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Gloucester Diocesan Board of Finance Annual Report & Accounts 2014

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Gloucester Diocesan Board of Finance Annual Report & Accounts 2014 Gloucester Diocesan Board of Finance Annual Report & Accounts 2014 Contents board of directors Board of Directors and Principal Officers .....................................1 Rt Revd Michael Perham (President) retired 21 November 2014 Rt Revd Martyn Snow (Act’g President) Summary results..................................................................................2 Mary Adlard (Chair) Revd Craig Bishop Directors’ report .................................................................................3 Revd Nicholas Bromfield Canon Nigel Chetwood Strategic report ....................................................................................6 Revd Deborah Forman Anna Griffiths resigned 11 November 2014 Report of the auditors .................................................................... 11 Dr Steve Grindrod Very Revd Stephen Lake Accounting policies .......................................................................... 13 Anthony McFarlane Canon Ian Marsh Revd Canon Richard Mitchell Statement of financial activities ..................................................... 16 Revd Canon Mike Parsons Les Reilly Summary income & expenditure account................................... 17 Revd Jacqueline Rodwell resigned 24 October 2014 Henry Russell Statement of total recognised gains & losses ............................. 17 Ven Jackie Searle Revd David Smith Consolidated balance sheet ........................................................... 18 Graham W Smith Ven Robert Springett Michael Storey Parent balance sheet ........................................................................ 19 Prof Jennifer Tann Statement of cash flows .................................................................. 20 principal officers Benjamin Preece Smith – Secretary Notes to the accounts .................................................................... 21 Julie Ridgway – Head of Finance solicitor auditors Jos Moule; Diocesan Registrar haysmacintyre Veale Wasborough Vizards 26 Red Lion Square, Orchard Court, Orchard Lane London Bristol BS1 5WS WC1R 4AG bankers investment managers Barclays Bank plc CCLA Investment Management Ltd 288 Britannia Warehouse 80 Cheapside The Docks London EC2V 6DZ Gloucester GL1 2YJ registered office Company limited by guarantee Church House Registered number 162165 College Green Gloucester GL1 2LY Registered charity number 251234 1 How have we done? Highlights from this year’s accounts number of stipendiary clergy funded 2014: 2013: change: 126 129 -2% parish share contributions 2014: 3 2013: change: £5.9m £5.8m +2% general fund net outgoing resources (“loss”)*: 2014: 2013: change: £238k £794k -70% balance sheet value (nett assets) 2014: 2013 change: + % £75m £74m 1 *Excluding Good & Faithful Servant Ltd: 2014: £409k, 2013: 718k, change: -44% 2 Directors’ report for the year ended 31 December 2014 Structure, Governance and Management The Gloucester Diocesan Board of Finance (DBF) is a company limited by guarantee and a registered charity. Its governing instrument is the Memorandum and Articles of Association. Its membership comprises: The Bishop of Gloucester as president, ex-officio. Each and every member for the time being of the Diocesan Synod. Members co-opted to ensure that lay members constitute a majority of the DBF. Elections and co-options take place every three years. The current triennium runs until September 2015. The DBF, which meets four times each year, is the principal policy making body. It takes advice from its Board of Directors, constituted as the Bishop’s Council, which examines issues in detail and makes recommendations. The Council also take executive action in certain matters and deals with day to day issues. The membership of the Bishop’s Council is as follows: Ex-officio members: . The Bishop of Gloucester . The Chair of the DBF . The Bishop of Tewkesbury . The Dean of Gloucester . The Archdeacon of Gloucester . The Archdeacon of Cheltenham . The Chair of the House of Clergy of the Diocesan Synod . The Chair of the House of Laity of the Diocesan Synod . The Chair of the Diocesan Board of Education . A nominated representative of the Houses Committee . A nominated representative of the Diocesan Advisory Committee Members elected by the DBF – House of Clergy . Two clergy members of the DBF from the Archdeaconry of Gloucester . Two clergy members of the DBF from the Archdeaconry of Cheltenham . One Proctor in Convocation from among the members of General Synod Members elected by the DBF – House of Laity . Three lay members of the DBF from the Archdeaconry of Gloucester . Three lay members of the DBF from the Archdeaconry of Cheltenham . One lay member from among the members of General Synod Co-opted members . Up to two members may be co-opted by the Bishop’s Council Nominations . Up to two members may be nominated by the Bishop 3 Directors’ report for the year ended 31 December 2014 Structure, Governance and Management (continued) Trustees are recruited, as indicated above, through a mixture of ex-officio positions, elections and nominations. The Nominations Committee in conjunction with the Diocesan Secretary oversee membership elections. The DBF’s induction and training programme for trustees is being developed and will be ready for the start of the new triennium later this year. The DBF was assisted in its work during the year by a number of committees: . Finance Committee (Chair: Mary Adlard) acts in all matters relating to the management of the DBF’s finances, including setting policy, framing the budget, critically reviewing the budget to ensure value for money and monitoring financial performance; . Audit Committee (Chair: Bruce Evans) reports to the DBF on matters relating to the auditors, the annual accounts and internal controls. It also acts as the risk management group; . Glebe Committee (Chair: Timothy Griffin) acts in all matters relating to the management of glebe properties and the strategic conversion of glebe assets to maximise returns; . Houses Committee (Chair: Anthony McFarlane) discharges the responsibilities of the DBF in its capacity as the Diocesan Parsonages Board and acts in all matters relating to the provision and maintenance of clergy houses. The DBF is the financial custodian for the Diocese of Gloucester, which is an administrative and pastoral area within the Church of England. The DBF therefore has important relationships with the national institutions of the Church of England, specifically: . Archbishops’ Council, to which it pays grants based on an apportionment system for funding national training of ordinands and the activities of the various national boards and councils, as well as General Synod. Church Commissioners, from which the DBF receives grants and which acts for tax and national insurance purposes as the pseudo-employer of diocesan clergy. The DBF pays for clergy stipends through the Church Commissioners. Church of England Pensions Board, which provide pensions for clergy and DBF’s lay staff. Locally, the DBF works with Parochial Church Councils (PCCs) which are legally independent bodies that pay contributions, based on an apportionment system, to the DBF to fund its activities. The DBF is a tenant of the Dean and Chapter of Gloucester Cathedral, from whom it rents office accommodation. The DBF manages various charities on behalf of their respective trustees, for which grants and management charges are paid, namely the Voluntary Schools Fund (VSF) and the Charity of Ann Edwards (AEC). 4 Directors’ report for the year ended 31 December 2014 Objectives and Activities The principal objective of the Gloucester Diocesan Board of Finance (“the DBF”), as set out in the Memorandum of Association, is “to promote and assist the work, objects and purposes of the Church of England for the advancement of the Christian religion in the Diocese of Gloucester”. In pursuing this objective, the DBF acts as the financial executive of and employer for the Gloucester Diocesan Synod. As such it undertakes three principle activities: . It funds costs associated with the vast majority of Church of England clergy in the diocese, . It is responsible for the custody and management of the synod's funds. It provides services to other organizations within the diocese, primarily PCCs and schools. These specific activities are fulfilled within a broader strategic context for the Church of England within the diocese set out in the Diocesan Strategic Vision; Journeying Together which identifies four core areas of work. Worshipping together Offering facilities and services open to all in our communities is a core activity of the Church. The Board ensures that a professional, trained minister of religion is available to every community in our diocese to take and oversee public worship. The GDBF also supports and trains unpaid and lay ministry to undertake and support this work. Sharing our Christian faith and values The Board supports the sharing of the Christian faith not only through provision of theological training and ministers of religion but also through activities such as communication of the Christian faith through regional media, the provision of officers to support the teaching of the Christian faith in schools and wider training programme. Providing a visible presence in every community and parish The Board supports parish ministry through support of local parochial ministry, lay and ordained, and helping PCCs maintain and develop local church buildings through oversight of the care and maintenance of these buildings through the Faculty system,
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