## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND**
# **FINANCIAL STATEMENTS AND ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023**
**REGISTERED CHARITY NUMBER: 1071913**
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The trustees present their report along with the Financial Statements of the charity for the year ended 31[st] March 2023. The Financial statements have been prepared in accordance with the accounting policies set out on page 10 and comply with thecharity’s Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for Smaller Entities (the FRSSE) (effective 1 January 2015).
## **Objectives & Activities**
The aim of the Trustee is to make grants in line with the governing document.
## **Achievements and Performance**
The Charity made the following grants in 2022/23:
|Anxiety Support Wales|2,000.00|
|---|---|
|Hub on the Hill (Primrose Hill Community Garden)|1,500.00|
|Morriston Tabernacle -Cronfa Adfer y Tabernacl|5,000.00|
|Bryn Road Group of Bowling Clubs|1,500.00|
|Llanmorlais Community Hall Charity|2,000.00|
|Legacy Network|1,500.00|
|St Catherines PCC Gorseinon|3,500.00|
|Vibe Youth CIC|1,500.00|
|Brynawel AFC|2,000.00|
|BME Mental Health Support|2,000.00|
|Sadies Butterflies|1,500.00|
**Total Grants Awarded 2022/23 24,000.00**
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023**
## **Financial Review**
## **Investment Policy and Performance**
The investor shall have power to invest all or any part of the said property and the income thereof from time to time not immediately otherwise required in furtherance of the said object in or upon such investments securities or property as the Trustee thinks fit. The Chief Executive shall act as the Clerk to the Trustee and the Director of Finance shall act as the Treasurer of the fund.
If the Trustee at any time decides that it is expedient to discontinue the fund any money held in the fund after the payment of all expenses or liabilities properly incurred shall be distributed among such exclusively charitable organisations operating within the City and County of Swansea, as the Trustee may determine.
## **Grant Making Policy**
The object of the Fund shall be to receive applications from organisations and charities for grant payments. Applications will not be considered for grants, which would normally be dealt with out of the annual budgets of the Council’s service departments or by public agencies or that would commit the Fund to regular payments for a particular purpose.
## **Structure, Governance and Management**
The City and County of Swansea Welsh Church Act Fund is a Registered Charity, number 1071913.
The Welsh Church Act Fund was established by a trust deed in 1914. It originally covered the old Glamorgan County Council area. The original Fund was apportioned in 1974, following Local Government Reorganisation to the 3 new Glamorgan Counties, South, Mid & West. Following further Local Government Reorganisation in 1996, the Fund of the former West Glamorgan County Council was apportioned on a population basis between the City & County of Swansea and Neath Port Talbot County Borough Council. This report covers the portion of the Fund now managed by the City & County of Swansea. The principal address is:
City & County of Swansea Finance Department Civic Centre Oystermouth Road Swansea SA1 3SN
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023**
## **Structure, Governance and Management Continued**
## **Trustee**
The City & County of Swansea is the Corporate Trustee of the Charity.
## **Advisors**
The following advisors assisted the Trustee in the year:
## **Honorary Treasurer**
The role of Honorary Treasurer of the City & County of Swansea Welsh Church Act Trust Fund is undertaken by the Section 151 Officer of Swansea Council or his/her suitably qualified nominee.
The financial statements and annual report 2022/23 are signed and approved on behalf of the Trustees by Mr Ben Smith, Honorary Treasurer.
Mr Ben Smith Director of Finance & Section 151 Officer City & County of Swansea Civic Centre Swansea SA1 3SN
## **Independent Examiner**
Mr R Dolbear CPFA 11 Hen Parc Avenue Upper Killay Swansea SA2 7HA
## **Bankers**
Lloyds TSB Bank Plc Oxford Street Swansea SA1 3AF
## **Fund Manager**
Fieldings Investment Management Ltd Salisbury House London Wall London EC2M 5QS
For and behalf of the Trustee
(Honorary Treasurer)
101512023
{Date)
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEE OF THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND**
I report on the accounts of the charity for the year ended 31 March 2023, which are set out on pages 7 to 12.
## **Respective responsibilities of trustee and independent examiner**
The charity’s trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year (under section 145(5) (b) of the Charities Act 2011 (the Act) and that an independent examination is needed.
It is my responsibility to:
- Examine the accounts (under section 145 of the Act) ;
- Follow the procedures laid down in the General Directions given by the Charity Commissioners
- (under section 145 (5) (b) of the Act ; and
- State whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
I conducted my examination in accordance with the General Directions for Independent Examination issued by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking of explanations from you as trustee concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.
I wish to record my thanks to the Board for its cooperation during the difficult circumstances arising from the pandemic. My audit relied on the electronic transfer of data rather than prime documents, never the less I was able to conclude all the neccessary checks to form my conclusions
## **Independent Examiner’s Statement :**
In connection with my examination, no matter has come to my attention:
1. which gives me reasonable cause to believe that in any material respect the requirements :
- to keep proper accounting records in accordance with section 41 of the Act
- to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act,
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEE OF THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND CONT’D**
Name : Mr R Dolbear
Signature :
Relevant Professional Qualification : CPFA
Address : 11 Hen Parc Avenue, Upper Killay, Swansea, SA2 7HA
Date :
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
||**Unrestricted**
**Funds**|**Restricted**
**Funds**|**Endowment **
**Funds**|**Total Funds **
**31/03/23**|**Total Funds**
**31/03/22**|
|---|---|---|---|---|---|
||**£**|**£**|**£**|**£**|**£**|
|**Income & Endowments from :**||||||
|Donations Received
Charitable Activities
Other Trading Activities
Estate Rental Income
Investments Income
Repayment of Grant
Other
**Total**
**Expenditure On :**
Raising Funds
Charitable Activities
Other
**Total**
**Net Income (expenditure)**
**Transfers between funds**
**Net Income/Expenditure**
**Other recognised gains (losses):**
**Total Other Gains & Losses**
**Net movement in funds**
**Reconciliation of funds :**
Gains/(losses) on disposal/revaluation of
assets
Unrealised gains (losses) on investment
assets|1,842
23,112
0
876
**25,830**
6,213
24,000
256
**30,469**
**-4,639**
12,377
-13,131
**-754**
**-5,393**|**0**
**0**
**0**
**0**
**0**|**0**
**0**
**0**
**0**
**0**|1,842
23,112
0
876
**25,830**
6,213
24,000
256
**30,469**
**-4,639**
12,377
-13,131
**-754**
**-5,393**|1,835
12,018
1,297
325
**15,476**
4,652
33,650
94
**38,395**
**-22,919**
-16,270
**-16,270**
**-39,189**|
|Total funds brought forward|1,227,495|||1,227,495|1,266,684|
|Total funds carried forward|**1,222,102**|**0**|**0**|**1,222,102**|**1,227,495**|
Note
io
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND BALANCE SHEET AS AT 31 MARCH 2023**
||**3/31/2023**
**£**
**Total**
**Funds**|**3/31/2022**
**£**
**Total**
**Funds**|**Notes**|
|---|---|---|---|
|||||
|**Fixed Assets :**
Intangible Assets
Tangible Assets
Heritage Assets
Investments
**Total fixed assets**
**Current Assets :**
Stocks
Debtors
Investments
Cash at bank and in hand
**Total current assets**
**Liabilities**
Creditors : Amounts falling due within one year
**Net Current Liabilities**
Creditors : Amounts falling due after more than one year
Provisions for Liabilities
**Total net assets**
**The funds of the Charity**
Endowment funds
Restricted Income funds
Unrestricted funds
Revaluation reserve
**Total Unrestricted funds**
**Total charity funds**|162,000
296,940
**458,940**
11,989
720,000
34,765
**766,754**
-3,591
**-3,591**
**1,222,102**
**1,222,102**
**1,222,102**
**1,222,102**|184,000
310,071
**494,071**
9,516
620,000
126,125
**755,640**
-22,216
**-22,216**
**1,227,495**
**1,227,495**
**1,227,495**
**1,227,595**|**10**
**9**
**12**
**9**
**11**
**13**
**8**|
|||||
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. Accounting Policies**
## **General**
The Financial statements have been prepared in accordance with the accounting policies set out in page 10 to 16 and comply with the Charity's Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities : Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for Smaller Entities (the FRSSE) (effective 1 January 2015).
## **Basis of Accounting**
The accounts have been prepared using the accruals basis.
## **Investments**
Investments have been valued at market value, in accordance with the SORP.
## **2. Income on Deposits**
## **Short Term Deposits**
The Welsh Church Acts Fund has investments managed by the City & County of Swansea. Previously this was invested wholly on seven days notice with the interest rate based on the Money Market’s seven-day rate. However, with the prominence of falling rates some of this has been channelled to short term fixes to sustain income levels whilst maintaining an acceptable level of liquidity.
Consequently the interest earned by seven days notice investment in 2022/23 was £1,556 and the interest rate applied was 3.89%. The fixed investments realised £7,964.47 at an average rate of 2.69%.Total interest accrued for the year was £4,133.46.
The Trust’s current account, used for operational purposes is with Lloyds Bank. No interest is earned on a credit balance, as a consequence balances are kept at a minimum where possible.
## **Long Term Deposits**
The Welsh Church Act Fund has investments in Treasury Stock, which is managed by Fieldings Investment Management Ltd. Interest is received half-annually on these investments. The stocks held as at 31st March 2023 were as follows:
|**Holdings**|**£**
**Market**
**Value**
**31/03/22**|**£**
**Market**
**Value**
**31/03/23**|**£**
**Dividend**
**2022/23**|
|---|---|---|---|
|2.25% Treasury Gilt 2023
2.00% Treasury Gilt 2025
5.875% National Grid 2024|93,801
102,190
114,079|91,896
96,450
108,593|2,081
2,000
6,198|
|**Total**|**310,071**|**296,940**|**10,279**|
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **3. Estate Rental Income**
The Welsh Church Act Fund receives rental income from various properties. These properties are mainly located in the Vale of Glamorgan and generated income of £1,842 during 2022/23.
## **4. Miscellaneous Income**
A total of £734.52 was reclaimed from City & County of Swansea for the VAT element of invoices paid from the Fund during the year.
## **5. Grants to Organisations**
A total of £24,000 was paid out in Grants from the Fund in 2022/23. A comprehensive list of grants appears on Page 2 of this report.
## **6. Management and Administration**
The total cost of management and administration for 2022/23 was £6,468 This was made up of the following charges :
The City and County of Swansea levy a fee of £2,500 for administering the Fund.
Management fees are paid to Fieldings Investment management Ltd for Broker Services half annually. Fees are paid at 0.0025% of the Market Value of the investments as at 30th September and 31st March. The total amount paid for 2021/22 was £1,893
Auditors Fees of £200 for an Independent Examination of 2021/22 accounts.
LEI Registration Fee of £78
Lloyds Bank for Service Charges of £6
Valuation and Preperation Fees in relation to the sale of land of £1,620
Overseas Custoday Charge in relation to External Investments of £30
Return of Funds incorrect banked into the WCATF Account of £141
## **7. Unrealised Gains on Investments Assets and Revaluation on Disposal**
The unrealised loss on external gilts for 2022/23 was £13,131 – see Note 9 below Note 9 below.
The unealised gain for the revaluation on disposal for 2022/23 was £12,377 - see Note 9 below
## **8. Analysis of Funds**
|WCAF
**Restricted**
**Funds**|**Receipts**
1,227,495
25,830
-30,469
0
-754
1,222,102
**Balance @**
**1/4/22**
**Utilised/**
**Realised**
**Transfer &**
**Losses**
**Unlrealised**
**Gains &**
**Losses**
**Balance @**
**31/3/23**|
|---|---|
||**1,227,495**
**25,830**
**-30,469**
**0**
**-754**
**1,222,102**|
## **THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **9. Investments**
|Additions (MV)
Disposals (MV)
Net unrealised investment gains/(losses)
**10. Tangible Fixed Assets**
Market Value as at 1stApril 2022
Market Value as at 31stMarch 2023
Book Cost as at 31stMarch 2023|**£**
**£**
**£**
310,071
620,000
930,070
750,000
750,000
-650,000
-650,000
-13,131
-13,131
**Treasury**
**stock**
**Short term**
**deposits**
**Total**|
|---|---|
||296,940
720,000
1,016,939|
||302,073
720,000
1,022,073|
|||
|Additions
Disposals
Revaluation
**11. Cash in Bank and In Hand**
As per Bank Statement 31st March 2023
**12. Debtors**
Debtor Balance 2021/22 b/f
CHARLES STANLEY CO
Mr I V Watters
Income on Internal Investments to 31/03/22 (Unpaid Interest)
Income on External Gilts to 31/03/22 (Unpaid Interest)
Estate Rental (Income not received during 2021/22)
City & County of Swansea - VAT Reclaim
CHARLES STANLEY CO
Income on Internal Investments to 31/03/23 (Unpaid Interest)
Income on External Gilts to 31/03/23 (Unpaid Interest)
City & County of Swansea - VAT Reclaim Fieldings
Estate Rental (Income not received during 2022/23 iro 2021/22)
Valuation at 1stApril 2022
Valuation as at 31stMarch 2023|**Freehold**
**reversions**
**£**
184,000|
|---|---|
||0
-34,377
12,377|
||**162,000**|
||**£**
**34,765**
**£**
**9,516**
-6,198
-663
-851
-1,134
-345
-325
6,228
4,133
1,134
148
345|
**11,989**
**13. Creditors**
|Creditor Balance 21/22 b/f
Various - WCA Grants
Audit Fee - WCA Accounts 2021/22
WCA SLA 2021/22
Professional Fees - Management Expenses to 31/03/22
Audit Fee - WCA Accounts 2022/2
WCA SLA 2022/2
Professional Fees - Management Expenses to 31/03/23|**£**
**22,216**
-18,700
-200
-2,500
-816
200
2,500
891|
|---|---|
||**3,591**|
**THE CITY AND COUNTY OF SWANSEA WELSH CHURCH ACT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **14. Commitments and Contingencies**
The Welsh Church Act Fund had no commitments and contingencies as at 31st March 2023
## **15. Related Party Transactions**
The charity’s trustee is the City and County of Swansea which is therefore a related party. The charity’s transactions and balances with the trustee were in relation to the charity’s short term deposits as set out in notes 2 and 9 and are summarised below;
|**Balance owed to charity at 1 April 2022**
New Investments during year
Withdrawal made during year
Transfer to Current Account
Interest income accrued on investment
Interest paid out to Charity
**Balance owed to charity at 31 March 2023**|**614,076**|
|---|---|
||750,000
-650,000
0
4,133
-9,520|
||**708,689**|