CARLISLE DIOCESAN BOARD OF FINANCE LIMITED FINANCIAL STATEMENTS for the YEAR ENDED 31 DECEMBER 2023 CARLISLE DIOCESE Company Registration No 39625 Registered Charity No 251977 God forAII
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31st DECEM8ER 2023 God forAII The Directors, who are also Trustees for the purposes of charity law. present their combined Directors, report, Trustees, report and Strategic report, together with the audited financial statements, for the year ended 31st December 2023. The report is separated into the following sections: Legal objects Strategic aims Activities Objectives set for the year Strategic report containing- 5.1. Activities in the year 5.2. Achlevements and performance Financial review Plans for future periods 5.5. Principal risks and uncertainties Structure, governance and management Funds held as Custodian trustee for others Reference and administrative details of the Carli51e Diocesan Board of Finance (Carlisle DBFI Auditors LEGALOBJECtS Objectlve The principal objective of the Carlisle Diocesan Board of Finance ICarli51e DBFI is to promote and assist the work, objectives and purposes of the Church of England for the advancement of the Christian religion in the Diocese of Carlisle and elsewhere by arting as the financial executive of the Diocese. Carlisle DBF acts in conjunction with the Church Commissioners. Archbishops, Council, Bishop's Council. Diocesan and Deanery Synods and Parochial Church Councils to support the work of the Church of England, particularly In the Diocese of Carlisle. The major part of Carlisle DBF'S activity is to organi5e and provide funds for the trainingi housing and stipends of clergy and other ministers Wlthin the Diocese of Carlisle and to support the activities of the other Boards, Councils and Committees of the Diocesan Synod. statutory Functions Carlisle DBF ha5 responsibility for the management o* glebe property and investments to generate income to SUPPOrt the cost of stipends. It is the Diocesan Authority for parochial and other trusts and incorporates the functions and responsibilities of the Diocesan Parsonages Board. Carlisle DBF 15 Custodian trustee in relation to PCC property15ee section 71.
CARLISLE DIOCESAN BOARD OF FINANCE LINIITED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 continued The Trustees are aware of the charity Commission's guidance on public benefit in 'The Advancement of Religion for the Public Benefit" and have had regard to it in their administration of Carlisle DBF. The Trustees believe that, by promoting the work of the Church of England in the Di0Se of Carlisle, It helps to promote the whole mission of the church (pastoral, evangelistic, social and ecumenicall more effectively, both in the Diocese a5 a whole and in its indwidual parishes, and that in doing so it provide5 a benefit to the public by. providing facilities for public worship* pastoral care and spiritual, moral and intellectual development. both for it5 members and for anyone who wishes to benefit from what the Church offers,. and promoting Christian values, and services by members of the Church in and to their communities, to the benefit of individuals and Society as a whole. STRATEGIC AIMS Carlisle D8F's strategy for achieving its objectives is to maintain the sound financial structure needed to enable it to continue supporting the clergy through the payment of stipends, managing parsonaBes and other ministerial housing and also by providing other facilities and resources in support of the ministry of both clergy and lay people in parishes acros5 the Diocese. Since 2015 Carlisle DBF has sought to allocate its resource5 in the most effective way to support the strategy "God for All. which is shared by Carlisle Diocese and the Cumbrian Methodlst, United Reformed and Salvation Army churches. In 2019 the strategy was 'refreshed' for the years ahead through a process of listening and consulting. providing new strategic focus." The refreshed strategy retains the 'God for All" heading which is an umbrella term that encapsulates the Church's offer to everyone in Cumbria of loving service and an opportunity to explore, join and grow in the Christian faith. In terms of resourcing, the strategy require5 the DBF to invest in lay and ordained ministry development. including pioneer ministers,. 5UPPOrt the mis5ior) and organisational structure of some 35 Mission Communities across the Diocese,. enable the creation of "Fresh Expressions of Church" such a5 Network Youth Churches,. support Church Schools to be effective and distinctively Christian, and oversee subsidiaries in sUPPOrt of the Mission of the Church, including a Retreat House and Conference Centre at Rydal Hall and local community Re50Jrce and Recycling retail centres through "Restore Icumbrial" as far a5 may be financially viable. The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit in reviewing the charitable company's aims and objettives and in planning future activities. In particular, the Trustees consider the planned actwities will contribute to the aims and objective5 they have set. The Trustees confirm that publlc benefit has been provided by the advancement of its objective5 AcnviTIES The key activities may be summarised as: Mission and ministry in the local church lincludes all clergy and lay training, housing, stipends and pension costs and support for locally-based ministry); Education funding (includes support services and capital expenditure support for Church of England schoo151; and Provision of a Diocesan Retreat House and Conference Centre- Contributions to the Archbishops, Council Imalnly by grant) to support the National Church.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 contSnued OBJEcnvES FOR THE YEAR As part of Carlisle DBF'S overall strategy, and subject to Annual Review, the Trustees have set the following specific objectives for the current and follgwing years- To maximise the return from Diocesan asset holdings to support the costs of Diocesan Mission and Ministry particularly in those areas that cannot fund it themselves, while retaining the overall policy of a balanced budget across the period from 2017 to 2027 inclusive. To constrain increases in income needed from pa rishes in order to allow funds to be spent on mission activity locally. To resource Diocesan needs, as determined by Oioce5an Synod and inlormed by local and National Church institutions. To invest in local ministry including greater emphasis on learning and development for lay ministry. everyday-faith, self-supporting ordained ministers in addition to the stipendiary clergy. STRATEGIC REPORT 5.1. Activities in the year 5.1.l.Specffic Activities Specific activities during 2023 in support of this strategy included.. Full reimbursement to the Church Commissioners for the direct payroll costs of stipendiary clergy together with the DBF'5 share of the training costs for Ordinands and curate5. The DBF also funded the provision of housing for all stipendiary and house for duty clergy: Funding the continued growth in outreach and evangelism throughout the Diocese as a key element of God for All (see above), including further support for the creation and Browth of Fresh Expressions of Church, innovative digital outreach and other initiatives. Learning and ministry development work to support clergy and laity, by a combination of Diocesan staff, our own Northern Mission Centre, and by the"Emmanuel Theological College. for ordination arbd reader training, seNing Dioceses in North West England. A focus upon embedding Stewardship principles to increase awarene5S Within our Ecumenical Mlsslon Communities of the mutual inter-dependence of them and their individual Parishes with the Diocese's ability to provide necessary and appropriate Anglican Ministerial Resource and Support Services, the lar8er part of which continued to be funded through an efficiently structured system of "Ministry Offer". This resulted in the biggest overall increase in Offers since the Scheme'5 inception. which it is to be hoped wi51 continue in coming years. Continued monitoring by the Investment Sub-committee. reportlng to the Finance Committee, of the mix and performance of the Diocese's investment portfolio and its professional advisors, to ensure an appropriately prudent balance of risk and reward generation associated with each class of asset. 5.1.2. Grant-making {Beneficiary-selectlon} Policy Most of the financial support from the D8F goes to fund the costs of clerical ministry in local churches. along with support services to those churches. The level of support reflects the Diotesan responsibility. as the institutional church in Cumbria, to provide for the 'cure of souls, right across the Diocese.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS. & TRUSTEES, ANNUAL REPORT 2023 continu9d Specific grants are made to the National Church to cover a proportion of its central cost515ee Note 11 to the financial statements). Grants are paid to parishes and to retired clergy and to other charitable projects which appear to the Tru5tee5 to support the furtherance of Carlisle DBF'S objects (see Note 14 to the financial statementsl. Parishes within the Diocese 3re also able to apply to the DBF for grants towards the costs of mission activities and for improvements to Church buildings. 5.1.3. Programme Related Investments Loans are made to parishes in the Diocese at a preferential rate of interest, to enable them to undertake projects which further the objects of Carlisle DBF Including Improving and maintaining their building5 (see note 24 to the financial statementsl. 5.1.4. Volunteers The Trustees recognise and are grateful for the enormous contribution that volunteer5 throughout the Diocese give of their time for the work of the Diocese In many different ways. Retired clergy also give freely of their time. Churchwardens, Parochial Church Council Treasurers, Secretaries and Safeguarding Officers continue to enable the local church to provide mi55ior) and ministry to local communities across Cumbria. The success of the ongoing God for All project continues to be conditional upon a substantial growth in self-supporting Ivolunteerl lay and ordained ministry in the future, with stipendiary clergy roles being increasingly to discern, equip and support those ministers. 5.2. Achlevements against objectivities 5.2.1. Achievements in 2023 The budget for 2023, approved by Diocesan Synod in October 2022, assumed that income from parish offers would continue to decrease in real terms from 2022 reiPtS. but that after planned cost adjustments and increases in income from investments and grants, a break-even outturn could be expected before th'e proposed designation of £250,000 towards future 'net zero, related housing Costs. In the event, the increase in Parish Offer lin cash termslof some 1.4% compared to 2022 and shortfa115 in some aspects of budgeted investment income - a result of delayed land & property sales was largely offset by.. Delays in being able to appoint clergy The deferment of some training and project activities Reduced net administrative costs due to continuing home working and use of video- conferencing Higher than budgeted income from parochial fees and investments in the Rydal and Scandale hydro-electric schemes This resulted in a small surplus of income over expenditure in the charity general fund of some £106,000, before adjusting for unrealised gains in the value of quoted Investments and transfers to other funds. The Board of Finance designated £320,000 into the Sustainability Fund to help finance future mission and ministry. as well as the £250,000 for 'net zero, housing costs.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTÈES. ANNUAL REPORT 2023 continued This is considered to be a very satisfactory financial achievement, and the hard work, patience. generosity, imagination and commitment of so many people. particularly in our local churche5, 15 gatIV appreciated by the Trustees. Rydal Hall achieved an improved outcome, albeit a reduced deficit of £65,000, due in large part to rlgorous management of cost5 and improved marketing. Forward forecasts indicate a continuing reduction in operating deficits, despite the challenges facin8 the Hospitality and Tourism industry generally. The Trustees continue to rigorously pursue a programme of rationalisation of its property portfolio, selling surplus parsonages and other under-yielding a55ets, to maximise returns from re-invested capital in support of the costs of the Diocese's Mission and Ministry. The Trustees fully recognise the challenges faced by parishes to maintain their Ministry Offer, and are very aware of, and thankful for, the sacrificial giving throughout the Diocese that make5 that Possible. 5.2.2. Operatlonal Performance The operational performance of Carlisle DBF in 2023 helped to achieve most of the strategic aims Set out above. Total expenditure on resourcing ministry and mission amounted to £7,991,000, up from £7,613,000 in 2022. Together with expenditure on education and the Diocesan retreat house at Rydal, the expenditure on charitable activities accounted for 95% of total expenditure. Expenditure on local clergy Iprimarily stipends, pension and housing), chaplains and Network Youth Church leaders accounted for 72% of the total group expenditure from general funds. Stipendiary clergy remain the bedrock of local churches, mission and ministry, supporting congregations in over 300 churches and 250 parishes. Their role extends beyond leading worship to enablin& encouraging and overseeing church members to Soln In the wider mission & ministry of the church a5 It serves communities right across Cumbria. Work continued in 2023 to establish new patterns of ministry in Ecumenical Mission Communitie5. Across the budget period 2023 to 2027, better alignment of clergy numbers and costs with the contributions from local churches toward5 those costs will help to ensure a balanced budget. Progress was however slower than planned, and with the 2023 end year position remaining close to planned long term clergy numbers, there would appear to be limited scope for further internal cost saving to offset any further falls in income. 'The backlog of maintenance and improvement of clergy property following Covid has been substantially cleared during the year, and adaptatlons to, or replacement of existing, pèrsonages to improve energy and environmental efficiency is being actively pursued. In 2023 a replacement property was purchased and adapted to become the first 'carbon neutral, vicarage in the Diocese. Total energy costs for the property are expected to be below £1,000 for a full year, benefitting the clergy occupier in addition to the environmental gains. Work began on a second property and designs were completed for a new build replacement for the vicarage in Netherton which wa5 destroyed in an arson attack. 2023 saw the continued implementation of the five year 'Reaching Deeperf project drawing down Strategic Development Funding from the Church Commissioners for investment in new pioneering mission work. The project made further progress during the year, especially through the Broh of new congregation attached to the Restore shop in Penrith, the 'Men in Sheds, project in Carlisle and pastoral sUPPOrt for individuals in Barrow.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 continued Other specific areas of work that have been funded or otherwise supported by the Diocesan Board of Finance in 2023 include: Chaplaincies, includingthose in schoo15, hospitals, hospices, workplaces, Restore shop5, 5POrts clubs. old people's homes, uniformed organisations, emergency services and the Anna Chaplaincy for older people the Northern Mission Centre, providing trainlng, SLtpport and inspiration to pioneer ministers across the North of EnElan(I Restore Wellbeing cafes provided by local churches which open spaces of welcome and inclusion in partnership with mental health teams to improve mental and emotional wellbeirbg Healthy Healing Hubs through which churches becoTne places of healing for their whole community A Christmas media campaign on radio and social media Network Youth Churches for well over a thousand teenagers across Cumbria Ecochurch awards for the Diocesan Office and churches which commit to actions to safeguard the environment anoj tackle the climate crisis The distribution of £229,000 to churches and clergy in support of funding high energy bills experienced through the 2022123 winter- this funding being made available through a grant from the Archbishops, Council. Spending on Trainlng & Mlnlstry Development activities was £566,000. This included providing fundinE for Emmanuel Training College in support of ordination and reader training, contributing £276,Cx)O towards the national costs of ordination training. implementing the Diocesan Vocatlons Strategy, trainlng stipendiary and non-stipendiary curates, lay ministry development especiallv through the second year of the 'Di5ciple5hip Projecv and leadership development in Mission Communities. In 2023 further work was undertaken in partnership with the Church Mission Society to grow the Northern Mission Centre, delivering the 'Pioneering Parlshes, Initiative, providing advice and mentoring 5UPPOrt for church members starting up new outreach and social action initiatives and continuing to deliver formal training in the Pioneer Mission Certificate. £5,000 in donations and collettions from parishes and £59,000 investment income were added to the Diocesan Growth Fund. Out of this, the highest ever value of grant5 were paid to parishes and deaneries totalling £51,000 for a range of project5 including youth and children's work, outreach through art and culture and local wellbeing. The balance on the Growth Fund, which is available to support the establishment of network youth church congregations and help parishes and deaneries initiate new work designed to achieve church growth, stood at £2,161,000 at 31 December 2023. In addition to these grants, a further 13 micro grants, each of £250 were paid to parishes wanting to experiment with new approaches to mission and outreach. These projects ranged from creating community garden to running dementia tea services, establishing a community choir and providin8 a welcoming space for chlldren and young families. In 2023 the Diocese promoted its "LED Challenge" encouraging parishes, clergy, schools and employees to switch to LED lighting. A total of over E48,000 of support was provided by the DBF across this scheme and a wider carbon net zero grants scheme, replacing over 3,000 bulbs and resulting in annual savings of over 16 tonnes of Carbon Dioxide. The Diocese partnered wlth the Dioceses of Blackburn and Manchester to secure over half a million pounds worth of funding from the Archbishop'5 Council toward5 the costs of producing decarbonisation plans for Church Schools and the 20% highest emitting churches. Thraughout the year the DBF funded the Diocesan Safeguarding team's work to develop and promote good practice in respect of the safeBuarding of children and vulnerable adults involved in local churches and church-sponsored activities. This Included participating in a pathfinder project initiated
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 continued in response to the findings of the national Indepenclent Inquiry into Child Sexual Abuse, the development and ongoing delivery of a safeguarding learning and development strategy, the adoption of Parish Safeguarding Dashboards and undertaking case work and safeguarding risk as5e5srDents. The Board for Education spent £325,000 to support education in Cumbria with its support for Church schools. The Good Shepherd Multl Academy Trust, which aims to support the provisSon of excellent education wlthln a caring and Christian ethos in academie5 in Cumbria remains of strategic importance as the debate overthe academisation of schools continues. It currently includes 12 schools. Feasibility work in respect of establishing a second Multi Academy Trust was undertaken with encouragement from the Department for Education. 'Restore (Cumbrial" our wholly owned but independently governed Subsidiary companyi continued to implement its business plan, designed to achieve a more secure and sustainable long-term fltture. by providing community support. recycling and re-use seTvices, and Christian ministry in partnership with local churches in Carlisle and Penrith. The company reported a surplus of £11,000 for the year including grant income, and this major Outreach initiative continues to benefit from the hard work of many volunteers. 2023 Saw an increase of £28,000 to £592,333 in income from the Archbishops, Couftcil's Lowest Income Communities Funding which is used to provide ministry in places that could not otherwise afford to fund it. An additional £353,000 was received in 2023 from the Archbishops, Council. being claims for fourth year of 'Strategic Development Fund, grants in relation to the 'Reaching Deeperf project, and a further £290,000 of funding, to cover ordination training, additional curate and clergv support, net-zero work and funding for our Stewardship work. The statutory fees for occasional offices conducted by the Church, which face a gradual reduction over time, amounted to £354,000. Rents received from letting parsonages during vacancies increased to £395,000 as a result of the Diocese's active approach to renting out properties wherever possible. whilst also pursuing a policy of disposal where future need to retain them is not justified and re- investment returns are potentially better. Overall total charty income Inereased by 1.8¥0. Rydal Hall Ltd is the wholly-owned subsidiary company of Carlisle DBF operating the Diocesan Conference Centre and Retreat House in South Lakeland. It experienced an improved year, incurring reduced deficit of £65,(K)O. There are elements of encouragement with growing income in most area5, and many opportunities going forward, both in terms of mission and ministry, and to improve financial stability golng forward. The Board are currently implementing an updated five-year plan covering both the commercial and mission aspects of the Hall's work. The DBF again supported the Churches Trust for Cumbria through a grant of £24,000, to enable their work to provide external support for the care. conservation and development of church buildings across Cumbria. 5.2.3. Investment Performance Investment5 are held in both restricted and unrestricted funds, managed by CCLA. Performance in 2023 improved, in line with general market recovery conditior15, Wlth the price of the CBF Investment Fund shares increasing by 9.4%,12022 decrease 11.8%), while the CBF Property Fund shares decreased by 6.IYo12022 decrease of 11.7Yol. Total unrealised gain5 on investments for the year were £1,560,000, 12022 losses £3,505,000}. These gains and105ses are notional- they do not alter the number of shares held, hence the future income streams for which these shares are held are unaffected directly by both increases and falls. The two hydro-electric plants within Cumbria in which the DBF has invested continued to perform well in 2023, generating returns of £60,000 above budget, despite significant
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS. & TRUSTEES, ANNUAL REPORT 2023 contlnued seasonal variations, and they should both provide a stron& long-term income stream for many years to come. The Bank of England's Base Rate rose to'5.25% during 2023, with the increasing CBF Dep.osit Fund rate resulting in £49,000 interest income during the year. Dividend5 received from the CBF Property Fund and Investment Fund were 6.51p and 61.79p per share respectively in the year. and the declared yields were 5.22% and 2.73% based on the year-end valuations. The total income from CBF Fund dividends for thè year rose to £934,00012022 £885,000). and investment of receipts from property sale prOed5 was prudently contlnued. Efforts continued to obtain plannirbg consent for residential development on low yielding agricultural land holdings on the edge of settlements. A number of such developments have come to market in the year. All sale proceeds from these during 2023 have been invested to generate a sustainable long- term revenue stream to fund the work of the Diocese in the future. The total return on investment- net receipts and valuation gain5 on investments as a percentage of the investment valuations at year-end, was 7.0%12022 4.9Yol following a general rise in mBrket values in the year. Average yield Inet receipts as a percentage of the investment valuations at year-endl was 3.6%12022 3.1%1. 5.2.4. External Factor5 Affecting Performance There are a number of external factors contiF)uing to affect the performance of Carlisle DBF. The fall over time in real terms in the pre-covid level of Ministry Offers made to Carlisle DBF from parishes is evidence of lower incomes in the parishes, reflecting a decline in church membership and the burden of local costs such as church repairs and energy bills. There 15 no sign that Ministry Offers will recover to pre-pandemic levels despite the resumption of normal patterns of traditional worship in local churches. This emphasises the continuing downwards trend away from time-honoured Church, albeit replaced to some extent by new forms of pioneering (but less cash-8enerativel outreach and ministry. The difficulty in filling vacancies in clergy posts has continued during the year and the Northern Province of the Church of England 15 reportedly not seen to be attractive to potential applicant5. Although this reduces financial pressure in the short term, it represents an operational concern as the leadership and pastoral work of clergy is key in recruiting and developing self-supporting lay and ordained ministry and helping the local church to continue to evolve. Financial Review 5.3.1. Review of the Financial Position The Consolidated Statement of Financial Activities1SOFAI for the year 5how5 net incoming resources of £314,00012022 £753.otKJI beftjre net gains on investment5 and other recognised Eains and losses. After revaluation adjustments, the net increase in funds amounted to £1,874,00012022: decrease E2.649,0001. Total fund balances are now £85,330,000, of which £80.256,000194.1%1 is restricted, mainly by ecclesiastical measures. and a further £2,979,0(K) has been designated for specific use by the Trustees. Overall there was a net cash inflow for the year of £1.190,00012022: outflow £648.0001. Total net current assets increased by £1,849,000 to £2,294,000, with those relating to general funds decreasing by £167,000.
CARLISLE DIOCESAN BOARD OF FINANCE LIMrrED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 continued Going Concern The Trustees are satisfied that Carlisle DBF has adequate resoLsrces to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis. 5.3.2. Reserves Poli Due to the anticipated regularlty and predictability of its Income and Costs, the Diocese policy has been to hold a level of free resenies equivalent to at least two months expenditure. The Trustees keep the PDSltion under review at their bi-monthly meetings and are currently confident that cash flows an be managed to ensure that suffficient free reserves are held to enab'le Carli51e DBF'S normal commitments to be met. 5.3.3. Investment Policles Carlisle DBF'S power to invest its funds is governed by the Memorandum and Articles of As50Clation. It exercise5 these powers having due regard to the provisions of the Trustee Act 2000 in so far as it applies to Carlisle DBF as a company. Carlisle DBF'S investment policies, which are reviewed annually* are based on two key principles: Ethical investment Carli51e DBF seeks to pursue an investment policy consistent with the values of the Christian religion. Thus, it adheres to the policy as developed by the Church Commissioners and CCLA Investment Management Ltd for their Central Board of Finance Church of Erbgland Funds. Long-tem responsibilities - Investment policy for long-term funds seeks to strike the right balance between providing an income to help the Diocese to carry out its purposes effectively in the short term and maintain and enhance the value of the invested funds so as to enable the Diocese effectively to continue to carry out its purposes in the long term. The glebe investments are held for the purpose of raising income to achieve the maximum contribution possible to clergy stipend5 on an ongoing basis. Unrestricted and restricted fund investments are invested to balance income, liquidity and the maintenance of capital. Investments Glebe property investments are held by Carlisle DBF in agricultural land, commercial and residential land and buildings. They are managed by the DBF'S agents, Penrith Farmers, & Kidd's. Walton Goodland Ltd and Savills and account for 34% of the total glebe investments. A further 63Yo of the glebe assets are invested through CCLA Investment Management Ltd in the CBF Church of England Funds or held on deposit. They ale split between holdings in equities and property via common investment funds to spread risk, and deposits. The remaininE 3% consists of shares in a hydroelettric scheme in South Cumbria. The other DBF funds are also mainly invested in CBF Church of England deposit accounts, investment and property funds, With shares also being held in a second hydro-electric scheme wlthln the grounds of the Diocesan Residential Conference Centre and Retreat at Rydal Hall, South Lakes.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS. & TRUSTEES, ANNUAL REPORT 2023 continued Other Funds Funds which may be needed for working capital in the short term are held a5 deposits with the Central Board of Finance. The performance of all the DBF'S investments is monitored regularly by the Trustees at their bi-monthly board meeting5, and by the Investment Sub-committee. 5.3.4. Remuneration Policv The Board operates a set salary scale and employees are placed on this with regard to benchmarking against comparable roles in this and other dioceses and the extemal employment market. Cost of living increases are determined as part of the process of setting the budget which 15 approved by the Finance Committee and the Members. Remuneration of higher-paid employees is determlned In consultation between the Chair of the Finance Committee, the Dlocesan Secretary and the Head of HR & Goverr)ance. 5.4 Plans for Future Period5 The DBF'5 Qngoing objective is to resource Diocesan needs, as determined by Synod and informed by local and national Church institutions and in particular to invest to meet the objectives set out in the Diocese's updated "God for All" Strategy. A new Diocesan Development Plan forthe period beyond 2023, is integrated into resource and budget planning for the period 2023-2027, which wa5 approved by Diocesan Synod in October 2022 and which 15 reviewed annually at Diocesan Synod. Principal Ri5k5 and Uncertaintles The Trustees confirm that the major risks, to which Carlisle DBF and its subsidiary companie5 are exposed are continually reviewed and that systems and procedures have been established to manage those risks. The principal risks and uncertainties which face Carlisle DBF relate to.. the reliability and timing of the income it receives from local churches which is voluntary in nature, Ministry Offer accounting for 57% of total charity general fund income,. investment performance. particularly in respert of commercial property,. clergy numbers may vary above or below assumptions with consequential impact on ministry and costs,. and the longer term financial effects of inflation and deJnography upon core income streams and operating costs. The principal risks are reviewed regularly by the Trustees and, where necessary, further information and data are gathered to enable a more detailed examination of the risks to be made and decisions taken on the basis of the probability and likely impact of the risks occurring. We encourage good stewardship in the local church and the work of the Stewardship Team is seen as key way in which the Diocese can support parishes and mission communities in raising income locally which, in turn, will empowerthem to identify the optimum affordable deployment of available trained ministry resource both lay and ordained. Carlisle DBF provides its Trustees, officers and employees with Indemnity Insurance against any liabilities that might arise during the provision of services operated under the authority of the Diocesan Bishop and Synod. io
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 continued Structure, Governance and Management Organlsational Structure The Diocese of Carlisle was founded in 1133. It covers an area of 2,480 square miles and includes all of Cumbria, except for small areas in the east of the county which are included in the neighbouring Diocese of Newcastle. The overall population of the Diocese is around 500.000. The Diocese is one of the 42 English dioceses of the Church of England which is organised as two provinces. The Diocese of Carlisle is part of the Northern Province led by the Archbishop of York. The Southern Province is led by the Archbishop of Canterbury. The Diocese of Carlisle was led (until retirement in August 20231 by the Diocesan Bishop. the Rt Revd Jame5 Newcome. Since that date, leadershlp has been undertaken, la5 Acting Diocesan Bishop), bv the suffragan Bishop of Penrith, the Rt Revd Rob Saner-Haigh. The Diocese is arranged into three Archdeaconries= Carllsle covering the northern and eastern part with 4 deaneries, West Cumberland in the western part with 3 deaneries and We5tmorland and Furness in the southern part with 4 deaneries. In total there are 228 parishes198 beneficesl with 76 full-time equivalent stipendiary parochial clergy and 8 serving in house for duties POSt5. Together with 38 non-stipendiary ministers, 89 readers. 67 local lay ministers and many other retired clergy and lay members they provide ministry in 325 churches in the Diocese. The Diocese is in Covenanted Partnership with three other denominations Methodist. United Reformed Church and Salvation Army. With those denominations the Diocese 15 establishing ecumenical Mission Communities, groups of churches that collaborate over mission and share resources, increasingly including ministry and buildings. In the course of 2023, a number of church buildings were put forward for closure at the request of their local Parochial Church Councils. Diocesan Governance Diocesan Synod The Diocese is governed by Standing Orders approved in 1969 and as subsequently amended. Its statutory governing body is the Diocesan Synod, which is an elected body with representation from all parts of the Diocese. Membership consists of Bishops and Archdeacons lex officio members), clergy members elerted by the Houses of Clergy in Deanery Synods, lay persons elerted by the House5 of Laity in Deanery Synods, up to five person5 who may be co-opted by each of the Houses of CleY or Laity and a maximum of ten members nomini7ted by the Diocesan Bishop. The Diocesan Synod normally meets three times a year. Its role is to: onsider, and make decisions on, matters affectinE the Church of England in the Diocese; act as a forum for debate of Christian opinion on matters of religious or public interest; advise the Bishop where requested; deal with matters ferred by General Synod: provide for the financing of the Diocese by approving the Diocesan Budget. Deanery Synods Each deanery in the Diocese has its own Deanery Synod which has two houses. laity and clergy. Its role is to.. respond to requests from General Synod; give effect to the decisions made by the Diocesan Synod,.
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 ontinued consider matters affecting the Church of England by drawing together the views of the parishes within the deanery: act as a channel of communicatior) to expre55 the views of parishes to Diocesan Synod and thence to General Synod,. raise with Diocesan Synod such matters as it considers appropriate; and elect members of the deanery to the Diocesan Synod and of the Diocese to General Synod. Bishop'5 Council and Standing Committee Bishop's Council consists of 9 ex officio members, including the Diocesan and Suffragan Bishop and the three Archdeacons, three clergy elected by the House of Clergy from among their number and slx lay persons elected by the members of the House of Laity. A maximum of three members may also be nominated by the Diocesan Bishop. Under the constitution of the Diocesan Synod, Bishop's Council has the following functions.. To plan the business of the Synod, to prepare the agenda for its se55ions and to circulate to members information about matters for discussion Idelegated to the Steering Committeel; To initiate proposals for action by the Synod and to advise it on matters of policy,. To advise the President of Synod on any matter,. Subject to the directions of the Synod, to transact the business of the Synod when the Synod is not in session- Subject to the directions of the Synod. to appoint members of committees or nominate individuals for election to committees,. and To carry out such funrtions as the Synod may delegate to it. Carlisle Diocesan Board of Finance The company, C3rli51e Diocesan Board Df Finance Ltd ICarli51e DBFI, was formed to manage the financial affairs and hold the assets of the Diocese. It was incorporated on 22n¢ September 1893 as a charitable company limited by membership guarantees INO. 39625} and its governing documents are the Memorandum and Articles of Association. Carlisle DBF has beerb registered with the Charity Commission since I. May 1967 (No. 2519771. The Memorandum and Articles of Association have been altered by Special Resolutions the latest of which were passed on 15 June 2021, 1" May 2018 and 12, July 2006. From Ilth November 2006 every memberof Diocesan Synod is a memberofcarlisle D8Fforcompany law purposes, unless they are excluded by reason of being appointed to any salaried office of the Company or any office of the Company paid by fees. Each member has a person81 liability limited to £1 under their guarantee as company rnembers in the event of its being wound up. Trustees From 1st January 2007 the Bishop of Carlisle and the three Archdeacons have served as ex-offlcio Directors of the Company. A further five Directors are elerted by the members of Carlisle DBF and the Directors have power to Co-opt up to another four Directors. Mr Jim Johnson served as Chair throughout the year, and Mrs Susan Wigley Ito Sept 20231 and Mr Nigel Robson (from Sept 20231 served as Vice Chair during the year. All the Directors are also the Trustees and, when newly appointed, are given induction training. All Trustees are offered ongoing trainin& a5 appropriate. 12
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 continued Trustees, Responsibilities The Trustees (who are also the Directors of Carlisle Diocesan Board of Finance Limited forthe purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance wlth applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statement5 for each financial year which sive a true and fairview of the state of affalrs of the charitable company and the group and of the incoming resources and application of resources, includin8 the income and expenditure of the charitable group. for that year. In preparing these financial statements the Trustees are required to.. Select suitable accounting policies and apply them consistently: ObseNe the methods and principles in the Charities SORP,. Make judgements ènd estimates that are reasonable and prudent,. State whether applicable UK actountin8 Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. T.he Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguardlng the corporate and trust assets of the charitable company and group enSLJring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularwties. The Trustees are also responsible for the maintenance and integrwty of the corporate and financial information included on the charitable Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 6A Decision-making Structure Diocesan Synod has delegated the following functions to Carlisle DBF= Management of the funds and property of the Dlocese- Preparation of annual estimates of expenditure: Advising on action needed to raise the income necessary to finance expenditure; Oversight of expenditure by bodies in receipt of Diocesan Synod's funds against estlmates of expenditure approved by Diocesan Synod,. Advising Diocesan Synod of the financial aspects of its policy and on any other matters referred or delegated to it by Diocesan Synod. Flnance Committee The Trustees met as the Finance Committee of Carlisle DBF 6 times during the year. At these meetlngs they received regular reports from the officers of the DBF and considered any matters for which they are responsible. 13
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 continued The number of meetings land proportion of those eligible for attendance) that each Trustee attended in 2023 was.. The Rt Revd James Newcome lex officiol The Ven Richard Pratt lex officiol 2150%) (Retired 31 August 20231 I IIOO%I IAppointed 22 November 2023, Retired 31 March 20241 The Ven Verr)on Ross The Ven Stewart Fyfè Mr Derek Bradley Miss Janet Busk Mr Rob Cook Mr David Dalgoutte Mrjohn Edwards Mr Jim Johnson Mr Nigel Robson Mrs Susan Wigley lex officio} lex officiol lelectedl lelectedl lelectedl Ico-optedl Ico-optedl lelectedl Ico-optedl lelectedl 5183%) 3160%) IAppointed l January 20231 61100%) 61100%) 61100%) 5183%) 5183%) 61100%1 5183%) 3175%) IRetired 15 September 20231 Since the retirement of The Rt Revd James Newcome as Bishop of Carlisle, The Rt Revd Rob Saner- Haigh (Suffragan Bishop of Penrithl has been in attendance at Board meetings- however he is not a member of the Trustee Board. The Trustees have delegated responsibility for the day-to-day management of the company to the Diocesan Secretary who is supported by a small team of staff. Committee Structure There are a number of statutory Diocesan Synod committees that, although not Sub-committees of Carlisle DBF, can influence its operations-. Carlisle Diocesan Board of Education has responsibility for 104 Church Schools across the Diocese, provides pastoral and professional support to all its schools and has a particular commltment to enhancing the quality of provision for religious education. collective worship and the spiritual. moral, social, and cultural development of all pupils. The Parsonages Board is responsible for determining policy concerning the management of p3r50nage houses in each benefice, including setting the policy for buying, repairingtr maintaining and disposing of all parsonage houses, team vic3rage5 and houses owned by Carlisle DBF. In the Di0Se the Carlisle DBF is designated as the Diocesan Parsonages Board. A number of Its funttions a delegated to Archdeaconry 5ub-Committees under the temis of a scheme passed by Diocesan Synod on 12 October 2013. The Diocesan Pastoral Committee is responsible for the task of approving pastoral reorgani5ation, taking account of available clergy numbers and making use of new patterns of ministry. It also has responsibility for finding appropriate alternative uses for churches which have closed. Most of its functions are delegated to Archdeaconry sub COTnmittees. The Diocesan Advisory Committee advises on matter5 affecting churches and places of worshlp such as the granting of faculties, architecture, archaeology, art and the history of places of worship, the use nd care of places of worship and their contents and the care of churchyard5. In 2023 the DAC dealt with 39 of faculty applications from local churches. 14
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES. ANNUAL REPORT 2023 continuBd Carli51e Diocesan Board of Patronage is constituted under the provisions of the Patronage IBenefice51 Measure 1986 and is sole patron or joint patron of a number of benefices. Related Parties General Synod Carlisle DBF has to comply with Measures passed by the General Synod of the Church of England. General Synod is the le8islative and deliberative body at national level. making decisions on matters of doctrine, the holding of church seNices and relations with other churches. General Synod passes measures which, if accepted by Parliament, have the effect of Acts of Parliament. It is made up of three groups or houses of members- the House5 of Bishops, of Clergy and of Laityi and meets in London or York at least twice annually to consider legislation for the broader good of the Church. Archbishops, Councll The Archbishops, Council was established in 1999 to co-ordinate, promote, aid and further the mi55i0n of the Church of England. Its task is to give a clear sense of direction to the Church nationally and support the Church locally by acting as a policy discussion forum. Carlisle DBF is required to make certain annual payments to the Archbishops, Council towards the running Costs of the National Church according to a formula agreed by General Synod. Church Commi55ioner5 The Church Commissioners manage the historic a55et5 of the Church of England, fundlng clergy pensions for service priorto 1998. The payroll costs of episcopal leadership through the Diocesan and Suffragan Bishops are met by the Church Commissioners, along with the housing costs of the Diocesan Bishop. Further grants are also paid towards the staffing costs of cathedra15. The Church Commissioners a150 make a number of grant5 to the Archbishops, Council including LDW Income Communities funding for ministry in poorer dioceses and parishes and Strategic Development Fund and Diocesan Investment Programme grants for new mission initiative5. Although Carlisle DBF is responsible for the funding of its clergy stipend costs, the national clergy payroll is administered by the Church Commissioners. Carlisle DBF relrnburses the Church Commissioners monthly for the costs of stipendiary clergy deployed in the Diocese. Church of England Pensions Board The Church of England Pensions Board was established by the Church Assembly in 1926 as the Church of En8land'5 pensions, authority and to administer the pension scheme for the clergy. Subsequently it has been given wider powers, in respect of discretionary benefits and accommodation both for those retired from stipendiary ministry and for widows and widowers of those who have served in that ministry, and to administer pension schemes for lay employees of Church organisations. The Pensions Board, which reports to the General Synod, is trustee of a number of pension funds and charitable funds. whilst the Church has drawn together under the Pensions Board its central responsibilities for retirement welfare, the Pensions Board works in close cooperation both with the Archbishops, Council and with the Church Commissioners. 15
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 continued Carlisle DBF contributes monthly to the Pensions Board for both the clergy and the lay pension schemes. The Cathedral The Cathedral Church of the Holy and Undivided Trinity is the mother church of the Diocese of Carlisle and legally is constituted as a separate charity currentty exempt from Charity Commission registratlon and supervision. Copies of its Trustees, report and financial statements may be obtained from the Cathedral Office, 7 The Abbey, Carlisle, CA3 8TZ. Parishes and Parochial Church Councils {PCCsl The PCC is the elected governing body of an individual parish which broadly is the Smallest pastoral area in the Church of England. Each PCC is an independent charity and m05t are currently exempt from registration with the Charity Commission. However, under the terms of the Charities Act 2011 those PCCS whose gross income for the year is above £lOO.OtK) are required to register. PCCS are able to influence the decision-making within Carlisle DBF and at Diocesan Synod level through representations and input of their Deanery Synods. The main income of Carlisle DBF is the contribution, by way of the Ministry offer. from the 228 parishes of the Diocese,. which system has been based on voluntary offers made by Mission Comrllunities and parishes towards the c05t5 of wnini5try incurred throughout the whole of the Diocese of Carlisle. Except where Shown, the transactions of PCCS do not form part of these financial statement5. Financial statements of an individual PCC can be obtained from the relevant pcc treasurer. Subsidiary Undertakings Rydal Hall Limited Carlisle DBF is responsible for the operation of the Diocesan Conference Centre and Retreat House, Rydal Hall. This is achieved through Rydal Hall Limited. a wholty owned Subsidiary charity of Carlisle DBF. The activities of the subsidiary are'included in the consolidated financial statements. Restore (Cumbria) Restore Icumbrial is a registered charity which operates a charity shop and resource network in North Cumbria, a5 part of the Diocese's Outreach initiatives. The DBF is the sole member of the charity. Rydal Hydro Limited Carlisle DBF owns 50% of the Issued share capital of Rydal Hydro Limited, with Ellergreen Hydro Limited and Gilkes Hydro Limited the other 50%. The joint venture company has constructed a hydroelectricity generating plant within the grounds of Rydal Hall Limited providing a renewable source of electricity for Rydal Hall and the surroundinE area as well as providing a significant return on the DBF'S investment. 16
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS, & TRUSTEES, ANNUAL REPORT 2023 contlnued Other Connected Companies Cadisle DBF together with four other dioceses from the North West of Englarbd and with York Diocese have equal shares in DBE Services Limited, a company formed to provide various services to schools. These include inspertions, teaching and curriculum 5UPPOrt, administrative setvices, buildin& equlpment and construction support and insurance. DBE Services Limited has several employees with other staff employed by the participating dioceses who invoice the company for their time. The profits of DBE Services Limited are distributed to the shareholders by means of gift aid donation5. The six North West Dioceses are sponsors of Emmanuel College which trains ordinands for mlnistry in the Church of England across and beyond the region. The Diocesan Board of Finance 15 a Corporate Member of the College. Funds Held as Custodian Trustee for Others Carlisle D8F is required by Measure to be custodian trustee in relation to PCC property. Carlisle DBF also holds funds on behalf of Church of England schools in the Diocese. All a55ets held as custodian trustee are kept independently from the Company's own assets and their details are recorded in separate trust ledger. The assets are mainly invested through CCLA Investment Management Limited in their range of CBF Church of England Funds or on deposit with major UK clearing banks. At 31 December 2023 the total value of these funds was £11.150,000. Reference and Administrative Details of the Carlisle Diocesan Board of Finance In accordarbce with the Companie5 Act 2006 and the Statement of Recommended Practice: Accounting and Reporting by Charities issued in 20151SORP 20151, the Directors (for the purposes of company lawl and the Trustees (for the purposes of tharity lawl during the year and as at the date of signing follow.. Ex-officio Director5 The Right Reverend James Newcome, Bishop of Carlisle (retired 30 September 20231 The Venerable Dr Richard Pratt, Archdeacon of Carlisle (Appointed 22 November 2023, Retired 31 March 20241 The Venerable Vernon Ross, Archdeacon of Westmorland and Furness The Venerable Stewart FyFe, Archdeacon of West Cumberland Elected b the Member5 Derek Bradley Janet Busk Robcook Jim Johnson (Chairl Susan Wigley (Vice Chair, retired 15 September 20231 Co-o ed b the Directors David Dalgoutte John Edwards Nigel Rob50n 17
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED DIRECTORS. & TRUSTEES, ANNUAL REPORT 2023 continued The Right Reverend Rob Saner-Haigh, Suffragan Bishop of Penrith, is not a Trustee Director. but plays an active role in Board meetings while he covers for the vacant Bishop of Carlisle position. Secretary Head of Finance Director of Educatlon Mr Derek Hurton Mr Ric Jaques Mrs Charlotte Tudway Registered Office Diocesan Church House. 19-24 Friargate, Penrith, CAII 7XR Telephone 01768 807777 Webslte e-mail www.carlislediocese.or .uk uiries carlislediocese.or en Company registration number Charity registration nurnber 39625 IEngland & Wales) 251977 Audltors Dodd & Co Limited, FIFTEEN Rosehill, Carlisle, CAI 2RW Banker5 HSBC plc, City Office, 29 English Street, Carlisle, CA3 8JT Legal Adviser Ms Laura Pea Sintons, The Cube, Barrack Road, Newcastle Upon Tyne, NE4 6DB Investment Advisers CCL4 Investment Management Ltd, Senator House 85 Queen Victoria Street London EC4V 4ET Glebe Property Agents Penrith Farmers, & Kidd's plc, Skirsgill. Penrith. CAII ODN Savill5, 64 Warwick Road, Carlisle CAI IDR Walton Goodland Ltd, 10 Lowther Street, Carlisle. CA3 8DA 18
CARLISLE DIOCESAN BOARD OF FINANCE LiifffED The TteeS as a Board confirm that to the best of their knowled8e there is no information relevant to the audit of which the auditors are unaware. In addition, the Trustees have taken all reasonable steps to ensure that they themselves are aware of all. relevant audit infomiation and that thi5 formation has been communicated to the auditors. A resolution to reappoint Dodd & Co Llmli@d asauditorstothe companyand to authorisetheTrustees to fix their remuneration will be proposed at the Annual General Meeting. The Directors. and Tri1Stee annual rewrt, together with the strntegic report which is incorporated into the Directorg and Trusteeg annual rerAlrt have been approved by the Directorsnrustee5 and Sig on their behalf bv: Johnson Dirertor and Trustee 9" July 2024 19
Independent audltor's report to the members of Carlisle Diocesan Board of Finance Limitod Oplnton We have audited the fancial slalements of Carfisle Diocesan Board of Finan LAmited] Cthe charitsble company) for the yeaF ended 31 December 2023 which comprise Gonsolidated Stateinenl of Nnahcial Activities, Charity Stslemenl of Financial Actwiiles, Consolidated Summary Income and Exp2nditure AcGourrt. Gon501id2ted Balance Sheet, Charsty Balance Sheet, Consoliflaled Cash Flow Statement and notes to the financial slatements.Jnduding signfficant 8wounling policies. Th8 finandal TepoTlino framework that has baen applied in thr prepar8lion is applicable 18w and Unlled Kingdom Accounting SlaTKlards, including FRs 1 2 The"Finanual R8Wrttng St8ndard applic8blè in the UK8nd Republlc of Aland (UnTted Kingdom Generally Aepted AccDunting Prnclic81. Sn our opinlon. the finonual statements= ' give a true and tair vletr4 of the state of the group's and parent charfEable companys xff8irs as at 31 .DrnbeT 2023 and of its incomir)g resources and appli¢alK)n of rèsource5 forthe yearthen ended: • have been propety prepared in accord8n wlh Untted lfjngdom Geneth Aptsd AcUting Pr8dica" and . have been prepared In acclJrdanr with the requirements ofthe Companie8 Act 2006. Ba515 for opinion We conduGted OUT audlt In accordance Irrtemalional Standards on Auditing (UK) IISAS IUK)) and applicAble law. Our respK)nsibililie5 undeF those 5fandards aTe fvTther described in the AuditoPs spOn"blI for thg audlt of the fin8ncft81ststements section of our report. We ate Irependen1 ofthe Gh8titable company tp 8(xordanr£with th8 8thi¢xl rèquirernents th tElevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard. and the provisions available for small entities, arHI we have fvlfilted Qui DthBr ethi¢1 respon8ibilittes in accordance wth Ihese requirements. We believe that Ihe audit evidence we have obtained is suffirAent and appropriate to provide a bask8 for our opinton. Conclusions relating to golng concern In audillng the finandal statements, wo have conduded that the trusle8s' e of the going concem.b8sls of accounting in the ptsparation of the financial statements is ppproprfate. Based on the work we have perforned. we have nol identified any material unrrt8lnlies at1Trg to ents or conditions that, individu81ty.orcollectively. may (st significantdoubtoTrthecharitable (x)mp8ny's abililyto contirbue as a yotng concern for a pBtHJd of at least 12 months from when Ihe an(la1 statements arè authiSed for issue. Our responsilIbe$ and the SpOnsibl11t1es of the tnjstees with sF1Cl to going (x)rwm a¥8 descnbed in Ihe relevanttse¢tions of this report. other IOrniatiOn The other infotwnation comprises thè infomialion Induded in the annual report, Induding the Irust¢es' repor(. other th8nthefinaTraalstatemBnts and our auditorfs rnportthereon. Thetrustees are SponSfo1efoTthe othgr infrjmation contsined thin the anrIU r8porL Our oplftion on the financial statements does not cover the other infom)atton and. ex¢ept lo the extent Dthen¥lse explicttly ststed In our report, we do rK>t 8xpress any forn of 8ssiirance trndusion th8reon. Our responsibility is to read the other Information and, in doing so, consider whether the other infomiation is rnate>i811y inrJ)nsist8nt with the fin8ncial staleTllgrts or our kntsedge oblalned in the course of the audit oi 0thgrwi49 appea lo be maier£ally misslatod. If we"identify such mateiial iNnSiStenc1es or apparftnt matert81 misstrdtnÈnts. we a required to detènmine wheth&r this give5 rtse to a material missts18ment In the financial 3tstements themsefvES. Sf, based on the work we have perfOed, wg condude that there is a mateFial mis5talement of t"S other infoTrn8tion. we arg to rewrt thatfacL We have nothing to rert this r8gard. 20
Opinions on other matters pres¢ribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of thè audit.. . the information gwen in Ihg trustees, report, which indudes the directors, report and the strategic report prepad forthe purposes of Company law, forthe finanaal year fDr which the finan1 statements are prepared is consistent th the ffinancial slalements," and • the ijirectors. report and the Strateg rewrt included within the trustees, report ha8 been prepad Sn accordance with applicable legal requirernents. Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environnlent obtained in the wurse of the audit, we have not identified rnaterial misstatements in the directors, report induded wrthin the trustees. report. Wè have nothing to report in respect of the follwng matters in relation lo which the Companie5 Aci 2006 requires us to port to you if, in our opinion= adequate and proper accounting records have not been kept, or returns adequate for our audit have not been receNed from branches nol vllsited by us. or . the financial ststernenls a not in agreement with the accounung records and retums.. or certain disclosures of trustees, Temur*r8tion specifie¢J by law are not m8de,' or ' we have not recefved all the infomalion and explanab.ons we require for our audit Responsibillties of trustees As explained more fvlly in the trustees, responsibilities statement, the trustees (who are also the diredors of the charitable Company foi the purposes of company lawl are responsible forlhe preparation of the financi81 statements and for being satlsf5ed that they give a true and fair view, and for Such inlemal control as the trustees determine is ecessary to enable the prepatation of fInancl statements th81 are free Irom material misstslemenl, whether due to fraud or errol. In preparing the financial statements, the trustees are responsible for assèssing the company's ability to conb.nue as a going concem, disdosing, as applicable. mallers related to going concem and using the going concèm ba51S of accounting unless the Iruslees aÉther intend to liquidate the cornpany orto cease operations, or have no realistic aliernative but to do so. Auditor's responsibilili¢"s for the audlt of the flnancial statements Our objectiV8s arelo obtain reasonable assurance about whetherthe financial statements as a whole are free from rnalerial misslalement, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurancè is a high levd of assurance bul is not a guarantee that an audit conducted in aecordance with ISAS IUK} will saYS detect a material misststement when it exists. Misstatements can arise from fraud or error and are considered mateiial rf, individually or in the aggiegate. tt)ey could reasonaNy be oxpected to influencE the economic déusions of users taken on the basis of Ihe5e financial statements. Irregularities, including fraud, are instances Df non-rA)mpliance with laws and regulations. We design pro¢edures in line wilh our lesponsibilit$, outlined above. to delecl material lS5tateMentS in respect of irregularities, including fraud. The extent lowhich ourprocedures are capae of deltrcting irregularits'es. including fraud is d8tsiled below.. In identifying and assessing risks of material misstatement in respect trf Irregularities. including fraud and non- ¢gtnpliance with laws arKI regulations, we consldered the following. 21
the nature of the industry and sector. Gontrol enviionment and charilable company's performancè,. results of our enquiries ol rnanagemenl about their own identiffication and assessment of the nsks of irregularities., any matters we identified having obtsined and revSewed the charitable company's documentslion gfth8ir policies and procedures relating to.. identifying. evaluating and complying with laws and regulations and whether they wère aware of any instance5 of non-Gornpliallce", detecting and rEsponding to the risks of fraud and whether they have knowledge of any actual, suspecled or 8lleged fraud., the intemal controls established to mitsgate risks of fraud or non-compliance with lawg and regulations., the matleis discussed among the audit engagement tsam and involving relevant intemal spec181ists, including pensions regarding how and where fraud might occur in tha ffinancial statements and any potential indicators of fraud. As a result of these proceilures, we wnsidereil the opporiunitles and incentives that rnay 8xi5t within th& organisation for fraud and identified the greatest potential for fraud to be in relation to revenue re¢ognttion and management override which, in common wilh 8118udts under ISAS (UK), we are required to perform spe¢ifi¢ procedures to respond lo this risk. We also obtained an understanding of the legal and regulatory fr8mework thatthe charitable company oper8les in, focusing on prDV15ions of those laws and iegulations that had a direct effect on the deleminalion of material amounts and disclosures in the finanual statements. The key laws and gUlatIonS we considered in this context included the UK Companies Act, Charitie5 Act, pensions legislation and tax legislation. As a result of perfoming the above, in response to the risks identffied, we did not idenlfy any key audit matters related lo the pot8nlial risk of fiaud or norKomplIan with law5 and iegulab'ons. In addition lo the abovts. our procerlures to respond to risks identified induded the foll¢)wing.' reviewing the financial statement disclosures and testing to supporting documentation lo asses compliance with provIsn$ ol relevant lawg and regulations described as having a direct effect on the financial staloments., enquiring of rnanagefflent concerning actual and potenlial litigation and daims". performing analytical procedures to identfy any unusual or unexpeded relationships that m8y indicate risks of rnaterial misstalemenl due to fraud". reading minutes of me81ing5 of thosè charged with goverrnCe. reviewing correspondence with HMRC.. and in addressing Ihe Nsk of fraud through managem6nt override of controls, testing the approprialon&ss of journal entries and ofher lJustMents,. assessing whether the judgements rnade in making accounting estimates are indicative of a potential bias., and evaluating the business ration3le of any significant Iransaclion5 that ale unusual or out5Fde ihe nomal course of busines5. We also communicated relevant idenliffied laws 8nd regulations and potential fraud risks lo all engagetnenl 10am members and remained alert lo any indication5 of fiaud or norh-compliance with laws and regulaticlns throughoul the audrt. A lurthei description of our responsibilities is available on the Financial Reporiing Council's website at.. vMw.frc.or .uklauditorsres nsibilities. This description forms part of our a1tOrfS report. 22
Usg of our repori This report is made solely to the charitablè compaAy'S members. as a bpdy, in aordan wlth Chapter 3 of Part IS of the Companies Act 20CE. Our audit work has been undertaken so that we might state to the tharilable company's members those matters we are requlred to stateto thern in an audilorfs report and for no other purpose. To the fullest extentpermitied bylaw, we do not accept orassume responsibility lo anyone olherthan the charitable Gompany and the ¢haritable company's members as a body. for our audit work, for this report, or for the opinions wè have fomied. F8ye Amistrong (Senior Statutory Audito For and on behalf of Dodd & Co Audit Limited, Stalulory Auditor FIEEN Rosehill Montgomery W8y Rosehill Estate CARLISLE CA12RW zlgli4 23
CARUSLE DIOCESAN BOARD OF FINANCE UMITED CONSOLIDATED STATEMENT OF FINANCIAL AcnviTIES Forthe yearended 31 December 2923 Unrestrirtedfunds General Deslsnated Note £'QOO £'DDD Restrlrted Endowment Funds Funds £'ooo £'ooo Total fund5 2023 202Z £'ooo £'ooo Income and endowment5from Donatlons Parlsh contrlbutlons Archbi5hDp'5 Councll Other donatlons Charllable actlties Fee5 & chaplaincy income Rydzl Hall Sales of good5 & 5ervlces other actIvIt$ Investrnents Other sources 4,180 945 128 4,180 1,235 185 4.124 1,366 201 290 13 521 521 1,236 345 395 1,749 695 583 798 764 345 1,533 626 15 1,236 305 40 395 1,153 65 527 172 523 Totsl 7,362 1,650 I,(M)2 527 10,541 10,340 Expend5tur¢ Raisingfund5 Charttable activit*5 RÈsourcing ministry & mission Educatlon Rydal Hall Other purposes 174 12 186. 207 6,745 325 12 446 800 .51 7,991 ' 376 1.373. 301 7,613 310 1,445 12 15 io 1,361 299 Total 12 7,256 1,809 863 299 10,227 9,587 Net 5ncomelleKpendliuTel before lrivèsttnentgalns 106 11591 139 228 314 753 Net galnslllosse51 on investments 20 178 542 820 1,560 13,5051 Net Inwméllexpendlturel 126 19 681 1.048 1,874 12,7521 Transfers bthveenfund5 22. 11971 570 11041 12691 Other recognisEd¥aiAs/llo$sesl fjalns1llossesl on revzluation of flxed assets A¢tuarlal galns/llos5esl on defined beneflt pÈnsion sahernes 42 61 Net mo¥ement In funds 1711 589 577 779 1,874 12,6491 Total funds brought forward 2,166 2,390 22,789 56,111 83.456 86,105 T¢)tsl funds carrled forward 2,095 2.979 23,366 56,890 85.330 83,456 All actlvktle5 dertve frorn continuinK artlvltles. The notes on pages 32 to 65 form p3rt of the flnanclal Statements. 24
CARLISLE DIOCESAN BOARD OF FINANCE IIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACtIVlTIES Forthe year endeé 31 Detember 2022 UnrestriLted funds General Designated £'(KJo RÈstrlcted Endowment Funds Funds £'ooo £'ooo Total funds Z022 2021 £'ooo Note Income and endowments from Donations Parish contributiDns Archbishop's Counril Other donatlons Charit3ble activities Fees & chaplaincy incoffle Rydal H811 S81es of goods & 5evvices Other activities Investments Other sources 4,124 937 124 4.124 1.366 201 4,224 976 313 429 23 54 570 k3 583 798 764 345 1,533 626 587 935 201 391 1,338 580 798 736 28 345 965 59 503 409 208 Totsl 7,093 J,656 1.377 214 10,340 9,545 EHpÈnditsJre on Ralg funds Charltsb1e activitie5 Resourcing rninistry & missiD Education Rydal Hall Other purw)ses 191 16 207 177 6.87g 286 426 308 24 7.613 310 1,445 12 7,182 310 1,041 50 15 io 1.407 12 Total 12 7,394 1,833 360 9,587 8.760 Net incomellexpendltuyel before investment saTns 13011 11771 1.017 214 753 785 Net gain5lllDsse51 on investments 1891 12501 11,4571 11,7091 13,5051 4,085 Net inctsme/lexpendltuj 13901 14271 14401 11,4951 12,7521 4,870 Transfers betweenfunds 22 215 50 11511 11141 other recogni5ed 8ainsll1055e$l Gainslllossesl on revaluation of flxed 855ets Acruarial gainslllossesl on deflned benefit pension scheffle5 42 42 61 61 35 Net movement in funds IL141 13771 15491 11,6091 12,6491 4.905 Ti)tsl funds broughtfotward 2,280 2,767 23.338 57,720 86,105 81,200 fotsl fvnd5 carried forward 2,166 2,390 22,789 56,111 83,456 86,105 All actlvitles derfve from contlnulng activlties. The notes on pages 32 to 65 fom) part of the flnancial ststernents. 25
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED CHARITY STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2023 Unrestricled funds General DesiEnated £'ODD £'ooo Restricted Funds £'ooo Endowment Funds £'wo Yotal fu15 2023 2022 E'OOO £'ooo Note Income and endowmentsfrom Donations P8ri5h contribution5 Ar£hbishop's Council Other donations Charitsble activities Fees & chaplaincy Incorne 4,180 945 128 4.180 1,235 146 4,124 1.366 151 290 13 521 521 583 53 28 345 1,530 617 15 Sales of Boods & service5 Otherartivities Investments Other 40 395 1.153 40 395 1,743 695 59 527 172 523 Total 7.362 I.? 527 8.955 8,797 Expenditure on Raising fund5 Charitsble activities Resourcing ministry & tni55ion Education Rydal Hall Other 174 12 207 6,745 325 12 125 7,670 376 52 7,376 310 38 12 51 15 io Total 7,256 165 863 299 8,583 7.943 Net Incomellexpenditurel bÈfore Invement galns 106 iioii 139 228 372 854 Net galnslllossesl on investments 20 178 542 82D 1,560 13,5051 Net Incomo/lexpendSiurel 126 77 1.048 1.932 12,6511 Transfer5 between funds 22 11971 570 11041 12691 Other recognSsed 8olns/llossesl Gains/llossesl on revaluatlon of rixed assets Actuarial gain5111055es1 on defined benefit pension scheme5 42 61 Net movement In funds 647 577 779 1,932 12.5481 Totsl funds broughtforward 2.166 2,273 22,799 S6,111 83,339 85,887 Totsl funds rrIed fohward 2,095 2,920 23,366 56.890 85,271 83,339 All actlvlties derfve from continulThg activities. The note5 on pages 32 to 65 form part of the financial ststernents. 26
CARLISLE tPlOCESAN BOARD OF FINANCE LIMITED CHARITYSTATEMENT OF FINANCIAL ACtIVITIES For the y¢orend*d 31 Dember 202Z Unreslrirted funds General Designated £'TrJo Restr5cted Endowrnent Funds Funds £'ooo Totsl lynds 2022 20Zi £'ooo £'ooo Income and èndowmentsfrom DLlnatlOn5 Parish EontributlOnS Archbi5hop'5 Council otherdonations 4.124 937 124 4,224 976 160 429 23 1.366 151 Fee5 & chaplaincy Incorne Rydal Hall Sales of goods & services Othei attivities Invesrments Other 570 53 28 345 965 13 583 53 28 345 1,530 617 $87 68 15 391 1,338 397 56 503 409 208 Totsl 7.146 1,377 214 8,797 8,141 Expendlture on Raising funds Charltable actlvitie5 Re50urcin8 mlnistry & rnission Educatltsn Rydal Hall Other 191 16 207 177 6,879 286 189 308 24 7.376 310 38 12 6.873 310 335 50 15 io 12 Total 7.394 189 360 7.945 7,745 Net Incomelle¥pendlturel before Irtve5tmentzalns 12481 11291 1,017 214 854 396 Net gains/llossesl on inve5tment5 1891 12501 11.4571 11,7091 13.5051 4.085 Net Incomellexpenditurel 13371 13791 14401 11,4951 12,6511 4,481 Trnn5fer5 between funds 22 162 103 11511 11141 Other rÈcognlsed galns/llosse51 Gain5111ossesl on revaluation of fjxed assets Actuarial gainslllossesl on defined benefit penslon schemes 42 42 61 61 35 Net movement Infund$ 11141 12761 15491 li,6) 12,5481 4,516 Totalfvnds brought fofward 2.280 2,549 23.338 57.720 85,887 81,371 Totalfvnds carrledfonvard 2,166 2,273 22,789 56,111 83,339 85,887 All activitie5 derivefrom continuin8 activitie5. The notes on pages 32 to 65 form part ol the lin3ncial ststements. 27
CARLISLE DIOCESAN BOARD OF FINANCE LIMtrED CONSOLIDATED SUMMARY INCOME AND EXPENDrruRE ACCOLINT Forthe year ended 31 December 2023 Total 2023 Total 2022 £'OLX) Total income per reconciliation below Re50ur¢es expended per reconciliation below 10.217 19,9281 10,377 19.7351 Operating surplus for the year Interest receivable Net gainslllossesl on investments 289 66 740 642 19 11,8041 Net Income for the year 1,095 11,1431 Other tomprehenslve Income.. Revaluation of flxed assels Actuarial 81ins/l10s5esl on defined benefit pension schemes 42 61 Total comprehenslve Income for the year 1,095 11,0401 The incc*me and expenditure account 15 derived from the Statement of Financi81 Activities with movements in endowment fund5 excluded to comply with company law. All income and expet)diture 15 derived frorn continuing activities. Reconciliation of Summary Income and Expenditure lo SOFA Total 2023 £'ooo Total 2022 £'ooo Total incoming resources per SOFA Less= interest receivable total endowment additions Add.. endowment capital transferred to income funds 10.541 1661 15271 269 10,348 1191 12141 262 Total irtcome per above 10,217 10,377 ResOurS expended per SOFA Less: expendlture charged to endowment capital Add- income funds reclassified as endowment capital 10,227 12991 9,587 148 Total expendlture per above 9,928 9,735 28
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED CONSOLIDATED BALANCE SHEET At31 Decernber 2025 Company Number- 39625 2023 2022 Note eooD £,0 £'ooo rooo FIXED ASSETS Tangible as5et5 Investments 23 24 41,241 41,795 41,085 42,024 83,036 83,109 CURRENT ASSETS Stock Debtors Cash on déposit Cash at bank and in hand 25 26 4,462 3,637 479 3.781 1.911 1,015 8,587 6,715 CREDITORS- amounts falling due within one year 27 16,2931 16,2681 NETCURRENT ASSETS 2,294 447 TOTAL A55ETS LESS CURRENT LIABILrriES 85.330 83,556 CREDITORS.. amounts fallin8 due after more than one year Other creditor5 28 iiooi 11001 NET AssErs 85,330 83.456 FUNDS Endowment funds IncludinE Investment revaluation reserve of £34,215,000 12022= £33.396.0001 Restricted income funds Including investment revaluatlon resetve of £7,433,000 12022= £6.889,0001 Unrestri¢ted Income funds.. General funds- Including revaluation reserve of £531.000 12022: £511,000) Designated fund5- Including revaluation reserve of £935,000 12022= £756,000) 56,890 56,111 23,366 22,789 2.095 2,166 2,979 2,390 TOTAL FUNDS 29&30 85.330 83.456 The Cash Flow Statement and the Notes forrn part of these financlal statements. The financial statements were approved by Ihe Trustees and authori5ed for issue on and Signed on behalf of the Board by: nson July 2 29
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED CHARITY BAIANCE SHEET At 31 DÈtembÈr2023 Company Number-39625 2023 2022 Note £'ooo E'OOO £'ooo FIXED Assrrs Tangible assets Investments 23 24 41,079 41.795 40,980 42,024 82.874 83,004 CURRENT ASSETS Debtor5 Subsidiary companie5 Cash on deposit Cash at bank and in hand 25 4.430 171 3,540 342 3,724 159 1,719 836 26 8,483 6,438 CREDITORS: amounts falling due within one year 27 16,0861 16,0031 NEf CURRENT ASSETS 2.397 435 TOTAL ASSETS LESS CURRENT UABILITIES 85,271 83,439 CREDITORS.. amounts falling due after more thart onè yèar Other credltors 28 iiooi ASSETS 85.271 83,339 FUNDS Endowment fund5 Including investment revaluotion reserve of £34,215,000 12022.. £33.396,0001 Restrirted Incomefunds Including investment revaluatlon reserve of £7,433,000 12022- £6,889,0001 Unrestricted income funds-. General funds- Including revalu3tlOD Teserve 01 £531,0(K) 12022.. £511,000) Designated funds- Includlng revaluatlon reserve of £935,000 12022.. £756,000> 56,890 56,111 23,366 22,789 2.095 2.166 2,920 2,273 TOTAL FUNDS 29&30 85,271 83.339 The Cash Flow Statement and the Notes form part of these financial statements. The financial statements were approved by the Trustees and authorised for issue on and signed on behalf of the Board by= Jo nson JuFy2 30
CARLISLE DIOCESAN BOARD OF FINANCE UMITED CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2023 Z023 2022 É'o £'ooo 11,9571 £'ooo vo Net cash Inflowllouttlowl from operating activities Cash flows from Investlng acttvltles Divldends, Interest and rentlrom investments Interest paid Proceeds from the sale of.. Tangible fixed awts InvestTnent5 Purchase of. Tangible fixed assÈts Flxed a55et investments 17591 1,749 1121 1,533 612 2,282 1,372 18591 14751 lJ,0261 12,0951 Net Cash provlded byllused inl inve5tingaL*ivitie$ 3,297 261 Cash flowsfrom financing activities Repayment of loans 11501 11501 Net ¢•sh provlded byllused Inl flnanclng artlvStle5 11501 11501 ChanKe in cash ond ¢ash equlvalents inthe reporting perlod 1,190 16481 Cash and cash equlvalent5 * ljafiuary 2,926 3.574 Cash and cash equivalent5 at 31 Detember 4,116 2.926 Reconclllaiionof net movementsinfuni15tonetcash flow from operatlng artivitles Net movement in funds for the year ended 31 De¢ember Adlu5trnenlsfor. Depreciation charges ividends, interèst and rentfrom investments Interest paid Repayment of loans advanced Advancernent of loans Lossllprofitl on sale of functional a55ets Actuarial gain5 on defined benefit pensions Ilncreasel in stock IlncrÈasel In debtor5 In¢ase in credltor5 314 753 49 11.7491 12 18 32 11,5331 31 16051 61 16811 76 16461 1.143 N2t cash provlded byJlu5ed inl operating activilies 11,9571 17591 Analysis ol tash and cash equlvalents Cash in hand Notice deposits (less than 3 month51 479 3.637 1,015 1,911 4.116 2.926 31
CARUSLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENT5 For the year ended 31 December 2023 I. ACCOUNTING POIICIES The financial statements have been prepared under the historical cost convention, with the exception of freehold properties, which are included as determined under the applicable valuatlon method as detailed in dl, and fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities ISORP 20191. the Companie5 Act 2006 and applicable accounting standards IFRS1021- The principal accounting policies and estimation techniques are as follows- a) Consolidation Consolidated financial statements have been prepared on a line by line basis in accordance with FRS102. The consolidated financial statements incorporate the accounts of: Parent, The Carlisle Diocesan Board of Finance Limited (Carlisle DBFI,. and The wholly owned subsidiary company, Rydal Hall Limited,. and The wholly owned subsidiary company, Cumbria Christian Learning- and The wholly owned subsidiary company, Restore (Cumbrial bl Income All income is included in the Statement of Flnancial Activities150FAI when the DBF is 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. il Ministry Offer {previously known as Parish Offer) and parochlal fees are recognised as income of the year in which they are received or within one month after the financial year end to whlch they relate. ill Rent receivable 15 reco8nised as income in the period with respect to which it relates. iiil Interest and dividends are recoBnised as income when receivable. iv) Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are included in creditors to be carried forward to the following year. vl Donations other than grants are recognised when receivable. vi} Gains on disp0531 of fixed a5set5 for the DBF'S own use li.e. non-investment a55et51 are accounted for as other income. Losses on disposal of such assets are accounted for as other expendlture.. 32
CARUSLE DIOCESAN BOARDOF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 December 2023 I. ACCOUNTING pouaES {contlnued) vil} Stipends fund Income. The Stipends Fund Capital account Is Eovemed by the Diocesan Stipends, Fund Measure 1953, as amended, and the use of the income is restricted for clergy stipends. However, the income is fully expended within the year of receipt and the legal restrictions, therefore, are satlsfied. It is on this basis that the income and the Inormally much larger) related expenditure are both included in the unrestricted column of the Statement of Financial Activities for the sake of greater clarity and simplicity in financial reporting. viiil Govemment Grants. Grants for the purpose of giving immediate flnancial support with no future related costs to be incurred are recognlsed in the profit and'loss account when the grant proceed5 become receivable. Other grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate. cl Expenditure Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the Statement of Financial Artivity category. il Cosls of ralsing funds include investment management costs of glebe and any other investment properties and interest costs on defined benefit pension scheme Ilabilities. ill Charitable expenditure Is analysed between contributions to the Archbishops, Council. expenditure on resourcing mission and ministry in the parishes of the diocese, expendlture relating to the running of the diocesan retreat centre. and expenditure on education and Church of England schools in the diocese. iiil Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditior)al on the recipient satisfying performance or other discretionary requirements to the satisfaction of the DBF, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure. iv) Support Costs consist of central management, administration and governance costs. Costs are allocated wherever possible directly to the artivity to which they relate, but where such direct allocatlon is not possible, the remainder is allocated on an approxirnate staff time bas15. vl Pension contributions. The DBF's Staff are members of the Church Workers Pension Fund and Clergy are members of the Church of England Funded Pensions Scheme15ee note 311. The pension costs charged as resources expended represent the DBF'S contributions payable in respect of the accountlng period, in accordance with FR5102. Deficit funding for the pension schemes to which DBF participates is accrued at current value in creditors distinguished between contributions falling due within one year and after more than one year. 33
CARIISIE DIOCESAN 80ARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 De£ember 2023 I. ACCOUNTING POLICIES (continued) dl Tangible fixed a55ets and depreciation Freehold properties Depreciation 15 not provided on buildings as any provision lannual or cumulativel would not be material due to the very long expecled remaining useful economic life in each case, and because their expected residual value is not materially less than their carrying value. The DBF has a policy of regular structural inspection, repair and maintenance, which in the case of residential properties is in accordance with the Repair of Benefices Buildings Measure 1972 and properties are therefore unlikely to deteriorate or suffer from ob501escence. In addition, disposals of properties occurwell before the end of their economic lives and disposal proceeds are usually not less than their carrying value. The Trustees perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not more than the recoverable amount. Investment properties Glebe properties which are held for investment purposes and rerhted out have been included at their fair value, determined through external professional valuations. Parsonuge houses The DBF has followed the requirements of FRS102 in its accounting treatment for beneflce houses Iparsonagesl. FRS102 requires the accounting treatment to follow the substance of arrangements rather than their strict legal form. The DBF is formally responsible for the maintenance and repair of such properties and ha5 some jurisdiction over their future use or potential sale if not requlred as a benefice house, but in the meantime legal title and the right to beneficial occupation is vested in the incumbent. The Trustees therefore consider the most suitable accounting policy is to capitali5e such properties as expendable endowment assets and to carry them at their deemed cost at a fair valuatlon at l January 2014. el Other tangible fixed assets All capital expenditure over £1,000 is capitalised and depreciated. Depreciation is provided in order to write off the cost (less any expected ultimate disposal proceeds at price5 ruling at the time of the a55et's acquisition) o* other fixed assets over their currently expected useful economic lives at the following initial rates:_ DBF furniture. fittings, equipment and computers IO% to 20Yo per annum on a straight line basis,. 10-25% per annum on a straight line basis. Rydal Hall furniture. fittinES, equipment and plant 34
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 I. ACCOUNnNG pouaES {continued) f) Other accounting policies il Fixed asset investments are included in the balance sheet at market value and the gain or loss taken to the Statement of Financial Activities. Subsidiaries (where shares are heldl are valued at fair value based on balance sheet value. Jointly controlled entities are valued at fair value using the net assets of the entity and the share held. ill Leases. The DBF has entered into operating lease arrangements for the use of certain assets, the rental for which is charged in full as expenditure in the year to which it relates. Where rent free periods are given as part of an operating lease, the impact of this rent free period is reflected in the Statement of Financial Activities over the shorter of the overall lease term or the period to the first break clause. E) Fund balances Fund Balances are split between unrestricted (general and designated), restricted and endowment funds. Unrestricted funds are the DBF'S corporate fund5 and" are freely available for anv purpose within the charitable companws objects, at the discretion of the DBF. There ale two types of unrestricted funds: General funds which the DBF intends to Use for the general purF)oses of the DBF- and Designated funds set aside out of unrestricted funds by the DBF for a purpose specified by the Trustees. Restrlcted funds are funds subjett to condition5 imposed by the donor as specific terms of trust, or else by legal measure. Endowment funds are those held on trust to be retained for the benefit of the charitable company as a capital fund. In the case of the endowment funds administered by the DBF (Parsonage Houses Fund and Retired Clergy and Dependants Fund), there are discretionary power5 to convert Capital Into income and, as a result. these fttnds are classified as expendable endowment. Endowment fund5 where there is no provision for expenditure of capital are classified as permanent endowment. "Special trusts" las defined by the Charities Act 2011) and any othertrusts where the company act5 as trustee and controls the management and use of the fund5, are included in the company's own financial statements as charity branches. Trusts where the DBF acts merely as custodian trustee with no control over the management of the funds are not included in the financial statements but are summarised in the notes to the financial statements. 35
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 I. ACCOUNTING POLICIES (continued} h) Going Concern The charity ha5 considered whether the use of the going concern basis for accounting is appropriate. To do this, they have considered whether there are any material uncertainties as to the Charity's ability to continue as a going concern. The trustees have prepared detailed budgets covering the coming four-year period, based on actual experience and taking into account church finances in light of recovery from the 2020 pandemic and the current cost of living challenges. As a result of thls work, the trustees remain confident that there are financial resources 2vallable to fund their work. and are Satisfied that there are no material uncertainties about the charity's ability to continue as a going concern. 36
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 DONATIONS Parish Contribution5 The majority of donations are collected from the paiishe5 of the diocese throuÉh the parlsh offer system (now known as 'Ministry Offer'l. Un$trirtedfUDds General Designated £'ooo Restrirted Endowment Funds Fund$ £'ooo £'ooD Totalfunds 2023 £'ooo 2022 £'ooo Current year Offer Shortfall in contributions 4,208 1551 4,208 1551 4,172 1951 4,153 4.153 4,077 Receipts for previou5 years 27 27 47 Toial Income 4,180 4,180 4,124 Total receipts (including for previous year51 represent 99.3% of the parish offer12022- 98.8%). Archbighop's Councll Unrestrirted funds Genelal DesignJled Restrlrted Endowment Funds Funds £'ooo Yotal funds Z023 2022 £'ooo LINC allocation Strateglc Dèvelopment Grant Sttsteglc Ministry Fund Diocesan InvÈstment Fund Icapacityl OtherErants 592 353 592 353 162 30 564 356 162 30 98 98 446 945 290 1,235 1,366 Other donation5 Unresirirted funL15 General Designated É'(N)o Restricted Endowrnent Fund5 Funds £'ooo Total funds 2023 £'ooo 2022 £'TrJo £'ooo BenefartTrust Mlnlstry Partners Donatlons 79 33 16 79 46 21 90 23 38 13 CompanyTotal 128 13 146 151 Rydal H811 Restore Icumbrlal 16 23 16 23 47 Group Total 128 44 13 185 201 37
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL sfATEMENTS For the year ended 31 Decembèr 2023 3. CHARITA8LE AcnvmES Fees and chapla5ncy Income Unrertrfcted funds fjeneral Designated £'ooo £'ooo Restrirted Endowment Funds Funds E'OOO f'ooo Total fvnds 2023 £'wo 2022 Statutory fees ChaplainLv Support for Ministry Course and otherfees 354 27 130 io 354 27 130 io 393 li 159 20 CompanyTotal 521 521 583 Course and otherfees GroupTotal 521 521 583 Other sales Unrestrictedlund5 General Deslgnated £'ooo Restrlcted Endowment Funds Funds Totslfunds 2023 £'Mo 2022 £'ooo Educatlon serrfices 40 40 28 CompanyTotsl 40 28 Ryd81 Hall Resto Icumbrlal 305 305 GroupTotal 40 305 345 764 OTHER TRADING AcrivrriES UnrestrKied funds General Designated É'ooo Restrltted Endowment Funds Funds £'ooo f'OOO Total funds 2023 E'OLKI 2022 É'ooo Parsona8e nts 395 395 395 395 345 INVESTMENT INCOME Unrestrlcted funds General Des5Bnated Restritted Endowment Funds Funds £'ooo Total funds 2023 È'ODD 2022 £'ooo Dividends receivable Interest receNable Rents recelvable 825 18 310 56 466 24 37 1,347 49 347 1,169 30 331 Cornpanytotal 1,153 59 527 1,743 1,530 Sub51dlarls interest Consolidated total J,153 65 527 1.749 1,533 38
CARUSLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Detember 2023 oTrrER INCOMING RESOURCES UnrerICted funds General Designated £'ooo Re5trlcted Endowment Funds Funds £'ooD rotal funds 2023 £'ooo Z022 £'ooo £,0 GaiTr on Sale of properties Insurance Receipt5 Sales of redundant churches 24 123 4LM) 147 400 148 548 69 Company fotal 172 523 695 617 Rydal Hall Restoie Icumbrlal Group Totsl 172 523 695 626 GovernrnenVLocal Authority grants are made up of.. Company 2023 Group. 2022 £'ooo Z023 E'OOO 2022 Covid-Related Grants Total RAISING FUNDS Unrestricted fund5 General DesIgnad £'ooo £'ooo Restrl¢red Endowment Fund5 Funds É'orx) £'ooo Total fund$ 2023 E'ooo 2022 Investment management Generating voluntary Income 118 56 12 130 56 156 51 174 12 186 207 & RESOURCING MISSION AND MINISTRY Ministry in the communities-stipend c05t5 Unrestri(ted funds General Deslgnated £'ooo £.0) Restrirted Endowment Funds Funds £'ooo Totalfunds Z023 £'ooo 2022 £'ooo Stipends Natlonal insuran£elAp. Levy Pension costs Removal, resettlement & other grants Other costs 2,079 175 83 2,162 180 513 2,124 180 619 28 152 322 152 322 227 395 3,213 116 3.329 3.545 39
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 310ecember 2023 8. RESOURCING MISSION AND MINISTRY Icontinued) Ministry in the communltles- houslng costs Unrestrirtedfunds Gene¥al Designated £'ooo £'ooo Restrirted Endt)wment Funds Funds E'ODO £'wo Total funds Z023 zozz £'wo Repairs & improvements CounEiI tax Water charge5 Insurance Rent payable Other costs 625 250 60 35 36 150 811 250 233 49 35 220 220 165 1.192 36 1,378 1,124 Total ministry In the communities 4,405 36 266 4.707 4.669 Support for ministry Lay mlrtl#ry & chaplalncles Network Youth Minlsters and Interns Chaplains 306 306 254 31 31 33 337 337 287 Training & ministry development Ordained min15try:" Ordinand5 Curates Ministry development Lay tralning Northern M155Ion Centre 324 14 20 18 129 61 385 14 20 18 129 446 io 41 19 128 505 61 566 644 Restore Icumbrfal 35 35 78 God ForAII strategy Support for local churche5 Reach Team Ploneerlng mln15trles 54 299 357 252 275 62 260 265 252 275 531 54 299 587 ca for churth bulldlnss 78 129 207 116 40
CARUSLE DIOCESAN BOARD OF FINANCE LIMrrED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 RESOURCING MISSION AND MINisfRY Icontlnuedl Unrestrirted funds General Designated £'ooo £'uoo Restricted Funds £'o)o Endowment Funds £'ooo Total funds 2023 20ZZ £'ooo MinTStry support National Church Dloce5an Church Partner5hip5 Retired clergy 270 600 19 270 257 640 19 79 19 45 45 889 45 934 995 Total support for min45try 2,340 89 534 2,963 2,707 Total Company resourcinE mlsslon & ministry 6,745 125 800 7,670 7,376 Training & ministry development~ Ministry development 321 321 237 Total Group resourci mission & mirbi5try 6.745 446 7.991 7,613 EDUCATION Unrestricted funds General Oeslgnated £,0 Restrirted End¢)wment Fulld5 Funds 'ooo £'ooo Total funds 2023 £'ooo zozz £'ooo Supportfor church schoo15 325 51 376 310 325 51 376 310 10. OTHER RESOURCES EXPENDED Unrettritted funds General DÈslgnatsd £'ooo Restricted Endowment Fund5 Fund5 £'ts)o £'ooo Totalfunds 20Z3 £'ooo 2022 Deflclt on fixed assets 299 299 Companytotal 299 299 12 ileficlt on fixed assets Consolldated total 299 301 12 41
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIALSTATEMENTS For the year ended 31 December 2023 11. ANALYSIS OF CONTRIBUTIONS TO ARCHBISHOP5' COUNCIL unre5trl¢ted funds General Desl8nated £'ooo Restrltted Endowment Funds Funds £'ooo £'ooo Totsl funds 2023 2022 £'ooo National Church Grant5 & provIsn5 Mission Agency pension5 Retlred clergy houslng 124 22 124 22 130 18 84 237 237 237 12. ANALYSIS OF EXPENDITURE INCLUDING ALLOCATION OF SUPPORT COSTS Activitles Undertake Dlrettty É'ooo Grant Fundlng of Al¥ltieS Support Tijtal (051$ 2023 2022 £'TrJo £'oc#J Raisinefunds Charitable actlvltle5'. Re50Ufcing Mi55i0TI & Ministry Education Rydal Hall Other 98 88 186 207 6,746 295 1.363 299 756 489 81 12 7,991 376 1,375 299 7.613 310 1,445 12 8,801 756 670 10,227 9,587 13. ANALYSIS OF SUPPORT COSTS Unrestrlcted funds G¢rteral Deslgnated £'ooo Restri¢Od Endowment Funds Funds £'ooo Total funds 2023 £'ooo 2022 £70 Finance and adminlstratlon Msnagernent costs Human re5Durce5 Auditor's rernuneration Governance 299 112 167 23 69 299 IJ2 167 23 69 269 107 140 19 61 670 670 596 Governance £Dsts include the costof preparingannual account5, and the cost of Board meetings. Bishop's Councll and Diocesan Synod. 42
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 14. ANALYSIS OF GRANTS MADE Grants to In5titutior15 Grants to Indivlduals £'ooo Total 2023 £'ooo Total Z022 £'ooo From unrestrfcted funds.. Contriburions to Archbishops, CouncTI From restrlcted funds= R@sourcinB ministry and mission.. Grants to parlshes Grants for ordinands Grants to clergy Grant5 to retired ¢ler8y 237 237 237 347 23 347 88 152 43 65 152 43 108 87 76 607 260 867 542 43
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTESTO THE FINANCIAL STATEMENTS For the year ended 31.December 2023 15. RYDAL HALL Rydal Hall Ltd 15 a wholly owned subsidiary company incorporated in England. On 21 December 2017 it became a registered charity. It is the sole owner of a trading company* Rydal Hall Trading Ltd. Its principal activity is the operation of the Carlisle Diocesan Retreat House and Conference Centre at Rydal Hall, Ambleside. Rydal Hall is owned by the Carlisle DBF and leased to the subsidiary. Any taxable profits made by the subsidiary are donated to the DBF. Audited accounts are filed annually with Companies House. A summary of the consolidated trading results of Rydal Hall Ltd and its subsidiary is shown below. ilnrestTlrted fund5 General Designated £'ooo Restrided Endowment Funds Funds £'ooo T¥1 funds 2023 2022 Turnover Other operating income Government Grants 12 1.292 1.270 1,280 12 1,292 1.278 Interest recelvable Total Intome 1,286 12 1,298 1.281 Cost of sales AdminisrrativÈ expenses 208 1,143 208 1.155 223 1,237 12 Ttrtal expendiiure 1,351 12 1,363 1,460 Profit I Ilossl on ordlnary adlvlile5 befvr• tax 1651 11791 Taxation Profrt I1105sI on ordlft•ry artlvltles after tax 1651 1651 11791 Retained profits blf 12451 12451 1661 Retained profrts (If 13101 13101 12451 Other reserves 269 269 269 Totalfund$ ¢arrled forword 1411 1411 24 Fixed assets Net current assets / 142 11831 142 11831 86 1621 Net ¥5$pts 1411 1411 24 Included in income is a grant of £40,00012022- £Nill from the DBF to Rydal Hall Ltd. Included in administrative costs above are payments to the DBF of Enil12022.' £45,000) rent and a management charge of £nil12022: £8,000). Company Number02561024 Charity Number 1176419 44
rJRLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ende(131 December 2023 16. RYDAL HYDRO LIMITED Carlisle DBF owns a 50% share of Rydal Hydro Limited as a joint venture after investing £700,0 in the issued share capital of the company. Rydal Hydro Limited was incorporated in England on 26 February 2014 in order to construct a hydroelectric plant on Rydal Beck in the ground5 of Rydal Hall to generate renewable electricity. The DBF'S share of the result5 and net assets of Rydal Hydro Limited are shown below. Unrestrlctedfunds General Deslgnated £'o¢)o £'ODO Restrlcted Endowmeftt Funds Funds £.0 T¢)tsl fvnds 2023 £'o 2022 Turnover Cost of sales 309 1161 3Dg 1161 245 Gross proflt Administrative expenses 293 1951 293 1951 214 1791 Operating profit Interest receivable 198 198 135 ProtitllLossl on ordinary actlvltles before tal Tax8tlon 199 1481 199 1481 135 Profitlllosslforthe year Retained proflts blf Dlv5dends paid 151 128 11751 151 128 11751 163 11191 Retalned profrts clf 104 104 128 Called up shère capltal Sh3re premlutn account 693 693 693 Tbtal fund5 carrlod forward 804 804 828 Fixed a55ets Net current assets Creditors falling due after more than one year 841 65 841 65 11021 11021 iioii Net asset$ 804 828 Company Number 08912230 45
CARLISLE DIOCESAN BOARD OF FINANCE IIMITED NOTESTO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 17. RESTORE (CUMBRIA) Restore (Cumbrial had historically been a dormant company. On l July 2020, the staff, net assets and activities of the Diocese's OPSHOPS network of charity shops and mlnlstry were transferred to Restore (Cumbrial, a subsidiary charity of the Carlisle D8F. Untritted fLJnds General Peslgnat¢d £'NJo £'ooo Rertrlcted Endowrnent Funds Funds £'ooo 2023 2022 £'ooo Income frorn.. Turnover Grants and Donations Government Grants 305 305 57 268 L24 55 Total income 307 55 362 392 Resources expended.. Costs of Sales Adrnini5trative Expenses 314 37 351 312 Totsi resources expended 314 37 351 313 Net in¢ome ftsrthe year Retsined lunds blf 18 li 93 79 14 59 Retslned funds ¢/f 52 52 104 93 Fixed assets Net current assets Credltor5fallln6 due after rnore than one yeh 19 33 19 85 27 66 52 Net assets 52 52 104 93 Included in grants and donations above is a grant from Carlisle DBF of £35,00012022: £85,000). The above-named charity - Restore (Cumbrial - is entitled to and is usin8 an audit exemption under Section 479A of the Companies Act 2IK)6 Iyhe Act"). The members have not required the charity to obtain an audit for the year In questlon in accordance with Section 476 of the Act. In accordance with Section 479C of the UK Companies Act 2006, the charity - Carlisle DBF - has irrevocably guaranteed the liabilities of tts above-named subsidiary in respect of the financial year ended 31 December 2023. Company Number08146662 Charity Number 1187078 46
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 December 2023 18. TAXATION Carlisle DBF is a registered charity and has no liabillty to corporation tax. 19. STAFF cosrs 2023 £'OC4) 2022 Employee costs during the year were as follows: Wages and salarie5 Natlon31 Insurance contributlon5 Employerfs contributions to pension 5cheme5 2,476 220 325 2,234 310 3,021 2,744 The average number of pèrsong employed by the group during the year.. Nurnber Number Re50urcing mirnistry and rni5510n Education RestrJrÈ Cumbria Christlan Learnlng Rydal Hall 50 48 io io 36 37 loo Of these p05t5, 15 were externallyfijnded through grants recelved from the Archbishop's Council and other mtsslon partners. The average numberof persons ernployed by the group durlng the year based on full-tlme equiv8lents'. Number Number Resourcing rnini5try and rni55ion Education Opshop5 Rydal Hall 39 41 io 30 28 83 81 The numbers of staff whose eFnoluments lincluding bn[tS in klnd but excluding pension contritIOns} amounted to more than £60.000 were aslollows.. Number Number £60,000- £70,000 £80,000- £90,000 £90,000- £IW.OCM) 47
CARLISLE DIOCESAN BOARD OF FINANCE IIMITED NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 December 2023 20. COSTS OF STIPENDIARY CLERGY Carlisle DBF is re5pon5ible for fundinE, via the Churth Commissioners. the stipends of licensed stipendlary clergy in the diocese, L)ther than bishops and cathedral Staff. The DBF L5 also responsible for the provision of housing for stipendiary clergy in the dlocese including the Suffragan Bishop but excludinB the Diocesan BishoTrp and cathedral staff. The stipend5 of the Diocesan Bishop and Suffragan Bishop. funded by the Church Cornmissioners, are In the range £55,000- £60,00012022 ran2e £55,000- £60,0001- The annual rate of stipend. funded by Carli51e DBF, paid to Archdeacons in 2023 was £39,69612022- £37,890). The Diocesan standard stipend for 2023 wa5 £29,05612022- £27.7321. Carlisle DBF paid an average of 7412022- 781 stipendiary clergy as office-holders holding parochial or diocesan appointments in the diocese and thè costs were as follows.. 2023 2022 £'ooo Stlpends Natlonal in5urènce conrrlbutlons and apprenticeship levy Employerf5 Contributions to defined benefit pension scheme5'. Currenl year DefiEit reduction 2,237 182 2,240 192 545 683 87 2.964 3.202 21. REMUNERATION OF TRUSTEES AND OTHER KEY MANAGEMENT PERSONNEL Trusteeg emoluments No Trustee received any remuneration for services as Trustee. Thè Trustees received travelling and out of pocket expenses, totalling £23,00012022- £28,000) in respect of General Synod dutles. dutles as archdeacon and other duties as Trustees. The following table gives details of the Trustees who were in receipt of a stipend andlor housing provided by the DBF during the year.. Stlpend HouslnB The Right Revd James Newcome The Venerable Dr R Pratt The Venerable V Ross The Venerable S J Fyfe Yes Yes Yes Yes Yes Yes Yes Yes Key management personnel are deemed to be those having authoTity and r@SPDnsibility, delegated to them by the trustees. for plannin& directing and controlling the activitie5 of the dI0Se. Ourlng 2023 they were.. Diocesan Secretary and Company Secretary Director of Education Head of Finance Remuneration, pensions and expenses for these 3 employees12022'. 41 amounted to £288,(KJO 12022.. £255,000). 48
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 22. ANALYSIS OF TRANSFERS BETWEEN FUNDS UnTestrf¢ted funds General Designated É'ooo £'ooo Restrltted Endowrnent Funds Funds £'o £'ooo From 8archester Fund for Educatlonjl 5UPPOrt Transferfrom Pastoral alc for hoSIng Costs Parsonage Houses Fund to Pastoral Account From General Fund to Netzero Property Fund From General Fund to Sustainabillty Fund 154 219 11541 12191 269 12691 12501 13201 250 320 Net transfers between fuTh15 11971 570 11041 12691 23. TANGIBLE FIXED ASSETS Consolidated Freehold Land and Building5 £'ooo Parsonages Houses Freehold lrnprovernents Furnlture and Eqyiprnent Tal £'ooo £'OLX) £'ooo Cost orvaluatK)n At ihl J3nuary 2023 Additions Transfers Disp05als Revaluations 8,105 758 32,852 136 13 256 41,349 859 11721 14801 1621 17671 At 31* December 2023 8,691 32,372 87 291 41,441 DepreciatiOD At 1st January 2023 Disposals Depreclatlon for the year 94 1601 170 264 11131 49 40 At 31st December 2023 43 157 200 Net B¢)okValue: At 31&t December 2023 8.691 32,3T2 44 134 41,241 At31X D¢Mbr 2022 8.105 32,852 42 86 41.085 49
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTESTO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 23. TANGIBLE FIXED ASS5 (continued) Company Freehold Land and Bulldin85 £'ooo P¥rsono8eS HDuses Freehold Improvements FurTrlture and Equipment Total £'ooo £'ooo £'ooo Cost or valuation At 1st January 2023 Addltions Transfers Disposals Revaluatlons 8,105 758 32,852 128 41,085 758 11721 1371 16891 Al 31* DeEernber 2023 8.691 32,372 91 41,154 Depreciation At I"January 2023 DpOSa Depreciation fortheyear 105 1371 105 1371 At 315¢ December 2023 75 75 Net Bookvalue: At 31tt DeombÈr 2023 8,691 32,372 16 41,079 At 31Èt December 2022 8,105 32,852 23 40,980 All of the properties in the balano sheet are freehold and are vested in Carlisle DBF, expt for benefice house5 which are vested in the incumbent. Land and buildings at 31 December 2023 are valued at fair value as deemed cost as at 1st January 2014 or subsequent cost. Propertie5 are sublect to a five-year cycle of survey 3nd consequent repairs are charged as expenditure. 50
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTE5 TO THE FINANCIAL 5TATEMEwrs For the year ended 31 December 2023 Z4. NVESTMENTS FIXED ASSET INVESTMENTS Cony)Ildated and Companv Value at l#January 2023 E'OOO Additions Dlsposats Transfers Change In Market Value £'ooo Value at 31Ji December 2023 É'ooo £'ooo unstrIcted Funds Investment in jolnt ventures CBF Investment Fund 879 i.oii 1751 95 1,106 1,890 20 1,910 Designated Funds C8F Investment Fund L,894 178 2.072 1,894 178 1072 Restricted Funds Investment properties CBF Property Fund C8F InvÈstment Fund 2,455 3,830 8,279 2,455 3,595 9.056 12351 777 14,564 542 15,106 Endowment Funds Inve5trnent propertie5 Hydroelectilc Schemes CBF Property Fund CBF Investment Fund 9.685 876 2,012 11,073 12,2451 7,440 798 2,340 12.116 1781 11471 1,043 475 23,646 475 12,2451 818 22.694 Total 41,994 475 12,2451 J,558 41.782 Total Hlstorrcal Co 21,565 475 18281 1951 21,117 SOCIAL INVESTMENTS Cortsolldated and Comparry Value al lit January 2023 New loan5 Repald Transfers Adiustrnent on ValuÈ at 31tt Decernber settlement 2023 £'ooo Unrestrltted Fund5 Loans to parishes Loan to Emrnanuel College 20 io 1181 io 30 1181 13 TOTAL INVESTMETrirs Total Con501¢dated Investments 42,024 476 12,2631 1,558 41,795
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TOTHE FINANCIAL STATEMENTS For the year ended 31 December 2023 24. INVESTMENTS (continued) The social investments of Carlisle DBF consist of concessionary loans made to parishes and Emmanuel College. for charitable purposes. All the investments relate to the Company. The Company also has an investment- book value £nil 12022 £rbill- original cost £250.10012022= £250,100) in Rydal Hall Limited. 25. DEBTORS Consglldated 2023 2022 £'ooo £'ODO Company 2023 £'ooo 2022 £'ooo Due within one year Unrestricted funds Trade debtor5 IrEter fund balance5 Other debtors 82 1,860 82 58 1,804 82 1.$60 82 58 2.024 1,946 2,024 1,546 Deslgnated funds Trade debtor5 Inter fund balances Other debtors 759 32 350 53 759 350 791 407 759 35r) Re5trirted funds Schotsl debtors IntÈr fund b81ances 457 354 457 354 674 674. 811 1,422 811 1,422 EndDwment Fyrtds Interfund balances Other Debtors 394 442 394 442 836 836 Total debtors due wlthin one year 4.462 3.781 4A30 8.724 52
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENT5 For the year ended 31 December.2023 26. DEPOSITS Consolidated 2023 21)22 £'ooo £'ooo Company 2023 £'ooo 2022 £'ooo Unrestrirtedfvnd$ CBF Deposit Fund5 305 39 305 39 Deslgnated funds CBF Deposlt Funds 186 222 89 30 Restrtrtedfunds C8F Deposlt Funds Deposits wth church ComMissne[S 2,a24 220 1,454 73 2,024 220 1.454 73 2,244 1,527 2.244 1.527 Éndowmentfunds CBF Deptsslt Funds 902 123 902 123 Total depostts 3,637 1.911 3,540 1,719 27. CREDITORS: amounts falling due within one year Consolhlated 2023 Yooo Companv 2022 £'ooo 1023 eooo 2022 Uhrestri¢ted fvnd$ Sundry creditor5 and arcruals IDterfund b313ncÈs Loan repayrnent Instalments.. CeThtra5 Board of Finance Cumberland Bulldln8 Sodety 1.033 1,506 1,263 1,030 1,263 1.030 1,506 i) Ic 50 10) loo 50 2,639 2,443 2,639 2,443 Deswnated funds Trade credllors 20 187 28 237 Sundry credltor5and accruals 207 265 Re5trictedlunds Inter fund bal3nce5 sundry crediiors and accruals L801 1,5B7 1,143 1,756 1,801 1,587 L143 1.756 3,388 1899 3,388 Endowment funds Interfund balances 59 661 59 661 59 661 59 661 Totsi cred0T$ failln8duewlthlnoneyear 6.293 6,268 6.W3 53
CARLISLE DIOCESAN BOARD OF FINANCE LIMIYED NOTES TO THE FINANCIAL sfATEMENTS For the year ended 31 December 2023 27. CREDITORS: amounts falllng due within one year (Continued) Within unrestricted sundry creditors and accruals, there is £444,82012022 - £404,771) deferred income. The one material balance of £330,000 has been deferred as proceeds from the sale of a school building require government approval before they can be retained by the charity. 28. CREDITORS: amountsfalllng due after more than one year Con501idated 2023 É'ooo Companv 2023 £'ooo 2022 É'ooo 2022 £'ooo Unrestrlcted funds Lo3n repayment Instalments.. Central Board ol Finance loo loo loo loo Total credltoys falllng due after one year IOD loo £1 million was borrowed from the Central Board of Finance Deposit Fund Dlocesan Loan Scheme in 2014 in order to finance the investment in Rydal Hydro Limited. It is repayable in equal annual instalments of £IOO.000 over ten years with interest charged at 0.55% above the CBF Deposit Fund rate Icurrently 5.80%). The loan from the Cumberland Building Society (note 27 & 281 was held on behalf of parishes. The loan was a rolling facility with up to £500,000 available. Interest was charged at 1.99% below the Society's commercial variable base rate. The loan was secured on Rydal Hall and was due for renewal in December 2023. The loan wa5 repaid in full in 2023 and the charge on Rydal Hall was leased. The maturity of the loans is analysed as follows.. 2023 £'ooo 20ZZ £'ooo Between L)ne and two year5 Between two and five year5 In five years or more loo loo 54
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 29. SUMMARY OF FUND MOVEMENTS Unrestrirted Fund5- 2023 Balan at irtjanuary 2023 £'oDo Balance 3111 December 2023 £'ooo Gain5 and 1055es Income Expendfture Transfers £,0 £'ooo £'OOD Geneial funds ReallsÈd roserve Revaluation rÈseNe L655 511 7,362 17,2561 11971 1,564 531 20 2.166 7,362 17,2561 11971 20 2,095 Des¥nated Fund5 Diocesan Growth Fund Resources Centre Rydal Hall 5ustalnabllity Fund Net Zero Property Fund Resto 1,973 1541 178 2,161 loo 199 1401 1351 1361 150 145 250 25 210 309 214 25 Total Cornpany Desigfiated 2,273 11651 570 178 2,920 Restore Icumbrlal Rydal Hall Limited 93 24 327 1,259 13201 11,3241 100 1411 Total Group Deslgnated Funds 2,390 1,650 11,8091 570 178 2,979 Total Group Unrestricted Funds 4.556 9,012 19,0651 373 198 5,074 55
CARLISLE DIOCESAN BOARD OF FINANCE UMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 Unrestrlcted Funds-2022 Balance 315t December Z022 £'OOD istJanuHry 2022 £'ooo Goins and 1055es Income Empendlture £'oTr) Transfer5 £,]0 £'ooo General funds Realised reserve Revaluation SerVe 1,680 6(K) 7,101 17.3941 215 53 1891 1,655 511 2,280 7.101 17,3941 215 1361 2,166 DeSnated Fund5 Diocesan Growth Fund Resources Centre 2,196 60 1361 12501 1.973 loo loo 199 Suttainability Fund Restore 275 77 1761 1771 Total Cornpany Designated 2.549 so 11891 103 12501 2,273 Cumbria Christian LearninE Restore (Cumbrial Rydal Hall Lifflited 15 203 315 1,281 12371 11,4071 93 24 1531 Total Group Designated Funds 2.767 1.656 11,8331 50 12501 2,390 Tolal fjroup Unrestricted Funds 5,047 8,757 19,2271 265 12861 4,556 The Dlocesan Growth Fund was created from a legacy from the late Miss A F Hope. It has been supplemented from the Mission Development grants from the Church Commissioners and transfers from Gerberal Fund5. The Fund is used to support the establishment of youth congregations and help parishes and deaneries initiate new work designed to achieve church growth. The Rydal Hall Fund represents the balance of Carlisle DBF'S investment in the subsidiary company, Rydal Hall Limited. The Net Zero Property Fund has been created in 2023, to build a fund to help finance the work required to reduce the carbon emissions in property owned by the DBF. in line with the Church of England's '2030 Net Zero, target. The Restore Icumbrial Fund represents the investment in the network of local shops through which this subsidiary charity, and local churches, provide community support and outreach for the local communities. The Sustainability Fund was created to build a fund towards the expenditure likely to be required in future years to fund changes to bring about more SLJStainable models of mission and ministry across the Diocese. 56
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 Restrirted Income Funds- 2023 Balan Hti JaThuary 2023 £'ooo Balance 311t Detember 2023 Gains and losses Income Expenditure Transfers £'ooo £'ooo £'ooo Barchester Fund Stlpends Income Fund Pastoral Account Diocesan Houses Fund Parish Property Fund Retlred Clergy & Dependants Income Fund Church Comtni55ioner5 Funds Other Restricted Income Funds 7,240 60 6,334 8,065 417 241 1631 11541 351 7,615 60 6,672 8,081 413 369 16 14 11931 48 114 1641 44 181 229 59 217 1451 14361 io 452 86 33 509 Tthal Group Restrlcted Income Funds 22,789 I,tK>2 18G31 11041 542 23,366 Restricted Inwme Funds- 2022 Balance at Iitjanuary 2022 £'OQD Balan 31* Oecember 202Z £'ooo Galns and losses £'ooo Income £'ODO Expenditure £'ooo Transfers Barchester Fund Stipend5 Incorne Fund Pastoral Account Diocesan Houses Fund Parlsh PronY Fund Retired Clergy & Depend3nt5 Income Fund Sundry Appeal Funds Other RestrlctÈd IncoTh Funds 7,821 60 5.786 8,736 463 252 1401 12091 15841 7,240 60 6,334 8,065 4J7 271 340 13 1.103 11,0411 17701 42 1591 1121 li 59 296 181 229 461 146 11071 1441 452 Total Group Restrirted Income Fund5 23,338 1.377 13601 lJ511 11,4151 22.789 The Barchester Fund comprises closed schools and school houses and their sale proceed5. These are held by the DBF and administered by the Diocesan Board of Education to support religious education and the work of Church schools in the Diotese. School Funds, of which Carlisle DBF is Custodian Trustee, are not included within the Barchester Fund as the DBF receives no benefit from these funds. The Stipends Income Fund is govemed by the Diocesan Stlpends Measure 1953, as subsequently amended, and is used to augment the clergy stipends. Its income comes from glebe and other Stipends Capital Account investments, asslgned fees and the Church Commissioners. The income Is included in the DBF'S General Funds in accordance with the stated accounting policy where it contribute5 towards the total cost of stipends which are paid from General Fund5. 57
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 310ecember 2023 The Diocesan Pastoral Account receives the sale proceeds of Churches and Parsonages which have become redundant under pastoral reorganisation. Its uses are governed by Section 94 of the Pastoral Measure 2011, and include grants and loans for Parsonage and Church provision, restoration. improvement or repair 2nd other purposes of the Diocese or any benefice or parish. The reserves are represented by investments with the Central Board of Finance and by loans to parishes. These assets are included under the appropriate headings in the DBF'S Balance Sheet. The Diocesan Houses Fund consists of th05e propertie5 Ill the legal ownership of Carlisle DBF las distinct from benefice houses) other than investment properties. The purchase of such properties is funded primarily from the Pastoral Account. The Parish Property Fund Iformerly Diocesan Loan Fund) is used to provide loan5 and grants to parishes for improvements and repairs to churches and other parish property. The Church.Commlssloners Funds relate to grant funding from the National Church, restricted for specific projects. Endowment Funds- 2023 Balance at 1st January Balance 31# December 2023 Galns and ID55es 2023 £'OOD Incorn& ExpÈndlture £'ooo Tran5fer5 £'fJJO £'ooo £'ooD Permanent Endowment Funds Stipends Capltal Fund Education PWM World Mission Readers Board General 21.611 41 94 1591 714 22,360 45 70 126 118 21,844 1591 716 22,595 Expendable Endowment Fund5 Parsonages Houses Fund Retired Cleriy & Dependants Fund 32.943 433 12401 12691 32,867 1,324 104 1,428 34.267 433 12401 12691 104 34,295 Ttstal Group Endowment Fund5 56,111 527 12991 12691 820 56,890 58
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMEMtS For the year ended 31 December 2023 Endowment Funds-20ZZ Balance at istrjanuary Balan¢E 31Jt December 2022 Galns and losses 2022 Income £'ooo Expendire E'ooo TrarleY$ £'ooo Permanent Endowmeni Funds stipends Capitsl Fund Education PWM World Missic*n Readers Bcard General 22,800 47 73 186 148 11,5231 21,611 41 143 1171 126 23.065 186 148 11.5551 21,844 Expendable Endowment Fufids Parsonages Houses Fund Retired Clergy & Dependants Fund 33.177 28 12621 32.943 1,478. 11541 1,324 34,655 28 12621 11541 34,267 Total Grwp Endowment Fund5 57.720 214 11141 11,7091 56,111 The Pemianent Endowment Funds are held where the DBF ha5 no power to convert the capital into income. The capital 15 invested and the income used for the purposes as indicated. The Diocesan Stipends Fund Capital Account is governed by Section 38 of the Church Property Measure 2018. It consists of investments with the Central Board of Finance and glebe properties and is held to produce income for clergy stipends. These assets are included under the appropriate headings in the DBF'5 Balance Sheet. The Parsonages Houses Fund represents those houses which are benefice property, vested in the incumbent5. Carli51e DBF nevertheless has financial responsibility for parsonages and they have been included in the Balance Sheet valued at deemed cost based on valuations at 31 December 2013. The Retired Clergy and Dependants Fund provides for the relief of poverty by a5SlSting retired clergv. licensed lay workers or deserted spouses of clergy who reside or served in the Diocese, and their dependants. 59
CARLISLE DIOCESAN BOARD OF FINANCE UMITED NOTESTO THE FINANCIAL" STATEMENTS FDr the year ended 31 December 2023 30. SUMMARY OF ASSEfs BY FUND Cgmpab)y Fixed Assets Tangible Investrnents Net Current Assets £'ooo Ilabilltles after I year £'o Nei Assets 2023 Net Asset5 2022 £'ooo Unre5trirted Funds General Funds 16 1,923 156 2,095 2,166 DeslBnated Fund$ Diocesan Growth Fund Resource5 Centre Rydal Hall Sustainablllty Fund et Zero Property Fund Re5tor2 2,072 89 2.161 1,973 210 309 214 25 210 309 214 25 loo 199 2.072 848 2,920 2.273 Restrirted Fund5 Barchester Fund stlpends Income Fund Pastoral Account Diocesan Houses Fund Parish Property Fund RÈtlred Clergy Incorne Church Commlssloners Other Funds .7,411 204 60 639 11,2151 1941 7,615 60 6,672 8,081 413 7.240 60 6,334 8.065 417 6,033 750 507 23 8,$46 io 127 io 509 229 452 382 8,546 15,106 12861 23,366 22,789 Permanent Endowment Funds Stipends Qpital Fund Education PWM World Misslon Readers Board General 21.191 45 70 1,169 22,360 45 70 21.611 41 64 118 118 126 21,426 1,169 22.595 21.844 Expendable Endowment Funds Parsonages Houses Fund Retired Clergy & Dependènts Fund 32,372 495 32,867 32,943 145 1,268 15 1.428 1.324 32,517 1,268 510 34,295 34,267 Total EndowmÈnt Funds 32,517 22,694 1.679 56.890 56,111 Total Company Funds 1,079 41,795 2.397 85.271 83.339 Unrestrlcted Funds Restore Rydal Hall Ltd 20 142 80 1831 100 1411 93 24 T¢xal Consolldated Funds 41.241 41,795 2,294 85,330 83,456 60
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTESTO THE FINANCIAL STATEMENTS For the year ended 31 Decèmber 2023 31. PENSIONS The DBF participates in two pensiork schemes administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the DBF and the other partScipating employers. One of these is the Church of England Funded Pensions Scheme for stipendiary clergy. The other is the Church Workers Pension Fund. The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity Section known as Pension Builder Classic and a cash balance sertion known as Pension Builder 2014. These schemes are multi-employer last man standing defined benefit pension schemes for which the DBF is unable to identify its share of the underlying assets and liabilities as each employer is exposed to artuarial risks 2ssoci3ted with the current and ft)rmer employees of other entitie5 participating is) the scheme. For multi-employer schemes where thi5 15 the case, paragraph 28.11 of FRS102 requires the DBF to account for pension costs on the basis of contributions actually payable to the scheme in the year and, where contributions are affected by a surplus or deficit in the scheme, to disclose information about the surplus or deficit and the implications of the surplus or deficit for the DBF. A valuation of each scheme is carried out once every three year5. Church of England Funded Pension Scheme With effect from l January 1998, diocesan clergy became members of the Church of England Funded Pensions Scheme. This defined benefit scheme provides benefits based on the National MlniTnum Stipend in the year before their date of retirement and provides for that part of the benefit that relates to pensionable seNice after l January 1998. Benefits are currently being accrued on the basis of half of the National Minimum Stipend INMSI being paid as the normal pension on reaching the age of 68 on completion of maximum service of 41.5 years, or 1.25 times this amount for archdeacons, plus a lump sum of three times the pension based on the previous yearfs NMS payable from the scheme. Pensions in respert of pensionable service before l January 1998 will be provided for by the Church Commissioners under the previous arrangements. At the end of the year the DBF was paying contributions for 84 members of the scheme out of a total membership of approximately 8,500 active members. Each participating employer in the scheme pays contributions at a common contribution rate applied to the previous yearfs National Minimum Stipend. As this is a multi-employer scheme and it is not possible to attribute the scheme's assets and liabilities to specific employers, the scheme pension costs are accounted for as if the scheme were a defined contribtjtion scherne and the pension cost charged to the Statement of Financial Activities Is the contributions payable for the year towards benefits earned in that year plus the impact of any deficit contributions (see below). The m05t recent scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560 million, based on 3Sset5 of £2,720 million and a funding target of £2,160 million, assessed using the following assumptions.. An average discount rate of 2.7% p.a.. RPI inflation of 3.6% p.a. land pension increases consistent with thisl- CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards; Increase in pensionable stipends in line with CPIH. Mortality in accordance with 90% of the S3NA VL tables, with allowance for improvements in mortality rates in line with the CM12020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% p.a. and an allowance for 2020 data of 0% {ie w2020 - 0%) 61
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Dècember 2023 Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from l Jarkuary 2023, since the Scheme was fully fijnded. The deficit recovery contributions under the recovery plan in force at each 31 December were as follows.. % of pensionable stipends 7.1% payable from January 2021 to December 2022 31 December 2021 31 December 2022 31 December 2023 Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as a liability- However, as there are no agreed deficit recovery payments from l January 2023 onwards, the balance sheet liability as at 31 December 2022 15 nil. The movement in the balance sheet liability over 2022 and over 2023 is set out in the table below. A reconciliation of the balance sheet liability. 2023 £'ooo 2022 rooo Balance sheet liability as at l January Deficlt contrlbution pald Interest cost Irecognised in the SOFA) Re-mea5urement of the balance sheet liability 148 1871 1611 Balance sheet liability as at 31 December This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for Dember 2023 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2022 since pensionable stipends for the remainder of the recovery plan were already known. Dernbel 2023 Oecember 2022 December 2021 Discount Rate nla nla 0.0% pa nla Price Inflation nla nla Increase to total pensionable salary n/a -1.5% pa The legal structure of the scheme 15 such that if another Responsible Body fails, Carlisle DBF could become responsible for paying a share of that falled Responsible Bodls pension liabilities. 62
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 Church Workers Penslon Fund- Defined Benefits Scheme The Defined Benefits Scheme I"DB5'1 section of the church Workers Pension Fund provide5 benefits for lay staff based on final pensionable salaries. At 31 December 2023, the DBF has l active member. 13 deferred and 31 pensioner members in the scheme. It is not possible to attribute the scheme's assets and liabllltles to specrfic employers, since each employer, thrDugh the Life Risk Pool, is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. In such cases FR5102 requires the scheme pension costs to be accounted for as if the scheme were a defined contribution scheme and the pension cost charged to the Statement of Financial Activities is the contributions payable for the year towards benefit5 earned in that year1£43,QM)O over 2023 compared to £49,000 over 20221 plus the impact of any deficit contributions (see belowl. For funding purposes. the DBS 15 divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retlrement Investment returns. The division of the DBS into sub-poo15 is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the D8S 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. If, follgwing an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool and the Actuary so recommends, further transfers may be made from the Life Risk Pool to the employers, sub-poo15. or vice versa. The amounts to be transferred land their allocation between the 5ub-poolsl will be settled by the Church of England Pensions Board on the advice of the Actuary. A valuation of the DBS is carried out once every three years, the most recent having been carried out a5 at 31 December 2022. The overall surplus in the DBS was £73.6m. Following the valuation. the DBF has entered into an agreernent with the Church Workers Pension Fund to a contribution rate of 37.9Yo of pensionable Salaries. 2023 rooo 2022 £'ooo Balance Sheet liability as at l January Contributions paid Interest cost IrecoBnised in the SOFA) Re-measurement of the balance sheet Ilabillty Balance sheet liability as at 31 December A consultation 15 currerbtly underway with a view to employers (mainly Diocesan Boards of Finance) to discontinue this pension scheme with a buy-out and active members having their pension provision changed. This is likely to result in some level of surplus being released that could fund a pensions contribution holiday in the future, but values are unknown until the consultation is completed and any buy-out finalised. 63
CARLISLE DIOCESAN BOARD OF FINANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 32. CAPITAL COMMITMENTS Group expenditure contracted for but not Provided on the financial statements was £12,000 Icharlty.. £nlll 12022.. £25,000- Charily £nill. RELATED PARTY TRANSACTIONS Details of transactions with the main related parties of Carlisle OBF are given in the appropriate notes to the financial statements. Archblshops. Council and the Chur¢h Commlssloners As detailed in note 2 Carllsle DBF received grants from the Archbishops, Council totallin8 £1,235.00012022'. £1,366,000). £49,Th)012022.. £35,0001 was received from the ChurEh Commissioners fcFr rent Df thè Bishop's House. Payments were made to Ehe Archbishops, Council for contributions to the National Church and for training of Ordinands totalling £514,00012022: £527.(M)ol. Payments of £2,486,00012022.. £2.432.0001 were rnade tg the Church Cijmmissioners ft)r clergy stipends and the Church of England Penslons Board was paid £545,00012022.. £770,0001 for clergy pension5. £52,00012022.. £61,OWI of clergy pensions wa5 Outstanding at the year end. Furiher payments were made to the Pensions Board for lay pensions of £320,000 12022.. £297,000). The balance due to the Pensions Board at the year-end for Decemberfs contributions was £21,000 12022.. £29.0001. Rydal Hall Ltd lsee note During the year Carllsle DBF Involced Rydal Hall Ltd £nil12022'. £45.0001 for rent and £nil12022.. £8,0001 for management seNices. Carlisle DBF rnade grants of E43.000 to Rydal Hall Ltd in 2022 IEnS11 in support of new accommodation investment and it5 501ar panel project. At the year-end Rydal Hall Ltd owed £.175,00012022'. £137,000? for outstsnding staff salarips and expenses. Rydal Hydro Ltd Isee note 161 Rent of E24.00012022'. £36,0001 and divldends of £175.00012022: £119,000) were received frorn Rydal Hydro Ltd. Scandale Hydro Ltd Dividends of £187.00012022.' £135,0) were received from Scandale Hydro Ltd, of which Carlisle DBF owns one-third of thè shares. Cumbrla Chrlstian Learning Limited Cumbria Chr15tlan Learning has been dormant since l January 2022 and no trarb5aCtion5 occurred nor year-end balances exlsted at 31 December 2022 or 2021. 64
CARLISLE DIOCESAN BOARD OF FINANCE LIMITE NOTES TO ThE FINANCIAL 5TATEMEwrs For the year ended 31 December 2023 33. RELATED PARTY TRANSACTIONS Icontlnuedl Restore ICumbrlal- (see note 171 On l July 2020. the activities and net asset of OpShops- fomierly an activity carried out within the Carli51e DBF were transferred for a consideration of £nil, into a previously dorFnant subsidiary charity- ntsw called Restore Icumbrial. In 2023, grants of £40.0(M)12022= 77,0001 were made from the Carlisle DBF to Restore. At the year-end, Restore owed £S,00012022'. E25.0001 to Carlisle DBF for outstandlng expenses paid on thelr behalf. DBE Services Ltd Carlisle DBF received gift aid distributions from OBE Services Iwhich isjointly owned bythe North West Di0Se$l totalling £50.012022, £10,0001. 65