Charity registration number 525790
Company registration number 85176 (England and Wales)
CHESTER DIOCESAN BOARD OF EDUCATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CHESTER DIOCESAN BOARD OF EDUCATION
LEGAL AND ADMINISTRATIVE INFORMATION
Members of the Board of Education
The Bishop's nominees: -
Ven Dr M Gilbertson
Mr D Hermitt
Members elected by Diocesan Synod: -
Revd L Bannon
Professor P Bowden
Mrs M Cruxton
Dr D Cumberland
Dr C Gordon
Mrs S C Hudson
Trustees
Ven Dr M Gilbertson (Chair)
Revd L Bannon
Mrs M Cruxton
Dr D Cumberland
Mrs S Hudson
Dr D Walter
Dr C Gordon
Mr P Gibbons (Co-opted)
(Appointed 31 January 2023)
Rev Dr J Arnott
(Appointed 31 January 2023)
Mr D Hermitt
(Appointed 31 January 2023)
Rev J Bridgeman (Co-opted)
(Appointed 31 January 2023)
Mrs C Speed (Co-opted)
(Appointed 31 January 2023)
Rev C Corley (Co-opted)
(Appointed 31 January 2023)
Secretary
Mr C Penn
Charity number
525790
Company number
85176
Registered office
Auditor
Bankers
Church House
Mitchell Charlesworth (Audit) Limited
National Westminster Bank plc
5500 Daresbury Park
24 Nicholas Street
33 Eastgate Street
Daresbury
Chester
Chester
Warrington
CH1 2AU
CH1 1LG
Cheshire
WA4 4GE
CHESTER DIOCESAN BOARD OF EDUCATION
CONTENTS
Page
Trustees' report
1 - 18
Independent auditor's report
19 - 22
Statement of financial activities
23
Balance sheet
24
Statement of cash flows
25
Notes to the financial statements
26 - 42
CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The trustees are pleased to present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association of 1943 amended on 24 April 2017, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity acts as the Education Authority for the Church of England in the Diocese of Chester, in accordance with The Diocesan Boards of Education Measure 2021. The objects of the charity are:

 

One of the principal activities is the administration of grant claims in respect of building and maintenance work carried out on school properties together with all other related matters which promote the efficiency of, or otherwise benefit, the schools in the Diocese. This administration has become a more central feature as the grant funding is paid directly to the DBE for distribution.

In addition, the charity has continued to provide assistance to Chester Diocesan Academies Trust (CDAT). It actively encourages schools considering academy status to join CDAT, it is developing its wider academy strategy which is to be launched in 2024.

The company also acts as custodian trustee for a number of specific trusts (referred to as Specific Purpose Funds in the attached accounts).

The strategies employed to achieve the charity’s objectives are to:

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

In order to track the success of these objectives, the DBE observes a number of performance indicators:

Performance

The Board’s vision is:

 

Being deeply Christian and for the common good, our schools will be communities which are: Loving in relationships; Ambitious in aspirations; Bold in actions.

 

DBE strategy and operational activities are influenced by this vision and are delivered across six key principles; relationships, outcomes, impact, resourcing, structures and trust.

Relationships

The Board has continued to support and develop its relationships with a number of organisations, primarily Diocesan schools, and has worked to strengthen these throughout the year through a number of activities.

 

A focus on headteacher and senior leadership wellbeing has been managed through a wellbeing programme for headteachers which is split into two cohorts, one for experienced headteachers and one for those in the early years of headship. Headteachers were encouraged to attend the programme and Chairs of governors to signpost their leaders to it. The programme runs throughout the academic year and so 2023 covered 4 cohorts. Training for governors was offered throughout the year to ensure governors were aware of their duties with regards to wellbeing. Individual pastoral support was the most impactful work undertaken by executive officers as they supported leaders who needed additional individual support for a number of differing reasons.

 

After reviewing the effectiveness and uptake of officer led headteacher cluster led meetings the decision was made to suspend these from September 2023. DBE officers continued to attend school led clusters inputting DBE information and supporting collaboration. Headteacher surgery and wider DBE briefings were planned into the CPD offer to engage schools across the Diocese.

 

Support for Chairs of governors had been identified as a priority in the previous year with a number of schools finding it a challenge to elect a Chair of their Board. Termly surgeries for Chairs continued to be offered to support them in their role and ensure that they were aware of DBE policies. These were well received, and some Chairs continue to meet separately in groups initially facilitated by the DBE, providing a supportive network.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

For staff in schools, a number of networks have provided support and helped develop relationships with staff beyond headteachers, for example, RE subject leaders, deputy/assistant headteachers, and collective worship leaders. A rich programme of CPD has been on offer to support leaders, staff, clergy and governors across the Diocese which has been well attended.

 

Support for the most vulnerable within the Diocese has continued to be a focus for the work of the Board through the Disadvantage group and SEND network alongside the Board’s involvement with external partners, including the Church of England Foundation for Educational Leadership (CEFEL) in supporting local peer support networks on Trauma Informed Practice. These have continued to impact practical work in schools to support these groups and also support the professionals as they develop their provision by sharing ideas and good practice.

 

The Board is involved in various partnerships working both across the region and nationally, including the Diocesan Directors of Education network, the Diocesan Governance Group (DGG), Diocesan Admission Group (DAG), RE advisers, North West Co-ordinators of Governor Services (NWCOGS), and CEFEL. These have ensured the DBE is kept informed of regional and national developments and also ensured the DBE has a voice and influence in these groups.

 

Collaboration with other Diocesan Boards of Education in the northern province has been positive over the year through DBE services and the sharing of good practice and resources on governance, RE, SIAMS, and other aspects of the Board’s work. The very successful Christian Leadership course finished and started another cohort in September with eight candidates from Chester starting.

 

The Board continued to work with its nine Local Authorities providing support for maintained schools and academies with regards to Ofsted and data outcomes, whilst maintaining its core purpose of supporting the distinctive nature of its church schools. A number of schools required closer collaboration with Diocesan Officers working together to provide support with regards to leadership and school improvement. The Board also has representation on Local Authority Children and Young People Scrutiny Committees and Standing Advisory Councils for Religious Education (SACRE).

 

In order to support relationships between schools for children and pupils, the Board has offered training for school ethos groups, encouraged schools to undertake the Archbishops’ Young Leaders Awards and supported school Vision ambassadors as well as bringing church school children together in the successful annual year six leavers’ service.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Outcomes

In addition to Ofsted inspections, Anglican church schools undergo a denominational inspection under the auspices of the Statutory Inspection of Anglican and Methodist Schools (SIAMS) (Section 48 of the Education Act 2005).

The charity continued to support schools before and after denominational inspection and these provide great benefit in further developing the Christian foundation of the schools as well as offering a means of pastoral support to senior leaders. Schools due for inspection were invited for specific training in order to prepare them for inspection as well as providing general training through the CPD programme. Between January and September, seven schools were inspected under the SIAMS schedule; six of these were judged to be good, one was judged to be excellent.

From September 2023 a new framework was implemented, this removed the gradings and replaced them with a detailed narrative of the strengths of the schools and areas of development followed by one of two phrases to summarise. These phrases are:

The inspection findings indicate that the school is living up to its foundation as a Church school, and is enabling pupils and adults to flourish.

Or

The inspection findings indicate that the school has strengths, but that there are also issues that leaders need to address as a matter of priority.

From September six schools were inspected and all were summarised as living up to their foundation as Church schools, and enabling pupils and adults to flourish.

As of the end of 2023, 100 schools were judged to be good or better under the Ofsted framework. Forty eight schools were inspected during 2023, much higher than in previous years and reflective of Ofsted’s desire to ensure that all schools are inspected post-pandemic at least once by July 2025. Three schools retained outstanding status, one moved from outstanding to good, twenty-nine remained good, five moved from Requires Improvement (RI) to Good. Seven moved from Good to Requires Improvement, two moved in to Special Measures from Requires Improvement and one Special Measures school was monitored and remained in Special Measures. A pattern emerged of schools improving from ‘RI’, having implemented robust curricula, as well as clearly focusing on impactful leadership. Schools that moved to ‘RI’ often had not moved as far or as quickly in these areas; those deemed Inadequate had not focused on impact of leadership or standards and sometimes had more serious areas for improvement, including safeguarding.

Following the publication of the SIAMS annual report, the Board has encouraged schools to look in particular at the need to develop opportunities for spiritual development and courageous advocacy. The aim was that by the end of the year more schools were able to articulate the language of spirituality and provide more opportunities for spiritual development for both children and adults. Schools should have also gained a greater understanding of courageous advocacy, in turn supporting children and young people to identify injustice and take action, thus impacting wider society. This work is ongoing with a number of schools taking the opportunity to host bespoke training on spirituality led by a Diocesan officer as well as attendance at a conference on this topic hosted by Liverpool Diocese. The Archbishop of York awards was regularly highlighted to schools and a number of schools have taken on the programme to support their courageous advocacy work.

 

The close working relationship between the Board and Chester Diocesan Academies Trust (CDAT) continued to develop throughout the year. In the previous year the Board had expressed its strong preference for diocesan schools to join CDAT. This has had a positive impact on the growth of CDAT with the Trust now being 14 schools strong and a number of schools waiting to join. Officers of the DBE have worked closely with officers of CDAT with both organisations working together to support schools across the Diocese, both in CDAT and LA maintained. The success of CDAT has meant that the DBE has had to review its academy strategy for the future and began work, in collaboration with CDAT, to look at the foundation of a second diocesan academy trust.

 

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Impact

In order to achieve the outcomes expected, the Board must ensure it has the required impact.

 

The Family of Schools offer is the main source of financial engagement with schools, in addition to attendance at training and events. The Board encouraged all schools to join the Family of Schools and attend training and events by providing appropriate resources and support as well as ensuring a programme of training and events that supported schools’ current priorities. The Board reviewed the offer before the start of the academic year and uplifted the charge slightly to cover costs, as well as charging for some additional aspects. A commitment was also made for each school to receive a visit from a DBE officer as part of this offer. Although time consuming, it has enabled the Board to have contact with each one of its schools through the visit as well as helping identify wider and more individual school challenges to help inform future planning. It has also resulted in the ability to link schools based on need and examples of good practice. To date one school did not buy back into the Family of Schools for financial reasons.

 

In addition to the CPD that is chargeable, the Board offered a wide variety of support that was not charged, including cluster groups, briefings, training for governors, support for voluntary aided schools with regards to capital work and general individual guidance and support. The Board publicises this support through various means including regular bulletins and social media. Schools have engaged well with these offers.

 

In order to encourage greater engagement and thus Board impact, the offer of meetings, briefing and training in a hybrid model of in-person and virtual allowed those from the extremes of the Diocese to attend without the need to travel. This has been well received with some schools preferring to take up the virtual offer and others preferring to attend in person; by offering both, the Board has been able to support a wider range of schools.

 

As highlighted in the SIAMS annual report, the headteacher has the greatest impact on the strength of a church school. Through the year the Board, as anticipated, was made aware of a number of recruitment opportunities to leadership positions. DBE Officers have supported the recruitment of strong church school leaders by guiding governing boards throughout the appointments process at both Headteacher and Deputy Headteacher level.

 

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

Resourcing

Following an extensive financial review in 2021, new centralised systems were implemented, resulting in an efficient cloud based financial recording and reporting system which has had a positive impact on officer workload and thus productivity. As this work has developed and become embedded, processes have become more efficient as work moves wholly to the cloud-based system and DBE Officers become more familiar with the software. There has also been the opportunity to make the experience more efficient for external partners through the introduction of an updated event booking system and the ability to pay for training online. This has also enabled the production of quarterly management accounts to the Board, and an increased level of scrutiny and review of the company finances.

 

Aided schools in the Diocese have continued to demonstrate their trust in the charity by having their Devolved Formula Capital (DFC) monies held centrally, enabling the Board to allow some schools to expend money which they will not receive until the following year.

 

Voluntary Aided schools must get DBE permission for capital work as well as fund 10% of the total grant-aided costs. In order to ensure transparency, the Devolved Formula Capital (DFC) and Schools Capital Allocation (SCA) monies were separated from DBE central funds and held in designated bank accounts. Some monies from CCLA investments were transferred to the general bank account to assist cash flow following this separation. To further manage cash flow governors are now required to pay their contribution up front and are no longer able to defer payments. This has been fully communicated to schools but some schools have still made applications to defer. As the expectation becomes embedded, there is the hope that schools no longer make such requests and plan applications with the appropriate finances available.

 

The SCA monies are paid directly to the DBE. The Board continues to ensure that projects are funded based on appropriate priorities of safeguarding and health and safety. A further focus has been achieving net zero carbon emissions by 2030. A working party has been created to look at strategies to achieve this, with the plan for pilot projects to take place throughout the following year. This has taken longer to implement than originally planned and so is an objective that is to be rolled into future years.

 

Many schools benefited from building work and the support of staff and consultants from DBE Services Ltd.

Projects with work over £100,000 included:

 

Completion of projects begun in 2022:

 

New projects in 2023:

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

Human resource is one of the main ways the Board hoped to achieve its objectives. By ensuring well trained and resourced school staff and governors the Board impacts outcomes for children within its schools. As identified earlier, good leadership recruitment is essential followed by induction and support. The Board’s CPD programme is designed to develop leaders from the start of their career on to leadership. An extensive ECT programme, designed to run alongside the national training, has been developed to ensure teaching professionals understand the distinctiveness of church schools and the impact they have. Training and support for middle and senior leaders has continued to be provided alongside that for governors and RE leads. The CPD offer remains a central focus for the Board and its impact.

 

The recruitment of foundation governors remains a challenge not just for the Board but nationally. The Board still expects foundation governors to be regular worshippers but will employ an alternative framework of appointment where circumstances require it. The Board has continued to work with local parishes and national bodies to both encourage involvement and recruit to schools. The recruitment of Academy Directors as well as to local governing boards following varied Articles has added complexity to the situation.

 

The Board’s central team of officers, supplemented by a small number of consultants, has continued to develop the Board’s offer and responded to national and local circumstances to ensure Diocesan schools are equipped and supported in all situations. As the Board’s academy strategy grows this will add a further workstream to the Board.

 

As Chester Diocesan Board of Education is an Incorporated Company which operates financially independently from Chester Diocesan Board of Finance, the DBE does not receive any income from local parish churches via the parish share scheme. The DBE is, therefore, responsible for sourcing its own income and, due to the financial strains on schools, relies heavily on income generated by investments, dividends and rental income from previous school sites. These income sources fund the majority of the DBE’s day to day activities to further its aims and charitable objectives, with income from Family of Schools membership and attendance at training courses and conferences supplementing this income. These resources are managed carefully by the Board to ensure efficiencies whilst still investing for impact.

Structures

The Board of Education reconstituted on the 1st January 2023 following the 2021 DBE Measure. The two committees were renamed from Finance and General Purposes and Education Effectiveness to Finance and Estates (F&E) and Distinctiveness, Standards and Governance (DSG) to better reflect the various aspects of their work. Updated terms of reference were also adopted.

 

The Board regularly reflected on its policies and practices throughout the year and has updated some practice around SCA grant approval and Risk Management to further develop oversight.

 

The Board has held senior officers to account for the offer and impact of the Board on its schools, Trustees and wider communities. It has challenged practice and ensured that financial oversight is rigorous.

 

The Board has continued to consider its role in the academy system through the academy working party and discussion at the main Board. The publication of new model academy articles and a Memorandum of Understanding has necessitated a review of the Board’s academy strategy which will impact school structures in the Diocese for the future. The academy strategy was carefully considered, initially by the Academy Working Party and then the Board with the purpose of ensuring each church school in the Diocese continues to fulfil its Trust deed through their governance structures. The Board also identified the need to develop an additional Diocesan Multi-Academy Trust (MAT) which will work alongside the current Diocesan MAT, Chester Diocesan Academies Trust (CDAT), to provide support for church schools as they move to academy status. This will be a major focus of the work of the Board for the following year as it supports its development and retains oversight of both CDAT and the second Diocesan MAT through its Members.

Trust

In order to achieve its aim regarding relationships, outcomes, impact, resourcing and structures, the Board must be trusted by all those linked to it. The Board has worked hard to ensure it is transparent, engaging and reflective and that it is both supportive and challenging to support the best outcomes for its schools.

 

Through its work the Board has continued to support its schools in being Loving in Relationships; Ambitious in Aspirations; and Bold in Actions.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Financial review

Reserves Policy

The charity is almost entirely dependent on the income from its investments to support its work. Consequently, investments are maintained, and the trustees would only consider expending capital in exceptional cases. Despite the continued volatility in national and world markets due to the pandemic and Brexit, the reserves have remained fairly stable.

 

The Restricted Funds arise out of the sale of school properties which in past years came under various Educational Endowment Orders and were amalgamated into a uniform statutory trust in 1995 following the provisions of the Education Act 1993. The use of these funds is restricted to the following:

a) funding the purchase, or erection of, improvement or enlargement of, relevant school premises in the area;

b) funding maintenance costs of any relevant school in the area;

c) funding the costs of the administration of the trust and the costs of providing advice, guidance and resources in connection with any matter related to the management of, or education provided at any relevant school in the area.

The Unrestricted General Funds held are historic funds and may be used for the general purposes of the Board in achieving its charitable objectives.

Free unrestricted reserves at the end of 2023 were £1,851,724 (2022 - £1,609,545), Total restricted reserves were £11,010,013 (2022 - £9,627,275). A detailed breakdown of restricted reserves, along with notes of the restrictions on these funds can be found in note 19 of these accounts.

The Board holds free reserves - restricted and unrestricted - of £12,861,737 at the end of 2023 (2022 - £11,236,820) and £1,178,638 (2022 - £1,178,638) of Endowment funds . Of this, £10,847,323 (2022 - £10,150,878) is held in investments in order to provide some capital appreciation and a flow of investment income. Of the investments, £1,512,296 (2022 - £1,381,617) are unrestricted, equivalent to over two years of expenditure. While the Board has no intention of liquidating these investments, it could do so with little difficulty. As such the Board considers it has adequate reserves to enable it to respond to changing church education needs and fluctuations in the economic environment.

The boards policy is to hold a minimum of twenty four months unrestricted expenditure within its unrestricted reserves, and the boards reserves adequately cover this. Restricted funds in relation to the SCA projects are held in line with the SCA funding received and required expenditure on projects as authorised, the restricted funds held adequately cover the future expenditure on the SCA projects.

It should be noted that these levels of reserves are partly historic and partly received through Act of Parliament; they are not hoarded donations.

The Finance and Estates Committee of the Board will continue to review levels of reserves and make their findings known to the Board of Trustees.

Financial Review, Reserves and Going Concern

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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

 

The Statement of Financial Activities shows net income of £711,723 (2022 - £79,058) and investment gains of £913,194 (2022 - £1,379,990 loss) together with a gain on revaluation of fixed assets of £nil (2022 - £318,228 loss) resulting in net movement in funds of £1,624,917 (2022 - £1,619,160 deficit).

The financial statements have been prepared on the going concern basis, as the trustees consider that the Board has sufficient reserves to continue operations.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -

Investment Policy and Outcome

 

To determine where the charity should invest its financial assets, the DBE follows the national Church of England’s Statement of Ethical Investment Policy, which states that taking account of environmental, social and governance (ESG) issues is an intrinsic part of being a good long-term investor, for both ethical and financial reasons.

 

To achieve this, the charity holds cash together with holdings in the Central Board of Finance (CBF) Church of England Investment Fund, the CBF Church of England Global Equity Income Fund, the CBF Church of England Property Fund, and the CBF Deposit Fund. The intention is to provide income together with capital appreciation to afford long term protection against inflation. The value, of investments has fluctuated over the year but as always, the DBE’s response to short-term investment fluctuations is to focus on the long-term viability of the investment portfolio of which it is confident. The Board has reviewed its investments and held discussions with CCLA to reassure itself that its monies are managed in an ethical and efficient way to ensure the long term viability of the Charity.

 

The CBF guarantee that investments are made in accordance with the ethical standards of the Church of England. The trustees will continue to regularly consider the performance of the shares to ensure that the return in terms of capital growth and income is appropriate to the long-term needs of the charity.

 

The Finance and Estates Committee will continue to keep investment policy and the investments themselves under review and keep the board of directors informed.

Risk management

The trustees have a risk management strategy which comprises:

 

 

Trustee indemnity insurance is in place.

 

The Board considers the main risks to be in the following areas:

 

 

Mitigation for these risks have been identified and continue to be monitored.

 

The Board, with local authorities, continues to support schools in facilitating discussion around school organisation and possible structures to manage school funds.

 

A key element in the management of financial risk is the work of the both committees considering the detailed risks and the Board understanding the high risks and the mitigations for them.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -

Remuneration of Key Management Personnel

 

As DBE employees are joint employees with Chester Diocesan Board of Finance, the salaries of key management personnel, as per all DBE employees, is set according to the Chester Diocesan Board of Education pay scale as determined by the HR Committee and the Finance and Scrutiny Committee of the DBF. Any pay increases determined outside of the DBF committees are proposed by the DBE Board and taken to the DBF committees for approval.

Supplier Payment Policy

The Company’s current policy concerning the payment of trade creditors is to follow the CBI’s Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London, WC1A 1DU).

 

The company’s current policy concerning payment of trade creditors is to:

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -

Plans for the future

‘Being deeply Christian and for the common good’,

 

The Board will support its schools to be communities which are: Loving in relationships; Ambitious in aspirations; Bold in actions in the following ways:

 

Relationships

The Board will continue to invest time into the relationships it has with various organisations, particularly its schools, and as the academy system develops, the academy trusts in which its schools sits. This will include the development of a second diocesan trust which will secure its relationships with the schools that will join it and the Board’s current diocesan trust, CDAT.

 

There will be a continued focus on wellbeing for school leaders through the wellbeing programme, governor training and individual support. In a time when pressures on school leaders are so great, there is a need to support them through both practical and pastoral activities and the Board will prioritise this through the year. School leaders manage the wellbeing of school children/students, staff and communities and so by supporting the wellbeing of leaders this should have a positive impact on those they support.

 

Chairs of governors in turn are a source of support for school leaders and do this in a voluntary capacity. Termly Chair of governor networks will continue to be held to provide information, answer questions and support networking. The Board will continue to support schools and local parishes as they look to recruit governors and the Board plans to enhance its relationships with its academy trusts as DBE appointees/recommendations are recruited to all levels of governance in them.

 

Networks for senior leaders, clergy, RE leaders and worship leads will continue to be supported by the Board. These will enable the Board to share information and understand the current needs of those involved in church schools. A rich programme of CPD will also be on offer to support leaders, staff and governors across the Diocese.

 

Support for the most vulnerable within the Diocese will continue to be a focus for the work of the Board through the Disadvantage group and SEND networks alongside the Board’s involvement with external partners, such as Church of England Foundation for Educational Leadership (CEFEL).

 

A particular focus in this and future years will be diversity. A network has been established to bring schools together to consider the understanding and definition of diversity and inclusion in the context of schools and to also raise the profile and integrate diversity and inclusions across all schools in the Diocese.

 

The Board will continue to work with a number of organisations and strategic partners, including the Department for Education and Ofsted to support its work and the work of others. Various partnership working is planned with CEFEL and officers will continue to be involved in a number of national and local networks.

 

Collaboration with other Diocesan Boards of Education in the northern province will continue through DBE Services and through the sharing of good practice and resources on governance, RE, SIAMS, and other aspects of the Board’s work. The very successful Christian Leadership course will run again through the year. A further piece of collaborative work taking place is around decarbonisation projects to support the net zero plan for the Diocese. The Board will work with DBE Services to bulk buy energy efficient bulbs and solar panels for its schools as well as supporting other innovations.

 

As the education landscape evolves the Board will support schools in managing the route to academy status. Officers will advise and support Governing Boards, liaise with academies and advise the Board on proposals. The Board is also fully committed to supporting the Diocesan MAT, Chester Diocesan Academies Trust (CDAT) as it grows as well as the development of a second Diocesan Trust to bring further options for church schools.

 

In order to support relationships between schools for children and pupils, the Board will ensure its offer of resources and events includes opportunities for children and pupils.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -

Outcomes

Following the change in the SIAMS inspection process the Board will continue to support schools in understanding the process and has the aim that all the schools inspected through the year will be judged as ‘Living up to its foundation as a church school’.

 

The Board had identified the need for schools to develop their understanding and language around spiritual development in the previous year and SIAMS outcomes has indicated that this is a continued area of need. Training has taken place throughout the year both at Diocesan and individual school level and this support will continue to be offered throughout the year to ensure that more schools are able to articulate the language of spirituality and provide more opportunities for spiritual development for both children and adults.

 

Working alongside Local Authority and academy colleagues, the Board will support schools with the aim that all schools receive at least a ‘Good’ judgement in their latest Ofsted inspection. The Board will provide guidance and support to schools that are due an Ofsted inspection; identify schools that may need additional support because of data or other aspects of concern and give additional support to schools that have not yet achieved a ‘Good’ Ofsted outcome. It will also support school leaders as they prepare for inspection, focusing on their wellbeing.

 

The Board will continue to signpost schools to appropriate resource and support, working in collaboration with LA and academy colleagues, in order raise outcomes for all children and young people. The expectation would be all diocesan schools have ambitious aspirations for all.

 

Impact

In order to achieve the outcomes expected the Board must ensure it has the required impact.

The Family of Schools offer is the main source of financial engagement with schools, in addition to attendance at training and events. The Board will encourage all schools to join the Family of Schools and attend training and events by providing appropriate resource and support and ensuring a programme of training and events that supports schools’ current priorities. This will be offered in a mixture of chargeable and non-chargeable events and also a hybrid of virtual and in person to encourage uptake.

 

Further work will be undertaken to develop online and recorded resources for schools that can be accessed at any time helping reach an even wider audience.

 

Through the year the Board expects there to be a number of recruitment opportunities in leadership positions. It will continue to support the recruitment of strong church school leaders by guiding governing boards throughout the process for both deputy and headteacher appointments.

 

Resourcing

In the previous year new centralised financial systems were implemented, resulting in an efficient cloud based financial recording and reporting system which has had a positive impact on officer workload and thus productivity. This has been further developed to support efficiencies and the Board will continue to monitor its impact and develop further resources as necessary.

 

Most Voluntary Aided schools are now aware that the governors’ contribution must be paid upfront and that the Board cannot fund deferred payments but it is not fully understood by all and so the Board will continue to ensure the message is repeated throughout the year.

 

The Boards work on achieving net zero carbon emissions by 2030 will continue to be a focus with a working party looking at ways to support schools in resourcing this decarbonisation work as well as working with DBE services on pilot projects. The decisions around SCA bids will also be influenced by this work.

 

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -

The Board in fulfilling its responsibility to offer guidance on denominational RE that meets the Church of England Statement of Entitlement for RE, has engaged with the process of researching, piloting and launching Questful RE throughout 2023. This is specifically for Voluntary Aided (VA) and previous VA schools who are required to teach denominational RE. However, extensive work has ensured that this quality resource has been made accessible to VA and previous VA schools with bespoke guidance on how it meets each local SACRE expectations. Further training will be put in place for 2024 to ensure schools plan a curriculum that is contextually appropriate using this resource and engage with effective use of the assessment system.

 

Human resource is one of the main ways the Board hopes to achieve its objectives. As identified earlier, good leadership recruitment is essential followed by induction and support. The Board’s CPD programme will continue to support staff in schools at each stage of their career to ensure an experienced staff that understand and can support and develop the Christian foundation of their school.

 

The recruitment of foundation governors continues to be a challenge not just for the Board but nationally. The Board will continue to work with local parishes and national bodies to both encourage involvement and recruit to schools and academy trusts.

 

The Board’s central team of officers, supplemented by a small number of consultants, will continue to develop the Board’s offer and will respond to national and local circumstances to ensure Diocesan schools are equipped and supported in all situations.

 

Structures

The Board will continue to provide appropriate support and challenge to its executive officers as they seek to fulfil the terms of the DBE measure and objects of the charity. This will be achieved through the work of its two committees and working parties as well as through the meeting of the full Board.

 

The Board will measure itself against the Good Governance Code and regularly reflect on its policy and practices.

 

The Board will further develop its role in the academy system and give further thought to how it develops its relationships with schools and academy trusts as the number of schools converting to academies increases. It will continue to ensure that, where Diocesan schools are included, academy structures will ensure each church school is fully living up to its foundation.

 

Trust

In order to achieve its aim regarding relationships, outcomes, impact, resourcing and structures, the Board must be trusted by all those linked to it. The Board will ensure it is transparent, engaging and reflective; both supportive and challenging to ensure the best outcomes for its schools.

 

The Board would hope to have all of its schools engaged with its work, at least at some level with a large number fully engaged across all aspects of its work.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -

Structure and governance

Chester Diocesan Board of Education is a registered charity no. 525790, and a company limited by guarantee no. 85176.

Governing Document

The Chester Diocesan Board of Education is a company limited by guarantee registered in England and Wales and governed by its Memorandum and Articles of Association amended on 1 January 2023. It is registered as a charity with the Charity Commission. The Board comprises:

 

(1) the Bishop;

(2) at least one but not more than two members appointed by the Bishop (“Bishop appointed Members”);

(3) at least seven but not more than eight members elected by the Diocesan Synod who are worshipping members of the Church of England but need not themselves be members of the Diocesan Synod (“elected Members”), of whom: (a) at least three members shall be elected from each of the two archdeaconries of the Diocese, being people who work, worship or reside in the archdeaconry from which they are appointed, and

(b) at least one member shall be a clerk in holy orders beneficed or licensed in the Diocese;

(4) at least two but not more than four members co-opted by the Board who shall be persons with experience of church schools in the Diocese (co-opted Members).

 

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ven Dr M Gilbertson (Chair)
Revd L Bannon
Professor P Bowden
(Resigned 4 March 2024)
Mrs M Cruxton
Dr D Cumberland
Mrs S Hudson
Dr D Walter
Dr C Gordon
Mr P Gibbons (Co-opted)
(Appointed 31 January 2023)
Rev Dr J Arnott
(Appointed 31 January 2023)
Mr D Hermitt
(Appointed 31 January 2023)
Rev J Bridgeman (Co-opted)
(Appointed 31 January 2023)
Mrs C Speed (Co-opted)
(Appointed 31 January 2023)
Rev C Corley (Co-opted)
(Appointed 31 January 2023)
CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -

Appointment of trustees

As set out in the Articles of Association, the Chair of the trustees is the Bishop of Chester except that, if they do not desire to be Chair, the members after consultation with the Bishop, shall appoint some other person (whether or not a member) to be Chair. The Ven Dr M R Gilbertson (Archdeacon of Chester) was appointed as Chair. As described in the Articles of Association, the members of the DBE are also the Trustees of the DBE.

 

When vacancies occur and at the end of the terms of office for Board members; the roles are advertised across the Diocese and applications invited. This is to support both the fulfilment of equality objectives and to encourage a wide range of backgrounds and experience on the Board.

 

All board members, trustees and committee members are voluntary roles; the DBE does not use volunteers beyond these roles.

 

The main Board is supported in undertaking more detailed scrutiny through two committees, Finance and Estates (F and E) and Distinctiveness, Standards and Governance (DSG). These are made up of members of the Board with additional co-opted members. Two working parties have also been established on academisation and Decarbonisation, made up of Board members and additional persons invited to attend because of their experience.

 

Trustee induction and training

New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees also meet key employees and are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

 

Trustees’ statement on public benefit

Chester Diocesan Board of Education is a public benefit entity. The trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

 

In accordance with the company objectives as set out in the Diocesan Board of Education Measure 2021, the Board of Education exists:

The public benefit of our work is seen in the support and flourishing of church schools that provide education for all within a Christian ethos. The Board of Education also supports schools in developing links with their local communities to improve and unify these communities. Our support for schools also ensures the provision of buildings which can be used by parishes and outside bodies for the benefit of all.

 

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
Qualifying third party indemnity provisions

Charity Governance Code

The Board follows the Charity Governance Code and continues to review best practice as it aims to continually improve. The Board manages effective governance of the charity in the following ways:

 

Organisational Purpose – The Board ensures its work is in line with its charitable objectives and also its vision of being deeply Christian and for the common good; and that its schools will be communities which are loving in relationships, ambitious in aspiration and bold in action. This vision continues to be developed and is used as a basis for the work of the Board and its officers. The wider diocesan vision is currently being implemented and will impact further development of the Board of Education vision.

 

Leadership – Two committees give a strong oversight of the work of the DBE, through detailed scrutiny and recommendations to the Board. Additional working parties help challenge and support executive officers as they support the development of DBE strategy in areas such as academisation and decarbonisation.

 

Integrity - The Bishop of Chester nominates the chair of the DBE to ensure the Board operates within the vision and values of the Diocese of Chester and the Church of England. The majority of the Board is appointed by Diocesan Synod to ensure the Board is independent in its decision making. A small number of members are co-opted based on the skills that they offer. Committees also have spaces for co-opted members which help bring a further perspective to its work. The Board is required to report back to the Diocesan Synod to share its progress in furthering its purposes.

 

Decision Making, Risk and Control - The risk register is regularly updated to ensure the Board is aware of, and managing its current risks. Each committee identifies risks and possible mitigation. These are then brought to the full Board. The Distinctiveness, Standards and Governance and Finance and Estates committees continue to support the Board in taking control of, and responsibility for, the decision-making process of the charity.

 

Board Effectiveness - Board directors bring a wide and diverse range of skills to The Board and continually monitor the work of the DBE and its executive officers; scrutinising operational activities through reporting processes and review of actions. Financial scrutiny and decision making is managed through clear financial policies and procedures.

Diversity - The Board of directors is appointed by the Diocesan Synod and, as far as possible, members are nominated to include a wide range of knowledge, skills and perspectives. When vacancies occur, or at the end of the term for the Board, the roles are advertised across the Diocese in order to encourage this breadth. However, the DBE intends to take a more proactive approach to encourage applications for appointment from a more diverse group, in particular with regards to age, gender and ethnicity. The DBE is committed to widening its diversity as it moves forward.

 

Openness and Accountability - The charity is accountable to and makes regular reports to Diocesan Synod and various other Diocesan committees to ensure that the Board is transparent in how it operates.

 

Organisation

The Board of trustees administers the charity. The Board meets regularly together with the Secretary (the Diocesan Director of Education) who manages the day to day operations of the charity. The Board manages its business through its two committees, Finance and Estates and Distinctiveness, Standards and Governance. These are attended by members of the executive team. To facilitate effective operations, the Secretary has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and school related activities.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -

Related parties

The charity has a close relationship with Chester Diocesan Board of Finance (a company limited by guarantee registered in England (no. 7826) and a registered charity (no. 248968) which provides office accommodation and payroll.

 

The charity has a close relationship with Chester Diocesan Academies Trust (CDAT) (a company limited by guarantee registered in England (no. 8451787) and an exempt charity) which is established as a multi-academy trust in the Diocese.

 

The charity jointly owns DBE Services Ltd (a company limited by shares registered in England and Wales (no. 5531123) with Blackburn Diocesan Board of Education, Carlisle Diocesan Board of Finance, Liverpool Diocesan Board of Finance, Manchester Diocesan Board of Education and York Diocesan Board of Finance. This company undertakes support work across the six dioceses and gift-aids any profit back to the six Boards.

Funds held as custodian trustee

The charity acts as custodian trustee in respect of funds held on behalf of local trustees and such specific purpose funds are held in segregated accounts, separately accounted for, and do not appear in the financial statements. They are shown in note 22 to the accounts.

 

The company also acts as custodian trustee in respect of funds arising out of the sale of school properties where the funds are held pending the issue of an Order or other determination.

The Devolved Formula Capital for aided schools is held by the charity as part of these funds.

Statement of trustees' responsibilities

The trustees, who are also the directors of Chester Diocesan Board of Education for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which 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 charitable company for that year.

 

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

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that 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.

Auditor

In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at a General Meeting.

CHESTER DIOCESAN BOARD OF EDUCATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Ven Dr M Gilbertson (Chair)
Chair
16 June 2024
CHESTER DIOCESAN BOARD OF EDUCATION
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION
- 19 -

Opinion

We have audited the financial statements of Chester Diocesan Board of Education (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

CHESTER DIOCESAN BOARD OF EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION
- 20 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

CHESTER DIOCESAN BOARD OF EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION
- 21 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

 

 

 

 

 

 

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition (iii) the overstatement of salary and other costs and the movements for the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, the Statement of Recommended Practice - 'Accounting and Reporting by Charities'.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the academy’s ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection.

Audit response to risks identified

As a result of performing the above, we identified income recognition, override of controls and adherence to laws and regulations as the key audit matters related to the potential risk of fraud.

CHESTER DIOCESAN BOARD OF EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESTER DIOCESAN BOARD OF EDUCATION
- 22 -

Our procedures to respond to risks identified included the following:

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Hall (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth (Audit) Limited
17 June 2024
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
CHESTER DIOCESAN BOARD OF EDUCATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
Unrestricted
Endowment
Restricted
Total
Unrestricted
Endowment
Restricted
Total
funds
funds
funds
funds
funds
funds

designated

designated

2023
2023
2023
2023
2022
2022
2022
2022
Notes
£
£
£
£
£
£
£
£
Income from:
Donations and legacies
3
94,190
-
1,924,280
2,018,470
33,498
-
1,921,554
1,955,052
Charitable activities
4
100,952
-
-
100,952
82,035
-
-
82,035

Income from investments

5
143,972
-
311,040
455,012
147,193
-
271,103
418,296
Total income
339,114
-
2,235,320
2,574,434
262,726
-
2,192,657
2,455,383
Expenditure on:
Charitable activities
6
227,615
-
1,635,096
1,862,711
239,332
-
2,136,993
2,376,325
Net gains/(losses) on investments
11
130,680
-
782,514
913,194
(183,414)
(318,228)
(1,196,576)
(1,698,218)
Net movement in funds
242,179
-
1,382,738
1,624,917
(160,020)
(318,228)
(1,140,912)
(1,619,160)
Fund balances at 1 January 2023
1,609,545
1,178,638
9,627,275
12,415,458
1,769,565
1,496,866
10,768,187
14,034,618
Fund balances at 31 December 2023
1,851,724
1,178,638
11,010,013
14,040,375
1,609,545
1,178,638
9,627,275
12,415,458

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
CHESTER DIOCESAN BOARD OF EDUCATION
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 24 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,804
2,935
Investment property
14
1,178,638
1,178,638
Investments
15
10,847,323
10,150,878
12,030,765
11,332,451
Current assets
Debtors
16
94,208
279,853
Cash at bank and in hand
3,317,406
2,408,218
3,411,614
2,688,071
Creditors: amounts falling due within one year
17
(1,402,004)
(1,605,064)
Net current assets
2,009,610
1,083,007
Total assets less current liabilities
14,040,375
12,415,458
Income funds
Restricted funds
19
11,010,013
9,627,275
Endowment funds - designated
1,178,638
1,178,638
Unrestricted funds
1,851,724
1,609,545
14,040,375
12,415,458
The financial statements were approved by the Trustees on 16 June 2024
Ven Dr M Gilbertson (Chair)
Trustee
Company registration number 85176
CHESTER DIOCESAN BOARD OF EDUCATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
154,930
197,682
Investing activities
Purchase of tangible fixed assets
(2,904)
(3,436)
Repayment of investment loans and receivables
85,401
141,966
Proceeds from disposal of  investments
216,749
-
Investment income received
455,012
418,296
Net cash generated from investing activities
754,258
556,826
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
909,188
754,508
Cash and cash equivalents at beginning of year
2,408,218
1,653,710
Cash and cash equivalents at end of year
3,317,406
2,408,218
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
1
Accounting policies
Charity information

Chester Diocesan Board of Education is a private company limited by guarantee incorporated in England and Wales. The registered office is Church House, 5500 Daresbury Park, Daresbury, Warrington, Cheshire, WA4 4GE.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Charities Act 2011, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK” (“FRS 102”) and the Charities SORP "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 (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Gift aided distribution from DBE Services Ltd - the charity has an investment in DBE Services Ltd which provides services to church schools including inspections, teaching and curriculum support, administrative services, building work, equipment and construction support. The charity receives gift aided distributions on the profits. The distribution is recognised on receipt.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 27 -

The charity operates a support package under the name "Chester Diocesan Family of Schools" referred to elsewhere in the annual report and accounts, and receives subscription income as a result which is recognised on an accruals basis in the accounts.

Conference income is derived from training events delivered to staff at Church of England Schools and is recognised on an accruals basis.

The charity receives dividends and interest on a range of investments, all holdings in Church of England funds operated by CCLA Investment Management Ltd which are recognised on receipt.

 

The charity also receives rental income from four former schools which is recognised on an accruals basis.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Charitable activity costs also include the cost of administering grant claims in respect of building and maintenance work carried out on school properties, the cost of administering grants payable and providing support to the other charitable activities of the company.

Grants

Grants payable included within charitable activities represent discretionary grants to Governors or Schools for financial assistance towards to the cost of specific, approved school projects. Grants payable are included in the Statement of Financial Activities on the accruals basis, to the extent that conditions for payment have been met.

 

Allocation of support costs

As explained in the annual report, the charity supports the Church of England schools in the Diocese in a wide range of ways including assisting with building projects, supporting and training governors, and promoting religious education more widely. The allocation between activates fluctuates as necessary.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers and office equipment
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 28 -
1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities.

Proceeds from the sale of former school properties are normally held by the charity as custodian trustee (in specific purpose funds) until a relevant Educational Endowment Order or determination is issued.

 

The financial statements up to 31st December 1996 did not include any value for former school properties held in the name of the charity which had not yet been sold, but these properties are classified as investment properties, and have been included in subsequent accounts.

1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 29 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13

Amounts due from school governors in respect of projects

The charity receives funding on behalf of schools from the Department of Education for funding building works and other projects. The charity also makes payments to contractors on behalf of the schools. In the majority of cases the governors make a 10% contribution to the cost of the project; this often leaves and amount payable to the charity by the governors of the school. By concession, the charity allows school governors the time to pay their contribution, dependent on size and duration of the project and other factors. On occasions the governors of the school fund the whole cost of the project, leaving the full amount repayable to the charity.

1.14

Funds held as custodian trustee

The charity acts as custodian trustee in respect of funds held on behalf of local trustees and funds arising out of the sale of school properties where funds are held pending the issue of an Order or determination.

 

Funds held as custodian trustee do not belong to the charity and so are not a component of the charities assets, income or expenditure in the reporting period.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Donations and gifts
94,190
-
94,190
33,498
-
33,498

VASCA income

-
1,924,280
1,924,280
-
1,921,554
1,921,554
94,190
1,924,280
2,018,470
33,498
1,921,554
1,955,052
Donations and gifts
Gift aided distribution from DBE Services Ltd
94,190
-
94,190
-
-
-
Other
-
-
-
33,498
-
33,498
94,190
-
94,190
33,498
-
33,498
4
Charitable activities

 

 

2023
2022
£
£

Conference income

49,315
38,252

Chester Diocesan family of schools

48,907
43,708

Other income

2,730
75
100,952
82,035
5

Income from investments

Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£

Dividends and interest

58,252
311,040
369,292
60,530
271,103
331,633

Rental income

85,720
-
85,720
86,663
-
86,663
143,972
311,040
455,012
147,193
271,103
418,296
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
6
Charitable activities

Charitable activities

Charitable activities

2023
2022
£
£
Depreciation and impairment
1,035
501

Property costs

26,769
(5,791)

Salaries and recharges

336,204
331,479

Educational support costs

49,725
69,150

Other expenses

9,653
9,926

Grants (see note 7)

1,740
1,165

VASCA capital expenditure

1,347,455
1,853,395
1,772,581
2,259,825
Grant funding of activities (see note 7)
-
25,000
Share of support costs (see note 8)
75,430
79,620
Share of governance costs (see note 8)
14,700
11,880
1,862,711
2,376,325
Analysis by fund
Unrestricted funds
227,615
239,332
Restricted funds
1,635,096
2,136,993
1,862,711
2,376,325
7
Grants payable

In 2023 a grant of £nil (2022 - £25,000) was made to CDAT (Chester Diocesan Academies Trust). CDAT works with the charity and provides the Church of England Schools in the Dioceses with the opportunity to join a multi academy trust that supports their specifically Christian ethos. Eleven schools were part of CDAT at 31st December 2023.

 

In addition to this further grants were made to the governors of other schools in the year of £1,740 (2022 - £1,165).

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
8
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£

Salaries and recharges

37,356
-
37,356
36,831
-
36,831

Legal and professional fees

5,262
-
5,262
10,619
-
10,619

Accountancy fees

21,971
-
21,971
20,424
-
20,424

Bank charges

463
-
463
406
-
406

Other costs

10,378
-
10,378
11,340
-
11,340
Audit fees
-
14,700
14,700
-
11,880
11,880
75,430
14,700
90,130
79,620
11,880
91,500
Analysed between
Charitable activities
75,430
14,700
90,130
79,620
11,880
91,500

Governance costs includes payments to the auditors of £14,700 (2022 - £11,880) for audit fees. The Chester Diocesan Board of Education is not VAT registered, audit fees are shown including VAT.

9
Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2022 - £nil).

10
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0

There were 7.33 (2022 - 7.75) full time equivalent employees under joint contracts of employment with Chester Diocesan Board of Finance. Their employment costs are borne by Chester Diocesan Board of Finance and recharged to Chester Diocesan Board of Education.

 

The trustees have handed much of the day to day management of the charity to a number of key management personnel including the Director of Education. The total cost of employee benefits (including employer's national insurance and employers pension contributions) relating to key management personnel amounted to £173,016 (2022 - £167,230). Of this amount £nil balance was borne by Chester Diocesan Board of Education. The remaining balance was borne by Chester Diocesan Board of Finance and recharged. Of these, the highest paid was Mr Christopher Penn who received £74,985 (2022 - £71,059) excluding employers national insurance, together with pension contributions of £11,248 (2022 - £10,658).

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
11
Net gains/(losses) on investments
Unrestricted
Restricted
Total
Unrestricted
Endowment
Restricted
Total
funds
funds
funds
funds
funds

designated

2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
Revaluation of investments
130,680
782,514
913,194
(183,414)
-
(1,196,576)
(1,379,990)
Revaluation of investment properties
-
-
-
-
(318,228)
-
(318,228)
130,680
782,514
913,194
(183,414)
(318,228)
(1,196,576)
(1,698,218)
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
12
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13
Tangible fixed assets
Computers and office equipment
£
Cost
At 1 January 2023
3,436
Additions
2,904
At 31 December 2023
6,340
Depreciation and impairment
At 1 January 2023
501
Depreciation charged in the year
1,035
At 31 December 2023
1,536
Carrying amount
At 31 December 2023
4,804
At 31 December 2022
2,935

 

14
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
1,178,638

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31st December 2023 by Cassidy & Ashton, an independent, professionally qualified surveyor. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties as at the year end date of 31 December 2023.

 

The properties were provided to the charity at no cost by order of the Secretary of State for Education. The values of the properties at the time of receipt are not known.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Investment property
(Continued)
- 35 -
2023
2022
£
£
Freehold
1,178,638
1,178,638
Long leasehold
-
-
Short leasehold
-
-
15
Fixed asset investments

CCLA Investments

DBE Services Ltd

Total
£
£
£
Cost or valuation
At 1 January 2023
10,150,866
12
10,150,878
Valuation changes
913,194
-
913,194
Disposals
(216,749)
-
(216,749)
At 31 December 2023
10,847,311
12
10,847,323
Carrying amount
At 31 December 2023
10,847,311
12
10,847,323
At 31 December 2022
10,150,866
12
10,150,878
2023
2022
£
£
Investments at fair value comprise:
CBF Investment Fund
9,173,573
8,378,418
CBF Global Equity Income Fund
1,019,585
1,092,995
CBF Property Fund
604,481
634,036
COIF Charities Investment Fund
49,672
45,417
10,847,311
10,150,866
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
57,503
103,254
Other debtors
33,944
137,735
Prepayments and accrued income
2,761
2,765
94,208
243,754
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
-
36,099
Total debtors
94,208
279,853
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Deferred income
18
43,662
44,733
Trade creditors
13,357
18,542
Other DoE and school creditors
147,987
99,587
Other creditors
1,098,118
1,373,962
Accruals
98,880
68,240
1,402,004
1,605,064
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
18
Deferred income
2023
2022
£
£
Other deferred income
43,662
44,733

Deferred income is included in the financial statements as follows:

2023
2022
£
£
Deferred income is included within:
Current liabilities
43,662
44,733
Movements in the year:
Deferred income at 1 January 2023
44,733
32,254
Released from previous periods
(44,733)
(32,254)
Resources deferred in the year
43,662
44,733
Deferred income at 31 December 2023
43,662
44,733
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
19
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 January 2022
Incoming resources
Resources expended
Revaluations, gains and losses
Balance at
1 January 2023
Incoming resources
Resources expended
Revaluations, gains and losses
Balance at
31 December 2023
£
£
£
£
£
£
£
£
£
SCA funds - allocated
506,772
1,853,315
(1,853,395)
-
506,692
1,427,540
(1,347,455)
-
586,777
SCA funds - unallocated
457,273
68,239
-
-
525,512
496,740
-
-
1,022,252
Investments
9,804,142
271,104
(283,598)
(1,196,577)
8,595,071
311,040
(287,641)
782,514
9,400,984
10,768,187
2,192,658
(2,136,993)
(1,196,577)
9,627,275
2,235,320
(1,635,096)
782,514
11,010,013

SCA funds

The charity assists voluntary aided schools with school building projects and the provision of IT equipment. The VASCA (Voluntary-Aided Schools Condition Allocation) system was introduced in April 2020 and superseded the LCVAP (Locally Coordinated Voluntary-Aided Programme). Until April 2020, the charity acted as the agent of school governors in helping to arrange funding through the DfE and Local Authorities and in paying professional fees and building costs on behalf of school governors. The LCVAP income and expenditure was not reflected in the Statement of Financial Activities as the charity had no control over the funds and the transactions were those of the school governors rather than the charity, which acted as agent. The change in funding from April 2020 gives the charity ultimate control over the application of the VASCA grants to specific schools. Therefore, the VASCA grant funding received is recognised in the SOFA along with the related expenditure.

Investment funds

Funds arising out of the sale of school properties were received in the past years under various Educational Endowment Orders and were amalgamated into a uniform statutory trust in 1995 following the provisions of the Education Act 1993. These funds are shown separately as trust funds in the financial statements and their use is restricted to the following: -

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
20
Analysis of net assets between funds
Unrestricted funds
Designated funds
Restricted funds
Total
Unrestricted funds
Designated funds
Restricted funds
Total
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
4,804
-
-
4,804
2,935
-
-
2,935
Investment properties
-
1,178,638
-
1,178,638
-
1,178,638
-
1,178,638
Investments
1,512,309
-
9,335,014
10,847,323
1,381,617
-
8,769,261
10,150,878
Current assets/(liabilities)
334,611
-
1,674,999
2,009,610
224,993
-
858,014
1,083,007
1,851,724
1,178,638
11,010,013
14,040,375
1,609,545
1,178,638
9,627,275
12,415,458
CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 40 -
21
Capital commitments

Capital commitments relating to VASCA projects at the year end was £1,392,632 (2022 - £436,429).

22
Related party transactions

Chester Diocesan Board of Education acts as the education authority for the Church of England in the Diocese of Chester.

 

Contribution re joint employment contracts and other recharges payable to The Chester Diocesan Board of Finance, an organisation in which there are a number of trustees on both boards totalled £373,677 (2022 - £368,309). The balance outstanding in creditors at the year end is £117 (2022 - £nil).

 

The charity owns 16.67% of the ordinary share capital of DBE Services Ltd, an entity which commenced trading on 1st January 2006. The company undertakes support work across six northern dioceses. A distribution of £1,550 (2022 - £33,498) was received from DBE Services Ltd during the year.

 

The charity does not regard the schools in the Diocese to be classified as related parties.

 

Chester Diocesan Academies Trust

Some of the trustees of Chester Diocesan Board of Education are also trustees of Chester Diocesan Academies Trust. The trustees do not consider that there is overall control that would require this charity to be consolidated within these financial statements. During the year Chester Diocesan Academies Trust received a income of £5,427 (2022 - £25,000) from Chester Diocesan Board of Education. and paid over £2,875 (2022 - £nil) for services received.

 

Funds Held as Custodian Trustee

The charity acts as custodian trustee in respect of funds held on behalf of local trustees and such specific purpose funds are shown separately from the financial statements, and total £78,555 (2022 - £153,526). The charity also acts as custodian trustee in respect of funds arising out of the sale of school properties where the funds are held pending the issue of an Order or other determination. The funds are held in separate accounts to ensure that sufficient custody and segregation from the charity's own assets.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Related party transactions
(Continued)
- 41 -

Woodchurch High School

The amount charged for the Family of Schools Subscription to Woodchurch High School, of which Revd L Bannon was employed, was £1,620 (2022 - £1,370).

 

Bowdon C of E School

The amount charged for the Family of Schools Subscription to Bowden C of E School, of which Mrs S Hudson was employed was £550. The amount charged in relation to Head Teachers conference income was £nil (2022 - £150). And the amount charged in relation to general conference income was £9,714 (2022 - £1,120). At the year end £nil (2022 - £580) remained as due to the Diocese.

 

The Samara Trust

The amount charged for the Family of Schools Subscription to The Samara Trust was £1,323 (2022 - £1,125), of which Mrs S Noakes was a Trustee.

 

The Bishops' Blue Coat C of E High School

The amount charged for the Family of Schools Subscription to The Bishops' Blue Coat C of E High School was £300 (2022 - £1,100). And course income of £2,070 (2022 - £330) was also received from the School, of which Mrs S Noakes is a Trustee.

 

Altrincham C of E Primary School

The amount charged in relation to general conference income was £8,944 (2022 - £nil) to Altrincham C of E Primary school, of which Mrs C Corley was a Governor. £715 was also paid over (2022 - £nil) for services received.

 

St Chads C of E School

The amount charged for the Family of Schools Subscription to St Chads C of E School, of which Mrs C Speed was employed, was £560.

23
Cash generated from operations
2023
2022
£
£
Surplus/(deficit) for the year
1,624,917
(1,619,159)
Adjustments for:
Investment income recognised in statement of financial activities
(455,012)
(418,296)
Fair value gains and losses on investment properties
-
318,228
Fair value gains and losses on investments
(913,194)
1,379,990
Depreciation and impairment of tangible fixed assets
1,035
501
Movements in working capital:
Decrease/(increase) in debtors
100,244
(82,566)
(Decrease)/increase in creditors
(201,989)
606,505
(Decrease)/increase in deferred income
(1,071)
12,479
Cash generated from operations
154,930
197,682
24
Analysis of changes in net funds

The charity had no debt during the year.

CHESTER DIOCESAN BOARD OF EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 42 -
25
Sole Trusteeship of Exempt Charities - School Trusts

The below charities are exempt charities of which the Chester Diocesan Board of Education is sole trustee. In accordance with section 19.13 of the Charities SORP (FRS 102) the description and class of assets for all of the below are the school building and lands of the Schools. There is no trading through these exempt charities, their sole purpose is to hold the lands and buildings in the form of School Trusts: -

 

 

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