Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
(Registered Charity Number 1118759)
Annual Report
For the year ended 31 December 2021
Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
Annual Report for the year ended 31 December 2021
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|Contents|Pages|
|Legal and administrative information|i|
|Report ofthe trustees|2-3|
|Statement of|trustees’|responsibilities|4|
|Independent auditors’ report|5-7|
|Statement of|financial activities|8|
|Balance sheet|9|
|Notes to the financial statements|10-13|
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Legal and administrative information for the year ended 31 December 2021
Constitution
The Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund (“the Charity”) is an unincorporated organisation and a registered charity (No: 1118759). The Charity was registered on 11 April 2007.
Trustees
The trustees who served during the year andup to the date of approval of the financial statements were:
Dr Eryl Davies (appointed 12 May 2021) Parch O Aneurin Owen (retired on 25 May 2021) Miss Glynis Owen Parch Jonathan Hodgins Mr Idris O Hughes Parch Meirion Morris Parch Brian H Jones (retired on 30 November 2021) Mr Cliff Williams
Under the scheme governing the Charity, the trustees are all members of the Candidates and Training Department of the Presbyterian Church of Wales. There are a maximum of 4 ex officio trustees and 3 nominated trustees. The nominated trustees must be appointed by the Candidates and Training Department
Ex officio trustees are:
The General Secretary of the Presbyterian Church of Wales The Chairperson of the Candidates and Training Department The Secretary ofthe Candidates and Training Department The Treasurer ofthe Candidates and Training Department
Principal address
c/o The Presbyterian Church of Wales Tabernacle Chapel 81 Merthyr Road Whitchurch Cardiff CF14 1DD
Solicitors
ADVE Solicitors 33 High Street Lampeter Ceredigion SA48 7BB
Independent Auditors
Azets Audit Services Ty Derw Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB
Bankers
Barclays Bank ple 85 High Street Blackwood NP2 1ZA
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Report of the trustees for the year ended 31 December 2021
The trustees are pleased to present their report and the audited financial statements for the year ended 31 December 2021. The Charity was registered on 11 April 2007 and was formed from the formerAberystwyth Theological College and Scholarship Funds.
The information with respect to trustees, officers and advisors set out on page 1 forms part of this report. The financial statements have been prepared on a going concern basis in compliance with the applicable accounting standards in the United Kingdom including the Statement of Recommended Practice (SORP): Accounting and Reporting by charities in preparing their financial statements in accordance with the Financial Reporting Standard (FRS) applicable in the UK and Republic of Ireland (FRS 102).
Status and objectives
The Charity is the Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund. The Charity reports to the Presbyterian Church of Wales General Assembly through the Church’s Ministries Department.
The object of the Charity is to provide training for ministry for the Presbyterian Church of Wales.
Connected charity
The Charity is the Candidates and Training Department of the Presbyterian Church of Wales, Tabernacle Chapel, 81 Merthyr Road, Whitchurch, Cardiff, CFiq 1DD. The Charity receives an annual grant from the Presbyterian Church of Wales to assist with salaries, course and running costs. This grant amounted to £92,460(2020: £84,953).
Developments, activities and achievements
The main activity of the Charity is to provide training for the ministry ofthe Presbyterian Church of Wales.
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e The department is overseeing and supporting the training eight ministers, workers and candidates for the ministry;
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¢ The department continued to arrange virtual in-service training sessions for which there was an increased attendance;and
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e The Charity continues promote the Gap Year student programme at Coleg y Bala and provided a grant of £19,250 in 2021.
Results
During the year the funds of the Charity have been used to further the Charity’s objectives. The net surplus for the year was £33,742 (2020: deficit £16,599). The increase in net income is mainly attributable to an unrealised gain on investments in 2021 of £29,140 (2020: loss of £32,059).
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31
Report of the trustees’ for the year ended December 2021
Expenditure on charitable activity increased from £97,457 in 2020 to £112,421 in 2021,however there was asmallerincrease in income from £112,917in 2020 to £117,023in 2021. The results for the year are shown in the statement of financial activities on page 8.
The trustees are satisfied that the financial position at the period end is adequate to meet the ongoing requirements of the Charity with the continued support of The Presbyterian Church of Wales.
Reserves policy
The trustees policy is to maintain the amount of total reserves at a minimum of one years’ worth of expenditure. Reserves currently exceed this level with annual expenditure currently approximately £120,000 per annum. At this level the trustees believe they would be able to continue the current activities of the charity in the event of a drop in income. The trustees acknowledge the continuing support of the Presbyterian Church ofWales is essential for its long term viability.
Investment powers, policy and performance
The investments attributable to the Charity are held as part of the investment portfolio of the Presbyterian Church of Wales.
All investments are administered by Investec Bank ple in accordance with the guidelines set out by the Resources Department and Properties Board of the Presbyterian Church of Wales.
The performance is regularly monitored by means of detailed quarterly reports and a minimum of one meeting per annum with the investment manager.
Risk management
The trustees are undertaking a review of the current risk register, and updating it to reflectthe major risks to which the Charity is exposed and its risk management and internal control procedures in order to ensure that systems are in place to mitigate these risks.
Covid-19
Due to measures to combat the spread of Covid-19 the charity’s activities have been curtailed and staff were placed on furlough in both 2020 and 2021. Some training for candidates, ministers and workers continued on line during this period. The charity has sufficient reserves and investments should there be any of loss of income.
Governance of the Charity
During 2021 the trustees met twice via anonline platform.On aday to day basis the Charity was administered by the Academic Director Rev Bryn Williams,2 Training Co-Ordinators,and the central office of the Presbyterian Church of Wales. All liaise closely with the trustees when significant matters arise.
Public Benefit
In planning and reviewing its activities the Church has considered the Charity Commission’s guidance on public benefit and in particular the specific guidance on charities for the advancement of religion
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Statement of trustees' responsibilities
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
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e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; e make judgments and estimates that are reasonable and prudent; e state whether applicable accounting standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
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e 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 enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets ofthe charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the trustees
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Calvinistice es ® Methodiste or Presbyteriane Church of Wales CandidatesLJ and Traininges a Department Fund Independent auditors’ report to the trustees of Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
Opinion
We have audited the financial statements ofCalvinistic Methodist or Presbyterian Church ofWales CandidatesStatement of andFinancialTraining Activities, Department Balance Fund Sheet,for the andyear notesended to the31* financial December statements 2021 which andcomprise notes to thethe 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 UKand Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- giveraer athe true yearSsne andthen fair ended; viewnaeoftheandstateapplicationofthe charity's ofresources, affairs as includingat31% Decemberits income2021,and expenditure,and ofthe ¢ _ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and Basis» forhave opinionbeen preparedin accordance with the requirements of the CharitiesAct 2011. 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 charityresponsibilitiesin accordancefor thewithaudittheofethicalthe financialrequirementsstatementsthat sectionare relevantof ourtoreport.our auditWe areof the independent financial of the statementsin 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 trustecs' use ofthe going concern basis of accountingin the preparation of the financial statementsis appropriate.
Basedon the work we have performed,we have not identified any material uncertainties rela t o ingevents or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a periodof at least twelve months from when the[financial statements][ are] authorised for issue. Our responsibilities and the responsibilities ofthe trustees with respect to going concern are described in the relevant sections ofthis report.
Other information
The other information comprises the information included in the trustees 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, exceptto 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 or our knowledge obtained in the course ofthe audit or otherwise appears to be materially misstated. If[we] identify such material inconsistencies or apparent material misstatements, we are requiredto determine whether this gives rise to a material misstatementin the financial statements themselves. If, based on the work we have performed, we concludethat there is a material misstatement ofthis other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to reportby exception We have nothing to report in respect ofthe following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or * — sufficient accounting records have not been kept; or
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Calvinistic® @ e Methodist* or Presbyterianes Church of Wales Candidates® and Traininge s Department Fund Independent auditors’ report to the trustees of Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
- the parent charity's financial statements are not in agreementwith the accounting records and returns; or ¢ we have not received all the information and explanations we require for our audit. Responsibilities oftrustees
As explained more fully in the trustees’ responsibilities statement set out on page 4 the trustees are responsible for the preparation ofthe 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. Incontinue preparing as athe goingfinancial concern, statements, disclosing,the astrustees applicable, are matters responsible relatedfor assessing to going concernthe charity's and usingthe abilityto going concern basis ofaccounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit ofthe financial statements We have been appointed as auditor under section 145 ofthe Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 ofusers taken on the basis ofthese financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at:
. This description forms part of our auditor's report.
pmu to which the auditwas considered capable ofdetecting irregularities, including Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedureswebsite, to detect in line materialwith our misstatements responsibilities, in outlined respect of aboveirregularities, and on the including Financial fraua Council's We obtain and update our understanding ofthe entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement ofthe financial statements, whether due to fraud or error, design and perform provideauditaspena basis for responsive to our opinion.thoseThis includes consideration risks, and obtain audit evidenceof the riskthat of acts is sufficient by the entity andalgthat were to contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
claims«Enquiry of as wellmanagement as actual, suspected and thoseandeeallegedwithpaietgovernance around actual and potential litigation and
«Reviewing minutes of mectings ofthose charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations ofthe entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
Independent auditors’ report to the trustees of Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
Because of the inherent limitations of an audit, there is a risk that we will not detect including those leadingto a material misstatement in the financial statements or non-compliall irregul a rities,nce with regulation. This risk increases the more that compliance with a law or regulation is removed from the eventsinstancesand oftransactionsnon-compliance.reflectedThein riskthe offinancialnot detectingstatements, a materialas we misstatementwill be less likely resultingtobecome from fraudaware isof higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Use ofour report This(Accounts report is made solelyto the charity's trustees, as a body, in accordancewith Part4 of the Charities the charity'sandtrusteesReports) Rthos e gulamat t ersionswe 2008.are requiredOur auditto workstate tohasthembeeninundertakenan auditor'ssoreportthat weandmightfor no stao t eherto purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Azets Audit Services kSem Accountants & Statutory Auditors
Ty Derw
Lime Tree Court Cardiff Gate Business Park CF23 8AB
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Date: O%“Oe Qooyn
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Azets Audit Services is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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Calvinistice e e Methodiste or Presbyterianes Church of Wales Candidatese and Traininge e Department Fund
Statement of financial activities for the year ended 31 December 2021
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|Note|2021|2020|
|£|£|
|Income from:|
|Investment income|4|11,549|9,507|
|Grant from Presbyterian Church of|Wales|92,460|84,953|
|Donations and other income|13,014|18,457|
|Total|117,023|112,917|
|Expenditure on:|
|Charitable activities|2|112,421|97,457|
|Total|182,421|97,457|
|Net Income|4,602|15,460|
|Other recognised gains and losses:|
|Net (losses) / gains on investments|4|29,140|(32,059)|
|Net movement in fands|33,742|(16,599)|
|Reconciliation|offunds:|
|Total funds brought forward|706,669|723,268|
|Total funds|carried forward|740,411|706,669|
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All recognised gains and losses have heen included in the Statement of Financial Activities and the amounts included are derived from the continuing operations ofthe Charity.
The notes on pages to 10 to 13 form part of these financial statements.
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Calvinistic Methodist or Presbyterian Church of Wales Candidates and Training Department Fund
Balance sheet as at 31 December 2021
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2021 2020
Fixed Assets Note £ £
Investments 4 366,233 337,093
Current assets
Debtors 5 118,076 44,460
Cash at bank and in hand 304,763 360,351
422,839 404,811
Creditors: amounts falling due within one 6 (48,661) (35,235)
year _— = 2 =
Net current assets 374,178 369,576
Total assets less net current liabilities 740,431 706,669
Funds 740,411 706,669
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Approved by the Board of Trustees on17 May2022 and signed on its behalf by:
The notes at pages 10 to 13 form part of these financial] statements.
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Calvinistice e s Methodistes or Presbyteriane Church of Wales Candidatess and Traininge e Department Fund
Notes to the financial statements for the year ended 31 December 2021
1 Principal accounting policies
Basis ofpreparation
The financial statements have been prepared on a going concern basis, under the historical cost convention, and in accordance with the applicable accounting standards in the United Kingdom, the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” 2019 (SORP 2015), FRS 102 and in accordance with the Charities Act 2011, using consistently applied accounting policies.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to nearest £.
Income policy
Income from donations and legacies is recognised on a receivable basis when there is sufficient certainty of receipt and of the value of the incoming resource can be measured with sufficient reliability. Grants receivable from the Presbyterian Church of Wales are included as income in the year of receipt.
Recognition of expenditure
Expenditure is accounted for on an accruals basis.
Fixed asset investments
Listed investments are valued at bid market value. Profits and losses on sales of investments are calculated by reference to the opening carrying amount. Both profits and losses on disposals and unrealised surpluses or deficits arising on revaluation of investments are reported in the Statement of Financial Activities.
Fund accounting
All funds held by the Charity are unrestricted and can be used in accordance with the charitable objects at the discretion of the trustees.
Cash flow statement
The Charity has taken advantage of the exemption under FRS 102, paragraph 1.12(b), from preparing a statement of cash flows on the basis that it is a qualifying entity and its ultimate parent, Presbyterian Church of Wales, includes the charity’s cash flows in its own consolidated financial statements.
Taxation
The Candidates & Training Department Fund is a registered charity and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried out in the furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.
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ee e ; Calvinistic Methodist« or Presbyterian° Church of Wales Candidatese and Traininge e Department
Notes to the financial statements for the year ended 31 December 2021
2 Charitable activities
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|---|---|---|---|---|---|
|Staff|costs|Support|Other|2021|2020|
|£|costs|costs|£|£|
|£|£|
|Training|48,486|8,474|55,461|112,421|97,457|
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Audit fees of £6,192 paid by the Presbyterian Church of Wales to the auditors for audit services.
Support costs
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|---|---|---|---|
|2021|2020|
|£|£|
|Office|costs|8,474|8,364|
|3|Staff|costs|
|2021|2020|
|£|£|
|Wages and salaries|44,050|42,878|
|Social security costs|4,436|4,485|
|48,486|47,363|
|The average number of employees during the period was:|3|2|
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No trustee received any remuneration for the services they provided as trustee in either year. No (2020: none) trustees had expenses paid or were reimbursed for expenses in the year. These costs were met by the Presbyterian Church ofWales and were for travel and subsistence and totalled £nil (2020: E£nil).
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Calvinistice LJ e Methodist@ or Presbyteriane Church of Wales Candidatese and Training2 @ Department
Notes to the financial statements for the year ended 31 December 2021
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|4|Investments|
|2021|2020|
|£|£|
|Quoted investments|
|Market value at 1|January|337,093|369,152|
|Net (losses)/|gains on investments|29,140|(32,059)|
|Market value at 31 December|366,233|337,093|
|Cost at 31 December|271,385|267,002|
|UK investments|
|Presbyterian Church ofWales Segregated Fund|366,233|337,003|
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Included in net gains/(losses) on investments are realised gains of £nil (2020: £nil) on disposal of investments.
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|The|following|represent|investments|valued|at|greater|than|5%|of the|total|market|value|of quoted|
|investments:|
|Presbyterian Church of|Wales Segregated Fund|21|0|210%|21|0|200%|
|2021|2020|
|£|£|
|Investment income|
|Presbyterian Church of|Wales Segregated Fund|11,549|9,507|
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|All investments are held under the control in the UK by the Presbyterian Church|of Wales, Tabernacle|
|Chapel, 81 Merthyr Road, Whitchurch, Cardiff, CF14 1DD and are managed by Investec,|London.|
|5|Debtors|
|2021|2020|
|£|£|
|Other debtors and prepayments|14,067|-|
|Amounts owed by the Presbyterian Church of|Wales|104,009|44,460|
|118,076|44,460|
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Calvinistice = e Methodiste or Presbyteriane Church of Wales Candidatese and Traininge e Department
Notes to the financial statements for the year ended 31 December 2021
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6 Creditors - amounts falling due within one year
2021 2020
£ £
Amounts owed to Presbyterian Church of Wales 34,469 23,651
Sundry creditors 14,192 11,584
48,661 35,235
7 Movement on funds
Balance Total Total Balance
1 January incoming resources 31 December
2021 resources expended 2021
£ £ £ £
Unrestricted 706,669 146,163 (112,421) 740,411
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8 Related Party Transactions
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The charity is the Candidates and Training Department of the Presbyterian Church of Wales, Tabernacle Chapel, 81 Merthyr Road, Whitchurch, Cardiff, CF14 1DD. The trustees have considered the disclosure requirements of the Statement of Recommended Practice for Charities and consider that the transactions requiring disclosure are as follows:
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(i) the Presbyterian Church of Wales has awarded a grant of £92,460 (2020: £84,983) to assist with salaries, course and running costs during the year;
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Gi) the Charity has a debtor balance of £104,009 (2020: £44,460) at the year-end in relation to investment income and grants allocated by the Presbyterian Church of Wales for 2021which were not transferred to the Charity until 2022;
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(iti) the Charity has a creditor balance of £34,469(2020: £23,651) at the year-end in relation to salaries paid through the Presbyterian Church of Wales payroll and not transferred by the Charity until 2022;
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(iv) The Charity has provided a grant of £19,250(2020:£17,500) to Coleg y Bala to support the Gap Year student programme and the Souled Out course; and
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(v) Twoof the trustees’ (2020: two) ofthe Charity have outstanding mortgages and car loans from the Presbyterian Church of Wales of £86,958(2020: £91,705) at year end. Total interest of £1,516 (2020: £1,645) was payableto the Church in relation to these balances during the year.
The maximum car loan available is £6,500 repayable over a maximum period of 5 years, at an interest rate of 3%. The car loans are unsecured loans. The maximum mortgage available is £175,000 repayable over a maximum period of 30 years, at an interest rate of 3%. There are certain exceptions to these terms within the mortgage rules set by the Church and each case will be considered on an individual basis. The mortgage is secured by a first charge against the property.
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