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2023-10-31-accounts

Church Extension Association (Incorporated) Limited by Guarantee

Report and Financial Statements Year Ended 31 October 2023

Registered Company Number 00032430 Registered Charity Number 00200240

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2023

Page
Reference and administrative details 1
Report of directors and trustees 2
Independent auditor's report 7
Statement of financial activities for the year ended 31 October 2023 11
Balance sheet as at 31 October 2023 12
Statement of cash flows at 31 October 2023 13
Notes forming part of the financial statements 14

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2023

Reference and administrative details

Trustees

F H M Baumberg E C Brogden C M Heybourn S J Hird 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 00200240

Auditors

Moore Kingston Smith LLP 9 Appold Street, London, EC2A 2AP

Investment managers

RBC Brewin Dolphin Securities 12 Smithfield Street, 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 2023 (continued)

The directors and trustees present their report together with the audited financial statements for the year ended 31st October 2023.

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 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, including the guidance on 'Public Benefit: running a charity ' (PB2).

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 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 and up to the date of approval of the financial statements were:

F H M Baumberg E C Brogden appointed 29 September 2023 A I Cook retired 29 September 2023 C M Heybourn (Secretary) S J Hird 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. Stapley Bequest 200240-1 and Mrs Mary Gutch Charity 200240-2 are both administered by the Trustees. These are linked charities as defined by the charities act 2011 and further details of these are in the notes to these financial statements.

2

Church Extension Association (Incorporated) Report of the Trustees for the year ended 31 October 2023 (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 Association, and are satisfied that procedures are in place to mitigate the 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. Following a lightning strike a conductor will likely be added. 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; ongoing professional training. Safeguarding policies in place; training made available for spiritual direction/retreat work.

3

Church Extension Association (Incorporated)

Report of the Trustees for the year ended 31 October 2023 (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. Members of the public were welcomed for Retreats and Quiet Days. The garden was shared with others through an Open Garden Day with the National Open Garden Scheme. Sisters have continued with the ministries of Quiet Days, Counselling and Spiritual Direction. The eldest members of the Community live and are cared for at St Michael’s Convent Gerrards Cross.

In August three Sisters from the Society of the Precious Blood came to live with the Community at Gerrards Cross. This is expected to be mutually enriching for both communities.

Families and women are supported, some have yet to gain indefinite leave to remain leave in the UK. They receive both financial and pastoral help.

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 longterm support from the Sisters. Sr Teresa Mary was recently ordained Deacon.

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.

Sisters Anita and Annaliese live in Clevedon. They worship in the East Clevedon Benefice. During the past year Annaliese has been involved with ministries in Clevedon.

The Community has left ministry from the West Harrow house and Sister Vivien moved to Gerrards Cross.

Sisters who live beyond community houses to care for family members and relatives 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 2023 (continued)

Financial Review

This year's activities resulted in a surplus of £539,803 (2022 - £1,119,793 deficit), which has been transferred toaccumulated reserves. Of the total surplus, £159,319 relates to realised gain on investments, £329,888 relates to unrealised losses on investments, £661,845 on the sale the property in West Harrow, and there was an operating surplus of £48,527.

Reserves Policy

The year’s surplus has increased the accumulated reserves to £14,724,393 (2022 - £14,184,590).The Trustees consider that this level of reserves is necessary for the future financial stability of the charitable company for two reasons:-

1) £6,569,197 of the reserves is represented by St Michael’s Convent at Gerrard’s Cross and the other properties held by the charity.

2) £7,673,402 of the reserves are represented by investments, the income from which is the company’s principal source of income.

Of the unrestricted reserves £62,852 are designated funds and £6,594,584 is invested in fixed assets. The linked charity Stapley Bequest unrestricted fund was £47,967 (2022 £48,385)

The linked charity Mrs Mary Gutch's unrestricted fund was £131,127 (2022 £134,682) This leaves £7,887,863 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 £ 566,000. At the year end, free 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 came to this country as asylum seekers, and displaced persons.

The following year will be one of transition with the recent election of Sr Susan as Mother Superior.

In the short to medium term, the charity has 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 2023 (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: 31 May 2024

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 2023 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 6, 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

9 Appold Street London EC2A 2AP

Date: 08/07/2024

10

Church Extension Association (Incorporated) Statement of Financial Activities for the year ended 31 October 2023

Note
Income from:
Accommodation
Donations
Donations from Overseas
Legacies
Charitable activities
Royalties & Energy, Interest
Sisters earning and pensions
Investments
Profit on sale of tangible
assets
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 2022
12
Balance carried forward at 31
October 2023
12		 General
Fund
(unrestricted)
£
31,639
18,843
-
242,532
799
106,714
340,482
661,845		 Bristol
(designated)
£
123,212		 Relief
Fund
(designated)
£
24,900
24,900
62,292
62,292
-
(37,392)
37,392
-
-
-		 Relief
Fund
(restricted)
£
10,000
10,000
10,000
10,000
-
-
-
-
-		 Stapley
Bequest
Fund
(unrestricted)
£
50
1,403		 Mrs Mary
Gutch's
Total
Fund
funds
(unrestricted)
2023
£
£
31,639
640
54,433
-
242,532
123,212
799
106,714
3,845
345,730
-
661,845
4,485
1,566,904
6,203
856,533
6,203
856,533
(1,837)
(170,568)
(3,555)
539,803
-
(3,555)
539,803
134,682
14,184,590
131,127
14,724,393		 Restated
Total
funds
2022
£
18,712
35,559
9,590
2,900
80,026
783
162,297
290,790
-
1,402,854 123,212 1,453 600,657
603,793 173,044 1,201 790,227
603,793 173,044 1,201 790,227
(168,061)
631,000
(61,392)		 -
(49,832)
24,000		 (670)
(418)
(418)
48,385
47,967		 (930,223)
(1,119,793)
-
569,608
13,912,839		 (25,832)
88,684		 (1,119,793)
15,304,383
14,482,447 62,852 14,184,590

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.

The notes on pages 13 to 25 form part of these financial statements.

11

Church Extension Association (Incorporated) Balance sheet as at 31 October 2023

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		 2023
£
248,872
99,865		 2023
£
6,594,584
7,673,402
14,267,986
277,313
14,545,299
14,545,299
14,545,299
-
14,545,299		 Stapley
Bequest
Fund
2023
£
-
46,705		 Mrs Mary
Gutch's
Fund
2023
£
-
127,966
127,966
-
3,161
3,161
-
3,161
131,127
131,127
131,127
-
131,127
131,127		 Restated
2022
£
24,459
108,972
133,431
(51,771)
14,095,906
88,684		 Restated
2022
£
6,870,166
7,232,764
46,705
-
1,262		 14,102,930
81,660
348,737
(71,424)		 1,262
-
14,482,447
62,852		 1,262
47,967 14,184,590
47,967 14,184,590
47,967
-		 14,184,590
-
47,967
47,967 14,184,590

Approved and authorised for issue on behalf of the Executive Body on 31 May 2024

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

A Taylor Chief Officer

C M Heybourn Member of the Executive Body Secretary

The notes on pages 13 to 25 form part of these financial statements.

Registered Company Number: 00032430

12

Church Extension Association (Incorporated) Statement of Cash Flows for the year ended 31 October 2023

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)		 2023
£
(388,828)
340,482
825,129
-
1,158,555
(1,845,124)
(94,898)
384,144
-
-
(4,684)
108,972
104,288
2023
£
539,803
111,847
166,158
(340,482)
(661,395)
(224,412)
19,653
(388,828)		 Restated
2022
£
(390,176)
285,632
-
-
677,012
(682,706)
75,712
355,650
-
-
(34,526)
143,498
108,972
2022
£
(1,119,793)
114,930
930,223
(285,632)
501
(4,965)
(25,440)
(390,176)

13

1 Accounting policies

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

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 and expenditure from the current economic challenge. 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 reliably and receipt is probable.

14

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

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 they become payable.

15

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

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 2023

2 Charitable activities

Bank charges & interest
Cards & Books
Chapel & Chaplaincy
Council tax, water charges &
insurance
Depreciation
Donations & Gifts
Donations -Solomon Islands
Education & Training
Funeral related expense
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
Governance
Publicity		 General
Fund
£
465
108
652

29,670
110,934
3,511
36,086
6,962
3,626
5,363
110
35,840
302
636
1,732
3,311
7,070
27,997
47,689
(4,512)
76,982
54,578
25,204
2,037
18,596
17,537
20,154
130
532,770		 Bristol
£
2
493
1,978
96
1,156
1,886
1,685
10,825
123,211
1,374
1,793
7,783
6,913
1,189
1,655
10,969
36
173,044		 West
Harrow
£
9
674
692
361
1,021
109
38
18,456
4,963
163
187
717
135		 Clevedon
£
30
2,170
125
540
505
12,771
236
905
11,791
7,405
576
2,690
3,754
43,498		 Relief
Relief
Fund
Fund
(Restricted)
£
£
62,292
10,000
62,292
10,000		 Total
2023
£
476
108
1,175
34,492
111,847
5,568
36,086
8,848
3,626
7,553
110
60,457
302
196,375
1,732
3,311
9,458
41,619
66,145
451
84,765
54,578
39,685
3,989
23,658
32,395
20,190
130
849,129		 Total
2022
£
404
-
798
31,422
114,930
6,786
10,038
11,576
4,791
5,503
158
57,837
418
135,850
1,625
3,805
8,197
40,274
45,070
501
71,229
132,282
25,849
4,383
23,274
31,339
16,446
75
27,525 784,860

17

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

3 Governance costs

Audit and accountancy charges
General expenses		 General
Fund
£
20,154
110
20,264		 Branch
Houses
£
36
-
36		 Total
2023
£
20,190
110
20,300		 Total
2022
£
16,446
157
16,603

4

Deficit of income over expenditure for the year

This is stated after charging the following:
Depreciation
Auditors' remuneration - audit services		 2023
£
111,751
20,154
131,905		 2022
£
114,930
16,410
131,340

5

Staff costs and trustees’ remuneration

Wages
Social security costs
Pension contributions		 2023
£
115,602
5,381
1,583
122,566		 2022
£
100,604
4,205
1,998
106,807

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 (2022: £nil).

18

6

7

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

Employees

Employees
The average number of employees during the year was as follows:
Domestic assistants
Administration		 2023
Number
3
2
5		 2022
Number
3
1
4

Tangible fixed assets

Cost
At 1 November 2022
Additions
Disposals
Transfers
At 31 October 2023
Depreciation
At 1 November 2022
Charge for the year
Disposals
At 31 October 2023
Net book value
At 31 October 2023
At 31 October 2022		 Motor
vehicles
£
49,103
-
(9,234)
-
39,869
42,644
1,599
(8,617)
35,626
4,243
6,459		 Freehold
land and
buildings
(see note 8)
£
7,443,751
-
(226,049)
-
7,217,702
608,626
107,773
(67,894)
648,505
6,569,197
6,835,125		 Furniture
And
Equipment
£
178,704
-
(33,890)
-
144,814
150,122
2,475
(28,927)
123,670
21,144
28,582		 Total
£
7,671,558
-
(269,173)
-
7,402,385
801,392
111,847
(105,438)
807,801
6,594,584
6,870,166

19

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

8 Freehold land and buildings

St Gabriel's, Clevedon
Land
St Gabriel's, Clevedon
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
180,397
2,175,000
2,175,000
2,458,800
215,975
7,217,702		 Accumulated
depreciation
£
-
6,262
25,256
-
261,000
291,576
64,411
648,505		 Net book
value
£
6,265
3
155,141
2,175,000
1,914,000
2,167,224
151,564
6,569,197

20

9 Investments

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

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		 Stapley
Bequest
Mrs Mary
Gutch's
Fund
Fund Total
2023
2023
2023
2023
£
£
£
£
6,932,908
47,375
129,803
7,110,086
-
1,845,124
-
-
1,845,124
(1,158,555)
-
-
(1,158,555)
159,319
-
-
159,319
(327,381)
(670)
(1,837)
(329,888)
-		 Restated
2022
£
8,034,615
682,706
(676,851)
6,614
(936,837)
(161)
7,451,415
46,705
127,966
7,626,086
221,987
-
-
221,987
7,673,402
46,705
127,966
7,848,073
7,514,283
47,375
129,803
7,691,461
221,987
-
-
221,987
7,736,270
47,375
129,803
7,913,448		 7,110,086
122,678
7,232,764
6,646,020
122,678
6,768,698

21

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

10 Debtors

Debtors
Other debtors
Prepayments
Accrued income		 2023
£
2,069
8,817
237,985
248,871		 2022
£
16,809
7,650
24,459

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		 2023
£
44,391
27,056
71,447		 2022
£
24,401
27,370
51,771

22

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

12 Funds

For the year ended 31 October 2023

General Fund
Stapley Bequest
Mrs Mary Gutch's Charity
Designated Funds:
Branch House
Relief Fund
Restricted Fund:
Relief fund
Total		 Balance at 1
November
2022
£
13,912,839
48,385
134,682
88,684
-
-
14,184,590		 Income
£
1,402,854
1,453
4,485
123,212
24,900
10,000
1,566,904		 Expenditure
£
(603,793)
(1,201)
(6,203)
(173,044)
(62,292)
(10,000)
(856,533)		 Gain/(Losses)
£
(168,061)
(670)
(1,837)
-
-
-
(170,568)		 Transfers
£
(61,392)
-
-
24,000
37,392
-
-		 Balance at 31
October 2023
£
14,482,447
47,967
131,127
62,852
-
-
14,724,393

For the year ended 31 October 2022

General Fund
Stapley Bequest
Mrs Mary Gutch's Charity
Designated Funds:
Branch House
Relief Fund
Restricted Fund:
Relief Fund
Total		 October 2021
£
15,009,413
53,107
146,046
104,615
-
7,544
15,320,725		 Income
£
488,115
1,588
4,035
96,394
10,525
-
600,657		 Expenditure
£
(610,113)
(1,940)
(3,427)
(133,925)
(29,754)
(11,068)
(790,227)		 Gain/(Losses)
£
(930,223)
(4,370)
(11,972)
-
-
-
(946,565)		 Transfers
£
(44,353)
21,600
19,229
3,524
-		 October 2022
£
13,912,839
48,385
134,682
88,684
-
-
14,184,590

Stapley Bequest

On 12/07/1961 the charitable company received the benefit of the assets, liabilities and undertaking of the Stapley Bequest an unincorporated charity of the same name. On the same date the charitable company became the sole trustee of the unincorporated charity which is now a linked charity under Charity Commission regulations. The unincorporated charity continues to hold a bank account and investment assets, held for the benefit of the charitable company. The fund is held to provide pensions for elderly ladies of limited means.

Mrs Mary Gutch's Charity

On 12/07/1961 the charitable company received the benefit of the assets, liabilities and undertaking of the Mrs. Mary Gutch's charity, Bequest of Eugenie Holt and Bequest of Alice Violet Hallam an unincorporated charity of the same name. On the same date the charitable company became the sole trustee of the unincorporated charity which is now a linked charity under Charity Commission regulations. The unincorporated charity continues to hold a bank account and investment assets, held for the benefit of the charitable company. The fund is held to provide a home for ladies in distressed or reduced circumstances.

23

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

12 Funds (Continued)

Designated funds

The designated funds relate to the activities of the Bristol branch house.

Relief fund

This fund is for the Sister's ministry in the financial relief of the poor, nearly all of it is for women and children family support.

Restricted fund

This fund is for the Sister's ministry in the specific financial relief of family support as directed by the donors.

Transfers between funds

Transfers between funds represents funds transferred from unrestricted funds to cover a deficit on restricted or designated funds.

13 Analysis of net assets between funds

For the year ended 31 October 2023

Tangible Fixed Assets
Investments
Net Current Assets		 General Funds
6,594,584
7,720,107
346,850
14,661,541		 Designated
Funds
-
-
62,852
62,852		 Restricted
Funds
-
-
-
-		 Balance at 31
October 2023
6,594,584
7,720,107
409,702
14,724,393

For the year ended 31 October 2022

Tangible Fixed Assets
Investments
Net Current Assets		 General Funds
6,870,166
7,232,764
(7,024)
14,095,906		 Designated
Funds
-
-
88,684
88,684		 Restricted
Funds
-
-
-
-		 Balance at 31
October 2022
6,870,166
7,232,764
81,660
14,184,590

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 £944,055.

24

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

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 transactions in the period under review that require disclosure in the financial statements. (2022: None)

17 Prior Year Adjustment

A prior year adjustment has been recognised to reflect the treatment of linked charities Stapley Bequest, Mrs. Mary Gutch's charity, Bequest of Eugenie Holt and Bequest of Alice Violet Hallam on a branch basis to combine the funds held by each linked charity.

The charity has reviewed the value of the assets, liabilities and undertakings of these linked charities and has considered that they are of a sufficiently material nature to include these in the financial statements.

Reconciliation of Balance Sheet and Reserves

Note
Fixed assets
Tangible fixed assets
7 & 8
Investments
11
Current assets
Debtors
10
Cash at bank and in hand
amounts
11
Net current assets
Total assets less current liabilities
Net Assets
Funds
Unrestricted funds
17
General fund
Designated funds
Restricted funds		 As previously
stated
6,870,166
7,055,586
13,925,752
24,459
103,083
127,542
(51,771)
75,771
14,001,523
14,001,523
13,912,839
88,684
14,001,523
-
14,001,523		 Prior year
adjustment
-
177,178
177,178
-
5,889
5,889
-
5,889
183,067
183,067
183,067
183,067
-
183,067		 As restated
6,870,166
7,232,764
14,102,930
24,459
108,972
133,431
(51,771)
81,660
14,184,590
14,184,590
14,095,906
88,684
14,184,590
-
14,184,590

25

Church Extension Association (Incorporated) Notes forming part of the financial statements (continued) for the year ended 31 October 2023

Statement of Financial Activities for the year ended 31 October 2022

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
November 2021
12
Balance carried forward at 31
October 2022
12		 Restated
General
Fund
(unrestricted)
£
18,712
10,566
9,590
1,000
783
162,297
290,790
493,738
615,480
615,480
(946,565)
(1,068,307)
(44,353)		 Bristol
(designated)
£
14,468
1,900
80,026
-
96,394
133,925
133,925
-
(37,531)
21,600
(15,931)
104,615
88,684		 Relief
Fund
(designated)
£
10,525
-
10,525
29,754
29,754
-
(19,229)
19,229
-
-
-		 Relief
Total
Fund
funds
(restricted)
2022
£
£
18,712
35,559
9,590
2,900
80,026
783
162,297
290,790
-
-
-
600,657
11,068
790,227
11,068
790,227
-
(946,565)
(11,068)
(1,136,135)
3,524
-
(1,112,660)
15,208,566
14,095,906		 (7,544)
(1,136,135)
7,544
15,320,725
-
14,184,590

26