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2022-12-31-accounts

MANCHESTER DIOCESAN BOARD OF EDUCATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Company No. 00618201– Registered Charity No. 530002

CONTENTS

Pages
Organisation and Administration details 1
Mission Statement and Vision 2
Legal Objects 2-3
Trustees’ Report 3-19
Independent Auditor’s Report 20-22
Statement of Financial Activities 23
Balance Sheet 24
Cash Flow Statement 25
Notes to the Financial Statements 26-41

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 14
REGISTERED OFFICE St John's House, 155-163 The Rock, Bury BL9 0ND
Telephone: 0161 828 1400
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 D M Myers LLB (Hons)
Diocesan Registry
St John House
155-163 The Rock
Bury
BL9 0ND
INVESTMENT ADVISORS CCLA Investment Management Ltd
One Angel Lane
London
EC4R 3AB
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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MISSION STATEMENT

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:

LEGAL OBJECTS

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

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Parliament for which the Diocesan Conference may appoint the Board to act.

  1. 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.

TRUSTEES’ REPORT

Vision and Strategy

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.’

Priorities for 2022 (progress during 2022 noted in italics)

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

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The ManDio Growing Faith Programme began in August 2022 using monies from Church Commissioners. A programme lead, an Early Years Adviser and 4 Deanery Workers have since been appointed. Working with the Area Deans and agreed Mission Communities they seek to further develop work with Children, young people and their families. There remain vacancies for deanery workers in 3 deaneries. Each post is committed to for 5 years.

Children Changing Places Project is now in year 4 out of 5. The project continues to meet its targets in terms of numbers of children and young people engaged in discipleship pathways.

Diocesan Children & Youth Officers continue to advise and support both the Children Changing Places Project and ManDio Growing Faith Programme as well as other parishes and Mission Communities across the Diocese in their work with children and young people.

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

Following a comprehensive consultation the Service Level Agreement (SLA) between schools and BOE was repurposed focusing on a covenant relationship. It highlights the Christian relational connection and inter-dependant nature of the Diocesan family of schools. 186/191 schools are actively engaged. Support for schools continued with the CPD offer being enlarged in response to specific need. Both the one and two day Mental Health and Wellbeing courses continued to be offered to schools. Schools due to be inspected under SIAMS in 2022-23 received a half day support visit from a Diocesan Schools Adviser with follow up visits/support from the RE and Christian Distinctiveness Officer as appropriate. All Head Teacher recruitment processes benefitted from a member of the Diocesan staff or a DSA supporting governors throughout the process. New Head Teachers received a visit from the Director, were invited to attend the new Head Teacher Evensong event at Manchester Cathedral and were encouraged to take part in the Diocesan Head Teacher induction process.

Key Priority 3: Support the diocesan net zero targets through working with schools to develop energy efficiency in order that:

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enable children and young people to drive the change to protect God’s creation.

MDBE continues to have representation as part of the Diocesan Environmental Group ensuring joined up thinking. The BOE commitment to fund carbon neutral work provides grants to schools to pay for a ‘Heat Decarbonisation Survey’ undertake on school buildings and developments. The CE centrally have produced an energy footprint tool for schools to use to accurately calculate their carbon footprint. All schools were encouraged to continue to use the energy footprint tool. A termly Eco Resource to support further thinking and developments was released to school leaders from January 2022. BOE’s asset management plan cited a commitment to supporting schools to become carbon neutral whilst acknowledging the complexities of this. The plan reflects BOE’s Environmental Policy, approved in March 2022. Young leaders from both primary and secondary schools also met to discuss the issue of the environment. The Planet Savers award was established and led by a group of young people. The awards were presented to schools at the beginning of 2023.

Continued partnering with DBE Services ensured School Condition Allowance funded projects in our VA schools include elements of carbon reduction in line with the Heat Decarbonisation Plans.

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

A review of DBE appointed Foundation governors took place with vacancies highlighted in February 2022. Recruitment of school governors continues to be a challenge nationally as well as within MDBE. Plans are afoot for a recruitment drive encouraging churches, parishes and Mission Communities to view being a school governor as both a vocation and calling. The role and influence it carries is directly linked to diocesan vision to see a Christian presence in all communities.

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

Angel Solutions Perspectives system has been adopted as our main schools database. It enables the sharing of reports, notes of visits, SIAMS reports as well as Ofsted updates, with all team and DSAs having access to it. Teams systems is used as a system for collaborative work across MDBE staff and Diocesan Schools Advisers. TEAMS has become the department’s preferred method of virtual communication and meetings, and Event Bright is used for all bookings for all events and training which will greatly streamline administration and finance tasks. Financial management systems were reviewed internally in collaboration with MDBF officers and more efficient processes established. Historical M code issues have now been fully resolved and monthly finance meetings take place to ensure any financial processing issues are addressed promptly.

Officers’ and staff individual performance objectives were agreed to achieve the above priorities and were reviewed throughout the year.

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Activities

School improvement

MDBE officers continued to meet with local authorities to identify and plan intervention/support in schools as appropriate. Six SIAMs inspections took place between January – December 2022. Five schools were awarded Good, including one where Religious Education was graded as Excellent. One school was awarded Excellent in all areas.

Between September to December 2022 nineteen Section 8 Ofsted inspections took place as well as fifteen Section 5 inspections. One school received Outstanding in all areas, twenty seven schools were awarded Good with six schools receiving a Requires Improvement judgement.

Eight self-employed Diocesan Schools Advisors were commissioned, on a sessional basis, to support school leadership and management as appropriate to need.

Religious education and collective worship

Training, advice and support across the school estate continued throughout 2022. Teacher development sessions were very well received with positive attendance. Secondary schools requested that the Introduction to Christianity course be delivered to cohorts of staff as they have larger numbers of new colleagues, we supported where capacity allows.

Visits to schools focussing on need, mainly in areas where an RE Hub had not been active. Other work included providing training sessions on the use of artefacts, Christian Distinctiveness and delivering INSET on Evaluating the Effectiveness of the School Vision, Mission & Values. As part of the ‘Love Thy Neighbour’ work, we collaborated with the Campaign Against Anti-Semitism and delivered training sessions to teachers welcomed the resource and the support offered. The resource was also launched to the neighbouring dioceses through the DBE RE Adviser’s network. A review of the resource by the Diocesan RE lead was published in RE Today, the National Association of Teachers of RE (NATRE) professional quarterly.

The Diocesan RE lead became part of the Northern Holocaust Education Group as a panel member to assess new holocaust educators and resources before they are released into schools. Links have also been made with the Manchester Jewish Museum exploring how more support can be given to our schools as they teach other faiths. This was a national need highlighted in the SIAMS Annual Review 21/22. To complement the training session on SEND & RE, a guidance document, ‘Sacred & Sensory’ was created and released. This document aimed to support teachers on the potential of reflection spaces to meet the sensory needs of pupils with SEND. In addition to the first eco resources, A further document providing guidance on Eco themed Collective Worship, ‘Let the Earth Rejoice’ was released as part of the 202 annual schools’ conference. Such documents were also released for wider use by surrounding dioceses and have been distributed through the RE Adviser’s regional network.

Church School Governance

Following the review of the Board’s policy for Foundation Governors we continued to approve Foundation Governor appointments. Advice and guidance was offered to schools seeking to revise their admissions policies and schools seeking to re-constitute their governing body/change their name. Bespoke advice, briefing and consultation regarding academy development was also provided for individual school governing bodies. Training opportunities were provided to governing bodies concerning upholding the Christian Distinctiveness of Church of England Schools. A comprehensive training and support package for Ex Officio governors and Foundation governors was delivered through virtual means. Sessions explored such areas as Foundation Governor induction, Distinctive Christian Governance, Ex Officio training and training for current and aspiring Chairs of Governance. Attendance remained high with positive feedback continuing to be received. June 2022 saw the second

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Annual Governor conference. This time it was delivered in partnership with Liverpool, York, Leeds, Blackburn and Carlisle Dioceses with the focus being on recruiting and developing diversity on Governing Bodies.

Also, during 2021-22 a network for Chairs of Governors was established with regular online meetings taking place. The Governance Officer continued to meet regularly with colleagues responsible for school governance within DBE Services as well as the national CE sector.

Support for leadership and management

Termly Head Teacher and Chairs of Governor support meetings continued to take place virtually. Attendance at these meetings continued to remain high with Head Teachers from across the Local Authorities within Manchester Diocese attending. New Head Teachers took part in induction sessions with MDBE officers and Board members, delivered virtually with a commissioning service for newly appointed Head Teachers taking place in October in Manchester Cathedral. Evensong Services for both new and retiring head Teachers took place at Manchester Cathedral.

MDBE supported Head Teacher recruitment processes in CE schools across the diocese, with successful recruitments being made. The Christian Leadership course ran with seven participants from Manchester Diocese taking part. A celebration service on completion was held in Blackburn Cathedral. The annual schools conference ‘Deeply Christian: Serving the Common Good’ was held in October 2022. Key note speakers included Dr Margaret James and Dr Ann Casson

School buildings

The BOE continued to support the management of the school estate following the principles of the DfE Good Estate management for Schools (https://www.gov.uk/guidance/good-estate-management-forschools/the-fundamentals-of-good-estate-management ). In the Manchester Diocese the school estate equates to 85+ Voluntary Aided schools and 100+ Voluntary Controlled, Foundation or Academies. During 2021-22 we further developed our relationship with DBE Services as they co-managed the School Condition Allowance (SCA) programme alongside officers of the BOE. During the year training continued to be delivered to VA schools regarding good estate management and the process of applying for SCA funding. Work towards applying the Board’s Environmental policy was actioned. Monies were released from Reserves and Investment funds in order to commission and pay for Carbon Neutral Surveys for all Diocesan schools.

2022-23 SAC Programme of works

Working with DBE Services and in liaison with our School Building Consultants, over 75 bids were assessed with 41 projects being approved. These are listed below in summery form at an overall cost of just over £5.4m. Several of the bids not approved for SCA use were approved with use of DFC. The vast majority of the approved projects are made up of condition work and the list is based on the priority of keeping schools warm, dry and safe.

We continued to work in partnership with DBE Services, who assist the Board of Education in the approval, monitoring, and sign off, of all SCA projects.

Bolton

M0030 Horwich Parish Replace heating pipe work ASHP for kitchen
M0055 St Matthew Little Lever Phase 2 (21/22) works to heating distribution
M0090 St Stephens All Martyrs Toilets
M0100 St Thomas Halliwell Roofing

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M0105 Walmsley Gas upgrade
Bury
M0120 Emmanuel Holcombe Structural repair
M0135 St Hilda Prestwich New doors, entry system safeguarding
M0155 St Pauls Bury Roof repairs and external and internal remodel
M0165 St Stephen’s Bury Safeguarding: Pedestrian and vehicle entrance
M0170 Bury High Safeguarding: Car parking etc.
Lancashire
M0175 St Anne’s Waterfoot Replace windows doors facias
Manchester
M0200 St James Birch Canopy of EYFS
M0205 St Mary Moston New windows doors single and double glazed
M0210 St Philips Hulme Roofing
Oldham
M0242 Holy Cross Roofing
M0250 St Anne’s Royton Corridor reroofing/thermal upgrade
M0255 St Agnes Lees Gas connection
M0255 St Agnes Lees New doors existing not compliant
M0260 St Hilda's Oldham Roof leaks
M0285 St Lukes Chadderton Mew consumer unit and mains
M0290 St Mararet’s Hollinwood Mezzanine floor
M0290 St Margaret’s Hollinwood New classroom
M0300 St Mary’s Greenfield New boiler
M0310 St Matthew’s Chadderton Heating system replacement
M0325 St Thomas Leesfield Kitchen ventilation
Rochdale
M0360 Middleton Parish Roofing
M0368 St John’s Thornham Roofing
M0375 St Michaels Alkrington Safeguarding: New perimeter fence
M0380 St Michael’s Bamford Roofing
M0385 St Thomas Newhay Roofing

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Salford

M0388 Christ Church Eccles Classroom
M0388 Christ Church Eccles Internal alterations
M0400 St Mark’s Worsley Electrical infrastructure
M0415 St Peter’s Swinton Roof works
Tameside
M0430 Canon Burrows Roofing
M0440 Holy Trinity Ashton Roofing
M0450 St Mary Droylsden Windows-replace single glazed
M0455 St Peter’s Ashton Replace oil fired boilers
M0460 St Stephen’s Audenshaw Muga and Forest school learning area
Wigan
M0510 St Michael’s Howe Bridge Repairs to Chimney, gable and other repairs
M0522 St Peter’s Leigh Int/Ext condition works

Children’s Work

Tailored training and support for ordinands, lay readers and parishes continued throughout 2022. It was a joy to deliver much of this in person once again.

The ALM Children’s Ministry elective 2021-22 was reviewed in order to reflect the priorities of the Diocese as a whole, and formed the basis of Diocesan wide training to which all were invited to. Fourteen candidates undertook the ALM or Lay Module pathway which is a record number. Churches continued to be supported through individual meetings, contacts and the continuing development of a Facebook page, Padlet pages and the existing Twitter account with resources and information. Such resources included those encouraging worship at home as well as those to enhance wellbeing. Support for employed workers continued through online and in person meetings and individual conversations. Support continued to be offered to the ‘Moving Up’ transition group in the Shaw plurality.

The Family Worship and Beyond fund established as a result of funding from the Board of Education’s Reserves and Investment Committee continued to accept applications at given points during the year and make awards as appropriate. Grants made totalled £5750 and varied from £250 - £750. Activities included the establishment of new mid-week worship including ‘Creative Church’ and ‘Outdoor Church’, supporting existing missional worship activities for early years family and a discretionary grant made to support children and young people with additional needs during worship.

The churches/parishes that received grants during the year were St Paul, Oldham, Atherton and Hindsford, Levenshulme, St Luke’s Heywood, Christ Church Pennington, Holcombe and Hawkshaw, St Andrew Hillock, St Lawrence Denton, St Andrew Radcliffe.

The Worship 2 Go collective worship resource was provided to schools throughout the first half of the academic year on a half-termly basis with ‘specials’ at certain times of the year such as church festivals. Year 6 Leavers’ services were held at Manchester Cathedral in June 2022.

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The Growing Faith Peer support Network for senior school staff , clergy and governors continued to be facilitated by the Children’s Officer from January to July 2022. Sessions included ‘Nurturing Ambition’, ‘Culture’ and ‘All things Eco’. The network was attended in total, by 18 different senior school staff, clergy and governors.

Primary Chaplaincy continued to progress with more interest being shown. Following the lead of a CE Multi-Academy Trust, the development of pupils as peer primary chaplains is continuing to further develop. An Authorised Lay Minister who undertook the Children’s Elective became a volunteer chaplain in two primary schools.

Support was offered to Rochdale Deanery as they developed a primary school pupil led, eco consultation group which will feed back to the deanery synod.

Regular contact with colleagues in other Northern dioceses was maintained and the Children’s Officer, as co-chair of the National Executive of Children and Youth Advisers navigated the network through some national church changes. The Children’s Officer stepped down from this role in July 2022.

Youth Work

Over 2022 we began to see youth work provision return to our churches and youth work projects, as groups and sessions begin again face to face. This has been a significant time of transition for churches who both continued their youth work online and for those whose are restarting their groups after little or no engagement during lockdown. The regular Youth Worker’s catch up and Live Youth Worker Conversations met, however, some training continued online. The Youth Officer continues to meet both face to face and online with employed workers around the diocese, with diocesan colleagues in the Northern Province and other youth work colleagues. Given the changing landscape of youth work in the diocese over the previous year, 2022 was an opportunity to help parishes rethink their work with young people, support appointments and advise on existing projects and proposals. The Youth Officer continued to sit on the Children Changing Places Board and during the spring and summer term offered a day a week in Canon Slade CE High School to support the chaplaincy there.

Over the summer of 2022 the Youth Officer was involved in running the Tampere/Manchester Confirmation Camp at Scargill House, where a group of 33 Finns joined us for the week, and was also part of the leadership team at the Middle Park Camp led by the youth work project, HAFWAY, who are based in Bolton and have links with many of our CE schools and parishes in that area.

During the course of 2022 the Youth Officer worked with the Children’s Officer and Deputy Director of Education in co-creating an Eco award with children and young people from some of our Church of England primary and secondary schools. This included a visit by the Young Christian Climate network to some of our schools and a day at Whalley Abbey designing and creating the award with a group of pupils. A lecture for 3rd year youth work students studying with South West Youth Ministries at Lee Abbey was also delivered.

Over 2022 we continued to offer both the One Day and Two Day Youth Mental Health First Aid training. We trained almost 200 people over the year and continue to offer out this important course next year, enjoying now the opportunity to now deliver these courses both online and face to face. In the next year we will look to offer these courses to schools directly to enable them to train up to 16 members of their school community at a time. In Spring 2022 the Youth Officer developed a new element to our mental health Renew resource suite in a Headteachers’ Mental Health Update. This contains resources, reflections and stories from schools around the diocese on this key area. In April 2022 the Youth Officer was invited to facilitate a day on mental wellbeing with a group of young people from across the Church of Ireland in Dublin. This is part of a 3 year project which seeks to hear the voices of young people around this important area and find ways for churches and communities to support them in being mental health advocates.

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Financial responsibilities

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 2021, 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, as well as supporting 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.

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 expenditure of £12,842 (2021: net resources income of £362,107) before net gains and losses on the revaluation of investments. The level of restricted reserves at the year-end was £6,062,195 (2021 - £6.909,994) and of unrestricted reserves was £618,235 (2021 – £537,396). The MDBE has a policy to maintain at least three months’ revenue commitment as a working reserve. At the year-end unrestricted reserves were £618,235, 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 deficit (before Investment gains) of £12,842 which includes the net expenditure in relation to Net Carbon Fund for 2022 of £175,500 and also net expenditure from the Special Projects of £16,782. The operating surplus excluding Net Carbon Fund and Special Projects

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Reserves is £179,439. There has been an unrealised loss on Investments of £754,118 making the company’s overall position a net deficit of £766,960. The Total Reserves on 31 December 2022 now stand at £6.680m (2021: £7.447m).

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 COVID19 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 decreased by 11.72% (2021: Increased by 14.4%). Dividends receivable amounted to £170,046 (2021: £176,264) – a yield of 2.99% (2021: 2.56%).

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.

Structure and Governance

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.

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  1. Members who serve on specific 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.

  2. 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.

  3. The Director of Education published the statutory Annual Review and Report to Diocesan Synod in November 2022. This was presented by the Acting Assistant Directors.

The membership of the MDBE during the period from 1 January 2022 to 31 August 2022 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 until August 31 2022
Co-opted Members: Revd P Williamson until August 31 2022
Revd M Cox until August 31 2022
Mr G Walczak until August 31 2022
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

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The membership of the MDBE during the period from 1 September 2022 to date of this report is 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
Vacancy
Co-opted Members: Mrs Karen Sudworth
Mr Gareth Ellswood
Mr Eliot Costa-Walker
Mrs Razia Shar (appointed 28 March 2022)
Manchester Archdeaconry
Clergy: Rev’d George Reeves
Lay: Canon Dr Addy Lazz-Onyenobi
Bolton Archdeaconry
Clergy: Revd Adele McKie
Lay: Mr L Yarwood
Rochdale Archdeaconry
Clergy: Revd Jenni Beaumont
Lay: Mr Richard Lait
Salford Archdeaconry:
Clergy: Revd Karen Hopwood-Owen
Lay: Mr Tim Delves

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The following Terms of Reference are agreed for the sub-committees of the Board:

Finance and General Purposes

Membership to include Chair/vice chair of BOE, 2 BOE members and 2 co-opted members

Meetings will be 3 times per year

To scrutinise the financial management of the board through:

To support human resource management through:

To support estate management through:

Schools Committee

Membership to include Chair of DBE, 2 BOE members and 2 co-opted members

Meetings will be 3 times per year

To promote church schools and receive advice on:

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The MDBE holds an Academies 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.

Academy Committee

Quorum of 3 members to include Chair/Vice Chair of BOE. Other 2 members will be either members of the BOE or Schools Committee

Meetings will be 3 times a year directly following BOE meetings. Further meetings will be arranged as necessary

To consider and resolve matters relating to:

Related Parties

Manchester Diocesan Board of Finance is a Charitable Company limited by guarantee, situated at St John’s House, 155-163 The Rock, Bury BL9 0ND. 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 Board of Finance, for which a rent is levied for use of building and services.

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 SubGroup (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 £5,309,191 (2021 - £6,737,455) 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:

16

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.

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 sub-Committee 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. 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 16 of the ‘Notes to the Accounts’.

Principle Risks and Uncertainties

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:

17

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 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.

Trustee Responsibility for Financial Management

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.

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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.

Disclosure of Information to the Auditors

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 20th June 2023 and signed on its behalf by

MARK DAVIES Director

Date: 20[th] June 2023

19

Independent Auditor’s Report to members of MANCHESTER DIOCESAN BOARD OF EDUCATION

Opinion on the financial statements

We have audited the financial statements of The Manchester Diocesan Board of Education for the year ended 31 December 2022 which comprise the Consolidated and Company Statements of Financial Activities, Consolidated and Company Balance Sheets, Consolidated 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).

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 group 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 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 group'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

20

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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).

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

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 group’s and the parent 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 group or the parent 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.

Based on our understanding of the charitable company and the environment in which it operates, we

21

identified that the principal risks of non-compliance with laws and regulations related to safeguarding vulnerable beneficiaries, health and safety, and employment (including taxation), 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 the Companies Act 2006, the Charities Act 2011, Church of England Measures and VAT law.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fund accounting, including transfers between funds, and revenue recognition. 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.

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

31 August 2023

22

STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure account) For the year ended 31 December 2022

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
Note £ £ £ £
INCOME AND ENDOWMENTS
FROM
Donations and Legacies 2 33,857 283,020 316,877 505,349
Income from Charitable Activities 3 253,481 - 253,481 248,069
Other Trading Activities 4 - 41,000 41,000 41,000
Income from Investments 5 - 198,713 198,713 261,019
─────── ─────── ─────── ───────
TOTAL INCOME AND
ENDOWMENTS		 287,338 522,733 810,071 1,055,437
─────── ─────── ─────── ───────
EXPENDITURE ON
Charitable Activities 6 206,499 616,414 822,913 693,330
─────── ─────── ─────── ───────
TOTAL EXPENDITURE 206,499 616,414 822,913 693,330
─────── ─────── ─────── ───────
NET INCOME/(EXPENDITURE)
BEFORE NET GAINS ON 80,839 (93,681) (12,842) 362,107
INVESTMENTS
─────── ─────── ─────── ───────
Net gain/(loss) on investments 8 - (754,118) (754,118) 808,927
─────── ─────── ─────── ───────
NET INCOME 80,839 (847,799) (766,960) 1,171,034
NET MOVEMENT IN FUNDS 80,839 (847,799) (766,960) 1,171,034
Balance brought forward 1
January		 12 & 13 537,396 6,909,994 7,447,390 6,276,356
─────── ─────── ─────── ───────
Balance carried forward 31
December		 12 & 13 618,235 6,062,195 6,680,430 7,447,390
═══════ ═══════ ═══════ ═══════

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 27 to 42 form part of these financial statements.

23

BALANCE SHEET

For the year ended 31 December 2022

2022 2022 2021 2021
Note £ £ £ £
FIXED ASSETS
Tangible Assets 7 1 1
Investments 8 5,680,630 6,434,748
─────── ───────
5,680,631 6,434,749
─────── ───────
CURRENT ASSETS
Debtors 9 171,579 151,253
Cash at Bank and in hand 1,241,467 1,166,400
Closed School Bank Deposits 10 1,020,649 1,018,434
─────── ───────
2,433,695 2,336,087
CREDITORS
Amounts falling due within one year 11 (1,433,896) (1,323,446)
─────── ───────
NET CURRENT ASSETS 999,799 1,012,641
─────── ───────
TOTAL ASSETS LESS CURRENT
LIABILITIES		 6,680,430 7,447,390
─────── ───────
12 & 13 6,680,430 7,447,390
═══════ ═══════
CAPITAL AND ACCUMULATED
FUNDS
Unrestricted funds 618,235 537,396
Restricted funds 6,062,195 6,909,994
─────── ───────
12 & 13 6,680,430 7,447,390
═══════ ═══════

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 27 to 42 form part of these financial statements.

Approved by the Board and signed on its behalf on 20[th] June 2023 by:

MARK DAVIES DEBORAH SMITH Bishop of Middleton – Chairman and Company Secretary

DEBORAH SMITH Diocesan Director of Education

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CASH FLOW STATEMENT
For the year ended 31 December 2022
Net (expenditure) for the reporting period (as per the
statement of financial activities)
Dividends, interest from investments
Decrease / (Increase) in debtors
Increase / (Decrease) in creditors
Net cash (used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Net cash provided by investing activities
Cash flows from financing activities:
Net cash provided by financing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period		 2022
£
(12,842)
(198,713)
(20,326)
110,450
(121,431)
198,713
-
198,713
77,282
-
-
77,282
2,184,834
2,262,116		 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

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 27 to 42 form part of these financial statements.

25

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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.

26

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

(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).

(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.

27

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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.

28

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

COMPANY INCOMING RESOURCES – COMPRISING NOTES 2 – 5

INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Income from charitable activities
3
Other trading activities
4
Income from investments
5
TOTAL
INCOME AND ENDOWMENTS FROM
Donations and legacies
Income from charitable activities
Other trading activities
Income from investments
TOTAL
2.DONATIONS AND LEGACIES
Unrestricted
2022
£
Manchester Diocese Synod
Funding
-
Sale of closed school sites
-
DBE Services Ltd
33,857
TOTAL
33,857		 2022
Unrestricted
Funds
2022
Restricted
Funds
£
£
33,857
283,020
253,481
-
-
41,000
-
198,713
───────
───────
287,338
522,733
───────
───────
2021
Unrestricted
Funds
2021
Restricted
Funds
£
£
2
365,349
140,000
3 241,466
6,603
4
-
41,000
5
-
261,019
───────
───────
606,815
448,622
───────
───────
Restricted
Total
2022
2022
£
£
140,000
140,000
143,020
143,020
-
33,857
283,020
316,877		 2022
Total
Funds
£
316,877
253,481
41,000
198,713
───────
810,071
───────
2021
Total
Funds
£
505,349
248,069
41,000
261,019
───────
1,055,437
───────
Total
2021
£
140,000
311,636
53,713
505,349

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted Restricted Unrestricted Restricted Total Total
2022 2022 2022 2021
£ £ £ £
Administration Charges - - - 8,583
RE and other training income 248,864 - 248,864 231,083
Grants received - - -
Other income 4,617 - 4,617 8,403
────── ───── ───── ─────
TOTAL 253,481 - 253,481 248,069
══════ ══════ ══════ ═════

4. OTHER TRADING ACTIVITIES

Unrestricted Restricted Unrestricted Restricted Total Total
2022 2022 2022 2021
£ £ £ £
Rents received - 41,000 41,000 41,000
═══════ ═══════ ═══════ ═════
5. INVESTMENT INCOME
Unrestricted Restricted Total Total
2022 2022 2022 2021
£ £ £ £
Income from investments
Unquoted - 170,046 170,046 174,650
Stelfox Trust Income - 25,049 25,049 24,315
Realised Gain on Investments - - - 61,882
Interest receivable
Bank and CBF interest - 3,618 3,618 172
────── ───── ───── ─────
TOTAL - 198,713 198,713 261,019
══════ ══════ ══════ ═════

30

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

COMPANY EXPENDITURE – COMPRISING NOTE 6

Unrestricted Restricted Total
Funds Funds
Fund
2022 2022 2022
£ £
£
EXPENDITURE ON
Charitable Activities 206,499 616,414 822,913
─────── ─────── ───────
TOTAL 206,499 616,414 822,913
─────── ─────── ───────
Unrestricted Restricted Total
Funds Funds Funds
2021 2021 2021
£ £ £
EXPENDITURE ON
Charitable Activities 329,712 363,618 693,330
─────── ─────── ───────
TOTAL 329,712 363,618 693,330
─────── ─────── ───────

31

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

6. CHARITABLE EXPENDITURE

Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted Total Total
2022 2022 2022 2021
£ £ £ £
(a) Grants(note 16)
Building grants to schools - 27,463 27,463 40,005
────── ───── ───── ─────
TOTAL - 27,463 27,463 40,005
────── ───── ───── ─────
(b) Other expenditure
i. to provide a service:
Staff salaries, pensions and sub-contractors 113,209 290,794 404,003 429,439
ii. for costs:
Legal and professional services for school
building and sites - 1,053 1,053 917
iii. Other overheads 88,693 290,980 379,673 212,161
iv. Provision against doubtful debts - - - 1,495
v. Christian Leadership expenditure - - - -
vi Audit Fees 4,597 6,124 10,721 9,313
────── ───── ───── ─────
206,499 588,951 795,450 653,325
────── ───── ───── ─────
TOTAL 206,499 616,414 822,913 693,330
══════ ══════ ══════ ═════

32

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted Total
2021 2021 2021
£ £ £
(a) Grants(note 16)
Building grants to schools - 40,005 40,005
────── ───── ─────
TOTAL - 40,005 40,005
────── ───── ─────
(b) Other expenditure
_i._to provide a service:
Staff salaries, pensions and sub-contractors 184,846 244,593 429,439
_ii._for costs:
Legal and professional services for school
building and sites 612 305 917
_iii._Other overheads 136,960 75,201 212,161
_iv._Provision against doubtful debts 1,076 419 1,495
_v._Christian Leadership expenditure - - -
vi Audit Fees 6,218 3,095 9,313
────── ───── ─────
329,712 323,613 653,325
────── ───── ─────
TOTAL 329,712 363,618 693,330
══════ ══════ ══════
Support costs
Included within the above expenditure are the following support costs:
2022 2021
£ £
_i._Staff salaries, pensions and sub-contractors 185,074 192,451
_ii._Legal and professional services for school
building and sites 4,200 6,671
_iii._Other overheads 42,441 56,101
_v._Christian Leadership expenditure - -
vi Audit Fees 10,721 9,313
────── ──────
TOTAL 242,436 264,536
══════ ══════

33

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

7. FREEHOLD AND LONG LEASEHOLD LAND AND BUILDINGS

2022 2021
£ £
School sites and buildings at nominal value 1 1
════════ ══════

Note that there were none capital commitments authorised but not contracted for at 31 December 2022 (2021: £nil).

8. INVESTMENTS

2022 2021
Number £ Number £
CBF Investment Fund Shares
Shares at bid value brought forward 275,145 6,434,736 296,572 6,063,927
Disposal proceeds - (21,427) (438,118)
Unrealised investment gains (754,118) 808,927
────── ───────
Bid value 31 December 5,680,618 6,434,736
────── ───────
Number of shares at 31 December 275,145 275,145
────── ──────
Historical cost at 31 December (888,193) (888,193)
─────── ───────
Excess of bid value over cost to date 4,792,425 5,546,543
═══════ ═══════
Investment in DBE Services Ltd 12 12
─────── ───────
Total 5,680,630 6,434,748
═══════ ═══════
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.
2022 2021
£ £
The trading activities were:
Turnover 2,812,941 2,622,339
Cost of Sales, administrative expenses and interest (2,387,841) (2,136,381)
──────── ───────
Surplus 425,100 485,958
════════ ═══════
MDBE Share of Surplus (*) 33,857 53,713
════════ ═══════

34

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

The MDBE received fees for work done by its staff for DBE Services Ltd of £nil (2021: £nil).

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

9. DEBTORS

2022 2021
£ £
Maintenance scheme debtors - -
School selling expenses recoverable
from future sale proceeds
 100,239 69,654
Prepayments and accrued income
falling due within one year 50,664 55,330
Other debtors 20,676 26,269
──────── ────────
TOTAL 171,579 151,253
════════ ════════
LOSED SCHOOL BANK DEPOSITS
2022 2021
£ £
Closed school account balances pending determination 1,016,441 1,014,235
Closed school account balances – MDBE Asset 4,208 4,199
─────── ────────
TOTAL 1,020,649 1,018,434
═══════ ════════
Reconciliation of closed school balances:-
Capital proceeds 702,649 702,649
Accumulated interest 503,792 501,586
──────── ────────
Total creditor (note 11) 1,206,441 1,204,235
Less funds used for increased working capital (190,000) (190,000)
Add closed school account balances – MDBE Asset 4,208 4,199
──────── ────────
TOTAL 1,020,649 1,018,434
════════ ════════

10. CLOSED SCHOOL BANK DEPOSITS

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.

35

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022 2021
£ £
Maintenance scheme creditors – school creditors - -
General creditors and accruals 189,049 80,265
The Manchester Diocesan Association Church Schools (1) (1)
Closed schools - monies held pending determination - (note 10):
Capital proceeds 702,649 702,649
Accumulated interest 503,792 501,586
Manchester Diocesan Board of Finance 38,407 38,946
HMRC VAT - 1
──────── ────────
TOTAL 1,433,896 1,323,446
════════ ════════

12. RESERVES

Incoming Resources (Losses) on
1 Jan 22 resources expended investments 31 Dec 22
£ £ £ £ £
Restricted funds
For Schools 6,909,994 382,733 (476,414) (754,118) 6,062,195
From Synod - 140,000 (140,000) - -
───── ─────── ─────── ─────── ─────
6,909,994 522,733 (616,414) (754,118) 6,062,195
Unrestricted funds
General 537,396 287,338 (206,499) - 618,235
─────── ─────── ────────── ─────── ───────
TOTAL 7,447,390 810,071 (822,913) (754,118) 6,680,430
════════ ════════ ══════════ ════════ ════════
Incoming Resources Gains on
1 Jan 21 resources expended investments 31 Dec 21
£ £ £ £ £
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
════════ ════════ ════════ ══════ ════════

36

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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 2022 NET ASSETS

Unrestricted Restricted Total
2022 2022 2022
£ £ £
Tangible assets and Investments -
5,680,631		 5,680,631
Net current assets 618,235 381,564 999,799
────────
───────		 ────────
TOTAL 618,235
6,062,195		 6,680,430
════════
═══════		 ════════
ANALYSIS OF 2021 NET ASSETS
Unrestricted Restricted Total
2021 2021 2021
£ £ £
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
════════
═══════		 ════════
14.NET INCOMING RESOURCES
2022 2021
This is stated after charging: £ £
Auditors’ remuneration:
External audit 10,721 9,313
and after crediting:
Rental income 41,000 41,000
══════ ══════

37

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

15. STAFF COSTS

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

2022 2021
£ £
Salaries 312,863 332,460
Social security costs 32,817 33,356
Pension costs 58,323 63,623
──────── ────────
TOTAL 404,003 429,439
════════ ════════
The average weekly number of employees during the year was made up as follows:
Office and General Management employees 10 12
════════ ════════

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 2022 (2021: 1 employee).

EMPLOYEE DETAILS

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

2022 2021
No. No.
£60,000 - £70,000 - -
£70,001 - £80,000 - -
£80,001 - £90,000 - -
£90,001 - £100,000 1 1
2022 2021
£ £
Pension contributions to Pension Builder
defined benefit scheme 13,152 13,056
═══════ ═══════

38

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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 2022 they were:

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

Liam Eaglestone – Deputy Director of Education (Resigned 8th August 2022)

Susie Mapledoram – Acting Assistant Director/Youth Work Officer (Promoted 1st August 2022)

Karen Beal – Children’s Officer (Transferred to DBF - 1st August 2022)

Ruth Gent – Senior Admin & Governance Officer

Terry Hart - Acting Assistant Director/RE and Christian Distinctiveness Adviser

(Promoted 1st August 2022)

Leona Brooks - Acting Capital Buildings Officer (Promoted 1st August 2022)

Remuneration and pensions for these employees in the 8 posts (2022: 6 posts) amounted to £312,074 (2021: £271,795)

16. BUILDING GRANTS TO SCHOOLS

2022 2022 2021 2021
£ £ £ £
Reconciliation of building grants
payable:
Commitments as at 1 January - -
Commitments made in the year 27,463 40,005
Grants reclaimed in the year - -
───── ─────
Grants payable for the year 27,463 40,005
Grants paid during the year - -
───── ─────
Building grant commitments at 31 27,463 40,005
December
═════ ═════

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

There were 1 grant was awarded in 2022 (2021: 4). 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.

39

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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 2022, the Manchester Board of Finance (“MDBF”) made a budget transfer to the MDBE of £140,000 (2021: £140,000), representing the Synod funding of non-schools work of the Board of Education. Dividend income from the Stelfox Trust of £25,049 (2021: £24,311 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 £539,728 (2021: £528,969) comprising:

2022 2021
£ £
Staff costs 404,003 429,439
Central services 135,725 99,530
───── ─────
Total 539,728 528,969
═════ ═════

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 £13,771 (2021: £14,462), 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 £33,857 (2021: £53,713). The Right Reverend Mark Davies served as a Director at DBE Services Limited during 2022.

Trustees

No Trustees (2021: Nil) were reimbursed for travel expenses during the year. During the year, there was £nil paid to Trustees for advice to School Governing Bodies and in relation to projects (2021: £520 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.

40

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022

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 £5,309,191 (2021: £6,737,455), 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 £6,928,995 (2021: £4,335,546).

41