## **NEATH PORT TALBOT COUNTY BOROUGH COUNCIL**
# **WELSH CHURCH ACT TRUST FUND**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31[ST] MARCH 2024**
**REGISTERED CHARITY NUMBER: 1076440**
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**Neath Port Talbot Welsh Church Act Fund**
## **Report of the trustees for the year ended 31[st] March 2024**
The trustees present their annual report and financial statement for the charity for the year ended 31[st] March 2024.
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1[st] January 2015.
## **Objectives and activities**
The purpose of the Fund is to receive grant applications from charities or voluntary bodies which are based in, active in, or provide significant benefits to some or all of the residents of the Neath Port Talbot County Borough area.
The Fund furthers its charitable purposes for the local public benefit through its grant making policies which cover the following areas:
- Educational
- Libraries, museums, art galleries, etc.
- Relief of poverty
- Advancement of religion
- Other purposes beneficial to the community
- Relief in sickness
- Welfare of elderly persons
- Social and recreational
- Aesthetic, architectural, historical and scientific matters
- Medical and social research, treatment, etc.
- Probation, etc.
- Visually impaired or blind individuals
- Emergencies or disasters
- Other charitable organisations whose purposes are consistent with the provisions included above.
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## **Grant making policy**
## **Welsh Church Act Fund Guidelines for Grant Applications**
- a) Each application will be considered on its merits.
- b) Grants will only be awarded to charities and voluntary bodies which are based in, or active in, or provide significant benefits to some or all of the residents of the Neath Port Talbot County Borough area.
- c) Grants will only be awarded to individuals in exceptional circumstances.
- d) Grants will not normally exceed £1,000 and in exceptional circumstances £4,000 per applicant and successful applicants will not normally be reconsidered for a further grant within 3 years of the date of approval of the last grant.
- e) Grants will have a time limit for the take up of said grant of two years from the date of approval.
- f) Grants will not normally be awarded where the service could be dealt with out of the annual budget of the Council's service Committees activities or by other public bodies.
- g) Grants will not normally be awarded where they would commit the fund to regular annual payments nor will recurring annual expenses be supported.
- h) Grants will only be made out of the income of the fund, preserving the Fund's capital assets.
- i) Priority will be given to applications which are of significant benefit to the Neath Port Talbot County Borough area.
- j) Grant aid will not normally cover the full cost of a project/proposal and normally will be approved at 25% of actual costs incurred up to the maximum as outlined in condition (d) above. The grant of £4,000 will only be approved where expenditure exceeds £50,000.
- k) Organisations assessed as being able to meet the cost (e.g. by size or nature) are unlikely to receive any grant aid.
- l) Grants towards work of a structural nature will only be considered where:
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- there is evidence that a professional assessment has been made of the works;
- the applicant organisation can demonstrate that there is no other impediment to work proceeding at an early date (e.g. planning permission).
- m) In the case of Churches and Chapels grants will only be approved for the repair of the fabric of buildings which are more than 50 years old and of the highest architectural and historic interest. Church halls, however, where available and used significantly by the public for nonreligious purposes, will not be subject to these criteria.
- n) No retrospective applications are considered.
- o) The Panel will take into account the Church membership and the normal size of the congregation.
- p) In the case of students undertaking further Education courses, contributions towards the costs of individual instruments or pieces of equipment etc., will be made as follows - 50% of all costs over a threshold of £2,000 up to a maximum grant of £1,500.
## **Grants awarded**
No grants have been paid out of the Fund in 2023/24.
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The Fund trustees have approved the following grants:
**----- Start of picture text -----**
2004/05 Musica Rediviva Church organ manuscript 4,000
2019/20 The Rectorial New heating system and 4,000
Benefice of external remedial works to
Aberavon - St preserve and maintain the
Mary's Church fabric of the building
2022/23 Sardis English Grant assistance towards 1,000
Baptist Church costs of works to
redecorate entrance,
staircase x 2, small chapel
& kitchen area.
2023/24 St Anne's Church, Grant assistance towards 4,000
Tonna costs of repair works to the
church spire.
Total grants approved but not committed 13,000
**----- End of picture text -----**
Although the Fund has approved these grants, they were not drawn down or committed as at the 31st March 2024. There is no accrual in the accounts, as the grant recipients had not demonstrated that they fulfilled performance conditions.
## **Structure, governance and management**
The Fund is a registered charity, number 1076440. The Charity is governed by the Welsh Church Act 1914 and the Welsh Church Act (Designation and Specification) Order 1996.
The Welsh Church Act Fund was established from the proceeds and assets of the disestablishment of the Church in Wales and was originally created in 1914. The assets were distributed evenly amongst the former county councils in Wales, and then divided between the Welsh Unitary Authorities when they were formed in 1996, with Neath Port Talbot County Borough Council taking responsibility for the share of the Fund included in this report.
The Trustee to the Fund is Neath Port Talbot County Borough Council, which has delegated responsibility to the Cabinet (Finance) Sub Committee, who consider applications received for grants from the Fund and makes decisions on whether they should be granted or not. The Fund does not directly employ any staff, with the day to day administration and the processing and handling of applications prior to consideration being
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managed by the Director of Finance. A proportion of his team’s time is charged to the Fund.
## **Reference and administrative information**
## **The registered address is:**
Neath Port Talbot County Borough Council Finance and Corporate Services Directorate Civic Centre Port Talbot SA13 1PJ
## **The Trustee is:**
Neath Port Talbot County Borough Council, with responsibility delegated to the Cabinet (Finance) Sub Committee.
The following advisors have assisted the trustees in the year:
**Honorary Treasurer:** Mr Huw Jones Director of Finance Neath Port Talbot County Borough Council Civic Centre Port Talbot SA13 1PJ
## **Independent Examiner:**
Mr Matthew Edwards On behalf of the Auditor General for Wales 1 Chapter Quarter Tyndall St Cardiff CF10 4BZ
## **Bankers:**
Santander Commercial Bank Bridle Road Bootle Merseyside L30 4GB
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## **Trustees’ responsibilities in relation to the financial statements**
The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom accounting standards (UK Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charity and of the resources and application of the resources of the charity for the accounting period. In preparing the financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently
- • Observe the methods and principles in the applicable Charities Statement of Recommended Practice
- Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the appropriate Act and the applicable Charities Regulations. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees 10[th] July 2024 and signed on their behalf by:
Huw Jones **Honorary Treasurer**
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## **Report of the independent examiner to the trustees of Neath Port Talbot County Borough Council Welsh Church Act Trust Fund**
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## **Neath Port Talbot Welsh Church Act Trust Fund**
## **Statement of Financial Activities for the year ending 31[st] March**
|**Incoming resources**
Investment income
Estate Rental income
**Total Income**
**Resources expended**
**Governance/admin costs:**
Management and administration
Governance costs
**Expenditure on charitable activities:**
Grants
**Total expenditure**
**Net income/(expenditure) before**
**investment gains/(losses)**
Gains/(losses) on investment assets
**Net movements in funds**
**_Reconciliation of Funds_**
Total Funds brought Forward
**Total Funds Carried Forward**|**Note**|**Total**
**Unrestricted**
**Funds**
**2022/23**
**£**|**Total**
**Unrestricted**
**Funds**
**2023/24**
**£**|
|---|---|---|---|
||2
3
4
5
6
7|9,622
338|26,190
338|
|||**9,960**|**26,528**|
|||(2,922)
(1,220)
-|(2,952)
(1,009)
-|
|||**(4,142)**|**(3,961)**|
|||5,818
68,801|22,567
1,600|
|||**74,619**
613,586|**24,167**
688,205|
|||**688,205**|**712,372**|
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## **Neath Port Talbot Welsh Church Act Trust Fund**
## **Balance Sheet as at 31[st] March**
**----- Start of picture text -----**
Note 31-Mar-23 31-Mar-24
£ £
Fixed Assets
Tangible Investment Assets 8 160,108 161,708
Total Fixed Assets 160,108 161,708
Current Assets
Debtors 9 57 65
Short Term Investments 10 529,939 552,682
Total Current Assets 529,996 552,747
Liabilities
Creditors: Amounts falling due within 1 year 11 (1,899) (2,083)
Net Current Assets 528,097 550,664
Total Net Assets 688,205 712,372
The Funds of the Charity
Unrestricted Income Funds 12
Fund Balance 537,785 537,785
Income Accumulation Account 150,420 174,587
TOTAL CHARITY FUNDS 688,205 712,372
**----- End of picture text -----**
## The following notes form part of these accounts.
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## **Neath Port Talbot Welsh Church Act Trust Fund**
## **Notes to the accounts**
## **1. Accounting Policies**
## **a) Basis of preparation and assessment of going concern**
- The financial statements have been prepared in accordance with the requirements of the Welsh Church Act and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from January 2015.
The financial statements have been prepared to give a “true and fair” view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a “true and fair view”. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) issued on the 16th July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1st April 2005, which has since been withdrawn.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to the accounts.
## **b)**
## **Fund structure**
The Welsh Church Act Fund was established from the proceeds and assets of the disestablishment of the Church in Wales and was originally created in 1914. The assets were distributed evenly amongst the former county councils in Wales, and then divided between the Welsh Unitary Authorities when they were formed in 1996, with Neath Port Talbot County Borough Council taking responsibility for the share of the Fund included in this report.
Funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
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## **c) Basis of Accounting**
The accounts have been prepared using the accruals basis and there has been no change to this accounting basis.
Income is recognised once the trust fund becomes entitled to the income and there is sufficient certainty that the income will be received and the amount receivable can be measured reliably.
Expenditure or the liability to spend is recognised as soon as there is a legal or constructive obligation committing the trust fund to that expenditure. All expenditure on governance and support services is accounted for on an accruals basis.
Grants payable are accrued where there is certainty that the funds will be drawn down. However, where grants awarded are subject to the recipient fulfilling performance conditions, the grant is only accrued at the time that the performance conditions are met.
## **2. Investment Income**
The Welsh Church Act Fund holds short term cash deposits with Neath Port Talbot County Borough Council. These investments operate on an instant access basis, and interest is based on the Council’s return on its investments. The average interest rate for 2023/24 was 4.55% (2022/23 was 1.70%).
Details of short term deposits are provided at Note 10.
## **3. Other income**
The Welsh Church Act Fund receives rental income from various properties, land and wayleaves. Further details of the properties are included in note 8 to the Balance Sheet.
## **4. Management and Administration/Related parties**
The Fund has paid Neath Port Talbot Council £2,378 (2022/23 £2,354) for financial support services and £574 (2022/23 £568) for legal advice.
These payments are the only related party transactions within these accounts.
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## **5. Governance costs**
Wales Audit Office plans to charge £1,009.00 for their independent examination of the Fund.
## **6. Grants**
No grants have been paid out of the Fund in 2023/24.
The Fund trustees have approved the following grants.
**----- Start of picture text -----**
Year Name Purpose Maximum
approved value
£
2004/05 Musica Rediviva Church organ manuscript 4,000
2019/20 The Rectorial New heating system and 4,000
Benefice of external remedial works to
Aberavon - St preserve and maintain the
Mary's Church fabric of the building
2022/23 Sardis English Grant assistance towards 1,000
Baptist Church costs of works to
redecorate entrance,
staircase x 2, small chapel
& kitchen area.
2023/24 St Anne's Church, Grant assistance towards 4,000
Tonna costs of repair works to the
church spire.
Total grants approved but not committed 13,000
**----- End of picture text -----**
Although the Fund has approved these grants, they are not accrued in the accounts, as the grant recipients had not demonstrated that they fulfilled performance conditions by 31[st] March.
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## **7. Gains or losses on investment assets**
There was no sale of fixed investment assets during 2023/24 or 2022/23 and a net gain of £1,600 in the valuation of the investment assets during 2023/24. A full revaluation exercise was undertaken in 2022/23 which identified a net gain in investment assets of £68,801.
## **8. Tangible Investment Assets**
The tangible investment assets relate to holdings of agricultural land and buildings and freehold reversions. The valuer has undertaken an annual revaluation review which has resulted in a net gain of £1,600. Details of the holdings are as follows:
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**----- Start of picture text -----**
Details Value Revaluation Value
31-Mar-23 31-Mar-24
£ £ £
Vale of Neath
Residential Neath 80 Llantwit Road, Neath 31,300 1,600 32,900
-
Agricultural Land Llantwit Road Neath opp 6,500 6,500
St Illtyds Church
Agricultural Land Glebe under canal 100 - 100
Land Cadoxton Neath 5.4 Acres at Cwmbach 13,000 - 13,000
Road
Land Cadoxton Neath 3.74 Acres North of 11,200 - 11,200
Cwmbach Road
Land Cadoxton Neath 0.4 Acres South of 500 - 500
Cwmbach Road
Misc. Interest Cadoxton Neath Garage Site, Cwmbach 2,500 - 2,500
Road
Misc. Interest Cadoxton Neath Garage Site, Glebeland 2,500 - 2,500
Street
Land Cadoxton Neath Land and stream 1 - 1
adjoining 25 Church
Total 67,601 1,600 69,201
Vale of Neath - Wayleaves
Cadoxton Neath Land North West of 177 - 177
Cwmbach Road
177 - 177
Vale of Glamorgan - Agricultural
-
Peterson-Super-Ely Gwern y Gae Uchaf 27,400 27,400
Farm
Peterson-Super-Ely Backway Farm 64,500 - 64,500
Total 91,900 0 91,900
Vale of Glamorgan - Wayleaves
Peterson-Super-Ely East of the Fruit Garden 430 - 430
430 - 430
TOTAL FIXED ASSETS 160,108 1,600 161,708
**----- End of picture text -----**
## **9. Analysis of Debtors**
The debtors falling due within one year are as follows:
||**31-Mar-23 **|**31-Mar-24**|
|---|---|---|
||**£**|**£**|
|Estate rentals|57|65|
|**Total**|**57**|**65**|
||||
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## **10. Analysis of Short term investments**
The trust fund’s short term investments are held as deposits with Neath Port Talbot Council, with interest based on the average investment rate.
**----- Start of picture text -----**
31-Mar-23 31-Mar-24
£ £
Opening value 523,698 529,939
Additions/Investments 6,241 22,743
Total 529,939 552,682
**----- End of picture text -----**
## **11. Analysis of Creditors**
The creditors falling due within one year are as follows:
**----- Start of picture text -----**
31-Mar-23 31-Mar-24
£ £
Independent examination fees (1,774) (1,958)
Estate rental prepayments (125) (125)
Total (1,899) (2,083)
**----- End of picture text -----**
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## **12. Unrestricted Income Funds – analysis of net assets**
All of the trust’s funds are unrestricted and made up as follows:
**----- Start of picture text -----**
2022/23 2023/24
£ £
Fixed investment assets 160,108 161,708
Current assets 529,996 552,747
Current liabilities (1,899) (2,083)
Total 688,205 712,372
**----- End of picture text -----**
The movement in the income funds is:
**----- Start of picture text -----**
31-Mar-23 2023/24 31-Mar-24
Fund Income Expenditure Revaluation Fund
b/fwd gain/(loss) c/fwd
£ £ £ £ £
-
688,205 26,528 3,961 1,600 712,372
**----- End of picture text -----**
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