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← Mountsorrel Church Of England Fund

2021-12-31-accounts

Charity registration number: 1041743

Mountsorrel Church of England Fund

Annual Report and Financial Statements

for the Year Ended 31 December 2021

Mountsorrel Church of England Fund

Contents

Trustees' Report 1 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 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 who are communicant members of the Church of England appointed as follows:

• 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.

PCC appointed trustees may be, but do not have to be, members of the PCC.

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 relating to the application of income are defined by clauses 41(1), 41(2) and 41(3) in the scheme.

The Trustees can only apply income to further the religious and other charitable work of the Church of England, in the area consisting of the ecclesiastical parishes of Mountsorrel Christ Church and Mountsorrel St Peter. Together, these ecclesiastical parishes are known as the United Benefice of Mountsorrel.

Additionally, income can only be applied if and so long as the Priest in Charge of the United Benefice of Mountsorrel 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. In relation to the calendar year 2021 the required sermons were preached in line with the above.

Page 2

Mountsorrel Church of England Fund

Trustees' Report

ACHIEVEMENTS AND PERFORMANCE

a) Imapct of Covid-19 global pandemic

The March board meeting was cancelled for safety reasons, due to the ongoing impact of the Covid-19 global pandemic and essential business was conducted by post instead. Documents were sent out as usual in advance of the meeting by the Clerk. However, instead of providing their views and voting at a physical meeting, Trustees were instead asked to consider the documents and record their vote on each agenda item by completing, signing and dating a separate sheet which they posted back to the Clerk.

The board meeting due to be held in July was postponed until August to enable a face-to-face meeting to be held, once government restrictions had been lifted.

b) Clause 41(1)

Expenses of £3,062 were paid in 2021 (£3,763 in 2020) as incurred by the Priest in Charge of the United Benefice of Mountsorrel.

c) Clause 41(2)

The Trustees did not apply any of the said income directly for the benefit of the Priest in Charge of the United Benefice of Mountsorrel in 2021.

The Trustees made a payment of £13,826 in 2021 (£13,758 in 2020) to the Diocese of Leicester towards payment of the stipend of the Priest in Charge of the United Benefice of Mountsorrel. (The Revd. Colin Resch).

d) Clause 41(3)

In 2021 the Trustees applied the income of the fund in furthering the religious and other charitable work of the Church of England as follows:

i) Expenses of the Curate (The Revd. Darren Walker)

Expenses of £307 were paid in 2021 (£1,024 in 2020) 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 £7,428 in 2021 (covering January - July) (£12,672 in 2020) to the Diocese of Leicester towards payment of the stipend of the Curate. (The Revd. Darren Walker left the United Benefice of Mountsorrel in July 2021).

iii) Grants to the PCC of Mountsorrel Christ Church

The following grants were made in 2021:

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

The following grants were made in 2021:

Page 3

Mountsorrel Church of England Fund

Trustees' Report

v) Improvements at the vicarage

No grants were made in 2021 (£2,568 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 United Benefice of Mountsorrel. 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 the United Benefice of Mountsorrel have in hand for the year 2022.

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 2021, Trustees continued to invest surplus income in an investment portfolio established in 2019 with Brewin Dolphin.

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 27 July 2022 and signed on its behalf by:

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

Page 4

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 27 July 2022 and signed on its behalf by:

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

Page 5

Mountsorrel Church of England Fund

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

I report to the trustees on my examination of the accounts of Mountsorrel Church of England Fund for the year ended 31 December 2021.

Responsibilities and basis of report

As the Charity 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

27 July 2022

Page 6

Mountsorrel Church of England Fund

Statement of Financial Activities for the Year Ended 31 December 2021

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
£
237,076
-
237,076
(2,592)
(133,373)
(135,965)
41,166
142,277
815,356
957,633		 Total
2021
£
237,076
-
237,076
(2,592)
(133,373)
(135,965)
41,166
142,277
815,356
957,633		 Total
2020
£
138,211
100,000
238,211
(2,145)
(84,203)
(86,348)
25,311
177,174
638,182
815,356

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

The notes on pages 9 to 16 form an integral part of these financial statements. Page 7

Mountsorrel Church of England Fund

(Registration number: 1041743) Balance Sheet as at 31 December 2021

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		 2021
£
819,353
62,803
78,350
141,153
(2,873)
138,280
957,633
957,633
957,633		 2020
£
630,552
125,034
62,120
187,154
(2,350)
184,804
815,356
815,356
815,356

The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 27 July 2022 and signed on their behalf by:

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

The notes on pages 9 to 16 form an integral part of these financial statements. Page 8

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

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.

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.

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.

Page 9

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

Page 10

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

2 Investment income

Other income from fixed asset investments
Total for 2021
Total for 2020		 Unrestricted
funds
General
£
237,076
237,076
138,211		 Total
funds
£
237,076
237,076
138,211

Page 11

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

3 Expenditure on raising funds

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
£
2,592
2,592
Unrestricted
funds
General
£
2,145
2,145
Direct costs
£
2,592
Direct costs
£
2,145		 Total
2021
£
2,592
2,592
Total
2020
£
2,145
2,145
Total
2021
£
2,592
Total
2020
£
2,145

Page 12

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

4 Expenditure on charitable activities

Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Curate expenses
Xero - software fees
Xero support
Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Curate expenses
Xero - software fees		 Unrestricted
funds
General
£
3,062
124,382
4,262
307
307
93
60
132,473
Unrestricted
funds
General
£
3,763
74,585
3,709
212
1,024
94
83,387		 Total
2021
£
3,062
124,382
4,262
307
307
93
60
132,473
Total
2020
£
3,763
74,585
3,709
212
1,024
94
83,387

5 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Total for 2021
Total for 2020		 Unrestricted
funds
General
£
900
900
816		 Total
funds
£
900
900
816

Page 13

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

6 Grant-making

Analysis of grants

Analysis
Saint Peter's Church
Christ Church
Payment towards stipend
Children and families workers
Diocese		 Grants to individuals
2021
£
2020
£
9,204
9,005
66,441
12,120
21,254
26,430
27,483
24,462
-
2,568
124,382
74,585		 Grants to individuals
2021
£
2020
£
9,204
9,005
66,441
12,120
21,254
26,430
27,483
24,462
-
2,568
124,382
74,585
74,585

The support costs associated with grant-making are £Nil (31 December 2020 - £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
Examination of the financial statements
9
Taxation
The Charity is a registered charity and is therefore exempt from taxation.
10 Fixed asset investments
Other investments		 2021
£
900
2021
£
819,353		 2020
£
816
2020
£
630,552

Page 14

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

Other investments

Cost or Valuation
At 1 January 2021
Revaluation
Additions
Disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Listed
investments
£
609,808
36,302
164,718
(41,616)
769,212
769,212
609,808		 Cash deposits
£
20,744
-
29,397
-
50,141
50,141
20,744		 Total
£
630,552
36,302
194,115
(41,616)
819,353
819,353
630,552

Ths historical cost of the investments as at 31 December 2021 was £750,599 (2020: £597,504).

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		 2021
£
5,000
57,803
62,803
2021
£
78,350
2021
£
2,873		 2020
£
124,534
500
125,034
2020
£
62,120
2020
£
2,350

Page 15

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2021

14 Funds

Unrestricted
General		 Balance at 1
January
2021
£
815,356		 Incoming
resources
£
237,076		 Resources
expended
£
(135,965)		 Other
recognised
gains/(losses)
£
41,166		 Balance at
31
December
2021
£
957,633

15 Analysis of net assets between funds

Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
819,353
141,153
(2,873)
957,633		 Total funds at
31 December
2021
£
819,353
141,153
(2,873)
957,633

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 £223,558 (2020: £129,366) and other income of £Nil (2020: £100,000). At the balance sheet date the amount due from Mountsorrel United Charities was £5,000 (2020 - £124,534).

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

Page 16