2023-03-31-accounts

Churches Conservation

Annual Report and Financial Statements For the year ended 31 March 2023

Churches Conservation

Company information

Company information	Company information
────────────────────────────────────────────────────
Charity Registration Number	1150968
Company Registration Number	08372099
Registered office	Unit 14 - C/O Vulcan Works
	34-38 Guildhall Road
	Northampton
	NN1 1EW
Bankers	CAF Bank Ltd
	25 Kings Hill,
	West Malling
	Kent
	ME19 4JQ
Investment managers	Investec
	2 Gresham Street
	London
	EC2V 7QP
Auditors	Mazars LLP
	6 Sutton Plaza
	Sutton Court Road
	Sutton
	Surrey
	SM1 4FS

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Churches Conservation

Contents

Contents	Contents
────────────────────────────────────────────────────────
Trustees’ Report for the year ended 31 March 2023	3 - 5
Independent auditor’s report to the members of
Churches Conservation	6 - 8
Statement of financial activities	9
Balance sheet	10
Statement of cash flow	11
Notes to the financial statements	12 - 17

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Churches Conservation

Trustees’ Report for the year ended 31 March 2023

The Trustees of Churches Conservation, who also act as Directors for the purposes of company law, present their report and audited financial statements for the year ended 31 March 2023 in accordance with the Charities Act 2011 and the Companies Act 2006. The Trustees are satisfied, to the best of their knowledge, that these statements comply with the current statutory requirements, the church’s governing documents, and are in accordance with the Charity Commission’s Statement of Recommended Practice (SORP 2005).

Structure, Governance and Management

Governing Document

The organisation was incorporated as a charitable company on 23 January 2013. It is limited by guarantee and governed by its Memorandum and Articles of Association.

Statement of Trustees’ Responsibilities

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Charity and which enable them to ensure that the financial statements comply with applicable law. 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.

Trustees

Trustees are appointed by the Board. The Trustees set out below held office for the whole of the year and up to the date of this report, unless otherwise stated.

Stephen Chater Chair William Donaldson (resigned 21 February 2023) Colin Shearer Alice Ullathorne Humphrey Welfare Inayat Omarji (appointed 22 February 2023)

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Churches Conservation

Trustees’ Report for the year ended 31 March 2023

Recruitment and Appointment of Trustees

New Trustees are recruited to meet the skill needs of the organisation. Trustees are recruited through advertising or personal recommendation.

Public Benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Group’s aims and objectives both in the year under review and in planning future activities. The Trustees give their time voluntarily and receive no private benefit. A trustee training plan has been implemented.

Risk Management

The major risks to which the Charity is exposed, as identified by the Trustees, are reviewed and scored for current probability and impact. Risks are formally reviewed each year.

Activities

The main activities of Churches Conservation are:

• The conservation of churches and chapels of historic and archaeological importance for the benefit of members of the communities in which they are located and for the benefit of the wider public.

• To benefit the residents of the communities in which such churches and chapels are located by adapting and improving premises so that they can be used for the provision of facilities for residents and for voluntary and other organisations for:

• (a) The advancement of education

• (b) The relief of people who are in need due to age, ill health, disability, social disadvantage.

• (c) The development of skills and capacity of residents of those communities to enable them to participate more fully in society.

Future plans

Churches Conservation intends to seek opportunities to widen its funding sources to enable further grants to be made to suitable conservation projects. Any significant risk identified are discussed by Trustees at Board meetings. No significant risks have been identified.

Financial review

Income of £1m (2021/22 £1.1M) and expenditure of £1.6M (2021/22 £1M) were made in the year. Churches Conservation moves into 2023/24 with a healthy balance sheet holding sufficient unrestricted reserves to maintain operations and restricted funds to support the projects for which restricted grant monies were given. Trustees consider the 2022/23 performance to be acceptable. 

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Churches Conservation

Trustees’ Report for the year ended 31 March 2023

Reserves policy

In the Trustees’ view, the reserves should provide the charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future.

The Trustees propose to maintain the charity’s reserves at a level which is at least equivalent to six months operational expenditure and have done so having regards to its manner of operation of likely funding streams.

The Trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the charity’s continuing obligations on a quarterly basis at their Trustee meeting.

The Trustees have reviewed the current level of unrestricted reserves of £ 12,412 and feel they are adequate to cover six months operation.

Auditors

So far as each of the Trustees is aware there is no relevant audit information of which the charitable company’s auditors are unaware; and The Trustees have taken all the steps they ought to have taken in order to make themselves aware of any relevant audit information and to establish that Churches Conservation’s auditors are aware of that information.

Mazars LLP will be proposed for re-appointment as auditors at the AGM.

The financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small entities.

Approved by the Trustees on 17[th] October 2023 and signed on their behalf

Stephen Chater Trustee

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Churches Conservation

Independent auditor’s report to the members of Churches Conservation

Opinion

We have audited the financial statements of Churches Conservation (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our auditor’s report thereon. 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.

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Churches Conservation

Independent auditor’s report to the members of Churches Conservation

Other information (continued)

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustee’s Report which includes the Directors ‘Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustee’s Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 Trustees’ 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:

• adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specific by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.

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Churches Conservation

Independent auditor’s report to the members of Churches Conservation

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 3, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 trustees 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 trustees 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 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 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 the financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: the Charities Act 2011, tax legislation, safeguarding, pensions legislation, employment regulation, health and safety regulation, anti-bribery, corruption and fraud and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;

• Inspecting correspondence, if any, with relevant licensing or regulatory authorities;

• Communicating identified laws and regulations to the engagement team and remaining

• alert to any indications of non-compliance throughout our audit; and

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• Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as The Charities Statement of Recommended Practice and the Companies Act 2006.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any

• actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to

fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing

• journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

(Senior Statutory Auditor) for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor 2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, SM1 4FS Date: 14 December 2023

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Churches Conservation

Statement of financial activities (including the Income and Expenditure Account) For the year ended 31 March 2023

Notes Income from Raised Funds Income from Charitable Activities 2 Other Income Total Income Expenditure 3 Expenditure on Charitable Activities Total Expenditure Net Income/ Expenditure Other recognised gains and losses Unrealised (losses) / gains on investments 5 Net movement in funds Balance B/fwd. at 1 April Balance C/fwd. at 31 March	Unrestricted £ Restricted £ Total 2023 £ Total 2022 £ - 1,028,457 1,028,457 1,067,558 17,077 - 17,077 1,201
	17,077 1,028,457 1,045,534 1,068,759 12,991 1,537,938 1,550,929 1,009,047
	12,991 1,537,938 1,550,929 1,009,047 4,086 (509,481) (505,395) 59,712 - (138,657) (138,657) 104,290
	4,086 (648,138) (644,052) 164,002 8,326 7,039,813 7,048,139 6,884,137 12,412 6,391,675 6,404,087 7,048,139

The notes on pages 13 to 18 form part of these accounts.

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.

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Churches Conservation

Balance Sheet as at 31 March 2023

Fixed Assets Notes Fixed asset investments 5 Current assets Debtors 6 Cash at bank and in hand Creditors: Amounts falling due within one year 7 Net current assets Net assets Funds Unrestricted Funds 9 Restricted Funds 8	2023 £ 1,986,144 1,028,457 4,711,832 5,740,289 1,322,346 4,417,943 6,404,087 12,412 6,391,675 6,404,087	2022 £ 2,124,801 1,067,558 4,862,890
		5,930,448 1,007,110
		4,923,338
		7,048,139
		8,326 7,039,813
		7,048,139

The financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small entities.

The notes on pages 13 to 18 form part of these accounts.

Approved and authorised for issue by the board on 17[th] October 2023

Signed on its behalf by

Stephen Chater Trustee

Churches Conservation

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Statement of cash flows for the year ended 31 March 2023

Cash flows from operating activities Net (expenditure) / income for the financial year Adjustments for: Loss on Investments Decrease in trade and other debtors Increase in trade and other creditors Net cash (used by) / generated from operations Cash flows from investing activities Purchase / Sales of fixed asset investments Net Cash generation for investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at start of year Cash and cash equivalents at the end of the year	2023 2022 £ £ (644,052) 164,002 138,657 (104,290) (39,101) (5,950) 315,235 354,683
	(151,058) 408,445
	157,559
	- 157,559
	(151,058) 566,004 4,862,890 4,296,886
	4,711,832 4,862,890

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

1. Accounting policies

1.1 Accounting convention

• The financial statements are prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at market value, and in accordance with the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’ (2019), Financial Reporting Standards 102 (the applicable standards in the United Kingdom and Republic of Ireland) and the Companies Act 2006. The charity is a public benefit entity.

The Trustees believe that it is appropriate for these financial statements to be prepared on the going concern basis given the level of reserves held.

1.2 Funds accounting

Unrestricted funds are those which are not subject to any special restrictions, and they can be used as the Trustees decide in furtherance of the general objectives of the charity. Restricted funds are those where the donor has imposed restrictions on how the fund may be used, but which do not prevent the fund being spent.

1.3 Income

All income is included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of donations and gifts and is included in the Statement of Financial Activities on a receipts basis. Tax recoverable on gift aid donations is recognised at the same time as the gift to which it relates.

Income from charitable activities is included when the activity occurs.

1.4 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates.

Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit.

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

1. Accounting policies (continued)

1.5 Going Concern

The Trustees have agreed budgets for the year ended 31 March 2024. Cash -flow projections are done 12 months from signing the accounts. Both sources of income and types of expenditure have been reviewed. As a result the Trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis.

The Charity’s business activities are set out on page 4. Trustees consider that Churches Conservation has sufficient reserves and is well place to manage it risks successfully. Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

No other material uncertainties that may cast significant doubt about the ability of Churches Conservation to continue as a going concern have been identified by the Trustees.

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

2. Income from charitable activities

			2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Grant from the
Churches Conservation	-	1,028,457	1,028,457	1,067,558
Trust
Total	-	1,028,457	1,028,457	1,067,558
3. Expenditure on charitable activities			2023	2022
	Unrestricted	Restricted	Total	Total
Charitable activities	£	£	£	£
Grants made	4,000	1,537,938	1,541,938	1,005,946
Support costs (Note 4)	8,991	-	8,991	3,101
Total	12,991	1,537,938	1,550,929	1,009,047
4. Support Costs			2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Audit Fees	6,900	-	6,900	3,000
Governance	2,000		2,000
Bank Fees	91	-	91	101
Total	8,991	-	8,991	3,101

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

5. Investments

5. Investments
		£
Balance at 1 April 2022		2,124,801
Additions / (Sales)		-
Change in market value		(138,657)
Balance at 31 March 2023		1,986,144
Historic cost at 31 March 2023		1,810,932
Equities		1,373,381
Fixed interest		326,681
Property		63,887
Alternative assets		159,352
Cash		62,843
Total		1,986,144
There is one holding in excess of 5% of the portfolio: Vanguard S&P 500 fund (10.31%)
6. Debtors
	2023	2022
	£	£
Amount due from related party	1,028,457	1,067,558
Total	1,028,457	1,067,558
All amounts fall due within one year.
7. Creditors	2023	2022
Amounts falling due within one year	£	£
Balance due to related party	1,309,431	999,946
Accruals	12,915	7,164
Total	1,322,346	1,007,110

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

8. Restricted Funds

Balance at 31 March 2022 £	Income and Gains £	Expenditure £	Balance at 31 March 2023 £
7,039,813	889,800	1,537,938	6,391,675

9. Analysis of Net Assets Between Funds

9. Analysis of Net Assets Between Funds
Fund balances at 1 April 2022 are represented by : Debtors Investments and Cash at bank Creditors Total net assets at 31 March 2023	Unrestricted Restricted Total £ £ £ - 1,028,457 1,028,457 25,327 6,672,649 6,697,976 (12,914) (1,309,431) (1,322,345)
	12,412 6,391,675 6,404,088

10. Related party transactions

Income from charitable activities includes a grant of £1M (2021/22: £1.1M) from the Churches Conservation Trust, which is restricted for furtherance of the Churches Conservation Trust’s charitable objects. In addition, restricted grants of £1.3M (2021/22: £1.0M) were made to the Churches Conservation Trust during the year. The balance due from Churches Conservation Trust at the year-end was £1.M (2021/22: £1.1M) and the balance due to Churches Conservation Trust was £1.3M (2021/22: £1.0M). Churches Conservation shares a minority of its Trustees with Churches Conservation Trust (Charity Number 258612).

No Trustee received any remuneration or reimbursement of expenses during the current year. The Trustees are considered to be the key management personnel of the charity.

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Churches Conservation

Notes to the financial statements for the year ended 31 March 2023

11. Comparative Statement of Financial Activities

Incoming Resources from Generated Funds Income from Charitable Activities Other Income Total Incoming Resources Resources Expended Expenditure on Charitable Activities Total Expenditure Net Income / (Expenditure) Unrealised Gains / (Losses) on investments Net movement in funds Balance B/fwd. at 1 April Balance C/fwd. at 31 March	Unrestricted £ Restricted £ 2022 £ - 1,067,558 1,067,558 1,201 - 1,201
	1,201 1,067,558 1,068,759 9,101 999,946 1,009,047
	9,101 999,946 1,009,047 (7,900) 67,612 59,712 - 104,290 104,290
	(7,900) 171,902 164,002 16,226 6,867,911 6,884,137 8,326 7,039,813 7,048,139

12. Post balance sheet events

None.

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