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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
DocuSign Envelope ID: 844BA6D1-DEFB-4071-96B8-19FA80F81B2E
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023
The Trustees present their report and the financial statements for the year ended 31[st] March 2023.
REFERENCE AND ADMINISTRATIVE INFORMATION
REGISTERED CHARITY NO. 215721 PRINCIPAL ADDRESS PO Box 828 Godalming Surrey GU7 9HP
The Trustees who served during the year were:-
Mr P. Allen (appointed 6[th] June 2022) Mrs R. Brown Mr G. Chaplin (retired 7[th] June 2022) Mr J. Lardge Mrs S. McGrath Ms L. Neligan
Ms K. Sutton has acted as Administrator throughout the year. The Administrator carries out the administration of the Trust on behalf of all the Trustees.
Mrs A. Glynn was appointed as a Trustee on 5[th] June 2023.
PROFESSIONAL ADVISORS
Bankers CAF Bank Ltd. Charities Aid Foundation Kings Hill West Malling Kent ME19 4TA Solicitors Kingsley Napley LLP Knights Quarter 14 St John's Lane London EC1M 4AJ Auditors FLB Audit LLP 1010 Eskdale Road Winnersh Triangle Wokingham Berkshire RG41 5TS Independent Accountant DHL Accountancy Services Ltd Chartered Accountants 30 Willowbank Gardens Tadworth Surrey KT20 5DS
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023
(continued)
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charitable Trust is constituted by a Trust Deed dated 16[th] April 1956 - as varied by two Deeds of Variation dated respectively 21[st] January 1972 and 14[th] October 1980. The Trustees are to apply the capital and income of the Trust for the purpose of promoting and extending the religion of Christian Science as taught by Mary Baker Eddy in the Christian Science Textbook "Science and Health with Key to the Scriptures".
Appointment of Trustees is governed by the Trust Deed. The Trustees are appointed annually by the Board of Directors of The First Church of Christ, Scientist, in Boston, Massachusetts. Potential candidates are sourced from Branch Churches and Societies, seeking people with suitable skills and trying to maintain a broad spectrum of views and experience. New Trustees are provided with a copy of the governing documents, copies of recent minutes and other documents which might be helpful as well as a preliminary briefing by the Chairman. At the first meeting attended by a new Trustee, an updated briefing is provided and there is an opportunity to ask questions about the Trust's activities. Charity Commission newsletters are available to all Trustees and the Chairman provides briefings from time to time on the responsibilities of Trustees as well as arranging for external training courses.
The Christian Science Trust in Great Britain does not have any employees and all decisions are taken by the Trustees.
The Trustees, with the exception of Ms L. Neligan, are also Trustees of The Westminster Fund. The Trustees consider grant applications in a co-ordinated manner to ensure that where possible, grant applications are dealt with by the most appropriate Charity. There is an annual recharge from the Christian Science Trust in Great Britain to cover support costs incurred by the Charity in relation to this joint operation.
The Christian Science Trust in Great Britain also has responsibility for the management of a number of subtrusts as described in the paragraphs below:
The ' Miss Cobham Bequest' . The income from this Fund is to be applied in giving financial assistance to any members of The Christian Science Student Association of the Pupils of Rosemary Cobham CSB who may be in need of help - as defined in a memorandum dated 8[th] July 1974.
The ' Churches Support Fund' was set up by resolution of the Trustees dated 7[th] December 1998 to replace the Brixton Fund, which was then coming to an end, to apply the capital and the income thereof for the advancement of the religion of Christian Science in the United Kingdom and/or the Channel Islands, including in particular the provision of financial assistance to Christian Science Branch Churches, Societies and Informal Groups in the United Kingdom and/or the Channel Islands which are able to demonstrate a special need for funds.
The ' UK Restricted Activities' Fund consists mainly of the balance of the Peccorini Bequest, the Arthur Hanson Trust Fund and income arising from the EE Harris Will Trust which are for the use of the Trustees within the UK only. The Trustees can apply the capital and income within the United Kingdom for the purpose of promoting and extending the religion of Christian Science as taught by Mary Baker Eddy, and such other charitable purposes as the Trustees shall think fit and which are supportive of and consistent with the teachings and practice of the religion.
RISK MANAGEMENT
The Trustees have reviewed the major operational risks which the charity faces and confirm that systems have been put into place to mitigate those risks.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023
(continued)
STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
INVESTMENT POWERS
The Trust Deed authorises the Trustees to make and hold investments using the funds of the Charity. On 23[rd] May 2015 all funds held by the investment managers were transferred to The Mother Church in Boston who have amalgamated the monies received with their main managed investment holdings. This is designed to provide a better return for the Trust with a lower fee burden and allow the experienced investment team at The Mother Church to oversee investment performance.
OBJECTS AND ACTIVITIES
The Trust Fund shall be held upon Trust that it shall both as to capital and income be applied for the purpose of promoting and extending the religion of Christian Science as taught by Mary Baker Eddy in the Christian Science textbook 'Science and Health with Key to the Scriptures', and other related charitable purposes determined by the Trustees. The Charity does this by means of making grants to relevant institutions and individuals.
GRANT MAKING POLICY
Claims for grants from Christian Science churches in support of their activities are considered by the Trustees on receipt of confirmation of estimated costs and financial need.
The majority of unrestricted income is passed to The Mother Church in Boston to pursue the activity outlined above.
ACHIEVEMENTS AND PERFORMANCE
The income of the Trust comes from donations from individuals and churches and from legacies. No public appeal is made by the Trustees for funds.
The Trust invites applications for funding of projects for the promotion and extension of the religion of Christian Science through correspondence with the Churches and the website www.christianscience.com.
The Trust made grants of £1,700,000 (2022 - £400,000) to The Mother Church during the year. The Mother Church utilises these funds to pursue the main objective of the Charity and provides annual confirmation that funds received are used for UK charitable purposes.
The Trust is able to meet all requirements made on it for financial support over a wide field of activities in support of its main purpose for the promotion and extension of Christian Science.
The Trustees are happy with the success of the continued grant making activity.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023
(continued)
FINANCIAL REVIEW
The General Fund of the Christian Science Trust in Great Britain received donations and bequests amounting to £1,467,123 (2022 - £822,393) during the year and investment income of £2,365 (2022 - £53).
Grants for charitable activities of £1,700,000 (2022 - £400,637) were made from the General Fund during the year, of which details are shown in Note 4.
The total value of the Charity was £5,552,245 (2022 - £5,899,586) at the year end, consisting of unrestricted funds of £309,473 (2022 - £544,856) and restricted funds of £5,242,772 (2022 - £5,354,730).
The charity’s investment objective is to outperform the Consumer Price Index (CPI) by 2.5% per annum. The investment portfolio fell by 0.09% during the year, excluding cash movements. However, the portfolio is managed and held in US Dollars and grew by 14.59% reflecting the exchange rate movement at the year end.
Details of movements in the various restricted funds are shown in the accounts and notes which follow, particularly Note 12 which shows all the movements in the sub-trusts.
The Restricted Funds made grants as indicated in Note 4.
Regular Trustee meetings happened via telephone/video conferencing before this due to the widespread locations of the Trustees.
RISK
The Christian Science Trust in Great Britain was not impacted by the Covid-19 outbreak. Its reserves and funding are very healthy and it is able to continue operating on normal lines with grant claims continuing to be reviewed, processed and paid when approved. On an ongoing basis, the major risk to the Charity is the exposure to market risk of the investments, but given the general financial situation and the size of the portfolio, the Trustees do not consider this a major risk to their ability to continue operations as normal.
INVESTMENT POLICY
The Christian Science Trust in Great Britain seeks to produce the best financial return within an acceptable level of risk. The investment objective is to outperform inflation by 2.5% per annum.
RESERVES POLICY
Subject to retaining approximately £100,000 in bank balances in the General and UK Restricted Activities Funds to cover future expenses, the trustees aim to distribute the total income of the unrestricted funds each year. The restricted funds are governed by the initial donor's instructions and funds are distributed as grants in accordance with the particular fund's governing document.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023
(continued)
PLANS FOR THE FUTURE
The income and donations received by the General and Restricted Funds will continue to be applied to promote and extend the religion of Christian Science in the various ways described above.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees' Report and the 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 & Wales requires the Trustees to prepare financial statements for each financial period 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 Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are 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 Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are 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.
PUBLIC BENEFIT REQUIREMENT
The Trustees have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to guidance published by the Charity Commission concerning the public benefit requirement.
APPROVAL
22/12/2023 | 17:22 GMT The Report of the Trustees was approved by the Board of Trustees on _______ and signed on its behalf by:-
J. Lardge Trustee
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INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF
THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
OPINION
We have audited the financial statements of The Christian Science Trust in Great Britain for the year ended 31st March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and the related notes, 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:
-
give a true and fair view of the state of the charity's affairs as at 31[st] March 2023 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the respective responsibilities of the Trustees and auditor 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. 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.
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INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN (continued)
OTHER INFORMATION (continued)
In connection with our audit of the financial statements, 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.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Report of the Trustees; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not obtained all the information and explanations necessary for the purposes of our audit.
RESPONSIBILITIES OF THE TRUSTEES
As explained more fully in the Trustees' responsibilities statement set out on page 5, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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.
OUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
(continued)
OUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (continued)
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 identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit.
We have gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures at charity levels to respond to the risk, recognising that risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011, taxation legislation, financial authority regulation, data protection, anti-bribery and health and safety legislation.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, inquiries with management, review of legal and professional expenditure, and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to the risk of management override included inquiries of management, their own identification and assessment of the risks of irregularities, testing on the posting of journals, reviewing accounting estimates for biases, and reading minutes of meetings of those charged with governance. Our audit procedures to respond to the risk of timing of income recognition was to review supporting documentation in relation to a sample of post year end receipts, ensuring that it met the criteria of recognition for the financial period.
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 and misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF
THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
(continued)
OUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (continued)
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 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 opinions we have formed.
Daniel Faust (Senior Statutory Auditor) For and on behalf of FLB Audit LLP Statutory Auditor 1010 Eskdale Road Winnersh Triangle Wokingham Berkshire RG41 5TS
Date: 22/12/2023 | 20:18 GMT
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31ST MARCH 2023
| General Notes Fund £ INCOME AND ENDOWMENTS FROM Donations and legacies Gifts from disbanding churches and societies 194,491 Other donations 75,280 Legacies received 1,197,352 1,467,123 Investments Investment income 3 2,365 Other activities - TOTAL INCOME 1,469,488 EXPENDITURE ON Raising funds Investment advisor's fees - Charitable activities 4 1,704,871 TOTAL EXPENDITURE 1,704,871 NET INCOME (EXPENDITURE) ( 235,383) ( Gains on investment assets - NET MOVEMENT IN FUNDS ( 235,383) ( Fund balances brought forward 544,856 FUND BALANCES CARRIED FORWARD 309,473 ======= |
General Fund £ 194,491 75,280 1,197,352 1,467,123 2,365 - |
Restricted Funds £ - - - - 97,112 8,000 |
TOTAL 2023 £ 194,491 75,280 1,197,352 1,467,123 99,477 8,000 |
TOTAL 2022 £ 303,147 116,245 403,001 822,393 71,479 10,000 903,872 25,722 480,828 506,550 397,322 579,481 976,803 4,922,783 5,899,586 ======= |
|---|---|---|---|---|
| 1,469,488 | 105,112 |
1,574,600 |
||
27,516 27,516 239,004 1,943,875 266,520 1,971,391 161,408) ( 396,791) 49,450 49,450 111,958) ( 347,341) 5,354,730 5,899,586 5,242,772 5,552,245 ======= ======= |
The notes on pages 13 to 21 form part of the financial statements.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
STATEMENT OF FINANCIAL POSITION
31ST MARCH 2023
| FIXED ASSETS Investments CURRENT ASSETS Debtors Cash at bank and in hand CREDITORS:Amounts falling due within one year NET CURRENT ASSETS NET ASSETS ACCUMULATED FUNDS |
Notes ( 6 7 8 |
General Fund see note 11) £ - 4,611 305,284 309,895 ( 422) 309,473 309,473 ====== 309,473 ====== |
Restricted Funds (see note 12) £ 4,541,554 1,525 716,943 718,468 ( 17,250) 701,218 5,242,772 ======= 5,242,772 ======= |
TOTAL 2023 £ 4,541,554 6,136 1,022,227 1,028,363 ( 17,672) 1,010,691 5,552,245 ======= 5,552,245 ======= |
TOTAL 2022 £ 4,854,535 255,471 798,161 1,053,632 ( 8,581) 1,045,051 5,899,586 ======= 5,899,586 ======= |
|---|---|---|---|---|---|
22/12/2023 | 17:22 GMT The financial statements were approved by the Board of Trustees on _______ and signed on its behalf by:-
J. Lardge Trustee
Registered Charity No. 215721
The notes on pages 13 to 21 form part of the financial statements.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST MARCH 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net movement in funds for the year | ( 347,341) | 976,803 |
| Adjust for: | ||
| Losses (gains) on investment assets | ( 49,450) | (579,481) |
| Investment income | ( 99,477) | ( 71,479) |
| Investment advisors' fees | 27,516 | 25,722 |
| Decrease (increase) in debtors | 249,335 | (240,570) |
| Increase (decrease) in creditors | 9,091 | ( 1,125) |
| Net cash flow from operating activities | ( 210,326) | 109,870 |
| ======= | ====== | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Income from E E Harris Will Trust | 27,272 | 27,943 |
| Bank interest receivable | 7,120 | 130 |
| Cash drawn from investment portfolio | 400,000 | 200,000 |
| Net cash flow from investing activities | 434,392 | 228,073 |
| ====== | ====== | |
| Net increase (decrease) in cash and cash equivalents | 224,066 | 337,943 |
| Cash and cash equivalent brought forward | 798,161 | 460,218 |
| Cash and cash equivalent carried forward | 1,022,227 | 798,161 |
| ======= | ====== |
The notes on pages 13 to 21 form part of the financial statements.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
1. GENERAL INFORMATION
The Christian Science Trust in Great Britain is an unincorporated charity and is registered with the Charity Commission for England and Wales. The registered address of the charity is PO Box 828, Godalming, Surrey GU7 9HP.
2. ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of preparation
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 in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The Charity constitutes a public benefit entity as defined by FRS 102. The 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 to these financial statements.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Preparation of the financial statements on a going concern basis
The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year’s financial statements.
In future years, the key risks to the Charities are a fall in income from donations or investment income but the Trustees have arrangements in place to mitigate those risks.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
It is the opinion of the trustees that due to the nature of the entity there are no assumptions or judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
(continued)
2. ACCOUNTING POLICIES (continued)
Fund structure
Unrestricted general funds are available to be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be used solely for particular purposes.
Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Where income is received in advance of meeting any performance related conditions and there is not unconditional entitlement to the income, its recognition is deferred and included in creditors as deferred income until the performance conditions are met.
Donations and legacies receivable for the general purposes of the charity are credited to ‘unrestricted funds’. Donations and legacies for purposes restricted by the wishes of the donor are taken to ‘restricted funds’.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable. Dividends are recognised once the dividend has been declared and notification has been received of the dividends due. This is normally upon notification by our investment advisor of the dividend yield of the portfolio.
Expenditure recognition
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
Expenditure on charitable activities includes grants made, governance costs and support costs as shown in note 4.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.
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THE CHRISTIAN SCIENCE TRUST IN GREAT BRITAIN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
(continued)
2. ACCOUNTING POLICIES (continued)
Fixed asset 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 statement of financial position 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 Charity 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.
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 sales 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. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Debtors
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
Cash and cash equivalents
Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due.
Creditors
Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.
Foreign currency transactions
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the Statement of Financial Activities. As the foreign currency gains or losses relate wholly to fixed asset investments, exchange differences are taken into account in arriving at the investment gains or losses shown in the Statement of Financial Activities.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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3. INVESTMENT INCOME
| Bank interest receivable Income from managed funds E E Harris Will Trust 4. CHARITABLE ACTIVITIES Grants to Institutions The Mother Church - for furthering primary objective of UK charity UK Mini Focus Summit Pupils of Rosemary Cobham Society Branch Churches and Societies for facility improvements Branch Churches for lectures Grants to Individual Practitioners for attendance at conferences Consultant for publishing activities |
General Fund £ 2,365 - - 2,365 ==== General Fund £ 1,700,000 - - - - 1,700,000 ======= - - - ==== |
Restricted Funds £ 4,755 65,085 27,272 97,112 ===== Restricted Funds £ - 62,100 23,817 86,097 4,943 153,140 ====== 2,888 - 2,888 ==== |
TOTAL 2023 £ 7,120 65,085 27,272 99,477 ===== TOTAL 2023 £ 1,700,000 62,100 23,817 86,097 4,943 1,853,140 ======= 2,888 - 2,888 ==== |
TOTAL 2022 £ 130 43,406 27,943 71,479 ===== TOTAL 2022 £ 400,000 - - 36,229 4,506 440,735 ====== - 637 637 ===== |
|---|---|---|---|---|
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4. CHARITABLE ACTIVITIES (continued)
| General | Restricted | TOTAL | TOTAL | |
|---|---|---|---|---|
| Fund | Funds | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Support costs | ||||
| Trustees' remuneration | - | 7,544 | 7,544 | 6,967 |
| Administrator's fees | - | 16,746 | 16,746 | 16,055 |
| Auditor's remuneration | ||||
| - for other services | - | - | - | 1,320 |
| Legal and professional | - | 19,002 | 19,002 | 3,780 |
| Printing, postage and stationery | - | 459 | 459 | 660 |
| Meeting and subsistence expenses | - | 3,711 | 3,711 | 3,124 |
| Telephone and internet | - | 585 | 585 | 529 |
| Computer costs | - | 806 | 806 | - |
| Sundry expenses | - | - | - | 71 |
| Bank charges and | ||||
| lock box administration | 4,871 | 106 | 4,977 | 3,710 |
| 4,871 | 48,959 | 53,830 | 36,216 | |
| ==== | ===== | ===== | ===== | |
| Governance costs | ||||
| Trustee training | - | 1,200 | 1,200 | - |
| Auditor's remuneration | ||||
| - for audit services | - | 9,000 | 9,000 | 5,400 |
| - adjustment re prior year | - | - | - | (2,160) |
| - | 10,200 | 10,200 | 3,240 | |
| ==== | ===== | ===== | ===== | |
| Total Charitable Activities | 1,704,871 | 239,004 | 1,943,875 | 480,828 |
| ======= | ====== | ======= | ====== |
All costs are allocated to the single activity of the charity – the promotion and extension of the religion of Christian Science as taught by Mary Baker Eddy.
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5. TRUSTEE REMUNERATION AND EXPENSES
Trustees are entitled to be remunerated for their services under the governing document.
It has been the position for many years that the Trustees be paid a nominal amount for the time spent on duties concerning the activities and management of the charity, including consideration and approval of grants.
| Trustees' Remuneration R. Brown G. Chaplin P. Allen P. Daniel S. McGrath J. Lardge |
2023 £ 1,886 300 1,586 - 1,886 1,886 7,544 ==== |
2022 £ 1,742 1,742 - 241 1,500 1,742 |
||
|---|---|---|---|---|
= |
= |
6,967 ==== |
Reimbursed expenses to the Trustees amounted to £442 (2022 - £430) for travel. Three (2022 - four) Trustees were so reimbursed during the year.
6.
FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Managed Funds | ||
| Market value brought forward | 4,854,535 | 4,457,370 |
| Investment income re-invested | 65,085 | 43,406 |
| Investment fees deducted | ( 27,516) | ( 25,722) |
| Cash withdrawn from managed funds | ( 400,000) | ( 200,000) |
| Realised and unrealised gains (losses) for the year | ( 298,587) | 387,859 |
| Foreign exchange gains | 348,037 | 191,622 |
| Market value carried forward | 4,541,554 | 4,854,535 |
| ======= | ======== |
7. DEBTORS
| Accrued income and prepayments | 2023 2022 £ £ 6,136 255,471 ==== ====== |
|---|---|
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8. CREDITORS: amounts falling due within one year
| 2023 £ Accruals and other creditors 17,672 ===== = |
2022 £ 8,581 ==== |
|---|---|
9. CONTINGENT ASSETS
In 2018 the Trust was notified of a legacy of £867,670. However, the capital of the legacy is to be used to provide a life interest for the donor's children and grandchildren. Accordingly, due to uncertainty over the timing of the availability of funds for distribution to the Trust, the value of the legacy has not been included in the financial statements.
The Trust was notified of their entitlement to certain legacies prior to the year end. However, the precise value of these legacies could not be ascertained at that time. Since the year end £2,246,698 has been received in respect of these legacies.
10. RELATED PARTY TRANSACTIONS
Managements fees of £8,000 (2022 - £10,000) were paid to The Christian Science Trust in Great Britain by The Westminster Fund to help cover joint administration and support costs incurred on behalf of both charities. The Westminster Fund is considered a related party by virtue of common control through mutual trustees.
Investment income of £27,272 (2022 - £27,943) was received from the E E Harris Will Trust. The Christian Science Trust in Great Britain is the sole beneficiary of the E E Harris Will Trust which is set up as an Endowment Fund. The Chair of The Christian Science Trust in Great Britain is one of the Trustees of the E E Harris Will Trust.
11. GENERAL FUND
| Movements on the undesignated general fund during the year:- Fund Balance brought forward Incoming resources Resources expended Fund Balances carried forward The assets of the fund:- Current assets Current liabilities Net assets |
2023 £ 544,856 1,469,488 (1,704,871) ( 309,473 ======= 309,895 ( 422) 309,473 ====== |
2022 £ 126,647 822,446 404,237) 544,856 ====== 545,287 ( 431) 544,856 ====== |
|---|---|---|
= |
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12. RESTRICTED FUNDS
| RESTRICTED FUNDS | ||||
|---|---|---|---|---|
| UK | Miss | Churches | ||
| Restricted | Cobham | Support | ||
| Activities | Bequest | Fund | Total | |
| £ | £ | £ | £ | |
| Movements during the current year | ||||
| on each fund:- | ||||
| Fund Balances at 1.4.2022 | 1,721,347 | 1,490,934 | 2,142,449 | 5,354,730 |
| Incoming resources | 58,048 | 20,469 | 26,595 | 105,112 |
| Resources expended | ( 143,814) | ( 32,387) | ( 90,319) | ( 266,520) |
| Investment losses | ( 96,387) | ( 79,120) | ( 123,080) | ( 298,587) |
| Foreign exchange gains | 112,371 | 92,296 | 143,370 | 348,037 |
| Fund Balances at 31.3.2023 | 1,651,565 | 1,492,192 | 2,099,015 | 5,242,772 |
| ======= | ======= | ======= | ======= | |
| The assets of the funds:- | ||||
| Fixed asset investments | 1,541,033 | 1,476,261 | 1,524,260 | 4,541,554 |
| Current assets | 127,782 | 15,931 | 574,755 | 718,468 |
| Current liabilities | ( 17,250) | - | - | ( 17,250) |
| Net assets | 1,651,565 | 1,492,192 | 2,099,015 | 5,242,772 |
| ======= | ======= | ======= | ======= | |
| Movements during the previous year | ||||
| on each fund:- | ||||
| Fund Balances at 1.4.2021 | 1,537,969 | 1,316,024 | 1,942,143 | 4,796,136 |
| Incoming resources | 52,122 | 12,751 | 16,553 | 81,426 |
| Resources expended | ( 57,315) | ( 7,578) | ( 37,420) | ( 102,313) |
| Investment gains | 125,266 | 112,755 | 149,838 | 387,859 |
| Foreign exchange losses | 63,305 | 56,982 | 71,335 | 191,622 |
| Fund Balances at 31.3.2022 | 1,721,347 | 1,490,934 | 2,142,449 | 5,354,730 |
| ======= | ======= | ======= | ======= | |
| The assets of the funds:- | ||||
| Fixed asset investments | 1,612,446 | 1,451,402 | 1,790,687 | 4,854,535 |
| Current assets | 117,051 | 39,532 | 351,762 | 508,345 |
| Current liabilities | ( 8,150) | - | - | ( 8,150) |
| Net assets | 1,721,347 | 1,490,934 | 2,142,449 | 5,354,730 |
| ======= | ======= | ======= | ======= |
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12. RESTRICTED FUNDS (continued)
The ' Miss Cobham Bequest' . The income from this Fund is to be applied in giving financial assistance to any members of The Christian Science Student Association of the Pupils of Rosemary Cobham CSB who may be in need of help - as defined in a memorandum dated 8[th] July 1974.
The ' Churches Support Fund' was set up by resolution of the Trustees dated 7[th] December 1998 to replace the Brixton Fund, which was then coming to an end, to apply the capital and the income thereof for the advancement of the religion of Christian Science in the United Kingdom and/or the Channel Islands, including in particular the provision of financial assistance to Christian Science Branch Churches, Societies and Informal Groups in the United Kingdom and/or the Channel Islands which are able to demonstrate a special need for funds.
The ' UK Restricted Activities' Fund consists mainly of the balance of the Peccorini Bequest, the Arthur Hanson Trust Fund and income arising from the EE Harris Will Trust which are for the use of the Trustees within the UK only. The Trustees can apply the capital and income within the United Kingdom for the purpose of promoting and extending the religion of Christian Science as taught by Mary Baker Eddy, and such other charitable purposes as the Trustees shall think fit and which are supportive of and consistent with the teachings and practice of the religion.
13. ANALYSIS OF CHANGES IN NET DEBT
| Cash at bank | At start of year £ 798,161 ====== |
At end Cash flows of year £ £ 224,066 1,022,227 ====== ====== |
|---|---|---|