2020-12-31-accounts

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MANCHESTER DIOCESAN BOARD OF EDUCATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Company No. 00618201– Registered Charity No. 530002

		Pages
Organisation	and Administration details	1
Mission Statement and Vision		2
Legal Objects		2
Trustees’ Report		3-14
	Strategic Aims including Public Benefit
	Objectives for the year
	Activities and achievements in the year
	Aims and objectives for 2021

Financial review
Structure and governance
Principal risks and uncertainties
Key management personnel
Trustees' Responsibilities Statement

Independent Auditor’s Report	15-17
Statement of Financial Activities	18
Balance Sheet	19
Cash Flow Statement	20
Notes to the Financial Statements	21-34

ORGANISATION AND ADMINISTRATION DETAILS

CHAIRMAN	The Right Reverend M Davies	The Right Reverend M Davies
SECRETARY	Deborah Smith
BISHOP OF MANCHESTER	The Right Reverend David Walker
DIRECTORS	The Directors are	the members of the Board of Education
	Details of Board members are given on page 10
REGISTERED OFFICE	Church House, 90	Deansgate, Manchester, M3 2GH
	Telephone:	0161 828 1400
	Fax:	0161 828 1484
	Email:	ManchesterDBE@manchester.anglican.org
PRINCIPAL OFFICER	Deborah Smith (Director of Education)
BANKERS	Royal Bank of Scotland plc
	St Ann Street
	Manchester
	M60 2SS
AUDITORS	BDO LLP
	3 Hardman Street
	Spinningfields
	Manchester
	M3 3AT
SOLICITORS	Ms Jane Monks, LL.B (Notary Public)
	Diocesan Registry
	90 Deansgate
	Manchester
	M3 2GH
INVESTMENT ADVISORS	CCLA Investment Management Ltd
	Senator House
	85 Queen Victoria Street
	London
	EC4V 4ET
CONSTITUTION	Manchester Diocesan Board of Education is a Company Limited by Guarantee
	Registered in England Number 00618201
	Registered Charity Number 530002

The Charity is bound by its Memorandum and Articles of Association and by the statutory duties of the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011.

1. Principal Activity

The principal activity of the Manchester Diocesan Board of Education (“MDBE”) is to fulfil its statutory duties to:
promote education in the Diocese of Manchester which is consistent with the faith and practice of the Church of England;
to promote religious education and religious worship in schools in the Diocese;
to promote church schools in the Diocese and advise governors on any matters;
to promote co-operation between the Board and other bodies; and
to advise on the maintenance, improvement and extension of school buildings in Voluntary Aided schools and give permission.

The MDBE advises on the appointment of senior leaders in church schools; it arranges statutory inspections of the Christian distinctiveness of church schools; and it considers giving consent to church schools that wish apply for Academy Orders.

The MDBE is also responsible for the promotion and development of Christian education in parishes, and Christian chaplaincy in institutions of Higher Education.

2. Aims

The aim of the MDBE is to fulfil its statutory duties within the resources available.

The MDBE is a very significant part of the mission of the church in the Diocese of Manchester. The principal aim of the MDBE’s work is ‘To enable children and young people to encounter the Christian gospel and to grow in faith, through providing for their Christian education and nurture in schools, parishes and other settings’.

The MDBE provides the expertise for the whole Diocese to draw on in relation to:

mission and evangelism with children and young people;
faith development;
religious education in both formal and informal settings;
spiritual development of children and young people; And
initiation into the worshipping community.

The legal objects of the company as set out in the Memorandum and Articles of Association are as follows:

To be the Diocesan Board of Education for the Diocese of Manchester as at present constituted or as hereafter it may be constituted, and to exercise and perform within that Diocese the rights, functions, powers, duties and obligations given to or imposed upon a Diocesan Board of Education by the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011, or any Measure passed by the General Synod of the Church of England or Act of Parliament amending or replacing the same or for the purposes of any Measure passed by the said Synod or Act of Parliament for which the Diocesan Conference may appoint the Board to act.
To act as Trustees in respect of any land stocks shares funds and securities held in trust for or belonging to any educational foundations or any other charitable foundations having objects which may be similar to or within the scope of the objects of the Board and to do such acts and things as may be necessary or expedient to be done in relation thereto under or by virtue of any scheme or schemes or Trust Deed or Trust Deeds affecting the same.

The work of the MDBE is closely aligned to the Bishop’s Fit for Mission statement to ‘be a worshipping, growing and transforming Christian presence at the heart of every community’. It aims to meet the Diocesan objectives of ‘being a worshipping, growing and transforming Christian presence’ by providing 191 CE schools, support for children and youth work in parishes and chaplaincy support for students in institutions of higher education.

1. Main objectives for the year

The main objectives are the continuing implementation of the Mission Statement:

The maintenance and promotion of the distinctive contribution of Church of England schools to the education provision and mission within the Diocese of Manchester.
The development of additional Church of England school provision, particularly in the areas of demographic growth.
Children and Youth Work to increase the number of children and young people in regular contact with the Christian gospel and to provide Christian discipleship pathways for children and young people in schools, parishes and families in Bolton.
To continue to work with other Christian churches and other faith communities to help colleges develop appropriate provision for students’ spiritual growth.

2. Strategies for achieving objectives

The strategy for achieving these objectives continues to be based on priorities identified by the Board and its’ officers. Officers’ individual performance objectives also identify the areas they will be working in to achieve them. The restrictions that came into force as a result of Covid meant a re-evaluation of the Board’s priorities with a focus on supporting the mental well-being of all connected with CE schools.

3. Grant making policies

The MDBE gives grants to schools that have made applications for support with the governors’ liabilities for capital building projects. The level of grant is determined following consideration of the relevant information and the availability of funds. The MDBE gives other grants to promote statutory functions laid down in the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011.

Advice re school improvement and school place planning

MDBE officers meet with local authorities to identify and plan intervention in schools causing concern.
Both Ofsted and SIAMs inspections were suspended in March 2020 as a result of national lockdown and restrictions.
Between January – March 2020 16 Ofsted inspections took place.
Ten schools retained a good inspection judgement.
Two schools previously judged Requires Improvement received a Good judgement.
Three schools previously judged Good received a Requires Improvement judgement.
One school retained its’ Requires Improvement judgement.

Advice re school improvement and school place planning (cont)

In 2020 there were no published data regarding school standards and pupil achievement due to the restrictions caused by Covid-19.
Five Statutory Inspections of Anglican and Methodist Schools (SIAMs) took place between January 2020 and 20th March 2020.
Three schools received a Good Judgement.
Two schools previously judged Outstanding were graded Excellent.
We employed 13 Diocesan Schools Advisors on a sessional basis to support school leadership and management, including governance.

Advice re religious education and collective worship

All SIAMS Inspectors registered with the MDBE continued to receive their compulsory training prior to inspections being suspended.
Quality assurance of inspection process and the publication of reports continued to be commissioned from the Diocese of Liverpool.

Advice to governing bodies

Advice and guidance offered to schools seeking to revise their admissions policies and schools seeking to reconstitute their governing body/change their name.
Consultancy was delivered for Governors/Academy Directors and Members.
Bespoke advice, briefing and consultation re academy development was given to individual school governing bodies.
Advice and guidance was provided to governing bodies considering federation with another school, and to governing bodies considering changing the age range of the school/establishing or discontinuing nursery provision.
Advice and guidance was provided on request to governing bodies on complaints procedures, parental rights to withdraw children from RE and/or collective worship, and to governing bodies concerned about new requirements for Relationships Education.
Advice was given on possible Free School admission arrangements.
Advice and support for schools completing an application for variances to admission policies in respect of faith based over subscription criteria was given with co-ordination and applications being submitted by MDBE to Office School Admissions on schools’ behalf.

Support for leadership and management

Head Teacher cluster and support meetings took place virtually due to national lockdown restrictions. Attendance at these meetings continued to remain high with Head Teachers from across the Local Authorities within Manchester Diocese attending.

Support for leadership and management (cont)

Eight substantive Head teachers and eight acting Head Teachers were appointed to take up posts in 2020 with DBE advice and follow up support. All new Head teachers were invited to attend a termly induction session with the Director, Chair of MDBE and the Diocesan Secretary.
Various annual celebration and commissioning events did not take place as a result of national lockdown and subsequent restrictions. These included the annual school leaders and clergy conference planned for April 2020, as well as the thanksgiving for retiring Head Teachers and commissioning of newly appointed Head Teachers usually.
Two half day virtual conferences for primary and secondary school leaders took place in October 2020. Andy Wolfe, Deputy Director of CE national Education Office was the key note speaker. As a result of this conference three peer support networks were launched for school leaders.

School buildings

80 projects were approved by the Education and Skills Funding Agency (ESFA) and the MDBE. Total expenditure on capital work including IT for 2020 was £2,992,135 (There is a carryover of £1,320,360 of SCA to be allocated in 2021 due to an additional amount granted in 2019 for £6,067,982).
Projects for the year focused on works to improve the condition of schools. Capital building projects have included amongst others:

St George Westhougton St Matthews Little Lever St Andrews Radcliffe St Marys Hawkshaw St Marys Prestwich St Stephens Elton All Saints Newton Heath St Marys Moston St Philips Hulme School of the Resurrection School of the Resurrection St Agnes St Hildas St Hughs East Crompton St James St Lukes St Lukes St Mathews Chadderton St Thomas Moorside Middleton Parish Milnrow Parish St Michaels Alkrigton St Johns Thornham St Michaels Bamford Christ Church Patricroft Godfrey Ermen St Marks Worsley

Complete roof replacement Electrical rewire

H&S improvements H&S improvements Fire safety works Boiler replacement Refurbishment of toilets

Re roofing Window replacement
H&S kitchen ventilation
Re roofing kitchen
H&S improvements
Fire door and glazing p1

Flat roof replacement

Phase 4 electrical rewire

Roofing works Electrical correction

Replace flat roof and damp prevention
Flat roof replacement works

Boiler replacements

Fire safety improvements Safeguarding and fencing
Safeguarding door access

Heating replacement floor 1 and ground floor Hall and associated works Roofing replacement Kitchen rewire asbestos removal

School buildings (cont) St Philips Salford New boundary fencing and entrance - health and safety St Thomas Heaton Chapel Heating replacement Holy Trinity Aul Playground refurbishment St George Mossley Ceiling replacement St Michaels Flixton Flat roof replacement St Marys Leigh Above and below ground drainage repairs St George Central Replacement doors and windows Saviours Collyhurst Heating St Georges Mossley Wall replacement St Marys Droylsden Boiler

Children’s work

A workshop on Children’s Spirituality was delivered in Chester Diocese and one on working with schools delivered within two IME training days hosted by the Education Department.
A training session in Children's Ministry was developed and delivered for All Saints training College
Support and consultancy was offered in parishes for new and existing children’s work including the appointment of employed workers and those already in post
The Family worship and Beyond grant fund was administered
Social media presence was increased
Networking and consultation with ecumenical colleagues continued.
Development of and signposting to resources for news ways of working and remote services was implemented
Admission of baptised children to Communion before Confirmation, the Child Friendly Church Award Scheme, and Messy Church were promoted.
Resources for children’s ministry, and the children’s section of the Diocesan website, were maintained and updated; a contribution made to the School Newsletter.
Support and advice was offered to the Children Changing Places Project
Year 6 Leavers’ services were developed be delivered remotely by schools
Weekly faith at Home resources and classroom collective worship was developed and delivered
Wellbeing/retreat days for staff and MHFA one day training held at the start of the year
Growing Faith Peer Support Network was begun

Youth work

Throughout the Year our Diocesan Mental Wellbeing Youth Worker continued to deliver both MHFA and bespoke training on mental wellbeing and resilience in both schools and on parish level.
Several large mental wellbeing resources were written in partnership with the Diocese Mental Wellbeing Youth Worker and the Diocesan Childrens’ Officer, including the school resource, Renew
Amy Sixsmith left her role as Diocesan Mental Wellbeing Youth Worker and subsequently F&GP agreed that the remaining funding for the project could be used to train 2 further instructor in Youth MHFA, with the Diocesan Youth Officer being one of these

Youth work (cont)

Visited Finland for camp and evaluation meetings in February. The camps did not take place due to lockdown restrictions.
Continued to deliver safeguarding training at Level 0 and 1, and continue to be part of the Diocesan Safeguarding Panel
Delivered training for youth work students for South West Youth Ministries, Breathe youth work event, and IME training for curates on youth and schools work.
Developed and regularly updated Facebook youth work resource page and increased Twitter engagement during lockdown
Created a number of resources for chaplains and youth leaders, including Stations of the Cross and Advent Calendar during the year
Developed a resource across the Northern Province with other DYOs to support and resource youth leaders and workers called Live Youth Work Conversations
Training and consultancy on appointments of parish youth workers was provided and supported, and continue to meet on a monthly basis with employed youth workers from across the diocese.

Public benefit

The trustees confirm that they have complied with the duty under section 4 of the Charities Act 2006 to have due regard to the public benefit guidance issued by the Charity Commission.

The charity is constituted in accordance with the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011.; it is a body corporate and a Director of Education is appointed as its secretary.

The MDBE’s statutory function is to promote, or assist in the promotion of education in the Diocese which is consistent with the faith and practice of the Church of England. It does so by sustaining or growing the proportion of CE places in each local authority (there are 58,000 school places in 191 schools).

The MDBE’s statutory function is to promote, or assist in the promotion of, religious education and collective worship in CE schools in the Diocese. It does so by advising governing bodies of church schools through provision of specialist Diocesan School Advisors as well as curriculum support groups and training for specialists and non-specialists.

The MDBE’s statutory function is to advise the governing bodies of CE schools ‘on any matter’. It does so by advising CE schools which are a ‘cause for concern’ and advising the leadership and management of those schools on a range of matters such as academy development.

The MDBE’s statutory function is to co-operate with local authorities and other bodies. It does so by meeting regularly with eleven local authorities to identify schools causing concern.

In addition, the MDBE supports work with children and youth in parishes and the Diocese as a whole, and supports chaplaincy provision in the four universities.

CE schools, colleges, universities and parishes themselves are open to all those who apply and, in some schools and universities, meet the admission criteria. The CE schools in the Diocese meet the needs of all those who attend, without fear or favour, and whether they are of the Christian faith, other faiths or no faith.

In the financial year 2021, the MDBE will continue to meet its over-arching objectives and fulfil its statutory duties. The further development of academy status may continue to progress in 2021. The MDBE will continue to develop and promote its academies policy and strategy during the year, and explore with interested schools the efficacy of entering into collaborative arrangements.

This Diocese already articulates a specific role in advising and supporting improvement in CE schools that give cause for concern. As the role and funding of local authorities in the field of education continues to diminish, we anticipate that the role of the Diocese will be subject to greater demands. We continue to have a desire to become more proactive in supporting schools currently graded as ‘outstanding/good’ by Ofsted/SIAMS. We are looking to enhance the support we provide for schools regarding upholding and developing the Christian distinctiveness.

We are aligning MDBE strategic priorities closely with those of Manchester Diocesan Board of Finance (MDBF). For 2021 these will specifically focus on supporting MDBF’s zero carbon neutral targets, ensuring the offer for youth and children’s work is at the heart of both the MDBF’s Transformation agenda as well as training offer. Aside from this, we are undertaking a review of our administration and processing systems to make more use of databases and collaborative working arrangements.

We continue to work with DBE services and are working more closely with them regarding co-ordination of building projects within Diocesan schools. Alongside this we are seeking to promote the Total Property Management offer to MDBE schools. Income from our SLA is projected to remain at its’ current rate more or less; additional income may be generated by providing advice on academy conversion. We are also looking to increase income from offering a wider variety of training than previously.

Reserves policy

The reserves held by the MDBE are mostly restricted, held for the provision of support for schools, using the income generated for staffing and running costs, and capital and other grants. They have arisen primarily from the proceeds of former school sites, interest and investment gains thereon and their use is therefore restricted under S554 of the Education Act 1996.

In addition, the MDBE has generated other sources of income from its activities, which are unrestricted. These have been used to support the work of the MDBE.

The Statement of Financial Activities (SOFA) for the year shows net resources expended of £32,214 (2019: net resources expended of £145,154) before net gains and losses on the revaluation of investments.

The level of restricted reserves at the year-end was £6,016,063 (2019 - £5,659,000) and of unrestricted reserves was £260,293 (2019 – £257,887). The MDBE has a policy to maintain at least three months’ revenue commitment as a working reserve. At the year-end unrestricted reserves were £260,293, or over six months’ commitment. The Trustees are consequently satisfied that an appropriate level of unrestricted reserves are held. The company holds fixed asset investment within restricted funds. The unlisted investments provide investment income. As these are restricted funds, these are not included within the general unrestricted funds.

The Financial Statement illustrated a deficit (before Investment losses) of £32,214 which includes the net expenditure in relation to God and the Big Bang for 2020 of £65,217 and also net expenditure from the Re-investment of Reserves of £51,865. The operating surplus excluding God and the Big bang and the Re-investment of Reserves is £85,086. There has been an unrealised gain on Investments of £391,683 making the company’s overall position a net surplus of £359,469. The total Reserves on 31 December 2020 now stand at £6.276m (2019: £5.917m).

There were no management actions arising from the audit report.

Going Concern

We have made an assessment of the Charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements were approved for release.

In making our assessment, we considered the financial impact of Covid-19 on our cash flow forecast, performing stress testing of these plans. The forecasts take into consideration the impact of COVID-19 including the potential impact on the company’s income streams and the mitigating actions in place to address any reductions in income.

Having performed our assessment we were able to conclude that the Charity is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern basis.

In making our assessment we did not consider there to be any material uncertainty relating to events or conditions that individually or collectively may cast significant doubt on the Charity’s ability to continue as a going concern.

Investment policy

In accordance with the Memorandum and Articles of Association, the Trustees have the power to invest funds not immediately required in such investment securities or property as may be thought fit by them.

The MDBE holds long term surplus funds, which are invested in a broadly based ethical investment fund, and this is currently through the DBF Investment Fund, managed by CCLA. The bid value of these investments increased by 6.9% (2019: Increased by 27.9%). Dividends receivable amounted to £172,772 (2019: £167,682) – a yield of 2.85% (2019: 2.96%), which is in line with our benchmarks.

Taxation

The MDBE is a Registered Charity (No. 530002) and as such is not liable to UK Corporation Tax on its charitable activities.

The Trustees have prepared this report in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Member Recruitment, Induction and Training

The MDBE is governed by the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011.
Members of the Board are appointed or elected within the terms of the Manchester Board of Education Order 2011, i.e. either by (a) the Diocesan Bishop or (b) the Diocesan Synod for Archdeaconry members or (c) the MDBE itself, using the relevant power of co-option. Elections are held each Synod triennial period.
The roles and responsibilities of Trustees are described and explained at the first meeting of the new triennium in a specific induction programme. In addition, further training of Trustees is arranged in relation to education policy development.
Members appointed during the triennium are given induction training. Members who serve on specific short-life sub-committees and working parties are given training and briefing in these areas e.g. the short-life Investment Sub-Committee, but many are already expert in these fields and selected for this reason.

The MDBE itself is responsible for policy decisions and statutory functions in relation to Church of England schools, and monitoring and evaluation of its policies and purposes.
The Director of Education published the statutory Annual Report to Diocesan Synod on 10 October 2020. Additionally, an Annual Review document was shared specifically outlining the breadth and depth of the work of MDBE across the diocese.

The membership of the MDBE during the period from 1 January 2020 to the date of this report, unless otherwise stated, was as follows:

Chair: Rt Revd M Davies, Bishop of Middleton Ex Officio: Rt Revd D S Walker, Bishop of Manchester

Company Secretary: Deborah Smith

Appointed by Bishop

The Rt Revd M Davies Mr H Williams OBE Vice Chair

Co-opted Members

Ms K Morris (Retired 2021) Revd P Williamson Revd M Cox Mr G Walczak

Manchester Archdeaconry

Clergy Revd Canon F Sher

Lay Canon Dr Addy Lazz-Onyenobi

B olton Archdeaconry Clergy Revd Canon Dr Chris Bracegirdle

Lay Mr L Yarwood

Rochdale Archdeaconry Clergy Lay Revd Rachel Damaris Battershell Mr Richard Lait Salford Archdeaconry: Clergy Lay Revd Karen Owen Mr Peter Wright

The MDBE has a standing committee to consider applications from CE schools for consent to apply for an Academy Order (Academy Act 2010 S 3 iv) or consent to amend the Articles of Association of an existing academy.

The following are sub-committees of the Board:

Finance and General Purposes Committee (F & GP) , which has been delegated the following functions by the Board:

Financial management

To scrutinise the financial management of the Board, including budget setting, the approval of accounts and the monitoring of income and expenditure.
To review, annually, the investment and reserves policies.
To review, annually, the service level agreement (SLA) and maintenance contribution.
To review, annually, the contribution of DBE Services to the Board.

Estates management

To scrutinise financial assistance to schools, including review the policy annually and approve of grants and loans in accordance with the policy.
To approve of the arrangements for the disposal of redundant school properties.

Human resources management

To review staffing issues, including policy, job descriptions, remuneration, disciplinary or competency issues.

The Schools Committee , which has responsibility to promote and scrutinise the work of the officers in the following functions:

Support for changes to school organisation

Scrutinise the advice in relation to proposals to open/close/significantly enlarge a Church school and resolve any related matters.
Scrutinise the advice given to church schools in relation to admission arrangements.

Statutory inspection of Anglican and Methodist schools (SIAMS)

Scrutinise the outcomes of SIAMS inspections and the overall performance of church schools e.g. test and examination results, in terms of attainment and progress.

Support for CE school leadership and management

Promote, and receive advice on, the services provided by the Diocese under Section 2 (a) of the

Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011 specifically:
The appointment of headteachers and deputy headteachers in church schools.
The support for schools categorised by Ofsted as failing to provide an adequate education (i.e. special measures /serious weaknesses) or those otherwise causing concern.
- The appointment of governors to church schools and their training in the distinctive aspects of church schools.
The support given on church/school relationships

Related Parties

Manchester Diocesan Board of Finance is a Charitable Company limited by guarantee, situated at 90 Deansgate, Manchester, M3 2GH. The charity is connected to MDBE by virtue of the fact that the Manchester Diocesan Synod has the power to appoint the majority of the Committee of Management, constituting the Board of Directors for each charity.

The policies and activities of MDBE, within the framework of the Diocesan Boards of Education Measure 1991, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011, reflect and contribute to the vision and mission of Manchester Diocese which is to be a worshipping, growing and transforming Christian presence at the heart of every community.

MDBE is a shareholder in the trading company, DBE Services Ltd, situated at DBE Services, Clayton House, Walker Industrial Estate, Walker Road, Guide, Blackburn, BB1 2QE.

MDBE’s accommodation is provided by Manchester Diocesan Church House Company Ltd (which is a subsidiary of MDBF)

Higher education

The work of the MDBE in relation to higher education is performed by chaplains based at the Universities of Manchester, Salford and Bolton. Their work in Manchester is scrutinised by the governing body of St Peter’s House and in Bolton by the Vice-Principal’s Faith and Spirituality Sub-Group (Bolton) The chaplains also contribute to the BOE’s annual report to Synod.

Custodian trusteeship

MDBE holds, as Custodian Trustee, for a number of Parochial and school funds, investments and bank deposits with an aggregate market value of £4,885,633 (2019 - £4,674,252) which are not included in the Balance Sheet. This includes monies from the Department for Education, which are held in individual accounts for schools for their building works. These investments are held on behalf of schools and parishes whose charitable purposes are similar to those of the MDBE. These assets are held securely and separately from those of the MDBE that is responsible for their safe custody.

CHARITY GOVERNANCE CODE

The Charity Governance Code was published to help charities and their trustees develop high standards of governance. The code sets out seven principles and recommended practice. Below are the seven principles with an explanation of how MDBE operates against these principles:

Organisational purpose

The organisational purpose of MDBE is clearly defined in statute and policy decisions made over time. It has identified clear aims under such duties and policies and measures outcomes against those aims. It has a strategic plan and works from a balanced budget with a consistent history of providing a secure financial platform for its operations.

Leadership

The Board provides effective strategic leadership in order to fulfil the purpose of the company and meet its objectives. Its remuneration policy is determined by the employer of officer, the MDBF.

Integrity

The Board acts with the integrity expected of the charity. Conflicts of interest are declared annually and before each meeting, and gifts and hospitality are recorded.

CHARITY GOVERNANCE CODE (cont)

Decision-making, risk and control

Decisions of the Board are clearly articulated in papers and minutes, and counted votes where necessary. The Board receives a termly risk register and mitigation and control of risks are monitored. Board papers and minutes report movement in the risk register.

The Board does not have an Audit Committee, but it does have a Finance and General Purposes Committee which is separately chaired and meets in tandem with the Board.

Board membership combines representative interests with an appropriate skill mix at both Governing Body and subCommittee levels.

Board effectiveness

The Board membership combines experience, new and renewed membership. Sub-committee structures are slim and terms of reference are clear. Meetings are scheduled for the triennium with clear rules about the timing of distribution of papers and minutes.

The Board accesses legal, financial and HR services, and financial colleagues form the DBF report to, and attend, relevant meetings.

Diversity

The Board includes members who are from different ethnic and gender backgrounds. Reasonable expenses are paid on an equitable basis to all who attend.

Openness and accountability

The Directors’ Report includes a statement of public benefit. Its Minutes are scrutinised by the Bishop’s Council. Remuneration details of senior employees are detailed within Note 15 of the ‘Notes to the Accounts’.

The Trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the MDBE, and are satisfied that systems are in place to mitigate exposure to the major risks. The Director of Education has increased formality to risk identification/mitigation by creating a formal risk register. The risk register has been a standard agenda item at all MDBE meetings since 2008, with the main ones detailed below:

Financial risks remain low despite a period of uncertainty due to Covid 19.
‘Academy risks’ - of being ‘caught-out’ by a rush of sponsorships, or devising a post-election Diocesan strategy – remain acute and are likely to challenge our current policy and strategy. The risk attached to those academies which we do sponsor remains high and has potentially the highest level of impact.
A potential financial risk is an impact on income from investment which is factored into our financial risk. There is a minimal employment risk in relation to our schools’ workforce.
There is a reducing risk that the MDBE will not be strategically prepared for any rush of applications for academy status, or that the MDBE is ‘forced’ to sponsor unsuccessful schools which would subsequently fail. This risk has been reduced, partly owing to the MDBE’s clear policy of requesting our existing high-performing academies to take on this role.

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 MDBE. All staff are employed by the MDBF and staff costs recharged to MDBE. The MDBF Staffing Committee acts on behalf of the Trustees on employment practice and development of human resources. The Committee reviews salaries in the MDBF and MDBE, and approves recommendations for salaries in relation to new posts or regrading of posts. The MDBF has a grading structure with 8 pay bands, within each pay band there are 3 increment points. Posts are allocated a grade with increments or a spot grade; some posts span two grades. The MDBF tracks market rates and occasionally takes part in national benchmarking data collection with other Diocese.

The Trustees are responsible for preparing the Annual Report including the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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 irregularities.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

In preparing the Trustees’ Report, advantage has been taken of the small companies exemptions provided by section 415A of the Companies Act 2006.

Approved by the Board on and signed on its behalf by

MARK DAVIES Director

Date: 28[th] September 2021

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF MANCHESTER DIOCESAN BOARD OF EDUCATION

Opinion on the financial statements

In our opinion, the financial statements:

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 for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Manchester Diocesan Board of Education (“the Charitable Company”) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of 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).

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 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 related 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 Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Mission Statement and Vision, Legal Objects and the Trustees’ Report. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of

Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors’ Report, which are included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements.

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 Strategic report or the Trustee’s 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;

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information 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 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 determines 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

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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

Based on our understanding and accumulated knowledge of the Charitable Company, and the sector in which they operate, we considered the risk of acts by the Charitable Company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. We considered the significant laws and regulations to be United Kingdom Generally Accepted Accounting Practice (including

FRS102 and the Charities Statement of Recommended Practice) and the UK Companies Act 2006. All audit team members were briefed to ensure they were aware of any relevant regulations in relation to their work, areas of potential noncompliance and fraud risks.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of an override of controls), and determined that the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper incoming resources recognition.

Our audit procedures in response to the above included, but were not limited to:

Agreement of the financial statement disclosures to underlying supporting documentation;
Challenging assumptions and judgements made by management. No significant accounting estimates were identified;
Procedures to test incoming resources including agreement of incoming resources recognised to supporting documentation on a sample basis and testing incoming resources recorded around the year end to check the appropriate year end cut-off;
Identifying and testing journal entries identified as potentially unusual. This testing included, but was not limited to, any journal entries posted with specific keywords, journals posted by unexpected users, and journals posted to least used accounts;
Discussions with management, and those charged with governance, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Discussions with management, and those charged with governance to understand if there has been any Serious Incident Reports made to the Charity Commission either during the period or post year end;
A review of trustees’ meeting minutes both during the period, and post year end, for any known or suspected instances of non-compliance with laws and regulation, Serious Incident Reports made to the Charity Commission or fraud;
Enquires to confirm with management that there was no legal correspondence during the period, or post year end, requiring review;
Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

Hamid Ghafoor (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Manchester, UK Date: 28 September 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

		Unrestricted Restricted	Unrestricted Restricted	Unrestricted Restricted	Total	Total
			Funds Funds		Funds	Funds
			2020	2020	2020	2019
	Note	£	£		£	£
INCOME AND ENDOWMENTS FROM
Donations and Legacies	2	46,491	140,004		186,495	180,887
Income from Charitable Activities	3	214,701	42,252		256,953	288,255
Other Trading Activities	4	-	30,750		30,750	41,000
Income from Investments	5	-	197,070		197,070	191,443
		───────	───────		───────	───────
TOTAL INCOME AND ENDOWMENTS		261,192	410,076		671,268	701,585
		───────	───────		───────	───────
EXPENDITURE ON
Charitable Activities	6	258,786	444,696		703,482	846,739
		───────	───────		───────	───────
TOTAL EXPENDITURE		258,786	444,696		703,482	846,739
		───────	───────		───────	───────
NET INCOME/(EXPENDITURE) BEFORE NET GAINS ON INVESTMENTS		2,406	(34,620)		(32,214)	(145,154)
		───────	───────		───────	───────
Net gains on investments	8	-	391,683		391,683	894,581
		───────	───────		───────	───────
NET INCOME		2,406	357,063		359,469	749,427
NET MOVEMENT IN FUNDS		2,406	357,063		359,469	749,427
Balance brought forward 1 January	12	257,887	5,659,000	5,916,887		5,167,460
		───────	───────		───────	───────
Balance carried forward 31 December	12	260,293	6,016,063	6,276,356		5,916,887
		═══════	═══════	═══════		═══════

The statement of financial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended are derived from continuing activities.

The notes on pages 21 to 34 form part of these financial statements.

							2019
							Restated
			Note	£	£	£	£
FIXED ASSETS
Tangible Assets			7		1		1
Investments			8		6,063,939		5,672,256
					───────		───────
					6,063,940		5,672,257
					───────		───────
CURRENT ASSETS
Debtors			9	382,243		387,293
Cash at Bank and in hand				211,966		177,986
Closed School Bank	Deposits		10	2,028,317		2,025,699
				─────		───────
				2,622,526		2,590,978
CREDITORS
Amounts falling due within one year			11	(2,410,110)		(2,346,348)
				─────		───────
NET CURRENT ASSETS					212,416		244,630
					───────		───────
TOTAL ASSETS LIABILITIES	LESS	CURRENT			6,276,356		5,916,887
					───────		───────
			12		6,276,356		5,916,887
					═══════		═══════
CAPITAL AND ACCUMULATED
FUNDS
Unrestricted funds					260,293		257,887
Restricted funds			12		6,016,063		5,659,000
					───────		───────
					6,276,356		5,916,887
					═══════		═══════

The notes on pages 21 to 34 form part of these financial statements.

Approved by the Board and signed on its behalf on 28th September 2021 by:

MARK DAVIES Bishop of Middleton – Chairman

DEBORAH SMITH Diocesan Director of Education and Company Secretary

t (expenditure) for the reporting period (as per the statement of ancial activities) idends, interest from investments crease / (Increase) in debtors rease / (Decrease) in creditors t cash (used in) operating activities sh flows from investing activities: idends and interest from investments t cash provided by investing activities sh flows from financing activities: t cash provided by financing activities ange in cash and cash equivalents in the reporting period sh and cash equivalents at the beginning of the reporting period sh and cash equivalents at the end of the reporting period	2020 £ (32,214) (197,070) 5,050 63,763 (160,471) 197,070 197,070 36,599 - - 36,599 2,203,685 2,240,284	2019 Restated £ (145,154) (191,443) 158,444 (534,282)
		(712,435)
		191,443
		191,443
		(520,992) - -
		(520,992) 2,724,677 2,203,685

Cash and cash equivalents includes both Cash at bank and in hand and Closed school bank deposits. See accounting policy 1(e) for an explanation of the closed school bank deposits.

The notes on pages 21 to 34 form part of these financial statements.

1. ACCOUNTING POLICIES

(a) Basis of accounting

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 (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102 2[nd] edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

(b)

Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income, other than interest arising from the sale proceeds of closed school sites, is included in incoming resources when receivable. Interest that is earned on the sale proceeds of closed school sites is recognised when the relevant sales proceeds are determined. Details of the sales proceeds and accumulated interest on sites awaiting determination are given in note 10 to the accounts.

(c)

Resources expended

Resources expended include all expenditure directly related to the objects of the charity (in accordance with SORP 2019) inclusive of any VAT, which cannot be recovered. Grants to schools are considered on the facts of each individual case dependent on the availability of funds at the time. Costs arising from the organisation and running of the charity rather than its charitable objects are shown as governance costs.

(d)

Uncapitalised fixed assets

School sites and buildings for the 191 Diocesan schools are included on the balance sheet at an aggregate nominal value of £1. Additions by the Manchester Diocesan Board of Education to the existing school sites and buildings are written off in the income and expenditure account in the year in which they are incurred. The Manchester Diocesan Board of Education hold the majority of sites only as Trustees for continuing education in the appropriate parish and the Board does not have an absolute title. Sale proceeds will only arise in the event of the Secretary of State for Education agreeing to the closure of a school. The accounting policy in relation to closed school sites is as stated below. In view of the above, it is considered prudent not to include valuations for existing school sites as Fixed Assets of this Board.

(e) Closed school sites

Sales proceeds of closed school sites and buildings attributable to the Manchester Diocesan Board of Education (once the correct legal destination of the proceeds has been resolved) are shown in the Statement of Financial Activities on page 18. Until such time as the Board has received the appropriate statutory approvals, proceeds are included in the balance sheet as a liability (note 10). Only a portion of the sales proceeds will accrue to the Manchester Diocesan Board of Education in due course and it is not possible to predict the value of such proceeds.

(f) Staff pensions

The Board of Education previously contributed to the Church of England Defined Benefits Scheme (DBS) for staff that is administered through the Manchester Diocesan Board of Finance. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme, which are attributable to the Board. Therefore, in accordance with FRS 102, payments to the scheme are accounted for as for defined contribution schemes and the Board accounts for pension costs based on contributions payable to the scheme in the year. Details of the scheme are given in note 18 to the accounts. The contributions due for the year are disclosed in note 15.

1. ACCOUNTING POLICIES (continued)

(g) Investments

Investments are shown at their bid value on the date of the balance sheet. Investments held by the Board as custodian trustee are not included in these accounts (see note 19).

(h) Agency arrangements (Maintenance Scheme Debtors and Creditors)

The charity acts as agent in the collection of grants from government, local authorities and other funds, and payment of approved invoices for school building projects on behalf of certain Church of England schools in the diocese. This income and expenditure is excluded from the income and expenditure of the charity and any balances due from or held on behalf of schools are shown within debtors and creditors.

(i) Fund accounting

Funds held by the company are either:

Restricted funds - Funds which may only be used for specific purposes imposed by the settler, donor or legislation.

Unrestricted funds - Funds which may be used for general purposes without any external restriction.

(j) Legal Status of the Trust – The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
(k) Investment in DBE Services - The MDBE owns 16.7% of the ordinary share capital of DBE Services Ltd and is included at cost. Any surplus share is accounted for in the year it is received.

(l) Judgements in applying accounting policies and key sources of estimation uncertainty - In preparing these financial statements the directors have made judgements where appropriate. There are no further material judgements.

(m) Going Concern - We have made an assessment of the Charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements were approved for release. In making our assessment, we considered the financial impact of Covid-19 on our cash flow forecast, performing stress testing of these plans. Having performed our assessment, we were able to conclude that the Charity is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern basis. In making our assessment we did not consider there to be any material uncertainty relating to events or conditions that individually or collectively may cast significant doubt on the Charity’s ability to continue as a going concern.

(n) Allocation of Support costs - As explained in the Annual Report, the MDBE supports Church of England schools in the diocese in a wide range of ways including assisting with building projects, supporting and training governors, and promoting religious education more widely. The allocation between activities fluctuates as necessary. In addition, the Board operates with a small staff and as a result does not consider that keeping formal records of the allocation of support costs between activities would provide significant useful information.

(o) Funds held as custodian trustee - MDBE holds, as Custodian Trustee, for a number of Parochial and school funds, investments and bank deposits, which are not included in the Balance Sheet. This includes monies from the Department for Education, which are held in individual accounts for schools for their building works. These investments are held on behalf of schools and parishes whose charitable purposes are similar to those of the DBE. These assets are held securely and separately from those of the Board that is responsible for their safe custody.

(p) Financial Instruments - Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). The company 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.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

COMPANY INCOMING RESOURCES – COMPRISING NOTES 2 – 5

		Unrestricted	Restricted	Total
		Funds	Funds	Funds
	Note	2020	2020	2020
		£	£	£
INCOME AND ENDOWMENTS FROM
Donations and legacies	2	46,491	140,004	186,495
Income from charitable activities	3	214,701	42,252	256,953
Other trading activities	4	-	30,750	30,750
Income from investments	5	-	197,070	197,070
		───────	───────	───────
TOTAL		261,192	410,076	671,268
		───────	───────	───────
		Unrestricted	Restricted	Total
		Funds	Funds	Funds
	Note	2019	2019	2019
		£	£	£
INCOME AND ENDOWMENTS FROM
Donations and legacies	2	40,887	140,000	180,887
Income from charitable activities	3	235,535	52,720	288,255
Other trading activities	4	-	41,000	41,000
Income from investments	5	-	191,443	191,443
		────────	────────	────────
TOTAL		276,422	425,163	701,585
		────────	────────	────────
2. DONATIONS AND LEGACIES
	Unrestricted	Restricted	Total		Total
	2020	2020	2020		2019
	£	£	£		£
Manchester Diocese Synod Funding	-	140,000	140,000		140,000
Sale of closed school sites	-	4		4	-
DBE Services Ltd	46,491	-	46,491		40,887
TOTAL	46,491	140,004	186,495		180,887

3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

	Unrestricted	Restricted	Total	Total
	2020	2020	2020	2019
	£	£	£	£
RE and other training income	207,368	17,687	225,055	262,187
Grants received	-	2,500	2,500	25,000
Pilgrimages income	-	250	250	370
Other income	7,333	21,815	29,148	698
	────────	────────	────────	────────
TOTAL	214,701	42,252	256,953	288,255

════════════════════════════════

4. OTHER TRADING ACTIVITIES

HER TRADING ACTIVITIES
	Unrestricted	Restricted	Total	Total
	2020	2020	2020	2019
	£	£	£	£
Rents received	-	30,750	30,750	41,000

════════════════════════════════

5. INVESTMENT INCOME

VESTMENT INCOME
	Unrestricted	Restricted	Total	Total
	2020	2020	2020	2019
	£	£	£	£
Income from investments
Unquoted	-	172,772	172,772	167,682
Stelfox Trust Income	-	23,938	23,938	22,585
Interest receivable
Bank and CBF interest	-	360	360	1,176
	────────	────────	────────	────────
TOTAL	-	197,070	197,070	191,443

════════════════════════════════

COMPANY EXPENDITURE – COMPRISING NOTE 6

	Unrestricted	Restricted	Total
	Funds	Funds	Fund
	2020	2020	2020
	£	£	£
EXPENDITURE ON
Charitable Activities	258,786	444,696	703,482
	───────	───────	───────
TOTAL	258,786	444,696	703,482
	───────	───────	───────
	Unrestricted	Restricted	Total
	Funds	Funds	Funds
	2019	2019	2019
	£	£	£
EXPENDITURE ON
Charitable Activities	336,500	510,239	846,739
	───────	───────	───────
TOTAL	336,500	510,239	846,739
	───────	───────	───────

6. CHARITABLE EXPENDITURE

		Unrestricted	Restricted	Total	Total
		2020	2020	2020	2019
		£	£	£	£
(a)	Grants(note 16)
	Building grants to schools	-	17,550	17,550	-
		────────	────────	────────	────────
	TOTAL	-	17,550	17,550	-
		────────	────────	────────	────────
(b)	Other expenditure
i.	to provide a service:
	Staff salaries, pensions and sub-contractors	154,668	309,728	464,396	460,594
ii.	for costs:
	Legal and professional services for school
	building and sites	-	-	-	-
iii.	Other overheads	99,342	113,180	212,522	379,039
iv.	Provision against doubtful debts	-	-	-	-
v.	Christian Leadership expenditure	-	-	-	-
vi	Audit Fees	4,777	4,237	9,014	7,106
		────────	────────	────────	────────
		258,786	427,146	685,932	846,739
		────────	────────	────────	────────
	TOTAL	258,786	444,696	703,482	846,739
		════════════════		════════════════
		Unrestricted	Restricted	Total
		2019	2019	2019
		£	£	£
(a)	Grants(note 16)
	Building grants to schools	-	-	-
		`────────`	`────────`	`────────`
	TOTAL	-	-	-
		`────────`	`────────`	`────────`
(b)	Other expenditure
i.	to provide a service:
	Staff salaries, pensions and sub-contractors	157,140	303,454	460,594
ii.	for costs:
	Legal and professional services for school
	building and sites	-	-	-
iii.	Other overheads	175,540	203,499	379,039
iv.	Provision against doubtful debts	-	-	-
v.	Christian Leadership expenditure	-	-	-
vi	Audit Fees	3,820	3,286	7,106
		`────────`	`────────`	`────────`
		336,500	510,239	846,739
		`────────`	`────────`	`────────`
	TOTAL	336,500	510,239	846,739
		`════════`	`════════`	`════════`

Support costs

Included within the above expenditure are the following support costs:

----- Start of picture text -----
||||| |---|---|---|---| |2020|2019| |£ £| |i.|Staff salaries, pensions and sub-contractors|162,099|158,101| |ii.|Legal and professional services for school| |building and sites|3,000|2,832| |iii.|Other overheads|53,579|68,953| |iv.|Provision against doubtful debts|-|-| |v.|Christian Leadership expenditure|-|-| |vi Audit Fees|9,014|7,106| |────────|────────| |TOTAL|227,692|236,992| |════════════════|

----- End of picture text -----

7. FREEHOLD AND LONG LEASEHOLD LAND AND BUILDINGS

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |School sites and buildings at nominal value|1|1| |════════════════|

----- End of picture text -----

Note that there were Capital Commitments authorised but not contracted for at 31 December 2020 of £nil (2019: £nil).

8. INVESTMENTS

VESTMENTS
		2020		2019
	Number	£	Number	£
CBF Investment Fund Shares
Shares at bid value brought forward	296,572	5,672,244	296,572	4,777,663
Disposal proceeds		-		-
Realised investment gains		-		-
Unrealised investment
gains		391,683		894,581
		-─────		───────
Bid value 31 December		6,063,927		5,672,244
		───────		───────
Number of shares at 31 December	296,572		296,572
	────────		────────
Historical cost at 31 December		(1,326,310)		(1,326,310)
		───────		───────
Excess of bid value over cost to date		4,737,617		4,345,934
		═══════		═══════
Investment in DBE Services Ltd		12		12
		───────		───────
Total		6,063,939		5,672,256
		═══════		═══════

In 2005 the company purchased twelve ordinary shares of £1 each (a 16.7% shareholding) in DBE Services Ltd. DBE Services Ltd was set up to provide services to schools. This company started to trade on 1 January 2006.

	2020	2019
	£	£
The trading activities were:
Turnover	1,810,213	1,780,980
Cost of Sales, administrative expenses and interest received	(1,565,187)	(1,515,792)
	────────	───────
Surplus	245,026	265,188
	════════	═══════
MDBE Share of Surplus (*)	46,491	40,887
	════════	═══════

The MDBE received fees for work done by its staff for DBE Services Ltd of £nil (2019: £nil).

The shares may not be disposed of or charged except in accordance with the provisions of the Shareholders’ Agreement.

Distributable profits attributable to the work done for relevant schools are to be distributed in the proportions to which they arise from the work done for the relevant schools for each shareholder and the remaining distributable profits shall be divided equally between the shareholders.

9. DEBTORS

BTORS
	2020	2019 Restated
	£	£
Maintenance scheme debtors	262,026	252,566
School selling expenses recoverable from future sale proceeds	31,635	9,707
Prepayments and accrued income falling due within one year	62,390	53,285
Grants awarded, not yet received	-	15,180
Other debtors	26,192	56,555
	────────	────────
TOTAL	382,243	387,293
	════════	════════

The maintenance scheme debtors arise out of the bills paid for building capital works on behalf of schools, but due to be recovered from DfE, LEAs or Schools themselves.

Grants awarded, not yet received arises from the ‘God and the Big Bang’ project grant funding from the Templeton World Charity Foundation.

10. CLOSED SCHOOL BANK DEPOSITS

OSED SCHOOL BANK DEPOSITS
	2020	2019
	£	£
Closed school account balances pending determination	2,024,120	2,021,504
Closed school account balances – MDBE Asset	4,197	4,195
	────────	────────
TOTAL	2,028,317	2,025,699
	════════	════════
Reconciliation of closed school balances:-
Capital proceeds	1,602,775	1,602,775
Accumulated interest	611,345	608,729
	────────	────────
Total creditor (note 11)	2,214,120	2,211,504
Less funds used for increased working capital	(190,000)	(190,000)
Add closed school account balances – MDBE Asset	4,197	4,195
	────────	────────
TOTAL	2,028,317	2,025,699
	════════	════════

The closed school balances have arisen primarily from the proceeds of former school sites, interest and investment gains thereon and their use is therefore restricted under S554 of the Education Act 1996.

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
	2020	2019 Restated
	£	£
Maintenance scheme creditors – school creditors	18,950	25,978
General creditors and accruals	105,517	90,188
The Manchester Diocesan Association Church Schools	(1)	1
Closed schools - monies held pending determination - (note 10):
Capital proceeds	1,602,775	1,602,775
Accumulated interest	611,345	608,729
Manchester Diocesan Board of Finance	71,024	18,566
Academies School Grant Committed	-	-
HMRC VAT	500	111
	────────	────────
TOTAL	2,410,110	2,346,348
	════════	════════

12. RESERVES

SERVES
		Incoming	Resources	Gains on
	1 Jan 20	resources	expended	investments	31 Dec 20
	£	£	£	£	£
Restricted funds
For Schools	5,659,000	270,076	(304,696)	391,683	6,016,063
From Synod	-	140,000	(140,000)	-	-
	────────	────────	────────	────────	────────
	5,659,000	410,076	(444,696)	391,683	6,016,063
Unrestricted funds
General	257,887	261,192	(258,786)	-	260,293
	────────	────────	────────	────────	────────
TOTAL	5,916,887	671,268	(703,482)	391,683	6,276,356
	════════	════════════════ ════════════════
		Incoming	Resources	Gains on
	1 Jan 19	resources	expended	investments	31 Dec 19
	£	£	£	£	£
Restricted funds
For Schools	4,849,495	285,163	(370,239)	894,581	5,659,000
From Synod	-	140,000	(140,000)	-	-
	────────	────────	────────	────────	────────
	4,829,495	425,163	(510,239)	894,581	5,659,000
Unrestricted funds
General	317,965	276,422	(336,500)	-	257,887
	────────	────────	────────	────────	────────
TOTAL	5,167,460	701,585	(846,739)	894,581	5,916,887

════════════════════════════════════════

Restricted funds

The restricted funds are held for the provision of support for schools, using the income generated for staffing and running costs, and capital and other grants. They have arisen primarily from the proceeds of former school sites, interest and investment gains thereon and their use is restricted under S554 of the Education Act 1996.

13. ANALYSIS OF 2020 NET ASSETS

13. ANALYSIS OF 2020 NET ASSETS
	Unrestricted	Restricted		Total
	2020	2020		2020
	£	£		£
Tangible assets and Investments	-	6,063,940		6,063,940
Net current assets	260,293	(47,877)		212,416
	────────	────────		────────
TOTAL	260,293	6,016,063		6,276,356
	════════ ════════════════
ANALYSIS OF 2019 NET ASSETS
Unrestricted	Unrestricted	Restricted		Total
	2019	2019		2019
	£	£		£
Tangible assets and Investments	-	5,672,257		5,672,257
Net current assets	257,887	(13,257)		244,630
Long term creditors	-	-		-
	────────	────────		────────
TOTAL	257,887	5,659,000		5,916,887
	════════ ════════════════
14. NET INCOMING RESOURCES
	2020			2019
This is stated after charging:	£			£
Auditors’ remuneration:
External audit	9,104			7,106
and after crediting:
Rental income	30,750			41,000
	══════			══════
15. STAFF COSTS
All staff are employees of MDBF and are recharged to MDBE. Amounts recharged were:
	2020			2019
	£			£
Salaries	361,008			360,697
Social security costs	30,289			32,905
Pension costs	73,099			66,992
	────────			────────
TOTAL	464,396			460,594
	════════		════════
The average weekly number of employees during the year was made up as follows:
Office and General Management employees	11			11
	════════		════════

Note that the Directors of the MDBE receive no remuneration or reimbursed expenses for their services as directors. There was 1 employee with total emoluments above £60,000 in 2020 (2019: 1 employee).

EMPLOYEE DETAILS

Employees receiving remuneration in excess of £60,000 are analysed as follows:

		2020	2019
		No.	No.
£60,000	- £70,000	-	1
£70,001	- £80,000	-	-
£80,001	- £90,000	-	-
£90,001	- £100,000	1	-
		2020	2019
		£	£
Pension	contributions to Pension Builder defined benefit scheme	14,940	9,854
		═══════	═══════

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 MDBE. During 2020 they were:

Deborah Smith – Director of Education and Company Secretary to the Board Ian Tomkin – Assistant Director of Education (Schools Estate & Finance)(Left 31[st] March 2020) Liam Eaglestone – Deputy Director of Education (Commenced 7[th] December 2020) Susie Mapledoram – Youth Officer

Karen Beal – Children’s Officer, Children’s Ministry Ruth Gent – Senior Administrator

Remuneration and pensions for these employees in the 6 posts (2019: 7 posts) amounted to £223,902 (2019: £260,241)

16. BUILDING GRANTS TO SCHOOLS
	2020	2020	2019	2019
	£	£	£	£
Reconciliation of building grants payable:
Commitments as at 1 January		-		-
Commitments made in the year	17,550		-
Grants reclaimed in the year	-		-
	───────		───────
Grants payable for the year		17,550		-
Grants paid during the year		-		-
		───────		───────
Building grant commitments at 31 December		17,550		-
		═══════		═══════

Grants, having been previously approved by the Finance & General Purpose Committee, are debited to the School Building fund at the time of approval.

There was one grant awarded in 2020 (2019: nil). All the grants were credited to schools in the Diocese of Manchester. A full list of individual grants is available on request from the Company Secretary at the Registered Office.

17. RELATED PARTY TRANSACTIONS

Manchester Diocesan Board of Finance

Manchester Diocesan Board of Finance is a Charitable Company limited by guarantee, situated at 90 Deansgate, Manchester, M3 2GH. The charity is connected to Manchester Diocesan Board of Education by virtue of the fact that Manchester Diocesan Synod has the power to appoint the majority of the Committee of Management, constituting the Board of Directors, for each charity.

For the year ended 31 December 2020, the Manchester Board of Finance (“MDBF”) made a budget transfer to the MDBE of £140,000 (2019: £140,000), representing the Synod funding of non-schools work of the Board of Education. Dividend income from the Stelfox Trust of £23,938 (2019: £22,585) was also paid to the MDBE via the MDBF. During the year MDBF incurred costs on behalf of, and subsequently recharged to, the MDBE costs of £506,396 (2019: £502,594) comprising:

£502,594) comprising:
	2020 2019
	£ £
Staff costs	464,396 460,594
Central services	42,000 42,000
	─────── ───────
Total	506,396 502,594
	══════════

Manchester Diocesan Church House Company

Manchester Diocesan Board of Education’s accommodation is provided by Manchester Diocesan Church House Company Ltd (which is a subsidiary of Manchester Diocesan Board of Finance) or a service charge of £13,333 (2019: £13,333), which is included in the Manchester Diocesan Board of Finance’s recharges.

DBE Services

MDBE owns 16.7% of the ordinary share capital of DBE Services Ltd, an entity which commenced trading on 1 January 2006. The company undertakes support work across six northern dioceses. During the year Manchester Diocesan Board of Education received donations totalling £46,491 (2019: £40,887). The Right Reverend Mark Davies served as a Director at DBE Services Limited during 2020.

Trustees

No Trustees (2019: Nil) were reimbursed for travel expenses during the year. During the year, there was £1,560 paid to one Trustee for advice to School Governing Bodies and in relation to projects (2019: £770 paid to one Trustee).

18. PENSIONS

As the staff are employed by the Manchester Diocesan Board of Finance and recharged to the Manchester Diocesan Board of Education, any pension surplus / deficit is included within the MDBF financial statements.

19. CUSTODIAN HOLDINGS

Manchester Diocesan Board of Education holds, as Custodian Trustee, for a number of Parochial and school funds, investments and bank deposits with an aggregate bid value of £4,885,633 (2019: £4,283,933), which are not included in the Balance Sheet. This includes monies from the Department for Education, which are held in individual accounts for schools for their building works. These investments are held on behalf of schools and parishes whose charitable purposes are similar to those of the MDBE. These assets are held securely and separately from those of the MDBE, which is responsible for their safe custody.

20. SCHOOL BUILDING & IT PROJECTS

The Manchester Diocesan Board of Education assists diocesan voluntary aided schools with the administration of funding for school building projects and the provision of IT equipment. The MDBE acts as the agent of school governing bodies in receiving funding from the Department for Education, local authorities and other funding sources and settling and matching it with the contractors' costs and professional fees. This activity of the MDBE is not reflected in the Statement of Financial Activities as the transactions are those of the school governing bodies rather than the MDBE. Total expenditure on school building projects and IT equipment during the year was £3,339,761 (2019: £6,067,928).

21. PRIOR YEAR ADJUSTMENT

During the period, management identified that they were historically coding issues relating to the maintenance scheme debtors and maintenance scheme creditors totalling to £253,631. There is no impact on funds as reported in the 2019 financial statements, following these adjustments.

	2019 Original Accounts	2019 Restated
aintenance Scheme Debtors	£506,197	£252,566

aintenance Scheme Creditors	£279,609	£25,978

CONTENTS

ORGANISATION AND ADMINISTRATION DETAILS

1. Principal Activity

2. Aims

1. Main objectives for the year

2. Strategies for achieving objectives

3. Grant making policies

Advice re school improvement and school place planning

Advice re school improvement and school place planning (cont)

Advice re religious education and collective worship

Advice to governing bodies

Support for leadership and management

Support for leadership and management (cont)

School buildings

Children’s work

Youth work

Youth work (cont)

Public benefit

Reserves policy

Going Concern

Investment policy

Taxation

Member Recruitment, Induction and Training

Appointed by Bishop

Co-opted Members

Manchester Archdeaconry

Rochdale Archdeaconry Clergy Lay Revd Rachel Damaris Battershell Mr Richard Lait Salford Archdeaconry: Clergy Lay Revd Karen Owen Mr Peter Wright

Financial management

Estates management

Human resources management

Support for changes to school organisation

Statutory inspection of Anglican and Methodist schools (SIAMS)

Support for CE school leadership and management

Related Parties

Higher education

Custodian trusteeship

CHARITY GOVERNANCE CODE

Organisational purpose

Leadership

Integrity

CHARITY GOVERNANCE CODE (cont)

Decision-making, risk and control

Board effectiveness

Diversity

Openness and accountability

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF MANCHESTER DIOCESAN BOARD OF EDUCATION

Opinion on the financial statements

Basis for opinion

Conclusions related to going concern

Other information

Other Companies Act 2006 reporting

Responsibilities of Trustees

Auditor’s responsibilities for the audit of the financial statements

Extent to which the audit was capable of detecting irregularities, including fraud

Use of our report

1. ACCOUNTING POLICIES

(a) Basis of accounting

(b)

Incoming resources

(c)

Resources expended

(d)

Uncapitalised fixed assets

(e) Closed school sites

(f) Staff pensions

1. ACCOUNTING POLICIES (continued)

(g) Investments

(h) Agency arrangements (Maintenance Scheme Debtors and Creditors)

(i) Fund accounting

(l) Judgements in applying accounting policies and key sources of estimation uncertainty - In preparing these financial statements the directors have made judgements where appropriate. There are no further material judgements.

COMPANY INCOMING RESOURCES – COMPRISING NOTES 2 – 5

3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

4. OTHER TRADING ACTIVITIES

5. INVESTMENT INCOME

COMPANY EXPENDITURE – COMPRISING NOTE 6

6. CHARITABLE EXPENDITURE

Support costs

7. FREEHOLD AND LONG LEASEHOLD LAND AND BUILDINGS

9. DEBTORS