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2024-06-30-accounts

The Queen Victoria Clergy Fund COUNCIL’S REPORT For the year ended 30 June 2024

Royal Patron: HM King Charles III

THE COUNCIL OFFICERS AND ADVISERS

COUNCIL

Canon Peter Bruinvels, CC. Chairman Rosemary Lyon Deputy Chairman Anthony Allwood, Hon Treasurer John Brydon Canon Robert Perry Mary Talbot

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 Bankside 300 Peachman Way Broadland Business Park Norwich, Norfolk NR7 0LB

Page 1

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2024

The Council (who are also considered to be the Trustees for the purposes of charity law) presents its annual report and audited financial statements for the year ended 30 June 2024.

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. HM King Charles III became its Royal Patron on the 3[rd] May 2024.

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. This report covers the third of these five-year terms having been elected, at the Annual General Meeting held 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. Council Members are forwarded regular updates from the Charity Commission and details of appropriate training courses, which a number of them attend.

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 were 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. However, it is planned that a review of its Investment Managers will take place during late Autumn 2024.

Page 2

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2024

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 and their families, 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 medical care, including dental care, support for respite care for parents with large caring responsibilities including short weekend away breaks, assistance with repairs to modes of transport such as car servicing, including pedal bikes, new shoes and support for repairing household appliances including boilers and showers. Without exception, the Diocesan Bishops continue to express their heartfelt thanks for the grants made which as the Bishop of London wrote “make an exceptional difference to the clergy each year and it is greatly appreciated.”

The Fund generated a total surplus in the year of £416,265 after accounting for unrealised gains on investments of £451,585. By comparison, in the year to 30 June 2023 the Fund generated a deficit of £12,239 after accounting for unrealised losses on investments of £30,361.

In the year to 30 June 2024, the capital value of the Fund’s portfolio increased by £414,085 (2023: increased by £21,947).

During the year, the fund once again distributed £165,000 (2023: £165,000) to the dioceses in furtherance of the charity’s aims, reflecting the cost of living crisis post-COIVD. 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 £39,597 (2023: £9,700) from the sale of investments. It is anticipated that investments of around £134,800 will be sold to meet the income shortfall in the 2023/24 financial year and to maintain the increased level of distribution. In considering the amount of capital transferred to income, the Council continues to balance the current needs of beneficiaries with the likely needs of future beneficiaries.

The trustees are most grateful for the presence and prayers of the Bishop of Manchester at General Synod York over the previous year’s meeting. The Rt Revd David Walker separately spoke positively about how the Queen Victoria Clergy Fund grants had made such a difference in his Diocese to clergy in need and personally thanked the Trustees and Council Members for their continued support.

Following a letter of congratulations to His Majesty King Charles III on his accession as the Council was meeting that same day and the accompanying book about the Queen Victoria Clergy Fund entitled ‘A Centenary History’, a pleasing response was received. It was announced from Buckingham Palace on 3[rd] May 2024 that HM King Charles III had accepted our invitation to become its Royal Patron. The trustees are honoured by his patronage.

FUTURE PLANS

The Council intends to continue its annual grants to dioceses to enable them to give further support to clergy in need. The Council has resolved to offer total grant distributions in 2024/25, of £150,000.

Page 3

The Queen Victoria Clergy Fund COUNCIL’S REPORT (continued) For the year ended 30 June 2024

INVESTMENT POLICY

Following a review of the Investment Policy, the maintain with effect from 1 July 2021, the composite benchmark at 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 reaffirmed by the Trustees 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.

INVESTMENT PERFORMANCE

Over the twelve months to 30th June 2024, the Fund’s return, net of fees, was +13.2%. This compares to the ARC Steady Growth Peer Group return of +11.0% and composite benchmark return of +15.9% over the same period. Encouragingly, with UK inflation having fallen steadily this year, the Fund has produced returns more than twice that of its long-term UK CPI +4% target (+ 6.1% over the same period). The Fund’s returns over 3 and 5 years is +3.7% p.a. and +6.5% p.a. respectively, which again places it ahead of the peer group returns of +2.6% p.a. and +4.5% p.a., albeit behind the composite benchmark returns, not inclusive of fees, of +6.1% and +7.7% p.a.

The second half of 2023 saw subdued returns across most major asset classes. UK inflation rates, which had peaked last year, fell significantly to 6.7% by August which significantly benefited corporate bonds. The strong performance of the 'Magnificent 7' continued to dominate the market which made it challenging for diversified portfolios to maintain pace with such a concentrated equity index. As a result, the Fund recorded a total return of +4.9% for the period, underperforming the benchmark, which returned +6.6%. Key changes during this time included increasing exposure to technology companies (notably key beneficiaries of the growth in AI) and selling stocks primarily on valuation concerns (e.g. Palo Alto Networks). Our alternatives exposure detracted from overall returns, with gold and absolute return funds providing some relief but not offsetting the weakness experienced within infrastructure and renewables, as higher interest rates increased financing costs and encouraged investors into higher yielding/lower risk fixed income assets.

In the first half of 2024, the Fund rebounded significantly. Firstly, a notable rally in both equity and bond markets was driven by a sharp decline in US inflation and indications that the Federal Reserve had reached peak interest rates. Bond investments were particularly strong as yields began to fall, although our preference for corporate bonds over gilts allowed us to profit from the c1% spread, having been reassured by the strength of corporate balance sheets. Our thematic equity selection performed well amidst the broader market rally and international equities outperformed the UK market, as our shift to a global equity approach proved advantageous. Alternatives saw modest returns due to further improvements in gold and narrowing discounts in both renewables and infrastructure funds, although they remained relatively weak compared to our other exposure to this asset class.

Over the period we have seen increased volatility due to geopolitical tensions, including the ongoing Israel-Hamas conflict and the volatile US presidential election campaign. Although short-term market volatility presents a challenge, our forecasts for interest rate cuts in the second half of 2024 remain on track and our emphasis on quality and liquidity remains important as geopolitical risks rise. We expect the high-quality companies held across the Fund to be well placed to continue growing their earnings and dividends, in spite of slower economic growth.

As at 16[th] September 2024, the investments were valued at £5,142,179

Page 4

COUNCIL’S REPORT (continued) For the year ended 30 June 2024

The Queen Victoria Clergy Fund

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 2024 total funds of the Council amounted to £5.13 m (2023: £4.71 m). Of this, £5,03m (2023: £4.61m) is represented by the value of long-term investments. The underlying yield of the Fund’s portfolio was 2.8% as at 30 June 2024 (2023: 2.9%).

RISK MANAGEMENT

The Council has identified that the major risks of the QVCF are to be unable to maintain and grow the inflationadjusted value of distributions and the capital value of the Fund over the long term. These risks, which relate to: volatility of security markets; general economic conditions; investment management performance; market sentiment; and attitude to risk are mitigated by maintaining a diversified portfolio; regularly reviewing investment performance; and regular dialogue with investment advisers.

Stock market volatility and continuing global economic uncertainty continue to make the management of the Fund’s investments somewhat challenging. The charity is a long-term investor and the trustees, on professional advice, remain of the opinion that a mixed portfolio of equities, bonds, cash and other investments remains appropriate to its risk profile.

The Council, through the process of continuous review and regular dialogue with its investment managers through quarterly investment updates, is content that a total return approach is the most appropriate to mitigate risks associated with investment performance and potential impact in relation to the investment, and distribution, of the Fund’s assets. The total return strategy should enable the Fund to increase its distributions over the long term but may engender a higher level of short and medium-term volatility. It is anticipated by the Council that there may be circumstances in which the capital element of our annual distribution may be reduced, but not for the foreseeable future.

TRUE AND FAIR OVERRIDE

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 the Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice from 1 April 2005 which has since been withdrawn.

Signed on behalf of the Council on 10 February 2025.

Canon Peter Bruinvels CC Chairman

Page 5

The Queen Victoria Clergy Fund COUNCIL’S RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS

The Council is responsible for preparing the Council’s Report financial statements in accordance with applicable law and United Kingdom Accounting Standards (United 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 affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Council is required to:

The Council is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the charities (Accounts and Reports) Regulations 2018 and the provision of the constitution. The Council is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Council and signed on its behalf on 10 February 2025

Canon Peter Bruinvels CC Chairman

Page 6

INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OF THE QUEEN VICTORIA CLERGY FUND For the year ended 30 June 2024

Opinion

We have audited the financial statements of The Queen Victoria Clergy Fund (the ‘charity’) for the year ended 30 June 2024 which comprise of the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including 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 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, 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 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 there is a material misstatement in the financial statements 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.

Page 7

INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OF THE QUEEN VICTORIA CLERGY FUND (continued) For the year ended 30 June 2024

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 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 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 the Act and relevant regulations made or having effect there under.

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 2024

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 is available 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.

Bankside 300 Peachman Way Broadland Business Park Lovewell Blake LLP Norwich, Norfolk Chartered accountants & statutory auditor NR7 0LB

16 February 2025

Lovewell Blake LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under Section 1212 of the Companies Act 2006

Page 9

The Queen Victoria Clergy Fund BALANCE SHEET As at 30 June 2024

Notes
FIXED ASSETS
Investments
CURRENT ASSETS
Cash at bank and on deposit
3
5
Debtors
Creditors: Amounts falling due within one year
NET CURRENT ASSETS
NET ASSETS
6
7




REPRESENTED BY:
Unrestricted funds
Endowment funds
Total funds
8
9		 2024
£
5,027,402

87,877
33,907

121,784
(23,235)

98,549

5,125,951


4,585,972
539,979

5,125,951		 2023
£
4,613,317

73,305
36,895

110,200
(13,831)

96,369

4,709,686
4,216,457
493,229

4,709,686

The financial statements on pages 10 to 20 were approved by the Council and authorised for issue on 10 February 2025 and signed on its behalf by:

Chairman – Canon Peter Bruinvels CC

Trustee – Anthony Allwood

Secretary – Stephanie Maurel

Page 10

The Queen Victoria Clergy Fund STATEMENT OF FINANCIAL ACTIVITIES For the year ended 30 June 2024

Notes
Unrestricted
Funds
£
Endowment
Funds
£
INCOME AND EXPENDITURE
Income from:
Income on investments
Interest on deposit
Total income
124,819
2,943

127,762
14,413
-

14,413
Expenditure on:
Charitable activities
Total expenditure
11
177,013
177,013
470
470

Net (expenditure) / income
before transfers and gains /
(losses)
Transfers between funds
Net (expenditure) after transfers
and before gains / (losses)
(49,251)
13,943

(35,308)
13,943
(13,943)

-
Other gains and (losses)
Realised (losses) / gains on the
disposal of investments
Unrealised gains / (losses) on
market value of investments
(12)
404,835
-
46,750
Net movements in funds
369,515
46,750
Total funds brought forward 1
July 2023
4,216,457
493,229
Total funds carried forward 30
June 2024
8/9
4,585,972
539,979		 Total
2024
£
Total
2023
£
139,232
2,943

142,175
132,691
773

133,464
177,483
177,483
176,000
176,000
(35,308)
-

(35,308)
(42,536)
-

(42,536)
(12)
451,585

(64)
30,361
416,265
(12,239)
4,709,686

4,721,925
5,125,951
4,709,686

All income and expenditure derive from continuing activities.

An analysis by fund of the comparative figures for 2023 is shown in note 10.

Page 11

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

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 2024

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 2023
Additions
Disposals
Unrealised gain / (loss) in the year
Market value 30 June 2024
Historical cost as at 30 June 2024		 2024
£
4,613,317
2,109
(39,609)
451,585

5,027,402
2,703,371		 2023
£
4,591,370
1,350
(9,764)
30,361

4,613,317
2,724,654

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.

The investments above are held in the Sarasin Endowments Fund.

Page 13

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

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 (loss) / 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
Prepayments

 2024
£
39,597
(23,392)

16,205
(16,217)

(12)
2024
£
12,180
489
75,208

87,877
2024
£
33,907
___-
33,907		 2023
£
9,700
(5,805)

3,895
(3,959)

(64)
2023
£
6,161
482
66,662

73,305
2023
£
33,907
2,988
36,895

Page 14

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

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

8
UNRESTRICTED FUNDS
Balance brought forward 1 July 2023
(Deficit) for the year
Realised (loss) / gain on sale of investments
Unrealised gain / (loss) in market value for the year
Balance carried forward 30 June 2024
2024
£
470
22,765

23,235

2024
£
4,216,457
(35,308)
(12)
404,835

4,585,972
2023
£
441
13,390

13,831
2023
£
4,238,740
(42,536)
(64)
20,317

4,216,457

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
2023
£
4,565
46,200
127,384
2,645
104,871
23,399
184,165

493,229		 Market
gain
£
433
4,379
12,074
251
9,940
2,218
17,455

46,750		 30 June
2024
£
4,998
50,579
139,458
2,896
114,811
25,617
201,620

539,979

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 2024 the transfer amounted to £13,943 (2023: £13,925).

Page 15

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

10 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted
Funds
£
Endowment
Funds
£
Income from:
Income on investments
Interest on deposit
Total income
118,955
773

119,728
13,736
-

13,736
Expenditure on:
Charitable activities
Total expenditure
175,559

175,559
441

441
Net (expenditure) / income before transfers and gains
Transfers between funds
Net (expenditure)/ income after transfers and before
gains
(55,831)
13,295

(42,536)
13,295
(13,295)

-
Other gains and losses
Realised gains on the disposal of investments
Unrealised gains on market value of investments
(64)
20,317
-
10,044
Net movements in funds
(22,283)
10,044
Total funds brought forward
4,238,740
483,185
Total funds carried forward
4,216,457
493,229		 Total
£
132,691
773

133,464
176,000

176,000
(42,536)
-

(42,536)
(64)
30,361
(12,239)
4,721,925

4,709,686

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The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

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 (2023: 43) to dioceses (see below)
5 grants (2023: 5) to Incumbents Sustentation Funds		 Total
2024
£
165,457
8,000
5,964
(2,099)
161

177,483
2024
£
165,000
457

165,457		 Total
2023
£
165,441
8,000
3,742
(2,349)
1,166
176,000
2023
£
165,000
441
165,441

Page 17

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

13
SUMMARY OF BLOCK GRANTS TO DIOCESES
Bath and Wells
Birmingham
Blackburn
Bristol
Canterbury
Carlisle
Channel Islands
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
Leeds
Winchester
Worcester
York
Total
 2024
£
3,560
5,946
6,044
2,438
2,326
2,269
-
5,950
5,336
5,591
2,576
3,000
5,243
2,645
2,200
3,349
1,808
2,588
1,552
2,194
6,055
4,492
6,082
8,126
8,784
3,510
3,626
5,213
2,708
2,436
3,284
3,408
2,041
3,101
5,106
255
4,850
3,647
1,825
8,876
2,757
1,755
6,448

165,000

 2023
£
3,548
5,854
5,976
2,465
2,320
2,246
651
5,972
5,276
5,540
2,571
2,988
5,283
2,641
2,200
3,315
1,792
2,568
1,539
2,191
6,003
4,442
6,057
8,185
8,878
3,466
3,588
5,227
2,681
2,519
3,348
3,455
2,026
2,479
5,105
253
4,722
3,589
1,846
9,119
2,824
1,793
6,459

165,000

Page 18

The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

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 2024
4,487,423
121,784
(23,235)

4,585,972
Unrestricted
Funds
Investments
Current assets
Current liabilities
Net assets at 30 June 2023
4,120,088
110,200
(13,831)

4,216,457		 2024
£
5,964
Endowment
Funds
539,979
-
-

539,979
Endowment
Funds
493,229
-
-

493,229		 2023
£
3,742
Total
Funds
5,027,402
121,784
(23,235)

5,125,951
Total
Funds
4,613,317
110,200
(13,831)

4,709,686

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 (2023: £nil). During the year ended 30 June 2024 £nil expenses were reimbursed to members of the Council (2023: £nil expenses were reimbursed to members of the Council).

During the year a grant was paid to Guildford diocese of £2,588 (2023: £2,568) - 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 £2,041 (2023: £2,026) - Council member Anthony Allwood is a trustee of St Edmundsbury and Ipswich Diocesan Board of Finance, £2,200 (2023: £2,200) to Diocese of Europe – Council member Mary Talbot is a trustee and £1,825 (2023: £1,846) to Diocesan of Truro – Council member Canon Robert Perry is a trustee, Norwich diocese of £3,626 (2023: £3,588) - Council member John Brydon is a trustee, Blackburn diocese of £6,044 (2023: £5,976) - Council member Rosemary Lyons is a trustee. There were no other related party transactions.

17 STAFF

The Charity does not have any employees (2023: Nil).

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The Queen Victoria Clergy Fund NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2024

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:

2024 2023
£ £
Financial assets measured at fair value
through income and expenditure
Fixed asset listed investments (note 3) 5,027,402 4,613,317

Page 20