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2020-12-31-accounts

Diocesan Trustees (Oxford) Limited

Directors’ Report and Financial Statements For the year ended 31 December 2020

Company Registration No. 867729 (England and Wales) Charity Registration No. 253575

Registered & Principal Office: Church House Oxford Langford Locks Kidlington Oxford OX5 1GF

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

Table of Contents

able of Contents
Page
Directors’ Annual Report 2
Independent Auditor’s Report 10
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18

GLOSSARY

DEFINITIONS

1

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

DIRECTORS’ ANNUAL REPORT 2020

The directors, who are also trustees for the purposes of charity law, present their annual report, together with the audited financial statements, for the year ended 31 December 2020. In so doing, we wish to start by recording our huge sadness that our Chairman, His Honour Charles Elly, died on 27 March 2021 within days of having been actively engaged in DTOL business. He brought clear leadership and gave painstaking attention to ensuring that the work of DTOL, in fulfilling the wishes of parishes for which DTOL acts as custodian trustee and in carrying out its other trust responsibilities, was effective and efficient, and we are so grateful for that.

OBJECTIVES AND ACTIVITIES

The Charity exists to promote the work of the Church of England in the Diocese of Oxford for the advancement of the Christian religion and to that end to accept and administer property of any kind to be held in trust as appropriate.

The Charity aims to provide the following services in support of the Church of England in the Diocese of Oxford by fulfilling the roles of:

Diocesan Authority and Custodian Trustee

As Diocesan Authority, the Charity administers trusts set up after the date of incorporation and administers trusts on behalf of ODBF, in accordance with the Parochial Church Councils (Powers) Measure 1956 or the Incumbents and Churchwardens (Trusts) Measure 1964. As Custodian Trustee, the Charity holds the investments of permanent or expendable endowments. In acting as Diocesan Authority or Custodian Trustee, the Charity assists the managing trustees in the administration of trusts, including the implementation of investment instructions, production of the annual statement of funds, provision of advice in conjunction with the Diocesan Registrar and the safe keeping of legal documents and title deeds. A financial summary of each trust fund, prepared on a receipts and payments basis, is issued to the managing trustees by the Finance Department at Church House Oxford. The Charity is also the Diocesan Authority or Custodian Trustee for parish and ecclesiastical/educational trusts within the Diocese whose assets are land and buildings.

As Diocesan Authority or Custodian Trustee, the Charity oversaw the investments of 665 trusts ( 2019: 667 ) with a total value of £75 million at the end of 2020 ( 2019: £61.7 million ). A total of £15k of additional capital was accepted during 2020 ( 2019: £0.6 million ). Neither the capital nor the income relating to these trusts are included in the Charity’s financial statements. It is the responsibility of managing trustees to include their financial and property assets and income in the annual accounts of their Parochial Church Council (PCC) or other charitable trusts.

2

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

OBJECTIVES AND ACTIVITIES (cont’d)

Sole Trustee

The Charity is the Sole Trustee of all the trusts that are included in the financial statements. The principal trust is the Church Schools Uniform Statutory Trust (CSUST). This fund arises from the disposal proceeds or rent of closed schools and school houses in the Diocese and is administered by the Charity in consultation with ODBE under the terms of trust set out in note 12 of the financial statements. CSUST supports the work of ODBE, which exists to fulfil the statutory duties of the Diocese of Oxford for the education of children in the Diocese in accordance with the Diocesan Boards of Education Measure 1991 (as amended), by:

ACHIEVEMENTS AND PERFORMANCE

Diocesan Authority and Custodian Trustee

The Charity has successfully performed its role as Diocesan Authority or Custodian Trustee during 2020 and has contributed to the public benefit delivered through the ecclesiastical parishes within the Diocese by assisting PCCs and other local church trustees, who act as the managing trustees, in the administration of trusts, including the implementation of investment instructions, production of the annual statement of funds, provision of advice in conjunction with the Diocesan Registrar and the safe keeping of legal documents and title deeds. Parishes generally contribute to the public benefit by:

Sole Trustee and Managing Trustee

The Charity has successfully performed its role as the sole trustee of CSUST during 2020. It has contributed to the public benefit delivered through the Church of England schools, with some 60,000 pupils across the Diocese, by contributing to the cost of providing educational services and support to schools in accordance with the Diocesan Boards of Education Measure 1991. Therefore, it has helped to promote:

3

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

OBJECTIVES AND ACTIVITIES (cont’d)

FUTURE PLANS

The directors intend to continue to perform the core roles of Diocesan Authority and Sole Trustee as explained above with no significant changes to the Charity’s strategy or activities planned for the foreseeable future. The value of investments held in connection with the role of Sole Trustee may be subject to volatility in the short term due to Covid‐19 and other factors. However, the DT(O)L investments are held for the long term and so there is not a significant immediate impact on the work of DT(O)L.

4

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

FINANCIAL REVIEW

Overall result

The net expenditure before investment gains for the year was £33K ( 2019 net income:£296K ) with an overall net increase in funds for which the Charity acts as trustee of £501K ( 2019: £1,725K ), after taking account of £751K unrealised gains on investments ( 2019: £1,429K ).

Investment performance

The total value of funds, based on balance sheet totals, for which the Charity acts as managing trustee increased to £11,147K at 31 December 2020 from £10,646K at 31 December 2019 . Of these funds £10,873K ( 2019: £10,384K ) were funds of CSUST consisting of Endowment Funds of £8,967K £ ( 2019: £8,536K ) and Accumulated Income Funds of £1,906K ( 2019: £1,848K ). (See note 14 to the financial statements).

During the year the CBF Investment Funds increased in value, by 7% ( 2019: 18% ) and Charifund units decreased in value by 13% ( 2019: increase 17% ). However most of the Charifund units were sold. These two investment holdings comprised 71% of the total investments as at 31 December 2020 ( 2019: 79% ).

The capital values of investments increased during 2020 by 3.9% (2019: increased by 17.5%), a year in which the FTSE 100 index decreased by 14.3% ( 2019: increase 12.1% ). The directors continue to take advice on how best to balance capital risk against maintaining income in the medium to long term.

Investment policy

The Charity has the power to make any investments, which the directors deem fit, and which further the Charity’s aims.

The principles governing investment are generally driven by a need to be cautious to risk, balanced by a requirement to maximise long‐term total returns. Risk is reduced by investment in shares and bond funds through investment vehicles such as investment companies, common investment funds and unit trusts. The investment policy aims to maintain a total return of both income and capital that meets both current needs and longer‐term capital needs over a 5 to 10 year timescale.

Investments are in funds that, in the majority, have a policy of acting in a socially responsible manner and which have ethical policies that are, as far as possible, in line with the Charity’s policies and objectives.

Reserves policy

Due to the nature of the Charity’s activities, its net assets represent either endowment or restricted funds. As the Charity acts principally as a trustee with no general funds of its own, and as ODBF bears the cost of administration as detailed in note 16 to the financial statements, no free reserves need to be maintained to sustain the Charity.

Grant making policy

The Charity makes grant payments as Managing Trustee in accordance with the terms of each trust, as appropriate.

5

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

FINANCIAL REVIEW (cont’d.)

Risk management

The directors confirm that the major risks to which the Charity is exposed have been reviewed and systems have been established to manage those risks. The risk management strategy comprises an annual review of risks which the Charity may face, the establishment of systems and procedures to manage identified risks and the implementation of the procedures designed to minimise any potential impact on the Charity should those risks materialise.

The principal risks are that investment income may fall and that investments may lose their value and thereby render the various trusts unable to meet their charitable objectives. Whilst the risks inherent in investment markets remain, the directors mitigate the risk by the implementation of the investment policy described earlier in this report and the regular review of investment performance by the Trustees Investment Committee (TIC).

The Charity has insurance to indemnify the directors and officers against the consequences of any neglect or default on their part. The cover provided is up to £1,000,000.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Diocesan Trustees (Oxford) Limited (the Charity) is a Trust Corporation incorporated in England and Wales on 30 December 1965 as a charitable company limited by guarantee (Company Number 867729), which is governed by its Memorandum and Articles of Association and is a registered charity (Charity Number 253575).The members of the company are the directors. In the event of the charitable company being wound up, each member has guaranteed to contribute a maximum of £1. The Charity is not liable to Corporation Tax on its gains and income as the gains and income are applied for charitable purposes.

Board and Committee structure

The directors, who are also the trustees for the purposes of charity legislation, usually meet four times a year. During 2020 four meetings were held. In addition, the Trustees’ Investment Committee (TIC) is responsible for considering matters relating to the Church Schools Uniform Statutory Trust (CSUST) investments and for making recommendations to the directors. The committee comprises the chairman and up to three other directors, including one representative of ODBE. The committee meets as necessary. The committee met twice during the year.

6

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (cont’d.)

Appointment of Directors

The directors comprise up to:

Up to three additional members may be co‐opted. Two further persons may be co‐opted from time to time by the directors. Directors normally serve for a three year term linked to Synodical elections.

Directors receive induction training when first appointed and ongoing training as appropriate.

Directors’ responsibilities

The directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the net income and expenditure of the company for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Where the Charity acts as the Sole Trustee, the directors are responsible for keeping proper accounting records of monies that disclose fairly and reasonably the financial position of those funds. Where the Charity acts as Diocesan Authority or Custodian Trustee, the accounting records are under the control of the managing trustees of each relevant trust.

7

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (cont’d.)

Key management personnel

The overall responsibility for the company rests with the directors who regard themselves as the key management personnel. No director received any remuneration from the company ( 2019: none ).

Related parties

The directors consider the following to be related parties:

Transactions with related parties are disclosed in note 16 to the financial statements.

Public benefit

The directors have complied with section 4 of the Charities Act 2011 having due regard to guidance published by the Charity Commission. The manner in which the charitable company provides public benefit is articulated in the achievements section of this report.

Funds held as the Diocesan Authority or as Custodian Trustee

The directors recommend that the managing trustees of trust funds should review periodically the investments held for trusts taking professional investment advice, as appropriate. Cash and investments are held separately for each trust.

REFERENCE AND ADMINISTRATIVE DETAILS

The following were the directors at the date of this report. All have served throughout the year except where indicated otherwise:

Director Basis of appointment
Mr J C H Anelay Archdeaconry of Oxford
Mr G S Anderson JP* ODBE nominated
The Revd A T Bond Archdeaconry of Berkshire
Mr B Crawford* Archdeaconry of Dorchester
The Right Revd Dr S J Croft Ex Officio, The Bishop of Oxford
Mr S D Downer Archdeaconry of Berkshire
His Honour R C Elly*(Chairman) to 27/3/21 Archdeaconry of Berkshire
Mr D P Lillycrop Archdeaconry of Buckingham
Mr M B Powell Archdeaconry of Dorchester
The Revd J P St John Nicolle Archdeaconry of Dorchester
The Revd J H Tattersall* Ex Officio ‐ ODBF Chairman
Mr E L S Weiss Archdeaconry of Buckingham

* Member of the Trustees’ Investment Committee (TIC).

8

Diocesan Trustees (Oxford) Limited Directors, Report and Financial Statements For the Year Ended 31 December 2020 REFERENCE AND ADMINISTRATIVE DETAILS (Cont'd.) Secretary.. Canon M Humphri5s is responsible for the day-to-day management of the Charity. Registered Office Church House Oxford, Langford Locks, Kidlington, Oxford, OX5 IGF Bankers National Westminster Bank plc, 32 Cornmarket Street, Oxford OXI 3EZ Auditors Buzzacott LLP, 130 Wood Street, London, EC2V 6DL Solicitors Winckworth Sherwood LLP, 2 Chawley Park, Cumnor Hill, Oxford OX2 9GG Insurers Ecclesiastical Insurance Office plc, Beaufort House, Brunswick Road, Gloucester GLI IJZ BASIS OF PREPARATION This report has been prepared in accordance with applicable United Kingdom Accounting Standards, the Companies Act 2006. and Accounting and Reporting by Charities- Statement of Recommended Practice. STATEMENT OF DISCLOSURE TO AUDITOR As far as each director is aware, there is no relevant audit information of which the Charity's auditor is unaware. Each director has taken all the steps helshe ought to have taken as a director in order to make himselflherself aware of any relevant information and to establish that the Charitvs auditor is aware of that information. By order of the directors.. G S Anderson JP Acting Chairman 10 May 2021

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT to the Members of Diocesan Trustees (Oxford) Limited

Opinion

We have audited the financial statements of Diocesan Trustees (Oxford) Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the notes to the financial statements including the principal accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

10

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT (cont’d.)

Other information

The directors are responsible for the other information. The other information comprises the information included in the Directors’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

11

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT (cont’d.)

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non‐compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non‐compliance with laws and regulations, was as follows:

12

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT (cont’d.)

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non‐compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non‐compliance. Auditing standards also limit the audit procedures required to identify non‐ compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

13

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

INDEPENDENT AUDITOR’S REPORT (cont’d.)

Use of our report

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

Amanda Francis (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

27 May 2021

14

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) for the Year Ended 31 December 2020

Note
Income and Endowments from:
Donations
2
Investments
3
Other sources
4
Total
Expenditure on Charitable Activities:
Grants
5a
Other
5b
Total
Net income (expenditure) before
investment gains/(losses)
Realised losses on investments
6
Unrealised gains on
investments
6
Net income and net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£’000
115
‐
‐
115
‐
(115)
(115)
‐
‐
‐
‐
‐
‐		 Restricted
Funds
£’000
‐
392
190
582
(451)
(25)
(476)
106
(123)
76
59
1,954
2,013		 Endowment
Funds
£’000
‐
‐
‐
‐
(139)
‐
(139)
(139)
(94)
675
442
8,692
9,134		 Total
2020
£’000
115
392
190
697
(590)
(140)
(730)
(33)
(217)
751
501
10,646
11,147		 Total
2019
£’000
109
412
406
927
(452)
(179)
(631)
296
‐
1,429
1,725
8,921
10,646

The Statement of Financial Activities (SOFA) include all gains and losses recognised in the year. All income and expenditure derives from continuing activities. The prior year comparative SOFA for 2019 is shown in Note 20 on page 31. The notes on pages 18 to 31 form part of these financial statements.

15

Diocesan Trustees (Oxford) Limited Directors, Report and Financial Statements For the Year Ended 31 December 2020 BALANCE SHEET as at 31 December 2020 Company No. 867729 (England and Wales) 2020 2019 £'ooo £'ooo Note FIXED ASSETS Investments 10,328 9.936 CURRENT ASSETS Debtors due after more than one year Debtors due within one year Cash at bank 115 116 164 168 685 746 Total Current Assets 964 1.030 Creditors: Amounts falling due within one year 1941 (269) Net Current Assets 870 761 Total Assets Less Current Liabilities 11,198 10.697 Credltors.. Amounts falling due after more than one year io {511 {51J NET ASSETS 11,147 10,646 FUNDS Permanent Endowment Funds li 99 93 Expendable Endowment Funds 12 9,035 8,599 9,134 8.692 Restricted Funds 13 2,013 1,954 11.147 10.646 The notes on pages 18 to 31 form part of these financial statement5. Included in the above are unreali5ed valuation gains amounting to £5,651K12019.- £5.173K). See notes 11 to 13 to the financial statements. The financial statements were approved and authorised for issue by the directors on 10 May 2021 and slgned on their behalf by G S Anderson JP Acting Chairman Dirertor 16

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

STATEMENT OF CASH FLOWS for the year ended 31 December 2020

Net cash used in operating activities (Below A)
Cash flows from investing activities
Dividends and interest received from investments
Purchase of investments
Proceeds from sale of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December(Below B)
A. Reconciliation of net movements in funds to
net cash flow used in operating activities
Net movement in funds
Adjustments for:
Realised losses on investments
Unrealised gains on investments
Dividends and interest receivable from investments
Decrease in debtors
Decrease in creditors (ex loans)
Net cash used in operating activities
B. Analysis of cash and cash equivalents
Cash at bank		 2020
£’000
£’000
(595)
393
(615)
757
534
(61)
746
685
501
217
(751)
(392)
5
(175)
(595)
685		 2020
£’000
£’000
(595)
393
(615)
757
534
(61)
746
685
501
217
(751)
(392)
5
(175)
(595)
685		 2020
£’000
£’000
(595)
393
(615)
757
534
(61)
746
685
501
217
(751)
(392)
5
(175)
(595)
685		 2019
£’000
£’000
(188)
412
(365)
‐
47
(141)
887
746
1,725
‐
(1,429)
(412)
28
(100)
(188)
746		 2019
£’000
£’000
(188)
412
(365)
‐
47
(141)
887
746
1,725
‐
(1,429)
(412)
28
(100)
(188)
746		 2019
£’000
£’000
(188)
412
(365)
‐
47
(141)
887
746
1,725
‐
(1,429)
(412)
28
(100)
(188)
746
(61)
746		 (141)
887
746
1,725
‐
(1,429)
(412)
28
(100)
(188)
746
685
501
217
(751)
(392)
5
(175)
(595)
685

17

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Principal Accounting policies

Diocesan Trustees (Oxford) Ltd (DT(O)L) is a company limited by guarantee (No.867729 (England and Wales)) and a registered charity (No. 253575) governed by its Memorandum and Articles of Association, incorporated in England. Its registered office is Church House Oxford, Langford Locks, Kidlington, Oxon OX5 1GF.

Basis of accounting

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2020 with comparative information provided for the year to 31 December 2019 .

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest thousand.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the directors and management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

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Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Principal Accounting Policies (cont’d.)

Going concern

The directors have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The directors have made this assessment with respect to a period of at least one year from the date of approval of these financial statements including the estimation of future income and expenditure cash flows for going concern purposes. The directors have concluded that whilst there are economic uncertainties related to the continuing Covid‐19 pandemic, these do not cast doubt on the ability of the Charity to continue as a going concern. The directors are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. This is because the Charity has sufficient monetary assets, including short term cash balances, which could be readily realised to meet liabilities should there be an unexpected curtailment of income.

Income

Income is recognised in the period in which the Charity is entitled to receipt, the amount can be measured reliably, and it is probable that the funds will be received.

Income comprises donations, income from listed and property investments and income relating to closed school sites.

Donations comprise gifts in kind which represent the actual cost of administering the Charity incurred by ODBF. Such gifts in kind are also shown as charitable expenditure.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Rent receivable is recognised on an accruals basis determined under the relevant licences to occupy and leases.

Income from the sale of closed school sites (see below) is recognised upon receipt of funds after the sale of the site is completed.

Closed school premises

The land and buildings of a number of closed church schools are vested in CSUST. The future of these sites is uncertain as to use and retention. Where such sites are eventually sold, the proceeds may need to be apportioned between CSUST and a Local Authority and/or other parties. As such assets have no meaningful value during this period of uncertainty, they are not valued for the purpose of these financial statements.

Rental income from closed school premises is recognised in these accounts when receivable (see above).

Expenditure

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT.

19

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Principal Accounting Policies (cont’d.)

Expenditure comprises expenditure on the Charity’s primary charitable purposes as described in the directors’ report including the payments of grants. The expenditure includes both costs that can be allocated directly to such activities and those indirect costs necessary to support them.

Grants payable are included in the statement of financial activities when approved and when committed. Commitment will usually arise when the intended recipient has either received the funds or been informed of the decision to make the donation.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market bid‐price.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Apart from fixed asset investments held at fair value, these are recognised initially at transaction value and subsequently measured as described below.

Debtors

Debtors are recognised at their settlement amount, less any provision for non‐recoverability. Prepayments are valued at the amount prepaid.

The amounts recoverable from the sale proceeds of closed schools (see note 8) represent professional fees and other costs incurred in respect of those school land and buildings and are recoverable from the disposal proceeds once sold.

It should be noted that there is no certainty about when these sums will be received, but it is deemed appropriate to include the full amounts as debtors in order to preserve the right to recovery should the opportunity arise. If and when any such items become clearly irrecoverable, they are written off as expenditure (see critical estimates and areas of judgement above).

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

20

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Principal Accounting Policies (cont’d.)

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the Charity anticipates it will pay to settle the debt.

Fund structure

The unrestricted funds comprise those monies which may be used towards meeting the charitable objectives of the Charity and may be applied at the discretion of the directors.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

The endowment funds comprise assets which normally must be held as capital (permanent) but, where permitted, may be applied towards meeting certain charitable aims (expendable). The income therefrom is used either in accordance with the donors’ wishes, if stipulated, or for general purposes.

Custodian funds

Funds held by the Charity on behalf of various trusts and over which the Charity has no power to make management decisions are classified as custodian funds and are not included in the financial statements. Instead, a description of the funds held is disclosed in the directors’ report.

21

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

2. Income from Donations

Gifts in kind in respect of the administrative services and
governance donated by ODBF		 2020
£’000
115		 2019
£’000
109

In both the above years, income from donations related to unrestricted funds.

3. Income from Investments

ncome from Investments
Dividends receivable
Interest receivable
Rents receivable		 2020
£’000
283
3
106
392		 2019
£’000
292
6
114
412

In both the above years, income from investments related to restricted funds.

4. Income from Other Sources

ncome from Other Sources
Surplus on disposal of Great Haseley closed school site
Write back of property maintenance costs re Dominic Barberi
school site		 2020
£’000
‐
190
190		 2019
£’000
406
‐
406

The write back on the Dominic Barberi school site relates to restricted funds and arises due to a change in the tenant at the site. The surplus on disposal of Great Haseley relates to endowment funds.

22

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

5. Expenditure on Charitable Activities

a) Grants

TES TO THE FINANCIAL STATEMENTS (cont’d.)
xpenditure on Charitable Activities
) Grants
Grants to ODBE
Grants to Oxford Diocesan Schools Trust
Grants of £5,000 or less
Total grants payable		 2020
£’000
531
50
9
590		 2019
£’000
446
‐
6
452

The above grants are from restricted funds, apart from £89K (2019: £87K) grant to ODBE and a £50K (2019: £nil) grant to ODST from endowment funds.

b) Other

) Other
Administration provided by ODBF
Governance costs borne by ODBF
Total Unrestricted Funds
Property Maintenance
Administration of Funds and Grants
Old debts written off and bad debt provision
Total Restricted Funds (2019 Restricted and Endowment)
Total Other Charitable Expenditure		 2020
£’000
97
18
115
17
8
‐
25
140		 2019
£’000
94
15
109
7
33
30
70
179

None of the above £25K relates to endowment funds (2019: £2K of the £70K related to Endowment Funds).

Governance costs are borne by ODBF and form part of the costs recognised in these financial statements and part of the related gift in kind (note 2). Governance costs represent staff costs in relation to governance (including directors’ expenses), committee costs, audit fees and legal costs.

The audit fees were £6K ( 2019: £6K ). Directors comprise the key management of the charity but received no remuneration in either year. One director received reimbursement of travel expenses totalling £0.1K during the year ( 2019: £0.3K ).

23

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

6. Investments
Restricted
Funds
Endowment
Funds
£000
£000
Market value at 1 January
1,402
8,534
Additions at cost
426
189
Disposals ‐ sale proceeds
(431)
(326)
Realised losses
(123)
(94)
Unrealised gains in year
76
675
Market value at 31 December
1,350
8,978
Historical cost of investments
1,140
3,537
Analysis of investments at 31 December 2020:
CBF – Investment Fund shares
CBF – Global Equity Fund Income shares
CBF – Property Fund shares
M&G Charifund units
COIF Ethical Accumulation shares
Charities Property Fund
All of the invested funds are held within the UK.
7. Debtors due after more than one year
Loans advanced to ODBE (see below)
Amounts recoverable from proceeds of closed schools
Other loans		 Restricted
Funds
£000
1,402
426
(431)
(123)
76		 Endowment
Funds
£000
8,534
189
(326)
(94)
675		 2020 Total
£000
9,936
615
(757)
(217)
751		 2019 Total
£000
8,142
365
‐
‐
1,429
1,350 8,978 10,328 9,936
1,140 3,537 4,677 4,763
Total
£’000
7,320
1,921
194
3
261
629
10,328
2020
£’000
100
10
5
115		 Holding
%
71
19
2
‐
2
6
100
2019
£’000
100
11
5
116

The loan to ODBE was advanced to assist with cash flow and is interest‐free with no fixed repayment date.

24

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)
8. Debtors due within one year
Interest receivable
Amounts recoverable from proceeds of closed schools
Other
9. Creditors: amounts falling due within one year
Remedial works due
Amounts due to Local Authorities
Rent received in advance
Other		 2020
£’000
25
138
1
164
2020
£’000
‐
35
1
58
94		 2019
£’000
25
138
5
168
2019
£’000
190
35
41
3
269

The creditor for remedial works due referred to the former Cowley St John School where the tenant was responsible for ensuring that certain remedial work was completed. The tenant has now left and there is no longer a liability for these costs.

10. Creditors: amounts falling due after more than one year

reditors: amounts falling due after more than one year
2020 2019
£’000 £’000
Amounts due to Local Authorities 51 51

25

Diocesan Trustees (Oxford) Limited

For the Year Ended 31 December 2020

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

11. Permanent Endowment Funds

ermanent Endowment Funds
Bishop of Oxford’s Discretionary Fund
Caversfield – F. Sharpe Bequest
Streatley – Judd Bequest
Woolhampton – James Blyth Charity Trust
Woolhampton – Misses Blyth‐Currie Trust		 Balance at
1 January
2020
£000
23
3
4
49
14
93		 Investment
Gains
£000
2
‐
(1)
4
1
6		 Balance at
31 December
2020
£000
25
3
3
53
15
99

Included in the balance at 31 December 2020 is £88K ( 2019: £82K ) of unrealised investment gains.

26

Diocesan Trustees (Oxford) Limited

For the Year Ended 31 December 2020

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

12. Expendable Endowment Funds

CSUST
Bartlett Memorial Fund		 Balance at
1 January
2020
Income
Expenditure
Investment
Gains
£000
£000
£000
£000
8,536
‐
(139)
570
63
‐
‐
5		 Balance at
31 December
2020
£000
8,967
68
8,599
‐
(139)
575		 9,035

Included in the balance at 31 December 2020 is £5,353K ( 2019: £4,844K ) of unrealised investment gains.

This fund's capital arises from the sale proceeds of closed schools and school houses within the Diocese. In addition to these funds, the land and buildings of five closed church schools or school houses are vested in CSUST. The future of these sites is uncertain as to use and retention. Even where these are to be eventually sold, the proceeds are usually apportioned between CSUST and the relevant Local Authority and/or other parties. Therefore it is inappropriate to place any particular value on these sites for balance sheet purposes.

The funds shown do not include sale proceeds of schools and school houses where these are held by solicitors pending an order and/or determination.

Both the capital and income may be used for defraying costs incurred in connection with sales of closed schools and for the purchase of a site, building, improving or maintaining Church of England schools and school houses in the Diocese. The income may also be used for advice, guidance and resources regarding the management and education provided, carrying out inspections in connection with such a school and the employment of staff in connection with the administration of the Trusts.

This fund is administered by the company in consultation with ODBE. A summary of all CSUST funds is provided in note 14 below.

 The Bartlett Memorial Fund

This fund was raised in 1929 as a memorial to the late Revd W.J.G. Bartlett, formerly Diocesan Missioner. Both the capital and income may be used for the provision of a Diocesan Retreat House. Income may also be used to help parishes in any special evangelistic effort or to assist individuals with the cost of going on retreat.

27

Diocesan Trustees (Oxford) Limited

For the Year Ended 31 December 2020

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

13. Restricted Funds

CSUST
Bartlett Memorial Fund
Bishop of Oxford’s Discretionary Fund
Caversfield – F. Sharpe Bequest
Woolhampton – James Blyth Charity Trust
Woolhampton ‐ Misses Blyth ‐Currie Trust
Tackley CE School		 Balance at
1 January
2020
£000
1,848
59
12
5
23
5
2
1,954		 Income
£000
576
3
1
‐
2
‐
‐
582		 Expenditure
£000
(466)
(3)
(7)
‐
‐
‐
‐
(476)		 Investment
(losses)
gains
£000
(52)
3
1
‐
1
‐
‐
(47)		 Balance at
31 December
2020
£000
1,906
62
7
5
26
5
2
2,013

Included in the balance for income funds at 31 December 2020 is £210K ( 2019: £247K ) of unrealised investment gains. The majority of these funds represent unexpended income arising from the endowment funds described in Notes 11 and 12 above.

Tackley C.E. School

The fund comprises rent received from Tackley pre‐school and interest thereon. The income is to be used for the benefit of the school.

Descriptions of the other funds may be found in notes 11 and 12 above.

14. CSUST Funds Summary

SUST Funds Summary
Expendable
Endowment (Note
12)
Restricted (Note 13)
Total		 Balance at
1 January
2020
£000
8,536
1,848
10,384		 Income
£000
‐
576
576		 Expenditure
£000
(139)
(466)
(605)		 Investment
gains
(losses)
£000
570
(52)
518		 Balance at
31 December
2020
£000
8,967
1,906
10,873

28

Diocesan Trustees (Oxford) Limited

For the Year Ended 31 December 2020

Directors’ Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

15. Analysis of Net Assets Between Funds
Investments
Permanent Endowment
Funds:
£000
Bishop of Oxford’s
Discretionary Fund
25
Caversfield – F. Sharpe
Bequest
3
Streatley – Judd Bequest
3
Woolhampton – James
Blyth Trust
53
Woolhampton – Misses
Blyth‐Currie Trust
15
99
Expendable Endowment
Funds:
CSUST
8,811
Bartlett Memorial Fund
68
8,879
Total Endowment Funds
8,978
Restricted Income
Funds:
CSUST
1,275
Bartlett Memorial Fund
49
Bishop of Oxford’s
Discretionary Fund
3
Caversfield – F. Sharpe
Bequest
‐
Woolhampton – James
Blyth Trust
18
Woolhampton – Misses
Blyth‐Currie Trust
5
Tackley CE School
‐
1,350
Total Funds
10,328		 Cash
£000
‐
‐
‐
‐
‐
‐
119
‐
119
119
534
13
4
5
8
‐
2
566
685		 Debtors
£000
‐
‐
‐
‐
‐
‐
138
‐
138
138
141
‐
‐
‐
‐
‐
‐
141
279		 Creditors
£000
‐
‐
‐
‐
‐
‐
(101)
‐
(101)
(101)
(44)
‐
‐
‐
‐
‐
‐
(44)
(145)		 Total
2020
£000
25
3
3
53
15
99
8,967
68
9,035
9,134
1,906
62
7
5
26
5
2
2,013
11,147		 Total
2019
£000
23
3
4
49
14
93
8,536
63
8,599
8,692
1,848
59
12
5
23
5
2
1,954
10,646

29

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

16. Related party transactions

Administration is carried out by ODBF free of charge. The receipt of this service is classified by the SORP as a gift in kind valued at £115K ( 2019: £109K ) (see Note 2). The cost is included in charitable activities (Note 5b). Included in these administrative costs are staff costs of £64K ( 2019: £63K ). There are some investment management costs that are incurred by ODBF but they are not material and have not been separately analysed in the Statement of Financial Activities.

At the year‐end there was a balance of £8K due to ODBF ( 2019: 3K ).

Grants totalling £531K were made to ODBE in the year ( 2019: £446K ) to support the work of this charity. (see Note 5a). A balance of nil ( 2019: £nil ) was due at the year end.

Grants totalling £50K were made to ODST in the year (2019: £nil) to provide funding for maintenance works. At the year end the full balance was included within creditors (2019: £nil).

The relationship between the Charity, ODBF and ODBE is as set out within the directors’ report.

The amount receivable from ODBE is a loan as set out in Note 7. The loan is interest‐free and provides funds to ODBE to finance its cash flow for premises work.

The reimbursement of expenses to the directors is disclosed in Note 5.

There were no other related party transactions in the year requiring disclosure (2019: none).

17. Custodian funds

In addition to the Trusts detailed above, the Charity acts as Diocesan Authority or Custodian Trustee on behalf of trusts. These trusts each have their individual objects and are related to the Charity in that they are all connected with the Church of England. The Charity oversaw the investments of 665 trusts ( 2019: 667 ) with a total value of £75 million at the end of 2020 ( 2019: £61.7 million ). A total of £15K of additional capital was accepted during 2020 ( 2019: £0.6 million ). These trusts are administered separately from those for which the Charity acts as Managing Trustee and are not included in these financial statements.

18. Staff

The Charity has no employees and therefore has no employment, national insurance or pension obligations.

19. Members liability

The Charity is constituted as a company limited by guarantee. In the event that the company is wound up, company members are required to contribute an amount not exceeding £1 each.

30

Diocesan Trustees (Oxford) Limited Directors’ Report and Financial Statements

For the Year Ended 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS (cont’d.)

20. Prior Year Comparatives

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2019

Note
Income and Endowments from:
Donations
2
Investments
3
Other sources
4
Total
Expenditure on Charitable Activities:
Grants
5a
Other
5b
Total
Net (expenditure) before investment gains
Gains on investments
6
Net income and net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£’000
109
‐
‐
109
‐
(109)
(109)
‐
‐
‐
‐
‐		 Restricted
Funds
£’000
‐
412
‐
412
(365)
(68)
(433)
(21)
184
163
1,791
1,954		 Endowment
Funds
£’000
‐
‐
406
406
(87)
(2)
(89)
317
1,245
1,562
7,130
8,692		 Total
2019
£’000
109
412
406
927
(452)
(179)
(631)
296
1,429
1,725
8,921
10,646

The Statement of Financial Activities (SOFA) include all gains and losses recognised in the year. All income and expenditure derives from continuing activities. The notes on pages 18 to 30 support the above figures.

At 31 December 2019, the above funds were represented by the following net assets:‐

Permanent endowment funds
Expendable endowment funds
Restricted income funds
Total		 Investments
£’000
93
8,440
1,403
9,936		 Cash
£’000
‐
72
674
746		 Debtors
£’000
‐
138
146
284		 Liabilities
£’000
‐
(51)
(269)
(320)		 Total
£’000
93
8,599
1,954
10,646

31