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2021-10-31-accounts

Church Extension Association (Incorporated) Limited by Guarantee

Report and Financial Statements Year Ended 31 October 2021

Registered Company Number 00032430 Registered Charity Number 00200240

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021

Page
Report of directors and trustees 2
Independent auditor's report 7
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes forming part of the financial statements 14

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021

Reference and administrative details

Trustees

F H M Baumberg E C Brogden A I Cook C M Heybourn S J Hird S I McCarten A Taylor T D Wright

Secretary and registered office

C M Heybourn

St Michael's Convent, Vicarage Way, Gerrards Cross, Buckinghamshire, SL9 8AT

Company number 00032430
Charity registration number 200240

Auditors

Moore Kingston Smith LLP Devonshire House, 60 Goswell Road, EC1M 7AD

Investment managers

Brewin Dolphin Securifes Limited, -. !(&%$#'" !)##*+ London, EC1A 9BD

Solicitors

Stone King LLP 13 Queen Square, Bath, BA1 2HJ

1

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021

The directors and trustees present their report together with the audited financial statements for the year ended 31st October 2021.

Legal and administration details

Legal and administrative information set out on the previous page forms part of this report. The financial statements comply with the current statutory requirements, the Memorandum and Articles of Association and 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 (The FRS 102 Charities SORP)

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit.

Structure, governance and management

The principal activity of the Association is that of a charitable organisation engaged in religious education and general pastoral work. The Association was founded in 1864 and in 1890 was incorporated as a company limited by guarantee and is governed by its Memorandum and Articles of Association. In the event of the Association being wound up each Member has guaranteed to contribute a maximum of £1.

The registered charity number is 200240, the company number is 00032430.

Trustees

The trustees are the Sister Provincial, the Assistant Provincial and six other elected Members.

The Appointment is for a period of three years after which they may be re-elected.

The trustees of the Association during the year were:

F H M Baumberg E C Brogden A I Cook C M Heybourn (Secretary) S J Hird S I McCarten A Taylor (Chair) T D Wright

The directors meet a minimum of three times a year, the Secretary draws up the agenda, and items are included in response to established practices and as a way of monitoring the administration of the charity.

2

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021 (continued)

Trustees are elected by the Members or co-opted by the Trustees under the Memorandum and Articles of Association of Church Extension Association (Inc)

Ongoing support and training is made available as necessary, as is advice from legal and financial professional advisors.

Risk management

The directors and trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Community, and are satisfied that procedures are in place to mitigate our exposure to the major risks.

The Trustees identified six areas of risk:

Disaster: From fire - mitigated by regular fire alarm and smoke detector checks; fire safety training; regular boiler checks; Insurance in place.

From flood - mitigated by regular boiler and plumbing checks; Insurance in place.

Building: Maintenance contracts; emergency numbers visible; fault reporting procedures; regular insurance surveys; allowing adequate budget provision; insurance in place. Computers: Virus check in-built; back-ups in place; passwords used. People: Ageing members - funerals budgeted for; health and safety procedures are a priority. Employee loss - Contracts of employment; use of ‘Peninsula’. Financial: Fraud, Investments - Annual audit; Sister Bursar in place; cash is kept secure; regular check on investments and ratings; annual meeting with business advisors. Having sufficient income to meet expenditure. Reputation: Wrong counselling advice - professional insurance and supervision in place; on-going professional training. Safeguarding policies in place and training made available for spiritual direction/retreat work.

3

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021 (continued)

Objectives and activities

The Association is established for the furtherance of religion, education and the relief of poverty. These objectives are met through the outreach and ministry of the Sisters, who live at the properties that the Association owns and those locations where it operates, and the trustees ensure that they benefit the public. The trustees have had regard to the Charity Commission’s guidance on public benefit, including ‘public benefit: running a charity (PB2)’. A full description of these activities can be found on the Community’s website - www.sistersofthechurch.org.

Achievements and performance

The Community at St. Michael’s Convent, Vicarage Way, Gerrards Cross, Buckinghamshire SL9 8AT have continued with their daily worship and intercession, which has become even more relevant throughout the pandemic. Members of the public were welcomed for Retreats and Quiet Days when Covid restrictions allowed. Further work has been done to develop the garden and this was shared with others through an Open Garden Day with the National Open Garden Scheme. The major work of re-roofing the 1909 part of the house was undertaken when we were unable to have guests because of Covid. Sisters have continued with the ministries of Quiet Days, Counselling and Spiritual Direction, mostly online. The eldest members of the Community live and are cared for at St Michael’s Convent Gerrards Cross.

The charity also undertakes the following activities:-

Women and children are supported, who have yet to gain indefinite leave to remain in the UK. They receive both financial and pastoral help in their transition to independent living.

At our Bristol house the work has continued to be that of pastoral care outreach in the local community, mainly centred on the house but also working with other agencies and food-banks. At the house, this care has taken the form of both practical assistance, such as giving food parcels at the door, and befriending and listening and giving prayer support to callers and volunteers. Some individuals receive extensive and long-term support from the Sisters.

There are a team of volunteers who assist the Sisters with their Ministry. The volunteers contributed approximately 6,000 hours in the year.

Outside the house, Sisters provide religious education through such means as talks, preaching and spiritual accompaniment. Sisters make pastoral visits at home, in hospital, and prison when permitted.

Anita has continued with her Ministry in the Benefice of East Clevedon and has co-ordinated the contributions coming locally for the Loaves and Fishes project in Bristol.

She has also continued to serve as Chair of the St. Andrew’s Trust and a member of the Anglican Religious Communities Development Trust. She serves as a Member of the General Synod of the Church of England and several other related bodies.

At West Harrow, Vivien is a Lay Chaplain at St Martin in the Fields. She promotes religious education through various ministries. She is a member of an ecumenical team that runs Weeks of Accompanied Prayer in parishes throughout the South East. She also accompanies people on Ignatian Retreats, including some in Wales. Locally, and in London, she sees individuals for Spiritual Direction/Supervision. Vivien visits those in need of a listening ear.

Vivien's face to face ministry of accompaniment has been curtailed during the year, but she has carried on by phone, virtually on the internet and in person when allowable. Marguerite Mae has also been living at the West Harrow house.

Other sisters live beyond community houses to care for family members and relatives. They remain committed to a life of prayer and service and attend community gatherings.

4

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2021 (continued)

Financial Review

This year's activities resulted in an overall surplus of £1,042,035 (2020 - £102,916 deficit), which has been transferred to accumulated reserves. Of the total surplus, £15,669 relates to realised gain on investments, £1,271,789 relates to unrealised gains on investments and there was an operating deficit of £245,423

Reserve Policy

The year’s surplus has increased the accumulated reserves to £15,121,572 (2020 - £14,079,537 ). The Directors consider that this level of reserves is necessary for the future financial stability of the charitable company for two reasons:-

Total reserves are represented by £7,544 of restricted funds, £104,615 of designated funds and £6,985,597 invested in fixed assets.

This leaves £8,023,816 as free reserves of the charity.

The charity seeks to maintain free reserves in order to continue to deliver its charitable objectives to the charities beneficiaries in the short term. The charity has calculated that the working capital required for the continuity and operation of the charities activities for a period of 12 months is £ 557,000. At the year end, total reserves were above this level.

Investments Policy

Investments are stated at the market value prevailing at the balance sheet date. The market value of quoted securities is based on the bid price. Any gain or loss on revaluation is taken to the SOFA.

The investment policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. There is also an Ethical Policy precluding investment in any company which, after reasonable enquiry, clearly has significant profits from an activity which is contrary to the objectives of the Church Extension Association.

Plans for the future

The Sisters plan to continue with their established ministries whilst being open to the possibilities of new callings.

They continue to seek ways to make a smaller impact on the environment.

They plan to continue seeking financial support for the ministry with women and children who have come to this country as asylum seekers, and displaced persons.

They are returning to the ministry of hospitality and hope to be available for those who have been especially affected by the pandemic.

The Sisters have considered the effect of Covid-19 on the charity's finances in current and future periods.

In the short to medium term, the charity is protected from this by the significant reserves it holds in liquid investments, which can be readily converted into cash if required. It has enough unrestricted funds

to continue its charitable activities and fund future potential deficits, should they arise.

5

Church Extension Association (Incorporated)

Report of the Trustees for the year ended 31 October 2021 (continued)

Statement of Trustees’ responsibilities

The trustees (who are also the directors of the Church Extension Association (Incorporated) for the purpose of company law) are responsible for preparing the report of the directors and trustees report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the profit or loss of the charitable company for that period.

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

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions, disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Audit information

All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the company's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The trustees are not aware of any relevant audit information of which the auditors are unaware.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the board of trustees and signed on their behalf by:

C M Heybourn Trustee & Secretary

Date:

6

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CHURCH EXTENSION ASSOCATION (INCORPORATED)

Opinion

We have audited the financial statements of Church Extension Association (Incorporated) (‘the charitable company’) for the year ended 31 October 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 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 financial statements section of our report. We are independent of the Corporation 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 trustees’ 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 company'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 trustees are responsible for the other information. 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.

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.

7

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CHURCH EXTENSION ASSOCATION (INCORPORATED)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, 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 charitable company’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 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

8

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CHURCH EXTENSION ASSOCATION (INCORPORATED)

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

9

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CHURCH EXTENSION ASSOCATION (INCORPORATED)

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 19/05/2022

10

Church Extension Association (Incorporated) Statement of Financial Activities for the year ended 31 October 2021

Note
Income from:
Accommodation
Donations
Donations from Overseas
Legacies
Charitable activities
Royalties & Energy,
Interest
Sisters earning and
pensions
Investments
Total income
Expenditure on:
Charitable activities
2
Total expenditure
Net gains/(losses) on
investments
Net income/
(expenditure)
Transfer between
funds
Net movement in
funds
12
Balance brought
forward at 1
November 2020
12
Balance carried
forward at 31 October
2021
12		 General
Fund
(unrestricted)
£
1,985
15,197
21,144
718
171,286
265,267
475,597
695,141
695,141
1,287,458
1,067,914
562,649
1,630,563
13,378,850
15,009,413		 Bristol
(designated)
£
8,206
1,181
100,661
110,048
107,870
107,870
-
2,178
(590,802)
(588,624)
693,239
104,615		 Relief
Fund
(designated)
£
2,806
2,806
32,836
32,836
-
(30,030)
28,153
(1,877)
1,877
-		 Relief
Fund
(restricted)
£
4,200
4,200
2,227
2,227
-
1,973
1,973
5,571
7,544		 Total
funds
2021
£
1,985
30,409
-
22,325
100,661
718
171,286
265,267
592,651
838,074
838,074
1,287,458
1,042,035
-
1,042,035
14,079,537
15,121,572		 Total
funds
2020
£
12,416
823,696
4,448
12,662
107,444
847
165,525
195,250
1,322,288
730,680
730,680
(694,524)
(102,916)
-
(102,916)
14,182,453
14,079,537

All amounts relate to continuing activities.

All recognised gains and losses in the current and prior year are included in the statement of financial activities.

11

Church Extension Association (Incorporated)

Balance Sheet at 31 October 2021

Note
Fixed assets
Tangible assets
7 & 8
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
General fund
Designated funds
Restricted funds
Total funds
12		 2021
£
19,494
137,865
157,359
(77,211)
15,009,413
104,615		 2021
£
6,985,597
8,055,827
15,041,424
80,148
15,121,572
15,121,572
15,114,028
7,544
15,121,572		 2020
£
95,448
182,446
277,894
(99,067)
13,378,850
695,116		 2020
£
7,107,970
6,792,740
13,900,710
178,827
14,079,537
14,079,537
14,073,966
5,571
14,079,537

Approved and authorised for issue on behalf of the Executive Body on

Signed on behalf of the Executive Body of the Church Extension Association (Incorporated);

A Taylor C M Heybourn Chief Officer Member of the Executive Body Secretary

Registered Company Number: 00032430

The notes on pages 14 to 26 form part of these financial statements.

12

Church Extension Association (Incorporated) Statement of Cash Flows for the year ended 31 October 2021

Cash generated from operating activities
Net cash provided by operating activities
Cash flows from investing activities
Investment income
Proceeds from the sale of property, plant and equipment
Purchase of fixed assets
Proceeds from the sale of investments
Purchase of investments
Movement on cash held in investment portfolio
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Investment income
(Profit)/loss on sale of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities
Net income/(expenditure) for the reporting period (as per the statement
of financial activities)		 2021
£
(334,219)
265,267
-
-
295,698
(1,691,732)
1,420,405
289,638
-
-
(44,581)
182,446
137,865
2021
£
1,042,035
122,373
(1,287,458)
(265,267)
-
75,954
(21,856)
(334,219)		 2020
£
1,692,942
195,250
-
-
486,865
(1,169,147)
(1,292,836)
(1,779,868)
-
(86,926)
269,372
182,446
2020
£
(102,916)
118,202
694,524
(195,250)
10,738
1,255,855
(88,211)
1,692,942

13

Church Extension Association (Incorporated) Notes forming part of the Financial Statements For the year ended 31 October 2021

1 Accounting policies

Status of company

The Church Extension Association (Incorporated) was incorporated under the Companies Act 1862 to 1890 and is a company limited by guarantee, not having a share capital. The liability of its members is limited to £1 per member. Its registered address is St Michael’s Convent, Vicarage Way, Gerrards Cross, Buckinghamshire, SL9 8AT.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with 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 (The FRS 102 Charities SORP) the Companies Act 2006 and Charities Act 2011.

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 pound.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

Going Concern Basis

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements and in particular have considered the charity’s forecasts and projections and have taken account of pressures on donation and investment income from the Covid-19 pandemic. The trustees have concluded that there is a reasonable expectation that the charitable entity has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

Income

The charity, in common with many others, derives a proportion of its income from voluntary donations which can only be recorded on receipt. Donations are therefore included in the accounts on the basis of cash received, except as follows:

All other incoming resources, including legacies, are recognised in the financial year in which the charity becomes entitled to the income, the amount can be measured and receipt is probable.

14

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

1 Accounting policies (continued)

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expense was incurred.

Charitable activities comprises the direct costs, staff costs and overheads, including governance costs of carrying out the charity’s objectives.

Governance costs includes the costs of compliance with constitutional and statutory requirements.

Expenditure on raising funds comprise the direct costs relating to raising funds.

Depreciation

Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets, except freehold land, over their expected useful lives. It is calculated at the following rates:

Furniture and equipment - 10% reducing balance
Computers Hardware/Software - 33% Straight line
Motor vehicles - 25% reducing balance
Freehold land - Nil
Freehold buildings - 2% straight line
Freehold buildings - Refurbishment - 2% straight line
Freehold buildings - Improvements - 5% straight line

Investments

Investments are stated at the market value prevailing at the balance sheet date. The market value of quoted securities is based on the bid price quotation. Any realised and unrealised gains and losses on revaluation are taken to the Statement of Financial Activities.

Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

Financial Instruments

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price.

Employee benefits

The cost of short term employee benefits are recognised as a liability and as an expense.

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

Pensions

Contributions to the company's defined contribution scheme are charged to the SOFA in the year which the became payable.

15

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

1 Accounting policies (continued)

Fund accounting

Funds held by the charity are either:

Each year a transfer of funds is recognised to move a designated amount for the branches and the Solomon Islands from unrestricted funds to designated funds.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Trustees to have the most significant effect on amounts recognised in the financial statements:

The annual depreciation charge for property, plant and equipment is sensitive to change in useful economic life and residual values of assets. These are reassessed annually.

16

Church Extension Association (Incorporated)

Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

2 Charitable activities

Bank charges & interest
Chapel & Chaplaincy
Council tax, water charges &
insurance
Depreciation
Donations & Gifts
Donations -Solomon Islands
Education & Training
Funeral related expense
Furniture & Equipment
Renewals
General
Housekeeping & Household
Library
Ministry
National Insurance Sisters
Newsletter
Postage, Stationery,
Computing
Premises - Repair &
Maintenance
Professional fees
Sale of assets/(Profit)
Salaries & Wages
Sisters Care costs
Sisters personal
Telephone
Travel & Motor Exps.
Including Insurance
Utilities
Utilities (Prior years excess
accrual)
Goverance
Publicity		 General
Fund
£
121
588

26,556
118,834
3,074
10,039
7,302
75
2,962
148
28,463
447
1,093
1,671
1,716
8,959
138,908
44,972
-
67,898
128,381
11,602
2,069
15,101
19,498
-
14,550
716
655,743		 Bristol
£
8
328
1,837
119
503
-
400
-
904
-
12,654
-
75,460
-
-
1,349
1,526
-
-
-
-
4,437
1,040
2,623
4,646
36
-
107,870		 West
Harrow
£
-
21
1,881
2,889
425
-
689
-
-
-
3,072
-
-
-
-
388
1,352
-
-
-
-
1,667
417
1,742
2,625
-
-
17,168		 Clevedon
£
-
8
1,958
531
320
-
386
-
300
-
7,051
-
-
-
-
478
6,225
-
-
-
-
2,186
632
959
1,196
-
-
22,230		 Relief
Relief
Fund
Fund
(Restricted)
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,959
4,104
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,959
4,104		 Total
2021
£
129
945
32,232
122,373
4,322
10,039
8,777
75
4,166
148
51,240
447
111,616
1,671
1,716
11,174
148,011
44,972
-
67,898
128,381
19,892
4,158
20,425
27,965
-
14,586
716
838,074		 Total
2020
£
120
3,101
27,525
118,202
3,063
7,194
8,202
4,214
4,132
625
56,751
269
91,152
360
1,780
7,597
81,890
55,637
10,738
65,526
157,451
24,668
4,104
17,288
23,799
(61,064)
15,506
850
730,680

17

Church Extension Association (Incorporated)

Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

3 Governance costs

4

5

General
Fund
£
Audit and accountancy charges
14,550
General expenses
148
14,698
Deficit of income over expenditure for the year
This is stated after charging the following:
Depreciation
Auditors' remuneration - audit services
Staff costs and trustees’ remuneration
Wages
Social security costs
Pension contributions		 Branch
Houses
£
36
-
36		 Total
2021
£
14,586
148
14,734
2021
£
122,373
14,450
136,823
2021
£
94,485
4,344
1,901
100,730		 Total
2020
£
15,506
625
16,131
2020
£
118,202
14,000
132,202
2020
£
91,848
3,687
1,845
97,380

No employee received remuneration amounting to more than £60,000 in either year.

The directors and trustees were not paid or reimbursed for expenses during either year.

Key Management Personnel

Key management personnel include the Trustees and the Bursar. The total employee benefits of the charity’s key management personnel were £nil (2020: £nil).

18

6

7

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

Employees

Employees
The average number of employees during the year was as follows:
Domestic assistants
Administration		 2021
Number
3
1
4		 2020
Number
3
1
4

Tangible assets

Cost
At 1 November 2020
Additions
Disposals
Transfers
At 31 October 2021
Depreciation
At 1 November 2020
Charge for the year
Disposals
At 31 October 2021
Net book value
At 31 October 2021
At 31 October 2020		 Motor
vehicles
£
51,103
-
-
-
51,103
38,774
3,083
-
41,857
9,246
12,329		 Freehold
land and
buildings
(see note 8)
£
7,443,751
-
-
-
7,443,751
389,688
109,469
-
499,157
6,944,594
7,054,063		 Furniture
And
Equipment
£
178,704
-
-
-
178,704
137,126
9,821
-
146,947
31,757
41,578		 Total
£
7,673,558
-
-
-
7,673,558
565,588
122,373
-
687,961
6,985,597
7,107,970

19

8

Church Extension Association (Incorporated)

Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

Freehold land and buildings

St Gabriel's, Clevedon
Land
St Gabriel's, Clevedon
Buildings
10 Furness Road, West Harrow
Land
10 Furness Road, West Harrow
Buildings
Garden House, Gerrards Cross
Buildings
Main House,Gerrards Cross
Land
Main House,Gerrards Cross
Buildings
Main House,Gerrards Cross
Building
refurbishment
Main House,Gerrards Cross
Building
improvements		 Cost
£
6,265
6,265
113,024
113,025
180,397
2,175,000
2,175,000
2,458,800
215,975
7,443,751		 Accumulated
depreciation
£
-
6,012
-
65,068
18,040
-
174,000
193,224
42,813
499,157		 Net book
value
£
6,265
253
113,024
47,957
162,357
2,175,000
2,001,000
2,265,576
173,162
6,944,594

20

9

Church Extension Association (Incorporated)

Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

Investments

Quoted securities at valuation
At 1 November
Additions
Disposals
Realised gain/(loss)
Unrealised (loss)/gain
Accrued Interest
At 31 October
Capital on deposit
Historical cost
Investments
Capital on deposit		 2021
£
5,173,945
1,691,732
(295,287)
15,669
1,271,789
(411)
7,857,437
198,390
8,055,827
6,459,495
198,390
6,657,885		 2020
£
5,186,188
1,169,147
(486,730)
(11,466)
(683,058)
(136)
5,173,945
1,618,795
6,792,740
5,076,607
1,618,795
6,695,402

All investments are listed on the UK Stock Exchange.

There are no investments held by the Church Extension Association (Incorporated) with a market value in excess of 5% of the total portfolio market value as at 31 October 2021.

21

Church Extension Association (Incorporated)

Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

10
Debtors
Other debtors
Prepayments and accrued income
All amounts shown under debtors fall due for payment within one year.
11
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 2021
£
11,931
7,563
19,494
2021
£
40,955
36,256
77,211		 2020
£
78,444
17,004
95,448
2020
£
47,564
51,503
99,067

22

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

12 Funds

For the year ended 31 October 2021

General Fund
Designated Funds:
Branch House
Relief Fund
Restricted Fund:
Relief
Total		 Balance at 1
November 2020
£
13,378,850
693,239
1,877
5,571
14,079,537		 Income
£
475,597
110,048
2,806
4,200
592,651		 Expenditure
£
(695,141)
(107,870)
(32,836)
(2,227)
(838,074)		 Gain/(Losses)
£
1,287,458
-
-
-
1,287,458		 Transfers
£
562,649
(590,802)
28,153
-
-		 Balance at 31
October 2021
£
15,009,413
104,615
-
7,544
15,121,572

For the year ended 31 October 2020

General Fund
Designated Funds:
Branch House
Relief Fund
Restricted Fund:
Relief Fund
Total		 Balance at 31
October 2019
£
13,523,106
656,186
-
3,161
14,182,453		 Income
£
1,196,517
117,406
1,725
6,640
1,322,288		 Expenditure
£
(608,995)
(100,076)
(17,379)
(4,230)
(730,680)		 Gain/(Losses)
£
(694,524)
-
-
-
(694,524)		 Transfers
£
(37,254)
19,723
17,531
-
-		 Balance at 31
October 2020
£
13,378,850
693,239
1,877
5,571
14,079,537

Purpose of funds

Designated funds

In previous years the branch house designated fund included an accumulated amount £612,402 relating to all branch houses.

During 2021 the decision was made to only designate funds related to the Bristol branch house and therefor the balance has been released into unrestricted funds.

Relief Fund

This fund is for the Sisters’ ministry in the financial relief of the poor. Nearly all of it is for women and children family support.

23

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

13 Analysis of net assets between funds

For the year ended 31 October 2021

Tangible Fixed Assets
Investments
Net Current Assets		 General Funds
6,985,597
8,055,827
(32,011)
15,009,413		 Designated
Funds
-
-
104,615
104,615		 Restricted
Funds
-
-
7,544
7,544		 Balance at 31
October 2021
6,985,597
8,055,827
80,148
15,121,572

For the year ended 31 October 2020

Tangible Fixed Assets
Investments
Net Current Assets		 General Funds
7,107,970
6,792,740
(519,983)
13,380,727		 Designated
Funds
-
-
693,239
693,239		 Restricted
Funds
-
-
5,571
5,571		 Balance at 31
October 2020
7,107,970
6,792,740
178,827
14,079,537

14 Contingent liabilities

This entitlement does not extend to any income or movement in value arising from these monies whilst a Sister is a member of the Community, only the original capital amount brought in or inherited.

The total amount of capital brought into the Community or inherited by Sisters whilst a member of the Community, and therefore repayable in the event that a Sister leaves, is £1,049,769.

24

Church Extension Association (Incorporated)

For the year ended 31 October 2021

15 Taxation

As a charity, Church Extension Association (Incorporated) is exempt on income gains falling within section 466-493 of the Corporation Tax act 2010 to the extent that they are derived from charitable activities.

16 Related party transactions

There were no related party transations in the period under review that require disclosure in the financial statements in the period under review.

25

Church Extension Association (Incorporated) Notes forming part of the Financial Statements (continued) For the year ended 31 October 2021

Statement of Financial Activities for the year ended 31 October 2020

Note

Income from:
Accommodation
Donations
Donations from Overseas
Legacies
Charitable activities
Royalties & Energy
Sisters earning and pensions
Investment income
Profit on sale of tangible assets
Total income
Expenditure on:
Charitable activities
2
Total expenditure
Net gains/ (losses) on
investments
Net expenditure
Transfer between funds
Net movement in funds
12
Balance brought forward at 1
November 2019
12
Balance carried forward at 31
October 2020
12		 General
Fund
(unrestricted)
£
12,416
805,369
4,448
12,662
847
165,525
195,250
-		 Bristol
Relief
Fund
(designated)
(designated)
£
£
-
-
9,962
1,725
-
-
107,444
-
-
-
-
-
-
-
-
-		 Relief
Fund
(restricted)
£
-
6,640
-
-
-
-
-
-		 Total
funds
2020
£
12,416
823,696
4,448
12,662
107,444
847
165,525
195,250
-
1,196,517 117,406
1,725		 6,640 1,322,288
608,995
608,995
(694,524)
(107,002)
(37,254)		 100,076
17,379
100,076
17,379
-
-
17,330
(15,654)
19,723
17,531		 4,230
4,230
-
2,410
-		 730,680
730,680
(694,524)
(102,916)
-
(144,256)
13,523,106
13,378,850		 37,053
1,877
656,186
-
693,239
1,877		 2,410
3,161
5,571		 (102,916)
14,182,453
14,079,537

26