SOUTHWARK DIOCESAN BOARD OF EDUCATION Developing Church of England Education Companies House Southwark Diocesan Board of Education Incorporated Directors, Annual Report and Financial Statements For the year ended 31 December 2022 Company limited by guarantee {00086641 England and Wales) Registered charity (No. 313001) Registered & Principal Office.. 48 Union Street London SEI ITD IIIIIIIIIIIN *AC9)OZE8* 09108r2023 COMPANIES H¢JJSE A10 #159 Southwark Diocesan Board of Education.Inco￿￿rated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 Table of Contents Page Reports Reference and Administrative Information Trustees, Report (including): Objectives and Activities Achievements and Performance Future Plans Financial Review Structure. Governance and Management Relationships with other charities and foundations Principal Risks and Uncertainties Statement of Trustees. responsibilities li 15 17 18 22 23 Independent Auditorfs Report 25 Financial Statements Con501idated Statement of Financial Activities Balance Sheet5 Con501idated Statement of Cash Flows Principal Accounting Policies Notes to the Financial Statements 31 32 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 Trustees The Rt Revd Christopher Chessun (President) The Rt Revd Jonathan Clark- resigned April 2022 The Rt Revd Dr Rosemarie Mallett Martin Brecknell Elizabeth Broad Julia Corby The Revd Canon Stephen Coulson- resigned July 2022 Helen Dixon Malcolm Edwards CBE Ven Simon Gates- appointed Dec 2022 The Revd Annie Kurk Maria McBean Dr David Muir- resigned Dec 2022 Ekundayo Olomu Eileen Perryer- appointed May 2022 , resigned Jan 2023 Revd Tomos Reed- appointed Jan 2022 Alberta R05enior- appointed Jan 2022 Dr Catharina Stibe Hickson The Revd Ariadne van den Hof The Revd Andrew Williams Miles Winter- appointed Jan 2022 The Revd Erica Wooff Irene Wolstenholme- appointed Jan 2022 Senior leadership team Rosalind Cordner (Director of Education) Marcus Cooper IAssistant Director)- resigned Oct 2022 Company secretary Rosalind Cordner Registered office 48 Union Street London SEI ITD Charity registration 313001 Company registration 00086641 Southwark Diocesan Board of Education Incorporated Dirertols Report and Financial Statements For the Year Ended 31 December 2022 Auditor Buzzacott LLP 130 WDod Street London EC2V 6DL Bankers National Westminster Bank plc P.0. Box 3038 57 Victoria Street London SWIH OHN Solicitors Winckworth Shenvood Minerva House 5 Montague Close London SE19BB Southwark Diocesan Board of Educatlon Incorporated Director's Report and Financial Statements For the Year Ended 31 December 2022 Acronyms used throughout CofE Church of England CEFEL Church of England Foundation for Educational Leadership CCLA Central Board of Finance of the Church of England Continuing Professional Development Department for Education Devolved Formula Capital Equality, Diversity and Inclusion Further Education Full time equivalent Higher Education Further & Higher Education Local Authority Multi-Academy Trust Memorandum of Understanding Partnership Agreement Requires Improvement Southwark Diocesan Board of Education Southwark Di(Kesan Board of Education Multi-Academy Trust Southwark Diocesan Education Services Office for Standards in Education Standing Advisory Council on Education Statutory Inspection of Anglican and Methodist Schools Service Level Agreement Senior Leadership Team Statement of Financial Artivities Stand Alone Academy Trust Voluntary Aided Schools Condition Allocation CPD DfE DFC EDI FE FTE HE F/HE MAT MOU PA Rl SDBE SDBE MAT SDES OFSTED SACRE SIAMS SLA SLT SOFA SAT VASCA Southwark Diocesan Board of Education Incotporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 Dirertors, Annual Report The Board members, who are also Trustees and Directors for the purposes of charity law. have pleasure in presenting their annual report, together with the audited financial statements, for the year ended 31 December 2022. OBJECTIVES AND ACTIVITIES Background The SDBE Charity exists to fulfil the statutory duties of the Diocese of Southwark for the education of the 36.000 children and young people attending its 104 schools. Within the diocesan family of schools. the SDBE provides advice, support and offers development of the distinctively Christian ethos is schools which remain inclusive and are here to serve their local communities. In addition, the SDBE provides support to haplaincy in the HE/FE colleges and universities across the diocese. Objectives The purpose and objerts of the Charity are set out in its two rnain constitutional documents". The Diocesan Board's Education Measure (2021): and The Memorandum and Articles of Association of the Southwark Dioce53n Board of Education. Shaped by these, the Charit(s vision is expressed below: To enable the mission of God through the work of the Board; To be a high-performing Diocesan Board of Education, promoting excellence in education both locally and nationally: To develop and grow highly effective, inclusive Church of England schools rooted in Christian values; To celebrate and share the richnes5, quality and SUC￿SS of our schools and chaplaincies; and To offer exemplary service to our schools and chaplaincies. Actlvltles The work of the SDBE runs within three key areas; Church School Effectiveness, Development of Chaplaincyin schools. colleges and universities, and development and growth. As such the charity advises governors of all its schools (VA, Foundation, MAT and STATI on any matter affecting church schools in the diocese, includin& but not limited to development in the following areas: Southwark Diocesan Board o* Education incorporated Oirectorfs Report and Financial Statements For the Year Ended 31 December 2022 OBJECTIVES AND ACTIVITIES (continued) Activities (continued) Supporting school improvement through professional development of teacher5 and school leaders, CPD for staff and governor5. professional advice and pastoral care; Provides advice on any proposed changes to the status, viability and future of all schools (including significant changes): Approves all new building. alterations and refurbishments to Church School buildings: Appoints and supports Foundation governors for all church schools; Advises and SUPPOTts governing bodies on the appointment of headteachers and senior staff: Receives and considers the reports of all fornial tnspections {SIAMS and Ofsted) at all church schools, which are required to be carried out under the education act 200S.' analysis of outcomes and further development of support shapes the ongoing CPD and briefings to schools. Key headlines are shared with the Board and it5 comrnittees: Across the seven HE and five FE institutions Cl)aplaincy Development support 15 provided; thi5 15 in addition to the chaplaincy development and support that is given to our schools. Part of the function of the Charity is to ensure CofE representation at the 11 SACRES across the diocese." representation on LA Committees for Overview and Scrutiny {or equivalent democratic serlices meeting). The Partnership Agreement provides a comprehensive professional offer to all 104 schools including headteacher and senior leader meetings and the annual conference; and The structure of the advisory team enables flexibility in offering additional SUPPOrt, training and development from year to year to meet any immediate needs in addition to the core offer. for example Mental Health First Aid and development of an EDI working partv. Southwark Diocesan Board of Education In￿rpOraled DiTectorfs Report and Financial Ststements For the Year Ended 31 December 2022 OBJECTIVES AND ACTIVITIES (continued) Public benefit In preparing this Annual Report, the Trustees have paid due regard to the Charity Commission guidance on public benefit in deciding what activities the Charity should undertake. Our principal beneficiaries and service users at the Church of England schools and the students and staff of the universities and colleges located within the Diocese of Southwark. In practice. the relationship with our thirty-four thousand children and young people in the maintained education 5ertorthroughout the Diocese of Southwark, is achieved in real terms through the regular contact with school leaders and governors and in response to requests for advice and support via our Partnership Agreement forchurch of England schools and academies and our relationship with the Southwark Diocesan Board of Education Headteacher Association. ACHIEVEMENTS AND PERFORMANCE Governance Preparatory work was undertaken for a succe55fuS adoption of the New Diocesan Measure and revised articles of association at Diocesan Synod on Wednesday 13 July 2022 which paved the way for a smaller, more efficient Board of Education. Key benefits include a review of the terms of appointment and a commitment to a deliberate focus on future recruitment to reference EDI with a view to having a Board that reflects the diverse community it serves. The reduced Board size eliminates historic long standing vacancies, which in turn supports an efficient governance structure. Working with our SDBE MAT (The TTUSY) As the SDBE MAT prepares to on-board its eleventh school, in eight years, Members reviewed the governance arrangements and embedded a new memorandum of understanding with the Trust to secure the foundation of the Trust for the lon8 term- given the focus on Trust growth following the White Paper and subsequent Schools Bill, a working party between the Board and the Trust was set up. the SDBE have commissioned a review of national academy models as part of its work towards developing the MAT strategy for the future. Approval by the Board was granted to two schools to join the Trust - The Minster Junior School and the Minister Infants School in Croydon joined in September 2022. Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 ACHIEVEMENfs AND PERFORMANCE (continued) Working with the Diocese- Racial Justice. Climate Justice. Growing Faith The SDBE benefits hugely from the support it receives from the Diocese of Southwark. It enjoys close relationships with the clergy and in particular the Children and Young People Team. The Cathedral and its Learning Centre and increasingly more cross over opportunities have been developed between the justi￿ Peace Integrity & Creation Officer and Environmental Working Party. Following the launch of the diocesan Anti R3ClSt Charter in schools in November 2021. much of 2022 was focused on expanding the curriculum to reflect the EDI agenda. There has been a lot of work done to ensure that anti-racism is a leading strand in addressing inequality throughout the work of the Board, with new CPD units developed and delivered within the core training offer. The work has also begun to expand the EDI offer to ensure that all elements of inequality are addressed. A working party has been established to ensure that this crucial piece of work remains a key focus for the staff team to develop. Work has begun on developing a baseline record to create a statistlC31 database to track progress towards understanding the current make up of those employed at the Board. in schools. across the governing bodies and committees where SDBE is represented. This will become a regular event so that trends and progress can be tracked and action taken to addre55 8aps/barriers and blockersto change. The CPD offer has been reviewed and refreshed, and we offer EDI. ClimateJustice, School sustainability workshops. Climate Justice CARBON NET ZERO As part of our work to meet General Synod's Net Zero Carbon Route Map to decarbonise the CofE estate by 2030. work on a pilot programme of heat decarbonisation plan5 for 13 schools. mainly funded by an award from the Salix Finance Company of £7,212,233 during the year with an additional £12,000 VASCA top up began this year. This will include a strategic plan for all VA schools, which will give the buildings team an estate-wide picture of energy use that will allow us to better target grants to schools with the biggest heat loss issues. Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 ACHIEVEMENT5 AND PERFORMANCE (continued) Climatejustice CARBON NET ZERO {continued) Work around the Public Sertor Decarbonisation Scheme Round I to install air source heat pumps to 58 schoo15 and our offices at Union Street was delayed due to the collapse of the installation subcontractor. Snagging is now forecast to finish in the spring of 2023. The SDBE continues its work to develop and update the curriculum content in all subject areas to ensure that climate justice is included from RE lessons through to PE lessons. Work continues around Eco Charter, Eco Diocese, Global Neighbours to ensure teachers. leaders and governors are aware of the CPD and resources available to support schools in delivering key messages around the changing climate. New schools We were pleased to learn at the end of the autumn term, that applications in support of the rebuilding of All Saints, Croydon. The Minster Infant School and The Minster Junior School. also in Croydon, were successful. Whilst our fourth nominee, Archbishop Tenison's, Croydon received a letter confirming they had not been successful, the school has been included in a DfE 'net zero, pilot project. Substantial roofing, insulation and heating system improvements have been indicated as being within scope for grant funding. Planning for new Kingston school A new six-form entry 11-16 VA CofE Secondary school in Kingston is due to open in September 2025. It will include a 20-place specialist autism resource base. Design planning resumed at the end December 2022. St Peter and St Paul's expansion from infant to primary school The school expansion from a one form entry infant school to one form entry primary school for pupils aged 4-11 came into effect in September 2022. We are grateful to Surrey County Council for their continued support during the delayed process to ensure the plan5 were fulfilled. 10 5outhwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 ACHIEVEMENTS AND PERFORMANCE (continued) Sch(yol effectivene55 New SIAMS notionalfmmework After a long gap between the suspension of SIAMS in March 2020 and the end of the academic year 2022, we were delighted that our first inspection under the new framework, at the end of the summer was excellent. A second school wa5 inspected in the autumn term and was also graded excellent. Outcomes at the end of December- 100% of schools remain good or better with 75%judged as excellent. There were a total of 27 Ofsted inspections over the year. Two schools that were previously inadequate werejudged asgood and one Rl school was also judged as good. Of the 104 schools, 102 are good or better {98%1. 22 schoo15 are graded outstanding {21%1. There are 2 Schools awaiting inspection that are graded as inadequate (2%}. It is expected that overall outstanding/excellent outcomes will drop as the respective new framework5 for both SIAMS and Ofsted are embedded. Nonetheless, the achievement of Schools who have maintained or achieved at the highest level must be congratulated. FUTURE PLANS Development of the Board- under the new Diocesan Measure. from l January 2023 the Structure of Board was reviewed. The Size of the Board was reduced to bring it line with the other Diocesan Departmental Boards. The Board has reduced in size from a possible membership of 32 to a maximum of 19. This has eliminated longstanding vacancies and the inefficiencies this created. There is also an ongoing commitment to recruit Board members so that the make up of the Board reflects the diverse community we serve. Our governance structure is subject to the same baseline assessments for EDI that we are condutting with our schools and HEIFE colleges. The hope is the next triennium will see a change in the membership of the Board that reflects our school and college make up. The revised artides of association sharpen the focus on roles and responsibilities for Board members, particularly around attendance: this will ensure committees can function well. knowing that Members are able to commit to engage as required, with any non attendance managed efficiently. 11 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 FUTURE PLANS (continued) We will complete the review of the Terms of reference for each Board Committee so that they align with the new articles of association and secure strong structures for each committee. Following the shared diocesan/Board recruitment drive to attract more UKME and EDI applications and appointments, recruitment panel structures have also been revlewed with a commitrnent to ensure that representation of the panel reflects the diversity we wish to see across the organisation. Given the dramatic fall in the number of pupils attending school across Lambeth and Southwark in particular. our strategy to respond to surplus pupil places will be developed during the spring. We have secured a secondment to increase our team capacity to condurt some focused I:1 work with schools to expand our central knowledge base. We will routine￿ collect information around pupil numbers, school finances, the quality of the School estate. staff structures and local context as well as the links with the local church. This will create an enhance schools risk register that will provide us with a RAG rating system to shape how we utilise our resources most effectively. Work has begun. with school surveys. on responding to the White Paper and Schools Bill. Given the context we are in with successful Schools and a mix of VA and academies, the offer we currently have provides the Space for any school wishing to become an academy- the SDBE MAT. However, it does not. as it stands, offer all of the answers around the place for SATS or schools with a different foundation. The SDBE has commissioned an initial review to provide oversite of the range and offer of MATS across the country. This will be completed in the spring term and reviewed in the summer by the joint Boardnrust strategy group and work with schools over the summer term will complete the process 50 that the growth strategy begins in the autumn term. Following the changes in curriculum development and delivery that were accelerated during Covid, we recognise the need to review the RE syllabus for primary schools. This will be a key piece of work for the advisory team over the year ahead and will include a focus on a55essment in RE for primary schools. We are actively working on a full estate management plan to include all investment properties as well as our offices at 48 Union Street. 12 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Ststements For the Year Ended 31 December 2022 FUTURE PLANS (continued} Investment in Exton Street- havingcommissioned a condition surveyforthis property, a proposal to start the process of retrofitting this four storey office buildin& which brings the greatest income across all properties, will be taken to the Board in the spring. This proposal will be a 3 year improvement plan including a new roof and new windows and ensuring that the building meets the green energy requirements of we have as landlords. The implication of falling rolls leads to specific plan to develop a vacanvvulnerable schools building strategythat will ensure we benefit from the lessons learned from the losure of St Andrew's, Croydon and St John's Walworth. VASCA- we will review the committee structure and revi5ethe terms of reference to expand membership of the committee. the process for managing annual bids is also due for review having run for 3 years there are some specific themes to be addressed, particularly around consistency of bids and fragmented central records on the state of some school estate. INVESTMENT POUCY AND PERFORMANCE The Board of Trustees. investment powers fall under the Trustee Act 2000 and the Memorandum and Articles of Association in which paragraph 10 permits the Board of Trustees "to invest any monies possessed by the charity (or held in trust by it) in or upon such investment5 or securitie5 as may from time to time be determined, but $0 that monies or property subject to the jurisdiction of the Charity Commissioners shall only be invested in such securities and with such sanrtion a5 may for the time being be prescribed by law. Portfolio Performance (01/01122 to 31112122) Low Risk Portfolio -9.46% (2021: +5.94%) Comparative benchmark 4.79% (2021: +4.06%) Low to Medium Risk Portfolio -12.21%12021: +7.89%) Comparative benchmark -10.62%12021: +8.08%) Medium to High-Risk Portfolio -16.50%12021." +15.59%) Comparative benchmark -8.18%12021: +13.62%) 13 Southwark Diocesan Board of EduGition Incorporated Director's Report and Financial Statements For the Year En(led 31 December 2022 INVESTMENT POUCY AND PERFORMANCE (continued) Negative market sentiment and high levels of volatility have continued as we entered the second half of the year, with equity markets around the world beginning to price in the possibility of a recession in the short term. Economies continued to battle against conflict. the energy crisis, China's zero Covid policy and stjpply chain disruption following the pandemic. More recently, we have seen the highest annual inflationary pressures in a generation, providing an additional challenge to markets. In response, central banks have tightened their monetary poliry, with aggressive interest rate increases. In recent weeks, the Federal Reserve announced a hike of 0.75%, the largest increase since the 1990s. The Bank of England voted on a smaller 25bp raise, raising rates to 1.25%, the highest since January 2009. Growth asset5 have struggled in this rising yield environment, and whilst there may Still be some pockets of overvalued speculative assets, growth as a Style still contains many high quality. cash generative companies with strong balance sheets, which look attractively priced after recent volatility. Whilst equity prices have fallen globally. the recent round of quarterly corporate results demonstrated that earnings expectations have proved relatively robust, with consumers still spending and profit margins holdin8 UP. Low-Risk Portfolio The top contributor to performance over the last 12 Months, was Guinness Global Equity Income fund. which as historicalty proved to be a more defensive asset throughout periods of market stress. The fund is able to withstand macro-economlc factors due tothe economicstrength of its underlying business modelsand their ability to act as price makers in the marketplace. LXI REIT has also proved resilient in the portfolio. as it offers inflation-protected income and capital growth underpinned by a secure portfolio of very long-let and index-linked UK property assets (average lease length of 22 years, 95% of rental income subject to RPI/CPI or fixed uplifts). In equities, the main detractor from performance was Fundsmith with its exposure to longer- duration grovrth assets suffering in this period of rising interest rates, as valuations compress despite fundamentals remaining good. The portfolio's fixed income exposure has also detracted from performance given the substantial rise in government bond yields, but our positioning at the shorter end of the yield curve has helped on a relative basis. 14 Southwark Diocesan Board of Education Incorpornted Directorfs Report and Financial Statements For the Year Ended 31 December 2022 INVESTMENT POLICY AND PERFORMANCE (continued) Medium and High-Rlsk Portfolios In this higher risk mandate, the non*quity constituents have proved to be useful diversifiers and have held up relatively well over the last 12 months. The main detractors have come from our overseas funds with high exposure to growth sectors such as technology, as well as our exposure to mid and small cap funds. The former group of companies have suffered as valuations have fallen despite fundamentals remaining good and the latter is pricing in a very negative economic outlook with numerous companies already pricing in a recession. Looking forward, markets are likely to continue to be volatile in the short term with uncertainty surrounding the future path of interest rates given that inflation remains elevated. However. over the past month or so we have seen signs that inflation is starting to peak which has enabled government bond yields to fall as central banks would be unlikely to implement more interest rate hikes than the market is currently pricing in. We also believe central banks will struggle to implement more interest rate hikes than already priced in given we are seeing leading economic indicator5 Start to slow and the chance5 of a recession are increasing. Any pause or less hawkish rhetoric from central banks is likely to help risk assets. which are trading at attractive valuations, start to rebound. FINANCIAL REVIEW The SDBE is established as a statutory body to fulfil a range of duties and responsibilities. Total income of £9.233.771 (2021: E17.278,524) was received during the year. During 2021. income included £1,600,00012021- £8,825,000) of donated assets and £5,304,622 12021- £5,919,905) of Voluntary-Aided School Condition Allocation IVASCA) grant funding. Excluding these amounts. operational income for the year was derived from the following sources: Schools {Service agreements and related income): £482,206 £475,586- 19%) 21% 12021: Maintenance scheme subscriptions: £534.076-23%12021: £554.470- 22%) Diocesan Grants: £348,312- 14% {2021'. £333,460- 13%) Lettings and Investments: £817.092- 35% {2021: £951,637- 37%) Other income: £162,315- 7% (2021: £218,466- 9%) Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 FINANCIAL REVIEW {continued} To fund the discharge of its day-to-day outgoings in the delivery of The Diocesan Measure las distinct frorn its work connected with building works at the schools), the charity depends on the grant received from the Diocese of Southwark, which amounted to a total grant of £348,312 (2021: £333.4601 for the year, comprising £336,79512021: £333,460) core grant and £11,517 {2021: £nill of other grants. The charivs operational activities are represented by its unrestricted general fund. The operational expenditure of the charity exceeded its operational income, resulting In a deficit of £60.477 {2021: deficit of £231,601) before taking into account net gains on listed investments of £530.804 (2021: net gains of £278.434) and transfer5. Transfers in and out of the unrestricted general fund included a transfer in of £60,000 from the external periodic Maintenan￿ restricted fund representing the costs of administering the fund {2021.' £60.000), and net other transfers out of the fund totalling £nil 12021: net transfers out of the fund of £299.593). This gives. read together with realised and unrealised losses on the value of investments of £530,804 (2021.. gains of £278.434), a netdecrease in the unrestricted {operational} funds of the charity for the year of £531,281 (2021: net decrease of £192,660). Overall, there was a net increase in total funds of £3.280.530 (2021". net decrease of £9,712,134), after also accounting for an increase in restrirted funds of £3.456,036 (2021: increase of £2,669,960), an increase in the property fund of £346,118 {2021- decrease of £6.857,378} and an increase of £9,447 in the value of endowment funds (2021. increase of £7,000) Southwark Diocesan Education Services Llmited SDES The charity operates a wholly owned subsidiary company, SDES Ltd. The company carries out a number of the charl￿5 activities including the provision of services for schools in the diocese of Southwark and the provision of administrative services for the charity. 16 Southwark Diocesan Board of Education Incorporated Directorfs Report and FFnancial Statements For the Year Ended 31 December 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT The Diocese of Southwark The Southwark Diocesan Board of Education is a separate registered charity, but it is an integral part of the Diocese of Southwark as a whole, fulfillin8 the diocesan Statutory duty in respect of children's education and it-s cornrnitment to chaplaincv development, It receives an annual grant from the Diocese through the Diocesan Board of Finance to fund the work of delivering the Diocesan Measure in the Board's schools. Board and Committee structure The members meet three times a year. There is an Executive Committee {Policy and Strategy) which meet more frequently comprising of the Chairof the Board and Chairs of the sub-committees and on occasion. the Chair of the SDBE MAT alongside other senior members of the Board'5 senior offI￿r5. The Board has four further committees: • Finance and Development Committee • Schools Committee + Further and Higher Education Committee • Audit Committee Key management personnel Together with the Board members. the Diocesan Director of Education, Assistant Diocesan Director of Educaiton. Financial Controller, Building5 and Capital Programmes Managerand Office Managerare considered key management personnel byvirtue ofthe fact that theyare responsible forthe day-to-day running of the Charity. The Staffing Reference Group inform the Policy and Strategy Committee with regard to the annual pay award to Staff. 17 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Icontinued) Relationships with other charities and foundations The SDBE has the opportunity to nominate a representative to the following educational charitable foundations, which support the provision and promotion of educational opportunity for children and young people through grants to organisations and individua15 Within the area of the Diocese of Southwark; • Greenwich Bluecoat Foundation • Culham St Gabriel's Trust • St. Mary Newington United Parochial Foundation It also has representation at Saint Cecilia's as a Member, SMUPF, Member, Bacon's, REAch2 and the Anthem Trusts. Directors of the Board The following were directors and members of the Southwark Diocesan Board of Education at the date of this report. All have served through 2022 except where indicated otherwise: Bishop of the Diocese (President) The Rt Revd Christopher Chessun The Rt Revd Dr Rosemarie Mallett Chair of the Board of Education Members appolnted by the Bishop (up to4) One must be a Bishop of an episcopal area within the diocese One must be an Archdeacon of an archdeaconry in the diocese The Rt Revd Dr Rosemarie Mallett (from March 2022) The Ven Dr Rosemarie Mallett (until March 2022} The Ven Simon Gates (Dec 20221 Mr Martin Brecknell Vacancy 18 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements Fortheyear Ended 31 De￿mber 2022 STRucfuRE, GOVERNANCE AND MANAGEMENT (continued} Dirertors of the Board (continued) CROYDON EPISCOPAL AREA Croydon Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Lay Member Reigate Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Lay Member KINGSTON EPISCOPAL AREA Lambeth Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Lay Member Wand5WOrth Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Lay Member Ekindayo Olomu The Revd Annie Kurk Vacancy Dr Catharina Stibe Hickson Vacancv Vacancy The Revd Erica Wooff Vacancy Maria Mc8ean Vacancy Vacancy Irene Wolstenholme WOOLWICH EPISCOPAL AREA Lewisharn & Greenwich Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Vacancv The Revd Ariadne van den Hof Miles Winter Lay Member 19 Southwark Diocesan Board of Education Incorporated Directorfs Report and Financial Statements For the Year Ended 31 December 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Directors of the Board (continued) Southwark Archdeaconry Member of Diocesan Synod Clerk in Holy Orders Lay Member Principal of Whiteland's College (or deputy) Alberta Rosenoir Revd Tomos Reed Vacancy Dr David Muir resigned July 22) Julia Corby Chair of the Southwark Diocesan Head Teachers Association Choirs of Sub-committees.. Policy & Strategy The Rt Rev Dr Rosemarie Mallett Schools Elizabeth Broad Malcolm Edwards CBE The Revd Andrew Williams Finance & Development Further and Higher EduG3tion One member elected from eoch sub 626.118 J.Si&036 9.47T 4,091,154 11.ffi5.5671 investment I280.0￿} I8.￿S,0c￿l N¢1 IIOsse$y9ains M 15thd investments 118 (s￿,￿4) IS30,8041 278.434 Net {expend￿￿re)1lncorn? b81or•tran￿e￿s 346,118 3.516,036 9.4TT 3,280.3SO 19,712,133) Transfers fvnds 15 Not In fyrtsts 1531.281 Yfj.118 J.4S6.OJI 9A77 3,280,350 19.712,1331 R•conGll&￿0n of funds: Fundstrfought foThvaRJ at 1 January 2022 Fund5 carried for￿￿ •t 31 December 2022 3,412.743 16.837.564 1.314.942 24tyA16 21,805,665 31.517.798 15 2.881.462 17.183.6B2 4.770.978 249,893 25.086.015 21.80S.665 l of the grr¥Jp's acmies derNed from tsmtming opetation$ duriro ts above financial years. All recogni5ed gains arKI 105ses for the yew are included in the atove Statements of financial livilies. ComparalNe inf(ffmation by fvnd dass for Ihe year ended 31 De¢emLw 2021 isffJiven in r￿le 21. No summary ir￿e and expenditure account has been produced as the only difference to the slalement of financial activities would be Ihe omisS￿n of eThJ¢)wed income of £10,477 12021.. £8,103),. endo*Ed expen(Jilure of £ £1.1)JO12021.' £1,1))O} transfer of £nil (2021. £1031 to the restricted fund. Southwark Diocwsan Board for Edu¢ation Incorporated 31 Balanco sheets 31 December 2022 Gr4)up Charlty 2022 2022 Group 2021 Chathy 2021 Tangible asset$ Inveslrwts 10 1236,19> 1.236.198 1.428.383 1,428.077 11 21.720.680 21.720.680 22,202,852 22.202,852 22.956,879 21956.878 23.631.235 23.630.929 Debtors Cash at b#rfK and ￿ hand 13 368.778 3,8B3,754 4.252.532 251,900 3,830,226 4.082,126 147,619 1,381,555 1.529.174 69.108 1.333,344 1.402,452 Cr•dltorn: amounts falling due witrin one year 14 11.179,3961 11,020.7401 12,4ff2,744) 12.2B7,4691 Net current a¥8¢ts (Ilabllllle¥) 3.073,136 3.061A86 1873,570) 1885.0171 more than one year Creditors." amounts f•llirwJ due after 13 1S0.000 1SO.ty)O I￿).000 150.OOD 14 {1,094.1)00) {1.094,0001 11.102.000) 11.102,000) NÈtassets 25,086,O1S 25.072.264 21,805.665 21,793,912 Th• lunds ol the charity Unre5tih#ed lund$ . General hjnds . DesKJnated hJnds Restrthd thJnd8 Endowmenl fvnds 15 2.881,462 2.869,711 3.412.743 3.4CQ.991 17.183.682 17.183,682 16.837.S64 16,837,5e4 4,7YO.978 d.no,978 1.314.942 1,314.942 249,893 249.893 240.416 240,416 25.086.015 25.072.264 21.805,665 27.793,973 The financial ststements ￿re approved and auth¢yised for issu8 by t1￿ Trustees aThY were sKJned on their behalf by: l Revd r Rosem￿ Mallett. Tn￿tee Mr Makdm Ethmrds. Trustee AppThed by the b3ard on: i4 013 Southwark Dvxesan Board of Education InC0￿rated Company limited by guarantee Regislralion NLrnber. IXQ86641 {Engkqnd and Vlalesl The notes on page$ 31 to 57 fryrn part of the fin￿¢la1 8tstemenl& Southwark Diocesan Board for Education Incorporated 32 Con$olldated slatem•nt of ¢ash flows Year to 31 De￿rnber 2022 2022 2021 Notes Cash flows from operatlng acli¥its•s'. Net cash prowded by lused inl operating acb¥ths 1.130.247 15.806.880) D*iidends. Inte￿St and rents from inve5trnents Proceeanised as restricted income by the ¢harbty. Detals of funds afe set out in note 16. Southwark Diocesan Board for EducatM?n Incorporated 38 Principal accounting policies Year to 31 December 2022 Funds (C￿lIn￿ed) Conduit Funds- capifalproiects (confvnued) The agreer￿t grants no dea'sion making authority lo the charity over the schools, funds. including Devolv8d Fomiula Capilal grants and governots. fvnds, aTrJ therefoie the charity acts as adminislrabve agenl in respect of these. Accordingly these fvnds represent conduit fvjnding and are iherefore exduded from the th¥ity's ffnantsal slalements. Pension contributk*ns Contn"butions are made for full-tsme slaff to the Church of England Church Workers'Pension Fund and to the Teathers. Pensi¢M Stheme. The pension Costs charged by the schemes are based on actuarial nElhods and assumpts.¢￿S de￿The￿ to Spre￿ the anbcipaled Fension Costs over the service lives ol the empk)y8es in the scheme, so as to ensure that the regular pensron cost represents a $ubstantialty ¢￿sistent per¢entage of the Current and future payroll. Variations from ￿UL￿1 costare spread over the remaining seNi¢e lives oflhe current employees 38 are thereth accounted for as if they were defined contribution schemes. Further delw'ls are set c*rt in note 17. Southwark Diocesan Board for Education Incorporated Notes to the financial slatements Year to 31 December 2022 1 Grnnts and donatlons funds funds 2022 D•x4san gr¥1 Donated a￿l&- 16 5￿t (not6 1 Ibl 11.517 34B.312 7C*J.(QI 7￿.000 $7S,019 18,623 S.575.019 Othtrrgronts 2022 TOW funds 18.523 71)0.000 $.616.$36 UME5trKted fvrK15 General D8svJnaled lunds lund8 En¢)Y•Tn8nt nds luTras 2021 grant Donated 8SS818- WaI￿th St John's Inote 11bl VASCAGrarts Otrrtr wants 2021 Trtal knds 333.4eo 1.6Crt).(O) 1,6W,000 5,304,622 18.340 7.256,422 5.304,622 18,340 351.eCQ 1.6th),Cth S.304.622 The Charity assists ¥￿￿ntary aided schc*Js with sclKd buikliThJ projects. It historically acted as the agent of school govemcfs in helping to arrange fiJnding through the DIE and Local Aulhofities and in paying professional fees and building c051s on behalf of schwl governors. The VASCA (Voluntsry-Aided Schc<* Condition Al(￿tiOn) system was introduced in April 2020 and suk*rseded the LCVAP ILc¢alty Coordinated Voluntary-Aided Programmel. The char¥Je in funding gives the charity uth'mate control over the application of the VASCA grants to SFecific sthjots. HistorKalty, the LCVAP wa5 not reflected in the Statement of Financial Actiwb"e5 as the Charty had no control over the funds. The transactions were those of the scho(A5 and controlled and apwoved by the 9mfrLKs rather than the Charity, bthich acted as agent. Since the use of the VASCA grant lunding is at the discrelion of the Board il is now induded in the SOFA a5 Incorr￿ along wrth the related expenditure. The unspent balance at the end ofthe year is committed to projects or retumed to the DIE if rKJt committed within iwrj years of the grant date. 2 Charltable actlvities fvnds lund 2022 S95.98 Othei etlu¢8lpJnal . Advwry and consulanGy t••s . 8i5hpp'5 certthate school gr￿man(• . other SUr￿ry inc*m& 2022 Total funds 4029) 40,250 3,840 30.186 74.276 30.186 74276 595.gBQ Southwark Diocesan Board for Education Incorporated Notes to the financlal statements Year to 31 December 2022 2 Charftable •ctfvitl¢s (continued) un￿Str￿1 fvnds General C*sunated Restricted Endrr*)npnl lunds funds nds 2021 534,076 534,076 Other 8ducètK)nal Incorn• . ￿¥[sory arKt consyRanGy fees . ￿0p'S￿rt￿18 in thurth sch￿1 9o¥emar . Other suTrJry 2021 Total furnls 61.867 61.867 2,400 7.128 605,471 7.128 71.395 SY.Q76 3 Other tradlng activities Unresldrtsd funds funds tuTr18 funds 2022 492.865 492.86S tsnagemenl fees . Capital p¢4eds . m•inten8n￿ prqe(18 Trniniry e%Yr Aththonal adv￿r￿￿K￿l Sundry Iraéin9 lThco 2022 Tolal lurvjs 1.348 7.398 3.335 3.212 29.167 S66,325 7.398 3.33$ 3312 29.167 566.325 Unrestrided lund$ Gerwl ￿"Ynd1ed ReSt￿led ETrJMn8nl fvnds funds funds 482.206 482.206 Man•goment 18es . Capital pr4ed¥ . ￿intenan￿ p Twairung e￿nIS A¢Althn81 ad¥Aorswort trading 2021 Total 4,817 15.286 4.817 15.286 21.650 21.650 30.￿￿? SY.786 5Y.786 Southwark Diocesan Board for Education Incorporated 41 Notes to the financial statements Year to 31 December 2022 4 Income from investments fi￿d* 2022 93.724 768.￿1 861686 9.426 10.477 113.627 886.957 1.000.584 Renw ond kK%)rre 2022 Tcal fvnds 117, 117,996 9.420 10.477 Generdl D25ynated Re*rthd Endrywrwt ftjnds J5 luTrJ5 2021 LIs￿d and vnlistrl knvesljrw Rental 8￿j *tb'n9s illcL¥r 2W21 Tolal fwnds 60.39) 676.077 736,467 13,023 8.103 81.516 735.576 817,092 59.4 59.499 13,023 8,103 S Exp•ndityr• on ralslng funds fun nth fund5 fund6 2022 Letbn9$ewses Investrnent man•¥rn•rrtf••s Bart( charges 2022 Total funds 391,382 34.676 391,382 34.876 S,060 431,126 431.126 Unrestrhapd fur¥15 Gonewal [￿￿nated Restr￿￿4 Endry*menl fu￿15 fur fund5 Lettings expensas 483.486 24.475 3,3¥2 511.353 24.475 8ank Charges 2021 Tot￿ funds 511.353 6 Expendknre on charltable acthilileg Unrestrlct•d fund8 funds 2022 Schopl rnanl•nancg eypefid￿ VASCA gr¥ntexF*nd*ure AdvKe arKI guKlan Training 8nd de¥eWrw* 471,6C 2,192,611 471.806 2,192,611 1.148,405 292,309 251,808 4.355.7 1.017.229 247.858 222.868 1,487.956 131.176 31,952 28.740 . 191178 11,489 2022Total fur#lB 2.675.906 1.ODO SouthwaFk Diocesan Board for Education Incorporated 42 Notes to tho financlal statements Year to 31 De￿rnber 2022 6 Expendlture on ¢hafltabl• activitl•s {￿tin{Ed) Unreknted frJnds GpnErnI Dwnated R05tAraed End￿￿nI fuThJy fvnds Stht4JlrnaIr￿en3n￿ e>¥eThlhure VASCA grant expeThJ4ur• Advts ar￿ guwJaKe TMniNJ and devEk7prnent PNoJecl manageJThrrt 2¢21 Total lund5 951,592 7,672.182 951,592 7,672.182 977. 465.265 321.852 1.000 10.387.985 881.825 288.888 283.8B) 1,434.596 115.269 38,639 136,738 191,877 760,512 7 Analysls of totsl expenditure ditecuy •ll0￿led ct Suppwi 2022 Rai5(ry funds <1￿ 51 Ch8rilaty* activitus In¢Xe 61 . School Ma￿e￿a￿tt expaThJknre 430.868 258 4Jl.126 471.8C 566.124 140.043 )6.951 1.645.792 471.8Q6 1.148,405 292,309 2,444.219 4.7B7,865 424,934 115,028 2.2BS.712 2.825,932 157,347 37.238 121,558 316.141 . Tr￿n￿9 afvj de¥ekywl . ￿0J9¢t mana9enwl ¢osts co*$ o)st8 2021 fuThJ8 Inots 51 Chafiabb ac*vit*S Incts 61 . SC￿DI MahTrtenan￿ experk4lurE . and gu￿an(* . Tr¥kni￿a and dEVElopThrt . manJg¢mEnl St1.IC 247 511.353 951.SW2 411.691 152.935 51.763 2.￿.0￿7 951.592 977.094 465.264 7.994.034 10.699.337 418,772 277.113 7,810.124 8.W.256 t39,631 35,216 132,147 Support costs are analysed as folh)ws'. Exwdbjrn on tharttablo acUvlUe% Advke and Training and Proipct guTrdan¢e 0gveloF¥nent m•na9ement Ttstsi 2D22 FirOn￿ and F Adrrth)tstraI￿￿Th 77.379 37.290 42,678 IS7.347 4.372 22.467 10,399 37.238 138,585 11S.128 62,428 316,141 SS.371 9,351 121.556 2022 Tolal fund5 Southwark Diocesan Board for Education Incorporated Notes to the financial statements Year to 31 December 2022 7 Anatysis of total expondithre {c4)nb"nuedl ExFerdAuie Dn Charilab￿ Ad¥*e aThJ T￿Inkn9 Pmio guwjantè rn•nagèm* Toiol 2021 FThnc* and MR i5tralYJn Govemanc 2021 Total funds n.011 3fi95 20.388 11,133 35,216 48.045 73.162 10,940 132,147 123,751 127.959 55.284 306,994 33,211 139,631 AIF costs ￿loCatIOnS are made ￿ the basis ofe5tThated tbme Spent by stsff. 8 Net movèment In funds Nel in funds is sl*d after chargNIg" 2022 2021 st8ff co81$ IrKJle 9) Depreoatim (note 10> Au(Jrtor's rerTKwier8lion [￿￿￿1ng VAT) . Autht worf . 0th8r se￿IC . Prior year Bank thar9es arxl wrt8res1 ￿ bank loans arKI ov8rdrn 1.210.259 192.184 1.132,803 IY2,501 28.693 4.710 4.366 5,068 25.790 6,860 1,110 3,392 9 Employ•• key management pevsonnel rnmunerntion (a) Staff costs 2Q22 2021 Wages and salarie$ Soci81 sewrfy ¢))sts Pen$￿ffl costs 760.WJ 79.908 206,448 1.047,205 869,437 74.045 186.830 J,3f2 163.054 1210,259 2tr2.491 1.132,803 (b) Sfaff numbe The numter of er￿•byeeS ￿nrO the year. calculated on an average he*£Junt basis, 1612021- 161. SouthwaTk Diocesan Board for Education Incorporaled Notes to the fjnancial statements Year to 31 December 2022 9 Employ99 and key managemgnt porsonngj r8rnun•ration (Contin￿1) fc) Higherpaids¢aff The number of employees Nthose emduments fell bthin the followng bands vrds.. 2022 number 2021 mimber £60.000- £70.1)¢xI £70.001 _ £80.LK() £80,LK)1 _ £90.[￿) £90,￿1 . £100.(KQ £100.001- £110.iXKI l of the at*)NE higher patd enyloyees parlicipaled in the Teachers. PensKJn Scheme. Aggregate employer penSIL￿ contn"buk)ns lor the above emptyee5 during the year amounted to £145.76212021- £82.1121. Details of the Teachers. Pension Scheme are given in note 17. (d) Key managemantpersonn Key Mar￿errent personnel comprise Trusl*s logelher with the Director of Education, Assistant Director of Educab"¢M. Financial Controller. Buikling and Capital Prograrrrn Manager and the Of(￿e Managers. The aggregate rem￿r￿tIOn and tenefits by key management Fersonnel during the year was as ftAkrws'. 2022 2021 Renwneration. i￿4Udirg eryloyerfs National In5urarK8 C1)ntritr￿1onS 401,419 96,985 498.404 400,507 101,878 502.385 The above figures do not indude the vJue of staff tirre rechargeable lo SDBE Multi- ademy Trltsl Inole 18). None of the Trustee5 received any remuneration or reimbursed expenses in resF•Ct of their se￿iceS during the year12021 ~ Tr)ne). Southwark Diocesan Board for Education Incorporated Notes to the financial statmients Yeai to 31 December 2022 10 Tangible fixed as80ts Fre2hokl PrLyety tsffi￿ and bNTrland irrPr￿. ¢Wty cornput*r Iwiklirys tri tyuyrrenl Group total Cost At 1 January 2022 Additbns At 31 f*cwnber2022 2.864,0 95.834 1959.884 22.481 2,9B2,385 2,￿,050 95.834 1959.884 22.481 2,982,36S Depr•¢Lqtton Ai 1 J•nuary 2022 Chary8 fcrf th8 year 1.527,859 14).939 1.718.798 3.948 1,$31.80Y 191.879 4,888 1.723.686 22.175 1.SS3,982 305 192.184 22,480 1.746.166 Nett*)ok var 1.1452SI 1.￿￿,191 9).946 13x198 91,886 1.428.077 1 1,236,199 1A28.383 131 D￿rthr 2021 11 Inveslments 2022 2021 and ¢h•rity Listed imiestrnents Investrnent propeths {a) 5,090,680 5,992,852 Ibl 16.630,000 16.210.000 21.720,680 22.202,852 In addilion to the above 1nvestsn￿ts. the chanty also holds 8 £1 investment in the call￿-UP shaf8 ¢apital of its wh)IIy-Thned traling SU￿"diary, Southwark Diocesan Education Servic9$ Limited {note 121. A full revaI￿110n of propety Portfdio wa5.urthrtaken by Rapleys LLP in Marth 2023 and this has been refiected in these valuallor (a) Listedinvestm 2022 2021 Grow and ¢harlty Mthet Val￿ at 1 Jawary 2022 Additions DISF￿5813 Ipro¢xls: t4￿.847. realtyed ILxses." £68.2211 Unrealtsed gains on revalualKJn Mgrkgt value at 31 Decwnber 2022 4.035.352 3.821,730 634623 686.239 1$67,0681 1715.8081 1530,8041 243,191 3.571103 4,035.352 Cash hekf by inv8str￿1 1.518,577 5.090.680 1.957.500 5.992.852 Cost ofl'sted investmenls ai 31 DeC￿ber 2022 3,543.296 4.981,208 All li8ted investments Y•pre deall in on a rttogni3&J 5thk exchange and comprised UK equibes and UK managed fvnds. No indivhdual holding comprised more than 5Vh of the Fortfolio in eiltier the current or prior ￿. Soulhwarf( Diocesan Board for Education Incorporaled Notes to tho flnan¢lal ststements Year lo 31 D￿mber 2022 11 Investments Iwrtinued) (b) Invesfmentproperfes Charity and Grc4Jp freehold operties Group and charfty 2022 2D21 Vduation at 1 Ja)uary 2022 Additions Revaluation in the year valuati￿ at 31 D￿￿nber 2022 16,210.000 22,935.0(KJ 700,000 1280.0001 8.325.000) 16,630,000 16,210.ix)o His1￿￿ cost al 31 December 4,998.161 4,298,161 Addib"ons to inVestr￿t woperb'es include £7C().CM)O in relation lo the donation of a fomier school building at 16 Larcc*n Street (linked lo Sl John's CE Primary School London}12021- £1.600,Crf)O Wa￿V0rth Sl Jthn's). ￿lCh is being held to generate rental incom8 to support the work of the Gharity. On the basis that the chanty's investrnent prcperties have continued lo generate rental yields which are materially comparable to those earned prior to the pandemK, the Iruslees do not crfftsider that there has been any material imp8iTment to the fair y￿Ue of these properties Sin￿ the prevtous valuabon. 12 Investment in subsidiary undertaking The charity ¢Jwns 100% of the issued ordinary share capilal of a Subsidi￿ uTrJertaking. Soulhwark f*crE5an Education seN￿s Limited larrK>unting to £11. which is fegislered in England arml supplies admtnistratNe Servi￿ to the charity and to Schools in the Dw)￿se. The company tegan trading on l Aw'l and its iesulls for the penod and assets a￿1 14abilibes have been conSol￿ated into Ihe chanws financial 51aleff*nts. Totsl InC￿e for the year was £613.578 {2021.' £608.660}, 9ross profrt was £417.05712021.' £565.9471 and total administratNe exFendibJre was £1￿,522 (2021.. £166,748). The nel profit after taxation was £nil (2021- £nill after recognising gift aKled donats.ons payable to the parent charity under the conditions of its Memorandum and Arb"des of Association of £417,057 (2021.. £399,199). 13 D•btors Amounts l*ling due bthin one year. Group 2022 barfty 2022 Grwp 2021 Charity Othef debtors Pr&p*ymèntsand a￿Ued 199.216 169,$62 36B.778 122.709 129.191 251.9DO 91.286 $8.333 147,619 51,559 17,549 69,108 Southwark Diocesan Board for Education Incorporated 47 Notes to the financial statements Year to 31 D￿mber 2022 13 Deblors {continued) Amounts fallin9 due in rrwe than one yw. Group and Group and Charity Charity 2022 2021 Arne￿nts due fr(xn SDBE m￿t￿AcadeMY Trust 150.000 150,000 Amounts re￿￿￿￿e represent funds invested in the SD8E Mu[￿AcademY Twst to fund ils early development. Whilst there is an understanding b81ween SOBE and the Trust that these fvnds are to be ￿paId. there is Th) obh'gat*)n for this to take place within the nexl 12 months. 14 Creditovs Amounts falliry due *ithin one year. Group 2022 charfty 2022 Grtyjp 2021 Charty Tr•* rJedrfors Othercredito Conduit creÉtor AccnJaLs and 1leferr•J kncc Amunts lo uTrYewlaki Deferred ￿9$e prerwm Ise• 606.337 132.019 S90.697 100.971 1.279.551 372,554 1,2￿.492 383.717 742,639 614,459 lo,￿1 1.179.J 1.020.740 2.402,744 2,287,469 Amounts falling due in n￿re than year. Group and Group an¢J ¢lwrity Charity 2022 2021 150.OIXI 944,000 1.094.0ty) 150.IXJO 952.000 1,102.OCXI D&ferred Highsho￿ ￿ase premium Amounts rwatrAe lo Southwath 0￿￿eSan Board of Finance represent the drwdown on 8 loan made available to SDBE to fund the earty development of SDBE MultiAcademy Trust. There is no requirement for any orall of the balar￿e lo bo repaid in the nexi 12 months and therefore the full amount has been presented as falling due in more th￿ one year. The deferred Highshore lease ryemium represenls Ihe remaining balance on a premium of £I,000.(XQ rec*ived by the chanty during tr*e year ended 31 De(tmber 2017 in ￿4)eCt of a 125 year le8se ofthe HKJhshore School site lo Ihe Mayor and Burgess ofthe London Borough of Southwark. The premium is being released to the Statement of Finar￿181 Acts"vities ¢)ver the life of the lease. As such. £8.000 is indLKled under accNals and deferned income falling due thin one year. with the remaThJer falling in morn than Or￿ year. Soulhwark Diocesan Board for Education Incorporated Notes to the financial statements Year to 31 December 2022 14 Credllots (contin￿d) The n￿vements C￿ deferred ir¢LYne are analysed as folkAMs.' 2022 2021 Broughl for￿￿ as at 1 JarAwi 2022 Released in the year New deferyals in Ihe y Carried fcrfwafd as al 31 Decwnber 2022 1,088.179 1,087,417 1136,1791 {127.41n 132.416 128.179 1,084,416 1.088,179 The defeffed income b*an￿ represents.. + servi￿ iriLX)me ielatirwj tr) perKKls after 31 D￿ernter 2022 of £132.416 P021'. £128.179}. arKJ • Deferred lease premium Ir￿ome idab.ng lo the Highshore lease, split btheen £8,000 included in ¢xedilors falling due within than one year12021.. t8,0001 and £944.￿0 included in Cfediiors falling due in than one year12D21.. £952,000). 15 Analysk* of grcwp Iurbds Anatysis of grnup netassets behyeen funds 2022 Totsl nd5 Gwwal Prts￿rty Rest￿cted Endo*Thont fuThJ fundB TaThgib￿ fixed assets sted inveslrrw In*slffwnl protert Na uJNeni Ordtslitiès} ass NLytroJNent a$5¢ts Nr•n<¥N¢ni 1obi6tss 1.2J6.199 1.2￿,19 S.Dg0.680 16.630,000 3.073,136 150.000 1944,0001 11.094.000) 249,693 2S.086.015 4.146.364 7￿,964 179.J52 I,ow,000 14.541 IS￿30,[ 317.483 11,264,9021 4,006,014 150,000 11SO,QOOI 4.770.978 2.881,280 17,183,602 D•5grnatod pioFwty ROStsithd ENlowm• JThY lu￿15 funds 2021 TotAI ltsnd$ G8nar81 t￿ed assets Lthd investmtnts IDve51menl Nèt cuiieni Uiatxithsl assets Non-cutwenl assets N￿￿j[w8n* liabldies 1.428.382 1.428.382 5,992.851 16.210.000 1873.5691 150.0 1952,0001 11.102,Tr)1 240,416 ?1,805,685 4,751,893 1,C*3.747 177.211 1,COJ,¢Y)O 15.205 15.210,( 199.182 11.339.1YII 251.194 150.rKKs I150.C￿lI 1.314,942 3.412.743 16.837.564 Southwark Diocesan Board for Education Incorporated 49 Notes to the financial statements Year to 310e¢ember 2022 15 Analysls of group fund5 {continued} Roconclllatlon of funds BolwKe at 31 Decom￿r 2022 g/lanG¢ ai 1 Januory Offlo Ewndlur• Ilos*¥l Trnnsf•r¥ 240,416 ii.oooi 249.893 $94900 1471.8061 1510.D661 451&019 12.192.610) 1.863.Cl 1.314.942 160,0001 64,174 2,834,343 1.672.461 4.770,978 VASCA capital fu￿$ Olhor restrided lunds 4191.942 12.675.906) 160.0001 Property Croy¢on stA￿d￿￿& Furvj 11.830.085 700.0 117, 817,996 1191.#781 I280,0￿) 17.059,007 124,876 17.183.682 16N7.564 If91I7al 12aO,OOD} G•neF*l fuvth IlvKluany tradkng Ilm￿ o1£11.7551 To•￿ unr•stytthdfvNIs 3.411743 1.858.81Tr4 11,919.0811 ISJOM041 20,250.307 I676,600 12,110,959) 1810,8041 60.000 2￿81.462 160,OODI 20.065,144 21,eo4665 8.879,019 14,787.8851 1810M041 Z6,OB6,015 ea1•Th￿ at 31 Der*mber 2021 1 January 2021 Gaiisl (lo8￿) Trnnsl8 EndG*Tnnt fijnds tJ3.416 8.103 11.000) 11031 240,416 Re5trtrthJ funds 177.819 1.819.496 1.9B6.722 3,964.￿ts7 534,076 51.5921 S￿4.622 (T,672.1821 13.024 1136.7381 50S1,721 {8.760.5121 239,69 VASCA c•pital fvTrJs IY8.Wl 1,863,CQ8 1.314,941 239.6 t*svJnated knnds Property fvnd Cmydon StAnd￿3 Fu￿1 2I55S.885 1.6￿.( 139.057 59.499 23.694.942 1.659.499 (8.325, 16.830,885 6.879 16.837,564 1191.87n 1191.8771 (8.325.w)I GeneralfvThts (Jnc*AuwJ t￿31r￿j lun¢ts of £11.7551 3.6C6.403 1.714.448 11,945,949) 278,434 2?.3￿.345 3.373.947 12.137.826) (8.046.$661 P39,5931 3.412.743 39,5931 20,250.307 31,517.798 9.233,771 110.899.338) 18.046,5661 21.805.865 Southwark Diocesan Board for Education In¢orporaled Notes to the financial statements Year to 31 December 2022 1S Analysb of group fvnds (contin￿) Endo%•Tnentfunds repYesenta fijnd held under a Section 86 orderand a fund setaside under 8 Charity order to devdop Church of EThJland education. The Extemal Pgriodic Maint•nanv Scheffle is a seh8me deve￿￿￿ by the charity on a voluntary subscripb.on basis to ensure that all the schcols in the DI￿Se can maintain Ihe external fabric and structural elements of their buildings. The fund tsalan￿ carried forward represents the accumulatKJn of incc¥ne over ey4)enditure which is available lo me81 th8 Govemors. 10% liability for ongriro 5cheme5 of maintenarte works. The DIKesan grnntrestricted lund rejates lo funding wovwjed by the DiLxese of Southwafk lo fund a sF)eor￿ wst and thaplaincy support. The Croydon St Andre￿8 ¢apilal funds represent rewjts of capital fvnding from a clos school. Nthich have been applEd to i{r￿ment works at that s¢hool lo keep the property compli￿1 insured. Other restricted funds wesent assets arising from the disposal of fedundanl school buildings to be dOoyed by the Souttrmark Diccesan Board of Educab"on under Section 554 of the Education Act 1￿. Such fuTrJs can be deployed (directly and indirecllyl for the eveknpmenl of exisling schools of the prowsion of new schwls Y￿1n DirKese of S(NJlhwath. Suth Schwls are lo fdkml the tenets ol the Church of England. The designated property fund rewesents the net book value of the fixed assets and invtslment properties at the b8[a￿e sheet dale. The d￿l9￿ated Cyoydon St Andrew$ fvnd represents irthme rereived from the rental of the St Andrevls school t¥JildirKJ ￿lch the charty intends lo ap￿Y towards further retuth'shment work at Ihe school. VASCA fund - The buildirg proFcls fvnd reJ)resenls the income reraved frorn the VASCA grant the Departrnenl for EducatKfft and the associated c(￿MItMent0n the fund. The funds are restricted lo capiia and maIntenar￿ projec15 at the sch(KJls. VASCA funds mu51 be commilled to woiects or retumed lo the DE if not committed within years of the grant dale. Southwark Diocesan Board for Education Incorporated 51 Notes to the financial statements Year to 310e¢ember 2022 16 Conduit funds- uphal projects 2022 2021 Irtrcorre Expenditu 6.783.279 ,739,￿1 16.783.279) 18,739.9)1 The irwm represents fijnds reCeiVa￿e from Salix FinanG8 Ltd, DevrAved Formula Capital from schoJ15 and Governor and Lccal Authority Contributhxs lo building projeols. while the expenditure figure represents SUPF4ier and contrxlor costs incurred and commilled durirwj the year. Unspent commrtted costs are realised in the forthcoming financtal year and represent timwvJ difference5 in wuiring the funds wth their related expenditure. The main reasons fcy the d￿rease in 2022 are reduced fvndiThJ from the Salix Finan￿ Company and associated govemor and Devo￿e￿ FomuLg Caprtal conlrtbutions. These are recognised as income and eX￿ndItUTe as discussed in note 1 and the aceountsng poli￿e5. The Conduit FurKI exisls to channd fvnds sourced from the public sector into capital and maintenartce Fwoiects in schcds" it posts no proffil all its funds are committed. A5 al 31 Decemter 2022 the combined lolal assets of the ftjnd {l￿1￿cling accrued income) amounted to £6.8m. The ccrfnbined liabilit8s were Identi￿1. A(￿lti￿ally, as at 31 December 2022 the charity owed £nil lo the conduit fvnd 12021.. £nill. Separately, amounls held on behalf of hoojs as part of the Devofved Formula Capital Stheme Iwhid) are ultimately destined for the conduit fund) V•Ere £0.6m at 31 December 202212021". £2.49m}. These fvnds represent agency Cash balar￿S in the thanty. arKI are not I￿lL￿d in the charity's fvnd balances. 17 Penslon and simllar obllgalions The Group's employees trEk)ng lo ly￿ principal pensty)n sc1￿Me5. the Teachers. Pension Scheme (TPSI and the Church of England Church Workers Pensi¢)n Fund ICWPFI, which are of the defined benefit type. assets of the xhemes being held in separate Truste administered funds. Both the TPS and CWPF fund assets a￿ not appoits.oned lo indiwdual employing bojies in ￿ fund and there[￿e both constrtute collective defined benefit pension schemes under Financial Reports'ng Standard 102.. Secti¢￿ 28- Employee Benefits. The total PenS￿n cc6t wa5 £206,44812021'. £186,830). There were no cre¢Jitors falling due within one year at either 31 December 2￿2 or 31 December 2021. The Teachets. PenS￿n Scheme rrps) is a statuw, contrit*Jtory. defined benefit scheme. governed by the Texhers. PenS￿In Stheme Regulations 2014. Membership is automatic for teachers and lecturers who are or have previously been emptyed al eligible in5titulions. Teachers and teclurer5 have the optb)n to opt out of ￿ TPS Idlowng enrolmenl. Southwark Diocesan Board for Education Incorporated Notes to the financial statements Year to 31 December 2022 17 Penslon and slmllar obligatlons {ccrttinued} Teachw5'Pension Scheme (Gonb"nued) The TPS is an unfunded scheme to wh￿h tK*th the memter and employer makes contributions. as a percentage of salary- thes? conlribut*)ns are credited lo the Exchequer. Retirement and other Fension b￿ffitS are paid by putAK provided by Partlamenl. Under the definitions set (xrt in FRS 102, the TPS i8 an unlunded multsemployer pensi scheme. The charity ha5 accounted for its contributK)ns lo Ihe scheme as if tt were a defined contn"bub"on scherrÈ. The charrty has set out the infrjnnalbon awL4ble on the Setherr￿ below. Valuatlon of the Tea¢lRts' Penslon Scheme The Government Actuary. using norn￿1 actuarial prinaples. C￿ductS a formal actuarial review of the TPS in a¢￿[dance %Mth Ihe Put41¢ servi￿ Pension$ IValuab"ons and Employer Cost Capl Difecbon$ 2014 published by HM Treasury every 4 years. The aim ofthe review is lo speufy the level of future ccmtributions. Actuarial scheme valuations are dependent on assumptions about the value of fubjre costs. design of benefits and many other factors. The lalesl actuarial valuab.on ofthe TPS was carri&J out as al 31 March 2016. valuab'on report was published by the Department for Education on 5 March 2019. The key elemenls of the valuation and subsequent consunation a￿. • employer c￿tribUtIon rates set at 23.68% of penSiona￿e pay {induding a 0.08% adMiThStrati￿ levyl; • totsl scheme li8lxlities {pensKY6 curwtly in payment and Ihe estimated ￿st of future trMefils) for Sery￿e lo the eff￿tive (late of £218,ICQ million and notional assets leslimaled fvture contribub"¢)ns tcgett*r ffith the notional investments hekd al the • valuation datel of £196.100 million, giving a nrAh)nal past seN¢e deficil of £22,000 milliDn,' and • the SCAPE rate. sel by HMT, is us&J lo dete￿n￿e the notrjnal investment return. The current SCAPE rale is 2.4Yi atove the rate of CPI assurned real rate of relum is 2.4Qh in excess of price5 and in excess of earnings. The rate of real earnings growth 15 assumed lo be 2.2tsA. The assum￿1 nominal rale of return including earnings giowlh is 4.45%. • The next valuation result is due to be imFAemenled from 1 April 2023. The empjoyerfs pen￿￿ w5ts paid to TPS in the year amounted to £104.92112021.' £80.3431. A copy of the valuab.on rep)rt SUP￿ting dccumenlation is on the Teachers, Pensions website. Southwark Diocesan Board for Education Incorporated Noies to the financial statements Year to 31 December 2022 17 Pension and slmllar obllgattons (continued) Church ofEngland chU￿h WO￿ Pension Fund valuattt￿ oflhe Church ofEngland Church Wort(ers PensKJn Fund Soulhwark Dicrtesan Board of Education {DBSI participates in the Defined Benefits Scheme sectton of CWPF for lay staff. The sche￿ is administereil by Church of England Pen￿On$ Board. which hofds the assets of the schewts separately from ￿se ofthe Employer and the other participab"ThJ emptoyers. CWPF has seclions. The Defined Benefits Scheme The pens￿ Bulder Scheme, which has h¥0 subsections: deferned ￿n￿ty section known as Pension Buikler C￿S[C. and. cash balar￿e sert*)n kr>Thvn as Pension Builder 2014. Ddined Ben8ffts SGlJem& The Deffi￿ Benefi15 Scheme fDBS') section of the Church Workers PensN)n Fund provides benefits for lay stsff iN8sed on final penstonabyo s￿arleS. For ftTrnding purpjses, DBS 1$ dNkled into Su￿poolS in respect of each participating employer as well as a further Sub-pX*￿. kncvm as the Life RL%k Pool. The Lrfe Risk Pool exists lo share eertain risks befv￿￿ empwrs. includiThJ those relating to mortalty arKI post-retiremenl Investment retums. The division of Ihe DBS into su￿pr*s$ is notiorwl and is for the wrFM)se of calculaling ongoing contributions. They do not alter Ihe fact Ihal the assets of th8 DBS are held as a single trust fund out of which all the teneffts are to be kyovided. From tsme to time, a nolional premium is transferred from ￿1p￿er$. sU￿￿)01S to the Lrfe Risk Pool and all Fensi¢)ns and death eneffts are paid from the Lrfe Risk Pool. The ￿heIr￿ 15 a Muth"*M￿oYer schwne as described in Section 28 of FRS 102. tt is not pThsible to attrrbute DBS assets and li8bilth"e5 to specif¢ employer5. since each employer. through the Life Risk Section. is exFrfJ*J to &iuarial risks associ*d with the ¢uffent and folmer employees of other enbties parbcipab.ng in DBS. This means that contributions are accounted for as if DBS vRre a defined contrilwtion scheme. The pensions costs charged to the SOFA during the year are contribub.ons payable lowards benefrts and expenses accrued in that year12022.' £101,526., 2021.. £1(A.519). If. follry•ving an actuarial waluaN)n of Ihe Life Ilsk Pcol. there is a sutplus cf de￿it in the pool. turther transfers be made Irom ts Lrfe Risk Ptsjl to the employers. Su￿poOlS, or vir versa. The an￿unts tg te transferred land their allocation bets￿en the sutFpoolsl will te settkd by the chU￿h of England Pensions Board on the advice of the Actyary. Southwark Diocesan Board for Education Incorporated 54 Noles to the Ilnancial statements Year to 31 December 2022 17 Pension and $lmllar obllgatlon5 leontinuedl Church ofEngland ch￿￿h Penslon Fund {continu8d) Defined Benefits Scheme {c(hryLTnue(lJ A valuation of DBS is carr￿d out every three years. The most recently finalised was carried out as at 31 December 2019. In this valuation. the Life Ri%k Section was shown to be in deficit by £7.7m and £7 7m was notionally IrarBferTed from the employers. sub-pools lo the Life Risk Secbon. Thig Increased Ihe EmtAoyer contn'butk￿S Ihatwould olhemise have been payable. The overall deficit in C6S vrds £11.3m The next actuarial vauation is due at 31 December 2023. Followng the valuation. the Emfver has entered into an &3feemenl with the Church Workers Pens*)n FuTrJ lo pay a ¢(￿trIbU￿0n rale of45% of pensionable salary and expenses of £5.400 Fer year The legal stwcture of the is s￿h that if another employer fails. the employer could become res￿nsIble for paying a share olthal employers Fensicfi liabilities. 18 Related party transactlo The Souihwark Diocesan Board of E¢knation 16 a rThnpany fimited by guarant￿. The resu116 ar￿ balance sheet of Styjthwark Edutstion Services Lirnil￿ ISDES) are consoli(Saled into these financial statements. The Southwark D*￿esan Board of Education has taken a¢fvanta9e of the exempbon5 in FRS 102 and has not reported transactions betsveen il an(1 SDES. During the year ended 31 Decemter 2022, the group receNe¢l grant fvnding amountrng lo £336.795 12021.. £333,460) in resFecl of the Diocesan Measure and letti'ngs income of £20,31312021'. £19.21XII from the scyJthWa￿ Diocesan Board of Finance and South London Church Fund. wh￿h Is a rdated party as a result of sharing a number of Tfustees with the charlty. At the yeaf end. the charity owed £150.OC(112021". £150.0001 to the Dio￿an Board of Finance in resFect of a loan used partty to fund the eatty devek)pment of SOBE Multi- Academy Tfust (note 14). During Ihe year ended 31 D￿rn￿Er 2021, the group received incon* of £11.490 12021.. £11.1541, indijding VAT. from Bacons College in respect of the provision of a service 18vel agreement. £nil was owng at 31 202212021.. £nill. &xon's College is a related party as a result of shariNJ a number of Trustees wlh the charity. During the year ended 31 D￿M￿r 2022. the group received income of £121,088 12021.. È143.8121 i￿ludIng VAT from the SDBE Mulli-Academy Trust in respect of the provision of a swvice level agreement and ackjibonal alwsory and Consultsnw work. AS al 31 December 2022. £11,613 remained to be rerriwj 12021." £25,640). SDBE Mults-Academy Tfusl is related party by wrtue of the fact thal it shargs a nurni*r of trustees with the Ch￿Y. Southwark Diocesan Board for Educalion Incorporated Not•s to the Itnancial statements Year to 31 December 2022 16 Related party transactlons {contin￿) In 2017 the charity advanced £150.000 io Ihe SD8E Mulli-Academy Trust in order to fiJnd ils early ¢JeVelO￿Y￿fit. At year eThJ. £150.000121r21.' £150,CIJOI was Teceivable in respect of this balance. ￿lIst there is an understanding befv￿en SDBE and the Multithcadery Trust that these funds are lo te repaid. there is no obltgation for this to take place within the next 12 months, thwefrKe this amount is presented as a debtor falling due in more than one year IrKJte 13). 19 Funds held asagenl Durir4J the yeaT. the charity xted as an ￿en( with interest receivable £2,08012021: £821 being paid into accounts held on behaw of varvjus Schools ur¥Jer the aegis of the Di¢￿e$e of S￿thWark. No amunts were PaKI over to these sckjols in either year. At the year ond, balan￿$ of £160.243 were hekl in designaknj bank ￿l￿nts separate from the charity aTh trading sub5bJiary'5 designated bank accounts {2021: £158,162). As the Trustees have responsibility for the application of ltr￿ (w¥J5. lh8 income arNJ bank balances have been exduded frfm the financjal statements. 20 Membffl¥ The company is lirnited by guarante8 and the liabiltty of lh8 members is limited lo an amount not exceedwKJ £1. Southwark DFocesan Board for Education Incorporated Notes to the financial statements Year to 31 December 2022 21 Consolklated statement oi financial acllvlil•s- Year to 31 December 2021 Unreslrthl knds GEnErdl Tolal 2021 Talal 202 N¢4 fror Grants and dwai haritabk aCIN￿8$ Other trading 8ctyvii*5 In¥eslmenls Tot81 incorr 351.8Tr) 71,395 554.786 736.467 1.714.448 1MI.i>J) 5.304.622 534.076 7,256,422 15,158.835 605.471 62Q,651 554,786 547,401 817,092 951.637 9.233,771 17.278,524 59.499 1fi59.499 13,023 5.851.721 ts.103 8.103 Expenditure C￿.. Raislw funds Charilable 8¢174￿e5 Total exk*ndrturo 511,353 1.434.$96 1.945,949 S11.J53 10.387,965 10.899.338 345.940 6,095.714 6.441.654 191.877 191.877 8.760.512 8.760,512 N81 intfjma {eX￿nditUre) befcre investMe￿t9aw)s Ir31.SOI1 1.467,622 (2.908.791) 7,103 (1.665.567) 10,836.87D Lknreah5ed losses on in*stmenl pmperles Nel gams on kstad investmen15 I8.325.1￿) {8.325.LXIDI 278.434 278.434 217,871 Nol Mic4Jm6 Ièxpndilu￿I belorE transf*s 46.933 16.857.378) (2.￿8.791) 7,103 (9,712.1331 11.054,741 Transf8rs b8t%W8en luTrJs 15 (239,5￿3) 239.696 11031 Net N¥)veft*nt ftmds 1192.6f4Jl 16.857.378) P.W,0951 1g.T12.1331 11.1)54.741 ReconalLqtK)n offvrnls.. Futhds brought rorw8rd 811 January 2021 Funds urried knrd al 31 Decerntr*r 2021 3,605.403 23.694.942 3.984,037 233.416 31.517.758 20.463,U57 Is 3,412.743 16,837.564 1.314.942 24D.416 21.805,665 31.517,798 Southwark Diocesan Board for Education Incorporated 57