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2022-06-30-accounts

The Queen Victoria Clergy Fund COUNCIL’S REPORT For the year ended 30 June 2022

THE COUNCIL OFFICERS AND ADVISERS

COUNCIL

Canon Peter Bruinvels, Chairman Anthony Allwood, ( Deputy Chairman from 8 February 2022) John Brydon (appointed 8 February 2022) Rosemary Lyon Canon Robert Perry (appointed 8 February 2022) Mary Talbot (appointed 8 February 2022)

David Mills, Deputy Chairman (retired 8 February 2022)

David Ashton (retired 8 February 2022) Canon David Froude (retired 8 February 2022)

Canon Dr Adanna Lazz-Onyenobi (retired 8 February 2022)

William Seddon (retired 8 February 2022)

SECRETARY

Stephanie Maurel

REGISTERED OFFICE AND PRINCIPAL OFFICE

Church House Great Smith Street London SW1P 3AZ

REGISTERED CHARITY NUMBER 213258

MANAGERS

The Corporation of the Church House Church House Great Smith Street London SW1P 3AZ

BANKERS

Barclays Bank plc Abbey Branch 2 Victoria Street London SW1H 0ND

INVESTMENT MANAGERS

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU

AUDITORS

Lovewell Blake First Floor Suite 2 Hillside Business Park Bury St Edmunds IP32 7EA

Page 1

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2022

The Council presents its annual report and audited financial statements for the year ended 30 June 2022.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

CONSTITUTION AND OBJECTS

The Queen Victoria Clergy Fund was constituted by Royal Charter on 7 December 1897 and supplemental charters of 5 September 1924, 29 June 1942 and 19 July 2005. The registered Charity number is 213258 and its principal office is Church House, Great Smith Street, London SW1P 3AZ.

The objects of the Fund are the relief of need, hardship and distress among the clergy of the Church of England and their families and dependants, in particular (but not exclusively) by the payment of grants to the diocesan organisations with similar objects, and generally to advance religion by advancing the charitable work of the Church of England through providing material support to its clergy. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Fund’s objectives and in planning future activities and setting the grant making policy for the year.

GOVERNANCE

The membership of the Fund consists of forty-two members, one lay member being nominated to serve for five years by each diocese of the Church of England following each election of members to General Synod. At the Annual General Meeting held in February 2022, the members elected a Council of six members from amongst their number, to serve for a term of five years.

The Council wishes to record its appreciation and gratitude to the outgoing Council members who retired at the end of their terms – extended by a period of one year as a consequence of the COVID pandemic - in February 2022.

At their meetings the Council agrees the broad strategy and areas of activity for the fund, including consideration of grant making, investment and risk management policies and performance. All trustees give of their time freely and no trustee remuneration is paid. Details of trustee expenses and related party transactions are disclosed in note 16 to the accounts.

Trustee induction and training

New Council members are inducted into the workings of the Fund, including Council policy and procedures, at an initial meeting with the Secretary, and also receive a copy of the Charity Commission guidance on the roles and responsibilities of Trustees. Members are forwarded updates from the Charity Commission and details of appropriate training courses.

Professional advisors

The Council previously resolved to review the appointment of each of its professional advisors formally during each quinquennium. As reported previously, the planned review of the investment manager was completed in August 2021 and the views expressed and recommendations made, reported to the Council. at their next meeting. The Council considers that all three advisors continue to fulfil their individual terms of reference and remains satisfied that no change is necessary at this time.

Page 2

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2022

GRANT MAKING POLICY

The grant making policy aims to achieve its objects for public benefit by the relief of need, hardship and distress among the clergy of the Church of England. The Fund makes an annual block grant to each diocese (the apportionment between dioceses being decided each year by the Council of the Fund) to be allocated by the diocese in accordance with the objects of the Fund. The formula for making the annual distribution to dioceses, reviewed each year by the Council, takes into account the number of incumbencies in each diocese and the number of parishes in areas designated by the Government as experiencing multiple deprivation.

REVIEW OF THE YEAR

The charity exists for the relief of hardship among the clergy, enabling them to carry out their duties in the advancement of religion. Beneficiaries are given discretion to use the funds provided by the charity for any purpose that fulfils our charitable objects. Examples of how the charity’s funding was used during the year under review include contributions towards emergency housing repair costs, funding of medical assessments and associated treatments, assistance with counselling costs and support for respite care.

The Fund generated a total deficit in the year of £417,803 after accounting for unrealised losses on investments of £375,404. By comparison, in the year to 30 June 2021 the Fund generated a surplus of £498,231 after accounting for unrealised gains on investments of £516,926.

In the year to 30 June 2022, the capital value of the Fund’s portfolio decreased by £411,187 (2021: increased by £505,053). It is pleasing to report that the income target set for 2022 was met.

During the year, the fund distributed £165,000 (2021: £150,000) to the dioceses in furtherance of the charity’s aims. To achieve this level of distribution, and reflecting the decision reached by the Council during 2013 to adopt a total return approach, undistributed income from the previous year’s activities was supplemented by £39,000 (2021: £14,100) from the sale of investments. It is anticipated that investments of around £44,500 will be sold to meet the income shortfall in the 2021/22 financial year and to maintain the increased level of distribution. In considering the amount of capital transferred to income, the Council balances the current needs of beneficiaries with the likely needs of future beneficiaries.

FUTURE PLANS

The Council intends to continue and, if possible, increase its annual grants to dioceses to enable them to give further support to clergy in need. The Council has resolved to maintain total grant distributions in 2022/23, including the additional £15,000 awarded for 2020/21 reflecting the impact of the COVID pandemic, of £165,000.

INVESTMENT POLICY

Following a review of the Investment Policy, the Council agreed to change the composite benchmark with effect from 1 July 2021 to 7.5% ICE BofAML Sterling Corporate Bond Index; 7.5% ICE BofAML Gilts All Stocks Index; 10% MSCI AC World (ex UK) (local currency) £ Index; 40% MSCI AC World (ex UK) (Net Total Return) Index; 5% MSCI All Balanced Property Funds Index (1 Quarter lagged); 20% MSCI UK IMI (Net Return) Index; 10% SONIA +2%.

The long-term investment objective remains to achieve a total return of inflation (UK CPI) + 4% coupled with a medium-risk approach with the aim of generating sufficient levels of income and capital growth to enable the real value of grants and the real capital value of the Fund’s assets to be at least maintained.

It was also agreed that funds should continue to be invested in line with the Statement of Ethical Investment Policy issued by the Church of England Ethical Investment Advisory Group.

Page 3

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2022

INVESTMENT PERFORMANCE

Over the twelve months to 30 June 2022, the Fund's return, net of fees, was -5.0%. This compares to the ARC Steady Growth Peer Group return of -5.7% and composite benchmark return of -3.1% over the same period. The Fund’s returns over 3 and 5 years are +5.3% p.a. and +5.5% p.a. respectively. This is ahead of the peer group returns of +2.9% p.a. and +3.7% p.a. respectively, but slightly behind the composite benchmark returns, which do not include fees, of +5.5% and +5.8% p.a.. While the Fund has made a ‘real’ return in excess of inflation over three and five years, with UK inflation running at its highest level in 40 years and few assets outside a selection of commodities generating positive returns in the first half of 2022, the Fund’s five year performance has fallen behind its long term UK CPI +4% target, which has risen +7.3% p.a. Over ten years the Fund’s performance remains ahead of its long-term target having generated total returns of +7.8% p.a. against UK CPI +4% of +6.4% p.a.

Against a backdrop of above-average returns generated by the Fund in the calendar years of 2019, 2020 and 2021 of +19.7%, +9.7% and +10.3% respectively, the first half of 2022 has proven to be a much more challenging environment. While 2021 closed out a third successive year of double-digit returns for global equity markets, with performance again dominated by large US technology companies, momentum quickly changed in Q1 2022 as expectations of rising interest rates to counter high inflation led to a steep decline in bond and equity markets. A large portion of the overall Fund’s relative underperformance over the twelve month period can be attributed to the lack of oil and gas exposure within the Fund’s equities. Energy prices rose sharply due to supply constraints as a result of the Russian invasion of Ukraine. The Fund’s equities over twelve months generated a return of - 5.1%, against the equity index return of -2.1% which, with its strategic allocation to UK equities of 20% of the portfolio, is difficult to outperform when ‘old industry’ stocks, and those within ethically excluded sectors such as tobacco, alcohol, and defence are rising. Combined, these sectors represent nearly a quarter of the UK index.

Elsewhere in the portfolio, fixed income fared worse than equities, falling -13.8% against the index return of - 14.0%. We have maintained a tactical underweight in fixed income against the composite benchmark, helping to minimise the negative impact to the portfolio. Elsewhere, commercial property has continued to bounce back from the pandemic, generating a robust total return over twelve months of +21.5%. Alternative investments also contributed positively, producing a total return of +12.0% over twelve months, demonstrating the value of diversifying outside of conventional asset classes. We continue to expand our opportunity set within this asset class to help provide ballast to the portfolio in uncertain times for equity and bond markets.

Investment performance continues to be monitored and reviewed regularly and the Council meets with the investment managers at least once a year.

As at 9 September 2022 the investments were valued at £4,709,545.

RESERVES AND DISTRIBUTION POLICY

The majority of distributions should be met by a reliable and sustainable stream of investment income that grows at least in-line with inflation but is supplemented, as appropriate, by capital from the sale of investments. Given that grants are paid in arrears, from investment income generated in the previous year and held mainly in liquid investments, the Council has no liquidity reason to maintain cash reserves over and above income received.

At 30 June 2022 total funds of the Council amounted to £4.72m (2021: £5.14m). Of this, £4.59m (2021: £5.00m) is represented by the value of long-term investments. The underlying yield of the Fund’s portfolio was 2.9% as at 30 June 2022 (2021: 2.9%).

Page 4

The Queen Victoria Clergy Fund COUNCIL'S REPORT (continu¢d) For the year ended 30 June 2022 RISK MANAGEMEN7 Thc Council h15 ideniifi¢d Ihtsi th¢ major risk5 01.th¢ QVCF ar¢ io b¢ unabl¢ to mginthln and grow th¢ inflation adju$ikd valu¢ of digiribuiions llnd Ihc c•pil41 valu¢ of Ihc Fund ovLr the long Icmi. Thesc risk5, which r¢le to: volalility of se¢urity math- 8cncral cconomi¢ condiiionts; invcsimeni mana8¢mcni pcrforman¢¢'. mawkoi sertiimenl., and atLiiude risk Are mitigated by m#inwining a divctsifKd pollfijlio: regularly rcvicwing inv¢simcni p¢rr￿ce. and wulor dialu¥y¢ wlih inyostmcnl udvi8¢rs. Sto¢k market voiyiiliiy and cortiinuing gli)bJl eionomic unc¢rt#inty ioniinuc lo rnakc the managcmcnt of i Fund'% Invesmicn15 50m¢whai Challenging. Th¢ ¢harity is a lon8-tcrTh investor And ihc m￿1¢￿$. ott prof¢¥¥ioMI advice. remain of thc opittion thai a mixcd portfolio of ¢quili¢s. bonds. cash InvrMmcNl¥ remaln5 oppn)pri4 ￿ lis riik profilc. Thc Cuuncil, thrO￿￿h thc prucus uftotbtinuous r¢vi¢w and rcgular di•lobtue wirh 115 inv¢simeni manaBcr& is contcni ihm i Iijwl rctum llrvrollch is lh¢ most approFYilllc ￿ mitl8Rtc risks aywJ¢iai¢d wi(h inyrsimeni perfofflwtL¢C •nd poimiidl impaci in rcloiiuth Iv Ihe Invesitnciil. nd di$(rib￿liOn, of th¢ l-uiid's &%ets. Th¢ iothl relurn sirnT¢gy ¥hould ¢n¥bl¢ th¢ Fund 10 irtLfc¥¢ il¥ disiribuiiolls oyor Ilic long i¢mi bui mlly LngendLY & hi8her l¢vel of ihon and mcdiu￿¢¢m1 volaulity. It is un1icipllt¥￿ by rhe Council ih•i ther¢ m•y bc circuMy￿￿¢¢1 irt which the CRpiral ul¢rnentof our diJtribJtion miy b¢ r¢du¢¢d. TRUF. AND FAIR OVERRIDE The fLn&nclal siatements hRv¢ bc¢n prq)tted io ¥lv¢ 8"InJe ¥nd f¥ir" view hve d¢prtL¥I from the ChAViii (A¢counis •nd R¢￿￿5} RL¥ululions 2008 ottly tv Ihc exieni requircd io provid¢ * "irue and fair vi¢w" Thiy d¢parnir¢ involvcd followin8 th¢ A¢¢ountlnu und ReportittÉ by ChJriil¥s'. Sw¢emenl Ot. Rc¢omm¢nthd PrKfi¢¢ 4pplicabl¢ in tho UK and R¢public of Ireland itsued in O¢iob¢r 2n19 roih¢r ihin Ihc Acrouniinll a￿1 Reporting by Charitici: s￿¢￿￿¢n[of Rrfommmded Prncth"cc from l April 2005 which lin¢¢ b¢en wlimrnwn. Si¥n¢d un b¢half ofihe Council on ? Vebruary 21123. CwA Pe￿r Rrninvclj Chairman Page 5

The Queen Victoria Clergy Fund COUNCIL'S RESPONSIBILITIES IN THE PRLPARATION OF FNANCIAL STATEMENTS The C4utt¢il is r¢sponsibl¢ for pr¢poring ihc fin4n¢iul in a¢¢ordAn¢¢ with applicublc liw and Uttited KinbTrdom A¢couniin&v Sthndllrds (Unii¢d Kingthm C¥¢n¢rnlly Aic¢p¢cd Accounlin¥ PracllE¢I. The law appliubl¢ 10 ¢hariii¢s in l.n¥landJTKI WJl¢% r¢quir¢s lh¢ Louncil 10 pr¢pa￿ fin4n¢i41 for each fin4n¢ial yeor which 8iv¢ a uw¢ and fair vi¢w k)fth¢ stai¢ ofaffairs of the chariry of thc incoming resources and applicaiion ufre$ou￿¢s of th¢ ¢harity lor ilial p¢iiud. In prepdrinu diese financial siatemcnts. Ihc C"uun¢il is rcqul￿d iu.. seleei aLcuuniiab ￿11¢1¢$ und Ill¢￿ W￿[Y Iliem u)nsi8iently: obs¢rv¢ ihc mcihryJ5 4nd pri￿1￿1￿? in th¢ Chuiiie4 SORP 2019 IFRS1021: make judgements 4bAd ¢S¢imas Ihat 4r¢ arml w￿1¢￿1. sthic whdh¢r aFf•li¢abl¢ a¢¢ouMini ￿ndardS have IKcn followed. %ubj¢d ￿ any makrial d¢parnires diselosed and cxplain¢d in th¢ firW￿ll ststh'm￿Ls.' pro4r¢ th¢ stui¢mLllts on lh¢ ioinbt LY)nc¢rn basi$ unk.s ii 1$ inwopii#i¢ 10 pr¢%ume ihai the ¢huity will <ooiimh¢ in Council is r¢sponsibl¢ fvi k¥%pin& prop¢r a¢¢i)uMin6D r¢¢ords Ihai di￿1￿￿ iviih r￿￿nabl¢ JEcura¢y 41 any tim¢ th¢ financial posiiion of th¢ chariiy ¢kable io ensure th Ihc financi)I siaicm¢ni$ cornply wilh th¢ requircmen￿ of lh¢ ChariTiCS A¢T •OI l. thc chariiiC$ IA¢rounL4 and ReporL81 Regulations 7008 and lh¢ provision of the con51irntion. Thc Council is also rE%p(insibl¢ fvrsJfi¥uaTdinb th¢ assets of thc tharily and herK¢ f4ir Llkin rLxwnttblL sitps for Ihc prcvcniion and dtheciion orrrnud i•ihLY irrLuul4riliL¥. Apwoved by the Council and sighed on its behalf ort 7 Fdyntsry 2023. Canon Peier Flrninvets Chairnwn Page 6

INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OF THE QUEEN VICTORIA CLERGY FUND

For the year ended 30 June 2022

Opinion

We have audited the financial statements of The Queen Victoria Clergy Fund (the ‘charity’) for the year ended 30 June 2022 which comprise of the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Council’s annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 7

INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OF THE QUEEN VICTORIA CLERGY FUND (continued) For the year ended 30 June 2022

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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

Page 8

INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OF THE QUEEN VICTORIA CLERGY FUND (continued) For the year ended 30 June 2022

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements 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 Council 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 Council as a body, for our audit work, for this report, or for the opinions we have formed.

First Floor Suite 2 Hillside Business Park Lovewell Blake LLP Bury St Edmunds Chartered accountants & statutory auditor IP32 7EA 24/03/2023

Lovewell Blake LLP is eligible to act as a auditor in terms of Section 1212 of the Companies Act 2006

Page 9

Tlie Queeii Victoria Clergy Fuiid 14.41.IlN'("I-: SI I I.-I.-'I' A% 111 .IuIiL ?()?? 2n22 ?Q21 FIIF.I) Il.S%F.TS 4.S¥1..1711 . j47 IU(?.g* 34.15: l)Lbic)r% .l.l.Y116 1.14,1I27 14,4721 Nl'.'I' ('l.'Illll.'N'l' A4S1."1' 1.111.455 4.721.1124 5.13l).7?8 4.2.121,74U 4X.I,ItIs 4.fil 7.681 4•? 047 4,721 L)25 Puge 10

The Queen Victoria Clergy Fund STATEMENT OF FINANCIAL ACTIVITIES For the year ended 30 June 2022

Notes
Unrestricted
Funds
£
Endowment
Funds
£
INCOME AND EXPENDITURE
Income from:
Income on investments
Interest on deposit
Total income
119,267
16

119,283
13,772
-

13,772
Expenditure on:
Charitable activities
Total expenditure
11
175,897

175,897
441

441
Net (expenditure) / income
before transfers and gains /
(losses)
Transfers between funds
Net (expenditure) after transfers
and before gains / (losses)
(56,614)
13,331

(43,283)
13,331
(13,331)

-
Other gains and (losses)
Realised gains on the disposal of
investments
Unrealised (losses) / gains on
market value of investments
884
(336,542)
-
(38,862)
Net movements in funds
(378,941)
(38,862)
Total funds brought forward 1
July 2021
4,617,681
522,047
Total funds carried forward 30
June 2022
8/9
4,238,740
483,185		 Total
2022
£
Total
2021
£
133,039
16

133,055
139,936
32

139,968
176,338

176,338
159,557

159,557
(43,283)
-

(43,283)
(19,589)
-

(19,589)
884
(375,404)

894
516,926
(417,803)
498,231
5,139,728

4,641,497
4,721,925
5,139,728

All incoming resources and expended resources derive from continuing activities. An analysis by fund of the comparative figures for 2021 is shown in note 10.

Page 11

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2022

1 GENERAL INFORMATION

2 ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011.

GOING CONCERN

The financial statements have been prepared on a going concern basis, as the Council believes that no material uncertainties exist. The Council have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements.

INVESTMENT INCOME

The Fund recognises income in the period in which it was earned consistent with the accruals basis.

EXPENDITURE

Expenditure together with any irrecoverable VAT is included on an accruals basis.

Grants payable are accounted for in the year when the offer is conveyed to the recipient.

Expenditure on charitable activities includes grants made and support costs.

INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Fund does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Page 12

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

2 ACCOUNTING POLICIES (continued)

REALISED GAINS AND LOSSES

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (purchase date if later).

FUNDS

There are no specific restrictions on the use of the Unrestricted Fund apart from the furtherance of the Charity's aims.

The endowments within the terms of the originating legacies are shown in note 9. Under the terms of the legacies any surplus income arising from these investments after specific donations is to be transferred to the General Fund to further the Charity’s aims.

FINANCIAL INSTRUMENTS

A financial asset or financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

3

INVESTMENTS
Market value at 1 July 2021
Additions
Disposals
Unrealised (loss) / gain in the year
Market value 30 June 2022
Historical cost as at 30 June 2022
Investments at market value comprised:
Global equities
UK equities
Fixed interest securities
Property
Liquid assets
Alternative assets
 2022
£
5,002,557
2,333
(38,116)
(375,404)

4,591,370
2,729,108
1,981,520
925,951
339,283
667,837
284,776
392,003

4,591,370		 2021
£
4,497,504
1,333
(13,206)
516,926

5,002,557
2,747,713
2,643,059
994,931
501,704
452,225
153,484
257,154
5,002,557

Page 13

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

3 INVESTMENTS (continued)

All investments are listed UK securities, held in the Fund’s investment portfolio managed and administered by Sarasin & Partners LLP. The primary objective of the investments held is to generate sufficient levels of annual income and capital growth to enable adequate levels of grant distributions to be maintained whilst achieving overall growth of the portfolio’s capital value.

4
REALISED GAIN ON SALE OF INVESTMENTS
Sale proceeds from sale of investments
Less: original cost
Profit on original cost
Less: unrealised gain previously recognised
Realised gain on sale of investments
5
CASH AT BANK AND ON DEPOSIT
Barclays Bank Current account
Barclays Bank Base Rate Reward account
Sarasin & Partners Sterling Investment account
6
DEBTORS
Accrued investment income and bank interest
2022
£
39,000
(20,938)

18,062
(17,178)

884
2022
£
3,030
97,380
711

101,121
2022
£
33,906

33,906		 2021
£
14,100
(8,088)

6,012
(5,118)

894
2021
£
1,030
105,891
-

106,921
2021
£
34,152

34,152

Page 14

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

7
CREDITORS: Amounts falling due within one year
Grants payable
Accruals

8
UNRESTRICTED FUNDS
Balance brought forward 1 July 2021
(Deficit) for the year
Realised gain on sale of investments
Unrealised (loss) / gain in market value for the year
Balance carried forward 30 June 2022
2022
£
441
4,031

4,472
2022
£
4,617,681
(43,283)
884
(336,542)

4,238,740
 2021
£
463
3,439

3,902
2021
£
4,172,963
(19,589)
894
463,413

4,617,681

Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects.

9
ENDOWMENT FUNDS
Priors Hardwick Trust
RA Clement Trust
Incumbents’ Sustentation Fund
Endowment Capital Trust
Miss RLJ Stallard Bequest
Tithe Redemption Trust
AD Yorke Legacy		 30 June
2021
£
4,832
48,899
134,827
2,799
110,998
24,767
194,925

522,047		 Market
(loss)
£
(360)
(3,640)
(10,037)
(208)
(8,263)
(1,844)
(14,510)

(38,862)		 30 June
2022
£
4,472
45,259
124,790
2,591
102,735
22,923
180,415

483,185

The endowments represent legacies given. Under the terms of the various endowments, unexpended income arising from the investments, after specific donations, is to be transferred to the Unrestricted Funds to further the aims of the Charity. For the year ended 30 June 2022 the transfer amounted to £13,331 (2021: £14,023).

Page 15

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

10 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted
Funds
£
Endowment
Funds
£
Income from:
Income on investments
Interest on deposit
Total income
125,450
32

125,482
14,486
-

14,486
Expenditure on:
Charitable activities
Total expenditure
159,094

159,094
463

463
Net (expenditure) / income before transfers and gains
Transfers between funds
Net (expenditure)/ income after transfers and before
gains
(33,612)
14,023

(19,589)
14,023
(14,023)

-
Other gains and losses
Realised gains on the disposal of investments
Unrealised gains on market value of investments
894
463,413
-
53,513
Net movements in funds
444,718
53,513
Total funds brought forward
4,172,963
468,534
Total funds carried forward
4,617,681
522,047		 Total
£
139,936
32

139,968
159,557

159,557
(19,589)
-

(19,589)
894
516,926
498,231
4,641,497

5,139,728

Page 16

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

11
EXPENDITURE ON CHARITABLE ACTIVITIES
Direct Costs
Grants payable
Support costs
Management fee
Audit fees
Legal and professional fees
Other expenses
12
GRANTS PAYABLE
The amount payable in the year comprises:
Support to clergy -
42 grants (2021: 42) to dioceses (see below)
5 grants (2021: 5) to Incumbents Sustentation Funds		 Total
2022
£
165,441
8,000
3,342
(1,048)
603

176,338
2022
£
165,000
441

165,441		 Total
2021
£
150,463
8,000
3,458
(2,374)
10
159,557
2021
£
150,000
463
150,463

Page 17

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

13
SUMMARY OF BLOCK GRANTS TO DIOCESES
Bath and Wells
Birmingham
Blackburn
Bristol
Canterbury
Carlisle
Chelmsford
Chester
Chichester
Coventry
Derby
Durham
Ely
Europe
Exeter
Gloucester
Guildford
Hereford
Leicester
Lichfield
Lincoln
Liverpool
London
Manchester
Newcastle
Norwich
Oxford
Peterborough
Portsmouth
Rochester
St Albans
St Edmundsbury & Ipswich
Salisbury
Sheffield
Sodor and Man
Southwark
Southwell
Truro
West Yorkshire & The Dales
Winchester
Worcester
York
Total
 2022
£
2021
£
3,504
5,891
5,939
2,431
3,144
5,291
5,355
2,225
2,950
2,284
5,876
5,241
2,693
2,081
5,289
4,693
5,519
4,935
2,571
2,968
5,286
2,677
2,200
2,306
2,677
4,855
2,435
2,000
3,328
1,779
2,532
1,600
2,211
3,080
1,612
2,257
1,371
1,983
6,035
4,412
6,095
8,104
8,824
5,645
3,952
5,743
7,224
8,001
3,444
3,671
5,190
2,681
2,502
3,177
3,289
4,676
2,484
2,467
3,377
3,502
2,065
2,497
3,064
3,209
1,887
2,274
5,182
251
4,688
3,565
1,941
4,758
226
4,209
3,177
1,774
9,132
2,786
1,834
6,435

165,000
8,339
2,515
1,677
5,951

150,000

Page 18

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

14
AUDITORS REMUNERATION
Fees payable for the audit of the financial statements
15
ANALYSIS OF NET ASSETS BETWEEN
FUNDS
Unrestricted
Funds
Investments
Current assets
Current liabilities
Net assets at 30 June 2022
4,108,185
135,027
(4,472)

4,238,740
Unrestricted
Funds
Investments
Current assets
Current liabilities
Net assets at 30 June 2021
4,480,510
141,073
(3,902)

4,617,681		 2022
£
3,342
Endowment
Funds
483,185
-
-

483,185
Endowment
Funds
522,047
-
-

522,047		 2021
£
3,458
Total
Funds
4,591,370
135,027
(4,472)

4,721,925
Total
Funds
5,002,557
141,073
(3,902)

5,139,728

16 COUNCIL’S REMUNERATION, EXPENSES AND RELATED PARTY TRANSACTIONS

The council members all give their time and expertise freely without any form of remuneration or other benefit in cash or kind (2021: £nil). During the year ended 30 June 2022 £nil expenses were reimbursed to members of the Council (2021: £nil expenses were reimbursed to members of the Council).

During the year a grant was paid to Guildford diocese of £2,532 (2021: £2,257) - Council member Canon Peter Bruinvels is a trustee of Guildford Diocesan Board of Finance. Grants were also paid during the year to St Edmundsbury and Ipswich diocese of £2,065 (2021: £1,887) - Council member Anthony Allwood is a trustee of St Edmundsbury and Ipswich Diocesan Board of Finance and the Bristol diocese of £2,431 (2021: £2,225) – Council member Canon David Froude is a trustee. There were no other related party transactions.

17 STAFF

The Charity does not have any employees (2021: Nil).

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The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2022

18 TAXATION

The Queen Victoria Clergy Fund is a registered charity, and as such its income and gains falling within Section 505 of the Income and Corporation Taxes Act 1988 or Section 256 of Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable activities.

19 FINANCIAL INSTRUMENTS

The carrying amounts for each category of financial instrument is as follows:

2022 2021
£ £
Financial assets measured at fair value
through income and expenditure
Fixed asset listed investments (note 3) 4,591,370 5,002,557

Page 20