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2021-03-31-accounts

St Clement Danes Church Fund

Annual Report and Financial Statements for the year ended 31 March 2021

Registered Charity Number: 1168717

ST. CLEMENTS DANES CHURCH FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Air Vice-Marshal Al Gillespie - Chairman Mrs D Patman Mrs C Opie The Venerable (Air Vice Marshal) J Ellis Rev (Wg Cdr) Ashley Mitchell Rev (Wg Cdr) David Northfield Group Captain A Bettridge Dr S Griffiths Principal Officers Flight Lieutenant Cameron Vear - Secretary Flight Lieutenant Martin Bull - Treasurer

(Appointed 8 December 2020) (Appointed 8 December 2020) (Resigned 10 June 2020) (Resigned 5 November 2020)

Charity number 1168717 Registered office St. Clement Danes Church The Strand WC2R 1DH Bankers Holts Military Banking The Royal Bank of Scotland plc Lawrie House Victoria Road Farnborough GU14 7NR

Investment Managers Investec Wealth & Management 2 Gresham Street London EC2V 7QP

ST. CLEMENTS DANES CHURCH FUND

CONTENTS

Page
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Independent examiner's report 8
Statement of financial activities 9 - 10
Balance sheet 11
Notes to the financial statements 12 - 22

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 2021.

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 Fund's charitable scheme, applicable law and the requirements of the Declaration of Trust dated 12 July 1956, the 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 issued in July 2014.

History

St Clement Danes Church was destroyed by fire in May 1941 and rebuilt, largely by public subscription, in 1958. The church was re-consecrated on 19 October 1958 as the Central Church of the Royal Air Force.

The Diocese of London delegated authority to the Air Council (now the Air Force Board) to make use of the Church, at no fee to the Air Council, subject to the agreement that 'the Air Council shall be wholly responsible for the repair and maintenance and insurance of the Church (including the curtilage thereof) and its fittings and contents and performance of services and ceremonies therein.’

Legal Status

The St Clement Danes Fund, registered charity number 250350 was superseded by CIO named St Clement Danes Church Fund (‘the Fund’), registered charity number 1168717 on 1 April 2018. The charity remains governed under the terms of the following documents:

Governance

The Fund Scheme determines that the Trustee Body consists of two ex-officio trustees and up to eight coopted trustees. The two ex-officio trustees at the time of these annual accounts held the following positions

The Fund Scheme requires Trustees to meet at least twice per year with a quorum being achieved with three members. An independent investment adviser attends meetings to provide Trustees with the specialist information they require to judge past portfolio performance and to plan future investment strategy. The Trustees are also supported by the Chaplaincy Council, which provides the structure and governance for the day-to-day running of the Church.

Meetings were chaired throughout the financial year in question by the Chairman, Air Vice Marshal Al Gillespie, to discuss the strategic direction of the maintenance and improvement of the fabric and facilities of the Church including; investment performance; the management of risk; fundraising; and comprehensive updates from Church management with regards to matters of the moment. In addition, where appropriate, matters are also dealt with by Trustees ex-Committee to ensure continuity of governance.

The Trustees have constituted a Finance Committee for which they have set clear terms of reference and from which they receive regular reports on their activities.

The Finance Committee

Trustees delegate the oversight of all financial operations and for ensuring the Fund’s short and long-term viability to the Finance Committee. The Finance Committee meets at least biannually to implement the financial strategy of the Fund and to oversee the management, investment and disbursement of this strategy within the constitution of the Fund.

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The Estate Committee

The Church, listed Grade1 by Historic England, was rebuilt in 1682 to a design by Sir Christopher Wren with the steeple added in 1719 by James Gibb.

In order to meet the obligations set by the Diocese of London, the Trustees delegate the oversight of the repair, maintenance, improvement, health & safety and other statutory compliance of the Church including its curtilage to the Estate Committee. It achieves this by commissioning quinquennial inspections and other surveys by appropriate independent professional consultants to inform and prioritise proactive planned maintenance and repair. This process also helps identify structural or operational deficiencies allowing more focused financial budgeting. An example being the Trustees decision to obtain advice, quotations and Faculty consent for taking down and rebuilding the steeple to remedy defects in the existing construction and mitigate further damage and health & safety risks. This project is ready to be implemented and will take approximately 18months to complete.

The Trustees have future plans for improving the facilities of the Church, subject to the necessary approvals and funding and have been working closely with Westminster City Council and the Northbank Business Improvement District (BID) Project Team involved with the pedestrianisation and traffic management changes to the Aldwych/Strand area of which the Church forms part.

The Estate Committee meet at least biannually and as required where major projects are proposed.

Connected Charities

Nil

Induction and Training of Trustees

All new Trustees receive an induction pack that covers the Charity Commission’s requirements (including annual reports & financial statements, minutes of meetings and strategic development/business plans). Trustees are invited to attend training courses and, as a minimum, are recommended to attend the Trustee Training Course.

The course covers the following subjects;

Further trustee training is provided as required, on an on-going basis.

Statement of Risk

The Trustees review the major risks facing the Fund as part of the annual business planning process. The Trustees continue to work to identify significant risks to the Fund and to implement procedures to both mitigate risk and to minimise potential impact should risks materialise.

Top 3 risks are:

  1. Lack of available funding to complete required maintenance of the Church whilst maintaining the longer-term future of the Fund. Mitigation - Trustees review capital requirements and obtain external advice to ensure appropriate fundraising strategy employed as necessary. Sufficient reserves agreed and maintained within Fund to ensure core expenditure requirements continue to be achieved.

  2. 2 -

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

  1. Income is inadequate for regular commitments. Mitigation - Scrutiny of budget by Finance Committee at least biannually to identify potential income shortfalls & adjust accordingly. Fixed agenda item for Trustees’ Meeting. Review of investment performance by Finance Committee and Independent Financial Advisor annually

  2. Loss of Trustees/Trustee Board lacking in appropriate expertise. Mitigation - Trustee induction and ongoing training. Review of trustee rotation and succession planning. Competence framework for Committee and Board.

The Trustees are satisfied that the arrangements for managing these risks are adequate and subject to

sufficiently rigorous monitoring and control.

The Fund operates systems of internal control which are designed to provide reasonable assurance against

material misstatement or loss. They include:

Statement of Public Benefit

St Clement Danes provides a benefit to the public, the Royal Air Force personnel, families and veterans with the necessary spiritual and pastoral wellbeing to carry out the Royal Air Force contribution to the Defence of the United Kingdom and its interests.

St Clement Danes promotes military efficiency by underpinning esprit de corps and fostering the character, spirit and attitude required to face challenges and danger associated with military service. As a result, the Fund derives a benefit to the general public in helping to provide personnel who are motivated, have high morale and are willing to serve the needs of their country and that of its public, at all times.

St Clement Danes is a national Memorial of Remembrance, housing the unique hand written Books of Remembrance which record the names of all service personnel who have paid the supreme sacrifice sine the formation of The Royal Flying Corps in 1912. These books are on public display for all to view and pay their respects to the fallen.

As a premier example of a Grade 1 listed Sir Christopher Wren Church, the church is open every day except Bank Holidays, to enable the public to learn the history and heritage of Wren’s architecture, London’s history and the history of the Royal Air Force. The church is open to all for private prayer, contemplation and regular services three times per week.

When planning the Church’s activities, the Trustee Board members have considered the Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. In shaping our objectives for the year and planning our activities, the trustees have also considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

Aims

The vision of the Church which is supported by the Fund is to:

‘Be a living Royal Air Force memorial for both the Service and the Nation as well as a symbol of the abiding courage and spiritual fortitude of Royal Air Force personnel.’

Performance and Achievement

They year started with the church closed during lockdown and finished with the church beginning to reopen for

regular worship. In between there were numerous false starts.

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

July 2020 saw the opening of the building for private prayer and in early August, Sunday services began – albeit on a pared back Covid safe basis with just one professional singer, no congregational singing, and communion in one kind.

This continued for a few weeks during which the annual Sandakan Memorial Service was held, a couple of weddings and even a ‘lean’ Battle of Britain Commemoration.

However, it was obvious by early October that there was going to be a second lockdown and this duly happened after All Saints Sunday.

The church briefly reopened for the Advent Sunday carol service, held services on the following Sunday, before closing again as London went to Tier Four and then to a ‘major incident’.

This third closure continued until Good Friday when the church began regular worship, and services have continued since that time.

Throughout 2020 best effort were made to keep the church open as much as possible, while complying with Government guidance and ensuring the staff had a safe environment in which to work.

The one bright note from this time has been the growth of our online ministry. We now have a suite of worship resources including daily readings and prayers and a weekly podcast which attracts several hundred listeners. Experiments have started with streaming services and these will be developed in 2021 / 22.

Development Office

In October 2019, the Church Fund appointed a Director of Development on a two year contract. The purpose of this was twofold; to broaden the outreach and accessibility of the church to potential beneficiaries and to produce and implement a strategy to provide income growth and donor acquisition.

The church launched a new web site which has given significantly greater reach; we can now broadcast podcasts through it, have daily readings and prayers as well as suitable material for spiritual development. It can be viewed on www.stclementdanesraf.org

Social media portals were also established on Twitter, Facebook and Instagram. A new quarterly newsletter, Eagle & Anchor, is now produced for church supporters and beneficiaries.

With the establishment of the Development Office, bringing professional fundraising capabilities to the charity; a new fundraising database, quarterly newsletters and proactive supporter acquisition is positioning the charity in a stronger financial position.

The church is developing a live streaming system to enable all regular services, marriages, baptisms, memorial services and events to be streamed to the public and force personnel throughout the globe, reaching the international community, which will be live in 2022.

Although curtailed by the Covid-19 pandemic, preparations are well advanced to launch the most ambitious fundraising appeal; “The St Clement Danes Church Fund 1941 Appeal” on RAF Founders Day in April 2022.

This appeal will seek to raise £10,000,000 to rebuild and restore the 1719 James Gibbs designed Steeple and to modernise the church for the benefit of RAF personnel and the public.

Over the next 5 years the development office will continue to support the funding requirements of the charity throughout the capital appeal.

Investment Performance

The market value of the Fund’s investment portfolio at 31 March 2021 was £866,957 (2020: £746,833). There were no additional investments and no funds were drawn down during the year. The portfolio is managed on behalf of the Fund by Investec Wealth and Management.

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The Fund's portfolio is monitored by the Trustees who regularly seek professional investment advice from a third party. The current investment objectives of the Fund are

For the year to March 2021, the portfolio posted a return of 20.18% against the benchmark of 19.18% (2020: posted a return of -11.44% against the benchmark of -11.47%). Income of £27,946 was achieved (2020: £44,837); this is not against a budget or target.

Remuneration Policy

Those who give their time do so voluntarily in order to develop themselves, add benefit to the Service and provide additional capacity.

Financial Review

The Fund’s income for the year was significantly reduced compared to the previous year: £262,313 in 2021

compared to £483,639 in 2020.

In addition to legacy and donated income, the Fund’s other incoming resources were investment income and furlough grants. The Church was either closed or partially closed for the majority of the year leading to an almost complete loss of income from events.

Investment income receipts were reduced in 2021, primarily due to the drawdown of investments the previous year; £27,946 in 2021 (£44,837 in 2020). All other income sources were significantly reduced due to the closure of the Church due to COVID-19, although the new website, introduced in late 2019, did generate a number of donations online.

The Fund additionally receives public support through the utilisation of Ministry of Defence employees. The Fund assigns an estimated value to the support provided, which is recognised as a gift in kind as identified within notes 3 and 12 to the accounts.

Expenditure was below the budget primarily due to the closure of the Church and the consequent reduction in event costs. Routine and reactive maintenance continued and professional fees were incurred in preparation for capital works. Staff were furloughed for the majority of the year. Information regarding the Fund's expenditure can be found within notes 8 and 9.

Total funds increased slightly to £1,247,294 (2020: £1,244,402) as a result of an increase in the value of investment assets, but almost entirely offset by running costs expenditure still exceeding income.

Reserves

The Trustees have set a target for the unrestricted reserve level of £100,000 to ensure short-term liquidity and adequate working capital are maintained.

Investments

The Fund maintains a neutral ethical investment policy to such an extent deemed possible by the continued

investment within pooled funds.

ST. CLEMENTS DANES CHURCH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Additionally, on 2 July 2015 the following ethical statement was introduced to the fund: The Charity has the right to exclude investing in companies whose activities act contrary to the Charity's aims and objectives. As the Charity has decided to hold pooled investments, the Trustees acknowledge that they need to be pragmatic with regard to ethical investments and therefore have no current exclusions in place. However, they reserve the right to add exclusions in future as appropriate.

The Trustees continue to work closely with the investment manager, taking into consideration their view of market prospects when they consider expenditure requirements and reviewing the investment strategy.

The investment is subject to ongoing regular review to ensure it continues to adequately represent the current and future needs of the Fund.

Plans for future periods

The majority of future plans are covered in the Development Office section above. The trustees have engaged the Development Director / Fundraiser for an additional 2 years until Sep 2023. He is making good progress in building a portfolio of interested parties and will soft-launch the ‘1941 Appeal’ at the RAF Club on 15 Dec 2021 with the launch of the St Clement Danes Cocktail Book. This launch event will include provide an opportunity for trustees and ambassadors to engage and brief those sponsoring cocktails in the book on future plans.

Plans are starting to be made for the Founders’ Day service on 3 Apr 2022 and the follow-on reception in the Royal Courts of Justice. This event will expose our longer-term plans for the spire repair and crypt expansion to our Royal Patron, Ambassadors and selected high net-worth individuals who have expressed an interest in supporting the 1941 Campaign. The Chief of the Air Staff and the majority of the Royal Air Force Board will also be in attendance and provide their support.

Overall, this is a very exciting time for the Church, the Charity and the 1941 Campaign. We are on the cusp of a launch with interest in support growing on a daily basis.

Statement of Trustees' Responsibilities

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Fund and of the incoming resources and application of resources of the Fund for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the Trust Deeds. They are also responsible for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

By order of the Trustees .............................. Air Vice-Marshal Al Gillespie - Chairman Trustee Dated: .........................

ST. CLEMENTS DANES CHURCH FUND

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

ST. CLEMENTS DANES CHURCH FUND

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ST. CLEMENTS DANES CHURCH FUND

I report to the charity trustees on my examination of the accounts of St Clement Danes Church Fund for the year ended 31 March 2021 which are set out on pages 9 to 22.

Responsibilities and basis of report

As the trustees of the CIO you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the CIO’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the CIO as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

James Cross, FCA

For and on behalf of Moore Kingston Smith LLP Chartered Accountants Devonshire House, 60 Goswell Road, London, EC1M 7AD

Dated: .........................

ST. CLEMENTS DANES CHURCH FUND

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted Designated
Restricted
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
214,131
10,000
-
Charitable activities
4
802
-
-
Investments
6
27,946
-
-
Other income
7
9,434
-
-
Total income
252,313
10,000
-
Expenditure on:
Raising funds
8
44,737
-
-
Charitable activities
9
301,834
31,824
1,150
Total resources expended
346,571
31,824
1,150
Net gains on investments
13
120,124
-
-
Net incoming/(outgoing) resources before
transfers
25,866
(21,824)
(1,150)
Net incoming/(outgoing) resources before
transfers
25,866
(21,824)
(1,150)
Gross transfers between funds
(25,866)
25,866
-
Net movement in funds
-
4,042
(1,150)
Fund balances at 1 April 2020
100,000
1,141,487
2,915
Fund balances at 31 March 2021
100,000
1,145,529
1,765		 Total
2021
£
224,131
802
27,946
9,434
262,313
44,737
334,808
379,545
120,124
2,892
2,892
-
2,892
1,244,402
1,247,294

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

All income and expenditure derive from continuing activities.

ST. CLEMENTS DANES CHURCH FUND

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted Designated
Restricted
funds
funds
funds
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
295,795
51,978
-
Charitable activities
4
59,888
-
-
Other trading activities
5
20,931
-
-
Investments
6
45,564
-
-
Other income
7
9,483
-
-
Total income
431,661
51,978
-
Expenditure on:
Raising funds
8
26,369
-
-
Charitable activities
9
428,663
82,776
3,457
Total resources expended
455,032
82,776
3,457
Net losses on investments
13
(127,775)
-
-
Net outgoing resources before transfers
(151,146)
(30,798)
(3,457)
Gross transfers between funds
151,146
(151,146)
-
Net movement in funds
-
(181,944)
(3,457)
Fund balances at 1 April 2019
100,000
1,323,431
6,372
Fund balances at 31 March 2020
100,000
1,141,487
2,915		 Total
2020
£
347,773
59,888
20,931
45,564
9,483
483,639
26,369
514,896
541,265
(127,775)
(185,401)
-
(185,401)
1,429,803
1,244,402

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

All income and expenditure derive from continuing activities.

ST. CLEMENTS DANES CHURCH FUND

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Endowment funds- general
General endowment funds
Permanent endowment
Expendable endowment
Income funds
Restricted funds
21
Endowment funds - Designated funds
Unrestricted funds		 2021
£
£
861,667
50,205
348,538
398,743
(13,116)
385,627
1,247,294
-
-
(100,000)
100,000
1,765
1,145,529
100,000
1,247,294		 2020
£
£
741,543
78,945
480,673
559,618
(56,759)
502,859
1,244,402
-
-
(100,000)
100,000
2,915
1,141,487
100,000
1,244,402		 2020
£
£
741,543
78,945
480,673
559,618
(56,759)
502,859
1,244,402
-
-
(100,000)
100,000
2,915
1,141,487
100,000
1,244,402
1,244,402
2,915
1,141,487
100,000
1,244,402

The financial statements were approved by the Trustees on .........................

..............................

Trustee

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

St. Clements Danes Church Fund is a registered charity in the United Kingdom. The address of the registered office is given in the Trustees' report of these financial statements. The nature of the Charity's operations and principal activities is to raise money for educational establishments, prevention or relief of poverty of homeless people and advancement of arts.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). 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 investments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The financial statements have been prepared on a going concern basis. The trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the trustees have concluded that they can continue to adopt the going concern basis in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

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.

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Charitable expenditure comprises those costs incurred by the Charity in delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to those activities and those costs of indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include audit fees and accountancy costs linked to the strategic management of the Charity.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 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.

1.8 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.

Derecognition of financial liabilities

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

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.9 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.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees 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.

3 Donations and legacies

Unrestricted Designated
funds
funds
2021
2021
£
£
Donated services
151,607
-
Donations
10,041
10,000
Bequests and legacies
50,859
-
Memorial books
640
-
Badges
984
-
Bells
-
-
Choir practice fees
-
-
214,131
10,000		 Total Unrestricted
Designated
funds
funds
2021
2020
2020
£
£
£
151,607
126,144
51,978
20,041
53,872
-
50,859
105,615
-
640
840
-
984
1,918
-
-
1,978
-
-
5,428
-
224,131
295,795
51,978		 Total
2020
£
178,122
53,872
105,615
840
1,918
1,978
5,428
347,773

4 Charitable activities

Special
Special
Standard
Total
services services services 2020
2021 2020 2020
£ £ £ £
Sales within charitable activities 802 41,173 18,715 59,888

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

5 Other trading activities

Car parking
Events hire
Sales
Other trading activities		 Total Unrestricted
funds
2021
2020
£
£
-
915
-
17,619
-
2,397
-
20,931		 Total Unrestricted
funds
2021
2020
£
£
-
915
-
17,619
-
2,397
-
20,931
20,931

6 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Dividends 27,773 44,837
Interest receivable 173 727
27,946 45,564

7 Other income

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Miscellaneous 8,508 767
St Mary Le Strand Income 926 5,240
Listed places of Worship scheme: VAT reclaim - 3,476
9,434 9,483

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising and publicity
Fundraising costs 16,248 14,001
Unit badges 1,025 1,015
Investment manager fee 2,852 4,175
Memorial books 287 291
Raising voluntary income 24,325 6,887
Fundraising and publicity 44,737 26,369
44,737 26,369

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Charitable activities

Standard and special services
Choir fees
Director of music fees
Organist's fees
Insurance
Utilities
Cleaning
Maintenance
Major refurbishment
St Mary le Strand
Organ scholarship (Restricted)
Other
Fundraising costs
Bad debt
Share of support costs - Special services (see note 10)
Share of support costs - Standard services (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Designated funds
Restricted funds		 2021
£
1,646
10,448
29,000
871
2,697
6,006
1,245
27,274
32,344
(1,370)
-
(520)
-
-
109,641
42,728
148,264
34,175
334,808
301,834
31,824
1,150
334,808		 2020
£
28,435
27,806
29,000
305
2,423
9,043
8,937
49,986
82,776
5,256
3,535
7,195
32,714
262
287,673
64,015
116,739
46,469
514,896
428,663
82,776
3,457
514,896

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

10 Support costs

Support costs
Staff costs - Notional
Staff costs - Direct
Consultancy fees
Audit fees
Legal and professional
Finance costs
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
139,613
11,994
10,958
-
64,746
-
-
8,609
-
13,516
-
56
215,317
34,175
24,325
-
190,992
34,175
215,317
34,175		 2021
£
151,607
10,958
64,746
8,609
13,516
56
249,492
24,325
225,167
249,492		 Support
costs
Governance
costs
£
£
165,009
13,113
22,632
-
-
-
-
9,408
-
23,948
-
-
187,641
46,469
6,887
-
180,754
46,469
187,641
46,469		 2020
£
178,122
22,632
-
9,408
23,948
-
234,110
6,887
227,223
234,110

11 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Employees

Employment costs 2021 2020
£ £
Wages and salaries 162,565 200,754

No member of staff employed directly by the Fund earned more than £60,000 during the year.

Trustees received no reimbursement for travel and out of pocket expenses in this or the preceding financial year.

The Ministry of Defence employed six members of staff (2020: seven) who spent at least part of their time dealing with the administration of the St Clement Danes Fund. The Ministry of Defence makes no salary recharge for the individuals performing day to day administration, because of the Fund's charitable status. The values of staff salaries paid by the Ministry of Defence are estimated at £151,607 (2020: £178,122) and are included in the above staff costs.

The Ministry of Defence estimate of staff costs of £151,607 represents the following percentages of staff time: Chaplain - 100%, Squadron Leader - 3%, Flight Lieutenant - 3%, Band D Civil Servant - 100%, Band E1 Civil Servant - 100% and Caretaker 100%. The directly employed staff account for 0.46 full time equivalents (2020: 0.95) and consisted of a number of Deputy Vergers who are employed on zero hour contracts.

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Gain/(loss) on sale of investments 120,124 (127,775)
14
Fixed asset investments
Cost or valuation
At 1 April 2020
Valuation changes
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income		 Listed
investments
£
741,543
120,124
861,667
861,667
741,543
2021
2020
£
£
442
6,020
434
63,049
49,329
9,876
50,205
78,945
2021
2020
£
£
590
336
2,835
21,255
9,691
35,168
13,116
56,759

ST. CLEMENTS DANES CHURCH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

17 Retirement benefit schemes

The charity offers all eligible employees the opportunity to join a defined contribution pension scheme every three years. The assets of these schemes are held separately from those of the charity in an independently administered fund.

18 Capital commitments

There were no capital commitments not provided for in the financial statements (2020 - none).

19 Related party transactions

There were no related party transactions that require disclosure in the period under review (2020 - none).

20 Taxation

As a charity St. Clements Danes Church Fund is exempt from income and gains falling within section 466-493 of the Corporation Tax Act 2010 to the extent that these are derived from its charitable activities.

21 Restricted funds

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April 2019 resources expended 1 April 2020 resources expended 31 March 2021
£ £ £ £ £ £ £
Holy
Sacrament 500 - - 500 - - 500
Organ
Scholarship 5,536 - 3,457 2,079 - (1,150) 929
RAF 100 336 - - 336 - - 336
6,372 - 3,457 2,915 - (1,150) 1,765

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