Charity registration number 525790 Company registration number 85176 (England and Wale51 CHESTER DIOCESAN BOARD OF EDUCATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CHESTER DIOCESAN BOARD OF EDUCATION LEGAL AND ADMINISTRATIVE INFORMATION Members of the Board of Educatlon The Bishop's nominees.. Ven Dr M Gilbertson Mr D Hermitt Members elected by Dioc&san Synod..- Revd L Bannon Profe550r P Bowden Mrs M Cruxton Dr D Cumber13nd Dr C Gordon Mrs S C Hud50n Trustees Ven Dr M Gilbertson (Chairl Revd L Bannon Mrs M Cruxton Dr D Cumberland S Hudson Dr D Walter Dr C Gordon Mr P Gibbons (Co-opted) Rev Dr J Arnott (Appointed 31 January 20231 IAppoint&d 31 Janu3ry 20231 (Appointed 31 January 20231 (Appointed 31 January 20231 (Appointed 31 January 20231 IAppoint&d 31 January 20231 Mr D Hermitt Rev J Brid8etnan (Co-optedl Mrs C Speed (Co-opted) Rev C Corley (Co-opted) Secretary Mr C Penn Charity number 525790 Company number 85176 Registered office Church House 5500 Daresbury Park Daresbury Warrington Cheshire Auditor Mitchell Charlesworth (Audit) Limited 24 Nicholas Street Chester Bankers National Westrnin5ter Bank plc 33 Eastgate Street Chester CHI 2AU CHI ILG WA44GE CHESTER DIOCESAN BOARD OF EDUCATION CONTENTS Page Trustee5' report 1-18 Independent auditor's report 19-22 Statement of financi31 activities 23 Balance Sheet 24 Statement of cash flow5 25 Notes to the financial statements 26-42 CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Tho trusteÈs are pleased to present thÈir annual report and financial st2temÈnts for tho year ended 31 DetÈmbÈr 2023. Tho financial statements have been prepared in accordance with the accounting policies sot out in noto I to the financial statements and comply with the charity's Memorandum and Articles of Association of 1943 amended on 24 April 2017, the Cornpanies Act 2006 and "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 IFRS 1021" (effective I January 20191. Objectives and activities The charity acts a5 the Education Authority for the Church of England in the Diocese of Chester, in accordance with The Diocesan 8oard5 of Education Measure 2021. The object5 of the charity are.. to promote or 3SSlSt in the promotion of education in the Diocese that is consistent with the faith and practice of the Church of England., to promot& or assist in the promotion of religious education and religious worship in schools in th& Diocese,. to promote or assist in the promotion of church schools in the Diocese,. to promote to-operatitsn between itself and other persons concerned with education in the Diocese. One of the principal activities is the adrninistration of grant claims in respect of building and maintenance work carried out on school properties together with 311 other re13ted matters which promote the efficiency of, or otherwise bènefit, the schools in the Diocese. This administrntion has become a more central feature as the grant funding is paid directly to the D8E for In addition, the charity has continued to provide assistance to Chester Diocesan Academie5 Trust ICDATI. It actively encourages schools considering academy status to join CDAT, it is dev&loping its wider academy strategy which is to be launched in 2024. The company a150 acts a5 Custodian trustee for a number of specific tru5t5 (referred to a5 Specific Purpose Fund5 In the attached account51. The Strategies etnployed to achieve the charity's objectives are to.. Administer and advise on building work. particu13rly in 3ided schools in the Diocese,. Advise and support governing boards in aspects of their rolo such as appointments, admissions and ethos,. Support and promote quality religious education and worship in church schools in the Diocese,. Support staff and governors through denorninational Inspection procedu￿$ liaising with the C of E centrally and offering training and advice,. Supporting staff and governors through the Ofsted inspection proce55,' Provide training opportunities for 5t8ff and governors on aspects relating to church schools.. Provide pastor31 and other support to schools experiencing difficulties,. Provide pasto￿1 support for church school leaders,. Promote wellbeing and provide opportunities for professional development,. Facllitate school collaboration and support,. Offer opportunities for children and young people tts corne together with other5 from church schools. Advise and support schoo15 converting to academy 5tatUS.' Work with other Diocesan Board5 of Education in the DBE Services group to provide high quality services to schools,. Work with Local Authorities, academy trustees, the DfE and Regional School Director to support educ3tion in church schools across the Diocese,. Represent the Diocese on committees and groups involved in school work,. and Advise and 5UPPOrt the tru5tee5 of church educational endowment5 held wholly, or partly for. tsr in connection with, any church School. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 In ordÈr to track the success of thÈse objÈttives, the D8E obsÈNes a number of performancÈ indicators.. The uptake of subscriptions to the Family ol Schools membership., Increased enBagernent and 5ign-up by schools to DBE facilitated or endorsed CPD (Continuing Profe55i0nal Developrnentl training,. Developed and strengthened engagement by school leadership in networks and individual contact with executive officers,. Successful Ofsted 3nd SIAMS inspections., Improved mental wellbeing of school leadership (notably headteachersl., The engaEement of outside bodies with the work of the Board,. and Clear links with the work of officer5 and the DBE vision. Performance The 8oard'5 vision is.. Being deeply Christian and for the common good. our Schools will be communities which are: Loving in relationship5,' Ambitious in aspiration5.' Bold in actions. DBE strateEV and operational activities are influenced by this vision and are delivered across six key principles., relationships, outcomes, impact, resourcing, structures and trust. Relationships The Board ha5 continued to support and develop its relationships with a number of organisations. primarily Diocesan schools. and has worked to strengthen these throughout the ye8r through a number of activities. A focus on headteacher and senior leadership w&llbeinB has been man3ged through 2 wellbeing programme for he3dteachers which is split into two cohorts, one for experienced headteachers and one for those in the early years of headship. Headteachers were encouraged to attend the progomme and Chairs of governors to signpost their leaders to it. The programme run5 throughout the academic year and $0 2023 covered 4 cohorts. Trainin8 for governor5 wa5 offered throuBhout the year to ensure governor5 were aware of their dutie5 Wlth regards to wellbeing. Individual pastoral sUPPOrt W35 the most irnpactful work undertaken by executive officers as they supported leaders who needed additional individual support for a number of differing reasons. After reviewing the effectiveness and uptake of officer led headteacher cluster led meetings the decision was made to suspend these from September 2023. D8E officers continued to attend school led clusters inputting D8E information and supporting collaboration. Headteacher surgery and wider DBE briefin85 were planned into the CPD offer to engage schoo15 acros5 the Diocese. Support for Chairs of gov&rnors had be&n identified as a priority in the previous year with a number of schools finding it a challenge to elert a Chair of th&ir Board. Termly surgeries for Chairs continued to b& offered to support them in their role and ensure that they were aware of DBE policies. These wore well received, and some Chairs continuo to meet separately in groups initially facilitated by the DBE, providinE a supportive network. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 For st3ff in schools, a number of networks have provided support and helped dev&lop relationships with staff beyond he2dte3chers, for example, RE subject leaders, deputy/assistant headt&achers, and collectiv& worship leaders. A rich proeramme of CPD has been on offer to support leaders, staff, clergy and governors across the Diocese which has been well attended. Support for the rn05t vulnerable within the Diocese ha5 continued to be a focus for the work of the Board through the Disadvantage group and SEND network alongside the Board's involvement with external partners. including the Church of England Foundation for Education31 Leadership ICEFELI in supporting Ioc31 peer support networks on Trauma Informed Practice. These h3ve continued to impact practlC31 work in schools to support these groups and 31so support the professionals as they develop their provision by sharing idÈas and good practice. The Board is involved in ￿riouS partnership5 working both acros5 the region and nationallyi including the Diocesan Directors of Education network, the Diocesan Governance Group IDGGI, Diocesan Admi55i0n Group IDAGI, RE advi5er5, North West Co- ordinator5 of Governor Services INWCOGSI, and CEFEL. These have ensured the DBE 15 kept informed of regional and national developments and also ensured the DBE has a voice and influence in these groups. Collaboration with other Diocesan Boards of Education in the northern province has been positive over the year through DBE services and the sharing of good prattice and resources on governance, RE, SIAMS, and other aspects of the Board's work. The very successful Christian Leadetship course finished and started another cohort in September with eight candidates from Chester starting. The Board continued to work with its nine Local Authorities providing support for maint3ined schools and ac3demies with regards to Ofsted and data outcomes, whilst maintaining its cor& purpose of supporting the distinctive natur& of its church schools. A number of schools rèquired closer collaboration with Dioces3n Officers working together to provide support with regards to leadership and school improvement. The Board also has representation on Local Authority Children and Young People Scrutiny Committees and Standing Advisory Councils for ReliEiOUS Education ISACREI. In order to 5UPPOrt relationship5 between schools for children and pupi15, the Board ha5 offered training for school eth05 groups, encouraged 5choo15 to undertake the Archbishops, Young Leaders Awards and supported school Vision ambassadors as well as bringing church school children together in the successful annual year six leavers, service. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Outcomes In addition to Ofsted inspections, Anglican church schools undergo a denominational inspection under the auspices of the Statutory Inspection of Anglican and Methodist Schools ISIAMSI (Section 48 01 the Education Act 20051. The charity continued to support schools before ènd after denomination31 inspection and these provid& great benefit in further developing the Christian foundation of the schools as well as offering a means of pastoral support to senior le2ders. Schools due for inspection were invited for specific training in order to prepare them for inspection as well as providing general training through the CPD progornme. Between January and September, seven schools We￿ inspetted under the SIAMS schedule.. Six of these were judged to be good. one was judged to be excellent. From S&ptember 2023 3 new framework w3s impl&mented, this removed the gradings and replaced them with a detailed narrative of the strengths of the schools and areas of development followed by one of two phrases to svmmarise. These phrases a￿.. The inspection findings indicate that the school is living up to its foundation as z Church school. and is enabling pupils and 3dults to flourish. Or The inspection findings indicate that the school h3s strengths, but that there are also issues that leaders need to address as a matter of priority. From Septernber six schools were inspected and all were summarised as living up to their foundation as Church schoo15, and enabling pupils and adult5 to flourish. As of the end of 2023, 100 schools wÈre judged to be good or better under the Ofsted framework. Forty eight schools were inspected durinE 2023, much higher than in previous years and reflective of Ofsted's desire to ensure that all schools are Inspected post-pandetnic at least once by July 2025. Three 5choo15 retained out5tandinB StatU5, one moved from outstanding to good, twenty-nine remained 8ood, live rnoved frorn Requires Improvement IRII to Good. Seven moved frorn Good to Require5 lrnprovement, two moved in to Special Measures from Requires Improvement and one Special Me85ure5 school was monitored and remain&d in Special Measures. A pattern emerged of schools improving from 'RI', having implemented robust curricula, as well as cl&arly focusing on impactful leadership. Schools th3t moved to 'RI' often had not moved as far or as quickly in these areas,. those deemed In2dequ3te had not focused on impact of leadership or standards and sometimes had more serious areas for improvement, including safeEuarding. Following the publication of the SIAMS annual report, the Board has encouraged schoo15 to look in p3rticular at the need to develop opportunities for spiritual development and courageous advoc8cy. The aim w8S that by the end of the year more schools were 3ble to 3rticulat& the language of spiritU31ity 3nd provide more opportunities for spiritual development for both children and adults. Schools should have also gained a greater understanding of courageous advocacy, in turn supporting children and young people to identify injustice and take action, thus impacting wider society. This work is ongoing Wlth a nutnber of schools taking the opportunity to h05t bespoke training on spirituality led by a Diocesan officer a5 well a5 attendance at a conference on thi5 topic h05ted by Liverpool Diocese. The Archbishop of York award5 was regularly highlighted to schools and 3 number of schoo15 have taken on the programme to SUPPOrt their courageou5 advocacy work. The close working relationship betw&en the Board and Chester Diocesan Acad&mies Trust ICDATI continued to dev&lop throughout the year. In the previous year the Board had expressed its strong preference for diocesan schools to join CDAT. This has had a positive impact on the Erowth of CDAT with the Trust now being 14 schools strong and a number of schools waiting to join. Officers of the DBE have worked closely with officers of CDAT with both organisations working together to support schoo15 acr055 the Diocese, both in CDAT and LA tnaintained. The 5ucce5s of CDAT ha5 meant that the DBE ha5 had to review its academy strategy for the future and began work, in collaboration with CDAT. to look at the foundation of a second diocesan academy trust. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Impart In order to achieve the outcomes expected, the Board must ensure it has the reqUI￿d impact. The Family of Schools offer is the main source of financial en8agernent with 5choo15, in addition to attendance at training and event5. The Board encouraged all schoo15 to join the Family of Schoo15 and attend training and events by providing appropriate resources and support as well as ensuring a programme of training and events th8t supported schools, current priorities. The Board reviewed the offer before the start of the academic year and uplifted the ch8rBe slightly to cover costs, as well as charging for some additional aspects. A commitment was also made for each school to receive a visit from a D8E officer as part of this offer. Although time consuming, it has enabled the Board to have contact with each one of its schools through the visit as well as helping identify wider and more individual school challenges to help inform future planning. It has also resulted in the ability to link schools based on need and exarnple5 of good practice. To date one school did not buy back into the Family of Schools for financial rea50n5. In addition to th& CPD that is chargeable. the Board offered a wide variety of support that W8s not ch8rged, including cluster groups, briefings, training for Eovernors, support for voluntary aided schools with regards to capital work and general individual Euidance and support. The Board publicises this support through various means including regular bulletins and social media. Schools have engaged well with these offers. In order to encourage greater engagement and thu5 Board impact, the offer of meetings. briefing and training in a hybrid model of in-per50n and virtual allowed those from the extrernes of the Diocese to attend without the need to travel. This has been well rec&ived with some schools preferring to take up the virtU81 off&r and others preferring to attend in person., bv offering both, the Board has been able to support a wider rang& of schools. As highlighted in the SIAMS annual report, the headteacher has the B￿atest impact on the strength of a church school. Through the year the Board, as anticipated, wa5 rnade aware of a number of recruitrnent opportunities to leadership P051tions. DBE Officer5 have 5UPPOrted the recruitrnent of stron8 church School leader5 by guiding governing board5 throughout the 3ppointment5 process at both Headteacher and Deputy Headteacher level. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Resour¢ing Following an extensive financial review in 2021, new centralised systems were implemented, resulting in an efficient cloud based financial recording and reporting system which ha5 had a positive impact on officer workload and thus productivity. A5 this work has developed and become embedded. proce55e5 have become more efficient as work move5 wholly to the cloud- based 5y5tem and DBE Officers become rnore familiar with the 50ftware. There h85 also been the opportunity to rnake the experienc& more efficient for external partners through the introduction of an updated event booking system and the abilitv to P3y for training online. This has 31so en3bled the production of quartèrly m3naBement 3ccounts to the Board, and an increased level of scrutiny and review of the company finances. Aided schools in the Diocese have continued to demonstrate their trust in the charity by having their Devolved Formula Capital IDFCI rnonies held centrally, enabling the Board to allow some Schools to expend rnoney which they will not receive until the following year. Voluntary Aided schools must get DBE permission for capit81 work as well as fund IO% of the tot81 grant-aided costs. In order to ensure transparency, the Devolved Formula Capital IDFCI and Schools Capital Allocation ISCAI monies were separated from DBE central funds and held in desi£nated bank accounts. 5orne monies from CCLA investments were transferred to the 8eneral bank account to assist cash flow following this separation. To further manage cash flow governors are now required to pay their contribution up front and are no lon8er able to defer payrnents. This ha5 been fully cotnmunicated to Schools but sotne schoo15 have Still made application5 to defer. A5 the expectation becornes embedded, there is the hope that schools no longer make such requests and p13n applications with the appropriate finances available. The SCA monies 3re paid directly to the DBE. The Board continues to ensure that projects 3re funded based on appropriate priorities of safeguarding and health and safety. A further focus has been achieving net zero carbon emissions by 2030. A working party has been created to look at strategies to achieve this, with the plan for pilot projects to take place throughout the ft>llowin8 year. Thi5 has taken longer to itnplement than originally planned and so is an objective that 15 to be rolled into future years. Many schools benefited from building work and the support of staff and consultants from DBE Services Ltd. Projects with work over £IOO,000 included.. Completion of projects begun in 2022.. Bridgemere Crowton Christ Church Hartford CE High School Oxton St Saviour's Prestbury Sale, St Anne's St Berteline's CE Stretton St Matthew's Replacement of Flat Roof Covering and Ancillary works Flat Roof Replacement Phase I Mechanical Replacement Works- Phase I Electrical upgrade & repair work5 Flat Roof Replacement Works- Phase 3 Electrical Re-wire Refurbishment of Toilet Areas IPhase 21 Roroofing Phase I New projects in 2023.. Hartford CE High School Hartford CE High School Norton St Berteline'5 S3ndb3ch H&ath St John's Stockport St George's New 8uild & Associated Work5 Mechanical Replacement Works- Phase 2 Main Entrance S8fegu8rding Extension Roofing Works External Building Fabric Repairs CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Human resource is onÈ of the main ways the Board hoped to achieve its objectives. By Énsuring wÈll trainÈd and resourced school staff and governors the Board impacts outcomes for children within its schools. As identified earlier, good leadership recruitment 15 essential followed by induction and support. The 8oard'5 CPD programrne 15 de518ned to develop leader5 fro the start of their career on to leadership. An extensive ECT pro8rarnrne, designed to run alongside the national training, ha5 been developed to ensure teaching professionals underst3nd the distinctivenes5 of church 5choo15 and the impact they have. Training 8nd support for middle 8nd senior l&aders has continued to be provided alongside that for governors and RE leads. The CPD offer remains 8 central focus for the Board and its impact. The recruitment ol foundation governors remains a challenge not just for the Board but nationally. The Board still expects foundation governors to be regular worshippers but will employ an alternative framework of appointment where circumstance5 require it. The Board has continued to work with local parishe5 and national bodies to both encourage involvement and recruit to schools. The recruitment of Academy Directors as well as to local governing boards following varied Articles has added complexity to the situation. The Board's central team of office￿, supplemented by a small number of consultants, has continued to develop the Board's offer and responded to national and local circumstances to ensure Diocesan schools are equipped and supported in all situations. As the Board's academy strategy grows this will add a further workstream to the Board. A5 Chester Diocesan Board of Education 15 an Incorporated Cornpany which operates financially independently from Chester Diocesan Board of Finance, the DBE does not receive any income from local parish churches via the parish share scheme. The DBE is. therefore. responsible for sourcing its own incom& and, due to the financial str8ins on schools. relies heavily on income generated by investments. dividends and rental income from previous school sites. These income sources fund the m3jority of the DBE'S day to day activities to further its aims and charitable objectives, with income from Family of Schools membership and attendance at training courses and Conferences supplementing this income. These resources are rnanaged carefully by the Board to ensure efficiencie5 whilst Still investing for irnpact. Structures The Board of Education reconstituted on the 1st January 2023 following the 2021 DBE Measure. The two committees were renamed from Finance and General Purpose5 and Education Effectivene5S to Finance and E5t3te5 IF&EI and Distinctivene5S, Standards and Governance IDSGI to better reflect the various aspects of their work. Updated terms of reference were also adopted. The Board regularly reflected on its policies and pracrices throughout the year and has updated some practice around SCA grant approval and Risk Management to further develop oversight. The Board has held senior officer5 to account for the offer and impact of the Board on its schoo15, Trustees and wider comrnunities. It ha5 challenged practice and ensured that financial oversight is rigorous. The Board has continued to consider its role in the acad&my system through th& academy working party and discussion at the main Board. Tho publication of new model academy articles and a Memorandum of Understandinz has necessitatod a roviow of the Board's academy strategy which will impact school structures in the Diocese for the future. The academy strategy was carefully con51dered, initially by the Academy Working Party and then the Board with the purpose of ensuring eath church school in the Diocese continue5 to fulfil it5 Trust deed through their governance 5tructure5. The Board a150 identified the need to develop an additional Diocesan Multi-Academy Trust IMATI which will work alongside the current Dioce53n MAT, Chester Diocesan Academie5 Trust ICDATI, to provide support for church schools as they mov& to academy status. This will be a major focus of the work of th& Board for the following year 3S it supports its development and retains oversight of both CDAT and the second Diocesan MAT through its Members. Trust In order to achieve its aim ￿gardIng relationships, outcomes, impact, resourcing and structures, the 8oard must be trusted by all those Ilnked to it. The Board has worked hard to ensure It is transparent, engaging and reflectlve and that it is both supportive and challenging to support the best outcomes for it5 schools. Through its work the Board has continued to support its schools in being Loving in Relationships,. Arnbitious in Aspirations.. and Bold in Actions. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Finantial review Reserves Policy The charity is almost entirely dependent on the income from its investments to support its work. Consequently, investments are maintained, and the trustees would only consider expendinE capitsl in exceptional cases. Despite the continued volatilitv in national and world markets due to the pandemic and Brexit, the reserves have remained fairly stable. The Restricted Fund5 arise out of the sale of school propertie5 which in past years carne under various Educational Endowment Orders and were amalgamated into z uniform statutory trust in 1995 following the provisions of the Education Act 1993. The use of these funds is restricted to the following.. al funding the purchase, or erection of, improvement or enlargement of, relevant school p￿miseS in the area,. bl funding maintenance costs of any relevant school in the area.. cl fundlnE the costs of the admlnistration of the trust and the costs of providlng advice, guldance and resources in connection with any matter related to the managernent of, or education provided at any relevant school in the area. The Unrestricted General Funds held are historic funds 3nd may be us&d for the gen&ral purposes of the Board in 3chieving its charitable objectives. Free unrestricted re5erve5 at the end of 2023 were £1,851.72412022- £1,609,545>, Total restricted re5erve5 were £ll,010,013 12022 - £9,627,275). A detailed breakdown of restricted reserves, along with note5 of the re5triction5 on these funds can be found in note 19 of these accounts. The 8oard holds free reserves - restricted and unrestricted - of £12,861,737 at the end of 2023 12022 - £11,236,820) and £1,178,63812022 - £1,178,638) of Endowment fund5 . OF thi5, £10,847,323 12022 £10,150,878) 15 held in investrnents in order to provide some capital appreciation and a flow of investment income. Of the investments, £1,512.296 12022 £1,381,617> are unrestricted, equivalent to over two years of expenditure. While the Board has no intention of liquidating these investments, it could do so with little difficulty. As such the Bo3rd considers it has adequate reserves to enable it to respond to changing church education needs and fluctuations in the economic environment. The boards policy is to hold a minimum ol twenty four months unrestricted expenditure within it5 unrestricted reserve5, and the boards re5erve5 adequately cover this. Restricted funds in relation to the SCA projects are held in line with the SCA funding received and required expenditure on projects a5 authorised, the restricted funds held adequately cover the future expenditure on the SCA projects. It should be noted that these levels of re5erve5 are partly historic and partly received through Act of Parliarnent,. they are not hoarded donation5. The Finance 2nd Estates Committee of the Board will continue to reviÈw levels of reserves and make their findings known to the Board of Trustees. Flnanclal Revlew, Reserves and Golng Concern The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recomrnended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20151 ICharitie5 SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companie5 Act 2006 and the Charitie5 Act 2011. The Statement of Financi31 Activities shows net income of É711,72312022- £79,058) and investment gains of £913,19412022- £1,379,9901ossl tOEether with a gain on revaluation of fixed assets of £nil12022 £318,2281ossl resulting in net movement in funds of £1,624,91712022 £1,619,160 deficit). The financial statements have been prepared on th& going concern basis. as the trustees consider that the Board has sufficient reserves to continue operations. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Investment Poll¢y and Outcome To determine where the charity Should invest its financial assets, the DBE follows the national Church of England'5 Statetnent of Ethical Investment Policy, which state5 that taking account of environrnental, social and governance IESGI i5sue5 is an intrinsic part of being a good long-term investor, for both ethic31 and financi31 reasons. To achieve this, the charity holds cash together with holdings in the Central B03rd of Fin3nce ICBFI Church of England Investment Fund, the CBF Church of England Global Equity Income Fund, the CBF Church of England Property Fund. and the C8F Deposit Fund. The intention is to provide income together with capital appreciation to afford long term protettion against inflation. The value, of investments has fluctuated over the year but as always, the DBE'S response to short-term investment fluctuations is to focus on the long-term viability of the investment portfolio of which it Is confident. The Board ha5 reviewed it5 inve5tment5 and held discussion5 Wlth CCLA to reassure itself that it5 monies are managed in an ethical and efficient way to ensure the long term viability of the Charity. The CBF guarantee that investments are made in accordance with the ethical standards of the Church of England. The trustees will continue to reEularly consider the performance of the shares to ensure that the return in terms of capital growth and income Is appropriate to the long-term needs of the charity. The Finance and E5tate5 Committee will continue to keep investment policy and the investrnent5 themselves under review and keep the board of directors informed. Risk managernent The trustees have a risk management strategy which comprises.. a regular review of the risks the charity may face., the establishment of systems and procedures to mitigate those risks identified in the plan,. and the itnplementation of procedures designed to minirni5e any potential impact on the charity should those ri5k5 materialise. Trustee indemnity insurance is in place. The Board considers the main risks to be in the following areas.. CDAT as the Diocesan Trust is unable to take all schools that a￿ required to atademise, leaving schools to join other Trusts that may not have a strong relationship with the D8E. Risk to/Los5 of Capital/Decrea5e in value of CCL4 investment5. National or glob31 &ventS C3uses School capital project5 to change in priority, overrun or overspend. Changes in school funding reducing viability of small schools. Rise in &nergy bills 2nd other costs impact on schools budgets leaving less resource to support education and development. Risk that DBE budget will be in deficlt. Libel/Adverse rnedia coverage inc. due to high profile, national Or global events. Mitigation for these risks have been identified and continue to be monitored. The Board, with local authorities, continues to support schools in facilitating discussion around school organis3tion and possible structures to manage school funds. A key element in the management of flnanclal rlsk Ss the work of the both committees consldering the detaSled rlsks and the Board understanding the high risks and the mitigations for thern. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Remuneratlon of Key Management Personnel A5 DBE etnployees are joint employee5 With Chester Diocesan Board of Finance, the Salaries of key rnanagement personnel, a5 per all DBE employee5, 15 Set according to the Chester Diocesan Board of Education pay scale a5 deterrnined by the HR Cornrnittee and the Fin3nce and Scrutiny Committee of the DBF. Any pay increa5e5 deterrnined outside of the DBF committees re proposed by the DBE Board and taken to the DBF committees for approv81. Supplier Payment Policy The Company's current policy concerning the payment of tr3d& creditors is to follow the CBI'S Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London. WCIA IDUI. The company's current policy concerning payment of trade creditors is to.. Settle the term5 of payment with Suppliers when agreeing the terms of each transaction,. and Ensure that Suppliers are made aware of the terms of payment by inclusion of the relevant terms in contract and other legal obligations. 10 CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Plans for the future 'Being deeply Christian znd for the common good,, The Board will support its schools to be communities which are.. Loving in relationships,. Ambitious in aspirations,. Bold in 3Ctions in the following w3yS'. Relatlonshlps The Board will continue to invest time into the relationships it has with various organisatitsns, particularly its schools, and as the acaderny sV5tem develop5, the academy trusts in which it5 schools Slts. This will include the development of a Second diocesan trust which will secure its relationship5 Wlth the schools that will join it and the Board'5 current diocesan trust, CDAT. There will be 8 continued focus on wellbeing for school leaders through the wellbeing programme, governor tr8ining and individual support. In a time when prÈssures on school le3dÈrs are so great, there is a neèd to support them through both practical and pastoral activities and the Board will prioritise this throuEh the year. School leade￿ manaEe the wellbeing of school children/students, staff and comtnunities and so by supporting the wellbeinE ol leaders this should have a positive irnpact on those they 5UPPOrt. Chairs of governors in turn are 8 Source of support for school leaders 3nd do this in a voluntary capacity. Termly Chair of governor networks will continue to be held to provid& information, answer questions and support networking. The Board will continue to support schools 2nd local parishes as they look to recruit Bovernors and the Board plans to enhance its relationships with its academy trusts as DBE appointees/recommendations are recruited to all levels of governance in them. Network5 for senior leaders, clergy, RE leaders and worship 1ead5 will continue to be 5UPPQrted by the Board. These will enable the Board to share information and understand the current needs of those involved in church Schools. A rich programme of CPD will a150 be on offer to 5UPPOrt leaders, staff and governor5 acr05S the Diocese. Support for the most vulnerable within the Diocese will continue to be 3 focus for the work of the Bo3rd through the Disadvantag& group and SEND networks alongside the Board's involvement with external partners, such as Church of England Foundation for Educational Leadership ICEFELI. A particular focus in this and future year5 will be diversity. A network has been established to bring schoo15 together to consider the understanding and definition of diverslty and inclusion in the context of 5choo15 and to also raise the profile and integr3te diver51ty and inclusions acros5 all schools in the Diocese. The Board will continue to work with 3 number of organisations and St￿tegiC partners, including the Department for Education and Ofsted to support its work and the work of others. Various Partne￿hIp working is planned with CEFEL and officers will continue to be Involved in a number of national and local networks. Collaboration with other Diocesan Boards of Education in the northern province will continue through DBE Service5 and through the sharing of good practice and resource5 on governance, RE, SIAMS, and other aspects of the Board's work. The very successful Christian Leadership course will run again through the year. A further piece of collaborative work taking place is around dec3rbonis3tion projects to support the net zero p13n for the Diocese. The B03rd will work with DBE Services to bulk buy energy efficient bulbs and solar panels for its schools as well as supporting other innovations. As the education landscape evolves the Board will support schools in managing the route to academy status. Officers will advise and 5UPPOrt Governing Boards, liaise with acadetnie5 and advise the 8oard on propos315. The Board is also fully cornrnitted to 5UPPOrtin8 the Diocesan MAT, Chester Diocesan Acadernies Trust ICDATI as it grows a5 well a5 the development of a second Diocesan Trust to bring further options for church schools. In order to support re13tionships between schools for children and pupils, the B03rd will ensure its offer of resources and events includes opportunities for children and pupils. CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Outcomes Following the change in the SIAMS inspection process the B03rd will continue to support schools in understanding the process and has the aim that all the schools inspected through the year will be judged as 'LivinE UP to its foundation as a church school,. The Board had identified the need for schools to develop their understanding and language around spiritual development in the previous year and SIAMS outcomes has indicated that thi5 is a continued area of need. Training has taken place throughout the year both at Diocesan and individual school level and this support will continue to be offered throughout the year to ensure that more schools are 3ble to articulate the language of spirituality and provide more opportunities tor spiritU31 development for both children and adults. Working alongside Local Authority and acadetny colleagues, the Board will support schoo15 Wlth the aitn that all schools receive at least a 'Good' judgement in their latest Olsted inspection. The Board will provide guidance and 5UPPOrt to schoo15 that are due an Ofsted inspection,. identify schools that may need additional 5UPPOrt because of data or other 85pects of concern and give additional support to schools th3t have not yet achieved 8 'Good' Ofst&d outcome. It will also support school le3ders as they prep3r& for inspection, focusing on their wellbeing. The Board will continue to SlEnpost schools to appropriate resource and support, working in collaboration with LA and academy colleagues, in order raise outcomes for all children and young people. The expectation would be all diocesan schools have ambitious aspiration5 for all. Impact In order to 8chieve the outcomes expected the B08rd must ensure it has the required imp8Ct. The Family of Schools offer is the main sourc& of financial eng2g&ment with schools, in addition to attendance at training and events. The Board will encourage all schools to join the Family of Schools and attend training and events by providing appropriate resource and support and ensuring a progomme of training and events that supports schools, current priorities. This will be offe￿d in a mixture of chargeable and non-chargeable events and also a hybrid of virtual and in person to encourage uptake. Further work will be undertaken to develop online and recorded resources for schools that can be 3ccessed at 8ny time helping re3ch an even wider audiènce. ThrouEh the year the Board expects there to be a number of recruitment opportunities in leadership positions. It will continue to 5UPPQrt the recruitment of 51rong church school leader5 bv Euiding governing boards throughout the proce55 for both deputy and headteacher appointments. Resourcing In the previous year new centralised financial systems wer& implement&d, resulting in an efficient cloud based financi81 recording and reporting system which has had a positive impact on officer workload and thus productivity. This has been further developed to support efficiencies and the Board will continue to monitor its impact and develop further resources as necessary. Most Voluntary Aided 5choo15 are now aware that the governor5, contribution rnu5t be paid upfront and that the Board cannot fund deferred payment5 but it 15 not fully understood by all and so the Board will continue to ensure the message 15 repeated throughout the year. The Boards work on achieving net zero carbon emissions by 2030 will continue to be 3 focus with 3 working party looking at ways to support schools in resourcinE this decarbonisation work as well as working with D8E services on pilot projetts. The decisions around SCA bids will also be influenced by this work. 12 CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The 8oard in fulfilling its responsibility to offÈr guidance on denomin2tional RE that meÈts thÈ Church of England StatÈmÉnt of Entitlement for RE, has engaged with the process of researching, piloting and launching Questful RE throughout 2023. This is specifically for Voluntary Aided IVA) and previous VA schoo15 who are required to teach denorninational RE. However, extensive work ha5 ensured that this quality resource ha5 been rnade accessible to VA and previous VA Schools with bespoke guidance on how it Meet5 each local SACRE expect3tions. Further training will be put in place for 2024 to ensure schools plan curriculurn that is contextually 8ppropriate using this resource and engag& with effective use of the ass&ssment system. Human resource is one of the main ways the Board hopes to achieve its objectives. As identified earlier, good leadership recruitment is essential followed by induction and support. The 8oard's CPO programme will continue to support staff in schools at each stage of their career to ensure an experienced staff that understand and can support and develop the Christian foundation of their school. The recruitment of foundation governors continues to be a challenge not just for the Board but nationally. The Board will continue to work with local parishes and nation81 bodies to both encourage involvement and recruit to schools and 8cademv trusts. The Board's central teatn of officers, supplemented by a srnall number of consultants, will continue to develop the Board's offer and will respond to national and local circum5tsnces to ensure Diocesan schoo15 are equipped and supported in all situations. Strurtures The Board will continue to provide 3ppropriate support and ch311&nge to its executive officers as they seek to fulfil the terms of the DBE measure and objects of the charity. This will be achieved through the work of its two committees and working parties as well as through the meeting of the full Board. The 8oard will measure itself against the Good Governance Code and regularly reflect on its policy and practice5. The Board will further develop its role in the academy system and give further thought to how it develops its relationships with schools and academy trusts 3S the number of schools converting to ac3demies incre3ses. It will continue to ensure that, where Diocesan schools are included, academy structures will ensure each church school is fully living up to its foundation. Trust In order to achieve its aitn regarding relationship5, OUtcome5, impact, resourcing and structures, the Board rnu5t be trusted by all those linked to it. The Board will ensure it IS transparent, engaging and reflective,. both supportive and challenging to ensure the best outcomes for it5 schools. The Board would hope to have all of its schools engaBed with its work, at least at some level with a13rge number fully engaged across all aspects of its work. 13- CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Strurture and governan¢e Chester Diocesan Board of Education is a registered charity no. 525790, and a company limited by guarantee no. 85176. Governlng Document The Chester Diocesan 8oard of Education is a company limited by Euarantee registered in England and Wales and governed by it5 Memorandutn and Article5 of Association amended on l January 2023. It is registered as a charity with the Charity Cornrni5sion. The Board compri5es'. 111 the Bishop,. 121 at least one but not more than two m&mb&rs appointed by the Bishop I"Bishop appointed Members"I,' 131 at least seven but not more than eight members elected by the Dlocesan Synod who are worshipping members of the Church ol England but need not themselves be members of the Dlocesan Synod I'elected Members"), of whom.. lal at least three membets shall be elected from each of the two archdeaconries of the Dlocese, being people who work, worship or reside in the archdeaconry from which they are appointed, and Ibl at least one mernber shall be a clerk in holy order5 beneficed or licensed in the Diocese,. 141 at least two but not more than four rnembers co-opted by the Board who shall be persons with experience of church schools in the Diocese Ico-opted Members). The trustees, who are also the directo￿ for the purpose of cornpany law, and who served during the year and up to the date of signature of the financial statements were.. Ven Dr M Gilbertson (Chairl Revd L Bannon Professor P 8owden Mrs M Cruxton Dr D Cumberland Mr5 S Hud50n Dr D Walter Dr C Gordon Mr P Gibbons Ico-optedl Rev Dr J Arnott Mr D Hermitt Rev J Bridgeman (Co-opted) Mrs C Speed (Co-opted) Rev C Corley Ico-optedl (Resigned 4 March 20241 (Appointed 31 January 20231 (Appointed 31 January 20231 (Appointed 31 January 20231 IAppoint&d 31 Janu3ry 20231 (Appointed 31 January 20231 (Appointed 31 January 20231 14 CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Appointment of trustees As set out in the Articles of Association, the Chair of the trustees is the Bishop of Chester except that, if they do not desire to be Chair, the metnbers after consultation with the Bishop, shall appoint some other person (whether or not a metnberl to be Chair. The Ven Dr M R Gilbert50n (Archdeacon of Che5terl was appointed a5 Chair. A5 described in the Article5 of A550ciation. the members of the DBE are a150 the Trustees of the DBE. When vac3ncies occur and at the end of the terms of office for Board members,. the roles are advertised across the Diocese and applications invited. This is to support both the fulfilment of equality objectives and to encourage a wide range of backgrounds and experience on the Board. All board mernbers, tru5tee5 and committee members are voluntary roles,. the DBE doe5 not use volunteer5 beyond these roles. The main Board is supported in undertaking more detailed scrutiny through two committe&s, Finance and Estates IF and El and Distinctiveness, Standards and Governance IDSGI. These are made up of members of the Board with additional co-opted ￿ernbe￿. Two working parties have also been established on academisation and Decarbonisation, made up of Board members and additional persons invited to attend because of their experience. Trustee induction and training New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Associ8tion, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees also meet key employees and are encouraged to attend 3ppropriat& external training events wher& these will facilitate the undertaking of their role. Trustees, statement on public benefrt Chester Oioce5an Board of Education 15 a public benefit entity. The trustees confirrn that they have complied with the duty in the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Cornmis5ion in determining the activities undertaken by the charity. In accordance with the company objectives as set out in the Dioces3n B03rd of Education Measure 2021, the B03rd of Education exists.. to promote or assist in the promotion of education in the Diocese that is consistent with the faith and practice of the Church of England., to promote or as51St in the prornotion of religiou5 education and religious worship in schools in the Diocese,. to promot& or a5SlSt in the prornotion of church Schools in the Diocese., and to promote co-operation between itself and other persons concerned with education in the Diocese. The public beneflt of our work 15 seen in the support and flourishing of church schoo15 that provide education for all within a Christian ethos. The Board of Education also 5UPPOrtS Schools in developing links with their local comrnunitie5 to improve and unify these communitie5. Our 5UPPOrt for 5choo15 zlso en5ure5 the provision of building5 which can be used by parishes and outside bodies for the benefit of 811. 15- CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Qualifying third party indemnity pmisions Charity Governance Code The Board follows the Charity Governance Code and continues to review best practice as it aims to continu311y improve. The Board manages effective governance of the charity in the following ways.. OrBani5ational Purp05e The Board ensure5 Its work is in line with it5 charitable objectives and also it5 V15i0n of being deeply Christian and for the common good,. and that its 5choo15 will be cornrnunitie5 which are loving in relationships, ambitlous in aspiration and bold in action. This vision continues to be developed and 15 Used a5 a basi5 for the work of the Board and its officers. The wider diocesan vision is currently being implemented and will impact further development of the Board of Education vision. Leadership- Two committees Eive a strong oversight of the work of the DBE, through detailed scrutiny and recommendations to the Board. Additional working parties help challenge and support executive officer5 a5 they support the developtnent of DBE strategy in areas such a5 academisation and decarbonisation. Integrity- The Bishop of Chester nominates the chair of the DBE to ensure the Board operates within the vision 8nd values of the Diocese of Chester and the Church of England. Th& majority of the Board is appointed by Diocesan Synod to ensure the Board is independent in its decision making. A sm311 number of members are co-opted based on the skills that they offer. Committees also have spaces for co-opted members which help brin£ a further perspective to its work. The 8oard is required to report back to the Diocesan Synod to Sha￿ its progress in furthering its purposes. Decision Making, Risk and Control The risk register is regularly updated to ensure the Board is aware of, and managing its current risks. Each committee identifies risks and possible mitigation. These are then brought to the full B03rd. The Distinctiveness, Standards and Governance 8nd Fin8nce and Estates committees continue to support the B08rd in taking control of, and responsibility for, the decision-m3king process of the charity. Board Effectiveness- Board directors bring a wide and diverse range of skills to The 8oard and continually monitor the work of the DBE and it5 executive officers,. scrutinising operational activities through reporting processes and review of actions. Financial Scrutiny and decision making 15 rnanaged through clear financial policies and procedure5. Diversity - The Board of directors is appointed by the Diocesan Synod 8nd, as far as possible, members are nominated to include a wid& ￿n￿e of knowledge, skills and perspectives. When vacancies occur, or at th& end of the term for the Board. the roles are advertised across the Oiocese in order to encourage this breadth. However, the D8E intends to take a more proactive approach to encouraEe applications for appointment from a more diverse group, in particular with ￿gard$ to age, gender and ethnicity. The DBE 15 comtnitted to widening it5 diver51ty as it move5 forward. Openne55 and Accountability- The charity 15 accountable to and makes regular reports to Diocesan Synod and variou5 Other Diocesan committees to ensure that the Board is transparent in how it operates. Organisation The 8oard of trustees administers the Charity. The Board meets regularly together with the Secretary Ithe Diocesan Director of Edutationl who manages the day to day operations of the charity. The Board Manages its business through its two cornrnittee5, Finance and Estates and Di5tinctivene55, Standards and Governance. These are attended by rnember5 of the executive team. To facilitate effective oper3tions, the Secretary has delegated authority, within term5 of delegation approved by the trustees, for operational rnatters including finance, employment and school rel3ted activities. 16- CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Related parties The charity has a close ￿latIonShIp with Chester Diocesan Board of Finance la company limited by guarantee registered in England Ino. 78261 and a registered charity Ino. 2489681 which provide5 office accomrnodation and payroll. The charity has a close relationship with Chester Diocesan Academies Trust ICDATI la company limited by guarantee registered in England Ino. 84517871 and an exempt charityl which is established as a multi-academy trust in the Diocese. The charity jointly owns DBE Services Ltd la company limited by shares registered in England and Wales Ino. 55311231 with Blackburn Diocesan Board of Education, Carlisle Diocesan Board of Finance, Liverpool Diocesan 8oard of Finance, Manchester Diocesan Board of Education and York Diocesan Board of Finance. This company undertakes support work across the six dioceses and gift-aids any profit back to the six Boards. Funds held as custodian trustee The charity acts as custodian trustee in respect of funds held on behalf of local trustees and such specific purpose funds are held in segregated accounts, separately accounted for, and do not appear in the financial statements. They are shown in note 22 to the accounts. The company also acts as CUStodi8n trustee in respect of funds arising out of the sale of school properties where the funds 3re held pending th& issue of 3n Order or other determination. The Devolved Formula Capital for aided schools is held by the charity as part of these funds. ststement of trustees, responsibilities The trustoos, who aro also the directo￿ of Chester Diocesan Board of Education for tho purpose of company law, are responsible for preparinE the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Aceounting Standards Iunited Kingdom Generally Accepted Accounting Practitel. Company Law require5 the trustees to prepare financial Statements for each financial year which give a true and fair view of the state of affairs of the charity 8nd of th& incoming resources and application of resources, including the income and expenditure. of the ch3ritable company for th3t year. In preparing these financial statements, the trustees are required to.. select suitable accounting ptslicies and then apply them con5iStently,' observe the methods and principles in the Charities SORP,. m3ke judgements and estimates th3t are re3sonable 3nd prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial staternents. and prepare the financial statement5 On the going concern basis unless It Is inappropriate to pre5urne that the charity will continue in operation. The trustees are responsibl& for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Auditor In accordance with the company's articles, a resolution proposine that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at a General Meeting. 17- CHESTER DIOCESAN BOARD OF EDUCATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Disclosure of information to auditor E8ch of the trustees h3s confirmed that there is no information of which they are aw3r& which is relevant to the audit. but of which the auditor is un2ware. They have further confirmed th2t they have taken appropriate steps to identify such rel&v3nt information and to estsblish that the auditor is aware of such information. TlTrv IIusLvvs' Ivyull approved by the Board of Tru5tee5. Ven Dr M Gilbert50n (Chairl Chalr Date.. 1610612024 18- CHESTER DIOCESAN BOARD OF EDUCATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION Opinion We have audited the financial statements of Chester Diocesan Board of Education (the 'charity'l for the year ended 31 December 2023 which tornprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financiil 5tatement5, including significant accounting policie5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including Financial Reporting Standard 102 The Finuncial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practicel. In our opinion, the financial statements.. Bive a true and fair view of the stat& of the ch3ritable company's affairs as at 31 December 2023 3nd of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prep8red in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirement5 of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and 8pplicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the oudit of the finonciol Strjtements section of our report. We are independent of the charity 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 fulfillÈd our other ethical responsibilities in accordance with these ￿QUIreMents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to 80ing concern In auditing the financial staternents. we have concluded that the trustees, use of the going concern basis of accounting in the prep3ration of the financial st3tements is appropriate. Based on tho work we havo performÈd, wo have not identified any matÈrial uncertainties relating to events or conditions that, Individually or collectively, may cast SlEnificant doubt on the charity's ability to continue as a Eoing concern for a period of at least twelve rnonth5 from when the financial statements are authorised for issue. Our respon5ibilitie5 and the responsibilities of the trustee5 With respect to going concern are described in the relevant sections of this report. Other Informatlon The other information comprises the information included in the 3nnu31 report other than the financi31 statements and our auditor's report thereon. The trustees are responsible for the other information Contained within the annual report. Our opinion on the financial staternents does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not expre55 any forrn of assurance conclusion thereon. Our responsibility 15 to read the other information and, in doing so, consider whether the other inforrnation is materially incon5iStent with the financial staternents or our knowledge obtained in the course of the audit, or otherwise appears to be materially mi55tated. If we identify such materi31 inconsistencies or apparent mat&rial misst8tements, we are required to determine wh&ther this gives rise to 8 material misstatement in the financi31 statements th&mselv&s. If. based on the work we hav& performed, we conclude that there is 3 material misstatomont of this other information, WÈ aro 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 our audit.. the information given in the trustees, report for the financial year for which the financial ststements are prepared, which includes the director5, report prepared for the purposes of company law, 15 consistent with the financial 5tztement5,' and the directors. report included within the trustees, report has been prepared in accordance with applicable legal requirement5. 19- CHESTER DIOCESAN BOARD OF EDUCATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION Matters on which we are required to report by exception In the light of the knowledEe and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors. report included within the trustees. report. We have nothing to report in respect of the following matters in relation to which the Companie5 Act 2006 requires US to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received frorn branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the inforrnation and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the Small companies. exemptions in preparing the tru5tee5' report and from the requirement to prepare a Strategic report. Responsibilities of trustees As explained rnore fully in the statement of trustees, responsibilities, the trustees. who are also the directors of the charity for the purpose of company law, are responsible for the prep3r3tion of the fin3ncial statements ancl for being satisfi&d that thev give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, dlscltsslng, as applicable, matter5 related to going concern and u5inB the going concern basis of accounting unle55 the trustees either intend to liquid3te the charitable company orlo cease operation5, or have no realistic alternative but to do 50. Audltor's responslbllltles for the audlt of the flnan¢lal statements Our objectives are to obtain reasonable assurance about whether the financia1 statements as a whole 3re free from materi31 misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable 8ssur3nce is a high lovol of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect 3 material misstatement when it exists. Misstatements can arise from fraud or error and are considered material If, individuallv or In the aggregate, they could reasonably be expected to influence the economic decisions of usets taken on the basis of these financial staternent5. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Extent to which the audit was Considered capable of detecting irregularities, including fraud We identify and a5se55 the ri5k5 of material mi55tatement of the financial statement5, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that IS sufficient and appropriate to provide 8 basis for our opinion. 20- CHESTER DIOCESAN BOARD OF EDUCATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION Identifying and assessing potential risks related to irregularities In identifying and a55e55ing risk5 of material rni5Statement in respect of irregularitie5, including fraud and non-compliance with laws and regulations, we considered the following.. the nature of the industry and sector, control environment and business performance.. the charitable Company's own assessment of the risks that irregularities may occur either as a result of fraud or error,. the results of our enquiries of management and trustees of their own identification and assessment of the risk5 of any matters we identified having obtained and reviewed the charity's documentation of their policies and procedures relating to.. • identifying, evaluating and complyin8 Wlth laws and regulations and whether they were aware of any instances of non-compliance,. detecting and responding to the risks of fraud 8nd whether they have knowl&dge of any actual, suspected or alleged f￿ud,. and the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations., and the matter5 discussed arnong the audit engagement team regarding how and where fraud might occur in the financial Statements and any potential indicator5 of fraud. As a result of th&se procedures. we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for f￿ud in the following areas.. Ill The presentation of the charity's Statement of Financial Activities, lill the charity's accounting polity for revenue recognition liiil the overstatement of Salary and other c05ts and the movetnent5 for the year. In cornrnon with all audit5 under ISA5 IUKI. we are a150 required to perform specific procedure5 to respond to the risk ol management override. We also obtained an understanding of the legal and regulatory framework th3t the charity operat&s in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. Tho kÈy laws and rogu12tions we considered in this context included the UK Companies Act, the Statement of Recommended Practice-'Accounting and ReportinE by Charities.. In addition, we considered provisions of other Izw5 and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the zcaderny's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection. Audlt response to rlsks Idenilfled As a result of perfortning the above. we identified incorne recognition, override of ctsntro15 and adherence to laws and regulation5 a5 the key audit matter5 related to the potential risk of fraud. 21 CHESTER DIOCESAN BOARD OF EDUCATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION Our procedures to respond to risks identified included the following.. reviewing the financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as h8ving 8 direct effect on the financial statements,. enquiring of management and trustees concerning actual and potential litigation and claims,. performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of rnaterial mi55tatement due to fraud,. in addressing the risk of fraud through management override of controls, testing the appropriateness of journ31 entries and other adjustments,. ass&ssing whether the judgements made in making accounting estim8tes are indicative of a potential bias,. and evaluating the business ration31e of any significant transactions that are unusual or outside the normal course of business. We also cornrnunicated relevant identified laws and regulatlOn5 and potential fraud risks to all enBagernent tearn tnernbers and rernained alert to any indications of fraud or non-compliance with law5 and regulation5 throughout the audit. A further description of our responsibilities is available on the Financi21 Reporting Council's website at.. https..l/ www.frc.or£.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report Thi5 report 15 tnade 501ely to the charitable cornpany's rnember5, as a body, in accordance with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work ha5 been undertaken 50 that we might State to the charitable company'5 member5 those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted bv law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable comp8ny's members as a body, for our audit work, for this report, or for the opinions we have formed. I CLL4_,a . Robert Hall (Senior Statutory Auditor) for and on behalf ol Mitthell Charlesworth (Audit) Limited 1710612024 Accountants ststutory Auditor 24 Nicholas Street Chester CHI 2AU 22- CHESTER DIOCESAN BOARD OF EDUCATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Endowment funds funds designated 2023 Restricted funds Total Unrestricted Endowment funds funds designated 20Z2 Restricted funds Total 20Z3 2023 2023 2022 202Z 2022 Notes Income from= Donations and legacies Charitable activitie5 Income from investments 94,190 100,952 143,972 1,924,280 2,018,470 100,952 455,012 33.498 82,035 147,193 1.921,554 1.955,052 82,035 418,296 311.040 271.103 Totsl income 339,114 2.235,320 2,574,434 262.726 2.192,657 2.455,383 endItU￿ on- 227,615 1,635,096 1,862,711 239.332 2,136,993 2,376,325 Net gains/l1055e51 on inve5tment5 li 130,680 782,514 913,194 1183,4141 1318,2281 11.196,5761 11,698.2181 Net movement In funds 242,179 1,382,738 1,624,917 1160,0201 1318,2281 11,140,912) 11,619,160) Fund balances at l January 2023 1,609,545 1,178,638 9,627,275 12,415,458 1,769,565 1,496,866 10,768,187 14,034,618 Fund balances at 31 December 2023 1,851,724 1,178,638 11,010,013 14,040,375 1,609,545 1,178,638 9,627,275 12,415,458 The statement of financial activities includes all gains and losses retOEnised in the year. All income and expenditure derive from continuing 3Ctivities. The staternent of financial activitie5 a150 cornplie5 Wlth the requirernents for an income and expenditure account under the Companie5 Act 2006. 23- CHESTER DIOCESAN BOARD OF EDUCATION BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Tangible assets Investment property Investments 13 4,804 1,178,638 10,847,323 2,935 1,178,638 10.150,878 14 Is 12,030,765 11,332.451 Current assets Debtors Cash at bank and in hand 16 94,208 3,317.406 279,853 2,408,218 3.411,614 2,688,071 Creditors: amounts falling due within one year 17 11.402,0041 11,605,064) Net current asset5 2,009,610 1,083.007 Total assets less current liabilities 14,040,375 12,415,458 Income funds Restricted funds Endowment funds- designated Unrestricted funds 19 11,010.013 1,178,638 1,851,724 9.627,275 1.178,638 1,609,545 14,040,375 12.415,458 The financial statements were approved by the Trustees on 1610612024 Ven Dr M Gilbertson (Chairl Trustee Company reglstratlon number 85176 -24- CHESTER DIOCESAN BOARD OF EDUCATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operating attivities C8sh generated from operations 23 154,930 197,682 Invesilng adlvltles Purchase of tanziblo fixÈd assets Repayment of investment loans 8nd receivables Proceeds from disposal of investrnents Investment income recelved 12,9041 85,401 216.749 455,012 13,4361 141,966 418,296 Net cash generated from investing activities 754,258 SS6,826 Net tash used in financing attivities Net increase in cash and cash equivalents 909,188 7S4,508 Cash and cash equivalents at beginning of year 2,408,218 1,653,710 Cash and cash equivalents at end of year 3,317,406 2.408,218 -25- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Attounting polities Charity information Chester Diocesan Bozrd of Education is a private cornpany lirnited by guarantee incorporated in England and Wales. The registered office is Church House, 5500 Daresbury Park, D8resbury. Warrington. Cheshire. WA4 4GE. 1.1 A¢countln8 conventlon The fin8ncial statements have been prepared in accordance with the charity's Charities Act 2011, the Companies Act 2006, FRS 102 -The Fin8ncial Reporting Standard applicable in the UK" I"FRS 102-1 and the Charities SORP 'Accounting and Reporting by Charities.. Statement of Recommended Practice applic2ble to charities prÈparing their accounts in accordance with the Financial Reporting Standard applicable in the UK IFRS 1021" (effective l January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterlin& which is the functional c￿r￿nC¥ of the charity. Monetary amounts in these financial 5tatetnent5 are rounded to the nearest £. The flnanclal statements have been prepared under the hlstorical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial in5trurnents at fair value. The principal accounting policie5 adopted are Set out below. 1.2 Going concern At the tirne of approving the financial staternents, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thu5 the trustees continue to adopt the going concern basis of accounting in preparing the financial staternents. 1.3 Charitable funds Unrestricted fund5 are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 1.4 Income Income 15 recoBn15ed when the charity is legally entitled to it after any performance conditions have been rnet, the amounts can be rneasured reliably, and it is probable that income will be received. Cash don2tions are recognised on receipt. Other donations are r&cognised once the charity has bèen notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deed5 of covenant is recogni5ed at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution. the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Gift aided distribution from D8E Service5 Ltd - the charity ha5 an investment in DBE Services Ltd which provides Services to church schoo15 including inspections, teaching and curriculum support, administrative services, building work. equipment and construction support. The charity receives gift aided distributions on the profits. The distribution is recognised on receipt. Grants are included in the statement of financial activities on a receivable basis. The balance of income received for Specific purpose5 but not expended during the period 15 shown in the relevant fund5 on the balance sheet. Where incorne 15 received in advance of rneeting any perforrnance-related condition5 there 15 not unconditional entitlement to the incorne and it5 recognition is deferred 8nd included in creditors as deferred incorne until the performance-related conditions 3re met. Where entitlement occurs before income is received, the income is 3ccrued. -26- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continuedl The charity operates a support package under the name 'Chester Diocesan Family of Schools ￿ferred to elsewhere in the annual report and accounts, and receives subscription income a5 a result which 15 recogni5ed on an accrua15 basis In the accounts. Conference income is derived from training events delivered to staff at Church of England Schools and is recognised on an accruals basis. The charity receives dividends and interest on a range of investments, all holdings in Church of England funds operated by CCLA Investment M8nagement Ltd which are recognised on receipt. The charity also receives rentsl income from four former schools which is recoEnised on an accruals basis. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it 15 probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of e8ch 8Ctivity are m8de up of the tot81 of direct costs and shared costs, including support costs involved in undert2king each 3Ctivity. Direct costs attribut3ble to a single activity are 311oc3ted directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central 5tsff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the a55et 5 Use. Charitable activity costs also include the cost of administering grant claims in respect of building and maintenance work carried out on school properties, the cost of administering Erants payable and providine support to the other charitable aitivities of the cornpany. Grants Grants payable included within charitable activities represent discretionary g￿ntS to Governors or Schools for financi31 assistance towards to the cost of specific, approved school projects. Grants P2y3ble are included in the St2tement of Financial Activities on the accruals basis, to the extent that conditions for payment have been met. Allocation of support costs As expl3ined in the annual report, the charity SUPPOrt5 the Church of England schoo15 in the Diocese in a wide range of ways including assisting with building projects, supporting and training governors, 3nd promoting religious education more widely. The 3llocation between actiV3te5 fluctuates as necessary. 1.6 Tangible fixed assets Tangible fixed assets are initi811y m&asured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreci3tion is recognised so 3S to write off the cost or v31uation of assets less their residu31 v31ues over their useful lives on the following bases.. Computers and office equipment 25% Reducing Balance The gain or Ios5 arising on the disposal of an asset is determined a5 the difference between the Sale proceed5 and the carrying value of the asset, and is recognised in the statement of financial activities. -27- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continuedl 1.7 Investment property Investment property, which is property held to earn rentals and/or for capital appreci8tion. is initially recognised at cost, which includes th& purchase cost and any directly attributable expenditure. Subsequ&ntly it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Artivities. Proceeds from the sale of former school properties are normally held by the charity as custodian trustee lin specific purpose funds) until a relevant Educational Endowment Order or determination is issued. The financial 5tatetnent5 UP to 315t December 1996 did not include any value ft>r former school properties held in the name of the charity which had not yet been sold, but these propertie5 are classified a5 investrnent properties. and have been included in subsequent accounts. 1.8 Fixed asset investments Fixed asset investments are initially tneasured at transaction price excluding transaction cost5, and are subsequently measured at fair value at each reporting date. Change5 in fair value are reco8ni5ed in net income/lexpenditurel for the year. Transaction costs are expensed as incurred. 1.9 Impairment of fixed assets At each reporting end date, the charity review5 the carrying arnounts of it5 tangible a55ets to detertnine whether there 15 any indication that those a55et5 have suffered an impairment 1055. If any such indication exist5, the recoverable amount of the asset is estimated in order to determine the extent of the impairment1055 lif anvl. 1.10 Cash and cash equivalents Cash and cash equivalent5 include cash in hand, deposits held at call with banks, other short-term liouid investments with original maturities of three month5 or less, and bank overdrafts. Bank overdrafts are shown within borrowings in 1.11 Financial instruments The charity has eletted to apply the provisions of Section 11 'Basic Financial Instrurnents. and Section 12 '0ther Financial Instrutnent5155ue5' of FRS 102 to all of it5 financial in5trurnents. Financial instruments are recognised in the charity'5 ba18nce sheet when the charity becomes party to the contr3ctU31 provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable rlght to set off the rectsEnlsed amounts and there is an intention tts settle on a net basls or to realise the a55et and settle the liability sitnultsneou51y. Busi¢finon¢itsl assets Basic financial assets. which include debtor5 and cash and bank balance5, are initially measured at transaction price including transaction costs and are subsequently carried at amortised c05t using the effective interest method unless the 8rr3ngement constitutes a fin3ncing transartion, where the transaction is me3sured at the present Value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. -28- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continuedl Buslcllnonclul Ilobllltles Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitute5 3 financing transaction, where the debt in5trurnent 15 measured at the present value ol the future payrnent5 discounted at a market rate of interest. Financial liabilities classified a5 payable within one year are not amortised. Debt instruments 3re subsequently c3rried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for £oods or services that have been acquired in the ordinary course of operntions frorn supplier5. Arllount5 payable are classified a5 current liabilities if payment 15 due within one year or le55. If not, they are presented as non excluding employers n8tional insurance. together with pension contributions of £11,24812022- £10,658). 32- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 li Net 8ainslllossesl on investments Unrestricted funds Restricted fund5 Total Unrestricted Endowment funds fund5 deslgnated 2022 Restricted funds Totsl 2023 2013 2023 2022 Z022 2022 Revaluation of investments Revaluation of investment properties 130,680 782,514 913,194 1183,4141 11,196,5761 11,379,990) 1318,2281 1318.2281 130,680 782,514 913,194 1183,4141 1318,2281 11.196,5761 11,698,218) 33- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 12 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxe5 Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 13 Tanglble fixed assets Computers and offiree4uipment Cost At l January 2023 Additions 3,436 2,904 At 31 December 2023 6,340 Depreciation and impaimient At l January 2023 DÈpreci2tion charged in the year 501 1,035 At 31 December 2023 1.536 Carrylng amount At 31 December 2023 4,804 At 31 December 2022 2,935 14 Investment property 2023 Falr value At l January 2023 and 31 December 2023 1,178,638 The lair value of the investment property has been arrived at on the basis of a valuation carried tsut at 315t December 2023 by Ca55idy & Ashton. an independent. profe55ionally qualified surveyor. The valuation was mzde on an open market value basis by reference to market evidence of transaction price5 for similar properties as at the year end date of 31 December 2023. The properties were provided to the charity at no cost by order of the Secretary of State for Education. The values of the properties at the time of receipt are not known. CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Investment property (Continuedl 2023 2022 Freehold Long leasehold Short leasehold 1,178,638 1,178,638 15 Flxed asset Investments CCLADBE Services Ltd Irwestments Total Cost or waluation At l January 2023 Valuation changes Disposals 10,150,866 913,194 1216.7491 12 10,150,878 913,194 1216,7491 At 31 December 2023 10,847,311 12 10,847,323 Carrying amount At 31 December 2023 10,847,311 12 10,847,323 At 31 December 2022 10.150,866 12 10,150,878 2023 2022 Investments at fairvalue cornprise.. CBF Investment Fund CBF Glob81 Equity Income Fund CBF Property Fund COIF Charities Investment Fund 9,173,573 1,019,585 604,481 49,672 8,378,418 1,092,995 634,036 45,417 10.847,311 10.150,866 -35- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Debtors 2023 2022 Amounts falling due within one year: Trade debtors Other debtors Prepayments 8nd 8ccrued income 57,503 33,944 2,761 103,254 137,735 2,765 94,208 243,754 2023 2022 Amounts falling due after more than one year.. Tr3de debtors 36,099 Total debtors 94,208 279,853 17 Credltors- amounts fallln8 due wlthln one year 2023 2022 Notes Deferred income Trade credito 18 43,662 13,357 147,987 1,098,118 98,880 44,733 18,542 99,587 1,373,962 68,240 Other DOE and school creditor5 Other creditors Accruals 1,402,004 1,605,064 -36- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Deferred intome 2023 2022 Other deferred income 43,662 44,733 Deferred income is included in the financial statements as follows.. 20Z3 202Z Deferred income is included within.. 43,662 44.733 Movements in the year.. Deferred income at l Janu8ry 2023 Released frorn previou5 periods Resources deferred in the year 44,733 144,7331 43,662 32,254 132.2541 44,733 Deferred income at 310ecember 2023 43,662 44,733 -37- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 19 Restrithed funds The income funds of the charity include restricted funds cornprising the following unexpended balances of donations and grants held on trust for Specific purp05e5'. Movement in funds Incoming resources Movement in funds Incoming resources Balan¢e at ljanuary 20Z2 Resour¢es RevaluatiOn5. Balance at expended gain5aDd losses l January 2023 Resources Revaluations, expended zains and10sses Balance at 31 December 2023 SCA funds- allocated SCA funds- un311ocated 506,772 457,273 9.804,142 1,853,315 68,239 271,104 11,853,395) 506,692 525,512 8,595,071 1,427,540 496.740 311,040 11,347,455) 586,777 1,022,252 9,400,984 Investments 1283.5981 11,196,577) 1287,6411 782,514 10,768,187 2,192,658 12,136,993] 11,196,577) 9,627,275 2,235,320 11,635,096) 782,514 11,010,013 SCA funds The charity assists voluntary aided schools with school building projects and the provision of IT equipment. The VASCA IVoluntary-Aided schools Condition Allocationl system was introduced in April 2020 and superseded the LCVAP (Locally Coordinated Voluntary-Aided ProErammel. Until April 2020, the charity acted as the agent of school governors in helpinE to arrange funding through the DfE and Local Authoritie5 and in paying profe55i0nal fee5 and building costs on behalf of School governors. The LCVAP incotne and expenditure was not reflected in the Statement of Financial Activitie5 a5 the charity had no control over the fund5 and the tran5action5 were those of the school governor5 rather than the charity. which acted zs agent. The change in funding from April 2020 gives the charity ultimate control over the application of the VASCA grants to specific schools. Therefore, the VASCA grant funding received is recognised in the SOFA 81ong with the related expenditure. Investment funds Funds arising out of the sale of school properties were received in the past years under v3rious Educational Endowment Orders and were 3m3lgamated into a uniform statutory trust in 1995 following the provisions of the Education Act 1993. These funds are shown separately as trust funds in the financial statements and their use is restricted to the following.. funding for the purchase, or erection of, improvement or enlargement of, relevant school premises in the area, funding rnaintenance costs of any relevant school in the area, funding the c05t5 of the adtnini5tration of the trust and the costs of providing advice, guidance, and resources in connection with any rnatter related to the management of, or education provided at any relevant School in the area. -38- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Analysis of net assets between funds Vnrestrlcted fvnds 2023 Deslgnated funds 2023 Restrlcted fvnds 2023 Totsl Unrestrlcted funds 2022 Desl8nated funds 2022 Restrlcted lunds 2022 Totsl 2023 2022 Fund balances at 31 December 2023 are represented by.. Tangible assets Investment properties Investments 4,804 4.804 1,178,638 10,847,323 2,009.610 2,935 2.935 1,178,638 10,150,878 1,083,007 1,178,638 1,178,638 1,512,309 334,611 9,335,014 1,674,999 1,381,617 224,993 8,769,261 858,014 1,851,724 1,178,638 11,010,013 14,040,375 1,609,545 1,178,638 9.627,275 12,415,458 -39- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 21 Capital commitments Capital commitments relating to VASCA projects at the year end wa5 £1,392,63212022- £436,429>. 22 Related party tran5action5 Chester Diocesan Board of Education acts as the education authority for the Church of England in the Diocese of Chester. Contribution re joint employment contracts and other recharge5 payable to The Chester Diocesan Board of Finance, an organi5ation in which there are a number of trustee5 on both board5 totalled £373,67712022 £368,309). The balance out5t8nding in creditors 3t the year end is £11712022 £nill. The charity owns 16.67% of the ordinary share capitsl of DBE Services Ltd, an entity which commenced trnding on 1st January 2006. The company undertakes support work across six northern dioceses. A distribution of £1,550 12022 £33,498) was received from DBE Services Ltd during the year. The charity doe5 not regard the 5choo15 in the Diocese to be classified as related partie5. Chester Diocesan Academies Trust Some of the trustees of Chester Diocesan Board of Educ3tion are also trust&&s of Chester Diocesan Academies Trust. The trustees do not consider that there is overall control that would require this charity to be consolidated within these financial statements. During the year Chester Diocesan Academies Trust received a income of £5,42712022 £25,000) frorn Chester Diocesan Board of Education. and paid over £2,87512022- £nill for services received. Fund5 Held as Custodian Trustee The ch8rity acts as custodian trustee in respect of funds held on behalf of local trustees and such specific purpose funds are shown sep3rat&ly from the financial statements, and total £78,55512022 £153,526). The charity also 3Cts as custodian trustee in resp&rt of funds arising out of the sal& of school properties where the funds are held pending the issue of an Order or other determination. The funds are held in separate accounts to ensure that sufficient custody and segregation from the charity's own assets. 40- CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Related party transa¢tions (Continuedl Woodchurch Hlgh School The amount Cha￿ed for the Family of Schools Subscription to Woodchurch High School, of which Revd L Bannon was employed, was £1,62012022- £1,370]. Bowdon C of E School The amount charged for the Family of Schools Sut>scription to Bowden C of E School, of which Mrs S Hud50n was rnployed was £550. The 8mount charged in relation to Head Teachers conferenc& incom& was £nil12022 - £1501. And the amount charged in relation to general conference income was £9,71412022 - £1,120). At the year end £nil12022 £5801 remained as due to the Diocese. The Samara Trust The amount charged for the Family of Schools Subscription to The Sarnara Trust wa5 £1,32312022 - £1,125), of which Mrs S Noakes was a Trustee. The 8ishops' Blue Coat C of E High School The amount Charged for the Family of Schools Subscription to The Bishops, 81ue Coat C of E High School was É30012022 £1,100). And course income of £2,07012022 £3301 was also received from the School, of which Mrs S Noakes is a Trustee. Altrincham C of E Primary School The amount charged in relation to general conference income was £8,94412022 £nill to Altrincharn C of E Primary school, of which Mrs C Corley was a Governor. £715 was also paid over12022- £nill for servic&s received. St Chads C of E School The amount charged for the Family of Schools Subscription to St Chads C of E School, of which Mrs C Speed was ernployed, wa5 £560. 23 Cash generated from operations 2023 2022 Surpluslldeficitl for the year 1,624,917 11.619,1591 Adju5tment5 for.. Investmont income rocognisÈd in statement of financial activities Fair v81ue gains and losses on inv&stment properties Fair value gains and105ses on inve5tment5 Depreciation and impairment of tangible fixed a55ets 1455,0121 1418,2961 318,228 1,379,990 501 1913,1941 1,035 Movements in working capital.. Decrea5e/lincrea5el in debtors IDecreasel/increase in creditors IDecreasel/increase in deferred income ICK),244 1201,9891 11,0711 182,5661 606,505 12,479 Cash generated from operations 154,930 197,682 24 Analysis of changes in net funds The charity had no debt during the year. 41 CHESTER DIOCESAN BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 25 Sole Trusteeship of Exempt Charities- School Trusts The below charitie5 are exempt charities of which the Chester Dioce58n Board of Education is sole trustee. In accordance with section 19.13 of the Charities SORP IFRS 1021 the description 8nd class of assets for all of the below are the school building and lands of the Schools. There is no trading through these exempt charities, their sol& purpos& is to hold the lands and buildings in the form of School Trusts.. 8ldston Village Church of England Prlmary School Trust BromborouBh Church of England Pritnary School Trust Chelford Church of England Primary School Trust Christ Church (Birkenheadl Church of England Primary School Trust Delamere Church of England Primary School Trust Frodsham, Five Crosses Church of England Prim3ry School Trust Goo$t￿Y Church of England Primary School Trust Great Budworth Church of EnEland Primary School Trust Guilden Sutton Church of England Primary School Trust Hoole. All Saint5 Church of England Primary School Trust Hoylake Holy Trinity Church of England Primary School Trust Huxley Church of England Prirn8ry School Trust Little Bollington Church of England Primary School Trust St John the Evangelist Church of Eng12nd Primary School Trust Mollington St Oswald's Church of EnBland Primary School Trust Norley Church of England Primary School Trust St 8erteline'5 Church of England Primary School Trust The Priory Parish Church of England Primary School Trust Saighton Church of England Prirnary School Trust St John's (Sandbach Heathl Church of England Primary School Trust Stockport St Thomas, Church of England Primary School Trust Tushingham-with-srindley Church of England Primary School Trust Upton Heath Church of England Primary School Trust Wharton Church of England Primary School Trust Whitegate Church of England Prirnary School Trust Wincle Church of England Primary School Trust Woodcocks Well Church of England Primary School Trust Worleston St Oswald's Church of England Primary School Trust 42-