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2021-12-31-accounts

MANCHESTER DIOCESAN BOARD OF EDUCATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Company No. 00618201– Registered Charity No. 530002

CONTENTS

Pages
Organisation and Administration details 1
Mission Statement and Vision 2
Legal Objects 2
Trustees’ Report 3-15
Mission Statement
Vision and Strategic Aims
Priorities for the year
Activities and achievements in the year
Aims and Objectives for 2022
Financial review
Structure and governance
Principal risks and uncertainties
Key management personnel
Trustees' Responsibilities Statement
Independent Auditor’s Report 16-18
Statement of Financial Activities 19
Balance Sheet 20
Cash Flow Statement 21
Notes to the Financial Statements 22-34

ORGANISATION AND ADMINISTRATION DETAILS

CHAIRMAN 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 Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
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.

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1. Principal Activity

The principal activity of the Manchester Diocesan Board of Education (“MDBE”) is to fulfil its statutory duties to:

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:

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

  1. 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.

  2. 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.

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The vision of the Diocese of Manchester is to be a worshipping, growing and transforming Christian presence at the heart of every community. Church schools are central to this vision as they seek to be places where Christian values and practices are at the centre of all that happens there. The Manchester Diocesan Board of Education (MDBE) fully supports this vision through its work with Church schools, across the diverse landscape of Greater Manchester and Rossendale.

The vision has three fundamental principles; growing, nurturing and serving, as we strive every day in our local ministry to be a Church for a Different World. MDBE works in partnership with 191 CE schools and diocesan churches to enact and support these principles.

Growing: MDBE grows and cultivates healthy relationships with staff and governors across the family of church schools. We encourage good leadership through providing training and advice in areas such as mental health and wellbeing, admissions, Head Teacher recruitment and development as well as effective management of school buildings.

Nurturing: MDBE strives to nurture its relationships with schools, just as we believe, God nurtures His relationships with His children. We support schools in the journeys they have with each of their children, from early years through to sixth form; walking alongside schools during transition points, academic experiences and community events. We work across churches and schools to establish reciprocally beneficial relationships. We communicate with school leaders, staff, governors and clergy teams, uniting us as we work together to lift up the children and young people in schools and churches.

Serving: MDBE seeks to serve schools with love, kindness and action, enacting the commandment to ‘Love the Lord your God with all your heart and with all your soul and with all your mind, and love your neighbour as yourself.’ (Luke 10:27). We work in communion with people, children and families from all faiths and backgrounds, celebrating the diverse landscape of our great city and region and the communities that come together within it. We help to maintain the Christian distinctiveness of Church of England schools through the facilitation of training and resourcing in the areas of vision and values, Religious Education, Collective Worship and the requirements of SIAMS.

MDBE’s overarching vision is for Church of England schools to be places where all involved in can be introduced and supported to reflect on Jesus’ promise in John 10:10 that He ‘came so that you might have life in all its’ fullness.’

Key Priority 1 : Ensure provision for children and young people is at the heart of the work within deaneries in order that:

Key Priority 2: Support schools in having a strong identity in terms of Christian vision and values so that:

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Key Priority 4: Equip and resource school governors to effectively fulfil their role as ex officio or foundation governor with CE schools so that:

Key Priority 5: MDBE processes and systems enable support for our work with schools so that:

Officers’ and staff individual performance objectives identify strategies to achieve the above priorities and are reviewed throughout the year.

Grant making policies

MDBE awards 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.

Ofsted and SIAMs inspections were restarted in September 2021 following a period of suspension due to Covid 19 restrictions.

4

Advice re religious education and collective worship

Advice to governing bodies

Support for leadership and management

5

Support for leadership and management (continued)

School buildings

DFC & None Grant Aided work cost £ 794,179.00
SCA work cost £3,893,606.68
Totalling £4,687,785.68
amongst others:
Saints Farnworth Roof
wich Parish Toilets
eorge Westhoughton Toilets
Matthew Little Lever Boiler
aviours Ringley Electrical
homas Westhoughton Roof
lmsley Parish Roof
artholomews Westhoughton Windows
manuel Holcombe External alterations
y St Stephen Fire Doors
ames Birch Toilets
aviour Collyhurst Kitchen
ist Church Chadderton DDA access
ton St Annes Boiler
gnes Lees Electrical
ilda Oldham Fire doors
ughs Holts Heating

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School buildings (continued)

ol buildings (continued)
st Crompton St James Roof
adderton St Lukes Heating pipe work
ton Hill St Martins Safeguarding
ton Hill St Martins Nursery
eenfield St Mary Roof
Matthew Chadderton Roof Phase 2
Paul's Royton Roof
Thomas Leesfield Boiler
esfield St Thomas Roof Phase 2
orside St Thomas Curtain wall
mer All Saints Drainage
ddleton Fire doors
lnrow Parish Fire upgrade
ywood St Margaret Stage and cellar
Michaels Alkrington Fire doors
whey St Thomas heating
whey St Thomas Roof
rist Church Eccles Refurbishment of circulation space/stairwells
dfey Ermen Boiler
Pauls Walkden Re roof
hton Holy Trinity kitchen
ssley St George Kitchen
veyhulme St Mary Roof
ton St Micheals Fire doors
nnington Christ Church Boiler
Marys Leigh Boundary Wall
Marys Leigh Security
ley St Stephen New office

Children’s work

Youth work

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Youth work (continued)

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 functions are to:

In addition, the MDBE supports work with children and youth in parishes and the Diocese as a whole, and supports chaplaincy provision in the three 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 2022, the MDBE will continue to meet its priorities in line with its vision ensuring fulfilment of statutory duties as set down in legislation as well as non-statutory duties as agreed by the Board.

With the publication of The White Paper for Education due in 2022 the further development of academy status is expected to continue to progress in 2022 and beyond. The MDBE will continue to promote its academies policy, review 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 also continue to enhance the support we provide for schools regarding upholding and developing the Christian distinctiveness.

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MDBE strategic priorities continue to be closely aligned with those of MDBF. For 2022 these will specifically focus on ensuring the further development of youth, children’s and chaplaincy work as part of MDBF’s Transformation agenda following the successful SDF bid in December 2021. This will result in recruitment for 9 new posts within the MDBE team taking place.

We will continue to work closely with DBE services regarding co-ordination of building projects within Diocesan schools. Alongside this we will promote the Total Property Management offer to MDBE schools.

Income from our SLA is projected to remain at least at its’ current rate with the likelihood of increased uptake following successful review and consultation period. Additional income may be generated by providing advice and administrative support for schools converting to academy status. We are also looking to increase income from offering a wider variety of training and enhanced support for schools 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 incoming resources of £362,107 (2020: net resources expended of £32,214) before net gains and losses on the revaluation of investments.

The level of restricted reserves at the year-end was £6.909,994 (2020 - £6,016,063) and of unrestricted reserves was £537,396 (2020 – £260,293). The MDBE has a policy to maintain at least three months’ revenue commitment as a working reserve. At the year-end unrestricted reserves were £537,396, or nine 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 surplus (before Investment gains) of £362,107 which includes the net expenditure in relation to God and the Big Bang for 2021 of £10,725 and also net expenditure from the Re-investment of Reserves of £10,345. The operating surplus excluding God and the Big bang and the Re-investment of Reserves is £383,202. There has been an unrealised gain on Investments of £808,927 making the company’s overall position a net surplus of £1,171,034.

The total Reserves on 31 December 2021 now stand at £6.910m (2020: £6.276m).

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.

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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 14.4% (2020: Increased by 6.9%). Dividends receivable amounted to £176,264 (2020: £172,724) – a yield of 2.56% (2020: 2.85%).

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

  1. The MDBE is governed by the Diocesan Boards of Education Measure 1991 and subsequent 2021 Measure, as amended by the Education and Inspections Act 2006 and the Manchester Diocesan Board of Education Order 2011.

  2. 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.

  3. The roles and responsibilities of Trustees are described and explained at the first meeting of a new board in a specific induction programme. In addition, further training of Trustees is arranged in relation to education policy development.

  4. 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.

  5. 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.

  6. The Director of Education published the statutory Annual Review and Report to Diocesan Synod in October 2021. This was presented by MDBE Chair as a result of the Director’s absence due to Covid 19.

The membership of the MDBE during the period from 1 January 2021 to the date of this report, unless otherwise stated, was as follows:

Chair:

Ex Officio: Company Secretary: Appointed by Bishop

Co-opted Members

Rt Revd M Davies, Bishop of Middleton Rt Revd D S Walker, Bishop of Manchester Deborah Smith The Rt Revd M Davies Mr H Williams OBE Vice Chair Ms K Morris (Resigned 26 March 2021) Revd P Williamson Revd M Cox Mr G Walczak

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Manchester Archdeaconry

Clergy

Revd Canon F Sher

Lay

Canon Dr Addy Lazz-Onyenobi

Bolton Archdeaconry

Clergy

Revd Canon Dr Chris Bracegirdle

Lay

Mr L Yarwood

Rochdale Archdeaconry

Clergy

Revd Rachel Damaris Battershell

Lay

Mr Richard Lait

Salford Archdeaconry:

Clergy

Revd Karen Owen

Lay

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

  1. To scrutinise the financial management of the Board, including budget setting, the approval of accounts and the monitoring of income and expenditure.

  2. To review, annually, the investment and reserves policies.

  3. To review, annually, the service level agreement (SLA) and maintenance contribution.

  4. To review, annually, the contribution of DBE Services to the Board.

Estates management

  1. To scrutinise financial assistance to schools, including review the policy annually and approve of grants and loans in accordance with the policy.

  2. To approve of the arrangements for the disposal of redundant school properties.

Human resources management

  1. 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

  1. Scrutinise the advice in relation to proposals to open/close/significantly enlarge a Church school and resolve any related matters.

  2. Scrutinise the advice given to church schools in relation to admission arrangements.

Statutory inspection of Anglican and Methodist schools (SIAMS)

  1. 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.

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Support for CE school leadership and management

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

  1. 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:

  2. The appointment of headteachers and deputy headteachers in church schools.

  3. 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.

  4. The appointment of governors to church schools and their training in the distinctive aspects of church schools.

  5. 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 ££6,737,455 (2020 - £4,885,633) 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.

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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.

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. It was ‘modernised’ through the Manchester DBE Order in August 2011 when membership numbers were reduced from a potential 32 to 12. Subcommittee 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 16 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. A risk register has been a standard agenda item at all MDBE meetings since 2008, with the main ones detailed below:

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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:

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.

So far as the Trustees are aware:

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: 11[th] August 2022

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Opinion

We have audited the financial statements of Manchester Diocesan Board of Education for the year ended 31 December 2021 which comprise the Statement of Financial Activities, Balance Sheet, Cashflow 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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have 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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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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:

Responsibilities of trustees for the financial statements

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006 and Charities Act 2011, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as income tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and concluded that the risk was low. Audit procedures performed by the engagement team included:

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.

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

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.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, statutory auditor 10 Queen Street Place, London, EC4R 1AG

Date: 08/09/2022

Haysmacintyre LLP is a limited liability partnership registered in England and Wales (with registered number OC423459).

18

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
Note £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and Legacies 2 365,349 140,000 505,349 186,495
Income from Charitable Activities 3 241,466 6,603 248,069 256,953
Other Trading Activities 4 - 41,000 41,000 30,750
Income from Investments 5 - 261,019 261,019 197,070
─────── ─────── ─────── ───────
TOTAL INCOME AND ENDOWMENTS 606,815 448,622 1,055,437 671,268
─────── ─────── ─────── ───────
EXPENDITURE ON
Charitable Activities 6 329,712 363,618 693,330 703,482
─────── ─────── ─────── ───────
TOTAL EXPENDITURE 329,712 363,618 693,330 703,482
─────── ─────── ─────── ───────
NET INCOME/(EXPENDITURE) BEFORE NET
GAINS ON INVESTMENTS 277,103 85,004 362,107 (32,214)
─────── ─────── ─────── ───────
Net gains on investments 8 - 808,927 808,927 391,683
─────── ─────── ─────── ───────
NET INCOME 277,103 893,931 1,171,034 359,469
NET MOVEMENT IN FUNDS 277,103 893,931 1,171,034 359,469
Balance brought forward 1 January 12 260,293 6,016,063 6,276,356 6,276,356
─────── ─────── ─────── ───────
Balance carried forward 31 December 12 537,396 6,909,994 7,447,390 6,276,356
═════ ═════ ═════ ═════

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.

19

2021 2021 2020 2020
Note £ £ £ £
FIXED ASSETS
Tangible Assets 7 1 1
Investments 8 6,434,748 6,063,939
─────── ───────
6,434,749 6,063,940
─────── ───────
CURRENT ASSETS
Debtors 9 151,253 382,243
Cash at Bank and in hand 1,166,400 211,966
Closed School Bank Deposits 10 1,018,434 2,028,317
───── ─────
2,336,087 2,622,526
CREDITORS
Amounts falling due within one year 11 (1,323,446) (2,410,110)
───── ───────
NET CURRENT ASSETS 1,012,641 212,416
─────── ───────
TOTAL
ASSETS
LIABILITIES		 LESS CURRENT 7,447,390 6,276,356
─────── ───────
12 7,447,390 6,276,356
═════ ═════
CAPITAL AND ACCUMULATED
FUNDS
Unrestricted funds 537,396 260,293
Restricted funds 12 6,909,994 6,016,063
─────── ───────
7,447,390 6,276,356
═════ ═════

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

Approved by the Board and signed on its behalf on 11[th] August 2022 by:

MARK DAVIES Bishop of Middleton – Chairman

DEBORAH SMITH

Diocesan Director of Education and Company Secretary

20

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
ceeds from sale of 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		 2021
£
362,107
(261,019)
230,990
(1,086,664)
(754,586)
261,019
438,117
699,136
(55,450)
-
-
(55,450)
2,240,284
2,184,834		 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

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.

21

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.

(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).

22

1. ACCOUNTING POLICIES (continued)

(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.

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.

23

COMPANY INCOMING RESOURCES – COMPRISING NOTES 2 – 5

2021 2021
Unrestricted Restricted 2021
Note Funds Funds Total Funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 365,349 140,000 505,349
Income from charitable activities 3 241,466 6,603 248,069
Other trading activities 4 - 41,000 41,000
Income from investments 5 - 261,019 261,019
─────── ─────── ───────
TOTAL 606,815 448,622 1,055,437
═════ ═════ ═════
2020 2020
Unrestricted Restricted 2020
Note Funds Funds Total Funds
£ £ £
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
═════ ═════ ═════
2. DONATIONS AND LEGACIES
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Manchester Diocese Synod Funding - 140,000 140,000 140,000
Sale of closed school sites 311,636 - 311,636 4
DBE Services Ltd 53,713 - 53,713 46,491
─────── ─────── ─────── ───────
TOTAL 365,349 140,000 505,349 186,495
═════ ═════ ═════ ═════

24

3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Administration Charges 8,583 - 8,583 -
RE and other training income 231,083 - 231,083 225,055
Grants received - - - 2,500
Pilgrimages income - - - 250
Other income 1,800 6,603 8,403 29,148
─────── ─────── ─────── ───────
TOTAL 241,466 6,603 248,069 256,953
═════ ═════ ═════ ═════
4. OTHER TRADING ACTIVITIES
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Rents received - 41,000 41,000 30,750
═════ ═════ ═════ ═════
5. INVESTMENT INCOME
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Income from investments
Unquoted - 174,650 174,650 172,772
Stelfox Trust Income - 24,315 24,315 23,938
Realised Gain on Investments - 61,882 61,882 -
Interest receivable
Bank and CBF interest - 172 172 360
─────── ─────── ─────── ───────
TOTAL - 261,019 261,019 197,070
═════ ═════ ═════ ═════

25

COMPANY EXPENDITURE – COMPRISING NOTE 6

2021 2021
Unrestricted Restricted 2021
Funds Funds Total Funds
£ £ £
EXPENDITURE ON
Charitable Activities 329,712 363,618 693,330
─────── ─────── ───────
TOTAL 329,712 363,618 693,330
═════ ═════ ═════
2020 2020
Unrestricted Restricted 2020
Funds Funds Total Funds
£ £ £
EXPENDITURE ON
Charitable Activities 258,786 444,696 703,482
─────── ─────── ───────
TOTAL 258,786 444,696 703,482
═════ ═════ ═════
6. CHARITABLE EXPENDITURE
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
(a) Grants(note 16)
Building grants to schools - 40,005 40,005 17,550
─────── ─────── ─────── ───────
- 40,005 40,005 17,550
─────── ─────── ─────── ───────
(b)
Other expenditure
_i._to provide a service:
Staff salaries, pensions and sub-
contractors 184,846 244,593 429,439 464,396
_ii._for costs:
Legal and professional services for school
building and sites 612 305 917 -
_iii._Other overheads 136,960 75,201 212,161 212,522
_iv._Provision against doubtful debts 1,076 419 1,495 -
_v._Christian Leadership expenditure - - - -
_vi._Audit Fees 6,218 3,095 9,313 9,014
─────── ─────── ─────── ───────
329,712 323,613 653,325 685,932
─────── ─────── ─────── ───────
TOTAL 329,712 363,618 693,330 703,482
═════ ═════ ═════ ═════

26

Unrestricted Restricted Total
2020 2020 2020
£ £ £
(a) Grants(note 16)
Building grants to schools - 17,550 17,550
─────── ─────── ───────
- 17,550 17,550
─────── ─────── ───────
(b)
Other expenditure
_i._to provide a service:
Staff salaries, pensions and sub-contractors 154,668 309,728 464,396
_ii._for costs:
Legal and professional services for school building and sites - - -
_iii._Other overheads 99,342 113,180 212,522
_iv._Provision against doubtful debts - - -
_v._Christian Leadership expenditure - - -
_vi._Audit Fees 4,776 4,238 9,014
─────── ─────── ───────
258,786 427,146 685,932
─────── ─────── ───────
TOTAL 258,786 444,696 703,482
═════ ═════ ═════
Support costs
Included within the above expenditure are the following support costs:
2021 2020
£ £
i. Staff salaries, pensions and sub-contractors 192,451 162,099
ii. Legal and professional services for school building and sites 6,671 3,000
iii. Other overheads 56,101 53,579
v. Christian Leadership expenditure - -
vi. Audit Fees 9,313 9,014
─────── ───────
TOTAL 264,536 227,692
═════ ═════
7. FREEHOLD AND LONG LEASEHOLD LAND AND BUILDINGS
2021 2020
£ £
School sites and buildings at nominal value 1 1
═════ ═════

Note that there were Capital Commitments authorised but not contracted for at 31 December 2021 of £nil (2020: £nil).

27

8. INVESTMENTS

2021 2020
Number £ Number £
CBF Investment Fund Shares
Shares at bid value brought forward 296,572 6,063,927 296,572 5,672,244
Disposal proceeds (21,427) (438,118) - -
Realised investment gains - -
Unrealised investment gains 808,927 391,683
─────── ───────
Bid value 31 December 6,434,736 6,063,927
─────── ───────
Number of shares at 31 December 275,145 296,572
─────── ───────
Historical cost at 31 December (888,193) (1,326,310)
─────── ───────
Excess of bid value over cost to date 5,546,543 4,737,617
═════ ═════
Investment in DBE Services Ltd 12 12
─────── ───────
TOTAL 6,434,748 6,063,939
═════ ═════

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.

2021 2020
£ £
The trading activities were:
Turnover 2,622,339 1,810,213
Cost of Sales, administrative expenses and interest received (2,136,381) (1,565,187)
─────── ───────
Surplus 485,958 245,026
═════ ═════
MDBE Share of Surplus (*) 53,713 46,491
═════ ═════

The MDBE received fees for work done by its staff for DBE Services Ltd of £nil (2020: £nil).

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

28

9. DEBTORS

2021 2020
£ £
Maintenance scheme debtors - 262,026
School selling expenses recoverable from future sale proceeds 69,654 31,635
Prepayments and accrued income falling due within one year 55,330 62,390
Grants awarded, not yet received - -
Other debtors 26,269 26,192
─────── ───────
TOTAL 151,253 382,243
═════ ═════

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

2021 2020
£ £
Closed school account balances pending determination 1,014,235 2,024,120
Closed school account balances – MDBE Asset 4,199 4,197
─────── ───────
TOTAL 1,018,434 2,028,317
═════ ═════
Reconciliation of closed school balances:-
Capital proceeds 702,649 1,602,775
Accumulated interest 501,586 611,345
─────── ───────
Total creditor (note 11) 1,204,235 2,214,120
Less funds used for increased working capital (190,000) (190,000)
Add closed school account balances – MDBE Asset 4,199 4,197
─────── ───────
TOTAL 1,018,434 2,028,317
═════ ═════

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.

29

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020
£ £
Maintenance scheme creditors – school creditors - 18,950
General creditors and accruals 80,265 105,517
The Manchester Diocesan Association Church Schools (1) (1)
Closed schools - monies held pending determination - (note 10):
Capital proceeds 702,649 1,602,775
Accumulated interest 501,586 611,345
Manchester Diocesan Board of Finance 38,946 71,024
Academies School Grant Committed - -
HMRC VAT 1 500
─────── ───────
TOTAL 1,323,446 2,410,110
═════ ═════
RESERVES
Incoming Resources Gains on
1 Jan 2021 resources expended investments 31 Dec 2021
£ £ £ £ £
Restricted funds
For Schools 6,016,063 308,622 (223,618) 808,927 6,909,994
From Synod - 140,000 (140,000) - -
─────── ─────── ─────── ─────── ───────
6,016,063 448,622 (363,618) 808,927 6,909,994
Unrestricted funds
General 260,293 606,815 (329,712) - 537,396
─────── ─────── ─────── ─────── ───────
TOTAL 6,276,356 1,055,437 (693,330) 808,927 7,447,390
═════ ═════ ═════ ═════ ═════
Incoming Resources Gains on
1 Jan 2020 resources expended investments 31 Dec 2020
£ £ £ £ £
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
═════ ═════ ═════ ═════ ═════

12. RESERVES

30

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.

Unrestricted Restricted Total
2021 2021 2021
ANALYSIS OF 2021 NET ASSETS £ £ £
Tangible assets and Investments - 6,434,748 6,434,748
Net current assets 537,396 475,246 1,012,642
─────── ─────── ───────
TOTAL 537,396 6,909,994 7,447,390
═════ ═════ ═════
Unrestricted Restricted Total
2020 2020 2020
ANALYSIS OF 2020 NET ASSETS £ £ £
- 6,063,940 6,063,940
260,293 (47,877) 212,416
─────── ─────── ───────
TOTAL 260,293 6,016,063 6,276,356
═════ ═════ ═════
13. NET INCOMING RESOURCES
2021 2020
£ £
This is stated after charging:
Auditors’ remuneration:
External audit 9,313 9,104
and after crediting:
Rental income 41,000 30,750
═════ ═════

14. STAFF COSTS

All staff are employees of MDBF and are recharged to MDBE. Amounts recharged were:

2021 2020
£ £
Salaries 332,460 361,008
Social security costs 33,356 30,289
Pension cost 63,623 73,099
─────── ───────
429,439 464,396
═════ ═════
The average weekly number of employees during the year was made up as follows:
Office and General Management employees 12 11
═════ ═════

31

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 2021 (2020: 1 employee).

EMPLOYEE DETAILS

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

2021 2020
No. No.
£60,000 - £70,000 - -
£70,001 - £80,000 - -
£80,001 - £90,000 - -
£90,001 - £100,000 1 1
2021 2020
£ £
Pension contributions to Pension Builder defined benefit scheme 13,056 14,940
═════ ═════

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 2021 they were:

Deborah Smith – Director of Education and Company Secretary to the Board

Liam Eaglestone – Deputy Director of Education

Susie Mapledoram – Youth Work Officer

Karen Beal – Children’s Officer, Children’s Ministry

Ruth Gent – Senior Admin & Governance Officer

Terry Hart - RE and Christian Distinctiveness Adviser

Remuneration and pensions for these employees in the 6 posts (2021: 6 posts) amounted to £271,795 (2020: £223,902)

15. BUILDING GRANTS TO SCHOOLS

2021 2021 2020 2020
£ £ £ £
Reconciliation of building grants payable:
Commitments as at 1 January - -
Commitments made in the year 40,005 17,550
Grants reclaimed in the year - -
─────── ───────
Grants payable for the year 40,005 17,550
Grants paid during the year (40,005) (17,550)
─────── ───────
Building grant commitments at 31 December - -
═════ ═════

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

32

There were 4 grants awarded in 2021 (2020: 1). 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.

16. 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 2021, the Manchester Board of Finance (“MDBF”) made a budget transfer to the MDBE of £140,000 (2020: £140,000), representing the Synod funding of non-schools work of the Board of Education. Dividend income from the Stelfox Trust of £24,311 (2020: £23,938) 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 £528,969 (2020: £506,396) comprising:

2021 2020
£ £
Staff costs 429,439 464,396
Central services 42,000 42,000
─────── ───────
Total 471,439 506,396
═════ ═════

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) for a service charge of £14,462 (2020: £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 £53,713 (2020: £46,491). The Right Reverend Mark Davies served as a Director at DBE Services Limited during 2021.

Trustees

No Trustees (2020: Nil) were reimbursed for travel expenses during the year. During the year, there was £520 paid to one Trustee for advice to School Governing Bodies and in relation to projects (2020: £1,560 paid to one Trustee).

17. 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.

33

18. 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 £6,737,455 (2020: £4,885,633), 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.

19. 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 £4,335,546 (2020: £3,339,761).

34