Charlty r•gistration number 1063214 Company reglstratlon numbor 00205248 (England and Wales) THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED CONTENTS Page Trust Director5. report statement of trust directors. resp(Thibiliti8S 12 Independent aLMlltorfs report 13-15 Statement of ffinandal activities 8alance sheet 17-18 Statement of cash flows 19 Notes to the financial statements 20-37
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trust directors present their annual report and financia ststements for Ihe year ended 31 December 2023. The financAal statsments have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trusfs goveming document the Companies Act 2006 and 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard apklicable in Ihe UK and Republic of Ireland IFRS 102) (effective 1 January 2019)..
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and actlvltles Our Alms The objects of the charity as set out In the chariws Memorandum ofAssociation are reprOduCd below.. To advance the Chrlstian rel10n and propagate the Gospel in accordance wilh the docti7nes, prinapl8s and usages ol the United Refomied Church with paclar respon&"bilrfy for the Wales Province of that Church. Our Objectives and Public Beneflt sLament Our obj8Ctives are set to reflect our faith and communmy aims. Our objectives and activities are r8vi8W8d regularly in conjunction with the United Refomied Church National Synod of Wales to 8nsurè that they continue to reflect our 8ims. In carrying out this review the directors have considered the Charity Commission's guidance on public benefit and its supplementary public guidance on the advancement of religion for public benefit. considering that it stratifies both the requirements for 'benefiV and 'public' aspects. stratagles The Trust seeks to devélop strategies that suppcfft the work of the URC National Synod of Wales within thè parameters of the objects of the charity as OLrtlin8d wlthin the Relationship Paper referred to above. The TnJ5t acts as a custodial trustee for the assets of the URC Nalional Synod of Wales and its constituent churches. It holds both propety and mon8tary assets on behalf of the National Synod and Individual churches. The investment policy of the Trust Company is detai18d in a spe(afic section Vthin this Annual Report. Currently, the Trust acts on behalf of 86 churches out of 89 churches wtthin the National Synod area with regards to their property ass8ts ar)d actively manages 31 church funds undèr the umbrella of COIF funds provided by CC LA. The Trust further manages 13 National Synod Funds across 23 investment accounts detemined by the Trust Investrnent Policy. The Trust provides rest)urces for employing stsff promote ecumenical relations across communitEs', religious developments within rural communities: training and development officers who help people who come to churches study religious teachings, practiC8s and scriptures. property management and legal compliance support, together with adminlstrative support for the National Synod. Resources also support work with Children and Young People across Wales. A Church Related Communty Worker SUPFKlrts the Swansea Region. Trusl resources are used to support 14 URC stipendiary ministers of religion to serve their local comrnunits'es ihrough the provision of in-service training and housing support. These ministers support chaplaincies in hospitals, universities. visits to schools and prisons in various place5 in Wales. The ministers are ably supported by: 3 URC stipendiary ministets in roles not based within the Synod or its Churches 1 URC church related comrnunty worker 4 URC non-stipendiary ministers 22 ministers from other denominations working in Lal Ecumenical Projects (LEP) 37 URC retired ministers Together with their local Elders and Congregations (2022 fvJures - 1.228 members, with 552 adherents and 100 connected Young People) in their work. Some 72% (511T2) of our Churches have less than 25 members. The resources of the Trust effectively underpin the engagement of local MmunitieS by their local congregations in delivering opportunities for education and welrare support. This seprfice is freely available for all throughout Wales.
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and perlomiance The Trust carries out a wide range of activities in pursuan of its Charitse aims thal are open to all. The Directors consider that these activities detailed below. provide public benefft both to those who worship within URC churches in Wales and the V•llder comrnunities served by these churches. In assessing the perfomiance of the charity. the Directors seek to link progress wtih the Synod defined priorities with the activities they approve within their meetings. The majority of decisions taken by Ihe Directors are made upon receipt of resolutions from Churches, which reflect work based within local communities. This work connects with the agendas of Soual Justice, Health & Welkbeing together with Regeneration and Employment. The release of resources held on behalf of local congregation5 as a custodial trustee is dearly linked to local community-based work where there is evidence of need not being met currenuy. Listed Buildings The Trust acts as custodial trust8e for 29 Listed Churches {1- Grad8 1, 4- Grdde 2.. 24 - Grade 21. together with a further seven churches in Conservation Areas. The Synod Property Officer diredy supports the work of these churches. Qulnquennial Inspections for Listed Bulldings The Trust has informed those churches who are advised under legislation to organize Quinquennial Inspections and receives a copy of the report when the inspection is complete. The Trust has placed a centralized 3-year contract with Caroe & Partners Architects after undergoing a tender exercise. Affordable Housing Policy The Synod's Policy on Affordable Housing encourages Churches looking to rfrdevelop their sites to consider the provision of affordable housing, where there is a demonstrable local housing need. The Trust continues to affirm this policy, a5 being in line wth their Charitable Objects regarding the disposal of assets and ensures that an exploration of this is undertaken for every disposal of church building. Currently one redundant Church sile - Christchurch, Fairwater, Cardiff finally completed in late 2023. strategic Development Work for the Natlonal Synod of Wales The Trust providéd training support for the National Synod and its constituent Boards to review their work and decide underlwng priorities for the year. through the resources that it holds. The Trust is activety supporting the identified priorities of-. Serving Communilies, Transforming Injustice. Sustaining the Environment, Working with P8thers for the Common Goc#J and Prodaiming the Gospel for all. Support to Individual Churches All churches in the National Synod have been supported in their work by staff employed by the Trust v4ho ar8.. Synod Clerk10.8 FTE). Property Officer (0.6 FfE), Children and Youth Development Officer ICYDOI (1.0 FTE), Moderators PA & offi Manager (1.0 FTE). Finance Support (0.6 FTE). Meeting Support 10.3 FTEI and a Safeguarding Officer10.6FTE). In 2023, the Trust has been able to support the development of Comrnunications and Social Media work via a Consultant that was appointed following an application and interview process. The Synod has appointed an Ecumenical and Interfaith Post {0.5 FTE) together with a Training and tÈvek)pment Post {1.0 FTE). Both these posts will be filled from Stipendiary Ministry Deployment Totals with the Trust providing housing and expenses support. This is well within the current budget totals. The Trust furth8r supports the wk of the Synod through a Service Level Agreement with a company for Finance and Governance support, whid) equates to 0.8 FtE. The development of activtties by churches to promote greater engagement by their local communities are actively led. encouraged and supported by staff and Trust Officers. Partnerships with other charrtable organisations are actively sought to further ¢)pportunities for the provision of amenities for the benefit of all.
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Grant making Pollcy The Trust has adopted application procedures for those Funds that offer grants lo local churches b) support different aspects of thelr work. Th8 funds that have specific application procedures are.. Manse Fund, Misslon Developm8nt Fund, Daphne and Belhan Jones Memorial FU1. Lmngstone Trust and the Osbom8 Resource5 Fund. In addition, the Pembrokeshire Legacy custodial fund which is held on behalf of church8s in Pembrokeshire has its own application proc8dure. Volunteers Trust Directors together wlth Members of Finance and Propety Board (with whom they meet ccFterrnin¢Thtslyl are all volunteèrs. Transactlons During the past year, the DireCtS have enacted the following transactions: Manse Sales Bumside, 1 Garden Suburb, Uanidloes Mansè Purchases None Church Sales Christchurch Fairwater Froehold Transfer 53 Newton Road. Mumbles. Swansea Assot Transfer Rosemarket Graveyard, Pembrc&eshire Deeds of Covenant 122 Charles Street, Milford Haven High Street, Bagillt, Flintshire Engagement wlth National Organisations Officers from the Trust maintain appropriate links with the Welsh Govemment and CADW via CYTUN and their Propety Officers meeting. together with membership of Welsh Historic Places of Worship Forum. The Trust is a member of th8 Heritage Nelw(Kk From a UK perspgctivg, the Company Secretsry is also the Secretary for URC Resour Sharing Task &oup and the Property Officer is a member of the URC PLATO Group. Membership of these groups allows the Trust to be kept infomied about issues and developmenl that might affed the work of th8 Trust, logether with an ability to participate in relevant consultations, forwarding views that ar8 in sympathy with the Trust's objects. FinancTal review Incoming unrestricted funds totsled £866.319 (2022.. £998.228). The net incoming unrestricted surplus for Ihe year ended 31 December 2023 amounted to £633.104 {2022: deficit £28.707). which indudes a gain on investments of £381,319 12022= £521.117 loss). This surplus Ineased the cumulative unrestricted funds to £9,625,232 (2022: £8,992.128). Induded within unrestricted funds arè designated funds of £6,145,601 (2022.. £5.967,790). The total restricted incoming resources amounted to £17,980 (2022: £22,287). Expenditure from restricted funds of £37,823 (2022= £48.662) resulted in net restricted deficit of £19.843 (2022: £26,375 deficit), before investrnent gains of £9,085 {2022'. £16,443 loss).
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The total endowment incoming resources amounted to £4,378 (2022.. £4.713). Expenditure from endowment funds was £nil (2022: £230). before investment gains of £13,468 (2022.. £20,785 loss). The Irustees recognise the need to hold reserves to help to continue the principal objects of the charity should the level of funding fall. The level of free reserves at the balance sheet dale amounted to £3,461,33512022- £3.055,574) which is equivalent to just over 80 months op8rating costs. The balance on the reslricled funds was £134,80012022 £145,558) and on endowment funds was £182.286 (2022.. £164,440). The Trust Executive Council (in conjunction with the Synod Finan and Property Board), continues to implement a Ihree-year rolling budget strategy that is designed to maintsin a balanced budget position, whilst strengthening th8 underlying position of the Trust finances and achieving the strategic priorities for the United Reformed Church National Synod of Wales. Targets for this asped of work continue to be consistently achieved and tt is pleasing to record that the Trust relumed lo a surplus posilion. Prlnclpal Rlsks and Uncertainties The Directors have worked in the medium term to secure the stability and sustainability of the work of the Trust via a balanced budget supported by resolutions from the United Refomied Church National Synod of Walès Synod Meeting, which has re-affimed this underlying principle for all work. The Directors note that a signffjcani percentsge of income is derived from the United Refomied Church Inter Synod Resource Sharing PrOsS (ISRSI, which is a voluntary inter-synod sharing proces5, currendy managed on a three-year rolling basis. It is r8cognised that this process is entirely voluntsry and relies on the good-will of all ihe participating Synods, it being highly unlikely that this type of support would cease in the short to medium tem) as a buffer of £300.000 is retained within the voluntsry scheme. In the event of ISRS ncrt operating successfully, the United R8fomed Church do8s have an emergency scheme available to support Synods in their operations. In the event of neither being available to support tha Trust. the Directors have moved to mitigate the risk of any perman8nt ending of this process by establishing a clear Reserves Policy to deal with this unlikely eventuality, which covers three months opèrating costs and redundanw costs. Lay staff employed by the Trust are now members of an AON defined contribution pension sch8me, w+th the United Reformed Church Final Salary Scheme operated by the Pensions Trust being closed to new contributions from February 2023. A note dsewhere in the annual accounts explains the position. The Trust's contrgent obligation has been quantified as part of a one-off exercise connected with the deficit reduction plan, bul there is not currently any expectation that a cessation event that would trigger such an obligation will ari*, particularly as the latest triannual valuation (September 2019) wits the scheme in surplus. The URC Minist8rs Pension Scheme following a recent triennial review is in discussions with the Pensions Regulator as to how it is to manage both its small rrent deficit and future contributions. Whilst the employer for this pension Scheme is the Central URC Trust body, there has aayS b88n an expectation that the family related Synods and Trust Companies will sUPPOrt calls for additional finance when the pension scheme requires them. The Pensions Regulator is seeking fimier legal guarantees in this respect and the Trust Company has needed to be part of the 'family solution, that the Pension Regulator accepted. This might be considering a rg]uest to provide some form of guarantee against fvture calls on funding on assets owned by the Trust or a straight cash sum. The Trust Directors have been fully briefed by the Company Secretary on the issues and range ol responses possible. Consultations continued through 2021 and resulted in a one off contribution to deficit of £500,000 at the end of 2021. This payment represents th8 contribution of Wales to underlying deficit in line with the same principles that underpin the ISRS process. It is not anticipated that any furth6r calls wil be madè on Trust finances in respect of thls scheme.
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Future Pension Schemes At the 2021 URC Generdl Assembly resolutions yre passed that allowed the Central URC to explore replacement schemes and options. During 2022 thes8 conversations continued and new defined contribution schemes were drafted for both the Lay and Ministers sMeS. The change over date for these schemes was the 28 February 2023. There are contingent liabilities for8s88n with Ihes8 changes. Risk Managemént The directors have assessed the risks the charity faces and have drawn up a risk matrix which identifies the major risks by areas of activty, the nature of these risks. the likelihood of the risks happening and the measures taken lo manage them. This Risk Matrix underwent a major review during 2018, to whith the Directors and the Boards of the Synod contributed. The Directors are satisfied that systems are in Flace, or arrangements are in hand to manage the risks that have been identtfied. In particular. insurance cover is in Pla and the finances of the Trust Company are reviewed regulady through quarterfy management accounts thal are produced extemally. Proposals to update the model which have been referred to in previous Reports were actioned towards the end of 2023 via support from Azets ourAccountants. A draft model is due to be present8d to the Trust in 2024. Covid 19 Since 2019 year end. the world has been subject to a global pand6mlc caused by Coronavirus. Following on from the emergency funding prov*Jed by both the grant scheme and re-purposing of some Mission Development Fund it was agreed that the £100,000 from that Fund by made available to the Regional Pastoral Comrnittees to bring foNard schemes for providing digital worship. During 2022 further schemes were approved for support from this fund. Surprisingly again, contributions from Local ChUrdS exceeded sligmly the target set for 2023 for Ministy and Mission contributions. Both Synod and Trust are extremely p18ased as this is the third consecutive year that our target ci)ntribution to C8ntral costs has been achieved. From 8 financial perspective. th8 pandemic still has had litue effect on the income of the Trust. ISRS continu8S to be received and the figures pledged for 2024 are in line with l)udget requirernents. Investments continue to confound predictions although the Investment Pdicy of the Tnt in moving into Ethical Investments for the majority of its invested funds has proved a very prudent one, as these funds tend to be less volatile stocks. Reserves Policy The Executive Council maintains a strategic reserve sum thal would cover 3 months operating costs, together with closure costs in the event of the Trust being wound up. This sum is held separately with Eden Trée Investment Management. All designated and endowment funds are consKlered restricted by the Trust Directors and are not available for use as unrestricted income. Unrestricted funds are only held within General Fund.
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Investment Policy and Perfomiance The Trust undertook a review of its investment policy in 2015. seeking specialist advice from CCLA This confirmed that the mix of sp8cialised equity. fixed interest and property investment, designed for the charity sector, met the requirements to generale both income for revenue purposes and capttal growth lo mitigate the effects of inflation. This r8vised policy was implemented during 2016 with an increase in /0 retums on investments. During 2018 the Trust took advantage of an offer from CCLA to convert Charities Investment Fund accounts into Charities Ethical Investment Fund. In 2019 the Synod {following the resolution of the United Reformed Church), voted to request that the Trust dislnvesl from Fossil Fuels at the eadiest opportunity. In December 2019 CCLA our principal investnEnt house indicated that all tts ethical funds had disinvested from Fossil Fuels. Eden Tree and Purpleshoots were already disinvested. Given the vc4atility that the Pnjperty Sector has seen which led to the suspenslon of dealing during the Pandemic, the Trusl will review its investmènt in Property Funds in early 2021. with a view to converting to ethical non-fossil fL+el investments. The Trusl has made a decision to disinvest from the Propety Fund and wll be seeking to open an Ethical investment account with Brewin Dolphin who have a local office in Cardiff. For the year under review there was a nel increase on revaluatr>n of Trust inveslmenls amounting to £403.872 {2022 nel decrease: £558,345). Social Investment The investment with Purple Shoots (Charity Number 1155385 Company Number 08603690) is regarded as a social investment supporting communities in deprivation through Self Reliant GroLJPS in Employment and Micr business loans in Ihe bottom 25°A of the Welsh Index for Multiple Deprivation. The investment also r&um5 markel rate interest and hence is referred io above. Funds In deflclt There are no funds that are in deficit. Connected Charities The Trust is connected to member churches. most of whom are expted charities. Further details can be obtained from the Synod Office. None of the assets or liabilities of these bodies are incorporated in the accounts as the Trust is not the beneficial owner and there is neither parent nor subsidiary relationship. Th8 Trust acts as trustee on behalf of most of the United Refomied Churche5 in Wales (which hav8 similar objects io the Trust) holding funds and investments (which are kept separat8 from Trust Funds) on their behalf which have a valu& of around £1.440,128 {2022 £1,331.768). All of these funds are h8ld with professional inv8Stment managers. The following churches have custodial accounts with the Trust: COIF Ch8ri1ies Deposit Fund Trinity Bargoed A13- Mold B05- Barham B49 - Crane Street Church. Pontypool F19- Tabemacle URC, Rhayader (outside Trusts) B16 - Bailèy Street Uniting Church E17- MDF St John's Tenby E08- MDF Christchurch COIF Chariti6s Ethioal Investment FundAccumulated A26- MDF Rivertown Shotton A04- MDF St Johns Flint
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 C14- MDF Canton Uniting A08- MDF Tabernacle Holywell B36- Hanover (South Korea Church Grant) A21- Rhos on Sea H10- Upper Chapel C38 - Ab8rtridwr (Investment) Pembrokeshire Legacy MDF- Sketty COIF Chaithès Ethical Investment Fund Incom6 Units C38 - Ab8rtir (Income) 826- Libanus Ebbw Vale r8 Tabernacle Wallace Family Memorial Fund A04- St Johns Flint Trinity Bargoed F25- Glasbury {H06- Maesyronnen> Star Street Congregational Chapel (URC name: Trust prOrty Held ICW Star Street) John Humprheys Memorial Fund Work continues. in conjunction with Church House staff. on developing the common database that holds a range of infomiation - personnel. property and contacts in a safe secure doud location. Th8 Leadership Group in conjunction wth the Synod Support Team is still spending time considering what Church need in the way of direct supporL There is a particular focus on conneding and supporting the local communities that United Reformed Churches are situaled in. with mernbers of the Synod Team regularly visiting group of chuheS across Wales. The Trust is keen to examine further ways of developing its charitabl8 objectives and will continu8 to eXOre innovative ways to achieve better use of resources for beneficiaries. Structuroi governance and management Governing Document The United Refonned Church (Wales) Trust Company Limrted is a charitable company limited by guarantee incorporated on 11 April 1925 and registered as a tharity on 5 July 1997. The cornpany was established under a Memorandum of Association which established its objects and powers and is govemed under its Artides of Association. Following the acquisition of the Assets and Liabilities of the United Refomied Church Natlonal Synod of Wales by transfèr on the 1 January 2W9. these were reviewed and revised in June 2009. Oryanisatlonal Structure The Directors are responsible for the general cA)ntrol and management of the charity with the Company Secretary and Assistsnt Company Secretary. The Directors give their time freely and receive no financial benefits other than the payment of expenses. The Dir8Ctors meet as a body quart8dy a1 are respcm5itAe for all decisions taken in relation to running the TTUSt Company, the facilities and activities provided by thè charity. To assist in the smooth running of the charity the directors work in conjunction with the United Reformed Church National Synod of Wales Meeting and th8ir constituent Boards and CouncAIs. The relationship beeen the United Refomed Church (Wales) Trust Company and the United Refomied Church National Synod of Wales are defined within a relationship document that details Ihe responsibilities of each organisatlon regarding finance, personnel and governance. Policy dev81opment promotes continuity of charitable purpose acros5 both organisations.
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Boards are set up for Finance & Propety, MIsorn & Discipleship, together with Synod Pastoral Committee, Synod Support Team meeb.ng and Leadership Group. The work of these boards and councils are reported back to meetings of the Trust Executive Council (which meets jointly with the Finance and Property Board where ther8 is some ccktemiinus of members across both dIes). There is also a Synod Office Management Group. These boards and groups have a coordinated pattem of meetings with meeting support provided to ensure continuity and consistency of decision making. The Leadership Group holds the remit for a Strategic View of the organisation (the Synod) and its work. The Trust seeks lo provide resources to support that work. The Company Se¢tary is an ex-officio member of the Finan and Property Board, Synod Support Team Meeting and a memb8r of the Leadership Group. Directors and Officers of the company are represented on all the Boards. The day-to4ay management of the Trust Company. the facilities and projects are delegated to staff. who report on a regular basis to the Company Secretary. Recrultment and appolntment of Dlreclors The United Reformed Church National Synod of Wales providgs up to two thirds of the Trust Company directors. The Synod Meeting is responsible for conducting its own process of nominating Directors for Ihe Trust Company to approve th8ir appointment. The Directors themselves. wruit the remaining third seeking to ensure that necessary expertise in finance, propety management. employment matters. together with company and charitsble legislation are present on the Trust Executive Council. Induction and Irainlng of Dlrectors New directors ale introduced to their new role, given copies of apprwiate documents and material from the Charity Commission on their role as a truste8. All directors have the opportunrty to attend training that is relevant lo their role as directors. Training is provided on a regular basis to update Directors on both generic and specrfic issues. Training was d81ivered during the year on Safeguarding. Training was also given on supporting Mission Development Fund applications from Churches in their d8v8lopment stag8. Pay policy Pay levels are determined in accordance with rates agreed for staff at the United Refomed Church - Church House site in London, where the United Reformed Church Trust sets the levels of remuneration. During 2016 a pay review was undertaken and a new structure based on the NJC Local Govemment Scales was inlroduced that placed all paid posts according to their scale, complexity. skills level and SpOnsIbl11ty al specific points on the NJC Scale. Posts in the current slaffing structure continue to linked to this pay spine. The TUPE Transfer of the CYDO post was affected from URC Trust {Church House London) to the Trust on the 31 December 2016, there were no additional liabilits'es attached lo this transfer. The Company Secretary is a voluntary role. However, as approved by the Trust Executive Council, the postholder provides paid consultancy services to the Synod via his company Atherton Consultancy Services Limited. See note 8 for details. Executive Council Declaration The Executive Council confirms that all nessary steps have been taken to make themselves aware of matter5 which would be r81evant for audit purposes and have communicated such matters to the auditors. They also confimi that, so far as they are aware. at th8 date of approval of the financial statements th8re ar8 no matt8rs relevant to the audit of the financial statements which have rKJt been disdosed to the auditors.
THE UNITED REFORMED CHURCH IWALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Reference and Adminislralive Details Charlty Namo The United Refonned Church (Wales) Trust Company Limited Charity Number 1063214 Company Number 00205248 Reglstered Offlce The United Reforrned Church Minister Road Cardiff South Glarnorgan CF23 SAS Company Secrétary Mr ChristopherAthorton Assistant Company Secretsry Ms Claire Bc*)t Trustees Mr lan Lloyd-Pary Chairperson: Synod Appointed Mr Colin Grimes- TrustAppointed Ms Sandra walla - Synod Appointed Revd lan Kirt)y- Synod Appointed {deceas8d 24108124) Mrs Diane Moverley - Synod ApFointed Mr Chris Bryne - s0d Appointed (resigned 16109124) In attendanrA Revd Simon Walkling- modera (until 30108123) Ms Magan Pri- Synod Clerk Ms Claire BtY)t- Property Offir Solicltors Hutchinson Thomas Pendrll Court 119 London Road Neath SA11 ILF Bankers CAF Bank Kings Mill West Malling Kent ME19 4TA Investmonl Managers CCLA Investment Management Limited 80 Cheapside London EC2V 6DZ 10-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED TRUST DIRECTORS. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Eden Tree Investment Management Ltd Beaufort HOL Bnjnswick Road Gloucester GL1 1JZ Purple Sh(y)ts Connect St Catherine's Church Upper Church Street Pontypric CF37 2UF Auditors Azets Audit Services Ty Depw, Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB Managemont Accountants Williams Ross Limiled 4 Ynys Bridge Crt Gwaelod Y Garth CF15 9SS Funds held as custodian trustee The Trust acts as a custodial trustee for the assels of the URC National Synod of Wales and its constituent churches. It holds both property and monetary assets on behalf of the National Syncd and individual churches. Auditors Following a tendering exercise Azets were appointed Auditors for a thre&y8ar peric*J beginning with the Audit for 2019. This was renewed for a further three year period at the TrustAGM. The trust directors, report was approved by the Board of Trust Directcfs. Mr C Grlmes Trust Director Dated.. 11
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED STATEMENT OF TRUST DIRECTORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The trust directors, who are also the directors of The United Refomed Church (Wales) Trust Company Llmiled for the purpose of company law, are responsible for preparing the Trust Directors. Report and the financial statements in accordance wSth apICable law and United Kingdom Accounting Standards (United lQngdom Generally Accepted Accounting Practice). Company Law requires the trust directors to prepar8 financial statements for each financial year which give a true and fair view of the state of affairs of th8 trust and of the incA)ming resources and application of resources, including th8 incom8 and expenditure, of the charitable rnpanY for thal year. In preparing th8s8 financial statements, the trust directors are required to: - seled suitable accounting pdicies and then aptAy them consistenlly; - observe the methods and principles in the Charities SORP.. - make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been fdlowed, subject to any material departures disdosed and explained in the financial statements: and prepare the financial ststements on the golng concem basis unless it is inappropriate to presume that the trust will continue in operation. The trust directors are responsible for keeping adequate ac(r)unting records that disdose with reasonable accuracy at any time the financial position of Ihe Iwst and enable them to ensur8 that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 12-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUST DIRECTORS OF THE UNITED REFORMED CHURCH IWALES) TRUST COMPANY LIMITED Oplnlon We have audited the financial slatements of The United Reformed Church (Wales) Trust Company Limited Ilhe 'trust') for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet. the stat8m8nt of cash flows and notes to th8 financial statements. induding significant accounting policies. Th8 financial reporting framework that has been applied in their preparation is applicable law and Unit& Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicabl8 in the UK and R6public of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slatements: give a true and fair view of the state of the charitable compan$ affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended. have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practica" and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further deribed in the Auditorfs responsibilities for the audit ol the financial statem8nts section of our repc*t We are independent of the trust in accordance wilh the ethical requirements that are relevant to our audit of the financial ststements in the UK, induding th8 FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evidence wè have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have conduded thal Ihe trust directors. use of the going concern basis of accounting in the preparation of the financial ststements is appropriate. Based on the work wa havè perfomed, we have not identified any material uncèrtainties relating lo events or eondilions that, individually or collectively. may cast significant doubt on the trust's ability to continue as a going concem for a period of at least twelve months from when the finanaal statements are authorised for issue. Our responsibilities and the responsibilities of the trust directors with respect to going concern are deSbed in the relevant section5 of this report. Other Inforniatlon The other information comprises the information induded in the annual report other than the finarla1 statements and our auditor's report thereon. The trust direct(Ys are responsible for the other infomiation contained within thé annual report. Our opinion on the financial ststements does not cover the other infomiation and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, n doing so. consider whether the other infomiation is materially inconsistent with the financial statements or cxjr know18dge obtained in th8 course of the audit, or othepNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are reqUId to detemin8 whether this gives rise to a rnaterial misslalement in the financial statements themselves. If. based on the work we have perform8d. we condude that there is a material misstatem8nt of this other inf0Mtion. we are required to report that facL We have nothing to report in this regard. Matters on which wo are roqulred to rèport by exception We have nothing to report in respect of the following matters in relation to which the Chariiies (Accounts and Reports) Regulalions 21)08 require us to report to you if, in our opinicn: the information given in the financial ststements is inconsistent in any material respect with the trust directors, report.. or sufficient accounting records have not been kept,. or the financial Statements are not in agreement with the accounting records" or we have not rèceived all the information and explanations we require for our audit. 13-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUST DIRECTORS OF THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED Responslbllltles of trust dire¢tors As explained more fully in the 5tstement of trust difectors, responsibilities. th8 trust d1ctorS, who are also the directors of the trust for the purpose of company law, are responsib18 for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trust directors determine is nec8ssary to enable the preparation of financial statements that are free from material misstat8ment. whether due to fraud or error. In preparing the finanoal statements. the trust directors arè responsible for assessing the trust's ability to continu8 as a going concem, disdosing. as applicable, matters related to going concern and using the going concem basis of accounting unless th8 trust d1ClorS either intend to liquidate the charitable company or to cease Operati$, or have no realislic altemative but to do so. Audltor's responslbilllies for the audit of the flnanclal statsments We have been appointed as auditor under section 144 of the Charities Art 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objeclives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or eOr, and to issue an audilorfs report that indudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) wlll always detect a material misststement when it 8XiSts. Misstalernents can arise from fraud or arror and are considered material if, individually or in the aggregate, they could reasonably be expecled to influence the economic decisions of users tsken on the basis of these financial statements. A further d85CriPtlon of our responsibilities is available on the Financial Reporting Council's website at: httPS.'II www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditovs reporL Extent to which the audit was consldered capable of detecting irregularitles, Including fraud Irregularit18s. including fraud, are instances of non-compliance with laws and regulation5. We design procedures in line with our responsibilities. outlined above and on the Financial Reporting Council's website, to detect material misstatements in resped of irregularities, including fraud. We obtain and update our understsnding of the entity, its activities. its control environment, and likely future developments. induding in relation to the legal and regulatory framework applicable and how the entity is Cornplying with that framework. Based on this understsnding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or eOr. design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffiaent and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which induded: Enquiry of management and those charged with govemance around actual and potential Itkngation and daims as well as actual, suspected and alleged fraud., Reviewing minutes of rneetings of those charged with govemancy. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection- Reviewing financial statement disdosures and testing to supporting documentstion to assess compliance with applicable laws and regulations- Performing audit work over the risk of management bias and override of controls. including testing of journal entries and olher adjustments for appropriateness. evaluating the business rationale of significant transactions outside the ral course of business and remewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we will not deteci all irregularities, induding those leading to a material misststsment in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed ffom the event5 and transactions reflected in the financial statements, as we will be less likely io become abvare of instances of nOTrcomplian. The risk of not detecting a material misslatement resulting from fraud is higher than for one resulting from error. as fraud may involve collusion. forgery, intentional omissions, misrepresenlations. or the override of intèrnal control. 14-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUST DIRECTORS OF THE UNITED REFORMED CHURCH ALES) TRUST COMPANY LIMITED Use of our report This report is made solely lo the charitys trustees. as a body. in accordance with part 4 of the Charib'es {Accounls and Reports) Regulations 2008. Our audtt work has been undertaken so that we might State to the charity's trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To Ihe fvllesl extent pemiilled by law, we do not accept or assurne responsibiltty to anyone oiher than the charity and the charity's trustees as a body, for our audit work, for this report. or for the opinions we have fomed. A(2Y h&F Azets Audit Services 18 September 2024 Chartered Accountants ststutory Auditor Ty Depw, Lime Tree Court Cardiff Gate Business Park Cardiff United Kingdom CF23 8AB Azets Audit Services is eligible for appointment as auditor of Ihe trnst by virbje of its eligibility for appointment as audltor of a company under section 1212 of the Companies Act 2(XJ6. 15-
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THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Flxed asset5 Tangible assets Inveslments Mixed motive investrnents 13 14 15 3,628,098 4,614,909 134,000 3,628.565 4,211,038 134.000 8,377,007 7,973.603 Current a88Ots Debtors Cash at bank and in hand 16 58.136 1.556.959 26.065 1.321,304 1,615,095 1,347,369 Creditors: amounts falllng duo wlthln one year 17 {49,784) 118,8461 Net current assets 1.565.311 1,328.523 Total as8ots1è8s current liabilltles 9.942,318 9,302.126 Capilal fund$ Endowrnent funds - general Income funds Restricted funds nreslrict d fund Designated funds General unrestricted funds 18 182.286 164.440 134,800 145.558 19 6,145.601 3.479.631 5,967,790 3,024,338 9.625,232 8,992.128 9.942.318 9,302.126 17-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 The company is entiled to the exemption from the audit requirernent contained in sectK)n 477 of the Companies Act 2006, for the year ended 31 December 2023. although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirem8nts of the Companies Act 2006, for the y8ar in question in accordance with section 476. These finanaal statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statemerrts were approved by the Trust Direciors on ............... Mr C Grimes Trust Dlroctor Company Reglstratlon No. 00205248 18-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operating activities Cash generated from operatKs 25 113,607 243,673 Investing activities Purchase of tangible red assets Proceeds from disposal of tangibfe fixed assets Purchase of investments Proceeds from diswsal of investments Investment income received (1.P33) 1328.998) 639.348 (109,628) 109.628 123.841 18.308 126.418 Not cash generated from investing activities 122.048 455,076 Net cash used in financing activities Net increase in cash and cash equlvalents 235.655 698,749 Cash and cash oquivalents at beginning of year 1.321.304 622.555 Cash and cash equivalonts at ond of year 1.556,959 1,321.304 19-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Charity information The United Reformed Church (Wales) Trust Company Limited is a prlvate company limited by guarantee incorporated in England and Wales. The registered office is The United Ref<)rnied Church, Minister Road, Cardiff, South Glamorgan, CF23 SAS. 1.1 Accountlng convention The financlal statements have been prepared in accordance with the trusvs gov8ming docum8nt, the Companies Act 2006, FRS 102 'The Finanal Reporting Stsndard applicable in the UK and Republic of Ireland. ("FRS 102.) and the Charities SORP "Accounling and ReportiThJ by Charities: Statement of R6commended Practice applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and R8public of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102. The financial statements arè prepared in sterling, which is the functional cuffency of the trust. Monètary amounts In these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention and to indud8 C8rtain ffinanclal instruments at fair VUe. The principal accounting policies adopted are set out below. 1.2 Going coneem Al th8 tim8 of approving the finanrAal statements. the trust directors have a reasonable expectallon that the trust has adequate resOurS to continue in operational existen for the foreseeable future. Thus the trust directors continue to adopt the going concem basis of aco)unting in preparing the financial statements. 1.3 Charitablè funds Unrestricted funds are availaLle for use at the discretion of thè trust directors in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the trust directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statemenls. Restricted funds are subject to spectfic coThJitions by donors as to how they may te used. The purposes and uses of the restricted fijnds are set out in the notes to the financial statsments. Endowment funds are subject to Specif conditions by donors that the capital must be maintained by the trusL 1.4 Income Incom8 is recognised when the trust is legally enttued to it after any pèrfom)ance conditions have been met, the amounts can be measured reliably. and it is probable that income will be reived. Cash donations are recognised on receipt. Other donations are recognised once Ihe trust has been mtified of the donation, unless performance conditions require deferral of the amount. Income tsx recoverable Yi relation to donations received under Gtft or deed5 of covenant is rerxgnised at the time of the donation. Grants ar8 recognised in full in the year they are receivable. Investment income is induded when receNable. Legacies are recognised on receipt or othenvise rf the trust has been notified of an impending distribution, the amount 15 kni)wn, and receipt is expected. If the amount not known, the legacy is treated as a contingent asset. -20-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefi't to a third party. it is probable that a transfer of economic beneffts will be required in settlement. and the amount of the obligation can be measured reliably. Expenditu is dassrfied by activity. The costs of each activity are made up of the total of dir1 costs and shared costs, induding support costs involved in undertaking each activity. Direct costs attribulab4e to a single activity are allocated directly to that actiwty. Shared costs which contribute to more than one aclivity and support costs which are not attributable lo a single activity are apportioned between those activiS on a basis consistent with the use of reSoUrs. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cosl or valuation, net of depreciation and any impaimient losses. Churches have not been valued in the the accounts as there is no m8aningful basis on which to put a monelary value on them and no accurate information on their original cost. Manses purchased prior to the Introducti( of the s0d Manse pdicy {now adopt8d by the Trust) were excluded from the accounts due to a number of legal and other issues relating to their original purchase and eventual disposal. From 1 January 2014 they have been brought into the accounts at deemed cost of nil given the uncertainties detailed. Manses that have been purchased since the Manse policy was introduced by the Synod in 1999 have been included in th6 accounts at their original cost. These manses are depreciated as detailed below. Manses are no longer depreciated as tnjstees felt there was litue operational benefit of a material nature to be gained from continuing the exercise of depreciation. given the propertie5 are maintained to a level that is in exeess of the initial cost. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases= Freehold land and buildings Nil (2% of original cost until 2009) Leasehold land and buildings (Syrn)d Offices) 5% of original cosl Fixtures and fittings 1Ck25Yo of original cost The gain or loss arising on the disposal of an asset is determined as the difference beiween the sale proceeds and the carrying value of the assel. and is reL))3nised in the statement of financial activtlies. 1.7 Fixed asset investments Fixed asset investments are initially measured at transaction price exduding transaction costs. and are subsequently measured at fair value al each reporting date. Changes in fair value are recogni5ed in net incomel(expenditure) for the year. Transacb'on costs are expensed as inGurred. Mixed motive investments are %)cial investrnents supporting wmmunities in deprivation. Mixed motive investments are initially measured at cost and subsequently measured at cost net of any impaim)ent losses. The investments return a market rate of interest. 1.8 Impairnient of fixed assets At each reporting end date, the trust reviews the carying amounts of its langible assets to determine whether there is any indication that those assets hav8 suffered an impairment loss. If any such indication exists, the recoveratde amount of the asset is estimated in order to detemine the extent of the impairment loss {if any). 21
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinued) 1.9 Cash and cash equivahnts Cash and cash equivalents indude cash in hand. deposiis held at call with banks. other short-t8mi liquld inveslm8nts with original maturities of three mcfflths or less. and bank overdrafts. Bank ov8rdrafts are shown within borrowings in current liabilities. 1.10 Flnanclal Instruments The trust has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0th8r Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrumenL Financial assets and liabileS are offsel, with the net amount5 presenled in the financial statements, when Ihere is a legally enforable right to set off the recognised arrth)unts and there is an intention to settie on a net basis or to realise the asset and setue the liability simultsneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised $t using the effective Interest method unless the arrangement constitutes a financing transadion. where the transaction is measured at the present value of the future receipts disc¥)unted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Derecognluon of financial assets Financial assèts are derecognised only when the contractual rights to the cash Ilows from the asset expire or are settled. or when the trust transfers the financial asset and substantially all Ihe risks and rewards of ownership to another entity, or if some signtficant risks and rewards of ownership are retsined but control of the assel has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. Bask Ilnanclal Ilabllltles Basic financial liabilits'es, induding creditors and bank loans are initially recognised at transaction price unless the 8rr8ngement constitutes a financing transaction. where the debt instrument is measured at the present value of the futur8 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequenlly carried at amortisèd cosL using the effedive inlerest rate method. Trade creditors are obligations to pay for goods or servrces that have been acquired in the ordinary course of operations from suppliers. Amounts payable are dasstfied as current liabilities if payment is due within one year or less. If not, they are presented as noTrcurrent liatmlities. Trade Greditors are recognised initially at transaction price and subsequently measured at amortised cosl usin9 the effective interest method. Dorecognition of financial lialH"lities Financial liabilities are derecognised when the trust's contractual obligations expir8 or are discharged or cancell8d. -22-
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting pollcles (Contlnued) 1.11 Employee benefits The costs of short-term employee benefits are rec()gnised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused hdiday entidement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide temiination benefits. The charity's employees were members of a separately administered multi-employer defined benefit scheme. On Ihe 28 February 2023 this scheme was dosed to new contributions. For the remaining 10 months of the year. contributions were made to AON Master Trust Scheme for lay staff within the Unit8d Reformed Church as a linked employer to the United Reformed Church Trust. 1.12 Leases Rentals payable under operating leases, including any lease incentives received, ar8 charged as an expense on a straight line basis over the t8Th of the relevant lease. 1.13 Taxatlon A5 a registered charity. The United Refomied Church (Wales) Trust Company Limited is 8ntit18d to Ihe exemption from taxation in respect of income and capital gains received with sections 478489 of the Corporation Tax Act 2020 and section 256 of Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objècts purFrf)se onty. Crltlcal accountlng estimates and Judgements In the application of the trust's accounting policies. the trust directors are required to make judgements, estimates and assumpticins about the carrying amount of assets and liabiltknes that are not readily apparent from other sources. The estimates and associated assurnptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and undeflying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estirnate is revised where the revision affects lY that period, or in the period of the revision and future periCS where the revisTron affects both cuent and future periods. -23-
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THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 6 Charltable actlvlties 2023 2022 Staff costs Depreciation and impainnent Grants payable Children and youth development Trust costs 145.921 2.261 167,509 60,376 11.314 158,555 9,478 86.537 58.720 14.804 r li Training Propety costs Pr8mis&s costs Offic8 costs Staff expenses Mom pilot projed Safeguarding Prowsion for bad debts 25,769 98,300 14.836 11,956 7,718 7,070 41.259 28,424 23,227 6.182 9.377 7.695 9,427 39,504 50,000 594.289 501,930 Share of govemance costs (see note 7) 58.068 52.550 652.357 554.480 Analysis by fund Unrestricted funds Restricted funds 614,534 37,823 505,818 48.662 652,357 554,480 Support costs Support Govèrnance costs 2023 2022 Audit fees Legal and professional Accountancy costs 8.090 48,538 8,090 48,538 1,440 7,430 43,680 1,440 58.068 58.068 52.550 Analysed belween Charitable activities 58.068 58.068 52,550 Govemance costs indudes payments to the auditors of £8.090 (2022: £7,430) for audit fees. The management accountants were paid £1.440 for accountancy serV8s(2022. £1.440).
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Trust Dlrectors During the year under review travel and other out of pocket expenses of £2,435 (2022.. £9601 were reimbursed to members of the Executive Committee and tnembers of the Finance and Property Board covering all of the various duties they perform on behalf of the Trusl. During the year under review consultancy costs of £43,680 12022: £43,680} were paid to Alherton Consultancy Services Limited (owned by the Company Secretary) in relation to the provision of necessary financial and other supp(xt services to the Synod. This was agreed by the Trust Executive. No other transactions took place with the ExecutNe Committee or Finan and Property Board, as related parties, during the year under review. Employee5 The average monthly number of employees during the year was: 2023 Number 2022 Number Employment cosls 2023 2022 Wages and salaries Social security costs Other pension costs 193,288 12.212 43.634 176.365 11.018 54.362 249.134 241.745 Employees earning > £60k No employee eamed more than £60.000 during the current or prior period. Key Management Personnel The remuneration paid lo Key Management Personnel linduding salary. employers national insurance and employers pension contributions) in the year was £48,549 (2022: £67,932). 10 Other Total Total 2023 2022 Grants payable 230 230 -27-
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THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 12 Taxatlon The charity is exempt from tax on income and gains falling within seclion 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 13 Tanglble fixed assets FIhId land and buildings Leasehold Fixture5 and land and ffttings buildings (Synod Offie•sl Total Cost At 1 January 2023 Additions 3.693.464 134.633 40.094 1,793 3,868.191 1,793 At 31 December 2023 3.693.464 134,633 41.887 3,869,984 Depreciation and Impalrnient At 1 January 2023 Depreciation charged in ihe year 83,663 122.952 6,730 33.010 (4.469) 239,625 2,261 At 31 December 2023 129.682 28.541 241,886 Carrylng amount At 31 Decernber 2023 3.609.801 4.951 13,346 3.828.098 At 31 December 2022 3.609,801 7,083 3.628,565 14 Flxed asset Invèslments Listed Investments Cost or valuallon At 1 January 2023 Additions Valuation changes 4,211,038 109.628 403,871 At 31 December 2023 4,724.537 Impairnient At 1 January 2023 Disposals 109,628 Al 310ecgrnber 2023 109,628 Carrylng amount Al 31 December 2023 4.614,909 At 31 December 2022 4,211.038
THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15 Mixed motlve Invastmonts At 1 January 2023 and 31 December 2023 134.000 16 0•btor8 2023 2022 Amounts falllng dua wlthln one year. Other debtors Prepayments 48.040 10.096 17.673 8,392 58.138 26,065 17 Credltors: amounts falling duè wlthln ono year 2023 2022 Other creditors Amals and deferred income 29.486 20.298 8,867 9,979 49.784 18,846
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THE UNITED REFORMED CHURCH (WALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 The United Refonned Church Final Salary Scheme for Lay Staff The URC (Wales) Trust Company contributed a total of £43.634 (2022 - £54.362) to pension schemes during Ihe year. For the first two months contributions were made to The United Refomed Churth Final Salary Scheme. a pension scheme principally for lay staff which is administered by TPT Retirement Solutions Trust (fomerly The Pensions Trust). On the 28 February 2023 Ihis scheme was dosed to new contributions. For the remaining 10 months of the year, contributions were made to AON Master Trust Scheme for lay staff within the United Refom)6d Church as a linked employer to the United Reforn*d Church Trust. Contributions by members remained at 7.5% of pensionable salary. The most recent formal actuarial review of the closed TPT Retir8ment Solutions Trust scheme was at 30 September 2019, when the scheme had a surplus of £2,689.000. The assumptions underlying that valuation indudé.. Discount rate: 1.4% Pensionable eamings growth: 2.5% for three years. 2.7% thereafter Price inflation and pension increases- 2.55% Retirement age {active members).. 65 with rnaximum commutation Due to a onevoff exwcise funded as part of the plan to reduce the deficit, liablities as of September 2016 valuation were defined as follows for Wales - Solvency Lk3bility £652.129 TP Liability £370.398 (1.3Vo) of the total deficit. September 2019 actuarial review put the scherne in balance and no cessation events are envisaged. There are no potential future liabilities anticipated for Trust in connection with the final salary scheme. URC Mlnlst•rs Ponslon Scheme In addition to the pension costs disdosed above. grants were made to the URC Ministers Pension Scheme of £nil (2022.. £10.161). 23 Operatlng lèase commllments At the reporting end date the trust had outstanding commiknents for future minimum lease payments under norrtancellable operating leases, which fall due as follows: 2023 2022 Within one year Between two and five years In over five years 4.943 15,400 13.491 5,865 16.493 17.341 33.834 39.699 24 Related party transacti($ No related party transactions took place in the current or previous year other than those disclos elsewhere in the financial staiements.
THE UNITED REFORMED CHURCH IWALES) TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 25 Cash genorated from operations 2023 2022 Surplusl(deficit) for the year 640,192 (87,827) Adjustments for. Investment income recognised in ststement of finanaal aclivltles Gain on disposal of tsngible fixed assets Fair valu8 gains and losses on investrnents Depreaation and impaiment of tangible fixed assets (123,841) (126,418) 1157,651) 558,345 9,478 (403,872) 2,261 Movements in working capitsl: (InC888Ydecr8a$e in debtors Increasel(decreasel in creditors (32.071) 30,938 48,283 (537) Cash goneratad from operatlons 113,607 243,673 26 Analysis of changes In not funds The trust had no debt during the year. -37-