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: - Mr David Brian Allard - Mr David Bird (Vice-Chair, re-elected 25th March 2020) - Mr Andrew Richard Evans (re-appointed 1st September 2020) - Mr John Andrew Lowe (re-appointed 1st September 2020) Appointed by the PCC of Mountsorrel Christ Church: - Mr Raymond Ivor Chamberlain (re-appointed 1st September 2020, resigned 10th February 2021) - Mr Gary Howard Lee - Mrs Dirne Cynthia Spearing (re-appointed 1st September 2020) - Mr David Brian Wroe (passed away 22nd May 2020) - Mr Neil Fraser Raffan (appointed 25th November 2020) Appointed by the PCC of Mountsorrel St Peter: - Mr Ian Kenneth Evans - Mr Jeffrey Scott - Mrs Alison Sheila Scott - Mr David Michael Winsor (Chair, re-elected 25th March 2020) ## **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: - Cleaner £922 (£892 in 2019) - Two Children and Families workers £24,462 (£23,720 in 2019) - General grants totalling £11,198 for architect fees, remedial building works, remedial electrical works, - payment towards insurance and emergency repairs (Total £3,180 in 2019 for Fun@4, quinquennial inspection and Week of Mission events and activities) ## **iv) Grants to the PCC of Mountsorrel St Peter’s Church** The following grants were made in 2020: - Administrator £4,192 (£5,154 in 2019) - Cleaner £882 (£928 in 2019) - General grants totalling £3,931 for painting conservation and electrical work (Total £5,225 in 2019 for - lighting, quinquennial inspection, re-decoration, Senior Sunday and VAT refund (£2,079)) ## **v) Improvements at the vicarage** The following grant was made in 2020: - To provide fencing at the vicarage £2,568 was paid to the Diocese of Leicester (Total £256 in 2019 for - fruit trees for the vicarage orchard) ## **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: - 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 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 business. 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