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2023-12-31-accounts

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ST MARTIN’S TRUST

ANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023 Registered charity No: 221040

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ST MARTIN’S TRUST

CONTENTS

Trustees’ Report 1
Independent Auditors’ Report 6
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flow 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

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ST MARTIN’S TRUST

TRUSTEES’ REPORT

For the year ended 31 December 2023

The Trustees present their report and financial statements for the year ended 31 December 2023.

Reference and Administrative Information

Charity Name Saint Martin’s Trust Charity Registration Number 221040 Trustees - appointed for life The Venerable H J Osborne The Revd Canon A M Townshend 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 Statutory Auditors Cubo Birmingham Office 401, 3[rd] Floor Two Chamberlain Square B3 3AX 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

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ST MARTIN’S TRUST

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

Structure, Governance and Management

The constitution and patronage

The governing instrument of the charity is the St Martin’s Rectory (Birmingham) Act 1893 as amended by the Birmingham Churches Act 1987 (“the Act”) and Statutory Instrument 1964, number 3, entitled the Churches (St Martin’s Trust, Birmingham) Order 1964, as varied or effected by the Schemes of the Charity Commissioners sealed on 26 October 1993 and 2 November 2006.

By deed dated 8 August 1837 (“the 1837 deed”), the advowson of St Martin and of three other parishes, namely St George, St Thomas and All Saints, were settled 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 Act provides that the trustees are to be the five Trustees of the 1837 deed, who 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 of the 1837 deed:

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 (jointly with St Luke’s 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 of St Martin’s) in the same five 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 Townshend 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

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ST MARTIN’S TRUST

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

Trustee induction and training

New Trustees are made aware of their responsibilities and are helped to familiarise themselves with the practical and financial operations. To assist them they are provided with a copy of the Trust’s constitution, the latest published accounts and appropriate Charity Commission publications.

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 have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s objectives and in planning for future 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 to Parochial Church Councils for individual projects in the parishes. The Trustees also provide support to the Birmingham Diocesan Board of Finance by agreeing payments to support curates in training, clergy sabbaticals and the attendance of clergy in poorer parishes at diocesan conferences.

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 £620,564 (2022: £643,028). Investment income from its share portfolio yielded £232,264 (2022: £144,479) in the year.

Spending on charitable activities increased from £581,097 to £650,588. Note 3 to the financial statements provides details of the Stipend payments made during the year together with payments made for ministerial support.

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ST MARTIN’S TRUST

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

Investment management costs comprise legal fees (in connection with the management of the charity and the property portfolio) and management charges from the charity’s property managing agents. These fees have decreased from £206,947 to £139,626 this year.

Support costs and governance costs are detailed at notes 4 and 6 to the financial statements respectively.

Investment policy

There are no restrictions on the Trustees’ power to invest. The Trustees seek to maintain a consistent investment strategy based on their view of the medium term economic situation, their desire to secure the capital value of the investment portfolio whilst maintaining the level of charity’s income in real terms and the advice of their investment managers who produce regular reports for consideration by the Trustees.

The Charity’s stock market investments are managed by EFG Harris Allday on a discretionary basis. During the year the trustees reviewed the investment management services provided to the charity and decided to appoint RBC Brewin Dolphin in place of EFG Harris Allday. The change of provider will come into effect during 2024.

Ethical Investments

The Trustees affirm their freedom of power to invest. However, they do have regard to the Church of England’s statement of ‘Ethical Investments Policy for the National Church Institutions’, as that policy evolves under the advice of the Church of England’s Ethical Investment Advisory Group, and as it may apply to the Trustees’ particular circumstances. The statement is drawn to the attention of the investment managers in exercising their investment discretion on the Trustees’ behalf, a discretion about which they consult from time to time.

Grant making policy

The sum of £277,730 (2022: £245,229) was paid out to cover payments of stipend to incumbents in support of their ministry, and the sum of £357,327 (2022: £321,116) was paid out for ministerial support.

The Act formerly restricted the Trustees’ grant making to making payments to or for the benefit of incumbents of parishes within the Diocese of Birmingham. As well as contributing towards those incumbents’ stipends the 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 that 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 £3,543,199 of which £3,440,633 is represented by investments and bank deposits, the remaining funds of £102,566 relate to other current assets and current liabilities.

As much of the Trustees’ assets are invested in property it has been their policy to build up their reserves against the time when income may be reduced.

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ST MARTIN’S TRUST

TRUSTEES’ REPORT (continued)

For the year ended 31 December 2023

Statement of Trustees’ Responsibilities

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:

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:

Auditors

Cooper Parry Group Limited have expressed their willingness to continue to act as the charity’s auditors and a resolution for their re-appointment will be made at the Annual General Meeting.

�����������

Approved by the Board of Trustees on _______ and signed on its behalf by:

The Venerable H J Osborne Trustee

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ST MARTIN’S TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ST MARTIN’S TRUST

Opinion

We have audited the financial statements of St Martin’s Trust (the “Charity”) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 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 included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

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ST MARTIN’S TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ST MARTIN’S TRUST

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 Statement of Trustees’ Responsibilities set out on page 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 for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 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 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 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:

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ST MARTIN’S TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ST MARTIN’S TRUST

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 auditor’s report.

Use of our report

This report is made solely to the Charity’s Trustees, as a body in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters 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

Cubo Birmingham Office 401, 3[rd] Floor Two Chamberlain Square B3 3AX

Date: 08 July 2024

Cooper Parry Group Limited is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

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ST MARTIN’S TRUST

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 December 2023

Note
Income and endowments from:
Investments
2
Other Income
Total income and endowments

Expenditure on:
Investment management costs
5
Charitable activities
3
Total expenditure
Net gains / (losses) on investments
8
Gain on disposal of investment
properties
(Loss) / gain on revaluation of investment
Properties
Net movement in funds
Reconciliation of funds
Fund balances at 1 January
Fund balances at 31 December		 2023
2023
2023
Endowment Unrestricted
Total
Funds
General
Funds
Funds
£
£
£
-
852,828
852,828
-
6,000
6,000
__
_
_
- 858,828
858,828
_
_
_
-
139,626
139,626
-
650,588
650,588

_
_
-
790,214
790,214

_
____
27,573
(17,912)
9,661
-
-
-
(614,000)
-
(614,000)
(586,427)
50,702
(535,725)
14,049,390
3,492,497 17,541,887
13,462,963
3,543,199 17,006,162		 2022
Total
Funds
£
787,507
685,000
_
1,472,507
_
206,947
581,097
_
788,044
_
(510,240)
78,759
921,500
1,174,482
16,367,405
17,541,887

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.

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ST MARTIN’S TRUST

BALANCE SHEET

at 31 December 2023

Fixed Assets Note
Investment properties
7
Investments
8
Current Assets
Debtors
9
Cash at bank
Cash held by investment manager
Creditors:amounts falling due within
one year
10
Net current assets
Net assets
Reserves
Unrestricted general fund
11
Endowment fund
11
Total Charity funds		 2023
£
10,582,500
4,074,875
___
14,657,375
314,867
2,090,389
155,832
2,561,088
(212,301)
2,348,787
17,006,162
3,543,199
13,462,963
17,006,162		 2022
£
11,196,500
4,151,893
___
15,348,393
298,672
2,031,637
91,388
2,421,697
(228,203)
2,193,494
17,541,887
3,492,497
14,049,390
17,541,887

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:

……………………………………. Trustee: ��������������������

……………………………………. Trustee: ����������������������

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ST MARTIN’S TRUST

STATEMENT OF CASH FLOW

For the year ended 31 December 2023

Note
2023
£
Cash flows from operating activities
Net cash provided/(used) in operating activities
15
(816,311)
___
Cash flows from investing activities
Dividends, interest and rents from investments
852,828
Proceeds from sale of investments
1,321,374
Proceeds from sale of investment property
-
Purchase of investments
(1,234,695)
Net cash provided by investing activities
939,507
Change in cash and cash equivalents in the reporting period
123,196
Cash and cash equivalents at the beginning of the period
2,123,025
Cash and cash equivalents at the end of the period
2,246,221
Analysis of cash and cash equivalents
Cash in hand
2,090,389
Cash held by investment manager
155,832
Total cash and cash equivalents
2,246,221
Analysis of changes in net debt
At 1-Jan-
23
Cashflows
£
£
Cash at bank and in hand
2,123,025
123,196		 2022
£
123
___
787,507
816,820
1,168,759
(1,114,332)
1,658,754
1,658,877
464,148
2,123,025
2,031,637
91,388
2,123,025
At 31-Dec-
23
£
2,246,221

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ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

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

St Martin’s Trust is a charity governed by the St Martin’s Rectory (Birmingham) Act 1983 as amended by the Birmingham Churches Act 1987 (“the Act”) 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 consider 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.

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.

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ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

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

Listed 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.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement bases are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 9. Cash at bank is classified as a basic financial instrument and is measured at face value. Listed investments are included in the financial statements at their market value as at the balance sheet date. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise.

Financial liabilities - accruals are financial instruments and are measured at amortised cost as detailed in note 10. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

Cash at bank

Cash at bank includes cash and short-term highly liquid investments with a short maturity of six months or less from the date of acquisition or opening of the deposit or similar account.

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’ best estimate of market value after 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.

Judgements in applying accounting policies and key sources of estimation uncertainty

The charity makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the charity’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the trustees have made the following estimates and judgements:

Impairment and valuation of investment property

The charity reviews the carrying value of the investment property for indications of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.

The charity engaged independent valuation specialists to determine market value at 31 December 2023. The valuation was made as at 31 December 2023. The valuation has been carried out in accordance with the RICS Valuation - Global Standards. The valuation practice statement 4 defines market value as the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. Further detail is disclosed at note 7.

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
Total income from investments		 2023
£
129,751
74,551
2,316
5,091
230,851
178,004
_
620,564
2023
£
129,861
102,403
_
232,264
852,828		 2022
£
117,156
70,167
2,316
76,974
195,484
180,931
_
643,028
2022
£
128,610
15,869
_
144,479
787,507

Investment income was wholly attributable to unrestricted funds in the current and previous period.

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

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
St Matthew
Bishop Latimer
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
Swanwick grant
GAP Youth Project
Total grants payable
Support costs (note 4)
Governance costs (note 6)
Total expenditure on charitable activities		 2023
£
12,718
38,378
12,445
40,874
45,954
3,280
42,290
40,916
40,875
277,730
7,500
63,792
26,299
31,502
30,765
30,590
29,764
28,000
23,033
50,560
-
20,812
5,400
-
9,310
357,327
635,037
3,976
11,555
_
650,588		 2022
£
5,162
39,232
-
35,315
-
41,380
41,380
41,380
41,380
245,229
9,000
60,352
26,299
19,390
30,503
30,749
33,820
22,000
13,068
47,200
5,720
10,215
5,400
7,400
-
321,116
566,345
1,839
12,913
_
581,097

Expenditure on charitable activities was wholly attributable to unrestricted funds in the current and previous period.

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

4 Support costs

2023 2022
£ £
Travelling and other expenses 3,976 1,839

Trustees received no remuneration and six (2022: five) Trustees were reimbursed £1,600 (2022: £549) for their expenses in the year.

5. Investment management costs

2023 2022
£ £
General legal charges 54,709 151,279
Cushman & Wakefield management fees 30,785 18,385
Investment manager fees
 17,188 18,194
Professional fees 36,944 19,089
______ _
139,626 206,947
6. Governance costs 2023 2022
£ £
Auditors’ fees 9,560 10,523
Other professional fees 1,995 2,390
_ _
11,555 12,913

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

7.
Investment properties
Value at 1 January

Revaluation in the year
Disposal in the year
Value at 31 December

The closing value of properties is represented by:
Freehold investment property
Unit B Cranmore Park
Block B- Broad Street
Block C_-_187 Broad Street
6/7 Guildhall Hill
Trentham Lakes
 2023
£
11,196,500
(614,000)
-
10,582,500
2023
£
3,350,000
2,000,000
1,472,500
-
3,760,000
10,582,500		 2022
£
11,365,000
921,500
(1,090,000)
11,196,500
2022
£
3,400,000
2,450,000
1,546,500
-
3,800,000
11,196,500

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 at 31 December 2023.

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 Royal Institution of Chartered Surveyors (‘’RICS’’) and has been undertaken by valuers, 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 “market value” in accordance with Practice Statement 4.

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

8. Investments

2023
2023
2023
Permanent
General
Endowment
Investments
Total
£
£
£
Market value at 1 January
1,645,471
2,506,422 4,151,893
Additions at cost
499,916
734,779 1,234,695
Disposal proceeds
(536,752)
(784,622) (1,321,374)
Unrealised (loss)/gain
43,610
74,379
117,989
Realised (loss)/gain
(16,037)
(92,291)
(108,328)
_
_ _
Market value at 31 December
1,636,208
2,438,667 4,074,875
Historical Cost:
Permanent Endowment
1,572,108
General Investments
2,368,643
__
3,940,751
All investments are listed securities.
9.
Debtors
2023
£
Rent
282,968
Accrued Income
31,899
_
314,867
10.
Creditors
2023
£
Accruals
105,030
Deferred income
97,465
VAT
9,806
_
212,301		 2022
Total
£
4,364,621
1,114,332
(816,820)
81,804
(592,044)
_
4,151,893
1,600,820
2,473,956
_
4,074,776
2022
£
298,672
-
_
298,672
2022
£
102,127
97,931
28,145
_
228,203

Deferred income relates to rental amounts invoiced in the current year (and included within debtors) which relate to the period 21 December 2023 to 24 March 2024 and which will be recognised in the subsequent year’s financial statements.

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for year ended 31 December 2023

11. Statement of funds

Balance at Income Expenditure Gains / Balance at
2022 (losses) 2023
£ £ £ £ £
Unrestricted Funds
General fund 3,492,497 858,828 (790,214) (17,912) 3,543,199
Endowment Funds
Endowment fund 14,049,390 - - (586,427) 13,462,963
___ ___ ___ ___ ___
Total of funds 17,541,887 858,828 (790,214) (604,339) 17,006,162

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
2021 (losses) 2022
£ £ £ £ £
Unrestricted Funds
General fund 3,130,300 1,472,507 (788,044) (322,266) 3,492,497
Endowment Funds
Endowment fund 13,237,105 - - 812,285 14,049,390
___ ___ ___ ___ ___
Total of funds 16,367,405 1,472,507 (788,044) 490,019 17,541,887

12. Analysis of funds

Analysis of funds
General Endowment
Fund Fund Total
£ £ £
Land and buildings - 10,582,500 10,582,500
Investments 2,438,667 1,636,208 4,074,875
Debtors 314,867 - 314,867
Bank balances and investment manager cash balances 1,001,966 1,244,255 2,246,221
Creditors (212,301) - (212,301)
___ __ __
3,543,199 13,462,963 17,006,162

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

NOTES TO THE FINANCIAL STATEMENTS

for year ended 31 December 2023

12. Analysis of funds (continued) – prior year

General Endowment
Fund Fund Total
£ £ £
Investment properties - 11,196,500 11,196,500
Investments 2,506,422 1,645,471 4,151,893
Debtors 298,672 - 298,672
Bank balances and investment manager cash balances 915,606 1,207,419 2,123,025
Creditors (228,203) - (228,203)
___ __ __
3,492,497 14,049,390 17,541,887

13. Taxation

As a charity, St Martin’s Trust is exempt from tax on income and gains falling within 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 £54,709 (2022: £151,279) 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.

Details of Trustees’ expenses are given at note 4 to the financial statements.

15. Reconciliation of net movement in funds to net cash flow from operating activities

2023 2022
£ £
Net movement in funds for the reporting period (535,725) 1,174,482
Losses / (gains) on investments 604,339 (490,019)
Dividends, interest and rents from investments (852,828) (787,507)
Decrease / (increase) in debtors (16,195) 94,489
Increase / (decrease) in creditors (15,902) 8,678
__ __
Net cash used in operating activities (816,311) 123

Page 20

DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

INCOME AND EXPENDITURE ACCOUNT

for year ended 31 December 2023

INCOME
Rents receivable
Net income from investments Dividends
Stock interest
Other income
EXPENSES
Contributions to payments of stipends, council tax
and national insurance:
St George
St Paul
St John & St Peter Ladywood
Bishop Latimer

St Matthew
St John, Perry Barr
St Luke
St Martin
St Germain
Birmingham Diocese – Curates in Training
Swanwick grant
Sabbatical Placements
GAP Youth Project
Ministerial support

Shakespeare Martineau LLP fees
Auditors’ fees
Cushman & Wakefield management fees
EFG Harris Allday fees
Travelling and other expenses
Professional fees
SURPLUS FOR THE YEAR		 2023
£
£
620,564
129,861
102,403
6,000
_
858,828
12,718
38,378
12,445
45,954
40,874
3,280
42,290
40,916
40,875
277,730
20,812
-
5,400
9,310
321,805
(635,057)
54,709
9,560
30,785
17,188
3,976
38,939
(155,157)
_
68,614		 2022
£
£
643,028
128,610
15,869
685,000
_
1,472,507
5,162
39,232
-

-
35,315
41,380
41,380
41,380
41,380
245,229
5,260
7,400
5,400
-
303,056
(566,345)
151,279
10,523
18,385
18,194
1,839
21,479
(221,699)
__
684,463

This page is for the information of the Trustees only and does not form part of the statutory accounts.

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DocuSign Envelope ID: 6F730E01-F78E-4F75-81B4-22CF2F0707A8

ST MARTIN’S TRUST

INCOME AND EXPENDITURE ACCOUNT

For year ended 31 December 2023

2023
£
RENTS RECEIVABLE
Block B
129,751
Block C
74,551
Guildhall
5,091
City Tavern
2,316
Trentham Lakes
230,851
Unit B, Cranmore Park
178,004
620,564		 2022
£
117,156
70,167
76,974
2,316
195,484
180,931
643,028

This page is for the information of the Trustees only and does not form part of the statutory accounts.

Page 22