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Canterbury Diocesan Board of Finance Trustees’ Report and Financial Statements 31 December 2020 Company Limited by Guarantee Registration Number 00145650 (England and Wales) Charity Registration Number 249972 Contents Reports Reference and administrative information 1 - 2 Trustees' report (incorporating strategic report) 3 - 15 Independent auditor’s report 16 - 20 Financial statements Consolidated statement of financial activities 21 Consolidated summary income and expenditure account 22 Balance sheets 23 Consolidated statement of cash flows 24 Principal accounting policies 25 - 30 Notes to the financial statements 31 - 50 Appendices Comparative consolidated statement of financial activities 51 Comparative notes to the financial statements 52 - 55 Canterbury Diocesan Board of Finance Reference and administrative information Trustees Ex-Officio Trustees The Archbishop of Canterbury, The Most Revd and Rt Hon Justin Welby The Bishop of Dover, The Rt Revd Rose Hudson-Wilkin Mr Nigel Mansley, Chair The Dean of Canterbury Cathedral, The Very Revd Dr Robert Willis The Venerable Stephen Taylor, MBE The Archdeacon of Ashford, The Venerable Darren Miller The Archdeacon of Canterbury, The Venerable Joanne Kelly-Moore The Archdeacon of Maidstone, The Revd Venerable Andrew Sewell Mrs Jane Ashton Dr John Moss Mr Philip Sibbald The Revd Carol Smith Elected Trustees Miss Aimée Babbs Mrs Miranda Ford The Revd Estella Last The Revd Canon Stephen Lillicrap (appointed 1 February 2021) Lt Col (Retd) John Morrison The Revd Shiela Porter The Revd Michael Resch (resigned 9 December 2020) Acting Diocesan Secretary The Venerable Stephen Taylor, MBE Registered address Diocesan House Lady Wootton’s Green Canterbury Kent CT1 1NQ Company Registration No. 00145650 (England and Wales) Charity Registration No. 249972 Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers Lloyds Bank plc 49 High Street Canterbury Kent CT1 2SE Canterbury Diocesan Board of Finance Page 1 Reference and administrative information Solicitors Mowll & Mowll LLP Trafalgar House Gordon Road Whitfield Dover Kent CT16 3PN Canterbury Diocesan Board of Finance Page 2 Trustees’ report (incorporating the strategic report) Year ended 31 December 2020 The Trustees present their annual report (incorporating the strategic report for Companies Act purposes) together with the audited financial statements for the year ended 31 December 2020. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation. The financial statements have been prepared in accordance with the principal accounting policies set out on pages 25 to 30 of the attached financial statements and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). SUMMARY INFORMATION ABOUT THE STRUCTURE OF THE CHURCH OF ENGLAND The Church of England is organised as two provinces each led by an archbishop - Canterbury for the southern province and York for the northern. Each province comprises dioceses, of which there are 41 in England. Each diocese is divided into deaneries and each deanery into parishes; and each parish is overseen by a parish priest (usually called a vicar or rector). From ancient times through to today, they and their bishop are responsible for the “cure of souls” in their parish. Her Majesty the Queen, who is the Supreme Governor of the Church of England, appoints archbishops, bishops and deans of cathedrals on the advice of the Prime Minister. The Lords Spiritual, consisting of the two archbishops and 24 of the senior bishops sit in the House of Lords. The Church of England is episcopally-led; it is led by the Archbishops of Canterbury and York and there are a further 106 bishops including Diocesan Bishops and Suffragan Bishops. It is governed by General Synod as its legislative and deliberative body at national level, making decisions on matters of doctrine, the holding of church services and relations with other churches. General Synod passes measures which, if accepted by Parliament, have the effect of Acts of Parliament. Its members belong to one of three groups or houses: The House of Bishops, The House of Clergy and the House of Laity, and General Synod meets in London or York at least twice annually to consider matters for the broader good of the Church. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution Canterbury Diocesan Board of Finance (CDBF, the charity or the Board) was incorporated as a company on 29 December 1916 to manage the financial affairs of the diocese and to hold its assets. Every member of Diocesan Synod is a member of CDBF for company law purposes, and similarly Archbishop’s Council comprises the Trustees. The Board is a company limited by guarantee and as such has no share capital. The Board is a registered charity and its Trustees are the same people who serve as the Board of Directors for company law purposes. The Board together with its subsidiary entities comprises the ‘group’. The principal object of the charity and the group is to promote and assist the work of the Church of England for the advancement of the Christian faith in the Diocese of Canterbury. Method of appointment or election of Trustees The management of the charity and the group is the responsibility of the Trustees who are elected and co- opted under the terms of the Articles of Association. Canterbury Diocesan Board of Finance Page 3 Trustees’ report (incorporating the strategic report) Year ended 31 December 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Policies adopted for the induction and training of Trustees At the first meeting of the triennium, the current triennium being the period August 2018 to July 2021, time is set aside for the induction and training of new Trustees and further training is provided where necessary during the triennium to ensure that all Trustees are kept fully informed of their responsibilities. Diocesan officers are always on hand to advise Trustees on supplementary issues. Trustees’ remuneration The Trustees do not receive remuneration for their roles as trustees of the charity. The clergy members of the Board, as office holders within the diocese, receive housing and stipends as part of their clergy role. Organisational structure and decision making The Board, as Archbishop’s Council, is responsible for working with the Bishop of Dover to shape the diocesan strategy and to monitor the outworking of that strategy. It sets overall objectives and priorities. The outworking of those objectives and strategies for the Diocese of Canterbury is conducted through four overarching frameworks. The frameworks (see below under policies and objectives) meet frequently to plan their own priorities and make appropriate decisions in support of the overriding strategies and objectives of the Diocese of Canterbury. The principal officers manage the day-to-day administration in conjunction with Archbishop’s Council and respective frameworks as appropriate. The remaining staff assist in administration. Related party relationships CDBF makes contributions to the national Archbishops’ Council towards the running costs of the National Church. The stipends of all parish priests are paid initially by the Church Commissioners but these are then reimbursed by CDBF. The stipend of the Bishop of Dover together with the salaries of appropriate secretarial support are borne by the Church Commissioners and are not included in these statements. The Board considers that the following are subsidiary companies or connected charities: Subsidiary Companies: Canterbury Diocesan Enterprises Limited (CDEL) Diocesan Architectural Service Limited (DASL) Ethos School Improvement Limited (eSIL) Connected Charities: Together Kent The Diocese of Canterbury Academies Company Limited (DCACL) Canterbury Diocesan Board of Finance Page 4 Trustees’ report (incorporating the strategic report) Year ended 31 December 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Risk management The Trustees have assessed the major risks to which the charity and the group are exposed, in particular those related to the operations and finances of the charity and the group, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. The Trustees, through the Finance and Assets Committee, undertook a comprehensive review of the strategic, business and operational risks in 2020. In addition to the key challenges facing the charity because of the Covid-19 pandemic (see later in this report), the key risks facing the Board of Finance are: Non-payment of full Parish Share. The Trustees continue to pay careful attention to the Parish Share Scheme which determines the allocation of contributions needed from each parish to maintain the general fund. The Trustees also monitor on a regular basis the collection rate of contributions received from individual parishes, with a view to identifying at an early stage those parishes which are likely to have difficulties in meeting their Parish Share. The impact of Coronavirus had a significant impact on income in 2020 with reduction in Parish Share collected of £1m. This impact will continue into 2021 and action is in place to mitigate the impact in 2021 to ensure the financial viability of the diocese.
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