**ANNUAL REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 Registered charity No: 221040**
## **CONTENTS**
|Trustees|Trustees||1|
|---|---|---|---|
||||6|
|Statement of Financial Activities|||9|
|Balance Sheet|||10|
|Cash Flow Statement|||11|
|Notes to the Financial Statements|||12|
|**The following pages are for information only and do not form part of the audited financial statements**||||
|Income and expenditure account|||21|
## **TRUSTEES**
## **For the year ended 31 December 2020**
The Trustees present their report and financial statements for the year ended 31 December 2020.
## **Reference and Administrative Information**
|Charity Name|Sain|||
|---|---|---|---|
|Charity Registration Number|221040|||
|Trustees - appointed for life|The Venerable H J Osborne|||
||The Revd Canon A M Weaver|||
||The Very Revd D R M||Monteith|
||The Revd Canon Q D Warbrick|||
||The Revd Canon Dr J||W Woodward|
|Trustees - Co-opted (appointed for four years)|The Revd Canon R F Pailing|||
||The Revd Canon A A Gorham|||
|Clerk to the Trustees|Mrs L A Davis|||
|Registered office|No.1 Colmore Square|||
||Birmingham|||
||B4 6AA|||
|Bankers|Lloyds Bank Plc|||
||Colmore Row|||
||Birmingham|||
||B3 3SD|||
|Auditors|Cooper Parry Group Limited|||
||Park View|||
||One Central Boulevard|||
||Blythe Valley Park|||
||Solihull|||
||B90 8BG|||
|Solicitors|Shakespeare Martineau LLP|||
||No.1 Colmore Square|||
||Birmingham|||
||B4 6AA|||
|Investment managers|EFG Harris Allday|||
||33 Great Charles Street|||
||Birmingham|||
||B3 3JN|||
|Property managers|Cushman & Wakefield|||
||No.1 Colmore Square|||
||Birmingham|||
||B4 6AA|||
Page 1
## **TRUSTEES**
## **For the year ended 31 December 2020**
## **Structure, Governance and Management**
## **The constitution and patronage**
der 1964, as varied or effected by the Scheme of the Charity Commissioners sealed on 2 November 2006.
Before the Act in 1893, the then Rector of St Martin settled the advowson of St Martin and of three other parishes, namely St George, St Thomas and All Saints, upon five Trustees, the settlement requiring that the Trustees should always be ordained clergy of the Church of England. The Trustees are appointed for life. The five Trustees may co-opt up to two further Trustees by virtue of clause 5 of a Scheme of the Charity Commission dated 2006. Co-opted Trustees are appointed for 4 years. On various dates the patronage of additional churches has been transferred to the Trustees. The patronage of the following parishes is at present held by the Trustees:
St Martin, St George, St Paul and St Mark, Bishop Latimer, St John and St Peter, and St Matthew (Perry Beeches): St Germain (Edgbaston) and St John (Perry Barr) (jointly with Bishop of Birmingham): and St Luke Trustees). By established tradition the Trustees also support the parish of Christchurch Summerfield (the patron of which is the Rector of St Martin).
Section 2 of the Act vests the Five Ways Lands (formerly a portion of the Glebe Lands belonging to the rectory Trustees and Section 4 gives them powers of sale, leasing, mortgaging and other necessary powers. Section 6 of the Act (as amended) provides for the use of income for the benefit of incumbents of parishes within the diocese of Birmingham.
The Scheme at 2 November 2006 inserts an appendix to the 1964 Order which enables the Trustees to apply any remaining income of the charity in furtherance of the religious or charitable work of the Church of England in the Diocese of Birmingham.
## **Recruitment and appointment of Trustees**
The Trustees of the charity who served during the year and up to the date of this report are set out below:
Appointed for life:
The Venerable H J Osborne The Revd Canon A M Weaver The Very Revd D R M Monteith The Revd Canon Q D Warbrick The Revd Canon Dr J W Woodward
Co-opted (appointed for four years):
The Revd Canon R F Pailing The Revd Canon A A Gorham
## **Trustee induction and training**
New Trustees are made aware of their responsibilities and are helped to familiarise themselves with the latest published accounts and appropriate Charity Commission publications.
Page 2
## **TRUSTEES**
## **For the year ended 31 December 2020**
## **Risk management**
The Trustees have reviewed the major strategic and operational risks to which the charity is exposed and are satisfied that management reporting systems are in place to minimise the effects of any such risks as may exist. The investment managers are EFG Harris Allday, the property managing agents are Cushman & Wakefield, both of whom provide regular reports from which the Trustees take appropriate action. The Trustees review the performance of the investments and of the investment adviser on a regular basis.
## **Organisational structure**
The Trustees meet twice a year, with the Annual General Meeting held in May. A sub-committee of the Trustees meet as necessary to, for example, interview candidates for vacancies of benefices. The day to day management of the Trust is conducted by the clerk who liaises with the chairman as necessary.
## **Objectives and Activities**
The overall objective of the charity is to support the Clergy of the Church of England within the Diocese of Birmingham and specifically within the Ancient Parish of St Martin and the other parishes of which the Trustees are patrons, or share the patronage.
The objectives are achieved by the making of grants, subject to conditions imposed by the Trustees (such as specifically for the maintenance of curates), and the making of gifts or loans for or towards activities within the Parishes lying within the beneficial area and the maintenance of the accommodation of the incumbents.
The Trustees activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives set.
## **Review of Activities**
The Trustees continue to provide support for the nine parishes of which they are Patrons and the parish of Christchurch Summerfield. This support is in the form of a contribution to the Birmingham Diocesan Board of Finance towards payment of stipends, pensions, national insurance and council tax, and payments to the Clergy for assistance with heating, gardening and secretarial expenses and individual projects in the parishes. The Trustees also provide support to the Birmingham Diocesan Board of Finance by agreeing payments of £30,000 for each of the three years 2019-2021 to the fund supporting Curates in Training.
## **Financial Review**
The principal funding of the charity is from the collection of rents received from the properties held. Rental income for the year was £664,156 (2019: £435,193). Investment income from its share portfolio yielded £133,718 (2019: £178,391) in the year.
Spending on charitable activities increased from £612,723 to £628,740. Note 3 to the financial statements provides details of the Stipend payments made during the year together with payments made for ministerial support.
Investment management costs comprise legal fees (in connection with the management of the charity and the prope gents. These fees have increased from £52,434 to £120,653 this year.
Support costs and governance costs are detailed at notes 4 and 6 to the financial statements respectively.
Page 3
## **TRUSTEES**
## **For the year ended 31 December 2020**
## **Investment policy**
There are no restrictions on the Trustees Trustees seek to maintain a consistent investment strategy based on their view of the medium term economic situation, their desire to secure the advice of their investment managers who produce regular reports for consideration by the Trustees.
The
## **Ethical Investments**
The Trustees affirm their freedom of power to invest. However, they do have regard to the Church of England particular circumstances. The statement is drawn to the attention of the investment managers in exercising behalf, a discretion about which they consult from time to time.
## **Grant making policy**
The sum of £296,044 (2019: £265,048) was paid out to cover payments of stipend to incumbents in support of their ministry, and the sum of £325,588 (2019: £339,512) was paid out for ministerial support.
The Act formerly restricted the Trustees grant making to making payments to or for the benefit of incumbents Trustees will also consider applications for financial assistance from those incumbents who seek administrative and other help in funding their pursuit of alternative purposes when income permits and for example payments are now made to assist with music in churches and employment of staff by some parishes to expand activities.
## **Reserves policy**
It is the policy of the Trustees to maintain unrestricted funds which are the general funds of the Charity at a level which provides sufficient funds to cover management, administration and support costs and to meet their continuing obligations for at least two years.
Free reserves are defined as those unrestricted funds that are not invested in fixed assets (i.e. those reserves which are liquid and readily available to the Trustees).
The general funds of the charity equal the free reserves as none of these funds are tied up in non-liquid assets. Note 11 to the financial statements provides an analysis of the general fund. At the year-end general funds amounted to £2,800,754 of which £2,738,662 is represented by investments and bank deposits, the remaining funds of £62,092 relate to other current assets and current liabilities.
As much of the Trustees against the time when income may be reduced.
Page 4
## **TRUSTEES**
## **For the year ended 31 December 2020**
## **Statement of Trustees**
The Trustees are responsible for preparing the Trustees Annual 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 and Wales requires the Trustees 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 Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 2008 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.
In so far as the trustees are aware:
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Auditors**
Cooper Parry Group Limited have expressed their willingness to continue to act a resolution for their re-appointment will be made at the Annual General Meeting.
20 May 2021 Approved by the Board of Trustees on _________________________ and signed on its behalf by:
## **Trustee**
Page 5
## **INDEPENDENT AUDITOR S REPORT TO THE TRUSTEES OF**
## **Opinion**
We have audited the financial statements of ended 31st December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 e Financial Reporting Practice).
In our opinion the financial statements:
- December 2020 and of its
- incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 F 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**
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 going concern for a period of at least 12 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 n and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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.
Page 6
## **INDEPENDENT AUDITOR S REPORT TO THE TRUSTEES OF**
## **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:
- the information given in the financial statements is inconsistent in any material respect with the
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
5, 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 f 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.
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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Our assessment focussed on key laws and regulations the Charity has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Charities Act 2011, Charities (Accounts and Reports) Regulations 2008, Charities (Protection and Social Investment) Act 2016, taxation legislation, data protection, anti-bribery and employment legislation.
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
- obtaining an understanding of the legal and regulatory framework applicable to the Charity and how the Charity is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- relevant control procedures, through discussions with Trustees and management and by performing walkthrough testing over key areas;
- reviewing meeting minutes of those charged with governance throughout the year; and
Page 7
## **OF**
- performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of activities and reviewing accounting estimates for bias.
Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
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. 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
## **Use of our report**
(Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters which 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.
**COOPER PARRY GROUP LIMITED** Statutory Auditor
One Central Boulevard, Blythe Valley Business Park Solihull, West Midlands, B90 8BG Statutory Auditor
## Date: 21 October 2021
Cooper Parry Group Limited is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.
Page 8
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **For the year ended 31 December 2020**
|**Note**
**Income and endowments from:**
Investments
2
**Total income and endowments**
**Expenditure on:**
Investment management costs
5
Charitable activities
3
**Total expenditure**
Net (losses) / gains on investments
8
Net gain on investment properties
7
**Net movement in funds**
**Reconciliation of funds**
Fund balances at 1 January 2020
**Fund balances at 31 December 2020**
|**2020**
**2020**
**2020**
**Endowment Unrestricted**
**Total**
**Funds**
**General**
**Funds**
**Funds**
**£**
**£**
**£**
-
797,874
797,874
______
_______
_______
-
797,874
797,874
______
_______
_______
-
120,653
120,653
-
628,740
628,740
______
_______
_______
-
749,393
749,393
______
_______
_______
(126,718)
(101,712)
(228,430)
-
-
-
(126,718)
(53,231)
(179,949)
13,180,328
2,853,985 16,034,313
13,053,610
2,800,754 15,854,364|**2019**
**Total**
**Funds**
**£**
613,584
_______
613,584
_______
52,434
612,723
_______
665,157
_______
584,539
2,355,000
2,887,966
13,146,347|
|---|---|---|
|||16,034,313|
All incoming resources and resources expended are derived from continuing activities. There are no other gains and losses other than those recognised above and accordingly no separate statement of total recognised gains and losses has been prepared.
Page 9
## **BALANCE SHEET**
## **at 31 December 2020**
|||**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
|**Fixed Assets Note**|**Fixed Assets Note**|||
|Investment properties|7|11,365,000|11,365,000|
|Investments|8|4,253,838|4,272,590|
|||_________|_________|
|||15,618,838|15,637,590|
|**Current Assets**||||
|Debtors|9|310,032|137,650|
|Cash at bank||125,409|212,599|
|Cash held by investment manager||48,025|265,519|
|||483,466|615,768|
|**Creditors:**amounts falling due within||||
|one year|10|(247,940)|(219,045)|
|**Net current assets**||235,526|396,723|
|**Net assets**||15,854,364|16,034,313|
|**Reserves**||||
|Unrestricted general fund|11/12|2,800,754|2,853,985|
|Endowment fund|11/12|13,053,610|13,180,328|
|**Total Charity funds**||15,854,364|16,034,313|
|The notes on pages 12 to 20 form part of the financial statements.|The notes on pages 12 to 20 form part of the financial statements.|||
|Approved by the Board of Trustees on ___________________ and signed on its behalf by:|Approved by the Board of Trustees on ___________________ and signed on its behalf by:
20 May 2021|||
**Trustee:**
**Trustee:**
Page 10
## **STATEMENT OF CASH FLOWS**
## **For the year ended 31 December 2020**
|Note
**2020**
**£**
**Cash flows from operating activities**
Net cash used in operating activities
15
(892,881)
_________
**Cash flows from investing activities**
Dividends, interest and rents from investments
797,874
Proceeds from sale of investments
1,138,094
Purchase of investments
(1,347,771)
**Net cash provided by investing activities**
588,197
**Change in cash and cash equivalents in the reporting period**
(304,684)
Cash and cash equivalents at the beginning of the period
478,118
Cash and cash equivalents at the end of the period
173,434
**Analysis of cash and cash equivalents**
Cash in hand
125,409
Cash held by investment manager
48,025
**Total cash and cash equivalents**
173,434
**Analysis of changes in net debt**
**At 1-Jan-**
**20**
**Cashflows**
**£**
**£**
Cash at bank and in hand
478,118
(304,684)|**2019**
**£**
(666,711)
_________
613,584
1,415,495
(1,174,977)
854,102
187,391
290,727
478,118
212,599
265,519
478,118
**At 31-Dec-**
**20**
**£**
173,434|
|---|---|
Page 11
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
## **1 Principal accounting policies**
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.
## **Basis of preparation and general information**
is a (Birmingham) Act 1983 in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.
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 (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
## **Going concern**
At the balance sheet date the charity had a significant investment holding. At the time of signing these financial statements, the Trustees have considered the effect of the Covid-19 pandemic on the long-term investment holding and hence on the going concern position. The Trustees consider that this does not present a major risk and that the charity will continue in operation for a period of at least 12 months from the date of signing these accounts, due to the close monitoring of its investments and already low risk approach to investment holding.
On that basis, the Trustees have prepared these financial statements on a going concern basis.
## **Funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Endowment funds represent those assets which must be held permanently by the charity, principally property and investments. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income.
Page 12
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
## **Incoming resources**
All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Investment income is earned through holding assets such as shares and properties. It includes dividends, interest and rent. Income is included when the amount can be measured reliably.
All income and expenditure is stated gross unless otherwise indicated.
Income arising on the endowment fund can be used in accordance with the objects of the Charity and is included in unrestricted income.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries.
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Investments**
Investments are initially recognised at their transaction value and subsequently measured at their market value at the year end using the closing quoted market price. Any surplus or deficit on revaluation or sale being included in the Statement of Financial Activities.
## **VAT**
The charity is partially exempt for VAT. Value added tax which is not recoverable by the charity is written off as irrecoverable VAT within support costs.
## **Investment properties**
Investment properties are included in the balance sheet at the Trustees taking account of professional advice. They are regularly revalued and the resultant surpluses or deficits are taken to the Statement of Financial Activity as an investment gain or loss. In accordance with FRS 102, no depreciation is provided on investment properties.
Page 13
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
## **2 Income from investments**
|**Rents receivable**
Block B
Block C
City Tavern
Guildhall
Norwich
Trentham Lakes
Unit B, Cranmore Park
**Investment income**
Dividends
UK equities
Interest
UK fixed interest securities
**Total income from investments**|**2020**
**£**
116,734
70,108
2,316
78,500
176,875
219,623
_______
664,156
**2020**
**£**
115,976
17,742
_______
133,718
797,874|**2019**
**£**
116,734
69,858
2,566
78,500
-
167,535
_______
435,193|
|---|---|---|
|||**2019**
**£**
158,068
20,323
_______
178,391|
|||613,584|
Investment income was wholly attributable to unrestricted funds in the current and previous period.
Page 14
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
## **3 Grants payable in furtherance of charitable objectives**
|**Contributions to payments of incumbents stipends, pensions,**
**council tax and national insurance**
St George
St Paul
St John and St Peter, Ladywood
Christ Church
St Matthew
St John, Perry Barr
St Luke
St Martin
St Germain
**Payment of ministerial support**
Secretarial, heating, and gardening
St Martin
St Luke
Christ Church
St Paul
St Matthew
St George
St John and St Peter, Ladywood
St John, Perry Barr
St Germain
Bishop Latimer
Birmingham Diocese - Curates in Training
Birmingham Diocese
Grants for Sabbatical Placements
General Grant to Birmingham Diocese
Swanwick grant
GAP Youth Project
Total grants payable
Support costs (note 4)
Governance costs (note 6)
**Total expenditure on charitable activities**|**2020**
**£**
40,373
16,668
40,373
-
37,138
40,373
40,373
40,373
40,373
296,044
9,100
79,912
18,975
23,776
28,617
14,583
21,200
35,000
15,916
38,289
5,720
30,000
4,500
-
-
-
325,588
621,632
458
6,650
_______
628,740|**2019**
**£**
38,240
-
38,240
6,376
38,240
38,240
38,240
38,240
29,232|
|---|---|---|
|||265,048|
|||7,800
84,360
18,604
16,274
22,508
15,184
20,500
28,000
9,124
53,909
10,149
30,000
10,000
5,100
8,000|
|||339,512|
|||604,560
636
7,527
_______
612,723|
Expenditure on charitable activities was wholly attributable to unrestricted funds in the current and previous period.
Page 15
## **NOTES TO THE FINANCIAL STATEMENTS**
**for the year ended 31 December 2020**
## **4 Support costs**
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Travelling and other expenses|458|636|
Trustees received no remuneration and four (2019: five) Trustees were reimbursed £458 (2019: £636) for their expenses in the year.
## **5. Investment management costs**
|General legal charges
Cushman & Wakefield management fees
Professional fees
**6.**
**Governance costs**
AGM costs
|**2020**
**£**
81,004
29,977
9,672
______
120,653
**2020**
**£**
6,650
-
_______
6,650|**2019**
**£**
26,378
23,356
2,700
_______
52,434|
|---|---|---|
|||**2019**
**£**
6,170
1,357
_______
7,527|
Page 16
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
|**7.**
**Investment properties**
Value at 1 January 2020
Revaluation in the year
**Value at 31 December 2020**|**2020**
**£**
11,365,000
-
11,365,000|**2019**
**£**
9,010,000
2,355,000
11,365,000|
|---|---|---|
The closing value of properties is represented by:
|The closing value of properties is represented by:|||
|---|---|---|
||**2020**|**2019**|
|**Freehold investment property**|**£**|**£**|
|Unit B Cranmore Park|3,000,000|3,000,000|
|Block B- Broad Street|2,430,000|2,430,000|
|Block C_-_187 Broad Street|1,545,000|1,545,000|
|6/7 Guildhall Hill|1,090,000|1,090,000|
|Trentham Lakes|3,300,000|3,300,000|
||11,365,000|11,365,000|
The investment properties are held at the open market value at the balance sheet date. In ascertaining the open market value the Trustees have taken professional advice obtained from their property managing agents Cushman and Wakefield. The last valuation was undertaken on 31 December 2019.
The properties were valued by an external valuer, Mr J Crawford MRICS of Cushman and Wakefield. The valuation has been made in accordance with the appropriate section of the current Practice Statement and Guidance Notes contained within the Appraisal and Valuation Manual issued by the aluers, acting as independent valuers, qualified for the purpose of valuation.
The value of the properties has been assessed in accordance with the relevant parts of the current RICS Appraisal and Valuation manual. The properties are stated at Practice Statement 3.2.
The Trustees consider there has been no material variation in the value of the property portfolio during the year.
Page 17
## **NOTES TO THE FINANCIAL STATEMENTS**
**for the year ended 31 December 2020**
## **8. Investments**
|**2020**
**2020**
**2020**
**Permanent**
**General**
**Endowment**
**Investments**
**Total**
**£**
**£**
**£**
Market value at 1 January 2020
1,745,433
2,527,157 4,272,590
Additions at cost
502,413
845,358 1,347,771
Disposal proceeds
(454,466)
(683,627) (1,138,093)
Unrealised (loss)/gain
(76,078)
(53,084)
(129,162)
Realised (loss)/gain
(50,640)
(48,628)
(99,268)
_______
________ ________
**Market value at 31 December 2020**
1,666,662
2,587,176 4,253,838
**Historical Cost:**
Permanent Endowment
1,509,661
General Investments
2,356,800
________
3,866,461
All investments are listed securities.
**9.**
**Debtors**
**2020**
**£**
Rent
310,032
**10.**
**Creditors**
**2020**
**£**
Accruals
106,860
Deferred income
114,551
VAT
26,529
_______
247,940|**2020**
**2020**
**2020**
**Permanent**
**General**
**Endowment**
**Investments**
**Total**
**£**
**£**
**£**
Market value at 1 January 2020
1,745,433
2,527,157 4,272,590
Additions at cost
502,413
845,358 1,347,771
Disposal proceeds
(454,466)
(683,627) (1,138,093)
Unrealised (loss)/gain
(76,078)
(53,084)
(129,162)
Realised (loss)/gain
(50,640)
(48,628)
(99,268)
_______
________ ________
**Market value at 31 December 2020**
1,666,662
2,587,176 4,253,838
**Historical Cost:**
Permanent Endowment
1,509,661
General Investments
2,356,800
________
3,866,461
All investments are listed securities.
**9.**
**Debtors**
**2020**
**£**
Rent
310,032
**10.**
**Creditors**
**2020**
**£**
Accruals
106,860
Deferred income
114,551
VAT
26,529
_______
247,940|**2020**
**2020**
**2020**
**Permanent**
**General**
**Endowment**
**Investments**
**Total**
**£**
**£**
**£**
Market value at 1 January 2020
1,745,433
2,527,157 4,272,590
Additions at cost
502,413
845,358 1,347,771
Disposal proceeds
(454,466)
(683,627) (1,138,093)
Unrealised (loss)/gain
(76,078)
(53,084)
(129,162)
Realised (loss)/gain
(50,640)
(48,628)
(99,268)
_______
________ ________
**Market value at 31 December 2020**
1,666,662
2,587,176 4,253,838
**Historical Cost:**
Permanent Endowment
1,509,661
General Investments
2,356,800
________
3,866,461
All investments are listed securities.
**9.**
**Debtors**
**2020**
**£**
Rent
310,032
**10.**
**Creditors**
**2020**
**£**
Accruals
106,860
Deferred income
114,551
VAT
26,529
_______
247,940|**2019**
**Total**
**£**
3,928,569
1,174,977
(1,415,495)
440,643
143,896
________
4,272,590
1,485,855
2,130,944
________
3,596,799
**2019**
**£**
137,650
**2019**
**£**
80,954
126,226
11,865
_______
219,045|
|---|---|---|---|
|||||
|||**2020**
**£**
106,860
114,551
26,529
_______
247,940||
Deferred income relates to rental amounts invoiced in the current year (and included within debtors) which relate to the period 25 December 2020 to 24 March 2021 and which will be recognised in the s financial statements.
Page 18
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for year ended 31 December 2020**
## **11. Statement of funds**
||**Balance at**|**Income**|**Expenditure**|**Gains /**|**Balance at**|
|---|---|---|---|---|---|
||**2019**|||**(losses)**|**2020**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**||||||
|General fund|2,853,985|797,874|(749,393)|(101,712)|2,800,754|
|**Endowment Funds**||||||
|Endowment fund|13,180,328|-|-|(126,718)|13,053,610|
||_________|_________|_________|_________|_________|
|Total of funds|16,034,313|797,874|(749,393)|(228,430)|15,854,364|
The unrestricted general fund comprises those funds which the Trustees are free to use in accordance with the charitable objects.
The endowment fund represents those assets which must be held permanently by the Charity, principally property and investments. Income arising on the endowment fund can be used in accordance with the objects of the Charity and is included in unrestricted income.
Any capital gains or losses arising on the investment form part of the fund. Investment management charges and legal advice relating to the fund are charged against the general fund.
## **Statement of funds prior year**
||**Balance at**|**Income**|**Expenditure**|**Gains /**|**Balance at**|
|---|---|---|---|---|---|
||**2018**|||**(losses)**|**2019**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**||||||
|General fund|2,567,043|613,584|(665,157)|338,515|2,853,985|
|**Endowment Funds**||||||
|Endowment fund|10,579,304|-|-|2,601,024|13,180,328|
||_________|_________|_________|_________|_________|
|Total of funds|13,146,347|613,584|(665,157)|2,939,539|16,034,313|
## **12. Analysis of funds**
|**Analysis of funds**||||
|---|---|---|---|
||**General**|**Endowment**||
||**Fund**|**Fund**|**Total**|
||**£**|**£**|**£**|
|Investment properties|-|11,365,000|11,365,000|
|Investments|2,587,176|1,666,662|4,253,838|
|Debtors|310,032|-|310,032|
|Bank balances and investment manager cash balances|151,486|21,948|173,434|
|Creditors|(247,940)|-|(247,940)|
||_________|________|________|
||2,800,754|13,053,610|15,854,364|
Page 19
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for year ended 31 December 2020**
## **12. Analysis of funds (continued) prior year**
||**General**|**Endowment**||
|---|---|---|---|
||**Fund**|**Fund**|**Total**|
||**£**|**£**|**£**|
|Investment properties|-|11,365,000|11,365,000|
|Investments|2,527,157|1,745,433|4,272,590|
|Debtors|137,650|-|137,650|
|Bank balances and investment manager cash balances|408,223|69,895|478,118|
|Creditors|(219,045)|-|(219,045)|
||_________|________|________|
||2,853,985|13,180,328|16,034,313|
## **13. Taxation**
As a sections 485 and 486 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen within the charity.
## **14. Related party transactions**
During the year payments of £81,004 (2019: £26,378) were made to Shakespeare Martineau LLP for legal services provided to the charity. Mrs L A Davis, current clerk to the Trustees, is a partner in Shakespeare Martineau LLP.
## **15. Reconciliation of net income to net cash flow from operating activities**
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Net (expenditure) / income for the reporting period|(179,949)|2,887,966|
|Losses / (gains) on investments|228,430|(2,939,539)|
|Dividends, interest and rents from investments|(797,874)|(613,584)|
|Increase in debtors|(172,382)|(20,366)|
|Increase in creditors|28,894|18,812|
||________|________|
|**Net cash used in operating activities**|(892,881)|(666,711)|
Page 20
## **NOTES TO THE FINANCIAL STATEMENTS**
## **for year ended 31 December 2020 INCOME AND EXPENDITURE ACCOUNT**
|**INCOME**
Rents receivable
Net income from investments Dividends
Stock interest
**EXPENSES**
Contributions to payments of stipends, council tax
and national insurance:
St George
St Paul
St John & St Peter Ladywood
Christ Church
St Matthew
St John, Perry Bar
St Luke
St Martin
St Germain
Birmingham Diocese
Curates in Training
Severance and wages
Swanwick grant
GAP Youth Project
Ministerial support
Shakespeare Martineau LLP fees
Auditor
Cushman & Wakefield management fees
Travelling and other expenses
AGM expenses
Professional fees
**SURPLUS / (DEFICIT) FOR YEAR**|**2020**
**£**
**£**
664,156
115,976
17,742
_______
797,874
40,373
16,668
40,373
-
37,138
40,373
40,373
40,373
40,373
296,044
30,000
-
-
-
295,588
(621,632)
81,004
6,650
29,977
458
-
9,672
(127,761)
_______
48,481||**2019**
**£**
**£**
435,193
158,068
20,323
_______
613,584
38,240
-
38,240
6,376
38,240
38,240
38,240
38,240
29,232
265,048
30,000
10,000
8,983
8,000
282,089
(604,560)
26,378
8,170
23,356
636
1,357
2,700
(60,597)
________
(51,573)|
|---|---|---|---|
|||||
This page is for the information of the Trustees only and does not form part of the statutory accounts.
Page 21
## **INCOME AND EXPENDITURE ACCOUNT**
## **For year ended 31 December 2020**
|**2020**
**£**
**RENTS RECEIVABLE**
Block B
116,734
Block C
70,108
Guildhall
78,500
City Tavern
2,316
Trentham Lakes
176,875
Unit B, Cranmore Park
219,623
664,156|**2019**
**£**
116,734
69,858
78,500
2,566
-
167,535|
|---|---|
||435,193|
This page is for the information of the Trustees only and does not form part of the statutory accounts.
Page 22