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 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 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 erylwn*nt *rrrination payrr*nt5 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 & Educ*tlon The Kevd Robert Merchant Hgad of Sen7lco DelhTery Nathan Whi¢eh¢ad Head ofSaf•gu*rdlThz 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 &$hopi are lunded by the Church Commissioners and are in the raDge £38,050- £46.640p.a. {2021.. £37,670. £46,180p-a.l- The arnnual rate of stipend. lunded by the CD8F. paid to Archdeacons 2022 Wa5 ith the range £37,000- £37,37012021.. £37,OCN) p.a.l. Other t￿llY viho were Trustees were paid in the range of £22.410- £2&232 p.a. (2021.. £27.410 p.a.l. The CDBF provldes houslng for the three Suffragan Bishops, the Ar¢hd¢acons and the clergy who are Trustee5. The Church Cornmissloners provide housing for the Dloces*n Bishop. No TrU$￿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 Flx*d 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 DeceFr*ser 2021 569 219,525 V thefreehokl propwt*s had not been included at TrAluathtih they wouk4 ho￿ bqen includgd under the his¢oric cost eon¥e*tton 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 acquis*ion of freehokl propertles included 3bove. The repaym2nt terrrs are such that the amount repayab￿ i* quantfied as a pertethwt of the sa￿$ prtsed 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¢JLK*do 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 D*Keson 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 E*dowmértFurtds 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 knr*r 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 inlefftJ5 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 thetc*l 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 $hares CBF Church of Engand FLxed Interest SecuritEs Fund shares CBF Church of En*nd Glgbal Equity Incorfft Fund incorne sh¥¢$ CBF Church of England Property Fund shares COIF income and a¢eumul•tion sha 9.914 9*3 229 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 quc*ed and ¥gr*d. Thetransf¥ LO funds Is h lkne the wed wlthdrdwal UthdÈrthet￿￿ reDJn) pdky. pend Capltsj fynd Un*pplltd Trust for Total Perm•nen¢ Endowm•nt Unapplled Tryrt for Tot invertmqnt Rthrn T•tal To¢al ndowment erMlo*Tnent Éiooo £JtyJo £PDOO Évooo .00 Ai at I 2021. B*ev3Jue Dfthe p¥￿neTht endoWrn￿t Jnappl*d tffi,, rewrn To 63￿81 63.881 24587 88,468 1,769 1.769 24,587 24,587 63081 1,769 3,479 MoY*mints 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 S*end 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(Twn*nt Uty¥plled t{￿ retyJrn as at31 Dec￿r*s￿ 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 I8*na￿sts oftmslers h￿ra￿ to thcoTh 3.096 3,096 122 Closing b*ncE 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