THE EXETER DIOCESAN BOARD OF FINANCE LIMITED ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2023 Company limited by guarantee (No. 00186001} Registered charity (No. 2497981 TABLE OF CONTENTS Number Page Our Visionlvalues Legal Objects Strategic Report Strategic aims Objectives for the year Activities and achievements in the year Key performance indicator5 Future plans Sectlon 172 statement Financial review Principal risks and uncertaintie5 17 17 18 18 23 Structure and Governance 25 Trustees, Responsibilities 34 Statement of Disclosure to the Auditors 34 Appointment of Auditors 34 Administrative Details 3S Independent Auditors, Report 38 Consolidated Statement of Financial Activities 43 Consolidated Income and Expenditure Account 44 Consolidated and ED8F Balance Sheet 45 Consolidated Cash Flow Statement 47 Notes to the Consolidated Financial Statements 48 Key to abbrevlations ED8F EDPS SOFA SORP The Exeter Diocesan Board of Finance Limited EDPS Limited- the Board's Trading Companv Statement of Financial Activitie5 Charities SORP (Statement of Recommended Practice) 'Accounting and Reporting by Charities, 2019 Parochial Church Council Mission Communitv pcc MC The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 Detember 2023 OUR VISION '1 um the vine, you ore the brtjnches. Those who obide in me and l in them betsr muchfruit.. john 15.5 As God's pi18rim people. we seek to share in the misslon of God as revealed in the life, death and resurrection of Jesus Christ by= Growing in prayer We want to abide in Christ and live our lives close to God. Thi5 means taking risks as we become more honest with ourselves and more honest with God. Prayer opens up deep places within us to God's grace. which is why it 15 Such a life-giving attivity. Going deeper in prayer is essential if we are to witness to God's Kingdom and grow into the people God is calling us to be. Making new disciples A disciple is someone who follows Jesus Christ. With Christ as our companion and guide, we can travel through life differently and Invite others to share in the adventure. We want to be more faithful in our discipleship and allow God to 5hapÈ our priorities and value5. The gospel is good news but, if we are to bring more people to Christ, we need to find new ways of telling the story. of explaining our faith and giving a reason for the hope that is in us. Serving the people of Devon with joy We want to be ambassadors for Christ, making a difference in the world and witne55ing to God's love and jvstice, especially in the communities where we live and In our schoo15 and workplaces. Working in partnership with others who are transforming lives, we seek to address the global issues confronting our generation so that all may flourish. +Jackie Acting Bishop of Exeter The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 310ecember 2023 OUR VALUES Generoslty of Spirit We seek God's face in all, believing that everyone is made in the image of God. Preferring others and not thinking too highly of ourselves, we are compa55ionate, approachable and build trusting relationships. Wisdom We want our priorities to reflect scripture and our Christian values. Listening to voices unlike our own. we seek the wisdom of the Holy Spirit when making decisions after open and informed discussion. Re5pe¢t We welcome those who are different from us and show heartfelt respect in the way we speak with one another, treating all people with the dignity they deserve. Team Working We collaborate an(J work with others to achieve the best outcomes for thts5e we serve and support. We are positive. flexible and constructive, releasing others to use their gifts. (.} r.) Openness We open our hearts and minds without judgement so that we learn fiom God and one another and allow others to challenge us. Honesty Our principle5 are rooted in our Christian faith. We seek to be people of integrity: fair, responsible, and con515tent in all we do. We speak honestly with others and about them. Patience '•' Kindness ... Generosity Faithfulness •• Gentleness ++ Self-control Our GROWTH Values are rooted in the Fruit of the Spirit (Galatians 5.22) The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 The trustees. who are also directors for the purpose5 of company law, present their annual report, together with the audited consolidated financial statements, for the year ended 31 Decembei 2023. The directors/trustees are the same and in signing as Trustees, they are offering the Strategic report secrions in their capacity as directors. The combined report Satisfies the legal requirements for.. A Directors Report of a charitable company and group,. A Strategic Report under the Companies Act 2006," and A Trustees Annual Report under the Charities Act 2011. LEGAL OBJECTS The objects of the Oiocese of Exeter cover the entire county of Devon. The principal object of The Exeter Diocesan Board of Finance IEDBFI is to promote, asslst and advance the work of the Church ol England in the Diocese of Exeter by acting as the financial executive of the Exeter Diocesan Synod. EDBF has the following statutory responsibilities.. The management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measuie 1976 and the Church Property Measure 2018,. The repair of benefice hou5e5 as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972 and the Church Property Measure 2018. The management of investments and the custodian of assets relating to chLirch schools under the Diocesan Board of Education Measure 1991. and The ¢ustodian of permanent endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Council$ 35 Diocesan Authority under the Incumbents and Churchwardens ITru5tsl Measure 1964 and the Parochial ChuTch Councils (Powers) Measure 1956. iv. The strategic priorities of EDBF are established by the Diocesan Synod in communication with Deanery Synods, PCCS, Mcs, and the Bishop of Exeter. To this end, significant time and effort is committed to communication between these bodies and the bishop, as well as with the church nationally, and to implementation of the outcomes. This includes a series of consultations on specific matters relating to the priorities for the forthcoming year and fL¢rther ahead and taking forward the commitments arising from the Diocesan Synod and church nationally, including the diocesan budBet. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRATEGIC REPORT STRATEGIC AIMS The main role of EDBF is to identify and manage the financial èspects of the provision of ministry within the Diocese so as to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop's Council, Deaneries, Mission Communities and Parishe5 to further the mission and strategic priorities of the Diocese and in particular the strategic prioritie5 set out in the Next Steps Vision Statement, which can be lound on the dioie5an website at www.exeter.an lican.or We seek to work together in Mission Communities We seek to fulfil Dur calling to love God and Serve the people of Devon with joy through our network of Mission Communities. These are dfrver5e, vibrant and sustainable grouping5 01 parishes across the Diocese, which are mission-oriented, community-focused and loc311y- rooted. At the heart of this network are our parish churches, which for centuries have been places of prayer. pastoral care, evangelism and community service in Devon. Increasingly today, they are complemented by chapl3inciÈ5, social action projects and varied and creative new expressions of worship. the result of which is an exciting mixed ecology. Together, thev speak of God's compassion and love, and ensure a Christian presence in every community across the county. Mission Communitles Mixed Ecology Social Action Projects includes foodbank5, debt counselling mental health services, support gro*Jps, toddler gTOUPS, lunch clubs, memory cafes and environmental projects. PaT Ish Ch￿rcheS Parish Churches IResource & Minster) Festival Churches & Chapels of Ease Chaplaincies include5 working with schools, care homes. colleges & universities, hospitals. prisons & workplaces. Chaplaincies may also include work with groups such as children & families or specific areas of expertise, such as end of life care and funeral ministry. Digitryl Church includes streamed services, telephone services, social media channels and online communities. MISSION COMMUNITIES Church Schools Where there are Church Schools in a Mission Community, we need to see these as worshipping communities & build strong relationships. Fresh EKpress101)5 Includes new ways of being church such as Messy Church. Café Church, Church Plants and other new worshipping communities. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRATEGIC AIMS (continued) Communities are how hsjman beings relate to one ènother. We discover both what we need from others and what we can offer 50 that all may flourish. A5 the Church. our Mcs help us to be more effective in our discipleship of jesus Christ. They enable us to be flexible and to work across boundaries. breaking down any sense of isolation. They enable us to be more adept at responding to the variety of contexts and cultures of Devon, whether market towns, coastal communities, remote rural villages or large urban centres of population. They encourage the development of specialist and pioneering ministries, and SLtpport our work with schools, children, young people, families and older people in the community- The pandemic has taught us that we can adapt and change if we want to. As we take stock. we need to be unflinchingly realistic about the challenges confronting us, matched by our trust in the Holy Spirit who lead5 U5. Not every parish can offer every aspect of the Church's life and ministry, but by joining in partnership with neighbouring churches and forming a MC we can work together more effectively. There are 120 Mcs acro55 the Diocese of Exeter. We aim to be mission-oriented. communitv- focussed and locally rooted. As God's people we are called to live out our faith and continue the mission of God as revealed in the life, death and resurrection of Jestjs Christ. The strategy of the Trustees for achieving EDBF'S priorities is to maintain a sound financial structure which will enable EDBF to resource ministry and mission. Each year a iequest is made to every parish for contributions toward5 the Common Fund. the parish share scheme, which is designed to distribute the financial costs of the Diocese equitably. The Common f und pays for a significant proportion of the clergy stipends. their pension and housing, clergy and lay training, safeguariling and central support, but it only work5 properly if each parish in each MC contributes regularly and fully. We support 311 PCC5 and Mcs in their financial administration to develop efficient ways to collect and man3ge resources including through the Parish Giving Scheme. The Board reviews the financial plan on an annual basis. and thi5 was most recentlv undertaken in May 2024. with the current plan covering the years 2025 to 2050. The plan show5 a Continuing budget deficit of around £2.Sm per annum and attion is now being taken to address this and establish a sustainable IDng-term plan. This requires stringent cost control across all area5 of the budget and assumes an Increase in the number of unpaid licensed ministers Iself-supporting clergy and licensed lay ministers) and unpaid lay people involved in ministry, alongside a reduction In the number of stipendiary clergy working within the Diocese. Total Return accounting has a150 now been adopted, to release funds from the Diocesan Stipends Capital Fund. OBJECTIVES FOR THE YEAR The strategic aim5 were established by the Diocesan Synod in March 2016 and refreshed in lune 2019. The aims have informed, and will continue to inform, decision5 and policies èt all levels. The vision is what we would like the future to look like and the strategy sets out how we seek to work together in Mcs to enable this to happen. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 OBJECTIVES FOR THE YEAR Icontinuedl It Is vital that our planning continues to reflect our priorities, whilst continuing to meet our statutory and operational requirements. Next Steps Next Step5 is a further refreshment of our vision to grow in prayer, make new disciples and serve the people of Devon with joy. Every parish 15 unique and special, but churches thrive when they work in partnership with each other in MCS. This is why our strategy has always been to support Mcs to develop and flourish. Next Steps offers a range of sustainability indicators for Mcs in the aieas of mission and ministry. resour￿5 and finance, buildings and governance. Healthy churches are shaped by the growth values of the Fruit of the Spirit.. love. joy, peace. patience, kindness, generosity, faithfulness, gentleness and self-control. We are developing tools to help Mcs identify where to put their efforts and resources in the short tefm and how best to plan for the long-term. The Mission Community Health Check has been piloted and ￿S now being offered to Mcs across the Oiocese. It Uses two on-line surveys to provide data on perceptions and priorities of those who are regular worshippers and those in the communitv and this forms the basis of a facilitated conversation. leading to 3 simple action plan. In 2023, 30 different Mcs engaged with the Mission Community Health Check, with 11 reaching completion. Other resources include 'Lightening the Load,, 'love Your Church, fundraising resources and Generosity resources. The tools being developed draw inspiration from Jesus. teaching on the Vine in John IS. •4S The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 The most significant event in 2023 was the retirement of Bishop Robert at the end of September, after leading and serving our diocese since Apiil 2014. It is testament to his leadership that the vision he shared with us in hi5 installation sermon still underpins all that we do.. to grow in prayer, to make new disciples and to serve the people of Devon with joy. Bishop Robert has overseen a period of significant change in our diocese with grace and discernment. We would like to thank him for everything that he did for God's Kingdom here in Devon and wish him well in his retirement. ACTIVITIES AND ACHIEVEMENTS IN THE YEAR We saw a significant improvernent in Common Fund collections in 2022, as life started to return to normal after the pandemic, which was very encouraging. Disappointingly, the level of contributions dropped back in 2023. As a result, the total contributions received by the end of February 2024 were £8.4m12022.' £8.5ml, which represented 93.04%12022.. 94.62%) of the amount requested from parishes. As ever, we are very grateful to the continuing generosity of the people in our worshipping communities, particularly in the current economic climate. Common Fund Collection Rates 2019 - 2023 95 59% 94.62% 90.50% 9135% 93.04% 90% 80% 60% 50% 20% 1 2019 2020 2021 2022 2023 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR {contlnued) Safeguarding The Diocesan Safeguarding Team IDSTI has a wide range of experience in applying safeguèrding in complex 51tuations. The DST manage allegations and concerns relating to church officers, manage the risks p05ed by known offenders who regularly attend church. and give advice on all other aspects of safeguarding. The DST also deliver safeguarding training to leaders in the diocese. manage all Di5c105ure and Barring SeNice IDBS) applications. The DST works with a network of nearly 400 Parish safeguarding Officers IPSOI. The PSOS are 311 volunteers. and without their dedication we could not effectively manage safeguarding across the 482 parishes that make up the diocese. The DST continue to manage approximately 100 new referT315 each year and holds regular Core Group meeting5 to manage safeguarding cases. The DST also respond to a much higher number of requests for support and advice about safeguarding concerns that do not include an allegation against a church officer,. these include members of congregations who are experiencing domestic abuse and concern for people in the community at risk of harm from child abuse, exploitation, and adults at risk of harm whose ability to protect themselves is significantly impaired. The DST regularly make referra15 to statutory agencies to provide appropriate support and protection to those at risk of harm from abuse or neglect. The DST also manages around 30 Safety Plans for known offenders who regularly attend church, to mitigate any risks linked to their attendance. The DST also deliver 2 training se55ions each week, and over the course of the year the DST delivered training to around 500 people. The DST also processed around 2,000 DBS applications in the year. which highlighted approximately 20 blemished certificates from applicants seeking to work with vulnerable people, who had convictions that needed to be a55essed. The Diocese was one of the -Pathfinders" piloting the National Church's response to the Independent Inquiry into Child Sexual Abuse IIICSAI. Following the completion and evaluation of the Pathfinder, General Synod has now approved the changes to Canon 42, which will See the Diocesan Safeguarding Adviser become a Diocesan 5afegv8rding Officer IDSOI with greater independence, and the National Church 15 also now expected to adopt the model of Regional Supervision we have been trialling. The Diocese has upgraded its Parish Safeguarding Dashboard with the Parish Safeguarding Hub. which will give parishes the ability to manage their safeguarding training and Safer Recruitment through the HL¢b. We are planning to adopt the National Safeguarding Case Management System INSCMSI in the Autumn of 2024. The National Safeguarding Team INSTI have updated the Safeguarding Learning Framework and the guidance on Managing Allegations. We expect to see final versions of these later in the year. The NST have also ntroduced a Safeguarding Quality Assurance Framework, with five key safeguarding themes.. Prevention. Culture & Leadership & Capacity, Risk Management, Victirn5 & Survivor5, and Learning & Supervision. The diocese is due to be stjbject ro an external audit. commissioned by the National Church. later in 2024. The National Church has received the recommendations of Professor Jay on the future of Safeguarding in the Church. The Church is currently consulting on this before deciding on next steps. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Icontinuedl Parish Giving Scheme The Parish Giving Scheme has continued to Erow across the Diocese, encouraging a deeper understanding of generous givin& streamlining administration in parishes, improving parishes, cash flows by returning gift aid to parishes every month, and givinE donors the option to increase their future giving in line with inflation. In December 2023 there were 3,37712022.. 3,2341 people in our Diocese that made 39,631 gifts12022.. 38,1381 to 287 12022.. 2671 active church accounts, contributing 3 total (excluding g>ft aid) of £2.7m12022.' £2.5ml during the ye3r. A further £0.6m was claimed in gift aid. The average gift lextluding gift aid) was £15.80 pe¥ week12022.. £14.98). Parish Giving Scheme fotol numberolG¢tive chur¢hesnotqlnurnberoAdonors ot the end Dleoch quarter 290 3,400 285 3.350 280 3.300 275 3,250 270 3.200 265 3.150 260 3,100 255 250 3.050 245 3,WO 240 2.950 Q1202Z Q22022 Q32022 Q42022 Q12023 Q22023 Q32023 Q42023 Total nufflber ol active churches ~Total number of donors Totol number of donors/Totol sum returned to churches 3,4 E300,000 3.350 £290.000 3,3( £280.000 3,250 E270.0 3.2 E260.0 3.150 E250,0( 3,1 3.050 É240,0 4,000 É230,0 2,950 E220,0(XJ Q12022 Q22022 Q32022 Q42022 Q12023 Q22023 Q32023 Q42023 . ToL31 numberof donor5 Total S￿ffl returned lo churches The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR (continued) Mission and Ministry The Mission and Ministry team is here to inspile, resourte and support mission and ministyv throughout the Diocese of Exeter. 2023 brought the retirement of Rev Philip Sourbut a5 Director of Mission & Ministry and the induction of his successor. Rev lan 8u55ell, We thank Philip for hi5 leadership of the Mission & Ministry team and wish him well in his retirement. In the summer of 2023 Rev Steve Jones, the Rector of the Littleham cum Exmouth with Lympstone Mission Community and his team trained a group of mediators who are now available to be used in mediation in mission communities. In May 2023, the diocesan mission tent at the annual Devon County Show showcased the hi5 is My Story, exhibition, which continues to make its way around the county hosted by different churches. We led 3 lively and engaging children's tent at the Show. supported by workers and volut)teer5 from across the Diocese. 6t4 We appointed a new Mission Enabler, Revd. Jeremy Putnam, in July, who quickly helped us prepare for the Come and See mission weekend in November. Different Mcs hosted a whrile range of Come and See events to invite friends and neighbours to. We also welcomed the Archbishop of Canterbury who travelled all over the Diocese, helping u5 engage with our communities in differènt WaV5, confidently Sharing the gospel. The Come and See theme continued with Christmas events and will be picked up again in 2024. 10 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 ACTIVITIES AND ACHIEVEMETrrrs IN THE YEAR Icontinuedl Mission and Ministry Icontinuedl We were sad to say goodbye to Lydia Perri5, our Creation Care officer, but at the same time grateful for the matched funding she and Sophie Philips athieved to enable Sarah Charker to join ys in November. Amongst other thing5, Sarah is focussing on supporting churches in the Eco Church award scheme. We now have 3712022.. 18) churches that have achieved Bronze Eco Church and 1512022." 91 Silver. We have continued to partner with several Christian organisations. using their skills and expertise in running more than 10 training ses510ftS this year for Children and Family workers and volunteers, as well as running the Craft tent at South West Youth Ministry's Spree gathering- with over 1,500 children and young people. Additionally, new networks of children and family workers and volunteers are growing local expertise in different parts of the Diocese. December brought a day of prayer in the Cathedral when we came together in this year of transition, led by Bishop Jackie, our acting Diocesan Bishop, to pray for the mission and ministry of this diocese. 4,300 people came to the cathedral that day, many taking part in the day of prayer in a variety of Cfeative ways. The Vocations Development Officer and the Diocesan Director of Or(linands IDDOI. with their teams, work to f05te¥ and encourage those sensing a call to serye God in the authorised lay and ordained ministries. Two events were hèld to help people consider and explore both ordained and lay licensed ministry, as well as other focused work. Developing the ministry of women," encouraging candidates from 3 UK Minority Ethnic IUKMEI heritage,. and encouraging younger vocations, remain significant priorities and the diocese encourages attendance at national events for such group5. Planning has also begun for a regional Southwest event for young people called Step Forward In September 2025. We continue to have close link5 With our two local ministry training providers. South West Ministry Training Course and St Mellitus College. We h8ve run 13 different Grow COLtrses. and piloted video versions that can be accessed at any time. 130 people took part in these courses. with many more 3ccessing material themselves. Grow 1$ 3 suite of on-line courses that provide basic learning in a number of different roles. As an outcome of 3 training review. the Lay Discipleship project is now gearing up for the transfer of the successful Foundations in Christian Ministry tourse from south West Ministry Training Course15WTMCI into the Mission & Ministry department. The updated Foundations course is due to launch in September 2024, and aims to be more accessible, allowing greater numbers to access the course. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 AcfiviTIES AND ACHIEVEMENTS IN THE YEAR (continued) M45sion and Ministry Icontlnued) Deacons Ordained in 2023 Male Female TOTAL Distinctive Oeacon5 5elf-Supporting Stipendiary io TOTAL io 16 Distinctive Deacons Self-supporting Stipendiary 12 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 A￿1VITIEs AND ACHIEVEMENTS IN THE YEAR Icontinuedl Mission and Ministry (continued) Priests Male Female TOTAL Ordained in 2023 Self-supporting Siipendiary 12 TOTAL 14 Self- Supporting Stipendiary Ordinands starting training in 2023: Age 31 and under Male Female TOTAL 40-54 55 and over TOTAL Board of Educatlon On l January 2023 the Diocesan Board of Education was reconstituted to become a committee of the Diocesan Board of Finance IDBFI. The DBE Committee exercises the power5 and duties conferred on the DBF in its capacity as Dioce53n Board of Education IDBEI by or pursuant to the 2021 Measure and which must be delegated to the DBE committee bv the 08F (the DBE Functions) in accordance with the Scheme made by the Diocesan Synod. The new Board ha5 a good range of skills and experience and is chaired by The Venerable Douglas Dettmer. Archdeacon of Totne5. The Board monitor 2nd evaluate the effectiveness of the Diocesan Education Team's work. The Education Team have seen significant change5 this year and enter 2024 with new, but experienced, staff joining the existing team members. 13 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR (continued) Board of Education Icontinuedl The DBE'S Strategic Plan ha5 four Strategic Prtorities, as follows.. TO ensure that the Diocese of Exeter has a successful diocesan family of schools. To respond pro-actively to the changing educational landscape in a way which Strengthens school performance, capacity. and sustainability. To work effectively and demonstrate posltive impact. To play our part in ensuring schools are a central part of the diocesan mission. The work of the OBE and the Education Team has been posltive as together we have sought to enable all through the love of God in Jesus Christ, to 'live life in all its fullne55' and fulfil our vision to 'nurture vi5ion-in5pired ed+Jcation,' nourish personal and spiritual growth.. and enable connected communities that IIouri5h'. Much of our work is to ensure Church of England schools 3re1iving out their Chiistian foundation and Christian vision and Christian distinctivenes5 are central to the work of each school. We do this through providing a comprehensive training and network programme fgr schoo15, including bespoke training based on their context and needs. Officers work closely with leaders, Including those involved in governance, to ensure each School has a Christian vision, underpinned by theology, which drives and shapes the school as it seeks to enable all to 'live life in all its fullne55'. Work with schoo15 ensures vision influences provision and result5 in impact. At the beginning of thi5 academic year (September 20231 following a period of collaborative planning, the Diocese of Exeterfs Education Team joined with the other southwest dioceses in an exciting pilot to introduce the Programme for Church School Flourishing IPCSFI across our family of schools. PCSF is intended to enrich and deepen the expertise of academy trusts and larger federation5, enabling the flourishin8 of their church schools, their children. young people and Bdults. Feedback to date has been positive and we plan to offer a bespoke version from September 2024 called Exeter Flovrishing Pa¥tnership. The DBE Committee is committed to playing its part in ensuring schools are a central part of the diocesan mission. Church School Leaders Commissionlng Service5: This year we have seen a significant increase in the proportion of commissioning service5 held in local churche5 for new School headteachers. These services 5htsw the commitment of church communities to walk alongside new headteacher$ as they seek to uphold the Christian foundatitsn of their Church of England School. It is a very positive start for a new leader and clearly demonstrates the important of the relationship between the church, school and families. 14 The Exeter Diocesan Board of Finance Lirnited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR {continued} Board of Education Icontinuedl school built on Prayer- Lamerton C of E Primary has been following its vision of 'dreaming, believing and achieving together, after experiencing a fire in February 2023. During the school's rebuilding process. both students and staff had a moving way of reflectin8 on this new season. Melody, the headteacher, exp13ined, "we managed to write prayers and place them in the walls of our new building. Our new school was built with prayer.- Archbishop brings'lncredible Message of Hope,: In November, the Archbishop of Canterbury visited two schools in North Devon.. Ilfratombe C of E Academy and Ilfracombe C of E junior School. Ouring hi5 Vlslt to Ilfracombe Academy the Archbishop spoke with staff and students, and led collective worship in which he opened up about how he had experienced a difficult childhood. Students call for change in COP28 video.. Pupils at The Beacon C of E Primary School have starred in a film ihat was shown at the COP28 Conlerence in Dubai. HÈadteacher Anne Billington said. "Asking the big questions about and becoming courageous advocates in caring for God's world is rooted in our Christian vision to live life in all its fullness Ilohn 10..101. Pupil Chaplains: Torre C of E Academy appointed Pupil Chaplains in September 2023, and they are making a real difference to their School. Each Pupil Chaplain is linked to a cla55 and delivers engaging opportunities for worship and refSection. Headteacher Laura Kendall said, 'In order to live life to the fullest. we believe in developing ourselves beyond academia through values led experiences and curriculum. ReflectlOll5, theology, spiritualitv and advocacy are an important part of the supportive role that our chaplains play in their linked classes. At the start of 2024, there were 134 Church of England schools within the Diocese ol Exeter,. 122 primary, 3 infant. 4 junior and S secondary schools. 113 of our schoo15 are now in a multi-school grouping (federation or mult¢-a¢ademy trust), resulting in only 21 schools remaining outside a formal p8rtnership. A formal partnership is defined as one with shared accountability through governance, for example an academy trtJ5t or a federation_ 63% of our Church of England Schools18411341 are now academies within academy trusts. Of the 21 schools that are not in an academy trust or federation, a third are currently exploring potential partnership options. Working with schools, governance, to support them in their explorations around partnerships and subsequent due diligence about potenlia1 partners, has been a significant and increasing part of our work. The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 310ecernber 2023 AcfiviTIES AND ACHIEVEMENTS IN THE YEAR (Continued) 8oard of Education {continued} The DBE and Education Team continue to play an important part as a system leader within the education landscape. Our role includes significant liaison and connectivity with the Department for Education and their south West Regions Group, Multi-Academy Trusts, other dioceses and the Church of Engl3nd Education Office. The geographical boundaries of the diocese mean we also work c105ely with three Local Authorities.. Devon, Torb3y and Plymouth. Our Annual Report to Diocesan Synod 2023 can be viewed on the diocesan website at htt exeter.an lic3n.or schools edbe-vision-strate Percentage of Diocese of Exeter Church of England schools subscribing to our Education Service Level Agreements loo% 80% 70% 60% 50% 40% 2019 2020 2021 2022 2023 Communications and Engagement In 2023 we launched the This is My StOTY project. This is a fa￿th-Sharing photo portrait exhibition featuring images and testimonies of Christians from acro55 Devon. It is currently touring churches and is also Bvailable online 2nd on social media. In May 2023 we ran a This is My Story exhibit at the Devon County Show. Other big projects for the communications team included the Coronation, the farewell to Bishop Robert, the Come and See Archbishop's mission weekend In November 2023, which involved helping create the Come nd See course. and the Come and Pray event at Emetei Cathedral in Decembei 2023. The team also supported the Vacancy in See process to seek a new diocesan bishop bv helping facilitate consultations and producing the Statement of Needs. Natiorsally we have been supporting the Diocesan Communicatofs network in the areas of wellbein8 and the Living in Love and Faith process. We also continije to run the DevDn Church Wedding5 project and have recently taken on communications oversight for Growing the Rural Church and Devon Pilgrim. 16 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 ACTIVITIES AND ACHIEVEMENTS IN THE YEAR {continuedl Communications and Engagement Icontinuedl In addition to project work we aim to embed OL>r vision to Grow in Prayer. Make New Disciples and 5erv@ the People of Devon with Joy in all our communitation$ and engagement work. We continue to run regular ¢ommunication5 training for churches (such as the Digital Ministry Grow Course). provide tailored cornmunications support for parishes lincluding crisis comms) and 31m to effectively communicate with churches and communities throu8h our newsletters. website, social medi3 platforms and through the local and national media. Racial Justice Charter and Strategy Our R3ci81 justice Charter is a challenge and an invitation. We believe we are called by God to identify, challenge and address racism in all Its forms. We invite people everywhere to join us In a journey of change in our society. We recognise that change takes time and requires commitment, and there are significant challenges before us. The journey ahead of us will be characterised by choices, failure5, risk-taking and renewal, but as Christians. we are people of hope and will be sustained by the grace of God. We have four guiding commitments.. Committed to Jesus Christ and His Kingdom.. Committed to conversation,. Committed to action and better representation,. Committed to accountability and transparency. Diocesan Synod approved the Charter and Strategy and a series of actions in March 2023. The first annual update was presented to the March 2024 Diocesan Synod. The priority in year I was to focus on participation and overall progress was made. but there remains mo work to be done. Two appointments lone lay and one clergy) have been made to the 8ishop's Diocesan Council of people from a UK Minority Ethnic IUKMEI background, therebv strengthening the representation on this key decision-making bodv. KEY PERFORMANCE INDICATORS Comprehensive quarterly operational reports are produced. and these are presented to the trustees through the Bishop's Diocesan Council and shared more widely with staff and other key stakeholders. The individual key performance indicators are shown against the relev3nt sections in the report above. The reports a￿ also available on the diocesan website. FUTURE PLANS The financial consequences of the pandemic have presented a considerable challenge to EDBF. An operating deficit of well over £2m is budgeted for in 2024 and, without remedial ction, deficits of this magnitude would be likely to recur. While EDBF has substantial reserves and is able to meet the budgeted deficit, they are not without limit. A portion of the underlying assets, clergy housing. is needed for ministry while proceeds fiom glebe suitable for development are unlikely to be realised within the next two to three years, The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 FUTURE PLANS {continued} There remain5 some surplus housing Stock and there is the option of selling some investments, but such sale5 reduce rental and investment income. As a consequence, in 2024 and, in all likelihood, 2025 and beyond, the trustee5 and Diocesan Synod will need to review the prospects for income growth, principally the Common Fund, and determine the sustainable level of expenditure, 67% of which is thÈ c05t of stipendiary ministry, with a view to reducing and eventually eliminating, EDBF'S operaling deficits. EDBF takes Diocesan Synod's adoption of the National Routemap to Net Zero Carbon INZCI by 2030 very seriously but the extent to which promised National Church funding of £190m will be made available to the dioceses. cathedrals and parishes remains to be determined. This uncertainty combined with the financial pressures faced by EDBF points to the need lo review immediate NZC spending plans. In the autumn of 2024, we look forward to welcoming Bishop Mike as our new Bishop and benefitting from his wisdom and leadership. He will lead, develop and shape the Vision and Strategy of the Diocese during hi5 tenure of office and there may be change. In the meantime, we remain committed to making new disciples. growing in prayer and serving the people of Devon with joy. Supporting th15 commitment and with the aim of ensuring a Christian presence in every place in Devon, the focus on a mixed ecology of ordained and lav leaders set out in Next Steps is likely to be widened by the adoption of an enhanced lay tTaining programme and further use of the Mission Community Health Check tool. SECTION 172{11 STATEMENT The trustees act in Eood faith to continually balance the success of EDBF 3gainst many other factors, including ensuring that.. Business is conducted morally and ethically, in line with the EDBF'S Code of Conduct: Short term gains do not have an adverse consequence on EDBF'S long-term strategv. success and ber¥efits' Employee and clergy welfare, training and interests are taken care of,. Supplier ielatior15hips are strong, mutually beneficial and comply with ED8F's policies.. Good relationships exist with our PCCS and MC5," and Any community and environrDental impacts as a result of EDBF'5 operations are considered. There have been no major changes to any of the above areas in 2023. FINANCIAL REVIEW Financial perfo¥man¢e The Consolidated Statement of Financial Activities Ipage 431 for the year show5 that the income (before investment Éainsl totalled £17.2m12022.. £17.8ml and expenditure amounted to £17.5m12022'. £16,6ml resulting in net expenditure Ibefoie investment gainsl1055esl of £0.4m12022.. net incorne of £1.2ml. 18 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 FINANCIAL REVIEW Icontinuedl Financial performance Icontlnued} The net income, after allowing for net investment gains of £5m on investment properties and financial investments. resulted in a net InC￿ase in funds amounting to £4.7m. Total fund balances increased from £122.2m to £126.9m over the year. The net operating deficit in 2023 was £2.Om. after excluding the surplus from Sale of property. At 31 December 2023 the unrestricted and undesignated reserves Isee Notes 20 and 211 amounted to £8.2m12022.. £7.2ml. There w3$ an aggregate gain on the revaluation of investment assets of £5.Om, based on the valije at the start of the year. The value of investment held as property increased by £1.2rn and listed investments increased by of £3.8m. Operational surplus/{deficit)" £286.000 É152,000 -É543,0( -£1,156.OOQ -£2,037,000 2019 2020 2021 2022 2023 'Excludin8 a55Et 5ale5 Ènd pen%oD adiu51ment5 Unrestricted Reserves balance £io,000,o £8,OW.O £6,0(o,rNJo £4.0(x),000 £2,OW.OOD EO 2019 2020 202J 2022 2023 19 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 FINANCIAL REVIEW {continuedl Significant Property Transartsons Whilst no new houses were purchased in 2023. our policy continues to be, as finance allows-. To replace un5Ultable properties.. To accommodate the chènging geographical deployment of clerEY Wlthin the Diocese,. and To realise development potentl81 in some properties. thereby L¢sing our iesotkrces more effectively for the ministry of the Church. One area of glebe land was sold with planning permission and terms were agreed with a promoter for the development of two further parcels of glebe land. Six houses and one flat were sold within the year and a planning appeal for a housing plot on a retained parcel of land was sijbmitted. The long term aim continue5 to be to seek to maximise income retUTns and to adjust the balance of ED8F's asset holding5, but sale5 are required to underpin cashflow and to support the budget In the short term. Thirty-two in-going schemes were undertaken in advance of newly appointed Cler￿ taking occupation and quinquennial repair5 were instructed on S7 properties. Properties cor5tinue to be rented when not needed to house clergy and the gross rental income achieved was £1.2m. A further £0.4m 15 received from the rental of glebe property and land. Current use of Clergy Housing Number of Clergy Houses in portfolio 315 Occupied by CleTgv 195 Rented 95 Vacant 25 20 The Exeter Diocesan Board of Finance Lirnited Annual Report & Consolidated Financial Statement5 Forthe year ended 31 December 2023 FINANCIAL REVIEW Icontinuedl Balance sheet positlon The trustees consider that the balance sheet together with details in note 21 show that the restricted and endowment fund5 are held in an appropriate mix of investment and current ssets given the purposes for which the funds are held. While the net assets at the balance sheet date totalled £126.8m12022.. £122.2ml it must be remembered that included in these totals are properties. mostly in use for the ministry, whose carrying value amounted to £57.5m12022'. £58.6ml. Much of the remainder of the assets shown in the balance sheet are held in restricted funds and cannot be used for the general purposes of EDBF. Reserves policy Unrestricted reserve5 EDBF needs unrestricted reserves for the following purposes.. 81 To cover Common Fund shortf311s in the short-term., bl To ensure that funds ère available to cover the legal employment entitlements of all employees and 5tipendiary clergy,. cl To cover expenditure during the time it would take for the Diocese to adjust to a major change resulting from external arsd irreslstible forces., dl To provide a fund for specific aspects of diocesan work earmarked as coming from reserves.. and el Excess reserves being necessary in an individual year. in line with the expectations in the long-term finance plan. EDBF aims for an ongoing level of unrestrirted reserves of 25% to 30% of anrsual budgeted expenditure. in order to cover items al to cl. above. Any amounts required to covei items dl and el, above, are considered on an annual basis. The unrestricted free reserves as at 31 Oetember 2023 are outside this range at 47% of 2024 budgeted expenditure of £17.4m. This is mainly the result of selling property assets that were previously in the designated fund. However, at the current time, with the significant economic uncertainty, and with a forecast deficit in 2024 of £2.6m, having a higher level of unrestricted reserves is considered necessary. EDBF a150 holds endowment and restricted reserves which are legally limited In use to specific purposes. Both EDBF'S reserve policy and the level of reserves are revtewed annually. Reserves tied up infixed ossets The general lunrestrictedl fund comprises net assets amounting to £8.2m of which £O.Sm is tied up in intangible and tangible fixed asset5. Designatedfurtds The trustees may, with the approval of the Board, designate additional unrestricted reserves to be retained for an agreed purpose where this is considered to bè prudent. 21 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 FINANCIAL REVIEW Icontinuedl Reserves poll¢y l¢ontinuedl Designotedfunds (continued) 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 reserve together with the intended use of the reserve is set out in note 23. At 31 December 2023 total designated reserves were £21.5m12022: £22.8ml, of which £20.Im was tied up in tangible fixed assets. Restricted endowmentfund5 As set out in note 20 to 23 ED8F hold5 and administers a large number of restricted and endowment funds. As at 31 December 2023 restricted funds totalled £5.6m12022.. £5.3ml and endowment funds totalled £91.Sm12022'. £86.8ml,with one proviso, neither Is available for the general purposes of EOBF. In December 2023, the directors of EDBF approved the adoption of Total Return Accounting in respect of the investments held within the Diocesan Stipends Capital Fund. under the powers given in the Stipend5 Funds (Amendmentl Measure 2016. The directors approved a base date of l January 2001 and agreed to use the Consumer Prices Index ICPII for the ndexation. An initial sum of £900k ha5 been allocated in the 2024 budget for work to improve the Energy Peiformance CertIf￿Cate IEPCI rating and Net Zero in o*Jr clergy housing. Future allocation of funds from the Un3pplied Total Return IUTRI allocation will be determined by the directors within the budget planning process for 2025 and beyond. As at 31 December 2023, the balance on the Trust for Investment am04Jnted to £19.8m and 15 not available for the general purpose5 of EDBF. The balance on the Unapplied Total Return fund at the year-end was £27.8m. The Unapplied Total Return fund is available to Support clergy Stipends and housing over the long teim. Grant makin8 and donations policies All grants and donations are made in furtherance of EDBF'5 Strategic aims and objectives- see note 11. The policies on the making of principal grants are.. Ordinands- 8rant5 for living expenses are paid to tsrdinands against an assessment of need in line with national policy,. Removal and resettlement grants- grants normally covering the full cost of removal expenses and resettlement grant5 in line with national guidelines are available to Stipendiary clergy on moving to or within the Diocese.. Archbhshops, Council- the Board continues to contribute to the various costs of the national church as requested- and Strategic Development Fund ISDFI- this fund relates to grants received from the Archbishops, Council and EDBF funding for those projects in receipt of SDF. All grants are taken into account when a non-cancellable commitment to pay has arisen. 22 The Exeter Diocesan Board of Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 DecembeT 2023 FINANCIAL REVIEW Icontinuedl Investment polioi All investments held by EDBF have been acquired under powers available to the Trustees. The investment of diocesan funds aims to achieve the income ￿quirementS of the diocesan budget, whilst maintaining, so far as possible, the purchasing power of ihe investments. year-on-year. Investment decisions will take account of the ethical consideration5 implicit irh investing on behalf of the Diocese. Fund5 at 31 December 2023 'ooo Proportlon of Portfolio Income yield Total Return in year in year CCLA Managed CBF Investment Fund CBF Deposit Fund 34.347 loo% 2.65% 4.51% +12.34% +4.51% Other Funds 34,360 loo% EDBF also holds investment properties, in the form ol three commercial properties and historic glebe land and property. These are all held within the Diocesan Stipends Capital Account (see notes 20- 231. Fund5 at 31 December In¢ome yleld Total Return in year in year Z023 £,￿0 27.101 Investment Propertie5 1.38% 6.78% Operatlonal relationships EDBF f05ters relationships with the parishes acr055 the diocese. through the provision of clergy, support and training and by engaging with them where it is important to obtain their views. partic(Jlarly where there are Common Fund consideration5. EDBF fosters relationships with Suppliers by seeking to work with them to build mutually beneficial relationships and bv paying invoices within agreed credit term5. PRINCIPAL RISKS AND UNCERTAINTIES The trustees are responsible for the identification. mitigation and or management of risk and have carried out a formal risk management process to assess business risks and to implement risk management strategies. To help achieve this, a register of all the risks identified is maintained (the Risk Registerl and, èlongside It, 3 management and mitigation strategy formed. This is reviewed annually by the trustees. 23 The Exeter Diocesan Board of Finance Limlted Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 PRINCIPAL RISKS AND UNCERTAINTIES (continued) The above process has been delegated to the Assets Group with the responsibility for delivery of the mitigation identified by the arsnual review being delegated to the Diocesan Director of Finance. The Risk Register identifies the types of risks that EDBF faces. prioritising them In term5 of potential impact and likelihood of occurrence, and the means of rnitigating them. The Assets Group in conjunction with officers keep under review known risks and seek to identify new circumstances which may pose a risk to EDBF as part of their ongoing work. The current risks with the highest residual risk score and the steps taken by senior management to mitigate them are as follows.. Fall in the number of people within our worshipping tornmunities., o Clear statement of our vision and strategy 15 constèntly reinforced by the Bishops and the senior leadership team Provision of additional diocesan-wide support through the Lay Oiscipleship project and support to Mission Communities o Provision of Living in Love and Faith ILLFI resources. training and support for parishes and Mission Communities A number of mission initiatives have been adopted to encourage and improve participation in church life, with support through strategic Development Funding Financial sustainability of ED8F,. Financial plan, covering the period through to 2050 o Regular reports to 8DC and Diocesan Synod setting out the scale of the challenge and mitigation required o Sale of surplus DBF clergy housing, where no longer required for ministry Adoption of Total Return accounting o Engagement with the Diocesan Finances Review Eneagement with the Natitsnal Vision & Strategy team to develop plans for securing Diocesan Investment Programme funding A shortfall in the Common Fund request-, o Regular communication of our vision and stfategy by the Bishops and the senior leadership team o Support provided by the Mission Resources Team to parishes and Mcs Promotion of the Parish Giving Scheme as an effective means of regular giving Development of the diocesan giving strategy 24 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 PRINCIPAL RISKS AND UNCERTAINTIES (continued) EDBF becoming responsible for Imultiplel church buildings where there is no longer a pcc,. Through Growing the Rural Church initiative and pastoral reor@anisation, the Church Buildings Strategy group ensures that information ènd support is available for the extended use of church butldings. Reduction in rental income due to changes in tenancy legislation,. o Representation made to Government as part of recent consultation process relating to Section 21 Ino fault) notices o Pastoral care and counselling services are available to all members of staff Failure to recruit and retain suitable qualified and Skilled leaders and governors in our school5,' Engagement with national recruitment bodies o Work with strategic partners to ensure training opportunities are provided for future leaders o Work in partnership with multi-academy trusts and teaching schools to talent spot and to develop training packages Unexpected departure or protracted unavailability of a key member of management team,. o Members of staff have been trained to a level where should this situation arise. there is resource available to cover key areas of responsibility o Annual appraisals and regular one to one meetin85 provide support and high- level communication. with reviews of workload pressure5 The trusrees are satisfied that all major risks have been reviewed and systems or procedures have been e5t8blished to manage these risks. STRucfuRE AND GOVERNANCE Summary information about the structure of the Church of England The Church of England is the established church, and HM The King 15 the Supreme Governor. It is organised into two provinces Icanterbury and York) and 42 dioceses. Each diocese 15 a See under the care of a bishop who is charged with the cure of souls of all the people within th31 geographical area. This charge is shared with priest5 Wlthin benefice5 and par15hes which are sub-divisions of the diocese. The National Church has a General Synod comprised of ex-officio and elected representative5 from each diocese and it aErees Measures for the governance of the church'5 affairs which, if enacted by Parliament, have the force of statute law. In addition to the General Synod, the Archbishops, Council has a coordinating role for work authorised by the synod,. the Church Commissioner5 manage the historic assets of the Church of England,. and the Church of England Pension Board administers the pension schemes for clergy and lay workers. Within each diocese, overall leadership lies with the Diocesan Bishop, who exercises that responsibility as bishop within the Diocesan Synod. 25 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Ftnancial Statements For the year ended 31 December 2023 STRUCTURE AND GOVERNANCE (continued) Summary information about the strurture of the Church of England (continued) The Diocese of Exeter is itself divided into 21 deaneries. each with its own synod and within each parish there is a parochial church council which shares with the parish priest responsibility for the mission of the church in that place. in a similar way to that in which the Bishop shares responsibilities with the Diocesan Synod. Whi15t each diocese is a separate legal entity. with a clear responsibility for a specific geographic81 area, being part of the Church of England require5 and enables each diocese to seek support from and work in partnership with neighbouring dioceses. Or8anisational structure EDBF 15 a company limited by guarantee (No. W1860011 registered in England & Wale5 and registered charity (No. 2497981 governed by its Memorandum and Articles of Association. The company's Pfincipal activity is to promote, assist and advance the work of the Church of England within the Diocese of Exeter. It was established in its present form in 1922 and is successor in title to the Exeter Diocesan TrLtstees. EDBF'S governance and oversight of policy development is the responsibility of the tTUStees, who are also directors of the company and trustees for the purpose5 of charity law. The trustees/directors of ED8F can compri5e'. 11 ex-officio members consisting of the diocesan and two suffr3Éan bishops, the dean, four archdeacons and the chairs of the Synod House of Clergy and Synod House of Laity and the Chair of EDBF-, 4 clergy elected from the house of clergy from among their number on the basis of one per aichde3conry,' 8 lay persons elected by members of the house of laity on the basi5 of two per èrchdeaconry- and A minimijm of 3 and a maximum of 8 members nominated by the diocesan bishop. The Oioce5an Synod. the statutory governlng body of the Diocese. is an elected body drawn from across the Diocese with responsibility for setting the vision and strategy of the Diocese, guided by the Diocesan Bishop. The Synod membership is elected every three years,. the CLJrrent members took office on l August 2021. Whilst ED8F is a separate legal entity. with lear responsibilities under both company and Charity law. a5 well as a governing memorandum and articles of association, by virtue of the National Institutions Measure 2000 EDBF Is subject to the direction of the Synod in all it5 activities, unless such direction 15 not in accordance with the governing documents or statutory regulations. 26 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRUCTURE AND GOVERNANCE Icontinuedl Attendance rates at meetings in 2023 Attendance rates at Bishop's Diocesan Council loo% 90% 80% 70% 60% 50% 40% 30% 20% io% January Mav ptember December Attendance rates at Diocesan Synod In Jitendance ¥ In attendance Absent Absent March 2023 October 2023 Governance Update 2023 The first half of 2023 witnessed an important innovation in the governance of the Diocese, as well as significant decision-making in two policy areas in particular. In respect of the former, on I" january new arrangements arising from the Diocesan Boards of Education Measure were brought into effect such that the functions of the Diocesan Board of Education, as specified in the Measure, weTe delegated to a new committee of the Dioces3n Board of Finance. operating under clear terms of reference, called the Diocesan Board of Education Committee. 27 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Staternents For the year ended 31 December 2023 STRUCTURE AND GOVERNANCE Icontinuedl Governance Update 2023 Icontinuedl In terms of policy development, the Diocesan Synod approved for the fiist time a Diocesan Racial Justice Charter and Strategy and in 50 doing it started on a journey to implement the recommendations of the national report 'From Lament to Action.. It also approved a series of commitments and long-term strategic targets relating to the achievement of Net Zero Carbon that will be in delivery for the best part of a decade. Heading into the second half of the year, governance work was strongly impacred by the retirement of Bishop Robert. which triggered a wide range of statutory processes and activated the work of the Vacancy in See Committee. The members of the Committee, supported by a wide range of DBF staff, undertook consultations, drafted the required Diocesan Statement of Needs and elected representatives to the Crown Nominations Commission, that would uPtim8tely be responsible for discerning the identity of the nemt Bishop of Exeter. Decision makin8 Structure Corporate priorities and the overall h'nanci31 strategy for the Oiocese. to support its primary object to promote, assist and advance the work of the Church of England within the Diocese of Exeter are set by the Diocesan Synod and EDBF. The responsibility for ensuring that these prioritie5 and strategies are delivered is delegated to the Diocesan Secretary. EDBF meets once a year in general meeting to receive and approve the annual report and financial statements and to appoint the auditors. The Diocesan Synod each year receives and agrees the annual budget, prepared and approved by EDBF. The trustees. meeting within the context of the Bishop'5 Diocesan Council, hold up to six meetings during the year to formulate and coordinate policies on mission. ministry and finance by.. Initiating prop05a15 for action by the Synod and advising it on matters of policy. Transacting business of the Synod when it is not in session subject to the directions of the Synod and in accordance with Synod Standing Orders; Acting a5 the trustees of EDBF,- Planning the busine55 of the Synod. preparing the agenda for its session, and circulating to members information about matters for discussion,. Advising the Bishop on any matters he may refer to the committee,. Initiating consideration of any restrtjcturing of Committees and Departments which may appear necessary and for the establishment of ad hoc review groups, their terrn5 of reference and membership.. Carrying out such other functions as the Synod delegates to it,. and Appointing members to committees and representatives to external bodies, subject to the direction of the synod. 28 The Emeter Diocesan Board of Finance Limited Annual Report & Con501idated Financial Statements Forthe year ended 310ecember 2023 STRLICTURE AND GOVERNANCE (continued) Decision making structure Icontinuedl other than the Board's Standing Committee, which may make urgent deci5ion5 on behalf of the Board between meetings and has responsibility for 5tèffing and personnel matters, EDBF has the following sub committees. each of which have written terms of reference.. Assets Group This Group has re5pon5ibility for monitoring all dioce$3n income and expenditure and the investment and protectiorb of assets. The Bishop's Strotegy Group This Group comprises the Bishop's Staff Team, the Chairs of both the House of Clergy and Laity, the Chair and Vice Chairs of the Board of Finance and members of the Senior Management Team. who attend as required, depending on the subject matter. The Group has a strategic focu5 and the subjects discussed are in line with the Diocesan Vision & StiateEY. The Group's decisions will be directed by the Board and Bishop's Diocesan Council in accordance with the policies agreed by the Diocesan Synod. The Group is also responsible for considering and advising the Board on key financial considerations and the annual budget setting process. In addition to these Sub-committees EDBF is assisted in its work by the following other committees.. Exeter Diocesan 8oord of Educotion The Board has a responsibility to promote or assist in the advancement of edvcation, which is consistent with the faith and practice of the Chu¥ch of England, and in the promotion and assistance of religious education and religious worship in schools. In our 134 Church of England schools. of which 78 are academies and $6 are maintained schools126 Voluntary Aided and 30 Voluntary Controlledl, the Board has a responsibility to assist and advise governors on matters affecting church schools. and to promote co-operation between the Board and others involved with education in the Diocese. As Part of this. the Diocese is keen to ensure the Christian distinctiveness of all Church of England schools is protected and enhance5 their community. Under the Diocesan Boards of Education Measure 2021, the 08E became a formal sub-committee of the OBF from l January 2023. Parsonoges Committee This committee, which has the same membership as the Assets Group, is responsible for determining policy and making major decisions concerning the management of parsonage houses in each benefice, including setting policy for buying. repairing, rnaintaining and any disposal of par50nage houses, team vicarages and houses owned by EDBF. There are four archidiaconal parsonage comrnittee5 which exercise delegated powers for the day-to-dav decisions on clergy housing. 29 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRucfuRE AND GOVERNANCE (continued) Decision making structure Icontinuedl Glebe Committee This committee, which has the same rnembership as the Assets Group, is responsible for determining policy and making decisions concerning the management of 6lebe property and investments for the benefit of the diocesan stipends fund. Dioceson Mission ond Postor(yl Committee This committee, which has the same membership as the Bishop's Council and Standing Comniittee and the trustees of EDBF. is responsible for the reorganisation of parishes, benefices, church buildings, deaneries and archdeaconries, taking a¢count of available clergy umbers and making use of new patterns of ministry. Diocesan Advi50ry Committeefor the Core of Churche5 This committee advises on matter5 affecting churches and places of worship such as the granting of faculties, architecture, archaeology, art and the histofy of places of worship. the use and care of places of worship and theEr contents and the care of churchyards. Exeter Dioceson 8oorrJ of Potronoge The Board is constituted vnder the provisions of the Patronage18eneficesl Measure 1986 and 15 501e patron or joint patron of a number of benefices. Church Building Strotegy Committee This committee carries O*Jt statutory functions with regard to churches, which either have been closed for regular worship, or where that option is being considered. Vo¢oncy in See Corrtmittee This committee under the Vacancy in See Regulations 1993 las amended) assume5 certain responsibilities in the event of a vacancy in the post of diocesan bishop. Diocesan Synod The Diocese of Exeter has its origins in the creation of 3 diocese for Devon in 909AD and took broadly its present form in 1877 when the Diocese of Truro was created as a separate diocese. The ecclesiastical boundaries of the Diocese equate èlmost exactly to the county of Devon, which covers an area of 6,707 square kilometre512.589 square miles). Devon is predominantly rural, with two major moorland areas, but also includes the two cities of Plymouth and Exeter and the urban area of Torbay. The overall resident Population of the county is more than 1.2 million, with the north and 50Uth coastal areas attracting many tourists in the summer months. 30 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRUCTURE AND GOVERNANCE Icontinuedl Diocesan Synod l¢ontinuedl The governance of the Diocese provides for elected clergy and lay members alongside the Bishop in Diocesan Synod, which a150 includes ex-officio members such ès Suff ragan Bishops, Archdeacons and thÈ Dean, as well as co-opted members appointed for their skill or experientè. Diocesan Synod Is presided over by the Diocesan Bishop. It5 role is to.. Consider matters affecting the Church of England in the Diocese,. Act as a forum for debate of Christian opinion on matteTS of religious or public intere5t,' Advise the Dio¢es3n Bishop where requested; Deal with matters referred to it by General Synod. and Provide for the finances of the Diocese through EDBF. At archdeaconry and deanery lèvels The Diocese consists of 482 parishes arranged into 21 deaneries within the four archdeaconrie5 of Exeter. Totnes. 8arnstaple and Plymouth. Within these parishe5 there ar 594 Church of England places of worship in the Diocese. the 4th highest number in England. Each deanery has a Synod consisting of a house of clergy and a house of laity. The Synod is chaired jointly by the Lay Chair, elected by the lay members from among their number, and the Rural Dean. who is appointed by the clergy and commissioned by the Diocesan 8ishop. The role of the Deanery Synod is to.. Give effect to the decision5 made by Diocesan Synod,. Consider matters affecting the Church of England by drawing together the views of the parishe5 Within the deanery,. Act as a channel of communication to express the views of parishes to Diocesan Synod and thence to General Synod.. Raise with Diocesan Synod such matters ès it considers appropriate; and Elect members of the deanery to Oiocesan Synod and of the Diocese to General Synod. Mission Communities Whilst Mcs are a central part of the structure and governance of the Diocese, they are not of themselves legal entities. Mcs will vary from place to place, but will usually involve 150 or more worshiping adults, together with children and young people, in order to form a critical mas5. The commitment to work together may be formalised as a united benefice, as a single parish. a5 a team ministry, or be expressed through a1005er partnership. Each MC is encouraged to have a Mission Community Action Plan. This shoLLld be 3 working document which helps the local church look outward5, to grow in prayer. to make new disciples and to Serve the people of Devon with joy. 31 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 STRUCTURE AND GOVERNANCE (continued) At a parish level Each ecclesiastical parish has a PCC, whose members include the local parochial clergv, locally elected members of the Diocesan and Deanery Synods, the Churchwardens, a number of elected representatives and, possibly. a small number of co-opted members. Its members are trustees and therefore have trustee responsibilities. Under current charity law, PCCS with an income of under £IOO,000 a year are classified a5 harities but are currently excepted from registration with the Charity Commission. PCCS with an income in excess of £IOO.000 in any year are required to register as charities with the Charity Commission. The financial transactions and balances of PCCS are not reflected in these financial statements. Exeter Cathedral The Cathedral is the seat of the Bishop and a centre of worship, teaching and mission. It has ts own separate legal charitable constitution and prepare5 Its own financial statements, copies of which may be obtained from the Cathedral Office, l The Cloisters, Exeter, EXI IHS. Exeter Cathedral does not form part of EDBF group for accounting purposes. Trustee recruitment, selection and Inductlon Trustees are members of the Bishop's Council & Standing Committee and are selected as set out above. Trustees are given induction at the beginning of each three-year term Itrienniuml and at other times as appropriate. They are a150 informed before seeking membership and, at all other relevant times, of the role and function of the Committee. Some staff hold the title of 'Directorf, but this relates to their function within the organi5ation and has no legal meaning within the terminology a5$0ciated with the Companies Act. All trustees are required to sign the code of practice and maintain their entry in the record of declarations of interest. Standing Committee of the Exeter Diocesan Board of Finance Emolument5 of senior emplDyee5 are determined by the Standing Committee of the Bishop's Council, ton5iSting of the Chair of EDBF, the Diocesan Secretary Inon-votingl. and up to four other Directors (normally the Chair5 of the House5 of Clergy and Laity or their deputies, plus one further member elected by EDBFI. The terms of reference for this group is established by the Bishop's Oiocesan Council and include.. agreeing the annual increases in 5alarie5 for all lay staff.. considering and determining changes in the grading of any lay staff,. to respond to requests from staff to alter working hours. levels of responsibility or other element5 of their employment contract. to make recommendations regarding staffing levels. needs or problems in any area,. to asses5 options and proposals for structural thanges in the way in which EDBF operates,. and to take decisions on behalf of ED6F on matters which must lje decided urgently and for which it is impossible for the normal processes to apply. 32 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 STRUCTURE AND GOVERNANCE Icontinuedl Delegation of day-to-day delivery The trustee5 and the sub-committees which assist them in the fulfilment of their responsibilities, rely upon the Diocesan Secretary and his colleagues for the delivery of the day-to-day activities of the company. The Diocesan Secretary 15 given specific and general delegated authority to deliver the business of EOBF in accordance with the polities framed by the trustee5. Funds held as Custodian Trustee EDBF is custodian trustee of asset5 held on permanent trust by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens ITrustsl Measure 1964 where the managing trustees are PCCS and others. These a55ets are not aggregated in the financial 5tatemerbt5 as they do not form part of EDBF'S assets. They are segregated from EDBF'S own assets in separate bank and Investments accounts and are accounted for separately. Fvrther details of financial trust assets, whose market value amounted to £22.6m at 31 December 202312022". £21.8ml, are available from EDBF on request, and are summarised in note 29. Where properties are held as custodian trustee, the deeds are identified as such and held in safe custody by EDBF'S solicitor, Stephens Scown LLP. Funds held on behalf of schools The Board of Educ3tion las incorporated within EDBFI receives contributions from governors of church schools within the Oiocese in connection with major repaii and capital projects to church schools and also government grants in connection with the same. The Board of Education administers these monies as managing agent and makes appropriate payments to contrartors for work carried out. The monies do not belong to the Board of Education and as such the receipts and payments are not treated as income and expenditure in the Statement of Financial Activities. Any monies held at the balance sheet date are treated as creditors on the balance sheet. The amounts included in creditors as at 31 December 2023 were.. £599.00012022.' £706,000) received from governors and the Department for Education in advance of repairs and improvements to schools. held in the general bank account,. and £391,00012022.. £613,000) held In a separate CCLA deposit account on behalf of the governors of Church of England schools in respect of building funds devolved from the Department for Education. The income and expenditure re13ting to school projects not reflected in the Statement of Financial Activities amounted to £1.8m and £1.7m respectively in 202312022.. £2.4m and £1.5ml. The Excess of income over expenditure in the year Is due to the timing of receipt of funding Imainly in advance) for school capital projects. 33 The Exeter Diocesan Board of Finance Limited Annual Report & Con501idated Financlal Statements For the year ended 31 December 2023 TRUSTEES, RESPONSIBILITIES The trustees (who are also directors of ED8F for the purposes of company lawl are responsible for preparing the Tru5tees' Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company13w the trustees must not approve the financial statements, unless they are Satisfied that they give a true and fair view of the state of affairs of the group and parent charitable company and of the incoming resources and application of resources, including the income and expenditure, of the group and parent charitable company for that period. In preparing these financial statements. the trustees are required to.. Select suitable accounting policies and apply them consistently., Observe the methods and principles in the Charities SORP 2019 IFRS 1021,. Make judgement5 and estimates that are reasonable and prudent,. State whether applicable UK Accounting Standards have been followed; and Prepare the fInanc￿al statements on the going concern basis vnle5S It is inappropriate to presume that the group and parent charitable company will continue in operation. The trustees are responsible for keeping 3dequ3te accotjnting records that disclose with reasonable accuracy at any time the financial position of the group and parent charitable company and enable them to ensure that the financial statements comply with the Comp3nie5 Act 2006, They are also responsible for 5afegLtarding the assets of the grtsup and parent charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irreg*Jlarities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the group and parent charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. STATEMENT OF DISCLOSURE TO THE AUDITORS In 50 far as the Trustees are aware= al There is no relevant audit information of which ED8F's auditor is unaware.. arsd bl The Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that EOBF'S auditor is aware of that information. APPOINTMENT OF AUDITORS The re-appointment of Bishop Fleming LLP as auditors to EDBF will be proposed at the Annual General Meeting. 34 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 ADMINISTRATIVE DETAILS Trustees The trustees and directors of EDBF are either ex-ofFicio, nominated, elected or appo*nted as detailed in the standing orders of Exeter Oiocesan Synod, a copy of which can be inspected at EDBF'S registered off ice. The following were directors throughout the year lunless otherwise 5tatedl- Ex officio The Rt Rev Robert Atwell, Lord Bishop of Exeter (until 30 Septernber 20231 rhe Rt Rev Jacqueline Searle, Acting Bishop of Exeter and Bishop ol Crediton The Rt Rev James Grier, Bishop of Plymouth The Ven Jane Bakker, Archdeacon of Plymouth (from 13 June 20231 The Ven Andrew Beane. Archde3con of Exeter The Ven Verena Breed, Archdeacon of 8arnstaple The Ven Douglas Dettmer, Archdeacon of Totnes The Ven Nicholas Shutt, Archdeacon of Plymouth (until 30 April 20231 The Very Rev Jonathan Greener, Dean of Exeter The Rev Preb Michael Partridge (Chair, House of Clergy) Mr Giles Frampton (nominated by the Bishop as Chairl Mrs Annie lefferies (Chair. House of Laity) Appointed by the Bishop Mrs Laura Ford Dr Lystr3 Hagley-Dickinson (from 20 lune 20231 The Rev Tanya Hockley-still (from 22 May 20231 Mr Robert Mills (Vice Chairl The Rev Samantha Stayte The Rev Canon Dr Michael Williams IVi¢e Chairl Dr Michael Wykes Elected by Burnstople Archdeoconry Mr Nigel Price The Rev Rosie Austin (from 28 June 20231 Elected by Exeter Archdeuconry Mrs Antoinette Foreman The Rev Edward Hobbs Mr Keith Rushforth Elected by Plymouth Arrhdeoconry The Rev Andrew Atkins Mr Michael Jefferies Mr julian Payne luntil 22 November 20231 Elected by Totnes Archdeoconry Ms Hannah Dunn (until 8 May 20231 The Rev Peter March Mr Stephen Macey 35 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 ADMINISTRATIVE DETAILS (continued) Senior staff and advi5er5 Diocesan Secretary Assistant Diocesan Secretary Dirertor of Mission & Ministrv Dirertor gf Mission & Mini5trv Director of Education Director of Finance and Cornpany Secretary Director of People & Safeguarding t)irector of Property Director of Communications Strategic Programme Manager Operations Manager Stephen Hancock Ed Moffatt Philip Sourbut luntil 30106120231 lan Bussell (from 02105120231 Sue Lockwood Neil Williams Anthea Carter-savigear Graham Davies Chloe Axford Rafael Kra5nodebski Annemarie Kendell Registered Office., The Old Deanery The CloistÈrs Exeter. EXI IHS Bankers.. N3tWest Bank plc 59 High Street Exeter. EX4 3DP Auditors.. Bishop Fleming ILP Chartered Accountants Statutory Atjditors 2nd Floor, StratU5 House, Emperor Way, Exeter Busine55 Pèrk Exeter. EXI 3QS Solicitors.. stephens Scown LLP Curzon House Southernhay West Exeter. EXI IRS Investment advisers.. CCLA Investment Management Ltd One Angel Lane London. EC4R 3A8 Insurance brokers.. P18 Insurènce 8rokers Poppleton Grange Low Poppleton Lane York. Y026 6GZ Main Insure¥s'. Ecclesiastical Insurance Group plc Montpellier House Montpellier Gloucester. GLI ILF 36 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 310ecember 2023 AOMINISTRATIVE DETAILS {tontinuedl The directtsrs and trustees of the Board's subsidiary undertakings who served throughout the year (unless otherwise stated) were as follow5.. DIRECTORS OF EDPS LIMITED Mr Giles Frampton (Chairl Mrs Jan Kelihe¥ The Rev Canon Dr Michael Williams Mr Neil Williams In approving this Annual Report (pages 3- 371, the trustees are also approving the Strategic Report included on pages 4- 25 within thei¥ capacity as company directors. BY ORDER OF THE T STEES Giles FTampton Chair 16 Ivly 2024 Michael William5 Vice Chair 37 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF THE EXETER DIOCESAN BOARD OF FINANCE LIMITED We have audited the financial statements of the Exeter Diocesan Board of Finance Limited (the 'parent charitable company'l and its subsidiaries I'the group'l for the year ended 31 December 2023 which comprise the Consolidated statement of the financial activities. the consolidated income ènd expenditure account, the con501idated and EDBF balance sheets, the consolidated cashflow Statement and notes to the financial statement5, including a Summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable13w and United Kingdom Accounting Standards, including Financial Reporting Standard 102 rhe Finonciol Reporting Standard opplicable in the United Kingdom ond Republic of Irelond (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: Give a true and fair view of the state of the group's and the parent charltable company's affairs as at 31 December 2023, and of the groups incoming resources and application of resources. including it5 income and expenditure, for the year then ended.. Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and Have been prepared in atcordance with the requirements of the Companies Art 2(J)6. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities L¢nder those standards are further described in the auditorfs responsibilitie5 for the audit of the finant*al statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that afe relevant to our audit of the financial Statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we hève obtained IS SLtfficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern b35is of accounting in the preparation of the financial statement$ 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the Eroup's or parent charitable company'5 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for 1$5ue. Our ￿sponsIbl$[rIeS and the responsibilities of the trustee5 Wlth respect to going concern are described in the relevant sections of thi5 report. 38 The Exeter Dioce53n Board of Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 December 2023 INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE EXETER DIOCESAN BOARD OF FINANCE LIMITED (continued) Other information The other information comprises the information included in the annual report and COll501idated financial statements, other than thè financial statement5 and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report and consolidated financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not expres5 any form of assurance conclu510n thereon. Our responsibility 15 to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial st3tements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material m15Statements, we are required to determine whether this gives rise to a material m155tatement in the financial Statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infc>rmation, we are required to report that f3ct. We have nothing to report in thi5 regard. Opinions on other matters prèscribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. The information given in the trustees, report lincorpor3ting the strategic report and the directors. report prepared for the purposes of Company Lawl for the financial year for which the financial statements are prepared Is consistent with the financial statements., and The strategic report and the directors, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and parent charitable company and Its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the directors. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. Adequate accounting records have not been kept by the group and parent charitable company, or returns adequate for our audit have not been received from branches not visited by us., or The group and parent charitable company's financial statement5 are not in agreement with the accounting records and returns,. or Certain disclosures of director5. remuneration specified by13w are not made." or We have not received all the information and explanations we require for our audit. 39 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF THE EXETER DIOCESAN BOARD OF FINANCE LIMITED lcontinuedl Responsibilities of trustees As explained more fully in the Tru5tees' Responsibilities Statement set out on page 34, the trustees (who are also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the financi315tatements and for being satisfied that they give a true and fail view. and for such internal control as the tiustees determine is necessary to enable the preparation of financial statement5 that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and parent charitable CoMpan￿S ability to continue as a going concern, di5closin& as applicable, matters related to going concern and using the going concern basi5 of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Auditoes responsibilities for the audlt ol the financial statements We have been appointed auditors under the Companies Act 2006 and report in accordance with this Act. Our objectives are to obtain reasonable assurance about whether the financial statements as whole are free from material mi5Statement. whether due to fraud or error. and to Issue an auditols report that includes our opinion. Reasonable assurance is a high level of assurance but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material rnisstatement when it exists. Misstatement5 can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularitie5. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedure5 for this engagement and the extent to which these are capable of detecting irregulaiities, including fraud is described below: We have considered the nature of the sector, coritrol environment and financial performance of the group and parent charitable companv,. We have considered the results of enqvirie5 Wlth management and Directors in relation to their own identification and assessment of the risk of irregularities within the group and parent charitable companv,. 40 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 INDEPENDENT AUDITORS. REPORT TO THE IIIEMBERS OF THE EXETER DIOCESAN BOARD OF FINANCE LIMITED Icontinuedl Auditor's responsibilities for the audit of the financial staternents Icontinuedl We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the system5 are operating in line with documentation,. and We have considered the matter5 discussed among the audit engagement team regarding how arid where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisations for fraud and identified incorrect revenue recognition to be a significant risk. In common with all audits under1SA5 IUKI we are also required to perform Specific procedures to respond to the risk of management override of controls, including through the use of journal entries, this being a further significant risk. We have also obtained understanding of the legal and regulatory frameworks that the group and parent charitable company operate5 in, focusing on provisions of those laws and regulations that had a d*rect effect on the determInat￿On of material amounts and disclosures in the financial statements. Thè key law5 and regulations we considered In thi5 context included the UK Companies Act, Charities Atts, Church Measures, FR5 102, the Charities SORP and tax legislation. In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Eroup and parent charitable company's ability to operate or avoid 3 material penalty. These included employment and health 8nd safetv legislat>on. Our procedures to respond to risks identified included the following.. Reviewing the financial statement disclosures and testing to supporting documentation to aS5e55 compliance with provisions of relevant laws and regulations described as having a direct effect on the financial st3tements,' Performing analytical procedures to identify unusual or unexpected relationships that may inditgte risks of material misstatement due to fraud,. Reviewing minute5 of Bishop's Diocesan Council meetings,. Enquiring of management and those charged with governance in relation to actual and potential claims or litigations-, Reviewing the financial statements disclosures and testing to 5vpporting documentation to assess the recognition of revenue,. and In addressing the risk of fraud through management override of controls, testing the appropri3tene55 of journal entries and other adjustments,. assessing whether the judgements made in accounting estimates are indicative of potential bias." and evaluating the business rationale of significant transaction5 that are unusual or outside the norm31 course of business. 41 The ExeteT Dlocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE EXETER DIOCESAN BOARD OF FINANCE LIMITED (continued) Auditorfs responsibilities for the audit of the finan¢ral Statements Icontinuedl We also communicated identified law5 and regulations and potential fraud risk5 to all members of the engagement team and remained alert to possible indicators of fraud or non- compliance with laws and regulations throughout the audit. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial Statements or non-compliance with regulation. This risk increase5 the more that compliance with a law or regulation is removed from the events and transactions reflected In the financial statements, as we will be less likely to become aware of instances of non-compliènce. The fisk is 3150 greater regarding irregularities occurring due to fraud rather than error, as fraud invoSves intentional conce3lment. forgery. collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financi315tatements is located on the Financial ReportinÉ Council's website èt.. www.frc.org.uk/auditorsresponsibilitie5. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken 50 that we might state to the charitable companty5 members those matters we are required to State to them in an auditorfs report and for no other purpose. To the fvlle5t extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and group and its members as a body, for our audit work, for this report, or for the opinions we have formed. Craig Sullivan FCCA (Senior Statutory Auditor) For and on behalf of.. Bishop Fleming LLP, Chartered Accountant5 & Statutory Auditors 2nd Floor, Stratus House, Emperor Way. Exeter BiJsine5s Park, Exeter, EXI 3QS 14 fvJJ- "L 42 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 CONSOLIDATEO STATEMENT OF THE FINANCIAL ACTIVITIES For the year ended 31 December 2023 Unrestrlcted funds General Oesienated £'ooo £'ooo ftestrscted Fund5 £'ooo Endowment Funds £'ooo Total tunds 2021 E'OC Toial lunds 2022 E'O(KJ Note Income and endowments from Donations Parish contributions Archbishop's Countil Other donation5 8,485 15 171 711 1.411 608 1,237 8,485 1,667 1,530 780 1,411 1,597 1.681 8.624 1,971 1.220 754 L,492 1.503 2.231 1.652 1.359 69 Investtnenis Other 988 444 Total income and endowrnents 12,638 4,CK58 444 17,151 17,795 Expendtture on Costs of raising funds 176 13,338 72 3,813 248 17,259 283 16.294 108 Total expenditure 13.514 108 3,885 17,507 16.577 Net incomellexpenditurel before InveslrnÈnt Ealns 18761 11071 183 444 13561 1,218 Net Eain/l10551 on investments 16 1,229 li 3,516 5,036 5,936 Net incomelltxpetiditurel 353 1961 463 3,960 4,680 7.154 Transler5 between lunds 13 630 11,1901 693 Net rno¥ement in fund5 983 11,2861 330 4.653 4.680 7.154 Total funds brou¥hi forward 7,210 22,803 5.314 86,838 122,165 115,011 Total funds ¢arried forward 20 8,193 21,517 5.644 91,491 126.845 122,165 All activities derive from continuing activities. The notes on page5 48 to 92 form p3rt of the financial statements. 43 The Exeter Diotesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 Forthe year ended 31 December 2023 CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2023 Toial 2023 £'ooo Total 2022 Total incomlnE resour¢es Resourees expended 16.707 117.5071 16,442 116.5771 Operatins surpluslldeficitl forthe year 18001 11351 Net gainll10551 on investments 1,520 11,7291 Net income lorthe year 720 11.8641 oiher comprehensive i#¢orr5È= Net a55etS transferred Itoljfrom endowments 16931 14791 Totsl comprehenswe income 27 12.3431 The income and expenditure accotjnt is defived from the Statement of Financial Activities with movements in endowment fund5 excluded to comply with company law. All income and expenditure is derived from continuing activities. 44 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 CONSOLIDATED AND EDBF BALANCE SHEETS At 31 December 2023 Compony Nurnber-186001 2023 2022 Ncte Group EDBF Group ED8F f'o FIXEDASSET5 Intangible A55etS Tongible 05sets Investments 14 15 16 39 57,698 61,461 39 57.698 61,461 59 58,828 61,570 59 SB,828 61,570 Totolfixedussets CURREAIT ASSET5 Debtors Cosh on deposit Cosh otbunk Gnd in hund 119,198 119,198 120.457 L20.457 17 1.904 35 8,848 1,992 35 8.737 1,678 34 3,492 1,842 3,284 Totolcuirent ossets 10.787 10,764 5,2D4 5,160 CREoifoRS.' um(wnt5falling dtse wfthin ont yeor 18 12.3541 12,3401 12,3101 NEfcuRRENT ASSET5 8,433 8.424 2,894 2,885 TOTAI ASSEfs LE55 CURRENT LJA81LITIES 127,631 127,622 123,351 123,342 CREDITORS.. vmDuhtsfvlling dve ofterone yeor 19 17861 17861 11,1861 11,1861 TOTAL NET A55ET5 126.845 126,836 122,165 122,156 FUNDS Endowmentfvnds Ilncludinq inve5tmenr revtsluotion reserve o E34,222k12022." E31,902kll Restricted incomefvnds Ilncluding investment revoltsotion reserve o EI.403k12022. £J,123k)I UnrestrictEd incomeAunds.- GenErolFund5 Ilncludittg investmenr revaluation reseNe of£3,273k 12022.. E3,121kll Designated Funds Ilncluding investment revaluLTtion reserve of (E8kl12022.. £3kJ rroding subsidiory 91.491 91,491 B6,838 86,838 5.644 5,644 5.314 5,314 8.184 8,184 7.201 7,201 21.517 21.517 22,803 22,803 roTAL CHARITYFUNDS 21 126,845 126.836 122,165 122,156 45 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 CONSOLIDATED AND EDBF BALANCE SHEETS Icontinuedl At 31 Decembey 2023 The Cash Flow Statement and the notes on pages 48 to 92 form part of these financial 5tatement5. The financial statements were approved by the Board of Trustees and authorised for issue on 16 july 2024 and signed on behalf of the Board by.. Giles Frampton Chair of the Board 46 The Exeter Diotesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 De¢ember 2023 2023 2022 £'o(x) eofr) Net cosh inllow/(outflDwJ/rom operot1119 Arti¥ities 15.0201 13,0121 Coshllowsfrom investing octivtties Dividends. Interest ondrentfrom inve5tmertts Proieedsfrom the5LTle of." Tangiblefixed GssEtS Fixed ossetinvestmenrs PurchGse 0]." Tongiblefixpd ossetsfor the use of th8 EDSF Fixed ossetinvEstments Z.852 2,726 3,151 3,339 456 11.3951 Ne¢ cash pmvidedby/lused inl investing Activities 10,793 4,834 Coshflowsfromfinoncing octivitres Loan5 reptsidby the ED8F New lending by EDOf Loons repuid to EDSF 14341 14341 33 120 Ner cosh pmvlded&y/lusedNnJfinontilJ9 ActivIt￿$ 14161 Cht7nqe in rosh tynd wsh equivolents in the reportirtgperiod C05h ondcash equivalent5UtI Januory 5.357 3.526 1,447 2,079 tosh andcush equivolent511t31 De￿rn￿er B,883 3.526 Reeonclllotion olnet thcome/{expenditurel ￿￿Ore Investmerttgt71ns to netCa5hflowlrom opemtt*Jg ttctivities Ne¢ bJromÉ/lexpeftditureJ before irtvestmento4ins fvr the yet7rended31 December Adjustménts/or.' Depreciotion/omoflisotion charge5 Dividends. Intere5trGndrentfrom investrnent5 Surplus/ldefv'citl on Sale olfunctiontsl ossets Decreose/lincretssel in debtors (DecreG5el/incre05e in creditors 13561 1,218 48 40 12,7261 11,6811 457 130 45 Aletcush provllfedty/{usedin) opemting octsvities 15.0201 13.0121 Anulysis of wsh ttrtdcosh equivalent5 Cosh in hand Notice deposits Iless rhon 3 monthsl 8.848 35 3,492 34 8.883 3,526 47 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 I. ACCOUNTING POLICIES The financi31 statements have been prepared under the historical cost convention, with the exception of fiyed a55et investments. which are included at their fair value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities ISORP 2019 IFRS 10211, the Companies Att 2006 and pplicable accounting standards IFRS 1021 (effective l January 20191. EDBF meets the definition of a public benefit entity under FRS 102. It is a company limited by guarantee and is constituted under a memorandum and articles of association. The company is also a iegistered charity. The address of the registered office is given in the administrative details on page 36. The nature of the charit¢5 operations and its principal activities ale set out in the annual repolt. These financial statements consolidate the results of the company and its wholly owned subsidiary15ee Note 331 on a line-by-line basis. A separate Statement of Financial Activities and income and expenditure account for the company has not been presented because the company has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The pr￿nciPal actounting policies and estimation technique5 are a5 follow5.. a) Income All income is included in the Statement of Financial Activities ISOFAI when EDBF is legally entitled to the income or capital respectively. ultimate receipt is more likely than not and the amount to be recogni5ed can be quantified with reasonable accuracy. il Common Fund (Parish contributlons} is recognised as income of the year in respect of which it is receivable. with a ctjt-off date of 29 February 2024 for the 2023 year. ill Rental income 15 brought into the accounts when receivable. iiil Inteyest and dividends are recognised as income when receivable. iv) Grants received which are subject to pre-conditions lor entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year. vl Statutory Parochial fees are recognised as income of the year to which they relate with a cut-off date of 29 February 2024 for the 2023 year. vil Donations other thèn grant5 are recognised when receivable. vill Galns on disposal of fixed assets for the EDBF'S own use li.e. non-investment asset51 are accounted for as other incoming resources. Losses on disposal of such assets are 3ccounted for as other resources expended. 48 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 I. ACCOUNTING POLICIES Icontinuedl bl Expenditure Expenditure is included on the accruals basis and has been classified under headings that aggregate all c05ts related to the Statement of Financial Activity categorv. il Expenditure on raising funds is tonstrained to costs relating to the investment management costs of glebe and any other Investment properties and the running costs of EDPS Ltd, EDBF'S trading svbsidiarv. ill Charitable expendlture is analysed between contributions to the Archbishops, Council, expenditure on resourcing mission and ministry in the parishes of the Diocese, and expenditure on education and Church of England schools in the Diocese. Iiil Grants payable are charged in the year when the offer is conveyed to the recipient, except in those cases where the offer is conditional and there are no conditions at the discretion of EDBF. such grant5 being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to Such conditions which have not been met at the year-end are noted as a commitment, but not accrued a5 expenditure. iv) Support costs consist of central management. administration and governance Costs. The amount spent on raising funds and other activities 15 considered to be immaterial and all support costs are allocated to the purpose of charitable activities. Costs are allocated wherever possible directly to the activity to which they relate, but where such direct allocation is not possible, the remèinder is allocated on an approximate staff time basis. vl Pension contributions. ED8F's staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pension Scheme15ee note 271. The pension costs charged as resources expended represent EDBF'S contributions payable in respect of the accounting period, in accordance with FR5102. Deficit funding for the multi-employer pension schemes to which EOBF participates is accrued at current value in creditor5 di5tingui5hed between contribution5 f311ing due within one year and after more than one year, with any adjustments required reflected in the SOFA. vil Redundancy and termination payment5 are recognised when EO8F i5 demonstrably committed either to terminate the employment of an employee or group of ernployees before the normal retirement date, or to provide termination benèfits as a result of an offer made in order to encourage voluntary redund3ncy. vill Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 49 The Exeter Diocesan Board of Finance Limited Annual Report & Con50Iidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023 I. ACCOUNTING POLICIES Icontinuedl cl Tangible fixed assets and depreciation Freehold properties Depreciation is not provided on buildings as any provision (annual or cumulativÈl would not be material due to the very long expected remaining kjseful èconomic life in each case, and because their expected residual value is not materially less than their carrying value. ED8F has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate 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 with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount. Propertftes subject to volue linked loons Properties which have been bought with the assistance of value-linked loans from the Church Commissioners are stated using the original value of the related loan at the balance sheet date. Investment properties ortd lond Glebe properties and land which are held for investment purposes and rented out have been included at their fair value. Porsonoge houses EDBF ha5 followed the requirements of FRS102. in its accounting treatment for benefice houses Iparsonagesl. FRS102 requiie5 the accounting treatment to follow the substance of arrangements rather than their strict legal form. EDBF is formally responsible for the maintenance and repair of such propertie5 and ha5 some jurisdiction over their future use or potential sale if not required as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incurnbent. The Trustees therefore consider the most suitable aciounting policy is to capitalise such properties as expendable endowment assets and to carry them at their historic cost value. dl Other tangible fixed a55ets All capital expenditure over £1,000 is capitalised and depreciated a5 follow5. Depreciation is provided in order to write off the cost Iless any ultimate disposal proceeds at prices wling at the time of the asset's acquisition) of other fixed assets over their ctsrrently experted useful economic lives at the following initial rates.. Motor vehicle5 Fixtures and fittings Equipment Telephone system Photovoltaic panels 25% per annum IO% per annum 25% per annum IO% per annum 4Yo per anntjm reducing balance ba51S straight line basis straight line basis straight line basis straight line basis 50 The Exeter Diocesan Board of Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 I. ACCOUNTING POLICIES Icontinuedl el Fixed asset investments are included in the balance sheet at fair value and the gain or loss taken to the Statement of Financial Activitie5. The investment in the subsidiary undertaking is valued at cost le55 any provisions for impairment. fl Leases. EDBF has entered only into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure the year to which it relates. Where rent free periods are given 85 part of an operating lease, the impact of this rent-free period is reflected in the Statement of Financial Activities over the shorter of the overall lease term or first break clause lif expected to be exercisedl whichever is shorter in time. l Debtors. Trade and other debtors are recogni5ed at the settlement amount due. Prepayments are valued at the amount prepaid. h) Cash at bank and in hand and cash on deposit. Cash at bank and in hand and cash on deposit includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening. il Creditors and provision5. Creditors and provisions are recogni5ed where the group and parent 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 be measured or estimated reliably. Creditors and provisions are normally recogni5ed at their settlement amount. }} Financial instruments. EDBF only has material financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initiallv recognised at transaction value and subsequently measured at their settlement value. kl Fund balances Fund Balances are split between unrestricted (general and designated), restricted and endowment funds. Unrestricted funds are EDBF'S corporate funds and are freely available for any ptsrpose within the charitèble company's object5, at the discretion of ED8F. There are two types of unrestricted funds.. General fund5 which EDBF intends to use for the gener31 purp05e5 of EDBF,. and Designated funds set aside out of unrestricted fund5 by ED6F for a purpose specified by the Trustees. Restricted funds are income funds subject to conditions imposed by the donor as specific terms of trust, or else by legal measure. 51 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 Detember 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 I. ACCOUNTING POLICIE5 l¢ontinued} Endowment funds are those held on trust to be retained for the benefit of the charitable company or group as a capital fund. In the case of the endowment funds administered by EDBF, there are discretionary powers to convert capital into income and, as a result, these funds are classified as expendable endowment. Endowment funds where there is no provision for expenditure of capital are classified as permanent endowrllent. Trusts where EDBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are surnmari5ed in the notes to the financial statements. 11 Preparation of the accounts on a golng Concern basis. Having undertaken a review, the Trustees have no concerns èbout the ability of EDBF to meet its liabilities ènd on that basis the company is a going concern. m) Si8nilicant a¢¢ountinB estimates. The preparation of the financial Statements requires management to make judgements, estimates and assumptions that 3ffect the amounts reported for assets and liabilities as at the balance sheet date and amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements lapait from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.. Revaluation of investment properties EDBF carries its investmeni property at fair value, with change5 in fair value being recognised in the Statement of Financial Activities. Commercial investment properties are revalued each year by an independent valuation specialist. Glebe property is revaltjed by an independent valuation specialist every five years. with annual review5 of fair value made by management with reference to appropriate indices, or to reflect any changes in the status of the property. Where appropriate, the valuation will reflect the development potential of individual glebe holding5. Pension and other post-employment benefits The liabilities in respect of defined benefit pension schemes and other pension related provisions are determined using actuarial calculations by an independent actuary. The Iculation5 involve making assumptions about discount rates, future salary increases, mortality rates and future pension incre3se5. L>epreciation of freehold properties The board does not depreciate its freehold properties as it judges any depreciation charge to be immaterial on the basi5 of the long life of the asset and high residual value on the basis of the board policy of regular maintenancè. The board carrie5 Out an annual impairment review. 52 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial 5tatementS For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 I. ACCOUNTING POLICIES Icontinuedl Beneficè houses recognition Benefice house5 are legally vested in the incumbent of the benefice. However, the board recognises these as functional assets of the board on the basis that the board carrie5 both obligations in terms of maintenance 2nd improvement and benèficial entitlements of ownership. DONATIONS Parish Contributions The majority of donations are collerted from the parishes of the Diocese through the common fund system. Unrestrirted funds General Designated É'ooo £'OOD Re5tflrted Endowment Total funds Fund5 Fund5 2023 £'ooo £'ooo Total funds 2022 £'o Current Year a55essmenis 9,021 9,021 8,958 14821 8.393 8,393 8.476 Receipt5 for previous vear5 Receipts for furure year5 9Z 92 136 12 Tot31 Iniome 8,485 8,485 8,624 Current year common fund receipts represent 93.04% of the total agsessed12022.. 94.62%1. Archbishop's Council Unrestrirted fund5 Restrlcted Endowmeni Total fund5 Total ltsnds 2022 E'O General Oesignated Funds £'ooo Funds £'ooo 2023 £'ooo £'ooo Lowest Income CoTnmuniiies Fundin8 Strategic Ministry Funding Parish Energy Support Granr Capaciry Grant Net Zero Carbon Gr3nt 1,204 420 1.204 420 1,190 318 463 18 io 18 25 15 15 1,652 1.667 1.971 The Lowest Income Communities Funding is the annual grant for either supporting specific parish mission 3nd development projects or for clergy stipends. 53 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Finantial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATEO FINANCIAL STATEMENTS l¢ontlnuedl For the year ended 31 December 2023 DONATIONS Icontlnued) Other donations and grants Total funds 2022 Unre5trirted funds Genoral De￿&￿ated £'o(K) E'ooo Re$trltted Funds eooo Endowfflent Funds £'ooo Total lunds 2023 £'ooo Benefact Trust Le28cies Cltheruonations and grants Resourcing Ministerial Education 129 129 147 42 1.201 158 1,243 158 800 273 171 1.359 1,530 1,220 The other donations and grant5 figure above includes the following.. Strategic Development Funding l£1.012kl.. Diocesan Investment Programme Funding1£189kl and Other giants1£42kl. 3. CHARITABLE ACTIVITIES Total lunds 2023 £'OfNI Totsl tunds 2022 £'oc4J Unrestrlcted fvnds General Designated £'o(x) £'ooo e5tricted Funds Endowrnent Funds £'OOD Statutory fees Chapl3inry income Feed inlExport Tariff5 PV pane15 Courseltraining fees Miscellaneous income 606 606 66 604 73 57 44 26 26 44 26 38 Z2 24 31 12 711 69 780 754 OTHER TRADING ACTIVITIES Total funds 2023 É'o Total fund5 2022 £'ooo Vnre5tricted fvnds Genefal Designated £'ooo Residrted Endowment Fund5 Funds Hou5in8 income Other rental income Tradin8- EDP5 Ltd 1.240 16 155 1,240 16 155 1,207 16 269 1,411 1,411 1,492 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 310ecember 2023 NOTES TO THE CONSOLIDATEO FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 INVESTMENT INCOME Total funds 20Z3 Total funds 2022 £'ooo Unrestricted funds General Designated £'ooo £'o Restrlcted Endowrnent Furids Funds £'ooo Dividends receivable 1nterest receivable Rents receivable 417 19l 614 1,031 193 373 1,066 30 407 373 608 988 1.597 1,503 6. OTHER INCOMING RESOURCES Total lunds 2023 Total funds Z022 £'ooo Unrestrscted funds General Designated £'ooo E'ooo Restricted Endowment F￿ndS Funds £'ooo ins on sale of PrDpertie5 1,137 444 1,681 2,231 1.237 444 1,681 2,231 7. COSTS OF RAISING FUNDS Totsl funds 2023 £'o(KJ Total funds 2022 £'ooo Unrestricted funds Gerieral Deslinated £'ooo Ae5trirted Endowment Fund5 Fund% £'(N)o £'ooo Grebe agenrs, fees Otherglebe expense5 Trading activities- EDPS Ltd 46 26 46 56 146 48 54 181 30 146 176 72 248 283 55 The Exeter Diocesan Board of Finance Llmited Annual Report & Consolldated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT5 Icontinuedl For the year ended 31 December 2023 8. CHARITABLE ACTIVITIES Totallunds Toiallunds Unrestrtrted funds General Designatsd E'ooo £'ooo RÈ5tricted Fund5 Endowmeni Funds £'ooo 20Z3 2022 £.￿0 Contributions to Archbishops, Council Training lor Ministry National Church 346 346 346 203 36 203 36 212 29 Grants and provisions Mission agenty pensiu Costs Retired clergy housing Cosis Pooling of ordinands maintenance Erants li li 137 137 131 45 45 44 778 778 776 Re50vr¢ln8 Mi*lstry and Missson Stipends and national Insurance Pension costs Housing costs Remowal, reseiilement and 8r3nts Clergy Pension Fund Deficit Other expenses 3.239 1,351 3.994 2,524 l6 5,763 1.367 3,997 5.610 1,578 2,983 242 242 213 285 16 301 325 9,111 2.559 11,670 10,566 Suppon for parish minlsrry Mission and Ministry Creation Care & Social Justice Mi95ion and Ministry Development and Gre￿h Fund Parish Energy Support grant5 Cooper Legacy 8rant5 Support Services 1,270 Irm) 1,222 2,600 loo 2,236 77 26 463 io 1,594 1.542 20 1,562 12.023 3,801 15.93Z 14,972 Expendlture on Edutatlon and Churth ol England Schools Support lor church schoo15 and parishes S37 12 549 546 13.338 108 3,813 17.259 16.294 The yeèr-on-yeèr increa5È in housing c05t5 of £im relates to the continued catch-up from works delayed during the pandemic, the significant Increase in labour and rnaterial c05t5 and a hi8her number of clergy movin8 into properties in the year. 56 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 De¢ember 2023 ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS Pension Fund5 Act4vilies Undertaken Directly £'ooo Grant Funding of Support Costs £'ooo Total costs 2023 rooo Totol c05t5 2022 E'TrJO Adlustment £'oc¥J £'ooo Rai51ngs funds 248 248 778 15.932 549 283 776 14,972 S46 Contributions to ArchbishDp's Council ResourcinÉ parish rnini5try Educoiion 778 1,519 12,851 549 1,562 13,648 2,297 1,562 17,507 16,577 Net inco(Ne/lexpenditurel for the year 15 stated after charÉing amortisarion £2rM(12022.. £19kl, deprec12tion £28k12022.. E22kl and audit fees EO8F E24k. EDPS £5k12022.. ED8F E23k, EDPS £3kl. 10. ANALYSIS OF SUPPORT COSTS Tot31 funds 2023 £'¢)00 Total futhds 2022 £'ooo Vnrestyicted funds General Designated E'ooo Restricted Fund5 Endowment Fund5 Central 5UPPOrtladministr8tien Gtsvernance.. External audit of ED8F External audit of EOPS Registrar and Chaniellor 5ynodic31 c05t5 1,413 20 1,433 1.444 24 24 13 86 14 86 14 99 25 1,542 20 1,562 1,594 57 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financtal Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 De¢ember 2023 11. ANALYSIS OF GRANTS MADE No. Indlvlduals Instltut4ons Totèl 2023 E'QIAJ Total 2022 £'ooo £'ooo £'OLW) Fvcrn unrestrirted funds for r￿tional Ch￿r¢h responsibÈlities'. Contributions to Afchblshop's Couniil 778 778 776 From unrestrÉcted funds.. 16 18 IL6 48 77 106 26 116 48 77 106 26 iii 38 70 77 33 Cler8y ordination Clergy resettlement Clergy remova15 Cle18y 1ST inc￿￿bencV Churches together In Devon Mi55ion & Gruwth Fund Church schools Rep3irslimprovement Support for Lay workers StratQ8ic Oevelopment Fun Transforming PlyrnouthTagether St Mellitus south West Other 5tnall grants 38 io 113 li 113 33 12 27 io 27 io 15 35 13 74 13 29 42 zoo 386 196 582 455 F*om restricted funds for V8rlou$ purptr5es within resour¢ing parish mini5try'. Cooper Legacy Fund Growth & Mission Fund Parish Energy Support grant5 Repairs and Maintenance Grant Strategic Development Fund Plymouth Partnership in Mi55ion Exeter, St Matt's 8ay Church io 14 463 26 129 461 347 129 461 347 137 202 Total 937 937 960 Total 209 386 1.911 2,297 Z.191 Grants paid from designated fund5 have been included within unrestricted funds. Cooper Legacy grants approved by the Board at 31 December 2023 but not yet disbursed at that date were £6k. 58 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 De¢ember 2023 12. STAFF COSTS 2023 2022 £'ooo £'ooo Ernployee costs durin8 the year were as follows.. W3ge5 and $3larie5 National insurance contributions pert￿00 cosis- current year 1.962 196 385 1,886 193 398 2,543 2,477 The average number of persons ernployed by the group during the VEar'. 2023 Number 2022 Numbpr Administration 3nd financial management Grant funded prc>iectS ClerÉy Housing Mi551un. Ministry and Stewardship SafeguardinÉ Archdeacons. Staff Education and Schoo15 26 27 15 15 li 60 66 The aver3ge number ol persons empPoyed by the group durin8 thÈ year b35ed on full.tirne equivalenls.. 21JZ3 Number 2022 Number Administration and financial management Grant funded projects Clergy Housing Mission. Min15try Èrid Stewardship Safeguardin8 ArchdeaiL>ns' staff Education and Schools 22.0 20.7 11.6 11.0 50.9 52.1 The nurnbers of staff whose emoluments lincludin8 benefits in kind, but oxtludine pension contribuiionsl arnounlEd to Fnare than E60,LNJO were as follows". 2023 Number Z022 Number E60,tN)I- E70,thJO É70,rKJi- £80.000 £80.001- £90,LK)O Pension payments of £69k12022.. £75kl were made for these employees. All benefits are recognised when either a legal or contractual obligation arises. 59 The Exeter Diocesan Board of Finance Llmited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 12. STAFF COSTS Icontinuedl Remuneration of key management personnel Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activitie5 of the Diocese. The members of the Senior Management Team were.. Diocesan Setretary As51Stant Diocesan Secretary Director of Mission & Ministry Director of Mission & Ministry Director of Education Director of Finance and Company Secretary Director of People & Safeguafding Director of Property Dirertor of Communications Strategic Programme Manager Operations Manager Stephen Hancock Ed Moffatt Philip Sourbut luntil 30106120231 lan BL¢SSell (from 02105120231 Sue Lockwood Neil Williams Anthea Carter-Savige8r Graham Davies Chloe Axford Rafael Kra5nodebski Annemarie Kendell Remuneration, pensions and expenses for these 11 employees amounted to £792k12022.. 10 employees. amounting to £737kl. Trustees. emoluments No trustee received any remuneration for services as trustee12022'. none). 12 trustees received travellin@ and out of pocket expenses, totalling £46k12022.' 8 trustees received £27kl in respect of General Synod duties, duties as archdeacon or are3/rural dean, and other duties a5 trustees. EDBF is responsible for funding via the Church Commissioners the stipends of licensed 5tipendiary clergy in the Diocese, other than bishop5 and cathedral staff. ED6F is also responsible for the provision of housing for stip@ndiary clergy in the Diocese, including the 5uffrag3n bishops. but excluding the diocesan bishop and cathedral staff. 60 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 12. STAFF COSTS Icontinuedl The following table gives details of those clergy trustees who were in receipt of a stipend and/or housing and whether this was provided by ED8F during the year.. Stipend Ng ousing Ntr Yes Yes The Right Rev R Aiwell The Right Rev I Searle The Right Rev l Grier The Very Revj Greener The Ven A Beane The Ven V Breed The Ven D Dettmer The Ven l Bakker The Ven N Shutt The Rev A Atkins The Rev E Hobb5 The Rev T Hockley-still Tho Rev P March The Rev Preb M Partridge The Rev S Stayte The Rev R ALJStin The Rev Canon Dr M Williarns No Yes Ye5 Yes Yes Ye5 Yes Ye5 Yes Yes Ye5 Yes Ye5 Yes Yes Ye5 Yes No Ye5 Yes Yes Yes Yes Yes Yes No Clergy costs EDBF paid an average of 188 full time equivalent12022.. 1911 stipendiary clergy and stipendièry licensed lay workers as office holders holding parochial or dioce53n appointments in the Diocese, and the costs were as follows.. 2023 2022 E'O Stipends National in5uFance contdbutSons Pen510n COSts- curreni year 5,347 416 1,367 5.200 410 1.785 7,130 7,395 12071 Pension cosrs- deficit reduction 7,130 7,188 The above figure5 do not include contributions made towards stipends paid by other organisations, e.g. chaplaincies. During the year there were non-contractual severance benefits of £231k paid to 6 clergy, of which £140k had been previously provided for12022.' £Okl. All benefit5 are recognised when either a legal or constructive obligation ari5e5. In addition to the stipendiary clergy, the Diocese also hos the following other licensed ministry.. Self-supportin6 ministers 5412022.. 571. of which 1612022.. 141 are in training curacies Licensed Lay Ministers Clergy holding licence under seal 19712022'.2381 4012022.. 371 61 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATEO FINANCIAL STATEMENTS (continued} For the year ended 31 December 2023 12. STAFF COSTS Icontinuedl Clergy costs Icontlnuedl The stipends of the Diocesan Bishop and Suffragan Bishops are funded by the Church CornTnissioner5 and are ￿n the range £39,953 - £48,97212022 range.. £38.050 - £46,640). The annual rate of stipend. funded by EDBF, paid to Archdeacons in 2023 was £39,05812022.. £37,198) and other clergy who were Trustees were paid £28,82012022.. £27,445). 13. ANALYSIS OFTRANSFERS 3ETWEEN FUNDS Llnrestritted lund5 Restricte Funds Endowment Gpneral Designated Funds .0 Property Sales Property Purchases and Improvements Tran5fer5 as a Fe5uIt of p3rsonage replacement Adiustment for clergy housing maintenance work not yet coniracted Clergy Conference Miscellaneous adjustrnent to funds 971 11,0741 250 131 824 609 16091 30 154 630 11,1901 693 14. INTANGIBLE FIXED ASSET5 Website & Software f'OOO Cost At I January 2023 Addition5 120 At 31 December 2023 12D Amortisation At l January 2023 Charge for the year 61 20 At 31 December 2023 81 Fl¢t Book Valye At 31 December 2023 39 At 31 Oecember 2022 59 62 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 15. TANGIBLE FIXED ASSET5 F¥eehold Properties & Land £'ooo Office Equipment Fixtures & Total PV Pane15 £'ooo Cost At I january 2023 Addition5 Disposals 58,631 193 306 16 361 59.298 210 11,3121 At 31 Decernber 2023 57,512 322 362 58,196 Dtpreclation At I January 2023 Oisposa15 Char8e for the year 282 188 470 13 15 28 At 31 December 20Z3 295 203 498 Net BoDk Value At 31 Decernber 20Z3 57,512 27 159 S7.698 At 31 December 2022 58,631 24 173 58,828 Freehold properties and land fall into 3 number of asset classes.. Glebe Houses P•rsonage Houses (Endowmentl Education Property Ifndowmentl Other Houses Board Property IDeslEnaredl Unresirlctedl Total IEndowrnentl IRestrlctedl £'ooo £,￿0 At l January 2023 Additions 10.912 42 25,859 97 119 367 21,374 54 58,631 193 Trinsler5 (note 131 131 At al December 2023 10.803 25,825 119 367 20,398 57,512 All of the properties in the balance sheet are freehold and are vested in EDBF, extept for benefice houses which are vested in the incumbent. Two propertie512022.. 21 were previously purchased with the help of value-linked loans from the Church Commissioner5,' the èppropriate share of the net sale proceeds, when the houses are disposed of, will be remitted to the Commi5510ners, and the related loan liability extinguished. The value of such properties Included above amounts to £118k 12022.. £118kl Up to and including 31 December 1999 it was EDBF'S policy to include freehold properties at their 31 December 1994 open markèt value. From l January 2000 EDBF adopted the policy not to rev3lue tangible fixed assets. Whi15t previous valuations have been maintained they have not been updated. 63 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATEO FINANCIAL STATEMENTS (COn￿A￿ed) For the year ended 31 December 2023 16. FIXED ASSETS INVESTMENTS At l January 2023 £'ooo Add4tions Disposals Tran5fer5 Chan¥e In Market Value At 31 December 2023 £'ooo E'OOO £.000 Vn¥estricted funds Listed investments Unlisted investments 10,511 13.0001 1,240 8,751 10,516 13,OWI 1.240 .756 Restflrted funds Listed investrnenrs 2,948 3,228 Endowment funds Investment property Listed investments 25,989 22,117 io 1.257 2.259 27.101 22,376 12,0001 48,106 12,1551 3,516 49.477 Totsl EDBF 61,S70 io 15,1551 5.036 61.461 64 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 16. FIXED ASSETS INVESTMENTS Icontinuedl The corre5ptrndin8 historical cost fiBurp5 are.. Group 2023 EDBF 2023 Group 20Z2 £'ooo EOBF 2Q22 'ooo Unrestri¢¢ed lunds Listed investrn2nt5 Unlisted Investments 5.470 5,470 7,393 7.393 5,475 5.475 7,398 7,398 Restrieted fund5 Lisied investments 1.825 1,825 1,825 1.825 Endowment funds Invesrment propertv Listed InvestThents 3,345 11,910 3.345 11,910 3,343 12.861 3,343 12,861 15,255 15,255 16,204 16,204 Total 22,555 22,555 25,427 25,427 Investment propertv al A full list of properties is available for inspection at The Old Deanery. bl All land and building5 held on 31 December 2023 are held on a freehold basis. cl Commer¢ièl investment properties were valued as at 31 December 2023 by Stratton Creber Commercial ICh6rtered SuNeyorsl on an open market basis and residential properties were revalved by the trustees Dn an open market value basis. Historic glebe was valued by Savi115 Ichartered Surveyor51 on an open market basis at 31 December 2022. and their value has been updated by trustee5 to 31 December 2023. having regard to suitable indices. dl The investment properties form part of the Diocesan Stipends Capital Account- see notes 20-23. el The income yield, net of fees/costs, on the value of the property investment5 held as fixed assets in the year was 1.38%12022.. 1.63%1. The total return was 6.78%12022.. 65.25%). Investment properties are held to provide an investment retL¢rn. rather than as programme investments. 65 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS l¢ontinuedl For the year ended 31 December 2023 17. DEBTORS-GROUP and EDBF Group 2023 £'Th)o EDBF Group 202Z £'ooo EDBF ZQ23 E'ooo 202Z Due within one year loans to parishes Common Fund Gift aid from EDPS Ltd Current aciount with subsidiary companv Oepartmet)t for Edvtationl Éovernors Prepayments Other debtors 32 115 32 115 82 io 637 239 29 195 29 195 85 88 166 238 931 637 239 788 166 238 940 1,811 1.899 1.568 1.732 Oue after more than one year Loans to parishes Othei debloT5 knd prepayments 67 26 67 26 88 12 88 22 93 93 iio iio Total debtuts 1,904 1,992 1,678 1,842 18. CREOITORS: amounts fallln8 due within one year Group 2023 EDBF Group 2022 £'o 135 58 1,527 EDBF 2023 20Z2 Trade creditors Taxation and social security Orher creditors and accruals Proceeds of property sold by Board payèble to external org3nisatio Receipts in advance CBF Loan5 Photovoltaic Pands Iparsonagesl Natwest Loan- C8IL5 442 72 1.204 442 65 1,199 135 43 1.525 51 185 51 105 34 4LKI 51 87 34 4LK) 183 400 Total creditors.. arnount5 fallifig within one year 2,354 2,340 2,310 2.275 66 The Exeter Diocesan Board of Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 Detember 2023 19. CREDITORS.. arnounts falling due after more than one year Grovp 2023 £'ooo E08F 2023 £'c¥Jo Group EDBF 2022 L03n repayment in5talrnents due after more than one year Natwest Loan CBILS Church Commissioners value-linked loan5 667 119 667 119 1,067 119 1,067 119 Total treditor5.' amounts falllng due after more than one year 786 786 1.186 1,186 2023 ZOZ2 £'ooo The maturity of the above loans may be analysed as follow5.' Between one and two years Between two and five years In five years and more 400 267 119 400 667 119 786 1,186 The loan with Natwest Is repayable over S years by equal instalments, starting in September 2021. The interest rate is fixed at 2_66% per annum and the loan can be repaid early at any point without penalty. The loan is secured by a floating debenture over ED8F's assets. Value-linked loans IVLLS) represent amounts advanced to EDBF for the purchase of two properties on an eqtjity sharing basis and are repayable on the disposal of the related property. As at 31 December 2023 the Board had no intention of disposing of either of the properties funded via VLL5. 67 The Exeter Diocesan Board of Finance Llmited Annual Report & Con501id3ted Financial Statements For the year ended 31 De¢ember 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 310ecember 2023 20. SUMMARY OF FUND MOVEMEP4T5 ncorne ExpÈndthre fr¥n5fer5 Galns and Lossès £'ooo 6alances at 31 DecembÈt2023 £'OOD jan￿ary 2023 £'OOD UNRESTRICTED FUNDS General 7,201 12,492 113,3681 630 1.229 8,184 692 ZO,776 775 li Board PropErtvEs Clergy Housing Repalrs Dh?cesan Mission Fvnd5 DiDrÈ5an M155ioTr & fjrowh Fund Clergy Conlerence Fund Burrington School Fun Ptymouih 5DF Project 20.L86 166 76 16091 76 IS7 64 30 34 53 166 34 26 145 22,803 21,517 RESTRICTEOfUND5 3.905 97 2,101 262 4.244 Olocesan Stipends IncornÈ mpthn Sthool sale AgriculturallRural & Cts)per L￿3cV 314 16 276 3D2 16 300 18 Growth & M15s1on Fund Strategic Developnwni Prolecrs 71 GSO li IS8 420 Stttiegit Mlni5try Fund tler8y Widow5 Diocesan Investment P¢0$ Mistellaneous MEsrricted Funds 99 99 14 147 57 5.314 5,644 ENDOWMENTFU14DS Permanent Di Nobb5 Expendable 82 89 Glebe Property 10,912 43,781 10.803 19,705 27.81S 27,980 4.245 854 124.0761 24,245 633 444 3,126 8enelite Property Church SchoDIs Fhe Church College H05tel Trust 27.347 3.936 780 31YJ 74 86,838 444 693 3,516 91,491 EDllF Tvt•l lu1￿5 121.156 17.005 S,036 126,836 s￿￿51d7311e5-Ge￿￿ral Fvhds EDPS Lid 146 Group Total 122,165 l7,IS1 117.5071 5.036 J26.845 68 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 SUMMARY OFA55eTS BY FU￿D CurrEnt AS￿15 Net As￿ts Tangib￿/ In¥estfflents Fixed A5$ets £'ooo E'fAO £'doo E'ooo Unrestricieé fuDds-Gener•l si£ 8.629 1,401 8.184 Ynfestrfcted- desl8natÈd 123 S76 198 166 76 86 94 34 16 704 20,186 166 76 Board Properties 20.107 Diotesèn M1S5ion Fund£ Mission & Growth Fund Clergy Confeienie Fund 94 34 26 Plymourh SOF Pioiect MI&iE11aneous OeSlBDaled Fund5 145 145 iQ.107 1.404 21.517 Resirktsd Oiocesan P351oral Account Oioce5an Stipends Ipcorne 8ampion School sale AgriCulturallRural & Cooper Legacy Rwired Clei8y Hou51ng Growih & MISSiOTh Fund Strategi¢ Development Fund Prujeits 3,D23 1.225 131 302 16 4.244 aol 16 346 204 667 660 195 72 78 144 99 ClÈrgy Widow5 Dioce5èn Investment ProEramme zi 99 J4 367 3.227 2,688 5.644 Endowmont Pemanent Dr Nobbs Eyertdable 0ioce5an Stipeftds Caprtal Glebe Property Inve51menc Fund 83 89 10.803 lo.￿3 19.705 27,815 27.980 4,245 8S4 19.705 25,270 2.$48 Benefite Property Chuich SchorAs 25,825 119 3.565 854 561 3S,747 49,477 S,270 91.491 Total EDBF ￿fftds 57.737 61,461 10.763 126.836 SubsM4iarie5 EOPS Ltd 24 ToralGroup funds 57,737 61,461 ID.757 126.845 69 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIOATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 22. ENDOWMENT FUND- TOTAL RETURN Investment Fund £'OOD lJnapptied Total Total Endowmeni Return £'OC4) At ljartuary 2023 43.781 43.781 124,0761 24,076 Movements In the reporEing pertod Dividend5 and Interest Glebe land rèntal income Glebe commercial propertv lrnprovement cost5 property Transferof glebe proper¢y Ifor disposal) 5vrplus on sale of properly Realised and unrealised gains/llosse51 44 44 16 15 18 151 444 3,126 16 15 18 151 444 3.126 Less.. Glebe land and commercial managernent fees Glebé land and cornrnercial other costs 124,0761 27,884 3,808 UnapplSed Total RetyJrr* allocatÈd to Income io be sed for 5tipend5 Equaiing to dividend. interest and rents Net rno¥ement5 in report pttiod.. 124,0761 27,815 3.739 At 31 Oetember 2021 19.705 Z7,815 47520 The trustees adopted a Total Return accounting approach under the Diocesan Stipend Funds (Amendment) Measure 2016 with effect from l December 2023. In order to establish the UTR, indexation was applied from l January 2001, using the Consumer Prices Index ICPII. As Total Return accounting was only adopted with effect from l December 2023, the income and expÈnditure shown above represents one twelfth of the total for 2023, $0 the whole amount has continued to be shown against the unrestricted/restricted funds in 2023, as the sums are not considered to be material. 70 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS Icontinuedl For the year ended 31 December 1023 23. DESCRIPTION OF FUNDS General fund The general fund is EDBF'S unrestricted undesignated fund, available for any of EDBF'S purposes without restriction. Church building fund This designated fund was created from the previous balances within the new church building and church building repaii fund$ and is vsed to provide103ns for parishes undertaking strategic reviews or m3jor improvements of church buildings. Board properties This designated fund represents the properties owned and used by EOBF in the furtherance of its work and includes curates housing. Clergy housing repairs This desiÈnated fund 15 Used to support spending on the repair and maintenance of clergy housing. Diocesan Mission funds These designated funds are all part of the mission and ministry development fund, which provide funds for one-off projects tc> prtsmote the ministry of the church and its over311 mission in the Diocese. The growth fund, together with the mustard seed funds has been set aside specifically to fund initiatives in mission communities. Diocesan Mission & Growth Fund This designated fund 15 available to support local initiatives within Mission Cornmunities to deliver the diocesan pTiorities, particularlv to support work with children, young people and familie5. Clergy conference fund This designated fund provides funding for the diocesan clergy conferÈnce, held every three to five years. Burrington School Fund This designated fund holds the net proceeds from the sale of the former Burrington School lin 20191. which can be used to support educational purposes. Plymouth SDF Project This designated fund was established in 2019 to provide EDBF'S agreed funding for the church planting SOF project in Plymouth. Miscellaneous funds This designated fund is used for holding monies received by EDBF for supporting specific projerts/initiatives. Diocesan Pastoral account The diocesan pastoral account was set up under the provisions of the Pastoral Measure 1983. The restricted purposes for which the account may be used under the more recent Diocesan and Pastoral Measure 2011 are". 71 The Exeter Diotesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIOATED FINANCIAL STATEMENTS Iiontinuedl For the year ended 31 December 2023 23. DESCRIPTION OF FUNDS Icontinyedl Diocesan Pastoral account Icontinuedl To defray costs incurred for the purposes of the Measure or any scheme or order made under the Measure except for salaries of regular diocesan employees., To make103ns or grants for the provision, restoration, improvement or repair of churches and parsonage houses in the Diocese,. Other purposes of the Diocese or any benefice or parish in the Diocese,. To make grants or loans to any other Diocese,. and To transfer funds to the diocesan stipends fund income or capital accounts. Diocesan stipends income This restritted fund represents the intome from the Diocesan Stipends Capital account, which has not yet been applied to pav clergy stipend5. Bampton School sale This restricted fund was created to separately identify the previous Bampton School sale proceeds from the general Church School funds. Agricultural/rural fund5 This restricted fund represents donations received to enable the Diocese to provide suppo¥t to the farming community across the Diocese. Retired clergy housing This fe5tricted fund comprises the propertie5 and any sale pro£eeds held for this purpose. Growth and MISS￿On fund This restricted fund wa5 established in 2015 to provide funding for specific growth initiatives across the Diocese. Three have $0 far been approved by Diocesan Synod- Growing the rural church, new hoiJsin8 areas and local mission community 5UPPOrt. Strategic Development Fund Projects Thi5 restricted fund was established to hold any funding received OT due in relation to those projects receiving Strategic Development Funding. EDBF is not deemed to have the benefit of the income associated with these projects until the expenditure has been inturred and claimed accordingly. Any changes to the original submission have to be approved by the Church Commissioners. MTrnisterial Education Training This restricted fund represents the balènce at any time on the funding of ordinands training. 72 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS l¢ontinued} For the year ended 310ecernber 2023 23. DESCRIPTION OF FUNOS Icontinuedl strategic Ministry Fund This restricted fund was established in 2020 to manage the grant funding received from the Archbishops, Council to support the appointment of additional stipendiary curates. Clergy widow5 This restricted fund represents properties purchased from donations to provide for clergy widows. Cooper legacy This restricted fund. arising from the legacy of Mrs Cooper and is used to provide grants to assist parishes with church building repairs. Diocesan Investment Programme This restricted funds represents grants that have been received in advance from the Archbishops, Council, and have yet to be applied tts individual projects. Miscellaneous Restricted Funds This restricted fund represents the unspent balance of donations received for parishes and for managing the ministry In Cranbrook. Dr Nobbs This is a permanent endowment held by EDBF for the support of clergy following marriage breakdown. Diocesan stipends capital The diocesan stipends capital fund has been created from the diocesan stipends fund capital account assets held on behalf of the Oiocese by the Church Commissioners under the Endowment5 and Glebe Measure 1976 to provide income for clergy stipends. The fund also represents the accumulated sale proceeds of glebe property. sale proceeds of benefice houses and surplus benefice endowments following pastoral reorgani5ation. Capital funds may be used for the purchase, improvement and maintenance of glebe property and benefice houses. The funds may be invested in the CBF Church of England Property, Investment or Fixed Interest Securities Funds. or simply held on deposit. 8er5efice property fund This restricted fund comprisÈs of benefice houses or the sale proceeds of former benefice houses held on suspense by the Church Commissioners. Although benefice houses are vested in the incumbents for the time being of the benefices concerned. EDBF is obliged to maintain them, to ensure that there are sufficient benefice houses for the pastoral structure of the Dioce5e,' In addition, where a benefice house is no longer required then it is usually transferred into the unrestricted corporate ownership of EDBF. 73 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 23. DESCRIPTION OF FUNDS Icontinuedl Church Schools funds This fund represents premises and endowments vested in EDBF under the Education Act 1993. Church College Hostel Trust This fund supports the Board of Education in all of its statutory powers and duties under various education acts together with the training of teachers in the principles of the Church of England. 24. CAPITAL COMMITMENTS At 31 December 2023 EDBF had c8p4tal expenditure commitments authorised but not contracted for of £2.2m12022.' E603kl. 25. OPERATING LEASES Ar 31 December 2023 EDBF had future minimum lease commitments tjnder non-cancellable operating leases as follows.. 2023 £'ooo 2022 Non-Land & Bulldings operating leases". Within one year of the balance sheet date In the second to fifth year5 inclu51ve of the balance sheet date 26. POST BALANCE SHEET EVENTS AND CONTINGENT LIABILITIE5 There were no post balance sheet events or contingent liabilities at the balance sheet date. 27. PENSIONS EDBF participates in three pension schemes administered by the Church of England Pensions Board, which hold5 the assets of the schemes separately from those of EDBF and the other Participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy. The other two are part of the Church Worker5 Pension Fund. The Church Workers Pension Fund has a sertion known as the Defined Benefits Scheme, deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. 74 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontlnued} For the year ended 31 Decernber 2023 27. PENSIONS Icontinuedl These schemes are multi-employer last man standing defined benefit pension schemes for which E08F is unable to identify its Share of the underlying assets and li3bilitie5 as each employer is exposed to actuarial risks associated with the current and former employee5 of other entities participating in the scheme. For multi-employer schemes where this is the case, paragraph 28.11 of FR5102 requiTes EOBF to account for pension costs on the basis of contributions actually payable to the scheme in the year and, where contributions are affected by 3 surplus or deficit in the scheme, to disclose infoimation about the surplus or deficit and the implications of the surplus or deficit for EDBF. A valuation of each scheme is carried out once every three years. Church of England Funded Pension Scheme With effect from l January 1998, diocesan clergy became members of the Church ol England Funded Pensions Scheme. This defined benefit scheme provide5 benefits based on the National Minimum Stipend in the year before their date of ietirement and provides for that part of the benefit that relates to pensionable service after I january 1998. Benefit5 are currently being accrued on the basis of half of the National Minimum Stipend INMSI being paid as the normal pension on reaching the age of 68 on completion of maximum service of 41.5 years. or 1.25 times th15 amount for archdeacons, plus a lump sum of three times the pension based on the previou5 year's NMS payable from the scheme. Pensions in respect of pensionable service before I lanu3iy 1998 will be provided for by the Church Commissioners under the previous arrangements. EDBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy. a defined benefit pension scheme. This scheme is administered by the Chuich of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies. Each participating Responsible Body in thè Church of England Funded Pensions Scheme pays contributlOn5 at a tommon contribution rate applied to pensionable stipends. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to atlribute the Scheme's assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as If the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued In that year, which were El,367k in 202312022.. £1,578kl. plus any figures arising from contributions in respect of the Scheme's deficit (see below). In addition, a further £21k12022.' £34kl has been charged in relation to EDBF employees who are also in thi5 scheme. The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the v3luation results being agreed. the defitit contributions paid were £012022,. £207kl. 75 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the year ended 31 December 20Z3 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 27. PENSIONS {¢ontlnuedl Church of England Funded Penslons Scheme Icontinuedl A valuation of the Scheme 15 carried out once every three years. The most recent Scheme valuation completed was Car[￿ed out at 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on asset5 of E2,720m and 3 fijnding target of £2,160m, assessed Using the following assumptions.. An average discount rate of 2.7% per annum., RPI inflatiOTI of 3.6% per annum land pension increases conslstent with thisl., CPIH inflation in line with RPI less 0.8% pre-2030. moving to RPI with no adjustment from 2030 onwards.. Increase in pensionable stipends in line with CPIH. and Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates from 2013 in line wtth the CMI 2020 extended model with è long-term annual rate of improvement of 1.5%, 3 smoothing pèrameter of 7. an initial addition to mortality improvements of 0.5% per annum and an allowance for 2020 data of L)% li.e. 2020- 0%1. Following finalisation of the 31 December 2021 valuation. deficit contributions ceased with effect from I january 2023, since the Scheme was fully funded. The deficit recovery contributions under the recovery plan in force at each 31 December were as follows: % ot pensionable stipeTrd 310eceTnber 2021 31 December 2022 31 December 2023 7.1% payable from January 2021 to December 2022 An interim reduction to deficit contribtltions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022. For senior office holders, pensionable stipends are adjusted in the calculation by 3 multiple, a5 set out in the Scheme's rules. 76 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTESTO THE CONSOLIDATED FINANCIALSTATEMENTS Icontinuedl For the year ended 310ecember 2023 27. PENSIONS Icontinuedl Church of England Funded Pensions Scheme (continued) Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recoEni5ed 35 a liability. However. as there are no agreed deficit recovery payment5 from l J3nuary 2023 onwards, the balance sheet liability as at 31 December 2023 is nil. The movement in the balance sheet liability over 2022 and 2023 1% set out in the table below. 2021 2022 Balance sheet liability at l January 350,(￿0 1207,¢YJO Interest cosi Irecogni5ed In SOFAI Remaining change 10 the b31ance sheet liability IreioEnised in SOFAI I143.￿0) Balance Sheet liability at 31 Decernber Comprises change in agreed deficit recovery plan and change in discDunt rate and inflation assumptions between year-end5. This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 a5 there are no agreed deficit recovery payments going forward. No price Inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known. Llecembèr 2023 Decernber 2022 Decembèr 2021 Di510unt rate nla nla la n/a nla nla 0.0% p nla -1.5% p Increase to total pensionable payroll The legal structure of the Scheme is such that if another Responsible Body fails. EDBF could become responsible for paying a share of that Responsible Body'5 pension liabilities. Church Workers Pension Fund- Defined Benefits Stheme EOBF paiticipates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme Is administered by the Church of Eng13nd Pensions Board, which hold5 the assets of the schemes separately from those of the Employer and the other participating employers. 77 The Exeter Oioce5an Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 27. PENSIONS Icontinuedl Churth Workers Pension Fund- Defined Benefits Scheme {continuedl The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and 3 cash balance section known as Pension Builder 2014. The Defined Benefits Scheme l-DBS"I section of the Church Workers Pension Fund provide5 benefits for lay staff based on final pensionable salaries. For funding purposes, DBS 15 divided into sub-pools in respect of each participating employer, as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers. including those relating to mortality and post- retirement investment returns. The division of the DBS Into sub-pools is notional and is for the puipose of calculating ongoing contributions. This does not alteT the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is Iransferred from employer5, sub-pools to the life Rssk Pool and all pensions and death benefits are paid from the Life Risk Pool. The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specrfic employers. since each employer, throuEh the Life Risk SectlDn, is exposed to actuarial risks associated with the current and former employees of other entitie5 participating in DBS. This mean5 that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SOFA during the year are contributions payable towards benefits and expenses accrued in that year12023.' £130k,. 2022.. £141kl. As there is no longer a deficit in the DBS, as highlighted in the table below the total charge recognised in the SOFA was £130k for 2023 12022.. £141kl. If, following an actuarial valuation of the Lile Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers, sub-pools, or vice versa. The amounts to be transferred land their alloc8tion between the sub-poolsl will be settled by the Church of England Pension5 Board having taken advice from the Actuary. A valuation of the D8S is carried out once every three years. The most recently finali5ed valuation was carried out 3$ at 31 December 2022. In this valuation, the scheme showed an overall surplu5 of £73.6m. The next actuarial valuation is due at 31 December 2025. 78 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements Forthe year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL 5TATEMENT5 Icontinuedl For the year ended 31 December 2023 27. PENSIONS Icontinuedl Church Workers Pension Fund- Defined Benefits Scheme Icontinuedl Following the 2022 valuation. the Employer entered into an agreement with the Church Workers Pension Fund to pay a contribution rate of 21.8% or 20% of pensionable salary (depending on the accrual ratel and expenses of £20,700 per year. The movement in the provision is set out below.. 2013 2022 Balance sheet liabilitv 3t l January Interest cost Ireco8ni5ed in SOFA) Rem3ining change 10 the balance sheet liability. Irecognised in SOFA) 8alan£e sheet liability at 31 December Cotnprises chan8E in è8feed deficit recovery plan and change in di510unt raie between year-ends. Where relevant, this liability represents the present value of the deficit contribution5 agreed as at the accounting date and has been valued using the following assumptions, set bv reference to the duration of the deficit recovery payments.. 02cernber 2023 Oefernber 2022 Oe¢ember ZQll Discount rate NIA 0.00% 0.00% The le8al structure of the Scheme 15 such that if another employer fails, the employer could become responsible for paying a share of that employer's pension liabilities. Pension Builder Scheme The Pension Builder Scheme of the Church Workers Pension Fund is made up of two 5ubsections'. A deferred annuitv section known as Pension Builder Classic- and A cash balance section known as Pension Builder 2014 Both sections of the Pension Builder Scheme are classed as defined benefit schemes. 79 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 27. PENSIONS {tontinuedl Pension Builder Scheme Icontinued} Penslon Builder Classi¢ provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may a150 be added, depending on investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each Member. Discretionary bonuses may be added before retireTnent, depending on investment returns and other factors. The account, plu5 any bonuses declared, is payable, unreduced, from age 65. There is no sub-division of assets between employers in each section of the Pension 8uilder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This 15 because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pen5ion5 Costs charged to the SOFA in the year are the contribution5 payable12023'. £234k,. 2022.. £223kl. A valuation of the Pension Builder Scheme is carried out once every th¥ee years. The most recent valuation was carried out as at 31 December 2022. For the Pension Builder Classic section. the 2022 valuation fevealed a surplus of £34.8m on the on-going assumptions used. At the most recent annual review. effective l January 2024. the Board chose to grant a discretionary bonus of 6.7% to both pension5 not yet in Payrnent and pensions in payment in respect of the service prior to April 1997.. and a bonu5 on pensions in payment in respect of p05t 2006 service so that the pension increase was 5% Iwhere usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section. the 2022 valuation revealed a surplus of £8.5m on the on-going assumptions used. There is no requirement for deficit payments at the current time. The next valvation 15 due at 31 December 2025. The legal structure of the scheme 15 such that if another employer fails, EDBF could become responsible for paying a Share of the failed employer's pension liabllities. 80 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {continuedl For the year ended 31 December 2023 28. RELATED PARTY TRANSACTIONS There are no direct related party transattions involving trustees other than the provision of stipends, housing and expense5 as set out in note 12 to the consolidated financial statements. The wife of Giles Frampton (the Chair of the Board of Finance) is a 5elf-Supporting Minister lunpaidl leading one of Dur Mission Communities. A parsonage house Is Provided by ED8F for this role. with any expenses incurred being paid by the Mission Community. The wife of the Venerable Andrew Beane has been paid to provide consultancy services for social media on the Growing the Rural Church project. Catherine Beane received £2,625 12022.. £4,200> for the provision of this service. 29. FUNDS HELD AS CUSTODIAN TRUSTEE ED8F acts as custodian trustee for many trust funds by virtue of the Parochial Church Councils IPowersl Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and other5. Asset5 held in this way are not aggregated in these financial statement5 35 EDBF does not control them. The financial assets held in this way may be summarised as follows.. 2023 E'OOO 2022 C8F Church of England Investment Fund incorne shares C8F Church of England Investment Fund accuMulat￿On share5 C8F Church of England Fixed Iriterest Securities Fund shares C8F Church of England Property Fund shares CBF Global Equiiy Incoffle Fund Charifund-lncome Unit5 Ch3ribond Fixed InlEie5t Income Other common Investrneni fund holdin85 14,261 736 251 865 1,225 2,439 12,819 661 237 921 1,066 2,517 124 24 128 24 other fixed inierest stocks CBF Church of England Deposit Fund Chirles Stanley Brewin Oolphln Cash at bank 706 677 1.477 690 1.271 16 1,190 19 Totsl asset5 held as custodian trustee 22,607 21,761 81 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {continuedl For the year ended 31 Decernber 2023 30. ANALYSIS OF NET DEBT As at l January 2023 £'ooo 3,492 34 Cash Ilows At 31 December 2023 É'o £'o Cash at bank 3nd in hand Cash equivalenrs Debt due after l year Debt due within l year 5,356 8.848 35 17861 14(NJl 400 34 14341 1.906 5,791 7,697 31. MONEY HELD AS INTERMEDIARY AGENT FOR OTHERS ED8F occasionally holds money as intermediary agents for others as follows: In respect of the Board of Edu¢atiori'5 invofvement in the maintenance and improvement of Church of England schools, buildings, money is sometimes held in advance of work being undertaken. At the end of 2023 the sum of £599,00012022.. £706,0(X)I wa5 held in the general bank account for this purpose,. and The board also holds the Department for Education's Formula Capital funding on behalf of Church of England schools in Devon and the sum so held on 31 Detember 2023 amounted to £391,00012022.. £613,000) and was also held in the general bank account for this purpose. Neither of the above sums is included in the board's Balance Sheet at the year-end. 32. EDBF LIMITED- LIA8ILITY OF BOARD MEMBERS The Exeter Diocesan Board of Finance Limited is a company limited by guarantee and as such has no share capital. In the event of winding-up, the liability of board members is limited to £1 each. 82 The Exeter Diotesan Board of Finance Limited Annual Report & Con501idated Financial Statements For the year evTrdÈd 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS lcontinuedl For the year ended 31 Decernbef 2023 33. SUBSIDIARY UNDERTAKING IEDPS Limited) The wholly owned trading subsidiary. EOPS Limited, which is incorporated in the United Kingdom (Registered Company No. 44774461. provides services to Church of England academies and schools. ED6F owns 100% of the issued share capital of two ordinary shares of £1 each A summary of the trading results is shown below., 2023 £'ooo 2022 E'Q Sumfflary profit and loss attoutht Turnover Cost of sales Gress Profit 153 266 12 92 other operating incorne Administrative expenses Operating profit 88 Gift made to parent cornpany ProfitllLossl 8ftertax Curreni 355ets 116 11071 218 Total net 8ssets Capital and reserves Issued share capital 3nd retainpd profit 83 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financlal Statements Forthe year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2023 34. 2022 Comparative figures by fund Olte to space constraints within the main body of the accounts, this note shows the breakdown by fund for 2022 for the following notes: CONSOLIDATED STATEMENT OF THE FINANCIAL ACTIVITIES For the year ended 31 December 2022 Unrestri¢ted funds General Designatèd £'ooo Rest¢irtEd Fvnd5 EThdowmeTht Total funos Funds 2022 £'o £'ooo £'ooo Income and endowments from Oonation5 8.6Z4 8,624 1,971 1.220 754 1,492 1.503 2,231 Archbishop's Council Other donJtion5 1.971 913 57 307 697 1.492 467 878 Othertrading activities Inve5tment5 Other 1.035 1.353 Total income and endDwments 11465 3,976 1,353 17,795 Expendliure on Costs of raising fund5 Charttable activities 206 12,145 77 3.973 283 16,294 176 Tatal expenditure 12.351 176 4,050 16,577 Net Incomellexpenditurel before investment gain5 114 1741 1,353 1,218 Net 8ain/llossl on investments 11.38VI 13551 7.665 5,936 Net Intome/lexppndityrel 11.2661 11691 14291 9.018 7,154 Transfers between fund5 11,3471 479 Net movement In funds 699 9,497 7,154 Total fund$ brought forward 9,823 22,104 5,743 77,341 115.011 Total fvnd5 carrled forward 7,210 22,803 5.314 86.838 122.165 All activitie5 derive from continuing activities. 84 The EKeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statement5 For the yÈar ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 A2. DONATIONS {20221 Parish Contributlons The majo¥ity of donations are collected from the parishes ol the Diocese through the common fund system. Unrestricted lufids General Designated £'oJo Restrkied Endowrnent Total lunds Funds Fund5 20Z2 É'ooo £'ooo Current Year as5essrnents 8.958 8,958 14821 .476 8,476 Receipts for previou5 year5 Receipts for fut￿re ye3r5 136 136 12 Total Income 8,624 8,624 Arthbishop's Council Unrestricted fvnds Re$tritted Endovlrnent Totsl fund5 202Z £'ooo General E'C*JO Designated Funds Funds Lowest Incorne Communitie5 Funding Parish Energy Support grint5 srrateEiC Ministry funding 1,190 1,190 463 463 318 318 1,971 1,971 The Lowest Income Communities Funding is the annual grant either for supporting 5pecifit parish mi55ion and development projects or for clergy stipends. 85 The Exeter Diocesan Board of Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 December 2023 NOTE5 TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 A2. DONATIONS120221 {contlnuedl Other Donations and grants Total fund5 1022 ufire￿rIrted funds General DesiEn4ted Restrlrted Funds £'wo EndowmÈ#t Funds All Churches Trust Gfant Legacies Donations and grants Resourang Ministerial Education 147 147 160 640 273 8(M) 273 307 913 1,220 A3. CHARITABLE ACTIVITIES120221 Total funds 2022 E'OOO Vnr2strictel lund5 General De￿gnated £'ooo Restiieted Funds ETrdowm2nt Funds Statutory fees Chaplaincy income Feed in/Export Tariffs - PV p3ne15 CoJrseltrainin8 fees fvliscellaneou5 incotne 604 16 604 73 57 22 24 31 22 24 31 697 57 754 A4. OTHER TRADING ACTIVITIES12022) Total fund5 1022 Unrestrkted fuTrd5 General DeslBnated Resirlcted Endovmiemt Funds Fund5 £'wo Housing income other rental income TradSn8-EDPS Ltd 1,207 16 269 1,207 16 269 1,492 1,492 86 The Exeter Diocesan Board ol Finance Limited Annual Report & Con501idated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 AS. INVESTMENT INCOME120221 Total funds 2022 E'CIJO Llnrestiitted funds General Oesignated E'OOO £'o Restricted EndowmeDt Funds Funds £'ooo £'ooo Dividends receivable 438 Z9 628 1.066 30 407 Rents receivèble 407 467 1,035 1,503 A6. OTHER INCOMING RESOURCES12022} Total lund5 2022 É'ooo Unrestricted funds General Oestgnated £'DOO Restricled Endowment Funds Fund5 E'OOO Gains on s31e of Properties Surplus on disposal of fixed a55ets 878 1.353 2,231 878 1,353 2,231 A7. COSTS OF RAISING FUNDS12022 Total funds ZQZ2 £'ooll Unrestricted lunds General Oestgnated £'ooo Resirlrted Endowmenl Funds Funds £'ooo Glebe agents, fee5 Other glebe expenses Trading attiviiies- EDPS Ltd 48 29 48 54 181 25 181 2Q6 77 283 87 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinued) For the year ended 31 December 2023 A8. CHARITABLE ACTIVITIES120221 Total funds 2012 Unresiritted funds General Designated E'UOD £'o Restncted Funds £.{￿0 EmdLW4rnent Funds Contribulion5 to Archty'shop5' Council Training lor Ministry National Church 346 346 212 19 212 29 Grants and provi5i(>ns Mi55ion agency pension Costs Retired clergy housing Costs Poo11nE of ordinènds, mainienance ¥r3nts 14 14 131 131 44 776 776 Re50ur¢ing Mlnlstry and Missio Parish Ministry Stipends and national Insurance Pensitrn costs Housing cosis Removal, resettlement and grants Clergy Pension Fund Deficit Other expense5 3.099 1,541 2,983 2.511 37 5,610 1,578 2,983 213 213 11431 325 283 42 7,976 2,590 10,566 Support for parish rninistry Mission and Ministry Church and Society Mission and Ministry grants Cooper Le8acy 8ran15 Cooper ArrnstronE Legacy Support services 1,192 77 176 868 2,236 77 26 463 io 1.594 26 463 io 16 J,578 2.847 176 1,383 4,406 10,823 176 3,973 14,972 Expenditure on Education and Church of England Schools Support for church Schools and parishes 546 546 12,145 176 3.973 16,294 88 The Exeter Diocesan Board ot Finance Limited Annu31 Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 A9. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT C05TS120221 Pension Artlvllles Undertaken Grant Funding ot Activitie5 Support Costs £'ooo Fund Adjustment £'ooo Total costs 2022 E'ooo £'ooo RaislnES funds 283 283 Contributions to Archbishop 5 Council Re50urcin8 p3ri5h ministry Education 776 1,415 776 14,972 546 11,963 546 1,594 12,792 2,191 1,594 16,577 Net incomellexpenditurel for the year is stated after charging amortisation £19k, depreciation £22k and audit fees EDBF £23k, EDPS £3k. AIO. ANALYSIS OF SUPPORT COSTS120221 Total fund5 2022 lJftrestri¢ted fvnds General Ilesignated £'o Restricted Fund5 £'ooo Endowmenl Fund5 Central support/Bdministration Governance.. External audir of EDBF External audit of EDP5 RÈ8iStrar and Chancellor Synodical cu5ts 1.428 16 1.444 23 23 99 25 99 25 1,578 16 1,594 89 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 AII. ANALYSIS OF GRANTS MADE12022) Nbr. lnd1vld￿aI5 Institution5 Total 2022 £'oty) £'ooo From unrestricted funds for natSonal Churth resp0Th5ibilities'. Contributlons to Archbishop'5 Covncil 776 776 From unrestr4rted funds-. Ofdinands in training ClerÉy ordination Clergy resettlement Clergy removals Cler8y 15E incumbencv Churches together in Oewon Mission & Gfowth Fund Church schools- Repair51impro¥ements Support for lay workers Transforming Plymouth Together 51 MellitU5 South West Other Small Erants 19 15 28 28 14 iii 38 70 77 33 iii 38 70 77 33 33 33 12 15 35 12 12 15 35 23 33 li 153 340 115 455 From eestrbcted funds for Varlo￿$ purposes within re50urcing parish mini5try.' Cooper LeÉèty Fund Growth & Mission Fund Parish Energy Support grants Repairs and Maintenance Grant Strategic Developmeni Fu*)d Plymourh Partnership in Mi55ion Exeter, St Matys Bay Church io 14 463 26 io 14 463 26 318 108 137 202 108 137 202 338 960 9&J Ttytsi 497 340 1,851 2.191 90 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Statements For the year ended 31 December 2023 NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS Icontinuedl For the year ended 31 December 2023 A20 SUMMARY OF FUND MOVEMENTS120221 Balance5 at I January 2022 Intome Expendilure Tra#sfers Gains and Losses Balantes at 31 e¢èmber 2022 £'ooo £'oc £'ooo E'OOO £'ooo UNRESTRICTED FUNDS General 9.814 12,284 112.1701 11,3471 11.3801 7,201 Church Buildings Fund 6oard Properties ClerÉy Housing Repair5 Oiocesan Mi5510n Funds Oioces3tT M155ion & Growth Fund Clergy Conference F￿nd 8urrin8ton SchoDI Fund Plymouth SDF Project MisCel￿aneo￿s Funds 692 20,776 775 76 167 64 34 53 166 20,148 565 276 628 210 12001 2( 30 156 34 74 166 22,104 868 22,803 RESTRICTED FUNOS Dioces3n Pastoral Account Dioce$8n Stipends Income Bampton School sale 4,204 8Z 2.135 13661 3.905 314 io 259 811 314 io 276 Retired Clergy Housing Growth & Mission Fund Strategic Development Projects li IL 624 273 318 Straiegic Ministry Fund Clergy Widows Cooper Legacy Miscellaneous Restricted Funds 13181 99 16 23 99 527 15471 5,743 3,976 14,0501 5.314 ENDOWMENT FUNDS Permanent Dr Nobbs Expendable Diocesan Stspends Capital Benefice Propertv Church Schoc>ls The Church College Hc>stel Trust 92 82 45,215 26,782 4,368 884 1,253 loo 14 465 8.211 54.693 27,347 3.936 780 11041 77,341 1,353 479 7,665 86.838 EDBF fotal funds 115,002 17.614 116,3961 5.936 122,156 Subsidiafies General Funds EDPS Ltd 181 GroupTotal 115.oti 17,795 116,5771 5,936 122.165 91 The Exeter Diocesan Board of Finance Limited Annual Report & Consolidated Financial Staternents For the year ended 31 Decemljer 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icontlnuedl For the year ended 310ecember 2023 A21. SUMMARY OF A5SET5 BY FVNO12022 Curie As5et5 Net Asset5 YanBlblel Investments Creditor5 Flxed Asset5 £'ooo £'TrJo £'ooo Unrestrlcted funds-General 736 10,400 11.2591 12,6761 7,201 Un¥estrlrted- dtSFgn3ted Church Building5 Fund Board Properties Clergy Housing Repairs Diocesan Mission Funds Mission & Growth Fund aergy Conference Fund Burringion School Fund Plymouth 5DF Project Iscellaneous Desi8nated Funds 117 575 692 20.776 775 76 167 64 34 53 166 20,893 11191 775 79 167 64 34 61 166 20.893 117 1,923 11301 22,803 Restricted C)iocesan Pastoral Account Diocesan StipÈrids Intome Bampton School sale Agricultural/Rurèl Reiired Clergy Housing Grcwth & Mis510n Fund Strategic Oevelopment Fund Project5 2.761 1,144 114 314 io 3,9D5 314 io 276 690 li 346 186 692 47 157 83 78 Strate8ic Ministry Fund Clergy Widows Cotrper LÈ8acy Miscellaneous Restricted Funds 21 99 266 12631 367 2.947 2,655 16551 5,314 Endowment Permanent Or Nobbs Expendable Diocesan Stipends Capital Benefice Propertv Church Schools Church College Hostel Trust 76 82 10,912 25.860 119 43,994 54,693 27.347 3,936 780 1,487 561 3,256 780 36,891 48,106 1,841 86.838 Total EDBF funds 58.887 61,570 5,160 13.4611 12Z.156 Subsidlaries EDPS Ltd 44 Total Group ltsnds 58,88? 61.570 5,204 13.4961 122.165 For Fund Descriptions, please see note 23 on page$ 71- 74. 92