2022-12-31-accounts - Chalfont St Peter Curate's Endowment Fund

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CHALFONT ST PETER

CURATE’S ENDOWMENT FUND

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2022

Charity registra,on number: 1093547

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

CONTENTS YEAR ENDED 31 DECEMBER 2022

	Page
Report of the Trustees	2
Statement of Financial Ac,vi,es	7
Balance Sheet	8
Notes to the Financial Statements	9 - 11

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

INTRODUCTION

This report is submiOed to the Charity Commission for the year to 31 December 2022.

The accounts accompanying this report have been prepared in accordance with the accoun,ng policies set out in Note 1 aOached thereto.

AIMS AND PURPOSE

the religious and other charitable work of the Church of England in the Parish of Chalfont St Peter for the benefit of the whole community. Specifically, relevant Charity Commission methodology classifica;ons are:

Provides Buildings/Facili;es/Open Space
Makes grants to organisa;ons

with provision of the following services:

Religious ac;vi;es
Accommoda;on/housing
to other chari;es or voluntary bodies

The Endowment Fund is held by Diocesan Trustees (Oxford) Limited, and the Chalfont St Peter PCC (“the trustees”) is the Managing Trustee. During 2020, the trustees con;nued to manage the Fund with the following objec;ves:

To preserve and enhance the value of the Fund.
Of The Ecclesias;cal Parish Of Chalfont St Peter (“The PCC”) – itself focused upon religious ac;vi;es

The trustees an;cipate no unusual fund-raising ac;vi;es during 2023 but have made the decision to con;nue with the let of the property, 67 Fieldway, for a minimum period of one year. Subject to sa;sfactory returns on investment, they intend to make further grants to the Chalfont St Peter PCC, par;cularly from le\ng income, while maintaining the value of the Fund.

PERFORMANCE

Value

The Fund is largely invested in the property at 67 Fieldway, Chalfont St Peter, SL9 9QS. The property is in generally good condi;on following substan;al work in 2014 and reconstruc;on of the raised pa;o, associated retaining walls and steps in 2016. The tenants have raised concern regarding internal damp. Part has been iden;fied as a consequence of a blocked valley gu`er and cured, while inves;ga;ons are in hand to ascertain whether further work is required. The chimney needs repoin;ng and PCC are allowing for some more substan;al maintenance expenditure in 2023.

The property was valued by two experienced estate agents in the village in the autumn of 2020 at £600,000 – £650,0000 and the lower value was included in the accounts. Local estate agents with knowledge of the road, advise an increase of 13% (i.e. to £678,000). The insured “rebuild” value is £469,361.

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

The balance of the Fund’s investments provided a total annual return (unrealised gain/(loss) plus interest and dividends) in the year of minus 8.89% (2021 = 17.28%, 12020 = 9.67%, 2019 = 22.15%). In view of its low interest rate, the deposit account was used in the year to augment grants to the PCC.

Accommodation

As planned and noted within the 2020 Annual Report, arrangements with the Diocesan Trustees (Oxford) Limited to let the property were completed and tenants took occupa;on on 29[th] January 2021. Rela;onships with the tenants have remained good and the trustees intend to nego;ate a renewal of the lease for another year.

Grants

The trustees made Grants to the PCC totalling £39,425 funded by le\ng income, dividends and release of £7,000 from deposit account.

FINANCIAL REVIEW

Overview

Overall, the year ended with an increase in funds of £27,312 (2021 =£47,508; 2020 = £220,958) comprising:

opera;ng profit/(loss) including rental income, less grants, of (10,685), (2021= profit
£4,567; 2020 = profit £2,341)
unrealised gain/(loss) on investments of (£40,003) (2021= gain £42,910; 2020 = gain
£18,647)
revalua;on of property of £78,000 (2021 = nil; 2020 = £200,000)

Total funds at 31[st] December 2022 comprised:

● Property:	£678,000
● Investments:	£301,335
● Cash at Bank:	£4,338
TOTAL:	£983,673

Budget Forecas?ng

year ahead and income from le\ng is considered reasonably secure. The trustees therefore an;cipate that the Fund will again be able to make further grants to the PCC while covering rou;ne maintenance costs and retaining a small surplus.

Reserves Policy

Such reserves as the Trustees consider necessary for foreseeable eventuali;es were previously held within the current and deposit accounts. However, no;ng the substan;al sum growing in the investment porlolio and small return on the deposit account, it was decided that sale of investments could be allowable in the event of unforeseen costs arising.

The Trustees consider the Fund’s property and investment porlolio as unavailable for any foreseeable opera;onal expenditure and to be maintained for its charitable ac;vi;es. They are not therefore regarded as viable reserves for

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

assets could be realised. The Trustees do not currently intend to place further funds into long-term investment.

Risk Policy

place as noted below:

▪ Domes;c Risks: The primary asset of the Fund is its property at 67 Fieldway, which is used as a family home. Normal domes;c landlord risks – Fire and Theo (of the limited Fund cha`els), Health & Safety are insured with the Ecclesias;cal Insurance Group

▪ Weather: Roofs and drains are periodically checked.

▪ as required.

▪ Commiee meets regularly to review maers of income and expenditure and reports to the PCC through quarterly Accounts and wri`en overview.

▪ 2018 are ongoing risks to the porlolio but, in the long term, sustained increase in both, as in the past, is an;cipated.

STRUCTURES, GOVERNANCE AND MANAGEMENT

Trustees

The Managing Trustee of the Fund is the Parochial Church Council of the Parish of Chalfont St Peter. The method of appointment of PCC members is set out in the Church Representa;on Rules. All those who a`end its services are encouraged to register on the electoral roll and stand for elec;on to the PCC. Induc;on of new Trustees is facilitated by a welcome address at the first PCC mee;ng of the new year, comprehensive guidance on Diocesan websites and occasional, voluntary training courses run by the Diocese.

PCC members who served at any 2me from 1 January 2022 to 31[st] December 2022

Incumbent : period) Clergy: Dec) Dec)

Revd. John Goodman (Absent f during part Revd. Wendy Graham (Co-opted to May + from Revd. Jim King (Co-opted to May + from

Licensed Lay Ministers:

Miss Lydia Lee

(To August)

Churchwardens:

Mr. Bob Older (To May) Mrs Clair McCoy (To May) Mrs Lorraine Hardy (From May)

Elected members of Deanery Synod :

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

Elected 2020 Mrs Mary Webster Co-opted 2020 Mrs Ann Geary Vacancy Elected Lay Members of PCC Elected 2018 (re-elected May) Dr. Michael Baxendine (Lay Chairman) Mr. John Harwood Mr. Richard Simon (To April) Elected 2019 Mr. Timothy Mears Elected 2020 Mr. Grenville Dixie Mrs Meriel Garnham Mr. Ian HackeW (To April) Mrs Sheila Johnson Mrs Jessica Redman Mrs Ann Middleton Mrs Johanna Dickinson (To May) Elected 2021 Mrs Ann Geary Dr. Michael Baxendine Elected 2022 Mrs Paddy Hague Mr. Kenneth Hodgson Mr. Nicholas Thompson Mrs Alexandra Rice (To December)

Independent Examina?on

Although total income (£29,186 exceeded the £25,000 threshold, net income/expenditure, (excluding revalua;on of property) aoer grant-making was (£10,685) in the period – i.e. less than £25,000. The Trustees have not commissioned an independent examina;on. (In 2016 the charge for independent examina;on - £1,692 - increased the Fund’s overall costs by 17% and in view of this dispropor;onate charge, the Trustees have subsequently not submi`ed the Fund’s accounts to independent examina;on)

ADMINISTRATIVE INFORMATION:

Telephone: 01753 880067

The registered charity number is 1093547

RELEVANT ORGANISATIONS

Bank: Barclays, Market Place Chalfont St Peter

Insurers: Ecclesias;cal, Beaufort House, Brunswick Road, Gloucester.

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

Approved by order of the Trustees on (date of approval) ………………………………………………………………….

and signed on their behalf by (name)

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Position……………………………………………………………………………………………………………………………………………………

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Signature……………………………………………………………………………………………………………………………………………………

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Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020

2022 £	2021 £	2020 £
8,969	8,674	8376
20,175	17,730	-
42	4	30
29,186	26,408	8,406

-	1,534	1,847
446	407	96
-	519	898

-	-	696
-	-	291
-	(27)	2,237

39,425	19,377	3,000

39,871	21,810	9,065
(10686) (40,003) 78,000 27,313 956,391 983,673
	(5,734)	(658)

	42,910	18,647

	-	200,000

	47,508	217,988
	908,883	687,895
	956,391	905,854

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

BALANCE SHEET YEAR ENDED 31 DECEMBER 2020

	Note	2022 £	2021 £	2020 £
FIXED ASSETS - PERMANENT ENDOWMENT
Tangible fxed assets	2,4	678,000	600,000	600,000
Investments	2,4,5,6	301,335	341,338	298,428
TOTAL FIXED ASSETS	4	979,335	941,338	898,428
CURRENT ASSETS - UNRESTRICTED	8
Deposit	3	122	7,080	7,076
Cash at bank and in hand	3	4,216	7,943	3,380
TOTAL CURRENT ASSETS	8	983,673	956,361	687,895
CURRENT LIABILITIES - UNRESTRICTED	7
Creditors	7.1		0	(30)
Accruals	7.2		0	(3,000)
NET ASSETS		983,673	956,361	905,854

signed on their behalf by (name)

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Position……………………………………………………………………………………………………………………………………………………

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Signature……………………………………………………………………………………………………………………………………………………

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Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for investment assets, which are shown at fair value.

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 adoption of the 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) as amended by the Update Bulletin 1 for accounting periods beginning on or after 1 January 2016 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn. The financial statements are prepared in accordance with the Charities Act 2011.

The Curate’s Endowment Fund constitutes a public benefit entity as defined by FRS 102. The trustees consider that there are no material uncertainties about the Curate’s Endowment Fund’s ability to continue as a going concern. With respect to the next reporting period, the most significant areas of uncertainty are the maintenance of investment income at current levels plus inflation and the sufficiency of budgeted allowances for upkeep of fabric and infrastructure.

2. INCOME

2.1 Investment Income

Dividends and interest are accounted for when due and payable. Tax recoverable on such income is recognised in the same accounting year.

Rental income from the letting of the Fund property is recognised when the rental is due.

2.2 Gains and losses on investments

Realised gains or losses are recognised when the investments are sold.

Unrealised gains or losses are accounted for on revaluation of investments at 31st December.

3. EXPENDITURE

Grant Making

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the charity.

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

4. FIXED ASSETS

4.1 Tangible Fixed Assets

The property owned by the fund is valued at the market value when last valued as at 31st December 2020. No depreciation is provided for. Any permanent change in value will be accounted for when the property is next revalued.

4.2 Investments

Investments are valued at market value at 31st December each year

4.3 Current Assets

Amounts owing to the Fund at 31st December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectable.

4.4 Classification of Assets

Fixed assets, representing capital in the fund are classified ‘permanent endowment’. Current assets, representing retained income are classified ‘unrestricted’.

5. PROPERTY

The property was occupied by a church staff member, free of charge, until mid-October 2020 and, after necessary preparations, was let to third parties from 29[th] January 2021.

6. RETURN ON INVESTMENT (ROI)

Investment	2022	2021	2020
67 Fieldway	13%	n/a	50%
Invested Funds	(8.89%)	17.28%	9.67%

The return on 67 Fieldway reflects revaluation in 2022 with previous valuation in 2020 – an average in The period since last valuation of 6.5%

Investments comprise shares in the Church of England Central Board of Finance (CBF) Income Fund managed by CCLA. Total Annual Return on investments includes unrealised Gains/Losses and Dividend

31stDecember 2022 No. of Shares Market Value Historical Cost 14,595 £301,335 £64,885	31stDecember 2021 No. of Shares Market Value Historical Cost 14,595 £341,338 £64,885

Shares were originally purchased in 1988

Annual Report & Financial Accounts of Chalfont St Peter Curate’s Endowment Fund to 31 December 2022

7. LIABILITIES

7.1 Creditors None 7.2 Accruals None

8. MOVEMENT IN FUNDS

	Opening	Income	Expenditure	Investment Gain/(Loss)	Closing
Endowment	941,338	-	-	37,997	979,335
Unrestricted	15,023	29,186	(39,872)	-	4,338
TOTAL	956,361	29,186	(39,872)	37,997	983,673

9. TRUSTEE REMUNERATION

None of the trustees or the key management of the PCC or related persons received any remuneration or reimbursement of expenses from the Fund during the year (2021: £Nil).