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2021-12-31-accounts

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Charity registered no: 1068103 Company registered no: 1562723

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

INDEX PAGE
Trustees’ annual report 1 - 7
Report of the auditors 8 - 10
Statement of financial activities 11
Summary income and expenditure account 12
Balance sheet 13
Statement of Cash Flows 14
Notes to the financial statements 15 – 25

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 1

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

This report fulfils the requirements of the Charities Act 2011 for a Trustees’ Annual Report, and the requirements of the Companies Act 2006 for a Directors’ Report.

Objectives and Activities

The United Reformed Church (Yorkshire Province) Trust Limited (‘the Charity’) is established to advance the Christian religion and propagate the Gospel in accordance with the doctrines, principles and usages of the United Reformed Church with particular responsibility for the Yorkshire Synod of that Church.

The Charity exists to support the United Reformed Churches of the Yorkshire Synod in their search to obey the will of Christ in their witness to the world. The main objective of the Charity is to provide resources, funded by the Charity’s assets, to enable the churches to do this.

Currently, the main strategy of the Charity is to maximise income through the Executive Council, in partnership with the Investment Sub Committee; and to apply the resources so generated in response to requests from the appropriate councils of the United Reformed Church in Yorkshire and in accordance with the United Reformed Church Acts 1972, 1981 and 2000.

Significant activities

Encouraging churches to undertake mission activity relevant to their variety of contexts.

Provision of information, advice, support and encouragement to churches covering…

Administering the investments and property of the churches.

Advising and assisting with establishing, grouping, amalgamating or dissolution of local churches within the United Reformed Church and with other denominations.

Developing a strategy for the deployment of ordained ministry within the Synod and assisting churches during times of vacancy.

Providing training and resources for the enabling of;

Grant making and other financial support for church buildings and mission projects.

Management and maintenance of investments and properties held for the use of the Charity.

Public Benefit

The Charity has considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

The Charity proclaims the Gospel of Jesus Christ, with its long established moral framework, and strives to develop spirituality and spiritual well-being through relationship with the God of the Bible.

This benefit is available to all communities who are within reach of one or more of our 88 churches which are situated across Yorkshire. Further details are to be found throughout the remainder of this report.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 2

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives and Activities (continued)

Grants Policy

The objects of the Charity dictate that grants can only be made to United Reformed Churches and Local Ecumenical Partnerships which are part of the Yorkshire Synod of the United Reformed Church.

Normally, the only individuals who can receive a grant are retired ministers or their widow(er)s and these welfare grants are awarded in response to applications made to the Welfare Committee each year. Applicants must be resident within the Yorkshire Synod.

United Reformed Churches in Yorkshire may apply for assistance from the following funds:

Church Extension Fund interest free loans for church building projects Closed Churches Fund for 25% of the cost of church survey reports Vision and Opportunity grant for churches facing building challenges Vision and Opportunity grant for churches and individuals for training, evangelical and pastoral projects Synod Mission Fund for Mission projects assessed against the “Ten Statements of Mission” which have been adopted by the United Reformed Church

Synod Mission Fund grant applications are considered by the Mission Fund Panel, which meets four times a year. The Panel consists of the Synod Clerk, Synod Evangelist, and Conveners of the Synod Pastoral, Ministries, Property and Financial Resources Committees.

From time to time other funds may be made available with the approval of the Synod.

Applications for interest free loans will be considered by the Synod Financial Resources Committee.

All grants are accounted for once a decision has been reached and the church notified, and if applicable has accepted the terms of the grant. Grants will be held for a maximum of three years, any delay longer than this will require a fresh application.

Achievements, Performance and Future Plans

The Charity has maximised its income, subject to compliance with its ethical investment policy, and applied its resources in response to requests from the appropriate councils of the Church and has employed staff to carry out the activities shown on page 1.

The performance of the investment portfolios was assessed by the Investment Sub Committee on behalf of the Trustees and the income received was some 15% higher (2020: 13% lower) than the budget set by the Synod for 2021. Considering the impact of Covid-19 on the financial markets, it was felt that this was a very acceptable result. The economic climate remains uncertain with increasing interest rates, inflationary pressures and the situation in the Ukraine.

Two years on from the beginning of pandemic restrictions, it is clear that there are continuing impacts on the normal church life. The working, worshipping and mission patterns have changed and it is not yet clear to what extent they will revert to what they were like pre-pandemic, and to what extent there will be long-term adjustments.

The process has been traumatic in many ways, and the impact is showing itself in slow-motion in the church. Over the last year there has been the closure of 4 churches, and there have been 2 instances of amalgamating churches. The pandemic has forced conversations over issues which have long been there. More positively, the Synod has proven it can do things differently and this has created the opportunity to re-imagine the life of the church.

There are many examples of good work across the Synod. The Leading Your Church into Growth team is doing superb work, and is one of the most significant tools the Synod has to help the churches meet the challenges of the moment. The Lay

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 3

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements, Performance and Future Plans (continued)

Preachers, Ministers and Church Secretaries continue to support each other and the Elders’ Development group carry on their excellent work. After a slow start, the discipleship development programme (known as Stepwise) is starting to gain momentum and it is good to hear stories of members of churches exploring their calling to different roles in the local church. The Wilderness team continue their work with children and young people in the Synod. There is a continued offer of training and support in relation to IT, and this is appreciated by many churches and has opened up new possibilities for engagement.

At the October Synod, a focus was on the work of the Green Apostle in moving the churches and Synod toward EcoChurch status, and time was spent exploring racial justice. Alongside these, a major theme of Mission was picked up. During 2022, it is hoped that the Synod will be able to draw together from the different contexts of local churches, a serious conversation about how to articulate the calling to mission, how this is already being put into practice, and how to face fresh challenges.

Plans for Elders made for 2021 included the Annual Conference and a 24-hour meeting at Wydale Hall. For the Annual Conference plans were revisited which had been made for the 2020 conference with title “Wise and wonderful: the gift and responsibility of God’s creation”. The Annual Conference took place online, which was a well-attended and interesting day, giving participants much to think about and act on in their own contexts. The 24-hour meeting at Wyedale Hall at the end of September 2021, looked at a study based on the Psalms, the title of which was, ‘How Can We Sing the Lord’s Song?’

Elders’ plans for 2022 include an Annual Conference on Saturday 26 March at Bilton Grange URC in Harrogate and online. Plans are also well advanced for a day on Spirituality and Prayer entitled ‘From a Spark to a Flame’. There are again plans to hold a 24-hour event at Wyedale Hall at the end of September 2022.

Wydale Hall is also the venue in November 2022 for a 2-day Minister’s residential.

Finally, there are currently no students in training for the Ministry of Word and Sacraments.

A dominant factor of 2021 have been the discussions about the URC Ministers Pension Scheme. The United Reformed Church Trust Ltd (URCTL) had asked each Synod to make a contribution to alleviate the substantial £45 million deficit on the scheme, over a 10 year period between 2021 and 2030. In July 2021, an aspirational offer of £1.675 million was made to the URCTL from the Yorkshire Synod. This was based upon the forecast of contributions payable from the proceeds of the sale of closed church buildings and voluntary payments from churches. In order to assist with the challenge of raising funds for the pension scheme, it was agreed at the March and October Synod meetings, that proceeds of sales from church closures, church amalgamation, local ecumenical partnerships and redundant manse funds should be redirected from the Synod Mission Fund to the Closed Churches Fund until Synod makes a new policy. In December 2021 the first payment of £350,000 was made to the scheme.

The Synod Mission Fund continued to help churches establish creative and innovative missionary projects throughout the year. In 2021, the fund made 13 awards totalling £179,292. The projects receiving awards ranged from children, youth and families to audio visual and streaming.

The Vision and Opportunity Initiative also continues to offer grants to churches to develop property for mission purposes and has so far made awards totalling £279,585, with a remaining balance to distribute of £170,415. Evangelistic, training and pastoral related grants have been issued totalling £19,752, with a remaining balance to distribute of £30,248. The remaining sum of £200,000 has been allocated for collaborative mission projects but the criteria for this has not yet been decided.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 4

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Financial Review

Results for the year

These financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102) issued in January 2015.

The excess of income over expenditure for the year amounted to £924,517 (in 2020, the excess of expenditure over income was £300,313).

Reserves policy and going concern

Reserves are unrestricted funds, which are not held as fixed assets. Reserves will normally be held to finance the work of the United Reformed Church in Yorkshire including the Yorkshire Congregational Union (YCU) together with its responsibilities to the work nationally, for a period of 12 months. The YCU is a connected charity and is explained on page 5. The average resources expended from unrestricted funds, over the three years, to 31 December 2021, was £12,818 and the level of reserves at that date was £284,807.

In 2018, the Trustees became aware of a serious incident related to one particular church, disclosure of which was made by the YCU to the Charity Commission. This matter is still ongoing, and the trustees continue to do their utmost to resolve the issue. Financial support from the Trust to the YCU would be put in place if required.

In light of the global pandemic the trustees have regularly reviewed and evaluated the financial impact on the Synod and concluded that there is no going concern uncertainty. They will continue to monitor as required.

The assets are available and adequate to fulfil the obligations of the Charity. Each fund has sufficient resources in an appropriate form to meet its obligations. All the assets of the Charity are used for the direct charitable purposes of the Charity and were acquired in accordance with powers vested in the Executive Council. The financial position at the Balance Sheet date is satisfactory and will enable the Charity to meet future obligations.

Investment policy and investment powers

There has been no change to the Investment Policy Statement and the Policy Document. This document outlines the responsibilities of the various committees within the Synod and contains details of the Discretionary Management of the Investments by Brewin Dolphin Securities Ltd. The Policy Document also outlines the Requirements, Restrictions, Recording, and Reporting under which the Managers will operate.

Property

All property under the control of the Charity is shown at market value as indicated in notes 9 and 11 of the Financial Statements. The valuations used were those provided by Walker Singleton as at 31 December 2020.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 5

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, Governance and Management

The Charity is a company limited by guarantee under the provisions of the Companies Act 2006. The governing instrument is the Memorandum & Articles of Association which is dated 19 May 1981.

The membership consists of the members for the time being of the Synod Council of the Yorkshire Synod of the United Reformed Church. At 31 December 2021 the number of members totalled 14 (2020 – 14). In the event of the Charity being wound up, every person who is a member, or who has been a member within one year, is liable to contribute to the debts and liabilities of the Charity a sum not exceeding £1.

The business of the Charity is managed by the members of the Executive Council who are Trustees of the Charity and Directors of the United Reformed Church (Yorkshire Province) Trust Limited for the purposes of company law. Members of the Executive Council are the members for the time being of the Financial Resources Committee of the Synod. The members of the Financial Resources Committee are recruited from the membership of the churches of the Yorkshire Synod, the appointments being approved by the Yorkshire Synod Council and ratified by Synod. Synod also appoints the Treasurer, Synod Moderator and the Synod Clerk who are ex-officio members of the Committee. However, following the appointment of a Synod Clerk as an employee of the Charity, on the 9 March 2019, the Synod Clerk will not be a member of the Executive Council. The Directors of the Charity are listed on page 6.

The Charity is aware of the need to enable and equip Trustees and takes steps to make available Charity Commission publications and newsletters.

The Financial Resources Committee of the Synod meets six times a year and is responsible for all financial decisions, except the decisions about Synod Mission Fund Grants which are made by the Synod Mission Fund Panel (see Grants Policy on page 2). Investments are monitored by a sub-committee on which the Treasurer serves. This sub-committee meets four times a year and implements investment strategies established by the Trustees. Currently the Investments are managed by Brewin Dolphin Securities on a discretionary basis. Minutes of the Investment Sub-Committee meetings are circulated to the Trustees.

The Charity operates as an autonomous body but, along with twelve other Synods (or regions), is part of The United Reformed Church and this brings a share of national responsibilities. A resource sharing process is in place to enable Synods with more resources to help those less well equipped. Historically, Yorkshire has been a net contributor to this scheme but since 2010 has adopted a neutral position neither giving nor receiving from the process.

Connected Charities

The United Reformed Church (Yorkshire Province) Trust Limited is connected with the YCU. The YCU holds investments as Custodian Trustee for many of the local churches of the United Reformed Church in the Yorkshire Synod, and holds property as Trustee for most of those churches. The YCU shares the United Reformed Church (Yorkshire Province) Trust Limited offices and administration, for which it pays a small charge based on its income. The Trustees of the United Reformed Church (Yorkshire Province) Trust Limited are also Trustees of the YCU, but the Chair of Trustees of the YCU is not a Trustee of the Charity.

Risk Management

The Executive Council has a risk management strategy in line with the guidance published by the Charity Commission organising risk into three headings – Governance and Control, Operational Risk and Financial Risk. Control procedures are then agreed to contain, mitigate or even totally remove the risks. The Risk Management Strategy is reviewed periodically.

As with most organisations, the Covid-19 outbreak has had an impact on the Synod and its churches. The Synod responded with new ways of working and support was offered to all of its churches and this remains in place.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 6

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Reference and Administrative Details

Company registration number: 1562723
Charity registration number: 1068103
Registered Office: Somerset House, St Paul’s Street
Morley, Leeds, LS27 9EP
Telephone 0113 289 8490
Fax 0113 289 8491
Email
office@urcyorkshire.org.uk
Web Site: www.urcyorkshire.org.uk
Trustees & Directors: Mr J Charlesworth
Rev S K Copley
Rev A Crump
Mr C Evans
Mr S Gooder
Rev J Kissack
Secretary to Trustees & Company Secretary: Mr Alastair C Forsyth
Bankers: National Westminster Bank plc
Leeds City Branch, PO Box 154,
8 Park Row, Leeds, LS1 1QS
Solicitors: Lupton Fawcett LLP
Yorkshire House,
East Parade, Leeds, LS1 5BD
Auditors: SMH Jolliffe Cork Audit Ltd
Chartered Accountants and Statutory Auditor,
33 George Street,
Wakefield, WF1 1LX
Investment Managers: Brewin Dolphin Ltd
10 Wellington Place, Leeds, LS1 4AN
Property Advisers: Walker Singleton
Property House, Lister Lane,
Halifax, HX1 5AS

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 7

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Statement of Responsibilities of the Executive Council

Company law requires the Executive Council to prepare financial statements for each financial year which give a true and fair view of the state of the Charity’s financial activities during the year and of its financial position at the year end. In preparing those financial statements, the Executive Council should follow best practice and:

The Executive Council is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and which enable it to ascertain its financial position and to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011 and regulations thereunder. It is also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each member of the Executive Council at the date of this report is aware,

These financial statements comply with current statutory requirements and with the requirements of the Charity’s governing document.

Auditors

SMH Jolliffe Cork Audit Ltd offer themselves for reappointment as auditors in accordance with section 485 of the Companies Act 2006.

SIGNED ON BEHALF OF THE EXECUTIVE COUNCIL

Rev Simon Copley (Executive Council Member)

Rev Alan Crump (Executive Council Member)

Date: 27 April 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

Page 8

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Opinion

We have audited the financial statements of The United Reformed Church (Yorkshire Province) Trust Limited (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, cash flow statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we 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 concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that individually or collectively may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 7, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

Page 10

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Auditor’s responsibilities for the audit of the financial statements (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Date …………………………….

Claire Lawton FCA DChA (Senior Statutory Auditor) For and on behalf of SMH Jolliffe Cork Audit Ltd 33 George Street Wakefield WF1 1LX

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 11

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Investments
4
Profit on sale of tangible asset
Total
16
Expenditure on:
Raising funds
5
Charitable activities
5
Total
Gains/(losses) on investment assets
11
Realised
Unrealised
Total
Net income/(expenditure)
Transfers between funds
16
Other recognised gains/(losses):
Gains/(losses) on revaluation of
fixed assets
9
Net movement in funds
Reconciliation of funds:
Total funds brought forward
At 1 January 2021
Total funds carried forward
16 & 17
At 31 December 2021		 Unrestricted
Funds
£
32,070
429,930
247,656
-
709,656
20,881
472,143
493,024
-
-
-
216,632
3,437
-
220,069
64,738
284,807		 Restricted
Funds
£
333
874,154
13,182
22,401
910,070
25,160
598,434
623,594
69,287
285,984
355,271
641,747
(3,437)
-
638,310
8,035,811
8,674,121		 £
-
-
-
-
-
5,001
-
5,001
11,176
59,963
71,139
66,138
-
-
66,138
1,113,682
1,179,820
Endowment
Funds		 2021
Total
Funds
£
32,403
1,304,084
260,838
22,401
1,619,726
51,042
1,070,577
1,121,619
80,463
345,947
426,410
924,517
-
-
924,517
9,214,231
10,138,748		 Unrestricted
Funds
£
45,883
27,803
236,176
24
309,886
20,777
462,678
483,455
-
-
-
(173,569)
3,112
-
(170,457)
235,195
64,738		 Restricted
Funds
£
3,353
354,459
13,783
10,731
382,326
23,099
373,395
396,494
(181,568)
88,085
(93,483)
(107,651)
(3,112)
113,182
2,419
8,033,392
8,035,811		 £
-
-
-
-
-
4,574
-
4,574
(32,212)
17,693
(14,519)
(19,093)
-
-
(19,093)
1,132,775
1,113,682
Endowment
Funds		 2020
Total
Funds
£
49,236
382,262
249,959
10,755
692,212
48,450
836,073
884,523
(213,780)
105,778
(108,002)
(300,313)
-
113,182
(187,131)
9,401,362
9,214,231

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 12

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Income as reported on the SOFA
Gains on investments
Gain on revaluation of fixed assets
Gross income in the reporting period
Expenditure as reported on the SOFA
Losses on investments
Net income / (expenditure) for the year		 2021
£
1,619,726
355,271
-
1,974,997
1,116,618
-
858,379		 2020
£
692,212
-
113,182
805,394
879,949
93,483
(168,038)

The Summary Income and Expenditure account excludes movements on the endowment funds. It is derived from the Statement of Financial Activities which together with the notes 1 to 19 provides full information on the movements during the year on all the Charity's funds.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 13

BALANCE SHEET AT 31 DECEMBER 2021

Note
Fixed assets:
Tangible assets
9
Investments
11
Total fixed assets
Current assets:
Debtors
12
Cash at bank and in hand
Total current assets
Liabilities:
Creditors: amounts falling
due within one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
15
Total net assets
The funds of the charity:
16 - 18
Endowment funds
Revaluation reserve/(deficit)
Other restricted funds
Other unrestricted funds
Total charity funds		 177,034
8,497,087
284,807		 2021
£
1,035,954
7,586,108
8,622,062
33,021
1,955,694
1,988,715
(244,528)
1,744,187
10,366,249
(227,501)
10,138,748
1,179,820
8,674,121
284,807
10,138,748		 177,034
7,858,777
64,738		 2020
£
1,408,921
7,182,506
8,591,427
29,514
1,053,162
1,082,676
(237,868)
844,808
9,436,235
(222,004)
9,214,231
1,113,682
8,035,811
64,738
9,214,231

The financial statements were approved by the Executive Council on 27 April 2022.

Rev Simon Copley

Rev Alan Crump

Executive Council Member Executive Council Member

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 14

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities:
Cash flows from investing activities:
Purchase of tangible fixed assets
Proceeds from the sale of investments
Cash (added to) /withdrawn from investments
Purchase of investments
Reconciliation of net (expenditure)/income to net cash flow from operating activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Net cash used in operating activities
Dividends, interest and rents from investments
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the reporting period
Net proceeds/(costs) associated with the sale of tangible fixed assets
(Profit)/loss on the sale of tangible fixed assets
Decrease /(Increase) in debtors
(Decrease) /Increase in creditors
Net cash used in operating activities
Net income/(expenditure) for the reporting period (as per the statement
of financial activities)
Adjustments for:
Depreciation charges
(Gains)/Losses on investments
Dividends, interest and rents from investments		 2021
Total
Funds
£
252,971
260,838
370,651
(4,736)
2,306,655
-
(2,283,847)
649,561
902,532
1,053,162
1,955,694
2021
Total
Funds
£
924,517
29,453
(426,410)
(260,838)
(22,401)
(3,507)
12,157
252,971
2021
Total
Funds
£
1,955,694
1,955,694		 2020
Total
Funds
£
(232,936)
249,959
11,130
(96,554)
1,466,547
-
(1,430,904)
200,178
(32,758)
1,085,920
1,053,162
2020
Total
Funds
£
(300,313)
34,822
108,002
(249,959)
(10,755)
136,055
49,212
(232,936)
2020
Total
Funds
£
1,053,162
1,053,162

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 15

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Principal accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The United Reformed Church (Yorkshire Province) Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Incoming resources

Donations are included when they are received. Legacies are included when it is probable that they will be received. Investment income is included when it is receivable, and includes any recoverable income tax. Property rents and interest on loans are included when they fall due. Investments and other assets from churches which have closed are accounted for when the amount receivable can reasonably be ascertained.

Recognition and valuation of donated services

The services of the Synod's Development Officer (to 31 October 2020) and Evangelist, who are Ministers of Word and Sacrament in the URC, are provided by the URC under its Plan for Partnership in Ministerial Remuneration at no charge to the charity. These donations have been valued at the usual employment cost of a URC minister, reduced for the Synod Evangelist, which is not a full-time appointment. The cost is included in expenditure on charitable activities.

The Charity's activities are dependent on volunteer members of committees. Travel expenses are reimbursed but there is no recognition in these accounts of the time donated by volunteers.

Basis of allocation of costs

Grants payable are voluntary payments to individuals, local URC churches or URC organisations in accordance with the purpose of the relevant fund. They are accounted for when they have been approved by the Synod Council or Financial Resources Committee, the recipient has been told of that approval, and if applicable has accepted the terms related to the grant. Grants to URC churches are usually multi-year grants. A creditor is included for the full amount of the grant offered. Payment of the second or later year's instalment is dependent on receipt of a report on the previous year, showing the progress made on the project. Occasionally Synod Council will require repayment of grants which have not been spent.

Support costs incurred in maintaining the office and employing the office staff have been allocated to raising income, charitable activities and governance in proportion to the time spent by office staff on each activity.

Tangible fixed assets and depreciation

Freehold and leasehold properties held for continuing use by the Charity are revalued by professional valuers every 5 years and are depreciated over 50 years. Long leasehold properties are defined as those properties with an unexpired lease term of more than 50 years. Properties acquired between valuations are included at cost and depreciated over 50 years. Properties sometimes pass to the Charity from United Reformed Churches in Yorkshire which have closed. If they are to be retained they are valued on acquisition. If the property is to be sold it is not revalued.

Office equipment is capitalised where a purchase or project costs over £500, and is included at cost less a provision for depreciation. This is calculated to write down the cost of tangible fixed assets by equal annual instalments over their expected useful lives, which are between 3 and 10 years.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 16

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

1 Principal accounting policies (continued)

Investment assets

Investments listed or traded on a recognised stock exchange are included at market value at the balance sheet date. Investment properties are valued professionally every five years. In between the valuations the Trustees’ best estimate of market value is used. In accordance with standard accounting practice, no depreciation is charged on investment properties. Concessionary loans to URC churches are valued at the amount paid less repayments received.

Current asset measurement

Debtors are included at their recoverable amount.

Current asset investments comprise working capital held on short-term deposit. Cash at bank and in hand comprises the balance in the bank current account and the petty cash float. Creditors: amounts falling due within one year are valued at settlement amount.

2
Income from donations and legacies
Donations
Notional Grant for Synod Development Officer (in 2020) and Evangelist
Gifts
Synod Levy		 2021
2020
£
£
14,920
40
17,150
45,543
333
3,653
32,403
49,236

The Synod Levy, which was calculated at £7.50 per member per year, was charged on a voluntary basis in 2021.

ncome from charitable activities
Net proceeds of redundant manse funds and sale of redundant churches
Income from church closed in the year
Contribution from Northern Province to safeguarding costs
Interest on loans to churches & ministers
Management charge (see note 13)		 2021
2020
£
£
-
255,069
1,280,688
106,472
23,396
15,445
-
8
-
5,268
1,304,084
382,262

When United Reformed Churches in Yorkshire close, the net assets and building pass to the Charity. The building is not included in fixed assets if it is sold within a year of closure. There can be significant variances in this income from one year to another.

From March 2018, the net proceeds from the sale of Closed Church property are to be divided 20% to the United Reformed Church Ministers' Pension Fund; 40% to the Synod Mission Fund and 40% to the Closed Churches Fund. From March 2010 amalgamated churches, and those in local ecumenical partnerships, are required to transfer to the Charity 50% of the net proceeds of any United Reformed Church property sale, for use by the Synod Mission Fund. From October 2011, any manse fund declared redundant is divided 75% to the local church and 25% to the Synod Mission Fund.

At the 2021 Synod meetings, it was agreed that proceeds of sales from church closures, church amalgamation, local ecumenical partnerships and redundant manse funds should be redirected from the Synod Mission Fund to the Closed Churches Fund until Synod makes a new policy.

4
Income from Investments
Income from quoted investments
Investment property rents
Interest on bank balances		 2021
2020
£
£
237,850
224,980
22,756
22,756
232
2,223
260,838
249,959

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 17

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

5 Expenditure on raising funds and charitable activities Expenditure on raising funds and charitable activities
Expenditure on raising funds Direct Grant Support
costs funding costs 2021 2020
£ £ £ £ £
Managing investments
Investment management fees 30,161 - - 30,161 27,673
Support costs - - 20,881 20,881 20,777
30,161 - 20,881 51,042 48,450
Expenditure on charitable activities Direct Grant Support Total Total
Grant making costs funding costs 2021 2020
Grants to individuals £ £ £ £ £
Retired ministers and widows (7 grants) 5,600 5,600 5,000
Grants to URC institutions
To churches for mission activities (13 grants) 162,395 162,395 221,381
To churches for property surveys (10 grants) 1,994 1,994 2,385
Vision & Opportunity to churches (8 grants) 62,614 62,614 125,076
Ministers pension Fund (1 grant) 350,000 350,000 -
Support costs 5,220 5,220 5,194
- 582,603 5,220 587,823 359,036
Other charitable activities
Training ministers and lay members 1,520 2,610 4,130 36,519
Youth, children and safeguarding 113,131 2,610 115,741 115,141
Administering churches' property
and investments 1,279 62,642 63,921 63,377
Supporting committees and Synod 24,744 36,541 61,285 46,799
Pastoral work 364 20,881 21,245 21,960
Supporting and encouraging URC
churches, districts and centrally 22,994 70,472 93,466 97,617
Chaplaincies, industrial mission
and ecumenical relations 3,149 5,220 8,369 7,410
Management & maintenance of
Synod properties 63,045 13,050 76,095 53,746
Sundry and contingencies 7,160 - 7,160 1,986
237,386 - 214,026 451,412 444,555
Governance costs
External audit fee 5,400 - 5,400 5,526
Internal audit and accountancy 1,600 - 1,600 1,596
Legal and professional fees 3,460 - 3,460 2,803
Recruitment fees - - (20)
Revaluation fees - - - 1,800
Support costs - 20,882 20,882 20,777
10,460 - 20,882 31,342 32,482
~~5,060~~
Total expenditure on
charitable activities 247,846 582,603 240,128 1,070,577 836,073

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 18

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

6 Expenditure on raising funds and charitable activities - previous year Expenditure on raising funds and charitable activities - previous year
Expenditure on raising funds - previous year Direct Grant Support
costs funding costs 2020
£ £ £ £
Managing investments
Investment management fees 27,673 - - 27,673
Support costs - - 20,777 20,777
27,673 - 20,777 48,450
Expenditure on charitable activities - previous year
Direct Grant Support Total
Grant making costs funding costs 2020
Grants to individuals £ £ £ £
Retired ministers and widows (6 grants) 5,000 5,000
Grants to URC institutions
To churches for mission activities (19 grants) 221,381 221,381
To churches for property surveys (7 grants) 2,385 2,385
Vision & Opportunity to churches (15 grants) 125,076 125,076
Support costs 5,194 5,194
- 353,842 5,194 359,036
Other charitable activities
Training ministers and lay members 33,922 2,597 36,519
Youth, children and safeguarding 112,543 2,598 115,141
Administering churches' property
and investments 1,046 62,331 63,377
Supporting committees and Synod 10,439 36,360 46,799
Pastoral work 1,183 20,777 21,960
Supporting and encouraging URC
churches, districts and centrally 27,494 70,123 97,617
Chaplaincies, industrial mission
and ecumenical relations 2,216 5,194 7,410
Management & maintenance of
Synod properties 40,760 12,986 53,746
Sundry and contingencies 1,986 - 1,986
231,589 - 212,966 444,555
Governance costs
External audit fee 5,526 - 5,526
Internal audit and accountancy 1,596 - 1,596
Legal and professional fees 2,803 - 2,803
Recruitment fees (20) (20)
Revaluation fees 1,800 - 1,800
Support costs - 20,777 20,777
11,705 - 20,777 32,482
Total expenditure on
charitable activities 243,294 353,842 238,937 836,073

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 19

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

7 Analysis of support costs

Analysis of support costs
Other
Raising Grant- charitable
funds making activities Governance Total
£ £ £ £ £
Office staff costs 18,266 4,567 187,229 18,267 228,329
Office rates and maintenance 1,161 290 11,899 1,161 14,511
Office expenses and equipment 919 230 9,418 919 11,486
Depreciation 535 133 5,480 535 6,683
20,881 5,220 214,026 20,882 261,009
Analysis of support costs - previous year
Other
Raising Grant- charitable
funds making activities Governance Total
£ £ £ £ £
Office staff costs 17,939 4,484 183,872 17,939 224,234
Office rates and maintenance 1,059 265 10,857 1,059 13,240
Office expenses and equipment 1,096 274 11,234 1,096 13,700
Depreciation 683 171 7,003 683 8,540
20,777 5,194 212,966 20,777 259,714

Support costs are allocated in proportion to the time spent by office staff on the activities shown.

It has been accepted that the Synod Development Officer (to 31 October 2020) and Synod Evangelist are Ministers of Word and Sacraments under the terms of the United Reformed Church Plan for Partnership in Ministerial Remuneration and should not be classified as employees.

8 Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel

Salaries and wages
Employer's National Insurance
Pension contributions to defined benefit schemes		 2021
2020
£
£
249,479
245,295
21,441
20,381
61,278
60,681
332,198
326,357

No employee received remuneration of more than £60,000 per annum, and there were no other employee benefits other than those disclosed above.

The average number of employees during the year was 11 (2020 - 11).

The key management personnel of the Charity are the Trustees, who include the Synod Treasurer, and key employees of the charity, who are the Trust Secretary, the Property Secretary, the Synod Clerk and the Finance Manager. The employee benefits of the key personnel total £148,867 (2020 £146,583).

Trustees' expenses

Members of the Executive Council are entitled to claim travel expenses for attending its meetings. The Treasurer may claim other expenses (travel, telephone, stationery etc.) incurred in their capacity as trustee. No trustee nor anyone connected with the trustees received any remuneration in 2021 or 2020 except as noted below.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 20

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

8
Analysis of staff costs, Trustee remuneration and expenses and the cost of key management personnel
2021
2020
The total of expenses claimed, by 1 (2020 4) Trustees, for the year was:
1,566
£
£2,943
9
Tangible assets
Freehold
Leasehold
Office
Property
Property
equipment
Total
Cost or valuation
£
£
£
£
At 1 January 2021
1,162,500
238,500
69,613
1,470,613
Additions
3,638
-
1,098
4,736
Disposals
(350,000)
-
(1,680)
(351,680)
At 31 December 2021
816,138
238,500
69,031
1,123,669
Depreciation
At 1 January 2021
-
-
61,692
61,692
Charge for the period
18,000
4,770
6,683
29,453
Disposals
(1,750)
-
(1,680)
(3,430)
At 31 December 2021
16,250
4,770
66,695
87,715
Net book value
At 1 January 2021
1,162,500
238,500
7,921
1,408,921
At 31 December 2021
799,888
233,730
2,336
1,035,954
Net carrying value of revalued assets
on historical cost basis
768,349
225,045
-
993,394
Property
Net book amount
The property is used for the direct charitable purposes of the Charity and comprises:
£
Housing for ministers of local churches or in Synod posts (a part share in 3 properties)
794,780
Synod office building
238,838
1,033,618		 8
Analysis of staff costs, Trustee remuneration and expenses and the cost of key management personnel
2021
2020
The total of expenses claimed, by 1 (2020 4) Trustees, for the year was:
1,566
£
£2,943
9
Tangible assets
Freehold
Leasehold
Office
Property
Property
equipment
Total
Cost or valuation
£
£
£
£
At 1 January 2021
1,162,500
238,500
69,613
1,470,613
Additions
3,638
-
1,098
4,736
Disposals
(350,000)
-
(1,680)
(351,680)
At 31 December 2021
816,138
238,500
69,031
1,123,669
Depreciation
At 1 January 2021
-
-
61,692
61,692
Charge for the period
18,000
4,770
6,683
29,453
Disposals
(1,750)
-
(1,680)
(3,430)
At 31 December 2021
16,250
4,770
66,695
87,715
Net book value
At 1 January 2021
1,162,500
238,500
7,921
1,408,921
At 31 December 2021
799,888
233,730
2,336
1,035,954
Net carrying value of revalued assets
on historical cost basis
768,349
225,045
-
993,394
Property
Net book amount
The property is used for the direct charitable purposes of the Charity and comprises:
£
Housing for ministers of local churches or in Synod posts (a part share in 3 properties)
794,780
Synod office building
238,838
1,033,618		 8
Analysis of staff costs, Trustee remuneration and expenses and the cost of key management personnel
2021
2020
The total of expenses claimed, by 1 (2020 4) Trustees, for the year was:
1,566
£
£2,943
9
Tangible assets
Freehold
Leasehold
Office
Property
Property
equipment
Total
Cost or valuation
£
£
£
£
At 1 January 2021
1,162,500
238,500
69,613
1,470,613
Additions
3,638
-
1,098
4,736
Disposals
(350,000)
-
(1,680)
(351,680)
At 31 December 2021
816,138
238,500
69,031
1,123,669
Depreciation
At 1 January 2021
-
-
61,692
61,692
Charge for the period
18,000
4,770
6,683
29,453
Disposals
(1,750)
-
(1,680)
(3,430)
At 31 December 2021
16,250
4,770
66,695
87,715
Net book value
At 1 January 2021
1,162,500
238,500
7,921
1,408,921
At 31 December 2021
799,888
233,730
2,336
1,035,954
Net carrying value of revalued assets
on historical cost basis
768,349
225,045
-
993,394
Property
Net book amount
The property is used for the direct charitable purposes of the Charity and comprises:
£
Housing for ministers of local churches or in Synod posts (a part share in 3 properties)
794,780
Synod office building
238,838
1,033,618
816,138
238,500
69,031
1,123,669
-
-
61,692
61,692
18,000
4,770
6,683
29,453
(1,750)
-
(1,680)
(3,430)
16,250
4,770
66,695
87,715
1,162,500
238,500
7,921		 1,408,921
799,888
233,730
2,336		 1,035,954
768,349
225,045
-		 993,394
Net book amount
£
794,780
238,838
1,033,618

The housing was revalued as at 31 December 2020 by Walker Singleton, external Chartered Surveyors, at market value with vacant possession, in accordance with the Royal Institute of Chartered Surveyors Valuation Standards. The Synod office building was similarly revalued as at 31 December 2020 at existing use value.

10[Taxation]

The company 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 company 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.

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 21

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

11 Fixed asset investments
Market value
At 1 January 2021
Less:
Disposals at opening book value
Deposits realised/(reinvested)
Investment management fees
Loan repayments
Add:
Deposited for investment
Acquisitions at cost
Revaluation
At 31 December 2021
Historical cost
At 31 December 2021
Disposals:
Proceeds
Book value at 1 Jan 2021
Realised gain		 Investment
Listed
Balances at Concessionary
properties
investments
stockbroker
loans
Total
£
£
£
£
£
477,626
6,678,949
13,781
12,150
7,182,506
-
(2,217,972)
-
(2,217,972)
-
-
28,087
28,087
-
-
(30,161)
(30,161)
-
-
-
(8,220)
(8,220)
-
-
-
-
-
-
2,270,346
-
15,575
2,285,921
-
345,947
-
345,947
477,626
7,077,270
11,707
19,505
7,586,108
-
6,059,805
11,707
19,505
6,071,512
360
-
2,298,435
-
-
2,298,435
(2,217,972)
-
-
(2,217,972)
-
80,463
-
-
80,463

The investment property is 83.794% of the freehold at Aberdeen Walk, Scarborough, and was revalued as at 31 December 2020 by Walker Singleton, external Chartered Surveyors, at market value, in accordance with the Royal Institute of Chartered Surveyors Valuation Standards.

All fixed asset investments are in held in the UK, in Nominee Accounts at the brokers. Details of the portfolio of listed investments are as follows:

Equity investments
Gilt-edged and fixed interest stocks
Investment and unit trusts
Material investments (over 5% by value) at the end of the year:
Baillie Gifford American W1 Dis
Fidelity US Quality Income UCITS ETF		 2021
2020
£
£
1,720,498
1,903,728
246,395
404,089
5,110,377
4,371,131
7,077,270
6,678,948
£
£
375,823
453,446
391,519
0

All concessionary loans are to churches within the URC Yorkshire province. The maximum repayment period is 5 years and simple interest is charged at 0%. Repayments of capital are made quarterly or monthly. No security is provided on any loan. The maximum capital outstanding on any loan at 31 December 2021 was £10,075 (31 December 2020: £3,108).

Concessionary loans falling due after more than one year
Concessionary loans falling due within one year		 £
£
2,621
7,861
16,884
4,289
19,505
12,150

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 22

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

12 Debtors
Amounts owed by group and associated undertakings:
Yorkshire Congregational Union (Incorporated)
Cash in transit from YCU (Inc)
Prepayments and accrued income		 2021
2020
£
£
0
5,268
403
416
32,618
23,830
33,021
29,514

13 Related Parties

The Yorkshire Congregational Union (Incorporated) is a Charity administered by the same Trustees as the United Reformed Church (Yorkshire Province) Trust Limited, from the same office. It acts as Trustee for many of the United Reformed Churches in the Yorkshire Synod. The Yorkshire Congregational Union (Incorporated) has no employees; its administrative work is performed by employees of the United Reformed Church (Yorkshire Province) Trust Ltd, for which a management charge is made. The charge for 2021 was £nil (2020: £5,268). In addition, one of the churches for which the YCU acts as custodian trustee owed the Trust £284 (2020: £416) at the year end.; the YCU owed the Trust £403 (2020: £5,268).

Trustees or people connected with the Trustees may also be Trustees of a church in receipt of a grant or concessionary loan from the Trust. Grants are awarded by a separate group from the Trustees, and members of that group will not take part in the decision if they have a conflict of interest.

Revd A Crump who is a minister at Knaresborough and Bilton Grange URCs and is also a Trustee, occupies a manse which is part owned by the Trust and part owned by a local church.

14 Creditors: amounts falling due within one year
Accruals for grants payable
Accruals and deferred income
Other creditors
15 Creditors: amounts falling due after more than one year
Accruals for grants payable		 2021
2020
£
£
210,240
210,275
31,707
20,383
2,581
7,210
244,528
237,868
2021
2020
£
£
227,501
222,004

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 23

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

16 Movement in funds during the year

Permanent endowments
General Purposes
Church Extension
Maintenance of Ministry
Welfare of Ministry
Home Churches
Restricted funds
Closed Churches capital
Closed Churches
revaluation reserve
Synod Mission
capital and income
Income funds
Church Extension
Maintenance of Ministry
Welfare
Home Churches
Unrestricted Funds
General income
Closed Churches income
Total Funds		 Balance
Transfers
Balance
1 January
Incoming
Outgoing
between
Revaluation
31 December
2021
resources
resources
funds
gains/losses
2021
£
£
£
£
£
£
747,127
-
(3,347)
-
47,556
791,336
253,163
-
(1,142)
-
16,288
268,309
17,845
-
(81)
-
1,148
18,912
76,481
-
(345)
-
4,920
81,056
19,066
-
(86)
-
1,227
20,207
1,113,682
-
(5,001)
-
71,139
1,179,820
6,910,607
896,555
(460,544)
-
355,271
7,701,889
177,034
-
177,034
547,641
220
(162,395)
-
-
385,466
389,280
9,078
-
-
-
398,358
-
637
-
(637)
-
-
10,044
2,899
-
(2,800)
-
10,143
1,205
681
(655)
-
-
1,231
8,035,811
910,070
(623,594)
(3,437)
355,271
8,674,121
64,738
82,077
(450,755)
588,747
-
284,807
-
627,579
(42,269)
(585,310)
-
-
64,738
709,656
(493,024)
3,437
-
284,807
9,214,231
1,619,726
(1,121,619)
-
426,410
10,138,748

The Charity is Trustee of all the funds, which are to be used by the United Reformed Church in its Yorkshire Synod.

Permanent Endowment funds represent those assets which must be held permanently by the Charity, principally investments. Any capital gains or losses arising on the investments form part of the fund. Investment management charges are charged against the fund. Income arising on the endowment funds is either restricted or unrestricted depending on the fund.

The endowment investments are pooled and held within the Common Investment Fund. All gains and income are credited to the constituent endowment and income funds in the proportion of the assets originally pooled, which were general (66.93%), church extension (22.84%), maintenance of the ministry (1.61%), welfare (6.90%) and home churches (1.72%).

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 24

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

16 Movement in funds during the year (continued)

Restricted funds are funds which have been given for particular purposes.

Unrestricted funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.

Designated funds are amounts of money within unrestricted funds which have been set aside for a specific purpose which will be achieved within less than three years.

General purposes fund - use of the income is unrestricted for the furtherance of religious and other charitable work of the United Reformed Church within its Yorkshire Synod.

Church extension fund - makes loans to local United Reformed Churches for the upkeep and repair of their buildings.

Maintenance of the ministry fund - provides a small income which is transferred to the general purposes fund where it is deemed to assist in the maintenance of the ministry of the Synod Moderator.

Welfare of the ministry fund - provides income which forms 50% of the grants made in cases of need to ministers, retired ministers and their dependants.

Home churches fund - represents a small amount of capital, the income from which forms part of the Synod's mission and ministry fund contributions to the United Reformed Church.

Closed churches fund - holds funds from churches closed after 1972, under the terms of the URC Trusts set out in the 1972 URC Act, as modified by the 1981 Act. The capital is available for use in accordance with the URC Act 1981, Schedule 2, parts I and II. Income from the investment of the capital is directed to the general purposes fund and is used to fund the work of the Synod.

Synod mission fund was set up in 2010 and incorporates the former Amalgamation fund. It receives funds primarily from property sales that arise as part of the closure or amalgamation of local churches, or the creation of Local Ecumenical Projects. Both capital and income are available for grants to local churches for any project that can be shown to promote the missionary work of the United Reformed Churches in Yorkshire.

Transfers between funds

The net income on the Closed churches fund is unrestricted and transferred to the General fund each year. The General fund also receives the income from the maintenance of the ministry and welfare funds, in line with the above descriptions.

17 Analysis of net assets between funds at the year end

Fund balances at the year end are
represented by:
Tangible fixed assets
Investments
Net current assets
Long term liabilities
Total net assets		 Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
£
£
£
£
2,336
1,033,618
-
1,035,954
-
6,406,551
1,179,557
7,586,108
282,471
1,461,453
263
1,744,187
-
(227,501)
-
(227,501)
284,807
8,674,121
1,179,820
10,138,748

THE UNITED REFORMED CHURCH (YORKSHIRE PROVINCE) TRUST LIMITED

Page 25

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

18 Pension costs

Lay Staff Pension Scheme

The Charity contributes to The United Reformed Church Final Salary Scheme, a pension scheme principally for lay staff, which is administered by TPT Retirement Solutions Trust (formerly The Pensions Trust). The scheme is a defined benefit scheme but the Charity is unable to identify its share of the underlying assets and liabilities - each employer in that scheme pays a common contribution rate.

During 2021 the Charity contributed 23.2% (2020: 25.1%) of basic salary in respect of members of the Final Salary. Members contributed at the rate of 7.5% (2020: 7.5%) of pensionable salary throughout the accounting period.

Triennial actuarial valuations of the Final Salary scheme are performed by a professionally qualified actuary. The most recent formal actuarial review of the scheme was at 30 September 2020, when the scheme had a surplus of £2,689,000. The assumptions underlying that valuation include:

Discount rate: 1.4% p.a. Pensionable earnings growth: 2.5% for three years, 2.75% thereafter Price inflation and pension increases: 2.55% Retirement age: 65, with maximum commutation

Ministers' Pension Scheme

It is estimated that the Ministers' Pension Fund (MPF), which is the responsibility of the United Reformed Church Trust Ltd (URCTL), will be £45 million in deficit over 10 years from 2021 to 2022.

Each of the 13 Synods of the United Reformed Church has been asked by URCTL to make contributions over that 10 year period to help reduce this underfunding.

In July 2021, the Trustees of the United Reformed Church (Yorkshire Province) Trust Limited made an aspirational offer of £1.675 million to the URCTL as a contribution towards the obligation that URCTL has to the MPF. This was approved at the October 2021 meeting of the Synod. This offer will be funded from the proceeds of sale of buildings of closed churches and any voluntary contributions from churches. In December 2021, a payment of £350,000 was made by the Yorkshire Synod to the MPF. This was the first of several payments to be made to assist with the anticipated deficit.

19 Post Balance Sheet Events

Since the latter end of 2021 the future of Saltaire URC has been under discussion. The church is still in being but has very limited capacity to carry out some of their normal functions. There is, also, considerable work to be carried out on the church building as a result of storm damage and ongoing issues identified in the latest quinquennial survey.

Synod has, therefore, set up a working group to assist the Church in their current challenges and this is occupying considerable time of Synod staff and Officers. The church is likely to require the help of the Synod to finance the work. Since the year end, Saltaire have taken a further loan from the Synod of £23,783.

At the year end, the property of 6 churches are held on Statutory Trusts in accordance with the United Reformed Church Acts of 1972, 1981 and 2000 by the Company following church closures. The proceeds of sale will revert to the Trust on sale in accordance with the Statutory Trusts on which the properties are held.