Register&l charity number: 213252 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY One hundred and thity fourth annual report and fmancial statements Year ended 31 December 2021 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Contents Pages Reference and admiri￿ative i￿O￿nItiOn Cl￿Ar'S re￿rt Report of the Council 7-15 Independent &udfitor'8 report 16-19 Consolldat¢d $tstem¢nt of fiNn¢iAI activtiies 20 BalAnee sheets 21 Consolidatsd statement of e*sh flows 22 Notes to the Itnancial statemeDts 23-45 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY 27 Creat Smith StreeL London, SWIP 3AZ The Council {Trustees), Officers, Senior Staff and Advisors Reference and administrative information The Council (Trustees) Elected member8 Nominated member5 Canon Dr Christina Baxter CBE. Chalr of ihe Keith Cawdron Council Dr Justine Allain Chapman H￿Ve[ Rees-Jones, Treaswer and Deputy Choip David Kemp of the Council C￿opted members Stephen Barney (appointed 18 November 2021) James Bryer (appointed 24 Febtiw 2022) Andrew Penny Chrislophcr Smith CBE (retired 18 November 2021) Officers and senior staff Committees Treasurer Hywel R¢es-Jones Audlt Commlttee Stephen East, Chwr John Hughesdon Andrew Penny Secretarylchief Executive oificer St¢phanie Maur¢l IDvestment Committee Head of Finance and Deputy Chief Executive Hywel Rees-joncs, Chair Officer John Booth (retired 22 July 2021) Adrian Smith T Clark (appointed 24 Fcbnw 2022) David Kemp Andrew Penny Head of Facilities Hugh All¢o¢k-Gr¢¢n THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY 27 Great Smith Street, London, SWIP 3AZ The Council (frustees), Officers, Senior Staff and Advisors Reference and administrative information (continued) Professional advisors IndepeDdent auditor Buzzacolt LLP 130 Wood Street, London, EC2V 6DL Church House Conference Centre Limited Non-Executive Direetors Peter Thackwray OBE, Chair Mary Burley Dr Michaela Jordan Hywel Ree8-Jones Principal bankers Coults & Company 440 Stranl London. WC2R OQS Executive Dir¢¢tors Stephanie Maurel Adrian Smith Nationwide Building Society Kings Park Road, Northarnpt￿ NN3 6NW Solicitors BDB Pitman LLP One Bartholomew Close, IA)nd0￿ ECIA 7BL Investment Manxgers Cazenove Capital Management Limited l London Wall Pla¢¢, Londo￿ EC2Y SAU THE CORPORATION OF THE CHURCH HOUSE IIND ITS SUBSIDIARY Chair's report to the members of The Corporation of the Church House The context in which the Corwration worked in 2021 ranained challenging: the impact of the pandemic on both business and working livcs continued into 2021 bul it also offered an opportunity to look afr¢sh at th¢ CotporatlOD and the Conference Centre as new patterns of life emerg￿ in England and its Churches. Following the appointrnent of a new CEO in September 2020, there ha8 been a review of all areas of activity. Whilst both the Corporation and the Conference Centre have made steady progress, Trustees, Non-Executive Directors and staff have worked on new fiv¢-year strdtegies for both entities. These focus on the vision, mission, and values of both organisations. T￿SteeS are supporting staff to ensurc that aIl dcci8ions are taken with consideration for the overarching vision of"P08itivcly impacting communities by providing a fitting Westminst¢r hub for the Church of England and supp)rting its mission" The Corporation remains in a strong finaTLcial position. As expected, the Colporntion's operating activities reflecting the Trustccs, commitmcnt to a further £1.752m grant to the Archbishops. Council for Safeguarding, resulted in a deficit for the year. Th¢ Corporation bcnefitted from th¢ performance of its invcstmcnl portfolio in 2021 which returned increased investment income of £428,615 and a net gain in excess of £2m. As a result, after accounting forth¢ £209,152 loss reporto by the Conference Centre for the year, total reseryes increased by £1.040.715 to £24,459.733. The Co4)oration has retained all of its tenants. new leases are in place for the sevcn commercial tenants and two residential flats. With the downsizing in January 2021 of the space occupied by botb the National Church Institutions and the Diocese in Europe, a srnall amount of space became vacant within Church House. Whilst decisions w¢r¢ being taken regarding the future refurbishment of the building, some of this spacc was relcl on short leases al preferential rates lo small charities and start- up organisations supporting their mission by giving them a foothold in London. For example, the charity Sui¢id¢ and Co. and a start-up v¢gan r¢ady m￿1 ¢(￿￿pany. Church Housc incurred lower routine operating costs for the building in 2021 as a rcsult of continued reduced usage by tenanls, Conference Centre clienls and other visitors. The building was ruTming at under IOO/• of PTe-pandemic capacity throughout much of 2021. One large piece of work that was completed in the summer of 2021 was the delayed external redecoration of the building. Pr¢viously this has been undertaken ￿ery five year5 however, with the pandemic in 2020. this was poStp(￿ed by Iwelvc months. The whole of the outside of Church Hous¢ has been inspected, repaired, clcaned, and prOt￿ted for the next five or so years. Following advice, plaDS ar¢ b¢ing ¢onsidered to change the future pattern of this work to mainlain the current five-year timetable for the two flanks mogt impacted by the weather but leaving a slightly longer period for the other two l]anks. The maintenance of the building has progressed whilst the building has remained quiel. A fvll Security Review has also taken place along with an independent Health and Safety audit. An audil of the website and IT ftLnctions was undertaken by the National Church Institution's (NCIS) internal audit team, along with a review of the Conference Centre Processes. This is part of an ongoing programme with a focus on two internal audits p¢r y¢ar. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Chair's report to the members of The CorporatRon of the Church House (continued) For the future, there are positive challenges. Wilh Ihe announcement by Gencral Synod that Church of England buildings should go Ca￿on neutral by 2030. The Corporation of the Church House has put into place a plan lo move as close to tbis goal as practi¢abl¢ and financially possible given that Church House is a Grnde Il listed building. This will includc rcducing consumption of fuel as well as ensuring that fuel used is clean. A small change that has made a large difference is the replacement of all standard urinals with non-flush water-saving urinals" the temperature of the water in the taps bas also been reviewed and controlled. The Conference Centrc found 2021 vcry difficult financially, but the new strat¢gy ttsulted in a flourishing of the work done by Ihe team. Innovalivc evcnls were hosted and as well as being shortlisled to be a Nightingale Court, the Confcrcncc Ccntrc has accommodated a Covid Testing Centre since March 2020 and held two public tribunals The Uygur Tribunal and the Iran International People's Tribunal (Aban Tribunal). Both events gave voice to gmups nonnally unheard. The Conferen¢¢ CetLtre was also the homc of the Daniel Morgau Enquiry ConclusiorLS. Although the Cotyoralion made a £2m loan facility available lo the Conferencc Centre in 2020, only £1 m of this had been drawn down by the end of 2021, when the faLility expired and was replaced with a new £51)0.000 facility. The loss reported for the year of £209,152 meant that no covenant was payable lo the Corporation, but a £909,314 contribution was made to the Corporation through the payment of r¢n¢ and s¢rvi¢e ¢harge. There was relative stability in the Tn￿tee body, although Chris Smith reached the end of his tem] as a co-opted trustee at the November meeting. Chris brought significant expertise to the Council and contributed ConStn￿liVe1Y to all our meetings. Wc thank hirn for his servicc to Church House. Trustces cngagcd Bridgcwatcr Leada7hip Advisory to assist with the search for specific expertise to St￿ngthen the Council. As a resuli, Stephen Barney was appointed to th¢ Council as a co-opted member in November brings a wealth of commercial experience having Chaired the LeiLesler Diocesan Board of Finance and overseen the purchase and development of St Martin's House Conference Centre and the nearby Lodge hotel. In ord¢r lo support thc propcty expertise of the Council, James Bryer was fonnally co-opted to thc Council in Fcbruary 2022. James comcs highly recommended and works in commercial pmpety for HP4 Investment LLP. A vacancy arose for an independent m¢mber to join the Investment Comrnitt¢e following the r¢tirwi¢nt of John Booth in July 2021. We were very fortunate that T Clark, who is Head of Public Equities Investments for the Church Commissioners. took up the role in Fcbruary 2022 and thry havc alrrady proffered valuable advio¢. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Chair's report to the members of The Corporation of the Church House (continued) 2021 can be characteris￿, at least in part, by a focus on a full govemance review. The Corporation is working towards the Charity Govemance Code and overth¢ year, all policies and proccdures were considcred and updated where rL￿eSSary by the Fxccutivc and Trustees. The Ternis of Reference For the Council, Board and supporting committccs werc also reviewed and updated. Trustees held an externally facilitated risk appetite workshop in March 2021 and. working In small groups ovcr thc rest of the year, defined the risk appetite of the Council for the key risks that the Cotyorntion faces. This is now a solid framework within which the Executivc and Trustees can work. After the dramatic changcs in the environment within which Ihc Corporation operates, it is now rcady to face a strong future. Plans are being finalised for the intcrnal rcfurbishment of Church Housc, thc Conference Centre expects lo return to making a profit in 2022 and a £1.752m grant will bc paid to the Archbishops, Council to support the mission of the Church of England. The Corporation of lh¢ Chll￿h House is Confident in wntinuing lo work towards achicving ils mission and deliv¢ring on the strategy in place. My tenn of orrice ceases at the AGM, as I have now reached 75. 1 ow¢ an immense debt of grdtitude to all my fellow Trustces whose wisdom and conunitrnent have been inspirational. It has been a pleasure to work alongside a dedicalcd and cffeclivc staff lcd most ably by first Chris Palmer and thcn Stcphanic Maurcl - whosc rcsponse to the pandemic has been outstanding. All the staff of the Corporation and the Conference Centre have been unfailingly helpful and resourceful. I would also like lo thank all our professional advisors and those who have voluntarily assisted in many different ways. J shall take a keen interest in the future of Church Housc which will, I believe, continue to offer exceptional accommodation to thc Ncls and its othcr tenants, as wcll as husbanding A precious resource to enable grants to be made lo the Ar¢hbishops' Council so as to relieve the financial burdcn on parishes which are rightly concemed lo invest in the mission of God in our land. There is a fine balan¢e to be struck between the simpler following of Jesus to which the Church of England aspires and the wise maximising of nei income from a building which can support the wider mission. We have been wrestling with the issues that this poses, and will nced to continue to do so for the next decade at l¢as¢. I wish my sucttssor every blessing as they tackle that conundnun. -th Canoll Dr Christina Baxter CBE Chair THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House Thc Council presents its annual rq)ort and audited consolidated financial slatements for the year endcd 31 Dcccmbcr 2021. The financial statements have been prepared in accordance with the accounting policies set out on pagcs 23 10 29 of Ihc attached financial statcments and comply with th¢ charity's Royal Chat1er, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practicc applicable to charitics prq)aring thcir financial statements in accordance wilh thc Financial Reporting Standard applicablc in thc United Kingdom and Republic of Ireland (FRS 102). Objects and activities The primary object of The Corywrdtion, as laid down in the Royal Chgrter, is to own gnd maintain a building - Church House - for thc use of the National Church Institutions of the CFLur¢h of England (NCI8). Following amen(hnent of the Royal Charter in February 2018. The Co4)ofdtion is now al80 pem]itled to award grants for the benefit of the NCIS. The Corpordlion may manage such busine8s as il thinks fit and eX￿lent to undertake foT the promots'on of the objects of The Corporntion. The Cory)oration aims to provide office and meeting space for the Ncls at a cost below the market rent for the area. the annual rent charged in the year represents a substantial saving whcn comparcd to the Costs of equivalent commercial property. The rent refl￿tS an appropriate annual share of the governance costs and provides fL￿d8 to be used towards the anticipated costs of ￿tUre refurbishment and improvement of the building. The Corpordtion seeks to generdte income from the operdtion of its wholly owned commercial subsidiary. chU￿h Hous¢ Conference Centre Limited, which markets ihe spar¢ ¢apa¢iLy when the largc mccting rooms in th¢ building (whosc listed status prccludcs radical alteration), are not required for use by the the General Syn(yd. The conference Centre clients includc con]mcrcial companieb, charities. church organisations, govemm¢nt bL)dies, irade associations and research organisalions. Any taxable profit crealed by the Con(￿ence Centre is usually covenanted directly to The Corporation. Building on the decision reached by the Council in 2017 to provide financial support to Ihc National Church Institutions through the award of grants, and following the necessary amendment io the Royal Charter to pem]it such activity, the Council, with support from the senior management ieam and extemal advisors, introduced a grant-making policy in 2018. Complementing the four grants totalling a combined £5,756,000 awarded between 2018 and 2020, the Council considered ati application from the National Church InstLtutions 10 #Xtend Ihc grant for safcguarding for a fourth ycar and, ultimatcly? approved the award of a grant for £1,752,000 for paymcnt in 2022. The Corporation's operdtional objectives during the year under review have been lo maintain the sccurity of the building and to ensurc Church House conlinucd to offcr a safe and availablc workspace for the benefit of the National Church Insiitutions fulfilling all Government guidance relating to the COVID_19 pandemie. Additionally, the cyclical extemal redecordtion of the building was planned and completed oll time and within budget. In revi¢wing its aims And obj¢ctivcs and in planning its fuiure activilies we confinn The Corporation has complied with the Charily Commission's general guidance on public benefit: 'Charities and Public Benefit,. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Revlew of achlevements and performance for 2021 Operationalperfovmanee The National Church Institutions remain the principal tenants of the building. All oifice space at Church House remained open throughout the year, although actual usage was, and continues to b4 significantly lower as a result of the COVID-19 pandcmic. We also welcomed fewer visitors at Church House in 2021 the events space availablc for hire and marketed by Churcb House Conf¢ren¢e Centr¢ was c105¢d or Operat￿ for much of thc ytrar at rcduccd capacity, in a¢cordance with the government guidance issued in response to the pandemic. All facilities and services w¢r¢ maintained at appropriate levels and op¢rated well throughout the year. Grant-makingpoli¢y The Cojporalion will from time to time accept grant applieations from the National Church Institutions depffldent upon the financial perfornmice of The Corporation. Financial review The con801idated statement of financial activitics for the year is set out on page 20. A summary of the rcsults and of the work of The Coox)ration is sel out below. The charity's principal sources of in￿rne are rent, investment income and C0venAnt￿ profit from its trading subsidiary> Church House Conference Centre Limited. The group's expenditure during the year exceeded income by £965,047 (2020: £2,076,148) before gains on investments and other recognised gains. The level of net expenditure reflects the Council's continued support of the work of tbe Church of England through the award of a further grant to bc used in the area of safeguarding. A grant of £1,752,000 has been recognised in Ihc year (2020.. grant of £1,752,000 for safeguarding) although actual payments will k made throughout 2022. After taking into account the net cxpenditure for 2021, together with recognised gains. the ￿0up'S toiaL funds Increas￿ by £1,040.715 to £24.459,733 (2020.. decreased by £l,868.585 to £23,419.018). Church House Conference Cenlre Limiled The Conference Centre is the wholly owned subsidiary of The CO￿OrdI10n and carries out trading activities forthe benefit of The Cory)oralion, paying rent and service charge which in 2021 amounted to £909.314 (2020: £974.901). The impart of the COVID pandemic continued lo affect trnding conditions throughout 2021.Turnov¢r for the year of £2,276,848 (2020.. £1,006,676) represented a 450/0 reduction on the level generated in 2019- the last full-year of unintemipted trading PriOT to the onset of the pandemic- but together with cost savings did enable th¢ Company to outperform ils 2021 budget and r¢port a lower than fOr￿aSt loss. Thc Confcrfflce Centre has been able to limit the amount of fInar￿la1 support requested from The Corporation under the ternis of thc £2m loan facility madc available in 2020 to £1 m. For 2021, the loss on ordinary activities for the year was £209,152 (2020: loss £1.422.498) before taxation of £Nil (2020.. £11,940 accrued recoverable t￿tion) and transfers under deoj of coveJ)ant for the current y¢ar of £Nil (2020.. £Nil). As the Company reported a taxable loss for the ycar cndcd 31 Decemb￿ 2021, no amount is payable to The Corporation under the tern)s of the Deed of Covenant. A sun]mary of the trading results of the Conference Centre is showrt in note 17 to thc finat￿tal statements. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBStDIARY 11 Report of the Council of The Corporation of the Church House (continued) Review of achievements Y4nd performance for 2021 (continued) InvesDnen¢policy The Council has adopted A long-terni and medium-risk policy to achieve a balance of income and capital growth from its investments. As pcrniitted by The Corporation's Royal CEthrtcr, the Council has given its irLvestment matLagers discretion lo manage the w)rtfolio within all agreed risk profile. The put￿S¢ of Thc Corporation's investments is to provide Ihe necessary stability and financiat backing to enable periodic improvement and refurbishment of Chur¢h Hous¢. Tu achieve tbis, it is the intention lo manage the portfolio in such a way that the value of thc investments more than matches inAation over the longer tcrni. Givcn thc invcstmcnt horizon, il has been decided in consultation with the investment managers that the portfolio should consist substantially of equities both in the UK and overseas. In 2021 The Council. in conjunction with the Investrnent Cornmittee, agreed that the investment portfolio should be used to provide the funds required forthe rethrbishment project at Church House plantKd for 2022-2023. Consequently, since the year-end, the invcstn]cnt managers have been instrLTrCted to scizc opportunitics to generate £IOm cash in relation to the total anti¢ipa¢ed £16m ashflow requirement for the project. It is the Council's policy to take note of the guidance of the Church of EnglarLd's Ethical Inveslment Advisory Group. Investhientperformnnce Perfornianc¢ of the inv¢slments is measured against a bespoke benchn￿rk. Thc benchmark is based on the agreed ass¢1 allocation.. 55 /• to relat¢ to the FfsE All Share index, 200/fy to the FfsE World index (excluding UK), 20 /¢J lo the FfsE Government All Stocks index and 50/0 to SONIA (Stcrling Ovcrnight Index Average). The Corporation's investments delivered an overall relum of plus 10.9% (2020: plus 0.89%) compared with the bespok¢ benchmark of plus 13.3 /0 (2020.. minus 0.30/0). UK equitics returned plus 18.8 % (2020- minus 8.8 /D) against the FfsE All Share index return of plus 18.30/0 (2020: minus 9.90/0), overseas equities returning plus I1.3Q/o (2020.. plus 20.90/0) against the FTSE World index (excluding UK) return of plus 22.2% (2020.. plus 14.2 /e}. The overall bond allocalion retun￿1 plus 0.1 ts/0 (2020.. plus 2.30/0) which compwes lo the FTSE All Stock Gilts index return of minus 5.20/0 (2020: plus 8.30/0). Wkn'lst the perfomiance of the portfolio was marginally behind the benchmark for the year, the Coun¢il remains satisfied with the longer-terni pcrforrrLance and p)sitioning of the investment portfolio. Th¢ y¢ar of 2021 was dominatcd by three key narratives. The r￿UrgenCe of Covid wnc¢rns with the spread of new variants, central banks. rcaLtion to high infialion figures, and concerns over Chinese growthcentring around thc growing propcty sectorcrisis. Whilst this resulted in heighten&l volatility during the period, global equity ll]arkels proved re5iliat which was b¢ncficial lo the Charity's investment portfolio which ha8 around 77% allocated to this asset class. While the underweight allocation to UK listcd cguitics was a tLcgative ¢ompar¢d to the b¢nehmark - the portfolio benefitted from its allocations lo Ihemore eLonomically sensitive parts of the equity markrt combined with a core allocation io US listed equities which had another excellent year of perfonnanc¢. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Review of achievements and perfomance for 2021 (eontlnued) InvestmenÉperforniance (continued) The Corporation withdr¢w £1.500,(K)0 (2020.. £49,334) from the portfolio to provide additional working capital in the year. No capital (2020-. none) was transferred to Cazcnove Capital fur investment during the year. The market value of lisied investmerLts at 31 December. excluding cash held with the investment rnanagcr5, wa5 £21.041,126 (2020: £19,475,870), an increase of £1,565,256 (2020.. £803,141 decrease) when compared to the position al the end of 2020. Unrealised gains of £1.921,831 (2020.. £407.425 unr¢alis¢d gains) are refl￿ted in the market value as at 31 December. Realised gains of £80.970 (2020: £405,862 realised losses) resulted from the sale of inveslm¢nls during the year. The Council, upon ihe r￿0MmendatIon of the Investment Committee, previously agreed that the investment manager5 should hold a higher balancc of cash to ensure funds would be availablc to meel the different profiles of plann￿ capital and grant expenditur¢ under discussion. As outlined above Thc Corporation will require additional working capital in 2022 to fund thc planned refurblsh￿ent project at Church House, in addition to other capital and grant expenditure. Conscqucntly, the value of cash held by the investment managers at 31 Deccmber 2021 wa8 £932,903 (2020.. £1,694.391). lieserves The freejexpelldable reserves of The Cory>oration, predominantly represented by its iiivestment portfolio, are held to meet the primary charitable objective of The Conyoralion which is to own and maintain the building callcd Church Housc for the use of thc National Church Institutions of the Church of England. Of the group's total funds at 31 December 2021 amounting 10 £24,459,733 {2020'. £23,419,018), the free reserves amounted to £1,697,906 (2020: £1,907,058). Free reserves ¢onsist of Ihe g¢n¢ral fund5, including th¢ non-chaTitablc tradin¥ fi￿d5 bul cxcluding the pension reserve. When undertaking the annual review of free reserves. the Council determined that the present level is sufficicnt to meet operational needs and to provide Contingency funds. The impact of COVID-19 on The Corporation and its subsidiary ha5 been considered in detail by the Executive and Council and the view in respecl to the adquacy of frcc rcscryes has not changed. The Council approvcd a transfer to the designated refurbishment fund to increase the balance at 31 Decanbcr 2021 to £10,000,000 (2020.. £6,405,011). The fund will be used to meet the anti¢ipat¢d st8 of th¢ two-phase project to refurbish Church House with works commencing in June 2022 and lo bc completed in early 2023. It has been agreed subsequently to upand the scope of the project and the lolal eslimalcd cost, including contingency allowances of £2.5m, has increascd from £9.6m to £16m. Further transfcrs will bc Tnade to thc dcsignalcd rcfurbishment ￿lld during 2022 and 2023 to meet the costs of the project. io THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Review of ydchievements g4nd performance for 2021 (Continued) Reserves (contlnued) The grant of £1,752,000 {2020'. £1,752,000) awarded to the Archbishops, Council to support the work of the Church of England National Safeguarding Team has been funded from the designated grani-making fund. A transfer was made from the grant-making fund of £127,634 (2020.. £2,I24,354 transfer lo the grant-making ￿nd) to contribute funds for the refiwbishment fvnd as descrlbed above. The balan¢¢ of the grdnt-making fimd ai 31 December 2021 was therefore £10,125,617 (2020.. £12.005,251). Future plans The Corporation's primary obJ￿tive remains to plan to an efficient otTice buildillg for the National Church Institutions of the Church of England and examin¢ its tunning costs with a view to saving expenditure wherever possible. Following the National ChU￿h Institutions decision lo rcdu¢¢ their footprint al Church House, the Council commissioned an independent external review of the building. This identified the options available to improve olYi¢e aw)mmodation for the continued use of the Ncls and for the r¢fiJrbishm¢nl of spa¢¢ that will be va¢at¢d with a view to generating in¢r¢as¢d revenue from Mture commercial letting. The Cowicil has given ￿re￿I consideration to the options presented and are confLdent this will secure the long-tmn viabllily of Chuxh House and will, ultimately, provide addTrtional hmds Ihat can be used to support the mission of the Church of England through increased grant-making. The Council has approved the £16m estimated costs for the project lo refurbish Church House. The process of identifying the changes that will have to be implemented ai ChurchHouse to achieve the aim of operating a ¢arbon z¢ro building no later than 2030 wmmew¢d in 2020. This work has continued and, where practicable, will be inco￿orated inlo the planned refurbishment works. For changcs nccdcd thai will not bc included as part of thc projcct, thc impacl of thc works will bc assessed, before a costed plan and timeline is produced. The Council expects to receive furthcr applications for grdnts from the National Church Institutions. The suitability of all grant applications for ￿ndIng will be wnsidered on the basis of the benefits they will deliver acttTrss the Church and for the wider public. Once suilabiliiy has been established, the appropriate level of any funding will be detcrniinsj with reference to The Corporation's own financial position and general economic conditions. THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Slructhre? governance, management and external professional advisors The Corporation of the Church House ("TheCorporation") was established in 1888 by Royal Charter (charity rcgistration number 213252) and its principal office is 27 Great Srnith Street, Londo SWIP 3AZ. During the year The Corporation was gyoverned by a Royal Charter dated 22 November 21X)2, which was last amendeA on 8 February 2018. The mosl recent amendnient perniits ￿attts to be awarded for the benefit of the National Church Institutions of the Church of England. It has a wholly owned, commercial trading subsidiaryy Church House Conference Centre Limited (company reglstration number 02869220 (England and Wales)). The company's trading name is Church House Westminster and its principal activity is that of tu1￿]ng a conference cenlre. The Coun¢il of the Corporation comprises of up to nine members. Each member is appointed for an initial terni of five years, renewable for a fityther terni of the same length. Following resolutions carried at the 2008 Annual General Meeting and the approval of the Privy Council and the Charity commissio￿ two mernbers are el￿ted from amongyst the members of Th¢ Corporation. who are mernbers of the General Synod and other individuals, by the members of The Corporation. three members are nominated by the Appointments cOn￿nittee of the Church of England and four members are co-opted by the Council. CurrentSythere is onevacancy for a co-opted rnember. Every member of the Council must be and continue to bc a mcmbcr of the Church of England. Thc namcs of the members of the Council at 31 D￿ernber 2021 (and up to the date of this report) are given on page 2. New Council members are inducted into the Wo￿l￿gS of The CoryK)ration and its subsidiary, including Council policy and procedures, at an itLitial rnecting with the Secretary and also receive a opy of the Charity Commission guidance on the roles and responsibilities of trustees. Mcmbers of the Council, as The Corporalion's trustees, are legally responsibl¢ for the overall Lnanagement and control of The Corporation and its subsidi&ry and the Council meets at least four times a year. The Council appoints the senior staff of The Corporation who, in turn, are responsible for its day lo day running. The Council is rcsponsiblc for the approval of the annual budget and cash flow forecasts and is respon5iblc for thc prcparation of the finallcial statements of The Corpordtion and its subsidiary. It also monitors the financial and opcrational activities of Thc Corporation. The Council has an Audit Committee with an independent Chair, one independent member and one member co-opted from the Council. Thc Commitlcc mcets at Icast twice a year and, inter alia, monitors The Corporation's extemal audit attangements and risk management system5. The spring Meeting is principally concerned with the annual audit including a confidential meeting with the auditor, while the autumn meeting ¢on¢entrales on governanc¢, personnel n￿tterS and the scrutiny of risk managcmcnt. The Committee held two meetings durlng the year under review. Details of The co￿OratIon,S professional advisors arc given on page 3. The Cotyoration maintains a rclationship and regular dialogue with its advlsors in addition to O￿ainIng expert advice and assurance when rcquircd. 12 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (contlnued) Struclupe) governance, monagement and Ltrernalprofesfional advisors (conginued) Risk management The Council has idcnlificd and reviewed the major risks to which The Corporation and ils subsidiary are exposed, in particular those related to their operations smd finance with particular reference to the ongoing challcnges posed by COVID-19, and is satisfied that syslems are in place to mitigate The Corporation's exposure to those major ri8k8. The prinwry risks faced by The Corpordtion and Church House Conference Centre Limited are those that would significantly disrupt the availability and operation of the building. The Corwration and Conference Centre have comprehensive policies of insurance, reviewed annually, that provide finan¢ial ¢ompeDsation for many such occurrellces althougM along with many other busincsscs, w¢ identified that our insurance wver did not extend to provide cover for the economic impact of the COVID-19 pandemic. Above all, The Cotyoration has a business continuity plan that did, and will, enable it to maintain and r￿0Ver its operations in the event of significant diS￿ption. Any significant reduction in the v81ue of The Corporation's investment portfolio could pla¢¢ at risk The Coryorntion's ability to ￿nd improvements lo Church House. This risk is managed through the selling of an appropriate Investmenl Policy (se¢ thc Investment policy section of the Rq)ort of the Council on page 9 for more infonT)ation) and continuous review of investment perforniance by the Investment Committee (see pages 9 and 10 for more infonnation). In January 2022, to mitigate against potential n￿rket volatility, the Investment Managers were instructed to commence tTrLe sale of holdings to generate the capital to be used to fund the re￿rbIshmcnt project to be cornmenced in Junc 2022. Notwithstanding thc potential impact arising from the availability and operation of Church House bcing significantly disrupted as outlined above, the most significant financial risk to which Church House Conference Centre Limited is exposed is the impaLt of general economic and wider conditions affecting their existing and potential client base. Like many others in the hospitality sector, whilst the level of busIn￿S has increas¢d il has not yet r¢tLllned to pre-pandemic levels and as Such the Company continues lo be affected by the longer-temi impact of the COVID-19 pandemic. To mitigate the financial impact of COVID-19 the Co4K>ralion agreed to the request from the Board of dircctors to replace the £500,000 loan faciliiy first made available in Febrnary 2011 with an increased facility of £2.000,000. Th¢ new facility was put in pl￿e in S¢pt¢mber 2020 and was available to be drawn down, in accordance with agreed tern￿. until the end of 2021. The Council has a£r¢ed to provide a fillther £500,000 loan facility fmm l January 2022 to provide the Company with further fu￿nClaI support. should it bc nccdcd, for the pcriod lo 31 Dcccfflbcr 2031. Thc Board of directors of Church House Conference Centre Limited continue ¢0 monitor the CU￿£nI rinancial position, trading conditions and future prospects monthly. The Board tneets quarterly> or more frequently if rLNuired, and a summary of the Company's trading and financial position is provided for consid¢ration at each Council m¢¢tiDg (sc¢ not¢ 16). 13 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Structure) governallce, managemenÉ and exlepllalppofessional advisops (conlinued) Key managemen¢personnel In addition to Thc Co￿OrdtiOn.S unremunerated Council members, the Senior Management Team are defined as key personnel. The Council has del¢galed r¢sponsibility and authority for managing thc day-to-day activities of Thc Coryioration and, throughthc Board of directors of Church House Conference Centrc Limited, to thc S¢nior Managcment Team which wnsi5ts of th¢ Secretary. Head of Finw)¢e and Head of Fa¢iliti¢s, In 2021 the Council agreed a unifonn pe¥¢entagc cost-of-living pay award for all Staff. No additional bonus or other incentive sch¢mes apply to the Senior Management Team. No Memb￿ of the Council ￿ceiVed any remLLneration from eitherThe Corporation or ChurchHouse Conference Centre Limit¢d. Fmndraislng The Corporation does not actively engage in fundraising activities and does not employ a professional fimdraiser or commercial participalor. No complaints in respect to fundraising activity w¢r¢ r¢￿1Ved by The Corporation during the year. Statement of the Councilys responsibilitie8 "rhe Council is rcsponsiblc for prq)aring thc Report of thc Councifi and thc financial statemcnts An accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Acccpted Accounting Practice). Th¢ law applicable to charitics in England and Wales requires the Council to prcparc financia! statemcnts for cach financial year which give a t￿e and fair vicw of the statc of thc affairs of the group and the charity and of the income and expenditure of th¢ charity and the group for that ycar. In preparing these fjnancial statements, th¢ Council is requir￿ to: select suitable accounting polici￿ and then apply them consistently. obscrve Ihc mcthods and principles of Accounting and Reporting by Charities: Statement of Reeomrnended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Rcpublic of Ireland (FRS 102). make judgments and estimates that are r¢a$onabl¢ and pnJdent', slate whetlier applicable United Kingdom Accounting Stsndards have been followed, subject to any malcrial dq)orturcs discloscd and ￿p1a1￿cd in th¢ financial slalements. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the group and the ¢harily wi51 Continue in business. 14 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Report of the Council of The Corporation of the Church House (continued) Statement of the Council's responslbllities (contlnued) The Council is responsible for kceping accounlins records that are sufficient to show and explain Ihe group aThd charity's transactions and disclose with rcasonablc accuracy at any timc the financial position of the charity and th¢ group and enable them to ¢nswe that the financial statement8 comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provision of the Royal Charter. It is also responsible for safeguarding the assets olthe group and the charity and hence for taking reasonable steps for the prev¢ntion and detection of fraud and other irrcgularities. The Council is responsible for thc maintenance and integrity of the group and the charity financial inforniation includcd on th¢ group and thc charity's websites. Legislation in the United Kingdom governing the preparation and dissemination of financial statement8 may diff¢r from legislation in other jurisdictions. Approved and signed on behalf of the Council Callon Dr Christina B4xter CBE Chalr Hylvel Rees-Jones Treasurer and Deputy Chftir 19 May 2022 15 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Independent auditor's report to the Council of The Corporation of the Church House Opinlon We have audited th¢ accounts of The Corporation of th¢ Church House and its subsidiary lor the year ended 31 December 2021 which comprise the group and parent charity statement of financial activities, the gr(iup and charity balance sheets, the Consolidated stalement OF ￿$h flows, the principal a￿ounting policies and the notes to the accounts. The financial rew)rting framework that has been applied in their preparation is applicable law and United Kingdom Accourtting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accq)ted A￿Unting Practice). In our opinion. the accounts: give a true and fair view of the state of the group's and of the parent charity's affair5 as at 31 December 2021 and of their income and expenditure for the year then ended. have been prop¢rly p[q)a[￿ in accordance with Unit¢d Kingdom Generally Accepted Accounting Prdctiee. and hav¢ b¢cn prcpared in accordance with the requirements of th¢ Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intcmational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further dcscribcd in thc auditor's rcsponsibilities for the audit of the a￿oUntS section of our rwrt. We arc indepcndenl of the group in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK including the FRC'S Ethical Standard, and wc 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 relatlng to going eone¢rn In auditing the ￿￿ount5, we have concluded that the Council rn¢mb¢rs' use of the going concern basis of accounting in the preparation of the a￿OUnts is appropriate. Bas¢d on the work we have perfonned we have not identified any material uncertainties relating to events or condilions that, individually or collcctively, may cast significant doubt on the group and parent charity's ability to ¢ontinue as a going conccrn for a pcriod of at leasl tw¢lve months from when the accounts are authorised for issue. Our rcsponsibililies and the responsibilities of the Council members with respect to going concern are described in the relevant s￿li0￿8 of this rq)ort. Other information The Council ryiembers are responsible for the o11￿ infom)ation. The other infonnation comprL5CS thc inforn￿tIon included in the annual rqx)rt and financial statements, other than the accounts and our auditor's rcport thereon. Our opinion on the accounts does not cover the other inforniation and w¢ do not cxpr¢ss any fomi of assurance conclusion thcTCOn. 16 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Independent auditor's report to the Council of The Corporatlon of the Church House (continued) Other Inf(tyrniatioD (continued) In Connection with our audit of the accounls, our responsibility is to read the other infonTLation and, in doing so. consider whether the other infonnaiion is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstaled. If wc idcntify such matcrial inconsistencies or apparent material misstatcments, wc are required to deterniine whether there is a material mi8Statement in the a¢courLts or a material misslalement of the other inforniation. If, based on the work we have perforn]ed. we conclude that there is a material misslatem¢nl of this oth¢r inf0M￿tiOn, wc arc rcquired to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if. in our opinion.. the infonnation given in the Chair's report and Report of the Council is inconsist¢nt in any material respect with the accounts; or sufficient a¢￿UntIng records have not been kept,. or the aceounts are not in agre￿nent with the accounting records and rcturns. or we have not reccived all thc information and explanations we require for our audit. Responslbillties of the Council As ¢xplained mor¢ fully the Council's rcsponsibilities statement, the m¢mbers of the Council are re8pon8ible for Ihe preparation of the accoullls and for being satisfied that th¢y give a true and fair view, and for such internal eontrol as the Council members deterniine is necessary to enable the preparation of a￿ount8 that are frcc from material misstal¢rnent. whether due to fraud or crror. In prq)aring thc accounts, the Council members are responsible for assessing the group's and the parent charity's ability to continue as a going Conce￿ disclosingj as applicable, matters related lo going concern and using the going concern basis of accounting unless the Council either intend to liquidate thc group or the parent charity or to cease operations. or have no realistic alternative but lo do so. Auditor's responsibilitles for the audit of the accounts Our objectivcs are to obtain reasonable assurance about whether the accounts as a whole are free from material misslat¢ment, whethcr du¢ to fraud 01 error. and to issue an auditor's rcport that includes our opinion. Reasonablc assurance is a high level of assurance. but is not a guarantee that an audit conducted in a¢wrdancc with ISA8 (UK) will always detect a material misstatement when it exists. Mi8slalements arise from fraud or error and arc considered material if, individually or in the aggregate, they eould reasonably be expect￿ to influence the ￿onoMiC decisions of users taken on the basis of thcsc accounts. Irregularities, including fraud, are instances ofnon-compliance with laws and regulations. We design procedures in line with our r¢sponsibilities, outlined above, lo detect material misstatements in rcspcct of irregularities, including fraud. The extent lo which our procedures are capable of d¢t¢¢ting irregularities, including fraud, is detailed below. 17 THE CORPORATION OF THE CHURCH HOUS AND ITS SUBSIDIARY Independent auditor's report to the Council of The Corporation of the Church House (continued) Audltor's responslbfilltles for the audit of the Ydecounts (continued} How ihe audit way con.Yidered capable ofdeteciing irregwlarilies includingfraud Our approach to identicying and a$s￿sing the risks of material misstatement in respe£t of irregularities. including fraud and non-compli￿ce wilh laws and regulations, was as follows: Th¢ engagem￿1 pat1ner ensured that the engagement team collectively had Ihc appropriatc competence, capabilities and skills to identify or recognise non-cornpliance with applicablc laws and regulations,. We identified the laws and regulations applicable to the charity through discussions with key management and from our knowledge and experience of the charity sector. - Wc focused on specific laws and rcgulations which w¢ considered may have a direct material effect on the accounts or the activiti&s of the charity. These included but were not limited io the Charities Aet 2011, Accounting and Reporting by Charities.. Stateinent of Recommended Practice applicable to charities preparing their a￿OuntS in a¢¢ordanc¢ with th¢ Financial Rewrting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective l January 2019) and those relating to health and safcty legislation,. and We assessed the ext¢nt of compliance with th¢ laws and regulations id¢ntifi¢d above tbrougb making enquiries of key management and review of minutes of Council members, meetings. Wc as5¢sscd Ihc susceptibility of the charity's fu￿nCIal statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. - Making enquiries of key management as to whcre they considered there was susceptibilityto frdud, Ihcir kn(Trwlcdgc of actual, suspected and alleged fraud. and Considering the internal controls in place to mitigalc risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of ¢ontrol8, W¢: Perfomied analytical procedures to identify any unusual or unexpected relationships. - Tested and review&1 journal cntrics to idcnlify unusual transactions. Tested the authorisation of expenditure. - Assessed whether judgemenls and assumptions made in detennining the accounting estin￿teS were indI￿tive of potential bias,. and - Investigated Ihe rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. - Agreeing financial slalem¢nt disclosures lo und¢rlying supporting docum¢ntation,' - Rcading thc minulcs of meetings of Council members,. and Enquiring of as to actual and potential litigation and ¢18ims. There are ittherenl limitations in our audit proccdurcs described abovc. The more removcd that laws and regulations are from fjnancial transactions, the less likcly it 18 that we would become awarc of non-compliance. Auditing standards also limit the audit procedures required to identify non- compliancewith laws and regLdations to enquiry of keymanagement and the inspection of ￿gUlatOry and legal correspondenc4 if any. Material misstatements that arise du¢ to fraud w] b¢ harder lo d¢t¢ct than ihose that arise from error as they may involve deliberate concealrnent or collusion. 18 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Independent auditor's report to the Council of The Corporation of the Church House (contRnued) Auditor's responsibilities for the audit of the accouDts (continued) A further dcscription of our rcsponsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uk1audltors￿gp0n8ibll1ts¢s. This description fom)s part of our auditor's report. Use of our report This report is made solely to the Council, as a bodyj in accordarLce with section 144 of the Charities Act 2011 and with regulations made under section 154 of ihat Act. Our audit work has been Undertak￿ so that w¢ might stat¢ to the n]embers of ttLe Council those n￿tte[S we are rcquircd to state to them in an auditor's rcport and lor no other pu￿08¢. To the fullest extent pern)itled by law, we do not accept or assume resEK)nsibility to anyonc other than the charity and the Council members as a body. for our audit work, for this report, or for the opinions we have fonned. Buzzacott LLP Stathtory Auditor 130 Wood Street tA>ndon EC2V 6DL Date: 13 June 2022 Buzzacott LLP is eligible lo act as an auditor in tern￿ of s￿tIOn 1212 of the Companies Act 2006 19 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Consolidated statement of financial activities for the year ended 31 December 2021 2021 2020 Note fncomc from: tnvestments and bank deposi Other trading a¢tivities- Conference Centre Charitable activitie8 - Rental income and Service charge Donations and legacie8 Other . Coronavirny Job Retention Scheme Grant . Dilapidation receip18 . M8n8g¢m¢nt fe￿ receivable - Profit on disposal of tangible fixed a88ets 429,340 2,275,613 309.755 I,IM)2,252 17{bl 2.764,021 2,845,519 500 85,907 180.293 25.000 6,667 555 6,667 Total Ineome 5.561.554 4,370,541 ExpEnditure on: Raising funds . Investment management fee . Confrrence Centre costs . Taxatio Charitable actiYitie8 112,643 1,000,913 96,384 .556,261 {11.9401 17{bl Grani8 awarded to the National Church InstibJtiOn8 of the Church of EnglaDd . Corpordtion operating c()stg Other . Inwest pllyable . Loss on disposal of tan¥ibl¢ f]x¢d assets 1,752,000 3,057,878 1,752,000 3,045,984 8(8) 401x1 1,167 8.000 Total expendlthre 6.520,601 6,446,689 r4et expenditure before galn$ on Iiivestments Net gains on investmeiils L¥et income (expendlture) (965,047) (2.076,l48) 2,002,801 1,563 1,037,754 (2.074,585) 10 Other re¢ognised galns AC￿arial gains on defined benefit p¢nsion 8oheme r4et movemellt In fuiTrds 8(a} 2,961 1.040,715 206,000 (1,868,585) Re¢oDciliation fjf funds: Fund balances brought forward al l January Fund balances carrAed forward at 31 Deeember 13 13 23,419.018 25.287,603 24.459.733 23,419,018 All of the ￿￿￿p,S ￿L'tIvitieS deyivtsl from crtnlinuing upw4lions 0￿[7￿9 the abovE Iwo fi￿ll￿ClaI PEiiods. The stat¢￿t of fiThaM¢ial aciiviiies IDrlude5 all a￿[ losse5 r¢co8nisal in Ehe year. All incoine ènd ex￿ndli￿￿ of Lhe cliarity was unr&sliiclcd during thc &bove two firAttci&l ￿0ds. bund b)laNc> at 31 Dxember2020 aN{2￿11 i￿lude Lystiicted fi]ndsof£9,254. nole4onpag¢5 23 10 45 forni partof Ihc financial Stsleinenls. 20 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Balance sheets as at 31 December 2021 Group The Corporatlon 2021 2020 2021 2020 Not¢ Flxed assets Tangible asseL* Investments Total fixed assets 3,048,903 21,974,029 25,022,932 3,749,444 2,859,956 3,468,418 21.170,26I 22,474,029 21,670,261 24.919,705 2S,333,985 25,I38,679 io Current assets Debtors.. due after mor¢ than one year Debtors.. duc within one year Cash at bank and in hand I l{a) 11(b) 1,00fj431 S80,268 1,514182 3,098,881 500,628 1,012,315 ,467,488 2,980,431 806,049 2,260,479 3,066,5Z8 1,062.940 1,497,047 2,559,987 Total current Assets Liabilities Cr¢ditors- amounts f#llittg withi one year Net eurrent OIAbllltles) Assets 12 (3J96,727) (3,684.700) (2,438,039) (3,231.176) (330,199) {1,124,713) 660,842 (250,745) Total assets less current liabilities 24,692,733 23,794,992 25,994027 24,887,934 Provision8 for liabilities and charge5 8(a) (233,000) {375,974) (233,000) (375,974) Total net assets 24,45Y,733 23.419.018 25,761,827 24,511,960 The fund5 of the charlty Re8trioted income funds Unrestricted income ￿ndS . Tangible [￿ed assets fijnd . Designated funds . Refurbishment reserye . Grant-mkking reserve . General fund8 . FTee reserves . Pension rescrv¢ .Non-charitsble trading funds Total charity funds 13 13 9,254 9.254 9254 9,254 2,859,9S6 3.468,418 2,859,956 3,468,418 6,405.011 111,oi)0,000 6,405,011 12.005251 10,IZ5,617 12,005,251 10,125,617 3,1100,000 3,000,000 3,000,000 3,000,000 (233,000) (375.974) (233,000) (375,974) 11,302,094) {1,092,942} 24,459,733 23,419,018 25.761,827 24,511,960 14 Thc finaLKial 51alemellts whi¢h¢ompAs¢thc ¢onsDlidat•l state￿*￿toffinan¢lal aEliyi1i￿.l￿C batsn¢esheet4 1h¢¢oll801ida￿l 8tat*ncrt ws ¥nd Ili UJiJM8e6 23 10 45 wErr App[Ov￿ by thcCounGil on 19 May 2WL2 a￿d si8nedon its bchalf by CANON DR CHIUSTINA BAKfER C Member ofcouncil and Chair of th¢ Council •ember of Council, Treasurer and Deputy Chair Secretary HYWEL REES.JONES STEPHANIE MAUREL 21 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Consolidated statement of cash flows for the year ended 31 December 2021 21121 2020 Note CAsh flows from operating attivitie5 Net cash (used in) provided by operating aciivitie8 (687,498) (2,131284) Cash fioivs from Investh)8 aetlvRties Income from listed investments Inter£8t received Purchase of tangible f￿ed assets Proceeds from the sale of tangiblc fixed assets Purchase of fixed asset inv&8tment8 Proceeds from the disposal of fixed asset investments Net ¢a5h provided by illve5ting 8Ctivitles 428,615 731 (177,449) 303.924 5,831 (144.267) 555 (3J84,228) {3,818.739) 3,821.773 4,623.443 689,442 970,747 Ch#nge In cash and cash equlv8lents 1,944 {1,160.337) C8sh 8nd cjsh equlvalcnts at l January 3,191,438 4,351.975 Cash and cash equivalents at 31 December 3,193J82 3,191,438 Notes to the eonsolidated statement of CY4sh flows for the year to 31 December 2021 A Re¢onciliation of net movement in funds to net cash (used An) provided by operating activities 2021 2020 Net movement In funds (As per consolidated statement of flnanelal i¢tivltle$) Adjustments for: Depreciation of tangible r￿ed a&sets Gain.% on iDvestmcnts Loss {profit) on disposal of tangible fixed assets Investment income Decreage {increa8e) in debtors (De¢rease) in creditors (Decre&qe) irt provisions Net cash (u8ed in) operating aetivitiei 1,040,715 (1,868.585) 870,823 1,288,603 (2,IM12,801) (1.563} 1,167 (555) (429J46) {309,755) 256,891 {454.538} (287,973) (444,878) (142,974) (340,OIJ) (687.498) 12,13 1,284) B Analysis of cash and Cash equivalents 21121 2020 Cash at bank alld in hand Cash held by investsnent managcr5 Totfil eash And eash equivalent8 2,260,479 932,903 3,193J82 1.497,047 1,694,391 3,191,438 22 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financRal statements for the year ended 31 December 2021 I Prlncip&l aeeounting polieles The principal accounting p)licies adopted, judg¢m¢nts and key SoU￿eS of eStIn￿tion uncertainty in the prwaration of the financial statements are laid oui below. ) Basis of accountlng Thes¢ fll)ancial statements have becn prcparcd for thc ycar to 31 December 2021 with comparnlive InfOrn￿tiOn given for the year ended 31 December 2020. Thc financial statements have b¢en prepared under ih¢ historical cost convention with itcms recognised at cost or trdnsaction value uz]less otherwise stated in the relevant accounting policies below or the notes to these financial statements. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Siat¢m¢nl of Rwon]mcnded Practice applicablc to charities preparing. their financial statements in ac￿rdanCe with the Financial Reporting Standard applicable in the United Kingdom and Republic of Jreland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and R¢public of Ireland (FRS 102) and thc Charitic$ Act 2011. The Charity constitutes a public benefit entity as d¢final by FRS 102. The financial statements are present￿ in Sterling (£) and are rounded to the nearest pound. b) Crltlcol accounting estimates and Ydreas of Judgement Prcparation of the financial slalements requires the Council mcmbers alld managcmcnt to make significant judgements and ¢slimate8. The items inthe financial statemeThts where these judgements and estimates have been made in¢lud¢.' estimating the useful economic life of tangible fixed assets for the purpos¢s of ael¢nnining the annual depreciation charge. deterniining the recoverability of outstanding debtors. eslimating accrued eKpCt￿]tuTe. assessing the appropriateness of the underlytng assumptions made by the actuary in the valuation of the defined benefit pension schcme,. and estimating ￿tUre income and ¢xpenditure flows for the puryjose of assessing going concenL (see below). 23 THE CORPORATION OF THE CHURCH HOUS AND ITS SUBSIDIARY Notes to the financRal statements for the year ended 31 December 2021 (continued) I PrlnelpAI accounting policies (continued) c) Asse55ment of going con¢ern The Council members have asses8ed whether the use of the going concern assumption is appropriate in Pr￿arIng th¢s¢ financial statetnents. The Couttcil members haye rnadc this assessment in respect of a period of one year from the date of approval of these financial stal¢ments. As explain¢d in thc Rq)ort of thc Council, COVID-19 impacted the operalions of Church House Confcrcnce Centre and activity leve18 havenol yet returned to pre-pandemic levels. The Coryorntion agrccd to support its subsidiary financially and, as explained in note 16, has made loan facilities available to the ￿Mpany. The Corporation ¢ontinu¢s lo monitor the pcrf0rn￿nCC of its investment portfolio and will cornrnence a major rcfuthishmcnt PToject in June 2022 to secure the long-tenn viability of Church House and will increase future renta] incorne through increased Commercial Idting of offLce space. Thc Board of dircctors of Church House Conference Centre are ￿UtiouslY optimistic that the Company will meet its revenue target lor 2022 and that the Company will report a taxable profit in 2022 which can bc grown in subscqucnt years. Thc Board has seen strong evidence of pent-up demand from which the venue is well-placed lo benefit having developed its offer. particularly in temis of Audio-visual capabilities. in order to be able to also deliver virtual and hybrid events. The Council is of the opinion that the overall finances of the CO￿Oration and its subsidiary are robust and, despite the continued challenges that COVID-19 presents, the Council members are of th¢ opinion that th¢ group and thc charity will have sufticient resources lo meet their liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above. d) Consolidated financial statements The consolidated financial statements include The Corporalion and its wholly owned subsidiary undertaking. Church House Conference Centre Limited (company registrdtion number 02869220). Intrd-group transactions and baian¢¢s are ¢lirninaled fully on consolidation. No separate statement of financial activities has been presented for The Coryx)ration within thcsc financial statements. The net expenditure for the year to 31 December 2021 for The Cory)oration only. including the £1,752,0(M) (2020.. £1,752.000} provision for Erants payabl¢, £2,961 of actuarial gains (2020.. £206,000 of actuarial gains) in relation to the provision made for ￿tr]re fimding payments in respect of thc dcficit on the Defined Benefits pension schem¢ (see note 8a), but excluding inv¢8tm¢nt gains, was £752,934 (2020.. net expenditure of £459,590). 24 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) I Principal accounting policies (continued) e) Income recognition Income is recognised in the period in which the group is legally entitled to thc income. where the amount Can be measured reliably and it is probable that the inwme will be reccived. Income comprises rental income, investment income, income generdted by the Conference Centre activities and other income including Coronavirus Job Retention SclLeme grants. dilapidalion receipts and n]anagement fees. Rental It￿Ome is recognised when it becomes contractually due under the relevant Ica5c or tenancy agreement. Divid¢nds are recognised once the dividend has been d￿lared and notification has b¢¢n r￿C)Ved of thc dividend duc. Interest on eash balances held with banks and investment managers are included when receivable and the amount can be measured reliably by the group; this is nonnally upon notification of the int¢rcst paid or payablc by thc bank or th¢ invcstmcnt managcr. Income generated by the Confcrence Centre activities comprises income from room hire, cquipmcnt hire and commission on catering provision. It is measured at the fair value of th¢ consideration received or receivable, excluding discounts, rebates and value added tax. Coronavitus Job Retention scheme grants are credited to income when the charity and group are entitlcd to the funds and when the amount receivablc has become quantifiable. Other income including managI￿ll￿1 fccs and dilapidation r￿cIp1S is mcasurcd al fair valuc and accountcd for on an aCe￿alS basis. D Expendlturc recognltlon Liabilitics are recogniscd as cxpenditure as soon as thcrc is a Icgal OT constructive obligation onunilting the group to make a payment to a third party* It is probable that a transfer of ￿onOMIC benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accn￿lS basis and inclusive of irrecoverable VAT. Expenditure comprises direct ctssls ond support costs. All expenseq, including support costs, are allocated or apportiotLcd lo the appliLable expcndilurc hcadings. Thc classification bctwccn actlVLlies is as follows: Cost of raising funds includes investment management fees 8nd the operating wsts of Church House Conference Centre Limited. Churilable expenditure represent8 all costs associated wilh lurthering the charitable purpose8 of the cor￿ration. lknis includes the direct and indirect costs of numing Church House and granl- making activitie8. I'he allocation of costs to charitable activities, including support cosis, is based upon the calculation of the service charges recoverable from The Cory)oration's lenanis. Otber expenditUTe includcs losses on the disposal of tangible fixed assets. 25 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) I Principal a¢¢ounting policies (continued) fj Expendithre recognition (continued) Grant8 payablc are included in the statement of financial activities when approved and when th¢ intended recipient has either r¢ceiv¢d the fvnds or b¢¢n infom¢d of th¢ decision to make the grant and has sat15ficd all related conditions. Grdnts approved but not paid at the end of th¢ financial year are treated as liabilitics. g) Tangible fixed assets The cost of tangible fjxed assets is their purchasc c05t, togethcr with any incidental expenses of acquisition. Tangible fixed aqsets costing more than £1,000 and with an expected useful life cxceeding one year are ¢apitalis¢d. Depreciation ts calculated so as to writc off thc cost of tangible f￿ed assets less their estimated residual values, on a straighi-line basis over the expected useful economic life of the assets concerned. The annual rates uscd for this purposc are: Freehold buildings Furniture and fittings Telephone and office equipment Plant and equipment Frcchold land is not de￿lat￿. 5.00- 10.00 fj.50- 13.00 10.00- 33.33 5.00- 20.00 An impainnent review is carried out in respect to a particular class of asset if events, or changes in circumstances, Lndicat¢ that th¢ carrying amount of any tangÉble f￿ed asset may not be recov¢¥able. h) Heritage assets Heritage assets have hi8toric, artistic, scientific, technological, geophysical or environmental qualities and are held and maintained principally for their contiibulion to knowledg¢ and culture. The Corporation holds a collection of heritage assets which consist mainly of paintings. These painting5, gified to The Corporation ovcr many years, all represent various aspects of Church herfttage therefore, relate to the Objects of the charity. The Corporation commissioned a prof¢ssional valuation of these paintings for insurance purposes. The wide rangc of potential values suggested by the valuation, highlighted the difficulty of attaching an accurate fin￿l¢la1 valuc to such assets. For this reason, thes¢ assets have not bcen included in the financial statements. 26 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) I Principal accounting policies (continued} i) Investments Listed investments are a forn] of basic fu]an¢ial instrument and are initially recogniscd al their transaction value and subsequently measured at their fair value as ai thc balanL¢ sheet date using the closing quoted market price. The group and charity do nol acquirc put options, derivatives or other complex financial instNrtLents. Reali8ed gains (or losses) on listed investment assets are calculated as th¢ differenc¢ between disposal proceeds and their opening carrying value or theirpurchase valu¢ if a￿uired subsequent to the first day of the financial year. Unrealised gains and losses ar¢ ￿lCUla1ed as thc difference between the fair value at the year cnd and thcir carrying valu¢ at that date. Realised and unrealised inv¢stment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year irL which they arise. The investment irL the subsidiary undertaking is stated at cost less ally provision for pcmjancnt diminution in value. j) Debtors Dcbtors recognised at their settlement amount, Icss any provision for non-recoverdbility. Prepayments are valued at the amount prepaid. 11]ey have been discounted lo the present value of the future cash receipt where such discounting is material. k) Cash At bank and in hand Cash al bank and in hand represents such accounts and instnjments that are available on denwid or have a maturity of less than three months from thc date of acquisition. Cash placed on deposit for more than one year is discloscd as a fixed asset investmenl. l) Creditors and provisions Creditors and provisions arc r￿ognIsed when there is an obligation at the balance sheet date as a result of a past event, it is probable that a trdnsfer of economic benefit will be r￿u]red in settlement, and the amount of the settlement is known orcan be estimatoj rcliably. Crcditors and provisions are recognised at the amount the group or charity anticipatcs it will pay to Settle the debt. m) Fund structure Th¢ tangible f￿cd asscls funds rwresenl the net book value of the charity's tangible fixed assets. Free reservcs rcpresent those monies which are freely available for application towards achieving any charitabl¢ purpos¢ that falls within the group and charity's Charitsble objects. The rcfi￿bish￿¢Th1 T&%ery¢ was established in 2018 to ensurc that the charity holds a level of net assets that would enable it to undertake future refurbishment and improvem￿¢ works to support its prirnary charitable objective of maintaining Church House for the use of the National Church tt]stitutions of the Church of England {NCJs). The Council agreed to increase the balance of this fund to £1 Om as at 31 December 2021 to provide the necessary funds to meet the anticipated £9.6m projcct costs for th¢ major refiubishrnent works to be undcrtakcn at Church House con￿enc1ng in June 2022. 27 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) I Principal accounting policies (continued) m) Fund structhrc (continuea) It has been agreed subsequently to expand the scope of th¢ project and the lolal estimated cost, including contingency allowances of £2.5m, has increased from £9.6m to £16m. Further transfers will bc madc io thc dcsignated refurbishm¢nt fi￿d during 2022 and 2023 to meet the costs of the project. Th¢ grant-making r¢s¢rv¢ r¢pr¢s¢nts the value of net assets d￿18naled and availabl¢ for distribution to the NCIS in the fonn of granL£ to support the charitable objectives of the Church of England. The Council expects to rc¢civc further grant applications from the NCl$ in the short-lemi. It is anticipat￿ that th¢ level of funds to be transferred to thr fund will grow as future Comme￿la1 letting activity increases and generates additional rental income following completion of the refvrbisl)ment projcct in 2023. Th¢ pension res¢rv¢ represents the actuarial deficit on the defined pension scheme. Non-charilable trading fimds comprise of the value of cumulative accumulaTrd losses or retained earnings by Church House Conference Centre Limited. Restrict￿ ￿ndS are ￿ndS with their use restricted to a specific pury>ose as described in note 13. n) LeAsed assets Rentals applicable to operating leases where the benefits and risks of ownership remain Substantially with the lessor are charged to thc statement of financial aetivitieg on a strai￿t-llne basis over the temi of the lease. The group had no finance leascs during the year ended 31 December 2021 or 31 December 2020. o) Pension scheme arrangements The Co4)oration participated in Ihe Church of England Defined Benefit Scheme (DBS) and the Church of England Pension Builder Scheme (PBS), both part of the Church Workers Pension Fund. Both schemes are administered by the chU￿h ol England Pensions Board and are defined benefit pension schemes. Employccs appointed prior to l April 2009 were eligible for membership of the DBS. From this date onwards. thc DBS was closed to new membership applications and all new employees have b¢cn offercd rncmbcrship of the PBS. On l J8nuary 2020, following consultation with employees throughout 2019, The Corporation transferred ponsion membership for all ￿nPloye¢S appointed prior to l April 2009 fTom the DBS to the PBS. From this date all active members have accru¢d fulure pension benefits underihe PBS. The transfer of pension nicmbership does nol impact the value of pension benefits acctued by employees within the DBS prior to 31 December 2019. Paymcnt of nonnal contributions inrespect of IheDBS ceased wilh the transfer ofall active memb¢rs to the PBS on l January 2020 however The Cotyoration continues to pay deficit reLovery contributions in respect of the DBS. 28 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) I Princlpal accounting policies (continued) Pen51011 5¢heme arrangements The Corporntion 15 unabl¢ to identily its share of the underlying assets and liabilitias of the s¢h¢m on a reasonable and consistent basis. Therefore, in accordance with FRS102, it has accounted for its nomydl contributions as if the schemes were defined contribution schemes. Nonnal contributions are Charged ¢0 the statement of firLancial activities when payable. Thc prcscnt valuc of any cxpccted deficit recovery contributions is recogniscd as a liability at Ihc balancc shcct datc. Thc amuunl 18 reviewed atfftually taking into account any changes to the deficit contribution rate or Ihe implicit rdte of interest used in discounting the liability. Furth¢r d¢tai18 of pension scheme arrangements are given in note 8 2 Taxation The co￿￿ratIOn is registered as a charity wilh the Charity Commission for England and Wales (charity registration number213252) and, therefore, is not liable to income tax or corporation tax on incomc or gains dcrivcd from its chaTitable activities, as they fall within the various exemptions available io registered charities. Retained profits of Church House Conference Centre Limited. if any, are subject to Co￿oratIon calculated on the basis of lax rates and laws that have bcen enacted or substantially ena¢¢ed by the balance sheet date. 3 Investment income 2021 2020 Income from list￿ invcs¢m¢nts BaTJk interest receivable 428,615 731 429.346 303,924 5,831 309.755 4 Grants payable 2021 2020 Grants awarded in the year . Archbi8hop¥' CouncRI- National Safeguarding Tea 1.752.000 1,752.(K)O Grants awarded during 2021 were unpaid as at 31 Deccmber 2021 (note 12) and will be paid by twelve equal montbly instalments during 2022. 29 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) S Corporation opergting eo$ts 21121 2020 Staff costs (note 7) House expenses and cleaning Rates, itL8uran¢e and heating oirice and adrninistrative expense8 Repairs and maintenan Marketing Professional fees Depreciation- owned assets Auditor's remukneration- The CoTporati¢)n DoDa(ions and pr¢s¢ntatio 823,099 394,418 316,014 33,843 6SI,499 (785) 53,745 776J59 9,050 36 3,057,878 886.351 364,768 254,678 59,226 206,115 3,558 88,275 1,174,188 8,800 25 3.114S,984 No support wsts have been allocated to The Coryoration's secondary charitable objective of grant- making. The additional tirne r¢sour¢as and ¢osts associated with this activity were minimal. 6 Net movement In funds The net movement in funds i$ stated aft¢r including th¢ following charges: 2021 2020 Auditor's remuneration Audit . Non-audit services- taxation and advisory services Depwiation Hire of equipment 22,871 3,421 876,823 9,990 22,0(x) 8,675 1,288,603 10,312 30 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 7 Staff costs and remuneration of key manydgement personnel The averag¢ number of persons employed by The Corporalion and its subsidiary during the year is analysed below: Group 2021 Number The Corpor•tlon 21121 Number 2020 Number 2020 Number Maintenance and sea￿lty Administration io 16 26 io 23 34 16 17 Staff costs during the year were as follows.. Group 2021 The Corporatlon 2021 2020 2020 Wages and ￿larIeS S￿1￿1 security eosts Other pension cos 1,096J13 122,967 145,933 lJ65,213 1,434,940 148,136 190,690 1,773,766 703,763 77.032 42,304 823,099 753,026 82,492 50,833 886,351 There were no redundancy payments in 2021. In 2020 wages and salaries included £66,226 relating lo redundancy arrangements for 10 employees of which £13,748 rclatcd to non-contractual payments. Employee infom￿tIon for the group includes employees who arc on full time sccondment to the Conference Centre. The cost of theye employees is included within lh¢ Cost of raising fimds. Th¢ number of employccs carning £60,000 pa or more (excluding ¢mploy¢r's pension and national insurance contributions bul including taxable benefits) was.. Group 2021 Number The Corporatlon 2021 Number 2020 Number 2020 Number £60,000 to £691.999 £70,000 to £79,999 £80,000 to £89,999 £90,000 to £99,999 £IOO,000 to £109,999 £I10.000 to £119.999 Retirement benefits under a defined benefit W￿lOn scheme are accruing to 3 (2020.. 5) employees earning more than £60,000 annum. Employer pension wntributions totalling £35,790 (2020.. £59.837) were paid in respect to these employees. 31 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 7 Staff costs and remuneration of key management personnel (continued) The key management personnel of the group in charge of directing and controlling, running and operating the group on a day to day basis comprise the Council and the Senior Management Team of the charity. The total rcmuncralion (including cmployer's national insurancc contiibutions, taxable benefits and employer's pension contribution5) of the key managcment pcrsonncl for the year was £304.126 (2020: £496,023). During the year endcd 31 December 2021, expens¢s of £994 (2020.. £845) w¢r¢ reimbuTsuI to 5 (2020.. 5) members of th¢ Council. Thc cxpcnscs relatcd to thc costs of trdvclling to Council meetings. No member of the Council ￿e1Ved any remuneration in respect of their seTViCeS as members of the Council (2020: £Nil). 8 Pensions The Church Workers P¢n8ion Fund (CWPF) has a section known as the Defined Benefit Scheme (DBS) and a section known as Pension Builder Scheme (PBS) {¢omprising both the deferred annuity section known as Pcnsion Builder Classic and a cash balance section known as Pension Builder 2014). During ihe year, The Corporation participated in both DBS and PBS schemes. Employees appoint￿ piior to l April 2009 wcre eligible for membership of the DBS. From this date onwards, the DBS wa8 closed to new mcmbership applications and all new employ¢es ILav¢ b¢en offered membership of the PBS. On l January 2020, following consultation with cmployees throughout 2019, The Corporation transferred pension membership lor all employKs appointcd prior to l April 2009 fro￿ the DBS to the PBS. From this date all activ¢ members have accrued fvture pension bcncfits underthe PBS. The transfer of membership docs not impact the value of pension benefits a￿Th¢d by employ¢es wiihin the DBS prior to 31 Dcccmbcr 2019. The Corporation will continue to pay any required contributions to fijnd future deficits in the DBS scheme and will continue to liaise with actuaries in respect to schemc valuaiions. a) Defined Benefir Scheme The DBS section of the CWPF provides benefits for lay staff based on final pensionable salaries. Thc Schcmc is administered by the Church of England Pensions Board (CEPB), which holds the assets of the schemes separately from those of The Corporation and the other participating ¢mploy¢rs. For funding pu4)oses. the DBS is divided into sub-pools in respect of each participating employer as well as a fi￿her sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks bclween einployers, including those r¢lating to mortality and post-retirement invesiment returns. The division of the DBS into SU￿p(K)IS is nolional and is for ihe puryx)se of calculating ongoing contributioJ)s. They do not alter the fAct that thc assets of the DBS are held as a single tn￿t fijnd out of which all the benefits are to be providcd. From time to time, a notional premium is transferred from employers. sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool. 32 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) Penslons {wntinued) A) Defined Benefii Scheme 1118 not possible to attribute the scheme's assets and liabilities lo specific employers, since each employer, through the Life Risk Pool. is exposed lo actuarial risks associalcd with the ¢urrent and forn]cr cmployees of other entities participaling in the DBS. The scheme is considcred to bc a multi- employer scheme as described in Section 28 of FRS 102 and as such contributions are accounted for as if the Scheme were a dcfined contribution scheme. The pensions Costs charged to the statement of financial aclivitics ill thc year are contributions payable towards benefits and expens￿ accrued in that year* plus any impact of deficit conlributtons (see below). If. following an actuarial valuation of the Lil¢ Risk Pool, there is a surplus or deficit in Ihe pool and the Actuary so reLommends, further transfer8 may bemade from the Life Risk Pool to the employe￿, sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be 8ettlcd by thc CEPB on the advice of the Actuary. A valuatioll of the DBS is carried out once every three years, the most r￿ent having been completed as at 31 December 2019. In Ihis valuatiorl the Lile Risk Section was shown lo be in deficit by £7.7m and £7.7m was notionally transferred from the employers, sub-pools to the Life Risk Pool. The overall deficit in the DBS was £l1.3m. On the ba8is of ihe rethiced deficit position (see below) reported as part of the triennial fimding valuation as at 31 Dcccmber 2019, the times￿1¢ for the deficit lo be ￿llY fi]nded was reduced by an ¢stimated 21 tnonths. The Corporation will continue payment of defA¢It re¢ov¢ry ¢onlributions of £142.013 pcr annum and at the current time il is e8timated that the deficit will be fully funded by 30 June 2023. s￿tion 28.1 IA of FRS 102 requires agreed deficit recovery payments to ￿ reeognised as a liability. No contributions werc madc to the scheme in the cutrent or prior year other than for the deficit paynmls r¢f¢r¢nced abov¢. 33 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBStDIARY Notes to the fRnancial statements for the year ended 31 December 2021 (continued) 8 Pensions (continued) a) Defined Beneflt Scheme (contlnmed) The movement in the provision in relatA'Oll to th¢ d¢ficit paymU￿ plan is sel out below: 21121 2020 Balance sheet liability at l January Deficit conttybution paid Charged {credit¢d) to thr 5taternent of fu￿1claI activities . Interest cost - Change to the balan¢¢ sheet liability Balance sheet liability at 31 Deeember 375,974 (142,1113) 715,987 (142,013} 2,000 {2,961) 23J,000 8,(K)O 1206,000) 375.974 The Significant change in ihe 2020 balance sheet liability refiecl8 the positive impact resulting fiDm the transfer of mcmbcrs from the DBS lo the PBS on l January 2020 as outlined above. The balance sheet liability represents the present value of thc deficit contributions agrccd in the 31 December 2019 valuation and has been valued using the following a85uniplion5, set by reference lo the duration of the deficit recovery payment8.' 31 31 De¢embeT December 2021 2020 De¢ember 2019 Di8¢ount rate 1.30 1.30 Other available information relating lo the valuation as at 31 December 2019 is given below.. Financial assL￿ptIonS.. Price inflation.. Ratcs of inv&stmenl return.. prior to retirement . p￿$t retirement RP13.20/(* P4 CPI 2.400/ 3.700/0 pa 1.850/0 pa reducing to 1.4/0 PetLsion increases-. 50/0 pa cap 3.lo/opa 2.100/0 pa Futur¢ salyry incre&qes CPI plus 0.50/0 pa Market value of DBS a8sets Market value of Life Risk Pool &8s¢ts £426.6m £235.3m 34 THE CORPORATION OF THE CHURCH HOUSE AM) ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 8 Pensions (continued) a) Defined Benefit Scheme (continued) Pension costs are a¢countd for (Trn the basis of charging the expected cost of providing pensions over the period during which Ihe group benefits from thc cmployces, scrvices. The cffects of variations from regular cost are spread over the expecl¢d average remaining service lives of members of the scheme. b) Pension Builder Scheme The Pension Builder Sch￿ne of th¢ Chuwh Workers Pension Fund (CWPF) is madc up of two sections, Pension Builder Classic and Pension BuildeT 2014. both of which are classed as defm¢d bcnefit schemes. Pension Builder Classic provides a pension for members for payment fmm retirement, acLumulated from contributions paid and converted into a deferred annuity during employment based on terns set and reviewed by the Church of England Pensions Board (CEPB) from Lime to time. Bvnuses may also be declarcd, dqycnding upon the investment returns and other factors. Pension Builder 2014 is a cash balance 8ch¢me ihat provides a lump sum that memb¥rs use to provide benefits al retirement. Pension contributions arc rccorded in an account for each member. This account may have bonuses added by the CEPB before retir￿llent. Thc bonuses depend on investment experience andoiher factors. There is no requiremcnt for the CEPB to grant any bonuses. The account) plus any bonuses d￿lared. is payable from menthers, nornial pension agc. Th¢re is no sub4ivision of assets between employers in each section of the Pension Builder Sch¢me. The Scheme is considered lo be a ￿Ul11-c￿P1oycr 5chcmc a5 d¢bcribed in Section 28 of FRS 102. This is because it is not possiblc tu atlribule the Pen8ion Builder Scheme's assets and liabilities to specifi¢ ernployers and contributions are accounted for as if th¢ Scheme were a defmed contribution scheme. The pension costs are charged to the statement of finan¢ial activities in the ycar contributions arc payable. A valuation of the Scheme 18 carried out once every three years. The most recent scheme valuatlon was carried out as al 31 December 2019. This reveal￿, on the orLgoing assumptions used, a deficit of £4.8m. There is no requiremenl for deficit funding payments at the current timc. Pension Builder 2014 is valua in relation to the lump s4lln payable to members at nomul pension age. There are no annual pension benefits. The most recent scheme valuation w3s ¢atTied out as at 31 December 2019. This revealed, on the ongoing assumptions used. a sU￿]uS of £5.5m. 35 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 8 P¢nslons (continued) b) Pensi4)n Builder Scheme (continued) Rcgular employer contributions vary between 9/. and 15.5 % ofpensionable salary for each member. Th¢ cxact contribution ratc is dctcrrnincd by the age of a rnember as at l April, the Schem¢ r￿l¢W dale, each year. Althou￿ th¢ Scheme is non-contributory, employees can elect to make Additional Voluntary Contributions (AVCS). For each l AVC paid by a metnber, The Corporation pays an additional employer contribution of l % up lo a maximum of 30/0. During the year to 31 Deccmbcr 2021, Thc Corpordtion paid employer contributions of £145.933 {2020.. £190.690) and this has been included in the pension costs ill these financial statem¢nts. No pcnsion contributions were prepaid or outstanding at 31 December 2021. 9 Tangible fixed assets Freehold laknd and buildings Fumiture Telqjhonc and 0￿1¢£ equipment Plant fittings equipment Total Group Cost At l January 2021 Additiot Disposals At 31 DK¢mber 2021 6,021,485 8,607 7,203,992 1,151,756 15,188 (3,500} 1,163,444 7,697,283 153,6 22,074,516 177,449 (3,500) 22,248,465 6,030,092 7,2113,992 7,8S0.937 Depreeiatityn At l January 2021 Disposals Charge for the year At 31 December 2021 4,051.n19 6.654,751 942.197 (2,333) 77.785 1,017,649 6,677,105 18.325,072 12,333) 876,823 19.199.562 190,199 4J41,218 411,394 7,066,145 197,445 6,874,SSO Net book value5 Ai 31 December 2021 At 31 December 2020 1,788,874 1,970,466 137,847 549,241 145,795 209,559 976,387 1,020,178 3,048,903 3,749,444 36 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 9 Tanglble fixed assets (continued) Fre¢hold land and buildJn88 Fumiture Telephone and office equipment Plant alld equipmenl fittings Total The Corporation Cost At l January 2021 Additions Disposajs Al 31 Dec¢mb¢r 2021 6,021,482 8,607 6,739,337 430,416 6.803 (3,500) 433,719 7,697,283 20,888,518 153,654 169,064 (3,500) 21,054,1182 6,1130,089 0,739,337 7,850,937 DepreelatloD At l January 2021 Disposal8 Charge for the year At 31 December 2021 4,051.021 6,271,906 420,068 (2.333) 5,029 422,764 6.677,105 17,420,100 (2,333) 776,359 18,194,126 190,199 4,241220 383,686 6,655,592 197,445 6,¥74,550 Net book value$ At 31 Decetnber 2021 At 31 D¢ccmb¢r 2020 1,788,869 1,970,461 83.745 467,431 10,95S IOJ48 976J87 1,020,178 2￿59,956 3,468,418 In the opinion of the Council. Church House is worth substantially mor¢ than the b(K)k value re￿rted in these fllwicial slatcmcTLts. The Corporation holds a collection of heritage assets which consist rnainly of paintings. These paintings, gifted to The Corporation over many years. all represent various aspects of Church heritage and, therefore, relate lo the Objects of the charity. The Coryoration commissioned a professional valuation of these pailllings for insurance purposes. The wide range of potential values suggested by the Valuatio￿ highlighted the difficulty of attaching an accurate financial value lo such asscls. For this reason, these assets have not been included in the financial statements. 37 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 10 Investments Listed inveslments 2021 Totgl 2020 Total Cash Group Cost or valuatlon Ai l January Additiorts Disposals at opening b￿k y￿ue (proceed5 £3.821,773; gains £80,970) Net unrealised gains Net movernent in year At 31 December 19.475,870 3,384.228 1.694.391 21.170.261 3?84,228 21,022,257 3,818,739 (3,740,803) 1,921,831 (3,740,803) 15,029,305) 1,921.831 407.425 (761,488) 951,145 21.974,029 21.170.261 1761,488} 932,903 21.041.126 InVest￿ent in subsidiary undertaking Listed investmertts 2021 Total 2020 Total The Corporatio Cost or vilualion At l January Additions Disposa15 at opening book value (procceds £3,821,773; gains £80,970) Net unrealis¢d gains Nct movement in year At 31 Decernber 500,000 19,475.870 3,384,228 1,694J91 21,070,261 3a84,228 21,522,257 3,818,739 13,740,803) 1,921,831 (3,740,8113} (5,029,305) 1,921,831 407,425 (761,488) 951,145 22,474,029 21,670,26L {761,488) 932,903 500,000 21,041,126 The interest in the subsidiary undertaking repr&%ents the cost to The Corporation of wholly ownin£ the share capital of Church House Conference Centre Limited. The principal activity of that company is the operation of a conference centre at Church House and it covenants its taxable profits to The Coryoration. summary of the trading results and balance shect of Church House Conference Centre Limited is shown in note 17. Listed investments held at 31 December 2021 compri8ed'. 2021 2020 Group UK bonds Int¢rnation41 bonds UK equities Int¢rnational equities Private equity and altematives Total listed investment5 Cash with invfstment managers 264,24 774,1127 1,443,630 1.747,293 8,515,039 7,780,730 S J60,336 7,073,410 2157.867 2.099,610 21.041,126 19,475,870 932,903 1,694,391 21,974,029 21,170,261 Historic cosl of listed investments (excluding cash) 15,824,247 15,182,272 38 THE CORPORATION OF THE CHURCH HOUSE AIND rrs SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 10 Investments (continued) At 31 December 2021, the following individual holdings were deemed material: 2021 2020 /oor investment portfolio 4.64 4.56 3.94 3.75 3J3 3.15 3.07 2.91 2.90 2.79 /oof invesmient portfolio 4.38 5.38 3.88 3.21 0.00 0.00 3.20 2.86 4.39 2.54 Vilue Value M¢Tian UK Suwller Compgni¢¥ Fund Findlay Park AtneriGan Fund William Blair US Small Mid Cap TM Tellworth UK Smaller Companie8 Ljonlwst Suslaingble future Sehroder Global Recovery Fund WelliD¥ton Global Heajth C￿e Egerton Capitsl Investtnent Fund Vanguard S&P 500 UCITS ETF Polar Capital Technology Tn￿l PIC 977,233 958.490 829,5113 789,897 701,100 663,%10 45,380 612,898 010,542 586.520 853,211 1,047,690 754,867 625,924 623,267 557,208 855,750 495,575 All listed investments were deali in on a recognised stock exchange. 11 Debtors Amounts recelvable after onc year Group 2021 The Coryoratioii 21121 2020 2020 Owed by subsidiary undertaking 1,00&431 5(M),628 The amount of £l,(X)6,431 (2020: £500,628) owed by thc subsidiary undcrtakin& Church House Conference Centre Limited, represents the capital amount advanced fiDm the loan facility (see note 16) at the year-end together with accnKd iM¢rest receivable. und￿ the lem]s of the loan facility, this amount, togetherwiihany subsequentadvances and additional interest accrn￿, is payable to the Charity no later than 31 December 203I, or upon the Company giving notice of ils u)tention to exercise the brcak cla￿￿e contained within its lease a￿eeMent. b. Amounts receivable within one year Group 2021 The Corporxtitsn 21121 2020 2020 Trade debtors Owed by yubbidiary undertakm Rental debtors Other debti>rs Recovuable VAT Prepayments and accrued income 560J14 92,822 79,154 291,719 1,241 3,270 45,685 159,20D 5811,268 72,020 1,24 3,270 45,68S 195,540 806.049 823,447 15,025 823,447 15.025 131.646 1,062,940 101,823 1,012,315 39 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 12 Credltors: amounts fydlling due within one year Group 2021 The Coryoratlon 2021 2020 2020 Trade artd expen8e creditors Taxation and social securily costs Amounts owed to subsidiary undertaking Other creditors Depo$its held Grants payable to the National Church Ingtitutions of thr Church of England Accjuals VAT payable DefeThed inc¢)me (see below) 520,029 49.054 100,463 39.166 145,135 49,(154 81,242 39,166 19,825 3.817 19,749 312,959 3,817 335,288 19,749 1,752,000 631.430 98,300 13200 3096,727 1,752,(MX) 455,022 302,043 696.901 3,684.71K) 1,752.000 458.901 1.752.0 406.983 231,242 696,901 3.231,176 13,ZOII 2,438,1139 Grollp 2021 The Corporation 2021 2020 2020 Defe￿ed in¢orn¢.' At l January 2021 ReleasEd in the year Deferrcd in the year At 31 Decernber 2021 690.901 (696,901) 13,200 13,200 839,101 (839,101) 696,901 696,901 696,901 (696,901) 13200 13,200 839,101 (839,101) 696,901 696,901 Deferr¢d income rcprcscnts rental income and service charge received from tenants in advance of the financial year end but relating to the following financial period con)mencing l January 2022. Thc reduction in dcfcrred incorn¢ in 2021 r¢sulted from ihe remeasurement and reallocatloll of space at Church Housc and remodelling of service charges to be paid by tenants. As a consequence, rent and service charge invoices for 2022 quarter one were issued afler l January 2022. 40 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 13 Net funds Net gains OTr revalw41iu Nel income Ai l January lexpenditurel 2021 for the year At31 December A¢iu&ri8J gain8 investmenty Transfers 2021 Group Restricted funds Unrcsrricicd incom¢ funds Tangible fixa assets fund De51¥lJZled tunds . R¢furbishmenl r&erve . Grant-making reserve - Gcncral fund5 . Free tY8etTres . Pension r¢s¢r¥e Non-chaTltabl¢ tradirtg funth Tot41 9,254 9.254 3,468,418 1777,5261 169,Ik54 2.859,956 6,405.011 12.005.251 (162.2611 (1,7510001 3,757,250 10,IKIO.000 1127,6341 10,125,617 3.(K)o,rM)o 1375.974} {1,092,9421 23.419.018 1,937,892 12,rx)o} 1209.152} (965.047) 2,002.801 {3,940,6931 3.UOO,ooD 142.013 1233,0001 11,302.094) 24,459,733 2.961 2,￿2,801 2,961 ¥ains on revaluatioj) income Ai l January {up¢nditur¢} 2021 for the year At31 Actuarial gains De¢ember IIIVC51mcnts Transfers 2021 The Cotporatlon Resthctcd fur￿5 Unre5￿￿ed incoTh¢ funds . Tangible fix(xl &8sbXS fund Dcsignatcd fund% . Refurbishment reserve . Grant-making T*¢rv¢ . General funds . Frts rcsctvcs . Pension reserve 9.254 9,254 3.408.418 {777.526) 109,064 4859.956 6,405,011 12,005,251 {162,261} {l.752,lJOOI 3.757,250 10.OIJO,000 (127,6341 111,125,617 3.000,000 (375.9741 24,511,960 1,937,892 12.11001 1755,8951 2,￿2,￿101 13.940.693) J.WO.o(ko 142,(J13 (23.1,000 25,761,827 2.961 2.961 TotAI 2,002,801 A prow)rtion of the gentral fimds is reprcsented by endowm&it funds which arose frorn the original appeals for the cOnStn￿li0n of Church House in 1885. These fLuth can no longer be scparately identified but the Council is of the opinion that they are immatcrial. Re8trAcled funds totslling £9,254 (2020.. £9,254) areTetained for th¢ specific purpose of maintaiDing the portrait of Arohbishop Davidsim including periodic restorydtion and repair works as requird. 41 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 14 Analysls of net assets between funds Tangible Designated fixed fund8 at)d assets restricted fimd funds Non- charitable trading fLULd Pension To¢•1 funds reserves Group Fund balan¢e¥ #t 31 December 2021 are represented by: Tangible fixed a&se Inve¥tTnents Net current assets {liabilitics) Provision$ for liabilities Total net assets 2.859,956 188,947 3,IM8,903 21,974,029 11,491.0411 (330,199) (233,000) {233,000) 2,859,956 20,134,871 3.000,000 (2J3,000) {1 J02.0941 24A59,733 20,125,617 1,848,412 9,254 1,151,588 Tan8ibl¢ fixed a&s¢ts nd Designated funds and re51ricted funds Pellsion Total funds reserye The Corporation Fund balAnces at 31 December 2021 are represented by: Tangible fixcd as8ets Investments Net cuttertt &ssets Provision8 for liabilitie8 To¢*1 net 4s$els 2,859,956 2,859,956 22,474,029 660,842 (233,000) 25,761027 20,125,fj17 9,254 2,348,412 651,588 (233,0001 (233,000) 2,859,956 20,134,871 3,000,000 The total unrealised gains as at 31 December 2021 constitutes movements on revaluation and are as follows: 2021 2020 Unreili8ed included above: On investment$ 5,210,879 4,096,108 ReconciiiatlOD of movements In unrealised galns Unrealiscd gains at l Jattuary Less.. in respect to disposa]s in the yeor 4,096,108 4097,418 (801.060) {1.208,735) 3,295,048 3,08&683 1,921,831 407,425 5,216,879 4,096,ID8 42 Net gains arising on revaluation Total urtrealistd g&ins at 31 December THE CORPOIL4TION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 15 Financial commitments Operating I¢￿e.% Th¢ Corporation and its subsidiary have fi￿ncial commitments in respect of non-cancellable operating Icascs. The minimum rentals payable under these leases ar¢ as follows.. 2021 2020 Equipment Within one year Bctween one and two y¢ars 7.460 5,594 13,054 8,142 9,386 17,528 Otherfinaneial commitsnents The group and lThe Corporation had the following financial commitments at 31 D￿ember of.. Group 2021 Tbe CDrpor#tion 2021 2020 2020 Authorisfyj and contracied for.. Capital ¢KF¢ndilur¢.' BuildAnRs Capital expenditure.. Plant and equipment Revenue expenditure: Cyclical maintenance 125.648 26,0(X) 129.000 500,000 125,648 26,000 129,000 500,000 9J37 9,337 Group 2021 The Corporatlon 2021 2020 2020 Authorised bul not eontrAeted for.. Capital exp¢Thditure'. Buiidings Capital expenditure.. Plant and equipment Captial expenditure.. OffJ¢e equipmenl Capital expendittLr¢'. FixnLr¢s and fLtting8 Revenue expendituye.. Cyclical maintenance 9.614.000 53,400 4,800 129,000 94500 785,000 156.000 5.0(%) 9,614,1100 53,400 785,000 156,000 5,000 64,0(X) 94,500 64,(KJO Included in 2021 authorised but not contracted for financial commitments above is the origillal £9,600,00(￿ estimated project cost forthe planned two-ph&8e majorrefurbishment of Church House. It has been agreed subsequently to expand the scope of the prnjcct and thc total estimated cost. including conling¢ncy allowanccs of £2,500,000, has increased from £9.600,000 to £16,000,000. It is cxpected that the main works contract for this project will be signed in early June 2022. The total £16,000.000 project costs will be s¢lf-funded by The Corporation using capital raised from the partial disposal of listed investmcnts held. 43 THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (colltinued) 16 Related party transaetions All related party Iransactions between The Corporation and its trading subsidiary. Church House Conference Centre Limited, are disclosed in note 17b. Loanfacilityprowded to Church House Cortferertce Centre Limiled In 2020, in reSpOr￿ to the imm¢diale and forecast financial itnpact resulting from the COVID-19 pandemic, thc Board of directors of the charity's trading subsidiary, Church House Confemic Centre Limilcd, approached the Council to request an extension of the £500,0￿ loan facility in place at the lime. This facility had first been made available in 2011 9￿d, whi18t never ussl it was subsequently extended to 31 Decembcr 2021. After care￿1 considerdtion of the Company'8 current financial position, short-lerni plans for generdlion of revenue, measures taken by the directors to reduce costs and different operational and financial sccnarios produced to the end of 2021. the Council agreed to replace the existing loan faciLity with a new £2,000,000 loan facility to be uscd to provide short-term financial support to the Company for the period to 31 De¢¢mber 2021. The new loan facility was fomlally mad¢ available to the Company, replacing the previous loan facility, on 26 August 2020. As al 20 May 2022, the dale these fmancial statemenls were approved by the Council, ￿nSiStent with financial proj¢¢tions provided and reflecting the better than anticipated level of revenue, the company had drdwn down £1,000,000 from the loan facility. The last draw down of ￿ndS from the facility was on 25 Febnwy 2021. The Council has agreed ¢0 mak¢ a new £500,000 loan facility availableto the Company which be￿lle available upoll expiry of the £2,OIK).000 loan fa¢ility on 31 D￿ember 2021. This will provid¢ the Company with further financial support, should it be needed, during the period to 31 December 2031. The Company had not th3wn down any funds from this facility at the date these f￿￿]cIal statements were approv¢dby the Council. The Company forecasts that Iherewill be no requirement forthe facility to be used in the foreseeablc future. Any amounts advanced to the Company from the facilities accrue interest at 0.50/fj above the bank base rate until rq)aid. Thc total amount advanced, together with any interest accrued, is repayable no later than 31 Dccenther 2031, orup)n the Company giving notice of its int¢ntionto exercise the break clause containd within its Icase agreement. The Board of directors of Church House Conference Centre Limit￿, continue to monitor the current financial position, trading conditions and ￿tUre prospects monthly. The Board meets quarterly, or morc frqucnily if required, and a summary of the Company's trading and financial position is provided for consideration at each Council meeting. O¢her PeI￿edParty iran5acfion5 There were no other rclated party transactions during the year that require disclosure (2020- none)- THE CORPORATION OF THE CHURCH HOUSE AND ITS SUBSIDIARY Notes to the financial statements for the year ended 31 December 2021 (continued) 17 Trading 5ubsidiary- Church House Conference Centre Limited 2021 2020 a) Summary of re8uItg of tradlDg svbsldiary Tumover Operating costs Operating (loss) Coronavirns Job Retention Scheme grants Bank int¢r¢st rrfeivable Interest payable Profit on dispo9#1 of f]xed assets (Loss) on ordlnary actlvides before taxation Taxation (Loss) for the flllancial year 2.276,848 1,006,676 {2,514,983} (2,543,748) (238.135> (1,537,072) 34,671 113,301 115 1,346 (S,803) 1628) 555 (209,152) (1,422.498) 11,940 (209,152) (1,410,558) Payments under deed of eovenant Provision for payment under deed oEcovenant Movement In (accumulated losses) for the ye*r (2119,152) {1,410,5581 b) Inter ￿Ollp trangactlong Turnover Less: sales to Th¢ Cowration N¢t tumov¢r 2,276,848 11,235) 2,275,613 1,006,676 (4,424) I,002,252 Operating costs Legs: sales from The Coryorati¢)n t£s$: rent and s¢rvice charge pald ts) The Co4)oration Net operating Costs 2,514,983 (4,756) (9119J14) A,61)0,913 2.543.748 (12,586) (974.9011 1.556,261 c) flet Illabllltles) of tradlng subsidiary Totsl a￿ets Total liabilitic8 Net Olabllltles) 1,454,744 (2,256.838) 1802,1194) 389.856 (982.798) (592,942) 45