THE COPPOPATION OF TrIE CHURCH HOUSE THE CORPORATION OF THE CHURCH HOUSE Annual report and accounts Year ended 31 December 2024 Registered charity number: 213252 Contents Pages Chairfs report Report of the Council 4-11 Independent auditorfs report 12-15 Financial statements 16-36 Consolidated statement of financial activities 16 Consolidated balance sheet 17 Consolidated statement of cash flows 18 Notes to the financial statements 19-36 Legal and administrative information 37 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Chairfs report to the members of the Corporation of the Church House Overview 2024 saw much progress with the completion of the first phase of our major refurbishment programme and the start soon after of the second phase despite a change in contractors as we endeavoured to control programme costs. The Corporation has funded the project thus far from reserves and operating surpluses and the new contractor appears to be likely to deliver a very high-quality product within the agreed costings. We can be reasonably certain that, since the works are at advanced stage, there will be no more unexpected structural costs or delays. This will mean that the second phase of the works will be completed by the summer of 2025, the Corporation having incurred no external borrowing to date. although contingency funding is available, and may be required, during the period when the new Spaces are let, and rent-free periods are expected to apply. The conference centre business continued to perform very strongly and won the prestigious award of the Best Conference Venue at the London Venue and Catering Awards ceremony. Repeat business is significant, there being a good mix between new clients and existing ones. Various imaginative plans from the marketing team to build on thi5 growing reputation have been approved by the conference centre board and the trustees. The trustees are unlikely to be able to support national projects for the common good until 2026. Given successful lettings during 2025, we anticipate that this grant making will be substantially higher than was possible previously, when it is reinstated. Carbon neutrality We remain committed to be net zero carbon by 2030, building on the continuing innovative solutions to the refurbishment project led by our architects. Additionally, we are now looking at how to change the way the building is heated. One innovative solution which is under review is the SWAN district heat network proposal which is supported by the UK department for energy security and net zero IDESNZI. Both the gas and electricity used at Church House are certified green, however gas can never be totally clean and will not allow the building to be net zero in 2030. The SWAN project is a London District heating network that aims to provide sustainable heat using energy sources such as waste heat from the Thames and the London underground. The trustees support this project, but the commercial viability of it remains to be assessed. Our staff We continue to pay attention to the well-being, training and morale of our staff. A staff survey completed at the end ofjanuary 2025 showed continued high scores. There were some learning points which will be acted upon. 94% of staff are very satisfied or 5atislied with their roles. Amongst the events which were put on was a day involving puppies by Paws at Work a mental health focused well-being company this was well received. We revamped our staff break room focusing on colour and texture that is supportive of rest and welcome REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS We have strengthened our finance team with the appointment of a Director of Finance. Caroline Hibbs took up this new appointment in January 2025. She brings a wealth of relevant experience. Our building A review of the usage of utilities shows that the use of electricity shows an IIOA reduction from the 2019 baseline. Water consurnption has also reduced significantly largely due to the installation of waterless urinals. We have continued to pay attention as well to our sustainability. Tenants staff neighbours and trustees were interviewed to contribute to a gap analysis. We will roll out targets and goals for each section as part of our net zero journey. In December 2024 we had our third independent health and safety risk assessment, the summary stated "a great commitment towards health and safety methods.... There are generally good control and prevention measures in place for health and Safety" Our contractors are independently inspected monthly for compliance. Trustees Andrew Penny completes his term of trustee at the July 2025 Annual General Meeting. We are very grateful to him for his wise advice. He was our safeguarding lead, a member of the Art committee, Audit Committee and a trustee for ten years. We welcome the Venerable Darren Miller as a trustee nominated by the General Synod. Finally, it is remarkable amongst all of the uncertainties of the building project, that staff morale remains high. The trustees are all very grateful for the way so many people have responded to this challenge. We do particularly want to thank Stephanie Maurel and her senior team for their resilience and commitment to the business and to our tenants and conference users for their forbearance on occasions when changes in plan have had to be made at the last minute. We have no doubt that the end result will make this all very worthwhile. Stephen Barney Chair of Trustees REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Report of the Council of The Corporation of the Church House The Council is pleased to present its annual report for the year ended 31 December 2024. Objects and activities The primary object of The Corporation of the Church House, as laid down in its 1888 Royal Charter, is to own and maintain a building, Church House, for the use of the National Church Institutions of the Church of England INCIs1. Following amendment of the Royal Charter in February 2018, the Corporation is now permitted to award grants for the benefit of the Ncls. The Corporation may manage such business a5 It thinks fit and expedient to undertake for the promotion of the objects of the Corporation. The Corporation 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 when compared to the costs of equivalent commercial property. The rent reflects an appropriate annual share of the governance costs and provides funds to be used towards the cost5 of future refurbishments and improvements to the building. The Corporation is also able to market any remaining office accommodation on a fullv commercial basis. The Corporation seeks to generate income from the operation of its wholly owned commercial subsidiary, Church House Conference Centre Limited. The company markets the meeting rooms and event space provided by the building (whose listed status precludes radical alteration) to a range of businesses and organi5ations when these are not required for use by the General Synod. Clients include commercial companies, charities, church organisations, government bodies, trade associations and research organisations. The company covenants its taxable profits to The Corporation. Since the 2018 amendment to its objects for the provision of financial support when funds allow to the National Church Institutions through the award of grants, the Corporation has awarded a total of five grants to the National Church Institutions, amounting to £8.26m. The current major refurbishment programme which represents a significant linancial commitment, has been in progress since June 2022. and no grants have therefore been awarded during this period. The Corporation's primary objectives for the year under review were focussed on ensuring that the security of the building continued to be maintained, and that Church House continued to offer a safe and available workspace for the benefit of the National Church Institutions and our commercial tenants while the refurbishment programme continues. REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Review of achievements and performance for the year In reviewing its aims and objectives and in planning its future activities, we confirm the Corporation has complied with the Charity Commission's general guidance on public benefit: 'Charities and Public Benefit,. Operational performance The National Church Institutions remain one of the principal tenants of our building, although they now occupy a significantly reduced footprint. The first phase of our major refurbishment programme was successfully completed in September 2024 and the second phase commenced in October 2024 with a target completion date of August 2025. The ongoing refurbishment works has therefore continued to disrupt both our rental revenues and our trading subsidiary revenues for a further year. We have continued various good will compensations for noise and disturbance to our tenants as a result. All facilities and services were maintained at appropriate leve15 and operated well throughout the year. Grant-making policy The Corporation will from time to time accept grant applications from the National Church Institutions dependent upon the financial performance ofThe Corporation. However, in view of the ongoing refurbishment project, no grants were awarded in 2024. Financial review The charity's principal sources of income are property rents and covenanted profit from it5 trading Subsidiary, Church House Conference Centre Limited. Following the liquidation of its sizeable investment portfolio in 2023 in order to linance the building refurbishment programme, the Corporation's financial performance is not currently supported by an investment income stream. We have posted a net expenditure position this year of £723.4k12023.' £405.6k net expenditure), representing a £1.09m net expenditure position for the Corporation and a net profit of £366.6k from its trading subsidiary. Group income rose by 16% while costs also rose by 160A, in part due to a doubling to £989k in the property depreciation charge 12023=£478kl following the completion of phase one of the refurbishment programme. No grants were awarded in the year12023: nill. Total reserves decreased by 3°A to £23.6m at 31 December 202412023= £24.3ml. Group tixed assets increased by a further 20% as the refurbishment programme continues to progress, debtors rose by IO% while current liabilities reduced by 9% and group cash holdings decreased by 68% as funds were drawn down in support of the refurbishment works. The group current ratio has decreased from 2.79 in 2023 to 1.49 in 2024. Church House Conference Centre Ltd The financial statements consolidate the results and financial position of the Corporation's wholly owned subsidiary, Church House Conference Centre. The company REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS has delivered a profit of £366.6k for the year, representing a 113% improvement on the previous year12023:£172.4kl. While trading performance has continued to be disrupted by the refurbishment works programme, the company ha5 been very successful at retaining existing clients during this period and is attracting new business at a highly positive rate, with turnover rising by 19°A to £5.25m12023.' £4.42ml. Forward plan and financial outlook The Corporation's primary objective is to provide and maintain efficient office accommodation space for the National Church Institutions of the Church of England, and to manage running costs on a cost effective and sustainable basis. The Corporation continues its programme of works which commenced in 2020, to achieve permanent carbon net zero status by 2030. The major refurbishment programme being undertaken is modernising and upgrading available office accommodation to strengthen the Corporation's commercial letting opportunities and increase rental revenues substantially. The capital works have also incorporated a number of changes that support the Corporation's aim of operating a carbon net zero building by 2030. The estimated cost of the capital programme stands at £24.6m. The Council is confident that the refurbishment will secure the long-term viability of the Corporation and will, ultimately, provide additional funds that can be invested for the long term and provide further opportunities to support the mission of the Church of England through continued grant-making. Reserves The reserves of the Corporation are primarily unrestricted reserves, held to meet the primary charitable objective of the Corporation which 15 to own and maintain the building called Church House for the use of the National Church Institutions of the Church of England. The unrestricted reserves represent the accumulated surpluses generated from the group's charitable and trading activities and are funds that are available for use at the discretion of the trustees. The reserves comprise fixed asset funds, designated funds and free reserves. Free reserves consist of the general reserve and the non-charitable trading fund. The Corporation has a small, restricted fund held for artwork restoration and installations. The group's total funds stood at £23.6m at 31 December 202412023.. £24.3ml. Fixed asset funds represent the funds invested in fixed assets that the trustees consider essential in enabling the Corporation to implement its building management strategy. The fund represents the net book value of unrestricted tangible fixed assets and amounts to £22.15m12023: £18.53ml. Designated funds included a property refurbishment reserve set up to meet the anticipated costs of the refurbishment programme and a grant-making reserve set up to meet the cost of grant awards. These funds totalled £3.48m at the start of the year. Both designated funds have been fully utilised in 2024 in order to meet the refurbishment cost arising in the year. Free reserves stood at £1.4m at the end of the year 12023: £2.19ml. reflecting the need to contribute £1.38m of general reserves towards the yearfs £4.89m refurbishment and other asset additions. The group's free reserves are typically represented by its investment and cash holdings. With the divestment of the investment porrfolio in 2023 to finance the capital works, its reserves are backed solely by its cash holdings,. these stood at £2.25m at 31 REPORT OF THE COUNCIL December 202412023.. £7.09ml. 2024 ANNUAL REPORT & ACCOUNTS The Council of the Corporation remains focussed on the longer term objective of delivering financial sustainability through the successful completion of the refurbishment programme funded primarily from unrestricted reserves. In March 2024, the Corporation secured a financing facility through Charity Bank of up to £lm to support operations as required during the final phase of the refurbishment programme. When undertaking its annual review of free reserves, the Council determined that the present level combined with the loan financing facility remains sufficient to meet operational needs. The reserves policy will be reviewed following completion of the capital programme. Fundraising The Corporation does not actively engage in fundraising activities and does not employ a professional fundraiser or commercial participator. No complaints in respect to fundraising activity were received by the Corporation during the year. Investment policy The Corporation's investment policy is one of a long-term investment horizon and medium risk in order to deliver a balance of income and capital growth from its investments. The Council of the Corporation gives its investment managers discretion to manage the portfolio within an agreed risk profile. It is the Council's policy to take note of the guidance of the Church of England's Ethical Investment Advisory Group. The purpose of the Corporation's investment policy and portFolio is to build capital over the long term in order to provide the financing for the periodic improvement and refurbishment of Church House. The Corporation's investment portfolio 15 managed in such a way that the value of the investments more than matches inflation over the longer term, and given the investment horizon. that the portfolio is weighted substantially in UK and overseas equities. In 2021, the Council approved the divestment of the Corporation's investment portFolio in order to provide the financing for the current refurbishment programme, which commenced in 2022, and which had an estimated cost of £24.6m. The portfolio was fully divested in 2023. Investment performance All listed investments were sold during 2023 to support the refurbishment project. Investment income earned in 2024 was therefore only in respect of interest earned on cash holdings of £112.5k12023: £387.4kl. Risk management The Council has identified and reviewed the major risks to which the Corporation and its subsidiary are exposed, in particular those relating to their operations and finance with particular reference to the refurbishment of the building. The Council is satisfied that systems are in place to mitigate the Corporation's exposure to these major risks. The primary risks faced by the Corporation and Church House Conference Centre Limited are those that would significantly disrupt the availability and operation of the building. The Corporation and its subsidiary company have comprehensive policies of insurance. reviewed annually, that provide financial compensation for many such occurrences. REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Above all, the Corporation has a business continuity plan that enables it to maintain and recover its operations in the event of signiticant disruption. The Corporation's ability to fund improvements to Church House has been tested by the increasing costs of the refurbishment programme. Completion of the programme may require recourse to some external borrowing although this will be minimised by maximising intra-group borrowing. The Board of directors of Church House Conference Centre Limited continue to monitor the company's financial position, trading conditions and market prospects. Structure• governance and management The Corporation of the Church House I'the Corporation'l was established by Royal Charter in 1888 to own and maintain a building, Church House, for the use of the National Church Institutions of the Church of England INCISI. The Corporation is a registered charity Ino. 2132521. The affairs of the Corporation are regulated by its founding and subsequent charters. The most recent of these charters was granted in February 2018, and prior to that in November 2002. The February 2018 charter permits grants to be awarded for the benefit of the National Church Institutions of the Church of England. The Corporation of the Church House comprises the Corporation and its wholly owned subsidiary, Church House Conference Centre Limited, whose principal activity is that of providing and managing a conference venue within the building. The company is registered in England and Wales Ino. 028692201, and trades under the name Church House Westminster. Trustees The Council of the Corporation comprises nine trustees. The Chair, and Deputy Chair and Treasurer, are elected from amongst the members ofthe Corporation by the members of the Corporation, namely members of the General Synod and a small number of long standing members. three members are nominated by the Appointments Committee of the Church of England and four members are co-opted by the Council. This structure was put in place following resolutions carried at the 2008 Annual General Meeting with requisite approval of the Privy Council and the Charity Commission. Each member is appointed for an initial term of five years, renewable for a further term ofthe same length. Every member of the Council must be and continue to be a member of the Church of England. Elected trustees Chair Stephen Barney Hywel Rees-jones Treasurer & Deputy Chair Nominated trustees Helen Ainsworth Keith Cawdron luntil 24 July 20241 DrJustineAllain Chapman Ven Darren Miller (from 21 November 20241 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Co-opted trustees James Bryer Keith Cawdron Ifrom 25 July 20241 Josile Munro Andrew Penny (to 23 February 20251 Church House Westminster Board of dirertors Peter Thackwray Hywel Ree5-Jones Mary Griffiths Dr Michaela Jordan Chair, Non-executive Non-executive Non-executive Non-executive Governance Members of the Council, as the Corporation's trustees, have responsibility for the overall direction and management of the Corporation and its subsidiary. All new Council members are given an induction in the policies and operations of the Corporation and its subsidiary and are provided with Charity Commission guidance on the roles and responsibilities of trustees. The trustees are aware of the Charity Governance Code published in 2017, which sets out the principles and recommended practice for good governance within the sector. The trustees are committed to maintaining high standards of governance and are satisfied that the Corporation applies the principles of the Code within its current governance arrangements. Committees of the Council Audit Committee Chair Stephen East Andrew Penny Ito 23 February 20251 Manoharan Dilukshan Council representative Ex-officio Ex-officio Kevin Rodrigues Investment Committee Chair Hywel Rees-jones james Bryer Andrew Penny Ito 23 February 2025 T Clark Council representative Council representative Ex-officio Remuneratlon Committee Chair Stephen Barnev Hywel Rees-jones Helen Ainsworth Treasurer & Deputy Chair Council representative The Audit Committee has an independent Chair, at least one independent member and one member co-opted from the Council. The Committee meets at least twice a year and is responsible for overseeing and monitoring the Corporation's external audit arrangements and risk management systems. The Remuneration Committee was set up in February 2024 with delegated authority from the Council to approve the annual staff bonus award. REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS The Council delegate5 to the Secretary and Chief Executive of the Corporation responsibility for the day-to-day management of the Corporation, and, through the Board of directors, of Church House Conference Centre Ltd. The Secretary and Chief Executive delegates management of specific functions to members of the senior leadership team, comprising the Chief Executive, the Head of Facilities, the Head of Venue Operations, and the Director of Finance. Key management personnel Secretary and Chief Executive Head of Facilities Head of Venue Operations Head of Finance Director of Financ Stephanie Maurel Hugh Allcock-Green Vedrana Dancerelle Phoebe Akushie Ito 24 December 20241 Caroline Hibb5 (from 6 January 20251 10 REPORT OF THE COUNCIL Statement of the Council's responsibilities 2024 ANNUAL REPORT & ACCOUNTS The Council is responsible for preparing the Report of the Council and the financial Statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Council to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the group and the charity and of the income and expenditure of the charity and the group for that year. In preparing these financial statements, the Council is required to- select suitable accounting policies and then apply them consistently. observe the methods and principles of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. make judgments and estimates that are reasonable and prudent. state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the charity will continue in business. The Council is responsible for keeping accounting records that are sufficient to show and explain the group and charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements 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 of the group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Council is responsible for the maintenance and integrity of the group and the charity financial information included on the group and the charity's websites. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved and signed on behalf of the Council on 12 June 2025. Stepkgh 14. Hywel Rees-jones Stephen Barney Chair Treasurer and Deputy Chair REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Independent auditor's report to the Council of The Corporation of the Church House Opinion We have audited the accounts of The Corporation of the Church House Ithe 'parent charity'l and its subsidiary (collective referred to as the 'group'l for the year ended 31 December 2024 which comprise the consolidated statement of financial activities, the parent charity and group balance sheets, the consolidated statement of cash flows, principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion, the accounts- give a true and fair view of the state of the group'5 and of the parent charity's affairs as at 31 December 2024 and of their incoming resources and application of resources for the year then ended have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditorfs responsibilities for the audit of the accounts section of our report. We are independent 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the accounts, we h3ve concluded that the trustees, use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report, including the Council's report, other than the accounts and our auditor's report thereon. The Council members are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and we do not express 12 REPORT OF THE COUNCIL any form of assurance conclusion thereon. 2024 ANNUAL REPORT & ACCOUNTS Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the trustees, report is inconsistent in any material respect with the accounts,. or sufficient accounting records have not been kept by the parent charity,. or the parent charity accounts are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. Responsibilities of the Council As explained more fully in the Council's responsibilities statement, the Council members are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the Council members determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the Council Members are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group orthe parent charity orto cease operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the accounts We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be 13 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS expected to influence the economic decision5 of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non- compliance with applicable 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. We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011. Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland IFRS 1021 leffective l January 20191 and those relating to health and safety legislation- and We assessed the extent of compliance with the laws and regulations identified above through making enquiries of key management and review of minutes of Council members, meetings. We assessed the susceptibility of the charity's tinancial statements to material misstatement, including obtaining an understanding of how fraud might occur, by- Making enquiries of key management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and Considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we- Performed analytical procedures to identify any unusual or unexpected relationships. Tested and reviewed journal entries to identify unusual transactions. Tested the authorisation of expenditure. Assessed whetherjudgements and a55umptions made in determining the accounting estimates were indicative of potential bias,. and Investigated the 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 statement disclosures to underlying supporting documentation. Reading the minutes of meeting5 of Council members- and Enquiring of as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures 14 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS required to identify non-compliance with law5 and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if anv. Material mi55tatementS that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinion5 we have formed. Buzzacott Audit LLP Statutory Auditor 130 Wood Street London EC2V 6DL Date: 18 June 2025 Buzzacott Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 15 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Consolidated statement of financial activities for the year ended 31 December 2024 2024 2023 Notes In¢ome from 5a 3,081.437 2,395.639 Trading attivities 5b 5,247,1 4,415,282 Investment Income 5£ 112,526 387,362 Other income Sd 13,884 106,687 Total Income 8,454,947 7,304,970 Expenditure on Raising fund5 32,811 6b 3,961,932 3,420,424 Tr3ding activities 3,944,057 3,380,630 Other expenditure 1,272.340 1,079,759 Total expendlture 9,178,329 7,913,624 Net lexpenditurel before investment gain5 1723,3821 1608,6541 Nèt gains on investments 203,056 Net movement in funds in the year 1723,3821 1405,5981 Fund balances brought forward at I january 15 24,302,449 24,708,047 Fund balances (arried forward at 31 December 15 23,579,067 24,302049 All the group's activities derived from continuing operations during the above two financial periods. The statement of financial activities includes all gains and105ses recognized in the year. All group income and expenditure were unrestricted during the above two linancial periods except for expenditure of £65k for the year ended 31 December 2024 and income of £99k in the 2023 year. The notes on pages 19 to 36 form part of the financial statements. 16 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Consolidated balance sheet as at 31 December 2024 2024 2023 fjrovp Corporation fjroup Corporation Note5 FIMed ass@t5 22.148.488 21.621.135 18.531.478 18.115.818 Investments io s￿,0 1,524 501,524 Totsl fixed assets Z2,148A 2Z.IZI.135 18.533.ri)z IB.617.34Z Current a55et5 2.099.159 1.740.298 1.gJO.866 2.234.451 Cash at bank 2,246,915 1,198,515 7,087,950 5,762,291 Total ￿￿ent￿$Set5 4,346W74 2.938,813 8.988.816 7.996.742 Creditor5'. afflounts falling due within One year 12 11.569,2911 13.219.369) 12,Da3.4931 Net current assets 1,430,579 1.369,S22 5.769.447 5.963.249 Net assets 23,579￿67 13,490,657 24.302,449 24,580,591 FU￿d9 Fixed asset fund 22,148,488 21,621,135 18,531,478 18,115,819 Property refubishment reserve 2.340.890 2.340.890 Grant-mèking reserve 1.135.617 1,135,617 Non charit3bl2 trading reserves 88,410 1278.1421 1.298.915 1.826.268 2.464.352 2.880.011 Total unrettritted fvnds Is 23,535,813 23,ty17,403 24,194,1gS 24A72,337 Restrirted fvnd5 15 43254 43,254 lQ8.254 108.254 Totsl funds 23,579￿67 23,490,657 24.302,449 24,580.591 The ff nancial statements which comprise the consolidated statement of financial activities, the consolidated balance sheet, the consolidated statement of cash flows and the related notes on pages 19 to 36 were approved by the Council on 12 June 2025 and signed on its behalf by Stephen Barney Member of Council and Chair of Council Hywel Rees-jones Member of Council, Treasurer and Deputy Chair Stephanie Maurel Secretary 17 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Consolidated statement of cash flows for the year ended 31 December 2024 Total Funds 2024 2023 Netcash (used inl1pro￿ded byoperatinKacti￿tles 165,7351 222,946 Cash flow5 from investing actmties.. Dividends. interest and rent5 from inve5tment5 112,526 387,343 Purchase of property. plant and equipTnent 14.889.350> 113.537.4941 Proceed5 from 5alp of inve5tmpnt5 1.524 8.296,478 Purrh¥se of investments Net rash lused Im) Inve$tlngartlv￿Ie$ I4,775,3￿> 16,048,950) Chan8e In cash and cash e4ulvalents In the reportln8 perlod 14,841,045> 15,825,954) Cash and r'. Depretiation tharEes 1.272,340 573,458 IGalnsl on investments 1203,0561 Dividends, Inierest and renis from investmenis 1387,3621 Loss on sale of fixed assets 587,225 1198,2931 98,351 1303,8741 140,0721 Net cash (used inl1pro￿ded byoperatingacti￿tles 165,7351 222,946 B. Analy515 of ￿5h and cash equivalent5 Cash at bank 442,416 1.924.943 Cish held with investment managers 1.804.499 5.L63.fy)7 T￿•1 ¢ash and ¢ash equl¥8lents 2.246,915 7.087.950 18 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS Notes to the financial statements for the year ended 31 December 2024 l. Charity information The Corporation of the Church House was established by Royal Charter in 1888 and is a registered charity in England and Wales Icharity no. 2132521. 2. Basis of preparation The financial statements have been prepared under the historical cost convention, as modified by the revaluation of listed investments, and in accordance with the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities120191 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" effective l January 2019, and the Charitie5 Act 2011. The Corporation constitutes a public benefit entity as detined by FRS 102. The financial statements consolidate on a line-by-line basis the financial statements of the Corporation and its subsidiary undertaking, Church House Conference Centre Ltd Icompany no. 028692201. Intergroup transactions are eliminated on consolidation. Church House Conference Centre is a private limited company incorporated in England and Wales. 2.1. Going concern The Council members have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Council members have made this assessment in respect of a period of one year from the date of approval of these financial statements. The Corporation commenced a major refurbishment programme in June 2022 to secure the long-term viability of Church House. This programme is expected to be completed by August 2025 and will provide the opportunity to rebalance the tenant portFolio away from National Church Institutions towards commercial tenants. This is expected to increase future rental income. The directors of Church House Conference Centre Ltd are cautiously optimistic that the company will meet its revenue target for 2025. During 2024 the company has continued to build back its business following the five month closure of the conference venue in 2023 during the first phase of the refurbishment programme. Trading levels have continued to be disrupted to some degree in 2024, but the company is seeing encouraging growth in both retained and new business and the upward trend in sales is expected to continue as investment is made in business development. The trustees are satisfied that the Corporation is in a position to manage effectively its operational and financial risks. The trustees consider that it is reasonable to expect that the Corporation has adequate resources to continue in operational existence for the foreseeable future and therefore support the going concern basis in preparing the annual accounts. 19 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS 3. Critical accounting estimates and key sources of estimation uncertainty Preparation of the financial statements may require management to make judgements and estimation5 in the process of applying the Corporation's accounting policie5 that have a significant effert on the carrying amount of assets and liabilities in the accounts. The nature of judgement and estimation means that actual outcomes may differ from expectation and may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. No judgements other than those involving estimations have been made by management in the process of applying the Corporation's accounting policies in the preparation of these statements. Significant areas of estimation in respect of the financial statements to 31 December 2024 are set out below.. determination of useful economic lives for fixed asset items for the purposes of determining the annual depreciation charge determination of the recoverability of outstanding debtors estimation of accrued expenditure estimation of future income and expenditure flows for the purpose of assessing going concern 4. Principal accounting policies 4. 1. Income Income is recognised in the period in which the group is legally entitled to the income, where the amount can be measured reliably, and it is probable that the income will be received. Income comprises rental income, investment income, income generated by the Conference Centre activities and other income including management fees. 4.1. l. Rental income is recognised when it becomes contractually due under the relevant lease or tenancy agreement. 4. 1.2. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. 4.1.3. Interest on cash balances held with banks and investment managers are included when receivable and the amount can be measured reliably by the group,. this is normally upon notification of the interest paid or payable by the bank or the investment manager. 4.1.4 Income generated by the Conference Centre activities comprises income from room hire, equipment hire and commission on catering provision. It is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. 20 REPORT OF THE COUNCIL 2024 ANNUAL REPORT & ACCOUNTS 4.1.5. Other income including management fees and dilapidation receipts 15 measured at fair value and accounted for on an accruals basis. 4. 2. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation commithng the group to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and inclusive of irrecoverable VAT. Expenditure comprises direct costs and support costs. All expenses, including support costs. are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows.. cost of raising funds includes investment management fees and the operating costs of Church House Conference Centre Limited. charitable expenditure represents all costs associated with furthering the charitable purposes of The Corporation. This includes the direct and indirect costs of running Church House and grant-making activities. The allocation of costs to charitable activities, including support costs, is based upon the calculation of the service charges recoverable from The Corporation's tenants. other expenditure includes losses on the disposal of tangible fixed assets. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are treated as liabilities. No grants were approved during the year. 4. 3. Taxation The Corporation is registered as a charity incorporated by Royal Charter and as such is exempt from taxation on its income and gains to the extent that they are applied for its charitable purposes. The Corporation's wholly owned subsidiary, Church House Conference Centre Ltd, is liable to corporation tax, but all retained profit earned on its trading operations is gifted each year to the Corporation. 4. 4. Tangible fixed assets Freehold land is stated at historic cost and is not depreciated as it is considered that its value is not impaired by the passage of time and therefore has an unlimited useful life. Property refurbishment works which are not completed at the year-end are shown as 'Assets in the course of construction, and are not depreciated until they are brought into use on practical completion, at which point they are transferred to the appropriate asset category. In accordance with Section 17 of FRS102 (Property, Plant and Equipment), all fixed assets are measured at cost at initial recognition. Each fixed asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Fixed assets are 21 REPORT OF THE COUNCIL reviewed for impairment on an annual basis. 2024 ANNUAL REPORT & ACCOUNTS All assets are depreciated over their useful lives using the straight-line method and the annual depreciation charge in recognised under Other expenditure in the statement of financial activities. The depreciation measures are set out as follows: Freehold property assets are depreciated over periods of 10, 15 and 30 years Plant and machinery are depreciated over periods of 5, 10, 15 and 20 years iii. Fixture and fitknngs assets are depreciated over periods of 5, 7 and 10 years iv. Computer and other equipment is depreciated over periods of 3. 5. 7 and 10 years 4. 5. Heritage assets Heritage assets have historic, artistic, scientific, technological, geophysical or environmental qualities and are held and maintained principally for their contribution to knowledge and culture. The Corporation holds a collection of heritage assets which consist mainly of paintings. These paintings, gifted to The Corporation over many years, represent various aspects of Church heritage and, therefore, relate to the objects of the charity. No value has been attributed to these heritage assets in the balance sheet on the grounds that the trustees consider there is no reliable method of establishing an accurate linancial value. The Corporation had commissioned a professional valuation of these paintings for insurance purposes- this had indicated a wide range of potential values that could be attributed to these assets. A triptych painting and a modern art installation were purchased in 2024 at a combined cost of £65k. The painting costing £30k has been accounted for as a capital item. 4. 6. Investments Realised gains lor losses) on listed investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains lor10ssesl are combined in the statement of financial activities and are credited lor debited) in the year in which they arise. The investment in the subsidiary undertaking is stated at cost less any provision for permanent diminution in value. 4. 7. Debtors Debtors are recognised at their settlement amount, less any provision for non- recoverability. Prepayment5 are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. 22 REPORT OF THE COUNCIL 4. 8. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of le55 than three months from the date of acquisition. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. 2024 ANNUAL REPORT & ACCOUNTS 4. 9. Creditor5 and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount ofthe settlement is known or can be estimated reliably. Creditors and provisions are recognised at the amount the group or charity anticipates it will pay to settle the debt. 4. 10. Post-employment benefits The Corporation participates in the Church of England Pension Builder Scheme IPBSI, which is part of the Church Workers Pension Fund ICWPFI. The scheme is administered by the Church of England Pensions Board and is a defined benefit pension scheme. The trustees are satisfied that the scheme provided by the Church of England Pensions Board meets the delinition of a multi-employer scheme, whereby participating entities are not under common control. Where an employer has entered into an agreement with a multi-employer scheme that determines how the employer will fund a scheme's deficit. FRS 102 requires that the employer recognizes the liability for the contributions payable in relation to the deficit and the resulting expense in the income and expenditure account. The assets of the schemes are not attributed to individual entities and a scheme-wide contribution rate is set. The Corporation is therefore exposed to actuarial risks associated with other entities, employees and is unable to identify its share of the underlying assets and liabilities of the schemes on a consistent and reasonable basis. The Corporation is therefore required under Section 28 of FRS 102 (Employee Benefits) to account for these schemes as if they were defined contribution Schemes. The amount charged to the income and expenditure account represents the contributions payable in respett of the accounting period. The present value of any expected deficit recovery contributions is recognized as a liability at the balance sheet date. The liability is reviewed annually taking into account any changes to the deficit contribution rate or the implicit rate of interest used in discounting the liability. Further details of pension scheme arrangements are given in note 13. 4. 11. Leased assets Rentals payable under operating leases where the benefits and risks of ownership remain substantially with the lessor are charged to the statement of financial activities on a straight-line basis over the lease term. The group had no finance leases during the year ended 31 December 2024 or 31 December 2023. 23 REPORT OF THE COUNCIL 4. 12. Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of the Corporation's charitable objectives. They comprise free reserves, designated funds and fixed asset funds. 2024 ANNUAL REPORT & ACCOUNTS Free reserves represent those funds which are freely available for application towards achieving any charitable purpose that falls within the group and charity's charitable objects. Non-charitable trading funds comprise of the value of cumulative accumulated retained earnings or losses by Church House Conference Centre Limited. Designated funds are unrestricted funds that have been designated by the trustees to be applied for specific purposes in the future. Fixed asset funds represent the net book value of the unrestricted tangible fixed assets, and the trustees consider that these assets are essential to the implementation of the Corporation's operational strategy. Restricted funds represent funds that have been given for specific purposes to be expended in accordance with these purposes. The designated refurbishment reserve was established in 2018 to ring-fence funds for future refurbishment and improvement works in support of its primary charitable objective of maintaining Church House for the use of the National Church Institutions of the Church of England INCISI. £IOm of fund5 were designated to this reserve at 31 December 2021 ahead ofthe refurbishment programme which started in 2022. These funds were fully drawn down during the 2024 year. The designated grant-making reserve represents the value of funds designated and available for distribution to the Ncls in the form of grants to support the charitable objectives of the Church of England. The trustees approved for this fund to be fully drawn down in 2024 to support the cost of the refurbishment work. It Is anticipated that a further allocation of reserves will be made to this fund once general reserves have been adequately replenished by increased revenues in future years following completion of the refurbishment project in 2025. 24 REPORT OF THE COUNCIL 5. Income 2024 ANNUAL REPORT & ACCOUNTS 2024 2023 Income from.. 5a. Charitable artivities Property rental income 1,720.936 1,286,859 Property service charge income 1,360,501 1,108,780 Total 3,081,437 2,395,639 5b. Tradin8 activities Income frorn taxable trading 5,247,100 4,415,282 Total 5.247,100 4.415.282 Sc. InvestmÈnt income Investment portfolio income 290,737 Interest receivable 112,526 96,625 Total 112,526 387,362 Sd. Other income Managernent fees receivable 5,333 6,687 Other income 8.551 ioo,o(x) Total 13,884 106.687 Income Total 8,454,947 7,304,970 25 REPORT OF THE COUNCIL 6. Expenditure 2024 ANNUAL REPORT & ACCOUNTS 2024 2023 Expenditure on.. 6a. Raising funds Investment mBnagetnent fees 32,811 Total 32.811 6b. Charitable activities Staff costs 962,900 964,811 Cleaning services 309.973 290.338 Utilitie5, insurance and rate5 776,593 716,273 Property maintenance works 620.508 462.439 Security & reception services 653,606 385,054 Professional fees 340.502 312.841 Audit fees 55,320 31,658 Other charitable expenditure 242,530 257,010 Total 3,961.932 3,420A24 6¢. Other trading a¢tivitles Taxable trading expenditure 3.944.057 3,380.630 Toial 3,944.057 3,380.630 6d. Other expenditure Property depreciation charge 989.477 478.539 Other depreciation charges 282,863 9,710 Loss on disposal of fixed assets 585,417 InterÈst payable 6,093 Total 1,272.340 1,079.759 Total expenditure 9.178.329 7.913.624 Audltors, remuneratlon Auditor lees- parent charity 55,320 16,302 Auditor fees- Churth House Westminster 31,324 15,356 Auditors non-audit lees 3,297 Total 89,941 2024 audit fees include an under-provision for the 2023 year of £34,850, comprising £24,395 in respect of the parent charity and £10,455 in respect of Church House Westminster. 26 REPORT OF THE COUNCIL 7. Employee information 2024 ANNUAL REPORT & ACCOUNTS 2024 2023 Group Corporation Group Corporaiityn Salaries attd wages 1.747,985 864.202 1.475.520 7S2.347 187.749 98.698 160,037 87.449 Pension costs 163,241 95,015 Total 1,935,734 962,gDJ 1,791798 984WI Redundancy, termination payments arisingfrom restructurii The average nurnberof 5taffernployed ljythe CorporatlDn and it5 5ub5idary 2024 Staff se¢onded full time to Church House Westminster 19 19 35 33 At 31 De£ernber the nurnber of ernployee5 whose emDlumentsex