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2022-12-31-accounts

Charity Registration No. 1132154

Company Registration No. 134549 (England and Wales)

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Mr K. Anderson (from 15 October 2022)
Ms J.W. Barr
Mr W. Duncan
Dr H.J. Finlayson (until 31 December 2022)
Revd. D. Grosch-Miller (until 31 December 2022)
Ms C. Hogg
Mr P.B. Matthew (until 31 December 2022)
Revd A.D. McGougan (from 19 March 2022)
Mr C. Randle (from 15 October 2022)
Ms M.I. Shepherd (from 30 June 2022 until 12 April 2023)
Mr G.I. Wanless
Convenor Revd. D. Grosch-Miller
Treasurer Mr G.I. Wanless
Secretary Mr W. Duncan
Trust officer Mr A. Atkinson
Finance officer Ms H.E. Hogg
Charity number 1132154
Company number 134549
Registered office 4 College Lane, Newcastle upon Tyne, NE1 8JJ
Auditor Sumer Auditco Limited
The Beehive Beehive Ring Road, Gatwick, RH6 0PA
Bankers Bank of Scotland Plc
PO Box 1000, BX2 1LB
Lloyds Bank plc
PO Box 1000, BX1 1LT
Kingdom Bank
Media House, Padge Road, Beeston,
Nottingham, NG9 2RS
Virgin Money plc
132-134 Northumberland Street, Newcastle upon Tyne, NE1 7DG
Moneywise Credit Union
187-189 Shields Road, Newcastle upon Tyne, NE6 1DP
Legal advisors Sintons LLP
The Cube, Barrack Road, NE4 6DB

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Investment managers CCLA Investment Management Limited One Angel Lane, London, EC4R 3AB

Property consultants Sanderson Weatherall LLP (to 5 April 2022) Central Square South, Orchard Street, Newcastle upon Tyne, NE1 3AZ Howard Litchfield Partnership (from 5 April 2022) Liddon House, Belmont Business Park, Durham DH1 1TW Gritstone Project Management Ltd (from 1 January 2022) 17 Lily Crescent, Jesmond, Newcastle upon Tyne, NE2 2SP

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

CONTENTS

Page
Directors' report 1 - 7
Independent auditor's report 8 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 36

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Directors present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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)" (effective 1 January 2019).

Objectives and activities

The Company’s objectives are to advance the Christian religion for the benefit of the public in accordance with the doctrines, principles and usages and the Basis of Union of the United Reformed Church. In pursuit of this, the Company acts as trustee, holding monies, investments and properties for these purposes and for local churches.

The Company supports the Northern Synod’s vision, to enable local churches to be lively, informed and be effective in being the church in their local setting and Synod to be an expression of the Church at regional level, in the light of the five marks of mission (tell, teach, tend, transform and treasure). The Company provides financial, advisory and technical support to assist churches in the Synod.

Public benefit

The Company is aware of the Charity Commission’s guidance on public benefit. This requirement is met by enabling local churches to provide their services to the general public.

Activities

The Company carries out its work under 4 headings and illustrative examples of activity in 2019 are given below.

This is a cornerstone of Synod activity and the Trust assists this by funding courses, sponsoring events, and offering grants for specific developments and projects which strengthen individual or group faith experience. Growing Leader courses continue throughout the Synod and increases capacity for leadership development. Through the Ministries and Development Committee, the Trust have been able to offer support for lay people attending courses on baptism and communion and acquiring skills and knowledge of Zoom.

This is central to the Company’s purposes. Specific examples include, supporting church related community work, chaplaincies and local churches with projects and events. Grants are awarded for ministry in local ecumenical partnerships. Through the work of the Mission Enabler, the Trust can support the mission and outreach of local churches. Synod continues to explore new ways of being church.

The Company supports the Synod’s partnership with the Presbyterian Church of Mozambique. Collaboration with Northerly Synods continues and funding is available to assist with joint working on projects and events.

Property issues are considered by the Trust’s Manse and Property sub-committees. Both committees initiate a schedule of surveys to assess the condition of property and subsequent maintenance requirements. Financial support for building preservation is made available through grants.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Company continues to seek sustainable and responsible ways to fulfil Synod’s aspirations and making resources available to assist with developing new forms of ministry. It also recognises the potential benefits of employing people to support churches in their work.

The Trust has continued to participate in planning for the Synod’s future as and when asked to do so.

The key issue remaining to the Trust is tackling how to use resources to support churches, which might involve employing more lay people, whilst maintaining its charitable duty to achieve best value for its investments.

Grant-making

Much of the Company’s work is achieved through making grants (in 2022, some £357,277) , which are given to churches and other bodies as well as individuals, in accordance with published policies for the following purposes:

Staffing and Volunteers

The work of the Company is carried out by volunteers (mainly the Directors) who receive expenses, as well as by two members of paid staff, who are responsible to the Board and refer to Directors or Officers when major decisions are needed. The work of the other staff is directed by the Synod.

No honoraria are paid to Directors of the Board, except for the Treasurer who, in recognition of the additional work carried out by him, receives an annual honorarium of 10% of a minister’s stipend.

Volunteers donated an estimated 700 hours' work in total during the year, which is difficult to value in financial terms. The Board takes the view that the Company is not excessively dependent on any one individual.

Volunteers support the Trust directly through their roles as Directors, and others offer their time and help to subgroups and committees. The role of volunteers in furthering church activities is extensive and without it the churches’ effectiveness will be limited. The Synod has recognised that volunteers require support, and this is reflected in the Synod Way Forward.

Achievements and performance

Discipleship – (£104,557) Discipleship grants are awarded for specific developments and projects which strengthen individual or group faith experience. There was a significant Synod-wide event held at Beamish this year, which was well received by all who attended. During the year a number of courses were held to refresh, and train anew, lay leaders in Baptism, Presiding at Communion and acquiring skills of using Zoom.

Mission – (£241,505) Mission continued to be supported during 2022 and included grants to Great Bravington United Reformed Church towards various repairs, redecoration and the improvement of ventilation, Trinity LEP, Gosforth to pay for loft insulation at the manse, St George's, High Heaton, for Manse fence repairs and costs and Roker United Reformed Church, towards property improvements at the church. Emergency loans were available to be applied for by any Church who felt because of either COVID-19 or the steep increase in utility costs, they were in financial hardship. Small mission grants were awarded, helping churches to benefit local communities and support to the Staying Alive initiative in Newcastle.

Partnerships – (£762,566) Costs relating to ecumenical ministries were shared during 2022, and resources were also shared with poorer synods in the United Reformed Church through the Resource Sharing process. Support grants continue to be awarded to local churches where required. The Board is also apprised of and involved with collaborative arrangements between other synods in Northern Britain. These are intended to provide efficiency gains and put in place supportive and constructive working partnerships. The Safeguarding Advisor is continuing to work with Synod, Trust and local churches to review and strengthen systems across all parts of the Synod. Pulpit supply continues to be subsidised by the Trust for churches in Northumberland. Liaising with Solicitors regarding church investment funds is ongoing throughout the year.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Property – (£567,042) The Company continued to maintain the properties for which it is directly responsible and ensured professional advice on legal and property matters for local churches. Church surveys were carried out throughout the year and grants were awarded for church and manse repairs and improvements totaling £314,742 during 2022.

Goals achieved in 2022 include:

Goals still in progress and carried forward to 2023 include:

Financial review

During the year, total funds decreased by £1,708,820 (2021: an increase of £2,546,019) to £14,435,167. The decrease in funds is largely due to decreases in the valuation of our investments of £1,606,286 (see note 10).

Income

Investment income of £365,826 was pleasing to note (2021: £354,185). Included in other income (note 5) is £1,195,000 for church properties handed over to the Trust for sale, an decrease in 2022 of £744,785.

Expenditure

There were no exceptional items of expenditure during 2022 other than at the year end a provision of £400,000 was made in respect of a payment to the URC Ministers' Pension Fund. This has been included in note 21.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Reserves Policy

The Balance Sheet on page 13 shows the disposition of the various funds totaling £14,435k as at 31 December 2022 (2021: £16,144k). The term “reserves” describes that part of a charity’s funds that are freely available. Some of the funds are invested in property or restricted in use. The unrestricted fund net assets readily available are £10,973k (2021: £12,203k). The Director’s review the policy annually and have taken a risk-based approach to setting a reserves target.

The main financial risks that the Director’s feel need to be covered are:

Based on these risks, the Directors feel that they should aim to maintain reserves at a level between £7m to £8m.

The current level of reserves held is in excess of the target level, however with the uncertainty around the performance of investments due to the impact of the possible support for ministers’ welfare, energy improvements, world-wide market instability and rampant inflation, the Directors were satisfied that this was appropriate.

The Directors will review the policy annually.

Investment Policy

The majority of the available funds of the Company are invested through its nominees, primarily the CCLA (Churches, Charities and Local Authorities) Investment Management Ltd, one of the largest Charity Fund Managers in the UK. The financial policy of the company is to maximise the total return whilst maintaining a steady income by which the financial requirements of the company can be met. The portfolio is highly diversified with investment in both UK and oversea equities. CCLA operates an active ethical policy based not only on the types of activity engaged in by companies in which the fund invests, but also on active engagement over issues such as good governance and management, and good environmental policies.

It is not felt that this policy is having any detrimental effect on income or capital; the fund has returns that compare well with other investment vehicles, and performance is monitored at meetings of the investment subcommittee, which are held twice yearly. The current target is a total return of inflation plus 5% over the long term, in the COIF Charities Ethical Investment Fund. This would include the provision of a reliable income stream that maintained its real value over time. It aims to control volatility to 75% of that of the UK equity market.

Risk Management

The Directors are responsible for assessing the major risks to which the Company is exposed, and for establishing systems to mitigate those risks. The Trust maintains a risk register and considers external and internal risks to which the Company is exposed. The Trust undertakes a formal review of the risks to which it is exposed each year.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Factors Affecting Performance

The Company's ability to achieve its objectives depends on several factors, not necessarily within its control, such as performance of investments, and the effective coordinated work of professional advisors. In 2022 there were no significant factors of this type.

Other factors of which the Trust is cognisant of include the reduction in volunteers across the Synod and in churches which can cause them to close. This in turn may mean the Synod having to make up a shortfall on their in-year M&M contributions. Some remaining churches will have high maintenance costs. All these issues have been considered by the Trust and Synod when developing future plans.

Plans for the Future

The Company plans to continue its work for the foreseeable future.

The Company has agreed in principle to support the Synod and Trustees recognise their important role in assisting the implementation of the Synod’s future strategy.

The Board reflects a broad range of professional experience within private, statutory and voluntary organisations, and of course extensive involvement with ministry and churches all of which will be drawn upon to steer the Company through the changes in the Synod which lies ahead.

Goals for 2023 include:

Structure, governance and management

The United Reformed Church (Northern Province) Trust Limited (formerly known as the Durham and Northumberland Congregational Union (Incorporated)) was incorporated in England & Wales in 1914. It is a private charitable company, limited by guarantee. It is governed by its Memorandum & Articles of Association, adopted in revised form on 4 August 2009, which confer various powers, including powers to hold, maintain and administer property, money and investments; to buy and sell property and investments; and to take over any assets legally transferred to the Company.

Directors/Trustees

The Directors who served during the year were: Mr K. Anderson (from 15 October 2022) Ms J.W. Barr Mr W. Duncan Dr H.J. Finlayson (until 31 December 2022) Revd. D. Grosch-Miller (until 31 December 2022) Ms C. Hogg Mr P.B. Matthew (until 31 December 2022) Revd A.D. McGougan (from 19 March 2022) Mr C. Randle (from 15 October 2022) Ms M.I. Shepherd (from 30 June 2022 until 12 April 2023) Mr G.I. Wanless

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Most of the Directors give their time voluntarily and receive no benefits from the Company. Any expenses reclaimed from the Company are set out in note 11 to the financial statements. The exception is Mr G.I.Wanless who, as treasurer and in recognition of the additional work carried out by him, receives an annual honorarium of 10% of a minister’s stipend.

The Directors are appointed by the United Reformed Church Northern Synod, and the officers are appointed by the Board. A balanced Board is sought, with a mixture of experience, gender, and geographic spread. Where vacancies are identified, nominations are sought either by direct approach or advertisement amongst the 61 churches of the Synod. Under the United Reformed Church Acts 1972-2000, all members and Directors must also be members of a local church or ecumenical area of the United Reformed Church, and for this reason no candidates are sought outside the churches of the Northern Synod.

Upon appointment, all Directors are provided with an induction pack explaining the work of the Company and including the Charity Commission's leaflet The Essential Trustee: what you need to know. Further training is provided during the year on a range of relevant topics.

The Board meets five times a year and receives reports, sets policies and takes major financial decisions. Subcommittees deal with investments, staff remuneration, denominational Ministry & Mission Fund assessments, church and manse properties, and human resources. Small grant applications are considered by subcommittees, with larger ones referred to the Board. Investments are monitored regularly, with quarterly reports from the Investment Managers. Periodic condition survey reports are received from the Property Consultants on local church properties.

All decisions are taken by simple majority, with the Convenor having a casting vote. The Board may make decisions by agreement of two Directors, on straightforward, non-controversial matters. The day-to-day running of the Company's affairs is carried out by two members of office staff, who are responsible to the Board. The Finance Officer and Trust Officer support the day to day working of the Trust Company. Their tasks are operational in nature and they work within parameters defined by their role descriptions. The Trust Officer supports the Trust with administrative and legal support with policy decisions referred to the Board.

The Trust has a remuneration policy to provide effective stewardship of resources as well as being objective and transparent so that salary levels are perceived as being fair and rational. The salaries of lay staff employed by the Trust are assessed when a new post is created. This is carried out by members of the Human Resources sub-committee. In making a recommendation of an appropriate salary level account is taken of:

The proposed salary and its rationale are then discussed with the Remuneration sub-committee and the outcome recommended to the Trust. Salaries of lay staff are reviewed annually to reflect changes in the level of responsibility and increases in the cost of living which have occurred in the last 12 months. In exceptional circumstances a bonus payment may be recommended by the Remuneration sub-committee to reflect the performance of duties well in excess of what might normally be expected of the post-holder.

Relations with other Parties

The Company carries out its activities in concert with and in support of the United Reformed Church Northern Synod, an unregistered unincorporated charitable association.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of Directors' responsibilities

The directors, who also act as trustees for the charitable activities of The United Reformed Church (Northern Province) Trust Limited, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Directors to prepare accounts 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, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution proposing that Sumer Auditco Limited be reappointed as auditor of the company will be put at a Board Meeting.

Disclosure of information to auditor

Each of the Directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Directors' report was approved by the Board of Directors.

A.D. McGougan Director (Convenor)

Dated: 29 August 2023

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

Opinion

We have audited the financial statements of The United Reformed Church (Northern Province) Trust Limited (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the 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 UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in 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 Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to 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 of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE DIRECTORS OF THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Directors

As explained more fully in the statement of Directors' responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE DIRECTORS OF THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:

• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law and Charity Law.

• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.

These matters were discussed amongst the engagement team at the planning stage and the team remained alert

throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor) for and on behalf of Sumer Auditco Limited Statutory Auditor The Beehive Beehive Ring Road Gatwick RH6 0PA

Date: 11 September 2023

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial year
Unrestricted
funds
2022
Notes
£
Income and endowments from:
Donations and legacies
3
696
Investments
4
317,052
Other income
5
1,267,741
Total income
1,585,489
Expenditure on:
Charitable activities
6
1,667,458
Other expenditure
9
-
Total resources expended
1,667,458
Net gains/(losses) on investments
10
(1,338,371)
Net (outgoing)/incoming resources
before transfers
(1,420,340)
Gross transfers between funds
(28,549)
Net movement in funds
(1,448,889)
Fund balances at 1 January 2022
13,288,064
Fund balances at 31 December
2022
11,839,175		 Restricted Endowment
funds
funds
2022
2022
£
£
17,641
-
60,295
-
68
-
78,004
-
8,212
-
90,357
-
98,569
-
(267,915)
-
(288,480)
-
28,549
-
(259,931)
-
2,677,345
178,578
2,417,414
178,578		 Total
2022
£
18,337
377,347
1,267,809
1,663,493
1,675,670
90,357
1,766,027
(1,606,286)
(1,708,820)
-
(1,708,820)
16,143,987
14,435,167		 Total
2021
£
9,098
369,317
2,070,806
2,449,221
1,320,397
52,931
1,373,328
1,470,126
2,546,019
-
2,546,019
13,597,968
16,143,987

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year
Unrestricted
funds
2021
Notes
£
Income and endowments from:
Donations and legacies
3
3,896
Investments
4
308,742
Other income
5
2,050,556
Total income
2,363,194
Expenditure on:
Charitable activities
6
1,238,308
Other expenditure
9
-
Total resources expended
1,238,308
Net gains/(losses) on investments
10
1,191,366
Net (outgoing)/incoming resources before
transfers
2,316,252
Gross transfers between funds
(76,290)
Net movement in funds
2,239,962
Fund balances at 1 January 2021
11,048,102
Fund balances at 31 December 2021
13,288,064		 Restricted Endowment
funds
funds
2021
2021
£
£
5,202
-
60,575
-
20,250
-
86,027
-
82,089
-
52,931
-
135,020
-
278,760
-
229,767
-
76,290
-
306,057
-
2,371,288
178,578
2,677,345
178,578		 Total
2021
£
9,098
369,317
2,070,806
2,449,221
1,320,397
52,931
1,373,328
1,470,126
2,546,019
-
2,546,019
13,597,968
16,143,987

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
14
Investment properties
15
Investments
16
Current assets
Debtors falling due after one year
18
Debtors falling due within one year
18
Investments
19
Cash at bank and in hand
Creditors: amounts falling due within
one year
20
Net current assets
Total assets less current liabilities
Provisions for liabilities
21
Net assets
Capital funds
Endowment funds
Income funds
Restricted funds
23
Unrestricted funds
22		 2022
£
£
1,016,593
336,300
11,179,023
12,531,916
38,782
65,891
1,755,000
884,187
2,743,860
(46,252)
2,697,608
15,229,524
(794,357)
14,435,167
178,578
2,417,414
11,839,175
14,435,167		 2021
£
£
1,235,471
155,000
12,721,601
14,112,072
24,000
150,496
1,659,250
956,151
2,789,897
(41,419)
2,748,478
16,860,550
(716,563)
16,143,987
178,578
2,677,345
13,288,064
16,143,987

The financial statements were approved by the Directors on 29 August 2023

G.I. Wanless Trustee

A.D. McGougan Trustee

Company Registration No. 134549

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash absorbed by operations
29
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds from disposal of investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
£
(1,522,722)
(2,059)
-
1,075,470
377,347
1,450,758
-
(71,964)
956,151
884,187		 2021
£
£
(941,205)
(4,243)
(400,000)
1,299,638
369,317
1,264,712
-
323,507
632,644
956,151

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

The United Reformed Church (Northern Province) Trust Limited is a private company limited by guarantee incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The registered office is 4 College Lane, Newcastle upon Tyne, NE1 8JJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

The financial statements have been prepared on the going concern basis. The Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future.

1.3 Charitable funds

Transfers to and from the General reserve fund to designated funds are made in accordance with the annual budget and in accordance with need. Funds are closed when the purpose for which they were created comes to an end, or it is otherwise resolved to discontinue them.

Details of the nature and purpose of each fund are explained in note 24. Designated funds are determined by the Board.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income arising on endowed funds is treated as an addition to the endowment.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is accounted for on an accruals basis. Grants payable are voluntary payments to individuals, local URC churches or other organisations in accordance with the purpose of the relevant fund. They are accounted for when they have been approved.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include staff and governance costs which support the charity and its activities. These costs have been allocated to expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 8.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Freehold properties have been brought into the financial statements at the value at which they had previously been included in the accounts of the Northern Synod in 2009. Properties brought in after this date are valued at market value on donation or purchase.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% straight line Fixtures and fittings 25% straight line Loans No depreciation Property improvements 10 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions and experience of recoverability.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

(Continued)

Key sources of estimation uncertainty

Determining residual values and useful economic lives of tangible fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by trustees when determining the residual values for tangible fixed assets. When determining the residual value trustees aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Valuation of investment property

As described in note 16 to the financial statements, the investment property is stated at fair value based on the valuation performed by an independent professional valuer, Sanderson Weatherall, Chartered Surveyors with recent experience in the location and category of property valued. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the property

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
696
17,641
Legacies receivable
-
-
Grants receivable
-
-
696
17,641
Donations and gifts
Contributions from local
churches
696
293
M&M contributions
-
17,348
696
17,641		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
18,337
3,841
5,142
-
55
-
-
-
60
18,337
3,896
5,202
989
3,841
-
17,348
-
5,142
18,337
3,841
5,142		 Total
2021
£
8,983
55
60
9,098
3,841
5,142
8,983

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4 Investments

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Rental income
10,875
-
Income from listed
investments
305,531
60,295
Interest receivable
646
-
317,052
60,295		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
10,875
15,000
-
365,826
293,633
60,552
646
109
23
377,347
308,742
60,575		 Total
2021
£
15,000
354,185
132
369,317

Rental income from investment properties is accounted for under income from investments.

5 Other income

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Properties held for resale
1,195,000
-
Other income
60,494
68
Rental income
12,247
-
Northerly Synods
Contribution to Clerk
Salary
-
-
Monies received from
investors
-
-
1,267,741
68		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
1,195,000
1,939,785
-
60,562
68,754
-
12,247
16,657
-
-
25,360
-
-
-
20,250
1,267,809
2,050,556
20,250		 Total
2021
£
1,939,785
68,754
16,657
25,360
20,250
2,070,806

Church properties handed over to the Trust for resale during 2022 are shown under properties held for resale. Properties that remain unsold have been included as current assets in assets held for sale, valued at expected sale value.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

6 Charitable activities

Discipleship
Mission Partnership
Property
2022
2022
2022
2022
£
£
£
£
Staff costs
-
36,930
-
-
Direct activities
5,120
65,758
622,261
174,270
5,120
102,688
622,261
174,270
Grant funding of activities
(see note 7)
6,326
43,327
(7,118)
314,742
Share of support costs (see
note 8)
91,676
94,055
145,583
76,393
Share of governance costs
(see note 8)
1,435
1,435
1,840
1,637
104,557
241,505
762,566
567,042
Analysis by fund
Unrestricted funds
104,557
241,505
767,742
553,654
Restricted funds
-
-
(5,176)
13,388
104,557
241,505
762,566
567,042
For the year ended 31 December 2021
Discipleship
Mission Partnership
£
£
£
Staff costs
-
10,684
-
Direct activities
2,994
14,367
466,410
2,994
25,051
466,410
Grant funding of activities (see note 7)
3,239
60,406
41,143
Share of support costs (see note 8)
125,929
56,332
100,103
Share of governance costs (see note 8)
1,559
1,559
1,559
133,721
143,348
609,215
Analysis by fund
Unrestricted funds
133,602
143,348
555,773
Restricted funds
119
-
53,442
133,721
143,348
609,215		 Total
2022
£
36,930
867,409
904,339
357,277
407,707
6,347
1,675,670
1,667,458
8,212
1,675,670
Property
£
-
135,107
135,107
213,858
83,589
1,559
434,113
405,585
28,528
434,113		 Total
2021
£
10,684
618,878
629,562
318,646
365,953
6,236
1,320,397
1,238,308
82,089
1,320,397
Total
2021
£
10,684
618,878
629,562
318,646
365,953
6,236
1,320,397
1,238,308
82,089
1,320,397

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7
Grants payable
Discipleship
2022
£
Grants to institutions:
Roker URC
-
Northgate URC Darlington
-
Great Bavington URC
-
Robert Stewart Memorial Church
-
Flodden Eco Museum
-
St Aidan's URC, Hexham
-
St George's URC, Heaton
-
Stockton Road URC
-
Elsdon Avenue Church
-
Sunderland Connect Network
-
St George's URC, Hartlepool
-
St Andrew's URC, Kenton
-
Denewell Avenue URC
-
St George's URC, Morpeth
-
Heaton Churches Together
-
Trinity Church, Gosforth
-
Trinity Church, Ashington
-
Rothbury URC
-
St Andrew's Church, Crook
-
Less grants no longer required
-
Minor institutional grants
-
-
Grants to individuals
6,326
6,326		 Mission Partnership
Property
2022
2022
2022
£
£
£
9,000
-
134,860
-
-
127,380
-
-
21,998
-
-
14,403
-
-
10,000
-
-
10,000
-
3,400
2,800
8,467
-
-
7,305
-
-
7,000
-
-
-
-
5,512
-
-
3,015
2,673
-
-
2,500
-
-
2,000
-
-
-
-
1,970
1,812
-
-
-
-
1,326
-
1,000
-
(7,062)
(22,360)
(18,522)
9,632
10,770
-
43,327
(7,190)
314,742
-
72
-
43,327
(7,118)
314,742		 2022
£
143,860
127,380
21,998
14,403
10,000
10,000
6,200
8,467
7,305
7,000
5,512
3,015
2,673
2,500
2,000
1,970
1,812
1,326
1,000
(47,944)
20,402
350,879
6,398
357,277

A full list of the individuals and institutions to which the grants have been committed is available on request from the Synod office.

Discipleship

Discipleship grants are awarded for specific developments and projects which strengthen individual or group faith experience.

Mission

Mission grants are awarded to fund events and projects central to the company's purpose including promoting evangelism and church growth.

Partnership

Partnership grants are awarded to support joint working with ecumenical, community and global partners.

Property

Property grants are awarded to support local churches in funding proper care of their properties.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7
Grants payable
For the year ended 31 December 2021
Discipleship
2021
£
Grants to institutions:
St Cuthbert's Centre, Holy Island
-
Northgate URC Darlington
-
St Columba's URC, North Shields
-
St Columba's URC, Billingham
-
NECAT
-
Bethel URC, Chester-le-Street
-
Northumbrian Industrial Mission
-
St James's URC, Newcastle
-
Keld Resource Centre
-
Bellingham URC
-
Trinity Church, Gosforth
-
Wooler URC
-
Roker URC
-
Falstone & Kielder Church
-
St Andrew's URC, Kenton
-
St James's URC, Alnwick
-
Rothbury URC
-
Newcastle Central & East Methodist Circuit
-
Great Bavington URC
-
Trinity Church, Ashington
-
Jesmond URC
-
St George's URC, Hartlepool
-
Wark LEP
-
St Andrew's Dawson Street, Crook LEP
-
Less grants no longer required
-
Minor institutional grants
2,286
2,286
Grants to individuals
953
3,239		 (Continued)
Mission Partnership
Property
2021
2021
2021
2021
£
£
£
£
-
-
62,500
62,500
-
-
53,057
53,057
-
-
29,763
29,763
-
-
23,814
23,814
16,464
-
-
16,464
4,789
-
7,510
12,299
10,500
-
-
10,500
-
-
10,000
10,000
-
-
10,000
10,000
-
5,300
-
5,300
5,000
-
-
5,000
5,000
-
-
5,000
-
-
4,827
4,827
-
4,800
-
4,800
4,571
-
-
4,571
4,453
-
-
4,453
4,401
-
-
4,401
-
-
3,730
3,730
-
-
2,985
2,985
-
-
1,960
1,960
-
-
1,887
1,887
-
-
1,825
1,825
-
1,080
-
1,080
-
1,000
-
1,000
(54)
-
-
(54)
5,282
25,403
-
32,971
60,406
37,583
213,858
314,133
-
3,560
-
4,513
60,406
41,143
213,858
318,646

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8
Support costs
Staff costs
Depreciation
Office & executive
Office staff costs
Field Team costs
Audit fees
Sundry expenses
Analysed between
Charitable activities
Basis of allocation
Discipleship
Mission
Partnership
Property		 Support
costs
Governance
costs
£
£
318,235
-
24,217
-
54,013
-
6,701
-
4,541
-
-
6,000
-
347
407,707
6,347
407,707
6,347		 2022
Support
costs
Governance
costs
2021
£
£
£
£
318,235
285,518
-
285,518
24,217
23,043
-
23,043
54,013
50,441
-
50,441
6,701
4,897
-
4,897
4,541
2,054
-
2,054
6,000
-
6,000
6,000
347
-
236
236
414,054
365,953
6,236
372,189
414,054
365,953
6,236
372,189
Office &
executive
Office
staff
Field Team
%
%
%
25
19
27
25
19
29
25
35
44
25
27
-
100
100
100		 2021
£
285,518
23,043
50,441
4,897
2,054
6,000
236
372,189
372,189
100

Support and governance costs are allocated as an approximation of average working time for staff costs, and equally between all categories for the running costs of the Synod Office and the Synod Executive Committee.

Governance costs includes payments to the auditors of £5,000 (2021: £5,000) for audit fees and £1,000 (2021: £1,000) for non audit services.

9 Other expenditure

Restricted Restricted
funds funds
2022 2021
Monies paid to investors 90,357 52,931
90,357 52,931

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10 Net gains/(losses) on investments

Unrestricted
Restricted
Total Unrestricted Restricted
funds
funds
funds
funds
2022
2022
2022
2021
2021
£
£
£
£
£
Gain/(loss) on revaluation of
investments
(1,314,591)
(267,915)
(1,582,506)
1,226,366
278,760
Gain/(loss) on sale of
investments
(23,780)
-
(23,780)
(35,000)
-
(1,338,371)
(267,915)
(1,606,286)
1,191,366
278,760		 Total
2021
£
1,505,126
(35,000)
1,470,126

11 Directors

None of the Directors (or any persons connected with them) received remuneration during the year (2021: none), but 6 of them were reimbursed a total of £659 travelling and other expenses (2021: 4 were reimbursed £131). Retiring trustees received a non-monetary gift totalling £220.

The treasurer received an annual honorarium of £2,842 (2021: £2,760) being 10% of a minister's stipend in recognition of the additional work carried out by him.

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13 Employees

The average monthly number of employees during the year was:

Head count
Full-time equivalent
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
13
8
2022
£
258,320
22,490
74,355
355,165		 2021
Number
15
8
2021
£
215,404
17,899
62,899
296,202

Key management are considered to be the Directors of the Trust, none of whom received any remuneration this year or in the previous year.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

13 Employees

(Continued)

There were no employees whose annual remuneration was more than £60,000.

14 Tangible fixed assets

Cost
At 1 January 2022
Additions
Transfer to investment property
At 31 December 2022
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
Transfer to investment property
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 Freehold
land and
buildings
Fixtures and
fittings
£
£
947,450
34,113
-
2,059
(185,000)
-
762,450
36,172
108,868
28,035
15,420
3,614
(3,700)
-
120,588
31,649
641,862
4,523
838,582
6,078		 Loans
Property
improvements
£
£
225,983
206,034
-
-
-
-
225,983
206,034
-
41,206
-
20,603
-
-
-
61,809
225,983
144,225
225,983
164,828		 Total
£
1,413,580
2,059
(185,000)
1,230,639
178,109
39,637
(3,700)
214,046
1,016,593
1,235,471

Freehold properties comprised in the total above are functional assets and managed by the Trust. Loans relate to properties for the purpose of providing houses for some ministers, retired ministers and their spouses. These properties are managed by the United Reformed Church Retired Ministers' Housing Society Limited.

15 Investment property

Fair value
At 1 January 2022
Transfers from freehold land and buildings
At 31 December 2022		 2022
£
155,000
181,300
336,300

Blyth URC, was obtained in 2009 and included at a valuation of £210,000 derived from the market value as calculated by an independent valuer. An updated valuation was obtained during 2018 and property is now valued at £155,000.

Also included in the fair value is Berwick Church which is currently being leased by the Spittal Improvement Trust and is valued at £181,300.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

16
Fixed asset investments
Common
investment
fund
Traidcraft
Investment
Cost or valuation
At 1 January 2022
12,720,095
1,506
Additions
39,928
-
Valuation changes
(1,582,506)
-
At 31 December 2022
11,177,517
1,506
Carrying amount
At 31 December 2022
11,177,517
1,506
At 31 December 2021
12,720,095
1,506
17
Financial instruments
2022
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,755,000
18
Debtors
2022
Amounts falling due within one year:
£
Other debtors
44,541
Prepayments and accrued income
21,350
65,891
2022
Amounts falling due after more than one year:
£
Other debtors
38,782
Total debtors
104,673
19
Current asset investments
2022
£
Assets held for sale
1,755,000		 Total
£
12,721,601
39,928
(1,582,506)
11,179,023
11,179,023
12,721,601
2021
£
1,659,250
2021
£
116,857
33,639
150,496
2021
£
24,000
174,496
2021
£
1,659,250

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Creditors: amounts falling due within one year
2022 2021
£ £
Other creditors 5,545 610
Accruals and deferred income 40,707 40,809
46,252 41,419
21 Provisions for liabilities 2022 2021
£ £
Grant provisions 394,357 316,563
Pension provisions 400,000 400,000
794,357 716,563
Movements on provisions:
Grant Pension Total
provisions provisions
£ £ £
At 1 January 2022 316,563 400,000 716,563
Additional provisions in the year 393,338 400,000 793,338
Reversal of provision (47,946) - (47,946)
Utilisation of provision (267,598) (400,000) (667,598)
At 31 December 2022 394,357 400,000 794,357

Included in the above grants are amounts which are expected to be paid after more than one year totalling £56,000 (2021: £83,874).

Grants are normally awarded with a maximum contribution towards costs and a time frame to be claimed. If the grant is underspent or not claimed within the allotted time frame, the unclaimed grant provision is reversed.

A full list of the individuals and institutions to which the grants have been committed is available on request from the Synod office.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

22
Unrestricted funds
Balance at
1 January 2022
£
General fund
1,100,112
General reserve
2,439,780
Property valuations
1,072,179
Manse fund
5,515,656
Property fund
1,434,817
Mission fund
598,507
Dr Brand Legacy
14,684
C&Y Strategy
868,351
Ministers' Pension
243,978
Retired Ministers' Housing
-
13,288,064
For the year ended 31 December 2021
General fund
915,103
General reserve
2,467,258
Property valuations
906,299
Manse fund
4,226,319
Property fund
1,258,443
Mission fund
1,262,935
Dr Brand Legacy
11,745
C&Y Strategy
-
Ministers' Pension
-
11,048,102		 Incoming
resources
£
318,077
58,444
-
603,392
604,880
-
696
-
-
-
1,585,489
333,231
70,680
185,000
1,049,927
723,515
-
841
-
-
2,363,194		 Resources
expended
£
(474,698)
(581,463)
(15,420)
(19,992)
(429,779)
(88,085)
-
(58,021)
-
-
(1,667,458)
(424,161)
(421,603)
(19,120)
(21,861)
(268,369)
(76,992)
-
(6,202)
-
(1,238,308)		 Transfers Revaluations,
gains and
losses
Balance at
31 December
2022
£
£
£
20,531
(95,884)
868,138
368,085
(275,976)
2,008,870
-
-
1,056,759
(400,980)
(600,223)
5,097,853
(53,391)
(191,144)
1,365,383
207,531
(173,531)
544,422
-
(1,613)
13,767
(13,797)
-
796,533
(200,613)
-
43,365
44,085
-
44,085
(28,549)
(1,338,371) 11,839,175
179,011
96,928
1,100,112
16,888
306,557
2,439,780
-
-
1,072,179
(255,936)
539,707
5,515,656
(368,719)
67,447
1,434,817
(766,065)
178,629
598,507
-
2,098
14,684
874,553
-
868,351
243,978
-
243,978
(76,290)
1,191,366
13,288,064		 Transfers Revaluations,
gains and
losses
Balance at
31 December
2022
£
£
£
20,531
(95,884)
868,138
368,085
(275,976)
2,008,870
-
-
1,056,759
(400,980)
(600,223)
5,097,853
(53,391)
(191,144)
1,365,383
207,531
(173,531)
544,422
-
(1,613)
13,767
(13,797)
-
796,533
(200,613)
-
43,365
44,085
-
44,085
(28,549)
(1,338,371) 11,839,175
179,011
96,928
1,100,112
16,888
306,557
2,439,780
-
-
1,072,179
(255,936)
539,707
5,515,656
(368,719)
67,447
1,434,817
(766,065)
178,629
598,507
-
2,098
14,684
874,553
-
868,351
243,978
-
243,978
(76,290)
1,191,366
13,288,064
11,839,175
1,100,112
2,439,780
1,072,179
5,515,656
1,434,817
598,507
14,684
868,351
243,978
13,288,064

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

23 Restricted funds

Movement in funds
Balance at Incoming Resources Transfers Revaluations, Balance at
1 January resources expended gains and 31 December
2022 losses 2022
£ £ £ £ £ £
Dales fund 49,714 - - - (5,327) 44,387
Ministry & mission fund 106,811 17,348 16,616 - (14,778) 125,997
Moderator's benevolent
fund 471 - (72) 1,000 - 1,399
Mozambique
partnership fund 19,313 858 - - (2,072) 18,099
Mozambique project
fund 997 25 - - (107) 915
Northumberland project
fund 4,344 - - (3,911) (433) -
Students' fund 10,244 - - - (1,098) 9,146
Pulpit supply fund - - (2,313) 2,500 - 187
Trust capital funds 1,600,092 31,028 (21,845) (355,538) (127,820) 1,125,917
Church funds 854,199 28,745 (90,357) 384,498 (116,280) 1,060,805
Northerly Synods
Listening and
Reconciliation Fund 29,102 - - - - 29,102
Safeguarding fund 650 - - - - 650
Charity Collections fund 1,408 - (598) - - 810
2,677,345 78,004 (98,569) 28,549 (267,915) 2,417,414

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

23 Restricted funds (Continued)
For the year ended 31 December 2021
Movement in funds
Balance at Incoming Resources **Transfers ** Revaluations, Balance at
1 January resources expended gains and 1 January
2021 losses 2022
£ £ £ £ £ £
Dales fund 44,362 - - - 5,352 49,714
Ministry & mission fund 106,868 5,142 (20,521) 1,267 14,055 106,811
Moderator's benevolent
fund 4,031 - (3,560) - - 471
Mozambique
partnership fund 16,733 540 - - 2,040 19,313
Mozambique project
fund 867 25 - - 105 997
Northumberland project
fund 3,876 - - - 468 4,344
Students' fund 9,254 - (119) - 1,109 10,244
Pulpit supply fund - - (290) 290 - -
Trust capital funds 1,375,321 38,526 (52,571) 74,733 164,083 1,600,092
Church funds 776,094 41,794 (55,237) - 91,548 854,199
Northerly Synods
Listening and
Reconciliation Fund 31,882 - (2,780) - - 29,102
Safeguarding fund 2,000 - (1,350) - - 650
Charity Collections fund - - - - - 1,408
Northerly Synods
general fund - - 1,408 - - -
2,371,288 86,027 (135,020) 76,290 278,760 2,677,345

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

24 Nature and purpose of funds

General fund

This fund is unrestricted, and was set up by Trust resolution in 2009, and designated for the day-to-day running of the Northern Synod. It was originally formed by combining various designated funds and is funded from investment income and property sales. This asset is represented by pooled investments and cash and office furniture and fittings.

General reserve fund

This fund is unrestricted, and consists of all the undesignated monies of the Synod. This asset is represented by pooled investments and cash.

Property valuations fund

This fund is unrestricted, and was set up in 2009. This asset is represented solely by property.

Manse fund

This fund is unrestricted, and was set up in 2006, and is funded from the sale of manses and retired ministers' houses. This asset is represented by pooled investments and cash. The Manse Fund is designated for making grants to churches and expenses incurred by the Trust in respect of manses.

Property fund

This fund is unrestricted, and was set up by Trust resolution in 2009 and is designated for making grants to churches and expenses incurred by the Trust in respect of property matters. It is funded from the sale of churches and halls and is represented by pooled investments and cash.

Mission fund

This fund is unrestricted, and was set up by Trust resolution in 2009. This fund is designated for the provision of grants for small church/community projects and longer term projects which will require more substantial funding. The fund is a combination of the Development Fund and a legacy received, and is now funded from the sales of properties. This asset is represented by pooled investments and cash.

Dr Brand legacy fund

This fund is unrestricted and arises from legacy income and is represented by pooled investments and cash. Dr James Brand left a legacy to the Presbytery of Newcastle in the 1960s. The Trust/Synod inherited it among the assets of the Districts of Newcastle and Durham & Teesside in 2008.

C&Y Strategy Fund

This fund is designated and is available for a children and youth work strategy agreed in 2021. This fund is designated from the Mission fund therefore will not receive any investment income.

Ministers' pension fund

This fund is unrestricted and is designated for contributing to the deficit on the URC ministers' pension fund. It arises from the sale of churches and is represented by pooled investments and cash.

Dales fund

The Dales Fund is restricted and is used to support rural ministry and properties in Swaledale. It is represented by pooled investments and cash.

Ministry and mission fund

This fund is restricted, and was set up in 1992, for the sole purpose of meeting ministry and mission commitments as necessary. It arises from accumulated surpluses and transfers from the Lancashire Congregational Union and North Tyne fund. Contributions from and to ecumenical partners are posted through this fund. This asset is represented by pooled investments and cash.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

24 Nature and purpose of funds

(Continued)

Moderator's benevolent fund

This fund is restricted, and was set up in 1996 for the sole purpose of making discretionary grants to individuals. It arises from donations received by the Moderator and by transfers from reserves. This asset is represented by one designated bank account and cash.

Mozambique partnership fund

This fund is restricted and was created in 2010 to sustain the partnership between Northern Synod and the Igreja Presbiteriana de Moçambique. The fund is supported by general donations from individuals and the General Reserve Fund. The asset is represented by pooled investments and cash.

Mozambique project fund

This fund was established in 2010 and is restricted. The fund was set up to collect donations from individuals, to support specific projects relating to the Partnership in Mozambique. The asset is represented by pooled investments and cash.

Northumberland project fund

This fund is restricted and was set up for the sole purpose of making grants for suitable projects in North Northumberland. This donation was received from Chatton United Reformed Church on closure of the church during 2016. The fund is to be held for a period of 5 years. The asset is represented by pooled investments and cash.

Students' fund

The Students' Fund was transferred from Newcastle Presbytery and is restricted to provide book grants to ministerial students. The asset is represented by pooled investments and cash.

Pulpit supply fund

This fund is restricted and was set up in 2011 to collect contributions from local churches and pay preaching fees and expenses in Northumberland. This asset is represented by pooled investments and cash.

Trust capital funds

These funds are restricted and arose from the sale of properties, and have been designated by Synod resolution for specific churches. These assets are represented by pooled investments and cash.

Church funds

These funds are restricted and are held on behalf of local churches. These assets are represented by pooled investments and cash.

Northerly Synods Listening and Reconciliation Fund

This fund is restricted and was set up in 2017. This fund will manage the grant received for this project in the five Northerly Synods and is represented by cash.

Safeguarding Fund

This fund is restricted and was set up to hold a grant of £2,000 received from URC London.

Northerly Synods General Fund

This fund is restricted and was set up to hold funds from the five Northerly Synods. This fund is managed by Northern Synod.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

25 Analysis of net assets between funds Current financial year

Unrestricted
2022
£
Fund balances at 31 December 2022 are
represented by:
Tangible assets
866,593
Investment properties
336,300
Investments
8,775,807
Current assets/(liabilities)
2,654,832
Provisions
(794,357)
11,839,175
Prior financial year
Unrestricted
2021
£
Fund balances at 31 December 2021 are
represented by:
-
Tangible assets
1,085,471
Investment properties
155,000
Investments
10,030,978
Current assets/(liabilities)
2,710,818
Long term liabilities
22,360
Provisions
(716,563)
13,288,064		 Restricted
2022
£
-
-
2,403,216
14,198
-
2,417,414
Restricted
2021
£
-
-
-
2,690,623
9,082
(22,360)
-
2,677,345		 Endowed
2022
£
150,000
-
-
28,578
-
178,578
Endowed
2021
£
-
150,000
-
-
28,578
-
-
178,578		 Total
2022
£
1,016,593
336,300
11,179,023
2,697,608
(794,357)
14,435,167
Total
2021
£
-
1,235,471
155,000
12,721,601
2,748,478
-
(716,563)
16,143,987

26 Contingent liabilities

An actuarial review of the Ministers’ Pension Fund has been completed and the Synod has committed £1.2m for the period 2022 to 2024, with another £1.8m in principle for 2025 through to 2030 to the deficit recovery plan. A total commitment of £3m. This commitment has been made in conjunction with all other Synods throughout the country. Due to the structure of the national church and ministerial appointments there is no legal obligation for the Trust to do this, but all Synods were approached and there is wide acceptance that there is a moral obligation at the Synod level and that such support does fall within the charitable purposes of the Trust.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

27 Operating lease commitments

Lessor

The company owns an investment property for rental purposes. Rental income earned during the year was £10,875. The property has a committed tenant until 2042.

At the reporting end date the charity had contracted with tenants for the following minimum lease payments:

Within one year
Between two and five years		 2022
£
13,500
256,500
270,000		 2021
£
15,000
30,000
45,000

28 Related party transactions

There were no disclosable related party transactions during the year (2021: none).

29 Cash generated from operations

Cash generated from operations 2022 2021
£ £
(Deficit)/surplus for the year (1,708,820) 2,546,019
Adjustments for:
Investment income recognised in statement of financial activities (377,347) (369,317)
Loss on disposal of investments 23,780 35,000
Gift of property (1,195,000) (1,939,785)
Investment fee rebate reinvested (39,929) (16,762)
Fair value gains and losses on investments 1,582,506 (1,505,126)
Depreciation and impairment of tangible fixed assets 39,637 42,162
Movements in working capital:
Decrease/(increase) in debtors 69,823 (82,764)
Increase in creditors 4,834 10,468
Increase in provisions 77,794 338,900
Cash absorbed by operations (1,522,722) (941,205)

30 Properties vested in the company as custodian trustee

A comprehensive list of properties vested in the company is available on request to the URC Northern Synod Office.

31 Analysis of changes in net funds

The charity had no debt during the year.

THE UNITED REFORMED CHURCH (NORTHERN PROVINCE) TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

32 Retirement benefit schemes

Final salary (defined benefit) pension scheme

The Trust contributes to a lay staff pension scheme known as the 'Final Salary' scheme, which is administered by TPT Retirement Solutions (formerly The Pensions Trust). This is operated as a defined benefit scheme but the Trust is not the only participating employer in the scheme and is unable to identify its share of the underlying assets and liabilities - each employer in that each employer in that scheme pays a common contribution rate.

The Trust contributed 22.8% (2021: 22.8%) of basic salary in respect of members of the Final Salary scheme, amounting to £74,331 (2021: £62,899).

Triennial actuarial valuations of the Final Salary scheme are performed by a professionally qualified independent actuary. The most recent formal actuarial review of the scheme was at 30 September 2020 when the scheme had a surplus of £2,689,000. The assumptions underlying that valuation include:

Discount Rate: 1.4% pa Pensionable earnings growth: 2.5% for three years, 2.75% thereafter Price Inflation and pension increase: 2.55% Retirement age (active members): 65, with maximum commutation

Contributions by members is currently 7.5% of pensionable salary and a salary sacrifice arrangement was made available for members in the scheme.

The scheme was closed to future accrual on 28th February 2023. A new defined contribution scheme has been set up and staff will be moved to this scheme.