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← Mountsorrel Church Of England Fund

2020-12-31-accounts

Charity registration number: 1041743

Mountsorrel Church of England Fund

Annual Report and Financial Statements

for the Year Ended 31 December 2020

Mountsorrel Church of England Fund

Contents

Trustees' Report 1 to 5
Statement of Trustees' Responsibilities 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 16

Mountsorrel Church of England Fund

Trustees' Report

Reference and administrative details

Principal office:

7 Oakthorpe Avenue, Leicester LE3 0UR

Clerk to the Trustees:

Jane Hammond

janelouisehammond@gmail.com

Charity registration number:

1041743 - Mountsorrel Church of England Fund

Bankers:

National Westminster Bank plc, Market Place, Loughborough LE11 3NZ

Independent examiner:

RWB Chartered Accountants, Northgate House, North Gate, New Basford, Nottingham NG7 7BQ

Investment adviser:

Brewin Dolphin Ltd, 35 Station Street, Nottingham NG2 3DQ

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Mountsorrel Church of England Fund charity comprises only of the Mountsorrel Church of England Fund.

TRUSTEES

The Charity Commission scheme dated 1 September 1993 (the scheme) stipulates that there should be twelve trustees:

• Four appointed by the Trustees of the Mountsorrel United Charities.

• Four appointed by the Parochial Church Council (PCC) of the Ecclesiastical Parish of Mountsorrel Christ Church.

• Four appointed by the Parochial Church Council (PCC) of the Ecclesiastical Parish of Mountsorrel St Peter.

POLICIES FOR THE INDUCTION OF TRUSTEES

New Trustees receive with their first agenda and minutes a copy of the above scheme together with Charity Commission guidance for Trustees, "The essential trustee: what you need to know, what you need to do (CC3)".

At the new Trustee's first meeting the chair of Trustees outlines the history, the work and responsibilities of all Trustees, and welcomes and formally introduces the new Trustee to the body of Trustees and the clerk.

TRAINING OF TRUSTEES

Trustees undertake training as the need arises by attending relevant courses.

Page 1

Mountsorrel Church of England Fund

Trustees' Report

THE TRUSTEES

The trustees who served the charity during the period were as follows:

Appointed by Mountsorrel United Charities:

Appointed by the PCC of Mountsorrel Christ Church:

Appointed by the PCC of Mountsorrel St Peter:

OBJECTIVES AND ACTIVITIES

The Mountsorrel Church of England Fund exists to promote the advancement of religion. Objectives and activities are defined by the following numbered clauses in the scheme which relate to the expenses of management and the application of income:

a) Clause 40 Expenses of management

The Trustees shall first defray out of the income of the fund all the proper costs, charges and expenses of and incidental to the administration and management of the fund.

b) Clause 41(1) Application of income

Subject to the above, the Trustees shall apply the income of the fund in advancing religion by defraying the expenses incurred by the said incumbent in discharging the duties of his office up to such an amount as is agreed with the said incumbent each year by the Trustees.

c) Clause 41(2) Application of income

The trustees may apply the said income in otherwise advancing religion by applying the same for the benefit of the said incumbent or by making a payment to the diocesan authority in or towards payment of the stipend of the said incumbent.

Page 2

Mountsorrel Church of England Fund

Trustees' Report

The income shall only be applied by the fund Trustees in any of the aforesaid ways if and so long as the said incumbent preaches or causes to be preached by himself or an ordained member of the clergy of the Church of England two sermons in every year, namely, one on the first Sunday after Martinmas and one on the Sunday next before the Feast of Epiphany, such sermons to be preached at either of the Parish Churches of Christ Church or St Peter.

d) Clause 41(3) Application of income

If and in so far as income is not required for application for any of the above purposes the Trustees shall apply the same in furthering the religious and other charitable work of the Church of England in the area consisting of the said ecclesiastical parishes in either or both of the following ways and in such other ways as they think fit:

i) In or towards repairing, improving and extending the said parish churches and other church buildings and in maintaining services at the said parish churches.

ii) In or towards improving, maintaining and repairing the vicarage of the said incumbent.

ACHIEVEMENTS AND PERFORMANCE

a) Imapct of Covid-19 global pandemic

All three scheduled board meetings during 2020 were cancelled for safety reasons, due to the ongoing impact of the Covid-19 global pandemic. Essential business was conducted by post instead.

Documents were sent out as usual in advance of each scheduled meeting by the clerk. However, instead of providing their views at a physical meeting, Trustees were instead asked to consider the documents, then complete, sign and date a separate sheet to indicate their views on each agenda item.

b) Clause 41(1)

Expenses of £3,763 were paid in 2020 (£3,447 in 2019) as incurred by the said incumbent.

c) Clause 41(2)

The Trustees did not apply any of the said income directly for the benefit of the said incumbent in 2020.

The Trustees made a payment of £13,758 in 2020 (£13,489 in 2019) to the Diocese of Leicester towards payment of the stipend of the said incumbent.

In relation to the calendar year 2020 the required sermons were preached as follows:

i) The preaching of the sermon on the Sunday next before the Feast of Epiphany 2020 (6th January) took place on 5th January 2020 at Mountsorrel Christ Church, 11.00am Service of Holy Communion. This sermon was preached by the Reverend Colin Resch.

ii) The preaching of the sermon on the first Sunday after Martinmas 2020 (11th November) was delayed due to the Covid-19 autumn national lockdown and, with the agreement of the Trustees, took place at the first available opportunity once churches had been given permission from the government to re-open, on 6th December 2020 at Mountsorrel St Peter's 9.30am Service of Holy Communion. This sermon was preached by the Reverend Colin Resch.

d) Clause 41(3)

In 2020 the Trustees applied the income of the fund in furthering the religious and other charitable work of the Church of England as follows:

Page 3

Mountsorrel Church of England Fund

Trustees' Report

i) Expenses of the curate

Expenses of £1,024 were paid in 2020 (£1,256 in 2019) as incurred by the curate.

ii) Payment to the Diocese of Leicester towards payment of the stipend of the curate

The Trustees made a payment of £12,672 in 2020 (£6,241 in 2019) to the Diocese of Leicester towards payment of the stipend of the curate.

iii) Grants to the PCC of Mountsorrel Christ Church

The following grants were made in 2020:

iv) Grants to the PCC of Mountsorrel St Peter’s Church

The following grants were made in 2020:

v) Improvements at the vicarage

The following grant was made in 2020:

FINANCIAL REVIEW

The trustees reviewed their finances during the year. See below under reserves policy.

PLANS FOR FUTURE PERIODS

The Trustees can only apply the income in accordance with the scheme in furthering the religious and other charitable work of the Church of England, in the area consisting of the said ecclesiastical parishes. Therefore, the Trustees can only consider applications for grants when the Parochial Church Councils make applications in accordance with their needs as they arise.

The Trustees will continue to consider grant applications for the various major projects which the Parochial Church Councils of Mountsorrel Christ Church and Mountsorrel St Peter have in hand for the year 2021.

Trustees will agree a new investment policy in 2021, and also review and update other relevant policies and procedures.

Page 4

Mountsorrel Church of England Fund

Trustees' Report

RESERVES POLICY

It is the policy of the charity to maintain funds that are free reserves of the charity, at a level that equates to approximately one year’s unrestricted management, administration and support costs.

In the past, the number of applications has not used up the available funds and therefore reserves have been considerably higher than this level. During 2020, Trustees continued to invest surplus income in an investment portfolio with Brewin Dolphin established in 2019.

RISK MANAGEMENT

The Trustees have examined the major strategic business and operational risks that the Charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

The annual report was approved by the trustees of the charity on 25 August 2021 and signed on its behalf by:

......................................... D Winsor Chair and trustee

Page 5

Mountsorrel Church of England Fund

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.

Approved by the trustees of the charity on 25 August 2021 and signed on its behalf by:

......................................... D Winsor Chair and trustee

Page 6

Mountsorrel Church of England Fund

Independent Examiner's Report to the trustees of Mountsorrel Church of England Fund

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 8 to 16.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Mountsorrel Church of England Fund you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Mountsorrel Church of England Fund's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. Accounting records were not kept in respect of Mountsorrel Church of England Fund as required by section 130 of the Act; or

  2. The accounts do not accord with those records; or

  3. The accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Neil Coupland FCA DChA RWB CA Limited

Northgate House North Gate New Basford Nottingham NG7 7BQ

25 August 2021

Page 7

Mountsorrel Church of England Fund

Statement of Financial Activities for the Year Ended 31 December 2020

Note
Income and Endowments from:
Investment income
2
Other income
Total Income
Expenditure on:
Raising funds
3
Charitable activities
4
Total Expenditure
Gains/losses on investment assets
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14		 Unrestricted
£
138,211
100,000
238,211
(2,145)
(84,203)
(86,348)
25,311
177,174
638,182
815,356		 Total
2020
£
138,211
100,000
238,211
(2,145)
(84,203)
(86,348)
25,311
177,174
638,182
815,356		 (As restated)
Total
2019
£
131,469
100
131,569
(278)
(70,448)
(70,726)
6,224
67,067
571,115
638,182

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 10 to 16 form an integral part of these financial statements. Page 8

Mountsorrel Church of England Fund

(Registration number: 1041743) Balance Sheet as at 31 December 2020

Note
Fixed assets
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
12
Creditors: Amounts falling due within one year
13
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
14		 2020
£
630,552
125,034
62,120
187,154
(2,350)
184,804
815,356
815,356
815,356		 2019
£ (As restated)
406,140
126,865
114,096
240,961
(8,919)
232,042
638,182
638,182
638,182

The financial statements on pages 8 to 16 were approved by the trustees, and authorised for issue on 25 August 2021 and signed on their behalf by:

......................................... D Winsor Chair and trustee

The notes on pages 10 to 16 form an integral part of these financial statements. Page 9

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Mountsorrel Church of England Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Reclassification of comparative amounts

The charity is one of three organisations which receive a share of investment income from Mountsorrel United Charities (MUC). In previous years the charity would recognise its share of the gross income and expenses separately. Having reviewed the wording of the Charity Commission scheme under which MUC was created, the income from MUC is now paid over net of costs. Thus the current years results show only the net income from MUC. The comparative results for year ended 31 December 2019 have been amended accordingly. This has not altered the comparative surplus (deficit).

Income and endowments

Investment income

Dividends from the Church of England Fund's own investments are recognised once the dividend has been received.

In addition investments are held by Mountsorrel United Charities (MUC) and Mountsorrel Church of England Fund receives 1/3 of that income, net of costs. The income is recognised once it has been declared by MUC.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Page 10

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

2 Investment income

Other income from fixed asset investments Unrestricted
funds
General
£
138,211
138,211		 Total
2020
£
138,211
138,211

Page 11

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

Other income from fixed asset investments
3
Expenditure on raising funds		 Unrestricted
funds
General
£
131,469
131,469		 Total
2019
£
131,469
131,469

a) Investment management costs

Note
Other investment management costs;
Other portfolio management costs
Note
Other investment management costs;
Other portfolio management costs
Investment management costs
Investment management costs		 Unrestricted
funds
General
£
2,145
2,145
Unrestricted
funds
General
£
278
278
Direct costs
£
2,145
Direct costs
£
278		 Total
2020
£
2,145
2,145
Total
2019
£
278
278
Total
2020
£
2,145
Total
2019
£
278

Page 12

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

4 Expenditure on charitable activities

Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Curate expenses
Xero - software fees
Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Curate expenses
Xero - software fees		 Unrestricted
funds
General
£
3,763
74,585
3,709
212
1,024
94
83,387
Unrestricted
funds
General
£
3,447
58,829
5,488
47
1,256
577
69,644		 Total
2020
£
3,763
74,585
3,709
212
1,024
94
83,387
Total
2019
£
3,447
58,829
5,488
47
1,256
577
69,644

5 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Independent examiner fees
Examination of the financial statements		 Unrestricted
funds
General
£
816
816
Unrestricted
funds
General
£
804
804		 Total
2020
£
816
816
Total
2019
£
804
804

Page 13

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

6 Grant-making

Analysis of grants

Analysis
Saint Peter's Church
Christ Church
Payment towards stipend
Children and families workers
Diocese		 Grants to individuals
2020
£
2019
£
9,005
11,307
12,120
4,072
26,430
19,730
24,462
23,720
2,568
-
74,585
58,829		 Grants to individuals
2020
£
2019
£
9,005
11,307
12,120
4,072
26,430
19,730
24,462
23,720
2,568
-
74,585
58,829
58,829

The support costs associated with grant-making are £Nil (31 December 2019 - £Nil).

7 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

8 Independent examiner's remuneration

8
Independent examiner's remuneration
2020 2019
£ £
Examination of the financial statements 816 804

9 Taxation

The charity is a registered charity and is therefore exempt from taxation.

10 Fixed asset investments

10 Fixed asset investments
2020 2019
£ £ (As restated)
Other investments 630,552 406,140

Page 14

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

Other investments

Cost or Valuation
At 1 January 2020
Revaluation
Additions
Disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Listed
investments
£
363,821
26,688
285,483
(66,184)
609,808
609,808
363,821		 Cash deposits
£
42,319
-
-
(21,575)
20,744
20,744
42,319		 Total
£
406,140
26,688
285,483
(87,759)
630,552
630,552
406,140

Ths historical cost of the investments as at 31 December 2020 was £597,504 (2019: £399,766).

11 Debtors

Due from group undertakings
Other debtors
12 Cash and cash equivalents
Cash at bank
13 Creditors: amounts falling due within one year
Accruals		 2020
£
124,534
500
125,034
2020
£
62,120
2020
£
2,350		 2019
£ (As restated)
126,377
488
126,865
2019
£ (As restated)
114,096
2019
£ (As restated)
8,919

Page 15

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2020

14 Funds

Unrestricted
General		 Balance at 1
January
2020
£
638,182		 Incoming
resources
£
238,211		 Resources
expended
£
(86,348)		 Other
recognised
gains/(losses)
£
25,311		 Balance at
31
December
2020
£
815,356

15 Analysis of net assets between funds

Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
630,552
187,154
(2,350)
815,356		 Total funds at
31 December
2020
£
630,552
187,154
(2,350)
815,356

16 Related party transactions

During the year the following related party transactions occurred:

Mountsorrel United Charities

Mountsorrel United Charites allocates income to Mountsorrel Church of England Fund. The Church of England Fund is entitled to one third of the income received by Mountsorrel United Charities, which is paid over on a regular basis.

During the year, Mountsorrel United Charities allocated Mountsorrel Church of England Fund investment income of £129,366 (2019: £130,884) and other income of £100,000 (2019: £Nil). At the balance sheet date the amount due from Mountsorrel United Charities was £124,534 (2019 - £126,377).

Four of Mountsorrel Church of England Fund's twelve Trustees are appointed by Mountsorrel United Charities.

Page 16