**Registered Number: 00463908**
## **DERBY DIOCESAN BOARD OF EDUCATION**
**(Incorporated as a company limited by guarantee)**
**REPORTS AND FINANCIAL STATEMENTS**
**YEAR ENDED**
**31 DECEMBER 2020**
**DERBY DIOCESAN BOARD OF EDUCATION**
## **CONTENTS**
||Page|
|---|---|
|Company particulars|1|
|Chair’s report|2 – 3|
|Report of the trustees|4 – 14|
|Independent auditor’s report|15 - 17|
|Statement of financial activities|18|
|Summary income & expenditure account|19|
|Statement of financial position|20|
|Statement of cash flows|21|
|Notes relating to the financial statements|22 – 35|
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **COMPANY PARTICULARS**
President & Chairman The Rt. Reverend Bishop Elizabeth Lane Bishop’s Nominee and The Venerable C. Coslett Chair of the Board Trustees Mrs. J. Burrows (resigned 19.11.20) (Synod Appointments) Canon J. Cooper Mrs. C. Fearria The Reverend N. Fenton Mr D. Martin The Reverend S. White Mrs. F. Swain (appointed 04.02.20) Canon C. Holmes-Elener (appointed 04.02.20) The Reverend D. Mundy (appointed 08.02.21) The Reverend P. Selby (appointed 08.02.21) Co-opted Mr. A. Chambers (resigned 30.06.20) Ms. S. Barley-McMullen The Reverend N. Roberts Mr. J. Clapham (appointed 08.02.21) Mrs. C. Bailey (appointed 08.02.21) Observer Mrs M. Thomas-Goddard The Reverend Canon M. Macnaughton Secretary and Dr Alison Brown (Acting DDE until 01.01.21) Director of Education Canon L. Wainscot (appointed 01.01.21) Registered Office Derby Church House Full Street Derby, DE1 3DR Independent Auditor BHP LLP 57-59 Saltergate Derbyshire Chesterfield S40 1UL Bankers National Westminster Bank Plc 58 St Peters Street Derby, DE1 1XL Solicitors J.H. Powell & Co. Cathedral Chambers Amen Alley Derby, DE1 3GT Company Registered Number 00463908 Charity Number 527038
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **CHAIR’S REPORT**
## **Chair’s report for year ending December 2020**
It has been my great honour and privilege to have chaired the Board of Trustees during 2020 and this report is published amidst significant periods of change both internally and externally.
Firstly, my thanks go to all of the team who have tirelessly supported schools, churches and households and worked professionally to continue to embrace the Church of England vision for Education which is deeply Christian with Jesus’ promise of “Life in all its fullness” at its heart. The board continues to act as an advocate for children and young people supporting headteachers, governors, clergy and parishes in order that they may proclaim the gospel through their actions, words and the community life they build.
Internal challenges that affected capacity across our team at the start of 2020, included our substantive Director of Education (DDE) remaining on long term sick leave, with processes being followed with HR and occupational health. The delegation of roles from October 2019 continued with Alison Brown as Acting DDE supported by Mark Mallender, CEO of Derby Diocesan Academy Trust (DDAT). Also in January, Alastair Langton retired from his post as Youth Adviser having given devoted service of over 20 years with Derby Diocese. At the beginning of the autumn term David Channon resigned from his post as DDE and Alison Brown, after much discernment, accepted a new post with Christian Aid. After 17 years of service as Deputy Director and Schools’ Adviser we said farewell. Our deepest thanks are expressed for the invaluable contributions that all who have left, have made.
In the light of the above resignations a working party was established to set in motion the appointment process for the new DDE. A group of trustees met on several occasions to discern the job role and person specification whilst also considering a range of documents from dioceses nationally. The process also coincided with a review of the Derby Diocesan Board of Education (DBE) commissioned by the Bishop. During October/November Carolyn Lewis DDE for Leicester and Rowan Ferguson from the CofE Education Office led the review which focussed on the way the DBE worked and its relationship with the Derby Diocesan Board of Finance (DBF). Although the outcomes of this helped to define the job description and person specification it has not as yet been formally shared with the DBE.
There is no doubt that whilst our priority as a Board going forward is to appoint new leadership we are also mindful of the need to increase capacity so that the emerging Diocesan vision is implemented successfully. Meanwhile, we are delighted that Linda Wainscot, former DDE of Coventry has agreed to take on the Interim DDE from January 2021 on a part time basis and Alison Brown is supporting as a consultant for 1-2 days a week with schools Christian Distinctiveness related work.
In addition to the internal complexities highlighted above, we have experienced great upheaval nationally as education has sought to respond effectively to the significant impact of the coronavirus pandemic on our schools, churches, their children and young people, staff and the work of the DBE. By 20 March 2020 all schools in the UK had closed to all children except those of key workers and children considered vulnerable. Inspections and examinations were cancelled and education officers together with many school staff transitioned to home-working and therefore this resulted in a rapidly changing landscape as we sought to find new and innovative ways of providing love and support.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **CHAIR’S REPORT**
Nevertheless, despite all of these challenges, throughout 2020 the DBE’s responsibility for advancing the work of Christian education and training in the parishes of the Diocese has continued, enabling and supporting the work of the 111 Church of England schools, one joint Church of England/Methodist and one joint Church of England/Roman Catholic School within the Diocese. Working in partnership with the DDAT the Board has developed and nurtured leaders and staff within schools to seek to offer life in all its fullness, through learning, growing, building connections and being healthy. This has been accomplished in line with the Diocesan Boards of Education Measure.
Finally, my thanks are extended to the invaluable and unstinting work of the Board of Trustees, Alison Brown (Acting DDE), Shakher Khaliq (Deputy Director of Business), Netta Russell (Senior Administrator), Sarah Brown (Children’s advisor) and Mark Mallender (CEO DDAT). Despite the challenging time as chair I have immensely enjoyed the role, working alongside the trustees and officers and seeing the Board grow in confidence and expertise. One of my main delights is when we truly build relationships and see children, young people and adults flourish and throughout the pandemic of 2020 that, I feel has still been evident.
## Carol Coslett
Carol Coslett (Jun 29, 2021 09:29 GMT+1)
The Venerable Carol Coslett Chair 22[nd] June 2021
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
The Trustees present their report and the audited financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 and Republic of Ireland published in October 2019.
## **OBJECTIVES AND ACTIVITIES**
At the beginning of the year the board agreed the setting up of 2 sub committees namely the School Effectiveness committee and the Finance committee; each with their own Terms of Reference, and also an additional working party to take forward the outcomes of the Vision day held at the end of 2019. These met in person at the beginning of the year and then online via Zoom since the lockdown. The aim of these groups was to facilitate more in depth working of key areas of the statutory functions determined by the Diocesan Boards of Education Measure 1991. They are as follows:
1. to promote or assist in the promotion of education in the diocese, being education which is consistent with the faith and practice of the Church of England;
2. to promote or assist in the promotion of religious education and religious worship in schools in the diocese;
3. to promote or assist in the promotion of church schools in the diocese and to advise the governors of such schools and trustees of church educational endowments and any other body or person concerned on any matter affecting church schools in the diocese;
4. to promote cooperation between the DBE and bodies or persons concerned in any respect with education in the diocese;
5. the functions assigned to the Board by the measure; and
6. such other functions not contrary to the measure as are assigned to the Board by the diocesan synod, other than functions relating to church schools or church educational endowments.
The DBE’s principal activity is the provision of a wide range of services aimed at serving and equipping Church of England schools and academies and community schools in formal partnerships. The DBE appoints officers to lead on the above work. Additional services are mostly provided under a Diocesan Service Agreement which was drawn up between DDAT and DBE in 2020.
The principal beneficiaries of these services are approximately 15,000 children and young people attending the 110 Church of England primary schools and 1 Church of England secondary free school within the diocese across 2 Local Authorities. These are the City of Derby and Derbyshire. Of the primary schools, 20 are Voluntary Aided (VA), 65 are Voluntary Controlled (VC) and 26 are academies. Of the 26 academies, 13 of the former VA schools, 10 of the former VC schools and the 1 secondary Derby Cathedral School are in DDAT (currently the only diocesan majority MAT). By December 2020 40% of the VA schools and 13% of the VC schools had joined the Trust. There are 4 community schools in the Trust and one Free School (Derby Cathedral School). In addition, 1 school is part of the Embark MAT and 1 school is part of the John Taylor MAT.
Wider than this, the DBE also aims to promote and assist in the promotion of education consistent with the faith and practice of the Church of England across the diocese as a whole.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **Schools Effectiveness committee**
Outcomes of the work have included agreement over the presentation of data to monitor the educational performance of schools & academies, provision for RE, collective worship & Christian distinctiveness. The following outcomes have been noted:
- In response to the ongoing demands being placed on Head Teachers, the Acting DDE organised fortnightly Zoom meetings which have been focussed on supporting the pastoral and spiritual needs to scholastic’s leaders and have facilitated peer to peer support.
- The Board of Education continued its working partnership with the Church of England Foundation for Educational Leadership (CEFEL). There has been a third cohort of school leaders engaging with the Peer Support Network working with other schools across the Diocese exploring various ways that their Christian vision impacts on different aspects of school life. This started with a live launch with Emily Norman from CEFEL leading a day’s input for the 25 participants in February. Since then, virtual meetings have been held with good engagement from the participants. 7 aspiring head teachers have participated in the Church of England Professional Qualification of Headship (CEPQH). This enables them to think about what it means to lead a church school, drawing particularly on the _Church of England Vision for Education – Deeply Christian, Serving the Common Good_ .
- The acting DDE adapted the normal provision for the professional development for RE subject leaders and Collective Worship coordinators through regular online training. These sessions have been well attended and may be considered as an effective way of providing support following the pandemic.
- DBE schools have had the opportunity to attend a programme of 120 training events organised by DDAT, who have also provided a programme of formal support for St James Junior VA school.
- The acting DBE has continued to be involved in Head Teacher recruitment and organised induction training in the Autumn term for those new to headship of a Church school.
- Governor support has continued with the Acting DDE leading three workshops at the on line Governor conference in September, as well as remote Church school governor induction training. The focus included school effectiveness, distinctiveness and inclusiveness. Finding keen and suitably skilled folks to be foundation governors remains an ongoing challenge. There are a number of our schools’ governing bodies who have long standing vacancies of these posts, and therefore a priority is to consider new ways to resource this very important role and ministry.
- The Bishop’s Badge has been awarded for the third year and projects were based on this year’s shared Christian value of Dignity. Rev’d Nicky Fenton organised the presentation of awards in the pupils’ school with Bishop Libby attending virtually.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **The Statutory Inspection of Anglican and Methodist Schools (SIAMS)**
We were 2 years into a new schedule, but all SIAMS inspections were suspended due to the pandemic. To date of the 22 schools inspected under this new schedule 15 have been judged to be ‘good’ and 7 to be ‘excellent’ Church Schools.
Following a national Church of England led consultation all Dioceses are now part of an integrated national system for managing future inspections to ensure greater consistency in experience and processes. As a DBE we will be responsible for:
- Advice on developing Christian character and ethos
- Training for schools
- School reviews and support for schools
As a consequence, roles and responsibilities will be realigned across the Diocesan team as the new DDE and deputy are appointed.
The national team will be responsible for all other aspects of the Inspection process.
## **The Finance and Remuneration Committee**
The Church Schools Finance and Remuneration Committee has been established to enable the delivery of the Diocesan Board of Education’s vision and strategy through its oversight and management of the DBE’s resources and church school buildings.
The Committee acts on behalf of the Board of Education in respect of the function outlined in the Diocesan Boards of Education Measure 1991 (section 2)
(c): _to promote or assist in the promotion of church schools in the Diocese and to advise the Governors of such schools, and trustees of church educational endowments and any other body or person concerned on any matter affecting church schools in the Diocese._
## **A summary of outcomes can be seen in the financial sections of the Annual Report**
## **The Vision Working Party**
Trustees were involved in a Visioning day led by Andy Wolfe Deputy Chief Education Officer at the Church of England in the Autumn of 2019 and this resulted in a working party meeting during 2020 under the direction of Alison Brown, Acting DDE. Drafts of the emerging vision were shared back with the board with members working in small groups to answer key questions. This has resulted in the following DBE Vision and Mission:
_To seek to offer life in all its fullness through learning, growing, building connections and being healthy._
Our Mission:
To lead the development of:
- confident and effective Church schools and academies that are deeply Christian, belonging at the heart of the church and community, serving the common good.
- relevant, supportive and caring involvement of our churches in the life of community schools.
- church communities that serve children and young people and their families.
The five-year strategic plan has been shared with the DBE but we recognise this is an emerging plan that newly appointed officers will reflect upon in the light of local and national priorities.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **DBE Key Partnerships**
## **a) Overseas Links**
The partnership with schools in Kolkata goes from strength to strength. With 25 teachers, heads, teaching assistants and two school governors visiting in January 2020 to work in their link schools and provide training for their teachers. Once again, this group were also accompanied by a group of Health and Social Care Students and their lecturer from Derby University. The link also brings a rich and much needed global education perspective to our schools which enables our pupils and wider school communities to learn about and experience our interconnectedness.
## **b) Church of England Foundation for Education and Learning**
The acting DDE contributed to a national response to the pandemic by contributing to the document “Never the Same”. This resource forms part of a wider suite of ‘Faith at Home’ resources, including parallel approaches for Church Leaders and Households. It is designed to help School Leaders approach the bereavements we will face using the Church of England’s Vision for Education as a framework.
https://www.churchofengland.org/our-faith/faith-home/i-am-school-leader/never-sameresources-school-leaders
## **c) Local Authority and other Dioceses**
Small school sustainability continues to be a challenge. The DBE, in partnership with the Local Authority, continue to advise our schools around different models to achieve a more sustainable and viable future.
In recent years, all of the Catholic schools within the Catholic diocese have been taken into the Catholic Multi Academy Trust. More of our CE VA schools have joined DDAT. This means that the School Condition Allocation (SCA) funding ‘pot’ that these schools generated (and from which the DBE would prioritise building projects across the Catholic and CE VA schools) has significantly decreased. There are few VA schools left in Derby City that are not in a multi academy trust and on their own they will not generate enough funding for significant building works. The number of VA schools in Derbyshire that have _**not**_ converted to academy status is also reducing, therefore the ‘pot’ from which they would access funding for building works is also decreasing. This has led the Derby DBE to join with Leicester, Southwell & Nottingham and Coventry Diocese to form a group with a number of schools large enough to carry on receiving funding. In 2020/21, Derby Diocese received £469,605 in funding towards schools building projects. This funding replaces the Locally Co-ordinated Voluntary-Aided Programme (LCVAP).
In 2020, 11 of our 18 Aided schools had building work carried out and a total of £531,680 Department for Education (DfE) grant was spent on our school buildings during the year. The number of schools and size of grant is likely to reduce over time as VA schools gain academy status and receive income for buildings via a different route.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **d) The Peak Centre in Edale**
In the absence of a youth officer, connections have continued with this Diocesan Christian Activity Centre, which offers schools and youth groups facilities to partake in wider curriculum, life enhancing opportunities.
Having celebrated its 50 year birthday in 2019, 2020 was set to be a year full of bookings and refurbishment. Due to the pandemic most of the bookings and activities were postponed, and staff furloughed. However, progress has been made on structural works to bathrooms and bookings for 2021 are beginning to be made. Links to the church and the village have remained strong and the warden Ben Acty has continued to develop ideas for future engagement.
## **Children’s and young people's work**
Sarah Brown, part time Children’s Adviser, continued to work from home during the pandemic and kept in touch with clergy and youth and children’s groups via mailings and online calls.
The Church of England “Faith at Home” resources provided additional ideas and resources. The focus was largely on Collective Worship/Assemblies, linked to attributes such as kindness, generosity etc. Resources were based on the lectionary with ideas and occasional video clips, available on the Diocesan website for churches to access. Feedback has been positive with some churches distributing resources to families, and others using ideas for an All Age section of their online worship. However, overall training and development events online had a mixed take up. Subjects including, “Seriously Messy” (bereavement in Messy congregations) and “Unexpected Child in the Church Area” were two organised for church leaders. Work alongside Archdeacon Carol will continue to build upon the Growing Faith presentation by Mary Hawes, National Children’s Adviser from the Church of England, at the February Diocesan synod.
In other areas, informal meetings with the Disability Inclusion Group have commenced planning for improving Church accessibility for those with a disability.
There is ongoing dialogue with organisations and charities such as Scripture Union, Renew Wellbeing, Operation Noah and Prayer Spaces to share resources with churches and children’s leaders across the Diocese.
Intergenerational Proposal **-** a working group was set up to consider this initiative of children and young people’s spiritual growth reporting to Bishop Libby.
Although developments with respect to the Youth Council have been delayed due to staffing and the pandemic, the ambition to have schools and pupils involved in new clergy appointments has been implemented via Zoom, thereby beginning to strengthen the link between schools and churches.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **Curate Placements**
For the first time in this diocese, it was planned that stipendiary curates would have to complete a placement in one of our Church schools as part of their IME. Sadly, this was put on hold due to Covid. It is intended that by spending time in a school and with children and staff it will lead to a deep theological reflection and ministerial formation.
## **Other**
Other areas of development across the DBE have included the publication of a number of both new and revised policies where our Christian vision is now explicit. The Diocesan website now incorporates a specific section for education although this is still work in progress.
We also recognise our role in becoming carbon neutral and anticipate that as our staffing capacity increases, we will be in a position to apply for bids which we missed out on, in the first round of funding offered for such projects.
Finally, we recognise that in 2021 legislation will require the revision of the framework for the work of the board and we look forward to the appointment of the DDE who with the Chair of the Board will lead us through this process.
## **RISK MANAGEMENT**
The trustees have considered the major strategic and operational risks, which the charitable company faces and are satisfied that the necessary steps have already been taken to lessen these risks.
The risk register identifies three areas where the risk of either failure to act or the impact of the events is considered ‘high’. These areas and associated mitigation strategies are:
Finance – under-utilisation of diocesan assets and loss of potential revenue.
- Frequent reviews by Finance and Business Committee
- Board of Education owned property professionally managed by external consultant
Small school viability – risk of school closure and disproportionate impact on rural community.
- Need to support collaborative approaches
- Need to have a viable Multi Academy Trust offer
- Need to facilitate models of collaboration between community and church schools
Children & young people numbers in Church continue to decline
- External review of the diocesan offer for children and young people
- Consider alternative forms of “Church” and discipleship for children and young people
- • Ensure that this priority is appropriately resourced within the Diocese
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **FINANCIAL REVIEW**
The Board invests the majority of its funds through CCLA Investment Management who are accountable for investment performance. A substantial element of the Board’s funds need to be kept liquid because of its role in ‘bridging’ building projects in schools between payment of invoices to contractors and the receipt of grants from DfE. In October 2009 the Board took possession of a former school house at Wessington upon the termination of a 99 year lease to the County Council, for which an annual rent of 50p had been payable. The house was sold at public auction in 2010 and the net proceeds £184,392 formed a new Restricted Fund which is being used to help subsidise school building projects where the governing body is experiencing difficulty in raising its 10% share.
The Board assists Voluntary Aided schools with the administration of funding for school building projects and provision of IT equipment. The Board acts as agent on behalf of school governing bodies in receiving funds from the Department for Education, local authorities and other funding sources and settling contractors' costs and professional fees. The DfE Grant and associated expenditure are not costs of the charity and therefore are not reflected in the statement of financial activities. The statement of financial activities for the year and the statement of financial position of the charitable company at the year-end are shown on pages 18 and 20 respectively. Unrestricted funds show net outgoing resources before transfers of £14,371 (2019: net incoming resources of £261,142). Restricted funds show net outgoing resources of £28,595 (2019: net incoming resources before transfers of £223,807). Endowment funds show net incoming resources of £69,189 (2019: 132,485).
As set out in Notes 16 and 17 the Board holds and administers a large number of restricted and endowment funds. As at 31 December 2020 restricted funds totalled £816,232 (2019 - £830,263) and endowment funds totalled £1,088,166 (2019 - £1,018,977). Neither are available for the general purposes of the Board. Unrestricted general funds totalled £1,051,964 (2019: £1,080,899).
The Charitable Company’s wholly-owned trading subsidiary, Derby Diocesan Education Services Limited, remains dormant and has not traded during the year ended 31 December 2020.
## **Investment policy**
Under the Memorandum and Articles of Association, the Board has the power to make any investment that the trustees see fit. The Board has an agreed ethical stance on investments and will not make investments in companies that deal in or produce armaments. Most of the investments are held with CCLA Investment Management Ltd. The value of financial investments has increased in the year with net gains of £91,218 (2019: £254,179). Investment properties had an unrealised loss of £40,000 (2019: unrealised gain of £170,000 due to Ashford Former School and land at Starkholmes being added to the DBE portfolio).
## **Reserves policy**
The Board strives to ensure that it maintains sufficient reserves to enable it to continue to achieve the objectives of the charitable company for the foreseeable future. This involves, as of necessity, ensuring that adequate reserves are maintained to provide a level of income that will support future activity. This income is supplemented by capital arising from the sale of buildings which may become surplus to requirements. This flexibility permits the charitable company’s capital to be depleted in years of high expenditure on building projects. The work of the Board is funded jointly by the Derby Diocesan Board of Finance, who pay the majority of the officers’ salary costs and make a grant towards operating costs, and income on the Board’s financial investments. The Board also derives a small income from letting a number of properties. Additional income may be derived from the sale of redundant school buildings.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **Free reserves**
The trustees’ reserves policy is to ensure the provision of adequate financial resources in an environment of constant change and increasing challenge, without having to make sudden increases in charges for services. The policy is therefore for General Fund reserves, not held in fixed assets, to be within a wide range of between three and twelve months’ worth of the year’s total resources expended. This target level of reserves and policy will be reviewed annually at the same time that the annual budget is considered. At 31 December 2020, the balance of unrestricted fund free reserves was £321,922 (2019: £360,341), amounting to 7.6 months (2019: 6.6 month) of total resources expended in the year, which was therefore within the policy range. Investments are not included in the free reserves figure as the Board are required to hold these in order to generate operational income.
## **Reserves tied up in fixed assets**
Unrestricted funds comprise net assets amounting to £1,051,964 (2019: £1,080,899) of which £96,852 (2019: £98,186) is held as tangible fixed assets. Some of these reserves are designated for projects that will be carried out in the future in line with the vision of the DBE. This would include an asset management plan with regards to the property of the DBE. In order to maximise return on investment, a periodic review will be taken as part of a property maintenance program. It is envisaged that, over a period of time, this will highlight redundant properties that could potentially be sold to realise cash or in other cases improvements to tenanted buildings in order to maximise rental income. Funds have also been ringfenced for the ‘Five Year Strategic plan’ which will be implemented in the coming years.
## **PLANS FOR FUTURE PERIODS**
A £70,000 grant from the DBF continues to allow support to the DBE from the expertise in DDAT. In 2020, this provided DBE with HR support at Board level as well as HR support for the DBE schools. The funding allowed DDAT to work with a DBE school in special measures months before compulsory academisation. Further support for schools was exhibited through the 120 training events put on by DDAT which were open to all DBE schools. To date, DDAT have added 3 new church schools (including the first secondary) to the diocesan family with the help of continued funding.
The DBE remains accredited and recognised as a strong sponsor by the Department for Education. In 2019 a 3-year bid was successfully put forward to the DDBF. This was subsequently postponed to 2021 due to the impact of Covid and the DBE being without a permanent Director. It has since been withdrawn with a view to looking at the future plans of the DBE once a permanent Director is appointed.
A Service Level Agreement has been drawn up and agreed between the Derby Diocesan Academy Trust / Derby Diocesan Academy Trust 2 and Derby Diocesan Board of Education so that staff are fully held to account when working across the different legal entities. The continued benefit of this approach is that there is one vision for education within the diocese practically expressed through all legal entities representing education within the diocese.
Small school sustainability continues to be a priority for the Board of Education. With the withdrawal of the Education Services Grant (ESG) the ability of the Local Authorities (LA) to support schools has been drastically reduced. The National Funding Formula (NFF) is currently introduced in a soft “manner” as a result of LA involvement which is time limited. Soon the full effect of the NFF will be felt in all schools. Financial modelling suggests that small schools will be particularly vulnerable to this.
The diocese has many small schools so facilitation of effective collaboration through federation or academisation is a key ongoing and future activity for the board if schools are to maximise economies of scale and remain viable.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Derby Diocesan Board of Education is a charitable company limited by guarantee. The liability of the members is limited to £1.
As set out in the Articles of Association, the Chairman of the Board is either the Bishop of Derby or someone appointed by the Board in consultation with the Bishop. Members normally serve for three years. The trustees are appointed as follows:
- (1) The Bishop who is the President of the Board
- (2) Two persons nominated by the Bishop
- (3) Not less than seven or more than nine persons appointed by the Diocesan Synod
- (4) Not less than one person or more than four persons co-opted by the Board.
## **Directors and Trustees**
The directors of the Board, are also the trustees of the charitable company during the year, and at the date of this report, are set out on page 1. The Board appoints a Director of Education to whom its officers are accountable.
## **Trustee recruitment, selection & induction**
The trustees of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the Board. New members are offered an induction meeting with the Director (detailed below) and subsequently, training can be provided by Officers of the Board. Decisions are made democratically at Board Meetings, of which at least three are held each year.
Some staff hold the title of ‘Director’, but this relates to their function within the organisation and has no legal meaning within the terminology associated with the Companies Act. All Trustees are required to maintain their entry in the record of declarations of interest and loyalty.
The Board has indemnity insurance for its trustees and key management personnel and £1,000,000 (2019 - £100,000) of cover is provided.
## **Remuneration of key management personnel**
Emoluments of higher-paid employees are determined by the Finance and Business Committee as and when required.
The terms of reference for this group is established by the Board and include:
- regular appraisals,
- remuneration and salary benchmarking and
- recommendation of changes where necessary
## **Delegation of day to day delivery**
The Trustees and the sub-committees which assist them in the fulfilment of their responsibilities, rely upon the Director of Education and colleagues for the delivery of the day to day activities of the company. The Director of Education is given specific and general delegated authority to deliver the business of the Board in accordance with the policies framed by the Trustees.
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## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **RELATED PARTIES**
## **Derby Diocesan Board of Finance Ltd**
The primary object of the DBF is to act as the financial executive of the Diocesan Synod. Whilst the Board is separately incorporated, the DBF provides significant resources to the Board to facilitate the shared vision for mission and ministry with children and young people.
## **Derby Diocesan Academy Trust Ltd**
The primary object of the DDAT is to provide resources to the Board to facilitate the shared vision for mission and ministry with children and young people.
## **TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of Derby Diocesan Board of Education for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
13
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **REPORT OF THE TRUSTEES**
## **DISCLOSURE OF INFORMATION TO THE AUDITOR**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Signed on behalf of the Board of Trustees**
## L. Wainscot
- L. Wainscot (Jun 29, 2021 08:53 GMT+1)
## **Linda Wainscot**
Acting Director of Derby Diocese Board of Education
Approved and authorised for issue by the Board on 22[nd] June 2021
14
## **Independent Auditor’s Report to the Members of Derby Diocesan Board of Education**
## **Opinion**
We have audited the financial statements of Derby Diocesan Board of Education (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, statement of financial position, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
1. give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
2. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
3. have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the report of the trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
1. the information given in the report of trustees (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
2. the directors’ report has been prepared in accordance with applicable legal requirements.
15
## **Independent Auditor’s Report to the Members of Derby Diocesan Board of Education**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
1. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
2. the financial statements are not in agreement with the accounting records and returns; or
3. certain disclosures of directors’ remuneration specified by law are not made; or
4. we have not received all the information and explanations we require for our audit **;** or
5. the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
1. We gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk.
2. We focused on laws and regulations relevant to the charitable company which could give rise to a material misstatement in the financial statements. Our testing included discussions with management, trustees, and those staff with direct responsibility for the compliance of laws and regulations. We also reviewed legal expenses.
3. We addressed the risk of management override of internal controls, including the testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
16
## **Independent Auditor’s Report to the Members of Derby Diocesan Board of Education**
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Jane Marshall (Jun 29, 2021 20:48 GMT+1)
Jane Marshall (Senior Statutory Auditor)
For and on behalf of BHP LLP 57-59 Saltergate Chesterfield Derbyshire S40 1UL
Date: Jun 29, 2021
17
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
For the year ended 31 December 2020
|**Notes**
**Income and endowments from**
Donations
2
Charitable activities
3
Investments
4
**Total income and endowments**
**Expenditure on**
Raising funds
5
Charitable activities
6
**Total expenditure**
**Net (expenditure) / income before**
**investment gains**
Net gains /(losses) on investments
12
**Net (expenditure) / income**
Gross transfers between funds
**Net movement in funds**
**Reconciliation of funds**
**Total funds at 1 January 2020**
**Total funds at 31 December 2020**|**Restricted**
**Endowment**
**2019**
**Funds**
**Funds**
**Total**
**Funds**
**£**
**£**
**£**
**-**
**-**
170,000
**347,430**
**-**
700,366
**35,632**
**-**
106,856
**2020**
**Unrestricted**
**Total**
**-**
**110,778**
**371,853**
**Funds**
**£**
**Funds**
**75,146**
**24,423**
**-**
**£**|
|---|---|
||**383,062**
**-**
977,222
**482,631**
**99,569**|
||**10,525**
**-**
30,926
**372,342**
**-**
583,041
**21,547**
**486,079**
**11,022**
**113,737**|
||**382,867**
**-**
613,967
**124,759**
**507,626**|
||**195**
**-**
363,255
**(28,790)**
**69,189**
254,179
**(24,995)**
**(25,190)**
**10,819**
**51,218**|
||**(28,595)**
**69,189**
617,434
**14,564**
**-**
**-**
**(14,564)**
**26,223**
**(14,371)**
**-**|
||**(14,031)**
**69,189**
617,434
**830,263**
**1,018,977**
2,312,705
**26,223**
**2,930,139**
**1,080,899**
**(28,935)**|
||**816,232**
**1,088,166**
2,930,139
**2,956,362**
**1,051,964**|
All activities derive from continuing activities.
The notes on pages 22 to 35 form part of these financial statements.
18
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **INCOME AND EXPENDITURE ACCOUNT**
|Total income (less endowment)
Resources expended (less endowment)
Operating (deficit) for the year
Net gains (losses) on investments
Total comprehensive (expenditure) / income
For the year ended 31 December 2020|**2020**
**£**
**482,631**
**(507,626)**
**(24,995)**
**(17,971)**
**(42,966)**|**2019**
**£**
977,222
(613,967)|
|---|---|---|
|||363,255
291,694|
|||654,949|
The income and expenditure account is derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with company law. All income and expenditure is derived from continuing activities.
The notes on pages 22 to 35 form part of these financial statements.
19
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **STATEMENT OF FINANCIAL POSITION**
|**Notes**
**£**
**£**
**Fixed assets**
Tangible fixed assets
11
**96,852**
98,186
Investments
12
**2,368,002**
2,302,220
**2,464,854**
2,400,406
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Creditors:**amounts falling due
within one year
15
**Net current assets**
**491,508**
529,733
**Net assets**
**2,956,362**
2,930,139
**The Funds of the Charity:**
Unrestricted funds
18
**1,051,964**
1,080,899
Restricted funds
16
**816,232**
830,263
Endowment funds
17
**1,088,166**
1,018,977
**2,956,362**
2,930,139
**2020**
At 31 December 2020
**COMPANY NUMBER 00463908**
**111,179**
**1,165,117**
(610,996)
**£**
1,140,729
**1,053,938**
**2019**
**£**
44,531
1,096,198
**(673,609)**|**Notes**
**£**
**£**
**Fixed assets**
Tangible fixed assets
11
**96,852**
98,186
Investments
12
**2,368,002**
2,302,220
**2,464,854**
2,400,406
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Creditors:**amounts falling due
within one year
15
**Net current assets**
**491,508**
529,733
**Net assets**
**2,956,362**
2,930,139
**The Funds of the Charity:**
Unrestricted funds
18
**1,051,964**
1,080,899
Restricted funds
16
**816,232**
830,263
Endowment funds
17
**1,088,166**
1,018,977
**2,956,362**
2,930,139
**2020**
At 31 December 2020
**COMPANY NUMBER 00463908**
**111,179**
**1,165,117**
(610,996)
**£**
1,140,729
**1,053,938**
**2019**
**£**
44,531
1,096,198
**(673,609)**|**Notes**
**£**
**£**
**Fixed assets**
Tangible fixed assets
11
**96,852**
98,186
Investments
12
**2,368,002**
2,302,220
**2,464,854**
2,400,406
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Creditors:**amounts falling due
within one year
15
**Net current assets**
**491,508**
529,733
**Net assets**
**2,956,362**
2,930,139
**The Funds of the Charity:**
Unrestricted funds
18
**1,051,964**
1,080,899
Restricted funds
16
**816,232**
830,263
Endowment funds
17
**1,088,166**
1,018,977
**2,956,362**
2,930,139
**2020**
At 31 December 2020
**COMPANY NUMBER 00463908**
**111,179**
**1,165,117**
(610,996)
**£**
1,140,729
**1,053,938**
**2019**
**£**
44,531
1,096,198
**(673,609)**|
|---|---|---|
||||
|||2,930,139|
|||1,080,899
830,263
1,018,977|
|||2,930,139|
The financial statements have been prepared in accordance with the special provisions relating to small companies under Part 15 of the Companies Act 2006.
Signed on behalf of the Board
## **The Rt Reverend Elizabeth Lane, Bishop of Derby**
Approved and authorised for issue by the Board on 22nd June 2021
The notes on pages 22 to 35 form part of these financial statements.
20
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **STATEMENT OF CASH FLOWS**
At 31 December 2020
|**2020**
**£**
**(136,542)**
**Cash flows from investing activities:**
Dividends, interest and rents
**110,778**
Fixed asset additions
**(1,932)**
Investment additions
**(14,564)**
**94,282**
**Change in cash in the reporting period**
**(42,260)**
Cash at the beginning of the period
**1,096,198**
Cash at the end of the period
**1,053,938**
**1 Cashflows from operating activities**
**2020**
**£**
Net movement in funds
**26,223**
Depreciation
**3,266**
(Gains) / losses on investments
**(51,218)**
Donated assets
**-**
Dividends, interest and rents
**(110,778)**
(Increase)/Decrease in debtors
**(66,648)**
Increase/(Decrease) in creditors
**62,613**
**(136,542)**
**2 Analysis of changes in net debt**
**As at 1**
**January**
**2020**
**Cashflows**
**Other non-**
**cash**
**changes**
**£**
**£**
**£**
**Cash and cash equivalents:**
Cash
1,096,198
(42,260)
-
**1,096,198**
**(42,260)**
**-**
**Net cash provided by/(used in) investing activities**
**Notes to the cash flow:**
**Net cash (used in)/provided by operating activities (see note below)**
**Net cash (used in)/provided by operating activities**|**2019**
**£**
146,905
106,856
-
(257,900)|
|---|---|
||(151,044)
(4,139)
1,100,337|
||1,096,198|
||**2019**
**£**
617,434
7,910
(254,179)
(170,000)
(106,856)
59,254
(6,658)|
||146,905|
||**As at 31**
**December**
**2020**
**£**
1,053,938|
||**1,053,938**|
21
**DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
Year ended 31 December 2020
## **1 Accounting policies**
## **Basis of preparation**
The charitable company is a private company limited by guarantee registered and incorporated in England & Wales. The members of the company are the directors set out on page 1. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member. Derby Diocesan Board of Education meets the definition of a public benefit entity under FRS 102.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Going concern**
The Board have considered the impact of COVID-19 on the charitable company’s income and operating cost base. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Board are confident that they have in place plans to deal with any financial losses that may arise.
The Board have prepared forecasts of income and expenditure for the period to 31 December 2022 and subjected these forecasts to sensitivity analysis which shows that they have sufficient reserves to be able to continue for the foreseeable future. They will continue to monitor the impact on income and take appropriate action as necessary.
The Board therefore continue to adopt the going concern basis of preparation for these financial statements.
## **Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, excluding freehold land, over their estimated useful lives, less residual value, as follows:
Freehold property - 2% straight line Fixtures, fittings and equipment - 33.3% straight line Improvements to tenanted property - 2% straight line
Freehold land is not depreciated.
The de minimis level used for asset capitalisation was £500 during the year.
22
**DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
Year ended 31 December 2020
## **1 Accounting policies (continued)**
## **Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Investments in subsidiaries are measured at cost less impairment.
## **School properties**
The charitable company acts solely as custodian trustee in respect of the school properties and the net acquisition costs, if any, of these properties are therefore written off in the year of acquisition. The proceeds of sale of any of these properties are therefore included in the charitable company's funds in the year of disposal. Costs incurred in respect of properties held for tenancy or ultimate sale are capitalised if material.
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Provisions**
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Fund accounting**
Funds held by the charitable company are either:
**Unrestricted funds –** These are general funds which can be used in accordance with the charitable company’s objectives at the discretion of the trustees.
**Restricted funds –** These are funds which are to be used in accordance with specific restrictions imposed by donors or which has been raised by the charitable company for particular purposes.
**Endowment funds –** These funds represent those assets which must be held permanently by the charitable company. The use of the income arising on these funds is restricted and specific. Any capital gains or losses arising on the investments form part of the fund. Further explanation of the nature and purpose of the restricted funds and endowment funds is included in note 16 and note 17.
## **Income recognition**
All income is included in the Statement of Financial Activities (SOFA) when the Board is legally entitled to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy.
The charitable company operates a scheme for holding Devolved Formula Capital Grants (DFC) paid to schools in advance of the expenditure on projects. This income is deferred in the balance sheet and reflected in cash at bank on receipt (see note 14).Rental income is recognised on an accruals basis.
23
**DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
Year ended 31st December 2020
## **Expenditure recognition**
Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the SOFA category.
Certain expenditure is directly attributable to specific activities and has therefore been included in these cost categories. Certain other costs which are attributable to more than one activity are apportioned across cost categories based on an estimate of the proportion of time spent on these activities. Irrecoverable Value Added Tax (VAT) is expensed in the SOFA (or if incurred as part of a fixed asset addition capitalised) and classified under the heading to which the expenditure relates to.
Up to 50% of the charitable company’s budgeted administration expenses are met by Derby Diocesan Board of Finance Ltd.
## **Employment benefits**
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
Contributions in respect of the personal pension scheme of employees are charged to the statement of financial activities on an accruals basis.
## **Operating leases**
Rentals under operating leases are charged on a straight-line basis over the lease term.
## **Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **Judgements and key sources of estimation uncertainty**
There are no judgements (apart from those involving estimates) that have been made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
An area of key estimation uncertainty, although not a significant risk due to annual professional valuations being undertaken, is the valuation of investment properties. The valuations are subject to judgements of an expert including, but not limited to, the state of repair of the properties, local knowledge and housing market fluctuations.
24
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **2 Donations**
|Donated assets
DfE administration fee
Consultancy
Understanding Christianity
Other income
School service level agreements
Recovery of Mill Street dilapidations
Restricted income
**4 Investment income**
Rents receivable
Bank deposit interest
Other investment income
Property running costs
**6 Charitable activities**
**Note**
Grants payable
Administration costs
7
Establishment expenses
8
Training and resources
9
**3 Charitable activities**
**5 Expenditure on raising funds**
Depreciation of improvements to tenanted properties||**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**-**
**-**
**- **
**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**1,023**
**-**
**1,023**
**-**
**-**
**-**
**-**
**-**
**-**
**4,000**
**-**
**4,000**
**19,400**
**-**
**19,400**
**-**
**-**
**-**
**-**
**347,430**
**347,430**
**24,423**
**347,430**
**371,853**
**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**53,443**
**-**
**53,443**
**1,249**
**77**
**1,326**
**20,454**
**35,555**
**56,009**
**75,146**
**35,632**
**110,778**
**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**9,792**
**10,525**
**20,317**
**1,230**
**-**
**1,230**
**11,022**
**10,525**
**21,547**
**Other**
**Total**
**direct**
**2020**
**£**
**£**
**275**
**275**
**-**
**456,395**
**-**
**12,984**
**-**
**16,425**
**275**
**486,079**
**Direct**
**456,395**
**£**
**costs**
**16,425**
**12,984**
**-**
**485,804**|**2019**
**£**
170,000|
|---|---|---|---|
||||**2019**
**£**
2,857
450
595
3,000
-
144,848
548,616|
||||700,366|
||||**2019**
**£**
50,754
2,535
53,567|
||||106,856|
||||**2019**
**£**
27,101
3,825|
||||30,926|
||||**Total**
**2019**
**£**
807
571,858
15,900
(5,524)|
||||583,041|
25
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **7 Administration costs**
|Specialist conferences
Subscriptions
Officer expenses
Photocopier
Postage
Stationery
Telephone
Hospitality
Sundry expenses
Audit fees
Legal and professional fees
Consultancy
Bank charges
Reimbursment to DBF
Office staff costs (note 10)
Appeals
Other expenditure
**8 Establishment expenses**
ICT costs
Lease hire of equipment
Insurance
**9 Training and resources**
Events and publicity
Resources library
Derby Diocesan Academy Trust Expenditure
Depreciation of fixtures, fittings and equipment|**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**-**
**158**
**158**
**858**
**-**
**858**
**3,427**
**-**
**3,427**
**-**
**13**
**13**
**-**
**(32)**
**(32)**
**-**
**614**
**614**
**-**
**1,028**
**1,028**
**432**
**-**
**432**
**1,207**
**1,786**
**2,993**
**-**
**9,792**
**9,792**
**14,461**
**8,308**
**22,769**
**-**
**2,250**
**2,250**
**-**
**525**
**525**
**20,000**
**20,000**
**40,000**
**68,406**
**212,100**
**280,506**
**-**
**1,990**
**1,990**
**-**
**16,162**
**16,162**
**2,910**
**70,000**
**72,910**
**111,701**
**344,694**
**456,395**
**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**-**
**1,590**
**1,590**
**-**
**1,252**
**1,252**
**-**
**8,106**
**8,106**
**2,036**
**-**
**2,036**
**2,036**
**10,948**
**12,984**
**Unrestricted**
**Restricted**
**2020**
**£**
**£**
**£**
**-**
**16,408**
**16,408**
**-**
**17**
**17**
**-**
**16,425**
**16,425**|**2019**
**£**
1,443
2,278
11,890
1,702
408
894
1,936
757
1,869
8,280
6,723
-
743
413,338
474
3,667
115,456|
|---|---|---|
|||571,858|
|||**2019**
**£**
1,827
1,352
8,636
4,085|
|||15,900|
|||**2019**
**£**
(5,938)
414|
|||(5,524)|
26
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
|**10 Staff costs**
**2020**
**£**
Wages and salaries
**240,044**
Social security costs
**23,958**
Other pension costs
**16,504**
**280,506**
Derby Diocesan Board of Finance
**(193,100)**
**-**
**-**
Net salary cost
**87,406**
Average number of employees:
**2020**
**4**
Full-time equivalent (FTE) number of employees:
**2020**
**3.5**
Number of employees earning more than £60,000 per annum:
**2020**
£60,001 to £70,000
**-**
£70,001 to £80,000
**1**
£80,001 to £90,000
**1**
£90,001 to £100,000
**-**
year but £70k in funds
Grants received towards salary, wages and pension cost (note 1)
Derby Diocesan Board of Finance - for Director of Schools Improvement. None this year but
Derby Diocesan Board of Finance - Additional Grant|**2019**
**£**
340,007
39,330
34,001|
|---|---|
||413,338
(213,110)
(70,000)
(84,544)|
||45,684|
||**2019**
6
**2019**
5.5
**2019**
1
-
-
1|
Trustees’ travel expenses of £14 (2019: £611) were reimbursed during the year. The payment related to travel expenses for 1 trustee (2019: 4 trustees). None of the trustees have been paid remuneration in either year.
## **Remuneration of key management personnel**
Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the Board of Education. During 2020 the role of Acting Director of Education was comprised by 1 employee (2019: 3 employees). Remuneration, pension contributions and national insurance for this employee amounted to £77,957 (2019 - £97,764). During the year, a settlement agreement totalling £81,109 was made in respect of termination of duties of previous key management personnel.
|**11 Tangible fixed assets**
**Cost**
At 1 January 2020
Additions
Disposals
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
Disposals
At 31 December 2020
**Net book value**
**At 31 December 2020**
At 31 December 2019|**£**
**property**
23,170
**equipment**
**Fixtures**
**Improvements**
**fittings and**
-
**£**
64,353
**land and**
**162,008**
74,485
1,932
**£**
**to tenanted**
**-**
-
**1,932**
-
**Freehold**
-
-
**Total**
**£**
**properties**|
|---|---|
||**74,485**
**163,940**
**25,102**
**64,353**|
||21,309
19,363
2,036
-
**-**
-
**3,266**
23,150
-
**63,822**
-
1,230|
||**24,380**
**67,088**
**23,345**
**19,363**|
|||
||**1,757**
**39,973**
**96,852**
**55,122**|
|||
||98,186
41,203
55,122
1,861|
Included within freehold land and property is land which is not depreciated with a cost of £55,122 (2019: £55,122).
27
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **12 Fixed asset investments**
|At 1 January 2020
Additions
Disposals
Realised gains/(losses)
Unrealised gains/(losses)
**At 31 December 2020**
**Investment properties (market value)**
At 1 January 2020
Additions
Disposals
Realised gains/(losses)
Unrealised (losses)/gains
**At 31 December 2020**
**Total fixed asset investments**
CBF Investment Fund income units
Historic cost of investment securities
**Investment properties comprise:**
Ashford School House
Ashford Former School
Starkholmes
Historic cost of investment properties. The additions to Starkholmes are a cost.
COIF Charities Investment Fund income units
**Investment securities within the United Kingdom (market value)**
**Market value of investment securities held with:**
CCLA Investment Management Ltd
Investment in M&G Charifund units|**2020**
**£**
**1,792,220**
**-**
**-**
**-**
**91,218**
**1,883,438**
**510,000**
**14,564**
**-**
**-**
**(40,000)**
**484,564**
**2,368,002**
**2020**
**£**
**45,415**
**1,729,590**
**108,433**
**1,883,438**
**1,289,727**
**300,000**
**160,000**
**24,564**
**484,564**
**£nil**|**2019**
**£**
1,280,141
257,900
-
-
254,179|
|---|---|---|
|||1,792,220|
|||340,000
-
-
-
170,000|
|||510,000|
||||
|||2,302,220|
|||**2019**
**£**
42,728
1,618,298
131,194|
|||1,792,220|
|||1,289,727|
|||340,000
160,000
10,000|
|||510,000|
|||£nil|
The investment property valuations have been supplied by Milner Commercial (the DBE Chartered Surveyor), on the 18th January 2021, upon inspection of the buildings.
The charitable company owns 100% of the issued ordinary share capital of Derby Diocesan Education Services Limited, a company incorporated in the United Kingdom. The company was dormant throughout the year ended 31st December 2020 and reserves amounted to £100. As the company is not trading, a provision has been made against the investment. Derby Diocesan Education Services Limited has the same registered address as DBE.
## **13 Debtors**
|Trade debtors
Other debtors
Prepayments|**2020**
**£**
**75,922**
**20,453**
**14,804**
**111,179**|**2019**
**£**
21,757
13,757
9,017|
|---|---|---|
|||44,531|
## **14 Cash at bank and in hand**
Included within cash is £537,338 at the balance sheet date (2019: £440,660) which is Buildings Capital Grant held by the charitable company on behalf of a number of schools. This amount is included in the balance of cash held at the year end with a consequent increase in debtors £14,119 (2019: £16,109) and other creditors £4,523 (2019: £9,329).
28
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **15 Creditors: amounts falling due within one year**
|Trade creditors
Other creditors
Accruals
Creditors (funds held as agent):
School DFC projects
**16 Restricted funds**
**Current year**
**Restricted income funds**
Wessington Property Sale
NCSL
Schools Improvement
System Leadership
Aspirant Heads
RE Net
Derby Diocesan Board of Finance Fund
Youth Anglo Catholic Work
Ashford School House
Ashford Former School
Starkholmes Land
**Income on endowments (note 19)**
Special Projects Funds
Derbyshire Association of Church Schools
Gell Memorial Prizes Fund
Byroms Charity
Mill Street (St John's Activity Centre)
Shirland Property sale proceeds
School building and IT projects (note 27)|**2020**
**2019**
**£**
**£**
**54,822**
97,557
**-**
0
**67,330**
56,669
**376,617**
176,704
**174,840**
280,066
**673,609**
610,996
As at 1
Income
Expenditure
Gains &
Transfers
**As at 31**
January
Losses
**December**
2020
**2020**
£
£
£
£
£
**£**
217,341
(16,162)
11,210
**217,410**
5,016
-
-
**5,016**
-
(70,000)
-
**-**
1,872
-
-
**1,872**
3,321
-
-
**3,321**
2,189
-
-
**2,189**
-
(277,430)
-
**-**
148
(148)
-
**-**
340,000
-
(40,000)
**300,000**
160,000
-
-
**160,000**
10,000
-
-
**24,564**
3,750
-
-
**4,006**
4,101
-
-
**4,399**
5,095
(127)
-
**5,523**
1,355
-
-
**1,364**
6,047
8,358
-
-
**14,405**
70,028
(19,000)
-
**72,163**
-
298
-
-
-
-
-
70,000
-
-
-
-
-
14,564
-
-
5,021
-
277,430
555
256
-
-
-
-
21,135
-
9
-
-
-
-
-|**2019**
**£**
97,557
0
56,669
176,704
280,066|
|---|---|---|
|||610,996|
||**830,263**
**(382,867)**
**(28,790)**
**816,232 **
**383,062**
**14,564**||
## **Endowment funds**
Investment income on endowment funds is spent on the six restricted funds shown above. Expenditure of £19,127 was incurred during the year (2019: £807).
29
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **16 Restricted funds (continued) Prior year**
|**Restricted income funds**
Wessington Property Sale
NCSL
Schools Improvement
System Leadership
Aspirant Heads
RE Net
Derby Diocesan Board of Finance Fund
Youth Anglo Catholic Work
DDAT Grant
Ashford School House
Ashford Former School
Starkholmes Land
**Income on endowments (note 19)**
Special Projects Funds
Derbyshire Association of Church Schools
Gell Memorial Prizes Fund
Byroms Charity
Mill Street (St John's Activity Centre)
Shirland Property sale proceeds|As at 1
Income
Expenditure
Gains &
Transfers
**As at 31**
January
Losses
**December**
2019
**2019**
£
£
£
£
£
**£**
190,392
(3,667)
25,687
**217,341**
5,016
-
-
**5,016**
-
(70,000)
-
**-**
1,872
-
**1,872**
3,321
-
-
**3,321**
2,189
-
-
**2,189**
-
(278,616)
-
**-**
148
-
-
**148**
-
(200,000)
-
**-**
340,000
-
-
**340,000**
-
-
-
**160,000**
-
-
-
**10,000**
3,498
-
-
**3,750**
3,812
-
-
**4,101**
5,364
(807)
-
**5,095**
1,338
-
-
**1,355**
-
6,047
**6,047**
49,506
-
-
**70,028**
-
-
-
-
-
4,929
-
-
-
70,000
-
-
-
-
278,616
-
-
-
200,000
-
252
-
289
-
538
-
17
-
20,522
-
160,000
10,000
-
-|
|---|---|
||**606,456**
**(553,090)**
**25,687 **
**830,263**
**751,210**
**-**|
## **Wessington Property Sale Fund**
Income of £188,180 gross of sales expenses was received by the Board in the year ending 31 December 2010. The proceeds can only be used ‘in or towards the purchase of a site for, or the erection, improvement or enlargement of the premises of any Church of England Voluntary School in the Diocese of Derby or a teacher’s house for use in connection with such a school’. Income of £5,021 (2019: £4,929) has been generated through the investment of the fund and realised and unrealised gains and losses have also been recognised.
## **NCSL Fund**
Funding provided by the National College of School Leadership (NCSL) specifically to facilitate the development of leadership of teachers in church schools.
## **School Improvements Fund**
Funding received from the Derby Diocesan Board of Finance £70,000 (2019: £70,000) to facilitate the development of school improvement services.
## **System Leadership Fund**
Funding provided by NCSL to support, develop and attract potential head teachers.
## **Aspirant Heads Fund**
Funding provided by the National College School Development Support Agency to provide CPD for potential church leaders. Funding received by four schools, £1,000 each.
## **RE Net Fund**
Funding received from St Christopher’s College Education Trust for the professional development of Religious Education Coordinators and for the improvement of the delivery of religious education.
## **Derby Diocesan Board of Finance Fund**
During the year £277,430 (2019: £278,616) was received from the Derby Diocesan Board of Finance as a contribution towards officers’ salaries and administration costs.
30
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **16 Restricted Funds (continued)**
## **Youth Anglo Catholic Work**
Funding for expenditure on Youth Anglo Catholic projects. Income is released as expenditure is incurred for work on developing young people from Anglo Catholic backgrounds.
## **Ashford School House**
In 2020, legal advice received from the DBE solicitor suggested it would be prudent to reclassify Ashford School House as a restricted fund. Clarity with regards to the sale proceeds, should a sale take place, would only be ascertained after the sale of the property.
## **Ashford Former School**
In 2019, legal advice received from the DBE solicitor suggested Ashford Former School should be capitalised as an asset belonging to the DBE. The current condition of the property does not reflect the potential future value.
## **Land at Starkholmes**
In 2019, legal advice received from the DBE solicitor suggested land at Starkholmes, valued at £10,000 in current conditions, could potentially be sold for up to £200,000 should development opportunites arise. The Board is currently investigating the potential opportunities available for development on the land.
## **DDAT Grant**
Funding received from the Derby Diocesan Board of Finance £nil (2019: £200,000) to facilitate the development of Derby Diocesan Academy Trusts
## **Transfer between funds**
A transfer has been made from unrestricted funds to restricted funds relating to Starkholmes land development additions in the year.
|**17 Endowment funds - permanent**
**Current year**
Special Projects Funds
Derbyshire Association of Church Schools
Gell Memorial Prizes Fund
Byroms Charity
Shirland Property Sale
Mill Street
**Prior year**
Special Projects Funds
Derbyshire Association of Church Schools
Gell Memorial Prizes Fund
Byroms Charity
Shirland Property Sale
Mill Street|As at 1
Income
Expenditure
Gains &
**As at 31**
January
Losses
**December**
2020
**2020**
£
£
£
£
£
**£**
17,260
-
505
**17,765**
11,730
-
675
**12,405**
19,040
-
1,255
**20,295**
865
-
-
**865**
694,982
-
47,836
**742,818**
275,100
-
18,918
**294,018**
Transfers
-
-
-
-
-
-
-
-
-
-
-
-|
|---|---|
||**1,018,977**
**-**
**-**
**69,189**
**1,088,166**
**-**|
||As at 1
Income
Expenditure
Gains &
**As at 31**
January
Losses
**December**
2019
**2019**
£
£
£
£
£
**£**
16,015
-
1,245
**17,260**
10,183
-
1,547
**11,730**
16,164
-
2,876
**19,040**
865
-
-
**865**
585,368
-
109,614
**694,982**
257,897
-
17,203
**275,100**
-
-
-
-
-
-
-
Transfers
-
-
-
-
-|
||**886,492**
**-**
**132,485**
**1,018,977**
**-**
**-**|
The income arising from the endowment funds is accounted for in restricted funds of the charitable company and may be used as follows:
## **Special Projects Funds:**
**-** 80% towards general commitments and special projects **-** 5% towards religious education **-** 5% towards Sunday schools
**-** 10% towards youth work
## **Derbyshire Association of Church Schools**
The funding of repairs, alterations or improvements in church schools, which are not eligible for grants from DfE or the local authority.
31
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **17 Endowment funds - permanent (continued)**
## **Gell Memorial Prizes Fund**
The making of awards and prizes to children within the Diocese in respect of religious education projects.
## **Byroms Charity**
The furtherance of Christian education in certain parishes in Derby.
## **Shirland Property Sale**
The capital and the income of the Trust may be applied to the funding of purchase of a site for, alterations or improvements to, or maintenance of, any relevant school or teacher's house in the area. The income of the trust assets may be applied in or towards the provision of advice, guidance and resources in connection with any matter related to the management of, or education provided at, any relevant school in the area; the provision of services for carrying out inspections; or to defray the cost of employing or engaging staff in connection with the above.
## **Mill Street Property Sale**
The capital and the income of the Trust may be applied to the funding of purchase of a site for, alterations or improvements to, or maintenance of, any relevant school or teacher's house in the area. The income of the trust assets may be applied in or towards the provision of advice, guidance and resources in connection with any matter related to the management of, or education provided at, any relevant school in the area; the provision of services for carrying out inspections; or to defray the cost of employing or engaging staff in connection with the above.
|**18 Unrestricted funds**
**Current year**
Unrestricted funds
**Prior year**
Unrestricted funds
**19 Summary of net assets by fund**
**Current year**
Tangible fixed assets
Investments
Current assets
Current liabilities
**Total net assets**
**Prior year**
Tangible fixed assets
Investments
Current assets
Current liabilities
**Total net assets**|As at 1
Incoming
Resources
Gains &
**As at 31**
January
Resources
Expended
Losses
**December**
2020
**2020**
£
£
£
£
£
**£**
**1,080,899**
**(124,759)**
**10,819**
**1,051,964**
**99,569**
**(14,564)**
Transfers|
|---|---|
||As at 1
Incoming
Resources
Gains &
**As at 31**
January
Resources
Expended
Losses
**December**
2019
**2019**
£
£
£
£
£
**£**
Transfers|
||819,757
(60,877)
96,007
**1,080,899**
226,012
-|
||484,564
**Endowment**
1,250,248
96,852
**1,165,117**
(162,082)
-
-
995,531
**£**
**£**
**Unrestricted**
**funds**
**Total**
633,190
**funds**
**£**
**funds**
331,668
(673,609)
**£**
**(673,609)**
**Restricted**
-
**96,852**
**2,368,002**
-|
||**2,956,362**
**1,051,964**
**816,232**
**1,088,166**|
||-
(610,996)
-
**(610,996)**
622,372
971,337
157,252
12,140
**1,140,729**
673,011
1,006,837
**2,302,220**
**£**
**£**
**£**
**£**
98,186
-
-
**98,186**
**Unrestricted**
**Restricted**
**Endowment**
**Total**
**funds**
**funds**
**funds**|
||**830,263**
**1,018,977**
**2,930,139**
**1,080,899**|
32
**DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **20 Operating lease commitments**
At 31st December 2020 the charitable company had annual commitments under other non-cancellable operating leases as follows:
|**Expiry date:**
Between 1 and 2 years
Between 2 and 5 years|**2020**
**£**
**266**
**-**|**2019**
**£**
1,061
266|
|---|---|---|
## **21 Contingent liabilities**
By virtue of the nature of the charitable company's activities there may be potential liabilities in respect of past property transactions in relation to which the legalities have not been completed. There are no such potential liabilities known to the members of the Board at this time.
## **22 Capital commitments**
As part of its general activities the charitable company is committed to substantial expenditure on the construction, improvement and repair of church schools. These costs will however be eligible for reimbursement by virtue of grants received or contributions from the individual school governing bodies and the Board does not deem these costs to be capital commitments entered into by the Board.
## **23 Pension scheme**
The pension charge represents contributions paid by the charitable company to personal pension schemes of employees during the year to the value of £16,504 (2019: £34,001). At the year end, amounts payable to schemes totalled £nil (2019: £775).
## **24 Related party transactions**
The work of Derby Diocesan Board of Education is funded partly by the Derby Diocesan Board of Finance, who pay the majority of the officers’ salary costs and makes a grant towards operating costs. During the year an amount of £347,430 (2019: £548,616) was received from the Derby Diocesan Board of Finance. The Rt. Reverend Libby Lane was a director of both companies during the year. The balance owing to the Derby Diocesan Board of Finance was £23,861 at the year end (2019 - £10,167).
During the year an amount of £72,960 (2019: £36,508) was paid to Derby Diocesan Academy Trust, a charitable company, relating to payments made for educational activities. These payments are in line with the charitable activities of Derby Diocesan Board of Education. Mr. D. Channon, a trustee of DDBE during the year, was a director of the Derby Diocesan Academy Trust during the year. The balance was £44,600 at the year end (2019 - £84,170).
## **25 Controlling party**
The charitable company is controlled by the Board of Trustees. In the opinion of the trustees, there is no overall controlling party.
## **26 Funds held as custodian trustee on behalf of others**
There are a number of school properties, which are not recorded as assets held on behalf of others, as the destination of sale proceeds is uncertain.
## **27 School building and IT projects**
The Board assists Voluntary Aided schools with the administration of funding for school building projects and provision of IT equipment. The Board acts as agent on behalf of school governing bodies in receiving funds from the Department for Education, local authorities and other funding sources and settling contractors' costs and professional fees. This activity of the Board is not reflected in the Statement of Financial Activities as the transactions are those of the school governing bodies rather than the Board. Total expenditure on school building projects and IT equipment during the year was £534,341 (2019: £548,203).
33
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **NOTES RELATING TO THE FINANCIAL STATEMENTS**
For the year ended 31 December 2020
## **27 School building and IT projects (continued)**
Movement on the funds held by the Board as agent during the year were as follows:
|Balance as at 1 January 2020
Total income during the year
Total expenditure during the year
**Balance as at 31 December 2020**|**£**
176,704
734,252
(534,341)|
|---|---|
||**376,616**|
## **28 Prior Year Comparative Statement of Financial Activities**
|**Income and endowments from**
Donations
Charitable activities
Investments
**Total income and endowments**
**Expenditure on**
Raising funds
Charitable activities
**Total expenditure**
**Net income before investment gains**
Net gains on investments
**Net income**
Gross transfers between funds
**Net movement in funds**
**Reconciliation of funds**
**Total funds at 1st January 2019**
**Total funds at 31st December 2019**|**Restricted**
**Endowment**
**Funds**
**Funds**
**£**
**£**
170,000
**-**
548,616
-
32,594
-
**£**
151,750
700,366
74,262
106,856
**£**
**Unrestricted**
**2019**
**Funds**
**Funds**
**Total**
170,000
**-**|
|---|---|
||**751,210**
**-**
**226,012**
**977,222**|
||-
-
553,090
-
30,926
30,926
29,951
583,041|
||**553,090**
**-**
**60,877**
**613,967**|
||**198,120**
**-**
25,687
132,485
**165,135**
**363,255**
96,007
254,179|
||**223,807**
**132,485**
-
-
-
**-**
**261,142**
**617,434**|
||**223,807**
**132,485**
**606,456**
**886,492**
**261,142**
**617,434**
**819,757**
**2,312,705**|
||**830,263**
**1,018,977**
**1,080,899**
**2,930,139**|
34
## **DERBY DIOCESAN BOARD OF EDUCATION**
## **SCHEDULE OF ADMINISTRATION EXPENSES AND SUPPORT COSTS**
For the year ended 31 December 2020
|**Training events and publicity**
**Officers’ training & resources**
Specialist conferences
Resources library
Subscriptions
**Officers' travel and other expenses**
Director of Education
Director of Schools Improvement
Schools Work
Children’s Work
Youth
Deputy Director of Business
Car parking & miscellaneous
**Office administration**
Photocopier
Stationery
Telephone
Hospitality
Postage
ICT costs
Maintenance of equipment
Lease hire of equipment
Publicity
Appeals
Sundries
**Remuneration**
Wages and salaries
Employer’s national insurance
Pension contributions
**Other expenses**
Legal and professional fees
Accountancy and independent examination
Insurance
Bank charges
Consultancy
Property Expenses
DDAT Expenditure
Contingencies
**Total administrative expense & support costs**
Depreciation of fixtures, fittings and equipment
Grants received and amounts charged to restricted funds
Contribution to schools' building administration|**2020**
**2020**
**Budget**
**Actual**
**£**
**£**
**620**
**(6,441)**
1,500
158
500
17
2,400
858
**4,400**
**1,033**
500
-
-
-
1,000
496
300
101
25
152
250
30
6,700
2,338
**8,775**
**3,117**
2,000
1,252
1,500
627
2,000
1,028
800
432
800
(32)
4,500
1,590
-
-
2,400
-
-
4,760
-
1,990
2,000
2,993
5,785
2,036
**21,785**
**16,676**
196,878
240,044
21,258
23,958
19,688
16,504
**237,824**
**280,506**
-
-
**237,824**
**280,506**
(193,100)
(193,100)
**44,724**
**87,406**
18,000
22,769
8,280
9,792
9,755
8,106
850
525
-
2,250
19,000
21,546
70,000
91,310
30,000
40,000
**155,885**
**196,298**
**236,189**
**298,089**|**2019**
**Actual**
**£**
**2,732**|
|---|---|---|
|||1,443
414
2,278|
|||**4,135**|
|||-
1,626
1,784
709
1,698
108
5,965|
|||**11,890**|
|||1,702
894
1,936
757
408
1,827
-
1,352
-
474
1,869
4,085|
|||**15,304**|
|||340,008
39,330
34,001|
|||**413,339**
-|
|||**413,339**
(367,654)|
|||**45,685**|
|||6,723
8,280
8,636
743
-
30,926
115,456
-|
|||**170,764**|
||||
|||**250,510**|
This page **does not** form part of the statutory financial statements
35