26ll123) Mrs Michelle ObeThJe The Ven Ruth Patten I C4J% The Rt Revd DrJohn Perurnba￿th The Ven Michid Ibwer (from 2616f22) The Revd Canon Jane Richards The Revd Canon Nicholas Rowan Canon Adrian Smith Mr Brian Smith The Ven Elizabeth Snowden (until 15110122) Mr john Tipping Mr john Wintsrbotham loo% loo% loo% loo% loo% loo% loo% 28

The Chelmsford Diocesan Board <rf Finance Trustees. Report for the year ended 31 December 2022 Remuneration of key management personnel The Remuneration & Governance Committee reyiews the emoluments of senior employees on an annual basis. The Committee's membership is the Chair of the CDBF, the Bishop of Chelmsford, and the Lay and Clergy Vice Presidents of Synod. The Committee also de￿rMineS any cost of INing pay increase for employed ttaff and reviews other marters relating to employee remuneration as required. Delegation of day to day delivery The Trustees and the sub-commitLees whith a5S15t them in the fulfilment of their responsibilities rely upon the Chief Executive & Dioces2n Secretary and her colleagues for the delivery of the day to day attivities of the company. The Chief Executive & Diocesan Secretary is given specific and generdl dele￿ted authority to deliver the I￿sInesS of the CDBF in accordantr with the policies framed by the Trustee5. Funds held on behalf of schools The DBE (as incorporatpd within the CDBF) receiyes IO% contributions from govprnors of churth sch¢Jo15 Y￿thin the Di0￿Se in connettion with major repair capital projects to church schools and also government grants in connection with the Same. The DBE administers these monies as managing agent and makes appropriate payments to contractors for work carried OUL The monie5 do not belong to the DBE and as such the recelpts and payments are not treated as income and expenditure in the sta￿ment of Financial ActFVities. Any monies held at the balance Sheet datr are treated a5 creditors on the balance sheeL The income and expenditu￿ relating to school projects not reflected in the Statement of Financial Actlvities amounted to £1.777m and £2.763m respectyvely (2021: £1.737m and £0.828m). Historical assets arising from unexpended accumulations of sale proceeds of redundant Church of England School properties are accounted for in the restricted Church Schools fund and a￿ managed by the CDBF in consultation the D8E and held in a CDBF restricted fund detailed in the accounts. 29

Th• Chelmsford Diocèsan Board of Financè Trustees, Report for the year ended 31 December 2022 Trustees, responsibilities The Trustees are responsible for prepring the Annual Report and the financial sratements in accordance with apFlicable law and regulati¢)ns. Company law requires the Tr￿￿e$ (as Directors) to prepare financial Stat￿)￿nts for each financial year. Under that law the Trustee5 have elected to prepare the financial ststements in accordance with Untted Kingdom Generally Acceptsd Accounting Prattice (United Kingdom Accountinz Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the stste of the affairs of the CDBF and of the surplus or deficit of the CDBF for that period. In preparing these financial ststements the Trustees are required to: Selett suitable accounting policies and apply them consistently Observe methods and principles in the Charities SORP Make judgeryients and estimates that are reasonable and Fyudent State whether applicable accounting standards have been followed. subj'ec¢ to any matrrial departures disclosed and exp12ined in the financial st2trments Prepare the financial statements on the 8oin8 concern basis unless it 15 inappropriatr to assume that the company will tontinue in operation. The TrUS￿eS are also responsible for keeping proper accounting records that disclose with reasonable accurdcy ac any time the financial position of the CDBF and enable them to ewJ5ure that the financial Sta￿rnents comply with t%1 e Companies Att 201 l. They art a150 responsible lor 5afezuarding the dssets of the CDBF. and hence for taking reasonable steps for the prevention and detection of fraud and ¢xhw irregularities. The Trustees are responsible for the maintenance and integrity of the corFQrnte and financial information included on the CDBVS website. Legislation in England & Wales governing the preparntion and dissemination of financial statements and other information included in Annual Reports may differ from legislation in other jurisdic¢ions. Statement of disclosure to the auditors So far as the Trustees are awdre: there 15 no relevant audic information of which the charirnble company's auditor5 are unavrdre. and we have taken all the steps that we ought to have tsken as Trustees in order tn make ourselves aNrdre of any relevant audit infonnation and to es¢ablish that the charitable company's auditors are avore of that information. Appointment of Auditors The re-appointment of haysmacintyre as auditors tn the CDBF will be proposed at the Annual Generydl Meeting. 30

The Chelmsford Diocesan Board of Finance Trustees. Report for the year ended 31 December 2022 Administrative details Company regiscrauon number Charity registration number Registered Office 137029 (Enland & Wales) 249505 53 New Street, Chelmsford CM I IAT Tel: [phone] Trustees In accordance with the Companies Act 2006 and the Statement of Recommended Practice: Accounting for Charities (Second Edition. effeecive l January 2019), the Companies Act 2006 and applicable accounting standards. the Trustees {for the purposes ofcharicy lawl and directors {for the purp05e5 of company law) during the year andlor as at the date of Si￿1ng V￿e. President Chair Wice-chair Area Bishops The Rt Revd Gulnar Frdncis-Deqhani Mr Jeffrey Mushens (from 2012123> Mr Frank Hawkins (also actyng Chair until 2012123) The Rt Revd Roger A B Morris The Rt Revd Drjohn Perumbalath The Rt Revd Lynne Cullens from 2013123 The Ven Christopher Burke The Ven Elwin W Cockett The Ven Vanessa Herrick (until 31103123) The Ven R￿h Patten The Ven Michael Power (from 26106122) The Ven Elizabeth Snowden (until 15110122) The Very Revd Nicholas J Henshall (untyl 231Y23) The Very Revd John Paul Kennington (from 241Y23) Archdeacons The Dean Interim Dean Lay Vice-President Clergy Vl£e-Pre5idents Canon Robwt l HammorKI The Revd r ane Ri=hards luntil 3011123> Elected or appointed to fill a vxancy Mrs Isabel Adcock Canon Roger J Ennals The Revd John Fry Mrs Michelle A K Obende Canon Adrian J Smith Mr John H Win*rbotham Mr John ripping Mrs Jill Elizabeth Readlngs (from I W I ll3) Mr Brian Smith The Revd Katherine de Bourcier Mr Philip Carnelley Mrs Mary Durlacher Mrs Le51ey V Judd The Revd Canon Nicholas E Rowan M5 Hazel Thomas (from 2uin3) No Trustee had any beneficial interest in the company during the year. 31

The Chelmsford Diocesan Board of Finance

Trustees' Report for the year ended 31 December 2022

Administrative details ( continued)

Senior Staff

The day to day management of the Chelmsford Diocesan Board of Finance is delegated to the Chief Executive. The officers who served during the year and at the date of signing are:

Chief Executive & Diocesan Secretary

Michaela Southworth

Director of Communications & Media Head of Property Director of Education

Director of Finance

Head of Finance Dean of Mission, Ministry & Education Head of Service Delivery Head of Safeguarding HR Manager Programme Manager General Manager Retreat House Pleshey

Thomas Geldard Alex Reeve The Revd Timothy Elbourne (to 31/01/22) Rob Merchant (0 I /02/22 to 31 /0 I /23) Carrie Prior (from O I /02/23) Emma Butler (to 13/05/22) Paul Setterfield (from 06/03/23) Margaret Essery (to 31/03/22) The Revd Rob Merchant Nathan Whitehead Amanda Goh Rachel Towns Dawn Weddell Graham Dowling (from 30/05/22)

Professional Advisers Auditors

Haysmacintyre LLP IO Queen Street Place London EC4R I AG

Solicitors and Registrars

Winckworth Sherwood Minerva House 5 Montague Close London SE I 9BB

Bankers

Barclays Bank pie National Westminster 40-41 High Street Bank Pie 4-5 High Street Chelmsford CM I I BE Chelmsford CM I I FZ

Investment Managers

Glebe Property Agents

Cazenave Charities CCLA Investment 12 Moorgate Management Ltd London EC2R 6DA 85 Queen Victoria Street London EC4V 4ET

Strutt & Parker Coval Hall Chelmsford CM I 2QF

In approving this Trustees' Report, the Trustees are also approving the Strategic Report included above within their city as company directors.

25/05/2023

32

The Chelmsford Dioc•san Board of Financè Independent auditors, report to the members of The Chelmsford Diocesan Board of Finance Opinion We have audited the financial statements of The Chelmsford Ditxesan B¢)ard of Finance for the year ended 31 tkcember 2022 which comprise Statement of Financial Ac¢Nioes, the Summary Income and Expenditure Accoun( the Balante Shee¢ the Statement of Cash Flows and notrs co the financial statements, including a 5umrnary ol signiticant accounting policies. The financial ￿porting Iramework thai has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Stsndard 102 The F￿an(la1 Reporting Stondard typlicable in the UK and Republic of Irelond (United Kingdom Gener7lly Accepted Accounting Prattice). In Dur opinion, the financial sratrments: "Ye a true and fair Yiew of the state of the eharitsble company's affairs as at 31 December 2022 and of the charitable companls nec movement in funds including the income and expenditurt for the year then ended., have been properly prepared in accordance with United Kingdom Genernlly Accepted Accounting Prnrtice,. and have been prepared in accordance with the requirements of the Companies Ac¢ 2006. Basis for opinion We conducted our audit in accordance with Intrrnauonal Srandards on Auditlng (UK) (ISAS (UK)) and applicable law. Our responsibilitye$ under those scandards are further described in the Audttorfs responsibilitie5 for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are releydnt to our audit of the financial Statements in the UK. including the FRC'S Ethical Srandard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have Obtain￿ is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststsments. we have concluded that the trustees, use of the going ¢C￿cern basis of accounting in the preparation of the financial ststements is appropriats. Based on the work we have performed, we have not identified any ma*rial uncertainties relating to events or conditions tha( individually or collectively, may c25t significant doubt on the charitable company's ability to continue as a going Con￿rn for a period of at leax tsvelye month$ from when the financial ststements are authori5ed for issue. Our responsibilityes and the responsibilities of the trustees with respect to going concern are described in the relevant seccions of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Trustee5' ReporL Our opinion on the financial statements does not cover the other information and. except to the ex￿nt othemse explicitly stated in our reporll W￿ do not express any form of a55urance conclusion thereon. In Connection our audit of the financial statements, our responsibiliry is to read the other inforniation and. in doirbg so. consider whether the other inft)nnation is materially inconsistent the financial sratements or our knowledge obrained in the audit or otherwise appears to be materially misstated. liwe identify such material inconsistencbes or apparent material misstatements, we are required to determine whether there is a material misststrment in the financial st3tements or a material mi55tatement of the other information. If, based on the work we have performed. V￿ conclude that there is a material misstatement of thi5 other information, w￿ are required to report that fact. We have nothing to report in this regard. Page 33

The Chelmsford Diocesan Board of Financ• Independent auditors. report to the members of The Chelmsford Dlocesan Board of Finance Opinions on other matters Prescrib￿ by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audiL the information given in the Trustees. Report (which includes the strawic re￿rt and the directors, report prepared for the purposes of company lavi) for the financial year for which the financial statements are prepared is consistent with the financial St2￿Ments. and the strategic report and Éhe directors. report included within the Trustees. 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 d)ari¢able company and its environment obtained in the course of the audi¢ we have not Ident￿led material misstatements in the Trustees, Rep3rt (which incorpora￿5 the strategic report and the direccors. re￿rt). We have nothing to report in respect of the following ffratters in relation to which the ComrAnies Act 1006 requires us to report to you rf, in our opinion- adequatt accounting records have not teen kept by the tharitable company: or the charitable company financial statements are not in agmment with the accounting records and returns: or certain disclosures of trustees, remuneratyon Specif￿ by law are not made,. or have not received all the information and explanations we require for our audiL Responsibilities of trustees for the financial statements As explained more fulty in the trustees. responsibilities statement set out on 24, the trustse$ (who are also the direcwrs of the charitable company for the purposes of company law} are responsible for the preparduon of the financial statements and for being 5ati5fied that they ￿ve a true and fair view, and for Such intsrnal conrrol as the trustees determine is necessary to effdble the preparation of financial scatrments that are free from material misstatemen¢ whether due to fraud or error. In preparing the financial sratements, the trustees are responsible for assessing the charitable compan￿$ ability to continue as a going concern, disclosing* as applicable, mattery related to going ￿onCertr. and dsing the going concern basi5 of accounting unless the trus￿eS either intend to liquidate the charitable company or to cease operntions, or have no realistic akernatiye but t£• do so. Audito￿$ responsibilities for the audit of the financial statements Our objective5 are to obtain reasonable assurance aE(Jut whether the financial statements a5 a v4hole are free from material missr2temen( whether due to hud or error. and to issue an auditor's report that includes our opinion. Reasonable assurnnce is a high level of assuranc< but is not a gUaran￿e that an audit conducted in accordance ISAS (UK) will always detett a material missratement vthen it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably b2 expetted to influence the economic decisions of users (aken on the basis of these financial sratemencs. Irregularities. induding fraud, are insrances of non-compliance with law5 and regulations. We design procedure5 in line wtth our responsibilitie& outlined abov< to detett material misstatements in respett of irregularities. including fraud. The extent to which our procedures are capable of detec¢ing irregularities. including fraud is detailed beloyf. Based on our undersranding of the and the environment in which it operatr& we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales. and we considered the extent to which non<ompliance might have a material effeLt on the financial statements. We also considered those laws and regulations that have a direct impatt on the preparation of the financial Sta￿ments such as the Companies Att 2006 and the Charities Act 2011. Page 34

The Chelmsford Diocesan Board of Flnance Independent auditors. report to the members of The Chelmsford Dlocesan Board of Finance We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included: Inspecting correspondence wth regulators; Discussions with management intluding consideration of known or suspected Instan￿ of non- compliance with laws and regLFlation and fraud,. Reviewing the controls and procedures of the group relevdnt to the preparation of the financial statements to ensure these were in place throughout the year, including during the Covid-19 remote Y￿rkIng period: Evaluating management's controls designed to prevent and detect irregularitie5' Identifying and testing journals. Challenging assumptSons and judgements made by management in their critical accounting estFmates in oarticular valuation of prooerry assets and investment properties. and Reviewing the assumptions and judgements used by the professional actuary in relation to the clthritable companls pension valuation. Because of the inherent limitations of an audi4 there is a risk that we will not detect all irregulariue& including those leading to a material misstatement in the financial statements or non-complvance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and trnnsactions refflected in the financial s¢atewnents, as we vdll be less likely to become aware of insrances of non<ompliance. The risk is also greater regarding irregularitie5 oceurring due to fraud rather than error. as frdud involves intentional concetlmenL forgery. collu5i0n, omission or misrepresentation. A fbjrther descriptton of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's websitr at viww.frGorg.uklauditorsresponsibilitie& This description fornis part of our auditor's report. Use of our report This report 15 made solely to the charitable company's membws, as a ￿dy. in accordance with Chapter 3 of Part 16 of the compani￿ .A¢tr 2006. Our audit work has und￿ttken so +4at V￿ might state to +he charitable company's members those matrers we are required to scate to them in an Auditor'5 report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibiliry to anyone other than the charitable company and the charttable company's member5 as a body, for our audit worl for this reporl or for the opinions have formed. Adam Halsey {Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Sratutory Auditors l O Queen Street Hace London EC4R IAG Date.. 9 June 2023 Page 3S

The Chelmsford Diocesan Board of Finance STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2022 Unrestricted fund5 Restricted Endowment Total Funds 2021 Totol Genval D5ignat¢d 2021 2022 Fund5 2012 Fund5 2022 2021 Not• L'ooo £'NJo Incomefrom: tknation5: PHri$h c¢n¢rlbutiw¥ Other donations and 15675 L432 13.67S 5.7S7 13.544 7.076 1.276 1523 295 3,030 Charitable actw In¥estments 207 1,436 1.6S5 her Trading activities.. Parsonage rents rere￿3bk Oth¥ Income 738 10 722 490 20 516 701 Total In¢ome 14266 791 3,257 1.438 23.752 24,842 Exptndbturè on Ralslng fund In¥esthient mJna8unent Chariubk actWiliE5 27 3,242 2é4 291 23.849 230 22.651 19,848 713 46 TO￿ eXp￿￿K￿rÈ 11.848 713 310 24,140 22.88,, Net surplus l (deficlt) before In¥•stsn•nt galns (lJ82) 71 {12) (388} 1.961 Net I￿n5 11105se5} on nve5tments l J 10 (10) (1,100) {4,181) (5.281} 5.685 N•t surplus l (dtficit) b¢for transf•rs (1,572) (1,112) (3,053) (5,669) 7.646 Transfw b&ween funds 2.550 (5.614) Net surplus1 (delklt) before other gaub5 and los 1,492 618 (4667) (S,é69) 7.646 Gains makbatbjn of ftxed a55et5 60 3,124 21.663 24.912 23,505 AC￿ar￿g￿n51{10s$e$l on def￿ benefrt pen5*X 5cheme5 21 2311 230 N•t mov•m•nt Its funds 1,552 S,742 (1,047) 13.220 19,473 31.151 Totall￿fid9 brought fonvard 4,645 28,436 10,275 313.094 3S4450 325.299 Totd fund5 ¢arrl•d f•rw¥d 1,197 34,178 326,320 375,92J 356.450 The no￿ on p•ge$ 40 to 70 form part of thwe financial statement& Page 36

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 Decernbor 2022 Total 2022 Totol 2021 £'ooo fooo Total incorne 22,314 22.724 Tod eXPend￿tsre (23.831) P2.528) Operating Profrt Net liosses) on iiyestments (1.5171 (I,ioo) 196 550 Net Incon* lor the year (1617) 846 Other coryrehensrle ReV￿￿tation Off￿ed assets 3349 5,614 3.150 2.441 Net Z5set5 transferred from Endowrrnnt Tod conyrehen$Ne incon 6246 6.437 The irKome and expendiwre account is derived from the Statement of Financi￿ Actyvitie5 with movements in endowm•n¢ funds excluded to compy with company law. AJI I￿orne and expenditure 15 derived from continuing att4vitses. The notè5 on pages 40 to 70 form prt ol these financial statsment& Page 37

The Chelmsford Dioc•san Board of Financ• Notes to the financial statements For the year ended 31 December 2022 BALANCE SHEET For thè y•ar •ndÈd 31 Dècèmbér 2Q22 Company number: 137029 1021 £'ooo 2021 £000 Note £'ooo É'ooG Fixed Assets Tan&ble asse¢s Invèstments 12 308,004 65,004 289,525 64.377 373,OQJ 353,902 Current assets A55ets hdd for Sale 12 10.S27 7.265 Debtors: an￿unt5 I￿ling due after rMre than one year Debtors: arrKiunts I￿lIng due within onè year Cash a¢ bank and in hand 14 278 341 3,772 4,036 2,997 9.202 18,613 19.805 Credltorn anN￿n[S f￿lIng due wlthln one year (6,739) {16.403J Net currenr a53ets 11.874 3,401 Total ￿ets less Cur￿nt Ilabilities 384,812 35 7.303 Creditor5.' a￿￿nts fauing due after nwe than one year 16 (8,959) (874) Net assets excludin8 pensi¢)n xheme liabilities D•fin•d benefft pensic) sch•nx liabllbtks 375.923 356.429 Net assets Includlng penslon Kheme Ilabllltle5 375.923 3S6.450 Funds Endowwnt Funds (including investhnt revaluatlon reserve of £206.44m {2021 £187B4m) Restricted Funds (including investme￿¢ reV￿uation reserye of £2.29m {2021 £3.42m) Designated Funds (including investm￿£ re¥￿Uati restrve of £17.49m {2021 £14.78m) Gener￿ Funds {including investsmit reyaluatitsn reserve ef £1.46m (2021 £129m) 17 324J20 313,094 9.228 10,275 17 34,178 28,436 6.197 4.64S Total Fund5 375.923 356,450 Th Inan were appwoved and authoriséd for issue by the Trusteès on 25 May 2023 and signed on their behalf. by.. effrey Mu5hens, CJa The noos Cn pages 40 to 70 forni part of these financi741 sts*ments. Page 38

The Chelmsford Diocesan Board of Financ• Note5 to the financial statements For the year ended 31 December 2022 STATEMENT OF CASH FLOWS 20Z2 2021 £'ooo Net Cash u$ed In from op•ratin8 activiti•S (2.8S4) (542) Cashtlow from InvestSng artbvltles Oividends Snterest and rent from investments 1,655 (393) 896 1.523 Interest paid Procee& from the sale of tanY￿e fLxed assets Proceeds from the sale of held for trnding assets Pr(xeeds from the Sale of investments (166) 5.183 2.7Z4 3,611 490 3.664 4.777 Proceeds from the sale of dosed churches Purchase of ttn&ble fLxed assets for the use of the CD8F Purchase of fixed assets investments (8S6) (9.529) (1.771) (io. Isi) Net Cash used In Investlng 4rtlvltl¢$ <1,388) 3.159 Cuh fk•w$ from financing activit••s Newlgans rKeived by CDBF Loans repaid by CD8F Net Cash provlded by financlng actlvitles 8,ty85 (9,009) fl,972) (924) (1.972) Change in cash and cash equivalents in the reporting peiiod Cash and cash equlvalents at l January Cash and cash equlvalents at 31 December {5.166) 9.202 4.036 645 8.557 9.202 Reconclllatlon ol not Income to net cash used In op¢rtlng a¢tltAtI•$ 2022 2021 £'ooo Net income for the year ended 31 DK•mb•r 19,473 31.152 Adlustrrtnts fr*r. Depreciatyon Gains on revaluation of fixed a55ets 92 93 (24,912) (1,655) 393 3,505) {1.523) 166 Dlvldend5, interest and rent from investmer Interesr paid Galn on Sale of functioTral assets (178) 5.741 {460) {682) {5.685J L055es (gains) on revalUat￿n of investments Gains on sale of investments Decrease in stock 22 Decreasellincreasel In debtors Increaselldecrease} in creditors (712) (635) (758) 178 Net cash used in op•ratins activities (2,854) {542) The notes on pages 40 to 70 form part of these financial statement& Page 39

The Chelmsford D10c￿an Board of Finan Notes to the financial statements For the year ended 31 December 2022 PRINCIPAL ACCOUNTING POLICIES The finap.cNIl sratemeryts have been prepred under the historical cosc convenrion. except for freehold properties which are included at their fair Yalue as determined under the applicable Ydluation method as detailed below. and fLxed ksset investments which are included at their market value at the balance Sheet date. The financial statements have been prepared in accordante wtth the Statement of Recommended Practyce for Charities {Second Edition, effettive l JanL4ry 2019), the Companies Act 1006 and appli13ble accounting standards (FRS 102). CDBF mee¢s the definition of a Public Benefic entrry a5 defined by FRS 102. The principal accountin8 policies and estimation technique5 are a5 follows- (a) Income All income is included in the Statement of Financial Acrryiues (SOFA) when the CDBF is legally entitled to it as income or Gipitsl respectively, ultimats receipt is probable the amount to be recognised can be quantrfied wrth reasonable accuracy. Parish Contribu¢ions are recognised as income of the year in respect of vthich 1¢ is receivabl Rent receiwdble is recognised as income in the period with respect to vthich it relates. iii) Inte￿5t and dividends are recognised as income when receivable. iv) Grants received which are subject to pre<onditions for entitlemenc specified by the donor which hav* not been met at the year-end are includa in ¢red¢tors to be carried forvrdrd to the following year. Parochial fees are recognised as income in the year to which they relate. vi} Donations other than grants are recognised when receivable. vil} Gains on disposal of fixed assets for the CD8F's own ijse (i.e. non-investsnent assets} are accounted for as other income. Losses on di5￿K)saI of such a55ets are accounted for as other expenditu viii) Svpends fund income. The Stipends Fund Caprtal account is governed by the Diocesan Stipends, Fund Measure 1953, as amended, and the use of the income 15 restric￿ for clergy stipends. However, the income is fully eX￿nded within the year of re￿ipt and the legal ttrittions, therefore, are satisfied. It is on this basis that the income and the (normally much Lirger) related exwditure are both included in the unrestricted column of the Statement of Financial Activtties for the sake of greater clarity and simp(icty in financial re￿rrIn&

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 PRINCIPAL AccouKfiNG POLICIES (CONTINUED) (b) Expenditure Expenditure is Ind￿ea on che accruals basis anii has been clas5ifie¢i under headings that awegL all costs related to the Sratement ol Financial Activity catrgory. Costs of raising funds are consfrained to costs relating to the temporary renting out of parsonages and investment rnanagement costs of glebe and any other investment propertyes. Charitable exFenditure is analysed between contributions co the Archbi5hops' Council. expenditure on resourcing mission and ministry in the parishes of the diocese, expenditure relating to the running of the diocesan retreat centre. and expenditure on education and Church of England schools in the diocese. iii) Grants pardble are charged in the year when the offer is conveyed to the recipient except in those case5 where the offer is conditional on the recipient 5ati5fying Performan￿ or othe." discretionary requirements to the satisfaction of the CDBF, such grants being recognised as expenditure when the condiuons at¢aching are fvlfilled. Grants offered subjecc to such conditions which have not been met at the year-end are noted as a commitmen( but not accrued as expenditure. iv) Support costs consist of central managemen( administfdtion. and governance costs. The amount spent on raising funds and other attNities are eonsidered to be iMma￿rIal and all support costs are allootea co the purpose of charitable activities. Costs are allocated wherever possible direcdy to the aaivicy to which they rela￿ butwhere such direct allocation is not pO￿lb1< the remainder is allocated on an approximate staff time basis. Pension contributions - the CDBF participates in three pension schemes to provide pension benef￿ based on final pensionable pay. namely the Church of En8land Funded Pensions Scheme {clergy), the Church of England Defined 8enefir5 Scheme part ofthe Church Workers Pension Fund. the Teachers Superannuation Scheme. The CDBF also participatss in the Church of England Pension Builder Scheme (fornierly known as Defined Contributions kheme) part of the Church Workers Pension Fund. Details of the schemes are set out in notr 21. The pension costs charged as expenditure represent the CDBF'S contributions pardble in respect of the accounting period, in accordance wtth FRS102. Defiat funding for the pension schemes to which CDBF participates is attrued at current value in creditors dlstinguished be￿ contributlons falling due withln one year and after more than one year. vi) Short term employee benefits including holiday pay are recognised as an expense in the peiiod in vthich the Servi￿ 15 re￿iVed. vii) Employee terniination bend￿S are accounted for on an accrual basis and in line with FRS 102. {c) Going concern Having reviewed the fundityd facilities available to CDBF together with the expected future cash flows. the trustees have a reasonable expertation that charity has adequate resources to continue its activities for the foreseeable future and consider that there were no ma￿rIal uncer(ainties over the chariry'5 financial viabiliry. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements. Page 41

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (d) Tangible fixed assets and depreciation Freehold properties Depreciation is not provided on buildings as any provision (annual or eumulative) V￿uld not be material due ¢0 the very long expectrd remaining useful economic life in each caw and because their expected residual value is not materially less than their (arrying value. The CDBF has a policy of regular structurdl inspettion, repair, and maintenance, which in the case of residential properties 15 in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikety to deteriornts or suffer from obsolescence. In addition, disposals of properties occur well before the end of their economic lives and disposal proceeds are usually not less than their carrying value. The Trustees perform annual impairment reviews in accordance v￿th the requirements of FRS102 to ensure that the cai'rying Ydlue is not more than the recovernble amoiillL Properties for che charity's own use All houses (excepting properties Su￿.eCt co value linked loans shown below) are included in the balance sheet at professional market fdluation. Such houses are reydlued annually. Propertie5 subject to value linked loans Properues which have been bought with the assistanee of value-linked loans from the Church Commissioners are stated using the Ydlue of the relaod loan at the balance sheet dare. Each ye3r end the raspettive property and loan are carried at an index linked current valuation basis. Par50nage houses The CDBF has followed the requirements of FRS102. in its accountingtreatment for benefice houses <parsonages}. FRS102 requires the accounting treatment to follow the sub5tsnce of arrangements rather than their stricc legal form. The CDBF is formalty responsible for the maintrnance and repair of such properties and has some jurisdiction over their future use or potenfial sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbenL The Trustees therefore consider the mort suitable accounting wlicy is to capitalise such propercies as expendable endowment assets and to carry them at their estimatèj current market value. Parson28e houses are revalued annually. (e) Other tangible fixed assets Depreciation is provided to write off the cost (less any ultimate disposal proceeds at prices ruling at the time of +the asset s acquisirion) of other fixed assets over *their currentty expected useful economic lives at the folk)wng initial rates: . Solar PV panels Motor vehicles CoMpU￿r$ Furniture and office equipment 4% per annLTrm strdight line 25% per annum straight line 25% per annum s¢raighc line 20% per annum straight line All capital expenditure over £ 1.000 is capitalised. Page 42

The Ch¢lmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (fj Other accounting policies Fixed asset investments - investment properties intlu¢ie agricultural holdings and commercial operties vthich are professionally valued annually. Other investments are included in the balan￿ sheet at market value and the ￿1n or loss on revaluation taken to the Statement of Financial Acrivioe5. Financial Instrumerts - Other than equity loans which are initially recognised at the amount received, with the carrying amount adjusted in subsequent year5 to refiea the value based on the proportion of the current value of the relevant property and any accrued interesc the company only has financial assets and liabilities of a kind Ihai qualify as basic financial instruments. Debtors- Trade and other debtors are recognised at the setdement amounr due after any trade discount offered. Prepayments are valued at the amouryt prepaid net of any trade discounts due. At the end of each reporting period debtors are assessed for evidence of impairment. If an asset is impaired an imw'rment loss is recognised in the Statement of Financial Actrwioes. Cash - Cash at bank and ¢25h in hand includes cash and Short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar aceount Creaitors- ￿SiC iinancial liabilities, including trade and other payat)Ses and bank loans, are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can ￿ measured or estimatsd reliably. Creditors and provisions are recognised at trdnsattion price. Leases - The company has entered into operating Sease arrangements for the use of certain a55ets. the rental for which is charged in full a5 expenditure in the year to which it relates. Where rent free periods are &'ven as part of an operafing lease, the impart of this rent-free period 15 refiecd in the Statement of Financial Activities over the shorter of the overall lease trrm or firs¢ break clause. b) d) (g) Fund balances Fund balan￿ are splrc betsveen unrestricted (genernl designated). restricted and endowment funds. unrestr1c￿d funds are the CDBFS CorPorn￿ funds and are freely available for any purpose within the charir2ble company's objects, at the discretion of the CDBF. There are ￿ types of unrestricted funds: General funds which the CDBF intends to use for the general purposes of the CDBF and Designated funds set aside out of unrestrictèl funds by the CDBF for a purpose specified by the Trustee5. Restricd funds are income funds subjett to conditions imposed by the donor as specific rnis of trust, or else by legal measure. Endovmient funds are those held on trust to be retained for the benefi¢ of the charitable company as a capital fund. In the case of the endowment funds adMini￿red by the CDBF (Stipends Fund Capital and Parsonage Houses). there are discretionary powers to convert capitsl into income and, as a resul¢ these funds are classified as expendable endowmenL Endowment funds where there is no provisicm for exkynditure of capital are classified as permanent end¢)wmenL In 2021 the tru5tee5 passed a re501ution under s104 Charitie5 Act 201 I co adopt Total Return Accounting a5 perniitted by the Diocesan Stipends Measure (Amended) 2016.. For further detail see note 26. Page 43

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 PRINCIPAL ACCOUNTING POLICIES {CONTINUED) "Special trusts" {as defined by the Charities Act 2011) and any other trusts where (he company accs as trustee and controls the management and use of the funds. are included in the company's own financial statsments as charity brnnches. Trusts where the CDBF acts merely as custodian trustee with no control over the managemen¢ of the funds are not included in the nancial statements but are summarised in the Tro￿ to the financial s¢atements. (h) Capital expenditure on Voluntary Aided schools ContribJtions to capitsl expenditure from Department for Education and schLY)I governors are not recognised in the Staoment of Financial Acti¥itie& Detii15 of the turnover related to this activity are included in note 24. The CDBF eontributes to the improvemen( extension and building of schools not under its control by making grants to the school governors concerned. and these are shown as sud) in the StaM￿¢ of Financial Ac(ivrties. The CDBF does not recognise the value of the company's reversionary interest in the 3$sets of c105ed schools until the ultimate proceeds of disposal have been received. (i) ludgements and est5mates In the application of the accounting policies. the Trus￿$ are requlred to make judgement& estimates and assumptions about the fdrrying value of assets and liabilities that are not readily apparent from other sources. The esiimatss and underlying assumpot)ns are based on historica5 experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estymates and underlying assumptions are continualty eydluated. Revisions to accounting es¢imates are recwised in the period in which the estimate is re￿sed. SrgrnfKantiudgements i) Valuation of Freehold properties and parx)nage houses- All freehold properues and parsonage house5. including investment properues. but excluding those subjett to Ydlue linked loans are revalued to their fair Wdlue annually using valua¢ions provided by external professionals. Properties subject to Wdlue linked loans are revalued each year ac the fair Value based on the index linked current valuation basis. ii) Valuation of liakn'lities arising from the charity's obligation to meet deficit reduthon payments for its multi-employer defined benefit pension scheme- These liabilities are reyalued at eath year end using discount ra￿ which are reassessed annual￿. iii) Residual value of Freehold properties - The Trustees consider that the residual value of freehold properties Is sufficiently high that depreciation would not be wratrrial. sour￿ of e5timution uncertynty In the view of the Trustees there are no sources of estimation uncertainty affecting assets or liabilities ar the balance sheet da￿ thac are likely to result in a matrrial adjustment to their carying amounts in the next finaneial year.

The Chelmsford Di0(￿an Board of Finance Notes to the financial statements For the year ended 31 December 2022 INCOME FROM DONATIONS Parlsh Contrlbutlons Unrestricted funds Restricted Endowment Tot1 Totol General Designated 2022 2022 Funds Funds Fund5 Fvnds 2022 2022 2022 2021 £y)00 <￿00 rooo t￿00 Parish share assessment lor the year Credit for fees and drAcounts 15M65 15.885 14868 (738) 593) Shortfall in contribution5 (1.208) (2,208) Payments in excess of assessment rrear5 for Drevi0115 years (3) 13,675 (3) 13.675 11544 All partsh contrlbutlorts In 2021 re unrèstrirttd Other Don&llons Unrestrtct•d filnds Restrkted Endowm•nt General Designated Fund5 Fund5 1022 2022 Total Total Funds 2022 2022 2022 2021 £YIOD £￿00 00 Donatlons 38 102 140 ios Mink%try &I￿ort fvThJin8 &M#inabiliiy ￿ndIng Benefact Trurt 1,827 500 1,817 500 1.997 1.000 286 295 295 Church Phming Tralnlng for Mlnlstry City Chwches hjnd straw￿ capac￿ Fund Strnte8￿ Ministry Other Grant5 1.135 539 1.135 531 1.076 890 1.590 133 189 189 100 14 67 76 129 2,432 295 3,030 5.757 7.076 Tgtal donations 16,107 295 3,030 19,431 20.620 In 2021, £3,358,000 ol other donatiom we unr¢s¢ri¢t¢d •nd £3.71&OC(I w•$ r¢stri¢ted Page 45

Th• Chelmsford Dioc•san Board of Financ• Note5 to the financial statements For the year ended 31 December 2022 INCOME FROM CHARITABLE ACTIVITIES Parlsh ContrlbutloThs Unrestrlcted funds Restri¢t¢d Erldowment General De5i8nated Funds Funds 202Z ZQ22 1022 2022 'ooo £'ooo £'ooo £'ooo Total Toiol Funds 2122 £'ooo Funds 2021 Ststutory fees chaplkincy income Printing and bookshop m￿c￿lane￿ISs Income 835 835 750 25S 2SS 312 150 D￿ceS2￿ Retreat House 309 30• 1.401 1.401 1.276 rotd in 2021 95 1276 INCOME FROM INVESTMENTS Unre5trlcted fund5 Re5tr1cted Endowment Total Total General Des18nated 2022 2022 £'ooo É'ooo Funds Funds Funds ds zozz £'ooo 202Z £'ooo 20Z2 £'oo• 2021 fooo Di¥idends 204 1,034 1,244 1.026 InterESt R￿t 404 494 107 1,438 1,455 1.523 Totcl in 2021 19 169 l J29 1.523 OTHER INCOME Unrestricted fund$ ReMri¢ted Endowment Totol General De5i8nated 2021 2022 Fund5 2022 F￿ndS 2022 Funds 2022 Funds 2021 £'oDo 'ooo £'ooo 'oo• 'ooo G4ns on dkposal of 355ets 16 490 526 701 ié 490 2• 524 701 Page 46

Th• Chèlmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 FUND RAISING COSTS Unretricted funds Ratrittsd Endowment G•Mral Denatod Funds 2022 2022 <'ooo Total Funds Fund5 2022 <'ooo 2022 2022 £'ooo 2021 Investsment managem￿t costs 27 291 230 Totol in 2021 26 204 230 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Unrestricted funds R¢stricted Endowment General Desi8natsd Fund5 Funds 2022 2022 2022 2022 £'ooo Total Funds 2022 É'ooo Resourcing minis¢ry and mission Grant Funding of aCtiV￿leS Support Costs Expenditure on Diticesan Retreat House Expenditure on Educatic Los$ on dispos￿ of asse¢s 16.502 1,299 1,547 285 289 2.458 19,249 1.493 1,949 77 357 215 310 525 302 19.848 713 &42 23.849 Unrestricted fvnds Re5trirted EndohVn￿nt C¢neral Desgnated Funds Fund5 Totol Funds 2021 2021 2021 £000 2021 fooo 2021 £'ooo Resourcing minlsty cndrnlsslon Gront Fundfng of athlrtes 14.930 1509 1.994 190 672 2.509 37 149 18.260 1.546 2.134 190 18 122 Dioce5t7n Retreot House ndi￿re on £￿C0￿.￿n 95 407 502 Lg5s on drsw of 05sers 19 19 18,718 709 3.075 149 22.651 Page 47

The Chelrnsford Diocesan Board of Financ• Notes to the financial statements For the year ended 31 December 2022 ANALYSIS OF GRANTS Gr4nt8 Grntst• Individu￿$ InstitwtiOIIS T•f•l Funds FLYth 2022 L'ooo 2022 £'ooo 1012 2021 £000 GMt5 rroje 230 1.493 1.546 rLiwI in 2021 1.541 lJ46 R¢cott¢llb•¢i•rt of 8rthts pybl 2022 2021 Éwo Accrued at I lanu¥y Gr￿ts piyable for the year Grants pald durfngthe ye¥ Total S46 630 1546 (1.6301 546 1,493 (1,035) Pyable sfollow# less than l year $46 Bylund type Ihdividuali InstithtiOlb5 'ooo 201Z 2021 eooo Frnm unratrkted lundsfor NatIOn￿ ChU￿h rryon4bllkles Cc•trbuOoTrs toArchbtshop5' Clxncl 1200 From vnrestrltted funds PCC fea51bllty swdy Churchts Tcythw oryL%aUons ID¢¢rfalth wor￿ng Other hnsrkurbon￿ wants OrdIn￿d5 7 Trlnlng Clew fortr￿n¥ (io) (45) i• (45) 20 212 212 208 37 To¢llrorn unr94tr1rt•d funds 74 230 1.199 ijio Trtal frrjm do48nt•J lyn PCCS ￿$sIon prgects. 77 From restrittd funds Erse35 rn1551￿ projects RdugEE WJPPQrt PCC5 fr)r rrMs$1￿ pfoiECt5 Other LOB Funds 26 14 Tot￿ Ir•m rèstrict￿ funds 28 36 Totsl 230 1,263 1,493 1.541

The Chelmsford Diocesan Board of Financ• Notes to the financial statements For the year ¢nd¢d 31 December 2022 ALLOCATION OF SUPPORT COSTS 2022 £'ooo 2021 eooo Resourcing ministry and miss Educatlon 1,767 182 1.942 192 1,949 2.134 10. NET INCOME Th151% stated after char8in8 2022 2021 eoo £'ooo Audltors. raNnention Audit F&s 27 Other Fee5 Operathg lease costs In the year Depreciation charge Interest pald 12 168 57 92 93 393 166 Page 49

The Ch¢lmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 I I. STAFF COSTS 2022 É'ooo 2021 Staff costs were as follows: £000 Wages and saknes Nation￿ Insurante contrlbution5 2.061 197 289 2.547 Pensi)ri costs (note 21 > 2,485 The average nuwrijer oi persons empbyd by the coryany duringthe year was as IolkTr￿". 2022 2021 No. Support for parish rritnistry Diocesan Retreat House Secretarie5 to Archdeacons 73 77 10 89 94 The average monthly ofeTTployees durlngthe year expressed a5 full twne equlv￿ents was as folknY5 (including casual and part-tkn staff): 2022 2021 No. Support for parlsh rrini5try Diocew Retreat H¢yJ5e Secretarie5 to Archdeacons 60 07 68 75 The nurrbw of Pa￿ employees was: 2022 2021 In the band £60.001- £70.000 In the band £70,001- £80.000 In the b￿d £80001- £90.000 During the year the charity made erylwnnt rrrination payrrnt5 todfing £35.40012021.. £I6,oc￿l Py50

The Chelmsford D•oce53n Board of Finan¢¢ Noees to the financial statements For the year ended 31 December 2022 I I. STAFF COSTS (Continued) Remvneration ofkey mana8ement personnel Key rnanagement personnel are deemed to be those havinz authortty and responsibilty, delezatrd to them by the Trus￿e for planning. direrting and controlling the activities of the diocese. Duriy 2022 thy wert.. Chief Executive & Dioc•5an Se(rntary Mtchaela Southwotxh D5r•ctor of Communkatlons & Medla Thomas Geldafd Head of Proporty Dlroctor of Education Alex Reeve The Revd Timothy Elbourn¢ The Revd Robert Merchant t¢ 31ffj11221 Ilrom 1102122 tty 31101123) Ilrom IIOY231 (from 07106121 to 131051221 (from 6103n31 It¢ 311031221 Director of EducatioTr Dirertor ofEducation Carrie Pr¢or Interlm Dlrector of Flnance Ernwna Buller Director of Finance Pa￿1 Setlerfie Head of Flnance & Company Secretary Margafftt Essery O•an of Mi5540n, Ministry & Eductlon The Kevd Robert Merchant Hgad of Sen7lco DelhTery Nathan Whi¢eh¢ad Head ofSaf•gurdlThz HR Manager Programme Manager General Manager Retreat House Pleshe Graham Dowling Amarnda Goh Ra¢h¢l Ttywns Dawn Weddell Ifrorn 30105n2) RenumeratioTh, ￿nSionS and expenses for these employee$ Mo￿￿ed to £70QCiIO12021.. C667.CW) Cl•rgy Sti1gnd5 The CDBF is responsible for fundi￿￿ vla the Church Commissioner¥ the Stipends of li¢¢ns¢d stipendiary clergy in the thorese, other than b￿hopS and cathedral staff. The CDBF Is also responsible for the provision of housing lor stipendiary cler8y in th2 diocese including the suffrardn bishops but excluding the diocesan bishop and (athedrdl stsft. 2Q22 2021 £￿00 Stipends Natlonal Insurdhet ttsntribution 4327 Q544 Pension ro5ts- current year - def￿1t reduction 1491 310 3.096 561 11.838 12.912 The sopends of the Dlocesan &shop and three &rffrayn &$hopi are lunded by the Church Commissioners and are in the raDge £38,050- £46.640p.a. {2021.. £37,670. £46,180p-a.l- The arnnual rate of stipend. lunded by the CD8F. paid to Archdeacons 2022 Wa5 ith the range £37,000- £37,37012021.. £37,OCN) p.a.l. Other t￿llY viho were Trustees were paid in the range of £22.410- £2&232 p.a. (2021.. £27.410 p.a.l. The CDBF provldes houslng for the three Suffragan Bishops, the Ar¢hd¢acons and the clergy who are Trustee5. The Church Cornmissloners provide housing for the Dlocesn Bishop. No TrU$￿t received remuneration lor seryices as Trustee. The Trumes who receryed travelling aThd out of pocket expenses umbtred was £0 l<)r 10 tru$tees12021.. £0 for 12 Trustees) in respect ol General Synod dutyes. and other duties as Tru5tse5. 10 tnJ$tres received £14.450 for out ol pocket expenses their nomul hne of du(y *$ arthdeaton or membtr Ol tlèryy. Page 51

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 12. TANGIBLE FIXED ASSETS Freehold Offlce Other Flxd propertiès Egulpment 2022 2022 Totsl 2011 2022 c'Tr)o £'ooo £'ooo Cort or valuation At I january 2022 Addityons 288,832 589 913 833 290,578 046 (1,690) 24.641 (5.721) 304454 57 {98Q) 24,641 {5,721) 307.361 (687) (23) R￿￿UatiOft surplus Transfer toassets hekl Icr 5Ie At 31 Decerrfjer 2022 283 810 D¢prn¢latlon At I I￿uary 2022 Charye for the year wn disposals At 31 DetembEr 2022 789 264 33 1,053 92 59 (680) {7) 289 t695) 45Q Nèt bOok¥￿e At 31 D￿errkner 2022 307,361 284832 S21 At 31 DeceFrser 2021 569 219,525 V thefreehokl propwts had not been included at TrAluathtih they wouk4 ho￿ bqen includgd under the his¢oric cost eon¥etton as lelltswr. 2022 2021 £000 Colt 94219 98394 The knd and buddin• were rvalu¢d ￿ 31 t>e¢enknr 2022 by Strutt & Parker LLP. Chartwed Sutvwor$ on at) open m¥kEt exi5tin&use b&si5. Page 52

The Chelmsford Diocesan Board of Finance Notes to the financlal statements For the year ended 31 December 2022 12. TANGIBLE FIXED ASSETS (continued) R•valuatlons Two of the equity103ns (note 181 are for the acquision of freehokl propertles included 3bove. The repaym2nt terrrs are such that the amount repayab￿ i quantfied as a pertethwt of the sa￿$ prt<eed$. According￿. rf the pr¢)perty is revalued the •ssotied loan rrAJ5t ￿$0 be rÈststed. The anaty$& of net tyn$ re¥aluatl¢)ns olfred xsets and Ic4ns Is ￿ folknw$: 2022 2021 P2valuation of fLKed assets 24,641 271 23.505 Revaluation ol 455ets heh4 fcf sale P3valuation of equity bans Nec gain per Sttten%nt of RnanCTr￿ A(tiYit￿5 24.912 23JOS Th• analysi5 of a55•ts h•ld for sal• 1022 2021 £Ot &8laTrce bf I january 2022 Proceeds from the sak OF held ￿ rradingassets Lo55e¥ on d[sP05￿ 01 held for tradingassets Addityons to be held lor 531e Re¥￿￿a￿ON of htk4 lor salÈ ￿￿et& 7,26S {2,728) (212) 210 3,715 .664) (51) Hekl for sale for 2023 5.721 10,527 7,265 7,265 8thnce cf 310ecerTlJer 2022 Proceedsfrom th• sale of tanglble fixod assets 2022 2021 foc Net bockvalue offreehc4d propery f￿ed assets d￿posed at l January 2022 G￿￿5 and b5ses on dispos￿ of a%sets Proceed5 frorn the 5 dlrtthold property tanyblE r￿ed a55ei¥ (995) 99 (896) (4.550) 1733) {5.2831 Durin¥the y￿ office equipment and otherfrxed assets a net bc4)k¥￿￿e of £nll, cost at I january 2022 of £0244m &Thd deprec￿￿)n at I january 2022 of £0144m were d￿p¢￿ed for £nil prcKeeds. Page 53

The Chelm51ord Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2fy22 13. FIXED ASSET INVESTMENTS Listed Unlisted Inv•5tr•nt Inv•stments Investments Property 2022 Total Total 2022 2022 2022 2021 £￿00 £woo £No rooo 1000 At I january 2022 AddllJorL8 24,624 2,528 (3,160) (2,258) 21,734 29,692 7,1)00 10.061 04.377 53.318 9,5Zfj (3,160) {5,741) 6S.004 IQ151 Dtsposals KevalLgtK)n 105S (o) (19) 10.031 15.CW3) 5.911 64.377 (3,454) 33.238 ma￿er Value at 31 December 2022 Historée val￿ at 31 December 2022 19,284 25.372 4.113 3&625 51.(185 In¥•$tm•nts I￿ld byfund Unr¢strlrt¢d fvrtd$ R$tyict•d EndL)wm•nt Total G•neral Des1￿ated 2022 21122 Funds Fund5 Fund5 2022 2012 2022 At 31 December 2022 Éwoo £￿00 £￿00 £No Listed ￿VestMentS 3,407 4,425 18.327 21013 10.032 21,734 J3,238 10.032 Unlisted Imiestments Inve51ment propery Tottl 7032 57,171 65,004 Ihwe5trKted ￿dF Gettrd De5rdnrted 2021 R¢tyi¢ted Fund5 2021 2021 2021 2021 At 31 Decemiw 2020 4.186 5613 2Q436 24.080 10.060 54.578 24.624 29.693 io.oéo 64.377 IrMe5)entp￿eIty 9.799 The a￿ty515 of netDins pn iiYestyn¢nts ts a$ follow 2021 2021 eali5ed gai U￿e￿Il$ed Ilossl on revaluatknn Net gaIr￿ per Ststernent of finan¢t*l Attiviue$ 460 B26) 5,911 (5,741) (5.281) Pag• 54

The Chelmsford Dioc•san Board of Financè Note5 to the financial 5tatsments For the year ended 31 December 2022 14. DEBTORS Total Totrtl 2022 2021 Dut ther more than one year £'ooo 'ooo Loans to parishes Equ￿ kjans Other loans 248 309 29 29 278 341 Total Totol 2021 2021 Due wlthln one year 'ooo £voo P¥rsh Share 3S8 401 Charitable acrfvw debror$ 1.495 628 1219 Other kjans and debtors 192 Grant incorne accrued 406 444 Prepayments and accrued income 885 741 3.772 2.997 Pale 55

The Chelmsft)rd Diocesan Board of Finance Notes to the financial statement5 For the year ended 31 December 2022 15. CREDITORS: Amounts falling due within one year Total 2022 ro 2021 £'ooo £000 Bank loans and ￿p￿raft$ (note 161 Trade creditors O¢ner faxaw and $￿Ur1¢Y C105ed Schw&- an￿uThts held pending deternin￿on Devofved F￿￿j1& Captul SchcoLs c￿di￿on Allocaions Pension contriby¢ioTr$ {n*xe 21) Orh&- creditors Accru￿5 and deferred inco 9.009 369 77 1,083 569 1268 261 1.918 571 2.043 570 1,229 194 968 332 540 16.403 Grants ￿cr￿ed (note 8) 739 16. CREDITORS: Amounts falling due after more than one year Total 2022 Totdl 2021 1000 B3Trk k)ans Equity loan 8,085 874 874 4959 874 National WestM1n￿r Bank PIC has made available morrwe facilities to fund the purchase of houses for curates. The total loan balan￿ stands at £8.085m P021: £9.009m) at the year end. In May 2022 a facility of £8.085m Nfds agreed. This facility, wthich is repayable in fijll at the end of I S years. is secured on certain freehold properties. Equity loans are made available by the Church Commissioners to assist with provision of housing for curntes and other miniS￿r$. The terms are tha¢ the loan is repayable rf the propery is sold or ceases to be used for the wrpose under which the loan was grdnted. The amoun( repayable to the Church Commissioners is the proportion of the current value of the property that the loan bore to the on￿'nal purchase cox. Mott loans incurred interest initially at 3% per annum but the rate thereaftsr varies with intlation.. the average interest rdte on these loans is 6%. Page 56

The Chelmsford Diocesan Board of Financ• Notes to the financial statements For the year ended 31 December 2022 17. SUMMARY OF FUNDS MOVEMENTS STATEMENT OF FUNDS- CURRENT YEAR Balance at Transfers Gain alance at I l•nuary 2022 ¢om ExpndibJr• 2022 inl(out) 2022 31 December 2022 2022 1022 £wo D•sbgnathd funds House$ 14661 11.06T) 3.124 29,698 427 BenefartTrw¢ 324 29S Missim Opportutitte¥ Des&naied Sdpend Capiul ￿1nd Cl¢>sed Churthe5 3.612 3.612 490 1441 110) 24436 1550 34,178 Gener41 fvnd$ General fund5 4.645 18266 119.848) 70 197 Total Unre5triCted Fund5 33,081 19,057 (20.5611 5,614 3,184 40.375 Ehdowm•nt Funds StipENd5 Fun¢J Ca￿131 Par50nage Houses Pernianen¢ EndowTreTrt I2￿) 1301 1&1551 83,3S6 239,918 221.147 3.479 313,094 19.138 97 (￿1 17.712 1,438 15.6141 32&320 Restricted Fund¥ Oloce5an Board ol E¢JLKdo 433B 340 13321 (879) 5,467 I￿21 Land￿ O¥erthe B￿der 43 Cw Church Fund LentApFeal RefugeeApF¥I Churrh Handng prolert ResrnmrlnK Trdinlng for Miniswy Str4reOc CapacSty MlTr15tyy Futhd HI$[0￿C *land IM2 19011 1.641 45 45 67 167) 14761 1891 189 538 IQ275 3257 13.2691 {1.0351 9,228 Ttxal Funds 35&450 23,752 P4,140 19.861 375.923 Page 57

The Chelmsford Diocesan Board of Finance Notes to the financlal statements For the year ended 31 December 2022 17. SUMMARY OF FUNDS MOVEMENTS (continued) STATEMENT OF FUNDS- PRIOR YEAR Tr￿r$ Wlou¥ 2021 Gothsl 31 Decem￿1 2021 2021 2021 2021 2021 Des1￿￿tel funds Hou 25.197 476 {172) (4381 3.070 2alOI 324 8e￿ratt Trwt Strotegt Cthrqe 286 J8 104 {17) 177) 10 DKeson Réue£t Howe Refwtèhmr a05edChwde5 25.8é0 292 09) 174 3.070 18.436 Gerwol fvnds 2.178 14545 1147181 1585 55 4.645 24038 18.837 {19,4271 1508 3.125 33,Q81 EdowmértFurtds FL￿d￿￿oI 81503 2Ql820 IOS6 28¢379 1.342 1204) 1149) (13341 7.161 17.795 435 221,147 3.479 313,094 95 1107) R4411 1118 1353) 25.390 Ilexrtrted Fvndi 5.990 67 247 1427) 522 6.338 DkKeson Retreot Hc (67) Lothow the knrr 41 153 1.980 1.652 1.590 {598) o) Lentwe 39 45 7) 1.076 (1.049) 67 Trthfty fv Sfrotegk C¢ Or olt5CF PfoJea Lefyl Youjy Peop (622) (96) 45 (45) (74) 5) 74 25 4881 3,887 (67) 675 10.275 TO￿ Fuftts 325.298 24.843 Ql881J 29,190 356,450 Page 58

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 17. SUMMARY OF FUNDS MOVEMENTS (continued) SUMMARY OF FUNDS- CURRENT YEAR B￿ance at Tranrfers G￿n51 Blance at (losses} 31 Dt¢¢mb 2022 20 É'oo l January 2022 £'ooo 28.436 4,64S 33,081 In¢om• Expendltyr¢ 2022 inl<ou¢) 2022 'ooo Ion D<<yed funds General (unds 791 (7131 119.8481 (20.S611 2,550 3,e64 5h14 34,178 6,197 40,375 18.266 19.057 70 3,184 Endt?Wry￿t funds 313,094 1027S 1,438 3.2S7 15h141 17,712 11,0351 326,320 9,228 Restr￿d fijnds 13.2691 356.450 23.752 (24.1401 101 19,861 375.923 SUMMAR Y OF FUNDS- PRIOR YEAR JIlT￿t Jt Tronsftrs inl(out) 2021 &7in 8¢thce 01 31 December I JGftUCry 2021 Inccfft en¢frture lknesl 2021 2021 2021 fooo 2021 Des￿t￿èd fvnds Generol funds 25.860 2,178 28.C138 292 1709) {18.718) (19,427) 177) 2,585 2.508 3.070 55 28,436 4.645 33,081 18,545 18.837 3,125 EndthYrTheDt fvrOs Restiicted fvnds 288.379 8.881 1118 3.887 1353) 13,101) 12.441) (67) 25.390 675 313.094 10.275 325.298 24.843 122.881) 29.190 350.450 ANALYSIS OF TRANSFERS BETWEEN FUNDS- CURRENT YEAR Unrestricted funds Restrirted Endownnt Gèneral Designat 2022 Funds Funds 2022 2022 2022 £'ooo 3218 £'o £'ooo £'ooo TO￿ return ts￿$1er to genu￿ funds to supplement revenue {3.2181 Correth¢)n to CW Houslng Insurance Property Transfer., Board to Endowment Property Transfer,. End¢)wment to Board Gener￿ to Designated Ycuth Work 1149) 149 17401 3.285 740 (3,2851 {5) 3,064 2,550 15,614} Pagè $9

The Chelmsford Diocejan Board of FITr￿(e Notes to the financial statements For the year ended 31 December 2022 17. SUMMARY OF FUNDS MOVEMENTS (continued) ANALYSIS OF TRANSFERS BETWEEN FUNDS- PRIOR YEAR ih¥e5triaed RestrKted Ge￿roj De5yftthed Fun& 2021 2021 2021 2021 From mtswn to yneral f£md From restrthd fimd to generd fvnd Toidreth tr¢rfer to general fvrnts to 5wkrneth reYeTr From generL4 ￿ to 5Li>efftJ5 e￿ellI for reaKLi?n of penwn deftcri 77 (77) 67 (67) 2.995 {554) (2.9951 554 2.585 1771 {67) 11441) Houses Fund Benefact Trnst Thi5 fund represents rnonie5 allocated to clery housin& This fund represents ¥rants received from Benefrdct Trust and is to be distributed at t1 discretion ofthe Bishop d ￿helM5fOrd. IF￿10￿51Y known as Allchurche5 Trust}. Mission opport￿ltieS Fund This fund represa)ts monies all¢xated for new mission initiatives. Designated Stipend Capital Thi5 will then operate in the same manner as the Stipends Endowment Fwid. The funds are invested with aur Inwtmert Managers and accountèj for on a to¢al retyrn basi5. This fund represents proceeds from the sale of closed churches which have been set aside ¢0 cover fvture costs ari￿n8 on other churches in the diocese dosed for public worship. Clos•d Churche5 General Fund Thi$ fund is ayailable for any purposè within the objects of th• CDBF. Stipends Fund Capltal This fund is govemed by the Di¢xesan Stipend5 Measure 1953. incomè of the fund can only be used for clergy 5tipend5 This fund represents the alue of all che benefice houses (p2rsony) in thè Diocese. Thè Income of these funds Is a￿lable to be Sp￿¢ within the General Funds. Parwnag¢ Hou Permanert ¢ndowmwts Page 60

The Chelm5forql Diocesan Board of Finance Notes to the financial statements For the year ended 31 Decèmber 2022 17. SUMMARY OF FUNDS MOVEMENTS (continued) Rertrlcted Fund&. Dioces4Th 3oard of Education -, he )iocesan Board of Educadon Is an unincorporaTrd body ￿0￿$t$lutÈd tn accordance with the Diocesan Bo¥ds of EdU¢at1￿ Measure 1991 INo.2}. Thi5 Indudes the pts¢led sale proceeds of closed churth schools and the unspent balance ol the grant received from the Hockerill Education￿ Foundation. The Diocesan Retreat House at Pleshey is operated as a separate actiwty. Undèr the rernis of the trusc for the Retreat House, all irtome must be expended within che centre and, therefore, this is treatrd as a restricted find within CDBF'S accounts. The Council 15 inw¢uod to adrnini5ter SFecific fund5 for the benefit of parishes wi¢hin five specified dwdneries ol the Diocese. This fund is available to parishes within five speclfied deaneries ol the diocese. for the purposes of supporting the adyancement of relig￿n. repair of churches, and support of stipends. This fund represents incorne from the Bishop's L￿t Appeal. This fund represents incorre from the Bishop's Refugee Appeal. This fund represents grants received from the Chureh Commlssioners tovrtrds the cost of the onying development of resource churchès and a fier￿0rk of new d)urch cownmunities in S strdtwc mission priority area5. This fund represents grants received from the Church Commissioners to aid the Oiocese ¢0 transrtion to new lunding arrangements This fund represents grants recewed from the Arthbishops. Council to assist In the funding of trrining clergy. This lund represents grants rec*ved from the Archbishops, Council to assist in the funding Diocesan staff Supporring Parish Ministry and Worshipping Communities. Funding for a Historic Buildin85 Team. To help better care and promote our historic buildings and help PCC'S develop 5trateyes for long-term cire, M￿ntenanC￿ and 5UStaFnability of their asse DiqKe5an Retreat House London Ov•r th• Bordér City Churches Fund Lent Appeal Refugee Appoal Church Planting Project Restructuring (tran$ltion) Funding Trainin8 for Ministry Strate8ic Capacity Higtoric En8land Page 61

Th¢ Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 18. ANALYSIS OF NET ASSETS BEfwEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestricted funds Restricted Endowment Fund$ Funds 2022 2022 £'ooo Totsl Fund$ 2022 £'ooo Gen8Tal D•si8rtattd 2012 2022 L'ooo £'o•o £'fjoo T￿bble ILxgJ 255ets Fixed asset uiyestrmnts 2.197 39.636 430 7,832 165.741 57.172 5J28 308,004 65.004 11.527 278 7,808 {6.739) {8,959) Assffs held for $￿e 916 4,283 Debtors due after nKJre than one year Cur."ent assets Creditors due wlthln ofiè year Creditws due in rTK)re than one ye¥ Oekned benef pwston scheme ltsbilths 278 5,125 12.1821 (1371 19191 (o) {8.8221 5301 14,535> (1.8991 {211 &197 34178 9.228 326.320 375.923 ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unresrricted fvnds De$l￿OIed 2021 £000 Rellrirted Funds EndovKneni Tot Jn& 2021 eooo 2021 £000 2021 eooo 2021 £000 Ttmgtble fixed o&s2ts xed ¢Tssef invesonents Assets heldfor Sale Debttjrs due ofter mre thon one yedr Current QS5ets rJe¢tyJrs due within one year Cret*tO￿ due in more thon one ye Defined benefft pe￿0￿ scheme Jiobifirie5 2.733 36.727 365 249.699 54578 3.045 289.525 64.377 7.265 341 12.199 110.403) 1874) 21 356.450 9.799 4.220 341 3J90 {1.682J (137} P.765) (9,009) (737) 5.221 (5.109) 6J54 {603) 21 313,094 4.64S 28.436 10.275 19. CONTINGEKf LIABILITIES There were no cortingent liabilities at the balance sheet date. 20. CAPITAL COMMITMENTS There is a capital commitinent related to the proposed demolition of St Peter's Church, Birch. At the balance sheet date there vas a comFllitment of £92k to￿ardS the feasibility work related to the proposed demolition (£19k was expended in 2022). Until the feasibiliry V￿rk is finalised it is not possible to estirna￿ the full costs of demolitiClI. however. It Is expetted to be less than £1 m. Page 62

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 21. PENSIONS Chelmsford DBF participatts in four pension schemes: Church of England Fund.ed Pensions Scheme Church Workers Pension Fund DBS Church Worker5 Pension Fund Pension Builder Teachers Pension Scheme The Church of England Funded Pension5 Scheme (CEFPS) and the Church Workers Pension Fund ICIPIPry are multi-ermployer lar4 Trn stsnding defir.ed benefit pension s￿￿eMes for whic14 the =DBF is una￿e to identfy its share of the undertying assets and liabilities as each employer is exposed to actuarial risks wociated wtth the current and former employees of other entitie5 participating in the scheme. For multi-employer schemes where this is the case. paragrdph 28.1 l of FRS102 requires the CDBF to account for pension costs on the basis of contributions actually PaYa￿e to the scheme in the year and, where contributions are affecced by a surplus or deficit in the 5chemq to disclose information about the surplus or deficit and the implications of the surplus or deficit for the CDBF. A valuation of each scheme is fdrried out On￿ every three years. Church of England Funded Pensions Scheme (CEFPS) - the Clergy defined benefit pen5i0n scheme Chelmsford DBF participaw in the Church of England Flsnded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme 15 administered by the Church of England Pensions Board, which holds the assets of the schemes separntely from those of the Responsible Bodies. Each participating Responsible Body in the scheme ￿y$ contributions at a common contribution rdte applied to pensionable stipend5. The scheme is eonsidered to be a multi employer scheme ts described in Settion 28 of FRS 102. This means it is not possible to attribute the Scheme's assets and liabilitie5 to the specific Responsible Body Ind this means that contributions are aCcc￿nted for as ifthe Scheme Y￿re a defined cortribution scheme. The pensions costs charged to the SOFA in the year are contribution5 payable tOWdrds benef￿ and expenses accrued in that year (2021. £1408m. 2021: £2.51 Sm), plus the figures highlighted in the table below as being recognised in the SOFA gNing a total eharge of £2.178m for 2022 (2021: charge of £1522m). A valuation of the Scheme is carried ouc once every three years. The most recent Scheme valuation completed carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on a55ets of £2,720m and a funding tsrget of £2.160m, assessed using the following assumptions., An average discount rate of 2.7% p.a.. RPI inflation of 3.6% pa. (and pension increases consis¢ent y￿th this),. CPIH infiation in line with RH less 0.8% pre 2030 movirb8 to RPI no adjustment from 2030 onwards; Increase in pensionable stipends in line with CPIH; Mortality in accordan￿ with 90% of the $3NA VL tables, Trmth allo￿anCe for imprs)vements in mortality rates in line with the CM12020 extended model with a long term annual rnte of improvement of l a smoothing parameter of 7. and an initial addtcion to mortality improvements of 05% pa and an alloTrKdnce for 2020 data of 0% {i.e. w2020 - 0%). Page 63

The Chelrnsford Diocesan B¢)ard of Finance Notes to the financial statements For the year ended 31 December 2022 21. PENSIONS (continued) Followng the 31 December 2018 valuation. a recovery plan was PLtt in place untll 31 December 2022 and the deficit recovery contributions of 11.9% payable (as a percenttge of pensionable stipends) b￿een January 2018 and December 2020. followed by contributions of 7.1% tEty4een January 2021 and December 2022. An interim redurtion to deficit contributions eo 3.2Y. of pensionable stypends vrds made vAth effect from l April 2022. Following finallsation of the 31 December 2021 valuation, deficit contributions ceased with effect from l January 2023. Sin￿ the Scheme was in surplus. For senior office holders. pensionable stiwds are adjusted in the calculations by a multiple, as set out in the Schen)e's rules. Section 28.1 IA of FRS 102 requires a￿eed def￿1t reeovery payments to be recwised 25 a liabil￿. However. as there are no agreed deficit recovery payments from l January 2023 onwards. the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 15 Set out in the table klow. 2022 2021 £'ooo 1000 Baknce sheet Ilablw at l January DefKit contributh)n paid Interest cost Irecognised in SOFA) Remaining change to the baL￿ce sheet liabifity {reCo￿l$ed in SOFA) 540 {310) 1,094 15611 {230) B￿ance sheet liabilrty at 31 December 540 * Comprises change in agreed deficit recovery plan and change in discount rate and assumptsons between yearonds. Thi5 liability represents the present value of the defrcit tontributions agreed as at the accounting date and has been valued using the following assumprions set by reference to the durntion of the deficit recovery payments: December December December 2022 2021 2020 0.0% pa 02% pa 3.l%pa Ih%pa Dlscount ra nla Price infiat nla nla Increase to Pen$￿ab[e payr -1.5%pa The legal structure of the scheme is such that rf another Responsible Bcdy fai15, the CDBF could become responsible for F4ying a share of that Respxsible Body's pension liabilities. Church Workers Pension Fund (CWPF) - Lay WoA(ers Defined Benefits Scheme The CDBF formerly parllcipated in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is adminis￿red 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. The CWPF ha5 a seLtion known as the Defined Benefits Scheme. a deferred annuiw section known as Pension Builder Classic and a cash bolance section known as Pension Builder 2014 (see 5ettion C below). The Defined Benefits Scheme C'DBS") Section of the CWPF provides benefits for lay staff based on final pensionable salaries.

The Ch•lrnsford Dioc•gan Board of Finance Notes to the financial statements For the year ended 31 December 2022 The CDBF has not had any ac(iYe members in the DBS since March 2018. 21. PENSIONS (contlnued) Church Workers Pension Fund (CWPF) - Lay Worker5 Defined Benefits Scheme (continued) For funding purposes, the DBS Is dlvided Into su&pools In respect of each particlpaiing employer as well as a further su&pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks be￿￿n employers. including those relating w mortality and post-retirement investment returns. The division of the DBS into S￿￿P001S 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 che benefits are to be provided. From time to time. a notional premium is tf2nsferred 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 settion 28 of FRS 102. It is not pK)ssible to attribute the scheme's assets and liabilities to specific employers. sintt each employer, through the Life Risk 5eth"on, is exposed to attuarial risks associated with the current and former employees of other enticie5 participating in the DBS. This means that contribution5 are accounted for a5 if DBS were a defined contribution Scheme. The pensions costs charged to the SOFA during the year are coneributions payable ¢OVfdrds benefrts and expelses ayrued ir that year (2022.. £0. ?Q21: £0) plus the figures in ￿latiOn to the D8S deficit highlighted in the tsble below as being recognised in the SOF& gi￿ng a total charge of £0 for 2022 {2021'. £0}. If, following an actuarial valuation of the knfe Risk Pool, there 15 a surplus or deficit in the pool, further transfers may be made from the Life Risk Pcol to the employers. 5ub-pools or vice versa. The amounts to be tryan￿erred (and their allocatyon berffieen the sU￿pOOlS) will be settled by the Church of England Pensions Board on the advice of the Actuary. A valuarion of DBS is carried out once every three years. The most recently finalised valuation Yfds carried ol￿ as at 31 December 2019. In this valuation. the ￿fe Risk Section wa5 shown to be in deficit by £7.7m and £7.7m VAS notionally transferred from the employers. su&p¢)ols to the LrFe Risk Section. This increased the employer contribuuons that would otherwise have been payable. The overall deficit in DBS ￿a$ £I1.3m. The next actuarial Valuatic￿ 15 due at 31 December 2022. Following the 2019 valuation. the Employer entered into an agreement with the Church Workers Pension Fund to pay exFtnses of £9.900per year. 2022 2021 £'ooo looo &)lance sheet Irdbility at l January DefKit contribut￿n p&d Intsrest cos¢ {recwised in SOFA) R￿nIng change to the blance Sheet liability {recognised In SOFA) Balance sheet liability at 31 December * Comprises change in azreed deficit recovery plan and change in discount rdte and assumptions between year-ends. Page 65

The Chelmsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 This liability represent5 the present value of the deficit contribution5 agreed as at the accounting date and has been valued using the following assurytions set by reference to the duration of the deficit recovery paymènts.. D¢¢ÈmbÈr Dècembèr Detember 2022 2021 2020 Dlscount rnte 0.00% 0.00% 0.00% The legal structure of the Scheme 15 such that if another Responsible Body fail4 the CDBF could become responsible for paying a share of that Resp)nsible Body's pension liabilities. C. Church Workers Pension Fund (CWPF) - P4nsion Builder Classic and P¢n5ion Builder 2014 The CDBF participatrs in the Pension Builder Scheme section of Cl*VPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separatety from those of the Employer and the other participating employers. The CWPF has a section kn¢)wn as the Defined Benefits Scheme, a deferred annuity secuon known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. Pension Builder Scheme The Pension Builder Scheme of the CWPF is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are dassed as defined bendrt Schemes. Pension Builder Classic provides a pension. accumulated from contributions rAid and converted into a deferred annuiry during employment based on term5 ￿ and reviewed by the Church of England Pensions Board from time to tyme. Discretionary increases may also be added. depending on investrnent returns and other frdctors. Pension Builder 2014 15 a L3sh balance scheme thac provides a lump sum which members use to provide benefits at retiremenL Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retiremenL depending on investment returns and other fac¢ors. The accounL plus any knnuse5 declared is payable, unreduced. from age 65. There is no suwivision of assets betsyeen employers in each Section of the Pension Builder Schem& The Scheme is considered to be a multi-employer scheme as described in Seetion 28 of FRS 102. Thls means it is not possible to attribl￿ the Pension Builder kheme's assets arKI liabilitie5 to specific employers and that contributions are accountrd for as rfthe Scheme were a defined contribution scheme. The pension5 Costs charged to the SOFA in the year are contributions payable (2021. £292.(￿. 2021.. a80,000). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was rried out as at 31 December 2019. The next valuation Is due as at 31 December 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing as5umpuons used. At the most recent annual review, the Board chose to grant a discretionary bonu5 of 10. 1% following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 settion, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current me. The legal Structure of the scheme is such that if another employer fails, CDBF could become respon5iE4e for paying a share of that employer's pension liabilities. Page 66

The Chelmsford D6ocesan Board of Finance Notes to the financial statements For the year erbded 31 December 2022 Teachers, Pension Scheme ITPS) The TPS 15 an unfunded scheme and members Contribu￿ on a'pay as you go" basis- these contributions along vath those ￿￿de by employees are credttrd to the Exchequer. Reurement and other pension benefits are paid by public fvnds provided by Parliament. The CDBFf employer's pension ttists paid to the Trs in the year amountrd to £32,000 {2021 £30,IJXJ). A copy of the valuation report and supporting documentation is on the Teachers, Pensions website. Under the defir)itions Set cyjt in FRSI 02 the Trs is a multi employer scher￿. The CDBF has accounted for its contributions to the scheme as if ic were a defined contribution scheme. The employer contribution rate vos increased to 23.6% in August 2019 following the TPS 2016 valuation. Prior to August 2019 the employer contribution rate was 16.48 The summary of all the scheme5, liabilities at 31 De￿rnber i5- 2022 2021 £LYJO Anxbynts falling due within one year £'ooo Church of Engand Funded Pens)ns Schune -%urKv% Wo￿￿￿1 s Pensron5 Fund _ Church Workers Po)sions Fund - Pension Builder Classic and PB2014 226 561 35 Total 261 561 2022 2021 fOOQ Aniounts falling due after more than one year £'ooo Church of Eng￿d Funded Pensions Schemè Church Workers Pensions Fund DBS (21) pi) 22. OPERATING LEASE COMMITMENTS At 31 Detenber 2022 thetcl af future mwiirnum lease Pa￿￿nts under nonwcancdlable operating leasu was: 2022 2021 £'ooo Within l year Betwecn 2 &tyd S years After ffore than 5 years 95 22 75 T¢Xal 170 Pw67

The Chelrnsford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 23. RELATED PARTY TRANSACTIONS Apart from the trustee tfdnsactions disclosed in no￿ I I, there were no other related prty tran5attions in tne financial year. 24. CAPITAL EXPENDITURE ON VOLUNTARY AIDED SCHOOLS CDBF received funding on behalf of schools from the Department for Education totalling £1.817.(Yx) (2021: £1,771.0001 and from School governing bodies amounting to £185,00012021: £129,000) to finance building work These funds were then ucili5ed to pay for school building improvement works. Neither the income nor the expenditure are incluiied in these accoun 25. FUNDS HELD AS CUSTODIAN TRUSTEE CDBF acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parothial Church Councils (Powers) Measure 1956 and the Incumbents and Churchbydrdens (Trusts) Measure 1964 where the managing rnjstees are parochial church councils and others. Assets held in this vny are not awegated in these financial s¢atements as the CDBF does not eontrol them. 2022 £'ODO 2021 1000 CBF Church of En¥and Invest￿ftt Fund Income shares CBF Church of En8land Investment Fund accumulttp)n $hares CBF Church of Engand FLxed Interest SecuritEs Fund shares CBF Church of Ennd Glgbal Equity Incorfft Fund incorne sh¥¢$ CBF Church of England Property Fund shares COIF income and a¢eumul•tion sha 9.914 93 229 10.175 1.238 274 65 56 701 927 291 850 648 Other conwnon inyesunent lund holdiigs IM&G) Direct hotdirh85 in UK equitie5 CBF Church of Enoand Deposlt Fund 4,939 4.288 17.762 17,832 26. TOTAL RETURN ACCOUNTING From the l January 2021 the Chelmsford Diocesan Board of Finance adopted a total return approach to investments and propery with regard to the Stipend Capital Fund {SCF) the Pern)anent Endowment Fund (PEF) following consultation with the Diocesan legal advi50r5 and auditors and in accordance with their advice. The inttial base values for implementing total return were decemined at l January 2021 the SCF £60.51 I m and the PEF £1.678m. The unapplied total return brought fOr￿ard at the l January was £24587m for SCF and £1.71 Om for PEF a combined valued at £26.279m. 3.5% was quoted and agreed as the annual Per￿￿tage to transfer to the General fund to supplement revenue. The indexation of the base values is calculated using the National CPI index, in 2022 the CPI index used 10.5 The movements during the last calendar year in the value of the unapplied total return are set out in the table below. Page 68

Thè Chtlrnsford Diocesan Board of Firbance Note5 to the financial statements For the year ended 31 December 2022 26. TOTAL REfuRN ACCOUNTING (continued) rerurn acctyJnDTr¥wa5 5UPP(Yted by the Rnance Comnmttee on 3 November 2021. 3J%Yrt5 quced and ¥grd. Thetransf¥ LO funds Is h lkne the wed wlthdrdwal UthdÈrthet￿￿ reDJn) pdky. pend Capltsj fynd Unpplltd Trust for Total Perm•nen¢ Endowm•nt Unapplled Tryrt for Tot invertmqnt Rthrn T•tal To¢al ndowment erMloTnent Éiooo £JtyJo £PDOO Évooo .00 Ai at I 2021. Bev3Jue Dfthe p¥￿neTht endoWrn￿t Jnappld tffi,, rewrn To 63￿81 63.881 24587 88,468 1,769 1.769 24,587 24,587 63081 1,769 3,479 MoYmints Wb the yttr: Ad(ltional sle woceEd5 ofglebe ￿Thd slk G¥ns cn revauthon ofcl&Y h(￿Se$ GaIn￿(lO$Se$) on dsposal Of assets Investfflent returnL ￿￿￿endS rttelyal 30 2.525 Jo 2525 l.C¥J3 338 13003 (264) 230 P580} 521 I,￿3 338 13.8031 12641 230 (2,5801 98 Investynent return5: GJEbe rents Inyestmtnt rewrn.. and unrdL5ed k)sses 14091 14091 Inve5trnent ￿￿￿￿￿￿nt(0Sts Acvjth￿gaInS on penskn schwnes Transf¥ ofprapwty ro 8wd Transf¥ ofpropry ro Send Unlpplled tord rEvJm alocat￿l to kncorne In the ye3r Add indexarion Lrfblse c4endvwmEnt Net mrNema)ts In theye¥ 13.0961 6.7161 11 l M281 13.096 6.716 6.716 186 16191 14331 As 4¢ 31 DKember 2021. Basey￿ut Lrfthe Perrtwn￿t end(Twnnt Uty¥plled t{￿ retyJrn as at31 Dec￿rs￿ 2022 70,596 70596 12.759 83,356 1,955 1,955 1.091 3.046 12.759 12,759 70,596 1,955 Analyiii olWithdraw41 to Income To Gened Fund ls n￿e I8na￿sts oftmslers h￿ra￿ to thcoTh 3.096 3,096 122 Closing bncE 70596 12,759 83J56 1,955 3,046 Page 69

Thè Ch•lm5ford Diocesan Board of Finance Notes to the financial statements For the year ended 31 December 2022 27. ANALYSIS OF CHANGES IN NET DEBT Other Non- Cash Changes At 31 Dec 2022 At l Jan 2022 Cashflows £'ooo £'ooo É'ooo É'ooo Cash and cash •quival•nts Cash and ¢ash equ￿￿entS Cash equfvalents 9202 {5.166) 4,036 9.202 (5,1661 4036 6orrowln85 Debt due within e*e year Debt due after one year 19,009) (874) 9.009 18.085} 18.9591 {9B83) 924 18,959) Total (6811 14,242) {4.9231 28. POST BALANCE SHEET EVENTS On 31 March 2023. we sold the St Mark'5 College, Audley End, for £1,050.CO) which vfa5 held in Fixed Assets on the balan￿ sheet ar a wal￿ of £5,000. Page 70