Registered Charity No 204018 ALDERSHOT CHURCH OF ENGLAND SERVICES TRUST TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDING 31" DECEMBER 2021 Jones Avens Ltd Chartered Accountants & Registered Auditors Piper House 4 Dukes Court Bognor Road Chichester P019 8FX ALDERSHOT CHURCH OF ENGLAND SERVICES TRUST coTr¥rENTS Page Report Cover Contents Trust Information. offi￿rS & Advisors Trusteeg Report Statement of Tru5tees' Responsibilities Independent Examinerfs Report ststement of Financial Activities Balance Sheet io Notes to the Accounts Iltols ALDERSHOT CHURCH OF ENGLAND SERVICES TRUST TRUST INFORMATION AT 31" DECEMBER 2021 TRUSTEES Co-optative MrTim HR Milbank Lt Col Neville C N Harris Mrjohn E Jerome MBE Reverend John WA Harvey Mr Paul Williams Nominative Cdr Patrick T Mayfield RN Lt Col David Ruffle Cdr Mike Pearce RN Ex Offscio The Rev'd Mark Chadwick Clerk to Trustee5 Christine Thirkell CHARITY NUMBER 204018 OFFICE c/0 Christine Thirkell 12 New Odiham Road Alton Hants GU34 IQD BANKERS NATWEST Bank 30 Wellington Street Alder5hot Hants GUII IEB INVESfMENT MANAGERS Charles Stanley & Company Limited 55 Bishopsgate London EC2N 3AS INDEPENDENT EXAMINERS Jones Avens Ltd Chartered Accountants & Registered Auditors Piper House 4 Dukes Court Bognor Road Chichester P019 8FX ALDERSHOTCHURCH OF ENGLAND SERVICESTRUST Registered Charity No. 204018 TRUSTEES, REPORT FOR THE YEAR ENDING 31" DECEMBER 2021 OBJE￿5 OF THE CHARrrY The Trustees shall apply the clear income of the Charity for the purpose of fvrthering the religious and other charitable work of the Church of England amongst members and fomier members of the Armed Forces of the Crown. resident or serving in the area of benefit. and the dependants of such members, and the promotion of the efficiency of the Armed Forces of the Crown by provision of benefits not normally provided out of funds of the Exthequer in accordan￿ with The Scheme dated 2 June 1981, as lateramended. When planning activtties for the year. the Trustees have considered the Charty Commission's guidance on public benefit and. in particular, the 5pecTfic guidance on charities for the advancement of religion. MANAGEMEPIT OF THE CHARITY The administration of the Charity is carried out in accordan￿ with The Scheme as set out and issued by the Charity Commissioners signed and sealed on the second of June nineteen eighty one and by the Scheme varying the Scheme signed and sealed on the fifth day of December nineteen ninety four and the eighteenth day of April 2013. The body of Trustee5 shall consist of six Co-optative Trustees, three Nominative Trustees and one Ex-officio Trustee. The Co-optative Trustees shall be persons who through residence. occupation or employment or otherwise have special knowledge of the area of benefit and are appointed for a period of fNe years. The Nominative Tmstees shall be appointed by the Council of the Church of England Soldiers. Sailorf & Airmen's Clubs for a period of four years. The Ex-officio Trustee shall be selected by the Trustees as the serving Senior Chaplain Regional Command within the defined area of benefit. All Trustees are voluntary but are entitled to reimbursement of expenses incurred on the business of the Trust. Existing Trustees may nominate persons to fill a vacancy for a co￿ptative Trustee who will be invtted to sit in at a meeting and. if all agreed and approved. will be appointed by the Board of Trustees. Trustees who served during the year and at the time of approval were: Co-optattve Mr Tim HR Milbank Ichairmanl Lt Col Neville C N Harris Mrjohn Ejerome MBE Reverend John WA Harvey Mr Paul Williams Nominative Cdr Patrick T Mayfield RN Lt Col David Ruffle Cdr Mike Pear￿ RN Ex Officio The Rev'd Mark Chadwick ALDERSHOT CHURCH OF ENGIAND SERVICES TRUST FINANCIAL REVIEW The Trust is a direct successor to one founded in 1883. The original Trust established the Church of England Soldiers. and Sailorf Institute in Aldershot which provided off-duty servicemen with spiritual and recreational facilities includin8 accommodation. As a result of competition from more modern facilities and a redurtion in the size of the garrison. the Institute eventually closed tts doors in 1971. The substsntial freehold premises were sold the following year for £335,OCKJ and the net proceeds passed to the present day Trust. Thus, more than 136 years after tts foundation. the successor body is continuing to provide welfare and support, albeit in a different form, to the Armed Forces of the Crown. With the reduction in the size of the forces and the consequential change in their organisation and Structure, the Charitfs Area of Benefft has expanded over the years to cover eight counties. Investment Policy The Trusys investment objertive is to obtsin maximum income compatible with a medium low balanced level of risk. The level of risk applies to the portfolio as a whole rather than the individual stocks and shares. In furtherance of this objective the cu￿ent guidance. agreed with the investment managers, Charles Stanley. is to maintain a segregated portfolio with an investment split in the range of: Equities 55-75%, Fixed Interest 10-25%, Mixed Investments Nil-IO%. Alternatives Nil-7.5%. Commercial Property Nil-7.5%, Cash Nil-7.5%. The appointed investment managers manage the portfolio on a discretionary basis. The investment funds are subject to the Trustee Act 20C(J. The Trustees review the investment poliLy annually. Major Risks The Tmstees consider that the major risk% to the Trust are inflation and a significant fall in the stock market leading to a loss of income and devaluation of the portfolio of investments held. The portfolio is reviewed at each ordinary meeting of the Trustees and the investment managers provide reports and a briefing on the portfolio's perfomance. The portfolio is managed to maximise income whilst maintaining the portfolio value as far as possible in real tern15. The Trustees monitor the investment manager's guidance on the fixed interest investment, equities and cash. The investments cover a wide spread of industries and markets to minimise the impart of any of the market's inherent instabilities. The Trust relies solely on the income of the investment portfolio to provide the funds for making 8rants. The Trustee5 commit to grants based on the merits of the applications and the availability of funds as at the date the request 15 considered: they do not commit to making grants based upon future income projections. ALDERSHOT CHURCH OF ENGLAND SERVICES TRUST Grant Making Policy The Trust only considers grant applications through Service channels of HM Armed Forces or from registered charitsble organisations where any grant would meet the remit of the TMst. Grants are considered for specific projects, not for ongoing runnin8 costs or where other sources of fijnding should be available through HM Amed Forces. Applications for grants through Se￿iCe channels must be presented to the Tnjstees on one of the Trusvs application forms which must be completed and then endorsed by the commanding officer and the Unit chaplain. Applications which come from charitable organisations wwth links to the amied for￿$ must demonstrate that the benefits from receiving the grant will fft within the ethos and ￿mit of the Aldershot Church of England Servi￿5 Trust. The Trust may pledge a contribution toward5 larger projects, but before ￿leaSing it they will require confimiation that enough fvnds have a150 been raised elsewhere to allow the projert to proceed. The Trustees always require confimiation that fvnds have been recetved and expect to receive thank you letters once the project has been completed. Where projects are known to have been delayed. the Trustees will endeavour to keep in contart with the recipient to ensure that the project eventually prO￿ed5 and that the Trusys fvnds have been used for their specified purpose. Overview of Progress The Trustees were pleased to see that despite the continuing COVED pandemic, at the close of 2021 their investment portfolio had increased by almost 14% of its value compared to that at the start of the year and investment income for the year had increased by 16%. Due to the Covid pandemic requests for funds were redU￿d so the Trustees were able to fijlfill all the approved applications for grants and still have sufficient funds to make two further investments into their portfolio. At their meeting in July they agreed to transfer £30.CKK) and in Ortober it was agreed that £20.000 should be transferred into the portfolio. The Trustees remain concerned that the value of their portfolio will diminish with inflation over a period of time and try to transfer at the end of the financial year a contribution to capital out of spare income from its investments which had not been used for grants. As a general rule. Trustees feel that grants should tske priority over inflation-proofing capital and hoped that with the lifting of Covid restrictions more application5 for grants would be re￿ived. The portfolio started the year at a valuation of £1,535.703 and ended valued at £1.741,417 The investment managers have provided quarterly reports which the Trustees have reviewed at each of their board meetings. They have kept a close watch on the investment guidelines as the investment managers have moved to a greater weighting on equities while fixed interest returns are low. The investment managers also continue to invest ￿ndS into overseas markets, to dtversify the portfolio. Following a suitabiltty review with the investment managers. the Trustees reviewed the portfolio objectives and agreed the investment objective focu5 to generate income wlthout diminishing the capital value of the portfolio in real tenns. During 2021. the total investment income amounted to £56.534 {£48,3451. The income of the Trust was utilised in the payment of approved grants: four grant applications were approved totslling £3,222{£29.C￿) which represents 6% {60%1 of the TrusY5 unrestricted income. ALDERSHOT CHURCH OF ENGLAND SERVICES TRu¥r The administrntive cost of managing the Trust amounted to £17,675 1£17,392} including the honorarlum of £2,(JXI (current rate £4.(KKI pa. the artual amount paid reduced in 2021 because of Covid restrictions} and portfolio management fees of £13.8501£12,920). Reserves The reserves of the Trust amounted to £1.781.2641£1,576.063). Out of this £1.741,4171£1,535,703) form5 a restritted fund and the remainder £39,847 (£40,360) is unrestricted. The restricted fund is the value of the Trusys investment portfolio plus any balance in the capital account, i.e. the prO￿edS of disposals awaiting re-investment. which may not be distributed without prior reference to the Charity Commissioners. but which generates unrestricted income for distribution. srATEMENT OF TRUSTEES. RESPONSIBIUTIES The Trustees are required under the Charities Att 2011 to prepare financial statements for each financial year which give a true and fair view of the financial activities of the Charity and of its financial position at the end of that year. In preparing these financial statements the Trustees are required to: Select suitable accounting policies and apply them consistently. b. Make judgements and estimates that are reasonable and prudent. c. State whether the policies adopted are in accordance with the Statement of Recommended Prattice ISORPI 2018 for charities applying FRS102 and with applicable accounting standards subject to any material departures being disclosed and explained in the financial ststements. d. Prepare the financial statements on a "going concern" basis. unless it is inappropriate to assume that the Charity will continue to operate. Restrirt Investments in the normal way for Capital Funds of an endowment under the Trustee Act 1981. The Trustee5 are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial p051tion of the Charity and enable them to ensure that the financial statements comply with applicable law and regulations. They are responsible for safeguarding the assets of the Charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. We, the Trustees confirm the above have been applled and are true. APPROVAL. This report was approved by the Board of Trustees on.. . . signed on its ￿half by . and was Mrfim Milbank Chairman e£ ALDERSHOT CHURCH OF ENGLAND SERVICESTRusr INDEPENDEKf EXAMINER'S REpoirr TO THE TRusfEES OF ALDERSHOT CHURCH OF ENGLAND SERVICES TRUST I report to the trustees on my examination of the financial ststements of Aldershot Church of England SerVi￿s Trust (the chartty) for the year ended 31 December 2021. Re5ponsibilitles and basis of report As the trustees of the charity you are responsible for the preparation of the financial statements in accordance wrth the requirements of the Charities Act 2011 (the 2011 Artl. I report in respect of my examination of the charit¢s financial statements carried out under settion 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions gtven by the Charity Commission under section 14515)Ib) of the 2011 Art. Independent examinevs statement I have completed my examination. I confirni that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting ￿COrdS were not kept in respect of the charity as required by section 130 of the 2011 Act: or the financial statement5 do not accord wrth those records- or the financial statements do not compty 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 con￿m5 and have come acr055 no other matters in connection with the examination to which attention should be drdwn in this report in order to enable a proper under5tandin8 of the financial statements to be reached. Claire Norwood Bsc FCA ATII Dated.. ..31b.111 Jone5 Avens Ltd Piper House 4 Dukes Court Bognor Road Chichester West Sussex P019 8FX ALDERSHOT CHURCH OF ENGLAND SERVICESTRusr srATEMENf OF FINANaAL ACTIVITIES FOR THE YEAR ENDED 31° DECEMBER 2021 Total 2021 Total 2020 Notes Restricted Unrestricted Income from Investments Total Income 56,534 56.534 56,534 56,534 48,345 48,345 Expenditure on Raising Funds Charitable Activities 13.850 13.850 7,047 12,920 23,272 5t09 7,047 Total Expenditure 13,850 7,047 20,897 36,192 Net Gains/ {Lossesl on Investments 169.563 169.563 -17.377 Transfer Net income l expenditure & Net Movement of funds for the Year io 50,IJKJ 205,713 -50.000 -513 205,200 -5,224 Total Funds Brought Forward Total Funds Carried Fo￿ard 1,535.703 40.360 1.576.063 1,581.288 1.741.417 39.847 1.781.264 1,576,063 ALDERSHOTCHURCH OF ENGLAND SERVICES TRUST BALANCE SHEEf AS AT 31" DECEMBER 2021 Note5 Restricted Unrestricted 2021 2020 FIXED ASSErs Investments li 1.707.429 1,707,429 1,471,520 Investment Manager5, Capital Account 12 33.988 33,988 64,183 TOTAL 1,741.417 1.741,417 1,535,703 CURRENT ASSErs investment managers, Income Account Cash at Bank 13 2.763 2.763 2,585 38.592 38,592 39,234 LIABILITIES Creditors: Amounts falling due within one year 16 1.508 1.508 1,459 Net Current Assets 39.847 39,847 30.160 Net Assets 1,741,417 39.847 1.781.264 1,576,063 THE FUNDS OFTHE CHARITY 1.741,417 39,847 1.781,264 1.576.063 Approved by the Board of Trustee5 and signed on their behalf Mrfim Milbank Chairman ee io~ ALDERSHOT CHURCH OF ENGLAND SERVICES TRusr NOTES TO THE ACCOUM FOR THE YEAR ENDING 31" DECEMBER 2021 l. Accountin olicies Chari information TheA dershot Church of England Services Tnjst is an unincorpordted chartty registered number 204018. The registered office is 12 New Odiham Road, Alton. Hants, GU34 IQD. 1.1 Accounting convention These accounts have been prepared in accordance with "Accounting and Reporting by Charities. the Statement of Recommended Prdctice for charities applying the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and UK Generally Accepted Accounting Practice as it applies from l January 2019. The chartty is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterlin& which 15 the functional currency of the charity- Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared on the historical cost convention. modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 not to prepare a Statement of Cash Flows. 1.2 Going concern At the time of approving the accounts. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the trustees continue to adopt the goin8 concern basis of accounting in preparing the accounts. 1.3 IncominE resour Investment income plus associated tax recoverable is credtted to income on an accruals basis. using dates dividends are received and daily accrual for interest. 1.4 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. 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 accounts. 1.5 Resource5 expended Cost5 of generating funds comprise stockbrokerfs fees payable for the management of the Trust's investment portfolio which provided income for the charity. VAT is included which is not recoverable by the charity. Charitable expenditure comprises grants that are paid in accordance wtth the declared objectives of the charity. Govemance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include fees and costs linked to the strategic management of the charity. 1.6 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. 1.7 Flnancial instruments The charity has elected to apply the provisions of Sertion 11 'Basic Financial Instruments. and Section 12 '0ther Financial Instruments Is5ue5' of FRS 102 to all of its financial instmments. Financial instruments are reco to the contractual provisions o nised in the charrty'5 balance sheet when the charity becomes party e instrument. li- ALDERSHOT CHURCH OF ENGLAND SERVICESTRUST Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there 15 a legally enforceable right to set off the reco to settle on a net basis or to realise the asset and settle the nised amounts and there is an intention lability simultaneously. Bosicfinanciala55ets Basic financial assets. which include debtors and cash and bank balances, are initially measured at transaction price including transattion costs and are subsequently carried at amortised cost using the effertive 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 re￿Ivable wtthin one year are not amortised. Basicfinonciol liubilities Basic financial liabilities, including creditors and bonk loans are initially recognised at transaction pnce unle5S the arrangement constitutes a financing transartion, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequentty carried at amortised cost, using the effective interest rdte method. Trade credttors are obligations to pay for Eood5 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