Canterbury Diocesan Board of Finance Trustees, Report and Financial Statements 31 December 2021 Company Limited by Guarantee Registration Numbar 00145650 (Endand and W8lesl Charity Règistration Number 249972 Contents Reports Reference and administrative infomiation Trusl&es' report lincorporaling strategic reporti 3~14 Independent auditor's ￿port 15-19 Financial statements Consolidated st8tèmÈnt of finan¢ial activities 20 Consolidated summary income and expenditure account 21 Balance sheets 22 Consolidated statement of cash ffDWS 23 Principal accounting policies 25-30 Notes lo the financial slalemenls App&ndl¢e$ Comparative consolidated statement of financial activities 53 Comparative notes to the financial statements 54-57 Canterbury Diocesan Board of Finance Reference and administratlvè inftsrniation Trustees Ex-officio Tnjstees The Archbishop of Canlerbury, The Most Revd and Rt Hon Justin Welby The Bishop of Dover, The Rl Revd Rose Hudson-wilkin Mr Patèr Wyllie, Chair lappointed 6 July 20211 Mr Nigel Mansley, Chair Iresigned 6 July 20211 The Dean of Canterbury Cathedral, The Very Revd Dr Robert Willis (resigned 16 May 20221 The Venerable Stephen Taylor, MBE The Archdeacon of Ashford, The Venerable Darren Miller The Archdeacon of Canlerbury, The Venerable Joanne Kelly-moore (resigned 3 08cember 20211 The Archdeacon of Maidslone, The Venerable Andr6w Sewell Mrs Jane Ashton Mrs Miranda Ford lappoinled 1 January 20221 Fiona Higgs lappoirited 1 January 20221 Dr John Moss Mr Philip Sibbald (resigned 6 July 20211 The Revd Carol Smith Elected Trustees Miss Aimee Babbs (resigned 31 December 20211 Graham Codling (appointed 1 January 20221 Thè Revd Gareth Dickinson {appointed 1 January 20221 Mrs Miranda Ford (resigned 31 December 20211 The Revd Eslella Last The Revd Canon Stephen Lillicrap (appointed 1 February 2021, resigned 31 December 20211 Lt Col (Retdl John Morrison The Revd Shiela Porter (resigned 6 July 20211 The Revd Canon Dr Jeremy Worthen (appointed 1 Jantjary 20221 Acting Dl¢¢esan Secretary The Venerable Stephen Taylor. MBE R8glst*Trd address Dittesan House Lady Woollon's Green Canterbury Kent CT1 1NQ Company Registration No. 00145650 {England and Wales) Charlty Registration No. 249972 Auditor Buzza¢ott LLP 130 Wood Street London EC2V 6DL Canterbury Diocesan Board of Finan Pag& 1 Reference and adminlstratlva Information Bankers Lloyds Bank plc 49 High Street Canterbury Kent CT1 2SE Solicitor5 Mowll Ltd Traf8lgar House Gordon Road whi￿le1d Dover Kent CT16 3PN Invèstmènt Managgrs CCLA Investment M8nagemenl Ltd Senator House 85 Quèen Victoria Street London EC4V 4ET Canterbury Dio¢esan Board of Finance Page 2 Trustèg$' report (incorporating the strateglc reportl Year $nded 31 December 2021 The Trustees present their annual report lin¢orporating the strategic report for Companies Act purposes) together with the audited financial statements for the year ended 31 December 2021. The report has bean prepared in accordance with Part 8 of the Charities Act 2011 and constilules a directors, rèport for the purposes of company18gislation. The finan¢i81 statements have been prepared in accordance with the principal accounting policies set out on pages 25 10 30 01 the attached financial slalemenls and comply with the charitable Company's Memorandum and Articles of Association, applicable laws and Accounting and R¢porting by Charilies.- Statement of Recommended Practice applicable lo charities preparing their a¢¢ounls in accordance with the Flnancial Repo￿n9 Standard applicable in tha UK and Republic of Ireland IFRS 1021. SUMMARY INFORMATION ABOUT THE STRUCTURE OF THE CHURCH OF ENGLAND The Church of England is organise(l as two provinces ea¢h led by an archbishop - Canterbury for the southern province and York for the northem. Each province ¢omprises dioceses, of which there are 41 in England. Each diocese is divided into deaneries and each deanery into parishes., and each parish is overseen by a parish priest lusually called a vicar or rector}. From ancient times through lo today, they and their bishop are responsibl& for the "cure of souls" in théir parish. Her Majesty the Queen, who is the Supreme Governor of the Church of England. appoints ar¢hbishops, bishops and deans of cathedrals on the 8dvi¢e of the Prime Minister. The Lords Spiritual, consisting of the two archbishops and 24 of the senior bishops sit in the House ol Lords. The Church of England is episcopally-led., it is led by the Archbishops of Canterbury and York and there arè a further 106 bishDPS including Diocesan 8ishops and SLJffragan Bishops. It is governed by General Synod as its legislative and deliberative body al national level. making decisions on matters of doctrine, the holding of church services and rèlations with other churches. Genaral Synod passes measures which, if accepted by Parliament, have the affèct of Acts of Parliament. Its members belong to one of three groups or houses.. The House of 8ishops. The Housè of Clergy and the House of Laity, and General Synod meets in London or York at least iwice annually to ¢onsider matters fo¥ the broader good of the Chur¢h. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution Canterbury Diocesan Board of Finance ICDBF, the charity or the Board) was incorporated as a company on 29 December 1916 to manage the financial affairs of the diocese and lo hold its assets. Every member of Diocesan Synod is a member of CDBF for company law purposes, and similarly Archbishop's Council comprises the Trustees. The Board is a company limited by guarantee and as such has no share capital. The Board is a registered charity and its Trustees are the same people who servg as the Board of Diiectors for Company law purposes. The Board together with ils subsidiary entities comprises the 'group'. The prin¢ip81 object of the charity and the group is lo promote and assist the work of the Church of England for the advancement of the Christian faith in the Diocese of Cantarbury. Malhod of appointment or electlon of Tru5tee5 Thè management of the charity and the group is the responsibility of the Ttuslees who are elected and co- opted under the temis Df the Arkncles of Association. Canterbury Diocesan Board of Finance Page 3 Trustèès, rèport (incorporating the strategic report) Year ended 31 December 2021 STRUCTURE. GOVERNANCE AND MANAGEMENT Iconb'nuedl Policie5 adopted lor the induction and training of Trustees Al the first meeting of the triennium, the triennium for the Trustees being the period January 2022 10 D8o8mber 2024. lime is set aside for the induction and training of new Trustees and further training is provided where necessary during the Iriennium to ensure that all Trustees are kept fully informed of their responsibilities. Diocesan officers are always on hand to advise Trustees on supplementary issues. Trustees, remuneration The Trustees do not receive remuneration for their roles as trustees of the charity. The clergy members of the Board, as offi'ce holders within the diocese, receive housing and stipands as part of their clergy rolè. Organisational structure and declslon maklng The Board, as Archbishop's Council, is responsible for working with the Bishop of Dover lo shape the diocesan strategy and lo monitor the Outr￿0￿(Ing of that strategy. It sets overall objectives and priorities. The outworking of those objectives and sirategies for the Oiocese of Canterbury is conducted through four overarching frameworks. The frameworks Isee below under policies and objectives) meet frequently to plan their own priorities and make appropriate decisions in Support of the overriding strategies and objectives of the Diocese of Canterbury. The principal officers manage the day-to-day adminislralion in ¢onjun¢tion with Archbishop s Council and respective frameworks as appropriate. The remaining staff assist in adminislralion. Related party relationships CDBF makes contributions to the national Archbishops, Council towards the running costs of the National Chur¢h. The stipends of all parish priests are paid initially by the Church Commissioners and these are r$imbursed by CDBF. The stipend of the Bishop of Dover together with the stipend of the Chaplain, the salaries of the Bishop's office staff and the Archdeacon of Maidslone's stipend are botne by the Church Commissioners. The stipend of the Ar¢hdgacon of Canterbury is bomè by the Dean and Chaptèr of Canterbury Cathedral and is not included in these fin8n¢ial slalements. The Board Considers that the following are subsidiary ¢ompani&s or conneded charities". Subsidiary Companies.. Canterbury Diocesan Enterprises Limited ICDELI Dio¢esan Archit8clural SeTvice Limited IDASLI Ethos School Improvement Limited leSILI Togèthèr Kènt (with 8ffa¢t from 1 March 20211 Conne¢ted Charities: Together Kent (until 28 February 20211 The Diocese of Canterbury Academies Company Limited IDCACLI Canterbury Oiocesan Board of Finance Page 4 Trusto•s' ￿pOrt lincorporatlng thè Strategic report) Year ended 31 December 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT Icontinuedl Rlsk management The Trustees have assesstrd the major risks to which the charity and th8 group ar8 èxpos8d, in particular those related to th6 op8r8lions and finances of the charity and thè group and are satisfied that appropriate systems and procedures are in place lo mitigate exposure to the major risks. The Trustees, through the Finan￿ and Assets Committee. undertook a ¢omprehen5ive review of the strategic. business and operational risks in 2021. The key risks facing the Board of FInan￿ are.. • Non-payment of full Parish Share. The Trustees continue lo pay careful attention lo the Parish Share Scheme which determlnes the allocation of contributions needed from èach parish lo maintain the general fund. The Trustegs also monitor on 8 regular basis the collection rale of contributions received from individual parishes, with view to identifying at an early stage those parishes which are likely to have difficulties in meeting their Parish Share. A strategic review has led to an overall reduction of some 1 D /0 in the Parish Share requested from parishes in 2022. which should resutt in a lower monetsry shorttall in 2022. + A failure to take appropriate safeguarding precaLJtions and implement sults￿e policies to protect all those who come within thts care of our churches. CDBF takes 9xlremely seriously the need for strong $8feguarding Procedures and controls. The Trustees are responsible ultimately for overseeing the implementation and review Df policiès and procedures for safeguarding children and vulnerable adults throughout the diocese., and for developing and maintaining good practice in relation to the safaty and welfare of children. young people and vulnerable adults. Th8re is in place a new structur& with an Independent Safeguarding Chair and policies that ensure full rigor when addressing safeguarding issues. The lessons learned from historic sexual abuse cases continue lo reform the way the Church of England, and the CDBF do things. All Church officers, TrLJStees, staff and volunteers are trained in di0¢8san safeguarding policy and best practice and the Diocesan Safeguarding Advisors are available to give advice. There are clear procedures in place for reporting all safeguarding con¢èrns. • IT and systems failures. The Trustee5 are aware of the threat posed by those with malicious intent and cyber-security is taken Véry seriously. The Trust&gs are aware also of the need to ensure thè stronggst possible defen￿S against attack including the upgrading of software and hardwar8. To strengthen OUT defences against attack, via malicious emails and phishing attacks, staff are trained to follow best practice and lo be alert to malicious èmails 8nd other potential IT risks. We have an ICT board which keeps cyber security and related issues under review. Canterbury Diocesan Board of Finance Page 5 Trustees, report lincorporating the strategic report) Year ended 31 December 2021 STRUCTURE. GOVERNANCE AND MANAGEMENT Icontinuedl Risk managem¢nt l¢onlinuedl • The charity's kèy assets comprise properties and listed Investments. Cash flow issues may arise b8caus& of the timing of Capital transactions and poor investmént ￿rf0m13nce may lead to losses being incurrèd. Property maintenance is of key importance, ensuring that the buildings are maintained to a high standard and that prevenlalive action is taken before fnatters become real problems. The charity has a highly skilled Property Team with many years of experience looking after residential, office and historic buildings. The timing of property transactions is planned carefvlly lo ensure that they do not give rise lo adverse cash flow issues. The value of the charity's lisleLt investments is dependent on movements in the UK and worfd sto¢k markets. The charity's financial position, therefore, is exposed to the downside risk attached to such inveslmenls. To control against this risk. the charity's investments are managed by reputable investment managers who adhere lo a policy agreed by the Truslètss. Represèntatives of th6 charity meet with th8 investment fflanagers on a regular basis lo monitor performance and to discuss the charity's investment strategy generally lo ensure it remains appropriate- both now and into the future. OBJECTIVES AND ACTIVITIES Policies and objective5 In planning th8 activitiès of thè charity for thè year, th& Trustees have considered the guidance on public benefit issued by the Charity Commission. In common wilh the Church Of England, the diocese strives to ensure that in every local community there is a WDrshipping, welcoming and serving congregation, working with Christians of other traditions and people of goodwill, witnessing lo the transforming power of tho love of God as seen in Jesus. Our strategic document approved by Synod in 2021 is callgd Towards a Flourishing and Sustainable future with 'Changed Lives-kchanging Lives, as its strap linè. It contains the following vision statement for our diocese= By God's gracè wé want to b8 a peopl& who arè... .¢onfident & creative dis¢iples of Jesus Christ .rooted in s¢ripture and drenched in prayer .living gratefully, giving generously, caring for creation & sharing the gospel .growing in number & expectations of God and oursèlv8S .motivaled by jusli¢e & open to the Spirf( & ready for adventurel Therefore we will1. Therefore we will.. is a recognition that words without action5 are ernpty. It is a COtnmitm*nt to iaking real steps now to make thi5 vision a reality 500n. We encourage all parishes to C0Tr5ider this vision CBrefullyfor themselves, to explore together what actions they will commit to t3ke ?nd what their local Together we will... Canlerbury DI0￿$an Board of Finance Page 6 Trustee5' rèport (incorporating thè strategic report) Year ended 31 December 2021 OBJECTIVES AND ACTIVITIES Iconlinuedl Polic1•$ and objectives Iconlinuedl The Flourishing and Sustainable Future documènt cre8ted a Blueprint for our strategi¢ themes, and these are.. 2417 discipleship, Prioritising children & young people, Mutuality & Parish Share, Review central and support services Ministry- lay and ordain Structures & organisalion Church revilalising & planting Church buildings Engaging with disadvantaged communities Social & 8nvlronmental jusli¢e There is a Strategic Programmè Board that meets ￿gUlarlY lo oversee progress on our strategic themes and the frameworks and cleaneries are the key agents of delivery and change. In addition to thè Board of Education there are 3 frameworks within the diocesan organisation which support deaneries and parishes in their mission. • Mission and Ministry Communities & Partnerships Children and Young People The National Church has extended ils grant for our Ignite initialives to 2023 and also for our Strategic Programme Manager. Grant making policlès The dioGese through its Mission Resources Group allocate the ChLJrch Comtnissioners Lowest Income Communities ILlnCI ftjnding award1£800k+l lo the neediest parishes, either with Parish Share or towards a post. W& make a modest grant towards thè Deaneries for their adminislralion. The SCA Ischool Condition Allocalionl system was introduced in April 2020 and superseded LCVAP IL¢)cally Co-ordinated Voluntsry-Aided Programmel. The SCA grant funding is recognised as income in the Statemènt of Financial Aclivities along with the related ¢ommitted expenditure. Canterbury Dlocesan Board of Finance Page 7 Trustèès, rèport lincorporating the Strategic report) Year ended 31 December 2021 OBJECTIVES AND ACTIVITIES Icontinuedl Raising funds The charity raises funds through Parish Share and on occasion receives other donations and voluntsry income. It aims to achieve best practice in the way in which it communicates with parishes, donors and other supporters. It takes care with both in the tone of its communications and the accuracy of its data lo minimise the pressures on parishionèrs, parochial church ¢oun¢ils, donors and supporters. It appli&s bttsl practice to protect thfyir data and never sells data, il never swaps d8la and ensures that ec>mmunicalion preferen¢es can be changed at 8ny time. The charity manages its own activities in respect to raising funds and does not employ the services of professional fundraisers. The charity undertakes lo react lo and inv8stigale any cofflplainls regarding ils activities for raising funds and to learn from them and improve its sèNice. During the year, the charity received no formal complaints about its activities for Taising funds. ACHIEVEMENTS AND PERFORMANCE Key financial performance indicators Current year Parish Share reGeipls represent 87.7&/0 of the total apportioned 12Q20 - 86.80/01 or. when deferred rèc8ipts for prèvious years are included, 90.1Vo12020 _ 88.00/tsl- This shortfall of 9.90/012020 12.hl represents £830k12020 - £1.Qml in cash terms. Our aspiration is always lo collect lo0.￿ of Parish Share. Review of actlvlties The diocese continues to strive to resource effective mission, minislry and growth throughout its parishes. Working with Deanery Plans, many parishes and deaneries are capturing the vision for new approaches and new forms of Church which is transforming growth and spiritual development. Wherever Possible. archde8￿n5 and diocesan officers Isomelimes acting as deanery accorllpaniersl woik closely with de8n8ries lo re-energise the rnission and ministry of struggling parishes. There are ￿anY cases now where mission plans have been agreed and Iransilional finance provided which has transformed Christian communities in bringing about hope, where seerningly all had been lost. However. there are still cases where parishes are struggling lo resource an effective mission and ministry to their community. We had an average of 129 paid clergy in 2021 and 135 a¢tive voluntary Readers at the end of 2021. Our Deepening Discipleship Course provides a way of listening to God's voice about calling and serving and many go on to seNe in a variety of ways inside and outsid& the church. In 2021 we have continued to provide timely and responsive safeguarding support and advice to clergy and their tèams across the diocès8 which includes 2417 out of hours support for the di0￿Se and cathèdral which negatès the nèèd for the diocese lo commission an exl&mal agtrncy to provida this. This helps lo provide a responsive and prevenlalive safeguarding inlervenlion. Vve also condu¢ted over 800 DBS IDis¢losure and Barring Service) checks, which contributes toward5 keeping our ¢hildren and vulnerable people safe in our churches. In addition lo this, 2D21 saw the completion of our Past Cases Review {21. Canterbury Diocesan Board of Finance Page 8 Trustees, report lincorporating the stratsgic report) Year ended 31 December 2021 ACHIEVEMENTS AND PERFORMANCE Icontinuedl We held our first online Annual Safeguarding Conference in January 2021 which saw nearty 200 delegates allend, further moving the cultLJrè in the diocese of being onè that is as safe as il can be wth an ernphasis on prevention. rather than just rèsponding and reacting to issues of safeguarding and abLJse. As a service we have aclapled our ways of working, making full use of the technology available to us so that we are nimble in our approach and responsiveness. Our misslonal leaming communities have brought together groups of Christians across churches IoDking to change the culture to lay foundalions for future growth. We continu8 to support our ¢omrllunities through a wide range of partnerships with other organisations such as the work being done by Domenica Pe¢oraro with Refugee and Asylum Seekers which has bean both timely and exceptional. We provide many online'pray&r resources for individuals and parishes bringing together a prayor diary and seasonal prayers, readings and reflections. The face of ministry is changing as ordained clergy help èqulp and enable the ministry of averyone lo $n5ure the Church is a Monday to Saturday Church, as well as a Sunday Church and is susiainable into the future. The imp8¢t of Coronaviius ICovid-191 has provided further impetus to reimagine ministry. Covld-19 Covid-19 had a global impact in 2020 and 2021 and signifi¢anlly affected our operations. It is now our hope that the serious Issues Ihal arose are behind us and we look forward to growing the Church as things return lo normal. Income generatlon The diocese re￿iVed 85 /0 of its unreslricled income (éxcluding the £222.000 grant from Archbishops. Council) from Parish Share. which is a voluntary payment from parishes. A review of Parish Share was completed in 2020 and recommended no change to the Current methodology. The Church Commissioners allocatg lowest income community funding grants to the poorèst dioceses and Canterbury rec&ived a grant of £818,393 in 2021 12020 - £791,000). The diocese received an allocation from Benef8¢t Iforrnerly Allchurch&s Trust) Df £127,000 in 2021 12020 - £125,QOOI whi¢h supports our diocesan strategic projects. Investmènt policy and p8rforman¢e An improvernenl in investment markets in 2021 resulted in an increase in the value of our listed investments of £901k compared with an increase of £253k in 2020. This has resutted in the value of our listed investments increasing lo £7.2m. The majority of listed investments are held in two funds at CCLA. The CBF Church of England Investment Fund outperformed the benchtnark of CPI plus 5°h for the year and the CBF Church of England Property Fund also outperfomied hs comparator benchmark for the year. Canterbury Diocesan Board of Finance Page 9 Trustees, report lincorporatlng the strategic report) Year ended 31 December 2021 ACHIEVEMENTS AND PERFORMANCE Iconlinuedl The investment policy for 2021 was.. To keep surplus liquid funds on short term deposit To maintain holdings of longer-term investfflents al the following levtsls- & Investment FLJnd1750101 Q Property Fund125%1 • To pool invèstments across tho funds of the diocesg so thal retums on investment are consislenl and not depen¢Jent upon the levels and (5enotnination of investment held. The portfolios are reviewed with CCLA Investmènt Management Limited every year. Investments held by the Board have been acquired in accordance with powers available lo the Trustees under the Memorandum and Articles ofAssociation. FINANCIAL REVIEW Introductlon Archbishop's Council continues to work diligently to secure the financial position of the diocese whilst al the same time promoting effective mission. ministry and community throughout the area. The Church of England exists lo promote the Gospel of Christ in every comrnunily and the diocese sees that the furtherance of that aspiration is the only way lo secure the future of the Angli¢an Church in this diocèse. The Board's subsidiary company. Cantaibury Dioc8san Enterprises Limited ICDELI, is responsible for adopting a strategic approach lo all property asseis and maximising the value of any dispos81 proceeds. This company continues to work on several key projects and advises on property aspects of pastoral reorganisation and it continues to deliver vilal resources to help the work of CDBF. The total funds of the diocese include the value of all benefice parsonages within the paTishes and these were valued al £69.Om in 2021 12020 - £67.6ml. CDBF is engaged on a rolling five-year process of revaluations of these properties. These properties are included in endowtnent funds ￿COgniS1n9 that thgy remain benefice property, although should they cease to be used as ministry houses then ownership is usually transferred to CDBF unreslricled funds. Results for the year Total income for the year amounted lo £11.8m, a decrease of £0.7m comparèd with 2020. The decr&as8 was driven primarily by a reduction of £0.4m in Covid-19 support grant from Archbishops. Council and a decrease in restricted education income of £Q.2m. The Parish Share collected in 2021 was slightly higher in both monetary lerrns and as a ptrrcenlage of the Parish Share requested than 2020. Other sources of income congist of other grant income, investment income, property rentsl income, parochial fees for weddings and funerals and the income for work done for third parties by the charity's subsidiary companies. Such income remains very important and is an essential conlribulor in keeping Parish Share requirements lower than they might otherwise be. Canterbury Diocèsan Board of Finance Page 10 Tru$t•es' report (incorporating the strategic rèport) Year ende(131 December 2021 FINANCIAL REVIEW Iconlinued} Results for th• year I￿ntinued) Expenditure for thè year lolalled £1 f.5m compared lo £11.3m in 2020. Unrestricted expenditure rncreasecS by £0.2m, driven by an increase in Parish Ministry expenditure. Nel income for the year decreased by £1.Om lo £0.2m before investment gains of £0.9m, gains arising on the revaluation ol pension fund liabilities of £0.4m and gains of £6.Dm arising tsn tho revaluation of benefice properties were taken into accDunt. The combined resLJIt of these mov&ments was an increase in n¢1 assetslreserves of £7.5m from £92m to £99.5m. Under FRS 102 the Board is required lo account for any deficit in th& Clergy and laity pension fund schemes. These provisions a￿ £0.22m12020- £0.46ml for the dio¢ese's proportion of the national clèrgy s¢hem& and £0.12m12020- £0.53ml for our proportion of the staff scheme. Financlal po$ition The consolidated balance sheet show9d total funds at 31 December 2021 of £99.5m 12020 - £92.Oml comprising: 2021 2020 General funds (including non-charitsble trading fvndsl Designated funds Restricted funds Endowment fvnds 3,594 16,651 2.296 76,936 99,477 852 14,519 1.756 74,863 91,990 The above figures include endowment funds of £76.9k12020- £74.gml, the principal part of this being the benefice prO￿rtIeS amounting to £69.1 m12020- £67.6ml. Where income aiises from these funds, it may be used lor gèneral purposes ofthe charity and therefore is credited to unrestricted funds. The endowment fund balances must normally be held as '¢apital' but, where permitted, may be applied towards meeting certain charitable aims. Aso included in lotsl funds are restricled funds lotalling £2.3m12020- £1.8ml. These monie5 have either been raised for, and their use reslricled to, specific purposes or they comprise donations subject to donor- imposed conditions. Further details of these rsslricled funds can be found in note 20 to the financial staternents together with an analysis of movements in the year. Funds totalling £16.7m 12020 - £14.5m} have been designated by the Trustees for specific purposes. These purposes and an analysis of th8 tnovernenls on the funds are sel out in note 20 to the finan¢ial statéments. The Trustees are aware that most of the designated funds are represented by ministry housing and in 2021 they reviewed their policy on the sale of empty property lo improve the level of working capital. General funds linduding non-oharilable trading funds of £1 Okl total £3,$94k12020 £852kl- Excluding gains on disposal. revalLJalion of investments and fLJnd transfers, general funds decreased by £197k for the year12020- increase of £429kl. Canterbury Diocesan Board of Finan Paga 11 Trustees. report Ilncorporatlng the strategic report) Year ended 31 December 2021 FINANCIAL REVIEW l¢onlinued) Reservès polley Thè Board's polioy is to hold working ¢apital Inel ¢urr8nl assets) of be￿￿een 15QA and 20Yts of its annual budgeted expenditure. In 2021 this would requiT8 working capital of bett￿een £1.3m and £1.8Tn. This amount is regarded as the minimutn neGe55ary lo enable the Board to withstand cash flow fluclualions in the course of its nor￿al business. Al the end of 2021 the Board's working capital was £3.3m 12020 £1.7ml. Going concern The Trustees have assessed whether the use ofthe going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in resp&¢t lo a period of at least on& year from the date of approval of these financial statements. The Trustees, mindful of Covid-19, have concluded that Ihtrre are no material Un￿rtaInlieS related lo events or conditions that may cast significant doubl on the ability of the charity lo continue as a going concern. The Trustees are of the opinion that the ¢harity will have sufficient resources to meet its liabilities as they fall due. This is because the ¢h8rity has suffi¢iant investments which can be realised in the short term lo mo&1 liabilities should 8 shortfall in in¢omè arisè. In addition, the charity has designated reserves of £16.7m, including £15.2m designated lor ministry housing. If necessary, some properties could be undesignated and sold to meet any cash flow shortFall should Ihis be ne￿SSary in the medium term at that time. For these reasons the Trustees continue lo adopt the going cOn￿M basis in preparing the financial statements and have concluded that there s￿ no material uncertainties related lo events or Conditions that may ¢asl signifi¢anl doubt on the ability of the charity to continue as a going concern. Pay policy for senior staff Senior Glergy are paid according to stipend scales set by the national church. The stipends for the Bishop of Dover and the Archdeacon of Maidstone lin lieu of the unused Bishop of Maidstone postl are borne by the Church Cotnmissioners. The stipend of the Arehdeacon of Canterbury is borne principally by Canterbury Cathedral. The stipend of the Archdeacon of Ashford is bome by CDBF. CDBF uses 8 system ofjob evaluation to grade staff appropriately. CDBF regularly looks atlhe local market in terms of bÈn¢hmarking salaries to ensLJre staff are paid a fair wage for fair work and 8s such $8laries may move with the market throughout the year. The HR Committee then formally agrees the appropriate salary in the light of these variables. Key management personnel arè definad as tha Trustees together with those employees listed in note 13 to the atta¢heLI financial slalements. CanterbLJry Di0￿san Board of Finance Page 12 Trustees, report lincorporatlng th¢ strategic report} Year endad 31 D￿9mber 2021 FINANCIAL REVIEW l¢onlinuedl PLANS FOR THE FUTURE Future developments The Archbishop's Council will continue lo pursue the strategy'changed Lives Changing Lives, still further in line with Bishop Rose's episcopal leadership. The Council will look to obtain funds for the different project strands both frorn th¢ Church Commissioners and other charities as well as re-allocating diocesan resources. We have a Strategic Programme Board that oversees progress on each strand. Below that wè have programme boards lin some cases 'frameworks"I that focus on particular strands. We are aware that the level of futuie retirements of clergy and, consequendy. our 'Enri¢hing leadership. strand is particularly important for us to dèvelop a mixed economy of leadèrship in our churches and parishes. W8 will also work lo implement the vision and ideas in our recent r&port"Towards a Flourishing and SLJslainable Future.. As part of the resourcing of this strategy, the Trustees will continue to look for ways lo develop the CLJrrènl Diocesan HoLJse lo better enable modern team b8sed collegiate working and changes have already bèen made to accomplish this. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The Board acts as Custodian Trusté8 in respect of trusts administeréd on behalf of managing trusteès, which includes in¢umbents, churchwardens, Parochial Church CoLJncils and other organisalions of the diocese. The assets held in the capacity of Custodian Trustee include freehold property and investments. The Boar(J also administers funds, on behalf of Parochial Church Councils, on an agency basis for investment and obtains income tsx repayments, relating to Gift Aid, on behalf of parishes and other diocesan organisalions. The tax recoverable during 2021 was £1.1m12020- £1.5ml. In 2000 the Board arranged for the Central Board of Finance to take over the administration of investments held on behalf of parishès, except fof Endowment Funds. The Board is still administoring investments with a book value of £3.2m 12020 - £3.1ml. The assets of these funds are held separately from those of the Board. TRUSTEES. RESPONSIBILITIES STATEMENT The Trustees (who are also dire¢tors of Canterbury Diocesan Board of Finan￿ for the purposes of company lawl are responsiblè for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Genèrally Accepted Accounting Practi￿1. Company law requires the Trusless lo prepare financial statements for each financial year. Under company law the Trustees must not approve the financial ststements unless they are satisfièd that they give a irue and fair view of the state of affairs of the charity and the group and of the income and expenditure of the group for that period. In preparing these financial slalemenls, the Trustees are required to.. Canterbury Diocesan Board of Finance Page 13 Trusto&s' rèport (incorporating the strateglc rsportl Yèar ended 31 De¢embor 2021 TRUSTEES. RESPONSIBILITIES STATEMENT Iconlinuedl select suitable accounting policies and then apply them ¢onsistenlly', observe the methods and principles in Accounting and Reporting by Charilies.. Statemènt of Recommended Practice applicable to charities preparing their accounts in a¢¢ordants with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021,. mak8 judgments and accounting estimates that ar& reasonable and prudent; statè whether applicable UK Accounting Standards hava b88n followèd, subjact to any material departures disclosed and explained in the financial stal8mgnts'. prepare the finan¢ial slalemenls on the going concern basis unless it is inappropriate to presume that the charilabltr group will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient lo shDW and explain the charity and the groLJP'S transa¢lions and disclose with reasonable accuracy al any time the financial position of the charily and group and enable them lo ensure that the financial slalements comply with the Companies Act 2006. Thèy arè also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and dele¢tion of fraud and other irregularities. DISCLOSURE OF INFORMATION TO AUDITOR Each of the pèrsons who are Trustees at the time when this Trustees, report is approved has confimed at.. so far as that Trustee is awar@, there is no relevant audit information of which the charitable group's auditor is unaware, and the Trustee has taken all the steps that ought to have been taken as a Trust88 in order to b8 aware of any relevant audit information and to establish that the Charitable group's auditor is aware of that Information. AUDITOR Buzzacoit LLP was reappointed as statutory auditor on 14 July 2021 and has indicated its willingness to continue in office and a resolution proposing its reappointment will be put to the Annual General Meeting. This report. incorporating the Strategic Report. was approved by the Trustees on 11 June 2022 and signed on their behalf by.. Peter w￿lIe Trustea Canlert)ury DI0￿San Board of Finance Page 14 Indap•ndent auditor's report Year ended 31 Decembor 2021 Indèpendent Auditor's Report to the Members of Canterbury Diocesan Board of Finance Opinion We have audited the financial statements of Canterbury Dioc$5an Board of Finance Ilhe 'charitablè parent ¢ompany'l and of Canterbury Diocesan Board of Finance and ils subsidiaries Ithe 'group'l for the year ended 31 De￿rnber 2021 which Comprise the consolidated statement of financial activities, the consolidated summary income and expenditkjrè a¢¢ounl, the consolidated and charitable parent company balance sheets, tho consolidated statement of cash flows, the principal accounting policie5, the notes to the financial statements and the appendi¢es. The financial reporting framework that has been applied in their preparation is applicablfr law and United Kingdom A¢counling Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Iroland, (United Kingdom Generally Accepted Accounting Practi¢e}. In our opinion, the financial statements.. • give a true and fair vi8w of the state of affairs of the group and of the charitable pa￿nI company as at 31 December 2021 and of the group's in¢ome and expenditure for the y&ar then ended- + have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and • have been prèpared in accordancè with the requirements of the Companies Act 2006. Basis for opinion We condu¢led our audit in ac¢ordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitios under those standards are further described in the auditor's responsibilitiès for the audit ol the financial ststements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our othei ethical responsibilities in accordance with these requiremenis. We believe that the audit evidenG8 we have obtsined is suffiaènl and appropriatè lo provide a basis for our opinion. Conclusions relatlng to going concern In auditing the financial slalements, we havè ¢oncluded that the Trustees, use of the going con￿rn basis of accounting in the preparation of Ihe finan¢i81 slalements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating lo events or conditr'ons that, individually or collgctively, may cast significant doubt on the charitable Company's ability lo continue as a going concern for a period of al least twelve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of the Trustees wkh respect to going concem are described in the ￿levant sections of this report. Canterbury Diocesan Board of Finance Page 15 Ind•pènd&nt audltorf$ report Year ended 31 December 2021 Other informatlon The Trustees are responsible for the other infomialion. The other information comprises the information included in the Trustees, Report and Financial Slalemenls, other than the finanGial statements our auditor's report Ihereon. Our opinion on the financial slalements does not cover the other information and, except to Ihe 8xtènt otherwise explicitly slated in our report, we do not exprèss any form of assurance conclusion thtrreon. In Connection with our audit of the financial slatemenls, our responsibility is lo read the other information and. in doing so. consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears to be maleria15y misstated. If we identify such material inconsistencies or apparent material misstatemenls, we are required lo determine whelherthere is a rnaterial misstatement in the financial statements Dr a material misslalemenl of the other information. If, based on the work we have perfomed. we CDnclude that there is a material misstatement of this other information. we are required to report that fact. We h8ve nothing to report in this regard. Opinions on other matters pr8scrlb8d by thè Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. • the information givèn in the TrLJSteès' report, which is also a directors. raport for the purposes of company legislation, for the financial year for which the fin8n¢ial statements are prepared is consistent with the financial statements., and • the Trustees. report, which is also a directors. report for the purposes of cotllP8ny legislation, has been prepa￿d in a¢¢ordanGe with applicable legal requirements. Matters on which we are required to report by exception In tho light of the knowledge and understsnding of the group and the charitable parent cotnpany and its environment obtained in the course of the audit, we have not identified material misslalements in the Trustees, report. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to you if, in our opinion.. • adequate accounting records h8ve not been kept by the ch8rit8ble parent cotnpany. orretums adequate for our audit have not been received from branches not visrf£ed by us., or • th& charitable parent company financial statements are not in agreement with the accounting records and returns., or + certain disclosures of Trustees, remuneration specified by law are not made,. or • w8 havè not rae8iv8d all thè information and explanations we requi￿ for our audit. Cantèrbury Dioc8san Board of Financtr Page 16 Ind*￿ndent auditor's rèport Year endad 31 December 2021 Responslbrlitiès of Trustees As explained MO￿ fully in the Trustees, responsibilities statement in the Trustees, report, the Trustees are reS￿nSIble for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlemal control a5 the Trustees determine is necessary lo enable the preparation of financial stslernenls Ihal are free from material misslalemenl. whether due to fraud or e￿0[. In preparing the financial statements, the Trustees are responsible for assessing the group's and Ihe charitable parent company's ability lo continue as a going concern, disdosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the charitable parent ¢ompany or to cease opèrations, or have no raalistic akernalive bul lo do so. Auditorfs rèsponsibilities for the audit of the financial statements Our objectives are to Dbtain reasonable assurance about whether the finan¢ial slaltrments as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement when it exists. Misstatements can arise from fraud or error and a￿ ¢onsidered maleTral if, individually or in the aggregate, they could reasonably be expe¢l&d lo influence the economic decisions of users takgn on the basis of these financial stalemenls. Irregularities, including fraud, are instances c>f non-compliance with laws anLf regulations. We design procedures in line with our responsibilities, Okjtlined above, lo detect material mi5slalements in respect of irregularit19s, induding fraud. The extent to which our procedures are capablè of detecting irregularitlè5, including fraud is detailed bèlow. Our approach lo identfying and assessing the risks of material misslaterllenl in respect of irregularities. including fraud and non-compliance with laws and regulations. was as follows.. • the audit partner ensured that the engagement team collectively had the appropriate competence, ¢apabilrf(ies and skills lo identify or recognise non-compliance with applicable laws and regulations., • we identified the laws and regulations applicabl& lo the charitable company through discussions wth Trustees and man2gemenl, and from our commercial knowledge and experienee of the sector.. + we focusèd on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of thè Charitable company, including the Charities Act 2011,. the Companies Act 2006,. Church Assembly and General Synod Measures., and safèguarding regulations- • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspe¢ting legal co￿eSpondence., and • identified laws and regulations were eommunicaled within the audit team regularfy and the team remained alert lo instances of non-wmpliance throughout the audit. Canterbury Diocesan Board of Finance Page 17 Independent auditorfs rgport Year ended 31 Decembei 2021 Auditor's responsrbilit18s for the audit of the finan¢ral ststements l¢ontinuedl We assessed the SLJsceptibility ol the ¢harilable company's financial statements to material misstatemelll. including obtaining an understanding of how fraud might occur. by: • makin9 enquiries of manag&m8nl and represenlaliv&s of thosa ¢harg8d with governance as to wher& they considered there was suscoplibilily to fraud, their knowledge of actual, suspected and alleged fraud,. and • considering the internal Controls in place lo miligale risks of fraud and non-compliance with laws and regLJlations. To address the risk of fraud through management bias and override of ¢ontrols, we= • performed analytical prO￿dureS to identify any unusual or unexpected financial relationships.. + tested journal entries ID identify unusual financial transactions., • assessed whelherjudgomenls and assumptions mado in delormining tho ac¢ounting estimates set out in the accounting policies were indicative of potential bias., • performed substantive testing on expenditure,. and + investigated the rationale behind significant or unusual financial transactions. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, bul were not limited to.. • agreeing financial statement disclosures to underlying supporting documentation. • ￿adIng the minutes of meetings of those charged with governance., • enquiring of manag8m8nt and rèprès8ntatw8s of thos8 charg8d wth gov8rnance as lo actual and potential litigation and claims.. and • reviewing correspondence wth HMRC and the charitable company's legal advisors. There are inherent limitations in our audit procedures described above. The More removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non- compliance. Audib'ng standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of Trustees and rnanagement and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud Can be harder to detect than those that arise from error as they may involve deliberate concealment or Collusion. A further description of our responsibilities for the audit of the financial statements is located on the Finan¢ial Reporting Council's website al www.fr¢.org.ukJauditorsresponsibiif(ies. This description foms part of our auditor's report. Cantérbury Diocesan Board of Finance Pagè 18 Independant auditor'5 report Year ended 31 December 2021 Use of our report This report is made solely to the ¢harity's members, as a body, in accordance with Chapter 3 Df Part 16 of the Companie5 Act 2Q06. Our audit work has been undertaken so that we might state to the Charity's members those matters w& are required to State to them in an auditor's report and for no other purpose. To thè fullest extent permitt&d by law, we do not aceepl or assume responsibility to anyonè other than th¢ charEty and the charity's members as a body, for our audit work, lor this report, or for the opinions we havo formed. Catherine Biscoe (Senior Slalutory Auditorl For and on behalf of Buzza¢ott LLP. Statulory Auditor 130 Wood Street London EC2V 6DL Date: 14 June 2022 Cantèrbury Diocesan Board of Finance Page 19 Consolidated statement of flnanclal activltiès Year to 31 December 2021 Total fund$ 2021 £'ooo Total funds 2020 £'ooo Unrestricted Restricted Endowment funds furtrds funds £'ooo £'ooo £'ooo Notes In¢ome and endowments from.. Donations and grants.. Archbishops, Coun¢il Other donations and grants Charitable activiti85 Other trading activities Inveslrnents and interest Other Sources Total Income and endowments 222 7,687 816 170 205 88 9.188 222 9.587 1,445 170 239 88 665 9,442 1,434 300 223 453 12.517 1,900 829 34 2,529 34 11.751 ExpÈndlture on: Raising funds Charitable activitl8S Tolal expendlture 321 9.053 9,374 321 11.182 11.503 330 10,944 11,274 2.095 2,095 34 10 34 Net lexpenditurel income before Investment galns Net gains on investments 11861 226 434 106 1.243 423 16 569 901 Net Income before transfers Trdn5fers b8tW88n funds 40 4.501 540 569 14.5011 1.149 1.666 20 Net income lexpenditurel forthe year 4,541 540 13,9321 1,149 1,666 other recogni5ed gains and losses: Gains Ilossesl on r8valuation of ￿nSIOn fund 22 15 333 19 5.986 352 5.986 1521 3,076 Gains on rev8luatk)n$ of tsngible fixed a5set5 Net movement In funds 4,874 $40 2.073 7.487 4,690 ReconGiliation of funds Total funds brought forward Ttstal funds ¢arrled forward 1S,371 20,245 1.756 2,296 74863 76,936 91,990 99,477 87,300 91,990 All activities relate lo corrtinuing operations in both the above financial years. The unrestri¢led fund ¢olumn above comprises both general funds and designated funds. Details ol the analysis between these funds c8n be found iri note 20 to these financial stslements. Al 31 December 2021, general funds were £3,594k12020 - £779kl whilst designated funds (many of which represent ministry housing) amounted lo £16.7m12020- £14.5ml. Canterbury Diocesan Board of Finance Page 20 Consolidated summary income and expenditure account Year lo 31 December 2021 2021 2020 Note £'ooo £'ooo 11.717 111.46YI 12,496 111,2391 Less.. Expenditure Net income tor the year before transfers and investment galns and lossÈ$ Net gains on inveslrnents Transfers from endowtnent funds Net In¢orn8 for financlal year 1,257 130 332 20 4.501 5.081 950 2,337 The income and expenditure account is derived from the Slalement of Financial Aclivilie5 with movem8nts in endowment funds ex¢lud8d lo comply with company law. All activities relate to continuing operations. Canterbury Dio¢esan Board of Finance Page 21 Balance Sheets 31 December 2021 Group 2021 Group 2020 Charity 2021 Charity 2020 Notes £'ooo £'ooo £'ooo £'OOD Fixed assets Tangible fixed assets Investm&nls 15 16 89.730 9,020 98.750 83.469 8.150 91,619 89,730 9,021 98,751 83.489 8,151 91,620 Current assets Debtors Cash at bank and in hand 17 1,210 4,750 5.960 1.558 4,508 6,066 1.264 4,511 5,775 1,562 4,382 5.944 Creditors.. amounts falling due wthin one year Net current asset5 18 12,6441 3,316 14.3601 1,706 12,5791 3,196 14,3121 1.632 Total assets le55 current liabilit185 102,066 93.325 101.947 93.252 Creditors: amounts falling due after more than one year Net assets 19 12,5891 99,477 11.3351 91,990 12,5891 99,358 11,3351 91,917 Funds Endowment funds Restricted fund5 Unrestri¢ted funds Designated funds Gen8ral funds Non-charilable trading funds Total fund5 20 20 76,936 2,296 74.863 1.756 76.936 2,200 74.863 1.756 20 20 20 16.651 3,584 10 14,519 779 73 16.651 3,571 14,519 779 99,477 91.990 99.358 91.917 The financial ststements were approved by the Trustees on 11 June 2022 and signed on their behalf by.. Peter Wyllie Trustee Canterbury Diocesan Board of Finance Pagè 22 Con$tslidated stat•m8nt of cash flows Year to 31 Dècèmber 2021 2021 2020 Note £'ooo £'ooo Ca$h flow5 from operatiny actlvltie5 Net cash (used inl generated by operdting activities 14841 219 Cash flows from investing actlvltle$ Investment income and intere51 re￿iVed Proc&eds from tho sale of ta￿9ible fixed assets Pur¢hase of tangible fixed assets Proceeds from Sale of investments Not cash proviil*d by investment activities 239 418 223 267 16381 31 12001 50 290 Cash flows from financing activltles Repayments of borrowings Cash inflows frorn new borrowing Nèt cash provided by financlng a¢tiviti85 11.8241 2.500 676 872 872 Chang8 in ￿$h and cash equival8nis in Ihe year Cash and cash eouivalenls brought forward Cash and cash equivalents carried fo￿ard 242 1,381 3.127 4.508 4,508 4,750 A. Rèconciliation of net incomè for the year to net cash lus•d in) generated by operating activities 2021 2020 £'ooo £'ooo Net InCOm8 for the year las pei the st81ernent of financial activities) Adjustment for: Depreciation charges Gain5 on investments Investment incorne and Inte￿$t receiva￿8 Gains property disposals Pensiolls adjustment De¢rea5e I lincreasel in debtor5 (Decrease) l increase in creditors exdudlng loan5 and pensions Net cash (used in) generated by operating a¢tivlti?5 1,149 1.666 33 19011 12391 1881 12971 348 31 14231 12231 12671 14321 12361 103 {4891 14841 219 B. Analysi5 of cash and cash equivalents 2021 2020 £'ooo £'ooo Cash al bank and in hand 4,750 4,508 Canterbury Diocesan Board of Finance Page 23 Con$olidatgd statement gf cash flows Year lo 31 December 2021 Net debt Cash flows 2020 £'Doo 2021 £'ooo £'ooo Cash and cash equivalents 4.508 242 4.750 Borrowlngs Debt due within on8 year Debt due after one year 11,4401 17781 12,2181 1.087 11,7631 16761 13531 12,5411 12.8941 Total 2,290 14341 1.856 Canterbury Dio¢esan Board of Finance Page 24 Principal accounting policies Year ended 31 Decernber 2021 Basls of accourrting The principal aC￿u￿tIng Policies adopted, judgerllents and key sources of estimation uncertainly in the preparation of the financial statements are laid out below. Basis of preparation These finan¢ial stslemenis have begn prepared for the year to 31 Decèmber 2021 wth ¢omparative information provided for the year lo 31 December 2020. The financial statements have been prepared under the historical cost ¢onvenlion wÉth ileffls recognised at cost or IransactiDn value un16SS Othe￿ise stated in the relevanl a¢counling policies below or the nDtes lo Ih&se financial statements. Thè financial statements havg been prepared in accordance with A￿OuntIng and Reporting by Charities.. Statement of Recommended Practi¢e applicable lo charities preparing thèir ac¢ounls in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (Charities SORP FRS 1021. thè Financial Reporb'ng Standard applicable in the UK and Republic of Ireland IFRS 102} and the Companies Act 2006. The financial statements have been drawn up in accordance with the requirements of the Companies Act 2006 except wh8re the special nature of the Canterbury Diocesan Board of Financ8's opèrations has required adaplab'on of the formats as allowèd by s&¢lion 396{51. The charity constitutes a public benefit entity as defined by FRS 102. The financial ststsrTFenls are presented in stèrling and are rounded to the nearest thousand pounds. Ba$1$ of consolidation The financial statements consolidate the accounts of Canterbury Diocesan Board of Finance and all its subsidiary undertakings I'subsidiaries'l. The charity has taken advantage ofthe exemption Contained within section 408 oftha Companies Act 2006 not lo present ils own income and expenditurg account. Gross income of the charity of £11,507k12020 - £12,436kl and surplus of £1.102k1202fv £1,667kl has been dealt with in the acwunls of the chaTIty. Company status The charity is a company limited by guarantee. Comp8ny Registration Number 00145650 (England and Wales). Every member of Diocesan Synod is a member of CDBF for company law purposes. In the event of the charity being wound up the liability in respect of the guarantee is limited to £1 per member of the charity. The company's address and other reference intomiation is shown on page 1. Fund $tructure The unreslricled funds comprise those monies which may be used towards meeting the charitable objectives of the charity and m8y be applied at the discretion of the Trustees. Certain unrestricted funds have been set aside and designated for specific purposes by the Trustees. The restricted funds are monies raised for. and their use restricted to, a specrfic purpose. or donations subject lo donor-impDsed Conditions. Cantert)ury Diocesan Board of Finance Page 25 Principal accountlng policiès Yèar ended 31 Decemb8r 2021 Fund structur• Icontinuedl The endowmenl funds cornprise ass6ts which normally musl ba hèld as eapital bijt, where pemiitted, may be applied towards meeting certain charitable aims. The income therefrom may be used either in accordance with the donors, wishes, rf slipulaled, or for general purposes. The non-charitable Irading fLJnds represent the a￿uMUlatOd gains and losses arising on the charity's trading subsidiaries. Crrtical accounting èstimatès and areas of judgement Preparation of the financial statements requires the Trusl88s and management to make signrficanl judgements and èstimates. The items in the financial stslemenls where the58 judgements and estimates have been tnade inGlude'. the useful economic life of tangiblè ftxèd asséts for thè purpos8 of datèmiining the annual depreciation charge.. the valuation of investment property and benefi￿ properties- the underlying assumptions in the actuarial valuations of the defined benefit schemes., the recoverability of debtors and any provision for bad or doubtFtJl debts,. and the assumptions underlying the assessment of future income and expenditure flows used in the trustees, assessment of the going conGern basis of accounting {see belowl. The Trustees considervalualion of benefice properties and pensions liabilities lo be the areas ofjudgement and eslimalion that have a significant effect on the financial stalemenls. Further details of these judgements arts giv&n in notes 15 and 22 respectively. Going concern The Trustees have assessed whether the use of the going ¢oncem assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of al least one year from the date of approval of these financial statements. The Trustees, mindful of Covid-19, have concluded that there are no material uncertainties related to events 01 conditions that may cast significant doubt on the ability of the charity lo continue as a going concern. The Trustees are of the opinion Ihat the charity will have sufficient resources to meet its liabilities as they fall due. This is because the charity has sufficient investments which can be realised in the short term lo meet liabilib'es should a shorttall in income arise. In addition, the charity has designated reserves of £16.7m, including £15.2m designatèd for ministry housing. If nècèssary. somè properties could be undesignated and sold to mtstrt any ¢ash flow shortfall sh¢>uld this be necessary in tho mgdium tem 8t that lime. For these reasons the Truslè&s Continue to adopt the going con¢em b8$i$ in prèparing the financial slatém8nls and have concluded that there are no material uncertainties related lo events or conditions that may ¢asl signrficanl doubl on the abilty of the charity to continue as a going concem. Canterbury Diocesan Board of Finance Page 26 Principal accounting policies Year ended 31 Deeèmber 2021 Income Income is recognised in the period in which the charity is entitled lo receipt. the amount can be measured reliably and it is probable that the funds will be received. Income comprises donations, including Parish Share income, income from listed invastmènts, interest receivable, income directly related to charitabl& a¢livilies lincluding grants). income from trading activities, the surplus on dtsposal of tangible fixed assèts, rental and miscellaneous in¢om&. Donations are recognised when the charty has confirmation of both the amount and setdernent date. In the event ol donations pledged bLJt not received, the amount is accrued for where the receipt is considered probable. If a donation is subject lo Conditions that require a levèl of performance before the charity is entitled lo the funds. the income is deferred and not recognised until either those condttions are fully met, or the fuifilment of those conditions is wholly within the control of the Charity and il is probable that those conditions will be fulfilled in the r8POrting period. In accordan¢& ￿th the Charities SORP FRS 102 volunteer time is not recognised. Grants ffom governmonl and other agencies havè bèen incluLfed as income from activitiès in furtherance of the charity's Dbje¢tives where these amount to a contract for services, but as donations where the money is given in responsè to an appeal or with greater freedom of use, for example monies for ¢ore funding. Monies receivable from the Govemrnent's Coronavirus Job Retention Scheme are recognised when the charity has entitlement lo the incorne and the amount due to the charity can be measured. IncoTne is deferred only when the charity must ftjlfil performance related conditions befor8 becoming entidèd to il or where the donor or funder has specified that the income is lo be expended in a future accounting period. Investment in¢ome is recognised once the dividend or similar income has betrn declared and notification has been received of the amount du&. Interest on funds held on deposit is included whan receivable and the amount can be measured reliably by the charity,- this is nc>rmally upon nolffication of the interest paid or payable by the bank. Income from charrtable activities comprises parochial fees received for occasional offices including baptisms, weddings and funerals. Income from othe¥ trading activities indudes the income received from third parties by the charity's trading subsidiaries. Such income is ffleasured al the fair value of the consideration re￿iVed or receivable. excluding discounts and rebates. Gains or losses on tt)e disposal Df propety assets are calculated as th& differen¢e between the $810 proceeds net of sale costs and the net boc>k value of the asset immediately prior lo disposal. They are accounted frjr once legal completion of the disposal has taken place. Canterbury Diocesan Board of Finance Page 27 Principal accounting policios Year gnded 31 December 2021 Expenditure Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT whiGh cannot be recovered. Expenditure comprises the following.. al Expenditure on raising funds which includes expendilure associated with raising funds and Comprises the exp$nLYiture of trading subsidiary companies. bl Expenditure on charitable activities which comprises expenditure on the charity's prirTTrary charitab5e purposes as described in the Trustees, report i.e. promoting and assisting the work of the Church of England for the advancement of the Chrislian faith in the Diocese of Canlerbury. The expenditure includes both costs that can be allocated dire¢tly to su¢h activitias and those indirect costs necessary lo support them. Support costs are those costs which enable charitable activities lo be carried out. These costs include the expenses relating lo finance, human resources, communications and information technOl￿y. Where expenditurg incurred relates lo more than one activity it is apportioned using the most appropriate basis. Grants payable are includèd in the ststem8nt of financial a¢tivilies whèn approved and committed. Commitment will usually arise when the Intended recipient has either re¢eived the funds or been infom&d of the decision to make the donation. Property, plant and equipment All assets costing more than £1,000 and with 8n expected useful life exceeding onfj year are capitslised. Laptop and desktop computers costing under £1,000 aT8 also capilalised. Benefice property being buildings designed as. and used wholly or mainly for, private residential accommodation are not depreciated. Their value and conditions are reviewed annually by the Trustees, who are satisfied that their residual value is not materially less than their book value. Other fr88hold buildings which are us&d either as priv81e residential properties or as Dioc9s8n offi￿9 are not depr¢¢iat&d. The value and condition of the properties 15 reviewed annually lo ensure that their residual value is ntst materially less than their book value. Office equipment is written off over a period of three to five years, based on cost, in order to write the cost of each asset off over its estimated usefLJI life. Beneficè property CDBF has followed the requirements of FRS 102 in ils accDunting treatment for benefice houses. FRS 102 requires the accounting treatment tD follow the substance of arrangements rather than their strict legal forrn. CDBF is formally responsible for the maintenance and repair of benefice houses and has some jurisdiction over their future use or polential sale if not required as a benefice house, but in the meantime legal tide and the right lo beneficial o¢¢upalion is vested in the incumbent. Therefore, the Trustees wnsider the most suitablè accounting policy lo b$ lo capilalise su¢h properties as expendable endowment assets and to carry them 8t their estimated current value. Benefics houses are revalued on a five-year ey¢le by professional valuers or a rllember of the charity's property team wrth 8 Chartered SuNeyor qLJalifi¢alion with approximately one-fifth tsf the propertie5 being visited for valuation purposes each year. Those prop&rtl8s not revalued in the year are however revalued by reference lo appropTiate propgrty Indi￿5. Canltrrbury Diocesan Board of Finance Page 28 Princlpal accounting polici&s Year ended 31 December 2021 Invèstments Listed inveslrnents are a form of basic financial instrument and are initially recognised al their transaction value and subsequently measured al Iheirfair value as at the balance sheet dale using the closing quoted bid Pflce. Glebe property mainly consists of agricultural land and is included in the financial stslemenls al a valuation based on income yield with provision being made lor any impairment deemed necessary. The valuation is delerTnined by the Trustees after consultation with the Board's property director. Some glebe properties have development potential bul due to the uncertainties in the planning process these a￿ not rèvalued unless planning permission has been granted and a willing purchaser exists. Realised gains lor losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired after thè first day of the financial year. Unrealis&d gains and losses are cal¢ulaled as the difference between the fair value al the year end and Iheir ¢arrying value at that date. Re81ised and unrealised investment gains lor10ssesl are Combined in the statement of financial acti'vities and are credited lor debitedl in the year in which they arise. Operating leases Rentals undBr operating leases are Charged lo the statement of financial activibes on a straighl-line basis over the leasè tertn. Debtors D8btors are recognised at th8ir settlement amount. less any provision for non-recoverability. Prepayments are valusd al the amount prepaid. Cash at bank and in hand Cash al bank and in hand represents such accounts and instruments Ihal are availablo on demand or have a tTtaturty of less than three months from the date ol acquisition. Crèditors and provlslons Creditors and provisions are rocognised when ther8 is an obligation al the balance sheet date as a ￿sUIt of a past event, il is probable that a transfer of economie bènefit will be required in settlement. and the amount of the selllement ¢an be eslimaled reliably. Creditors and provisions are recognised at the amount the Charity anticipates it will pay lo setue the debt. They have been discounted to the present value of the ftjture cash payment where such discounting is material. Flnancial instruments The Charty only has financial assets and financial liabllilies of a kind that qualify as basic financial inslrumenis. Apart from fixed asset investments held at fair value, basic financial insttufflents are initially recognised al Iransaclion value and SLJbsequenlly measured at amortisad ¢osl using the effective interest method. Canterbury Diocesan Board of Finance Pagè 29 Principal accounting policies Year ended 31 December 2021 Pen5É0n5 The charity operates four pension schemes as more fvlly described in note 22.. il A dèfinad benefits scheme for clergy- the Church of England Funded P&nsions S¢hgme ill A defined benefits scheme for certain diocesan staff now closed lo new staff - the Church of England Defined Benefits Scheme IDBSI, part of the Chlirch Workers Pension Fund iiil A defined benefits scheme for diocesan staff - th& Church of England Pension Builder Classic S¢heme, part of the Church Workers Pension Fund iv) A defined contribution ponsion schgmo for dio¢esan stsff not included in the above schemes The pension costs charged as expenditure represent CDBF'S contribulions payable in fespect of the accounting period, in accordance with FRS 102. Deficit funding lor the pension schemes lo which CDBF participates is accrued at current value in creditors distinguished be￿een contributions falling due within one year and after more than one yèar. Custodlan fund$ FLJnds héld by thè charity on behalf of parishes. church schools and othèr ènlitiÉs and over which the charity has no power to make management decisions are ¢18ssified as custodian funds and are not included in the financial statements. Instead, the funds held are disclos￿ by way of a note to the financial slatemenls. School major repair and capital projects The SCA Ischotsl Condition Allocation) systÈm was introduced in April 2020 and superseded LCVAP (Locally Coordinated Voluntary-Aidèd Programmèl. Thè SCA grant funding received is reco9nised in the statement of financial activities along with the related expenditure. Cantèrbury Diocèsan Board of Finance Page 30 Notes to the financial stat&m•nts Yèar to 31 Decemb&r 2021 1. Income trom: Donations and grants Unrestricted funds 2021 2020 £'ooo £'ooo Archbishops, Council 222 665 The grants given in 2021 and 2020 are lo provide support lo the diocese durlng the Coronavirus pandemic. Unrestncled funds £'ooo Restricted funds £'ooo 2021 £'ooo 2020 £'ooo Parish Share Archbishops, Counol BenÈfact Trust Iforrnerty Alchurch8s Tru$ll Togelher Kent Isee below) Other donations and grants Total fund$ 7.584 7,584 1,394 127 126 3S6 9.587 7,529 1,379 125 1,394 127 115 242 1.900 11 92 7.687 409 9,442 As explained more fully in note 24, the other donations and grants include £126k arising from the acquisltion of Togèthèr K&nl. 2. Incom8 from= Charitable activities Un￿Stride￿ funds £'ooo Restricted funds £'ooo 2021 £'ooo 2020 £'ooo Parochial f88s for occasional i)ffice5 Isee lal below) Rental incom8 Oepartrnent for Education capital grants Is88 Ibl below) Total funds 377 439 377 439 629 1.445 297 470 667 629 629 816 1.434 {al Occasional offices include weddings and funerals. Ibl The charity assisis voluntary aided schools with school bLJilding proj&¢ls and the provision of IT equipment. SCA grant funding is included as income in the SOFA along with the related expenditure. Income from: Other trading activities Unrestri¢le(I funds 2021 2020 £'ooo £'ODO Income generated by subsKliary traijing companies Other trading income Total funds 115 ss 144 156 170 300 Income from subsidiary trading companias represents work done by Canterbury Diocesan Enterprises Limitod and Ethos School Improvement Limited for third parties outside of the group. Work done by Canterbury Diocesan Enterprises Limited for CDBF of £217k 12020- £258k I, work done by Ethos School Improvem8nl LifflileLt for Cantert)ury Diocèsan Enterprises Limited of £3k (2020 - £4kl. work done by Canterbury Diocesan Board of Finance for Ethos School Improvement Limiled of £24k12020 - £26kl and work dono for Together Kent of £7k12020-£nill has been eliminated on consolidation. Canterbury Di0￿san Board of Finance Page 31 Notes to the financial statèm•nts Yèar to 31 Dgcgmbgr 2021 Incorne from- Investments and interest Unrestricted Endowment funds funds £'ooo £'ooo 2021 £'ODO 2020 £'ooo Investment in¢offle Bank and other interest receivable Tolal fun(l$ 203 34 237 213 10 223 205 34 239 Income from.. Other sources Total fund5 2021 £'ooo Total funds 2020 £'Doo Net gains on property disptssals Proceeds frDm sale of closed schools 88 267 186 453 Total fund5 88 The gains on property disposals in 2021 relate to the disposal of a property deemed surplus to requirements less abortive development costs written off. ExpendItU￿ on- Raising funds Unrestrrcted funds 2021 2020 £'ooo £'ooo Wages and Salaries Social security wsts PensiDn costs 121 11 148 14 other Dverheads 186 163 321 330 Expenditure on raising funds comprises the expenditure of subsidiary trading companies. Canterbury Diocesan Board of Finance Page 32 Notos to the flnanclal statements Year to 31 Dgcember 2021 Analysi5 of grant fundlng activities Included within expenditure on charitable activities Inote 81 are the following grants.. 2021 2020 Numbèr £'ooo Numbgr £'ooo From unrestricted fvnd$ for National Church responsibiliti*$ Contributsons to Archbishops, Council 535 550 From restrlcted funds Education giants for school builcling project5 511 480 From unrestrl¢ted and restrrcted fund$ Minislry grants Deanery grants 32 15 818 30 31 791 22 1.894 1,843 The provision of diocesan grants, using tha Church Commissioner funding allocation, continues lo see tha dio¢ese giving financial assistance to parishès to leverage their mission. In 2021, £818k 12020 - £791 kl was spent in targeting parishes which can most benefit from grant funding for mission and ministy. Canterbury Diocesan Board of Finance Page 33 Notes to the financial statements Year to 31 December 2021 Expenditure on: Charitable activities Total fund6 2021 £'ooo Total funds 2020 £'ooo Unrestri¢led funds £'DOO Restiieted Endowm8nt funds funds £'ooo £'ooo Contribution5 to Archbishops. Council- Trainlng for ministry National church responsibilities Grants and provi510n5 Mission agency pension COSt5 Retired clergy housing c0515 Pooling of ordinands. main18n8nc8 grant5 235 164 20 11 87 18 235 164 20 11 87 18 235 177 20 85 24 535 535 550 Re$our¢ing Ministry and Mission- Parish Minlsty Stipends National Insurance Pension contributions Hou51ng Costs Apprenticeship levy Rernova5 and resettlement costs Other expenses L8y and ordinand training Mission dgvdopment grants 3,133 250 954 1.218 Is 160 42 129 30 3,133 250 954 1,218 15 160 172 267 848 3,046 242 14 204 177 347 813 120 138 818 10 5.931 1,076 10 7,017 6,778 Senlor Clergy Stipends. Nl and Pensions Housing cost allocation 58 32 58 57 32 29 90 90 86 Strategi¢ Inveslmertt Pmje¢ts (see below) 49 411 460 600 Support costs (note gi 2,091 97 2,188 2,110 Total expenditure on resourcing Ministry and Mission 8,161 1,584 10 9,755 9,574 Expenditure on education- Support lor church schools and young people School building grants (see note 21 357 24 381 511 340 480 511 Totsl fund$ 9.053 2,095 34 11,182 10,944 The 2020 expenditure is analysed by fund in the appendix. Restricted expenditure on Strategic Investment Projects compris8s expenditure on projects to enable the Diocesan Strategy of 'Changed Lives Changing Lives,. Canterbury Diocesan Board of Finance Page 34 Notes to th• financial Statements Year to 31 D&cember 2021 Analysis of support costs Total funds 2021 £'ooo Total funds 2020 £'ooo Unrestrieled funds £'ooo Restri¢led funds £'ooo Adwini5tratlon Salaries National In5uranc8 Pen5ion5 Administrstion. Offi￿ and other indirect Costs 1.214 115 219 404 1.214 115 219 501 1,260 122 218 380 97 Governance Ext8mal audft Diocesan Synod and Archbishop's Council National Synod Regi51rar Statutory accounts p￿paratIO strategic m8nag8ment Total support costs 40 68 10 15 2.091 68 10 1$ 2,188 57 10 15 2,110 97 In both 2020 and 2021. support costs relate only to the resourcing of Ministy and Mission. Rostricted administration expenditure includes £97k12020 £nill In ￿SpeCt of Together Kent. 10. Analysls of total expenditure Activitie$ Grant directly fundlng of undertaken actlvitie$ £'ooo 2021 Total funds £'ooo 2020 Support ¢05ts £'ooo Total funds £'ooo £'ooo Raislng fund5 Charitable activitl8S Contributions to A￿hb[SI￿pS, Council Resourcing Ministry and Mission Education 321 321 330 535 848 511 535 9.755 892 550 9.574 820 11,274 8.719 381 2,1BB 7,421 1.894 2,188 11,503 The 2020 expenditure is analysed by activity in the appendix. 11. Net Income lexpenditurel for the year This is staled after charging.. 2021 £'ooo 2020 £'ooo Depr8ciation of langlble fixed assets owned by the charilable group Operating lease rentals 33 20 31 23 Cantèrbury Diocesan Board of Financ& Page 35 Notes to the flnancial statement$ Year to 31 December 2021 12. Auditor's remuneration 2021 £'ooo 2020 £'ooo Audit of the charity's annual accounts and those of subsKliary trading compan5es.' Current year Prior years Taxation services to the group 30 11 10 13. Stipends and staff costs 2021 £'ooo 2020 £'ooo Wages. salaries and stipends Sou81 security costs Other pensDn costs 4,975 421 1,261 6,657 5.069 430 1,102 6,601 Defined benofit schem8 0￿r￿ling c05t Apprenlice$hlp levy 15 6,680 14 6,621 The average number of persons employed by th& group during the year was as follows= 2021 No. 2020 Clergy, Curates and Sellior Staff Dioce5ar) House (including strategic projecisl Subsidiary trddsng compani8S 129 61 128 69 193 202 The number of employees with remuneration in excess of £60.000 (including taxable benefits butexcluding employer pension and national insurance ¢onlribulionsl was.. 2021 2020 No. In the band £60.001 _ £70.000 In the band £80,001- £90,000 Employer pension scheme costs under employment contracts in respect of the above higher paid employees were £28,684 {2020- £49,106). Canterbury Diocesan Board of Finance Page 36 Notes to the financial statements Year to 3fj Dec8mb8r 2021 13. StSpend$ and staff costs {continuedl Remuneratlon of key managementpersonnel Key management personnel are deemed lo be the Trustees and those having authority and responsibility, delegated lo them by the TrLJSt89s, for planning, directing and controlling tho activities of the diocesè. During 2021 arid 2020 the key management personnel were Ihe Trustees and the following.. Dioctrsan Secretary and Company Secretsry Director of Communications Director of Communities and Partnerships Director of Education Director of Finance Director ol HR Director of Mission and Ministry Director of Ordinands Director of Property Remuneration including taxable benefits and employer riational insurance and pension contsibulions for these 9 positions amounted to £541,07812020 - £596,394). 14. Trustees, remuneration No Trustees received any remuneration in connection with their duties as trustees during the year12020- nonè). During the year several Trustees, who are also clergy within the diocese, received stipends from, andlor were provided with housing by, the charity in connection wrth their religious and pastoral duties within the diocese. The following table gives detsils of the Trustees who were in receipt of a stipend (including pension). part stipend (including pension) andlor housing prDvided by CDBF during part or all of the year, either directly or via a spouse. Stipend Housing The Bishop of Dover Mr Nigel Mansley The Ar¢hdeacon of Ashford The Archd8acon of Canterbury The Archdeacon ol Maidslone The Venerable Stephen Taylor, M8E The R8vd Estella Last The Revd Canon Stephen Lllicrap The Revd Shiela Porter The Revd Carol Smrth Yes Y88 Yes Yes Ye5 Y88 Yes Yès Yes Y65 Yes Yes Yes Yes Yes Yes Yes 7 truslees12020- 6) received reimbursement of expenses of £6,82012020- £13,718) in respect of General Synod duties. duties as archdeacon and olh8r duties as Iruslees. Canterbury Diocesan Board of Finance Page 37 Notes to the financial statements Year to 31 December 2021 15. Tangible fixed assets FrÈÈhold Offlce propety equlpment Benefice Group and charfty property Totsl £'ooo £'ooo £'ooo £'ooo Cost or valuatlon Al 1 January 2021 Additions Transfers Inole 201 Disposals Revaluabon 16.768 634 432 67,584 84,784 638 4501 13501 14,5011 13501 5,986 5,986 At 31 De¢ember 2021 21.553 436 69,069 91.058 Depreciation At 1 January 2021 Charge for the year Disposals Al 31 Decembpi 2021 957 358 33 1,315 33 1191 938 390 1.328 Net book values At 31 Decernber 2021 20.614 15,811 46 69,070 67,584 89,730 83,469 At 31 December 2020 74 Benefice houses arè r8valued on a fivé-yèar cyclè by profèssional valuers or a member of the charity's property team with a Chartered Surveyor qualificalion with approximately one-fifth of the properties being visiled for valuation purposes each year. Those properties not revalued in the year are however revalued by reference lo appropriate property indices. All other tangible fixed assets are included in the financial ststemenls at cost. 16. Fixed asset investments Glebe property £'ooo Listed investmont5 Total £'ooo Group £'ooo Market value At 1 January 2021 Disposal proceeds Net investment gains At 31 Dec8mb8r 2021 1,793 6,3S7 1311 901 7,227 8,150 1311 901 9.020 1.793 Hl$tor6¢al ¢o$t 3.826 3.826 In 1978, when the Endowment and Glebe Measure 1976 came into effect, the ownership of all glebe land was transferred from the incumbents of benefices lo the Diocesan Board of Finance at nil cost. Canterbury Diocesan Board of Finance Page 38 Notes to the financial statem&nt$ Year lo 31 December 2021 16. Fixed asset inv•stmÈnts Iconlinuedl Investment in subsidiaries £'ooo Glebe property £'ooo Listed investments £'ooo Total £'Doo Charity Cost or valuation Al 1 January 2021 Disposals Net inv85trn8nl gains At 31 December 2021 1,793 127 6.357 1311 901 7,227 8,277 1311 901 9.147 1,793 127 ImpaimiÈnt At 1 January 2021 and 31 Decembèr 2021 126 126 Net book values At 31 D8cember 2021 At 31 December 2020 1.793 1.793 7.227 6,357 9,021 8.151 I the fixed asstrt investments are held in the UK. The listed investments are held in Church of England Central Board of Finance funds managed by CCLA Investment Management Limited. Furthèr details of subsidiaries ara provided in note 24. Al 31 December 2021, the listed investments included the following holdings deemed mater181 in the nlext of th8 èntire portfolio of listed investmgnls. Value £'ooo /0 of portfolio Holdin Property fund Investtn8nt fund 1.501 5.695 20.8% 78.8% 17. Dèbtors Group 2021 £'ooo Charlty 2021 £'ooo 2020 £'DOO 2020 £'ooo Parish Share due Amounts owed by subsidi?ri88 Other debtors.. 167 251 167 76 251 26 Secure¢ loan Other debtors Prepayments Accrued income 216 432 317 342 1.558 216 419 308 342 434 267 342 415 264 342 1,210 1,264 1,562 Canterbury Dio¢esan Board of Finance Pagè 39 Notes to the flnanclal statèmènts Year to 31 Do¢embgr 2021 17. Debtors Icontinuedl Parish Sharg (the group and the ¢harlty) The parish Sha￿ element wlthin debtors above consists of.. 2021 2020 £'ooo £'ooo Total parish share due at 31 0e¢ember 4,040 3,434 Provisions made in resp&ct of.. CurrEnt year p￿vIouS years Total 11.0191 12.8S41 167 11.1351 12.0481 251 18. Crèdltors: amounts falling dtje within one year Group 2021 Charity 2021 2020 2020 £'ooo £'ooo £'ooo £'ODO Bank loan Chur¢h Commissioners. loan Other loans Expense creditor5 other laxalion and sooal security othei creditors Pension scheme liabilities Accruals and d8ferr8d incom8 208 423 872 145 303 48 1,928 432 209 208 423 872 145 308 48 1,924 432 160 145 154 46 1.643 291 157 145 141 45 1,643 291 106 2,644 4.360 2.579 4,312 The bank 108n of £1.971k is secured over freehold properties and is repayable in monthly capital inslalments of £41.667 commencing 29 August 2022. The bank1oan is provided under the UK Govèmment ba¢ked Coronavirus Business Interruption Loan Scheme with inlerestforthe first twelve months being paid by the UK Government direct lo the lender. After twelve months the interest ratè will be eith8r 1.68% over basè raté or 1.720/0 over the ￿5t of funds. the rllargin ¢hosèn baing at the discrelion of Canterbury Dio¢esan Board of Finance. A further £1.314k of the bank loan has been repaid since the year end following the sale of freehold properties no longer required for Thinislry purposes. The Church Commi5sioner5' loan related lo an advance lo ¢over threg month's stipends for August. Seplamber and October 2020. 11 was interest free and was repaid in 2021. Other loans comprise Value Linked Loans of£145,00012020- £145,000) forlhe purchase ofspecial needs housing Ipurch8sed on behalf of the Church Comrnissionersl. These loans are only ￿paYable in the event of a sale of any of the properties and interest is charged on these loans al a variable rate. Canterbury Diocesan Board of Finance Page 40 Notes to the financial statèments Year to 31 Dè¢èmber 2021 19. Creditors.. amounts falling due after more than one yèar Group 2021 ¢harÉty 2021 £'ooo 2020 £'ooo 2020 £'ooo £'ooo Bank loan Ise& note 181 Other loans Pension schetne Ik%bilities 1,763 778 48 2,589 1.763 778 778 778 556 556 1,335 2,589 1,335 Creditors include amounts not wholly repayable within 5 years as follows.. Group 2021 Charlty 2021 2020 2020 £'ooo £'ooo £'ooo £'ooo Repayable oth8r than by instalments 826 1,335 826 1,335 The other loans Consist of three 12020 - three) interest only mortgages which are s$cured on freehold properties. All the loans are repayable within 20 years. Inltrrest Dn the loans is chargtrd at 1.50Yo abovè base rate. Cantarbury Diocesan Board of Finance Page41 Not•s to thè flnan¢ial statements Year lo 31 December 2021 20. Statèmgnt of funds Carrled fotward at 31 December Brought forward al 1 January TranslÈrs In Gains Ilossesl £'ooo 2021 £'(oo Incotne Expenditure 2021 £'ooo £'ooo £'ooo £'ooo Endowmtnt funds Mlnislry Trust Fund Cl&rgy Training Fund Tail Mission Fund 2.DB2 575 218 67,850 1JS0 2,788 74.B63 298 2.380 659 247 69,354 1,413 2,883 76.936 B4 29 8enÈficÈ Properties Fund 8oard of Educ81ion Gener81 Fund Stipends C8Prtal Fund 14,5011 6,005 53 105 1241 1101 1341 14.5011 6,574 R8strlcted fvnds Clergy an(1 Spouse5 Retirement Fund B&nef2ct IfDrm&dy Allchurches Trust) Lower Income Communities Fund Resourcing Ministerial Education Slralegic Investrnènt Projects School Buildings Fund Ise& note 21 Education Funds Other Funds Diocèsan Pa8toTrl A¢¢ouni Fund 750 16 106 854 129 127 818 219 357 629 1141 18181 11381 13971 15111 81 187 305 178 269 379 12091 439 316 310 1.756 2.529 12,0951 106 2.296 Do5ignat8d funds Ministry Housing Spirilu81ity Fund Witney Fund Training Fund 13,187 254 1.971 15,158 258 1321 29 146 1,055 23 32 1.212 23 14.519 39 531 1.971 175 16.651 General funds G&ner81 779 9.034 9,073 19.1431 19.1961 2,530 4.501 3B4 3.584 20.235 Totdl unrestricted funds 15.298 559 Total Ch8rlty funds Ilncludlng Together Kenti Non-charilable trading funds Totsl Group fitnds 91,917 73 11.636 1t5 111.3251 11781 111,5031 7.239 99.467 10 91,990 11,751 7,239 99.477 Canterbury Diocesan Board of Finance Page 42 Notes to the financial statements Yèar to 31 December 2021 20. Statement of funds Icontinuedl Cairied forward at Brought forward at 1 January Summary: Group funds 2021 31 Tra05fvrs In lout) £'ooo December 2021 £'DOO 2021 £'ooo Income Expenditure £'ooo £'ooo Gain8 £'ooo D&signated funds General funds land non- charitable trtding fund81 Unr8stricted funds Endowment funds Restfic18d fund5 Total lunds 14.519 39 1531 1.971 175 16.651 852 9,149 9,188 34 19,3211 19,3741 1341 12,0951 111.5031 2,530 4,501 14.5011 3.584 20.245 76.936 2,296 99,477 15.371 74,863 1,756 91.990 559 6.574 106 2.529 11.751 7,239 Designated Funds il Ministy Housing - This fund Consists of Ministry Housing properties. ill Spirituality Fund The fund represents the sale proceeds of St Gabriel's Retreat House for financing a part time Diocesan Spirituality Advisar and making grants to assist Parishes and individuals to takg retreats. iiil Wilney Fund - This ftjnd consists of a legacy from the Eslale of the Late Dr Raymond Witney. The Board rèsolved that the capital of the fund should be retainod intact and the income be used to assist in the promotion of the Christian faith in the diocese. Iv) Training Fund The purpose of this fund is to provide grants to clergy lo supplement their training needs as appropriate. This fund receives unusèd Continuing Ministerial Education ¢onlribulions and the income arising from the Cobbe Holiday Trust Fund Iwilh the approval of the Charity Commission). General Funds General funds wnsist of the accumulated surpluses, less defieits. on unreslricled funds, excluding designated fund movernenls. Non.charitable trading lunds These funds consist of the unrestri¢led funds of the trading subsidiaries. Endowment Funds Permanent Endowm8111 Funds The endowment funds, whereby the capital may not be expended and the income may be applied as specified are as follows.. il Ministry Trust Fund - Income to be applied for stipends. The fund cornprises the Standen Bequest, the Spooner Bequest, the A T Wiggins Bequest. the Parsonage Repair Fund. and the Dame Stancombe- Wills Fund. ill Clèrgy Training Fund Income to be applied for clergy training. The fund Comprises the Candidates for the Ministry Fund, the Holt Fund and the Knight Trust Fund. iiil Tail Mission Funil - Income to be applied for the expenses of the Tait Missioner. Canterfoury Dio¢e5an Board of Finance Page 43 Notes to tha flnanclal statèmènts Year to 31 December 2021 20. Statement of fund$ l¢ontinuedl Expendable Endowment Funds il Benefice Properties Fund- Thg fund consists of resources restricted lo provision of bonefice houses which are vested for the time being in the incumbents of the benefices concemed. The CDBF is obliged to maintsin them and lo ensure that there are sufficient b&n&fi¢e hous&$ for the pastoral Structu￿ of the dioGe5e. Sale proceeds of benefice houses surplus lo requirernents may be transferred into the diooesan pastoral account fund or other funds following specific agreement of the Chvr¢h Commissioners. During the year £4,501.000 12020 - £950,000) was transferred from the Benefice Properties Fund lo the Ministry Housing Fund following schemes approved by the Church Commissioners. ill Board of Education General Fund The proceeds of sale of redundant properties are held on a separate endowment fund under s554 ofthe Education Act. The capital offunds awaiting Orders from the S&¢retsry of Stale are not available for use until such lime as they are included in a Charitable ordèr or sehem8 which Fnay require funds to be disposed of to other parties In part or full. Othe¥ proceeds of sale of redundant properties are held until the completion of replacement schools. In these cas85 the proceeds of sale may be used lo offset expenses relating lo the new school projects. iiil Stipends Capital Fund - The fund is govemed by $35 of the Endowments and Glebe Measure 1976. Income is derived primarily from the retum on investments, the sale c>f glebe. gains on sale of inveslmenls, the transfer of parsonage proceeds and occasional gifts and bequests. Income of the fund is automatically applied to stipends but, al the request of the Bishop, and with the concurrence of the Board, can be applied to.. acquiring new glebe land., developing, improving and protecting amenities of glebe., discharging loans on glebe., the improvement or r8pair of parsonage houses 01 ministry housing. Restricted Funds Reslricled funds comprise of.. il Clergy and Spouses Retirement Fund The following restricted funds specrfy that both Capital and income musl be applied for retired clergy and spouses.. C S Thomas Mrs A W Mannell Bequest R&MPratt Dorothy Mowll Will Trust ill Benefa¢l (formerly Allchurches Trus11- These funds, which are intended to be recurring, musl be used for projects of regional or national significance and may be spread over up to three years. iiil Lower Income Communities Fund- The fund consists of income frorn Archbishops. Council lo make provision for the cure of souls in parishes where such assistance is most required. tv) Rèsourcing Ministerial Education- The fund consists of income from Archbishops, Council lo support ordinand training. Canlerbury Diocesan Board of Finance Page 44 Notss to the financial stat•mgnts Year to 31 December 2021 20. Statement of fvnds Iconlinuedl Restrleted Funds (continu&d) vl Strategic Investment Projects - The fund consists of funding for projects lo enable the Diocesan Strategy of'Chang&d Lives-kChan9ing' Livès. vil School Buildings Fund This fund consists of ftjnding received from the DE under the School Condition Allocation (see note 2). vil} Education Funds - This fund consists of monies from the sale of a closed school. These funds are likely to be subject lo an order under s554 of the Education Act and will then be tranSf&r￿d lo the Board of Education expendable endowment fund. viiil Other Funds- These funds con51St of various funds for projects other than the Di0¢¢s8n Strategy. ix) DiDc&san Pastoral Account Fund The purposes for whi¢h this fund may be used are laid down in S&¢tion 94 of the Pasioral Measure 2011 and comprise". grants and loans for parsonage and church provision. rastoration, improvement or repair., costs of disposing of or maintaining houses and ¢hurches vested in the Board or Commissioners by the Measure,. transfers lo Stipends Capital Fund of capital or income., other purposes of the Diocese or any beneficè or parish. The fund receives the sale procèeds of churches and parsonages, which have become redundant under pastor81 reorganisation when it is specified that they should be paid into this fund. The fund includes monies Sel aside by the Pastoral Committee for mission and development in parishes. Thè analysis of the movements in funds for 2020 is included in the appendix. 21. Analys1$ of net assets betw•¢n fund5 An analysis of the group net assets between funds at 31 Docember 2021 is given below: Total fund5 2021 £'ooo General Designated funds funds f'ooo £'ooo Restricted Endowment fvnds funds £'ooo £'ooo Group 2021 Tangible fix8d assets Fixed as$el investrnents Current assets Creditors due within one year Creditors due in more than one year Tot81 funds 5,191 403 1.682 11,0931 12,5891 3,594 15,469 1,770 412 11.0001 69,070 5.905 1,961 89,730 9,020 5,960 12,6441 12,5891 99,477 942 1,90S 15511 16.651 2,296 76,936 General funds inclLJda non-¢haritable trading funds of £10k {2020- £73kl. The 2020 analysis of nel assets by fund is included in the appendix. Canterbury Diocesan Board of Finance Page 45 Notes to the financial stat•m8nt$ Ygar lo 31 Decsmber 2021 22. Pension commitment$ Clergy Canterbury DBF participatès in thè Chur¢h of England Fundèd Pénsions Schèm8 for stipendiary ¢lergy, a defined benefit pensiDn scheme. This s¢heme is administered by the Church of England Pensions Boafd, which holds the assets of the scheme separately from those of the Responsible Bodiès. Each participating Responsible Body in the s¢h&me pays contributions al a Common Contribution rate applied to pensionable stipends. The scheme is consid8r&d to bè a multi-employér s¢heme as described in Sèction 28 of FRS 102. This means il is not possible lo atlribul& the scheme's assets and liabilities lo each specifi¢ Rèsponsible Body and this means that ¢ontributions are accounted for as if the schetne weie a defined contribution scheme. The pensions costs charged to the slatetnenl of financial activities in the year are Gontributions payable towards benefits and exp&n$es accrued in that year, plus any impact of deficit contributions lsee below). A valuation of the scheme is carried out once every three years. The most recent scheme valuation completed was Ca￿led out at as 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1.818m and a funding target of £1.868m, assessed using the following assumptions.. An average discount rale of 3.2Dlo pa., RPI inflation of 3.4Vo pa land pension increases consistent with this)", Increase in pensionable stipends of 3.4°k pa,. Mortality in accordance with 950/0 ofthe S3NA_VL tables, with allowance for improvements in mortality rates in line with th8 CMI 2018 extended modgl with a long-lerm annual rate of improvèment of 1.50A. smoothing parameter of 7 and an initial addition lo mortality impr()vements of 0.50/0 pa. Following th& 31 Dece¥nber 2018 valuation, a recovery plan was pul in place until 31 December 2022 and the dèficit contributions las a percentage of pensionable stipends) are as sel out in the table below. January 2019 to January 2021 to December 2020 December 2022 % of pensionable stipends Defi¢it ¢ontributitsns 11.9% 7.1Vo As at 31 December 2019, 31 December 2020 and 31 DecemL>er 2021 the dtrficil recovery Contributions under the re¢overy plan in force were as set out in the above tsble. For s$nior offi¢e holders, pensionable slipend5 are adjusted in the calculations by a mu￿1p[e, as Sel out in the scheTTTre's rules. Canterbury Diocesan Board of Finance Page 46 Notes to the financial statements Year lo 31 December 2021 22. Pension commltmerrts Iconlinuedl Clgrgy (Gontinu&d) Se¢tion 28.11A of FRS 102 requires agreed deficit recovery payments to be recognis8d as a liability. The movement in the provision is sel out in the table below. 2021 £'ooo 2020 £'ooo Balance sheet liability at 1 January Deficit contribution pal Interest cost Irecognised in slalemenl of financial aebvitiesl Remaining change to the balance Sheet liability. Irecognised In sta18ment of financial 458 12231 791 13571 1201 216 17 458 Balan¢e sheet liabillty at 31 December ' Compnses change in agreed deficit recovery plan and change in di8¢￿ftt rate arKI assumptions between year-ends. This liability represents the present value of th& d8ficil recovery contributions agreed as al the accounting dale and has been valued using the following assumptions. In general. these are set by reference to the duration of the deficit recovery payments, but as al 31 December 2021, under accounting rules th8 payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known. Dec8mb8r 2021 Decernber 2020 D8¢ember 2019 Discount ratè o.oo/. nla It.5%1 0.20/0 3.10/0 1.6V 1.1% pa 2.8Yo pa 1.3YD pa Price infiation Increase to total pensionable payroll The legal structure of th& scheme is such that if another Responsible Body fails. Canterbury DBF could bewme responsible for paying a share of the Responsible Body's pension liabilities Staff Canterbury DBF participates in the Defined Benèfits Scheme and the Pension Builder Scheme of the Chur¢h Workers Pension Fund for lay staff. The scheme is administered by the Church of England Pensions Board. which holds the assets of the scheme separately from those of the Employer and th8 olh&r participating gmployers. CWPF has sections.. the D&fined Benefits Schème the Pension Builder Scheme. which has two subseclion8- a deferred annuity sectlon known as Pension Builder Classi¢. and, a cash balance section known as Pension Builder 2014. Defined Benefits Scheme The Defined Benefits Scheme I'DBS'I section of tho Church Workers Pension Fund provides benefits for lay stsff based on final pensionable salaries. Canterbury Diocesan Board of Finance Page 47 Not•s to thè financial $tatements Year lo 31 December 2021 22. Penslon commltments l¢onlinuedl Staff (continued) Defined Benefits Scheme (continued) For funding purposes, the DBS is 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 exisis to share certain risks between employers, including thosè relating lo mortality and posl-retirement investment retums. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not allèr the fa¢t that the assets of thè DBS are held as a single Irusl fund out of which all th& bgnefi'ls are lo be provided. From lime lo tim&, a notional premium is Iransferred from employers, sui>pools to the Life Risk Pool and 811 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 specific employers, since each employer, through the Life Risk Pool, is exposed lo actuarial risks associated with the current and former employees of other entities participating in the DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool. further transfers may be madè from the Life Risk Pool to thè employers, sub- poc>ls, or vice versa. The amounts to be transferred land their allocation bebNèèn the sub-poolsl will be settled by the Church of England Pensions Board on the advice of the ActLJary. A valuation of the t)BS is carried out once every three years. The most recent Valuation was carried out as at 31 December 2019. In this valuation, the Life Risk Section was shown to bè in deficit by £7.7m and £7.7m was notionally transferred from the employers, Su￿poolS to the Life Risk Pool. This increased the Employer contributions that would othenNise have been payable. The overall deficit in the DBS was £11.3m. Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund lo pay a contribution rale of 46.1°/o of pensionable salary and expenses of £6,700 pfyr year. In addition. deficit payments of £74,552 per year have been agreed for 2.5 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool. This Dbligalion has been recogni5ed as 8 liability within these rinancial statements. Section 28.11A of FRS 102 requires agreed deficit recovery payments lo be recognised as a liability. The movement in the provision is sel out below.. 2021 £'ooo 2020 £'ooo Balance sheet liability at 1 January Deficit contributions paid Interest cD$t 1￿Co9￿18@d in statement ol finanoal a¢tiviliesl Retnaining change io the balance Sheet liability" Irecognised in statement of financial 530 1751 577 1751 13351 122 20 530 Balance sheet liability at 31 De¢*mber ¢ompri5e5 ch9nge n 8greed deficit recovery pbn and charye in di5¢0unl rale arKI assUmpticm￿ belween year-ends. Canterbury Diocesan Board of Finance Page 48 Notès to the financlal stat8mÈnts Year to 31 December 2021 22. Pension commitmènts Iconlinuedl Staff (¢onlinued) Defined 8enefils Scheme (continued) This liability represents the present value of the deficit recovery ¢onlributions agreed as al the accounting date and has been valued using the following assumptions, sel by reference to the duration of the deficit re¢overy payments.. December 2021 December 2020 Decémber 2019 Discount rale 1.30% 0.50¥. 1.40% The legal structure of the schèmé is such that if another employtrr fails, the ernployer could become responsib19 for paying a share of that employer's pension liabilitias. Pension Bulldèr S¢heme Both sections of the Pension Builder Scheme ar8 classed as defined bènefit s¢h&mes. Pension Builder ClassiG provides a pension. accumulated from ¢ontribulions paid and converted into a deferred annuity during employment based on terms sel and reviewed by the Church of England Pensions Board from time lo lime. Discretionary increases may also be added, depénding on investment returns an(J other factors. Pension BullderZO14 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 retirèment, depending on investment rtrtums and other factors. The account, plus any bonuses declared is payable, unreduced. from age 65. There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered lo be a multiomployér scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities lo specific employers and mèans that contributions are a¢counled for as rf the Scheme were a defined contribution s¢heme. The pensions costs charged to the SOFA in the year are the contributions payable12021.' £42,539 {2020.- £nill. A valuation of the Pension Builder Scheme is carrièd out On￿ every three years. Th8 most re¢enl valuation was Ca￿led out as at 31 December 2D19. The next valuation is due as at 31 Dgcember 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3010 following improvements in the funding position over 2021. There is no requirement for deficit paymenis at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. Therg is no requirement for dafieil p3ym8nts at the current time. The legal structure of the ￿heme is such that rf another employer fails. the employer could become responsible for paying 8 share of the failed employ8r's pension liabililies. Canterbury Diocesan Board of Finance Page 49 Notes to the financial statements Year lo 31 December 2021 23. Operating lease commitments Al 31 December 2021 the total of the group's and charity's future minimum lease payments under non- cancellable operating leases was.. Land and buildings Equipment £'ooo £'ooo Land and buildings £'ooo 2021 £'ooo Equipment £'ooo 2020 £'ooo Group and Charity Amounts payable: Within 1 year Belween 2 and S years Over 5 years Tc+tal 15 21 24 15 20 22 48 20 28 19 27 35 38 73 24. Principal subsidiaries, joint ventures and connected charities a. Principal subsidiarles Details of the principal SLJbsidiaries are provided below.. Registration number Pèrcèntage Sharaholding Principal Activity 1000/0 Property management Company namè Canterbury Di0¢8$8n Enterprises Limited Country England & Wales 6673588 Diocesan Architectural 2790278 ServF¢os Limited England & Wale5 100% Architectural services Domiant from May 2018 Ethos School Improvement Limited 7945168 England & Walès 100% Provision of services to schools Togather Kent Limited 8763875 England & Wales 100% Building partnerships to work with marginalised communities Finan¢i81 information for each of the subsidiaries is as follows.. 2021 £'ooo 2020 £'ooo Diocesan Architectural Services Limited Assets and funds 2021 £'ooo 2020 £'ooo Canterbury Dlo¢e$an Enterprises Limite Income Expendlture Loss 252 13131 1611 12 1481 1361 326 13291 A5sels 49 1241 25 Funds Canterbury Diocesan Board of Finance Page 50 Notes to the financial $tatements Year to 31 December 2021 24. Principal 5ub5idiaries, joint ventur•$ and connected charities Icontinuèdl 2021 £'ooo 2020 £'ooo Ethtss School ImprovemÈnt Limited Income Expenditurg Profit Assets 83 1861 81 1791 131 1851 119 1701 49 Funds 2021 £'ooo 2020 £'ooo Together Kent Incom8 Expenditure Profil Assets 89 11061 1171 116 171 109 132 1371 95 131 151 126 Fund$ With effect from 1 Mar¢h 2021 Together Kent becamè a wholly owned charitable subsidiary. Thère wa5 no cost of acquisition and the reserves acquired of £126k are Irealed as other donations and grants (see note 1 to the accounts). The donations consisted of £11 k of unreslricled reserves and £11 Sk of restricted reserves. The 2020 comparative figures are reported above only for comparative purposes and do not form part of the 2020 consolidated results. b. Principaljolnt ventures With effect from 1 Mar¢h 2021, Together Kent beGame a wholly owned subsidiary. c. ConneGted entities Company name The Diocese of Canterbury Academies Company Limited 7793458 Registration numbèr Country Principal Actlvlty England & Wales Educational activities 25. Custodian Trustee The charity acts as Custodian Trustee in respect of various funds. These assets are held separately from those of the charity and are not induded in the balance sheets on page 22. The summary of the funds as at 31 December is as follows.. 2021 £'ooo 2020 £'DOO Tru$t funds Represented by.. Fixed assets Listed investments lat costl 1.772 1,782 Current assets Central Board of Finance Dèposil Fund Cash at bank Total 1,382 1,321 3,154 3,106 MarfKèt value of inve8tmet)t$ at 31 December Listed investments 6,335 5,629 Canterbury Diocesan Board of Finan Page 51 Notes to the financial stat*ments Year lo 31 December 2021 26. Related party transactions Other than the relalionships and transactions disclosed in note 14. there are no other related party transactions requiring disclosu￿(2020 - none). Canterbury Diocesan Board of Finance Page 52 App•ndix.' Comparative consolidated statèment of financial activities Year to 31 December 2020 Total fund$ 2020 £'ooo Unrestricted Restrlcted Endowment funds funds funds £'ooo £'ooo £'ooo Ntstps Income and endowments from: Donations and grants.. Archbishops, Council Other donations and grants Charitable activities Other trading actiwties Investrnenls 8nd interest Other source5 Total iwrcome and endowments 665 7,664 767 300 210 267 9,873 665 9,442 1.434 300 223 453 12.517 1,778 13 178 2.623 21 Expenditure on: Raising funds Charitable activities Totsl expendltu 330 8,847 9,177 330 10,944 11.274 2,082 2.082 35 35 10 Net In￿rne lexpendlturel before investrnent 901ns Net gains on investments 696 85 561 45 1141 293 1.243 423 16 Net income before transfe Transfers betsveen funds 781 950 606 279 19501 1,666 20 Nèt lrt¢orne lexpendlturel forthe year 1,731 606 le711 1,666 Other recognised gains and lo$$e$- (Losses) gains on revaluation of pension fund 22 15 1281 1241 3.076 1521 3.076 Gains on revaluations of tsngible fixed assets Net movement In fund$ 1,703 606 2.381 4,690 Reconciliatlon of fund5 Total funds brought forward Total funds carrted forward 13,668 15,371 1.150 1,756 72,482 74,863 87.300 91,990 Canterbury DI0￿$an Board of Finance Page 53 Appendix.. Comparativ8 not8s to tha financlal statements Year to 31 December 2020 1. Income from- Other donations and grants Unr8slricted funds £'ooo Restricted fund5 £'ooo 2020 £'ooo Parish Share Archbishops. Council Allchurches Trust Other donations and grants Total funds 7.529 7,529 1.379 125 409 9.442 1.379 125 274 1,778 135 7.664 2. Incomè from: Charitable aetivitlOS Unrestricted fund5 £'ooo Restricted funds £'ooo 2020 £'ooo Parochial fees for o¢¢asional offices Department for Education capital grants Rental incorne Total funds 297 297 667 470 1,434 667 470 767 667 4. Income from: Invastments and Intarost Unrestricted Endowment fund5 funds £'ooo £'ooo 2020 £'ooo Inveslrnenl In¢ome Bank and other Inte￿$1 receivable Total funds 200 10 13 213 10 223 210 13 5. Income from: Other sources Unrestricted funds £'ooo Restricted Endowment Total funds funds 2020 £'OOD £'DOO £'ooo Gains on proparty disposals Proceeds from sale of closed schools 267 267 178 178 186 453 Total funds 267 Canterbury Diocesan Board of Finance Page 54 Appgndix: Comparative notes to thè financial ststements Year to 31 Dèc@mb8r 2020 B. Expenditure on: Charitable activities Total fvnds 2020 £'ooo Unrestricted funds £'ooo Restricted EndDwment funds funds £'DOO £'ooo Contributlon$ to Archbishops, Coun¢ll.. Training for ministry National church responsibilities Grants and provisions Mission agency pension costs Retired clergy housing costs Pooling of ordinands. main18nan¢e grants 235 177 20 235 177 20 85 24 85 24 550 550 Resourcing Ministry and Mission= Parfsh Ministy Siipends National Insurance Pension contributions Housing ¢osts Apprenticeship levy Removal and resetuement Costs Other expenses Lay and ordinand training Mission development grants 3,046 242 784 1,151 14 204 124 138 22 3.046 242 1.151 14 204 177 347 18 209 791 35 813 5.725 1,018 35 6.778 Senior Clergy Stipends. Nl and Pensions Housing cost allo¢atiDn 57 29 57 29 86 86 Strategic Inv•stm•nt Projects (s88 bolow) S64 600 Support costs Inote 91 2.110 2,110 Total expenditure on resoU￿l￿g Ministy8nd All$$lon 7,957 1,582 35 9.574 Expendltur8 on educatlon: Support for church schools and young people School building grants 340 340 480 480 Total fund$ 8.847 2,062 35 10,944 Canterbury Diocesan 8oard of Financè Page 55 Appendix- Comparative notes to the financial statements Year lo 31 December 2020 10. Analysls of total expenditure Activities Grant funding of 2020 Total fund5 £'ooo Support costs undertaken £'ooo £'ooo £'ooo Ra15ing fund5 Charitabl8 aclivitl8S Contributions lo Archbishops. Council Resourcing Ministry and Mission Education 330 330 550 813 480 550 9,574 820 6,651 340 2,110 7,321 1,843 2,110 11.274 20. Statement of funds Brought forward al 1 January 2020 Carried forward * 31 Decemb8r 2LF20 Transfers in loull £000 Gains Ilosse51 £'ooo Income Expenditure £'ooo £'ooo £'ooo £'ooo Endowment funds Ministry Tru51 Fund Clergy Training Fund Talt Mission Fund Benefice Prop8rti88 Fund Board of Education Gener81 Fund Slipend5 Capital Fund 1.987 548 201 65,748 1.332 2,666 72.482 95 2.082 575 27 218 19501 3.052 67,850 1,350 2.788 74,863 21 1351 1351 157 21 19501 3,345 Rè$trictÈd funds Clergy and Spouses Ret1￿meThI Fu Allchurch88 Trust Lowèr Income Communities Fur Resourcing Ministerial Education Strategic Investment Projacts School Building5 Fund Education Funds Other Fund5 Diot￿an Pastrjral Ac(x)ur4t Fund 710 42 45 750 16 12S 791 209 379 667 178 274 17911 12091 74 14801 187 178 269 316 324 1,150 2,623 12,0621 45 1,756 tlesignated lunds Ministry Housing Spirituality Fund Witney Fund Training Fund 12.237 239 1.065 23 950 13,187 254 1,055 23 29 1831 13.564 35 1831 950 53 14,519 General funds General 9,694 18,9481 9.0311 779 Total unrèstrlcted fvnds 13.593 9,729 950 57 15.298 Total Charlty funds Non-¢haritable trading funds Total Group funds 87.225 75 12.373 144 3.447 91,917 73 11461 111,2741 87,300 12,517 3.447 91,990 Canterbury Diocesan Board of Finance Page 56 Appondlx-. Comparatlve notè$ to the financial statemènts Year lo 31 De￿mber 2020 20. Statement of funds Icontinuedl Brought forward a11 January 2020 £'ooo Carried forward at 31 Decefflber 2020 £'ooo Summary.. Group funds 2020 Transfers in Incotne Expenditure G8ins £'ooo £'ooo £'ooo £'ooo Designated fund8 General funds land non-charilable trading fund31 Unrestricted funds Endowment funds Restricted funds 13,564 35 1831 950 53 14,519 104 13.668 72,482 1.150 87,300 9,838 9.873 21 2.623 12,517 19,0941 19.1771 1351 I2,￿2) 111.2741 852 950 19501 5T 3,345 45 15,371 74,863 1,756 91.990 Total funds 3.447 21. Analysi$ of net assets batwèen funds An analysis of the group net assets beiween fvnds at 31 December 2020 is given below.. Total funds 2020 £'ooo General funds £'ooo Designat8d funds £'ooo Restdcled funds £'ooo Endowment funds £'ooo Group 2020 Tangib18 fixed assets Fixed 8SSÈt investments Current assets Creditors due within one year C￿dItorS du8 in more than one ytrar Total funds 2,689 399 1,530 12,4311 11,3351 852 13,196 1,435 924 11.0361 67.584 5,537 1,742 83.469 8.150 6.066 14,3601 11,3351 91.990 779 1,870 18931 14,519 1.756 74,863 General funds include non-charitabltr trading funds of £73k. Canterbury Diocesan Board of Finance Page 57