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← Mountsorrel Church Of England Fund

2023-12-31-accounts

Charity Registration No. 1041743

MOUNTSORREL CHURCH OF ENGLAND FUND TRUSTEES' REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

MOUNTSORREL CHURCH OF ENGLAND FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees D Allard
D Bird
A Evans
I Evans
N Harrison
G Lee
J Lowe
J Owen
M Rowley
A Scott
J Scott
D Winsor
Charity number 1041743
Clerk to the trustees Kate Scranage
Contact details kate@mountsorrelcsf.org.uk
Principal address PO Box 11158
Leicester
LE8 8WH
Independent examiner Somerbys Limited
30 Nelson Street
Leicester
LE1 7BA
Bankers Natwest Bank Plc
Market Place
Loughborough
Investment advisors Brewin Dolphin Ltd
Waterfront House
Waterfront Plaza
35 Station Street
Nottingham
NG2 3DQ

MOUNTSORREL CHURCH OF ENGLAND FUND

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the accounts 9 - 15

MOUNTSORREL CHURCH OF ENGLAND FUND

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their report and accounts for the year ended 31 December 2023.

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 are 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 provides quarterly written reports.

The charity works closely with Mountsorrel United Charities as its principal funder.

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.

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

(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 under Clauses 41(1) and 41(2) 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 2023 the required sermons were preached on 1st January at Mountsorrel Christ Church and 12th November at Mountsorrel St Peter’s.

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.

Achievements and performance

Meetings

The board of trustees met three times in 2023 at the Mountsorrel Parish Rooms. The trustees received reports to each meeting on income and expenditure and investment performance.

MOUNTSORREL CHURCH OF ENGLAND FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Grants – Clause 41(1)

Expenses of £4,470 were paid in 2023 (£4,354 in 2022) as incurred by the Priest in Charge of the United Benefice of Mountsorrel.

Grants – Clause 41(2)

The Trustees made payments totaling £14,774 in 2023 (£14,137 in 2022) 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 2023 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:

i) Grants to the PCC of Mountsorrel Christ Church

The following grants were made in 2023:

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

The following grants were made in 2023:

iii) Joint grants to the benefice of Mountsorrel Christ Church and St Peter

The following grants were made in 2023:

iv) Improvements to the Vicarage

No grants were made in 2023.

Trustees

The Charity Commission scheme dated 1 September 1993 stipulates that there should be twelve trustees who are communicant members of the Church of England, appointed as follows:

MOUNTSORREL CHURCH OF ENGLAND FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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:

Appointed by the PCC of Mountsorrel St Peter:

When appointed, all new trustees receive copies of the governing document, 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.

Financial review

Financial position

The charity’s total income for the year was £135,715 (2022: £262,033). Expenditure totaled £134,770 (2022: £170,125), resulting in a net surplus of £35,487 including the gain on revaluation of investment assets.

At the year-end, the charity held total assets of £986,852 (2022: £951,365), 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 onethird 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.

MOUNTSORREL CHURCH OF ENGLAND FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Investments

The charity held investments valued at £751,637 at the year-end (2022: £718,257), which represented accumulated income funds.

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

Reserves Policy

As at 31st December 2023, the charity held free reserves of £986,852.

Reserves are required to enable the charity to maintain its current activities and to meet its long term aims. Free reserves are the part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes. It is the policy of the charity to maintain free reserves of:

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 accordance with its stated policy.

The Reserves Policy was reviewed during the year. 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. The trustees are mindful that that should substantial building work to either of the churches be required, the cost of this is likely to be significant. Consequently, the trustees have devised a reserves policy that ensures that they would be in a position to meet their objects effectively should such a need arise.

The majority of the charity’s free reserves are held as investment assets in order to preserve the funds required and to generate additional day to day income for the charity.

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 the future

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 plan to review their investment management arrangements and will seek to diversify their investment holdings in order to protect and maximise the investment assets.

MOUNTSORREL CHURCH OF ENGLAND FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts 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 year.

In preparing these accounts, the trustees are required to:

continue in operation.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the board of trustees

D Winsor

Chair and Trustee Dated: 10 July 2024

MOUNTSORREL CHURCH OF ENGLAND FUND

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MOUNTSORREL CHURCH OF ENGLAND FUND

I report on the accounts of the charity for the year ended 31 December 2023, which are set out on pages 7 to 15.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

Somerbys Limited

30 Nelson Street Leicester LE1 7BA

Dated: .........................

MOUNTSORREL CHURCH OF ENGLAND FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Incoming resources from generated funds
Donations and legacies
2
Investment income
3
Other incoming resources
4
Total incoming resources
Resources expended
Costs of generating funds
Investment management costs
Net incoming resources available
Charitable activities
Charitable expenditure
Total resources expended
5
Net incoming resources
Other recognised gains and losses
Gains/(losses) on investment assets
Net movement in funds
Fund balances at 1 January 2023
Fund balances at 31 December 2023		 2023
£
105,392
20,901
126,293
9,422
135,715
2,791
132,924
131,979
134,770
945
34,542
35,487
951,365
986,852		 2022
£
246,207
15,826
262,033
-
262,033
2,831
259,202
167,294
170,125
91,908
(98,176)
(6,268)
957,633
951,365

MOUNTSORREL CHURCH OF ENGLAND FUND

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2023
£
8,131
241,603
249,734
(14,519)		 £
751,637
235,215
986,852
986,852
986,852		 2022
£
69,103
176,427
245,530
(12,422)		 £
718,257
233,108
951,365
951,365
951,365

The accounts were approved by the Trustees on 10 July 2024

D Winsor Chair and Trustee

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity’s governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019)”. The charity is a Public Benefit Entity as defined by FRS102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below, these policies have been consistently applied to all years presented unless otherwise stated.

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

1.2 Incoming resources

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.

1.3 Resources expended

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

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(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.

1.4 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.

1.5 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.

1.6 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.

1.7 Trade creditors

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 charity 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.

1.8 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.

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.9 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.

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 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 Donations and legacies

Unrestricted Total Total
funds 2023 2022
£ £ £
Grants and Donations
Donations from companies, trusts and similar proceeds 105,392 105,392 246,207

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

3
4
5		 Investment income
Income from listed investments
Other incoming resources
Listed Places of Worship grant
Total resources expended
Unrestricted
Funds
£
Costs of generating funds
Investment management costs
2,791
Charitable activities
Charitable expenditure
Grants made
125,654
Governance Costs
1,740
Clerk's Fees
3,563
Sundry Expenses
928
Xero Subscription
94
Total
131,979
134,770		 Total
2023
£
2,791
125,654
1,740
3,563
928
94
131,979
134,770		 2023
£
20,901
2023
£
9,422		 2022
£
15,826
2022
£
-
Total
2022
£
2,831
162,215
936
3,708
341
94
167,294
170,125

Governance costs includes payments to the auditors of £1,740 (2022: £936) for audit fees.

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6 Grants payable

Saint Peter's Church
Christ Church
Joint grants to Benefice
Payment towards Stipend
Priest in charge expenses
Children and families workers/Youth worker		 Total
2023
£
9,471
15,677
19,388
14,774
4,470
61,874
125,654		 Total
2022
£
6,415
82,450
9,512
14,137
4,354
45,347
162,215

7 Trustees

No trustees (or any persons connected with them) received any remuneration during the year.

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

8 Employees

There were no employees during the year.

9 Taxation

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

10 Fixed asset investments

Fixed asset investments
Listed Cash Total
Investments Deposits
£ £ £
Market value at 1 January 2023 701,246 17,011 718,257
Disposals (189,171) (166,039) (355,210)
Additions 164,877 174,831 339,708
Change in value in the year 48,882 - 48,882
Market value at 31 December 2023 725,834 25,803 751,637

The historical cost of the investments as at 31 December 2023 was £729,193 (2022: £745,998).

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

11
Debtors
Amounts owed by connected undertakings
Other debtors
12
Creditors: amounts falling due within one year
Grants provision
Accruals		 2023
£
5,000
3,131
2023
£
7,500
7,019
14,519		 2022
£
5,000
64,103
2022
£
7,441
4,981
12,422

13 Unrestricted funds

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources Other Balance at 31
January resources Expended recognised
December 2023
2023 gains/(losses)
£ £ £ £ £
General 951,365 135,715 (134,770) 34,542 986,852
951,365 135,715 (134,770) 34,542 986,852
Movement in funds
Balance at 1 Incoming Resources Other Balance at 31
January resources Expended recognised
December 2022
2022 gains/(losses)
£ £ £ £ £
General 957,633 262,033 (170,125) (98,176) 951,365
957,633 262,033 (170,125) (98,176) 951,365

MOUNTSORREL CHURCH OF ENGLAND FUND

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14 Analysis of net assets between funds

Fund balances at 31 December 2023 are represented by:
Investments
Current assets
Creditors: amounts falling due within one year
Unrealised gains included above:
On investments
Reconciliation of movements in unrealised gains
Net gains on revaluations in year
Unrealised gains at 31 December 2023		 Total
£
751,637
249,734
(14,519)
986,852
48,882
48,882
48,882
48,882

15 Related parties

During the year the following related party transactions occurred:

Mountsorrel United Charities

Mountsorrel United Charities 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 (net of costs), which is paid over on a regular basis.

During the year, Mountsorrel United Charities allocated Mountsorrel Church of England Fund investment income of £105,392 (2022: £246,607). At the balance sheet date the amount due from Mountsorrel United Charities was £5,000 (2022: £5,000).

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