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2020-12-31-accounts

Charity No. 224571

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

TRUSTEES’ REPORT & FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

CONTENTS OF THE TRUSTEES’ REPORT & FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020

Page
Reference and administrative details 1
Trustees’ Report 2
Report of the Independent Auditors 17
Charity Statement of Financial Activities 20
Consolidated (Group) Statement of Financial Activities 21
Charity Balance Sheet and Consolidated (Group) Balance sheet 22
Group Statement of Cash Flow 23
Notes to the Financial Statements 24

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

Reference and administrative details

Registered charity name The Central England Area Quaker Meeting Charities
Working charity name Central England Quakers (CEQ)
Charity registration number 224571
Area meeting office 40 Bull Street, Birmingham B4 6AF
The Trustees Anne Austin
Christine Bagnall (appointed September 2020)
Patricia Bradbury
James Green
Judith Jenner (Clerk)
Janet Hilken (released July 2020)
John Kimberley
Robert Morris
Anthony Pegler
Gillian Smith
Jill Stow
Sue Thompson
Peter Ullathorne
Fiona Waterhouse (appointed September 2020, released April
2021)
Auditors BSN Chartered Accountants
3B Swallowfield Courtyard
Wolverhampton Road Oldbury, West Midlands
B69 2JG
Nominee for Land Friends Trusts Limited
173-177 Euston Road, London
NW1 2BJ
Nominee for Investment Rathbone Greenbank Investments
10 Queens Square
Bristol BS1 4NT
Bankers CAF Bank Limited, Kings Hill,
West Malling, Kent ME19 4JQ
Lloyds TSB Bank Plc, PO Box 908,
125 Colmore Row, Birmingham B3 2QD
Solicitors Veale Wasbrough Vizards
3 Brindley Place, Birmingham B1 2JB

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

A Introduction

The trustees are pleased to present their report together with the consolidated financial statements of the charity and its subsidiary (together “the group”) for the year ended 31 December 2020. The report aims to summarise the activities, work and key events for the Area Meeting (“AM”) and its Local Meetings (“LMs”). The aim is also to explain the role of the trustees and their relationship with the Area Meeting which is a worshipping community seeking to live, as individuals and as a community, in accordance with Quaker values and testimonies which are deeply held and long-standing.

The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).

B Structure, management and governance

The Religious Society of Friends in Britain is a Christian denomination founded in the seventeenth century.

The Yearly Meeting of the Religious Society of Friends (Quakers) in Britain is the final constitutional authority for the Society. Its membership consists of all those who belong to the Area Meetings in Great Britain. Central England Area Quaker Meeting is one of 70 constituent Area Meetings established for the advancement of religious and other charitable purposes which derive from and bear witness to the principles and practices of the Religious Society of Friends. The principal activity of the Area Meeting is the holding of Meetings for Worship which are open to all who wish to attend in its Local Meetings, together with the other Branches and related projects which support the charity’s objects in an area roughly bounded by Walsall, Warwick and Stourbridge and includes the Birmingham and Coventry conurbations. There is an office and paid secretary in Bull Street Meeting House in the centre of Birmingham.

On 16 March 2009 the Charity Commission granted the Area Meeting a new scheme uniting the former registered and excepted parts of the charity, governing the charities identified in the scheme, to be known together as The Central England Area Quaker Meeting Charities, registered charity number 224571. The charity’s working name is Central England Quakers (“CEQ”). There are three constituent charities within the overall scheme (excluding those that have been removed from the register), one of which is the Area Meeting:

Central England Area Quaker Meeting of the Religious Society of Friends 224571-8
Bull Street Meeting House and Burial Ground 224571-3
West Birmingham Friends Halls 224571-6

Quaker faith is rooted in the belief of living our lives according to our spiritual experience. This is the basis of Quaker testimonies to peace, truth, simplicity, equality and sustainability, which guide Quaker behaviour, work and witness. Some of this work and witness is undertaken by the 15 Local Meetings, and some by 7 Branches – projects or committees set up for specific areas of work related to the testimonies. The financial statements incorporate the affairs of the following Local Meetings (“LMs”) and Branches:

Local Meetings Branches Barnt Green and Redditch West Midlands Quaker Peace Education Project (Peacemakers) Bournville Quaker Christmas Parcels Committee Bull Street Community Justice Group Cotteridge Junior Young Friends Coventry Northfield Development Committee Edgbaston Peace Committee Hall Green Peace Hub Hartshill Kings Heath Selly Oak Solihull Stourbridge Sutton Coldfield Walsall Warwick

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The charity’s Governing Document defines the way it is organised and managed.

A key part of the way that Quakers conduct their affairs is the “Quaker Business Method” and applies to all Quaker business meetings and has been followed almost unchanged for over 350 years. The meetings begin in silence as we wait for the promptings of the Spirit. The clerk is responsible for the agenda and the conduct of the meeting, and is the servant of the meeting, taking no part in the discussion, but listening to contributions and discerning the sense of the meeting. Quakers do not vote, they discern what is the right decision for the meeting. The decision/agreement is recorded by means of a Minute and Minutes are written and agreed in session after each item. This is quite different to the conduct of secular business meetings, with the chairperson in a leadership role.

Local Meetings and Branches are branches of the charity, under the care of CEQ trustees. They have their own committees, treasurers and bank accounts, and the relationship between the LMs/Branches and trustees is set out in a Memorandum of Understanding (“MoU”) which all LMs and Branches are required to sign. The MoU gives delegated authority to the LMs/Branches, subject to agreed policies and procedures. Each LM, Branch and committee within the Area Meeting has a “Link Trustee” to whom they can turn for advice and guidance.

Trustees are appointed by Area Meeting, on the basis of nominations proposed by the CEQ Nominations Committee. (This process is a key part of the Quaker Business Method, and the CEQ Nominations Committee is responsible for considering all vacancies for voluntary roles, and for recommending “names” to area meeting. These “names” are then appointed or declined at the next area business meeting). In line with Quaker practice, trustees are appointed for a three-year term, which can be extended for a second “triennium” by mutual agreement between the trustee and Area Meeting. Only in exceptional circumstances do trustees serve a third term.

New trustees receive a detailed induction “briefing” and are given the opportunity to attend a weekend training course for trustees at the Woodbrooke Quaker Study Centre.

In the Quaker tradition, decisions about policies, charitable activities and priorities are taken by the members of the Area Meeting at regular business meetings, and not by the charity’s trustees who provide advice and guidance and take responsibility for the statutory and legal duties of the charity. Area business meetings are open to all members of the Area Meeting, and Local Meetings appoint representatives to ensure effective representation. All Local Meetings receive minutes of the business meetings and can comment freely on the work of CEQ.

In 2020 Area Meeting met 8 times for business. The first two meetings (in January and March) were held in Meeting Houses, but the other 6 were held by video-conferencing, due to the COVID-19 restrictions. Reports were received from trustees and from some Area Meeting Branches and committees: Peace Hub, Quaker Christmas Parcels Committee, Outreach Committee and the Low Carbon Commitment Forum which was renamed West Midlands Quaker Climate Emergency Action. A report was given by a “sister charity”, the Charities of Susanna Cole and Others. Reports were also received from representatives to committees and groups that are part of Britain Yearly Meeting. The number of reports received in 2020 was far fewer than usual due to the restrictions on activities and events imposed by the pandemic.

Finally, Priory Rooms (Bull Street) Limited, a professional Quaker owned and managed conference centre located at Bull Steet Friends Meeting House, is a wholly owned subsidiary of CEQ. Directors are appointed by CEQ Area Meeting; there are at least two CEQ trustee Directors and at least four non-trustee Directors. The strategic vision for Priory Rooms is described in a “Purpose and Principles” document, and the relationship between the company and CEQ trustees is set out in a detailed Management Agreement. Both of these documents were reviewed and revised in 2019.

Membership

The members of the Area Meeting are those persons whose names are for the time being recorded in the official register maintained in accordance with Quaker Faith and Practice (“QFP”) of Britain Yearly Meeting. At 31 December 2020 membership of the Area Meeting comprised 456 members (3 more than 2019). There were 235 recorded adult attenders (1 more than 2019) and 46 recorded children (same as 2019).

C Purposes, activities, and performance

Worship is our response to an awareness of God. We can worship alone, but when we join with others in expectant waiting we may discover a deeper sense of God’s presence. We seek a gathered stillness in our Meetings for Worship so that all may feel the power of God’s love drawing us together and leading us. (Advices & Queries 8)

The Meeting for Worship is our core purpose and the centre from which all our activities flow. On Sundays, Friends (a name commonly used by Quakers) meet to worship regularly in one of our 13 Meeting Houses or in a rented

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room. They gather in silence and wait on the spirit. There is the quiet presence of an elder but no leader, each person is responsible for the right holding of the worship. The community is empowered and led by the spirit. When there is a sense of unity those present experience a gathered meeting. For newcomers experiencing this for the first time there is an overwhelming feeling of being surrounded by love. It is impossible to describe, and this mystery is at the heart of our worship. Meeting together has always been an important element of belonging to the Society of Friends. In 2020 places of worship were closed or had access limited by social distancing rules; the country was dominated by personal and government reactions to the Coronavirus pandemic.

Friends have worshipped together, often in a Meeting House, for centuries in the case of Warwick and Stourbridge. There is nothing sacred or holy about the building, but it is for many a symbol of our community.

Some Friends were quick to respond to the sudden changes because they were already using Zoom for meetings and events, while others found the transition to a virtual meeting quite challenging. Some Friends with no access to Wi-Fi, a computer, or smart phone found it impossible, others were affected psychologically.

Many Local Meetings quickly established regular Meetings for Worship on Zoom, bringing the community together on a computer screen with each person in a little square box. But it did mean they were able to see each other’s faces and feel they were in their presence for an hour of worship. Friends were able to join a virtual Meeting for Worship from around the world. Those who had moved away could join the community in worship, and it enabled meetings to be more inclusive of frailer and less mobile members. There were some advantages.

Those unable to meet virtually sat quietly in their own homes at the usual time, knowing others were gathered in worship. In summer when regulations were eased, many Friends continued to self-isolate, some Meetings experimented with blended worship (in person and on Zoom). During the summer, some Coventry Friends met outdoors in a local park, in the Meeting House garden or walking in an open space. The variety was enriching but led to a less cohesive meeting. Children’s Meeting at Cotteridge met in the local park, and in September there was an all-age Meeting for Worship in the Woodbrooke garden. Worshipping outdoors was a lovely experience during the pandemic, with no computer screens, just social distancing.

A small group continued to meet throughout the year managing the social distancing and Covid restrictions at one Meeting House unable to use Zoom. Quaker worship has one advantage in a pandemic, no one needs to speak or sing hymns, and everyone sits quietly.

Some Local Meetings struggled to continue, and Edgbaston asked to be laid down in the summer. After a period of consultation Area Meeting agreed it could be laid down and Edgbaston Friends joined other Meetings for Worship. By the end of the year two more Local Meetings indicated that they were struggling to continue, and these Friends are being supported by trustees in 2021, awaiting discernment on the right way to proceed.

Caring for each other

Each Local Meeting provides pastoral care and support, and Meetings developed their own systems for doing this during the pandemic, which was a priority for the pastoral care teams. Many Meetings arranged weekday events for Friends to meet up on Zoom and included meeting regularly for coffee or lunch, quiz sessions, study groups, book clubs, singing together and bible study.

These Zoom meetings were easy for many to manage, however not all Friends were able to join in. The pastoral care teams were aware that some Friends would be feeling cut off from meeting and had to ensure that they kept in touch and shared this within the meeting. Warwick had a Wheel of Friendship so that each Friend was in contact with at least two others, there was also a regular newsletter. Some made doorstep visits, delivering provisions to self-isolating Friends. The telephone was used more frequently to keep in touch and Selly Oak, using another digital platform, set up a Whatsapp group for communication and keeping in touch with each other. Many Meetings used Zoom breakout rooms after Meeting for Worship, to chat and catch up, which proved very beneficial.

There were unplanned consequences to the changes. Some members of pastoral care teams and elders were unable to manage the transition to virtual meetings and asked to be released from service.

Some Meetings hold regular Meetings for Worship for support and healing, and Sutton Coldfield was able to continue meeting virtually during lockdown and then in person when restrictions eased.

The life of the Meeting - inward looking

The community worships together and takes on its own life. There are many opportunities for small interest groups to meet, explore topics and develop friendships. These are the things that bind individuals into a community of Friends. This strengthens the Meeting, making it attractive to enquirers as well as supporting each other. In preCovid times it was easy to organise study groups, bible study, spiritual journey groups, fund raising projects, or a

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weekend away, but when activities and meeting up were not allowed many managed to meet virtually. 2020 was the year of Black Lives Matter and Friends were involved in a variety of ways including sessions learning about white privilege and racial justice. Nationally, Friends were asked to look more carefully at these issues. Bournville Local Meeting organised a series of sessions on the booklet Race and Privilege in Europe (QCEA) inviting Friends from neighbouring Meetings to join them.

Friends at Warwick discussed Tom Shakespeare’s 2020 Swarthmore lecture “ A Friendly offering of Hope ”, and Solihull Friends studied Chapter 2 of Quaker Faith & Practice approaches to God and Worship. Some Meetings joined with other churches to explore aspects of our faith.

The regular business of the Meeting continued and Friends found that these virtual meetings for business were well attended. Coventry continued their work on making the Meeting House more accessible and the design group, in consultation with Friends, made headway on the plans to install a lift to the first-floor meeting room.

Our community includes children and young people and during lockdown some Local Meetings held virtual sessions. Cotteridge children’s committee organised weekly Zoom meetings for their children and parents. Both adults and children discovered lots of new presentation skills, and the children shared the planning and delivery of the sessions which included quizzes, making things, origami, telling stories, writing poems and even a ‘bake off’, by special request. Relief came when restrictions were eased, and the group could meet in the local park and hold sessions outdoors. These were more popular than virtual meetings.

Stourbridge “Rainbows” children’s group met monthly in a breakout room during Meeting for Worship, and included talking about nature, refugees, and even making pancakes. Selly Oak Friends started a toddler group in September before Meeting for Worship and this proved popular. The older children met virtually and also met outside, litter picking and other activities, when restrictions were lifted. The Area Meeting youth group, which attracts young people from four Local Meetings, continued on Zoom and face to face when allowed.

Friends continued their concern for the environment and during lockdown noted that not needing to travel to Meeting for Worship and committee meetings was a real benefit. Due to restrictions in overseas travel fewer aeroplanes were flying and more people were cycling, whilst restricted shopping and closed Meeting Houses reduced energy use.

The restrictions brought with them an increased use of plastic and throw away items. So, many Friends produced reusable face masks to give to voluntary groups working at the food bank and community garden as well as for the Meeting, instead of the disposable ones. At Hall Green they set an environmentally friendly cleaning policy with no plastic PPE or throw away wipes. Warwick Meeting completed their garden project and are planting native species which attract wildlife.

World Earth Day was celebrated by many Friends and some attended a Webinar. The Peace Hub took climate emergency as one of its themes A Burning Issue which built on the Climate Emergency declarations in 2019.

Witness of the Meeting - outward looking

We believe that our actions speak louder than words. Over the years Local Meetings have developed relationships with a particular local or international project. Friends provide support in many ways which arise from our testimonies to peace, truth, justice, integrity, sustainability and simplicity. During the pandemic Friends continued to raise funds and give practical support. Special collections at Stourbridge Meeting doubled, and the Meeting also supports Palestinian families living in Seir and a project teaching people to make re-usable sanitary pads in Uganda.

During the pandemic people lost their jobs, children were not at school and there was an even greater demand on food banks. Friends joined with other churches to collect and distribute food to those in need. Much of the work done by volunteers.

Asylum seekers have been supported, either directly by a Meeting, or through individual Friends volunteering for the Befriender programme in Birmingham. The Peace Hub took the theme Be the Friendly Face of Brum contrasting the positive impacts that people arriving in our community have brought with the ‘hostile environment’ they face.

Hall Green Local Meeting joined with Churches Together Star window display at Christmas. Friends prepared a Quaker Star window that focused on Quaker peace work in the context of supporting refuges.

Jai Jagat 2020 UK was supported by the Area Meeting Peace Committee and Local Meetings during the year and some events were able to happen despite the restrictions. An Indian meal was shared (on Zoom) to raise funds, raising awareness of the Jai Jagat 2020 concerns of the Climate Emergency, on food production, sustainability and our relationship to the land. The Peace Hub and other Friends took part in a protest walk to Tyseley Incinerator with Footsteps (Faiths for a Low Carbon Future) from Birmingham Council of Faith.

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Despite lockdown restrictions Quakers were able to take part in other protests including Black Lives Matter, Extinction Rebellion, and activities to mark Anti-slavery Day in October. Modern slavery was one of the themes the Peace Hub covered in partnership with the Medaille Trust, not just talking, but taking action.

The long-established Christmas parcels for families of prisoners project had to be done differently in 2020. Social distancing rules meant that packing over 1,000 parcels could not be done, however, an alternative food voucher scheme was put into place and Probation Officers used the vouchers to buy food which was distributed to families known to the Probation Service. With ingenuity a way was found.

Peacemakers staff were challenged when working in schools came to an abrupt halt with lockdown. They found ways of creating relevant and safe ways to deliver the training which will allow for a creative and flexible way to deliver their programmes into the future, tailoring games and activities to fit the constraints, and keeping alive the very real need to build community and social and emotional learning in these difficult times.

The pandemic has allowed Quakers to adapt the ways we worship together, care for each other, and continue our work in the local community with our partner organisations. We found we were working at a slower pace allowing the spirit to move amongst us.

D Performance and monitoring

Trustees are responsible for monitoring the performance of the charity and managing its many administrative activities. In January 2020 there were 12 serving trustees. During the year two new trustees were appointed and one released, so there were 13 trustees serving in December. Trustees met four times in 2020, in March, June, September and November and two additional meetings were held in response to the COVID-19 pandemic, in April and October.

Oversight of and support for Local Meetings and Branches is provided by “Link Trustees”, and reports from Link Trustees are received at each meeting of trustees.

Trustees report regularly to the Area Meeting business meetings, to keep members of the Area Meeting informed and to seek discernment of, and approval to, key policy decisions. In 2020 trustees reported to/consulted Area Meeting on six occasions: -

Much of the trustee work is undertaken by five trustee Service Committees: -

  1. Finance

  2. Property

  3. Employment

  4. Records Advisory

  5. Governance & Compliance

  6. 6 -

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The members of the committees 1-4 are appointed by Area Meeting, and need not by trustees, though the terms of reference for each committee specify a minimum number of trustee members. Members of the Governance & Compliance Committee are all trustees and appointed by trustees.

1 Finance

The Trustees Finance Committee consists of a “central treasurer team” each member of which has a designated role, together with a clerk and one member without an assigned role.

The team comprises

The clerk to Finance Committee fulfils the role of Area Meeting Treasurer (an appointment required by the CEQ Governing Document).

Accounts and budgets

Management Accounts (receipts and payments) for 6 centrally-managed funds are issued quarterly and monitored by Finance Committee. For the first three quarters actual figures are compared with the budget for the year, but at the end of the third quarter a forecast is published for the fourth quarter (and full year), and over the final quarter actuals are compared with forecast.

For the 2019 CEQ Report and Accounts, all Local Meetings and Branches submitted their examined accounts by the 31 March 2020 deadline (for the fifth year running). The external audit of the accounts was undertaken, with a satisfactory outcome. The 2019 CEQ Report and Accounts were approved by trustees (and submitted to the Charity Commission) in September 2020.

In November 2020 the Annual Briefing for treasurers and examiners was held by video-conferencing, and all Local Meetings and Branches were represented. This annual briefing advises local treasurers of any changes to policies or procedures, and any changes to reporting requirements for the forthcoming year-end. A new Handbook for CEQ treasurers, designed to improve the support and training given to new treasurers, was launched at this meeting.

The impact of the Covid-19 pandemic

The pandemic impacted CEQ finances in three ways: -

Rent “holidays” offered to tenants of investment properties £14,688
Additional grant support to the “Peacemakers” Branch £33,079 (£20k of which from Black Country Fund)
Covid signage and other additional expenditure
£4,375
Offset by Birmingham City Council grant
(£10,000)
Net additional expenditure
£42,142

b) Local Meeting Funds

Due to the closure of Meeting Houses during lockdown, the letting of rooms to local groups was seriously affected during 2020 (and has continued into the first quarter of 2021). The loss of room hire income was offset to a minor extent by savings in Meeting House overheads (e.g. utilities, cleaning, wages). The net impact across the Area Meeting has been estimated at £111,000. This loss will be funded from the Local Meetings’ own reserves.

The Priory Rooms Conference Centre was forced to close for much of the year, with a significant impact on sales revenue. The trading loss for 2020 was just over £100,000. This will have a major impact on the CEQ charity’s finances in 2021, as the annual gift to the charity from Priory Rooms in 2021 will be nil (compared with £120,000 in 2020).

The outlook for 2021 is considered in section E (Future Plans)

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Investment Policy and performance

CEQ has three categories of investments (excluding investment properties, described in Note 12 to the Accounts):

Reserves policy and performance

The reserves policy for the Area Meeting’s central funds, was first approved by trustees in April 2009. It is regularly reviewed and was further revised in 2020. The aim of the policy is twofold:

The policy sets limits for funds held as investments and cash held in bank accounts, taking due account of cash flow fluctuations, income generation from capital, and protection from potential financial risks. It is used as the basis of all budgeting and spending reviews and makes an important contribution to the good governance of the charity.

Most Local Meetings and Branches carry some reserves of their own to cover day-to-day needs, and for property maintenance, also to protect the remuneration of employees where appropriate. In November 2015 guidelines were issued by Finance Committee to Local Meetings and Branches to enable them to develop their own policies, and all Local Meetings and Branches are encouraged to develop individual reserves policies, using these guidelines.

Specific reserves policies for each central fund (see further details in Notes 17 and 18 for the performance of restricted and designated funds) are as follows:

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Table: Reserves policy for Trustee and General Funds

Fund/Criteria Policy Target Values Actual Values
31 Dec 2020
General Fund
bank account/
General Fund
commitments		 Budget should be balanced and capital
should not be used for operational
expenditure		 £30,000 £34,918
General Fund
Reserve/ Unforeseen
expenditure		 Maintain a General Fund Reserve
(established in 2013 from the proceeds of
Trustee Reserve Funds)		 £25,000 £24,788
General Fund
Investments/ to
cover exceptional
unforeseen
expenditure and
provide adequate
investment income		 Investments to be equivalent to between 6 –
12 months general fund expenditure		 £100,000 £112,967
General Fund/
contingency to cover
a major financial
disaster affecting a
Local Meeting or
Branch		 Contingency investment fund in addition to
unforeseen expenditure above		 £100,000 £100,000
Trustee Fund bank
account/		 Protection for general cash flow, salary
payments and contingency for unforeseen
repairs		 Minimum
£60,000 in total		 £58,128

Other Financial activities and issues

The Contribution Schedule continues to be supported by individual Friends, and the total funds distributed to beneficiaries in 2020 was £56,196. This represents a decrease of 4% on the previous year.

One of trustees’ tasks is to provide Minutes of Authority for Local Meetings or Branches that are opening bank accounts or investment accounts and several such Minutes were produced during the year. Trustees also assist Local Meetings with completing applications to open new bank accounts or purchase investments.

Performance of the trading subsidiary (Priory Rooms)

After a record year in 2019, with £120,000 gifted to the Area Meeting trustees, Priory Rooms started 2020 on an optimistic note, with sales and profit levels remaining high. However, the imposition of Government Covid-19 restrictions in March saw a complete cessation of the activity. Apart from staff kept active to ensure the continuity of the business, operations staff were furloughed on full pay for the first lockdown. Limited opening over the summer period meant that costs were incurred in preparation and training in Covid-safe procedures, but the second set of restrictions coming into force locally in September forced a second closure which continued into 2021. Again, most staff were furloughed. Despite the government financial support for salaries, general costs and rates, the ongoing unavoidable costs meant that the final result was a loss after tax of some £107,000. The closure has

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continued until May (although some limited activities have been resumed) and the outlook for bookings in the latter part of the year remains uncertain.

Grants policy

The Area Meeting is not a grant-making charity and the items referred to as grants mostly consist of the gifts (from central funds and Local Meetings) to the charity’s parent body, Britain Yearly Meeting, contributions to other Quaker work, donations to non-Quaker charities (mainly by Local Meetings acting under concern) and subscriptions to ecumenical bodies of which CEQ is a member.

In 2020 the following donations were made from charitable funds to external beneficiaries: -

Overseas beneficiaries
Non-CEQ Quaker charities

Britain Yearly Meeting

Non-Quaker charities

Non-charities

TOTAL
 £
Nil
205,797 *
43,469
25,370
450
275,086

The funds used for these purposes derive from members’ donations and investment income and not from the general public. All of the donations (as listed above) were approved at a formal business meeting, and recorded by Minute.

Going concern

The trustees are of the view that the charity is a going concern, the evidence for which is as follows:

All of the key funds held by the charity are overall above target levels, as defined in the Reserves Policy. Principal sources of income are the rents from investment properties, donations from members and the hire of rooms. The rent income is underpinned by the length and stability of the leases, and donations from members have been stable for many years, with no known risk of any significant reduction.

The impact of the Covid-19 pandemic (see above) will have a significant impact on the charity’s finances (notably room hire income) in 2021, and possibly 2022, but there are sufficient reserves to support the charity through this period.

The risks faced by the charity are well understood, with extensive mitigation measures in place. Specific financial risks are incorporated in the reserves policy.

With the exception of one of its Branches, the charity is not dependent on external funding or fundraising for its income, and the relatively small scale of the activities limits the risks associated with this Branch.

Property (repair and maintenance) risks are mitigated by the regular (quinquennial) building surveys undertaken, and by the comprehensive insurance cover that is in place. Major unforeseen expenditure on property is protected by the substantial (c. £500,000) central Building Fund held in reserve.

2 Property

A major task for Property Committee in 2020 was managing the closing and subsequent re-opening of Meeting Houses due to Covid-19 restrictions. A “C19 project team” was established in June 2020, under the auspices of Property Committee, but with representation from Employment Committee and Priory Rooms, to manage the process of re-opening Meeting Houses (and the subsequent second closure prompted by the second lockdown).

The project team’s remit included: -

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Link Trustees were given the responsibility of checking that their linked Meeting Houses were re-opened in a Covid19 compliant manner.

Part of Property Committee’s work is allocated to three “working groups” responsible for property management and compliance (“PMC”), investment properties and Bull Street Premises.

PMC’s work covers: -

The investment properties group is responsible for negotiating, managing and renewing leases for the various properties (see Note 12 for details), for arranging repairs for those properties for which CEQ is responsible (as landlord), and to arrange valuations of the properties every 5 years (undertaken/completed in December 2019).

The Bull Street properties (40 Bull Street – Meeting House and Priory Rooms Conference Centre, and 41 Bull Street – Peace Hub) are managed by the “Bull Street Premises Group” (BSPG) which draws its membership from CEQ trustees, Bull Street Local Meeting, Peace Hub and Priory Rooms directors & staff. Repairs, maintenance and improvements are funded from the Bull Street Fund (see Note 18). Expenditure in 2020 was £155,376, £126,371 of which was spent on the replacement of the heating and hot water system at the Meeting House and Priory Room Conference Centre. A decision has been made to capitalise £110,104 of this expenditure (see Note 11).

In 2020 the leasehold interest in the 1 Colmore Square property was sold by Legal & General UK Property Fund to Oval Properties 1201 Limited. The associated legal costs incurred by CEQ were met by the buyer.

Meeting House projects, and “Property Link Friends”

Each Meeting House has a member of the Trustees Property Committee assigned to liaise with the Local Meeting as “Property Link Friend” (PLF). PLFs report to the Committee on their linked properties at each committee meeting.

A number of Meeting House projects were undertaken in 2020, including: -

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Plans to improve the energy efficiency of Selly Oak Meeting House in 2020 were deferred due to the pandemic.

Total value of Building Fund grants in 2020 was £32,742, and there were two new loans totalling £13,000. Repayments of existing loans totalled £7,100.

Future of Edgbaston Meeting House : in July 2020 Area Meeting received a letter from the four role-holders at Edgbaston Local Meeting advising that the Meeting was no longer sustainable, and asking Area Meeting for guidance. Trustees and the Elders & Overseers Support Group were asked to liaise with each other, and with members of the Meeting, to explore possible ways forward. This led to the establishment of a joint working group, and the group reported back to Area Meeting in October. Area Meeting agreed that the Local Meeting should be “laid down” from 1 January 2021, and that trustees should take over the management of the property and assets of the Meeting. The working group was encouraged to develop the concept of an Edgbaston Quaker and Community Centre based at the Meeting House, and this project will become a key task for trustees in 2021.

Transfer of Kings Heath Meeting House : This Meeting House was owned by a separate charity, South Birmingham Friends Institute Trust (SBFIT), and was the only Meeting House occupied by a CEQ Local Meeting which CEQ did not own. Discussions between the trustees of CEQ and SBFIT commenced in 2019 with the aim of transferring the ownership from SBFIT to CEQ. Agreement in principle was reached before the end of 2019, and the transfer was formally approved by Area Meeting in March 2020. The transfer was completed in September 2020. SBFIT contributed of £40,000 to the CEQ Building Fund towards the upkeep of the building for a period of 10 years.

3 Employment

The employment committee held seven meetings during the year and continued to have oversight of the Area Meeting employees. During the lockdowns and restrictions imposed by the government the welfare of the staff was a primary concern. However, the committee also had to keep up to date with employment regulations and many policies were revised in the light of these changes. All policies are regularly reviewed and updated as required. In 2020 these included: Grievance Procedure; Recruitment, Selection and Appointment of Staff; Equalities Policy; Guidance on expense claims and the Expense Claim Form; Sickness Absence Policy and absence monitoring form. The revised polices were sent to both staff and line managers and posted on the CEQ website making them accessible. In 2020 a 24-hour telephone counselling service was set up for employees and their families, which was used and will continue to be available.

To ensure that staff contracts were fully compliant with the latest legislation, the HR firm Roots HR was contracted to help with this lengthy process. A model contract was produced and then each employee was consulted. It was finally completed in 2021.

The pandemic brought additional challenges. Introducing the new government scheme to pay 80% wages to staff unable to work during the lockdown was one of them. The Finance Administrator, responsible for the payroll, was able to set up the scheme online. The Employment Committee needed to prepare new contracts for staff wanting to be furloughed and contact each of them. Five members of the Peacemakers team and some Local Meeting staff joined the scheme. Changes in the scheme over the months were responded to.

Employees on furlough leave were paid their contractual salary to maintain goodwill, and when the lock-down was lifted they were ready to return to work. The committee had to pay particular attention to the welfare of staff during the pandemic, and some had to self-isolate. Guidance on risk assessments in the work place was given. The Peacemakers’ director, the AM secretary, and the Peace Hub coordinator were able to work from home. Before they returned to their place of work a risk assessment had to be in place.

Early in the year the committee planned an Inclusion and Diversity training session for staff, as well as a session for line managers. Unfortunately, these events could not go ahead because of the lockdown.

4 Records Advisory

The year of 2020 has certainly been a year of stops and starts. The year started well with a meeting in January and a further meeting arranged for April. Work continued on the next accession which was arranged for 23 March. Unfortunately, Covid-19 lockdown occurred on the same day but in advance of this possibility, the transfer had been cancelled as was another arranged for January 2021. The lockdown meant that the committee could no longer

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

meet in person and no further work was undertaken on processing the records. They did, however, keep in touch with each other by email and had their first zoom meeting in October. Updates were sent to trustees. A number of Local Meeting records were received which were placed in the strong room. Enquiries regarding our records continued to be received and some of these could be answered. Other people were directed to the Central England Quakers archive website via the Library of Birmingham. Some enquiries will be followed up by the committee once the Library archives section is open. Even though the committee were not able to meet in person and carry on the processing work, it continued to have oversight of the records and deal with enquiries.

5 Governance and Compliance

Five trustees are members of this committee which met four times during the year. In 2020 the committee considered the following matters.

Safeguarding: The co-ordinators were invited to report to this committee in February and were able to share some of the feedback from the 2019 questionnaire the Area Meeting was asked to complete. It highlighted some of the weak points in our present system, including safer recruitment for some voluntary roles, regular training for the coordinators and safe keeping of safeguarding records. BYM has produced a new safeguarding policy and the coordinators have been looking through this and will advise trustees on its implementation. It will need to come to our Area Meeting for approval and there will be training for role holders and Local Meetings. The co-ordinators held two training sessions on Zoom for volunteers in Local Meetings to update them on current guidelines. The CEQ Safeguarding Link Trustee keeps in regular contact with the two safeguarding co-ordinators about issues of concern and reports regularly to trustees.

Governing Document : As a consequence of the lockdown, the Charity Commission advised charities to check the section of their Governing Document referring to the right holding of business meetings. Trustees discovered that changes should be made to the to take account of the use of virtual meetings for our routine business meetings. This was completed and all business meetings in the area meeting can be held virtually.

Memorandum of Understanding : This is the agreement between trustees and the Local Meetings and Branches to ensure that all legal requirements are being met financially, with the upkeep of the property, in employment practice, keeping and storing records and personal data, health & safety as well as safeguarding children and vulnerable adults. This is the assurance that the charity is working well and is compliant. The reports from all Local Meetings and Branches were received early in the year and checked by the service committees. Any noncompliance issues were followed up. The MoU is sent to Local Meetings and Branches every two years, and at the end of the year the committee started work on the 2021 version.

General Data Protection Regulation : Trustees oversee GDPR in the Area Meeting. The policies were put in place in 2018 and will be reviewed in 2021.

Management of risk : The Risk Register is kept up to date by each of the service committees and overseen by the Governance and Compliance committee. In 2020 the committee produced a Risk Management Policy which clarified the procedures. This was adopted by trustees. During the year the following key risks were identified.

a) Loss of income as a result of a pandemic

The trustees, Local Meetings and Branches each have their own reserves policies and these were tested this year because of the lockdown and restrictions on meeting. Government support was available and was applied for, the insurance companies lost a legal argument and claims for loss of income could be made. Trustees called two additional meetings in April and October in response to the lock down and the uncertainty of how the finances would be affected. At the routine meetings the effect on the Area Meeting, Local Meetings and Branches was monitored. However, the biggest financial loss was with Priory Rooms and this will affect the charity in 2021.

b) Decrease in active membership

The charity is heavily dependent on members to take on key roles and there are fewer Friends able to serve on the many trustees’ committees. The Local Meetings have the same problem and finding treasurers and clerks is increasingly difficult. During 2020 three smaller Local Meetings were unable to continue as they were. In 2019 trustees decided to recruit an operations manager and in 2020, following an unsuccessful recruitment process, decided to recruit a principal officer. This will reduce the risks associated with overdependence on key volunteers. As a first step trustees have a service agreement with Priory Rooms directors to provide staff to manage the duties of the principal officer for an initial 6-month period.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

c) Reputational damage

The use of social media to promote a particular campaign have become more widely used, leading to a loss of control, and it is easy for Friends to set up Facebook pages which present distorted information. Also Friends can use the local press to publish articles presenting their own opinion in the name of Quakers. To reduce this risk the trustees have the support of the BYM media office. There was no policy for staff and volunteers using social media or the press. This needed to be produced.

d) IT systems

The use of home PCs, laptops, smart phones and tablets by volunteers is a recognised risk in the organisation, and with the need for staff working from home during the lockdown this risk increased. As well as drafting a new IT policy for staff a cloud storage system for the charity’s shared documents was set up. These will be monitored. Local role holders continue to be encouraged to use generic email accounts for Quaker business.

e) Compliance with legislation and regulation

Trustees maintain policies covering all aspects of property, finance, employment as well as specific legislation for Covid-19 security, safeguarding children and vulnerable adults, GDPR, health and safety these are agreed by the Area Meeting and posted on the CEQ website. Compliance with policies by Local Meetings and Branches is reviewed every two years, via the Memorandum of Understanding. The Link Trustee and Property Link Friend liaise with them regularly to ensure they understand their responsibility.

f) Maintenance and safety of CEQ properties

Property management is overseen by Trustees Property Committee, with committee members assigned to individual Local Meetings as “Property Link Friends”. In 2020 the detailed quinquennial survey of all properties was undertaken. This highlights where work on the property needs to be carried out and is followed up by the Local Meetings.

Risk Assessments (including the assessment of Fire Risks) are prepared by Local Meetings and Branches and reviewed annually. Financial support is available from the central Building Fund for major improvements or unforeseen major repairs to Meeting Houses. Guidance is given to Local Meetings by Property Committee on fire and emergency exit safety.

g) Misappropriation or inaccurate recording of funds

Internal fraud is an ever-present risk, but there are robust financial procedures in place. All Local Meeting and Branch annual accounts are examined prior to consolidation. Examiners are asked to complete an examination checklist, with a section enabling them to record any matters of concern. Management of central funds is overseen by Trustees Finance Committee. All online payments are subject to dual authorisation, and limits of authority for cheques are defined and controlled. Opening of (or changes to) bank accounts and applications for investments are subject to validation by two Trustees. The charity provides Local Meetings with guidelines on handling cash collections, and local procedures are checked as part of the annual examination of accounts.

h) Cyber Fraud

Most Local Meetings and Branches, as well as the trustees, use Internet banking, and there is always the risk of scams. To mitigate this risk there is regular training for treasurers which includes awareness raising. Dual authorisation for online payments is mandatory, and the person setting up the payment is required to send a copy of the invoice to the second authoriser, to verify that the payment is genuine.

E Future Plans

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

F Public benefit statement

The trustees consider they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

The charity makes available and provides the following to further its purposes for the public benefit:

Trustees consider that the following in particular benefit from the charity’s activities:

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

Trustees’ responsibilities in relation to the financial statements

The charity 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 charity trustees to prepare financial statements for each 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, including the income and expenditure, of the charitable group 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the Governing Document. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of information to the auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

The trustees’ annual report was approved on 15 September 2021 and signed on behalf of the trustees by;

Judith Jenner ) ) trustees Robert Morris )

The financial statements were submitted to the Charity Commission on 16 September 2021 and to the BYM Recording Clerk’s Office on 16 September 2021.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

Opinion

We have audited the financial statements of The Central England Area Quaker Meeting Charities and group for the year ended 31 December 2020 which comprise of the charity and group statement of financial activities, the charity and group statement of financial position, 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 FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed. 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

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:

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.

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 Trustees' report.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES (continued)

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:

Responsibilities of Trustees

As explained more fully in the Trustees' responsibilities statement, 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 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 applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Philippa Hawkes CA (Senior Statutory Auditor)

For and on behalf of BSN Associates Limited Chartered Accountants & statutory auditor 3B Swallowfield Courtyard Wolverhampton Road Oldbury West Midlands B69 2JG

15 September 2021

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Restricted Total Total
Funds Funds 2020 2019
___ ___ _____ _____
£ £ £ £
Income
Donations and legacies 155,823 135,125 290,948 283,478
Charitable activities 59,869 20,082 79,951 238,384
Other trading activities - - - 126,000
Investment Income 261,204 11,286 272,490 304,960
Other Income 57,490 2,327 59,817 15,583
_ _ _ _
Total income 534,385 168,820 703,205 968,405
_ _ _ _
Expenditure
Cost of raising funds (5,855) (3,428) (9,283) (23,516)
Charitable activities (802,687) (250,116) (1,052,803) (960,096)
Other Expenses
_ _ _ _
Total expenditure (808,542) (253,544) (1,062,086) (983,613)
_ _ _ _
Net gains/(losses) on
investments 34,849 54,429 89,278 387,357
______ ____ ______ ______
Net income/(expenditure)
before transfers (239,308) (30,295) (269,603) 372,149
Transfers between funds 19,546 (19,546) - -
_ _ _ _
Net movement in funds (219,762) (49,842) (269,604) 372,149
Total funds brought forward 7,976,957 1,072,488 9,049,445 8,677,296
__ __ __ __
Total funds carried forward 7,757,195 1,022,646 8,779,841 9,049,445
__ __ __ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

CONSOLIDATED (GROUP) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Restricted Total Total
Funds Funds 2020 2019
___ ___ _____ _____
Note £ £ £ £
Income
Donations and legacies 155,823 135,125 290,948 283,478
Charitable activities 59,869 20,082 79,951 238,384
Other trading activities 188,942 - 188,942 715,657
Investment Income 263,179 11,286 274,465 310,816
Other Income 187,029 2,327 189,356 15,583
_ _ __ __
Total income 4 854,841 168,820 1,023,661 1,563,918
_ _ __ __
Expenditure
Cost of raising funds 5 (408,977) (3,428) (412,405) (587,646)
Charitable activities 6 (829,165) (250,116) (1,079,281) (983,814)
_ _ __ __
Total expenditure (1,238,142) (253,544) (1,491,686) (1,571,460)
_ _ __ __
Net gains/(losses) on
investments 9 36,367 54,429 90,796 409,284
_ _____ _ _
Net income/(expenditure)
before transfers (346,934) (30,295) (377,229) 401,742
Transfers between funds **……7 ** 19,546 (19,546) - -
_ _ _ _
Net movement in funds (327,388) (49,842) (377,230) 401,742
Total funds brought forward 8,321,170 1,072,488 9,393,658 8,991,916
__ __ ___ __
Total funds carried forward 7,993,782 1,022,646 9,016,428 9,393,658
__ __ ___ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

CHARITY AND CONSOLIDATED (GROUP) BALANCE SHEET AS AT 31 DECEMBER 2020

Note Charity Charity Group Group
2020 2019 2020 2019
£ £ £ £
Fixed assets
Tangible assets 11 1,579,967 1,549,239 1,622,576 1,612,342
Investments 12 6,385,509 6,507,696 6,462,988 6,656,910
___ ___ ___ ___
Total fixed assets 7,965,476
8,056,935		 8,085,564 8,269,252
___ ___ ___ ___
Current assets
Debtors 13 18,128 43,108 55,817 139,661
Cash at bank and in 825,979 1,022,015 962,838 1,147,469
hand ___ ___ ___ ___
Total current assets 844,107 1,065,123 1,018,655 1,287,130
___ ___ ___ ___
Liabilities
Creditors falling due 14 (29,742) (72,613) (88,248) (149,894)
within 1 year ___ ___ ___ ___
Net current assets 814,365 992,510 930,407 1,137,236
___ ___ ___ ___
Total assets less 8,779,841 9,049,445 9,015,974 9,406,488
current liabilities
Creditors falling due 14 - - - (2,249)
after 1 year
Provisions 16 - - 458 (10,581)
___ ___ ___ ___
Net assets 19 8,779,841 9,049,445 9,016,428 9,393,658
___ ___ ___ ___
Unrestricted 6,082,016 6,285,975 6,318,603 6,630,188
Restricted 17 1,022,646 1,072,488 1,022,646 1,072,488
Designated 18 1,675,180
1,690,982		 1,675,180 1,690,982
_____ ___ ___ ___
Total funds 8,779,841 9,049,445 9,016,428 9,393,658
__ ___ ___ ___

The financial statements were approved by the Trustees on 15 September 2021 and signed on their behalf by:

Judith Jenner ) ) Trustees Robert Morris )

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

GROUP STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Total
Funds
£
Net movement in funds
(377,230)
Depreciation Charge
105,854
Dividends and interest
(274,465)
Losses/(gains) on investments
(56,946)
(Increase)/decrease in debtors
83,843
Increase/(decrease) in creditors and provisions
(74,934)
_
Net cash used in operating activities
(593,878)
_
Cash flows from investing activities:
Dividends and interest received
274,465
Purchase of fixed assets
(116,088)
Net sale/(purchase) of investments
250,868
_
Net cash provided by investing activities
409,245
_
Cash flows from financing activities:
Repayment of borrowing
-
_
Management of liquid resources
Movement in short term deposits
50,321
_

Increase/(decrease) in cash in the year
(134,311)
Increase/(decrease) in short term deposits
(50,321)
Cash at bank and in hand
963,735

Short term deposits
183,734
_

Net funds brought forward
1,147,469

_
Cash at bank and in hand
829,424
Short term deposits
133,413
_

Net funds carried forward
962,838

_		 2019
Total
Funds
£
401,742
101,259
(81,884)
(409,284)
(31,076)
11,167
__
(8,076)
_
81,884
(20,429)
7,742
_
69,197
_
18,200
_
(146,625)
_
(67,304)
146,625
1,031,040
37,109
__
1,068,149
_
963,735
183,734
_
1,147,469
_ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

The charity is a registered charity in England and Wales and is unincorporated. The address of the area meeting office is: 40 Bull Street, Birmingham B4 6AF.

2.

Statement of compliance

These financial statements have been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended Practice applicable to the charities preparing their accounts in accordance with FRS 102 (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation and assessment of going concern

The financial statements incorporate the affairs of Central England Area Quaker Meeting and the Local Meetings and other Branches set out in note 21 to the financial statements. Transfers between the Local Meetings, the Branches and the Area Meeting are eliminated from income and expenditure. The financial statements also exclude those donations received by the Area Meeting and Local Meetings, which are paid over to various charities at the donors’ requests.

The financial statements also incorporate, where applicable and where amounts are described as ‘group’, the affairs of Priory Rooms (Bull Street) Limited, a wholly owned subsidiary.

The subsidiary, which is a limited company and not a charity has been consolidated on a line by line basis. Intergroup balances have been eliminated on consolidation.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Central England Quakers (CEQ) constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern, as set out in their report.

Fund accounting

In order to differentiate the availability of funds they are categorised according to the following definitions:

Income

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.

Voluntary income is recognised as above except where the income is subject to conditions that require a level of performance before the charity is entitled to the funds, when the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate and when the charity has been notified of the amount and settlement date.

Investment income is recognised when receivable and is shown gross to include income tax recovered and recoverable. Other income is accounted for on the basis of amounts receivable for the year.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Accounting policies (continued)

Donated services and facilities

Donated professional services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probably and that economic benefit can be measured reliably. The charity benefits greatly from the involvement and enthusiastic support of its many members, in accordance with the Charities SORP (FRS 102), the general volunteer time of members is not recognised.

On receipt, donated professional services or facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on the accruals basis, inclusive of any value added tax that cannot be recovered.

Taxation

Priory Rooms (Bull Street) Limited is chargeable to corporation tax on its income and capital gains. Otherwise Central England Area Quaker Meeting is a charity and is exempt from taxation on income derived from its charitable activities. Priory Rooms (Bull Street) Limited provides for taxation deferred as a result of timing differences that have originated but not reversed at the balance sheet date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible fixed assets

The charity owns a number of functional properties comprising Meeting Houses, wardens’ accommodation and their contents, and other buildings used by CEQ Branches. These buildings are held in perpetuity for Meetings for Worship or other charitable activities, and contribute to the furtherance of the Central England Quaker’s charitable objectives and are considered to be heritage assets under FRS 102. The heritage assets have been grouped together in the following categories:

Meeting Houses, Wardens’ Accommodation and other buildings

There is no cost or accumulated depreciation recognised for these heritage assets, as allowable under Section 18 of FRS 102. Whilst it is believed that the market value, both at the time of acquisition and at the balance sheet date, was significantly in excess of £nil deemed cost and net book value, it is not possible to obtain a reliable estimate of the market value at either date. Conventional valuation techniques are not appropriate for the unique and historical nature of the assets. In addition, the Trustees consider it an inefficient use of the charity’s funds to obtain valuations for all 16 properties and not befitting of the objectives of the charity.

Major expenditure on improvements to property at 40 Bull Street incurred during 1999 were capitalised and are being depreciated at 5% per annum on cost from 1 January 2004. Expenditure on the conference centre in Bull Street is being depreciated at 2% per annum on cost from 1 January 2004. A replacement heating system for 40 Bull Street was installed during 2020 and is being depreciated at 10% per annum on cost from 1 November 2020. This has been included within the Refurbishment of Meeting House asset category in note 11.

Any developments or improvements to the building greater than £10,000 are capitalised at cost and depreciated over the improvement’s useful economic life. Maintenance costs are charged to the SOFA in the period they are incurred.

Contents of Meeting Houses

A number of the Meeting Houses contents have also been recognised at £nil cost and £nil accumulated depreciation as it is impracticable and an inefficient use of the charity’s resources to value the specific items in the following categories: organs, pianos, Quaker artwork, library books and other contents.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Accounting policies (continued)

The Trustees capitalise individual items of equipment costing £10,000 or more where there is a continuing economic value and a reliable measurement of cost or fair value is available. These assets are depreciated annually so as to write off the cost over their economic useful lives. In the subsidiary company equipment is capitalised where the asset has a continuing economic value.

Other fixed assets, which have been capitalised, are being depreciated at the following annual rates on cost:

Furniture and fittings - at varying rates on cost
Computer equipment - 25% on cost
Heating and hot water system - 10 years
Refurbishment of Meeting house - 20 years
Conference Centre etc. - 50 years

Investments

All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange and fair value is equivalent to the market value. Holdings in common investment funds, unit trusts and open-ended investment companies are at bid price. The charity does not acquire put options, derivatives or other complex financial interests.

Investment properties are re-valued periodically or when changes in rental income necessitate revaluation. Fair value is generally open market value.

All gains and losses are taken to the Statement of Financial Activities as they arise.

Short term deposits comprise funds held in savings or deposit (rather than current) accounts which are surplus to immediate cash flow requirements and are classified as cash and cash equivalents.

Pension costs

The charity and its subsidiary contribute to defined contribution schemes for some of their employees. The pension cost represents the total amount payable to the schemes in the \year. The pension cost is directly charged to funds with contributory employees.

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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

4. Income

The comparative amounts for 2019 between consolidated funds are:

2019 2019 2019
Unrestricted Restricted Total
Funds Funds
___ ___ _____
£ £ £
Income
Donations and legacies 135,646 147,832 283,478
Charitable activities 180,882 57,502 238,384
Other trading activities 715,657 - 715,657
Investment Income 290,369 20,447 310,816
Other Income 15,027 556 15,583
_ _ __
Total income 1,337,581 226,337 1,563,918
_ _ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. Costs of raising funds (Group)

Costs of raising funds (Group)
Unrestricted Restricted 2020 2019
Funds Funds Total Total
___ __ ____ ____
£ £ £ £
Priory Rooms (Bull St) Limited:
Meeting & conference facilities 416,410 - 416,410 562,303
Corporation Tax (13,288) - (13,288) 1,827
Commercial lettings:
Letting fees 4,758 - 4,758 5,958
Other 1,097 3,428 4,525 17,558
_ _ _ _
408,977 3,428 412,405 587,646
_ _ _ ______
2019 571,879 15,767 587,646
______ _____ _

6. Expenditure on charitable activities (Group)

Support, governance and other costs are directly incurred by the various funds, there is no apportionment required centrally and there are no central function costs.

Unrestricted Restricted 2020 2019
Funds Funds Total Total
___ ___ ______ _____
£ £ £
Payroll costs 103,298 120,354 223,652 207,706
Repairs and maintenance 152,430 44,162 196,592 217,985
Costs of Quaker activities 323,363 60,183 383,546 264,129
Depreciation 105,854 - 105,854 101,259
Other employee costs 56,027 12,640 68,667 93,928
Utilities 32,536 4,841 37,377 47,065
Insurance 20,099 2,229 22,328 20,818
Costs of governance 32,899 - 32,899 28,531
Other costs 2,660 5,707 8,367 2,393
_ _ _ ______
829,165 250,116 1,079,281 983,814
_ _ _ ______
2019 715,309 268,505 983,814
______ _____ _

Included within the expenditure on activities are amounts paid to defined contribution pension plans for employees of £11,513 (2019: £18,117).

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Expenditure on charitable activities (continued)

Costs of governance includes the auditors’ remuneration of £9,420 (2019: £9,420) for auditing and accounting fees which is incurred by the central funds and is not apportioned to individual Branches. The amount also includes irrecoverable value added tax.

7.

Restricted Transfers

The transfers from the restricted funds are the result of the release of previously restricted funds in the prior year being adjusted for in the current year. Due to the relatively small value of the transfer, the fact that the overall fund position remains unchanged and the fact that the funds can now be used more flexibly, the misclassification is not considered material for a restatement of prior year figures.

8. Staff details and analysis of staff costs, trustee remuneration and expenses

The charity does not employ a chief executive and the Trustees consider the key management personnel to be the Trustees. The Trustees were not paid or received any other benefits from employment with the charity or its subsidiary in the year (2019: £Nil). No Trustees received reimbursement of travelling expenses in 2020 (2019: £Nil). No trustee received payment for professional or other services supplied to the charity (2019: £Nil).

No employee earned £60,000 per annum or more (2019: £Nil). Pension costs are incurred directly by the cost centre where staff are employed and allocated to the various funds accordingly.

There are 8 statutory directors of the subsidiary (2019: 8) who receive no remuneration or benefits.

The average number of employees during the year analysed by function was:

The average number of employees during the year analysed by function was:
2020 2019
Conference facilities 13 13
Other Branches and projects 7 5
Wardens, caretakers and gardeners 8 9
Administration 1 1
___ ___
29 28
___ ___
The total staff costs for the year were:
2020 2019
£ £
Wages and salaries – conference facilities 258,423 243,215
Wages and salaries – other 198,679 152,660
National insurance 30,043 47,179
Pension costs 23,270 29,486
_ _
510,415 472,540
_ _

All conference facilities staff are employed by the subsidiary company, Priory Rooms (Bull Street) Limited. These costs are included in costs of raising funds.

9. Net gains/(losses) on investments

Net gains/(losses) on investments
2020 2019
£ £
Unrestricted (19,729) 87,711
Designated 56,096 196,525
Restricted 54,429 125,048
_ _
Total net gains 90,796 409,284
_ _

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. Related party transactions

11. Tangible fixed assets

Group
Refurbishment Conference Furniture Computer
of Meeting House centre etc. & fittings equipment Total
£ £ £ £ £
Cost
At 1 January 2020 744,563 2,015,647 243,212 34,418 3,037,840
Additions 110,104 - 5,284 700 116,088
_ __ _ ______ __
At 31 December 2020 854,667 2,015,647 248,496 35,118 3,153,928
_ __ _ ______ __
Depreciation
At 1 January 2020 572,129 638,842 182,864 31,663 1,425,498
Charge for year 39,063 40,313 25,162 1,316 105,854
_ __ _ ______ ______
At 31 December 2020 611,192 679,155 208,026 32,979 1,531,352
_ __ _ ______ ______
Net book amounts
At 31 December 2020 243,475 1,336,492 40,470 2,139 1,622,576
_ __ _ ______ __
At 31 December 2019 172,434 1,376,805 60,348 2,755 1,612,342
_ _ ______ __ __
Charity
Refurbishment Conference Furniture Computer
of Meeting House centre etc. & fittings equipment Total
£ £ £ £ £
Cost
At 1 January 2020 744,563 2,015,647 10,262 - 2,770,472
Additions 110,104 - - - 110,104
_ __ _ ______ __
At 31 December 2020 854,667 2,015,647 10,262 - 2,880,576
_ __ _ ______ __
Depreciation
At 1 January 2020 572,129 638,842 10,262 - 1,221,233
Charge for year 39,063 40,313 - - 79,376
_ __ _ ______ ______
At 31 December 2020 611,192 679,155 10,262 - 1,300,609
_ __ _ ______ ______
Net book amounts
At 31 December 2020 243,475 1,336,492 - - 1,579,967
_ __ _ ______ __
At 31 December 2019 172,434 1,376,805 - - 1,549,239
_ __ _ ______ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Tangible fixed assets (continued)

All Group tangible assets are classified as unrestricted funds as they are held as part of the Trustees Fund where all assets are used for whatever is deemed appropriate to further the charity’s objectives.

Refurbishment of Bull St Meeting House

During 1999 a programme of improvement and refurbishment was carried out at 40 Bull Street at a cost of £702,704, which has been capitalised and is being depreciated at 5% per annum from 1 January 2004.

During 2020 a new boiler and heating system was installed at 40 Bull Street at a cost of £110,104, which has been capitalised and is being depreciated at 10% per annum from 1 November 2020.

Conference Centre

The centre consists of a conference suite and ground level refreshment area for the use of the charity and other Quaker and charitable bodies together with significant commercial use. The operation of the centre is managed by the charity’s subsidiary company, Priory Rooms (Bull Street) Limited. The conference centre is being depreciated at 2% per annum from 1 January 2004.

Heritage assets

As described in the accounting policies note, there is a cost and accumulated depreciation of £nil for the Meeting Houses and wardens’ accommodation owned and used by the charity and group for Worship and charity activities. The buildings are maintained by the charity for their contribution to knowledge and culture of the Quaker faith. It would be impracticable and an inefficient use of the charity’s funds to obtain market valuations for such unique assets and their contents. A description is given of each of the assets below and the year in which the Meeting Houses were constructed. On the basis of the age of the properties, had the original cost been capitalised, the Trustees are of the view that the assets would be fully depreciated at the balance sheet date. No reliable information exists to include original cost and accumulated depreciation amounts.

The charity is the beneficial owner of the following heritage asset properties:

Type of property Year Address
Freehold
Meeting House and wardens’ bungalow 1969 6 & 6b Sandhills Road, Barnt Green, B45 8NR
Meeting House and wardens’ bungalow 1964 23 Watford Road, Cotteridge, Birmingham, B30 1JB
Meeting House 1930 Church Road, Northfield, Birmingham, B31 2LB
Meeting House and Conference Centre 1931 40 Bull Street, Birmingham, B4 6AF
CEQ Peace Hub 1931 41 Bull Street, Birmingham B4 6AF
Meeting House 1953 Hill Street, Coventry, CV1 4AN
Meeting House 1892 George Road, Edgbaston, Birmingham, B15 1JP
Meeting House 1927 Hamlet Road, Hall Green, Birmingham, B28 9BG
Meeting House and wardens’ house 1972 112 Castle Road, Hartshill, CV10 0SG
Meeting House * 1983 17 Colmore Row, Kings Heath, Birmingham, B14 7PE
Meeting House and wardens’ flat 1695 39 High Street, Warwick, CV34 4AX
Meeting House 1939 Kenelm Road, Sutton Coldfield, B73 6HD
Woodlands Quaker Home 1945 434 Penn Road, Penn, Wolverhampton, WV4 4DH
Long leasehold
Meeting House 1689 Scotts Road, Stourbridge, DY8 1UR
Meeting House 1905 65 Linden Road, Bournville, Birmingham, B30 1JT
Short leasehold
Meeting House 1926 930 Bristol Road, Selly Oak, Birmingham, B29 6NP

The heritage asset contents of the above properties for which there is no recorded cost are classified into the following categories: organs, pianos, Quaker artwork, library books and other contents. The Trustees preserve these assets by keeping a register of assets held at each Branch and insuring the assets appropriately to protect them from damage or loss.

The titles to all of the properties owned by the charity and group are held by Friends Trusts Ltd as Nominee with strict restrictions on disposition of the freehold which requires authorisation by an order of the court.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Fixed asset investments

Group investments:

Fixed asset investments
Group investments:
2020 2019
Freehold Listed Freehold Listed
properties securities properties securities
£ £ £ £
Market value brought forward 4,304,500 2,352,410 4,257,000 1,998,368
Net additions/(sales) - (250,868) - (55,242)
Revaluation (33,850) 90,796 47,500 409,284
__ __ __ __
Total Group investments 4,270,650 2,192,338 4,304,500 2,352,410
__ __ __ __
Group fixed asset investments are held between funds as follows:
2020 2019
£ £
Unrestricted 4,566,505 4,659,487
Restricted 793,032 813,181
Designated 1,103,451 1,184,242
__ __
Total Group investments 6,462,988 6,656,910
__ __
Charity investments:
2020 2019
£ £
Market value
Freehold properties 4,270,650 4,304,500
Listed securities 2,114,859 2,203,196
__ __
Total Charity investments 6,385,509 6,507,696
__ __

Freehold Properties

The charity and group own the following freehold investment properties held by Friends Trusts Ltd as Nominee:

A bungalow adjacent to Barnt Green Meeting House at 6a Sandhills Road, Barnt Green. The property was valued on an open market basis at £180,000 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020. The property is subject to a shorthold tenancy.

The property known as Redditch Meeting House, Matchborough, Redditch, B98 0ER. Following the termination of a lease to Worcester County Council (from 2009 to 2015), the property was let on short lease from 1 November 2015 to Latham School of Dance and from 1 August 2018 to Amelia’s Dance Academy. The property was revalued on an open market basis at £67,000 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Fixed asset investments (continued)

Private flat and community cafe at 39 High Street Warwick CV34 4AX. The property was valued on an open market basis at £120,000 by Lawrence and Wightman, Chartered Surveyors on 31 December 2020. The property has been let to a private tenant since June 2016.

Office accommodation at 51 Church Road, Northfield, Birmingham, B31 2LB. This property was valued on an open market basis at £116,000 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020. It is leased to Oulsnam and a renewed ten year lease from 25 December 2013 was signed in August 2014.

Office accommodation at 53 Church Road, Northfield, Birmingham, B31 2LB. It was valued on an open market basis at £80,500 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020. It is leased to ecobirmingham, and a five year lease was signed on 2 July 2018.

A bungalow adjacent to the Meeting House in Selly Oak was formerly warden’s accommodation and treated as a functional property but during 2014 it was adapted for commercial letting, and was reclassified as an investment property. The property was valued on an open market basis at £27,150 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020.

A flat within the Hartshill Meeting House has been converted into private rented accommodation and was reclassified as an investment property for 2019. The flat was valued at £65,000 on an open market basis by Lawrence & Wightman on 31 December 2020.

An office development on land owned by the Area Meeting at 1 Colmore Square, Birmingham. The land is let on a 250 years lease from 29 September 1999 and was valued on an open market basis at £3,615,000 by Lawrence & Wightman, Chartered Surveyors on 31 December 2020.

The types of investment held at 31 December 2020 and their market values were:

2020 2019
£ £
Listed investments (incl. loan stocks) 278,995 232,797
Investment properties 4,270,650 4,304,500
Social investments 7,694 7,341
Other investments (Unit Trusts, Branch & Trustee Reserves) 1,905,649 2,112,272
____ ____
Total Group investments 6,462,991 6,656,910
____ ____

Unlisted investments

The charity owns 100% of the Ordinary share capital of Priory Rooms (Bull Street) Limited (company number: 05129631). There is no investment cost included in for the subsidiary in the charity’s balance sheet, with all profit is donated back to the parent entity to support with the charitable objectives of Central England Quakers.

Central England Quakers.
2020 2019
£ £
Aggregate capital and reserves 236,589 344,215
Profit for the year after taxation (107,626) 149,592

The 2019 profit before taxation is inclusive of a £120,000 donation to CEQ that was treated as a dividend distribution as required by the technical guidance released by The Institute of Chartered Accountants in England and Wales (ICAEW). No such dividend was made in 2020.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Fixed asset investments (continued)

The following is a summary of the profit for the year after taxation in Priory Rooms (Bull Street) Limited.

2020 2019
£ £
Sales of conference facilities 188,942 715,657
Cost of sales (20,974) (114,512)
Distribution costs (2,805) (7,028)
Administrative expenses (419,109) (464,481)
Other operating income 129,539 -
Management charge to parent charity - (6,000)
______ _
Operating profit/(loss) (124,407) 123,636
Income and realised gains from investments 1,975 5,856
Gain on financial assets at fair value 1,518 21,927
______ _
Profit before taxation (120,914) 151,419
Provision for deferred taxation (note 17) 13,288 (1,827)
_ ______
Profit after taxation (107,626) 149,592
_ ______
The company paid a dividend of £Nil to the parent charity during the year (2019: £120,000).

13. Debtors

Debtors
2020 2019
£ £
Group
Trade debtors 2,568 71,519
Other debtors 53,249 68,142
_ ______
55,817 139,661
_ ______
2020 2019
£ £
Charity
Trade Debtors - …….-
Other debtors 18,128 43,108
_ ______
150,538 43,108
_ ______

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Creditors: Amounts falling due within one year

Creditors: Amounts falling due within one year
2020 2019
£ £
Group
Trade creditors 10,750 12,053
Social security and other taxes 26,245 42,998
Accruals 51,253 94,843
______ ______
88,248 149,894
______ ______
2020 2019
£ £
Charity
Social security and other taxes 5,497 13,780
Accruals 24,246 58,833
______ ______
29,743 72,613
______ ______
Creditors: Amounts falling due after one year
2020 2019
£ £
Group
Corporation Tax (in Subsidiary) - 2,249
______ ______
- 2,249
______ ______

15. Secured assets

Freehold land and buildings at Penn Road, Wolverhampton, West Midlands, WV4 4DH, have been given as security for loan finance obtained in the Charity’s name from Triodos Bank NV and in turn made available to Woodlands Quaker Home in respect of expenditure on new buildings. The amount of loan finance outstanding at 31 December 2020 was £67,013 (2019: £70,085). The loan is not included in these financial statements as the charity does not expect to have to meet any part of the debt. The last relevant market valuation for the secured property was £1,450,000 in May 2019.

Friends Trusts Ltd, as nominee for land, is a party to the leases (excluding tenancy agreements) pertaining to CEQ investment properties, which are 1 Colmore Square, Redditch Meeting House, 51 Church Road, 53 Church Road and the Woodlands.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Provision for liabilities

Provision for liabilities
2020 2019
£ £
Deferred tax
Accelerated capital allowances (459) 10,581
_____ _____
Deferred tax
£
Balance at 1 January 2020 10,581
Provided during year (11,040)
_____
At 31 December 2020 (459)
_____

The provision for deferred taxation arises in the charity’s subsidiary company. The provision relates to unrestricted funds in 2020 and 2019.

17. Restricted funds (Charity and Group)

Opening Income Expenditure Investment Transfers Closing
Balance gains/(losses) Balance
£ £ £ £ £ £
___ _ _____ ______ ____ ____
Local Meetings 209,158 68,732 (86,685) 5,325 (49,174) 147,356

Other Branches		 161,528 92,512 (162,744) 1,523 86,000 178,819
Building Fund 496,434 7,576 (4,115) 34,665 (56,374) 478,186
Trustees Reserves 205,369 - - 12,917 - 218,286
___ _ _____ ______ ____ ____
Restricted funds 1,072,488 168,820 (253,544) 54,429 (19,547) 1,022,646
___ _ _____ ______ ____ ____

Local Meetings funds are for the purpose of the respective Meetings and are raised from their members or from letting their premises to third parties. These funds are needed for the repair and maintenance of premises, to meet various administrative costs and to support committees and charitable activities. Local Meetings also organise collections after Meeting for Worship for a variety of bodies, some of which are Quaker and others not. These monies pass through the Local Meetings on to the bodies concerned. The Local Meetings may also choose to add to a collection or make a special grant from funds for charitable purposes.

Other Branches consist of those bodies set up by the Area Meeting for particular purposes and identified in the Trustees Report. The definition of a Branch is a committee or project that has its own bank account.

As described in the Trustees Report, branches of note are West Midlands Quaker Peace Education Project (known as “Peacemakers”) and Peace Hub.

Building Fund Investments (previously classified as designated) comprise of investments held to support the maintenance, repair and improvement of the charity’s Meeting Houses. The income from the investments is applied to a designated “Building Fund” bank account from which grants and loans are made to individual Local Meetings.

In Trustees' Reserve Funds, there are four Reserve Funds which consist of investments held by Trustees, derived from the sale of previous Meeting Houses together with some bequests, where the income is applied to the benefit of some Local Meetings. The two Funds which remain restricted are the proceeds of Atherstone Meeting House with income applied to Hartshill Local Meeting and the proceeds of Cotteridge Land Sale with income applied to Cotteridge Local Meeting.

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Designated funds (Charity and Group)

Opening Income Expenditure Investment Transfers Closing
Balance gains/(losses) Balance
£ £ £ £ £ £
___ _ _____ ______ ____ ____
Local Meetings 939,529 225,475 (287,243) 30,946 42,164 950,872
JYF Branch 1,648 20 (60) - - 1,608
Redditch 15,479 18 (14) - - 15,483
Bull Street 57,938 - (34,980) - 105,000 127,958
Building Fund 54,112 40,000 (74) - (26) 94,012
Black Country 26,133 7,896 (74) - (20,000) 13,955
Sellywood House 334,962 - (150,000) 8,726 - 193,688
Trustees Reserves 261,181 - - 16,424 - 277,605
___ _ _____ ______ ____ ____
Designated funds 1,690,982 273,447 (472,445) 56,096 127,138 1,675,180
___ _ _____ ______ __ ____

Local Meetings funds are for the purpose of the respective Meetings and are raised from their members or from letting their premises to third parties. These funds are needed for the repair and maintenance of premises, to meet various administrative costs and to support committees and charitable activities. Local Meetings also organise collections after Meeting for Worship for a variety of bodies, some of which are Quaker and others not. These monies pass through the Local Meetings on to the bodies concerned. The Local Meetings may also choose to add to a collection or make a special grant from funds for charitable purposes.

Redditch Building Fund is held in respect of the Redditch Meeting House. The Meeting House at Redditch is no longer used by the Local Meeting and is leased to a Dance School. The landlord’s responsibilities therefore lie with the Trustees and the previous sinking fund is held in a CAF Gold Account entitled ‘Redditch Building Fund’ to cover those items that are defined in the lease as being the responsibility of the landlord. Part of the fund was used in 2015 to make property ‘fit for purpose’ for the new tenant.

In 2009 a separate Bull Street fund was established to provide for the future refurbishment of the 40 Bull Street property (including Priory Rooms Conference Centre). The fund was used between 2014 and 2016 to support the refurbishment of Bull Street Meeting House (and Priory Rooms) and the conversion of the adjacent 41 Bull Street property for Quaker use as a Peace and Justice Centre (Peace Hub). Since 2016 the Fund has been used for annual repairs, maintenance and improvements to both properties. The principal source of income is transfers from the Trustee Fund. The Bull Street Investments were merged with the Building Fund Investments on 1 January 2019.

The Building Fund receives income from Building Fund Investments (see Restricted Funds) and provides loans or grants to assist Local Meetings to maintain their properties if a major repair is beyond their means and to carry out agreed improvements to premises.

The Black Country Fund is a designated fund established by area meeting in June 2015 to support the development of Quakerism in the Black Country. The fund comprises the residual assets of the former Dudley Local Meeting, which was laid down on 31 December 2015, and receives the dividend income from one of the Trustee Reserve Funds known as “Dudley Meeting Houses” (see below).

Sellywood House Fund was originally created to provide bursary support to Friends in residence at Sellywood House (a home for elderly Quakers). The capital is owned by the Area Meeting, and until the end of 2008 the income was distributed to Friends in need by a CEQ committee. In late 2008 a decision was made to wind up the committee and to mandate the income from the investments to The Charities of Susanna Cole and Others, charity number 204531 (a related Quaker charity), delegating to Susanna Cole Trustees the responsibility for distributing the income to Friends in need. Accordingly, from 1 January 2009, the scheme ceased to operate as a Branch of the CEQ charity, and the capital investments were reclassified as a designated fund. During 2020 £150,000 of this fund was sold to provide grants to two sister charities providing care for elderly people, Old People’s Fund Trust (£100,000) and Woodlands Quaker Home (£50,000).

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Designated funds (continued)

In Trustees' Reserve Funds, there are four Reserve Funds which consist of investments held by Trustees, derived from the sale of previous Meeting Houses together with some bequests, where the income is applied to the benefit of some Local Meetings. Previously classified as Restricted, two of the four funds have been reclassified as designated; Dudley Meeting Houses with income applied to the Black Country Fund and Proceeds of Church Road Properties Northfield with income applied to the Northfield Development Committee.

19. Analysis of Group assets between funds

Fixed Net Creditors
Tangible Asset Current due after
Fixed Assets Investments Assets one year Total
_____ ____ _ __ ____
£ £ £ £ £
Unrestricted funds 1,514,307 4,566,505 237,332 459 6,318,603
Restricted funds
Local Meetings - 84,001 63,356 - 147,357
Other Branches - 25,735 153,084 - 178,819
Building Fund - 465,010 13,174 - 478,184
Trustees Reserves - 218,286 - - 218,286
Designated funds
Local Meetings (incl.JYF) - 632,158 320,322 - 952,480
Redditch - - 15,483 - 15,483
Bull Street 108,269 - 19,689 - 127,958
Building Fund - - 94,011 - 94,011
Black Country - - 13,955 - 13,955
Sellywood House - 193,688 - - 193,688
Trustee Reserves - 277,605 - - 277,605
__ _ _ _ __
1,622,576 6,462,988 930,405 459 9,016,428
__ _ _ _ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Consolidated (Group) Statement of Financial Activities for the year ended 31 December 2019

Unrestricted Restricted Total Total
Funds Funds 2019 2018
___ ___ _____ _____
£ £ £ £
Income
Donations and legacies 135,646 147,832 283,478 328,108
Charitable activities 180,882 57,502 238,384 332,760
Other trading activities 715,657 - 715,657 687,211
Investment Income 290,369 20,447 310,816 297,455
Other Income 15,027 556 15,583 13,001
_ _ __ __
Total income 1,337,581 226,337 1,563,918 1,658,535
_ _ __ __
Expenditure
Cost of raising funds (571,879) (15,767) (587,646) (576,845)
Charitable activities (715,309) (268,505) (983,814) (963,245)
Other Expenses - - - (121,424)
_ _ __ __
Total expenditure (1,287,189) (284,272) (1,571,461) (1,661,514)
_ _ __ __
Net gains/(losses) on
investments 284,236 125,048 409,284 (32,039)
_ _____ _ _
Net income/(expenditure)
before transfers 334,629 67,113 401,741 (35,018)
Transfers between funds (93,916) 93,916 - -
_ _ _ _
Net movement in funds 240,713 161,029 401,742 (35,018)
Total funds brought forward 8,080,457 911,459 8,991,916 9,026,934
__ __ ___ __
Total funds carried forward 8,321,170 1,072,488 9,393,658 8,991,916
__ __ ___ __

THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Capital commitments

There was no future capital expenditure contracted for but not provided in the financial statements at 31 December 2020 and 31 December 2019.