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← Mountsorrel Church Of England Fund

2022-12-31-accounts

Charity registration number: 1041743

Mountsorrel Church of England Fund

Annual Report and Financial Statements

for the Year Ended 31 December 2022

Mountsorrel Church of England Fund

Contents (continued)

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 17

Mountsorrel Church of England Fund

Trustees' Report

Reference and administrative details

Principal office:

5 Pells Close Fleckney Leicester LE8 8TJ

Clerk to the Trustees:

Jane Hammond (Retired on 31/07/2022)

Kate Scranage (From 01/08/2022) kate@mountsorrelcsf.org.uk

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

Mountsorrel Church of England Fund is an unincorporated, registered charity in England and Wales, governed by a Charity Scheme.

The Charity Scheme is integrated within the Scheme of the Mountsorrel United Charities (registered charity no. 1027652) dated 1st September 1993.

The charity is governed by a board of up to 12 trustees. Day-to-day administration and bookkeeping is delegated to the Clerk, who provides services on a self-employed basis. All grant decisions are made by the board of trustees.

A professional investment manager is appointed to manage the investments. The investment manager meets with the trustees at least annually, and provides quarterly written reports.

The charity works closely with Mountsorrel United Charities as its principal funder, and the board of trustees has a representative on the Finance Committee of the United Charities.

OBJECTIVES AND ACTIVITIES

The Mountsorrel Church of England Fund exists to promote the advancement of religion, 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.

Page 1

Mountsorrel Church of England Fund

Trustees' Report (continued)

The charitable objectives are defined by the following clauses of the charity scheme:

• 41(1): Defraying the expenses incurred by the said incumbent [of the benefice of Mountsorrel Christ Church and Mountsorrel St. Peter] in discharging the duties of his office;

• 41(3): Furthering the religious and other charitable work of the Church of England in the area [the ecclesiastical parishes of Mountsorrel Christ Church and Mountsorrel St. Peter] in either or both of the following ways and in such other ways as [the trustees] think fit:

(a) Towards repairing, improving and extending the said parish churches and other church buildings and in maintaining services at the said parish churches;

(b) Towards improving, maintaining and repairing the vicarage of the said incumbent.

The charity’s objectives are achieved through making grants and payments for the purposes outlined above.

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 must be preached at either of the Parish Churches of Christ Church or St Peter. In the calendar year 2022 the required sermons were preached on 2nd January and 13th November.

The trustees confirm that in carrying out their activities, they have given due regard to the guidance on public benefit issued by the Charity Commission.

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:

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

The trustees who held office during the period and those in office since the year-end are:

Appointed by Mountsorrel United Charities:

Appointed by the PCC of Mountsorrel Christ Church:

Page 2

Mountsorrel Church of England Fund

Trustees' Report (continued)

Appointed by the PCC of Mountsorrel St Peter:

When appointed, all new trustees receive copies of the governing document, history of the charity, latest minutes and the latest annual report and accounts. New trustees are also directed to key guidance from the Charity Commission and other bodies, including guidance on the responsibilities of charity trustees. At the new Trustee's first meeting the chair of Trustees welcomes and formally introduces the new Trustee to the body of Trustees and the Clerk. New trustees make a declaration of trust, certify that they are not excluded from acting as trustees, and complete a declaration of interests form.

The Chairman and Vice Chairman of the trustees are elected annually, at the first meeting each year, as required by the governing document.

ACHIEVEMENTS AND PERFORMANCE

Meetings

The board of trustees met three times in 2022 at the Mountsorrel Parish Rooms. The trustees received reports to each meeting on income and expenditure and investment performance.

Administrative arrangements

A new Clerk was recruited in May 2022 after the Clerk expressed her intention to retire. Induction and handover of the Clerk’s responsibilities took place from May to July.

Grants - Clause 41(1)

Expenses of £4,354 were paid in 2022 (£3,062 in 2021) as incurred by the Priest in Charge of the United Benefice of Mountsorrel.

Grants - Clause 41(2 )

The Trustees made payments totalling £14,137 in 2022 (£13,826 in 2021) 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).

Grants - Clause 41(3)

In 2022 the Trustees applied the income of the fund in furthering the religious and other charitable work of the Church of England in the benefice as follows:

Page 3

Mountsorrel Church of England Fund

Trustees' Report (continued)

i) Grants to the PCC of Mountsorrel Christ Church

The following grants were made in 2022:

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

The following grants were made in 2022:

iii) Improvements to the Vicarage

No grants were made in 2022 (£0 in 2021).

FINANCIAL REVIEW

Financial position

The charity’s total income for the year was £262,033 (2021: £237,076).

Expenditure totalled £170,125 (2021: £135,965), resulting in a net deficit of £6,268 including the loss on revaluation of investment assets.

At the year-end, the charity held total assets of £951,365 (2021: £957,633), all of which were unrestricted funds.

Principal sources of funds

The charity’s principal source of income is Mountsorrel United Charities. The charity is entitled to receive one-third of the income of the Mountsorrel United Charities (after expenses) each year.

The charity has an investment portfolio, held with Brewin Dolphin, which generates further income.

Investments

The charity held investments valued at £718,257 at the year-end (2021: £819,353), which represented accumulated income funds.

Investment managers are appointed to manage and advise on the charity’s endowed investments on a discretionary management basis.

Page 4

Mountsorrel Church of England Fund

Trustees' Report (continued)

Reserves policy

As at 31st December 2022, the charity held free reserves of £951,365.

Reserves are required to enable the charity to maintain its current activities and to meet its long term aims. It is the policy of the charity to maintain funds that are free reserves at a level that equates to approximately one year’s unrestricted management, administration and support costs. Free reserves are the part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.

The trustees will keep the level of reserves in check by reviewing it alongside the management accounts at each meeting. At the year-end, the charity held reserves in excess of the stated policy; however, the trustees are mindful that the historic nature of the ecclesiastical buildings may require significant financial assistance through clause 41(3)(a) of the charity scheme should any major building or repair work become necessary. The trustees plan to review their reserves policy in 2023 to reflect these needs.

In determining the target level of reserves, the trustees have reviewed the risks faced, both short and medium term, to ensure the charity can continue to operate on a going concern basis.

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.

PLANS FOR FUTURE PERIODS

The Trustees will continue to consider grant applications for the various projects undertaken through the Parochial Church Councils of the United Benefice of Mountsorrel. The Trustees intend to actively encourage and facilitate applications, in order to help expend any accrued income in excess of the reserves policy.

The Trustees plan to review their reserves policy in 2023.

The annual report was approved by the trustees of the Charity on .................... and signed on its behalf by:

......................................... D Winsor Chairman 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 Charities (Accounts and Reports) Regulations 2008, 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees of the Charity on .................... and signed on its behalf by:

......................................... D Winsor Chairman 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 trustees on my examination of the accounts of Mountsorrel Church of England Fund for the year ended 31 December 2022.

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

Since Mountsorrel Church of England Fund's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of RWB CA Limited, which is one of the listed bodies.

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

Date:.............................

Page 7

Mountsorrel Church of England Fund

Statement of Financial Activities for the Year Ended 31 December 2022

Note
Income and Endowments from:
Donations and legacies
2
Investment income
3
Total Income
Expenditure on:
Raising funds
4
Charitable activities
5, 6
Total Expenditure
Gains/losses on investment assets
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
15		 Unrestricted
£
246,207
15,826
262,033
(2,831)
(167,294)
(170,125)
(98,176)
(6,268)
957,633
951,365		 Total
2022
£
246,207
15,826
262,033
(2,831)
(167,294)
(170,125)
(98,176)
(6,268)
957,633
951,365		 (As restated)
Total
2021
£
223,558
13,518
237,076
(2,592)
(133,373)
(135,965)
41,166
142,277
815,356
957,633

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

The notes on pages 10 to 17 form an integral part of these financial statements. Page 8

Mountsorrel Church of England Fund

(Registration number: 1041743) Balance Sheet as at 31 December 2022

Note
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within one year
14
Net current assets
Net assets
Funds of the Charity:
Unrestricted income funds
Unrestricted funds
Total funds
15		 2022
£
718,257
69,103
176,427
245,530
(12,422)
233,108
951,365
951,365
951,365		 2021
£ (As restated)
819,353
62,803
78,350
141,153
(2,873)
138,280
957,633
957,633
957,633

The financial statements on pages 8 to 17 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... D Winsor Chairman and trustee

The notes on pages 10 to 17 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 2022

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.

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

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Income from donations

The charity receives 1/3 of the income of Mountsorrel United Charities (MUC), net of costs. The income is recognised when receipt is probable and the amount can be reliably measured.

Investment income

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

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 10

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

Governance costs

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

Trade creditors

are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 11

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

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.

Page 12

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

2 Income from donations and legacies

Grants and donations;
Donations from companies, trusts and similar
proceeds
3
Investment income
Other income from fixed asset investments
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
246,207
246,207		 Total
2022
£
246,207
246,207
Unrestricted
funds
General
£
15,826
15,826
13,518		 Total
2021
£
223,558
223,558
Total
funds
£
15,826
15,826
13,518

4 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		 Unrestricted
funds
General
£
2,831
2,831
Unrestricted
funds
General
£
2,592
2,592		 Total
2022
£
2,831
2,831
Total
2021
£
2,592
2,592

Page 13

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

5 Expenditure on charitable activities

Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Xero - software fees
Priest in Charge expenses
Grants made
Clerks fees
Sundry expenses
Curate expenses
Xero - software fees
Xero support		 Unrestricted
funds
General
£
4,354
157,861
3,708
341
94
166,358
Unrestricted
funds
General
£
3,062
124,382
4,262
307
307
93
60
132,473		 Total
2022
£
4,354
157,861
3,708
341
94
166,358
Total
2021
£
3,062
124,382
4,262
307
307
93
60
132,473

6 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
936
936
900		 Total
funds
£
936
936
900

Page 14

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

7 Grant-making

Analysis of grants

Analysis
Saint Peter's Church
Christ Church
Payment towards stipend
Children and families workers/Youth worker		 Grants to individuals
2022
£
2021
£
12,536
9,204
85,841
66,441
14,137
21,254
45,347
27,483
157,861
124,382		 Grants to individuals
2022
£
2021
£
12,536
9,204
85,841
66,441
14,137
21,254
45,347
27,483
157,861
124,382
124,382

The support costs associated with grant-making are £Nil (31 December 2021 - £Nil).

8 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.

9 Independent examiner's remuneration

9
Independent examiner's remuneration
2022 2021
£ £
Examination of the financial statements 936 900

10 Taxation

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

11 Fixed asset investments

11 Fixed asset investments
2022 2021
£ £
Other investments 718,257 819,353

Page 15

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

Other investments

Cost or Valuation
At 1 January 2022
Revaluation
Additions
Disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Listed
investments
£
769,212
(93,598)
92,536
(66,904)
701,246
701,246
769,212		 Cash deposits
£
50,141
-
(33,130)
-
17,011
17,011
50,141		 Total
£
819,353
(93,598)
59,406
(66,904)
718,257
718,257
819,353

Ths historical cost of the investments as at 31 December 2022 was £745,998 (2021: £750,599).

12 Debtors

Due from group undertakings
Other debtors
13 Cash and cash equivalents
Cash at bank
14 Creditors: amounts falling due within one year
Grant provisions
Accruals		 2022
£
5,000
64,103
69,103
2022
£
176,427
2022
£
7,442
4,981
12,423		 2021
£
5,000
57,803
62,803
2021
£
78,350
2021
£
-
2,873
2,873

Page 16

Mountsorrel Church of England Fund

Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)

15 Funds

Unrestricted
General		 Balance at 1
January
2022
£
957,633		 Incoming
resources
£
262,033		 Resources
expended
£
(170,125)		 Other
recognised
gains/(losses)
£
(98,176)		 Balance at
31
December
2022
£
951,365

16 Analysis of net assets between funds

Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
718,257
245,530
(12,422)
951,365		 Total funds at
31 December
2022
£
718,257
245,530
(12,422)
951,365

17 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 £246,207 (2021: £223,558). At the balance sheet date the amount due from Mountsorrel United Charities was £5,000 (2021 - £5,000).

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

Page 17