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2021-12-31-accounts

THE BISHOP OF SOUTHWARK’S LENT FUND

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Registered Charity number 1075122

THE BISHOP OF SOUTHWARK’S LENT FUND

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Fund was drawn down out of the Bishop of Southwark’s Lent Call, which was established in 1972, and was formalised by a trust deed dated March 1, 1998 and was then registered as a charity on April 15, 1999 with the registered number 1075122.

Objectives and activities

The objects of the Fund are to advance religion, in particular the Christian religion, to relieve poverty and to advance education by the provision of financial assistance to projects helping those in need in all parts of the world. It is also the object of the Fund to promote spiritual discipline, especially during Lent, in the Diocese of Southwark. The Trustees are required to stand possessed of the trust fund and to pay or apply the income and any part of the capital at their absolute discretion in furtherance of the objects of the Fund.

The Trustees, who are the bishops of the Diocese of Southwark, aim to meet the objectives of the Fund by annually selecting projects put forward to them for consideration, usually a mixture of projects based overseas and in the Diocese, with a substantial proportion being earmarked ultimately for the four Dioceses in Zimbabwe with which Southwark has Companion Links; information on projects for consideration should be sent to the secretary of the Fund at the address on page 5.

When planning the charity’s activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion & education and the relief of poverty. The charity has worked to enable ordinary people in the Link Dioceses in Zimbabwe to live out their faith by supporting mission and ministry as well as working with local people to develop projects that combat poverty and support educational development.

Activities and achievements in the year

Income recovered somewhat in 2021 after the difficulties of 2020. Donations into the fund rose from £23,278 in 2020 to £66,789, although donations continued to be received much later in the year than had been the case before the pandemic. This increase in income enabled the Trustees to greatly increase the level of grants given, and 2021 saw a return to funding the Diocesan Link Committees. The projects funded in 2021 are:

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Each of the above was awarded £3,500. £8,000 was also given to each of the Diocese’s link dioceses in Zimbabwe. Total grants made in 2021 were £49,500 (2020: £19,000)

Related party transactions

The Charity’s Trustees are the Bishops in the Anglican Diocese of Southwark. Each of these maintains a “Bishop’s Discretionary Fund”, which is available for use in any manner as the holder sees fit. During the accounting period, the Charity did not make any disbursement to the various Bishop’s Discretionary Funds.

In addition, each of the three Area Bishops is on the management body of their respective Diocesan “Link” Committee. During the accounting period, £32,000 was granted to these committees by the Charity (2020: £nil).

Bishop Karowei is Chairman of Together Southwark, which in 2021 was the recipient of a grant of £3,500.

Financial review

Financial performance

The Charity generated a surplus of £17,155 during the year (2020: £4,678). Total reserves have increased to £29,895 at the year end. The Trustees are content that this level enables the Charity to meet all foreseeable liabilities whilst not being excessive in the context of the continuing Covid uncertainties.

Income rose from £23,738 in 2020 to £66,789 in 2021. This increase is in part due to a legacy receipt of £13,333.

Operating expenses remained minimal (though CAF Bank have increased their charges during the year), and the Trustees are grateful to the Diocese of Southwark for continuing to provide administrative support to the Charity free of charge.

Given the transient nature of the funds and the relatively small balances involved, the Trustees consider it appropriate to keep the funds in an interest-bearing bank account rather than investing them in a more illiquid retail or charity-specific investment fund.

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Reserves policy

The Trustees have not considered it necessary to set a formal level of reserves which the Charity is required to maintain. The level of grant expenditure is entirely at the discretion of the Trustees and is set with reference to annual income. The cyclical nature of the Charity’s activities is such that it is generally possible to maintain sufficient funds in the bank to meet any liabilities as they fall due.

Principal risks and uncertainties

The Trustees have considered the risks inherent in the operation of the Fund and have taken steps to minimise such risks. As stated in the accounting policies, income is only recognised when it is received (with the exception of Gift Aid, which is accrued once the amount of the claim is known) and accordingly further income may be due to the Fund and such income be accounted for in future years if and when it is received. In order to mitigate the risks associated with remitting funds to Zimbabwe, the grants relating to Zimbabwe are paid to various UK-based sterling accounts held by the Episcopal Area Link Committees which are separately constituted bodies not under the control, direct or otherwise, of the Charity or the Diocese of Southwark.

Structure and governance

The Charity is governed by a trust deed dated 1[st] March 1998. It is an unincorporated charity, registered with the Charity Commission in England and Wales.

The Bishops – both Diocesan and Suffragan – of the Diocese of Southwark are by right the Trustees of the Charity. The current Trustees are listed in the Administrative Details section below. While the Trustees are also Trustees of the Southwark Diocesan Board of Finance, the management and finance of the two organisations are entirely separate.

Trustees’ responsibilities

The Trustees are responsible, under the provisions of the Charities Act 2011, for the preparation of accounts for each financial year which give a true and fair view of the state of affairs of the Fund and of its income and expenditure for the year. In preparing these financial statements, the Trustees are required to

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Administrative details

Trustees Bishop of Southwark – The Rt Revd Christopher Chessun (Chair) Bishop of Croydon – The Rt Revd Jonathan Clark (until 21 March 2022) The Rt Revd Dr Rosemarie Mallett (from 24 June 2022) Bishop of Kingston – The Rt Revd Dr Richard Cheetham (until 17 October 2022) Bishop of Woolwich – The Rt Revd Dr Karowei Dorgu Hon Treasurer Ms Ruth Martin Hon Secretary The Revd Dr Alun Ford Principal Address Trinity House, 4 Chapel Court, Borough High Street, London. SE1 1HW Advisers Bankers Hon. Independent Examiner CAF Bank Limited, Mr Mark Rhodes MA ACA, 25 Kings Hill Avenue, Trinity House, Kings Hill, 4 Chapel Court, West Malling. Borough High Street, Kent. ME19 4JQ London. SE1 1HW

Approved by the Trustees on 19 October 2022 and signed on their behalf by:

The Rt Revd Christopher Chessun Bishop of Southwark

The Rt Revd Dr Karowei Dorgu Bishop of Woolwich

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THE BISHOP OF SOUTHWARK’S LENT FUND

REPORT TO THE TRUSTEES BY THE INDEPENDENT EXAMINER ON THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Respective responsibilities of trustees and examiner

The Charity’s Trustees are responsible for the preparation of the accounts. The Charity’s Trustees consider that an audit is not required for this year under Section 144 of the Charities Act 2011 (the “Charities Act”) and that an independent examination is needed.

It is my responsibility to:

a) examine the accounts under Section 145 of the Charities Act, b) to follow the procedures laid down in the general Directions given by the Charity Commission (under Section 145(5)(b) of the Charities Act), and

c) to state whether particular matters have come to my attention.

Basis of independent examiner’s statement

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

Independent examiner’s statement

In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements:

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Mr M Rhodes MA ACA

Trinity House, 4 Chapel Court, Borough High Street, London. SE1 1HW

19 October 2022

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THE BISHOP OF SOUTHWARK’S LENT FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Charity number 1075122

Note
INCOME AND ENDOWMENTS
Voluntary income
2
Income from investments
TOTAL INCOME
EXPENDITURE
Charitable activities
3
Raising funds
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward
7		 2021
£
66,781
8
66,789
49,634
-
49,634
17,155
12,739
29,894		 2020
£
23,728
10
23,738
19,060
-
19,060
4,678
8,061
12,739

All income derives from continuing activities. The notes on pages 10 to 12 form part of these financial statements.

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THE BISHOP OF SOUTHWARK’S LENT FUND

BALANCE SHEET AS AT 31 DECEMBER 2021

Registered Charity number 1075122

Note
CURRENT ASSETS
Debtors
Cash at bank and in hand
4
CURRENT LIABILITIES
Creditors – amounts falling due within one year
5
TOTAL NET ASSETS
TOTAL FUNDS
Unrestricted		 2021
£
889
38,305
9,300
29,894
29,894		 2020
£
2,111
31,628
21,000
12,739
12,739

Approved by the Trustees on 19 October 2022 and signed on their behalf by:

The Rt Revd Christopher Chessun Bishop of Southwark

The Rt Revd Dr Karowei Dorgu Bishop of Woolwich

The note on pages 10 to 12 form part of these financial statements.

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THE BISHOP OF SOUTHWARK’S LENT FUND

STATEMENT OF CASH FLOWS AT 31 DECEMBER 2021

Registered Charity number 1075122

Net cash from operating activities
Cash flows from investing
activities:
Interest received
Net cash provided by investing
activities
Change in cash in the reporting
period
Cash at 1 January
Cash at 31 December
Reconciliation of net income
Net income at 31 December
Adjustments for:
Interest received
Movement in debtors
Movement in creditors
Net cash provided by / (used by)
operating activities
Cash in hand		 2021
£
£
6,669
8
8
6,677
31,628
38,305
17,155
(8)
1,222
(11,700)
6,669
38,305		 2021
£
£
6,669
8
8
6,677
31,628
38,305
17,155
(8)
1,222
(11,700)
6,669
38,305		 2020
£
£
32,917
10
10
32,927
(1,299)
31,628
4,679
(10)
16,440
11,808
32,917
31,628		 2020
£
£
32,917
10
10
32,927
(1,299)
31,628
4,679
(10)
16,440
11,808
32,917
31,628
38,305 31,628
17,155
(8)
1,222
(11,700)		 4,679
(10)
16,440
11,808
6,669 32,917
38,305 31,628

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THE BISHOP OF SOUTHWARK’S LENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting Policies

Accounting convention and basis of preparation

The accounts have been drawn up under the historical cost convention and have been prepared in accordance with the Statement of Recommended Accounting Practice for Charities 2015 and with applicable accounting standards (FRS102) on the accruals basis. The financial statements include all transactions for which the Trustees are responsible in law.

Fund accounting

The Charity operates a single Unrestricted fund, the balance of which is available for any purpose within the Charity’s objects.

Incoming resources

Incoming resources (donations and bank interest) are accounted for when received. Most of the donations are received in the months immediately following Easter, but some donations relating to a year’s Lent Call are not received until after the end of the accounting year on 31 December and are accordingly treated as income for the year in which they are received. Grants received which are subject to pre-conditions for entitlement specified by the donor which have not been met at the year-end are not recognised in the SoFA and are included in creditors.

Resources expended

Grants payable are accounted for when paid over, or when awarded, if that award creates a binding or constructive liability on the Trustees.

Valuation of time donated by volunteers

In accordance with paragraph 6.18 of the 2015 Charities SORP, time donated by volunteers is not valued in the accounts. This applies to members of staff of the Diocese of Southwark who provide services to the Lent Fund outside the terms of their Contracts of Employment.

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THE BISHOP OF SOUTHWARK’S LENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

2. Incoming resources

Voluntary income
Donations
Gift aid reclaimed
Legacies
Investment income
Bank interest
Total income
3. Expenditure
Charitable activities
Grants made (see Note 6)
Printing, postage and stationery
Bank charges
Total expenditure
4. Debtors
Gift aid recoverable
Other debtors
5. Creditors
Falling due within one year:
Grants awarded but not paid over		 2021
£
53,448
-
13,333
66,781
8
66,789
2021
£
49,500
-
134
49,634
2021
£
-
889
889

2021
£
9,300
 2020
£
27,280
-3,552
-
23,728
10
23,739
2020
£
19,000

-
60
19,060
2020
£
-
2,111
2,111
2020
£
21,000

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THE BISHOP OF SOUTHWARK’S LENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

6. Analysis of Grants made

Grants to Local Southwark organisations
Grants to support the Church in Zimbabwe
Grants Bishops’ Discretionary Funds for Zimbabwe-related
needs
Grants to other charitable organisations
Grants to individuals
Total Grants made		 2021
£
17,500

32,000

-
-
-

49,500		 2020
£
-
-
-
19,000
-
19,000

As noted in previous years, there are challenges in transmitting funds to Zimbabwe and therefore the grants to the Zimbabwean dioceses, when made, are paid into the bank accounts of the four diocesan link committees:

The link committees have close connections with the link dioceses and oversee the secure release of funds to Zimbabwe. The link committees along with the Bishops and the Dean make regular visits to Zimbabwe which includes visiting the projects supported by the Lent Fund and reporting back on progress.

7. Funds

The Bishop of Southwark’s Lent Fund operates a single General fund.

2021
2020		 Opening
balance
£
12,739
8,061		 Incoming
resources
£
66,789
23,738		 Resources
expended
Closing
balance
£
£
49,634
29,894
19,060
12,739

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