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2024-12-31-accounts

Gloucester Diocesan Board of Finance Annual Report & Accounts 2024

Contents

Board of Trustees

The Right Reverend Rachel Treweek (President) Canon Karen Czapiewski (Chair)(resigned 5 October 2024) Mr David Roberts (Chair) (appointed 5 October 2024) The Ven Phil Andrew (resigned 31 December 2024) Reverend Andrew Blyth

Prof Patricia Broadfoot (resigned 5 October 2024) Mr Robert Bryant-Pearson (appointed 9 February 2025) Mr George Collins

Reverend Richard Coombs (appointed 5 October 2024) Reverend Henry Curran (resigned 5 October 2024) The Ven Hilary Dawson

Reverend James Faragher (resigned 5 October 2024) Reverend Dr Sarah Haden (appointed 5 October 2024) Mr Chris Hill

Mr Martin Kingston (resigned 5 October 2024) Ms Rachel Jago (appointed 5 October 2024) Mr Robert McNeil-Wilson

Mr Gerald O’Brien (appointed 9 February 2025) Mrs Carol O’Donnell Reverend Jo Pestell Reverend Ed Sauven Reverend Canon Katrina Scott (resigned 5 October 2024) The Ven Canon Katrina Scott (appointed 30 March 2025) Canon Margaret Sheather (appointed 9 February 2025) The Right Reverend Robert Springett Reverend Graham Stacey (appointed 5 October 2024) Reverend Canon John Swanton (resigned 5 October 2024) Mr Alastair Taylor Mr Kevan Taylor Mr Andy Wilson (resigned 5 October 2024) The Very Reverend Andrew Zihni (appointed 5 October 2024)

Board of Trustees and Principal Officers……………...1 Summary results………….……………………………………….2 Trustees’ report……………………..…………………….....3-14 Independent Auditors’ Report………………………15-18 Consolidated statement of financial activities……19 Summary income & expenditure account………... 20 Consolidated balance sheet…………………………...…..21 Parent balance sheet………………………………………….22 Consolidated cash flow statement…………..……...…23 Accounting policies………………………………………24-28 Notes to the financial statements………………...29-60

Principal Officers

Benjamin Preece Smith – Diocesan Secretary Lucy Taylor – Deputy Diocesan Secretary Lisa Gardner – Chief Financial Officer Sandra Millar – Director of Mission & Ministry

Solicitor

Jos Moule; Diocesan Registrar Veale Wasborough Vizards LLP Orchard Court, Orchard Lane Bristol BS1 5WS

Bankers

Barclays Bank plc 288 Britannia Warehouse The Docks Gloucester GL1 2EH

Registered office

Church House College Green Gloucester GL1 2LY

Auditors

HaysMac LLP 10 Queen Street Place London EC4R 1AG

Investment managers

CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ

Company limited by guarantee Registered number 00162165 Registered charity number 251234

1

How have we done – some hi hli hts g g

number of stipendiary clergy funded by the GDBF -4.0% 2024: 2023: change: 126 121

121

Stipendiary vacancies at 31st December 2024 were 16 (2023:11)

parish share contributions

+1.4% 2024: 2023: change: £6.5m £6.4m

shortfall of parish share to fund parish ministry:[1]

+37% 2024: 2023: change: £2.6m £1.9m

balance sheet value (net assets)

+9.4% 2024: 2023: change: £106m £116m

1 See ‘Ongoing Activities” section on page 9.

2

Trustees’ report

for the year ended 31 December 2024

Structure, Governance and Management

The Gloucester Diocesan Board of Finance (GDBF) is a company limited by guarantee and a registered charity. Its governing instrument is the Articles of Association. These were revised and updated in 2019 and formally adopted by members on 9 March 2019. Printed copies of the revised Articles of Association are available from the Secretary on request. The GDBF’s membership comprises:

Elections and co-options take place every three years. The current triennium started in October 2024. The GDBF, which meets three times each year, is the principal policy making body. It takes advice from its Board of Trustees, constituted as the Bishop’s Council, which examines issues in detail and makes recommendations. The Council also takes executive action in certain matters and deals with day-to-day issues. Members of the Bishop’s Council serve as both directors under the Companies Act and trustees under the Charities Act. Membership is as follows:

Ex-officio members:

Members elected by the GDBF – House of Clergy

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Trustees’ report

for the year ended 31 December 2024

Structure, Governance and Management cont.

Members elected by the GDBF – House of Laity

Co-opted members and nominations

Trustees are recruited, as indicated above, through a mixture of ex-officio positions, elections, and nominations. The Diocesan Secretary oversees membership elections.

An induction pack for trustees is available for new trustees which includes key documents, minutes and strategic discussions. This is supplemented by an invitation to meet with the Secretary to discuss any matters arising or explore further induction.

The GDBF was assisted in its work during the year by the following of committees:

4

for the year ended 31 December 2024

Trustees’ report

Structure, Governance and Management cont.

Emoluments of higher paid employees are determined by the Resources Committee to 31 December 2024 and Finance Committee from 1 January 2025. The terms of reference for this group were established by the Bishop’s Council and includes regular appraisals, remuneration and salary benchmarking and consequent recommendation of changes.

Trustees’ liability insurance (for trustees in their capacity as directors) has been maintained throughout the year for the benefit of the charitable company and its trustees.

The GDBF is the financial custodian for the Diocese of Gloucester, which is an administrative and pastoral area within the Church of England. The GDBF therefore has important relationships with the national institutions of the Church of England, specifically:

Public Benefit

Locally, the GDBF works with Parochial Church Councils (PCCs) which are legally independent bodies that pay contributions, based on an apportionment system, to the GDBF to fund its activities. The GDBF is a tenant of the Dean and Chapter of Gloucester Cathedral, from whom it rents office accommodation. The GDBF manages various charities on behalf of their respective trustees, for which services are provided under service level agreements, namely the Gloucester Diocesan Board of Education (GDBE), including its linked charities, the Voluntary Schools Fund (VSF) and The Bishop Headlam Fund (BHF) and the Charity of Ann Edwards (AEC).

The GDBF is a public benefit entity, and the Trustees are aware of the Charity Commission’s guidance on public benefit and the supplementary guidance for charities whose aims include advancing religion and have regard to that guidance in their administration of the charity.

Strategic Aims

The objects of the GDBF, as set out in its Articles of Association, are:

5

Trustees’ report

for the year ended 31 December 2024

In pursuing these objects, the GDBF acts as the financial executive of and employer for the Gloucester Diocesan Synod. As such it undertakes three principal activities:

In pursuing its objectives and undertaking these activities the GDBF is informed by the diocesan vision, - - LIFE Together. For more information see: https://www.gloucester.anglican.org/about us/our vision/

Strategic Report

Vision: LIFE Together

The LIFE Vision developed during 2022 into “LIFE together” which brings more focus to relationships and gathering as communities, especially worshipping communities.

There are five commitments in LIFE Together:

Substantial resourcing has been made available to specific projects working to this vision, notably Deanery Strategic Planning, Sportily and Church Army Centres of Mission.

Deanery Strategic Planning

Strategic Planning is now in transition from a long period of discernment and discussion into implementing additional work streams to seek to bring about a generational change in the missional fortunes of the Church in the diocese over the next 5-7 year period. The aim is to ensure that by the end of that period the Church’s combined financial footing is firm enough to enable mission to continue at a broadly similar scale to now, albeit in a different and evolving “shape” as regards the component parts of the paid-for parts of delivering that mission.

6

Trustees’ report for the year ended 31 December 2024

Strategic Report cont.

Deanery Strategic Planning cont.

The underlying proposition and culture of the diocesan mission reflects a “parish first” approach which assumes our resilience and longevity is best achieved by strength locally. The focus of the Deanery Strategic Planning process is how best to secure that local resilience and develop a firm foundation for future growth.

Allied to this the GDBF has, since its inception over a hundred years ago, sought to resource and support missions which work at a geographic level more akin to a district or county level. This work is directed principally by the LIFE together Vision and the outworking of the project groups established for the first iteration of that Vision. Recent such missions include Church Army, Grace Network, Sportily and Youth Connectors.

The DSP process has given rise to six priority areas for development:

In addition to this there are connected entities and subsidiaries directly supported by the DBF, notably:

Sportily

Sportily is a wholly owned subsidiary of the GDBF.

Sportily was launched in 2021 with a multi-year commitment of financial support from the Gloucester Diocesan Board of Finance (GDBF) approved by Bishops Council in November 2020.

Sportily is creating a network of fun-loving sport and activity groups across the Diocese, where all children, young people, and their families can try different sports, make new friends and encounter the Christian faith with others. Sportily is currently active in 17 communities across the Diocese, working alongside schools, churches and community partners.

Sportily is part of the Diocese and the LIFE Together vision and operates as part of Bishop Rachel's authorised ministry to the diocese, with a mandate from her, supported by Bishop’s Council.

At the end of 2023 the CEO for Sportily (David Thorpe) stepped down, and during 2024 Chris Priddy and Richard Witham were appointed co-CEOs to take Sportily through the next phase of its growth and mission. During 2024 Reverend Jacqui Hyde served as the Interim Chair of the Board of Trustees and 3 of the trustees were also trustees of the GDBF.

7

Trustees’ report

for the year ended 31 December 2024

Strategic Report cont.

Gloucester Diocesan Board of Education

GDBE is a recently created CIO which combines former staff of the GDBF with assets for the Voluntary Schools Fund to offer a range of services and support to over 100 Church of England Primary Schools in the Diocese. It was chaired throughout 2024 by the Bishop of Tewkesbury, a member of the Board, and led by the Diocesan Director of Education, Jane Borgeaud.

Church Development Agency

In 2024 the GDBF’s long standing property development subsidiary, Good and Faithful Servant, was renamed the Church Development Agency (CDA). This reflects it’s a new remit and leadership (CEO: Daniel Mayes) to use the development experience of the GDBF and CDA as a basis for wider transformation in the Church’s response to housing need, particularly in the West Midlands region. They were very fortunate in this work to secure £1.8m of funding from Oak Foundation for work to release sites, especially Church owned sites, for social housing.

Grace Network

Grace Network is a modern day monastery and social enterprise co-operative based in Brimscombe which builds community and from that a new monastic community. Their main engagement and funding come from ethical businesses sharing resources and space in a different iteration of the “seven sacred spaces” model.

In 2022 the Board awarded grant funding of £1.5m to enable this model to expand into two new locations. These sites have now been confirmed as Aston Down (near Minchinhampton) and Cirencester Market Place. Aston Down is focused on delivering a model of monastic community built around work that does not have a “retail offering” but rather focussing on network business such as furniture clearance, food delivery and school meals. Cirencester by contrast attempts to increase the retail focus and footfall by taking over a semi-derelict ex House of Fraser building in the prime retail area of Cirencester focussed on delivering a faith led community in the “High Street”.

Aston Down has been operational since mid-2023. Cirencester opened in late 2024.

Jumping Fish

Jumping Fish is a small publishing company wholly owned by GDBF. The Board is currently considering the future of this business. They make a small trading surplus of £7k towards GDBF’s costs.

Ann Edwards Charity

AEC is a small Almshouse Charity operating principally in Gloucester. It focuses on the quality of its provisions and is a much loved and valued part of the diocesan family of charities which requires no financial support from GDBF.

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Trustees’ report

for the year ended 31 December 2024

Achievements and performance in the year

Financial Review

The results for 2024 show an 9.6% increase in parish ministry costs compared to the consistency of 2023, 2022, and 2021.

The CPI annual percentage increase in the year ended 31 December 2024 was 2.5%. The true effect of this increase in costs is demonstrated by the increase in the resourcing of parish ministry in 2024. The inflationary increase in the economy affected the worshipping community who were financially unable to match the increase in costs with parish share.

Fig1: Parish Share Collected cf. Parish Ministry Costs

2020
£m		 2021
2022
2023
2024
£m
£m
£m
£m
Parish Share
6.5		 6.3
6.5
6.4
6.5
Resourcing Parish Ministry (Direct)2
(7.8)		 (8.1)
(8.1)
(8.3)
(9.1)
Deficit
(1.3)		 (1.8)
(1.6)
(1.9)
(2.6)

The consistent level of parish share, whilst illustrating resilience also indicates the need for a strategic change in the Church of England’s ministry in order to see long term flourishing of the Gospel. The national review of DBF finances by BDO showed all DBFs are significantly below historic levels of congregational numbers and financial income from Parish Share. This would therefore appear to be a systemic issue in the Church of England which the Board can influence but not control.

Financially the Board’s property development strategy is strong and will provide resilience for some time, however the availability of stipendiary clergy for the next decade is a real concern. Developing

high quality leadership is fundamental to the growth of the Church and is potentially the single most important focus for the next few years.

2 See Note 9

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Trustees’ report

for the year ended 31 December 2024

Plans for future periods

The Strategic Report (above) sets out the main approach of the Diocese to addressing its core challenges for the next few years. The Board is committed to using the Unapplied Total Return (UTR) built up over many years to cover the deficits necessary to maintain an appropriate deployment of parish ministry. Whilst change may be necessary to ensure the right pattern of ministry in future the Board seeks to ensure the matter of ministerial deployment is addressed as a missional question that is financially informed but not financially driven.

In the immediate term the Board will focus on its management of assets to ensure the new strategic work can be funded and buy the time for parish ministry to engage with the DSP process in meaningful ways that ensure authentic, long-term proposals are agreed for each part of the Diocese.

It is the work of the next year or so to start implementing a strategy that maps out a realistic and deliverable model of ministry for the coming decade and which ultimately leads to a position of growth from one of many decades of decline.

Church Housing Association

In early 2024 the Board granted £600k towards the Church Housing Association (CHA) of which it is the corporate member. The CHA is now a Registered Provider of social housing. Its initial area of operation will be the West Midlands, and it is actively exploring sites in the region, including within Gloucester. CHA is a community benefit society with membership shared between the GDBF and the Directors of CHA, so it is not “owned” by GDBF although as the sole corporate member GDBF can be considered the “parent company” of this important entity.

Church Development Agency

Church Development Agency (CDA) (formerly Good and Faithful Servant) appointed a new CEO/Surveyor after several years without a such a role. The remit of this CEO is to expand the operation of CDA into other dioceses.

Carbon Net Zero

The Board takes seriously the Synodical motion at both General and Diocesan Synod to reach net zero carbon by 2030, and progress has accelerated rapidly since June 2024. The Board is delivering this through a three-way partnership with Hereford and Worcester DBFs with some grant support from the National Church Institutions (NCI). 2024 has seen the commissioning of a Net Zero Carbon Management Board, responsible for developing the strategic vision and reporting progress. Baseline emissions across all emissions categories are now better understood, and many success stories exist whereby decarbonisation is already occurring at pace.

In the area of clergy housing emissions, the Board has taken a fabric-first approach to energy improvements, thereby improving retrofit readiness. In areas where the Board influences rather than controls, it has nevertheless taken a proactive approach. In support to church PCCs, the Gloucester DAC

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Trustees’ report

for the year ended 31 December 2024

takes the 2030 Net Zero commitment seriously and operates a firm policy against like for like replacements of fossil fuel boilers unless there is a very good reason for allowing them and has assisted in securing some national funding for improvement works. In the schools' space, funding

decarbonisation is the responsibility of the DfE but the Board seeks to support all schools in readiness of funding becoming available.

Principal risks and uncertainties

The Trustees are responsible for the identification, mitigation and management of risk. To achieve this, a register of all the risks identified is maintained and, alongside it, a management and mitigation strategy formed. This is reviewed by the Audit Committee on an annual basis with the responsibility for delivery of the mitigation strategies identified delegated to the Diocesan Secretary.

The risk register identifies the following areas where the risk of either failure to act or the impact of the events is considered ‘high’. These areas and the associated mitigation strategies are:

Governance and Management:

Operational Risks

Financial Risks

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Trustees’ report

for the year ended 31 December 2024

External Risks

Going Concern

The trustees have reviewed the Board’s financial position, in the light of its faith in the Risen Christ, its losses from ongoing activities and its long-term balance sheet strength.

Taking account of the satisfactory levels of aggregate reserves (see Reserves Policy note below) and cash, and systems of financial and risk management, it is the trustees’ opinion that the charity is well placed to manage operational and financial risks successfully. Accordingly, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and do not believe that there are any material uncertainties as to the going concern of the charity. Therefore, the trustees are content that the charity continues to adopt the going concern basis of accounting in preparing the annual accounts.

Investment policy

The Board maintains a review of its investments through the Investment Group which also monitors performance against market benchmarks and considers the adequacy of its investment mix.

The Board also ensures it invests in line with the Church of England Ethical Investment Advisory Group Policy. To achieve this, it uses the investment management skills of a professional fund manager; CCLA. The table below has been extracted from the quarterly CCLA report at 31 December 2024 reflecting the investment performance.

Fund total return performance
CBF Fund holdings within portfolio		 Current
Quarter
(%)		 Last
twelve
months
(%)		 Last three
years
annualised
(%)		 Last five
years
annualised
(%)
Investment +0.39 +5.09 +2.43 +6.82
Fund comparator +4.84 +15.30 +5.51 +7.40
Deposit +1.19 +5.18 +3.69 +2.29
Fund benchmark +1.22 +5.23 +3.76 +2.26

The fund’s performance was close to the CPI+4% investment objective, up 5.1% versus 6.5%.

Leadership in 2024 was one of the most concentrated in stock market history, i.e. relatively few stocks were responsible for much of the overall market’s performance. The fund’s performance, relative to its comparator, was impacted by its underweight exposure to the so-called ‘Magnificent 7’ stocks. The

12

Trustees’ report

for the year ended 31 December 2024

fund’s relative performance also suffered from weakness in the share prices of businesses and segments in which we have confidence for the long term.

Steep rises in bond yields at the end of 2024 led to falling valuations for alternative assets such as infrastructure and private equity.

Stock market valuations are high, especially for US stocks, but they are backed by mostly solid macroeconomic fundamentals. US economic growth, in particular, continues to be impressive.

The underlying health of the businesses in the fund’s portfolio is strong. The fund’s diversified portfolio is well-positioned to benefit from a broadening of the ongoing stock market rally.

The Investment Group has provided comfort to the Board that its assets were invested in line with its ethical policies and financial performance was above the relevant benchmarks set.

Looking forward the Board is keen to consider more social minded and local investments should the predicted cash surpluses from land disposals materialise in the coming years.

Reserves policy

The policy of the GDBF is to maintain a general fund reserve of between 4 and 8 months of parish share (i.e., between £2.2m and £4.3m) plus any budgeted deficit for the year on the general fund (i.e., for 2024 between £4.5m and £6.7m).

This level is considered prudent to manage for the cash flow deficit experienced each year resulting from parish share contributions being remitted irregularly during the year, (whereas the GDBF’s expenditure is consistent on a month-by-month basis), and also to allow for unexpected occurrences.

At 31 December 2024, the general fund balance is £4.3m (2023: £4.5m) with free reserves of £1.6m (2023: £2.0m). Although the free reserves are below the target level, funds are held in investments which can be liquidated to ensure the GDBF holds sufficient funds to follow the requirements of the policy. Furthermore, the size of the Unapplied Total Return (UTR) relative to qualifying annual expenditure offers significant comfort that this does not present any operational difficulties.

The GDBF holds designated reserves of £7.2m (2023: £6.3m), restricted reserves £5.2m (2023: £5.1m) and endowment funds of £99.2m (2023: £90.1m) at 31 December 2024.

Fundraising activities

The charity undertakes very limited fundraising activities directly with individuals. The majority of the GDBF’s income comes from other charitable entities. The GDBF does not use third party professional fundraisers and did not receive any complaints about its fundraising practices during 2024.

Trustees’ responsibilities in respect of the financial statements

The Trustees are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

13

Trustees’ report

for the year ended 31 December 2024

Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the GDBF and of the income and expenditure for the period. In preparing those financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the GDBF and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the GDBF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statements as to disclosure of information to auditors

Each of the Trustees confirms that to the best of their knowledge there is no information relevant to the audit of which the auditors are unaware. The Trustees also confirm that they have taken all the necessary steps to ensure that they themselves are aware of all relevant audit information and that this information has been communicated to the auditors.

Statements as to disclosure of information to auditors cont.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Board’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Trustees’ report, incorporating the Strategic Report, was approved by the Board of Trustees on 20 June 2025.

+Rachel Gloucestr:

Mr David Roberts

President, Gloucester DBF

Chair, Gloucester DBF

14

Independent Auditors’ Report

To the Trustees of Gloucester Diocesan Board of Finance

Opinion

We have audited the financial statements of the Gloucester Diocesan Board of Finance for the year ended 31 December 2024 which comprise the consolidated Statement of Financial Activities, the Income and Expenditure Account, the consolidated and parent Balance Sheets, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements 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 other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

15

Independent Auditors’ Report cont. To the Trustees of Gloucester Diocesan Board of Finance

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report (which incorporates the strategic report and the Trustees’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

16

Independent Auditors’ Report cont. To the Trustees of Gloucester Diocesan Board of Finance

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 13, the trustees (who are also the Trustees of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding vulnerable beneficiaries, health and safety, and employment (including taxation), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and Church of England Measures.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition.

17

Independent Auditors’ Report cont. To the Trustees of Gloucester Diocesan Board of Finance

Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors’ report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Halsey (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of HaysMac LLP, Statutory Auditor London EC4R 1AG

Date 27 June 2025

18

Consolidated statement of financial activities

for the year ended 31 December 2024

Income & endowments from Notes General fund
Designated
funds
Restricted
funds
£’000
£’000
£’000		 General fund
Designated
funds
Restricted
funds
£’000
£’000
£’000		 General fund
Designated
funds
Restricted
funds
£’000
£’000
£’000		 Endowment
funds

£’000		 Total
2024		 Total
2023
£’000

£’000
Donations
parish share contributions 1 6,469
-
-		 - 6,469 6,377
church commissioners 2 54
-
-		 - 54 63
grants and other donations 3 196
-
719		 - 915 767
Charitable activities: statutory fees
and licence to occupy income		 716
-
216		 - 932 782
Other activities 4 179
-
-		 - 179 117
Investments 5 1,172
6
252		 - 1,430 1,071
Other 6 19
-
12		 14,823 14,854 1,521
Total 8,805
6
1,199		 14,823 24,833 10,698
Expenditure on
Raising funds 7 179
-
-		 - 179 86
Charitable activities 8 11,648
2,119
1,545		 29 15,341 13,316
Total 9 11,827
2,119
1,545		 29 15,520 13,402
Net (expenditure)/income before
investmentgains		 (3,022)
(2,113)
(346)		 14,794 9,313
(2,704)
Net gains on investments 20 -
-
70		 523 593
13,422
Net (expenditure)/income (3,022)
(2,113)
(276)		 15,317 9,906
10,718
Total return transfer 16c 6,162
-		 - (6,162) - -
Net (expenditure)/income after
total return transfer		 3,140
(2,113)		 (276) 9,155 9,906 10,718
Transfers between funds 20 - 23 (3,312) 3,020 349 (57) - -
Net movement in funds (172)
907		 73 9,098 9,906 10,718
Total funds brought forward 4,493 6,285 5,080 90,093 105,951 95,233
Total funds carried forward 4,321 7,192 5,153 99,191 115,857 105,951

19

Consolidated summary income & expenditure account

for the year ended 31 December 2024

The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law.

2024 2023
£’000
£’000
Total income 10,010 9,202
Expenditure (15,491) (13,373)
Operating (deficit) for the year (5,481) (4,171)
Net gains on investments 70 264
Net (expenditure) for the year (5,411)
(3,907)

Other comprehensive income:
Net assets transferred from endowments		 6,219
1,769
Total comprehensive income/(expenditure) 808
(2,138)

All income and expenditure is derived from continuing activities.

Full comparatives for the year to 31 December 2023 are shown in note 28.

The notes on pages 24 to 60 form part of these financial statements.

20

Consolidated balance sheet

as at 31 December 2024

Consolidated balance sheet
as at 31 December 2024
C ompany number 00162165
Notes 2024 2023
£’000
£’000
Tangible assets
15a		 51,485 48,203
Investments
16a		 34,122 52,904
Fixed Assets 85,607
101,107
Stock and work in progress
17		 40 43
Debtors:amounts falling due after one year
18a		 511 494
Debtors:amounts falling due within one year
18a		 15,179 1,760
Cash at bank and in hand 15,921 3,772
Current Assets 31,651
6,069
Creditors:amounts falling due within one year
19a		 (1,052)
(751)
Net Current Assets(Current assets less creditors <1 year) 30,599 5,318
Total Assets less current liabilities (Fixed Assets plus NCA) 116,206 106,425
Creditors:amounts falling due after one year
Other creditors
19a		 (349)
(474)
Net Assets 115,857
105,951
Endowment funds
20,23		 99,191 90,093
Restricted funds
20,22		 5,153 5,080
Designated funds(unrestricted)
20,21		 7,192 6,285
General fund(unrestricted)
20		 4,321 4,493
Total funds 115,857
105,951

Approved by the Board of Trustees on 20 June 2025 and signed on its behalf by

David Roberts, Chair

The notes on pages 24 to 60 form part of these financial statements.

21

Parent company balance sheet

as at 31 December 2024

s at 31 December 2024
C ompany number 00162165
Notes 2024 2023
£’000
£’000
Tangible assets 15b 49,767 46,863
Investments 16b 33,937 52,738
Fixed Assets 83,704
99,601
Debtors:amounts falling due after one year 18b 511 494
Debtors:amounts falling due within one year 18b 15,186 1,773
Cash at bank and in hand 14,283 1,756
Current Assets 29,980
4,023
Creditors:amounts falling due within one year 19b (911)
(682)
Net Current Assets(Current assets less creditors <1 year) 29,069 3,341
Total Assets less current liabilities (Fixed Assets plus NCA) 112,773 102,942
Creditors:amounts falling due after one year
Other creditors
19b		 (349)
(474)
Net Assets 112,424
102,468
Endowment funds 98,260 89,181
Restricted funds 2,582 2,507
Designated funds(unrestricted) 7,192 6,285
General fund(unrestricted) 4,390 4,495
Reserves 112,424
102,468

Approved by the Board of Trustees on 20 June 2025 and signed on its behalf by

David Roberts, Chair

The notes on pages 24 to 60 form part of these financial statements.

22

Consolidated cash flow statement

for the year ended 31 December 2024

Notes 2024 2023
£’000
£’000
Net cashused in operating activities (19,847) (6,418)
Interest paid
5		 (44) (57)
Net cash outflow from operating activities (19,891) (6,475)
Investing activities
Dividends and interest received
5		 1,285 1,066
Proceeds from sale of tangible fixed assets 3,096 2,621
Purchase of tangible fixed assets for use by GDBF
15a		 (5,082) (1,108)
Purchase of fixed asset investments
16a		 (26) (23)
Sale of fixed asset investments
16a		 32,752 871
Net cash generated from investing activities 32,025 3,427
Financing activities 25
(20)
Loan repaid to GDBF 60
Loan advanced by GDBF (45)
Net cash generated from financing activities 15 5
Net increase/(decrease) in cash and cash equivalents 12,149 (3,043)
6,815
Cash & cash equivalents at beginning of year 3,772
Cash & cash equivalents at end of year 15,921
3,772
Reconciliation net movement in funds to net cash flow from operating
activities:
Net income/(expenditure) for the year 9,313 (2,704)
Adjustments for:
Depreciation and amortisation charges 176 81
Finance costs 43 32
Dividends, interest & rent from investments (1,430) (1,071)
Profit on sale of functional assets (1,472) (1,195)
Profit on sale of investments (13,351) (301)
Decrease/(increase) in stock and work in progress 3 (20)
(Increase) in debtors (13,305) (1,143)
Increase/(decrease) in creditors 176 (97)
Net cash used in operating activities (19,847)
(6,418)
Analysis of cash and cash equivalents
Cash in bank & in hand 15,921
3,772
Total cash and cash equivalents 15,921
3,772

23

Accounting policies

for the year ended 31 December 2024

The principal accounting policies adopted are as follows:

Basis of Accounting

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd edition, effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charitable company and its wholly owned subsidiaries on a line-by-line basis. The subsidiaries are Jumping Fish Limited, The Church Development Agency, Sportily Limited and the Ann Edwards Charity. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. The deficit of the parent charity for the year was £3.968 million (2023: deficit of £2.753 million). Gloucester DBF meets the FRS102 definition of a Public Benefit Entity.

The principal accounting policies and estimation techniques are as follows.

Income

All income is included in the Statement of Financial Activities (SoFA) when legally entitled to it as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.

Parish Share contributions by parishes are included in the financial statements when there is certainty of receipt. Donations are recognised when received. Legacies are recognised when there is reasonable certainty as to both entitlement and amount. Grants from government bodies and other sources are received for specific projects/costs and are recognised in accordance with their individual terms and conditions. Income is recognised when the Charity has entitlement to the funds which is when any performance conditions attached are met, it is probable that the income will be received and the amount can be reliably measured. Grant income will be deferred if received in advance of meeting performance conditions or if the funder specifically states that the income must be spent in a future accounting period. Contractual income and performance related grants are included in the SOFA only when the related goods or services have been delivered. Interest and dividends are included in the financial statements when receivable. Rental income is recognised in the period to which the rent relates.

Gifts in kind are accounted for at a reasonable estimate of their value to the Charity or at the amount actually realised. Gifts in kind for use by the Charity are included in the SOFA as income when receivable.

Donated services and facilities are included in income (with an equivalent amount in expenditure) only where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.

Investment income arising upon the Diocesan Stipends Fund is credited to the unapplied total return in the year in which the income is due.

Expenditure

Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Activity category.

24

Accounting policies

for the year ended 31 December 2024

Expenditure cont.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Volunteers

The value of any voluntary help received is not included in the accounts but is described in the trustees’ report.

Going Concern

The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of its financial position, levels of reserves and future plans give the Trustees confidence the charity remains a going concern for a period in excess of 12 months from the date of approval of these accounts. This review has included an assessment of cash flow forecasts.

Depreciation

Depreciation on equipment is calculated on a straight-line basis at annual rates estimated to write off the assets over their respective expected useful lives, as follows:

Leasehold property improvements 5%
 Assets under construction 0%
Office equipment 20%-33% Office and other furniture 10%-20%
Telephone equipment 20%
 Computer equipment 25%-33%
Solar PV panels 25 years Sports equipment 20%-33%
Motor Vehicles 25%
 Improvements
 20%

25

Accounting policies

for the year ended 31 December 2024

Depreciation cont.

No depreciation is provided on clergy houses. As the remaining useful life of these assets exceeds 50 years and a programme of planned maintenance ensures that the residual value does not fall below the carrying value, any depreciation would be immaterial. An annual impairment review is carried out in accordance with FRS102.

Tangible fixed assets

Tangible fixed assets with a useful life of over 1 year and costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Clergy houses and other land and buildings owned by the GDBF group as corporate property are included in the financial statements at historical cost. It is the opinion of the Trustees that the cost represents the residual value of the buildings and land, whose useful life exceeds 50 years, and, as a consequence, no depreciation charge has been made.

Clergy houses owned by benefices are included in the financial statements at a carrying value established by the Trustees and based on a professional valuation in December 2000. Houses acquired since that date are included at cost, and any major improvements are capitalised to the extent that the carrying value does not exceed the estimated net realisable value. Although the Board does not own these houses, it has the responsibility for maintaining them and receives any sale proceeds on disposal if the house becomes surplus under a pastoral scheme. Under FRS102 the Board considers that it has access to the benefits of these houses and also the associated risks and therefore needs to recognise them as assets in the financial statements. Solar PV panels installed on clergy houses are included within the asset value of the house and depreciated on a straight-line basis over 25 years.

Fixed asset investments

Listed investments are stated at open market value at the balance sheet date with the gain or loss arising on the investment funds representing the Diocesan Stipends Fund, taken directly to the unapplied total return and others to the Statement of Financial Activities. For units held in managed funds of the Central Board of Finance this is the published bid price. Investment properties, which comprise the glebe portfolio, are stated at Trustees’ valuation. The valuation is arrived at after taking appropriate professional advice and is reviewed each year. Certain short-term cash deposits, which are held for long term investment purposes, are included in fixed asset investments.

Financial Instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at either amortised cost or fair value as noted below.

Stock and Work in progress

Stock and work in progress are valued at the lower of cost and net realisable value. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. At the end of each reporting period debtors are assessed for evidence of impairment. If an asset is impaired an impairment loss is recognised in the Statement of Financial Activities.

26

Accounting policies

for the year ended 31 December 2024

Cash

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short-term maturity.

Creditors

Basic financial liabilities, including trade and other payables and bank loans, are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at transaction price.

Fund accounting

The resources of the Board are classified according to restrictions imposed on their use by donors or by legislation, and in accordance with the SORP, as follows:

During 2019, Bishops Council approved a total return approach to investment for the investments held as one of the GDBF’s permanent endowments – the Diocesan Stipends Fund (DSF). This change in policy took effect from 1[st] January 2019 and since then GDBF has operated a total return approach to the management of the investment portfolio attributable to the DSF. Using this approach, GDBF is required to analyse the fund between the amount held for investment (non-distributable funds) and the unapplied total return. GDBF is permitted to allocate from the unapplied total return element, such sums as the Board see appropriate, provided that the Board exercise their statutory duty to be even handed as between present and future beneficiaries and that they maintain the unapplied total return at such a level as to ensure it remains positive, after having due regard to the volatility of the investment markets. GDBF’s objective is also to maintain the value of non-distributable funds in real terms.

Operating leases

Rental payments under operating leases are charged to the Statement of Financial Activities on a straightline basis over the term of the lease.

Judgements and estimates

In the application of the accounting policies, the Trustees are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

27

Accounting policies

for the year ended 31 December 2024

Judgements and estimates cont.

Significant judgements:

Valuation of investment properties - Investment properties are stated at trustees’ valuation after taking appropriate professional advice.

Depreciation of clergy houses - The Trustees consider that residual value of freehold properties is equivalent to the carrying value and depreciation would not be material.

Sources of estimation uncertainty:

In the view of the Trustees there are no sources of estimation uncertainty affecting assets or liabilities at the balance sheet date that are likely to result in a material adjustment to their carrying amounts in the next financial year.

28

Notes to the financial statements

for the year ended 31 December 2024

Note 1
Parish Share		 Deanery
Confirmed
Allocations for
2024
£’000		 Received in 2024
re 2024
£’000		 Received in 2024
re prior years
£’000		 2024 2023
£’000
£’000
Gloucester City 564 562 - 562 571
Severn Vale 635 617 - 617 606
Forest South 345 362 3 365 358
Wotton 438 617 - 617 586
Stroud 578 578 2 580 598
Cheltenham 1,392 1,327 - 1,327 1,291
North Cotswold Deanery 938 925 3 928 883
Cirencester 926 923 - 923 929
Tewkesbury & Winchcombe 552 546 - 546 550
Other - 4 - 4 5
Parish Share contributions 6,368
6,461
8
6,469
6,377
Note 2
Income from the Church Commissioners		 2024 2023
£’000
£’000
Grant re Bishop’s share of registrar’s retainer 54 63
Church Commissioner grants received 54
63

29

Notes to the financial statements

for the year ended 31 December 2024

Note 3
Grants and other donations		 Unrestricted
£’000		 Designated
£’000		 Restricted
£’000		 Endowment
£’000		 Total
2024		 Total
2023
£’000
£’000
Ecclesiastical Insurance Group grant 72 - - - 72 84
Oak Foundation grant 41 - - - 41 -
Other grants 24 - - - 24 21
Archbishops’ Council grant - - 39 - 39 131
Other restricted grants/donations - - 558 - 558 270
Sportily grants/donations - - 122 - 122 178
Other donations 59 - - - 59 83
Grants and donations 196
-
719
-
915
767
Note 4
Other activities		 Unrestricted
£’000		 Designated
£’000		 Restricted
£’000		 Endowment
£’000		 Total
2024
£’000
Total
2023
£’000
Rental of vacant housing 159 - - - 159 89
Property development: CDA* - - - - - -
Educational services: JF Ltd* 19 - - - 19 20
Other income 1 - - - 1 8
Total 179 - - - 179 117

In 2023, £109k of other activities income was unrestricted, and £8k was designated.

*The principal activity of Church Development Agency (CDA formerly Good & Faithful Servant Limited) is the development of property, whilst Jumping Fish’s (JF Ltd) is the publication of educational materials and professional services, for advertisement of the Christian religion.

30

Notes to the financial statements

for the year ended 31 December 2024

Note 5
Investments		 2024 2023
£’000
£’000
Income from fixed asset investments 1,345 1,028
Other interest receivable and similar income 45 3
Rent receivable 40 40
Investments 1,430
1,071

In 2024, £1,172k (2023: £832k) of investment income was unrestricted, £6k (2023: £6k) was designated and £252k (2023: £233k) was restricted.

Note 6
Other		 2024 2023
£’000
£’000
Gain on disposal of tangible fixed assets* 1,472 1,195
Gain on investment property 13,351 301
Miscellaneous income 31 25
Other 14,854
1,521

In 2024, £19k (2023: £12k) of other income was unrestricted, £nil (2023: £nil) was designated, £12k (2023: £13k) was restricted and £14,823k (2023: £1,496k) was endowed.

Note 7
Raising funds		 2024 2023
£’000
£’000
Tenancy costs associated with the letting of vacant properties 57 57
Property development – Church Development Agency Limited 110 14
Educational services – Jumping Fish Limited 12 15
Raising funds 179
86

31

Notes to the financial statements

for the year ended 31 December 2024

Note 8
Charitable activities
Contributions to Archbishops’
Council:		 Unrestricted
£’000		 Designated
£’000		 Restricted
£’000		 Endowment
£’000		 2024 2023
£’000
£’000
National Church responsibilities 214 - - - 214 210
Training for Ministry 312 - - - 312 319
Training of Ordinands – support
grants		 120 - - - 120 155
Pooling of Ordinand support costs (37) - - - (37) (42)
Mission agencies pension
contributions		 - - - - - 10
Retired clergy housing costs
(CHARM)		 128 - - - 128 121
737 - - - 737 773
Resourcing Ministry & Mission:
Stipends, employed Clergy and
National insurance		 3,719 - - - 3,719 3,500
Clergy pension contributions
726		 - - - 726 772
Housing costs including removal
and resettlementgrants		 2,259 - - - 2,259 1,945
Parochial fees payable to PCCs 343 - - - 343 287
7,047 - - - 7,047 6,504
Support for Parish Ministry 3,814 88 371 29 4,302 3,767
10,861 88 371 29 11,349 10,271
Expenditure on Education:
Grant to GDBE (note 11) - 123 - - 123 115
Grant to DGAT (note 11) - 11 - - 11 16
Other Expenditure:
Grants awarded (note 11) 50 1,897 153 - 2,100 1,162
Charitable activities of Ann Edwards
charity		 - - 76 - 76 102
Charitable activities of Sportily - - 945 - 945 877
11,648
2,119
1,545
29		 15,341
13,316

32

Notes to the financial statements

for the year ended 31 December 2024

Note 8 cont.
Comparative analysis for 2023
Charitable activities
Contributions to Archbishops’ Council:		 Unrestricted
2023
£’000		 Designated
2023
£’000		 Restricted
2023
£’000		 Endowment
2023
£’000		 Total
2023
£’000
National Church responsibilities 210 - - - 210
Training for Ministry 319 - - - 319
Training of Ordinands – support grants 155 - - - 155
Pooling of Ordinand support costs (42) - - - (42)
Mission agencies pension contributions 10 - - - 10
Retired clergy housing costs (CHARM) 121 - - - 121
773 - - - 773
Resourcing Ministry & Mission:
Stipends, employed Clergy and National
insurance		 3,500 - - - 3,500
Clergy pension contributions 772 - - - 772
Housing costs including removal and
resettlementgrants		 1,945 - - - 1,945
Parochial fees payable to PCCs 287 - - - 287
6,504 - - - 6,504
Support for parish ministry 3,337 83 318 29 3,767
9,841 83 318 29 10,271
Expenditure on Education:
Support for church schools - 115 - - 115
Grant to DGAT (note 11) - 16 - - 16
Other Expenditure:
Grants awarded (note 11) - 1,131 31 - 1,162
Charitable activities of Ann Edwards
charity		 - - 102 - 102
Charitable activities of Sportily - - 877 - 877
10,614
1,345
1,328
29
13,316

33

Notes to the financial statements

for the year ended 31 December 2024

Note 9

Analysis of expenditure including the allocation of support costs

Activities
undertaken
directly
2024
£’000		 Grant
funding of
activities
2024
£’000		 Support
costs
2024
£’000		 Total costs
2024
£’000
Raising funds 179 - - 179
Charitable activities:
Contributions to Archbishop’s Council - 737 - 737
Resourcing parish ministry 9,074 88 2,187 11,349
Education - 134 - 134
Other expenditure 768 2,100 253 3,121
Total 10,021 3,059 2,440 15,520
Comparative analysis for 2023 Activities
undertaken
directly
2023
£’000		 Grant
funding of
activities
2023
£’000		 Support
costs
2023
£’000		 Total costs
2023
£’000
Raising funds 86 - - 86
Charitable activities:
Contributions to Archbishop’s Council - 773 - 773
Resourcing parish ministry 8,390 83 1,798 10,271
Education - 131 - 131
Other expenditure 778 1,162 201 2,141
Total 9,254 2,149 1,999 13,402

Notes 10 to 14 provide further details on expenditure for 2024.

34

Notes to the financial statements

for the year ended 31 December 2024

Note 10
Analysis of support
costs		 Unrestricted funds
General Designated		 Unrestricted funds
General Designated		 Restricted
Funds		 Endowment
Funds		 Total
funds
2024		 Total
funds
2023
£’000 £’000 £’000 £’000 £’000 £’000
Central administration 2,094 - 241 29 2,364 1,925
Governance:
External audit 44 - 12 - 56 49
Chancellor and
Professional fees		 15 - - - 15 14
Synodical costs 5 - - - 5 11
Total 2,158 - 253 29 2,440 1,999

In 2023, £1,707k of central administration costs was unrestricted, £189k was restricted and £29k was endowed. Of the remaining expenditure of £62k was unrestricted and £12k was restricted.

Note 11
Summary of grants made:		 2024
number		 2023
number		 2024 2023
£’000
£’000
Church Housing Association grant 1 - 83 -
Church repairs 1 1 10 10
Coopers Edge Grant 1 - 50 -
GDBE Grant 1 1 123 115
Development Grants 44 25 166 182
DGAT Grant 1 1 11 16
Energy Grants 1 47 5 21
Grace Network 2 1 1,044 400
Housing Initiative 2 1 104 549
Minor Repairs and Improvements Grant 5 - 16 -
Other Grants 4 - 122 -
Viney Hill Grant 1 - 500 -
Grants made in the year 64 77
2,234
1,293

35

Notes to the financial statements

for the year ended 31 December 2024

Note 12
Net movement in funds is stated after charging:		 2024 2023
£’000
£’000
Depreciation 176 81
Auditors’ remuneration
Parent company audit 32 28
Subsidiary entities audit 24 21
Interest on Church Commissioners’ loans:
Loan for Solar Panel installations 12 2
Value Linked Loans on parsonage houses 31 30
Operating leases: Land and buildings (note 24) 64 64
Operating leases: Other (note 24) 12 19
Note 13
Interest on long term loans		 2024 2023
£’000
£’000
Interest on loans wholly or partly repayable beyond 5 years 31 30

All interest relates to value linked loans, being equity share loans made to the GDBF by the Church Commissioners in respect of Parsonage Housing.

36

Notes to the financial statements

for the year ended 31 December 2024

Note 14
Staff costs
Costs of employees and officer holders		 2024 2023
£’000
£’000
Group
salaries and stipends 2,854 2,443
redundancy and termination payments 25 11
social security costs 268 239
other pension costs 488 442
Employees, including clergy in GDBF employment: 3,635
3,135
Parent
salaries and stipends 2,314 1,959
redundancy and termination payments 25 -
social security costs 221 198
other pension costs 415 382
Employees, including clergy in GDBF employment: 2,975
2,539
Stipends 3,252 3,078
social security costs 301 278
pension costs 720 766
Parochial clergy funded by the GDBF: 4,273
4,122
Number of employees including clergy in GDBF employment Number
Number
Average monthly number - Group 85
80
Average monthly number – Parent 61
58
Parochial clergy funded by the GDBF 121
126
The number of employees whose emoluments exceeded £60,000 were as follows:-
Employees earning between £60,001 and £70,000
3
2
Employees earning between £70,001 and £80,000
1
1
Employees earning between £80,001 and £90,000
1
1
Employees earning between £90,000 and £100,000
1
1
Employees earning between £100,000 and £110,000
1
-

37

Notes to the financial statements

for the year ended 31 December 2024

Note 14 Staff costs cont.

The employer's pension contribution for staff earning over £60,000 was £99,887 (2023: £88,065). The GDBF acted as a paymaster for the Gloucester Diocesan Board of Education (GDBE) for the year ended 31 December 2023. The staff costs are included in the GDBE accounts charity number 1199117.

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the Diocese. During 2024 they were:

Diocesan Secretary and Company Secretary Canon Benjamin Preece Smith Director of Mission and Ministry Reverend Canon Dr Sandra Millar Head of Communications Canon Lucy Taylor Director of People, Pastoral and Safeguarding Canon Judith Knight (resigned 31 July 2024) Chief Financial Officer Ms Lisa Gardner

Remuneration and pensions for these five (2023: five) employees amounted to £511k (2023: £499k).

Trustees’/Trustees’ emoluments

No Director/Trustee received any remuneration for services as a Director/Trustee. Ten Directors/Trustees received travelling and out of pocket expenses, totalling £11k (2023 - £13k) in respect of General Synod duties, duties as Archdeacon or Area Dean, and other duties as Directors/Trustees.

Certain trustees of the Board who are also clergy received benefits during the year from the Board as part of its normal charitable activity of providing a stipend and housing for clergy in the Diocese.

The following table gives details of the Directors/Trustees who were in receipt of a stipend and or housing provided by the GDBF during the year:

provided by the GDBF during the year:
Stipend Housing
The Archdeacon of Cheltenham Yes Yes
The Archdeacon of Gloucester Yes Yes
Reverend A Blyth Yes Yes
Reverend R Coombs Yes Yes
Reverend H Curran (resigned 5 October 2024) Yes Yes
Reverend J Farragher (resigned 5 October 2024) Yes Yes
Reverend Dr S Haden (appointed 5 October 2024) Yes Yes
Reverend J Pestell Yes Yes
Reverend K Scott (resigned 5 October 2024) Yes Yes
Reverend Graham Stacey (appointed 5 October 2024) Yes Yes
Reverend Canon J Swanton (resigned 5 October 2024) Yes Yes
Reverend A Wilson (resigned 5 October 2024)* Yes Yes

The GDBF is responsible for funding via the Church Commissioners the stipends of licensed stipendiary clergy in the Diocese, other than bishops and cathedral staff. The GDBF is also responsible for the provision of housing for stipendiary clergy in the Diocese including the Suffragan Bishop but excluding Diocesan Bishop and cathedral staff.

*The GDBF provided funding to cover 75% of the costs of Mission, including stipendiary and housing expenses, of the Church Army Project.

38

Notes to the financial statements

for the year ended 31 December 2024

Note 14 Staff costs cont.

The stipends of the Diocesan Bishop and Suffragan Bishops are funded by the Church Commissioners and are in the range £41,951 - £51,421 (2023 range £39,953 - £48,972). The annual rate of stipend, funded by the GDBF, paid to Archdeacons in 2024 was £41,011 (2023 £40,199).

Note 15a Group
Tangible Fixed
Assets
Cost or valuation:		 Assets under
construction
£’000		 Assets under
construction
£’000		 Leasehold
property
improvements
£’000		 Freehold
Property
£’000		 Office
Equipment
£’000		 Total
£’000
At 1 January 2024 29 239 48,341 497 49,106
Additions - - 5,057 25 5,082
Disposals - - (1,624) - (1,624)
At 31 December 2024 29
239
51,774
522
52,564
Depreciation:
At 1 January 2024 - 119 350 434 903
Charge for year - 120 29 27 176
Disposals - - - - -
At 31 December 2024 -
239
379
461
1,079
Net book value:
At 1 January 2024 29 120 47,991 63 48,203
At 31 December 2024
29
-
51,395
61
51,485

The Board has vested in it seven church buildings that have been closed under the Pastoral Measure. Of these, six are pending finding a new use and one is appropriated to @TheRock for youth mission purposes. No value is attributed to these properties.

The freehold property disposals made in 2024 relate to the sales of five clergy houses (2023: four clergy houses two surplus and two replaced), three were surplus to requirements and two replaced.

39

Notes to the financial statements

for the year ended 31 December 2024

Note 15b Parent
Tangible Fixed
Assets
Cost or valuation:		 Assets under
construction
£’000		 Assets under
construction
£’000		 Leasehold
property
improvements
£’000		 Freehold
Property
£’000		 Office
Equipment
£’000		 Total
£’000
At 1 January 2024 29 239 47,026 444 47,738
Additions - - 4,668 23 4,691
Disposals - - (1,624) - (1,624)
At 31 December 2024 29
239
50,070
467
50,805
Depreciation:
At 1 January 2024 - 119 344 412 875
Charge for year - 120 29 14 163
Disposals - - - - -
At 31 December 2024 -
239
373
426
1,038
Net book value:
At 1 January 2024 29 120 46,682 32 46,863
At 31 December 2024
29
-
49,697
41
49,767

40

Notes to the financial statements

for the year ended 31 December 2024

Note 16a Group
Fixed Asset Investments		 Properties
£’000		 Assets under
construction
£’000		 Investments
£’000		 Total
2024		 2023
£’000
£’000
Market value at 1 Jan 2024 23,265 165 29,474 52,904 40,029
Additions 22 4 - 26 23
Disposal proceeds (29,061) (91) (3,600) (32,752) (871)
Realised investment gains 13,311 - 40 13,351 301
Unrealised investment
gains/(losses)		 - - 593 593 13,422
Market Value at 31 Dec 2024 7,537
78
26,507		 34,122 52,904
Historic cost at 31 Dec 2024 15,208 17,342
Gains on investment assets
Unrealised gains/(losses)
(as above)		 - - 593 593 2,555
Realised gain on Glebe disposal 13,311 - 40 13,351 301
Glebe revaluation - - - - 10,867
Total investment gains 13,311
-
633
13,944
13,723

In 2023, Bruton Knowles undertook a formal review of one site and a desktop valuation of most of the Glebe sites with the Glebe Committee RICS members reviewing the remainder. This resulted in an increase in valuation of £10,867k. The trustees have reviewed this valuation for 2024 and concluded there is no material revaluation gain or loss to report.

During 2024, the Board completed the sale of two long standing Glebe development sites in Leckhampton and Willersey. Completion on Leckhampton was for £28.6m, payable in two instalments and Willersey was for £751k. All proceeds (net of fees and costs incurred to date) were allocated to the Diocesan Stipends Fund in accordance with the Church Property Measures.

41

Notes to the financial statements

for the year ended 31 December 2024

Note 16b Parent
Fixed Asset Investments		 Properties
£’000		 Assets under
construction
£’000		 Investments
£’000		 Total
2024		 2023
£’000
£’000
Market value at 1 Jan 2024 23,265 165 29,308 52,738 39,934
Additions 22 4 - 26 23
Disposals (29,061) (91) (3,600) (32,752) (871)
Realised gain on Glebe disposal 13,311 - 40 13,351 301
Unrealised investment
gains(losses)		 - - 574 574 13,351
Market Value at 31 Dec 2024 7,537
78
26,322		 33,937 52,738
Historic cost at 31 Dec 2024 15,512 17,646
Gains on investment assets
Unrealised gains(losses) (as above) - - 574 574 2,484
Realised gains - Glebe 13,311 - 40 13,351 301
Glebe revaluation - - - - 10,867
Total investment (losses)gains 13,311
-
614
13,925
13,652
Investments comprise: Note 16a
Group
2024
2023
£’000
£’000		 Note 16a
Group
2024
2023
£’000
£’000		 Note 16b
Parent
2024
2023
£’000
£’000		 Note 16b
Parent
2024
2023
£’000
£’000
2024 2024
£’000 £’000
(i)
Listed investments (equities)
UK Investments 2,423 2,222 2,346 2,161
Non-UK investments 16,864 18,571 16,333 18,057
Listed Investments total 19,287
20,793
18,679
20,218
(ii)
Unlisted investments
Property & other 6,780 8,032 6,567 7,809
Cash 440 649 426 631
(iii)
Church Development Agency Ltd		 - - 650 650
Investments total 26,507 29,474 26,322 29,308

42

Notes to the financial statements

for the year ended 31 December 2024

Note 16b

Fixed Asset Investments cont.

The listed investments are held in the CBF Church of England Investment Fund managed by CCLA. The allocation in (i) represents the asset allocation of the managed portfolio at 31 December 2024.

The Diocese has four wholly owned subsidiaries:

Subsidiary name Company
number		 Charity
number		 Share Capital
Church Development Agency
Limited(CDA)		 06258385 n/a £650,100
Jumping Fish Limited (JF) 06672775 n/a £1
Sportily Limited 0550991 1111077 Limited by guarantee GDBF sole member
The Charity of Ann Edwards (AEC) n/a 263956 GDBF sole trustee of Charity

The transactions and balances from the accounts for these wholly owned subsidiaries were as follows:-

Income
£		 Income
£		 Expenditure
£		 Expenditure
£		 Assets
£		 Assets
£		 Liabilities
£		 Liabilities
£		 Net assets
£		 Net assets
£
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
CDA 42k 0k 111k 14k 651k 646k (77k) (3k) 574k 643k
JF 19k 20k 12k 15k 35k 29k (28k) (24k) 7k 5k
Sportily 968k 948k 990k 885k 911k 885k (88k) (39k) 823k 846k
AEC 111k 109k 91k 114k 2,706k 2,711k (28k) (71k) 2,678k 2,640k

43

Notes to the financial statements

for the year ended 31 December 2024

Note 16c

Application of the power of total return to the Diocesan Stipends Fund

Trust for
investment		 Unapplied
Total Return		 Total
endowment
2024		 Total
endowment
2023
£’000
£’000 £’000 £’000
As at 1st January 2024:
Base value of the permanent
endowment		 12,716 - 12,716 12,092
Unapplied total return - 21,775 21,775 20,010
Total 12,716
21,775		 34,491 32,102
Movements in the year:
Investment returns – income received - 1,020 1,020 693
Additions from the sale of Glebe
property		 1,415 27,694 29,109 -
Unrealised gains for year - 499 499 2,198
Realised gains for the year - 1,472 1,472
1,991
Unapplied total return transfers
allocated to General Fund in the year		 - (6,162) (6,162) (2,493)
Unapplied total return income
allocated to General Fund in the year		 (1,020) (1,020) -
Transfer to Benefice Property to
purchase clergy housing		 (884) - (884)
Add indexation to base level of the
endowment		 440 (440) - -
Net movements in the year 971
23,063		 24,034
2,389
As at 31st December 2024:
Base value of the permanent
endowment		 13,687 - 13,687 12,716
Unapplied total return - 44,838 44,838 21,775
Valuation at 31st December 2024 13,687
44,838		 58,525 34,491

The investment power of total return permits Gloucester DBF to invest the permanently endowed Diocesan Stipends Fund (DSF) to maximise total return and apply an appropriate portion of the unapplied total return each year. Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains part of the permanent endowment.

An Unapplied Total Return Fund (UTR) of £10,800k was created on 1[st] January 2019, all of which related to the DSF permanent endowment. The base value of the permanent endowment is indexed annually based on the RPI percentage increase over the year. The annual increase in 2024 was 3.46% (2023: 5.16%).

44

Notes to the financial statements

for the year ended 31 December 2024

Note 16c

Application of the power of total return to the Diocesan Stipends Fund cont.

For the year ended 31[st] December 2024, the Board took the decision to transfer £7,182k (2023: £2,493k) which included investment income of £1,020k (2023: £693k) and allocated unapplied total return of £6.162 million (2023: £1.8 million) from the Unapplied Total Return Fund to the General Fund.

A decision was taken by the Board to fund the purchase of additional Benefice Property with a transfer of £884k from the Trust for Investment of the DSF in accordance with Church Measures.

Note 17

Stock and Work In Progress

This comprises work in progress amounting to £31k (2023: £32k) in relation to property developments being undertaken by the CDA and £9k (2023: £11k) of education materials held by Jumping Fish Limited.

Note 18a
Consolidated group debtors		 Due within one year
2024
2023
£’000
£’000		 Due within one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000
2024 2024
£’000 £’000
Prepayments and sundry debtors 15,151 1,701 - -
Staff car loans - 1 - -
Loans to parishes, Cathedral and other DBF 28 58 511 494
Debtors 15,179
1,760
511
494

Debtors include £nil (2023: £305k) due from related charities. These charities are administered by staff of the Board, but the trustees are separate from the trustees of the Board.

Note 18b
Parent company debtors		 Due within one year
2024
2023
£’000
£’000		 Due within one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000
2024 2024
£’000 £’000
Prepayments and sundry debtors 15,034 1,631 - -
Staff car loans - 1 - -
Loans to parishes, Cathedral and other DBF 28 58 511 494
The Charity of Ann Edwards 1 21 - -
Church Development Agency 58 - - -
Jumping Fish Ltd 21 18 - -
Parish Giving Scheme 44 44 - -
Debtors 15,186
1,773
511
494

45

Notes to the financial statements

for the year ended 31 December 2024

or the year ended 31 December 2024
Note 19a
Consolidated group creditors		 Due within one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000
2024 2024
£’000 £’000
Accruals and sundry creditors 867 692 - -
Taxation and social security 60 59 - -
CBF Loan (Solar Panels) 125 - - 125
Value Linked Loans (Church Commissioners) - - 349 349
Creditors 1,052
751
349
474

Value linked loans from the Church Commissioners are repayable on sale of the property to which they relate. Any capital profit or loss arising on sale of the property accrues to the Church Commissioners and the Board in proportion to the equity invested. All properties with VLLs attached have remained in chartable use and therefore have not been revalued for the purposes of the accounts in line with the Board’s accounting policies for functional assets.

Note 19b
Parent company creditors		 Due within one year
2024
2023
£’000
£’000		 Due within one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000		 Due after one year
2024
2023
£’000
£’000
2024 2024
£’000 £’000
Accruals and sundry creditors 726 593 - -
Taxation and social security 60 59 - -
CBF Loan (Solar Panels) 125 - - 125
Value Linked Loans (Church Commissioners) - - 349 349
Church Development Agency - 8 - -
Sportily - 22 - -
Creditors 911
682
349
474

Included in 'Accruals and sundry creditors' is a total of £38k (2023 - £51k) due to related charities which are administered by staff of the Board and whose trustees are separate from the trustees of the Board.

Value linked loans from the Church Commissioners are repayable on sale of the property to which they relate. Any capital profit or loss arising on sale of the property accrues to the Church Commissioners and the Board in proportion to the equity invested. All properties with VLLs attached have remained in chartable use and therefore have not been revalued for the purposes of the accounts in line with the Board’s accounting policies for functional assets.

46

Notes to the financial statements

for the year ended 31 December 2024

Note 20
Analysis of net assets by
fund:
Summary
Funds at 31 Dec 2024 are represented
by:		 General
Fund
£’000		 Designated
Funds
£’000		 Designated
Funds
£’000		 Restricted
Funds
£’000		 Restricted
Funds
£’000		 Endowment
Funds
£’000		 Endowment
Funds
£’000		 Total
£’000
Tangible fixed assets 41 2,926 1,651 46,867 51,485
Fixed asset investments 2,667 1,339 2,104 28,012 34,122
Current assets 2,425 2,927 1,513 24,786 31,651
Creditors (812) - (115) (474) (1,401)
Total Funds at 31 Dec 2024 4,321 7,192 5,153 99,191 115,857
Funds include the following unrealised
gains on investments:
Unrealised gains at 1 Jan
2024		 - - 1,490 34,072 35,562
Net gains on revaluation in year - - 70 523 593
Gains on disposals - - - (17,241) (17,241)
Unrealised gains at 31 Dec 2024 - -
1,560
17,354		 18,914
Comparative analysis of net assets by
fund:
Summary
Funds at 31 Dec 2023 are represented by:		 General
Fund
£’000		 Designated
Funds
£’000		 Restricted
Funds
£’000		 Endowment
Funds
£’000		 Total
£’000
Tangible fixed assets 152 170 1,274 46,607 48,203
Fixed asset investments 2,362 5,358 2,096 43,088 52,904
Current assets 2,641 757 1,799 872 6,069
Creditors (662) - (89) (474) (1225)
Total Funds at 31 Dec 2023 4,493 6,285 5,080 90,093 105,951

47

Notes to the financial statements

for the year ended 31 December 2024

Note 20 cont.

Funds include the following unrealised gains on investments:

Summary Summary Summary General
Fund		 General
Fund		 Designated
Funds		 Restricted
Funds		 Endowment
Funds		 Total Total
Unrealisedgains at 1 Jan 2023 - - 1,226 21,484 22,710
Net gains on revaluation in year - - 264 13,158 13,422
Gains on disposals - - - (570) (570)
Unrealised gains at 31 Dec 2023 - - 1,490
34,072		 35,562
Note 21
Designated funds		 Balance at
1 Jan 2024
£’000		 Income
£’000		 Expenditure
£’000		 Net
gains/(losses)
on assets
£’000		 Transfers*
£’000		 Balance at
31 Dec 24
£’000
Development Fund 953 6 (181) - (133) 645
GDBE Repayable Loan 500 - - - (500) -
Church Housing Association
Grant		 - - (83) - 651 568
Church Housing Association
Loan		 1,600 - - - - 1,600
Curacies for the Wider Church - - - - 1,410 1,410
Education - - (134) - 134 -
Grace Network 850 - (1,044) - 250 56
Group Activities 2,242 - 16 - (647) 1,611
Hibiscus Fund 10 - - - - 10
Hillfield House Purchase - - - - 935 935
Staffing for House Sales - - (32) - 106 74
Housing Initiative (96) - (105) - 201 -
Life projects 56 - (56) - 53 53
Pods’ Site Costs - - - - 60 60
Viney Hill Development 170 - - - - 170
Viney Hill Pods Grant - - (500) - 500 -
Total Funds at 31 Dec 2024 6,285 6 (2,119) - 3,020 7,192

48

Notes to the financial statements

for the year ended 31 December 2024

Note 21 cont.

Designated funds

The Development fund has been designated to finance Mission initiatives. Grants are awarded to Life Projects for special projects. Life Projects have been transferred to designated funds from restricted.

The Board authorised £500k as a repayable loan to support the GDBE during its initial restructuring period in 2023. No drawdown was required in 2024 and the repayable loan designation has been released due to a successful restructuring of funds in one of the GDBE’s subsidiaries.

£1.6 million has been designated for a loan approved at Bishops Council to the Church Housing Association (CHA) which will be requested in 2025. A grant of £600k was also approved by Bishops Council to the CHA. It was agreed by the trustees to retain the loan and grant in separate interest-bearing accounts and award additional grants equating to the interest received.

The trustees agreed to provide a £1.41 million fund for Curacies to the wider Church from a ‘tithe’ arising from the sale of the Glebe land.

The Education Fund brings together the Education work undertaken by GDBF with income specific to that activity, primarily from the Voluntary Schools Fund and St Matthias Trust. The Gloucester Diocesan Board of Education (GDBE) became a Charitable Incorporated Organisation in May 2022 with a transfer on 1 September 2022. The Board agreed to award an annual grant to the GDBE to assist with the costs of the Education Fund.

Grace Network is a Christian-led social Enterprise co-operative based in Brimscombe which builds community and from that new monastic community. Their main engagement and funding come from ethical businesses sharing resources and space in a different iteration of the “seven sacred spaces” model. In 2022, the Board awarded funding of £1.5m to enable this model to expand into two new locations, planned to be Cirencester and Gloucester. New premises for the first of these, located in Cirencester, was secured and opened in 2024. A further ‘repayable’ grant of £250k was awarded in 2024 to assist with this opening.

The designated fund for Group Activities relates to grants to Sportily (see note 22).

Bishops Council approved the designation of funds of £2 million to purchase and £1 million to renovate new Diocesan Board of Finance offices, Hillfield House, in 2024.

£106k was designated to assist with the disposal of excess housing stock.

The Trustees designated funds for a Housing Initiative. This offers support to the wider Church in delivering better missional and financial results through asset management by supporting a part time Housing Executive team and making time available from the Bishop of Tewkesbury and the Diocesan Secretary. This Initiative ceased in 2024.

The Life Projects fund relates to those special projects funded by the Life Development Fund.

The Viney Hill Development relates to a property owned by GDBF but used by Viney Hill Adventure Centre for charitable purposes consistent with those of the GDBF.

£60k was designated for the siting of Pods owned by the GDBF.

49

Notes to the financial statements

for the year ended 31 December 2024

Note 21 cont.

Comparative Designated
funds		 Balance at
1 Jan 2023
£’000		 Income
£’000		 Expenditure
£’000		 Net
gains/(losses)
on assets
£’000		 Transfers*
£’000		 Balance at
31 Dec 23
£’000
Development Fund 1,311 6 (181) - (183) 953
GDBE Repayable Loan - - - - 500 500
Church Housing Association
Loan		 - - - - 1,600 1,600
Education - - (131) - 131 -
Grace Network 1,250 - (400) - - 850
Group Activities 2,861 - - - (619) 2,242
Hibiscus Fund - - - - 10 10
Housing Initiative 272 - (549) - 181 (96)
Life Projects - - (84) - 140 56
Viney Hill Development 170 - - - - 170
Total Funds at 31 Dec 2023 5,864 6 (1,345) - 1,760 6,285

Note 22

Restricted funds

Restricted funds may only be used for the purposes for which the money was originally gifted or bequeathed to the Board.

The Housing for Elderly Clergy Fund derives from various bequests and is used to give assistance to retired clergy of the Diocese in difficulty with their housing requirements.

The Ordination Training Fund derives from various bequests, principally from the late Mrs. M Harries. The income is used to fund ordination training.

Bussage DPA is derived from the sale of St Augustine’s Church and is held as a separate restricted fund for the benefit of Bussage PCC.

The Diocesan Pastoral Fund is derived principally from the proceeds of sale of surplus parsonage houses as a result of pastoral reorganisations under the Pastoral Measure 1983. Under the Measure, the Fund must be used firstly in connection with expenses relating to pastoral schemes and redundant churches. To the extent that it is considered that any remaining funds are not required, or are not likely to be required, for these purposes then the funds may be applied to any general purpose of the Board. £130k was transferred to General fund in the year.

The Stratton Davis Fund arises from a bequest received in 2001 from the estate of the late Mr. David Stratton Davis. The terms of the settlement are that the fund may be used for the repair or restoration

50

Notes to the financial statements

for the year ended 31 December 2024

of churches and their fixtures and fittings in the Diocese. The Board has decided initially to use the income to make an annual grant to the Gloucestershire Historic Churches Trust.

The Bishop’s Discretionary Mission Fund derives from a donation received in 2013 and restricted to mission works of the Church of England at the Bishop of Gloucester’s discretion.

The Charity of Ann Edwards restricted funds comprise the Extraordinary Repair Fund (ERF) and the Cyclical Maintenance Fund (CMF). These funds were established in the governing instrument and are for future repairs and maintenance, with transfers being made each year.

The Sportily funds may only be used for the objects of the charity which include promoting and assisting the work, objects and purposes of the Church of England for the advancement of Christian faith, in particular (but not exclusively) by the development of specialist ministries based principally on sports and wellbeing particularly with children, young people and their families in (but not limited to) the Diocese of Gloucester.

The Ministerial Education Training fund relates to Resourcing Ministerial Education introduced in 2017.

The Quick Wins fund relates to a grant from the Archbishop’s Council for Net Zero Carbon Programme specifically for churches.

The Energy Grants were distributed to Dioceses to assist Parochial Church Councils cover the increased cost of lighting and heating of church buildings during the Winter Fuel Crisis.

Note 22
Restricted funds		 Balance at
1 Jan 2024
£’000		 Income
£’000		 Expenditure
£’000		 Net
gains/(losses)
on assets
£’000		 Transfers
£’000		 Balance at
31 Dec 24
£’000
Housing for elderly clergy 151 5 (19) 1 - 138
Ordination training 178 - (4) - - 174
Bussage DPA - 342 (8) - - 334
Diocesan pastoral fund 571 82 (64) 41 (130) 500
Stratton Davis fund 259 8 (10) 5 - 262
Bishop’s Discretionary Mission fund 30 - - - - 30
Ann Edwards Charity 1,728 111 (75) - (16) 1,748
Sportily Limited 846 284 (946) - 639 823
Ministerial Education Training 172 20 (176) - - 16
Quick Wins Grant - 24 - - - 24
Energy Grants 27 - (5) - - 22
Bishop Monk’s Horfield Trust fund 960 26 - 22 (26) 982
Other 158 260 (201) 1 (118) 100
Total Funds at 31 Dec 2024 5,080 1,162 (1,508) 70 349 5,153

51

Notes to the financial statements

for the year ended 31 December 2024

Note 22

Restricted funds cont.

The Bishop Monk Horfield Trust fund was gifted to the GDBF by a previously independent trust of that name which had managed the ancient legacy of Bishop Monk of Gloucester and Bristol. The funds received by GDBF are restricted to the funding of curates in training.

The Other Restricted funds includes a fund balance of £nil (2023: £nil) for Glebe revenue at 31 December 2024. This relates to glebe rental income less professional fees, repairs and maintenance against Glebe assets (the asset is held in the Glebe Property endowment fund – see note 23). Where excess costs create a negative balance, these will be offset against any future surplus arising on the sale of Glebe property.

Comparative Restricted funds Balance at
1 Jan 2023
£’000		 Income
£’000		 Expenditure
£’000		 Net
gains/(losses)
on assets
£’000		 Transfers
£’000		 Balance at
31 Dec 23
£’000
Housing for elderly clergy 142 4 - 5 - 151
Ordination training 206 - (1) - (27) 178
Diocesan pastoral fund 500 70 (78) 156 (77) 571
Stratton Davis fund 240 8 (10) 21 - 259
Bishop’s Discretionary Mission Fund 30 - - - - 30
Ann Edwards Charity 1,768 109 (102) - (47) 1,728
Sportily Limited - 329 (877) - 1,394 846
Ministerial Education Training 123 210 (161) - - 172
Life projects 75 - - - (75) -
Energy Grants 48 - (21) - - 27
Bishops Monk’s Horfield Trust 854 25 - 81 - 960
Other 164 241 (78) 1 (170) 158
Total Funds at 31 Dec 2023 4,150 996 (1,328) 264 998 5,080

52

Notes to the financial statements

for the year ended 31 December 2024

Note 23
Endowment funds		 Balance at
1 Jan 24
£’000		 Income
£’000		 Expenditure
£’000		 Net
gains/(losses)
on assets
£’000		 Transfers*
£’000		 Balance at
31 Dec 24
£’000
Pensions & assistance 390 - - 5 - 395
Benefice property 27,333 - (29) - 884 28,188
Diocesan stipends fund 34,491 1,472 - 499 22,063 58,525
Ann Edwards Charity 912 - - 19 - 931
Glebe property 26,967 13,351 - - (29,166) 11,152
Total funds at 31 Dec 2024 90,093 14,823 (29) 523 (6,219) 99,191

Permanent endowment funds represent money that must be permanently held as capital and may not be spent as income. Expendable endowment funds represent money that must be held as capital but may be expended when certain conditions are satisfied.

The Pensions & Assistance Fund is permanent endowment represented by a house used to provide accommodation for retired clergy, and a cash balance arising from the sale of a second house.

The Benefice Property Fund represents the value of benefice houses. These houses are owned by benefices but are recognised as assets by the Board. The fund is classified as expendable endowment as under certain conditions the value of the houses may be realised and the proceeds used as income.

The Diocesan Stipends Fund (DSF) represents ancient endowments and other gifts and legacies. The Fund is governed principally by the Diocesan Stipends Funds Measure 1953 and the Endowment and Glebe Measure 1976, as amended. The Fund consists of Clergy housing and CBF managed funds. Income generated from the Fund must be used to fund stipends. The Fund is split into “Trust for Investment” which is the permanent capital and “Unapplied Total Return” which can be applied to purposes consistent with that governing the use of income (see below).

During 2019, Bishops Council approved a total return approach to investment for the CBF managed funds of the DSF. This change in policy was to take effect from 1st January 2019. An Unapplied Total Return (UTR) of £10,800k was created on 1st January 2019, all of which related to the DSF.

The Unapplied Total Return comprises that part of the total return on the DSF which has not yet been allocated by the Board to either the General Fund or the Trust for Investment. It can be carried forward if not needed or allocated to be spent as income or reinvested in the DSF Trust for Investment in a particular year.

The value of the Trust for Investment of the DSF is preserved, by an amount equivalent to the application of RPI to the opening balance for the year being transferred from the Unapplied Total Return to the DSF Fund. For the year ended 31st December 2024, the Board took the decision to transfer £6,162k (2023: transfer £1,800k) from the Unapplied Total Return in accordance with the Diocesan Stipends Funds Measure 1953 and income of £1,020k (2023: £693k) to the General Fund (see note 16c).

A decision was taken to fund the purchase of additional Benefice Property with a transfer of £884k from the Trust for Investment of the DSF in accordance with Church Measures (see note 16c).

53

Notes to the financial statements

for the year ended 31 December 2024

Note 23

Endowment funds cont.

The Endowment Fund of the Charity of Ann Edwards represents the original endowment of the charity, comprising mainly the sale proceeds of Edwards College, the original Almshouse in South Cerney. This money may not be spent as income.

Glebe property represents glebe land previously held by incumbents but transferred to the Board under the Endowment and Glebe Measure 1976. Income derived from rents must be used to fund stipends. Proceeds of sale of glebe land must be transferred to the DSF. During 2024, the Board completed the sale of two long standing Glebe development sites in Leckhampton and Willersey. Completion on Leckhampton was for £28.6m, payable in two instalments and Willersey was for £751k. All proceeds (net of fees and costs incurred to date) were allocated to the Diocesan Stipends Fund in accordance with the Church Property Measures.

Comparative Endowment
funds		 Balance at
1 Jan 2023
£’000		 Income
£’000		 Expenditure
£’000		 Net gains/
(losses)
on assets
£’000		 Transfers*
£’000		 Balance at
31 Dec 23
£’000
Pensions & assistance 368 - - 22 - 390
Benefice property 27,278 6 (29) - 78 27,333
Diocesan stipends fund 32,102 1,189 - 2,198 (998) 34,491
Ann Edwards Charity 841 - - 71 - 912
Glebe property 16,648 301 - 10,867 (849) 26,967
Total Funds at 31 Dec 2023 77,237 1,496 (29) 13,158 (1,769) 90,093
Note 24
Financial Commitments:Operating Leases
Total commitments under non-cancellable operating leases are as
follows:-
2024 2023
Office Equipment where the lease expires: £’000 £’000
Within one year of the balance sheet date 4 6
In the second to fifth years inclusive of the balance sheet date 8 4

Note 25

Related party transactions

Mrs K Stacey, the wife of trustee, Reverend Graham Stacey, is an employee of Gloucester Diocesan Board of Finance. From the date of his appointment, she received £14k by virtue of her employment.

54

Notes to the financial statements

for the year ended 31 December 2024

Note 26
Reconciliation of Net Debt		 Balance at
1 Jan 24
£’000		 Cash Flows
£’000		 Balance at
31 Dec 24
£’000
Cash at bank and in hand 3,772 12,149 15,921
Borrowings excluding overdrafts (474) - (474)
Net Debt at 31 December 2024 3,298 12,149 15,447
Comparative reconciliation of Net Debt Balance at
1 Jan 23
£’000		 Cash Flows
£’000		 Balance at
31 Dec 23
£’000
Cash at bank and in hand 6,815 (3,043) 3,772
Borrowings excluding overdrafts (474) - (474)
Net Debt at 31 December 2023 6,341 (3,043) 3,298

Note 27

Pensions

The GDBF participates in two pension schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the GDBF and the other participating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy and the other is the Church Workers Pension Fund (CWPF) for lay staff.

The CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

  3. a. a deferred annuity section known as Pension Builder Classic, and,

  4. b. a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

For funding purposes, 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 exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.

55

Notes to the financial statements

for the year ended 31 December 2024

Note 27

Pensions cont.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2024: £34k 2023: £66k) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £34k For 2024 (2023: £66k).

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board on the advice of the Actuary.

A valuation of DBS is carried out once every three years. At the most recent valuation at 31 December 2022 there was a surplus of £73.6m.

The next actuarial valuation is due at 31 December 2025.

Since 31 December 2023, the Board has entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF.

The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2023 or 31 December 2024.

The movement in the provision is set out below:

2024 2023
£’000 £’000
Balance sheet liability at 1 January - -
Deficit contribution paid - -
Interest cost (recognised in SoFA) -
-
Remaining change to the balance sheet liability* - -
(recognised in SoFA)
Balance sheet liabilityat 31 December - -

56

Notes to the financial statements

for the year ended 31 December 2024

Note 27

Pensions cont.

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:

December
2024		 December
2023
December
2022
Discount rate*
N/A		 N/A
0.0%

The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer’s pension liabilities.

Church of England Funded Pension Scheme (CEFPS)

Gloucester DBF participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate

applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year which were £750k In 2024 (2023: £802k) plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2024, following the valuation results being agreed, the deficit contributions paid were £nil (2023: £nil).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2024, since the Scheme was fully funded.

57

Notes to the financial statements

for the year ended 31 December 2024

Note 27

Pensions cont.

The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:

% ofpensionable stipends
131 December 2021 7.1% payable from January 2021 to December 2022
31 December 2022 Nil
31 December 2023 Nil
31 December 2024 Nil

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2023 and 31 December 2024 is nil. The movement in the balance sheet liability over 2023 and over 2024 is set out in the table below.

2024 2023
£’000 £’000
Balance sheet liability at 1 January -
-
Deficit contribution paid - -
Interest cost (recognised in SoFA) - -
Remainingchange to the balance sheet liability*(recognised in SoFA) - -
Balance sheet liability at 31 December - -

The legal structure of the scheme is such that if another Responsible Body fails, Gloucester DBF could become responsible for paying a share of that Responsible Body’s pension liabilities.

Church of England Pension Builder Scheme (PBS)

The Gloucester Diocesan Board of Finance participates in the Pension Builder Scheme section (PBS) of the CWPF for eligible salaried employees who commenced employment after 1st January 2013. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

  3. a. a deferred annuity section known as Pension Builder Classic, and,

  4. b. a cash balance section known as Pension Builder 2014.

58

Notes to the financial statements

for the year ended 31 December 2024

Note 27

Pensions cont.

Pension Builder Scheme

Both sections are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns 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 to be a multi-employer 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 to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2024: £333k, 2023: £262k).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2025, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 2.7% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2024. There is no requirement for deficit payments at the current time.

The next valuation is due as at 31 December 2025.

For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Gloucester DBF could become responsible for paying a share of that employer’s pension liabilities.

59

Notes to the financial statements

for the year ended 31 December 2024

Note 28

Prior year comparative SOFA

Note 28
Prior year comparative SOFA
Income & endowments from
Donations
parish share contributions
church commissioners
grants and other donations
Charitable activities – statutory fees
and licence to occupy income
Other activities
Investments
Other		 General
fund		 Designated
funds		 Restricted
funds		 Endowment
funds		 Total
2023
£’000 £’000 £’000 £’000
£’000
6,377 - - - 6,377
63 - - - 63
188 - 579 - 767
611 - 171 - 782
117 - - - 117
832 6 233 - 1,071
12 - 13 1,496 1,521
Total 8,200 6 996 1,496 10,698
Expenditure on
Raising funds
Charitable activities		 86 - - - 86
10,614 1,345 1,328 29 13,316
Total 10,700 1,345 1,328 29 13,402
Net (expenditure)/income before
investmentgains		 (2,500) (2,704)
(1,339) (332) 1,467
Net gains on investments - - 264 13,158 13,422
Net (expenditure)/income (2,500) (1,339) (68) 14,625 10,718
Total return transfer
Net (expenditure)/income after
total return transfer
Transfers between funds
1,800 - - (1,800) -
(700) (1,339) (68) 12,825 10,718
(2,789) 1,760 998 31 -
Net movement in funds
Totalfunds broughtforward		 (3,489) 421 930 12,856 10,718
7,982 5,864 4,150 77,237 95,233
Totalfunds carriedforward 4,493 6,285 5,080 90,093 105,951

60